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**AMENDED (10-28-99, 3:00 P.M.) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION NOVEMBER 3, 1999 ORO VALLEY COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE 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 g member. In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. 1. CONSENT AGENDA (Consideration and/or possible action) A. Resolution No. (R)99-104 Award of contract for Project No. 98/99-09 First Avenue Safety Improvements from CDO Bridge to Tangerine Road Median installation at First Avenue & Frys/Home Depot Driveways and First Ave./Naranja Drive left turn bay installation B. Resolution No. (R)99-105 Requiring that all Public Art Projects in public and private locations be reviewed by an Engineer for structural safety and durability C. OV12-97-08 Approval of Substitute Assurance Agreement Vistoso Ridge Subdivision, Lots 39-128 D. OV12-98-02B Approval of Stone Canyon Entryway Development Plan, Rancho Vistoso Neighborhood 11 located at the end of Vistoso Highlands Drive, west of Rancho Vistoso Boulevard E. Resolution No. (R)99-108 Designating the Election Date and Purpose of Election; Designating the Deadline for Voter Registration; and 11/03/99 Agenda, Council Regular Session 2 designating the place and the last date for candidates to file Nomination Papers 2. APPROVAL OF GRANT PROPOSAL TO THE ENVIRONMENTAL PROTECTION AGENCY FOR THE SAVE-A-PLANT PROGRAM 3. RESOLUTION NO. (R)99- 106 MAKING THAT DOCUMENT ENTITLED "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY" A PUBLIC DOCUMENT 4. PUBLIC HEARING — ORDINANCE NO. (0)99 — 57 RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF (NO ACTION WILL BE TAKEN — THIS PUBLIC HEARING IS ANTICIPATED TO BE CONTINUED UNTIL NOVEMBER 17, 1999) 5. ACCEPTANCE OF THE SOLID WASTE MANAGEMENT TASK FORCE REPORT AND SUPPLEMENTAL REPORT AND POSSIBLE ACTION REGARDING SOLID WASTE COLLECTION WITHIN THE TOWN OF ORO VALLEY 6. RESOLUTION NO. (R)99-107 DECLARING THAT CERTAIN DOCUMENT KNOWN AS "ORO VALLEY CENTER, PARCEL D SIGN GUIDELINES" A PUBLIC DOCUMENT 7.** DRAWING TO CHOOSE A LUCKY WINNER FROM A POOL OF ENVIRONMENTAL SENSITIVE LANDS ORDINANCE SURVEYS 8.** OV12-98-22 STONE CANYON II FINAL PLAT, COMMON AREAS A & B, RANCHO VISTOSO NEIGHBORHOOD 11 LOCATED IN THE NORTHWEST CORNER OF THE RANCHO VISTOSO PAD, NORTH AND WEST OF THE GOLF CLUB AT VISTOSO TOWN MANAGER'S REPORT ENGINEER'S REPORT FINANCE DIRECTOR'S REPORT COMMUNITY DEVELOPMENT 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 11/03/99 Agenda, Council Regular Session 3 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: 10/27/99 4:30 P.M. lh AMENDED AGENDA POSTED: 10/28/99 3:00 p.m. lh A packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:30 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. 11/03/99 Agenda, Council Regular Session 4 INSTRUCTIONS TO SPEAKERS Members of thep ublic have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for g 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. IfY ou 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 p 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. AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION NOVEMBER 3, 1999 ORO VALLEY COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE 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 Council,agenda. Any items must be addressed to the whole not a specific g member. In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. 1. CONSENT AGENDA (Consideration and/or possible action) A. Resolution No. (R)99-104 Award of contract for Project No. 98/99-09 First Avenue Safety Improvements from CDO Bridge to Tangerine Road Median installation at First Avenue & Frys/Home Depot Driveways and First Ave./Naranja Drive left turn bay installation B. Resolution No. (R)99-105 Requiring that all Public Art Projects in public and private locations be reviewed by an Engineer for structural safety and durability C. OV12-97-08 Approval of Substitute Assurance Agreement Vistoso Ridge Subdivision, Lots 39-128 D. OV12-98-02B Approval of Stone Canyon Entryway Development Plan, Rancho Vistoso Neighborhood 11 located at the end of Vistoso Highlands Drive, west of Rancho Vistoso Boulevard E. Resolution No. (R)99-108 Designating the Election Date and Purpose of Election; Designating the Deadline for Voter Registration; and designating the place and the last date for candidates to file Nomination Papers 11/03/99 Agenda, Council Regular Session 2 2. APPROVAL OF GRANT PROPOSAL TO THE ENVIRONMENTAL PROTECTION AGENCY FOR THE SAVE-A-PLANT PROGRAM 3. RESOLUTION NO. (R)99- 106 MAKING THAT DOCUMENT ENTITLED "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY" A PUBLIC DOCUMENT 4. PUBLIC HEARING - ORDINANCE NO. (0)99 - 57 RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF (NO ACTION WILL BE TAKEN -THIS PUBLIC HEARING IS ANTICIPATED TO BE CONTINUED UNTIL NOVEMBER 17, 1999) 5. ACCEPTANCE OF THE SOLID WASTE MANAGEMENT TASK FORCE REPORT AND SUPPLEMENTAL REPORT AND POSSIBLE ACTION REGARDING SOLID WASTE COLLECTION WITHIN THE TOWN OF ORO VALLEY 6. RESOLUTION NO. (R)99-107 DECLARING THAT CERTAIN DOCUMENT KNOWN AS "ORO VALLEY CENTER, PARCEL D SIGN GUIDELINES" A PUBLIC DOCUMENT TOWN MANAGER'S REPORT ENGINEER'S REPORT FINANCE DIRECTOR'S REPORT COMMUNITY DEVELOPMENT 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: 10/27/99 4:30 P.M. Ih 11/03/99 Agenda, Council Regular Session 3 Agacket of agenda materials as listed above is available for public inspection at p 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. 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. 0 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Paul K. Nzomo, P.E Civil Engineer: CIP & Development SUBJECT: Resolution (R) 99- 10 4 Award of contract for Project No. 98-99 09 First Ave. Safety Improvements from CDO Bridge to Tangerine Rd., Median installation at First Ave. & Frys / Home Depot Driveways and First Ave. / Naranja Drive left turn bay installation. SUMMARY: This project involves the installation of a left turn bay at First Ave & Naranja Drive, four foot shoulders on both sides of First Ave. from CDO Bridge to Tangerine Rd. and median installation at First Ave. and Frys / Home Depot Driveways. This will include grading, concrete header & pork chop installation, asphaltic concrete paving, friction course, pavement markings and signing, and other incidental work. These improvements will improve the safety along First Ave. as well as the First Ave / Naranja intersection. In response to the advertisement for bids, the Town received three bid proposals. The bid proposals were opened by Town staff at 2:00 p.m. on October 21, 1999. The following is a summary of the bids received along with the engineer's estimate: 1. Pima Paving, Inc $ 208,599.28 2. Dar-Hil, Cooperation $ 211,206.00 3. Cimetta Engineering & Construction Co. $ 250,834.63 Engineers estimate $ 285,913.80 ATTACHMENTS: Resolution (R) 99 -104 FISCAL IMPACT: Funding for this project is available from budgeted Town Funds for the 98/99 fiscal year. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 RECOMMENDATION: Public Works staff recommends the awarding of this contract to Pima Paving, Inc. 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- 104 OR I move to deny Resolution (R) 99- 104 W. '. A. Jans, P.E., own Engineer 416.. /.4„1 Chuck Sweet, Town Ira Hager RESOLUTION NO. (R) 99- 104 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AWARDING A CONTRACT FOR FIRST AVE. SAFETY IMPROVEMENTS FROM CDO BRIDGE TO TANGERINE RD., FIRST AVE. & NARANJA DRIVE LEFT TURN BAY AND MEDIAN CONSTRUCTION AT FIRST AVE AND FRYS / HOME DEPOT DRIVEWAYS TO PIMA PAVING, INC. 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 Manager to contract with Pima Paving, Inc. for Left-turn bay installation at First Ave. and Naranja Drive, Safety improvements on First Ave. from CDO Bridge to Tangerine Rd. and installation of a median on First Ave near Frys and Home Depot driveways. THEREFORE, BE IT RESOLVED, BY THE MAYOR AND THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: That Town Manager is authorized to contract with Pima Paving, Inc. for Left-turn bay installation at First Ave. and Naranja Drive, Safety improvements on First Ave. from CDO Bridge to Tangerine Rd. and installation of a median on First Ave near Frys and Home Depot driveways. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 3rd day ofNovember , 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 "B COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: RESOLUTION NO. (R)99- 1 a5, REQUIRING THAT ALL PUBLIC ART PROJECTS BE REVIEWED BY AN ENGINEER FOR STRUCTURAL SAFETY AND DURABILITY BACKGROUND: Recently the Town Council approved amendments to the OVZCR concerning public art on private projects. When the amendments were approved, the issues of structural safety and maintenance arose with regard to public art projects in public and private places. Members of the Council expressed interest in having projects reviewed by a staff engineer, if required by the type of art. The attached resolution addresses these issues. RECOMMENDATION: Staff recommends adoption of the proposed Resolution (attached herewith) requiring that public art in public and private places be reviewed by one of the Town's engineers to ensure the structural safety and durability of the artwork. SUGGESTED MOTIONS: I MOVE to ADOPT Resolution No. (R)99- 105 requiring that public art in public and private places be reviewed by one of the Town's engineers to ensure the structural safety and durability of the artwork. as presented in the attached resolution. OR I MOVE to ADOPT Resolution No. (R)99- 105 requiring that public art in public and private places be reviewed by one of the Town's engineers to ensure the structural safety and durability of the artwork, with the following amendments: OR I MOVE NOT to ADOPT Resolution No. (R)99- 105, requiring that public art in public and private places be reviewed by one of the Town's engineers to ensure the structural safety and durability of the artwork finding that: ATTACHMENTS: 1. Resolution No. (R)99- 105 .r% PlanninT,Zoning Administrator / / ..... citt--; Community Dev• ••ment Director 1 V/ 1telti62-1..4 Town Maria.'-r F:\PROJECTS\MISC\res_publ icartengineer2.rpt.doc RESOLUTION NO. (R)99- 105 A RESOLUTION OF THE TOWN OF ORO VALLEY, ARIZONA, REQUIRING THAT ALL PUBLIC ART PROJECTS BE REVIEWED BY AN ENGINEER FOR STRUCTURAL SAFETY AND DURABILITY AND MAKING SUCH DOCUMENT A PUBLIC RECORD. WHEREAS, in order to ensure that all public art in public and private places are structurally safe and durable, and WHEREAS, it is necessary for the preservation of the peace,health and safety of the Town of Oro Valley, Arizona, this resolution shall be effective thirty days after its passage and adoption by the Mayor and Council, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY: That all public art in public and private places be reviewed by an engineer employed by the Town to ensure the structural safety and durability of the piece of art, as required by the type of art. A report must be submitted recommending the type and size of foundation and anchoring system for sculptured art proposals, and is to include all supporting calculations. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley this 3rd day of November, 1999. Paul H. Loomis, Mayor ATTEST: Kathryn Cuvelier, Town Clerk APPROVED AS TO FORM: Dan L. Dudley, Town Attorney F:IPROJ ECTSIM ISC\pubticartengineer.res.doc ADDENDUM REPORT TOWN OF ORO VALLEY .‘10 COUNCIL COMMUNICATION MEETING DATE: NOVEMBER 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Shirley Gay, Assurance Clerk SUBJECT: SUBSTITUTE ASSURANCE AGREEMENT BETWEEN PULTE AND LAWYERS TITLE AS TRUSTEE OF 0V12-97-8 VISTOSO RIDGE LOTS 39-128: ADDENDUM SUMMARY: Lawyers Title has taken over as the trustee for Vistoso Ridge, Lots 39-128. Therefore, they request approval of a Substitute Assurance Agreement Addendum. RECOMMENDATIONS: Staff has no objections to this request if Exhibit C is changed to include: 1. the construction of Moore Road to the existing Moore Road on the east, as shown conceptually on improvement plans OV 12-97-8 sheet 16; and, 2. that Pulte Home will construct their fair share of Moore Road and associated drainage improvements adjacent to the common area to the east of lot 39. trJGGESTED MOTION: The Town Council may wish to consider the following motion: I move to approve 0V12-97-8 Vistoso Ridge I lots 39-128 Substitute Assurance Agreement with changes to Exhibit C as noted in the Staff recommendation. ATTACHMENTS: Substitute Assurance Agreement Plannin Zoning Administrator Co a. ity Development t ector Town Manager c:\INDI V ID\SAG\TCCREL.DOC TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: NOVEMBER 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Shirley Gay, Assurance Clerk SUBJECT: SUBSTITUTE ASSURANCE AGREEMENT BETWEEN PULTE AND LAWYERS TITLE AS TRUSTEE OF OV12-97-8 VISTOSO RIDGE LOTS 39-128 SUMMARY: Lawyers Title has taken over as the trustee for Vistoso Ridge, Lots 39-128. Therefore, they request approval of a Substitute Assurance Agreement. RECOMMENDATIONS: Staff has no objections to this request. SUGGESTED MOTION: The Town Council may wish to consider the following motion: I move to approve 0V12-97-8 Vistoso Ridge I lots 39-128 Substitute Assurance Agreement. ATTACHMENTS: Substitute Assurance Agreement OIS"" Planning, d Zoning Administrator Co unity Development Director :Or Town Manage F:\INDIVID\SAG\TCCREL.DOC TOWN OF ORO VALLEY "SUBSTITUTE" ASSURANCE AGREEMENT FOR COMPLETION OF SUBDIVISION IMPROVEMENTS BY THIS AGREEMENT made and entered into the day of , 19 between PULTE HODE CORPORATION ,an Michigan corporation, as Beneficiary under Trust No. 7924-T (referred to in this Agreement as "Subdivider"); LAWYERS TITLE OF ARIZONA, INC. , a Arizona corporation, as Trustee under Trust No. 7924-T (referred to in this Agreement as "Trustee"); and the TOWN OF ORO VALLEY, a municipal corporation, (referred to in this Agreement as "Town"), hereby confirm and agree as follows: 1.01 Trustee, pursuant to the land trust agreement described in Exhibit "B" is the owner of a certain parcel of land described in Exhibit "A", which is located in the Town of Oro Valley, Pima County, Arizona. 1.02 The parties to this Agreement wish to establish specific terms, conditions and guidelines for compliance with the provisions of ARS Section 9-463.01(C)(8) and Chapter 4, Article 4-9 of the Oro Valley Zoning Code Revised. II AGREEMENT 1.03. In consideration of the Town approving a final plat for the property described in Exhibit "A", commonly referred to as Subdivision Name VISTOSO RIDGE , Lots 39 through 128, and Common Areas B , Oro Valley Case No. OV12-97-8the Trustee and Subdivider specifically agree to all those conditions and requirements set forth herein. 2.01. Property Description: The property which is the subject matter of the Agreement is all that property described in Exhibit "A", which is annexed to and made a part of this Agreement. 2.02. Assurances. Pursuant to the requirements of ARS Section 9-463.01(C)(8), this Agreement is submitted as an assurance for the completion of subdivision improvements including streets, sewer, water, telephone, gas and electric utilities, drainage and flood control improvements and monuments and property corners as more fully described in Exhibit "C" attached hereto and as required pursuant to applicable Federal, State, County and Town ordinances and regulations. These subdivision improvements are required by the Town of Oro Valley, the improvement standards of the Director of Water, Pima County Wastewater Management Department, the gas and electric utilities and State Statutes and regulations, which requirements are in effect on the date of execution of this Agreement. 2.03. Limitation on Transfer of Title. The Trustee shall not convey title to any of the property described in Exhibit "A" without obtaining prior written approval from the Town in the form of a Release of Assurance signed by the Town Engineer. The Trustee may act in full faith and reliance upon the Release of Assurance. A Release of Assurance shall only be provided the Trustee by the Town upon satisfactory completion and formal acceptance by the Town of the required improvements. The Trustee's only duty under this Agreement is not to convey without first obtaining a Release of Assurances. 2.04. Contracts for Sale. The limitation on the conveyance of title contained in paragraph 2.03 notwithstanding, the Trustee may enter into contracts for sale of the property described in Exhibit "A", provided such contracts clearly state that the conveyance of title to the property is subject to the limitations contained in this Agreement. The Trustee shall, prior to entering into such contracts for sale, provide the Town with a copy of the form of contract containing the disclosure of limitation on the power to convey. 2.05. Bulk Sales. The limitation on the conveyance of title contained in paragraph 2.03 notwithstanding, the Trustee may sell and convey all of the property described in Exhibit "A" in one transaction to a single purchaser, provided that the purchaser shall, prior to conveyance, have submitted to the Town satisfactory assurances for the completion of the required improvements. 2.06. Conveyance Out of Trust for the Purpose of Encumbrance. The limitation on the conveyance of title contained in paragraph 2.03 notwithstanding, the Trustee may convey all or part of the property described in Exhibit "A" to the Subdivider or Beneficiary of the Trust solely for the purpose of encumbering the property by the recording of mortgages or deeds of trust, provided the property is thereafter immediately reconveyed into the Trust. 2.07. Completion of Improvements. The required improvements shall be completed within two (2) years of the date that the Town Council approved the final plat. This period for completion of improvements may be extended subject to Town Council approval and applicable Town ordinances where Subdivider is prevented from completing the improvements by act of God, strike or similar event or circumstances beyond its control or when such extension is determined to be reasonable and prudent by the Town Council. Any such extension granted shall not exceed one (1) year. 2 2.08. Substitution of Assurances. At any time during the period described above in paragraph 2.07 for the completion of improvements (or, if such time for completion of the required improvements has been extended by subsequent agreement of the parties, at any time on or before such extended date for the completion of improvements), Subdivider or Trustee may offer substitute assurances. Such assurances shall be in a form and amount acceptable to the Town and shall be subject to review and approval by the Oro Valley Town Council. 2.09. Inspection and Acceptance of Improvements. The Town may provide for the inspection of the required improvements to insure satisfactory completion. The Town will not accept dedication of the required improvements, nor release, in whole or in part, any pP Y subjectAgreement ert to the A reement until the improvements have been satisfactorily completed and accepted by the Town Engineer. 2.10. Partial Release of Assurances. The Town may provide the Trustee with a Release of Assurance for a portion of the lots created by the subdivision plat attached as Exhibit "A", provided that all of the improvements required in connection with such lots have been satisfactorily completed and accepted by the Town and provided further that such improvements can be used and maintained separately of the improvements required for the entire subdivision plat. For example, temporary cul-de-sacs should be provided for incomplete streets; water, sewer, gas, telephone and electric facilities should be capable of independent operation; and adequate access for public safety vehicles should be provided. 2.11. Failure to Complete Improvements. In the event that Subdivider fails to complete the required ed improvements within the period provided in paragraph 2.07 above, the parties agree that the Town may initiate a process to re-plat that portion or portions of the property described in Exhibit "A" for which the improvements have not been satisfactorily completed. The purpose of such plat initiated by the Town will be to return the property to approximately the same boundary configurations of record existing before recording of the subdivision plat described in Exhibit "A". Prior to initiating any action to re-plat the portion of property for which improvements have not been completed, the Town shall provide the Trustee and Subdivider with thirty (30) days written notice of the Town's intent to re-plat. The notification shall be sent by first class mail, shall be deemed received upon mailing and shall be sent to the following addresses: 5255 E. Williams Circle #1050 7493 N. Oracle #115 Tucson, AZ 85711 Tucson, AZ 85704 Trustee Subdivider 3 ep Ue Uu tu: i ra L,ommuniL� Lever1uNi���i Or,•-• --__ , The Trustee and Subdivider, as record owner and subdivider, respectively,ectivei , agree that they will execute such plat returning relevant portions of the property to approximately Nii„,.. the same boundary configuration of record existing before recording of theP lat described in Exhibit "A". • The parties hereto have executed this Agreement this . day of 19 . TOWN OF ORO VALLEY a municipal corporation MAYOR COUNTERSIGNED: As Town Clerk and not personally • APPROVED AS TO FORM this day of , 19_. DAN DUDLEY, Town Attorney DEVELOPER/SUBDIVIDER: PUL H. CO 'ORATION .? BY: Panclal M. AS: ,President, Tucson Division STATE OF ARIZONA) ) ss COUNTY OF PIMA ) This instrument was acknowledged before me this i2S- day of O a „..,_ _, 1911, by u as /D - of PtiLre- PiAAE- . OFFICIAL SEAL ? LINDA C. DANCIL • = '---0NOTARY PUEL!C-ARIZONAvi, ` �� T�• PIMA COUNTY NOTARY PUBLIC :,+v Co-17:=_,:,:res Ajg 25. 2002 My commission expires 4 TRUSTEE: � RUSTEE: Lawyers Title of Arizona, Inc., an Arizona Corporation as tee under 7924-T (\-44% -4111 7f72 M P �a '�. t- Vice President • STATE OF A IZONA) COUNTY OF PIMA ) This instrument was ledged before me this day of 0,t-te r , 19 99 , by Jn p _M Pndda ,as Asst, Vice Pres. Of ers Title of Arizona, Inc, , an Az. Corn. , as the act of said corn. , as .tee. 0-414,44111111116* �L SEAL / twz "fir DORIS J. CLARK NO'• •Y PUB C ► c, g NOTARY PUBLIC-ARIZONA PIMA COUNTY MCoram. Expires Mar. 7,2000 My Corm mesion Expires • EXHIBIT tiCt' Subdivision Mme VISTOSO RIDGE OV Cse 1. OV12-97-8 Zhst t. = 7924-T . The followipg inprovements .nd conditions are made of the attachedAnsucance _ 1. Paving of the streets included in N • . . ;•..- - -- • 'ane 2. A pupal is water system satisfactory to the Town of Oro Valle water 3. A sanitary mer system satisfactory to Pima Cbunty- Wastewater Winagement. 4. .A telephome distribution system satisfactory to US West Ctumunications_ 5. An electric distribution system satisfactory to meson Electric Power Clompany. 6. Fixe Hydrants and other fire es satisfactory to the ._._ Golder Ranch Fire Department. 7. A natal gas gasdistribution system satisfactory to SouthwEst Gas Cbrporation (if gas is being utilized in the subd-vision) . 8. • Utility and civil . satisfactory to the using utilities. 9. Mnstallation of all street signs and street striping. 10. The Professional Engineer of Record shall certify, in writ• ng, that all inprovernants, whets private or public, have boaa placed, installed, etc. in substantial conformance with the plans for this development, Certifications, in writing, are to be received by the Tboan Engineer of the Town of Cro Valley prior to any rewest for buildingFP.xmits and/or final inspection and the release of . i EXHIBIT "A" Lots 39 through 128 of VISTOSO RIDGE, a subdivision of Pima County, Arizona, according to the map or plat thereof of record in the office of the County Recorder of Pima County, Arizona, in Book 50 of Maps and Plats at page 75 thereof. EXHIBIT "C" Subdivision Name : VISTOSO RIDGE OV Case No. : OV 12-97-08 Trust No. : 4781 The following improvements and conditions are made a part of the attached Assurance Agreement: 1. Paving of the streets included in Vistoso Ridge Street Plans OV12-97-8 2 . A public water system satisfactory to the Town of Oro Valley (RV) Water Company. 3 . A sanitary sewer system satisfactory to Pima County Wastewater Management. 4 . A telephone distribution system satisfactory to US West Communications. 5. An electric distribution system satisfactory to Tucson Electric Power Company. 6 . Fire Hydrants and other fire appurtenances satisfactory to the Golder Ranch Fire Department. 7 . A natural gas distribution system satisfactory to Southwest Gas Corporation (if gas is being utilized in the subdivision) . 8. Utility trenches and civil appurtenances satisfactory to the using utilities. 9 . Installation of all street signs and street striping. 10. The Professional Engineer of Record shall certify, in writing, that all improvements, whether private or public, have been constructed, placed, installed, etc. in substantial conformance with the approved plans for this development. Certifications, in writing, are to be received by the Town Engineer of the Town of Oro Valley prior to any request for building permits and/or final inspection and the release of assurances. 