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HomeMy WebLinkAboutPackets - Council Packets (1674)         AGENDA ORO VALLEY TOWN COUNCIL REGULAR AND STUDY SESSION NOVEMBER 3, 2021 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE The Town has modified its public comment procedures in the newly renovated town council chambers. For more details, please see the instructions for in person and/or virtual speakers at the end of the agenda. To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER   ROLL CALL   EXECUTIVE SESSION - Pursuant to ARS §38-431.03(A)(4) to discuss a tentative economic development agreement regarding Project Alpha   RESUME REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS   TOWN MANAGER'S REPORT   The Mayor and Council may consider and/or take action on the items listed below: ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING   INFORMATIONAL ITEMS INFORMATIONAL ITEMS   CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card.   PRESENTATIONS   1.Proclamation - American Diabetes Awareness Month   CONSENT AGENDA  (Consideration and/or possible action)   A.Minutes - October 20, 2021   B.Resolution No. (R)21-50, authorizing and approving an Intergovernmental Agreement (IGA) between the Metropolitan Domestic Water Improvement District, the Town of Marana and the Town of Oro Valley relating to the partnership to accommodate additional partnered water facility construction as part of the Northwest Recharge, Recovery and Delivery System (NWRRDS)   REGULAR AGENDA   1.DISCUSSION AND POSSIBLE ACTION ON THE EL CONQUISTADOR 36 HOLE GOLF COURSE, IRRIGATION SYSTEM CAPITAL IMPROVEMENT PROJECT   FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)   ADJOURNMENT OF THE REGULAR SESSION   STUDY SESSION   CALL TO ORDER   STUDY SESSION AGENDA   1.PRESENTATION AND DISCUSSION REGARDING THE $25M BOND ELEMENTS TO INCLUDE PROJECT TIMELINES AND COSTS   ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.   POSTED: 10/27/21 at 5:00 p.m. by ms When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. PUBLIC COMMENT ON AGENDA ITEMS The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the Town Council prior to the meeting. Further instructions to speakers are noted below. INSTRUCTIONS TO IN-PERSON SPEAKERS Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the discretion of the Mayor. If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue 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. Please step forward to the podium when the Mayor calls on you to address the Council. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. You will only be allowed to address the Council one time 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 matter that is not on the agenda. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote participation will be included in the email. In accordance with the Pima County Health Department’s most recent health advisory, the Town respectfully asks all in-person meeting attendees, regardless of vaccination status, to please wear a mask while indoors. COVID-19 remains a fluid situation, and the Town will adjust its safety guidelines in accordance with any future health advisories from the Health Department. Thank you for your cooperation.    Town Council Regular Session 1. Meeting Date:11/03/2021   Proclamation - American Diabetes Awareness Month Subject Proclamation - American Diabetes Awareness Month Summary Attachments Proclamation     Town Council Regular Session A. Meeting Date:11/03/2021   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - October 20, 2021 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with the following changes) the October 20, 2021 minutes. Attachments 10-20-21 Draft Minutes  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION OCTOBER 20, 2021 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 6:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember Absent:Joyce Jones-Ivey, Councilmember PLEDGE OF ALLEGIANCE    Mayor Winfield led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town meetings.   COUNCIL REPORTS    Councilmember Solomon recognized Auston Collings, a Senior at Basis Oro Valley, for his academic excellence and outstanding community service.    Councilmember Bohen reported that he had attended three business openings and provided a brief summary regarding his experience. Mayor Winfield recognized Oro Valley Magistrate Judge, James Hazel, for his accomplishments and contributions to the Town of Oro Valley. 10-20-21 Minutes, Oro Valley Town Council Regular Session 1    TOWN MANAGER'S REPORT    Town Manager Mary Jacobs reported the following information: Summarized Arizona Cities and Towns Week Recognized the entire Oro Valley Team for their service Update regarding Oro Valley podcasts Mural ribbon cutting at James D. Kreigh Park   ORDER OF BUSINESS    Mayor Winfield reviewed the order of business and stated that the order would stand as posted. Mayor Winfield provided the guidelines for participation in the Town Council's Regular Session meeting.   INFORMATIONAL ITEMS    There were no informational items.   CALL TO AUDIENCE    No comments were received.   PRESENTATIONS   1.Proclamation - Family Court Awareness Month       Mayor Winfield proclaimed November 2021 as Family Court Awareness Month in Oro Valley.   2.Proclamation - Down Syndrome Awareness Month       Mayor Winfield proclaimed October 2021 as Down syndrome Awareness Month in Oro Valley. Christine, Greg and Gregory DeSilva accepted the proclamation.   3.Proclamation - National Arts and Humanities Month       Mayor Winfield proclaimed October 2021 as National Arts and Humanities Month in Oro Valley. Executive Director of the Children's Museum, Hilary Van Alsburg, accepted the proclamation.   4.Presentation and update by Children's Museum of Oro Valley Executive Director, Hilary Van Alsburg       Children's Museum of Oro Valley Executive Director, Hilary Van Alsburg, provided an update 10-20-21 Minutes, Oro Valley Town Council Regular Session 2   Children's Museum of Oro Valley Executive Director, Hilary Van Alsburg, provided an update regarding the Oro Valley Children's Museum. Discussion ensued amongst Council and staff regarding the Oro Valley Children's Museum.   5.FY 21/22 Financial Update Through August 2021       Finance and Budget Administrator, Wendy Gomez, presented item #5 and included the following: General Fund Revenues General Fund Expenditures General Fund Highway Fund Revenues Highway Fund Expenditures Highway Fund Community Center Fund Revenues Community Center Fund Expenditures Community Center Fund Discussion ensued amongst Council and staff regarding item #5.   CONSENT AGENDA    Mayor Winfield requested that item (B) be removed from the Consent Agenda for discussion.   A.Minutes - October 6, 2021       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve item (A) of the consent agenda.  Vote: 6 - 0 Carried   B.Approval to cancel the November 3, 2021 regular Town Council meeting       Mayor Winfield provided an overview of item (B). Discussion ensued amongst Council and staff regarding item (B).    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to cancel the November 3rd, 2021 meeting.    Discussion continued amongst Council and staff regarding item (B).    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to cancel the November 3rd, 2021 meeting.  Vote: 0 - 6 Failed  OPPOSED: Mayor Joseph C. Winfield  Vice-Mayor Melanie Barrett 10-20-21 Minutes, Oro Valley Town Council Regular Session 3   Councilmember Tim Bohen  Councilmember Harry Greene  Councilmember Josh Nicolson  Councilmember Steve Solomon   REGULAR AGENDA    There were no Regular Agenda items.   FUTURE AGENDA ITEMS    Councilmember Bohen requested a future agenda item to discuss the Your Voice Our Future General Plan, action item 135, housing inventory, seconded by Councilmember Nicolson. Coucilmember Bohen requested a future agenda item for possible review and discussion regarding the feasibility of updating impact fees, no second received.   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to adjourn the meeting at 7:00 p.m.  Vote: 6 - 0 Carried     ________________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 20th day of October 2021. I further certify that the meeting was duly called and held and that a quorum was present. _________________________________________ Michael Standish, CMC Town Clerk 10-20-21 Minutes, Oro Valley Town Council Regular Session 4     Town Council Regular Session B. Meeting Date:11/03/2021   Requested by: Peter Abraham Submitted By:Peter Abraham, Water Department:Water SUBJECT: Resolution No. (R)21-50, authorizing and approving an Intergovernmental Agreement (IGA) between the Metropolitan Domestic Water Improvement District, the Town of Marana and the Town of Oro Valley relating to the partnership to accommodate additional partnered water facility construction as part of the Northwest Recharge, Recovery and Delivery System (NWRRDS) RECOMMENDATION: Staff recommends approval. On October 11, 2021, the Oro Valley Water Utility Commission voted unanimously to recommend to Town Council approval of the IGA.  EXECUTIVE SUMMARY: The Town of Oro Valley Water Utility has plans in place to deliver its Central Arizona Project (CAP)  water through a regional project with Metro Water and the Town of Marana utilities known as the Northwest Recharge and Recovery Delivery System (NWRRDS), which was approved by the Town Council on April 19, 2017. The Town's CAP water will be stored underground at the Lower Santa Cruz Replenishment Project, Avra Valley Recharge Project and/or BKW Farms Ground Water Savings Facility. To complete the project, Oro Valley will be the lead agency acting on behalf of, and reimbursed by, the NWRRDS partners to manage the construction and inspection of each partner's booster station and discharge piping per the IGA.  