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HomeMy WebLinkAboutCouncil Agenda Packet 02/17/2004 TOWN OF MARANA, ARIZONA COUNCIL MEETING AGENDA 13251 N. Lon Adams Road February 17, 2004 - 7:00 p.m. Mayor Bobby Sutton, Jr. Vice Mayor Herb Kai Council Member Jim Blake Council Member Patti Comerford Council Member Tim Escobedo Council Member Ed Honea Council Member Carol McGorray Town Manager Mike Reuwsaat Welcome to this Marana Council Meeting. Regular Council Meetings are usually held the first and third Tuesday of each month at 7:00 p.m. at the Marana Town Hall, although the date or time may change, or Special Meetings may be called at other times and /or places. Contact Town Hall or watch for posted agendas for other meetings. This agenda may be revised up to twenty -four hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. If you are interested in speaking to the Council during Petitions and Comments, Public Hearings, or other agenda items, you must fill out a speaker card (at the rear of the Council Chambers) and deliver it to the Clerk in advance of the agenda item you wish to address. It is up to the Mayor and Council whether individuals will be allowed to address the Council on issues other than Announcements, Petitions & Comments, and Public Hearings. All persons attending the Council Meeting, whether speaking to the Council or not, are expected to observe the Council Rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. To better serve the citizens of Marana and others attending our meetings, the Council Chamber is wheelchair and handicapped accessible. Any person who, by reason of any disability, is in need of special services as a result of their disability, such as assistive listening devices, agenda materials printed in Braille or large print, a signer for the hearing impaired, etc., will be accommodated. Such special services are available upon prior request, at least ten (10) working days prior to the Council Meeting. For a copy of this agenda or questions about the Council Meetings, special services, or procedures, please contact Jocelyn C. Bronson, Town Clerk, at 682 -3401, Monday through Friday from 8:00 a.m. to 5:00 p.m. ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Amended agenda items appear in italics. Posted no later than February 13, 2004 by 7:00 o'clock p.m., at the Marana Town Hall, Marana Police Department, and the Marana Development Services Center. 1 TOWN OF MARANA, ARIZONA COUNCIL MEETING AGENDA 13251 N. Lon Adams Road February 17, 2004 - 7:00 p.m. I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. INVOCATION/MOMENT OF SILENCE IV. ROLL CALL V. APPROVAL OF AGENDA VI. ACCEPTANCE OF MINUTES Minutes of the January 6, 2004 Council Meeting Minutes of the January 13, 2004 PAG RTA Study Session Minutes of the January 20, 2004 Council Meeting Minutes of the January 21, 2004 CFD Study Session VII. CALL TO THE PUBLIC — ANNOUNCEMENTS — INTRODUCTIONS At this time, any member of the public is allowed to address the Town Council on any issue not already on tonight's agenda. The speaker may have up to three (3) minutes to speak. Any persons wishing to address the Council must complete a speaker card (located at the rear of the Council chambers) and deliver it to the Town Clerk prior to this agenda item being called. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, may ask staff to review the matter, or may ask that the matter be placed on a future agenda. VIIL STAFF REPORTS IX. GENERAL ORDER OF BUSINESS A. CONSENT AGENDA The consent agenda contains agenda items requiring action by the Council which are generally routine items not requiring council discussion. A single motion will approve all items on the consent agenda, including any resolutions or ordinances. A Council Member may remove any issue from the consent agenda, and that issue will be discussed and voted upon separately, immediately following the consent agenda. 1. Resolution No. 2004 -18 Authorizing the renewal of an Intergovernmental Agreement with Pima County for payment of incarceration of municipal prisoners. (Michael Reuwsaat) 2. Ordinance No. 2004.05: Solar Energy Svstem Credit Increase An ordinance of the Town of Marana, Arizona, amending Marana Town Code, Chapter 7, Article 7 3, relating to building permit fees, to increase the building permit fee credit for new homes with certain solar energy systems to $1,000. (Jack Holden) 2 TOWN OF MARANA, ARIZONA COUNCIL MEETING AGENDA 13251 N. Lon Adams Road February 17, 2004 - 7:00 p.m. 3, Discussion/Direction Approval of a reconstruction of the town owned building at the "Heritage Park" to become a public building. (Jaret Barr) B. COUNCIL ACTION 1. Swearing in by Oath the appointed members of the Board of Adjustment. (Michael Reuwsaat 2. PUBLIC HEARING: Resolution No. 2004 -16: Twin Peaks Highland Revised Preliminary Plat A resolution of the Mayor and Council of the Town of Marana, Arizona, approving the preliminary plat for PRV- 03133, Twin Peaks Highland, submitted by D. R. Horton for a 119 -lot single family detached home subdivision on 29.78 acres located within the Pima Farms North Specific Plan, located west of Silverbell Road, between Twin Peaks Road and Coachline Boulevard, in a portion of Section 20, Township 12 South, Range 12 East. (Kevin Kish) 3. PUBLIC HEARING: Resolution No. 2004 -17: Continental Reserve Block 15 Preliminary Plat A resolution of the Mayor and Council of the Town of Marana, Arizona, approving a preliminary plat on 19.80 acres, located in block 15 of the Continental Reserve Block Plat, within the Pima Farms Specific Plan area, consisting of a 66-lot single family residential subdivision. This property lies within Sections 28 and 33, Township 12 South, Range 12 East, on the south side of Continental Loop Road and west of Pima Reserve Drive. (Kevin Kish) 4. PUBLIC HEARING: Resolution No. 2004 -20: Continental Reserve Block 16B Preliminary Plat A resolution of the Mayor and Council of the Town of Marana, Arizona, approving the Continental Reserve Block 16B preliminary plat, consisting of an 86 -lot detached home residential subdivision on approximately 29.5 acres within the Pima Farms Specific Plan. The property is generally located at the southwestern corner of Pima Reserve Drive and Wade Road within Sections 28 and 33, Township 12 South, Range 12 East. (Kevin Kish) 5. PUBLIC HEARING: Resolution No. 2004 -23: Gladden Farms Community Facilities District Consideration and possible adoption of a Resolution of the Mayor and Common Council of the Town of Marana, Arizona, a municipal corporation of Arizona, ordering and declaring formation of Gladden Farms Community Facilities District; approving and authorizing the execution and delivery of a District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District) and declaring an emergency. (Michael Reuwsaat) 6. Resolution No. 2004 -24: First Amendment to Gladden Farms Development Agreement Consideration and possible adoption of a resolution of the Mayor and Council of the Town of Marana, Arizona, approving and authorizing the execution and delivery of a First Amendment to Gladden Farms Development Agreement with Gladden Forest, L.L.C. and declaring an emergency. (Michael Reuwsaat) 3 R TOWN OF MARANA, ARIZONA COUNCIL MEETING AGENDA 13251 N. Lon Adams Road February 17, 2004 - 7:00 p.m. 7. State Legislative Issues - Discussion/Direction /Action regarding all pending bills before the Legislature (Mike Reuwsaat) C. MAYOR AND +COUNCIL'S REPORT D. IT'IANAGERS' REPORT X, UPCOMING EVENTS XL FUTURE AGENDA ITEMS x1L ADJOURNMENT Bobby Sutton, Jr,, Mayor 4 rp 0 s � i a L1� ; • "# e i k': MINUTES OF REGULAR COUNCIL MEETING MARANA TOWN JANUARY 6'2004 PLACE AND DATE Marana Town Hall, January 6, 2004 I. CALL TO ORDER By Vice Mayor Kai at 7:01 p.m. II. PLEDGE OF ALLEGIANCE Led by Vice Mayor Kai III. INVOCATION/MOMENT OF SILENCE A moment of silence was observed. IV. ROLL CALL COUNCIL Bobby Sutton, Jr. Mayor Excused Herb Kai Vice Mayor Present Jim Blake Council Member Present Patti Comerford Council Member Present Tim Escobedo Council Member Present Ed Honea Council Member Present Carol McGorray Council Member Present STAFF Michael Reuwsaat Town Manager Present Jaret Barr Assistant to the Town Manager Present Frank Cassidy Town Attorney Present Jocelyn Bronson Town Clerk Present Jim DeGrood Development Services Administrator Present Attached is a list of public attendees. V. APPROVAL OF AGENDA Upon motion by Council Member Honea, seconded by Council Member Comerford, the agenda with a change was unanimously approved. Item XI. A. 7. Resolution No. 2004 -08 Authorization for the development of the Town of Marana Equestrian Center adjoining Ora Mae Harn District Park, was moved to IX. B. Council Action as Marana Unified School District's approval was required. 1 * :` ` �� ' F MINUTES OF REGULAR COUNCIL MEETING x �=��� j JANUARY 6 2:004 ` Council Member Comerford commented that reports, maps, and diagrams presented by Richmond American for Council review were too small and difficult to read. She suggested that future submittals be presented in a larger format. VI. ACCEPTANCE OF MINUTES Upon motion by Council Member Comerford, seconded by Council Member Escobedo, the minutes for the December 16, 2003 regular Council meeting were unanimously approved. VII. CALL TO THE PUBLICIANNOUNCEMENTS Billy Schisler, longtime Marana resident and current Planning and Zoning Commissioner, presented the Mayor and Council with an American flag which was flown on a combat mission over Uzbekistan and Afghanistan. Billy and Leilani Schisler's son, MSgt. Eric K. Schisler, Flight Engineer serving in the 210 Expeditionary Rescue Squadron with the Alaska Air National Guard, flew over these war torn countries on September 29, 2003, in an HC- 130(H)N Hercules aircraft. A plaque describing the tribute in support of Operation Enduring Freedom was also presented to the Town. Chief Vidaurri introduced two new employees in the Marana Police Department (MPD), Robert Bereiter and Chad Long. The Chief said that Mr. Bereiter recently retired as a manager from the Wisconsin State Police agency and that Mr. Long, an E911 communications operator, was involved with the MPD Explorer's Program for many years prior to joining the Town's law enforcement agency. Council Member Comerford introduced Richie Benner to the Mayor and Council and explained that Mr. Benner, a member of Boy Scout Troop #209, was nearing the completion of requirements for acquiring his Eagle Scout badge. The Council member praised the youth and said that he was a wonderful addition to the Marana community. VIII. STAFF REPORTS There were staff reports associated with this Council meeting. 2 `� ' � � �' MMINUTES OF REGULAR COUNCIL MEETING �� �� �� � IX. GENERAL ORDER OF BUSINESS A. CONSENT AGENDA 1. Resolution No. 2004 -01 Authorizing the Release of the Assurance Agreement for Continental Reserve Blocks 1 and 7, Trust No. 30,121, for Lots 1 -61, and Common Areas A through J, and Acceptance of Public Improvements for Maintenance (Farhad Moghimi) 2. Resolution No. 2004 -02 Authorizing the Release of the Assurance Agreement for continental Reserve Blocks 8 and a portion of 7, Trust No. 30,121, for Lots 1 -97, and Common Areas A through M, and Acceptance of Public Improvements for Maintenance (Farhad Moghimi) 3. Resolution No. 2004 -03: Gladden Farms block 6 Final Plat Request by Richmond American Homes for final plat approval of a 114 -lot single family detached home subdivision on approximately 25 acres of R -6 zoned land within Block 6 of the Gladden Farms development. Block 6 is located directly south of Moore road and east of the new Lon Adams road, within Section 34, Township 11 South, Range 11 East (Joel Shapiro) 4. Resolution No. 2004 -04: Gladden Farms Block 10 Final Plat Request by Richmond American Homes for Final plat approval of an 84 -lot single family detached home subdivision on approximately 26 acres of R -8 zoned land within Block 10 of the Gladden Farms development. Block 10 is located directly south of Gladden Farms Drive and west of the new Lon Adams Road, within Section 34, Township 11 South, Range 11 East (Joel Shapiro) 5. Resolution No. 2004 -05 - Continental Reserve Block 20 Lot Split A Lot Split request for Block 20 of the continental Reserve Final Block Plat, to be split into Block 20A and Block 20B, located at the southwest corner of Continental Reserve Loop and Silverbell Road, in a portion of Section 28, Township 12 South, Range 12 East. 6. Resolution No. 2004 -07 Authorizing participation in the Elected Officials' Retirement Plan (EORP) and authorizing a town official to enter into the Joinder Agreement with the EORP on behalf of its eligible elected officials (Jane Howell) 3 ,� � � '' � MINUTES OF REGULAR COUNCIL MEETING r l� �- �� 8. Resolution No. 2004 -09: Application for Liquor License New License for a Corporation: Consideration of recommendation to State Liquor Board for a No. 12 (Restaurant) liquor license application submitted by Steven Richard Mendelsohn on behalf of Billy Bryant's Bar -B -Q located at 3930 W. Ina Road (Jocelyn Bronson) 9. Resolution No. 2004 -10: Application for Liquor License New License for a Corporation: Consideration of recommendation to State Liquor Board for a No. 10 (Beer and Wine store) liquor license application submitted by Robert Jeffery Benton, on behalf of Target Store #854, located at 3901 W. Ina Road (Jocelyn Bronson) Upon motion by Council Member Escobedo, seconded by Council Member McGorray, the consent agenda was unanimously approved with a change. The change was that Item IX. A. 7. Resolution No. 2004 -08 Authorization for the development of the Town of Marana Equestrian Center adjoining Ora Mae Harn District Park, was moved to IX. B. Council Action as Marana Unified School District's approval was required. B. COUNCIL ACTION A. 7. Resolution No. 2004 -08 Authorization for the development of the Town of Marana Equestrian Center adjoining Ora Mae Harn District Park (Ron Smith) Mr. Smith presented this item before the Council and explained that various organizations such as 4 -H were eager to utilize the proposed facility. He said that, pending the Council's approval, the first scheduled event for the Marana Equestrian Center was the Western Heritage Rodeo to be held in conjunction with Founders' Day in March. Council Member Blake inquired about issues associated with the project's restroom facilities. Mr. Smith replied that Town staff planned to construct the bathroom facility in -house and that the facilities would be moveable for possible re- location to a permanent site in the future. Mr. Reuwsaat added that the Marana Unified School District (MUSD) supported the placement of the restrooms at the equestrian center's site. Upon motion by Council Member McGorray, seconded by Council Member Honea, Resolution No. 2004 -08 was unanimously approved. 4 Y Y^^ �� 1V�iINUTES OF REGULAR COUNCIL MEETING � � "� �� � `� m ��� - 4 Mr. Reuwsaat commented that this facility would be managed and operated by the Town and made available to the public in the same manner as the Parks' pavilions. He said that the Parks and Recreation department would control the use of the equestrian facility. 1. PUBLIC HEARING: Ordinance No. 2004.02: 6808 and 6810 N. Camino Martin Rezone A request by Dale Faulkner to rezone two parcels, consisting of 2.4 acres, located on the east side of Camino Martin Road and one -half mile south of Ina Road within Section 6, Township 13 South, Range 13 East. The request is for a change in zoning from "R -36" (single family residential, 36,000 square foot minimum lot size) and "LI" (Light Industrial) to "HI" (Heavy Industrial) (Joel Shapiro) Vice Mayor Kai opened and closed the public hearing as no speakers from the audience came forward. Mr. DeGrood gave a brief synopsis of this rezone request. He said that the two parcels in question, consisting of 2.4 acres, was entirely surrounded by properties zoned "HI" (Heavy Industrial) or "MR -2" (Multi- Family /medium -high density. He noted that, on October 29, 2003, the Planning Commission unanimously recommended approval of the request with two conditions. He said that the conditions included participation in any Camino Martin Road improvement district formed for roadway, drainage, and /or utility infrastructure improvements, and any development plan submitted for the properties that generated 50 or more average daily trips shall be subject to conditional use permit provision prior to the Town's approval of the development plan. Mr. Cassidy suggested that Section 2, Paragraph 1, be amended to read as follows: 1. The property owner, and/or owners, shall execute and record a covenant running with the land requiring them to participate in any Camino Martin Road improvement district formed for roadway, drainage, and /or utility infrastructure improvements. Upon motion by Council Member Honea, seconded by Council Member Blake, Ordinance No. 2004.02 with language changes was unanimously approved. 5 r MINUTES OF REGULAR COUNCIL MEETING „ , �.n.. 2. PUBLIC HEARING: Resolution No. 2004 -06: The Estate Lots at Tortolita Preserve Preliminary Plat: A request by'the owner for preliminary plat approval of a 25 -lot residential subdivision on approximately 72.6 acres comprising the Estate Lots at Tortolita Preserve Specific Plan. The property is located at the northeast corner of Moore Road and Wild Burro Road within Section 26, Township 11 South, Range 12 East. This subdivision conserves eighty percent of the site as naturally undisturbed open space (Joel Shapiro) Vice Mayor Kai opened and closed the public hearing with no speakers coming forward to comment. Upon motion by Council Member Escobedo, seconded by Council Member Comerford, unanimous approval of a continuance for Resolution No. 2004 - 06 until the January 20, 2004 regular Council meeting was given. The reason cited for the continuance was issues regarding documentation. 3. Resolution No. 2004 -11: Approving and authorizing the execution of a development agreement with Garden Estates at Dove Mountain, L.L.C., concerning the Estate Lots at Tortolita Preserve (Frank Cassidy) Upon motion by Council Member Escobedo, seconded by Council Member Honea, unanimous approval of a continuance for Resolution No. 2004 -11 until the January 20, 2004 regular Council meeting was given. The reason cited for the continuance was also issues regarding documentation. 4. Discussion/Direction - Adoption of Town's Core Purpose, Four Components of the Town Vision, Community Elements and Core Values (Mike Reuwsaat) Mr. Reuwsaat addressed the Council regarding the adoption of the Town's Core Purpose, Four Components of the Town Vision, Community Elements and Core Values. He said that this item was the result of a team effort by an ad hoc committee composed of senior staff who compiled information gathered at the August 2003 Staff and Council Retreat. He read the core purpose statement into the record as follows: "Our purpose is to provide our citizens with high - quality and valuable municipal services that will enhance and benefit their lives. We will strive to do this by being responsive and responsible in working with public and private entities. Our goal is to ensure that Marana remains a safe, stable and attractive community." 