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HomeMy WebLinkAboutPackets - Council Packets (1462)       *AMENDED (1/19/21, 3:30 PM) AGENDA ORO VALLEY TOWN COUNCIL REGULAR AND STUDY SESSION JANUARY 20, 2021 ONLINE ZOOM MEETING Join Zoom Meeting: https://orovalley.zoom.us/j/96070780591 To attend via phone only, dial 1-346-248-7799 then enter Meeting/Webinar ID: 960 7078 0591 The Town recently updated its Zoom capability to allow for increased public attendance and to better facilitate the Town’s virtual meetings. When you log in to the meeting you will be added as an attendee. You will be able to address the Town Council during the “Call to Audience,” public hearing and public comment items on the agenda. If you wish to address the Council during those parts of the agenda, select “Raise your hand” from the Zoom controls and wait until you are called upon to speak by the Mayor. Town staff will then unmute your microphone and camera. For additional information about the Town’s Zoom meetings, visit https://www.orovalleyaz.gov/Government/Departments/Town-Clerk/Zoom-meeting-attendance Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS Spotlight on Youth   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.Presentation and possible discussion of the Town's FY 20/21 financial update through November 2020 1.Presentation and possible discussion of the Town's FY 20/21 financial update through November 2020   CONSENT AGENDA (Consideration and/or possible action)   A.Minutes - December 30, 2020 and January 6, 2021   B.Resolution No. (R)21-03, 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   C.Resolution No. (R)21-04, 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   REGULAR AGENDA   1.DISCUSSION AND POSSIBLE ACTION REGARDING FUNDING OF THE PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) POLICE PENSION LIABILITY THROUGH BONDS, CONTINGENCY RESERVES, OR OTHER MECHANISMS   2.*IN ACCORDANCE WITH ORO VALLEY TOWN COUNCIL PARLIAMENTARY RULES AND PROCEDURES NUMBER 11.1 (B) & (C), RECONSIDERATION OF REGULAR SESSION AGENDA ITEM NUMBER 1 FROM THE ORO VALLEY TOWN COUNCIL MEETING DATED JANUARY 6, 2021: DISCUSSION AND POSSIBLE ACTION REGARDING THE PROPOSED 1ST AVENUE AND TANGERINE ROAD GENERAL PLAN AMENDMENT AND REZONING FOR 13.44-ACRES, LOCATED SOUTH OF TANGERINE ROAD AND APPROXIMATELY 1/4-MILE EAST OF 1ST AVENUE ITEM A. RESOLUTION NO. (R)21-01, TYPE 1 GENERAL PLAN AMENDMENT TO CHANGE TWO KAI-CAPRI SPECIAL AREA POLICIES TO ALLOW R-6 MULTI-FAMILY RESIDENTIAL DISTRICT ZONING USES ON A VACANT COMMERCIAL PARCEL (2001085) ITEM B. ORDINANCE NO. (O)21-01, REZONING TO CHANGE THE ZONING DESIGNATION OF A VACANT PARCEL FROM C-1 COMMERCIAL TO R-6 MULTI-FAMILY RESIDENTIAL (2001306)   FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)   ADJOURNMENT OF THE REGULAR SESSION   STUDY SESSION   STUDY SESSION AGENDA   1.PRESENTATION OF OPEN MEETING LAW TRAINING   ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.   POSTED: 1/13/21 at 5:00 p.m. by pp AMENDED AGENDA POSTED 1/19/21 at 4:00 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. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. 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. In accordance with Amendment #2 of the Mayoral Proclamation of Emergency issued on March 27, 2020, the following restrictions have been placed on all public meetings until further notice: 1. In-person attendance by members of the public is prohibited. 2. Members of the public can either watch the public meeting online https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas or, if they would like to participate in the meeting (e.g. speak at Call to Audience or speak on a Regular Agenda item), they can attend the meeting and participate via the on-line meeting application, Zoom, https://orovalley.zoom.us/j/96070780591, or may participate telephonically only by dialing 1-346-248-7799 then enter Meeting ID: 960 7078 0591 prior to or during the posted meeting. 3. If a member of the public would like to speak at either Call to Audience or on a Regular Agenda item, it is highly encouraged to email your request to speak to Bluecard@orovalleyaz.gov and include your name and town/city of residence in order to provide the Mayor/Chair with advance notice so you can be called upon more efficiently during the Zoom meeting. 4. All members of the public who participate in the Zoom meeting either with video or telephonically will enter the meeting with microphones muted. For those participating via computer/tablet/phone device, you may choose whether to turn your video on or not. If you have not provided your name to speak prior to the meeting as specified in #3 above, you will have the opportunity to be recognized when you “raise your hand.” Those participating via computer/tablet/phone device can click the “raise your hand” button during the Call to the Public or Regular Agenda item, and the Chair will call on you in order, following those who submit their names in advance. For those participating by phone, you can press *9, which will show the Chair that your hand is raised. When you are recognized at the meeting by the Chair, your microphone will be unmuted by a member of staff and you will have three minutes to speak before your microphone is again muted. 5. If a member of the public would like to submit written comments to the Town Council for their consideration prior to the meeting, please email those comments to mstandish@orovalleyaz.gov no later than sixty minutes before the public meeting. Those comments will then be electronically distributed to the public body prior to the meeting. If you have questions, please contact Town Clerk, Mike Standish, at 520-229-4700 or email at mstandish@orovalleyaz.gov Thank you for your cooperation.    Town Council Regular Session 1. Meeting Date:01/20/2021   PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 20/21 FINANCIAL UPDATE THROUGH NOVEMBER 2020 Subject Presentation and possible discussion of the Town's FY 20/21 financial update through November 2020 Summary This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through November 2020 for fiscal year 2020/21. Funds included in this financial update are the General Fund, Highway Fund and Community Center Fund. All amounts are preliminary, un-audited and subject to change based upon adjusting entries, as necessary.   EXECUTIVE SUMMARY:   The Town continues to navigate the global pandemic that is shaping and significantly changing financial forecasts. The Town has seen the effects of this on revenues, although not to the degree that was originally anticipated. Reserves continue to be strong and the Town is continuing to streamline operations, improve efficiencies and cut costs, all while maintaining service levels to the greatest degree possible. General Fund Overall, General Fund revenues and expenditures are trending slightly better than originally anticipated through November 2020 (See Attachment A). Revenues total $23.1 million or 53.3% of budget, while expenditures are modestly below budget at $15.7 million or 35.2% of the total budget. The Town officially received its $5.3 million share of AZ Cares funding in August, which is reflected in the federal grants revenue category. Highway Fund Revenues and expenditures for the Highway Fund are trending as expected through November 2020 (See Attachment B). Revenues total approximately $1.5 million or 41.7% of budget while expenditures total $1.7 million or 45.3% of budget. Community Center Fund Current revenues and expenditures for the Community Center Fund are largely as anticipated through November (See Attachment C-1 & C-2). Revenues are 35.1% of budget while expenditures are at 34.7% of budget.     BACKGROUND AND DETAILED INFORMATION:   GENERAL FUND Attachment A shows General Fund revenues and expenditures through November, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows:   Revenues:                                                                                           $44,532,224 Less: Expenditures:                                                                                     ($43,821,519)   Preliminary Estimated Change in Fund Balance: $710,705 *   *The adopted fiscal year 2020/21 budgeted change in fund balance is $(1,225,025) General Fund Revenues Local sales tax collections in the General Fund total $9.0 million or 49.7% of the budget amount of $18.1 million, and are modestly stronger than anticipated. Construction sales tax collections remain strong, totaling $2.5 million through November 2020. Retail collections total $3.0 million, which are $263,000 or 9.6% higher than collections from the same time period last fiscal year. However, both restaurant/bar collections as well as bed tax collections are down 12.0% and 32.5% respectively compared to collections from the same time period last fiscal year. Please see Attachment E for detailed information on General Fund local sales tax collections. License and permit revenues total $1.4 million or 88.7% of the budget amount of $1.6 million. Single Family Residential (SFR) permits issued through November total 185 and are a large portion of this revenue piece. For reference, through the first five months of last fiscal year, the Town had issued 100 SFR permits. Commercial permit revenue is the other main portion of this category and includes large one-time permit revenue. This revenue category is expected to come in over budget by approximately $767,000. State shared revenues total $5.8 million or 43.9% of the budget amount of $13.2 million. These revenues sources are comprised of state shared sales taxes, state shared income taxes and auto-lieu fees. At this point in time, all three revenues sources are trending largely as expected. Other intergovernmental revenues include RTA reimbursements for transit services, school resource officers, and animal control revenues. This category is currently under budget and anticipated to end the fiscal year below budget due to reduced ridership demand causing reductions in RTA transit reimbursements. Charges for services revenues total $831,000 or 37.1% of the budget amount of $2.2 million. A large portion of these revenues are associated with Parks & Recreation program revenues. As anticipated, these revenues sources are slightly lagging due to COVID-19. Federal grant revenues include the $5.3 million of AZ Cares funding allotted to the Town, which was received earlier in the fiscal year.   