9 10712 422 ' 't "C" - page 2 The Soils Engineer of recu=d or other Registered Profesional Civil Engineer with expertise in the areas of soils engineering shall certify, in writing, that all materials utilized on this development are in ccnformance with the accepted plans and specifications. Certifications, in writing, are to be received by the Town of OTO Valley prior to the request for huilding penults and/or final inspection, and release of assurances. 12. The soils Engineer of Record or other Registered Professional Civil Engineer with expertise in the area of Soils Engineering shall certify, in writing, that all soils operations for this develotperforrmd in aca)rdance with the reccunv_ndations as set forth in the Soils • - I.. and any anerkiments thereto, by Pesti son- Jbb 11b. _97-118 , dated June 25_. , 1prnL. 9 NO Certification, in writing, is to be received by the Tbwn Ebeineer of the Tbwn of Oro Valley prior to the request for any building permits arid/or final inspection and the release of assurance . 13. As-built drawings shall be provided to the 'In of Oro Valley Publico Department prior to full release of assurances. TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November 3rd, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: David Marsh, Planner I SUBJECT: OV12-98-02B, Stone Canyon Entry Way Development Plan, Rancho Vistoso Neighborhood 11, Located at the end of Vistoso Highlands Drive,West of Rancho Vistoso Boulevard BACKGROUND: The WLB Group, representing the property owners, request approval of a project Development Plan. The 0.69- acre property is located at the western termination of Vistoso Highlands Drive, west of Rancho Vistoso Boulevard. The property is abutted on the east and west by a golf course, to the north by the Stone Canyon I subdivision, and to the south by the Rancho Vistoso 11 AF subdivision. The site is currently developed as part of the golf course. SUMMARY: The property owners propose to develop an entryway and gatehouse on site to serve the adjacent Stone Canyon residential developments. The proposed development will be located between two of the golf holes, and will consist of a gatehouse, access drives, a turn around point for emergency vehicles, and three parking spaces. An existing golf cart path will be relocated on site to allow for the placement of the guardhouse. Planning & Engineering issues are discussed below. OVZCR and Rancho Vistoso PAD The submitted development plan is in compliance with all planning requirements of the OVZCR and the Rancho Vistoso PAD. Traffic The purpose of these improvements is to complete the gap in the pavement between Stone Canyon I—South and the end of the pavement of Rancho Vistoso Highlands Drive. This portion of Rancho Vistoso Highlands Drive is presently under construction in Rancho Vistoso Neighborhood 11, Parcel AF. No new traffic will be generated by this development. Drainage The amount of runoff that is generated by this development is minor. Runoff will be conveyed to existing drainage improvements,to the west through an existing 36-inch storm sewer and to the east through an existing swale adjacent to the roadway. Grading The area will be mass graded with finish grades blending into existing grades to the north and south. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 DEVELOPMENT REVIEW BOARD ACTION: At its October 12th, 1999 meeting, the DRB voted 4-0 to recommend approval of this item. GENERAL PLAN COMPLIANCE: The Stone Canyon Entry Way Development Plan is in compliance with the General Plan land use designation for this site, which is Low Density Residential (0.6 - 1.2 DU/ac) and Parks / Open Space. RECOMMENDATIONS: Staff recommends approval of this item, with the conditions listed in Exhibit"A". SUGGESTED MOTION: I move to approve OV 12-98-02B, Stone Canyon Entry Way Development Plan, with conditions listed in Exhibit "A". OR I move to approve OV 12-98-02B, Stone Canyon Entry Way Development Plan, with conditions listed in Exhibit "A", and the following additional conditions: OR I move to deny OV12-98-02B, Stone Canyon Entry Way Development Plan, finding that: . ATTACHMENTS: 1. Exhibit"A" 2. Reduced Copy of Development Plan b4L— PlanrilM d Zoning Administrator 7nr--,t.tjl--cl C nity Dev= •pment Director • f/ 4 Town Manager F:\OV\OV 12\1998\12-98-2b\DPTC.rpt.doc EXHIBIT "A" l• ` CONDITIONS OF APPROVAL OV12-99-02B STONE CANYON ENTRY WAY DEVELOPMENT PLAN 1. The architecture for the guardhouse shall be submitted for review and approval by the Development Review Board. 2. The drainage statement must be revised to reflect the following: • Show the break down of the 1300 square feet entry building area into building, patio, walkway and wall areas. • Remove the 42-inch storm pipe dimension at concentration point 1 E and insert the correct size of 36- inch. 3. 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I o9AI ; . 1 eit I I w O O m Z n I I G7 1 �,�o " u I ' O S8 o f. �'yr o-.; n m I O 1= I Ncnl EZ. 8 hi b mg3o m A III I ►; ,�_. I I l�. V C fel '•!!`. � --1 3 .7P,I 7 \ 0 pN W m a$ii_''• m o 1 , ,I O rte l... I • I I' N 2,o1Vj c, I I 1E TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: February 17, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: Kathryn Cuvelier, Town Clerk SUBJECT: Resolution No. (R)99-108 Designating the Election Date and Purpose of Election; Designating the Deadline for Voter Registration; and Designating the Place and the Last Date for Candidates to file Nomination Papers SUMMARY: The attached resolution sets out the Primary Election Date as March 14, 2000 for the purpose of nominating candidates for 3 Council Member seats whose names shall appear on the ballot at the General Election to be held on May 16, 2000. Any candidate receiving a majority of all the votes cast at the Primary Election will be declared elected without running at the General Election. Voter Registration deadline is 5:00 p.m. on Monday, February 14, 2000. Candidates seeking municipal office may obtain nomination papers and other materials at the Oro Valley Clerk's Office beginning on Monday, November 15, 1999. Deadline for filing candidate nomination papers is 5:00 p.m. on Wednesday, December 15, 1999. ATTACHMENTS: 1. Resolution No. (R)99-108 FISCAL IMPACT: $55,000 has been budgeted for the primary/general election. SUGGESTED MOTION: I MOVE to approve Resolution No. (R)99-108, designating March 14, 2000 as the Primary Election Date and May 16, 2000 as the General Election Date. I, C- CL, C1 ,,-N Departm-nt Head / / / , - / 4 Town Manager CALL OF ELECTION RESOLUTION NO. (R)99-108 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, DESIGNATING THE ELECTION DATE AND PURPOSE OF ELECTION; DESIGNATING THE DEADLINE FOR VOTER REGISTRATION; AND DESIGNATING THE PLACE AND THE LAST DATE FOR CANDIDATES TO FILE NOMINATION PAPERS. BE IT RESOLVED, by the Mayor and Council of the Town of Oro Valley, Arizona, as follows: Section 1. Designation of Election Date; Purpose That March 14, 2000 has been set as the time for holding the Primary Election in the Town of Oro Valley, Arizona for the purpose of nominating candidates for 3 Council Member seats whose names shall appear on the ballot at the General Election to be held on the 16th day of May 2000. Any candidates receiving a majority of all the votes cast at the Primary Election will be declared elected without running at the General Election. Section 2. Designating Deadline for Voter Registration Pima County registration and voting lists will be used for the municipal election. In order to be qualified to vote you must be registered by 5:00 p.m. on Monday, February 14, 2000. Section 3. Designating Date and Place To File Candidate Nomination Form Candidates seeking municipal office may obtain nomination papers and other materials which must be filed by candidates at the Oro Valley Clerk's Office, 11,000 N. La Canada Drive beginning on Monday, November 15, 1999. Candidates must file nomination papers and other nomination forms by 5:00 p.m. on Wednesday, December 15, 1999, at the Oro Valley Clerk's Office, 11,000 N. La Canada Drive in order for their names to appear on the Primary Election ballot. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 3rd day of November, 1999. APPROVED this 3rd day of November, 1999. Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Dan L. Dudley, Town Attorney 2 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Melissa Shaw, AICP, Planner II SUBJECT: PROPOSAL TO THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, REGION IX, ENVIRONMENTAL EDUCATION GRANT PROGRAM TO PARTIALLY FUND THE TOWN OF ORO VALLEY SAVE-A-PLANT PROGRAM BACKGROUND: The Environmental Protection Agency (EPA) is soliciting proposals for the Environmental Education Grants Program. This program provides financial support for projects which "design, demonstrate, or disseminate environmental education practices, methods, or techniques". Environmental education is defined as "increasing public awareness and knowledge about environmental issues; provides the public with the skills needed to make informed decisions and take responsible actions; enhances critical-thinking, problem-solving, and effective decision-making skills, and teaches individuals to weight various sides of an environmental issue to make informed and responsible decisions-. A volunteer with the Planning & Zoning Division has prepared a grant proposal for submittal to the EPA that, if awarded, will enhance and support the Town of Oro Valley's Save-a- Plant program through development of a strong educational component. VOLUNTEER SUPPORT: Interested and dedicated volunteers are crucial to the success of the Save-a-Plant program. The Planning & Zoning Division has recently been fortunate to have caught the attention of two exceptional volunteers, Ms. Karen Rogers and Ms. Louise Harrison. Both are Town residents who have been instrumental in championing Save-a-Plant. Ms. Rogers organized the Catalina Shadows Homeowners Association Save-a-Plant project, designed the Save-a-Plant brochure and has been actively working to publicize the program. Ms. Harrison was involved with the Catalina Shadows project, and developed a strong interest in the program. She approached staff offering to volunteer her time for Save-a-Plant. Save-a-Plant has been run by staff as time is available, and the administrative function needs additional support in order to fully develop and expand the program's potential. Toward that end, Ms. Harrison has been volunteering 10 hours of her time per week since mid-September, exclusively for Save-a-Plant. Ms. Harrison has been acting as the Program Coordinator, performing tasks ranging from organizing a database, making calls to coordinate projects, and preparing this grant proposal in particular. There are numerous grant funding sources, and the process is very competitive. For some time, the Planning & Zoning Division has been considering the potential that grant-funded programs have, but other work plan projects have taken priority of available staff resources. Grant proposals require a considerable effort to research, organize and write. The proposal Ms. Harrison has written is the first in what we would like to be a series, not only for Save-a-Plant but for other planning projects as well. This proposal could not have been esearched and written without Ms. Harrison, and planning staff would like to acknowledge Ms. Harrison for her efforts. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 3 GRANT SUMMARY: The focus of the proposal is a request for funding to develop a field-based native plant salvage course with a native plant expert, supporting literature for groups and individuals detailing procedures and strategies needed to organize volunteers and "Save-a-Plant" projects, and developing and delivering formal presentations to target groups (HOA's, schools, service organizations and churches). If awarded, a significant portion of the grant will be used to fund a part-time Program Coordinator position. Other costs include supplies, printing and mailing, and instructor fees. The EPA requires a minimum of 25% local matching funds. Staff is proposing an in-kind match utilizing five hours per week of existing staff time to oversee the program, and private contributions toward native plant permit fees, for a total of 47% local in-kind match. In sum, the grant proposal is structured in a manner that the Planning & Zoning budget will not be impacted, and a financial outlay will not be required. A detailed budget is included in the proposal. RECOMMENDATION: Planning staff recommends that the Town Council approve the grant proposal to the EPA's Environmental Education Grant Program requesting funding to enhance the Save-a-Plant program, including the provision of local in-kind matching funds. We also recommend formal recognition of Ms. Rogers and Ms. Harrison for their exceptional volunteer efforts. SUGGESTED MOTION: The Oro Valley Town Council may wish to consider one of the following motions: I move to approve the grant proposal to the EPA's Environmental Education Grant Program requesting funding to enhance the Save-a-Plant program, including the provision of local in-kind matching funds. I also extend appreciation and thanks to Ms. Rogers and Ms. Harrison for their exceptional volunteer efforts. OR I move to approve the grant proposal to the EPA's Environmental Education Grant Program requesting funding to enhance the Save-a-Plant program, including the provision of local in-kind matching funds. I also extend appreciation and thanks to Ms. Rogers and Ms. Harrison for their exceptional volunteer efforts. The following revisions are also included: . OR I do not support the grant proposal to the EPA's Environmental Education Grant Program requesting funding to enhance the Save-a-Plant program, finding that: . TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 3 ATTACHMENT: 1. Grant Proposal to EPA Region IX, Environmental Education Grant Program F:\INDIVID/MJS/SAVE-A-PLANT/GRANT PROPOSAL TOWN COUNCI REPORT Pl. d Zonin Administrator Community Deve •r ment Director i I,'41!.I Town Manage 1. PROJECT SUMMARY Organization: The Town of Oro Valley, Arizona, population 25,455, is located six miles north of the Tucson City limits. Incorporated in 1974, it covers 32 square miles and from 1990 to 1995 was the fastest growing community in Arizona. The majority of land use within the town is residential, with approximately 40% of the land area still undeveloped. Plant and animal communities common to the Sonoran Desert characterize the surrounding environment, and unique and sensitive riparian areas are also characteristic of the town. Key Partners to the grant are The Town of Oro Valley, responsible for providing in-kind program oversight, development and implementation and Bill Adler, a citizen committed to providing limited funds. Summary Statement: In July 1997, the Town Council initiated the Town of Oro Valley Save-a-Plant Program. It was proposed after identifying that, on most properties facing development, there are often hundreds of native plants not salvaged. Although the Town's zoning code requires inventory and salvage of protected plant species, excess materials and other types of plants are often destroyed. Through the Save-a-Plant program, the emphasis is to prevent native desert plants from being lost due to development. Plants not listed on the protected plant list or excess plants identified for removal on properties where grading and development will soon occur may be salvaged by individuals and non-profit groups, such as Home Owners Associations (HOA's). The salvage process is coordinated by the Town of Oro Valley and potential salvage sites are identified through liaison with landowners and developers. After the developer has salvaged plants under the requirements of the zoning code, the site is then assessed for the Save-a-Plant program and volunteers are identified to carry out the procedure of removing plants. The salvaged plants are then re-planted in disturbed areas in need of revegetation, recreation trails, and areas with enhanced desert landscaping. To date, the effect has been to restore native Sonoran Desert plants to disturbed areas. Several salvage operations have now taken place and a need has been identified to gain greater public awareness of the program and provide further practical environmental education for interested parties, primarily the volunteers. The goal of the proposed project is to provide, through the existing Save-a-Plant program, education to increase community awareness of an environment preservation issue and provide volunteers with the practical skills and knowledge required for a successful salvage operation. The objectives are to develop educational opportunities through group presentations, literature and a scheduled field-based course each designed to raise public awareness and provide practical education for volunteers for a trial period of one year. The program is proactive and progressive and designed to compliment the existing zoning code. It is an initiative, which is community based, bringing together landowners, developers and volunteers and it encourages mutual co-operation through the common purpose of preserving the unique plants within our environment. Educational Priority: Community Issues: Educating the public about environmental issues in their communities through community-based organizations. Delivery Method: Presentations, free literature (including use of web-site) and participation of volunteers in a no-fee field based course. Audience: Oro Valley residents from all ethnic and cultural backgrounds and age groups, including school students, winter visitors and elderly residents, members of the wider community and other groups such as horticultural societies. Program awareness will extend across the entire community, through support of presentations, literature, and the field course. The goal is to attract approximately 90 volunteers per year. Costs: (1) Provision of Human Resources to co-ordinate the Save-A-Plant program. (2) Provision of presentation support material,educational literature and associated costs. (3) Provision of an expert on Native Plants to conduct the field course. (4) Provision of permits,tools and small equipment for use in training and salvage operations. 1 2. PROJECT DESCRIPTION Goals and Objectives Since its initiation in 1997, the Save-a-Plant program has operated on a very limited basis and has primarily been responsive to the environmental issue of preservation only when developers and volunteers can be found and matched at the same time. From reports received by the Town Planning Staff from developers and volunteers and from public discussion at Council Meetings and overall reaction to media coverage of salvage operations, there is significant support for the program. Many residents are concerned about the interface between development and environmental issues, however, there is still a general lack of awareness within the community of the opportunities to preserve our environment. In addition, prospective volunteers are reluctant to come forward without a mechanism for proper support and training. The value of the overall goal to increase community awareness and provide practical education for volunteers was highlighted recently during the two largest and most successful salvage operations to date, where over 300 native plants were salvaged. Evaluation has shown that their success was due to familiarity with the program, salvage training by an expert, organization and co-ordination of the salvage by the volunteer group and mutual co-operation with the Town Planning Staff and Developers. The volunteers became committed to the environmental issue through education and their practical experience. The primary objective is to build on this event and take a proactive approach to the issue through environmental education and it is envisaged that well-informed volunteers will be prepared and equipped to carry out salvage operations each time an opportunity arises. It is proposed that previous successes and learning points can be formalized and then delivered through methods outlined below in a pilot scheme to raise overall community awareness and address volunteer training in a way which will be suitable for both individuals and groups. Increased environmental awareness will impact the general attitude of residents to their environment and develop an appreciation of the interface between development and conservation. It encourages communities to become actively involved in preservation of the environment and they also benefit directly from improved natural landscaping throughout their community. Developers are given the opportunity to work with the community to mitigate losses to the environment through construction. The scheme is low cost because it is voluntary and can have only a positive effect on the environment. Educational Priority The project addresses the priority to educate the public about an environmental issue, which is the need to preserve our native plants and our unique surroundings and will achieve this through the Save-A-Plant program which is community based and operated. The importance of the environmental issue to the community is highlighted by the codes and legislation created by the town and state which protect many of the native plants and require that native plants are retained/used within the landscaping of developed areas. As expressed in the General Plan, the Town has a core community goal of "providing for the integration of the manmade with the Sonoran Desert environment." These establish the basic principles of conservation and preservation of the Desert environment, which the Save-a-Plant program was designed to reinforce, and has been shown to fill a void. Through the program, the impact on the environment by development is mitigated through increased awareness and knowledge, preservation of our native plant species and re-creation of our unique surroundings through natural landscaping techniques. The emphasis is to prevent plants from being lost as a result of development, placing them in a safe and undisturbed location, allowing recovery of the specimen and encourages the return of other native animals and insects dependent upon them. The proposed Grant will enable the program to be developed further to support the basic principles through education and positive action. If a success, it is envisaged that the project can be expanded with annual funding of the part-time dedicated program coordinator/expert to run the educational activities in-house and establish a community nursery for holding excess plants. This is envisaged as a joint venture to coincide with the Town's Parks and Recreation commitments, which include development of an interpretive park which will have an educational focus. Further educational opportunities 2 are also envisaged, which include development of a school-based project to recognize the value of learning from the principles established by the Save-a-Plant program. Target Audience The Town's General Plan acknowledges that Oro Valley is "a community in transition ... and experiencing tremendous physical growth and demographic change." Diversity is encouraged and it is seen as a primary strength within the Save-a-Plant program. It has the potential to draw together a wide variety of people from all cultures, backgrounds, age groups and interests through a common purpose and encourages a shared experience within a community-based project in a climate of team work and co-operation. Awareness of the program through presentation and literature has the potential to reach thousands throughout the community and it is anticipated that through six field courses per year, with an average of 15 participants, approximately 90 trained volunteers can be attained. Educational and Delivery Methods The proposed grant will allow the Town to develop the Save-a-Plant program, in order to promote and further its educational value based on a common purpose, mutual co-operation and a practical approach to preservation of the environment. The educational and delivery methods to be used in the pilot scheme the grant will support are as follows; (1) Formal Presentation to be delivered to interested groups. To include an overview of the environmental issue, the Save-a-Plant program, the role of volunteers, how to volunteer and the benefits of becoming involved. It will be delivered through a formal verbal presentation, supported by a brochure (see#2 below). Opportunities will arise by development of contacts and invitation to group meetings, such as HOA's as they occur. (2) Literature to promote the program and the use of other educational opportunities. To include development of a brochure detailing the environmental issue, the Save-a-Plant program and the procedure as a volunteer. It will be available as part of Town information, welcome packs and relevant mail-shots. There are also other educational vehicles that can be used to strengthen the exposure of the program. For example, the Town has a web-site, which could present educational information on the program and gain exposure to a worldwide audience. There is also a Citizen's Institute of Planning course, run annually, which can incorporate elements of the program. The development of other educational opportunities will also be explored as they arise. The tone of all literature will emphasize the community-based approach to the issue and encourage a partnership approach of all interested parties. (3) Participation in a scheduled field based course with an expert. The field based course will be run six times per year (during winter months), accommodate 15-20 participants, last two hours, will be held at a development site within the Town on a Saturday morning and delivered by an expert in Native Plants. It will supplement information received at a presentation or from literature. Educational Products and Critical-thinking/Problem-Solving Skills The course will use questioning, demonstration and hands-on techniques to give an overview of a typical site, safety issues,the procedure for identifying suitable plants,the process of tagging and obtaining permits and how to remove, transport and re-plant specimens. Plant placement and aftercare will also be included. The course will aim to give ownership of the salvage to the volunteers as a group by encouraging a volunteer coordinator to become the liaison with the developer and organize the salvage when a site is made available. The advantage to this approach is that it will encourage groups to work together to determine their specific landscaping requirements and compare these with the salvage opportunity and decide which plants to salvage and where they will be re-planted. The course will ensure volunteers are given the practical ability to salvage plants and the skills and understanding of the wider issues to make informed decisions when choosing plants and the location they will be transplanted to. A Summary Sheet to 3 cover key learning points will be provided. Evaluation of volunteers completing the course and a suitable certification method is to be determined by the expert leading the course,subject to Town approval. Timeline The project will initially be a pilot scheme of one year,from the commencement of the fiscal year in July 2000. Prior to July 2000,the formats for presentations and literature about the program will be developed. July 2000 onwards—Launch Brochure Publicize brochure through Town web-site,Town Council Meetings, press release and any other opportunities as they present themselves. July 2000—September 2000 Recruitment for Field Based Course October 2000—April 2001 Field Based Course to be run on the first Saturday of each month. April 2001-July 2001 Evaluation of proposed pilot scheme with a report submitted to Council in June 2001 and final report submitted to EPA in July 2001. 