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HomeMy WebLinkAboutPackets - Council Packets (1570) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION JULY 21, 1999 ORO VALLEY COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER ROLL CALL EXECUTIVE SESSION AT OR AFTER 6:00 PM 1. Pursuant to ARS 38-431.03 (A)(3) Legal Advice regarding Endangered Species Act. 2. Pursuant to ARS 38-431.03(A)(3) Legal Advice relating to Tortolita v. Town of Oro Valley Cause no. 328365/1-CA-CV 00-0022 and related matters. RESUME REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS — TOWN MANAGER 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 CALL TO AUDIENCE - According to the Arizona Open Meeting Law, the Town Council may only discuss matters listed on the Town Council Agenda. Matters brought up by the public under "Call to Audience" cannot be discussed by the Town Council as they have not been placed on the agenda. Any items must be addressed to the whole Council, not a specific member. In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. 7/21/99 Agenda, Council Regular Session 2 1. CONSENT AGENDA (Consideration and/or possible action) A. Minutes, 7/07/99 B. Resolution No. (R)99- 76, Consideration and Approval of a Financial Participation Agreement with the Greater Tucson Economic Council C. Resolution No. (R)99- 77, Consideration and Approval of a Financial Participation Agreement with the Metropolitan Tucson Convention and Visitors Bureau D. Resolution No. (R)99- 78, Award of Contract for Project No. 98-99 12, Oracle/ Linda Vista Roads Traffic Signal Installation, Median Adjustments, and Roadway Widening 2. ECONOMIC DEVELOPMENT ADMINISTRATOR'S APRIL-JUNE 1999 QUARTERLY UPDATE TO THE MAYOR AND COUNCIL 3. OV12-97-18B CARL'S JR. PUBLIC ART PROPOSAL (CONTINUED FROM 07-07-99) 4. OV12-99-06 CHURCH OF THE APOSTLES DEVELOPMENT PLAN (PROPERTY LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD (CONTINUED FROM 07-07-99) 5. 0V12-99-06 CHURCH OF THE APOSTLES LANDSCAPE PLAN (PROPERTY LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD (CONTINUED FROM 07-07-99) 6. PUBLIC HEARING-RESOLUTION NO. (R)99-79 A RESOLUTION OF THE TOWN OF ORO VALLEY, PIMA COUNTY, ARIZONA, INCREASING WATER RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY 7. RESOLUTION NO. (R)99- 80, PROVIDING NOTICE OF INTENT TO INCREASE SERVICE FEES AND CHARGES FOR THE TOWN OF ORO VALLEY WATER UTILITY 8. APPROVAL OF ENVIRONMENTALLY SENSITIVE LANDS ORDINANCE TECHNICAL ADVISORY COMMITTEE, PUBLIC ADVISORY COMMITTEE AND TOWN COUNCIL LIAISON 9. RESOLUTION NO. (R)99-81 - PROPOSED INTERGOVERNMENTAL AGREEMENT WITH PIMA COUNTY FOR LIBRARY BOND PROCEEDS TO DEVELOP THE ORO VALLEY PUBLIC LIBRARY 7/21/99 Agenda, Council Regular Session 3 10. APPROVAL OF THE REQUEST FOR PROPOSAL FOR ARCHITECTURAL SERVICES FOR THE ORO VALLEY LIBRARY TOWN MANAGER'S/COMMUNITY DEVELOPMENT DIRECTOR'S REPORT ENGINEER'S REPORT FINANCE DIRECTOR'S REPORT POLICE CHIEF'S REPORT WATER UTILITY DIRECTOR'S REPORT COUNCIL COMMITTEE REPORTS CALL TO AUDIENCE— According to the Arizona Open Meeting Law, the Town Council may only discuss matters listed on the Town Council Agenda. Matters brought up by the public under "Call to Audience"cannot be discussed by the Town Council, as they have not been placed on the agenda. Any items must be addressed to the whole Council, not a specific member. In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. ADJOURNMENT POSTED: 07/14/98 4:30 P.M. Ih Ap acket 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 8:30 a.m. — 5:00p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify Kathryn Cuvelier, Town Clerk, at 297-2591. 7/21/99 Agenda, Council Regular Session 4 INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Town Council during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Town Council on any item(s) on this agenda, please complete a speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Mayor announces the item(s) on the agenda which you are interested in addressing. 1. Please state your name and address for the record. 2. Speak only on the issue currently being discussed by Council. Please organize your speech, you will only be allowed to address the Council once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During "Call to Audience" you may address the Council on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. A MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION JULY 7, 1999 d/Al• ORO VALLEY COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER 7:07 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Paul Parisi, Council Member Fran LaSala, Council Member Wayne Bryant, Council Member EXCUSED: Dick Johnson, Vice Mayor PLEDGE OF ALLEGIANCE Mayor Loomis led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Town Manager Chuck Sweet reviewed the upcoming meetings. Water Utility Director David Hook and Town Engineer Bill Jansen updated the Council on the storm situation throughout the Town. Mayor Loomis thanked the Police Department, Public Works, and the Water Utility for their excellent response to the flooding, power outages, etc. caused by the storm. CALL TO AUDIENCE Barbara Smith, 13 600 N. Como Drive, stated that the Court of Appeals, Division I has ruled that the Town of Tortolita is still incorporated. She reminded Council that the actions for annexations, rezonings, etc. are illegal as Tortolita is a town and still exists. She stated that Oro Valley has no jurisdiction over this property (Church of the Apostles property located on Tangerine and La Cholla.) She stated that if the Council acts on the request by the property owners, they would be in flagrant disobedience of the laws of the State of Arizona. She urged the Council to postpone any actions on this request indefinitely or until all litigation is complete and a final decision is made by the Courts. She stated that to do anything else would leave the Town of Oro Valley in a position of serious financial exposure. 7/07/99 Minutes, Council Regular Session 2 Doug McVie, 4420 W. Cortaro Farms Road, spoke to the "alleged" annexation of properties in Tortolita. He stated that those members of Oro Valley Council that voted for the annexations, fall short of upholding the Constitution and Arizona State laws. Louis Benson, 2590 W. Tortolita Hills Trail, stated that the Council members who voted for the annexations in Tortolita should consider resigning. He said that he has a great respect for the Country and its laws and he had no idea why a neighboring entity would be so vile to another neighboring entity. Mr. Benson also stated that he considered the Town's actions towards his town as that of an enemy. He said that he hoped that the Oro Valley Police Department would stop patrolling in Tortolita as residents of the Town of Tortolita want the Pima County Sheriff's Department to take care of their cause. He also stated that he also had a Tortolita sign locked up by Oro Valley and he would be in to pick it up and he did not expect to get a date to appear in court for that. He stated that there was sign of Oro Valley's on the corner that would get violated or cited as it is illegally place in Tortolita's right-of-way and they would like it removed. Alan Lathrem, 1750 W. Tangerine Road, stated that the map that will delineate the critical habit for the pygmy owl goes up to La Cholla Boulevard. He stated that this means that all the large landowners that wanted to be in Oro Valley are not going to get the high density they expected and the financial projections of what the rezonings will bring to the Town are not going to occur. The land will remain in Tortolita with low density. He said that the Church of the Apostle was on tonight's agenda and he was not sure if the Council would act on it because of the critical habitat and the ruling from the Appellate Court, but they place Oro Valley's position in jeopardy. 1. CONSENT AGENDA At the request of Council Member Bryant, Mayor Loomis removed Item 0 from the Consent Agenda. MOTION: Council Member LaSala MOVED to approve the Consent Agenda without Item O. Council Member Parisi SECONDED the motion. Motion carried, 4—0. A. Minutes—5-19-99;6-2-99;6-3-99;6-5-99;6-10-99;6-14-99;6-16-99 B. Finance Report—May 1999 C. Building Codes Activity Report—May 1999 D. Police Report—May 1999 E Amendment of an existing contract with Pima Association of Governments for Professional Service of Inter jurisdictional Traffic Signal Coordination F. Resolution No. (R)99-65 Authorizing the Town to contract with Agra Infrastructure, Inc. to prepare a survey and base map for Lambert Lane from La Canada Drive to First Avenue G. Resolution No. (R)99-66 Authorizing the execution of an addendum to an existing intergovernmental agreement with the State of Arizona for maintenance of traffic signals 7/07/99 Minutes, Council Regular Session 3 H. Resolution No. (R)99-67 Approving an Intergovernmental Agreement between certain cities, towns, fire districts and departments in Pima County Arizona, and Pima County to allow for mutual aid and emergency response by the Hazardous Materials Team within participating jurisdictions of Pima County I. Resolution No. (R)99-68 Approving an Intergovernmental Agreement between the Town of Oro Valley, the County of Pima, the Town of Marana and the City of Tucson for exchange of services for Plans Review, Office Staff and Inspections J. Resolution No. (R)99-69 Approval of Amendment No. 1 to Contract No. 99-22561 GA between Oro Valley, the Metropolitan Domestic Water Improvement District and the Arizona Department of Water Resources for the Canada del Oro Recharge Feasibility Project K. Resolution No. (R)99-70 Approval of Southern Arizona Regional Water Management Study an Intergovernmental Agreement between the U. S. Department of Interior/Bureau of Reclamation, the Town of Oro Valley, the Town of Marana, the Metropolitan Domestic Water Improvement District and the Pima County Flood Control District L. Resolution No. (R)99-71 Authorizing the Town to contract with McGann & Associates for the design and engineering of the Lambert Lane multi- use path M. Approval of P & Z Commission Work Plan for FY 1999/2000 N. OV12-98-06 Substitute Assurance Agreement between the Erieside Construction Company and Lawyers Title of Arizona as trustee of Moonridge, Lotsl —48 0. Appointment of Russell Dillow as a magistrate pro-tempore for the Oro Valley Magistrate Court (PULLED FOR DISCUSSION) O. Appointment of Russell Dillow as a magistrate pro-tempore for the Oro Valley Magistrate Court In answer to a question from Council Member Bryant, Town Attorney Dan Dudley explained that the majority of fees collected by the Court go to the State Court System. Mayor Loomis referenced the second paragraph of the Council Communication and explained that if"conflict cases" come before the Oro Valley Magistrate Court, a Marana Magistrate Judge is used and the entire case is sent to the Marana Court. MOTION: Council Member Bryant MOVED to approve Item 0 on the Consent Agenda. Council Member Parisi SECONDED the motion. Motion carried, 4—0 . 7/07/99 Minutes, Council Regular Session 4 2. PRESENTATION OF CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING TO DAVID ANDREWS, FINANCE DIRECTOR Mayor Loomis presented Finance Director David Andrews the Certificate of Achievement for Excellence in Financial Reporting. The Certificate of Achievement was awarded by the Government Finance Officers' Association and is Mr. Andrews' fifth such award. Mayor Loomis moved Item 14 forward on the Agenda. 14. LETTER OF SUPPORT TO THE ARIZONA DELEGATION FOR THE CONTINUATION AND ENHANCEMENT OF THE LAND AND WATER CONSERVATION FUND Parks and Recreation Director Ainsley Reeder reported that the Parks and Recreation Advisory Board have recommended that the Town Council send letters to Senators Kyle, McCain, Pastor, and Kolb to solicit their support for the Land and Water Conservation Fund (LWCF.) She explained that the LWCF was established in 1965 to insure on a national level, that the citizens had access to quality outdoor recreation by creating national and community parks, forests, wildlife refuges, and open spaces. Ms. Reeder further explained that over a period of time, the percentage of revenues used for parks, recreation and open space has gotten smaller. Also, monies allocated in 1998 did not include state monies that would allow towns like Oro Valley to apply for matching funds for parks and recreation projects. Council Member Bryant stated that this would be a wonderful opportunity to help obtain grant monies to help enhance the Town's parks. MOTION: Council Member Bryant MOVED to approve a letter of support to the Arizona Delegation for the continuation and enhancement of the Land and Water Conservation Fund. Council Member LaSala SECONDED the motion. Motion carried, 4-0. Mayor Loomis recessed the meeting at 7:30 p.m. The meeting resumed at 7:35 p.m. 3. OV 12-97-18B CARL'S JR. PUBLIC ART PROPOSAL (CONTINUED FROM 6-2-99) Planning and Zoning Administrator Bryant Nodine reported that the resubmittal of the art proposal for Carl's Jr. was received late. Mr. Nodine recommended that Council continue consideration of the art proposal until the July 21St meeting. MOTION: Council Member LaSala MOVED to CONTINUE consideration of the Carl's Jr. Public Art Proposal until July 21, 1999. Council Member Bryant SECONDED the motion. Motion carried, 4—0. 7/07/99 Minutes, Council Regular Session 5 4. OV12-99-06 CHURCH OF THE APOSTLES DEVELOPMENT PLAN (PROPERTY LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD) (CONTINUED FROM 6-16-99) Town Attorney Dan Dudley recommended continuation of this agenda item to allow the opportunity to review the recent decision in the Tortolita/Oro Valley case. He explained that the Appellate Court has reversed and remanded the case back to the Superior Court for further determination. Council Member LaSala stated that when this development plan comes back to Council, he would like to see that mention of the school be removed from the Council Communication. He stated that the school should be considered only when the Church comes back to Council with a request for a Conditional Use Permit for the school. MOTION: Council Member LaSala MOVED to CONTINUE this item until such time that a review can be made of what the Courts are saying. Council Member Bryant SECONDED the motion. Motion carried, 4—0. 5. OV12-99-06 CHURCH OF THE APOSTLES LANDSCAPE PLAN (PROPERTY LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD) (CONTINUED FROM 6-16-99) MOTION: Council Member LaSala MOVED to CONTINUE this item until such time that a review can be made of what the Courts are saying. Council Member Bryant SECONDED the motion. Motion carried, 4—0. 6. ORO VALLEY RESOLUTIONS FOR THE LEAGUE OF ARIZONA CITIES AND TOWNS RESOLUTIONS PRE-CONFERENCE MEETING OF AUGUST 13, 1999 Planning and Zoning Administrator Bryant Nodine reported that the Town currently has a Save-a-Plant Program that allows plants that are not salvaged from a site to be donated to organizations that are willing to remove the plants. He explained that some of the organizations that have used the program are Homeowners' Associations and Pima County Parks who have used the plants to re-vegetate disturbed areas. Mr. Nodine explained that recently the Arizona Department of Agriculture has ruled that there would be a fee charged for the plants that are removed. He explained that this ruling countermands an earlier interpretation of the program as being a"no-fee" program. Mr. Nodine stated that if fees were charged, it would take away any incentive to salvage and re-vegetate areas within the Town and discourage salvage of native plants. He stated that staff is asking that Council submit a resolution to the League of Arizona Cities and Towns requesting a reinterpretation of the law to see if there is a possibility for issuance of"no-fee"permits to non-profit and educational organizations and groups. 7/07/99 Minutes, Council Regular Session 6 In answer to a question from Council Member LaSala, Mr. Nodine explained that if the plants are not re-vegetated, they are destroyed. Council Member Parisi suggested that since the fees are nominal, maybe the Town could cover the fees for the Save-a-Plant Program until the League of Arizona Cities and Towns can get the Resolution passed. Council Member LaSala suggested that maybe the Chamber and businesses might be willing to pick up the fees for the program until such time as the Resolution is passed. Karen Rogers, 7815 E. Star Mist, addressed the Council and explained that her Homeowners' Association, Catalina Shadows, participated in the Save-a-Plant Program. She explained that with the help of Melissa Shaw from Planning and Zoning, they organized a group to remove plants from a donor site (Amphitheater School site in Rancho Vistoso). Ms. Rogers further explained that they were notified by the Department of Agriculture that a fee would be charged to remove the plants even though they were a non-profit group. She explained that they raised enough money to remove 83 plants but what was left on the site would be enough to re-vegetate their entire common areas (which were graded by Pima County before annexation into Oro Valley.) Ms. Rogers asked Council to help by submitting a resolution to make the Save-a-Plant Program a no-fee program. In answer to a question from Council Member Bryant, Town Manager Chuck Sweet explained that the Mayor would be attending a meeting on August 13th where cities and towns will bring their proposed resolutions. The list of submitted resolutions will be brought to the League Conference in September to be voted on. A Municipal Policy Statement would then be formulated and delivered to the State's Legislative Representatives for their consideration in January, 2000. Mr. Sweet explained that it could be up to one year before final consideration is made. Mayor Loomis explained that they are working with the Department of Agriculture. He stated that he has sent them a letter regarding their interpretation and has also included copies to the Legislative Representatives and Senators. Mayor Loomis stated that hopefully the Department of Agriculture would re-evaluate their interpretation. Mayor Loomis stated that he would like to add additional wording to the resolution that asks for a reinterpretation by the Department of Agriculture and to add the wording "or develop new legislation to allow cities and towns to establish programs like the Save-a-Plant Program in the future." MOTION: Council Member LaSala MOVED to approve the proposed League of Arizona Cities and Towns resolution requesting a reinterpretation of the fee section of this law to allow for issuance of a"no-fee permit" to non-profit and educational groups and to include the Mayor's comments (add additional wording to the resolution that asks for a reinterpretation by the Department of Agriculture and to add the wording "or develop new legislation to allow cities and towns to establish programs like the Save-a- Plant Program in the future") and to direct staff, primarily the Economic Development 7/07/99 Minutes, Council Regular Session 7 staff to use their contacts and to coordinate the effort through Planning to see if there are any businesses or companies that would like to take part in donating funds to the program. Council Member Parisi SECONDED the motion. DISCUSSION: In answer to a question from Council Member Bryant, Karen Rogers stated that hundreds of plants are being lost in the interim. Council Member Bryant stated that he would like to amend the motion to use Town funds to subsidize the Save-a-Plant Program until further funding is found. This would help save plants for the parks, common areas, etc. At the request of Mayor Loomis, Mr. Nodine explained that the Native Plant Salvage Program in Oro Valley looks at significant salvageable plants on the sites with anything over two inches in caliper and all saguaros being inventoried. Those that are salvageable are either salvaged or replaced on a 1:1 ratio. He explained that the smaller plants and cacti are not salvaged and these are the plants that could be removed by the non-profit groups for replanting in common areas, etc. Mr. Nodine further explained that the new Native Plant Ordinance is looking at areas that could be preserved in place so some of the salvage of the smaller species could take place in the future. Mr. Nodine also stated that the Save-a-Plant Program now charges a"fee per plant" for removal of any plant. AMENDMENT TO THE MOTION: Council Member LaSala agreed to amend the motion by adding that Town funds can be used to subsidize the Save-a-Plant Program until further funding is found but only as a last resort. Council Member Parisi agreed to the amendment. MOTION as AMENDED carried, 4—0. 7. RESOLUTION NO. (R)99-72 PROVIDING NOTICE OF INTENT TO INCREASE SERVICE FEES AND CHARGES OF THE TOWN OF ORO VALLEY WATER UTILITY AND SETTING A PUBLIC HEARING DATE OF AUGUST 4, 1999 Water Utility Director David Hook reported that staff and the Water Utility Commission are recommending approval of Resolution No. (R)99-72 that would provide notice of intent to increase service fees and charges. MOTION: Council Member LaSala MOVED to approve Resolution (R)99-72, providing Notice of Intent to Increase Service Fees and Charges for the Town of Oro Valley Water Utility. He further moved that staff publish the Notice of Intention as required by ARS 9-511-01.A.2 so that a public hearing on the matter may be held on August 4, 1999. He further moved that staff make Exhibit "A"-Oro Valley Water Utility 1999 Service Fees and Charges Report available to the public as required by ARS 9- 511301.A.1. Council Member Bryant SECONDED the motion. Motion carried 4—0. 7/07/99 Minutes, Council Regular Session 8 8. PUBLIC HEARING—RESOLUTION NO. (R)99-73 ADOPTION OF THE FINAL BUDGET FOR FY 1999/2000 Finance Director David Andrews reported that the Town's Tentative Budget of 561,930,206 was adopted by Council on June 16, 1999. Resolution No. (R)99-73 would adopt the final budget for the same amount. Mr. Andrews also reported that the Facility Steering Committee has been meeting regarding the new Development Services Building and asked for additional improvements in the amount of$115,490. He explained that these items would be included in the General Fund's General Administration budget and would be non-recurring expenditures. Mayor Loomis opened the public hearing. Louis Benson, 2590 W. Tortolita Hills Trail, stated that Oro Valley's budget reflects a 59% increase over thep revious year's budget and it was shocking to him that there has been no public input on the issue of the budget. Mayor Loomis closed the public hearing. Council Member LaSala stated that many Study Sessions were held and public comments were received during those meetings. He stated that the budget was thoroughly studied and he was proud of the staff's and Council's effort. Council Member Bryant commended the Mayor for his diligence. He stated that staff did a wonderful job and he was impressed with the Town's budget process. He explained that he did have a problem with the fact that the citizens did not get to vote on the Municipal Property Corporation(MPC) Bonds. He stated that this was the only reason he would vote "no" on the approval of the budget. Council Member Parisis stated that the budget includes items brought forward by the Fraternal Order of Police (FOP) and he was proud that the officers and staff worked together on their proposals. Mayor Loomis stated that the MPC monies were identified and must be included as a line item and included in the budget planning process. He also thanked the Town staff, the FOP and the Council for their efforts and the many hours spent on the budget process. MOTION: Council Member LaSala MOVED to approve Resolution(R)99-73, adopting the Final Budget for Fiscal Year 1999-2000 as presented. Council Member Parisi SECONDED the motion. Motion carried, 3 — 1, with Council Member Bryant opposed. 7/07/99 Minutes, Council Regular Session 9 9. PUBLIC HEARING - ORDINANCE NO. (0) 99-41 ADOPTING AN AMENDMENT TO THE GENERAL PLAN BY ADDING THE "TRANSIT SERVICES ELEMENT" AS PREVIOUSLY DECLARED A PUBLIC RECORD BY RESOLUTION NO. (R)99-58 Transit Services Administrator John Zukas stated that on May 4th, the Planning and Zoning Commission recommended approval of the "Transit Services-Element of the General Plan." On June 2", the Town Council declared the "Transit Services-Element of the General Plan" as a public document. Greg Snyder, Parsons and Brinckerhoff, consultant on the project, reviewed the process for compiling the Transit Services Element and presented an overview of the Plan. He explained that the Transportation Committee reviewed and utilized a survey that was completed and returned by 1,687 of the Town's citizens regarding transit services. Mr. Snyder explained that there were four major Transit Service goals: • Incremently restructure the Town's existing transit services, to reduce costs and to reduce costs and improve productivity. • Develop a transportation system that facilitates public transit, bicycling, and walking as well as driving. • Undertake additional transit planning activities to establish a future more vigorous public transit system when additional funding becomes available. ■ Develop a public transportation system that allows all Town residents to conveniently travel between and within regional and local activity centers. Mayor Loomis opened the public hearing. Emily Anne Sleigh, 12417 N. Copper Queen Way, stated that public transportation in Tucson blocks one lane. She asked if there was any way to prevent the blocking of a lane of traffic. She also expressed her concerns regarding indigents congregating at the bus stops. Ms. Sleigh stated that most of Oro Valley residents are upper middle class and she wondered who would be riding the buses. She stated that Coyote Run was great for the elderly citizens, but she was concerned about riders for the public transportation system. Mayor Loomis closed the public hearing. Council Member LaSala stated if done propertly, public transportation does not have to block lanes of traffic. He stated that it was important to note that buses help protect air quality and the Town would definitely use alternate fueled buses. He stated that mass transportation makes sense as we look toward the future. MOTION: Council Member LaSala MOVED to adopt Ordinance (0)99-41 adopting the Transit Services-Element of the General Plan as an amendment to the Town of Oro Valley's General Plan. Council Member Bryant SECONDED the motion. Motion carried, 4—0. 7/07/99 Minutes, Council Regular Session 10 Mayor Loomis thanked Mr. Zukas, Mr. Snyder, the consultant and the Committee members. Mayor Loomis recessed the meeting at 8:35. The meeting resumed at 9:42 p.m. 10. RESOLUTION NO. (R)99-74 DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT KNOWN AS PROPOSED AMENDMENTS TO THE ORO VALLEY ZONING CODE REVISED, CHAPTER 2, SECTION 2-101, DEFINITIONS AND CHAPTER 14, ARTICLE 14-1, NATIVE PLANT PRESERVATION, SALVAGE AND MITIGATION PLAN REQUIREMENTS AND DECLARING AN EMERGENCY MOTION: Council Member Parisi MOVED to approve Resolution No. (R)99-74 making that document known as amendments to the Oro Valley Zoning Code Revised, Chapter 2, Section 2-101, Definitions, and Chapter 14, Article 14-1,Native Plant Preservation Salvage and Mitigation Plan Requirements a public record and declaring an emergency. Council Member LaSala SECONDED the motion. Motion carried, 4—0. 11. PUBLIC HEARING —ORDINANCE NO. (0)99-42 RELATING TO AMENDMENTS OF THE ORO VALLEY ZONING CODE REVISED, CHAPTER 2, SECTION 2-101 DEFINITIONS, AND CHAPTER 14, ARTICLE 14-1, NATIVE PLANT PRESERVATION, SALVAGE AND MITIGATION PLAN REQUIREMENTS Planning and Zoning Administrator Bryant Nodine reported that staff is recommending a continuation of Ordinance No. (0)99-42 until the August 4th Council meeting. Mayor Loomis opened the public hearing. Bill Adler, 10720 N. Eagle Eye Place, referenced the Council Communication, page 4, item 2, and noted that salvage plans are not routine and they deserve both the Council's and the Development Review Board's attention. He also noted (referring to page 4, item 1,) that incentives should not be included in the documents and are misguided and misworded. He stated that this should be reworded or eliminated. Mr. Adler stated that in-lieu fees are opposed by the public and should not be allowed. He also stated that punitive fines should be permitted. Emily Anne Sleigh, 12417 N. Copper Queen Way, stated that there are programs in place through the Arizona Department of Transportation (ADOT) that will help finance native plant salvage and beautification. She presented information to the Town Clerk for staff's review. Hector Conde, 14040 N. Lobelia, urged Council to continue the Ordinance as there were many things that needed to be clarified. 7/07/99 Minutes, Council Regular Session 11 Christina McVie, 4420 W. Cortaro Farms, asked for continuance of the Ordinance. She stated that the Town should get help from the Arizona Native Plant Society and the Department of Arizona Game and Fish and to participate in the Ironwood Alliance. She stated that there are many beautiful and unique areas in Oro Valley and offered her help. Mayor Loomis closed the public hearing. MOTION: Council Member Bryant MOVED to CONTINUE Ordinance No. (0)99-42 until the August 4, 1999 Council meeting and to include the concerns Mr. Adler referred to on page 4, to be rewritten, reversed. Council Member LaSala SECONDED the motion. DISCUSSION: Council Member Parisi stated that he agreed with much of what Mr. Adler said, but changes that were made in 1998 were not made haphazardly. He explained that there were committee meetings, with input from the Development Review Board, the Planning and Zoning Commission and citizens. He stated that somewhere a decision needs to be made and changes could be made as necessary. He stated that he wants to make his decision on what is best for the entire community. AMENDMENTS TO THE MOTION: Council Member LaSala stated that he would like to amend the motion to not necessarily change the language as it is now but to continue the item and to direct staff to present the minutes of the meetings and to provide them to Council so they will know what led to the language that Mr. Adler takes exception to. Council Member Bryant agreed to the amendment. Mayor Loomis asked to include direction to staff to also bring back alternate wording or a review and concurrence to comments that have been made by the public so Council can go through them when it comes back as a public hearing. Council Members Bryant and LaSala agreed to the amendment. Council Member Parisi suggested that the item be continued for 30 days to study and review the ordinance. MOTION RESTATED BY MAYOR LOOMIS: Continue this item to permit a 30 day public review period and to direct staff to provide to the Council the documentation supporting the changes that have been made to the Native Plant list previously and also to direct staff to bring back alternate wording for possible changes that include the comments from Mr. Adler and Mr. Conde. MOTION as AMENDED carried, 4—0. 7/07/99 Minutes, Council Regular Session 12 12. PUBLIC HEARING—ORDINANCE NO. (0)99-43 PROPOSED AMENDMENTS TO THE ORO VALLEY ZONING CODE REVISED (OVZCR) CHAPTER 12, SIGNS AND CHAPTER 13, GENERAL PROVISIONS RELATING TO FLAGS Planning and Zoning Administrator Bryant Nodine reviewed the Council Communication and explained that some areas of the Zoning Code regarding flags need to be clarified. He reviewed Exhibit"A", Proposed Amendments. Mr. Nodine noted that items as referenced relate to the old Code and section numbers have been changed with the new Code. In answer to a question from Council Member LaSala, Mr. Nodine explained that the commercial flags would not be considered as part of their total sign package. Mayor Loomis opened the public hearing. Bill Adler, 10720 N. Eagle Eye Place, stated that flags should be used for "attention getting" during grand openings and only for a limited time. He stated that it is difficult to control their quality and appearance and caused an enforcement problem. Mayor Loomis closed the public hearing. Council Member Parisi stated that there was a need for some of restriction on flags, but discretion should be made when citing certain flags. MOTION: Council Member LaSala MOVED to approve Ordinance (0)99-43, amendments to Chapter 12, Signs and Chapter 13, General Provisions of the Oro Valley Zoning Code Revised relating to flags with the addition that commercial flags be flown only during grand openings for a time determined by the Planning and Zoning Administrator with corrected paragraph numbers as noted by Planning and Zoning Administrator. Council Member Parisi SECONDED the motion. DISCUSSION followed regarding the legality of granting grandfather rights on existing commercial flags, square footage being a part of the total signage allotment and the size of flags. MOTION failed, 2 —2 with Mayor Loomis and Council Member Parisi opposed. MOTION: Council Member Parisi MOVED to approve Ordinance (0)99-43 amendments to Chapter 12, Signs and Chapter 13, General Provisions of the Oro Valley Zoning Code Revised relating to flags. Mayor Loomis SECONDED the motion. Motion failed, 2 —2 with Council Member LaSala and Council Member Bryant opposed. MOTION: Council Member LaSala MOVED to CONTINUE Ordinance (0)99-43 to a future Study Session. Council Member Parisi SECONDED the motion. Motion carried, 4 —0. 7/07/99 Minutes, Council Regular Session 13 13. RESOLUTION NO. (R)99-75 ORDERING THE RELEASE OF ALL ASSESSMENTS WITHIN ORO VALLEY WATER IMPROVEMENT DISTRICT NO. 1, DISSOLVING ORO VALLEY WATER IMPROVEMENT DISTRICT NO. 1 AND DECLARING AN EMERGENCY MOTION: Council Member LaSala MOVED to adopt Resolution No. (R)99-75, ordering the release of all assessments within Oro Valley Water Improvement District No. 1, dissolving Oro Valley Water Improvement District No. 1 and declaring an emergency. Council Member Parisi SECONDED the motion. Motion carried, 4—0. TOWN MANAGER'S/COMMUNITY DEVELOPMENT DIRECTOR'S REPORT Town Manager Chuck Sweet reported that Brent Sinclair, the new Community Development Director, would begin working with the Town on July 19th. PLANNING DIRECTOR'S REPORT Planning and Zoning Administrator Bryant Nodine reported that the Holiday Inn Express has been issued its grading permit and work on the project would begin soon. TOWN ENGINEER'S REPORT No report. FINANCE DIRECTOR'S REPORT Finance Director David Andrews stated that field work for the Town's financial audit will begin on August 30th with the results going to the Budget and Bond Committee in October and onto Council in late November. POLICE CHIEF'S REPORT Lieutenant Larry Stevens announced that the Police Department received its Mobile Command Post. He explained that the unit is still being "outfitted" but was used tonight (July 7th) during the rain storm and flooding. WATER UTILITY DIRECTOR'S REPORT Water Utility Director David Hook reported that the OV#1 District transition of management and operations has been completed. The Oro Valley Water Utility is now serving those customers. He also commended his staff and the staff of Metro Water Improvement District for their efforts. Mr. Hook also reported that the Water Utility Commission is studying alternate renewable water resources for golf courses and will bring their recommendations back to Council in the near future. 7/07/99 Minutes, Council Regular Session 14 COUNCIL COMMITTEE REPORTS Council Member LaSala commended staff on the July 4th celebration. He stated that all the citizens seemed to appreciate the efforts. CALL TO AUDIENCE No speakers. ADJOURNMENT MOTION: Council Member LaSala MOVED to adjourn at 10:00 p.m. Council Member Bryant SECONDED the motion. Motion carried, 4—0. Respectfully submitted, tf Roxana Garrity, Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 7day of July , 1999. I further certify that the meeting was duly called and held and that a quorum was present. Dated this day of , 1999. Kathryn E. Cuvelier, CMC TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: 07/21/99 TO: HONORABLE MAYOR& COUNCIL FROM: Jeffrey H. Weir, Economic Development Administrator SUBJECT: Resolution No. (R) 99 -76 Consideration and Approval of a Financial Participation Agreement with the Greater Tucson Economic Council. SUMMARY: At the May 10 Budget Study Session, the Town Council discussed a Financial Participation Agreement(FPA) with the Greater Tucson economic Council (GTEC). Based on the discussions from the May 10 meeting a FPA with GTEC for the 1999/2000 Fiscal Year in the form of Resolution No. (R) 99 -76 is attached. ATTACHMENTS: 1. Resolution No. (R) 99 - 76 Financial Participation Agreement with the Greater Tucson Economic Council, and 2. GTEC Presentation to the Town of Oro Valley Town Council, and 3. GTEC 1997-1998 Annual Report, and 4. GTEC Progress Tucson newsletter of June 1999, and 3. GTEC Community Data Publication. FISCAL IMPACT: Funding for the July 1, 1999 through June 30, 2000 FPA with GTEC is $ 20,000. RECOMMENDATION: Staff recommends approval of the Financial Participation Agreement with GTEC. SUGGESTED MOTION: I move to approve Resolution No. (R) 99 - 76 executing a Financial Participation Agreement between the Town of Oro Valley and the Greater Tucson Economic Council. Je •y ' . eir, CED Economic Development Administrator David L. Andrews Finance Director Chuck Sweet Town Manager Resolution No. (R) 99 - 76 TOWN OF ORO VALLEY FINANCIAL PARTICIPATION AGREEMENT GREATER TUCSON ECONOMIC COUNCIL THIS AGREEMENT, made and entered into this day of , 1999, by and between the Town of Oro Valley, a municipal corporation, hereinafter called the "Town" and the Greater Tucson Economic Council, hereinafter called "GTEC". WITNESSETH WHEREAS, it has been determined that the activities of GTEC are in the public interest, and are such as to improve and promote the public welfare of the Town; and WHEREAS, the Mayor and Council have determined that to financially participate in the promotion of the activities of GTEC is a public purpose in that the activities confer direct benefit of a general character to a significant part of the public; NOW THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth, the parties hereto do mutually agree as follows: Section 1: Statement of Purpose GTEC shall fund and oversee the implementation of an economic development strategy to ensure the vitality of Pima County including the Town of Oro Valley by complimenting the community's economic development resources. Section 2: Services To Be Performed By GTEC 1. GTEC, in cooperation with other groups, organizations, agencies, departments and individuals involved in economic development activities, shall coordinate and facilitate the development of a comprehensive and balanced economic development strategy for the Tucson Metropolitan area including the Town of Oro Valley. 2. GTEC through the direction of its Board of Directors and Executive Committee shall oversee the implementation of the strategy primarily through its Program of Work as outlined in Exhibit A and attached hereto. 3. A specific focus of GTEC shall be to locate new, expanding or relocating firms and to promote job development within the town limits of Oro Valley. GTEC, in cooperation with the Town's Economic Development Administrator agrees to work with the town in its recruitment efforts for those relevant industries that are identified in the Town's General Plan and Community Economic Development Strategy. Further, GTEC agrees to provide the Town with continuous feedback in evaluating its ongoing recruitment efforts and to notify the ED Administrator concerning prospects demonstrating a specific interest in an Oro Valley site(s) or prospect visits to such site(s) for Town involvement. 4. GTEC agrees to work with the Town in establishing links between GTEC and the Town for their respective Internet WebPages. 5. GTEC agrees to provide information regarding the Town to business prospects in its CD ROM presentations. 6. Distribute Town of Oro Valley promotional material and industrial site information to all leads and prospects targeted in the Town's Community Economic Development Strategy. 7. Include information on the town in GTEC marketing publications, such as Tucson, Arizona: A Sound Business Decision. 8. Include the town industrial properties in the GTEC real estate database. 9. Support Town business retention efforts within Oro Valley/Greater Tucson Strategic Partnership for Economic Development (GTSPED) targeted industries. 10. Provide quarterly reports to the Town ED Administrator on the progress of: A. Promotion of job development within the town limits of Oro Valley including: • A generic listing description of prospects developed demonstrating a specific interest in Oro Valley sites (i.e., type of industry, number of jobs, etc). • A generic listing of prospect visits to sites in the Town. B. Inform the Town ED Administrator of GTEC visits to local industries to facilitate mutual participation in expansion/retention efforts in Oro Valley. • A generic listing/description of retention visits made to local industries and other information concerning expansion retention activities in Oro Valley. Section 3: Services To Be Provided By The Town Provide GTEC with a sum of money not to exceed Twenty Thousand Dollars ($20,000). Section 4: Evaluation Criteria And Reporting: a) GTEC agrees to submit to the Town, through the Economic Development Administrator, reports addressing the progress of GTEC in achieving its Program of Work. Reports shall be submitted within fifteen (15) working days of the end of each calendar quarter. 2 b) GTEC agrees to review and present such reports to the Town Council in open meetings on an as requested basis. Section 5: Method Of Payment The amount allocated hereunder (Section 3) shall be paid to GTEC for services rendered in four installments, to be paid on October 10, January 10, April 10 and July 22 upon receipt of a written request signed by an authorized representative of GTEC. The Town may withhold whole or part of the scheduled payment as may be necessary because: 1. Services were not rendered. 2. GTEC failed to supply information or reports as required. 3. GTEC is not in compliance with agreed upon disbursement documentation and/or other project performance. When the reasons for withholding payments have been corrected to the satisfaction of the Town, any amounts due shall be processed. The Town will be reimbursed for any funds expended for services not rendered. Section 6: Responsibility For Open Records GTEC agrees to make open to the public all records relating to any funds directly received from the Town that GTEC distributes to other organizations or individuals. Section 7: Accountability GTEC shall maintain a true and accurate accounting system which meets generally accepted accounting principles, and which is capable of properly accounting for all expenditures and receipts of GTEC on a timely basis. GTEC's accounting system shall permit separate, identifiable accounting for all funds to be provided by the Town pursuant to this Agreement. GTEC shall provide the Finance Department of the Town, within four months after the close of GTEC's fiscal year, a copy of the financial audit of GTEC's operations by an independent certified public accountant, along with any management letter, and, if applicable, GTEC's plan for corrective action. If GTEC does not have an audit, it may submit within three months after the close of its fiscal year, a complete accounting of Town funds received. This accounting must be approved by the Finance Department of the Town as sufficiently descriptive and complete. 3 If for good reason GTEC can not meet the times established for submission of financial reporting, GTEC shall notify the Finance Department in writing of the reason for the delay, provide an expected completion date, and request a waiver of the due date. At any time during or after the period of this contract, the Finance Department of the Town or a Town agent may audit GTEC's overall financial operation for the contract period. GTEC shall provide any financial reports or documentation necessary to accomplish such an audit. Section 8: Matching Grants GTEC agrees to obtain Mayor and Council approval prior to applying for any matching grants involving the commitment of Town funds. Section 9: Americans With Disabilities Act GTEC shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and applicable federal regulations under the Act (28 CFT Parts 35 and 36). Section 10: Terms of Agreement This Agreement between parties as described above shall be effective from the commencement date of this agreement through June 30, 2000 and may be extended by approval of the Mayor and Council of the Town. Section 11: Termination This Agreement may be terminated at any time by mutual written consent, or by either party giving thirty (30) days written notice to the other party, or at such time, as in the opinion of the Town, GTEC's performance hereunder is deemed unsatisfactory. Section 12: Indemnification To the extent not prohibited by ARS Section 35-154 and permitted by ARS Section 41- 621, GTEC agrees to indemnify, defend and save harmless the Town, its Mayor and Council, appointed boards, committees, and commissions, officers, employees, and insurance carriers, individually and collectively, from all losses, claims, suits, demands, expenses, subrogations, attorney's fees, or actions of any kind and nature resulting from personal injury to any person, including employees of GTEC or of any sub- contractor employed by GTEC (including bodily injury and death) or damages to any property, arising or alleged to have arisen out of the work to be performed hereunder, except any such injury or damages arising out of the sole negligence of the Town, its officers, agents or employees. Worker Compensation insurance and/or self-insurance carried by the Town does not apply to employees or volunteers acting in any capacity 4 for GTEC. Section 13: Independent Contractor The parties stipulate and agree that Agency is not an employee of the Town, and is performing its duties hereunder as an Independent Contractor, supplying its own employees, and maintaining its own insurance, workman's compensation insurance, and handling all of its own internal accounting. The Town in no way controls, directs or has any responsibility for the actions of GTEC. Section 14: Non-Discrimination This Agency promises to abide by Federal statutes relating to non-discrimination. Section 15: Insurance GTEC agrees to: A. Obtain insurance coverage of the types and amounts required in this section and keep such insurance coverage in force throughout the life of this Agreement. All policies will contain an endorsement providing that written notice be given to the Town at least ten (10) calendar days prior to termination, cancellation, or reduction in coverage in any policy. B. The Comprehensive General Liability Insurance policy will include the Town as an additional insured with respect to liability arising out of the performance of this Agreement. C. GTEC will provide and maintain minimum insurance limits as follows: COVERAGE AFFORDED LIMITS OF LIABILITY Workmen's Compensation Statute Employer's Liability $100,000 Comprehensive General $1,000,000 — Bodily Injury Liability Insurance Combined Single Limit products and completed $100,000 Property Damage operations Comprehensive Automobile $1,000,000 — Bodily Injury Liability Insurance Combined Single Limit Including: non-owned $100,000 Property Damage Leased, hired vehicles 5 IN WITNESSETH WHEREOF; the parties hereto have executed this Agreement as of the date first above written. TOWN OF ORO VALLEY, a municipal COUNTERSIGNED: corporation BY: As Town Clerk and not personally As Mayor and not personally APPROVED AS TO FORM this Of , 1999 Greater Tucson Economic Council BY: For Town Attorney and not personally Agency Representative and not personally By: Witness to the Agency Signature and not personally 6 Ch 0�1 Cl CA O% Irl CO 1.4N N. cy a .0 t c rl N ID t 1-1 o 44.CL W 11/ 3 in V) 5 IAa) M L 10 i :.' DI N O 14 I 4. 3 L 0.. 