General Fund Expenditures General Fund expenditures are trending as expected through November 2020 and are estimated to come in slightly under budget at this time primarily due to personnel savings from position vacancies and projected O&M savings from one-time projects. At this point in time, the General Fund is estimated to end the fiscal year approximately $754,000 or 1.7% below the adopted budget amount of $44.6 million. Overall, departments continue to be mindful of spending, and many large one-time costs have been deferred until the Town is confident revenues can support these expenses. The General Fund is expected to end the fiscal year with a total fund balance of $22.1 million, or 49.5% of budgeted expenditures.   HIGHWAY FUND Highway Fund Revenues State shared highway user funds total $1.5 million or 43.9% of the budget amount of $3.5 million. At this point in time, these revenues are estimated to come in slightly above budgeted levels by $45,000. State grant revenues are reimbursable costs by the RTA related to the La Cholla Road widening project. As this project is substantially complete, there are no additional reimbursements expected at this time. Transportation Engineering expenditures have been reduced as well. All other revenue sources for the Highway Fund are expected to end the fiscal year near budgeted levels at this point in time. Highway Fund Expenditures Highway Fund expenditures are currently $1.7 million or 45.3% of the adopted budget of $3.9 million. This is expected as costs related to the Town’s fall Pavement Preservation Program have been accounted for. Highway Fund expenditures are estimated to come in under budget by $105,000 due to reimbursable costs related to the La Cholla Road widening project. The Highway Fund is expected to end the fiscal year with a fund balance of approximately $594,000.   COMMUNITY CENTER FUND Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from the golf operator and Town-managed operations. Attachment C-2 shows the monthly line item detail for the contract 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. Community Center Fund Revenues Revenues in the Community Center Fund through November 2020 total $2.5 million or 35.1% of the budget amount of $7.1 million. Contracted operating revenues from the golf operator total $1.3 million. This is approximately $234,500 or 21.6% higher than revenues from the same time period last fiscal year. At this point in time, contracted revenues are estimated to come in under budget by approximately $110,000 primarily caused by COVID-19 disruptions to food & beverage sales. Town operating revenues through November total $75,204. This revenue source is preliminarily expected to end the fiscal year about $510,000 or 53.4% under budget, due to the impacts of COVID-19 on member dues and recreation program revenue. Roughly $100,000 of this shortfall is expected to be offset by savings in Town operating expenditures. Staff will continue monitoring these figures closely.  Local sales tax revenues for November total $1.1 million or 43.7% of the budget amount of $2.5 million. These collections are currently estimated to come in slightly above budgeted levels at this time. Community Center Fund Expenditures Expenditures in the Community Center Fund total $2.4 million or 34.7% of the budget amount of $6.9 million. Contracted operating expenditures from the golf operator total just under $2.0 million, or 44.0% of the budgeted amount of $4.5 million. Contracted expenditures are estimated to come in under budget by approximately $180,000 due to personnel and equipment lease savings. Overall expenditures for the fund are estimated to come in under budget by $277,000 or 4.0%, due to a combination of anticipated personnel, O&M, and lease savings. At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance of $858,621.   Please see Attachments A and B for additional details on the General Fund and Highway Fund. See Attachments C-1 and C-2 for additional details on the Community Center Fund. See Attachment D for a fiscal year-to-date consolidated summary of all Town Funds. See Attachment E for a breakdown of monthly local sales tax collections for the General Fund.   Attachments Attachment A - General Fund  Attachment B - Highway Fund  Attachment C1 - Community Center Fund  Attachment C2 - Cash Flow Statement  Attachment D - Summary All Funds  Attachment E - General Fund Sales Tax  Staff Presentation  ATTACHMENT A November YTD Financial Status General Fund % Budget Completion through November --- 41.7% % Actuals YE % Variance to Budget to Budget REVENUES: LOCAL SALES TAX 9,001,782 18,128,304 49.7%18,908,247 4.3% LICENSES & PERMITS 1,412,515 1,592,500 88.7%2,359,500 48.2% FEDERAL GRANTS 5,455,259 5,790,969 94.2%5,790,969 0.0% STATE GRANTS 59,900 75,000 79.9%75,000 0.0% STATE/COUNTY SHARED 5,797,305 13,194,438 43.9%13,201,333 0.1% OTHER INTERGOVERNMENTAL 236,488 1,672,000 14.1%1,292,000 -22.7% CHARGES FOR SERVICES 830,564 2,239,675 37.1%2,112,175 -5.7% FINES 51,398 125,000 41.1%125,000 0.0% INTEREST INCOME 212,540 150,000 141.7%290,000 93.3% MISCELLANEOUS 40,811 262,500 15.5%258,000 -1.7% TRANSFERS IN - 120,000 0.0%120,000 0.0% TOTAL REVENUES 23,098,562 43,350,386 53.3%44,532,224 2.7% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CLERK 175,081 428,524 40.9%428,524 0.0% COMMUNITY & ECON. DEV.1,026,873 2,779,661 36.9%2,731,756 -1.7% COUNCIL 95,209 197,019 48.3%197,019 0.0% FINANCE 307,908 832,888 37.0%832,888 0.0% GENERAL ADMINISTRATION 1,328,542 5,251,466 25.3%5,038,966 -4.0% HUMAN RESOURCES 174,644 457,347 38.2%447,153 -2.2% INNOVATION & TECHNOLOGY 1,541,085 3,944,198 39.1%3,944,198 0.0% LEGAL 299,258 870,592 34.4%845,997 -2.8% MAGISTRATE COURT 300,984 864,826 34.8%864,678 0.0% MANAGER 346,206 1,028,734 33.7%1,007,871 -2.0% PARKS & RECREATION 1,133,809 3,478,517 32.6%3,455,760 -0.7% POLICE 6,164,388 16,953,228 36.4%16,769,857 -1.1% PUBLIC WORKS 1,394,770 4,898,891 28.5%4,667,333 -4.7% TRANSFERS OUT 1,405,758 2,589,520 54.3%2,589,520 0.0% TOTAL EXPENDITURES 15,694,515 44,575,411 35.2%43,821,519 -1.7% SURPLUS / (DEFICIT)7,404,047 (1,225,025) 710,705 BEGINNING FUND BALANCE **21,375,594 Plus: Surplus / (Deficit)710,705 ENDING FUND BALANCE ***22,086,299 * Year-end estimates are subject to further revision ** Beginning fund balance amounts are estimates and are subject to further revision *** Ending fund balance amounts are estimates and are subject to further revision FY 2020/2021 Year End Estimate * Budget Year End Estimate * Actuals thru 11/2020 Actuals thru 11/2020 Budget ATTACHMENT B November YTD Financial Status FY 2020/2021 % Budget Completion through November --- 41.7% Actuals thru 11/2020 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES: LICENSES & PERMITS 14,999 25,000 60.0%25,050 0.2% STATE GRANTS - 210,000 0.0%- -100.0% STATE/COUNTY SHARED 1,519,604 3,458,929 43.9%3,503,895 1.3% INTEREST INCOME 7,083 5,000 0.0%6,000 0.0% MISCELLANEOUS 1,243 2,000 62.2%2,000 0.0% TOTAL REVENUES 1,542,929 3,700,929 41.7%3,536,945 -4.4% Actuals thru 11/2020 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: TRANSPORTATION ENGINEERING 1,632,667 3,512,881 46.5%3,407,881 -3.0% STREET MAINTENANCE 116,573 348,220 33.5%348,220 0.0% TOTAL EXPENDITURES 1,749,240 3,861,101 45.3%3,756,101 -2.7% SURPLUS / (DEFICIT)(206,311) (160,172) (219,156) BEGINNING FUND BALANCE **813,563 Plus: Surplus / (Deficit)(219,156) ENDING FUND BALANCE ***594,407 *Year-end estimates are subject to further revision ** Beginning fund balance amounts are estimates and are subject to further revision *** Ending fund balance amounts are estimates and are subject to further revision - Highway Fund ATTACHMENT C-1 November YTD Financial Status % Budget Completion through November --- 41.7% % Actuals YE % Variance to Budget to Budget REVENUES: CONTRACTED OPERATING REVENUES Golf Revenues, Trail and Cart Fees 743,369 1,567,840 47.4%1,836,500 17.1% Member Dues 390,289 850,000 45.9%910,000 7.1% Food & Beverage 129,888 760,776 17.1%500,000 -34.3% Merchandise & Other 55,360 325,933 17.0%147,100 -54.9% 1,318,906 3,504,548 37.6%3,393,600 -3.2% TOWN OPERATING REVENUES Daily Drop-Ins 7,004 30,000 23.3%26,000 -13.3% Member Dues 52,323 707,000 7.4%350,000 -50.5% Recreation Programs 2,831 160,000 1.8%16,000 -90.0% Swim Team/Swim Lessons - 8,000 0.0%8,000 0.0% Facility Rental Income 12,986 50,500 25.7%45,000 -10.9% Concession Sales 60 100 60.0%100 0.0% 75,204 955,600 7.9%445,100 -53.4% OTHER REVENUES Local Sales Tax 1,090,173 2,492,960 43.7%2,564,310 2.9% Real Property Rental Income - 19,502 0.0%19,502 0.0% Interest Income 5,314 1,000 531.4%5,000 400.0% Miscellaneous 2,060 125,000 0.0%127,060 