Oro Valley will then transport its water to the Town's Water Service Area through the booster station and pipeline, which will be independently owned and operated by Oro Valley. The major elements of the IGA are as follows:   - The term of the agreement is through Construction acceptance and expiration of the contractors 2-year warranty. - The agreement has a clause to withdraw prior to the commencement of construction. - Oro Valley will be the lead agency responsible for the Construction Management, inspection and final acceptance of the project on the behalf of the partners. - Oro Valley will be reimbursed for all costs associated with the work of the Metropolitan Domestic Water Improvement District and the Town of Marana. - The estimated project management and inspection cost to each of the partners during the planned 15-month construction period is $65,539.54. This represents an estimated cost savings of approximately $100,000 for each partner compared to the utilization of a consultant services project management and inspection team. BACKGROUND OR DETAILED INFORMATION: In a joint regional effort, the Metropolitan Domestic Water Improvement District (Metro Water), the Town of Marana, and the Town of Oro Valley Water Utility have developed an Intergovernmental Agreement relating to the partnership for the design, construction, management, and operation and maintenance of the Northwest Recharge, Recovery and Delivery System (NWRRDS).  This system will deliver and recover stored and recharged Central Arizona Project (CAP) water from recovery wells and deliver it to a shared reservoir.  From this reservoir, Oro Valley will be the lead agency responsible for the construction management and inspection of each parties' booster station and a portion of each parties' pipeline system to deliver and transport their recovered CAP water to their respective service areas. This IGA represents further regional cooperation for the delivery of additional CAP water to Southern Arizona which benefits the aquifer by reducing reliance on groundwater supplies.  The delivery of the Town's CAP water through this partnership agreement saves on capital, as well as operations & maintenance costs as compared to wheeling costs through the Tucson Water system. In addition, the NWRRDS provides for future renewable water supply for our growing community. The major elements of the IGA are as follows: - The term of the agreement is through Construction acceptance and expiration of the Contractors 2-year warranty. - The agreement has a clause to withdraw prior to the commencement of construction. - Oro Valley will be the lead agency responsible for the Construction Management, inspection and final acceptance of the project on behalf of the partners. - Oro Valley will be reimbursed for all costs associated with the work of the Metropolitan Domestic Water Improvement District and the Town of Marana. - The estimated cost to each of the partners during the planned 15-month construction period is $65,539.54. This represents an estimated cost savings of approximately $100,000 for each partner compared to utilization of a consultant services project management and inspection team. Water Utility staff has worked closely with Metro Water and the Town of Marana Water Utility to develop the IGA and project configuration. FISCAL IMPACT: The approval of this IGA will allow the NWRRDS partners to take advantage of additional economies of scale resulting in reduced construction costs.  Additionally, having Oro Valley act as the lead agency on behalf of the partners for construction management and inspection services saves each partner an estimated $100,000 over the 15-month construction period compared to the utilization of a consultant to provide similar professional services. SUGGESTED MOTION: I MOVE to approve Resolution No. (R)21-50, authorizing and approving an Intergovernmental Agreement between the Metropolitan Domestic Water Improvement District, The Town of Marana, and The Town of Oro Valley to accommodate additional partnered water facility construction as part of the Northwest Recharge, Recovery and Delivery System. Attachments NWRRDS Resolution  NWRRDS IGA  Commission Presentation  RESOLUTION NO. (R)21-50 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY RELATING TO THE PARTNERSHIP TO ACCOMMODATE ADD ITIONAL PARTNERED WATER FACILITY CONSTRUCTION AS PART OF THE NORTHWEST RECHARGE, RECOVERY AND DELIVERY SYSTEM WHEREAS, pursuant to ARS § 11-952, the Town of Oro Valley is authorized to enter Intergovernmental Agreements for joint and cooperative action with other public agencies; and WHEREAS, pursuant to ARS § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within and without the Town’s corporate boundaries; and WHEREAS, The Town of Oro Valley Water Utility desires to recover the Central Arizona Project (CAP) water stored underground at the Lower Santa Cruz Replenishment Project , Avra Valley Recharge Project and BKW Farms Groundwater Savings Facility, and to deliver the recovered water to the Northwest Recharge, Recovery and Delivery System (NWRRDS), and then transport the water from the NWRRDS to the Oro Valley Water Service Area; and WHEREAS, it is in the best interest of the Town to enter into the proposed Intergovernmental Agreement with The Metropolitan Domestic Water Improvement District and The Town of Marana to set forth the terms and conditions of the agreement. NOW, THEREFORE, BE IT R ESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Intergovernmental Agreement attached hereto as Exhibit “A” and incorporated herein by this reference, between the Town of O ro Valley and The Metropolitan Domestic Water Improvement District and The Town of Marana regarding the delivery of the Town’s CAP Water is hereby authorized and approved. SECTION 2. The Mayor, the Water Utility Director and other administrative officials are hereby authorized to take such step s as necessary to execute and implement the terms of the agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. All Oro Valley resolutions or motions and parts of resolutions or motions of the Council in conflict with the provision of this Resolution are hereby repealed. SECTION 5. If any section, subsection, sentence, clause, phrase or portion of this Resolution or the Agreement, attached hereto as Exhibit “A”, 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 Town Council of the Town of Oro Valley, Arizona this 3rd day of November, 2021. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Mike Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” 00076451.DOCX /1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY TO ACCOMMODATE ADDITIONAL PARTNERED WATER FACILITY CONSTRUCTION AS PART OF THE NORTHWEST RECHARGE, RECOVERY, AND DELIVERY SYSTEM (NWRRDS) This Intergovernmental Agreement (this “IGA”) is entered into by and between the Metropolitan Domestic Water Improvement District, an Arizona domestic water improvement district (“MDWID”); the Town of Marana, an Arizona municipal corporation (“Marana”); and the Town of Oro Valley, an Arizona municipal corporation (“Oro Valley”). RECITALS A. MDWID, Marana and Oro Valley are parties to that certain intergovernmental agreement entitled “Northwest Recharge, Recovery, and Delivery System (NWRRDS) Intergovernmental Agreement ” made and entered into on April 19, 2017 and recorded in the office of the Recorder of Pima County, Arizona, on April 19, 2017, at Sequence 20171090375 (the “Original IGA”). B. Each of the Parties has stored water undergro und or has utilized a groundwater savings facility for later recovery and use as provided by Arizona law. C. Each Party desires to recover the water stored underground or credited through a groundwater savings facility and utilize that water as provided by Arizona law. D. Each Party desires to work together with the other Parties in good faith to recover and deliver renewable water to foster water resource stability regionally and in each Party’s respective service area. E. To allow for the transportation and use of the recovered water, each of the Parties is currently participating in the design and construction of the NWRRDS Project in the manner described in the Original IGA. F. To allow for the transportation and use of the recovered water, each of the Parties desires to participate in the operation and maintenance of the NWRRDS Project in the manner described in the Original IGA. G. Each of the Parties now desires to take advantage of the economies of scale and to avoid potential construction conflicts by adding additional partnered water facility construction to the NWRRDS Project, to be constructed by the P roject Contractor, administered by Oro Valley, and paid for by the Parties. H. The Parties are authorized to contract for services and enter into agreements with one another for joint and cooperative action pursuant to A.R.S. § 11-952, et seq. 00076451.DOCX /1 2 DEFINITIONS As used in this IGA, the following terms, when capitalized, have the meanings indicated: 1. “Authorized Representative” means the individual, as set forth in Section 6.1 of the Original IGA . 2. “Construction Work” or the “Project” means all work associated under this IGA associated with constructing the additional partnered water facility infrastructure, including but not limited to, all planning, permitting, construction, reconstruction, contract preparation, purchasing, supervision, inspection, accounting and implementation, testing and start-up for the Project as detailed in Exhibits A, B and C, of this IGA, attached to and incorporated by this reference in this IGA, prior to the In-Service Date. 3. “Construction Costs” means the costs of performing Construction Work, as described in Section 7 of the Original IGA. 4. “Force Majeure Event” means any event beyond the reasonable control of a Party, including but not limited to failure of or threatened failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority, and action or non-action by or failure to obtain the necessary authorizations or approvals from any governmental agency or authority not a Party to this IGA, which by exercise of due diligence such Party could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. 