HomeMy WebLinkAbout2026 06.01 City Council Work Session Agenda 04 �,?ACHf� City of Apache Junction, Arizona Meeting location:
+� City Council Chambers
1U Z at City Hall
Agenda 300 E.Superstition Blvd.
\gilONr Apache Junction,AZ
City Council Work Session 85119
apachejunctionaz.gov
Ph:(480)982-8002
Doors are open to the public at least 15 minutes prior to the
posted meeting start time.
Monday,June 1,2026 7:00 PM City Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. AGENDA ITEMS
1. 26-257 Presentation and discussion on Professional Services Agreement
between City of Apache Junction and the Apache Junction Chamber of
Commerce for Operation of a Local Visitor Information Center.
Sponsors: Brock Severson
Attachments: Visitor Center Staff Memo
Visitor Center Agreement
Visitor Center Council Presentation- Economic Development
Visitor Center Council Presentation-Apache Junction Area Chi
2. 26-259 Presentation and discussion of Resolution No. 26-25 authorizing an
intergovernmental for cooperative law enforcement training operations
with the City of Mesa.
Sponsors: Michael Pooley
Attachments: Memo to Council
Resolution No.26-25
Council Presentation Mesa PD IGA 2026
City of Apache Junction,Arizona Page 1 Printed on 5/28/2026
City Council Work Session Agenda June 1,2026
3. 26-280 Presentation and discussion on the Third Amendment to the
Professional Services Agreement between the City of Apache Junction
and Central Arizona Council on Developmental Disabilities for senior
services transportation.
Sponsors: Jamie Sullivan
Attachments: Memo to Council
CACDD 2017 Senior Transportation Contract
CACDD 2022 First Amendment
CACDD 2024 Second Amendment
CACDD 2026 Third Amendment- DRAFT
CACDD Senior Transportation Amendment
4. 26-284 Presentation and discussion regarding Resolution No. 26-02,
authorizing the submittal of a Recreation Trails Program grant
submittal to the Arizona State Parks Department for signage along the
multi-use trail system managed by Parks and Recreation.
Sponsors: Liz Langenbach
Attachments: Resolution No.26-02-State Parks Grant
RTP Grant Presentation June 2026
5. 26-281 Presentation and discussion of case P-26-6-PZ, a request by
Kimberly Bergman for a rezoning of 275 S. Cactus Road, an
approximately 1.25 gross acre parcel from Medium Density
Single-Family Detached Residential ("RS-10M") to General Rural
Low Density Single-Family Detached Residential ("RS-GR").
Sponsors: Hudson Meyer
Attachments: Memo to Mayor&Council P-26-6-PZ
P-26-6-PZ Staff Report and Attachments
P-26-6-PZ 6-1-26 CC Presentation (002)
6. 26-271 Presentation and discussion on livestock feed as part of the Model City
Tax Code (MCTC).
Sponsors: Chip Wilson and Darryl Cross
Attachments: Memo to City Council Livestock Feed
Ordinance No. 04
9-1-1987 Minutes
Ordinance No. 588
City of Apache Junction,Arizona Page 2 Printed on 5/28/2026
City Council Work Session Agenda June 1,2026
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.
City of Apache Junction,Arizona Page 3 Printed on 5/28/2026
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No. 1.
Piz File ID: 26-257
Sponsor: Brock Severson Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion on Professional Services Agreement between City of Apache
Junction and the Apache Junction Chamber of Commerce for Operation of a Local Visitor
Information Center.
City of Apache Junction,Arizona Page 1 Printed on 512812026
City of Apache Jnnetion
� M11-1 300 East Sulerstition Boulevard • Apache Junction, Arizona 85119
DATE: June 1, 2026
MEMORANDUM TO: The Honorable Mayor& City Councilmembers
MEMORANDUM THRU: Bryant Powell, City Manager
Matt Busby, Assistant City Manager
Ryan Kaup, Economic Development Director
MEMORANDUM FROM: Brock Severson, Economic Development Specialist
SUBJECT: Recommendation for the Contract Extension of Local
Visitor Center
Since 1988, the City of Apache Junction has contracted with the local Chamber of Commerce to
operate a visitor center. Visitor centers help promote Arizona communities, their attractions,
destinations, dining options, and hospitality amenities. Primarily operated by local chambers of
commerce or visitor bureaus, these information centers often serve as a visitor's first stop,
giving cities the opportunity to provide a positive first impression of the surrounding area and
Arizona.
Our current contract for these services is with the Apache Junction Chamber of Commerce and
has a term ending June 30, 2026. According to the City's Procurement Procedures, professional
services for travel and tourism center or marketing efforts are exempt from releasing a Request
for Qualifications.
To find the most qualified provider, staff utilizes the Arizona Office of Tourism (AOT) as a
resource to find a provider that is affiliated with AOT's accredited Arizona Visitor Information
Center (AVIC) program. Being a State-accredited visitor center means the provider has been
vetted, meets established guidelines, receives exposure with listings on official Visit Arizona
publications, and is operating as per requirements of the State's program (Exhibit A).
Staff is recommending the City continues to contract for visitor center services with the Apache
Junction Chamber of Commerce for the following reasons:
• The City of Apache Junction does not have a physical facility to house these services,
nor the staffing capacity to operate a facility
• The Chamber of Commerce is an AOT-accredited visitor center and intends to maintain
their status as such.
• The current Apache Junction Visitor Center is one of the most trafficked visitor centers in
Arizona, has demonstrated the ability to perform, receives positive reviews from visitors,
and operates a volunteer-run facility which is well-located in our downtown.
Voice (480) 982-8002 • Fax(480) 982-7018 • TDD (480) 983-0095 www.ajcity.net
300 E. Superstition Boulevard, Apache Junction,AZ 85119
In our current contract with the Apache Junction Chamber of Commerce ending June 30tn
2026, the contracted amounts increase four percent year-over-year, with $58,400 as the amount
that was due for this fiscal year. Staff respectfully requests Council approve a new three-year
contract, with options for two one-year extensions, and the continuation of the four percent
annual escalator. The following amounts are listed below, paid quarterly and subject to Council-
appropriation of funds:
• FY 26/27: $60,736.00
• FY 27/28: $63,166.00
• FY 28/29: $65,692.00
Extension Options:
• FY 29/30: $68,320.00
• FY 30/31: $71,052.00
Staff will provide a presentation on this item for the June 1, 2026, Work Session and then plan
to bring this item back on the June 16, 2026, Regular Meeting consent agenda.
Voice (480) 982-8002 • Fax(480) 982-7018 • TDD (480) 983-0095 www.ajcity.net
300 E. Superstition Boulevard, Apache Junction,AZ 85119
PROFESSIONAL SERVICES AGREEMENT BETWEEN
CITY OF APACHE JUNCTION AND
THE APACHE JUNCTION CHAMBER OF COMMERCE
FOR OPERATION OF A LOCAL VISITOR INFORMATION CENTER
THIS AGREEMENT is made as of the day of 20 (the
"Effective Date") by and between the CITY OF APACHE JUNCTION, an Arizona
municipal corporation ("City"), and APACHE JUNCTION CHAMBER OF
COMMERCE, an Arizona non-profit corporation ("Consultant"), sometimes
collectively referred to as the "Parties" or individually as a "Party.".
RECITALS
A. City desires to retain a consultant to operate a local visitor
information center and to make payment for the same in accordance with the
terms and conditions set forth in this Agreement, including all attachments and
addenda which are appended to it.
B. The open market procedures have been satisfied to the extent they
apply.
C. The Parties have set forth below contemplated services Consultant
will provide to City, including payment terms for such services and products.
AGREEMENT
NOW, THEREFORE, in consideration of the Recitals noted above, the
mutual covenants and conditions below, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows:
1. CONSULTANT'S DUTIES: Consultant agrees to perform the
professional services detailed in Exhibits A and C (the "Services").
2. COMPENSATION: In accordance with Exhibit B and the terms and
conditions of this Agreement, City shall compensate Consultant for the Services
in an amount not to exceed One Hundred Eighty Nine Thousand Five Hundred
Ninety Four Dollars and Zero Cents ($189,594.00) (the "Contract Amount").
3. CONSULTANT BILLING: Consultant shall invoice City on a time and
expense basis in a total amount not to exceed the Contract Amount. City agrees
to process for payment invoices received from Consultant within thirty (30)
calendar days following receipt of such invoices, provided Consultant fulfills all
duties and obligations set forth in this Agreement. Review of invoices by City may
include an inspection of the Services.
4. TERM: The term of this Agreement shall commence on July 1, 2026
and end on June 30, 2029. Following the initial term, the Parties may extend this
Agreement for up to two (2) additional one-year periods. 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 Consultant.
5. CITY'S STANDARD OF PERFORMANCE: City shall furnish Consultant
with all data, information and other supporting services necessary for Consultant
to perform the Services.
6. CONSULTANT'S STANDARD OF PERFORMANCE: While performing
the Services, Consultant shall exercise the reasonable professional care and skill
customarily exercised by reputable members of Consultant's profession
practicing in the Phoenix Metropolitan Area, and shall use reasonable diligence
and best judgment while exercising its professional skill and expertise.
Consultant shall be responsible for all errors and omissions Consultant or its
subcontractors commit in the performance of this Agreement.
7. NOTICES: All notices to a Party required under this Agreement shall
be in writing and sent by first class certified mail, postage prepaid, return receipt
requested, addressed to the following:
If to City: City of Apache Junction
Ryan Kaup, Economic Development Director
300 East Superstition Boulevard
Apache Junction, AZ 85119
If to Consultant: Apache Junction Chamber of Commerce
Mary Ann Przybylski, President & CEO
567 West Apache Trail
Apache Junction, AZ 85120
8. INSURANCE:
8.1. General Provisions. Consultant, 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.
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Consultant's insurance shall be primary insurance as respects the City, and any
insurance or self-insurance maintained by City shall not contribute to it.
Any failure to comply with the claim reporting provisions of the insurance policies
or any breach of an insurance policy warranty shall not affect coverage afforded
under the insurance policies to protect City.
The insurance policies, except Workers' Compensation, shall contain a waiver of
transfer rights of recovery (subrogation) against City, its agents, officers, officials
and employees for any claims arising out of Consultant's acts, errors, mistakes,
omissions, work or service.
The insurance policies may provide coverage which contains deductibles or self-
insured retentions. Such deductible and/or self-insured retentions shall not be
applicable with respect to the coverage provided to City under such policies.
Consultant shall be solely responsible for the deductible and/or self retention and
City, at its option, may require Consultant to secure payment of such deductibles
or self-insured retentions by a surety bond or an irrevocable and unconditional
letter of credit.
The insurance policies required by this Agreement, except Workers'
Compensation and Professional Liability, shall name City, its elected officials,
agents, officers, and employees as Additional Insured Parties.
Consultant 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 Consultant. The
purpose of this provision is to require any lower tier subcontractor, regardless of
level, to provide insurance and indemnity required by this Agreement.
8.2. Commercial General Liability. Consultant 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.
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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
Consultant's operations and products and completed operations.
If Consultant sublets any part of the Services, Consultant shall purchase and
maintain, at all times during prosecution of the Services an Owner and
Consultant'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 Consultant's Commercial General Liability insurance.
8.3. Automobile Liability. Consultant shall maintain Commercial/Business
Automobile Liability insurance with a combined single limit for bodily injury and
property damage of not less than $1,000,000 each occurrence with respect to
Consultant's owned, hired, and non-owned vehicles assigned to or used in
performance of 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.
8.4. Workers' Compensation. Consultant shall carry Workers'
Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Consultant'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, Consultant 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 Consultant has no employees for whom Workers' Compensation insurance is
required by federal or state statutes, Consultant shall submit a declaration or
affidavit to City so stating and covenanting to obtain such insurance if and when
Consultant employs any employees subject to coverage.
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8.5. Certificates of Insurance. Prior to commencing the Services,
Consultant shall furnish City with Certificates of Insurance, or formal
endorsements as required by the Agreement, issued by Consultant's insurer(s),
as evidence that policies providing the required coverages, conditions and limits
required by this Agreement are in full force and effect. City shall not be obligated,
however, to review same or to advise Consultant of any deficiencies in such
policies and endorsements, and such receipt shall not relieve Consultant from, or
be deemed a waiver of, City's right to insist on strict fulfillment of Consultant's
obligations under this Agreement.
The 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 Consultant's work or services and as evidenced by annual
Certificates of Insurance.
Consultant 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.
9. APPLICABLE LAW AND VENUE: The terms and conditions of this
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Arizona. Any action at law or in equity brought by either Party for the
purpose of enforcing a right or rights provided for in this Agreement, shall be tried
in a court of competent jurisdiction in Pinal County, State of Arizona. The Parties
hereby waive all provisions of law providing for a change of venue in such
proceeding to any other county. In the event either Party shall bring suit to
enforce any term of this Agreement or to recover any damages for and on account
of the breach of any term or condition in this Agreement, it is mutually agreed that
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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.
10. FORCE MAJEURE: Neither City nor Consultant, as the case may be,
shall be considered not to have performed its obligations under this Agreement
in the event of enforced delay (an "Enforced Delay") due to causes beyond its
control and without its fault or negligence or failure to comply with applicable
laws, including, but not restricted to, acts of God, fires, floods, epidemics,
pandemics 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 consultants,
contractors, subcontractors, vendors or investors desired by Consultant in
connection with the obligations under this Agreement. Consultant agrees that
Consultant alone will bear all risks of delay which are not Enforced Delay. In the
event of the occurrence of any such Enforced Delay, the time or times for
performance of the obligations of the Party claiming delay shall be extended for a
period of the Enforced Delay; provided, however, that the Party seeking the
benefit of the provisions of this Section 10 shall, within thirty (30) calendar days
after such Party knows or should know of any such Enforced Delay,first notify the
other Party of the specific delay in writing and claim the right to an extension for
the period of the Enforced Delay; and provided further that in no event shall a
period of Enforced Delay exceed ninety (90) calendar days.
11. TERMINATION: This Agreement may be terminated by either Party
for any reason upon one hundred twenty (120) calendar days written notice. If
this Agreement is terminated, City shall be reimbursed from Consultant the
amount paid for any undelivered and/or unaccepted products or services. City
shall pay Consultant for completed and acceptable work performed pursuant to
this Agreement prior to the date of termination.
12. INDEMNIFICATION: To the fullest extent permitted by law,
Consultant 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
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Consultant, its agents, employees, or any tier of Consultant's subcontractors in
the performance of the Services under this Agreement, but only to the extent
caused by the negligence, recklessness or intentional wrongful conduct of
Consultant or its subcontractors in the performance of the Services or any
subcontract. Consultant'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
Consultant's acts, errors, mistakes, omissions, work or services in the
performance of this Agreement, including any employee of Consultant, any tier of
Consultant's subcontractor, or any other person for whose acts, errors,
mistakes, omissions, work or services Consultant may be legally liable, but only
to the extent caused by the negligence, recklessness, or intentional wrongful
conduct of Consultant or any tier of Consultant's subcontractors, or any other
person for whose acts, errors, mistakes, omissions, work or services Consultant
may be legally liable in the performance of the Services 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 termination of this Agreement.
13. TAXES: Consultant shall pay as they become due all license, sales,
consumer, transaction privilege, use, and other similar taxes for services
provided by Consultant which are legally enacted at the time the obligations
under this Agreement are performed.
14. PERMITS AND FEES: Unless otherwise provided in this Agreement,
Consultant shall secure and pay for all applicable permits, government fees,
licenses, and inspections necessary for the proper execution and completion of
services which are customarily secured after execution of the Agreement.
Consultant 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 Services. Consultant represents and warrants that any license necessary
to perform the Services is current and valid. Consultant understands that the
activity described in this Agreement constitutes "doing business in the City of
Apache Junction" and Consultant agrees to obtain a business license pursuant to
Chapter 8 of the Apache Junction City Code, Vol. I, and keep such license current
during the Term. Consultant 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 all
applicable laws. Any activity by Consultant's consultants and subcontractors
within the corporate city limits will invoke the same sales tax and business
licensing regulations on the consultants and subcontractors, and Consultant shall
require and ensure its consultants and subcontractors obtain and keep all
applicable licenses current.
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15. RECORDS: Records of Consultant's labor, payroll, and other costs
pertaining to this Agreement shall be kept on a generally recognized accounting
basis and made available to City for inspection on request. Consultant 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.
16. RIGHT OF CITY TO CONTRACT WITH OTHERS: Nothing in this
Agreement shall imply City is obligated to obtain the Services described in this
Agreement only through Consultant.
17. INDEPENDENT CONTRACTOR: City and Consultant agree and
understand that the relationship between both Parties is that of an independent
contractor. As such, Consultant 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 Consultant 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 Consultant.
18. WAIVER OF TERMS AND CONDITIONS: The failure of City or
Consultant to insist in any one or more instances on performance of any of the
terms or conditions of this Agreement or to exercise any right or privilege
contained herein shall not be considered as thereafter waiving such terms,
conditions, rights or privileges, and they shall remain in full force and effect.
19. COMPLIANCE WITH FEDERAL AND STATE LAWS: Consultant
understands and acknowledges the applicability of the American with Disabilities
Act, the Immigration Reform and Control Act of 1986 and the Drug Free
Workplace Act of 1989 to the services performed under this Agreement.
As required by A.R.S. § 41-4401, Consultant hereby warrants its compliance with
all federal immigration laws and regulations that relate to its employees and
A.R.S. § 23-214(A). Consultant further warrants that after hiring an employee,
Consultant will verify the employment eligibility of the employee through the E-
Verify program. If Consultant uses any subcontractors in performance of
services, subcontractors shall warrant their compliance with all federal
immigration laws and regulations that relate to its employees and A.R.S. § 23-
214(A), and subcontractors shall further warrant that after hiring an employee,
such subcontractor verifies the employment eligibility of the employee through
the E-Verify program. A breach of this warranty shall be deemed a material
breach of the Agreement that is subject to penalties up to and including
termination of this Agreement. Consultant is subject to a penalty of$100 per day
for the first violation, $500 per day for the second violation, and $1,000 per day
for the third violation. City at its option may terminate this Agreement after the
third violation. Consultant shall not be deemed in material breach of this
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Agreement if the Consultant 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 consultant,
contractor or subcontractor employee who works under this Agreement to
ensure that the Consultant or subcontractor is complying with the warranty. Any
inspection will be conducted after reasonable notice and at reasonable times. If
state law is amended, the Parties may modify this paragraph consistent with state
law without effectuating an official amendment to this Agreement. Email
notification of the modification would be sufficient notice.
20. ENTIRE AGREEMENT: This Agreement and any attachments
represent the entire agreement between City and Consultant and supersede all
prior negotiations, representations or agreements, either express or implied,
written or oral. It is mutually understood and agreed that no alteration or variation
of the terms and conditions of this Agreement shall be valid unless made in writing
and signed by the Parties. Written and signed amendments shall automatically
become part of this Agreement 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.
21. SEVERABILITY: City and Consultant each believe that the execution,
delivery and performance of this Agreement are in compliance with all applicable
laws. However, in the unlikely event that any provision of this Agreement is
declared void or unenforceable (or is construed as requiring City to do any act in
violation of any applicable laws, including any constitutional provision, law,
regulation, or city code), 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.
22. BINDING EFFECT, ASSIGNMENT AND DELEGATION: City and
Consultant 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, agreements
and obligations contained in this Agreement. Neither Party shall assign the
Agreement or sublet it as a whole or delegate the duties under this Agreement,
without the written consent of the other Party, nor shall Consultant assign any
monies due or to become due to it without the previous written consent of City.
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23. ACCURACY OF WORK: Acceptance of services or work by City shall
not relieve Consultant of the responsibility for subsequent correction of any such
errors and the clarification of any ambiguities. Consultant shall make all
necessary revisions or corrections resulting from errors and omissions on the
part of Consultant without additional compensation.
24. 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.
25. PROHIBITION TO CONTRACT WITH CONSULTANTS 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 Consultants who engage in boycotts of the State of Israel.
Should Consultant 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.
26. PROHIBITED USE OF FORCED LABOR. In accordance with A.R.S. §
35-394, Consultant hereby certifies and agrees that Consultant 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 Consultant becomes aware during the Term that Consultant is not in
compliance with this Section 26, then Consultant shall notify the City within five
(5) business days after becoming aware of such noncompliance. If Consultant
does not provide the City with written certification that Consultant 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.
27. CONFLICTS OF INTEREST: This Agreement is subject to, and may
be terminated by City in accordance with, the provisions of A.R.S. § 38-511.
[Signatures on next page]
10
IN WITNESS WHEREOF, Consultant and City have executed this Agreement
as of the date first set forth above.
CONSULTANT:
APACHE JUNCTION CHAMBER OF
COMMERCE, an Arizona non-profit
corporation
By: Mary Ann Przybylski
Its: President/CEO
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:
R. Joel Stern
City Attorney
11
STATE OF )
) ss.
COUNTY OF )
The foregoing was subscribed and sworn to before me this day
of , 20 , by as of Apache
Junction Chamber of Commerce, an Arizona non-profit corporation
Notary Public
My Commission Expires:
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, Arizona, an Arizona municipal corporation.
Notary Public
My Commission Expires:
12
EXHIBIT A
SCOPE OF WORK
The services to be provided to City shall include the following:
1. Operate a Visitor Information center ("Center") as approved and under
the guidelines of the Arizona Office of Tourism ("AOT") as part of the
Arizona Visitor Information Center ("AVIC") Designation Program (see
Exhibit C).
2. Submit timely quarterly reports consistent with the customary reports
established by the AOT AVIC program and a summarized expense report
of direct costs associated with operating the Center. Detailed receipts for
any of the expenditures may be requested by City and shall be produced
by Consultant within ten (10) working days from receipt of such request.
3. Special projects clause: If special needs or opportunities arise related to
enhancing visitor services beyond AVID requirements that Consultant
would like City to consider supporting, those requests may be presented
for consideration separately from this Agreement. There are no
guarantees, expressed or implied, that any such request would be
approved or funded by City.
EXHIBIT B
FEE SCHEDULE
In accordance with the terms and conditions of this Agreement, City shall
compensate Consultant for its professional services as follows:
A. Within ten (10) City working days following the last day of each fiscal
quarter, Consultant shall submit to City's Economic Development
Department reports established by the AOT Guidelines and a summarized
expense report of direct costs associated with operating the Center.
B. An aggregate sum:
a. 1st Quarter FY 2026/2027, $15,184.00, subject to Council
appropriation of funds.
b. 2nd Quarter FY 2026/2027, $15,184.00, subject to Council
appropriation of funds.
c. 3rd Quarter FY 2026/2027, $15,184.00, subject to Council
appropriation of funds.
d. 4th Quarter FY 2026/2027, $15,184.00, subject to Council
appropriation of funds.
e. 1st Quarter FY 2027/2028, $15,791.50, subject to Council
appropriation of funds.
f. 2nd Quarter FY 2027/2028, $15,791.50, subject to Council
appropriation of funds.
g. 3rd Quarter FY 2027/2028, $15,791.50, subject to Council
appropriation of funds.
h. 4th Quarter FY 2027/2028, $15,791.50, subject to Council
appropriation of funds.
i. 1 st Quarter FY 2028/2029, $16,423.00, subject to Council
appropriation of funds.
j. 2nd Quarter FY 2028/2029, $16,423.00, subject to Council
appropriation of funds.
k. 3rd Quarter FY 2028/2029, $16,423.00, subject to Council
appropriation of funds.
I. 4th Quarter FY 2028/2029, $16,423.00, subject to Council
appropriation of funds.
EXTENSIONS
m. 1st Quarter FY 2029/2030, $17,080.00, subject to Council
appropriation of funds.
n. 2nd Quarter FY 2029/2030, $17,080.00, subject to Council
appropriation of funds.
o. 3rd Quarter FY 2029/2030, $17,080.00, subject to Council
appropriation of funds.
p. 4th Quarter FY 2029/2030, $17,080.00, subject to Council
appropriation of funds.
q. 1st Quarter FY 2030/2031, $17,763.00, subject to Council
appropriation of funds.
r. 2nd Quarter FY 2030/2031, $17,763.00, subject to Council
appropriation of funds.
s. 3rd Quarter FY 2030/2031, $17,763.00, subject to Council
appropriation of funds.
t. 4th Quarter FY 2030/2031, $17,763.00, subject to Council
appropriation of funds.
C. Notwithstanding the fee arrangements outlined above, City reserves the
right to quarterly review Consultant's performance as relates to the
Scope of Work delineated in Exhibit A of this agreement.
EXHIBIT C
AkR1Z,^11h,-- NA
VISITOR INFORMATION CENTER
Arizona Visitor Information Center (AVIC) Designation Program
The Arizona Office of Tourism's (AOT) Arizona Visitor Information Center Designation program
was created by AOT, in reference to A.R.S. 41-2305 B8, with the defined purpose of establishing
a network of officially designated Arizona Visitor Information Centers (AVICs) throughout the state
of Arizona.
Primarily operated by local chambers of commerce or convention and visitor bureaus,
designated AVICs help promote local Arizona communities as well as regional and statewide
attractions, destinations, dining options, and hospitality amenities. These information centers
often serve as a visitor's first stop, allowing communities to provide a positive first impression of
the surrounding area and Arizona.
Applicants choosing to participate in the program must accept the conditions and guidelines set
forth by AOT. AOT will inform participants of any program updates or changes.
Conditions and Guidelines for Obtaining an Official Arizona Visitor
Information Center Designation
1. The Designee shall pay a one-time application fee of$250 and an annual $100 renewal
fee. The $250 fee shall be payable in one lump sum upon the approval date of the
official designation of the Arizona Visitor Information Center (AVIC). The $100 fee shall
be payable in one lump sum on the renewal date of the designated center. Note that if
an entity is currently part of AOT's Rural Cooperative Marketing Program, the AVIC
one-time application fee is $125. The fees shall compensate AOT for costs incurred by
the production of program material for the designated center. Late payments may cause
the Designee to be excluded from AOT marketing publications and other promotional
materials.
2. Once approved, AOT will facilitate a meeting between the Designee and the Arizona
Department of Transportation (ADOT) for the construction and placement of local and
state street/highway sign(s), such as the blue "Arizona Tourism Information" directional
highway signs. The Designee shall provide clear directional highway and street signage
to promote the location of the visitor center. Standards for such signs must comply with
those established by ADOT. It is the responsibility of the Designee to maintain the
general appearance of the sign and ensure that graffiti is removed and repairs are made
to the sign. Those that are not repairable must be replaced. Highway signage shall be
covered until the Designee has met all criteria, passed the initial inspection, received
approval from AOT and opened.
ARIZOkM
VISITOR INFORMATION CENTER
3. The Designee shall not receive operational and/or marketing funds from the State of
Arizona or AOT for the designated AVIC.
4. The Designee shall make an effort to operate with the support, and preferably the
involvement, of the area's principal Destination Marketing Organization (DMO).
5. Any change to the Designee's management or their contact information must be
submitted to AOT, in writing within thirty (30) calendar days of the date of the change.
Any change in ownership of the facility must be submitted to AOT no less than ninety
(90) calendar days in advance of the change. AOT reserves the right to refuse the official
designation if new facility management does not comply with AOT's AVIC program
conditions and guidelines.
6. The Designee shall be operated from a permanent structure of attractive architectural
design at the address provided on the Designee Application. The center shall have no
less than 500 square feet of public area unless otherwise approved in writing by AOT.
An information kiosk, walk-up facility or other similar structures are not considered
Official Arizona Local Visitor Information Centers unless approved in writing by AOT.
7. The Designee shall maintain attractively landscaped and clean grounds.
8. The Designee shall not include real estate and time-share sales, telemarketing and other
high-pressure sales ventures. Involvement in such ventures shall result in termination of
the official designation.
ARIZOkM
VISITOR INFORMATION CENTER
9. The Designee may sell books, souvenirs, cards, gifts, maps, apparel or other
merchandise of value and relevance to travelers, so long as merchandise is of good
taste and of competitive price to goods sold near the facility.
10. All Designees must be compliant with the Americans with Disabilities Act (ADA) and are
subject to all federal laws pertaining to the ADA's most current requirements
(www.ada.gov). If the designated center qualifies for ADA's historic building exceptions,
the Designee must notify AOT during the application process. Any exceptions to ADA
compliance must be approved in advance by AOT.
11. The Designee shall have adequate restroom facilities available for public use, including
people with disabilities. The restrooms shall be ADA-compliant and must be properly
maintained. If the designated center qualifies for ADA's historic building exceptions, the
Designee must notify AOT during the application process. Any exceptions to ADA
compliance must be approved in advance by AOT.
12. Except for the Thanksgiving, Christmas Day and New Year's Day holidays, the Designee
shall be open a minimum of four days a week. Each center must be open and staffed a
minimum of 30 hours per week. Hours of operation will be determined by Designee.
Hours of operation must be clearly posted. Any exceptions or changes to these hours of
operation must be approved in advance by AOT.
13. The Designee shall have available adequate parking with facilities for bus, recreational
and other oversized vehicles when possible. A minimum of five-paved parking spaces
must be available for visitors' usage, with at least one parking space designated
"Wheelchair Accessible". If your parking lot has more than 26 parking spaces, ADA
requirements change and must be met. (www.ada.gov). Any exception to ADA
compliance must be approved in advance by AOT.
14. The Designee shall display marketing material signifying that they are an Official Arizona
Local Visitor Information Center. The marketing material shall be prominently displayed
on the interior and/or exterior of the designated center. AOT will provide the following
marketing material: one (1) laminated Arizona state map, dry-erase markers and
ARIZOkM
VISITOR INFORMATION CENTER
erasers, and two (2) identifying window placards. The cost of the marketing material is
incorporated into the application fee.
15. The Designee shall display local, state, tribal or federal governmental tourism
information, including those produced by AOT, at no cost to the governmental entities.
AOT publications will be furnished to the designated center once it has received official
designation. Publications will include, but are not limited to, the Official State Travel
Guide and the Official State Visitor's Map. Should other publications become available
through AOT, all designated centers will be notified. Publications will be disseminated
based upon supply and demand.
16. The Designess shall promote all regional tourism related activities and attractions in the
surrounding area not just those related to the designee's business.
17. The Designee's personnel shall be trained about Arizona tourism and statewide
destinations under guidelines recommended by AOT. AOT shall assist by providing
training to the Designee's management, who shall ensure the center's staff is similarly
trained.
18. The Designee shall be provided four (4) Arizona Tourism Branded shirts for the
designated center's personnel to wear when possible and two (2) Arizona Tourism
Branded hats. Cost of the apparel is incorporated into the application fee. The Designee
may purchase additional shirts or hats if wanted.
19. The Designee shall provide general Arizona tourist information within the designated
center. Displays must include information about traveling within the immediate region, as
well as throughout Arizona, and must include state maps, regional maps and brochures,
about Arizona travel destinations. The displayed information should equally represent
the state in its entirety. Topics for displayed information should include, but not be limited
to, attractions, recreation, accommodations, restaurants, retail, transportation and travel
ARIZO14A
VISITOR INFORMATION CENTER
services. No more than ten percent (10%) of the total literature offered may represent
non-Arizona entities.
20. Each center must display a large (24" X 30") laminated state map, provided by AOT.
Cost is incorporated into a one-time application fee.
21. The Designee shall maintain and report information monthly to AOT including, but not
limited to, statistics regarding the number of visitors to the designated center. These
monthly visitor numbers shall be submitted to AOT by the 1 st business day of the
following month. Failure to report this information in a timely manner may result in the
exclusion of the designated center in AOT's marketing programs, projects and state
tourism publications.
22. The Designee shall be highlighted on AOT's consumer website, VisitArizona.com, Visit
Arizona App, the Official State Travel Guide, travel maps and other Arizona Tourism
related publications maintained and issued by AOT. The Designee must provide
reciprocal promotion of the Visit Arizona website (VisitArizona.com) in advertising,
promotional activities, related collateral, on its website and on the physical premises.
23. AOT shall conduct inspections of the designated center, both announced and
unannounced. Failure to pass an inspection may result in an additional inspection.
Failure to pass a second inspection in a year may result in loss of all program specific
benefits (website listing, state travel guide listings, Visit Arizona listing). Designee will be
placed on a 60-day probation to fix issues noted in the inspection. Failure to fix issues
will result in the loss of designation as an Official Arizona Local Visitor Information
Center. If designation is revoked, the Designee must reapply to AOT for reconsideration
after six months.
24. Any variation from this plan not approved by AOT shall make the Designation null and
void.
ARIZOkM
VISITOR INFORMATION CENTER
For questions or more information about the Arizona Visitor Information Center program, please
contact Jenna Lehman, Sr. Community Relations Manager, at 602-364-4158 or via email at
jlehman@tourism.az.gov.
Presentation and Discussion on Professional
Services Agreement for Operation of a Local
Visitor Information Center
Economic Development Department
VISITOR CENTER BACKGROUND
• Promote local attractions, community events, dining & shopping options, lodging, and amenities
• Sell merchandise/art from local businesses
• Primarily operated by local chambers of commerce or visitor bureaus
• A "one stop shop" for out-of-town visitors to provide a positive, first impression of the area
• City has contracted with Apache Junction Area Chamber of Commerce since 1988
CURRENT OPERATIONS
• Operates out of Chamber facility in downtown
• 9 volunteers
• Accredited through Arizona Visitor Information Center (AVIC) Designation Program
• Operation requirements, reporting, inspections, training
• Receives exposure on official Visit Arizona publications
• Positive performance reviews
• One of the top-visited centers in the AVIC Program
• 4.6/5 on Google (61 reviews), 4.7/5 on Tripadvisor (43 reviews)
SERVICE AGREEMENT
• Current contract ends June 30t'', 2026, with $58,400 as the amount due for this fiscal year
• Similar to the current contract, proposed terms are a three-year agreement with options for
two, one-year extensions, and 4% annual increases:
• FY 26/27: $60.9736,00
• FY 27/28: $63pl66,00
• FY 28/29: $65p692,00
Extension Options:
• FY 29/30: $68.9320.,00
• FY 30/31: $71.9052.,00
• Staff recommends continuing to contract for visitor center services with the Chamber
• Anticipated to be on consent agenda for June 16 1h City Council Meeting
FISCAL COMPARISON
• Estimated annual cost if City operated a Visitor Center, assuming 2 employees and 2,000 SF space = $1719596
• All-in cost of an employee with a $45.,OW salary = $61,978 x 2 employees = $1239596
• Annual market office rent in Apache Junction = $2AISF x 2,000 SF = $48,000
• Proposed contract amount with Chamber FY 26/27 = $60,736
APACHE
UNCTION AREA '
CHAMBER OF COMMERCE '
Apache Junction Area
Chamber of Commerce
and Visitor Center
f
`
-,art w
._�. 100
Serves visitors, residents, and businesses
Visitor Center
Overview 0
Hub for tourism and relocation information
0 Connector to local businesses and events
APACHE
f
� UNCTION AREA
CHAMBER OF COMMERCE
Mot/
Partnership with the City of Apache Junction
• Longstanding partnership with the City
• Operates under contract to provide services
• Supports City goals: Tourism, Economic Development, Community
Engagement
Key Accomplishments
• 9, 604 annual visitors served in 2025
• Increased community engagement
• Expanded programs and outreach
— • Enhanced visibility of local businesses
• Officially designated Arizona Visitor
Information Center (AVIC) for AOT
4
ARIZnNA
OFFICE OF TOURISM
To:City of Apache Junction
From:Jenna Lehman,Sr.Community Affairs Manager
Date:April 9,2026
RE:Arizona Visitor Information Center Program
This letter is to confirm that Apache Junction Area Chamber of Commerce and Visitor
Center is currently in good standing in Arizona Office of Tourism's(ACT)Arizona Visitor
Information Center(AVIC)program.
The Apache Junction Area Chamber of Commerce and Visitor Center has been
involved in the AVIC program for the last few years and their performance,conduct,and
compliance with program requirements have met and exceeded our standards.The
most recent on-site inspection occurred on September 9th,2025 and there were no
concerns or corrective actions required.
AOT values Apache Junction Area Chamber of Commerce and Visitor Center
partnership and dedication in promoting Arizona to travelers near and far.
Sincerely,
15��
Jenna Lehman
Sr.Community Affairs Manager
1110 W.Washington St.,Suite 155,Phoenix,AZ 85007 ♦ [P]602.364.3700 IF]602.364.3702
Katie Hobbs,Governor ♦ Alix Skelpsa-Ridgway,Director
5 Business-Tourism.az.gov ♦ Travel Information-VisitArizona.com
2025 Total Visitors
Arizona : 3 , 699
Out-of-State : 5 , 193
a
Foreign Visitors : 712 _
TOTAL : 9 , 6 0 4
yIAPACHE
JUNCTION AREA
2025 OutmofmState Visl* tors
WASHINGTON
237 3
MONTANA NORTH DAKOTA MAINE
OREGON 99 308
9 1 MINNESOTA VT
IDAHO
96 SOUTH DAKOTA 1323 WISCONSIN 45 4
3 MASS
WYOMING 244 � 03 7 NEW YORK MICHIGAN CONN RI 0 69
NEVADA IOWA PENNSYLVANIA JNEW
ERSEY 10
COLORADO
NEBRASKA 5 04 8 7 58
16 UTAH 31 OHIO DELAWARE8
ILLINOIS INDIANA 92 DC
CALIFORNIA 36 211 VWEST IRGINA 0 MARYLAND 1 6
74 179 KANSAS 2 7
31 MISSOURI � VIRGINIA
107 KENTUCKY
NORTH CAROLINA
ARIZONA TENNESSEE 1 7
7
NEW MEXICO OKLAHOMA
��
1 ARKANSAS SOUTH
15 CAROLINA
15 3 2
LOUISIANA
2 ALABAMA GEORGIA
13
TEXAS MISSISSIPPI
28 26 2
� ALASKA a Q
27 APACHE
b pC� FLORIDA
, HAWAII UNCTION AREA
a�o o o II
e_o�ooO�° 1i CHAMBER OF COMMERCE
00 lll��7
2025 Forei* gn Visi* tors
Belgium 2 Mexico 3
Canada 681 Netherlands 5
England 4 Scotland 2
France 2 Sweden 2
Germany 5 Switzerland 2
Japan 4 Ukraine 2
Laos 1
APACHE
UNCTION AREA
CHAMBER OF COMMERCE
APACHE 2024 vs 202 -9 Visl" tr Counts
UNCTION AREA x
CHAMBER OF COMMERCE
In-State Counts Out-of-State Counts Foreign Counts Total Counts
2024 2025 2024 2025 2024 2025 2024 2025
January 419 432 1522 1403 238 207 2179 2042
February 807 828 1296 1488 231 231 2334 2547
March 216 222 653 590 138 88 1007 900
April 196 144 191 171 33 16 420 331
May 233 310 44 35 6 16 283 361
June 224 215 6 12 0 0 230 227
July 177 226 16 22 6 4 199 252
Au ust 253 265 12 8 0 2 265 275
September 245 247 32 22 7 10 284 279
October 302 293 194 235 27 22 523 550
November 248 291 564 540 98 69 910 900
December 165 226 518 667 92 47 775 940
Total:j 3485 3699 5048 5193 876 712 9409 9604
Economic Impact
• Referral to local businesses daily
• Support of local events and festivals
• Drives visitor spending into the community
• Supports small business growth
10
Programs & Services
• Visitor assistance & relocation information
• Business referrals & promotions
• Event support and coordination
• Volunteer engagement
S COV E R
Marketing & Promotion
2026 OFFICIAL GUIDf
BUSINESS,VACATION,AND RELOCATION Welbsite
. • digital
• , engagement
Social media promotion
r✓
Discover Magazine and visitor
g 'des
�+�► r
Regional partnerships
12
Business
k
EAST MESA APACHE JUNCTION GOLD CANYON
Directory
Operational Efficiency
• Lean staffing model
• Strong volunteer support
• Cost-effective service delivery
• Chamber resources leveraged
13
Looking Ahead
• Expanded outreach and engagement
1 r
• Enhanced visitor experience
• Increase business promotion
• Continued alignment with City goals
14
Visitor Center Refresh
• Updated and modernized space
• Improved visitor experience
• Enhanced display of local businesses and materials
• More welcoming and functional environment
• Coordinated with the Arizona Officer of Tourism the
temporary closure of the visitor center for the refresh
15
Contract Overview
z � r
• Continuation of current services
• Proven partnership model y'
• Consistent value to the City
J.
7-7
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■
Apache Junction Area
Chamber of Commerce
and Visitor Center
Thank
you
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No.2.
'Piz File ID: 26-259
Sponsor: Michael Pooley Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion of Resolution No. 26-25 authorizing an intergovernmental for
cooperative law enforcement training operations with the City of Mesa.
City of Apache Junction,Arizona Page 1 Printed on 512812026
'� Apache Junction Police Department
°' Memorandum
Date: May 5, 2026
To: Mayor and City Council
From: Commander Michael Beaton
Subject: Resolution No. 26-25 authorizing an IGA for cooperative law enforcement
training operations.
Attached for your consideration is an Intergovernmental Agreement ("IGA") between
the City of Mesa and the City of Apache Junction for cooperative law enforcement
training operations. This agreement will allow both agencies to participate in a joint
law enforcement activity including driving, firearms training, force/defensive tactics,
and other related law enforcement exercises.
Approval of this agreement will provide Apache Junction Police Department personnel
with greater access to regional training opportunities and specialized facilities, while
strengthening the partnership with the Mesa Police Department. The IGA is voluntary
in nature and does not obligate either agency to provide or attend any specific
training.
The IGA will remain in effect through May 3, 2027, unless extended by mutual written
agreement, and may be terminated by either party with 30 days' written notice.
It is recommended the council approve Resolution No. 26-25 which authorizes the
mayor to execute the IGA.
RESOLUTION NO. 26-25
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY OF
APACHE JUNCTION, ARIZONA THROUGH ITS POLICE DEPARTMENT
TO ENTER AN INTERGOVERNMENTAL AGREEMENT ("IGA") WITH
THE CITY OF MESA, ARIZONA FOR COOPERATIVE LAW
ENFORCEMENT TRAINING OPERATIONS.
WHEREAS, the cities of Apache Junction and Mesa (the
"Parties") are authorized pursuant to A. R. S . § 11-951, et seg. ,
to enter into agreements to carry out public agency services;
and
WHEREAS, the Parties desire to enter into an
intergovernmental agreement ("IGA") for the purpose of
conducting joint law enforcement training; and
WHEREAS, the attached IGA sets forth the obligations under
the IGA.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, RESOLVE AS FOLLOWS:
1) The mayor and city council authorize the mayor to
execute a duplicate copy of the attached IGA ("Attachment A")
for joint training operations .
2) The mayor and city council hereby further authorize
the police chief or his designee to take all actions necessary
to effectuate the purpose of the IGA.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS DAY OF , 2026.
SIGNED AND ATTESTED TO THIS DAY OF 2026.
WALTER "CHIP" WILSON
Mayor
ATTEST:
YVETTE MCKINNEY
City Clerk
RESOLUTION NO. 26-25
PAGE 1 OF 2
APPROVED AS TO FORM:
RICHARD J. STERN
City Attorney
RESOLUTION NO. 26-25
PAGE 2 OF 2
ATTACHMENT A
INTERGOVERNMENTAL AGREEMENT FOR COOPERATIVE LAW
ENFORCEMENT TRAINING OPERATIONS BETWEEN THE CITY OF MESA AND
THE CITY OF APACHE JUNCTION
City of Mesa Contract No.:
DO NOT REMOVE
THIS IS PART OF THE OFFICIAL DOCUMENT
{00599077.11 1
INTERGOVERNMENTAL AGREEMENT FOR COOPERATIVE LAW
ENFORCEMENT TRAINING OPERATIONS BETWEEN THE CITY OF MESA AND
THE CITY OF APACHE JUNCTION
THIS AGREEMENT("Agreement")is entered into as of the_day of 22026
("Effective Date") between CITY OF MESA("City"), an Arizona municipal corporation,
and CITY OF APACHE JUNCTION ("City"), an Arizona municipal corporation,
collectively known herein as the"Parties" and each individually as "Party."
RECITALS
The Parties are authorized pursuant to A.R.S. §§ 11-951, et seq., and the respective
provisions of their applicable City laws and related code and ordinances to enter into
agreements to carry out public agency services. Additionally, the Parties all perform the
function of law enforcement within their respective jurisdictions. Moreover, the Parties
have a need for cooperative law enforcement training operations between their respective
jurisdictions.
Therefore,in consideration of the mutual promises and obligations set forth herein, and for
good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged,the Parties agree as follows.
AGREEMENT
I. Purpose of the Agreement:
The Parties desire to enter into this Agreement for the purpose of conducting joint law
enforcement training (specifically, driver's training, firearms training, use of
force/defensive tactics related training, and other related law enforcement training)
attended by designated sworn law enforcement personnel.
II. Duration, Renewal and Termination:
This Agreement shall become effective on the date it is adopted by the Parties and shall
terminate May 3, 2027, unless otherwise extended. This Agreement may be extended for
two (2) additional two (2) year terms upon written agreement of the Parties. This
Agreement may be terminated by either Party, with or without cause, upon thirty (30)
calendar days'written notice to the other Party.
III. Definitions:
Host Agency: The Party sponsoring or conducting training at its facilities.
Non-Host Agency: The Party whose employees will attend training at or conducted by the
Host Agency.
f00599077.11 2
IV. Availability of training:
This Agreement allows, pursuant to its terms, either Party to participate in training of the
Host Agency; nothing in this Agreement requires either Party to provide training or to
participate in training.
V. Financial Responsibilities; Equipment and Assistance with Training:
Host Agency is responsible for the costs associated with the training except that the Host
Agency shall specify the required equipment and materials needed for the Non-Host
Agency employees to participate in the training and the Non-Host Agency agrees to
provide, at its sole cost and expense, such equipment and materials to its employee(s)as a
condition of participating in training. All equipment and materials purchased by a Party
shall remain the property of that purchasing Party. However, this provision shall not be
construed to prohibit any use of materials or equipment of another Party that is merely
nominal and incidental, or on an emergency basis.
In the event that a Host Agency requires a fee to participate in its training,the Parties shall
agree upon a reasonable fee that the Non-Host Agency shall pay to the Host Agency for
training that falls within this Agreement. Any such agreement providing for participation
fee(s) shall be in writing and is subject to the approval of each Party's governing body, or
the governing body's delegee when authorized. In establishing the fee, the Parties may
consider the nature and duration of the training; additional expenses associated with
participation by the Non-Host Agency; non-monetary contributions by the Non-Host
Agency in facilities, personnel or equipment, and; the experience, value and goodwill
inherent in the Parties training together. The Chief of Police or Sheriff of the Host Agency
has the discretion to waive fees, in whole or in part,for the Non-Host Agency when it is in
the best interest of the Host Agency.
VI. Training Records:
The Host Agency will maintain records of lesson plans, class and attendance rosters, and
other training documentation in accordance with Arizona law. The Host Agency will
provide a copy of such training records related to Non-Host Agency employees to the Non-
Host Agency upon request.
VIT. Agreement to Hold Harmless:
To the maximum extent permitted by law, each Party (as "Indemnitor") agrees to
indemnify, defend and hold harmless the other Party, its officers, officials, agents,
employees, or volunteers from and against any and all claims, losses, liability, costs, or
expenses (including reasonable attorney's fees) (hereinafter collectively referred to as
"Claims") arising out of actions taken in performance of this IGA to the extent that such
Claims are caused by the acts, omissions, negligence, misconduct, or other fault of the
Indemnitor, its officers, officials, agents, employees, or volunteers. The indemnifying
Party's obligations under this paragraph shall not extend to any Claims to the extent caused
(00599077.1) 3
by the negligence or misconduct of the other Parry. If a Claim or Claims by third parties
becomes subject to this section,the governmental parties to this IGA that are the subject of
the Claim or Claims shall cooperate to the maximum extent possible.