6 s� �,� ��� ��� lYIINUTES OF REGULAR COUNCIL MEETINGr *���' ��� s� Mr. Reuwsaat said that he was pleased with the senior staff's work on this project and explained that the next step in the process was to meet with the Town employees for discussion in order to develop a uniform understanding of the document. Upon motion by Council Member Blake, seconded by Council Member Honea, unanimous approval of the Core Purpose, Four Components of the Town Vision, Community Elements and Core Values was given. C. MAYOR AND COUNCIL'S REPORT Council Member Escobedo thanked community members for coming to the aid of the Marana Food Bank. He reported that the organization was able to feed many families within this area during the holiday season because of the generosity of local residents' donations. Council Member Comerford reported her attendance at the Marana Chamber of Commerce meeting with Congressman Jim Kolbe. She commended the Chamber staff for organizing this important meeting on such short notice. She • said it was a very informative session with the lawmaker that focused on issues affecting the Town. Vice Mayor Kai reminded the Council of a special Council meeting on January 13, 2004 regarding the Regional Transportation Authority with Pima Association of Governments (PAG). He added that January 23rd'S PAG Regional Assembly would begin at 5:30 p.m. and he hoped all of the Council members would attend. He reported that he would be in attendance at the CAWCD meeting regarding water issues affecting Marana. D. MANAGERS' REPORT Mr. Reuwsaat asked the Council members to RSVP to Diane Mangialardi, Administrative Manager, by January 15 if they planned to attend the PAG Regional Assembly. He announced that Arizona Portland Cement officials had extended an invitation to the Council and Town staff to tour their facility in Rillito. He commented that accepting the invitation would be a "good neighbor' outreach effort. Mr. Reuwsaat reported that the new Gallery Golf Course opening would be held on Janury 30th. He continued by saying that a six minute Marana promotional recently aired on CNN's The Best Managed Small Cities show, produced by Pat Summerall, and that a CD of the promotional had been distributed to each Council member. A copy of this compact disc has been made a permanent record. MINUTES OF REGULAR COUNCIL MEETING f, MARANA TOWNFHALL JANUARY 6, 2004 • The Town Manager concluded by vowing to have Council packets ready for review on Wednesday prior to the Council meetings. Mr. Reuwsaat said that he was working with the Town Clerk and Town Attorney to streamline the agenda process. He stated that he would make sure the backup materials were of good copy quality and that complete agenda packets were delivered in a timely manner in order to allow the Council ample review time. X. FUTURE AGENDA ITEMS There were no items suggested for future agendas. XIL ADJOURNMENT Upon motion by Council Member Honea, seconded by Council Member McGorray, approval to adjourn was unanimous. The time was 7:38 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the • Marana Town Council meeting held on January 6, 2004. I further certify that a quorum was present. Jocelyn Bronson, Town Clerk • 8 1 MINUTES OF PAG RTA STUDY SESSION MARANA TOWN HALL JANUARY 13, 2004 PLACE AND DATE Marana Town Hall, January 13, 2004 I. CALL TO ORDER By Mayor Sutton The meeting was held in an informal manner and no official roll call was taken. Vice Mayor Kai was excused from the study session. All other Council members were present and seated at the dais. Several handouts were distributed. These materials have been made a permanent part of the record and include: Pima Association of Governments as the Regional Transportation Authority: Options and Impacts (a report presented at the PAG Regional Council on November 19, 2003) Email transmittal from Jim Altenstadter, PAG Interim Executive Director, to participating jurisdictions with an attachment of the amended RTA statute Memorandum from Pima County Administrator Chuck Huckelberry to the Pima County Board of Supervisors regarding the Transportation financing and Regional Implementation Arizona Tax Research Association's State and Local Retail Sales Tax Rates by City, dated November 2003 Comparison of Transportation Fees from New Development II. GENERAL ORDER OF BUSINESS 1. Discussion/Direction: Pima Association of Governments as Regional Transportation Authority (Mike Reuwsaat) Mr. Reuwsaat began the study session discussion regarding the Pima Association of Governments (PAG) as Regional Transportation Authority. He said that the proposed effort was the result of a PAG - commissioned study by the University of Arizona which resulted in recommendations for amendments of existing legislation identifying PAG as a potential regional transportation authority. He explained that Mayor Sutton and he had been involved in a special PAG subcommittee tasked with evaluating options related to this topic. He noted that a regional committee meeting was scheduled for Thursday, January 15, 2004, at which Mayor Sutton would be presenting the Town of Marana's RTA recommendations. He said that the three main recommendations being presented included the right to extend or re- authorize the ability to call for a half cent sales tax for a period of twenty years, the right to extend the Regional Transportation Plan study period from 10 to 20 years to coincide with the taxation period, and the right to amend the current legislation so that there was one vote per member on the PAG regional Council. Mayor Sutton said that the Town was in favor of the recommended action and that the concept was a good one. He noted that none of the participating jurisdictions were in favor of subsidizing another community to pay for that community's transportation problems. He explained that the major task ahead was in working out all of the plan's details over the next couple of years. He mentioned that the Town had received a recommendation from Steve Huffman, State Representative from District 12, stating that the timing was very good for the Town as the Maricopa County Association of Governments' legislation was currently before the Legislature. The Mayor commented that while all of the jurisdictions were being cautious, each agreed with the general concept of the plan. He explained that Representative Huffman had suggested the Town provide its own preferences for inclusion in the legislation. He noted that the legislation would be drafted based upon the support coming out of PAG and from the comments that were received from the participating entities. Mr. Reuwsaat commended Pima County for clearly presenting the parameters and issues that needed to be addressed over the next few years. He especially applauded Supervisor Sharon Bronson for publicly acknowledging Marana's progressive leadership role related to past transportation funding in this area. Mayor Sutton expressed that, considering the acrimonious history between the County and Marana over the years, he felt that it was a substantial gesture for Pima County to come forward and offer its veto authority as a bargaining point in favor of the proposed RTA legislation. He emphasized that the fact every jurisdiction would receive an equal vote in the decision making process indicated the fairness of the proposed legislation. Mr. Reuwsaat read the proposed motion into the record and time for comments was allowed throughout the reading. A copy of the motion has been made a permanent part of this record and reads as follows: 2 s r MINUTES OF PAG RTA STUDY SESSION . . MARANA TOWN HALL t JANUARY 13, 2004 I move that we support Regional Transportation Authority legislation that: 1. Retains one vote per entity governance 2. Authorizes the RTA to call for an election to approve an additional one -half cent county -wide sales tax to fund the regional transportation plan Council Member Honea commented that he was apprehensive that the details of the RTA plan were not going to be in place prior to the Town's acceptance and authorization of the RTA proposal. Mayor Sutton explained that the Council Member's concern had also been the concern of others sitting on the PAG subcommittee. He said that the proposed action would allow portions of the original RTA legislation to be presented and that the RTA plan mechanism needed to be in place in order for the plan to go forward and develop because of the need to identify funding sources. Mr. Barr concurred with the Mayor and added that the proposed action was extending the authorization for a sales tax but that it did not discount the possibility of adding other funding sources to that funding pool. Mr. Reuwsaat said that the transportation plan and the sales tax both were tied P together and had to be completed before the PAG RTA board could even approve it. Mr. Reuwsaat resumed reading the proposed motion as follows: 3. Extends the tax authorization period from ten to twenty years 4. Amends the current legislation to allow for a twenty -year transportation plan 5. Does not authorize one jurisdiction to exercise veto authority of any kind 6. Provides for local government implementation of the approved transportation plan projects Mr. Reuwsaat interjected that condition six meant that projects approved in Marana would be implemented by Marana. He went on to read: 7. Authorizes the RTA to decline regional transportation funding to local governments that have not adopted regionally consistent transportation impact fees and/or other similar funding sources generated from new development 3 MINUTES OF PAG RTA STUDY SESSION x MARAN — a f � A TOWNIIALL 8,, 2004 Mr. Reuwsaat paused and gave an example of condition seven. He explained that one of the comparisons distributed to the Council, specifically the Comparison of Transportation Fees from New Development, indicated that full equity had not been achieved in all of the participating jurisdictions. He .continued reading the motion as follows: 8. Provides a geographic nexus between revenues generated and transportation expenditures instead of a minimum - percentage distribution to each jurisdiction Council Member Honea commented that this condition was fairly general. Mr. Reuwsaat replied that negotiations needed to take place over the next several years regarding a subregional plan. He used improvements to Thornydale Road as an example and said that it would be a direct benefit to the Town of Marana if sales tax revenues were used for roadway improvements from Dove Mountain to the Town's business district. He began reading the motion again: 9. Provides for adequate citizen input I also move that staff be instructed to investigate the benefits and implications of a half - cent Town sales tax increase dedicated to subregional transportation improvements with the addition of adequate citizen input. Mr. Reuwsaat continued by saying that Marana was not precluded from creating its own sales tax increase and utilizing that revenue locally. Council Member Honea asked that if the Town chose to implement a half -cent sales tax for funding to bond the Linda Vista /Twin Peaks Bridge and Interchange, one of the major regional projects benefiting Marana, Oro Valley, and Pima County, would that eliminate the Town's bonding capacity? Would those funds have to be blended with the RTA funding? Mr. Reuwsaat answered that this legislation would not preclude the Town from that type of action but said that the PAG RTA would be an additional revenue source. Mayor Sutton asked for an explanation of the necessary action following the passage of the RTA legislation. 4 MINUTES OF - PAG RTA STUDY SESSION `MARANA TOWN HALL JANUARY 13; 2004 Mr. Reuwsaat said that a long and arduous negotiation process would begin at that point and that the initial work would be refining the statute to include some or all of the proposed conditions. He estimated this process to be two to three years before the legislation would be ready for the PAG RTA Board of Directors. He noted the history of failures in the region for this type of legislation and stated that it would be in PAG's best interest to take plenty of time during the negotiating process to accommodate all of the participating jurisdictions. Council Member Honea asked what the advantage was for establishing a regional authority versus each individual entity performing transportation improvements in their own areas. Mr. Reuwsaat replied that the PAG transportation legislation was not simply a sales tax but was also other revenue sources including a three cent increase on jet fuel. He said that it allowed the Town to leverage those funds that were generated to the PAG RTA toward other State and federal funds that would not be available to the individual jurisdictions. Mayor Sutton pointed out that Pima County would be accruing monies through this legislation that would raise the amount of available funding for regional projects such as improvements to Tangerine Road involving Oro Valley, Marana, and Pima County. Tim Ahrens, PAG Transportation Manager, said that this was only the beginning of the work ahead and that the legislation would set some parameters on transportation funding enabling this region to guide its own future. He noted that only Pima County had set parameters. He confirmed that the City of Tucson and the Town of Sahuarita had voted on the legislation as it stood before any amendments were made. He said that the City of South Tucson had not voted on the legislation and that no word had been received from the Pasqua Yaqui Nation as to their approval or rejection. He concluded that unanimous approval from all nine PAG jurisdictional members was needed before going to the voters. Mayor Sutton said that he was not in favor of raising the sales tax a full cent but that he would approve a half -cent increase now for immediate use locally and then forfeit that half -cent to the PAG RTA when it passed in the Legislature sometime within the next five years. He urged full disclosure to community members coupled with complete explanations of the amendments. The Mayor emphasized that the process needed to be "citizen driven'. 5 MINUTES OF PAG RTA STUDY SESSION MARANA TOWN HALL' . JANUARY 13, 2004 Mr. Barr suggested that a clause requiring the public input process be added to the proposed motion. Mr. Reuwsaat agreed wholeheartedly with the Mayor that this was a perfect opportunity to spotlight Marana's progressive thinking and leadership. He said he would be delighted to present the Council with a public input process for review. Council Member Honea restated his apprehension regarding the proposed legislation. He asked if approval of the RTA action would circumvent having an election. Mr. Reuwsaat replied that it would not. Mr. Barr pointed out that both the proposed sales tax increase and the transportation plan were required to go before the voters for approval. Mayor Sutton underscored the importance of acquiring a unanimous PAG membership prior to going to the voters because just one municipality could defeat the entire election. Council Member Honea commented that condition five was extremely important. He stressed the necessity for making sure the plan was truly regional with no entity having the right of veto. Upon motion by Council Member Honea, seconded by Council Member Escobedo, the motion previously read into the record with an addition was unanimously approved. The addition is as follows: "I also move that staff be instructed to investigate the benefits and implications of a half -cent Town sales tax increase dedicated to subregional transportation improvements with the addition of adequate citizen input." Mr. Reuwsaat commended the Town staff for their hard work on this project. He shared that this had been a difficult project to complete. • 6 ' `�' 3 r ` � �� MINUTES OF PAG RTA'�STUDY SESSION • III. ADJOURNMENT Upon motion by Council Member Escobedo, seconded by Council Member McGorray, approval to adjourn was unanimous. The time was 7:38 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on January 13, 2004. I further certify that a quorum was present. Jocelyn Bronson, Town Clerk 7 S f MINUTES OF REGULAR COUNCIL MEETING :. MARANA TOWN HALL JANUARY 20,2004 PLACE AND DATE Marana Town Hall, January 20, 2004 I. CALL TO ORDER By Mayor Sutton at 7:00 p.m. II. PLEDGE OF ALLEGIANCE Led by Mayor Sutton III. INVOCATION/MOMENT OF SILENCE A moment of silence was observed. IV. ROLL CALL COUNCIL Bobby Sutton, Jr. Mayor Present Herb Kai Vice Mayor Present Jim Blake Council Member Present Patti Comerford Council Member Present Tim Escobedo Council Member Excused Ed Honea Council Member Present Carol McGorray Council Member Present STAFF Michael Reuwsaat Town Manager Present Jaret Barr Assistant to the Town Manager Present Frank Cassidy Town Attorney Present Jocelyn Bronson Town Clerk Present Jim DeGrood Development Services Administrator Present Attached is a list of public attendees. V. APPROVAL OF AGENDA Upon motion by Council Member McGorray, seconded by Council Member Honea, the agenda was unanimously approved. VI. ACCEPTANCE OF MINUTES There were no minutes submitted for Council approval. l .,MINUTES OF REGULAR' COUNCIL MEETING `MARANA TOWN HALL %x JANUARY,20,1 2404` VII. CALL TO THE PUBLICIANNOUNCEMENTS Chief Vidaurri addressed the Council and introduced two new Marana Police Department (MPD) recruits, Officers Alexander McKenna and Robert Santos. He said that both men brought a wealth of experience to the Towns police agency. He noted that Officer McKenna had spent time in Bosnia working with the International Police as well as having local experience with the Pascua Yaqui Tribal Police. He said that Officer Santos had been a lieutenant for many years on a New Mexico law enforcement team. The Chief continued by introducing Jim Oaks, the VIP Coordinator who will be the liaison between YIPS & MPD. Mr. Oaks thanked the Council for their support of the VIPS program. He made an effort to especially thank Sgt. Bill Derfus and Officer Lori Sheppard for organizing the VIPS program and said that both did an excellent job making the training lots of fun. He extended an invitation to the Mayor and Council to the group's graduation ceremony scheduled for Wednesday, January 21St, at 5:00 p.m. in the Heritage Highlands Clubhouse. He expressed his pride in being a part of the VIPS program and that it would serve as the pilot program for more citizen patrols in the future. The Chief noted that VIPS was a prime example of a successful partnership being formed between the community and the police department. He said that the program currently launching in the Dove Mountain area would blossom throughout the entire Town of Marana. He extended special thanks to Sgt. Derfus and Officer Sheppard for committing their personal time to this important project. Chief Vidaurri concluded by voicing his desire to see the VIPS program expanding into the Sunflower community. Mayor Sutton apologized that he and the Council would not be able to attend the festivities because of a scheduled study session on Wednesday night. He thanked the Dove Mountain residents for being proactive in their community and had the graduates stand for recognition and applause. Tony Dellheim, representing Bedroxx Bowling, addressed the Mayor and Council regarding donations from an ongoing weekly program, Marana Family Fun Night. He explained that Bedroxx was a family entertainment center and that every Thursday night beginning at 5:00 p.m., there was unlimited bowling and video games for under $10.00. He added that Bedroxx would donate one dollar back to the community for use in the Parks & Recreation department and the Marana Education Foundation. He presented two checks for $395 each to Ron Smith, Parks & Recreation Director, and Don Cotorno, representing the Marana Foundation for Educational Excellence. Both gentlemen thanked Mr. Dellheim and Bedroxx for the generous donations and community spirit. 2 MINUTES ®F REGULAR COUNCIL MEETING - = " " "JANUARY202004 Mr. Stolmaker gave a brief update to the Council on 4th quarter activities for the Chamber of Commerce. A hard copy report was distributed to the Council members and has been made a permanent part of this record. He reported a membership increase of 24 including 10 new businesses. He informed the Council that the tourism signs had still not been replaced along Interstate 10 but that he had been assured by an ADOT representative that this matter would be resolved shortly. Mr. Stolmaker reported that the recent golf tournament held at The Pines at Marana was a huge success resulting in an $800 donation to the Marana Food Bank. He vowed that the Chamber would continue to donate a certain percentage of their net profits to either the Marana Food Bank, the Marana Foundation for Educational Excellence, or the Marana Health Center. He announced a bowling tournament scheduled for April 17th and sponsored by Northwest Medical Center with the net proceeds going to the Marana Health Center. The executive director concluded his report by congratulating the Council and staff for winning the "Best Managed City" award. He said that he was proud to be associated with Marana. Mayor Sutton reminded the Council of an upcoming SAHBA event on Saturday, January 24, 2004, and mentioned that Jack Holden, Building Official, had been nominated as Public Official of the Year by the organization and might receive the award at that time. Mr. DeGrood updated the Mayor and Council on the cleaning of Interstate 10 by the Arizona Department of Transportation (ADOT). He said that he had recently spoken to Dennis Alvarez, ADOT District 2 engineer, that the permit would be issued by January 30th or he would issue Mr. DeGrood a verbal notice to proceed. He said that this was good news and that Town staff could begin cleaning the I -10 shoulder areas soon. The Mayor asked that this information be posted on the website as many calls had been received regarding this issue. Mr. Reuwsaat asked Mr. DeGrood to speak to Mr. Alvarez about the tourism signs as well. VIII. STAFF REPORTS There were no questions regarding the staff reports. 3 MINUTES OF REGULAR. COUNCIL MEETING MARANA TOWN HALL ..... . ..... ... u . `' m JANUARY20, 2004 IX. GENERAL ORDER OF BUSINESS A. CONSENT AGENDA There were no consent items presented to Council for consideration. B. COUNCIL ACTION 1. Continued Public Hearing: Ordinance No. 2004.04 and Resolution No. 2004 -14 Proposed amendment to the Land Development Code of the Town of Marana, amending Title 8 - General Design Regulations, by adding residential design requirements for single - family detached housing and declaring Title 8 and Section 08.06 a public record (Jim DeGrood) This item was continued from the December 2, 2003 regular Council meeting. The continuance was approved by the Council so that further work could be done on design standards preventing the construction of residential housing projects which were inconsistent with the overall quality expectations of the Town. Mayor Sutton opened and closed the public hearing as no speakers from the audience came forward. Mr. DeGrood addressed the Council regarding the proposed amendment to Title 8 of the Marana Land Development Code. He said that the conditions included six conditions originally proposed on December 2nd with a seventh condition limiting to 50% the percentage of two -story homes within any subdivision. He reported that Encore Planning had been engaged in a project to help Town staff refine design guidelines for residential housing products and that the focus would be on establishing a development review board to more prescriptive land development codes. He related that the consultant had recommended a 6 -month timeframe within which this project would evolve. He said that it needed to be brought back through a Managers' Committee appointed by the town manager, council members, design professionals, and members of the public to assist town staff in working through Council concerns the council regarding the products being offered in the community. Mr. DeGrood indicated that this effort spoke well of the community in the long term and he recommended approval of the posted motion. 