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HomeMy WebLinkAboutPackets - Council Packets (1029)         AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION AND STUDY SESSION MARCH 20, 2019 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statues §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS   TOWN MANAGER'S REPORT   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   2.Presentation and possible discussion of the Town's Fiscal Year 2018/19 Financial Update through January 2019   CONSENT AGENDA  (Consideration and/or possible action)   A.Minutes - February 27 and March 6, 2019   B.Request for approval of a Final Plat for the Saguaro Viejos West residential subdivision, located near the northwest corner of La Cholla Boulevard and Naranja Drive   C.Resolution No. (R)19-11, approving the dedication of public easements for Trail No. 331, Trail No. 33 and C.Resolution No. (R)19-11, approving the dedication of public easements for Trail No. 331, Trail No. 33 and drainage maintenance and access associated with the Valley Vista subdivision located north of Tangerine Road and east of Rancho Vistoso Boulevard along the future Moore Road Loop extension   D.Resolution No. (R)19-12, authorizing and approving an Employment Agreement for the Town Magistrate, George Dunscomb   E.Resolution No. (R)19-13, 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   F.Resolution No. (R)19-14, authorizing and approving a subgrantee agreement between the Town of Oro Valley and the Arizona Department of Homeland Security to fund the purchase of three(3)License Plate Readers under the Operation Stonegarden program   REGULAR AGENDA   1.RESOLUTION NO. (R)19-15, DISCUSSION AND POSSIBLE ACTION REGARDING THE FY 2019/20 - FY 2020/21 TOWN COUNCIL STRATEGIC LEADERSHIP PLAN   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 OF THE REGULAR SESSION   STUDY SESSION   CALL TO ORDER   STUDY SESSION AGENDA   1.PRESENTATION AND DISCUSSION REGARDING THE PROPOSED COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS)   ADJOURNMENT *Public comments will be accepted during this study session The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.     POSTED: 3/13/19 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 and Study Session 1. Meeting Date:03/20/2019   Proclamation - World Down Syndrome Day Information Subject Proclamation - World Down Syndrome Day Summary Attachments Proclamation     Town Council Regular and Study Session 2. Meeting Date:03/20/2019   Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: Presentation and possible discussion of the Town's Fiscal Year 2018/19 Financial Update through January 2019 RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Council Communication - January 2019 Financial Update  Attachment A - General Fund  Attachment B - Highway Fund  Attachment C-1 Community Center Fund  Attachment C-2 Troon Cash Flow  Attachment C-3 Troon F&B  Attachment D - Summary All Funds  Attachment E - Gen Fund Local Sales Tax  Town Council Regular Session Meeting Date: 03/20/2019 Requested by: Stacey Lemos Submitted By: Wendy Gomez, Finance Department: Finance Information SUBJECT: Fiscal Year 2018/19 Financial Update through January 2019 RECOMMENDATION: This item is for information only. EXECUTIVE SUMMARY: In the General Fund (see Attachment A), revenues collected through January totaled $22.0 million or 56.5% of the budget amount of $38.9 million. Year-to-date expenditures through January totaled $21.6 million or 51.5% of the budget amount of $42.0 million. In the Highway Fund (see Attachment B), revenues collected through January totaled $2.1 million or 51.6% of the budget amount of $4.1 million. Year-to-date expenditures through January totaled $1.6 million or 34.6% of the budget amount of $4.6 million. In the Community Center Fund (see Attachments C-1, C-2 and C-3), revenues collected through January totaled $3.6 million or 53.9% of the budget amount of $6.7 million. Year- to-date expenditures through January totaled $3.5 million or 53.1% of the budget amount of $6.6 million. BACKGROUND OR DETAILED INFORMATION: Attachment A shows General Fund revenues and expenditures through January, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows: Revenues $38,452,260 Less: Expenditures ($40,506,227) Estimated Decrease in Fund Balance ($2,053,967)* *The estimated decrease in fund balance is due to the planned, budgeted transfer of General Fund one-time surplus funds earned in FY 2017/18 to the Capital Fund for future capital projects per the Town's adopted financial policies. General Fund Revenues  Local sales tax collections in the General Fund total $11.1 million or 57.0% of the budget amount of $19.4 million, and are projected to come in on budget at this time. Please see Attachment E for a monthly tracking of General Fund local sales tax collections, including construction, utility and bed tax collections.  License and permit revenues total $1.3 million or 59.3% of the budget amount of $2.1 million, and are projected to come in on budget at this time.  State shared revenues total $6.7 million or 57.1% of the budget amount of $11.7 million, and are projected to come in on budget at this time.  Charges for services revenues total $1.5 million or 60.4% of the budget amount of $2.4 million. These revenues are estimated to come in over budget by about $89,000 or 3.7%. This anticipated overage is due in part to previously collected Court security fees, which are being utilized to complete the security-related components of the Courthouse remodel CIP project. The corresponding expenditure for these components is included in the year-end estimate for General Administration. The overage is also attributable to farebox revenues and zoning & subdivision fees.  Federal grant revenues total $221,969 or 37.2% of the budget amount of $596,162. These revenues are estimated to come in under budget by about $187,000 or 31.3%. This is due to previous Counter Narcotics Alliance task force officers returning to the Town's Police Department operations, as well as capacity included for grant-funded vehicles, which is likely to roll over into next fiscal year. Corresponding capital savings for the vehicles are factored into the year- expenditure estimates for the Police Department.  State grant revenues total $45,440 or 38.2% of the budget amount of $118,800. These revenues are estimated to come in under budget by about $44,000 or 36.9%, due mainly to budgeted funding for transit van cameras, of which the Town ended up receiving last fiscal year. The corresponding budgeted expenditure for the cameras has been removed from the year-end estimates for the Transit Division in the Public Works Department.  Other intergovernmental revenues total $749,926 or 41.5% of the budget amount of $1.8 million. These revenues are estimated to come in under budget by about $404,000 or 22.4%. Of this amount, $228,000 is attributable to the discontinued school resource officer contract with Pusch Ridge Christian Academy, as well as capacity that was included for a potential school resource officer at Leman Academy. This variance is offset by a corresponding reduction in estimated personnel expenditures for the Police Department. The remaining amount is attributable to Transit reimbursements from the IGA with the Regional Transportation Authority.  Interest income revenues total $252,079 or 168.1% of the budget amount of $150,000. Potential fluctuation in these revenues should be expected; therefore, the year-end estimate remains on budget at this time.  Miscellaneous revenues total $161,107 or 52.5% of the budget amount of $306,750. These revenues are expected to come in over budget by about $89,000 or 29.1%, due to insurance recoveries and sale of assets.  Please note that the remaining fund balance from the Bed Tax Fund of $617,856 is now reflected in the beginning fund balance for the General Fund, as opposed to a transfer into the fund. General Fund Expenditures  General Fund expenditures are estimated to come in under budget by about $1.5 million or 3.5%. Of this amount, about $592,000 is due to estimated personnel savings and about $536,000 is attributable to estimated operations & maintenance (O&M) savings. Capital outlay is expected to come in under budget by about $22,000. The remainder of expenditure savings is due to an estimated reduction in the transfer out to the Highway Fund, which is the result of an increase in expected highway user (HURF) revenues. Please refer to the Highway Fund discussion below. The General Fund is expected to end the fiscal year with a total fund balance of about $14.5 million, or 34.6% of budgeted expenditures. HIGHWAY FUND Highway Fund Revenues  State shared highway user funds total $2.0 million or 61.6% of the budget amount of $3.3 million. These revenues are estimated to come in over budget by about $328,000 or 10.0%, per the League of Arizona Cities and Towns. This is due to a one-time allocation called for in state statute, as well as partial elimination of the annual HURF sweep to fund Department of Public Safety operations.  As a result of the additional HURF funding, the subsidy transfer from the General Fund has been reduced by approximately $328,000.  State grant revenues are estimated to come in under budget by about $38,000 or 23.2%. This is due to vacant roadway construction positions that, when filled, would have been billed to PAG and the RTA for reimbursement. This variance is offset by a corresponding reduction in personnel expenditures.  License and permit revenues are estimated to come in under budget by $16,000 or 33.3%, based on year to date collections. Highway Fund Expenditures  Highway Fund expenditures are estimated to come in under budget by about $329,000 or 7.1%. Of this amount, $250,000 is attributable to the Tangerine/1st Avenue Safety CIP project, which is expected to roll over into next fiscal year. Approximately $65,000 is attributable to projected personnel savings, while the remaining amount of about $14,000 is due to anticipated O&M savings. The Highway Fund is expected to end the fiscal year with a fund balance of about $717,000. COMMUNITY CENTER FUND Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from Troon and Town-managed operations. Attachment C-2 shows the monthly line item detail for the Troon-managed operations, specifically revenues and expenditures associated with the golf, food and beverage operations. The totals in the revenue and expenditure categories in Attachment C-2 tie to the Contracted Operating Revenues and Expenditures in Attachment C-1. Attachment C-3 shows the revenues and expenditures for the Troon-managed food and beverage operations only. Community Center Fund Revenues  Revenues in the Community Center Fund total $3.6 million or 53.9% of the budget amount of $6.7 million. Contracted operating revenues from Troon total $1.7 million and Town operating revenues total $511,800. Local sales tax revenues from the dedicated half-cent sales tax total $1.4 million or 58.1% of the budget amount of $2.4 million.  Local sales tax revenues are estimated to come in over budget by about $35,000 or 1.5%, due mainly to restaurant/bar collections.  Town operating revenues are estimated to come in under budget by about $135,000 or 11.9%. This is due to tennis revenues, which were budgeted as recreation program revenues pending final contract outcome. These revenues will instead post as monthly rental payments to the Town. Please reference the offsetting savings in the expenditure discussion below.  Contracted operating revenues from Troon are estimated to come in under budget by about $41,000 or 1.3%, due to member dues and food and beverage revenue. Community Center Fund Expenditures  Expenditures in the Community Center Fund total $3.5 million or 53.1% of the budget amount of $6.6 million, and are estimated to come in under budget by roughly $277,000. This variance is primarily due to contract payments that were budgeted for tennis operations. As mentioned in the revenue discussion above, tennis operations will instead be accounted for as monthly rental payments to the Town. The remaining expenditure variance is due to estimated savings in contracted operating expenditures. The Community Center Fund is projected to end the fiscal year with a surplus of about $225,000 and a positive fund balance of approximately $153,000. All revenue and expenditure estimates are subject to change. Please see Attachments A and B for additional details on the General Fund and Highway Fund. See Attachments C-1, C-2 and C-3 for additional details on the Community Center Fund. See Attachment D for a fiscal year-to-date consolidated summary of all Town Funds. See Attachment E for a breakdown of monthly local sales tax collections for the General Fund. FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for information only.   ATTACHMENT A January YTD Financial Status General Fund % Budget Completion through January --- 58.3% % Actuals YE % Variance to Budget to Budget REVENUES: LOCAL SALES TAX 11,087,340 19,437,418 57.0% 19,437,418 0.0% LICENSES & PERMITS 1,267,150 2,136,096 59.3% 2,136,096 0.0% FEDERAL GRANTS 221,969 596,162 37.2% 409,607 -31.3% STATE GRANTS 45,440 118,800 38.2% 75,000 -36.9% STATE/COUNTY SHARED 6,690,709 11,708,575 57.1% 11,708,575 0.0% OTHER INTERGOVERNMENTAL 749,926 1,805,900 41.5% 1,401,639 -22.4% CHARGES FOR SERVICES 1,454,238 2,408,862 60.4% 2,497,925 3.7% FINES 71,699 120,000 59.7% 120,000 0.0% INTEREST INCOME 252,079 150,000 168.1% 150,000 0.0% MISCELLANEOUS 161,107 306,750 52.5% 396,000 29.1% TRANSFERS IN - 120,000 0.0%120,000 0.0% TOTAL REVENUES 22,001,656 38,908,563 56.5% 38,452,260 -1.2% % Actuals YE % Variance to Budget to Budget EXPENDITURES: ADMINISTRATIVE SERVICES 2,342,760 4,450,555 52.6% 4,333,676 -2.6% CLERK 228,108 444,559 51.3% 414,826 -6.7% COMMUNITY & ECON. DEV. 1,451,330 2,869,324 50.6% 2,743,269 -4.4% COUNCIL 127,900 210,494 60.8% 203,910 -3.1% GENERAL ADMINISTRATION 1,528,147 2,696,700 56.7% 2,596,400 -3.7% LEGAL 418,065 793,567 52.7% 773,423 -2.5% MAGISTRATE COURT 463,120 884,385 52.4% 873,266 -1.3% MANAGER 642,852 1,251,370 51.4% 1,247,578 -0.3% PARKS & RECREATION 1,793,085 3,606,586 49.7% 3,519,644 -2.4% POLICE 8,984,765 16,557,555 54.3% 16,064,373 -3.0% PUBLIC WORKS 1,754,392 3,518,946 49.9% 3,363,846 -4.4% TRANSFERS OUT 1,877,713 4,700,514 39.9%4,372,017 -7.0% TOTAL EXPENDITURES 21,612,237 41,984,555 51.5% 40,506,227 -3.5% SURPLUS / (DEFICIT) 389,420 (3,075,992) (2,053,967) BEGINNING FUND BALANCE (A)16,589,312 Plus: Surplus / (Deficit)(2,053,967) ENDING FUND BALANCE **14,535,345 (A) Includes remaining fund balance from the Bed Tax Fund in the amount of $617,856 and remaining fund balance from the Impound Fee Fund of $3,814 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2018/2019 Year End Estimate * Budget Year End Estimate * Actuals thru 1/2019 Actuals thru 1/2019 Budget F:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Jan\Jan FY 19 Monthly Report 3/11/2019 ATTACHMENT B January YTD Financial Status FY 2018/2019 % Budget Completion through January --- 58.3% Actuals thru 1/2019 Budget % Actuals to Budget Year End Estimate * YE % Variance to BudgetREVENUES: LICENSES & PERMITS 19,026 48,700 39.1% 32,500 -33.3% STATE GRANTS 29,254 165,000 17.7% 126,767 -23.2% STATE/COUNTY SHARED 2,026,881 3,291,659 61.6% 3,620,156 10.0% INTEREST INCOME 43,295 50,000 86.6% 50,000 0.0% MISCELLANEOUS 1,559 3,000 52.0% 2,394 -20.2% TRANSFERS IN - 550,000 0.0%221,503 -59.7% TOTAL REVENUES 2,120,014 4,108,359 51.6% 4,053,320 -1.3% Actuals thru 1/2019 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: ADMINISTRATION 232,402 478,693 48.5% 464,828 -2.9% TRANSPORTATION ENGINEERING 789,276 3,134,882 25.2% 2,819,915 -10.0% STREET MAINTENANCE 581,046 1,012,461 57.4%1,012,461 0.0% TOTAL EXPENDITURES 1,602,724 4,626,036 34.6% 4,297,204 -7.1% SURPLUS / (DEFICIT) 517,289 (517,677) (243,884) BEGINNING FUND BALANCE 960,719 Plus: Surplus / (Deficit)(243,884) ENDING FUND BALANCE **716,835 * 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 2018-2019\3Q\Jan\Jan FY 19 Monthly Report 3/11/2019 ATTACHMENT C-1 January YTD Financial Status % Budget Completion through January --- 58.3% % Actuals YE % Variance to Budget to Budget REVENUES: CONTRACTED OPERATING REVENUES Golf Revenues 718,791 1,272,523 56.5% 1,328,977 4.4% Member Dues (Golf) 416,462 868,848 47.9% 781,224 -10.1% Tennis Revenues 77,964 - 0.0% 77,964 0.0% Food & Beverage 347,689 755,148 46.0% 673,250 -10.8% Merchandise & Other 113,032 217,168 52.0%211,607 -2.6% 1,673,938 3,113,687 53.8% 3,073,022 -1.3% TOWN OPERATING REVENUES Daily Drop-Ins 16,368 25,000 65.5% 34,000 36.0% Member Dues 416,285 695,000 59.9% 727,500 4.7% Recreation Programs 42,592 360,750 11.8% 165,000 -54.3% Swim Team/Swim Lessons 3,709 21,000 17.7% 16,209 -22.8% Facility Rental Income 32,733 37,400 87.5% 61,380 64.1% Concession Sales 114 250 45.6%250 0.0% 511,800 1,139,400 44.9% 1,004,339 -11.9% OTHER REVENUES Local Sales Tax 1,385,402 2,384,558 58.1% 2,419,149 1.5% Real Property Rental Income 19,502 19,502 100.0%19,502 0.0% 1,404,904 2,404,060 58.4% 2,438,651 1.4% TOTAL REVENUES 3,590,642 6,657,147 53.9% 6,516,012 -2.1% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CONTRACTED OPERATING EXPENDITURES Personnel 1,222,188 2,020,319 60.5% 2,079,004 2.9% Operations & Maintenance 1,432,118 2,579,027 55.5% 2,455,614 -4.8% Equipment Leases 220,036 407,936 53.9%410,268 0.6% 2,874,342 5,007,282 57.4% 4,944,886 -1.2% TOWN OPERATING EXPENDITURES Personnel 358,454 769,329 46.6% 769,329 0.0% Operations & Maintenance 116,969 486,590 24.0%271,800 -44.1% 475,423 1,255,919 37.9% 1,041,129 -17.1% CAPITAL OUTLAY 2,633 50,950 5.2% 50,950 0.0% TRANSFERS OUT 133,999 253,999 52.8% 253,999 0.0% TOTAL EXPENDITURES 3,486,397 6,568,150 53.1% 6,290,964 -4.2% SURPLUS / (DEFICIT) 104,245 88,997 225,048 BEGINNING FUND BALANCE (71,563) Plus: Surplus / (Deficit)225,048 ENDING FUND BALANCE **153,485 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2018/2019 Actuals thru 1/2019 Budget Year End Estimate * Community Center Fund Actuals thru 1/2019 Budget Year End Estimate * F:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Jan\Jan FY 19 Monthly Report 3/11/2019 ATTACHMENT C-2TROONEl Conquistador Cash Flow StatementActualActualActualActualActualActualActualActual Original Budget ForecastJul-18Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19TOTALTOTALTOTALRevenues:Golf Fees, net of discounts37,622 40,532 77,218 58,993 102,521 97,280 150,439 564,605 969,832 1,054,265 Trail Fees & Member Cart Fees15,036 15,102 15,183 14,556 18,163 16,304 16,619 110,963 225,160 204,620 Golf - Group Services- 136 783 - 440 - 33 1,392 1,733 2,010 Range, Rentals, Other Golf related5,052 5,162 4,466 4,730 4,773 4,402 6,114 34,699 61,650 57,090 Golf Lessons 330 780 300 110 70 632 640 2,862 6,748 4,987 Income - Golf Schools 1,210 - 900 485 325 450 900 4,270 7,400 6,005 Total Member Dues 55,466 52,613 53,302 62,707 60,880 67,454 64,040 416,462 868,848 781,224 Other Member Income 7 44 87 181 185 10 82 596 - 596 Swim/Tennis Revenues 26,291 21,188 30,485 - - - - 77,964 - 77,964 Income - Other (non - golf) 159 97 14,636 132 241 - 1,454 16,719 2,000 16,719 Merchandise, net of discounts 8,895 8,175 11,631 11,204 16,003 27,828 11,981 95,717 215,168 194,292 Food and Beverage, net of discounts 39,360 30,419 55,075 51,114 51,993 65,094 54,634 347,689 755,148 673,250 Total Revenues 189,428 174,248 264,066 204,212 255,594 279,454 306,936 1,673,938 3,113,687 3,073,022 Cost of Sales:COS - Group Services Golf - 135 701 - 440 - - 1,276 1,733 1,894 COS - Golf Lessons 264 221 240 112 (32) 507 521 1,833 5,398 3,533 COS - Golf Schools 1,465 (1) - 340 260 - - 2,064 5,250 3,279 COS - Service Commissions 17,056 16,375 18,503 88 - - - 52,022 - 52,022 COS - Merchandise, net of discounts 6,521 6,405 8,586 20,858 10,601 19,143 6,819 78,933 130,874 139,378 COS - Food & Beverage 14,025 15,500 19,287 18,773 20,067 22,651 19,919 130,222 275,730 244,537 Total Cost of Sales 39,331 38,635 47,317 40,171 31,336 42,301 27,259 266,350 418,985 444,643 Gross Profit 150,097 135,613 216,749 164,041 224,258 237,153 279,677 1,407,588 2,694,702 2,628,379 Operating Expenses:Payroll 138,348 139,002 140,513 142,037 140,745 128,560 143,539 972,744 1,620,967 1,658,724 Employee Benefits 33,784 31,309 32,117 34,437 30,015 31,578 34,484 227,724 374,952 387,232 Employee Related 2,902 3,234 4,674 2,481 3,792 2,344 2,293 21,720 24,400 33,048 Advertising & Marketing 9,562 10,833 10,540 7,602 10,286 14,943 13,589 77,355 119,052 122,068 Repair & Maintenance 25,989 28,983 78,387 68,726 14,503 24,509 16,796 257,893 402,854 389,662 Operating Expenses 16,637 15,193 22,511 22,666 20,514 19,358 17,878 134,757 235,082 234,512 Total Operating Expenses 227,222 228,554 288,742 277,949 219,855 221,292 228,579 1,692,193 2,777,307 2,825,246 Operating Profit (77,125) (92,941) (71,993) (113,908) 4,403 15,861 51,098 (284,605) (82,605) (196,867) Leases - Carts 9,282 9,282 9,282 13,041 13,041 13,041 13,041 80,007 156,368 158,700 Leases - Equipment 22,670 20,975 19,277 19,277 19,277 19,277 19,277 140,028 251,568 251,568 Utilities 109,701 102,537 124,226 120,681 79,563 46,787 33,247 616,742 1,257,525 1,135,203 Fixed Operating Expenses 141,653 132,793 152,784 152,998 111,880 79,104 65,564 836,778 1,665,461 1,545,471 Gross Operating Profit (218,778) (225,734) (224,777) (266,906) (107,477) (63,243) (14,466) (1,121,383) (1,748,066) (1,742,338) Insurance 98 98 98 98 98 98 101 689 1,194 1,194 Fees, Permits & Licenses 100 510 54 17 11 76 (35) 733 335 733 Base Management Fees 12,000 12,000 12,000 10,000 10,000 10,000 10,000 76,000 144,000 126,000 Bad Debt 375 - - - 1,013 (220) 431 1,599 - 1,599 Total Other Expenses 12,573 12,608 12,152 10,115 11,122 9,954 10,497 79,021 145,529 129,526 Net Operating Income (Loss) (231,351) (238,342) (236,929) (277,021) (118,599) (73,197) (24,963) (1,200,404) (1,893,595) (1,871,864) 3/11/2019 ATTACHMENT C-3 ACTUAL BUDGET ACTUAL BUDGET MONTH MONTH Y-T-D Y-T-D FOOD & BEVERAGE REVENUE 54,634 72,520 347,398 429,587 TOTAL REVENUES 54,634 72,520 347,398 429,587 COST OF SALES 19,919 29,131 130,223 161,415 PAYROLL & BENEFITS 39,435 42,350 251,347 276,636 OPERATING EXPENSES 6,504 3,460 43,176 50,330 NET INCOME (LOSS) (11,224) (2,421) (77,348) (58,794) EL CONQUISTADOR INCOME STATEMENT CONSOLIDATED - RESTAURANT/GRILLE - JAN 2019 3/11/2019 ATTACHMENT DConsolidated Year-to-Date Financial Report through January, 2019 FY 2018/2019FY 18/19 Capital Leases/Left in AccountsBegin Bal. Transfer OutThru Jan 2019General Fund - Unassigned 15,147,450 22,001,656 22,001,656 1,877,713 14,702,209 4,856,661 175,653 21,612,237 15,536,869 General Fund - Assigned 1,441,862 - 1,441,862 Highway Fund - Committed 960,719 2,120,014 2,120,014 1,239,940 362,784 1,602,724 1,478,008 Seizure & Forfeiture - Justice/State 402,290 43,110 43,110 29,216 87,249 13,989 130,453 314,947 Community Center Fund (71,563) 3,590,642 3,590,642 354,035 358,454 2,771,275 2,633 3,486,397 32,682 Municipal Debt Service Fund 88,735 138,009 881,094 1,019,103 7,610 1,028,672 1,036,282 71,556 Oracle Road Debt Service Fund 7,477 169,309 169,309 166,439 166,439 10,347 Alternative Water Resources Dev Impact Fee Fund 7,878,052 846,615 846,615 75,575 34,021 109,596 8,615,071 Potable Water System Dev Impact Fee Fund 6,013,007 454,077 454,077 1,191 654,858 298,970 955,019 5,512,065 Townwide Roadway Development Impact Fee Fund 2,296,534 522,915 522,915 4,235 4,235 2,815,214 Parks & Recreation Impact Fee Fund 272,087 164,637 164,637 - 436,724 Police Impact Fee Fund 653,982 61,398 61,398 - 715,380 General Government Impact Fee Fund 3,555 25 25 - 3,580 Capital Fund 3,323,727 419,535 3,168,199 3,587,734 35,000 2,753,452 2,788,452 4,123,009 PAG/RTA Fund 695,684 285,475 285,475 487,738 487,738 493,421 Water Utility9,680,488 9,543,275 3,200,000 12,743,275 2,581 1,791,277 3,716,651 586,386 4,891,080 10,987,974 11,435,789 Stormwater Utility759,242 854,106 854,106 382,908 177,340 30,157 590,405 1,022,943 Benefit Self Insurance Fund 736,508 2,029,334 2,029,334 2,065,371 2,065,371 700,471 Recreation In-Lieu Fee Fund 15,718 - - 15,718 Energy Efficiency Project Fund 86 - - 86 Total 50,305,639 43,244,133 7,249,293 50,493,426 2,234,329 18,504,004 14,156,707 4,743,123 - 6,385,161 46,023,322 54,775,743 Fund RevenueOther Fin Sources/TfrsTotal InDebt Service Total OutPersonnel O&M Capital ContingencyF:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Jan\Attachment D - Summary All Funds3/11/2019 ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2018/19CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 432,755 355,783 480,092 457,613 380,468 341,104 698,951 3,146,766 Utility Sales Tax 284,416 315,680 310,763 300,228 246,348 206,155 226,228 1,889,818 Retail Sales Tax 521,613 511,157 528,681 526,398 543,458 656,373 786,532 4,074,210 Bed Tax 99,199 97,926 98,236 89,109 124,675 180,525 106,828 796,498 All Other Local Sales Tax *198,583 200,462 187,826 206,134 234,808 245,773 251,206 1,524,794 TOTAL 1,536,566$ 1,481,008$ 1,605,598$ 1,579,482$ 1,529,757$ 1,629,930$ 2,291,008$ 11,653,349$ FY 2017/18CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 547,514 469,050 456,125 443,115 664,593 459,268 439,368 384,045 282,895 451,750 441,960 513,767 5,553,450 Utility Sales Tax 202,208 429,402 290,283 310,764 256,734 231,300 227,032 242,373 218,602 207,317 203,785 230,245 3,050,045 Retail Sales Tax 541,876 478,942 481,677 505,094 502,326 629,823 801,494 557,783 521,796 624,106 551,219 535,133 6,731,269 All Other Local Sales Tax *202,678 219,584 186,445 184,144 200,359 198,807 210,620 267,704 257,943 282,817 242,283 240,054 2,693,437 TOTAL 1,494,276$ 1,596,978$ 1,414,530$ 1,443,117$ 1,624,012$ 1,519,198$ 1,678,514$ 1,451,905$ 1,281,236$ 1,565,990$ 1,439,247$ 1,519,199$ 18,028,201$ * Note: Does not include cable franchise fees or sales tax audit revenuesF:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Jan\Attachment E - Gen Fund Local Sales Tax3/11/2019    Town Council Regular and Study Session A. Meeting Date:03/20/2019   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Minutes - February 27 and March 6, 2019 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 27 and March 6, 2019 minutes.  Attachments 2-27-19 Draft Minutes  3-6-19 Draft Minutes  2/27/19 Minutes, Town Council Study Session 1 MINUTES ORO VALLEY TOWN COUNCIL STUDY SESSION February 27, 2019 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE STUDY SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Winfield called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Joseph C. Winfield, Mayor Melanie Barrett, Vice -Mayor Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Steve Solomon, Councilmember STUDY SESSION AGENDA 1. PRESENTATION AND DISCUSSION REGARDING THE 2019/2021 TOWN COUNCIL STRATEGIC LEADERSHIP PLAN Town Manager Mary Jacobs and Strategic Initiatives Manager Amanda Jacobs presented the 2019/2021 Town Council Strategic Leadership P lan and outlined the following Strategic Focus A reas: - Economic Vitality - Culture and Recreation - Public Safety - Roads, Water and Town Assets - Land Use - Effective and Efficient Government - Town Finances Discussion ensued amongst Council and staff regarding item #1. Staff said the FY 2019/2021 Strategic Leadership Plan would be updated with the 2/27/19 Minutes, Town Council Study Session 2 suggested recommendations from Council, then the plan would be presented to Council at a future meeting. Mayor Winfield recessed the meeting at 8:06 p.m. Mayor Winfield reconvened the meeting at 8:20 p.m. 2. PRESENTATION AND DISCUSSION REGARDING THE PRELIMINARY REVENUES AND BUDGET ASSUMPTIONS FOR FY 2019/20 BUDGET Administrative Servi ces Director/CFO Stacey Lemos presented the Preliminary revenues and budget assumptions for FY 2019/20 budget and included the following: - FY 19/20 Budget Timeline - How do Revenues Look for FY 19/20? - Budget Expenditure Assumptions - Questions? Discussion ensued amongst C ouncil and staff regarding the preliminary revenues and budget assumptions for FY 2019/20 budget. 3. PRESENTATION AND DISCUSSION REGARDING THE PROPOSED COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) Mayor Winfield stated that the presentation and di scussion regarding the proposed Comprehensive Economic Development Strategy would be heard following the Town Council's regularly scheduled meeting on March 20, 2019. ADJOURNMENT Mayor Winfield adjourned the meeting at 8:57 p.m. Prepared by: _________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 27th day of February 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this ____ day of __________________, 2019. 2/27/19 Minutes, Town Council Study Session 3 ______________________ Michael Standish, CMC Town Clerk 3-6-19 Minutes, Town Council Regular Session 1 MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION March 6, 2019 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Winfield called the meeting to order at 6:01 p.m. ROLL CALL PRESENT: Joseph C. Winfield, Mayor Melanie Barrett, Vice Mayor Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Steve Solomon, Councilmember PLEDGE OF ALLEGIANCE Mayor Winfield led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Town Clerk Mike Standish announced the upcoming Town meetings. COUNCIL REPORTS No Council reports were received. TOWN MANAGER’S REPORT Town Manager Mary Jacobs presented the Town Manager's Report and included the following: - Town Manager Mary Jacobs recognized Town staff for their collaborative efforts in isolating and repairing a water main break that occurred on February 27, 2019. - Ms. Jacobs thanked the community for their patience while the front lobby of the 3-6-19 Minutes, Town Council Regular Session 2 Administration Building was remodele d. - Ms. Jacobs provided an overview of the Move Across 2 Ranges event that occurred on March 2, 2019. - Ms. Jacobs asked that residents be mindful of construction crews and students when driving on La Cholla or avoid the area while under construction. Town Clerk Mike Standish announced that new artwork was on display in the Council Chambers by artist Mark Little. ORDER OF BUSINESS Mayor Winfield reviewed the order of business and stated that the order would stand as posted. INFORMATIONAL ITEMS There were no informational items. CALL TO AUDIENCE Oro Valley resident Nancy Ward voiced her concerns regarding Rooney Ranch PAD Area 3. Oro Valley resident Tony Be retta voiced his concerns about the potential building heights proposed in Rooney Ranch Area 3. Oro Valley resident Daniella Beretta voiced her concerns regarding the scenic corridor. PRESENTATIONS 1. Recognition of Outgoing Board and Commission Members Mayor Winfield recognized outgoing Board and Commission Members. 