The obligations under this Section shall survive the termination and/or expiration of this
Agreement.
VIII. Insurance:
Each Party shall obtain and maintain at its own expense, during the entire term of such
Party's participation in this IGA,the following type(s) and amounts of insurance:
Commercial General Liability in the amount of at least$2,000,000 Combined Single Limit
per occurrence.
Comprehensive Automobile liability coverage for owned, non-owned and hired vehicles
used in the performance of this IGA with limits in the amount of at least $2,000,000.00
combined single limit per occurrence.
Worker's Compensation coverage, including employees' liability coverage, as required by
law.
Either Party may satisfy the requirements of this Section with proof of self-insurance.
IX. Notices:
All notices or other correspondence between the Parties regarding this Agreement shall be
in writing and mailed or delivered to the respective Parties as follows. The date of mailing
shall serve as the date of receipt for the purposes of required advance notice(s) provided
for under this Agreement.
If to City of Mesa: Scott Butler, City Manager
City of Mesa
20 East Main Street
Mesa,AZ 85201
With a copy to: Jim Smith, City Attorney
City of Mesa
20 East Main Street
If to City of Apache Junction: Chief Michael Pooley
City of Apache Junction
300 E Superstition Blvd
Apache Junction,AZ 85119
f00599077.11 4
With a copy to: R. Joel Stern
City Attorney
300 E. Superstition Blvd
Apache Junction,AZ 85119
X. Other Duties Imposed by Law:
Nothing in this Agreement shall be construed as relieving either Party of any obligation or
responsibility imposed on it by law.
XI. Waiver of Terms and Conditions:
The failure of either Party to insist in any one or more instances on performance of any of
the terms or conditions of this Agreement, or to exercise any right or privilege contained
herein, shall not be considered as thereafter waiving such terms, conditions, rights, or
privileges, and they shall remain in full force and effect.
XII. Conflict of Interest:
This Agreement is subject to cancellation pursuant to A.R.S. § 38-511.
XIII. Compliance with Laws and Policies:
The Parties shall comply with all federal, state, local laws, rules, regulations, standards,
and Executive Orders applicable to this Agreement and the duties of the Parties herein,
including, without limitation those designated within this Agreement. The laws and
regulations of the State of Arizona shall govern the rights of the Parties, the performance
of this Agreement, and any disputes hereunder. Furthermore, the Parties agree to abide by
each Parry's policies to the extent appropriate and required or permitted by law.
XIV. Employment Status and Compensation of Law Enforcement Officers:
The Parties acknowledge that under this Agreement that no employee or participant of one
Party is to be considered an employee of the other Party for any purpose whatsoever, and
that no rights of a Party's merit, retirement, personnel rules, or other benefit provided to
that Party's employees shall accrue to the other Party's employees. Each Party shall, at its
sole cost and expense, be solely and exclusively the responsibility for all salaries, wages,
bonuses, retirement, withholdings, workman's compensation, occupational disease
compensation, unemployment compensation, and other employee benefits, as well as all
taxes and premiums appurtenant thereto, concerning their respective employees and each
Party shall defend, indemnify, save and hold harmless the other Party with respect thereto.
Employees of a Party shall remain under the direction and control of the Party that is its
employer. The Parties shall each provide workers' compensation insurance in accordance
with applicable law, as well as salary, benefits, appropriate equipment, and uniforms for
their respective employees. Except as otherwise provided by law, specifically A.R.S. § 23-
1022(D), in the performance of this Agreement, each Party hereto will be acting in its
f 00599077.1) 5
individual governmental capacity and not as an agent, employee, partner,joint venture or
associate of the other. The employees. agents. or subcontractors of one Party shall not be
deemed or construed to be the employees or agents of the other Party.
XV. Workers'Compensation/Posting:
Pursuant to A.R.S. § 23-1022(D), for the purposes of workers' compensation coverage, all
employee participants of each respective Party shall be deemed to be an employee of their
respective Party. Each Party shall be solely liable for payment of workers• compensation
benefits for its own employees. The Parties agree to each provide any posting and notice
to the employees, as required A.R.S. § 23-1022(E) or otherwise provided by law.
XVI. Compliance with Civil Rights:
The Parties to this Agreement agree to comply with the applicable provisions of A.R.S.
Title 41, Chapter 9 (Civil Rights). Arizona Executive Order 2009-09,Arizona Executive
Order 2023-01 and any other federal or state laws relating to equal opportunity and
non-discrimination, including the Americans with Disabilities Act. No Party shall engage
in any form of illegal discrimination with respect to applications for employment or student
status or employees or students.
XVII. Compliance with the E-VERIFY Program:
To the extent provisions or A.R.S. § 41-4401 an: applicable, each Party warrants to the
other Party that they will comply with all Federal Immigration laws and regulations that
relate to their employees and that each now complies with the E-Verify Program under
A.R.S. § 23-214(A).A breach or this warranty will be considered a material breach of this
Agreement and may subject the breaching party to penalties up to and including
termination of this Agreement.The Parties retain the legal right to inspect the papers of any
employee who works pursuant to this Agreement, or any related subcontract, to ensure
compliance with the warranty given above.Either Party may conduct a random verification
of the employment records of the other Party to ensure compliance with this warranty. A
Party will not be considered in material breach of this Agreement if it establishes that it has
complied with the employment verification provisions prescribed by § U.S.C. 1324(a) and
(b) of the Federal Immigration and Nationality Act and the E-Verify requirements
prescribed by A.R.S. § 23-214(A).
The provisions of this Article must be included in any contract either Party enters into with
any and all of its contractors or subcontractors who provide services under this Agreement.
XVIII.No Joint Venture:
It is not intended by this Agreement to. and nothing contained in this Agreement shall, be
construed to create any partnership.joint venture. or employment relationship between the
Parties or create any employer-employee relationship between the Parties' employees.
Neither Party shall be liable for any debts, accounts, obligations, or other liabilities
{00599077.1 1 6
whatsoever of the other Party including,but without limitation,the other Party`s obligation
to withhold Social Security and income taxes for itself or any of its employees.
Each Party shall act in its individual capacity and not as an agent, employee, partner,joint
venturer, associate, or any other representative capacity of the other parry. Each Party shall
be solely and entirely responsible for its acts or acts of its agents and employees during the
performance of this Agreement.This Agreement shall not be construed to imply authority-
to perform any tasks, or accept any responsibility, not expressly set forth herein. This
Agreement shall be strictly construed against the creation of a duty or responsibility unless
the intention to do so is clearly and unambiguously set forth herein. Nothing contained in
this Agreement confers any right to any person or entity not a party to this Agreement.
XIX. No Third-Party Beneficiaries:
Nothing in this Agreement is intended to create duties or obligations to or rights in third
parties who are not the named Parties to this Agreement or affect the legal liability of either
Party to the Agreement by imposing any standard of care with respect to the maintenance
of public facilities different from the standard of care imposed by law.
XX. Non-Assignment:
Neither Party shall assign its interest in this Agreement, either in whole or in part.
XXI. Severability:
If any part,term, or provision of this Agreement shall be held illegal, unenforceable, or in
conflict with any law,the validity of the remaining portions and provisions hereof shall not
be affected.
XXII. Governing Law,Dispute Resolution, and Jurisdiction:
The laws of the State of Arizona govern this Agreement. Venue will be in a court of
competent jurisdiction in Maricopa County.The Parties agree to resolve all disputes arising
out of or relating to this Agreement through arbitration, after exhausting applicable
administrative review,pursuant to A.R.S. § 12-1518(A),except as may be required by other
applicable statutes.
XX1II.Entire Agreement:
This Agreement represents the entire agreement between the Parties and supersedes all
prior negotiations, representations, or agreements, either expressed 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.
XXIV.Amendment:
100599077.11 7
This Agreement may not be modified, except by written amendment, duly executed by
both Parties.
XXV. Counterparts:
This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute the same instrument. Faxed,
copied, electronic and scanned signatures are acceptable as original signatures.
XXVI.Israel Boycott Provision; Uyghurs Boycott Provision:
Each Party certifies to the other Party that it is not currently engaged in and agrees for
the duration of This IGA not to engage in a boycott of Israel as defined in A.R.S. § 35-
393. Each Party agrees to comply with all of its obligations under A.R.S. § 35-394,and
hereby certifies that it does not currently, and agrees for the duration of This IGA that
it will not,use the forced labor of ethnic Uyghurs in the People's Republic of China,or
any goods or services produced by the forced labor of ethnic Uyghurs in the People's
Republic of China, or any contractors, subcontractors or suppliers that use the forced
labor or any goods or services produced by the forced labor of ethnic Uyghurs in the
People's Republic of China
SIGNATURES ON FOLLOWING PAGE
{00599077.11 8
IN WITNESS WHEROF, the Parties hereto have executed this Agreement as of the day
and year set forth below:
City of Mesa City of Apache Junction
Date: Date:
By: By:
Title: Title:
Attest: Attest:
By: By:
Title: Title:
Pursuant to ARS 11-952 (D) The undersigned attorneys have reviewed this
Intergovernmental Agreement and have determined it is in proper form and within the
powers and authority granted to the Parties under the laws of Arizona.
City of Mesa City of Apache Junction
Jack Vincent R. Joel Stern
Assistant City Attorney City Attorney
{00599077.1} 9
INTERGOVERNMENTAL AGREEMENT FOR COOPERATIVE LAW
ENFORCEMENT TRAINING OPERATIONS BETWEEN THE CITY OF MESA AND
THE CITY OF APACHE JUNCTION
City of Mesa Contract No.:
DO NOT REMOVE
THIS IS PART OF THE OFFICIAL DOCUMENT
f00599077.11 10
MESA-APACHE JUNCTION POLICE TRAINING IGA
JUNE 1, 2026
Cooperative Law Enforcement Training Agreement
Presented by Lieutenant Seth Painter
MESA PD PARTNERSHIP OPPORTUNITY
• Mesa PD operates a dedicated EVOC / driving track. "
• Shared training reduces duplication and operational costs.
• Regional training improves interoperability between agencies.
• Agreement complies with Arizona intergovernmental agreement statutes (A.R.S. §§ 11-951 et seq.).
i
KEY AGREEMENT HIGHLIGHTS
• Cooperative law enforcement training agreement.
• Includes driver training, firearms, and tactical instruction.
• Each agency remains responsible for personnel and equipment.
• Agreement term runs through May 3, 2027 with the option for 2 additional 2 year renewals.
RECOMMENDATION / COUNCIL ACTION
• APPROVE THE INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF MESA
Questions?
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No. 3.
'Piz File ID: 26-280
Sponsor: Jamie Sullivan Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion on the Third Amendment to the Professional Services Agreement
between the City of Apache Junction and Central Arizona Council on Developmental Disabilities
for senior services transportation.
City of Apache Junction,Arizona Page 1 Printed on 512812026
O�PP ACHE✓G��
Z City �o ache Junction
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Home of the Superstition Mountains
Memorandum To: Honorable Mayor and Members of City Council
Memorandum Through: Liz Langenbach, Parks and Recreation Director
Bryant Powell, City Manager
Memorandum From: Jamie Sullivan, Recreation Superintendent
Date: May 21 st, 2026
Subject: Third Amendment to the Professional Service Agreement for Senior
Transportation
On August 1st, 2017, The City of Apache Junction entered into an agreement with Central
Arizona Council On Developmental Disabilities ("CACDD") to provide transportation services to
our senior and disabled populations. Transportation services included: transportation to and
from the MGC for weekday lunch, medical and shopping trips.
This program is funded through Central Area Aging, grants, participant donations and the
general fund.
The notable changes in this amendment are:
• Increase in daily transportation from $240 per day to $275 per day
• Transportation for individual services (medical/shopping) will increase from $8 per mile
to $10 mile and from $25 per hour to $40 per hour. This service is rarely needed.
• Added fee for extended service area-if needed
• Added language and fee to accommodate if a second vehicle is required
With the rising cost of fuel, personnel cost and a broader service area, staff feel this is a fair
adjustment.
This is a vital program providing various transportation options to the senior community. The
partnership with CACDD has been very successful and staff recommend this amendment for
council's approval.
300 E.Superstition Blvd.•APACHE JUNCTION,AZ 85219 9 www.aiciiy.net 9 PHONE(480)983-2181•FAX(480)982-2438•TDD(480)983-0095
AGREEMENT FOR SENIOR TRANSPORTATION SERVICES BETWEEN CITY OF APACHE
JUNCTION AND CENTRAL ARIZONA COUNCIL ON DEVELOPMENTAL DISABILITIES
PROJECT NO. PR-17-03
THIS AGREEMENT made and entered into by and between the CITY OF APACHE
JUNCTION ("City"), an Arizona municipal corporation, and Central Arizona Council on
Developmental Disabilities ("Contractor"), both whom shall collectively be referred to as the
"Parties", or individually as a "Party".
RECITALS
A. Contractor has responded to City's request for proposal via RFP No. PR-17-03,
in which Contractor asserts its willingness, ability and qualifications to provide
this work and service (the "Work").
B. City and Contractor desire to set forth herein their respective responsibilities and
the manner and terms upon which Contractor shall render the services.
C. City has complied with the public bidding requirements under Arizona Revised
Statute Title 34 and Apache Junction City Code, Volume 1, Chapter 3:
Administration, Article 3-7, Procurement Procedure.
AGREEMENT
NOW, THEREFORE, City retains Contractor to perform, and Contractor agrees to
render the services in accordance with the terms and conditions set forth as follows:
1. PROJECT DESCRIPTION: Contractor shall do and perform or cause to be done and
performed in a good workmanlike manner, the Work in accordance with the contract documents
as fully described in the Notice Inviting Bid Proposals for Project No. PR-17-03, as well as
Contractor's response, both of which include all required specifications, a copy of which are on
file with the City's Parks and Recreation Department.
2. PRICES: Prices shall be governed under attached Exhibit A "Transportation Costs", the
Contractor's response to Project No. PR-17-03 for performance of the Work.
3. CONTRACT TERM: The Initial Term of this agreement shall be fromA,2017
to June 30, 2018. Thereafter, this agreement shall automatically be renewed for fdVr adiditional
one-year(1) periods with the final end date of June 30, 2022. The City reserves the right to
unilaterally extend any of the one-year(1) periods by thirty-one (31) days.
4. LABOR AND MATERIALS: Unless otherwise provided in the contract documents,
Contractor shall provide, pay and insure under the requisite laws and regulations for all labor,
transportation, and other related 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. TAXES: Contractor shall pay all license, sales, consumer, use and other similar taxes
1
for the Work or portions thereof provided by contractor 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. Further, Contractor agrees to pay all applicable privilege
and use taxes that are applicable to the Work under the Agreement.
6. PERMITS & FEES: Unless otherwise provided in the contract documents, Contractor
shall secure and pay for all permits, governmental fees, licenses and inspections necessary for
the proper execution and completion of 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. Contractor represents and warrants that any license necessary to
perform the Work under this Agreement is current and valid. Contractor understands that the
activity described herein constitutes "doing business in the City of Apache Junction" and
Contractor agrees to obtain a business license pursuant to Article 8-2 of the Apache Junction
City Code, Vol. I, and keep such license current during the term of this Agreement. Contractor
also acknowledges that the tax provision of the Apache Junction Tax Code, Chapter 8A, may
also apply and if so, shall obtain a privilege license. Any activity by subcontractors within the
corporate city limits will invoke the same business and privilege license regulations on any
subcontractors, and Contractor ensures its subcontractors will obtain any required licenses. If
there are taxable activities, a business license shall be converted to a privilege license by the
Contractor and any subcontractors through the City Clerk's Office.
7. INDEPENDENT CONTRACTOR: Contractor shall at all times during Contractor's
performance of the services retain Contractor's status as an independent Contractor.
Contractor's employees shall under no circumstances be considered or held to be employees or
agents of City, and City shall have no obligation to pay or withhold state or federal taxes, or
provide workers compensation or unemployment insurance for or on behalf of them or
Contractor. Contractor shall supervise and direct the delivery of the materials using its best skill
and attention. Except as provided in this Agreement, Contractor shall be solely responsible for
all means, methods, techniques, sequences and procedures, and for coordinating all portions of
the Work required by the contract documents. Contractor shall be responsibie to City for the
acts and omissions of its employees.
8. INDEMNIFICATION: To the fullest extent permitted by law, Contractor shall defend,
indemnify and hold harmless City, its elected officials, agents, and employees from and against
any and all liability including but not limited to demands, claims, actions, fees, costs and
expenses, including attorney and expert witness fees, arising from or connected with or alleged
to have arisen from or connected with, relating to, arising out of, or alleged to have resulted from
the acts, errors, mistakes, omissions, Work of Contractor, its agents, employees, or any tier of
Contractor's subcontractors in the performance of this Agreement. Contractor's duty to defend,
hold harmless and indemnify City, elected officials, appointees, agents, and employees shall
arise in connection with any tortious claim, damage, loss or expense that is attributable to bodily
injury, sickness, disease, death, or injury to, impairment, or destruction of property including loss
of use resulting therefrom, caused by an Contractor's acts, errors, mistakes, omissions, or Work
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,
Contractor may be legally liable.
9. ENFORCED DELAYS (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
2
event of enforced delay(an "Enforced Delay") due to causes beyond its control and without its
fault or negligence or failure to comply with Applicable Laws, including, but not restricted to, acts
of God, fires, floods, epidemics, pandemics, quarantine, restrictions, embargoes, labor disputes,
and unusually severe weather or the delays of subcontractors or materialmen due to such
causes, acts of a public enemy, war, terrorism or act of tenor(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
Work. In no event will Enforced Delay include any delay resulting from unavailability for any
reason of labor shortages, or the unavailability for any reason of particular consultants,
subcontractors, vendors or investors desired by Contractor in connection with the Work.
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 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.
10. GOVERNING LAW AND VENUE: The terms and conditions of this Agreement shall be
governed by and interpreted in accordance with the laws of the State of Arizona. Any action at
law or in equity brought by either Party for the purpose of enforcing a right or rights provided for
in this Agreement, shall be tried in a court of competent jurisdiction in Pinal County, State of
Arizona. The Parties hereby waive all provisions of law providing for a change of venue in such
proceeding to any other county. In the event either Party shall bring suit to enforce any term of
this Agreement or to recover any damages for and on account of the breach of any term or
condition in this Agreement, it is mutually agreed that the prevailing party in such action shall
recover all costs including: all litigation and appeal expenses, collection expenses, reasonable
attorneys' fees, necessary witness fees and court costs to be determined by the court in such
action.
11. INSURANCE: Contractor, at its own expense, shall purchase and maintain the
minimum insurance and other additional requirements set forth herein.
All insurance required herein shall be maintained in full force and effect until all Work or service
required to be performed under the terms of the Agreement is satisfactorily completed and
formally accepted; failure to do so may, at the sole discretion of the City constitute a material
breach of this Agreement.
Contractor's insurance shall be primary insurance as respect to City, and any insurance or self-
insurance maintained by City shall not contribute to it.
Any failure to comply with the claim reporting provisions of the insurance policies or any breach
of an insurance policy warranty shall not affect coverage afforded under the insurance policies
to protect City.
The insurance policies, except Workers Compensation, shall contain 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 services.
3
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-insured 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.
City reserves the right to request and to receive within ten (10) working days, certified copies of
any or all of the herein required insurance policies and/or endorsements. City shall not be
obligated, however, to review same or to advise Contractor of any deficiencies in such 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 insurance policies, except Workers Compensation, required by this Agreement, shall name
City, its agent, officers, officials and employees as additional insured parties.
REQUIRED COVERAGE
Commercial General Liability
Contractor shall maintain Commercial General Liability insurance with a limit of not less than
$1,000,000 for each occurrence with a $2,000,000 Products/Completed Operations Aggregate
and a $2,000,000 General Aggregate Limit. The policy shall include coverage for bodily injury,
broad form property damage, personal injury, products and completed operations and blanket
contractual coverage including, but not limited to, the liability assumed under the indemnification
provisions of this Agreement which coverage will be at least as broad as Insurance Service
Office, Inc. Policy Form CG 00011-93 or any replacement thereof. In addition, automobile
liability coverage of at least $1 million per occurrence or a combined single limit of at least
$1,000,000 is required. The auto liability policy should contain endorsements for hired autos,
non-owned autos and scheduled vehicles, as applicable to the Contractor's business.
Such policy shall contain a severability of interest provision, and shall not contain a sunset
provision or commutation clause, nor any provision which would serve to limit third party action
over claims.
The Commercial General Liability additional insured endorsement shall be at least as broad as
the Insurance Service Office Inc.'s Additional Insured, Form CG 20101185, and shall include
coverage for Contractor's operations and products and completed operations.
If required by this Agreement, if Contractor sublets any part of the Work, services or operations,
Contractor shall purchase and maintain, at all times during prosecution of the Work, services or
operations under this Agreement, City and Contractor's Protective Liability insurance policy for
bodily injury and property damage, including death, which may arise in the prosecution of the
Contractor's Work or operations under this Contract. Coverage shall be on an occurrence basis
with a limit not less than $1,000,000 per occurrence, and the policy shall be issued by the same
insurance company that issues Contractor's General Liability insurance.
Workers Compensation
Contractor shall carry Workers Compensation insurance to cover obligations imposed by federal
4
and state statutes having jurisdiction of Contractor's employees engaged in the performance of
the Work; 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.
In case any Work is subcontracted, Contractor will require subcontractor to provide Workers
Compensation and Employer's Liability to at least the same extent as required of Contractor.
Umbrella Policy
Contractor shall carry an umbrella policy with a limit not less than $5,000,000. The umbrella
policy shall cover claims that are uncovered by the primary policy and claims in excess of the
primary policy. The umbrella insurance policy shall cover those claims as primary insurance
and fill in the gaps in the underlying policies.
CERTIFICATE OF INSURANCE
Prior to commencing Work under this Agreement, Contractor shall furnish the City with
Certificates of Insurance, or formal endorsements as required by 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.
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 the
Contractor's Work or services and as evidenced by annual Certificates of Insurance, to be filed
with the City Attorney of City.
If a policy does expire during the life of the Agreement, a renewal certificate must be sent to City
thirty(30) days prior to the expiration date. All Certificates of Insurance shall be identified with
Bid serial number and title.
Insurance required herein shall not expire, be canceled, or materially changed without thirty(30)
days' prior written notice to City.
12. SUCCESSORS &ASSIGNS: Neither party to this agreement shall assign the
obligations hereunder, nor shall the Contractor assign any monies due or to become due.
13. 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.
14. SAFETY: Contractor and/or its subcontractors shall be solely responsible for job safety
at all times.
15. RIGHTS & REMEDIES: The duties and obligations imposed by the contract documents
and the rights and remedies available hereunder shall be in addition to and not a limitation of
any duties, obligations, rights and remedies otherwise imposed or available by law. No action
or failure to act by City or Contractor shall constitute a waiver of any right or duty afforded any of
them under the contract, nor shall any action or failure to act constitute an approval of or an
5
acquiescence to any breaches hereunder except as may be specifically agreed to in writing.
16. TERMINATION OF CONTRACT: If, for any reason, the Contractor shall fail to fulfill in a
timely and proper manner it's obligations under the contract, or if the Contractor shall violate any
of the covenants, agreements, or stipulations of the contract, the City shall thereupon have the
right to terminate the contract by giving written notice to the Contractor of such termination and
specifying the effective date thereof.
Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages
sustained by the City by virtue of any breach of the contract by the Contractor.
The Parties may terminate the contract at any time by giving at least ninety(90) calendar days
Notice of Intent to Terminate. If the contract is terminated by the City as provided herein, the
Contractor will be paid for the time expended and expenses incurred up to the termination date.
17. APPEALS: All contractual grievances shall be submitted in writing to the City Manager
within five (5) calendar days after the difference of opinion or grievance occurs relating to any of
the provisions of the terms of this Agreement. Within five (5) calendar days of receiving a
written grievance, the City Manager shall respond in writing. The City Manager's decision shall
be final and binding, subject only to a further appeal in the Pinal County Superior Court pursuant
to A.R.S. § 12-901, of seq.
18. RECORDS: Records of Contractor's labor, payroll and other costs pertaining to this
Agreement 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 three (3)
years after termination of this Agreement, and shall make such records available during that
retention period for examination or audit by City personnel during regular business hours.
19. AMENDMENT: It is mutually understood and agreed that no alteration or variation of the
terms and conditions of this Agreement shall be valid unless made in writing and signed by the
parties hereto, and that oral understandings or agreements not incorporated herein shall not be
binding on the parties.
20. 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.
21. CONFLICT OF INTEREST: This Agreement is subject to, and may be terminated by
City in accordance with, the provisions of A.R.S. § 38-511.
22. TIME IS OF THE ESSENCE: Time is of the essence with respect to all provisions in this
6
Agreement. Any delay in performance by either Party shall constitute a material breach of this
Agreement.
23. 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, or its subcontractors, under this Agreement
engage in any such boycott against the State of Israel, this Agreement is automatically
terminated. Any such boycott is a material breach of contract and will subject Contractor to
monetary damages.
24. 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 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 2748 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 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.
7
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be signed by their
duly authorized representative as of this %1-- day of ttisr , 204.
CONTRACTOR:
CENTRAL ARIZONA COUNCIL ON
DEV LOPMENTAL SABILITIES
By: Doug Bacon
Title: Executive Director
CITY:
CITY OF APACHE JUNCTION
an Arizona municipal corporation
By: Jeff Serdy
Title: City Mayor
ATTEST:
Kathleen Connelly
City Clerk
APPROVED A FORM:
Richard J. Stem
City Attorney
8
STATE OF 2cl ss.rr- )
COUNTY of 1��`� )
The foregoing was subscribed and sworn to before me this �� day of
s--f 20 [-7, by Doug Bacon, as Executive Director of Central Arizona
CoAcil on Developmental Disabilities.
Notary b '
My Commission Expires:
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STATE OF ARIZO A )
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COUNTY OF th, )
The foregoing was subscribed and sworn to before me this 3,Aay of
&94S-r 20 I7, by Jeff Serdy, as Mayor of the City of Apache Junction,
Arizona, an Arizona municipal corporation.
4iRoPublic
My Commission Expires:
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V
ATE OF ARIZONA
Mseicopa County
NET R MASON
xpires August 31,2020
9
EXIBIT A
Transportation Costs
1. TOTAL COST OF SERVICES: In accordance with the terms and conditions of this
Agreement, City shall compensate Contractor for senior transportation services in an
amount not to exceed $70,000 per year. This total is reliant on receiving all anticipated
gift and grant funds and program revenue to supplement the City's expenses.
2. SENIOR TRANSPORTATION COSTS (HOME TO MGC): Senior transportation from
clients' homes to and from the Multi-Generational Center("MGC") shall be charged at a
rate of$15.00 per client per round-trip. The route shall be coordinated by the Parties and
shall run Monday through Friday all days that the senior congregate meal program
operates. A minimum of five (5) clients shall be charged each day that transportation to
the MGC occurs.
3. SENIOR TRANSPORTATION COSTS (ADDITIONAL): Senior transportation to and
from medical and shopping trips shall be charged at a rate of$4.00 per mile and $24.00
per hour for each trip. Trips shall be scheduled on a case-by-case basis with the
Contractor only as funds are available.
10
FIRST AMENDMENT TO PROFESSIONAL SERVICE. AGREEMENT
BETWEEN CITY OF APACHE JUNCTION AND CEN1 RAL ARIZONA
COUNCIL ON DEVELOPMENTAL DISABILITIES
THIS AMENDMENT is made and entered into this-�7 day of ,
20aU ("the Execution Date") by and between the CITY OF APACHE JUNCTION,
an Arizona municipal corporation ("City"), and CENTRAL ARIZONA COUNCIL ON
DEVELOPMENTAL DISABILITIES, a 501(c)(3) not for profit corporation
("Contractor"), collectively referred to as the "Parties" or individually as a "Party".
RECITALS
A. The Parties entered into an agreement for senior transportation services
(the "Agreement") on August 28, 2017 for a year, and then with the automatic four
(4) one-year renewal periods, have a final end date of June 30, 2022.
B. Beyond that date City will still need senior transportation services for
meals, medical and shopping outings.
C. The Parties desire to extend the term of the Agreement for another six (6)
years through the end of fiscal year 2027-2028.
D. Due to the increased cost of fuel and other inflationary operational
expenses the transportation costs in Exhibit A need to be adjusted.
E. Formal procurement for the services provided under this Agreement are
categorically exempted.
F. This First Amendment sets forth the renewal terms.
AGREEMENT
NOW, THEREFORE, in consideration of mutual promises contained herein
and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the Parties agree to amend the Agreement as follows:
Section 2. PRICES: Prices shall be governed under attached Exhibit A
"Transportation Costs".
Section 3. CONTRACT TERM: This Agreement shall be effective beginning on
July 1, 2022 and shall remain in full force and effect through June 30, 2023, with
five (5) additional one year renewal periods with the final end date of June 30,
2028, subject to the early termination option in § 16 Termination of Contract (90
day written notice of intent to terminate). However, no later than 90 calendar days
before the end of the second and fourth year this First Amendment is in effect (i.e.,
April 2, 2024 and April 2, 2026), Contractor has the right to notify City of a
proposed price increase. If the Parties agree to a price increase, the terms shall
be reduced to writing in the form of a subsequent amendment to the Agreement.
Should the negotiations fail, this First Amendment will be deemed terminated
immediately after June 30, 2024 or June 30, 2026, as applicable, without the
necessity of a notice of intent to terminate by either Party.
Section 12. SUCCESSORS &ASSIGNS: City and Contractor each bind themselves,
their partners, successors, assigns and legal representatives to the other Party
hereto and to the partners, successors, assigns and legal representatives of such
other Party in respect to all covenants, agreements and obligations contained in
this Agreement. Neither Party to the contract shall assign the contract as a whole
or delegate the duties hereunder, without the written consent of the other, nor shall
Contractor assign any monies due or to become due to it without the previous
written consent of City.
Except as expressly amended herein, all other terms and provisions of the
Agreement executed by the Parties shall remain in full force and effect.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be
signed by their duly authorized representatives as of the day and year first above
written.
CONTRACTOR:
CENTRAL ARIZONA COUNCIL ON
DEVELOPMENTAL DISABILITIES, a
501(c)(3) not for profit corporation
By: do c/o 1p46 Z A c o;�_
Its: Executive Director
CITY:
CITY OF APACHE JUNCTION, an
Arizona municipal corporation
e414
By: Walter`Chip" Wilson
Its: Mayor
ATTEST:
n c�
+Jnn ife Pena
City CI rk
2
APPROVED AS TO FORM:
2 T �z
R. Joel Stern
City Attorney
3
EXHIBIT A
Transportation Costs
1. TOTAL COST OF SERVICES: In accordance with the terms and condition
of this Agreement, City shall compensate Contractor for senior
transportation services in amount not to exceed $70,000 per year. This
total is reliant on receiving all anticipated gift and grant funds and
program revenue to supplement the City's expenses.
2. SENIOR TRANSPORTATION COST (HOME TO MGC): Senior transportation
from clients' home to and from the Multi-Generational Center("MGC") shall
be charged at a rate of$17.50 per client per round trip. The route shall be
coordinated by the Parties and shall run Monday through Friday all the
days that the senior congregate meal program operates. A minimum of six
(6) clients shall be charged each day that transportation to the MGC
occurs.
3. SENIOR TRANSPORTATION COSTS (ADDITIONAL): Senior transportation
to and from medical and shopping trips shall be charged at a rate of$6 per
mile and $25 per hour for each trip. Trips shall be scheduled on a case-by
case basis with the Contractor only as funds are available.
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN CITY OF APACHE JUNCTION AND CENTRAL ARIZONA
COUNCIL ON DEVELOPMENTAL DISABILITIES
THIS SECOND AMENDMENT is made and entered into this g?l day of
2024,t"the Execution Date") by and between CITY OF APACHE
JUNCTION, ARIZONA, an Arizona municipal corporation ("City"), and CENTRAL
ARIZONA COUNCIL ON DEVELOPMENTAL DISABILITIES, a 501(c)(3) not-for-
profit corporation ("Contractor"), sometimes each collectively referred to as the
"Parties" or individually as the "Party".
RECITALS
A. The Parties entered into an agreement for senior transportation
services (the "Agreement') on August 28, 2017 for one year, and then with
automatic four (4) one-year renewals, had a final contract end date of June 30,
2022.
B. The Parties entered into a First Amendment beginning on July 1, 2022,
ending on June 30, 2028 with one-year automatic renewal options being
exercised.
1
C. Since 2023, fuel and other inflationary operational expenses increased
significantly which the Parties agree need adjustment.
D. Formal procurement for the services provided under this Agreement
are categorically exempted under A.J.C.C., Vol. I, Art. 3-7.
E. This Second Amendment sets forth the above-noted terms.
AGREEMENT
NOW, THEREFORE, in consideration of mutual promises contained herein
and other good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, the Parties agree to amend the Agreement as follows:
Section 2. PRICES. Prices shall be governed under attached Exhibit A
"Transportation Costs", for general cost of services, senior transportation costs
(home to multi-generational center) and additional medical/shopping trips.
Section 3. CONTRACT TERMS. This agreement shall be effective
beginning on July 1, 2024 and shall remain in full force and effect through June
30, 2025, with five (5) additional one-year renewal periods with the final end date
of June 30, 2028, subject to the early termination option in Section 16,
Termination of Contract(90 day written notice of intent to terminate).
Except as expressly amended herein, all other terms and provisions of the
Agreement shall remain in full force and effect until the Agreement is
terminated.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be
signed by their duly authorized representatives as of the day and year first
above written.
CONTRACTOR:
CENTRAL ARIZONA COUNCIL ON
DEVELOPMENTAL DISABILITIES, a
501(c)(3) not f r- o t corporation
By:
Its: 1'x;c-,.ha 7), ,d
CITY:
CITY OF APACHE JUNCTION, ARIZONA,
an Arizona municipal corporation
e:�Ijd6 g2
e.�
By: Walter"Chip"Wilson
Its: Mayor
ATTEST:
(7 ice'
Jennifer ena
City Clerk
APPROVED AS TO FORM:
R. Joel Stern
City Attorney
2
EXHIBIT
TRANSPORTATION COSTS
1. TOTAL COST OF SERVICES: In accordance with the terms and conditions
of this Agreement, City shall compensate Contractor for the senior
transportation services in an amount not to exceed $ 70,000 per year. This
total is reliant on receiving all anticipated gift and grant funds and
program revenue to supplement the City's expenses.
2. SENIOR TRANSPORTATION COST (HOME TO MGC): Senior
transportation from client's home to and from the Multi-Generational
Center("MGC") shall be charged at a flat rate of$240 per day, for up to 18
clients. The route shall be coordinated by the Parties and shall run
Monday through Friday for all days the senior's congregate meal program
operates. Special routes requested to run Saturday or Sunday will be
charged at a flat rate of$320 per day, for up to 18 clients.
3. SENIOR TRANSPORTATION COST (Group shopping, food boxes, or other
extended days): Will be charged at an additional $80 per day (Monday
through Friday), for up to 18 clients.
4. SENIOR TRANSPORTATION COST (Additional): Senior transportation for
clients (1 to 2 clients) from their home and from medical or individual
shopping trips shall be charged at a rate of$8.00 per mile and $25.00 per
hour rounded to the next'/4 hour) for each trip. Trips shall be scheduled on
a case-by-case basis with the contractor only as funds are available.
THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN CITY OF APACHE JUNCTION AND CENTRAL ARIZONA
COUNCIL ON DEVELOPMENTAL DISABILITIES
THIS THIRD AMENDMENT is made and entered into this day of
, 2026, ("the Execution Date") by and between CITY OF APACHE
JUNCTION, ARIZONA, an Arizona municipal corporation ("City"), and CENTRAL
ARIZONA COUNCIL ON DEVELOPMENTAL DISABILITIES, a 501(c)(3) not-for-
profit corporation ("Contractor" or "CACDD"), sometimes each collectively
referred to as the "Parties" or individually as the "Party".
RECITALS
A. The Parties entered into an agreement for senior transportation
services (the "Agreement") on August 28, 2017 for one year, and then with
automatic four (4) one-year renewals, had a final contract end date of June 30,
2022.
B. The Parties entered into a First Amendment beginning on July 1, 2022,
ending on June 30, 2028 with one-year automatic renewal options being
exercised.
C. To address an increase in fuel and other inflationary operational
expenses, the Parties entered into a Second Amendment beginning on May 21,
2024, ending on June 30, 2028 with one-year automatic renewal options being
exercised.
D. To address the continued increase in fuel and other inflationary
operational expenses, the Parties would like to enter in a Third Amendment
beginning on July 1", 2026 ending on June 301h 2027 with five (5) additional one-
year renewal periods.
AGREEMENT
NOW, THEREFORE, in consideration of mutual promises contained herein
and other good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged, the Parties agree to amend the Agreement a third time
as follows:
Section. 2. PRICES. Prices shall be governed under attached Exhibit A
"Transportation Costs", for general cost of services, senior transportation costs
(trip from home to multi-generational center and back) and additional
medical/shopping trips.
Section 3. CONTRACT TERM. This Third Amendment to the Agreement
shall be effective beginning on July 1, 2026 and shall remain in full force and
effect through June 30, 2027, with five (5) additional one-year renewal periods
with the final end date of June 30, 2033, subject to the early termination option in
Section 16, Termination of Contract (90 day written notice of intent to
terminate).
Except as expressly amended herein, all other terms and provisions of the
Agreement shall remain in full force and effect until the Agreement is
terminated.
IN WITNESS WHEREOF, the Parties have caused this Amendment to be
signed by their duly authorized representatives as of the day and year first
above written.
CONTRACTOR:
CENTRAL ARIZONA COUNCIL ON
DEVELOPMENTAL DISABILITIES, a
501�c)(3) ot-fogrofit corporation
By: oualas Bacon
Its: Executive Director
CITY:
CITY OF APACHE JUNCTION, ARIZONA,
an Arizona municipal corporation
By: Walter "Chip" Wilson
Its: Mayor
ATTEST:
Yvette McKinney
City Clerk
APPROVED AS TO FORM:
14 5 .26-26
R. Joel Stern
City Attorney
2
EXHIBIT A
TRANSPORTATION COSTS
1. TOTAL COST OF SERVICES: In accordance with the terms and conditions
of this Agreement, City shall compensate Contractor for the senior
transportation services in an amount not to exceed $ 80,000 per year. This
total is reliant on receiving all anticipated gift and grant funds and
program revenue to supplement the City's expenses.
2, SENIOR TRANSPORTATION COST (TRIP HOME TO MGC AND BACK):
Senior transportation from client's home to and from the Multi-
Generational Center ("MGC") shall be charged at a flat rate of $275 per
day, for up to 16 clients. The route shall be coordinated by the Parties and
shall run Monday through Friday for all days the senior's congregate meal
program operate. Special routes requested to run days CACDD are
scheduled off (Holiday, Saturday or Sunday) will be charged at a flat rate
of$320 per day, for up to 16 clients.
3. SENIOR TRANSPORTATION COST (Group shopping, food boxes, or other
extended days): Will be charged an additional $80 per day (Monday
through Friday), for up to 16 clients.
4. SENIOR TRANSPORTATION COST (Additional): Senior transportation for
clients (1 to 2 clients) from their home and from medical or individual
shopping trips shall be charged at a rate of$10.00 per mile and $40.00 per
hour rounded to the next'/4 hour) for each trip. Trips shall be scheduled on
a case-by-case basis with the contractor only as funds are available.
5. CITY BOUNDARIES For the purpose of the contract, Apache Junction
is defined as the original area of population when the 1" contract was
signed (North to McKellips, East to Mountain View, South to Baseline
and West to Meridian). The new population area south of Baseline can
be serviced at a rate of $20 per trip/per day (to and from Sr Center
equals 1 trip).
6. SECOND VEHICLE COSTS If a second vehicle is required to service
the seniors due to excess riders, excess durable medical equipment
(wheelchairs, scooter, walker etc. or other needs) there will be a
charge at $150 per day. Whether a second vehicle is needed is at the
sole discretion of CACDD. The City will be advised in advance and
given the option to decline the second vehicle.
SENIOR SERVICES
. . PROFESSIONAL AGREEMENT
FOR SENIOR TRANSPORTATION
Jamie Sullivan, Recreation Superintendent
June 2026
HISTORY OF SERVICES
• August 1st 2017 The City of Apache Junction entered into agreement with Central
Arizona Council on Developmental Disabilities.
• This agreement allows CACDD to provide transportation to and from the Multi-
Generational Center, daily (M-F) for lunch and social/educational/wellness
activities., and weekly shopping trips and medical trips as needed.
• May 24th 2022, theiFrst Amendment was added.
• May 6th 2024, the Second Amendment was added.
V
SENIOR PART%ICIPATil
ON NUMBERS
CALENDAR YEAR 2025
ad
NUMMON TRANSPORTAnON SOCIAL PROGRAMS
- A: - ®
X'l
S "l..
• Ills. � •
:� 1 ..._ -_sue._ -• I d
14.9 3100 TRIPS 96 REGISTERED
Congregate Meals at the MGC One way trips - to/from the MGC, Activities, programs, events,
shopping, and medical trips fitness, and services
2024 2026
• $UO flat rate per day/max 18 riders 0 $275 flat rate per day/max 16 riders
• $8/mile and $25/hour for individual 0 $10/mile and $40/hour for individual
or medical trips (very rarely needed) or medical trips (rarely needed)
• $80 flat rate for extended days • Added fee for extended service area
(shopping, food boxes) if needed
• Added language and fee to
accommodate if a second vehicle is
required
CACDD TRANSPORTATION AGREEMENT
With the rising cost of fuel, personnel cost and a broader service area,
staff feel this is a fair adjustment.
Staff recommends approving the third amendment to the transportation
agreement with CACDD for councirs approval. We will bring this back
for final consideration on June 16th (consent agenda).
Ot) EsIaIOIMs ?
Jamie Sullivan , Recreation Superintendent
jsullivan@apachejunctionaz . gov
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No.4.
'+PizoN* File ID: 26-284
Sponsor: Liz Langenbach Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion regarding Resolution No. 26-02, authorizing the submittal of a
Recreation Trails Program grant submittal to the Arizona State Parks Department for signage
along the multi-use trail system managed by Parks and Recreation.
City of Apache Junction,Arizona Page 1 Printed on 512812026
RESOLUTION NO. 26-02
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF
GRANT APPLICATION FOR THE RECREATIONAL TRAILS PROGRAM.
WHEREAS, in 1991 the United States Congress passed Public
Law 102-240, wherein it created the Recreational Trails Program
("RTP") which provides funding to states to develop and maintain
recreational trails and trail-related facilities for motorized
and non-motorized trail uses; and
WHEREAS, Arizona State Parks ("'Parks") is responsible for
the administration of the Statewide RTP Project ("Project") and
adoption and enforcement of rules and procedures governing
applications submitted by eligible Project sponsors; and
WHEREAS, the rules and procedures established by Parks
require a Project sponsor to certify by resolution the approval
of applications, signature authorization, availability of local
matching funds and authorization to sign Project-related
documents .
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF APACHE JUNCTION ARIZONA, AS FOLLOWS :
SECTION I :
Staff is authorized to submit an application to Parks for RTP
funds and the mayor is authorized to sign applications,
contracts and other related documents for receipt and use of
grant funds for the RTP grant to replace signage along the Sheep
Drive Multi-Use trail horse crossings in an amount of $10, 000 .
SECTION II :
The City of Apache Junction agrees to comply with all pertinent
grant submittal procedures, guidelines, policies and
requirements .
SECTION III :
The City of Apache Junction appoints the director of the City of
Apache Junction Parks and Recreation Department or her designee
as its agent to conduct all negotiations, execute and submit all
RESOLUTION NO. 26-02
PAGE 1 OF 2
documents including, but not limited to, applications,
agreements, amendments, billing statements and other related
materials which may be necessary for the completion of the
Projects .
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS DAY OF
20
SIGNED AND ATTESTED TO THIS DAY OF
20
WALTER "CHIP" WILSON
Mayor
ATTEST:
EVIE MCKINNEY
City Clerk
APPROVED AS TO FORM:
RICHARD J. STERN
City Attorney
RESOLUTION NO. 26-02
PAGE 2 OF 2
RECREATION TRAIL PRO RAM
JUNE 2026
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(installation)
, S adows , . . . . .
. 1
Silly Mountain Park
, , 1
----- --- Final award will occur 120,26
Legend
Existing Trailhead
Combination Vehicle/Equestrian Gate
Hiking/Equestrian Gate
US Bike Route 90
---Existing Bike Lanes
• • lJ3:J Sidewalks
N —Existing Shared-Use Trail
Non-City Trails
O Park Boundary
W E
Sheep Drive Multi-Use Trail
0 0.25 0.5 1 1.5 2 ®Apache Junction Municipal
S Miles ',Pinal County
DISCLAIMER'.This exhibit was prodLTred by Apache Junction GIs without the benefit of a field survey and is not intended to represent a survey document of any kind.Distances shown hereon are approxim te.
'44
Staff request council approval of Resolution No 26-0,2,
authorizing the submittal of a Recreation Trails
Program grant application.
This item will be brought back for final approval t o the
June 16th meeting (consent agenda).
�u rru u�\
►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
_ 85119
Agenda Item No. 5.
Piz File ID: 26-281
Sponsor: Hudson Meyer Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion of case P-26-6-PZ, a request by Kimberly Bergman for a
rezoning of 275 S. Cactus Road, an approximately 1.25 gross acre parcel from Medium
Density Single-Family Detached Residential ("RS-10M")to General Rural Low Density
Single-Family Detached Residential ("RS-GR").
City of Apache Junction,Arizona Page 1 Printed on 512812026
O� ACHE�Gti
Z City of Apache Junction
gRIZON� Development Services Department ,., '`
P
CITY COUNCIL WORK SESSION
STAFF MEMO
Date : June 1, 2026
To: Honorable Mayor and City Council Members
Through: Bryant Powell, City Manager
Rudy Esquivias, Development Services Director
Sidney Urias, Development Services Deputy Director
From: Hudson Meyer, Associate Planner
Case Number: P-26-6-PZ
Subject: 275 S . Cactus Proposed Rezoning
Summary
P-26-6-PZ is a proposal by Kimberly Bergman to rezone
approximately 1 . 25 gross acres currently zoned Medium Density
Single-Family Detached Residential ("RS-10M") to General Rural
Low Density Single-Family Detached Residential ("RS-GR") .
Planning & Zoning Commission Hearing and Recommendation
On May 12, 2026, the Planning and Zoning Commission held a public
hearing for P-26-6-PZ . At the meeting the Commission discussed
concerns raised by residents regarding potential business
operations, horse use on the property, and the proposed conditions
of approval .
The Planning and Zoning Commission evaluated the proposed rezoning
and subsequently voted 6-0 to forward P-26-6-PZ to the Apache
Junction City Council with a recommendation of approval, without
the second proposed Condition of Approval which read:
2) No business activity shall occur on the property,
including but not limited to the storage or parking of
commercial vehicles, equipment, or construction materials .
Additionally, no operations, activities, or uses that
create commercial-related nuisances - such as excessive
noise, dust, odors, outdoor storage, or increased traffic
Planning& Zoning-Building& Safety-Revenue Development
300 E. Superstition Boulevard • Apache Junction,AZ 85119 • Ph: (480)474-5083 •Fax(480)982-7010
associated with a business operation — shall be permitted
on the site .