5. “In-Service Date” has the meaning set forth in Section 1.12 of the Original IGA. 6. “Notice of Withdrawal” means the written notice that a Party is withdrawing from this IGA. 7. “NWRRDS” or “Northwest Recharge, Recovery, and Delivery System” means the water delivery system, which is composed of, but not limited to, a pipeline, certain land rights, certain well sites, and the forebay site, all as described in Exhibit A of the Original IGA . 8. “NWRRDS Committee” means the committee established pursuant to Section 6 of the Original IGA . 9. “NWRRDS Project” means the construction work or project described in the Original IGA. 10. “Parties ” means collectively, MDWID, Marana, and Oro Valley. Each may be referred to as a “Party.” 11. “Project Contractor” means the contractor selected to construct the Project as described in this IGA and shown in Exhibits A, B and C. 00076451.DOCX /1 3 12. “Project Inspector” means the inspector employed by Oro Valley to ensure the Project Contractor performs work in accordance with the contract documents. The Project Inspector also includes agents hired by Oro Valley to perform construction inspection services. 13. “Project Manager” means the manager employed by Oro Valley to manage the Project as described in this IGA. 14. “Third Party Liability” means any liability arising from a claim brought by a third party not a Party to this IGA in relation to the Design and Construction Work of the Project. AGREEMENT N OW , THEREFORE, based on the foregoing recitals, which are incorporated by reference herein , and in consideration of the matters and agreements set forth in this IGA, the Parties hereby agree as follows: 1. Purpose. This IGA is intended as a supplement to the Original IGA, to address only those MDWID, Marana and Oro Valley facilities constructed as part of the Project pursuant to this IGA. Each Party shall retain ownership of its portion of the facilities that are constructed as part of the Project under this IGA (as described in Section 2 and Exhibits A, B and C) and shall be responsible for the operation and maintenance of its respective facilities constructed as part of the Project under this IGA. Once complete, infrastructure constructed under this IGA is not subject to the provisions of the Original IGA. 2. The Project. The scope of the Project shall include the construction of the following: 2.1. MDWID Facilities: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit A. More specifically the scope of the MDWID portion of the Project includes all work shown between Sta: 50+62.91 to Sta: 18+90.00 At Sta: 18+90.00 provide a 16- inch MJ cap with a 3-inch DVA. All work is shown in detail in Exhibit A. 2.2. Marana Facilitie s: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit B. More specifically the scope of the Marana portion of the Project includes all work shown between Sta: 50+75.53 to Sta: 219+30. At Sta: 219+30 the new pipeline will connect to an existing pipe with a 12”x16” tapping sleeve. All work is shown in detail in Exhibit B . 2.3. Oro Valley Facilities: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit C. More specifically the scope of the Oro Valley portion of the Project includes all work shown between Sta: 0+00 to Sta: 19+00. At Sta: 19+00 provide a 16-inch MJ cap with 3-inch DVA. All work is shown in detail in Exhibit C. 3. MDWID responsibilities. MDWID shall:, in accordance with the [Fee Estimate] attached to and hereby incorporated by this reference in this IGA as Exhibit E. 00076451.DOCX /1 4 3.1. Pay for 1/3 of the cost for incorporation of the MDWID design plans into the integrated partnered final design plans of Marana and Oro Valley under this IGA. 3.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid schedule for elements common to all Parties under this IGA. 3.3. Pay for 100% of the cost to integrate the MDWID work into the Parties’ specifications and bid schedule for those specifications and bid items unique to the MDWID Work and not covered in the Parties’ specifications and bid schedule under this IGA. 3.4. Pay for all permitting necessary for the Project Contractor to construct the MDWID work under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for permitting costs associated with the MDWID Work and providing MDWID with supporting invoices and time sheets, if applicable. 3.5. Prior to the commencement of the C onstruction Work, MDWID shall pay for and provide the Project Manager with all required “PDEQ Approval to Construct” regulatory permits associated with the MDWID related portion of the Construction Work. 3.6. Pay for the construction of the MDWID Work performed by the Project Contractor under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for Construction Costs associated with the MDWID Work and providing MDWID with copies of supporting vendor invoices and time sheets, if applicable. 3.7. Pay for the project management of the MDWID Work performed by the Project Manager under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for project management services associated with the MDWID Work. 3.8. Pay for the construction ins pection of the MDWID Work performed by the Project Inspector and its agents by paying within 7 business days of receipt from Oro Valley of an itemized invoice and supporting documentation in cluding timesheets for each pay period for each invoice for construction inspection services associated with the MDWID Work. 3.9 MDWID shall submit Oro Valley provided documentation to obtain PCDEQ “Approval of Construction” certification for the MDWID portion of the Work. 4. Marana responsibilities . Marana shall:, in accordance with the [Fee Estimate] attached to and hereby incorporated by this reference in this IGA as Exhibit E. 4.1. Pay for 1/3 of the cost for incorporation of the Marana design plans into the integrated partnered final design plans of MDWID and Oro Valley under this 00076451.DOCX /1 5 IGA. 4.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid schedule for elements common to all Parties under this IGA. 4.3. Pay for 100% of the cost to integrate the Marana Work into the Parties’ specifications and bid schedule for those specifications and bid items unique to the Marana Work and not covered in the Parties’ specifications and bid schedule under this IGA. 4.4. Pay for all permitting necessary for the Project Contractor to construct the Marana Work under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for permitting costs associated with the Marana Work and providing Marana with supporting invoices and time sheets, if applicable. 4.5. Prior to the commencement of the Construction Work, Marana shall pay for and provide the Project Manager with all required “PDEQ Approval to Construct” regulatory permits associated with the Marana related portion of the Construction Work. 4.6. Pay for the construction of the Marana Work performed by the Project Contractor under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for Construction Costs associated with the Marana Work and providing Marana with copies of supporting vendor invoices and time sheets, if applicable. 4.7. Pay for the project management of the Marana Work performed by the Project Manager under this IGA within 7 business days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for project management services associated with the Marana Work. 4.8. Pay for the construction inspection of the Marana Work performed by the Pro ject Inspector and its agents by paying within 7 business days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for construction inspection services associated with the Marana Work. 4.9 Marana shall submit Oro Valley provided documentation to obtain PCDEQ “Approval of Construction” certification for the Marana portion of the Work. 5. Oro Valley responsibilities. Oro Valley shall: 5.1. Pay for 1/3 of the cost for incorporation of the Oro Valley design plans into the integrated partnered final design plans of MDWID and Marana under this IGA. 00076451.DOCX /1 6 5.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid schedule for elements common to all Parties under this IGA. 5.3. Pay for 100% of the cost to integrate the Oro Valley Work into the Parties’ specifications and bid schedule for those specifications and bid items unique to the Oro Valley Work and not covered in the Parties’ specifications and bid schedule under this IGA. 5.4. Pay for all permitting necessary for the Project Contra ctor to construct the Oro Valley Work under this IGA. 5.5. Prior to the commencement of the Construction Work, Oro Valley shall pay for all required “PDEQ Approval to Construct” regulatory permits associated with the Oro Valley related portion of the Construction Work. 5.6. Pay for the construction of the Oro Valley Work performed by the P roject Contractor for Construction Costs associated with the Oro Valley Work. 5.6. Pay for the project management of the Oro Valley Work performed by the Project Manager under this IGA for project management services associated with the Oro Valley work. 5.7. Pay for the construction inspection of the Oro Valley Work performed by the Project Inspector and its agents for construction inspection services associated with the Oro Valley Work. 5.8. Perform the following design plan preparation, procurement, project management and construction inspection services for the work detailed in Exhibit s A, B and C. 5.8.1. Provide design plan integration services to aggregate the Parties’ design plans, specifications and bid schedules in a single bid document suitable for bidding. 