1 ail. >4 1P TN =ng 0 4)lit 94 >% t CO N Ill" 11 cb a t = m CY = W LA ✓ zto 3 r i CD o NAN g u E v.. ... z E g O z V IA 1 4... t 0.o . P4 aIn IL CU ..a E 1 1 : RI1%4 MEi � u o A d M 1 i III N 1 M 0 O 0 4 0 0 0 Q CI WI 01 N ri 11/4 QUARTERLY PROGRESS REPORT Vim lei BER Ah. April 1, 1999—June 30, 1999 ,,, as eimparm.si lairs Pad Gory its6od6 ! Submitted T • o. The Town of Oro Valley By: The Chamber of Northern Pima County In accordance with Resolution No. (R) 98-98, Section 1.3. A. Tourism, Visitors Services and General Information. The Chamber has provided tourism and visitor services and information to anyone who has expressed an interest, including Town residents and seasonal tourists over theast three months. Below P e ow are data on activity that the Chamber has addressed through this quarter. TELEPHONE CALLS &ACTIVITY Z Category April May - 1. Member June TOTAL calls for business 164 98 91 353 2. Relocation Packages 32 33 42 107 . 3. Information faxed/sent 12 14 9 35 4. Calls for new Membership 25 19 115 5. Office visitors 32 33 42 107 6. General/Relocation/ Visitor calls 366 198 68 632 7. Web site visits 1611 735 1965 4311 1. Member calls for business: These are calls from people who are already . P P members of The Chamber who call for any type of Chamber business. 2. Relocation Packages: Newcomers Kit for people relocatingto the Northern . P Pima County area. It includes an area map, demographics of Oro Valley& Northern Pima County, The Guide, attractions,actions,hotels &restaurants. 3. Information Calls: Requested info other then relocation or visitor kits, such as s ma demo hics accommodations. P ' gra p ' & 4. Calls for new membership: Calls to the office regarding membership information. 5. Office visitors: People who come in to the Chamber office for information. 6. These are calls for a wide variety of information. We eitherrovide the information ormation requested or refer the caller to another source if we do not have it. 7. A "hit" is one download of the HTML file of ae, or of an image. "HTMLhits" P� ge are hits on HTML pages only,not images. Most people regard this as the most useful thinglook to at since they correspond one-to-one with pages as the visitor sees them. B. Chamber Operations: The Chamber took a major step near the end of thisuarter byhiring rin g an experienced Chamber executive as its Executive Director. John Bowers, a 35- year veteran of Chamber management ge t started work on June 14. His resume is attached. The concerns to which the Executive Director has been asked to give priority attention include: • Increasing the Chamber's membership and financial base. • Getting increased participation of members in Chamber programs and activities. • Improving communications with members and the public. • Enhancing Chamber identity and visibility. • Developing programs to increase the value of Chamber membership to Small Business and to specific business clusters. • Providing improved level of service through The Chamber office to members and the public. • Establishing alliances with other Chambers,governmental entities and business associations. Also joining The Chamber staff during the quarter was Kassandra Lumsden, a life-long resident of Northern Pima County. Kassandra serves as Office Manager and Administrative Assistant. These two new employees make up The Chamber's administrative staff and are responsible for internal operations. C. Business Recruitment, Retention and Outreach: Much of The Chamber's activity during the past quarter dealt with creating business opportunities for the businesses of our community, providing useful information to our members, and enhancing The Chamber's role in the community. During the quarter The Chamber: • Held four networking events to help members and guests develop new customers for their products or services. • Produced a publication entitled" Marketing Tips" to provide members with new ways to market their businesses. (copy attached) • Hosted a meeting at which the Governor's point person for Y2K business issues addressed things small businesses need to do to become Y2K compliant. • Initiated planning for a Northwest Business Expo, to be held on September 22, in conjunction with the Marana Chamber. • Participated in Oro Valley's 25th Anniversary Party. Representatives of the Chamber: • Met with the President of the Greater Tucson Economic Council to explore ways in which The chamber can more visibly support G'I'EC. • Participated in the groundbreaking for the Sheraton El Conquistador expansion. • Initiated planning for a Small Business assistance program to help smaller enterprises become more aware of resources available to them. Chamber Committees: • Established a dialogue with new Council member Wayne Bryant. • Discussed the status of critical habitat for pygmy owls, and the potential impact on our community,with Alan Lurie of SAHBA • Presented the$1,000 Steve Engle Memorial Scholarship to Canyon del Oro High School graduating senior Nicholas Rickert. • Continued the ongoing Chamber image campaign. • Contracted for publication of the 1999-2000 Community Guide. • Began planning the Great Pumpkin Fat Tire Bike Race and Expo to be held on October 23. • Conducted Member Appreciation Month in June. • Held three monthly breakfasts with topics of timely interest to members. • Welcomed 17 new members into The Chamber. D. Summary The past quarter marked the completion of The Chamber's staffing transition, but because of major time contributions by the volunteer leadership, the level of activity remained high. We appreciate the opportunity to meet regularly with Town staff members, and especially appreciate the Council's action renewing the contract for the next year. We look forward to a continuing productive relationship. L A /lie 1111(111 1111E ilm.0 AbuaC:suuir IL' ovd Fri 1rirp ! L MARKETING TIPS How to make the most of your Chamber Membership GAIN THE EDGE with The Chamber The Chamber of Northern Pima County offers your company a Other Available Marketing number of ways to "Cross Market" your business, both internally Opportunities: and externally in the community. The following is a list of all the 1. Advertising in The Guide to Northern ways to use your Chamber membership to assist in marketing Pima County: your company, products and services. Various sizes and prices of advertising are available for you to choose the one best suited to you and your business. 1. Listing in the Guide to Northern Pima County: 2. Sponsorship: Every member of the Chamber is listed in The Guide under their a. Breakfast Sponsorship is a unique way to provide specific business category, and also alphabetically. The Guide is high visibility very inexpensively at only $100. Monthly breakfast mailed out to all Visitor and Relocation requests to the Chamber, meetings are the last Thursday of each month. This is an exclusive to all new homeowners in our area, and to all current residents sponsorship so you are the only one able to prominently display of Oro Valley through the town. all of your marketing items and banner for everyone in atten- dance to see. 2. Resource Tables: At all regularly scheduled meetings, there is a resource table for b. Business After Hours Sponsorship is usually you to bring your brochures, discounts, flyers and other informa- at your place of business. The only requirements are a location tion for members to take with them. There is also space available large enough to accommodate the members and the service of to display your business information in the Chamber office, and refreshments. The possibilities are endless. You decide when to opportunities for it to be mailed out with visitor and relocation hold the event, although we do suggest around mid-month. You requests as well. decide how to introduce your business, what food & beverages to serve and how much to spend. The Chamber does the advertising 3. The Chamber Monthly Newsletter: for you with announcements in each newsletter at no charge to All newsworthy items regarding your business: new hires, promo- you. The After Hours Event gives you a captive audience and the tions, products or services, along with thank you's and Business of opportunity to distribute information about your products and the Month articles can be published in the monthly newsletter if services as well as a few minutes to speak about your business. you provide them. c. Event Sponsorship is available for each of our var- 4. Discount Program: ious Chamber events. Sponsorship levels begin at $500 and go up By extending a discount to other Chamber members, you will be to $5,000 depending on your marketing needs. Each level has a listed in the newsletter and once a year up-dated in the new number of certain benefits to provide excellent advertising and member information section. market exposure. 5. Image/Testimonial Campaign: Currently we are running a print and ad campaign that enhances the benefits of belonging to The Chamber. You may get involved by giving us a testimonial of how the Chamber has benefited your company, the name of your business will be highlighted in the ad. 6. Networking Meetings: Every meeting, committee or event you participate in gives you a chance to network with other professionals to strengthen your business. The time you spend at each of these events can be one of the best investments you will ever make. THE RIGHT INVESTMENT - YOUR BUSINESS Whew! The tax man cometh, and by now he is gone! How well did you fare? It really depends on how you ran your business throughout the year, the records you kept, and how wisely you re-invested in your business. As with anything, the more you put into your business the better the return. The lessons learned at tax time can actually apply to so many aspects of running your business daily. And, to your membership, of course, in the Chamber. A schedule of events and networking opportunities is listed monthly in the Newsletter, and the Chamber staff sends out monthly reminders of all the Chamber happenings. It is up to you, in running your business, to choose the activity, committee, meeting, etc. that will be the best investment opportunity for you. Research, document and keep good records on the activities you choose and you will be amazed at the return you receive at the end of the year. Joining one of the on-going Chamber committees gives you the opportunity to lend your expertise to your peers, and learn from them as well. Attending the monthly breakfast, lunch and/or after hour event provides the perfect avenue to meet new people in the community and build your network. Sponsoring a special event gets your name out to more people than you can even imagine. So, just do it! Invest in the Chamber, invest in yourself and reap the rewards all year round! REACHING YOUR TARGET MARKET New customers mean your business is growing. How you find new customers is a matter of choosing your target customer group, then reaching out to that group frequently, clearly, and consistently. You've already invested in your business with membership in The Chamber. You may have joined just for the great networking opportunities. But what about reaching all Chamber members with a specific message? What about using the Chamber to reach non-Chamber members? Besides providing your company with great networking opportunities, the Chamber also provides excellent advertising opportunities. One look at this list and you should find an advertising opportunity that targets your customers and fits your budget. • Advertise in The Chamber newsletter to get a specific message to other Chamber members. ($150-$450 a year). • Sponsor a Chamber event to get your company name in front of Chamber • members and members of the community. (cost varies). • Sponsor a breakfast and get five minutes to personally present your company to dozens of Chamber members simultaneously. ($100) • Place your company information on the resource table at breakfasts • and luncheons to get details about your product/service to other Chamber members (free). • Advertise in the Guide, with a specific message that will reach • people over the next year, including people relocating to the area ($295 and up). • Link your website to the Chamber's website (www.the-chamber.com) and • give your company worldwide exposure ($20 a year). • Get started on the web by leasing a page from the Chamber ($300 a year including development of your page). Make the most of your Chamber investment. Extend your reach to potential customers by advertising. Contact the Chamber offices for details on all advertising opportunities. IMAGE IS EVERYTHING The Chamber knows that every savvy business owner or manager looks for opportunities that will not only help increase business but will promote their image as well. We also know that for many of you business owners advertising dollars are somewhat limited and require a lot of research and planning to ensure to ensure you hit your target market. Therefore, it is important to find additional avenues to get your name out without adding to, or taking away from, your advertising budget. (Remember last month the Chamber Investment Corner offered some great, inexpensive advertising opportunities offered to Chamber members.) The Chamber actually provides members a number of FREE promotional opportunities. As we speak, the Chamber's Marketing and PR Committee is hard at work creating an image campaign for the Chamber that will highlight Chamber members. Additionally, the monthly newsletter promotes and highlights active member businesses with photo opportunities; Chamber testimonials and thank yous; the Business of the Month column; and business updates and press releases supplied by the members. The Explorer and Casa Adobes Courier take a special interest in the Chamber as well and often highlight info and special events held by the Chamber and its members. In fact, the Explorer publishes the Chamber's Business of the Month article in their newspaper each month providing additional (FREE) exposure to the northwest communities. So it's true... "the best things in life are free!" However, to get all this FREE stuff and become a STAR of TV, Screen and print, there is one catch! You have to be involved. The photos that appear in the newsletter, Explorer and the Courier are taken at the Chamber events. The Business of the Month is chosen from the month's accumulation of business cards acquired at the lunch and After Hours. Testimonials and Thank yous are also collected at each of these events. And, the monthly Chamber luncheons are a great venue for you to toot your own horn and let everyone in the room know just how great your business truly is. The time you spend at each of these events can really be one of the best investments you will ever make. ADVERTISE - GAIN THE EDGE Being in business these days is not easy. And as Northwest Tucson grows at record pace, business owners are challenged daily to stay ahead of the competition. Maybe you have taken the time to notice the competitors in your field. You offer basically the same product or service, you are both well located to reach the buyers you are interested in, you may even excel in product or service, but the competition seems to be gaining the edge, taking the lion's share of business for himself and away from you. Upon further examination of why this is happening, I bet you will find one startling difference between the two of you. The other guy is marketing his product. I know a lot of you think that by marketing and advertising your business through newspaper, direct mail, couponing, radio, TV, you are just throwing your hard earned dollars in a big black hole. You close your eyes, cross your fingers, and hope something sticks. To make you feel more at ease about marketing your business, there are several key issues to look at. Advertise! If the people you are trying to reach aren't aware of your location, your product or service, you have to let them know. Where to advertise? When you are ready to invest in advertising you need to choose a media that is affordable, one that will directly target the buyers you are looking for. Local cable, local newspapers and The Chamber newsletter are a good starting point. They are going to reach the buyers you are interested in. And let's face it. The way the Northwest has become its own suburb, folks don't need or like driving far distances if they are able to find what they need in their own backyard. What is an effective ad campaign? Your ads need to reflect your strengths in your particular field. The more you educate your buyers, the more they are able to make an informed decision and they in turn feel more comfortable about using your business. So, start to gain an edge over your competitors! ADVERTISE! SUCCESSFULLY WORKING AN EXHIBIT BOOTH The Chamber and Community Business and Health Fair is a great, and inexpensive way to effectively market your business. Your prime objective p at a business fair is to qualify the needs of a target/prospect in a way that providesyou ou the opportunity to follow up with a call, letter or offer that leads to an appointment or sale. Below are Guidelines For Working Your Exhibit Booth to help make this and any Business Fair successful: • Don't use a fish bowl unless you give a prize you feel will get qualified leads. • Give ad specialties out personally, don't leave them in a pile for anyone to grab. • Stand up the entire time. • If more than one is attending from your company, assign coverage responsibilities. • PAY ATTENTION TO CUSTOMERS IMMEDIATELY. • Have the booth covered 100% of the time. • Qualify each prospect quickly with an open ended question. • Use the four qualifying rules to get leads and make sales: • Establish rapport • Establish need • Establish interest • Establish next action (mail, call, appointment) • Have lead sheets if you need more information beyond a business card. • See if you have a friend or other interest in common. • Write notes on business cards or lead sheets immediately Be sure to follow up shortly after the Business Fair while your information is still fresh in the minds of your potential customer. Have fun and Good Luck! SOMETIMES YOU HAVE TO SPEND MONEY TO MAKE MONEY... And the Chamber offers opportunities that can put your business in the limelight and add to your bottom line without using too much of that green stuff. A Business After Hours is just one of those opportunities. Actually, the cost of a Business After Hours for the Chamber is entirely up to you. The After Hours is usually done at your place of business. You decide when to hold the event, what to do at the event, and what food to serve at the event. The Chamber does the advertising for you with announcements at each of the monthly meetings as well as mention in the monthly newsletter. Plus, the Chamber doesn't charge you a dime, the only ones writing a check will be those who want to get in and find out more about your business. With an After Hours event you have a captive audience and the opportunity to distribute information about your goods and services as well as a few minutes to give your best marketing "schpiel". An After Hours event is usually held mid-month and is designed as another networking opportunity for members. The only requirements are a location large enough and refreshments. You do have to call the Chamber office to arrange your date, because, as you can imagine, this is a very popular and extremely cost efficient promotional tool and the calendar fills up fast. We are taking reservations for 1999. Another inexpensive marketing tool for your business is a Breakfast Sponsorship. This unique opportunity is only $100 and provides your business high visibility at the Last Thursday of the Month Breakfast. With this sponsorship there are a number of promotional opportunities. You will be able to prominently display your banner for all to see. And, this is the only time you will actually be able to have all your marketing paraphernalia right in front of every chamber member in attendance due to your exclusive information distribution rights. You will also eat for FREE as one complimentary breakfast is included in the sponsorship. You may want to reserve a table for the other members of your organization to provide support as you "wow" the audience with your five minute presentation on the important how's, why's, when's and where's of your business. Again, the Chamber will do the advertising for you in the monthly newsletter and with announcements throughout the month. All you have to do is call the Chamber office to find out the next available sponsorship opportunity and pencil it in! WHAT'S IN A NAME? The most important marketing decisions you'll make are choosing the right business name and then creating name recognition. How many of you call your blue jeans "Levis"; your facial tissue "Kleenex"; and your soda a "Coke"? Locally, we all know Jim Click Automotive, Dominos Pizza and Casino of the Sun because we hear about them everywhere - on the radio, on TV, in print. These companies know the importance of name recognition. They started by getting their name out and letting the community know what they do, where they're located, etc. This can be accomplished in many ways, even on a small advertising budget. And, one of the easiest and most affordable ways is to access the Chamber's events and publications to promote your business. Your company's name holds great importance. However, many businesses find themselves with little or no name recognition within the communities they serve. There are several reasons you may be having trouble with "everyone knowing your name." Maybe you are new to the community and your business is brand new. Maybe the company you work for has recently merged or been acquired by another company. Maybe you have expanded your business and the name doesn't reflect what you really do. According to Chamber member, Mike Woolsey, owner of"Websites and CDs" (formerly "CDocs"), your business name means "everything." Mike found that the name "CDocs" was misleading to the general public creating a lot of confusion - he had lots of"explaining" to do. Although he knew what services he was providing, the public didn't. Many people thought he provided repair services instead of website/Internet services. He has found his new name, "Websites and CDs" needs less explanation. So, remember, "if you build it, they will come" only works when they know who you are and that you are here. DESIGNING A BUSINESS PLAN The Executive Summary The part of the business plan that is intended for the outsider is the executive • summary. If the Executive Summary suggests a promising business for investment or loan, the experts read further. Your objective in the business summery is to entice and convince investors to further study your business plan. An effective Executive Summary describes all of the key elements of a business plan in two pages or less. The goals of the Executive Summary are to provide guidance and sense to the plan, build confidence in the plan, involve the management team early on, and leads to a better product or service. It must include the following essential information: • A synopsis of the company's strategy for success • A brief description of the market (what makes your company unique in that market) • A brief description of the product or service • A brief introduction to the management team (qualifications and previous successes) • A summary of the historical as well as forecasted financial data • An estimate of venture capital or loan funds that you will need and how you will use it The Company This part of your business plan deals with the company, strategy, and management team, It is important for anyone assessing a business to understand its history and current status in order to project what lies ahead, This part of the business plan provides a synopsis of the company's past. present, and future. This section can be divided into three parts, • History • Current status • Future Strategy Strategy is an assessment of the company's overall approach to producing and selling its product or service, Strategy can be expressed in terms of guiding principles and philosophy. The Management Team The experience, talent, and integrity of the founders and the management team are the primary concern of the professional investors, Your business plan should describe how the company is organized, and what each must also think about whether to have an in-house service department. Regulations Your business plan should explain fully any government regulations that may affect your business. In addition to federal regulations, you may also have to comply with state and local regulations and laws that affect the manufacturing of your product. Insurance questions that address what steps you have taken to cover your building and valuable machinery should also be addressed. The Market Marketing must be distinguished from sales. Marketing is the art of identifying a need then satisfying it with a particular product or service, Sales is convincing the prospective customer to purchase your product or service. This part of your business plan focuses on demonstrating for the potential backers that a market exists for your product or service. Your company's market can best he described by answering the following questions: • What is the market? • How large is the market? • Where is the market headed? • What is the competition? Beyond providing an overview of the market's composition and organization, executives must demonstrate an understanding of key market dynamics. Your understanding and description of your product's place in the market place is essential to getting financial backing. • What motivates buying decisions? • How is the market segmented? • How will your product or service be positioned in the market? • Is your company perceived as a technological leader or follower? • Have you acquired a reputation for fast and reliable service? • What is your defensive strategy? Your market research should include an accumulation of data available from published sources such as government or industry-associated statistics and news articles. The most important aspect of market research is feedback from prospective customers. Getting such information requires that you speak to these prospects or get them to fill out questionnaires. The more hard data you have from potential buyers about theirs needs and preference, the more convincing the market section of your business plan will be c(,-c-u ,-)Aciti„).-a�� Presentation to the Town of Oro Valley Town Council by The Greater Tucson Economic Coundi June 16, 1999 =_---- _-_-_-_-______--- ______ _-____ f 1 '-.. ---- -.______ ....,, 1 , _ Ili ,......iimum- .. : ri: le _ _______ 1* , v _is.., - _ ._ '�REATER, p TU@SeN _i.--- ECONOMIC COUNCIL GTEC and the Town of Oro Valley have enjoyed a long and mutually beneficial alliance. GTEC's economic development activities have benefited the entire Tucson and Pima County area, including the Town of Oro Valley. Through the implementation of the Greater Tucson Strategic Economic Plan released in 1993 and currently being updated, Pima County has seen an increase of 54,000 new jobs, 115,000 new residents, and over 36,000 new housing units. Retail sales grew 34.4%, personal incomes grew 40.2%, and annual earnings per worker increased 7.7%from $22,700 to $26,900. GTEC's locates have accounted for 17,753 jobs, $444 million in Wages, $1.4 billion in Sales and $49.9 million in Tax Revenues, $8.8 million of which went to Pima County. This includes over$220 million in construction generated by GTEC locates since 1993. According to the University of Arizona's Pima County Input- Output Model, the residential construction impact of GTEC locates in Pima County since 1993 is more than $17 million. GTEC's assistance with local business retention efforts on behalf of Allied Signal were successful in keeping this important firm in our community. During the first three quarters of the current fiscal year, GTEC has updated its collateral material distributed to all of our prospects to include the Town of Oro Valley's information. We have also provided a hyperlink on GTEC's website to TOV's website. GTEC's futurewest.com received 53,706 hits with an average user length of 17 minutes during May 1999. TOV's real estate information has been included in GTEC's real estate database and is provided to those prospects that fit TOV's profile for business recruitment. Our staff also works closely with Jeff Weir in coordinating visits from prospects with a specific interest in Oro Valley sites, especially through the monthly GTSPED and Development Services meetings. Through the Third Quarter this year, GTEC has assisted 11 firms, with 685 direct jobs, and more than $27 million in capital investment. 1 The staff is currently working with over 55 Level 1 and 2 prospects out of a total of 1,366 total prospects contacted. The staff has attended 19 trade shows and placed 30 ads in major site selection and trade publications to market Tucson and Pima County. A la 1111 *1 II Ai bs ir ER ECONOMIC COUNCIL i Tucson , Arizona A Sound Decision In 1999 GREATER TUCSON ECONOMIC COUNCIL'S COMMITMENT TO COMPANY CONFIDENTIALITY Greater Tucson Economic Council (GTEC) will not disclose a company's identity until it has approval to do so. In the event that public incentives are sought, public entities may require disclosure of company identity and financial information in order to consider such requests. Information contained in this document has been obtained by outside sources or agencies which Greater Tucson Economic Council deems as reliable, however GTEC does not guarantee its accuracy. IP TABLE OF CONTENTS TUCSON, ARIZONA tA Sound Business Decision Table of Contents 1. INTRODUCTION 2. LABOR AND JOB TRAINING 3. EDUCATION AND WORK FORCE DEVELOPMENT 4. BUSINESS OPERATING COSTS 5. TAX REDUCTION PROGRAMS 6. TUCSON - MEXICO CONNECTION 7. REAL ESTATE/FACILITIES 8. INFRASTRUCTURE/TRANSPORTATION 9. ADVANTAGES/QUALITY OF LIFE r Welcome to the Future's Frontier. . . Tucson, Arizona! Greater Tucson Economic Council (GTEC) is pleased to showcase our community's many advantages to you and your company for expansion or relocation. GTEC is a private, non-profit corporation funded by the City of Tucson, Pima County, Town of Marana, Town of Oro Valley and investments from the private sector. GTEC's primary focus is the development of new jobs through the recruitment of expanding or relocating businesses to Greater Tucson. GTEC's service area is southeastern Pima County including the Town of Marana and the Town of Oro Valley. Marana and Oro Valley present unique opportunities just outside the northern edges of Tucson. Oro Valley is in northeastern Pima County, six miles north of the Tucson City limits. The 24 square mile community sits at an elevation of 2,620 feet in the midst of spectacular views of the Santa Catalina Mountains. The population is approximately 8,000 residents who enjoy a broad range of community and recreational activities. Oro Valley, dedicated to its plan for economic development, focuses its efforts on interesting new R&D and other technology related firms to the Rancho Vistoso Industrial Park. Marana is in northwestern Pima County with the City of Tucson at its southeastern border. Marana incorporates approximately 70 square miles within its boundaries. In September 1993, the town annexed approximately 1.75 square miles that included residential housing and a significant number of retail and commercial businesses that have brought the former farming community prosperity. Continental Ranch, the town's industrial park, is located at 1-10 at Cortaro Road and offers excellent opportunities for a variety of manufacturing and support industries seeking a location in a fully developed park atmosphere. Strategic Plan The foundation of GTEC's economic development program is the industry cluster concept that evolved in 1994 as a part of local strategic planning efforts. The industry cluster concept is used to create synergy within the following 6 business cluster groups: > Aerospace ➢ Optics • Biolndustry > Software ➢ Environmental Technology ➢ Teleservices • Plastics & Advanced Composites Materials Additional targeted industries are Electronics and Instrumentation, Warehouse and Distribution, General Manufacturing, and Metal Fabrication. GREATER TUCSON ECONOMIC COUNCIL Tucson, rizona. The Greater Tucson Strategic Partnership for Economic Development (GTSPED) was organized to coordinate the development goals of the community and chart a course for Tucson's future. The cluster industries play a significant role within GTSPED and work to promote the industries as well as address any issues at the local, state, and national levels that affect their businesses. What does this mean to your company? It shows Greater Tucson is a community prepared to do what it takes to chart its course into the 21st Century. Tucson has taken a proactive approach to insuring its future economic success. As a community that understands the importance of business, Greater Tucson is poised to address the needs of the business community. Government officials understand that in order for the community to continue to thrive, its businesses need a supportive environment. High priority agenda items are workforce development, a business-friendly tax base, ease of permitting, and environmental quality. Metropolitan Tucson has proven itself as an area of opportunity for business. Its creative citizens boast a high rate of entreprenuership. In fact, Home Office Computing magazine recently ranked Tucson the third best environment in the nation for starting a new business. Why are leading-edge companies choosing Greater Tucson? • A skilled and productive workforce which continues to grow each year • Nationally recognized education institutions such as University of Arizona and Pima County Community College provide access to an educated labor force and leading edge technology. • Low over all business operating costs result in a higher profit margin • A business friendly tax environment, including tax reduction programs, job training funds, designed to lower costs • Special financing programs designed to assist your company's expansion financing needs • Ease of access to the global marketplace and a strategic position on the CanaMex Trade Corridor • Ample and quality facilities and building opportunities whether your company is looking for Class A office space or an innovative industrial park • Ease of access to customers and suppliers - Only 63 miles from the Mexico border, 420 miles from San Diego, 320 miles to El Paso. Trucking, air, and rail service ready to meet your transportation needs • An unsurpassed quality of life for you and your employees GREATER TUCSON ECONOMIC COUNCIL Come see why companies in search of an affordable, technology-oriented business center for expansion or relocation are choosing Tucson, Arizona. Greater Tucson is positioned to be a dynamic and thriving business center in the new millennium. Whether your company is considering a total relocation or expanding to meet the needs of your customers, its time you look to the future. Join us in The Future's Frontiers '_ 0 - IIA ______ ___________:_.,ii____17:______ _ _ : **** 7.00.;:: .4--1- -. r s 6 GREATER TUCSON ECONOMIC COUNCIL LABOR AND JOB TRAINING LABOR AND JOB TRAINING POPULATION Labor is the cornerstone for growth of the economy in Tucson. Population serves to continually supplement the pool of workers, providing a readily available workforce for Tucson's corporate citizens. In 1990, the population was recorded at 666,880 and in 1999 is recorded at 841,739, representing approximately a 20% growth over the number reported in 1990. In the year 2000 the population is projected to be 861,383. The City of Tucson is 194,146 square miles with a current population at 479,363. Percent Year Population Change 1997 799,834 3.5 Tucson,AZ Population 1998 823,900 2.9 950,000• --= LABOR AND JOB TRAINING LABOR FORCE At the time of the 1990 Census approximately 62% of Pima County's population 16 years and older was in the labor force. According to 1997 estimates, 60% of the population 16 years and older was participating in the labor force. Greater Tucson's labor force distinguishes itself as one that is highly educated which has led to a high level of under employment. A review of employment distribution indicates that services (29%), government (28%) and trade (20%) are the largest sectors of employment. It can be construed that the majority of workers are under employed if consideration is given education of the population, skills vs. employment distribution. Other sources of labor surface from the educational systems in Greater Tucson. The University of Arizona (33,330) and Pima County Community College (53,000), together make up a student population of approximately 83,330. According to the University of Arizona, the mean age of an undergraduate student is 23 years old, and 32 years old for graduate students. Pima County Community College reports that the majority of students fall within the 20-29 age range. As the cost of higher education continues to increase across the nation, the trend is for students to seek employment while in school to supplement their incomes and defer tuition expenses. In addition, high schools provide an important base of labor as these new workers enter the pool of labor as sophomores, juniors and seniors. Graduates of vocational and technical schools such as ITT Technical Institute and Tucson Business College continually provide a steady flow of trained workers into the labor force. A portrait of Tucson's employment is shown below. Labor Distribution in Tucson, AZ 120,000 100,000 ©Manufacturing "'Mining O Construction 60,000- O TCPU •Trade 40,000 _ •FIRE •Services 20,000 - 0 Government As Of December 1998 Another source of labor is Davis Monthan Air Force Base (DMAFB). Located just east of the Tucson International Airport, it is home to the 354th A-10 fighter squadron as well as the 357th and 358th training squadrons. Approximately 6,500 military and civilian workers are employed in DMAFB operations. The average enlisted person is 30 years old and approximately 1,000 people retire from DMAFB each year. Spouses and dependents of spouses represent a labor pool that can be accessed through the DMAFB Family Support unit in cooperation with the Arizona Dept. of Economic Security's Job Service Bank. GREATER TUCSON ECONOMIC COUNCIL LABOR AND JOB TRAINING The Arizona Department of Economic Security's Job Service Bank has been a critical link in the recruitment of employees for area businesses. This free service has been "put to the test" in Tucson. Unlike many other similar programs elsewhere in the U. S. it successfully assists new and existing employers enlist the talent necessary to begin or expand operations in Tucson. This service may include management of applicant traffic, application completion and initial screening. Wage and Salary The average earnings per worker in Tucson in 1998 was $26,804, according to the University of Arizona's College of Business & Public Administration. Wages for selected occupations within the seven cluster industries of aerospace, bioindustry, environmental technology, optics, plastics, software, telecommunications, and other targeted industries of metal fabrication, distribution, electronics and microelectronics, and manufacturing n.e.c. appear below. Tucson Wage & Salary Percent Year Employment Change 1998 327,900 3.2 1999 339,000 3.4 2000 349,100 3.0 2001 358,700 2.7 2002 368,000 2.6 2003 377,800 2.6 2004 389,300 3.1 Source:Arizona's Economy,Jan 1999 GREATER TUCSON ECONOMIC COUNCIL LABOR AND JAB TRAINING Median Hourly Occupation Title Wage $ Professional/Technical ' Loan Officers & Counselors 16.76 Accountants &Auditors 14.12 Personnel, Training, Labor Specialists 14.67 Computer Engineers 20.36 Industrial Engineers 18.36 Mechanical Engineers 24.04 All Other Engineers 24.02 Computer Support Specialists 15.71 Clerical Occupations Secretaries 9.89 Receptionists & Information Clerks 7.60 Typists, Including Word Processing 8.74 File Clerks 7.63 Stock Clerks, Stockroom &Warehouse 8.01 Production/Maintenance Occupations Machinery Maintenance Workers 16.60 Small Engineer Specialists 9.70 Electrical Installers & Repairers 12.57 Custom Tailors & Sewers 7.18 Welders & Cutters 11.11 Industrial Truck & Tractor Operators 9.76 Operating Engineers 16.35 Freight, Stock & Material Movers 7.17 Hand Packers & Packagers 7.09 Source:Arizona Department of Economic Security, 1997 Wage Survey Right to Work Arizona is a constitutionally mandated Right to Work State. By virtue of Article 25 of the Arizona Constitution, closed union shops are illegal in Arizona and employees may not be forced to join unions as a basis of employment. This article has had a profound effect upon unionization in Arizona as only 4.9% of Arizona's manufacturing labor force is unionized, one of the lowest in the nation. These factors, coupled with low workers' compensation and unemployment insurance rates, help to illustrate Arizona's commitment to a pro-labor environment. GREATER TUCSON ECONOMIC COUNCIL LABOR AND JOB TRAINING THE TOP FIFTEEN PRIVATE EMPLOYERS Number of Employer Type of Business Employees Raytheon Missile Systems Tactical & strategic defense missile systems 7,500 Carondelet Health Network Integrated health care delivery network 4,041 TMC HealthCare Health care 3,450 BHP Copper Co. Copper mining 2,700 Phelps Dodge Corp. Copper mining 2,700 Asarco Inc. Copper mining 2,500 University Medical Center Health care 2,355 Intuit Financial/tax software, services 1,422 American Airlines Commercial airline 1,300 IBM Storage Systems Division Develops storage products for computers 1,200 Columbia Northwest Medical Health care 1,100 Center Bombardier Aerospace Completion & refurbishment of business aircraft 1,000 Burr-Brown Corp. Semiconductors, IC circuits 1,000 First Data Corp. Teleservices Telecommunications 1,000 Tucson Electric Power Generating, distribution of electricity 964 Ranked by number of local full-time equivalent employees,excluding retail employers Source: 1999 Tucson Book of Lists GREATER TUCSON ECONOMIC COUNCIL EDUCATION AND WORK FORCE DEVELOPMENT EDUCATION AND WORK FORCE DEVELOPMENT Education has a high priority in the Greater Tucson area. Tucson's educational system reflects the community's diversity, offering programs at all levels that meet the needs of both student and employer. The University of Arizona, southern Arizona's 4-year college, provides undergraduate and graduate educational learning experiences to meet the challenges of the 21st century. The University of Arizona with Pima County Community College, metropolitan Tucson's 2 year college, collaborate to develop curriculum to provide a college level educational foundation and then facilitate the transition of students to the University of Arizona. Both educational institutions have maintained excellent partnerships with employers to address workforce development challenges. Complimented by the K-12 educational system, the education infrastructure is well developed and is characterized as one that is highly cooperative with a pulse on the needs of the business community. Primary and secondary programs are designed to include the special needs of students in areas such as gifted, honors, bilingual, vocational, and mentally and physically challenged. Special initiatives developed by Tucson's business and education leadership involve a full complement of programs that are inter-linked to meet short and long- term workforce needs. Advanced K-12 placement programs help students develop creative thinking and reasoning skills that help them gain a better understanding of the business world. Private vocational and business schools with programs that prepare students for entry into the job market thrive. The University of Arizona The University of Arizona (U of A) in Tucson is a 351 acre land-grant college established in 1881. Located near the Central Business District, it is one of the top 10 Public Research I institutions in the country (ranked by the National Science Foundation). The University is nationally renowned for advances in optical sciences, medical sciences, electronics, scientific instrumentation, astronomy, geology, and business studies. The U of A currently enrolls over 34,000 students and in the 1997-98 school year awarded 7,279 degrees. The U of A is ranked among the top universities in the nation for research funding. Among the research areas, some highlights are: • The heaviest concentration of astronomical science study programs and facilities in the world including Kitt Peak National Observatory, Mount Graham Observatory, the Steward Observatory, the Lunar and Planetary Laboratory and many others. • The University Medical Center (UMC) is ranked as one of the top in the U. S. with special recognition for its cancer, heart programs and otolaryngology according to U. S. News and World Report, July 98. UMC's heart transplantation program boasts one of the best survival rates in the world. UMC is an independent, non-profit 365-bed hospital affiliated with the University of Arizona's College of Medicine, Arizona's only medical college. GREATER TUCSON ECONOMIC COUNCIL Wm EDUCATION AND WORK FORCE DEVELOPMENT • The Optical Sciences Center is known internationally as one of the premier institutions in the world for the study of optics and is an independent department offering graduate studies leading to an MS or pH in Optical Sciences. The Center's research thrusts include optical data storage, laser spectroscopy, optical circuitry, semiconductor laser physics, medical imaging, remote sensing, scanning tip and near field microscopy, theoretical and experimental quantum optics, infrared technology, photorefractive materials science, optical design interferometric testing, and opto-mechanics. The U of A is one of only two institutions in the U. S. with well-established programs in optics and which offer a Ph.D. degree in the discipline of optical sciences, graduating the most Optical Sciences students in the nation. • The Department of Aerospace and Mechanical Engineering is renowned for its educational and research activities related to: - aeronautics, propulsion and rocketry, space technology; automation - manufacturing - automatic control, manufacturing technology, reliability engineering; - bioengineering - biomedical engineering and micro sensors; - mechanics - computational mechanics, fluid mechanics, kinematics and dynamics and solid mechanics; - thermal and energy sciences - energy systems, heat transfer, nuclear systems and thermodynamics. • The Department of Chemical Engineering has earned an enviable reputation in electronic materials, environmental engineering, crystallization, combustion, turbulent flow, separation science and biomedical engineering. • The Electrical and Computer Engineering Department, conducts research and educational programs ranging from electromagnetic scattering to communications and information processing, from semiconductor electronics to computer engineering, and from circuits to signal processing and image analysis. This department is ranked as one of the top 20 among public institutions in the U. S. and the top 10 percent of ECE departments in all U. S. colleges and universities. • The Materials Science and Engineering Department is one of the top ten in the nation. The department's Arizona Materials Laboratory provides one of the best university based facilities in the nation for material characterization and evaluation. • The Systems and Industrial Engineering Department was established in 1961 as the nation's first department of systems engineering. The department enjoys a national and international reputation for research, particularly in systems theory and design, software engineering, operations research, production systems and in computational methods in probability optimization. The department's research focuses on manufacturing, telecommunications, transportation, service systems and environmental systems. GREATER TUCSON ECONOMIC COUNCIL „.... EDUCATION AND WORK FORCE DEVELOPMENT • The Karl Eller Center offers academic courses for students interested in economics, general business administration, international business, public administration, entrepreneurship and has consistently received recognition by U.S. News and World Report. The University of Arizona's Management Information Systems Department program was ranked third best program in the United States by U.S. News & World Report, 1998 issue. During the 1997/98 school year, the University awarded: Bachelors Masters Doctorate First Prof Total Degrees Awarded 5,272 1,274 411 322 7279 There are 15 colleges and 6 independent programs at the U of A. Degree distributions are as follows: College Bachelors Masters Doctorates First Prof Agriculture 585.2 80.0 46.5 - Architecture 43.0 24.0 -- -- Arizona International Campus 1.3 - -- Business& Public Administration 1040.5 180.0 21.0 -- Education 321.0 187.0 35.0 - Engineering &Mines 419.2 147.0 49.5 -- Fine Arts 459.2 72.0 16.0 - Health Professions 174.0 -- -- Humanities 339.7 99.0 24.0 - Law -- 1.0 -- 160.0 Medicine - 79.0 19.0 104.0 Nursing 106.0 37.0 2.0 Pharmacy -- 10.0 17.0 58.0 Science 528.0 121.0 79.0 - Social & Behavioral Sciences 1,254.9 189.0 78.0 - Independent Program Bachelors Masters Doctorate First Prof American Indian Studies -- 12.0 -- -- Applied Mathematics - 12.0 -- -- Arid Land Resources Sciences - -- 1.0 - Non-Academic Departments - 1.0 2.0 -- Optical Sciences - 21.0 21.0 -- Planning -- 6.4 -- GREATER TUCSON ECONOMIC COUNCIL EDUCATION AND WORK FORCE DEVELOPMENT Community College System Pima County Community College (PCCC) offers two-year vocational and technical programs and academic curriculum that qualifies for university transfer credits. There are over 65,000 credit and non-credit students currently enrolled at PCCC. PCCC is the fourth-largest multi- campus community college in the nation with six campuses (100 satellite facilities) located in Tucson. PCCC offers more than 3,000 active and pilot courses in 69 different areas. In May 1998, 1,802 degrees and certificates were awarded. The Associate of Applied Science is the most popular degree, with a total of 625 awarded. The General Studies program has the most graduates, 380, followed by Nursing with 142, and Liberal Arts and Science, 72. Ninety-eight graduation candidates earned a 4.0 grade average. The college plays a significant role in local economic development, contracting to provide customized on-site training for firms. Clients have come from both the private and public sector and include American Airlines, Bombardier Learjet, the Bureau of Indian Affairs, Burr-Brown Corporation, Cross Country Group, IBM and Intuit. The following is a highlight of some of the target industry education programs available at PCCC: • Accounting • Aviation Structural Repair • Business Administration • Computer Programming • Digital Electronics Technology • Electronics Technology • Engineering • Environmental Technology • Industrial Design • Instrumentation & Process Control • Manufacturing Technology • Quality Control Technology • Telecommunications • Trade& Industrial Technology Continuing Education and Training University of Phoenix (UOP) is designed and dedicated to meeting the educational needs of the working adult. Students are business professionals that must have a two-year minimum of degree related work experience. On average 1,650 persons are enrolled, with courses starting every month to meet the scheduling demands of professionals. In addition to its degree programs the University of Phoenix offers short courses and one-day seminars in business or management areas. Undergraduate and Graduate degrees are awarded in a wide range of business related fields. The University of Phoenix is the second largest private institution in the country. Prescott College located in Tucson is accredited by the North Central Association of Colleges and Schools and offers bachelor's degrees in a variety of liberal arts fields including state- approved teacher certification programs. GREATER TUCSON ECONOMIC COUNCIL EDUCATION AND WORK FORCE DEVELOPMENT Other colleges and universities have a presence in Tucson. Colleges such as Northern Arizona University, Park College, Chapman University, Chaparral College, Troy State University, and Apollo College offer a variety of programs to meet the diverse needs of residents. Technical and Trade Schools Institutions range from Embry-Riddle Aeronautical University to Chaparral College. ITT Technical Institute offers Associate of Applied Science degrees specifically designed to develop the technical knowledge and skills required by employers in the areas of Electronics Engineering and Computer Aided Drafting. ITT Technical Institute has an advisory committee comprised of industry representatives and employers for each program of study. Elementary—Secondary Schools The Greater Tucson area is served by 17 school districts comprised of 132 elementary, 40 middle schools, and 22 high schools. The total school enrollment in Pima County for the 1997- 98 school year was approximately 123,000. The curricula in the secondary schools are designed primarily for college preparation. Other programs assist students with job placement, provide on-the-job experience combined with education. Below is list of the school districts located in Pima County. Tucson Unified School District (TUSD) serves approximately two-thirds of metropolitan Tucson families. With an enrollment in 1997-1998 of 63,335 students in Kindergarten - Grade 12, TUSD is the largest local school district in Pima County, educating 82 percent of all the children in Tucson and 50 percent of all students in Pima County. It has 18 magnet schools for Kindergarten - 12, five magnet high schools, and three campuses for special education needs. TUSD has 3,394 teachers in 104 schools covering 227 square miles. TUSD graduates were accepted for admission in a total of 242 colleges and universities in 41 states and 4 countries. Student/teacher ratio is 19 to 1. TUSD's exceptional educational services include tele-teaching and homebound instruction, four special programs for severely disabled students, GATE - Gifted and Talented Education program, speech and language programs, special education programs for youngsters with learning disabilities, emotional disorders, hearing impairments and physical challenges. TUSD touts that 34 TUSD seniors were named National Merit Scholarship finalists. College scholarships totaling more than $22 million were offered to TUSD graduating seniors, indicative of their accomplishments in the classroom as well as on the playing field and in areas such as fine arts,journalism or other elective offerings. GREATER TUCSON ECONOMIC COUNCIL EDUCATION AND WORK FORCE DEVELOPMENT Special Needs The Arizona State School for the Deaf and the Blind (ASDB) serves preschool through 12th grade children. The school is a no fee; state agency committed to assisting students with sensory impairments to succeed in adult life. The Work Education Program serves all levels and disabilities, preparing students for the workplace with a special focus on career planning. All students are required to complete the program before graduation. School To Work Programs/Academy Without Walls Arizona's School To Work System is an evolving network of business/school/community partnerships that give students, kindergarten through college, real choices about their futures. School To Work reinforces high academic skills while providing relevant learning through hands-on practical experience. Through career awareness, career exploration and career preparation, students leave school ready for both college and career development. The Pima & Santa Cruz Counties School to Work Partnership, headquartered in Tucson, Arizona, was organized in the spring of 1996 to administer two grants under the federal School to Work Opportunities Act of 1994. This legislation directs that all of America's children will be prepared for eventual economic self-sufficiency through exposure to career choices and pathways as a part of their educational experience. All school districts, colleges and universities, economic development offices, employers, professional organizations, labor unions, community agencies serving youth, governmental entities, apprenticeship sponsors are automatically part of the partnership. The goal of the partnership is to establish a system in which individual agencies and projects join in achieving the task set out under the law. Pima and Santa Cruz School to Work initiatives include contracts with existing groups whose services help tie curriculum-driven learning to work site applications, community-wide seminars, publications, describing existing successful school to work activities and a competitive mini-grant process. Private and Parochial Schools There are 35 private and parochial elementary and secondary schools with approximately 8,000 full time students. Private schools in Arizona are self-regulating. Some private schools qualify for accreditation by the North Central Association, the nation's largest accrediting agency, or by the Arizona Association of Independent Schools (AAIB), a member of the National Association of Independent schools. Other private schools may be approved by the Arizona State Committee on Accreditation. GREATER TUCSON ECONOMIC COUNCIL EDUCATION AND WORK FORCE DEVELOPMENT #of Full Time Grade #of Schools Equivalent Levels Elementary, Student/Teacher School District Students Offered Middle, High Ratio Tucson Unified School District 63,335 Pre K-12 74-20-10 19/1 www.tusd.k12.az.us Amphitheater School District 15,643 K-12 11-4-2 28/1 (K-6) www.sunl.wetmore.amphi.com/ 26/1 (7-12) Sunnyside Unified School District 14,600 Pre K-12 13-4-2 19/1 www.sunnysideud.k12.az.us Marana Unified School District 11,020 K-12 10-2-2 18/1 520-682-3243 Flowing Wells School District 6,232 K-12 6-1-1 25/1 520-690-2201 Catalina Foothills School District 4,801 Pre K-12 4-2-1 18/1 www.cfsd.k 12.az.us/ Sahuarita Unified School District 1,816 Pre K-12 2-1-1 19/1 520-625-3052 Vail School District 2,224 K-8 2-1-0 24/1 520-762-5181 Tanque Verde Unified Schools 1,625 K-9 2-1-0 25/1 www.isdnet.com/-tvsd Ajo Unified School District 538 K-12 1-1-1 17/1 520-387-5619 Continental School District 255 K-12 1-1-0 23/1 520-625-4581 San Fernando School District 28 K-8 1-0-0 20/1 520-823-4243 Empire School District 0 0 0 0 Ranching/mining area Tuition paid to nearby districts Indian Oasis-Baboquivari Unified 1,148 K-12 2-1-1 11/1 School District#40 Reddington Elementary School 0 0 0 0 Ranching/mining area Tuition paid to nearby districts _ Altar Valley Elementary School 853 K-8 2-1-0 15/1 Robles Junction Pima Accommodation District 160 K-6 1-0-0 16/1 Unincorporated area/Santa Catalina Mountains Source: 1998 Book of Lists and Jan 99 Pima County School Districts Book/Pima Co School Supt. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS BUSINESS OPERATING COSTS Tax structure is one very important element of a community's business climate. Governor Jane Hull is committed to reducing the tax burden upon business to induce expansion and interest new technology firms in Arizona. The Greater Tucson Strategic Partnership for Economic Development (GTSPED) has played an integral role in the coordination of southern Arizona's business and government leadership to create an environment in Tucson and Arizona conducive to the cultivation of capital intensive technology business. Specifically, the focus has been to reduce corporate income tax, personal property tax, and enhance Arizona's Research and Development Tax Credit to repeal limitations. In addition, Workforce Development and Training is also at the forefront as Arizona prepares for the challenges of the new millennium. State funding for training and skills enhancement of the work force has been key to business as jobs are added through the expansion or attraction of new firms to the area. Tax trends in Arizona are clearly downward. In the last 3 years— • The corporate income tax rate has plummeted from a high of 9.3% to 8% today, with the current legislature considering a further reduction. • The sales factor of the corporate income tax apportionment formula today has a 50% weight factor and efforts are underway to increase the factor to 70%, reducing the burden upon property and payroll. • Throwback rules of corporate income tax have been repealed. • Arizona Department of Commerce Workforce Development funding for training has grown from $3 million annually to $4.5 million annually today, with efforts to forge a $10 million pool of funds. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS TAX SUMMARY 1998-1999 Corporate Income Tax Arizona's income tax code is patterned after the Federal Internal Revenue Code. Arizona's corporate income tax rate has decreased to 8%. For multi-state corporations, aggregate income must be apportioned among the states. Only the amount properly allocated to Arizona is subject to the Arizona corporate income tax. For purposes of calculating income, Arizona utilizes a "Double Weighted Sales Factor" apportionment formula, which favors manufacturers. The unitary business principle gives corporations the privilege of filing a consolidated return if they are operationally integrated and united by direct or indirect stock ownership or control of 50% or more. Arizona has adopted a "waters edge" limitation, excluding the income of a foreign corporations unless the foreign corporation has 'nexus' (does business) with the state. Personal Income Tax A personal income tax is levied on residents and nonresidents earning income in Arizona, as well estates and trusts. Single or Married Filing Separate Returns: 0 - $10,000 = 2.88% of taxable income $10,001 - $25,000 = $288+3.24% of excess over$10,000 $25,001 - $50,000 = $774+3.82% of excess over $25,000 $50,001 - $150,000 = $1,729+4.74% of excess over $50,000 $150,001+ = $6,469+5.10% of excess over$150,000 Married Filing Joint or Head of Household: $0-$20,000 = 2.88% of taxable income $20,001 - $50,000=$576+3.24% of excess over$20,000 $50,001 - $100,000=$1,548+3.82% of excess over$50,000 $100,001-$300,000=$3,458+4.74% of excess over$100,000 $300,001 and over=$12,938+5.10% of excess over $300,000 Withholding Allowances Individuals can choose to withhold either: 10%, 20%, 22%, 28% or 32% of their federal withholding toward personal state income tax. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS TAX SUMMARY 1998-1999 Corporate Franchise Tax None Business Inventory Tax None Incorporation Fee For-Profit = $50; Non-Profit = $10 Unemployment Insurance Averages 1.05% on first $7,000 of payroll. Average cost per year is $73.50 Real Property Tax Commercial property is assessed at 25% of market value. Average tax rate is $15.94 per$100 assessed value. Personal Property Tax Assessment ratios and average tax rates are the same as real property, except unsecured personal property tax utilizes the prior year's real property tax rate. Personal property value is reduced by additional accelerated depreciation on new equipment acquisitions for a period of four years. Additionally, all businesses are allowed a $51,183 exemption on full cash value per each location. The Personal Property Manual is available on the Arizona Department of Revenue's website www.revenue.state.az.us. Real Estate Excise Tax None Sales Tax 5% State + 2% City = 7% Total Rental Tax 2% City = 2% Total Worker's Compensation Rate is assessed per$100. For specific State Fund rates see Market Rates and Economic Summary of Tucson Source: Arizona Department of Revenue,Tax Policy,Jan.99 GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS SALES & USE TAX State of Arizona & City of Tucson The State of Arizona imposes a 5% sales & use tax based on total gross income to all businesses selling a product in the state, but services are generally exempt. The City of Tucson adds an additional 2% sales tax bringing the total sales tax rate to 7% for businesses located within the City of Tucson. Any company that conducts business within the State of Arizona is not subject to State of Arizona sales taxes if: • the product the business sells is being shipped from an out-of-state location; and • the product the business sells is being shipped to an out-of-state location; In addition, all new and used machinery and equipment purchased for use in manufacturing or research & development processes are exempt from sales tax. Source: Arizona Department of Revenue,Tax Policy GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS WORKERS' COMPENSATION INSURANCE State of Arizona Statutory Obligations for the State of Arizona: The State of Arizona requires both Parts A & B as part of each employer's Workers' Compensation Insurance policy. Part 1 - Employers are required to provide Workers' Compensation Insurance to employees. Part 2 - Limits in liability requirements: $100,000 - Bodily injury by each accident $100,000 - Bodily injury by disease for each employee $500,000 - Policy limit for bodily injury by disease There is no additional cost to employers for providing the minimum limits in liability requirements mentioned above. Increases in liability limits are available to employers with nominal additional costs. STATE-MANDATED MINIMUMS: State of Arizona mandated minimums are computed as follows: $ 2,500 of wages x rate Occupation code rate (typically expressed per$100 wages) *Under this plan a company can qualify for a 35% deviation. = Minimum requirement When more than one occupation code applies to an employer, the State of Arizona uses the highest rated code as the minimum requirement. For specific rates by industry or occupation please contact GTEC. Arizona is a competitive state. These are manual rates. The actual rates will be 25-40% lower, after adjustments, depending upon the insurance company used. The information included in the Market and Economic Summary is an example of rates for those particular job descriptions. You may contact Bill Marshall directly at State Fund (520-292-4098)to find out what specific code your job categories fall into in order to determine your available rates. Source: State Fund Workers'Compensation Insurance GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS TELECOMMUNICATIONS SERVICE US West Communications is an example of one telecommunication service provider for the Greater Tucson area and for the 14 western states within its territory. US West provides the most modern and innovative services available through an advanced communications network that includes digital switching, interoffice and customer loop facilities. This network provides a full range of services including 2.4Kb to 1.54 Mb Digital Transmission, Integrated Service Digital Network (ISDN), and the most recent technology available for data and broadband fiber optic products and services. The Greater Tucson area is served by 21 central offices which switch calls and route them to their proper destinations. All of the offices have been upgraded to ESS or digital switches to provide the most modern switching services available; all of the central offices are interconnected by using digital facilities. In addition, 18 of the offices are interconnected via "state of the art" fiber optic facilities. The customer loop from each central office is served by copper and/or fiber optic cables and digital loop electronic equipment. US West has developed an elaborate copper digital network which is capable of providing high capacity digital service to any customer within the Tucson calling area. Long distance carrier POP's are centralized at the US West Main Central office. These carriers also have alternate POP's located in other Tucson area locations. US West representatives will work with a company to determine the closest POP to the company's potential locations once the site selection process has begun. There currently are over 920 miles of fiber optic cable laid in the Greater Tucson area, with plans for additions by the end of the year. Due to the increased competition among the providers, businesses in Tucson have the opportunity for quality telecommunication service, as well as competitive rates. The following telecommunications companies maintain fiber optic networks in the Greater Tucson area: • E.spire Communications 520-547-2274 • US West Communications 800-603-6000 • MCI Worldcom 800-888-0800 • AT&T 800-222-0400 • GST Telecommunications 520-618-4200 • Sprint 800-776-6200 The networks are equipped with the latest redundancy and disruption prevention technology available i.e., SONET, SHINS & SHARP Plus Network. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS TELECOMMUNICATIONS SERVICE The following taxes apply to inter and intrastate toll calls placed from Tucson, AZ. Interstate: • Federal Excise Tax = 3% Intrastate: • Federal Excise Tax = 3% • State Sales Tax = 5% • Local (Tucson)Tax = 2% The following taxes apply to lines (dial tone): • Federal Excise Tax = 3% • State Sales Tax = 5% • State Assessment = .19% • Emergency Telecommunications Tax = 2.35% • 911 Surcharge Tax = 1.25% • Telecommunications Relay Services = 1.1 • Customer Access Line Charge (CALC) = $3.50/first line = $8.72/all additional lines Source: US West 10/98 GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS GAS Southwest Gas, an investor-owned natural gas utility, purchases, transports and distributes natural gas to more than one million residential, commercial and industrial customers in an area covering most of Arizona and Nevada, and parts of California. Tucson serves as the headquarters for the Southern Arizona division, one of five regional divisions, which includes parts of southern, central and eastern Arizona. The gas is transported over pipelines of the El Paso Natural Gas Company, from which Southwest Gas purchases most of its supply. Natural Gas supplied by Southwest Gas is 100 percent domestically produced. Southwest Gas' staff of professionals is available to assist you. A designated representative is available to help you make the best energy choice, which could include special programs and energy-saving options for industrial customers. The effective tax rate in Pima County for Commercial gas use is 5.08%. 5.00% State Sales Tax .08% Arizona Corporation Commission Assessment 5.08% Total Applicable Gas Tax Monthly Customer Class Service Charge Cost/Therm G-5 Residential Gas Service $7.00 First 20 Therms = $.78525 Over 20 Therms = $.73981 G-25 General Gas Service-Small $18.50 $0.68054 (<7,200 therms per year use) G-25 General Gas Service-Medium $80.00 $0.59830 (>7,200 therms but<180,000 therms per year use) G-25 General Gas Service-Large $560.00 Peak Winter Month Usage Times (>180,000 therms per year use) $.061092 All Usage = $.42456 Rates Effective April 1, 1998 Source:Southwest Gas Corporation 02/99. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS ELECTRICITY Tucson Electric Power Company (TEP), a wholly-owned subsidiary of UniSource Energy Corporation, a Tucson-based utility engaged in the generation, purchase, transmission, distribution and sale of electric energy to retail and wholesale customers. TEP serves approximately 320,000 retail customers in Pima and Santa Cruz Counties. The Company has a generation capacity of 2,085 MW, serving a system peak demand of 1,763 MW. UniSource Energy's other subsidiaries include New Energy Ventures, LLC, one of the nation's leading representatives for energy buyers; Nations Energy Corporation, an independent power developer; Advanced Energy Technologies, Inc., a developer of renewable energy and distributed generation technologies; Southwest Energy Solutions, and SWPP Investment Co. Taxes South Oro Tucson Tucson Marana Valley Franchise 2.0% 2.0% 2.0% City 2.0% 2.5% 4.0% State 5.0% 5.0% 5.0% 5.0% Arizona Corporation Commission Assessment .14% .14% .14% .14% TOTAL 9.4% 9.64% 9.14% 9.14% GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS GENERAL SERVICE RATE NO. 10 Availability Throughout the entire area where the facilities of the Tucson Electric Power Company (TEP) are of adequate capacity and are adjacent to the premises. Applicability To all general power and lighting service unless otherwise addressed by specific rate schedules, when all energy is supplied at one point of delivery and through one metered service. Not applicable to resale, breakdown, standby or auxiliary service. Character of Service Single or three phase, 60 Hertz, and at one standard nominal voltage as mutually agreed and subject to availability at point of delivery. Primary metering may be used by mutual agreement. Rate A monthly net bill at the following rate plus any adjustments incorporated in this rate schedule: Billing Months Summer Winter Single Phase Service May-Oct Nov-Apr Customer Charge per month $6.00 $6.00 First 3,400 kWh per month @ $0.116003 $0.116003 All Additional kWh per month @ $0.102381 $0.095676 Three Phase Service Same as Single Phase Service, except a three phase additional charge of$7.58 per month shall apply to customers receiving three-phase service. Minimum Bill $6.00 for Single Phase Service $13.50 for Three Phase Service GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS Adjustment for Transformer Ownership and Metering a) When TEP owns transformers and energy is metered on primary side of transformers the demand shall be metered and the above schedule subject to a discount of 10.3¢ per kW per month of the demand each month. b) When customer owns transformers and energy is metered on primary side of transformers, the demand shall be metered and the above schedule subject to a discount of 20.6¢ per kW per month of the demand each month. c) When customer owns transformers and, at TEP's option, energy is metered on secondary side of transformers, the demand shall be metered and the above schedule subject to a discount of 10.3¢ per kW per month of the demand each month. Tax Clause To the charges computed under the above rate, including any adjustments, shall be added the applicable proportionate part of any taxes or governmental impositions which are or may in the future be assessed on the basis of gross revenues of TEP and/or the price or revenue from the electric energy or service sold and/or the volume of energy generated or purchased for sale and/or sold hereunder. RULES AND REGULATIONS Service Connection Charges 1. There shall be a $13.50 charge for the initial establishment of each new service for each customer. 2. There shall be a $13.50 charge for the re-establishment of each service for each customer. The standard Rules and Regulations of TEP as on file from time to time with the Arizona Corporation Commission shall apply where not inconsistent with this rate schedule. TEP may require a written contract and a minimum term of contract. Where the customer's utilization equipment is operated on a fixed schedule and can be readily and efficiently inspected by TEP to verify its demand and/or kWh usage, TEP may supply unmetered service under this rate schedule upon the basis of the demand and/or kWh usage determined by TEP. TEP reserves the right at any time to meter service previously supplied on an unmetered basis. The customer will be responsible for notifying TEP of any changes being made in the equipment connected to the system. The determined demand and/or kWh usage will be adjusted as equipment is changed. Optional rates are or may become available for certain classes of customers. Upon application for service or upon request TEP will assist the customer in selecting the rate schedule best suited the customer's requirements, but TEP does not guarantee that customers will be served under the most favorable rate schedule. Upon written notification of any material changes in customer's installation, load conditions, or use of service, TEP will assist in determining if a change in rates is desirable, but not more than one such change in rates will be made within any twelve month period. Source: Tucson Electric Power Company(Effective 9/1/98 for all usage on and after 7/1/'98) GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS LARGE GENERAL SERVICE RATE NO. 13 Availability Throughout the entire area where the facilities of Tucson Electric Power Company (TEP) are of adequate capacity and are adjacent to the premises. Applicability To all general power and lighting service on an optional basis when all energy is supplied at one point of delivery and through one metered service. The customer shall contract for a demand of not less than 200 kW. Not applicable to resale, breakdown, standby or auxiliary service. Character of Service Single or three phase, 60 Hertz, and at one standard nominal voltage as mutually agreed and subject to availability at point of delivery. Primary metering may be used by mutual agreement. Rate A monthly net bill at the following rate plus any adjustments incorporated in this rate schedule: Billing Months Summer Winter Demand Charge May-Oct Nov-Apr First 200 kW or less per month $1,709.91 $1,709.91 All additional kW per month @ $6.66 $6.66 Energy Charge All kWh @ $0.065038 $0.061786 Minimum Bill The Demand Charge, but not less than $1,709.91 per month. Billing Demand The maximum 15 minute measured demand in the month, but not less than 50% of the maximum demand used for billing purposes in the preceding 11 months, nor less than 50% of the contract demand, nor less than 200 kW. GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS Adjustment for Transformer Ownership and Meeting a) When TEP owns transformers and energy is metered on primary side of transformers the demand shall be metered and the above schedule subject to a discount of 10.3¢ per kW per month of the billing demand each month. b) When the customer owns transformers and energy is metered on primary side of transformers, the demand shall be metered and the above schedule subject to a discount of 20.6¢ per kW per month of the billing demand each month. c) When the customer owns transformer and, at TEP's option, energy is metered on secondary side of transformers, the demand shall be metered and the above schedule subject to a discount of 10.3¢ per kW per month of the billing demand each month. Tax Clause To the charges computed under the above rate, including any adjustments, shall be added the applicable proportionate part of any taxes or governmental impositions which are or may in the future be assessed on the basis of gross revenues of the Tucson Electric Power Company and/or the price or revenue from the electric energy service sold and/or the volume of energy generated or purchased for sale and/or sold hereunder. RULES AND REGULATIONS Service Connection Charges 1. There shall be a $13.50 charge for the initial establishment of each new service for each customer. 2. There shall be a $13.50 charge for the re-establishment of each service for each customer. The standard Rules and Regulations of TEP as on file from time to time with the Arizona Corporation Commission shall apply where not inconsistent with this rate schedule. TEP may require a written contract and a minimum term of contract. Optional rates are or may become available for certain classes of customers. Upon application for service or upon request TEP will assist the customer in selecting the rate schedule best suited to the customer's requirements, but TEP does not guarantee that customers will be served under the most favorable rate schedule. Upon written notification of any material changes in customer's installation, load conditions or use of service, TEP will assist in determining if a change in rates is desirable, but not more than one such change in rates will be made within any twelve month period. Source: Tucson Electric Power Company(Effective 5/1/98 for all usage on and after 7/1/98) GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS LARGE LIGHT AND POWER RATE NO. 14 Availability Rate No. 14 shall be available for any customer within the service territory of the Tucson Electric Power Company (TEP) if TEP has facilities of adequate capacity and a written contract, covering such matters, as TEP and customer shall deem appropriate. Character of Service Service shall be three phase, 60 Hertz, and shall be supplied directly from any 46,000 volt, or higher voltage, system through distribution facilities used exclusively to serve Rate 14 customers at a delivery voltage of not less than 2400/4160 volts and delivered at a single point of delivery unless otherwise specified in the contract. Rate A monthly net bill at the following rate plus any adjustments incorporated in this rate schedule: Billing Months Summer Winter Demand Charge May-Oct Nov-Apr Per kW of Billing Demand per month $10.17 $10.17 Energy Charge All kWh @ $0.046935 $0.044588 Billing Demand The billing demand shall be specified in the contract, but shall not be less than 3,000 kW. Additionally, the billing demand shall not be less than 66.67% of the maximum billing demand in the preceding eleven (11) months, unless otherwise specified in the contract. Power Factor Adjustment The above rate is subject to a discount or a charge of 1.3¢ per kW of billing demand for each 1% the average monthly power factor is above or below 90% lagging to a maximum discount of 13.0¢ per kW of billing demand per month. Tax Clause To the charges computer under the above rate, including any adjustments, shall be added the applicable proportionate part of any taxes or governmental impositions which are or may in the future be assessed on the basis of gross revenues of TEP and/or the price or revenue from the electric energy or service sold and/or the volume of energy generated or purchased for sale and/or sold hereunder. Source: Tucson Electric Power Company(Effective 9/1/98 for all usage on and after 7/1/98) GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS WATER Groundwater is the major source of water for the greater Tucson area. Tucson Water provides 85% of the potable water supplies in the Tucson Metropolitan area. Tucson water supplies about 115,000-acre feet per year of potable water and 10,000 acre feet of reclaimed wastewater per year for non-potable uses. The City of Tucson has a Central Arizona Project water allocation of 138,920-acre feet per year, which is planned, for long term use and it is anticipated that the nature of that use will be sorted out in the next few years. Tucson has received a designation of assured water supply from the State of Arizona. The primary area Tucson Water does not serve is northwest of the city in the towns of Marana and Oro Valley. In addition to Tucson Water, Metro Water and Flowing Wells Irrigation also service the Tucson area. Water Use and System Capacity Current Peak Utilization Potential Storage Capacity 152 million gallons/day 200+ million gallons Water Treatment Groundwater is treated through chlorination. Water Service Charges 1. Monthly Minimum Charge • Applicable to all Customer Classes and Includes a 3 Ccf Minimum Usage Allowance Meter Size (Inches) Minimum Charge 3/4 $ 5.30 1 $ 6.40 1-1/2 $ 9.50 2 $ 14.00 2-1/2 $20.00 3 $25.00 4 $42.00 6 $82.00 8 $123.00 10 $185.00 12 $305.00 2. Monthly Water Use Rates Customer Class Winter Rate Summer Rate Commercial Basic Volume Charge $1.40/Ccf $1.40/Ccf Summer Surcharge-Tier 1 $0.95/Ccf Summer Surcharge-Tier 2 $0.25/Ccf Industrial (5+ MG/Month) Basic Volume Charge $1.21/Ccf $1.21/Ccf Summer Surcharge-Tier 1 $0.95/Ccf Summer Surcharge-Tier 2 $0.25/Ccf GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS Note: Summer Surcharge-Tier 1 is For All Use During Summer Months in Excess of the Average Usage Experienced During the Previous Six-Month Winter Period From November Through April. Summer Surcharge-Tier 2 is For All Use During Summer Months in Excess of 150% of the Average Usage Actually Experienced During the Previous Six-Month Winter Period From November Through April. 3. Isolated Area Service Charge • Applied to Customers Living Three-Miles or More From a Secondary or Backup Source of Water. • Monthly Charge = $0.35/Ccf 4. Central Arizona Project Surcharge • Applied to all Customers • Monthly Charge = $0.02/Ccf 5. Example Water Bill Calculation for Commercial Customer Class with 1 inch Service Winter Bill of 100 Ccf Summer Bill of 175 Ccf Item Rate Item Rate Monthly Service Charge, 1 Inch Meter Monthly Service Charge, 1 Inch Meter (Including 3 Ccf Minimum (Including 3 Ccf Minimum Usage Allowance) = $6.40 Usage Allowance) = $6.40 Basic Volume Charge Basic Volume Charge (Including 3 Ccf)97 Ccf x$1.40 = $135.80 (Including 3 Ccf) 172 Ccf x $1.40 = $240.80 Central Arizona Project Surcharge Central Arizona Project Surcharge 100 Ccf x$0.02 = $2.00 175 Ccf x$0.02 = $3.50 Total Monthly Bill = $144.20 Total Monthly Bill = $328.20 Tax (State 5%, City 2%, Total 7%) = $10.09 Tax (State 5%, City 2%, Total 7%) = $22.97 Summer Surcharge Tier 1; 75 Ccf x$0.95 $71.25 (175 Ccf- 100 Ccf) = Tier 2; 25 Ccf x$0.25 $6.25 (175 Ccf-(1.5 x 100) = Total Customer Monthly Winter Bill = $154.29 Total Customer Monthly Summer Bill = $351.17 GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS Reclaimed Water Service Charges 1. Monthly Service Charge Meter Size(Inches) Cost 3/4 $ 4.80 1 $ 5.80 1-1/2 $ 8.60 2 $ 13.00 2-1/2 $ 18.00 3 $ 23.00 4 $ 38.00 6 $ 74.00 8 $111.00 10 $167.00 12 $275.00 2. Monthly Reclaimed Use Charge = $1.09/Ccf • 1 Ccf= One Hundred Cubic Feet or 748 gallons Source: City of Tucson-Tucson Water O2/99 GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS WASTEWATER Pima County Wastewater Management (the local provider) has over 2,700 miles of sewers in Pima County, mostly within and around the City of Tucson area. Public sewer sizes vary from 6-inch diameter to 78-inch diameter, with 8-inch diameter being the minimum size for new public sewer construction. An 8-inch diameter sewer at minimum slope has a total capacity of about 350 gallons per minute. To reserve the full capacity of a public sewer for a single development would be a rare occurrence. If a project has significant flow (quantity) to the sewer, Wastewater Management is ready to discuss site specific options. System Utilization and Capacity Current System Utilization Current System Capacity 61 million gallons per day 66 million gallons per day System Expansion There are expansion plans in the works for the system. 6 million gallons per day capacity is currently being added to the Roger Road Treatment Facility. Within the next 4 years, it is anticipated that 12.5 million gallons per day capacity will be added to the Ina Road Treatment Facility, for a planned total expansion of 19.5 Million Gallons Per Day. Rate Schedule Monthly bills are computed and charged to wastewater customers by user class as set forth in the table below, and are based on the average wastewater strengths shown. Wastewater is not subject to any state or local tax rates. Note: 1 Ccf= 748 Gallons GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS Average Wastewater Strength High User Fee User (Pounds per Ccf) Strength Rate Class Class Name COD SS Factor ($lCcf) 3C Auto Body& 10.35 2.15 2.10 1.79 Fender Repair 3K Mortuary 3.63 0.94 1.09 .93 3N Laundromat 3.74 0.83 1.09 .93 4E Pet Clinic 3.87 1.47 1.20 1.02 4G Restaurant, with 8.16 3.45 2.03 1.73 seating&china 4H Restaurant, 10.52 3.40 2.32 1.98 fast food 5A Car Wash, 3.36 1.85 1.19 1.01 self-service 5C Bottling 8.02 1.29 1.68 1.43 Company 5F Printing; 3.83 0.30 1.01 .87 Copying 5G Electrical Component 3.79 1.15 1.14 .97 Manufacturer 51 industrial 3.45 0.93 1.06 .91 Laundry 5J Bakery 18.21 5.62 3.65 3.11 5K Miscellaneous 11.51 2.85 2.34 1.99 Food Processor 5L Chemical, 5.19 0.77 1.25 1.06 Pharmaceutical 5M Meat Packing; 5.86 7.52 2.38 2.03 Tallow Processing 5S Car Wash, 5.01 0.74 1.23 1.05 Full Service - All Other 2.14 1.52 1.00 .86 Customer Classes Source:Pima County Wastewater Management 02199 GREATER TUCSON ECONOMIC COUNCIL BUSINESS OPERATING COSTS MARKET AND ECONOMIC SUMMARY OF TUCSON,AZ POPULATION Pima County May-99 841,739 City of Tucson May-99 479,363 TAXES Corporate Income Tax 1999 8%of State Tax Income Corporate Franchise Tax 1999 NONE Inventory Tax 1999 NONE Personal Income Tax 1999 2.9%-5.1% Sales Tax 1999 7% State 1999 5% City and County 1999 2% Property Tax Avg.Tax Rate 1999 $15.98 per$100 of assessed value Commercial Assessment Ratio 1999 25%of Fair Market Value LABOR Civilian Labor Force Apr-99 390,797 Unemployment Rate Apr-99 2.4% Unemployment Insurance Avg.Contribution/Employee 1999 1.05%of 1'$7,000 Avg.Cost/Year 1999 $73.50 Worker's Compensation Aircraft Engine Manufacturing 3826 1999 $0.90/$100 Airplane Manufacturing 3830 1999 $1.48/$100 Biomedical 8017 1999 $1.71/$100 Clerical 8810 1999 $0.31/$100 Electrical Component Manufacturing 3681 • 1999 $1.12/$100 Engineers 8601 1999 $0.61/$100 Optical Goods Manufacturing 4150 • 1999 $1.06/$100 Plastic Manufacturer-Molded Products 4484-10 1999 $4.12/$100 Software Development-Computer System Design 8803 1999 $0.13/$100 EDUCATION Percent with 12 years or more attainment 1990 80.50% Percent with 16 years or more attainment 1990 23.30% Per Capita Expenditure 1990 $715 UTILITY RATES Electricity Costs for a small utility customer assuming the following kW=30 KWhr=6,000 Monthly Bill 1997 $665.20 REAL ESTATE Avg. Price/SF for Improved Industrial Park Lot 1997 $2.00 Avg. Office Lease Rate/SF(10,000+SF) 1997 $16.00 full service Avg. Industrial Lease Rates/SF High Tech R&D 1997 $6.25 nnn General Manufacturing 1997 $5.40 nnn Warehouse 1997 $4.50 nnn Avg. Retail Lease Rate/SF 1997 $8.00-$16.00 nnn Avg.Construction Cost/SF(finished construction costs/excluding land) Manufacturing Plant 1997 $55.00 Warehouse 1997 $48.00 Suburban Office 1997 $80.00 Vacancy Rates at a Glance •� Office 1997 10.81% Industrial 1997 11.80% Retail 1997 8.22% AIRPORT INFORMATION Total Airlines 1999 9 Daily air Flights 1999 58 Distance to CBD(Miles) 1999 7 MISCELLANEOUS Personal Income(Per Capita projected) 1999 $23,086 _. Avg.Annual Wage 3" Qtr 98 $• 25,974 Median Home Sales Price Fed-99 $109,500 Average monthly apartment rent 4th Qtr 98 $509 ACCRA Cost of Living Index 4th Qtr 98 9• 8.3 Updated 06/03/99 GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS 1 f TAX REDUCTION PROGRAMS As the rising star of the New West, Tucson is poised to be _ a prosperous city of commerce and industry for the twenty-first century and beyond. The City of Tucson, Pima County, and the private business community are committed to a pro-business environment that will , promote and sustain economic and job growth for Greater • Tucson. • The community understands the value of business growth and welcomes the opportunities new citizens and new businesses bring. Greater Tucson and the State of Arizona have a tradition of working with the business community to address local industry needs. Since 1991 Arizona has seen an overall decrease in tax burden. Pima County's overall average property tax rate has been on the decline over the last several years and the trend is expected to continue, making Tucson the affordable choice as a city for the technology of tomorrow. BUSINESS ADVANTAGES IN GREATER TUCOSN TO HELP YOUR BUSINESS CUT OVERALL COSTS ASSOCIATED WITH DOING BUSINESS • No Unitary Tax • No Inventory Tax • Commercial Lease Tax is being phased out • Sales & Use Tax Exemption • Accelerated Depreciation • Enterprise Zones • Foreign Trade Zones • Research & Development Expenses Credit • Pollution Control Equipment Credit • Construction Materials Credit • Defense Restructuring Assistance Program & Credits • Technology Innovation Funding • Industrial Development Bonds • Job Training Funds • Job Service Assistance Accelerated Depreciation of Personal Property The State of Arizona offers a program that accelerates the percent good factor of personal property (i.e. business equipment) in an effort to decrease the overall personal property tax burden. In 1995, Arizona established adjusted (accelerated) depreciation schedule amounts to be used to value specific classes of personal property. Arizona Revised Statutes 42-235.02 established the criteria for accelerated depreciation of personal property. The 1998/99 Arizona Legislature enacted a business tax reduction package that included further reductions in the business personal property tax. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS The average real property tax rate for Pima County is $15.98 per $100 of assessed value. Arizona's property tax system classifies property according to its usage. Each class of property is assigned an assessment ratio, pursuant to state law. All classifications use the same tax rates. The three most common classifications associated with businesses are Class 3R, Class 3P, and Class 5. Class 3R is commercial and industrial real property not included in other classes (some properties may use special formulas to determine individual values). Class 3R is assessed at 25%. Class 3P is commercial and industrial personal property. The first $50,000 of the property's full cash value is exempt and the remainder exceeding $50,000 is assessed at 25% of its full cash value. Class 5 is the assessment ratio for residential property not used for a profit. Residential property is assessed at 10% of the full cash value of the home. Personal property is classified according to its assigned expected life. Expected lives of personal property are expressed as the number of years that items of personal property in each category are typically retained in use with normal maintenance. Depreciation of personal property is defined as the reduction in market value caused by normal use of an item of property over its expected useful life. The remaining useful life of an item after depreciation is expressed as "percent good". Enterprise Zone Property Tax Reclassification & Income Tax Reduction Property Tax Reclassification: Manufacturing companies locating in one of Greater Tucson's two zones may qualify for an 80% reduction real and personal property taxes for a 5 year period. The reclassification changes property normally assessed at 25% of full cash value to 5% of full cash value. The 5% assessment ratio will be in effect for up to 5 years. Please note the reclassification applies to the associated primary tax rate. In 1989, the Arizona House and Senate adopted legislation setting up an enterprise zone program for the state. According to State of Arizona statute, the business must meet the following conditions: • It must be located in one of the state-designated Enterprise Zones • It must be designated as a manufacturing operation • It must be either a minority-owned, woman-owned, or a small business (100 or fewer employees at the Tucson facility or gross sales of$4 million or less). Income Tax Credit: Any employer located in an enterprise zone (with the exception of businesses where tangible personal property is sold at retail) may be eligible for up to $3,000 per qualified employment position over a period of three years. To qualify, thirty-five percent of the net new eligible employees must live within an enterprise zone in the same county as the business when hired. A qualified employment position: • is a full-time permanent job • pays an hourly wage above the `wage offer by county", which is $6.81 for Pima County as of January 1, 1998 through December 31, 1998. • provides health insurance to employees for which the employer pays at least 50 percent. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS The Enterprise Zone credits for qualified employment positions are equal to: • One-fourth of the taxable wages paid to an employee in a qualified employment position, up to 5500 per net new position, in the first year or partial year of employment. • One-third of the taxable wages paid to each previously qualified employee, up to $1,000 per employee, for the second year of continuous employment • One-half of the taxable wages paid to each previously qualified employee, up to X1,500 per employee, in the third year of continuous employment. Active Foreign Trade Zone Designation The United States Foreign Trade Zone Program was created by special legislation of the United States Congress in 1934 in order to stimulate international trade and create jobs as well as promote investment in the United States. Companies conducting business within an activated zone or sub-zone may bring foreign and domestic product into the activated zone for purposes that include, but may not be limited to: • storage • testing • re-labeling • displaying • manufacturing • for the purpose of eventual entry into the U.S. market or for exportation from the U.S. A popular benefit of operating within an active foreign trade zone is the deferred customs duties and federal excise taxes while merchandise is in the zone. Utilization of the zone may effectively reduce or eliminate these duties or taxes. The state of Arizona offers additional tax reduction opportunities to companies with facilities in active foreign trade zones. Pima County has two activated zones: Foreign Trade Zone No. 174 and Zone No. 48. Companies operating within a zone receive an 80% reduction in both real and personal property taxes. The assessment ratios for the taxes are reduced from twenty-five percent to five percent. This tax benefit is afforded to the company for the length of time the company is located in a zone. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS In Tucson and Pima County, the City of Tucson is the operator of Foreign Trade Zone 174. Zone 174 encompasses five different sites strategically situated in Tucson. The five sites represent over 330 acres of available industrially zoned land with existing buildings. Foreign Trade Zones in Tucson oPhoenix.AZ-ii To iCtS hn9eles.CA• ".'miles I — 4C. 1 } N.d.y ahh. p....,...