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HomeMy WebLinkAboutPackets - Council Packets (712)       *AMENDED (3/5/18, 3:00 PM) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION March 7, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE         REGULAR SESSION AT OR AFTER 5:30 PM   CALL TO ORDER   ROLL CALL   EXECUTIVE SESSION - Pursuant to ARS 38-431.03 (A)(3) and (A)(4) to discuss with and receive legal advice from its attorneys regarding a settlement agreement for property to be obtained as a part of the Tangerine Road Corridor improvement project   REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS • Spotlight on Youth   DEPARTMENT REPORTS   The Mayor and Council may consider and/or take action on the items listed below: 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. *Proclamation - World Down Syndrome Day - March 21, 2018   CONSENT AGENDA (Consideration and/or possible action)   A. Minutes - February 7, 2018   B. Resolution No. (R)18-06, authorizing and approving an Intergovernmental Agreement (IGA) among Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, Tucson Airport Authority and the Town of Oro Valley Police Department for the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team   C. Resolution No. (R)18-07, authorizing and approving a franchise agreement between the Town of Oro Valley and Comcast of Arizona, Inc.   D. Resolution No. (R)18-08, providing notice of intent to increase water rates for the Oro Valley Water Utility   E. Resolution No. (R)18-09, authorizing and approving an amendment to the Intergovernmental Agreement between Pima County and the Town of Oro Valley for the Joint Administration of Public Works Capital Improvement Projects   F. Resolution No. (R)18-10, authorizing and approving Amendment No. 2 to the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley for improvements to La Cholla Boulevard: Overton Road to Tangerine Road   REGULAR AGENDA   1. FISCAL YEAR 2017/18 MID-YEAR FINANCIAL UPDATE   2. POSSIBLE ACTION TO APPROVE THE SETTLEMENT AGREEMENT REGARDING PROPERTY TO BE OBTAINED AS PART OF THE TANGERINE ROAD CORRIDOR IMPROVEMENT PROJECT   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)   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.   ADJOURNMENT     POSTED: 2/28/18 at 5:00 p.m. by pp POSTED: 2/28/18 at 5:00 p.m. by pp AMENDED AGENDA POSTED: 3/5/18 at 5:00 p.m. by pp 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. – 5:00p.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. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Town Council during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Town Council on any item(s) on this agenda, please complete a speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the 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 when completing the blue speaker card. Please step forward to the podium when the Mayor announces the item(s) on the agenda which you are interested in addressing. 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. Please organize your speech, you will only be allowed to address the Council once 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 issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation.    Town Council Regular Session Item # 1. Meeting Date:03/07/2018   Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: *Proclamation - World Down Syndrome Day - March 21, 2018 RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Proclamation     Town Council Regular Session Item # A. Meeting Date:03/07/2018   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Minutes - February 7, 2018 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 February 7, 2018 minutes.  Attachments 2-7-18 Draft Minutes  2/7/18 Minutes, Town Council Study / Regular Session 1 MINUTES ORO VALLEY TOWN COUNCIL STUDY / REGULAR SESSION February 7, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE STUDY SESSION AT OR AFTER 4:00 PM CALL TO ORDER Mayor Hiremath called the meeting to order at 4:00 p.m. ROLL CALL PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember STUDY SESSION AGENDA 1.Presentation by the Town Manager and Rob DeMore, President of Troon, and possible discussion by the Mayor and Council regarding the future of the Community Center and golf courses Town Manager Mary Jacobs presented study session item #1 and included the following: - Brief Background - Community Investment and Fund Performance - Evaluation Process - Goals/Givens - Evaluation Process - Notable Trends - Evaluation Process - Notable Trends Cont. - Expanded Resident Opportunities - World Class Tennis - Outlook Restaurant - Community Center - Conclusions Ms. Jacobs introduced Rob DeMore, President of Troon, who continued the presentation and included the following: 2/7/18 Minutes, Town Council Study / Regular Session 2 - Golf Courses - Consultant Report - Summary of Consultants' Report and Options - Consultants Reports Key Conclusions - Golf Courses Analysis Process - Golf Courses - Analysis - Golf Courses - Analysis Cont. - Summary of Troon Analysis of Reports - Golf Courses - Conclusions Ms. Jacobs and Mr. DeMore concluded the presentation with the following: - Capital Investments Required - Expected Outcomes - Two Years - Expected Outcomes - Five Years* - Wrap Up The following individuals spoke on item #1. Oro Valley resident Dick Johnson Oro Valley resident Robert Wanczyk Oro Valley resident Tracey Smith Oro Valley resident Michael Barclay Oro Valley resident Gayle Lopez Oro Valley resident Bob Kynch Oro Valley resident Harold Vandel Oro Valley resident Jerry Ward Oro Valley resident Matt Brown Oro Valley resident Paul Byrne Oro Valley resident Jim Heckman Oro Valley resident Gayle Townsend The following individuals spoke in support of item #1. Oro Valley resident Phil Wheeler Oro Valley resident George Lindsay Oro Valley resident William Benedict Oro Valley resident John Gorman Oro Valley resident John Mawhinney Oro Valley resident JoAnn Carolla Port The following individuals spoke in opposition of item #1. Oro Valley resident Gail Freidenrich Discussion ensued amongst Council, staff and Mr. DeMore regarding study session item #1. 2/7/18 Minutes, Town Council Study / Regular Session 3 ADJOURNMENT MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Snider to adjourn the study session at 6:15 p.m. MOTION carried, 7-0. REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Hiremath called the meeting to order at 6:15 p.m. ROLL CALL PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember ORDER OF BUSINESS Mayor Hiremath re-organized the agenda as follows: Executive Session would be held at the end of the Regular Agenda with remaining items to stay in order. PLEDGE OF ALLEGIANCE Mayor Hiremath led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Communications Administrator Misti Nowak announced the upcoming Town meetings and events. COUNCIL REPORTS Vice Mayor Waters provided an update on the influence the Oro Valley distracted driving ordinance has had on the City of Tucson and Pima County. In addition, the State Legislature is currently reviewing SB1261 that would also prohibit texting while driving in the State. DEPARTMENT REPORTS 2/7/18 Minutes, Town Council Study / Regular Session 4 Economic Development Manager Amanda Jacobs invited the public to be part of the opportunity to view The Wall that Heals, a Vietnam Veterans Memorial Replica and Mobile Education Center, Friday, March 16 through Sunday, March 18, 2018 at Canada Del Oro Riverfront Park. Oro Valley Arts and Cultural Ambassadors Shasha Case and Joanne Corolla introduced the pieces of artwork on display in the Council Chambers which were created by students from Immaculate Heart Middle School, Leman Academy of Excellence, Richard B. Wilson K-8 School and Copper Creek Elementary School. INFORMATIONAL ITEMS There were no informational items. CALL TO AUDIENCE Alyssa Page spoke regarding development in the region. PRESENTATIONS There were no presentations. CONSENT AGENDA Councilmember Snider requested to remove item (C) from the Consent Agenda for discussion. A.Minutes -January 11 and January 17, 2018 B.Cancellation of the February 21, 2018 regular Town Council meeting D.Resolution No. (R)18-03, adopting the Oro Valley Transit Services Division Title VI Plan Update E.Resolution No. (R)18-04, affirming that, with regard to the approximate 934 acres of State Land in Section 5 of T12S, R13E, and Section 32 of T11S, R13E, the Town intends to pursue annexation and does not have, nor does it intend to adopt, regulations requiring the fencing of open range livestock grazing or prohibiting mining on state land annexed into the Town F.Resolution No. (R)18-05, authorizing and approving a subgrantee agreement between the Town of Oro Valley and the Arizona Department of Homeland Security to fund overtime and mileage under the Operation Stonegarden program G.Greater Oro Valley Chamber of Commerce Quarterly Report: October 1, 2017 - December 31, 2017 2/7/18 Minutes, Town Council Study / Regular Session 5 H.Visit Tucson Quarterly Report: October 1, 2017 -December 31, 2017 MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Rodman to approve Consent Agenda items (A-B) and (D-H). MOTION carried, 7-0. C.Appointments to the Parks and Recreation Advisory Board (PRAB) Councilmember Snider welcomed Gary Temple and Philip Saletta to the Parks and Recreation Advisory Board. MOTION:A motion was made by Councilmember Snider and seconded by Councilmember Rodman to approve the appointments of Gary Temple and Philip Saletta to the Parks and Recreation Advisory Board for terms expiring December 31, 2019. Discussion ensued amongst Council regarding item (C). MOTION carried, 7-0. REGULAR AGENDA There were no Regular Agenda items. EXECUTIVE SESSION - Pursuant to ARS 38-431.03(A)(1) Personnel matters - Police Chief Daniel G. Sharp’s annual performance review MOTION:A motion was made by Councilmember Snider and seconded by Vice Mayor Waters to go into Executive Session at 6:39 p.m. Pursuant to ARS 38-431.03(A)(1) Personnel matters - Police Chief Daniel G. Sharp's annual performance review. MOTION carried, 7-0. Mayor Hiremath said the following staff members would join Council in Executive Session: Police Chief Danny Sharp and Town Clerk Michael Standish. RESUME REGULAR SESSION CALL TO ORDER Mayor Hiremath called the meeting to order at 7:08 p.m. ROLL CALL 2/7/18 Minutes, Town Council Study / Regular Session 6 PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember FUTURE AGENDA ITEMS No future agenda items were requested. CALL TO AUDIENCE No comments were received. ADJOURNMENT MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Snider to adjourn the meeting at 7:08 p.m. MOTION carried, 7-0. Prepared by: __________________________ Michelle Stine, CMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the study / regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 7th day of February, 2018. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2018. ___________________________ Michael Standish, CMC Town Clerk    Town Council Regular Session Item # B. Meeting Date:03/07/2018   Requested by: Daniel G. Sharp Submitted By:Colleen Muhr, Police Department Department:Police Department Information SUBJECT: Resolution No. (R)18-06, authorizing and approving an Intergovernmental Agreement (IGA) among Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, Tucson Airport Authority and the Town of Oro Valley Police Department for the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: Request is being made to enter into an IGA with regional partners including Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, Tucson Airport Authority and the Town of Oro Valley Police Department for the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team. BACKGROUND OR DETAILED INFORMATION: The purpose of this IGA is to form the Pima Regional Mobile Field Force, the mission of which is to respond, when requested by a Participating Jurisdiction or other law enforcement entity, to any of the following: civil disobedience, protest, civil disturbance, riot, sports event or other event which requires a cohesive unilateral law enforcement response to mitigate participant actions during the event and to secure, isolate and resolve situations in a manner consistent with escalation of force theories and the preservation of life. FISCAL IMPACT: Each participating member of the the team is responsible for procuring the necessary Each participating member of the the team is responsible for procuring the necessary equipment and funding the salaries and benefits of the officers involved in participation. Sufficient capacity for these costs has been included in the current year budget, and will be requested in the proposed FY 2018/19 budget. SUGGESTED MOTION: I MOVE to (adopt or deny) Resolution No. (R)18-06, authorizing and approving an Intergovernmental Agreement among Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, Tucson Airport Authority and the Town of Oro Valley Police Department for the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team. Attachments (R)18-06 MFF Resolution  Revised IGA  C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D025E07D\@BCL@D025E07D.doc RESOLUTION NO. (R)18-06 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT AMONG PIMA COUNTY, TOWN OF MARANA, CITY OF SOUTH TUCSON, TOWN OF SAHUARITA, PASCUA YAQUI TRIBE, THE TUCSON AIRPORT AUTHORITY AND THE TOWN OF ORO VALLEY POLICE DEPARTMENT FOR THE FORMATION, IMPLEMENTATION, DEPLOYMENT, EQUIPPING, GOVERNANCE AND MAINTENANCE OF A REGIONAL MOBILE FIELD FORCE TEAM WHEREAS, pursuant to A.R.S. § 11-952, the Town of Oro Valley is authorized to enter into or renew agreements for joint and cooperative action with other public agencies and WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240 (B)(12); and WHEREAS, the Town wishes to enter into an Intergovernmental Agreement with Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, and the Tucson Airport Authority for the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team; and WHEREAS,This Regional Mobile Field Force Team will cooperative team among the listed jurisdictions who will work together through their various law enforcement agencies to form and operate the Pima Regional Mobile Field Force Team to assist in regional law enforcement needs; and WHEREAS, the term of this IGA shall be for five years from its effective date and shall have the option to extend the terms of the agreement for two additional five year terms; and WHEREAS, it is in the best interest of the Town to enter into the Intergovernmental Agreement, attached hereto as Exhibit “A” and incorporated herein by this reference, 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. The Intergovernmental Agreement attached hereto as Exhibit “A” and incorporated herein by this reference, with Pima County, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, and the Tucson Airport Authority for C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D025E07D\@BCL@D025E07D.doc the formation, implementation, deployment, equipping, governance and maintenance of a Regional Mobile Field Force Team is hereby authorized and approved. SECTION 2. The 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. