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AGENDA
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
OCTOBER 19, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
The Town has modified its public comment procedures in the newly renovated town council chambers. For more
details, please see the instructions for in person and/or virtual speakers at the end of the agenda.
To watch and/or listen to the public meeting online, please visit
https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas
Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive
Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the
Agenda.
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
UPCOMING MEETING ANNOUNCEMENTS
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
Spotlight on Youth
TOWN MANAGER'S REPORT ON CURRENT EVENTS
ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING
INFORMATIONAL ITEMS
CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council
on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council
Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to
criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters
raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to
discuss when completing the blue speaker card.
PRESENTATIONS
1.Presentation and update by Amphitheater School District Superintendent Todd Jaeger, J.D.
2.Presentation and possible discussion of the Town's FY 22/23 Financial Update through August 2022
CONSENT AGENDA
CONSENT AGENDA
(Consideration and/or possible action)
A.Minutes - September 28 and October 5, 2022
B.Resolution No. (R)22-44, authorizing and approving the Oro Valley Police Department (OVPD) to enter
into a program funded state and local task force agreement with the Drug Enforcement Administration
(DEA) for the participation of one (1) Oro Valley Police Officer in the Tucson Task Force and authorizing
the Chief of Police to sign that agreement on behalf of OVPD; and directing the Town Manager, Town
Clerk, Town Legal Services Director, or their duly authorized officers and agents to take all steps
necessary to carry out the purposes and intent of this resolution
C.Resolution No. (R)22-45, authorizing and approving the Oro Valley Police Department (OVPD) to enter
into a state and local High Intensity Drug Trafficking Area (HIDTA) Task Force Agreement with the Drug
Enforcement Administration (DEA) for the participation of one (1) OVPD officer in the Tucson Task Force
and authorizing the Chief of Police to sign that agreement on behalf of OVPD; and directing the Town
Manager, Town Clerk, and Town Legal Services Director, or their duly authorized officers and agents to
take all steps necessary to carry out the purposes and intent of this resolution
REGULAR AGENDA
1.RESOLUTION NO. (R)22-46, AUTHORIZING THE TOWN MANAGER TO NEGOTIATE AND ACQUIRE
THE NECESSARY PROPERTY RIGHTS FROM THE APPLICABLE PROPERTY OWNERS TO
COMPLETE THE GREENOCK TRAIL, AS PREVIOUSLY DIRECTED BY TOWN COUNCIL RELATING
TO THE PARKS BOND PROJECT, THAT INCLUDES PORTIONS OF PROPERTIES 224-28-1440,
224-28-1450, 224-28-1490, 224-35-0860, 224-35-0870, 224-33-5770 & 224-33-5760
2.RESOLUTION NO. (R)22-47, ESTABLISHING THE ORO VALLEY HEALTH CARE BENEFITS TRUST
FOR THE TOWN SELF-INSURANCE PROGRAM
FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may
not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)
ADJOURNMENT
The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.
POSTED: 10/12/22 at 5:00 p.m. by dt
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs
any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at
229-4700.
PUBLIC COMMENT ON AGENDA ITEMS
The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual
comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings,
provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue
speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written
comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the
Town Council prior to the meeting. Further instructions to speakers are noted below.
INSTRUCTIONS TO IN-PERSON SPEAKERS
Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when
attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the
discretion of the Mayor.
If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located
on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue speaker card
which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify
what you wish to discuss.
Please step forward to the podium when the Mayor calls on you to address the Council.
1. For the record, please state your name and whether or not you are a Town resident.
2. Speak only on the issue currently being discussed by Council. You will only be allowed to
address the Council one time regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During Call to Audience, you may address the Council on any matter that is not on the agenda.
5. Any member of the public speaking must speak in a courteous and respectful manner to those
present.
INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS
Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is
listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please
complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours
prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email
you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your
microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote
participation will be included in the email.
Thank you for your cooperation.
Town Council Regular Session 1.
Meeting Date:10/19/2022
Presentation by Todd Jaeger, J.D.
Subject
Presentation and update by Amphitheater School District Superintendent Todd Jaeger, J.D.
Summary
Attachments
No file(s) attached.
Town Council Regular Session 2.
Meeting Date:10/19/2022
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE THROUGH
AUGUST 2022
Subject
Presentation and possible discussion of the Town's FY 22/23 Financial Update through August 2022
Summary
Please reference the attachments for this agenda item.
Attachments
Council Memo - August 2022 Financial Update
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C-1 - Community Center Fund
Attachment C-2 Golf Contractor P&L
Attachment D - Summary All Funds
Attachment E - Gen Fund Local Sales Tax
Attachment F - Gen Fund State Shared Revenues
Staff Presentation
Town Manager’s Office
TOWN COUNCIL REPORT
DATE: October 19, 2022
TO: Mayor and Council
THRU: Chris Cornelison, Acting Town Manager
FROM: David Gephart, Chief Financial Officer
SUBJECT: August 2022 Financial Update
This financial update is intended to provide an overview and status of revenues and expenditures for the
Town’s selected funds through August 2022 for fiscal year 2022/23. Funds included in this financial update
are the General Fund, Highway Fund and Community Center Fund. All amounts are preliminary, un-
audited and subject to change. Estimates reflected in monthly financial updates may not include
adjusting audit entries required at year-end.
EXECUTIVE SUMMARY:
Revenues are performing well compared to budget, and expenditures are trending as expected. Only a
few variances are noted at this time, which are discussed below. Further details on revenues and
expenditures are as follows.
General Fund
General Fund revenues and expenditures are trending as expected through August (see attachment A).
Revenues total $7.8 million or 15.4% of budget, while expenditures are at $7.8 million or 12.1% of the total
budget.
Highway Fund
Highway Fund revenues and expenditures are trending as expected through August (see attachment B).
Revenues total $674,956 or 16.2% of budget, while expenditures total $278,098 or 6.0% of budget.
Community Center Fund
Revenues and expenditures for the Community Center Fund are trending as expected through August
(see attachment C-1 & C-2). Revenues total $1.1 million or 12.9% of budget, while expenditures total $3.1
million or 23.2% of budget.
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through August, as well as year-end
estimates for each category. The estimated year-end projections in the General Fund, which include no
variation from the adopted budget at this time, are as follows:
Revenues: $50,738,991
Less:
Expenditures: ($48,073,483)
Other Financing Uses ($16,446,977)
Preliminary Estimated Decrease in Fund Balance: ($13,781,469)*
*The estimated decrease in fund balance is primarily due a budgeted transfer of $13.5 million of fund
balance to the Capital Fund for CIP projects.
General Fund Revenues
• Local sales tax collections in the General Fund total $4.3 million or 17.0% of the budgeted amount
of $25.3 million and are performing as anticipated. Retail collections total $1.4 million, which is
$73,418 or 5.5% higher than the same time period last fiscal year. Both restaurant/bar collections
and bed tax collections are up 11.2% and 11.0% respectively, compared to the same time period
last fiscal year. Construction sales tax collections total $1.2 million through August, which is
$301,187 or 35.0% higher than collections from the same time period last fiscal year primarily
driven by higher commercial building activity. Total local sales tax revenue in the General Fund is
not expected to deviate from the budget at this time. Please see attachment E for detailed
information on General Fund local sales tax collections.
• License and permit revenues total $219,227 or 9.9% of the budget amount of $2.2 million. Single
Family Residential (SFR) permits issued through August total 27 and are a large portion of this
revenue piece. This revenue category is expected to come in on budget at this time.
• State shared revenues total $2.6 million or 14.7% of the budget amount of $17.6 million. These
revenue sources are comprised of state shared sales taxes, state shared income taxes, auto-lieu
fees, and Smart and Safe shared taxes. At this point in time, these revenues are forecasted to
come in on budget.
• Charges for services revenues total $491,479 or 16.1% of the budget amount of $3.0 million. Cost
allocation charges to the Town’s enterprise funds for services provided, as well as Parks &
Recreation fees, make up the bulk of this revenue category. Charges for services are forecasted
to come in on budget at this time.
• Please note that interest income is negative due to a realized loss in July. Staff will continue to
monitor these revenues closely. Realized gains throughout the remainder of the fiscal year may
make up for this loss. Please note that due to regular volatility, unrealized gains and losses are not
included in year-end estimates or recorded in the monthly financials until year-end.
General Fund Expenditures
• General Fund expenditures total $7.8 million or 12.1% of budget through August.
• Please note that our auditors have changed course and directed us to reclassify the $885,000
settlement payment for the Vistoso Trails Nature Preserve from FY 21/22 to FY 22/23, which was
Town staff’s original position on the matter. They stated this was due to the Town taking possession
of the asset after June 30, 2022. While this payment was not budgeted for, staff is not adjusting
year-end estimates at this time. Strong revenue performance, combined with other areas of
expenditure savings, may be able to make up for the payment. Staff will continue to closely monitor
this and keep Council apprised.
• Transfers out of the General Fund are expected to end the fiscal year on budget. Note that actuals
through August reflect the budgeted transfer to debt service.
The General Fund is expected to end the fiscal year with a total fund balance of $16.6 million, or 34.5% of
budgeted expenditures still exceeding Council policy by 9.5% despite the increased budgeted transfers
out of the fund.
HIGHWAY FUND
Highway Fund Revenues
• State shared highway user funds total $662,735 or 16.1% of the budget amount of $4.1 million.
These revenues are projected to come in on budget at this time. Other minor revenue sources in
the Highway Fund are expected to come in at a favorable budget variance of $4,000 or 0.1% due
to a vendor refund of prior year invoice credits that was owed to the Town.
Highway Fund Expenditures
• Highway Fund expenditures though August are at $278,098 or 6.0% of the adopted budget of $4.7
million. Capital projects and spending, including that for the pavement preservation program, are
planned to begin in earnest in October. Highway Fund expenditures are projected to come in on
budget at this time.
The Highway Fund is expected to end the fiscal year with a fund balance of $721,897.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues
and expenditures from contracted and Town-managed operations.
Attachment C-2 shows the monthly line-item detail for the contractor-managed operations, specifically
revenues and expenditures associated with golf, food and beverage operations. The totals in the revenue
and expenditure categories in attachment C-2 tie to the contracted operating revenues and expenditures
in attachment C-1.
Community Center Fund Revenues
• Revenues in the Community Center Fund through August total $1.1 million or 12.9% of the budget
amount of $8.5 million.
• Contracted operating revenues total $473,828 through August. This is approximately $31,000 or
6.1% less than revenues from the same time period last fiscal year. At this time, contracted
revenues are estimated to be on budget. Contractor revenues are expected to be less than the
prior year due to planned course closures for the irrigation project.
• Town operating revenues for August are $121,791 or 13.7% of the budget amount of $887,800.
Town operating revenues are expected to end the fiscal year on budget at this time.
• Local sales tax revenues for August total $542,786 or 15.6% of the budget amount of $3.5 million.
These collections are currently projected to come in on budget.
Community Center Fund Expenditures
• Expenditures in the Community Center Fund total $3.1 million or 23.2% of the budgeted amount
of $13.2 million.
• Contracted operating expenditures total $635,043, or 13.4% of the budgeted amount of $4.7 million.
Contracted expenditures are currently estimated to come in on budget.
• Transfers out are expected to end the year about $200,000, or 4.8% higher than budget due to the
Council directive to transfer all fund balance in excess of $1 million to the Capital Fund to be used
for the golf irrigation project. Note that actuals through August reflect the budgeted transfer out to
debt service.
• At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance
of $1 million.
The year-end sales tax support for golf operations is estimated to be $464,419. This figure includes a
budgeted $743,469 loss for contracted golf operations, offset by $159,050 in outside HOA contributions
and approximately $120,000 in local sales taxes generated from golf related operations.
Please see attachments A and B for additional details on the General Fund and Highway Fund. See
attachments C-1 and C-2 for additional details on the Community Center Fund. See attachment D for a
fiscal year-to-date consolidated summary of all Town Funds. See attachment E and F for a breakdown of
monthly local sales tax collections and state shared revenue collections for the General Fund.