3. PROJECT EVALUATION Effectiveness Presentation-Feedback comments and queries raised. Literature—Feedback through comments and queries raised. Field Course—Evaluation Sheets to be completed by participants and expert. Salvage Operations— Evaluation Sheets of operation to be completed by Developers and Volunteers. Comparison of the number of actual salvages carried out compared to the potential number. The number of native plants salvaged. Application of Data Results of the above will be evaluated by Town of Oro Valley Planning Staff and the Program Coordinator. A report will be presented to the Town Council for finalization and consideration of extension and/or expansion of the project beyond the year of EPA funding and the final report will then be forwarded to the EPA. 4 4. BUDGET Budget for Proposed Community-Based Environmental Education (1) Provision of Human Resources to Oversee the Implementation of the Save-A-Plant program Program oversight for 52 weeks @ 5 hours per week @ 17.41 per hour $4526.60 (2) Private Funds Permits for removal and transport of Native Plants $1000.00 Local In-Kind Match $5526.60 (2) Provision of Presentation Support Material, Educational Literature and Associated Costs Information Sheet on how to organize a volunteer group,to be used at Presentations. Brochure detailing procedures in a Salvage Operation,to be used for volunteers. Design for brochure, information sheet and web site @ 32 hours @ 17.41 per hour $557.12 Printing and Mailing $800.00 (3) Provision of a Training Course Program Coordinator for 52 weeks @ 10 hours per week @$15.00 per hour. $7800.00 Includes correspondence, telephone calls, liaison with volunteers and developers, organization of salvage operations, presentations, co-ordination of training and evaluation. Also included is publicity, allows for web site update, press releases and information to the Town Council Instructor Preparation 10 hours @$50.00 per hour $500.00 Instructor Attendance at 6x2-Hour Courses @$50 per hour $600.00 Summary Sheet production $20.00 Evaluation and Certification production $50.00 (4) Provision of Resources/Supplies for Training and Salvage Planning Staff Time for attendance at training and salvage events 10 Salvages and 6 Courses=42 hours @$17.41 $731.22 Shovels x 20 @$4.18 each $83.60 Picks x 10 @$16.30 each $163.00 Digging Bar x 10 @$19.90 each $199.00 Pots x 100 @ .50c each $50.00 Instructor Supplies $50.00 Water Cooler $15.00 First Aid Kit $20.00 Vehicle Provision for Transport of Plants 10 days @$35.00 per day $350.00 Permits for removal and transport of Native Plants $200.00 Salvage Evaluation Sheet Production $10.00 Federal Share $11618.94 5 3 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: David L. Andrews, Finance Director SUBJECT: Resolution No. 99- 106 Making that Document Entitled"The 1999 Amendments to the Town Tax Code of the Town of Oro Valley, Arizona" a Public Record SUMMARY: The League of Cities and Town, once again, is coordinating amendments to local sales tax laws to reflect recent changes in state law to make compliance with the tax code easier for businesses. "The 1999 Amendments to the Town Tax Code of the Town of Oro Valley, Arizona" contains several proposed amendments to the Oro Valley Town Code pertaining to sales tax. Should the Council desire to consider and possibly adopt the proposed amendments in its next agenda item, the attached resolution making the amendments a public record must be adopted. ATTACHMENTS: 1. Letter of explanation from the League of Arizona Cities and Towns. Resolution No. 99- 106 RECOMMENDATION: I recommend adoption of Resolution No. 99- 106 making that document entitled"The 1999 Amendments to the Town Tax Code of the Town of Oro Valley, Arizona" a Public record. SUGGESTED MOTION: I move to adopt Resolution No. 99- 106 making that document entitled"The 1999 Amendments to the Town Tax Code of Town of Oro Valley, Arizona" a Public Record. 2-.)-4,m)% David L. Andrews Finance Director Chuck Swe- Town Manager �tiOIkiA 'r * THE LEAGUE OF ARIZONA CITIES & TOWNS * M 1820 W Washington St • Phoenix AZ 85007-3294• (602)258-57$t • FAX (6()2)253-3874 • E-mail league@ m`.state.ar.us 4.1 '# 7t September 28, 1999 TO: Chuck Sweet, Town Manager, Oro Valley FROM: Catherine F. Connolly, Executive Director SUBJECT: TAX CODE AMENDMENT FOR ADOPTION Enclosed are a new set of amendments for your tax code; these are the 1999 Tax Code Amendments. Final approval of the amendments occurred ata meeting of the Municipal Tax Code Commission which was held on the last day of the League Conference. These amendments are a combination of changes suggested by the Unified Audit Committee, a group of city auditors plus the Department of Revenue, which meets regularly to review tax code issues and the Arizona Tax Research Association. All of the amendments are designed to reflect recent changes in state law to make compliance with the tax code easier for businesses. We urge your adoption of the amendments by the end of November, so that we may have a consistent effective date of January 1, 2000. To assist in the adoption, we have tailored the ordinance to the current provisions of your Code including numbering. The amendment is designed to be adopted by reference and an adopting ordinance and resolution are also enclosed. A summary of the amendment provisions has also been included as a part of this package. We hope this document will assist in explaining the amendment to your mayor and council. Following adoption of the amendment, please send us a copy of your adopting ordinance and we will in turn make the conforming changes to your tax code and send the revisions to you. Please let Byron Smith of our staff or me know if there is anything we can do to assist you in this effort. We thank you for your assistance in this effort. RESOLUTION NO. (R)99- 106 A RESOLUTION OF THE TOWN OF ORO VALLEY, ARIZONA DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA". BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: That certain document known as "The 1999 Amendments to the Town Tax Code of the Town of Oro Valley, Arizona", three copies of which are on file in the office of the Town Clerk, is declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 3rd day of November, 1999. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: Kathryn E. Cuvelier, CMC, Town Clerk APPROVED AS TO FORM: Dan Dudley, Town Attorney 4 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: David L. Andrews, Finance Director SUBJECT: Public Hearing - ORDINANCE NO. (0)99- 57 RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE AND PROVIDING PENALTIES FOR VIOLATIONS. SUMMARY: All Arizona cities and towns which impose a local sales tax have adopted the Model Cities Tax Code. The Town of Oro Valley has adopted this model and incorporated the model language into the Town's Tax Code. Periodically, the League of Arizona Cities and Towns coordinates proposed statewide tax code amendments to promote uniformity and tax code compliance throughout the State. The item you have before you would incorporate proposed tax code amendments for 1999 into the Town Code. The amendments are a combination of changes suggested by the Unified Audit Committee (statewide group of city auditors and the Arizona Department of Revenue) and the Arizona Tax Research Association. The amendments reflect recent changes in state sales tax law. ANALYSIS: The League has provided a summary of the proposed tax code changes (Exhibit A). The amendments are quite detailed but in summary would affect the following types of businesses/activities: • Purchases made by hospitals and various income producing capital equipment purchases • Exempts rental income derived from incarcerating prisoners from the sales tax • Exempts from the sales tax income derived from alternative fuel vehicles • Various retail sales exemptions These changes will have little, if any, impact on the Town's sales tax base. Staff recommends continuance of this item until the Council's November 17 Regular Session. Such action will allow additional time for public review of the tax code amendments. 0 TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 2 OF 2 ATTACHMENTS: 1. ORDINANCE NO. (0)99- 57 RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE AND PROVIDING PENALTIES AND VIOLATIONS. 2. Exhibit A—Introduction and Summary of 1999 Tax Code Changes 3. Exhibit B —The 1999 Amendments to the Town Tax Code of the Town of Oro Valley, Arizona. RECOMMENDATION: I recommend to continue the adoption of ORDINANCE NO. (0)99- 57 "1999 AMENDMENTS TO THE TOWN TAX CODE OF THE TOWN OF ORO VALLEY, ARIZONA"to the Council's November 17 Regular Session. SUGGESTED MOTION: I move to continue ORDINANCE NO. (0)99- 57 "THE 1999 AMENDMENTS TO THE TOWN TAX (CODE OF THE TOWN OF ORO VALLEY, ARIZONA"to the November 17 Regular Session David L. Andrews Finance Director ,,I..._ I-1 . .' /V Chuck Swe Town Manager ORDINANCE NO (0)99- 57 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1999 AMENDMENTS TO THE TAX CODE OF THE TOWN OF ORO VALLEY" BY REFERENCE; ESTABLISHING AN EFFECTIVE DATE; PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR VIOLATIONS. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: Section 1: That certain document known as "The 1999 Amendments to the Tax Code of the Town of Oro Valley," three copies of which are on file in the office of the town clerk of the Town of Oro Valley, Arizona, which document was made a public record by Resolution No. (R)99- 106 of the Town of Oro Valley, Arizona, is hereby referred to, adopted and made a part hereof as if fully set out in this ordinance. Section 2: Except as provided in Sections 3 and 4 of this ordinance, the provisions of this ordinance and the public record adopted herein are effective from and after December 31, 1999. Section 3: The following provisions of the public record adopted herein are retroactive to January 1, 1999: (a) Subsection (b)(3) of Section 8A-415. (b) Subsection (c)(1)(A) of Section 8A-416 (c) Subsection (b)(1)(A) of Section 8A-417. Section 4: The following provisions of the public record adopted herein are retroactive to May 5, 1999: (a) Subsection (c)(10) of Section 8A-450 (b) Subsection (kk) of Section 8A-465. Section 5: Any person found guilty of violating any provision of these amendments to the tax code shall be guilty of a class one misdemeanor. Each day that a violation continues shall be a separate offense punishable as herein above described. Section 6: If any section, subsection, sentence, clause, phrase or portion of this ordinance or any part of these amendments to the tax code adopted herein by reference is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this day of , 1999. Paul H. Loomis, Mayor ATTEST: Kathryn E. Cuvelier, Town Clerk APPROVED AS TO FORM: Dan Dudley, Town Attorney EXHIBIT A INTRODUCTION AND SUMMARY OF 1999 TAX CODE CHANGES The 1999 amendments to the tax code are the result of approximately eight months of negotiations with the business community. Much in these amendments conforms the Model City Tax Code with State statute. As you will notice in the attached adopting ordinance, three of the sections pertain to construction contracting and agency agreements and have a retroactive effective date of January 1, 1999. Two other sections, pertaining to the sale of alternative fuel vehicles, have a retroactive effective date to May 5, 1999. The changes to the tax code proposed in the 1998 amendments were all approved by the Municipal Tax Code Commission on September 10, 1999. The technical and conforming amendments were submitted by the League on behalf of the Unified Audit Committee composed of city tax officials and the Department of Revenue. Although a few of the amendments are a direct result of the preemptive state legislation,a significant part of these changes resulted from comments or suggestions by business representatives on desired amendments to the tax code. The enclosed amendment tailors the approved changes to your current tax code. Following adoption by your city or town and notification to the League,we will integrate the amendment into your tax code and mail the amended pages. The effective date of most of the amendments is January 1, 2000 which means that we are urging adoption before December 1, 1999. Tax code changes do not go into effect until 30 days after passage. Although there are differing opinions on whether a public hearing is required,we recommend that a public hearing be held by the city or town council prior to adoption of the amendment. Under A.R.S.§42-6054, notice of the hearing must be published at least once in a newspaper of general circulation in the city or town at least fifteen days before the hearing. The hearing can be held in conjunction with a regular or special council meeting. If you desire assistance with the public hearing or with explanation of the amendments to the city/town council, this can be arranged by calling the League office. This amendment has been prepared as a public record to allow adoption by reference. The resolution declaring the amendment as a public record should be adopted prior to adoption of the ordinance. Both,however,can be accomplished at the same meeting. Publication of the adopting ordinance should follow adoption. Under the adoption by reference procedure, publication of the full text of the amendment is not required. Following is a section by section summary of each change to the code. There are several amendments to the code that pertain to local or model options, and these are highlighted by an asterisk (*). These particular amendments may or may not affect your local tax code. As always, questions on the tax code or these amendments can be directed to the League. We, in turn, will call upon knowledgeable tax officials from several cities and towns if your question involves an issue beyond our general expertise. Sec. -110. Definitions: Income-producing capital equipment. 1. Expands the definition of income-producing capital equipment to include the purchase and installation of agricultural pollution control equipment,environmental control machinery and equipment,property used for environmental remediation activities, cleanroom contracting activities, egg production facilities and equipment purchased to comply with a recent Federal Communication Commission (FCC) mandate. 2. Expands the exemptions to include parts used in operating pipes and valves. 3. Expands the exemptions for liquid, solid or gaseous chemicals to include those used in printing. "Printing" is defined as a commercial printing operation and includes job printing, engraving, embossing, copying and bookbinding. 4. Amends the income-producing capital equipment exemption to include all railroad rolling stock and signaling equipment. 5. Amends the definition of expendable materials. Sec. -415. Construction contracting: construction contractors. Sec. -416 Construction contracting: speculative builders. Sec. -417. Construction contracting: owner-builders who are not speculative builders. Sec. -418 (RESERVED) .. • • . • • • • • • • •• • • • . 1. Adds a deduction under the construction contracting classifications for the purchase of machinery, equipment or other personal property that is exempt under the retail classification and adds a new regulation consistent with the state change that eliminates the need to enter into an agency agreement with a construction contractor to avoid paying privilege tax on tangible personal property included in a construction contract. The change impacts purchases made by hospitals and various income producing capital equipment purchases. (This change will be retroactive to January 1, 1999.) 2. Provides a deduction from the construction contracting, speculative builder and owner-builder sections for proceeds from the installation, assembly, repair or maintenance of income-producing capital equipment that does not become permanently attached. 3. Under prescribed conditions, exempts construction contracts for agricultural pollution control equipment, environmental control machinery and equipment, environmental remediation activities, cleanrooms and egg production facilities. 4. Clarifies and simplifies the deductions and tax credits which apply to owner-builders and speculative builders by moving them from Section -418 to Sections-416 and -417 respectively. Sec. -444. Hotels. Sec. -445. Rental, leasing, and licensing for use of real property. Adds a deduction for gross receipts derived from incarcerating or detaining inmates. The cities are required by state law to make this change. Sec. -450. Rental, leasing, and licensing for use of tangible personal property. Exempts from tax the rental,leasing and licensing of alternative fuel vehicles. The cities are required by state law to make this change. Sec. -460. Retail sales: measure of tax; burden of proof; exclusions. Clarifies that the sale of a telephone calling card is taxable under the retail classification and exempt from tax under the telecommunications classification. 2 Sec. -465. Retail sales: exemptions. 1. Makes a technical correction,for those cities/towns that tax food, to clarify a reference to the United States Code. 2. Exempts from tax the sale of food to a nonprofit charitable organization that has qualified under section 501(c)(3) of the Internal Revenue Code and that regularly serves meals to the needy and indigent on a continuing basis at no cost. 3. Exempts from tax gas used to fuel compressor equipment used to pressurize the gas pipeline. 4. Exempts from tax the sale of alternative fuel vehicles. The cities are required by state law to make this change. Sec. -470.Telecommunication services. Conforming change on pre-paid calling cards. See Section -460. Sec. -475. Transporting for hire. Exempts from tax the transporting of persons or goods on short-line railroads. Sec. -575. Judicial review. Places the burden of proof, when determining a factual issue relevant to the taxpayer's tax liability, on the city/town. *Sec. -660. Use tax: exemptions. See Section -465 for an explanation of the exemptions. Not all cities and towns will have this change. Reg. -100.4. Out-of-City/Out-of-State Sales: Sales to fntlians NATIVE AMERICANS. Replaces the term"Indian"with "Native American". 3 EXHIBIT B 1999 AMENDMENTS TO THE TAX CODE OF THE TOWN OF ORO VALLEY Section 1. Section 8A-110 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-110. Definitions: Income-producing capital equipment. Sec. 8A-110. Definitions: Income-producing capital equipment (a) The following tangible personal property, other than items excluded in subsection(d)below,shall be deemed "income-producing capital equipment"for the purposes of this Chapter: (1) machinery or equipment used directly in manufacturing,processing,fabricating,job printing, refining or metallurgical operations. The terms"manufacturing", "processing","fabricating", "job printing", "refining", and "metallurgical" as used in this paragraph refer to and include those operations commonly understood within their ordinary meaning. "Metallurgical operations" includes leaching, milling, precipitating, smelting and refining. (2) mining machinery, or equipment, used directly in the process of extracting ores or minerals from the earth for commercial purposes, including equipment required to prepare the materials for extraction and handling, loading or transporting such extracted material to the surface. "Mining"includes underground,surface and open pit operations for extracting ores and minerals. (3) tangible personal property, sold to persons engaged in business classified under the telecommunications classification, consisting of central office switching equipment; switchboards;private branch exchange equipment;microwave radio equipment,and carrier equipment including optical fiber, coaxial cable, and other transmission media which are components of carrier systems. (4) machinery, equipment, or transmission lines used directly in producing or transmitting electrical power, but not including distribution. Transformers and control equipment used at transmission substation sites constitute equipment used in producing or transmitting electrical power. (5) pipes or valves four inches(4")in diameter or larger AND RELATED EQUIPMENT, used to transport oil,natural gas, artificial gas,water,or coal slurry. FOR THE PURPOSE OF THIS SECTION, RELATED EQUIPMENT INCLUDES: COMPRESSOR UNITS, REGULATORS, MACHINERY AND EQUIPMENT,FITTINGS,SEALS AND ANY OTHER PARTS THAT ARE USED IN OPERATING THE PIPES OR VALVES. (6) aircraft, navigational and communication instruments, and other accessories and related equipment sold to: (A) a person holding a federal certificate of public convenience and necessity or foreign air carrier permit for air transportation for use as or in conjunction with or becoming a part of aircraft to be used to transport persons, property or united states mail in intrastate, interstate or foreign commerce. (B) any foreign government for use by such government outside of this State. (C) persons who are not residents of this State and who will not use such property in this State other than in removing such property from this State. This subdivision also applies to corporations that are not incorporated in this State, regardless of maintaining a place of business in this State, if the principal corporate office is located outside this State and the property will not be used in this State other than in removing the property from this State. (7) machinery, tools, equipment and related supplies used or consumed directly in repairing, remodeling or maintaining aircraft,aircraft engines or aircraft component parts by or on behalf of a certificated or licensed carrier of persons or property. (8) railroad rolling stock, rails, ties and signal control equipment used directly to transport persons or property ' . ' - -• - '. . ' . (9) machinery or equipment used directly to drill for oil or gas or used directly in the process of extracting oil or gas from the earth for commercial purposes. (10) buses or other urban mass transit vehicles which are used directly to transport persons or 1 property for hire or pursuant to a governmentally adopted and controlled urban mass transportation program and which are sold to bus companies holding a federal certificate of convenience and necessity or