Staff included this condition in response to neighborhood concerns
conveyed during the planning review process . However, the Planning
and Zoning Commission perceived the inclusion of this condition
was redundant, as the Apache Junction Zoning Ordinance already
prohibits business activity of this scope on residentially zoned
properties .
Attached:
- Planning and Zoning Commission Staff Report and attachments (May 12, 2026)
Planning& Zoning—Building& Safety—Revenue Development
300 E. Superstition Boulevard • Apache Junction,AZ 85119 • Ph: (480)474-5083 •Fax(480)982-7010
1
O� PQACHF✓G�0
�y Z City of Apache Junction
Development Services Department k'7
qR/ZONP
PLANNING AND ZONING COMMISSION
PUBLIC HEARING STAFF REPORT
DATE : May 12, 2026
TO: Planning and Zoning Commission
THROUGH: Rudy Esquivias, Development Services
Director
Sidney Urias, Development Services Deputy
Director
FROM: Hudson Meyer, Associate Planner
CASE NUMBER: P-26-6-PZ "275 S . Cactus Rezoning"
OWNER/APPLICANT: Kimberly Bergman
REQUEST: Proposed Rezoning of an approximately 1 .25
gross acre parcel located at 275 S . Cactus
Road zoned Medium Density Single-Family
Detached Residential ("RS-10M") to General
Rural Low Density Single-Family Detached
Residential ("RS-GR") .
LOCATION: The subject site is located near the
northeast corner of 4th Avenue and Cactus
Road.
GENERAL PLAN
DESIGNATION: Medium Density Residential (10 DU/AC Max)
ZONING DESIGNATION: Medium Density Single-Family Detached
Residential "RS-10M" .
SURROUNDING USES : North: Medium Density Residential Zoned
properties "RS-10M" .
South: Medium Density Residential zoned
properties "RS-10M" .
Cases P-26-6-PZ
May 12,2026 Planning and Zoning Commission Staff Report
2
East: Weaver' s Needle RV Resort zoned
Recreational Vehicle Park "RVP" .
West: Medium Density Residential zoned
properties "RS-10M" and General Rural Low
Density Single-Family Detached Residential
properties `RS-GR" .
PROPOSALS
P-26-6-PZ is a proposal by Kimberly Bergman to rezone
approximately 1 . 25 gross acres currently zoned Medium Density
Single-Family Detached Residential ("RS-10M") to General Rural
Low Density Single-Family Detached Residential ("RS-GR") .
BACKGROUND
The subject site at 275 S . Cactus is an approximately 1 . 25 acre
single-family residential property that was developed in 1997
according to the Pinai County Assessor' s Office.
The property was designated Medium Density Single-Family
Detached Residential "RS-10M" in 2014 when the Zoning Ordinance
was updated. Unlike the neighboring properties however this
parcel was never split any further than 1 . 25 acres . Provided the
difference in zoning standards between "RS-10M" and "RS-GR" this
rezoning request aims to bring the property under standards that
are more applicable to the subject site.
PLANNING STAFF ANALYSIS
Relationship to General Plan:
While the property itself is designated with the Medium-Density
Residential land use designation, the surrounding neighborhood
is largely designated Low Density Residential beyond the
immediately adjacent properties . This rezoning would bring the
zoning more in line with that of similar sized parcels in the
area.
Additionally, the proposed zoning change from the Medium-Density
Residential "RS-10M" to the Low-Density Residential "RS-GR" does
not create a conflict requiring a General Plan amendment, as
"any proposed zoning map change from a higher density
residential zoning district to a lower density residential
zoning district" does not require a major or minor amendment.
Cases P-26-6-PZ
May 12,2026 Planning and Zoning Commission Staff Report
3
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Zoning/Site Context:
The subject property is surrounded by residential land uses, as
noted:
• North of the property are three "RS-10M" zoned properties,
as well as Weaver' s Needle RV Resort zoned "RVP. "
• South of the property are more single-family residential
lots zoned "RS-10M. "
• East of the property is Weaver' s Needle RV Resort zoned
"RVP. "
• West of the property are single-family residential lots
zoned "RS-10M" as well as "RS-GR. "
Cases P-26-6-PZ
May 12,2026 Planning and Zoning Commission Staff Report
4
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Public Input:
The applicant sent out neighborhood meeting notification letters
to the property owners within a three-hundred (300' ) radius, per
the standard requirements of a rezoning, notifying neighbors of
the proposed development and providing them contact information
to learn more about the project.
The advertised neighborhood meeting was held on Thursday,
January 29, 2026 at the Apache Junction Multi-Generational
Center. Eight neighbors attended and had questions about how the
use of the property may change with the rezoning.
Staff have received three comments via email regarding the
proposed rezoning, one expressing support and two noting
concerns regarding the placement of a cargo container on the
site, as well as potential use for business activities . The
comments have been attached to the Public Participation Report
(Exhibit #4) .
PLANNING DIVISION RECOMMENDATION
In review of the project proposal, Staff is supportive of the
proposed Rezoning Case P-26-6-PZ and respectfully recommends to
the Commission a favorable recommendation to the City Council,
subject to the conditions of approval noted below. As always,
Cases P-26-6-PZ
May 12,2026 Planning and Zoning Commission Staff Report
5
Commissioners may recommend changes or additional conditions
which they feel will improve the development plan.
RECOMMENDED MOTION FOR REZONING
I move that the Planning and Zoning Commission recommend to the
Apache Junction City Council the approval of the proposed
Rezoning Case P-26-6-PZ, a request by Kimberly Bergman to rezone
Parcel 101-22-0680, currently zoned Medium Density Single-Family
Detached Residential ("RS-10M") to General Rural Low Density
Single-Family Detached Residential ("RS-GR") , subject to the
following condition of approval :
1) The development shall reflect substantial compliance and
consistency with the city' s zoning ordinance and all
applicable codes and plans presented in case P-26-6-PZ .
----------------------------------------------------------------
Prepared by Hudson Meyer
Associate Planner
Attachments :
Exhibit #1 - Project Narrative
Exhibit #2 - Proposed Site Plan
Exhibit #3 - Aerial Map
Exhibit #4 - Public Participation Plan & Report
Cases P-26-6-PZ
May 12,2026 Planning and Zoning Commission Staff Report
PROJECT NARRATIVE
275 S. CACTUS RD.
Kimberly,Eric and&Hannah Bergman
602-579-3564 KimberlyLBergman@gmail.com
1860 N.Thunderbird Dr.
Apache Junction,AZ 85120
PROPERTY REZONE REQUEST
With this request we seek to rezone the property located at 275 S. Cactus Rd
(APN- 101-22-0680) from RS-IO-M to RS-GR to allow for a better use of the
full piece of the property.
As it stands now with the current zoning, we are unable to use almost 2/3 of the
property. We currently have a storage container that we seek to have permitted or
possibly build a garage but we are unable to do either with the current zoning. The
existing shed/workshop are not sufficient as you are not able to park a vehicle in
either of them but with these two buildings and the house, we are at maximum
square foot usage of the property per the RS-IOM zone code.This property serves
as home for our daughters's family to include 2 children and her partner. One of
our grandchildren is Autistic and we made the choice to purchase this property as
it's situated to be very private. With that being said, it was a family financial
sacrifice to purchase it. In addition to providing a home for our daughter's family,
we want to have a building or the storage container to store our business material,
Christmas Decoration, and various household items you would typically store.
Provided that we are able to rezone and build a garage, it will not change the
character of the existing neighborhood. Most if not all surrounding properties,
have garages while they are on smaller pieces of property. Our's is the largest one
in RS-10-M as it was never split up as the others have been. The property backs
up to a large piece of property that is zoned RS-GR. The rest of the area is all RS-
GR with the exception of a small number of properties in RS-10-M and this
rezone aligns with the larger area. This rezone would not require any additional
infrastructure, and would not create any additional traffic for the neighborhood or
have an noise/environmental impact. If the zoning is approved and we do build a
structure or permit one of the containers, this is will not be visible from the street
and currently we have private screen on the fence at the back of the property.
REVISED: Post RDR Review Comments
The proposed garage/storage unit will be located as the same as it is on the site
map with a similar footprint for any future structure. Currently, there are two
Conex containers with one being sold and removed soon.
As this structure upon rezone will be partially for personal and business material
usage, the hours of utilization will vary. Small trailer and trucks are currently on
site for storage purposes. Taking into account for noise ordinances, and usage
during daylight hours, the impact on this rezone would be minimal on the
neighbors. Prior to moving onto the property we met with all the surrounding
neighbors albeit one neighbor to advise that at any point, communicate to us on
any perceived disturbances so that it can be addressed.
We do not want to impede not only our view of the mountains but do no want to
impede view of the surrounding neighbors. We intentionally placed the storage as
to no impede views.At this time we do not have a set plan for building as without
the rezone we cannot build anything. Provided that the rezone is approved,
permitting/plans will follow.
Per the Pre-Application Department comments from the following
Water: There is no plan to add any additional water lines. There is a spigot
already located near the proposed storage unit/garage If at any point in the future
this would be needed,proper permits would be applied for.
Site Development Engineering: No comments or requirements
Public Works Engineering: No comments or requirements for this project.
Public Works Floodplain & Stormwater:Any proposed site improvements may
need to be FEMA compliant due to potential FEMA standards being implemented
in August 2025.
Building & Safety: We will need to comply with current codes as of 2018 and
potentially adhere to 2024 international codes within 2025
Sewer: They take no exception to the project. If plumbing is added a sewer permit
would be required.
Public Safety: No concerns on this project.
Economic Development : No comments on this case
Fire & Medical (Staff Contact: Richard Mooney—480-982-4440 ext. 160;
Richard.mooney@sfmd.az.gov)
Property owners notes on comments from the SFMD more clarification in
bold below.
1. Superstition Fire &Medical District(SFMD) follows the 2018 International
Fire Code (IFC) with
Amendments approved by the SFMD Fire Board.A copy of the 2018 IFC and our
amendments can be
found on our website: https:Hsfind.az.gov/ .
2. Road(driveway) access must be at least 24 feet wide. It is 30 feet per the site
map.
3. The access road to all units on the project site must be identified as the access
street and not just an easement that could be blocked at a later date.
Email correspondence from Theint Thandar Ko :"Per our team's discussion
regarding the formal Public Access Way (PAW) dedication, the (PAW) application
will not be required as part of the Rezoning process at this time."
The current driveway is and has been dedicated to use for all since the property
was developed and that will not change. The access road could potentially be
dedicated to be of perpetual usage for all during this process.At no time have we
considered anything otherwise as it provides access to to all homes to the South
of 275 S. Cactus Rd..
4. SFMD is concerned about adding additional structures to a property without a fire
hydrant nearby,
especially if business and personal materials are stored on the property. Tender
operations are required to support any fire operations on the property. Currently,
there is a water spigot that is near the current structures.
5. The road to the property entrance is on the access road, making tender
operations difficult because there is
only one entry point. There are 3 gates openings on the access road, in
varying widths from two gates of 20' and one 25'.
6. The addition of a garage to the property means the fire district would like to
access it. However, SFMD
does not have the authority to mandate a 20-foot access road to the garage,
especially after the property is
rezoned and the garage is built. There is a 30 foot wide access road to the
property and current and/or any future storage structure.
7. SFMD would like an access gate on Cactus as a second means of egress into
the property.
8. SFMD cannot enforce fire codes on residential properties, so adding additional
buildings on a residential
property is not ideal for fire suppression activities with the limited water supply in
the area(no fire
hydrants).
9. SFMD will not support or deny the property's rezoning; we have concerns
about the increased fire load on
the property without a permanent water supply and only one means of egress to
the property.
10. SFMD reserves the right to add comments as more detailed plans are
provided.
First Site plan submitted did not include the third gate/access. It has been
added to to the revised site map. The three gate entrances would provide
access to both the house and the proposed structure location in the event of a
fire emergency.
We do appreciate your consideration of this rezone.
Sincerely yours,
Eric, Kimberly and Hannah Bergman
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DISCLAIMER:This map was produced without benefit of a field survey
and is not the intended use.The use of this map is for informational
ArcGIS Web Map purposes only and the City of Apache Junction makes no warranty,
Pxpressed or implied,regarding the reliability of the information provided.
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LEGEND City of Apache Junction
Apache Junction Municipal Boundary Parcels RVP N
Apache Junction = City of Apache Junction Ephemeral Washes n
0 County Boundary Zoning Districts ,L\v
Mobile Home and RV Parks RS-10M Documents by Quarter Section May 6, 2026
RS-GR o 0.01 o os
mi
Content maintained by the Apache Junction GIs Division
0
c
•
yp� rIts Ii Apache Junction Parks & Recreation
°'i recreation 1035 N. Idaho Rd
ft bmeali*"i°" Apache Junction, AZ 85119
480-983-2181
ajpr@apachejunctionaz.gov
www.apachejunctionaz.gov/parks
PERMIT #7549 Authorized On: 11/13/2025 04:10 PM
NOTE: Rental
Location Authorized Agent
Multi Gen Center Dylan Kessler
1035 North Idaho Road Apache RESERVATIONS 480-983-2181
Junction,AZ 85119 ajpr@apachejunctionaz.gov
Permit Holder https://www.apachejunctionaz.gov/111/
Kimberly Bergman Parks-Recreat
1860 N Thunderbird Dr Apache
Junction,AZ 85120 602-579-3564
Location Facility Date Time Hours Fee Multi Gen Center MGC Art Room-Seniors R119 Thu,Jan 29th 2026 04:00
PM-06:00 PM 2.00$40.00 TOTAL: $40.00
CHARGES
LOCATION FACILITY DESCRIPTION TOTAL PAID BALANCE DUE Multi Gen Center MGC Art Room-Seniors R119 Jan
29,2026 4:00 PM-6:00 PM$40.00$40.00$0.00 TOTAL: $40.00$40.00$0.00
PAYMENTS
RECEIPT#DATE/TIME DESCRIPTION AMOUNT 97692917 11/13/2025 04:10 PM Credit/Debit$40.00 98972337
12/23/2025 04:02 PM User Credit($40.00)98972337 12/23/2025 04:02 PM User Credit$40.00 99818294 01/14/2026
01:10 PM User Credit($40.00)99818294 01/14/2026 01:10 PM User Credit$40.00 TOTAL: $40.00
PROMPT RESPONSES
Location Facilities Date Days Multi Gen Center MGC Art Room-Seniors R119 01/29/2026 Thu
#1 -What is the name of your event?EX:John Doe Birthday Party
Apache Junction Parks&Recreation,AZ Facility Rental Permit PERMIT#7549 Page 1 Customer Initials:
Response:Bergman Neighborhood Rezone Meeting
Multi Gen Center MGC Art Room-Seniors R119 01/29/2026 Thu#2-What is the expected attendance for your group?(Must be less than
35)
Response:35
Multi Gen Center MGC Art Room-Seniors R119 01/29/2026 Thu#3-Is this reservation open to the public?"If the answer is yes,they will
need permission to move forward with reservation
Response:No
Multi Gen Center MGC Art Room-Seniors R119 01/29/2026 Thu#4-Please specify any special setup requests you may have(Not all
request are approved):
Response:Two tables along the south wall.Also set out five chairs around the room.
ON-CALL PARK RANGER PHONE#: 480-474-5418
Permittee agrees to comply with all federal, state, and municipal laws, rules, ordinances, regulations and
orders with respect to the use of facilities and occupancy thereof. Permittee, during the terms of this
permit, covenants and agrees to indemnify and hold harmless the city, its elected officials, employees and
agents from each and every loss, cost, damage and expense arising out of any occurrence causing injury
or death of persons or damage to property due to conditions of the rented premises or the use of neglect
thereof by Permittee. At the city's request, Permittee further agrees to provide, pay for and maintain public
liability insurance with both City and Permittee named as the insured, depending on the nature of the
facility rental. Permittee agrees that it will pay for any unusual wear, tear, breakage or damage to facility
occurring from the public or principals representing the Permittee. Should an inspection reveal damages,
Permittee shall reimburse the City for full costs necessary to restore facility to its condition prior to use by
Permittee. The City reserves the right to refund payments made in advance for the rental of any facility,
should the City decide the rental is not in the best interests, and cancel the use of the facility on the date or
dates specified in this permit. Additional fees may be charged to Permittee's account if the facility is found
to be damaged or not properly cleaned. Cancellations due to unforeseen weather conditions that make it
impossible to utilize the facility will be offered a credit, a transfer, or a partial refund (requests of this nature
must be made within 3 business days with the facilities office). If the Permittee chooses to cancel or move
their reservation for any other reason, a request for credit/transfer/refund must be made prior to the facility
rental date in order to receive a partial refund or transfer. All refunds granted will be minus 10% or$5,
whichever is greater.
Apache Junction Parks&Recreation,AZ Facility Rental Permit PERMIT#7549 Page 2 Customer Initials:
Permit is not transferable
Glass containers are prohibited.
Collecting distributing, or leaving food or other donated items is prohibited unless associated with an
approved special event
Permitee is responsible for conduct of group members
Picnic ramadas are on a first come basis, unless the group size is 25 or more, in which case
a reservation is required.
Permit is only valid for dates, times, and number of individuals described above.
Permitee must retain permit and make available upon request by city officials.
Permitee agrees to follow CDC/Arizona Health Department guidelines to insure proper
precautions related to COVD-19 are implemented and enforced among those participating in the
Permitee's reserved activity/space.
By signing below, I agree that I have read and understand the above
notifications/disclaimers. This facility does NOT allow alcohol.
I acknowledge that I have read and understand the above conditions. I also agree to indemnify and
hold harmless the City of Apache Junction from each and every loss associated with this permit.
Signature/Date of
Adult Participant/Parent/Legal Guardian
Apache Junction Parks&Recreation,AZ Facility Rental Permit PERMIT#7549 Page 3 Customer Initials:
REZONING NOTICE/LETTER/PLAN
275 S. CACTUS RD.
APACHE JUNCTION,ARIZONA 85119
The purpose of this Citizen Participation Plan/letter serves to inform
citizens, property owners, neighborhood associations, agencies, schools
and business in the vicinity of the site of an application for proposed
rezoning.
You are receiving this plan/letter as you are on on the contact list that
has been developed for citizens, agencies and businesses in the area
including : Property owners , Homeowners Associations, and
Neighborhood associations within 300 feet of the project.
The site for proposed rezoning from RS-10 -M to RS-GR is located at:
275 S Cactus Rd. Apache Junction, Arizona 85119 (APN 101-22-0680) The
potential rezone is aligned with the majority of the properties in the
area. Attached please find the site plan.
This plan/letter is to ensure that those who will potentially be affected
by this rezoning application will have sufficient opportunity to learn and
comment on the proposal. While we have met many of the recipients of
this letter prior to moving onto the property, we have not at any point
received any negative feedback personally. The city was contacted by
one property owner in lieu of speaking to us personally, regarding the
storage containers. We look forward to meeting with our neighbors for
discussions.
Currently, there is a storage unit on the property. Subsequently, in the
event of the proposed rezoning going through, a permit will be applied
for the remaining container and/or a garage. This structure will remain
at the back of the property (Southeast Section of the property) where it
will not impede the view of the Superstition Mountains of any of the
surrounding homes. The noise level will remain low and in accordance
with City of Apache Junction ordinance.
The Pre-Application submittal with the City of Apache Junction planning
was made on March 2025. Staff reviewed the application and
recommended that neighboring residents, nearby registered
neighborhoods, and nearby Homeowners Associations be contacted. At
the review, no departments were in opposition to this rezone. They do
reserve the right to comment at a later date.
This letter serves as an invitation to comment via the contact
information listed below. Additionally, a public meeting will be held for
comment and concerns on Thursday,January 29, 2026 from 4:00 p.m. -
6:00 p.m at the Apache Junction Multi-Generational Center located at
1035 N Idaho Rd, Apache Junction, AZ 85119 in room 119. There will be a
public posting notice to be placed at 275 S. Cactus Rd. for notification
purposes, also.
Our intent is to provide constructive citizen participation with this
meeting and application process.
Our contact information is as follows:
Kimberly Bergman: KimberlyLBer man(&gmail.com 602-579-3564
Eric Bergman EricRBergmanl9620gmail.com 602-672-7163
Hannah Bergman HEBergman9lOgmail.com 480-772-1306
The Pre-Application submittal with the City of Apache Junction planning
was made on March 2025. Staff reviewed the application and
recommended that neighboring residents, nearby registered
neighborhoods, and nearby Homeowners Associations be contacted. At
the review, no departments were in opposition to this rezone. They do
reserve the right to comment at a later date.
Pre-Application Submittal: March 2025
Pre-Application Comments: April 2025
Mailing of Notification letters :January 15, 2026
City Hearing: TBD
Sincerely yours,
Eric, Kimberly& Hannah Bergman
1860 N.THUNDERBIRD DR.APACHE JUNCTION,AZ 602-579-3564 KIMBERLYLBERGMAN@GMAIL.COM
Follow Up Report
101 -22-0680
275 S . Cactus Rd
Apache Junction , AZ 85119
The neighborhood rezoning meeting as held on January 29,2026
from 4-6 p.m. at Apache Junction Multi-Generational Center
located at 1035 N. Idaho Rd. Apache Junction, AZ 85119
The Neighborhood notice was mailed on January 15,2026. No
other additional notices were sent. Original letter attached.
Attached is the mailing label per the Assessor site.
There were 10 neighbors, plus two of the Cactus property owners
and our Planning and Zoning liaison, Hudson Meyer for a total of
13 in attendance.
The following concerns were addressed:
Request to rezone for "Commercial" It is unclear why the three of
the meeting attendees inquired about this as at NO time have we
ever discussed or written about in our neighborhood letter or in
person. We quickly assured the three attendees that this was not
the case, but a rezone to RS-GR so we may use the property in a
functional way.
Noise concerns were addressed.
As there are several vehicles that are diesel which can be noisier
than a conventional gas motor, it was clarified that these
vehicles were also for personal use, not left running and adhered
to noise code quiet times. Many local residents drive similar or the
exact same trucks as we do. It was also pointed out that the
current structure is approximately 50+ feet away from the
driveway and the driveway is another 30 feet to the Southern
fence line at the easement/driveway. More than most space
between residential driveways in varying neighborhoods.
Additionally, a forklift runs periodically, also 80+feet away from the
Southern fence line across the driveway. The forklift runs
occasionally to load material onto a truck. This takes less than 10
minutes on average. The decibel level for the forklift is similar to
a lawnmower. We have adhered to the noise ordinances with the
use of the forklift.
Drywall material is periodically delivered to the location by a semi
or a diesel truck. Said trucks are at the location 20 minutes more
or less. We instructed them to park on Cactus so as not to block
the Communal driveway. And they are delivering well inside of the
noise ordinance times. The complainants called the police
regarding noise one time but we were not sited for this.
Subsequently we bought a noise decibel meter to monitor the
situation.
Business being operated from the property was addressed.
We assured all involved that we were not operating our business
on site. As it was been confirmed that we store items both
personal and business but our Drywall business is addressed and
licensed at another property. The storage container stores drywall
material, small tools and other personal items. As everyone else
"drives" out of their driveway to work in the morning, the same is
said for us. There are occasions when we leave the property, we
have drywall materials for a job located elsewhere. We confirmed
that with meeting attendees that nothing is bought, sold or made
on the property.
Fire Hazard addressed:
As shown on the site map, which all attendees were mailed prior
to the meeting, the property has three entrances off the common
driveway. The fence line is five feet and easily accessible in the
event of a fire. We confirmed that at no point did we plan on
restricting the common driveway access. The current structure is
all metal and are a very low fire hazard. The drywall material
currently being stored is not flammable. Additionally, there is a
water spigot located in the yard near the storage containers if the
need ever arose.
The discussion of "neighborliness" was touched upon as the party
that complained at no point every made any effort to speak to us
about their concerns before complaints to the city were filed. All
other neighbors/attendees have never had any issues with us. We
have made the best effort to be good neighbors and will continue
to do so.
Hudson Meyer
From: Alice Barnes <twoyawhooz@yahoo.com>
Sent: Sunday, April 26, 2026 6:06 PM
To: Hudson Meyer
Subject: Fw: [External] Regarding Case# P-26-6-PZ
----- Forwarded Message-----
From: Alice Barnes <twoyawhooz@yahoo.com>
To: "twoyawhooz@mchsi.com" <twoyawhooz@mchsi.com>
Sent: Sunday, April 26, 2026 at 05:56:14 PM MST
Subject: Regarding Case# P-26-6-PZ
Alice Barnes/ Kim Hayes
305 S Cactus Rd
253-312-3083
twoyawhooz@yahoo.com
4/26/2026
Apache Junction Planning and Zoning Dept.
300 E Superstition Blvd.
Apache Junction, AZ 85119
Subject: Opposition to rezoning Case# P-26-6-PZ
275 S Cactus Rd
Apache Junction, AZ 85119
Dear members of the Planning and Zoning commission, and City Council.
We are property owners at 305 S Cactus Rd which is located withing 300FT of the property proposed for Rezoning in
Case# P-26-6-PZ.
We are writing to strongly oppose the proposal to rezone the site at 275 S Cactus Rd from RS-10M to RS-GR.
We believe this change is not in the best interest of our neighborhood for the following reasons.
NOISE
From Business equipment IE: Forklift, mixers, employee traffic all at random hours of the day. Our common fence is
barely 20 feet from the front of our home.
Our question is, Can Eric Bergman run a commercial business on that property. He does not reside there.
HORSES
The change from RS-10M to RS-GR will allow this property to become horse property and according to your code, that
means unlimited horses.
If horses are put on this property it would lower the value of our property due to the odors, pests, flies, etc. Because of the
close proximity of out adjoining property line. Not to mention the adjoining fence line with Weavers Needle Park that would
be a horrible intrusion to the winter visitors that help support this community.
NEIGHBORHOOD MEETING
we attended the neighborhood meeting on 1-29-2026 and voiced our concerns along with other neighbors. There were no
fixes offered by the Bergmans The only suggestion came from neighbors and us to have them build a noise dampening
wall if you are going to allow Mr. Bergman to run a commercial business off of that property. We were told that we have no
public access to the final report from the Bergmans in regards to the neighborhood meeting that you have received.
We are unable to attend the Planning and Zoning meeting on 4-28-2026. However we wanted our concerns on record.
1
We strongly urge the Commission to recommend denial of this rezoning request.
Sincerely,
Alice Barnes/ Kim Hayes
z
To: Hudson Meyer - Associate Planner 4/29/2026
Planning & Zoning Commission, Apache Junction AZ
Regarding P-26-6-PZ
My name is Paul J. Abrahamsen and I own three properties
within 300 feet of the parcel 101-22-0680 located at 275 S
Cactus Road which Kimberly Bergman is requesting to rezone
from Medium Density Single-Family Detached Residential (RS-
10M) to General Rural Low Density Single-Family Detached
Residential (RS-GR). Note: I am in favor of the zoning change!
My three properties are:
1) 303 S Cactus Road, Apache Junction, AZ 85119
2) 1226 E 4T" Avenue Apache Junction, AZ 85119
3) 1250 E 4t" Avenue Apache Junction, AZ 85119
Note: My son & I attended the public hearing for P-26-6-PZ
yesterday. But might not be able to attend the next one on June
2, 2026. Thus, I am sending this Email. Any questions? My cell
is 602-717-3789 Once again: I am in favor of the zoning change!
Hudson Meyer, Associate Planner
City of Apache Junction
Re: P-26-6-PZ"275 S. Cactus Rezoning"
Mr. Meyer,
This letter is a follow up to my letter and our emails from earlier this month. I have just now
been able to review the documents related to the P-26-6-PZ"275 S. Cactus Rezoning"
public hearing scheduled for this evening. Unfortunately, I am unable to attend tonight's
meeting due to prior commitments. From the review, I wish to add the following comments;
1) The storage area at the back of the property is within 15'of the fence bordering
Weaver's Needle RV Park. During the winter months this part of the Park is filled with
guests who have been impacted by the ongoing business operation started on this
property. This past winter there were many complaints by the residents of excessive
noise on this property. On a couple of occasions Code Compliance was called and
visited this property over noise and other complaints. Is it possible to have the Code
Compliance officers' reports made a part of this record?
2) It is clear from the documents presented by the applicant that a storage or
warehouse business is being operated here. It defies common sense to state
otherwise when the applicant states that occasionally semi-trailer trucks will
unload drywall and other business-related material for storage for the applicant's
business. The narrative relates that this business is intended to be ongoing. The
General Plan and subsequent zoning of this property never envisioned a storage
business being operated here.The city streets in this area are not built for regular
use by semi-trailers, for example.
3) The Fire department's concerns should not be understated. The storage container
and stored materials will be within 20 feet or so of RV units that would have to be
moved on an emergency basis in case of fire.
4) In reading the narrative for this application, it was indicated that this zoning change
was to in effect legalize how the property is being used today rather than an effort to
bring the property into compliance with the City Code. It sets a bad precedence.
Included are some pictures from the Weaver's Needle fence line. The nature of the use
of this portion of the property is clear.
■ YID � _
A
i
I object to this zoning request if business use is permitted. Please enter this into the public
record.
Best regards,
Stephen J. Harshman
250 S Tomahawk Rd Spc 98
Apache Junction, AZ 85119
Cell: 847-217-8619
Hudson Meyer
From: HANK DALLAS <dallasdabbas@msn.com>
Sent: Friday, May 8, 2026 6:32 PM
To: Hudson Meyer
Subject: [External] Case# P-26-6-PZ
Hi My name Hank Dallas I live in 210 S cactus rd Apache Junction Z 85119 lam friend with my neighbor Eric Bergman his
property 275 S cactus rd Apache Junction Az 85119 cross to my property and he is good neighbor and good family and I
never have any complain from my neighbors we live peaceful neighborhood and all respect neighbors and I'm support
my neighbor Eric Bergman to rezone his property 275 S Cactus rd Apache Junction Az 85119 Thank you Hank Dallas
210 S cactus rd Apache Junction Arizona 85119 phone#
4805803392
Sent from my iPhone 4805803392
i
Hudson Meyer
From: Craig Harmon OPP <fightjudge@mail.com>
Sent: Monday, May 11, 2026 10:01 AM
To: Hudson Meyer
Subject: [External] P-26-6-PZ 275 5 Cactus Rd
I am writing in support of the rezoning request P-26-6-PZ by Eric & Kimberly Bergman.They want to
combine their 3 lots into a 1.25 acre lot changing the zoning from Medium Density SFD residential to
General rural low Density SFD residential. I have no problem with their request and encourage AJ P&D
and City Council to approve their request.
I live just west of their property on Belair.
Sincerely
Craig Harmon
175 S Belair Rd
480-773-8441
Sent from my Android phone with mail.com Mail. Please excuse my brevity.
i
'75 S Cactus Road
P 26m6mP7
City of Apache Junction
City Council Work Session
June 1, 2026
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Case Summary
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of ID UTTO P
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of approximately 1 .25 gross
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Current Zoning:
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Medium Density Single
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properties
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South : Three "RS-10M"
North : Three " -10M"properties
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East : Weaver"s Needle RV
Resort zoned Recreational
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Current Land Use Weavers Needle Dr
Designation : Fullerton Dr
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Designation : General
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TransportationCommercial
Light Industrial/Business Park and Industrial
Open
297'
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30 foot Easment 5' Chain Link �� 5' Chain Link
Fence - - Fence
Public Input
• The applicant has complied with the public notification requirements, including a sign
posting, mail notification, and a newspaper posting .
• A neighborhood meeting for the case was held at the Apache Junction Multi -Generation
Center on Thursday, January 29, 20266
• Ten neighbors attended the meeting to discuss the proposed rezoning and how the nature of the
property may change .
• Staff has received comment via email from 5 residents, three in support and
two opposed to the rezoning .
• Staff has received a follow-up from one of the objectors noting that their concerns have been
addressed and they no longer object to the rezoning.
A '11,111 1111 1
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Staff Recommendation
• Planning Staff recommends the approval of P- 26-6- PZ, finding that the proposed
rezoning brings the zoning of the property more in line with that of similar parcels in the
a rea .
Planning and Zoning Commission Recommendation
• On May 12, 2026, the Planning and Zoning Commission evaluated the Rezoning proposal
and voted 6-0 to forward P-26-6- PZ to the Apache Junction City Council with a
recommendation of approval subject to the conditions of approval found in the Staff
Report .
Thank You
40
City Council Public Hearing :
Tuesday , June 16 , 2026
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►P�"E�c�, City of Apache Junction, Arizona 300 E Superstition
Boulevard
� 0 Agenda Item Cover Sheet Apache Junction,AZ
85119
Agenda Item No.6.
'Piz File ID: 26-271
Sponsor: Chip Wilson and Darryl Cross Agenda Date: 6/1/2026
Index: In Control: City Council Work Session
Presentation and discussion on livestock feed as part of the Model City Tax Code (MCTC).
City of Apache Junction,Arizona Page 1 Printed on 512812026
7f
City of Apache Junction
Home of the Superstition Mountains
DATE: MAY 18, 2026
TO: MAYOR AND CITY COUNCIL MEMBERS
THROUGH: BRYANT POWELL, CITY MANAGER
FROM: ROB WISLER, ASSISTANT CITY MANAGER
SUBJECT: LIVESTOCK FEED AS PART OF THE MODEL CITY TAX CODE (MCTC)
Purpose
Mayor Wilson and Councilman Cross have requested to discuss the transaction privilege
tax (TPT, commonly referred to as sales tax) on livestock/poultry feed. The City elected to
collect this tax as part of the City's Tax Code in 1979. This item will be on the May 18t"
Work Session agenda and, if Council desires to proceed, Staff will schedule the item for
Direction to Staff at a future City Council meeting.
Background/Discussion
Just after the City was established in January 1979, one of the first ordinances, Ord. No.
4, enacted a 1% TPT on every transaction in the City that wasn't pre-empted by State or
Federal Law. This included "selling any tangible personal property - personal property
which may be seen, weighed, measured, felt, touched, or is in any other manner
perceptible to the senses - whatsoever at retail or to the ultimate consumer." Though
livestock feed is not directly mentioned, this very broad definition does cover it. No State
Law exempted the City from charging it. In 1987, the State adopted the Model City tax
Code (MCTC), a standardized TPT system for all Cities and Towns to follow. This system is
far more categorical than the original tax code utilized by the City and also creates
several local options that cities may elect or elect not to charge. When the City Council
adopted the MCTC with Ord. No. 588, the old tax code was applied to the new MCTC
model, which included livestock feed. Though there have been changes in the MCTC
since, none has impacted livestock feed, which remains in effect today. A business that
opened in the 2010s was found to be out of compliance in not paying the TPT on livestock
feed; the City addressed the issue, and the business subsequently came into full
compliance.
In 2016, the State Legislature eliminated the State TPT for livestock and poultry feed. This
had no impact on the Citywide TPT.
Livestock feed is included in the TPT retail category and there is no way to break apart
the category for analysis to understand what the fiscal impact would be to the City if it
were to be eliminated.
Next Steps
If Council wishes to proceed, staff will place the item for Direction to Staff at the June 2nd
Council Meeting.
Public Input
This item will require an ordinance and public hearing before Council action.
Attachments
Staff have attached to Legistar for reference Ord. No. 4, Ord. No. 588, and minutes of the
September 1, 1987 City Council Meeting
r
ORDINANCE NO. 4
AN ORDINANCE OF THE CITY OF APACHE JUNCTION,
ARIZONA IMPOSING AND LEVYING A TRANSACTION PRIVILEGE
TAX, AS AUTHORIZED BY THE CONSTITUTION OF THE STATE OF
ARIZONA, AR`1'ICLE 9, SECTION 6.
8-5 BUSINESS 8-5-1
Article 8-5 TRANSACTION PRIVILEGE TAX
8-5-1 Definitions
8-5-2 Permit Requirements
8-5-3 Imposition of Tax -- Tax Schedule
8-5-4 Exemptions
8-5-5 Administration and Procedures
8-5-6 Assessment and Appeal
8-5-7 Violations
Section 8-5-1 Definitions
In this article unless the context requires otherwise.
A. "Assembler" means a person who unites or combines products, wares or
articles of manufacture so as to produce a _change in form or substance
without changing or altering the component parts. This definition
shall not be interpreted to include activities listed in paragraphs
2, 3, 4, 5, 8 and 9 of Section 8-5-3 (A) of this article.
B. "Auditor" means any citeemployee or agent authorized by the tax collector
to audit records of a person subject to the tax specified by this chapter
and may include an employee of another city or town.
C. "Business" includes all activities or acts, personal or corporate,
engaged in and caused to be engaged in with the object of gain., benefit
or advantage, either director indirect, but not casual activities
or sales.
D. "Contracting" means engaging in business as a contractor..
E. "Contractor" means a person who, for either a fixed sum, price, fee,
percentage, bonus or other compensation other than actual wages, undertakes
to or offers to undertake to, or purports to have capacity to undertake
to, or submits a bid to, or does himself or by or through others, construct,
alter, repair, add to, subtract from, improve, move, wreck or demolish
any building, highway, road, railroad excavation or other structure,
project, development or improvement, or to do any part thereof, including
the erection of scaffolding or other structures or works in connection
therewith. The term "contractor" includes subcontractors, specialty
contractors, developers and speculative builders.
F. "Engaging", when used with reference to engaging or continuing in business,
means the exercise of corporate or franchise powers.
8-5-1 BUSINESS 8-5-1
G. "Gross income" means the gross receipts of a taxpayer derived from
trade, business, com-nerce or sales and the value proceeding cr accruing
from the sale of tangible personal property or service, or both, and
without any deduction on account of losses.
H. "Gross proceeds of sales" means the value proceeding or accruing from
the sale of tangible personal property without any deduction on account
of the cost of property sold, expense of any kind, or losses,. but cash
discounts allowed and taken on sales shall not be included as gross
income; "gross income" or "gross proceeds of sale" shall not be construed
to include goods, wares or merchandise, or value thereof, returned
by customers when the sale price is refunded either in cash or by credit,
nor the sale of any article accepted as part payment on any new article
sold, if and when the full sale price of the new article is included
in the "gross income" or "gross proceeds of sales", as the case may
be.
I. "Gross receipts" means the total amount of sale, lease or rental price,
as the case may be, of the retail sales of retailers, including any
services that are a part of the sales, valued in ;Honey, whether received
in money or otherwise, including all receipts, cash, credits and property
of every kind or nature, and any amount for which credit is allowed
by the seller to the purchaser, without any deduction therefrom on
account of the cost of the property sold, materials used, labor service
performed, interest paid, losses or any other expense. The term does
not include cash discounts allowed and taken or the sale price of property
returned by customers, when the full sale price thereof is refunded
either in cash or by credit.
J. "Hotel" means any public or private hotel, inn, hostelry, tourist home
or house, motel, rooming house, apartment house, trailer or other lodging
place within the City of. Apache Junction offering, lodgina; -arherein ,the owner
and operator thereof, for compensation, furnishes lodging to any transient,
except foster homes, rest homes, sheltered care homes, nursing .homes
or hospitals.
K. - "Lodging" and "lodging space" means the use or possession, or the right
to the use or possession, of any room or apartment in a hotel, or the
right to the use or possession of the furnishings or to the services
and accommodations accompanying the use and possession of the room,
including storage or parking space for the property of a transient.
L. "Manufacturer" means a person who is principally engaged in the fabrication,
production or manufacture of products, wares or articles for use from
raw or prepared materials, imparting to such materials new forms, qualities,
properties or combinations. This definition shall not be interpreted
to include activities listed in paragraphs 2, 3, 4, 5, 8 and 9 of Section
8-5-3 (A) of this code.
8-5-1 BUSINESS 8-5-1
M. "Modifier" means a person who reworks, changes or adds to products,
wares or articles of manufacture. This definition shall not be interpreted
to include activities listed in paragraphs 2, 3, 4, 5, 8 and 9 of Section
8-5-3 (A) of this code.
N. "Notice" means a written instrument served by the town as follows,
with time commencing from date of mailing, serving, filing or recording:
1. By registered or certified mail to the last known address of the
person to whom it is required to. be given; or
2. By personal service upon the person or his lawful representative;
or
3. By filing or recording with a clerk of the superior court or a
county recorder.
0. "Owner-builder" means a person who owns or leases real property within
the City acting as a contractor in constructing any improvement upon
the real property 'Which real property ,as improved is held by such person
for his use or for rental purposes. An owner-builder who sells such
real property as improved at any time on or before the expiration of
twenty-four months after an occupancy permit for such improvemen't. is
issued, or if no permit is issued, within twenty-four months after
final inspection of the improvement or when the improvement is completed,
whichever is later, shall be treated as a "prime contractor" for purposes
of this article. For purposes of this definition, a "sale" of real
property as improved includes any form of transaction whether characterized
as a lease or otherwise which in substance is a sale and J ncludes. any
lease of the improvement for a term of thirty years or more with all
options for renewal being included as a part of the term.
P. "Permanent resident" means any person who, as of a given date, has
occupied lodging space or has paid or become obligated to pay for the
right to occupy lodging space, in a particular hotel for the thirty
consecutive days next preceding such date, or has signed and performs
under a lease.
Q. "Person." or "company", herein used interchangeably, means an individual ,
officer, agent, firm, partnership, joint venture, association, corporation,
estate, trust or any other group or combination acting as a unit, and
the plural as well as the singular number, unless the intent to give
a more limited meaning is clearly intended by the context.
R. "Prime contractor" means a contractor which the owner or lessee of
the real property being improved treats as being responsible for admin-
istration, construction and completion of the improvement. For purposes
of this definition, a person who, for either a fixed sum, price, fee,
percentage, bonus or other compensation other than actual wages, undertakes
to or offers to undertake to, or submits a bid to, or does himself
or by or through others, supervises the construction of the improvement,
or coordinates the construction of the improvement, or both, is a' prime
contractor, unless such supervisor or coordinator demonstrates, to
8-5-1 BUSINESS 8-5-1
the City s satisfaction, that another contractor is, in fact, the prime
contractor for the improvement; provided, a person acting on behalf
of an owner-builder rendering -consulting services shall -not be regarded
as a prime contractor if:
1. Such person does not guarantee a maximum price for the improvement
to the owner-builder;
2. Such person does not contract with contractors constructing the
improvement; and
3. Such person is not responsible to the owner-builder for the admin-
istration, construction and completion of the improvement.
S. "Repairer" means a person who restores or renews products, wares or
articles of manufacture. This definition shall not be interpreted
to include activities listed in paragraphs 2, 3, 4, 5, 8 and 9 of
Section 8-5-3 (A) of this article:
T. "Retailer" means every person engaged in the business of making sales
at retail, and when in the opinion of the tax collector it is necessary
for the efficient administration of this article, includes dealers,
distributors, supervisors and employers, and salesmen, representatives,
peddlers or canvassers as the agents of such 'dealers, distributors,
supervisors or employers under whom they operate or from whom they
obtain the tangible personal property sold by them, whether in making
sales on their own behalf or on the behalf of such dealers, distributors,
supervisor or employers.
U. "Retail sale" or "sale at retail" means a sale for any purpose other
than for resale in the form of tangible personal property but the
. expressions of "transfer of' possession", "lease" and "rental" as used
in the definition of "sale", mean only such transactions as are found
upon investigation to be in .lieu of sales as defined without the words
"lease" or "rental".
V. "Room rental" means the total charge,' exclusive of all federal, state
and municipal taxes, made by any hotel for lodging or lodging space
furnished any transient. If the charge made by such hotel to such
transient includes any charge for services or accommodations in addition
to that of lodging, or the use of lodging space, then such portion
of the total charge as represents only room or lodging space rental
shall be distinctly set out and billed to such transient by such hotel
as a separate item.
W. "Sale" means any transfer of title or possession, or both, exchange,
barter; lease or rental, conditional or otherwise, in any manner or
by any means whatsoever, of tangible personal property, for a consideration
or any agreement therefor, and includes, but is not limited to:
1. Any transaction whereby the possession of property is transferred,
but the seller retains a security interest for the payment of the
purchase price.
4
8-5-1 M)lNtSS b-S-C
2. The fabrication•of tangible personal property for consumers who
furnish either directly or indirectly the materials used in the
fabrication work, where such fabrication is customarily included
in the sale price of similar tangible personal property sold to
consumers.
3. The furnishing, preparing or serving for a consideration of any
tangible personal property consumed on the premises of the person
furnishing, preparing or serving such tangible personal property.
X. "Stock" means the goods and wares of a person kept for sale and traffic,
and for the, purpose of this article shall include, but not be limited
to all tangible personal property specially ordered for any customer,
if for any reason such specially ordered property is brought into the
City prior to completion of the sale.
Y. "Tangible personal property" means personal property which may be seen,
weighed, measured, felt, touched or is in any other manner perceptible
to the senses.
Z. "Tax collector" means the Council of the City of its authorized
agent.
AA. "Taxpayer" means any person liable for any tax imposed by this article.
BB. "Transient" means any person who, for any period of not more than
thirty days, either at his own expense or at the expense of another,
obtains lodging or the use of any lodging space in any hotel for which
lodging or use of- lodging space a charge is made.
CC. "Wholesaler" or "jobber" means any person who sells tangible personal
property for resale by a licensed retailer and does not sell tangible
personal property for consumption by the purchaser. When a person
normally selling for resale makes any sale at retail or for consumption
by the purchaser, such person is defined as a "retailer" for purposes
of this article.
Sec. 8-5-2 Permit Requirements
A. Every person having a gross proceeds of sales or gross income upon
which a privilege tax is imposed by this article desiring to engage
in or to continue in business activities within the town shall make
application to the tax collector for a transaction privilege permit,
accompanied by a fee of two dollars, and no person shall engage in
business or continue in business within the town until he shall have
such a permit. This fee shall become effective for all new permits
at the start of the day on which this article becomes effective.
Previously existing privilege licenses shall be considered to be trans-
action privilege permits for the purposes of this article.
-7-L DUJ111C33 O-J-L
B. Application for privilege permits required under this article shall
be made upon, forms prescribed by the tax collector.
C. It shall be a condition precedent to issuance of a permit that all
provisions of this code, ordinances, regulations and requirements
affecting the public peace, health and safety be complied with in toto.
D. The privilege permit required by Section 8-5-2 (A) shall be good so
long as all returns and tax payments are made as required by this
article.
E. Upon the failure of any person to pay the required tax, penalty and
interest within a period of thirty days after it becomes due, the tax
collector may give such person notice of intent to cancel the privilege
permit. If the person so notified requests a hearing within ten days
from notice, he shall be granted a hearing before the tax collector.
Upon a finding by the tax collector that tax, penalty and interest
is unpaid and has remained unpaid at least thirty days, or if no request
for hearing has been received within ten days after notification as
herein provided, the privilege permit shall be cancelled and such
permit shall not be reissued untiI-all such taxes, penalty and interest
due shall have been paid.
F. Any person whose privilege permit has been cancelled shall be required
to pay a fee of twenty-five dollars for each reissue of a permit and
such permit shall not be reissued until all taxes, penalties and interest
have been paid. The tax collector may, at his discretion, reissue
under the previous permit number or issue a new permit.
G. A person engaged in or conducting taxable business in two or more
established locations within the City shall be required to obtain a
separate permit for each location, except that for the business of
leasing or renting the use or occupancy of real property, only one
application for such property within the City shall be required; however,
the applicant shall be required to list' all such property by street
address or other satisfactory identification and shall notify the tax
collector within ten days after sale or acquisition of any such real
property, clearly identified by location in such instance.