ATTACHMENT A
August YTD Financial Status
General Fund
% Budget Completion through August --- 16.7%
% Actuals YE % Variance
to Budget to Budget
REVENUES `
LOCAL SALES TAX 4,300,092 25,270,959 17.0% 25,270,959 0.0%
LICENSES & PERMITS 219,227 2,223,824 9.9% 2,223,824 0.0%
FEDERAL GRANTS 32,871 380,000 8.7% 380,000 0.0%
STATE GRANTS 13,340 75,000 17.8% 75,000 0.0%
STATE/COUNTY SHARED 2,583,864 17,605,693 14.7% 17,605,693 0.0%
OTHER INTERGOVERNMENTAL 7,501 1,613,000 0.5% 1,613,000 0.0%
CHARGES FOR SERVICES 491,479 3,046,515 16.1% 3,046,515 0.0%
FINES 18,041 125,000 14.4% 125,000 0.0%
INTEREST INCOME (196,754) 150,000 -131.2% 150,000 0.0%
MISCELLANEOUS 331,064 249,000 133.0%249,000 0.0%
TOTAL REVENUES 7,800,725 50,738,991 15.4% 50,738,991 0.0%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CLERK 44,468 422,705 10.5% 422,705 0.0%
COMMUNITY & ECON. DEV. 341,653 3,280,764 10.4% 3,280,764 0.0%
COUNCIL 74,702 199,145 37.5% 199,145 0.0%
FINANCE 134,620 1,111,460 12.1% 1,111,460 0.0%
GENERAL ADMINISTRATION 1,077,236 4,077,234 26.4% 4,077,234 0.0%
HUMAN RESOURCES 68,585 569,905 12.0% 569,905 0.0%
INNOVATION & TECHNOLOGY 638,482 4,797,809 13.3% 4,797,809 0.0%
LEGAL 112,388 1,015,753 11.1% 1,015,753 0.0%
MANAGER 117,870 1,160,173 10.2% 1,160,173 0.0%
PARKS & RECREATION 491,810 3,775,162 13.0% 3,775,162 0.0%
POLICE 1,969,267 20,403,472 9.7% 20,403,472 0.0%
PUBLIC WORKS 585,118 6,200,227 9.4% 6,200,227 0.0%
TOWN COURT 96,156 1,059,674 9.1% 1,059,674 0.0%
TRANSFERS OUT 2,048,965 16,446,977 12.5%16,446,977 0.0%
TOTAL EXPENDITURES 7,801,320 64,520,460 12.1% 64,520,460 0.0%
CHANGE IN FUND BALANCE (595) (13,781,469) (13,781,469)
BEGINNING FUND BALANCE 30,390,425
Plus: Surplus / (Use of Fund Balance)(13,781,469)
ENDING FUND BALANCE **16,608,956
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2022/2023
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 8/2022
Actuals
thru 8/2022
Budget
ATTACHMENT B
August YTD Financial Status FY 2022/2023
% Budget Completion through August --- 16.7%
Actuals
thru 8/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
REVENUES -
LICENSES & PERMITS 5,686 25,000 22.7% 25,000 0.0%
STATE/COUNTY SHARED 662,735 4,127,100 16.1% 4,127,100 0.0%
INTEREST INCOME 633 8,000 7.9% 8,000 0.0%
MISCELLANEOUS 5,902 3,000 196.7%7,000 133.3%
TOTAL REVENUES 674,956 4,163,100 16.2% 4,167,100 0.1%
Actuals
thru 8/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES
TRANSPORTATION ENGINEERING 149,185 4,192,089 3.6% 4,192,089 0.0%
STREET MAINTENANCE 128,913 460,100 28.0%460,100 0.0%
TOTAL EXPENDITURES 278,098 4,652,189 6.0% 4,652,189 0.0%
CHANGE IN FUND BALANCE 396,858 (489,089) (485,089)
BEGINNING FUND BALANCE 1,206,986
Plus: Surplus / (Use of Fund Balance) (485,089)
ENDING FUND BALANCE ** 721,897
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
Highway Fund
ATTACHMENT C-1
August YTD Financial Status
% Budget Completion through August --- 16.7%
% Actuals YE % Variance
to Budget to Budget
REVENUES
CONTRACTED OPERATING REVENUES
Golf Revenues, Trail and Cart Fees 172,102 2,060,519 8.4% 2,060,519 0.0%
Member Dues 193,819 1,102,500 17.6% 1,102,500 0.0%
Food & Beverage 78,472 546,350 14.4% 546,350 0.0%
Merchandise & Other 29,435 270,780 10.9%270,780 0.0%
473,828 3,980,149 11.9% 3,980,149 0.0%
TOWN OPERATING REVENUES
Daily Drop-Ins 5,082 30,000 16.9% 30,000 0.0%
Member Dues 91,106 620,500 14.7% 620,500 0.0%
Recreation Programs 15,379 170,000 9.0% 170,000 0.0%
Facility Rental Income 10,224 67,300 15.2%67,300 0.0%
121,791 887,800 13.7% 887,800 0.0%
OTHER REVENUES
Local Sales Tax 542,786 3,477,236 15.6% 3,477,236 0.0%
Interest Income (43,569) 3,000 -1452.3% 3,000 0.0%
Miscellaneous 15 159,150 0.0%159,150 0.0%
499,232 3,639,386 13.7% 3,639,386 0.0%
TOTAL REVENUES 1,094,851 8,507,335 12.9% 8,507,335 0.0%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CONTRACTED OPERATING EXPENDITURES
Personnel 230,634 1,728,134 13.3% 1,728,134 0.0%
Food & Beverage 75,837 487,863 15.5% 487,863 0.0%
Operations & Maintenance 312,662 2,344,939 13.3% 2,344,939 0.0%
Equipment Leases 15,910 162,682 9.8%162,682 0.0%
635,043 4,723,618 13.4% 4,723,618 0.0%
TOWN OPERATING EXPENDITURES
Personnel 152,887 920,274 16.6% 920,274 0.0%
Operations & Maintenance 60,634 775,299 7.8%775,299 0.0%
213,521 1,695,573 12.6% 1,695,573 0.0%
CAPITAL OUTLAY 177,845 2,666,700 6.7% 2,666,700 0.0%
TRANSFERS OUT 2,028,066 4,085,380 49.6% 4,281,901 4.8%
TOTAL EXPENDITURES 3,054,475 13,171,271 23.2% 13,367,792 1.5%
CHANGE IN FUND BALANCE (1,959,624) (4,663,936) (4,860,457)
BEGINNING FUND BALANCE 5,860,458
Plus: Surplus / (Use of Fund Balance)(4,860,457)
ENDING FUND BALANCE **1,000,000
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2022/2023
Actuals
thru 8/2022 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 8/2022 Budget Year End
Estimate *
ATTACHMENT C-2
Budget Last Year Budget Last Year
Actual Budget Variance Last Year Variance Actual Budget Variance Last Year Variance
Rounds
2,643 1,600 1,043 1,922 721 Rounds ‐ Member 5,121 3,200 1,921 3,702 1,419
192 150 42 345 (153)Rounds ‐ Outing 415 300 115 639 (224)
2,272 900 1,372 3,311 (1,039)Rounds ‐ Public 4,371 1,800 2,571 6,305 (1,934)
====================================================================================== ==================================================================================
5,107 2,650 2,457 5,578 (471)Total Rounds 9,907 5,300 4,607 10,646 (739)
Revenue
62,715 22,000 40,715 89,982 (27,267)Green Fees 122,902 44,000 78,902 170,733 (47,831)
23,329 21,050 2,279 21,710 1,619 Cart Fees 46,503 42,100 4,403 43,308 3,194
1,586 1,250 336 2,257 (671)Driving Range 2,697 2,750 (53)5,611 (2,913)
00000Golf Cards/Passes 0 0 0 0 0
9,900 9,850 50 11,756 (1,856)Pro Shop Sales 22,019 20,000 2,019 24,061 (2,041)
19,582 15,350 4,232 16,714 2,868 Food (Food & Soft Drinks) 44,774 36,950 7,824 40,100 4,674
16,919 16,760 159 18,624 (1,706)Beverages (Alcohol) 32,554 30,720 1,834 34,647 (2,093)
56 100 (44)111 (56)Other Food & Beverage Revenue 1,144 265 879 275 869
1,016 755 261 960 56 Other Golf Revenues (Club Rent, Handicap 2,262 1,525 737 1,959 302
1,300 750 550 935 365 Clinic / School Revenue 2,946 2,000 946 2,630 316
97,110 88,500 8,610 88,473 8,638 Dues Income ‐ Monthly Dues 193,819 177,000 16,819 177,034 16,784
1,025 100 925 484 541 Miscellaneous Income and Discounts 2,208 200 2,008 701 1,507
==================================================================================== ===============================================================================
234,538 176,465 58,073 252,008 (17,470)Total Revenue 473,828 357,510 116,318 501,060 (27,232)
Cost of Sales
12,521 6,895 (5,626)9,563 (2,958)COGS ‐ Pro Shop 20,622 14,000 (6,622)16,571 (4,052)
6,114 4,241 (1,873)3,698 (2,416)COGS ‐ Food 14,238 10,445 (3,793)10,501 (3,737)
1,251 800 (451)968 (283)COGS ‐ Non‐Alcoholic Beverages 1,593 1,696 103 2,019 426
4,421 5,093 672 6,122 1,701 COGS ‐ Alcohol 8,963 9,340 377 10,855 1,891
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
24,307 17,029 (7,278)20,351 (3,956)Total Cost of Sales 45,416 35,481 (9,936)39,946 (5,470)
==================================================================================== ===============================================================================
210,232 159,436 50,795 231,657 (21,426)GROSS INCOME 428,411 322,029 106,382 461,113 (32,702)
Labor
31,609 25,267 (6,342)23,742 (7,868)Golf Operation Labor 56,720 50,534 (6,186)45,516 (11,204)
10,085 9,250 (835)9,174 (911)General and Administrative 19,844 18,500 (1,344)18,411 (1,433)
50,931 67,620 16,689 53,001 2,070 Maintenance and Landscaping 109,165 135,439 26,275 111,548 2,384
18,211 18,106 (105)19,044 832 F&B 36,874 36,212 (662)36,730 (144)
5,957 5,917 (40)5,215 (742)Sales and Marketing 11,560 11,233 (327)10,130 (1,430)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
116,794 126,159 9,365 110,176 (6,619)Total Direct Labor 234,163 251,918 17,755 222,335 (11,828)
8,301 11,571 3,270 8,608 307 Total Payroll Taxes 17,469 23,106 5,637 17,409 (61)
9,844 10,691 847 9,661 (183)Total Medical/Health Benefits 20,307 21,311 1,004 19,252 (1,055)
2,103 1,346 (757)1,640 (464)Total Workmans Comp 3,758 3,499 (259)4,215 457
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
20,248 23,608 3,360 19,909 (340)Total Payroll Burden 41,535 47,916 6,381 40,876 (659)
==================================================================================== ===============================================================================
137,043 149,767 12,725 130,084 (6,958)Total Labor 275,698 299,835 24,137 263,212 (12,486)
Other Operational Expenses
2,600 2,717 117 6,560 3,960 Golf Ops 4,390 4,659 269 13,082 8,692
11,206 7,259 (3,947)10,255 (951)G&A 19,326 16,232 (3,094)19,127 (200)
30,303 44,073 13,770 41,848 11,545 Maintenance 50,112 93,766 43,654 68,478 18,366
3,454 2,230 (1,224)2,397 (1,057)F&B 5,979 4,535 (1,444)4,624 (1,356)
1,467 900 (567)1,081 (387)Sales and Marketing 4,130 3,050 (1,080)4,306 176
13,557 13,557 0 13,041 1,837 Golf Cart Leases 15,910 27,114 11,204 26,082 10,172
00(0)0 (0)Equipment Leases 0 0 (0)0 (0)
63,230 98,750 35,520 71,825 8,595 Utilities ‐ Maintenance 143,379 199,125 55,746 160,952 17,573
16,278 15,800 (478)15,936 (341)Utilities ‐ G&A 33,178 32,125 (1,053)32,518 (660)
10,404 10,404 0 10,200 (204)Management Fees 20,808 20,808 0 20,400 (408)
6,668 3,838 (2,830)3,838 (2,830)Insurance ‐ P&C 16,715 7,684 (9,031)7,684 (9,031)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
159,167 199,528 40,361 176,981 20,168 Total Other Operational Expenses 313,928 409,098 95,170 357,252 43,324
==================================================================================== ===============================================================================
296,210 349,295 53,086 307,066 13,209 Total Expenses 589,626 708,933 119,306 620,464 30,837
==================================================================================== ===============================================================================
(85,978) (189,859)103,881 (75,408) (8,216)EBITDAR (161,215) (386,904)225,688 (159,350) (1,865)
==================================================================================== ===============================================================================
(85,978) (189,859)103,881 (75,408) (8,216)EBITDA (161,215) (386,904)225,688 (159,350) (1,865)
Interest Expense/Dep&Amt
00000Other Expense 0 0 0 (343) (343)
0 0 0 0 0 Capital Improvements/Cap Reserve 0 0 0 10,560 10,560
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
00000Total Interest Expense 0 0 0 10,217 10,217
==================================================================================== ===============================================================================
(85,978) (189,859)103,881 (75,408) (8,216)Net Income (161,215) (386,904)225,688 (169,567)8,352
El Conquistador Golf Club
For the Month Ending August 31st, 2022
August YTD
ATTACHMENT DConsolidated Year-to-Date Financial Report through August 2022FY 2022/2023FundFY 22/23Beginning BalanceRevenueOther Fin Sources/TransfersTotal In Personnel O&M CapitalDebt ServiceCapital Leases /Transfer OutTotal OutFund Balance Through August 2022General Fund 30,390,425 7,800,725 7,800,725 3,469,795 2,237,319 45,241 2,048,965 7,801,320 30,389,830 Highway Fund 1,206,986 674,956 674,956 128,103 149,995 278,098 1,603,844 Grants and Contributions Fund 208,250 5,391,425 5,391,425 13,564 13,564 5,586,111 Seizure & Forfeiture - Justice/State 237,863 2,465 2,465 26,425 26,425 213,903 Community Center Fund 5,860,458 1,094,851 1,094,851 383,521 449,133 177,845 2,043,976 3,054,475 3,900,834 Municipal Debt Service Fund 164,136 31,176 4,200,971 4,232,147 3,894 3,633,719 3,637,613 758,670 Water Resource System & Dev. Impact Fee Fund 17,544,433 168,590 168,590 46,154 333,327 379,481 17,333,542 Townwide Roadway Dev Impact Fee Fund 1,939,688 7,327 7,327 - 1,947,015 Parks & Recreation Impact Fee Fund 509,474 24,585 24,585 - 534,059 Police Impact Fee Fund 132,559 7,119 7,119 121,500 121,500 18,178 Capital Fund 24,110,390 154,806 154,806 15,238 2,200,528 2,215,766 22,049,430 PAG/RTA Fund 873,366 (1,452) (1,452) 650 6,533 7,183 864,731 Water Utility 12,628,510 3,148,843 3,148,843 388,101 1,258,467 142,071 4,229,099 2,440 6,020,178 9,757,175 Stormwater Utility 1,125,140 256,837 256,837 96,405 52,192 148,597 1,233,380 Benefit Self Insurance Fund 2,869,952 512,737 512,737 602,406 602,406 2,780,283 Recreation In-Lieu Fee Fund 16,617 (125) (125) - 16,492 Total 99,818,247 19,274,865 4,200,971 23,475,836 4,481,163 4,840,199 2,572,218 8,196,145 4,216,881 24,306,606 98,987,477
ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2022/23CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax586,039 575,738 1,161,777 Utility Sales Tax317,210 371,973 689,183 Retail Sales Tax716,720 680,117 1,396,837 Bed Tax146,263 128,132 274,395 Restaurant & Bar Sales Tax186,438 186,438 372,875 All Other Local Sales Tax *210,893 194,132 405,025 Monthly Total 2,163,563$ 2,136,529$ 4,300,092$ Cumulative Total 2,163,563$ 4,300,092$ FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 436,821 829,833 525,234 491,178 601,856 466,142 582,006 6,860,980 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 238,499 253,620 474,092 115,418 252,114 234,820 261,849 3,473,215 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 814,794 1,015,258 701,089 686,381 818,648 793,639 718,525 8,923,255 Bed Tax 130,217 117,012 93,538 108,884 392,162 157,378 205,021 181,927 257,471 321,178 247,836 171,705 2,384,329 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 191,664 226,775 199,622 206,978 233,228 226,654 219,474 2,435,113 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 217,626 274,274 225,090 254,639 285,717 248,743 221,793 2,729,386 Monthly Total 1,922,624$ 1,911,004$ 2,053,282$ 2,406,749$ 2,426,009$ 2,056,782$ 2,804,781$ 2,307,054$ 2,012,065$ 2,512,741$ 2,217,835$ 2,175,352$ 26,806,278$ Cumulative Total 1,922,624$ 3,833,628$ 5,886,910$ 8,293,659$ 10,719,668$ 12,776,451$ 15,581,231$ 17,888,285$ 19,900,350$ 22,413,091$ 24,630,926$ 26,806,278$ * Note: Does not include cable franchise fees or sales tax audit revenues