operated by a city,town or other governmental entity or by any person contracting with such governmental entity as part of a governmentally adopted and controlled program to provide urban mass transportation. (11) metering, monitoring, receiving, and transmitting equipment acquired by persons engaged in the business of providing utility services or telecommunications services; but only to the extent that such equipment is to be used by the customers of such persons and such persons separately charge or bill their customers for use of such equipment. (12) groundwater measuring devices required under A.R.S. §45-604. (13) machinery or equipment used in research and development. In this paragraph, "research and development"means basic and applied research in the sciences and engineering, and designing,developing or testing prototypes, processes or new products, including research and development of computer software that is embedded in or an integral part of the prototype or new product or that is required for machinery or equipment otherwise exempt under this section to function effectively. Research and development do not include manufacturing quality control, routine consumer product testing, market research, sales promotion, sales service, research in social sciences or psychology, computer software research that is not included in the definition of research and development, or other nontechnological activities or technical services. (14) (Reserved) (15) Included in income producing capital equipment are liquid,solid or gaseous chemicals used in manufacturing, processing, fabricating, mining, refining, metallurgical operations er, research and development OR JOB PRINTING, if using or consuming the chemicals,alone or as part of an integrated system of chemicals, involving direct contact with the materials from which the product is produced for the purpose of causing or permitting a chemical or physical change to occur in the materials as part of the production process. This subsection does not include chemicals that are used or consumed in activities such as packaging, storage or transportation but does not affect any deduction for such chemicals that is otherwise provided by this Code. Chemicals meeting the requirements of this subsection are deemed not to be expendable under subsection (d) of this section. (16) cleanrooms that are used for manufacturing, processing, fabrication or research and development, as defined in paragraph (13) of this subsection, of semiconductor products. For purposes of this paragraph, "cleanroom" means all property that comprises or creates an environment where humidity, temperature, particulate matter and contamination are precisely controlled within specified parameters, without regard to whether the property is actually contained within that environment or whether any of the property is affixed to or incorporated into real property. Cleanroom: (A) includes the integrated systems,fixtures, piping, movable partitions, lighting and all property that is necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity or other environmental conditions or manufacturing tolerances, as well as the production machinery and equipment operating in conjunction with the cleanroom environment. (B) does not include the building or other permanent, nonremovable component of the building that houses the cleanroom environment. (17) machinery and equipment that are purchased by or on behalf of the owners of a soundstage complex and primarily used for motion picture, multimedia or interactive video production in the complex. This paragraph applies only if the initial construction of the soundstage complex begins after June 30, 1996 and before January 1, 2002 and the machinery and equipment are purchased before the expiration of five years after the start of initial construction. For purposes of this paragraph: (A) "motion picture, multimedia or interactive video production" includes products for theatrical and television release, educational presentations, electronic retailing, documentaries, music videos, industrial films, cd-rom, video game production, commercial advertising and television episode production and other genres that are introduced through developing technology. 2 (B) "soundstage complex" means a facility of multiple stages including production offices, construction shops and related areas, prop and costume shops, storage areas, parking for production vehicles and areas that are leased to businesses that complement the production needs and orientation of the overall facility. (18) tangible personal property that is used by either of the following to receive, store, convert, produce, generate, decode, encode, control or transmit telecommunications information: (A) any direct broadcast satellite television or data transmission service that operates pursuant to 47 Code of Federal Regulations parts 25 and 100. (B) any satellite television or data transmission facility, if both of the following conditions are met: (i) over two-thirds of the transmissions, measured in megabytes, transmitted by the facility during the test period were transmitted to or on behalf of one or more direct broadcast satellite television or data transmission services that operate pursuant to 47 Code of Federal Regulations parts 25 and 100. (ii) over two-thirds of the transmissions, measured in megabytes, transmitted by or on behalf of those direct broadcast television or data transmission services during the test period were transmitted by the facility to or on behalf of those services. For purposes of subdivision (B) of this paragraph, "test period" means the three hundred sixty-five day period beginning on the later of the date on which the tangible personal property is purchased or the date on which the direct broadcast satellite television or data transmission service first transmits information to its customers. (19) MACHINERY AND EQUIPMENT THAT IS USED DIRECTLY IN THE FEEDING OF POULTRY, THE ENVIRONMENTAL CONTROL OF HOUSING FOR POULTRY, THE MOVEMENT OF EGGS WITHIN A PRODUCTION AND PACKAGING FACILITY OR THE SORTING OR COOLING OF EGGS.THIS EXEMPTION DOES NOT APPLY TO VEHICLES USED FOR TRANSPORTING EGGS. (20) MACHINERY OR EQUIPMENT, INCLUDING RELATED STRUCTURAL COMPONENTS, THAT IS EMPLOYED IN CONNECTION WITH MANUFACTURING, PROCESSING, FABRICATING, JOB PRINTING, REFINING, MINING, NATURAL GAS PIPELINES, METALLURGICAL OPERATIONS, TELECOMMUNICATIONS, PRODUCING OR TRANSMITTING ELECTRICITY OR RESEARCH AND DEVELOPMENT THAT IS USED DIRECTLY TO MEET OR EXCEED RULES OR REGULATIONS ADOPTED BY THE FEDERAL ENERGY REGULATORY COMMISSION, THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, THE UNITED STATES NUCLEAR REGULATORY COMMISSION, THE ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY OR A POLITICAL SUBDIVISION OF THIS STATE TO PREVENT, MONITOR, CONTROL OR REDUCE LAND, WATER OR AIR POLLUTION. (21) MACHINERY OR EQUIPMENT THAT ENABLES A TELEVISION STATION TO ORIGINATE AND BROADCAST OR TO RECEIVE AND BROADCAST DIGITAL TELEVISION SIGNALS AND THAT WAS PURCHASED TO FACILITATE COMPLIANCE WITH THE TELECOMMUNICATIONS ACT OF 1996(P.L.104-104;110 STAT.56;47 UNITED STATES CODE SECTION 336)AND THE FEDERAL COMMUNICATIONS COMMISSION ORDER ISSUED APRIL 21, 1997, 47 CODE OF FEDERAL REGULATIONS PART 73. THIS PARAGRAPH DOES NOT EXEMPT ANY OF THE FOLLOWING: (A) REPAIR OR REPLACEMENT PARTS PURCHASED FOR THE MACHINERY OR EQUIPMENT DESCRIBED IN THIS PARAGRAPH. (B) MACHINERY OR EQUIPMENT PURCHASED TO REPLACE MACHINERY OR EQUIPMENT FOR WHICH AN EXEMPTION WAS PREVIOUSLY CLAIMED AND TAKEN UNDER THIS PARAGRAPH. (C) ANY MACHINERY OR EQUIPMENT PURCHASED AFTER THE TELEVISION STATION HAS CEASED ANALOG BROADCASTING, OR PURCHASED AFTER NOVEMBER 1, 2009, WHICHEVER OCCURS FIRST. (b) The term "income-producing capital equipment" shall further include ancillary machinery and equipment used for the treatment of waste products created by the business activities which are 3 allowed to purchase "income-producing capital equipment" defined in subsection (a) above. (c) The term "income-producing capital equipment" shall further include repair and replacement parts, other than the items in subsection (d) below, where the property is acquired to become an integral part of another item itemized in subsections (a) or (b)above. (d) The tangible personal property defined as income-producing capital equipment in this Section shall not include: (1) expendable materials. FOR PURPOSES OF THIS PARAGRAPH, EXPENDABLE MATERIALS DO NOT INCLUDE ANY OF THE CATEGORIES OF TANGIBLE PERSONAL PROPERTY SPECIFIED IN SUBSECTIONS (a), (b) OR (c) OF THIS SECTION REGARDLESS OF THE COST OR USEFUL LIFE OF THAT PROPERTY. (2) janitorial equipment and hand tools. (3) office equipment, furniture, and supplies. (4) tangible personal property used in selling or distributing activities. (5) motor vehicles required to be licensed by the State of Arizona, except buses or other urban mass transit vehicles specifically exempted pursuant to subsection (a)(10) above without regard to the use of such motor vehicles. (6) shops, buildings, docks, depots, and all other materials of whatever kind or character not specifically included as exempt. (7) motors and pumps used in drip irrigation systems. (e) For the purposes of this Section: (1) "aircraft" includes: (A) an airplane flight simulator that is approved by the Federal Aviation Administration for use as a Phase II or higher flight simulator under Appendix H, 14 Code of Federal Regulations Part 121. (B) tangible personal property that is permanently affixed or attached as a component part of an aircraft that is owned or operated by a certificated or licensed carrier of persons or property. (2) "other accessories and related equipment"includes aircraft accessories and equipment such as ground service equipment that physically contact aircraft at some point during the overall carrier operation. 4 Section 2. Section 8A-415 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-415. Construction contracting: construction contractors. (a) The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business upon every construction contractor engaging or continuing in the business activity of construction contracting within the Town. (1) However, gross income from construction contracting shall not include charges related to groundwater measuring devices required by A.R.S. Section 45-604. (2) (Reserved) (3) gross income from construction contracting shall not include gross income from the sale of manufactured buildings taxable under Section 8A-427. (b) Deductions AND EXEMPTIONS. (1) Gross income derived from acting as a"subcontractor"shall be exempt from the tax imposed by this Section. (2) All construction contracting gross income subject to the tax and not deductible herein shall be allowed a deduction of thirty-five percent(35%). (3) THE GROSS PROCEEDS OF SALES OR GROSS INCOME ATTRIBUTABLE TO THE PURCHASE OF MACHINERY, EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY THAT IS EXEMPT FROM OR DEDUCTIBLE FROM PRIVILEGE OR USE TAX UNDER: (A) SECTION 8A-465, SUBSECTIONS (g)AND (p) (B) (RESERVED) SHALL BE EXEMPT OR DEDUCTIBLE, RESPECTIVELY, FROM THE TAX IMPOSED BY THIS SECTION. (4) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM A CONTRACT ENTERED INTO FOR THE INSTALLATION, ASSEMBLY, REPAIR OR MAINTENANCE OF INCOME-PRODUCING CAPITAL EQUIPMENT, AS DEFINED IN SECTION 8A-110, THAT DOES NOT BECOME A PERMANENT ATTACHMENT TO A BUILDING, HIGHWAY, ROAD, RAILROAD, EXCAVATION OR MANUFACTURED BUILDING OR OTHER STRUCTURE, PROJECT, DEVELOPMENT OR IMPROVEMENT SHALL BE DEDUCTED FROM THE TAX IMPOSED BY THIS SECTION. IF THE OWNERSHIP OF THE REALTY IS SEPARATE FROM THE OWNERSHIP OF THE INCOME-PRODUCING CAPITAL EQUIPMENT, THE DETERMINATION AS TO PERMANENT ATTACHMENT SHALL BE MADE AS IF THE OWNERSHIP WAS THE SAME. THE DEDUCTION PROVIDED IN THIS PARAGRAPH DOES NOT INCLUDE GROSS PROCEEDS OF SALES OR GROSS INCOME FROM THAT PORTION OF ANY CONTRACTING ACTIVITY WHICH CONSISTS OF THE DEVELOPMENT OF, OR MODIFICATION TO,REAL PROPERTY IN ORDER TO FACILITATE THE INSTALLATION, ASSEMBLY, REPAIR, MAINTENANCE OR REMOVAL OF THE INCOME-PRODUCING CAPITAL EQUIPMENT. FOR PURPOSES OF THIS PARAGRAPH, "PERMANENT ATTACHMENT' MEANS AT LEAST ONE OF THE FOLLOWING: (A) TO BE INCORPORATED INTO REAL PROPERTY. (B) TO BECOME SO AFFIXED TO REAL PROPERTY THAT IT BECOMES PART OF THE REAL PROPERTY. (C) TO BE SO ATTACHED TO REAL PROPERTY THAT REMOVAL WOULD CAUSE SUBSTANTIAL DAMAGE TO THE REAL PROPERTY FROM WHICH IT IS REMOVED. (5) THE GROSS PROCEEDS OF SALES OR GROSS INCOME RECEIVED FROM A CONTRACT FOR THE CONSTRUCTION OF AN ENVIRONMENTALLY CONTROLLED FACILITY FOR THE RAISING OF POULTRY FOR THE PRODUCTION OF EGGS AND THE SORTING, OR COOLING AND PACKAGING OF EGGS SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (6) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM THE INSTALLATION,ASSEMBLY,REPAIR OR MAINTENANCE OF CLEAN ROOMS THAT ARE 5 DEDUCTED FROM THE TAX BASE OF THE RETAIL CLASSIFICATION PURSUANT TO SECTION 8A-465, SUBSECTION (g) SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (7) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM A CONTRACT ENTERED INTO WITH A PERSON WHO IS ENGAGED IN THE COMMERCIAL PRODUCTION OF LIVESTOCK, LIVESTOCK PRODUCTS OR AGRICULTURAL, HORTICULTURAL,VITICULTURAL OR FLORICULTURAL CROPS OR PRODUCTS IN THIS STATE FOR THE CONSTRUCTION, ALTERATION, REPAIR, IMPROVEMENT, MOVEMENT, WRECKING OR DEMOLITION OR ADDITION TO OR SUBTRACTION FROM ANY BUILDING, HIGHWAY, ROAD, EXCAVATION, MANUFACTURED BUILDING OR OTHER STRUCTURE,PROJECT,DEVELOPMENT OR IMPROVEMENT USED DIRECTLY AND PRIMARILY TO PREVENT,MONITOR,CONTROL OR REDUCE AIR, WATER OR LAND POLLUTION SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (c) "Subcontractor" means a construction contractor performing work for either: (1) a construction contractor who has provided the subcontractor with a written declaration that he is liable for the tax for the project and has provided the subcontractor his Town Privilege License number. (2) an owner-builder who has provided the subcontractor with a written declaration that: (A) the owner-builder is improving the property for sale; and (B) the owner-builder is liable for the tax for such construction contracting activity; and (C) the owner-builder has provided the contractor his Town Privilege License number. (3) a person selling new manufactured buildings who has provided the subcontractor with a written declaration that he is liable for the tax for the site preparation and set-up; and provided the subcontractor his Town Privilege License number. Subcontractor also includes a construction contractor performing work for another subcontractor as defined above. Section 3. Section 8A-416 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-416 Construction contracting: speculative builders. (a) The tax shall be equal to two percent(2%)of the gross income from the business activity upon every person engaging or continuing in business as a speculative builder within the Town. (1) The gross income of a speculative builder considered taxable shall include the total selling price from the sale of improved real property at the time of closing of escrow or transfer of title. (2) "Improved Real Property" means any real property: (A) upon which a structure has been constructed; or (B) where improvements have been made to land containing no structure (such as paving or landscaping); or (C) which has been reconstructed as provided by Regulation; or (D) where water, power, and streets have been constructed to the property line. (3) "Sale of Improved Real Property"includes any form of transaction,whether characterized as a lease or otherwise, which in substance is a transfer of title of, or equitable ownership in, improved real property and includes any lease of the property for a term of thirty(30)years or more (with all options for renewal being included as a part of the term). In the case of multiple unit projects, "sale" refers to the sale of the entire project or to the sale of any individual parcel or unit. (4) "Partially Improved Residential Real Property,"as used in this Section, means any improved real property, as defined in subsection (a)(2) above, being developed for sale to individual homeowners,where the construction of the residence upon such property is not substantially complete at the time of the sale. 6 (b) Exclusions. (1) In cases involving reconstruction contracting,the speculative builder may exclude from gross income the prior value allowed for reconstruction contracting in determining his taxable gross income, as provided by Regulation. (2) Neither the cost nor the fair market value of the land which constitutes part of the improved real property sold may be excluded or deducted from gross income subject to the tax imposed by this Section. (3) (Reserved) (4) A speculative builder may exclude gross income from the sale of partially improved residential real property as defined in (a)(4) above to another speculative builder only if all of the following conditions are satisfied: (A) The speculative builder purchasing the partially improved residential real property has a valid Town privilege license for construction contracting as a speculative builder; and (B) At the time of the transaction, the purchaser provides the seller with a properly completed written declaration that the purchaser assumes liability for and will pay all privilege taxes which would otherwise be due the Town at the time of sale of the partially improved residential real property; and (C) The seller also: (i) maintains proper records of such transactions in a manner similar to the requirements provided in this chapter relating to sales for resale; and (ii) retains a copy of the written declaration provided by the buyer for the transaction; and (iii) is properly licensed with the Town as a speculative builder and provides the Town with the written declaration attached to the Town privilege tax return where he claims the exclusion. (c) Tax liability for speculative builders occurs at close of escrow or transfer of title, whichever occurs earlier, and is subject to the FOLLOWING provisions , relating to EXEMPTIONS, deductions and tax credits- : (1) EXEMPTIONS. (A) THE GROSS PROCEEDS OF SALES OR GROSS INCOME ATTRIBUTABLE TO THE PURCHASE OF MACHINERY, EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY THAT IS EXEMPT FROM OR DEDUCTIBLE FROM PRIVILEGE OR USE TAX UNDER: (i) SECTION 8A-465, SUBSECTIONS (g)AND (p) (ii) (RESERVED) SHALL BE EXEMPT OR DEDUCTIBLE, RESPECTIVELY, FROM THE TAX IMPOSED BY THIS SECTION. (B) THE GROSS PROCEEDS OF SALES OR GROSS INCOME RECEIVED FROM A CONTRACT FOR THE CONSTRUCTION OF AN ENVIRONMENTALLY CONTROLLED FACILITY FOR THE RAISING OF POULTRY FOR THE PRODUCTION OF EGGS AND THE SORTING,OR COOLING AND PACKAGING OF EGGS SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (C) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM THE INSTALLATION,ASSEMBLY,REPAIR OR MAINTENANCE OF CLEAN ROOMS THAT ARE DEDUCTED FROM THE TAX BASE OF THE RETAIL CLASSIFICATION PURSUANT TO SECTION 8A-465,SUBSECTION(g)SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (D) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM A CONTRACT ENTERED INTO WITH A PERSON WHO IS ENGAGED IN THE COMMERCIAL PRODUCTION OF LIVESTOCK,LIVESTOCK PRODUCTS OR AGRICULTURAL, HORTICULTURAL, VITICULTURAL OR FLORICULTURAL CROPS OR PRODUCTS IN THIS STATE FOR THE CONSTRUCTION, 7 ALTERATION, REPAIR, IMPROVEMENT, MOVEMENT, WRECKING OR DEMOLITION OR ADDITION TO OR SUBTRACTION FROM ANY BUILDING, HIGHWAY, ROAD, EXCAVATION, MANUFACTURED BUILDING OR OTHER STRUCTURE,PROJECT,DEVELOPMENT OR IMPROVEMENT USED DIRECTLY AND PRIMARILY TO PREVENT,MONITOR,CONTROL OR REDUCE AIR,WATER OR LAND POLLUTION SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (2) DEDUCTIONS. (A) ALL AMOUNTS SUBJECT TO THE TAX SHALL BE ALLOWED A DEDUCTION IN THE AMOUNT OF THIRTY-FIVE PERCENT(35%). (B) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM THE INSTALLATION, ASSEMBLY, REPAIR OR MAINTENANCE OF INCOME-PRODUCING CAPITAL EQUIPMENT,AS DEFINED IN SECTION 8A-110, THAT DOES NOT BECOME A PERMANENT ATTACHMENT TO A BUILDING, HIGHWAY, ROAD, RAILROAD, EXCAVATION OR MANUFACTURED BUILDING OR OTHER STRUCTURE, PROJECT, DEVELOPMENT OR IMPROVEMENT SHALL BE DEDUCTED FROM THE TAX IMPOSED BY THIS SECTION. IF THE OWNERSHIP OF THE REALTY IS SEPARATE FROM THE OWNERSHIP OF THE INCOME-PRODUCING CAPITAL EQUIPMENT, THE DETERMINATION AS TO PERMANENT ATTACHMENT SHALL BE MADE AS IF THE OWNERSHIP WAS THE SAME. THE DEDUCTION PROVIDED IN THIS PARAGRAPH DOES NOT INCLUDE GROSS PROCEEDS OF SALES OR GROSS INCOME FROM THAT PORTION OF ANY CONTRACTING ACTIVITY WHICH CONSISTS OF THE DEVELOPMENT OF, OR MODIFICATION TO, REAL PROPERTY IN ORDER TO FACILITATE THE INSTALLATION, ASSEMBLY, REPAIR, MAINTENANCE OR REMOVAL OF THE INCOME-PRODUCING CAPITAL EQUIPMENT. FOR PURPOSES OF THIS PARAGRAPH, "PERMANENT ATTACHMENT'MEANS AT LEAST ONE OF THE FOLLOWING: (i) TO BE INCORPORATED INTO REAL PROPERTY. (ii) TO BECOME SO AFFIXED TO REAL PROPERTY THAT IT BECOMES PART OF THE REAL PROPERTY. (iii) TO BE SO ATTACHED TO REAL PROPERTY THAT REMOVAL WOULD CAUSE SUBSTANTIAL DAMAGE TO THE REAL PROPERTY FROM WHICH IT IS REMOVED. (3) TAX CREDITS. THE FOLLOWING TAX CREDITS ARE AVAILABLE TO OWNER-BUILDERS OR SPECULATIVE BUILDERS, NOT TO EXCEED THE TAX LIABILITY AGAINST WHICH SUCH CREDITS APPLY, PROVIDED SUCH CREDITS ARE DOCUMENTED TO THE SATISFACTION OF THE TAX COLLECTOR: (A) A TAX CREDIT EQUAL TO THE AMOUNT OF TOWN PRIVILEGE OR USE TAX, OR THE EQUIVALENT EXCISE TAX, PAID DIRECTLY TO A TAXING JURISDICTION ORAS ASEPARATELY ITEMIZED CHARGE PAID DIRECTLY TO THE VENDOR WITH RESPECT TO THE TANGIBLE PERSONAL PROPERTY INCORPORATED INTO THE SAID STRUCTURE OR IMPROVEMENT TO REAL PROPERTY UNDERTAKEN BY THE OWNER-BUILDER OR SPECULATIVE BUILDER. (B) A TAX CREDIT EQUAL TO THE AMOUNT OF PRIVILEGE TAXES PAID TO THIS TOWN, OR CHARGED SEPARATELY TO THE SPECULATIVE BUILDER, BY A CONSTRUCTION CONTRACTOR,ON THE GROSS INCOME DERIVED BY SAID PERSON FROM THE CONSTRUCTION OF ANY IMPROVEMENT TO THE REAL PROPERTY. (C) NO CREDITS PROVIDED HEREIN MAY BE CLAIMED UNTIL SUCH TIME THAT THE GROSS INCOME AGAINST WHICH SAID CREDITS APPLY IS REPORTED. 