4 ' . MINUTES OF REGULAR COUNCIL MEETING y ° MARANA TOWN HALL JANUARY 20, 2004 ... Council Member Honea asked about a discrepancy with the proposed amendments described in Council materials and the language represented in the Code materials. He asked why the zoning designations R -6 through R -12 had been solely named instead of listing all subdivisions containing lot sizes smaller than R -12 standards. Mr. DeGrood replied that the R -6 through R -12 zoning districts were primarily the districts that would be affected by the proposed Code amendment and that, currently, there were no other designations below those designations except for the multi - family zoning. He related that staff felt it was inappropriate to apply the standard to the multi- family designation as that designation was typically a uniformly applied two -story product. Council Member Honea commented that there was no availability of an R -5 zoning designation presently listed in the Town's Code. He said that he recalled that, at one time, a variety zoning designations were going to be added to the Code. Mr. DeGrood explained that smaller lot size designations were not presently listed in the Code but that if an individual wished to come into the Town with a smaller product they would have two choices; to either come in under multi - family zoning or submit a specific plan. He said that submitting a specific plan was a more appropriate method it allowed the Town an opportunity to be much more specific in the design and layout of the product during the review process. Mr. Reuwsaat said that Council Member Honea's point was well taken and that once the expedited process was complete, then it may be appropriate for a smaller lot size designation recommendation with particular conditions being placed on the residential product. The Town Manager continued by saying that after conditions were in place from the Design Review Committee the Code would have to be revised anyway. He indicated that a similar process would be brought before the Council for review shortly, and it involved commercial design review criteria. He emphasized that all of these actions would present a "theme" throughout the community as it developed. s f 1VIINUTES OF REGULAR COUNCIL MEETING JANUARY, 20 2004` Mr. DeGrood added that the proposed amendment language stated that lots less than R -12, single - family detached lots, would have the standard applied and that, in the event that smaller lot zoning was made available, the standard would be sufficiently broad to cover such scenarios without requiring other amendments. He said that the additional residential design requirements were meant to be interim measures until recommendations were made by the Design Review Standards Committee. Upon motion by Council Member Honea, seconded by Council Member Blake, Ordinance 2004.04 and Resolution No. 2004 -14 were unanimously approved. Unanimous approval was given to authorize staff to form a Design Standards Review Committee to review the Town's residential design standards and identify and recommend ways to further encourage or regulate the quality of projects constructed in the Town. 2. Resolution No. 2004 -13 Appointing Members of the Board of Adjustment (Mike Reuwsaat) Mr. Reuwsaat said that he was always pleased to have an opportunity to present good news to the Council and that this item provided one of those occasions. He pointed out that, due to increasing development, particularly in Northern Marana, and to the Towri s recent addition of more stringent zoning requirements, action by the Board of Adjustment would be requested more frequently. He described the Board of Adjustment as a quasi - judicial body and the Mayor and Council as a political body, and communicated that it would be preferable to have a Board of Adjustment body comprised of citizen members. He said that staff was recommending the appointment of Bill Ohl, Bob Anderson, and Bill Raffone to 4 -year terms, and Louise Perillo, Jack Noble, Lyn Alvarez, and Victor Parmentier to 2 -year terms on the Board of Adjustment. Upon motion by Vice Mayor Kai, seconded by Council Member Honea, Resolution No. 2004 -13 was unanimously approved. Mr. Reuwsaat announced that Bob Anderson and Victor Parmentier were present and asked them to stand and be recognized. Mayor Sutton thanked them for their dedication in serving the Town of Marana. 6 ` ,MINUTES OF REGULAR COUNCIL MEETING V MARANA TOWN HALL . JANUARY 20;2004 3. Resolution No. 2004 -11: Approving and authorizing the execution of a development agreement with Garden Estates at Dove Mountain, L.L.C., concerning the Estate Lots at Tortolita Preserve (Frank Cassidy) Mr. Cassidy presented this item before the Council and noted that Items B. 3 and B. 4 were associated. He said that it made sense to hear explanations for both at the same time. He explained that, technically, the manner in which the rezoning ordinance was written when the property was rezoned, the development agreement was to be approved prior to the preliminary plat. He noted that the development agreement was fairly simple and contained the standard requirements typically imposed. Upon motion by Council Member McGorray, seconded by Council Member Honea, Resolution No. 2004 -11 was unanimously approved. 4. Resolution No. 2004 -06: The Estate Lots at Tortolita Preserve Preliminary Plat A request by the owner for preliminary plat approval of a 25 -lot residential subdivision on approximately 72.6 acres comprising the Estate Lots at Tortolita Preserve Specific Plan. The property is located at the northeast corner of Moore Road and Wild Burro Road within Section 26, Township 11 South, Range 12 East (Jim DeGrood) Mayor Sutton said that, taking the legal counsel previously provided, the Council could go straight to motion. Mr. Reuwsaat stated that the proposed development was 72.6 acres and adjacent to Dove Mountain off of Moore Road. He mentioned that the specific plan had been previously approved by Council and that the project was primarily conditioned upon ferruginous pygmy -owl critical habitat restrictions. He said that the preliminary plat was consistent with the specific plan and that staff was recommending its approval as well. Upon motion by Council McGorray, seconded by Council Blake, Resolution No. 2004 -06 was unanimously approved. 5. Resolution No. 2004 -12: Sombra de Tecolote Preliminary Plat Request for approval of an 8 -lot single- family subdivision on 14.86 acres, zoned R- 36, located east of Camino de Oeste, south of Camino del Norte, north of Turkey Lane in Section 7, Township 12 South, Range 13 East (Jim DeGrood) 7 MINUTES OF REGULAR COUNCIL MEETING MAR A TOWN HALL . . JANUARY 20, 2004 Mr. Reuwsaat addressed the Council and said that the proposed subdivision was basically another low impact development with 8 lots. He noted that identical critical habitat requirements applied with no more than 20% disturbance to the property. Mr. DeGrood said that the lot sizes ranged from 1.23 acres to 2.7 acres in size and that this project, previously within the Hartman Hills Specific Plan area, had been identified as office complex. He noted that the development was down -zoned to R -36 by the Town approximately a year ago and that the developers were well within lot size compliance. Upon motion by Vice Mayor Kai, with a second by Council Member Honea, Resolution No. 2004 -12 was unanimously approved. 6. Ordinance No. 2004.03 Authorizing an exchange of real property east of the intersection of Interstate 10 and Tangerine road to accommodate and compensate the landowners for the Town's storage of a large pile of asphalt roadway millings on the property and authorizing the execution of a Real Estate Exchange Agreement with the landowners, Lester Hayt, Sr. & Eloise Hayt, the Harper Revocable Trust, Lester Hayt, Jr. & Suzanne Hayt, Nancy Lewis, and the Michelle E. Butts Trust (Frank Cassidy) Mr. Cassidy spoke to the Council regarding this item and said that, essentially, the Town was trading away title to approximately one -half acre of excess right -of -way that was acquired when the Tangerine Road right -of- way property was purchased in 2001. He said that in exchange the Town would acquire a 27 -month lease on property immediately next to the excess right -of -way area and noted that the exchange agreement also provided for the accommodation of the Town's obligations related to the cleanup of a large pile of asphalt roadway millings, fondly known as Mount Moghimi, that was mistakenly placed by the Town on the Hayt property. Upon motion by Council Member Blake, seconded by Council Member McGorray, Ordinance No. 2004.03 was unanimously approved. s *` >' JANUARY 20,`2004 n_nz • C. MAYOR AND COUNCIL'S REPORT Mayor Sutton reported that the Council's pace would begin to quicken as they began working on Town - related State and Federal issues. He said that the Twin Peaks /Linda Vista Interchange would be one of their main focuses and that the actions of the current Council would set the tone in Marana for the next fifty years. D. MANAGERS' REPORT Mr. Reuwsaat reminded everyone of the PAG Regional Council scheduled for Friday evening, January 23rd, and asked the Council to be sure to inform Ms. Mangialardi if they planned to attend the meeting. Mr. Barr informed the Mayor and Council that the Pima County Board of Supervisors had voted to forward the six Open Space bond questions to the ballot in May, 2004. He said that he would provide a memo to the Council explaining all that was contained in the bond package. X. FUTURE AGENDA ITEMS There were no items suggested for future agendas. XII. ADJOURNMENT Upon motion by Council Member Honea, seconded by Council Member McGorray, approval to adjourn was unanimous. The time was 7:38 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on January 20, 2004. I further certify that a quorum was present. Jocelyn Bronson, Town Clerk • 9 PLACE AND DATE Marana Town Hall, January 21 2004 L CALL TO ORDER By Mayor Sutton at 6:04 p.m. The study session was held informally and no official roll call was given. All Council members were present and seated at the dais. Senior staff and Town consultants in attendance included Mike Reuwsaat, Jaret Barr, Jim DeGrood, Jocelyn Bronson, Frank Cassidy, Roy Cuaron, Mark Reader, and Michael Cafiso. A list of public attendees is attached. II. GENERAL ORDER OF BUSINESS 1. Study Session on Gladden Farms Community Facilities District (Mike Reuwsaat) Mr. Reuwsaat began the study session by explaining that, in order to better inform the Council, specific issues and considerations relating to the Gladden Farms project would be discussed as well as financial and development - related aspects of CFDs in general. Mr. Cuaron addressed the Council and gave a brief history of the Arizona Community Facilities Act, A.R.S. X48 -701, passed in September 1988. He said that CFDs provided a mechanism for cities, towns, and property owners to finance and construct public infrastructure, improvements and amenities. He pointed out that the Council's consent was required before a CFD could be formed and that CFDs were governed by a board of directors. He indicated that CFD debt was independent and separate from the sponsoring municipality and that statutory debt limitations of cities and towns were unaffected by the district's debt. He listed the three types of CFD debt instruments including general obligation bonds, special assessment bonds, or revenue bonds. Mr. Cuaron added that the CFD statute allowed the board to impose a 30C per $100 assessed valuation levy for operations and maintenance (O &M) expenses of the district. Mr. Cuaron continued by focusing specifically on the proposed Gladden Farms CFD. He said that the applicants wanted to issue approximately $23M for public infrastructure consisting of on- site /off -site water and sewer facilities as well as roadway improvements. He confirmed that Town staff was recommending the Council serve as the CFD board for several reasons. He said that the Town planned to propose a general obligation (G.O.) bond authorization and, with the Council sitting 'as the CFD board, the Council would be able to control the tax rate and provide equity throughout the district as well as any other district formed in the future. He indicated that the total G.O. authorization was expected to be $69M with $23M reserved for Gladden Forest and $46M reserved for the district. He disclosed that the anticipated tax rate for the repayment of the bonds should not exceed $2.50 per $100 of assessed valuation, in addition to the 30C O &M. He pointed out that the Town expected Gladden Forest to subsidize district expenses until assessed valuation provided sufficient revenues, not to exceed $100,000 per year. Mayor Sutton asked for further explanation of the differences between general obligation bonds and the special assessment bonds in terms of their continuing capacities and the ability of future councils to utilize the funding, even after a development project's completion. The Mayor explained that one of the reasons he asked this question was because the Council was looking at this funding mechanism as a means to provide future councils the bonding capacity to move forward and take on different projects within the district. Mr. Cuaron replied that G.O. bonds offered the district more flexibility for the future than special assessment bonds, particularly with the way the Council was recommending that the district be formed and authorized, by financing $69M even though the applicant and developer had identified only $23M in needs. He explained that authorizing three times the requested amount gave the district board the capacity to issue additional bonds to finance future infrastructure. Mr. Reuwsaat added that the $2.50 per $100 assessed valuation tax rate would provide equity over time and an equal playing field for the future development community. He said that it would provide a consistent level of expectation for those paying for the improvements to the tax levy for something they could expect instead of increased taxation. Mr. Cassidy pointed out that the Council action authorized $69M worth of bond sales total throughout the history of the district. He said that, at any given time, the amount of bonds that the $2.50 per $100 in assessed valuation would be able to support was significantly less than the proposed $69M. He added that, based on the projected build -out and the projected values, it was thought that it would take Marana 20 years to be able to generate enough assessed value to sell $23M in bonds. He explained that the other remaining 2 $46M would be sold further down the road as the first $23M bond debt was paid down and that the $2.50 assessment stayed flat. He added that this is one of the things that distinguishes G.O. bonds from special assessment bonds: as the project develops, the capacity to sell more G.O. bonds increases because the assessed value increases. Mr. Cuaron said that the $2.50 tax rate was somewhat of an arbitrary number and could change at the direction of the district board. Mayor Sutton emphasized that the Town needed to be careful not to break its commitment to the residents not to impose a property tax. He added that he would not support a tax rate increase once a rate had been agreed upon at the initial formation of the CFD. Mr. Reuwsaat said that one of the benefits of forming a CFD is the Towri s ability of the Town to provide residents with a consistent expense over time. He said that this Council is setting a precedent and that Town staff recommends the $2.50 rate as something that fits within an equitable rate and tax burden region -wide and town -wide that could stand the test of time. Council Member Honea said that he did not have a problem with the formation of CFDs in order to finance infrastructure up front. However, he expressed concern about putting the $46M in reserve. He stated that he believed the Town was essentially imposing a $2.80 property tax forever on any home buyer in the Gladden Farms development. He reminded everyone that he was one of the Council members who had vowed never to support a property tax but that he believed supporting the $23M was an acceptable method of financing the much needed infrastructure improvements in the Gladden Farms area. Council Member Honea continued by saying that he believed the development would build out within ten years, as well as other projects in the area such as Continental Reserve and that supporting the additional $46M was dooming the home owners within these developments to a property tax for perpetuity. He pointed out that other homeowners living in already established developments in Marana would not be paying any property taxes but would be enjoying the benefits provided from the improved infrastructure paid for at the expense of a few. He said that he understood the philosophy of paying for a portion of a community library with CFD funding but that he had made a commitment to oppose a property tax. He voiced his concern that bureaucrats and elected officials would use the additional bonding capacity for frivolous projects in the future. He said that he believed that the proposed CFD would assure that some of the Marana residents would 3 be paying an undue burden compared to their neighbors in Continental Ranch, Continental Reserve, Dove Mountain, or old Marana. He voiced his feeling that funding more than was needed in the community facilities district was deceiving and that he had a real problem with including the additional $46M bonding capacity in the CFD package. He questioned whether this was a CFD to fund infrastructure or simply a "shill" to collect a property tax forever. Mr. Barr commented that he and Council Member Honea had discussed this issue many times and that he agreed with the Council Member on many points the Council member had just made. He said he would like to clarify that the district does not tax in perpetuity but taxed only as long as it had outstanding debt. He said that, at any time the district did not have debt, it could choose to fold itself. He pointed out that the additional bonding capacity gave the CFD board the flexibility of having funding to use but also imposed no obligation to use it. Vice Mayor Kai entered into the discussion and said that he thought if the Council saw some future need for more roadway improvements then they would authorize another level of funding. He said that the additional bonding capacity gave the CFD board another tool to fund future infrastructure. He asked if impact fees for adjoining property owners would level the playing field with the Gladden Farms residents. Mr. Reuwsaat replied that it would and said that impact fees were a point of discussion at the Council retreat in August 2003. He explained that Town staff was in the process of reviewing transportation impact fees, as well as impact fees for parks, drainage, and water facilities. He pointed out that a drawback associated with impact fees was that once an impact fee was set then it could not be changed or raised even though the monies funded were not sufficient for covering the infrastructure costs. He added that the formation of a community facilities district gave the Town sufficient capacity even if it was never used. The Vice Mayor mentioned that the Town of Oro Valley had recently experienced a bad financial situation regarding much needed infrastructure funding and their Council had been forced to impose a property tax. He said that the Marana Council was only taxing certain new developments with the proposed CFD and that he believed there would be a great deal of resistance if the Council attempted to tax older areas within the Town. 4 Council Member Honea voiced his opposition to supporting a property tax on any resident of Marana. He stated that he believed the Council was not just setting up a funding mechanism for infrastructure improvements but that they were setting up a property tax for the residents in the district forever. He noted that the Saguaro Springs development would probably form a CFD as well but that the vast majority of Marana residents would not be paying a property tax. He said that specific groups of residents unfortunate enough to be in an area where a CFD of the type proposed was formed would be taxed twice if a half - cent transportation tax was approved by the voters in the future in order to assist in the funding of transportation improvements such as the Linda Vista Interchange. He noted that every other Marana resident would pay only once for the infrastructure improvements. Council Member Comerford pointed out that home owners within the proposed CFD area had the opportunity to come before the Council and voice their opinions to the proposed action. She said that, as a resident of Continental Ranch, she would have favored the formation of a CFD if she had been informed about the benefits when she purchased her home. She commented that she would have gladly contributed monies to help in building the Linda Vista /Twin Peaks Interchange. Mayor Sutton emphasized that CFD monies must be spent within the district or to benefit the district. He stated that funds from the Gladden Farms CFD could not be utilized for roadway improvements on Ina Road. Council Member Comerford said that denying the additional $46M bonding capacity would create a limit to what the district residents could have to say even if they wanted more roadway improvements. She said that there was no other viable funding method available for future interchanges or other major infrastructure improvements. Mr. Reuwsaat agreed with the Council member and said that the flexibility of having the additional funding capacity gave the residents from Gladden Farms an option for funding park improvements or landscaping upgrades in the future should the need arise. He noted that this type of funding would directly benefit the Gladden Farms residents without burdening the rest of the sales tax or revenue sharing received from the remainder of the community. Council Member Blake said that if the Gladden Farms residents thought that what they were paying was enough and that they did not want additional bonding then they had the opportunity to appear before Council to voice that opinion. 