ATTACHMENT FGeneral Fund State Shared RevenuesFY 2022/23CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 756,893 756,894 1,513,787 State Shared Sales Tax 308,350 462,557 770,907 County Auto Lieu 97,269 201,901 299,170 Smart and Safe- - - Monthly Total 1,162,512$ 1,421,352$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,583,864$ Cumulative Total 1,162,512$ 2,583,864$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 500,637 500,637 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 6,174,404 State Shared Sales Tax 291,674 534,620 464,795 538,626 428,064 680,044 569,532 458,855 555,746 671,412 521,466 922,244 6,637,078 County Auto Lieu 100,364 178,439 214,084 179,539 176,572 183,593 166,138 185,396 187,906 231,739 168,035 298,521 2,270,326 Smart and Safe- - - - - 113,051 - 59 15 - - 122,828 235,953 Monthly Total 892,675$ 1,213,696$ 1,196,192$ 1,235,478$ 1,121,949$ 1,494,001$ 1,252,983$ 1,161,623$ 1,260,980$ 1,420,464$ 1,206,814$ 1,860,906$ 15,317,760$ Cumulative Total 892,675 2,106,371 3,302,563 4,538,040 5,659,989 7,153,990 8,406,973 9,568,596 10,829,576 12,250,040 13,456,854 15,317,760
Fiscal Year 2022/23
Financial Update Through August 2022
October 19, 2022
Overview/Reminders
All amounts are preliminary, unaudited and subject to change
Year -end estimates may not include adjusting audit entries required at year-end
Year -end estimates should not be relied upon as precise predictors of year-end balances;
they are fluid, informational, and based on currently available data
The Town’s financial performance throughout the fiscal year is best indicated by
comparing actuals to the adopted budget
Overall, revenues are performing well compared to budget, and expenditures are trending
as expected
GENERAL FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Local Sales Taxes $ 25,270,959 $ 4,300,092 17.0%$ 25,270,959 Higher than expected growth in contracting sales tax
and restaurant and bar
State Shared Revenues 17,605,693 2,583,864 14.7%17,605,693 Trending as expected
Charges for Services 3,046,515 491,479 16.1%3,046,515 Trending as expected
Licenses & Permits 2,223,824 219,227 9.9%2,223,824 Trending as expected; budget includes permitting for
larger building projects expected later in the year
Grant Revenue 455,000 46,211 10.2%455,000 Trending as expected
All Other 2,137,000 159,852 7.5%2,137,000
Includes other intergovernmental revenue, interest
income and miscellaneous revenue (percentage of
budget reflects realized interest income loss in July)
TOTAL GENERAL FUND
REVENUES $ 50,738,991 $ 7,800,725 15.4%$ 50,738,991 No budget variance projected at this time
GENERAL FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Personnel $ 34,876,210 $ 3,469,795 9.9%$ 34,876,210
Trending as expected; percentage of budget reflects
timing of payrolls as well as pension contributions
pending updated actuarial reports
Operations & Maintenance 11,809,548 2,237,318 18.9%11,809,548 Actuals include $885,000 claim settlement payment
for the Vistoso Trails Nature Preserve
Capital 1,387,725 45,241 3.3%1,387,725
Budget includes Westward Look improvements, IT
needs, and various departmental equipment and
capital needs
Transfers Out 16,446,977 2,048,965 12.5%16,446,977 Actuals reflect the budgeted transfer for debt service
TOTAL GENERAL FUND
EXPENDITURES $ 64,520,460 $ 7,801,320 12.1%$ 64,520,460 No budget variance projected at this time
Budgeted Use of Fund Balance:
($13.8M)
Estimated Use of Fund Balance =
($13.8M)
Estimated Ending Fund
Balance: $16.6M
34.5% of budgeted expenditures
Exceeds Council 25% Policy by
$4.6M
GENERAL FUND
$6.0M
$15.4M
$7.8M $7.8M
$50.7M
$64.5M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
Revenues Expenditures
General Fund
FY 22/23 Through August
PY Actual
CY Actual
CY Budget
HIGHWAY FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Licenses & Permits $ 25,000 $ 5,686 22.7%$ 25,000 Trending higher than expected, year-end estimate may
be revised as fiscal year progresses
State Shared Revenues 4,127,100 662,735 16.1%4,127,100 Trending as expected
All Other 11,000 6,535 59.4%15,000 Favorable budget variance of $4,000 due to a vendor
refund
TOTAL HIGHWAY FUND
REVENUES $ 4,163,100 $ 674,956 16.2%$ 4,167,100 Favorable budget variance of $4,000 or 0.1% due to a
vendor refund
HIGHWAY FUND EXPENDITURES
EXPENDITURE
CATEGORY Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Personnel $ 1,202,574 $ 128,103 10.7%$ 1,202,574 Trending as expected; percentage of budget reflects
timing of payrolls
Operations &
Maintenance 823,615 149,995 18.2%823,615 Trending as expected
Capital 2,619,000 -0.0%2,619,000 Pavement preservation program to begin in October
TOTAL HIGHWAY FUND
EXPENDITURES $ 4,645,189 $ 278,098 6.0%$ 4,645,189 No budget variance projected at this time
Budgeted Use of Fund Balance:
($489,000)
Estimated Use of Fund Balance =
($485,000)
Estimated Ending Fund
Balance: $722,000
HIGHWAY FUND
$.6M
$.3M
$.7M
$.3M
$4.2M
$4.7M
$.0M
$.5M
$1.0M
$1.5M
$2.0M
$2.5M
$3.0M
$3.5M
$4.0M
$4.5M
$5.0M
Revenues Expenditures
Highway Fund
FY 22/23 Through August
PY Actual
CY Actual
CY Budget
COMMUNITY CENTER FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Contracted Operating
Revenues $ 3,980,149 $ 473,828 11.9%$ 3,980,149 Trending as expected
Town Operating Revenues 887,800 121,791 13.7%887,800
Recreation program revenue is seasonal; member
dues slightly below budget and less than prior year
actuals
Other Revenues 3,639,386 499,232 13.7%3,639,386
Includes 1/2 cent sales tax revenues, HOA
contributions, interest income and other
miscellaneous revenues.
TOTAL COMM. CENTER
FUND REVENUES $ 8,507,335 $ 1,094,851 12.9%$ 8,507,335 No budget variance projected at this time
COMMUNITY CENTER FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 8/2022 % of Budget Year -End
Estimate Notes
Contracted Operating
Expenditures $ 4,723,618 $ 635,043 13.4%$ 4,723,618 Trending as expected
Town Operating
Expenditures 1,695,573 213,521 12.6%1,695,573 Trending as expected
Capital Outlay 2,666,700 177,845 6.7%2,666,700 Projected on budget at this time
Transfers Out 4,085,380 2,028,066 49.6%4,281,901
Actuals reflect the budgeted transfer for debt
service; year-end estimate includes transfer out of
all estimated fund balance in excess of $1 million to
Capital Fund for golf irrigation project
TOTAL COMM. CENTER
FUND EXPENDITURES $ 13,171,271 $ 3,054,475 23.2%$ 13,367,792 Budget variance of $196,521 or 1.5% due to
transfer out for golf irrigation project
COMMUNITY CENTER FUND
Budgeted Use of Fund Balance:
($4.7M)
Estimated Use of Fund Balance:
($4.9M)
Estimated Ending Fund
Balance: $1M
$1.3M $1.0M$1.1M
$3.1M
$8.5M
$13.2M
$M
$1M
$2M
$3M
$4M
$5M
$6M
$7M
$8M
$9M
$10M
$11M
$12M
$13M
$14M
Revenues Expenditures
Community Center Fund
FY 22/23 Through August
PY Actual
CY Actual
CY Budget
MONTHLY FINANCIAL UPDATE
QUESTIONS?
Town Council Regular Session A.
Meeting Date:10/19/2022
Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
SUBJECT:
Minutes - September 28 and October 5, 2022
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve (approve with the following changes) the September 28 and October 5, 2022 minutes.
Attachments
9-28-22 Draft Minutes
10-5-22 Draft Minutes
D R A F T
MINUTES
ORO VALLEY TOWN COUNCIL
SPECIAL SESSION
SEPTEMBER 28, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive
Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the
Agenda.
SPECIAL SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield called the meeting to order at 6:00 p.m.
ROLL CALL
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Tim Bohen, Councilmember
Harry Greene, Councilmember
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember
Steve Solomon, Councilmember
SPECIAL SESSION AGENDA
1.FOR DIRECTION TO THE TOWN ATTORNEY, HUMAN RESOURCES DIRECTOR AND ACTING
TOWN MANAGER REGARDING THE PROCESS FOR HIRING A TOWN MANAGER
Discussion ensued amongst Council and staff regarding the process for hiring a Town Manager.
Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to direct staff to hire
an outside firm through the cooperative contract process to review internal and external candidates.
Council will review all qualified resumes. Council will approve the town manager job description for
release to the public. Council directs staff to select the search firm.
Vote: 7 - 0 Carried
ADJOURNMENT
9/28/22 Minutes, Oro Valley Town Council Special Session 1
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to adjourn the
meeting at 6:21 p.m.
Vote: 7 - 0 Carried
_____________________________
Michelle Stine, MMC
Deputy Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the
Town of Oro Valley Council of Oro Valley, Arizona held on the 28th day of September 2022. I further certify that the
meeting was duly called and held and that a quorum was present.
_______________________________________________
Michael Standish, CMC
Town Clerk
9/28/22 Minutes, Oro Valley Town Council Special Session 2
D R A F T
MINUTES
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
OCTOBER 5, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 5:00 PM
CALL TO ORDER
Mayor Winfied called the meeting to order at 5:00 p.m.
ROLL CALL
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Tim Bohen, Councilmember
Harry Greene, Councilmember
Joyce Jones-Ivey, Councilmember (attended via Zoom)
Josh Nicolson, Councilmember
Steve Solomon, Councilmember
EXECUTIVE SESSION - Pursuant to A.R.S. §38-431.03(A)(3) and (A)(4) to discuss the draft economic
development agreement with Oro Valley Lifestyle Center LLC (Town West Realty)
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to go into Executive
Session at 5:01 p.m. pursuant to A.R.S. §38-431.03(A)(3) and (A)(4) to discuss the draft economic
development agreement with Oro Valley Lifestyle Center LLC (Town West Realty)
Vote: 7 - 0 Carried
Mayor Winfield announced that the following staff would be joining Council in Executive Session:
Acting Town Manager Chris Cornelison, Town Attorney Jonathan Rothschild, Legal Services Director
Tobin Sidles, Community & Economic Development Director Paul Melcher, Deputy Town Clerk
Michelle Stine, and Town Clerk Mike Standish.
RESUME REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield resumed the Regular Session at 6:13 p.m.
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 1
ROLL CALL
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice-Mayor
Tim Bohen, Councilmember
Harry Greene, Councilmember
Josh Nicolson, Councilmember
Steve Solomon, Councilmember
Absent: Joyce Jones-Ivey, Councilmember
1.FOR DIRECTION TO THE ACTING TOWN MANAGER AND/OR NECESSARY STAFF AS
DISCUSSED IN EXECUTIVE SESSION REGARDING THE DRAFT ECONOMIC DEVELOPMENT
AGREEMENT WITH ORO VALLEY LIFESTYLE CENTER LLC (TOWN WEST REALTY)
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Tim Bohen to proceed as
directed in Executive Session.
Vote: 6 - 0 Carried
PLEDGE OF ALLEGIANCE
Mayor Winfield led the audience in the Pledge of Allegiance.
UPCOMING MEETING ANNOUNCEMENTS
Town Clerk Mike Standish announced the upcoming Town meetings.
MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS
Councilmember Greene expressed appreciation for the service Mary Jacobs provided and wished her
the best.
TOWN MANAGER'S REPORT ON CURRENT EVENTS
Acting Town Manager Chris Cornelison presented the following information:
The Town's Peak Performance program was named a finalist at the SHRM GT Celebration
Innovation Awards.
Encourage Oro Valley residents to apply for the various board and commission vacancies.
The Town had received 893 responses for the Parks and Recreation senior programming
survey.
ORDER OF BUSINESS
Mayor Winfield reviewed the order of business and stated that the order would stand as posted.
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 2
INFORMATIONAL ITEMS
There were no informational items.
CALL TO AUDIENCE
Oro Valley resident Tim Fagan voiced his concerns regarding the proposed Oro Valley Church of the
Nazarene rezoning request.
Oro Valley resident Darlene Bakken voiced her concerns regarding the proposed Oro Valley Church of
the Nazarene rezoning request.
Oro Valley resident Robin Kool voiced her concerns regarding the proposed Oro Valley Church of the
Nazarene rezoning request.
PRESENTATIONS
There were no presentation items.
CONSENT AGENDA
A.Minutes - September 21, 2022
B.Resolution No. (R)22-40, authorizing and approving a grant contract between the Town of Oro Valley
Police Department and the Governor’s Office of Highway Safety (GOHS) for funding personnel services,
employee related expenses and materials and supplies to enhance DUI Enforcement; and directing the
town manager, town clerk, town legal services director or their duly authorized officers and agents to
take all steps necessary to carry out the purposes and intent of this resolution
C.Resolution No. (R)22-41, authorizing and approving a grant contract between the Town of Oro Valley
Police Department and the Governor's Office of Highway Safety (GOHS) for funding personnel services,
employee related expenses and materials and supplies to enhance the special traffic enforcement
program (STEP); and directing the town manager, town clerk, town legal services director, or their duly
authorized officers and agents to take all steps necessary to carry out the purposes and intent of this
resolution
Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to approve Consent
Agenda items (A) through (C).
Vote: 6 - 0 Carried
Mayor Winfield commented that he appreciated the Police Department pursuing grant funding
opportunities with the idea of improving traffic safety in our community.