8 Section 4. Section 8A-417 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-417. Construction contracting: owner-builders who are not speculative builders. (a) At the expiration of twenty-four (24) months after improvement to the property is substantially complete, the tax liability for an owner-builder who is not a speculative builder shall be at an amount equal to two percent(2%) of: (1) the gross income from the activity of construction contracting upon the real property in question which was realized by those construction contractors to whom the owner-builder provided written declaration that they were not responsible for the taxes as prescribed in Subsection 8A-415(c)(2); and (2) the purchase of tangible personal property for incorporation into any improvement to real property, computed on the sales price. (b) The tax liability of this Section is subject to the FOLLOWING provisions , relating to EXEMPTIONS, deductions and tax credits- : (1) EXEMPTIONS. (A) THE GROSS PROCEEDS OF SALES OR GROSS INCOME ATTRIBUTABLE TO THE PURCHASE OF MACHINERY, EQUIPMENT OR OTHER TANGIBLE PERSONAL PROPERTY THAT IS EXEMPT FROM OR DEDUCTIBLE FROM PRIVILEGE OR USE TAX UNDER: (i) SECTION 8A-465, SUBSECTIONS (g)AND (p) (ii) (RESERVED) SHALL BE EXEMPT OR DEDUCTIBLE, RESPECTIVELY, FROM THE TAX IMPOSED BY THIS SECTION. (B) THE GROSS PROCEEDS OF SALES OR GROSS INCOME RECEIVED FROM A CONTRACT FOR THE CONSTRUCTION OF AN ENVIRONMENTALLY CONTROLLED FACILITY FOR THE RAISING OF POULTRY FOR THE PRODUCTION OF EGGS AND THE SORTING, OR COOLING AND PACKAGING OF EGGS SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (C) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM THE INSTALLATION,ASSEMBLY,REPAIR OR MAINTENANCE OF CLEAN ROOMS THAT ARE DEDUCTED FROM THE TAX BASE OF THE RETAIL CLASSIFICATION PURSUANT TO SECTION 8A-465,SUBSECTION(g)SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (D) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM A CONTRACT ENTERED INTO WITH A PERSON WHO IS ENGAGED IN THE COMMERCIAL PRODUCTION OF LIVESTOCK,LIVESTOCK PRODUCTS OR AGRICULTURAL, HORTICULTURAL, VITICULTURAL OR FLORICULTURAL CROPS OR PRODUCTS IN THIS STATE FOR THE CONSTRUCTION, ALTERATION, REPAIR, IMPROVEMENT, MOVEMENT, WRECKING OR DEMOLITION OR ADDITION TO OR SUBTRACTION FROM ANY BUILDING, HIGHWAY, ROAD, EXCAVATION, MANUFACTURED BUILDING OR OTHER STRUCTURE,PROJECT,DEVELOPMENT OR IMPROVEMENT USED DIRECTLY AND PRIMARILY TO PREVENT,MONITOR,CONTROL OR REDUCE AIR,WATER OR LAND POLLUTION SHALL BE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. (2) DEDUCTIONS. (A) ALL AMOUNTS SUBJECT TO THE TAX SHALL BE ALLOWED A DEDUCTION IN THE AMOUNT OF THIRTY-FIVE PERCENT(35%). (B) THE GROSS PROCEEDS OF SALES OR GROSS INCOME THAT IS DERIVED FROM THE INSTALLATION, ASSEMBLY, REPAIR OR MAINTENANCE OF INCOME-PRODUCING CAPITAL EQUIPMENT,AS DEFINED IN SECTION 8A-110, THAT DOES NOT BECOME A PERMANENT ATTACHMENT TO A BUILDING, HIGHWAY, ROAD, RAILROAD, EXCAVATION OR MANUFACTURED BUILDING 9 OR OTHER STRUCTURE, PROJECT, DEVELOPMENT OR IMPROVEMENT SHALL BE DEDUCTED FROM THE TAX IMPOSED BY THIS SECTION. IF THE OWNERSHIP OF THE REALTY IS SEPARATE FROM THE OWNERSHIP OF THE INCOME-PRODUCING CAPITAL EQUIPMENT, THE DETERMINATION AS TO PERMANENT ATTACHMENT SHALL BE MADE AS IF THE OWNERSHIP WAS THE SAME. THE DEDUCTION PROVIDED IN THIS PARAGRAPH DOES NOT INCLUDE GROSS PROCEEDS OF SALES OR GROSS INCOME FROM THAT PORTION OF ANY CONTRACTING ACTIVITY WHICH CONSISTS OF THE DEVELOPMENT OF, OR MODIFICATION TO, REAL PROPERTY IN ORDER TO FACILITATE THE INSTALLATION, ASSEMBLY, REPAIR, MAINTENANCE OR REMOVAL OF THE INCOME-PRODUCING CAPITAL EQUIPMENT. FOR PURPOSES OF THIS PARAGRAPH, "PERMANENT ATTACHMENT' MEANS AT LEAST ONE OF THE FOLLOWING: (i) TO BE INCORPORATED INTO REAL PROPERTY. (ii) TO BECOME SO AFFIXED TO REAL PROPERTY THAT IT BECOMES PART OF THE REAL PROPERTY. (iii) TO BE SO ATTACHED TO REAL PROPERTY THAT REMOVAL WOULD CAUSE SUBSTANTIAL DAMAGE TO THE REAL PROPERTY FROM WHICH IT IS REMOVED. (3) TAX CREDITS. THE FOLLOWING TAX CREDITS ARE AVAILABLE TO OWNER-BUILDERS AND SPECULATIVE BUILDERS, NOT TO EXCEED THE TAX LIABILITY AGAINST WHICH SUCH CREDITS APPLY, PROVIDED SUCH CREDITS ARE DOCUMENTED TO THE SATISFACTION OF THE TAX COLLECTOR: (A) A TAX CREDIT EQUAL TO THE AMOUNT OF TOWN PRIVILEGE OR USE TAX, OR THE EQUIVALENT EXCISE TAX, PAID DIRECTLY TO A TAXING JURISDICTION OR ASASEPARATELY ITEMIZED CHARGE PAID DIRECTLY TO THE VENDOR WITH RESPECT TO THE TANGIBLE PERSONAL PROPERTY INCORPORATED INTO THE SAID STRUCTURE OR IMPROVEMENT TO REAL PROPERTY UNDERTAKEN BY THE OWNER-BUILDER OR SPECULATIVE BUILDER. (B) A TAX CREDIT EQUAL TO THE AMOUNT OF PRIVILEGE TAXES PAID TO THIS TOWN, OR CHARGED SEPARATELY TO THE SPECULATIVE BUILDER, BY A CONSTRUCTION CONTRACTOR,ON THE GROSS INCOME DERIVED BY SAID PERSON FROM THE CONSTRUCTION OF ANY IMPROVEMENT TO THE REAL PROPERTY. (C) NO CREDITS PROVIDED HEREIN MAY BE CLAIMED UNTIL SUCH TIME THAT THE GROSS INCOME AGAINST WHICH SAID CREDITS APPLY IS REPORTED. (c) The limitation period for the assessment of taxes imposed by this Section is measured based upon when such liability is reportable, that is, in the reporting period that encompasses the twenty-fifth (25th)month after said unit or project was substantially complete. Interest and penalties,as provided in Section 8A-540, will be based on reportable date. (d) (Reserved) Section 5. Section 8A-418 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-418 (RESERVED) • • '• •. • • '• . • . •• - • •• • • - i• •i i . . • . i i . • •• i . i• i i •• 10 Prelaertr Section 6. Section 8A-444 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-444. Hotels. The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: (a) Person. (b) (Reserved) (c) INCOME DERIVED FROM INCARCERATING OR DETAINING PRISONERS WHO ARE UNDER THE JURISDICTION OF THE UNITED STATES, THIS STATE OR ANY OTHER STATE OR A POLITICAL SUBDIVISION OF THIS STATE OR OF ANY OTHER STATE IN A PRIVATELY OPERATED PRISON,JAIL OR DETENTION FACILITY IS EXEMPT FROM THE TAX IMPOSED BY THIS SECTION. Section 7. Section 8A-445 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-445. Rental, leasing, and licensing for use of real property. (a) The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business activity upon every person engaging or continuing in the business of leasing or renting real property located within the Town for a consideration,to the tenant in actual possession,or the licensing for use of real property to the final licensee located within the Town for a consideration including any improvements, rights, or interest in such property; provided further that: (1) Payments made by the lessee to, or on behalf of, the lessor for property taxes, repairs, or improvements are considered to be part of the taxable gross income. (2) Charges for such items as telecommunications, utilities, pet fees, or maintenance are considered to be part of the taxable gross income. (3) However, if the lessor engages in telecommunication activity, as evidenced by installing individual metering equipment and by billing each tenant based upon actual usage, such activity is taxable under Section 8A-470. (b) If individual utility meters have been installed for each tenant and the lessor separately charges each single tenant for the exact billing from the utility company, such charges are exempt. (c) Charges by a qualifying hospital, qualifying community health center or a qualifying health care organization to patients of such facilities for use of rooms or other real property during the course of 11 their treatment by such facilities are exempt. (d) Charges for joint pole usage by a person engaged in the business of providing or furnishing utility or telecommunication services to another person engaged in the business of providing or furnishing utility or telecommunication services are exempt from the tax imposed by this Section. (e) Exempt from the tax imposed by this Section is gross income derived from the rental, leasing, or licensing for use of real property to a qualifying hospital, qualifying"community health center or a qualifying health care organization,except when the property so rented,leased,or licensed is for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512. (f) A person who has less than three (3) apartments, houses, trailer spaces, or other lodging spaces rented, leased or licensed or available for rent, lease, or license within the State and no units of commercial property for rent, lease, or license within the State, is not deemed to be in the rental business, and is therefore exempt from the tax imposed by this section on such income. However, a person who has one(1)or more units of commercial property is subject to the tax imposed by this section on rental,lease and license income from all such lodging spaces and commercial units of real estate even though said person may have fewer than three (3) lodging spaces. (g) (Reserved) (h) Except as may be provided in another section of this chapter,the tax prescribed by this section shall not include gross income from the rental, leasing or licensing of lodging or lodging space to an individual who resides therein. (i) (Reserved) (j) Exempt from the tax imposed by this Section is gross income derived from the activities taxable under Section 8A-444 of this code. (k) (Reserved) (I) (Reserved) (m) Notwithstanding the other provisions of this section, the tax imposed by this section does not apply to the rental, leasing or licensing for use of commercial property. (n) Notwithstanding the provisions of Section 8A-200(b), the fair market value of one (1)apartment, in an apartment complex provided rent free to an employee of the apartment complex is not subject to the tax imposed by this Section. For an apartment complex with more than fifty (50) units, an additional apartment provided rent free to an employee for every additional fifty (50) units is not subject to the tax imposed by this Section. (o) INCOME DERIVED FROM INCARCERATING OR DETAINING PRISONERS WHO ARE UNDER THE JURISDICTION OF THE UNITED STATES, THIS STATE OR ANY OTHER STATE OR A POLITICAL SUBDIVISION OF THIS STATE OR OF ANY OTHER STATE IN A PRIVATELY OPERATED PRISON,JAIL OR DETENTION FACILITY IS EXEMPT FROM THE TAX IMPOSED BY THIS SECTION. Section 8. Section 8A-450 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-450. Rental, leasing, and licensing for use of tangible personal property. (a) The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business 12 activity upon every person engaging or continuing in the business of leasing, licensing for use, or renting tangible personal property for a consideration, including that which is semi-permanently or permanently installed within the Town as provided by Regulation. (b) Special provisions relating to long-term motor vehicle leases. A lease transaction involving a motor vehicle for a minimum period of twenty-four(24)months shall be considered to have occurred at the location of the motor vehicle dealership,rather than the location of the place of business of the lessor, even if the lessor's interest in the lease and its proceeds are sold,transferred,or otherwise assigned to a lease financing institution; provided further that the city or town where such motor vehicle dealership is located levies a Privilege Tax or an equivalent excise tax upon the transaction. (c) Gross income derived from the following transactions shall be exempt from Privilege Taxes imposed by this Section: (1) rental, leasing, or licensing for use of tangible personal property to persons engaged or continuing in the business of leasing, licensing for use, or rental of such property. (2) rental, leasing,or licensing for use of tangible personal property that is semi-permanently or permanently installed within another city or town that levies an equivalent excise tax on the transaction. (3) rental, leasing, or licensing for use of film, tape, or slides to a theater or other person taxed under Section 8A-410, or to a radio station, television station, or subscription television system. (4) rental, leasing, or licensing for use of the following: (A) prosthetics. (B) income-producing capital equipment. (C) mining and metallurgical supplies. These exemptions include the rental, leasing, or licensing for use of tangible personal property which, if it had been purchased instead of leased,rented,or licensed by the lessee or licensee,would qualify as income-producing capital equipment or mining and metallurgical supplies. (5) rental, leasing, or licensing for use of tangible personal property to a qualifying hospital, qualifying community health center or a qualifying health care organization,except when the property so rented, leased, or licensed is for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C.Section 512 or rental,leasing, or licensing for use of tangible personal property in this State by a nonprofit charitable organization that has qualified under Section 501(c)(3)of the United States Internal Revenue Code and that engages in and uses such property exclusively for training,job placement or rehabilitation programs or testing for mentally or physically handicapped persons. (6) separately billed charges for delivery,installation,repair,and/or maintenance as provided by Regulation. (7) charges for joint pole usage by a person engaged in the business of providing or furnishing utility or telecommunication services to another person engaged in the business of providing or furnishing utility or telecommunication services. (8) the gross income from coin-operated washing, drying, and dry cleaning machines, or from coin-operated car washing machines. This exemption shall not apply to suppliers or distributors renting,leasing,or licensing for use of such equipment to persons engaged in the operation of coin-operated washing, drying, dry cleaning, or car washing establishments. (9) rental, leasing, or licensing of aircraft that would qualify as aircraft acquired for use outside the State, as prescribed by Regulation, if such rental, leasing, or licensing had been a sale. (10) RENTAL, LEASING AND LICENSING FOR USE OF MOTOR VEHICLES THAT USE ALTERNATIVE FUEL AS DEFINED IN A.R.S. SECTION 43-1086 ON OR AFTER MAY 5, 1999. 13 Section 9. Section 8A-460 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-460. Retail sales: measure of tax; burden of proof; exclusions. (a) The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business activity upon every person engaging or continuing in the business of selling tangible personal property at retail. (b) The burden of proving that a sale of tangible personal property is not a taxable retail sale shall be upon the person who made the sale. (c) Exclusions. For the purposes of this Chapter, sales of tangible personal property shall not include: (1) sales of stocks, bonds, options, or other similar materials. (2) sales of lottery tickets or shares pursuant to Article I, Chapter 5, Title 5, Arizona Revised Statutes. (3) sales of platinum, bullion, or monetized bullion, except minted or manufactured coins transferred or acquired primarily for their numismatic value as prescribed by Regulation. (4) gross income derived from the transfer of tangible personal property which is specifically included as the gross income of a business activity upon which another Section of this Article imposes a tax, shall be considered gross income of that business activity, and are not includable as gross income subject to the tax imposed by this Section. (5) sales by professional or personal service occupations where such sales are inconsequential elements of the service provided. (d) (Reserved) (e) When this Town and another Arizona city or town with an equivalent excise tax could claim nexus for taxing a retail sale,the city or town where the permanent business location of the seller at which the order was received shall be deemed to have precedence, and for the purposes of this Chapter such city or town has sole and exclusive right to such tax. (f) The appropriate tax liability for any retail sale where the order is received at a permanent business location of the seller located in this Town or in an Arizona city or town that levies an equivalent excise tax shall be at the tax rate of the city or town of such seller's location. (g) RETAIL SALES OF PREPAID CALLING CARDS OR PREPAID AUTHORIZATION NUMBERS FOR TELECOMMUNICATIONS SERVICES, INCLUDING SALES OF REAUTHORIZATION OF A PREPAID CARD OR AUTHORIZATION NUMBER,ARE SUBJECT TO TAX UNDER THIS SECTION. Section 10. Section 8A-465 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-465. Retail sales: exemptions. Income derived from the following sources is exempt from the tax imposed by Section 14-460: (a) sales of tangible personal property to a person regularly engaged in the business of selling such property. (b) out-of-Town sales or out-of-State sales. (c) charges for delivery, installation, or other direct customer services as prescribed by Regulation. (d) charges for repair services as prescribed by Regulation, when separately charged and separately maintained in the books and records of the taxpayer. 14 (e) sales of warranty, maintenance, and service contracts, when separately charged and separately maintained in the books and records of the taxpayer. (f) sales of prosthetics. (g) sales of income-producing capital equipment. (h) sales of rental equipment and rental supplies. (i) sales of mining and metallurgical supplies. (j) sales of motor vehicle fuel and use fuel which are subject to a tax imposed under the provisions of Article I or II,Chapter 16,Title 28,Arizona Revised Statutes;or sales of use fuel to a holder of a valid single trip use fuel tax permit issued under A.R.S.Section 28-5739,or sales of natural gas or liquefied petroleum gas used to propel a motor vehicle. (k) sales of tangible personal property to a construction contractor who holds a valid Privilege Tax License for engaging or continuing in the business of construction contracting where the tangible personal property sold is incorporated into any structure or improvement to real property as part of construction contracting activity. (I) sales of motor vehicles to nonresidents of this State for use outside this State if the vendor ships or delivers the motor vehicle to a destination outside this State. (m) sales of tangible personal property which directly enters into and becomes an ingredient or component part of a product sold in the regular course of the business of job printing,manufacturing, or publication of newspapers, magazines, or other periodicals. Tangible personal property which is consumed or used up in a manufacturing,job printing, publishing, or production process is not an ingredient nor component part of a product. (n) (Reserved) (1) (Reserved) (2) (Reserved) (o) sales to hotels,bars,restaurants,dining cars,lunchrooms,boarding houses,or similar establishments of articles consumed as food, drink, or condiment, whether simple, mixed, or compounded, where such articles are customarily prepared or served to patrons for consumption on or off the premises, where the purchaser is properly licensed and paying a tax under Section 8A-455 or the equivalent excise tax upon such income. (p) sales of tangible personal property to a qualifying hospital, qualifying community health center or a qualifying health care organization, except when the property sold is for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C. Section 512 or sales of tangible personal property purchased in this State by a nonprofit charitable organization that has qualified under Section 501(c)(3)of the United States Internal Revenue Code and that engages in and uses such property exclusively for training,job placement or rehabilitation programs or testing for mentally or physically handicapped persons. (q) sales of food for home consumption. (r) sales of the following to persons engaging or continuing in the business of farming, ranching, or feeding livestock, poultry or ratites: (1) seed, fertilizer, fungicides, seed treating chemicals, and other similar chemicals. (2) feed for livestock,poultry or ratites,including salt,vitamins,and other additives to such feed. (3) livestock, poultry or ratites purchased or raised for slaughter, but not including livestock purchased or raised for production or use, such as milch cows, breeding bulls, laying hens, 15 riding or work horses. (4) (Reserved) This exemption shall not be construed to include machinery, equipment, fuels, lubricants, pharmaceuticals, repair and replacement parts, or other items used or consumed in the running, maintenance, or repair of machinery, equipment, buildings, or structures used or consumed in the business of farming, ranching, or feeding of livestock, poultry or ratites. (s) sales of groundwater measuring devices required by A.R.S. Section 45-604. (t) sales of paintings,sculptures or similar works of fine art, provided that such works of fine art are sold by the original artist; and provided further that sales of"art creations", such as jewelry, macrame, glasswork, pottery, woodwork, metalwork, furniture, and clothing, when such "art creations" have a dual purpose, both aesthetic and utilitarian, are not exempt,whether sold by the artist or by another. (u) sales of aircraft acquired for use outside the State, as prescribed by Regulation. (v) sales of food products by producers as provided for by A.R.S. Sections 3-561, 3-562 and 3-563. (w) (Reserved) (x) sales of food and drink to a properly licensed restaurant which provides such food and drink without monetary charge to its employees for their own consumption on the premises during such employees' hours of employment. (y) (Reserved) (z) gross income received for tangible personal property consisting of manufactured items destroyed by being subjected to destructive stress, strain or similar testing, for the purpose of developing engineering information or for the purpose of quality control, but only to the extent that a sale of said property would otherwise be exempt by the provisions of this Chapter. (aa) the sale of tangible personal property used in remediation contracting as defined in Section 8A-100 and Regulation 8A-100.5. (bb) sales of materials that are purchased by or for publicly funded libraries including school district libraries, charter school libraries, community college libraries, state university libraries or federal, state, county or municipal libraries for use by the public as follows: (1) printed or photographic materials. (2) electronic or digital media materials. (cc) sales of food, beverages, condiments and accessories used for serving food and beverages to a commercial airline,as defined in A.R.S. §42-5061(A)(50),that serves the food and beverages to its passengers,without additional charge,for consumption in flight. For the purposes of this subsection, "accessories"means paper plates,plastic eating utensils,napkins,paper cups,drinking straws,paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (dd) in computing the tax base in the case of the sale or transfer of wireless telecommunication equipment as an inducement to a customer to enter into or continue a contract for telecommunication services that are taxable under Section 8A-470,gross proceeds of sales or gross income does not include any sales commissions or other compensation received by the retailer as a result of the customer entering into or continuing a contract for the telecommunications services. (ee) for the purposes of this Section, a sale of wireless telecommunication equipment to a person who holds the equipment for sale or transfer to a customer as an inducement to enter into or continue a contract for telecommunication services that are taxable under Section 8A-470 is considered to be a sale for resale in the regular course of business. 16 (ff) sales of alternative fuel as defined in A.R.S. § 1-215, to a used oil fuel burner who has received a Department of Environmental Quality permit to burn used oil or used oil fuel under A.R.S. §49-426 or§49-480. (gg) sales of food,beverages,condiments and accessories to a public educational entity, pursuant to any of the provisions of Title 15, Arizona Revised Statutes; to the extent such items are to be prepared or served to individuals for consumption on the premises of a public educational entity during school hours. For the purposes of this subsection,"accessories"means paper plates,plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (hh) sales of personal hygiene items to a person engaged in the business of and subject to tax under Section 8A-444 of this code if the tangible personal property is furnished without additional charge to and intended to be consumed by the person during his occupancy. (ii) FOR THE PURPOSES OF THIS SECTION, THE DIVERSION OF GAS FROM A PIPELINE BY A PERSON ENGAGED IN THE BUSINESS OF OPERATING A NATURAL OR ARTIFICIAL GAS PIPELINE, FOR THE SOLE PURPOSE OF FUELING COMPRESSOR EQUIPMENT TO PRESSURIZE THE PIPELINE, IS NOT A SALE OF THE GAS TO THE OPERATOR OF THE PIPELINE. (jj) SALES OF FOOD, BEVERAGES, CONDIMENTS AND ACCESSORIES TO A NONPROFIT CHARITABLE ORGANIZATION THAT HAS QUALIFIED AS AN EXEMPT ORGANIZATION UNDER 26 U.S.0 SECTION 501(C)(3) AND REGULARLY SERVES MEALS TO THE NEEDY AND INDIGENT ON A CONTINUING BASIS AT NO COST. FOR THE PURPOSES OF THIS SUBSECTION, "ACCESSORIES" MEANS PAPER PLATES, PLASTIC EATING UTENSILS, NAPKINS, PAPER CUPS, DRINKING STRAWS, PAPER SACKS OR OTHER DISPOSABLE CONTAINERS, OR OTHER ITEMS WHICH FACILITATE THE CONSUMPTION OF THE FOOD. (kk) SALES OF MOTOR VEHICLES THAT USE ALTERNATIVE FUEL AS DEFINED IN A.R.S.SECTION 43-1086 ON OR AFTER MAY 5, 1999. Section 11. Section 8A-470 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-470. Telecommunication services. (a) The tax rate shall be at an amount equal to zero percent(0%)of the gross income from the business activity upon every person engaging or continuing in the business of providing telecommunication services to consumers within this Town. (1) Telecommunication services shall include: (A) two-way voice,sound,and/or video communication over a communications channel. (B) one-way voice, sound, and/or video transmission or relay over a communications channel. (C) facsimile transmissions. (D) providing relay or repeater service. (E) providing computer interface services over a communications channel. (F) time-sharing activities with a computer accomplished through the use of a communications channel. (2) Gross income from the business activity of providing telecommunication services to consumers within this Town shall include: (A) all fees for connection to a telecommunication system. (B) toll charges, charges for transmissions, and charges for other telecommunications services;provided that such charges relate to transmissions originating in the Town and terminating in this State. (C) fees charged for access to or subscription to or membership in a telecommunication 17 system or network. (D) charges for monitoring services relating to a security or burglar alarm system located within the Town where such system transmits or receives signals or data over a communications channel. (b) Resale telecommunication services. Gross income from sales of telecommunication services to another provider of telecommunication services for the purpose of providing the purchaser's customers with such service shall be exempt from the tax imposed by this Section; provided, however, that such purchaser is properly licensed by the Town to engage in such business. (c) Interstate transmissions. Charges by a provider of telecommunication services for transmissions originating in the Town and terminating outside the State are exempt from the tax imposed by this Section. (d) (Reserved) (e) However, gross income from the providing of telecommunication services by a cable television system,as such system is defined in A.R.S.Section 9-505,shall be exempt from the tax imposed by this Section. (f) PREPAID CALLING CARDS. TELECOMMUNICATIONS SERVICES PURCHASED WITH A PREPAID CALLING CARD THAT ARE TAXABLE UNDER SECTION 8A-460 ARE EXEMPT FROM THE TAX IMPOSED UNDER THIS SECTION. Section 12. Section 8A-475 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-475. Transporting for hire. The tax rate shall be at an amount equal to two percent(2%)of the gross income from the business activity upon every person engaging or continuing in the business of providing the following forms of transportation for hire from this Town to another point within the State: (a) transporting of persons or property by railroad-;PROVIDED,HOWEVER,THAT THE TAX IMPOSED BY THIS SUBSECTION SHALL NOT APPLY TO TRANSPORTING FREIGHT OR PROPERTY FOR HIRE BY A RAILROAD OPERATING EXCLUSIVELY IN THIS STATE IF THE TRANSPORTATION COMPRISES A PORTION OF A SINGLE SHIPMENT OF FREIGHT OR PROPERTY, INVOLVING MORE THAN ONE RAILROAD, EITHER FROM A POINT IN THIS STATE TO A POINT OUTSIDE THIS STATE OR FROM A POINT OUTSIDE THIS STATE TO A POINT IN THIS STATE. FOR PURPOSES OF THIS PARAGRAPH, "A SINGLE SHIPMENT' MEANS THE TRANSPORTATION THAT BEGINS AT THE POINT AT WHICH ONE OF THE RAILROADS FIRST TAKES POSSESSION OF THE FREIGHT OR PROPERTY AND CONTINUES UNTIL THE POINT AT WHICH ONE OF THE RAILROADS RELINQUISHES POSSESSION OF THE FREIGHT OR PROPERTY TO A PARTY OTHER THAN ONE OF THE RAILROADS. (b) transporting of oil or natural or artificial gas through pipe or conduit. (c) transporting of property by aircraft. (d) transporting of persons or property by motor vehicle,including towing and the operation of private car lines, as such are defined in Article VII, Chapter 14, Title 42, Arizona Revised Statutes; provided, however, that the tax imposed by this subsection shall not apply to: (1) gross income subject to the tax imposed by Article IV, Chapter 16,Title 28,Arizona Revised Statutes. (2) gross income derived from the operation of a governmentally adopted and controlled program to provide urban mass transportation. 