2. Presentation and possible discussion of the Town’s Fiscal Year 2018/2019 Financial Update through December 2018 Administrative Services Director/CFO Stacey Lemos presented the FY 2018/19 Financial Update through December 2018 and included the following; - FY 18/19 Budget by Fund as % of Total Budget - General Fund Revenues - General Fund Expenditures - Highway Fund - Community Center Fund 3-6-19 Minutes, Town Council Regular Session 3 - Water Utility Fund and Stormwater Utility Fund - Questions Discussion ensued amongst Council and staff regarding the Town's Fiscal Year 2018/19 Financial Update through December 2018. CONSENT AGENDA Councilmember Piña requested that item (C) be removed from the Consent Agenda for discussion. A. Minutes - February 20, 2019 B. Resolution No. (R)19-08, authorizing an intergovernmental agreement between the Town of Oro Valley and the Regional Transportation Authority (RTA) of Pima County for the funding of traffic signal equipment under the Regional Traffic Signal Program D. Approval to amend the 2019 Council Liaison assignments by adding a Council Liaison to the Budget and Finance Commission MOTION: A motion was made by Councilmember Rodman and seconded by Councilmember Jones-Ivey to approve Consent Agenda items (A), (B) and (D). MOTION carried, 7-0. C. Resolution No. (R)19-09, authorizing and approving an intergovernmental agreement (IGA) between the City of Phoenix Police Department and the Town of Oro Valley Police Department for the Arizona Internet Crimes Against Children Task Force Councilmember Piña requested additional information regarding internet crimes against children. Lieutenant John Teachout provided further information regarding internet crimes against children. MOTION: A motion was made by Councilmember Piña and seconded by Vice Mayor Barrett to approve Resolution No. (R)19 -09, authorizing and approving an Intergovernmental Agreement (IGA) between the City of Phoenix Police Department and the Town of Oro Valley Police Department for the Arizona Internet Crimes Against Children Task Force. MOTION carried, 7-0. 3-6-19 Minutes, Town Council Regular Session 4 REGULAR AGENDA 1. PUBLIC HEARING: ORDINANCE NO. (O)19 -04, DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED ZONING AMENDMENT TO THE ORO VALLEY TOWN CENTRE PLANNED AREA DEVELOP MENT, LOCATED NEAR THE NORTHEAST CORNER OF ORACLE ROAD AND PUSCH VIEW LANE Planning Manager Bayer Vella started the presentation for item #1 and included the following: - Purpose - Background - Oro Valley Town Centre PAD - Background - Entitlements Area 4 - Applicant's Request - Area 4 - Existing vs. Proposed - Rezoning Request - Review Tools Public Works Director and Town Engineer Paul Keesler presented the following regarding item 1: - Environment: Existing vs. Proposed Grading Area s - Environment: Extent of Grading - Environment: Grading Mitigation Mr. Vella continued the presentation and included the following: - Environment: Open Space and Wildlife Corridors - Views: Oracle Road Scenic Corridor - Views: Proximity of Lots to Oracle Road - Neighborhood Compatibility - Planning and Zoning Commission - Summary and Recommendation Senior Project Manager with WLB Group and representing the applicant, Rob Longaker, provided an overview of the proposed zoning amendment to the Oro Valley Town Center Planned Area Development, located near the northeast corner of Oracle Road and Pusch View Lane and included the following: - Current Site Plan - Open Space and Grading - Transitional Buffering - View Protection and Noise Issues - Recreation Area Concept - Lot Size Comparison Exhibit and Compatibility With Surrounding Development - Wildlife Connectivity - Community Outreach 3-6-19 Minutes, Town Council Regular Session 5 - 87 Lot Site Plan Shown at First Neighborhood Meeting in April 2018 - Site Plan Shown at Second Neighborhood Meeting in No vember 2018 - Current Site Plan - Site Plan Comparison - Existing Site Plan Discussion ensued amongst Council and staff regarding item #1. Mayor Winfield opened the public hearing. The following individuals spoke in opposition to item #1. - Oro Valley resident John Mawhinney - Oro Valley resident Tony Beretta - Oro Valley resident Don English - Oro Valley resident Kurt Weiricy - Oro Valley resident Nancy Ward - Oro Valley resident Dan Adams The following individuals spoke in support of item #1. - Oro Valley resident and CEO of the Greater Oro Valley Chamber of Commerce - Dave Perry - Oro Valley resident Teri Lamour The following individuals spoke on item #1. - Oro Valley resident Court Hall - Oro Valley resident Mike Gessner - Oro Valley resident Bill Gardner - Oro Valley resident Michael Barcky Mayor Winfield closed the public hearing. Director of Land Acquisition and Development for Richmond American Homes , Rick Morris, provided input on item #1. Mayor Winfield recessed the meeting at 8:19 p.m. Mayor Winfield reconvened the meeting at 8:31 p.m. Discussion ensued amongst Council and staff regarding item #1. Fire Marshall for Golder Ranch Fire District, Will Loesche , spoke regarding the recommended ingress and egress of the proposed project. 3-6-19 Minutes, Town Council Regular Session 6 Discussion continued amongst Council, staff, Mr. Longaker and Mr. Morris. MOTION: A motion was made by Mayor Winfield and seconded by Vice Mayor Barrett to continue Ordinance No. (O)19-04, authorizing and approving the proposed amendment to the Oro Valley Town Center, to the April 3, 2019 Town Council meeting. MOTION carried, 4-3 with Councilmember Piña, Councilmember Rodman, and Councilmember Solomon opposed. 2. DISCUSSION AND POSSIBLE ACTION ON A CONCEPTUAL SITE PLAN AND LANDSCAPE PLAN FOR A PROPOSED 21 LOT SINGLE -FAMILY RESIDENTIAL SUBDIVISION, LOCATED ON THE NORTHEAST CORNER OF LAMBERT LANE AND SHORE CLIFF DRIVE Senior Planner Milini Simms presented ite m #2 and included the following: - Purpose - Existing Zoning - Conceptual Site and Landscape Plan - Proposed In-Lieu Fee for Rec Area - Public Participation - Summary and Recommendation Discussion ensued amongst Council and staff regarding item #2. MELCOR USA Assistant Development Manager, Hugo Blanco, addressed Council questions. The following individual spoke in opposition to item #2: Oro Valley resident Bill Babir Discussion continued amongst Council, staff and Mr. Blanco regarding item #2. MOTION: A motion was made by Vice Mayor Barrett and seconded by Councilmember Jones-Ivey to approve the Conceptual Site Plan and landscape Plan for the proposed 21 lot subdivision on Shore Cliff Drive, finding the request is in conformance with the Design Principles and applicable Design Standards. MOTION carried, 7-0. 3. DISCUSSION AND POSSIBLE ACTION ON RESOLUTION NO. (R)19 -10, PROVIDING NOTICE OF INTENT TO INCREASE WATER RATES FOR THE ORO VALLEY WATER UTILITY 3-6-19 Minutes, Town Council Regular Session 7 Water Utility Director Peter Abraham presented item #3 and included the following: - Notice of Intent ot Increase Water Rates - Schedule MOTION: A motion was made by Councilmember Piña and seconded by Councilmember Jones-Ivey to approve Resolution No. (R)19 -10, providing notice of intent to increase water rates for the Oro Valley Water Utility. MOTION carried, 7-0. FUTURE AGENDA ITEMS No future agenda items were requested. CALL TO AUDIENCE No comments were received. ADJOURNMENT MOTION: A motion was made by Vice Mayor Barrett and seconded by Councilmember Piña to adjourn the meeting at 10:56 p.m. MOTION carried, 7-0. __________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular / study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 6th day of March, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2019 . ___________________________ Michael Standish, CMC Town Clerk    Town Council Regular and Study Session B. Meeting Date:03/20/2019   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Milini Simms, Community and Economic Development Case Number: OV1701536 Information SUBJECT: Request for approval of a Final Plat for the Saguaro Viejos West residential subdivision, located near the northwest corner of La Cholla Boulevard and Naranja Drive RECOMMENDATION: Staff recommends approval. Final plat review is primarily an administrative function as the design was previously approved by Town Council. EXECUTIVE SUMMARY: The purpose of this request is to consider a Final Plat for the Saguaro Viejos West residential subdivision, located near the northwest corner of La Cholla Boulevard and Naranja Drive (see image to the right). Final Plats are legal documents used to formally subdivide the property to sell the individual lots. The proposed Final Plat (Attachment 1) consists of 44 detached single-family residential lots on approximately 56 acres. The subdivision design features two gated access points off Naranja Drive and Glover Road. The conservation of large Saguaros and the timing and improvements to Glover Road were major components for design approval. As such, stipulations for both are included as general notes (notes 22, 29-31) on the plat. Lastly, the plat preserves approximately 16 acres of open space (including buffer yards and a recreation area). This open space area also features a portion of a public trail, running north to south between this property and Saguaro Viejos East. The Final Plat for Saguaro Viejos West meets Town requirements and conforms to the approved rezoning and conceptual site plan designs. Therefore, staff recommends approval. BACKGROUND OR DETAILED INFORMATION: The Final Plat requires Town Council approval prior to being recorded with Pima County. Final plat review is primarily an administrative function because the design was previously approved by Town Council. In 2007, the Town Council approved a rezoning and accompanying Tentative Development Plan for the Saguaro Viejos property. Since then, the property was split into two subdivisions (Saguaro Viejos West and Saguaro Viejos East). A Conceptual Site Plan for Saguaro Viejos West was approved by Town Council in 2018.  The conservation of large Saguaros (general note 22) and the timing and improvements to Glover Road were major components for design approval of both subdivisions. Although the rezoning condition defined the improvements for Glover Road (general note 29), the timing and responsibility of them is now divided between two developers. As such, general note 30 on the Final Plat further clarifies these items for Saguaro Viejos West. In summary, the Final Plat conforms to the designs approved during the rezoning and conceptual design review process. Therefore, staff recommends approval.  Proposed Improvements:  Approximately 56 acres subdivided into 44 single-family residential lots Minimum lot size:16,062 s.f. Average lot size: 33,009 s.f. Gated community with two access points off Naranja Drive and Glover Road Maximum building height: 18', 2-story with single-story restrictions on lots 1, 9, and 17 Approximately 16 acres (29%) of preserved open space, including buffer yards and recreation area A portion of a public trail running north to south between this property and Saguaro Viejos East Previous Approvals:  2007: Rezoning approved from R1-144 to R1-20 2014: Conceptual Site Plan approved for both Saguaro Viejos West and Saguaro Viejos East (expired in 2016) 2018: Conceptual Site Plan approved for Saguaro Viejos West 2018: Block Plat approved to divide the property in two (Saguaro Viejos West and Saguaro Viejos East) 2019: Final Site Plan approved FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to APPROVE the Final Plat for the Saguaro Viejos residential subdivision, based on the finding that it meets Town requirements. OR I MOVE to DENY the Final Plat for the Saguaro Viejos residential subdivision, based on the finding that ___________________. Attachments ATTACHMENT 1- FINAL PLAT  3-6-19 Δ 3-6-19D 3-6-19SHEET 5 SHEET 4 SHEET 4 SHEET 6 SHEET 3 SHEET 4 3-6-19SHEET 5 SHEET 4 SHEET 6 SHEET 3 SHEET 3 SHEET 3 SHEET 5 SHEET 5 3-6-19SHEET 5 SHEET 4 SHEET 6 SHEET 3 SHEET 6 SHEET 6 SHEET 4 SHEET 4 3-6-19SHEET 5 SHEET 4 SHEET 6 SHEET 3 SHEET 5 SHEET 5 3-6-19 3-6-19 3-6-19 3-6-19    Town Council Regular and Study Session C. Meeting Date:03/20/2019   Requested by: Bayer Vella  Submitted By:Hannah Oden, Community and Economic Development Department:Community and Economic Development Information SUBJECT: Resolution No. (R)19-11, approving the dedication of public easements for Trail No. 331, Trail No. 33 and drainage maintenance and access associated with the Valley Vista subdivision located north of Tangerine Road and east of Rancho Vistoso Boulevard along the future Moore Road Loop extension  RECOMMENDATION: Staff recommends approval. This action implements design elements approved as part of prior rezoning conditions. EXECUTIVE SUMMARY: The purpose of this request is to consider the proposed dedication of easements for Trail No. 331, Trail No. 33, and a drainage maintenance and access easement associated with the Valley Vista subdivision (Attachment 1). The development is located north of Tangerine Road and east of Rancho Vistoso Boulevard along the future Moore Road Loop extension, as shown in Attachment 2.  These dedications were included as a condition of approval when the property was rezoned in December 2017 (Attachment 3). The condition requires dedication be completed and recorded concurrently with the Final Plat for the Valley Vista subdivision, which was approved by Town Council on January 9, 2019. Dedication of these items will provide permanent connections to the larger trail network that will be open for use by the public. Lastly, an easement is being provided to the Town for drainage maintenance and access to ensure the infrastructure continues to operate as planned.  BACKGROUND OR DETAILED INFORMATION: Prior Approvals  1987- Property annexed into Oro Valley as part of the Rancho Vistoso Planned Area Development. 2009- Major General Plan Amendment approved by Town Council. 2017- Type 1 (major) General Plan Amendment and Rezoning approved which included the subject property. 2019- Final Plat for the Valley Vista subdivision approved by Town Council. Discussion The property owner, VP II Loan LLC, is dedicating the easements for Trail No. 331 and Trail No. 33 to address a prior rezoning condition of approval. The sections of Trail No.331 and Trail No. 33 included as part of the dedication (Attachment 4) are located north of Tangerine Road and east of Ranch Vistoso Boulevard along the future Moore Road Loop extension. Both trails connect to the larger Oro Valley trail network and will be available for use as permanent, non-motorized public access easements. The portion of trails being dedicated are those located outside of the Pima County conservation easement. Lastly, a drainage easement (Attachment 5) is being dedicated to the Town for access and maintenance purposes to ensure the integrity of the infrastructure is maintained.  FISCAL IMPACT: Dedication of these previously approved design items requires ongoing trail maintenance by the Town's Park and Recreation Department and will require drainage maintenance by the Town's Public Works Department.  SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)19-11, accepting the dedication of easements for Trail No. 331, Trail No. 33, and a drainage easement to the Town. OR I MOVE to DENY Resolution No. (R)19-11, approving the dedication of easements for Trail No. 331, Trail No. 33 and a drainage easement to the Town based on the finding ______________________. Attachments Attachment 1: (R)19-11  Attachment 2: Location Map  Attachment 3: Rezoning Exhibit  Attachment 4: Trail Easements  Attachment 5: Drainage Maintenance and Access Easement  RESOLUTION NO. (R)19-11 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND ACCEPTING THE DEDICATION OF EASEMENTS FOR TRAIL NO. 331, TRAIL NO. 33 AND A DRAINAGE MAINTENANCE AND ACCESS EASEMENT ASSOCIATED WITH THE VALLEY VISTA SUBDIVISION LOCATED NORTH OF TANGERINE ROAD AND EAST OF RANCHO VISTOSO BOULEVARD ALONG THE FUTURE MOORE ROAD LOOP EXTENSION FROM VP II LOAN, LLC; AND DIRECTING THE TOWN MANAGER, TOWN CLERK AND TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, VP II Loan, LLC , desires to dedicate easements for Trail No. 331, Trail No. 33 and a drainage maintenance and access easement associated with the Valley Vista Subdivision located north of Tangerine Road and east of Rancho Vistoso Boulevard along the future Moore Road Loop Extension as depicted in Exhibit “A”; and WHEREAS, the Town desires to accept the dedication of Trail No. 331, Trail No. 33, and a drainage easement as part of a condition of approval from when the property was rezoned in December of 2017 and as part of the Final Plat for the Valley Vista subdivision which was approved by the Town Council on January 9, 2019 ; and WHEREAS, dedication will provide permanent connections to a lager trail network that will be open for use by the public; and WHEREAS, it is in the best interest of the Town of Oro Valley to accept the dedication of easements for Trail No. 331, Trail No. 33, and a drainage maintenance and access easement attached hereto as Exhibit “A” and incorporated by reference. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Town Manager and other administrative officials, or their designees, are hereby authorized to take such steps as necessary to accept the dedication. SECTION 2. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 20th day of March, 2019. TOWN OF ORO VALLEY, ARIZONA Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date Date EXHIBIT “A” Trail No. 331,Trail No. 33, and Drainage Maintenance and Access Easement Location Map Attachment 2 Trail No. 33 Trail No. 331 Drainage Maintenance and Access Easement N00°08'50"W2628.48'25 30 36 31 ACCESS EASEMENT 1 18,564 SF (0.4262 Acres) 229.20'S89°31'12"E 2593.91' L1 C1 L2L3L4 L5S89°50'40"W2633.73'S00°01'03"E128 129 131 133 167 166 168 134 58 59 56 57 54 55 53 52 51 50 49 135 130 132 (0.6094 Acres) 26,545 SF ACCESS EASEMENT 2 2642.78'C3 L10L11 L14 L9 L16 L19 L6 L7L8L15 L17 L18 36 31 25 30 Curve Table Curve # C1 C3 Delta 2°40'21" 2°23'05" Radius 562.00' 624.00' Chord Bearing S17°58'22"W S16°11'05"W Chord Length 26.21' 25.97' Arc Length 26.21' 25.97'3625Line Table Line # L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 Direction S89°31'12"E N89°31'12"W S89°50'40"W N15°47'59"E N89°50'40"E S89°31'12"E S27°01'51"E S02°58'12"W S87°01'48"E N02°58'12"E Length 164.90' 156.80' 585.14' 26.00' 578.06' 384.58' 25.07' 86.20' 34.00' 109.83' Line Table Line # L11 L12 L13 L14 L15 L16 L17 L18 L19 Direction S89°31'12"E N13°33'09"E N24°45'13"W N89°31'49"W S02°58'12"W N87°01'48"W N02°58'12"E N27°01'51"W N89°30'17"W Length 550.60' 25.65' 0.12' 565.28' 124.42' 10.00' 77.96' 51.85' 379.25' L12 L13 0'200' EXHIBIT TO ACCOMPANY DESCRIPTION OF RANCHO VISTOSO NEIGHBORHOOD 5 ACCESS EASEMENTS SECTION 36, T-11S, R-13E & SECTION 31, T-11S, R-14E, G.S.R.M., PIMA COUNTY, ARIZONA Inc. Q:\185050\PH-03 - RV NEIGH 5WX\EXHIBITS\LEGALS\EXHIBIT331.DWG 3/12/2019 5:24:48 PM 3 OF 3    Town Council Regular and Study Session D. Meeting Date:03/20/2019   Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Resolution No. (R)19-12, authorizing and approving an Employment Agreement for the Town Magistrate, George Dunscomb RECOMMENDATION: N/A EXECUTIVE SUMMARY: The current Town Magistrate Employment Agreement has a term ending April 6, 2019. Attached for review and approval is a new employment agreement for the period April 6, 2019 through April 6, 2021. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The town magistrate shall receive a salary adjustment on each anniversary date of this agreement for an amount equal to the highest merit increase percentage approved (if any) for other exempt employees in a given fiscal year. SUGGESTED MOTION: I MOVE to (approve/deny) Resolution No. (R)19-12, authorizing and approving an Employment Agreement for the Town Magistrate, George Dunscomb.  Attachments (R)19-12 Town Magistrate Employment Agreement  Town Magistrate Employment Agreement  RESOLUTION NO. (R)19-12 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN EMPLOYMENT AGREEMENT FOR THE TOWN MAGISTRATE, GEORGE DUNSCOMB ; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, The Employment Agreement for George Dunscomb, Town Magistrate, terminates on April 6, 2019; and WHEREAS, it is the desire of the Town to enter into a new Employment Agreement with George Dunscomb, Town Magistrate, for the period of April 6, 2019, through April 6, 2021; and WHEREAS, it is in the best interest of the Town to enter into the Employment Agreement with George Dunscomb, attached hereto as Exhibit “A” and incorporated herein by this reference, in order to set forth the terms and conditions of the Employment Agreement. NOW, THEREFORE BE IT RESOLVED by the Mayor and Council of the Town of Oro Valle y, that: SECTION 1. The Employment Agreement between the Town of Oro Valley and George Dunscomb, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby authorized and approved. SECTION 2. The Mayor and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Employment Agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 20th day of March, 2019. TOWN OF ORO VALLEY ____________________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ____________________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director _____________________________ ____________________________________ Date Date TOWN MAGISTRATE EMPLOYMENT AGREEMENT THIS AGREEMENT, made and entered into this 20th day of March, 2019 by and between the Town of Oro Valley, an Arizona municipal corporation (hereinafter “Town”) and George Dunscomb (hereinafter “Magistrate”). Pursuant to this agreement, Town herewith employs George Dunscomb as Town Magistrate for the Town of Oro Valley. Magistrate shall be deemed an employee of the Town pursuant to this agreement, and not an independent contractor. This contract shall commence on Apri l 6, 2019 and continue for a TWO (2) YEAR PERIOD (until April 6, 2021) from said date at the sole and spe cific request of the Magistrate as allowed by law and as an exemption to Oro Valley Town Code Section 5-2-1 as amended. Oro Valley Town Code Section 5-2-1 shall remain in full force an effect and George Dunscomb and the Town Council agree to this one exemption by agreeing to this contract. At the end of the specified two year period this contract between the parties shall cease, the position of Magistrate shall be opened to be filled pursuant to the normal provisions of Town Code Section 5-2-1, and George Dunscomb hereby agrees to waive any and all claims to any additional time or term(s). During the Magistrate’s term of office, Magistrate may be removed by the Town Council only for cause. This employment agreement is subject to the following additional ter ms and conditions: 1. Magistrate will fulfill the duties of the Town magistrate as provided by the State statutes and the Oro Valley Town Code Ordinances, and as defined by Arizona state law. 2. The Magistrate position is classified as a full -time, exempt employee of the Town and shall devote such time as is necessary and appropriate to conduct court business and manage the court resources. 3. Magistrate will assume the responsibilities of running the court system during the period of his employment. Such responsibilities shall carry with them all powers and duties associated with such position. 4. Magistrate shall be entitled to travel reimbursement (other than commuting) in accordance with Town Standard Operating Procedures or Administrative Directives. Magistrate shall be entitled to provisions of the Oro Valley Town Code, regulations and Personnel Policies and Procedures relating to vacation, paid holidays, and sick leave; retirement/pension plan participation; and other fringe benefits, working conditions, and Cost of Living Adjustments (COLA) as they now exist, or as they may be amended for the other exempt employees of the Town of Oro Valley, to the extent that they are consistent with the terms of this agreement. Finally, the Magistrate shall receive a salary adjustment on each anniversary date of this agreement for an amount equal to the highest merit increase percentage approved (if any) for other exempt employees in a given fiscal year. 5. Magistrate shall also be responsible for compliance with all Town polic ies, rules, and regulations regarding purchasing, money management and security; hiring, firing and personnel management; budgetary and financial constraints; and such other regulations to the extent that these do not conflict with Supreme Court Rules and Arizona case law. 6. Town agree s to pay Magistrate during the two years of this agreement the sum of ONE HUNDRED FIFTY SEVEN THOUSAND, FOUR HUNDRED AND FIFTY FIVE DOLLARS AND SEVENTY-NINE CENTS dollars ($157,455.79) PER ANNUM, subject to future adjustments as noted in item 4, above. Such amount shall be payable to the Magistrate in installments at the same time and in the same manner as other salaried employees on a bi -weekly basis and shall be subject to FICA, Social Security and other legally required withholdings. In the event Magistrate voluntarily chooses to serve less than his full term, is incapacitated, or is terminated for cause; the pay shall be pro -rated accordingly. Should Magistrate voluntarily decide to serve less than the full term of this agree ment, he shall give a minimum of thirty (30) days’ notice unless exempted from this provision by the Town Council. Notice pursuant to this agreement shall be given as follows: A. Employer Town Clerk’s Office Town of Oro Valley 11000 N. La Canada Drive Oro Valley, AZ 85737 B. Employee Town Magistrate’s Office Town of Oro Valley 11000 N. La Canada Drive Oro Valley, AZ 85737 IN WITNESS WHEREOF, the Town of Oro Valley caused this agreement to be signed and executed in its behal f by Joe Winfield, Mayor of the Town of Oro Valley, and duly attested by its Town Clerk, and Employee has signed and executed this agreement, both in duplicate, the day and year first above written. ____________________________ Joseph C. Winfield, Mayor ___________________________ George Dunscomb, Magistrate ATTEST: ___________________________ Mike Standish, Town Clerk APPROVED AS TO FORM: _______________________________ Tobin Sidles, Legal Services Director    Town Council Regular and Study Session E. Meeting Date:03/20/2019   Requested by: Jason Larter Submitted By:Catherine Hendrix, Police Department Department:Police Department Information SUBJECT: Resolution No. (R)19-13, 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 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: On March 1, 2019, the Police Department received notice of award for funding of overtime and mileage. The Town of Oro Valley wishes to enter into this subgrantee agreement with the Arizona Department of Homeland Security (AZDOHS) to fund overtime and mileage for officers deployed under the Operation Stonegarden program. This partnership between the Town, U.S. Customs and Border Protection and other federal and local law enforcement agencies brings unique benefits to the Town and its community. BACKGROUND OR DETAILED INFORMATION: The grant application was made in order to work in a regional partnership with other local law enforcement agencies and the U.S. Border Patrol Tucson Sector to reduce crime and improve the quality of life for the residents and visitors of Oro Valley. This grant will use targeted deployments of officers and canine units to impact the flow of smugglers engaged in human trafficking and illegal contraband, as well as possible terrorists who intend to cause harm or commit crimes against this nation. FISCAL IMPACT: The approved FY 2018/19 budget includes the capacity, in the appropriate category, for this award. The fiscal impact is $82,200 received by the Town through grant funding. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)19-13, 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. Attachments (R)19-13 Stonegarden OT & Mileage  Agreement Overtime-Mileage  C:\Windows\TEMP\BCL Technologies \easyPDF 7 \@BCL@7C201063\@BCL@7C201063.doc Town of Oro Valley Attorney’s Office/ca/012512 RESOLUTION NO. (R)19-13 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, 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 ; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, the Arizona Department of Homeland Security (AZDOHS) requires participating jurisdictions to enter into a Subgrantee Agreement to receive the funds granted under the Operation Stonegarden Program; and WHEREAS, the Town of Oro Valley’s allocation under the grant is a maximum of $82,200 which will be used to fund overtime and mileage under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection; and WHEREAS, it is in the best interest of the Town of Oro Valley to enter into the Subgrantee Agreement (attached hereto as Exhibit “A” and incorporated herein by this reference ) in order to receive funds which will be used to fund overtime and mileage under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection. NOW THEREFORE BE IT RESOLVED by the Mayor and Town Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Subgrantee Agreement between the Town of Oro Valley, for the benefit of the Oro Valley Police Department and the Arizona Department of Homeland Security, attached hereto as Exhibit “A” and incorporated herein by this reference, to fund overtime and mileage under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection is hereby authorized and approved. SECTION 2. The Mayor and 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 Subgrantee Agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 20th day of March, 2019. TOWN OF ORO VALLEY, ARIZONA Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 1 SUBRECIPIENT AGREEMENT OPERATION STONEGARDEN GRANT PROGRAM OVERTIME-MILEAGE 18-AZDOHS-OPSG- (Enter Subrecipient Agreement number above (e.g., 180XXX-XX) Between The Arizona Department of Homeland Security And (Enter the name of the Subrecipient Agency above) DUNS Number____________________ (Enter the DUNS number above) WHEREAS, A.R.S. section 41-4254 charges the Arizona Department of Homeland Security (AZDOHS) with the responsibility of administering funds. THEREFORE, it is agreed that the AZDOHS shall provide funding to the (Enter the name of the Subrecipient Agency above) (Subrecipient) for services under the terms of this Agreement (the “Agreement”). I. PURPOSE OF AGREEMENT The purpose of this Agreement is to specify the rights and responsibilities of AZDOHS in administering the distribution of homeland security grant funds to the Subrecipient, and to specify the rights and responsibilities of the Subrecipient as the recipient of these funds. II. PERIOD OF PERFORMANCE, TERMINATION AND AMENDMENTS This Agreement shall become effective on March 1, 2019 and shall terminate on February 29, 2020. The obligations of the Subrecipient as described herein will survive termination of this agreement. III. DESCRIPTION OF SERVICES The Subrecipient shall provide the services for AZDOHS as set forth in writing in Subrecipient’s grant application titled: “OPSG Overtime-Mileage” and funded at $ (as may have been modified by the award letter). (Enter funded award amount above) IV. MANNER OF FINANCING The AZDOHS shall under the U.S. Department of Homeland Security grant # EMW -2018-SS- 00004-S01 and CFDA #97.067: a) Provide up to $ to the Subrecipient for services provided under Paragraph III. (Enter funded award amount above) b) Payment made by the AZDOHS to the Subrecipient shall be on a reimbursement basis only and is conditioned upon receipt of proof of payment and applicable, accurate and complete reimbursement documents, as deemed necessary by the AZDOHS, to be submitted by the Subrecipient. A listing of acceptable documentation can be found at www.azdohs.gov. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 2 Payments will be contingent upon receipt of all reporting requirements of the Subrecipient under this Agreement. V. FISCAL RESPONSBILITY It is understood and agreed that the total amount of the funds used under this Agreement shall be used only for the project as described in the application and award documentation. Therefore, should the project not be completed, the subrecipient shall reimburse said funds directly to the AZDOHS immediately. If the project is completed at a lower cost than the original budget called for, the amount reimbursed to the subrecipient shall be for only the amount of dollars actually spent by the subrecipient in accordance with the approved application. For any funds received under this Agreement for which expenditure is disallowed by an audit exemption or otherwise by the AZDOHS, the State, or Federal government, the Subrecipient shall reimburse said funds directly to the AZDOHS immediately. VI. FINANCIAL AUDIT/PROGRAMMATIC MONITORING The Subrecipient agrees to comply with the record-keeping requirements and other requirements of A.R.S. section 35-214 and section 35-215. a) In addition, in compliance with the Federal Single Audit Act (31 U.S.C. part 7501-7507), as amended by the Single Audit Act Amendments of 1996 (P.L. 104 to 156), the Subrecipient must have a Single Audit or program specific audit conducted in accordance with 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) if the Subrecipient expends more than $750,000 from Federal awards in its previous fiscal year. If the Subrecipient has expended more than $750,000 in Federal dollars, a copy of the Subrecipient’s single audit or program specific audit report for the previous fiscal year and subsequent fiscal years that fall within the period of performance is due annually to AZDOHS within nine (9) months of the Subrecipient’s fiscal year end. b) Failure to comply with any requirements imposed as a result of an audit will suspend reimbursement by AZDOHS to the Subrecipient until the Subrecipient is in compliance with all such requirements. Additionally, the Subrecipient will not be eligible for any new awards until the Subrecipient is in compliance with all such requirements. c) Subrecipients who do not expend more than $750,000 in Federal dollars in the previous fiscal year and subsequent fiscal years that fall within the period of performance must submit to AZDOHS via audits@azdohs.gov, a statement stating they do not meet the threshold and therefore do not have to complete a single audit or program specific audit. d) Subrecipient will be monitored periodically by AZDOHS, both programmatically and financially, to ensure that the project goals, objectives, performance requirements, timelines, milestone completion, budgets, and other related program criteria are being met. Monitoring will be accomplished through a combination of office-based reviews and on-site monitoring visits. Monitoring can involve aspects of the work involved under this Agreement including but not limited to the review and analysis of financial, programmatic, equipment, performance, and administrative issues relative to each program and will identify areas where technical assistance and other support may be needed. Subrecipient shall participate in and cooperate with all such monitoring by AZDOHS, and shall provide access to all personnel, documents, and other records as may be requested from time to time by AZDOHS. Subrecipient also shall comply with all requests of AZDOHS that AZDOHS deems necessary to assure the parties’ compliance with their obligations under this Agreement. VII. APPLICABLE REGULATIONS The Subrecipient must comply with the applicable Notice of Funding Opportunity (NOFO), Office of Management and Budget Code of Federal Regulations (CFR) 2 CFR 200: Uniform Guidance. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 3 The NOFO for this program is hereby incorporated into your award agreement by reference. By accepting this award, the Subrecipient agrees that all allocation and use of funds under this grant will be in accordance with the requirements contained in the NOFO. Davis Bacon Act HSGP Program subrecipients using funds for construction projects must comply with the Davis- Bacon Act (40 U.S.C. 3141 et seq.). Subrecipients must obtain written approval from AZDOHS prior to use of any HSGP funds for construction or renovation. Subrecipients must ensure that their contractors or subcontractors for construction projects pay workers no less than the prevailing wages for laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the state in which the work is to be performed. Additional information regarding compliance with the Davis-Bacon Act, including Department of Labor (DOL) wage determinations, is available from the following website http://www.dol.gov/compliance/laws/comp-dbra.htm. Insurance Coverage The Subrecipient affirms the organization maintain insurance coverage as described in 2 CFR 200.310. The non-Federal (Subrecipient) entity must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property owned by the non-Federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award. National Incident Management System (NIMS) The Subrecipient agrees to remain in compliance with National Incident Management System (NIMS) implementation initiatives as outlined in the applicable NOFO. Environmental Planning and Historic Preservation The Subrecipient shall comply with Federal, State and Local environmental and historical preservation (EHP) regulations, laws and Executive Orders as applicable. Subrecipients proposing projects that have the potential to impact the environment, including but not limited to construction of communication towers, modification or renovation of existing buildings, structures and facilities, or new construction including replacement of facilities, must participate in the Department of Homeland Security (DHS)/Federal Emergency Management Agency (FEMA) EHP review process. The EHP review process involves the submission of a detailed project description that explains the goals and objectives of the proposed project along with supporting documentation so that DHS/FEMA may determine whether the proposed project has the potential to impact environmental resources and/or historic properties. In some cases, DHS/FEMA is also required to consult with other regulatory agencies and the public in order to complete the review process. The EHP review process must be completed before funds are released to carry out the proposed project. If ground disturbing activities occur during project implementation, the Subrecipient must ensure monitoring of ground disturbance and if any archeological resources are discovered, the Subrecipient shall immediately cease construction in that area and notify FEMA, AZDOHS and the appropriate State Historic Preservation Office. DHS/FEMA will not fund projects that are initiated without the required EHP review. Additionally, all recipients are required to comply with DHS/FEMA EHP Policy Guidance. This EHP Policy Guidance can be found in FP 108-023-1, Environmental Planning and Historic Preservation Policy Guidance. In addition to the above mentioned guidance documents, the following provisions must be adhered to: 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 4 Consultants/Trainers/Training Providers Invoices for consultants/trainers/training providers must include at a minimum: a description of services; dates of services; number of hours for services performed; rate charged for services; and, the total cost of services performed. Consultant/trainer/training provider costs must be within the prevailing rates; must be obtained under consistent treatment with the procurement policies of the Subrecipient and 2 CFR 200; and shall not exceed the maximum of $450 per day per consultant/trainer/training provider unless prior written approval is granted by the AZDOHS. This includes internal personnel hired on backfill/overtime to deliver training. In addition to the per day $450 maximum amount, the consultant/trainer/training provider may be reimbursed reasonable travel, lodging, meal and incidental expenses not to exceed the State rate. Itemized receipts are required for lodging and travel reimbursements. The Subrecipient will not be reimbursed costs other than travel, lodging, meals and incidentals on travel days for consultants/trainers/training providers. See Travel Costs below. Contractors/Subcontractors The Subrecipient may enter into written subcontract(s) for performance of certain of its functions under the Agreement in accordance with terms established in 2 CFR 200 and the applicable NOFO. The Subrecipient agrees and understands that no subcontract that the Subrecipient enters into with respect to performance under this Agreement shall in any way relieve the Subrecipient of any responsibilities for performance of its duties. The Subrecipient shall give the AZDOHS immediate notice in writing by certified mail of any action or suit filed and prompt notice of any claim made against the Subrecipient by any subcontractor or vendor which, in the opinion of the Subrecipient, may result in litigation related in any way to this Agreement. Travel Costs All grant funds expended for travel, lodging, meals and incidentals must be consistent with the subrecipient’s policies and procedures, as well as the State of Arizona Accounting Manual (SAAM). These policies must be applied uniformly to both federally financed and other activities of the agency. AZDOHS will reimburse at the most restrictive allowability and rate. At no time will the Subrecipient’s reimbursement(s) exceed the State rate established by the Arizona Department of Administration, General Accounting Office Travel Policies: https://gao.az.gov. Procurement The Subrecipient shall comply with its own procurement rules/policies and must also comply with Federal procurement rules/policies and all Arizona state procurement code provisions and rules. The Federal intent is that all Homeland Security Funds are awarded competitively. The Subrecipient shall not enter into a Noncompetitive (Sole or Single Source) Procurement Agreement, unless prior written approval is granted by the AZDOHS via the Noncompetitive Procurement Request Form. The Noncompetitive Procurement Request Form and instructions are located on the AZDOHS website: www.azdohs.gov. Training and Exercise The Subrecipient agrees that any grant funds used for training and exercise must be in compliance with the applicable NOFO. All training must be included and approved in your application and/or approved through the DEMA/AZDOHS training request process prior to execution of training contract(s). All exercises must utilize and comply with the FEMA Homeland Security Exercise and Evaluation Program (HSEEP) guidance for exercise design, development, conduct, evaluation and reporting. The Subrecipient agrees to: a) Submit an exercise summary and attendance/sign-in roster to AZDOHS with all related reimbursement requests. b) Email the After Action Report/Improvement Plan (AAR/IP) to the local County Emergency Manager, the AZDOHS Strategic Planner, and the Arizona Department of Military Affairs 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 5 (DEMA) Exercise Branch within 90 days of completion of an exercise or as prescribed by the most current HSEEP guidance. Communications Equipment All Land Mobile Radio equipment purchased with Homeland Security funds is required to comply with the following: a) P25 standards; b) SAFECOM Guidance; c) Land Mobile Radio Minimum Equipment Standards as approved by the Statewide Interoperability Executive Committee (SIEC); and d) Arizona's State Interoperable Priority Programming Guide also as approved by the SIEC. Nonsupplanting Agreement The Subrecipient shall not use funds received under this Agreement to supplant Federal, State, Tribal or Local funds or other resources that would otherwise have been made available for this program/project. The Subrecipient may be required to demonstrate and document that a reduction in non-Federal resources occurred for reasons other than the receipt of expected receipt of Federal funds. Further, if a position created by a grant is filled from within, the vacancy created by this action must be filled within thirty (30) days. If the vacancy is not filled within thirty (30) days, the Subrecipient must stop charging the grant for the new position. Upon filling the vacancy, the Subrecipient may resume charging for the grant position. E-Verify Compliance requirements for A.R.S. section 41-4401—immigration laws and E-Verify requirement. a) The Subrecipient warrants its compliance with all State and Federal immigration laws and regulations relating to its employees and to employees of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, including but not limited to A.R.S. section 23-214, Subsection A (that subsection reads: “After December 31, 2007, every employer, after hiring an employee, shall verify the employment eligibility of the employee through the E-Verify program”). b) A breach of a warranty by Subrecipient regarding compliance with immigration laws and regulations shall be deemed a material breach of this Agreement and the Subrecipient may be subject to penalties to be determined at AZDOHS’s discretion, up to and including termination of this Agreement. c) The AZDOHS retains the legal right to inspect the papers of any Subrecipient employee who works on the Agreement, and to those of any employee of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, to ensure that the Subrecipient is complying with the warranty under paragraph (a) above. Property Control Effective control and accountability must be maintained by Subrecipient for all property/equipment purchased under this Agreement. The Subrecipient must adequately safeguard all such property/equipment and must assure that it is used for authorized purposes as described in the NOFO, grant application, and Code of Federal Regulations 2 CFR 200. The Subrecipient shall exercise caution in the use, maintenance, protection and preservation of such property. a) Property/equipment shall be used by the Subrecipient in the program or project for which it was acquired as long as needed, whether or not the program or project continues to be supported by federal grant funds. Subrecipient is required to maintain and utilize equipment as outlined in 2 CFR 200.313 - Equipment. Any loss, damage, or theft shall be investigated and reported to the AZDOHS. Any equipment lost, damaged or stolen shall be replaced by 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 6 the Subrecipient at the Subrecipient’s expense and an updated Property Control Form submitted to AZDOHS. b) Nonexpendable Property/Equipment and Capital Assets: a. Nonexpendable Property/Equipment is property which has a continuing use, is not consumed in use, is of a durable nature with an expected service life of one or more years, has an acquisition cost of $5,000 (Five Thousand Dollars) or more, and does not become a fixture or lose its identity as a component of other equipment or systems. b. A Capital Asset is any personal or real property, or fixture that has an acquisition cost of $5,000 (Five Thousand Dollars) or more per unit and a useful life of more than one year. c) A Property Control Form (if applicable) shall be maintained for the entire scope of the program or project for which property was acquired through the end of its useful life and/or disposition. All Nonexpendable Property and Capital Assets must be included on the Property Control Form. The Subrecipient shall provide AZDOHS a copy of the Property Control Form with the final quarterly programmatic report. The Property Control Form can be located at www.azdohs.gov. The Subrecipient agrees to be subject to equipment monitoring and auditing by state or federal authorized representatives to verify information. d) A physical inventory of Nonexpendable Property/Equipment and Capital Assets must be taken and the results reconciled with the Property Control Form at least once every two years. a. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated and reported to AZDOHS. b. Adequate maintenance procedures must be developed to keep the property in good condition. e) When Nonexpendable Property/Equipment and/or Capital Assets are no longer in operational use by the Subrecipient, an updated Property Control Form must be submitted to AZDOHS immediately. The disposition of equipment shall be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200. If the Subrecipient is requesting disposition of Capital Assets for reasons other than theft, destruction, or loss, the Subrecipient must submit an Equipment Disposition Request Form and receive approval prior to the disposition. The Equipment Disposition Request Form can be found at www.azdohs.gov. f) Equipment Record Retention a. 2 CFR 200.333 (c): Records for real property and equipment acquired with Federal funds must be retained for three (3) years after final disposition. Allowable Costs The allowability of costs incurred under this agreement shall be determined in accordance with the general principles of allowability and standards for selected cost items as set forth in the applicable Code of Federal Regulations, authorized equipment lists, and guidance documents referenced above. a) The Subrecipient agrees that grant funds for any indirect costs that may be incurred are in accordance with 2 CFR 200 and the applicable NOFO. Indirect costs must be applied for and approved in writing by the AZDOHS prior to expenditure and reimbursement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 7 b) The Subrecipeint agrees that grant funds are not to be expended for any Management and Administrative (M&A) costs that may be incurred by the Subrecipient for administering these funds unless explicitly applied for and approved in writing by the AZDOHS and shall be in compliance with the applicable NOFO. VIII. DEBARMENT CERTIFICATION The Subrecipient agrees to comply with the Federal Debarment and Suspension regulations as outlined in the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions.” All recipients must comply with Executive Orders 12549 and 12689, and 2 CFR 200.213 which provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. IX. FUNDS MANAGEMENT The Subrecipient must maintain funds received under this Agreement in separate ledger accounts and cannot mix these funds with funds from other sources. The Subrecipient must manage funds according to applicable Federal regulations for administrative requirements, costs principles, and audits. The Subrecipient must maintain adequate business systems to comply with Federal requirements. The business systems that must be maintained are: • Financial Management • Procurement • Personnel • Property • Travel A system is adequate if it is 1) written; 2) consistently followed – it applies in all similar circumstances; and 3) consistently applied – it applies to all sources of funds. X. REPORTING REQUIREMENTS Regular reports by the Subrecipient shall include: a) Programmatic Reports The Subrecipient shall provide quarterly programmatic reports to the AZDOHS within fifteen (15) calendar days of the last day of the quarter in which services are provided. The Subrecipient shall use the form provided by the AZDOHS to submit quarterly programmatic reports. The report shall contain such information as deemed necessary by the AZDOHS. The Subrecipient shall use the Quarterly Programmatic Report form, which is posted at www.azdohs.gov. Quarterly programmatic reports shall be submitted to the AZDOHS until the entire scope of the project is completed. If the scope of the project has been fully completed and implemented, and there will be no further updates, then the quarterly programmatic report for the quarter in which the project was completed will be sufficient as the final report. The report should be marked as final and should be inclusive of all necessary and pertinent information regarding the project as deemed necessary by the AZDOHS. b) Subrecipients must provide substantial/detailed information as to the status of completion of the milestones included in the application. Failure to adequately provide complete information will result in the Quarterly Report being rejected and resubmission will be required. c) Quarterly Programmatic Reports are due: January 15 (for the period from October 1– December 31) April 15 (for the period from January 1 – March 31) July 15 (for the period from April 1 – June 30) 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 8 October 15 (for the period from July 1 – September 30) d) Final Quarterly Report: The final quarterly report is due no more than fifteen (15) calendar days after the end of the performance period. Subrecipient may submit a final quarterly report prior to the end of the performance period if the scope of the project has been fully completed and implemented. The Property Control Form is due with the final quarterly report (if applicable). e) Property Control Form – if applicable: The Subrecipient shall provide the AZDOHS a copy of the Property Control Form with the final quarterly report. a. In case of equipment disposition: The Property Control Form shall be updated and a copy provided to AZDOHS no more than forty-five (45) calendar days after equipment disposition, if applicable. The disposition of equipment must be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200.313. f) Financial Reimbursements The Subrecipient shall provide AZDOHS with requests for reimbursement as frequently as monthly but not less than quarterly. Reimbursement requests are only required when expenses have been incurred. Reimbursement requests shall be submitted with the Reimbursement Form provided by the AZDOHS staff. The Subrecipient shall submit a final reimbursement request for expenses received and invoiced prior to the end of the period of performance. The final reimbursement must be received by AZDOHS no more than forty-five (45) calendar days after the end of the period of performance. Requests for reimbursement received by AZDOHS later than forty-five (45) calendar days after the end of the period of performance will not be paid. The final reimbursement request as submitted shall be marked as final. Subrecipients will only be reimbursed for expenses that have been obligated, expended and received within the authorized Period of Performance as identified in Section II of this Agreement. Subrecipients are not authorized to obligate or expend funds prior to the start date of the Period of Performance. Any expenses obligated or expended prior to the Period of Performance start date will be deemed unallowable and will not be reimbursed. Any expenses/services that occur beyond the Period of Performance (i.e. cell phone service) will be deemed unallowable and will not be reimbursed. The AZDOHS requires that all requests for reimbursement are submitted via United States Postal Service, FedEx, UPS, etc. or in person. Reimbursement requests submitted via fax or by any electronic means will not be accepted. The AZDOHS reserves the right to request and/or require any supporting documentation and/or information it feels necessary in order to process reimbursements. Subrecipient shall promptly provide AZDOHS with all such documents and/or information. All reports shall be submitted to the contact person as described in Paragraph XXXVII, NOTICES, of this Agreement. XI. ASSIGNMENT AND DELEGATION The Subrecipient may not assign any rights hereunder without the express, prior written consent of both parties. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 9 XII. AMENDMENTS Any change in this Agreement including but not limited to the Description of Services and budget described herein, whether by modification or supplementation, must be accomplished by a formal Agreement amendment signed and approved by and between the duly authorized representative of the Subrecipient and the AZDOHS. In the event of any new legislation, laws, ordinances, or rules affecting this Agreement, the parties agree that the terms of this Agreement shall automatically incorporate the terms of such new legislation, laws, ordinances, or rules. Any such amendment shall specify: 1) an effective date; 2) any increases or decreases in the amount of the Subrecipient’s compensation, if applicable; 3) be titled as an “Amendment,” and 4) be signed by the parties identified in the preceding paragraph. The Subrecipient expressly and explicitly understands and agrees that no other method of communication, including any other document, correspondence, act, or oral communication by or from any person, shall be used or construed as an amendment or modification or supplementation to this Agreement. XIII. US DEPARTMENT OF HOMELAND SECURITY AGREEMENT ARTICLES Article A - Disposition of Equipment Acquired Under the Federal Award When original or replacement equipment acquired in conjunction with this Agreement by the Subrecipient is no longer needed for the original project or program or for other activities currently or previously supported by DHS/FEMA, the Subrecipient must request instructions from DHS/FEMA via AZDOHS by submitting an Equipment Disposition Request Form in order to make proper disposition of the equipment pursuant to 2 CFR section 200.313. Article B – Acceptance of Post Award Changes In the event FEMA determines that changes are necessary to this Agreement after it has been entered into, including changes to period of performance or terms and conditions, the Subrecipient will be notified of the changes in writing. Once notification has been made, any subsequent request for funds by Subrecipient will constitute Subrecipient’s acceptance of the changes to this Agreement and the incorporation of such changes into this Agreement. Article C - Procurement of Recovered Materials The Subrecipient hereby acknowledges and agrees that it must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and that the requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. Article D - Whistleblower Protection Act The Subrecipient hereby acknowledges and agrees that it must comply with the statutory requirements for whistleblower protections (if applicable) at 10 U.S.C section 2409, 41 U.S.C. 4712, and 10 U.S.C. section 2324, 41 U.S.C. section 4304 and 4310. Article E - Use of DHS Seal, Logo and Flags Subrecipient hereby acknowledges that it must obtain DHS’s approval prior to using the DHS seal(s), logos, crests or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags or likenesses of Coast Guard officials. Article F - USA Patriot Act of 2001 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. section 175–175c. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 10 Article G – Universal Identifier and System of Award Management (SAM) Subrecipient hereby acknowledges and agrees that is must comply with the requirements set forth in the government-wide financial assistance award term regarding the System for Award Management and Universal Identifier Requirements located at 2 C.F.R. Part 25, Appendix A. Article H - Reporting of Matters Related to Recipient Integrity and Performance If the total value of your currently active grants, cooperative agreements, and procurement contracts from all Federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this Federal award, you must comply with the requirements set forth in the government-wide Award Term and Condition for Recipient Integrity and, Performance Matters located at 2 C.F.R. Part 200 Appendix XII, the full text of which is incorporated here by reference in the terms and conditions of your award. Article I - Rehabilitation Act of 1973 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. section 794, as amended, which provides that no otherwise qualified handicapped individual in the United States will, solely by reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. These requirements pertain to the provision of benefits or services as well as to employment. Article J - Trafficking Victims Protection Act of 2000 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the government-wide award term which implements Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. section 7104). The award term is located at 2 C.F.R. Part 175, the full text of which is incorporated here by reference. Article K - Terrorist Financing The Subrecipient hereby acknowledges and agrees that it must comply with U.S. Executive Order 13224 and U.S. law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. It is the legal responsibility of the Subrecipient to ensure compliance with the Order and laws. Article L - SAFECOM The Subrecipient hereby acknowledges and agrees that recipients who receive awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications. Article M - Reporting Subawards and Executive Compensation All Subrecipients are required to comply with the requirements set forth in the government-wide Award Term on Reporting Subawards and Executive Compensation located at 2 CFR Part 170, Appendix A, the full text of which is incorporated here by reference in the terms and conditions of your award. Article N – Department and Suspension The Subrecipient hereby acknowledges and agrees that it is subject to the non-procurement debarment and suspension regulations implementing Executive Orders (E.O.) 12549 and 12689, and 2 C.F.R. Part 180. These regulations restrict Federal financial assistance awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 11 Article O - Copyright The Subrecipient hereby acknowledges and agrees that it must affix the applicable copyright notices of 17 U.S.C. sections 401 or 402 and an acknowledgement of Government sponsorship (including award number) to any work first produced under Federal financial assistance awards. Article P - Civil Rights Act of 1964 - Title VI The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. section 2000d et seq.), codified at 6 C.F.R. Part 21 and 44 C.F.R. Part 7, which provides that no person in the United States will, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Article Q - Best Practices for Collection and Use of Personally Identifiable Information (PII) The Subrecipient hereby acknowledges and agrees that if they collect PII they are required to have a publically-available privacy policy that describes standards on the usage and maintenance of PII they collect. DHS defines personally identifiable information (PII) as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. Recipients may also find the DHS Privacy Impact Assessments: Privacy Guidance and Privacy template as useful resources respectively. Article R - Americans with Disabilities Act of 1990 The Subrecipient hereby acknowledges and agrees that it shall comply with all State and Federal equal opportunity and non-discrimination requirements and conditions of employment, including but not limited to Arizona Executive Order 2009-9 and the requirements of Titles I, II, and III of the Americans with Disabilities Act, which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. sections 12101–12213). Article S - Age Discrimination Act of 1975 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Age Discrimination Act of 1975 (42 U.S.C. section 6101 et seq.), which prohibits discrimination on the basis of age in any program or activity receiving Federal financial assistance. Article T - Activities Conducted Abroad The Subrecipient hereby acknowledges and agrees that it must ensure that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained. Article U - Acknowledgement of Federal Funding from DHS The Subrecipient hereby acknowledges and agrees that it must acknowledge its use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. Article V - DHS Specific Acknowledgements and Assurances Subrecipient hereby acknowledges and agrees—and agrees to require any contractors, successors, transferees, and assignees acknowledge and agree—to comply with applicable provisions governing DHS access to records, accounts, documents, information, facilities, and staff. 1. Subrecipient hereby agrees to cooperate with any compliance review or complaint investigation conducted by DHS. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 12 2. Subrecipient hereby agrees to give DHS access to and the right to examine and copy records, accounts, and other documents and sources of information related to the grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by DHS regulations and other applicable laws or program guidance. 3. Subrecipient hereby agrees to submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. 4. Subrecipient hereby agrees to comply with all other special reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. 5. If, during the past three years, the Subrecipient has been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, the Subrecipient shall provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements to the DHS financial assistance office and the DHS Office of Civil Rights and Civil Liberties (CRCL) by email at crcl@hq.dhs.gov or by mail at U.S. Department of Homeland Security Office of Civil Rights and Civil Liberties Building 410, Mail Stop #0190 Washington, D.C. 20528. 6. In the event any court or administrative agency makes a finding of discrimination by Subrecipient (or any of its contractors or subcontractors involved in providing goods or services under this Agreement) on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against the recipient, or the recipient settles a case or matter alleging such discrimination, Subrecipient must forward a copy of the complaint and findings to the DHS financial assistance office and the CRCL office by email or mail at the addresses listed above. Subrecipient hereby acknowledges and agrees that the United States has the right to seek judicial enforcement of these obligations. Article W - Assurances, Administrative Requirements and Cost Principles, and Audit Requirements The Subrecipient hereby acknowledges and agrees that it must complete OMB Standard Form 424B Assurances – Non-Construction Programs, or OMB Standard Form 424D Assurances – Construction Programs as applicable. Certain assurances in this document may not be applicable to this Agreement, and the awarding agency may require applicants to certify additional assurances. Please contact the program awarding office if you have any questions. DHS financial assistance recipients are required to follow the applicable provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located at Title 2, Code of Federal Regulations, Part 200, and adopted by DHS at 2 C.F.R. Part 3002. Article X - Patents and Intellectual Property Rights Unless otherwise provided by law, the Subrecipient hereby acknowledges and agrees that it is subject to the Bayh-Dole Act, Pub. L. No. 96-517, as amended, and codified in 35 U.S.C. section 200 et seq., and that it is subject to the specific requirements governing the development, reporting, and disposition of rights to inventions and patents resulting from financial assistance awards are in 37 CFR Part 401 and the standard patent rights clause in 37 CFR section 401.14. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 13 Article Y – Notice of Funding Opportunity Requirements All of the instructions, guidance, limitations, and other conditions set forth in the Notice of Funding Opportunity (NOFO) for this program are incorporated here by reference in the award terms and conditions. The Subrecipient hereby acknowledges and agrees that it must comply with any such requirements set forth in the program NOFO. Article Z – Non-supplanting Requirement The Subrecipient receiving Federal financial assistance awards made under programs that prohibit supplanting by law must ensure that Federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non-Federal sources. Article AA – Nondiscrimination in Matters Pertaining to Faith-Based Organizations It is DHS policy to ensure the equal treatment of faith-based organizations in social service programs administered or supported by DHS or its component agencies, enabling those organizations to participate in providing important social services to beneficiaries. All Subrecipients must comply with the equal treatment policies and requirements contained in 6 CFR Part 19 and other applicable statutes, regulations, and guidance governing the participations of faith-based organizations in individual DHS programs. Article AB – National Environmental Policy Act All Subrecipients must comply with the requirements of the National Environmental Policy Act (NEPA) 42 U.S.C. 4321 et seq., and the Council on Environmental Quality (CEQ) Regulations (40 C.F.R. 1500-1508) for Implementing the Procedural Provisions of NEPA, which requires Subrecipients to use all practicable means within their authority, and consistent with other essential considerations of national policy, to create and maintain conditions under which people and nature can exist in productive harmony and fulfill the social, economic, and other needs of present and future generations of Americans. Article AC - Lobbying Prohibitions The Subrecipient hereby acknowledges and agrees that it must comply with 31 U.S.C. section 1352, and acknowledges and agrees that none of the funds provided under this Agreement may be used to pay any person to influence, or attempt to influence an officer or employee of any agency (whether State or Federal), a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action related to a Federal award or contract, including any extension, continuation, renewal, amendment, or modification. Article AD - Limited English Proficiency (Civil Rights Act of 1964, Title VI) The Subrecipient hereby acknowledges and agrees that it must comply with the Title VI of the Civil Rights Act of 1964 (Title VI) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP) to their programs and services. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance https://www.dhs.gov/guidance-published-help- department-supported-organizations-provide-meaningful-access-people-limited and additional resources on http://www.lep.gov. Article AE - Hotel and Motel Fire Safety Act of 1990 In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. section 2225(a), the Subrecipient hereby acknowledges and agrees that it must ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. section 2225. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 14 Article AF - Fly America Act of 1974 The Subrecipient hereby acknowledges and agrees that it must comply with the following Preference for U.S. Flag Air Carriers: Travel supported by U.S. Government funds requirement, which states preference for the use of U.S. flag air carriers (air carriers holding certificates under 49 U.S.C. section 41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. section 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B138942. Article AG - Federal Leadership on Reducing Text Messaging while Driving All Subrecipients are encouraged to adopt and enforce policies that ban text messaging while driving as described in Executive Order 13513, including conducting initiatives described in Section 3(a) of the Order when on official Government business or when performing any work for or on behalf of the federal government. Article AH - Federal Debt Status The Subrecipient hereby acknowledges and agrees that it is required to be non-delinquent in their repayment of any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129. Article AI - False Claims Act and Program Fraud Civil Remedies The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The False Claims Act (31 U.S.C. Section 3729) which prohibits the submission of false or fraudulent claims for payment to the Federal government. See also 38 U.S.C. sections 3801-3812 which details the administrative remedies for false claims and statements made. Article AJ - Energy Policy and Conservation Act The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The Energy Policy and Conservation Act (42 U.S.C. Chapter 77) which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act. Article AK - Education Amendments of 1972 (Equal Opportunity in Education Act) – Title IX The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. section 1681 et seq.), which provides that no person in the United States will, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving Federal financial assistance. These regulations are codified at 6 CFR Part 17 and 44 CFR Part 19. Article AL - Duplication of Benefits Any cost allocable to a particular Federal award, provided for in 2 CFR Part 200, Subpart E may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by Federal statutes, regulations, or terms and conditions of the Federal awards, or for other reasons. However, this prohibition would not preclude a Subrecipient form shifting costs that are allowable under two or more Federal awards in accordance with existing Federal statutes, regulations, or the terms and conditions of the Federal award. Article AM - Drug-Free Workplace Regulations The Subrecipient hereby acknowledges and agrees that it must comply drug-free workplace requirements in Subpart B (or Subpart C, if the Subrecipient is an individual) of 2 C.F.R. part 30001, which adopts the Government-wide implementation (2 C.F.R. part 182) of sec. 5152-5158 of the Drug-Free Workplace Act of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 8101). 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 15 Article AN - Civil Rights Act of 1968 The Subrecipient hereby acknowledges and agrees that it must comply with Title VIII of the Civil Rights Act of 1968, which prohibits recipients from discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision of services in connection therewith, on the basis of race, color, national origin, religion, disability, familial status, and sex (42 U.S.C. section 3601 et seq.), as implemented by the Department of Housing and Urban Development at 24 CFR Part 100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units—i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators)—be designed and constructed with certain accessible features (see 24 CFR section 100.201). XIV. OFFSHORE PERFORMANCE OF WORK PROHIBITED Due to security and identity protection concerns, all services under this Agreement shall be performed within the borders of the United States. All storage and processing of information shall be performed within the borders of the United States. This provision applies to work performed by the Subrecipient’s contractors and subcontractors at all tiers. XV. AGREEMENT RENEWAL This Agreement shall not bind nor purport to bind the AZDOHS for any contractual commitment in excess of the original Agreement period. XVI. RIGHT TO ASSURANCE If the AZDOHS in good faith has reason to believe that the Subrecipient does not intend to, or is unable to perform or continue performing under this Agreement, the AZDOHS may demand in writing that the Subrecipient give a written assurance of intent to perform. If the Subrecipient fails to provide written assurance within the number of days specified in the demand, the AZDOHS at its option may terminate this Agreement. XVII. CANCELLATION FOR CONFLICT OF INTEREST The AZDOHS may, by written notice to the Subrecipient, immediately cancel this Agreement without penalty or further obligation pursuant to A.R.S. section 38-511 if any person significantly involved in initiating, negotiating, securing, drafting, or creating the Agreement on behalf of the State or its subdivisions (unit of Local Government) is an employee or agent of any other party in any capacity or a consultant to any other party to the Agreement with respect to the subject matter of the Agreement. Such cancellation shall be effective when the parties to the Agreement receive written notice from the AZDOHS, unless the notice specifies a later time. XVIII. THIRD PARTY ANTITRUST VIOLATIONS The Subrecipient hereby assigns to the State of Arizona any claim for overcharges resulting from antitrust violations to the extent that such violations concern materials or services supplied by third parties to Subrecipient toward fulfillment of this Agreement. XIX. AVAILABILITY OF FUNDS Every payment obligation of the AZDOHS under this Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such obligations under A.R.S. section 35-154. If the funds are not allocated and available for the continuance of this Agreement, the AZDOHS may terminate this Agreement at the end of the period for which funds are available. No liability shall accrue to the AZDOHS in the event this provision is exercised, and the AZDOHS shall not be obligated or liable for any future payments or for any damages as a result of termination under this paragraph, including purchases and/or contracts entered into by the Subrecipient in the execution of this Agreement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 16 XX. FORCE MAJEURE If either party hereto is delayed or prevented from the performance of any act required in this Agreement by reason of acts of God, strikes, lockouts, labor disputes, civil disorder, or other causes without fault and beyond the control of the party obligated, performance of such act will be excused for the period of the delay. XXI. PARTIAL INVALIDITY Any term or provision of this Agreement that is hereafter declared contrary to any current or future law, order, regulation, or rule, or which is otherwise invalid, shall be deemed stricken from this Agreement without impairing the validity of the remainder of this Agreement. XXII. ARBITRATION In the event of any dispute arising under this Agreement, written notice of the dispute must be provided to the other party within thirty (30) calendar days of the events giving the rise to the dispute. Any claim made by or against the State or any of its political subdivisions (including but not limited to AZDOHS) relating to this Agreement shall be resolved through the administrative claims process. In the event that the parties would otherwise be in court and/or if A.R.S. section 12-1518 applies, the parties shall proceed in arbitration through the American Arbitration Association (“AAA”), with the arbitrator to be selected pursuant to AAA rules and the arbitration to be conducted according to the applicable AAA rules, and with the costs of arbitration (including but not limited to the arbitrator’s fees and costs) to be divided 50/50 between the parties, subject to reallocation between the parties by the arbitrator. In the event that the parties become involved in litigation with each other relating to this Agreement for any reason in any other forum, both parties agree to have any claim(s) resolved in arbitration on the terms set forth in this part XXII. Any arbitration award may be enforced through the Maricopa County Superior Court or the U.S. District Court located in Phoenix, Arizona. XXIII. GOVERNING LAW AND CONTRACT INTERPRETATION a) This Agreement shall be governed and interpreted in accordance with the laws of the State of Arizona. b) This Agreement is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms in this document. c) Either party’s failure to insist on strict performance of any term or condition of the Agreement shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object. XXIV. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and may not be changed or added to except by a writing signed by all parties hereto in conformity with Paragraph XII, AMENDMENTS. The Subrecipient agrees to comply with any such amendment within ten (10) business days of receipt of a fully executed amendment. All prior and contemporaneous agreements, representations, and understandings of the parties, oral, written, pertaining to the subject matter hereof, are hereby superseded or merged herein. XXV. LICENSING The Subrecipient, unless otherwise exempted by law, shall obtain and maintain all licenses, permits, and authority necessary to perform those acts it is obligated to perform under this Agreement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 17 XXVI. SECTARIAN REQUESTS Funds disbursed pursuant to this Agreement may not be expended for any sectarian purpose or activity, including sectarian worship or instruction in violation of the United States or Arizona Constitutions. XXVII. ADVERTISING AND PROMOTION OF AGREEMENT The Subrecipient shall not advertise or publish information for commercial benefit concerning this Agreement without the written approval of the AZDOHS. XXVIII. OWNERSHIP OF INFORMATION, PRINTED AND PUBLISHED MATERIAL The AZDOHS reserves the right to review and approve any publications funded or partially funded through this Agreement. All publications funded or partially funded through this Agreement shall recognize the AZDOHS and the U.S. Department of Homeland Security. The U.S. Department of Homeland Security and the AZDOHS shall have full and complete rights to reproduce, duplicate, disclose, perform, and otherwise use all materials prepared under this Agreement. The Subrecipient agrees that any report, printed matter, or publication (written, visual, or sound, but excluding press releases, newsletters, and issue analyses) issued by the Subrecipient describing programs or projects funded in whole or in part with Federal funds shall contain the following statement: "This document was prepared under a grant from the U.S. Department of Homeland Security. Points of view or opinions expressed in this document are those of the authors and do not necessarily represent the official position or policies of the U.S. Department of Homeland Security." The Subrecipient also agrees that one copy of any such publication, report, printed matter, or publication shall be submitted to the AZDOHS to be placed on file and distributed as appropriate to other potential subrecipients or interested parties. The AZDOHS may waive the requirement for submission of any specific publication upon submission of a request providing justification from the Subrecipient. The AZDOHS and the Subrecipient recognize that research resulting from this Agreement has the potential to become public information. However, prior to the termination of this Agreement, the Subrecipient agrees that no research-based data resulting from this Agreement shall be published or otherwise distributed in any form without express written permission from the AZDOHS and possibly the U.S. Department of Homeland Security. It is also agreed that any report or printed matter completed as a part of this agreement is a work for hire and shall not be copyrighted by the Subrecipient. XXIX. CLOSED-CAPTIONING OF PUBLIC SERVICE ANNOUNCEMENTS Any television public service announcement that is produced or funded in whole or in part by the Subrecipient shall include closed captioning of the verbal content of such announcement. XXX. INDEMNIFICATION Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as "Indemnitee") 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 of any person (including death) or property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. The State of Arizona, (AZDOHS) is self-insured per A.R.S. 41-621. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 18 In addition, should Subrecipient utilize a contractor(s) and subcontractor(s), the indemnification clause between Subrecipient and contractor(s) and subcontractor(s) shall include the following: Contractor shall defend, indemnify, and hold harmless the (insert name of other governmental entity) and the State of Arizona, and any jurisdiction or agency issuing any permits for any work arising out of this Agreement, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of the contractor or any of the directors, officers, agents, or employees or subcontractors of such contractor. This indemnity includes any claim or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of such contractor to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by such contractor from and against any and all claims. It is agreed that such contractor will be responsible for primary loss investigation, defense and judgment costs where this indemnification is applicable. Additionally on all applicable insurance policies, contractor and its subcontractors shall name the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as an additional insured and also include a waiver of subrogation in favor of the State. XXXI. TERMINATION a) All parties reserve the right to terminate the Agreement in whole or in part due to the failure of the Subrecipient or AZDOHS to comply with any term or condition of the Agreement, to acquire and maintain all required insurance policies, bonds, licenses, and permits or to make satisfactory progress in performing the Agreement. The staff of either party shall provide a written thirty (30) day advance notice of the termination and the reasons for it. b) If the Subrecipient chooses to terminate the Agreement before the grant deliverables have been met then the AZDOHS reserves the right to collect all reimbursements distributed to the Subrecipient. c) The AZDOHS may, upon termination of this Agreement, procure, on terms and in the manner that it deems appropriate, materials or services to replace those under this Agreement. The Subrecipient shall be liable to the AZDOHS for any excess costs incurred by the AZDOHS in procuring materials or services in substitution for those due from the Subrecipient. XXXII. CONTINUATION OF PERFORMANCE THROUGH TERMINATION The Subrecipient shall continue to perform, in accordance with the requirements of the Agreement, up to the date of termination, as directed in the termination notice. XXXIII. PARAGRAPH HEADINGS The paragraph headings in this Agreement are for convenience of reference only and do not define, limit, enlarge, or otherwise affect the scope, construction, or interpretation of this Agreement or any of its provisions. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 19 XXXIV. COUNTERPARTS This Agreement may be executed in any number of counterparts, copies, or duplicate originals. Each such counterpart, copy, or duplicate original shall be deemed an original, and collectively they shall constitute one agreement. XXXV. AUTHORITY TO EXECUTE THIS AGREEMENT Each individual executing this Agreement on behalf of the Subrecipient represents and warrants that he or she is duly authorized to execute this Agreement. XXXVI. SPECIAL CONDITIONS a) The Subrecipient must comply with the most recent version of the Administrative Requirements, Cost Principles, and Audit requirements. b) The Subrecipient acknowledges that the DHS and the AZDOHS reserve a royalty-free, non- exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for Federal government purposes: (a) the copyright in any work developed under an award or sub-award; and (2) any rights of copyright to which a subrecipient purchases ownership with Federal support. The Subrecipient shall consult with the AZDOHS regarding the allocation of any patent rights that arise from, or are purchased with, this funding. c) The Subrecipient agrees to cooperate with any assessments, state/national evaluation efforts, or information or data collection requests, including, but not limited to, the provision of any information required for the assessment or evaluation of any activities within this agreement. d) The Subrecipient is prohibited from transferring funds between programs (e.g., State Homeland Security Program, Urban Area Security Initiative, Operation Stonegarden). 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 20 XXXVII. NOTICES Any and all notices, requests, demands, or communications by either party to this Agreement, pursuant to or in connection with this Agreement shall be in writing, be delivered in person, or shall be sent to the respective parties at the following addresses: Arizona Department of Homeland Security 1700 West Washington Street, Suite 210 Phoenix, AZ 85007 The Subrecipient shall address all programmatic and reimbursement notices relative to this Agreement to the appropriate AZDOHS staff; contact information at www.azdohs.gov. The AZDOHS shall address all notices relative to this Agreement to: Enter Title, First & Last Name Above Enter Agency Name Above Enter Street Address Above Enter City, State, ZIP Above XXXVIII. IN WITNESS WHEREOF The parties hereto agree to execute this Agreement. FOR AND BEHALF OF THE FOR AND BEHALF OF THE Arizona Department of Homeland Security Enter Agency Name Above Authorized Signature Above Gilbert M. Orrantia Director Print Name & Title Above Enter Date Above Date (Complete and mail two original documents to the Arizona Department of Homeland Security.)    Town Council Regular and Study Session F. Meeting Date:03/20/2019   Requested by: Jason Larter Submitted By:Catherine Hendrix, Police Department Department:Police Department Information SUBJECT: Resolution No. (R)19-14, authorizing and approving a subgrantee agreement between the Town of Oro Valley and the Arizona Department of Homeland Security to fund the purchase of three(3)License Plate Readers under the Operation Stonegarden program RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: Over the past several years, the Arizona Department of Homeland Security (AZDOHS) has partnered with the Town of Oro Valley Police Department (OVPD), providing funding for Operation Stonegarden to include overtime and mileage, as well as the purchase of critical equipment; and on March 1, 2019, OVPD was provided the notice awarding the funding to purchase equipment. OVPD wishes to enter into a subgrantee agreement with AZDOHS to fund the purchase of three (3) License Plate Readers (LPR’s) to support officers deployed under the Operation Stonegarden program. BACKGROUND OR DETAILED INFORMATION: The grant application was made in order to work in a regional partnership with other local law enforcement agencies and the U.S. Border Patrol Tucson Sector to reduce crime and improve the quality of life for the residents and visitors of Oro Valley. This grant will use targeted deployments of officers and canine units to impact the flow of smugglers engaged in human trafficking and illegal contraband, as well as possible terrorists who intend to cause harm or commit crimes against this nation. FISCAL IMPACT: The capacity exists in the current FY18/19 budget to accept this grant award for a total of $50,400. There is an annual fiscal impact of $3,150 ($525 per reader) that has been requested for the FY19/20 budget. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)19-14, authorizing and approving a subgrantee agreement between the Town of Oro Valley and the Arizona Department of Homeland Security to fund the purchase of three (3) License Plate Readers (LPR's) under the Operation Stonegarden program. Attachments (R)19-14 Stonegarden Equipment  Stonegarden Equipment Agreement  C:\Windows\TEMP\BCL Technologies \easyPDF 7 \@BCL@9C04AA30\@BCL@9C04AA30.doc Town of Oro Valley Attorney’s Office/ca/012512 RESOLUTION NO. (R)19-14 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING A SUBGRANTEE AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND THE ARIZONA DEPARTMENT OF HOMELAND SECURITY TO FUND EQUIPMENT UNDER THE OPERATION STONEGARDEN PROGRAM ; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, the Arizona Department of Homeland Security (AZDOHS) requires participating jurisdictions to enter into a Subgrantee Agreement to receive the funds granted under the Operation Stonegarden Program; and WHEREAS, the Town of Oro Valley’s allocation under the grant is a maximum of $50,400 which will be used to fund equipment under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection; and WHEREAS, it is in the best interest of the Town o f Oro Valley to enter into the Subgrantee Agreement (attached hereto as Exhibit “A” and incorporated herein by this reference ) in order to receive funds which will be used to fund equipment under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection. NOW THEREFORE BE IT RESOLVED by the Mayor and Town Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Subgrantee Agreement between the Town of Oro Valley, for the benefit of the Oro Valley Police Department and the Arizona Department of Homeland Security, attached hereto as Exhibit “A” and incorporated herein by this reference, to fund equipment under the Operation Stonegarden Program for deployments with the U.S. Department of Homeland Security Bureau of Customs and Border Protection is hereby authorized and approved. SECTION 2. The Mayor and 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 Subgrantee Agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 20th day of March, 2019. TOWN OF ORO VALLEY, ARIZONA Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 1 SUBRECIPIENT AGREEMENT OPERATION STONEGARDEN GRANT PROGRAM EQUIPMENT 18-AZDOHS-OPSG-___________ (Enter Subrecipient Agreement number above (e.g., 180XXX-XX) Between The Arizona Department of Homeland Security And (Enter the name of the Subrecipient Agency above) DUNS Number___________ (Enter the DUNS number above) WHEREAS, A.R.S. section 41-4254 charges the Arizona Department of Homeland Security (AZDOHS) with the responsibility of administering funds. THEREFORE, it is agreed that the AZDOHS shall provide funding to the (Enter the name of the Subrecipient Agency above) (Subrecipient) for services under the terms of this Agreement (the “Agreement”). I. PURPOSE OF AGREEMENT The purpose of this Agreement is to specify the rights and responsibilities of AZDOHS in administering the distribution of homeland security grant funds to the Subrecipient, and to specify the rights and responsibilities of the Subrecipient as the recipient of these funds. II. PERIOD OF PERFORMANCE, TERMINATION AND AMENDMENTS This Agreement shall become effective on March 1, 2019 and shall terminate on February 29, 2020. The obligations of the Subrecipient as described herein will survive termination of this agreement. III. DESCRIPTION OF SERVICES The Subrecipient shall provide the services for AZDOHS as set forth in writing in Subrecipient’s grant application titled: “OPSG Equipment” and funded at $ (as may have been modified by the award letter). (Enter funded award amount above) IV. MANNER OF FINANCING The AZDOHS shall under the U.S. Department of Homeland Security grant # EMW -2018-SS- 00004-S01 and CFDA #97.067: a) Provide up to $ to the Subrecipient for services provided under Paragraph III. (Enter funded award amount above) b) Payment made by the AZDOHS to the Subrecipient shall be on a reimbursement basis only and is conditioned upon receipt of proof of payment and applicable, accurate and complete reimbursement documents, as deemed necessary by the AZDOHS, to be submitted by the Subrecipient. A listing of acceptable documentation can be found at www.azdohs.gov. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 2 Payments will be contingent upon receipt of all reporting requirements of the Subrecipient under this Agreement. V. FISCAL RESPONSBILITY It is understood and agreed that the total amount of the funds used under this Agreement shall be used only for the project as described in the application and award documentation. Therefore, should the project not be completed, the subrecipient shall reimburse said funds directly to the AZDOHS immediately. If the project is completed at a lower cost than the original budget called for, the amount reimbursed to the subrecipient shall be for only the amount of dollars actually spent by the subrecipient in accordance with the approved application. For any funds received under this Agreement for which expenditure is disallowed by an audit exemption or otherwise by the AZDOHS, the State, or Federal government, the Subrecipient shall reimburse said funds directly to the AZDOHS immediately. VI. FINANCIAL AUDIT/PROGRAMMATIC MONITORING The Subrecipient agrees to comply with the record-keeping requirements and other requirements of A.R.S. section 35-214 and section 35-215. a) In addition, in compliance with the Federal Single Audit Act (31 U.S.C. part 7501-7507), as amended by the Single Audit Act Amendments of 1996 (P.L. 104 to 156), the Subrecipient must have a Single Audit or program specific audit conducted in accordance with 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) if the Subrecipient expends more than $750,000 from Federal awards in its previous fiscal year. If the Subrecipient has expended more than $750,000 in Federal dollars, a copy of the Subrecipient’s single audit or program specific audit report for the previous fiscal year and subsequent fiscal years that fall within the period of performance is due annually to AZDOHS within nine (9) months of the Subrecipient’s fiscal year end. b) Failure to comply with any requirements imposed as a result of an audit will suspend reimbursement by AZDOHS to the Subrecipient until the Subrecipient is in compliance with all such requirements. Additionally, the Subrecipient will not be eligible for any new awards until the Subrecipient is in compliance with all such requirements. c) Subrecipients who do not expend more than $750,000 in Federal dollars in the previous fiscal year and subsequent fiscal years that fall within the period of performance must submit to AZDOHS via audits@azdohs.gov, a statement stating they do not meet the threshold and therefore do not have to complete a single audit or program specific audit. d) Subrecipient will be monitored periodically by AZDOHS, both programmatically and financially, to ensure that the project goals, objectives, performance requirements, timelines, milestone completion, budgets, and other related program criteria are being met. Monitoring will be accomplished through a combination of office-based reviews and on-site monitoring visits. Monitoring can involve aspects of the work involved under this Agreement including but not limited to the review and analysis of financial, programmatic, equipment, performance, and administrative issues relative to each program and will identify areas where technical assistance and other support may be needed. Subrecipient shall participate in and cooperate with all such monitoring by AZDOHS, and shall provide access to all personnel, documents, and other records as may be requested from time to time by AZDOHS. Subrecipient also shall comply with all requests of AZDOHS that AZDOHS deems necessary to assure the parties’ compliance with their obligations under this Agreement. VII. APPLICABLE REGULATIONS The Subrecipient must comply with the applicable Notice of Funding Opportunity (NOFO), Office of Management and Budget Code of Federal Regulations (CFR) 2 CFR 200: Uniform Guidance. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 3 The NOFO for this program is hereby incorporated into your award agreement by reference. By accepting this award, the Subrecipient agrees that all allocation and use of funds under this grant will be in accordance with the requirements contained in the NOFO. Davis Bacon Act HSGP Program subrecipients using funds for construction projects must comply with the Davis- Bacon Act (40 U.S.C. 3141 et seq.). Subrecipients must obtain written approval from AZDOHS prior to use of any HSGP funds for construction or renovation. Subrecipients must ensure that their contractors or subcontractors for construction projects pay workers no less than the prevailing wages for laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the state in which the work is to be performed. Additional information regarding compliance with the Davis-Bacon Act, including Department of Labor (DOL) wage determinations, is available from the following website http://www.dol.gov/compliance/laws/comp-dbra.htm. Insurance Coverage The Subrecipient affirms the organization maintain insurance coverage as described in 2 CFR 200.310. The non-Federal (Subrecipient) entity must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property owned by the non-Federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award. National Incident Management System (NIMS) The Subrecipient agrees to remain in compliance with National Incident Management System (NIMS) implementation initiatives as outlined in the applicable NOFO. Environmental Planning and Historic Preservation The Subrecipient shall comply with Federal, State and Local environmental and historical preservation (EHP) regulations, laws and Executive Orders as applicable. Subrecipients proposing projects that have the potential to impact the environment, including but not limited to construction of communication towers, modification or renovation of existing buildings, structures and facilities, or new construction including replacement of facilities, must participate in the Department of Homeland Security (DHS)/Federal Emergency Management Agency (FEMA) EHP review process. The EHP review process involves the submission of a detailed project description that explains the goals and objectives of the proposed project along with supporting documentation so that DHS/FEMA may determine whether the proposed project has the potential to impact environmental resources and/or historic properties. In some cases, DHS/FEMA is also required to consult with other regulatory agencies and the public in order to complete the review process. The EHP review process must be completed before funds are released to carry out the proposed project. If ground disturbing activities occur during project implementation, the Subrecipient must ensure monitoring of ground disturbance and if any archeological resources are discovered, the Subrecipient shall immediately cease construction in that area and notify FEMA, AZDOHS and the appropriate State Historic Preservation Office. DHS/FEMA will not fund projects that are initiated without the required EHP review. Additionally, all recipients are required to comply with DHS/FEMA EHP Policy Guidance. This EHP Policy Guidance can be found in FP 108-023-1, Environmental Planning and Historic Preservation Policy Guidance. In addition to the above mentioned guidance documents, the following provisions must be adhered to: 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 4 Consultants/Trainers/Training Providers Invoices for consultants/trainers/training providers must include at a minimum: a description of services; dates of services; number of hours for services performed; rate charged for services; and, the total cost of services performed. Consultant/trainer/training provider costs must be within the prevailing rates; must be obtained under consistent treatment with the procurement policies of the Subrecipient and 2 CFR 200; and shall not exceed the maximum of $450 per day per consultant/trainer/training provider unless prior written approval is granted by the AZDOHS. This includes internal personnel hired on backfill/overtime to deliver training. In addition to the per day $450 maximum amount, the consultant/trainer/training provider may be reimbursed reasonable travel, lodging, meal and incidental expenses not to exceed the State rate. Itemized receipts are required for lodging and travel reimbursements. The Subrecipient will not be reimbursed costs other than travel, lodging, meals and incidentals on travel days for consultants/trainers/training providers. See Travel Costs below. Contractors/Subcontractors The Subrecipient may enter into written subcontract(s) for performance of certain of its functions under the Agreement in accordance with terms established in 2 CFR 200 and the applicable NOFO. The Subrecipient agrees and understands that no subcontract that the Subrecipient enters into with respect to performance under this Agreement shall in any way relieve the Subrecipient of any responsibilities for performance of its duties. The Subrecipient shall give the AZDOHS immediate notice in writing by certified mail of any action or suit filed and prompt notice of any claim made against the Subrecipient by any subcontractor or vendor which, in the opinion of the Subrecipient, may result in litigation related in any way to this Agreement. Travel Costs All grant funds expended for travel, lodging, meals and incidentals must be consistent with the subrecipient’s policies and procedures, as well as the State of Arizona Accounting Manual (SAAM). These policies must be applied uniformly to both federally financed and other activities of the agency. AZDOHS will reimburse at the most restrictive allowability and rate. At no time will the Subrecipient’s reimbursement(s) exceed the State rate established by the Arizona Department of Administration, General Accounting Office Travel Policies: https://gao.az.gov. Procurement The Subrecipient shall comply with its own procurement rules/policies and must also comply with Federal procurement rules/policies and all Arizona state procurement code provisions and rules. The Federal intent is that all Homeland Security Funds are awarded competitively. The Subrecipient shall not enter into a Noncompetitive (Sole or Single Source) Procurement Agreement, unless prior written approval is granted by the AZDOHS via the Noncompetitive Procurement Request Form. The Noncompetitive Procurement Request Form and instructions are located on the AZDOHS website: www.azdohs.gov. Training and Exercise The Subrecipient agrees that any grant funds used for training and exercise must be in compliance with the applicable NOFO. All training must be included and approved in your application and/or approved through the DEMA/AZDOHS training request process prior to execution of training contract(s). All exercises must utilize and comply with the FEMA Homeland Security Exercise and Evaluation Program (HSEEP) guidance for exercise design, development, conduct, evaluation and reporting. The Subrecipient agrees to: a) Submit an exercise summary and attendance/sign-in roster to AZDOHS with all related reimbursement requests. b) Email the After Action Report/Improvement Plan (AAR/IP) to the local County Emergency Manager, the AZDOHS Strategic Planner, and the Arizona Department of Military Affairs 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 5 (DEMA) Exercise Branch within 90 days of completion of an exercise or as prescribed by the most current HSEEP guidance. Communications Equipment All Land Mobile Radio equipment purchased with Homeland Security funds is required to comply with the following: a) P25 standards; b) SAFECOM Guidance; c) Land Mobile Radio Minimum Equipment Standards as approved by the Statewide Interoperability Executive Committee (SIEC); and d) Arizona's State Interoperable Priority Programming Guide also as approved by the SIEC. Nonsupplanting Agreement The Subrecipient shall not use funds received under this Agreement to supplant Federal, State, Tribal or Local funds or other resources that would otherwise have been made available for this program/project. The Subrecipient may be required to demonstrate and document that a reduction in non-Federal resources occurred for reasons other than the receipt of expected receipt of Federal funds. Further, if a position created by a grant is filled from within, the vacancy created by this action must be filled within thirty (30) days. If the vacancy is not filled within thirty (30) days, the Subrecipient must stop charging the grant for the new position. Upon filling the vacancy, the Subrecipient may resume charging for the grant position. E-Verify Compliance requirements for A.R.S. section 41-4401—immigration laws and E-Verify requirement. a) The Subrecipient warrants its compliance with all State and Federal immigration laws and regulations relating to its employees and to employees of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, including but not limited to A.R.S. section 23-214, Subsection A (that subsection reads: “After December 31, 2007, every employer, after hiring an employee, shall verify the employment eligibility of the employee through the E-Verify program”). b) A breach of a warranty by Subrecipient regarding compliance with immigration laws and regulations shall be deemed a material breach of this Agreement and the Subrecipient may be subject to penalties to be determined at AZDOHS’s discretion, up to and including termination of this Agreement. c) The AZDOHS retains the legal right to inspect the papers of any Subrecipient employee who works on the Agreement, and to those of any employee of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, to ensure that the Subrecipient is complying with the warranty under paragraph (a) above. Property Control Effective control and accountability must be maintained by Subrecipient for all property/equipment purchased under this Agreement. The Subrecipient must adequately safeguard all such property/equipment and must assure that it is used for authorized purposes as described in the NOFO, grant application, and Code of Federal Regulations 2 CFR 200. The Subrecipient shall exercise caution in the use, maintenance, protection and preservation of such property. a) Property/equipment shall be used by the Subrecipient in the program or project for which it was acquired as long as needed, whether or not the program or project continues to be supported by federal grant funds. Subrecipient is required to maintain and utilize equipment as outlined in 2 CFR 200.313 - Equipment. Any loss, damage, or theft shall be investigated and reported to the AZDOHS. Any equipment lost, damaged or stolen shall be replaced by 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 6 the Subrecipient at the Subrecipient’s expense and an updated Property Control Form submitted to AZDOHS. b) Nonexpendable Property/Equipment and Capital Assets: a. Nonexpendable Property/Equipment is property which has a continuing use, is not consumed in use, is of a durable nature with an expected service life of one or more years, has an acquisition cost of $5,000 (Five Thousand Dollars) or more, and does not become a fixture or lose its identity as a component of other equipment or systems. b. A Capital Asset is any personal or real property, or fixture that has an acquisition cost of $5,000 (Five Thousand Dollars) or more per unit and a useful life of more than one year. c) A Property Control Form (if applicable) shall be maintained for the entire scope of the program or project for which property was acquired through the end of its useful life and/or disposition. All Nonexpendable Property and Capital Assets must be included on the Property Control Form. The Subrecipient shall provide AZDOHS a copy of the Property Control Form with the final quarterly programmatic report. The Property Control Form can be located at www.azdohs.gov. The Subrecipient agrees to be subject to equipment monitoring and auditing by state or federal authorized representatives to verify information. d) A physical inventory of Nonexpendable Property/Equipment and Capital Assets must be taken and the results reconciled with the Property Control Form at least once every two years. a. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated and reported to AZDOHS. b. Adequate maintenance procedures must be developed to keep the property in good condition. e) When Nonexpendable Property/Equipment and/or Capital Assets are no longer in operational use by the Subrecipient, an updated Property Control Form must be submitted to AZDOHS immediately. The disposition of equipment shall be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200. If the Subrecipient is requesting disposition of Capital Assets for reasons other than theft, destruction, or loss, the Subrecipient must submit an Equipment Disposition Request Form and receive approval prior to the disposition. The Equipment Disposition Request Form can be found at www.azdohs.gov. f) Equipment Record Retention a. 2 CFR 200.333 (c): Records for real property and equipment acquired with Federal funds must be retained for three (3) years after final disposition. Allowable Costs The allowability of costs incurred under this agreement shall be determined in accordance with the general principles of allowability and standards for selected cost items as set forth in the applicable Code of Federal Regulations, authorized equipment lists, and guidance documents referenced above. a) The Subrecipient agrees that grant funds for any indirect costs that may be incurred are in accordance with 2 CFR 200 and the applicable NOFO. Indirect costs must be applied for and approved in writing by the AZDOHS prior to expenditure and reimbursement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 7 b) The Subrecipeint agrees that grant funds are not to be expended for any Management and Administrative (M&A) costs that may be incurred by the Subrecipient for administering these funds unless explicitly applied for and approved in writing by the AZDOHS and shall be in compliance with the applicable NOFO. VIII. DEBARMENT CERTIFICATION The Subrecipient agrees to comply with the Federal Debarment and Suspension regulations as outlined in the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions.” All recipients must comply with Executive Orders 12549 and 12689, and 2 CFR 200.213 which provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. IX. FUNDS MANAGEMENT The Subrecipient must maintain funds received under this Agreement in separate ledger accounts and cannot mix these funds with funds from other sources. The Subrecipient must manage funds according to applicable Federal regulations for administrative requirements, costs principles, and audits. The Subrecipient must maintain adequate business systems to comply with Federal requirements. The business systems that must be maintained are: • Financial Management • Procurement • Personnel • Property • Travel A system is adequate if it is 1) written; 2) consistently followed – it applies in all similar circumstances; and 3) consistently applied – it applies to all sources of funds. X. REPORTING REQUIREMENTS Regular reports by the Subrecipient shall include: a) Programmatic Reports The Subrecipient shall provide quarterly programmatic reports to the AZDOHS within fifteen (15) calendar days of the last day of the quarter in which services are provided. The Subrecipient shall use the form provided by the AZDOHS to submit quarterly programmatic reports. The report shall contain such information as deemed necessary by the AZDOHS. The Subrecipient shall use the Quarterly Programmatic Report form, which is posted at www.azdohs.gov. Quarterly programmatic reports shall be submitted to the AZDOHS until the entire scope of the project is completed. If the scope of the project has been fully completed and implemented, and there will be no further updates, then the quarterly programmatic report for the quarter in which the project was completed will be sufficient as the final report. The report should be marked as final and should be inclusive of all necessary and pertinent information regarding the project as deemed necessary by the AZDOHS. b) Subrecipients must provide substantial/detailed information as to the status of completion of the milestones included in the application. Failure to adequately provide complete information will result in the Quarterly Report being rejected and resubmission will be required. c) Quarterly Programmatic Reports are due: January 15 (for the period from October 1– December 31) April 15 (for the period from January 1 – March 31) July 15 (for the period from April 1 – June 30) 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 8 October 15 (for the period from July 1 – September 30) d) Final Quarterly Report: The final quarterly report is due no more than fifteen (15) calendar days after the end of the performance period. Subrecipient may submit a final quarterly report prior to the end of the performance period if the scope of the project has been fully completed and implemented. The Property Control Form is due with the final quarterly report (if applicable). e) Property Control Form – if applicable: The Subrecipient shall provide the AZDOHS a copy of the Property Control Form with the final quarterly report. a. In case of equipment disposition: The Property Control Form shall be updated and a copy provided to AZDOHS no more than forty-five (45) calendar days after equipment disposition, if applicable. The disposition of equipment must be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200.313. f) Financial Reimbursements The Subrecipient shall provide AZDOHS with requests for reimbursement as frequently as monthly but not less than quarterly. Reimbursement requests are only required when expenses have been incurred. Reimbursement requests shall be submitted with the Reimbursement Form provided by the AZDOHS staff. The Subrecipient shall submit a final reimbursement request for expenses received and invoiced prior to the end of the period of performance. The final reimbursement must be received by AZDOHS no more than forty-five (45) calendar days after the end of the period of performance. Requests for reimbursement received by AZDOHS later than forty-five (45) calendar days after the end of the period of performance will not be paid. The final reimbursement request as submitted shall be marked as final. Subrecipients will only be reimbursed for expenses that have been obligated, expended and received within the authorized Period of Performance as identified in Section II of this Agreement. Subrecipients are not authorized to obligate or expend funds prior to the start date of the Period of Performance. Any expenses obligated or expended prior to the Period of Performance start date will be deemed unallowable and will not be reimbursed. Any expenses/services that occur beyond the Period of Performance (i.e. cell phone service) will be deemed unallowable and will not be reimbursed. The AZDOHS requires that all requests for reimbursement are submitted via United States Postal Service, FedEx, UPS, etc. or in person. Reimbursement requests submitted via fax or by any electronic means will not be accepted. The AZDOHS reserves the right to request and/or require any supporting documentation and/or information it feels necessary in order to process reimbursements. Subrecipient shall promptly provide AZDOHS with all such documents and/or information. All reports shall be submitted to the contact person as described in Paragraph XXXVII, NOTICES, of this Agreement. XI. ASSIGNMENT AND DELEGATION The Subrecipient may not assign any rights hereunder without the express, prior written consent of both parties. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 9 XII. AMENDMENTS Any change in this Agreement including but not limited to the Description of Services and budget described herein, whether by modification or supplementation, must be accomplished by a formal Agreement amendment signed and approved by and between the duly authorized representative of the Subrecipient and the AZDOHS. In the event of any new legislation, laws, ordinances, or rules affecting this Agreement, the parties agree that the terms of this Agreement shall automatically incorporate the terms of such new legislation, laws, ordinances, or rules. Any such amendment shall specify: 1) an effective date; 2) any increases or decreases in the amount of the Subrecipient’s compensation, if applicable; 3) be titled as an “Amendment,” and 4) be signed by the parties identified in the preceding paragraph. The Subrecipient expressly and explicitly understands and agrees that no other method of communication, including any other document, correspondence, act, or oral communication by or from any person, shall be used or construed as an amendment or modification or supplementation to this Agreement. XIII. US DEPARTMENT OF HOMELAND SECURITY AGREEMENT ARTICLES Article A - Disposition of Equipment Acquired Under the Federal Award When original or replacement equipment acquired in conjunction with this Agreement by the Subrecipient is no longer needed for the original project or program or for other activities currently or previously supported by DHS/FEMA, the Subrecipient must request instructions from DHS/FEMA via AZDOHS by submitting an Equipment Disposition Request Form in order to make proper disposition of the equipment pursuant to 2 CFR section 200.313. Article B – Acceptance of Post Award Changes In the event FEMA determines that changes are necessary to this Agreement after it has been entered into, including changes to period of performance or terms and conditions, the Subrecipient will be notified of the changes in writing. Once notification has been made, any subsequent request for funds by Subrecipient will constitute Subrecipient’s acceptance of the changes to this Agreement and the incorporation of such changes into this Agreement. Article C - Procurement of Recovered Materials The Subrecipient hereby acknowledges and agrees that it must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and that the requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. Article D - Whistleblower Protection Act The Subrecipient hereby acknowledges and agrees that it must comply with the statutory requirements for whistleblower protections (if applicable) at 10 U.S.C section 2409, 41 U.S.C. 4712, and 10 U.S.C. section 2324, 41 U.S.C. section 4304 and 4310. Article E - Use of DHS Seal, Logo and Flags Subrecipient hereby acknowledges that it must obtain DHS’s approval prior to using the DHS seal(s), logos, crests or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags or likenesses of Coast Guard officials. Article F - USA Patriot Act of 2001 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. section 175–175c. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 10 Ar ticle G – Universal Identifier and System of Award Management (SAM) Subrecipient hereby acknowledges and agrees that is must comply with the requirements set forth in the government-wide financial assistance award term regarding the System for Award Management and Universal Identifier Requirements located at 2 C.F.R. Part 25, Appendix A. Article H - Reporting of Matters Related to Recipient Integrity and Performance If the total value of your currently active grants, cooperative agreements, and procurement contracts from all Federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this Federal award, you must comply with the requirements set forth in the government-wide Award Term and Condition for Recipient Integrity and, Performance Matters located at 2 C.F.R. Part 200 Appendix XII, the full text of which is incorporated here by reference in the terms and conditions of your award. Article I - Rehabilitation Act of 1973 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. section 794, as amended, which provides that no otherwise qualified handicapped individual in the United States will, solely by reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. These requirements pertain to the provision of benefits or services as well as to employment. Article J - Trafficking Victims Protection Act of 2000 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the government-wide award term which implements Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. section 7104). The award term is located at 2 C.F.R. Part 175, the full text of which is incorporated here by reference. Article K - Terrorist Financing The Subrecipient hereby acknowledges and agrees that it must comply with U.S. Executive Order 13224 and U.S. law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. It is the legal responsibility of the Subrecipient to ensure compliance with the Order and laws. Article L - SAFECOM The Subrecipient hereby acknowledges and agrees that recipients who receive awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications. Article M - Reporting Subawards and Executive Compensation All Subrecipients are required to comply with the requirements set forth in the government-wide Award Term on Reporting Subawards and Executive Compensation located at 2 CFR Part 170, Appendix A, the full text of which is incorporated here by reference in the terms and conditions of your award. Article N – Department and Suspension The Subrecipient hereby acknowledges and agrees that it is subject to the non-procurement debarment and suspension regulations implementing Executive Orders (E.O.) 12549 and 12689, and 2 C.F.R. Part 180. These regulations restrict Federal financial assistance awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 11 Article O - Copyright The Subrecipient hereby acknowledges and agrees that it must affix the applicable copyright notices of 17 U.S.C. sections 401 or 402 and an acknowledgement of Government sponsorship (including award number) to any work first produced under Federal financial assistance awards. Article P - Civil Rights Act of 1964 - Title VI The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. section 2000d et seq.), codified at 6 C.F.R. Part 21 and 44 C.F.R. Part 7, which provides that no person in the United States will, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Article Q - Best Practices for Collection and Use of Personally Identifiable Information (PII) The Subrecipient hereby acknowledges and agrees that if they collect PII they are required to have a publically-available privacy policy that describes standards on the usage and maintenance of PII they collect. DHS defines personally identifiable information (PII) as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. Recipients may also find the DHS Privacy Impact Assessments: Privacy Guidance and Privacy template as useful resources respectively. Article R - Americans with Disabilities Act of 1990 The Subrecipient hereby acknowledges and agrees that it shall comply with all State and Federal equal opportunity and non-discrimination requirements and conditions of employment, including but not limited to Arizona Executive Order 2009-9 and the requirements of Titles I, II, and III of the Americans with Disabilities Act, which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. sections 12101–12213). Article S - Age Discrimination Act of 1975 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Age Discrimination Act of 1975 (42 U.S.C. section 6101 et seq.), which prohibits discrimination on the basis of age in any program or activity receiving Federal financial assistance. Article T - Activities Conducted Abroad The Subrecipient hereby acknowledges and agrees that it must ensure that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained. Article U - Acknowledgement of Federal Funding from DHS The Subrecipient hereby acknowledges and agrees that it must acknowledge its use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. Article V - DHS Specific Acknowledgements and Assurances Subrecipient hereby acknowledges and agrees—and agrees to require any contractors, successors, transferees, and assignees acknowledge and agree—to comply with applicable provisions governing DHS access to records, accounts, documents, information, facilities, and staff. 1. Subrecipient hereby agrees to cooperate with any compliance review or complaint investigation conducted by DHS. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 12 2. Subrecipient hereby agrees to give DHS access to and the right to examine and copy records, accounts, and other documents and sources of information related to the grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by DHS regulations and other applicable laws or program guidance. 3. Subrecipient hereby agrees to submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. 4. Subrecipient hereby agrees to comply with all other special reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. 5. If, during the past three years, the Subrecipient has been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, the Subrecipient shall provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements to the DHS financial assistance office and the DHS Office of Civil Rights and Civil Liberties (CRCL) by email at crcl@hq.dhs.gov or by mail at U.S. Department of Homeland Security Office of Civil Rights and Civil Liberties Building 410, Mail Stop #0190 Washington, D.C. 20528. 6. In the event any court or administrative agency makes a finding of discrimination by Subrecipient (or any of its contractors or subcontractors involved in providing goods or services under this Agreement) on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against the recipient, or the recipient settles a case or matter alleging such discrimination, Subrecipient must forward a copy of the complaint and findings to the DHS financial assistance office and the CRCL office by email or mail at the addresses listed above. Subrecipient hereby acknowledges and agrees that the United States has the right to seek judicial enforcement of these obligations. Article W - Assurances, Administrative Requirements and Cost Principles, and Audit Requirements The Subrecipient hereby acknowledges and agrees that it must complete OMB Standard Form 424B Assurances – Non-Construction Programs, or OMB Standard Form 424D Assurances – Construction Programs as applicable. Certain assurances in this document may not be applicable to this Agreement, and the awarding agency may require applicants to certify additional assurances. Please contact the program awarding office if you have any questions. DHS financial assistance recipients are required to follow the applicable provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located at Title 2, Code of Federal Regulations, Part 200, and adopted by DHS at 2 C.F.R. Part 3002. Article X - Patents and Intellectual Property Rights Unless otherwise provided by law, the Subrecipient hereby acknowledges and agrees that it is subject to the Bayh-Dole Act, Pub. L. No. 96-517, as amended, and codified in 35 U.S.C. section 200 et seq., and that it is subject to the specific requirements governing the development, reporting, and disposition of rights to inventions and patents resulting from financial assistance awards are in 37 CFR Part 401 and the standard patent rights clause in 37 CFR section 401.14. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 13 Article Y – Notice of Funding Opportunity Requirements All of the instructions, guidance, limitations, and other conditions set forth in the Notice of Funding Opportunity (NOFO) for this program are incorporated here by reference in the award terms and conditions. The Subrecipient hereby acknowledges and agrees that it must comply with any such requirements set forth in the program NOFO. Article Z – Non-supplanting Requirement The Subrecipient receiving Federal financial assistance awards made under programs that prohibit supplanting by law must ensure that Federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non-Federal sources. Article AA – Nondiscrimination in Matters Pertaining to Faith-Based Organizations It is DHS policy to ensure the equal treatment of faith-based organizations in social service programs administered or supported by DHS or its component agencies, enabling those organizations to participate in providing important social services to beneficiaries. All Subrecipients must comply with the equal treatment policies and requirements contained in 6 CFR Part 19 and other applicable statutes, regulations, and guidance governing the participations of faith-based organizations in individual DHS programs. Article AB – National Environmental Policy Act All Subrecipients must comply with the requirements of the National Environmental Policy Act (NEPA) 42 U.S.C. 4321 et seq., and the Council on Environmental Quality (CEQ) Regulations (40 C.F.R. 1500-1508) for Implementing the Procedural Provisions of NEPA, which requires Subrecipients to use all practicable means within their authority, and consistent with other essential considerations of national policy, to create and maintain conditions under which people and nature can exist in productive harmony and fulfill the social, economic, and other needs of present and future generations of Americans. Article AC - Lobbying Prohibitions The Subrecipient hereby acknowledges and agrees that it must comply with 31 U.S.C. section 1352, and acknowledges and agrees that none of the funds provided under this Agreement may be used to pay any person to influence, or attempt to influence an officer or employee of any agency (whether State or Federal), a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action related to a Federal award or contract, including any extension, continuation, renewal, amendment, or modification. Article AD - Limited English Proficiency (Civil Rights Act of 1964, Title VI) The Subrecipient hereby acknowledges and agrees that it must comply with the Title VI of the Civil Rights Act of 1964 (Title VI) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP) to their programs and services. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance https://www.dhs.gov/guidance-published-help- department-supported-organizations-provide-meaningful-access-people-limited and additional resources on http://www.lep.gov. Article AE - Hotel and Motel Fire Safety Act of 1990 In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. section 2225(a), the Subrecipient hereby acknowledges and agrees that it must ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. section 2225. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 14 Article AF - Fly America Act of 1974 The Subrecipient hereby acknowledges and agrees that it must comply with the following Preference for U.S. Flag Air Carriers: Travel supported by U.S. Government funds requirement, which states preference for the use of U.S. flag air carriers (air carriers holding certificates under 49 U.S.C. section 41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. section 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B138942. Article AG - Federal Leadership on Reducing Text Messaging while Driving All Subrecipients are encouraged to adopt and enforce policies that ban text messaging while driving as described in Executive Order 13513, including conducting initiatives described in Section 3(a) of the Order when on official Government business or when performing any work for or on behalf of the federal government. Article AH - Federal Debt Status The Subrecipient hereby acknowledges and agrees that it is required to be non-delinquent in their repayment of any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129. Article AI - False Claims Act and Program Fraud Civil Remedies The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The False Claims Act (31 U.S.C. Section 3729) which prohibits the submission of false or fraudulent claims for payment to the Federal government. See also 38 U.S.C. sections 3801-3812 which details the administrative remedies for false claims and statements made. Article AJ - Energy Policy and Conservation Act The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The Energy Policy and Conservation Act (42 U.S.C. Chapter 77) which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act. Article AK - Education Amendments of 1972 (Equal Opportunity in Education Act) – Title IX The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. section 1681 et seq.), which provides that no person in the United States will, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving Federal financial assistance. These regulations are codified at 6 CFR Part 17 and 44 CFR Part 19. Article AL - Duplication of Benefits Any cost allocable to a particular Federal award, provided for in 2 CFR Part 200, Subpart E may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by Federal statutes, regulations, or terms and conditions of the Federal awards, or for other reasons. However, this prohibition would not preclude a Subrecipient form shifting costs that are allowable under two or more Federal awards in accordance with existing Federal statutes, regulations, or the terms and conditions of the Federal award. Article AM - Drug-Free Workplace Regulations The Subrecipient hereby acknowledges and agrees that it must comply drug-free workplace requirements in Subpart B (or Subpart C, if the Subrecipient is an individual) of 2 C.F.R. part 30001, which adopts the Government-wide implementation (2 C.F.R. part 182) of sec. 5152-5158 of the Drug-Free Workplace Act of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 8101). 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 15 Article AN - Civil Rights Act of 1968 The Subrecipient hereby acknowledges and agrees that it must comply with Title VIII of the Civil Rights Act of 1968, which prohibits recipients from discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision of services in connection therewith, on the basis of race, color, national origin, religion, disability, familial status, and sex (42 U.S.C. section 3601 et seq.), as implemented by the Department of Housing and Urban Development at 24 CFR Part 100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units—i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators)—be designed and constructed with certain accessible features (see 24 CFR section 100.201). XIV. OFFSHORE PERFORMANCE OF WORK PROHIBITED Due to security and identity protection concerns, all services under this Agreement shall be performed within the borders of the United States. All storage and processing of information shall be performed within the borders of the United States. This provision applies to work performed by the Subrecipient’s contractors and subcontractors at all tiers. XV. AGREEMENT RENEWAL This Agreement shall not bind nor purport to bind the AZDOHS for any contractual commitment in excess of the original Agreement period. XVI. RIGHT TO ASSURANCE If the AZDOHS in good faith has reason to believe that the Subrecipient does not intend to, or is unable to perform or continue performing under this Agreement, the AZDOHS may demand in writing that the Subrecipient give a written assurance of intent to perform. If the Subrecipient fails to provide written assurance within the number of days specified in the demand, the AZDOHS at its option may terminate this Agreement. XVII. CANCELLATION FOR CONFLICT OF INTEREST The AZDOHS may, by written notice to the Subrecipient, immediately cancel this Agreement without penalty or further obligation pursuant to A.R.S. section 38-511 if any person significantly involved in initiating, negotiating, securing, drafting, or creating the Agreement on behalf of the State or its subdivisions (unit of Local Government) is an employee or agent of any other party in any capacity or a consultant to any other party to the Agreement with respect to the subject matter of the Agreement. Such cancellation shall be effective when the parties to the Agreement receive written notice from the AZDOHS, unless the notice specifies a later time. XVIII. THIRD PARTY ANTITRUST VIOLATIONS The Subrecipient hereby assigns to the State of Arizona any claim for overcharges resulting from antitrust violations to the extent that such violations concern materials or services supplied by third parties to Subrecipient toward fulfillment of this Agreement. XIX. AVAILABILITY OF FUNDS Every payment obligation of the AZDOHS under this Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such obligations under A.R.S. section 35-154. If the funds are not allocated and available for the continuance of this Agreement, the AZDOHS may terminate this Agreement at the end of the period for which funds are available. No liability shall accrue to the AZDOHS in the event this provision is exercised, and the AZDOHS shall not be obligated or liable for any future payments or for any damages as a result of termination under this paragraph, including purchases and/or contracts entered into by the Subrecipient in the execution of this Agreement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 16 XX. FORCE MAJEURE If either party hereto is delayed or prevented from the performance of any act required in this Agreement by reason of acts of God, strikes, lockouts, labor disputes, civil disorder, or other causes without fault and beyond the control of the party obligated, performance of such act will be excused for the period of the delay. XXI. PARTIAL INVALIDITY Any term or provision of this Agreement that is hereafter declared contrary to any current or future law, order, regulation, or rule, or which is otherwise invalid, shall be deemed stricken from this Agreement without impairing the validity of the remainder of this Agreement. XXII. ARBITRATION In the event of any dispute arising under this Agreement, written notice of the dispute must be provided to the other party within thirty (30) calendar days of the events giving the rise to the dispute. Any claim made by or against the State or any of its political subdivisions (including but not limited to AZDOHS) relating to this Agreement shall be resolved through the administrative claims process. In the event that the parties would otherwise be in court and/or if A.R.S. section 12-1518 applies, the parties shall proceed in arbitration through the American Arbitration Association (“AAA”), with the arbitrator to be selected pursuant to AAA rules and the arbitration to be conducted according to the applicable AAA rules, and with the costs of arbitration (including but not limited to the arbitrator’s fees and costs) to be divided 50/50 between the parties, subject to reallocation between the parties by the arbitrator. In the event that the parties become involved in litigation with each other relating to this Agreement for any reason in any other forum, both parties agree to have any claim(s) resolved in arbitration on the terms set forth in this part XXII. Any arbitration award may be enforced through the Maricopa County Superior Court or the U.S. District Court located in Phoenix, Arizona. XXIII. GOVERNING LAW AND CONTRACT INTERPRETATION a) This Agreement shall be governed and interpreted in accordance with the laws of the State of Arizona. b) This Agreement is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms in this document. c) Either party’s failure to insist on strict performance of any term or condition of the Agreement shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object. XXIV. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and may not be changed or added to except by a writing signed by all parties hereto in conformity with Paragraph XII, AMENDMENTS. The Subrecipient agrees to comply with any such amendment within ten (10) business days of receipt of a fully executed amendment. All prior and contemporaneous agreements, representations, and understandings of the parties, oral, written, pertaining to the subject matter hereof, are hereby superseded or merged herein. XXV. LICENSING The Subrecipient, unless otherwise exempted by law, shall obtain and maintain all licenses, permits, and authority necessary to perform those acts it is obligated to perform under this Agreement. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 17 XXVI. SECTARIAN REQUESTS Funds disbursed pursuant to this Agreement may not be expended for any sectarian purpose or activity, including sectarian worship or instruction in violation of the United States or Arizona Constitutions. XXVII. ADVERTISING AND PROMOTION OF AGREEMENT The Subrecipient shall not advertise or publish information for commercial benefit concerning this Agreement without the written approval of the AZDOHS. XXVIII. OWNERSHIP OF INFORMATION, PRINTED AND PUBLISHED MATERIAL The AZDOHS reserves the right to review and approve any publications funded or partially funded through this Agreement. All publications funded or partially funded through this Agreement shall recognize the AZDOHS and the U.S. Department of Homeland Security. The U.S. Department of Homeland Security and the AZDOHS shall have full and complete rights to reproduce, duplicate, disclose, perform, and otherwise use all materials prepared under this Agreement. The Subrecipient agrees that any report, printed matter, or publication (written, visual, or sound, but excluding press releases, newsletters, and issue analyses) issued by the Subrecipient describing programs or projects funded in whole or in part with Federal funds shall contain the following statement: "This document was prepared under a grant from the U.S. Department of Homeland Security. Points of view or opinions expressed in this document are those of the authors and do not necessarily represent the official position or policies of the U.S. Department of Homeland Security." The Subrecipient also agrees that one copy of any such publication, report, printed matter, or publication shall be submitted to the AZDOHS to be placed on file and distributed as appropriate to other potential subrecipients or interested parties. The AZDOHS may waive the requirement for submission of any specific publication upon submission of a request providing justification from the Subrecipient. The AZDOHS and the Subrecipient recognize that research resulting from this Agreement has the potential to become public information. However, prior to the termination of this Agreement, the Subrecipient agrees that no research-based data resulting from this Agreement shall be published or otherwise distributed in any form without express written permission from the AZDOHS and possibly the U.S. Department of Homeland Security. It is also agreed that any report or printed matter completed as a part of this agreement is a work for hire and shall not be copyrighted by the Subrecipient. XXIX. CLOSED-CAPTIONING OF PUBLIC SERVICE ANNOUNCEMENTS Any television public service announcement that is produced or funded in whole or in part by the Subrecipient shall include closed captioning of the verbal content of such announcement. XXX. INDEMNIFICATION Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as "Indemnitee") 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 of any person (including death) or property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. The State of Arizona, (AZDOHS) is self-insured per A.R.S. 41-621. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 18 In addition, should Subrecipient utilize a contractor(s) and subcontractor(s), the indemnification clause between Subrecipient and contractor(s) and subcontractor(s) shall include the following: Contractor shall defend, indemnify, and hold harmless the (insert name of other governmental entity) and the State of Arizona, and any jurisdiction or agency issuing any permits for any work arising out of this Agreement, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of the contractor or any of the directors, officers, agents, or employees or subcontractors of such contractor. This indemnity includes any claim or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of such contractor to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by such contractor from and against any and all claims. It is agreed that such contractor will be responsible for primary loss investigation, defense and judgment costs where this indemnification is applicable. Additionally on all applicable insurance policies, contractor and its subcontractors shall name the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as an additional insured and also include a waiver of subrogation in favor of the State. XXXI. TERMINATION a) All parties reserve the right to terminate the Agreement in whole or in part due to the failure of the Subrecipient or AZDOHS to comply with any term or condition of the Agreement, to acquire and maintain all required insurance policies, bonds, licenses, and permits or to make satisfactory progress in performing the Agreement. The staff of either party shall provide a written thirty (30) day advance notice of the termination and the reasons for it. b) If the Subrecipient chooses to terminate the Agreement before the grant deliverables have been met then the AZDOHS reserves the right to collect all reimbursements distributed to the Subrecipient. c) The AZDOHS may, upon termination of this Agreement, procure, on terms and in the manner that it deems appropriate, materials or services to replace those under this Agreement. The Subrecipient shall be liable to the AZDOHS for any excess costs incurred by the AZDOHS in procuring materials or services in substitution for those due from the Subrecipient. XXXII. CONTINUATION OF PERFORMANCE THROUGH TERMINATION The Subrecipient shall continue to perform, in accordance with the requirements of the Agreement, up to the date of termination, as directed in the termination notice. XXXIII. PARAGRAPH HEADINGS The paragraph headings in this Agreement are for convenience of reference only and do not define, limit, enlarge, or otherwise affect the scope, construction, or interpretation of this Agreement or any of its provisions. 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 19 XXXIV. COUNTERPARTS This Agreement may be executed in any number of counterparts, copies, or duplicate originals. Each such counterpart, copy, or duplicate original shall be deemed an original, and collectively they shall constitute one agreement. XXXV. AUTHORITY TO EXECUTE THIS AGREEMENT Each individual executing this Agreement on behalf of the Subrecipient represents and warrants that he or she is duly authorized to execute this Agreement. XXXVI. SPECIAL CONDITIONS a) The Subrecipient must comply with the most recent version of the Administrative Requirements, Cost Principles, and Audit requirements. b) The Subrecipient acknowledges that the DHS and the AZDOHS reserve a royalty-free, non- exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for Federal government purposes: (a) the copyright in any work developed under an award or sub-award; and (2) any rights of copyright to which a subrecipient purchases ownership with Federal support. The Subrecipient shall consult with the AZDOHS regarding the allocation of any patent rights that arise from, or are purchased with, this funding. c) The Subrecipient agrees to cooperate with any assessments, state/national evaluation efforts, or information or data collection requests, including, but not limited to, the provision of any information required for the assessment or evaluation of any activities within this agreement. d) The Subrecipient is prohibited from transferring funds between programs (e.g., State Homeland Security Program, Urban Area Security Initiative, Operation Stonegarden). 