REGULAR AGENDA
2.DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED CODE AMENDMENTS TO ALIGN
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 3
2.DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED CODE AMENDMENTS TO ALIGN
AND CLARIFY STANDARDS FOR VARIOUS HOUSING TYPES CURRENTLY PERMITTED IN ORO
VALLEY
A. RESOLUTION NO. (R)22-42, DECLARING THE PROPOSED AMENDMENTS TO THE ORO
VALLEY ZONING CODE RELATED TO MULTI-FAMILY ZONING DISTRICTS AND OTHER RELATED
SECTIONS IN ATTACHMENT 1 AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD
B. PUBLIC HEARING: ORDINANCE NO. (O)22-08, PROPOSED CODE AMENDMENTS TO THE ORO
VALLEY ZONING CODE TO THE MULTI-FAMILY ZONING DISTRICTS, CHAPTER 23, PROVISIONS
FOR RECREATION AREA, CHAPTER 26, DEFINITIONS, CHAPTER 31 AND OTHER RELATED ITEMS
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Steve Solomon to approve
Resolution No. (R)22-42, declaring the proposed amendments to the Oro Valley Zoning Code in
Attachment 1 and as filed with the Town Clerk, a public record
Vote: 5 - 1 Carried
OPPOSED: Councilmember Josh Nicolson
Principal Planner Milini Simms presented item #2B and included the following:
Purpose
Housing in Oro Valley
Proposed Code Amendment
Define housing types - Eliminate overlap and confusion
Define housing types - Definitions include related industry terms
Align existing parking and design standards
Clarify rec/open space standards
Apply R-6 perimeter setbacks with adjacent uses
Clarify application of R-6 internal setbacks
General Plan Compliance
Summary and Recommendation
Mayor Winfield opened the public hearing.
No comments were received.
Mayor Winfield closed the public hearing.
Discussion ensued amongst Council and staff regarding item #2B.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Tim Bohen to continue this item
to a date to be determined in the future, and ask that what comes forward would have no reductions in
open space or setbacks in the R6 zoning district.
Discussion continued amongst Council and staff regarding item #2B.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Tim Bohen to continue this item
to a date to be determined in the future, and ask that what comes forward would have no reductions in
open space or setbacks in the R6 zoning district.
Vote: 6 - 0 Carried
3.DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED CODE AMENDMENTS TO
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 4
3.DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED CODE AMENDMENTS TO
INCREASE EFFICIENCY, CLARITY AND ACHIEVE CONFORMANCE WITH STATE LAW WHILE
MAINTAINING EFFECTIVE PUBLIC PARTICIPATION IN THE DEVELOPMENT REVIEW PROCESS
A. RESOLUTION NO. (R)22-43, DECLARING THE PROPOSED AMENDMENTS TO THE ORO
VALLEY ZONING CODE RELATED TO THE DEVELOPMENT REVIEW PROCESS AND OTHER
RELATED SECTIONS IN ATTACHMENT 1 AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD
B. PUBLIC HEARING: ORDINANCE NO. (O)22-09, PROPOSED CODE AMENDMENTS TO THE ORO
VALLEY ZONING CODE TO THE DEVELOPMENT REVIEW PROCESS, CHAPTER 22 AND OTHER
RELATED SECTIONS
Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to Approve
Resolution No. (R)22-43, declaring the proposed amendments to the Oro Valley Zoning Code in
Attachment 1 and as filed with the Town Clerk, a public record.
Vote: 6 - 0 Carried
Principal Planner Milini Simms presented item #3B and included the following:
Purpose
Key Points
Increase Efficiency: Existing Process
Increase Efficiency: Duplicative reviews
Increase Efficiency: Proposed Process
Increase Efficiency: Time Savings
Reduce confusion by using industry terms
Improve Organization and Address Gaps
Remove outdated processes or conflicts with State law
Maintains effective public participation and OV design standards
General Plan and Strategic Leadership Plan
Summary and Recommendation
Mayor Winfield opened the public hearing.
The following individual spoke in support of item #3B.
President and CEO of the Oro Valley Chamber of Commerce and Oro Valley resident Dave Perry.
Mayor Winfield closed the public hearing.
Discussion ensued amongst Council and staff regarding item #3B.
Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene to approve
Ordinance No. (O)22-09, proposed code amendments to the Oro Valley Zoning Code to the
development review process (Chapter 22) other related sections based on the finding it is in
conformance with the General Plan.
Vice Mayor Barrett requested an amendment to the main motion to add the following language:
Provided changes to the development review process applies only to properties with existing zoning
rights.
Councilmember Solomon and Councilmember Greene accepted the amendment to the main motion.
Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene FINAL
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 5
Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene FINAL
MOTION AS AMENDED: to approve Ordinance No. (O)22-09, proposed code amendments to the Oro
Valley Zoning Code to the development review process (Chapter 22) other related sections based on
the finding it is in conformance with the General Plan, and provided changes to the development review
process applies only to properties with existing zoning rights.
Vote: 5 - 1 Carried
OPPOSED: Councilmember Tim Bohen
Mayor Winfield recessed the meeting at 8:32 p.m.
Mayor Winfield reconvened the meeting at 8:44 p.m.
Councilmember Nicolson left the public meeting and re-joined the meeting via Zoom.
4.PRESENTATION, DISCUSSION AND POSSIBLE DIRECTION REGARDING THE TOWN COUNCIL
BOND PROJECTS, AND THE DESIGN/PUBLIC PARTICIPATION PROCESS FOR BOND-FUNDED
AMENITIES
Public Works Director and Town Engineer Paul Keesler, along with Don McGann of McGann and
Associates, presented item #4. Mr. McGann started the presentation and included the following:
Current Status Overview
Overview
Project Phasing
Construction Highlights
Challenges Encountered
Responses to Challenges
Anticipated Completion Schedule
Design Update - Fields
Design Update - Skate Park
Design Update - Splash Pad
Design Update - Courts
Design Update - Dog Park
Mr. Keesler continued the presentation and included the following:
Golf Irrigation Replacement
Tennis Courts Replacement
Community Center Parking Lot
Multi-Use Paths
Financial Overview of all Bond Projects
Mitigation Plan to Close Shortfall
Naranja Park Expansion Expenditure Detail
Irrigation Replacement Expenditure Detail
Tennis Courts Replacement Expenditure Detail
Community Center Parking Lot Expenditure Detail
Multi-Use Path Expenditure Detail
Bond Projects Financial Discussion
The following individuals spoke regarding item #4
Oro Valley resident Aldie Rose
Oro Valley resident Mark Platt
Discussion ensued amongst Council, staff and Mr. McGann regarding item #4.
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 6
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Josh Nicolson to have staff bring
back a plan with value engineering ideas that are reflected in the comments that have been made this
evening, and update Council through regular Council reports of those ideas.
Discussion continued amongst Council and staff regarding item #4.
Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Josh Nicolson to have staff bring
back a plan with value engineering ideas that are reflected in the comments that have been made this
evening, and update Council through regular Council reports of those ideas.
Vote: 6 - 0 Carried
5.STATUS UPDATE OF COMMUNITY CENTER ADA PROJECTS
Public Works Director and Town Engineer Paul Keesler provided a status update of the Community
Center ADA projects.
Discussion ensued amongst Council and staff regarding item #5.
Staff will provide a report to Council regarding Community Center ADA project options.
FUTURE AGENDA ITEMS
Councilmember Nicolson requested a future agenda item for an update of future annexation plans for
the Ina and Oracle intersection. Seconded by Mayor Winfield.
ADJOURNMENT
Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to adjourn the meeting
at 10:43 p.m.
Vote: 6 - 0 Carried
_______________________________
Michelle Stine, MMC
Deputy Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 5th day of
October 2022. I further certify that the meeting was duly called and held and that a quorum was
present.
__________________________________
Michael Standish, CMC
Town Clerk
10-5-22 Minutes, Oro Valley Town Council Regular Session Minutes 7
Town Council Regular Session B.
Meeting Date:10/19/2022
Requested by: Aaron LeSuer Submitted By:Catherine Hendrix, Police Department
Department:Police Department
SUBJECT:
Resolution No. (R)22-44, authorizing and approving the Oro Valley Police Department (OVPD) to enter into a
program funded state and local task force agreement with the Drug Enforcement Administration (DEA) for the
participation of one (1) Oro Valley Police Officer in the Tucson Task Force and authorizing the Chief of Police to
sign that agreement on behalf of OVPD; and directing the Town Manager, Town Clerk, Town Legal Services
Director, or their duly authorized officers and agents to take all steps necessary to carry out the purposes and intent
of this resolution
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
A request is being made to enter into an agreement with the DEA for the participation of one (1) Oro Valley police
officer in the DEA Tucson Task Force. This is a continuation of the Town's participation in this task force for many
years.
BACKGROUND OR DETAILED INFORMATION:
If approved, this agreement will provide continued participation in these cooperative efforts to disrupt illicit drug
trafficking in the state of Arizona, gather and report intelligence data related to drug trafficking and conduct
undercover operations to allow for effective prosecution.
Additionally, this agreement will enhance our ability to identify, target and investigate consolidated and regional
priority organization targets, as well as target and investigate major drug trafficking and money laundering
organizations.
FISCAL IMPACT:
The related expenses are included in the adopted budget for FY 2022/23.
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)22-44, authorizing the Oro Valley Police Department (OVPD) to
enter into a program funded state and local task force agreement with the Drug Enforcment Administration (DEA)
for the participation of one (1) Oro Valley Police Officer in the Tucson Task Force and authorizing the Chief of
Police to sign that agreement on behalf of OVPD; and directing the Town Manager, Town Clerk, Town Legal
Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the purposes
and intent of this resolution.
Attachments
(R)22-44 DEA Program Funded
Exhibit A - Agreement DEA 2022
Exhibit B - OJP Form 4061 OVPD
RESOLUTION NO. (R)22-44
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF ORO VALLEY, AUTHORIZING THE ORO VALLEY
POLICE DEPARTMENT (OVPD) TO ENTER INTO A PROGRAM
FUNDED STATE AND LOCAL TASK FORCE AGREEMENT
WITH THE DRUG ENFORCEMENT ADMINISTRATION (“DEA”)
FOR THE PARTICIPATION OF ONE (1) ORO VALLEY POLICE
OFFICER IN THE TUCSON TASK FORCE AND AUTHORIZING
THE CHIEF OF POLICE TO SIGN THAT AGREEMENT ON
BEHALF OF OVPD; AND DIRECTING THE TOWN MANAGER,
TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR
THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO
TAKE ALL STEPS NECESSARY TO CARRY OUT TH E
PURPOSES AND INTENT OF THIS RESOLUTION
WHEREAS, pursuant to A.R.S. § 11-952, the Town is authorized to enter into agreements
for joint and cooperative action to include the Agreement, attached hereto as Exhibit “A”,
with the DEA; and
WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police
Department (OVPD), pursuant to A.R.S. § 9-240 (B)(12); and
WHEREAS, the Town wishes to allow OVPD to enter into a Task Force Agreement
with the DEA to assist the DEA in drug trafficking interdiction, gathering and reporting
data relating to narcotics and dangerous drugs and undercover operations related illegal
activity detrimental to the health and general welfare of the residents of the Town and the
State of Arizona; and
WHEREAS, it is in the best interest of the Town to authorize OVPD to enter into the
Program Funded State and Local Task Force Agreement, attached hereto as Exhibit “A”
and incorporated herein by this reference, and to authorize the Police Chief to sign this
agreement and the accompanying, required OJP Form 4061/6, attached hereto as Exhibit
“B”, on behalf of OVPD, in order to set forth the terms and conditions to provide for the
health, safety and welfare of the residents of the Town of Oro Valley and the State of
Arizona.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town
of Oro Valley, that:
SECTION 1. OVPD is authorized to enter into the Program Funded State
and Local Task Force Agreement attached hereto as Exhibit “A” and
incorporated herein by this reference, between the Drug Enforcement
Administration and the Town of Oro Valley for participation of one (1)
Oro Valley Police Officer in the Tucson Task Force.
SECTION 2. The Police Chief is authorized to sign on behalf of OVPD
the Program Funded State and Local Task Force Agreement and the
accompanying, required OJP Form 4061/6, attached hereto as Exhibit “B”.
SECTION 3. The Mayor, Chief of Police and other administrative
officials of the Town of Oro Valley are hereby authorized to take such
steps as necessary to execute and implement the terms of the Agreement.
SECTION 4. The Town Manager, Town Clerk, Town Legal Services
Director, or their duly authorized officers and agents are hereby authorized
and directed to take all steps necessary to carry out the purposes and intent
of this resolution.
SECTION 5. All Oro Valley resolutions or motions and parts of
resolutions or motions of the Council in conflict with the provision of this
Resolution are hereby repealed.
SECTION 6. If any section, subsection, sentence, clause, phrase or
portion of this Resolution or the Program Funded State and Local Task
Force Agreement, attached hereto as Exhibit “A” 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.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 19th day of October 2022.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date: Date:
EXHIBIT “A”
EXHIBIT “B”
FY 2023 DEA Task Force Agreement: Oro Valley Police Department 1 | P a g e
PROGRAM - FUNDED
STATE AND LOCAL TASK FORCE AGREEMENT
This agreement is made this 1st day of October 2022, between the United States Department of
Justice, Drug Enforcement Administration (hereinafter "DEA"), and the Oro Valley Police
Department, ORI#AZ0100700 (hereinafter "parent agency"). The DEA is authorized to enter
into this cooperative agreement concerning the use and abuse of controlled substances under the
provisions of 21 USC § 873.
WHEREAS there is evidence that trafficking in narcotics and dangerous drugs exists in the state
of Arizona area and that such illegal activity has a substantial and detrimental effect on the health
and general welfare of the people of Arizona, the parties hereto agree to the following:
1. The Tucson Task Force will perform the activities and duties described below:
a. disrupt the illicit drug traffic in the Arizona area by immobilizing targeted violators
and trafficking organizations;
b. gather and report intelligence data relating to trafficking in narcotics and dangerous
drugs; and,
c. conduct undercover operations where appropriate and engage in other traditional
methods of investigation in order that the task force’s activities will result in effective
prosecution before the courts of the United States and the state of Arizona.
2. To accomplish the objectives of the Tucson Task Force, the parent agency agrees to
detail one (1) experienced officers to the Tucson Task Force for a period of not less than
two years. During this period of assignment, the parent agency officers will be under the
direct supervision and control of DEA supervisory personnel assigned to the task force.
3. The parent agency officers assigned to the task force shall adhere to DEA policies and
procedures. Failure to adhere to DEA policies and procedures shall be grounds for
dismissal from the task force.
4. The parent agency officers assigned to the task force shall be deputized as task force
officers of DEA pursuant to 21 USC § 878.
5. To accomplish the objectives of the Tucson Task Force, DEA will assign seven (7)
special agents to the task force. The parent agency agrees to provide and maintain a
vehicle for use for each of its assigned task force officers. DEA will also, subject to the
availability of annually appropriated funds or any continuing resolution thereof, provide
necessary funds and equipment to support the activities of the DEA special agents and
parent agency officers assigned to the task force. This support will include: office space,
office supplies, travel funds, funds for the purchase of evidence and information,
investigative equipment, training, and other support items.