1.6% 1,097,547 2,638,462 41.6%2,715,872 2.9% TOTAL REVENUES 2,491,657 7,098,610 35.1%6,554,572 -7.7% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CONTRACTED OPERATING EXPENDITURES Personnel 644,317 1,847,606 34.9%1,725,000 -6.6% Operations & Maintenance 1,224,126 2,353,430 52.0%2,386,800 1.4% Equipment Leases 108,812 294,792 36.9%204,045 -30.8% 1,977,255 4,495,828 44.0%4,315,845 -4.0% TOWN OPERATING EXPENDITURES Personnel 213,771 762,713 28.0%690,697 -9.4% Operations & Maintenance 39,420 216,037 18.2%190,977 -11.6% 253,191 978,750 25.9%881,674 -9.9% CAPITAL OUTLAY - 1,124,500 0.0%1,124,500 0.0% TRANSFERS OUT 158,302 278,302 56.9%278,302 0.0% TOTAL EXPENDITURES 2,388,748 6,877,380 34.7%6,600,321 -4.0% SURPLUS / (DEFICIT)102,909 221,230 (45,749) BEGINNING FUND BALANCE **904,370 Plus: Surplus / (Deficit)(45,749) ENDING FUND BALANCE ***858,621 * Year-end estimates are subject to further revision ** Beginning fund balance amounts are estimates and are subject to further revision *** Ending fund balance amounts are estimates and are subject to further revision FY 2020/2021 Actuals thru 11/2020 Budget Year End Estimate * Community Center Fund Actuals thru 11/2020 Budget Year End Estimate * ATTACHMENT C-2 July 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 2020 Jan.2021 Feb. 2021 Mar. 2021 April 2021 May 2021 June 2021 YTD FY 2021 FY 2021 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Forecast REVENUES: Green Fees 104,791 105,899 122,143 93,295 171,862 597,990 1,333,602 1,500,000 Cart Fees 18,898 19,444 19,752 20,236 19,956 98,286 234,237 230,000 Driving Range 1,644 2,670 4,685 5,054 4,366 18,419 65,695 46,500 Golf Cards/Passes (709) - 709 - - - - - Pro Shop Sales 11,834 10,009 10,825 8,276 14,099 55,043 222,238 145,000 Other Golf Rev.4,015 3,186 4,282 2,300 9,313 23,096 3,000 45,000 Clinic/School Rev.360 1,243 1,184 864 1,927 5,578 15,000 15,000 Monthly Dues 74,950 82,272 75,649 77,485 79,933 390,289 850,000 910,000 Misc. & Discounts (642) 323 133 951 (448) 317 20,000 2,100 Food & Beverage 24,734 22,371 23,461 22,740 36,582 129,888 760,776 500,000 - TOTAL REVENUES:239,875 247,417 262,823 231,201 337,590 - - - - - - - 1,318,906 3,504,548 3,393,600 COST OF SALES: Pro Shop 9,815 8,835 10,735 5,880 11,797 47,062 144,454 119,910 Lessons & Group Services - - - - - - 13,350 - Food & Beverage 8,569 7,784 8,471 9,529 12,831 47,184 256,095 160,000 TOTAL COST OF SALES:18,384 16,619 19,206 15,409 24,628 - - - - - - - 94,246 413,899 279,910 GROSS INCOME:221,491 230,798 243,617 215,792 312,962 - - - - - - - 1,224,660 3,090,649 3,113,690 EXPENDITURES: Personnel 109,851 143,900 119,840 135,250 135,476 644,317 1,847,606 1,725,000 Golf Operations 5,503 1,778 2,224 6,329 17,209 33,043 30,900 58,000 G&A 20,792 52,369 24,364 12,231 22,577 132,333 135,509 350,000 Maintenance 148,148 151,140 221,930 219,568 118,088 858,874 1,524,660 1,450,000 Sales & Marketing 1,284 2,415 2,083 3,515 1,691 10,988 42,100 16,700 Food & Beverage 1,521 1,531 2,075 1,802 2,808 9,737 81,362 60,000 Management Fees 10,000 10,000 10,000 10,000 10,000 50,000 120,000 120,000 Golf Cart Leases 13,041 13,041 13,041 13,041 18,092 70,256 156,488 156,488 Equipment Leases 19,277 19,280 - - - 38,557 138,304 47,557 Other Expenses 12,590 - - - - 12,590 3,000 12,590 Insurance - P&C 3,300 3,300 3,300 3,300 9,115 22,315 2,000 39,600 TOTAL EXPENDITURES:345,306 398,754 398,857 405,036 335,056 - - - - - - - 1,883,009 4,081,929 4,035,935 NET INCOME:(123,815) (167,956) (155,240) (189,244) (22,094) - - - - - - - (658,349) (991,280) (922,245) El Conquistador Cash Flow Statement ATTACHMENT D Consolidated Year-to-Date Financial Report through November, 2020 FY 2020/2021 FY 20/21 Capital Leases/Left in Accounts Est. Begin Bal.Transfer Out Thru Nov. 2020 General Fund 21,375,594 23,098,562 23,098,562 1,405,758 10,464,584 3,676,430 147,743 15,694,515 28,779,641 Highway Fund 813,563 1,542,929 1,542,929 482,624 169,924 1,096,692 1,749,240 607,252 Seizure & Forfeiture - Justice/State 244,193 18,326 18,326 43,701 22,715 66,416 196,103 Community Center Fund 904,370 2,491,657 2,491,657 267,114 858,088 1,263,546 2,388,748 1,007,279 Municipal Debt Service Fund 169,720 61,839 1,076,200 1,138,039 5,600 1,086,011 1,091,611 216,148 Oracle Road Debt Service Fund 6,841 68,904 68,904 - 75,745 Water Resource System & Dev. Impact Fee Fund 16,590,510 1,596,432 1,596,432 40,500 1,236,428 1,276,928 16,910,014 Townwide Roadway Dev Impact Fee Fund 2,875,534 205,389 205,389 - 3,080,923 Parks & Recreation Impact Fee Fund 792,111 148,456 148,456 466,539 466,539 474,028 Police Impact Fee Fund 104,969 60,087 60,087 100,000 100,000 65,056 Capital Fund 2,450,431 437,945 590,381 1,028,326 676,411 676,411 2,802,346 PAG/RTA Fund 1,512,406 78,295 78,295 2,276,315 2,276,315 (685,614) Water Utility 16,170,255 8,484,983 107,973 8,592,956 2,521 1,286,063 3,057,729 617,902 4,964,215 19,798,996 Stormwater Utility 781,709 615,803 615,803 310,855 105,049 15,352 431,256 966,256 Benefit Self Insurance Fund 2,043,728 1,572,654 1,572,654 1,528,132 1,528,132 2,088,250 Recreation In-Lieu Fee Fund 16,100 108 108 - 16,208 Total 83,442,544 40,482,369 1,774,554 42,256,923 1,775,393 13,402,214 9,890,611 6,556,097 - 1,086,011 32,710,326 92,989,141 Fund Revenue Other Fin Sources/ Tfrs Total In Debt Service Total OutPersonnelO&M Capital Contingency ATTACHMENT E General Fund Local Sales Tax Collections FY 2020/21 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL Construction Sales Tax 643,435 471,705 517,101 483,032 384,176 2,499,449 Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 1,601,805 Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 3,007,050 Bed Tax 42,564 33,546 32,879 38,003 170,718 317,710 Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 649,675 All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 754,596 TOTAL 1,846,071$ 1,710,698$ 1,719,904$ 1,745,360$ 1,808,253$ 8,830,286$ FY 2019/20 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL Construction Sales Tax 517,637 462,244 615,858 617,534 412,787 459,531 281,257 380,036 315,236 504,767 492,156 511,642 5,570,685 Utility Sales Tax 234,537 311,362 320,239 325,272 244,544 210,285 218,262 264,950 224,019 198,472 192,478 226,165 2,970,585 Retail Sales Tax 555,057 542,964 524,735 491,087 630,262 661,184 892,958 582,264 553,726 630,299 560,570 634,962 7,260,068 Bed Tax 54,830 91,322 99,278 104,342 120,624 123,846 109,383 142,745 100,338 51,680 14,780 21,154 1,034,323 Restaurant & Bar Sales Tax 142,433 139,049 154,388 151,118 150,996 176,520 173,479 175,764 138,125 129,206 93,589 119,171 1,743,839 All Other Local Sales Tax *46,762 59,797 66,191 63,774 119,804 155,857 181,405 158,895 123,624 111,669 101,265 108,652 1,297,696 TOTAL 1,551,256$ 1,606,738$ 1,780,689$ 1,753,127$ 1,679,017$ 1,787,223$ 1,856,744$ 1,704,654$ 1,455,069$ 1,626,093$ 1,454,838$ 1,621,747$ 19,877,196$ * Note: Does not include cable franchise fees or sales tax audit revenues Fiscal Year 2020/21 Financial Update Through November 2020 January 20, 2021 GENERAL FUND REVENUES REVENUE SOURCE Budget Actuals Thru 11/2020 % of Budget Year -End Estimate Notes Local Sales Taxes $ 18,128,304 $ 9,001,782 49.7%$ 18,908,247 Trending over budget due to strong construction, retail, utility and online collections State Shared Revenues 13,194,438 5,797,305 43.9%13,201,333 Trending as expected with vehicle license tax revenues slightly above budgeted levels Charges for Services 2,239,675 830,564 37.1%2,112,175 Slightly below budget due to impacts of COVID-19 Licenses & Permits 1,592,500 1,412,515 88.7%2,359,500 Trending over budget due to increased commercial and residential activity All Other 8,195,469 6,056,396 73.9%7,950,969 Includes grants, intergovernmental revenue, transfers, miscellaneous revenue and AZ Cares funding TOTAL GENERAL FUND REVENUES $ 43,350,386 $ 23,098,562 53.3%$ 44,532,224 Year -end estimate $1.2M or 2.7% above budget due to additional permit revenues and sales tax collections GENERAL FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 11/2020 % of Budget Year -End Estimate Notes Personnel $ 28,976,810 $ 10,464,584 36.1%$ 28,463,051 Actuals slightly below budget due to timing of payroll; year-end estimate reflects vacancy savings Operations & Maintenance 11,451,081 3,676,430 32.1%11,230,949 Actuals slightly below budget, but expected to be near budgeted levels by end of fiscal year Capital 1,558,000 147,743 9.5%1,538,000 Actuals below budget, but will accelerate as projects commence Transfers Out 2,589,520 1,405,758 54.3%2,589,520 Trending as expected; current transfers are related to debt service and CIP TOTAL GENERAL FUND EXPENDITURES $ 44,575,411 $ 15,694,515 35.2%$ 43,821,519 Year -end estimate $754K or 1.7% below budget due to personnel and O&M savings YTD Surplus/(Deficit): $7.4M Year -End Estimated Surplus/(Deficit): $710,705 Estimated Ending Fund Balance: $22.1M GENERAL FUND $16.2M $16.8M $23.1M $15.7M $43.4M $44.6M $.0M $5.0M $10.0M $15.0M $20.0M $25.0M $30.0M $35.0M $40.0M $45.0M $50.0M Revenues Expenditures General Fund FY 20/21 Through November PY Actual CY Actual CY Budget HIGHWAY FUND Revenues: State shared highway user (HURF) revenues total $1.5 million through November, or 43.9% of budget •Expected to end the fiscal year slightly above budgeted levels Grant revenues are related to reimbursements for the La Cholla project •Project is substantially complete, and no additional reimbursements are anticipated at this time Expenditures: Highway Fund expenditures total $1.7 million, or 45.3% of budget through November •Figures include the fall portion of the Town’s Pavement Preservation Program Expenditures anticipated slightly below budget due to personnel savings YTD Surplus/(Deficit): $(206,311) Year -End Estimated Surplus/(Deficit): $(219,156) Estimated Ending Fund Balance: $594,407 HIGHWAY FUND $1.8M $1.2M $1.5M $1.7M $3.7M $3.9M $.0M $.