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 20 NOTICES Any and all notices, requests, demands, or communications by either party to this Agreement, pursuant to or in connection with this Agreement shall be in writing, be delivered in person, or shall be sent to the respective parties at the following addresses: Arizona Department of Homeland Security 1700 West Washington Street, Suite 210 Phoenix, AZ 85007 The Subrecipient shall address all programmatic and reimbursement notices relative to this Agreement to the appropriate AZDOHS staff; contact information at www.azdohs.gov. The AZDOHS shall address all notices relative to this Agreement to: Enter Title, First & Last Name Above Enter Agency Name Above Enter Street Address Above Enter City, State, ZIP Above XXXVIII. IN WITNESS WHEREOF The parties hereto agree to execute this Agreement. FOR AND BEHALF OF THE FOR AND BEHALF OF THE Arizona Department of Homeland Security Enter Agency Name Above Authorized Signature Above Gilbert M. Orrantia Director Print Name & Title Above Enter Date Above Date (Complete and mail two original documents to the Arizona Department of Homeland Security.)    Town Council Regular and Study Session 1. Meeting Date:03/20/2019   Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: RESOLUTION NO. (R)19-15, DISCUSSION AND POSSIBLE ACTION REGARDING THE FY 2019/20 - FY 2020/21 TOWN COUNCIL STRATEGIC LEADERSHIP PLAN RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: At the Town Council Study Session on February 27, 2019, Council provided feedback to staff regarding the draft Strategic Leadership Plan to ensure the objectives outlined were aligned with Council's discussion during the previous two-day retreat. Feedback received has been captured in the final Strategic Leadership Plan (attached) for consideration and adoption tonight. BACKGROUND OR DETAILED INFORMATION: On January 11 and 12, 2019, Town Council held a Study Session with Facilitator Patrick Ibarra of the Mejorando Group and Town staff to begin planning for the FY 2019/20 - FY 2020/21 Strategic Leadership Plan. In preparation for the Council Study Session, Mr. Ibarra met with Councilmembers one-on-one to hear their priorities, conducted a community focus group meeting with executive-level representatives, and conducted a public community meeting. During the Study Session, Town Council identified focus areas and priorities for the next two fiscal years which were captured and incorporated into the draft Strategic Leadership Plan. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve/deny) Resolution (R)19-15, adopting and approving the FY 2019/20 - FY 2020/21 Town Council Strategic Leadership Plan. Attachments (R)19-15 Strategic Plan Resolution  Council Strategic Leadership Plan  RESOLUTION NO. (R)19-15 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, ADOPTING THE TOWN COUNCIL STRATEGIC LEADERSHIP PLAN 2019/2021; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHOR IZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, the current Town of Oro Valley Strategic Plan was approved and published in 2017; and WHEREAS, the Town wishes to revise the current Strategic Plan to better reflect the current strategic posture of the Town; and WHEREAS, the Town Council Strategic Leadership Plan 2019/2021 (the “Plan”), attached hereto as Exhibit “A” and incorporated herein by this reference, includes input from the Mayor and Council and all Town departments; and WHEREAS, the Plan’s focus areas are: Economic Vitality, Culture and Recreation, Public Safety, Roads, Water, Town Assets, Land Use, Effective and Efficient Government and Town Finances; and WHEREAS, the Mayor and Council believe that the adoption of the Plan is in the best interest of the Town and will help promote the health, safety and welfare of the Town. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1. That certain document entitled “Town Council Strategic Leadership Plan 2019/2021”, attached hereto as Exhibit “A,” is hereby adopted. SECTION 2. If any section, subsection, sentence, clause, phrase, or portion of this resolution of any part of the Town Council Strategic Leadership Plan 2019/2021 adopted herein is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions there of. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND AD OPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 20th day of March, 2019. 2 TOWN OF ORO VALLEY _____________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: 3 EXHIBIT “A” FY19/20 – FY20/21 ORO VALLEY TOWN COUNCIL STRATEGIC LEADERSHIP PLAN ACKNOWLEDGMENTS Mayor Joe Winfield Vice Mayor Melanie Barrett Councilmember Joyce Jones -Ivey Councilmember Josh Nicolson Councilmember Rhonda Piña Councilmember Bill Rodman Councilmember Steve Solomon Town Manager Mary Jacobs 2 STRATEGIC FOCUS AREA S  Economic Vitality  Culture and Recreation  Public Safety  Roads, Water and Town Assets  Land Use  Effective and Efficient Government  Town Finances ORO VALLEY’S VISION FOR THE FUTURE YOUR VOICE, OUR FUTURE Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro Valley will keep its friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town’s lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views. 3 TOWN COUNCIL FOCUS AREA 1: ECONOMIC VITALITY Goal 1A: Implement strategies to improve opportunities to attract, grow and retain primary employers and expand local job opportunities. OBJECTIVES  Develop and present a business incentive program to Town Council.  Analyze and develop strategies to expand available properties for primary employment.  Support local and regional collaborative initiatives that help attract and grow start-up businesses in key target sectors within Oro Valley, including an incubator/accelerator at Innovation Park.  Explore the feasibility of a town-owned fiber optic network to minimize reliance on third party carriers and increase technology capabilities at Town facilities.  Identify ways in which the Town can support collaborative efforts between educational institutions, business, government and non-profit organizations to continue improving student knowledge, skills and abilities in preparation for workforce entry. Goal 1B: Implement strategies to attract retail and restaurant investment and expansion in primary commercial centers within the community. OBJECTIVES  Conduct an external retail market assessment by a qualified firm to provide targeted data designed to assist the town in attracting and retaining retail.  Work with the owner of the Oro Valley Marketplace to develop a multi-faceted, mutually agreeable approach to attract and retain new investment and an expanded customer base to that center.  Analyze current and projected vacancies at major commercial centers and develop policy options that could facilitate reinvestment and long-term sustainability.  Develop and begin implementation of a robust economic development marketing strategy that provides targeted and expected information for business and retail prospects.  Partner with the Greater Oro Valley Chamber of Commerce to convene an annual business summit focused on increasing the Town and community’s understanding of the challenges and opportunities associated with a thriving retail and restaurant market. Goal 1C: Develop a comprehensive annexation blueprint to guide the Town’s strategic growth and economic expansion. OBJECTIVES  Analyze unincorporated areas within the Town’s growth boundary and develop a written policy that contains a set of criteria, priorities and strategies with which to proactively consider annexation opportunities that are beneficial to the community. 4 Goal 1D: Improve Town responsiveness to commercial investments that better correlate to the speed of business. OBJECTIVES  Complete transition to electronic plan submittal and review.  Benchmark similar planning and permitting processes and procedures in highly successful local governments, prioritize improvements and implement improvement plan. Goal 1E: Identify opportunities to increase sustainable tourism investment in the community. OBJECTIVES  Analyze current tourism investment, trends and economic impacts within the community and region and identify visitor categories that could be more effectively attracted.  Develop and implement a more robust visitor attraction strategy that builds upon the Town’s strengths, amenities and visitor data.  Evaluate the estimated economic impact (EEI) of current special events in Oro Valley and develop a strategy to support, grow and attract those with positive EEI. TOWN COUNCIL FOCUS AREA 2: CULTURE AND RECREATION Goal 2A: Invest in and maintain a high quality parks, recreation and trail system that is accessible, comprehensive, connected and serves the community’s needs. OBJECTIVES  Conduct a comprehensive, community-wide needs assessment for parks and recreation amenities and programs, including such things as sports fields and courts, play structures, water/splash features and community space, to help inform future investment decisions and plans.  Implement the Town Council’s decision regarding the Town’s golf course property and Community Center.  Install a new playground and related amenities (e.g. shade structure, parking lot and lighting) at Naranja Park.  Explore opportunities to partner with the Amphitheater Unified School District to utilize school amenities within the Town limits and expand the intergovernmental agreement as appropriate.  Using the needs assessment information, develop a comprehensive, Town-wide Parks and Recreation Master Plan with input from the community, including individual plans for the Community Center, James D. Kriegh Park, Riverfront Park and Naranja Park.  Review the Steam Pump Master Plan and Needs Assessment and reprioritize capital investments and programming opportunities consistent with community and Town Council input. 5 TOWN COUNCIL FOCUS AREA 3: PUBLIC SAFETY Goal 3A: Support strategies that result in a safe community with low crime, safe neighborhoods and positive relationships between law enforcement and community members. OBJECTIVES  Implement officer training in Interdiction for the Protection of Children, with a focus on applying to the Oracle Road corridor to protect endangered children.  Provide Rescue Task Force (RTF) training to partnering fire departments and continue regional approach to Active Shooter preparedness.  Explore the expansion of the Police Department’s body camera program to all officers.  Explore the feasibility of establishing a “Drug Court” within the Town’s Municipal Court to provide opportunities for individuals convicted of certain crimes to address substance abuse issues.  Deploy the High Visibility Enforcement (HiVE) in high collision areas to address the increasing volume of traffic and associated issues in and around Oro Valley roadways.  Adopt new businesses as they open to create positive relationships and educate them on safety trends locally and regionally.  Analyze Police call, response and service trends/data and develop a responsible short and long- term plan to ensure the community continues to receive high quality public safety services. TOWN COUNCIL FOCUS AREA 4: ROADS, WATER AND TOWN ASSETS 4A: Support investments and strategies that maintain and enhance a quality, integrated and connected transportation network for the community. OBJECTIVES  Maintain an Overall Condition Index (OCI) rating of 76 for all paved streets.  Develop a comprehensive, organization-wide facility space plan concept that maximizes efficiencies and reflects the best use of Town properties for the future.  Integrate the capital asset replacement and maintenance plan into the Town’s capital improvement program.  Explore the feasibility of partnering with the Arizona Department of Transportation to improve Oracle Road pavement conditions and traffic signal coordination.  Partner with the Regional Transportation Authority (RTA) in evaluating long-term transportation needs for future RTA continuation, ensuring Oro Valley’s needs are fairly represented.  Identify ways in which the Town can further reduce its consumption of energy and water. 6 4B: Provide a high quality, safe and reliable water supply that meets the long-term needs of the community while considering the natural environment. OBJECTIVES  Reduce groundwater pumping to further preserve groundwater supplies by maximizing Central Arizona Project (CAP) water deliveries with existing infrastructure.  Expand education and outreach programs to communicate with residents and businesses about incorporating effective water conservation strategies at home and at work.  Align the Town’s water code with regional and state drought contingency plans and other best management practices and present to the Town Council for adoption. TOWN COUNCIL FOCUS AREA 5: LAND USE 5A: Ensure quality development with integrated architecture and natural open space while maintaining and enhancing the character of the community. OBJECTIVES  Review and evaluate the effectiveness of the Environmentally Sensitive Land Ordinance (ESLO) against the goals in which it was originally established, identify any unintended consequences, and recommend changes to the Planning and Zoning Commission and Town Council.  Review and recommend to the Planning and Zoning Commission and Town Council updates of Town Codes in the following key areas: signs in the public right-of-way; residential design standards; noise and odor abatement; and the Economic Expansion Zone (EEZ).  Update the Drainage Criteria Manual in the Town’s Stormwater Code and Floodplain Ordinance to incentivize commercial property maintenance of drainage facilities and minimize pollutant runoff. TOWN COUNCIL FOCUS AREA 6: EFFECTIVE & EFFICIENT GOVERNMENT Goal 6A: Strengthen community engagement and citizen outreach. OBJECTIVES  Develop and implement a strategy to enhance Town Council interaction with residents.  Design and begin implementation of a multi-faceted strategy to more effectively seek citizen input, especially underrepresented segments of the community.  Effectively maximize the use of communication tools such as social media, the town website and other marketing avenues to keep residents informed of Town services, programs and events. 7  Develop and implement a community outreach strategy for Census 2020 to ensure maximum resident participation.  Work with the Town Council to develop and implement strategies to enhance Council engagement with and utilization of Town Boards and Commissions.  Explore options for creating effective community input opportunities to help recommend programs and investments that meet the needs of different demographic groups in the community.  Increase resident understanding of the Town’s financial structure, including revenue sources, operational costs and programs, facilities, and capital investments. Goal 6B: Enable greater transparency and more efficient community access to town information and performance. OBJECTIVES  Leverage technology to broaden electronic access to information and data on town finances and contracts.  Develop and implement a town-wide performance management dashboard system to keep the community informed of progress on key strategic objectives and other major performance goals. Goal 6C: Identify internal efficiency opportunities for continuous improvement to effect a high performing organization and culture. OBJECTIVES  Expand employee training and use of process improvement tools through the Town’s internal OV Peak Performance initiative. Goal 6D: Recruit and retain talented employees to effectively carry out the Town’s mission. OBJECTIVES  Benchmark workforce policies and practices and recommend and implement sustainable changes to the Town’s Personnel Policies and internal procedures as appropriate.  Develop a robust on-going training program that supports delivery of quality services, strengthens employee engagement and builds leadership skills.  Update and implement an effective employee onboarding program that builds employee knowledge of and connection with Town practices and supports a positive organizational culture. 8 TOWN COUNCIL FOCUS AREA 7: TOWN FINANCES Goal 7A: Ensure the Town’s financial future remains stable. OBJECTIVES  Align capital investments with the Town Council’s Strategic Leadership Plan and financial policies.  Explore opportunities to broaden revenue diversity to improve the Town’s long-term financial stability.  Adopt and implement a long-term strategy to adequately fund the Town’s Public Safety Pension Retirement System (PSPRS) liability.  Continue to align the annual budget and associated work plans with conservatively forecasted revenues.    Town Council Regular and Study Session 1. Meeting Date:03/20/2019   Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: PRESENTATION AND DISCUSSION REGARDING THE PROPOSED COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) EXECUTIVE SUMMARY: The purpose of the Community Economic Development Strategy is to provide an implementation framework to support the community's goals outlined in the Your Voice, Our Future General Plan as they pertain to economic development. The Comprehensive Economic Development Strategy (CEDS) Game Plan (Attachment 1) identifies issues, barriers, and opportunities that translate into specific strategies and tactics the Town can undertake in order to achieve these goals.  The Your Voice, Our Future General Plan has set the foundation to guide and direct the priorities of the Town and the outcomes envisioned for the community. Specifically, the community set clear policies related to economic development and economic sustainability. The CEDS game plan is the result of an in-depth analysis of the Town's economic strengths and weaknesses, regional economic trends and related economic information. The CEDS is designed to provide a five-year framework to implement the policies identified by the community. The plan will help ensure that the community remains focused on advancing the economic prosperity for all who live and work in the community, and will be evaluated every year over the five-year period for needed course corrections.  This report is for informational purposes only.   FISCAL IMPACT: N/A Attachments CEDS Strategy 2018 - 2023  Comprehensive Economic Development Strategy 2018 -2023 TOWN OF ORO VALLEY TABLE OF CONTENTS Introduction A. Economic Development and the Town’s General Plan (Page 1) B. What is Economic Development? (Page 1) C. Creating a Comprehensive Economic Development Strategy (CEDS) (Page 2) Economic Development Situation Analysis and Overview A. Overview (Page 3) B. Thinking about the Future (Page 3) C. Key Assets and Issues (Page 4) Five Year Strategic Actions A. Generate High Quality Primary Employer Prospects (Page 6) B. Maximize Opportunities to Attract Business in “Start-up Economy” (Page 7) C. Develop an Incentive Program (Page 8) D. Retain and Attract Retail (Page 8) E. Develop Robust and Economic Development Marketing Strategy (Page 9) F. Attract, Develop and Engage Talent (Page 10) G. Review and Appropriately Modify Town Codes (Page 11) H. Implement Procedures to Improve Efficiency (Page 12) I. Develop Objective Evaluation Criterion (Page 13) J. Identify Opportunities to Increase Tourism (Page 13) K. Develop Strategies to Address Physical/Infrastructure Deficiencies (Page 14) Next Steps (Page 16) Appendix A – Summary of Interviewees CEDS 2018-2023 Page 1 INTRODUCTION ECONOMIC DEVELOPMENT AND THE TOWN’S GENERAL PLAN When the residents of Oro Valley, Arizona were brought together to create the 2016 Your Voice, Our Future General Plan, they overwhelmingly envisioned the need for long-term financial sustainability. They envisioned a diverse and dynamic economy that would support a wide-range of services such as shopping, housing, high quality parks and recreational amenities, arts and culture and exceptional city services. Today, the community enjoys high quality infrastructure, including streets, public utilities and exceptional fire and police protection. The Your Voice, Our Future General Plan has set the foundation to guide and direct the priorities of their local government and the outcomes they envision for the community. Specifically, the community set some clear policies related to economic development and economic sustainability:  Develop a diversified and robust economic base to support long-term economic stability.  Establish programs, strategies, investments and financial incentives that advance the Town’s economic prosperity.  Create a targeted and coordinated marketing campaign targeted to primary employers.  Promote Oro Valley as an ideal destination for economic activity, tourism, shopping, cultural attractions, research and development.  Support the Oro Valley workforce and residents through education and training programs and needed services and amenities.  Support annexations that are economically beneficial to the Town while also considering the impacts to residents and the social, aesthetic and environmental quality of the Town.  Maintain financial stability for Town operations, programs and services. The purpose of this report is to provide an implementation framework to support the community’s goals, identifying issues, barriers, and opportunities that translate into specific tactics the Town can undertake in order to achieve the vision outlined in the Your Voice, Our Future plan as related to economic development. This document is being referred to as the Comprehensive Economic Development Strategy (CEDS) Game Plan. WHAT IS ECONOMIC DEVELOPMENT? Economic development teams work to attract, expand and retain primary and service related employers and jobs in the community. Securing the community’s financial health is accomplished by expanding and diversifying the community’s tax base and is typically measured through tax revenue to the state and local governments. CEDS 2018-2023 Page 2 Economic development definitions have evolved to describe an entire process of developing economic, social and political environments in which suitable, balanced growth over a period of years may be realized. The International Economic Development Council (IEDC) recently described economic development as the people and the profession being involved in building robust, resilient and inclusive economies. Community development, on the other hand, focuses on making the community a better place in which to live and transact business. Issues such as housing diversification, continuing education, workforce development and transportation development are a continuing necessity and are closely tied to successful economic development. Some of those challenges and opportunities are also addressed in this CEDS Game Plan. In order to achieve the economic policies identified in the Your Voice, Our Future General Plan, the town needs more specific strategies and tactics to clearly convey the Town’s intentions and set forth actionable steps that result in proactive and positive outcomes consistent with the community’s expectations. This report is designed to provide a five-year framework for such a vision. Oro Valley must become more engaged in the global marketplace in order to retain its place in the future of the region. CREATING A COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY (CEDS) The Town of Oro Valley CEDS Game Plan is the result of an in-depth analysis of Oro Valley’s economic strengths and weaknesses, regional economic trends and related economic information. An important component of the report is the input of over ninety (90) interviews with key leaders, executives and other officials representing business and industry, education and workforce, government and strategic economic development allies. A list of the categories of individuals who participated in the confidential interview process can be found in Appendix A. Extensive research on the community’s economic bases and service sector employers was conducted, with hundreds of employer targets vetted. The North American Industry Classification System (NAICS) was evaluated to enhance precision primary employer targeting relative to linking to national standards. This will enable Oro Valley to accurately classify and direct business development opportunities within the local community and link those to the U.S. Business Economy. The CEDS Game Plan puts into play active strategic alliances with both public and private sector organizations. The game plan connects prospective employers to prospective employees. It identifies specific strategies and tactics to connect producers with suppliers and service providers. This game plan will be used to stimulate the interest of prospective investors and to help the Town’s professional team measure and manage the complex processes inherent in community and economic development. The Town of Oro Valley has a robust community, a stable revenue base, strong bond-rating and a Council-approved financial policy that has collectively led to and supports fiscal sustainability. To ensure that is sustained and enhanced, the Town must also have a strong game plan that continuously scores wins that enable economic and tax base expansion. CEDS 2018-2023 Page 3 ECONOMIC DEVELOPMENT SITUATION ANALYSIS OVERVIEW The Town’s long-term financial stability as a community needs a strong and diversified economy. The best way to shape the future economy is to help create it. Not only for current residents, but also for future children, grandchildren and generations to follow. Well planned economic development can positively impact the direction of a local government and its economy. For Oro Valley, the extensive research conducted in preparing this Game Plan have highlighted some areas in which there are some perceptions, past practices, and potential unintended consequences that will require attention in the short term in order to build momentum for expanding economic development opportunities. Many of the 90+ stakeholders have noted specifically that a lack of attention to economic development will almost certainly negatively impact the future of the Oro Valley Marketplace, the Your Voice, Our Future goals tied to a complete community vision and the planned bio incubator in Innovation Park, among other things. The seating of a newly elected Town Council majority has had an unintended consequence of causing uncertainty in the real estate, business attraction/expansion and business development realm. It is the Town Council’s policy direction that will ultimately determine the community and economic development future for Oro Valley. Staff implementation of this Game Plan can support a Town Council vision to set a positive economic development direction for the community, significantly reducing that uncertainty and helping to communicate to current and future business owners that the economic health of the Oro Valley community remains a priority. Since business owners do not easily accept risk and uncertainty, setting a solid economic development vision is essential to mitigate negative perceptions. THINKING ABOUT THE FUTURE In order to develop a sustainable strategy, economic development professionals recognize that taking time to identify emerging trends, potential opportunities and threats is crucial. The Economic Development Research Partners (EDRP) group recently authored a report entitled “Future Ready – Preparing for Tomorrow’s Economy”, describing likely future changes in the economic development ecosystem nationally, along with targeted approaches that organizations can use to make their communities “future ready.” Some of the more pronounced and needed practices within our local economic development programs should address a myriad of issues, ranging from global competitiveness to sustainability. Take Ventana Roche, part of an international business organization. Within any multi-state or multi-national organization there is always an internal competition for resources, including capital and talent. So whether the Town addresses local micro or global macro challenges, the need for sustainability, innovation, and economic recovery all potentially weave into the Town's CEDS Game Plan. The Town also continues to focus on place making, talent attraction and engagement. Oro Valley’s ability to compete for and win great projects is largely dependent on the Town’s ability to adapt, innovate and appropriately evolve as a community. CEDS 2018-2023 Page 4 In addition to the independent assessment conducted for this report, the findings and recommendations also incorporate this “future ready” framework to the extent appropriate for Oro Valley. The programs, strategies and deployment tactics outlined in this report are focused on advancing the community’s economic prosperity while also providing intergenerational equity to all who live in Oro Valley. KEY ASSETS & ISSUES An important first step in determining the future strategic direction for economic development in the Town of Oro Valley is to assess the Town and organization’s key issues. By honestly evaluating these areas, trends and issues are easily identified and can be addressed or minimized. The following are some of the key assets and issues identified by the 90+ interviewees in this process, as well as the independent evaluation by the Community and Economic Development Director. Talent and Fiscal Health  Strong fiscal stability of the Town government despite lack of local property tax.  Beautiful community setting and year round climate.  Engaged community members who deeply care about the future of Oro Valley.  