FY 2023 DEA Task Force Agreement: Oro Valley Police Department 2 | P a g e
6. During the period of assignment to the Tucson Task Force, the parent agency will remain
responsible for establishing the salary and benefits, including overtime, of the officers
assigned to the task force, and for making all payments due them. DEA will, subject to
availability of funds, reimburse the parent agency for overtime payments. Annual
overtime for each state and local law enforcement officer is capped at the equivalent to
25% of the salary of a GS-12, step 1, of the general pay scale for the rest of the United
States. Reimbursement for all types of qualified expenses shall be contingent upon
availability of funds and submission of a proper request for reimbursement which shall be
submitted monthly or quarterly on a fiscal year basis, and which provides the names of
investigators who incurred overtime for DEA during invoiced period, the number of
overtime hours incurred, the hourly regular and overtime rates in effect for each
investigator, and the total cost for the invoiced period. The parent agency will bill
overtime as it is performed and no later than 60 days after the end of each quarter in
which the overtime is performed. Note: Task Force Officer’s overtime shall not include
any costs for benefits, such as retirement, FICA, and other expenses.
7. In no event will the parent agency charge any indirect cost rate to DEA for the
administration or implementation of this agreement.
8. The parent agency shall maintain on a current basis complete and accurate records and
accounts of all obligations and expenditures of funds under this agreement in accordance
with generally accepted accounting principles and instructions provided by DEA to
facilitate on-site inspection and auditing of such records and accounts.
9. The parent agency shall permit and have readily available for examination and auditing
by DEA, the United States Department of Justice, the Comptroller General of the United
States, and any of their duly authorized agents and representatives, any and all records,
documents, accounts, invoices, receipts or expenditures relating to this agreement. The
parent agency shall maintain all such reports and records until all audits and examinations
are completed and resolved, or for a period of six (6) years after termination of this
agreement, whichever is later.
10. The parent agency shall comply with Title VI of the Civil Rights Act of 1964, Section
504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, as amended,
and all requirements imposed by or pursuant to the regulations of the United States
Department of Justice implementing those laws, 28 C.F.R. Part 42, Subparts C, F, G, H
and I.
11. The parent agency agrees that an authorized officer or employee will execute and return
to DEA the attached OJP Form 4061/6, Certification Regarding Lobbying; Debarment,
Suspension and Other Responsibility Matters; and Drug-Free Workplace Requirements.
The parent agency acknowledges that this agreement will not take effect and no federal
funds will be awarded to the parent agency by DEA until the completed certification is
received.
FY 2023 DEA Task Force Agreement: Oro Valley Police Department 3 | P a g e
12. When issuing statements, press releases, requests for proposals, bid solicitations, and
other documents describing projects or programs funded in whole or in part with federal
money, the parent agency shall clearly state: (1) the percentage of the total cost of the
program or project which will be financed with federal money and (2) the dollar amount
of federal funds for the project or program.
13. The term of this agreement shall be effective from the date in paragraph number one until
September 30, 2026. This agreement may be terminated by either party on 30 days’
advance written notice. DEA’s support to the task force, including reimbursement of
overtime, is subject to the availability of funds on a fiscal year basis (October 1 through
September 30 of the next year). Billing for all outstanding obligations must be received
by DEA within 60 days of the end of the fiscal year or within 60 days of the date of
termination of this agreement. DEA will be responsible only for obligations incurred by
parent agency during the term of this agreement on a fiscal year basis, subject to the
availability of funds.
For the Drug Enforcement Administration:
Cheri A. Oz, Special Agent in Charge Date
Phoenix Field Division
For the Oro Valley Police Department:
Kara M. Riley, Chief of Police Date
U.S. DEPARTMENT OF JUSTICE
OFFICE OF JUSTICE PROGRAMS
OFFICE OF THE COMPTROLLER
CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND
OTHER RESPONSIBILITY MATTERS; AND DRUG-FREE WORKPLACE REQUIREMENTS
Applicants should refer to the regulations cited below to determine the certification to which they are required to
attest. Applicants should also review the instructions for certification included in the regulations before completing this
from. Signature of this form provides for compliance with certification requirements under 28 CFR Part 69, "New
Restrictions on Lobbying" and 28 CFR Part 67, "Government-wide Department and Suspension (Nonprocurement) and
Government-wide Requirements for Drug-Free Workplace (Grants)." The certifications shall be treated as a material
representation of fact upon reliance will be placed when the Department of Justice determines to award the covered transaction, grant, or cooperative agreement.
1. LOBBYING public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
As required by Section 1352, Title 31 of the U.S. Code, and implemented at 28 CFR Part 69, for persons entering into a grant or cooperative agreement over $100,000, as defined at 28 CFR Part 69, the applicant certifies that:
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
(a) No Federal appropriate funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of any Federal grant, the entering into of any cooperative agreement, and extension, continuation, renewal, amendment, or modification of any Federal grant or cooperative agreement;
(d) Have not within a three-year period preceding this application had one or more public transactions (Federal, State, or local) terminated for cause or default; and
B. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application. (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance with its instructions;
3. DRUG-FREE WORKPLACE (GRANTEES OTHER THAN INDIVIDUALS)
As required by the Drug-Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67 Sections 67.615 and 67.620-
(c) The undersigned shall require that the language of this cer - tification be included in the award documents for all subawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all sub- recipients shall certify and disclose accordingly.
A. The applicant certifies that it will or will continue to provide a drug -free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition;
2. DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS (DIRECT RECIPIENT)
(b) Establishing an on -going drug-free awareness program to inform employees about- As required by Executive Order 12549, Debarment and Suspension, and implemented at 28 CFR Prt 67, for prospective participants in primary covered transactions, as defined at 28 CFR Part 67, Section 67.510-
(1) The dangers of drugs abuse in the workplace;
(2) The grantee's policy of maintaining a drug-free workplace;
A. The applicant certifies that it and its principals: (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (a) Are not presently debarred, suspended, proposed for debar - ment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency;
(4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace;
(c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a);
(b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a
(d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will -
OJP FORM 4061/6 (3-91) REPLACES OJP FORMS 4061/2, 4062/3 AND 4061/4 WHICH ARE OBSOLETE.
(1) Abide by the terms of the statement; and DEA Offices
(2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction;
(e) Notifying the agency, in writing, within 10 calendar days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531. Notice shall include the identification number(s) of each affected grant;
Check if there are workplace on file that are not identified here.
Section 67, 630 of the regulations provides that a grantee that is a State may elect to make one certification in each Federal fiscal year. A copy of which should be included with each application for Department of Justice funding. States and State agencies may elect to use OJP Form 4061/7.
(f) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted- Check if the State has elected to complete OJP Form 4061/7.
(1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
DRUG-FREE WORKPLACE (GRANTEES WHO ARE INDIVIDUALS)
(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
As required by the Drug -Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67; Sections 67.615 and 67.620-
A. As a condition of the grant, I certify that I will not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in condition any activity with the grant; and
(g) Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs (a), (b), (c), (d), (e), and (f).
B. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant:
B. If convinced of a criminal drug offense resulting from a violation occurring during the conduct of any grant activity, I will report the conviction, in writing, within 10 calendar days of the conviction, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531.
Place of Performance (Street address, city, country, state, zip code)
As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above certifications.
1. Grantee Name and Address:
Oro Valley Police Department
11000 N. La Canada Drive
Oro Valley, AZ 85737
2. Application Number and/or Project Name 3. Grantee IRS/Vendor Number
4. Typed Name and Title of Authorized Representative
5. Signature 6. Date
Town Council Regular Session C.
Meeting Date:10/19/2022
Requested by: Aaron LeSuer Submitted By:Catherine Hendrix, Police Department
Department:Police Department
SUBJECT:
Resolution No. (R)22-45, authorizing and approving the Oro Valley Police Department (OVPD) to enter into a state
and local High Intensity Drug Trafficking Area (HIDTA) Task Force Agreement with the Drug Enforcement
Administration (DEA) for the participation of one (1) OVPD officer in the Tucson Task Force and authorizing the
Chief of Police to sign that agreement on behalf of OVPD; and directing the Town Manager, Town Clerk, and Town
Legal Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the
purposes and intent of this resolution
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
A request is being made to enter into an agreement with the Drug Enforcement Administration (DEA) for the
participation of one (1) Oro Valley police officer in the DEA Tucson HIDTA Task Force. This agreement is a renewal
of the program with the DEA, as the Town of Oro Valley has successfully participated in this task force for many
years.
BACKGROUND OR DETAILED INFORMATION:
If approved, this agreement will provide continued participation in these cooperative efforts to disrupt illicit drug
trafficking in the state of Arizona, gather and report intelligence data related to drug trafficking and conduct
undercover operations to allow for effective prosecution.
Additionally, this agreement will enhance our ability to identify, target and investigate consolidated and regional
priority organization targets, as well as target and investigate major drug trafficking and money laundering
organizations.
FISCAL IMPACT:
The related expenses are included in the adopted budget for FY 2022/23.
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)22-45, authorizing and approving the Oro Valley Police Department
(OVPD) to enter into a state and local High Intensity Drug Traficking Area (HIDTA) Task Force Agreement with the
Drug Enforcement administration (DEA) for the participation of one (1) OVPD officer in the Tucson task force and
authorizing the Chief of Police to sign that agreement on behalf of OVPD; and directing the Town Manager, Town
CLerk, and Town Legal Services Director, or their duly authorized officers and agents to take all steps necessary to
carry out the purposes and intent of this Resolution.
Attachments
(R)22-45 HIDTA 2022
Exhibit A - Agreement HIDTA 2022
Exhibit B - OJP Form 4061 OVPD
Exhibit B - OJP Form 4061 OVPD
RESOLUTION NO. (R)22-45
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF ORO VALLEY, AUTHORIZING THE ORO VALLEY
POLICE DEPARTMENT (OVPD) TO ENTER INTO A STATE
AND LOCAL HIGH INTENSITY DRUG TRAFFICING AREA
(HIDTA) TASK FORCE AGREEMENT WITH THE DRUG
ENFORCEMENT ADMINISTRATION (“DEA”) FOR THE
PARTICIPATION OF ONE (1) ORO VALLEY POLICE OFFICER
IN THE TUCSON TASK FORCE AND AUTHORIZING THE
CHIEF OF POLICE TO SIGN THAT AGREEMENT ON BEHALF
OF OVPD; AND DIRECTING THE TOWN MANAGER, TOWN
CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR
DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL
STEPS NECESSARY TO CARRY OUT THE PURPOSES AND
INTENT OF THIS RESOLUTION
WHEREAS, pursuant to A.R.S. § 11-952, the Town is authorized to enter into agreements
for joint and cooperative action to include the Agreement, attached hereto as Exhibit “A”,
with the DEA; and
WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police
Department (OVPD), pursuant to A.R.S. § 9-240 (B)(12); and
WHEREAS, the Town wishes to allow OVPD to enter into a Task Force Agreement
with the DEA to assist the DEA in drug trafficking interdiction, gathering and reporting
data relating to narcotics and dangerous drugs and undercover operations related illegal
activity detrimental to the health and general welfare of the residents of the Town and the
State of Arizona; and
WHEREAS, it is in the best interest of the Town to authorize OVPD to enter into the
State and Local HIDTA Task Force Agreement, attached hereto as Exhibit “A” and
incorporated herein by this reference, and to authorize the Police Chief to sign this
agreement and the accompanying, required OJP Form 4061/6, attached hereto as Exhibit
“B”, on behalf of OVPD, in order to set forth the terms and conditions to provide for the
health, safety and welfare of the residents of the Town of Oro Valley and the State of
Arizona.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town
of Oro Valley, that:
SECTION 1. OVPD is authorized to enter into the State and Local
HIDTA Task Force Agreement attached hereto as Exhibit “A” and
incorporated herein by this reference, between the Drug Enforcement
Administration and the Town of Oro Valley for participation of one (1)
Oro Valley Police Officer in the Tucson Task Force.
SECTION 2. The Police Chief is authorized to sign on behalf of OVPD
the State and Local HIDTA Task Force Agreement and the accompanying,
required OJP Form 4061/6, attached hereto as Exhibit “B”.
SECTION 3. The Mayor, Chief of Police and other administrative
officials of the Town of Oro Valley are hereby authorized to take such
steps as necessary to execute and implement the terms of the Agreement.
SECTION 4. The Town Manager, Town Clerk, Town Legal Services
Director, or their duly authorized officers and agents are hereby authorized
and directed to take all steps necessary to carry out the purposes and intent
of this resolution.
SECTION 5. All Oro Valley resolutions or motions and parts of
resolutions or motions of the Council in conflict with the provision of this
Resolution are hereby repealed.
SECTION 6. If any section, subsection, sentence, clause, phrase or
portion of this Resolution or the State and Local HIDTA Task Force
Agreement, attached hereto as Exhibit “A” 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.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 19th day of October, 2022.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date: Date:
EXHIBIT “A”
EXHIBIT “B”
FY2023 DEA HIDTA Task Force Agreement: Oro Valley Police Department 1 | P a g e
HIGH INTENSITY DRUG TRAFFICKING AREA (HIDTA)
STATE AND LOCAL TASK FORCE AGREEMENT
This agreement is made this 1st day of October 2022, between the United States Department of
Justice, Drug Enforcement Administration (hereinafter "DEA"), and the Oro Valley Police
Department, ORI#AZ0100700 (hereinafter "parent agency"). The DEA is authorized to enter
into this cooperative agreement concerning the use and abuse of controlled substances under the
provisions of 21 USC § 873.
Whereas there is evidence that trafficking in narcotics and dangerous drugs exists in the state of
Arizona area and that such illegal activity has a substantial and detrimental effect on the health
and general welfare of the people of Arizona, the parties hereto agree to the following:
1. The Tucson Task Force will perform the activities and duties described below:
a. disrupt the illicit drug traffic in the Arizona area by immobilizing targeted violators
and trafficking organizations;
b. gather and report intelligence data relating to trafficking in narcotics and dangerous
drugs; and
c. conduct undercover operations where appropriate and engage in other traditional
methods of investigation in order that the task force’s activities will result in effective
prosecution before the courts of the United States and the state of Arizona.
2. To accomplish the objectives of the Tucson Task Force, the parent agency agrees to
detail one (1) experienced officer(s) to the Tucson Task Force for a period of not less
than two years. During this period of assignment, the parent agency officers will be
under the direct supervision and control of DEA supervisory personnel assigned to the
task force.
3. The parent agency officers assigned to the task force shall adhere to all DEA policies and
procedures. Failure to adhere to DEA policies and procedures shall be grounds for
dismissal from the task force.
4. The parent agency officers assigned to the task force shall be deputized as task force
officers pursuant to 21 USC § 878.