18 (3) (Reserved) (4) (Reserved) Section 13. Section 8A-575 of the Tax Code of the Town of Oro Valley is amended to read: Sec. 8A-575. Judicial review. (a) Appeal of a State Board of Tax Appeals decision to the courts is valid only if all the provisions of A.R.S. Section 42-124 are met. (b) (Reserved) (c) (Reserved) (d) (Reserved) (e) THE TOWN HAS THE BURDEN OF PROOF BY A PREPONDERANCE OF THE EVIDENCE IN ANY COURT PROCEEDING REGARDING ANY FACTUAL ISSUE RELEVANT TO ASCERTAINING THE TAX LIABILITY OF A TAXPAYER. THIS SUBSECTION DOES NOT ABROGATE ANY REQUIREMENT OF THIS CHAPTER THAT REQUIRES A TAXPAYER TO SUBSTANTIATE AN ITEM OF GROSS INCOME, EXCLUSION, EXEMPTION, DEDUCTION, OR CREDIT. THIS SUBSECTION APPLIES TO A FACTUAL ISSUE IF A PREPONDERANCE OF THE EVIDENCE DEMONSTRATES THAT: (1) THE TAXPAYER ASSERTS A REASONABLE DISPUTE REGARDING THE ISSUE. (2) THE TAXPAYER HAS FULLY COOPERATED WITH THE TAX COLLECTOR REGARDING THE ISSUE, INCLUDING PROVIDING WITHIN A REASONABLE PERIOD OF TIME, ACCESS TO AND INSPECTION OF ALL WITNESSES,INFORMATION AND DOCUMENTS WITHIN THE TAXPAYER'S CONTROL, AS REASONABLY REQUESTED BY THE TAX COLLECTOR. (3) THE TAXPAYER HAS KEPT AND MAINTAINED RECORDS AS REQUIRED BY THE TOWN. fe)(f) The issuance of an adjusted or corrected assessment or notice of refund due to the taxpayer,where made by the Tax Collector pursuant to the decision of the Hearing Officer, shall not be deemed an acquiescence by the Town or the Tax Collector in said decision, nor shall it constitute a bar or estoppel to the institution of an action or counterclaim by the Town to recover any amounts claimed to be due to it by virtue of the original assessment. )(g) After the initiation of any action in the appropriate court by either party, the opposite party may file such counterclaim as would be allowed pursuant to the Arizona Rules of Civil Procedure. Section 14. Regulation 8A-100.4 of the Tax Code of the Town of Oro Valley is amended to read: Reg. 8A-100.4. Out-of-Town/Out-of-State Sales: Sales to frtdiarts NATIVE AMERICANS. Sales to trans NATIVE AMERICANS or tribal councils by vendors located within the Town shall be deemed sales within the Town, unless all of the following conditions exist: (1) The vendor has properly accounted for such sales, in a manner similar to the record keeping requirements for out-of-Town sales; and, (2) All of the following elements of the sale exist: (A) solicitation and placement of the order occurs on the reservation; and (B) delivery is made to the reservation; and (C) payment originates from the reservation. 19 TOWN OF ORO VALLEY r OUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR& COUNCIL FROM: David L. Andrews, Finance Director SUBJECT: Acceptance of the Solid Waste Management Task Force Report and Supplemental Report and Possible Action Regarding Solid Waste Collection within the Town SUMMARY: In December 1998 the Town Council formed the Solid Waste Management Task Force. The Task Force presented its report dated April, 1999 to the Council during a study session in May. The Council then elected to hold twop ublic hearings, one on August 25 and the other on September 29 in order to obtain broad public input with regard to the solid waste management issue in Oro Valley. After the close of the September public hearing, the Council directed that the Task Force reconvene, discuss the issues raised during the public hearings and prepare a supplemental report to the April report that addresses those issues. be Task Force has prepared a supplemental report based on Council direction. That report is included as an attachment to this communication. Several members of the Task Force will be present this evening and would like to address the Council subsequent to an Introduction/Overview presentation by Mr. Dick Izen, Chairman of the Task Force. These members would like the opportunity to address the Council with respect to the need for government intervention, costs, existing contracts and recycling issues. It should be mentioned that at its September 29 meeting, the Task Force thoroughly deliberated a suggested motion for the Council at this evening's meeting. The Task Force indicated a strong desire for government intervention through the request for proposal process and was very specific in its recommendation which is outlined below. SWMTF RECOMMENDED MOTION: The Task Force recommends that the Council move to accept the Task Force Report dated April, 1999, and including the supplemental Task Force report and that the Council direct Town staff to issue a request for proposals (RFP) for residential solid waste collection services, evaluate said proposals upon receipt and return results of the RFP evaluation to the Town Council for Council consideration and possible award of bid. TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 2 OF 2 STAFF RECOMMENDATIONS: Staff recommends the following: 1. Acceptance of the Task Force Report dated April, 1999 along with the supplemental report 2. That the Town Council thank the Solid Waste Task Force members for their service to the Town and dissolve the Task Force 3. Modifications to the town code to reflect much of the service/evaluation standards and regulations as outlined in the draft RFP 4. Further refinement of the RFP to better define and clarify issues such as landfill sites/tipping fees, geographic sub-regions, costs, and any other points that may arise 5. Upon completion of#1 and#2, staff recommends the possible hiring of a contract administrator/recycling coordinator to accomplish item#3 and establish a sustainable and meaningful Town solid waste collection program including a purposeful recycling program ATTACHMENTS: 1. Supplemental Task Force Report 2. Solid Waste Staffing Research Information SOLID WASTE TASK FORCE SUGGESTED MOTION: I move to accept the Solid Waste Management Task Force Report and the Supplemental Report and I also move to direct staff to issue and evaluate a request for proposals (RFP) for residential solid waste collection services and return the results of the RFP evaluation to the Town Council for future consideration and possible award of bid. or STAFF SUGGESTED MOTION: I move to accept the Solid Waste Management Task Force Report/Supplemental Report, direct staff to begin the process to modify the town code to reflect service level standards and regulations as reflected in the Task Force's draft RFP, and dissolve the Solid Waste Task Force. or OTHER SUGGESTED MOTION: I move to accept the Solid Waste Management Task Force Report and the Supplemental Report only. or I move to . . . David L. Andrews Finance Director Alf 41 A -411.1 !Xi Chuck Sweet Town Manager Solid Waste Management Task Force Town of Oro Valley 11000 La Canada Drive Oro Valley, AZ 85737 October 14, 1999 Members of Town Council of Oro Valley; At the September 29, public comment meeting, the mayor asked that we reassemble to Task Force to examine the public input that had been received and to present the Town Council with a summary of the points raised and our reactions and recommendations. This was done at a meeting on October 14 and the supplemental report is enclosed. The report covers the following topics; Citizen and Town Council Concerns 1. Collection Frequency 2. People who haul their own trash to the dump 3. Billing of Part Time Residents 4. Is there a need for government intervention 5. Additional Costs to the Town 6. Lack of Competition 7. Need for additional Recycling Opportunities 8. Need for(lack of) performance penalties 9. Hazardous Materials Program Trash Hauler Concerns 10. Bonding 11. Tipping Fees 12. Ordinance vs. Contract 13. Probable Cost impact to Customers 14. Existing Contracts As reported within the April report, the Task Force strongly believes that it is important that the town involve itself in the trash collection process for improved health and saftey of its citizens and improved recycling efforts. For the reasons expressed in that report and the supplemental comments we also believe that this can be done with little or no cost to the customers. Having said this, we have also provided detailed recommendations and comments on how the town might implement this involvement. We accept, however, that the Town Council, and or Town staff may modify the particulars of these recommendations as they deem appropriate. Our basic concern is that the Town act to gain control of the overall solid waste process before our continued growth creates an even more difficult and inequitable situation. Respectfully submitted, L.,,,,),,,, e,zoi..-----" Solid Waste Management Task Force Dick Izen, Chairperson end.: Supplemental Report Dated October 14, 1999 Supplement to the Town of Oro Valley Solid Waste Management Task Force Report of April, 1999 Supplemental Report Dated October 14, 1999 At the request of the Mayor and Town Council the Solid Waste Management Task Force, originally disbanded in March of 1999, has been reformed to address input from citizens and trash haulers (particularly Waste Management and TNT) regarding the April 16, 1999 report of the Task Force. These comments were received during the Council Study Session (May 10), the Public Comment Meetings (August 25 and September 29), and by six letters from citizens. The Task Force met on October 14, considered the issues listed below, and has the following comments and recommendations on these issues. Please note that, to the extent possible, we have segregated the concerns and issues raised by citizens and members of the Town Council from those raised by trash haulers. We have attempted to be responsive to both classes of issues but place a higher priority on those raised by citizens. We have done this because we recognize that while the trash haulers, like any business person, would prefer to have satisfied customers, their primary allegiance is to their own profits. There is nothing immoral or controversial in this and the Task Force does not suggest that the Council ignore the trash haulers, who have vast experience in this area. We do suggest, however, that the Town Council, whose primary concern is the benefit of the town and its citizens, should maintain a healthy skepticism towards the suggestions of the trash haulers whose motivation may be, in part or entirely, other than the best interests of the town. Citizen &Town Council Concerns 1. Collection Frequency The most often publicly discussed point was the question of once a week collection vs. twice a week collection (for other than recycled material). The task force was split on this issue and, in a perfect world, would have preferred once a week collection to further reduce the truck traffic and further encourage recycling. We recommended twice a week as the base position, however, primarily for political reasons. Our research covered 5,264 households in various homeowner associations. This was slightly over half of the 10,000 households estimated by Planning and Zoning at that time. Of the households surveyed 82% (4,325 of the 5,264) had twice a week collection. We felt that attempting to change such a large portion before working to improve the recycling participation would create a political situation that might jeopardize the entire program. This seemed to be confirmed by the experience of Tucson, which moved to once a week pick up in some neighborhoods on an experimental basis. While this worked well from the City's point of view, there was considerable public protest which led them to drop the experiment and return to twice a week pick up. We also noted that there was no consistency in cost savings between once and twice a week collection. While the lowest cost in the survey was the Links (106 homes) at$7.78 per month for once a week collection, we also noted that homes in Copper Creek(184 homes) and Rancho Vistoso (200 homes)with once a week collection paid $9 per month. Twice a week collection was noted in a substantial portion of homes at$8 per month (736 homes in Copper Creek and 800 homes in Rancho Vistoso). During the Task Force studies one trash hauler cautioned that the reduction of twice a week service to once a week might not provide a substantial savings as, all other factors remaining equal, the same number of trucks and drivers would be hauling the same tonnage of waste material. Accordingly, while we suggested getting the bid (RFP) on both basis, we recommend twice a week pick up with recycling charges included. We also recommended implementation of a recycling education program, and, as participation in recycling improved, a move to once a week pickup with the attendant benefits. Given what we have seen of the rate inconsistency it appears that people who prefer once a week pickup would not be adversely impacted financially and, if they prefer, could simply not take their bins to curbside on the second pickup day. The task force would be pleased with either alternative the town chooses to decide upon. 2. People who haul their own trash to the dump The next most frequent item, raised by several members of the public as well as one Councilmember was that charging persons who hauled their own trash to the dump would be unfair. Another Councilmember felt that making this a universal charge would make it a Tax and that this was objectionable on that basis alone. In fact, this Councilmember suggested that once such a charge was enacted, it would invariably lead to additional Oro Valley taxes and expanded Oro Valley government activities. The Task Force had initially considered that the small amount of anticipated cost and the perception that this was a relatively small group of persons argued against exempting these people. In view of the concern expressed, the Task Force suggests modifying its recommendation to allow exemption for citizens who haul their own trash to the dump. Note that this exemption would allow these citizens to avoid the service charge but would not allow them to contract with other trash haulers to perform this function. This should satisfy both the expressed Council concerns as well as the concerns of citizens who raised this issue. Leaving some people out of this charge would somewhat reduce the peripheral benefit mentioned in last April's report of having an up to date fully inclusive computer file of all citizens for use by the town in communicating important information. To the extent that the persons who haul their own trash to the dump are also on private wells or serviced by Tucson water, and therefore do not receive an Oro Valley water bill, they would not be captured in the town data base. 3. Billing of Part Time Residents The third most raised issue was that of full time billing for part time residents. Several residents thought that this would not be fair. The Task Force had concluded that the reverse is true. Because the infrastructure (collection and recycling trucks, trash bins, recycling containers, etc.) exists year round and because there are very real costs involved in setting up and deleting part time customers from the billing files, the current full year users effectively subsidize the part time residents under the current system. This is because the trash haulers spread their full costs over their anticipated billing over the year. This has been confirmed by a commercial trash hauler. While we remain of the opinion that full year billing is both the most cost effective and the most fair method, we accept that the perception of full time billing is unfair. Many of the persons who raised this issue pointed to how they could stop their other utility bills when they were not in residence. Accordingly the Task Force would like to recommend that we follow the example of all other utilities (gas, electric, telephone and even Oro Valley Water) and charge a connection or start up fee in lieu of full year billing. In practice this would mean that we would set up all customers with no initial start up fee. When a customer removed their name from the billing list(presumably as summer approached) the name would go to a no bill status but be retained on the system. If(presumably in the fall) a person with the same or similar name requested service at the same location they would be charged a start up fee. 2 Persons who purchased re-sale homes would have a new name and would not be charged the start up fee placing them in the same situation as all other Oro Valley customers. (Note that this is not foolproof as return customers could sneak by the system by providing false names, etc. but this seems to be too small a matter to be of concern). This practice would, we believe, accomplish the same objective of ending the subsidy for part time residents while creating the perception of being more equitable. 4. Is there a need for government intervention One Councilmember has repeatedly objected to `getting government involved when private industry has resolved the problem and is providing good service.' This Councilmember went on to suggest that getting government involved would only result in `screwing up' the current smooth running system. None of the Task Force members are advocates of expansion of government in principal. We do believe, however, that there are serious problems in the current system, and that, because trash service is so basic to the health and well being of the community, the Town of Oro Valley should respond to these problems. Basically these problems may be addressed in three sub groups, recycling, health and safety issues, and equitable costs or billing. A Recycling Problems Pima County requires all licensed trash haulers to offer recycling services and used to subsidize these services. It is silent on charges for these services and due to fiscal ineptitude, which is unlikely to be resolved in the next several years, is no longer able to support recycling subsidies. The trash haulers, who used to offer recycling as a part of their normal service, have taken steps to discourage recycling in an effort to improve their profitability. Generally they have moved to make recycling collection a significant incremental charge. In addition, some haulers have imposed onerous conditions such as the removal of labels from glass bottles. Given the additional costs and onerous conditions participation in recycling has declined. As noted above the trash haulers actions are not immoral but simply a logical step given their devotion to the profit motive rather than to the long term benefit of the communities that they serve. From a community point of view this short term focus on profits wastes scarce natural resources, increases the load on our rapidly diminishing landfill resources and is environmentally unsound. Both members of the Task Force and members of the community have expressed an interest in Oro Valley leading the way in this area just as it has in other areas. Further we believe that opportunities exist to save sufficient money from the basic trash fee so that recycling service could be provided at no additional cost to the customer. Accordingly we think that the Town should involve itself in correcting the current situation. B Health and Saftey Problems Currently various haulers run trucks over our road on different days of the week. Despite protestation by WM at the August comment meeting, there is no thought to scheduling to reduce the number of days with collection trucks on the streets, nor is it likely that the current competitive situation would allow coordination of collection. The result of this is both increased pollution and excessive wear of public(and private) streets and roads. In addition the increased truck traffic increases the opportunity for accidents both involving other vehicles and children who tend to play in and near streets. If the Town were to involve itself it would be simple to ensure that no street had trash collection trucks more than the absolute minimum number of days required to meet the pick up schedule. 3 C Cost and Billing Problems We have presented, in the April report, a survey of over half the homes in Oro Valley which indicates that there is no consistency between services rendered and charges. Our survey was necessarily limited to larger groups, but anecdotally we have seen examples of individual Oro Valley citizens being charged $20 per month for once a week service. It is clear that the collective bargaining power of homeowners association has reduced fees but that individual customers are at the mercy of a predatory 'all the market will bear' situation. With continual acquisitions and consolidations in the trash haulers market, a oligarchy is developing in which a few large companies can charge excessive amounts to individual customers while new entrants to the market find it difficult to enter Oro Valley due to distance. This calls for government intervention to ensure some reasonable relation between the cost of a vital service and the charges to individual citizens. Even if the Town Council was not concerned with these inequitable charges, experience in other jurisdictions indicate that the governments that do not gain control of these services experience rapid increases in costs especially as landfill space decreases. This leads to both illegal roadside dumping and citizen dissatisfaction. 5. Additional costs to town If the Oro Valley Water Utility assumes the billing of trash collection services, there would be additional costs in mailing to the 1,000 to 1,200 customers not normally served by the water utility. The April report dealt with the costs of billing which were conservatively estimated to be about $420 per month. Subsequently the OV Water Utility has estimated these costs at$375 per month. There has been some suggestion that involvement by the town would require the hiring of`trash police' to ensure contract compliance. The Task Force believes that this is not realistic as homeowners would bring complaints of inadequate service (real or imagined) to the Town. The Town staff has surveyed three communities and found that none of these towns had enforcement officials although one of them expressed a desire to hire one. Based on this survey, including the volumes in these towns, the Town staff has estimated a need for four new full time positions; a contract administrator, two customer service representatives and an enforcement officer. The fully burdened annual cost of these four persons is estimated by the Town staff at$160,000. While the Task Force had estimated a lower number of both staff(2) and burdened cost ($70,000), we think the numbers are small enough that the staff estimate should be accepted for purposes of the Town Council's evaluation of the Task Force recommendations. We note that spread over the currently estimated 12,000 residences, the$160,000 works out to $13.33 per household per annum or about$1.11 per month. 6. Lack of Competition One citizen suggested that only Waste Management could handle the entire town. In addition Waste Management has pointed out that there has been consolidation in the industry and that, of the seven interested parties at the time of our work, only five remain. In addition, in Waste Management's view only three of the five (WM, TNT, Republic/Saguaro)would be of sufficient size and stature to be acceptable bidders. The Task Force has suggested that the town be divided into at least two districts to allow competitive bidding and comparative evaluation of complaint rates. There is no reason why additional districts could not be defined to ensure that smaller, mid sized haulers would be able to bid and compete. In our view, the consolidation of the industry places the individual customer 4 increasingly at a disadvantage when dealing with the haulers and increases the need for the town to use the leverage of its size and ability to award exclusive contracts to protect the citizens. 