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M $4.5M $5.0M Revenues Expenditures Highway Fund FY 20/21 Through November PY Actual CY Actual CY Budget COMMUNITY CENTER FUND Revenues: Contracted operating revenues at 37.6% of budget, or $1.3 million through November •$234,500 or 21.6% higher than revenues compared to same period last fiscal year Town operating revenues below budget due to COVID-19 Half-cent sales tax revenues trending as expected at $1.1 million, or 43.7% of budget Expenditures: Contracted expenditures at 44.0% of budget, or about $2.0 million through November •$138,700 or 6.6% lower than expenditures compared to same period last fiscal year Town operating expenditures below budget due to COVID-19 YTD Surplus/(Deficit): $102,909 Year -End Estimated Surplus/(Deficit): $(45,749) Estimated Ending Fund Balance: $858,621 COMMUNITY CENTER FUND $2.5M $2.7M$2.5M $2.4M $7.1M $6.9M $.0M $1.0M $2.0M $3.0M $4.0M $5.0M $6.0M $7.0M $8.0M Revenues Expenditures Community Center Fund FY 20/21 Through November PY Actual CY Actual CY Budget Questions?    Town Council Regular Session A. Meeting Date:01/20/2021   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - December 30, 2020 and January 6, 2021 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 December 30, 2020 and January 6, 2021 minutes.  Attachments 12-30-20 Draft Minutes  1-6-21 Draft Minutes  D R A F T  MINUTES ORO VALLEY TOWN COUNCIL SPECIAL SESSION December 30, 2020 ONLINE ZOOM MEETING            Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.   SPECIAL SESSION AT OR AFTER 5:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 5:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember SPECIAL SESSION AGENDA    Mayor Winfield provided the guidelines for participation in the Town Council's Special Session Zoom meeting.   1.BEFORE THE TOWN COUNCIL’S FUTURE CONSIDERATION OF RESOLUTION NO. (R)21-01 AND (O)21-01: PUBLIC HEARING PRESENTATION AND POSSIBLE DISCUSSION ABOUT A PROPOSED GENERAL PLAN AMENDMENT TO CHANGE TWO KAI-CAPRI SPECIAL AREA POLICIES TO ALLOW R-6 MULTI-FAMILY RESIDENTIAL DISTRICT ZONING USES ON A VACANT 13.44-ACRE COMMERCIAL PARCEL, LOCATED SOUTH OF TANGERINE ROAD AND APPROXIMATELY 1/4-MILE EAST OF 1ST AVENUE (2001085)       Oro Valley Senior Planner Hannah Oden presented item #1 and included the following: 12-30-20 Minutes, Town Council Special Session 1  Oro Valley Senior Planner Hannah Oden presented item #1 and included the following: Purpose Applicant's Request Summary and Recommendation Paul Oland, Owner of Paradigm Land Design and representing the applicant spoke regarding the proposed General Plan Amendment for the Kai-Capri Special Area Policies. Mayor Winfield opened the public hearing. The following individuals spoke in opposition to item #1. Oro Valley resident Jack Stinnett Oro Valley resident Rosa Dailey Oro Valley resident Tom Stegman Oro Valley resident Teresa Marrow Oro Valley resident Rich Molnar Oro Valley resident Fred Christensen Oro Valley resident Shirl Lamonna Oro Valley resident Terry Hart Oro Valley resident Craig MacKay The following individuals spoke in support of item #1. President and CEO of the Oro Valley Chamber of Commerce and resident of Oro Valley Dave Perry. Mayor Winfield closed the public hearing. Discussion ensued amongst Council, staff and Mr. Oland regarding item #1.   2.APPROVAL OF APPOINTMENTS TO THE STORMWATER UTILITY COMMISSION AND THE PLANNING AND ZONING COMMISSION       Motion by Vice Mayor Melanie Barrett, to approve the appointment to the Planning and Zoning Commission and the Stormwater Utility Commission. No second received. Discussion ensued amongst Council and staff regarding item #2.    Motion by Vice Mayor Melanie Barrett, seconded by Mayor Joseph C. Winfield that the following appointments to the Stormwater Utility Commission and the Planning and Zoning Commission be made effective January 1, 2021: David Parker to the Stormwater Utility Commission for a term expiring December 31, 2022, and Robert Henderson to fulfill a partial term vacancy expiring December 31, 2021.  Vote: 7 - 0 Carried   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Steve Solomon to adjourn the meeting at 5:45 p.m.  Vote: 7 - 0 Carried 12-30-20 Minutes, Town Council Special Session 2     ___________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 30th day of December 2020. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2020. ___________________________ Michael Standish, CMC Town Clerk 12-30-20 Minutes, Town Council Special Session 3 D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION JANUARY 6, 2021 ONLINE ZOOM MEETING            REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 4:03 p.m   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Steve Solomon, Councilmember Absent: Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember EXECUTIVE SESSION - Pursuant to A.R.S. §38-431.03(A)(1) and/or (A)(3) and applicable caselaw, e.g., Bd. of Regents v. Phx. Newspapers, regarding: Town Magistrate prospects    Councilmember Jones-Ivey joined the meeting at 4:06 p.m.    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to go into Executive Session at 4:07 p.m. Pursuant to A.R.S. §38-431.03(A)(1) and/or (A)(3) and applicable caselaw, e.g., Bd. of Regents v. Phx. Newspapers, regarding: Town Magistrate prospects Mayor Winfield announced that the following staff members would be joining Council in the Executive Session: Town Manager Mary Jacobs, Assistant Town Manager Chris Cornelison, Human Resources Director Judy Boros, Town Attorney Gary Cohen and Town Clerk Mike Standish.  Vote: 5 - 0 Carried   RECONVENE REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield reconvened the Regular Session at 6:01 p.m.   1-6-21 Minutes, Oro Valley Town Council Regular Session 1    ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Steve Solomon, Councilmember Absent: Josh Nicolson, Councilmember   PLEDGE OF ALLEGIANCE    Vice-Mayor Barrett led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town meetings.   COUNCIL REPORTS    Mayor Winfield recognized Oro Valley Economic Development Specialist Margie Adler for her assistance and outreach to the Oro Valley business community. Councilmember Greene reported that he and Mayor Winfield attended the Shop with a Cop event and thanked the Oro Valley Police Department for this outstanding event. Councilmember Bohen reported that he also enjoyed attending the Shop with a Cop event.   TOWN MANAGER'S REPORT    Town Manager Mary Jacobs reported the following information: The 23rd Annual Community Academy was scheduled for February 2021 Update on This is Oro Valley podcast Update on the OVsafesteps Program Status update regarding the Pusch 9 Golf Course discussions Status update regarding Romspen and the former Vistoso Golf Course Introduced Paul Melcher as the new Oro Valley Community and Economic Development Director   ORDER OF BUSINESS    Mayor Winfield re-organized the agenda as follows: the second Executive Session item and Regular Session item #4 would be removed from the agenda. All other agenda items would remain as posted. Mayor Winfield provided the guidelines for participation in the Town Council's Regular Session Zoom meeting.   1-6-21 Minutes, Oro Valley Town Council Regular Session 2    INFORMATIONAL ITEMS    There were no informational items.   CALL TO AUDIENCE    Oro Valley resident Rosa Daily spoke regarding the Vistoso Golf Course. Oro Valley resident Ray Barth spoke regarding the Vistoso Golf Course. Oro Valley resident Richard Beam spoke regarding the Vistoso Golf Course. Oro Valley resident Tom Stegman spoke regarding the Vistoso Golf Course. Oro Valley resident Teresa Marro spoke regarding the Vistoso Golf Course. Oro Valley resident Rich Molnar spoke regarding the Vistoso Golf Course.   PRESENTATIONS   1.Presentation - Youth Art Program by the Arts and Culture Ambassadors       Arts and Cultural Ambassador Sasha Case introduced the pieces of artwork via video which were created by students from Innovation Academy   2.Presentation and update by President/CEO Dave Perry of the Greater Oro Valley Chamber of Commerce       President and CEO of the Greater Oro Valley Chamber of Commerce Dave Perry presented the Greater Oro Valley Chamber of Commerce annual report. Discussion ensued amongst Council, staff and Mr. Perry regarding the presentation of the Greater Oro Valley Chamber of Commerce annual report. Councilmember Nicolson joined the meeting.   CONSENT AGENDA   A.Minutes - December 2 and December 16, 2020      B.Request for a Final Plat Amendment for La Reserve Villas, a 49-lot residential subdivision located 1/4 mile east of Oracle Road and north of Pusch Wilderness Dr. within the La Reserve Planned Area Development      C.Approval of any direction and delegation of authority to the Town Manager and necessary staff as discussed in executive session       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve 1-6-21 Minutes, Oro Valley Town Council Regular Session 3   Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve consent agenda items (A) - (C).  Vote: 7 - 0 Carried   REGULAR AGENDA   1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR LICENSE FOR THE SALTED PIG AMERICAN BARBEQUE, LOCATED AT 11835 N. ORACLE RD, STE #101       Town Clerk Mike Standish presented item #1. Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to recommend approval of the issuance of a Series 12 Liquor License to the Arizona Department of Liquor Licenses and Control for Jacob Aaron Hoffman for the Salted Pig American Barbeque, located at 11835 N. Oracle Road, Ste #101.  Vote: 7 - 0 Carried   2.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING THE PROPOSED 1ST AVENUE AND TANGERINE ROAD GENERAL PLAN AMENDMENT AND REZONING FOR 13.44-ACRES, LOCATED SOUTH OF TANGERINE ROAD AND APPROXIMATELY 1/4-MILE EAST OF 1ST AVENUE ITEM A. RESOLUTION NO. (R)21-01, TYPE 1 GENERAL PLAN AMENDMENT TO CHANGE TWO KAI-CAPRI SPECIAL AREA POLICIES TO ALLOW R-6 MULTI-FAMILY RESIDENTIAL DISTRICT ZONING USES ON A VACANT COMMERCIAL PARCEL (2001085) ITEM B. ORDINANCE NO. (O)21-01, REZONING TO CHANGE THE ZONING DESIGNATION OF A VACANT PARCEL FROM C-1 COMMERCIAL TO R-6 MULTI-FAMILY RESIDENTIAL (2001306)       Oro Valley Senior Planner Hannah Oden presented item #2A and #2B and included the following: Purpose Applicant's Request Key Considerations Background and History A. Applicant's Request: General Plan Amendment A. General Plan Amendment Criteria Analysis A. Addressing Lack of Commercial Supporting Population B. Applicant's Request; Rezoning Public Works Director Paul Keesler continued the presentation and included the following: Traffic Ms. Oden resumed the presentation and included the following: 1-6-21 Minutes, Oro Valley Town Council Regular Session 4  Public participation Summary and Recommendation Applicant James Kai provided an overview and background information regarding the proposed 1st Avenue and Tangerine Road General Plan Amendment and Rezoning for 13.44-Acres, located South of Tangerine Road and Approximately 1/4 mile East of 1st Avenue. Paul Oland, Owner of Paradigm Land Design and representing the applicant, provided an overview of the proposed project including several maps regarding the subject property and the following: Subject Market Position - Retail Subject Market Position - Multifamily Oro Valley & Dove Mt. Class A Apartments Rental Casitas Single Family Residential Conclusions Letters of Support    Mayor Winfield recessed the meeting at 7:54 p.m. Mayor Winfield reconvened the meeting at 8:05 p.m.    Mayor Winfield opened the public hearing. The following individuals spoke in support of items # 2A and #2B Oro Valley resident Bill Rodman Oro Valley resident Michael Garcia Oro Valley resident Andy Thomas Oro Valley resident D. Rob Burris Oro Valley resident David Blanchette Oro Valley resident Josh Dubs Oro Valley resident Thomas Ford President and CEO of the Oro Valley Chamber of Commerce and resident of Oro Valley Dave Perry Oro Valley resident Dox Cox Oro Valley resident Darren Hoffman Lorena Segun, representing La Hacienda Restaurant Mayor Winfield closed the public hearing. Discussion ensued amongst Council, staff and Mr. Oland regarding items #2A and #2B.    Motion by Councilmember Steve Solomon, seconded by Mayor Joseph C. Winfield to adopt Resolution No. (R)21-01, approving the Type 1 General Plan Amendment to change two Kai-Capri Special Area policies to allow R-6 multi-family residential zoning uses on the subject parcel located southeast of the 1st Avenue and Tangerine Road intersection, based on the finding that the request complies with the amendment criteria and the General Plan.    Discussion continued amongst Council, staff and Mr. Oland regarding the proposed General Plan Amendment.    Motion by Councilmember Steve Solomon, seconded by Mayor Joseph C. Winfield to adopt 1-6-21 Minutes, Oro Valley Town Council Regular Session 5   Motion by Councilmember Steve Solomon, seconded by Mayor Joseph C. Winfield to adopt Resolution No. (R)21-01, approving the Type 1 General Plan Amendment to change two Kai-Capri Special Area policies to allow R-6 multi-family residential zoning uses on the subject parcel located southeast of the 1st Avenue and Tangerine Road intersection, based on the finding that the request complies with the amendment criteria and the General Plan.  Vote: 3 - 4 Failed  OPPOSED: Vice-Mayor Melanie Barrett  Councilmember Tim Bohen  Councilmember Joyce Jones-Ivey  Councilmember Josh Nicolson    Item #2B failed as a result of the motion for item #2A failing.   3.RESOLUTION NO. (R)21-02 DISCUSSION AND AUTHORIZATION FOR THE TOWN MANAGER TO IMPLEMENT A ONE-TIME 3% PAY ADJUSTMENT TO ALL ELIGIBLE EMPLOYEES EFFECTIVE JANUARY 31, 2021, AND ADJUST THE SALARY RANGES IN THE GENERAL PAY PLAN AND THE POLICE STEP PAY PLAN BY 3%       Town Manager Mary Jacobs provided an overview of item #3. Discussion ensued amongst Council and staff regarding item #3.    Motion by Councilmember Harry Greene, seconded by Councilmember Steve Solomon to approve Resolution No. (R)21-02, authorizing the Town Manager to implement a one-time 3% pay adjustment to eligible employees effective January 31, 2021 and to adjust the salary ranges in the General Pay Plan and Police Step Pay Plan by 3%  Vote: 7 - 0 Carried   FUTURE AGENDA ITEMS    No future agenda items were requested.   EXECUTIVE SESSION - Regarding the property commonly known as the former Vistoso Golf Course, pursuant to A.R.S. section 38-431.03(A)(3), (4) and/or (7): 1) Discussion or consultation for legal advice with the Town attorney or attorneys, and/or; 2) Discussion or consultation with the Town attorney or attorneys in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, and/or; 3) Discussions or consultations with designated representatives of the Town in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property    This item was removed from the agenda.   RESUME REGULAR SESSION   4.DISCUSSION AND POSSIBLE ACTION TO INSTRUCT THE TOWN’S ATTORNEY(S) AND 1-6-21 Minutes, Oro Valley Town Council Regular Session 6  4.DISCUSSION AND POSSIBLE ACTION TO INSTRUCT THE TOWN’S ATTORNEY(S) AND REPRESENTATIVES REGARDING THE PROPERTY COMMONLY KNOWN AS THE FORMER VISTOSO GOLF COURSE    This item was removed from the agneda.   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the meeting at 10:10 p.m.  Vote: 7 - 0 Carried     __________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular and study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 6th day of January 2021. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2021. ___________________________ Michael Standish, CMC Town Clerk 1-6-21 Minutes, Oro Valley Town Council Regular Session 7     Town Council Regular Session B. Meeting Date:01/20/2021   Requested by: Jason Larter Submitted By:Catherine Hendrix, Police Department Department:Police Department SUBJECT: Resolution No. (R)21-03, 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: 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. On December 3, 2020, OVPD was provided notice awarding the funding for overtime and mileage. OVPD wishes to enter into a subgrantee agreement with AZDOHS to fund overtime and mileage for officers to be 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 FY 20/21 budget and will be requested in the FY 21/22 budget to accept this grant award for a total of $53,856. SUGGESTED MOTION: I MOVE to (APPROVE or DENY) Resolution No. (R)21-03, 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)21-03 Stonegarden Reallocation OT & Mileage Funds  Stonegarden Reallocation OT & Mileage Subrecipient Agreement  RESOLUTION NO. (R)21-03 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 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 $53,856 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: 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. 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. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 20th day of January, 2021. 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 -REALLOCATION 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 December 3, 2020 and shall terminate on July 31, 2021. 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 Session C. Meeting Date:01/20/2021   Requested by: Jason Larter Submitted By:Catherine Hendrix, Police Department Department:Police Department SUBJECT: Resolution No. (R)21-04, 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 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. On December 3, 2020, OVPD was provided notice awarding the funding for equipment. OVPD wishes to enter into a subgrantee agreement with AZDOHS to fund equipment to be purchased 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 FY 20/21 budget and will be requested in the FY 21/22 budget to accept this grant award for a total of $111,192. SUGGESTED MOTION: I MOVE to (APPROVE or DENY) Resolution No. (R)21-04, 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. Attachments (R)21-04 Stonegarden Reallocation Equipment Funds  Stonegarden Reallocation Equipment Subrecipient Agreement  C:\Windows\TEMP\BCL Technologies \easyPDF 7 \@BCL@1428772F\@BCL@1428772F.doc Town of Oro Valley Attorney’s Office/ca/012512 RESOLUTION NO. (R)21-04 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 $111,192 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 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 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 January, 2021. 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 -REALLOCATION OPERATION STONEGARDEN GRANT PROGRAM EQUIPMENT 18-AZDOHS-OPSG- (Enter Subrecipient Agreement number above (e.g., 180XXX-XX) Betw een 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 December 3, 2020 and shall terminate on July 31, 2021. 