5. To accomplish the objectives of the Tucson Task Force, DEA will assign six (6)special
agents to the task force. The parties to this agreement understand that financial
reimbursement to participating organizations is subject to the budgeting, administrative
and managerial decisions of the HIDTA Executive Board as well as the availability of
HIDTA funding (from whatever source). Subject to this planning and budgeting
guidance, the HIDTA will provide funding to support the activities of federal special
agents, task force officers, and other specified employees (if any). This support will
include: office space, office supplies travel funds, funds for the purchase of evidence and
information, investigative equipment, training and other support items.
FY2023 DEA HIDTA Task Force Agreement: Oro Valley Police Department 2 | P a g e
6. During the period of assignment to the Tucson Task Force, the parent agency will remain
responsible for establishing the salaries and benefits, including overtime, of the parent
agency officers assigned to the task force and for making all payments due them. HIDTA
will, subject to availability of annually appropriated funds, HIDTA funds may reimburse
the parent agency for overtime payments incurred by its task force officers in an amount
not to exceed a sum equivalent to 25% of the salary of a GS-12, Step 1 of the general pay
scale for the rest of the United States The parent agency will bill overtime as it is
performed and no later than 60 days after the end of the quarter in which the overtime is
performed. The invoice will identify each investigator who incurred overtime for the
tasking during the invoiced period, the number of overtime hours incurred, the hourly
regular and overtime rates in effect for each investigator, and the total cost for the
invoiced period. Note: Task Force Officer’s overtime “Shall not include any costs for
benefits, such as retirement, FICA, and other expenses.”
7. In no event will the parent agency charge any indirect cost rate to DEA for the
administration or implementation of this agreement.
8. The parent agency shall maintain on a current basis complete and accurate records and
accounts of all obligations and expenditures of funds under this agreement in accordance
with generally accepted accounting principles and instructions provided by DEA to
facilitate on-site inspection and auditing of such records and accounts.
9. The parent agency shall permit and have readily available for examination and auditing
by DEA, the United States Department of Justice, the Comptroller General of the United
States and any of their duly authorized agents and representatives, any and all records,
documents, accounts, invoices, receipts or expenditures relating to this agreement. The
parent agency shall maintain all such reports and records until all audits and examinations
are completed and resolved or for a period of six (6) years after termination of this
agreement, whichever is later.
10. The parent agency shall comply with Title VI of the Civil Rights Act of 1964, Section
504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, as amended,
and all requirements imposed by or pursuant to the regulations of the United States
Department of Justice implementing those laws, 28 C.F.R. Part 42, Subparts C, F, G, H
and I.
11. The parent agency agrees that an authorized officer or employee will execute and return
to DEA the attached OJP Form 4061/6, Certification Regarding Lobbying; Debarment,
suspension and Other Responsibility Matters; and drug-Free Workplace Requirements.
The parent agency acknowledges that this agreement will not take effect and no federal
funds will be awarded until the completed certification is received.
12. When issuing statements, press releases requests for proposals, bid solicitations and other
documents describing projects or programs funded in whole or part with federal money,
the parent agency shall clearly state: (1) percentage of the total cost of the program or
project which will be financed with federal money and (2) the dollar amount of federal
funds for the program or project.
FY2023 DEA HIDTA Task Force Agreement: Oro Valley Police Department 3 | P a g e
13. Vehicles may be provided by the parent agency or furnished by DEA subject to the
availability and approval of HIDTA funding for vehicle leases. The DEA may request
that HIDTA fund installation and removal of mobile radios in task force vehicles and
reimburse the parent agency for fuel, maintenance, and repair attributable to use of the
vehicles for task force purposes. Accidents involving vehicles while in use for task force
purposes shall be reported and investigated in accordance with the procedures of DEA
and the parent agency.
14. While on duty and acting on task force business, the parent agency officers assigned to
the HIDTA task force shall be subject to all DEA and federal government rules,
regulations and procedures governing the use of OGV’s for home to work transportation
and for personal business. The parties acknowledge and understand that the United
States of America is liable for the wrongful actions or inactions of federal employees,
including those federal deputized as task force officers, who are acting within the scope
of their employment under the Federal Torts Claim Act (2 8 U.S.C §§ 2671–2680). This
may extend to representation of the covered employee if in the best interests of the
United States (28 C.F.R. § 50.15(a)(2)). A state or local employee participating in the
task force may concurrently or separately be covered for the purposes of liability by their
employer.
15. This agreement shall be effective from the date of the last signature of a party and will
continue in effect until September 30, 2026. This agreement may be terminated by either
party on 30 days advance written notice. Federal funding of the HIDTA Task Force is
subject to the availability of annual appropriated funds for each federal fiscal year
(October 1 through September 30 of the next year). Billing for all outstanding
obligations must be received by DEA within 60 days of the end of each fiscal year or
within 60 days of the date of termination of this agreement. DEA will be responsible
only for obligations incurred by the parent agency during the term of this agreement on a
fiscal year basis, subject to the availability of funds.
For the Drug Enforcement Administration:
Cheri A. Oz, Special Agent in Charge Date
Phoenix Field Division
For the Oro Valley Police Department:
Kara M. Riley, Chief Date
U.S. DEPARTMENT OF JUSTICE
OFFICE OF JUSTICE PROGRAMS
OFFICE OF THE COMPTROLLER
CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND
OTHER RESPONSIBILITY MATTERS; AND DRUG-FREE WORKPLACE REQUIREMENTS
Applicants should refer to the regulations cited below to determine the certification to which they are required to
attest. Applicants should also review the instructions for certification included in the regulations before completing this
from. Signature of this form provides for compliance with certification requirements under 28 CFR Part 69, "New
Restrictions on Lobbying" and 28 CFR Part 67, "Government-wide Department and Suspension (Nonprocurement) and
Government-wide Requirements for Drug-Free Workplace (Grants)." The certifications shall be treated as a material
representation of fact upon reliance will be placed when the Department of Justice determines to award the covered transaction, grant, or cooperative agreement.
1. LOBBYING public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
As required by Section 1352, Title 31 of the U.S. Code, and implemented at 28 CFR Part 69, for persons entering into a grant or cooperative agreement over $100,000, as defined at 28 CFR Part 69, the applicant certifies that:
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
(a) No Federal appropriate funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of any Federal grant, the entering into of any cooperative agreement, and extension, continuation, renewal, amendment, or modification of any Federal grant or cooperative agreement;
(d) Have not within a three-year period preceding this application had one or more public transactions (Federal, State, or local) terminated for cause or default; and
B. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application. (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance with its instructions;
3. DRUG-FREE WORKPLACE (GRANTEES OTHER THAN INDIVIDUALS)
As required by the Drug-Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67 Sections 67.615 and 67.620-
(c) The undersigned shall require that the language of this cer - tification be included in the award documents for all subawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all sub- recipients shall certify and disclose accordingly.
A. The applicant certifies that it will or will continue to provide a drug -free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition;
2. DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS (DIRECT RECIPIENT)
(b) Establishing an on -going drug-free awareness program to inform employees about- As required by Executive Order 12549, Debarment and Suspension, and implemented at 28 CFR Prt 67, for prospective participants in primary covered transactions, as defined at 28 CFR Part 67, Section 67.510-
(1) The dangers of drugs abuse in the workplace;
(2) The grantee's policy of maintaining a drug-free workplace;
A. The applicant certifies that it and its principals: (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (a) Are not presently debarred, suspended, proposed for debar - ment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency;
(4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace;
(c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a);
(b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a
(d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will -
OJP FORM 4061/6 (3-91) REPLACES OJP FORMS 4061/2, 4062/3 AND 4061/4 WHICH ARE OBSOLETE.
(1) Abide by the terms of the statement; and DEA Offices
(2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction;
(e) Notifying the agency, in writing, within 10 calendar days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531. Notice shall include the identification number(s) of each affected grant;
Check if there are workplace on file that are not identified here.
Section 67, 630 of the regulations provides that a grantee that is a State may elect to make one certification in each Federal fiscal year. A copy of which should be included with each application for Department of Justice funding. States and State agencies may elect to use OJP Form 4061/7.
(f) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted- Check if the State has elected to complete OJP Form 4061/7.
(1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
DRUG-FREE WORKPLACE (GRANTEES WHO ARE INDIVIDUALS)
(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
As required by the Drug -Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67; Sections 67.615 and 67.620-
A. As a condition of the grant, I certify that I will not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in condition any activity with the grant; and
(g) Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs (a), (b), (c), (d), (e), and (f).
B. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant:
B. If convinced of a criminal drug offense resulting from a violation occurring during the conduct of any grant activity, I will report the conviction, in writing, within 10 calendar days of the conviction, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531.
Place of Performance (Street address, city, country, state, zip code)
As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above certifications.
1. Grantee Name and Address:
Oro Valley Police Department
11000 N. La Canada Drive
Oro Valley, AZ 85737
2. Application Number and/or Project Name 3. Grantee IRS/Vendor Number
4. Typed Name and Title of Authorized Representative
5. Signature 6. Date
Town Council Regular Session 1.
Meeting Date:10/19/2022
Requested by: Chris Cornelison Submitted By:Chris Cornelison, Town Manager's
Office
Department:Town Manager's Office
SUBJECT:
RESOLUTION NO. (R)22-46, AUTHORIZING THE TOWN MANAGER TO NEGOTIATE AND ACQUIRE THE
NECESSARY PROPERTY RIGHTS FROM THE APPLICABLE PROPERTY OWNERS TO COMPLETE THE
GREENOCK TRAIL, AS PREVIOUSLY DIRECTED BY TOWN COUNCIL RELATING TO THE PARKS
BOND PROJECT, THAT INCLUDES PORTIONS OF PROPERTIES 224-28-1440, 224-28-1450, 224-28-1490,
224-35-0860, 224-35-0870, 224-33-5770 & 224-33-5760
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
Town staff have been discussing and negotiating with the five (5) property owners along the CDO Wash, near
Greenock Drive and Oracle Road (please see image below for the path section), in regards to the Town potentially
acquiring the property rights to portions of their properties that run adjacent to the wash for the purpose of
pedestrian or bicycle use.
This section of path was identified as a potential trail connection as part of the Town's Parks Master Plan process
and concepts. The Town currently does not own or have authority on the yellow-highlighted section to build a
multi-use path, so receiving these rights are important to continue the path on this section.
The five (5) property owners include:
3 residential properties under separate ownerships:
224-28-1440, 224-28-1450, 224-28-1490
2 properties owned by the Country Club Golf Course (ClubCorp):
224-35-0860 & 224-35-0870
2 properties owned by the Desert Greens at Oro Valley HOA:
224-33-5770 & 224-33-5760
BACKGROUND OR DETAILED INFORMATION:
Staff was originally engaged by some of the residents along the southwestern bank of the Rooney Wash in 2019
regarding their concerns about safety, particularly pertaining to people using the bank of the wash for easy access.
The residents stated they had been experiencing trespassing and theft issues, and therefore were looking to the
Town for assistance. As part of the discussions, the Town expressed openness to taking on this part of the bank for
potential pedestrian and bicycle use, as some residents were considering cutting off the pathway to prohibit use of
existing pedestrian and bicycle users. This section of path leads to the CDO paved MUP.
The Town has since also engaged the owners of the Country Club Golf Course (ClubCorp) and the Desert Greens
HOA regarding their owned sections of the bank, as the property rights to their parcels would also be needed to
complete the pathway system from the existing public MUP route along the CDO Wash to Greenock Drive. The
Town has received written interest/approval from four (4) of the five (5) property owners, and will continue
negotiations with the last remaining owner if Town Council approves this Council item.
The Town also owns a parcel of vacant property just east of the potential trail off of Greenock Drive that could serve
as a future trailhead. The Pima County Regional Flood Control District has a utility easement on this part of the
bank.
FISCAL IMPACT:
Improvements, such as fencing and vegetation, have been included as part of the FY 22/23 Budget. The ClubCorp
parcels have been offered for purchase to the Town for a cost of $13,000 total.
SUGGESTED MOTION:
I MOVE to (approve/deny) Resolution No. (R)22-46, authorizing the Town Manager to negotiate and acquire the
necessary property rights from the applicable property owners to complete the Greenock Trail, a section of path
previously directed by Town Council as of interest related to the Parks Master Plan and Parks Bond Project, that
includes portions of properties 224-28-1440, 224-28-1450, 224-28-1490, 224-35-0860, 224-35-0870, 224-33-5770 &
224-33-5760.
Attachments
(R)22-46 Delegating Authority Greenock
Staff Presentation
RESOLUTION NO. (R)22-46
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING THE
ACTING TOWN MANAGER TO NEGOTIATE AND ACQUIRE
THE NECESSARY PROPERTY RIGHTS FROM THE
APPLICABLE PROPERTY OWNERS TO COMPLETE THE
GREENOCK TRAIL, AS PREVIOUSLY DIRECTED BY THE
TOWN COUNCIL RELATING TO THE PARKS BOND
PROJECT
WHEREAS, the Town has had an ongoing interest in acquiring the necessary property rights to
operate and maintain the Greenock Trail in its entirety.; and
WHEREAS, Council has expressed its interest in obtaining these property rights in
conversations related to the Parks and Recreation Bond Project; and
WHEREAS, it is in the best interest of the Town to delegate authority to the Acting Town
Manager to negotiate and acquire the necessary property rights from the applicable property
owners to complete the Greenock trail.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro
Valley, Arizona, that:
1. The Acting Town Manager is hereby authorized to take such steps as are necessary to
negotiate and acquire the necessary property rights from the applicable property owners to
complete the Greenock trail.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 19th day of October, 2022.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
Mike Standish, Town Clerk Tobin Sidles, Legal Services Director
RESOLUTION NO. (R)22-46, AUTHORIZING THE
TOWN MANAGER TO NEGOTIATE AND ACQUIRE
THE NECESSARY PROPERTY RIGHTS FROM THE
APPLICABLE PROPERTY OWNERS TO COMPLETE
THE GREENOCK TRAIL
October 19, 2022
Location
Property
Background
2019: Residents along potential Greenock Trail path approached Town
Concerns regarding safety, liability, theft and trespassing
Country Club owner and Desert Greens HOA subsequent discussions
May 2021 -Parks Master Plan
2022 –Have written interest/commitments from majority of property owners
Parks Master Plan –Potential Connection to JDK
Property Rights Acquisition Justification
Helps address current concerns of residents
Allows for potential future MUP expansion to JDK or Greenock trailhead
Keeps pathway open for public use while shielding neighbors
Part of Parks Master Plan’s MUP concept (JDK)
Majority owners willing to move forward now
Tonight’s Action
Looking for Town Council’s policy direction
Allows staff to proceed and execute agreements with property owners
Town will assume responsibility for maintaining pathway parcels
If approved, Town staff will complete remainder of process
Questions?