„..,....... ._ } Businctus Disititt , ‘-'1 -41*'-'14t, 4, I "B I :Emit; ys ti _ i hilitasisiam...._ I t -\---, *, A_ I „ ,9 i 33£ „.. 0 A.„ a T, +r TO MOW MeXICO-05 Rees To Guaymas.Sonora.Meido0•318 rtes To El Paso.Tx• miles Central Business District Location (CBD) Construction of a new business facility in the Central Business District may entitle a firm to a property tax abatement on all new improvements for up to 8 years. The CBD also offers a mixed use and master planned development, the Downtown Commerce Park. The park is approximately 48 acres with lots ranging from .63 to 5.46 acres (larger parcels are available). Current zoning allows for garden office, research and development, light industrial, distribution and service related retail business. The convenient location of the park allows for easy access to 1-10 and 1-19 and is only four miles from Tucson International Airport. The park is located in what has been designated as a "high growth area" and the specific area's population is projected to reach 126,400 over the next few years. Airport Facility Location Aerospace firms locating on property at the Tucson International Airport are allowed property tax reductions in accordance with Arizona Revised Statutes. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS Defense Restructuring Assistance Program Prime defense contractors that diversify their activities may qualify for up to a total of $7,500 per job in state income tax credits. These income tax credits are over a 5 year period based on net increases in employment above established baselines. In addition, these contractors may also qualify for income tax credits on up to 40% of property taxes paid on jobs retained or created as well as accelerated depreciation schedules on machinery and equipment switched to commercial activities and on capital investment for commercial activities. Qualified contractors must have at least $5 million in Department of Defense contracts to be eligible for this program. Research and Development Expenses Credit Qualified expenses may be carried forward for 15 years and carry a maximum credit of $100,000 for the first year, increasing to $500,000 by the fourth year. Pollution Control Equipment Credit Credit is equal to 10% of the purchase price of real and personal property that is used, constructed or installed to meet or exceed EPA, DEQ, or local pollution control requirements for air, water, or land. The maximum credit is $500,000 with a five year carry forward of credit. Credit for Construction Materials Incorporated into Qualifying Facilities Credit is 5% of the purchase price of materials incorporated into a new building or structure, or expansion of an existing building or structure, located in Arizona, predominantly used for manufacturing, fabricating, mining, refining, metallurgical operations, or research and development which as a total construction cost greater than $5 million. Recycling Equipment Credit Credit is for 10% of the installed cost of solid waste recycling equipment and is limited to the lesser of 25% of the tax liability or $5,000 per tax year. This credit allows for a 15 year carry forward. Recapture provisions will be instituted if equipment is used for less than 5 years. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS Special Financing Programs -41 Revolving Energy Loan for Arizona (RELA) The Arizona Department of Commerce Energy Office offers this loan fund to qualified energy- related projects and companies. Among the targeted recipients of Revolving Energy Loans for Arizona (RELA) are companies which purchase energy conserving products. Loan requests range from $10,000 to $500,000, with a maximum level of 60% of total project costs. The RELA program offers a 5 percent interest rate and variable term depending on energy payback. The Arizona Department of Commerce Energy Office conducts a technical review as part of the application process. Additional Business Financing Opportunities Private Activity Bonds Pima County and the City of Tucson both offer the use of Private Activity Bonds. Both governmental entities will support a submission to their respective Industrial Development Authorities for the benefit of any qualified prospect. Federal law limits small-issue, tax-exempt, Private Activity Bonds to $10 million. A user of the bond proceeds may not invest more than $10 million within the jurisdiction of the issuing municipality for three years before and three years after the private activity bond issuance. Requests exceeding $10 million will be considered taxable. Nationwide, a company may have up to $40 million in Private Activity Bonds outstanding at any one time. Business Development Finance Corporation (BDFC) BDFC offers affordable financing for working capital, equipment, and facilities. Loans can range between $10,000 to $1,000,000 depending on project criteria. BDFC offers terms of 5, 10, or 20 years and low interest rates. BDFC also offers fixed asset financing for projects ranging from $120,000 to $3,000,000. Fixed asset financing through BDFC is at below market fixed interest rates. BDFC has the ability to get 48-hour approval from SBA on 504 loans that meet their criteria. New loan programs allow BDFC to provide 100% financing for projects within the City of Tucson. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS Arizona Small Business Innovation Research (SBIR) and Small Business Technology Transfer(STIR) Program The Small Business Innovation Research (SBIR) and its partner program the Small Business Technology Transfer (STIR) programs were established by the federal government in 1982 and 1992 in an effort to fund research and development of innovative companies with commercialization potential. The programs are aimed at high technology small businesses and assist companies through cooperative R&D conducted by the business and a federally funded or non-profit research institution. The federal program is implemented in three phases: • Phase 1 is to evaluate the scientific technical merit and feasibility of an idea for up to six months. • Phase 2 is to expand on the results of and further pursue the development of phase 1 for up to 2 years. • Phase 3 is for the commercialization of the results of phase 2 and requires the use of private or non-SBIR federal funding. Typical federal awards are $50,000 for phase 1 and up to $750,000 for phase 2. The Arizona Commerce and Economic Development Commission has the ability to allocate up to $500,000 per fiscal year for the program. Qualified companies may receive up to two loans during a twelve-month period. The loans are used by Arizona businesses after the completion of phase 1 in order to continue R&D efforts while awaiting phase 2 federal grant monies. This "bridge" funding, provided by the State of Arizona program, allows a company the flexibility to maintain the same level of momentum on a project with out loosing a crucial funding source. A qualified company may receive a maximum of$50,000 per award. GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS Banking In addition to the above mentioned financing alternatives, Greater Tucson has a wide range of banks and lending services which offer a full range of banking services to meet the needs of small, mid-sized and large businesses. Business loans for equipment, land and buildings, construction, and cash management are designed to meet the specific needs of growing businesses today. With streamlined approval processes resulting in fast turnaround, businesses can have the loans in place when it's needed. The Tucson area also has approximately twelve active SBA approved lenders which all together issued over 690 SBA-guaranteed loans in Pima County totaling nearly $22 million (1996). Bank One Arizona 2 East Congress St., Fourth Floor 33 Tucson branches Tucson, AZ 85701 (502) 792-7150 Bank of America Arizona 33 North Stone Ave. 27 Tucson branches Tucson, AZ 85701 (520) 792-7715 Wells Fargo 150 North Stone Ave. 29 Tucson branches Tucson, AZ 85701 (520)792-5441 Norwest Bank One South Church Ave. 14 Tucson branches Tucson, AZ 85701 (520)620-3609 National Bank of Arizona 335 North Wilmot Rd. 3 Tucson branches Tucson, AZ 85711 (520)571-1500 Arizona Bank 120 North Stone Ave. 14 Tucson branches Tucson, AZ 85701 (520)620-3268 Northern Trust Bank of Arizona 6373 E. Tanque Verde Rd., #100 Tucson,AZ 85715 (520)298-3300 Liberty Bank and Trust 7225 North Oracle Rd. Tucson, AZ 85704 (520)544-4700 Bank of Tucson 4400 East Broadway Blvd. 1 Tucson branch Tucson, AZ 85711 (520)321-4500 • ar• GREATER TUCSON ECONOMIC COUNCIL TAX REDUCTION PROGRAMS Workforce Development and Job Training Funding In February of 1993 the State of Arizona established the Work Force Recruitment and Job Training Bill to provide both new and expanding businesses in Arizona with training and retraining opportunities. The Arizona Department of Commerce houses the Work Force Recruitment and Job Training Council, the entity which allocates the job training funds to qualifying businesses and develops the guidelines for the program. The program funding was increased by the 1998 Arizona Legislature to $5,000,000. Costs eligible to be covered by the funds include: recruitment, screening, assessment, interviewing, new employee process costs, training design, materials design and acquisition, trainer costs, equipment, management and administration of training project, limited travel. The Arizona Department of Commerce coordinates the program administration with training providers, such as Pima County Community College. GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION ear TUCSON - MEXICO CONNECTION Located 60 miles south of Tucson, Greater Tucson's proximity to Mexico provides US HEitmasiLLO companies several unique • t dosega• opportunities for growth and CHIHUAHUA profit. The rapidly growing economies of Mexico, Latin and Central America offer business a • LA PAZ I hiAZA ILAN lucrative market for producers of MEXICO computer software and LOS C*IOS+ hardware, telecommunications CANCUN LJA�LAJARAsystems and related products, PUERTO VALLARTA • ra and consumer electronics. victAc Aur _ Technology companies can cultivate new business rAXACA ACAPULCO • opportunities in the fields of environmental technology, bioindustry and optics. By locating operations in Tucson and Pima County, Arizona, firms can take advantage of the developing technology climate in Tucson, joining global business leaders such as Raytheon Missile Systems, AlliedSignal, Burr Brown Corp., Universal Avionics, Opto Power Corporation and many more. Companies relocating or expanding to Tucson can take advantage of a newly developed business assistance program through the City of Tucson called the Tucson Maquila Supplier Development program (TMSD). The TMSD is designed to help local companies develop supplier relationships with the robust Maquiladora, or "twin plant" industry. In the State of Sonora, Mexico alone, over 250 maquila's exist, employing over 90,000 in the cities of Guaymas, Nogales, Hermosillo, Ciudad Obregon, and others. Another important potential benefit to companies looking to the southwest is the maquila opportunity. Companies involved in manufacturing through the maquila program, using experienced and respected companies such as Offshore International or Collectron of Arizona, enjoy the advantages of doing business in Mexico with the ability to maintain key technical operations in the United States. Research and development functions, final test and assembly, warehouse an distribution, as well as management oversight is easily housed in Tucson, and offers expanding companies access to highly skilled labor, cutting edge information and telecommunications technology, a highly developed air, rail, and ground transportation infrastructure, and ties to one of the most vibrant business communities in the west. GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION A growing part of this region's economy is built around the maquila industry. The TMSD Activity Number of Maquila's q rY program provides a service to maquilas by Electrical/Electronic 460 identifying suppliers who can reliably produce Materials &Accessories high quality goods at a competitive cost, while keeping pace with the rapid growth and Electrical/Electronic 140 changing needs of the industry. Machinery&Equipment The program is designed to cost-effectively Automotive Equipment reduce the large maquilas' risk by objectively &Accessories 206 assessing supplier capabilities and raising suppliers' performance to meet the maquilas' Wooden, Metallic Furniture p p &Parts 338 most pressing requirements. As an objective, non-profit third-party, with substantial Textiles&Apparel 797 business and engineering talent, Industry (Source: Twin Plant News) Network Corporation (INC) is strategically positioned to serve as supplier surveyor, assessor and process improvement manager, thereby avoiding potential conflict-of-interest concerns or pre-contract maneuvering typical of many buyer-supplier relationships. The Tucson Maquila Supplier Development Program goes beyond basic matchmaking to provide a multi- faceted service including; assistance in identifying appropriate suppliers; and competitiveness assessments against global standards and provide access to the resources needed to meet those standards. (Source: City of Tucson-Office of Economic Development,Bill Bourland) In support of the TMSD program, the Greater Tucson Economic Council is working with the maquila operators of Sonora to identify vendor needs that are not available in Greater Tucson currently. A collaborative effort to recruit necessary suppliers to the region is underway, led by GTEC, to develop a deeper network of suppliers for local manufacturing and technology companies. Key Markets in Sonora, Mexico Guyamas: Located approximately 320 miles southwest of Tucson, on the Gulf of California. the Guaymas/Empalme region is home to 275,000. Fishing, agriculture, and the maquiladora industry are predominate. A four-lane highway runs from Guaymas through Hermosillo and Nogales. TelMex == has recently installed a fiber optics network providing modern telecommunication for business - and residents. The Port of Guaymas is a deep- " water port well equipped for importation or exportation of goods via sea. Augat Automotive, IBM, Data General, and ITT Power Systems have all been involved in the maquila program in Guaymas. (Source for information and photo: Offshore International) GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION Nogales: Located 60 miles south of Tucson, with a population of 300,000, the key industries of this neighboring community are tourism and the maquiladora industries. With a young population (84% are under 40 years old), Nogales is an important commercial opportunity for many Tucson businesses. Hermosillo: Located 175 miles south of Tucson, this semi-tropical climate enjoys a population of 700,000. A modern airport with daily flights to and from Tucson make accessing clients easy. Infrastructure developments include satellite telecommunications modules, and a modern divided highway to Nogales. Education and health care institutions continue to grow in numbers. Eighty-eight percent of the population is under 44 years of age. While primarily an agricultural economy, Hermosillo is home to Ford Motor Company and AMP Incorporated. Ciudad Obregon: This dynamic market has a population of 410,000. Located 329 miles south of Tucson, Ciudad Obregon is home to Coleman Products (Chrysler Motors), Ekco Housewares, American Safety Razor Co., and Midcom, Inc. Daily commercial flights to Tucson, and passenger train service to Nogales make Ciudad Obregon an attractive and accessible market. (Source for information on Nogales, Hermosillo, and Ciudad Obregon: Collectron of Arizona) The North American Free Trade Agreement and Tucson * * * * * * The North American Free Trade Agreement between the * * * * * *********** government of Canada, the government of the United * * * * * * *********** Mexican States and the government of the United States *********** of America has important implications for U.S. businesses. Tucson is perfectly positioned for companies interested in maximizing the benefits of this important multinational agreement. The objectives of NAFTA, as stated in the formal agreement are to: " (a) eliminate barriers to trade in, and facilitate the cross border movement of, goods and services between the territories of the Parties; (b) promote conditions of fair competition in the free trade area; (c) increase substantially investment opportunities in their territories; (d) provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory; (e) create effective procedures for the implementation and application of this Agreement, and for its joint administration and the resolution of disputes; and (f) establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement. GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION Mexico is Arizona's leading export destination, with Canada the third largest export destination. From 1993 through 1996, exports have increased from $1.8 billion to $2.8 billion. Projected impacts over the fifteen-year NAFTA implementation are strong. Arizona exports to Mexico are expected to reach $4.5 billion. NAFTA related job growth in Arizona, as estimated by the Arizona Department of Commerce, are high, and mainly in higher wage and skill jobs. Approximately 14,000 jobs were created or supported in Arizona since the implementation of NAFTA began, with 8,300 jobs accounted for by trade with Mexico. To capitalize on business opportunities with Mexico and Canada, Arizona has undertaken several initiatives to maximize the opportunities made available by NAFTA. These include: • Improving the efficiency of border ports of entry through implementation at the state and local level. • Upgrading U.S. 93 to a four lane divided highway, and building a new bridge over the Hoover Dam, which completes the improvements to the CANAMEX corridor. This north- south transportation corridor links western Canada, the United States, and Mexico. • Constructing other transportation infrastructure improvement throughout Arizona to assure fast, safe and efficient flow of trade. Each year since the passage of NAFTA, the legislatures of Arizona and the Mexican State of Sonora have met in joint protocol sessions to address the challenges and trade opportunities availed by the trade agreement. A regional economic development plan, called Strategic Economic Development Vision was created to more fully integrate Arizona and Sonora as an economic region with significant competitive advantages in global markets. Borne from this plan are the development of a Bi-national Education Institute, technology and engineering exchange programs, various public health and environmental projects, and a regional tourism center. Recently, the governors of Arizona and Sonora announced the formation of four bi-national industry clusters: Manufacturing, agribusiness, health services, and tourism. This cooperative effort focuses on a regional approach to economic development by promoting the industry from within itself, overcoming common obstacles to growth allow companies to increase their own competitiveness, thereby broadening the industry as a whole. Successful implementation of this bi-national cluster concept can enhance the regions' position as globally visible and competitive, increase capital investment into the region, and develop new markets for the goods and services offered by the region. GREATER TUCSON ECONOMIC COUNCIL TUCSON — MEXICO CONNECTION Arizona is actively involved in a variety of programs that will benefit business relocating or expanding to Tucson, Arizona including: Arizona-Sinaloa Commission In an effort to enhance the economic relationship between the States of Arizona and Sinaloa, former Arizona Governor Symington established the Arizona-Sinaloa Commission consisting of public and private officials who work together to increase business and trade opportunities for and between the two states. Local Resources for Tucson Companies Doing Business in Mexico Greater Tucson Economic Council Greater Tucson Economic Council's mission is to attract and retain quality jobs for Greater Tucson. GTEC services as the focal point for the public and private sectors to identify economic issues, and to coordinate and facilitate relevant economic development activities that are critical for the financial health of the community. Greater Tucson Economic Council 33 N. Stone Ave, Suite 800 = Tucson, AZ 85701 ,-- 1-800-374-4769r www. futurewest.com = wa,TE G CSO ECONOMIC COUNCIL y City of Tucson Office of Economic Development, International Services Department The Office of Economic Development's (OED) mission is to enhance business growth within the City utilizing the resources and skills of Tucson's citizens and neighborhoods. OED facilitates this mission by interacting with business and neighborhoods through a wide range of services designed to reduce poverty through employment resulting from business retention and expansion. City of Tucson Office of Economic Development - - P.O. Box 27210 Tucson, AZ 85726 520.791.5093 = = = . • http://tucson.com/oed/oed.html _ _ GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION Offshore International, Incorporated The Offshore Group has partnered for 20 years with U.S. manufacturers in Mexico's maquiladora industry. The Offshore International shelter plan and contract manufacturing programs have permitted manufacturers to remain competitive by reducing production costs. Under NAFTA, Offshore clients continue to benefit from manufacturing programs as well as opportunities in the Mexican marketplace for their products and services through Offshore International business expansion programs. Headquartered in Tucson, the Offshore Group has offices in Hermosillo, Sonora and a full- service, master planned manufacturing park located in Guaymas, Sonora, south of the Arizona/Mexico border. Offshore International Incorporated 777 E. MacArthur Circle, Suite 14 ' THE OFFSHORE GROUP Tucson, AZ 85714 520.889.0022 Manufacturing in Mexico Collectron of Arizona During the past 25 years, Collectron of Arizona's Shelter Plan Program has helped over 100 U.S. owned manufacturing companies start up and operate their maquiladora operations in Mexico. Collectron provides services including assistance in the selection of a site and a modern production facility, securing all required Mexican operating permits and labor, administration of personnel, U.S. and Mexican customs documentation services, and warehousing opportunities. Collectron of Arizona, Inc. 225 N. Freeport Drive Nogales, AZ 85621 520.287.6205 National Law Center For Inter-American Free Trade The National Law Center for Inter-American Free Trade was established in 1992, and functions as a 501(c)(3) non-profit research and educational institution which seeks to develop the legal infrastructure necessary to facilitate the movement of goods, services and investment capital in the Western Hemisphere. The Center conducts comparative legal and transactional studies of the disparate laws, practices and attitudes among countries of the Western Hemisphere desiring to participate in a free trade area. The Center's various projects serve to identify and eliminate structural legal obstacles to free trade through the harmonization of commercial laws and practice and standardization of legal documentation. National Law Center For Inter-American Free Trade 111 S. Church Ave., Suite 200 Atelpirvit Tucson, AZ 520.622.0957 *1.1111411* www.natlaw.com 211.*4/C GREATER TUCSON ECONOMIC COUNCIL TUCSON - MEXICO CONNECTION Arizona-Mexico Commission The Arizona-Mexico Commission aims at working to develop economic and cultural relations between Arizona and Mexico, in particular the State of Sonora. In furtherance of this goal, the AMC works with various state agencies to initiate and implement several important projects to continue building ties between both states and improving the quality of life for the citizens of both states. Arizona-Mexico Commission ---Ale-M.E.+1. 602.542.1345 www.azcentral.com/community/azmex elkIATINAA‘19;# grow M1SSION GREATER TUCSON ECONOMIC COUNCIL REAL ESTATE / FACILITIES REAL ESTATE/FACILITIES Industrial Parks Tucson has fully improved land and existing space to suit the needs of the diverse marketplace of firms considering expansion or relocation. Industrial parks are strategically located near the interstates or major transportation corridors. There are approximately 50 industrial parks in Greater Tucson, with total industrial space at 32 million sq. ft. Average vacancy rate during 1998 hovered around 7%. Moderate growth in the industrial sector promised steady absorption as new firms and expanding local companies seek out facilities. Several industrial parks are located within designated Foreign Trade Zones and many are located within the City of Tucson /Pima County Enterprise Zones, presenting users with a variety of opportunities to reduce costs. Sites located within Foreign Trade Zones and/or Enterprise Zones offer manufacturing firms that meet the criteria, special tax advantages as set forth by these state and federal government programs. In addition to industrial park locations with existing space and land for a build-to-suit, other fully improved industrial zoned land parcels in strategic locations are available for negotiation at competitive prices through Tucson's real estate professionals. Real estate brokers and developers are fully supportive of GTEC's efforts to create a strong economy through a coordinated economic development program to expand local business and recruit new job opportunities to the community. Construction of new facilities is available through any of Tucson's national and international firms. Typical construction of a shell industrial facility is of concrete tilt-up, with standard docks, mixed glass — concrete facades, standard parking with expansion, on property that can accommodate 40' trucks with common area landscaping. Preliminary construction costs can be estimated to meet client's specific needs through any of the GTEC member contractors. The Town of Oro Valley, located six miles north of Tucson, is developing a high-tech industrial park at the intersection of SH 77 (Oracle Road) and Tangerine Roads. The site, Rancho Vistoso Industrial Park, consists of 80 + acres and is zoned for high-tech industries and corporate office space. This park, in conjunction with La Reserve, home of Allied Signal Aerospace Systems, provides Oro Valley with the necessary infrastructure to develop a firm platform for future economic development in the various sectors of research & development and high technology industries. The Town of Marana, located adjacent to Interstate 10 just north of Tucson, is developing a premier industrial park at the intersection of 1-10 & Cortaro Farms Road. The Continental Ranch Business Park, consists of 275 improved industrial zoned acres, and is home for high- tech companies such as Sargent Controls and Delta V Technologies. In addition, Marana has zoned 2000 acres for future industrial development that allows for research and development and high-tech manufacturing use. Source: Metropolitan Tucson Land Use Study-Pima County Real Estate Research Council 1998 SIOR 1998 Comparative Statistics of Industrial and Office Real Estate Markets Town of Oro Valley 1998 Town of Marana 1998 GREATER TUCSON ECONOMIC COUNCIL REAL ESTATE/FACILITIES Research Parks The University of Arizona Science and Technology Park, a master planned development, is located on 1,340 acres in the southeast metro Tucson area. The park, a former IBM facility, consists of nearly 2,000,000 square feet of highly improved space on approximately 340 acres allowing for 1000 acres of future development. Supported and managed by the University of Arizona (a national Research 1 institution), the facility creates linkages between the University and high - tech industries by partnering with nationally known companies in the fields of Aerospace, Optics, Bioindustry, Software Technology, and Environmental Technology. Companies located within the park include Raytheon Missile Systems, IBM, lmation, Moltech, Softworks, Keane, and Hearing Innovations. The park is located less than 1 hour (60 miles) away from Mexico and 2 hours (115 miles) from Phoenix. UASTP is located adjacent to 1-10, a major national interstate freeway traversing the southern half of the U.S., and has rail access via Union Pacific Railroad. The University of Arizona and the Central Business District are approximately 20 minutes (10 miles) away via I- 10. Tucson International Airport is approximately 10 minutes (7miles)west of the facility. Source:The University of Arizona z�Xm ir AS= . 40, �Y{ Office Tucson has a total of 10,341,187 square feet of commercial office space within 391 office complexes. A variety of office complexes offer users many options to choose from garden office styles, Spanish style in the true southwestern tradition or attractive space in financial centers. The vacancy rate for commercial office space in the Tucson area averages 8.2%. Attractive prices to lease or own office space can be negotiated with any of Tucson's real estate professionals. Source: Metropolitan Tucson Land Use Study-Pima County Real Estate Research Council 1998 Grubb&Ellis Real Estate Forecast 1997 SIOR 1998 Comparative Statistics of Industrial and Office Real Estate Markets GREATER TUCSON ECONOMIC COUNCIL REAL ESTATE/FACILITIES Permitting The City of Tucson and Pima County operate a joint Development Services Center that handles all issues relative to development including: planning, zoning, permitting and building inspections. All permitting and inspections can be performed on a fast-tracked basis with a full- time project manager assigned to your project to help ensure problem-free, timely improvements and/or construction. The Development Services Center is a one-stop planning and construction center that promotes quality land development and plan reviews. To help fast-track the permitting process, a new information system; IVR, or Interactive Voice Response system, has been installed by Pima County and the City of Tucson, and allows homeowners and contractors to schedule building code inspections and to retrieve inspection results 24 hours a day, 7 days a week. The IVR system, installed August 24,1998, also allows callers to schedule combination inspections, leave messages for inspectors, or access a message from their field inspector. For further information contact: Pima County/ City of Tucson Development Services Center 41111* 201 North Stone Avenue, 1st Floor Tucson, AZ 85701 Phone: (Pima County) 520-740-6800 Phone: (City of Tucson) 520-791-5550 • • • GREATER TUCSON ECONOMIC COUNCIL INFRASTRUCTURE / TRANSPORTATION 1 INFRASTRUCTURE/TRANSPORTATION Air Service Tucson International Airport, located seven miles from downtown, serves as an International Port of Entry and offers service to 13 cities and connections to more than 75 destinations. There are 59 daily flights per day serving: Atlanta, Oakland, Cincinnati, Phoenix, Dallas, Los Angeles, Las Vegas, Orange County, Chicago, Denver, El Paso, Albuquerque, Ontario, Houston, San Diego, Salt Lake City, and Minneapolis. An additional 9 daily non-stop flights to Mexico are available serving Hermosillo and Guaymas. Tucson International Airport offers connecting flights to the aforementioned cities, and also to an additional 90 cities throughout the world. The Tucson Airport Authority is celebrating its 50th year of operation. The airport occupies 5,700 acres and has 3 active runways ranging in length from 7,000 feet to 10,944 feet. The facility services an estimated 9,174 passengers each day and over 243,308 landings and takeoffs per year. Commercial airfreight handles more than 30 million pounds of cargo annually. The airport's 112 tenants employ over 12,000 people. Tucson International Airport has acquired additional property to ensure future expansion to accommodate southern Arizona's growth. Tucson International Airport is operated by the Tucson Airport Authority, which also operates Ryan Airfield, a general aviation airport located approximately 10 miles southwest of Tucson on Ajo Way. In addition, Avra Valley Airport, located in the town of Marana, is also a general aviation airfield. This private airport, 15 miles northwest of Tucson, is located near a planned industrial site. Monthly Passenger Service at Tucson International Airport 1998-1999 Total Passengers 350,000 0 300,000 250,000 II II II , , ■ I T T II 1 II 200,000 iii1IIIIUIII 150,0002 II1IIIRUIIIl I 100,000 I ■ t ■ ■ ■ I ■ ■ ■ ■ I 50,0001110111111111111111111111I 0 r - , , § 2Co Source:Tucson Airport Authority GREATER TUCSON ECONOMIC COUNCIL P RTATION T O INF�;ASTRUCREIT RAN S U Airlines Serving Tucson International Airport Eleven airlines serve TIA, providing non-stop service to 13 cities and connections to more than 75 destinations. There are 59 daily flights with more than 8,000 seats available to such destinations as: Hermosillo and Guymas, Mexico; Chicago, Dallas, Los Angeles, San Diego, Atlanta, Houston, Denver, Phoenix, Las Vegas and Salt Lake City. The following airlines serve Tucson International Airport: Aero California, Aerlitoral, American Airlines, American Airlines, Continental, Delta, NorthwestlKLM, Reno, SkyWest, Southwest and United/Lufthansa Airlines Source:Tucson International Airport Major Highways Two Interstate highways intersect in the Tucson area. Interstate-10, a cross-continental highway, connects Tucson with Phoenix and Los Angeles to the northwest and El Paso and Dallas, Texas to the east. Interstate-19 connects Tucson with Nogales, Sonora, Mexico, 63 miles to the south. • Interstate-8, providing access to San Diego and southern California, intersects with Interstate- 10 approximately 65 miles northwest of Tucson. Trucking Service w Tucson is serviced by 39 trucking lines, all of which maintain terminals in the metropolitan area. Overnight service is available to: Los Angeles, San Diego, Las Vegas, Phoenix, El Paso, and Albuquerque. There are currently 19 freight-forwarding firms operating in the metropolitan area. Rail Service Tucson is serviced by the Union Pacific Railroad. There is service available with linkages to all other rail systems within the U.S., Mexico, and Canada. Amtrak provides nationwide passenger rail service from its historic location in downtown Tucson. Seaports Tucson has access to deep-water ports located on the West Coast of the United States and Mexico. The Port of Guaymas, Mexico, on the Gulf of California, is located 315 miles southwest of Tucson. The Port of San Diego is located 411 miles west of Tucson and the Port of Los Angeles is located 484 miles northwest of Tucson. These facilities provide Tucson with access to global shipping destinations. GREATER TUCSON ECONOMIC COUNCIL INFRASTRUCTURE/TRANSPORTATION ., Bus Lines ' Greyhound Bus Lines operates a terminal in the downtown Tucson area. This facility provides the Tucson area with passenger and cargo connections to destinations throughout the U.S. GREATER TUCSON ECONOMIC COUNCIL ADVANTAGES / QUALITY OF LIFE ADVANTAGESIQUALITY OF L Tucson has a rich cultural history. Unearthed remains of Hohokam Indian pit houses and adobe huts are verifiable evidence that Tucson is one of the longest continually inhabited areas in North America. When Father Eusebio Fransisco Kino made his visit to the area in 1687, he found Tohono O'Odham and Pima Indians living and farming there. He established several missions throughout the Southwest and developed a friendly rapport with the Native American tribes. "Tucson" was officially founded on August 20, 1775, just four months after Paul Revere's midnight ride, by an Irishman working for the Spanish crown. Don Hugo O'Conor was surveying the region between Sonora and Texas to locate the best sites for military posts (called "presidios"). Don Hugo chose a site for a presidio near the center of what is now downtown Tucson. Tucson became a part of the United States with the Gadsden Purchase of 1854. Since its foundation, Tucson has been home to various Native American tribes, Spanish settlers, and American pioneers. All of these influences have a part in shaping the unique character of Tucson. Over more than 600 square miles, metropolitan Tucson is a study in contrasts. Historic adobes are preserved among downtown high-rises; resort hotels are nestled in picturesque foothills; cacti bloom in the center of the city; desert washes flow after occasional desert storms; and those who tire of pool side lounging can drive 30 miles up Mount Lemmon to ski in the cool mountain temperatures. Tucson is distinguished by its location. It is situated in a valley covered with Sonoran Desert vegetation and surrounded by magnificent mountains that rise to heights above 9,000 feet. There are over 300 days of sunshine a year and an average of 12 inches of rain per year. The average high temperature is 81.7 degrees and a low of 54.2 degrees. Tucson's climate is highly conducive to full, productive workdays throughout the year. ea Arts, Culture & Entertainment(including museums & attractions) The arts are a dynamic and diverse force in the Tucson area. There are more artists per capita living in Tucson than in any other U.S. city, and The Wall Street Journal has designated Tucson as a "mini mecca"for the arts. In 1988, recognition of the arts as a locus for downtown revitalization efforts resulted in the formation of the Tucson Arts District Partnership. Today, families crowd the streets during Downtown Saturday Nights to enjoy street musicians, performers, galleries, and restaurants. City support for the arts is managed by the Tucson/Pima Arts Council (TPAC), a non-profit arts agency named by both Tucson and Pima County as the local arts council. Direct grants to artists and arts organizations, arts education in local schools, rural arts programs, and neighborhood and community arts initiatives are administered by TPAC. Both Tucson and Pima County maintain Percent for Art programs where one percent of City and County capital improvement project budgets provide public art opportunities such as design enhancements, sculptures, and murals. GREATER TUCSON ECONOMIC COUNCIL ADVANTAGES/QUALITY OF LIFE The emphasis on the arts results in Tucson being one of 14 U.S. cities that maintains professional opera, a symphony orchestra, ballet and theatre companies. Residents enjoy acclaimed jazz, classical, blues, and contemporary musical concerts, and the Annual Mariachi Festival attracts international attention. Contemporary dance and theatre companies offer a variety of artistic expressions and themes. Tucson is proud of its ethnic and folk traditions and many arts organizations promote an increased understanding of Native American, Mexican, Latin American, and African American art forms. Tucson is home to museums and cultural centers that are sure to please almost every interest. History is featured at the Arizona State Museum and the Arizona Historical Society, contemporary art and art of the Americas is shown at the Tucson Museum of Art and Historic Block, the University of Arizona manages the Center for Creative Photography, the University of Arizona Museum of Art and several galleries, and families enjoy creative play at the Tucson Children's Museum. The International Wildlife Museum, Reid Park Zoo, Tucson Botanical Gardens, and Tohono Chul Park offer wildlife and botanical experiences. The Arizona- Sonoran Desert Museum is internationally recognized for innovative exhibits, and environments focusing on desert wildlife—over 1,200 varieties of plants and 200 native animal species are displayed. Tucson is proud of its architectural notables. Historic neighborhoods, districts, and barrios offer a range of architectural styles. The historic Pima County Courthouse, El Presidio, and Ft. Lowell are favorite Tucson landmarks. The Mission San Xavier Del Bac, known as the "White Dove of the Desert," provides a true historical experience and is one of Father Kino's Sonoran missions. Nearly 200 years old, its recent renovation has restored the interior to its original significance. For a feel of the "wild west," residents and visitors go to Old Tucson Studios. Originally built in 1939 by Columbia Pictures for the movie Arizona, the studios are used today for TV movies, film productions, and music videos. A theme park adds to its family attractions. As one of the world's foremost centers in astronomy, the Tucson area offers public access to the greatest concentration of observatories in the world: the Flandrau Science Center & Planetarium, Steward Observatory, and Kitt Peak National Observatory. Source: Tucson/Pima Arts Council (TPAC). Tucson's ethnic arts groups have garnered national attention. Tucson and surrounding areas are renowned for their wide range of Southwestern art work. Everything from Native American jewelry, pottery, and rugs, to Mexican hand painted furniture and figurines, and an unusual melding of various styles and mediums of Western art. With everything from rodeos to street fairs, the events and celebrations which occur year-round, reflect numerous ethnic and cultural backgrounds in the food, language, dance, and craft work of the people who make up the Tucson community. In addition to its many outdoor activities, Tucson correspondingly features a variety of indoor activities. With nightclubs featuring everything from Blues, Rock, Pop, and Alternative bands, to Mariachi-band restaurants and the symphony, the choices are as varied as the people who live in and contribute to Tucson society. GREATER TUCSON ECONOMIC COUNCIL ADVANTAGES/QUALITY OF LIFE Another informative and entertaining feature under construction in Tucson, is the Challenger Learning Center of the Southwest, which will be located at the Pima Air and Space Museum. The Challenger mission is to create a unique educational opportunity for students, educators, the business community and Arizona citizens. The center will help teach students the essential math and science skills required by today's high technology marketplace. The curriculum includes classroom activities which, will be complimented by a simulated space flight exercise at the Challenger Learning Center. Education 50 Fabulous Places to Raise Your Family rated Tucson schools as "excellent". Tucson's education system reflects the community's diversity by offering programs at all levels to meet the needs of both student and employer. Sports and Recreation Whether you are a sports participant or spectator, Tucson offers an assortment of activities. With year-round mild temperatures, the outdoors have become a way of life. There are a wide variety of spectator sports available in Tucson. The newly renovated Hi Corbett Field, located at Reid Park, is the spring training site for the Colorado Rockies major league baseball team, and Team USA Baseball during the summer months. In addition to the Rockies, Tucson now has the Arizona Diamondbacks and the Chicago White Sox. The Diamondbacks and White Sox organizations have made Tucson the home of their spring training at the recently built Tucson Electric Park (TEP). The park has 11,000 seats, including family-style lawn seating, 13'/2 training fields onsite, and is part of the Pima County Kino Sports Complex, conveniently located off Interstate 10. The local triple-A baseball team, the Tucson Sidewinders, will also play at TEP during the summer months. The Sidewinders are the AAA affiliate of the Diamondbacks. The Tucson Chrysler Classic PGA Tournament and PING/Welch's Championship LPGA event are premier golf events held each spring in Tucson. NASCAR racing is available six months each year at Tucson Raceway Park. Horse racing is accessible in the spring at Rillito Downs and Greyhound racing year-round at Tucson Greyhound Park. La Fiesta de los Vaqueros, the largest mid-winter outdoor rodeo in the United States is held each February in Tucson. Tucson also hosts the West Coast Hockey League team, The Gila Monsters, who play at the Tucson Convention Center. GREATER TUCSON ECONOMIC COUNCIL ADVANTAGES/QUALITY OF LIFE The University of Arizona (U of A) sports programs routinely gain national attention. The U of A is a member of the prestigious PAC 10 Conference, with teams in all-major men's and women's NCAA sports. The U of A men's basketball team won the NCAA championship in 1996 and is routinely picked to be a top contender. The U of A Wildcats have appeared in 11 consecutive NCAA Men's Basketball Tournaments, making three Final Four appearances during that time. A perennial national championship contender, the Wildcats have won or shared 8 of the past 10 PAC 10 basketball titles. The U of A football program has also enjoyed national recognition. Often ranked in the top 25, the Wildcats play to crowds of over 50,000 Tucsonans, while hosting other national powers. Each season, the Wildcats contend for the conference championship and prestigious bowl title. Wildcat baseball has enjoyed tremendous success, winning three national championships. Women's softball won four national titles during the 90's. Wildcat athletes have represented the nation in the Olympics. Tucson is a paradise for sports participants. With at least 300 days of sunshine per year, Tucson is the perfect place for golf. There are over 35 golf courses, public and private in the Tucson area with every difficulty level. Tennis is available citywide at a variety of court facilities. The city is dotted with both hard surface and clay courts and most are lighted. Bicycling is also popular with many bicycle paths scattered around the city as well as challenging mountain biking trails. Hiking and horseback riding are great ways to enjoy the desert environment around Tucson. Trails are abundant in Tucson Mountain Park and in the Santa Catalina Mountains. From late December through April, skiing is available 30 miles north of Tucson at Mount Lemmon Ski Valley, the southernmost ski area in North America. Tucson has several lakes nearby, Parker Canyon, Pena Blanca, Arivaca, Rose Canyon Lake and Lake Patagonia that offer swimming, boating, fishing and other water sports. Tucson also features world - renowned country clubs, spas and resort ranches that offer health and fitness regimes and personal salon treatment. Housing First-time housing is ample and affordable. "Move-up" homes are available from $80,000 to $125,000. Unlike many communities, affordable, upscale housing is available throughout the metropolitan area. Luxury housing is available from about $175,000 in a wide variety of neighborhoods and styles. Depending on the area and housing, you can select from a wide assortment of custom and semi-custom homes from $150,000 to over$1,000,000. If you prefer to build your dream home, sites suitable for custom home construction are available throughout the area with prices ranging from $50,000 to $200,000. GREATER TUCSON ECONOMIC COUNCIL ADVANTAGES/QUALITY OF LIFE Health Care Tucson provides some of the most advanced health care available through the University Medical Center, Carondelet Hospitals, Tucson Medical Center, Colombia Hospitals, Tucson Heart Hospital and other full-service hospitals. In addition to excellent facilities, Tucson also has a variety of affordable health care programs for employers to choose from and special care facilities for older or special needs patients. Good health begins with a healthy lifestyle. Tucson's attractive climate, profusion of fitness and recreational facilities, and increasing emphasis on wellness and disease prevention programs encourage health living. Various community-wide programs promoting physical and psychological well being are offered by hospitals, physician and dental groups, clinics and agencies throughout Tucson. Testimonials: "Getting involved as a School-to-Work business partner has direct benefits for our company, both short term and long term. It helps us identify potential employees who understand our business and want to work in the field of optics. We now have a hand in the grooming of a much needed labor pool who previously were unaware of optics as a technology and a business." Bob Breault, Ph.D., CEO, Breault Research Organization, Inc. "Participating in School to Work was really fun for our employees, but it also challenged us to find things that interested the kids. We played scavenger hunt games and the Internet so they could find subjects they liked such as music or sports. All the students made their own Resume Web Page with their photo. We didn't know what to expect - the students were more knowledgeable and learned faster than we anticipated." Sue Hold Training Specialist, Intuit, Inc. GREATER TUCSON ECONOMIC COUNCIL TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETINGDATE: 07/21/99 TO: HONORABLE MAYOR& COUNCIL FROM: Jeffrey H. Weir, Economic Development Administrator SUBJECT: Resolution No. (R) 99 -77 , Consideration and Approval of a Financial Participation pp articipation Agreement with the Metropolitan Tucson Convention and Visitors Bureau. SUMMARY: The item you have before you would continue the Town's financial participation with the Metropolitan . p p Tucson Convention and Visitors Bureau(MTCVB) for the 1999/2000 Fiscal Year. The following individuals may be present this evening to answer anyquestions concerningthe may have: FPA the Council Mr. Jonathan Walker, President, MTCVB Mr. John Fuller, General Manager, Sheraton El Conquistador Resort. ATTACHMENTS: 1. Resolution No. (R) 99 - 77 Financial Participation Agreement with the Metropolitan Tucson on Convention and Visitors Bureau, and 2. MTCVB Financial Participation Agreement. FISCAL IMPACT: Funding for the July 1, 1999 through June 30, 2000 FPA with MTCVB is estimated at $ 157,500 which is 75% of the 1% Bed Tax. RECOMMENDATION: Staff recommends approval of the Financial with Participation Agreement w MTCVB. p g SUGGESTED MOTION: I move to approve Resolution No. (R) 99 -77 executingFinancial a Participation Agreement between the Town of Oro Valley and the Metr o ' Tucson Convention nand Visitors Bureau. -� Jeffre . eir, CED Economic Development Administrator 2/44fid David L. Andrews F. . - Direc r Chuck Sweet Town Manager RESOLUTION NO. (R) 99-77 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING AND AUTHORIZING A FINANCIAL PARTICIPATION AGREEMENT WITH THE METROPOLITAN TUCSON CONVENTION AND VISITORS BUREAU CONTINUING SAID AGREEMENT FOR A PERIOD OF ONE YEAR COMMENCING JULY 1, 1999 THROUGH JUNE 30,2000. WHEREAS, the Town of Oro Valley desires to enter into an agreement with the Metropolitan Tucson Convention and Visitors Bureau for the period of one (1) year, and WHEREAS, the Mayor and Town Council have determined that the services of the Metropolitan Tucson Convention and Visitors Bureau are in the public interest, and will allocate funds therefore in the Fiscal Year 1999/2000 budget; and WHEREAS, the parties mutually agree to the scope of services as set forth in the Financial Participation Agreement; NOW, THEREFORE, BE IT RESOLVED: 1. That the attached Financial Participation Agreement with the Metropolitan Tucson Convention and Visitors Bureau continuing said agreement for period of one (1) year, from July 1, 1999 through June 30, 2000 is hereby approved. That the Mayor and administrative officers of the Town of Oro Valley are hereby authorized to take such steps as may be necessary to execute said agreement. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 21st day of July , 1999. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: Kathryn E. Cuvelier, CMC, Town Clerk APPROVED AS TO FORM: Dan L. Dudley, Town Attorney TOWN OF ORO VALLEY FINANCIAL PARTICIPATION AGREEMENT METROPOLITAN TUCSON CONVENTION and VISITORS BUREAU THIS AGREEMENT, made and entered into this day of 1999, by and between the Town of Oro Valley, a municipal corporation, hereinafter called the "Town" and Metropolitan Tucson Convention and Visitors Bureau, an Arizona non-profit corporation hereinafter called the "Bureau". WHEREAS, it has been determined that the activities of the Bureau are in the public interest, and are such as to improve and promote the public welfare of the Town; and WHEREAS, the Mayor and Council have determined that to financially participate in the promotion of the activities of the Bureau is a public purpose in that the activities confer direct benefit of a general character to a significant art of the public; and p WHEREAS, the Town desires to acknowledge the Bureau as the principal mechanism through which tourism development, convention attraction and related activities will be undertaken in the furtherance of theoals and objectives of the Town and to promote and facilitate the economic well-being of the Town; and WHEREAS, it is the intent of the Town, subject to the provisions of the state budget law, to provide funding to the Bureau as set forth herein; and WHEREAS, the Town and the Bureau desire to establish a general framework for cooperative efforts, especially the general procedures by which the Bureau willre are p p and carry out tourism development and convention attraction activities; NOW, THEREFORE, in consideration of the foregoing, the parties do mutually agree as follows: ARTICLE 1 Section 1.1 Responsibilities of the Bureau. A. Goals Statement. The Metropolitan Tucson Convention and Visitors Bureau will initiate, implement and administer a comprehensive sales promotion and advertising program to attract an increasing number of convention delegates and vacationing tourists to the Town, thereby providing revenues to the community through transient rental and sales taxes, and contributing to the overall economic growth and continued viability of the tourism and hospitality industry. B. General Operational Objections. The Bureau agrees to actively pursue the objectives outlined below throughout the term of this agreement. Bureau Administration Provide administrative control over all Bureau programs within the guidelines established by the Bureau's Executive Committee; Provide administrative and managerial direction in the planning, implementation p and coordination of all Bureau operations; Provide recommendations for the Bureau's financial and managerial policies to . the Executive Committee; and Provide policies to increase the number of major conventions and trade shows; the volume of off-season business and to increase community awareness in the Bureau's purpose, activities and achievements in order to insure the Bureau's base of membership funding. Convention Sales Attract an increasing number of conventions to Oro Valley, particularly in the off- season (May to November) by: Use of exhibit booth and sales personnel at trade shows, expositions, and conventions; Personal contact, direct mail, and telephone solicitation of meetingp lanners and association executives; Providing meeting planners and association executives with a complete tour of p Oro Valley facilities and attractions; Use of speaking engagements and public service announcements seeking the cooperation of local citizens in attracting organizations of which they are members to hold their conventions in Oro Valley; Providing the services to conventions booked, and the coordination of the various facilities used, to ensure successful meetings and repeat business; Providing all services of satellite offices, New York City, Washington, D.C. and Chicago. Tourism Development Increase the number of foreign tourists and U.S. citizens visiting Oro Valley Y b : Use of coordinated advertising campaign to reach significant foreign and domestic target area markets; 2 Answering promptly all inquiries from potential visitors; Preparation and distribution of promotional material to travel agents, tour operators, and travel writers; Use of exhibit booth and sales personnel at travel trade shows and expositions attracting travel agents, tour wholesalers, motor-coach group tour representatives, and incentive travel companies; Invitations to foreign group tour operators to visit Oro Valley as part of their itinerary on State-promoted tours; Providing familiarization tours of Oro Valley attractions and facilities to visiting travel agents, tour operators, and travel writers; and Active participation in programs and promotions sponsored by the Arizona Office of Tourism, a state agency. Respond to tourism inquiries received at the Town of Oro Valley Home Page. Membership Program Implement programs as membership development, retention and support, as follows: Identify categories of membership and prospective members within the selected categories; Develop and implement an equitable membership dues structure; Develop and implement a membership billing and annually reviewed billing system; Develop a program for continued liaison with members designed to insure continued membership retention; Develop and implement a program designed to increase Bureau's membership base; and Continue a program of desirable membership activities to enhance the lines of communication between the membership, the Bureau's staff and various committees. ARTICLE 2 Section 2.1 Specific Services to be Performed by the Bureau. Bureau objectives for 1999/2000 (July 1, 1999 - June 30, 2000) 3 1. To attract an increasing number of conventions to Oro Valley particularly in the off-season (May to November). Among the goals established to meet this objective for Fiscal Year 1999/2000 are to increase the MTCVB-initiated leads for room nights to 312,000, and group sales leads to 1,225. 2. To increase the number of foreign tourists and U.S. citizens visiting Oro Valley. The Bureau expects 700 travel articles to be published as a result of their work with travel writers. 3. To implement programs of membership development, retention, and support. The Bureau plans to achieve membership investments in the MTCVB of$366,000. 4. The Bureau shall utilize its sales manager to generate leads for convention meetings and tours to promote Oro Valley and will specifically conduct familiarization trips which will include the Oro Valley area. 5. As part of the Bureau's participation in trade shows, Bureau agrees to provide and furnish materials pertaining to Oro Valley. 6. Bureau agrees as part of its official visitors guide to feature Oro Valley in the visitors guide, calling attention to the points of interest and attractions in the Town of Oro Valley. This feature shall include a map of the Oro Valley area. 7. Bureau agrees to assist in helping produce a brochure in the event that the Town of Oro Valley obtains funding through the Arizona Office of Tourism Community Cooperative Advertising Program. The photographs for the brochure will be provided by the Bureau. The Bureau agrees to display in a prominent area in the Bureau offices the Oro Valley brochures. In addition, the Oro Valley brochure will be included in all responses requesting relocation information. Events in the Town of Oro Valley that would be of interest to visitors of which the Bureau has been advised by the town shall be included in the bi-monthly publication of the Bureau. The lure brochure published by the sales department shall include information pertaining to Oro Valley. 8. A position on the board of Directors shall be maintained for an elected official from the Town of Oro Valley. 9. The Bureau shall provide a semi-annual report of its activities as they pertain to the Town of Oro Valley and will include the Town of Oro Valley in the acknowledgement that it places on all publications and press releases similar to the following: "The Metropolitan Tucson Convention and Visitors Bureau is an independent, non-profit corporation dedicated to supporting the Tucson area as a visitor and convention destination. It is financially supported by the City of Tucson, Pima County, the Town of Oro Valley, and its individual and business members." 4 10. Bureau agrees to maintain as part of its library slides and photographs for the use by its clients, photos and slides provided to the Bureau by the Town of Oro Valley. Section 2.2 Responsibility for Open Records. With the exception of expenditures for contractual services, the Bureau agrees to make open to the public all records relating to any funds directly received from the Town, City of Tucson and Pima County, that the Bureau distributes to other organizations or individuals. Section 2.3 Evaluation Criteria and Reporting. The Bureau agrees to submit to the Town Council reports addressing the progress of the Bureau in achieving its objectives. In order to assess the impact of the Bureau, the town, through its designated representative, reserves the right to evaluate performance, and the Bureau will cooperate and use its best efforts to provide access to all pertinent information reasonably necessary to make evaluations. Section 2.4 Accountability. The Bureau shall maintain a true and accurate accounting system which meets acceptable accounting practices of the accounting profession, and which is capable of properly accounting on a timely basis for all expenditures and receipts of the Bureau. The Bureau shall provide the Finance Department of the town, within three months after the close of the Town's fiscal year with: An annual accounting, or A copy of an outside audit of the Bureau for the time period approximating the period of the Town contract, together with any Bureau response to audit findings. At any time during, and up to a period of five (5) years after completion of this contract, the Finance Department of the town or designated Town agent will be given access to the audit records of the Bureau for the Town's internal audits. Section 2.5 Term of Agreement. This Agreement between parties as described above shall be effective from July 1, 1999 through June 30, 2000 and may be extended for two additional fiscal years so long as: The Mayor and Council of the town determine the services of the Bureau are in the public interest and allocate funds therefor, and - the parties mutually agree as to scope of services to be provided by the Bureau in any subsequent fiscal year. 5 At the end of the third fiscal year referred to above, the provisions of this agreement will be subject to review and renegotiations by the Town and the Bureau. Section 2.6 Termination. This Agreement may be terminated at any time by mutual written consent by either party giving ninety (90) days written notice to the other party. Further, the contract may be terminated for good cause by either party with thirty (30) days written notice to the other party. For purposes of this agreement good cause shall include but not be limited to the inability of either party to meet its financial obligations under this contract. ARTICLE 3 FUNDING Section 3.1 Payment. A. It is the intent of the Town that the Bureau receives from the Town an amount mutually agreed upon and measured by one percent (1%) of the Bed Tax Revenues collected by the town. Disbursement of funds by the Town is subject to the annual appropriation by the Town Council and the limitations of the state budget law. It is the intent of the Town that the Bureau receives from the Town seventy-five percent(75%) of the one percent (1%) Bed Tax Revenues actually collected by the Town for each previous month. Payments shall be made on a monthly basis commencing July 1, 1999. Payments are to be made within forty (40) days after the close of each preceding month. B. It shall be the responsibility of the Bureau to obtain funding from sources other than the Town. Financial participation agreements with other governments and government agencies, grants, donations, memberships and any other sources of funding as may become available from time to time shall be included as part of the annual budget submission. C. Method of Payment. The Town may, as a result of subsequently discovered evidence, withhold whole or part of the scheduled payment as may be necessary because: - Services were not rendered. - The Bureau failed to supply information or reports after reasonable requests. - The Bureau is not in compliance with agreed upon disbursement documentation and/or other project performance. - The Bureau failed to make required payments to subcontractors. When the reasons for withholding payments have been corrected to the satisfaction of the Town, any amounts due shall be processed. 6 ARTICLE 4 ACCOUNTABILITY Section 4.1 The Bureau shall implement an accounting system which will comply with the p y generally accepted auditing principles and with the provisions of the AICPA audit guide for nonprofit corporations. Section 4.2 The Town shall incur no liability for ineligible expenses and such shall be the sole responsibility of the Bureau. ARTICLE 5 MEMBERSHIPS AND OTHER FUNDING Section 5.1 The Bureau shall actively solicit memberships as well as financial participation by Pima County and other incorporated cities and towns who benefit from the services provided by the Bureau. Section 5.2 The Bureau assures the Town that it will endeavor to maintain ongoing g g funding levels from Pima County consistent with the provisions of A.R.S. § 42-1496 and ongoing funding levels from the City of Tucson. If either the Pima County Board of Supervisors or the Tucson City Council fail at any time during the term of this Agreement to make the full allocation pursuant to their respective agreements with the Bureau, the Bureau and Town mutually agree to renegotiate this Agreement. Section 5.3 In each fiscal year, the Bureau will specify in a Memorandum of Understanding, to be entered into each year by the parties, the percentage that it will attempt to achieve in other funding. ARTICLE 6 MISCELLANEOUS TERMS AND CONDITIONS Section 6.1 Hold Harmless and Insurance Provisions. A. Indemnification. The Bureau agrees to indemnify and save harmless the Town, its Mayor and Council, appointed boards and commissions, officials, officers, employees and insurance carriers, individually and collectively (the "Town") from all losses, claims, suits, demands, expenses, subrogation's, attorney's fees or actions of any kind and nature resulting from personal injury to any person (including bodily injury and death) or damages to any property, arising or alleged g to have arisen out of either (1) the Bureau's negligent performance of the terms of this contract, or (2) any of the Bureau's acts or omissions, except to the extent attributable solely to a negligent act or omission of the Town. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of indemnity in this paragraph. 7 B. Insurance. 1. Obtain insurance coverage of the types and amounts required in this section and keep such insurance coverage in force throughout the life of this Agreement. All policies will contain an endorsement providing that written notice be given to the Town at least thirty (30) calendar days prior to termination, cancellation, or reduction in coverage in any policy. 2. The Comprehensive General Liability Insurance and Comprehensive Automobile Liability Insurance policies will include the Town as an additional insured with respect to liability arising out of the performance of this Agreement. 3. The Bureau will provide and maintain minimum insurance limits as follows: COVERAGE AFFORDED LIMITS OF LIABILITY Workmen's Compensation Statute Employer's Liability $100,000 Comprehensive General $1,000,000 - Bodily Injury Liability Insurance Combined Single Limit a. products and $100,000 Property Damage completed operations Comprehensive Automobile $1,000,000 - Bodily Injury Liability Insurance Combined Single Limit Including: non-owned $100,000 Property Damage leased, hired vehicles Section 6.2 Conflict of Interest. The Bureau agrees that the provisions of A.R.S. Title 38, Article 5, "Conflict of Interest of Officers and Employers", apply to all the transactions of the Bureau. Section 6.3 Open Meeting. The Bureau agrees to conduct its business in compliance with the provisions of A.R.S. Title 38, Article 3.1 "Public Meetings and Proceedings". Section 6.4 Purchasing. In purchasing contracts for goods and services, the Bureau agrees that it will implement and maintain policies and procedures that insure, wherever feasible or practical, that there will be announced, documented, competitive bidding for such contracts so that the potential effectiveness, as well as cost factors, are considered by the Bureau in the selection of said goods and services. Section 6.5 Performance Evaluation. In order to assess the impact of the Bureau, the Town reserves the right to evaluate performance. Information desire by the Town which is pertinent to this evaluation will be made available for this purpose by the Bureau at the Town's request. 8 Section 6.6 Independent Contractor. The parties stipulate and agree that Bureau is not an employee of the Town, and is performing its duties hereunder as an Independent Contractor, supplying its own employees, and maintaining its won insurance, workman's compensation insurance, and handling all of its own internal accounting. The Town in no way controls, directs or has any responsibility for the actions of the Bureau herein. Section 6.7 The Bureau shall further be responsible for compliance with the United States Immigration Reform and Control Act of 1986, and shall indemnify and hold harmless the Town for any liability arising from failure of the Bureau to comply with said act. Said indemnification to include the costs of suit. Section 6.8 Contract Amendments. By mutual consent of both the Town and the Bureau, this Agreement may be re-opened for renegotiations of and/or the addition/deletion of amendments. Any request for renegotiations shall be in writing, detailing the requested changes. A meeting to discuss the changes shall be held within 30 days of the receipt of the request. Any change to this Agreement will be approved by Mayor and Council. Section 6.9 For each year that the Mayor and Council appropriate funds for the Bureau pursuant to Article II above, the Bureau shall enter into a Memorandum of Understanding with the Town. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. TOWN OF ORO VALLEY, a municipal corporation as Mayor and not personally Paul H. Loomis Attest: As Town Clerk and not personally Kathryn E. Cuvelier, Town Clerk 9 THE BUREAU: METROPOLITAN TUCSON CONVENTION AND VISITORS BUREAU Authorized Signature Witness to Bureau Signature: Approved as to form this day of , 19_: As Town Attorney and not personally Dan L. Dudley, Town Attorney 10 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Paul K. Nzomo, P.E Civil Engineer: CIP & Development SUBJECT: Resolution (R) 99-78 Award of contract for Project No. 98-99 12 Oracle / Linda Vista Roads Traffic Signal Installation, Median Adjustments, and Roadway Widening. SUMMARY: This project involves the installation of a traffic signal, roadway widening and median adjustments. This will include grading, culvert extensions, median curbing, curbing and sidewalks, asphaltic concrete paving, traffic signal installation, pavement markings and signing, and other incidental work. These improvements will improve the safety of the intersection. In response to the advertisement for bids, the Town received two (2) bid proposals. The bid proposals were opened by Town staff at 2:00 p.m. on July 8, 1999. The following is a summary of the bids received along with the engineer's estimate: 1. Cimetta Engineering and Construction $ 285,414.50 2. NAC Construction $ 313,192.40 Engineer's estimate $ 298,326.50 ATTACHMENTS: Resolution (R) 99 -78- FISCAL 78-FISCAL IMPACT: Funding for this project is available from budgeted Town funds for the 98/99 fiscal year. TOWN OF ORO VALLEY COUNCIL CONIMUNICATION Page 2 of 2 RECOMMENDATION: Public Works staff recommends the awarding of this contract to lowest bidder Cimetta Engineering and Construction Company through the adoption of the attached resolution. SUGGESTED MOTION: The Council may wish to consider one of the following motions: I move to approve Resolution (R) 99-78 OR I move to deny Resolution (R) 99-78 714) .L;e- # William A. Jansen, P. ., n Engineer g/LAA# 1 Chuck Sweet, To n Manager RESOLUTION NO. (R) 99- 78 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AWARDING A CONTRACT FOR TRAFFIC SIGNAL INSTALLATION, MEDIAN ADJUSTMENTS, AND ROADWAY WIDENING AT THE INTERSECTION OF LINDA VISTA AND ORACLE ROADS TO CIMETTA ENGINEERING AND CONSTRUCTION COMPANY. WHEREAS, the construction of roadway improvements within the Town's Right of Way is necessary to the public health, safety, and welfare in order to provide for the safe and effective movement of vehicular and pedestrian traffic; and WHEREAS, the Town Council deems it necessary, in the interest of providing for the health, safety, and welfare of the citizens of Oro Valley, to authorize the Town's staff to contract with Cimetta Engineering and Construction company for traffic signal installation, median adjustments, and roadway widening at the intersection of Linda Vista and Oracle Roads. THEREFORE, BE IT RESOLVED, BY THE MAYOR AND THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: That the Town Manager is authorized to contract with Cimetta Engineering and Construction Company for traffic signal installation, median adjustments, and roadway widening at the intersection of Linda Vista and Oracle Roads. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 21st day of July , 1999. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Dan Dudley, Town Attorney Date Date TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: 07/21/99 TO: HONORABLE MAYOR & COUNCIL FROM: Jeffrey H. Weir, CED Economic Development Administrator SUBJECT: Economic Development Administrator's April-June 1999 QuarterlyUpdateMayor to the Ma or and Council. BACKGROUND: The Economic Development Administrator will provide an update to the Mayor and Council on economic development activities within the community at the end of eachq uarter. SUMMARY: It is highly important that the Mayor and Council members receive information that is relevant, easy to absorb and understand, and clearly identifies the results and actions associated with a specific economic development related activity. The following format is used to assist with clarity and brevity: I. Economic Development Activity Reports. These reports contain information concerning major/significant commercial/industrial/retail projects. There are three sections one for Active Projects, the second for Completed Projects and the third for Community Projects. A Project Name is provided with an identifying Location, and a Status on progress. Also, various economic/financial data relative to the project is provided. When a Project is completed it will remain on the report for one full calendar year from the date of completion. Key Comments: 1. Brake Max, Carl's Jr. and Safeway at Vistoso Plaza have been completed duringthe last quarter. 2. Home Depot has begun grading, plant salvage, and construction. 3. The All Suites Holiday Inn Express, the prototype all suites inn—the first in the world, has scheduled ground breaking for July 9th. The facility will have 89 suites and is anticipated to open December 15, 1999. 4. Community Development Services building has been added for tracking pur II. Project Specific Reports. These reports will contain, when available, detailed information concerning employment positions, pay rates, benefit programs, etc. to better understand the "employment impact" for this business. Other information sought out will be revenue forecasts, investment plans, infrastructure needs, and other community related information. Key Comments: 1. Prospects have increased by ten (10) to a total of twenty (20). TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 2 of 2 2. New prospects include office buildings, retail centers, hi-tech manufacturing, restaurants, g and two community banks. III. Miscellaneous/Other Reports. 1. The Economic Development Administrator is serving as a member of the Arizona Association for Economic Development (AAED) Optics 2000 Conference Planning team. This conference will be held in Tucson during the fall of 2000. This conference will be draw attendees from throughout the world. Attendance is anticipated to reach between 150-250 persons and 30-50 exhibitors. 2. The Oro Valley Household Survey requesting input on desired retailers, services, etc. will be presented to the Town of Oro Valley's Focus Group for their comments and suggestions after making a "test run". ATTACHMENTS: 1. Economic Development Activity Reports. a. Oro Valley Construction Activity— Fiscal Year to Date and Year to Year comparison. b. Project Activity/Status Report. c. Prospect Recap Report. RECOMMENDATION: Staff would like the Council's feedback with regard to this report structure depicting the Town's economic development activities. SUGGESTED MOTION: N/A. i -X.. ' 411 il: Jeffre, H Weir, CED Economic Development Administrator ZAztizoi' oR- 627-1.4/144, -- David L. 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C to C O V a — — U O a) — ■ -ti - 7.3 TO a) .— = > _ — .0 U 3 c — c 0 0 V u u - C u •— a� cn v, m 0 = a L L L U fa . a m Q cn — ° a ° 40 0 I- i u V = a) CD a) H 4, L. a m 0 a' a) ° s E t aci a ° a E E E s a' u w O a cC E a I— 0 cn cn cn co cC cL 0 0 0 °' v' ° E 0 o Q a U V U = = cG V p a 0 u 01 4,, a �a (71 o 'C ol ,„u -a 01i O01 001 cn 001 001 QOj 01 0 0 01 01 01 01 0 0 0 0 01 01 h3O p 01 O NofO M *I M a to Nc ° h h 45bk0 M M M M M M M M M h b 45- W5 a Z O O O O O O O O O O O O O O O O O 0 0 01 ch en <ta LA to TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-97-18B CARL'S JR. PUBLIC ART PROPOSAL BACKGROUND: The Carl's Jr. restaurant received Town Council approval for the development plan on December 16, 1998. The proposed public art will be located along the southern property line, about 55' from Oracle Road. This item was continued from the July 7th Town Council meeting. SUMMARY: Per Section 4-504F of the OVZCR, all new commercial related projects shall contribute 1% of the project cost towards public art. The art contribution must be certified in compliance with the dollar amount prior to issuance of a Certificate of Occupancy. The attached public art proposal has been reviewed and recommended by the Public Art Review Committee (PARC). The finished piece will be a steel sculpture of two bighorn sheep. The attached sketches show side views of both sheep. The front view will be the same for both. The proposed public art will be done by Lauri Slenning. The public art contract agreement is attached and states the cost for the proposal which is 1% of the onstruction cost. The proposed public art will also serve as additional bicycle racks for Carl's Jr. Engineering staff reviewed the public art proposal and recommends that an engineer or architect registered in the State of Arizona check the foundation and attachment designs for live, dead, and wind loads. A report must be submitted recommending the type and size of foundation and anchoring system for the artwork, and is to include all supporting calculations. This is included as a condition in Exhibit "A." RECOMMENDATION: Staff recommends approval of the proposed Public Art for the Carl's Jr. at Oro Valley Retail Center, subject to the conditions attached as Exhibit"A." SUGGESTED MOTION: I move to approve OV 12-97-18B Carl's Jr. at Oro Valley Retail Center public art, subject to the condition set forth in Exhibit "A". ATTACHMENTS: 1. Reduced Copies of the Proposed Public Art 2. Site Plan 3. Contract Agreement I Pl. ': and Zoning Administrator Town Manager F:\ov\ov12\1997\12-9718B\pubarttcirpt EXHIBIT "A" CONDITIONS FOR APPROVAL CARL'S JR. AT ORO VALLEY RETAIL CENTER PUBLIC ART PROPOSAL 1. An Engineer or Architect registered in the State of Arizona shall check the foundation and attachment designs for live, dead, and wind loads. A report must be submitted recommending the type and size of foundation and anchoring system for the artwork, and is to include all supporting calculations. Jon. . 5 . 99� ? .bP:�� CKE CCNs:RET[ON (714) 97C-3476 No 3c33 P. 2 I0 CARL ' S JR . RESTAURANTS (Jarl'sJr. Carl K:irclicr Enterprises.Inc One Cary BouJcvn1 wcsi Su,tc 350 pmt.CA 92868 (714)940-3440 CARL KARCHj'R ENTERPRISES, INC. CONTRACT AGREEMENT This agreement is made this 15th Day of EYE 1999, between CARL, KARCHER ENTERPRISES, INC. a California Corporation ("CKE") having a principal place of business at 401 W. Carl Karcher Way, Anaheim, CA 92801, and LAURI SLENN1NG, independent contractor, having a principal place of business at � 4:9 7 / $j kfC /47€7hAZ-("Ctra "). 1. Statement of Work: ic7t 2_ Ms. Stenning to produce and install public art piece (as described on Exhibit "A" attached hereto and made a part hereof by this reference) at the Carl's Jr. Restaurant #365 N rade Road nr V Iey_,�rizor.a, 2. Fee/Payment Schedule: The fee for the public art piece will be X5,400.00 with 50% due and payable upon completion of the completely executed contract. The remaining balance will be due and payable within 10 days of the completion of the installation. The installation is to be complete on or before / 30/ 7?. In the event that the Town of Oro 'Valley requires modifications to the piece as designed, or the services of one or more consultants, Ms. Slenning will reduce the scale and/or scope of the piece in order to conform to the project cost. 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I . c......._------- 6 I york %A 4 oi , ; i �i''sk so/d shek ! . fl 0 1 6,,,-. . icck aek/A4- Cia:c gYs. 611-1 coitrjay trukoks ritjetto 0 fry% mkt lack t4 --/f g` - .0; O O ge5; =AL. P.09 4 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 f0: HONORABLE MAYOR& COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-99-06 CHURCH OF THE APOSTLES DEVELOPMENT PLAN, LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD. BACKGROUND: The WLB Group, representing the Church of the Apostles requests Town Council approval of a development plan. The subject parcel is located within the newly annexed area of the Town known as La Cholla/Tangerine. The owner requested church entitlements and a conditional use permit entitlement for a school as allowed by Pima County during the translational zoning process. The development plan illustrates the layout of the church and future expansion. This item was continued from the July 7, 1999 Town Council meeting. SUMMARY: The subject parcel is 35.8 acres and its existing zoning is R1-144 and will consist of a church. Twenty-eight (28) acres will be open space and building coverage will be about one acre. The parking requirements are listed in the general notes and the amount of spaces and layout complies with the parking section in the OVZCR. Pages 2 and 3 of the development plan illustrate the phases of this project. Phase I will consist of the Parish Hall Sanctuary, Reception Wing, Office Wing, and parking. Phase II will consist of a future sanctuary, potential future expansion, and more parking. Per the direction of the Town Council at the July 7th hearing, only the first phase is being presented herein. This project is within the proposed critical habitat for the Cactus Ferruginous Pygmy Owl. Harris Environmental Group, Inc. surveyed the subject property during the week of February 1, 1999 for cactus ferruginous pygmy-owls (Glaucidium brasilianum cactorum), an endangered species under the Endangered Species Act of 1973, as amended. The results of the survey were negative; no cactus ferruginous pygmy-owls responded to broadcast calls. There is an archaeological site on the northeast corner of the parcel, but that area is left as natural open space. A wash (100-year floodplain) flows from the north of the property to the south, but there are no buildings that encroach on this wash. However, there is a driveway which crosses the wash and a culvert crossing will be used to mitigate this impact. Page 2 of the development plan illustrates a proposed future road alignment of La Cholla Boulevard that will be done under as a separate project. This future alignment will encroach on the property lines, but not the 100-year floodplain or the archaeological site. Tangerine Corridor Overlay District The applicant has conducted a viewshed analysis in compliance with Section 10-003 of the OVZCR. Twenty-one photographs were taken from the roadway frontage of the property at intervals, documenting existing visual resources on and across the proposed development site. The viewshed from Tangerine Road will not be significantly affected by the proposed building height of 25 feet and tower height of 34 feet. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 4 ACCESS/TRAFFIC: Access to the site is proposed from three locations. There will be one from Como Road, and two future access points; one from La Cholla Boulevard and the other one from Limewood Drive. At present both Limewood Drive and Como Road are not paved up to their access points. This development is required to pave 24' minimum pavement on both roads. Como Road will be paved with the first phase and Limewood Drive will be paved with second phase. This project will install a 12' wide 200' long right turn deceleration lane with a 250' taper on Tangerine Road at the intersection of Tangerine and Como Roads. A traffic analysis was prepared for this project, which included the church and proposed school (phase II). The applicant will submit a revised traffic analysis prior to the Town Council meeting. DRAINAGE: Currently, the site exists in its natural state with runoff conveyed from north to south. Five off-site watersheds that range from 8 through 58 cfs affect this development. These flows will be accepted and conveyed into their historical discharge points. Under the existing conditions, sheet flow is combined with on-site generated flows and is discharged across Tangerine Road through existing dip sections. The commercial use of the parcel will require that 5-year threshold retention be provided. The site has not been signed as being located in a critical or balanced basin; therefore, detention for this site will not be required. fhere is no FEMA regulatory floodplain associated on-site, and the U.S. Army Corps of Engineers has not designated any jurisdictional washes on this site. GRADING: Grading will be limited only to the locations of proposed parking lots, buildings and driveways and will be phased. The development plan complies with Oro Valley Grading Ordinance. GENERAL PLAN CONFORMANCE: Oro Valley has designated this area as acceptable for rural low-density residential uses (R-LDR). The General Plan also established an Urban Growth Boundary (UGB) along the northern edge of the planning area. The site lies immediately north of the UGB, as shown on the attached map. To respond to the UGB while translating Pima County entitlements, the Town Council approved the translational zoning for this property with the condition that no more than 30% of the 36-acre site may be developed. The development plan before you, even with phase two, meets this criterion. DEVELOPMENT REVIEW BOARD ACTION: -)n May 11, 1999, the Development Review Board recommended approval of this development plan by a 6 — 0 ote. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 4 RECOMMENDATION: Staff has reviewed the request for a development plan for this parcel and recommends approval with the condition stated in Exhibit"A". If the Council wishes to consider it, Staff also recommends approval of Phase Ii. This would provide for future expansion of the church, which has been approved by DRB, and could be approved independent of the CUP for the school. SUGGESTED MOTION: I move to recommend approval of OV 12-99-06, Church of the Apostles Development Plan alongwith the conditions attached as Exhibit"A". OR I move to recommend approval of OV 12-99-06, Church of the Apostles Development Plan along with the conditions attached as Exhibit"A" and the following added conditions: . OR I move to continue OV12-99-06, Church of the Apostles Development Plan. ATTACHMENTS: '. Exhibit"A"—Conditions for Approval / 2. Reduced Copy of Development Plan - / k)e)....____I f°"'k Pla ''n: s'i d Zoning Administrator _ r .v Al ii Town Manager F:\OV\OV9\1999\12-99-06\DPTC3.RPT EXHIBIT "A" OV12-99-06 CONDITIONS FOR APPROVAL CHURCH OF THE APOSTLES DEVELOPMENT PLAN 1. Improvements on Tangerine Road, Limewood Drive, and Como Road shall be submitted to the Public Works Department for review and approval prior to issuing a grading permit. 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La Canada Blvd. Oro Valley, Arizona 85737 Dear Mayor Loomis: The go-ahead given The Church of the Apostles development plan, phase one, July 21, 1999, is another step in the wrong direction concerning our neighbors, the nascent Town of Tortolita. The Oro Valley Town Council is well aware of the legal limbo in which the question of Tortolita remains, and has no authority to grant development permits within the disputed geographic boundaries. This reckless action places the Town in more future legal jeopardy, and poisons the prospect of mutually beneficial inter-governmental interaction in the future. In addition, the recent dispute over town signage, which resulted in the arrest of Tortolita councilman, Alan Lathrem, was an embarrassing and outrageously aggressive attack. This incident leaves the Town of Oro Valley vulnerable to civil damages and promises unnecessary litigation. It is in the best interests of our community to act responsibly and to take prudent care not to place the Town in such highly questionable positions. I would remind you of an ancient warning: : " Force without wisdom falls of its own weight." ;Horace, Book 111, line 65. Although written in 65 BC, the point still is valid. I would urge you to adopt a 'good neighbor' policy immediately. Vacate the arrest of Mr. Lathrem, issue Mr. Lathrem and theTown of Tortolita an official apology, pledge that the Town of Oro Valley will take a 'wait and see' position, and rescind the council action taken on behalf of The Church of the Apostles, July 21st . These actions will signal that a responsible leader is at the helm of Oro Valley, rather than one, as some have been before you, who relishes questionable and imprudent official practices. Yours truly, Terry Dudas Oro Valley, AZ 85737 I 7 copies to LaSala, Parisi, Bryant and Johnson TOWN OF ORO VALLEY 5 COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-99-06 CHURCH OF THE APOSTLES LANDSCAPE PLAN, LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD. BACKGROUND: The WLB Group, representing the Church of the Apostles requests Town Council approval of a landscape plan. The subject parcel is located within the newly annexed area of the Town known as La Cholla/Tangerine. This item was continued from the July 7th Town Council meeting. SUMMARY: The subject parcel is 35.8 acres and its existing zoning is R1-144 and the applicant is proposing a church and future expansion. Even with the proposed expansion, twenty-eight (28) acres will be open space and building coverage will be about one acre. The open space will be preserved in its natural state, which will provide for an adequate buffer between the adjacent properties, and the developed area will be landscaped with trees, shrubs, and groundcover. In addition, a number of Palo Verde trees will be preserved in place in and around the parking area. The parking lot islands will be landscaped as well as the perimeter of the developed area. There fill also be landscaping along the driveways and other developed areas. The plant legend for this site is listed on Sheet 3. All of the proposed plants are listed in the Oro Valley Plant List and/or the ADWR Plant list. GENERAL PLAN CONFORMANCE: This project complies with Policy 9.1H of the General Plan ensuring that the landscaping preserves and enhances the ecological and scenic qualities. This is done with the natural desert landscape surrounding the proposed church and school. DEVELOPMENT REVIEW BOARD ACTION: On May 11, 1999,the Development Review Board recommended approval of this landscape plan by a 6—0 vote. RECOMMENDATION: Staff has reviewed the request for a landscape plan for this parcel and recommends approval along with the condition attached as Exhibit"A." SUGGESTED MOTION: I move to recommend approval of OV 12-99-06, Church of the Apostles Landscape Plan along with the condition attached as Exhibit"A." OR TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 I move to recommend approval of OV 12-99-06, Church of the Apostles Landscape Plan along with the conditions attached as Exhibit"A" and the following added conditions: OR I move to continue OV12-99-06, Church of the Apostles Landscape Plan. ATTACHMENTS: 1. Exhibit"A"—Conditions for Approval 2. Reduced Copy of Landscape Plan Pl. • Ltd Zoning Administrator -24 a e Town Man.ger F:\ov\ov12\1999\0V12-99-6\LPTC2.RPT EXHIBIT "A" OV12-99-06 CONDITIONS FOR APPROVAL CHURCH OF THE APOSTLES LANDSCAPE PLAN 1. Per Section 14-207, all graded areas not landscaped, stabilized or developed upon expiration of the grading permit shall be revegetated in conformance with the following standards within 30 days of expiration. The treatment of all graded areas shall require the approval of the Development Review Board. TOWN OF ORO VALLEY 5 COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-99-06 CHURCH OF THE APOSTLES LANDSCAPE PLAN, LOCATED ON THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CHOLLA BOULEVARD. BACKGROUND: The WLB Group, representing the Church of the Apostles requests Town Council approval of a landscape plan. pp p The subject parcel is located within the newly annexed area of the Town known as La Cholla/Tangerine. This item was continued from the July 7thg Town Council meeting. SUMMARY: The subject parcel is 35.8 acres and its existing zoning is R1-144 and the applicant is proposing a church and future expansion. Even with the proposed expansion, twenty-eight (28) acres will be open space and building coverage will be about one acre. The open space will be preserved in its natural state, which willp rovide for an adequate buffer between the adjacent properties, and the developed area will be landscaped with trees, shrubs, and groundcover. In addition, a number of Palo Verde trees will bepreserved in place in and around the . parking area. The parking lot islands will be landscaped as well as theperimeter of the developed area. There • p gill also be landscaping along the driveways and other developed areas. Thelant legend for this site is listed on Sheetp g 3. All of the proposed plants are listed in the Oro Valley Plant List and/or the ADWR Plant list. GENERAL PLAN CONFORMANCE: This project complies with Policy 9.1H of the General Plan ensuring that the landscaping preserves and enhances g the ecological and scenic qualities. This is done with the natural desert landscape surroundingthe proposed church and school. p p DEVELOPMENT REVIEW BOARD ACTION: On May 11, 1999,the Development Review Board recommended approval of this landscape plan by a 6—0 vote. RECOMMENDATION: Staff has reviewed the request for a landscape plan for this parcel and recommends approval along g wi th the condition attached as Exhibit"A." SUGGESTED MOTION: I move to recommend approval of OV 12-99-06, Church of the Apostles Landscape Plan alongwith the ' . p p condition attached as Exhibit"A." OR TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 oft I move to recommend approval of OV 12-99-06, Church of the Apostles Landscape Plan alongwith the p p conditions attached as Exhibit"A" and the following added conditions: OR I move to continue OV12-99-06, Church of the Apostles Landscape Plan. ATTACHMENTS: 1. Exhibit"A"-Conditions for Approval 2. Reduced Copy of Landscape Plan Q^-_,()--- Pl. • • Zoning Administrator 717.A a Town Manager F:\ov\ovi2\1999\0V12-99-6\LPTC2.RPT EXHIBIT "A" OV12-99-06 CONDITIONS FOR APPROVAL CHURCH OF THE APOSTLES LANDSCAPE PLAN 1. Per Section 14-207, all graded areas not landscaped, stabilized or developed upon expiration of the grading permit shall be revegetated in conformance with the following standards within 30 days of expiration. The treatment of all graded areas shall require the approval of the Development Review Board. 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Water Utility Director SUBJECT: Public Hearing on Resolution No. (R)99-79 , A Resolution of The Town of Oro Valley, Pima County, Arizona Increasing Water Rates for the Town of Oro Valley Water Utility SUMMARY: At its Regular Session on June 16, 1999, the Oro Valley Town Council adopted Resolution No. (R)99-62 providing Notice of Intent to increase water rates for the Town of Oro Valley Water Utility. As part of the Resolution, an Oro Valley Water Utility Rate Report containing the proposed changes was placed on file with the Town Clerk for public inspection. The Notice of Intention was advertised in accordance with Arizona Statutes. The resolution before you would adopt the water rates preferred by Mayor and Council. The Mayor and Council have the opportunity to consider a specific rate structure other than those detailed in the Rate Report attached as Exhibit "A" to Resolution Na (R)99-62, so long as the increase is no more than those identified in the Rate Report. Should the Council approve this resolution, the proposed increase for the water rates would take effect on August 21, 1999. FISCAL IMPACT: The result of the proposed increases in water rates would allow the Utility to recover the costs associated with the operation and maintenance of the Oro Valley Water Utility. WATER UTILITY COMMISSION RECOMMENDATION: The Water Utility Commission has forwarded, with its 1999 Annual Report, a recommended rate structure. That particular rate structure was detailed as Scenario A in the Rate Report attached to Resolution No. (R)99-62. STAFF RECOMMENDATION: Staff concurs with the recommendation of the Commission. ATTACHMENTS: 1. Resolution No. (R)99-79 A Resolution of the Town of Oro Valley, Pima County, Arizona Increasing Water Rates for the Town of Oro Valley Water Utility. 