5.8.2. Provide cost proposals to accomplish the items in Section 5.8.1 to the NWRRDS Committee for review prior to authorization of the work. 5.8.3. Provide procurement services in accordance with applicable law. This scope of work includes preparation of procurement language, contract documents, advertising for competitive bidding, evaluation of bids and award of contract for the Construction Work under this IGA. A. Provide procurement language and contract documents to the NWRRDS Committee for review prior to bidding. B. Provide tabulated bid results to the NWRRDS Committee for review prior to contract award. 00076451.DOCX /1 7 5.8.4 Other matters as set forth in this IGA or as brought to the NWRRDS Committee by Oro Valley. 5.8.5 Provide Project Manager services on behalf of the Parties to include the following: A. Management of the Construction Work. B. Scheduling and preparation of review materials for NWRRDS Committee meetings. C. At each meeting of the NWRRDS Committee, supply the NWRRDS Committee with information on any matters which may substantially affect the construction of the Project. D. Review and approve Project Contractor invoicing. E. Prepare and distribute a monthly statement to each Party specifying expenditures for the prior month for that Party, and the distribution of these expenditures to each participating Party. F. Obtain all permits, licenses, approvals, contracts and insurance as required to perform and complete all C onstruction Work, except for the permits as described in 3.5 and 4.5. G. Follow Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board (GASB), Arizona Revised Statutes (ARS) and engineering practices. H. Prior to construction of the Project, Oro Valley shall provide a proposed construction budget to the other Parties. The budget shall include each Party’s estimated share of the costs. Each budget shall be submitted to the NWRRDS Committee for review. I. Approve change orders in accordance with this subsection. 5.8.5.I.1 All change orders shall be discussed during regularly scheduled meetings during the construction of the Project. The meetings shall be attended by a representative of each Party appointed by the Authorized Representative for that Party. The frequency of the meetings shall be determined by the representatives of the Parties. In the event of disagreements, the issue shall be brought before the NWRRDS Committee and a decision shall be made by a vote of the Parties in accordance with section 6.6 of the Original IGA. 00076451.DOCX /1 8 5.8.5.I.2. Oro Valley may authorize change orders on behalf of that Party’s portion of the Project if the aggregated increased cost of all change orders for the affected Party is less than five percent (5%) of that Party’s total project award amount. If the aggregated change orders are greater than 5% of the affected Party’s total project award, Oro Valley shall provide notice of the change order to the Parties and shall provide it in advance of the meeting where the change order will be considered. Oro Valley shall authorize such change orders if the change order is approved by those representatives of the Parties in attendance at the meeting where the change order is considered, provided that a Party may provide written approval of or objection to the change order in lieu of attending the meeting. 5.8.5.I.3. Notwithstanding subsection 5.8.5.I.2, if Oro Valley authorizes a change order for work outside the scope of the Project’s final design plans in any dollar amount, Oro Valley shall provide notice of the approved change order to the applicable Party(ies) for review. The applicable Party(ies) shall have the right to reject any change order outside of the scope of the Project’s final design plans and to refuse payment for it. 5.8.5.I.4. Notwithstanding subsection 5.8.5.I.2, if Oro Valley determines that a change order involves a safety issue, an emergency, or that allowing time for consideration of the change order at a meeting would cause a significant increase in costs associated with the change order, Oro Valley may authorize the change order prior to the meeting and shall notify the Parties of the change order as soon as practicable. J. The Project Manager shall maintain records, documents, plans and information directly or indirectly pertinent to the performance of the Construction Work under this IGA in accordance with applicable Arizona records retention schedules. The P arties shall have access to all records for the purpose of inspection, audit and copying during normal business hours for as long as the records are maintained. 5.8.6. Provide project inspection services on behalf of the Parties to include the following: A. Inspection services will be performed by the Project Inspector or its agent. B. Other types of inspection services will include special inspections for geotechnical work, reinforcing steel grade and placement, certification 00076451.DOCX /1 9 of concrete strength, etc. Costs for inspection services will be shared equally between Parties. C. It is understood that the other Parties’ in-house inspection, engineering, or project management staff or their representatives may visit the Project site from time to time. At no time are the Parties’ staff other than the Project Inspector or Project Manager permitted to provide direction to the Project Contractor or the Project Contractor’s agents. All Project concerns shall be brought to the attention of the Project Inspector or Project Manager for discussion and resolution. 5.8.7. Notwithstanding anything to the contrary in this IGA, if Oro Valley determines that any issue during the construction of the Project involves a safety issue or an emergency, as determined by Oro Valley in its reasonable discretion, Oro Valley may take action to address such issue. Such action will be reported to the Authorized Representative for each Party in a timely manner. 5.8.8. Provide Sealed As-Built files in electronic PDF form to MDWID and Marana upon completion of the work. 5.8.9 Provide Parties with Operations and Maintenance Manuals (hard and electronic), any spare parts as specified in the specification and field training as specified in the contract documents. 5.8.10 Provide Parties with copies of all reports necessary for Parties to obtain PCDEQ “Approval of Construction” certification. 6. Commissioning of Facility. 6.1. The startup and commissioning of the Parties’ facilities shall be scheduled by the Project Manager and respective Party. The Project Manager will coordinate the startup date and time with the Project Contractor. 7. Warranty. 7.1. The project warranty shall remain in effect until the second anniversary of final payment to the Project Contractor. Warranty claims with respect to the Parties’ facilities constructed under this IGA shall be made in writing to the Project Manager. A representative of the affected Party shall work closely with the Project Manager to ensure that warranty work meets the performance standard of the contract documents. 8. Term and Withdrawal. 8.1. This IGA shall become effective once fully executed and shall continue in effect until the second anniversary of final payment to the Project Contractor. Oro Valley will record the fully executed original with the office of the Pima County Recorder. 00076451.DOCX /1 10 8.2. The Parties may terminate this IGA at any time by providing a Notice of Withdrawal, as defined under Definition 6 of this IGA, to all Parties 8.3. Upon ninety (90) days’ written notice, a Party may withdraw from this IGA subject to the following. 8.3.1 Notwithstanding anything to the contrary in this IGA, (i) if a Party, at the sole discretion of the Party, withdraws from this IGA prior to the award of the construction contract, the Party shall be responsible for any and all additional costs related to the revised and modified aggregation of the design plans and specifications of the Partnered water facility construction as described in Section 2 and Exhibits A, B and C ; and (ii) if a Party withdraws from this IGA after the award of the construction contract the withdrawing Party shall be responsible for the completion of its respective infrastructure construction as described in Section 2 and Exhibits A, B and C. Any party withdrawing from this IGA pursuant to Section 8.3 shall be obligated to pay for its share of all costs due from such Party during the period in which it participated in this IGA even if such costs or expenses are allocated after the effective date of the Party’s withdrawal. 8.4. Each Party’s obligations shall survive the termination of this IGA. 9. Construction of this IGA. 9.1 Entire Agreement. This instrument constitutes the entire agreement between the Parties pertaining to the subject matter of this IGA. 9.2. Exhibits. Any exhibits to this IGA are incorporated in this IGA by this reference. 9.3. Amendment. This IGA may be modified, amended, altered, or changed only by written agreement signed by all Parties. 9.4. Construction and interpretation. All provisions of this IGA shall be construed to be consistent with the intention of the P arties as expressed in the Recitals section of this IGA. 9.5. Severability. A declaration by statute or judicial decision that any provision of this IGA is invalid or void shall have no effect on other provisions that can be given effect without the invalid or void provision, and to this extent the provisions of this IGA are severable. If any provision of this IGA is declared invalid or void, the Parties agree to meet promptly in an attempt to reach an agreement on a substitute provision. 9.6. Conflict of interest. This IGA is subject to the provisions of A.R.S. § 38-511, which provides for cancelation in certain instances involving conflicts of interest. 00076451.DOCX /1 11 10. Legal Jurisdiction. Nothing in this IGA shall be construed as either limiting or extending the legal jurisdiction of the P arties. 