H. At the time a taxable business is sold, or when any other ownership.
change occurs, a new privilege permit shall be obtained for each permit
effective at the time of such change.
I. Any person holding a privilege permit shall be required to notify the
tax collector of any change in either mailing address or location
within fifteen days after such change occurs. A fee of one dollar
shall be .required whenever any change in location of a business within
the City occurs.
J. The permit prescribed in Section 8-5-2 (A) shall be nontransferable
and shall be displayed in some conspicuous part of the applicant's
place of business.
8-5-3 BUSINESS 8-5-3
Sec. 8-5-3 Imposition of Taz -- Tax Schedule
There is hereby levied and shall be collected by the tax collector for
the purpose of raising revenue to be used in defraying the necessary expenses
of the City, privilege taxes measured by the amounts or volume of business
transacted by persons on account of their business activities, and in the
amounts to be determined by the application of rates against values, gross
proceeds of sales or gross income, as the case may be, in accordance with
the following schedule:
A. Percentage of tax and business liable to taxation. An amount equal
to one percent of the gross proceeds of sale or gross income from the
business upon every person engaging in or continuing within the City
in the following businesses:.
1. Transporting for hire persons or property by any means of transportation,
from a point within the City to another point within the City or
from a point within the City to another point within the State
of Arizona; provided, that the levy shall not apply to common or
contract carriers paying a tax under the provisions of Arizona
Revised Statutes Section 40-641 .
2. Mining, quarrying, smelting or producing for sale, profit or commercial
use, any oil, natural gas, limestone, sand, gravel, copper, gold,
silver or other mineral product, compound or combination of mineral
products, or felling, producing or preparing timber or any produce
of the forest for sale, profit or commercial use. In computing
the tax, the price shall be reduced by the actual freight paid
by any person from the place of production to the place of delivery
when the .freight is included in the sale prices of the products.
3. Producing and furnishing, or furnishing to consumers, electricity,
electric lights, current, power or gas, natural or artificial,
and water.
4. Transmitting local or long distance messages or conversations by
telephone, or messages by telegraph, from a point within the City
to another point within the State of Arizona, including gross
income derived from tolls, subscriptions and services on behalf
of subscribers, or by publication of a directory of the names of
subscribers.
5. Operating a pipe line for transporting oil, or natural or artificial
gas, through pipes or conduits from a point within the City to
another point in the City or in the state.
6. Operating private railroad car lines, as they are defined in Title
42, Chapter 4, Article 3, Arizona Revised Statutes, from one point
within the town to another point in the City or state.
1
8-5-3 BUSINESS 8-5-3
7. Publication of newspapers, magazines or other periodicals and
publications, when published within the City, including the gross
income derived from advertising, notices and subscriptions sold
within the City : Subscriptions sold within the City for newspapers,
magazines or other periodicals and publications published without
the town shall also be taxable under this section, and advertising
sold within the town shall likewise be taxable.
8. Job printing, engraving, embossing and copying, advertising by
billboards, direct mail, radio, television or by any means calculated
to appeal to prospective purchasers or users.
9. The contracting business or acting as a prime contractor, or both.
a. For purposes of this classification, there shall be subtracted
from the gross income, gross ;proceeds of sale or gross receipts
subject to the privilege tax, a deduction in the amount of
thirty-five percent of said gross income, gross proceeds of
sale or gross receipts in lieu of any labor, Shop or subcontractor
deductions. Subcontractors or others who perform services
in respect of the improvement, building, highway, road, railroad,
excavation or other structure, project, development or improvement
(hereinafter "job") are exempt from the privilege tax. on their
gross income, gross proceeds of sale or gross receipts derived
from the job if they can demonstrate to the City's satisfaction
that the job was within the control of a prime contractor or
prime contractors and that such prime contractor paid or should
have paid the privilege tax upon the gross income, gross proceeds
of sale or gross receipts attributable to the job and from
which the subcontractors or others were paid.
b. An owner-builder, who is not a prime contractor, shall pay
the privilege tax or use tax, as the case may be, upon the
sales to him or to his account of all tangible personal property
incorporated or fabricated into any structure, project, development
or improvement undertaken by him; provided, if the owner-builder
is treated as a prime contractor for privilege tax purposes,
he shall deduct from the gross income, gross proceeds of sale
or gross receipts derived from the sale (as defined under owner-
builder) of the real property as improved by him:
(1) An amount of thirty-five percent of said gross income,
gross proceeds of sale or gross receipts in lieu of any
labor, shop or subcontractor deductions;
(2) Either a tax credit equal to the amount of privilege or
use tax, or the equivalent tax, paid to the City of Apache Junction
or another city or town in respect of the tangible personal
property incorporated or fabricated into the said structure,
.project, development or improvement undertaken by him;
and
8-5-3 BUSINESS 8-5-3
(3) A tax credit equal to the amount of privilege taxes paid
by the contractor or subcontractors to the City of Apache Junction
on the gross income, gross proceeds -of sale or -gross
receipts derived by the contractor or subcontractor from
the construction of the improvement upon the real property
owned or leased by the owner-builder and sold by him.
c. Reporting by contractors. Contractors shall report on a progressive
billing basis or cash receipts basis, but home builders, .speculative
or otherwise, and owner-builders shall report as gross income,
gross proceeds of sale or gross receipts the total selling
price at the time of closing of escrow or transfer of title.*
d. Deductions allowable and pertaining to the gross income, gross
proceeds of sale .or gross receipts may not be taken prior to.
the time that said proceeds or receipts are reported.
10. Restaurants, dining rooms, lunchrooms, lunch stands, soda fountains,
bars, taverns or similar establishments where articles of food
or drink are sold, and catering or sale of food and drink from
mobile units within the town. Articles of food or drink prepared
for service or resale by another person may be deducted, providing
that the -person reselling has a valid privilege permit for such
purpose.
11. Selling at retail such property used by human beings for food,
drink or condiment, whether simple, mixed or compound, where such
property is not customarily sold for consumption on .the premises
commonly and generally known as the business of selling groceries
at retail .
The sale to hotels, restaurants, lunchrooms, boarding houses or
similar establishments of articles used by human beings for food,
drink or condiment, whether simple, mixed or compounded, where
such articles are customarily prepared and served to patrons for
consumption on the premises; -shall be deemed wholesale sales as
to such commodities, providing that the person reselling has a
valid privilege permit for such purpose.
12. Selling any tangible personal property whatsoever at retail or
• to the ultimate consumer, including but not limited to sale of
new and used vehicles of any type, and sales made from mobile units
when within the town'. Gross receipts from painting signs on structures
within the town or upon vehicles while within the town shall be
taxed as retail sales, without deduction. Sales of tangible personal
property within the State of Arizona which result from activities
of agents or representatives of a person whose principal office
within Arizona is within the City of Apache Junction shall be taxable,
provided that delivery is made from the City..
8-5-3 BUSINESS 8-5-3
13. Operating or conducting amusements including but not limited to
theaters, movies, operas, exhibitions, concerts, carnivals, circuses,
shows of any type or nature, amusement park admissions, amusement
rides, menageries, fairs, races, contests, games, golf courses,
tennis courts, batting or driving ranges, riding on any animals,
juke boxes, pinball machines, billiard and pool parlors, bowling
alleys, dance halls, public dances, boxing or wrestling matches,
or any other business charging admission fees for exhibition or
amusement. Nonprofit -private clubs where basic membership fees
cover use of amusement facilities, and amusements conducted by
the organizations themselves on an occasional basis to raise funds
for projects of bona fide religious organizations, nonprofit educational
institutions and nonprofit fraternal or. service clubs are exempt.
14. Leasing or renting for a consideration any tangible personal property;
sales of tangible personal property to be so leased or rented shall
be deemed to be resale sales.
15. Leasing or renting for a consideration the use or occupancy of
real property, including any improvements, rights or interest in
such property.
B. Basis for taxation under certain conditions.
1. In determining value as applied to sales from one to another person,
or other circumstances where the relation between the buyer and
seller is such that the gross proceeds from the sale are not indicative
of the true value of the subject matter of the sale, the council
may prescribe uniform and equitable rules for determining the value
upon which the tax herein levied shall be based, corresponding
as nearly as possible to the gross proceeds from the sale of similar
products of like quality or character of other taxpayers where
no common interest exists between the buyer and seller, but otherwise
under similar circumstances and. conditions.
2. For the purpose of computing the tax by this article, "conditional
or time sales" shall be treated as credit sales and tax shall be
based only upon the amounts received under such security agreements,
but if the seller transfers his interest in such agreements to
a third person, he shall pay an amount based upon the .full sale
price of the commodity, unless a record is kept of payments thereafter
made on the contract in such. manner that the tax collector may
at all times ascertain from the records of the seller the amount
paid thereon by the purchaser. . Af at any time the tax collector
cannot ascertain the amount paid thereon, the tax shall be computed
to include any amounts not shown to be paid by the records ,of the
seller to the satisfaction of the tax collector.
3. When any person is engaged in an occupation or business to which
Section 8-5-3 is applicable, such person's books shall be kept
so as to show separately the gross proceeds of sale of tangible
personal property and the gross income from sales of nontaxable
service, and if not so kept, the tax shall be based upon the total
of such person's gross proceeds of sales of tangible personal
property and gross income from service.
8-5-4 BUSINESS 8-5-4
4. When any person is engaged in the business of selling tangible
personal property at both wholesale and retail, the retail rate
shall be applied only to the gross proceeds of the sales made other
than at wholesale when such person's books are kept so as to show
separately the gross proceeds of sales of each class, and when
such books are not so kept, the retail rate shall be applied to
the gross proceeds of every sale so made.
5. For the purpose of Section 8-5-3, the total amount of gross income,
gross receipts or gross proceeds of sale shall be deemed to be
the amount of the sale, exclusive of the tax imposed by Section
8-5-3, providing the person upon whom the tax is imposed shall
establish to the satisfaction of the tax collector that any tax
collected from customers has been added to the sale price and not
absorbed by him.
Sec. 8-5-4 Exemptions
The following shall not be subject to taxation under this article:
A. Any business, calling, profession or occupation where the general law
of the State of Arizona or general law of the United States of America
preclude the levying of such a tax.
B. Sales in interstate or foreign commerce when prohibited from being
so taxed by the Constitution or general laws of the United States or
by the Constitution of the State of Arizona.
C. Professional services, instruction and other services not connected
with the making of retail sales.
D. Contracting, retail sales and any other taxable activity for the City
of Apache Junction.
E. Sales of gasoline upon which a tax has been imposed under the provisions
of Title 28, Chapter 9, Article 9, Arizona Revised Statutes.
F. Sales of tangible personal property to a person licensed as a contractor
under Title 32, Chapter 10, Arizona Revised Statutes, who holds a valid
privilege tax permit for engaging in or continuing in the business
of contracting when the property so sold is incorporated or fabricated
by the contractor into any structure, project, development or improvement
in fulfillment of a contract therefor.
G. Sales of tangible personal property made directly to the United States
Government, its departments or agencies, by the manufacturer, modifier,
assembler or repairer. A deduction of fifty percent shall be permitted
where such sales are made by persons other than those specified in
the previous sentence.
8-5-4 BUSINESS 8-5-4
H. Sales of tangible personal property by persons engaging in or continuing
in the business of processing, manufacturing, fabricating, modifying,
assembling or repairing, when such sales are made for resale and not
at retail and not to an ultimate consumer.
This subsection shall not apply to any sales of tangible personal property
which are not the same as or similar to tangible personal property
sold through distributors, jobbers, wholesalers, retailers or other
persons than those substantially and principally engaging or continuing
in the actual manufacturing, processing, fabricating, modifying or
assembling thereof.
I. Sales of tangible personal property to manufacturers, modifiers, or
assemblers where such property directly enters into and becomes an
ingredient or component part of any manufactured, fabricated or processed
article, substance or commodity for sale in the regular course of business.
J. Services provided in connection with retail sales if invoices to the
customer, sales tickets, cash register tapes and all other business
records show separate charges for such services. This exemption shall
apply only where such service is not customarily included in the retail
sale itself and where such service is not an essential element in the
retail sale itself. No deduction shall be allowed for fabrication
labor of retail items sold.
K. Sales of tangible personal property in which all of the following occur
without the City limits of the City of Apache Junction.
1. The placement of the order.
2. The stock from which delivery was made.
3. The transference of title and possession.
For the purposes of this exemption, any person engaging or continuing
in the business to which this exemption is applicable shall maintain
and keep accounting records or books indicating separately the gross
proceeds of sale or gross income of tangible personal property which
occur without the town limits, and if not so maintained the tax to
be imposed will be upon the total of such person's gross proceeds of
sale or gross income.
L. The sale of drugs on the prescription of a member of the medical,
dental or veterinary profession who is licensed by law to administer
such drugs.
M. All personal property purchased in this City by any hospital organized
and operated exclusively for charitable purposes, no part of the net
earnings of which inures to the benefit of any private shareholder
or individual, or operated by the state or any political subdivision
of this state.
8-5-5 BUSINESS 8-5-5
N. The sale of stock and bonds.
0. Sales of machinery or equipment to be used directly in manufacturing,
processing, fabricating, job printing, refining or metallurgical operations,
including leaching, milling, precipitating, smelting and refining.
P. Sales of machinery or equipment to be used directly in the process
of extracting ore or minerals from the earth for commercial purposes,
including equipment required to prepare the materials for extraction
and for the handling, loading or transportation of such extracted
material to the surface.
Q. Sales to telephone or telegraph companies of central office switching
equipment, switchboards, private branch exchange equipment, microwave
radio and carrier equipment and coaxial cable.
R. Sales of machinery, equipment or transmission lines to be used directly
in the production or transmission of electrical power, but not for
such machinery, -equipment or transmission lines that are to be used
for distribution and not for transformers and control equipment to
be used at transmission substation sites.
S. Sales of pipes or valves four inches in diameter or larger to be used
for transporting oil , natural gas, artificial gas, water or coal slurry.
T.' Sales of aircraft, navigational and communication instruments and other
accessories and related equipment to be used in conjunction with or
to become part of aircraft to be used in the transportation of persons,
property or U.S. Mail in intrastate, interstate or foreign air transportation
for hire by airlines holding a federal or state certificate of public
convenience and necessity or holding a foreign air carrier permit.
U. Sales of railroad rolling stock, rails, ties and signal control equipment
to be used directly in the transportation of persons or property in
intrastate or interstate transportation for hire.
V. Sales of machinery or equipment to be used directly in the drilling
for oil or gas or used directly in the process of extracting oil or
gas from the earth for commercial purposes.
Sec. 8-5-5 Administration and Procedures
A. Vested administration and payment of tax. The administration of this
article is vested in and exercised by the City of Apache Junction, except
as otherwise specifically provided, and all payments shall be madeto the
City of Apache Junction. If payment is made in any other form than
money which is legal -tender in the State of Arizona and the United
States of America, the tax obligation shall not be ended until the
check, bank draft or money order has been honored by the person on
whom drawn:
8-5-5 BUSINESS 8-5-5
B. Presumption that all gross receipts are taxable. For the purpose of
the proper administration of this article and to prevent evasion of
the tax hereby imposed, it shall be presumed that all gross receipts
are subject to the tax until the contrary is established by the person
seeking the exemption from said taxation.
C. Burden of proving sale was not at retail. The burden of proving that
a sale of tangible personal property was not a sale at retail shall
be upon the person who made it, unless such person shall have taken
from the purchaser a certificate to the effect that the property was
purchased for resale.
D. Tax imposed is cumulative and supplemental to others. The tax imposed
by this article shall be cumulative and supplemental to all other taxes
levied by law.
E. Records of taxpayer. It shall be the duty of -every person engaging
or continuing in business activities within this town for which a '
privilege tax is imposed by this article to keep and preserve for a
minimum of three years, suitable records of the gross income, gross
receipts of sales, invoices for goods and merchandise purchased and
sold, resale certificates, job labor records and all other such books
or accounts as shall be necessary to determine the amount of tax for.
which such person is liable under the provisions of this article.
Collection of back privilege taxes by the town shall be limited to
a period of three years prior to the date when the tax collector began
an audit of the taxpayers books, wrote to the person through use of
ordinary mail concerning an apparent violation of the article, or took
some other recorded action to require a privilege tax permit application
or other compliance with the article. All records mentioned in this
subdivision above, shall be open for examination at any time by the
tax collector.
F. Divulging of information forbidden. It is unlawful for any officer, employee
or agent of the City of Apache Junction.to make known in any manner
whatsoever the business affairs, operations or information obtained
by an investigation of records and equipment of any person visited
or examined in the discharge of his official duty, or the amount, or
source of income, profits, leases, expenditures or any particular
thereof-, set forth or disclosed in any return or report, or the amount
of tax paid. The council may, by motion, authorize an examination
of the reports made pursuant to this article by the United States
Director of Internal Revenue or the proper officials of the State of
Arizona. Successors, receivers, trustees, executors, administrators
and assignees, if directly interested, may be given information as
to the items .included in the measure and amounts of any unpaid tax
or amounts of tax. required to be collected interest and penalties.
Divulging of applicable information to any authorized employee or agent of an incorporated city or town shall be permitted when an employee
or agent of another incorporated city or town is authorized by the
tax collector to conduct audits for the City.!of Apache Junction. Information
supplied on privilege permit applications shall not be considered as
confidential. Any officer, employee or agent of the City of Apache Junction
shall be authorized to divulge such confidential information as may
be necessary upon the order of a court of competent jurisdiction.
8-5-5 BUSINESS 8-5-5
G. Inadequate records. In the event the records of the gross, income,
gross receipts or gross proceeds of sales of the business, kept by
the taxpayer, are deemed by the tax collector to be unsuitable, or
the taxpayer does not keep such other books or records as may be necessary
to determine the amount of the tax for which he is liable under the
provisions of this article, the tax collector may prescribe the form
and manner of keeping such books and records. In the event the taxpayer
fails or refuses to follow such prescribed. form, and the tax collector
cannot ascertain from the records kept by the taxpayer the gross income,
gross receipts or gross proceeds of sale of the business or the amount
of the tax for which the taxpayer is liable under the provisions of
this article, the tax collector may proceed as though such taxpayer
failed or refused to make a return in the manner prescribed by this
article.
H. When tax payable. Except as otherwise specified in this article, the
taxes levied under this article shall be due and payable on or before
the fifteenth day of the month next succeeding the period in which
the tax accrues and shall be delinquent five days thereafter. The
taxpayer shall, on or before the fifteenth day of the stated month,
make out a return showing the gross amount, any authorized deductions,
taxable amount and amount of the tax due for the preceding month.
The taxpayer shall" be required to use the report form authorized by
the tax collector, and shall mail or deliver the same, together with
remittance for the amount of tax due, payable to the City of Apache Junction
to the tax collector or any City employee authorized to receive such
payment. The tax return shall be signed by the taxpayer or his authorized
agent, and such signature shall be evidence that the person signing
the return verifies the accuracy of the information supplied in the
return.
1. In any case where the taxpayer has a reported total "taxable amount"
of fifteen hundred dollars or less for the previous calendar quarter
of the year, the taxpayer may make application to report and pay
the tax on a quarterly basis, upon the written approval of the
tax collector. Any taxpayer on a quarterly.-reporting basis must
report and pay accrued tax due on or before the fifteenth day of
the month following the. calendar quarter to be reported.
2. If the taxpayer later reports a total "taxable amount" for any
quarter of fifteen hundred dollars or more, he shall report and
pay on a monthly basis.
I. Cash receipts or accrual basis: The taxpayer may elect to file returns
and pay his tax either on a cash receipts or accrual basis, but the
taxpayer shall not change from one basis to the other, without the
prior written approval of the tax collector. As a condition of granting
such approval, the tax collector may require an audit of the taxpayer's
records.
8-5-5 BUSINESS 8-5-5
J. Consolidated returns. -Any person engaging in two or more forms of
business of .like classification taxable under this article may file
a consolidated return covering all business activities of like classi-
fication in which he is engaged within the town. i
K. Extension of time for making returns. The tax collector may for good
cause extend the date for making any return required under the provisions
of this article, but the date for filing such return shall not be
extended beyond the fifteenth day of the second month next succeeding
the regular due date.
L. Penalty for delinquency. Any -taxpayer who shall have failed to pay j
such tax within five days from the date upon which such payment shall
have become due shall be subject to -and shall pay a penalty of ten
percent of the amount of such tax, together with interest on such tax
at the rate of one-half of one percent per month or fraction thereof
until paid.
M. Correction of errors. If the taxpayer makes an error or errors in
computing the tax assessable against him, the tax collector shall
correct such error and notify the taxpayer promptly by ordinary mail
that such correction has been made. Any additional tax for which the
taxpayer becomes liable shall be payable within ten days after the
letter or form showing the correction is mailed to the taxpayer. If
the taxpayer makes an error which results in overpayment of tax, the
tax collector shall allow credit against tax due on future returns
or shall authorize a refund to the taxpayer.
N. Duties of person quitting business, his successor or assignee. Any
person who sells his business or stock of goods or quits business shall
be required to make the return provided for under this article within
fifteen days after the date he sold his business or stock of goods
or quit business, and his successor in business or assignee shall be
required to withhold a sufficient amount of the purchase money to cover
the amount of said taxes due and unpaid until such time as the former
owner shall produce a receipt from the tax collector showing that the
taxes have been paid, or a certificate that no taxes are due.
1. If the, purchaser of a business or stock of goods shall fail to
withhold purchase money as above provided and the taxes shall be
due and unpaid after the fifteen-day period herein provided, he
shall be personally liable for the payment of the taxes accrued
and unpaid on account of the operations of the business by the
former owner.
2. Transaction privilege tax liability of the purchaser shall be
limited to no more than that accrued during a period of one full
year prior to the date such business purchase becomes effective.
I
8-5-5 BUSINESS 8-5-5
3. It is unlawfu-1 for the purchaser to refuse or fail to pay the back
taxes accrued during said period within thirty days after the tax
collector mails a letter or other notice by ordinary mail to the
purchaser requesting -such payment of back taxes.
0. Tax shall be lien. The tax imposed by this article, if not reported
and paid by the due date specified by this article, shall constitute
a lien on the property of any person subject to this article. The
procedure to perfect such lien shall be as follows:
1. The tax collector shall give written notice to the taxpayer at
his last known mailing address by certified or registered mail,
or such notice may be sent to the address at which the business
is conducted. This written notice shall indicate that the City
will file a lien on the subject property unless the taxpayer reports
and pays all the tax past due including any penalties and interest
due under this article or provides satisfactory evidence to the
tax collector that no taxes are due, within a period of thirty
days from service or receipt of said written notice.
2. If the taxpayer does not pay taxes due or provide evidence that
.no taxes are due within thirty days after service or receipt of
said written notice, the tax collector may prepare. in triplicate
copies of a "notice and Claim of Lien" and file one copy with the
county recorder of the county in which the property is located.
The tax collector shall then send by certified or registered mail
a copy to the taxpayer at his last known mailing address or at
the address at which the business is conducted. The "notice and
Claim of Lien" shall contain the following:
a. A description of the property sufficient for identification.
b. The name of the taxpayer as owner or reputed owner of the
property.
c. The amount of the delinquent tax, including penalties and
interest; or if this amount cannot be determined precisely
because suitable records and books were not made available
by the, taxpayer, the amount assessed, including penalties and
interest, by the tax collector as authorized by this article
when such books and records are not available or are unsuitable.
From and after the date of its recording in the office of the county
recorder, the lien shall attach to the property-until paid. A sale
of the property to satisfy the lien shall be made upon judgment of
foreclosure and order of sale. The Cityshall have the right to bring
an action to enforce the lien in the superior court of the county in
which the property is located, at any time after its recording, but
failure to enforce the lien by such actions shall not affect its validity.
The recorded "Notice and Claim of Lien" shall be prima facie evidence
of the truth of all matters recited therein and the regularity of all
proceedings prior to the recording therein.
8-5-6 BUSINESS 8-5-6
A prior recording for the purposes provided in this section shall not
be a bar to the subsequent recording of a lien for such purposes, and
any number of such liens on the same property may be enforced in the
same action.
P. Tax collector may examine books and papers. The tax collector may
examine any books, papers, records or other data bearing upon the
correctness of -any return or for the purpose ofmaking a return where
none has been made, as required by the provisions of this article.
If any person shall fail to appear before the tax collector or to
answer any material question or to produce any books, records, papers
or other data when requested to do so, such failure or refusal shall
be reported to the City attorney,, who shall thereupon institute proceedings
in the superior court of the county where such witness resides to
obtain compliance.
Q. Taxpayer's liability. The liability of the taxpayer for taxes due
shall remain the same, whether he collects sufficient added payments
from his customers to cover such taxes due.
1. Where the taxpayer fails to show "tax collected", deductible "repair
labor" and other deductible "service" on invoices to customers, .
sales slips and cash register slips, and on all applicable books
and records, he shall be liable for taxation on his full gross
receipts without .allowance for such items.
2. The burden of proof for all deductions by any taxpayer shall be
on the taxpayer, who must prove to the satisfaction of the tax
collector that such deductions shall have been legal and proper
under this article. A person taking deductions for "resale" or
for "payments to subcontractors" shall not take such deductions
unless the persons for whom the deductions are taken have obtained
the required privilege tax permits.
R. Tax liabilities of partners. . All taxes assessed under the provisions
of this article upon the business activities of a partnership shall
be a liability and charges against each and all of the individual
partners; but when paid by the partnership, such liability against
each and all of the individual partners shall cease.
Sec. 8-5-6 Assessment and Appeal
A. Assessment procedure. If any person who is required to file a return
under the provisions of this article fails or refuses to make a return,
the tax collector shall proceed, . in such a manner as he may deem best,
to obtain facts and information on which to base the assessment of
the tax herein prescribed; and to this end the tax collector may make
examination of the books, records and papers of any such person; and
may take the evidence on oath of any person whom he 'may believe to
be in possession of facts or information pertinent to the subject of
8-5-7 BUSINESS . 8-5-7
3. If court action has been taken by the taxpayer under paragraph
2 above, all subsequent payments due shall be paid on or before
the due date. However, if each tax form is plainly marked "Paid
Under Protest", such subsequent payments shall be treated as part
of the original protest until such time as court remedies have
been exhausted or the court action withdrawn by the taxpayer.
D. Collection of delinquent taxes.
1. If any tax imposed by this article, or any protion thereof, is
not paid within thirty days after the same becomes delinquent,
the tax collector shall be empowered to commence court action in
any appropriate court of competent jurisdiction to collect tax,
penalties and interest due, and to utilize any and all appropriate
remedies as authorized under the laws of the State of Arizona.
Such actions may be commenced whether separate criminal charges
have been filed to cover alleged failure to comply with this article.
2. Every tax imposed by this article and all increases, interest and
penalties thereon, shall become, from the time the same is due
and payable, a personal debt from the person liable to the town
and it shall be payable to and recoverable by the tax collector.
E. Adoption of administrative procedure. The council is hereby authorized
to adopt written administrative regulations to 'implement the enforcement
of this article or to further define terms used in the article. Such
administrative regulations shall be enforceable as though they were
integral portions of the article itself.
F. State of Arizona administrative procedures. Except where such regulations
would conflict with administrative regulations adopted by the council
or with provisions of this article, all regulations on the transaction
privilege tax adopted by the State Department of Revenue under the
authority of Title 41, Chapter 6, Article 1, Arizona Revised Statutes
and amendments thereto, shall be considered as part of this article
and enforceable as such.
Sec. 8-5-7 Violations
A. Advertisement regarding taxes. It is unlawful for any person engaged
in any of the businesses classified in Section 8-5-3 to advertise or
hold out to the public in any manner, directly or indirectly, that
the tax herein imposed is not considered as .an element in the price
to the consumer.
B. Permit required. It is unlawful for any person engaging in a business
subject to the city transaction privilege tax to fail to obtain a
permit before beginning or continuing such business. -
8-5-6 BUSINESS 8-5-6
inquiry, which oath the tax collector may administer. If no other
information is readily available, the tax collector may make a reasonable
judgment on the basis of past reports by the taxpayer or .by any predecessor.
When the tax collector has reached a decision as to the assessment,
he shall notify the taxpayer in writing of such assessment, which shall
become final within thirty days after such notice has been mailed or
served, unless the taxpayer shall notify the tax collector in writing
of a request for a tax hearing within said thirty days.
B. Hearing at taxpayer's request. When a taxpayer requests a hearing
as indicated in Section 8-5-6 (A) such hearing shall normally be held in the
offices of the City of A ache Junction provided that the tax collector
may choose another suitable. room in the same city or by mutual agreement
with the taxpayer, he may hold the hearing in such other place as may
prove desirable. The hearing shall be conducted by the tax collector,
and it shall be closed to all except the tax collector and his authorized
representatives and the taxpayer and his authorized representatives,
unless the taxpayer agrees in writing to waive restrictions on release
of confidential information. The tax collector shall provide the
taxpayer with not less than ten days notice of the date, time and place
of the hearing. During the hearing the taxpayer or his authorized
representative may present any evidence he deems appropriate to the
issues or questions under consideration. Within fifteen days after
the conclusion of the hearing, the tax collector shall affirm, modify
or vacate any decision made with respect to the issues or questions
discussed in the course of the hearing. Notice of said decision shall
be provided to the taxpayer by the tax collector as provided in this
article, and said decision shall be effective in ten days after service
of notice.
C. Payment under protest. If any person feels aggrieved by a tax assessment
or believes that any or all of his activities are not subject to the
privilege tax required by this article, he shall pay the amount of
such assessment or tax claimed due before the delinquent date and shall
at that time give notice in writing to the tax collector that all or
part of such payment is made under protest, and shall in the notice
give the grounds and reasons for such protest and that a certain part
thereof or that the total sum is protested.
1. Within ten days after receipt of such protest, the tax collector
shall reply .in writing to the last known mailing address of the
taxpayer, stating whether the assessment or tax applied is to be
changed as requested, and giving reasons for the decision.
2. If the taxpayer is then dissatisfied, he may take appropriate
action in the superior court to recover .payments made under protest.
Court action shall be taken within sixty days after the tax collector
has mailed his reply as required by paragraph 1, above. Failure
to take court action within the required sixty day period shall
make the protest null and void.
8-5-1 BUSINESS 8-5-1
C. Tax collection from customers. Any person, who collects added payments
from customers stated or indicated to be for the purpose of meeting
privilege tax obligations of such person, shall be required to use
such money only for such purpose. It is unlawful for any person to fail
to pay privilege tax due to the City of Apache Junction within a period
of thirty days after the date such tax is due if evidence is provided
that such person has at any time collected such added payments from
customers.
D Failure to make return. It is unlawful for -any person or for any
officer or agent of any company or corporation to fail or refuse to
make the returns and to pay the tax provided to be paid by the provisions
of this article, or to make or permit to be made any false or fraudulent
return or false statement in any return required by this article; or
for any reason to aid or abet another in any attempt to evade the
payment of the tax, or any part thereof, imposed by this article; or
for any person`or officer or agent of a company to fail or refuse to
permit the examination of any book, paper, account, record or other
data by the tax collector as required by this article; or to. violate
any of the other provisions of this article.
PASSED AND ADOPTED by the Mayor and Common Council of
Apache Junction, Arizona this D/�Tday of �
1979.
Ylay or
ATTEST:
City Clerk
APPROVED AS TO FORM:
ty Attorney
CITY COUNCIL
REGULAR MEETING
SEPTEMBER 1, 1987
The regular meeting of the City Council of the City of Apache Junction,
Arizona, was held on September 1, 1987,at the Apache Junction City Council
Chambers pursuant to the notice required by law.
CALL TO ORDER
Mayor Hill called the meeting to order at 7:00 p.m.
INVOCATION
Councilwoman Gardner gave the Invocation.
PLEDGE OF ALLEGIANCE
Vice Mayor Bakkedahl led the Pledge of Allegiance.
ROLL CALL
Councilmen Present: Councilman Damiano
Councilwoman Perkins
Councilwoman Gardner
Councilman Bluntschly
Vice Mayor Bakkedahl
Mayor Hill
Councilman Absent: Councilman Burgess (ill )
Staff Present: City Manager Bill R. Da Vee
City Clerk Kathleen Connelly
Deputy City Clerk Lori Zmayefski
City Attorney David Alexander
Director of Public Safety Bill McDaniel
Associate Planner/Deputy Director Jim Nakagawa
Director of Public Works Rich Broman
Director of Community Services Jeff Bell
Economic Development Specialist John Schoeph
Operations Supervisor Doug Dobson
Assistant Planner Julie Reid
Others Present: Mr. Keith Stacha,
6301 E. Roundup
Apache Junction, Arizona
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 1
Ms Janet Sotomayor
945 E. Scenic
Apache Junction, Arizona
Mr. Jimmy Eidson
944 W. 3rd Avenue
Apache Junction, Arizona
Mr. Roland Hansen
2920 W. Tepee
Apache Junction, Arizona
Mr. Hershel Eugene Wilson
Ms Margaret Campbell
915 S. Palomino
Apache Junction, Arizona
Ms Bonnie Robinson
1337 W. Rawhide
Apache Junction, Arizona
ACCEPTANCE OF CONSENT AGENDA )
) Councilman Damiano MOVED THAT
CONSENT AGENDA ITEM NOS. 1, 2, AND 3, BE ACCEPTED AS FOLLOWS:
ACCEPTANCE OF REGULAR MEETING AGENDA
ACCEPTANCE OF MINUTES FROM REGULAR MEETING OF JUNE 2, 1987
ACCEPTANCE OF MINUTES FROM REGULAR MEETING OF AUGUST 4, 1987
motion. Councilman Bluntschly seconded the
VOTE: Unanimous
The motion carried
Introduction of Distinguished Visitors and Guests
Mayor Hill thanked everyone present for attending the meeting.
AWARDS, PRESENTATIONS AND COMMUNICATIONS
City Clerk Kathleen Connelly explained that the City has been awarded a
Pedestrian Protection Program Award by the Arizona Automobile Association, for
two years of not having accidents involving pedestrians. Mayor Hill accepted
the Award for the City.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 2
CALL TO THE PUBLIC
Mr. Keith Stachar, 6301 E. Roundup, Apache Junction, informed the Council of
the County tax situation, and that a State mandate is coming to reassess all
industrial property in Pinal County.
CITY MANAGER'S REPORT
City Manager Bill R. Da Vee informed the Council that the State has made a
decision to request a re-evaluation of property sales, and there will be a
hearing, if anyone is interested in attending. Mr. Da Vee also reported that
City of Mesa officials have assured the City that any of their proposed changes
would not affect the construction schedule of the Freeway, and the Director of
Arizona Department of Transportation felt that the three changes requested by
the City of Mesa would not affect the current design features or construction
schedule of the Superstition Freeway, and also stated that outside consultants
have been contacted to review the State report, and have indicated that a
proposal for Council approval will be prepared evaluating the State's
recommendation. Mr. Da Vee also reported that Central Arizona Association of
Governments Management Committee will be meeting on Thursday to award merit
points for the Community Development Block Grant Program, and the City will be
making a presentation at that meeting hoping to be funded for the project
submitted, which was for improvements in targeted areas and street and lighting
improvements in some neighborhoods.
PUBLIC HEARINGS
APPLICATION FOR SERIES 12 LIQUOR
LICENSE, SUPERSTITION SKIES )
Ms Janet Sotomayor, 945 E. Scenic,
Apache Junction, applicant for the Series 12 Liquor License, requested approval
of the liquor license.
Mayor Hill asked if there was anyone
who wished to speak in favor of or in opposition to the application. There
being no one wishing to address the Council , Mayor Hill closed the hearing to
the public.
Councilman Damiano MOVED THAT THE
APPLICATION FOR A SERIES 12 LIQUOR LICENSE, SUBMITTED BY MR. ESPIRIDION R.
SOTOMAYOR FOR SUPERSTITION SKIES RESTAURANT AND LOUNGE, BE RECOMMENDED FOR
APPROVAL TO THE STATE DEPARTMENT OF LIQUOR LICENSES AND CONTROL.
Councilwoman Perkins seconded the
motion.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 3
VOTE: Unanimous
The motion carried.
PROPOSED ORDINANCE NO. 557, AMENDMENTS
TO ZONING ORDINANCE DEFINING ADULT USES
AND REGULATING THE LOCATION OF ADULT USES
(Postponed Item) )
) Associate Planner/Deputy Director
Jim Nakagawa explained that this ordinance is a proposed amendment to the Zoning
Ordinance which would define "Adult Uses", would establish zoning districts
where those uses may be permitted, and previously the City Council adopted
Ordinance No. 486, than adopted a moratorium prohibiting the establishment of
any "Adult Use", and than repealed Ordinance No. 486. Mr. Nakagawa stated that
Ordinance No. 557 was developed as a result of recent U.S. Supreme Court rulings
regarding Zoning Ordinances regulating "Adult Uses", which excludes convenience
and video stores that offer only offer these products on an incidental basis,
identifies the purpose of the Ordinance, and identifies zoning districts where
these uses may be permitted.
Mayor Hill asked if there was anyone
who wished to speak on this item.
Mr. Jimmy Eidson, 944 W. 3rd Avenue,
Apache Junction, addressed the Council in favor of the Ordinance with the words
"substantial and significant" removed.
There being no one else wishing to
address the Council , Mayor Hill closed the hearing to the public.
Councilman Damiano MOVED THAT
ORDINANCE NO. 557, BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE
BE WAIVED.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 557, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AMENDING THE
APACHE JUNCTION, ARIZONA, ZONING ORDINANCE, BY AMENDING AND ADDING SECTION
5.0101, BY AMENDING AND ADDING TO SECTION 16.0604 (3), BY ADDING SECTION
17.0111, AND BY ADDING SECTION 17.0211; REPEALING ANY CONFLICTING PROVISIONS;
AND PROVIDING FOR SEVERABILITY.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 4
Councilman Damiano MOVED THAT
ORDINANCE NO. 557, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED WITH THE
FOLLOWING AMENDMENTS:
THAT THE WORDS "SUBSTANTIAL OR SIGNIFICANT" BE REMOVED FROM SECTION 5.0101,
PARAGRAPHS A AND B.
Councilwoman Perkins seconded the
motion.
Councilwoman Gardner asked what the
effect would be by removing those two words.
City Attorney David Alexander stated
that removing those two words, the activities that are regulated could be any
establishment that sells almost any type of adult book, with Circle K's, and
Osco's, as examples.
Mr. Alexander explained that the
Ordinance stated that anyone selling those articles have to be 1000 feet away
from each other, and any currently existing will not be effected.
Vice Mayor Bakkedahl asked if
Section 32 has been rezoned.
Mr. Nakagawa replied that Section 32
is zoned CR-1 Residential Zone, and the State requires a master plan prior to
rezoning this to industrial .
Vice Mayor Bakkedahl expressed a
concern that most adult book stores, etc.., aren't usually located in an
industrial area, and a previous case in Washington argued the availability and
accessibility of land, and that as Apache Junction does not have available land
for those types of uses.
Councilman Bluntschly stated that he
could not support any ordinance that says we can have this kind of material in
the community, and asked the City Attorney if this is as stringent an ordinance
that can be adopted.
Mr. Alexander replied that this is
as stringent as he would like, in regards to defensibility, and further that
Vice Mayor Bakkedahl 's statement is correct in that the attempt to regulate the
location of adult uses is difficult if a location does not exist, and should the
Council choose to regulate, this is as stringent as it should get.
VOTE: In Favor: Councilman Damiano, Mayor Hill
Opposed: Councilwoman Gardner, Councilwoman Perkins
Councilman Bluntschly, Vice Mayor Bakkedahl
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 5
The motion failed.
Councilwoman Gardner suggested
postponing this Ordinance for 60 days, until a zoning location can be found.
Mayor Hill stated that he wished to
adopt an Ordinance and then find an area.
Councilwoman Gardner asked how long
it would take staff to come up with an area.
Mr. Nakagawa replied that there may
not be an area other than the south part of Section 32, which has to go through
the State requirements for rezoning. i
Vice Mayor Bakkedahl expressed the
feeling that an Ordinance is necessary eventually, but it is necessary to have
an area available first.
Councilwoman Gardner stated that if
the Ordinance is not acted on, this use is being left wide open.
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 557, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED.
The motion died dued to lack of a
second.
Councilman Damiano MOVED THAT
ORDINANCE NO. 557, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED WITH THE
FOLLOWING AMENDMENTS:
THE WORDS "SUBSTANTIAL OR SIGNIFICANT" BE REMOVED FROM SECTION 5.0101,
PARAGRAPHS A AND B, TO BECOME EFFECTIVE IN 31 DAYS.
Councilwoman Gardner seconded the
motion.
VOTE: In Favor: Councilwoman Gardner, Councilwoman Perkins, Councilman Damiano
Mayor Hill
Opposed: Councilman Bluntschly, Vice Mayor Bakkedahl
The motion carried.
PROPOSED ORDINANCE NO. 561, PZ-46-86,
AMENDMENTS TO ZONING ORDINANCE -
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 6
CONDITIONAL USE PERMITS )
Mr. Nakagawa explained that this
ordinance outlines procedures and requirements for processing conditional use
permits, and became necessary when a loophole in the City Zoning Ordinance that
did not outline a process whereby conditional use permits may be granted for
certain uses, and stated that the Planning and Zoning Commission recommends
approval , and staff has a suggestion stipulation.
Mayor Hill asked if there was anyone
who wished to speak in favor of or in opposition to the ordinance . There being
no one wishing to address the Council , Mayor Hill closed the hearing to the
public.
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 561, BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE
BE WAIVED.
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 561, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AMENDING THE
APACHE JUNCTION, ARIZONA ZONING ORDINANCE, BY AMENDING SECTION 6.0101; REPEALING
ANY CONFLICTING PROVISIONS; AND PROVIDING FOR SEVERABILITY.
Councilman Damiano MOVED THAT
ORDINANCE NO. 561, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED WITH THE
FOLLOWING AMENDMENTS:
THAT SUBSECTION (3)(1) TO READ "ADEQUACY OF ROADWAYS, OFF-STREET PARKING, PUBLIC
FACILITIES AND SERVICES TO ACCOMODATE THE PROPOSED USE AND PROVISIONS FOR
UPGRADING ORDINANCE IMPROVEMENTS.
Councilwoman Gardner seconded the
motion.
Vice Mayor Bakkedahl asked if this
this procedure is standard with other cities, or do most go directly to the City
Council with an appeal .
Mr. Nakagawa in some cases the
Planning and Zoning Commission makes that decision, with an appeals process to
the legislative body.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 7
VOTE: Unanimous
The motion carried.
PROPOSED ORDINANCE NOS. 583, TRAFFIC
CONTROL DEVICES (INSTALLATIONS)
PROPOSED ORDINANCE NO. 590, TRAFFIC
CONTROL DEVICES (DELETIONS)
(With the Emergency Clause) )
) Director of Public Works Rich Broman
explained that these traffic control devices are being installed and deleted,
due to new development, flood retarding structures, construction of streets, and
abandonments.
Mayor Hill asked if there was anyone
who wished to speak in favor of or in opposition to the ordinances. There being
no one wishing to address the Council , Mayor Hill closed the hearing to the
public.
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 583, BE READ BY TITLE ONLY WITH THE EMERGENCY CLAUSE, AND THE
READING OF THE ENTIRE ORDINANCE BE WAIVED.
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 583, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, ESTABLISHING
LOCATIONS FOR STOP SIGNS THROUGHOUT THE CITY OF APACHE JUNCTION, ARIZONA;
REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR
PENALTIES; AND DECLARING AN EMERGENCY.
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 583, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED.
Councilman Bluntschly seconded the
motion.
VOTE: Unanimous
The motion carried.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 8
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 590, BE READ BY TITLE ONLY WITH THE EMERGENCY CLAUSE, AND THE
READING OF THE ENTIRE ORDINANCE BE WAIVED.
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 590, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, REPEALING
THE DESIGNATION OF CERTAIN LOCATIONS FOR STOP SIGNS THROUGHOUT THE CITY OF
APACHE JUNCTION, ARIZONA; REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR
SEVERABILITY; PROVIDING FOR PENALTIES; AND DECLARING AN EMERGENCY.
Councilman Damiano MOVED THAT
ORDINANCE NO. 590, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
PROPOSED RESOLUTION NO. 87-56, DECLARING
"THE MODEL CITY TAX CODE OF THE CITY OF
APACHE JUNCTION, ARIZONA" AS PUBLIC
RECORD; AND
PROPOSED ORDINANCE NO. 588, ADOPTING
"THE MODEL CITY TAX CODE OF APACHE
JUNCTION, ARIZONA, BY REFERENCE (With
the Emergency Clause - Readoption of
of existing City Tax Code by Model
Tax Code )
Mr. Da Vee explained that the "Model
Tax Code" Ordinance is a culmination of 24 years of effort by the League of
Arizona Cities and Towns, with the purpose to get the communities who are
involved with the taxation issue to have ordinances that are similar in verbage
and approach, and this code is designed with a variety of options to take with
uniformity. Mr. Da Vee stated that legislation was proposed that would have
pre-empted local options, and the League of Arizona Cities took this approach to
preserve those local options.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 9
City Clerk Kathleen Connelly further
explained that this Code does not make any changes in the existing regulations,
merely putting them in a different form creating a separate chapter in the Code
dealing with City Sales and Transaction Tax regulations, and making the language
uniform throughout the cities in Arizona.
Mayor Hill asked if there was anyone
who wished to speak in favor of or in opposition to the item. There being no
one wishing to address the Council , Mayor Hill closed the hearing to the public.
Councilman Damiano MOVED THAT
RESOLUTION NO. 87-56, A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT
FILED WITH THE CITY CLERK AND ENTITLED "THE CITY TAX CODE OF THE CITY OF APACHE
JUNCTION, ARIZONA," AND DECLARING AN EMERGENCY, BE APPROVED AND ADOPTED;
AND THAT ORDINANCE NO. 588, BE READ BY TITLE ONLY WITH THE EMERGENCY CLAUSE, AND
THE READING OF THE ENTIRE ORDINANCE BE WAIVED.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 588, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, RELATING TO
THE PRIVILEGE LICENSE TAX; ADOPTING THE "CITY TAX CODE OF THE CITY OF APACHE
JUNCTION, ARIZONA" BY REFERENCE AND FIXING THE EFFECTIVE DATE THEREOF; REPEALING
ARTICLE 8-3 OF THE APACHE JUNCTION CITY CODE; PRESERVING RIGHTS AND DUTIES THAT
HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER;
REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY, PROVIDING
PENALTIES FOR THE VIOLATION THEREOF; AND DECLARING AN EMERGENCY.
Councilman Damiano MOVED THAT
ORDINANCE NO. 588, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
PROPOSED ORDINANCE NO. 589, PZ-9-87,
HANSEN )
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 10
Assistant Planner Julie Reid briefed
the Council on the request for rezoning of a 14 acre parcel from General Rural
to Single Family Residence Zone, located at the northwest corner of North Warner
Dirve and West Tepee Street, and stated that staff recommends CR-1(MH) for the
south portion of the site and CR-1 for the north portion with stipulations,
which the applicant has concurred with, and that the Planning and Zoning
Commission recommends approval of the rezoning suggested by staff, with
stipulations.
Mr. Roland Hansen, 2920 W. Tepee,
Apache Junction, requested approval of splitting the property.
Councilwoman Gardner asked if the
applicant understood all of the stipulations.
Mr. Hansen replied that he did not
really understand, specifically the off-site improvements.
Ms Reid further explained the off-
site improvements.
Vice Mayor Bakkedahl stated that the
applicant needs to sign a paper agreeing to go along with any off-site
improvements in the future.