2. Possible Exhibit A(Rate Schedule for Scenario A) 3. Possible Exhibit A(Rate Schedule for Scenario B) 4. Possible Exhibit A (Rate Schedule for Scenario C) TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 SUGGESTED MOTION: I move to approve Resolution No. (R)99- 79 A Resolution of the Town of Oro Valley, Pima County, Arizona increasing water rates for the Town of Oro Valley Water Utility, attaching as Exhibit "A" the set of rate schedules associated with Scenario A. Or I move to approve Resolution No. (R)99-79 A Resolution of the Town of Oro Valley, Pima County, Arizona increasing water rates for the Town of Oro Valley Water Utility, attaching as Exhibit"A" the set of rate schedules associated with Scenario B. Or I move to approve Resolution No. (R)99- 79 A Resolution of the Town of Oro Valley, Pima County, Arizona increasing water rates for the Town of Oro Valley Water Utility, attaching as Exhibit"A" the set of rate schedules associated with Scenario C. Or I move to approve Resolution No. (R)99-79 A Resolution of the Town of Oro Valley, Pima County, Arizona increasing water rates for the Town of Oro Valley Water Utility, with the rate schedules as follows: Or I move to C"--> er lity Direct Town Manager RESOLUTION NO. (R) 99 - 79 A RESOLUTION OF THE TOWN OF ORO VALLEY, PIMA COUNTY, ARIZONA TO INCREASE WATER RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY WHEREAS, ORO VALLEY has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within and without the Town's corporate boundaries pursuant to the provision of Arizona Revised Statute 48-571 et. seq.;and WHEREAS, ORO VALLEY is a political subdivision of the State of Arizona, and pursuant to Article 13, Section 7 of the Arizona Constitution, is vested with all the rights, privileges and benefits and entitled to the immunities and exemptions granted municipalities and political subdivision under the Constitution and laws of the State of Arizona and the United States;and WHEREAS, ORO VALLEY now finds it necessary to increase water rates for the Oro Valley Water Utility in accordance with Arizona Revised Statute 9-511.01; NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY: 1. That the Oro Valley Water Utility water rates are increased as described in attached Exhibit "A". 2. That the Mayor of the Town of Oro Valley, and other administrative officials are hereby authorized to take such steps as are necessary to implement the water rates increases effective thirty (30) days from the date of this resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona this 21st day of July , 1999. BY: Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Dan Dudley,Town Attorney POSSIBLE EXHIBIT 'A' TO RATE RESOLUTION RATE SCHEDULE FOR SCENARIO A SCENARIO A PROPOSED RATE SCHEDULE NON-CITY CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 9.85 10.81 0.96 1.73 1.73 1.85 1 24.70 27.10 2.40 _ 1.73 1.73 1.85 1.5 49.40 i 54.19 4.79 1.73 1.73 1.85 2 79.00 86.66 7.66 1.73 1.73 1.85 3 158.00 173.33 15.33 1.73 1.73 1.85 ..4 250.00 274.25 24.25 1.73 1.73 1.85 6 500.00 548.50 48.50 1.73 1.73 1.85 8 850.00 932.45 82.45 1.73 1.73 1.85 THE BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 10,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% SCENARIO A PROPOSED RATE SCHEDULE "CITY" CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 7.909.35 1.45 1.73 1.73 1.85 1 19.70 4 23.40 4 3.70 1.73 1.73 1.85 1.5 39.95 47.07 7.12 1.73 1.73 1.85 2 63.00 74.83 11.83 1.73 1.73 1.85 3 127.80 150.57 22.77 1.73 1.73 1.85 _ I 4 200.74 237.50 36.76 1.73 1.73 1.85 6 401.48 475.00 73.52 1.73 1.73 1.85 8 N/A N/A N/A 1.73 1.73 1.85 THE CURRENT BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 10,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% SCENARIO A PROPOSED RATE SCHEDULE OV#1 CUSTOMERS METER CURRENT PROPOSED PROPOSED CURRENT PROPOSED PROPOSED SIZE BASE RATE BASE RATE INCREASE COMMODITY COMMODITY INCREASE PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 10.22 10.22 0 1.85 } 1.85 0 1 25.55 25.55 0 1.85 1.85 0 1.5 51.10 51.10 0 1.85 1.85 0 2 81.76 81.76 0 _ 1.85 1.85 0 3 163.52 163.52 0 1.85 1.85 0 4 255.50 255.50 0 1.85 1.85 0 6 511.00 511.00 0 1.85 1.85 0 8 N/A N/A N/A 1.85 1.85 0 THE BASE RATE INCLUDES 2,000 GALLONS OF WATER SCENARIO A PROPOSED RATE SCHEDULE WHOLESALE CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 6 500.00 548.50 48.50 1.45 1.55 1.67 THE BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 1,800,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 1,800,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% POSSIBLE EXHIBIT 'A' TO RATE RESOLUTION RATE SCHEDULE FOR SCENARIO B SCENARIO B PROPOSED RATE SCHEDULE NON-CITY CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 9.85 11.12 1.27 1.73 1.73 1.85 1 24.70 27.87 3.17 _ 1.73 _ 1.73 1.85 1.5 49.40 55.75 6.35 1.73 1.73 1.85 2 79.00 89.15 10.15 1.73 1.73 1.85 3 158.00 178.30 20.30 1.73 1.73 1.85 4 250.00 _ 282.13 32.13 1.73 1.73 1.85 6 500.00 564.25 64.25 1.73 1.73 1.85 8 850.00 959.23 109.23 1.73 1.73 1.85 THE BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 10,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% SCENARIO B PROPOSED RATE SCHEDULE "CITY" CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 7.90 10.02 2.12 1.73 a 1.73 1.85 1 19.70 25.05 5.35 1.73 1.73 1.85 1.5 39.95 50.42 10.47 1.73 1.73 1.85 2 63.00 80.12 17.12 1.73 1.73 1.85 3 127.80 144.22 16.42 1.73 1.73 1.85 4 200.74 254.33 53.59 1.73 1.73 1.85 6 401.48 508.66 107.18 1.73 1.73 1.85 8 N/A N/A N/A 1.73 1.73 1.85 THE CURRENT BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 10,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 10,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% SCENARIO B PROPOSED RATE SCHEDULE OV#1 CUSTOMERS METER CURRENT PROPOSED PROPOSED CURRENT PROPOSED PROPOSED SIZE BASE RATE BASE RATE INCREASE COMMODITY COMMODITY INCREASE PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 5/8 X 3/4 10.22 10.22 0 1.85 1.85 0 1 25.55 25.55 0 1.85 1.85 0 1.5 51.10 51.10 0 1.85 1.85 0 2 81.76 81.76 0 1.85 1.85 0 3 163.52 163.52 0 1.85 1.85 0 4 255.50 255.50 0 1.85 i 1.85 0 6 511.00 511.00 0 1.85 1.85 0 8 N/A N/A N/A 1.85 1.85 0 THE BASE RATE INCLUDES 2,000 GALLONS OF WATER SCENARIO B PROPOSED RATE SCHEDULE WHOLESALE CUSTOMERS PROPOSED PROPOSED METER CURRENT PROPOSED PROPOSED CURRENT COMMODITY COMMODITY SIZE BASE RATE BASE RATE INCREASE COMMODITY TIER 1 TIER 2 PER 1,000 GALS. PER 1,000 GALS. PER 1,000 GALS. 6 500.00 564.25 64.25 1.45 1.55 1.67 THE BASE RATE INCLUDES 1,000 GALLONS OF WATER TIER 1 COMMODITY RATE CHARGED ON 0 - 1,800,000 GALLONS TIER 2 (conservation) COMMODITY RATE CHARGED ON USAGE OVER 1,800,000 GALLONS TIER 2 THRESHOLD POINT FOR THIS METER SIZE DERIVED BY MULTIPLYING AVERAGE USAGE BY 125% POSSIBLE EXHIBIT 'A' TO RATE RESOLUTION RATE SCHEDULE FOR SCENARIO C SCENARIO C DID NOT MEET THE FINANCIAL CRITERIA PREVIOUSLY ESTABLISHED, THEREFORE, NO PROPOSED RATE SCHEDULES WERE DESIGNED FOR THIS FINANCIAL SCENARIO. JOHN GORSKI '(t)cv-‘ t(LCP -4C-(C)14,+ ttl I;.77,7,771TAr 7f,t ,M0A limpT rx1 I i(YOWL fir• . War, Is.,b414 / 0 1 • ly„ 11 cw-A- T\ Liq '15S ijt ci - JOHN GORSKI P. 02 JULY 21, 1999 TO: ORO VALLEY TOWN COUNCIL FROM: JOHN AND MAUREEN GORSKI TUCSON, AZ 85742 RE: INTENT TO INCREASE WATER RATES DUE TO A CLASS TONIGHT, WE ARE UNABLE TO ATTEND THE MEETING SO WE WANTED TO PUT INTO WRITING OUR EXTREME OBJBCTION TO ANY FURTHER WATER INCR.EASB BY ORO VALLEY. WHEN ORO VALLEY PURCHASED CANADA HILLS WATER COMPANY OUR WATER RATE AT THAT TIME INCRgASFD BY SIXTY-FOIIR (60) f + ifl THE COMPANY STATED, OH, WE WERE ALL DUE FOR A "SLIGHT" INCREASE. I DON'T CALL 645k SLIGHTS + " 11 SEVENTY-FIVE (750) OF ORO VALLEY GOLF COURSES ARE WATERED BY UNDERGROUND WATER. WHEN YOU MAKE THEM CHANGE TO RECYCLED WATER THEN I MIGHT CONSIDER PAYING MORE. YOU WANT HOMEOWNERS TO CONSERVE WATER BUT YET THESE GOLF COURSES ARE USING THE BLOOD OF LIFE, PRECIOUS GROUND WATER, EACH AND EVERY DAY. I BELIEVE FROM A WATER COMPARISON CHART ORO VALLEY IS NOW THE HIGHEST WATER RATE. NO, WE ARE EXTREMELY AGAINST ANY FURTHER WATER INCREASE. THEY WILL HAVE TO DO WITH WHAT THEY HAVE. I DID NOTICE A NEW POSITION OF WATER COMMISSIONER OR SOMETHING LIKE THAT CREATED. GET RID OF THAT POSITION AND USE THAT SALARY. ‘`\1' fp_s5 (yo ( _____________ aL TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: JULY 21, 1999 TO: HONORABLE MAYOR&COUNCIL FROM: David G. Hook,P.E. Water Utility Director SUBJECT: Resolution No. 99- 80, Providing Notice of Intent to Increase Service Fees and Charges for the Town of Oro Valley Water Utility. SUMMARY: At the July 7, 1999 Mayor & Town Council meeting staff presented a request to approve a resolution Providing Notice of Intent to Increase Service Fees and Charges and establish a public hearing on August 4, 1999. Staff inadvertently indicated the incorrect public hearing date (August 4 was not at least 30 days after July 7,). Staff requests that Mayor & Town Council re- approve the request except the date of public hearing would be September 1, 1999. At the June 21, 1999 meeting the Water Utility Commission moved to forward a recommendation to the Mayor and Council for approval of the proposed service fee changes and the transition from manual read meters to radio read meters. When the Town of Oro Valley purchased the private water companies in 1996,the Town Council adopted a Schedule of Rates, Fees and Charges. While the water rates have experienced changes throughout the last three years, the other fees and charges have remained unchanged. Since that time, the material costs for meters have increased as well as the Utility's labor costs. As recommended in the Water Utility Commission's April, 1999 Annual Report, staff has reviewed the various service fees and charges. Four of these charges require an adjustment while the balance of the charges may remain as originally established. Staff is proposing that an additional fee associated with backflow prevention installations be added to the schedule of charges. It is staffs recommendation that the fees and charges be adjusted to recover the increased costs as proposed in the attached Report. Related to the meter fee adjustment, staff is recommending that the Mayor & Council consider a recommendation regarding switching from traditional manual read water meters to those that can be read electronically via radio frequency. Under this scenario, the developers/builders would pay for these meters as they have in the past. In future years, the utility would budget for retrofitting the existing meters. Upon completion of installation of the entire system with radio read meters, it is expected that the meter reading labor staff could be reduced to 1 FTE (full time employee) from the current staffing of 4 FTE's. FISCAL IMPACT: The proposed increases in Service Fees and Charges would allow the Utility to recover the costs associated with the services and lowering of costs over time. ATTACHMENTS: 1. Resolution (R) 99- 80 Providing Notice of Intent to Increase Service Fees and Charges for the Town of Oro Valley Water Utility. 2. Oro Valley Water Utility 1999 Service Fees and Charges Report 3. ARS 9-511 Re: Adjustment of Service Fees and Charges. RECOMMENDATIONS: Staff respectfully recommends the adoption of the attached Resolution (R) 99- 80 as the Town's Notice of Intention, with Exhibit "A" serving as the required Service Fees & Charges Report for public review, and establishing a public hearing on the matter for September 1, 1999. tri TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 SUGGESTED MOTION: The Mayor and Council may wish to consider one of the following motions: I move to approve Resolution (R) 99- 80 Providing Notice of Intent to Increase Service Fees and Charges for the Town of Oro Valley Water Utility. I further move that staff publish the Notice of Intention as required ARS 9-511-01.A.2 so that a public hearing on the matter may be held on September 1, 1999. I further move that staff make Exhibit "A" — Oro Valley Water Utility 1999 Service Fees and Charges Report available to the public as required by ARS 9-511.01.A.1. Or I move to deny Resolution (R) 99-80 and not formally consider adjusting the Service Fees and Charges at this time. Or I move • 40rw. to tility Dire o . Jiff I ' Town Manager RESOLUTION NO. (R) 99 -80 A RESOLUTION OF THE TOWN OF ORO VALLEY, PIMA COUNTY, ARIZONA PROVIDING NOTICE OF INTENT TO INCREASE SERVICE FEES AND CHARGES FOR THE TOWN OF ORO VALLEY WATER UTILITY WHEREAS, ORO VALLEY has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within and without the Town's corporate boundaries pursuant to the provision of Arizona Revised Statute 48-571 et. seq.; and WHEREAS, ORO VALLEY is a political subdivision of the State of Arizona, and pursuant to Article 13, Section 7 of the Arizona Constitution, is vested with all the rights, privileges and benefits and entitled to the immunities and exemptions granted municipalities and political subdivision under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, ORO VALLEY now finds it necessary to consider raising service fees and charges for the Oro Valley Water Utility in accordance with Arizona Revised Statute 9-511.01; NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY: 1. That Notice of Intent to Increase Service Fees and Charges is hereby given for the Oro Valley Water Utility. 2. That a public hearing be held on the proposed increases at a regular meeting of the Mayor and Council at 7:00 PM on September 1, 1999 in the Council Chambers of the Town of Oro Valley, Town Hall, 11000 N. La Canada Drive, Oro Valley,Arizona. 3. That Exhibit "A" attached hereto be made available to the public in the office of the Town Clerk for review and comment prior to the public hearing. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Pima County, Arizona this 21st day of July , 1999. BY: Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Dan Dudley, Town Attorney EXHIBIT "A" Oro Valley Water Utility 1999 Fees & Charges Report Report in Support of Proposed Increase in Service Fees and Charges Contents Current and Proposed Meter Fees Cost Comparison: Manual Read Meters vs. Radio Read Meters Current and Proposed Service Charges Assumptions QQ O O O O O O O O O O O O W o 0 0 0 0 o O o 0 O O O c? III a o 0 0 0 0 ori U) o 0 0 In 0 2 aW In c) a) CO CO CO CO t- C) O U7 "zr N .6 Li_ T- N CO 10 U) CO CO CO t`- CID N` N C?) 0t- N cn tet= H (24 CL . o O O O O O O o O O O H H H I-- o 0 0 o O O O a a a a (l) (I) Cl) Z o o 6 0 0 0 0 0 0 0 o 0 0 0 Ww o CO Ln Lf) 7t 7t' n IQ Ln O U o U IX W r- CO CO 7t 't- II. N- N- CO co Ce L e-- r 0 A - , N- CD N- Ln N U) 10 N- Nom- Q) CO CO Q) O J cc O N- r-- Ln N- CD CO N (3) r- 7t- Ln --II- ,-- 0) Q) zt O N CD O Co CO r" < (l) < co 0) co In Lr) 10 CO 1--- 0) I-1) rt CO N H H H r co co co co co co co Ln N- N 0) 0.5 O w (/) t-- i-- i- N C") zt H Hoz U — + + < N co co -t CD CD O o 0 O O CO CO Q N N- CD CO Co L Ln Lf) U) N N CC W w = N (0 Co CO -� r .- Q) 0) cc cX) N N O ] 1 co co CO CO N- N- N- N- N- CO CO (0 CD 06 CO a- r- r a-- W J CLLn o r N U) Lr) N` N- O 0) 10 CO O < W (i, 0,ccD ,t. 0 Co co N- `1" Ln N CO CO r- N- cf) N` CO a) N co N N- CO Q) N CC r-- T-- O N- U) CO W U j 2 o CO �t LC) N N- CO 't- Co o N- N�- a-- N Cr) d" -fi U '66- IC O CC o 0 0 0 0 0 0 0 0 0 0 o aC 2 co I in in Ln 10 Ln Ln Ln 10 Ln Ln Ln Ln Ln 06n (n z F- C a: n O W4 • _ • o c7 2 � J u) o 0 o Ln Ln Ln Ln Ln Ln � � a •�, Q W I- i Oin LOO N- N- N- O O O N N ti N Cv 06 D _ CV W r-- -,--- N N H a Cll cU Ce ...... Z z = • o E 0 L TJ O CU C LL H J O V ' Q fes- '-- r-- T- N N N N N N CO CO CO CO 0.5 = O L to o I-- C3 U) © (� a a) IA �-- ") ? — w E -c) M (ni0 0 (1) ,--- w CD N N 45 .n ata D c CL (1.3 wO I o ? — C m O 0 QZ .opo uJ (La - o 1.1- Z -0 (1)C� — C 11 N I.:_ DC C C C -0Jww - L C �] (U Q (n �- it (U CU L (Q (D C) Q) 0 N 0 Q) o o a. , , a) 0 Q v _D -v c a C a c a_ c o_ C L L 0 0 a. a. U X a N N C -'5 E -n E -n E -� E - : _a ' a, i' CA .� C Cn (U cU XCeVL W co �' cn v ._. v v v _JJHO a.. a. 0 Ln, t- - •- CV, N N CO CO Vt dr CD co` co < O (.0 Q E/ WWw CL V J W W Q2 it Z Q O Cfl i-- Co �. CO C70 Co t1) co N O N 2 Q Q ci Cr) Co r I`- 0o Co a) N d: , U. W O a) U) Co N r- a) Co -,-- ..o U. cD N N T- r-- i-- co ti H J In in in r-- ,-- ,- r-- r- r-- N C7 co V) (n f4- 0 W O u) E H > d c W Ce Jw oI- tti O cn g Z Q r- c0 CO O N- N- tf) 7- N ti M N C) 'd: to lf) N- O < c0 t .,- Q) C� 1 (ci r) N a) O Co° N 06 V) H W co Q) Co LC) ID CO N- CO to N- N CT) H r- r- Co to In tD 7-- 7-- 7- N CO- d' O r W 0 0 0 W [L 0 J a F 4 -- Q c.n Z a J w Q w CO H Z 0 CO O CO N CO Cr) a) Co CNO CNG (0 Coo 2 to CO r� 7r o rn O O W ti c\i a) Q) d- 4 Co co co N N o o 0.6 O H e N 11" N CO O Co N to lf) CO If) Cr) If) H Z U) J t-- CO tf 7 In t-. 1-- N N. 4- O cn cj a H H O co Z � � N � a a 45 acn w z aLL Cii O -U >, Z Z c v cn 0 v -D c -o C C C c W �. c a a._ a) (U - cU a) o a) o a) o a) o a) • a 5co , v C a. C Q c a c a C A. U X (gyp N N � `' E O L' E O `_ E O E IP_E O Cr 0 c W Oo ? V 2 U 2 U j U 2 O V O.. 0 Ln 7-- r-- T--- N NN, CO CO d' CO CO o0 L..0 H a) Z U 000000aa �•-� � o o 0 0 0 0 o a o . Cl) Cl) ro A LL- N o tri .' it 0 U U Q.43 Q_ coo 0 U • o 0 • 6 N E) E p;s' L 0 O w a) (I) W 000000000 -•� -., V -'-' o w o 0 0 o O 0 0 0 0 o a ca - OU_ a 10 a a600tn10U6) a) a) N N in N N "t' U) CO p_, a ~ 0 0 O 0 6 N ca Ea Q CD In to to Lc)• dam'• Q O Q • Q O O O o cl, Z cr) Z N F- F- Z U N N N N CO 0 Q W = N O O N Q QQ co d- to to d' c) d' Q Wcri M � M H H o0 cZ Z Z 6 Z 0 . a - J Q U) o r W H Q Q Q Q o Q 06 Q Q Q H O Z Z Z Z C\j Z co Z Z H E. Z < U t-- 2 2 U) ta V 0 H o d o cY) O cn cn Q) mF- • rnrn �- o < < < co22 < 4 .0 cni n 0 a) 4-- .,.� a) -o (� O � � � r � Z Z Z N F-- {- z c � `�' C °S � a) co a� IX - - o -� n a v c W O o0 o a a cC O I I- M 0 L U) d Ec CO o ti_---. a5 c, J W W a) `' x c r t- `- +�- C (13 L .- U) CD a) c� E o a) o s o En E L a3 a) Q .o- . 1--- •-= o o t. 0 ' :E a o- a s ft u= a) I W a) c W Tii 0 00 to W V rn U E u u I E o a) a) u.. E E E L �-- L E-- Z v w -c c c I.0 a_ C c o Cd o Q w 0 ▪ o o o o C c W a U) • _ — C -C_ _ ,-• 2 i� ti N }- u.. t� n c c u- ,o *c o E c a) . o ZOO C� CL' O ' a) cri 0 W . w W C C �' ? o a) oCD> c ° 0 U) U) U) U) 0 °) -D a o j- ww a. I- UUQ E a, _c o Q to ( L ( a) c CB 2 c a- o `' W II II It II ii 76 O D U Q) a) 3 a) +r L 1. 1. L L .c L- > 0 Q o a) a) (r 'v E c o o E o o 2 O O o O o > a) c 4 4-- 0 43 Q � W cn 0 o � � ° ro cox o 2 �" � civ coo c�a � ID (la > � � a) CeWW a) ai ani o N n > a) ro a s u) JJJJJF- Om2OL O tt a. Z w to 2 E O I o cn,U o W Q } • Oro Valley Water Utility Assumptions: Proposed Fee Increases — Other Services Assumptions used in determining costs to provide services: New Service Establishment Fee CSR I handles phone call, completes paperwork, data entry, filing, forwards to USO I for turn on. CSR I = 15 min. USO I = 1 hr. 5 min. (inc. travel time) Service Reconnection Fee CSR II processes delinquent account (phone calls, prints bills, accepts payments, prepares turn off notice) and forwards work orders to USO I for turn off. USO I turns water off and back oil atter payment has been received. CSR II = 15 mill. USO I = I hr.5 min. (inc. travel time) Service Reconnection Fee (after 5PM) Same as Service Reconnection Fee with exception that USO 1 is paid time + one half with a minimum 2-hour call out pay feature. Meter Re-Read Fee CSR I handles phones calls (before & after), writes work order and/or verbally notifies USO I. USO I reads meter. CSR I = 15 min. USO I = 1 hr.5 min. (inc. travel time) Insufficient Funds/Return Check Fee Accountant receives returned check from bank & processes in finance dept., Forwards to CSR 11. CSR II debits account, provides written notice to customer, follow-up. Bank of America charges $2.50 per item. Accountant = 30 min. CSR II = 30 min. Customer Security Deposit No costs are incurred. Security deposit is automatically billed on first bill and held as insurance for non-payment. Refunded after 1 year plus 5% interest. Hydrant l 'Ieter Deposit (Equipment:) Deposit is for fire hydrant meters used for construction water in the event the meters are damaged, lost or stolen. In addition, the customer would be charged a security deposit for non- payment of account. Both the hydrant meter deposit and the security deposit will be refunded when the meter is returned plus 5% interest. Delinquent Payment Fee No costs incurred. Fee is to encourage timely payment of water bills. Backflow Prevention Installation Permit USO III coordinates with contractor installing device, visits site to inspect installation and verify that device and installation meets Town specifications. If work is in order, USO 111 unlocks meter and begins water service. After initial testing results are received, USO III updates backflow data base. USO III = 1.5 hrs. (inc. travel time) � w • Oro Valley Water Utility Assumptions: Proposed Fee Increases— Other Services Customer Requested Meter Test At customer's request, USO I to remove customer meter and install temporary meter. Meter is returned to manufacturer to test for validity of measurement. If meter is found to be accurate, USO I removes temporary meter and replaces customer meter. If meter is found to be p y p inaccurate, USO I removes temporary meter and installs new meter. Costs to be recovered p ry include therevailin manufactures testing costs, including shipping, USO I labor, benefits, p g travel time and overhead. Costs and times will vary depending on meter size and location. Destruction of Property Costs will vary depending ding on type and extent of damage. Costs to be recovered include material p costs to replace damaged equipment, labor, benefits, travel time and overhead costs incurred to make the repairs. Service Area Inclusion Fee Nominal fee for administrative time to complete the paperwork. Jun-X78-99 10:28A ORO VALLEY TOWN ATTORNEY 520 297 3927 P.05 § 9-511 CITIES AND TOWNS .2". 1 Note 9 Title 9 dirt-riot lay with respect thereto. City of o'r'dinances are designed to benefit the public at Scottsdale v. Municipal Court v( City of Tempe large and r•t+srilt in a benefit to the municipality (1962) 90 Ayir. 313 304 f.2d 637. which is "equitable and reasonable- in light 01 the mount expended by the municipality. tip. A municipality may require installation nt ret- Attv V`•tt Nu. 190.034, roliltittp devices for water hackllow prevention. even though the municipality tailed ti) cnlnrcc: 12. Contracts to supply, water • similar ordinances in The past. Op.Attv.Gen. Nu. 190-034. Contract between city and developer of cosi.. dcntlal subdiviSi.)tn pr nviding for water supply 10. Television translator system was not void Irvin its inception, hitt only to 11 trlevisir i,t -vste n has been grant- a tint that such i von tilt ttif r ingot upon tights cd a tel tllicote vi public convenience and tiros- .lt water utility to provide. pursuant to crrufi- sit•• as at public utilitt. by the corporation corn- tails'of convenience and necessity, water to purt mission, facility could be acquired by city gos- vi airy covered under the contract. Sonde Vic• ei ntlient hot only after- a successful election in Water Cy. Inc, v.City of Phnrnrs(App. 19I8(t) under 4 0-514- it facility was opc'-ated as a 127 Aria. 42. 617 P.2d 1138_ private concern. city could purchase it nrttripht without such on election. Up Attv.Cietr.Nu. 65-- 13. Eminent domain-Itt general 39-L. See. also. Notes ul Decisions Iully's iiig § 9- t'itc goventrnr•nt could for benefit Tit citizens .51 b. rel cutrrrnion tt. .Xenon operation vl rxistine City had tight ;tt any time to acquire. either teles r im. and make:i ttillttn•us by mutual averment lit' by condemnation, err- diartu tri all its eit�t��irtrrs, to he included wit!, tificate of convenience nod necessity held Iw mernitllti water. )CwCt, and g111r1pt• charges. water luilits for residential sUUdivisi)11 fievClot;- Up.Atts-(,en. No..05-39-L. titent in county in which the city was Located. City Would appropriate rax money to install Senile Vista; Water Co.. Inc. v. City of Phoenix and ttiaitrtuiii u tiunslatvr television system ii (App. 1')61)) 127 Ariz. 42. 617 P.2d 1 1 z8. approved by a_special election ul the t'egistered City of Tucson has been granted the power of voters of the c itti. UN.Atty t wn. No. .57-112. eminent domain by means vi its charter and of 11. Water-lit general this -ection and 4i 9-516. 12-1111. and l2 Action Ley city in taking coater company s 1 1 12. C'itirens Utilities Water Co. v. Supettot properties.sutne of which weir outside city and Court In and Fur Pima County(1972) 1118 Ariz. did not serve citv's ritt-rrns, cc as not arbitrary. 296. 497 1'2d 5a.ceitiuruti denied 93 S.Ut.-3t2• where it was desirable that city have a "muerte)• 409 I;.S. 11122. 34 L.Ed.Ztl 314. pe:elitan concept'.of supply and control vi% attet. 14. Public use. eminent domain and to "beef up- file pt otec tion by having an integrated water- tis steal throughout the area. Untrammeled right t0 use property to he coti- atrci to have control of cnnctruction and expense downed is nut criterion of whetliri' tie to he of utility facilities itt areas 01 potential growth;, etude is a public one. Citizens Utilities Water and to hook up water company s fac iliticc with C.o. v. Superior Court In and For Pima County city's cc) as co etgttalire supply arid demand itt t 19721 108 Ariz. 296. 497 P.2d 55. certiorari dilfrtetit areas. and natural future growth ul denied 93 S.Ct. 4 a. 40') U.S. 1022. 34 L.Ecl.2d city would eventually require all of water corn- '414. pany's properties. Citizens Utilities Water Co. v. Superior court to and FOC Pima County 15. Water,eminent domain (1972) 108 Aril.. 296. 497 P.2d 55. certiorari A city, in condemning a water company's denied 93 S.Ct.462,409 U.S. 11)22. 34 L.Ed.2d properties. Ittav anticipate its future growth. 314. Citizens Utilities Water Co. v.Superior Coach In A municipality may require installation of Wa- and For Pima County(1972) 10A Ariz. 296, 497 ter backflow prevention devices and may pay P.ld 55.certiorari denied 93 S.Ct.462.409 U.S. for and install such devices, so long as the 1022. 34 L.Ed.2d 314. • § 9-511.01. Water and wastewater business; rates: procedures A. A municipality engaging in a domestic water or wastewater- business shall nut increase any water or wastewater rate or rate component, fee or service charge without complying with the following: 1. Prepare a written report or supply data supporting the increased tate or rate component, fee or service charge. A copy of the report shall be made 254 N Jule-QB-99 10:29/A ORO VALLEY TOWN ATTORNEY 520 297 3927 P .06 #_7). UTILITIES: MUNICIPAL OWNERSHIP § 9-512 ch. 5 • byfiling a copy in the office of the clerk of the ,, available to the public g to the public hearing►t municipality governing hoard at least thirty days prior 77. described in paragraph 2 cal this subsection. 7, Adopt a notice of intention by motion at a regular council meeting to increase water or wastewater rates or rate components, fee or service charge and set a f or a publichearing date on the proposed increase which shall be held not less than thirty days after adoption of the notice of intention. A copy of the place of such hearing shall he notice of intention showing the date, time and '• •rr • in a newspaper of general circulation within the boundaries pttthl�511ed one time tof the tnuntr,pattt.,' v riot less than twenty days prior to the public hearing date. B. After holding the public hithe governing body mai- adopt. by hearing, ordinance or resolution, the proposed rate or rate component. fee or service charge increase or any lesser increase. C. Notwtiht.titdn�.i § 19-112, subsection B, the increased rate or rate c:umpV11enc, fee or service charge shall become effective thirty days alter adoption of the ordinance or resolution. Adctecl by Laws 1992. Lb. 257. § 1. H{I,toricui and Statutory Notes Live; 1992. t.h. 257. § 2. pi oxides: and set vire Lit:ti les u(ter the effective "5cc..2. Applicahility date(il [ltis act.- -The moot'.inns ut this act apply unly 10 water and wustcwatet fairs and rate euni1)nnerUtS.Ices § 9-512. Issuance or bonds: service rates P A. la The municipal corporation, furany and all purposes provided in § 9- 51 I, may issue and sell bonds bearing interest nut to exceed nine per cent per annum. B. When the enterprise or public improvement has been purchased or constructed by means derived from the sale of bonds, the municipality shall fix the rates charged kw service to the public as nearly as practicable so as to pay the interest eS t and not less than three per cent per annum on the principal of the hoods. in excess of the expense of maintenance and operation. Amended by Laws 1970. Ch. 89. § 2. eel. April 27, 1970- Historical and Statutory Notes Source: ''It is the intent of this act to cope with the 2serious problem of rising interest rates which 19 e 1. Ch. 11. 1 have as a consequence made various types (11 Laws Iclt X128. 4Uy. bonds unmarketable. The cnactruent of this bill 1933. ch. 77. § 1. will permit the state and its political subdivi- t;cidt: 1939. 4 16-602. siutts to continue to market its bonds when required and therefore allow the state and its Laws 1970. Ch. 89. 4 t provides: political subdivisions the opportunity to main- "Sectiun 1. Legislative Intent taint itself in a proper manner.- Crum References Financing utilities by the issuance of bonds. see 4 9-521 ct seq. 255 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: 7/21/99 TO: HONORABLE MAYOR& COUNCIL FROM: Bayer Vella, Senior Planner SUBJECT: Approval of Environmentally Sensitive Lands Ordinance Technical Advisory Committee, Public Advisory Committee, and Town Council Liaison BACKGROUND: The Town initiated Phase II of the Environmentally Sensitive Lands Ordinance (ESLO) project by conducting a public workshop on June 9, 1999. Phase II will involve resource inventories, public participation, development of alternatives to address preservation and enhancement, and drafting the ESLO. The establishment of a balanced Technical Advisory Committee (TAC) and Public Advisory Committee (PAC) are very significant elements of this effort. Our aim is to establish the two aforementioned committees as soon as possible. A proposed list of participants is attached. It is important to note that several names appear more than once due to multiple affiliations. By July 21, staff will have contacted each person to ensure that they will be available, if appointed by Council. We are currently developing an extensive PAC training seminar -- similar to those offered as part of the Sonoran Desert Conservation Plan. TAC: The TAC is charged with providing specialized review of technical issues like land survey protocol, resource value assessments, Oro Valley planning issues, conservation techniques, legal parameters, development impacts, inter-jurisdictional collaboration, etc. The committee will be vital in reviewing the resource survey approach/results and reviewing conservation/implementation techniques. The TAC must include a range of legal, conservation, biology, and land use specialists. The list of proposed members is attached. We drew upon a regional pool of technical experts to staff the proposed TAC. There is a particular emphasis on insuring that our efforts coincide with evolving plans in Pima County (Sonoran Desert Conservation Plan) and Marana. PAC: The role of the PAC is quite different than the TAC. It will be charged to help insure that the ESLO reflects the specific needs of Oro Valley citizens, special interests, etc. The PAC will guide the development of the vision fatement, goals & policies, issue identification& resolution, and the draft ordinance. TOWN OF ORO VALLEY COUNCIL COMMUNICATIONg Pa e 2 of 2 The PAC must include a proportional balance of a myriad of interests. The attached list was crafted in a manner to help ensure that it would be viewed by citizens as representative and inclusive. Each person on the PAC list is a Town resident. RECOMMENDATION: Staff recommends approval of the proposed TAC & PAC list, which is attached. In addition, we ask that the Council appoint a representative/liaison to the PAC. SUGGESTED MOTION: The Oro Valley Town Council may wish to consider one of the following motions: I move to approve the composition of Technical Advisory Committee and Public Advisory Committee members, who will guide the development of the Environmentally Sensitive Lands Ordinance, and I move to appoint as the Town Council representative on the PAC. OR move to approve the composition of Technical Advisory Committee and Public Advisory Committee members with the following conditions or changes and I move to appoint as the Town Council representative on the PAC, ATTACHMENTS: TAC & PAC List Dep. frnt Head OIAL )117/tCtti -- Town Manager \\OV PZD\PZl\PROJECTS\ESLO\Council TAC&PAC.docCOUNCIL TAC&PAC.DOC Town of Oro Valley Environmentally Sensitive Lands Ordinance Technical Advisory Committee (TAC) Contacted & Representation/Organization Name Interested Arizona Game & Fish/cons. biologist Sherry Ruther YES Land Developer Mark Weinberg YES Forest Service Tom Skinner MESSAGE Land Use Planner David Williams _YES Municipal Planner/Marana Joel Shapiro MESSAGE Natural Resource Conservation/TNC Peter Warren MESSAGE OV Parks & Recreation Mark Brosseau YES OV Water Utility/well-head protection Staff person MESSAGE Pima County Parks Mark Brosseau YES Pima County/HCP Maeveen Beehan/Julian Fonseca YES Sonoran Institute Lee Nellis, AICP YES State Land Dept. Arlan Colton MESSAGE State Museum/Archaeology John Madsen YES OV Planning &Zoning Commission Steve Ruble YES State Parks/Catalina Neil Donkersly/Jack McCabe _MESSAGE Public Advisory Committee (PAC) Contacted & Representation/Organization Name Interested CPI Graduate Chamber of Commerce Richard Underwood YES Development Community Bob lannarino Home Owners Associations Mark Lewis 'YES National Park Service/Pima Pinal Trail Joe Winfield YES OV Citizens at Large: Louise Rennaker Karen Rogers YES YES Patty Estes YES YES Bill Adler YES YES OV DRB Nancy Mager YES OV Neighborhood Coalition Hector Conde YES OV Parks & Recreation Gary Chandler YES OV Planning &Zoning Commission Dean McCook YES OV Town Council To be appointed 7/21 Realtor Ben Baker SAHBA Ken Kinared YES YES Sector Board 1 'Seeking recommendation Sector Board 2 Seeking recommendation _ 'or Board 3 Carl Boswell - 1bctor Board 4 Bob Toperzer ESLO TAC&PAC spreadsheet.xls TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Chuck Sweet, Town Manager SUBJECT: RESOLUTION NO. (R)99-81 PROPOSED INTERGOVERNMENTAL AGREEMENT WITH PIMA COUNTY FOR LIBRARY BOND PROCEEDS TO DEVELOP THE ORO VALLEY PUBLIC LIBRARY BACKGROUND: In the 1997 bond election, Pima County voters approved funding to establish a new northwest branch library. On August 5, 1998 a Library Technical Advisory Committee (LTAC) was appointed by the Oro Valley Town Council to facilitate discussions regarding the construction of a new Library on Town-owned property located adjacent to the Town Hall Complex. The original intent was to construct a 25,000 square foot building that would support approximately 80,000 volumes. The tentative cost estimate for such a facility was about $6.5 million, well above the $2 million available in County Bond Funds. After further discussions, the Council approved LTACs recommendation to Phase the roject, with the first phase consisting only of the 15,000 square foot library facility. This package would provide a basic branch library, without public meeting space or galleries. It could be constructed for a cost of$1,992,000 beyond the monies available from County Bonds. SUMMARY: After several additional meetings the LTAC put together a draft IGA for the design and construction of the Oro Valley Public Library. Again, this IGA covers only the first phase of the project, and will secure the $2 million dollars in bond funds for this project. A separate IGA will need to be developed later in the process, with the Tucson Pima Library District,to define the perimeters of operation of the new Library. The total cost of this project is now estimated to be $3,995,000. The County shall pay $2,000,000 from County bond funds for the Project, including approximately $20,000 for public art. The Town shall pay any and all costs of the Project in excess of allocated bond funds, including the costs of any change orders approved by the Town for unanticipated work. The Town's share of the total cost of the Project is estimated to be $1,995,000, of which approximately $19,995 is for public art. Several meetings have been held with Kate O'Rielly, Pima County Community Resources, and Mike Tuinstra, Pima County Facilities Management to review the IGA, and their comments have been incorporated. The County will forward the IGA to the Board of Supervisors for their review and approval at the August 3, 1999 Board of upervisors Meeting. TOWN OF ORO VALLEY 7OUNCIL COMMUNICATION Page 2 of 2 RECOMMENDATION: In order to implement Phase I of the Library Project,the Town must execute an Intergovernmental Agreement with Pima County. This type of agreement spells out all of the terms, conditions, and responsibilities required from both participating agencies and is necessary to protect each others interests relative to how the bond proceeds are allocated and expended. If all of the terms and conditions listed in the proposed Intergovernmental Agreement with Pima County meet with the Councils approval, it is staff's recommendation that it be approved at this time. SUGGESTED MOTION: I MOVE to APPROVE the proposed Intergovernmental Agreement with Pima County for the receipt of Library Bond proceeds, in the amount of$2,000,000, and to set forth the responsibility of both parties for the design and construction of the Oro Valley Public Library. XTTACHMENTS: Resolution No. (R)99- 81 2. Proposed Intergovernmental Agreement with Pima County / ! Town Manager F:INDIVID\LMT\LIBRARY\IGA.tcc RESOLUTION NO. (R)99- 81 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, AUTHORIZING AND APPROVING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND PIMA COUNTY FOR LIBRARY BOND PROCEEDS TO CONSTRUCTION THE NEW ORO VALLEY PUBLIC LIBRARY WHEREAS, the Town of Oro Valley has the authority to enter into contractual arrangements with other governmental agencies in order to provide services to its residents; and WHEREAS, it has determined that it is in the best interests of the Town and its citizens to enter into an intergovernmental agreement with Pima County regarding library bond proceeds for the construction of the Oro Valley Public Library; and WHEREAS, the approval of an intergovernmental agreement will further this goal by allowing Pima County to provide the funding for the construction of a library, which is hereby determined to be in furtherance of the public health, safety and welfare of the citizens of the Town; NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AS FOLLOWS: 1. That the attached Intergovernmental Agreement is hereby approved. 2. That the Mayor and the Town of Oro Valley and all necessary administrative officials are hereby directed and authorized to take all necessary steps related to the execution of said agreement. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 21st day of July , 1999. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor INTERGOVERNMENTAL AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF ORO VALLEY FOR THE ORO VALLEY PUBLIC LIBRARY DATED , 1999 Town of Oro Valley Community Development Department 11000 N. La Canada Drive Oro Valley,Arizona 85737 Telephone: 520.797.9797 Facsimile: 520.742.1022 1 Intergovernmental Agreement between Pima County and the Town of Oro Valley for the Oro Valley Public Library This Intergovernmental Agreement is made and entered into this day of 1999, by and between Pima County, a body politic and corporate of the State of Arizona ("County") and the Town of Oro Valley,Arizona, a municipal corporation ("Town"). Recitals A. Pima County and the Town of Oro Valley desire to develop community library facilities. B. County and Town desire to provide for the construction, development,maintenance, operation, and use of public library facilities (the "Project") at the Southeast corner of Naranja Drive and La Canada Drive in Oro Valley,Arizona. C. County and Town desire to define the terms and conditions under which the Project is to be designed, engineered, constructed, financed, operated, and maintained. D. The Pima County Board of Supervisors included the Project in the Bond Improvement Plan for the May 20, 1997 Special Bond Election. E. The County bonds authorized in the May 20, 1997 Special Bond Election allocated $2,000,000 for the Project. F. Construction of the Project is anticipated to commence on or before July 1, 2000 and is estimated to be completed approximately 10 months after the start of construction. G. County and Town agree that the Town shall design and construct the Project. H. County and Town may contract for services and enter into agreements with one another for joint or cooperative action pursuant to A.R.S. Sec. 11-952. I. County and Town are authorized by A.R.S. Sec. 11-952 to enter into a cooperative agreement for the establishment, development,maintenance, or administration of a public library. J. The Pima County Board of Supervisors adopted guidelines for bonding disclosure, accountability, and implementation of County bond program projects within other jurisdictions in Pima County Ordinance No. 1997-3 5, Section VIII, and Pima County Code Sec. 3.06.080. NOW,THEREFORE, for and in consideration of the mutual covenants, stipulations, and conditions herein' after contained the parties hereby agree as follows: 2 1. Purpose. The purpose ose of this agreement is to set forth the responsibilities of the parties for the design and construction of the Oro ValleyPublic Library as described in Exhibit A of this Agreement (the "Project"). 2. Financing of Project a. Total Cost of the Project. The total cost of the Project is estimated by the parties to be $3,995,000. The final cost of the Project shall be the actual sum necessary to complete the Project. b. County share. County shall pay$2,000,000 from County bond funds for the Project, including approximately$20,000 for public art. No County funds in excess of $2,000,000 may be expended for the project. c. Town share. Town shallP ay any and all costs of the Project in excess of allocated County bond funds, including the costs of any change orders approved by Town for unanticipated work. Town's share of the total cost of the Project is estimated by the parties to be $1,995,000, of which approximately$19,995 is for public art. d. County depositinescrow. Town shall give County at least 45 days prior notice that • Town will release a Request for Proposals to architectural and engineering firms to prepare pre • architectural and programmatic documents. Within 30 days of �Y receiving notice,County shall deposit$330,000.00 in an interest bearing escrow account from which Town can draw for payment. Any interest earned by the escrow account shall remain with the County. Town shall give County at least 45 days prior notice that Town will advertise for bids on a construction contract for the Project. Within 30 days of receiving notice, County shall depositin$1,670,000.00 an interest bearing escrow account from which Town can draw for payment. Any interest earned by the escrow account shall remain with the County. Following completion of construction,Town shall determine the actual cost of construction and public art. e. Permits. At no cost or expense to the County,Town shall provide or pay for all permits and sewer connection fees required in connection with the Project. f. Transaction privilege tax. Town agrees that the construction pursuant to this Agreement shall be exempt from any transaction privilege taxes levied by Town. 3. Town Obligations. a. Design and construction. Town shall administer the design and construction of the Project. To that end,Town shall prepare the consultant contract for design, select the consultant,who will create construction contract documents, bid the construction contract, choose the contractor, and supervise and inspect the construction of the Project. Town shall provide County with copies of all technical documents and drawings required for design of the Project. 3 b. County participation. Town shall provide County the opportunity to participate in and provide advice on all major items (programming, schematic design, etc) that affect the design and operation of the Project. Town shall include in its contract for design a requirement that the consultant closely coordinate with County relating to the design of library facilities. Such design requirements shall be approved by Town prior to incorporation in the design. c. Working drawings and specifications. Following completion of the Project design, the working drawings and specifications shall be provided to County for approval, which approval shall not be unreasonably withheld. d. Public participation. Town shall manage all public participation processes deemed necessary by Town and County for design and construction of the Project. County shall be invited to participate in the public participation process. Town shall coordinate all public meetings on this Project in compliance with Board of Supervisor's Policy, 3.5 - Notification to Board of Supervisors of Public Meetings to be Held in Their District (See Exhibit A), and Administrative Procedure 3.8 implementing Policy 3.5 (See Exhibit B). e. Official dedication or opening ceremonies. Town shall coordinate all official dedication or opening ceremonies for this Project with the County Supervisor in whose district this Project is located. f. Town point of contact. Town shall provide a unified point of contact to County for this Project. All communications to County shall be forwarded through Kate O'Rielly,Community Resources Director. g. Town ownership. After completion of construction,Town shall own 58% of the 15,000 square foot Project facilities, and the county shall own 42%. this is based on funds supplied by both entities and the value of the land at the time of construction. h. Compliance with County laws. Town agrees to comply with the provisions of Pima County Ordinance No. 1997-35, Section VIII, and Pima County Code Sec. 3.06.080, "Implementation of County Bond Projects in Other Jurisdictions". (See Exhibit C). i. Compliance with the County's MWBE Program. Town agrees to comply with the provisions of Pima County Ordinance No. 1997-44, Chapter 20.20, Professional Services Contracts and Chapter 20.24,Construction Contracts. (See Exhibit D). 4. County Obligations. a. Design assistance. County shall review and comment on all engineering studies, technical data and specifications provided by Town pursuant to this Agreement for the design and construction of the Project under a schedule mutually acceptable to County and Town to ensure timely progress and completion of improvements. b. County point of contact. Mike Tuinstra,Pima County Facilities Management Director shall provide a unified point of contact to Town for this Project. All 4 communications to Town shall be forwarded through the Town Manager or designee. c. County inspection and approval. County may jointly inspect the construction with PP the Town. Town shall allow County personnel reasonable access to the Project site before, during, and after construction, provided that County staff coordinate visits in advance with Town staff associated with the Project whenever possible. 5. Pygmy-Owl Survey County and Town agree that County shall take the lead in ensuring the Project is designed and constructed in compliance with the Endangered Species Act and County shall be the lead agency for all contacts with the United States Fish and Wildlife Service (Service) regarding the Project. County and Town further agree that design and construction of g Project shall proceed under the auspices of County's Sonoran Desert Conservation Plan and shall be permitted, if necessary,by the Service as part of County's Section 10 permit. Construction of the Project shall not commence prior to Service issuing to County a Section 10 permit,if necessary,consistent with the Endangered Species and construction shall comply with all conditions of this permit. It is estimated that construction would be completed in ten (10) months. 