5 s, Council Member Comerford said that the builders would certainly pass on the CFD costs to the home owner. Mayor Sutton commented that it had been discovered by Town staff that some of the impact fees already in place were too low but that there was no way at this point to go back and charge more to those who already paid. He said that his concern was the Town could not expect the upward development cycle experienced for the past eight years to continue at the current pace. He said that eventually another town would be the fastest growing town and that Marana would be fully developed. He warned that if the Town didn't begin setting up CFDs to pay for development in perpetuity then he believed that, with the current state of the budget and with the budget projections going forward, some future Council would have to vote on a municipality -wide property tax in order to cover costs. He said that he did not believe that the Town received enough for the services provided to the community and that the Town continued to adapt and add more to provide better service. He said that Marana was robust because residential and commercial development was going extremely well but that those cycles would change. He acknowledged that he saw the additional $46M bonding capacity as a rainy day fund for the future of Marana. He stated that everybody paid for the whole community growing and that the proposed CFD was a way to protect the promises already made to the residents. He urged the Council to weigh the benefit of approving the CFD over the next 20 to 30 years. Vice Mayor Kai encouraged the staff to look into impact fees for adjoining property owners to the proposed district. He maintained that an impact fee would level the playing field for the acquired amenities brought into the community by the CFD. Mr. Reuwsaat agreed with the Vice Mayor and said that this process was underway. He said that the Town staff was confident that the recommendations being provided were good and conservative. Mayor Sutton spoke about the initial $23M for the public infrastructure. He asked what the guidelines for disbursal to the developer would be and wondered whether the monies would be disbursed in one lump sum or doled out as needed. Mr. Cassidy replied that the developer paid for the infrastructure improvements up front and was then reimbursed through the CFD bond funding process. He said that the amount of bonds that could be funded with 6 FAMEN the $2.50 per $100 assessed valuation was obviously low in the beginning and that assessed valuation needed to be built up for repayment. He pointed out that the developer never received 100% reimbursement for all infrastructures. Mayor Sutton asked what would happen if the proposed CFD was not formed. Mr. Barr replied that the developer would still build the infrastructure but that the costs would be passed on to the homebuyer in the price of the home. Mr. Cassidy illustrated a normal scenario and said that the developer would build the infrastructure then charge back the homebuyer in the house price. He said that after completion of the infrastructure, the developer would be released by the Town from any assurance agreements and the Town would assume the infrastructure maintenance without the benefit of any O &M tax. He expressed that in a CFD scenario, at least the town received the O &M tax to cover maintenance expenses. Mr. Barr added that another benefit to districting was that the bonding capacity allowed the Town to acquire better infrastructure than would normally be available. Mr. Reuwsaat commented on the short term benefits of forming a community facilities district. He said that the first benefit was that the $75,000 application fee was general fund revenue. He continued by saying that the second benefit was that, if the proposed CFD was formed before the end of 2004, the developer would accelerate the construction of Gladden Farms Road down to Tangerine Farms Road. He noted that the developer was committing to build an extra length of road down to the Heritage Park building and to build a road that they were not otherwise committed to build from that location within Heritage Park over to the ball fields and other park facilities. Mr. Reuwsaat said that the developers had already invested $3M to bring in the sewer system which would also serve Honea Heights. Council Member Comerford said that the developers knew what to expect when they decided to build in Marana. She said that they knew they were purchasing property without sewer, with no infrastructure, and that the Town needed to work with them. She maintained that the developers needed to understand that the land did not have existing amenities and that the Town could not upgrade the properties for them. She said that by the developers proposing the CFD formation, they were showing the responsibility that was theirs already and not imposing a burden on the Town or the residents. 7 Council Member Blake said that, barring any unforeseen circumstances, the developers were going to profit and that, without the CFD, they would have to charge a homeowner an additional $20,000 to $30,000 to cover the infrastructure costs. He conveyed that this would change the level of homebuyer who had the ability to buy a home in Gladden Farms and that it would slow the project's pace down considerably. The Councilman asserted that the homeowner would then carry the added amount within the price of the home throughout the life of a 30 -year mortgage. Mr. Reuwsaat drew the Council's attention to the attendance of Michael Cafiso and Mark Reader, bond counsel and financial advisor respectively, two of the best people in Arizona for protecting the Town's interests in the CFD. He stressed that forming a community facilities district was not treading new ground and that the Town of Goodyear had five or six CFDs set up similarly to the proposed Gladden Farms CFD. He noted that the CFDs had been very productive for Goodyear in terms of growth and the quality of life they had been able to establish as a new community. The Town Manager reiterated his complete confidence in Mr. Cafiso and Mr. Reader's recommendations. Mark Reader addressed the Council. He explained the reasoning for the general obligation bond structure recommendation versus the assessment bond structure. He said that one of the reasons was that the Council did not want the homeowners to have to write a check every six months and that the G.O. bond was recouped from the annual secondary tax levy paid twice a year. He said that in relation to the amount of debt to be issued, there was a cap on the district at $2.50 per $100 assessed valuation. He confirmed that, as the assessed valuation grew, the Town or the district had the flexibility to issue additional debt in the future as they deemed appropriate or as the residents within that area deemed appropriate. Mr. Reader briefly discussed the question of how much bond capacity to authorize. He observed that the developer would recoup expenses either by accepting reduced profits or by increased home prices. He noted that CFDs were not an issue across the State in other communities and that the associated fees were disclosed to the potential homebuyer prior to any sales. He said that developers would attest to the fact that the CFD taxes had not had a significant impact on the sale of property or home sales. Mr. Reader continued by pointing out a positive aspect of forming a district. He said that the developer could sell homes at a lower price thus stimulating area development. He admitted that a property tax was indeed established for the district and would be collected from the homeowners indefinitely. He 8 affirmed that the nature of the property tax depended on how the community shaped in the future and that Goodyear had been experiencing problems as the project's development completed. He said that this had evolved over a ten year period but that residents had become more aware of the tax rate and that it was becoming more of an issue. He explained that the Town's budget would be put under some pressure but that he thought the Town was in a good position to absorb the pressure considering the current general fund balance. He explained that this was a way, especially with the 30C O &M tax that could be levied on an annual basis, for the Town to provide funding for a growing demand for services. He advised the Council to be careful with respect to the nexus of the bond issuance because anything beyond the $23M within the Gladden Farms district had to directly benefit the district otherwise legal and equity issues would come into play. He maintained that the proposed CFD formation was ideal for providing future flexibility should the need arise. He noted that the projections showed that the bonds were going to be issued over a 25 -year period and that they were using conservative assessed valuation growth assumption. Mr. Reader said that the CFD model being used over the next year had a number of credit and enhancement features to ensure that the Town was well protected. He vowed that he and Mr. Cafiso would continue to be actively involved as the Town negotiated the final development agreement. Mr. Cafiso spoke before the Council and gave a brief background of his association with the community facilities district issue. He related that he had been dealing with these types of special land districts since the early 1980s and, in Arizona, since the inception of the statute. He confirmed that CFDs were created to assist the developers. He said that there were pros and cons associated with the formulation of the districts and he complimented the senior staff and Council for their knowledge of the process. He said that the process, relatively new to Arizona, was very time consuming in terms of Town staff. He noted that the developers were going to sell lots at certain prices and, with the CFD, the developer was able to construct their infrastructure off their balance sheets. He explained that the developer would shift that tax burden to homeowners as soon as possible. He confirmed that the cost of the infrastructure paid into the CFD by the taxpayers would have been something that the developers would have incorporated into lot prices if a district was not available. He assured the Council that the lot costs were going to be what the market would bear. He disclosed that a competitive situation had begun to occur in Arizona and developers were leaving communities who were not willing to create CFDs because the developer was able to make more profit 9 Ka m with CFDs. Mr. Cafiso stated that districts were a necessary evil and were here to stay. He assured the Council that he and Mr. Reader would ensure the least amount of risk for the Town. Mayor Sutton asked Mr. Cafiso to comment on the formation of a CFD as a flexible tool for future Councils to use as a rainy day tool. Mr. Cafiso replied that CFDs were a flexible tool only while you have a flexible developer and that there were always unforeseen problems. He said that residents might not allow future Councils to issue additional bonds in the Gladden Farms CFD. He said there were risks on both sides in that respect. He commented that homeowners were fairly tax rate insensitive because taxes are typically paid out of their mortgage escrow account. He said that most people don't even care until someone brings it to their attention. He suggested that the Town get the tax rate in place as quickly as possible and get people used to seeing it on their tax bill. He said that a CFD tax was no different from a school district, a fire district, or a water district. He stated his belief that the developers were at a much larger risk than the Town. Mayor Sutton asked if the 30¢ O &M would cover the staff and costs associated with the district. Mr. Cafiso replied yes. Council Member Honea thanked Mr. Cafiso for making his point much more eloquently than he could himself. He said that he intended to vote for approval of the CFD because he thought that the $23M up front for the Gladden Farms infrastructure was very important for north Marana. He went on to say that the other $46M was a really, raw deal. He pointed out that Mr. Cafiso had made a good point when he said that it may backfire on the Town at some point in the future. He voiced his opinion that if the Town ran the CFD in perpetuity at $2.80, it would cause major problems in the long run. He said that he believed the Town should issue the $23M or $25M for safety purposes but he was vehemently against using a district as a taxing mechanism for perpetuity. Mayor Sutton said that he believed the $46M was what the financial advisors were calling the Council's flexibility. He said that the full capacity never had to be used. Mr. Cafiso replied that the Mayor was correct. He said that the way it had been discussed provided a lot of flexibility for the Council and the developer to go forward. He assured the Council members that checks and balances would always be in place. 10 Mayor Sutton asked if the developers wanted to speak on the topic. He commented that this was a huge decision for the Council and he hoped that everyone would be open and voice any concerns. Dean Wingert, representing the Forest City Land Group and as the managing partner of the Gladden Farms development, addressed the Council. He thanked the Council for the special study session and said that this had been a painful process since the initial application over a year ago. He reported that diligent work had been applied to produce different versions and lifecycles of the proposed community facilities district. He observed that the comments and impressions of the Council were insightful and it was obvious that the Council had given this issue plenty of thought. He said that the infrastructure was going in as the development called for it and that it was being funded by the developer. He mentioned that the CFD bonding mechanism moved very slowly and reimbursement was made over a very long and extended period of time. He challenged the statement that the initial $23M was all for the developer with nothing for the Town. He stated his belief that Town staff had listed additions to the development agreement for Gladden Farms specifically for the formation of the CFD in terms of additional roadways, utility extensions, expedited construction of other items, a solution to the off -site Tangerine Farms Road extension, and a significant cash upfront payment. He contended that all of those items were clearly for the Town's benefit. He concluded by stating that he looked forward to working with the Town to develop a quality product in the Gladden Farms project. He said that it was time for a go or no -go decision because the builders were ready to begin the home sales process. Vice Mayor Kai said that he understood Mr. Wingert's point. He expressed his belief that the CFD would be good for everyone involved. Mayor Sutton commented that the Gladden Farms group had pioneered the CFD process in Marana and that the next developer approaching the Town would have an easier, quicker process. He noted that the Council wanted to be sure that the Town was protected and that their promise of not imposing an overall property tax was kept. He pointed out that decisions such as those made relating to the formation of a communities facilities district would put the Town in an economic situation in the future to keep those types of promises to their constituents. He asked that the senior staff present the Council with a report outlining the CFD impact on the Town when the • population was at 75,000. 11 Mr. Barr said that he was prepared to provide the Council with figures indicating what the O &M costs would be in the district versus what would come from the general fund if there was no CFD in place. He said that he could compile assumptions based on a per household cost of service. The Mayor continued by saying that the Town had to play devil's advocate and look at the worst scenario that might occur. He said the planning of the CFD was rainy day insurance for the health and safety of the future Marana residents. He noted that this would go down in history as this Council's legacy and he gave his sincere gratitude to the staff for their hard work. Upon motion by Council Member Honea, seconded by Council Member Blake, authorization to direct staff to bring forward to Council documents necessary to establish the Gladden Farms CFD and an amended Gladden Farms development agreement was unanimously approved. XII. ADJOURNMENT The Mayor adjourned the meeting. The time was 7:32 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the CFD Study Session held on January 21, 2004. I further certify that a quorum was present. Jocelyn Bronson, Town Clerk 12 • ta N �F 1 7 9 7 gRIZONP STAFF REPORTS TO COUNCIL Building Parks & Rec Town Clerk Planning Court Police Finance VPW /Engineering Human Resources Water • TOWN OF MARANA MUNICIPAL WATER SYSTEM DEPARTMENT REPORT For: January 2004 BY CONSERVING WATER IN OUR EVERYDAY LIVES, WE TOO CAN HONOR THIS DESERT WE CALL HOME w Date: February 10, 2004 w • MARANA I � TOWN OF MARANA TEAM WORK — Is all staff working together in outstanding ways, with extraordinary cooperative effort to accomplish ordinary tasks TO: Mayor Bobby Sutton, Jr. Town Council Mike Reuwsaat, Town Manager FROM: Water Department Staff SUBJECT: January 2004 Department Report Update DATE: February 10, 2004 CUSTOMER INFORMATION 2191 Number of Customers Billed in January 68 Number of Disconnects in January 83 Number of New Connects in January 50 Number of New Services with Meter Installation 18,144,055 Total Gallons sold in January 28.55 Acre feet pumped (non -trust wells) Picture Rocks, Happy Acres, Palo Verde, Airport, Sky Diving Center, Continental Reserve and Hartman Vistas 31.70 Acre -feet wholesale water purchased (trust wells) Marana, La Puerta, Oshrin, Falstaff, Honea, and Cortaro Ranch (325,851 gallons = acre foot) • DAILY OPERATIONS 1. 258 Blue Stakes completed in January. 2. Daily Operations report will be included with the next months report. WATER SERVICE AGREEMENTS BEING NEGOTIATED 1. Discussion with Arcadias Engineering for water service west of Hartman Vistas and south of Linda Vista. 2. 6 inch main loop Camino Verde and Tres Casas completed. 3. San Lucas development water service agreement is in finaled. 4. Acacia Hills infrastructure, part of Hartman Vistas water service agreement infrastructure is being designed. 5. Purchase of Sunset Ranch Estates (S.R.E.) on Pima Farms Rd from Tucson Water. Proceeding contract is drafted. Water service to Stardance, Studebaker Drive and others c ontract a ward w ork s tarted 2 /9/04 w ill b e s erved from the back of S. R. E. which is served by Continental Reserve. 6. Discussions with Cartlier -Pena Enterprises on water service for 80 acres on Camino De Manana. 7. Addendum to Continental Reserve Water Service Agreement for Pima Farms Village. OTHER 1. Purchase of Type II Non - Irrigation Rights for parks and other needs. 2. Managed Recharge Intergovernmental agreement is completed and is signed by everyone except Bureau of Reclamation and the Secretary of Interior. The Arizona Department of Water Resource h as i ssued t he p ermit. L ong t erm s torage c redits can be accrued. CMID is the operator of the project. 3. Pilot water treatment of Picture Rocks system is installed and operating. Will keep you informed as it progresses. 4. Non - potable system is in the design stages and is being discussed and presented to staff and developers. 5. La Puerta well is in discussion with Cortaro - Marana Irrigation District. 6. Non - potable system and storage is in the discussion stage, for the east side of 1 -10, from Tangerine Rd. to the Pinal County line. 2 •rf PUBLIC WORDS — MARANA S'T'AFF REPORT a r .. ._..'w,.. + +.s,ti..ax....,:d;: * -szs. . ^n ... ..