Ms Reid agreed that this is the
procedure at this point, that if a development occurs, development should pay
for any improvements necessary, but for single family lots a method has been
developed for deferring those until everyone in the neighborhood is ready for
that, and at this time it doesn't seem that we have a valid method of
deferrment.
Vice Mayor Bakkedahl stated that
Council should define a policy for that method.
Mr. Da Vee stated that basically the
policy is that either the improvements be put in at the time of approval, or are
deferred, and possibly a better way to deferr would be to define a time in which
an improvement district would be formed, or a decision would be made at that
point after a review.
Vice Mayor Bakkedahl asked the
applicant if he would agree to a postponement on the off-site improvements for
possibly two years, and reconsider it at that time.
Mr. Hansen replied that he is
selling the property to his son-in-law, so would like to discuss it with that
party first.
Councilman Bluntschly suggested
postponing this item, as the applicant does not appear to clearly understand the
stipulations.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 11
Mr. Hansen asked why this is so
difficult, when many properties adjoining were split in the past.
Mr. Da Vee answered that the
difference is that in the past these were deferred based on agreements of the
individual that they would agree not to oppose an improvement district, and as
that is under challenge now, we can no longer do that.
Mr. Mark Perkins, Sr., addressed the
Council, stating that they have already dedicated land to the City and to have
to give more is unreasonable, but would be in agreement to having the street
paved.
Mr. Da Vee explained that this is
what the City is asking, if the applicant would be willing to help pay for that
as a participant in an improvement district.
Councilwoman Gardner suggested
postponing this, until the applicant can given a complete understanding of off-
site improvements.
Mayor Hill requested that the City
Manager work with the applicant, so that he understands the entire process.
Councilman Damiano MOVED THAT
ORDINANCE NO. 589, BE POSTPONED UNTIL SEPTEMBER 15, 1987.
Councilman Bluntschly seconded the
motion.
VOTE: Unanimous
The motion carried.
Mayor Hill recessed the meeting.
Mayor Hill reconvened the meeting 9:02 p.m.
PROPOSED ORDINANCE NO. 591,
PZ-5-87, WILSON )
) Ms Reid briefed the Council on the
request for rezoning of two combined parcels of 10 acres located at the north
side of Southern Avenue between South Cortez Road and South Acacia Road, from
CR-4/PD Multiple Family Residence Zone by Planned Development to TH/PD Trailer
Homesite by Planned Development, with a General Plan designation of high density
residential, and stated that the Planning and Zoning Commission recommends
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 12
denial of the application as a trailer park in that area would hurt adjoining
property owners.
Mr. Hershel Eugene Wilson, owner of
the property in question, outlined the proposed development of a 72 unit mobile
home park, and stated that the neighbors are not objecting to the park, after
looking at the plans.
Mayor Hill asked if anyone wished to
speak in favor of or in opposition to the rezoning.
Ms Margaret Campbell , 915 S.
Palomino, Apache Junction, adjacent property owner, addressed the Council in
objection to the application for rezoning.
There being no one else wishing to
address the Council , Mayor Hill closed the hearing to the public. !
Councilman Damiano MOVED THAT
ORDINANCE NO. 591, BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE
BE WAIVED.
Councilwoman Gardner seconded the
motion.
Councilman Damiano stated that the
area is mostly mobile homes, and a trailer park would be appropriate.
Councilman Bluntschly asked the
applicant if he would be selling the lots and trailer.
Mr. Wilson replied that he would not
be selling the lot, just the mobile home, awnings, skirtings, landscaping, as a
package.
Councilwoman Gardner commented that
the General Plan designation is conventional homes, and this is a concern.
Councilman Damiano stated that the
Mr. Wilson applied for this prior to the General Plan designation.
Mr. Wilson stated that he was
assured, by staff, that since the application was made prior to the General Plan
being installed, the request would fall under the old guidelines.
Councilwoman Perkins asked if
selling the mobile homes and installing them is permitted?
Mayor Hill replied that this is done
all the time.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 13
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 591, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AMENDING THE
APACHE JUNCTION, ARIZONA, ZONING ORDINANCE BY AMENDING THE ZONING DISTRICT MAP,
CITY OF APACHE JUNCTION, ARIZONA, CHANGING THE ZONING DISTRICT CLASSIFICATION IN
REZONING CASE PZ-5-87 FROM CR-4/PD MULTIPE FAMILY RESIDENCE ZONE BY PLANNED
DEVELOPMENT TO TH/PD TRAILER HOMESITE BY PLANNED DEVELOPMENT; REPEALING ANY
CONFLICTING PROVISIONS; AND PROVIDING FOR SEVERABILITY.
Councilman Damiano MOVED THAT
ORDINANCE NO. 591, AS READ BY THE CITY CLERK BE APPROVED AND ADOPTED.
Councilman Bluntschly seconded the
motion.
Vice Mayor Bakkedahl reminded the
Council that for approval of this case there would have to be a three-quarter
vote, due to protests submitted, and as there are only six members of the City
Council present, the applicant may wish to postpone this until the next meeting.
City Clerk Kathleen Connelly
explained that the vote for approval would require three-quarters of those
elected, not present, so it would be necessary to have six voting in approval .
Councilman Damiano suggested
postponing this application, and withdrew the motion.
Councilman Damiano MOVED THAT
PZ-5-87, ORDINANCE NO. 591, BE POSTPONED UNTIL THE REGULAR CITY COUNCIL MEETING
OF SEPTEMBER 15, 1987.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
PROPOSED ORDINANCE NO. 592,
PZ-10-87, HARAMBASIC )
Ms Reid explained that this
application for rezoning is for a 4.86 acre parcel, located at the northeast
corner of North Meridian and West Superstition Boulevard, from General Rural to
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 14
C-3 General Commercial District, and stated that this rezoning does comply with
the General Plan, and that the Planning and Zoning Commission does recommend
approval with stipulations.
Mr. Keith Stachar, 6301 E. Roundup,
Apache Junction, representing John and Sylvia Harambasic, stated that the
applicant does not have a plan for development at this time, and agrees to
submit any plan to the Planning Department and City Council for approval .
Mayor Hill asked if there was anyone
who wished to speak in favor of or in opposition to the application. There
being no one wishing to address the Council , Mayor Hill closed the hearing to
the public.
Councilwoman Gardner MOVED THAT
ORDINANCE NO. 592, BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE
BE WAIVED.
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
City Clerk Kathleen Connelly read as
follows:
ORDINANCE NO. 592, AN ORDINANCE OF
THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AMENDING THE
APACHE JUNCTION, ARIZONA, ZONING ORDINANCE BY AMENDING THE ZONING DISTRICT MAP,
CITY OF APACHE JUNCTION, ARIZONA, CHANGING THE ZONING DISTRICT CLASSIFICATION IN
REZONING CASE PZ-10-87 FROM GR GENERAL RURAL TO C-3 GENERAL COMMERCIAL DISTRICT;
REPEALING ANY CONFLICTING PROVISIONS; AND PROVIDING FOR SEVERABILITY.
Councilman Damiano MOVED THAT
ORDINANCE NO. 592, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED.
Councilwoman Perkins seconded the
motion.
Councilwoman Gardner wished to add a
stipulation that a site plan be submitted as part of the approval at the time of
development.
Mayor Hill explained that the
stipulation is in the ordinance.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 15
Councilman Damiano asked for
clarification on the parking concern.
Mayor Hill clarified the stipulation
for parking.
Vice Mayor Bakkedahl commented that
the City of Mesa has adopted a policy requiring a site plan and elevation
submittal for any change of zoning requests, to avoid the typical speculative
zoning, and to tie down zoning to a specific use site plan and design.
VOTE: Unanimous
The motion carried.
OLD BUSINESS
AUTHORIZATION TO CONTRACT FOR ECONOMIC
AND FINANCIAL ANALYSIS OF SEWER SYSTEM )
City Manager Bill R. Da Vee
explained that the study called for previously has been revised, to include
sewer issues and providing for temporary disposal by running a line to the City
of Mesa, and the study submitted has been prepared by Brown and Caldwell
Consulting Engineers for Council consideration.
Councilman Damiano MOVED THAT THE
CONTRACT WITH BROWN AND CALDWELL CONSULTING ENGINEERS FOR A SEWER SYSTEM
ECONOMIC AND FINANCIAL ANALYSIS IN THE AMOUNT OF $19,743.00, BE APPROVED.
Councilwoman Perkins seconded the
motion.
VOTE: Unanimous
The motion carried.
PROPOSED SELECTION OF ALTERNATE DATE
FOR PUBLIC FORUM; AND
PROPOSED SELECTION OF ALTERNATE DATE
FOR WORK SESSION WITH COMMUNITY
FOUNDATION AND GERONTOLOGY RESEARCH
FOUNDATION )
Ms Bonnie Robinson, 1337 W.
Rawhide, Apache Junction, spoke as Acting President of the Gerontology Research
Foundation, and read a letter requesting a postponement for the requisition of
funds until the President, Dr. Marvin E. Seeman can represent the Foundation,
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 16
and that he will not be able to attend the work session on September loth, and
that if the work session cannot be postponed, Attorney John Hay will represent
the Foundation at that meeting.
City Clerk Kathleen Connelly stated
that it is necessary to select dates for the Public Forum and a Work Session
with the Community Foundation and Gerontology Research Foundation, and suggested
the Public Forum take place in lieu of the regularly scheduled Work Session on
October 5th.
Councilwoman Gardner MOVED THAT A
PUBLIC FORUM BE HELD ON OCTOBER 5, 1987, AT 7:00 P.M., IN THE CHAMBER OF
COMMERCE BUILDING;
AND THAT A WORK SESSION WITH THE COMMUNITY FOUNDATION AND THE GERONTOLOGY
RESEARCH FOUNDATION BE HELD ON SEPTEMBER 10, 1987, AT 7:00 P.M., IN THE CITY
COUNCIL CHAMBERS.
Councilman Bluntschly seconded the
motion.
VOTE: Unanimous
The motion carried.
w
NEW BUSINESS i
APPOINTMENTS AND RESIGNATION FROM
BOARD AND COMMISSION:
APPOINTMENT TO THE LIBRARY BOARD
APPOINTMENTS TO THE PARKS AND
RECREATION COMMISSION
RESIGNATION AND APPOINTMENTS TO
THE BOARD OF ADJUSTMENTS
APPOINTMENTS TO THE PLANNING
AND ZONING COMMISSION }
Director of Library Pam Loui stated
that there is one vacancy on the Library Board, and recommended Mr. James Lovett
be appointed.
Councilwoman Perkins MOVED THAT
JAMES LOVETT BE APPOINTED TO THE LIBRARY BOARD, SAID TERM TO EXPIRE JUNE 30,
1988;
AND THAT LOYD LYNCH BE APPOINTED TO THE PARKS AND RECREATION COMMISSION, SAID
TERM TO EXPIRE JUNE 30, 1988;
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 17
AND THAT THE RESIGNATION OF SHARYN ALGER FROM THE BOARD OF ADJUSTMENT BE
ACCEPTED WITH REGRET;
AND THAT LILLIAN CASTRO, AND ELEANOR LYNCH, BE APPOINTED TO THE BOARD
ADJUSTMENT, SAID TERMS TO EXPIRE JUNE 1989:
AND THAT PAUL CONNOLLY, BOB JORGENSEN, AND H. CLINE VANHOY BE APPOINTED TO THE
PLANNING AND ZONING COMMISSION, SAID TERM TO EXPIRE JUNE 30, 1990.
Councilwoman Gardner seconded the
motion.
Councilman Bluntschly stated that he
concurred with all of the nominations, except the reappointments to the Planning
and Zoning Commission, as there need to be changes.
VOTE: In Favor: Councilwoman Gardner, Councilwoman Perkins,
Vice Mayor Bakkedahl , Mayor Hill
Opposed: Councilman Bluntschly, Councilman Damiano
The motion carried.
COUNCIL LIAISON APPOINTMENTS )
Mayor Hill MOVED THAT COUNCIL
LIAISON APPOINTMENTS BE POSTPONED UNTIL SEPTEMBER 15, 1987.
Councilman Damiano seconded the j
motion, i
VOTE: U^animous
f
The motion carried.
PROPOSED RESOLUTION NO. 87-49, ORDERING
AND CALLING A SPECIAL BOND ELECTION FOR
GENERAL OBLIGATION AND REVENUE BONDS TO
BE HELD IN AND FOR THE CITY OF APACHE
JUNCTION, ARIZONA (With Emergency Clause))
) Mr. Da Vee explained that as the
bond attorney is not available to answer questions posed, it is suggested that
this be postponed until September 15, 1987.
Vice Mayor Bakkedahl MOVED THAT
RESOLUTION NO. 87-49, ORDERING AND CLALING A SPECIAL BOND ELECTION FOR GENERAL
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 18
OBLIGATION AND REVENUE BONDS TO BE HELD IN AND FOR THE CITY OF APACHE JUNCTION,
ARIZONA, BE POSTPONED TO A MEETING ON OR BEFORE SEPTEMBER 15, 1987.
Councilman Bluntschly seconded the
motion.
VOTE: Unanimous
The motion carried.
AUTHORIZATION OF EXPENDITURES FOR
PARK DEVELOPMENT PROJECTS (City Hall
Complex; Prospector Park Phase II) )
Mr. Da Vee recommended that the two
consultants that designed the parks be retained to continue the construction
inspections, staking, and analysis of bids.
Councilwoman Perkins MOVED THAT
AUTHORIZATION BE GIVEN TO CONTINUE TO UTILIZE THE PARK CONSULTANTS THROUGHOUT
THE CONSTRUCTION OF THE PARK DEVELOPMENT PROJECTS, AND THAT THE EXPENDITURE OF
FUNDS BE AUTHORIZED IN THE FOLLOWING AMOUNT:
HENRY HAWS & ASSOCIATES NOT TO EXCEED $4,000.00
COE & VAN L00, INC. NOT TO EXCEED $4,913.00
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
PROPOSED RODEO FACILITY )
Mr. Da Vee explained that this
proposed agreement for the responsibilities of the rodeo facility has been
reviewed by the Development Coordinating Committee, and Parks and Recreation
Commission, and requested authorization to proceed to draft an agreement between
the City and the Chamber of Commerce, with the purpose of outlining the scope of
the project and who is to do what and within what time frame.
Councilwoman Gardner MOVED THAT
AUTHORIZATION BE GIVEN THE DIRECTOR OF COMMUNITY SERVICES, THROUGH THE CITY
MANAGER, TO DRAFT A FORMAL AGREEMENT FOR RODEO FACILITIES, TO BE PRESENTED TO
THE CHAMBER OF COMMERCE BOARD OF DIRECTORS AND CITY COUNCIL FOR FINAL
CONSIDERATION.
Vice Mayor Bakkedahl seconded the
motion.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 19
VOTE: Unanimous
The motion carried.
COUNCIL CONSIDERATION OF CLAIM
AGAINST CITY (JAMES) )
City Attorney David Alexander stated
that a claim has been submitted against the City with regard to wrongful
issuance of a protective order, and suggested either accepting or denying the
claim as there is a 60 day deadline to respond.
Vice Mayor Bakkedahl MOVED THAT THE
CLAIM AGAINST THE CITY SUBMITTED BY MR. JERRY D. JAMES, BE REJECTED.
Councilman Bluntschly seconded the
motion.
VOTE: In Favor: Councilwoman Perkins, Councilman Bluntschly,
Councilwoman Gardner, Vice Mayor Bakkedahl , Mayor Hill
Abstained: Councilman Damiano
The motion carried.
REQUESTS FOR EXTENSION TO CLEAN
PROPERTY (CITY CODE, ARTICLE 9-2) )
City Clerk Kathleen Connelly
explained that the City has received two requests from individuals wishing
additional time to clean their property, both having received previous 30 day
extensions.
Vice Mayor Bakkedahl MOVED THAT
MICHAEL J. NOLAN BE GRANTED AN EXTENSION TO EXPIRE 30 DAYS FROM RECEIPT OF
NOTIFICATION; f
AND THAT GEORGE A. AND ANNA LAMPANIN BE GRANTED AN EXTENSION TO EXPIRE 30 DAYS
FROM RECEIPT OF NOTIFICATION.
Councilwoman Gardner seconded the
motion.
Councilwoman Gardner commented that
having visited one of the properties in question, there is not justification for
a litter violation.
Councilman Damiano stated that in
Nolan's case, there is justification for a litter complaint.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 20
VOTE: In Favor: Councilwoman Gardner, Councilman Bluntschly,
Councilwoman Perkins, Vice Mayor Bakkedahl, Councilman Damiano
Opposed: Mayor Hill
The motion carried.
REQUEST FOR CITY CONTRIBUTION TO ARIZONA
SUPERCONDUCTING SUPERCOLLIDER PROJECT )
) Mr. Da Vee explained that this is a
request from the State to support the effort to get the contract for the Arizona
Superconducting Super Collider, which is a $4.4 billion dollar construction
project, and would be an economic benefit to the State of Arizona, and that our
share if we participate, would be $1,441.00. Mr. Da Vee also stated that many
cities have placed the stipulation that should the money not be used, it be
returned.
Councilwoman Gardner MOVED THAT
AUTHORIZATION BE GIVEN TO EXPEND $1,441.00 IN SUPPORT OF THE ARIZONA
SUPERCONDUCTING SUPER COLLIDER, WITH THE STIPULATION THAT IF THE MONEY IS NOT
COMPLETELY UTILIZED, IT WILL BE RETURNED.
Councilman Damiano seconded the
motion.
VOTE: Unanimous
The motion carried.
OPPORTUNITY TO ADD A TRANSIT COMPONENT
TO THE AUTHORIZED TRANSPORTATION STUDY )
Mr. Da Vee stated that the City has
recently learned of the possibility of adding a transit component to the
Transportation Study presently authorized through our grant from the Arizona
Department of Transportation, which could be gained to develop our program for
the elderly, handicapped, and ecnomically disadvantaged, and in order to respond
it is necessary to commit a matching share of $2,000.
Councilwoman Perkins MOVED THAT
AUTHORIZATION BE GIVEN THE CITY MANAGER TO EXPEND $2,000 FROM THE CONTINGENCY
FUND FOR THE PURPSOE OF MATCHING A GRANT FROM ARIZONA DEPARTMENT OF
TRANSPORTATION, TO ADD A TRANSIT COMPONENT TO THE AUTHORIZED TRANSPORTATION
STUDY.
i
Councilman Damiano seconded the
motion.
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 21
VOTE: Unanimous
The motion carried.
FUTURE BRIDGE CONSTRUCTION
ON BASELINE ROAD )
Mr. Da Vee explained that the
Arizona Department of Transportation plans to, by dip-section, to go under the
Superstition Freeway, but the State has indicated that they will apply the cost
of the dip-section to the construction of a bridge. Mr. Da Vee further stated
that it would be to the benefit of the City to have ADOT design this as part of
the project, and that Pinal County has indicated that they are willing to split
the balance of the cost for the bridge.
Mr. Da Vee recommended a bridge
project, and explained the alternatives in design.
Councilman Damiano MOVED THAT
AUTHORIZATION BE GIVEN THE DIRECTOR OF PUBLIC WORKS, THROUGH THE CITY MANAGER,
TO COORDINATE WITH THE ARIZONA DEPARTMENT OF TRANSPORTATION AND PINAL COUNTY TO
DEVELOP AN INTERGOVERNMENTAL AGREEMENT FOR CONSTRUCTION OF TWO-LANE BRIDGE WITH
PROVISIONS FOR EXPANSION TO FOUR-LANES IN CONJUNCTION WITH THE CONSTRUCTION OF
THE SUPERSTITION FREEWAY AT THE PLANNED DRAINAGE CHANNEL CROSSING ONE-HALF WEST
OF TOMAHAWK ROAD ON BASELINE ROAD.
Councilman Bluntschly seconded the
motion.
Mayor Hill stated that in the future
four lanes will be necessary, and the City needs to plan for that by
constructing a bridge with four at this time, especially as it is cheaper to do
that now.
Councilman Damiano commented that
Pinal County should be contributing more than they are.
Mr. Da Vee explained that the basic
need is for a two-lane bridge, and if we go for the four-lane, the City will
have to assume the cost.
Vice Mayor Bakkedahl stated that
ADOT should contribute more to the cost as they are creating the situation.
Director of Public Works Rich Broman
explained that as this is getting off the Freeway, ADOT feels that they cannot
fund all of the improvements, such as a bridge.
VOTE: Unanimous
f
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 22
The motion carried.
EXECUTIVE SESSION, WORK SESSION,
SEPTEMBER 14, 1987
EXECUTIVE SESSION, WORK SESSION,
SEPTEMBER 15, 1987 )
Councilman Damiano MOVED THAT AN
EXECUTIVE SESSION BE HELD AT 6:00 P.M. , AND A WORK SESSION AT 7:00 P.M., ON
SEPTEMBER 14, 1987, IN THE CITY COUNCIL CHAMBERS;
AND THAT AN EXECUTIVE SESSION AND WORK SESSION BE HELD AT 6:00 P.M., ON
SEPTEMBER 15, 1987, IN THE CITY COUNCIL CHAMBERS.
Councilwoman Gardner seconded the
motion.
VOTE: Unanimous
The motion carried.
INFORMATION AND REQUESTS
(COUNCIL LIAISON REPORTS)
None.
REQUESTS OF COUNCIL
Vice Mayor Bakkedahl suggested a future meeting with the Apache Villa
residents regarding Age Specific Zoning.
City Manager Bill R. Da Vee stated that the Apache Villa Board members feel
that the earliest they could meet would be in October.
Councilman Damiano commented that Mr, and Mrs. George Little were back from
vacation and in attendance at this meeting.
i
ADJOURNMENT )
Councilman Damiano MOVED THAT THE
MEETING BE ADJOURNED AT 10:43 P.M. l
f
v
*Consent Agenda Items are as follows:
F
*1. Acceptance of Regular Meeting Agenda
I
t
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 23
f
*2. Acceptance of Minutes from Regular Meeting of June 2, 1987
*3. Acceptance of Minutes from Regular Meeting of August 4, 1987
ACCEPTED THIS FTH DAY OF nr "BP , 1987, BY THE MAYOR AND
CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA.
SIGNED AND ATTESTED TO THIS gTH DAY OF nETORFR 1987•
/v"GL�
NORMAN S. HILL
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
REGULAR MEETING OF THE CITY COUNCIL
SEPTEMBER 1, 1987
PAGE 24
ORDINANCE NO. 588
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, RELATING TO THE PRIVILEGE LICENSE
TAX; ADOPTING THE "CITY TAX CODE OF THE CITY OF APACHE
JUNCTION, ARIZONA- BY REFERENCE AND FIXING THE EFFECTIVE
DATE THEREOF; REPEALING ARTICLE 8-3 OF THE APACHE JUNCTION
CITY CODE; PRESERVING RIGHTS AND DUTIES THAT HAVE ALREADY
MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER;
REPEALING ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVER-
ABILITY, PROVIDING PENALTIES FOR THE VIOLATION THEREOF;
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, AS FOLLOWS:
SECTION I IN GENERAL
That certain document known as "The City Tax Code of the City of Apache
Junction, Arizona," three copies of which are on file in the office of the
City Clerk of the City of Apache Junction, Arizona, which document was made
a public record by Resolution No. 87-46 of the City of Apache Junction,
Arizona, is hereby referred to, adopted and made a part hereof as if fully
set out in this ordinance, the provisions thereof to become effective on
the 1st day of September, 1987.
SECTION II REPEAL OF CONFLICTING SECTIONS OF CODE AND PRESERVATION
OF RIGHTS, DUTIES AND PROCEEDINGS
That Article 8-3 of the Apache Junction City Code and all ordinances
and parts of ordinances in conflict with the provisions of this ordinance
or any part of the Code adopted herein by reference are hereby repealed,
effective as of the 1st day of September, 1987.
That the repeal of Article 8-3 of the City Code, effective as of the
1st day of September, 1987, does not affect rights and duties matured or
penalties that were incurred, and proceedings that were begun before the
effective date of the repeal .
SECTION III REPEALING CONFLICTING PROVISIONS
All ordinances and parts of ordinances in conflict with the provisions
of this ordinance or any part of the Code adopted herein by reference are
hereby repealed.
SECTION IV PROVIDING FOR SEVERABILITY
If any section, subsection, sentence, clause, phrase or portion of this
ordinance or any part ofthe code adopted herein by reference 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.
ORDINANCE NO. 588
PAGE ONE OF TWO
SECTION V PROVIDING PENALTIES FOR THE VIOLATION THEREOF
Any person found guilty of violating any provision of this code shall
be guilty of a class one misdemeanor. Each day that a violation continues
shall be a separate offense. punishable as herein above described.
SECTION VI DECLARING AN EMERGENCY
WHEREAS, it is necessary for the preservation of the peace, health and
safety of the City of Apache Junction, Arizona, an emergency is declared to
exist, and this ordinance shall become immediately operative and in force
from and after the date of posting hereof.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS 1ST DAY OF SEPTEMBER 1987.
SIGNED AND ATTESTED TO THIS 1ST DAY- OF SEPTEMBER, 1987.
NORMAN S. HILL
Mayor
ATTEST:
RATHLEEN CONNELLY
City Clerk
PPROVED AS TO FORM:
LEX
I .
Cit Attorney
ORDINANCE NO. 588
PAGE TWO OF TWO
Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
11-116 INDEX
ARTICLE I - GENERAL CONDITIONS AND DEFINITIONS
I 1 Words of tense, number and gender; code references.
100 General definitions.
I Assembler
I Broker (Reg. 8A-100.1)
I Business
I Business day
I Casual activity or sale
I Combined taxes
2 Communications channel
2 Construction contracting
2 Construction contractor
2 Delivery (of notice) by the Tax-Collector
2 Delivery, installation, or other direct customer
services (Reg. 8A-100.2)
2 Engaging
2 Equivalent excise tax
2 Federal government
2 Food
2 Hotel
3 Job printing
3 Lessee
3 Lessor
3 License (for use)
3 Lodging (lodging space)
3 Manufacturer
3 Manufacturing
3 Mining and metallurgical supplies
3 Modifier
4 Nonprofit entity
4 Occupancy (of real property)
,4 Out-of-City sale
4 Out-of-State sale
4 Owner-builder
4 Person
4 Primary health care facility
5 Prosthetic
5 Receipt (of notice) by the taxpayer
5 Rental equipment
5 Rental supply
5 Repairer
"5 Resides within the City
6 Restaurant
6 Retail sale (sale at retail)
6 Retailer (Reg. 8A-100.3)
Index to Apache Junction Tax Code
r
I cF
PAGES SECTION DESCRIPTION
ARTICLE I - GENERAL CONDITIONS AND DEFINITIONS (ctd)
100 (ctd) General definitions (ctd)
6 Sale
6 Speculative builder
6 Supplier
6 Tax Collector
6 Taxpayer
6 Telecommunication service
6 Utility service
110 Definitions: income-producing capital equipment. (Reg. 8A-110.1)
7-8 (a) includes, subject to (d):
(1) manufacturing equipment and job-printing equipment
(Reg. 8A-110.2)
(2) telecommunications equipment
{3} electrical generation and transmission
(4) pipes 4" I.D.
(5) airplanes, etc.
(6) railroad rolling stock
(7) oil/gas drilling equipment
(8) urban mass transit
{9} telecommunication equipment "rented" to customers
Ic (10) mining and metallurgical equipment
(11) (Reserved)
8 (b) ancillary equipment to remove waste products, except (d).
8 (c) repair and replacement parts for (a) or (b).
8 (d) definition does not include:
(1) unit cost less than $250 or capitalized
(2) janitorial equipment and supplies
{3} hand tools
(4) office equipment, furniture, supplies
(5) sales/distribution
(6) research
(7) motor'vehicles licensed for road use
(8) real property
115 Definitions: computer software; custom computer programming
(Reg 8A-115.1)
8 (a) computer software
9 (b) custom computer programming
9 120 (Reserved)
42-
Index to Apache Junction Tax Code
PAGES SECTION DE5CRIPTION
ARTICLE 11 - DETERMINATION OF GROSS INCOME
200 Determination of gross income: in general.
10 (a) Includes:
(1) value from sales of property or service
(2) total sale or lease price
(3) receipts, cash, barter, exchange, reduction of debt, etc.
(4) including deposits and deferred payments
(Reg. 8A-200.1)
10 (b) Barter, exchange, trade-outs, etc.
10 (c) No deduction for cost, losses, etc.
10 210 Determination of gross income: transactions between affiliated
companies or persons.
10 220 Determination of gross income: artificially contrived transactions.
230 Determination of gross income based upon method of reporting.
11 (a) Cash basis
11 (b) Accrual basis
240 Exclusion of cash discounts, returns, refunds, trade-in values,
vendor-issued coupons, and rebates from gross income.
11-12 (a) (1) cash discounts
(2) returns
(3) trade-ins
(4) vendor-issued coupons
(5) rebates
12 (b) subsequent period reduction may still be excluded if
reported as taxable in prior period.
250 Exclusion of combined tax from gross income; itemization; notice;
limitations.
12 (a) when tax separately collected/charged
(1) remittance of all tax collected/charged (Reg. 8A-250.1).
(2) itemization
12 (b) when tax has not been separately charged/collected.
260 Exclusion of motor vehicle fees and taxes from gross income;
limitations.
13 (a) registration fees, license fees and taxes.
13 (b) F.E.T. on heavy trucks and trailers.
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j Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE II - DETERMINATION OF GROSS INCOME (ctd)
270 Exclusion of gross income of persons deemed not engaged in
business.
13 (a) Definitions
(1) Federally exempt organization
(2) Governmental entity
(3) Non-licensed business
(4) Proprietary club
(5) Public educational entity
14 (b) Governmental entities, non-licensed businesses, and public
educational entities do not have taxable gross income except
"proprietary activities" of municipalities (Reg. 8A-270.1)
14 (c) Federally exempt organizations and proprietary clubs do not
have taxable gross income except:
(1) proprietary clubs 15% rule on revenue (Reg. 8A-270.2)
(2) unrelated business income
(3) (Reserved)
14 (d) Sales or leases to (a) taxable unless licensed and paying a tax
/ on resales/leases income.
14 (e) Franchisees and concessionaires of such do not share their
exemption.
14 (f) (Reserved)
15 280 (Reserved)
15 285 (Reserved)
15 290 (Reserved)
ARTICLE III - LICENSING AND RECORDKEEPING
300 Licensing requirements.
16 (a) Who must apply (Reg. 8A-300.1)
(1) all subject to Privilege Tax
(2) (Reserved)
(3) Rental occupancy tax
16 (b) Multiple activities at one location
16 (c) Limitation
305 Special licensing requirements.
16 , (a) Partnerships
16 (b) Corporations
16 (c) Multiple locations
i 16 (d) (Reserved)
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE III - LICENSING AND RECORDKEEPING (ctd)
310 Licensing: duration of license; transferability; display.
17 (a) Valid until surrendered/cancelled/revoked.
17 (b) Non-transferable between owners or locations, and must be
publicly displayed at business location.
17 (c) Replacement of license treated as new license for purposes of
application and fee.
17 (d) (Reserved)
320 Licensingi cancellation; revocation.
17 (a) Cancellation if inactive.
17 (b) Revoked for failure to comply.
17 (c) Notice and Hearing
17 (d) Reinstatement
18 330 Operating without a license.
r 350 Recordkeeping requirements. (Reg. 8A-350.1, Reg. 8A-350.2,
Reg. SA-350.3)
18 (a) Must maintain books and records for limitation period and
make available to Tax Collector during any business day.
18 (b) Tax Collector can specify books and records kept after audit
reveals inadequate recordkeeping.
360 Recordkeeping: claim of exclusion, exemption, deduction, or credit;
documentation; liability. (Reg. 8A-360.1, Reg. 8A-360.2)
18 (a) Claim of exemption must be documented.
18 (b) Vendee's claim of exemption shifts tax liability to vendee.
370 Inadequate or unsuitable records.
19 If records inadequate, taxpayer must either:
(1) provide other suitable records, or
(2) correct/reconstruct records.
ARTICLE IV - PRIVILEGE TAXES
400 Imposition of Privilege Taxes; presumption.
20 (a) Taxes imposed:
(1) privilege taxes on gross incomes specified below
(2) privilege taxes on rental occupancy
20 (b) Taxes imposed by this Chapter in addition to others.
20 (c) Presumption.
20 (d) Limitation of exemptions, deductions, and credits.
J 405 Advertising. (Reg. 8A-405.1, Reg. 8A-405.2)
20-21 (a) Measure of tax; rate; definition of "local advertising".
21 (b) (Reserved)
-I5-
1 Index to Apache Junction Tax Code a
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
410 Amusements, exhibitions, and similar activities.
21 (a) Measure of tax; rate.
(I) Charges for admission or amusement.
(2) health spas, fitness centers and related activities
21 (b) (Reserved)
415 Construction contracting: prime contractors. (Reg. 8A-415.1,
Reg. 8A-415.2)
21 (a) Measure of tax; rate.
(1) Exclusion of groundwater measuring devices.
(2) (Reserved)
21 (b) Deductions.
(1) Subcontracting
(2) 35%
22 (c) Subcontractors.
(1) Working for another contractor.
(2) Working for an owner building for sale.
416 Construction contracting: speculative builders. (Reg. 8A-416.1,
Reg. 8A=416.2)
22 (a) Measure of tax; rate.
(1) sales price at close of escrow
(2) improved real property
(3) sale
22 (b) Exclusions
(1) prior value for reconstruction
(2) land not deductible
(3) (Reserved)
22 (c) Deductions & credits per Section 8A-418.
417 Construction contracting: owner-builders who are not speculative
builders.
23 (a) Measure of tax; rate.
(1) payments to subcontractors
(2) purchases of building materials
23 (b) Deductions & credits per Section 8A-418.
23 (c) Reporting; statute of limitations.
23 (d) (Reserved)
418 Construction contracting: deductions and tax credits available to
speculative builders and owner-builders.
23 (a) 35% deduction
/ 23 (b) Tax credits
(1) City taxes paid on materials purchases
(2) City taxes paid on construction contracting
(3) Tax credits must relate to income reported.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
24 420 Feed at wholesale
(a) Measure of tax; rate.
(b) Deductions
(1) out-of-City sales
(2) out-of-State sales
425 Job printing. (Reg. 8A-425.1)
24 (a) Measure of tax; rate.
24 (b) Deductions
(1) job printing for resale
(2) out-of-City sales
(3) out-of-State sales
(4) (Reserved)
24 430 Mining, timbering, and other extraction.
(a) Measure of tax; rate.
(1) mining and metallurgy, but not sand and gravel
(2) timbering
(3) oil and gas extraction/refining
24 (b) Tax based on location of activity, not location of sale.
24 (c) If shipped out-of-state unsold, tax based on value at time of
shipment.
435 Publishing and periodicals distribution. (Reg. 8A-435.1)
25 (a) Measure of tax; rate.
(1) publishing in the City
(2) distribution of periodicals not published in the City
25 W Location of publication
25 (c) Subscription income
25 W Circulation -
25 (e) Allocation of taxes between cities and towns.
(1) allocation by circulation in taxing municipalities
(2) allocation of balance between locations of publication
25 440 Rental occupancy tax
445 Rental, leasing, and licensing for use of real property. (Reg.
8A-445.1, Reg. 8A-445.2, Reg. 8A-445.3)
26 (a) Measure of tax, rate.
(1) reimbursements for property tax, repairs, improvements
(2) charges for services
(3) special case telecommunication services
t 26 (b) Exemption for utility reimbursement based upon separate
meter
26 (c) Exemption for primary health care facilities income.
26 (d) Exemption for joint pole use charges.
26 (e) (Reserved)
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
445 Rental, leasing, and licensing for use of real property. (ctd)
26 (f) (Reserved)
26 (g) (Reserved)
26 (h) (Reserved)
26 G) (Reserved)
26 447 (Reserved)
450 Rental, leasing or licensing for use of tangible personal property.
(Reg. 8A-450.1, Reg. 8A-450.2, Reg. 8A-450.3)
26 (a) Measure of tax; rate.
26 (b) Special provisions relating to long-term motor vehicle leases
26 (c) Exemptions
(1) rent for re-rent
(2) semi-permanently or permanently installed in another
taxing city (Reg. 8A-450.4)
(3) motion picture films, etc. to amusement, etc. businesses
(4) (A) prosthetics
(B) income-producing capital equipment
(C) mining and metallurgical supplies.
(5) to a non-profit primary health care facility
(6) delivery, installation, repair, maintenance charges
(7) joint pole use charges
(8) (Reserved)
(9) (Reserved)
455 Restaurants and bars.
27 , (a) Measure of tax; rate. (Reg. 8A-455.1)
27 (b) Delivery, set-up, and clean-up charges of off-premises
restaurants
460 Retail sates: measure of tax; burden of proof; exclusions.
28 (a) Measure of tax; rate (Reg, 8A-460.2,'Reg. 8A-460.3,
Reg. 8A-460.6)
28 (b) Burden of proof
28 (c) Exclusions
(1) stocks, bonds, etc.
(2) lottery tickets
(3) bullion and monetized bullion (Reg. 8A-460.5)
(4) taxable elsewhere in this Chapter (Reg. 8A-460.1)
(5) professional services (Reg. 8A-460.4)
28 (d) (Reserved)
i 28
(e) Seller's business location takes precedence between cities
28 (f) Tax liability based upon seller's location
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
465 Retail sales: exemptions.
28 (a) sales for resale (Reg. 8A-465.3)
28 (b) out-of-City sales and out-of-State sales
28 (c) delivery, installation, or other direct customer services
28 (d) repair labor (Reg. 8A-465.1)
29 (e) (Reserved)
29 W prosthetics
29 (g) income-producing capital equipment
29 (h) rental equipment and rental supplies
29 (i) mining and metallurgical supplies
29 (j) fuels subject to Arizona fuel use tax
29 W sales to a licensed construction contractor
29 (1) (Reserved)
29 (m) component or ingredient parts sold to job printers,
manufacturers, or publishers
29 (n) sales to the Federal government:
(1) 100% by assembler, manufacturer, modifier, repairer
'r (2) - 50% otherwise
29 (o) food to restaurants
29 (p) sales to non-profit primary health care facilities
29 (q) (Reserved)
30 (r) (Reserved)
(1) (Reserved)
(2) (Reserved)
(3) (Reserved)
(4) (Reserved)
30 (s) groundwater measuring devices
30 (t) (Reserved)
30 '(u) (Reserved)
30 (v) (Reserved)
30 (w) (Reserved) '
-30 W (Reserved)
30 (y) (Reserved)
30 (z) (Reserved)
470 Telecommunication services. (Reg. 8A-470.1)
30 (a) Measure of tax; rate
(1) telecommunication services definition
(2) gross income definition
31 W Resale telecommunication services
31 (c) Interstate transmissions
31 (d) Tax credit for franchise and license fees paid
31 (e) Cable TV income
}
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l Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
475 Transporting for hire. (Reg. 8A-475.1)
31 (a) Railroads
31 (b) Pipelines
31 (c) Aircraft (freight only)
31 (d) Motor vehicles, except:
(1) income subject to the State Ton-Mile Tax
(2) governmentally adopted urban mass transit
(3) (Reserved)
(4) • (Reserved)
480 Utility services.
31 (a) Measure of tax; rate.
(1) services to in-City residents
(2) (Reserved)
32 W Sales.of natural gas for generation of electricity deemed retail
sales
32 (c) Resale utility services
}
32 (d) Tax credit for franchise fees paid
ARTICLE V - ADMINISTRATION
500 Administration of this Chapter; rule making.
33 (a) Administration vested in the Tax Collector
33 (b) Tax Collector shall prescribe forms and procedures
33 (c) City Council approves Regulations
510 Divulging of information prohibited; exceptions.
33 (a) Divulging information prohibited except as provided here
33 "(b) City Council authorized examination by another U.S.
jurisdiction
33 W Tax Collector can provide information to another Arizona
privilege tax administration
33 W Successors, receivers, trustees, etc.
33 (e) City Attorney authorized to collection agencies
33 W Other Arizona City when tax paid to wrong city
34 (g) Others involved in allocation of publishing tax
34 (h) By agreement approved by City Council with another
jurisdiction.
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Index to Apache Junction Tax Code
1
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
520 Reporting and payment of tax.
34 (a) Returns (Reg. SA-520.1)
34 (b) Payment
34 (c) Requirement of security
34 (d) Method of reporting: "cash basis" or "accrual basis" (Reg.
$A-520.2)
(1) all income to be reported by same method
(2) special considerations for construction contractors:
(A) prime contractors
(B) speculative builders
(C) other owner-builders
530 When tax due; when delinquent; verification of return; extensions.
34 (a) Report on same date as state sales tax.
35 (b) (Reserved)
35 (c) (Reserved)
35 (d) (Reserved)
35 (e) Extensions
540 Interest and civil penalties.
35 (a) (Reserved)
35 (b) (Reserved)
35 (c) (Reserved)
35 (d) (Reserved)
35 (e) (Reserved)
35 (f) (Reserved)
545 Deficiencies; when inaccurate return is filed; when no return is
filed; estimates.
35 (a) Tax Collector may recompute or estimate
(1) (Reserved)
(2) (Reserved)
35 (b) Estimates; presumption
550 Limitation periods.
35 (a) Deficiency assessments
36 (b) (Reserved)
36 (c) No limitation if no return filed, fraud, operating without
license
36 (d) Special provisions relating to owner-builders
i
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
555 Tax Collector may examine books and other records; failure to
provide records.
36 (a) Tax Collector can examine books and records
36 (b) (Reserved)
36 (c) (Reserved)
36 (d) Tax Collector may use any generally accepted auditing
standards or procedures
36 (e) Failure to keep or provide adequate records allows Tax
Collector can estimate
36 (f) (Reserved)
560 Erroneous payment of tax; credits and refunds; limitations.
36 (a) Tax Collector may authorize credits and refunds. Credits
cancelled within 1 year after issuance
36 (b) (Reserved)
36 (c) (Reserved)
36 (d) (Reserved)
36 (e) (Reserved)
36 (f) Allowance/denial of credit is subject to appeal per Section
SA-570.
37 (g) Refunds made from Privilege Tax revenue accounts
565 Payment of tax to the incorrect Arizona city or town.
37 (a) Tax paid to wrong city will be refunded/assessed to correct
city for the period 48 months from date of request. Only
penalty or interest actually paid to other city relating to tax
requested
37 (b) A.R.S. Section 42-1452 will govern.
37 (c) "Other city" means State Department of Revenue if city in
State Collection Program.
567 Allocation of tax on retail sales when more than one city or town
has nexus.
.37 (a) Conditions for allocation -- tax to be shared equally
37 W Mobile equipment
37-38 (c) Shared equally
38 (d) Allocation follows rules of SA-565
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Index to Apache Junction Tax Code
i
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
570 Administrative review; petition for hearing or for redetermination;
hearing or redetermination; finality of order.
38 (a) Informal conference with auditor prior to assessment
38 W Payment of tax under protest
38 (c) Administrative review
(1) filing a petition
{2} (Reserved)
(3) (Reserved)
(4) (Reserved)
(5) hearings
(6) - (Reserved)
(7) (Reserved)
38 (d) (Reserved)
38 (e) (Reserved)
571 Jeopardy assessments. (Reg. 8A-571.1)
38 (a) If jeopardy assessment, Tax Collector will notify taxpayer at
time of assessment, and demand immediate payment
38 (b) Taxpayer must file request for administrative review together
+r with posting bond or collateral within 10 days
1 38 (c) (Reserved)
38 (d) (Reserved)
38 (e) (Reserved)
575 Judicial review.
39 (a) Taxpayer's appeal
39 (b) (Reserved)
39 (c) (Reserved)
39 (d) (Reserved)
39 (e) No estoppel
39 . (f) Counterclaims
39 577 (Reserved)
580 Criminal penalties
39 (a) It is unlawful to knowingly or willfully:
(I) fail/refuse to file a return
(2) fail/refuse to pay tax when due
(3) make false/fraudulent return
(4) make false/fraudulent statement to claim tax exemption
(5) fail/refuse to permit lawful examination of books or
records
(6) fail/refuse to remit taxes collected from customer
(7) advertise that tax is not a consideration of price
(8) fail/refuse to obtain a Privilege License
(9) falsify/forge document to obtain an exemption
39 (b) Such acts constitute a Class One Misdemeanor
40 (c) In addition, knowingly swearing to a false statement subject to
laws of perjury
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Index to Apache Junction Tax Code
•r
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
590 Civil actions.
40 (a) Liens
(1) City can file a lien for tax, penalty or interest due
(2) Lien recording and filing
(3) Filing a lien does not preclude any other collection
methods
(4) Liens can be released in whole or in part upon payment
40 (b) Actions to recover tax
595 Collection of taxes when there is succession in and/or cessation of
business.
40 (a) This is in addition to any other provisions in the City Code
41 (b) Taxes due are lien on property
41 (c) Foreclosure or similar transfer of improved real property
41 (d) Back taxes due are liability of:
(1) seller if received Certificate at time of sale
(2) buyer otherwise
ARTICLE VI - (Reserved)
! 42 600 (Reserved)
42 610 (Reserved)
42 620 (Reserved)
42 630 (Reserved)
42 640 (Reserved)
42 650 (Reserved)
42 660 (Reserved)
REGULATIONS
R 1 100.1 Brokers.
RI-R2 100.2 Delivery, installation, or other direct customer services.
R3 100.3 Retailers.
R3 110.1 Income-producing capital equipment: in general.
R3-R5 110.2 Income-producing capital equipment: manufacturing equipment; job i
printing equipment.
R5-R8 115.1 Computer hardware, software, and data services.
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Index to Apache Junction Tax Code
r
PAGES SECTION DESCRIPTION
REGULATIONS (ctd)
R8 120.1 (Reserved)
R8 200.1 When refundable deposits are included in gross income.
R8 250.1 Excess tax collected.
R8 270.1 Proprietary activities of municipalities are not deemed activities of
a governmental entity.
R9 270.2 Proprietary clubs.
R9-R10 300.1 Who must apply for a license.
R 10-R 11 350.1 Recordkeeping: income.
R11-R12 350.2 Recordkeeping: expenditures.
R 12 350.3 Recordkeeping: out-of-City and out-of-State sales.
R 12 360.1 Proof of exemption: sale for resale; sale, rental, lease, or license
of rental equipment.
R13-R14 360.2 Proof of exemption: exemption certificate.
R 15 405.1 Local advertising examples.
R15 405.2 Advertising activity within the City.
R15-R16 415.1 Distinction between the categories of construction contracting.
R16-R17 415.2Distinction between construction contracting and certain related
activities.
R 17-R 18 416.1 Speculative builders: homeowner's bona fide non-business sale of a
family residence.
R 18-R 19 416.2 Reconstruction contracting.
R 19 425.1 Distinction between job printing and certain related activities.
R 19 435.1 Distinction between publication of periodicals and certain related
activities.
R20 445.1 (Reserved)
R20 445.2 Rental, leasing, and licensing of real property as lodging:
refundable and non-refundable deposits.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
REGULATIONS (ctd)
R20 445.3 Rental, leasing, and licensing of real property as lodging: room and
board; furnished lodging.
R20 447.1 (Reserved)
R20-R21 450.1 Distinction between rental, leasing, and licensing for use of tangible
personal property and certain related activities.
R21 450.2 Rental, leasing, and licensing for use of tangible personal property:
membership fees; other charges.
R21 450.3 Rental, leasing, and licensing for use of equipment with operator.