11. No Joint Venture . It is not intended by this IGA to, and nothing contained in this IGA shall be construed to, create any partnership, joint venture or employment relationship between the Parties or create any employer-employee relationship between one P arty and another Party’s employees. Except as expressly set forth in this IGA, no Party shall be liable for any debts, accounts, obligations, or other liabilities whatsoever of another Party, including (without limitation) another P arty’s obligation to withhold Social Security and income taxes for itself or any of its employees. 12. No Third-Party Beneficiaries . Nothing in the provisions of this IGA is intended to create duties or obligations to or rights in third parties not parties to this IGA or to affect the legal liability of either Party by imposing any standard of care different from the standard of care imposed by law. 13. Compliance with Laws . The Parties shall comply with all applicable federal, state, and local laws, rules, regulations, standards, and executive orders, without limitation to those designated within this IGA. 13.1. Anti-Discrimination. The provisions of A.R.S. § 41-1463 and Executive Order Number 99-4 issued by the Governor of the State of Arizona are incorporated by this reference as a part of this IGA. 13.2. Americans with Disabilities Act. This IGA is subject to all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. 13.3. Workers’ Compensation. An employee of either Party shall be deemed to be an “employee” of both public agencies, while performing pursuant to this IGA, for purposes of A.R.S. § 23-1022 and the Arizona Workers’ Compensation laws. The primary employer shall be solely liable for any workers’ compensation benefits, which may accrue. Each Party shall post a notice pursuant to the provisions of A.R.S. § 23-1022(E) in substantially the following form: All employees are hereby further notified that they may be required to work under the jurisdiction or control or within the jurisdictional boundaries of another public agency pursuant to an intergovernmental agreement or contract, and under such circumstances they are deemed by the laws of Arizona to be employees of both public agencies for the purposes of workers’ compensation. 14. Insurance . 14.1 Unless otherwise specified by the NWRRDS Committee pursuant to Section 14.2, Oro Valley shall require any party performing Design and Construction Work to procure and maintain in force during the performance of Design and Construction Work all required Insurance as set forth in Exhibit D . 00076451.DOCX /1 12 Any required general liability policy required hereunder shall name the Parties as additional insureds. Proof of insurance satisfactory to Oro Valley shall be submitted to Oro Valley before any Design and Construction Work commences. 14.2 The NWRRDS Committee may, at any time, increase the policy limits and/or determine appropriate deductibles or retentions. Action by the NWRRDS Committee shall be by vote in accordance with Section 6.6 of the Original IGA. In the event the NWRRDS Committee is unable to agree upon any insurance matters, Oro Valley, pending the resolution of such disagreement, may procure or cause to be procured, such policies of insurance as in its best judgment are necessary and required to protect the Parties. 14.3 Oro Valley, as the lead agency with respect to this IGA, shall include each Party as an additional insured on Oro Valley’s insurance policy during the term of this IGA. 15. Waiver. Waiver by any Party of any breach of any term, covenant, or condition of this IGA shall not be deemed a waiver of any other term, covenant, or condition, or any subsequent breach of the same or any other term, covenant, or condition of this IGA. 16. Force Majeure . A Party shall not be considered in default under this IGA (other than obligations of said Party to pay costs and expenses) when a failure of performance is due to a Force Majeure Event. 17. Authorization and Approvals. 17.1. Each Party shall be responsible for obtaining, at its own expense, any authorizations and approvals required for its participation or its performance under this IGA, and each Party shall keep the other Parties informed of its applications therefor and authorizations issued in connection therewith. 17.2. A Party’s failure to make sufficient appropriations to contribute its share of costs in accordance with this IGA will be treated as a Notice of Withdrawal by that Party. 18. Liability: 18.1. Except as provided in this Section 18 and subject to any right of indemnification provided in this Agreement, the costs of discharging all Third-Party Liability imposed upon one or more of the Parties, for which payment is not made by Construction Insurance, Operating Insurance, or other applicable insurance required by this Agreement, shall be allocated among the Parties pursuant to the allocations set forth in Exhibit B of the Original IGA. 18.2. In the event any third-party institutes an action against any Party(s) for claims arising from the activities undertaken pursuant to this Agreement, the Parties named in the action shall meet to determine the procurement of legal counsel and the steps to take to defend against the action. 00076451.DOCX /1 13 18.3. Any party withdrawing from this Agreement is responsible for financial impacts and damages attributable to its own conduct and actions even after the Party withdraws from the Agreement. 19. Governing Law; Disputes . 19.1. This IGA shall be governed by the laws of the State of Arizona . 19.2. If there is a dispute between the Parties arising under this IGA, the Parties agree that they shall first attempt to resolve the dispute by working together in good faith to come to a consensus. If that fails, the Parties agree that they shall take a vote on the disputed issue through their Authorized Representatives with each Party having one vote and the issue being decided by a majority of the votes . Any Party that brings a lawsuit against another Party or Parties and that does not prevail, shall pay all fees and courts costs, including attorneys' fees, incurred by the other Party or Parties (as applicable) to this IGA in that lawsuit. 20. Actions Pending Resolution of Disputes . 20.1 Pending the resolution of a dispute pursuant to Section 1 9, the Project Manager shall proceed with Construction Work in a manner consistent with this IGA and generally accepted accounting and engineering practices, and all Parties shall make the payments required to perform such Construction Work in accordance with this IGA. Amounts paid by the Parties pursuant to this Section 20 during the pendency of such dispute shall not be subject to refund except upon a final determination that the expenditures were not made in a manner consistent with this IGA and generally accepted accounting and engineering practice s. 21. N otices . 21.1 Except as set forth in Section 21.1A, any notice, demand, or request provided for in this IGA shall be in writing and shall be deemed properly served, given or made if delivered in person or sent by registered or certified mail, postage prepaid, to the persons specified below: A. Informal communications of a routine nature involving NWRRDS Committee matters shall be made in such manner as the NWRRDS Committee shall arrange. B. Any Party may, at any time, by notice to all other P arties, designate different or additional persons or different addresses for the giving of notices hereunder. 00076451.DOCX /1 14 Town of Oro Valley Water Utility: 11000 N. La Cañada Dr. Oro Valley, AZ 85737 Attn: Director of Oro Valley Water Utility Town of Marana: Office of the Town Clerk 11555 W. Civic Center Dr. Marana, AZ 85653 Attn: Director of Town of Marana Water Department Metropolitan Domestic Water Improvement District: 6265 N La Cañada Drive Tucson Arizona, 85704 Attn: General Manager 00076451.DOCX /1 15 TOWN OF MARANA Ed Honea, Mayor Date: _______________________ ATTEST Town Clerk Date: ______________________ 00076451.DOCX /1 16 METROPOLITIAN DOMESTIC WATER IMPROVEMENT DISTRICT Judy Scrivener, Chair of the Board Date: _______________________ ATTEST Clerk of the Board Date: _______________________ 00076451.DOCX /1 17 TOWN OF ORO VALLEY Joseph Winfield, Mayor Date: _______________________ ATTEST Michael Standish, Town Clerk Date: _______________________ 00076451.DOCX /1 18 INTERGOVERNMENTAL AGREEMENT D ETERMINATION The foregoing intergovernmental agreement among the METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, the TOWN OF MARANA , and the TOWN OF ORO VALLEY has been reviewed pursuant to A.R.S. § 11-952 by the undersigned, who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to the Party to this intergovernmental agreement represented by the undersigned. M ETROPOLITAN D OMESTIC WATER IMPROVEMENT DISTRICT: Legal Counsel Date: __________________ TOWN OF M ARANA: Jane Fairall Town Attorney Date: __________________ TOWN OF ORO VALLEY: Tobin Sidles Oro Valley Legal Services Director Date: __________________ 00076451.DOCX /1 19 Exhibit “A” “MDWID” General Arrangement 00076451.DOCX /1 20 Exhibit “B” “Marana” General Arrangement 00076451.DOCX /1 21 Exhibit “C” “Oro Valley” General Arrangement 00076451.DOCX /1 22 Exhibit “D” Construction Insurance Requirements D.1. General Terms. Contractor shall not commence work under the Construction Agreement until Contractor (i) has obtained at its expense all insurance required and (ii) has given the Project Manager a Certificate of Liability Insurance evidencing the type, amount, coverage, effective dates, and dates of expiration of the required policies and identifying Parties as additional insureds, loss payees and certificate holders, as applicable. The insurance policies shall be issued by an insurance company acceptable to the Project Manager and lawfully authorized to do business in the State of Arizona. All insurance policies required, other than Worker’s Compensation and Employer’s Liability, shall name all Parties as additional insureds and loss payees, as applicable, on a primary, non-contributory basis, irrespective of any such insurance that all Parties might carry on their own behalf. All insurance policies