6. Town Operation and Maintenance. a. Operation and maintenance. Upon completion of the project,the operation and maintenance costs for the project shall be negotiated through a separate IGA between the Town of Oro Valley and the Tucson Pima Public Library District. b. Facility use by County residents. Town agrees to make the Project facilities and collection available to all residents of Pima County without restriction or preference to jurisdiction of residence. 7. Indemnification a. Mutual indemnity. To the fullest extent permitted by law, each party to this Agreement shall indemnify,defend and hold the other party,its governing board or body, officers, departments, employees and agents, harmless from and against any and all suits, actions, legal or administrative proceedings, claims, demands,liens, losses, fines or penalties, damages, liability,interest, attorney's, consultant's and accountant's fees or costs and expenses of whatsoever kind and nature, resulting from or arising out of any act or omission of the indemnifying party,its agents, employees or anyone acting under its direction or control,whether intentional, negligent, grossly negligent, or amounting to a breach of contract,in connection with or incident to the performance of this Agreement. b. Preexisting conditions. To the fullest extent permitted by law, each party to this Agreement shall indemnify,defend and hold the other party,its governing board or body, officers, departments, employees and agents, harmless from and against any claims and damages, as fully set out above in paragraph a., resulting from or arising 5 out of the existence of any substance,material or waste, regulated pursuant to federal, state, or local environmental laws, regulations, or ordinances,that is present on,in or below or originated from property owned or controlled by the indemnifying party prior to the execution of this Intergovernmental Agreement. c. Notice. Each party shall notify the other in writing within thirty (30) days of the receipt of any claim, demands, suits, or judgments against the receiving party for which the party intends to invoke the provisions of this Article. Each party shall keep the other party informed on a current basis of its defense of any claims, demands, suits, or judgments under this Article. d. Negligence of indemnifying party. The obligations under this Article shall not extend to the negligence of the indemnifying party,its agents, employees, or indemnitee. e. Survival of termination. This Article shall survive the termination, cancellation, or revocation,whether in whole or in part, of this Intergovernmental Agreement. 8. Insurance. When requested by the other party, each party shall provide proof to the other of their worker's compensation, automobile, accident, property damage, and liability coverage or program of self-insurance. 9. Right of Entry. Execution of this Agreement by Town grants to County the right to enter upon Town- owned lands to inspect the Project. County staff will coordinate site visits in advance with town staff. 10. Public Art. Public art budgeted at $19,995 for the Town's portion and$20,000 for the County's portion, shall be included in the Project. Public art shall be approved by both parties per County program standards (see Exhibit E). 11. Books and Records. Each party shall keep and maintain proper and complete books, records, and accounts, which shall be open for inspection and audit by duly authorized representatives of any other party at all reasonable times. All design and construction drawings, records, documentation and correspondence shall be the property of Town at the completion of the Project, except copies maintained by County for its records. 12. Town Accounting of Town Project Costs. Town shall account for all Project costs to be paid by the County pursuant to this Agreement. 6 13. County Inspection and Audit. County employees may perform any inspection of the Project or reasonable audit of any books or records of Town in order for the County to satisfy itself that the monies on the Project have been spent and the Project completed in accordance with this Agreement. County staff will request a joint staff inspection of the Project site along with any related records on an as-needed basis. 14. No Third Party Beneficiaries. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or affect the legal liability of either party to the Agreement by imposing any standard of care with respect to the maintenance of the Project different from the standard of care imposed by law. 15. Legal Jurisdiction. a. Nothing in this Intergovernmental Agreement shall be construed as either limiting or extending the legal jurisdiction of County or Town. b. It is not intended by this Intergovernmental Agreement to, and nothing contained in this Intergovernmental Agreement shall be construed to, create any partnership,joint venture or employment relationship between the parties or create any employer- employee relationship between the Town and any County employees, or between the County and any Town employees. Neither party shall be liable for any debts, accounts, obligations nor other liabilities whatsoever of the other, including (without limitation) the other party's obligation to withhold Social Security and income taxes for itself or any of its employees. 16. Compliance with Laws. The parties shall comply with all applicable federal, state, and local laws,rules, regulations, standards, and executive orders,without limitation to those designated by this Agreement. The laws and regulations of the State of Arizona shall govern the rights of the parties,the performance of this Agreement and any disputes hereunder. Any action relating to this Agreement shall be brought in an Arizona court. a. Anti-discrimination. The provisions of A.R.S. Sec. 41-1463 and Executive Order Number 99-4 issued by the Governor of the State of Arizona are incorporated by this reference as a part of this Intergovernmental Agreement. b. Americans with Disabilities Act. All Facilities shall be constructed and operated in compliance with the Americans with Disabilities Act,42 U.S.C., Sec. 1201, et seq. 17. Remedies. Either party may pursue any remedies provided by law for the breach of this Agreement. No right or remedy is intended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or in equity or by virtue of this Agreement. 18. Notification. All notices or demands Yupon any party to this Agreement shall be in writing,unless other forms are designated elsewhere, and shall be delivered in person or sent by mail addressed as follows: To Town: Mr.H. Brent Sinclair,Community Development Director Town of Oro Valley 11000 N. La Canada Drive Oro Valley,Arizona 85737-7015 To County: Kate O'Rielly,Community Resource Director Pima County Community Resources 130 W.Congress, 10th Floor Tucson,Arizona 85701 19. Construction of Agreement. a. Entire Agreement. This instrument constitutes the entire agreement between the parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superseded and merged herein' . b. Amendment. This agreement shall not be modified, amended, altered, or changed except by written agreement signed by both parties. c. Construction and interpretation. All provisions of this Agreement shall be construed to be consistent with the intention of the parties as expressed in the recitals hereof. d. Severability. In the event that any provision of this Agreement or the application thereof is declared invalid or void by statute or judicial decision, such action shall have no effect on other provisions and their application which can be given effect without the invalid or void provision or application, and to this extent the provisions of the Agreement are severable. In the event that any provision of this Agreement is declared invalid or void,the parties agree to meet promptly upon request of the other party in an attempt to reach an agreement on a substitute provision. e. Captions and headings. The headings used in this Agreement are for convenience only and are not intended to affect the meaning of any provision of this Agreement. 20. Waiver. Waiver by either party of any breach of any term, covenant, or condition herein contained shall not be deemed a waiver of any other term, covenant, or condition, or any subsequent breach of the same or any other term, covenant, or condition herein contained. 8 21. Force Majeure. Aper'shall not be in default under this Agreement if it does not fulfill any of its obligations under this Agreement because it is prevented or delayed in doing so by reason of uncontrollable forces. The term "uncontrollable forces," shall mean, for the purpose of this Agreement, any cause beyond the control of the party affected, including but not limited to failure of facilities, breakage or accident to machinery or transmission facilities, weather conditions, flood, earthquake, lightning, fire, epidemic,war,riot, civil disturbance, sabotage, strike, lockout, labor dispute, boycott,material or energy shortage, casualty loss, acts of God, or action or non-action by governmental bodies in approving or failing to act upon applications for approvals or permits which are not due to the negligence or willful action of thep arties, order of any government officer or court (excluding orders promulgated by the parties themselves), and declared local, state, or national emergency,which, by exercise of due diligence and foresight, such party could not reasonably have been expected to avoid. Either party rendered unable to fulfill any obligations by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch. 22. Term and Termination of Intergovernmental Agreement. a. Effective Date. This Agreement shall be effective upon recording with the Office of the Pima County Recorder. b. Term. Those portions of this Intergovernmental Agreement pertaining to the construction of the Project shall terminate upon completion and acceptance of the construction contract for Project by Town; however,the ownership, operation, maintenance, and liability provisions shall remain in effect until terminated or modified in writing by mutual agreement. c. Termination. 1. For cause. A party may terminate this Agreement for material breach of the Agreement by the other party. Prior to any termination under this paragraph,the party allegedly in default shall be given written notice by the other party of the nature of the alleged default. The party said to be in default shall have 45 days to cure the default. If the default is not cured within that time,the other party may terminate this Agreement. Any such termination shall not relieve either party from liabilities or costs already incurred under this Agreement. 2. At will. This Intergovernmental Agreement may be terminated by County or Town by giving 60 days written notice. Such termination shall not relieve either party from those liabilities or costs already incurred under this Intergovernmental Agreement. 3. A.R.S., Sec. 38-511. This Intergovernmental Agreement is subject to the provisions of A.R.S., Sec. 38-511. 4. Non-appropriation. It is acknowledged that all obligations of the County and Town hereunder to make payments to or to incur costs for the specified Project 9 shall be subject to annual appropriation by the respective governing bodies and to any limitation imposed by budget laws or other applicable state or local law or regulation, and are undertaken subject to and in accordance with such processes and constitutional limitations. Notwithstanding any other provision in this Intergovernmental Agreement,this Intergovernmental Agreement may be terminated if for any reason the Town Council or the Pima County Board of Supervisors does not appropriate sufficient monies for the purpose of maintaining the Intergovernmental Agreement. In the event of such cancellation,Town and County shall have no further obligation to the other party other than for payment for services rendered prior to cancellation. 5. Arbitrage. County may unilaterally terminate this Intergovernmental Agreement whenever the County determines violation of federal arbitrage regulations are likely to occur and may reallocate the Project funds to any project authorized by the bond improvement plan. 6. Legal authority. Neither party warrants to the other its legal authority to enter into this Agreement. If a court of competent jurisdiction, at the request of a third person, should declare that either party lacks authority to enter into this Agreement, or any part of it,then the Agreement, or parts of it affected by such order, shall be null and void, and no recovery may be had by either party against the other for lack of performance or otherwise. 7. Ownership of property upon termination. Any termination of this Agreement shall not relieve any party from liabilities or costs already incurred under this Agreement, nor affect any ownership of the Project construed pursuant to this Agreement. 10 In Witness Wherwf,County has caused this Intergovernmental Agreement to be executed by the Chairman of its Board of Supervisors,upon resolution of the Board and attested to by the Clerk of the Board, and the Town has caused this Intergovernmental Agreement to be executed by the Mayor,upon resolution of the Mayor and Council and attested to by its Clerk. TOWN OF ORO VALLEY PIMA COUNTY Mayor Chair,Board of Supervisors ATTEST: ATTEST: Clerk,Town of Oro Valley Clerk of the Board of Supervisors Intergovernmental Agreement Determination The foregoing Intergovernmental Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S., Sec. 11-952 by the undersigned,who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Intergovernmental Agreement represented by the undersigned. Town of Oro Valley Pima County Town Attorney Deputy County Attorney 1i EXHIBIT "A" COUNTY, AR!Z NA PIMA ���'"" , BOARD OF SUPERVISORS POLICY • low - 14z Io , Subject: Notification to Board of Supervisors of Public Policy Page Meetings to be Held in Their District Number C 3.5 1 Purpose The purpose of this Board of Supervisors policy is to ensure coordination of scheduling of public meetings with the Board member within whose district the public meeting will be held. Policy It is the policy of the Board of Supervisors that all Pima County department administrators, directors, and managers are responsible for providing advance notification to members of the Board of Supervisors of all County-related public meetings which are scheduled to be held within their districts. Furthermore, The Board directs the County Administrator promulgate administrative procedures implementing this Board policy. Effective Date:January 17, 1995 JAN i 7 1995 • EXHIBIT "B" ADM Y N STRAY i V E PROEDUR ProcedureC Nuer`• 3-5 qrn ay Effective Date: January 17. 1995 C‘ _0! County—Manager - SUBJECT: Notification to Board of Supervisors of Public Meetings to be Held in Their District DEPARTMENT RESPONSIBLE: Puo s e • The purpose of this administrative procedure is to establish the process for implementing the Board of Suo erviscrs policy making all Pine County department administrators, directors, and managers resoonsible to provide advance - of the 3oa d of Supervisors of all County-related public n o`l�_0 2 C:O n t o tite!';.r e.s meetings which are scheduled to be held within their districts. .d;nin s trat_ve Procedure • 1 . Rescor.sible _tr:v Ensuring compliance with the recuirements of prior notification shall be the b: , of department administrator, director, or manager whose responsibility the department or organization is scheduling or is otherwise involved in the public meeti nc. 2. Public Meetincs Defined A. The responsibility to provide prior notification to a member of the Board extends to all public meetings dealing with any issue of public policy, project, or program that fa"== under the jurisdiction of the Boar' of Supervisors, including, but not 1_.riited to the delivery of services, construction of public prof ec=s, and reculatory matters affecting public health, safety or welfare. • B. The respons''-' ' 'ty for providing prior notification extends to public meetings that are to :.e scheduled by other units of government in instances in to an intergovernmental agreement or otherwise which '_:;tz County .s party cooperates with or shares responsibility for the policy area, project or program with the other unit o f government. PAGE OF 2 06/30/99 11:41 x'520 740 8171 COUNTY ADMIN OFF 0003/003 ADMINISTRATIVE PROCEDURES - PROCEDURE NUMBER 3-8 PAGE 2 OF 2 C. In some instances, a public meeting will deal with a matter of public policy that is of relevance to residents of more than one supervisorial district but does not have general, community wide importance. In these instances, the __ or manager shall provide prior notification department administrator, director, - to all affected members of the Boart. D. The requirement of prior notification does not apply to pima County Boards, Commissions, and Cc-ittees or to public meetings whose scheduling is regulated by statute and often meeting recui:? etts. • 3 :iminc and Forn of Notificszic7. A. Whenever scheduling a public meeting is the sole and exclusive responsibility of a Pima County d;partreft or organitattonal unit, prior notification requires coordination cf the daze and timing of such public meetings with the schedule of the affected me ber of the Boarf before any other efforts are made to set a date, time or place for the public meeting. _n those instances when some other unit of government is responsible for scheduling a public meeting, the Pima County department administrator, director, or managershal l make every effort to insure the meeting does nor conflict with the scheduling o= the Board member, out shall , at a mLn mum, provide notification of the meeting as soon as it has been determined that a public meeting will be held. s B. Witten not_f;cation of the public meeting shall be provided to the f_� membershall identify the stated purpose cf the meeting, _ affected..ctFa 9oard and _ any regulatory rc r r affectin the calling and scheduling of the statutory or �,.qui_emen�s - g meeting, and a general time period during which the public meeting should ".7..e. scheduled. 1 EXHIBIT "C" c. Repair of abandoned buildings and conversion of same to a neighborhood public place for a variety of educational, health, or social service delivery. d. Construction and development of child care facilities within the neighborhood. e. Construction of neighborhood recreational facilities such as a basketball court, playground, or other similar facility. f. Street improvements such as paving, lighting and construction of traffic diverters or other improvements to create more livable streets. 3) Fundino Limitations - Recognng that the amount of total fundingis limited, projects within any neighborhood will be limited to a maximum of$150,000. All projects will require some form of matching resources, from financial participation to equity labor, to be provided by the specific neighborhood. 4) Project Evaluation - All projects submitted for funding each calendar year shall be evaluated by both technical staff of the County, as well as a public review committee made up of various citizens appointed by the Board. The public review committee shall hold meetings throughout the community to receive public concerns on eligible and neighborhood requested projects. 5) Project Selection - Annually the Board of Supervisors shall select neighborhood g d reinvestment projects from among those submitted. 6) Project Cveratin• and Maintenance Requirements - Appropriate assurances shall be received that neighborhood reinvestment projects will be maintained in good condition over _! �- - � ....' � .- _.. - 1 - • I - •nstructed facility or im•rovement. VIII. Implementation of County Bond Projects in Other Jurisdictions • Pursuant to Pima County Code Section 3.06.080, bond projects authorized bythe Board in the Bond d Improvement Plan for the May 20, 1997 Special Bond Election to be implemented by another political subdivision shall be funded by the County only pursuant to an intergovernmental agreement g reemen t executed between Pima County and the implementing subdivision. The intergovernmental agreement shall authorize the jurisdiction �to construct the project, subject to compliance with the terms and mutual responsibilities of the parties agreed upon in the intergovernmental agreement. The intergovernmental agreement shall include, but not be limited to, the following responsibilities P of the implementing subdivision: 1. That the implementing political subdivision shall operate and maintain the improvements constructed by County bond funds for a period of not less than twenty-five (25) years. 2. That the implementing political subdivision shall not charge a fee for use of the constructed improvement that is more than a fee charged by the County for a similar purpose. 109 r 3. the implementing political subdivision agrees to insure the improvements constructed That P 9 with County bond funds and will replace same if damaged or destroyed. 4. That the implementing political subdivision agrees to make the improvements available to P all residents of Pima County without restriction or preference to jurisdiction of residence. In addition, intergovernmental agreements shall: 5. establish the amount of County bond funds to be allocated to a specific project, establish the stated amount as a maximum of County bond monies to be allocated to the project, and commit the implementing political subdivision to pay for any and all costs in excess of County bond funds; . 6. contain a termination provision permitting the County to unilaterally terminate a bond improvement plan intergovernmental agreement whenever the County determines violations of federal arbitrage regulations are likely to occur and to reallocate said funds to any project authorized by the bond improvement plan; 7. require that the implementing subdivision agree to comply with all provisions of Chapter 3.06, Bonding Disclosure, Accountability, and Implementation, of the Pima County Code; 8. grant to the implementing jurisdiction the ability to manage all phases of project implementation, including design, contracting, and contract administration,subject to review and concurrence by the County. Nothing shall require the County to grant local implementation. It is contemplated that separate intergovernmental agreements will be executed for eachindividual project funded by County bond funds to be implemented by another political subdivision. II PASSED AND ADOPTED by the Board of Supervisors of Pima County,Arizona, this day of May, 1997. . 1 csnotx_i_ . - t 'r4.man, Board of sup-. o• Attest: Revie by. \ ' / • r it i/ Iii-4.• d do// Il Cleric, Boa a of upervisors County Administrator 5/ 9 ---. Approved as to Form: iii 7- -‘9/ 7. Civil Deputy County Attorney 110 Page 1 of 1 EXHIBIT "D" fTopl [Prey] LNextl [Bottom] Chapter 20.20 PROFESSIONAL SERVICES CONTRACTS Sections: 20.20.010 Professional Services Contracts. 20.20.010 Professional Services Contracts. Declaration of Specific Measures Adopted. A. MBE/WBE participation assigned weight in the evaluation criterion. In selecting architects and engineers and other professional services, not including the medical and legal fields, the county shall: 1. Develop a consistent method of evaluating and selecting professional services contractors across county departments; and 2. Award points (up to 10 out of 100) as part of the evaluation criterion for the participation of certified minority or woman-owned businesses,joint ventures of MWBE and non-MWBE firms, and/or affirmative action compliance; and 3. Make county guidelines available to firms in advance of submitting proposals. B. MBEs and WBEs for professional service outreach. In selecting architects and engineers for projects involving $50,000 or less, and in selecting other professional services (not including the architectural, engineering, medical, and legal fields) for projects involving $25,000 or less, the county shall request quotations from at least one certified MBE and one certified WBE, if available. C. Waiver. The award of points as part of professional service evaluation criterion is a narrowly tailored, flexible, and responsive measure, which allows for waiver upon recommendation of the procurement director to the county administrator for enforcement, when less restrictive, equally effective remedial measures are available and utilized. (Ord. 1997-44, 1997) .Procurement Home Page 0.Pima County Home Page Copyright © 1998, Pima County. All rights reserved. http://www.co.pima.az.us/procure/c20_20.htm 7/1/99 Page 1 of 3 [Top] fPrevj [Next] [Bottom] Chapter 20.24 CONSTRUCTION CONTRACTS Sections: 20.2=1.010 Declaration of specific measures adopted. 20.24.020 Compliance with individual project subcontracting goals. 20.24.030 Good faith efforts and waiver. 20.24.010 Declaration of specific measures adopted. Individual Project Subcontracting Goals. The procurement director shall review each eligible project for potential MBE subcontracting participation. Where there is sufficient availability of qualified and willing MBEs, the procurement director shall recommend individual project subcontracting goals to the county administrator for approval and enforcement. (Ord. 1997-44, 1997) 20.24.020 Compliance with individual project subcontracting goals. A. Procedure: 1. When the county has established subcontracting goals for a project, such goals will be published in the project specifications and the call for bids. 2. All bidders are required to submit a subcontractor equity packet with their bid packet. The subcontractor equity packet will contain either: a. The information necessary to show that the prime contractor will comply with the subcontracting goals, including a complete listing of MBE subcontractors to be used and the proposed MBE dollar percentage of each subcontract; or b. A request for waiver of the goals. 3. MBE prime contractors may not count their own participation towards fulfillment of the project's subcontracting goals. B. Subcontractor Equity Packets. Each bidder shall submit a subcontractor equity packet which includes the names, addresses, and contact persons of the MBEs to be used on the project; the type of work or services to be performed; the value of the commercially useful function to be performed by the MBE; the percentage of the value of the commercially useful function to be performed by the MBE as compared to the total contract amount; a verified statement from the bidder that the dollar amount of work to be performed by named MBEs was furnished to the bidder prior to bid opening; documentation reflecting the bidder's affirmative action and equal employment practices; and other relevant information as required. Project goals may be met in the following ways, unless otherwise specified: 1. The bidder may use a certified MBE or MBEs as subcontractors, and the value of the commercially useful function to be performed by http://www.co.pima.az.us/procure/c20_24.htm 7/1/99 Page 2 of 3 such MBE(s) shall count toward satisfaction of the applicable goal. The named MBE subcontractor(s) may enter into second tier subcontractors, consistent with industry practices; however, if the names MBE subcontracts work to a non-MBE in proportions outside standard industry practice, the MBE shall be presumed not to be performing a commercially useful function; or 2. The bidder may contract with a certified MBE supplier(s) and obtain credit towards participation goals as follows: a. If the MBE supplier manufactures the goods supplied, then the total dollar amount of the subcontract is credited towards the established MBE goal; or b. If the MBE supplier is a wholesaler warehousing the goods supplied, or is a manufacturer's representative, then the total contract amount is credited towards the established MBE goal; however, only 25 percent of the project MBE goal may be met in this manner; or 3. The bidder may engage in a joint venture to satisfy the established MBE goal. The degree of MBE participation credited towards the goal will be determined according to a consistent methodology developed by the procurement director. (Ord. 1997-44, 1997) 20.24.030 Good faith efforts and waiver. A. Individual Waiver of Project Subcontracting Goals. If a bidder has not met the established individual project subcontracting goals, such goals may be waived by the county administrator upon recommendation of the procurement director, if there is a timely request for waiver and sufficient demonstration that good faith efforts were made to meet the goal. The kinds of efforts, as well as the quantity and intensity of effort to meet established goals, will be considered. The statement of good faith efforts submitted with the subcontracting equity packet may contain any information the bidder deems relevant and shall include each of the following: 1. Verification of advertisements soliciting bids from MBEs for three consecutive days in an approved publication or copies of written notifications sent to all MBEs currently certified with the county within identified subcontracting categories, that interest in the subcontract is solicited. Such advertisements or notices must expressly describe a given project and state that MBE participation is sought; incidental reference to the project or listing of the bidder as a plan holder is not sufficient. Such advertisements or notices shall be published or sent so that there is adequate time to respond prior to bid opening. 2. Verification that the procurement department was contacted in order to obtain assistance in identifying available qualified MBEs. 3. Verification of efforts to subcontract, consistent with industry practice, with MBEs that the bidder has contacted or who have contacted the bidder, including the names, addresses, and telephone numbers of all MBEs contacted and date of contact; a description of efforts made to subcontract; a description of the information provided to the MBEs regarding plans and specifications, and if attempts to subcontract actually occurred, the dates and places of such process and a description of the outcome. 4. Verification that the bidder gave MBEs necessary access to and adequate time to review all necessary plans, drawings, specifications, and other documents, as well as adequate time to prepare subcontract bids and/or negotiate joint venture agreements. 5. Verification that, reasonably consistent with industry practice or the bidder's past practices on http://www.co.pima.az.us/procure/c20_24.htm 7/1/99 Page 3 of 3 similar projects, the bidder made efforts to attract MBEs in order to achieve the project goals, including consideration of dividing the work into economically feasible units. 6. A statement describing the reasons why the bidder and MBE did not succeed in reaching a subcontracting or joint venture agreement for each MBE which contacted the bidder or which the bidder contacted. 7. Verification that the bidder rejected available MBEs because they submitted bids which were unreasonably high, or they were not qualified. Such verification shall include a statement of the amounts of all bids received from potential subcontractors and all relevant dates. B. General Waiver or Reduction of Project Goal. The county administrator, upon recommendation of the procurement director, may waive or reduce the established project goal where it is determined that MBE availability is less than projected upon establishing the goal. In such circumstances, the county administrator shall certify that MBEs are in fact not available to provide the needed labor and materials at competitive prices. (Ord. 1997-44, 1997) ,.Procurement Home Page 00.Pima County Home Page Copyright O 1998, Pima County. All rights reserved. http://www.co.pima.az.us/procure/c20_24.htm 7/1/99 EXHIBIT "E" PIMACOUNTY, ARIZONA ' BOARDOFSUPERVISORS POLICY '4/1010" Subject: Policy Page Pima County Public Art Program Number C 3. 3 IL of 3 Purpose The purpose of this document is to describe Pima County's Art Program. • Policy Pima County Departments shall appropriate up to one percent (1%) of the construction cost of projects with budgets greater than $100 ,000 . 00 for public art. For administrative responsibilities described herein, the Tucson Pima Arts Council (TPAC) shall be compensated for administrative costs not to exceed ten percent (10%) of the public art funds for each project. The eligible projects may be transportation and flood control projects, parks and recreation projects, wastewater treatment facilities, and public buildings. In order to ensure that art is an integral part of Pima County projects, the artist will be part of the project design team. This approach will help ensure that opportunities for integrating art into the design of the project are considered at the earliest stage of the design process. Program Responsibilities Pima County Board of Supervisors The Board of Supervisors will review the amount spent on art projects when the Capital Improvements budgets are reviewed. The art projects shall be itemized for each project, and expenditures authorized upon the adoption of the CIP. The Board of Supervisors will continue to have one voting member of the Tucson Pima Arts Council. Each Board member will designate one voting member to the Public Art Committee of the Tucson Pima Arts Council . Pima County Departments The Departments participating in the Public Art Program shall be responsible for coordinating with the Tucson Pima Arts Council (TPAC) on the implementation of art projects, and management of consulting teams that include artists. Subject: Policy Page Number Pima County Public Art Program 3 . 3 2 of 3 Maintenance and repair of art projects shall be the responsibility of the Department funding the project. TPAC may be called on for recommendations for any repairs. County Manager The County Manager, with input from Risk Management concerning issues of public safety, shall implement the artwork chosen by the selection jury. The County Manager will designate one voting member of the Public Art Committee of TPAC. Art Selection Process Artists and artworks shall be selected by means of open entry competitions. TPAC shall coordinate requests for proposals from artists, and actively encourage young and emerging local artists to compete for art projects. A new jury shall be assembled by the Public Art Committee for the selection of the artist and/or artwork for each project. TPAC shall develop jury selection guidelines for approval by the County Manager for use on all Pima County projects. Juries should include a representative of the consultant for the project, since a good working relationship between the consultant and the artist is important for project success. Selection Process The Public Art Coordinator shall be responsible for convening juries and administering the selection process. The jury's selection shall be reported to the Public Art Committee, and, if approved, shall be recommended to the Board of Directors of TPAC for formal vote. TPAC shall forward a recommendation to the County Manager for implementation. Sublect: Policy Page Number Pima County Public Art Program C 3 . 3 3 of 1 Responsible Department 1 . The Board of Supervisors 2 . The County Manager 3 . Participating Department Heads 4 . Risk Manager Sunset Provision This policy will be reviewed for continuance by 12-31-97. FEB 1 QA. Effective Date: 11/27/90 11-dj C)) d �l 40 7 40.5 C.,((-CA Amended Language for Section 5 of IGA with Pima County for Library: The parties mutually agree that the site for the library is in close proximity to an area designated by the U.S. Fish and Wildlife Service (Service) as critical habitat for the Cactus Ferruginous Pygmy-Owl. Because of this proximity, the parties agree that consultation with the Service on this project and its potential to adversely impacting critical habitat is imperative. The parties agree that County shall initiate this consultation, with the full participation of Town. The parties also agree to abide by decisions of the Service regarding factors such as the need, timing and number of pygmy-owl surveys or whether design and construction of the project should proceed under the auspices of the County's Sonoran Desert Conservation Plan. ' 10 TOWN OF ORO VALLEY .---,,, COUNCIL COMMUNICATION MEETING DATE: July 21, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Chuck Sweet, Town Manager SUBJECT: Approval of the Request for Proposal for Architectural and Engineering Services for the Oro Valley Public Library BACKGROUND: Over the course of the last year, the Town of Oro Valley has been working with Pima County to explore the possibility of locating a public library on the 7-acre site situated immediately north of Town Hall. Staff has been working closely with the Library Technical Advisory Committee (LTAC), Pima County and the Tucson Pima Public Library District discussing issues regarding community needs, facility planning and integration with the Town Hall campus. Based on these discussions the LTAC has drafted a Request for Proposal for Architectural and Engineering Services. Since the Town will be receiving funds from Pima County for the construction of this Library, staff has also been working closely with Pima County to formulate an RFP that will not only meet the Town's needs, but one that will be acceptable to the County and meet their requirements and standards as well. SUMMARY: Originally, it was the intent of the LTAC to prepare an RFP that would include a scope of work for architectural programming, preliminary testing, and a schematic design. It was not to include construction drawings or construction administration. The thought of the committee was that the Town would get enough information to present the schematic design and model to the Council and come back later with an RFP that would cover the construction drawings and administration. After reviewing the original RFP, the LTAC discussed the reasoning behind this approach and felt it would better serve the Town to go through the RFP process once. Therefore, the attached RFP will take the project from the initial design stages, completely through the construction phase. The RFP has been patterned after the approved format used by Pima County. Several meetings have been held with Kate O'Rielly, Pima County Community Resources, and Mike Tuinstra, Pima County Facilities Management for their review. Their comments have been incorporated into the attached document. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 RECOiVMENDATION: Based on meetings with LTAC and County officials, staff is satisfied that the RFP meets all the requirements of both the Town and County. If all of the terms and conditions listed in the RFP meet with the Councils approval, it is staffs recommendation that it be approved at this time, contingent upon the Board of Supervisors' approval of the IGA for Bond proceeds on August 3. It should be noted, however; that the RFP does not, at this time, specify the date for the pre-proposal meeting or the proposal due date. Once the IGA has received final approval, and the Town is certain when and if the Bond proceeds will be allocated, the milestone chart attached to the RFP can be modified and the dates filled in at that time. After the proposals have been received from interested, qualified firms, the LTAC will forward their recommendation to the Council for final approval. SUGGESTED MOTION: I MOVE to APPROVE the Request for Proposal for Architectural and Engineering Services, contingent - upon the Pima County Board of Supervisors' approval of the IGA for Bond proceeds at their August 3", 1999 meeting, and authorizing the Town Manager to schedule appropriate advertisement dates after Board of Supervisor approval of the IGA. ATTACHMENTS: 1. Proposed Request for Proposal for Architectural and Engineering Services ii/ ' ; . . 4 Town Manager F:1 IND I V ID 1 L I T\L IB RAR Y\RFP.T C C • REQUEST FOR PROPOSAL FOR ARCHITECTURAL AND ENGIiVEERING SERVICES ORO VALLEY PUBLIC LIBRARY 11000 N. LA CANADA DRIVE ORO VALLEY, ARIZONA 85737 FOR TOWN OF ORO VALLEY COMMUNITY DEVELOPMENT DEPARTMENT ORO VALLEY, ARIZONA Town of Oro Valley Community Development Department 11000 N. La Canada Drive Oro Valley,Arizona 85737 Telephone: 520.797.9797 Facsimile: 520.742.1022 Oro Valley Public Library Request for Proposal TABLE OF CONTENTS I. PROJECT DESCRIPTION A. General Information B. Project Scope C. Project Budget D. Project Schedule E. Contract and Services II. CONSULTANT SELECTION A. Pre-Proposal Meeting B. Proposal Due Date C. Selection Process D. Proposal Submittal Information and Evaluation Criteria E. Cost of Proposal F. Waiver of Claims M. SAMPLE PROFESSIONAL SERVICES CONTRACT APPENDIX A: Scope of Services APPENDIX B: Consultant Fee Schedule APPENDIX C: Oro Valley GIS/CAD Standards • IV. ATTACHIVLENTS ATTACHMENT 1 M\XTBE Utilization Form ATTA 2: Existing Site Plan ATTACHMENT 3: Preliminary-Schedule Y --} Oro Valley Public Library Request for Proposal PROJECT DESCRIPTION A. GENERAL INFORMATION The intent of this Request for Proposal (RFP) is to solicit proposals from architectural and engineering firms to provide professional services for a new library building in Oro Valley. The "Scope of Professional Services" (Appendix A) will define the project and the extent to which the consultant will be providing services for this project. B. PROJECT SCOPE In brief, the scope of the project consists of the progr g and site study, schematic design, design development, soils testing, construction documents, construction administration, and a cost estimate for a 15,000 square foot library facility. The building is to be located on a +7 acre parcel located immediately north of the existing Oro Valley Town Hall campus. The library, partially funded through Pima County bond proceeds, is intended to serve patrons from the Town of Oro Valley, incorporated and unincorporated areas of Pima County. This project is envisioned as Phase I of a two-phase library project that will later include the design and construction of 10,000 square feet of community meeting rooms and additional stack space. Phase II of the project is currently unfunded and no time frame has been set for the commencement of the second phase. C. PROJECT BUDGET The proposed budget for Phase I is $3,995,000, which would include all costs for construction administration, professional fees, soils testing, necessary permits, administration, furnishings, equipment, library collection, costs to occupy the project and project contingency. At the present time, $2,000,000 is available in proceeds from Pima County bonds. The Town of Oro Valley has budgeted the additional$1,995,000 in monies to fully fund this project. D. PROJECT SCHEDULE Short-listed firms shall submit a schedule of work, including time frames for prog . g, schematic design, design development, cost estimate, and preparation of construction documents,with their submittal at the time of interview. Refer to Attachment 3 Preliminary Schedule,which indicates the time frame in which the Town of Oro Valley intends to accomplish this work. E. CONTRACT AND SERVICES Refer to Section III, which contains the Sample Professional Services Contract (PSC) which the selected firm will enter with the Town of Oro Valley. Appendix 'A' to the sample PSC describes the services required of the consultant during the course of this project. II. CONSULTANT SELECTION A. PRE-PROPOSAL MEETING All interested firms are invited to a Pre-Proposal Meeting to be held on , 1999. The meeting will be held at 10:00 a.m.,Mountain Standard Time in the Town Council Chambers, Oro Valley Town Hall, 11000 N. La Canada Drive, Oro Valley,Arizona. Questions may be faxed or mailed to the Community Development Department and must be received seven (7) days in advance of the RFP due date. Responses,which materially change the scope or intent of this RFP,will be issued via addendum to all RFP recipients. Questions may be directed to Mr.H. Brent Sinclair, Community Development Director,Town of Oro Valley, 11000 N. La Canada Drive, Oro Valley,Arizona 85737, Phone 520.797.9797, Facsimile 520.742.1022. A pre-proposal tour of the site shall be held immediately following the pre-proposal meeting. B. PROPOSAL DUE DATE Prospective consultants shall submit 7 copies of their proposal in sealed envelopes, clearly marked with the name of the RFP, due date and time, addressed to: Ms. Kathi Cuvelier, Town Clerk,Town of Oro Valley, 11000 N. La Canada Drive, Oro Valley, Arizona 85737. Proposals shall be delivered or received in the Town Clerk's office no later than , 1999 at 2:30 p.m. Mountain Standard Time. No proposals will be accepted after this time. Pursuant to the provisions of Arizona Revised Statutes, all information submitted in proposals shall be deemed to be public information and shall be made available to the public in accordance with the policies of the Town of Oro Valley, except trade secrets or other proprietary data which shall remain confidential to the extent the offerer designates and the Community Development Director concurs r.Fi?m-Js:.il 4 C. SELECTION PROCESS 1. The Oro Valley Town Council will appoint a seven (7) member-"Consultant Selection Committee" comprised of members from the Oro Valley Community Development Department, Pima County Facilities Management Department, the Tucson Pima Public Library (IPPL), the Library Technical Advisory Committee,Amphitheater School District, an Oro Valley citizen, and a liaison from the Oro Valley Town Council. This committee will review initial proposals, determine a short list of firms, conduct interviews of short- listed firms, and make a recommendation for award of contract to the Oro Valley Town Council. Final selection of Consultant shall be made by the Oro Valley Town Council_ 2. Final selection of consultants shall be at the discretion of the Town of Oro Valley,under the guidelines of Pima County procurement practices, and the Town reserves the right to reject any or all proposals. 3. Following selection by the Town Council,the Town will enter into fee negotiations with the firm. If agreement cannot be reached with the recommended firm, the Town will enter into negotiation with the firms) ranked next lower in scoring or reject all proposals. Compensation for professional services will be commensurate with the provisions of the Arizona Revised Statutes. D. PROPOSAL SUBMITTAL INFORMATION AND EVALUATION CRITERIA Proposal submittal booklets should be bound on the left side and have back covers. The submittal pages shall not exceed 81 x 11 inches. Each section should be indexed, i.e. Cover Letter, Firm's Capabilities, etc. All pages shall be printed on one side only. For typewritten pages, the minimum font size is 10, and black ink is preferred. Proposals should be kept concise, and shall not be more than thirty-five (35) pages plus front and back covers. 1. INTRODUCTORY LETTER The introductory letter should be approximately one (1) page (81 x 11). The letter shall be on company letterhead including the company name, address, and phone number. The letter should be addressed to: Town of Oro Valley, ATTN: Community Development Department, 11,000 N. La Canada Drive, Oro Valley,AZ 85737. The letter shall be signed by an authorized person, and should contain the following: An expression of the firm's interest in being selected for the contract work. A statement confirming the commitment of the key personnel and subconsultants identified in the submittal to the extent necessary to meet the Town of Oro Valley's quality and schedule expectations. 5 A summary of key points regarding the firm's qualifications. A statement regarding agreement to the terms set forth in the Sample Contract. 