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 7 th day ofMarch, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D025E07D\@BCL@D025E07D.doc EXHIBIT “A” 1 Intergovernmental Agreement Among Pima County, Town of Oro Valley, Town of Marana, City of South Tucson, Town of Sahuarita, Pascua Yaqui Tribe, and the Tucson Airport Authority ForThe Formation, Implementation, Deployment, Equipping, Governance and Maintenance of a Regional Mobile Field Force This Intergovernmental Agreement (“IGA”) is entered into by and amongPima County, a political subdivision of the State of Arizona (“County”); the Town of Oro Valley, a municipal corporation; the Town of Marana, a municipal corporation; the City of South Tucson, a municipal corporation; the Town of Sahuarita, a municipal corporation; the Pascua Yaqui Tribe, a federally recognized Indian tribe; and the Tucson Airport Authority, Inc., an Arizona non-profit corporation (referred to collectively as the “Participating Jurisdictions”or “parties”). Recitals A. WHEREAS theParticipating Jurisdictions previouslyenteredinto a collective agreement to form and operate the Pima Regional Mobile Field Force (“MFF”); and B. WHEREASthe Countyandmunicipal corporationsmay contract for services and enter into agreements with one another for joint or cooperative action pursuant to A.R.S. § 11-952; and C. WHEREAS the Pascua Yaqui Tribe may contract for services and enter into agreements for joint or cooperative action pursuant to Article VI, Section 1(a) of the Constitution of the Pascua Yaqui Tribe; and D. WHEREAS the Tucson Airport Authority may contract for services and enter into agreements pursuant to A.R.S. § 10-3302; and E. WHEREAS continuation of the Pima Regional MFF willmaintain and enhance the ability of the Participating Jurisdictions, through their various law enforcement agencies, to respond to those situations in which use of a MFF is appropriate. NOW, THEREFORE, the Participating Jurisdictions, pursuant to the authority described above, and in consideration of the matters and things hereinafter set forth, do mutually agree as follows: Agreement 2 I. Purpose The purpose of this IGA is to form the Pima Regional Mobile Field Force, the mission of which is to respond,when requested by a Participating Jurisdiction or other law enforcement entity, to any of the following: civil disobedience, protest, civil disturbance, riot, sports event or other event which requires a cohesive unilateral law enforcement response to mitigate participant actions during the event and to secure, isolate and resolve situations in a manner consistent withescalation of force theories and the preservation of life. II. Scope The Participating Jurisdictions shall work together in good faith through their various law enforcement agencies to form and operate the Pima Regional MFF as set forth in the Standard Operating Procedures and Policies Manual(the “Manual”), which isincorporated herein by this reference. Additional jurisdictions may be permitted to participate upon the unanimousconsent of all the then-Participating Jurisdictions, and execution of a resolution and a counterpart signature page to this IGA by the additional jurisdiction’s governing body. Any new participant so admitted will be deemed to be a “Participating Jurisdiction” hereunder. All individuals selected to participate as members of the MFFwill continue to be employees of the ParticipatingJurisdiction with which they are associated. III. Financing Each Participating Jurisdiction will fund the procurement of all necessary equipment for its members of the MFF. Grant funds obtained for the MFF shall be used for the benefit of all Participating Jurisdictions. In the event a Participating Jurisdiction withdraws fromthe MFF pursuant to Section V(A) or (B) herein, the Participating Jurisdiction shall not be entitled to any share of grant fundsexisting atthe date of withdrawal, and all such funds shall continue to be used for the benefit of the remaining Participating Jurisdictions. Each Participating Jurisdiction shall bear the costs of its own employees incurred in the implementation and operation of this IGA, including wages, overtime, health insurance, benefits, and workers’ compensation. IV. Term This IGA shall be for an initialterm of five (5) years,effective on the date it is recorded with the Pima County Recorder, following execution by all the parties.The parties shall have the option to extend the term of this IGA for two additionalfive (5)year periods or any portion thereof. Any modification or time extension of this IGA shall be by formal written amendment executed by the parties. 3 V. Termination A.Withdrawal without Cause.A Participating Jurisdiction may terminate its participation in the MFF under this IGA, with no less than sixty (60) calendar days’ written notice to the other Participating Jurisdictions. If a Participating Jurisdiction terminates as a result of a failure of its governing body to budget and appropriate sufficient funds to support that Participating Jurisdiction’s participation,and a sixty (60) calendar days’ notice is not possible, it shallgive the other Participating Jurisdictions written notice of the non-appropriation within ten (10) business days after the final budget is adopted by its governing body. B.Withdrawal for Cause. A Participating Jurisdiction may withdraw immediately in the event that the MFF, for reasons other than the actions or directions of that Jurisdiction’s MFF members, materially breaches the standard operating procedures in a manner that exposes that Participating Jurisdiction to significant additional legal liability, or the MFF or one or more other Participating Jurisdictions materially breach this IGA. Because each Participating Jurisdiction understands and acknowledges that its withdrawal from the MFF will cause significant disruption to the operation of the MFF, it shall not exercise this termination option unless the breach or exposure is significant, material, or of an on-going nature. C.Termination in Event of County Withdrawal. In the event that the County terminates its participation in this IGA, and after completion of the duties set forth in subsection D below, this IGA shall terminate as to all Participating Jurisdictions. The withdrawal of any Participating Jurisdiction other than the County shall not affect the validity and continuation of the IGA as to the other parties. D.Shutting Down Operations. Upon expiration of this IGA, or in the event of an earlier termination as to all the Participating Jurisdictions, whether by agreement of the Participating Jurisdictions or as a result of the County’s withdrawal, the remaining parties hereto shall cooperate in good faith to close the operation of the MFF in a manner that is safe and fiscally sound. E.Disposition of Equipment . In the event a Participating Jurisdiction terminates its participation or withdraws from the MFF pursuant to Section V(A) or (B), any uniforms purchased through grant funding and assigned to members of the terminating or withdrawing Participating Jurisdiction shall remain the property of theParticipating Jurisdiction. All equipment purchased through grant funding and assigned as MFF equipment will remain with the remaining Participating Jurisdictions. A terminating or withdrawing Participating Jurisdiction shall retain any personal equipment purchased for its members by the Participating Jurisdiction. In the event this IGA is terminated 4 pursuant to Section V(C), all equipment purchased for the MFFthrough grant funding shall be divided proportionally among the Participating Jurisdictions. VI. Insurance Each Participating Jurisdiction shall obtain and maintain at its own expense, during the entire term of such Participating Jurisdiction’s participation in this IGA, the following type(s) and amounts of insurance: a)Commercial General Liability in the amount of $2,000,000.00 combined, single limit Bodily Injury and Property damage; b) Commercial or Business automobile liability coverage for owned, non-owned and hired vehicles used in the performance of this IGA with limits in the amount of $1,000,000.00 combined single limit or $1,000,000.00 Bodily Injury, $1,000,000.00 Property Damage; c) Worker’s compensation coverage, including employees’ liability coverage, as required by law. A Participating Jurisdiction may self-insure as permitted by law. VII.Indemnification. To the extent permitted by law, each Participating Jurisdiction(as “indemnitor”) agrees to indemnify, defend and hold harmless each of the other Participating Jurisdictions (as “indemnitee(s)”) from and against any and all claims, losses, liability, costs, or expenses, including reasonable attorney’s fees (hereinafter collectively referred to as “claims”) arising out of bodily injury, including death, or property damage, but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee(s), are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees or volunteers. This indemnification shall survive the termination of this IGA or the termination of the participation of any of the parties. VIII. Compliance with Laws A.The Participating Jurisdictions shall comply with all applicable federal, state and local laws, rules, regulations, standards and Executive Orders, without limitation to those designated within this IGA. As to parties that are Indian tribes, an Executive Order shall only be deemed to be applicable if it specifically names “Indian tribes” as being within the scope of the Order, and the person issuing the Order has lawful authority to issue an Executive Order that would be lawfully binding upon Indian tribes. The laws and regulations of the State of Arizona shall govern the rights of the parties, the performance 5 of this IGA and any disputes hereunder. Any action relating to this IGA shall be brought in anycourt of competent jurisdiction. B.Notwithstanding any other provision contained herein, this IGA does not extend otherwise inapplicable state or federal law to any jurisdiction under the authority of an Indian tribe, nor shall this IGA or the MFF be used to enforce inapplicable state or federal law in such jurisdictions. IX.Non-Discrimination In the course of carrying out their duties pursuant to this IGA, the parties shall not discriminate against any employee, client or any other individual in any way because of that person’s age, race, creed, color, religion, sex, disability or national origin. The parties who are not Indian tribes shall comply with the provisions of Executive Order 75-5, as amended by Executive Order 99-4, which is incorporated into this IGA by reference, as if set forth in full herein. In performance of this IGA, those parties that are Indian Tribes shall comply with all anti-discrimination laws and ordinances specifically made applicable to Indian tribes by law. X.ADA In performance of this IGA, the parties shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. XI.Severability The provisions of this IGA are severable. If any provision of this IGA, or any application thereof to the parties or any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this IGA which can be given effect. XII. Conflict of Interest This contract is subject to cancellation for conflict of interest pursuant to A.R.S. § 38-511, the relevant provisions of which are incorporated herein by reference. XIII. Legal Authority. No party warrants to the other its legal authority to enter into this IGA. If a court, should declare that any party lacks authority to enter into this IGA, or any part of it, then the IGA, or parts of it affected by such order, shall be null and void, and no recovery may be had by any party against another for lack of performance or otherwise. 6 XIV. Workers’ Compensation. Each party who is not an Indian tribe shall comply with the notice of A.R.S. § 23-1022 (E). For purposes of A.R.S. § 23-1022, each party shall be considered the primary employer of all personnel currently or hereafter employed by that party, irrespective of the operations of protocol in place, and said party shall have the sole responsibility for the payment of Workers’ Compensation benefits or other fringe benefits of said employees. XV. No Third Party Beneficiaries. Nothing in the provisions of this IGA is intended to create duties or obligations to or rights in third parties not parties to this IGA or affect the legal liability of any party to the IGA by imposing any standard of care with respect to the maintenance of public facilities different from the standard of care imposed by law. XVI. Sovereign Immunity. Nothing in this IGA shall be construed as an express or implied waiver of the sovereign immunity of any party in any forum or jurisdiction. Provisions of this IGA shall apply to tribal jurisdictions only to the extent that they do not infringe on tribalsovereignty. XVII. Immigration Laws. A. The parties hereby warrant that they will at all times during the term of this IGA comply with all federal immigration laws applicable to each party’s employment of its employees, and with the requirements of A.R.S. § 23-214(A), if applicable(together the “State and Federal Immigration laws”). The parties shall further ensure that each subcontractor who performs any work for the party under this IGA likewise complies with the State and Federal Immigration Laws, as applicable to each party. B. Notwithstanding any other provision contained herein, Participating Jurisdictions shall not use this IGA or the MFF to enforce the State and Federal Immigration laws against, or within the jurisdiction of, any party that is an Indian tribe. Neither will Participating Jurisdictions conduct State and Federal immigration checks during an MFF response or activity within the jurisdiction of any party that is an Indian tribe without the express consent of that Indian tribe’s governing body, which is not to be inferred by the execution of this IGA, and which any party that is an Indian tribe reserves the right to withhold. XVIII. Entire Agreement. This document constitutes the entire agreement between the parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or 7 written, are hereby superseded. This IGA shall not be modified, amended, altered or extended except through a written amendment signed by the parties and recorded with the Pima County Recorder. XIX. Counterparts. This IGA may be executed in multiple counterpart form, with each such counterpart constituting a binding original agreement between and among the parties. 8 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. PIMA COUNTY:ATTEST: Sharon Bronson Date Chairman, Board of Supervisors Julie Castaneda Date Clerk of the Board APPROVED AS TO FORM Mark Napier Date Sheriff of Pima County Sean Holguin Date Deputy County Attorney, Pima County 9 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF ORO VALLEY ATTEST: Dr. Satish I. Hiremath Date Mayor of Oro Valley Michael Standish Date Town Clerk APPROVED AS TO FORM Danny Sharp Date Chief of Police, Oro Valley Tobin Sidles Date Town Attorney 10 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF SAHUARITA ATTEST: Tom Murphy Date Mayor of Sahuarita Lisa Cole Date Town Clerk APPROVED AS TO FORM Chief John Noland Date Chief of Police, Sahuarita Daniel J. Hochuli Date Sahuarita Town Attorney 11 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. CITY OF SOUTH TUCSON ATTEST: Ildefonso Green Date Mayor of South Tucson Veronica Moreno Date City Clerk APPROVED AS TO FORM Kevin Shonk Date Chief of Police, South Tucson Bobby Yu Date City Attorney 12 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF MARANA ATTEST: Ed Honea Date Mayor of Marana Jocelyn C. Bronson Date Town Clerk APPROVED AS TO FORM Chief Terry Rozema Date Chief of Police, Marana Frank Cassidy Date Marana Town Attorney 13 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. PASCUA YAQUI TRIBE ATTEST: Robert Valencia Date Tribal Council Chairman Mary Jane Buenamea Date Tribal Council Secretary APPROVED AS TO FORM Michael Valenzuela Date Chief of Police, Pascua Yaqui Tribe Laura Berglan Date Attorney General, Pascua Yaqui Tribe 14 In Witness Whereof, each Participating Jurisdiction has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TUCSON AIRPORT AUTHORITY ATTEST: Bonnie Allin Date President/CEO Tucson Airport Authority Linda Mabry Date Executive Assistant to the President APPROVED AS TO FORM John Ivanoff Date Director of Public Safety, Tucson Airport Police Department Sarah Meadows Date General Counsel, Tucson Airport Authority 15 -END OF DOCUMENT-    Town Council Regular Session Item # C. Meeting Date:03/07/2018   Requested by: Chris Cornelison Submitted By:Caroline Standiford, Legal Department:Town Manager's Office Information SUBJECT: Resolution No. (R)18-07, authorizing and approving a franchise agreement between the Town of Oro Valley and Comcast of Arizona, Inc. RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The existing agreement between the Town of Oro Valley and Comcast of Arizona, Inc. is expiring soon and a renewal is necessary for both the Town and Comcast to continue the ongoing contractual relationship under federal law. BACKGROUND OR DETAILED INFORMATION: On March 18, 2018, the existing license agreement between the Town and Comcast is set to expire. On September 5, 2007, Council approved Town Code Article 12-17 “Cable Franchise” which was drafted to spell out the Town’s expectations and new technical standards in the right-of-way. This new franchise agreement is updated to include a 10-year term and leaves other terms and revenue provisions of the expiring agreement intact. FISCAL IMPACT: N/A. SUGGESTED MOTION: I MOVE to adopt Resolution No. (R)18-07, authorizing and approving the license agreement between the Town of Oro Valley and Comcast of Arizona, Inc. Attachments (R)18-07 Franchise Agreement  Franchise Agreement  C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@E00BE56C\@BCL@E00BE56C.doc Oro Valley Town Attorney’s Office /ca/ 090707 RESOLUTION NO. (R)18-07 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING A FRANCHISE AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND COMCAST OF ARIZONA, INC WHEREAS,pursuant to federal and state law, the Town is authorized to grant one or more nonexclusive franchises to construct, operate, maintain and reconstruct Cable Television Systems within the limits of the Town; and WHEREAS,it has been determined to be in the best interest of the Town to enter into the Franchise Agreement, attached hereto as Exhibit “A”, between the Town of Oro Valley and Comcast of Arizona, Inc. and that the Mayor and Council authorize and approve the Agreement. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Town Council of the Town of Oro Valley, Arizona that the License Agreement between the Town of Oro Valley and Comcast of Arizona, Inc., attached hereto as Exhibit “A”, is hereby approved. NOW BE IT FURTHER RESOLVED that the Mayor and any other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as are necessary to execute and implement the terms of the License Agreement. PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona, this 7 th day of March, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date:Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@E00BE56C\@BCL@E00BE56C.doc Oro Valley Town Attorney’s Office /ca/ 090707 EXHIBIT “A” FRANCHISE AGREEMENT 1 CABLE TELEVISION FRANCHISE AGREEMENT BETWEEN THE TOWN OF ORO VALLEY, ARIZONA AND COMCAST OF ARIZONA, LLC. This Franchise Agreement (hereinafter, the “Agreement” or “Franchise Agreement”) is made between the Town of Oro Valley, Arizona (hereinafter, “Franchising Authority”) and Comcast of Arizona, LLC (hereinafter, “Grantee”). The Franchising Authority, having determined that the financial, legal, and technical ability of the Grantee is reasonably sufficient to provide the services, facilities, and equipment necessary to meet the future cable-related needs of the community, desires to enter into this Franchise Agreement with the Grantee for the construction, operation and maintenance of a Cable System on the terms and conditions set forth herein. SECTION 1 - Definition of Terms For the purpose of this Franchise Agreement, capitalized terms, phrases, words, and abbreviations shall have the meanings ascribed to them in the Cable Communications Policy Act of 1984, as amended from time to time, 47 U.S.C. §§ 521 et seq. (the “Cable Act”), unless otherwise defined herein. A.“Affiliate” when used in relation to any person, means another person who owns or controls, is owned or controlled by, or is under common ownership or control with, such person. B.“Basic Cable” is the lowest priced tier of Cable Service offered by Grantee that includes the retransmission of local broadcast television signals. C.“Cable Act” means the Cable Communications Policy Act of 1984 (Public Law No. 98-549, 47 USC 521 (Supp.)) as amended by the Cable Television Consumer Protection and Competition Act of 1992, as further amended by the Telecommunications Act of 1996 and as further amended or superseded. D.“Cable Services” shall mean (1) the one-way transmission to Subscribers of (a) video programming, or (b) other programming service, and (2) Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming service. E.“Cable System” shall mean the Grantee’s facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment that is designed to provide Cable Service which includes video programming and which is provided to multiple Subscribers within the Service Area. 2 F.“Customer” or “Subscriber” means a Person or user of the Cable System who lawfully receives Cable Service therefrom with the Grantee’s express permission. G.“FCC” means the Federal Communications Commission or successor governmental entity thereto. H.“Franchise” means the initial authorization, or renewal thereof, issued by the Franchising Authority, whether such authorization is designated as a franchise, agreement, permit, license, resolution, contract, certificate, ordinance or otherwise, which authorizes the construction and operation of the Cable System within the Franchise Area. I.“Franchise Agreement” or “Agreement” shall mean this Agreement and any amendments or modifications hereto. J.“Franchising Authority” or “Town” means the Town of Oro Valley, within the State of Arizona, or the lawful successor, transferee, or assignee thereof. K.“Franchise Area” means the present legal boundaries of the Franchising Authority as of the Effective Date, and shall also include any additions thereto, by annexation or other legal means. L.“Grantee” means Comcast of Arizona, LLC, or the lawful successor, transferee, or assignee thereof. M.“Gross Revenue” means any revenue directly received by the Grantee according to generally accepted accounting principles consistently applied, that would constitute a Cable Operator of the Cable System under the Cable Act, derived from the operation of the Cable System to provide Cable Services in any manner that requires use of the Public Ways in the Service Area. Gross Revenues include, but are not limited to, basic, expanded basic, and pay service revenues, revenues from installation and rental of converters. Gross Revenues do not include (i) revenue from sources excluded by law; (ii) revenue derived by Grantee from services provided to its Affiliates; (iii) late payment fees; (iv) charges other than those described above that are aggregated or bundled with amounts billed to Cable Service Subscribers such as charges for Broadband or Telephone services; (v) fees or taxes which are imposed directly on any Subscriber by any governmental unit or agency, and which are collected by the Grantee on behalf of a governmental unit or agency including the FCC User Fee; (vi) revenue which cannot be collected by the Grantee and are identified as bad debt, provided, that if revenue previously representing bad debt is collected, this revenue shall then at time of collection be included in Gross Revenues for the collection period; (vii) refundable deposits, investment income, programming launch support payments, or advertising sales commissions; and (viii) Internet services to the extent that such service is not considered to be a Cable Service as defined by law. 3 N."Person" means any natural person or any association, firm, partnership, joint venture, corporation, or other legally recognized entity, whether for-profit or not-for profit, but shall not mean the Franchising Authority. O."Public Way" shall mean the surface of, and the space above and below, any public street, highway, freeway, bridge, land path, alley, court, boulevard, sidewalk, parkway, way, lane, public way, drive, circle, or other public right-of-way, including, but not limited to, public utility easements, dedicated utility strips, or rights-of-way dedicated for compatible uses and any temporary or permanent fixtures or improvements located thereon now or hereafter held by the Franchising Authority in the Service Area which shall entitle the Franchising Authority and the Grantee to the use thereof for the purpose of installing, operating, repairing, and maintaining the Cable System. Public Way shall also mean any easement now or hereafter held by the Franchising Authority within the Service Area for the purpose of public travel, or for utility or public service use dedicated for compatible uses, and shall include other easements or rights-of-way as shall within their proper use and meaning entitle the Franchising Authority and the Grantee to the use thereof for the purposes of installing and operating the Grantee's Cable System over wires, cables, conductors, ducts, vaults, manholes, amplifiers, appliances, attachments, and other property as may be ordinarily necessary and pertinent to the Cable System. P."Service Area" means the present municipal boundaries of the Franchising Authority, and shall include any additions thereto by annexation or other legal means, subject to the exceptions in subsection 3.9. Q.“Standard Installation” is defined as 125 feet from the nearest tap, to the Subscriber’s terminal. R.“Video Service Provider” or “VSP” shall mean any entity using the public rights- of-way to provide multiple video programming services to subscribers, using a cable system. A VSP shall include but is not limited to any entity that provides cable services, multichannel multipoint distribution services and Internet Protocol based services. SECTION 2 - Grant of Authority 2.1.The Franchising Authority hereby grants to the Grantee a nonexclusive Franchise authorizing the Grantee to construct and operate a Cable System in the Public Ways within the Franchise Area, and for that purpose to erect, install, construct, repair, replace, reconstruct, maintain, or retain in any Public Way such poles, wires, cables, conductors, ducts, conduits, vaults, manholes, pedestals, amplifiers, appliances, attachments, and other related property or equipment as may be necessary or appurtenant to the Cable System, and to provide such services over the Cable System as may be lawfully allowed. 4 2.1.1 Subject to federal and state preemption, the provisions of this Franchise constitute a valid and enforceable contract between the parties. In the event of a conflict between any ordinance and this Franchise, the Franchise Agreement shall control. The material terms and conditions contained in this Franchise Agreement may not be unilaterally altered by the Franchising Authority through subsequent amendment to any ordinance, rule, regulation, or other enactment of the Franchising Authority, except in the lawful exercise of the Franchising Authority’s police power. 2.1.2 Notwithstanding any other provision of this Franchise, Grantee reserves the right to challenge provisions of any ordinance, rule, regulation, or other enactment of the Franchising Authority that conflicts with its contractual rights under this Franchise, either now or in the future. 2.2.Term of Franchise. The term of the Franchise granted hereunder shall be Ten (10) years, commencing upon the Effective Date of the Franchise, unless the Franchise is renewed or is lawfully terminated in accordance with the terms of this Franchise Agreement and the Cable Act. 2.3.Renewal. Any renewal of this Franchise shall be governed by and comply with the provisions of Section 626 of the Cable Act, as amended. 2.4.Reservation of Authority. Nothing in this Franchise Agreement shall (A) abrogate the right of the Franchising Authority to perform any public works or public improvements of any description, (B) be construed as a waiver of any codes or ordinances of general applicability promulgated by the Franchising Authority, or (C) be construed as a waiver or release of the rights of the Franchising Authority in and to the Public Ways. SECTION 3 – Construction and Maintenance of the Cable System 3.1.Permits and General Obligations. The Grantee shall be responsible for obtaining, at its own cost and expense, all generally applicable permits, licenses, or other forms of approval or authorization necessary to construct, operate, maintain or repair the Cable System, or any part thereof, prior to the commencement of any such activity. Construction, installation, and maintenance of the Cable System shall be performed in a safe, thorough and reliable manner using materials of good and durable quality. All transmission and distribution structures, poles, other lines, and equipment installed by the Grantee for use in the Cable System in accordance with the terms and conditions of this Franchise Agreement shall be located so as to minimize the interference with the proper use of the Public Ways and the rights and reasonable convenience of property owners who own property that adjoins any such Public Way. 5 3.2.Conditions of Street Occupancy. 3.2.1. New Grades or Lines. If the grades or lines of any Public Way within the Franchise Area are lawfully changed at any time during the term of this Franchise Agreement, then the Grantee shall, upon reasonable advance written notice from the Franchising Authority (which shall not be less than ten (10) business days) and at its own cost and expense, protect or promptly alter or relocate the Cable System, or any part thereof, so as to conform with any such new grades or lines. In the event that Franchise Authority requests relocation efforts to relocate above ground facilities from Grantee solely for aesthetic reasons, then Franchise Authority agrees to pay all costs associated with relocation. If public funds are available to any other user of the Public Way for the purpose of defraying the cost of any of the foregoing, the Franchising Authority shall notify Grantee of such funding and make available such funds to the Grantee. 3.2.2. Relocation at Request of Third Party. The Grantee shall, upon reasonable prior written request of any Person holding a permit issued by the Franchising Authority, move any structure, and/or temporarily move its wires to permit the moving of such structure; provided (i) the Grantee may impose a reasonable charge on any Person for the movement of its wires, and such charge may be required to be paid in advance of the movement of its wires; and (ii) the Grantee is given not less than ten (10) business days advance written notice to arrange for such temporary relocation or no less than one hundred twenty (120) days for a permanent relocation. 3.2.3. Restoration of Public Ways. If in connection with the construction, operation, maintenance, or repair of the Cable System, the Grantee disturbs, alters, or damages any Public Way, the Grantee agrees that it shall at its own cost and expense replace and restore any such Public Way to a condition reasonably comparable to the condition of the Public Way existing immediately prior to the disturbance. 3.2.4. Safety Requirements. The Grantee shall, at its own cost and expense, undertake all necessary and appropriate efforts to maintain its work sites in a safe manner in order to prevent failures and accidents that may cause damage, injuries or nuisances. All work undertaken on the Cable System shall be performed in substantial accordance with applicable FCC or other federal and state regulations. The Cable System shall not unreasonably endanger or interfere with the safety of Persons or property in the Franchise Area. 3.2.5. Trimming of Trees and Shrubbery. The Grantee shall have the authority to trim trees or other natural growth overhanging any of its Cable System in the Franchise Area so as to prevent contact with the Grantee’s wires, cables, or other equipment. All such trimming shall be done at the Grantee’s sole cost and expense. The Grantee shall be responsible for any damage caused by such trimming. 3.2.6. Aerial and Underground Construction. At the time of Cable System construction, if all of the transmission and distribution facilities of all of the 6 respective public or municipal utilities in any area of the Franchise Area are underground, the Grantee shall place its Cable Systems’ transmission and distribution facilities underground, provided that such underground locations are actually capable of accommodating the Grantee’s cable and other equipment without technical degradation of the Cable System’s signal quality. In any region(s) of the Franchise Area where the transmission or distribution facilities of the respective public or municipal utilities are both aerial and underground, the Grantee shall confer with Franchise Authority and defer to Franchise Authority recommendation on construction, of any new transmission and distribution facilities, or any part thereof, aerially or underground. Nothing in this Section shall be construed to require the Grantee to construct, operate, or maintain underground any ground-mounted appurtenances such as customer taps, line extenders, system passive devices, amplifiers, power supplies, pedestals, or other related equipment. 3.2.7. Undergrounding and Beautification Projects. In the event funding is available to all users of the Public Way for the purpose of relocation of aerial facilities underground as part of an undergrounding or neighborhood beautification project, Grantee shall be entitled to participate in the planning for relocation of its aerial facilities contemporaneously with other utilities. Grantee’s relocation costs shall be included in any computation of available project funding by the municipality or private parties. 3.2.8 Right of Abandonment. The Grantee shall in all cases have the right of abandonment of its property. SECTION 4 - Service Obligations 4.1.General Service Obligation. Whenever the Grantee shall receive a request for Cable Service from at least fifteen (15) residences within 1320 cable-bearing strand feet (one-quarter cable mile) of its trunk or distribution cable, it shall extend its Cable System to such Subscribers at no cost to said Subscribers for Cable System extension, other than the usual connection fees for all Subscribers provided that such extension is technically feasible, and if it will not adversely affect the operation, financial condition, or market development of the Cable System. The Grantee may elect to provide Cable Service to areas not meeting the above density standards at its discretion. The Grantee may impose an additional charge for any service installation requiring a drop in or line extension to a subject property in excess of the density requirement above and/or in excess of any standard installation distance. Any such additional charge shall be computed on a time plus materials basis to be calculated on that portion of the installation that exceeds the standards set forth herein. 4.2.Programming. The Grantee shall offer to all Customers a diversity of video programming services. 