-x; rte *.:. +vh^.w.a_.,.xn.,s+rr.:sz ,. •;i}c._.,..s ,re<:a€:.e'M °.r �:...:3 ', February 2004 Capital Improvement Projects (St o�nopoe or the ,The following are capital improvement projects in design. Ina Road Roadway Improvements Ina Road Bridge Improvements- Bridge Capital Improvement 1 -4 1 -10 to Silverbell Road over the Santa Cruz River Projects in Design This project consists of roadway improve- This project consists of constructing a new ments including design and reconstruction bridge over the Santa Cruz River south of Capital Improvement 5 to widen to four lanes with multiuse lanes, the existing bridge. Construction will also 1 Projects In Construction median island, curb, curb and gutter and include rehabilitating the existing Grade a Recently Completed g ; sidewalk installation, drainage improve- Control Structure, extending the soil ce- Projects ments, landscaping, si signal modifications, ment/concrete floor protection to include F 9 Traffic Division Report 7 artwork and street lighting. Project is 1.1 the new bridge, reconstructing the soil miles in length. cement bank protection on the east and Public works Arts g west side of the Santa Cruz River. The Project Committee Estimated construction time: To be deer- reconstruction of the bank protection will t j j include provisions for a pedestrian path. i mined i Estimated construction time: To be r Status: 404 Permit application has been determined i submitted. First year of Pygmy Owl Survey has been completed. The Traffic Impact Status: The bridge improvement plans, I PUBLIC WORKS Analysis, Phase I Environmental Site As- DCR, Bridge Selection Report, Bridge 3 the amended MISSION AND VALUES sessment, Archaeology, 9y, Stability Analysis and the amended Bridge Bridge Inspection, Bridge Stability Analysis, Inspection Report have been submitted to "The Marana Public Works Grade Control Stability Analysis, Bridge ADOT, Phoenix office, for their initial ? Department is committed to Selection, Location and Geotechnical (for review and comments. providing quality service by Traffic Signals) reports are complete and consist deliveri and have been accepted; NPPO Plan has been Y g accepted and Draft Access Management maintaining reliable, safe Report is on hold at this point in time. Ac- public facilities with a cess Management acceptance letters have productive, respectful and been received by the consultant from the ethical workforce. " abutting property owners. The Town has Our operating values are: submitted 75% improvement plan comments i s" • Satisfaction to the consultant. Revisions to be submitted 3 to the Town in mid - February. j • Respectful l • Communication • Reliable s • Productive j • Quality r 3 • Ethical • Consistency • Service { • Safety • Integrity j • Commitment February 2004 0 Capital Improvement Projects in Design (continued) Tangerine Road/Thornvdale Road Intersection Twin Peaks Interchange Improvements This project consists of environmental clearances, DCR This project consists of design and construction for and 15% plans for the corridor alignment, Phase I; final intersection improvements. design for TI, grade separated railroad structure and connection to the roadway system to the east, Phase II. Estimated construction time: First Quarter of 2004 Estimated Construction Time: 2006 Status: A nationwide permit has been issued by the Army Corps of Engineers to encompass this project and Status: The Town has concluded the second meeting with the Tangerine overlay project. A contractor has been se- the Environmental Focus Group and the Technical Advi- lected and the date of the Notice to Proceed is to be de- sory Committee. The Town is in receipt of the Drainage termined. Report, AASHTO Design Criteria, Initial Site Assessment, Initial Traffic and Existing Hydraulic Conditions Reports; DCR for the Ina Road Corridor Project they have been distributed to the appropriate party for This project will involve the development of a Design Con - review and comment. The consultant, URS Corporation is cept Report to improve Ina Road and the area south of Ina collecting data for a variety of tasks associated with the Road between Thomydale Road and Camino Martin ex various reports related to the project. Town staff and the tending to Orange Grove Road. consultants are processing the comments received from participants of the first open house and the planning for the Status: The Statement of Qualifications (SOQ's) have second open house. been received. The SOQ's will be held for six months. At that time the Town may award a contract. District Park Bank Protection This project consists of providing bank protection along the west bank of the Santa Cruz River from Ina Road to Cortaro Road. • Status: Tetra Tech is the design engineer. Revised phas- ing plans are expected back from the engineer by the first quarter of 2004. An individual 404 permit application has been submitted to the Army Corps of Engineers and is an- ticipated by Spring 2004. Construction is anticipated to be- gin in July 2004. • Page 2 PUBLIC WORKS .Y . <w x* tse: a...,. X'- C.:.: hh„-« fl'.' �: YBkik^.; 9W: a' 4�d 'y?15�'- G:.u€- u.`9':3".dR%&� - T:e:3 &..F�fiJA s..:.:.:...Y1....ve. .:': ?0�4&XSkCW:2"k S= x:3'>.Y. S— .,.ot. .uJ3:+Tti§'3sat„" "Y.Biti.'Y#4kiF:4.a. #er++� -.. �.;:� %K'�S.+T S..: w. 4. February 2004 Capital Improvement Projects in Design (continued) • Thornvdale Road Improvements /Orange Grove Road To Silverbell Road Improvements CDO Wash Cortaro Road to Ina Road This project consists of reconstructing Orange Grove Road/ This project consists of reconstructing the roadway to Orange Grove to the CDO Wash along with the reconstruction/ four lanes with curb and gutter, multipurpose lanes widening of the approach roads; sidewalks, curb, curb and and sidewalks, and providing for a continuous center gutter, traffic signal modifications, drainage facilities, median turn lane, sanitary sewer system construction and islands, street lighting and art work. intersection improvements at Ina/Silverbell, which includes a new traffic signal system. Estimated construction time: To be determined Estimated construction time: Third Quarter of 2004 Status: The 75% improvement plans will be re- submitted fol- lowing the re- scoping of the project. The Phase I Environ- Status: Environmental, Biological, DCR, Geotechnical mental Site Assessment, Cultural Resources, Drainage and Report, Pavement Design Summary, Archaeological Geotechnical (for traffic signals) Reports have previously been and Drainage reports are complete and have been accepted. The reports will be updated to account for the new accepted. The 404 Permit application has been sub- project limits as necessary. miffed to the Army Corps of Engineers (ACOE) and review is ongoing. Third year of Pygmy Owl Survey Santa Cruz River Shared Use Path, Phase I and II has been completed. ACOE is still in the process of This project consists of the design and construction of a 14' reviewing the plan as submitted by Old Pueblo. The wide paved asphalt path from Cortaro Road to Coachline Blvd. Town is in receipt of the final Sanitary Sewer Basin via the Ell Rio Park development. Study and the study has been accepted by both the Town and PCWWM. The sanitary sewer plans have Phase I consists of building a shared use path between Cor- been reviewed byPCWWM and revisions are being completed. Comments on the 90% plans have been taro Road and Twin Peaks Road in the over bank and interme- completed and returned to the Consultant for incorpo- diate bank areas of the Santa Cruz River. Phase II consists of ration into the 100% plans. A public open house was a continuation of the shared use path in Phase I from Twin held on January 15, 2004. Peaks to El Rio Park. Each phase is partially funded under • ADOT's Transportation Enhancement Program. Construction Town of Marana, Northwest Marana Town Center will need to be completed such that the ADOT funds are prop- erly tracked; however, design can be completed as a single Design and Development project Three projects are ongoing to master plan and estab- lish the layout, ambience and design standards of the Estimated construction time: Second Quarter of 2004 Northwest Marana Town Center. Status: The Environmental Determination (ED) has been ac- Northwest Marana Town Center, Master Plan cepted by ADOT. In late April 2003, the Town selected Castro Prolect Engineering for the path design and Structural Grace for de- This project will provide Master Plan Services for fur- sign of the pedestrian bridges. The 100% plans are scheduled ther planning and conceptualization to set design and for submittal by the end of February 2004. The artistic con- development standards to facilitate the urbanization of cepts for the project have been presented and endorsed by the the Northwest Marana Town Center. Mayor and Council, Marana Parks Committee, the Public Works Arts Project Committee, the Continental Ranch and Status: Durrant Group and McGann and Associates Sunflower Homeowners Associations, an HOA public meeting, continue the master planning of the rest of Ora Mae the Construction Committee and the Building Committee. Ham District Park and the areas south of the park and Municipal Complex. The Town will work with land owners and developers for further use of the Town Center land. Selection of designers is currently under consideration for the concept design of the greenbelt and linear park that will follow the current Barnett Road route and also provide storm water relief to di- vert water away from the Town Center. • Page 3 P UC WORKS a. , _.,.__ _a.. _ February 2004 Capital Improvements in Design (continued) • Town of Marana Municipal Complex ( Marana DCR for Camino de Manana/Dove Mountain Extension "MuniPlex ") This project will involve the development of a Design Concept This project consists of the design and construction of a Report for the possible realignment of Camino de Mariana new Town Government Complex and will integrate the from its intersection with Linda Vista Boulevard to an align - Muniplex and surrounding facilities with the Ora Mae Ham ment with Dove Mountain Boulevard at Tangerine Road. Park which will eventually abut a linear greenbelt park that will run from 1 -10 to the Santa Cruz River. This linear park Status: The Town has selected a consultant and a scoping will also serve as a relief conduit for excess water from the meeting has been completed. The Notice to Proceed should Tortolita Mountain fan run off. be issued in the first quarter of 2004 following approval of the scope of work and contract negotiations. Status: During January, D.L. Withers, the CM, placed concrete slab in the curved wall in Building A, the ad- Moore Road Improvements ministration building in front of the Council Chambers. This project consists of providing 24' wide chip seal with They also brought the masonry block work in Building A graded shoulders and at grade drainage crossings. The pro- for the Council Chambers side walls and the wall be- ject limits are from Camino de Oeste to Thomydale Road. tween the Chambers and the entry lobby atrium to ap- proximately 85 %complete. Masonry had to be sus- Status: The Notice to Proceed was given to the design con - pended until the front curved wall concrete is com- sultant on October 23, 2003. Design is estimated to take five pleted, and the cooling tower, generator yard and other months with construction anticipated to begin May 2004. block work is released. More Structural Steel was re- ceived and erection on Building B/C the courts and jus- DCR/Design for Honea Heights Roadway Improvements tice building began in the first part of January. All of the vertical columns and horizontal beams were completed .This project will involve the development of a Design Concept in Building B and the breezeway connection between Report and subsequent construction plans for roadway and drainage improvements for Honea Heights subdivision, located Building A and B. Roof joists were placed, and the cor- between Sanders and Sandario Roads, between Moore Road rugated steel decking was placed on the individual • and the Santa Cruz River. floors. At the end of January plumbing, squaring, align- ment and bolting of the steel was in the process. Erec- t Status: The Statements of Qualifications have been received ion of Steel on Building C is scheduled for early Febru- ary and on Building A late February or early March. and reviewed by an internal selection panel is underway: A model of the project is located in the Town Hall for viewing. DCR/Design of Barnett Linear Park and Flood Control Project Northwest Marana Town Center Roads Infrastructure This project will involve the development of a Design Concept and Offsite Improvements Report and subsequent design of Barnett Linear Park and This project will design and construct the offsite utilities, Flood Control Project. The project consists of utilizing the ex- roads, landscape, and other infrastructure and establish isting Barnett Roadway alignment for a major outlet channel/ the layout of the main Town Center condors. linear park from 1 -10 to the Santa Cruz River. Status: During January, D.L. Withers, the CM, working Status: The Town has selected a consultant and a scoping with the Building Department, Dan Groseclose, Public meeting has been scheduled. The Notice to Proceed should Works and the residents, continued connecting the be issued in the first quarter of 2004 following approval of the available sewer connections for residents on Grier scope of work and contract negotiation. Road west of the future Marana Main Street, and will continue to complete those connections for Grier Road residents to Lon Adams. The roads were surveyed and staked for the Town of Marana potable and non - potable effluent water in Marana Main Street. Conceptual Drawings for the extension of Marana Main Street north of Grier Road were received from WLB. Excavation and installation of water on Marana Main Street and Civic Center Drive is to begin in early February. TEP contin- ued new power poles and overhead work on Grier Road to accommodate the new construction that will take place on that road. PUBLIC WORKS Page 4 February 2004 Capital Improvement Projects In Construction • The following are capital improvement projects in construction. El Rio Park The project consists of paved paths, landscaping, a shaded play and sitting area, and a half court basket- ball court. The park was originally designed by Novak ' 4 Environmental and the Town completed the design with the incorporation of additional elements. Status: The construction performed by Young and Sons has been completed and accepted by the Town. Linda Vista Boulevard This project consists of chip sealing approximately 3/4 mile of roadway from Camino de Mariana east to approximately Hartman Lane. Status: The construction contract has been completed by Pima Paving, punch list work is in progress. Twin Peaks and Scenic Drive Intersection Improve- ments This project consists of relocating the current Scenic Drive intersection with Silverbell Road to the south to line up with Twin Peaks Road at Silverbell Road. This is a safety improvement that provides direct access to the future Linda Vista/Twin Peaks traffic interchange at 1 -10 through Twin Peaks Road. The project will include installing culverts, paving, curb and gutter, and signing and striping improvements. This project also has a wa- terline lowering and landscaping improvements. Status: Construction began mid October and is ex- pected to run through mid April 2004. Tangerine Road - Breakers to Thornydale Road Improvements This project consists of drainage improvements and repaving of portions of Tangerine Road. The Town has decided to pursue a maintenance oriented program for the road and Tetra Tech generated construction plans for advertisement. Status: Southern Arizona Paving began construction in November 2003 with Tetra Tech as the design engi- neer, performing construction administration for the = Town. Construction is anticipated to continue through" mid April 2004. • Page 5 PUBLIC WORKS February 2004 Recently Completed Projects Cortaro Road Improvements, Sllverbell Road to 1 -10: Completed February 2003. Wade Road: Completed February 2003. Continental Ranch Neighborhood Park: Completed February 2003 Coyote Trails Elementary School Park and Parking Lot Addition: Completed February 2003 Santa Cruz Corridor Trail: Completed April 2003 Costco Street Lighting: Completed May 2003 Sandra Road Bus Turnaround: Completed June 2003 Emigh Road Driveway at Marana High School: Completed June 2003 Cortaro Road Realignment: Completed July 2003 2003 Pavement Preservation: Completed July 2003 Coachline Boulevard Sidewalks: Completed October 2003 Cortaro Road Improvements S Z 1: i Continental Ranch Neighborhood Park • Page 6 PUBLIC WORKS February 2004 o Traffic Division Report o o Cortaro Road Traffic Signal Coordination Study Speed Zone Studies on Ina Road and Thornvdale In order to improve the traffic flow on Cortaro Road be- Road tween Silverbell Road and 1 -10, a study will be conducted These studies will determine whether the regulatory speed to determine how the progression of traffic between those limits currently posted on these roadways are appropriate two points can be enhanced. Kimley -Horn and Associates, based on the existing traffic conditions. The speed zone in conjunction with ADOT, will be reviewing the need to studies considered the current traffic volumes on these modify the signal phasing and timings at the Cortaro streets, the prevailing vehicular speeds, the accident his- Road/1-1 0 Frontage Roads Intersections. They will also be tory on both roads, and the existing access management looking at the need to improve the coordination between conditions on the roads. The result of the study revealed the signals at Silverbell Road, Arizona Pavillions Drive, that the 45 mph speed limits currently posted on these and at the 1 -10 intersections. It is expected that the study roadways are appropriate for the prevailing traffic condi- will result in a smoother and safer traffic flow along this tions. heavily- traveled section of Cortaro Road. Traffic Signal at Silverbell Road -Wade Road Intersec- Juan Batista de Anza National Historic Trail Signs tion At the request of the Traffic Division, the Operations and A traffic signal study conducted at the Silverbell Road- Maintenance Division has recently installed auto route Wade Road intersection found that the installation of a signs commemorating the Juan Bautista de Anza National traffic signal is warranted at that location. It is expected Historic Trail, which traverses the Town. (The trail actually that the signal will be designed during this fiscal year and stretches from Nogales, Arizona to San Francisco, Califor- will be constructed next fiscal year. The signalization nia). Approximately 30 signs have been installed along should make this a much safer intersection for motorists Silverbell Road, Avra Valley Road and other roadways to exiting Wade Road, pedestrians crossing Silverbell Road help guide motorists who wish to follow the trail through as well as emergency vehicles entering the intersection the Town. from the Northwest Fire /Rescue District's station on Wade Road. An engineering consultant has been selected for . Safe Routes to School Program designing the signal. The Traffic Division has recently initiated a Safe Routes to School Program. The program's goal is to develop educa- Warning Beacons at the Avra Valley Road— Sandario tional, engineering and enforcement tools with which to Road Intersection help provide safe trips for elementary and middle schools A traffic signal warrant study was conducted at the Avra students on their way to and from school. The program Valley Road-- Sandario Road intersection. The results of will develop a documented process so that those immedi- the study found that a traffic signal is not recommended at ately involved with the program (traffic engineering staff, the intersection at this time. However, in order to enhance police, school administration staff, teachers and parents) the safety at this location, flashing warning beacons will be all understand the procedures and their respective roles in installed on the Side Road warning signs currently posted the process. Twin Peaks Elementary School has been on the Avra Valley Road approaches to the intersection. It chosen as a pilot school for the program. We have met is expected that the warning beacons will help greatly to with the school's principal, the school's Police Resource better alert motorists about the approaching intersection. Officer, and the Marana Unified School District's Director At this time the required beacon assemblies have been of Operations to begin the process of organizing a Safe purchased and the project is under design. Routes to School Committee, which will be responsible for overseeing this program. Traffic Signal Study at the Cortaro Farms Road- Cerius Stravenue Intersection A traffic signal study at this intersection will include turning movement counts, accident data research, observations of the traffic operations, and a sketch of existing conditions. The study showed that a traffic signal is not warranted at this location at this time. All other appropriate traffic con - trol devices were found to be in place and visible to motor- ists. • Page 7 PUBLIC WORKS . ^.t..� 1'k fi ..?4. -xti: ri'W..23..:£ l n .4 :e, .._ . s.i T,W tiY2" .. K ._'x...%rt .„k 4E>i- �;4 °- +'R4:�Pzts ei rr4'iGa"1•Rn.� February 2004 Public Work Art Project Committee The Public Art Project Committee did not meet in January. There is not yet a scheduled meeting for February. Committee Members: Curt Ench, Chair. Brian Jones, Vice Chair r Sally Jackson Kathy Price Margaret Joplin Nancy Lutz L _ A2111 - r '�' 3 • Page 8 PUBLIC WORKS .. __:1FF. U.r`. .'C,F ,4G '.x RY «3 %�'- Sa=T.. ,W "?L{a_ - 3£'. �.�TU�'t,= ry: "��'� °^kufi KaR��, -f,rv. -� . .,,'tk - �s5t u^.'.�.i', r*:r ..-.. _a a.