2. QUALIFICATIONS The following criteria will be used for selection of a consultant firm for this project. Points indicate the relative weight carried by each,with a total maximum of 100 points. The proposal shall include brief narratives describing the firm's qualifications as they relate to the criteria. Proposals shall address the following six (6) criteria and should be kept concise to simplify review. Short-listed firms will be asked to elaborate on some or all of the following items during the interview. a. Firm's Capabilities ■ Demonstrated capability on similar/related project(s). Provide information about projects including size, construction costs, when constructed and services provided. Provide reference name, address, and phone number. ■ Management and organization proposed for this project. ■ Capability of firm to accomplish the project with other on going projects and priorities, and the capability to complete this project within the set forth deadline. ■ Quality, cost control, value eerie , and life cycle cost analysis engin' g methods/experience. z Prime consultant's office proximity to the site. ■ Insurability compliance per sample Professional Services Contract, Section III. ■ GIS/CAD capabilities - produce drawn documents that are compatible with the Town of Oro valley's GIS/CAD standards. See Appendix C ■ Demonstrate capability to work with Town staff, Advisorv.Boards, governmental units, and other professionals involved. ■ Demonstrate the firm's fiscal soundness to ensure they can see the project through to completion. Maximum Ports: 30 b. Project Team ■ Qualifications and relevant individual experience. Submit resumes of key personnel who will be assigned to the project, including name, proposed � � project assignments, firm for whom currently employed, length of employment with firm, education,license or registration, unique qualifications for this project, and previous related experience. ■ Licensure of firm and sub-consultant members as required per State statute. Submit registration numbers from Principals. ■ Unique qualifications of key members of the project. 6 ■ Time commitment of key team members. ■ Extent of Principal involvement. Maximum Points: 30 c. Project Understanding ■ Demonstrated knowledge of the work required. ■ Exhibit complete, comprehensible understanding of the function, relationship, size, and significance of the various spaces within the proposed project. Maximum Points: 12 d. Project Approach ■ Logical course(s) of action to meet stated goal(s) and to accomplish the work. ■ Understanding of impacts, impediments, and conflicts. ■ Innovative approaches. Maximum Points: 10 e. Schedule ■ Past history for project completion on schedule. - -- ■ Internal measures proposed for timely completion. ■ Person responsible for schedule. Maximum Points: 10 f. Minority and Woman-Owned Business Enterprise (MWBE)/Afflrmative Action Plan ■ Present Affirmative Action Plan ■ Percentage of MAXTBE Utilization.Attach MWBE Utilization Form as part of your submittal. See Attachment 1. Maximum Points: 8 E. COST OF PROPOSAL This solicitation does not commit the Town of Oro Valley to pay any costs incurred in the preparation, presentation, or return of submittals including interview time. The Town of Oro Valley is not required to select any consultant who responds. F. WAIVER OF CLAIMS Each proposer,in submitting a proposal is deemed to have waived any claims for damage by reason of the selection of another proposal and/or the rejection of the proposal. 7 SECTION III. SAMPLE PROFESSIONAL SERVICES CONTRACT SAMPLE PROFESSIONAL SERVICES CO CI' for AM-LITECTURAVENGENTERENG SERVICES between THE TOWN OF ORO VALLEY,ARIZONA and [Firm Name] This contract was approved by the Oro ValleyTown on Councilthe day of , 1999, shall.be . between the TOWN OF ORO VALLEY, ARIZONA,a body politic and incorporated municipality of the State of Arizonaereinafter called "TOWN") and[FIRM NAME], licensed to practice in the State of Arizona, (hereinafter called "CONSULTANT.") Whereas,TOWN intends to have the Consultant design the Oro Valley Public library, located at 11000 N. La Canada Drive, Oro Valley,_Arizona, hereinafter called the "PROJECT." That for consideration hereinafter named,TOWN and CONSULTANT agree as follows: ARTICLE I: SCOPE OF SERVICES CONSULTANT agrees to provide Professional Services for the TOWN as described in APPENDIX A, an attachment to this Contract. Furthermore,when applicable, such work shall comply with APPENDLX C, an attachment to this Contract, the GIS/CAD standards for the Town of Oro Valley. ARTICLE II: COMPENSATION AND PAYMENT The total of all payments to CONSULTANT, including sub-consultants, under this Contract shall not exceed $ (spell out dollar amount). This not to exceed fee shall include all professional architectural and engineering services. CONSULTANT'S fees and method of compensation shall be in accordance with provisions described in APPENDIX B, an attachment to this Contract. Payment under this Article shall not prevent the TOWN from objecting to charges after payment in appropriate cases, or from seeking reimbursement for any such charges. The TOWN shall have thirty days from receipt of a request for payment to protest or pay the charges. ARTICLE III: SUCCESSOR AND ASSIGNS All the terms, conditions, and provisions shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns; provided, however, that no assignment of this Contract shall be made without written approval of the TOWN. This Contract shall be void if assigned without TOWN consent; and TOWN may withhold and refuse to consent to any assignment. 8 ARTICLE IV: CONTRACT EXPIRATION -'aw+•.3-W it This contract shall commence as of the above noted date and shall terminate on 2001, unless otherwise terminated or extended as provided in this Contract. ARTICLE V: CO L'1'EXTENSION This Contract shall not be construed as being subject to automatic renewal. Any modification or time extension shall be by formal written amendment to this Contract and executed by the parties hereto. ARTICLE VI: OWNERSHIP OF DOCUMENTS All original drawings, boring logs, field data, estimates, field notes, plan specifications, documents, reports, calculations, maps and models, and other information developed by CONSULTANT under this contract shall vest in and become the property of the TOWN and shall be delivered to the TOWN upon completion or termination of the services, but CONSULTANT may retain and use copies thereof. The TOWN agrees that the material will not be used for any project other than the project for which it was designed or without the expressed permission of the CONSULTANT. ARTICLE VII: LIABILITY AND INDEMNIFICATION CONSULTANT shall perform the services hereunder in accordance with generally accepted professional methods and standards. To the fullest extent permitted by law,the CONSULTANT ~~- = shall indemnify, defend, and hold harmless TOWN, its officers, departments, employees, and agents from and against any and all suits, actions, legal or administrative proceedings, claims, demands or damages of any kind or nature, including reasonable attorney's fees and costs incurred by TOWN in defending any claim or action, arising out of this Contract which are attributed to any negligent act or omission of the CONSULTANT and its agents, employees, or any one acting under its direction, control, or on its behalf. The obligations under this Article shall not extend to the negligence of the TOWN, its agents, employees, or indemnities. ARTICLE VIII: CONSULTANT'S LIABILITY INS CE The CONSULTANT shall purchase and maintain such insurance as will protect it and the TOWN from claims set forth below which may arise out of or result from the CONSULTANT'S operations under the Contract,whether such operations be by itself or by any subcontractor or by anyone directly or indirectly employed by any of them or by anyone else for whose acts any of them may be liable. Evidence of Insurance is required as follows: Commercial General Liability in amount of $1,000,000 combined, single limit Bodily Injury and Property Damage or$1,000,000 Body Injury, $1,000,000 Property Damage. Coverage must include: Premises/Operations, Independent Contractors, Products/Completed Operations, and Contractual Liability. Automobile liability coverage for owned, non-owned, and hired vehicles must be provided with limits in the amount of $1,000,000 combined single limit, or$1,000,000 bodily injury, $100,000 property damage. TOWN is to be named as an additional insured for all operations performed within the scope of the contract between TOWN and CONSULTANT.' Evidence of Professional Liability Insurance in the amount of$500,000 per occurrence, $1,000,000 annual aggregate must be provided. CONSULTANT must also provide evidence of statutory Arizona Workman's Compensation Coverage. All certificates of 9 Insurance must provide for guaranteed thirty (30) day notice of cancellation, non-renewal, or material change. Any modifying language in the Insurance Certificate must be deleted. ARTICLE IX:NON-APPROPRIATION OF FUNDS Notwithstanding any other provision of this Contract,this Contract may be terminated if for any reason the Oro Valley Town Council does not appropriate sufficient monies for the stated purpose of maintaining this Contract. TOWN shall have no further obligation to CONSULTANT, other than for services rendered prior to termination. ARTICLE X: DELAYS Neither party hereto shall be considered in default in the performance of its obligations hereunder to the extent that the performance of any such obligation is prevented or delayed by any cause, existing or future,which is beyond the reasonable control of such party. ARTICLE XI:CHANGES The TOWN may, from time to time, require changes in the scope of the services of the CONSULTANT to be performed hereunder. Such changes, including any increase or decrease in the amount of CONSULTANT compensation,which are mutually agreed upon by and between the TOWN and CONSULTANT shall be incorporated in written amendments to this Contract and signed by both parties. ARTICLE XII: 'TERMINATION OF CONTRACT FOR CAUSE If, through any cause, CONSULTANT shall fail to fulfill in timely and proper manner its obligations under this Contract, or if CONSULTANT shall violate any of the covenants, contracts, or stipulations of this Contract,the TOWN shall thereupon have the right to terminate this Contract by giving written notice to CONSULTANT of such termination and specifying the effective date thereof, at least ten (10) days before the effective date of such termination. In that event, all finished or unfinished documents data, studies, surveys, drawings, maps, models, photographs, and reports prepared by CONSULTANT shall, at the option of the TOWN, become its property and CONSULTANT shall be paid an amount based on time and expenses incurred by CONSULTANT prior to the termination date, however, no payment shall be allowed for anticipated profit on unperformed services. Notwithstanding the above, CONSULTANT shall not be relieved of liability to the TOWN for damages sustained by the TOWN by virtue of any breach of the Contract by CONSULTANT and the TOWN may withhold payments to CONSULTANT for the purpose of set-off until such time as the exact amount of damage due the TOWN from CONSULTANT is determined. ARTICLE XIII:TERMINATION FOR CONVENIENCE OF TOWN TOWN may terminate this Contract at any time by giving written notice to CONSULTANT of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. In that event, all finished or unfinished documents and other ,.�._ materials shall, at the option of the TOWN, become its property. If the Contract is terminated by the TOWN asprovided herein CONSULTANT shall be paid an amount based on the time and ` -� � 10 expenses incurred by CONSULTANT prior to the termination date, however, no payment shall be allowed for profit anticipated on unperformed services. ARTICLE XIV:NON-DISCRIMINATION CONSULTANT shall not discriminate against any TOWN employee, client, or any other individual in anywaybecause of thatperson's age, race, creed, color, religion, sex, disability, or national origin, g in the course of carrying out CONSULTANT duties pursuant to this Contract. CONSULTANT shall comply with the provisions of Executive Order 75-5,which is incorporated into this Contract by reference, as if set forth in full herein. All subcontractors associated with this Contract shall adhere to the same standards as set forth in this Article. ARTICLE XV:CONTNUATION OF SERVICES CONSULTANT shall continue to render all services requested in the Contract without interruption, notwithstanding any disputes concerning the interpretation of this Contract, all disputes to be adjusted at a later time, if appropriate. ARTICLE XVI: OTHER DOCUMENTS CONSULTANT and TOWN, in entering into this Contract have relied upon information in the Oro ValleyLibrary Request for Proposals, date , 1999, and on information provided by q P the CONSULTANT in response to said documents. These documents are hereby incorporated into and made part of this Contract as if set forth in full herein. ARTICLE XVII: IND EP END ENT CONTRACTOR STATUS The status of the CONSULTANT shall be that of an independent contractor and CONSULTANT shall not be considered an employee of the TOWN and shall not be entitled to receive any fringe benefits associated with any regular employment and will not be subject to the provisions of the TOWN Merit System. CONSULTANT shall be responsible for the payment of all federal, state, and local taxes associated with compensation received, pursuant to this Contract and shall indemnify and hold the TOWN harmless from any and all which TOWN incur because of / liabilitymay CONSULTANT'S failure to pay such taxes. CONSULTANT shall be responsible for program development and operation under the witheut supervision of the TOWN. CONSULTANT will be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, and subcontractors during the performance of this Contract. ARTICLE XVIII: CONFLICT OF INTEREST This Contract is subject to the provisions of A. .S. Section 38-511 which provides in pertinent part: "The state, its political subdivisions or any department, of either may,within three years after its execution, cancel any Contract,without penalty or further obligation,made by the state, its political subdivisions, or any of the departments or agencies of either if any person significantly involved in initiating, negotiating, securing, drafting, or creating the Contract on behalf of the state, its political subdivisions or any of the departments or agencies of either is, at any time while the Contract or any extension of the Contract is in effect, an employee or agent of any other party to the Contract in any capacity or a Consultant to any otherparty to the Contract with respect to the subject matter of the P Contract." 11 ARTICLE XIX: COMPLIANCE WITH LAWS The laws of the State of Arizona shall govern this Contract. Any action related to this Contract shall be brought in an Arizona court. In designing the Project and preparing the plans, drawings, and specifications,the CONSULTANT shall comply with all the requirements of Tide 41, Chapter 9,Article 8, relating to building structures. CONSULTANT shall become and remain . informed of all applicable federal, state, and local laws, ordinances, rules and regulations, and the orders and decrees of bodies or tribunals having any jurisdiction or authority over this Project,which may significantly affect completion of the project. The CONSULTANT shall observe and comply with all such laws,ordinances, rules, regulations, orders, and decrees. In addition, the Project shall be designed to comply with and meet all governing codes, and amendments thereof, as currently adopted by the TOWN,including the most recent versions of applicable construction codes for this project as listed below. Compliance with these codes is required, and deviations shall be called to the attention of the TOWN. Uniform Building Codes - As published by the International Conference of Building Officials, 50 South Robles, Pasadena, California 91101, and Town of Oro Valley Amendments. Life Safety Code- Standard No. 1; published by the National Fire Protection Association, 60 Batterymarch Street, Boston,Massachusetts 02110. Uniform Mechanical Code - published by the International Association of Plumbing and Mechanical Officials, 5032 Alhambra Avenue, Los Angeles,California 90032, and Town of Oro Valley Amendments. Uniform Plumbing Code - published by the International Association of Plumbing and Mechanical Officials, 5032 Alhambra Avenue, Los Angeles,California 90032, and Town of Oro Valley Amendments. National Electrical Code - Standards No. 70 and 76A, published by the national Fire Protection Association. National Fire Codes - Volumes 1 through 16, except for standards contained therein which are separately adopted elsewhere in this Regulation in a different edition; published by the National Fire Protection Association, 60 Battervmarch Street, Boston,Massachusetts 02110, and Town of Oro Valley Amendments. Fire Protection Standard- by Arizona State Fire Marshall (requires a Class A Fire Alarm System), Oro Valley Building Safety Division,Town's Insurance Carrier,Rural/Metro Fire Department. Drawings shall be submitted to the above agencies at completion of preliminary design, design development, and construction documents, for review and approval. ARTICLE XX:A.MERICANS WITH DISABILITIES ACT (ADA) CONSULTANT shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. 12 �.. ARTICE XXI:NON-WAIVER The failure of eitherarty to insist in any one or more instances upon the full and complete P . compliance with any of the terms and provisions of this Contract, or to take any action permitted as a result thereof, shall not be construed as a waiver or relinquishment of the right to insist upon full and completeperformance of the same, or any other covenant or condition, either in the past or in P . the future. The acceptance by either party of sums less than may be due and owing it at any time shall not be construed as an accord and satisfaction. ARTICLE XXII:NON-EXCLUSIVE CONTRACT CONSULTANT understands that this Contract is non-exclusive and is for the sole convenience of the TOWN. The TOWN reserves the right to obtain like services from other sources for any reason. ARTICLE XIII: ARBITRATION All claims, disputes, counterclaims, and other matters in question,under $50,000, arising out of or relating to this Contract which the TOWN and CONSULTANT are unable to resolve shall be decided by arbitration. The American Arbitration Association is hereby designated as the arbitrator, and arbitration shallP roceed in accordance with the Construction Industry's Arbitration Rules of the American Arbitration Association. All arbitration hearings will be held in Oro Valley,Arizona or the metropolitan Tucson area. Arbitration shall be limited to claims with a maximum of$50,000. Arbitrator shall not have jurisdiction to consider or find any claim or matter in controversy or render a monetary award against any party in excess of$50,000, exclusive of interest and costs. CONSULTANT shall continue to render all services required by this Contract,without interruption, notwithstanding these provisions. ARTICLE XXIV: REMEDIES Either party may pursue any remedies provided by law for the breach of this Contract. No right or remedy is in• tended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or at equity or by virtue of this Contract. ARTICLE XXV:NOTICES Any Notice required or permitted to be given under this Contract shall be in writing and shall be J served by delivery or by mail upon the other party as follows: TOWN: CONSULTANT: Mr.H. Brent Sinclair,Community Dev. Director Name and Tide of Consultant Town of Oro Valley,Arizona Name of Firm 11000 N. La Canada Drive Address Oro Valley,Arizona 85737 City, State, Zip Phone: 520.797.9797, Facsimile: 520.742.1022 Telephone, Facsimile 13 ARTICLE XXVI:NON-WARRANTY The parties do not warrant their respective right or power to enter into this Contract and if the same is declared null and void by court action initiated by third persons,there shall be no liability to the other party by reason of such action, or by reason of this Contract. ARTICLE XXVII: SEVERABILITY In the event any term or provision of this contract is held to be illegal or in conflict with any law of the State of Arizona,the validity of the remaining provisions shall not be affected, and this Contract shall be construed and enforced as if it did not contain the particular term or provision. ARTICLE I: EN PIKE CONTRACT This document contains the entire Contract between the parties and it may not be modified, amended, altered, or extended except through a written Amendment signed by the parties. 14 IN WITNESS WHEREOF,theP arties hereto have executed this CONTRACT the day and year first above written. AI"I'EST: TOWN OF ORO VALLEY Town Clerk Mayor Date ATTEST: FIRM NAME By: Notary By: Tide: Date: Fed. Tax No.: APPROVED AS TO FORM: Oro Valley Town Attorney APPROVED AS TO CONTENT: Oro Valley Town Manager END OF DOCUMENT 15 Section III. Appendices and Attachments APPENDIX A SCOPE OF PROFESSIONAL CONSULTANT SERVICES FOR THE ORO VALLEY PUBLIC LIBRARY BY [CONSULTANT NAME] A. SCOPE OF SERVICES TO BE PROVIDED BY THE CONSULTANT 1. General Provisions The Scope of Professional Services shall include all professional services required for the progr g, schematic design, design development, construction documents, construction administration and cost estimate for the Project. All work shall be performed by persons licensed in the State of Arizona for the type of q Professional Services required, or by persons under direct supervision of the licensed professional, for which the licensed professional(s) assumes responsibility. The names of the licensed professionals shall be supplied. They shall be responsible for the drawings and specifications pertaining to the Professional Services they provide, by stamping and signing all drawings and specifications for which they are responsible. The TOWN lacks the available expertise for the Project, and has therefore, by this Contract, employed the CONSULTANT. Written approval of plans, specification, and reports by the Oro Valley Town Council is only for the purpose of conformance with the program design concept of the Project. This approval does not imply approval of nor attest to the accuracy, suitability, or completeness of the design, drawings, dimensions, nor compliance with applicable codes or ordinances. Such accuracy, suitability, or completeness is the sole responsibility of the CONSULTANT for the Project. The Project budget is $3,995,000 which shall include, but is not limited to, all costs for construction, professional fees, testing, permits, development plan approval, construction administration, furnishings, equipment, costs to occupy the project and project contingency. If the cost estimate for construction of the Project is not for an amount within the construction budget,the CONSULTANT shall, in consultation with the TOWN,revise the scope and/or quality of the project to obtain a satisfactory estimate to construct the project in accordance with A.R.S. 34-104, at no additional cost to the TOWN,unless otherwise agreed upon by the TOWN. 16 The CONSULTANT shall prepare minutes of all meetings between the TOWN and the CONSULTANT, for review and approval by the TOWN. The CONSULTANT shall prepare a Master Project Schedule and Monthly Cash Flow Schedule, encompass the entire project, for review and approval by the TOWN. The CONSULTANT shall base the initial schedule upon information developed by the CONSULTANT and provided by the TOWN. CONSULTANT shall then be responsible to maintain and update the schedule on a monthly basis during the course of the Project. The CONSULTANT shall submit each schedule revision to the TOWN for review and approval. 2. Architectural and Engineering Design Services 2.1. Programming and Site Study 2.1.1 Project Initiation Upon award of this Contract and authorization to proceed from the TOWN,the CONSULTANT shall organize and lead a "kick-off" meeting to include all identified participants in this project. This meeting is intended to open the lines of communication between all participants and to verify needs, schedules, and goals of the work to take place. The participants, in addition to the Town, shall include the Tucson Pima Public Library District, the Library Technical Advisory Committee, representatives from Oro Valley Public Schools, and other groups and identified by • -= the Town. The CONSULTANT shall confirm all targets, meetings, reviews, and deliverables on a master schedule. This will be an opportunity to establish a project understanding among all team members regarding direction and responsibilities. 2.1.2 Programming Statement The CONSULTANT shall embark on a series of interviews with representatives of the anticipated operators and users of the Oro Valley Public Library for the purpose of establishing a Program Statement. The CONSULTANT shall assist the TOWN in this phase of the project to determine the goals and parameters of the Project, and to identify the methodology of achieving them. Issues of relevance include mission statements, organizational charts, program requrements, space needs and relationships, operational issues, functional organization, physical design parameters, and community relations. Copies of this Program Statement shall be shared by all participants and distributed to all members of the LIBRARY TECHNICAL ADVISORY COMM'IIEE for review and comment. Approval of the Program Statement by the Oro Valley Town Council is necessary before proceeding with the balance of the project. 2.1.3 Site Data and Inventory Concurrent with Programming,the CONSULTANT shall systematically gather information on the site and its surroundings. Relevant information includes existing infrastructure, adjacent building information, site analysis, pedestrian movement, circulation and parking,topography, environmental analysis, adjacent land uses (in particular the southwest and northwest corners of La Canada and Naranja), neighborhood conditions, Oro Valley zoning restrictions, and requirements of the El 17 Conquistador Planned Area Development. The material collected shall be documented in summary statement and/or graphic form to be distributed with the Program Statement to the LIBRARY TECHNICAL ADVISORY COMIvLITTEE and Town Council for approval. 2.1.4 Alternative Schemes Following review and approval of the Programming Statement and Site Data and Inventory,the CONSULTANT shall prepare three alternative schemes for the development of the project. Each scheme will depict the following information: ■ location and vicinity maps ■ site analysis maps and descriptions ■ program statement ■ land use plan incorporating user requirements ■ context plan of relationships and linkages to the town hail and the surrounding community ■ architectural placement and massing plan ■ building elevations of proposed structures ■ transportation plan showing arrival points, roads, and service corridors ■ parking layouts and distribution ■ pedestrian plan of walkways, linkages, building entry points and plazas ■ bicycle plan of linkages and bicycle parking/storage ■ infrastructure P lan showingconceptual connections to utilities and conceptual utility size capacities ■ landscape concept plan ■ illustrative site plan and renderings to be incorporated into public relations package ■ estimate of probable project costs ■ proposed project phasing schedule ■ future expansion of the Library ■ future expansion of the Town Hall Campus The CONSULTANT shall present the three alternative schemes to the LIBRARY TECHNICAL ADVISORY COMMITTEE,who shall forward all three schemes to the Oro Valley Town Council with a recommendation. Following approval of a specific scheme by Town Council the CONSULTANT shall proceed with the Schematic Design. 2.2. Schematic Design Upon the TOWN'S written approval of the Progr g and Site Study,the CONSULTANT shall proceed to the Schematic Design of the Project which consists of drawings, outline specifications, calculations, and other documents which establish the general scope, conceptual architectural design and structural, civil, mechanical and electrical engineering systems, scale and relationships between 18 components, and any other preliminary concerns specific to the Project. The CONSULTANT shall submit a Development Plan and Landscape Plan to the Development Review Board for review in accordance with Sec. 3-3 "Development Review" of the Oro Valley Zoning Code Revised. The Development Plan and Landscape Plan shall meet the requirements of Sec. 4-5 "Development Plan" and Article 14 "Native Plant Salvage and Landscape Plan" of the Oro Valley Zoning Code Revised. Upon review of these documents by the Development Review Board and approval by the Town Council,the CONSULTANT may proceed with the Design Development. Concurrent with submission of the Schematic Design Documents,the CONSULTANT shall submit to the TOWN a Statement of Probable Construction Cost. Approval of the Schematic Design Phase by the TOWN is necessary before proceeding on to the Design Development Phase of the Project. At the completion of the Schematic Design the CONSULTANT shall prepare and submit a model of the project at a scale sufficient to show the relationship of the Library to the Town Hall and the adjoining streets. The model should also show the building in sufficient detail to express its form, size and exterior details. 2.2.1. Design Development Phase The CONSULTANT shall proceed with the Design Development Documents, only after written approval to do so is received from the TOWN. This Phase consists of drawings and other documents necessary to fix and describe the size and character of the entire Project as to structural,mechanical, and electrical systems. Design Development Documents shall be submitted to the TOWN for review and approval. The CONSULTANT must receive from the TOWN written approval of the Design Development Documents before proceeding to the next Phase. Concurrent with submission of the Design Development Documents, the CONSULTANT shall submit to the TOWN a Statement of Probable Construction Cost,with itemized costs for materials and labor for each portion of the construction (per Construction Specifications Institute), and applicable evidence that "Value Engineering" was utilized to develop these costs. 2.2.2. Construction Documents The CONSULTANT shall prepare from the approved Design Development Documents,Construction Documents, including Drawings and Specifications, setting forth in detail the requirements for the construction of the entire Project, including coordination of the various applicable disciplines, and shall incorporate the standard Town of Oro Valley Bidding Instructions and the General Conditions of the Contract into the final Construction Documents. These Instructions and Conditions will be supplied to the CONSULTANT by the TOWN. CONSULTANT shall provide 50% and 90% complete Construction Documents for the TOWN's review and approval. CONSULTANT shall make required changes based on TOWN's review and CONSULTANT's quality control review of the Construction Documents. 19 The CONSULTANT shall submit a detailed cost estimate based on materials and labor and shall advise TOWN of any adjustments to previous detailed Construction Cost Estimate indicated by changes in requirements, general market conditions, or design refinements resulting from the continued "Value Engineering" process. The CONSULTANT must receive from the TOWN written approval of the Construction Documents stage before proceeding to the next phase. The CONSULTANT shall assist TOWN in filing the required documents for the approval of governmental authorities having jurisdiction over the Project. The CONSULTANT shall provide the TOWN with all required documentation for submittal of Building Permit, and any other permits or review processes required by said governmental authorities. These documents shall include completed permit applications, checklists,CONSULTANT Consent Form, plans, specifications, and calculations. TOWN will submit these documents and pay the required fees. 2.2.3. Bidding Phase The CONSULTANT, following TOWN approval of the Construction Documents and the latest detailed Construction Cost Estimate, shall assist the TOWN in obtaining bids, and in preparing and awarding the construction contract. A Pre-Bid Conference shall be part of the Bidding Documents Phase, and CONSULTANT shall arrange for the timely holding of such conference, to which all potential bidders shall be invited. 2.2.4 Construction Administration Phase of the Construction Contract Whenever the term "Contract" is used herein, it shall mean the Construction Contract and General Conditions adopted by the Oro Valley Town Council, and as the same may hereinafter be amended with approval of both parties after review by the CONSULTANT. The term "Contractor" as used herein shall mean the party entering into a contract with TOWN for the construction of the Project defined by the Construction Documents. CONSULTANT's Construction Administration Phase shall commence with the award of the Construction Contract and will terminate days following issuing of the Certificate of Substantial Completion. CONSULTANT's Construction Administration Services, beyond the completion time period specified above, unless due to the neglect of the CONSULTANT shall require specific written approval by the TOWN by written amendment to this contract. The CONSULTANT shall provide administration of the Construction Contract as set forth in the Construction Contract and General Conditions of the Owner- Contractor Construction Contract. The extent of the CONSULTANT duties and responsibilities and the limitations of his authority as assigned thereunder shall not 20 be modified without the written consent of the CONSULTANT, and that of the TOWN. The CONSULTANT, as the representative of the TOWN during the Construction Phase, shall advise and consult with the TOWN. All of the TOWN instructions to the Contractor shall be issued through the CONSULTANT. The CONSULTANT shall have authority to act on behalf of the TOWN to the extent provided in this contract,the Construction Contact, and the General Conditions,unless otherwise modified in writing. The CONSULTANT shall at all times have access to the Work whenever it is in preparation or progress. The CONSULTANT shall make sufficient visits to the site so as to ascertain the progress and quality of the Work and to determine if the Work is proceeding in accordance with the Contract Documents. SUB-CONSULTANTS to the CONSULTANT shall also furnish periodic written records of their inspection of the Work,which shall be submitted to the TOWN,through the CONSULTANT, for the TOWN files. The CONSULTANT shall chair a weeklyconstruction meetin on site with g Contractor and the TOWN and provide written minutes of the meetings to all attendees. The CONSULTANT shall not be responsible for construction means, methods, techniques, or procedures in connection with the Work,nor shall he be responsible for the Contractor's failure to carry out the Work in accordance with the Contract Documents; for the acts or omissions of the Contractor, Subcontractors agents or employees. However,the CONSULTANT shall immediately notify the TOWN if the Contractor is failing to carry out the work in accordance with the Contract Documents, and shall immediately notify the Contractor of work not in compliance with the Contract Documents. The CONSULTANT shall prepare a list of critical construction inspection times and items to be inspected, and said schedule shall be made part of the successful Contractor's required performance. Notwithstanding any provisions of previous paragraphs, and based on such observations at the site and on the Contractor's Applications for Payment,the CONSULTANT shall determine the amount owing to the Contractor and certify the payment of such amounts on the Contractor's Applications for Payment (AIA Form G-702). The Certification of the Application for Payment shall constitute a representation by the CONSULTANT to the TOWN based on the CONSULTANT's observations of the site and on the data comprising the Application for Payment,that the Work has progressed to the point indicated; that to the best of the CONSULTANT's 21 knowledge, information and belief, that the quality of the Work is in accordance with the Contract Documents (subject to an evaluation of the Work as a functioning whole upon Substantial Completion;to the results of any subsequent tests required by the Contract Documents; to minor deviations from the Contract Documents correctable prior to completion; and to the specific qualifications stated in the Certificate for Payment) and that the Contractor is entitled to payment in the amount certified. Then the Contractor has made proper application therefor; the CONSULTANT shall forward the certified Application for Payment to the TOWN. The CONSULTANT may decline to approve an Application for Payment and may withhold the Application in whole or in part, if in the CONSULTANT's opinion he is unable to make representations to TOWN as provided in the above paragraph. The CONSULTANT may also decline to approve any Applications for Payment, or, because of subsequently discovered evidence or subsequent inspections, he may nullify the whole or any part of any Certificate for Payment previously issued to such extent as may be necessary in his opinion to protect the TOWN from loss because of: ■ Defective work not remedied, or; ■ Claims filed, or reasonable evidence indicating probable filing of claims, or; ■ Failure of the Contractor to make payments to sub-contractors for labor, materials or equipment, or; ■ Reasonable doubt that the Work can be completed for the unpaid balance of the Contract Sum, or; ■ Damage to another contract, or; ■ Reasonable indication that the Work will not be completed within the Contract Time, or; ■ Unsatisfactory execution of the Work by the Contractor. When the above grounds are removed, payment shall be made for amounts withheld because of them. The CONSULTANT may, on request, and at his discretion, furnish to any sub- contractor, ifP racticable, information regarding percentages of completion certified to the Contractor on account of Work done by such sub-contractor. The CONSULTANT shall be, in the first instance,the interpreter of the requirements of the Contract Documents and of the performance thereunder by both the TOWN and Contractor. The CONSULTANT shall recommend decisions on all claims from the TOWN or Contractor relating to the execution and progress of the work on all other matters or questions related thereto. CONSULTANT shall provide, as part of his Construction Administration Services, Special Inspections if the Construction Documents, laws, ordinances, etc., of any public authority require any work to be specifically tested or approved, or if the CONSULTANT deems such testing or approval necessary, he shall make inspections of the Work and materials after notice from the Contractor of its readiness for P inspection. Inspection by the CONSULTANT shall be promptly made and where practicable at the source of supply. sem.s_`a The CONSULTANT shall have the authority to reject work,which does not conform to the Contract Documents, and to require, if in his opinion necessary, P special inspection or testing of any Work at any stage of progress. The CONSULTANT shall also notify the TOWN of the necessity to require the Contractor to stop the Work whenever, in his opinion,it may be necessary for the proper performance of the Contract. The TOWN, when necessary, shall issue the order to stop the Work. The CONSULTANT shall review and approve shop drawings, samples, and other submissions of the Contractor with reasonable promptness. The CONSULTANT shall furnish any requested additional instructions in writing, by means of drawings, or otherwise, necessary for the proper execution of the Work. All such instructions or drawings shall be consistent with the Contract Documents,true developments thereof, and reasonably inferable therefrom. Consultant shall prepare a Color and Finish Board for the TOWN'S review and approval. The CONSULTANT shall make minor changes in the Work not involving extra cost, delay, or claim of any kind against the TOWN and/or Contractor, and not inconsistent with the purposes of the Project. Otherwise, except in an emergency endangering life or property,the CONSULTANT shall prepare and process Change Orders at no extra cost except by WRITTEN approval and signed by the TOWN. The CONSULTANT shallP Pre are said Change Orders as well as any Request for Proposals to the Contractor. The CONSULTANT shall produce, and determine the date of issuance of the Certificate of Substantial Completion, and Final Completion, shall receive written guarantees,waiver of liens, and related documents assembled by the Contractor, and shall issue a final Certificate for Payment. B. SCOPE OF SERVICES TO BE PROVIDED BY THE TOWN OF ORO VALLEY The TOWN of Oro Valley shall provide the following items and services in support of the CONSULTANT'S work 1. Any drawings and specifications that may exist for the site and adjacent facility; however, provision of these documents does not preclude the requirement that the CONSULTANT visit the project site to confirm the accuracy of the information provided. 2. Cost of materials testing and geotechnical reports based on Project requirements defined by the CONSULTANT. .�� 3. A Project Manager from the TOWN of Oro Valley will be assigned to work with the CONSULTANT. 3 4. information regarding private utilities and services, or any other Project Specific Any g g information as required. This does not limit or negate the requirement of the CONSULTANT to verify the field conditions. 5. Assistance with establishment of CAD files and formats as defined in the attached CAD Standards. 6. Any building Materials and Finishes Standards desired by the TOWN. 7. Consultation with Risk Management Safety Officers and Hazardous Material Officers if require . 8. Boundary and Topographic survey of the project site. END OF APPENDIX A Section III. Appendices and Attachments APPENDIX B CONSULTANT FEE SCHEDULE FOR THE ORO VALLEY PUBLIC LIBRARY (CONSULTANT NAME) A. PA TO THE CONSULTANT- General If the project is abandoned or is suspended for a period of more than 180 consecutive calendar days through no fault of the CONSULTANT, he shall be compensated based on theercent e of work completed to the date of written notice of abandonment or P � P . . suspension. TOWN shall not pay CONSULTANT for anticipated profits should the project be abandoned. If the project is reinstated after a period of suspension greater than 180 consecutive calendar days, CONSULTANT's compensation may be adjusted by written addendum to the contract with mutual consent by both parties to provide for expenses incurred in the interruption and resumption of the CONSULTAINT's services. No deductions shall be made in the CONSULTANT's compensation on account of penalty, liquidated damages, or other sums withheld from payment to contractors. Before payment by the TOWN of the CONSULTANT's final invoice, the CONSULTANT shall provide a certificate stating that all amounts due engineers and other consultants have been paid or equitably discharged. B. PA TO CONSULTANT FOR PROFESSIONAL SERVICES CONSULTANT's compensation for professional services shall be in the not to exceed amounts described below for each phase of the work. Progress payments to the CONSULTANT shall be made monthly proportionate to the amount of work satisfactorily completed. Pro and Site Study- 15% $ Schematic Design 20% $ Design Development and Construction 40% $ Document Preparation Bidding Phase 5% $ Construction Administration 20% $ Total Professional Services 1 100% 25 C. PAYMENTS TO THE CONSULTANT FOR ADDITIONAL SERVICES Additional services may be authorized by the TOWN from time to time, and shall require specific written approval by the TOWN by written amendment to this contract. Compensation for Additional Services shall be based on one of the following methods: Lump sum,Hourly Not to Exceed, Percentage of Construction Cost, or other method mutually agreeable to both parties at the time additional services are requested. If "Hourly Not to Exceed" is used as a billing method then the CONSULTANT's following hourly billing rates shall apply: . r Title Hourly Rate Principals $ Project Manager ' Project Architect $ Drafter ( $ Consultant's Field Representative I $ Clerical Staff $ Other j $ "Principals" at initial Contract date are [Insert Principals Names]. If additional Principals join CONSULTANT's firm over the period of the Contract,than their names may, by mutual Contract of the TOWN and CONSULTANT, be added as Principals to this Contract. If services of a sub-consultant to the CONSULTANT are requested, CONSULTANT shall be compensated for the sub-consultant's direct billing rate times a multiplier of 1.10. D. PA S TO THE CONSULTANT"FOR REIMBURSABLE EXPENSES Payments for Reimbursable Expenses as listed herein shall be made on the same schedule as those made for professional services. CONSULTANT shall provide copies of invoices in support of Reimbursable Expenses. Compensation for Reimbursable Expenses shall be the actual amount of the expenses incurred,with no multiplier applied. Additional Reimbursable Expenses, beyond the total amount described, may be authorized by the TOWN from time to time. Additional Reimbursable Expenses shall require specific written approval by the TOWN in advance by written amendment to this contract. Approved Reimbursable Expenses for travel costs are as limited by A.R.S. § 38-623 and 624. TOWN shall not pay for the cost of CONSULTANT's long distance telephone calls, postage, shipping, plotting and printing between the CONSULTANT and his subconsultants for the purposes of coordination of CONSULTANT's and subconsultant's work. 26 • TOWN shall pay CONSULTANT's Reimbursable Expenses for automobile travel made during the course of providing service to the Project beyond a 50 mile radius from the Oro Valley Library site, at the rate of 31.5 cents per mile. Approved Reimbursable Expenses are: long distance telephone, postage, shipping, public meetings, plotting/printing, travel/lodging. Total Reimbursable Expenses will not exceed $ . END APPENDIX "B" 27 APPENDIX C _.. Oro Valley GIS/CAD Standards A. PURPOSE The TOWN requires most projects to be completed in an electronic form using GIS/CAD. The purpose of these standards is to define minimum standards required to create GIS/CAD drawings along AEC Industry standards for the TOWN's use in management and renovation over a building's anticipated life span. B. TOWN OF ORO VALLEY GIS/CAD SYSTEM CONFIGURATION 1. The TOWN uses the following system configuration: a. Intel Based CPU b. Windows ver. 95 c. ArcView 3.1 (up to AutoCAD rel. 14.01 C. GENERAL REQUIREMENTS 1. Unless waived by the TOWN,all construction contract drawings and specifications shall be created electronically. 2. At project closeout,unless previously waived, an electronic copy of the documents, including both drawings and specifications, shall be delivered to the TOWN's Project Manager on 3.5" disc, CD ROM or Iomega 100MB ZIP or 1 GB JAZ media. D. LAYERING NAMING STANDARDS 1. In order to maintain consistent Layer Naming Standards, layer naming in long format, as recommended by the AIA Task Force on CAD Layer Guidelines, shall be adopted. Refer to CAD LAYER GUIDELINES, Reccrnmencleci Designations for A rrhitecture, Engineering,and Facilities Management Computer-Aided Design,published by The American Institute of Architects, 1990. See Table-1 for examples. a-wall-prtl 1 a-wall-demo e-powr-pant e-alarm c-pave-note TABLE — 1 28 E. PEN WEIGHTS AND COLORS 1. Pen weight settings used by the Town of Oro Valley are outlined in Table - 2 shown below. The last four pen numbers are percentages of grey scale. Pen Pen Color ' Pen Greyscale 1 Number Weight %-age (mm) 1 Red 0.25 100% 2 Green 0.32 1- 00% 3 f Yellow 0.50 100% 4 Cyan I 0.70 100% 5 Blue I 0.25 100% 6 Magenta 0.32 100% 7 I White I 0.50 1- 00% 8 8 0.70 e 100% 9 9 0.25 1- 00% 10 10 0.32 1- 00% 11 11 0.50 100% 12 1 12 0.70 100% 13 ! 13 0.25 70% 14 14 0.32 70% 15 15 0.50 60% 16 16 0.70 60% TABLE-2 F. FONTS 1. Fonts used shall be standard CAD fonts or SI-LX files included on the Autodesk CD- ROM disk. CONSULTANTS may use custom,third party fonts such as "Chisel" and "AU" fonts, provided that all use or software fees are paid by the CONSULTANT, and that the CONSULTANT identify and provide those fonts for inclusion in the TOWN's font directory. F. RESPONSIBILITY OF THE PRIME CONSULTANT 1. The Prime CONSULTANT shall insure that all sub-consultants retained for the project are aware of the GIS/CAD requirements and standards contained herein, and that the electronic drawings prepared by the sub-consultants conform to these requirements and standards. END APPENDIX C 29 ATTACHMENT 1 MWBE UTILIZATION FORM Project Name: Project #: Date: Proposer Name: Firm Name Discipline Certified Estimated MWBE of Total Fee (YIN) END ATTACHMENT 1 30 1x1'1"t.At-H1Y11-,N,ii 1 Y___I ORO VALL, . _._. .. , 1 _---- -- :- _ --_--- - EY REGION Project Location ..,7, ---)--- ........ __....,, .-,.-_. -_-...,.„.. 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