7 4.3.No Discrimination. The Grantee shall not discriminate or permit discrimination between or among any Persons in the availability of Cable Services or other services provided in connection with the Cable System in the Franchise Area. It shall be the right of all Persons to receive all available services provided on the Cable System so long as such Person’s financial or other obligations to the Grantee are satisfied. Nothing contained herein shall prohibit the Grantee from offering bulk discounts, promotional discounts, package discounts, or other such pricing strategies as part of its business practice. 4.4.New Developments. The Franchising Authority shall provide the Grantee with written notice of the issuance of building or development permits for planned developments within the Franchise Area requiring undergrounding of cable facilities. The Franchising Authority agrees to require the developer, as a condition of issuing the permit, to give the Grantee access to open trenches for deployment of cable facilities and at least ten (10) business days written notice of the date of availability of open trenches. Notwithstanding the foregoing, the Grantee shall not be required to utilize any open trench. SECTION 5 - Fees and Charges to Customers 5.1.All rates, fees, charges, deposits and associated terms and conditions to be imposed by the Grantee or any affiliated Person for any Cable Service as of the Effective Date shall be in accordance with applicable FCC’s rate regulations. Before any new or modified rate, fee, or charge is imposed, the Grantee shall follow the applicable FCC notice requirements and rules and notify affected Customers, which notice may be by any means permitted under applicable law. SECTION 6 - Customer Service Standards; Customer Bills; and Privacy Protection 6.1.Customer Service Standards. The Franchising Authority hereby adopts the customer service standards set forth in Part 76, §76.309 of the FCC’s rules and regulations, as amended. The Grantee shall comply in all respects with the customer service requirements established by the FCC. 6.2.Customer Bills. Customer bills shall be designed in such a way as to present the information contained therein clearly and comprehensibly to Customers, and in a way that (A) is not misleading and (B) does not omit material information. Notwithstanding anything to the contrary in Section 6.1, above, the Grantee may, in its sole discretion, consolidate costs on Customer bills as may otherwise be permitted by Section 622(c) of the Cable Act (47 U.S.C. §542(c)). 8 6.3.Privacy Protection. The Grantee shall comply with all applicable federal and state privacy laws, including Section 631 of the Cable Act and regulations adopted pursuant thereto. SECTION 7 - Oversight and Regulation by Franchising Authority 7.1.Franchise Fees. The Grantee shall pay to the Franchising Authority a franchise fee in an amount equal to five percent (5%) of annual Gross Revenues received from the operation of the Cable System to provide Cable Service in the Franchise Area; provided, however, that Grantee shall not be compelled to pay any higher percentage of franchise fees than any other Video Service Provider providing service in the Franchise Area. The payment of franchise fees shall be made on a quarterly basis and shall be due forty five (45) days after the close of each calendar quarter. In the event that the Grantee is required to pay a Franchise Application Fee in accordance with Oro Valley Code 12- 17-13, Grantee may offset the franchise renewal fee against any franchise fees due and payable to Franchising Authority on the first quarterly payment. Each franchise fee payment shall be accompanied by a report prepared by a representative of the Grantee showing the basis for the computation of the Franchise Fees paid during that period. 7.2.Franchise Fees Subject to Audit. 7.2.1. Upon reasonable prior written notice, during normal business hours at Grantee’s principal business office, the Franchising Authority shall have the right to inspect the Grantee’s financial records used to calculate the Franchising Authority’s franchise fees; provided, however, that any such inspection shall take place within two (2) years from the date the Franchising Authority receives such payment, after which period any such payment shall be considered final. 7.2.2. Upon the completion of any such audit by the Franchising Authority, the Franchising Authority shall provide to the Grantee a final report setting forth the Franchising Authority’s findings in detail, including any and all substantiating documentation. In the event of an alleged underpayment, the Grantee shall have thirty (30) days from the receipt of the report to provide the Franchising Authority with a written response agreeing to or refuting the results of the audit, including any substantiating documentation. Based on these reports and responses, the parties shall agree upon a “Finally Settled Amount.” For purposes of this Section, the term “Finally Settled Amount(s)” shall mean the agreed upon underpayment, if any, to the Franchising Authority by the Grantee as a result of any such audit. If the parties cannot agree on a “Final Settlement Amount,” the parties shall submit the dispute to a mutually agreed upon mediator within sixty (60) days of reaching an impasse. In the event an agreement is not reached at mediation, either party may bring an action to have the disputed amount determined by a court of law. 7.2.3. Any “Finally Settled Amount(s)” due to the Franchising Authority as a result of such audit shall be paid to the Franchising Authority by the Grantee within 9 thirty (30) days from the date the parties agree upon the “Finally Settled Amount.” Once the parties agree upon a Finally Settled Amount and such amount is paid by the Grantee, the Franchising Authority shall have no further rights to audit or challenge the payment for that period. The Franchising Authority shall bear the expense of its audit of the Grantee’s books and records. 7.3.Oversight of Franchise. In accordance with applicable law, the Franchising Authority shall have the right to, on reasonable prior written notice and in the presence of Grantee’s employee, periodically inspect the construction and maintenance of the Cable System in the Franchise Area as necessary to monitor Grantee’s compliance with the provisions of this Franchise Agreement. 7.4.Technical Standards. The Grantee shall comply with all applicable technical standards of the FCC as published in subpart K of 47 C.F.R. § 76. To the extent those standards are altered, modified, or amended during the term of this Franchise, the Grantee shall comply with such altered, modified or amended standards within a reasonable period after such standards become effective. The Franchising Authority shall have, upon written request, the right to obtain a copy of tests and records required to be performed pursuant to the FCC’s rules. 7.5.Maintenance of Books, Records, and Files. 7.5.1. Books and Records. Throughout the term of this Franchise Agreement, the Grantee agrees that the Franchising Authority may review the Grantee’s books and records regarding customer service performance levels in the Franchise Area to monitor Grantee’s compliance with the provisions of this Franchise Agreement, upon reasonable prior written notice to the Grantee, at the Grantee’s business office, during normal business hours, and without unreasonably interfering with Grantee’s business operations. All such documents that may be the subject of an inspection by the Franchising Authority shall be retained by the Grantee for a minimum period of three (3) years. 7.5.2. Proprietary Information. Notwithstanding anything to the contrary set forth in this Section, the Grantee shall not be required to disclose information which it reasonably deems to be proprietary or confidential in nature. The Franchising Authority agrees to treat any information disclosed by the Grantee as confidential and only to disclose it to those employees, representatives, and agents of the Franchising Authority that have a need to know in order to enforce this Franchise Agreement and who agree to maintain the confidentiality of all such information. The Grantee shall not be required to provide Customer information in violation of Section 631 of the Cable Act or any other applicable federal or state privacy law. For purposes of this Section, the terms “proprietary or confidential” include, but are not limited to, information relating to the Cable System design, customer lists, marketing plans, financial information unrelated to the calculation of franchise fees or rates pursuant to FCC rules, or other information that is reasonably determined by the Grantee to competitively sensitive. Grantee may make proprietary or confidential information available for inspection but not copying or 10 removal by the Franchise Authority’s representative. In the event that the Franchising Authority has in its possession and receives a request under a state “sunshine,” public records, or similar law for the disclosure of information the Grantee has designated as confidential, trade secret or proprietary, the Franchising Authority shall notify Grantee of such request and cooperate with Grantee in opposing such request. SECTION 8 – Transfer of Cable System or Franchise or Control of Grantee 8.1.Neither the Grantee nor any other Person may transfer the Cable System or the Franchise without the prior written consent of the Franchising Authority, which consent shall not be unreasonably withheld or delayed. No transfer of control of the Grantee, defined as an acquisition of 51% or greater ownership interest in Grantee, shall take place without the prior written consent of the Franchising Authority, which consent shall not be unreasonably withheld or delayed. No consent shall be required, however, for (i) a transfer in trust, by mortgage, hypothecation, or by assignment of any rights, title, or interest of the Grantee in the Franchise or in the Cable System in order to secure indebtedness, or (ii) a transfer to an entity directly or indirectly owned or controlled by Comcast Corporation. Within thirty (30) days of receiving a request for consent, the Franchising Authority shall, in accordance with FCC rules and regulations, notify the Grantee in writing of the additional information, if any, it requires to determine the legal, financial and technical qualifications of the transferee or new controlling party. If the Franchising Authority has not taken final action on the Grantee’s request for consent within one hundred twenty (120) days after receiving such request, consent shall be deemed granted. SECTION 9 - Insurance and Indemnity 9.1.Insurance. Throughout the term of this Franchise Agreement, the Grantee shall, at its own cost and expense, maintain Comprehensive General Liability Insurance and provide the Franchising Authority certificates of insurance designating the Franchising Authority and its officers, boards, commissions, councils, elected officials, agents and employees as additional insureds and demonstrating that the Grantee has obtained the insurance required in this Section. Such policy or policies shall be in the minimum amount of One Million Dollars ($2,000,000.00) for bodily injury or death to any one person, and One Million Dollars ($2,000,000.00) for bodily injury or death of any two or more persons resulting from one occurrence, and One Million Dollars ($2,000,000.00) for property damage resulting from any one accident. Such policy or policies shall be non-cancelable except upon thirty (30) days prior written notice to the Franchising Authority. The Grantee shall provide workers’ compensation coverage in accordance with applicable law. The Grantee shall indemnify and hold harmless the Franchising Authority from any workers compensation claims to which the Grantee may become subject during the term of this Franchise Agreement 11 9.2.Indemnification. The Grantee agrees to indemnify, save and hold harmless, and defend the Franchising Authority, its elected and appointed officials, officers, agents, boards and employees successors and assigns, from and against any liability for damages and for any liability or claims resulting from property damage or bodily injury (including accidental death), which arise out of the Grantee's construction, operation, or maintenance of its Cable System, provided that the Franchising Authority shall give the Grantee written notice of its obligation to indemnify the Franchising Authority within ten (10) days of receipt of a claim or action pursuant to this subsection. Notwithstanding the foregoing, the Grantee shall not indemnify the Franchising Authority for any damages, liability or claims resulting from the willful misconduct or negligence of the Franchising Authority. SECTION 10 - System Description and Service 10.1.System Capacity. During the term of this Agreement the Grantee’s Cable System shall be capable of providing a minimum of 120 channels of video programming with satisfactory reception available to its customers in the Franchise Area. 10.2.Service to Governmental and Institutional Facilities. The Franchising Authority acknowledges that complimentary services reflect a voluntary initiative on the part of Grantee. Grantee does not waive any rights it may have regarding complimentary services under federal law or regulation. Subject to applicable law, should Grantee elect to offset governmental complimentary services against franchise fees, Grantee shall first provide Franchising Authority with ninety (90) days’ prior notice. The Grantee, upon request, shall provide without charge, a Standard Installation, no more than three (3) boxes per building location, and one outlet of Basic Cable to those administrative buildings owned and occupied by the Franchising Authority, fire station(s), sheriff sub- station(s), and K-12 public school(s) that are passed by its Cable System. The Cable Service provided shall not be distributed beyond the originally installed outlet without authorization from the Grantee. The Cable Service provided shall not be used for commercial purposes, and such outlets shall not be located in areas open to the public. The Franchising Authority shall take reasonable precautions to prevent any use of the Grantee’s Cable System in any manner that results in any loss or damage to the Cable System. The Franchising Authority shall hold the Grantee harmless from any and all liability or claims arising out of the provision and use of Cable Service required by this subsection. The Grantee shall not be required to provide an outlet to such buildings where a non-Standard Installation is required, unless the Franchising Authority or building owner/occupant agrees to pay the incremental cost of any necessary Cable System extension and/or non-Standard Installation. If additional outlets of Basic Cable are provided to such buildings, the building owner/occupant shall pay the usual installation and service fees associated therewith. 12 SECTION 11 - Enforcement and Termination of Franchise 11.1.Notice of Violation or Default. In the event the Franchising Authority believes that the Grantee has not complied with the material terms of the Franchise, it shall notify the Grantee in writing with specific details regarding the exact nature of the alleged noncompliance or default. 11.2.Grantee’s Right to Cure or Respond. The Grantee shall have forty-five (45) days from the receipt of the Franchising Authority’s written notice: (A) to respond to the Franchising Authority, contesting the assertion of noncompliance or default; or (B) to cure such default; or (C) in the event that, by nature of the default, such default cannot be cured within the forty-five (45) day period, initiate reasonable steps to remedy such default and notify the Franchising Authority of the steps being taken and the projected date that the cure will be completed. 11.3.Administrative Hearing. In the event the Grantee fails to respond to the Franchising Authority’s notice or in the event that the alleged default is not remedied within forty-five (45) days of the date of the Franchising Authority’s notice outlined in Section 11.2, then the Franchising Authority shall schedule an administrative hearing, with a third party administrative officer, to investigate the alleged default with said hearing scheduled by Franchising Authority within thirty (30) business days from the notice/ remedy deadline. The Franchising Authority shall notify the Grantee in writing of the time, date and location of the administrative hearing. Each party shall be solely responsible for their respective costs associated with the administrative hearing process, and the cost of the administrative hearing officer shall be shared equally by the parties. 