required shall provide that the policies will not be subject to cancellation, termination, or modification except after thirty (30) days prior written notice to the Project Manager and shall provide for waiver of subrogation against all Parties. Such required coverage shall remain in effect until the later of (i) final payment for the work under the Construction Agreement or (ii) termination of the Construction Agreement. D.2. Coverage. The Contractor shall purchase and maintain the following coverage during the term of the Construction Agreement: D.2.1. Commercial General Liability for claims of damage for bodily injury, accidental death, property damage, premises/operations (including fire, theft, vandalism, falsework, temporary buildings and debris removal), explosion/collapse, independent contractors, products/completed operations , contractual liability, personal injury and advertising liability and underground special hazards (including (i) injury to or destruction of wire, conduits, gas, water and petroleum pipes, electric, telephone, telegraph and signal cables, sewers, drains o r any apparatus in connection therewith or any other matter, below the surface of the ground, arising from and during the use of mechanical equipment for the purpose of excavating or drilling or boring in streets or highways or otherwise; or injury to or d estruction of property at any time resulting therefrom and (ii) liability arising out of collapse of or structural injury to any building, street or structure due to excavation, tunneling, pile driving, trenching, jacking, boring or moving, shoring, underpinning, raising or demolition of any building or structure or removal or rebuilding of any structural support thereof), on an occurrence basis with limits of liability not less than the following: General Aggregate $2,000,000 Each Occurrence $1,000,000 Fire Damage (any one fire) $50,000 Medical Expenses (any one person) $5,000 00076451.DOCX /1 23 D.2.1.1. Automobile Liability for any Auto, Combined Single Limit (per occurrence) with $2,000,000 limits. D.2.1.2. Worker’s Compensation and Employer’s Liability at the current Arizona statutory minimums. D.2.1.3. Excess or Umbrella Liability Insurance. In the event C ontractor does not have coverage with the above minimum limits, C ontractor may obtain such coverage through an Excess or Umbrella Liability Policy. Consultant Insurance Requirements D.3. General Terms. Consultant shall not commence work under this Agreement until Consultant (i) has obtained at its expense all insurance required under this Section and has given the Project Manager a Certificate of Liability Insurance (ACCORD form or equivalent approved by the Project Manager) evidencing the type, amount, coverage, effective dates, and dates of expiration of the required policies and identifying Parties as additional insureds. The insurance policies shall be issued by a Standard & Poor’s secure rated insurance company reasonably acceptable to the Project Manager and lawfully authorized to do business in the State of Arizona. All insurance policies required under this Section, other than Worker’s Compensation and Employer’s Liability and Professional Liability, shall name the Parties as additional insureds on a primary, non-contributory basis, irrespective of any such insurance that the Parties might carry on their own behalf. Consultant shall provide a copy of the actual additional insured coverage policy endorsement to the Project Manager. The Parties shall be named as certificate holders on Consultant’s Professional Liability insurance policy. All insurance required under this Section shall provide that the policies will not be subject to cancellation, termination, or modification except after thirty (30) days prior written notice to the Project Manager and shall provide for waiver of subrogation against the Parties. All such insurance required under this Section shall remain in effect until the later of (i) final payment for the work under this Agreement or (ii) termination of this Agreement; provided, however, Consultant shall maintain its Professional Liability policy or obtain “tail coverage” that is specific this project only for a period of Five (5) years commencing from such later date . D.4. Coverage. Consultant shall purchase and maintain the following coverage during the term of the Agreement: D.4.1. Commercial General Liability for claims of damage for bodily injury, accidental death, property damage, premises/operations, independent contractors, products/completed operations, contractual liability, personal injury and advertising liability writ ten on an occurrence basis with limits of liability not less than the following: General Aggregate $2,000,000 Each Occurrence $1,000,000 Fire Damage (any one fire) $ 50,000 00076451.DOCX /1 24 Medical Expense (any one person) $ 5,000 D.4.2 Automobile Liability for Any Auto, Combined Single Limit (per occurrence) with $2,000,000 limits; D.4.3 Worker’s Compensation and Employer’s Liability at the current Arizona statutory minimums; and D.4.4 Professional Liability at $2,000,000 per claim. D.4.5 In the event Consultant does not have coverage with above minimum limits, Consultant may obtain such coverage through an Excess or Umbrella Liability policy. 00076451.DOCX /1 25 Exhibit “E” “Fee Estimate” Peter A. Abraham, P.E. Water Utility Director Water Utility Commission October 11, 2021 Oro Valley Water Utility Update, Discussion & Possible Action on NWRRDS Supplemental Agreement NWRRDS Supplemental IGA Goals: Simplify construction coordination Allow all partners to have beneficial occupancy of the infrastructure at the same time Take advantage of economies of scale IGA Details Oro Valley becomes lead agency for supplemental IGA Project management by Oro Valley Inspected and accepted on behalf of the partners by Oro Valley Partners reimburse Oro Valley for all costs associated with work related to the partners Agreement was completed July of 2021 Engineers Estimate for OV Cost of Service OV cost of service to provide Construction Services Engineers Estimate for Consultant Cost of Service Consultant cost of service to provide construction services Discussion & Possible Action Discussion Possible Action I move to recommend forwarding the NWRRDS Supplemental Agreement to Town Council for Consideration of Approval.    Town Council Regular Session 1. Meeting Date:11/03/2021   Submitted By:Kristy Diaz-Trahan, Parks and Recreation Department:Parks and Recreation SUBJECT: DISCUSSION AND POSSIBLE ACTION ON THE EL CONQUISTADOR 36 HOLE GOLF COURSE, IRRIGATION SYSTEM CAPITAL IMPROVEMENT PROJECT RECOMMENDATION: Staff recommends Council discuss and consider the presented options and provide direction regarding the El Conquistador 36 Hole Golf Course irrigation system Capital Improvement Project.  EXECUTIVE SUMMARY: At the May 5, 2021 Regular Town Council meeting, Council approved Ordinance No. (O)21-05, broadening the use of the revenue resulting from the 0.5 percent sales tax previously utilized exclusively for the Community Center Fund. The Council subsequently specified that the broadening of this use was intended to allow for bond financing of Parks and Recreation capital projects.   As a result of that direction, the FY 21/22 budget includes $25 million in projected bond proceeds to finance Parks and Recreation capital projects. Included within the list of potential projects, and previously budgeted due to prior Council direction, was the replacement of the irrigation systems for both the Conquistador and Cañada golf courses.   In the spring, the Town solicited bids for the replacement of just the Cañada course, receiving only one bid at $3.72 million, which was subsequently rejected. Given the unexpected high bid, the Town determined that we may have better success if both courses were bid together. In late September following a competitive solicitation, the Town received two proposals for the replacement of the irrigation systems for both the Cañada and Conquistador courses. The apparent low bidder is Wadsworth Golf Construction Company with a total base bid of $7.8 million (exclusive of $200,000 for range tee work and project contingency). The other bidder was in the same general range. Given the last bid, the Town anticipated the irrigation system replacement at $3M per course, or a total of $6 million. While the proposals received are notably higher than what was budgeted, they are consistent with the bid received last spring for the Cañada course only.    The Town’s Irrigation Design Consultant affirms that the cost is competitive in today’s bidding environment. Irrigation costs are rising due to escalating material prices and contractor availability. Similar irrigation replacement projects in the desert Southwest are being bid at $4 million per 18-holes.   The Town is in a strong financial position and can currently afford to absorb the additional cost beyond the original budget using American Rescue Plan Act (ARPA) revenue replacement funds, which are unrestricted as to their use. (According to staff calculations, $4.6 million qualifies as revenue replacement under ARPA.) An estimated $4.5 million of the $25 million Parks and Recreation bond was planned for use towards the irrigation system replacement. If the project moves forward, staff is proposing to use a portion of ARPA revenue replacement funds to supplement this estimate so that the amount of revenue from the bond will not impact other Council Parks and Recreation capital priorities.     Due to the significantly higher-than-expected cost, this matter is presented to Council for policy direction.   BACKGROUND OR DETAILED INFORMATION: The El Conquistador property opened as an 18-hole golf course in 1982. In the early 1990’s the course was renovated to become two 18-hole golf courses. During time of construction, new irrigation was added to the existing irrigation system rather than replacing the entire system “as new.”   