Town Council Regular Session 2.
Meeting Date:10/19/2022
Submitted By:David Gephart, Finance
Department:Finance
SUBJECT:
RESOLUTION NO. (R)22-47, ESTABLISHING THE ORO VALLEY HEALTH CARE BENEFITS TRUST FOR THE
TOWN SELF-INSURANCE PROGRAM
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
The Town self-insures for its health benefits and is located in Pima County, whose population exceeds 1 million
persons according to the 2020 census. Due to these facts, A.R.S. Section 11-981(B) requires the Town to establish
a trust with associated trustees. This item and accompanying resolution establishes the Oro Valley Health Care
Benefits Trust for Town medical self-insurance benefits in order to comply with statute.
Once the trust is approved, the Town will begin soliciting the open trustee positions, which Town Council will review
and approve at a later Town Council meeting.
BACKGROUND OR DETAILED INFORMATION:
A.R.S. Section 11-981(B) provides that any health self-insured city, town, county, or special health care district in a
county with greater than 1 million in population, shall place all funds into a trust fund for the purposes of this section
in amounts as determined appropriate by the governing body. Further, the trust shall be administered by at least
five (5) joint trustees, of whom no more than one (1) may be a member of the governing body and no more than one
(1) may be an employee of the city, town, county or special health care district. According to the 2020 census,
which was released August 12, 2021, Pima County is now officially in excess of 1 million in population, at 1,043,433
as of April 1, 2020. Additionally, the Town self-insures for its medical benefits. Therefore, a trust must be
established to comply with the statute.
The attached resolution and associated trust document is meant to comply with the statute and establish a health
self-insurance trust and related board of trustees for the Town.
FISCAL IMPACT:
None.
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)22-47, establishing the Oro Valley Health Care Benefits Trust for
the Town's Self-Insurance Program; and authorizing the Mayor, Town Clerk, and Town Legal Services Director to
execute the trust document to carry out the purposes and intent of this resolution.
Attachments
(R)22-47 OV Health Benefits Trust
Trust Document
RESOLUTION NO. (R)22-47
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
ORO VALLEY, ARIZONA, ESTABLISHING THE ORO VALLEY
HEALTH CARE BENEFITS TRUST FOR THE TOWN'S SELF-
INSURANCE PROGRAM FOR HEALTH INSURANCE BENEFITS AS
REQUIRED BY A.R.S. §11-981, AND APPROVING AND AUTHORIZING
THE MAYOR TO EXECUTE THE TRUST DOCUMENT
WHEREAS, the Town of Oro Valley has established a self-insurance program for certain health
and welfare benefits for certain of its employees, former employees, and their beneficiaries; and
WHEREAS, A.R.S. §11-981 requires that the funding for such self-insurance program be
deposited in a trust; and
WHEREAS, the Town intends the trust established by the attached Trust Document to satisfy
the requirements A.R.S. §11-981; and
WHEREAS, the Mayor and Council of the Town of Oro Valley find that this resolution is in the
best interests of the Town of Oro Valley and its citizens.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro
Valley, Arizona, that:
SECTION 1. The Oro Valley Health Care Benefits Trust is hereby established
for the Town’s self-insurance program for health insurance benefits, the Trust
Document, attached to and incorporated within this resolution as Exhibit “A”, is
hereby approved, and the Mayor is authorized to execute it for and on behalf of
the Town of Oro Valley.
SECTION 2. the Town Manager and staff are hereby directed and authorized to
undertake all other and further tasks required or beneficial to carry out the terms,
obligations, conditions and objectives of this resolution.
SECTION 3. All Oro Valley resolutions or motions and parts of resolutions or
motions of the Council in conflict with the provision of this Resolution are hereby
repealed.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this
Resolution or the attached Exhibit “A” 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.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 19th day of October, 2022.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date: Date:
EXHIBIT “A”
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ORO VALLEY HEALTH CARE BENEFITS TRUST
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RECITALS
WHEREAS the Town of Oro Valley, Arizona (“Oro Valley”) currently provides certain
welfare benefits for certain of its employees, former employees, elected officials, and their
beneficiaries;
WHEREAS Arizona law permits Oro Valley to establish a self-insurance program for the
management and administration of health benefits;
WHEREAS Arizona law requires that the funding for such self-insurance program be
deposited in a trust;
WHEREAS Oro Valley has established such a self-insurance program;
WHEREAS Oro Valley intends the trust established by this document (this “Trust
Document”) to satisfy the requirements of Arizona Revised Statutes (A.R.S.) Section 11-981;
WHEREAS Oro Valley intends the trust established by this Trust Document to be exempt
from taxation pursuant to Section 115 of the Internal Revenue Code; and
WHEREAS Oro Valley wishes trustees to hold and administer the Funds (defined below),
in trust, pursuant to the terms of this Trust Document;
NOW, THEREFORE, in consideration of the foregoing Oro Valley establishes the
following Trust:
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ARTICLE I
DEFINITIONS
“Account” means the bank or investment account(s) established by the Trustees to hold
some or all of the Funds.
“Beneficiary” means a person designated by a Participant who is or may become entitled
to a benefit under the Plan.
“Code” means the Internal Revenue Code of 1986, as amended.
“Council” means the Oro Valley Town Council.
“Employee” means an individual that Oro Valley classifies and treats as an employee (not
as an independent contractor) for payroll purposes, regardless of whether the individual is
subsequently reclassified as an employee of Oro Valley in a court order, in a settlement of an
administrative or judicial proceeding, or in a determination by the Internal Revenue Service, the
Department of the Treasury, or the Department of Labor.
“Chief Financial Officer means the individual engaged by the Town Manager to select,
manage, and invest Oro Valley’s funds, subject to the investment guidelines established by the
Council and Oro Valley’s Finance Department.
“Funds” means the assets of the Trust, in whatever form or location.
“Governmental Trust” means a trust that is exempt from taxation pursuant to Section 115
of the Internal Revenue Code.
“Oro Valley” means the Town of Oro Valley, Arizona.
“Participant” means an Employee who is eligible to participate and is participating in the
Plan; for purposes of this definition, a former Employee who has elected continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 is a Participant.
“Plan” means the specified group insurance pursuant to which Oro Valley provides
self--insured health care benefits to Participants and Beneficiaries and shall include any
amendments, endorsements, or riders attached to the insurance.
“Plan Administrator” means Oro Valley’s Human Resources Director.
“Plan Year” means the fiscal year of the Plan.
“Premium Holiday” means a designated period of time in which the Trust waives the total
premium (the amount established by the Trustees pursuant to Section 5.01(a)).
“Restricted Reserve” means the amount needed to pay Plan claims that are incurred but not
reported, and also Plan claims that are incurred but not paid. The amount shall be as attested to by
an actuary who has been engaged to provide services to the Trust and as approved by the Trustees.
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“Restricted-Plus-Six Reserve” means the Restricted Reserve plus an amount equal to six
months of premium payments for the Plan.
“Trust” means the legal entity established pursuant to this Trust Document.
“Trustees” means the Trustees described in this Trust Document.
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ARTICLE II
ESTABLISHMENT OF TRUST
Section 2.01. Establishment. Oro Valley hereby establishes the Trust, consisting of such monies
as Oro Valley may deposit from time to time in the Account; plus all other money or property as
shall lawfully become a part of the Trust; plus all the earnings, income, gains, appreciation and all
other increments of any nature from the foregoing; and less payments made pursuant to this Trust
Document. The Trust shall become effective only upon the determination of Oro Valley’s Town
Attorney that this document is in proper form and is within the power and authority of the Council,
and upon the approval of the Council.
Section 2.02. Name. The Trust shall be known as the Oro Valley Health Care Benefits Trust.
Section 2.03. Purpose.
(a) The Funds shall be held, invested, reinvested, and administered by the Trustees in
accordance with the terms of the Plan and the terms of this Trust Document, solely in the interest
of Participants and Beneficiaries and for the purpose of providing benefits to the Participants and
their Beneficiaries and defraying the reasonable expenses of administering the Plan and the Trust.
(b) The purpose of the Trust is to fund health, welfare and related benefits, consistent with the
restrictions contained in Code Section 115 and other applicable law, for the benefit of Participants
and Beneficiaries, in accordance with the Plan.
(c) The successful operation and administration of the Trust requires communication and
cooperation among the Trustees, the Council, Town Management, Town Staff, Employees, and
other third parties. Decisions made by the Trustees regarding operation and administration of the
Trust should take into account input from designated stakeholders.
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ARTICLE III
ORGANIZATION AND OPERATION OF TRUSTEES
Section 3.01. Appointment. The Council shall appoint three individuals and the Chief Financial
Officer and Mayor of the Town of Oro Valley to serve as Trustees overseeing the management
and administration of the Trust. The Council shall consider and may appoint any individual,
provided that the number and identity of the appointed Trustees shall conform to the requirements
of this Article. Each Trustee so appointed shall accept the appointment in writing and shall confirm
in writing that the Trustee agrees to hold and administer the Funds, in trust, pursuant to the terms
of this Trust Document.
Section 3.02. Number and Identity. There shall be five Trustees. With the exception of the
Chief Financial Officer and Mayor, no other appointments shall be a current or sitting member of
the Town Council or a current employee. The remaining three Trustees, shall have expertise in the
field of finance, employee benefits, health care, human resources, or risk management, and shall
reside in the Town of Oro Valley.
Section 3.03. Bonding. All Trustees shall be bonded in an amount to be approved by the Town
Manager. This requirement may be satisfied by a blanket performance bond or other coverage
provided by Oro Valley.
Section 3.04. Officers. At the commencement of each Plan Year, the Trustees shall elect a
Chairperson and a Vice Chair from among themselves. The Chairperson shall preside over the
work of the Trustees pursuant to this Trust Document. The Vice Chair shall preside in the
Chairperson’s absence. The Vice Chair shall cause to be maintained accurate records of all actions
of the Trustees, including minutes from all Trustees’ meetings. A copy of the minutes shall be
retained as a record of the Trust’s activities.
Section 3.05. Term. The Chief Financial Officer and Mayor shall serve for the duration of their
appointed or elected term with the Town of Oro Valley. The remaining trustees shall serve a four-
year term, unless a term is terminated earlier as described in this Article. Notwithstanding the
foregoing, the initial terms for the first five Trustees shall be as follows: one Trustee to serve an
initial term of two years; and two Trustees to serve an initial term of four years. The Council shall
determine which of the first three Trustees shall serve the two-year and four-year terms.
Section 3.06. Termination. The term of any Trustee shall automatically terminate upon the
earliest of the following: death; resignation; removal; failure to attend three consecutive meetings;
or, for a Trustee who is an employee of Oro Valley, the termination of such employment.
Section 3.07. Resignation of a Trustee. A Trustee may resign by giving 60 days’ prior written
notice to the Chairperson. The Chairperson may exercise discretion to waive or reduce the 60-day
requirement, but shall not waive the written-notice requirement. The notice shall state the effective
date of resignation. The resignation shall take effect on its stated effective date unless a new
Trustee is appointed and accepts appointment prior to the stated effective date, in which case the
date of acceptance shall constitute the effective date of the resignation. Upon the effective date of
the resignation, the resigning Trustee shall be discharged from any further duty or responsibility
under the Trust.
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Section 3.08. Removal of a Trustee. A Trustee may be removed at the discretion of the Town
Council upon recommendation of the Town Manager. Upon the effective date of the removal, the
removed Trustee shall be discharged from any further duty or responsibility under the Trust.
Section 3.09. Meetings. The Trustees shall meet whenever required to provide for the orderly
and timely administration of the business of the Plan and the Trust at such location as may be
acceptable to the Trustees. In calling, providing notice of, and holding meetings, the Trustees shall
conform to applicable law.
Section 3.10. Quorum. A quorum shall consist of three Trustees.
Section 3.11. Voting. Each Trustee shall have one vote. All actions by and decisions of the
Trustees shall be the affirmative vote of a majority of the number of the Trustees attending a duly
called meeting of the Trustees at which there is a quorum present.
Section 3.12. Exculpation and Indemnification of the Trustees.
(a) Reliance. A Trustee may act or rely upon any of the following:
(i) Any instrument, application, notice, request, signed letter, telegram or other paper
or document believed by the Trustee to be genuine and to contain a true statement of facts
and to be signed or sent by the proper person; or
(ii) The advice, opinion, records, reports or recommendations of any accountant,
actuary, administrator, attorney, consultant, co-trustee, investment agent or investment
manager or any other advisor selected by the Trustees with reasonable care.
(b) Exculpation of Trustees. No Trustee shall incur any liability individually or on behalf of
other individuals for any action or omission, unless such action or omission is due to the Trustee’s
own gross negligence, criminal conduct, willful misconduct, or lack of good faith.
(c) Indemnification of Trustees. The Trustees shall cause any person who is or has served as
a Trustee to be indemnified out of the Trust against all damages, liabilities and expenses incurred
by or imposed on the person in connection with any claim, suit, action or proceeding concerning
the Trust or the person’s acts or omissions as a Trustee, including, without limitation, legal fees
and amounts paid in any compromise or settlement, unless such acts or omissions constitute gross
negligence, criminal conduct, willful misconduct, or lack of good faith. Any indemnification
provided herein shall be limited to amounts not collected pursuant to valid and enforceable liability
insurance policies.
(d) Indemnification of Others. To the extent permitted by law, the Trustees, in their
discretion, may also cause the Trust to indemnify any person who is rendering services to the Trust
or Plan against all damages, liabilities and expenses incurred by or imposed upon such a person in
connection with any claim, suit, action or proceeding concerning the Plan or Trust or the acts or
omissions of such a person, including, without limitation, legal fees and amounts paid in any
compromise or settlement, unless such act or omission constitutes gross negligence, criminal
conduct, willful misconduct, or lack of good faith.
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(e) Limitation on Indemnification. Notwithstanding the foregoing, no indemnification shall
be provided unless and until:
(i) It is adjudicated that the action or omission did not constitute gross negligence,
criminal conduct, willful misconduct, or lack of good faith; or
(ii) The Trust receives a written opinion from legal counsel for the Trust that any such
adjudication would have determined that the action or omission did not constitute gross
negligence, criminal conduct, willful misconduct, or lack of good faith.
Section 3.13. Compensation of Individual Trustees. An individual Trustee shall not be paid
any compensation or reimbursement from the Trust for services provided to the Trust.
Section 3.14. Conflicts of Interest. Each Trustee shall comply with applicable state and federal
law concerning conflicts of interest.