Location in southern Arizona which continues to attract innovative new employers.  Durability and sustainability of community despite economic downturns.  Thorough vision articulated in the Town’s voter-ratified General Plan.  High per capita and household income.  Highly educated/professional people live in the community.  Excellent talent pool. Readily available to new and expanding primary employers.  Vibrant entrepreneur community within the region and state of Arizona.  Three local Venture Capital growth funds; $450 million available in Arizona. Infrastructure/Services  Superior community infrastructure (roads, water, waste water, recreation) and others.  Excellent health care availability and strong wellness focus.  Outstanding quality of life inclusive of strong safety and abundant outdoor recreation.  Environmental stewardship, fitness, education, innovation, public safety.  Safe neighborhoods, smooth roads, quality parks and other community assets.  Highly rated education options available to area residents, from primary to post graduate; education contributes to strong and sustainable workforce. Business Development  Need for economic base diversification. Growing competition for talent and projects.  Perceived poor business climate and growing uncertainty, Town perceived as not “business friendly.”  Only community in the region without an incentive policy/program for business attraction, putting the town at a significant competitive disadvantage.  Oro Valley Marketplace: Density at/near site not supporting retail. Underperforming tenants relative to peers in regional, state and national marketplace. CEDS 2018-2023 Page 5  Poor/absent/outdated signage and sign code impacting Oro Valley Marketplace and other key retail centers, making it difficult to draw traffic in from Oracle, Tangerine, La Cañada, etc.  No defined downtown. Conflicting opportunities to “save” the Oro Valley Marketplace versus trying to induce establishment/enhancement of a separate ‘place making’ retail attraction area.  Misplaced focus on heavy planning over efficiently- executed primary employer development.  Lack of shared economic development vision, translating into lack of coordinated marketing and sales efforts.  Lack of competitive toolkit.  Excessive ordinances, e.g. odor abatement, landscaping, open space, drainage, sign codes, 1% public art, rezoning.  Lack of a predictable process.  Rigorous review process of town codes and ESLO often not clear and consistent in application and interpretation.  Outdated zoning codes and building codes across the board. Residents/Housing/Transportation  Cyclical nature of community residents results in wintertime residents pumping the local economy, bringing correspondent capital flight in the summer.  Town is complaint-oriented -- loudest voices get unequal attention.  Lack of some key community assets and ‘cool vibe’ to attract millennial workers.  Inadequate diversity of housing types. High density confused with “lower class.”  Lack of executive level furnished housing near tech parks.  Lack of local employment opportunities (both primary and secondary) for primary wage earner and trailing spouse.  Majority of adult residents drive out of town to earn a living.  Lack of affordable workforce housing and congruent transportation to and from major job sites.  Bus system is inefficient to non-existent to/from work sites.  Poor access to I-10 and Tucson International Airport.  Comparative higher costs of living and housing options.  Lack of affordable childcare. Available Sites and Buildings  Lack of shovel ready/permit ready sites as well as spec buildings.  High cost of very limited tech park land and perceived lack of political will to add more.  Lack of fillable business incubator/accelerator while surrounding communities continue to offer these options.  Lack of Oro Valley economic development presence on regional, state, national and international websites.  Cost/availability of real estate, utilities and dark fiber.  Missed annexation opportunities during a time that the town is approaching ‘build out.’  Reliability issues with power, internet and telephone connectivity. CEDS 2018-2023 Page 6 FIVE-YEAR STRATEGIC ACTIONS As a result of the economic analysis, input from interviewees, and evaluation of the policies and goals outlined in the Your Voice, Our Future General Plan, the following actions and initial tactics are proposed to move the community’s economic vision to a reality. These actions cover a five-year period and the CED Director and his staff will take the lead in working them into annual work plans. Generate high quality primary employer prospects and convert them into active prospects for Oro Valley. Proactively seeking and working potential employer prospects is a crucial foundation to meeting the goals outlined in this plan. While leads are sometimes forwarded from regional or state partners, it is the grassroots approach working with other businesses, Town leaders, and engaging with regional partners that will prove most fruitful in the long term in attracting primary employers that provide base jobs paying significantly above the average industry wages in Pima County. To that end, the following tactics will be employed:  Develop a visionary industry segment cluster approach for attracting and expanding new primary employer locations and new primary employer job opportunities to the Town of Oro Valley.  Develop and maintain an annual minimum of seventy active primary employer prospects in the Town’s pipeline and close at least 5% of those (as an annual average) during the next ten years.  Establish as a primary goal attraction/expansion of a minimum of 20-30 primary employers into Oro Valley during the next ten years, with a corresponding addition of 3,000-4,500 new primary job opportunities to the community.  Recruit, train and mobilize collaborative, internal and external project teams to proactively develop and guide new primary employment leads showing promise to the Town of Oro Valley.  Create collaborative alliances with local business, industry, government, education and workforce leaders to provide periodic updates that link targeted jobs with targeted industries.  Forge development alliances with local producers, suppliers and service providers who will create relationships which will benefit all parties. CEDS 2018-2023 Page 7 Maximize opportunities to attract businesses within the ‘Start-up Economy.’ All across the country, entrepreneurs are founding and building new companies that use technology in innovative ways. This startup ecosystem provides a rich environment in which the Town of Oro Valley can potentially compete. As a target sector, start-up businesses have some different needs and are attracted to different things. While Oro Valley may not be a good fit for all start-ups, there are opportunities that can be pursued as part of the Town’s economic development strategy. The following tactics will support such an effort:  Support the BioSA Incubator/Accelerator facility and program planned for Innovation Park.  Link to the University of Arizona Innovation Ecosystem to attract faculty and staff to Oro Valley via the future Veterinary College scheduled to begin with its first cohort in the Fall of 2020, or other disciplines that fit into the Town’s targeted industries.  Grow the bio economy in Oro Valley with a focus on retaining and expanding diagnostics and discovery firms.  Link primary technologies already present in Bio employers in Oro Valley (such as translational genomics, clinical pathologies, immuno-histo chemistry, in-situ hybidozation, disease security/data mining and machine learning technologies) to attract new workers and employers to the community.  Collaborate with allied organizations and create shared messaging and branding, growing inclusivity and convergence of the ‘creative class’ in Oro Valley.  Collaborate with the University of Arizona, Arizona State University, Pima College and other higher institutions to identify potential tech-transfer opportunities with prospective academic entrepreneurs.  Develop strong relationships with area venture capital firms to assist prospective entrepreneur prospects.  Seek ways in which regional resources, such as Start-up Tucson and the Pima County Small Business Development Center, can be utilized to help educate and support prospective entrepreneur prospects.  Develop a strategy to identify, engage and support community-based “solopreneurs” (consultants, early retirees, freelancers) and others who want to create new businesses.  Attract consulting service providers, such as accountants, architects, artists/artisans, engineers, scientists, management consultants, and others to Oro Valley.  Create and house specific start-up opportunities and link existing empty buildings to those specific opportunities. CEDS 2018-2023 Page 8 Develop an incentive program designed to attract primary employers and other businesses with significant local economic impacts. The Town of Oro Valley lacks a formal incentive policy or program, and having such a program is critical to Town’s ability to win highly competitive primary employer projects. Within the region, Oro Valley is the only metropolitan community without such a program, and it puts the Town at a competitive disadvantage. These programs are not all equal, but some examples of what other regional cities offer, all depending on the economic impact to the community, include:  Construction tax reimbursement.  Providing funding assistance for utility hook-ups.  Funding construction of critical infrastructure.  Employee relocation assistance reimbursement.  Allowances for landscaping, facades and signage.  Expedited development reviews.  Fee waivers/reductions.  Incentive fund availability. The following tactic is proposed:  Analyze economic development incentives offered by Arizona communities and develop proposed incentive policy for presentation to the Town Council. Attract retail to Oro Valley that is supported by area demographics. The Your Voice, Our Future General Plan includes a vision for a “complete” community, one in which connections for residents to live, recreate, dine and shop are created within the community. Over the past two years, the planning effort undertaken to make that vision a future reality has been the “Main Streets” project. Regardless of the vehicle or approach, the Town needs to continue to focus on ways in which existing and planned retail areas can be successful given the current retail shopping trends affecting the entire country. It is estimated that the densities previously identified to successfully support retail districts is now 50% higher with the transition to extensive on-line shopping. Recent confirmation that the Fry’s grocery store at Lambert and La Cañada will be relocating is a rallying cry for the Town to quickly identify, and more importantly implement, strategies that will make reinvestment in vacant buildings and development of empty pads at such retail centers attractive for CEDS 2018-2023 Page 9 investors, or the risk of a domino effect for other businesses and stores vacating those plazas increases significantly. Current ideas on the table include establishing an overlay district for key retail areas that could allow mixed uses such as apartments, art shops, Cyber cafés, etc. designed to bolster community interest, enhance the number of residential units supporting shops and restaurants, and offer opportunities for creativity in design to increase interest – all to improve long-term retail sustainability. While not specifically designated an initial “Main Streets” targeted area, the Town should strongly consider applying a similar overlay to the Oro Valley Marketplace, along with a robust retail attraction strategy, to facilitate interest by national retailers to these existing retail properties throughout the community. To that end, the Town can employ the following tactics to position Oro Valley for the best business case possible in attracting and retaining retail to the community:  Conduct an external retail assessment by a nationally recognized firm to assist the Town in collecting and analyzing the kind of data needed to identify current/future demand, facility opportunities, and community/drive-distance shopping and purchasing habits, and develop a targeted strategy to attract retailers that would be a good fit.  Explore development of a more robust Shop-Dine-Explore strategy, incorporating opportunities to create interesting linkages between agriculture, arts and crafts, farmer's markets, wellness industries and the like, linking with national growing trends to improve one’s overall ‘Health and Happiness’ (physical, social and mental health).  Identify key retail centers with current vacancies or those at risk of increasing vacancies and develop a menu of development code/zoning code/incentive options that would drive new investment and visitors/shoppers to the properties. Develop a robust economic development marketing strategy that provides targeted and expected information for business and retail prospects. Having a robust marketing attraction presence and strategy is another key component to the Town’s future economic development success. Business location consultants (also known as ‘Site Selectors’) and business prospects utilize extensive on-line research in evaluating options. Ensuring Oro Valley has cogent and current information that aligns with the needs of business prospects is an important part of the Town’s strategy. The Town must also make a concerted and strategic effort to have a visible presence in the regional business, development and real estate sectors, and have a positive message in which to communicate Oro Valley’s interest in attracting and supporting business. The following tactics will set the groundwork for success in this area: CEDS 2018-2023 Page 10  Update and enhance the economic development information on the Town’s website, seeking ways to connect prospects to all Town, regional and state information and incentives as a one- stop shop.  Identify specific, targeted primary audiences for Town economic development marketing opportunities and focus outreach strategy accordingly.  Innovate and expand economic development messaging as a vital community priority.  Elevate and resolve community competitiveness challenges.  Identify potential customized research that could be of benefit to business prospects and prepare and post information to the Town’s website.  Develop a strategy to maximize social media in the Town’s business recruitment arena and within the region.  Identify ways in which area businesses can partner with the Town to promote Oro Valley as a business location destination.  Expand the depth and breadth of Business Retention and Expansion efforts to ensure existing businesses are supported. Attract talent to support current and future primary employers and fuel new business/entrepreneur growth. The attraction and retention of world class talent is a crucial centerpiece of creating and sustaining a world-class community and economic development game plan for Oro Valley, one that will serve the community well for decades to come. Talent becomes more ubiquitous each and every day; and Oro Valley needs world class talent to compete and win in the global marketplace. Oro Valley represents only 36 square miles of Pima County’s 9,187 square miles. While Pima County boasts a population of over one million residents, Oro Valley has less than 50,000 year-round residents. More than 13,000 adult workers who live in Oro Valley leave the community to work in neighboring communities and about 8,000 workers who live in neighboring communities travel to Oro Valley to work. The “Gig Economy” is being fueled by “Solopreneurs,” many of whom were casualties of the disruptive forces brought forth from the 2008 recession. Eight million people across the country work from home; enterprising people who lost their steady employment created opportunities to freelance their work. Today, freelancing in the gig economy can provide a diverse and even exciting model of self- employment. Freelancing is more flexible due to the ever-expanding global marketplace and its vast technological innovations. E-Commerce enables a multi-national, multi-cultural exchange of professional services. Millennials are approximately 20% of Oro Valley’s population and Baby Boomers represent another 35%--collectively more than 50% of the community’s population. By 2020, 40% of millennials will work from home. National trends indicate that millennials have general preferences for smaller scale community assets focused on active lifestyles. Like all workers, they also seek career-oriented CEDS 2018-2023 Page 11 commerce, and could be a resource to tap into in helping repurpose vacant buildings with shared workspace. In addition, the “Silver Tsunami” also offers Oro Valley some exciting opportunities, as 40% of the new “Encore Entrepreneurs” are over the age of fifty.  Identify opportunities to facilitate the creation of co-working space to help accommodate the emerging independent workforce.  Partner with local businesses, workforce development organizations, higher education and other key stakeholders in developing an inclusive strategy to connect local and emerging talent with current and future employers. Review and appropriately modify Town codes to mitigate unintended consequences that put the Town at a regional competitive disadvantage. The research, interviews and analysis conducted in preparation of this CEDS Game Plan identified a recurring theme regarding some development requirements and processes that result in costs not competitive with surrounding areas. It is understood that the Town of Oro Valley offers a commodity—a high quality community with unparalleled views—that itself results in higher land costs, attractive buildings at the higher end of the cost scale, and higher commercial rents. The Town must maintain the underlying values that makes Oro Valley a highly desired place to live. But there are some requirements that have room for improvements and modifications that could serve to help Oro Valley better compete for primary sector employers as well as retailers. Also addressed further in this report, the Town does not have a reputation of moving at the ‘speed of business.’ Internal staff process improvements are noted later, but the overall processing of proposals for zoning modifications and site plans not included in the Town’s EEZ zone require significant steps and months of review. Resident input is important, but it should be noted that most communities apply the same administrative review process to commercially-zoned properties as the Town has introduced in the EEZ zone. To date, the administrative review for projects developed in Innovation Park have been very successful. The City of Tucson tapped into the Intergovernmental Agreement it had executed with Pima County to utilize the resources of the county’s building plan review team for the recently- approved Amazon building. Pima County was able to complete its full review and position the City of Tucson to issue a building permit within one week. That’s the kind of speed of business major prospects expect in a highly competitive environment. Examples of other cost impacts to commercial developments include such things as excessive landscaping requirements, the amount of open space dedication required, architectural design requirements, some public infrastructure requirements, and the 1% public art requirement. A company looking to invest $30 million for an operation is required to dedicate an additional $300,000 for public art, regardless of its location. A number of interviewees also identified restrictions in the Town’s sign code as inhibiting awareness of drive-by traffic for successful retail enterprises, particularly along the 55mph Oracle Road corridor. CEDS 2018-2023 Page 12 Without identifying the final resolution or solutions, the following tactics are proposed to mitigate competitive disadvantages associated with the Town’s development requirements:  Evaluate the Zoning Code for improvements to community engagement/input area, seeking to ensure meaningful input while eliminating duplication and redundancy.  Develop and deploy a Form-Based Code to allow for administrative approvals and ranges of performance standards in entitled, commercially-designated zoning areas.  Identify code changes that could be implemented to better allow developers to have ‘shovel ready’ sites.  Evaluate potential improvements in the architectural review process to improve consistency and reduce the number of approval steps required.  Analyze the Town’s sign code and identify potential options for modifications that would enhance retail visibility while still ensuring community aesthetic values are retained.  Develop an internal strategy that will allow the Town to offer highly accelerated plan review/permit issuance for targeted prospects, incorporating relationships with external firms, to include potential partnerships with other governmental agencies. Implement procedures to improve efficiencies and consistency in staff interaction with current and future businesses. The Town’s zoning and development codes contain specific process requirements themselves that Town staff must follow. However, there are significant opportunities in improving ‘how’ those requirements are met and the manner in which processes are implemented across multiple departments that touch the development process. Another recurring message heard from interviewees is that the Town’s process is not predictable. More can be done internally to improve predictability and better herald each applicant through the planning, permitting and building process. To that end, the following tactics will be initiated over time:  Embrace and deploy the principles and tools of the Town’s OV Peak Performance process improvement initiative and apply to the various Community and Economic Development Department planning and development processes. Focus on ways in which second and third reviews can be minimized.  Benchmark similar processes and procedures in highly successful local governments, analyze Town procedures against best practices and implement identified process improvements.  Maximize utilization of technology once process improvements have been mapped and implemented.  Support a collaborative and cohesive organizational culture by ensuring all employees actively connect individual work and processes with economic sustainability of the community. CEDS 2018-2023 Page 13 Develop objective evaluation criterion to help measure and manage the Town’s economic development efforts. Communities who target economic development as a priority need to be able to determine effectiveness of their public investments. There are benchmark measures that can be evaluated annually to assist in determining whether the actions being taken are having a measurable impact on local economic activity. A key component of the CEDS Game Plan will be regular measurement. The following performance metrics will be measured and reported each year:  Number of Primary and Service Jobs Created and Retained  Increases in inward Capital Investment  North American Industry Classification System Code Analysis  Increases in Economic Performance  Increases in Tax Base by Government Sectors  Number of New and Retained Businesses  Changes in Employment and Under-Employment  Changes in Per Capita and Household Incomes  Local Economic Base Portfolio Diversification  Number of Primary Employer Prospects  Conversion Rates and Monitoring of Close Ratios Identify opportunities to increase tourism investment in the community. Tourism is the leading export industry in the State of Arizona, with an estimated $21B impact in 2016, up 3.9% from the prior year. Oro Valley is fortunate to have a major resort as well as several second and third tier hotels to support its share of visitors. With the increase of Airbnb rentals across the country, the Town also receives revenue from property owners who take advantage of part- time residency. According to the Tucson Association of Realtors, approximately 30% of Oro Valley’s single family residences are second or third homes. The Town’s bed tax revenues continue to increase, so it would be unwise to leave tourism off the list of economic development strategies for the near future. CEDS 2018-2023 Page 14 The Town partners with Visit Tucson for most of its tourism attraction efforts. Building upon that partnership and other stakeholders, the following tactics are identified to further advance the Town’s opportunities to attract visitors to Oro Valley:  Develop and implement a modern, cohesive brand and related branding/marketing campaign highlighting Oro Valley assets and amenities that link efforts between economic development, tourism and workforce attraction.  Collaborate with public and private tourism partners/businesses to develop a more robust destination visitor strategy that takes advantage of facilities and amenities in Oro Valley and its immediate surrounds. Develop strategies to address deficiencies in the physical business development ecosystem. In order to achieve the Town’s economic development goals, the town must work toward addressing or minimizing deficiencies identified in the analysis that are hindering attraction, retention and/or expansion of business, particularly primary sector employers. Less than 200 acres of buildable primary employer land remains within the 36 square miles of Oro Valley. In comparison, the neighboring Town of Marana has approximately 10,000 acres and Tucson has even more land available. In order to fulfill the vision of the community in the Your Voice, Our Future General Plan, and to see an increase in the number of primary job opportunities provided in Oro Valley, this barrier will need to be addressed. As a frame of reference, since 2000, twelve projects were constructed at Innovation Park averaging ten acres per project. This level of absorption is consistent with other similar-sized communities. By way of comparison, while the CED Director was working in Colorado for a regional economic development organization, the 14 projects he facilitated also absorbed an average of more than ten acres per project. Average employment per project was 152 new primary jobs, or about 15 new jobs per acre. It is reasonable to assume that with the Town’s experience since 2000 and similar comparisons, that the Town could bring 20-30 new and expanded primary employment projects to Oro Valley by 2030 with a forward-focused economic development strategy. That opportunity translates into an expected need of at least 300 acres devoted to primary jobs. The Town’s primary employer land inventory is inadequate and as a result, Oro Valley is getting left behind in the competition to expand and attract new primary employers. Available land is not the only thing that is considered by site selectors when evaluating a community for a potential prospect. Other physical infrastructure is important, especially for those businesses that are among the Town’s most compatible prospects. Of particular note is the availability of high-speed internet access as the use of technology becomes the backbone of more and more businesses. In the 90+ interviews conducted for this report, the speed of internet and availability of dark fiber was identified by a number of interviewees as a barrier to some prospects and/or potential future expansions. The Town should also be very cognizant of barriers associated with connection to and reliability of electrical power, natural gas, water and wastewater, to include redundancy for some prospects. CEDS 2018-2023 Page 15  Explore opportunities to grow accessibility of dark fiber and dual service cellular providers.  Evaluate ways in which the Town can utilize its Geographic Information System (GIS) to centralize infrastructure data and make it available to prospective business prospects on a per- parcel basis.  Identify and consider potential future annexation areas that could be considered high quality candidates for future primary employer-zoned land.  Explore feasibility of converting the Town’s Municipal Operations Center (MOC) complex to primary employment sector land in the future.  Explore feasibility of expanding appropriate uses in existing commercially-designated land to allow for siting of primary employers. CEDS 2018-2023 Page 16 NEXT STEPS The implementation of this Comprehensive Economic Development Strategy (CEDS) Game Plan is dependent upon strong and dynamic partnerships with other organizations that also support business attraction and expansion. This Game Plan will help ensure that our community remains focused on advancing the economic prosperity for all who live and work in our community, and will be evaluated every year over its five-year shelf life for needed course corrections. Many of the goals and tactics will be implemented by Town staff, led by the Community and Economic Development Director. Some of the tactics will require Town Council direction and approval, and those will gradually come before the elected body as the tactics are prioritized and explored. Town staff remain committed to following the direction of the Mayor and Town Council, and will formally prioritize the goals and tactics once the elected body has had an opportunity to digest this report and express its short and long-term vision related to economic development. APPENDIX A INTERVIEWEES FOR THIS REPORT BY CATEGORY Local and Regional C-Suite Executives (12) Town of Oro Valley Officials - appointed and elected (21) Regional Governmental Officials (6) Higher Education Officials (6) Builders, Developers and their Representatives (15) Local Business Owners and Leaders (7) Health Care Executives (2) State and Regional Economic Development Officials (9) Primary/Secondary Education Leaders (1) Utility Executives (2) Financial Industry Executives (3) Regional Planning Representatives (6)