R21-R22 450.4 Rental, leasing, and licensing for use of tangible personal property:
semi-permanently or permanently installed tangible personal
property.
R22 455.1 Gratuities related to restaurant activity.
R22-R23 460.1 Distinction between retail sales and certain other transfers of
tangible personal property.
= R23 460.2 Retail sales: trading stamp company transactions.
R24 460.3 Retail sales: membership fees of retailers.
R24-R25 460.4 Retail sales: professional services.
R25 460.5 Retail sales: monitized bullion; numismatic value of coins.
R25 460.6 Retail sales consignment sales.
1126, 465.1 Retail sales: repair services.
R26 465.2 (Reserved)
R26-R27 465.3 Retail sales: sale of containers, paper products, and labels.
R27 465.4 (Reserved)
R27 470.1 Telecommunication services.
R27 475.1 Distinction between transporting for hire and certain related
activities.
R28 520.1 (Reserved)
R28 520.2 Change of method of reporting.
R28 555.1 (Reserved)
R28 571.1 Collection of tax in jeopardy.
-I16-
r CHAPTER SA - PRIVILEGE AND EXCISE TAXES
Article I - General Conditions and Definitions
Sec. SA-l. Words of tense, number and gender; code references.
(a) For the purposes of this Chapter, all words of tense, number, and
gender shall comply with A.R.S. Section 1-214 as amended.
(b) For the purposes of this Chapter, all code references, unless specified
otherwise, shall:
(1) refer to this City Code.
(2) be deemed to include all amendments to such code references.
Sec. SA-100. General definitions.
For the purposes of this Chapter, the following definitions apply:
"Assembler" means a person who unites or combines products, wares, or articles of
manufacture so as to produce a change in form or substance of such items without
changing or altering component parts.
",Broker" means any person engaged or continuing in business who acts for another
for a consideration in the conduct of a business activity taxable under this Chapter,
and who receives for his principal all or part of the gross income from the taxable
activity.
I
"Business" means all activities or acts, personal or corporate, engaged in and
caused to be engaged in with the, object of gain, benefit, or advantage, either
direct or indirect, but not casual activities or sales.
"Business Day" means any day of the week when the Tax Collector's office is open
for the public to conduct the Tax Collector's business.
"Casual Activity or Sale" means a transaction of an isolated nature made by a
person who neither represents himself to be nor is engaged in a business subject to'
a tax imposed by this Chapter. However, no sale, rental, license for use, or lease
transaction concerning real property nor any activity entered into by a business
taxable by this Chapter shall be treated, or be exempt, as casual. This definition
shall include sales of used capital assets, provided that the volume and frequency
of such sales do not indicate that the seller regularly engages in selling such
property.
"Combined Taxes" means the sum of all applicable Arizona Transaction Privilege
and Use Taxes; all applicable transportation taxes imposed upon gross income by
this County as authorized by Chapter 8.3, Title 42, Arizona Revised Statutes; and
all applicable taxes imposed by this Chapter.
i
-1-
"Communications Channel" means any line, wire, cable, microwave, radio signal,
light beam, telephone, telegraph, or any other electromagnetic means of moving a
P
message. j
"Construction Contracting" refers to the activity of a construction contractor.
"Construction Contractor" means a person who undertakes to or offers to
undertake to, or purports to have the capacity to undertake to, or submits a bid to,
or does himself or by or through others, construct, alter, repair, add to, subtract
from, improve, move, wreck, or demolish any building, highway, road, railroad,
excavation, or other structure, project, development, or improvement to real
property, or to do any part thereof. "Construction contractor" includes
subcontractors, specialty contractors, prime contractors, and any person receiving
consideration for the general supervision and/or coordination of such a construction
project. This definition shall govern without regard to whether or not the
construction contractor is acting in fulfillment of a contract.
"Delivery (of Notice) by the Tax Collector" means "receipt (of notice) by the
taxpayer".
"Delivery. Installation, or Other Direct Customer Services" means services or
labor, excluding repair labor, provided by a taxpayer to or for his customer at the
time of transfer of tangible personal property; provided further that the charge for
such labor or service is separately billed to the customer and maintained separately
in the taxpayer's books and records.
"Engaging", when used with reference to engaging or continuing in business,
r" includes the exercise of corporate or franchise powers.
"Equivalent Excise Tax" means either:
F (1) a Privilege or Use Tax levied by another Arizona municipality upon the
transaction in question, and paid either to such Arizona municipality
directly or to the vendor; or
(2) an excise tax levied by a political subdivision of a state other than
Arizona upon the transaction in question, and paid either to such
jurisdiction directly or to the vendor.
"Federal Government" means the United States Government, its departments and*
agencies; but not including national banks or federally chartered or insured banks,
savings and loan institutions, or credit unions.
"Food" means any items intended for human consumption as defined by rules and
regulations adopted by the Department of Revenue, State of Arizona, pursuant to
A.R.S. Section 42-1387. Under no circumstances shall "food" include alcoholic
beverages or tobacco, or food items purchased for use in conversion to any form of
alcohol by distillation, fermentation, brewing, or other process.
"Hotel" means any public or private hotel, inn, hostelry, tourist home, house,
motel, rooming house, apartment house, trailer, or other lodging place within the
City offering lodging, wherein the owner thereof, for compensation, furnishes
lodging to any transient, except foster homes, rest homes, sheltered care homes,
nursing homes, or primary health care facilities.
-2-
"Job Printing" means the activity of copying or reproducing an article by any
r means, process, or method. "Job printing" includes engraving of printing plates,
embossing, copying, micrographics, and photo reproduction.
"Lessee" includes the equivalent person in a rental or licensing agreement for all
purposes of this Chapter.
"Lessor" includes the equivalent person in a rental or licensing agreement for all
purposes of this Chapter.
"Licensing (for Use)" means any agreement between the user ("licensee") and the
owner or the owner's agent ("licensor") for the use of the licensor's property
whereby the licensor receives consideration, where such agreement does not
qualify as a "sale" or "lease" or "rental" agreement.
"Lodging (Lodging Space)" means any room or apartment in a hotel or any other
provider of rooms, trailer spaces, or other residential dwelling spaces; or the
furnishings or services and accommodations accompanying the use and possession
of said dwelling space, including storage or parking space for the property of said
tenant.
"Manufacturer" means a person engaged or continuing in the business of
fabricating,producing, or manufacturing products, wares, or articles for use from
other forms of tangible personal property, imparting to such new forms, qualities,
properties, and combinations.
"Manufacturing
(1) For the purposes of this Chapter, an activity shall be considered
"manufacturing" only if such activity is not defined as something else in
this Chapter and if it involves the physical combining (but not merely
mixing), separating (but not merely sorting or sifting), or otherwise
physically changing of tangible personal property ("raw materials") into
another form of tangible personal property available for sale ("finished
goods").
(2) The activity of manufacturing shall be deemed to begin when the first
act of physically combining (but not merely mixing), separating (but not
merely sorting or sifting), or otherwise physically changing tangible
personal property ("raw materials") occurs; the activity will be deemed
to end when the last act of physically combining, separating, or
otherwise physically changing the tangible personal property ends.
r
"Mining and Metallurgical Supplies" means all tangible personal property acquired
by persons engaged in activities defined in subsection SA-430(a)(1) for such use.
This definition shall not include:
(1) janitorial equipment and supplies.
(2) office equipment, office furniture, and office supplies.
(3) motor vehicles licensed for use upon the highways of the State.
"Modifier" means a person who reworks, changes, or adds to products, wares, or
articles of manufacture.
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"Nonprofit Entity" means any entity organized and operated exclusively for
charitable purposes, or operated by the Federal Government, the State, or any
political subdivision of the State.
"Occupancy (of Real Property)" means any occupancy or use, or any right to occupy
or use, real property including any improvements, rights, or interests in such
property.
"Out-of-City Sale" means the sale of tangible personal property and job printing if
all of the following occur:
(1) transference of title and possession occur without the City; and
(2) the stock from which such personal property was taken was not within
the corporate limits of the City; and
(3) the order is received at a permanent business location of the seller
located outside the City; which location is used for the substantial and
regular conduct of such business sales activity. In no event shall the
place of business of the buyer be determinative of the situs of the
receipt of the order.
For the purpose of this definition it does not matter that all other indicia of
business occur within the City, including, but not limited to, accounting, invoicing,
payments, centralized purchasing, and supply to out-of-City storehouses and out-
of-City retail branch outlets from a primary storehouse within the City.
"Out-of-State Sale" means the sale of tangible personal property and job printing if
all of the following occur:
(1) The order is placed from without the State of Arizona; and
(2) the order is placed by other than a resident of the State to be
determined in a manner similar to "resides within the City"; and
(3) the property is delivered to the buyer at a location outside the State;
and
(4) the property is purchased for use outside the State.
"Owner-Builder" means an owner or lessor of real property who, by himself or by or
through others, constructs or has constructed or reconstructs or has reconstructed
any improvement to real property.
"Person" means an individual, firm, partnership, joint venture, association,.
corporation, estate, trust, receiver, syndicate, broker, the Federal Government,
this State, or any political subdivision or agency of this State. For the purposes of
this Chapter, a person shall be considered a distinct and separate person from any
general or limited partnership or joint venture or other association with which such
person is affiliated. A subsidiary corporation shall be considered a separate person
from its parent Corporation for purposes of taxation of transactions with its
parent corporation.
"Primary Health Care Facility" means any hospital or any licensed nursing care
institution or licensed residential care institution, licensed pursuant to Chapter 4,
Title 36, Arizona Revised Statutes, or any licensed kidney dialysis center.
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"Prosthetic" means any of the following tangible personal property if such items
are prescribed or recommended by a licensed podiatrist, chiropractor, dentist,
physician or surgeon, naturopath, optometrist, osteopathic physician or surgeon,
psychologist, or veterinarian:
(1) any man-made device for support or replacement of a part of the body,
or to increase acuity of one of the senses. Such items include:
prescription eyeglasses; contact lenses; hearing aids; artificial limbs or
teeth; neck, back, arm, leg, or similar braces.
(2) insulin and insulin syringes, sold with or without a prescription.
(3) hospital beds, crutches, wheelchairs, similar home health aids, or
corrective shoes.
(4) drugs or medicine, including oxygen.
(5) equipment used to generate, monitor, or provide health support
systems, such as respiratory equipment, oxygen concentrator, dialysis
machine.
"Receipt (of Notice) by the Taxpayer" means the earlier of actual receipt or the
first attempted delivery by certified United States mail to the taxpayer's address
of record with the Tax Collector.
"Rental Equipment" means tangible personal property sold, rented, leased, or
licensed to customers to the extent that the item is actually used by the customer
for rental, lease, or license to others; provided that:
(1) such rental, lease, or license by the vendee to another is subject to the
tax imposed by this Chapter or an equivalent excise tax; and
(2) the vendee is regularly engaged in the business of rents g leasing, or
licensing such property for a consideration, and is properly licensed
therefor; and
1 (3) the item so claimed as "rental equipment" is not used by the person
claiming the exemption for any purpose other than rental, lease, or
license for compensation, to an extent greater than fifteen percent
(15%) of its actual use.
"Rental Supply" means an expendable or nonexpendable repair or replacement part
sold to become part of "rental equipment", provided that:
(1) the documentation relating to each purchased item so claimed
specifically itemizes to the vendor the actual item of "rental.
equipment" to which the purchased item is intended to be attached as a
repair or replacement part; and
(2) the vendee is regularly engaged in the business of renting; leasing, or
licensing such property for a consideration, and is properly licensed
therefor; and
(3) the item so claimed as "rental equipment" is not used by the person
claiming the exemption for any purpose other than rental, lease, or
license for compensation, to an extent greater than fifteen percent
(15%) of its actual use.
"Repairer" means a person who restores or renews products, wares, or articles of
manufacture.
"Resides within the City" means in cases other than individuals, whose legal
addresses are determinative of residence, the engaging, continuing, or conducting
of regular business activity within the City.
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r "Restaurant" means any business activity where articles of food, drink, or r
condiment are customarily prepared or served to patrons for consumption on or off
the premises, also including bars, cocktail lounges, the dining rooms of hotels, and
all caterers. For the purposes of this Chapter, a "fast food" business, which
includes street vendors and mobile vendors selling in public areas or at
entertainment or sports or similar events, who prepares or sells food or drink for
consumption on or off the premises is considered a "restaurant", and not a
"retailer".
"Retail Sale (Sale at Retail)" means the sale of tangible personal property, except
the sale of tangible person property to a person regularly engaged in the business of
selling such property.
"Retailer" means any person engaged or continuing in the business of sales of
tangible personal property at retail.
"Sale" means any transfer of title or possession, or both, exchange, barter,
conditional or otherwise, in any manner or by any means whatsoever, including
consignment transactions and auctions, of property for a consideration. "Sale"
includes any transaction whereby the possession of such property is transferred but
the seller retains the title as security for the payment of the price. "Sale" also
includes the fabrication of tangible personal property for consumers who, in whole
or in part, furnish either directly or indirectly the materials used in such
fabrication work.
"Speculative Builder" means an owner-builder who sells or contracts to sell
improved real property on or before the expiration of twenty-four (24) months
after the improvements of the real property sold are substantially complete and
the construction or reconstruction has passed final inspection and the permit holder
has been issued a Certificate of Occupancy by the City; provided, however, that in
cases where no permit for construction or Certificate of Occupancy was issued by
the City, "substantially complete" shall mean "ready for immediate occupancy."
"Supplier" means any person who rents, leases, licenses, or makes sales of tangible
personal property within the City, either directly to the consumer or customer or
to wholesalers, jobbers, fabricators, manufacturers, modifiers, assemblers,
repairers, or those engaged in the business of providing services which involve the
use, sale, rental, lease, or license of tangible personal property.
"Tax Collector" means the Revenue Officer/City Clerk or their designee or agent
for all purposes under this Chapter.
"Taxpayer" means any person liable for any tax under this Chapter.
"Telecommunication Service" means any service or activity connected with the
transmission or relay of sound, visual image, data, information, images, or material
over a communications channel or any combination of communications channels.
"Utility Service" means the producing, providing, or furnishing of electricity,
electric lights, current, power, gas (natural or artificial), or water to consumers or
ratepayers.
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Sec. SA-I 10. Definitions: Income-producing capital equipment
(a) The following tangible personal property, other than items excluded in
subsection (d) below, shall be deemed "income-producing capital
e ut ment" for the purposes of this Chapter:
I machinery or equipment which is purchased or leased for use
primarily during the activity of manufacturing or job printing.
Machinery or equipment having multiple uses shall be included
only if such machinery and equipment is not used by the vendee
for any purpose other than during the activity of manufacturing or
job printing to an extent greater than fifteen percent (15%) of its
actual use.
(2) central office switching equipment; switchboards; private branch
exchange equipment; microwave, radio, and other
electromagnetic carrier wave transmission equipment; coaxial
cable; when so used by persons engaged in the business of
providing telecommunication services.
(3) machinery, equipment, or transmission lines used directly in the
production or transmission of electrical power, but not including
items used for distribution or transformers and -control equipment
used at transmission substation sites. For the purposes of this
Chapter, all machinery, equipment, or transmission lines rated for
power of less than sixty thousand (60,000) volts or actually used
for power of less than 60,000 volts shall be considered to be used
for distribution.
(4) pipes, or valves for such pipes, four inches (4") in interior
diameter or larger, used for transporting oil, natural gas,
^" artificial gas, water, or coal slurry.
(5) airplanes, navigational and communication instruments, and other
accessories and related equipment used by airlines holding a
federal or state certificate of public convenience and necessity
or foreign air carrier permit for air transportation; provided that
such tangible personal property is used in conjunction with ,or
become part of aircraft to be used in transportation of persons,
property, or U.S. Mail in intrastate, interstate, or foreign air
transportation for hire.
(6) rolling, stock, rails, ties, or signal control equipment used by
railroads directly in the transportation of persons or property in'
intrastate or interstate transportation for hire.
(7) machinery or equipment used directly by oil or gas drilling or
extracting companies in the drilling for or in the process of
extracting oil or gas from the earth for commercial purposes.
(8) tangible personal property actually and directly used or consumed
by the business of operating any bus company or other urban mass
transit system, when such system is operated by a governmental
entity or by any person contracting with such a governmental
entity as part of a governmentally adopted and controlled
program to provide urban mass transportation.
1 )
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(9) metering, monitoring, receiving, and transmitting equipment
acquired by persons engaged in the business of providing utility
services or telecommunications services; but only to the extent
that such equipment is to be used by the customers of such
persons and such persons separately charge or bill their customers
for use of such equipment.
(10) machinery and equipment used directly in mining and
metallurgical activity, as prescribed by Subsection 8A-430(a)(1),
by persons engaging or continuing in the business of such activity.
01) (Reserved)
(b) The term "income-producing capital equipment" shall further include
ancillary machinery and equipment used for the treatment of waste
products created by the business activities which are allowed to
purchase "income-producing capital equipment" defined in subsection
(a) above.
(c) The term "income-producing capital equipment" shall further include
repair and replacement parts, other than the items in subsection (d)
below, where the property is acquired to become an integral part of
another item itemized in subsections (a) or (b) above.
(d) The tangible personal property defined as income-producing capital
equipment in this Section shall not include:
(1) expendable items. Any item having a net unit cost to the vendee
of less than two hundred fifty dollars ($250.00) shall be deemed
"expendable"; unless such item is treated in the vendee's books
�r and records as a capital asset and the vendee supplies the vendor
L with a certificate of proof of exemption at the time of the
�r transaction, as provided by Regulation.
(2) janitorial equipment and supplies.
(3) hand tools.
(4) office equipment, furniture, and supplies.
(5) tangible personal property used in selling or distributing
activities.
(6) tangible personal property used in research.
(7) motor vehicles required to be licensed by the State of Arizona,,
without regard to the use of such motor vehicles, but not
including buses and similar vehicles used to transport passengers
as part of an urban mass transportation system described in
subsection (a)(8) above.
(8) shops, buildings, docks, depots, or other alterations of real
property.
Sec. SA-1I5. Definitions: computer software; custom computer programming.
(a) "Computer Software" means any computer program, part of such a
program, or any sequence of instructions for automatic data processing
equipment. Computer software which is not "custom computer
programming" is deemed to be tangible personal property for the
purposes of this Chapter, regardless of the method by which title,
possession, or right to use the software is transferred to the user.
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(b) "Custom Computer Programming" means any computer software which
is written or prepared exclusively for a customer and includes those
r services represented by separately stated charges for the modification
of existing prewritten programs when the modifications are written or
prepared exclusively for a customer.
(1) The term does not include a prewritten program which is held or
existing for general or repeated sale, lease, or license, even if the
program was initially developed on a custom basis for in-house, or
for a single customer's, use.
(2) Modification to an existing prewritten program to meet the
customer's needs is custom computer programming only to the
extent of the modification, and only to the extent that the actual
amount charged for the modification is separately stated on
invoices, statements, and other billing documents supplied to the
customer.
Sec. SA-I20. (Reserved)
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Article H - Determination of Gross Income
P
Sec. 8A-200. Determination of gross income: in general.
(a) Gross income includes:
(1) the value proceeding or accruing from the sale of property, the
providing of service, or both.
(2) the total amount of the sale, lease, license for use, or rental price
at the time of such sale, rental, lease, or license.
(3) all receipts, cash, credits, barter, exchange, reduction of or
forgiveness of indebtedness, and property of every kind or nature
derived from a sale, lease, license for use, rental, or other taxable
activity.
(4) all other receipts whether payment is advanced prior to,
contemporaneous with, or deferred in whole or in part subsequent
to the activity or transaction.
(b) Barter, exchange, trade-outs, or similar transactions are includable in
gross income at the fair market value of the service rendered or
property transferred, whichever is higher, as they represent
consideration given for consideration received.
(c) No deduction or exclusion is allowed from gross income on account of
the cost of the property sold, the time value of money, expense of any
kind or nature, losses, materials used, labor or service performed,
interest paid, or credits granted.
Sec. 8A-210. Determination of gross income: transactions between affiliated
f companies or persons.
In transactions between affiliated companies or persons, or in other circumstances
where the relationship between the parties is such that the gross income from the
transaction is not indicative of the market value of the subject matter of the
transaction, the Tax Collector shall determine the "market value" upon which the
City Privilege and Use Taxes shall be levied. "Market value" shall correspond as
nearly as possible to the gross income from similar transactions of like quality or
character by other taxpayers where no common interest exists between the parties,
but otherwise under similar circumstances and conditions.
Sec. 8A-220. Determination of gross income: artificially contrived
transactions.
The Tax Collector may examine any transaction, reported or unreported, if, in his
opinion, there has been or may be an evasion of the taxes imposed by this Chapter
and to estimate the amount subject to tax in cases where such evasion has
occurred. The Tax Collector shall disregard any transaction which has been
undertaken in an artificial manner in order to evade the taxes imposed by this
Chapter.
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Sec. 8A-230. Determination of gross income based upon method of reporting.
The method of reporting chosen by a taxpayer, as provided in Section SA-520,
necessitates the following adjustments to gross income for all purposes under this
Chapter:
(a) Cash basis - When a person elects to report and pay taxes on a cash
basis, gross income for the reporting period shall include:
(1) the total amounts received on "paid in full" transactions, against
which are allowed all applicable deductions and exclusions; and
(2) all amounts received on accounts receivable, conditional sales
contract, or other similar transactions, against which no
deductions and no exclusions from gross income are allowed.
(b) Accrual basis - When a person elects to report and pay taxes on an
accrual basis, gross income shall include all gross income for the
applicable period regardless of whether receipts are for cash, credit,
conditional, or partially deferred transactions, and regardless of
whether or not any security document or instrument is sold, assigned, or
otherwise transferred to another. Persons reporting on the accrual
basis may deduct bad debts, provided that:
(1) the amount deducted for the bad debt must be deducted from
gross income of the month in which the actual charge-off was
made, and only to the extent that such amount was actually
charged-off, and also only to the extent that such amount is or
was included as taxable gross income; and
(2) if any amount is subsequently collected on such charged-off
account, it shall be included in gross income for the month in
} which it was collected, without deduction for expense of
collection.
Sec. 8A-240. Exclusion of cash discounts, returns, refunds, trade-in values,
vendor-issued coupons, and rebates from gross income.
(a) The following items are not included in gross income:
(1) Cash discounts allowed by the vendor for timely payment, but
only discounts allowed against taxable gross income.
(2) The value of property returned by customers to the extent of the
amount actually refunded either in cash or by credit and the
amount refunded was included in taxable gross income.
(3) The trade-in allowance for tangible personal property accepted as
payment, not to exceed the full sales price for any tangible
personal property sold, when the full sales price is included in
taxable gross income.
(4) When coupons issued by a vendor are later accepted by the vendor
as a discount against the transaction, the discount may be
excluded from gross income as a cash discount. Amounts credited
or refunded by a vendor for redemption of coupons issued by any
person other than the vendor may not be excluded from gross
income.
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(5) Rebates issued by the vendor to a customer as a discount against
the transaction may be excluded from gross income as a cash
r discount. Rebates issued by a person other than the vendor may
not be excluded from gross income, even when the vendee assigns
his right to the rebate to the vendor.
(b) If the amount specified in subsection (a) above is credited by a vendor
subsequent to the reporting period in which the original transaction
occurs, such amount may be excluded from the taxable gross income of
that subsequent reporting period, but only to the extent that the
excludable amount was reported as taxable gross income in that prior
reporting period.
Sec. 8A-250. Exclusion of combined taxes from gross income; itemization;
notice; limitations.
(a) When tax is separately charged and/or collected. The total amount of
gross income shall be exclusive of combined taxes only when the person
upon whom the tax is imposed shall establish to the satisfaction of the
Tax Collector that such tax has been added to the total price of the
transaction. The taxpayer must provide to his customer and also keep a
reliable record of the actual tax charged or collected, shown by cash
register tapes, sales tickets, or other accurate record, separating net
transaction price and combined tax. If at any time the Tax Collector
cannot ascertain from the records kept by the taxpayer the total or
amounts billed or collected on account of combined taxes, the claimed
taxes collected may not be excluded from gross income, unless such
records are completed and/or clarified to the satisfaction of the Tax
Collector.
(1) Remittance of all tax charged and/or collected. When an added
charge is made to cover City (or combined) Privilege and Use
Taxes, the person upon whom the tax is imposed shall pay the full
amount of the City taxes due, whether collected by him or not,
and in the event he collects more than the amount due he shall
remit the excess to the Tax Collector. In the event the Tax
Collector cannot ascertain from the records kept by the taxpayer
the total or amounts of taxes collected by him, and the Tax.
Collector is satisfied that the taxpayer has collected taxes in an
amount in excess of the-tax assessed under this Chapter, the Tax
Collector may determine the amount collected and collect the tax
so determined in the manner provided in this Chapter.
(2) itemization. A taxpayer, in order to be entitled to exclude from
his gross income any amounts paid to him by customers for
combined taxes passed on to the customer, must prove that he has
provided his customer with a written record of the transaction
showing at a minimum the price before the tax, the combined
taxes, and the total cost. This shall be addition to the record
required to be kept under subsection (a) above.
(b) When tax has been neither separately charged nor separately collected.
When the person upon whom the tax is imposed shall establish by means
of invoices, sales tickets, or other reliable evidence, that no added
charge was made to cover combined taxes, the taxpayer may exclude
tax collected from such income by dividing such taxable gross income
by 1.00 plus a decimal figure representing the effective combined tax
rate expressed as a fraction of 1.00.
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Sec. 8A-260. Exclusion of motor vehicle fees and taxes from gross income;
limitations.
1 (a) There shall be excluded from gross income of vendors of motor vehicles
those motor vehicle registration fees, license fees and taxes, and lieu
taxes imposed pursuant to Title 28, Arizona Revised Statutes in
connection with the initial purchase of a motor vehicle, but only to the
extent that such taxes or fees or both have been separately itemized
and collected from the purchaser of the motor vehicle by the vendor,
actually remitted to the proper registering, licensing, and taxing
authorities, and the provisions of Article III, regarding recordkeeping,
are met. For the purpose of the exclusion provided by this subsection
only, the terms vendor and vendee shall also apply to a lessor and
lessee respectively, of a motor vehicle if, in addition to all other
requirements of this subsection, the lease agreement specifically
requires the lessee to pay such fees or taxes, and such amounts are
separately itemized in the documentation provided to the lessee.
(b) There shall be excluded from gross income of vendors at retail of heavy
trucks and trailers, the amount attributable to Federal Excise Taxes
imposed by 26 U.S.C. Section 4051, but only to the extent that the
provisions of Article III, relating to recordkeeping, have been met.
Sec. 8A-270. Exclusion of gross income of persons deemed not engaged in
business.
(a) For the purposes of this Section, the following definitions shall apply:
r (1) "Federally Exempt Organization" means an organization which has
received a determination of exemption, or qualifies for such
exemption, under 26 U.S.C. Section 501(c) and rules and
regulations of the Commissioner of Internal Revenue pertaining to
same, but not including a "governmental entity", "non-licensed
business", or "public educational entity".
(2) "Governmental Entity" means the Federal Government, the State
of Arizona, any other state, or any political subdivision,
department, or agency of any of the foregoing; provided further
that persons contracting with such a governmental entity to
operate any part of a governmentally adopted and controlled
program to provide urban mass transportation' shall be deemed a
governmental entity in all activities such person performs when
engaged in said contract.
(3) "Non-Licensed Business" means any person conducting any
business activity for gain or profit, whether or not actually
realized, which person is not required to be licensed for the
conduct or transaction of activities subject to the tax imposed
under this Chapter.
(4) "Proprietary Club" means any club which has qualified or would
otherwise qualify as an exempt club under the provisions of 26
U.S.C. Section 501(c)(7), (8), and (9), notwithstanding the fact
that some or all of the members may own a proprietary interest
in the property and assets of the club.
(5) "Public Educational Entity" means any educational entity
operated pursuant to any provisions of Title 15, Arizona Revised
Statutes.
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(b) Transactions which, if conducted by any other person, would produce
gross income subject to tax under this Chapter shall not be subject to
the imposition of such tax if conducted entirely by a public educational
entity; governmental entity, except "proprietary activities" of
municipalities as provided by Regulation; or non-licensed business.
(c) Transactions which, if conducted by any other person, would produce
gross income subject to the tax under this Chapter shall not be subject
to the imposition of such tax if conducted entirely by a federally
exempt organization or proprietary club with the following exceptions:
(1) Transactions involving proprietary clubs and organizations exempt
under 26 U.S.C. Section 501(c)(7), (8), and (9), where the gross
revenue of the activity received from persons other than members
and bona fide guests of members is in an amount in excess of
fifteen percent (15%) of total gross revenue, as prescribed by
Regulation. In the event this fifteen percent (15%) limit is
exceeded, the entire gross income of such entity shall be subject
to the applicable tax.
(2) Gross income from unrelated business income as that term is
defined in 26 U.S.C. Section 512, including all statutory
definitions and determinations, the rules and regulations of the
Commissioner of Internal Revenue, and his administrative
interpretations and guidelines.
(3) (Reserved).
(d) Except as may be provided elsewhere in this Chapter, transactions
where customers are exempt organizations, proprietary clubs, public
,�• educational entities, governmental entities, or non-licensed businesses
shall be deemed taxable transactions for the purpose, of the imposition
- of taxes under this Chapter, notwithstanding that property so acquired
may in fact be resold or leased by the acquiring person to others. In
the case of sales, rentals, leases, or licenses to proprietary clubs or
exempt organizations, the vendor may be relieved from the
responsibility for reporting and paying tax on such income only by
obtaining from its vendee a verified statement that includes:
(1) a statement that when the property so acquired is resold, rented,
leased, or licensed, that the otherwise exempt vendee chooses, or
is required, to pay City Privilege Tax or an equivalent excise tax-
on--its gross income from such transactions and does in fact file
returns on same; and
(2) the Privilege License number of the otherwise exempt vendee;
and
(3) such other information as the Tax Collector may require.
(e) Franchisees or concessionaires operating businesses for or on behalf of
any exempt organization, governmental entity, public educational
entity, proprietary club, or non-licensed business shall not be considered
to be such an exempt organization, club, entity, or non-licensed
business, but shall be deemed to be a taxpayer subject to the provisions
of this Chapter, except as provided in the definition of governmental
entity, regarding urban mass transit.
(f) (Reserved)
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Sec. 8A-280. (Reserved)
i
Sec. 8A-285. (Reserved)
Sec. 8A-290. (Reserved)
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'r Article IIQ - Licensing and Recordkeeping
s -
Sec. SA-300. Licensing requirements.
(a) The following persons shall make application to the Tax Collector for a
Privilege License, accompanied by a nonrefundable fee of two dollars
($2.00), and no person shall engage or continue in business or engage in
such activities until he shall have such a license:
(1) every person desiring to engage or continue in business activities
within the City upon which a Privilege Tax is imposed by this
Chapter.
(2) (Reserved)
(3) every person required to report and pay a tax upon Rental
Occupancy, as imposed by Section 8A-440.
(b) A person engaged in more than one activity subject to City Privilege
and Use Taxes at any one business location is not required to obtain a
separate license for each activity; provided that, at the time such
person makes application for a license, he shall list on such application
each category of activity in which he is engaged. The licensee shall
inform the Tax Collector of any changes in his business activities within
thirty (30) days.
(c) Limitation. The issuance of a Privilege License by the Tax Collector
shalt in no way be construed as permission to operate a business activity
in violation of any other law or regulation to which such activity may
Ic be subject.
Sec. 8A-305. Special licensing requirements.
(a) Partnerships. Application for a Privilege License for a partnership
engaging or continuing in business in the City shall provide, as a
minimum, the names and addresses of all general partners. Licenses
issued to persons engaged in business as partners, limited or general,
shall be in the name of the partnership.
(b) Corporations. Application for a Privilege License for a corporation
engaging or continuing in business in the City shall provide, as a
minimum, the names and addresses of both the Chief Executive Officer
and Chief Financial Officer of the corporation. Licenses issued to
persons engaged in business as corporations shall be in the name of the
corporation.
(c) Multiple Locations. A person engaged in or conducting one or more
businesses at two (2) or more locations shall procure a license for each
such location. A "location" is a place of a separate business
establishment.
(d) (Reserved)
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Sec. 8A-310. Licensing: duration of license; transferability; display.
T, (a) Except as provided in Section 8A-320, the Privilege License shall be
valid until request for cancellation and/or surrender of the license by
the licensee or expiration through cessation by the licensee of the
business activity for which it was issued.
(b) The Privilege License shall be nontransferable between owners or
locations, and shall be on display to the public in the licensee's place of
business.
(c) Any licensee who permits his license to expire through cancellation as
provided in Section SA-320, by his request for cancellation, by
surrender of the license, or by the cessation of the business activity for
which the license was issued, and who thereafter applies for license,
shall be granted a new license as an original applicant and shall pay the
current license fee. Any licensee who loses or misplaces his Privilege
License which is still in effect shall be charged the current license fee
for each reissuance of a license.
(d) (Reserved)
Sec. 8A-320. Licensing: cancellation; revocation.
(a) Cancellation. The Tax Collector shall be authorized to cancel the City
Privilege License of any licensee as "inactive" if the taxpayer, required
to report monthly to the City, has neither filed any return nor remitted
of to the City any taxes imposed by this Chapter for a period of six (6)
consecutive months; or, if required to report quarterly, has neither filed
any return nor remitted any taxes imposed by this Chapter for two (2)
consecutive quarters; or, if required to report annually, has neither
filed any return nor remitted any taxes imposed by this Chapter when
such annual report and tax are due to be filed with and remitted to the
Tax Collector.
(b) Revocation. If any licensee fails to pay any tax, interest, penalty, fee,
or sum required to be paid to the. City under this Chapter, or if such
licensee fails to comply with any other provisions of this Chapter, the
Tax Collector shall be authorized to revoke the City Privilege License
of said licensee.
W !Notice and Hearing. The Tax Collector shall deliver notice to such
licensee of cancellation or revocation of the Privilege License. If
within twenty (20) days the licensee so notified requests a hearing, he
shall be granted a hearing before the Tax Collector.
(d) After cancellation or revocation of a taxpayer's license, the taxpayer
shall not be relicensed until all reports have been filed; all fees, taxes,
interest, and penalties due have been paid; and he is in compliance with
the provisions of this Chapter.
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Sec. 8A-330. Operating without a license.
r It shall be unlawful for any person who is required by this Chapter to obtain a
Privilege License to engage in or continue in business within the City without a
license. The Tax Collector shall assess any delinquencies in tax, interest, and
penalties which may apply against such person upon any transactions subject to the
taxes imposed by this Chapter.
Sec. 8A-350. Recordkeeping requirements.
(a) It shall be the duty of every person subject to the tax imposed by this
Chapter to keep and preserve suitable records and such other books and
accounts as may be necessary to determine the amount of tax for which
he is liable under this Chapter. The books and records must contain, at
a minimum, such detail and summary information as may be required
by Regulation. It shall be the duty of every person to keep and preserve
such books and records for a period equal to the applicable limitation
period for assessment of tax, and all such books and records shall be
open for inspection by the Tax Collector during any business day.
(b) The Tax Collector may direct, by letter, a specific taxpayer to keep
specific other books, records, and documents. Such letter directive
shall apply:
(1) only for future reporting periods, and
(2) only by express determination of the Tax Collector that such
specific recordkeeping is necessary due to the inability of the
City to conduct an adequate examination of the past activities of
the taxpayer, which inability resulted from inaccurate or
inadequate books, records, or documentation maintained by the
taxpayer.
Sec. 8A-360. Recordkeeping: claim of exclusion, exemption, deduction, or
credit; documentation; liability.
(a) All deductions, exclusions, exemptions and credits provided in this
Chapter are conditional upon adequate proof and documentation of such
as may be required under A.R.S. Section 42-1328 or by.this Chapter or,
Regulation.
(b) Any person who claims and receives an exemption, deduction, exclusion,
or credit to which he is not entitled under this Chapter, shall be subject
to, liable for, and pay the tax on the transaction as if the vendor
subject to the tax had passed the burden of the payment of the tax to
the person wrongfully claiming the exemption. A person who
wrongfully claimed such exemption shall be treated as if he is
delinquent in the payment of the tax and shall be subject to interest and
penalties upon such delinquency. However, if the tax is collected from
the ,vendor on such transaction it shall not again be collected from the
person claiming the exemption, or if collected from the person claiming
the exemption it shall not also be collected from the vendor.
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Sec. 8A-370. Inadequate or unsuitable records.
r In the event the records provided by the taxpayer are considered by the Tax
Collector to be inadequate or unsuitable to determine the amount of the tax for
which such taxpayer is liable under the provisions of this Chapter, it is the
responsibility of the taxpayer either:
(1) to provide such other records required by this Chapter or
Regulation; or
(2) to correct or to reconstruct his records, to the satisfaction of the
Tax Collector.
1
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r Article IV - Privilege Taxes
Sec. 8A-400. Imposition of Privilege Taxes; presumption.
(a) There are hereby levied and imposed, subject to all other provisions of
this Chapter, the following Privilege Taxes for the purpose of raising
revenue to be used in defraying the necessary expenses of the City,
such taxes to be collected by the Tax Collector:
(1) a Privilege Tax upon persons on account of their business
activities, to the extent provided elsewhere in this Article, to be
measured by the gross income of persons, whether derived from
residents of the City or not, or whether derived from within the
City or from without.
(2) a Privilege Tax upon certain persons for the privilege of
occupancy of real property, in accordance with the provisions of
Section SA-440.
(b) Taxes imposed by this Chapter are in addition to others. Except as
specifically designated elsewhere in this Chapter, each of the taxes
imposed by this Chapter shall be in addition to all other licenses, fees,
and taxes levied by law, including other taxes imposed by this Chapter.
(c) Presumption. For the purpose of proper administration of this Chapter
and to prevent evasion of the taxes imposed by this Chapter, it shall be
presumed that all gross income is subject to the tax until the contrary
is established by the taxpayer.
(d) Limitation of exemptions, deductions, and credits allowed against the
measure of taxes imposed by this Chapter. All exemptions, deductions,
and credits set forth in this Chapter shall be limited to the specific
activity or transaction described and not extended to include any other
activity or transaction subject to the tax.
Sec. 8A-405. Advertising.
(a) The tax''rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business of "local advertising" by billboards, direct
mail, radio, television, or by any other means. However, commission
and fees retained by an advertising agency shall not be includable in
gross income from "local advertising". All delivery or disseminating of
information directly to the public or any portion thereof for a
consideration shall be considered "Local Advertising", except the
following:
(1) the advertising of a product or service which is sold or provided
both within and without the State by more than one "commonly
designated business entity" within the State, and in which the
advertisement names either no "commonly designated business
entity" within the State or more than one "commonly designated
business entity". "Commonly Designated Business Entity" means
any person selling or providing any product or service to its
customers under a common business name or style, even though
there may be more than one legal entity conducting business
functions using the same or substantially the same business name
or style by virtue of a franchise, license, or similar agreement.
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(2) the advertising of a facility or of a service or activity in which
1 neither the facility nor a business site carrying on such service or
activity is Iocated within the State.
(3) the advertising of a product which may only be purchased from an
out-of-State supplier.
(4) political advertising for United States Presidential and Vice
Presidential candidates only.
(5) advertising by means of product purchase coupons redeemable at
any retail establishment carrying such product but not product
coupons redeemable only at a single commonly designated
business entity.
(6) advertising transportation services where a substantial portion of
the transportation activity of the business entity advertised
involves interstate or foreign carriage.
(b) (Reserved)
Sec. SA-4I0. Amusements, exhibitions, and similar activities.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the following businesses:
(1) operating or conducting theaters, movies, operas, shows of any
type or nature, exhibitions, concerts, carnivals, circuses,
amusement parks, menageries, fairs, races, contests, games,
y0► billiard or pool parlors, bowling alleys, skating rinks, tennis
j courts, golf courses, video games, pinball machines, public dances,
dancehalls, sports events, jukeboxes, batting and driving ranges,
animal rides, or any other business charging admission for
exhibition, amusement, entertainment, or instruction.
(2) health spas, fitness centers, or other persons who charge for the
use of premises for sports, athletic, or other health-related
activities, whether on a per-event use, or for long-term usage,
such as membership fees.
(b) (Reserved)
Sec. 8A-415. Construction contracting; prime contractors.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business upon every construction contractor
engaging or continuing in the business activity of construction
contracting within the City.
(1) However, gross income from construction contracting shall not
include charges related to groundwater measuring devices
required by A.R.S. Section 45-604.
(2) (Reserved)
(b) Deductions.
1 Gross income derived from acting as a "subcontractor" shall be
exempt from the tax imposed by this Section.
(2) All construction contracting gross income subject to the tax and
not deductible herein shall be allowed a deduction of thirty-five
percent (35%).
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(c) "Subcontractor" means a construction contractor performing work for
either:
1 (1) a construction contractor who has provided the subcontractor
with a written declaration that he is liable for the tax for the
project and has provided the subcontractor both his Arizona
Transaction Privilege License number and his City Privilege
License number.
(2) an owner-builder who has provided the subcontractor with a
written declaration that:
(A) the owner-builder is improving the property for sale; and
(B) the owner-builder is liable for the tax for such construction
contracting activity; and
(C) the owner-builder has provided the contractor both his
Arizona Transaction Privilege License number and his City
Privilege License number.
Sec. 8A-416. Construction contracting: speculative builders.
(a) The tax shall be equal to two percent (2%) of the gross income from the
business activity upon every person engaging or continuing in business
as a speculative builder within the City.
(1) The gross income of a speculative builder considered taxable shall
include the total selling price from the sale of improved real
property at the time of closing of escrow or transfer of title.
(2) "Im-proved Real Property" means any real property:
(A) upon which a structure has been constructed; or
(B) where improvements have been made to land containing no
structure (such as paving or landscaping); or
(C) which has been reconstructed as provided by Regulation; or
i + (D) where water, power, and streets have been constructed to
the property line.
(3) "Sale of Improved Real Property" includes any form of
transaction, whether characterized as a lease or otherwise, which
in substance is a transfer of title of, or equitable ownership in,
improved real property and includes any lease of the property for
a term of thirty (30) years or more (with all options for renewal
being included as a part of the term). In the case of multiple unit.
projects, "sale" refers to the sale of the entire project or to the
safe of any individual parcel or unit.
(b) Exclusions.
l In cases involving reconstruction contracting, the speculative
builder may exclude from gross income the prior value allowed for
reconstruction contracting in determining his taxable gross
income, as provided by Regulation.
(2) Neither the cost nor the fair market value of the land which
constitutes part of the improved real property sold may be
excluded or deducted from gross income subject to the tax
imposed by this Section.
(3) (Reserved)
(c) Tax liability for speculative builders occurs at close of escrow or
transfer of title, whichever occurs earlier, and is subject to the
provisions of Section 8A-418, relating to deductions and tax credits.
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Sec. 8A-417. Construction contracting: owner-builders who are not speculative
builders.
(a) At the expiration of twenty-four (24) months after improvement to the
property is substantially complete, the tax liability for an owner-builder
who is not a speculative builder shall be at an amount equal to two
percent (2%) of:
(1) the gross income from the activity of construction contracting
upon the real property in question which was realized by those
construction contractors to whom the owner-builder provided
written declaration that they were not responsible for the taxes
as prescribed in Subsection 8A-415(c)(2); and
(2) the purchase of tangible personal property for incorporation into
any improvement to real property, computed on the sales price.
(b) The tax liability of this Section is subject to the provisions of Section
8A-418, relating to deductions and tax credits.
(c) The limitation period for the assessment of taxes imposed by this
Section is measured based upon when such liability is reportable, that
is, in the reporting period that encompasses the twenty-fifth (25th)
month after said unit or project was substantially complete. Interest
and penalties, as provided in Section 8A-540, will be based on
reportable date.
(d) (Reserved)
Sec. 8A-418. Construction contracting: deductions and tax credits available
i to speculative builders and owner-builders.
AL The following deductions and tax credits are available to amounts subject to the
taxes imposed by Sections 8A-416 and 8A-417:
(a) All amounts subject to the tax shall be allowed a deduction in the
amount of thirty-five percent (35%).
(b) The following tax credits are available to owner-builders and specula-
tive builders, not to exceed the tax liability against which such credits
apply, provided such credits are documented to the satisfaction of the
Tax Collector:
(1) A tax credit equal to the amount of City Privilege or Use Tax, or
the equivalent excise tax, paid directly to a taxing jurisdiction or
as a separately itemized charge paid directly to the vendor in
respect of the tangible personal property incorporated into the
said structure or improvement to real property undertaken by the
speculative builder or owner-builder.
(2) A tax credit equal to the amount of Privilege Taxes paid to this
City, or charged separately to the customer, by the construction
contractor, speculative builder, or owner-builder on the gross
income derived by said person from the construction of any
improvement to the real property.
(3) . No credits provided herein may be claimed until such time that
the gross income against which said credits apply is reported.
I
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1 Sec. 8A-420. Feed at wholesale.
(a) The tax rate shall be at an amount equal to two percent (21yo) of the
gross income from the business activity upon every person engaging or
continuing in the business of the sale of feed, salt, vitamins, and other
additives to feed, to persons engaged in the raising or feeding of
livestock or poultry purchased or raised for slaughter, with no deduction
for the income derived from the "resale" of such feed.
(b) The tax imposed by this Section shall not apply to:
(1) out-of-City sales.
(2) out-of-State sales.
Sec. 8A-425. Job printing.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from 'the business activity upon every person engaging or
continuing in the business of job printing, which includes engraving of
printing plates, embossing, copying, micrographics, and photo
reproduction.
(b) The tax imposed by this Section shall not apply to:
(1) job printing purchased for the purpose of resale by the purchaser
in the form supplied by the job printer.
(2) out-of-City sales.
(3) out-of-State sales.
(4) (Reserved)
Sec. 8A-430. Mining, timbering, and other extraction.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the following businesses:
(1) mining, smelting, or producing for sale, profit, or commercial use
any copper, gold, silver, or other mineral product, compound, or
combination of mineral products; but not including the extraction,
removal, or production of sand, gravel, or rock from the ground
for sale, profit, or commercial use.
(2) felling, producing, or preparing timber or any product of the
forest for sale, profit, or commercial use.
(3) extracting, refining, or producing any oil or natural gas for sale,
profit, or commercial use.
(b) The rate specified in subsection (a) above shall be applied to the value
of the entire product mined, smelted, extracted, refined, produced, or
prepared for sale, profit, or commercial use, when such activity occurs
within the City, regardless of the place of sale of the product or the
fact that delivery may be made to a point without the City or without
the State.
(c) if any person engaging in any business classified in this Section ships or
transports products, or any part thereof, out of the State without
making sale of such products, or ships his products ouiside of the State
in an unfinished condition, the value of the products or articles in the
condition or form in which they existed when transported out-of-State
and before they enter interstate commerce shall be the basis for
assessment of the tax imposed by this Section.
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r
Sec. SA-435. Publishing and periodicals distribution.
i
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business activity of.
(1) publication of newspapers, magazines, or other periodicals when
published within the City, measured by the gross income derived
from notices, subscriptions, and local advertising as defined in
Section 8A-405. In cases where the location of publication is
both within and without this State, gross income subject to the
tax shall refer only to gross income derived from residents of this
State or generated by permanent business locations within this
State.
(2) distribution or delivery within the City of newspapers, magazines,
or other periodicals not published within the City, measured by
the gross income derived from subscriptions.
(b) "Location of Publication" is determined by:
(1) location of the editorial offices of the publisher, when the
physical printing is not performed by the publisher; or
(2) location of either the editorial offices or the printing facilities, if
the publisher performs his own physical printing.