� _r -. i,.. �,t> _�•- ..c..i • CIP MONTHLY SCHEDULE SUMMARIES January 2004 Project 99 -003: Santa Cruz River Shared -Use Path & Santa Cruz River Pedestrian Bridges To design and construct a 14 -foot wide asphalt path along the west bank of the Santa Cruz River, Cortaro Road to the north end of Continental Ranch. Two pedestrian bridges provide major drainage crossings for the path. Milestone dates: 95% plans for path and bridges were submitted December 19, 2003; Beginning of construction targeted for 2 nd Quarter, 2004; End of construction targeted for 4 th Quarter, 2004; Project 99 -049: Tangerine Road Improvements — Breakers to Thornydale Construction for shoulder widening, drainage improvements and pavement overlay. Milestone dates: Bid opening was October 20, 2003; Beginning of construction was November 24, 2003; End of construction targeted for 2 nd Quarter, 2004; • Project 99 -050: Silverbell Road, Cortaro Road to Ina Road Roadway reconstruction and drainage improvements. Milestone dates: 100% plans expected 1 St Quarter 2004; ACOE 404 Permit expected 2 nd Quarter 2004; Beginning of construction targeted for 3r Quarter 2004; End of construction targeted for 3 Quarter 2005; Project 99 -053: Ina Road Corridor Project Develop a Design Concept Report for Ina Road, Costco Drive, Regency Plaza and Camino Martin. Milestone dates: Statements of Qualifications were received October 30, 2003; Panel evaluations received December 19, 2003; SOQ evaluations on hold until 3rd Quarter 2004 • HASHARED FILES -2UPUP Schedules.doc I • Project 99 -095: Town Hall Milestone dates: Targeted (Substantial) Completion Date: Building A, Council Chambers & Administration, November 2004; Building B /C, MPD /911 /Courts, October 2004; Targeted Move -in Date: Building A, Council Chambers & Administration, December 2004; Building B /C, MPD /911 /Courts, November 2004; Dedication, Founders Day 2005; Project 99 -095: Town Center Roads and Utilities Milestone dates: Targeted (Substantial) Completion Date 4 Quarter 2004 Project 2000 -21A: Ina Road, Silverbell Road to I -10; Roadway Improvements Roadway reconstruction and drainage improvements. Milestone dates: 75% plan comments from the Town and ADOT were returned to the consultant December 31, 2003; • Consultant will incorporate Town and ADOT comments into 75% plans and the Town will shelve the project in 1 Quarter 2004; Project 2000 -21B: Ina Road, Bridges over the Santa Cruz River Replace existing Ina Road Bridge and associated roadway improvements. Milestone dates: 90% plans expected I" Quarter 2004; ACOE 404 Permit expected 2nd Quarter 2004; Beginning of construction TBD; Project 2001 -12: Youth Transportation Art Program To utilize a PAG transportation enhancement grant in the amount of $25,000 for the public art component for Silverbell Roadway Improvements. Milestone dates: Preliminary designs were presented to Public Arts Committee October 1, 2003; Preliminary designs were presented to Pre - building committee October 2, 2003; Preliminary designs were presented to Building committee October 14, 2003; Preliminary designs were presented to Mayor and Council October 21, 2003; Completion of art component targeted for 1" Quarter 2004; • HASHARED FILES -2 \CIP \CIP Schedules.doc 2 • Project 2001 -43: Tangerine /Thornydale Intersection Realign and improve the intersection, including drainage structures and signalization. Milestone dates: Bid opening was October 13, 2003; Beginning of construction targeted for 1 St Quarter 2004; End of construction targeted for 3rd Quarter 2004; Project 2001 -44: Linda Vista /Twin Peaks TI @ I -10 Design and construction of a new TI on I -10 at Twin Peaks Road/Linda Vista Boulevard. Milestone dates: DCR/EA and 15% Improvement Plans completion targeted for 4 th Quarter 2004; Final Improvement Plans completion targeted for 3r Quarter, 2006; Project 2001 -52: Camino de Madana/Dove Mountain Extension Develop a Design Concept Report for the potential realignment of Camino de Mariana to align with the Dove Mountain/Tangerine Road intersection. Milestone dates: NTP for DCR expected 1st Quarter 2004; • Project 2002 -02: Honea Heights Sewer Improvements Provide coordination with Pima County sewer main design and construction. Provide coordination with HCS connections to existing properties within the project area. Milestone dates: Sewer main plans approved by Pima County in October 2003; Pima County anticipates construction beginning between 4 th Quarter 2004 and 1st Quarter 2005; Project 2002 -04: Santa Cruz River Bank Protection Design of bank protection along the west bank of the Santa Cruz River from Ina road to Cortaro Road. Phase I of the project will be from Cortaro Road to Yuma Wash. Milestone dates: ACOE 404 Permit expected 2 nd Quarter 2004; Beginning of Phase I construction targeted for 3 Quarter 2004; End of Phase I construction targeted for 1st Quarter 2005; • HASHARED FILES -2UPUP Schedules.doc 3 J • Project 2002 -06: Sandra Road, Phase II, Pavement Extension Extend the paving from Sandra Road and Sunshine Lane to the north for an additional' /4 mile, addressing rights -of -way and drainage issues. Milestone dates: Negotiate and complete design contract with EEC, Inc. as soon as Scope is revised; Project 2002 -14: Santa Cruz River Corridor Trail Provide DCR and design for path alignment, landscaping and irrigation and parking facilities for the linear path located on the levee of the Santa Cruz River from the end of Phase I alignment to Gladden Farms. Milestone dates: Select consultant for design 1 St Quarter 2004; Design completion is targeted for 3 rd Quarter 2004; Construction to be completed by 1 St Quarter 2005; Project 2002 -17: Linda Vista Blvd. Complete the design and construction for chip sealing Linda Vista Blvd. from west of Hartman Lane to the intersection of Camino de Mariana. • Milestone dates: Construction substantially complete October 15, 2003; Final acceptance will not be issued until punch list items have been resolved; Project 2002 -18: Moore Road Improvements Provide design and construction for the chip sealing of Moore Road from Thornydale to Camino de Oeste. Milestone dates: Draft construction package expected February 2004; Final construction package expected March 2004; Beginning of construction targeted for April/May 2004; End of construction targeted for June 2004; Project 2002 -26: Scenic Drive Safety Improvements Realign Scenic Drive to match up with Twin Peaks Road at Silverbell Road. Milestone dates: NTP for construction was October 6, 2003; End of construction targeted for 2 nd Quarter 2004; • HASHARED FILES -2UPUP Schedules.doc 4 Project 2002 -58: Thornydale Road, Orange Grove Road to CDO Wash Roadway reconstruction and drainage improvements. Milestone dates: 90% plans expected 1" Quarter 2004; 100% plans expected 2nd Quarter 2004; Projected Construction Start TBD; Project 2003 -08: Signalization of Silverbell Rd/Wade Rd Intersection Milestone dates: Revised estimate received from Kimley -Horn on December 17, 2003; _ NTP for design expected January 2004; Design completion targeted for 2nd Quarter 2004; Projected Construction Start TBD; Project 2003 -14: Honea Heights Roadway Improvements DCR and design for roadway and drainage improvements in the Honea Heights subdivision. Milestone dates: SOQ panel evaluations expected February 2004; NTP for design expected 1 St Quarter 2004; • Project 2003 -16: Barnett Linear Park and Flood Control Project Provide DCR and design for the construction of the Barnett Linear Park and Flood Control Proj ect. Milestone dates: SOQ panel evaluations completed on November 21, 2003; NTP for DCR and design expected lst Quarter, 2004; Abbreviations: ACOE: Army Corps of Engineering ADOT: Arizona Department of Transportation CIP: Capitol Improvement Project DCR: Design Concept Report EA: Environmental Assessment HCS: House Connection Sewer MPD: Marana Police Department NOA: Notice of Award NTP: Notice to Proceed PAG: Pima Association of Governments SOQ: Statement of Qualifications • TBD: To be Determined TI: Traffic Interchange H:ASHARED FILES- 2 \CIP \CIP Schedules.doc 5 TOWN TOWN COUNCIL OF MEETING MARANA INFORMATION DATE February 17, 2004 AGENDA ITEM: IX. A. l TO: Mayor and Council FROM: Michael A. Reuwsaat, Town Manager SUBJECT: Resolution No. 2004 -18: Authorizing the renewal of an Intergovernmental Agreement with Pima County for payment of incarceration of municipal prisoners. DISCUSSION: The Town of Marana and Pima County have entered into an Intergovernmental Agreement (IGA) setting forth a fee schedule for the housing the municipal prisoners. The IGA requires renewal on an annual basis, and the current IGA expires June 30, 2004. The renewal of the IGA for the period July 1, 2004 through June 30, 2005 will be $54.86 per billing day. A "billable" day includes a day or fraction of a day beginning at 0000 hours and ending at 2359 hours the same day. This fee encompasses each Town of Marana prisoner who is an inmate in, or under the control of, detention facilities maintained and operated by Pima County. RECOMMENDATION: Staff recommends that Council authorize the renewal of the IGA with Pima County for the housing of municipal prisoners for the period July 1, 2004 through June 30, 2005, in the amount of $54.86 per billable day. SUGGESTED MOTION: I move to approve Resolution No. 2004 -18. ADMIN /CLERK/02/ 10 /2004 i Town of Marana Contract No. INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF MARANA AND PIMA COUNTY FOR PAYMENT FOR THE INCARCERATION OF MUNICIPAL PRISONERS THIS INTERGOVERNMENTAL AGREEMENT, entered into pursuant to ARS § 11 ®952 (as amended) by and between: THE TOWN OF MARANA, a municipal corporation, (hereinafter sometimes referrred to as the "Town "); and THE COUNTY OF PIMA, a body politic and corporate, a political subdivision of the State of Arizona, (hereinafter sometimes referred to as the "County "), NOW THEREFORE, THE TOWN AND COUNTY HEREBY AGREE AS FOLLOWS- 1. County will receive and detain all municipal prisoners who are medically fit to be incarcerated by County. County will provide booking services, and after booking, it will provide for the care, feeding and medical care of said prisoners, except as covered in paragraph 8. 2. Town of Marana will pay a first day billing rate of $86.43 dollars to cover booking and records expenditures and prisoner housing. For each prisoner day following the first day, the Town of Marana shall pay $54.86 per day. The two rates are applicable to the period of July 1, 2004 through June 30, 2005 and shall be calculated as set forth in exhibit A. The billing day as defined herein applies to each Town of Marana prisoner who is an inmate in, or under control of the detention facilities maintained and operated by the County. 3. "Town of Marana Prisoner" shall mean any person who has been incarcerated as a -result of a charge pending in the Town of Marana Court, as a result of an agreement between the Town of Marana and another jurisdiction to allow the person to serve his sentence locally, or has been sentenced pursuant to an order of the Town of Marana Court and for whom the Town of Marana has the Legal obligation to provide or pay for prisoner housing (this Agreement does not create such an obligation, that obligation exists under current Arizona Law). A person who is a prisoner because of wi in-custody charge and a charge pending in Town of Marana Court or a sentence Page 1 of 6 imposed by the Town of Marana Court, is not a Town of Marana prisoner. A prisoner arrested by the Town of Marana Police Department on another governmental entity warrant is not a Town of Marana prisoner. 4. Criteria and Rules Governing Billing: .a. A "billable day" is defined as that period commencing at 0000 hours and ending at 2359 hours that same day, or any fractional part thereof, of any day the Town of Marana prisoner is in the custody or control of detention facilities maintained and operated by the County. b. "Billable Custody" is defined as any pretrial custody involving a misdemeanor offense which will be tried or adjudicated in Town of Marana Court; OR, any custody pursuant to a sentence imposed by the Town of Marana Court. 5. Criteria for Assessment of Billing: a. The costs of incarceration of Town of Marana prisoners shall commence on the day the inmate was booked or held based upon a Town of Marana charge into Town of Marana Court or sentenced by Town of Marana Court. Costs for incarceration shall cease under the guidelines established earlier in this agreement under the definition of "Billable Day." b. When a prisoner is in custody for a charge or sentence from more than one Municipal court, the billing charges shall be apportioned based on those days of joint custody. Costs for incarceration shall be apportioned evenly between municipalities. If two municipalities have pending charges on a prisoner, each municipality will be charged for half the cost for each day that joint custody exists under guidelines established under the definition of "Billable Day." C. A Town of Marana prisoner who is subsequently charged into Pima County Court and held in- custody on County charges, will cease to accrue billing charges after 2359 hours on the date that custody for County charges is established. County custody shall take effect on the date when charging information is received in the Pima County Adult Detention Center Records Section and the prisoner is actually being held in- custody on the County charges. Also, a County prisoner who subsequently becomes a Town of Marana prisoner will commence to accrue billing charges after 2359 hours on the date that County custody ends. d. In the event of an escape, billing charges will cease to accrue after 2359 hours of the day of escape, or, in the case of a failure to report from authorized leave, billing charges will cease after 2359 hours of the last day of custody. Page 2 of 6 Billing charges will begin again on the day that the prisoner is recaptured and is actually being held in the Pima County Detention Facility. 6. County will submit a statement of Town of Marana prisoner charges on a monthly basis. This statement shall provide information in alphabetical order as follows: name of prisoner, booking date and hour, release date and hour, indication of booking day billing or subsequent day billing, billing period, daily rates, total billing days, and the total bill. The Town shall be allowed access to necessary computer systems in a timely manner to verify the billing. Any individual prisoner charges contested shall be made known to the County within 30 days after receipt of the monthly billing. If the Town notifies the County of a dispute within the 30 days of receipt of the monthly billing, the Town may withhold payment on those specific prisoners for whom billing is disputed until the dispute has been resolved. No dispute will be accepted if not made within the 30 days after the receipt on the monthly billing. If not contested in writing by the County, the dispute will be considered resolved in favor of the Town. Disputes about the billing statement shall be jointly reviewed by both parties and satisfactorily resolved within 45 days of the monthly billing. All charges shall be paid within sixty days of receipt of the monthly billing, excluding contested charges. Contested charges shall be paid 10 days of resolution of the dispute. Charges remaining unresolved after the 60 -day period may be arbitrated by a mutually acceptable third party. Town agrees to pay interest on outstanding charges beginning on the 10 day after resolution of the billing at a rate of 10% per annum until paid. Town agrees that a check is sent to County in payment of previously disputed charge, Town will attach an invoice detailing what specific charges are being paid. Town agrees that when funds are withheld due to a disputed charge, the specific charge being disputed, and the amount of payment being withheld, will be specified on an invoice attached to the payment check for the period in which the charge disputed was included. Town agrees to attach to each check submitted to County an invoice indicating the dates for which that check is to be applied. 7. Transportation of prisoners to Town of Marana Court or other locations, only as ordered by the Town of Marana Court, shall be the responsibility of the Town of Marana. The County shall be responsible for transportation of prisoners for medical care after the prisoner has been in jail custody for ninety minutes or more. 8. In regard to booking and related services and procedures, upon submission of the completed booking document to the Jail Intake Support Specialist County will immediately accept into jail custody all Town arrestees that present no obvious health issues that make the prisoner medically unacceptable for booking. The Town agrees that such conditional acceptance will shorten the time officers spend in the booking process and benefit the Town. Within the initial ninety minutes, County medical personnel will make a determination as to the prisoner's medical condition. Town agrees that if the prisoner presents a serious, emergent medical problem requiring Page 3 of 6 hospital examination or medical rejection for booking within 90 minutes of the time of booking, Town will send an officer to the jail to transport the prisoner for such medical examination or care as may be medically required as soon as possible. If a prisoner is taken from the jail for medical evaluation and returns to be incarcerated, the Town of Marana will not be charged twice for the first day billing rate of $ 86.43. By accepting the prisoner for the initial 90 minute evaluation period County does not in any way accept responsibility for the cost of medical care to be provided to that prisoner should it be determined by County that the prisoner requires hospitalization or that prisoner is medically unacceptable for booking. County will provide such booking and related services as prescribed by operations plans jointly approved by the Town of Marana Police and the Sheriff of Pima County. 9. This agreement shall cover the time period from July 1, 2004 through and including June 30, 2005. County agrees to provide Town with anticipated changes to the per diem rates for the ensuing year by December 1, 2004. The per diem rates for fiscal year 2005/2006 shall be subject to adjustment after negotiations are conducted by both parties. 10. Neither party shall be obliged to the other party for any costs incurred pursuant to this Agreement, except as herein provided. 11. Nothing in this Agreement shall be construed as either limiting or extending the statutory jurisdiction of either of the signing parties hereto. 12. Each party agrees to indemnify, defend and save harmless the other, their appointed boards and commissions, officials, employees and insurance carriers, individually and collectively from all losses, claims, suits, demands, expenses, subrogation, attorney's fees or actions of any kind resulting from all personal injury including bodily injury and death, and property damage occasioned during the term of this Agreement for acts or omissions of such party. Each party represents that it shall maintain for the duration of this Agreement, policies of public liability insurance covering all of their operations undertaken in implementation of this Agreement, providing bodily injury limits of not less than Five Hundred Thousand Dollars ($500,000) for any one person, of not less than One Million Dollars ($1,000,000) for any one occurrence, and property damage liability to a limit of not less than One Hundred Thousand Dollars ($100,000). The parties may fulfill the obligations of this Article by programs of self - insurance equivalent in coverage. 13. The parties agree to be bound by arbitration, as provided in Arizona Revised Statutes, § 12 -1501 et. seq., to resolve disputes arising out of this Agreement where the sole relief sought is monetary damage of $20,000 or less, exclusive of interest and costs. 14. Notwithstanding any other provision in this Agreement, this Agreement may be terminated with thirty days notice, if for any reason the Pima County Board of Supervisors does not appropriate sufficient monies for the purpose of maintaining this Page 4 of 6 Agreement. In the event of such cancellation, County shall have no further obligation to the Town other than for services already provided. 15. Either party may, at any time and without cause, cancel this Agreement by providing ninety (90) days written notice of intent to cancel. 16. This Agreement is subject to the provisions of ARS § 38 -511. 17. Each party to this Intergovernmental Agreement shall comply with all federal, state, and local laws, rules, regulations, standards, and Executive Orders, without limitation to those designated within this Agreement. The laws and regulations of the State of Arizona shall govern the rights of the parties, the performance of this Agreement, and any disputes hereunder. Any action relating to this Agreement shall be brought in a court of the State of Arizona in Pima County. Any charges in the governing laws, rules, and regulations during the terms of this Agreement shall apply, but do not require an amendment. 