Current Age of Irrigation Systems  Conquistador course: 31-41 years Cañada course: 31-41 years   Irrigation System Evaluation Over the past five years, the Conquistador and Cañada courses have experienced a combined 175 main line breaks (map in Attachment 1). These breaks have occurred on nearly every hole and vary in severity and impact. During this timeframe over $200,000 has been spent on irrigation repair. It is estimated over 5 million gallons of water have been lost due to these irrigation breaks. Estimated water loss is based on the general size of the break and the operator’s best guess as to how long the leak had been occurring. The Town’s Irrigation Design Consultant is aware of no other facility in Arizona that has had as many irrigation breaks; the consultant opined that this is an alarming number of breaks over a five-year period.   There is general agreement by the Town, Indigo Golf Partners, the irrigation designer and the previous golf course operator that the current irrigation systems for both 18- hole courses are far beyond their useful life. The age and condition of the system creates pressure and flow challenges in several areas.     Holes that are lower in elevation than their pump stations are particularly prone to failure given the strain the additional pressure puts on the heads and piping. Several holes on the south end of the Conquistador course have been tested at 20-40 percent above normal pressure due in part to elevation change. Such issues are clearly discernable with the increased number of breaks occurring on holes 15 and 16 within the main line break map.   Similar problems arise on the Cañada course where water flow and pressure have become problematic when watering the holes south of Lambert Lane. The main line break map indicates an increased occurrence in main line breaks on holes 9-14.   The installation of one or more pressure regulating valves would help by regulating water flow. However, the new valves would still be installed into the old pipes. The pipes have been running with high pressure for so long that they are fragile and would remain susceptible to breaking. The Town’s Irrigation Design Consultant highly advises that it is better to replace entire sections of systems with new components than to add new components to old systems.   Current water flow has been measured in areas at 1100 gallons per minute. A fully functioning irrigation system produces roughly 2400 gallons per minute. Low pressure within an irrigation system typically leads to wet and dry patterns that then require more water use to keep the course in a healthy and playable condition. Renovation of some or part of the system to produce increased water flow rates may prove problematic on holes which fall south of the pump stations, as increased water flow and pressure can cause movement and vibration in the piping infrastructure which leads to further breaks and repairs.   Catastrophic Failure Risk and Potential Consequences A catastrophic failure would be considered any situation where water would not be able to be delivered to a significant portion of the course for irrigation purposes, potentially risking the loss or near-loss of specific fairways, tees and greens. On the Conquistador course, a catastrophic failure would be a main line break coming from the Pump Station on #5 running under Naranja Road. This would lead to 15 of the 18 holes not being able to receive water. On the Cañada course, a catastrophic failure would be a main line break running either under La Cañada Drive or Lambert Lane which would affect up to 9 holes. In either scenario, repair would be delayed due to inaccessibility of the pipe under main roads. During that time, the golf course could see major turf loss. Costs would then include both repair of the irrigation system and restoration of turf conditions.   The likelihood of a catastrophic break is difficult to quantify and usually coincides with the age of the system itself. Golf courses use a chart provided by the Association of Golf Course Architects as a guide to life cycle planning and replacement (Guide in Attachment 2). The chart indicates that the irrigation system life cycle is between 10- 30 years. The irrigation systems of both courses exceed the expected life cycle even factoring in ideal location, quality of materials and installation and maintenance practices.    Some recent examples of catastrophic failures are Alta Mesa Country Club in Mesa, Arizona where a 20-year-old irrigation system led to a main line break two days prior to over-seeding. This mainline break was at a road crossing which the club decided 20 years ago not to replace during the irrigation renovation. The club had to replace a gate valve immediately and did not have time to fix the pipes prior to over-seeding.  Another example of a catastrophic failure was at Sun Lakes in Sun Lakes, Arizona where the pump station was flooded prior to over-seeding resulting in all motors and panel loss. The pump station had to be completely renovated with parts and pieces as they became available. Such failures can lead to a substantial loss of turf cover. Recovery from this damage then requires more than simply re-irrigating the grass. At a minimum, the turf would need to be removed from play while additional seeding, fertilization and other care may be required. The courses were notably impacted by these failures due to the dual nature of their impacts – additional expenses related to irrigation system repair and the replacement cost of seed at the same time the courses are experiencing a loss of revenue from reductions in rounds played.   For the Conquistador and Cañada courses, a catastrophic failure would negatively impact turf conditions leading to less member play, unfavorable course reviews and ultimately a reduction in public play. The loss in revenue is difficult to quantify as it is based on the time of year in which a failure occurs. A failure during over-seeding could result in $500,000 or more in lost revenue plus the replacement cost of seed (estimated at $4,000 per hole plus water costs). A failure during the summer months could result in the loss of $100,000 or more in lost revenue plus the restoration costs to restore turf conditions (estimated at $2 per square foot in sod and $0.50 per acre for sprigging plus water costs).   Catastrophic failure is not the only threat posed by an outdated irrigation system. The irrigation system has been a concern to the membership for the past several years. While difficult to quantify, Indigo Golf Partners estimates that there could be a reduction in membership due to frustration with turf conditions which could conservatively equate to a loss of $50,000 annually (about 12-14 members). Additionally, the impact of a poorly functioning irrigation system has the potential to damage the reputation of both courses and lead to a reduction in outside play and corresponding revenue.   In FY 2020/2021, irrigation repairs and maintenance were $89,000. Based on their professional experience, Indigo estimates that without an irrigation system replacement, these costs will increase roughly 15-20 percent annually over current costs.   Feasible Options Indigo Golf Partners and the Town of Oro Valley have identified three options for consideration regarding this project.    Option 1 - Proceed with full irrigation replacement project Both the Conquistador and Cañada courses have experienced a significant number of main line breaks over the past five years and both systems are beyond their useful life and are of increasing risk of one or both systems failing completely. Such failure has the potential to cause significant damage to the golf course(s). While the bids that were received are higher than all had hoped, they are in line with other projects being bid in the Southwest. The Town’s Irrigation Design Consultant has recently informed the Town that courses in Scottsdale are bidding projects for 2023 and the contractors have indicated that bid pricing may be increasing by up to 30% by that time. The Town’s Chief Procurement Officer has advised against rebidding the project next year based on his assessment of market conditions and contractor interest, and believes that prices will not be notably different, even if the price of PVC pipe or other materials begins to stabilize, as trade labor continues to increase in cost. He also noted that a third rebid could discourage the relatively small pool of course irrigation contractors from responding or result in a bid premium being included as they may have reservations about the credibility of another bid attempt by the Town.    Option 2 - Complete 18 holes of the project A second option would be to only complete 18 holes of the project. The Cañada course has experienced 20 percent more main line breaks than the Conquistador course over the last five years. Fully replacing Cañada’s irrigation system would be a form of triage that addresses the system with the most failures. There would still be exposure on the Conquistador course for system failure as well as increasing maintenance and repair costs leading to a significant financial impact to the facility.  With increasing costs of construction, the cost to re-bid the 2nd course and further move the project out will likely increase the overall project price for the 36 holes to over $10 million. The additional downside to this option mirrors the comments in Option 1 above regarding the perception of contractors regarding a third bid on this project. Unfortunately, the Town cannot use the recent bidding process and negotiate the project down as it is precluded by state law. Estimated cost for the Cañada course only: $3.95 million.    