(c) "Subscription income" shall include all circulation revenue of the
r„ publisher except amounts retained by or credited to carriers or other
vendors as compensation for delivery within the State by such carriers
or vendors, and further except sales of published items, directly or
through distributors, for the purpose of resale, to retailers subject to
the Privilege Tax on such resale.
(d) "Circulation," for the purpose of measurement of gross income subject
to the tax, shall be considered to occur at the place of delivery of the
published items to the subscriber or intended reader irrespective of the
location of the physical facilities or personnel of the publisher.
However, delivery by the United .States mails shall be considered to
have occurred at the location of publication.
(e) Allocation of taxes between cities and towns. In cases where
publication or distribution 'occurs in more than one city or town, the
measurement of gross income subject to tax by the City shall include:
(1) that portion of the gross income from publication which reflects
the ratio of circulation within this City to circulation in all
incorporated cities and towns in this State having substantially
similar provisions; plus
(2) only when publication occurs within the City, that portion of the
remaining gross income from publication which reflects the ratio
of circulation within this City to the total circulation of all
incorporated cities or towns in this State within which cities the
taxpayer maintains a location of publication.
f
1
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Sec. 8A-440. Rental occupancy.
(a) For the purposes of this Section only, the following definitions shall
apply:
(1) "Landlord" means any lessor of real property under a pre-existing
lease.
(2) "Pre-existing Lease" means any written lease, license for use, or
rental agreement entered into prior to December 1, 1967; except
for the following:
(A) any bilateral amendment to such written agreement which
was entered into subsequent to December 1, 1967, wherein
the length of the term or the size of the premises affected
is changed or both.
(13) any such agreement for lodging or lodging space.
(3) "Rent" means all consideration paid by the tenant to his landlord
or to another in payment of or diminution of his own or his
landlord's obligation in connection with the real property occupied
by the tenant, whether or not such occupancy is designated as a
rent, lease or license for use of real property.
(4) "Tenant" means any lessee of real property under a pre-existing
lease.
(b) The tax rate shall be at an amount of percent ( %) of the gross
rent paid by a tenant, to the extent of his occupancy of real property in
this City under a pre-existing lease, upon such tenant, for the privilege
of such occupancy, subject to the provisions of this Section,
(c) Exclusions. The tax imposed by this Section shalt not apply to:
(1) occupancy by a tenant which the Constitution or laws of the
United States or of the State of Arizona prohibit the City from
taxing.
(2) occupancy by a tenant of a landlord which the Constitution or
laws of the United States or of the State of Arizona prohibit the
City from taxing.
(3) occupancy of lodging or lodging space.
(4) occupancy of real property under other than a pre-existing lease.
(d) Duty of landlords. Every landlord of a tenant subject to the tax:
(1) shall collect the tax imposed by this Section from the tenant
liable for the tax at the same time as and together with the
tenant's periodic or other payment of rent. The tax required to
be collected shall constitute a debt owed by the landlord to the
City.
(2) shall be considered a taxpayer subject to all licensing,
recordkeeping, and reporting requirements of this Chapter.
(e) Duty of tenants. Every tenant liable for the tax:
(1) shall, in any instance in which the tax has not been collected by
his landlord, remit such tax to the Tax Collector, and in such
case, be subject to all licensing and reporting requirements of this
Chapter.
(2) shall maintain, and provide upon request, books and records
sufficient for the .Tax Collector to determine the tax liability of
such tenant.
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(f) Interest and civil penalties shall be the liability of the landlord
collecting and remitting the tax; provided, however, that if the landlord
can present clear and convincing evidence that the delinquency was
caused by the tenant, then said interest and penalties shall be the
liability of the tenant.
(g) Extension of rights of appeal to include tenants and landlords.
(1) Any landlord or tenant may avail himself of the provisions of
Sections 8A-570 through 8A-575, relating to appeals, and, except
as modified hereunder, all provisions of said Sections shall apply.
(2) For the purposes of preserving appeal rights, an assessment
against a landlord may be protested and appealed by any tenant
paying or liable to pay the tax for the occupancy included in such
assessment.
(3) Payment of the tax herein imposed to a landlord by a tenant shall
be deemed payment of the tax for the tenant for the purposes of
allowing a protest to be initiated under Sections 8A-570 through
8A-575.
(4) The filing of a protest petition by a tenant shall not relieve the
landlord of his obligation to report and remit the protested tax; or
any subsequent periodic payments of tax governed by the initial
protest.
(h) Refunds. Any refunds of taxes authorized by this Chapter shall be
made to the tenant. Any refunds of interest and civil penalties
authorized by this Chapter shall be made to the person liable for such,
as provided in subsection (f) above.
i
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Sec. 8A-445. Rental, leasing, and licensing for use of real property.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business of leasing, licensing for use, or renting real
property located within the City for a consideration, to the tenant in
actual possession, including any improvements, rights, or interest in
such property; provided further that:
(1) Payments made by the lessee to, or on behalf of, the lessor for
property taxes, repairs, or improvements are considered to be
part of the taxable gross income.
(2) Charges for such items as telecommunications, utilities, pet fees,
or maintenance are considered to be part of the taxable gross
income.
(3) However, if the lessor engages in telecommunication activity, as
evidenced by installing individual metering equipment and by
billing each tenant based upon actual usage, such activity is
taxable under Section SA-470.
(b) If individual utility meters have been installed for each tenant and the
lessor separately charges each single tenant for the exact billing from
the utility company, such charges are exempt.
(c) Charges by primary health care facilities to patients of such facilities
for use of rooms or other real property during the course of their
treatment by such facilities are exempt.
(d) Charges for joint pole usage by a person engaged in the business of
providing or furnishing utility or telecommunication services to another
person engaged in the business of providing or furnishing utility or
telecommunication services are exempt from the tax imposed by this
Section.
(e) (Reserved)
(f) (Reserved)
(g) (Reserved)
(h) (Reserved)
(i) (Reserved)
Sec. SA-447. (Reserved)
Sec. 8A-450. Rental, leasing, and licensing for use of tangible personal
property.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
' continuing in the business of leasing, licensing for use, or renting
tangible personal property for a consideration, including that which is
semi-permanently or permanently installed within the City as provided
by Regulation.
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T
(b) Special provisions relating to long-term motor vehicle leases. A lease
transaction involving a motor vehicle for a minimum period of twenty-
four (24) months shall be considered to have occurred at the location of
the motor vehicle dealership, rather than the location of the place of
business of the lessor, even if the lessor's interest in the lease and its
proceeds are sold, transferred, or otherwise assigned to a lease
financing institution; provided further that the city or town where such
motor vehicle dealership is located levies a Privilege Tax or an
equivalent excise tax upon the transaction.
(c) Gross income derived from the following transactions shall be exempt
from Privilege Taxes imposed by this Section:
(1) rental, leasing, or licensing for use of tangible personal property
to persons engaged or continuing in the business of leasing,
licensing for use, or rental of such property.
(2) rental, leasing, or licensing for use of tangible personal property
that is semi-permanently or permanently installed within another
city or town that levies an equivalent excise tax on the
transaction.
(3) rental, leasing, or licensing for use of film, tape, or slides to a
theater or other person taxed under .Section 8A-410, or to a radio
station, television station, or subscription television system.
(4) rental, leasing, or licensing for use of the following:
(A) prosthetics.
(B) income-producing capital equipment.
(C) mining and metallurgical supplies.
(5) rental, leasing, or licensing for use of tangible personal property
to any nonprofit primary health care facility, except when the
property so rented, leased, or licensed is for use in activities
resulting in gross income from unrelated business income as that
tern is defined in 26 U.S.C. Section 512.
(6) separately billed charges for delivery, installation, repair, and/or
maintenance as provided by Regulation.
(7) charges for joint pole usage by a person engaged in the business of
providing or furnishing utility or telecommunication services to
another person engaged .in the business of providing or furnishing
utility or telecommunication services.
(8) (Reserved)
(9) (Reserved)
Sec. 8A-455. Restaurants and Bars.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business of preparing or serving food or beverage in a
bar, cocktail lounge, restaurant, or similar establishment where articles
of food or drink are prepared or served for consumption on or off the
premises, including also the activity of catering. Cover charges and
minimum charges must be included in the gross income of this business
activity.
(b) Caterers and other taxpayers subject to the tax who deliver food and/or
serve such food off premises, shall also be allowed to exclude
separately charged delivery, set-up, and clean-up charges, provided that
the charges are also maintained separately in the books and records.
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Sec. 8A-460. Retail sales: measure of tax; burden of proof; exclusions.
(a) The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business of selling tangible personal property at retail.
(b) The burden of proving that a sale of tangible personal property is not a
taxable retail sale shall be upon the person who made the sale.
' (c) Exclusions. For the purposes of this Chapter, sales of tangible personal
property shall not include:
(1) sales of stocks, bonds, options, or other similar materials.
(2) sales of lottery tickets or shares pursuant to Article I, Chapter 5,
Title 5, Arizona Revised Statutes.
(3) sales of platinum, bullion, or monetized bullion, except minted or
manufactured coins transferred or acquired primarily for their
numismatic value as prescribed by Regulation.
(4) gross income derived from the transfer of tangible personal
property which is specifically included as the gross income of a
business activity upon which another Section of this Article
imposes a tax, shall be considered gross income of that business
activity, and are not includable as gross income subject to the tax
imposed by this Section.
(5) sales by professional or personal service occupations where such
sales are inconsequential elements of the service provided.
(d) (Reserved)
(e) Except 'as provided in Section SA-567, when this City and another
Arizona city or town with an equivalent excise tax could claim nexus
for taxing a retail sale, the city or town where the permanent business
location of the seller at which the order was received shall be deemed
to have precedence, and for the purposes of this Chapter such city or
town has sole and exclusive right to such tax.
(f) The appropriate tax liability for any retail sale where the order is
received 'at a permanent business location of the seller located in this
City or in an Arizona city or town that levies an equivalent excise tax
shall be at the tax rate of the city or town of such seller's location.
Sec. 8A-465. Retail sales: exemptions.
Income derived from the following sources is exempt from the tax imposed by
Section 8A-460:
(a) ' sales of tangible personal property to a person regularly engaged in the
business of selling such property.
M out-of-City sales and out-of-State sales.
i (c) charges for delivery, installation, or other direct customer services as
prescribed by Regulation.
(d) charges for repair services as prescribed by Regulation, when
separately charged and separately maintained in the books and records
of the taxpayer.
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1
(e) (Reserved)
(f) sales of prosthetics.
(g) sales of income-producing capital equipment.
(h) sales of rental equipment and rental supplies.
M sales of mining and metallurgical supplies.
(j) sales of motor vehicle fuel and use fuel which are subject to a tax
imposed under the provisions of Aricle I or II, Chapter 9, Title 28,
Arizona Revised Statutes; or sales of use fuel to a holder of a valid
single trip use fuel tax permit issued under A.R.S. Section 28-1559.
W sales of tangible personal property to a construction contractor who
holds a valid Privilege Tax License for engaging or continuing in the
business of construction contracting where the tangible personal
property sold is incorporated into any structure or improvement to real
property as part of construction contracting activity.
(1) (Reserved)
(m) sales of tangible personal property which directly enters into and
becomes an ingredient or component part of a product sold in the
regular course of the business of job printing, manufacturing, or
publication of newspapers, magazines, or other periodicals. Tangible
personal property which is consumed or used up in a manufacturing, job
printing, publishing, or production process is not an ingredient nor
component part of a product.
(n) sales made directly to the Federal government to the extent of:
(1) one hundred percent (100%) of the gross income derived from
retail sales made by a manufacturer, modifier, assembler, or
repairer.
(2) ' fifty percent (50%) of the gross income derived from retail sales
made by any other person.
(o) sales to hotels, bars, restaurants, dining cars, lunchrooms, boarding
houses, or similar establishments of articles consumed as food, drink, or
condiment, whether simple, mixed, or compounded, where such articles
are customarily prepared or served to patrons for consumption on or off
the premises, where the purchaser is properly licensed and paying a tax
under Section 8A-445 or the equivalent excise tax upon such income.
(p) sales of tangible personal property to any nonprofit primary health care
facility, except when the property sold is for use in activities resulting
in gross income from unrelated business income as that term is defined
in 26 U.S.C. Section 512.
% (q) (Reserved)
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W (Reserved)
(1) (Reserved)
(2) (Reserved)
(3) (Reserved)
(4) (Reserved)
(s) sales of groundwater measuring devices required by A.R.S. Section
45-604.
(t) (Reserved)
(u) (Reserved)
(v) (Reserved)
(w) (Reserved)
W (Reserved)
(y) (Reserved)
(z) (Reserved)
Sec. 8A-470. Telecommunication services.
41'i (a) The tax rate shall be at an amount equal to zero percent (0%) of the
gross income from the business activity upon every person engaging or
continuing in the business of providing telecommunication services to
consumers within this City.
(1) Telecommunication services shall include:
(A) two-way voice, sound, and/or video communication over a
communications channel.
(B) one-way voice, sound, and/or video transmission or relay
over a communications channel.
(C) facsimile transmissions..
(D), providing relay or r-epeater service.
(E) providing computer interface services over a
communications,channel.
(F) time-sharing activities with a computer accomplished
through the use of a communications channel.
(2) Gross income from the business activity of providing
telecommunication services to consumers within this City shall
include:
(A) all fees for connection to a telecommunication system.
(B) toll charges, charges for transmissions, and charges for
other telecommunications services; provided that such
charges relate to transmissions originating in the City and
terminating in this State.
(C) fees charged for access to or subscription to or membership
in a telecommunication system or network.
V charges for monitoring services relating to a security or
burglar alarm system located within the City where such
system transmits or receives signals or data over a
communications channel.
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(b) Resale telecommunication services. Gross income from sales of
telecommunication services to another provider of telecommunication
services for the purpose of providing the purchaser's customers with
such service shall be exempt from the tax imposed by this Section;
provided, however, that such purchaser is properly licensed by the City
to engage in such business.
(c) Interstate transmissions. Charges by a provider of telecommunication
services for transmissions originating in the City and terminating
outside the State are exempt from the tax imposed by this Section.
(d) Tax credit offset for franchise fees. There shall be allowed as an
offset, up to the amount of tax due, any amounts paid to the City for
license fees or franchise fees, but such offset shall not be allowed
against taxes imposed by any other Section of this Chapter. Such
offset shall not be deemed in conflict with or violation of subsection
8A-400(b).
(e) However, gross income from the providing of telecommunication
services by a cable television system, as such system is defined in
A.R.S. Section 9-505, shall be exempt from . the tax imposed by this
Section.
Sec. 8A-475. Transporting for hire.
"~ The tax rate shall be at an amount equal to two percent (2%) of the gross income
1 from the business activity upon every person engaging or continuing in the business
of providing the .following forms of transportation for hire from this City to
another point within the State:
(a) transporting of persons or property by railroad.
(b) transporting of oil or natural or artificial gas through pipe or conduit.
(c) transporting of property by aircraft.
(d) transporting of persons or property by motor vehicle, including towing
and the operation of private car lines, as such are defined in Article III,
Chapter 4, Title 42, Arizona Revised Statutes; provided, however, that
the tax imposed by this subsection shall not apply to:
(1) gross income subject to the tax imposed by Article Vt, Chapter 9,
Title 28, Arizona Revised Statutes.
(2) gross income derived from the operation of a governmentally
adopted and controlled program to provide urban mass
transportation.
(3) (Reserved)
(4) (Reserved)
Sec. SA-490. Utility services.
(a) The tax rate shall be at an amount equal to three percent (3%) of the
j gross income from the business activity upon every person engaging or
continuing in the business of producing, providing, or furnishing utility
services, including electricity, electric lights, current, power, gas
(natural or artificial), or water to;
(1) consumers or ratepayers who reside within the City.
(2) (Reserved)
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(b) Exclusion of certain sales of natural gas to a public utility.
' Notwithstanding the provisions of subsection a above, the gross
income derived from the sale of natural gas to a public utility for the
purpose of generation of power to be transferred by the utility to its
ratepayers shall be considered a retail sale of tangible personal
property subject to Sections 8A-460 and 8A-465, and not considered
gross income taxable under this Section.
(c) Resale utility services. Sales of utility services to another provider of
the same utility services for the purpose of providing such utility
services either to another properly licensed utility provider or directly
to such purchaser's customers or ratepayers shall be exempt and
deductible from the gross income subject to the tax imposed by this
Section, provided that the purchaser is properly licensed by all
applicable taxing jurisdictions to engage or continue in the business of
providing utility services, and further provided that the seller maintains
proper documentation, in a manner similar to that for sales for resale,
of such transactions.
(d) Tax credit offset for franchise fees. There shall be allowed as an offset
any franchise fees paid to the City pursuant to the terms of a franchise
agreement, when such franchise fees are based on gross income realized
from utility services provided to a specified class of customers within
the City. However, such offset shall not be allowed against taxes
4e imposed by any other Section of this Chapter. Such offsets shall not be
deemed in conflict with or violation of subsection 8A-400(b).
I
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Article V - Administration
Sec. SA-500. Administration of this Chapter; rule making.
(a) The administration of this Chapter is vested in and exercised by the
City of Apache Junction, and except as otherwise provided, and all
payments shall be made to the City of Apache Junction. The City may,
pursuant to an intergovernmental agreement, contract with the State of
Arizona Department of Revenue for the administration of the tax. In
such cases, "Tax Collector" shall also mean the Arizona Department of
Revenue, when acting as agent in administering this tax.
(b) The Tax Collector shall prescribe the forms and procedures necessary
for the administration of the taxes imposed by this Chapter.
(c) Except where such Regulations would conflict with administrative
regulations adopted by the City Council or with provisions of this
Chapter, all regulations on the Transaction Privilege Tax adopted by
the Arizona Department of Revenue under the authority of A.R.S.
Section 42-105 shall be considered Regulations of this Chapter and
enforceable as such.
Sec. 8A-510. Divulging of information prohibited; exceptions allowing
disclosure.
1 (a) Except as specifically provided, it shall be unlawful for any official or
employee of the City to make known information obtained pursuant to
this Chapter concerning.the business financial affairs or operations of
any person.
(b) The City Council may authorize an examination of any return or audit
of a specific taxpayer made pursuant to this Chapter by authorized
agents of the Federal Government, the State of Arizona, or any
political subdivisions.
(c) The Tax*Collector may provide to an Arizona county, city, or town any
information concerning any taxes imposed in this Chapter relative to
the taxing ordinances of that county, city, or town.
(d) Successors, receivers, trustees, personal representatives, executors,
guardians, administrators, and assignees, if directly interested, may be
given information by the Tax Collector as to the items included in the
measure and amounts of any unpaid tax, interest, and penalties required
to be paid.
(e) Upon a written direction by the City Attorney or other legal advisor to
the City designated by the City Council, officials or employees of the
City may divulge the amount and source of income, profits, leases, or
expenditures disclosed in any return or report, and the amount of such
delinquent and unpaid tax, penalty, or interest, to a private collection
agency having a written collection agreement with the City.
(f) The Tax Collector may provide information to appropriate
representatives of any Arizona city or town to comply with the
provisions of A.R.S. Section 42-1452 relating to the assessment and
collection of intermunicipal taxes.
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(g) The Tax Collector may provide information to authorized agents of any i' ?
other Arizona governmental agency involving the allocation of taxes
imposed by Section 8A-435 upon publishing and distribution of
periodicals.
(h) The Tax Collector may provide information regarding the enforcement
and collection of taxes imposed by this Chapter to any governmental
agency with which the City has an agreement.
Sec. SA-520. Reporting and payment of tax.
(a) The taxpayer shall be required to use the report form authorized by the
Tax Collector and shall mail or deliver the same, together with
remittance for the amount of tax due, payable to the City of Apache
Junction, to the Tax Collector or any City representative or agent
authorized to receive such payment. The tax return shall be signed by
the taxpayer or his authorized agent, and such signature shall be
evidence that the person signing the return verifies the accuracy of the
information supplied in the return.
(b) Payment. If payment is made in any form other than United States
legal tender, the tax obligation shall not be satisfied until the payment
has been honored in funds.
r (c) Requirement of Security. If a taxpayer has remitted payment in the
form of a check or other form of draw upon a bank or third party and
such remittance has not been honored in funds, the Tax Collector may
demand security for future payments.
(d) Method of Reporting. Each taxpayer shall elect to report on either a
cash receipts basis or an accrual basis and shall indicate the choice on
the Privilege License application. A taxpayer shall not change his
reporting method without receiving prior written approval by the Tax
Collector.
(1) Taxpayers must report all gross income subject to the tax using
the, same basis of reporting.
(2) Taxes imposed upon construction contracting shall be reported as
follows;
(A) Construction contractors shall report on either a progressive
billing "accrual" basis or cash receipts basis.
(B) Speculative builders shall report the gross income derived
from sale of improved real property at close of escrow or at
transfer of title or possession, whichever occurs earlier.
(C) Owner-builders who are not speculative builders shall report
taxable amounts as provided in Section 8A-417.
Sec. 8A-530. When tax due; when delinquent; verification of return;
extensions.
(a) Except as otherwise specified in this Section, the taxes levied under
this Chapter shall be due, payable, and delinquent on the dates specified
for the State Transaction Privilege Taxes in A.R.S. Section 42-1322.
The taxpayer shall report on the taxes imposed by this Chapter at such
frequency to be identical to the taxpayer's reporting frequency for the
reporting of State Transaction Privilege Taxes.
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(b) (Reserved)
(c) (Reserved)
(d) (Reserved)
(e) The Tax Collector may for good cause extend the date for making any
return required under the provisions of this Section. as prescribed by
A.R.S. Section 42-1I6.
Sec. 8A-540. Interest and civil penalties.
Any taxpayer who shall have failed to timely pay any taxes imposed by this
Chapter, or file a report for the same in a timely manner, or fail or refuse to
allow examination of records by the Tax Collector, shall be subject to any
interest or civil penalties on such tax in like manner as such interest and
penalties are provided in A.R.S. Sections 42-134 and 42-136 for the State
Transaction Privilege Tax.
(a) (Reserved)
(b) (Reserved)
(c) (Reserved)
(d) (Reserved)
1
(e) (Reserved)
(f) (Reserved)
Sec. 8A-545. Deficiencies; when inaccurate return is filed; when no return is
filed; estimates.
(a) If a taxpayer has failed to file a return or if the Tax Collector is not
satisfied with the return or payment of tax required, the Tax Collector
may redetermine the tax due, plus penalties and interest, and notify the
taxpayer, as provided and prescribed by A.R.S. Sections 42-117 and 42-
118.
(1) (Reserved)
(2) (Reserved)
(b) Estimates by the Tax Collector. Any estimate made by the Tax
Collector is to be made on a reasonable basis. The existence of another
reasonable basis of estimation does not, in any way, invalidate the Tax
Collector's estimate. It is the responsibility of the taxpayer to prove
that the Tax Collector's estimate is not reasonable and correct, by
providing sufficient documentation of the type and form required by
this Chapter or satisfactory to the Tax Collector.
Sec. $A-550. Limitation periods.
(a) Except as provided elsewhere in this Chapter, deficiency assessments
for the taxes imposed by this Chapter must be issued within the
limitation periods prescribed in A.R.S. Section 42-113, and must meet
the provisions of A.R.S. Section 42-117.
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(b) (Reserved)
(c) In cases of failure to file a return or a false or fraudulent return, the
limitation period shall be as prescribed in A.R.S. Section 42-1 18.
(d) Special provisions relating to owner-builders. The limitation for an
owner-builder subject to the tax as prescribed in Section 8A-417 shall
be based upon the date such tax liability is reportable or was reported,
as provided in Section 8A-417.
Sec. 8A-555. Tax Collector may examine books and other records; failure
to provide records.
(a) The Tax Collector may require the taxpayer to provide and may
examine any books, records, or other documents of any person who, in
the opinion of the Tax Collector, might be liable for any tax under this
Chapter, for any periods available to him under Section 8A-550.
(b) (Reserved)
(c) (Reserved)
(d) The Tax Collector may use any generally accepted auditing procedures,
including sampling techniques, to determine the correct tax liability of
any taxpayer. The only responsibility of the Tax Collector is that the
$' procedures used are in accordance with generally accepted auditing
standards. The taxpayer must prove by clear and convincing evidence
that the methods chosen do not .comply with generally accepted
auditing standards.
(e) The fact that the taxpayer has not maintained or provided such books
and records which the Tax Collector considers necessary to determine
the tax liability of any person does not preclude the Tax Collector from
making any assessment. In such cases, the Tax Collector is authorized
to use estimates, projections, or samplings, to determine the correct
tax. The provisions of Section 8A-545(b), concerning estimates, shall
apply-
(f) (Reserved)
Sec.,8A-560. Erroneous payment of tax; credits and refunds; limitations.
(a) Except as provided in Section 8A-565, the period within which a claim
for credit may be filed, or refund allowed or made if no claim is filed,
shah be as provided in A.R.S. Sections 42-115 and 42-129.
(b) (Reserved)
(c) (Reserved)
/ (d) (Reserved)
(e) (Reserved)
(f) The denial of a refund by the Tax Collector is subject to the provisions
of A.R.S. Section 42-130.
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(g) Any refund paid under the provisions of this Section shall be paid from
1 the Privilege Tax revenue accounts.
Sec. SA-565. Payment of tax to the incorrect Arizona city or town.
(a) When it is determined that taxes have been reported and paid to the
wrong Arizona city or town, a refund or assessment shall be made to
the correct city or town. The refund or assessment period shall be
limited to the forty-eight (48) month period prior to the date the City
receives or gives written request of the taxes due. The City shall
neither pay nor charge any interest or penalty on any overpayment or
underpayment except such interest and penalty actually paid by the
taxpayer relating to such tax.
(b) The limitations and procedures set forth in A.R.S. Section 42-1452 shall
apply to all payments under this Section.
(c) When reference is made in this Section to an Arizona city or town, and
payments made to or requested from such city or town, the provisions
shall be applicable to the Arizona Department of Revenue when it is
acting for or on behalf of an Arizona city or town.
Sec. 8A-567. Allocation of tax on retail sales when more than one Arizona city
or town has nexus.
(a) In cases of retail sales where the tangible personal property sold was
delivered from stock located at a point without the state of Arizona,
the tax imposed upon the retail sale in question shall be shared equally
between this City and the other city or town involved; provided that the
tangible personal property is not "mobile equipment" and either:
(I) transfer of title and possession occurred within the City, but the
order was received at a permanent business location of the seller
located in another Arizona city or town that imposes and
equivalent excise tax upon the transaction; or
(2) transfer of title and possession occurred in another Arizona city
or town that imposes an equivalent excise tax upon the
transaction, but the order was received at a permanent business
location of the seller located within the City.
(b) "Mobile Equipment," for the purposes of subsection (a) above, includes
any automobile, bicycle, motorcycle, truck, aircraft, boat, tractor,
forklift, or any other equipment that can move under its own power or
is designed as a method of transportation.
(c) "Shared Equally," for the purposes of subsection (a) above, shall mean:
(1 in cases where tax was collected as a separate charge from the
customer, that each city or town shall have the right to half of
the actual tax collected, even if the rate at which such tax was
collected differs from the appropriate tax rate of either city.
(2) in cases where the tax was not separately charged to the
customer but was reported and paid to one of the cities or towns
in question, that each city or town shall have the right to half of
the actual tax so paid, even if the rate at which such tax was
reported and paid differs from the appropriate tax rate of either
city.
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r
1, (3) in all other cases, each city or town shall have the right to half of
the tax liability on such a sale, to be determined by the tax rate
of the city or town of the seller's permanent business location.
(d) Claim, payment, and collection of taxes allocated between Arizona
cities and towns by the provisions of this Section shall be made in the
same manner as provided in Section SA-565 relating to tax paid to the
incorrect city or town.
Sec. SA-570. Administrative review; petition for hearing or for
redetermination; hearing or redetermination; finality of order.
(a) Closing agreements between the Tax Collector and a taxpayer have no
force of law unless made in accordance with the provisions of A.R.S.
Section 42-126.
(b) Payment of tax under protest. Payment under protest of tax, penalty
or interest due or assessed under this Chapter shall be deemed as
normal, unprotested payment of such unless the provisions of A.R.S.
Section 42-126 have been met.
(c) Administrative review.
(1) Petitions of appeal shall be made to, and hearings shall be
conducted by, the Arizona Department of Revenue, in accordance
.with the provisions of A.R.S. Section 42-122, as modified by
,. Section SA-571.
(2) (Reserved)
(3) (Reserved)
(4) (Reserved)
(5) Hearings shall be held by the Arizona Department of Revenue in
accordance with the provisions of A.R.S. Section 42-122. The
Department's decision may be appealed to the State Board of Tax
Appeals, in accordance with the provisions of A.R.S.
Section 42-124.
(6) (Reserved)
(7) , (Reserved)
(d) (Reserved)
(e) (Reserved)
Sec. 8A-571. Jeopardy assessments.
(a) If the Tax Collector believes that collection of any amounts imposed by
this Chapter will be jeopardized by delay, he shall issue notice to the
taxpayer in accordance with the provisions of A.R.S. Section 42-120.
(b) In cases where such jeopardy notice has been issued, the taxpayer must
meet the provisions of A.R.S. Section 42-120, concerning appeals of
jeopardy assessments, before any request for administrative review
shall be honored. Any bond or collateral that may be required shall
meet the provisions of A.R.S. Section 42-112.
l
(c) (Reserved)
(d) (Reserved)
(e) (Reserved)
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Sec. 8A-575. Judicial review.
(a) Appeal of a State Board of Tax Appeals decision to the courts is valid
only if all the provisions of A.R.S. Section 42-124 are met.
(b) (Reserved)
(c) (Reserved)
(d) (Reserved)
(e) The issuance of an adjusted or corrected assessment or notice of refund
due to the taxpayer, where made by the Tax Collector pursuant to the
decision of the Hearing Officer, shall not be deemed an acquiescence by
the City or the Tax Collector in said decision, nor shalt it constitute a
bar or estoppel to the institution of an action or counterclaim by the
City to recover any amounts claimed to be due to it by virtue of the
original assessment.
(f) After the initiation of any action in the appropriate court by either
party, the opposite party may file such counterclaim as would be
allowed pursuant to the Arizona Rules of Civil Procedure.
Sec. 8A-577. (Reserved)
,r Sec. 8A-580. Criminal penalties.
(a) It is unlawful for any person to knowingly or willfully:
(1) fail or refuse to make any return required by this Chapter.
(2) fail to remit as and when due the full amount of any tax or
additional tax or penalty and interest thereon.
(3) make or cause to be made a false or fraudulent return.
(4) make or cause to be made a false or fraudulent statement in a
return, in written support of a return, or to demonstrate or
support entitlement to a deduction, exclusion, or credit or to
entitle the person to an allocation or apportionment or receipts
subject to tax.
(5) fail or refuse to permit any lawful examination of any book,
account, record, or other memorandum by the Tax Collector.
(6) fail or refuse to remit any tax collected by such person from his
customer to the Tax Collector before the delinquency date next
following such collection.
(7) advertise or hold out to the public in any manner, directly or
indirectly, that any tax imposed by this Chapter, as provided in
this Chapter, is not considered as an element in the price to the
consumer.
(8) fail or refuse to obtain a Privilege License or to aid or abet
another in any attempt to intentionally refuse to obtain such a
license or evade the license fee.
(9) reproduce, forge, falsify, fraudulently obtain or secure, or aid or
abet another in any attempt to reproduce, forge, falsify, or
fraudulently obtain or secure, an exemption from taxes imposed
by this Chapter.
(b) The violation of any provision of subsection (a) above shall constitute a
Class One Misdemeanor.
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(c) In addition to the foregoing penalties, any person who shall knowingly
swear to or verify any false or fraudulent statement, with the intent
aforesaid, shall be guilty of the offense of perjury and on conviction
thereof shall be punished in the manner provided by law.
Sec. SA-590. Civil actions.
(a) Liens.
(1) Any tax, penalty, or interest imposed under this Chapter which
has become final, as provided in this Chapter, shall become a lien
when the City perfects a notice and claim of lien setting forth the
name of the taxpayer, the amount of the tax, penalty, and
interest, the period or periods for which due, the date of accrual
thereof and stating that the City claims a lien therefor.
(2) The notice of claim of lien shall be signed by the Revenue
Officer/City Clerk under his official seal or the official seal of
the City, and, with respect to real property, shall be recorded in
the office of the County Recorder of any county in which the
taxpayer owns real property, and, with respect to personal
property shall be filed in the office of the Secretary of State.
After the notice and claim of lien is recorded or filed, the taxes,
penalties, and interest in the amounts specified therein shall be a
lien on all real property of the taxpayer located in such county
where recorded, and all tangible personal property of the taxpayer
within the State, superior to all other liens and assessments
,r recorded or filed subsequent to the recording or filing of the
notice and claim of lien.
(3) Every tax imposed by this Chapter, and all increases, interest, and
penalties thereon, shall become from the time the same is due and
payable a personal debt from the person liable to the City, but
shall be payable to and recoverable by the Tax Collector and
which may be collected in the manner set forth in subsection (b)
below.
(4) Any lien perfected pursuant to this Section shall, upon payment of
the taxes, penalties, and interest affected thereby, be released by
the Tax Collector in the' same manner as 'mortgages and
judgments are released: The Tax Collector may, at his sole
discretion, release a lien in part, that is, against only specified
property, for partial payment of moneys due the City.
(b) Actions to recover tax. The Arizona Department of Revenue, or any
agent or representative authorized by that Department, may bring
action, in the name of the City, to recover taxes as provided in A.R.S.
Section 42-125.
Sec. 8A-595. Collection of taxes when there is succession in and/or cessation
of business.
(a) In addition to any remedy provided elsewhere in this City Code that
may apply, the Tax Collector may apply the provisions of subsections
(b) through (d) below concerning the collection of taxes when there is
succession in and/or cessation of business.
a:
-4 2-
t (b) The taxes imposed by this Chapter are a lien on the property of any
person subject to this Chapter who sells his business or stock of goods,
or quits his business, if the person fails to make a final return and
payment of the tax within fifteen (15) days after selling or quitting his
business.
(c) Any person who purchases, or who acquires by foreclosure, by sale
under trust deed or warranty deed in Iieu of foreclosure, or by any other
method, improved real property or a portion of improved real property
for which the Privilege Tax imposed by this Chapter has not been paid
shall be responsible for payment of such tax as a speculative builder or
owner builder, as provided in Sections 8A-416 and 8A-417.
(d) A person's successors or assignees shall withhold from the purchase
money an amount sufficient to cover the taxes required to be paid, and
interest or penalties due and payable, until the former owner produces a
receipt from the Tax Collector showing that all City tax has been paid
or a certificate stating that no amount is due as then shown by the
records of the Tax Collector.
(1) If a subsequent audit shows a deficiency arising before the sale of
the business, the deficiency is an obligation of the seller and does
not constitute a liability against a buyer who has received a
certificate from the Tax Collector.
(2) If the purchaser of a business or stock of goods fails to obtain a
certificate as provided by this Section, he is personally liable for
!' payment of the amount of taxes required to be paid by the former
a owner on account of the business so purchased, with interest and
penalties accrued by the former owner or assignees.
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Article VI - (Reserved)
Sec. 8A-600. (Reserved)
Sec. 8A-610. (Reserved)
Sec. 8A-620. (Reserved)
Sec. 8A-630. (Reserved)
Sec. BA-640. (Reserved)
Sec. SA-650. (Reserved)
Sec. 8A-660. (Reserved)
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REGULATIONS - PRIVILEGE AND EXCISE TAXES
Reg. SA-100.1. Brokers
(a) For the purposes of proper administration of this Chapter and to
prevent evasion of taxes imposed, brokers shall be wherever necessary
treated as taxpayers for all purposes, and shall file a return and remit
the tax imposed on the activity on behalf of the principal. No
deduction shall be allowed for any commissions or fees retained by such
broker, except as provided in Section 8A-405, relating to advertising
commissions.
(b) Brokers for vendors. A broker acting for a seller, lessor, or other
similar person deriving gross income in a category upon which this
Chapter imposes a tax shall be liable for such tax, even if his principal
would not be subject to the tax if he conducted such activity in his own
behalf, by reason of the activity being deemed a "casual' one. For
example:
(1) An auctioneer or other sales agent of tangible personal property is
subject to the tax imposed upon retail sales, even if such sales
would be deemed "casual" if his principal had sold such items
himself.
(2) A property manager is subject to the tax imposed upon rental,
leasing, or licensing of real property, even if such rental, leasing,
or licensing would be deemed "casual' if his principal managed
such real property himself.
(c) Brokers for vendees. A' broker acting solely for a buyer, lessee, tenant,
or other similar person who is a party to a transaction which may be
subject to the tax, shall be liable for such tax and for filing a return in
connection with such tax only to the extent his principal is subject to
the tax.
(d) The liability of a broker does not relieve the principal of liability
except upon presentation to the Tax Collector of proof of payment of
the tax, and only to the extent of the correct payment. The broker
shall be relieved of the responsibility to file and pay taxes upon the
filing and correct payment of such taxes by the principal.
Reg. 8A-100.2. Delivery, installation,'or other direct customer services.
(a) "Delivery Charges" exist only when the total charges to the ultimate
customer or consumer include, as separately charged to the ultimate
customer, charges for delivery to the ultimate consumer, whether the
place of delivery is within or without the City, and when the taxpayer's
books and records show the separate delivery charges.
(1) Identification to the customer or consumer that the listed price
has "delivery included" or other similar expression is insufficient
to show the delivery as a separate charge. Only the separately
stated charge for the delivery shall be deemed a "delivery
charge".
(2) Freight in. Charges for delivery from place of production or the
manufacturer to the vendor either directly or through a chain of
wholesalers or jobbers or other middlemen are deemed "freight-
in" and are not considered delivery.
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(b) "Installation", as used in this definition, relates only to tangible
r personal property. Installation to real property is deemed construction
contracting in this Chapter. Examples of installation relating to
- tangible personal property are: installing a radio in an automobile;
applying sun screens on the windows of a boat; installing cabinets,
carpeting, or "built-in appliances" to a camper or motorized
recreational vehicle.
(c) Repair of tangible personal property is not included in this definition.
See Regulation BA-465.1.
(d) "Direct Customer Services" means services other than repair rendered
directly to the customer. Services or labor provided by any person prior
to the transfer of tangible personal property to the customer or
consumer are not included in this definition. In the following examples,
the requirements of subsection (e) below are referred to by the words
"Identify" or "identification."
(1) A retailer sells a customer a $100 "plug-in" appliance, with a $25
delivery and installation charge. If the retailer identifies the $25
delivery and installation charge, it is a charge for direct customer
services.
(2) A caterer charges his customer $1,000 for the food and drink
served, $300 for setup and site cleanup, and $500 for bartender
and waiters. If all charges are properly identified, only the $300
for set up and cleanup is a charge for direct customer services,
and the $1,500 for food and service is restauranting gross income.
(3) Persons engaged in engraving on wood, metal, stone, etc. or
persons engaged in retouching photographs or paintings may
consider such charges for labor as direct customer services.
(4) All charges by- a photographer resulting in the sale of a
photograph (sitting charges, developing, making enlargements,
retouching, etc.) for services that occur prior to transfer of
tangible personal property are not direct customer services.
(5) An equipment rental company charging $25 for delivery may
consider such delivery charge as a charge for direct customer
service only if such charge is properly identified.
(6) Even if identified, charges for labor incurred in the production of
any manufactured article or of a custom-made article (jewelry,
artwork, tailoring, draperies, etc,) are not included in this
definition, as such labor occurs prior to the transfer of property.
(e) Recordkee in, requirements.
(1) �Any person who engages in transactions involving these services
must:
(A) Separately bill, invoice, or charge the customer for such
services in a manner by which the customer or consumer
may readily identify the specific dollar amount of the
service charge; and
(B) Maintain business books and records in a manner in which
the separate charge for such services can be clearly
identified, to the satisfaction of the Tax Collector.
(2) Rendering a statement to a customer for a transaction involving
/ such services and the transfer of tangible personal property which
only indicates the total amount of the charges with words such as
"services included" or "charge includes labor and parts" or similar
a expression does not satisfy the requirements of this subsection.
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Reg. 8A-100.3. Retailers.
When in the opinion of the Tax Collector it is necessary for efficient
administration of this Chapter, he may regard any salesman, representative,
peddler, canvasser, or agent of any dealer, distributor, supervisor, or employer
under whom he operates or from whom he obtains tangible personal property for
sale, rental, lease, or license as a retailer for the purposes of this Chapter,
irrespective of whether he is making sales, rentals, leases, or licenses on his own
behalf or on behalf of others. The Tax Collector may also regard such dealer,
distributor, supervisor, or employer as a retailer for the purposes of this Chapter.
Reg. 8A-110.1. Income-producing capital equipment: in general.
(a) The term "income-producing capital equipment" applies only when the
purchaser or lessor is directly using, such equipment primarily for the
purpose of directly producing income in his normal course of business.
For example:
(1) Rental of a printing press to a job printer would qualify. Rental
of the same equipment to a trade school or an airline company
would not qualify.
(2) A lease of an electric generator rated at 75KV to an electric
utility company or a manufacturer or job printer would qualify.
The same lease to a telecommunications company or an irrigation
district would not qualify.
(b) Note the "two-pronged test" this definition requires:
(1) the purchaser or lessor must be engaged in a business that directly
uses the item to produce income; and
1 (2) the item is to be directly used in the production of income.
Ancillary equipment for backup power, removal of wastes,
storage, transport of materials, etc. do not qualify unless the
definition allows it for that specific business activity.
Reg. 8A-I 10.2. Income-producing capital equipment: manufacturing equipment;
job printing equipment.
(a) Manufacturing involves the change of tangible personal property into a
new form of tangible personal property. This may involve activities
often called "processing" or "fabricating", for example: making
electronic parts in quantity, refining crude oil, pasteurizing milk,
fabricating a mobile home, producing syrup for soft drinks from other
ingredients. Therefore, there are four reasons why an activity is not
considered manufacturing, as follows, with examples.
(1) The activity is specifically defined elsewhere in this Chapter. For
example: publishing; construction contracting; baking or cooking
food (defined as restaurant activity).
(2) The activity does not begin with a physical product ("raw
materials"). For example: word processing; electronic data
processing; photography; video or sound recording by a recording
studio.
(3) The activity does not physically change the raw materials into
another form of tangible personal property. For example: sorting
or "screening" sand, gravel, or rock; picking cotton; stuffing
envelopes; chilling (but not freezing) water; cooling or heating air.
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(4) The "finished product" is.not tangible personal property available
for sale. For example: broadcasting by radio or television waves;
cooling or heating air; electronic data processing.
(b) Manufacturing is limited to those activities involving the actual
changing of tangible personal property into another form, and not to
include any other activities of persons involved in the business of
manufacturing. Therefore,
(1) Items typically called "work in process" are often produced from
"raw materials" or other "work in process" and then stockpiled
until needed at a later stage in production (or perhaps sold in this
form). For the purposes of this Chapter, the activity of
manufacturing is deemed to cease when the last act of physically
combining, separating, or otherwise changing of this "work in
process" ceases, and does not resume until such "work in process"
is again used in the production process as "raw material" for such
process.
(2) "In-line" inspection procedures (between the 5th and bth steps of
an assembly process, for example) shall be deemed part of the
activity of manufacturing, provided that the material so inspected
is not physically removed from the location of the production
process (removal to the Quality Assurance labs or the stockroom,
for example, would be deemed to be removal from the physical
location of the production process). Therefore, activities that
occur in the Quality Assurance labs, stockroom, or other such
locations are by definition not part of the activity of
manufacturing.
(3) Packaging shall be deemed part of the manufacturing activity if:
(A) the packaging process is an integral part of the production
- process, and
W the goods so packaged have come directly from the
production process (or from an "in-line" inspection as
defined above).
(4) Only "in-line" materials handling shall be deemed as part of the
activity of manufacturing, in a manner similar to "in-line"
inspection procedures. Therefore delivery or the moving of
materials up to and including delivery to the first stage of the
production process (or the first stage of separate phase of
production, when in reference to "work in process") is not part of
the manufacturing activity. In like manner, delivery to the
stockroom, Quality 'Assurance labs, or other such place not
deemed part of the production process, and that and all
subsequent movement of such materials until they have once
again entered the production process, are deemed not to be part
of the activity of manufacturing.
(c) The activity of job printing shall be determined in a manner similar to
that provided above relating to "manufacturing".
(d) The following items are specifically not included as machinery .or
equipment which is acquired for use primarily during the activity of
manufacturing or job printing:
(1) equipment used primarily for the storage of materials when not
1 being physically changed (for example, storage vats or bins,
holding tanks).
(2) materials handling equipment (for example, dollies, fork lifts,
hand trucks) not used directly "in-line".
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(3) ancillary testing equipment of all kinds (for example, testing
equipment in the Quality Assurance area or in the stockroom).
(4) ancillary packaging equipment of all kinds (for example,
packaging equipment in the stockroom or mailroom).
(5) ancillary equipment used for the treatment or removal of waste
products of the activity (for example, air-scrubbing equipment,
wastewater treatment equipment).
(6) any structural changes to real property (for example, plumbing or
electrical changes to a structure, loading docks).
Reg. 8A-115.1. Computer hardware, software, and data services.
(a) Definitions.
(1) "Computer Hardware" (also called "computer equipment" or
'"peripherals" is the components and accessories which constitute
the physical computer assembly, including but not limited to:
central processing unit, keyboard, console, monitor, memory unit,
disk drive, tape drive or reader, terminal, printer, plotter,
modem, document sorter, optical reader and/or digitizer,
network.
(2) "Computer Software" (also called "computer program") is tangible
personal property, and includes:
(A) "Operating Program (Software)" (also called "executive
program (software)"), which is the programming system or
technical language upon which or by means of which the
basic operating procedures of the computer are recorded.
The operating program serves as an interface with user
applied programs and allows the user to access the
1 computer's processing capabilities.
(3) "Applied Program (Software)", which is the programming
system or technical language (including the tape, disk,
cards, or other medium upon which such language or
program is recorded) designed either for application in a
specialized use, or upon which or by means of which a plan
for the solution of a particular problem is based. Typically,
applied programs can be transferred from one computer to
another via storage media. Examples of applied programs
include: payroll processing, general ledger, sales data,
spreadsheet, word processing, and data management
programs.
(3) "Storage Medium" is any hard disk, compact disk, floppy disk,
diskette, diskpack, magnetic tape, cards, or other medium used
for storage of information in a form readable by a computer, but
not including the memory of the computer itself.
(4) A "Terminal Arrangement" (also called "'on-line' arrangement") is
any agreement allowing access to a remote central processing
unit through telecommunications via hardware.
(5) A "Computer Services_ Agreement" (also called "data services
agreement") is an agreement allowing access to a computer
through a third-party operator.
(b) For the purposes of this Chapter, transfer of title and possession of the
following are deemed sales of tangible personal property and any other
transfer of title, possession, or right to use for a consideration of the
following is deemed rental, leasing, or licensing of tangible personal
property:
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(1) Computer hardware or storage media. Rental, leasing, or
licensing for use of computer hardware or storage media includes
the lessee's use of such hardware or storage media on the lessor's `
premises.
(2) Computer software which is not custom computer programming.
Such prewritten ("canned") programs may be transferred to a
customer in the form of punched cards, magnetic tape, or other
storage medium, or by listing the program instructions on coding
sheets. Transfer is deemed to have occurred whether title to the
storage medium upon which the program is recorded, coded, or
punched passes to the customer or the program is recorded,
coded, or punched on storage medium furnished by the customer.