18. TOWN and COUNTY will not discriminate against any TOWN or COUNTY employee, client or any other individual in any way involved with the TOWN or COUNTY, because of race, age, creed, color, religion, sex, disability or national origin in the course of carrying out duties pursuant to this Intergovernmental Agreement. TOWN and COUNTY agree to comply with the provisions of Arizona Executive Order 99 -4, which are incorporated into this agreement by reference as if set forth in full. 19. Each party shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101 -336, 42 U.S.C. 12101- 12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. Page 5 of 6 20. This document, including Exhibit A, constitutes the entire Intergovernmental Agreement between the parties and shall not be modified, amended, altered or changed except through a written amendment signed by the parties. SIGNED AND ATTESTED THIS DAY OF , 2004. ATTEST. TOWN OF MARANA, a municipal corporation Town of Marana Clerk Mayor ATTEST: PIMA COUNTY, a body politic Clerk, Board of Supervisors Chair, Board of Supervisors Date Date APPROVED AS TO FORM AND APPROVED AS TO FORM AND LEGAL AUTHORITY: LEGAL AUTHORITY: Town of Marana Attorney Deputy ty Attorney Legal authority: ARS § 11 -201, ARS § 11 -951 through 954, ARS § 11 -251 0 Page 6 of 6 Calculation of Per Diem Rates EXHIBIT A There shall be two billing rates applicable to the prisoners incarcerated on behalf of the Town of Marana. A separate rate shall apply to the first day of incarceration to recapture booking and intake costs. Another separate rate shall be applied to the second and all following days of incarceration. Annually, each per diem rate shall be mutually agreed upon before July 1. A. The per diem rate applicable to the first day shall recover the booking and intake costs associated with each prisoner, whether the prisoner is booked and released or incarcerated. The first day rate shall be calculated based on the budgeted expenditures of the Booking and Intake organizational unit and its associated indirect costs divided by the actual number of bookings of Town prisoners as shown in schedule 1. The first day rate shall be calculated separately and the costs will be excluded from the basis for the rate charged for the second day of incarceration and all days following the second day. The Sheriff's cost centers included in the base calculation for the first day rate are: Food Service Supply Unit Corrections Property * Corrections Booking/Records • Janitorial/Facilities Management * Central Service Cost Allocation * Depreciation The indirect costs will be allocated according to the percentage relationship that the amount of Full Time Equivalent (FTE) staffing of Booking/Intake is to the amount of FTE staffing of Support Operations, Operations, Corrections and Booking/Intake combined. An example of the calculation follows: FTE's % Support Operations 225 19.30% Operations 409 35.08% Corrections 483 41.42% Booking/Intake 49 4.20% Total 1,166 100.00% Page 1 of 3 s In this case, the indirect cost allocation rate would be 4.20% calculated by dividing the FTE staffing of the Booking /Intake unit by the combined FTE staffing: 49/1,166 B. The second and all following days of incarceration shall be billed at a rate to cover budgeted expenditures for Correction Bureau costs, Adjustments, Support Operations costs, Other Costs and Indirect costs. The organizational units to be included in the second and following days rate for Correction Bureau costs are: • Corrections Staff • Food Services Unit • Classification Unit • Supply Unit • Corrections Property • Janitorial/Facilities Maintenance • Medical Unit • Mental Health Unit • Work Furlough • Commissary • Main Jail Operations • Corrections Basic Training • Judicial Security • After the Corrections Bureau budgeted expenditures have been calculated certain adjustments to total expenditures will be applied as offsets or reductions. The offsets will be made for the budgeted revenues and expenditures of the following organizational units: Judicial Security, Work Furlough Release Revenues and Commissary Revenues. The offsets of these units will be reductions to total Correction Bureau costs. Any other offsets will be mutually agreed upon when they become an element of the annual budget process. Support operations costs are an indirect element of the Sheriff's budgeted expenditures to be included in the per diem rate. The organizational units to be included in the Sheriff's internal indirect rate calculation are: • Department Staff • Administration Bureau Staff • Behavioral Science • Finance • Personnel • Training • Data Services • Communications Page 2 of 3 The Sheriff's internal indirect cost allocation rate shall be the percentage that the • amount of FTE Corrections Bureau staffing is to the combined amount of FTE staffing of Support Operations, Operations, and Corrections. An Example of the calculation follows: Bureau FTE's % Support Operations 225 19.30% Operations 409 35.08% Corrections 532 45.62% Total 1,166 100.00% The indirect cost allocation rate is 45.62 %; it is the result of 532/1;166. Other costs to be included in the second day and following days rate will include the allocation of internal central service costs of Pima County as shown in the most current Central Services Cost Allocation Plan. If the plan is out of date by more than one fiscal year, the most current CPI index will be applied for each prior fiscal year to internal allocations of expenditures to reach an amount adjusted for inflation in the current fiscal year. These indirect costs will be allocated to the Corrections Bureau costs in the same percentage as shown under paragraph A, above. Other costs will also include one hundred percent of the annual Property, Plant and Equipment expense of $1,707,262. Page 3 of 3 TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.A.2. TO: Mayor and Council FROM: Jack Holden, Building Official SUBJECT: Ordinance No. 2004.05: Solar Energy System Credit Increase AGENDA Ordinance No. 2004.05: Solar Energy System Credit Increase An ordinance of the TITLE: Town of Marana, Arizona, amending Marana Town Code, Chapter 7, Article 7 3, relating to building permit fees, to increase the building permit fee credit for new homes with certain solar energy systems to $1,000. DISCUSSION: To encourage the use of solar energy systems, the Town currently provides a $500 building permit fee credit for new homes with certain solar energy systems, and waives building permit fees to install those systems in existing homes. Although solar energy systems provide significant energy savings over the life of a home, their original cost is substantially higher than normal gas or electric systems. The small number of home builders and homeowners who have taken advantage of the credit since its December 18, 2001 adoption by Ordinance No. 2001.23 is an indication that the existing $500 credit is not enough of an incentive to promote the use of solar energy systems. This proposed ordinance increases the solar energy credit to $1,000, significantly reducing the amount of time it takes for a homeowner to recoup the higher original solar energy system.cost with energy savings. - As adopted by Ordinance No. 2001.23, the current program (which also includes certain whole- house gray water systems, which are not affected by this ordinance) automatically terminates on December 18, 2004 or when the cumulative credits total $300,000, whichever occurs first. This ordinance does not modify those termination provisions. The proposed ordinance also clarifies some of the wording of Ordinance No. 2001.23 and re- numbers some of the affected Town Code sections. Solar Energy Credit Bluesheet -1- 2/11/2004 1:13 PM FJC i - RECOMMENDATION: Staff recommends that Mayor and Council adopt Ordinance No. 2004.05, increasing the building permit fee credit to $1,000 for new homes with certain solar energy systems. SUGGESTED MOTION: I move to approve Ordinance No. 2004.05 • Solar Energy Credit Bluesheet -2- 2/11/2004 1:13 PM FJC MARANA ORDINANCE NO. 2004.05 AN ORDINANCE OF THE TOWN OF MARANA, ARIZONA, AMENDING MARANA TOWN CODE, CHAPTER 7, ARTICLE 7 -3, RELATING TO BUILDING PERMIT FEES, TO INCREASE THE BUILDING PERMIT FEE CREDIT FOR NEW HOMES WITH CERTAIN SOLAR ENERGY SYSTEMS TO $1,000, AND DECLARING AN EMERGENCY. WHEREAS, that document herein referred to as " MARANA TOWN CODE, CHAPTER 7 BUILDING ", has been made a public record by the adoption of Resolution No. 95 -71, which outlined regulations for building and construction of the town of Marana; and WHEREAS, Town of Marana Ordinance No. 2001.23 was adopted on December 18, 2001 in an effort to encourage solar utilization and water conservation measures, and WHEREAS, amendments to the fee schedule to allow increased permit fee reductions for the installation of solar energy utilization technologies for single family residences will encourage additional installation of conservation measures, and are in the best interest of the Town of Marana. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana, Arizona, as follows: Section 1. Section 7 -3 -2 "Other Inspection Fees" is hereby amended by increasing the "New construction single family residence permit fee" for "solar utilization measures" from $500.00 to $1,000.00. Section 2. Except as modified by this Ordinance, the provisions of Town of Marana Ordinance No. 2001.23 shall remain in full force and effect, including the sunset date of December 18, 2004. Section 3. The various town officers and employees are authorized and directed to perform all acts necessary or desirable to give effect to this Ordinance and portion of the Town Code. 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 hereof. Section 5. It is necessary for the preservation of the peace, health, and safety of the Town of Marana that this ordinance become immediately effective; therefore, an emergency is Marana, Arizona Ordinance No. 2004.05 Page 1 of 2 2/12/2004 10:57 AM FJC 4' hereby declared to exist and this ordinance shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona this 17th day of February, 2004. Mayor BOBBY SUTTON JR. ATTEST: Jocelyn C. Bronson, Town Clerk w APPROVED AS TO FORM: Frank Cassidy, Town Attorney I I i k C Marana, Arizona Ordinance No. 2004.05 Page 2 of 2 2/12/2004 10:57 AM FJC TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.A.3 TO: Mayor and Council FROM: Jaret Barr, Assistant to the Town Manager SUBJECT: Discussion/Direction Approval of a reconstruction of the town owned building at the "Heritage Park to become a public building. AGENDA BLURB: Consideration and possible direction to staff to allocate some of the CIP funds dedicated to the Heritage Park to rehabilitate the town owned house on the property in order to properly comply with the town code and eventually be a leased public building on the park site. DISCUSSION: Staff has been working with Southern Arizona Home Builders Association (SAHBA) and other civic groups, including the Marana Arts Council (MAC) to formulate a strategic partnership to rehab the house on the heritage park property, include it in the long term heritage park plan, and find a public use in perpetuity for the building to be occupied at market lease rate. Staff would like to allocate CIP money dedicated to the park and its buildings specifically, in part and at this time, to this building. RECOMMENDATION: Staff recommends authorizing the allocation of Heritage Park CIP funds to rehabilitate the town owned house on the property. SUGGESTED MOTION: I move to approve. Gladden Farms Land DA Bluesheet for 2/17/04 Agenda -1- 2/10/2004 2:28 PM FJC TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA 'DATE: February 17, 2004 AGENDA ITEM: IX.B.1 TO: Mayor and Council FROM: Michael A. Reuwsaat, Town Manager SUBJECT: Swearing in by oath the appointed members of the Board of Adjustment. AGENDA TITLE: The Town Clerk, on behalf of the Mayor and Council, will swear in by oath the appointed members of the Board of Adjustments as passed in Resolution No. 2004 -13. DISCUSSION: The Board of Adjustment serves as an appeals board. It is a quasi - judicial body authorized to grant zoning variances, allow land uses which are permitted by exception, and hear appeals on administrative staff decisions. RECOMMENDATION: Staff recommends approval of the administration of the oath. SUGGESTED MOTION: I move to approve. -1- TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.B.2 TO: Mayor and Council FROM: Kevin Kish, Interim Planning Director SUBJECT: Resolution No. 2004 -16: Twin Peaks Highland Revised Preliminary Plat AGENDA PUBLIC BEARING: Resolution No. 2004 -16: Twin Peaks Hig-Wand Revised Preliminary TITLE: Plat: A resolution of the Mayor and Council of the Town of Marana, Arizona, approving the preliminary plat for PRV- 03133, Twin Peaks Highland, submitted by D. R. Horton for a 119 -lot single family detached home subdivision on 29.78 acres located within the Pima Farms North Specific Plan , located west of Silverbell Road, between Twin Peaks Road P and Coachline Boulevard, in a portion of Section 20, Township 12 South, Range 12 East. DISCUSSION: The Marana Planning Commission heard this project on January 28, 2004. There was no opposition to the project and the Commission voted unanimously to recommend approval to the Town Council. This application is a Revised Preliminary Plat for a 119 -unit single - family subdivision on 29.78 acres within the Pima Farms North Subdivision, located west of Silverbell Road between Twin Peaks Road and Coachline Boulevard. The first Preliminary Plat was approved by Town Council on February 4, 2003. After that approval, El Paso Natural Gas reconsidered the alignment of the streets as they affected the El Paso Natural Gas easement through the property and requested revisions. In response to their concerns, the applicant worked with El Paso Natural Gas on their own initiative to redesign the streets to lessen the impact of the subdivision on their easement. This new street layout allows for the streets to cross the easement at 90- degree angles, but leaves most of the easement in open space. Because of the changes to the streets, the developer has been able to add five more lots. The access for the site is off of Silverbell Road. There are three interior loop roads that provide access to the lots. The street cross - section for interior streets in the project has a 42' right -of -way. There will be a temporary off -site turn- around at the end of Moonfire Way where it will join with a street from Pima Farms Village, to the south. Moonfire Way will be a through street from Silverbell connecting to the subdivision to the south, and through to Pima Farms Road when the subdivision to the south is built. An agreement between D.R. Horton and Diamond Ventures allows the turn- around to be built on Diamond Ventures land. The existing land use designation is MDR Medium Density Residential per the Bluesheet for Marana Resolution No. 2004 -16 -1- 2/11/2004 1:27 PM FJC a Pima Farms North Specific Plan. The developer is proposing a density of 4.0 RAC which corresponds to a typical lot size of 6,000 square feet. New public streets total 0.82 miles. Maximum building height will be 24' or two - stories; however, the developer has voluntarily limited the location of the two -story homes. There will be no two -story homes along Silverbell Road or on corner lots within the development. In addition to the standard conditions, the developer has voluntarily created special conditions that will assure the higher standards the developer wants to achieve. Setbacks will be staggered from 20' to 23'. No more than two consecutive two -story homes will be allowed adjacent to one another throughout the subdivision. No two models with the same elevations shall be permitted adjacent to one another throughout the subdivision. No two homes of the same color scheme shall be permitted adjacent to one another throughout the subdivision. A note shall be placed on the final plat that states "All building permit site plans shall give the setback information for the lot to be permitted, and include the model number and elevation, color scheme and single or two -story for the home being permitted and the adjacent lots. No more than fifty percent of the homes within this subdivision shall be two - story." The rear 25' of lots 5 — 20 is designated as conservation area. No building, grading, or improvements will be allowed in this area, with the exception of view fencing. A recreation plan has been submitted for this project, and has been accepted by Marana Parks and Recreation. The Plat is in the Marana South Transportation Benefit Area, so impact fees will be collected at the time of building permitting. RECOMMENDATION: Planning Staff recommends adoption of Resolution No. 2004 -16, approving PRV -03133 Twin Peaks Highland Revised Preliminary Plat with the following conditions: 1. The trail public easement in the washes shall be increased to ten feet in width and shown on the final plat. 2. No approval, permit, or authorization of the Town of Marana authorizes the applicant or landowner to violate any applicable federal or state laws or regulations, or relieves the applicant or landowner from responsibility to ensure compliance with all applicable federal and state laws and regulations, including the Endangered Species Act and the Clean Water Act. The applicant is advised to retain appropriate experts and/or to consult with appropriate federal and state agencies to determine any actions necessary to assure compliance with applicable laws and regulations. 3. Development shall conform to Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council on January 20, 2004. SUGGESTED MOTION: I move to approve Resolution No. 2004 -16 with the specified conditions. Bluesheet for Marana Resolution No. 2004 -16 -2- 2/11/2004 1:27 PM FJC MARANA RESOLUTION NO. 2004-16 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, APPROVING THE PRELIMINARY PLAT FOR PRV- 03133, TWIN PEAKS HIGHLAND, SUBMITTED BY D. R. HORTON FOR A 119 -LOT SINGLE FAMILY DETACHED HOME SUBDIVISION ON 29.78 ACRES LOCATED WITHIN THE PIMA FARMS NORTH SPECIFIC PLAN, LOCATED WEST OF SILVERBELL ROAD, BETWEEN TWIN PEAKS ROAD AND COACHLINE BOULEVARD, IN A PORTION OF SECTION 20, TOWNSHIP 12 SOUTH, RANGE 12 EAST. WHEREAS, the Revised Preliminary Plat was heard by the Marana Planning and Zoning Commission January 28, 2004, and was forwarded with a recommendation of approval; and WHEREAS, D.R. Horton is the owner of 29.78 acres within the Pima Farms North Specific Plan, generally located in a portion of Section 28, Township 12 South, Range 12 East, and has applied for approval of a Preliminary Plat for 119 lots on 29.78 acres; and WHEREAS, the Marana Town Council has heard from the representative(s) of the owners, staff, and members of the public at the regular Town Council meeting, February 17, 2004 and has determined that the Preliminary Plat for PRV -03133 Twin Peaks Highland should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona that the Preliminary Plat, submitted by D. R. Horton for a 119 -lot single family detached home subdivision on 29.78 acres located west of Silverbell Road, between Twin Peaks Road and Coachline Boulevard is hereby approved subject to the following conditions: 1. The trail public easement in the washes shall be increased to ten feet in width and shown on the final plat. 2. No approval, permit, or authorization of the Town of Marana authorizes the applicant or landowner to violate any applicable federal or state laws or regulations, or relieves the applicant or landowner from responsibility to ensure compliance with all applicable federal and state laws and regulations, including the Endangered Species Act and the Clean Water Act. The applicant is advised to retain appropriate experts and/or to consult with appropriate federal and state agencies to determine any actions necessary to assure compliance with applicable laws and regulations. 3. Development shall conform ' to Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council on January 20, 2004. Marana Resolution No. 2004 -16 Page 1 of 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17th day of February, 2004. Mayor BOBBY SUTTON JR. ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Marana Resolution No. 2004 -16 Page 2 of 2 'N OV- 2 '10:12 =R0µ -D R HORTON' ES TOV\ OF -Z 696 V.'. L 5 • PL:�'tIG d ZONING APPLICATION I. - l - iTE OF APPLICATION (Check One) 5=- pl?z Z:Unz: T N56vc Plan: GE's: R4L DATA REQUIRED pa,-=] Gcn=-,zl Plrx. Dzsipabor, (To be a Z rc!s Q. cu=cn zoni-g rTD bc Y�A f) i4a ki iz —lo:aTion f- ck c; Do V v b W VZO cj Propen, • Owner sztt: Z-, i Zip Cci- Pa= Co Z7Z= PMOn • � �Piicznt C ;l LkC Zp;= Lt Le - son L4 6 a4s E. 'P4-- Lb Ljj e- I a7 Ca: I PhD= Num= $S �. t �- � 3�-1- � to �-5 � 3 � t �b 3 3 3 ; B i:2 t N P- 3. AUTHORIZATION OF PROPERTY OW?k7ER A of iht prcpe:7 or that I na De-en autho-g-rd in %NTiminsby the o to Me fn: ztmh:&:io= (If not O of ^ecord armch vmrtex authorization from the owner.) Darr OR orr7=1 USE ONLY 0 Receirmd � 4 Received By � � i CRW -No. I?RjObd \ / / /\ -Nri/NT,fd SHWit! Cx � gzm� : &ens. � .2 2 � - y -- --------- J ts , F), - 6 2225. Spec - : % . J!716 -2 sq. 7 522 �� \0! 2 2 & DN'l 7 1. D—i §as P.M. Mimit;--1 of Shif Total E9 / :) S T. S 2 of Stij C ove 72 ar) s a I n c I: LITS EEL - JED CIll-"SES s E FILLE � ' . - LJIPI A T*1-1- M--- -r'7r!n-.. 1-1— MARANA 0 Twin Peaks =/ I \ Highland TOWN OF MARANA ~' �I rte. V J I � \\ `, I : I!! I I I i l i l! I I I I �✓�J �' ! I 1 � ��� \ �� \f � `�` jl _ / ��'� ��; ! I I III �:� �� j��! ^ ^ �� "" L•�, Twin Peaks '' t ----- Highland � � .I / N II I ! 1 4 _r? 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I j A C m �cn o0 O ° � z Z) R m� N ° ao 'S A A C r O 11 G � � N X V Ict QD IZD Z cx'n a I n MIN Z z I Iv y L GRADING UMIT 00 C C z I c�zi ' O O of r-p Z ® I III In o 111 � ul t o I I i a I a t 1 m t z t o t A 23' .