Section 3.15. Service in More Than One Fiduciary Capacity. Any individual, entity or group
of persons may serve in more than one fiduciary capacity with respect to the Plan, the Trust, or
both to the extent such is permitted by law.
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ARTICLE IV
RESPONSIBILITIES AND POWERS OF THE TRUSTEES
Section 4.01. In General. The Trustees shall have the power to perform all acts, to take all
proceedings, and to exercise all rights and privileges, although not specifically mentioned herein,
as the Trustees may deem necessary or advisable to administer and manage the Trust so as to carry
out the purposes of this Trust Document and the Plan. The Trustees shall discharge their
responsibilities under this Trust Document:
(a) For exclusively governmental purposes, namely providing benefits to Participants and
Beneficiaries and defraying the reasonable expenses of administering the Plan and Trust;
(b) With the care, skill, prudence, and diligence under the circumstances that a prudent person
acting in a like capacity and familiar with such matters would use in the conduct of an enterprise
of a like character and with like aims;
(c) By diversifying the investments of the Fund so as to minimize the risk of large losses,
unless under the circumstances it is clearly prudent not to do so; and
(d) In accordance with the provisions of the Plan and this Trust Document.
Section 4.02. Discretionary Powers. The Trustees may without limitation do all of the following:
(a) Adopt policies, rules and procedures for the administration of the Trust; provided, however,
that these policies, rules and procedures may not be inconsistent with the provisions of this
Declaration of Trust or any applicable local, state, or federal law or regulations.
(b) Authorize the Plan Administrator or designee on behalf of the Trust to retain the services
of actuaries, auditors, engineers, private consultants, administrators and advisors as the Trustees
consider necessary to carry out the business and purposes of the Trust. The Trustees may seek
private outside legal counsel when legal advice is considered necessary. For routine matters
associated with administration of the Trust, the Trustees may seek counsel from the Town Attorney
or designee.
(c) Recommend modifications of the terms and conditions of this Trust document to the
Council.
(d) Authorize the Plan Administrator or designee to administer the day-to-day affairs of this
Trust.
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Section 4.03. Statutory Requirements.
(a) Risk Management Consultant or Insurance Administrator. Prior to paying Plan expenses
on a self-insured basis, the Trustees shall confirm that the Town Manager has designated a risk
management consultant or insurance administrator licensed pursuant to Title 20, Chapter 2 of the
Arizona Revised Statutes, and the Trustees shall further confirm that such license was verified by
the Council prior to such designation.
(b) Auditor. Oro Valley shall engage an external auditor to perform an annual audit of the
Trust. Each audit report shall be kept on file for five years with the Town Clerk. The Trustees
shall work and cooperate with such auditor.
(c) Stop-Loss. Prior to paying any Plan claims on a self-insured basis, the Trustees shall
confirm that Oro Valley has procured stop-loss insurance for the Trust from an insurer authorized
to do business in Arizona.
Section 4.04. Management. The Trustees shall have the power to manage the Trust, including
the acquisition and disposition of property that is in or part of the Trust, as follows:
(a) General Authority. The Trustees shall have exclusive authority and responsibility with
respect to the custody and management of the Trust, except to the extent any such authority has
been assigned elsewhere by this Trust Document or has been delegated by the Trustees pursuant
to this Trust Document.
(b) Separate Fund Account. The Trustees have the exclusive responsibility and authority to
maintain the Funds in Trust. The Trustees shall maintain the Funds at a financial institution
approved by Oro Valley.
(c) Contributions and Distributions. The Trustees have the authority and responsibility to
determine the required contributions to and appropriate distributions from the Trust, as more fully
described in Article V.
(d) Restricted Reserve. The Trustees have the authority and responsibility to determine the
appropriate amount of Funds that the Trust should hold as Restricted Reserve, based on accepted
actuarial standards and consistent with accounting principles generally accepted in the United
States.
(e) Premium Holidays. No Premium Holiday shall be permitted unless it is approved by the
Trustees. The use of Funds for a Premium Holiday is subject to the following limitations:
(i) Premium Holiday. The Trustees may determine that Funds in excess of the
Restricted-Plus-Six Reserve be used to pay for a Premium Holiday. The Trustees shall not
approve a Premium Holiday if the use of Funds for the Premium Holiday would cause the
total Funds to fall below the level of the Restricted-Plus-Six Reserve.
(f) Service Providers.
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(i) For the Trust. The Trustees have the authority to request that appropriate Oro
Valley staff provide services to the Trust. In addition, the Trustees have the authority to
engage suitable third parties to provide services for the Trust. Such authority is exclusive
to the Trustees, with the following exceptions: Oro Valley has the authority to select and
engage an external auditor for the Trust, and Oro Valley has the authority to select and
purchase stop-loss coverage for the Trust.
(ii) For the Plan. Per ARS 11-981(b)(1) the Trustees do not have the authority to
engage third parties to provide risk management or insurance administration services for
the Plan.
(iii) Payment. The Trustees have the authority to pay reasonable compensation and
expenses for any parties engaged to provide services for the Trust as set forth above.
(iv) Compliance. All engagements and payments pursuant to this Section shall comply
with applicable procurement laws, policies, and procedures.
(g) Accounts, Books, and Records. Trust funds will be managed by the Town of Oro Valley.
The Trustees have the authority and responsibility to ensure the Town keeps full and accurate
accounts, books, and records concerning the Fund. All such accounts, books, and records shall be
open to inspection in accordance with applicable law.
(i) Accounting and Valuation. Within a reasonable time after the end of each Plan Year, the
Trustees shall review and approve an accounting of the administration of the Trust since the
previous accounting. The accounting shall include all transactions of the Trust during the relevant
period, as well as all property in the Trust and its fair market value at the end of the relevant period.
(h) Legal. The Trustees have the authority to prosecute or defend actions, claims, or
proceedings necessary or advisable for the protection of the Trust.
Section 4.05. Investments. The Trustees will, through the Chief Financial Officer and in
accordance with the reasonably prudent investment standard for Trustees, provide for the
investment of Trust monies in a manner consistent with the provisions of Arizona Revised Statutes
Title 35, Chapter 2, Article 2.1 regarding management of public monies.
Section 4.06. Responsibilities Not Assigned to the Trustees. The Trustees shall have no
authority or responsibility for:
(a) Designing, adopting, amending, or terminating the Plan;
(b) Ensuring that the Plan complies with state or federal laws mandating the terms of the Plan;
(c) Determining what portion of Plan premiums should be paid by Participants and
Beneficiaries;
(d) Collecting premiums from Participants or Beneficiaries.
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Authority and responsibility for the foregoing items in this Section are assigned to Oro Valley,
which may delegate this authority and responsibility to a third party.
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ARTICLE V
CONTRIBUTIONS TO AND DISTRIBUTIONS FROM THE TRUST
Section 5.01. Contributions
(a) Premiums.
(i) Amount. The Trustees shall determine the total premium that shall be required to
participate in the Plan at each coverage level (e.g., individual coverage, family coverage).
In determining premiums, the Trustees shall consult with the risk management consultant
or insurance administrator engaged to assist the Trust, the Plan Administrator, and the
Chief Financial Officer, and shall also consult with an actuary familiar with the Trust and
the Plan. In determining the total premium, the Trustees shall consider all reasonable
factors, including but not limited to the amount of reserves in the Trust, the claims
experience of the Plan and Trust, market conditions, and cost trends. The Trustees shall
determine the total premium no less frequently than annually, but the Trustees have the
authority to increase premiums more frequently if reasonably necessary to protect the
financial stability of the Trust. The Trustees may recommend Premium Holidays subject
to Section 4.04(e).
(ii) Administration. At its discretion, the Trustees may establish a contribution
schedule, adopting a funding policy, or using any similar mechanism to arrange for the
orderly contribution of funds to the Trust. The Town of Oro Valley shall forward the
premiums to the Trust no less frequently than monthly, in accordance with the arrangement
adopted by the Trustees. Upon the Trustees’ knowledge that the Town of Oro Valley is
delinquent in its contributions, the Trustees shall promptly provide written notice of the
delinquency to the Council, the Town Manager, and the Town Attorney.
(iii) Payment By Participants and Beneficiaries. The Town of Oro Valley may
determine that a portion of the premium should be paid by Participants and Beneficiaries .
In such event, the Town of Oro Valley shall be responsible for collecting such portion from
Participants and Beneficiaries and depositing those monies in the Trust . If a Participant
or Beneficiary fails to pay the appropriate portion of his or her premium, the Town of Oro
Valley shall ensure that the total premium shall nevertheless be paid to the Trust. The
Town of Oro Valley shall be responsible for recovering delinquent amounts from
Participants or Beneficiaries.
(b) Other Funding. The Trustees may permit the Trust to receive additional funding,
including but not limited to any one or more of the following: interest, dividends, rebates, gifts,
grants, special taxes levied to satisfy judgments, recovery from insurers, subrogation, or
reimbursement.
Section 5.02. Distributions. Distributions from the Trust may be made for any of the following:
(a) Paying for or providing benefits to Participants or Beneficiaries, in accordance with the
terms, provisions and conditions of the Plan, as determined and directed by the Plan Administrator.
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(b) Paying all reasonable expenses of operating, administering, or managing the Plan or Trust,
including but not limited to:
(i) Where third parties are engaged to provides services to the Plan or Trust, as
described above, compensating such third parties;
(ii) Where Oro Valley employees render services to the Trust or Plan, compensating
Oro Valley for such services;
(iii) Where taxes or assessments are levied or imposed upon the Trust or the Plan,
paying such taxes or assessments.
(c) Upon termination, pursuant to Section 6.03.
Section 5.03. No Inurement to Private Interests. Except as specified in Section 5.02, at no time
shall any part of the principal or income of the Trust inure to the benefit of a private individual or
entity.
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ARTICLE VI
AMENDMENT AND TERMINATION
Section 6.01. Amendment of Trust. This Trust Document may be amended in writing at any
time by the Council. The Trustees may recommend amendments to the Council. Notwithstanding
the foregoing, no amendment shall be adopted which alters the basic purpose of the Trust, causes
the Trust to lose its status as a Governmental Trust, conflicts with any applicable law or
government regulation, causes the use or diversion of any part of the Trust for purposes other than
those authorized herein, or retroactively deprives anyone of a vested right or interest.
Section 6.02. Termination of Trust. The Trust shall continue until terminated by the Council in
writing. The Council shall supply a copy of the writing to all the Trustees .
Section 6.03. Distribution Upon Termination.
(a) Upon termination of the Trust, the Trustees shall use the Funds to pay or to provide for the
payment of any and all obligations of the Trust and the Plan, and the Trustees shall distribute and
allocate the Funds in accordance with the then-current provisions of the Trust and the Plan;
provided that, notwithstanding any Plan provision to the contrary, the Funds shall be allocated and
distributed in the priorities and according to the categories required by applicable law.
(b) Upon termination of the Trust, after all obligations of the Trust and Plan have been
satisfied, any remaining Funds shall revert and be distributed to the Town of Oro Valley’s general
fund.
Section 6.04. Amendment and Termination of Plan. Nothing in this Trust Document shall
affect the Town of Oro Valley’s ability to amend or terminate the Plan.
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ARTICLE VII
GENERAL PROVISIONS
Section 7.01. No Right, Title, or Interest. No Employer, Employee, Participant, or Beneficiary
shall have any right, title or interest in the Trust or any right to contributions to be made thereto,
or any claim against the Trust on account thereof, except as may be provided from time to time by
this Trust Document or the Plan, and then only to the extent of the benefits payable to such person
under the Plan.
Section 7.02. Nonalienation of Benefits. The Trust shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment,
execution or levy of any kind, either voluntary or involuntary, including any such liability which
is for alimony or other payments for the support of a spouse, former spouse or any relative, until
such payment has been actually received by the person entitled to it. Any attempt to anticipate,
alienate, settle, transfer, assign, pledge, encumber, charge or otherwise dispose of the same shall
be void. The Trust shall not in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements or torts of any person entitled to benefits under the Plan.
Section 7.03. Prohibition of Diversion.
(a) It shall be impossible by operation of the Trust or by its natural termination, by power of
revocation or amendment, by the happening of any contingency, by collateral arrangement or by
any other means, for any part of the corpus or income of the Trust or any funds contributed thereto
to be used for or diverted to purposes other than as described herein.
(b) Notwithstanding the foregoing, a contribution made by Oro Valley as the result of a
mistake may be returned to Oro Valley if the Trustee so directs, provided that the repayment is not
prohibited by applicable law.
Section 7.04. Incompetency. If it is determined that any person entitled to receive benefits is
unable to care for his or her affairs because of mental or physical incapacity, the benefits due such
person may be paid to his or her legal guardian or conservator, or to any relative by blood or by
marriage to be used and applied for the benefit of such person. Payment to such legal
representative or relative of the person on whose account benefits are payable shall operate to
discharge the payor from any liability to such person or to anyone representing him or her (or his
or her interest), and the Trustees shall have no duty or obligation to see that the funds are used or
applied for the benefit of such person.
Section 7.05. Notice and Delivery of Documents. Any notice required to be given under this
Trust Document may be given in person or by first class mail. When notice is given by mail, it
shall be deemed to have been given as of the date of posting to the last-known address of the
addressee available from the Trust records.
Section 7.06. Headings. Titles of articles and headings of sections and subsections are inserted
for convenience of reference. They constitute no part of this Trust Document and are not to be
considered in the construction hereof.
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Section 7.07. Construction. This Trust Document is created and accepted in the State of
Arizona. All questions pertaining to its validity or construction not otherwise preempted by federal
law shall be determined in accordance with the laws of the State of Arizona. If any provision
contained in this Trust Document or in any collective bargaining agreement pursuant to which this
Trust Document is created should be held unlawful, such provision shall be of no force and effect
and this Trust Document or any such collective b argaining agreement shall be treated as if such
provision had not been contained therein.
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IN WITNESS HEREOF, the Town of Oro Valley hereby establishes the Oro Valley
Healthcare Benefits Trust.
DATED this 19th day of October 2022
TOWN OF ORO VALLEY, ARIZONA
A Municipal Corporation
Joseph Winfield, Mayor
ATTEST:
Michael Standish, Town Clerk
APPROVED AS TO FORM
Tobin Sidles, Town Attorney
STATE OF ARIZONA )
) ss.
COUNTY OF PIMA )
The foregoing instrument was acknowledged before me this _____ day of _________________
2022, by Joseph Winfield, the Mayor of the TOWN OF ORO VALLEY, ARIZONA, a municipal
corporation, on its behalf.
(Seal)
Notary Public