7. Need for additional recycling opportunities One citizen suggested facilitating recycling by placement of bins at the Town park(s). One Council member applauded the idea and another suggested that perhaps this could be run by one of the service organizations. Another Councilmember noted that with the recycling markets as low as they currently are that there would be a cost to pay for recycling. The Task Force supports the idea of supplemental recycling bins located in the Town parks and possibly at major commercial parking areas. We think that this is an excellent way to encourage apartment dwellers to recycle. We do not, however, believe that central recycling points are an adequate substitute for curbside collection. We note that homeowners could now drive to the Catalina Transfer station to participate in the recycling program at no additional costs (other than gasoline) but that this is not a widely used alternative. While some persons would, no doubt use the park bins, we do not believe that this would sufficiently increase recycling as it would not provide the 'ease of use'which we think is necessary to significantly improve participation. We continue to believe that ease of use and inclusion of recycling in the basic cost structure as well as a strong, pro active educational program are the best way to achieve our objectives. 8. Need for ick of) performance penalties One citizen supported the program but was concerned that he saw no mention of strong financial penalties for trash haulers who failed to fully meet their commitment. The Task Force had suggested (in the RFP) that the trash haulers provide a performance bond to cover a major failure (or bankruptcy) and had felt that the threat of loss of business would provide sufficient incentive to the trash haulers. We were also concerned that an extensive system of financial penalties would require resources to document, arbitrate and administer and that such a system could result in an adversarial rather than a cooperative relationship between the town and the trash hauler. If, however, the Town Council preferred the addition of fines for lack of performance the Task Force would not object. 9. Hazardous Materials Program One Councilmember asked that we also address an expanded hazardous waste materials program. The Task Force had researched this during its initial tenure, and on page 6 of the April report had indicated the following; A Pima County runs a free hazardous household waste collection service at Ina and Oracle (behind Reyes Market) on the first Saturday of each month B The Catalina Transfer Station, which is open 8 am to 5 pm, seven days a week, accepts motor oil, antifreeze, automobile batteries and paints at no charge to the participant. C The household hazardous waste program would be willing to collect at other points, within Oro Valley, so long as we publicize the service and can schedule it for a date when they have resources available. There would be no charge for this service. The task force also believes that publicizing the hazardous waste program would be a good fit with the recycling education program we have recommended. If the Town Council adopts the recommendations and forms the recycling education committee, this group could also be charged with publicizing the hazardous waste opportunities and, if demand warranted, with coordinating, and publicizing a collection within Oro Valley. 5 Trash Hauler Concerns 10. Bonding One trash hauler suggested that the need to post a performance bond would preclude competitive bidding as it was too costly. The Task Force believes that if a contracted trash hauler were to have a major failure in service or were to go bankrupt during the contract period, a performance bond would be an important factor in allowing Oro Valley to ensure uninterrupted service while other bids were solicited or other arrangements were made for the affected district. Generally speaking, a bond covering 90 days of service should be adequate to protect the customers. At the same time we recognize that the size of such a bond should fit the size of the contracted area and the risk to the citizens (resulting from a bankruptcy of the contracted hauler) As the districts are drawn, the size of the bond should be established for that district. A major area would require a significant number of trucks and a significant size bond while a smaller area carved out to encourage mid sized haulers might require fewer assets to provide adequate service and therefore could require a considerably smaller bond. 11. Tipping Fees Landfills charge trash haulers a rate per ton. This fee, along with fuel and labor costs, is a significant and volatile part of the total expenses of the trash haulers. It is volatile because the landfill owner must adjust its fee both to meet competition with other nearby facilities and to cover the total expense of operating the landfill. Landfill operators are subjected to major swings in volume, and therefore operating revenues, when trash haulers move from one landfill to another. Pima County, for example, suffered a major loss when Waste Management decided to stop dumping in the Tangerine Road Landfill and truck its trash to a company owned facility in Maricopa County. Long term tipping fee contracts, therefore, offer both a way to stabilize costs for the haulers and to stabilize revenues for the landfill operator. Unfortunately, haulers can not comfortably enter into these contracts as they have little or no control over their future volumes. The Town of Oro Valley, however, is rapidly growing and, under the Task Force's recommendations, would be in control of a significant tonnage of trash into the future. A long term contract would guarantee any landfill operator the Oro Valley volume while stabilizing the tipping fee costs for any hauler under contract with Oro Valley. Town staff has investigated the situation and found that tipping fees at the Tangerine Road Landfill are currently $21.00 per ton, slightly less than the Tucson charge of$22.00 per ton at its Los Reales Landfill. Further Pima County accepts trash at the Catalina Transfer Station (which is closer to most of Oro Valley)for$22 per ton. We have no information on the costs of hauling to and tipping at the WM owned facility in Maricopa County. With the Waste Management volume no longer being dumped at Tangerine Road, that facility is estimated to have a remaining life to the year 2016. While the Pima County Solid Waste Management Staff can not commit to any long term contract without approval of the Board of Supervisors, they indicated a willingness to consider a long term intergovernmental agreement for solid waste disposal and rates. While long term tipping fee contracts were mentioned as a topic for investigation in the April report (page 9) the Task Force had felt that the Town should focus on the hauling side of the business and tackle the tipping fees at a later date. Based on the additional information that has surfaced and the opinions expressed, we now believe that a long term tipping contract offers significant cost control and should be negotiated if the Town moves forward with the Task Force recommendations. 6 12. Ordinance Vs Contract Trash haulers have suggested that much of the desired result might be accomplished with an ordinance that set performance standards rather than through contracting. This suggestion is somewhat self serving, as the Town would not be able (as a practical matter) to be able to regulate rates under an ordinance. This could leave the town in the unenviable position of being blamed for rate increases (e.g. 'Your rate is being increased because the Town is requiring recycling service' or clean up days, or performance bonds, etc. etc.)with little or no ability to utilize the Town volume to control rates. Further, under an ordinance that set performance standards, the Town would have to do as much inspection and administration to enforce performance as would be required under contract. There is no savings in determining if performance is satisfactory under one system or the other. Establishment of a system of fines for performance failures would be necessary because the Town would no longer have the leverage of being able to cancel a contract and shift a substantial block of business to another hauler. This system of fines would create an adversarial relationship that would involve the courts and attorneys and increase overall costs. Perhaps more importantly, an ordinance would make it more difficult, and in some cases impossible, to capture real cost saving opportunities such as long term tipping fee contracts and Town billing of the trash service charges. In summary the Task Force believes that an ordinance would result in increased costs to consumers, increased profits for the trash haulers and blame for both service failures and higher costs being leveled at the Town. 13. Probable Cost Impact to Consumers Both trash haulers suggested that fees would not necessarily be reduced. Mr. Houser(WM) indicated that many people were paying $3 to $6. As noted earlier we have anecdotal evidence that some individual Oro Valley customers (those without the benefit of a homeowners association) are paying $20 a month for once a week pick up service. Based on our research, while there may possibly be some customer with a long term fixed price contract at$3 per month, this does not seem to be a base from which the council can reasonably draw comparisons. We can only conclude that Mr. Houser may have inadvertently misspoken in order to emphasize his point. As our study showed, the current rates in Oro Valley, for homeowners associations constituting over half the households, range from$7.78 to$9.75 per month for trash collection with recycling generally an optional extra. No clear pattern emerges between once a week and twice a week collection. The task force thinks that rates can be held or reduced for the following reasons: a) Competitive bidding for exclusive service to a large block(or district) of customers is of value to the trash haulers. This means more cost effective use of equipment and lower costs. b) Reduction or elimination of the current subsidy of part year residents by full time residents. The costs of loading people onto the route scheduling and billing systems and having both trucks and trash bins to meet part year peak needs would be covered either by continuous billing year round or by a connection fee similar to that imposed by other utilities. This allows a reduction in the monthly amount billed. c) Absorption of the billing and collection function. At an earlier meeting, during negotiations with the Vistoso Community Association, Mr. Smith (TNT) indicated that this function 7 (including write off of bad debts) cost him approximately $1 per customer per month. Absorption of this function would be a significant reduction in trash haulers expense base. d) Removal of the risk of increasing tipping fees through a long term tipping contract would be of value to both the hauler and the Town and this stability should allow a tighter estimate of costs resulting in a lower bid for services. 14. Existing Contracts There are some existing contracts with trash haulers. At the September 29, meeting Mr. Houser (WM) indicated that he had contracts ranging from three to five years. We have requested a listing of any such contracts within Oro Valley and Mr. Houser has agreed to provide that list to the Town Attorney. A summary of these contracts will be provided by the Town Attorney's office after the contracts have been received. In our April report we noted that the then Town Attorney felt that these were unenforceable because they violated the existing Oro Valley ordinance. The current Town Attorney is not entirely sanguine with this point of view and is currently examining two contracts provided him by Waste Management. In the interim we have begun to contact the major management companies to learn if they have such contracts, if they are exclusive and binding on the members of the associations which they manage, and what cancellation periods and terms are contained in their contracts. I have spoken with Mike Cadden of Cadden Parfrey, Mark Lewis of Lewis Management, Rob Felix who manages Sun City Vistoso and Joseph O'Hain of Stratford Management. These four association managers represent roughly 7,800 of the currently estimated 12,000 single family residences in Oro Valley (e.g. 65% of the residences). They indicated that since the formation of the task force WM has been attempting to obtain long term contracts as a matter of`corporate policy'. They believe that some contracts of three years have been signed with a 6 month termination clause. Further discussion with another of the professional manager indicates that service contracts such as these typically have a 30 to 90 day cancellation clause. Several of the managers indicated that their association contracts were not binding on the individual homeowners (at least 3,700 homes representing Vistoso Community Association and Sun City Vistoso). We will continue this investigation, and we recognize that at least one five year contract has been delivered to the Town Attorney. It is possible that some associations or individuals have an enforceable five year contract. At the same time however, we believe that the specter of long term (multi year) enforceable contracts being a serious obstacle, as raised by Mr. Houser, like customers with $3 monthly charges, may have been an inadvertent misstatement of the situation. Certainly, if such contracts exist, they apply to relatively few homes. While these homes may need to be implemented on some sort of phased schedule (if enforceable contracts exist), given the length of time required by the RFP process, this should not have a major impact on the adoption and implementation of the Task Force recommendations. 8 ORO VALLEY DEPARTMENT OF PUBLIC WORKS INTEROFFICE MEMORANDUM TO: Solid Waste Task Force FROM: Bill Jansen DATE: October 14, 1999 SUBJECT: Solid Waste Staffing In order to initially investigate potential staffing costs to the Town if the Town administrated the solid waste program as proposed by the Task Force the following information is provided. The following Arizona towns which manage a solid waste collection program similar to that being proposed for Oro Valley were contacted to investigate their staffing needs. In addition, information on customer service staffing was obtained from the OV Water Utility. Municipality Population Accounts Staffing Staff per Account City of 14,000 3,500 Contract Adm., 1 staff per 1167 Goodyear Adm. Asst., accounts Secretary, Need enforcement officer City of 5,035 1,250 1 clerical 1 staffper 1,250 Buckeye accounts City of Page 9,250 2,200 1 administrator 1 staff per 2,200 accounts OV Water 27,000 10,000 3 customer service 1 staff per 2,500 Utility representatives, 1 accounts customer service su•ervisor It would seem reasonable to assume a staffing requirement for the Town to administer a solid waste program based on the above data would be: 1. Contract Administrator and Re-cycling Coordinator(1 @ $45.000) 2. Customer Service Representatives (2 @ $20,000) 3. Enforcement Officer (1 @$38,000) Estimated personnel costs for the staffing requirement including a 30% burden is $159,900. Office space must also be provided along furniture, equipment, vehicle, and data processing. In addition to these costs, OVWU estimates that the cost to bill non- water utility customers including statements, envelops, postage, etc. Is approximately $375.00 per month. TOWN OF ORO VALLEY WATER UTILITY INTEROFFICE MEMORANDUM TO: David Andrews,Finance Director Bill Jansen,Town Engineer FROM: Shirley Seng,Utility Administrator DATE: October 14, 1999 SUBJECT: Fiscal Impact to OVWU if Performing Billing for Solid Waste Services CC: David Hook,Water Utility Director As per our telephone conversation yesterday,the following is an attempt to identify the fiscal impact to the OVWU if required to perform billing functions for solid waste services: Material Costs: There are approximately 924 potential solid waste customers who do not currently get water bills from the OVWU. This number has been rounded to 1,000 for ease in calculating material costs on a monthly basis. Billing statements 1.61 cents ea. x 1,000 = $ 16.10 Inside (return) envelope 1.61 cents ea. x 1,000 = 16.10 Outside (mailing) envelope 1.87 cents ea. x 1,000 = 18.67 Postage (average) 24.30 cents ea. x 1,000 = 243.00 Mail outsource vendor 2.00 cents ea. x 1,000 = 18.00 Lockbox processing 6.00 cents ea. x 1,000 = 60.00 Total monthly costs: 37.39 cents ea. x 1,000 = $371.87 Initial Set Up Costs: Initial set up costs will include printing of new billing statements that include various telephone numbers in an effort to route callers to the right contact source for their inquiry. In addition, there will also be programming costs to customize our billing software to accommodate solid waste billing. The programming costs will be based on the assumptions that this is a monthly billing with a flat rate (the same for each customer). Anything different will increase programming costs. Staff time for the initial set up will be difficult to determine. The most labor-intensive part will be to establish the billing data base for those customers who do not already receive bills from OVWU. Staff will need to coordinate with MDWID and Tucson Water for their customer information. Some effort will need to be made to contact those residents within the Town limits who have their own wells to determine if they want to use the proposed solid waste services. Re-printing of billing statements $1,400.00 Programming Costs $1,000.00 (still awaiting verification) Staff time Unknown Labor Costs: On an average day the OVWU customer service staff handles approximately 125 telephone calls in addition to their other assigned tasks. These calls include inquiries regarding payments, excessive usage, leaks, new service establishment,termination of service, change of name/address, and general service complaints (water pressure, odor,taste). OVWU has 3 customer service representatives that handle the phone calls with the overflow handled by the customer service supervisor. Phone calls generally involve follow-up work i.e. processing of paperwork to ensure appropriate recordation and/or problem solving is completed. A typical phone call will involve approximately 3-5 minutes of staff time not including any follow-up procedures that may be necessary. Existing staff has little to no "free time" with their current workload. It is fair to assume that their workload would increase if OVWU takes on the billing for solid waste services. It will be difficult to determine exactly what impact that increase will have on existing staff since we have had no experience in the solid waste industry. Therefore, staff contacted 3 different solid waste contractors to inquire as to how many customers they served, how many customer service personnel they employed and how may calls they handled on an average day. At the time of this memo,we have only received the following information: C.S. Average # of Average Company Staffing # of Customers Calls per day Length of call TNT 2 12,000 250 - 300 5 min. Desert Dwellers 1 would not provide 200 unsure Waste Management (did not respond) General Questions and/or Comments: • Will this service be billed monthly or quarterly? Typically solid waste is billed quarterly. • If OVWU renders payment to contractors on total billed vs. total collected, will there be a bad debt consideration? It will be difficult to determine actual collections. • Make sure we don't over/under consider staffing since calls are supposed to be routed to different departments. • Any changes to a once a month flat rate charge will increase our programming costs. • Would the solid waste services become a division of the General Fund? • How do we make sure we can provide "quality customer service"without transferring customer calls unnecessarily? Town of Oro Valley Solid Waste Management Municipality: City of Goodyear Population: 14,000 Accounts: 3,500 Staffing: A contract administrator, administrative assistant and secretary handle contract administration, complaints and service calls for trash, water and wastewater. Administrator indicated need for enforcement officer which they currently lack staffing to perform. Billing is handled by Finance. Municipality: City of Buckeye Population: 5,035 Accounts: 1,250 Staffing: City estimates one full-time equivalent clerical position to handle complaints, service calls and billings. Trash, water and wastewater are billed together. The City claims they do not receive many complaints with regard to trash collection, maybe a few per month. Municipality: City of Page Population: 9,250 Accounts: 2,200 Staffing: The City's finance director is the contract administrator (typically just negotiates CPI for contract renewal). City estimates about one full-time equivalent position (complaints, service calls & billings). City estimates six to eight complaints per month are received. TOWN OF ORO VALLEY 6 COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Bryant Nodine, AICP, Planning and Zoning Administrator SUBJECT: RESOLUTION NO. (R)99-1O7DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT KNOWN AS "ORO VALLEY CENTER, PARCEL D SIGN GUIDELINES" SUMMARY: On August 5, 1998 the Council passed, by motion, the Oro Valley Center Parcel D Sign Guidelines. To adopt this package by ordinance, action may be taken, in the form of adoption of the attached resolution, to make said sign package a matter of public record. The ordinance would be adopted at a subsequent Council meeting. The proposed ordinance is enclosed, attached. RECOMMENDATIONS: Planning Staff recommends Council approval of this resolution to make the sign package a public record. SUGGESTED MOTION: I move to approve Resolution No. (R)99-107 making that document known as Ordinance (0)99-58 "Oro Valley Center, Parcel D Sign Guidelines", a public record. ATTACHMENTS: 1. Resolution No. (R)99- 107 Plannin Zoning Administrator Co . •unity Dev- •pment Director bitAu_ �1 Town Manag: F:\ov\ov13\1998\13-98-33\TC_RES Public Record.doc RESOLUTION NO. (R)99- 107 A RESOLUTION OF THE TOWN OF ORO VALLEY, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED ORDINANCE (0)99- 58 "ORO VALLEY CENTER, PARCEL D SIGN GUIDELINES" BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY: That certain document known as Ordinance (0)99-5 8 "Oro Valley Center, Parcel D Sign Guidelines", is hereby declared to be a public record and three copies are to remain on file in the office of the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona this 3rd day of November , 1999. Paul H. Loomis, Mayor ATTEST: Kathryn Cuvelier, Town Clerk APPROVED AS TO FORM: Dan L. Dudley, Town Attorney ORDINANCE NO. 99 - 58 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA AMENDING THAT PORTION OF THE ROONEY RANCH PAD, ORDINANCE NUMBER (0) 89-4 , KNOWN AS THE ORO VALLEY CENTER, PARCEL D SIGN GUIDELINES, BY REFERENCE AND REPEALING ALL RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH. WHEREAS, on August 5, 1998 the Oro Valley Town Council adopted by motion an amendment to the Oro Valley Center, Parcel D Sign Guidelines, a part of the Rooney Ranch PAD, Ordinance Number (0) 89-4 , and WHEREAS, a more appropriate method of adopting an amendment to those guidelines is by Ordinance, NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro Valley, Arizona as follows: SECTION 1. That the certain document purporting to amend that portion of the Rooney Ranch PAD, known as the Oro Valley Center, Parcel D Sign Guidelines, which was passed by the Town Council by motion on August 5, 1998 is hereby amended by striking the purported amendment. SECTION 2. That portion of the Rooney Ranch PAD, Ordinance Number(0) 89-4 known as Oro Valley Center, Parcel D Sign Guidelines is amended by striking those guidelines and inserting in lieu thereof the guidelines contained in attached Exhibit "A" which by this reference are incorporated herein as though fully set forth herein. SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions, or Motions of the Council in conflict with the provisions of this Ordinance are hereby repealed effective as of the effective date of this ordinance. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. 3-6-2 Amendment PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona, this day of November, 1999. TOWN OF ORO VALLEY ATTEST: Paul H. Loomis, Mayor Kathryn Cuvelier, Town Clerk APPROVED AS TO FORM: Dan L. Dudley, Town Attorney 3-6-2 Amendment W N-• 773 U ' I OKi UK - O Cn 4'z K! K) p > C 5 pd (a O (a O O <• a,a).Q �! i= _ -, n?cD E n CI c Ao O O' ""oO� -, N . 