11.4.Enforcement. Subject to applicable federal and state law, in the event the Franchising Authority, after such administrative hearing, determines that the Grantee is in default of any material provision of the Franchise, the Franchising Authority may: 11.4.1. seek specific performance of any provision that reasonably lends itself to such remedy as an alternative to damages, or seek other equitable relief; or 11.4.2. in the case of a substantial default of a material provision of the Franchise, declare the Franchise Agreement to be revoked in accordance with the following: (i)The Franchising Authority shall give written notice to the Grantee of its intent to revoke the Franchise on the basis of a pattern of noncompliance by the Grantee, including two or more instances of substantial noncompliance with a material provision of the Franchise. The notice shall set forth with specificity the exact nature of the noncompliance. The Grantee shall have ninety (90) days from the receipt of such notice to object in writing and to state its reasons for such objection. In the event the Franchising Authority has not received a response from the Grantee or upon receipt of the response does not agree with the Grantee’s proposed remedy, it may then seek termination of the Franchise at a public hearing. The Franchising Authority shall cause to be served upon the 13 Grantee, at least ten (10) days prior to such public hearing, a written notice specifying the time and place of such hearing and stating its intent to request termination of the Franchise. (ii)At the designated hearing, the Franchising Authority shall give the Grantee an opportunity to state its position on the matter, present evidence and question witnesses, after which it shall determine whether or not the Franchise shall be terminated. The public hearing shall be on the record and a written transcript shall be made available to the Grantee within ten (10) business days. The decision of the Franchising Authority shall be in writing and shall be delivered to the Grantee by certified mail. The Grantee may appeal such determination to an appropriate court, which shall have the power to review the decision of the Franchising Authority “de novo” and to modify or reverse such decision as justice may require. 11.5.Technical Violation. The Franchising Authority agrees that it is not its intention to subject the Grantee to penalties, fines, forfeitures or revocation of the Franchise for so-called “technical” breach(es) or violation(s) of the Franchise, which shall include, but not be limited, to the following: 11.5.1. in instances or for matters where a violation or a breach of the Franchise by the Grantee was good faith error that resulted in no or minimal negative impact on the Customers within the Franchise Area; or 11.5.2. where there existed circumstances reasonably beyond the control of the Grantee and which precipitated a violation by the Grantee of the Franchise, or which were deemed to have prevented the Grantee from complying with a term or condition of the Franchise. SECTION 12 – Competitive Equity 12.1.Purposes. The Grantee and the Franchising Authority acknowledge that there is increasing competition in the video marketplace among cable operators, direct broadcast satellite providers, telephone companies, broadband content providers and others; new technologies are emerging that enable the provision of new and advanced services to Town residents; and changes in the scope and application of the traditional regulatory framework governing the provision of video services are being considered in a variety of federal, state and local venues. To foster an environment where video service providers using the public rights-of-way can compete on a competitively neutral and nondiscriminatory basis; encourage the provision of new and advanced services to Town residents; promote local communications infrastructure investments and economic opportunities in the Town; and provide flexibility in the event of subsequent changes in the law, the Grantee and the Franchising Authority have agreed to the provisions in this Section, and they should be interpreted and applied with such purposes in mind. 14 12.2. New Video Service Provider. 12.2.1. Notwithstanding any other provision of this Agreement or any other provision of law, if any Video Service Provider (i) enters into any agreement with the Franchising Authority to provide video services to subscribers in the Town, or (ii) otherwise begins to provide video services to subscribers in the Town (with or without entering into an agreement with the Franchising Authority), the Franchising Authority, upon written request of the Grantee, shall permit the Grantee to construct and operate its Cable System and to provide video services to subscribers in the Town under the same agreement and/or under the same terms and conditions as apply to the new VSP. The Grantee and the Franchising Authority shall enter into an agreement or other appropriate authorization (if necessary) containing the same terms and conditions as are applicable to the VSP within sixty (60) days after the Grantee submits a written request to the Franchising Authority. 12.2.2. If there is no written agreement or other authorization between the new VSP and the Franchising Authority, the Grantee and the Franchising Authority shall use the sixty (60) day period to develop and enter into an agreement or other appropriate authorization (if necessary) that to the maximum extent possible contains provisions that will ensure competitive equity between the Grantee and other VSPs, taking into account the terms and conditions under which other VSPs are allowed to provide video services to subscribers in the Town. 12.3 Subsequent Change in Law. If there is a change in federal, state or local law that provides for a new or alternative form of authorization for a VSP to provide video services to subscribers in the Town, or that otherwise changes the nature or extent of the obligations that the Franchising Authority may request from or impose on a VSP providing video services to subscribers in the Town, the Franchising Authority agrees that, notwithstanding any other provision of law, upon Grantee’s written request the Franchising Authority shall: (i) permit the Grantee to provide video services to subscribers in the Town on the same terms and conditions as are applicable to a VSP under the changed law; (ii) modify this Agreement to comply with the changed law; or (iii) modify this Agreement to ensure competitive equity between the Grantee and other VSPs, taking into account the conditions under which other VSPs are permitted to provide video services to subscribers in the Town. The Franchising Authority and the Grantee shall implement the provisions of this Section within sixty (60) days after the Grantee submits a written request to the Franchising Authority. Notwithstanding any provision of law that imposes a time or other limitation on the Grantee’s ability to take advantage of the changed law’s provisions, the Grantee may exercise its rights under this Section at any time, but not sooner than thirty (30) days after the changed law goes into effect. 12.4 Effect on This Agreement. Any agreement, authorization, right or determination to provide video services to subscribers in the Town under Sections 12.2 or 12.3 shall supersede this Agreement, and the Grantee, at its option, may terminate this Agreement or portions thereof, upon written notice to the Franchising Authority, without penalty or damages. 15 12.5 In the event a new federal or state level statutory or regulatory licensing scheme is enacted, Grantee shall have the right to notify the Licensing Authority of its election to participate in the federal or state licensing scheme in lieu of the continued performance of this License Agreement. This right may be exercised upon Grantee showing that another company has applied for such a federal or state license to serve all or a portion of the Town. SECTION 13 - Miscellaneous Provisions 13.1.Force Majeure. The Grantee shall not be held in default under, or in noncompliance with, the provisions of the Franchise, nor suffer any enforcement or penalty relating to noncompliance or default (including termination, cancellation or revocation of the Franchise), where such noncompliance or alleged defaults occurred or were caused by strike, riot, war, earthquake, flood, tidal wave, unusually severe rain or snow storm, hurricane, tornado or other catastrophic act of nature, labor disputes, failure of utility service necessary to operate the Cable System, governmental, administrative or judicial order or regulation or other event that is reasonably beyond the Grantee’s ability to anticipate or control. This provision also covers work delays caused by waiting for utility providers to service or monitor their own utility poles on which the Grantee’s cable or equipment is attached, as well as unavailability of materials or qualified labor to perform the work necessary. 13.2 Furthermore, the parties hereby agree that it is not the Grantee’s intention to subject the Grantor to penalties, fines, forfeiture or revocation of the Agreement for violations of the Agreement where the violation was a good faith error that resulted in no or minimal negative impact on the Subscribers within the Service Area, or where strict performance would result in practical difficulties and hardship to the Grantee which outweigh the benefit to be derived by the Grantor and/or Subscribers. 13.3.Notice. All notices shall be in writing and shall be sufficiently given and served upon the other party by hand delivery, first class mail, registered or certified, return receipt requested, postage prepaid, or by reputable overnight courier service and addressed as follows: To the Franchising Authority: Town of Oro Valley Attn: Town Manager 11000 N. La Canada Drive Oro Valley, AZ 85737 To the Grantee: 16 Comcast Cable Corporation Attn: Government Affairs Director 9602 S. 300 W. Sandy, UT 84070 with a copy to: Comcast Cable Attn.: Government Affairs Department 1500 Market Street Philadelphia, PA 19102 13.3.Entire Agreement. This Franchise Agreement, including all Exhibits, embodies the entire understanding and agreement of the Franchising Authority and the Grantee with respect to the subject matter hereof and supersedes all prior understandings, agreements and communications, whether written or oral. All ordinances or parts of ordinances that are in conflict with or otherwise impose obligations different from the provisions of this Franchise Agreement are superseded by this Franchise Agreement. 13.4.Severability. If any section, subsection, sentence, clause, phrase, or other portion of this Franchise Agreement is, for any reason, declared invalid, in whole or in part, by any court, agency, commission, legislative body, or other authority of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent portion. Such declaration shall not affect the validity of the remaining portions hereof, which other portions shall continue in full force and effect. 13.5.Governing Law. This Franchise Agreement shall be deemed to be executed in the State of Arizona and shall be governed in all respects, including validity, interpretation and effect, and construed in accordance with, the laws of the State of Arizona, as applicable to contracts entered into and performed entirely within the State. 13.6.Modification. No provision of this Franchise Agreement shall be amended or otherwise modified, in whole or in part, except by an instrument, in writing, duly executed by the Franchising Authority and the Grantee, which amendment shall be authorized on behalf of the Franchising Authority through the adoption of an appropriate resolution or order by the Franchising Authority, as required by applicable law. 13.7.No Third-Party Beneficiaries. Nothing in this Franchise Agreement is intended to confer third-party beneficiary status on any member of the public to enforce the terms of this Franchise Agreement. 13.8.No Waiver of Rights. Nothing in this Franchise Agreement shall be construed as a waiver of any rights, substantive or procedural, Grantee may have under federal or state law unless such waiver is expressly stated herein. 17 13.9 Effective Date. The effective date of this Franchise is the 7th day of March, 2018 pursuant to the provisions of applicable law. This Franchise shall expire on the 7th day of March, 2028 unless extended by the mutual agreement of the Parties. IN WITNESS WHEREOF, this Franchise Agreement has been executed by the duly authorized representatives of the parties as set forth below, as of the date set forth below: For Franchising Authority: TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM : Michael Stanish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: 18 For Comcast of Arizona, LLC: By:_______________________ Name: Richard C. Jennings Title: Regional Sr. Vice President – Cable Management Date: ______________________    Town Council Regular Session Item # D. Meeting Date:03/07/2018   Requested by: Shirley Kiel Submitted By:Shirley Kiel, Water Department:Water Information SUBJECT: Resolution No. (R)18-08, providing notice of intent to increase water rates for the Oro Valley Water Utility RECOMMENDATION: The Water Utility Commission and Water Utility staff recommend approval of Resolution No. (R)18-08, providing notice of intent to increase water rates for the Oro Valley Water Utility. EXECUTIVE SUMMARY: Pursuant to A.R.S. § 9-511.01, a municipality must adopt a notice of intent to increase water rates at least 60 days prior to the public hearing. The resolution sets in motion the public process by:  Making the Water Rates Analysis Report available for public review by placing a copy in the Town Clerk's Office and on the Water Utility's website. 1. Directing the Town Clerk to publish the resolution in a newspaper of general circulation at least 20 days prior to the public hearing. 2. Scheduling a public hearing for May 16, 2018 when the Council will consider adoption of the proposed rate increase. 3. Once the notice of intent is approved, the increase in rates that can be adopted may not exceed the rates shown in the Water Rates Analysis Report. The proposed increases are for the potable water base rates only. Approximately 88 percent of the Water Utility's customers utilize a 5/8-inch water meter and will realize an increase of $1.83 per month regardless of the volume of water used. For the average residential customer using 8,000 gallons of water, this would represent a 4.4 percent increase in their monthly water bill. BACKGROUND OR DETAILED INFORMATION: In accordance with the Town Council Water Policies, Water Utility staff review water In accordance with the Town Council Water Policies, Water Utility staff review water rates on an annual basis. The Water Utility Commission evaluates staff recommendations based on a water rates analysis to assure the recommendations meet Town policies and bond covenants. On February 20, 2018, the Commission voted to recommended approval of the water rates identified in the Preferred Financial Scenario and supported by the Water Rates Analysis Report dated Mach 2018. The Water Rates Analysis Report includes projections for five years; however, water rates are approved annually and only for the first year in the five-year projection period. The Preferred Financial Scenario meets all revenue requirements, cash reserve requirements, debt service coverage requirements and will provide for the overall financial health of the Water Utility. The proposed increases are for the potable water base rates only. Approximately 88 percent of the Water Utility's customers utilize a 5/8-inch water meter and will realize an increase of $1.83 per month regardless of the volume of water used. This rate design will increase revenue stability for the Water Utility. FISCAL IMPACT: There is no fiscal impact associated with adopting a notice of intent to increase water rates. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)18-08, providing notice of intent to increase water rates for the Oro Valley Water Utility. Attachments (R)18-08 Notice of Intent to Increase Water Rates  Water Rates Analysis Report  RESOLUTION NO. (R)18-08 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, PROVIDING NOTICE OF INTENT TO INCREASE WATER RATES FOR THE ORO VALLEY WATER UTILITY WHEREAS,pursuant to A.R.S. § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the residents within and without the Town’s corporate boundaries; and WHEREAS, pursuant to A.R.S. § 9-511,et seq., the Town finds it necessary to consider increasing water rates for the Oro Valley Water Utility; and WHEREAS, pursuant to A.R.S. § 9-511, et seq.,the Town is required to give a Notice of Intent at a regular Town Council meeting to increase water rates; and WHEREAS, the Town has completed a Water Rates Analysis Report, attached hereto as Exhibit “A”, which supports increasing water rates for the Oro Valley Water Utility; and WHEREAS,not less than twenty (20) days prior to the public hearing on the proposed rate increases, the Town shall cause to be published one time in a newspaper of general circulation within the Town’s boundaries, a Notice of Intent showing the date, time and place of the hearing. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: 1.This Resolution serves as the Notice of Intent, which is hereby publicly given, for the Town of Oro Valley to increase water rates. 2.A public hearing shall be held at the regular meeting of the Mayor and Council at 6:00 p.m. on May 16, 2018, in the Council Chambers of the Town Hall, Town of Oro Valley, 11000 North La Cañada Drive, Oro Valley, Arizona, to deliberate and vote on the proposed increases. 3.Exhibit “A”, attached hereto, be made available to the public in the Office of the Town Clerk and on the Town of Oro Valley Water Utility website for review prior to the public hearing. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7 th day ofMarch, 2018. 2 TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date:Date: EXHIBIT “A”    Town Council Regular Session Item # E. Meeting Date:03/07/2018   Requested by: Jose Rodriguez  Submitted By:Jose Rodriguez, Community Development & Public Works Department:Community Development & Public Works Information SUBJECT: Resolution No. (R)18-09, authorizing and approving an amendment to the Intergovernmental Agreement between Pima County and the Town of Oro Valley for the Joint Administration of Public Works Capital Improvement Projects RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: On February 3, 2016, the Town of Oro Valley approved Resolution No. (R)16-09, authorizing and approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and Pima County for Joint Administration of Public Works Capital Improvement Projects. This IGA allows qualified County and Town staff to partner together and assist one another to achieve completion of projects, as defined by Project Agreements. Pima County staff have been performing right-of-way services and securing new right-of-way and easements within Oro Valley for the La Cholla Boulevard project. This proposed amendment will provide guidance and clarity for conveyance of real property within the Town limits.   BACKGROUND OR DETAILED INFORMATION: On April 1, 2015, Town Council approved an Intergovernmental Agreement (IGA) with the Regional Transportation Authority of Pima County (RTA) to receive funds for the final segment of the La Cholla Boulevard widening improvement project.   During the design process, it became apparent that certain tasks can be performed by Pima County personnel at a lower cost than consultants. On March 1, 2016, Pima County and the Town of Oro Valley entered into an IGA (Approved IGA attached) allowing the sharing of resources between agencies and the execution of Project Agreements (Exhibit A) which outline the specifics and responsibilities of each agency. Agreements (Exhibit A) which outline the specifics and responsibilities of each agency. The proposed amendment to the IGA (attached) will provide guidance in the right-of-way services.   FISCAL IMPACT: The right-of-way services and acquisitions are funded by the RTA.   SUGGESTED MOTION: I MOVE to (approve / deny) Resolution No. (R)18-09, authorizing and approving an amendment to the Intergovernmental Agreement between Pima County and the Town of Oro Valley for the Joint Administration of Public Works Capital Improvement Projects.   Attachments (R)18-09  Exhibit A IGA Amendment  Approved IGA  C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@5C24A7C7\@BCL@5C24A7C7.doc Town of Oro Valley Attorney’s Office/ca/020209 RESOLUTION NO. (R)18-09 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND PIMA COUNTY FOR THE JOINT ADMINISTRATION OF PUBLIC WORK CAPITAL IMPROVEMENT PROJECTS TO CLARIFY THE AVAILABLE PROCESSES FOR PROPERTY ACQUISITIONS FOR THE ROADWAY IMPROVEMENTS ON LA CHOLLA BLVD, OVERTON TO TANGERINE WHEREAS, pursuant to A.R.S. § 11-952, the Town of Oro Valley and Pima County are authorized to enter into Intergovernmental Agreements for joint and cooperative action; and WHEREAS, pursuant to A.R.S. § 9-276, the Town is authorized to lay out, maintain, control and manage public roads within its jurisdictional boundaries; and WHEREAS,in February, 2016, the Intergovernmental Agreement for the joint administration of public work capital improvement projects between the Town and Pima County, was approved through Resolution No. (R) 16-09; and WHEREAS, the Town of Oro Valley and Pima County desire to amend the IGA to clarify the available processes for property acquisitions for the roadway improvements on La Cholla Blvd, Overton to Tangerine; and WHEREAS, it is in the best interest of the Town of Oro Valley to authorize and approve the amendment to the IGA between the Town of Oro Valley and Pima County to clarify the allowable contractor selection process for the roadway improvements on La Cholla Blvd, Overton to Tangerine. THEREFORE, BE IT RESOLVED, by the Mayor and Town Council of the Town of Oro Valley, Arizona that: 1.The amendment to the Intergovernmental Agreement, attached hereto as Exhibit “A” and incorporated herein by this reference, between the Town of Oro Valley and Pima County to clarify the allowable contractor selection process for the roadway improvements on La Cholla Blvd, Overton to Tangerine is hereby approved. C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@5C24A7C7\@BCL@5C24A7C7.doc Town of Oro Valley Attorney’s Office/ca/020209 2.The Mayor and any other administrative officials are hereby authorized to take such steps necessary to execute and implement the terms of the Intergovernmental Agreement. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7 th day ofMarch, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date Date C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@5C24A7C7\@BCL@5C24A7C7.doc Town of Oro Valley Attorney’s Office/ca/020209 EXHIBIT “A” 100950 / 00526120 / v3 Page 1 of 2 Pima County Department of Transportation Project: Joint Administration of Public Works Capital Improvement Projects—La Cholla, Overton to Tangerine Parties: Pima County & Town of Oro Valley Contract Number: CT-TR-16-232 Contract Amendment No.: 1 Original Contract Term:3/01/16-2/28/21 Original Amount:$ 5,000,000.00 Termination Date Prior Amendment:N/A Prior Amendments Amount:$0.00 Termination Date This Amendment:2/28/21 This Amendment Amount: $ 0.00 Revised Total Amount: $ 5,000,000.00 IGA AMENDMENT NUMBER 1 1.Background and Purpose . 1.1.Pima County (“County”) previously entered into an Intergovernmental Agreement (the “IGA”) with the Town of Oro Valley (“Town”), IGA number CT-TR-16-232, in order to make County’s and Town’s qualified personnel available to each other, as provided in specific Project Agreements, for Capital Project Services, including right-of-way services. Capitalized terms used in this Amendment have the meanings assigned in the IGA. 1.2.Under Section 5 of the IGA, the Sponsoring Agency is responsible for entering into third-party project- related contracts in its own name, and making all payments under those contracts, even if the Provider Agency is providing contract-administration and project-management services. 1.3.County and Town wish to clarify the available processes for property acquisitions. 2.Right-of-Way Services. A Project Agreement that calls for the Provider Agency to provide right-of-way acquisition services may specify that the Provider Agency will first acquire the real property in its own name and later convey it to the Sponsoring Agency after the Sponsoring Agency has reimbursed the Provider Agency for all its acquisition-related costs. If the Project Agreement allows this method to be used, it must specify what types of transactions may be handled in this fashion, and at what time the reimbursement(s) and reconveyance(s) are to occur. If a Project Agreement does not specifically allow this method to be used, the Provider Agency will provide standard right-of-way acquisition services, such as price negotiations and contract preparation, but will submit the resulting contract to the Sponsoring Agency for approval and payment. 3.Delegation of Authority. County and Town each hereby delegates to its Director, or the Agency’s signatory authority, the authority to execute on its behalf, in its role as the Provider Agency under a Project Agreement, all agreements for the acquisition of rights-of-way for the Sponsoring Agency, regardless of the acquisition price, and to execute deeds for the subsequent conveyance of those rights-of-way to the Sponsoring Agency. Each acquisition by Town acting as the Provider Agency must be approved by the appropriate authority at the County before the Town executes a binding agreement with the property owner for the acquisition. Acquisitions by the County acting as the Provider Agency need not be submitted to the Town for approval unless the acquisition price exceeds the appraised value by twenty-five (“25”) percent and twenty-five thousand dollars (“$25,000”). 4.All other portions of the IGA remain in full force and effect. 100950 / 00526120 / v3 Page 2 of 2 PIMA COUNTY:TOWN OF ORO VALLEY ________________________________________________________________________ Richard Elias, Chairman, Board of Supervisors Dr. Satish I. Hiremath, Mayor _____________________________________________ Date Date ATTEST:ATTEST: Julie Castaneda, Clerk of the Board Michael Standish, Town Clerk _________________________________________ Date Date The foregoing Amendment to the Agreement has been approved as to content and is hereby recommended to the Board by the undersigned. _________________________________________________________________________ Director,Director. Pima County Department of Transportation Oro Valley Department of Transportation ATTORNEY CERTIFICATION The foregoing Amendment to the Intergovernmental Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S. § 11-952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Agreement. PIMA COUNTY:TOWN OF ORO VALLEY ________________________________________________________________________ Deputy County Attorney Tobin Sidles, Director of Legal Services _________________________________________ Date Date    Town Council Regular Session Item # F. Meeting Date:03/07/2018   Requested by: Jose Rodriguez  Submitted By:Jose Rodriguez, Community Development & Public Works Department:Community Development & Public Works Information SUBJECT: Resolution No. (R)18-10, authorizing and approving Amendment No. 2 to the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley for improvements to La Cholla Boulevard: Overton Road to Tangerine Road RECOMMENDATION: Staff recommends approval.    EXECUTIVE SUMMARY: The Town of Oro Valley and the Regional Transportation Authority of Pima County (RTA) have entered into an Intergovernmental Agreement (IGA) to provide funding in the amount of $2 million for the design of La Cholla Boulevard from Overton Road to Tangerine Road. On January 4, 2017, an amendment to the original IGA was authorized by the Town of Oro Valley to add an additional $1.8 million to finalize the design and pay for the right-of-way acquisitions. This proposed amendment No. 2 will provide the funds needed to take the project into the construction phase. The roadway plans have been finalized and the right-of-way acquisitions underway followed by the utility relocation. Once the right-of-way and utility relocations have been completed, construction will begin and continue for approximately two years.    BACKGROUND OR DETAILED INFORMATION: On April 1, 2015, the Town of Oro Valley approved Resolution No. (R)15-26, authorizing the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley for the roadway design improvements to La Cholla Boulevard: Overton Road to Tangerine Road (Exhibit A). On January 4, 2017, the Town of Oro Valley approved Resolution No. (R)17-01, authorizing and approving an amendment to the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley to finalize the roadway design improvements and for the purchase of additional right-of-way identified in the design phase of the final segment from Overton Road to Tangerine Road. FISCAL IMPACT: The RTA will provide construction funds in the amount of $15,710,000, Pima County at $3,180,000 and Oro Valley at $800,000.   The breakdown of total project funding responsibilities are as follows:  The RTA - $19,510,000  (includes $3,800,000 for design and right of way) Pima County - $3,180,000 Oro Valley - $800,000 SUGGESTED MOTION: I MOVE to (approve / deny) Resolution No. (R)18-10, authorizing and approving amendment No.2 to the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley for the La Cholla Boulevard project.    Attachments (R)18-10 Resolution Amendment  IGA Amendment 2  IGA Exhibit A File  Original IGA  RESOLUTION NO. (R)18-10 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, AUTHORIZING AND APPROVING AMENDMENT NO. 2 TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY AND THE TOWN OF ORO VALLEY FOR ROAD IMPROVEMENTS TO LA CHOLLA BLVD FROM OVERTON ROAD TO TANGERINE ROAD WHEREAS, the Town of Oro Valley and the Regional Transportation Authority (RTA) may contract for services and enter into agreements with one another for joint or cooperative action pursuant to A.R.S. § 11-951, et seq.; and WHEREAS, pursuant to A.R.S. § 9-240(B)(3) to design, maintain, control and manage public roads within the boundaries of the Town; and WHEREAS, pursuant to A.R.S.§ 48-5301, et seq., the RTA is authorized to act as a regional taxing authority for the purpose of funding multi-modal transportation operations and improvements identified in the Regional Transportation Plan (“the Plan”) approved by the voters at the special election held in Pima County, Arizona, on May 16, 2006; and WHEREAS, a Regional Transportation Fund was established by the Arizona Legislature pursuant to A.R.S. § 48-5307 to be the repository for those funds collected for the purpose of funding the transportation projects identified by the Plan; and WHEREAS, the Authority is authorized by A.R.S. §§ 48-5304 (16) and 48-5308 to administer and distribute the regional transportation funds to the member of the Authority and to sell bonds in furtherance of that purpose to fund those projects or programs identified in the Plan; and WHEREAS, the Town approved the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley through Resolution No. (R)15-26 on April 1, 2015; and WHEREAS, the parties wish to amend the Agreement to increase the total amount of the Agreement to $19,510,000 which would provide an additional $15,710,000 to complete the road improvements to La Cholla Blvd from Overton Road to Tangerine Road; and WHEREAS, it is in the best interest of the Town of Oro Valley to approve Amendment No. 2 to the Intergovernmental Agreement, attached hereto as Exhibit “A”, with the Regional Transportation Authority of Pima County to increase the total amount of the Agreement to $19,510,000 which would provide an additional $15,710,000 to complete the road improvements to La Cholla Blvd from Overton Road to Tangerine Road. NOW, THEREFORE, BE IT RESOLVED,by the Mayor and Council of the Town of Oro Valley, Arizona that Amendment No. 2 to the Intergovernmental Agreement, attached hereto as Exhibit “A”, by the Regional Transportation Authority and the Town of Oro Valley is hereby approved. NOW, BE IT FURTHER RESOLVED that the Mayor and any other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as are necessary to execute and implement the terms of the Intergovernmental Agreement. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7 th day ofMarch, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date Date EXHIBIT “A” TOWN OF ORO VALLEY AMENDMENT TO INTERGOVERNMENTAL AGREEMENT RECORDED IN PROJECT: La Cholla Blvd: Overton Rd to Tangerine Rd TIP No. 87.03 RTA Ballot No. 04 PARTIES: Town of Oro Valley AMENDMENT NO. 2 ORIGINAL TERM: 11-19 07 ORIGINAL AMOUNT:$2,000,000 CURRENT TERMINATION DATE:PRIOR AMENDED AMOUNT $3,800,000 AMENDED TERMINATION DATE: AMOUNT THIS AMENDMENT $15,710,000 NEW AMENDED TOTAL $19,510,000 AMENDMENT NUMBER WHEREAS, the Regional Transportation Authority of Pima County (RTA) has entered into an Intergovernmental Agreement (IGA Number)on April 1, 2015 with the Town of Oro Valley to provide funding for the La Cholla Blvd – Tangerine to Overton project; and, WHEREAS, the parties increased the total amount of the Agreement by $1,800,000 to finalize the right-of-way phase and design for the roadway improvements through approval of Amendment Number 1; and, WHEREAS, the parties are prepared to enter the final phase of the project and begin construction of La Cholla Blvd: Overton Road to Tangerine Road and wish to increase the total amount of the Agreement by $15,710,000 to complete the project; and, NOW, THEREFORE, the Agreement is amended as follows: 1.CHANGE:Exhibit A attached hereto and incorporated herein by reference increase RTA funding to finalized project and complete the construction phase of the La Cholla Blvd – Tangerine to Overton RTA Project ID 04_b From:"$3,800,000” To:"$19,510,000" CHANGE:Section 4 of the AGREEMENT, Responsibilities of the Lead Agency. is amended, adding the following: k. The Lead Agency shall adhere to the RTA Administrative Code, including the requirements for a Project Charter (where applicable), a Project Closeout Meeting (Roadway Element Projects) and reimbursement limits. l.Prior to any construction bid solicitation, the Lead Agency shall provide a complete set of Project documents to the RTA, including all plans and specifications, the engineer’s cost estimate, and a listing of all funding sources. The Project may not be advertised prior to written confirmation from the RTA that the Project is compliant with RTA requirements, and that funding is available for the Project. m. All right of way remnants from properties acquired with Project funds shall be disposed of in accordance with RTA Policy. All proceeds from the disposal shall be returned to the RTA for expenditure on RTA eligible expenses. In the event the disposal of the property occurs after the Project is completed, the funds shall be returned to the RTA for reallocation to other projects. This subsection shall survive termination of this Agreement The effective date of this Amendment shall be December 5, 2016. All other provisions not specifically changed by this Amendment shall remain in full force and effect. In Witness Whereof, the Regional Transportation Authority of Pima County has caused this Amendment to be executed by its Chair of the Board and attested by the Executive Director, and the Town of Oro Valley has caused this Amendment to the Agreement to be executed by the Mayor of the Town of Oro Valley and attested by its Town Clerk. REGIONAL TRANSPORTATION AUTHORITY Chair of the Board Date ATTEST: Executive Director Date TOWN OF ORO VALLEY Dr. Satish Hiremath, Mayor Date ATTEST: Michael Standish, Town Clerk Date ATTORNEY CERTIFICATION The foregoing Amendment to the Agreement by and between the Regional Transportation Authority of Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S. 11- 952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Agreement represented by the undersigned. Regional Transportation Authority of Pima County Thomas Benavidez, Attorney for the Authority Date Town of Oro Valley Tobin Sidles, Legal Services Director Date Regional Transportation Authority of Pima County Exhibit:A Item:1 RTA Resolution:2018 1 .TIP Project Number:####RTA Ballot:04 RTA Project ID:04_b 2 .Sponsor: 3 .I 4 .RTA Plan Sub-Element (If Applicable): 5 .Project Name: 6 .Work Phase Covered by the Exhibit:Planning/Design: Wildlife Design: Right of Way: Construction:15,710,000$ Operations: 7 .Project Manager Information (person responsible for Status Reports): Name: Mailing Address City, ST Zipcode 85704 Telephone Number: Fax Number: Email Address: 8 .Authorized Representative(s) (will sign & submit pay requests): Name: Mailing Address City, ST Zipcode 85704 Telephone Number: Fax Number: Email Address: Name: Mailing Address City, ST Zipcode 85704 Telephone Number: Fax Number: Email Address: 9 . 10 . 11 . 12 .Project Budget by Funding Source,RTA Non-RTA Total Total Project Funding Expected by Phase. Planning/Design = 6,600,000$ -$ 6,600,000$ Right of Way = 3,000,000$ -$ 3,000,000$ Construction = 32,633,000$ 6,100,000$ 38,733,000$ Operations = -$ -$ -$ Total = 42,233,000$ 6,100,000$ 48,333,000$ 13 .Project Budget by Funding Source,RTA Non-RTA Total This Exhibit: Planning/Design = -$ -$ -$ Right of Way = -$ -$ -$ Construction = 11,850,000$ 3,860,000$ 15,710,000$ Operations = -$ -$ -$ Total = 11,850,000$ 3,860,000$ 15,710,000$ 14 .Funding Sources (current year dollars): Total Funding Required Total Funding, This Exhibit RTA 11,850,000$ 11,850,000$ STP -$ -$ 12.6% Funds 3,860,000$ 3,860,000$ 2.6% Funds -$ -$ Impact Fees - Pima County 3,180,000$ Bond Funds -$ -$ General Fund -$ -$ Fare Box Revenue -$ -$ FTA Funds -$ -$ Other (Oro Valley Impact Fees)800,000$ Total Funding Sources:19,690,000$ 15,710,000$ 15 .Estimated completion date of work funded by this IGA, and duration:08/30/2020 Total maximum amount of Authority funding allowed for the Project or Project component to-date, including this exhibit. (If this is an amendment to an existing contract, please give the requested amended total. 15,710,000$ This project is for contstruction of the La Cholla Blvd.corridor from Overton to Tangerine.It is anticipated that this will be a 24 month long project. (520) 229-4873 (520) 742-1022 chuelle@orovalleyaz.gov 11000 N. La Cañada Drive Jose Rodriguez, Engineering Division Manager AZ Narrative Description of Project Scope, including improvements to be made and project intent (discuss how project will address problematic areas): Total maximum amount of Authority funding allowed for the Project or Project Component, under this Exhibit:15,710,000$ (520) 742-1022 jrodriguez@orovalleyaz.gov Aimee Ramsey, Assistant Director 11000 N. La Cañada Drive Roadway RTA Plan Element: Oro Valley La Cholla Blvd. - Tangerine to Overton Oro Valley AZ Oro Valley AZ Oro Valley (520) 229-4874 (520) 742-1022 aramsey@orovalleyaz.gov Cheryl Hulle, Sr. Civil Engineer 11000 N. La Cañada Drive (520) 229-4872 1 of 1    Town Council Regular Session Item # 1. Meeting Date:03/07/2018   Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: FISCAL YEAR 2017/18 MID-YEAR FINANCIAL UPDATE RECOMMENDATION: This item is for information only. EXECUTIVE SUMMARY: In the General Fund (see Attachment A), revenues collected through December totaled $18.6 million or 51.1% of the budget amount of $36.3 million. Year-to-date expenditures through December totaled $16.7 million or 45.4% of the budget amount of $36.7 million. In the Highway Fund (see Attachment B), revenues collected through December totaled $1.7 million or 45.0% of the budget amount of $3.8 million. Year-to-date expenditures through December totaled $1.8 million or 36.0% of the budget amount of $4.9 million. In the Bed Tax Fund (see Attachment C), revenues collected through December totaled $620,243 or 54.6% of the budget amount of $1.1 million. Year-to-date expenditures through December totaled $592,354 or 47.2% of the budget amount of $1.3 million. In the Community Center Fund (see Attachments D-1, D-2 and D-3), revenues collected through December totaled $3.0 million or 46.6% of the budget amount of $6.5 million. Year-to-date expenditures through December totaled $3.3 million or 50.9% of the budget amount of $6.5 million. In the Water Utility Fund (see Attachment E), revenues collected through December totaled $9.2 million or 60.0% of the budget amount of $15.4 million. Year-to-date expenses through December totaled $9.1 million or 48.2% of the budget amount of $19.0 million. In the Stormwater Utility Fund (see Attachment F), revenues collected through December totaled $691,782 or 49.3% of the budget amount of $1.4 million. Year-to-date expenses through December totaled $470,883 or 36.1% of the budget amount of $1.3 million. BACKGROUND OR DETAILED INFORMATION: GENERAL FUND Attachment A shows General Fund revenues and expenditures through December, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows: Revenues                                                     $37,421,951 Less: Expenditures                                               ($36,157,309) Less: Council-Approved Use of Contingency:    -Regional Municipalities     Veteran's Treatment Court                             ($75,000)    Approved July 5, 2017 Estimated Increase in Fund Balance $ 1,189,642 General Fund Revenues  Local sales tax collections in the General Fund total $9.3 million or 54.3% of the budget amount of $17.2 million. These revenues are estimated to come in over budget by about $1.1 million or 6.4% based on observed trends primarily in construction and utility sales tax. Please see Attachment H for a monthly, year-over-year tracking of General Fund local sales tax collections, including construction and utility sales tax.  License and permit revenues total $1.3 million or 64.3% of the budget amount of $2.1 million. These revenues are estimated to come in over budget by about $378,000 or 18.3% based on current trends and updated forecasts for residential and commercial permitting activity through the remainder of the fiscal year. State shared revenues total $5.8 million or 49.7% of the budget amount of $11.6 million. These revenues are estimated to come in slightly under budget, by about $96,000 or 0.8%, due to state-shared income and vehicle license taxes.    Charges for Services revenues total $1.0 million or 46.9% of the budget amount of $2.2 million. These revenues are estimated to come in slightly under budget, by about $33,000 or 1.5%, based on trending actual collections through year-end.   Interest income revenues reflect a loss of about $39,000 through December. Rising interest rates have caused increased volatility in the Town's investment portfolio. While this may cause temporary fluctuation as market values decline due to rising yields (market values move inversely to the direction of interest rates), this volatility tends to average out over longer periods of time as funds are invested at higher yields. For FY 17/18, these revenues are estimated to come in under budget by about $77,000 or 75.2%.  about $77,000 or 75.2%.  State grant revenues are estimated to come in under budget by about $98,000 or 41.8%. This is due to grant capacity that will not be utilized, and is offset with corresponding reductions in budgeted grant expenditures.   Federal grant revenues are estimated to come in under budget by about $36,000 or 7.6%, based on actual and projected proceeds through year-end. Other intergovernmental revenues are estimated to come in under budget by about $113,000 or 6.3%. Of this amount, $50,000 was capacity for a potential school resource officer at Leman Academy that will not be utilized. The remainder is due primarily to projected transit reimbursements from the Regional Transportation Authority (RTA).  Miscellaneous revenues are estimated to come in over budget by about $60,000 or 25.8% due to in-lieu income. Please note that all year-end estimates are subject to change. General Fund Expenditures  Expenditures are projected to come in under budget by about $568,000 or 1.5%. This is due to estimated personnel savings, capital savings for grant capacity that will not be utilized, and a budgeted transfer of $275,000 to the Highway Fund, which will not be necessary this fiscal year. Please note all figures are subject to change. HIGHWAY FUND Highway Fund Revenues  State shared highway user funds total $1.6 million or 48.6% of the budget amount of $3.4 million. These revenues are estimated to come in on budget at this time. As noted in the General Fund expenditure discussion above, the $275,000 budgeted transfer to the Highway Fund will not be necessary this fiscal year.  State grant revenues are estimated to come in slightly over budget by about $14,000 or 14.0%, due to estimated reimbursements for contract administration of Pima Association of Governments and RTA-funded roadway widening projects.   Interest income revenues are estimated to come in under budget by about $6,000 or 16.3%. Please reference the discussion on interest income revenues in the General Fund notes above. License and permit revenues total $18,227 or 32.0% of the budget amount of $57,000. These revenues are estimated to come in under budget by about $13,000 or 22.5%, based on trending actual collections through year-end. Please note that all year-end estimates are subject to change. Highway Fund Expenditures Expenditures are projected to come in under budget by about $595,000 or 12.0%. These savings are due primarily to the new Pima County property tax for roads, which will cover the Town's residential spring surface treatments. Please note this figure is subject to change. BED TAX FUND Bed Tax Fund Revenues Bed tax revenues total $620,535 or 55.1% of the budget amount of $1.1 million. These revenues are estimated to come in over budget by about $153,000 or 13.6%, based on current trends. Interest income revenues reflect a loss of about $300 through December, and are estimated to come in under budget by about $5,200 or 65.0%. Please reference the discussion on interest income revenues in the General Fund notes above. Please note all year-end estimates are subject to change. Bed Tax Fund Expenditures  Expenditures are estimated to come in over budget by about $6,300 or 0.5%. This is due to tennis court improvements at the Community Center, which are partially offset with expected operations & maintenance savings in the fund. Please note this overage is more than offset by projected bed tax revenues, as noted above.  COMMUNITY CENTER FUND Attachment D-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from Troon and Town-managed operations. Attachment D-2 shows the monthly line item detail for the Troon-managed operations, specifically revenues and expenditures associated with the golf, tennis, and food and beverage operations. The totals in the revenue and expenditure categories in Attachment D-2 tie to the Contracted Operating Revenues and Expenditures in Attachment D-1. Attachment D-3 shows the revenues and expenditures for the Troon-managed food and beverage operations only.  Community Center Fund Revenues  Local sales tax revenues from the dedicated half-cent sales tax total $1.1 million or 46.0% of the budget amount of $2.3 million. These revenues are estimated to come in on budget at this time. Contracted operating revenues from Troon total $1.5 million, or 44.5% of the budget amount of $3.4 million. These revenues are estimated to come in over budget by about $70,000 or 2.1%, based on Troon's forecast through the remainder of the fiscal year. Town operating revenues total $437,912 or 56.3% of the budget amount of $777,580. These revenues are estimated to come in over budget by about $122,000 or 15.7%, due to member dues, facility rental income and swim team revenues. Community Center Fund Expenditures  Contracted operating expenditures from Troon total $2.8 million or 53.1% of the budget amount of $5.2 million. These expenditures are estimated to come in over budget by about $106,000 or 2.0%, due to increased water costs as a result of warm, dry weather.   Town operating expenditures total $515,317 or 50.0% of the budget amount of $1.0 million. These expenditures are projected to come in over budget by about $36,000 or 3.5%, due to estimated personnel costs to meet the programming needs of the facility. Staff will continue close monitoring of these expenditures, adjusting future budget capacity accordingly. Please note this overage is more than offset by our projected overage in operating revenues, as noted above. Capital outlay totals $29,464, due to cart path improvements. Capital expenditures are projected to come in on budget at this time. Year-end expenditure estimates include the annual loan repayment of $120,000 to the General Fund. WATER UTILITY FUND Water Utility Fund Revenues  Charges for services revenues total $1.8 million or 56.7% of the budget amount of $3.2 million. These revenues are estimated to come in over budget by about $40,000 or 1.3%, based on current trends. Interest income revenues reflect a loss of about $29,000 through December, and are estimated to come in under budget by about $86,000 or 92.5%. Please reference the discussion on interest income revenues in the General Fund notes above. Water sales revenues total $7.4 million or 61.5% of the budget amount of $12.1 million. These revenues are estimated to come in over budget by about $1.2 million or 9.8%, based on current trends.  Please note all year-end estimates are subject to change.   Water Utility Fund Expenses   Expenses are estimated to come in under budget by about $66,000 or 0.3% due to personnel savings. Please note this estimate is subject to change. STORMWATER UTILITY FUND Stormwater Utility Fund Revenues  Revenues are estimated to come in slightly over budget, by about $3,000 or 0.2%, due to interest income earned on funds invested with the state's Local Government Investment Pool.   Stormwater Utility Fund Expenses  Expenses are estimated to come in under budget by $50,000 or 3.8%, due to anticipated savings in capital infrastructure projects. Please note this estimate is subject to change. Please see Attachments A, B, and C for additional details on the General Fund, Highway Fund and Bed Tax Fund. See Attachments D-1, D-2 and D-3 for additional details on the Community Center Fund. See Attachment E for additional details on the Water Utility Fund and Attachment F for additional details on the Stormwater Utility Fund. See Attachment G for a fiscal year-to-date consolidated summary of all Town Funds. See Attachment H for a breakdown of monthly, year-over-year local sales tax collections for the General Fund.   FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for information only. Attachments Attachment A - General Fund  Attachment B - Highway Fund  Attachment C - Bed Tax Fund  Attachment D-1 Community Center Fund  Attachment D-2 Troon Cash Flow  Attachment D-3 Troon F&B  Attachment E - Water Utility Fund  Attachment F - Stormwater Utility Fund  Attachment G - Summary All Funds  Attachment H - Gen Fund Local Sales Tax  ATTACHMENT A December YTD Financial Status General Fund % Budget Completion through December --- 50% % Actuals YE % Variance to Budget to Budget REVENUES: LOCAL SALES TAX 9,317,588 17,164,573 54.3% 18,266,587 6.4% LICENSES & PERMITS 1,325,600 2,063,121 64.3% 2,441,107 18.3% FEDERAL GRANTS 215,417 471,342 45.7% 435,452 -7.6% STATE GRANTS 43,501 234,760 18.5% 136,700 -41.8% STATE/COUNTY SHARED 5,779,130 11,636,928 49.7% 11,540,562 -0.8% OTHER INTERGOVERNMENTAL 731,497 1,793,360 40.8% 1,680,398 -6.3% CHARGES FOR SERVICES 1,037,618 2,210,453 46.9% 2,177,451 -1.5% FINES 60,111 120,000 50.1% 120,000 0.0% INTEREST INCOME (38,837) 103,000 -37.7% 25,591 -75.2% MISCELLANEOUS 96,000 233,000 41.2% 293,103 25.8% TRANSFERS IN - 305,000 0.0%305,000 0.0% TOTAL REVENUES 18,567,625 36,335,537 51.1% 37,421,951 3.0% % Actuals YE % Variance to Budget to Budget EXPENDITURES: COUNCIL 106,147 214,759 49.4% 214,759 0.0% CLERK 292,973 485,098 60.4% 485,098 0.0% MANAGER 387,295 844,708 45.8% 828,524 -1.9% HUMAN RESOURCES 157,357 375,790 41.9% 375,790 0.0% FINANCE 364,757 810,006 45.0% 791,119 -2.3% INFORMATION TECHNOLOGY 997,517 2,189,939 45.6% 2,176,693 -0.6% GENERAL ADMINISTRATION 789,207 1,682,216 46.9% 1,682,216 0.0% LEGAL 339,577 779,670 43.6% 749,302 -3.9% COURT 405,693 874,282 46.4% 874,282 0.0% COMM. DEV. & PUBLIC WORKS 2,187,701 4,893,469 44.7% 4,918,282 0.5% PARKS & RECREATION 1,526,274 3,667,092 41.6% 3,554,542 -3.1% POLICE 7,642,238 17,108,674 44.7% 16,982,034 -0.7% TRANSFERS OUT 1,465,815 2,799,668 52.4%2,524,668 -9.8% TOTAL EXPENDITURES 16,662,552 36,725,371 45.4% 36,157,309 -1.5% SURPLUS / (DEFICIT) 1,905,073 (389,834) 1,264,642 BEGINNING FUND BALANCE 13,403,214 Plus: Surplus / (Deficit)1,264,642 Less: Approved Use of Contingency Reserves During FY 17/18: Regional Municipalities Veteran's Treatment Court (75,000) ENDING FUND BALANCE **14,592,856 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2017/2018 Year End Estimate * Budget Year End Estimate * Actuals thru 12/2017 Actuals thru 12/2017 Budget F:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Dec FY 18 Monthly Report 2/22/2018 ATTACHMENT B December YTD Financial Status FY 2017/2018 % Budget Completion through December --- 50% Actuals thru 12/2017 Budget % Actuals to Budget Year End Estimate * YE % Variance to BudgetREVENUES: LICENSES & PERMITS 18,227 57,000 32.0% 44,148 -22.5% STATE GRANTS 62,578 100,000 62.6% 114,012 14.0% STATE/COUNTY SHARED 1,633,825 3,363,581 48.6% 3,363,581 0.0% INTEREST INCOME 8,110 36,994 21.9% 30,964 -16.3% MISCELLANEOUS 2,164 2,000 108.2% 3,103 55.2% TRANSFERS IN - 275,000 0.0%- -100.0% TOTAL REVENUES 1,724,904 3,834,575 45.0% 3,555,808 -7.3% Actuals thru 12/2017 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: ADMINISTRATION 353,079 741,063 47.6% 741,063 0.0% TRANSPORTATION ENGINEERING 376,361 661,582 56.9% 839,699 26.9% PAVEMENT MANAGEMENT 392,605 1,638,078 24.0% 1,036,707 -36.7% STREET MAINTENANCE 512,578 1,064,607 48.1% 1,039,437 -2.4% TRAFFIC ENGINEERING 147,426 844,547 17.5%698,038 -17.3% TOTAL EXPENDITURES 1,782,048 4,949,877 36.0% 4,354,944 -12.0% SURPLUS / (DEFICIT) (57,145) (1,115,302) (799,136) BEGINNING FUND BALANCE 1,350,903 Plus: Surplus / (Deficit)(799,136) ENDING FUND BALANCE **551,767 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision Highway Fund F:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Dec FY 18 Monthly Report 2/22/2018 ATTACHMENT C December YTD Financial Status % Budget Completion through December --- 50% % Actuals YE % Variance to Budget to Budget REVENUES: BED TAXES 620,535 1,126,955 55.1% 1,279,940 13.6% INTEREST INCOME (292) 8,011 -3.6%2,802 -65.0% TOTAL REVENUES 620,243 1,134,966 54.6% 1,282,742 13.0% % Actuals YE % Variance to Budget to Budget EXPENDITURES: ECONOMIC DEVELOPMENT 367,335 844,158 43.5% 850,481 0.7% TRANSFERS OUT 225,019 410,019 54.9%410,019 0.0% TOTAL EXPENDITURES 592,354 1,254,177 47.2% 1,260,500 0.5% SURPLUS / (DEFICIT) 27,888 (119,211) 22,242 BEGINNING FUND BALANCE 462,611 Plus: Surplus / (Deficit)22,242 Less: Approved Use of Contingency Reserves During FY 17/18: Tohono Chul Park Financial Participation Agreement (250,000) ENDING FUND BALANCE **234,853 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2017/2018 Year End Estimate * Budget Year End Estimate * Bed Tax Fund Budget Actuals thru 12/2017 Actuals thru 12/2017 F:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Dec FY 18 Monthly Report 2/22/2018 ATTACHMENT D-1 December YTD Financial Status % Budget Completion through December --- 50% % Actuals YE % Variance to Budget to Budget REVENUES: CONTRACTED OPERATING REVENUES Golf Revenues 461,396 1,038,825 44.4% 1,228,435 18.3% Member Dues (Golf) 393,609 959,009 41.0% 827,234 -13.7% Tennis Revenues 186,190 345,900 53.8% 350,890 1.4% Food & Beverage 355,206 793,887 44.7% 811,091 2.2% Merchandise & Other 110,041 244,730 45.0%234,653 -4.1% 1,506,442 3,382,351 44.5% 3,452,303 2.1% TOWN OPERATING REVENUES Daily Drop-Ins 13,741 23,000 59.7% 27,794 20.8% Member Dues 357,164 614,000 58.2% 708,466 15.4% Recreation Programs 39,765 134,000 29.7% 134,000 0.0% Swim Team/Swim Lessons 10,103 1,500 673.5% 10,103 573.5% Facility Rental Income 17,011 4,580 371.4% 18,420 302.2% Concession Sales 129 500 25.8%500 0.0% 437,912 777,580 56.3% 899,283 15.7% OTHER REVENUES Local Sales Tax 1,061,203 2,308,112 46.0% 2,308,112 0.0% Real Property Rental Income 19,502 27,861 70.0%19,502 -30.0% 1,080,706 2,335,973 46.3% 2,327,614 -0.4% TOTAL REVENUES 3,025,060 6,495,904 46.6% 6,679,200 2.8% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CONTRACTED OPERATING EXPENDITURES Personnel 1,021,281 2,121,525 48.1% 2,108,532 -0.6% Operations & Maintenance 1,556,946 2,712,454 57.4% 2,837,316 4.6% Equipment Leases 186,000 371,313 50.1%365,521 -1.6% 2,764,227 5,205,292 53.1% 5,311,369 2.0% TOWN OPERATING EXPENDITURES Personnel 381,260 745,858 51.1% 781,683 4.8% Operations & Maintenance 134,057 284,548 47.1%284,548 0.0% 515,317 1,030,406 50.0% 1,066,231 3.5% CAPITAL OUTLAY 29,464 94,250 31.3% 94,250 0.0% TRANSFERS OUT - 165,956 0.0% 165,956 0.0% TOTAL EXPENDITURES 3,309,007 6,495,904 50.9% 6,637,806 2.2% SURPLUS / (DEFICIT) (283,948) - 41,395 BEGINNING FUND BALANCE (97,157) Plus: Surplus / (Deficit)41,395 ENDING FUND BALANCE **(55,762) * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2017/2018 Actuals thru 12/2017 Budget Year End Estimate * Community Center Fund Actuals thru 12/2017 Budget Year End Estimate * F:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Dec FY 18 Monthly Report 2/22/2018 ATTACHMENT D-2TROONEl Conquistador Cash Flow StatementActualActualActualActualActualActualActual Original Budget ForecastJul-17Aug-17 Sep-17 Oct-17 Nov-17 Dec-17TotalTOTALTOTALRevenues:Golf Fees, net of discounts20,933 29,780 50,962 67,564 80,238 57,727 307,204 780,706 941,751 Trail Fees & Member Cart Fees19,317 17,660 17,589 18,586 19,200 18,597 110,949 205,664 215,671 Golf - Group Services- 126 840 64 - - 1,030 1,760 2,090 Range, Rentals, Other Golf related2,794 2,897 8,412 6,485 7,273 6,429 34,290 40,930 55,920 Golf Lessons 405 285 590 790 585 1,103 3,758 5,205 6,228 Income - Golf Schools 2,400 - - 955 540 270 4,165 4,560 6,775 Total Member Dues 58,678 60,153 59,790 71,812 73,398 69,778 393,609 959,009 827,234 Other Member Income 312 177 (247) 684 (202) (57) 667 - 667 Swim/Tennis Revenues 25,228 14,808 35,800 51,936 27,259 31,159 186,190 345,900 350,890 Income - Other (non - golf) 11 75 - 77 44 2,005 2,212 - 2,424 Merchandise, net of discounts 10,460 14,083 12,881 11,512 28,049 30,177 107,162 244,730 231,562 Food and Beverage, net of discounts 47,336 49,103 64,613 65,869 64,944 63,341 355,206 793,887 811,091 Total Revenues 187,874 189,147 251,230 296,334 301,328 280,529 1,506,442 3,382,351 3,452,303 Cost of Sales:COS - Group Services Golf17 125 823 64 - - 1,029 1,760 2,089 COS - Golf Lessons 324 333 475 616 468 985 3,201 3,644 4,931 COS - Golf Schools 1,666 - - 669 378 - 2,713 3,648 4,801 COS - Service Commissions 15,523 12,325 17,775 19,043 20,326 19,594 104,586 176,330 194,676 COS - Merchandise, net of discounts 7,715 5,567 6,438 8,362 17,475 22,113 67,670 158,234 148,320 COS - Other (non - golf) (1,572) - - - - - (1,572) - (1,572) COS - Food & Beverage 17,099 19,701 25,927 26,631 22,402 23,759 135,519 282,045 295,612 Total Cost of Sales 40,772 38,051 51,438 55,385 61,049 66,451 313,146 625,660 648,857 Gross Profit 147,102 151,096 199,792 240,949 240,279 214,078 1,193,296 2,756,691 2,803,446 Operating Expenses:Payroll 130,038 137,301 138,716 139,445 140,414 131,203 817,117 1,684,714 1,680,143 Employee Benefits 30,933 31,745 32,122 30,539 31,567 31,663 188,569 409,777 400,766 Employee Related 3,367 2,502 2,281 2,323 2,461 2,661 15,595 27,034 27,623 Advertising & Marketing 5,429 5,790 4,366 22,212 14,534 11,801 64,132 69,983 99,310 Repair & Maintenance 30,650 29,992 80,297 71,059 16,233 23,352 251,583 423,482 386,297 Operating Expenses 17,312 17,012 19,341 20,508 23,507 19,984 117,664 258,196 255,653 Total Operating Expenses 217,729 224,342 277,123 286,086 228,716 220,664 1,454,660 2,873,186 2,849,792 Operating Profit (70,627) (73,246) (77,331) (45,137) 11,563 (6,586) (261,364) (116,495) (46,346) Leases - Carts 9,282 9,282 9,282 9,282 9,282 9,282 55,689 119,745 113,953 Leases - Equipment23,029 23,780 20,580 22,670 19,277 20,974 130,311 251,568 251,568 Utilities 127,430 120,728 147,704 181,357 88,249 65,763 731,231 1,190,026 1,295,444 Fixed Operating Expenses 159,741 153,790 177,566 213,309 116,807 96,018 917,231 1,561,339 1,660,965 Gross Operating Profit (230,368) (227,036) (254,897) (258,446) (105,244) (102,604) (1,178,595) (1,677,834) (1,707,311) Insurance 97 97 97 97 97 97 582 1,107 1,146 Fees, Permits & Licenses 335 (5) 160 - 150 640 640 Base Management Fees 12,000 12,000 12,000 12,000 12,000 12,000 72,000 144,000 144,000 Bad Debt337 5,048 250 (313) 646 5,968 5,968 Total Other Expenses 12,097 12,769 17,140 12,507 11,784 12,893 79,190 145,107 151,754 Net Operating Income (Loss) (242,465) (239,805) (272,037) (270,953) (117,028) (115,497) (1,257,785) (1,822,941) (1,859,065) 2/22/2018 ATTACHMENT D-3 ACTUAL BUDGET ACTUAL BUDGET MONTH MONTH Y-T-D Y-T-D FOOD & BEVERAGE REVENUE 63,341 85,253 355,207 338,003 TOTAL REVENUES 63,341 85,253 355,207 338,003 COST OF SALES 23,759 30,433 135,519 121,952 PAYROLL & BENEFITS 38,621 44,970 232,827 243,996 OPERATING EXPENSES 8,563 8,300 52,643 38,750 NET INCOME (LOSS) (7,602) 1,550 (65,782) (66,695) EL CONQUISTADOR INCOME STATEMENT CONSOLIDATED - RESTAURANT/GRILLE - DECEMBER 2017 2/22/2018 ATTACHMENT E December YTD Financial Status FY 2017/2018 Water Utility Fund % Budget Completion through December --- 50% % Actuals YE % Variance to Budget to Budget REVENUES: CHARGES FOR SERVICES 1,827,694 3,225,300 56.7% 3,265,700 1.3% INTEREST INCOME (28,995) 93,164 -31.1% 6,991 -92.5% MISCELLANEOUS 1,814 - 0.0% 2,000 0.0% WATER SALES 7,429,065 12,075,700 61.5%13,258,000 9.8% TOTAL REVENUES 9,229,577 15,394,164 60.0% 16,532,691 7.4% % Actuals YE % Variance to Budget to Budget EXPENSES: ADMINISTRATION 6,055,458 11,352,165 53.3% 11,328,120 -0.2% ENGINEERING & PLANNING 1,333,225 3,687,102 36.2% 3,645,538 -1.1% PRODUCTION 1,144,863 2,826,659 40.5% 2,771,617 -1.9% DISTRIBUTION 604,229 1,087,086 55.6% 1,142,128 5.1% OTHER FINANCING USES 2,847 2,847 100.0%2,847 0.0% TOTAL EXPENSES 9,140,622 18,955,859 48.2% 18,890,250 -0.3% SURPLUS/(DEFICIT) 88,955 (3,561,695) (2,357,559) Excludes non-cash outlays for depreciation & amortization * Year-end estimates are subject to further revision Year End Estimate * Budget Year End Estimate * Actuals thru 12/2017 Actuals thru 12/2017 Budget F:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Dec FY18 Fund Update_Water Utility Fund 2/22/2018 ATTACHMENT F December YTD Financial Status FY 2017/2018 Stormwater Utility Fund % Budget Completion through December--50% Actuals thru 12/2017 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES: CHARGES FOR SERVICES 690,032 1,402,500 49.2% 1,402,500 0.0% INTEREST INCOME 1,699 500 339.7% 3,103 520.5% MISCELLANEOUS 51 - 0.0%51 0.0% TOTAL REVENUES 691,782 1,403,000 49.3% 1,405,654 0.2% Actuals thru 12/2017 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: PERSONNEL 270,742 670,099 40.4% 670,099 0.0% OPERATIONS & MAINTENANCE 113,716 381,976 29.8% 381,976 0.0% CAPITAL 86,425 253,625 34.1%203,625 -19.7% TOTAL EXPENDITURES 470,883 1,305,700 36.1% 1,255,700 -3.8% Does not include non-cash outlays for depreciation SURPLUS / (DEFICIT) 220,899 97,300 149,954 * Year-end estimates are subject to further revision ATTACHMENT GConsolidated Year-to-Date Financial Report through December, 2017 FY 2017/2018FY 17/18 Capital Leases/Left in AccountsBegin Bal. Transfer OutThru Dec 2017General Fund - Unassigned 11,961,352 18,567,625 18,567,625 1,465,815 11,584,256 3,451,053 161,427 16,662,552 13,866,425 General Fund - Assigned 1,441,862 - 1,441,862 Highway Fund - Committed 1,350,903 1,724,904 1,724,904 964,152 436,047 381,849 1,782,048 1,293,759 Seizure & Forfeiture - Justice/State 303,081 161,508 161,508 16,333 75,341 11,960 103,635 360,954 Bed Tax Fund - Committed 462,611 620,243 620,243 225,019 129,254 141,758 96,323 592,354 490,499 Impound Fee Fund 25,318 17,550 17,550 28,532 28,532 14,336 Community Center Fund (97,157) 3,025,060 3,025,060 186,000 381,260 2,712,284 29,464 3,309,007 (381,105) Municipal Debt Service Fund 89,327 88,486 637,827 726,313 6,800 721,732 728,532 87,108 Oracle Road Debt Service Fund 6,737 164,413 164,413 164,851 164,851 6,299 Alternative Water Resources Dev Impact Fee Fund 6,472,074 818,532 818,532 82,311 82,311 7,208,294 Potable Water System Dev Impact Fee Fund 5,558,044 387,356 387,356 2,279 256,646 258,925 5,686,475 Townwide Roadway Development Impact Fee Fund 3,097,156 258,614 258,614 522,968 522,968 2,832,802 Parks & Recreation Impact Fee Fund 514,986 135,238 135,238 539,400 539,400 110,824 Police Impact Fee Fund 505,282 52,248 52,248 - 557,530 General Government Impact Fee Fund 3,524 10 10 - 3,534 General Government CIP Fund 1,716,361 1,445,254 1,445,254 61,283 560 1,487,457 1,549,301 1,612,314 PAG/RTA Fund 884,762 2,556,136 2,556,136 81,425 2,470,706 2,552,131 888,767 Water Utility10,024,473 9,229,577 9,229,577 2,847 1,496,905 3,063,329 1,337,401 3,240,140 9,140,622 10,113,428 Stormwater Utility603,121 691,782 691,782 270,742 113,716 86,425 470,883 824,020 Fleet Fund 952,371 652,969 150,000 802,969 43,012 331,924 439,001 813,938 941,402 Benefit Self Insurance Fund (113,357) 1,790,833 1,790,833 990,910 990,910 686,565 Recreation In-Lieu Fee Fund 15,718 - - 15,718 Energy Efficiency Project Fund 568,337 - 525,797 525,797 42,540 Total 46,346,886 40,943,083 2,233,081 43,176,164 2,419,081 15,057,155 11,408,315 7,550,778 - 4,383,369 40,818,698 48,704,351 Fund RevenueOther Fin Sources/TfrsTotal InDebt Service Total OutPersonnel O&M Capital ContingencyF:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Attachment G - Summary All Funds2/22/2018 ATTACHMENT HGeneral Fund Local Sales Tax CollectionsFY 2017/18CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 547,514 469,050 456,125 443,115 664,593 459,268 3,039,665 Utility Sales Tax 202,208 429,402 290,283 310,764 256,734 231,300 1,720,691 Retail Sales Tax 541,876 478,942 481,677 505,094 502,326 629,823 3,139,738 All Other Local Sales Tax *202,678 219,584 186,445 184,144 200,359 198,807 1,192,017 TOTAL 1,494,276$ 1,596,978$ 1,414,530$ 1,443,117$ 1,624,012$ 1,519,198$ 9,092,111$ FY 2016/17CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 211,862 188,622 464,738 331,337 302,776 310,738 553,592 307,122 457,822 400,603 660,930 602,001 4,792,143 Utility Sales Tax 256,758 319,698 294,983 273,535 216,045 210,750 210,159 235,740 210,303 197,163 205,177 221,911 2,852,222 Retail Sales Tax 498,390 460,006 467,191 491,196 495,453 598,150 774,898 489,541 512,147 544,825 565,002 542,081 6,438,880 All Other Local Sales Tax *171,723 170,598 181,484 157,224 196,370 185,762 203,062 196,780 236,388 188,520 220,840 195,229 2,303,981 TOTAL 1,138,733$ 1,138,924$ 1,408,396$ 1,253,292$ 1,210,644$ 1,305,400$ 1,741,712$ 1,229,183$ 1,416,660$ 1,331,110$ 1,651,949$ 1,561,222$ 16,387,225$ * Note: Does not include cable franchise fees or sales tax audit revenuesF:\BUDGET ANALYST\Financial Reports 2017-2018\2Q\Dec\Attachment H - Gen Fund Local Sales Tax2/22/2018    Town Council Regular Session Item # 2. Meeting Date:03/07/2018   Requested by: Town Council Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: POSSIBLE ACTION TO APPROVE THE SETTLEMENT AGREEMENT REGARDING PROPERTY TO BE OBTAINED AS PART OF THE TANGERINE ROAD CORRIDOR IMPROVEMENT PROJECT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve/deny) the settlement agreement as discussed in executive session. Attachments No file(s) attached.