Option 3 – Partial Irrigation System Replacement to Mitigate Catastrophic Loss Including Main line Section Running Underneath Major Roadways A third option would be to replace sprinkler heads, control valves, and install new irrigation piping on Conquistador holes 1, 6, 17 and 18 and Cañada holes 9, 10, 11, 12, 13 and 14 as well as replacing sections of main line that run underneath major roadways (La Cañada, Lambert, and Naranja). This option would address a “worst case” scenario in terms of catastrophic failure and would assist with flow and pressure problems to the southernmost holes on each course. This option would change the characteristics of each course as a partial new system is infused with a partial existing system. By changing the characteristic of flow, pipe is likely to move more when water is running which may lead to increased main line failure and repair costs than is currently being experienced. Pressure regulating valves would be put in place to assist with correcting water pressure and flow. According to the Town’s Irrigation Design Consultant, a reduction in the scope of work on the project may lead to challenges in securing a contractor to complete the project due to the current amount of irrigation projects available in the industry and the perceived smaller project size. This opinion is shared by the Town’s Chief Procurement Officer. Estimated cost of $2.92 million FISCAL IMPACT: Estimated range between $2.92 million to $8 million  SUGGESTED MOTION: I MOVE to direct the Town Manager to: Attachments Mainline Break Map  ASGA Lifecycle Chart  Staff Presentation  I GCSA i, GOLF COURSE ITEMS HOW LONG SHOULD PARTS OF THE GOLF COURSE LAST? No two golf courses are alike except for one thing: deferring replacement of key items can lead to greater expense in the future, as well as a drop in conditioning and player enjoyment. The following information represents a realistic timeline for each item's longevity. Component life spans can vary depending upon location of the golf course, quality of materials, original installation and past maintenance practices. The American Society of Golf Course Architects (ASGCA) encourages golf course leaders to work with an ASGCA member, superintendents and others to assess their course's components. ITEM YEARS Greens (1) Bunker Sand Irrigation System Irrigation Control System Pump Station Cart Paths - asphalt (2) Cart Paths - concrete Practice Range Tees Tees Corrugated Metal Pipes Bunker Drainage Pipes (3) Mulch Grass (4) 15-30 years 5- 7 years 10- 30 years 10- 15 years 15-20 years 5 - 10 years (or longer) 15 - 30 years (or longer) 5 -10 years 15- 20 years 15-30 years 5 -10 years 1 - 3 years Varies NOTES: (1) Several factors can weigh into the decision to replace greens: accumulation of layers on the surface of the original construction, the desire to convert to new grasses and response to changes in the game from an architectural standpoint (like the interaction between green speed and hole locations). (2) Assumes on-going maintenance beginning 1 - 2 years after installation. (3) Typically replaced because the sand is being changed - while the machinery is there to change sand, it's often a good time to replace the drainage pipes as well. (4) As new grasses enter the marketplace - for example, those that are more drought and disease tolerant - replanting may be appropriate, depending upon the site. ASGCA thanks those at the USGA Green Section, Golf Course Builders Association of America, Golf Course Superintendents Association of America and various suppliers for their assistance in compiling this information. The materials presented on this chart have been reviewed by the following Allied Associations of Golf: GOLF COURSE SUPERINTENDENTS ASSOC!ATION OF AMER!CA Club Managers Association of America � ­ � GCBAA" ✓ .,,_ . . .. For more information, contact ASGCA at (262) 786-5960 or visit www.ASGCA.org DATA COMPILED BY ASGCA, 125 NORTH EXECUTIVE DRIVE, SUITE 302, BROOKFIELD, WI 53005 .. El Conquistador Golf 36-hole Irrigation System Capital Improvement Project November 3, 2021 El Conquistador Golf Course Background Nearly 40 years ago, the El Conquistador property opened its 18-hole golf course Approximately 10 years later the property added an additional 18-hole course The Town of Oro Valley purchased the property and associated golf courses in 2015 The fall of 2018 Town Council approved a framework for the operation of 36-holes of golf which included irrigation replacement The spring of 2019 Town Council approved an agreement with the adjacent HOA’s to accept contribution toward course operation, subject to irrigation replacement Town Council included golf irrigation replacement in the FY20/21 budget and further included it in the FY21/22 budget. El Conquistador Golf 36-Hole Irrigation Improvement Project Fall 2020 the Town selected Marvin Mills Irrigation Consulting through competitive solicitation for course irrigation design Spring 2021 the Town solicited bids for irrigation replacement of the Conquistador golf course, receiving only one bid at $3.72M August 2021 the Town solicited bids for irrigation replacement of both courses and only received two bids. The low bidder base bid was $7.8M (excluding $200K for driving range tee work and project contingency). 36-Hole Irrigation Replacement Approximately $8 million Options for Consideration 18-Hole Irrigation Replacement Approximately $4 million Partial Irrigation Replacement Approximately $3 million Questions Council Direction Mary Jacobs, Town Manger Kristy Diaz-Trahan, Parks and Recreation Director Paul Keesler, Public Works Director and Town Engineer David Gephart, Chief Financial Officer Marvin Mills, Irrigation Design Consultant (via Zoom) Bernie Eaton, El Conquistador Golf General Manager    Town Council Regular Session 1. Meeting Date:11/03/2021   Requested by: Councilmember Bohen and Vice Mayor Barrett  Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: PRESENTATION AND DISCUSSION REGARDING THE $25M BOND ELEMENTS TO INCLUDE PROJECT TIMELINES AND COSTS RECOMMENDATION: N/A EXECUTIVE SUMMARY: Councilmember Bohen and Vice Mayor Barrett have requested this agenda item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for discussion only. Attachments Staff Presentation  $25M Bond Project Update November 2021 Brief Background $25M Bond for Parks and Recreation projects added to final FY21/22 budget on June 16, 2021, with preliminary projects discussed. July 7, Town Council voted to include the following projects from the bond: Naranja Park Expansion (at least 50%; specific projects on next slide) Community Center Improvements: Additional Multi-use Paths Council authorized the bond issuance on September 22. Progress reviewed in monthly Executive Report Note: The Community Center Elevator is not a bond- funded project. The $750,000 approved by Council in the FY20/21 budget remains budgeted in the CIP fund. Elevator will be installed once Council finalizes layout of future Community Center improvements/renovation. Naranja Park Expansion Project Type: Construction Manager at Risk (CMAR) Bond Budget: $15M; estimate dependent upon final design Council-directed amenities to include: Multisport fields Splashpad Basketball and Pickleball Courts Skate Park Bicycle Pump track Walking trails Restrooms and Ramadas Associated infrastructure Naranja Park Expansion Progress since Budget Adoption Recruited and successfully hired a full-time, experienced Project Manager dedicated to this project; Mr. Keith Wood, Completed a new aerial topographic survey for the site Conducted an extensive RFQ process to select the Design Consultant Currently in the process of selecting the CMAR contractor. Expect contract to be finalized within 30-45 days. Tentative Schedule: Naranja Park Expansion Solicitation & Contracting Design & Award of GMP1 Construction GMP1 Design & Award of GMP2 Construction GMP2 Design & Award of GMP3 Construction GMP3 Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date GMP2: Fields, Roads, Parking Areas, Buildings, Splash Pad GMP1: Mass Earthwork & Utilities Package GMP3: Skate Park, Pump Track, Basketball Courts, Pickleball Courts Community Center Exterior Improvements Golf Course Irrigation Replacement Design-Bid-Build Bond Budget: $4.5M Bids at $7.8M (base bid) Council providing direction Nov 3 Tennis Court Reconstruction & Expansion Design-Bid-Build Bond Budget: $2M Parking Lot Reconstruction & Expansion Design-Bid-Build Design internal Bond Budget: $2M Tentative Schedule (subject to Council direction): Golf Course Irrigation Replacement Progress to date Design complete Solicitation for contractor bid complete Determining project path forward due to bid cost Design Solicitation & Contracting Construction El Con Course Construction La Canada Course 1 2 Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date Tentative Schedule: Tennis Courts Reconstruction & Expansion Progress Securing a design consultant through JOC process Procurement leading development of Statement of Work and design fee Design Solicitation & Contracting Construction Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date Tentative Schedule: Parking Lot Reconstruction & Expansion Design Solicitation & Contracting Construction Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date Progress Working with owner of vacant land Procured Town’s On-call Architect to plan the entire space Have a preliminary reconfiguration plan and coordinating design Multiuse Path Connections Locations La Cañada Dr. between Lambert and Naranja Naranja Dr. from La Cañada to Park entry CDO wash to James D. Kriegh Park Project type: Design-Bid-Build Bond Budget: $3.2M Additional funding: $420K from RTA Tentative Schedule: Multi-use Paths Progress to date Through an IGA approved through the RTA Board, the Town has been awarded $420K to be used for the La Canada MUP La Canada MUP Naranja MUP CDO to JDK MUP Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date Combined Preliminary Schedule Naranja Park Irrigation Tennis Courts Parking Lot MUP's 1 2 Jan 1, 22BondStartJan 1, 23Jan 1, 24Oct 1, 24EO Year 3July 1, 22July 1, 23July 1, 24Current Date