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(O a a 0. c CD 0 CD CD CD O CD CD CD cD 10 -v -v 73 I I 33 3 w n) n) x 1 x x x TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: November,3 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Bayer Vella, Senior Planner SUBJECT: DRAWING TO CHOOSE A LUCKY WINNER FROM A POOL OF ENVIRONMENTAL SENSITIVE LANDS ORDINANCE SURVEYS BACKGROUND: To facilitate development of the Environmentally Sensitive Lands Plan and Ordinance, Town staff conducted a random mail survey of 3,500 residents. Staff organized a drawing for a prize in order to provide an extra incentive for citizens to participate. We were very fortunate that Mr. Richard Underwood and Triple AAA Landscaping donated a 24"boxed mesquite tree as a prize. Even though 67 surveys were not delivered due to faulty addresses, 984 of the randomly mailed surveys were returned. Incidentally, 52 additional surveys were filled out by visitors to Town Hall and various events. We are pleased to report a rate of 28.66% from the random sample/mailing effort. As you may be aware, a 15% 'turn rate is mandatory for a survey to be considered valid. The information gathered in the surveys will be utilized to guide the development of the Plan and Ordinance. It will provide a general baseline of information for decisionmakers. The data is currently being tabulated. At a later date, staff will present the survey results to the Council. REQUESTED ACTION: Staff requests that the Mayor and Council choose a lucky winner and -cognize Richard Underwood and Triple AAA Landscaping for donating a tree. Pla fir: d Zoning Administrator 4b445J4:id-a-Z.. Community Develo. ent Director / ( 1 -4. Town Manager F:\PROJECTS\ESLO\Survey\Survey Drawing by Council.doc ADDENDUM REPORT TOWN OF ORO VALLEY 8 COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-98-22 STONE CANYON II FINAL PLAT, COMMON AREAS A & B, RANCHO VISTOSO NEIGHBORHOOD 11 LOCATED IN THE NORTHWEST CORNER OF THE RANCHO VISTOSO PAD, NORTH AND WEST OF THE GOLF CLUB AT VISTOSO, ADDENDUM REPORT. SUMMARY: The applicant has submitted improvement plans for Staff review and approval. However, there are drainage concerns in the improvement plans that may affect the final plat. Staff required the submittal of wildlife friendly crossings for Tortolita Mountain Drive during the preliminary plat phase of this project, which has not been addressed. These issues are listed in Exhibit"A"and must be addressed prior to the recordation of the Final Plat. ATTACHMENTS: 1. Exhibit "A" - Conditions for Approval 1110"L Plann"r d Zoning Administrator / Com s unity Developme irector L 1 ' Town Manager F:\OV\OV 1 2\1998\12-98-22\FPTCRPT2.doc EXHIBIT "A" ADDENDUM REPORT TOWN COUNCIL CONDITIONS FOR APPROVAL OV12-98-22 STONE CANYON II FINAL PLAT 1. The wash crossings for Tortolita Mountain Drive must be designed to be wildlife friendly, and must be submitted for the Planning and Zoning Administrator's approval. 2. If necessary, based on the revised drainage report, delineate any changes to the floodplain and submit a CLOMR and LOMR. 3. All drainage maintenance easements on private lots shall be delineated on the Final Plat. 4. The above-mentioned conditions and the conditions in the first Stone Canyon II Final Plat Town Council report (0V12-98-22) must be addressed and resolved prior to the recordation of the Final Plat TOWN OF ORO VALLEY 8 COUNCIL COMMUNICATION MEETING DATE: November 3, 1999 TO: HONORABLE MAYOR & COUNCIL FROM: Dennis Silva, Jr., Planner I SUBJECT: OV12-98-22 STONE CANYON II FINAL PLAT, COMMON AREAS A & B, RANCHO VISTOSO NEIGHBORHOOD 11 LOCATED IN THE NORTHWEST CORNER OF THE RANCHO VISTOSO PAD,NORTH AND WEST OF THE GOLF CLUB AT VISTOSO BACKGROUND: The WLB Group, representing Vistoso Partners, request Town Council approval of the Stone Canyon II final plat located in the Rancho Vistoso PAD, Neighborhood 11. The proposed subdivision will surround golf holes 10, and 12 to 17 of the Stone Canyon Golf Course (0V12-98-01). The project is located in the northwest corner of Rancho Vistoso, north and west of the existing Golf Club at Rancho Vistoso, and the property will be accessed via an extension of the existing Vistoso Highlands Drive. The existing condition of the site is mostly undisturbed desert. Diverse topography, rock outcrops and several washes characterize the property. SUMMARY: Stone Canyon II will feature a variety of custom homes to be built on one-acre lots. The existing zoning under the Rancho Vistoso PAD is Very Low Density Residential (VLDR). There are 101 proposed lots within a 117.6-acre site. The setbacks for this subdivision are; front — 30', side — 20', and rear — 40'. Issues related to zoning code requirements and plat design are addressed below by topic. Tortolita Mountain Park Trail Access With the direction from Town Council to provide trail access to the Tortolita Mountain Park, the applicants submitted a concept plan illustrating proposed trails (attached). The applicant has also proposed two alternatives for the trail system. The first one is the Honey Bee Canyon trail (see the attached map) and the second one is Western Area Power Administration(WAPA)trail. Honey Bee Canyon Alternative The objective of the Honey Bee Canyon (HBC) Management Plan approved in 1994 is to promote and ensure that use of the Canyon does not create adverse impacts to the existing ecosystem. The HBC Management Plan outlines numerous approaches to limit the intensity related to outdoor recreation in environmentally sensitive lands. Two management zones,A and B, are proposed for HBC. The management policies for each zone reflect its ability to support recreational activities. Zone A extends north from Rancho Vistoso Boulevard and Zone B extends south from the Boulevard. The proposed trailhead is located in Zone B, and the trails connecting from it are in Zone A. If this alternative were used the following HBC management plan access and trail circulation policies would apply: ➢ Establish a permitting system for all users and a control point such as a check-in station where users sign-in, receive permits and offer comments. ➢ Access should have a time restriction; from one-half hour before sunrise to one-half hour after sunset. ➢ Equestrian uses should be allowed provided the ridgeline trail is constructed, due to the narrow width of the channel bottom and the sensitivity of the riparian vegetation. If a channel bottom trail is used, equestrian uses should be limited to 12 users per week with a maximum group size of six. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 5 • Establish a monitoring program for any impacts to the soils and biota within the Canyon resulting from equestrian uses. • No commercial equestrian activities are permitted. • The proposed trail on the concept plan originating from the Honeybee Recreation area should prohibit equestrian use. • Permitting should limit recreational users to 40 people per day. Recreation activities will prohibit non- motorized/mechanical uses. ➢ Picnicking should not be permitted nor should dogs be allowed. The applicant has not made a proposal as to how these policies would be addressed or who would install and maintain the trails. The issue of the provision of public access through Neighborhood 12 has also not been addressed. WAPA Alternative The WAPA alternative proposes trail access to the WAPA line via the sidewalk along Rancho Vistoso Boulevard for hikers, or the Zone B Honey Bee Canyon trail south to connect to the WAPA line and then north. North on the WAPA line there is no proposed connection to the Tortolitas until the Pima County line although there are alternatives that could be developed across State land. In any case, neither the north nor south connections on this alternative are very direct. If the WAPA option is utilized, Staff has concerns that the extra distance to access the Tortolitas will discourage users who will then use HBC. As in the previous option, there has been no commitment on the part of the applicant to provide trail improvements or public access easements on the trails. Clustering The VLDR land use designation in Rancho Vistoso PAD calls for building envelopes and the clustering of these envelopes to minimize environmental disturbance. The re-submittal of the final plat illustrates building envelopes, and addresses clustering as illustrated in the PAD (the excerpt from the PAD is attached). These changes will help preserve environmentally sensitive areas. Golf Course Overlay District The lot layout for this subdivision complies with the provisions in the Golf Course Overlay District. Golf cart paths have been added since the DRB submittal. Where golf cart paths cross lots, a 20' easement will be delineated. The DRB reviewed and approved reduced setbacks for lots 232-234. Staff recommends that the building envelopes for Lots 232-234 shall be shown on the plat and located as close to the front property line as possible. Riparian Habitat Overlay District According to Article 10-7 of the Riparian Habitat Overlay District, any proposed development that encroaches upon designated riparian habitat must complete a Riparian Habitat Study and Mitigation Plan. A portion of the proposed Tortolita Mountain Drive will cross a protected wash. Approximately 8,000 square feet of the low xeroriparian habitat will be affected. Staff will require a wildlife friendly wash crossing for Tortolita Mountain Drive, per the condition in Exhibit"A." Plat Design Rock outcroppings are surrounded by deep soils that support a unique and productive biological community. There are conservation easements dedicated throughout the plat. No Build Areas are also designated throughout the proposed final plat. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 5 Lots 134 and 136 are partially platted in Pima County. Staff recommends that both lots be platted within Town limits. Lot 134 is designated as Common Area"A" on the Stone Canyon I North plat. A final plat amendment for Stone Canyon I must be done showing Lot 134 as not a part of the plat. The VLDR zoning designation in the Rancho Vistoso PAD states that the minimum lot width shall be 150 feet. Lot 204 is less than 150 feet wide on the front property line. A condition has been added that this lot shall be revised to comply with the PAD. GENERAL PLAN COMPLIANCE: Implementing PAD No Build Limits and ensuring that all slopes of 25% or greater will be no build areas, complies with Policy 9.1E, which states "All development proposals should show design strategies used to minimize changes to existing topography and the disturbance of existing vegetation." The plat also promotes Policy 1.1 I,to "encourage the use of building envelopes...[where] the area outside the building envelope must be maintained in a natural state." The proposed plat does promote clustering, which is one of the land use element policies stated in the General Plan. Clustering will ensure that the environmentally sensitive areas will be protected and will provide for added amenities for residents in the area. TRAFFIC: Vistoso Highlands Drive (a minor collector road) will be constructed from its existing terminus northward to the proposed intersection with Tortolita Mountain Drive. Several interior roads will intersect Tortolita Mountain Drive. Some of the interior roads exceed the 600 feet maximum cul-de-sac length. Therefore, turnaround areas shall be provided along these streets to satisfy emergency service providers' concerns for the excessive cul-de- sac length. These turnarounds would be for use by emergency vehicles. The applicant shall provide any additional emergency access points or facilities deemed necessary by emergency service providers to compensate for the excessive cul-de-sac lengths. This 101-lot subdivision of Stone Canyon II is expected to generate 366 trips per day to and from Rancho Vistoso Boulevard. The project traffic engineer forecasts that a traffic signal may be warranted at the Rancho Vistoso Boulevard intersection in the year 2008. The developer shall pay the installation of the traffic signal when warranted. At the existing condition the intersection for Rancho Vistoso Blvd. and Vistoso Highland Drive during AM & PM operates at the level of service (LOS) of A for all movements, except eastbound and westbound left turns which operates at LOS of B. The delay to left-turning vehicles is 5.3 to 5.5 seconds per vehicle. The projected traffic from Stone Canyon II will have no particular impact on the intersection of Rancho Vistoso Blvd. and Vistoso Highlands Drive. DRAINAGE: This project is in a critical basin. Critical basin is one that has been identified as already having severe flooding problems as a result of existing watershed conditions. Stormwater detention facilities are required to be TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 4 of 5 incorporated within this development to the extent necessary to ensure a reduction in the existing 2- 10 and 100- year peak discharges from the site. The amount of reduction shall be 5%. The developer is going to construct a detention basin at Moore Road and King Air Drive. This project site generally drains from north to south. Drainage generated on-site will enter one of several small to moderate sized natural drainageways. These drainageways can carry significant Stormwater runoff. The largest flow occurs in the wash that runs through the middle of this project. Two big washes and two small washes affect this project. One of the washes is a mapped FEMA floodplain. Any encroachment into this wash shall conform to FEMA regulations. The Tortolita Mountain Drive will cross and encroach into these washes at five locations. The drainage structures to be used at these locations will either be RCBC (Reinforced Concrete Box Culvert), CMP, SRP or Con-Arch Culvert. There is adequate buildable area on all lots outside the floodplain and erosion hazard setback. The lot density for this development is relatively small. Drainage from the developed site will, for the most part, follow existing natural drainage patterns. However, some small `v'-ditches may be required along streets. A 2' roll or ribbon curb will be used along both sides of the streets in order to minimize erosion to road shoulders. GRADING: Grading will be restricted to preparation of roads and streets. Lots will be graded on an individual basis for construction of custom homes. Significant cut and fill will not be necessary to construct the streets and roads for this project. The centerline of the roads and streets will closely match existing topography. There will be visible cut and fill slopes adjacent to portions of the road surfaces. Rancho Vistoso PAD grading standards apply to this property. No grading waiver is required for this project. RECOMMENDATION: Staff recommends approval of the final plat subject to the conditions in Exhibit "A." At the request of Town Council, the applicant presented two options for trail access to the Tortolita Mountains. Each option has both merit and limitation. Staff would recommend the trail access issue continue to be pursued, but separate from this plat request. SUGGESTED MOTION: The Council may wish to consider one of the following motions: I move to approve OV 12-98-22 Stone Canyon II, Rancho Vistoso Neighborhood 11 Final Plat, effective on the date of satisfaction of attached conditions listed in Exhibit A, attached herewith. OR TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 5 of 5 I move to approve OV 12-98-22 Stone Canyon II, Rancho Vistoso Neighborhood 11 Final Plat, effective on the date of satisfaction of attached conditions listed in Exhibit A, attached herewith and the following added conditions: OR I move to continue OV 12-98-22 Stone Canyon II, Rancho Vistoso Neighborhood 11 Preliminary Plat, finding that: ATTACHMENTS: l. Exhibit "A" - Conditions for Approval 2. Reduced Copy of the Final Plat 3. Trail Concept Plan 4. Letter of Revision to Trail Plan 64L Planni‘fr d Zoning Administrator Community Development Director atAAL.Town Manager F:\ov\ov12\1998\12-98-22\FPTCRPT.doc EXHIBIT "A" TOWN COUNCIL CONDITIONS FOR APPROVAL OV12-98-22 STONE CANYON II FINAL PLAT 1. The following general notes must be added to the final plat: ➢ "All buyers of lots with conservation easements or other No-Build Areas shall be informed of such easements or areas. Buyers will acknowledge receipt of these information items by signing acknowledgement forms provided and maintained by the developer." ➢ "All riparian areas shall be fenced off and protected from disturbance during construction, in accordance with the Riparian Habitat Ordinance." ➢ "No construction, clearing of vegetation, ground disturbance and alteration of topography regardless of amount shall take place on recorded conservation easements." 2. General Note 29 shall be revised to read, "Grading shall be limited to 20,000 square feet for house pads and accessory uses; otherwise grading shall be limited to roadways, driveways, and utility installation. Areas outside the building envelope shall be recorded as permanent open space. The building envelope shall be staked and then inspected by the Senior Zoning Inspector prior to grading." 3. Lots 134 and 136 must be platted within the Town of Oro Valley jursidiction or show it as not a part of this plat. 4. The building envelopes for Lots 232-234 shall be shown on the plat and located as close to the front property line as possible. 5. The conservation easement symbol must be added to the legend on sheet 2 of the final plat. 6. The plat shall provide the property presentation of locations maps (4-405C.1), title blocks (4-405D.1), section covers (4-405G.2a), and property lines (4-405H.4). 7. Label the section lines on sheets 3 of 14, 8 of 14 and 9 of 14. 8. The line type that represents the riparian area on the legend does not match what is on the plat. 9. Include the line type for the section lines on the legend. 10. The title report does not include the land shown on this final plat, provide the correct title report. 11. Add dimension arrows to all exterior boundary lines to clarify their beginning and end. F:\ov\ov12\1998\12-98-22WPTCRPT.doc OCT 2 The Engineering • Planning KILB Surveying • Urban Design roup Landscape Architecture Inc. October 20, 1999 Mr. Bryant Nodine Town of Oro Valley 11000 North La Canada Drive Oro Valley, Arizona 85737 Subject: Honey Bee Park Trailhead WLB No. 185050-A-029-0104 Dear Bryant: Per our phone conversation, there is apparently some confusion as to how a person could access the future Tortolita Mountain Park from the Honey Bee Park parking lot. First, the Town already owns Honey Bee Canyon from the bridge over Rancho Vistoso Boulevard north to the boundary of Neighborhood 12. The Honey Bee Management Plan calls for this trail to have limited access. It would be relatively simple to connect the parking lot to this limited access trail. Second, there is a sidewalk on both sides of Rancho Vistoso Boulevard which would connect the parking lot to the WAPA trail (which has already been constructed). In addition, there are bike lanes on Rancho Vistoso Boulevard which also would connect from the parking lot to the WAPA trail. Third, a trail through the park could connect with the WAPA trail, thus providing a more "natural" connection than a sidewalk. From that trail connection, one could also travel south along (or through) Big Wash to the Canada Del Oro Wash and ultimately to Catalina State Park. Fourth, given the topography along Rancho Vistoso Boulevard from the parking lot to the WAPA trail, it would be relatively simple to construct a DG pedestrian trail in the right-of-way a few feet back of the sidewalk. These are the reasons we believe the Honey Bee Park parking lot would make an excellent trailhead for the public. In addition, we would point out the park has restrooms, water Engineering • Planning • Surveying • Urban Design • Landscape Architecture Offices located in Tucson, Phoenix, Las Vegas • E-mail: wlbtuc@ix.netcom.com 4444 East Broadway • Tucson, Arizona 85711 • (520) 881-7480 • FAX (520) 881-7492 • The II/LB Group Inc. Mr. Bryant Nodine October 20, 1999 Page 2. fountains and picnic facilities. The dedication of the parking lot would provide an excellent trai l head for the public's use. If you have any questions, please don't hesitate to call me at (520) 881-7480. Sincerely, THE WLB GROUP, INC. J 425-. Charles W. Hulsey, AICP Director of Planning and Landscape Architecture CWH:hg c: Dick Maes Enclosures W:\H EI D I\185050\Letters\nodine.trail2.wpd • ,..-. i , 1 NIIIIMMIIIIIIIIIMIIIII , •A•, ' , - 0*-I ...:,AV,• r s.... s'.. •' „„..„.14...,........ 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U+O .' mAm `�J N . ,, S�D�J EN H,9 9 y vrf � � oti, ` v � tib 7) 9 ^^ 1^ O m2a N Wj F O t t+CT,IGpp N E ( Ol N J U A t0(cd t0 W U W Z � V 0 1n `, O Of 8i WOf,BA OI Of N 000 Of N N#N#U U, U N a s 1 1 ctm 3 = � f NNOE- NU NU ZA NO Z R - f,-10u) SNZN wt0ZZOWZ r']am j 0 l'-:35 ;D tm iuicg'2''-d� (Jlr3-i(wviwg2,63,Ar3c�inSu jg A A W N(O U?N W cO O O A N (J!(P CT Z U A Z N W N Oj U#N W O O �y] O A 0 0 F. A (b J Ol S V�A W t0 Op A W S Op O N N G O -r1 m. �] rimfririm.rir,iririri mrri*..f*m. y -i N:\185050\NEIGH11\CANYON\SOUTH2\FP\FP-60-15.OWG 8/99 C- lef-2-.11 '' "*----' )c FROM Conde NO. 825 8143 Nov. 03 1999 04:27PM P1 N N ‘i 1`1 X M. i-3'\ tC, LtC, K tiERE Ps.-ND 'TYPE COMP FA.CSIMILE TRANSMITTAL_ ___ — — PROM: . � Hector Conde Kathryn��Uveli DACE: coMPAr4Y: 11/03/99_____________-------- TOTALNO.OF PAGES INCLUDING covBlZ: PAX N U MB ER= 3 297 0428 SP,N 17P•R'S REFERENCE N U�,ZgLR: Pf-iONP•NUMBER-. YOUR %FERP•NCE NUMBER; RE: IV URCTF?•N1• Q FOR REVIEW 0 PLEASE COMMENT ❑PLEASE REPLY 0 PLEASE RECYCLE NOT).S/COMMENTS: give copies to each councilrnember? Could you please� � This is for tonight's meeting. Thanks in advance,Hector [CLICK HERE AND TYPE RETURN ADDRESS) FROM : Conde PHONE NO. : 825 8143 Nov. 03 1999 04:28PM P2 ISTRI • $141 YOR 1!i�'TOWN MANAGER 11-t FILE � coAcIL ifi HEADS 0 OTHER �l COMMON AREAS A OOD 11, STO NE CANYON , REPORT ON NEIGHBORHOOD & B Hector Conde 11/1199 _ of pecs a r�nisapproPr�at�on • e Hillside district - 'strict within th i of the Hillside Di Common area designation. 9 , gg) calls al 1. a PAD of 198 (p be set • The Rancho V�stos , requires that the land shall terms. servation area, and also the Hillside Con �� • permanent natural space. aside for the conservation of �, as: « landscape or natural ,� s ace any p defines comrrian openPwhereas, The OVZCRoccupants of a development' _ intended for use by all Ped desert open space.- l completely undisturbed,natural open space "shall mean any natural, p area"; two different land uses. . � has to be changed to natural open space. The designation of common areaa This will preclude any man-made construction in that are • Access does not provide what the Tortolita Mountain Park Trail 2. The proposed in disregard of general attitude of this developer has been9 title implies. The . . page 4.6-8. They state: of the General Plan: in this case, policies in p requirements � be designated and signed by • "atthe time of initial construction, trails are to g 6.1 C. should link their in natural areas." 6.1 D_ "All developments the developer openspace recreation facilities and natural areas to the community p ace network where appropriate" and 6.1E; "Trails should ultimately connect to public networkper the Eastern Pima County System preserves and the regional trail these conditions are met by this plat. Master Plan, where possible." None of . . Furthermore, the Council has mandated that, as a condition of development, a trail is provided. Inconsistencies are: • The Honeybee Canyon access is not a continued trail. It has no A. Th yt provision for its existence in neighborhood 12, as Mr. Silva points out, � and that makes its veryexistence doubtful. The use of the Honeybee for the purpose, as rightfully required by the staff, is going to Canyon p p � 9 to the Town. Anyordinance that cannot be enforced is bring problems order to do what the staff orders, that is, reduce the doomed to fail. In weekly traffic, a rangerinstalled and a ranger station which have to be at the entrance to the Canyon, to control traffic to the Tortolita Mountain Park(IMP). On the other hand a reduced traffic pattern may not be in the b est interest of the TMP. Why have a Park that only 12 persons can visit? ] B. The WAPA alternative is not very attractive because it provides a very lengthy trail to the TMP. It does not propose any staging area for the trail, anywhere. It makes it difficult and even dangerous to cross RV Boulevard with horses. And it has no connection to the Pima Co. trails in the north. FROM : Conde PHONE NO. : 825 8143 Nov. 03 1999 O4:28PM P3 • s is that they be vehicular crossing e uirement for thoseIons coyotes, Wash cross,ngs.Thera in includes mountain �. - The wildlife the area ass of 9 to 10 feet "wildlife f r�cndl� . requires an underpass Inas- The mule deer q dor the deer. The mule deer and cava - � �, of the other side easel wide enough to make vision but the overpass over high and - Mountain Drive only, report names the Tortolita staff the road called Street A should also be included. is required by the PAD. _ Lot 140 smaller than a 3s not 4. Vehicular road Street A" is platted through natural open s pace, which i allowed by the OVZC. For the stated reasons, the proposed request must be denied_