Gross income from the transfer of such prewritten programs
includes:
(A) the entire amount charged to the customer for the sale,
rental, lease, or license for use of the storage medium or
coding sheets on which or into which the prewritten program
has been recorded, coded, or punched.
($) the entire amount charged for the temporary transfer or
possession of a prewritten program to be directly used or to
be recorded, coded, or punched by the customer on the
customer's premises.
(C) license fees, royalty fees, or program design fees; any fee
present or future, whether for a period of minimum use or
of use for extended periods, relating to the use of a
prewritten program.
V the entire amount charged for transfer of a prewritten
•r" ("canned") program by remote telecommunications from the
i transferor's place of business to or through the customer's
` computer.
(E) any charge .for the purchase of a maintenance contract
which entitles the customer to receive storage media on
which prewritten program improvements or error
corrections have been recorded or to receive telephone or
on-site consultation services, provided that:
W if such maintenance contract is not optional with the
customer, then the charges for the maintenance
contract, including the consultation services, are
deemed gross income from the transfer of the
prewritten program.
(ii) if such maintenance contract is optional with the
customer but the customer does not have the option to
purchase the consultation services separately from the
storage media containing the improvements or error
corrections, then the charges for the maintenance
contract, including the consultation services, are
deemed gross income from the transfer of the
prewritten program.
(iii) if such maintenance contract is optional with the
customer and the customer may purchase the
consultation services separately from the storage
media containing the improvements or error
corrections, then only the charges for such
improvements or error corrections are deemed gross
income from the transfer-of a prewritten program and
charges for consultation are deemed to be charges for
professional services.
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(c) Producing the following by means of computer hardware is deemed to
be the activity of job printing for the purposes of this Chapter:
(1) statistical reports, graphs, diagrams, microfilm, microfiche,
i photorecordings, or any other information produced or compiled
by a computer; except as provided in subsection (e) below.
(2) additional copies of records, reports, manuals, tabulations, etc.
"Additional Copies" are any copies in excess to those produced
simultaneously with the production of the original and on the
same printer, whether such copies are prepared by running the
same program, by using multiple printers, by looping the program,
by using different programs to produce the same output, or by
other means.
(d) Charges for the use of communications channel in conjunction with a
terminal arrangement or data services agreement are deemed gross
income from the activity of providing telecommunication services.
(e) The following transactions are deemed direct customer services,
provided that charges for such services are separately stated and
maintained as provided by Regulation $A-100.2(e):
(1) "Custom (Cam up ter) Programming", which is any computer
software which is written or prepared for a single customer,
including those services represented by separately stated charges
for the modification of existing prewritten programs.
(A) Customer computer programming is deemed a professional
service regardless of the form in which the programming is
transferred.
(B) Custom programming includes such programming performed
in connection with the sale, rental, lease, or license for use
of computer hardware, provided that the charges for such
are separately stated from the charges for the hardware.
(C) Custom computer programming includes a program prepared
to the special order of a customer who will use the program
to produce copies of the program for sale, rental, lease, or
license. The subsequent sale, rental, lease, or license of
such a program is deemed the sale, rental, lease, or license
of a prewritten program.
(2) Training services related to computer hardware or software,
provided further that:
(A) the provider of such training services is deemed the
ultimate consumer of all tangible personal property used in
training others or provided to such trainees without
separately itemized charge for the materials provided.
(B) training deemed a direct customer service does not include:
G) training materials, books, manuals, etc. furnished to
customers for a charge separate from the charge for
training services.
(ii) training provided to customers without separate
charge as part of the sale, rental, lease, or license of
computer hardware or software, or as part of a
terminal arrangement or data services agreement.
(3) The use of computer time through the use of a terminal
arrangement or a data service agreement, but not charges for
computer hardware located at the customer's place of business
(for example, the terminal, a printer attached to the terminal, a
modem used to communicate with the remote central processing
unit over a telephone line).
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(4) Compiling and producing, as part of a terminal arrangement or
computer services agreement, original copies of statistical
i reports, graphs, diagrams, microfilm, microfiche,
photorecordings, or other information for the same person who
supplied the raw data used to create such reports.
(f) (Reserved)
Reg. SA-120.1. (Reserved)
Reg. SA-200.1. When refundable deposits are includable in gross income.
Refundable deposits shall be includable as gross income of the taxpayer for the
month in which received, and will be allowed as deductible refunds for the month in
which actually paid back, unless the taxpayer;
(1) maintains all such deposits in a separate investment account
which is not subject to use or expenditure by the taxpayer; and
(2) pays interest at at least one-half of one percent (1/2%) per month
from the date of deposit to the depositor, payable upon refund
which shall not be later than thirty (30) days subsequent to the
return of the equipment or other end of period of possession
involved; and
(3) includes forfeited deposits in gross income at time of forfeiture.
Reg. 8A-250.1. Excess tax collected.
If a taxpayer collects taxes in excess of the combined tax from any customer in
!' any transaction, all such excess tax shall be paid to the taxing jurisdictions in
proportion to their effective rates. The right of the taxpayer to charge his
customer for his own liability for tax does not allow the taxpayer to enrich himself
at the cost of his customers.
Reg. 8A-270.1. Proprietary activities of municipalities are not considered
activities of a governmental entity.
The following activities, when performed by a municipality, are considered to be
activities of a person engaged in business for the purposes of this Chapter, and not
excludable by reason of Section 8A-270:
(a) rental, leasing, or licensing for use of real property to other than
another department or agency of the municipality.
M producing, providing, or furnishing electricity, electric lights, current,
power, gas (natural or artificial), or water to consumers or ratepayers.
(c) sale of tangible personal property to the public, when similar tangible
personal property is available for sale by other persons, as, for example,
at police or surplus auctions.
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Reg. SA-270.2. Proprietary clubs.
(a) Equity requirements. In order to qualify for exclusion under Section
BA-270, a proprietary club must actually be owned by the members.
For the purposes of qualification, a club will be deemed to be member-
owned if at least eighty-five percent (85%) of the equity of the total
amount of club-owned property is owned by bona fide individual
members whose membership is represented in the form of shares,
certificates, bonds, or other indicia of capital interest. A corporation
may be considered an individual owner provided that it owns a
membership solely for the benefit of one or more of its employees and
it is not engaged in any business activity connected with the operation
of the club.
(b) Gross revenue requirements. In computing gross revenue for the
computation of this fifteen percent (I5%) rule of subsection SA-
270(c)(1),
(1) the following shall be excluded:
(A) membership dues.
(B) membership fees which relate to the general admission to
the club on a periodic (or perpetual) basis.
(C) assessments.
(D) special fund raising events, raffles, etc.
(E) donations, gifts, or bequests.
(F) gate receipts, admissions, and program advertising for not
more than one tournament in any calendar year.
(2) the following must be included:
(A) green fees, court use fees, and similar charges for the
actual use of a facility or part thereof.
(B) pro shop sales if the shop is owned by the club.
(C) golf cart rental if the carts are owned by the club.
(D) rentals, percentages, or commissions received for
permitting the use of the premises or any portion thereof
by a caterer, concessionaire, professional, or any other
person for sales, rental, leasing, licensing, catering, food or
beverage service,,or instruction.
(E) all receipts from food or beverage sales, room use or rental
charge, corkage and catering charges, and similar receipts.
(F) locker and locker room fees and attendants charges if paid
to the club.
(G) tournament entry fees other than entry fees for the one
annual tournament exempt under subsection (b)(10) above.
Reg. SA-300.1. Who must apply for a license.
(a) For the purposes of determining whether a license is required under
Section BA-300, a person shall be deemed to be "engaged in or
continuing in business" within the City, if he meets any of the following
conditions:
(1) He is engaged in any activity subject to the City°s Privilege Taxes
as principal or broker.
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1 (2) He has or maintains within the City directly, or if a corporation
by a subsidiary, an office, distribution house, sales house,
warehouse or other place of business, or any agent or other
representative operating within this City under the authority of
such person or if a corporation its subsidiary, irrespective of
whether such place of business or agent or other representative is
located here permanently or temporarily or whether such person
or subsidiary is authorized or licensed to do business in this State
or this City.
(3) He is soliciting sales, orders, contracts, leases, and other similar
forms of business relationships, within the City from customers,
consumers, or users located within the City, by means of
salesmen, solicitors, agents, representatives, brokers, and other
similar agents or by means of catalogs or other advertising,
whether such orders are received or accepted within or without
this City.
(4) (Reserved)
(5) He is required to report and pay the tax upon Rental Occupancy
imposed by Section SA-440.
(b) (Reserved)
Reg. SA-350.1. Recordkeeping: income.
The minimum records required for persons having gross income subject to, or
exempt or excluded from, tax by this Chapter must show:
(a) the gross income of the taxpayer attributable to any activity occurring
in whole or in part in the City.
(b) the gross income taxable under this Chapter, divided into categories as
stated in the official City tax return.
(c) the gross income subject to Arizona Transaction Privilege Taxes,
divided into categories as stated in the official State tax return.
(d) the gross income claimed to be exempt, and with respect to each
activity or transaction so claimed:
(1) if the transaction is claimed to be exempt as a sale for resale or
as a sale, rental, lease, or license for use of rental equipment:
(A) the City Privilege License number and State Transaction
Privilege Tax License number of the customer (or the
equivalent city, if applicable, and state tax numbers of the
city and state where the customer resides), and
(B) the name, business address, and business activity of the
customer, and
(C) evidence sufficient to persuade a reasonably prudent
businessman that the transaction is believed to be in good
faith a purchase for resale, or a purchase, rental, lease, or
license for use of rental equipment, by the vendee in the
ordinary and regular course of his business activity, as
provided by Regulation.
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(2) if the transaction is claimed to be exempt for any other reason:
(A) the name, business address, and business activity of the
customer, and
(8) evidence which would establish the applicability of the
exemption to a reasonably prudent businessman acting in
good faith. Ordinary business documentation which would
reasonably indicate the applicability of an exemption shall
be sufficient to relieve the person on whom the tax would
otherwise be imposed from liability therein, if he acts in
good faith as provided by Regulation.
(e) with respect to those allowed deductions or exclusions for tax collected
or charges for delivery or other direct customer services, where
applicable, evidence that the deductible income has been separately
stated and shown on the records of the taxpayer and on invoices or
receipts provided to the customer. All other deductions, exemptions,
and exclusions shall-be separately shown and substantiated.
(f) with respect to special classes and activities, such other books, records,
and documentation as the Tax Collector, by regulation, shall deem
necessary for specific classes of taxpayer by reason of the specialized
business activity of any such class.
(g) In all cases, the books and records of the taxpayer shall indicate both
individual transaction amounts and totals for each reporting period for
!" each category of taxable, exempt, and excluded income defined by this
} Chapter.
Reg. 8A-3S0.2. Recordkeeping: expenditures.
The minimum records required for persons having expenditures, costs, purchases
and rental or lease or license expenses subject to, or exempt or excluded from, tax
by this Chapter are:
(a) the total price of all goods acquired for use or storage in the City.
(b) the date'of acquisition and the name and business address of the seller
or lessor of all goods acquired for use or storage in the City.
(c) documentation of taxes, freight, and direct customer service labor
separately charged and paid for each purchase, rental, lease, or license.
(d) the gross price of each acquisition claimed as exempt from tax, and
with respect to each transaction so claimed, sufficient evidence to
satisfy the Tax Collector that the exemption claimed is applicable.
(e) as applicable to each taxpayer, documentation sufficient to the Tax
Collector, so that he may ascertain:
(1) all construction expenditures and all Privilege and Use Taxes
claimed paid, relating to owner-builders and speculative builders.
(2) disbursement of collected gratuities and related payroll
information required of restaurants.
(3) franchise and license fee payments and computations thereto
which relate to:
(A) utility service
(8) telecommunication service.
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(4) the validity of any claims of proof of exemption, as provided by
Regulation.
(5) a claimed alternative prior value for reconstruction.
(6) (Reserved)
(7) (Reserved)
(8) payments of tax to the Arizona Department of Transportation and
computations therefor, when a motor-vehicle transporter claims
such the exemption,
(9) payments by tenants subject to the tax upon Rental Occupancy
imposed by Section 8A-444.
(f) any additional documentation as the Tax Collector, by Regulation, shall
deem necessary for any specific class of taxpayer by reason of the
specialized business activity of specific exemptions afforded to that
class of taxpayer.
(g) In all cases, the books and records of the taxpayer shall indicate both
individual transaction amounts and totals for each reporting period for
each category of taxable, exempt, and excluded expenditures as defined
by this Chapter.
Reg. 8A-350.3. Recordkeeping: out-of-City and out-of-State sales.
(a) Out-of-City Sales. Any person engaging or continuing in a business who
claims out-of-City sales shall maintain and keep accounting records or
.�" books indicating separately the gross income from the sales of tangible
personal property from such out-of-City branches or locations.
A (b) Out-of-State sales. Persons engaged in a business claiming out-of-State
sales shall maintain accounting records or books indicating for each
out-of-State sale the following documentation:
(1) documentation of location of the buyer at the time of order
placement; and
(2) documentation of residency of the buyer, determined in the
manner one determines if a person "resides within the City"; and
(3) shipping, delivery, or freight documents showing where the buyer
took delivery; and
(4) documentation of intended location of use or storage of the
tangible personal property sold to such buyer.
Reg. 8A-360.1. Proof of exemption: sale for resale; sale, rental, lease, or
license of rental equipment.
A claim of purchase for resale or of purchase, rental, lease, or license for rent,
lease, or license is valid only if the evidence is sufficient to persuade a reasonably
prudent businessman that the particular item is being acquired for resale or for
rental, lease, or license in the ordinary course of business. The fact that the
acquiring person possesses a Privilege License number, and makes a verbal claim of
"sale for resale or lease" or "lease for re-lease" does not meet this burden and is
insufficient to justify an exemption. The "reasonable evidence" must be evidence
which exists objectively, and not merely in the mind of the vendor, that the
property being acquired is normally sold, rented, leased, or licensed by the
acquiring person in the ordinary course of business. Failure to obtain such
reasonable evidence at the tirne of the transaction will be a basis for disallowance
of any claimed deduction on returns filed for such transactions.
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Reg. 8A-360.2. Proof of exemption: exemption certificate.
For the purpose of proof of exemption, in transactions other than those in which
the proof is set by standard documentation as detailed in Regulations 8A-350.1 and
8A-360.1, the minimum acceptable proof and documentation for each transaction
shall be the completion, at the time of the transaction, in all material respects, of
a certificate containing all the information set forth below. For the purpose of
validating the vendor's claim of exemption, such certificate is sufficient if
executed by any person with apparent authority to act for the customer, and the
information provided validates the claim.
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r INVALID UNLESS COMPLETED IN FULL f
VENDOR'S NAME Sales Invoice No.
Customer's Exemption Claim
City of Apache Junction Privilege License (Sales) Tax
Customer's Business Name:
Customer's Business Address:
Specific Business Activity:
(e.g., if retailer, lessor, or
manufacturer, specify items
leased, sold or made, i.e.,
cars, computers, clothes, etc.)
Customer's License Nos. City: State:
ITEMS CLAIMED AS EXEMPT FROM TAX
: All Items on This Invoice or Purchase Order.
or
: Only Those Items marked with An "E".
REASON FOR CLAIMED EXEMPTION:
: The items claimed as exempt are sold, rented, leased, or licensed
by the above named customer in the normal course of its business activity.
or
: The items claimed as exempt are exempt .from the City of Apache
Junction Privilege Tax for the following specific reason(s):
CUSTOMEPUS CERTIFICATE
I certify that the above information is accurate to the best of my information and
belief, and that I am authorized by the Customer above to acquire the items
claimed as exempt on a tax-free basis on its behalf. I further understand that the
making, of a false or fraudulent claim to obtain a tax exemption is a Class One
Misdemeanor under City Code Section 8A-580.
Name Date
Title
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Reg. 8A-405.1. Local advertising examples.
r
For the purposes of illustration only, and not by way of limitation, the following
are provided as examples of local advertising subject to the tax:
(1) retail sales and rental establishments doing business within the
State when only one commonly designated business entity is
identified by name in the advertisement.
(2) financial institutions doing business within the State whether part
of a national chain or local business only.
(3) sales of real estate located within the State.
(4) health care facilities located within the State.
(5) hotels, motels, and apartments, whether a national chain or local
so long as the advertisement identifies any location within the
State.
(b) brokers doing business within the State whether stockbrokers, real
estate brokers, insurance brokers, etc.
(7) nonprofit organizations, which even though tax exempt, have an
office, whether national, local, or branch, within the State.
(8) political activity, except United States Presidential and Vice
Presidential candidates.
(9) restaurants or food service establishments which have one or
more branches, outlets, or franchises within the State even though
the local franchisee or licensee may not be responsible for the
placement of the advertisement.
(10) services provided by individuals or entities within the State such
as doctors, lawyers, architects, hairdressers, auto repair shops,
counseling services, utilities, contractors, auction houses, etc.
(11) coupons redeemable only at a single commonly designated
business entity within the State.
(12) theater, sports, and other entertainment events held at locations
within the State.
Reg. 8A-405.2. Advertising activity within the City.
A person engaged in advertising activity shall be considered to be doing business
entirety within the City if all or a major portion of the dissemination facilities such
as broadcasting studios, printing plants, or distribution centers are located within
the City limits. Billboard and other outdoor advertising companies shall be
considered to be doing business within the City to the extent they have billboards
or similar displays within the City. Remote studios patched to an in-City studio
and subject to engineering modulation or control at the in-City studio are
considered studios doing business in the City.
Reg. 8A-415.1. Distinction between the categories of construction
contracting.
For the purposes of this Chapter, transactions involving improvements to, or sales
of, real property are designated into one of the following categories, and these
categorizations shall apply, whether or not a person designates himself as a
contractor, construction manager, developer, or otherwise:
(a) A person performing improvements to real property is one of the
following:
(1) an "Owner-Builder" when the work is performed by the owner or
lessor or lessee-in-possession. An "owner-builder" may also be a
"speculative builder".
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(2) a "Prime Contractor" when performing work for the owner or
_ lessor or lessee-in-possession of the real property, unless that
person has provided a written declaration stating that: l }
(A) the owner-builder is improving the property for sale; and
(B) the owner-builder is liable for the tax for such construction
contracting activity; and
(C) the owner-builder has provided the contractor both his
Arizona Transaction Privilege Tax License number and his
City Privilege License number.
(3) a "Subcontractor" when performing work for either:
(A) a construction contractor who has provided the
subcontractor with a written declaration that he is liable
for the tax for the project and has provided the
subcontractor both his Arizona Transaction Privilege
License number and his City Privilege License number.
(B) an owner-builder who has provided the subcontractor with a
written declaration as provided in subsections (a)(2)(A)
through (a)(2)(C) above.
(b) An owner or lessor ("owner-builder") of improved real property is one
of the following:
(1) a "Speculative Builder" if he sells such property within twenty-
four (24) months after the improvement is "substantially
completed".
(2) an 'owner builder who is not a speculative builder" in all other
cases.
(c) The terms "owner", "lessor", and "lessee-in-possession" shall be deemed
to include any authorized agent for such person.
Reg. SA-415.2. Distinction between.construction contracting and certain
related activities.
(a) Certain rentals, leases, and licenses for use in connection with
construction contracting. Rental, leasing, or licensing of earthmoving
equipment with an operator shall be deemed construction contracting
activity. Rental, leasing, or licensing of any other tangible personal
property (with or without an operator) or of earthmoving equipment
without `an operator shall be deemed rental, leasing, or licensing of
tangible personal property.. For example:
(1) Rental of a backhoe,'bulldozer, or similar earthmoving equipment
with operator is construction contracting. Rental of these items
without an operator is rental of tangible personal property.
(2) Rental of scaffolding, temporary fences, or barricades is rental of
tangible personal property.
(3) Rental of pumps or cranes is rental of tangible personal property,
whether or not an operator is provided with the equipment rented.
(b) Distinction between construction contracting, retail, and certain direct
customer service activities.
! When an item is attached or installed on real property, it is ' a
construction contrasting activity and any subsequent repair,
removal, or replacement of that item is construction contracting.
(2) ' Items attached or installed on tangible personal property are
retail sales.
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(3) Transactions where no tangible personal property is attached or
installed are considered direct customer service activities (for
example: carpet cleaning, lawn mowing, landscaping
maintenance).
(4) Demolition, earth moving, and wrecking activities are considered
construction contracting.
(c) Prefabricated buildings; manufactured housing.
I Any prefabricated building or manufactured housing with respect
to which an affidavit of affixture has been recorded pursuant to
A.R.S. Section 42-641.01 shall be deemed an improvement of real
property, and any improvement or alteration of such
prefabricated building or manufactured housing shall be deemed
construction contracting activity.
(2) Any prefabricated building or manufactured housing with respect
to which an affidavit of affixture has not been recorded shall be
deemed tangible personal property for all purposes of this
Chapter. -
(3) A I'mobile home" shall qualify for this definition only to the
extent that such affidavit of affixture has been recorded at the
time of sale.
(d) Sale of consumable goods incorporated into or applied to real property
is considered a retail sale and not construction contracting. Examples
of consumable goods are lubricants, faucet washers, and air
conditioning coolant, but not paint.
(e) Installation or removal of tangible personal property which has
independent functional utility is considered a retail activity.
! "Tangible personal property which has independent functional
utility" must be able to substantially perform its function(s)
without attachment to real property. "Attachment to real
property" must include more than connection to water, power,
gas, communication, or other service.
(2) Examples of tangible personal property which has independent
functional utility include artwork, furnishings, "plug-in" kitchen
equipment, or similar items installed by bolts or similar
fastenings.
(3) Examples of tangible 'personal property which does not have
independent functional utility include wall-to-wall carpeting,
flooring, wallpaper, kitchen cabinets, or "built-in" dishwashers or
ranges.
(4) The installation of window coverings (drapes, mini-blinds, etc.) is
always a retail activity.
Reg. SA--416.1. Speculative builders: homeowner's bona fide non-business sale
of a family residence.
(a) A sale of real property which has been improved within twenty-four (24)
months prior to the sale shall be considered a "homeowner's bona fide
non-business sale" and not subject to the tax on speculative builders if:
(1) the property was actually used as the principal place of family
residence or vacation residence by the immediate family of the
seller for the six (6) months next prior to the offer for sale; and
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(2) the seller has not sold more than two (2) such residences (or, if
the residence is a vacation residence, two (2) such vacation
residences) within the thirty-six (36) months immediately prior to ! 1
the offer for sale; and
(3) the seller has not licensed, leased, or rented the sold premises for
any period within the twenty-four (24) month period prior to the
offer for sale.
(b) In the event that a homeowner of a family residence contracts with a
licensed construction contractor for improvements to a residence, all
construction contractors shall be considered prime contractors for the
imposition of the tax. Construction contracting on a family residence
shall be presumed to be for an owner's bona fide non-business purpose
and all construction contractors shall be required to report and pay the
tax imposed on all such improvements.
(c) Purchases by a homeowner of tangible personal property for inclusion in
any construction, alteration, or repair of his residence shall be subject
to tax as retail-sales to the ultimate consumer.
(d) "Owner" and "Homeowner" as used in this Regulation shall only mean an
individual, and no other entity, association, or representative shall
qualify; except that an administrator, executor, personal
representative, or guardian in guardianship or probate proceedings, for
the estate of a deceased or incompetent person or a minor, may claim
"homeowner" status for such person if such person would have otherwise
qualified with respect to the specific property involved.
Reg. 8A-416.2. Reconstruction contracting.
(a) "Reconstruction (of Real Property)" shall mean the subdividing of real
property and, in addition, all construction contracting activities
performed upon said real property; provided, however, that each of the
following conditions are met:
(1) a structure existed on said real property prior to the
reconstruction activity; and
(2) the "prior value" of said structure exceeds fifteen percent (15%)
of the "prior value" of the integrated property (land,
improvements, and structure); and
(3) the. total cost of all construction contracting activities performed
on said real property in the twenty-four (24) month period prior to
the sale of any part,of the real property exceeds fifteen percent
(15%) of the "prior value" of the real property; and
(4) the structure which existed on the real property prior to the
reconstruction activity still exists in some form upon the
property, and is included, in whole or in part, in the property sold.
(b) Except as provided in subsection (c) below, "prior value" means the
value of the total integrated property, with improvements, as existing
immediately prior to any reconstruction activity. Such value shall be
the full cash value of the property for secondary taxes as determined by
the County Assessor, as such statement of value includes both the land
and improvements, without any deduction or diminution. The value
shall be as set in the year which is immediately preceding the year in
which the reconstruction improvements are or could have been included
in the County Assessor's valuation. If the County Assessor's valuation is
-- contested or appealed, the final determination at either the `
administrative or judicial level shall apply,
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(c) "Alternative Prior Value" shall mean that as an alternative to the "prior
value" defined above, the taxpayer may use his actual cost of the
reconstructed property prior to reconstruction, provided that evidence
of such cost is presented to the Tax Collector and is determined by the
Tax Collector, in his sole discretion, to be satisfactory. Such evidence
shall consist, as a minimum, of proof of the actual, arms-length
acquisition price, accompanied by a full appraisal of all property
involved which appraisal shall have been performed by a real estate
broker or MAI appraiser specifically for the purpose of assisting in the
acquisition and further shall have been performed on behalf of the
seller or a lending institution which has lent at least sixty-five (65%)
percent of the acquisition price. (Only long term lending - not interim
or construction financing will be considered.) This alternative value
shall be used only if the property was acquired by the reconstruction
taxpayer not more than thirty-six (36) months prior to a "sale" as
defined below.
(d) A "sale" for the purpose of determining "alternative prior value" or
"reconstruction" only shall be deemed to have occurred as of the date
of the execution of a contract of sale or a deed (joint tenancy or
warranty) whichever is earlier, to a purchaser or grantee of any single
residential or other occupancy unit. In addition to the foregoing, a
lease with option to purchase a single residential unit shall be
considered a "sale" at the date of execution of such lease if said option
is exercisable by the lessee in not later than nine (9) months. Further in
the case of cooperative apartments, the sale date shall be the date of
execution of the contract selling (subject or not to encumbrances, liens
+r` or security interests) of a share, or a sufficient number of shares which
entitle the purchaser to the occupancy of a residential unit. In all cases
a person shall include a husband and wife as a community, or any co-
occupants of a single unit as joint tenants.
Reg. 8A-425.1. Distinction between job printing and certain related
activities.
(a) Computerized Printing. Computerized versions of all items which
would be taxable under Section SA-425 if . performed without
computerized assistance are considered taxable under that Section, and
therefore, are not exempt services.
(b) Book publishing. The printing of books shall be deemed job printing.
Sales of books shall be deemed retail sales.
W Publication of newspapers, magazines, or other periodicals shall not be
considered job printing for the purposes of this Chapter.
Reg. 8A-435.1. Distinction between publishing of periodicals and certain
related activities.
(a) Book publishing shall not be considered publication of newspapers,
magazines, or other periodicals for purposes of this Chapter. Sales of
books shall be deemed retail sales. The printing of books shall be
deemed job printing.
(b) Publication of newspapers, magazines, or other periodicals shall not be
considered job printing for the purposes of this Chapter.
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Reg. 8A-445.I. (Reserved)
Reg. 8A-445.2. Rental, leasing, and-licensing of real property as lodging:
- refundable and non-refundable deposits.
(a) Nonrefundable deposits for cleaning, keys, pet fees, maintenance, or for
any other purpose are deemed gross income upon receipt.
(b) "Security deposits" and other refundable deposits are deemed gross
income at the tune such deposits become forfeit, provided that they are
maintained in the manner required for security deposits by the Arizona
Residential Landlord and Tenant Act, Chapter 10, Title 33, Arizona
Revised Statutes. Failure to comply with such provisions with regard to
refundable deposits makes such deposits gross income at the time of
receipt.
Reg. 8A-445.3. Rental, leasing, and licensing of real property as lodging:
room and board; furnished lodging.
(a) Room and board.
(1) Rooming houses, lodges, or other establishments providing both
lodging and meals, shall maintain a record of the separate charges
made for the lodging and the meals..
(2) The charge for lodging shall be subject to the tax imposed by
Section 8A-445. The charge for meals is subject to the tax upon
restaurants and bars prescribed by Section 8A-455.
+r" (b) Furnished lodging. A person who provides lodging with furnishings shall
be deemed to be only in the business of rental, leasing, and licensing of
lodging, and not in the business of rental, leasing, and licensing of such
furnishings as tangible personal property, unless:
(1) Any tenant of any lodging space may choose to rent, lease, or
license such lodging space either furnished or unfurnished, and
(2) The lessor separately charges tenants for lodging and for
furnishings; and
(3) The lessor separately maintains his gross income from lodging and
from furnishings separately in his accounting .books and records.
If all of the above conditions are met, such person shall report both sources of
income separately to the City.
Reg. 8A-447.1. (Reserved)
Reg. 8A-450.1. Distinction between rental, leasing, and licensing for use of
tangible personal property and certain related activities.
(a) Certain rentals, teases, and licenses for use in connection with
construction contracting. Rental, leasing, or licensing of earthmoving
equipment with an operator shalt be deemed construction contracting
activity. Rental, leasing, or licensing of any other tangible personal
property (with or without an operator) or of earthmoving equipment
without an operator shall be deemed rental, leasing, or licensing of
tangible personal property. For example:
i (1) Rental of a backhoe, bulldozer, or similar earthmoving equipment
with operator is construction contracting. Rental of these items
without an operator is rental of tangible personal property.
-R20-
(2) Rental of scaffolding, temporary fences, or barricades is rental of
tangible personal property.
(3) Rental of pumps or cranes is rental of tangible personal property,
regardless of whether or not an operator is included with the
equipment rented.
(b) Distinction between equipment rental leasing, or licensing for use and
transporting for hire. The hiring of mobile equipment cranes,
airplanes, limousines, etc.) is considered rental, leasing, or licensing of
tangible personal property whenever the charge is for a fixed sum or
hourly rate. By comparison, the activity of a common carrier
conveying goods or persons for a fee based upon distance, and not time,
shall be considered transporting for hire.
Reg. SA-450.2. Rental, leasing, and licensing for use of tangible personal
property: membership fees; other charges.
(a) Membership, admission, or other fees charged by any rental club or
limited access lessor are considered part of taxable gross income.
(b) Gross income from rental, teasing, or licensing for use of tangible
personal property must include all charges by the lessor to the lessee
for repair, maintenance, or other service upon the tangible personal
property rented, leased, or licensed.
(c) (Reserved)
Reg. SA-450.3. Rental, leasing, and licensing for use of equipment with
1 operator.
In cases where the tangible personal property is rented, teased, or licensed with an
operator provided by the lessor, the charge for the operator shall not be includable
in the gross income from the rental, lease, or license of such tangible personal
property if the charge for the operator and the charge for the use of the equipment
are separately itemized to the Iessee and separately maintained on the books and
records of the lessor.
Reg. 8A-450.4. Rental, leasing, and licensing for use of tangible personal
property: semi-permanently or permanently installed' tangible personal
property.
(a) The term "semi-permanently or permanently installed" means that the
item of tangible personal property has and is expected to have at the
time of installation a permanent location at the site installed, as under
a long-term lease agreement, except that the person using or applying
said property may eventually replace it because it has become worn out
or has become obsolete or the person ceases to have the right to
possession of said property.
(b) An item of tangible personal property-is deemed permanently installed
if its installation requires alterations to the premises.
(c) Examples of "semi-permanently or permanently installed tangible
personal property" include, but are not limited to: computers,
? duplicating machines, furniture not of portable design, major
appliances, store fixtures.
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(d) The term does not include mobile transportation equipment or tangible
_ personal property designed for regular use at different locations or
customarily used at different locations, as under numerous short-term
rental, lease, or license agreements, whether or not such property is in
fact so used.
(1) For example, use of a mobile crane, trencher, automobile, or
other similar equipment shall be considered a rental, lease, or
license transaction subject to taxation only by the city or town in
which such business office of the lessor is based.
(2) Other similar examples include, but are not limited to: camping
equipment, contracting equipment, chain saw, forklift, household
items, invalid needs, janitorial equipment, reducing equipment,
furniture of portable design, trucks or trailers, tools, towbars,
sump pumps, arc welders.
(e) A rental, lease, or license agreement which specifies that the item in
question shall remain, under the terms of the agreement, located within
the same city or town for more than one hundred eighty (180)
consecutive days shall be sufficient evidence that such rented, leased,
or licensed item is "permanently or semi-permanently installed" in said
city or town, except when the item is mobile transportation equipment
or one of the other types of portable equipment or property described in
subsection (d) above.
Reg. 8A-455.1. Gratuities related to restaurant activity.
Gratuities charged by or collected by persons subject to the tax imposed by Section
8A-455 may be excluded from gross income if:
(1) such charge is separately stated upon the bill, invoice, etc.
provided the customer, and such amounts are maintained
separately in the books and records of the taxpayer; and
(2) such gratuities are distributed in total to employees of the
taxpayer in addition to customary and regular wages.
Reg. 8A-460.1. Distinction between retail sales and certain other transfers
of tangible personal property.
(a) Charges for transfer of tangible personal property included in the gross
income of the business activity of persons engaged in the following
business activities shall be deemed only as gross income from such
business activity and not sales at retail taxed by Section 8A-460:
(1) tangible personal property incorporated into real property as part
of reconstruction or construction contracting, per Sections 8A-
415 through 8A-418.
(2) Sales of feed at wholesale, per Section 8A-420.
(3) job printing, per Section 8A-425.
(4) mining, timbering, and other extraction, but not sales of sand,
gravel, or rock extracted from the ground, per Section 8A-430.
(5) publication of newspapers, magazines, and other periodicals, per
Section 8A-435.
(6) rental, leasing, and licensing of real or tangible personal property,
per Sections 8A-445 or 8A-450.
s (7) restaurants and bars, per Section 8A-455.
(8) telecommunications services, per Section 8A-470.
(9) utility services, per Section 8A-480.
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(b) Distinction between construction contracting, retail, and certain direct
customer service activities.
(1) When an item is attached or installed on real property, it is a
construction contracting activity and any subsequent repair,
removal, or replacement of that item is construction contracting.
(2) Items attached or installed on tangible personal property are
retail sales.
(3) Transactions where no tangible personal property is attached or
installed- are considered direct customer service activities (for
example: carpet cleaning, lawn mowing, landscape maintenance).
(4) Demolition, earth moving, and wrecking activities are considered
construction contracting.
(c) The sale of sand, rock, and gravel extracted from the ground shall be
deemed a sale of tangible personal property and not mining or
metallurgical activity.
(d) Sale of consumable goods incorporated into or applied to real property
is considered a retail sale and not construction contracting. Examples
of consumable goods are lubricants, faucet washers, and air
conditioning coolant, but not paint.
(e) Installation or removal of tangible personal property which has
independent functional utility is considered a retail activity.
(1) "Tangible personal property which has independent functional
utility" must be able to substantially perform its function(s)
without attachment to real property. "Attachment to real
property" must include more than connection to water, power,
gas, communication, or other service.
(2) Examples of tangible personal property which has independent
functional utility include artwork, furnishings, "plug-in" kitchen
equipment, or similar items installed by bolts or similar
fastenings.
(3) Examples of tangible personal property which does not have
independent functional utility include wall-to-wall carpeting,
flooring, wallpaper, kitchen cabinets, or "built-in" dishwashers or
ranges..
(4) The installation of window coverings (drapes, mini-blinds, etc.) is
always a retail activity.
Reg. 8A-460.2. Retail sales: trading stamp company transactions.
A trading stamp transaction is defined as follows: the trading stamp company
issues stamps to a vendor; the vendor then provides them to its customers; and the
customer then exchanges the stamps for merchandise from the trading stamp
company.
The exchange transaction for the merchandise shall be deemed a retail sale and the
trading stamp company a retailer. All taxes imposed by this Chapter applicable to
retail transactions are therefore applicable to such exchange transactions.
The rate of tax shall be the retail rate based upon the retail dollar value of the
redeemed merchandise as expressed in the redemption dollar value per book of
stamps or portion thereof. The tax imposition described herein is in lieu of any
Privilege or Use Tax upon the business of issuing stamps, redeeming the same, or
using or storing property redeemed.
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Reg. SA-460.3. Retail sales: membership fees of retailers.
Membership, admission, or other fees charged by limited access retailers are
�- considered part of taxable gross income of the business activity of selling tangible
personal property.
Reg. SA-460.4. Retail sales: professional services.
(a) "Professional Services" refer to services rendered by such persons as
doctors, lawyers, accountants, architects, etc. for their customers or
clients where the services meet particular needs of a specific client and
only apply in the factual context of the client and the final product has
no retail value in itself. For example, opinion letters, workpapers,
reports, etc. are not in a form which would be subject to retail sales to
customers. However, transfer of items in a form which would be
subject to retail sales (e.g., artwork, forms, manuals, etc.) would not be
considered professional services. The issue is one of fact which must be
resolved in each situation.
(b) Creative ("idea") labor and design labor that do not result in tangible
personal property that will be or can be sold are deemed professional
services and, if charged separately and maintained separately in the
taxpayer's books and records, are not includable in gross income.
(c) "Professional services" shall be deemed to include those items of
tangible personal property which are incidental to the services
rendered, provided such tangible personal property is "inconsequential."
(1) Incidental transfers of tangible personal property shall be
regarded as "inconsequential" if,
(AT the purchase price of the tangible personal property to the
person rendering the professional services represents less
than fifteen percent (15%) of the charge, billing, or
statement rendered to the purchaser in connection with the
transaction, and
(B) the tangible personal property transferred is not itself in a
form which is subject to retail sale.
(2) In cases where the tangible personal property transferred is
deemed inconsequential_, the provider of the tangible personal
property so transferred is deemed the ultimate consumer of such
tangible personal property, and subject to all applicable taxes
imposed by this Chapter upon such transfer.
(d) Examples:
(1) The transfer of paper embodying the result or work product of the
services rendered by an attorney or certified public accountant is
regarded as inconsequential to the charges for professional
services.
(2) An appraisal report issued by an appraiser, reflecting such
appraiser's efforts to appraise real estate, is regarded
inconsequential.
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(3) Use of a hair care product on a client's hair by a barber or
beautician in connection with performing professional services is
usually inconsequential. On the other hand, if the barber or
i beautician supplies the customer with a bottle of the product for
the client's use thereafter and without the professional's
assistance, the transfer of the bottle of hair care product is
deemed not inconsequential.
(4) If a mortician properly segregates his professional services from
other taxable activities on his bill (invoice, contract), his gross
income would include only the income derived from the sale of
tangible personal property (casket, cards, flowers, etc.) and
rental, leasing, or licensing of real and tangible personal property.
His charges for professional services (embalming, cosmetic work,
etc.) would not be includable in gross income.
Reg. SA-460.5. Retail sales: monetized bullion; numismatic value of coins.
(a) "Monetized Bullion" means coins or other forms of money manufactured
or minted from precious metals or other metals and issued as legal
tender or a medium of exchange by or for any government authorized to
do so.
(b) Any coin shall be considered to have been transferred or acquired
primarily for its "Numismatic value" if the sale or acquisition price:
(1) is equal to or greater than twice (2 times) the value of the
metallic content of the coin as of the date of transfer or
acquisition; and
(2) is equal to or greater than twice (2 times) its face value, in the
case of a coin which, at the time of transfer or acquisition, was
legal tender or a medium of exchange of the government issuing
or authorizing its issuance.
Reg. 8A-460.6. Retail sales: consignment sales.
Sales of merchandise acquired on consignment are taxable as retail sales. In cases
where the merchant is acting as an agent on behalf of another dealer, sales of the
consigned merchandise are taxable to the principal, provided.the merchant makes
full disclosure to customers that he is acting only as an agent for the named
principal. However; when the principal'is not deemed to be a dealer, such sales
are considered to be those of the merchant and are taxable to him.
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Reg. 8A-465.1. Retail sales: repair services.
(a) Fair market value of parts and labor charges. The Tax Collector may
examine the reporting of a transactions covered by this Section to
determine if an "arms-length" price is charged for the parts and
materials. The applicable tax may not be avoided by pricing a part,
which ordinarily sells to the customer at $10, at $5 and including the
difference as "service" or "labor". In the absence of satisfactory
evidence supplied by the taxpayer as to industry or business practice,
the Tax Collector may use the cost of the part or materials to the
taxpayer marked up by a reasonable profit, to estimate the gross
income subject to tax.
(b) (Reserved)
(1) (Reserved)
(2) (Reserved)
Reg. 8A-465.2. (Reserved)
Reg. 8A-465.3. Retail sales: sale of containers, paper products, and labels.
(a) The sale of a "primary container" to a retailer or manufacturer is
exempt. "Primary Container" means packaging material or a container
such as a bottle, can, cup, bag, box, etc., which contains personal
property prior to such property's sale and which is necessarily
transferred with the tangible personal property it contains at the time
of sale. Examples of such exempt primary containers include but are
not limited to:
(1) packaging materials sold to a manufacturer of video equipment
for containment of the product during shipment.
(2) cellophane-type wrap sold to a meat department or butcher for
containment of the individually wrapped or contained meat.
(3) bags used to contain loose fungible goods such as fruits,
vegetables, and other products sold in bulk, where such bags or
containers are necessary to contain and measure the amount
purchased by the customer.
(b) Sales of containers other than primary containers as defined above, are
not exempt and are thus subject to tax. Examples of such taxable
containers include but not limited to:
(1) shopping bags sold to grocery stores, department stores, or other
retailers.
(2) gift wrapping and gift boxes provided to the customer without
charge.
(3) paper bags and similar containers sold to restaurants for
containment of individually wrapped or contained food for
consumption off the premises (including food which was originally
sold for consumption on the premises but a portion of which is
removed thereafter).
(c) Where a retailer imposes a charge for gift wrapping and the charge
includes the container, paper, and other appropriate materials, the
wrapping charge shall be considered a direct customer service and not a
sale. Such gif t paper, boxes, tissue paper, ribbons, etc., shall be
subject to tax when sold to the retailer.
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(d) Restaurants are not retailers, and are taxed under Section 8A-455.
Paper (and similar products, such as plastic or styrofoam) cups, lids,
plates, bags, napkins, straws, knives, forks, etc., sold to restaurants and
others taxable under Section 8A-455 are taxable to the purchaser at the
time of purchase as products consumed by the business,
(e) Charges for returnable containers, where the charges are imposed on
the customer, are subject to tax at the time of the transaction. A
credit may be taken for the amount of refund after such refund is
made.
(f) The sale of labels to a purchaser who affixes them to a primary
container is a sale for resale and not taxable. Directional or
instructional material included with products sold are considered to be
part of the product and a sale for resale. However, the sale of items
such as price tags, shipping tags, and advertising matter delivered to
the customer in connection with the retail sale is taxable to the retailer
as a retail sale to it, and is not exempt as a sale for resale.
Reg. SA-465.4. (Reserved)
Reg. 8A-470.1. Telecommunication services.
(a) Gross income from the business activity of providing
telecommunication services to consumers within this City shall not
include:
(1) charges for installation, maintenance, and repair of
telecommunication equipment which are subject to the provisions
of Sections 8A-415, SA-416, or 8A-417 (construction contracting);
8A-445 (real property rental); 8A-450 (tangible personal property
rental); or 8A-460 (retail sales); depending upon the nature of the
work performed.
(2) separately billed advertising charges which are subject to the
provisions of Section 8A-405 or 8A-435.
(b) Mobile equipment. In cases where the customer is being provided
telecommunication services to , receiving/transmission equipment
designed to be mobile in nature (for example, .mobile telephones,
portable"hand-held two-way radios, paging devices, etc.), the provider
shall, for the purposes of .the tax imposed by this Section, determine
whether such provider's customers are "within this City" as follows:
(1) by the billing address of the customer, provided that such address
is a permanent residence or business location of the consumer
within the State,
(2) in all other cases, the business location of the telecommunications
provider.
Reg. 8A-475.1. Distinction between transporting for hire and certain related
activities.
The hiring of mobile equipment (cranes, airplanes, limousines, etc.) is deemed
rental, leasing, or licensing for use of tangible personal property whenever the
charge is for a fixed sum or hourly rate. By comparison, the activity of a common
carrier conveying goods or persons for a fee based upon distance, and not time,
1 shall be considered transporting for hire.
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Reg. 8A-52Q.1. (Reserved)
Reg. 8A-520.2. Change of method of reporting.
(a) Any taxpayer electing to change his reporting method shall be
permitted to do so only upon filing a written request to the Tax
Collector and after receiving written approval of the Tax Collector.
The approval shall state the effective date of the change,
(b) The Tax Collector may postpone such approval to allow for examination
of the records of the taxpayer and may further require that all tax
liability be satisfied up to the effective date of the change.
(c) Failure of the taxpayer to notify the Tax Collector and await approval
before changing the method of reporting will subject the taxpayer to
interest and penalties if his original method of reporting would produce
higher taxes due the City. When a person makes such change without
the consent of the Tax Collector, the Tax Collector may audit his books
and records to verify the tax liability as of the date of the change.
(d) Any taxpayer who has failed to indicate a choice of reporting method
upon the application for a Privilege License shall be deemed to have
chosen the accrual method of reporting.
Reg. 8A-555.1. (Reserved)
Reg. 8A-571.1. Collection of tax in jeopardy.
Evidence that collection of tax due is in jeopardy shall include documentation that:
(a) the taxpayer is going out of business.
(b) the taxpayer has no City Privilege License or has no permanent business
location in the State.
(c) the taxpayer has failed to timely pay any tax (or penalties and interest
thereon) due to the City on three (3) or more occasions within the
previous thirty-six (36) calendar months.
(d) the taxpayer has remitted payment by check, which has been
dishonored.
(e) the taxpayer has failed to comply with a formal written request of the
Tax Collector made pursuant to Regulation 8A-555.I.
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CITY COUNCIL MEETING ROLL CALL Date: (si `o? OZ Lo
Regular Work"--T
S: E:-7: S:17;OId E: X(I
CITY COUNCIL: Present Ab/excu Present Ab/excu
MAYOR WILSON
VICE MAYOR SCHROEDER
COUNCILMEMBER CROSS
COUNCILMEMBER HECK
COUNCILMEMBER JOHNSON
COUNCILMEMBER NESSER
COUNCILMEMBER SOLLER
TOTAL
CITY STAFF: esent Ab/excu Additional City Staff:
City Manager Bryant Powell ✓ ; ,/ tv.7 _jQ. .( ��c/�
Assistant City Manager Matt Busby ✓ ✓
Econ Director Ryan Kaup
Mrkt Comm Director Kayla Fulmer fit. 7—
Management Analyst Rob Wisler ✓ ✓
City Clerk Evie McKinney fi' V
Deputy City Clerk Amy Greening
City Attorney Joel Stern ✓ ✓
Public Safety Director Michael Pooley V ✓
Public Safety Assistant Johnny John
Dev Services Director Rudy Esquivias V
Dev Sery Deputy Dir Sidney Urias
Building Safety Mgr Adrian Alegria
IT Director Doug Wirthgen
Planner Erica Hernandez
Planner Nick Leftwich
PW/Water Director Mike Loggins
City Engineer Emile Schmid Invocation: (i
PW Project Engineer Raquel Schatz I Pledge: N`e 5 5 Pam`
Municipal Judge Thomas McDermott
Finance Director Angelie Hawley
Library Director Pam Harrison
Park& Rec Director Liz Langenbach f
HR Director Anna McCray
i empia es cK ror ms\City Councii\Roll Call - City Council - Attendance - Work Session and Regular