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 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 Session 1. Meeting Date:01/20/2021   Requested by: Vice Mayor Barrett and Councilmember Nicolson  Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING FUNDING OF THE PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM (PSPRS) POLICE PENSION LIABILITY THROUGH BONDS, CONTINGENCY RESERVES, OR OTHER MECHANISMS RECOMMENDATION: N/A EXECUTIVE SUMMARY: This item was requested by Vice Mayor Barrett and Councilmember Nicolson. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to... Attachments No file(s) attached.    Town Council Regular Session 2. Meeting Date:01/20/2021   Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: *IN ACCORDANCE WITH ORO VALLEY TOWN COUNCIL PARLIAMENTARY RULES AND PROCEDURES NUMBER 11.1 (B) & (C), RECONSIDERATION OF REGULAR SESSION AGENDA ITEM NUMBER 1 FROM THE ORO VALLEY TOWN COUNCIL MEETING DATED JANUARY 6, 2021: DISCUSSION AND POSSIBLE ACTION REGARDING THE PROPOSED 1ST AVENUE AND TANGERINE ROAD GENERAL PLAN AMENDMENT AND REZONING FOR 13.44-ACRES, LOCATED SOUTH OF TANGERINE ROAD AND APPROXIMATELY 1/4-MILE EAST OF 1ST AVENUE ITEM A. RESOLUTION NO. (R)21-01, TYPE 1 GENERAL PLAN AMENDMENT TO CHANGE TWO KAI-CAPRI SPECIAL AREA POLICIES TO ALLOW R-6 MULTI-FAMILY RESIDENTIAL DISTRICT ZONING USES ON A VACANT COMMERCIAL PARCEL (2001085) ITEM B. ORDINANCE NO. (O)21-01, REZONING TO CHANGE THE ZONING DESIGNATION OF A VACANT PARCEL FROM C-1 COMMERCIAL TO R-6 MULTI-FAMILY RESIDENTIAL (2001306) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: Councilmember Jones-Ivey and Councilmember Greene made a request to reconsider this item which originally failed at the January 6, 2021 Town Council regular meeting.  Per the Town Council Parliamentary Rules and Procedures, should the motion to reconsider be approved, this item will be added to the February 3, 2021 Town Council regular session agenda for discussion and possible action. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to Approve reconsideration of Regular Session Agenda item Number 1 from the Oro Valley Town Council meeting dated January 6, 2021 and continue this item to the ____________________ Town Council Regular Session. or I MOVE to Deny reconsideration of Regular Session Agenda item Number 1 from the Oro Valley Town Council meeting dated January 6, 2021. Attachments No file(s) attached.    Town Council Regular Session 1. Meeting Date:01/20/2021   Presentation regarding Open Meeting Law training Subject PRESENTATION OF OPEN MEETING LAW TRAINING Summary Attachments Presentation  Presented by Frank Cassidy, Esq. Arizona’s Open Meeting Law 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What is the open meeting law? Set of laws that were intended to: •Allow public access to the governmental process. •Open deliberations and proceedings to the public. •Prevent public bodies from making most decisions in secret. •State certain situations in which the government can meet and issue certain instruction. •Found at A.R.S. §38-431 through -431.09 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Who must comply? •“Public Bodies” –A.R.S. §38-431(6) •All councils, boards, commissions of the state or political subdivisions. •Multimember governing bodies of departments, agencies, institutions and instrumentalities of the state or political subdivisions. •Includes corporations or other instrumentalities whose boards of directors are appointed or elected by a state or political subdivision. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY The definition also includes… •Standing committees •Special committees •Advisory committees •Subcommittees –Of or appointed by the public body 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Advisory committees and subcommittees are defined as… •Any entity, however designated •Officially established –on motion or order of the public body –or by presiding officer of the public body •For purpose of making a recommendation concerning a decision to be made or a course of conduct to be taken by the public body 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Statutory Requirements •City/Town clerks must conspicuously post open meeting law materials prepared and approved by the Attorney General’s Office on their website. –Chapter 7 of the Arizona Agency Handbook –Revised 2018. •All persons elected or appointed to a public body must review the materials at least one day before taking office. •There may be other requirements elsewhere in law or in a public body’s governing documents (e.g., A.R.S. §48-803(H) for fire district.) 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Enforcement Authority •Arizona Attorney General’s Open Meeting Law Enforcement Team (OMLET) –Investigate complaints –Enforcement authority –Arizona Agency Handbook, Chapter 7 (Revised 2013) •Available online: www.azag.gov •County Attorney’s Office •The Courts 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Enforcement Authority •Only the Arizona Attorney General is authorized to sue an individual for open meeting law violations •The Arizona Attorney General, Pima County Attorney’s office, or anybody adversely affected by an OML violation can bring an enforcement action against the public body 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What must a Public Body do? •Provide notice •Have an agenda •Meet in public •Permit public to attend (and A.G. has, by opinion, approved virtual attendance during the COVID pandemic) –Exception: authorized executive sessions •Take action in public •Create/prepare meeting minutes or a recording. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What is a Meeting? •A.R.S. §38-431(4) •“Meeting” is a gathering, in person or through technological devices •Of a quorum of a public body –Discuss –Propose –Deliberate –Take legal action 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What is a Meeting? (cont’d) •A.R.S. §38-431(4)(b) includes: –“(i) A one-way electronic communication by one member of a public body that is sent to a quorum of the members of a public body and that proposes legal action.” –“(ii) An exchange of electronic communications among a quorum of the members of a body that involves a discussion, deliberation or the taking of legal action by the public body concerning a matter likely to come before the public body for action.” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What is a Quorum? Majority of the public body –A.R.S. §1-216(B) –(unless specific statutory provision specifies a different number) •If 7 members, a quorum = 4 •If 5 persons, a quorum = 3 •If 3 persons, a quorum = 2 •That includes vacant seats unless otherwise specified by law. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Telephone or “Virtual” Conferencing •Permitted by the open meeting law if the public body has complied with the agenda, notice, minutes, and other requirements of the OML for the telephone or virtual conference •Board members and public must be able to hear •Provide information in minutes 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY The “Initial” Notice (aka disclosure statement) •A.R.S. §38-432.02 •Tells public where individual meeting notices will be posted (must include both physical and electronic locations). •Must be posted on public body’s website –Cities and Towns may use association of cities and towns website. –Special districts may file it with the County Clerk. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Notice of Meetings A.R.S. §38-431.02(C) Provided at least 24 hours in advance of meeting •To all members of the public body •To the general public •24 hours may include Saturdays IF the public has access to the physical posting location. May not include Sundays or other legal holidays prescribed under A.R.S. §1-301. Exceptions: •Recess and resume •Actual emergencies 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Contents of Notice •The name of the public body •Date, time and place •Address and room number •Details of telephone and/or virtual access, if applicable •Must include an agenda OR inform the public how to obtain a copy of the agenda. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Posting the Notice •Must be posted in all locations identified in the initial notice (disclosure statement). This must be a location where the public has access. •Must post it on website (see exception for special districts). •Must give additional notice that is reasonable and practicable. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY A few tips on posting notices: •Make sure it can’t be removed •Make sure front and back can be read •Document when the notice/agenda was posted –Need a regular, routine business practice –Clerk marks time of posting with initials –Date and time-stamp the exact time of posting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Recess and Resume A public body may recess and resume a properly noticed meeting to a later time or date by making an announcement at the meeting what agenda items will be covered. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Emergency Meetings A.R.S. §38-431(D) and Agency Handbook section 7.7.9 •In case of “actual emergency,” law permits the board to meet (including in executive session), discuss and decide matters with less than 24 hours notice. •What constitutes an “actual emergency”? –Due to unforeseen circumstances, immediate board action is necessary to avoid a serious consequence that would result from waiting until proper notice could be provided. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Emergency Meeting Requirements •Aside from the 24 hour notice requirement, all Open Meeting Law requirements still apply •Provide notice as soon as possible •Announce in public the reasons necessitating emergency action •Include reasons in the meeting minutes •Post a notice stating the emergency session occurred and providing the information required on a normal agenda within 24 hours after the meeting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Social Events & Seminars •Government may post a “courtesy agenda” announcing the event and explain that a quorum might be present. •Identify date, time and purpose (location details will vary depending on the event) •State that no business of the public body will be discussed and no legal action will be proposed or taken. •Members must be scrupulous to avoid improper discussion 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY The Agenda A.R.S. §38-431.02(H) •Must list the specific matters to be: –discussed, –considered, or –decided •Must include information reasonably necessary to inform the public •All discussion must be reasonably related to an adequately described agenda item. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Common Agenda Problems •Using language a regular person would not understand –Legalese –Acronyms (without first spelling it out) –Agency slang •Using general categories without details –“New Business” –“Old Business” –“Personnel” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Current Events A.R.S. §38-431.02(K) •Chief administrator, presiding officer or a member of a public body may present a brief summary of current events without listing in the agenda the specific matters to be summarized •Provided that –This is an agenda item and –The public body does not propose, discuss, deliberate or take legal action. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY If it’s not on or reasonably related to the agenda… •You should not discuss it! •New items must wait for a future meeting. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Meeting Location Pitfalls •Inaccessible –A board member’s house •Inaudible •Not enough room •Unreasonable times (very subjective) 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Public’s Rights •Attend •Listen •Tape record •Videotape 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Public has NO right to: •Speak •Disrupt Practical pointer: Make a good record of warnings! 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Calls to the Public A.R.S. §38-431.01(H) •Optional (unless required by other laws) •Time, manner, place restrictions –Can limit time (egg timer) –Ban repetition •May require speakers on the same side with no comments new comments to select spokesperson –Prohibit disruptive behavior –Town has unique restriction on discussing agenda items during a call to the public. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Common Pitfalls of Calls to the Public •If it’s not an agenda item, public body’s response is limited to: –Direct staff to study the matter –Ask that a matter be placed on a future agenda –Response to criticism NOTE: These three responses must take place at the conclusion of the call to the public. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Meeting Etiquette •Asking for trouble: –Passing notes, texting, emailing (even it it’s about when to order lunch) –Whispering to fellow board members –Quorum talking with individuals before the meeting officially starts or after the meeting officially ends –Individual Council member casually chatting with an applicant in the meeting room just prior to a meeting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Executive Sessions •Public excluded •Only permitted for specific matters –A.R.S. §38-431.03(A)(1) through (9) •Must include possibility of executive session in the meeting notice and agenda •Discussion is confidential •Limited instruction permitted •Must have minutes or recording. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Executive Session Notice/Agenda •Notice must include the statutory section authorizing the executive session •Agenda must provide a general description of the matters to be discussed or considered –Needs to be more than a statutory citation –Should not contain information that would: •Defeat the purpose of the executive session •Compromise the legitimate privacy interests of a public officer, appointee, or employee •Compromise the attorney-client privilege 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Who may attend Executive Sessions A.R.S. §38-431(2) •Members of the public body •Attorney, if the ES is for legal advice •Persons subject to a personnel discussion, if invited by the public body •Individuals whose presence is reasonably necessary in order for the public body to carry out its executive session responsibilities, if invited by the public body –Example: Clerk to take minutes/run tape 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Executive Session Pitfalls •Inappropriate disclosure –What happens in executive session stays in executive session! –Chair (or attorney) must remind members about the confidentiality requirement every time •A.R.S. §38-431.03(C) •Taking legal action. –All votes must take place in public 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Personnel Matters •May discuss and consider employment, assignment, appointment, promotion, demotion, dismissal, salaries, discipline or resignation. •Regarding an officer, appointee or employee 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY More considerations regarding Personnel Matters •If the matter is noticed for a possible executive session, separate written notice to the officer, appointee or employee at least 24 hours before the meeting. •The employee may require that the meeting be held in public (does not include individual salary discussions). •The employee does not have the right, but may be permitted by the body, to attend executive session. (Regardless, the employee has access to portion of executive session meeting minutes.) 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Common Questions Q: May personnel evaluations be conducted in executive session? A: Yes. See Ariz. Attorney General Opinion 196-012 _______ Q: May an applicant be interviewed in executive session? A: Yes, if the position is one appointed by the government. See Ariz. Attorney General Opinion 183-050. NOTE: Must formally vote for the appointment in public session. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Confidential Information •Discussion or consideration of records exempt by law from public inspection. •Can receive and discuss information and testimony that state or federal law requires to be maintained as confidential. •Discussion may occur in open session when confidential information is adequately safeguarded (i.e., use an initial for a medical patient). 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Legal Advice •Discussion or consultation for legal advice with attorneys for the public body. •Communication between lawyer and client. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Other Possible Reasons for Executive Session •Discuss and consult with attorneys to consider litigation, contract negotiations, and settlement. Can instruct attorney regarding public body’s position. •Discussion or consultations with designated representatives regarding negotiations for the purchase, sale or lease of real property. Can instruct representatives about public body’s position. •Discussion or consultation with designated representatives regarding negotiation with employee organizations about salary. Can instruct representatives regarding public body’s position. •International, Interstate, and Tribal negotiations. •[NEW] Discussion or consideration of matters relating to school safety operations or school safety plans or programs. •[NEW} Discussions or consultations with designated representatives of the public body in order to discuss security plans, procedures, assessments, measures or systems relating to, or having an impact on the security or safety of buildings, facilities, operations, critical infrastructure information and information technology maintained by the public body. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Minutes A.R.S. §38-431.01(B) •Minutes OR recording required –Tape recordings, if created or used to transcribe minutes, must be retained for at least three (3) months “[a]fter date of meeting and after minutes transcribed or summarized and approved.” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Content of Public Meeting Minutes A.R.S. §38-431.01(B) •Date, time and place of meeting •Members present and absent •General description of all matters considered •Accurate description of “all legal actions proposed, discussed or taken: •A record of how each member voted •Names of members who propose each motion •Names of persons, as given, making statements or presenting material to the public body; and •A reference to the legal action about which they made statements or presented material. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Access to Public Meeting Minutes •Minutes or a recording shall be open to public inspection 3 working days after the meeting. •NOT AFTER APPROVAL 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Meeting Minutes: cities and towns •A.R.S. §38-431.01(E) •Cities and towns with population of more than 2,500 shall: –Post legal actions taken or any recording on its website within three (3) working days –Post approved meeting minutes from city or town council meetings on its website within two (2) working days following approval. •Posting must remain on website for one year 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Subcommittees and Advisory Committees •ARS §§38-431(6), 38-431.01(B) and (E)(3) •Subcommittees and advisory committees must: –Take written minutes or record all meetings, including executive sessions. –Within 10 working days of the meeting, subcommittee or advisory committee of a city or town with a population of 2,500 or more must: •Post a statement describing any legal action or •Post any recording of a public meeting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Executive Session Meeting Minutes •Shall have written minutes or a recording –Burden of proof –Fisher case (“plaintiff, who is challenging an executive session under the Open Meeting Law, has filed a complaint [in court] alleging facts from which a reasonable inference may be drawn supporting an Open Meeting Law violation, the burden shifts to the defendant to prove that an affirmative defense or exemption should permit a closed door executive session.”) •Shall include the following: –Date, time and place of meeting –Members present and absent –General description of matters considered –An accurate description of all instructions given –Such other matters as deemed appropriate by the public body •Shall be kept confidential (A.R.S. §38-431.03(B)) 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Access to Executive Session Meeting Minutes •Meeting minutes of executive session shall only be released to: –Members of the public body –Officers, appointees, or employees who were the subject of discussion or consideration (only that portion) –Auditor general in connection with an audit –County attorney or attorney general upon an investigation 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Circumvention •Cannot use any device to circumvent the law. •“Splintering the quorum”: –Serial communications (verbal, written, electronic, etc.) •Meeting with individual members and then reporting what others said with enough to constitute a quorum –Polling the members 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Non-verbal Serial Communications •Letters –series of letters from one member to the next would violate Open Meeting Law •E-Mail –occurring at different times can under some circumstances constitute a “meeting” in violation of Open Meeting Law –Simultaneity is not required for there to be a “meeting” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Attorney General Opinion 105-004: Email •Board members cannot use email to circumvent the Open Meeting Law •Cannot use email among a quorum to: –Propose legal action –Discuss legal action –Deliberate on legal action –Take legal action Electronic Communications •Electronic communications are treated the same as any other form of communication between board members. •Electronic communications exchanged among a quorum of the Board that involve discussion, deliberations, or taking legal action on matters that may come before the Board constitute a meeting and thus, violate the Open Meeting Law. 53 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY For example: •You have a 5-member board •One member sends a email to 2 other members and there is a response shared among all 3 •You now have a discussion among three members (a quorum) •Violation! 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Facts vs. Opinion? •There is no distinction between discussing facts vs. discussing opinions among a quorum •Deliberation = “collective acquisition and exchange of facts preliminary to a final decision” •Therefore, 2-way discussion of facts (among quorum) regarding potential board business = violation 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Council members might consider: •a statement on the internal email that provides: •“To ensure compliance with the Open Meeting Law, recipients of this message should not forward it to other members of the Council. Members of the Council may reply to this message, but they should not send a copy of their reply to other members.” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Staff Email •Staff may send e-mail to council members –Best practice: BCC council members •Passive receipt of information from staff, without more, does not violate the open meeting law. –Example: Council packets 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Prohibited 1-Way Communication •A single board member may violate the OML if they propose legal action among a quorum outside a properly noticed meeting •“Propose” means “to put forward for consideration, discussion, or adoption.” •It only takes 1 person to propose legal action •CANNOT propose legal actions outside of a noticed meeting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Proposing an Agenda item? •Proposing an item for the agenda does not propose legal action •“without more” •Be cautions: –Communicate the TOPIC only –Do NOT communicate the legal action you want the Board to take 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY “Propose” examples: •“We should discuss safety at First and Main.” –(does NOT propose legal action) •“We should install a crosswalk at First and Main.” –(DOES propose legal action) –It’s more than the topic for the agenda because it urges or suggests an outcome. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY More examples: “I think we should consider firing Joe Blow at our next meeting.” -vs- “I would like to discuss Joe Blow’s performance at our next meeting.” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Staff & Other Persons •Cannot knowingly direct staff to communicate in violation of the open meeting law. A.R.S. §38-431.01(l) •Sanctions may be imposed upon any person who knowingly aids, agrees to aid or attempts to aid another person in violating this article. A.R.S. §38- 431.07(A). 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Communications with the Public •Members may express opinions and discuss issues with the public at a venue other than a public meeting, personally, through the media or other public broadcast, so long as it is not intended to circumvent the open meeting law. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What does that mean? •Discussion or opinion must not be principally directed at or directly given to other council members •There is no plan to engage in collective deliberation to take legal action •Speaking at a public forum or to the media about upcoming actions is not an OML violation –A.R.S. §38-431.09(B) –Attorney General Opinion I07-013 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY When in Doubt… •RESOLVE ALL DOUBTS IN FAVOR OF OPENNESS! A.R.S. §38-431.09. •Legal action taken during a meeting in violation of any provision of the open meeting law may be null and void unless ratified. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY What to do when you learn that a potential open meeting law violation has occurred. •If in the thick of things = Recess/Assess •Can you resolve the issue and continue? •Does the particular open meeting law violation taint your whole meeting? –No—only the specific item. AG Opinion I08-001. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY After the meeting… •Determine if you need to ratify any actions •Provide refresher training to staff involved •If you receive a complaint: Be candid, respond promptly •Provide materials that help you: Minutes, ratification materials, videotapes, etc. 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Ratification –A.R.S. §38-431.05 •Within 30 days after discovery of the violation or when it should have been discovered with reasonable diligence –Tanque Verde Unified School Dist. V. Bernini, 206 Ariz. 200, 76 P.3d 874 (App. 2003) (30 days after court ruling OK) 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Ratification continued… •Notice 72 hours before the meeting. Includes: •Description of action to be ratified –Clear statement that the body proposes to ratify a prior action –Information on how to obtain detailed written description of the action •Written description must also be available 72 hours in advance. Must include: –Action to be ratified –All of the preceding deliberations, consultations and decisions that preceded and re related to the action –Must be included in minutes of ratification meeting 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Penalties –A.R.S. §38-431.07(A) •Individual members who violate and any persons who aid, attempt, or agree to aid –must be “knowingly” –Civil penalty (paid by individual) up to $500 second violation. –Up to $2,500 penalty for third violation onward. –Such equitable relief as the court deems appropriate –Reasonable attorney fees •Public body may not pay or reimburse for penalty imposed on individual. •Only AG can commence suit against individual. •If person who is otherwise liable “objected to the action of the public body and the objection is noted on a public record, the court may choose not to impose civil penalty on that person.” 60 YEARS SERVING OUR CLIENTS ANDOUR COMMUNITY Penalties –A.R.S. §38-431.07(A) •If “knowingly” violated “with the intent to deprive the public of information”, –Court may remove public officer from office and –May charge officer and any person that aided, agreed to aid, or attempted to aid, all the costs and attorney fees. Questions? 27x7321.02