� GRADING UMIT + I o o a W O LPL � y 25' C -L CHANNEL t vo a.m 1 0 0 o (n 1 a FO m m 1°an r�4 a a a I I m o Q v Z 1 __ —_ I t n `_ a � o 'f1 o d V a TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.B.3 TO: Mayor and Council FROM: Kevin Kish, Interim Planning Director SUBJECT: Resolution No. 2004 -17: Continental Reserve Block 15 Preliminary Plat AGENDA PUBLIC HEARING: Resolution No. 2004 -17: Continental Reserve Block 15 Preliminary TITLE: Plat A resolution of the Mayor and Council of the Town of Marana., Arizona, approving a preliminary plat on 19.80 acres, located in Block 15 of the Continental Reserve Block Plat, within the Pima Farms Specific Plan area, consisting of a 66 -lot single family residential subdivision. This property lies within Sections 28 and 33, Township 12 South, Range 12 East, on the south side of Continental Loop Road and west of Pima Reserve Drive. DISCUSSION: This project was heard by the Marana Planning Commission on January 28, 2004. The Commission voted unanimously to recommend approval to the Town Council. The project property is located within the Continental Reserve Master Planned Area, south of Continental Reserve Loop Road, west of Pima Reserve Drive on Block 15 of the Continental Reserve Final Block Plat. The land use designation within the Pima Farms Specific Plan is MDR (Medium Density Residential) which allows for 3 to 6 residences per acre. This project provides lot sizes from a minimum of 7,621 square feet to a maximum of 17,070 square feet. Minimum setbacks are 20' front, 5' side and 10' rear. Common Areas provided on the plat are "D ", used for drainage, and "E ", used for landscaping. This subdivision is affected by the Development, Sensitive Overlay requirements as stated in the Pima Farms Specific Plan. Buffers at the south property line are 50' per the requirements of the Development Sensitive Overlay. The 50' buffer is not intended to be undisturbed as it supports a utility easement, a driveway easement, and a trail easement, but is a building setback. The maximum building height shall not exceed one story or 24' in the Development Sensitive Overlay area, and lots adjacent to Continental Reserve Loop are limited to single story. The densities are required to range between 2 and 3.5 residences per acre per requirements of the Pima Farms Specific Plan. This subdivision is 3.3 RAC. Other restrictions apply to the Development Sensitive Overlay. The Plat is in the Marana South Transportation Benefit Area, so impact fees will be collected at the time of building permitting. Staff has reviewed the plat for conformance with the Land Development Code, the General Plan, the Pima Farms Specific Plan, the Continental Reserve Block Plat, and the Continental Reserve Production Homebuilder Bluesheet for Marana Resolution No. 2004 -17 -1- 2/11/2004 2:06 PM FJC fi r . Design Guidelines. Staff finds the proposal meets all applicable requirements. The Master Developer of Continental Reserve has provided a regional park and an extensive pedestrian and equestrian trail system. Individual blocks are not required to provide on -site recreation. A developed trail entrance and connection will be required. This project proposes one entrance from Continental Reserve Loop Road. Due to the narrow shape of the parcel and the sensitive nature of the surrounding property it was not possible to design a second entrance. Circulation within the project is achieved by the use of two cul -de -sacs and a loop road. The street section utilizes a 44' right -of -way with travel lanes of 14' wide. New public streets total 0.7 miles. All streets are public in this project. RECOMMENDATION: The Planning Commission and Planning Staff recommend approval of PRV -03112 Continental Reserve Block 15 Preliminary Plat subject to Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council on January 20, 2004 SUGGESTED MOTION: I move to approve Resolution No. 2004 -17 pp 1. r Bluesheet for Marana Resolution No. 2004 -17 -2- 2/11/2004 2:06 PM FJC MARANA RESOLUTION NO. 2004-17 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, APPROVING A PRELIMINARY PLAT ON 19.80 ACRES, LOCATED IN BLOCK 15 OF THE CONTINENTAL RESERVE BLOCK PLAT, WITHIN THE PIMA FARMS SPECIFIC PLAN AREA, CONSISTING OF A 66 -LOT SINGLE FAMILY RESIDENTIAL SUBDIVISION. THIS PROPERTY LIES WITHIN SECTIONS 28 AND 33, TOWNSHIP 12 SOUTH, RANGE 12 EAST, ON THE SOUTH SIDE OF CONTINENTAL LOOP ROAD AND WEST OF PIMA RESERVE DRIVE. WHEREAS, on May 30` 1989 the Town of Marana adopted Ordinance 89.20 approving the Pima Farms Specific Plan; and WHEREAS, U.S. Home is the owner of approximately 19.80 acres within the Continental Reserve boundary generally located in Sections 28 and 33, Township 12 South, Range 12 East, and has applied to the Town of Marana for approval of a Preliminary Plat for 66 single family detached home lots on 19.80 acres, including lots 1 through 66 and common areas «D„ and «E „; and WHEREAS, the Marana Planning Commission unanimously voted to recommend approval of Continental Reserve Block 15 Preliminary Plat to the Town Council at its regular meeting of January 28, 2004; and WHEREAS, the Marana Town Council, at its regular meeting of February 17, 2004 has determined that the Final Plat for Continental Reserve Block 15, should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the T own o f Marana, Arizona, that the Preliminary Plat for Continental Reserve Block 15, submitted by U.S. Home for a 66 -lot subdivision located within the boundary of Continental Reserve, on the south side of Continental Loop Road and west of Pima Reserve Drive, in Sections 28 and 33, Township 12 South, Range 12 East is hereby approved subject to conformance with Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council on January 20, 2004. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17` day of February, 2004. Mayor BOBBY SUTTON, JR. ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Marano Resolution No. 2004 -17 TORN OF MARANA MARANA Planning and Zoning Department 3696 W. Orange Grove Road + Tucson. AZ 85741 (520) 297 -2920 Fax: (520) 297 -3930 PLANNING & ZONING APPLICATION 1. TYPE OF APPLICATION (Check One) Preliminary Plat ❑ General Plan Amendment ❑ Variance ❑ Final Plat ❑ Specific Plan Amendment ❑ Conditional Use Permit ❑ Development Plan ❑ Rezone ❑ Other ❑ Landscape Plan ❑ Significant Land Use Change ❑ Native Plant Permit 2. GENERAL DATA RE UIRED Assessor's Parcel _ �j General Plan Designation Number(s) 2� ` - l •' 7- " 0 -� (To be confirmed by staff) Gross Area (Acre /Sq. Ft.) (p • � A-G . 5 84 1-2 .5 �{ Current Zoning MV P_ 5 1 7 EC(F1C t 1 q (To be confirmed by staff) PCB N Development/ a P T J N e fJT,* L R �v I Proposed Zoning Project Name S I't's Project Location PoRTI6W5 o F `Fr_.I ?s 33 riz 5 (LI 2 E >A a-n- WA i Pi wta Co. i h � Description of Project b w cK 1 o f K S 3 µ p & Y & 3c, Property Owner 6 N( A L MOTS L i n i P f Nuc_ Street Address City State 7 Z D`E 6� fWeS Sri u.L Sf � ZdI SIC +tAdt-)0 VA Zip Code Phone Number Fax Number E -Mail Address Z U ' 404 Z-$7- 140 9rr,aC_ e_0 V" Contact Person Phone Number f�f Nk 704.2 - 3 1ab Applicant � � ir..•' � �:� 6 { K t l.<<< �' �' Street Address _ 3 . City ! U c State Zip Code Phone Number Fax Number E -Mail Address -'�� i t � 'Z c t E - c `� � U �- c; t �;, - L � � Cr.° ���� ;jncC►i-n ,CDr Contact Person ., Phone Number Agent/Representative j kP t i } Street Address City state Zip Code Phone Number Fax Number E -Mail Address Contact Person Marana Business License No. ::.3._ AUTHORIZATION OF PROPERTY OWNER= I, the undersigned, certify that all of the facts set forth in this application are true to the best of my knowledge and that I am either the owner of the property or that I have been authorized in writing by the owner to file this application. (If not owner of record, attach written authorization from the owner.) ✓ Print Name of A licant/Agent / i Si ature Date FOR OFFICE USE ONLY Case No. p -03 1 14 Date Received Receipt No. 1 4910 ^ � - CRW No. i RJ03()q- 00 Received By e„l�{Qa(�Q,( Fee Amount o,,voz AL, Continent B lock INS NA .■��.�■ a III i��i�� .�1iQ� ������� • I� 1 ♦111111111 / /!� � ♦ � ��� �, ■��1��� ♦�� _ ■ _ O� ♦� e 0 /e � ` 1/ te e• , • . ��1�� iiiii _ ,�'� � : 'i�� ♦����� . LEE milli Z-4 UNNI 2 FBI mill A request for approval of a 66-lot single-family subdivision including lots 1 - 66 and common areas "D" IIIY 'j �♦�il�♦ • / /e11111111111111' ��j� ♦ ♦� � ' � � ����� - , � ►111 �,,,, � -ice � ��� ,��,♦ � .• �•��' ��i����� ���♦ t • •- and ( landscape ). i I C: _o w_'obs 03 03049 ref bose.dw 12/3/2003 4:02:42 PM UMST f D I . u —1 1 IS _ 0. go c SP N I z v C 1 cai p �11 1 1 N I a m W 10 v I V" + Cn _ w _ N '' m I N ak �a °" °a i � w r QQQ N 01 1 CA �. 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R.O.W. rn g t� > � ® ®e IQi� D� ���7Cm m r L(fn D # c N x r , r 'C L STREET STREET to U i i ' C 2— 5' y .0 1�mrpp� P. gis rn �3J C 111.0 ca ca 21n ay 1 y 2 il a _ mom y � i O� A p L M R 74 z E s �i c m '9 7/ X61 Y STREET Y -4 N f S + $p STREET -t g7REET Y 8 : N v � TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.B.4 TO: Mayor and Council FROM: Kevin Kish, Interim Planning Director SUBJECT: Resolution No. 2004 -20: Continental Reserve Block 16B Preliminary Plat AGENDA PUBLIC HEARING: Resolution No. 2004 -20: Continental Reserve Block 16B TITLE: Preliminary Plat A resolution of the Mayor and Council of the Town of Marana, Arizona, approving the Continental Reserve Block 16B preliminary plat, consisting of an 86 -lot detached home residential subdivision on approximately 29.5 acres within the Pima Farms Specific Plan. The property is generally located at the southwestern corner of Pima Reserve Drive and Wade Road within Sections 28 and 33, Township 12 South, Range 12 East. DISCUSSION: The Continental Reserve Final Block Plat was approved by the Town Council February 15, 2000 by Resolution Number 2000 -19. The approved plan allowed for a density of 1,875 dwelling units distributed over 17 blocks. The Town Council approved a lot -split of Block 16 of said Final Block Plat on July 15, 2003 by Resolution 2003 -83. The applicant is requesting preliminary plat approval of an 86 -lot single family detached home subdivision on approximately 29.5 acres within Block 16B. The Pima Farms Specific Plan land use designation for Block 16B is "MDR" (Medium Density Residential), which allows up to 6 RAC and stipulates a minimum average lot size of 4,000 sq. ft. The proposed plat is for 2.9 RAC and provides an average lot size of 9,221 sq. ft., with the smallest lot being 7,215 sq. ft. The Continental Reserve Master Homeowner's Association has approved the proposed plat and will be responsible for maintenance of private easements, common areas, and drainage features. Common area, including open space, drainage and utilities, is provided in the amount of 6.1 acres. The Town will provide water service. Access to the proposed subdivision is provided by Pima Reserve Drive via two access points (intersections). The streets are public and their design has been accepted by the Town Engineer. The Specific Plan requirement that homes built adjacent to Wade Road be one -story has been inserted on the Plat as General Note #34. In addition, approximately 11 acres of the platted boundary is subject to the Development Sensitive Overlay Zone Bluesheet for Mamm Resolution No. 2004 -20 -1- 2/11/2004 2:09 PM FJC (General Note #37). The Overlay, as promulgated by the Specific Plan, restricts development to one -story and allows a maximum density of 3.5 RAC. The Overlay requirements and the standards and restrictions established by the Block Plat Natural Resource Easement have been reviewed by staff and the Master Homeowner's Association's Design Review Committee. This project conforms to all applicable standards. The Plat is located in the Marana South Transportation Benefit Area, so impact fees will be collected at the time of building permitting. Staff has reviewed the plat for conformance with the Land Development Code, the General Plan, the Pima Farms Specific Plan, the Continental Reserve Block Plat, and the Continental Reserve Production Homebuilder Design Guidelines. Staff finds that the proposal meets all applicable requirements. Recommended Condition: The Continental Reserve Block 16B Preliminary Plat shall be subject to Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council on January 20, 2004. RECOMMENDATION: The Planning Commission and Staff recommend that the Town Council approve Resolution No. 2004 -20 as presented, subject to the recommended condition. SUGGESTED MOTION: I move to approve Resolution No. 2004 -20. Bluesheet for Marana Resolution No. 2004 -20 -2- 2/11/2004 2:09 PM FJC MARANA RESOLUTION NO. 2004-20 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, APPROVING THE CONTINENTAL RESERVE BLOCK 16B PRELIMINARY PLAT, CONSISTING OF AN 86 -LOT DETACHED HOME RESIDENTIAL SUBDIVISION ON APPROXIMATELY 29.5 ACRES WITHIN THE PIMA FARMS SPECIFIC PLAN. THE PROPERTY IS GENERALLY LOCATED AT THE SOUTHWESTERN CORNER OF PIMA RESERVE DRIVE AND WADE ROAD WITHIN SECTIONS 28 AND 33, TOWNSHIP 12 SOUTH, RANGE 12 EAST. WHEREAS, on May 30, 1989 the Town Council adopted Ordinance 89.21, establishing the Pima Farms Specific Plan; and WHEREAS, on February 15, 2000 the Town Council approved Resolution 2000 -19 establishing the Continental Reserve Block Plat within the Pima Farms Specific Plan; and WHEREAS, on July 15, 2003 the Town Council approved Resolution 2003 -83 approving the lot split of Block 16 of the Continental Reserve Block Plat; and WHEREAS, Canoa Homes, the owner of Continental Reserve Block 16B, within the Continental Reserve Block Plat, generally located in Sections 28 and 33, Township 12 South, Range 12 East, has applied for approval of a Preliminary Plat for 86 single family detached homes on 29.5 acres, comprising Block 16B and including lots 1 through 86, and common area "A "• and WHEREAS, the Planning Commission, at their regular meeting on January 28, 2004, voted unanimously to recommend approval of the Continental Reserve Block 16B Preliminary Plat to the Town Council; and WHEREAS, the Town Council, at their regular meeting on February 17, 2004 has determined that the Continental Reserve Block 16B Preliminary Plat should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the T own o f Marana, Arizona, that the Continental Reserve Block 16B Preliminary Plat, an 86 -lot residential subdivision within the Continental Reserve Block Plat and generally located at the southwestern corner of Pima Reserve Drive and Wade Road within Sections 28 and 33, Township 12 South, Range 12 East, is hereby approved subject to conformance with Marana Ordinance 2004.04 relating to Residential Design Requirements, as approved by the Town Council January 20, 2004. Page 1 of 2 Marana Resolution No. 2004 -20 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17 day of February 2004. Mayor BOBBY SUTTON JR. ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Page 2 of 2 Marsna R€soludon No. 2004 -20 t a a a a `: gg, z�; n I I R m g n c � - � ^ � Fq to � ; 'ay ^ W I, ACC rr`If._N ,TA RESERVE' / �►( C.A. q BLO 16 v I RK. 53'M&P,r P0, 35 A A �, w OD lo, �1 •j� ° Q N I VI A V N ��•\ o N- i v J C OD $ ao IN r 10 C.A. 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I� Na � N / � •\ ! .,� 'Lit OD W A N co y oD t N V .x / ` 11 I 1 ,J ( •'� W I 4 CO 11 N, w -D R5 AG co A- 125 AC .. + y QA- 6 5 AG 17 ch _ n \ v � 1 i \ i.: ,o ot mRIA „ V . z J €e a c 41 a� g m A � � olp 111 1MIR Q) g g o rn FQ Z t O n N ^ cn 5 Sr.NSv^Q w O � a m ti y a k � O TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: February 17, 2004 AGENDA ITEM: IX.B.5 TO: Mayor and Council FROM: Mike Reuwsaat, Town Manager SUBJECT: Resolution No. 2004 -23: Gladden Farms Community Facilities District AGENDA PUBLIC HEARING: Resolution No. 2004 -23: Gladden Farms Community TITLE: Facilities District Consideration and possible adoption of a Resolution of the Mayor and Common Council of the Town of Marana, Arizona, a municipal corporation of Arizona, ordering and declaring formation of Gladden Farms Community Facilities District; approving and authorizing the execution and delivery of a District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District) and declaring an emergency. DISCUSSION: This action item is related to the January 21, 2004 Mayor and Council study session on community facilities districts (CFDs) and the proposed Gladden Farms CFD. This item should be considered in conjunction with agenda item IX.B.6 on this agenda relating to proposed Resolution No. 2004 -24 authorizing the execution of a land development agreement with Gladden Forest, L.L.C. (the "Developer ") entitled "First Amendment to Gladden Farms Development Agreement." This resolution authorizes the execution of a District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District) (the "CFD Agreement ") concerning matters related to the creation of the Gladden Farms CFD. It also takes all steps necessary to order and declare formation of the Gladden Farms CFD. The Mayor and Council of the Town of Marana will serve as the Board of Directors of the Gladden Farms CFD (the "CFD Board "), the Town Manager will serve as the CFD Manager, the Town Engineer will act as the CFD Engineer, the Town Attorney will act as the CFD Attorney, and other Town officials will act in their same capacity for the CFD. One or more of the CFD positions may eventually be contracted to outside personnel; for example, it is likely that an outside engineering firm will be substituted as CFD Engineer, to accept and inspect public infrastructure acquired or constructed by the CFD . By a resolution of its own, the CFD Board will schedule a May 18, 2004 election to authorize the sale of a total of $69,000,000 in bonds over the life of this CFD. The CFD Agreement allows control by the Developer until the first $23,000,000 in bonds are issued or twenty years, whichever occurs first. It is anticipated that this first $23,000,000 in bonds, if the CFD Board decides to sell them, will be used Gladden Fanns CFD Bluesheet for 2/17/04 Agenda -1- 2/12/2004 9:49 AM FJC to reimburse the Developer for public infrastructure constructed by it in and for the benefit ` of Gladden Farms, including certain infrastructure addressed in Exhibit B to the CFD Agreement and in the First Amendment to Gladden Farms Development Agreement, which must be provided by the Developer and its parent company. The remaining bond authorization will be available to fund later public infrastructure projects to the extent they benefit Gladden Farms. These documents anticipate a maximum secondary tax rate of $2.80 per $100 of assessed valuation, which includes $30 per $100 for operation and maintenance expenses. The actual rate could go higher, if for some reason the total assessed valuation within the CFD falls or some other unforeseen event makes it necessary to raise the tax rate to cover the bond obligations. The Developer's financial obligations under these documents or as a result of forming this CFD include (a) payment of a $75,000 non - refundable up -front charge, (b) an annual obligation to pay up to $100,000 in CFD operation and maintenance costs, to the extent such costs are not covered by the $30 per $100 operation and maintenance tax, (c) a letter of credit in the face amount of $300,000 to cover future CFD operation and maintenance costs, if the Developer defaults in its annual operation and maintenance cost reimbursement obligation, (d) deposit $25,000 with the Town to cover initial costs of the CFD prior to the levy of the $30 per $100 operation and maintenance tax, (e) the obligation to provide standby contributions to cover any difference in the amount necessary to pay annual financial obligations with respect to all outstanding bonds and the amount generated by a tax rate of no more than $2.50 per $100 of assessed valuation, and (f) the obligation, at the CFD Board's discretion, to deposit twice the maximum annual debt service for any fiscal year (in addition to the reserve fund in the amount of up to one year's debt service paid out of bond proceeds, at the discretion of the CFD Board). Mr. Michael Cafiso and Mr. Mark Reader will be in attendance to assist staff in answering any questions Council may have. Messrs. Cafiso and Reader are the Town's bond counsel and financial advisor, respectively. ATTACHMENTS: 1. Map (reduced copy of the Gladden Farms Block Plat cover sheet) 2. Resolution No. 2004 -23. 3. Petition for Adoption of a Resolution Ordering and Declaring Formation of Gladden Farms Community Facilities District (Exhibit A to Resolution No. 2004 -23) 4. District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District) 5. General Plan for the Proposed Gladden Farms Community Facilities District RECOMMENDATION: Staff recommends approval of Resolution No. 2004 -23, ordering and declaring formation of Gladden Farms, Community Facilities District; approving and authorizing the execution and delivery of a District Development, Financin Gladden Farms CFD Bluesheet for 2/17/04 Agenda -2- 2/12/2004 9:49 AM FJC r� Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District) and declaring an emergency. SUGGESTED MOTION: I move to approve Resolution No. 2004 -23. Gladden Farms CFD Bluesheet for 2/17/04 Agenda -3- 2/12/2004 9:49 AM FJC r ro.0' W-A\Y-A \Gq..l\ it a � a � r bra ��X�b G F ts� W W '' g S �a YdPb � y � a m m 1 �I� 6 o �C( # N � Q o bo Y �YY t y: 5° i h. 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Findings a. On a date prior to the date of the adoption hereof, there was presented to us, the governing body of the Town of * Summary only; to be removed upon adoption. Marana, Arizona, an incorporated municipality of the State of Arizona (hereinafter called the "Municipality "), a Petition for Adoption of a Resolution Declaring Formation of Gladden Farms Community Facilities District, dated as of even date herewith (hereinafter referred to as the "Petition "), signed by the entities which, on the date hereof, are the owners of all real property as shown on the assessment roll for State and county taxes for Pima County, Arizona, or, if such persons shown on such assessment roll are no longer the owners of land in Gladden Farms Community Facilities District are the entities which are the successor owners which have become known and have been verified by recorded deed or similar evidence of transfer of ownership to be the owners of such real property (hereinafter referred to as, collec- tively, the "Petitioner ") described in the Petition by metes and bounds to be in the community facilities district, the formation of which is prayed for by the Petitioner in the Petition, pursuant to Title 48, Chapter 4, Article 6, Arizona Revised Statutes, as amended (hereinafter referred to as the "Act "). b. The Petitioner has requested the following: I. The name of the community facilities dis- trict of which formation is prayed pursuant to the Petition to be "Gladden Farms Community Facilities District" (hereinafter called the "District "), 2 II. The District to be formed and exist pursuant to the terms and provisions of the Act as such terms and provisions are modified, waived or restricted pursuant to agreements to be ent- ered into by and among the Petitioner, the Munic- ipality and the District, III. The District to contain an area of approxi- mately 700 acres of land, more or less, wholly within the corporate boundaries of the Municipal- ity and to be composed of the land included in the parcels described by metes and bounds as provided in Exhibit A ' to the Petition, which is made a part of the Petition for all purposes and is all the land to be included within the boundaries of the District (hereinafter referred to as the "Property "), IV. The District to be a special purpose dis- trict for purposes of Article IX, Section 19, Constitution of Arizona, a tax levying public improvement district for the purposes of Article XIII, Section 7, Constitution of Arizona, and a municipal corporation for all purposes of Title 3 35, Chapter 3, Articles 3, 3. 1, 3. 2, 4 and 5, Arizona Revised Statutes, as amended; except as otherwise provided in the Act, to be considered a municipal corporation and political subdivision of the State of Arizona separate and apart from the Municipality; and to be formed for, and to have, all the purposes of a "district" as such term is defined, and as provided, in the Act, V. The formation of the District to result in the levy of ad valorem taxes to pay costs of improvements constructed by the District and for their operation and maintenance, VI. The Clerk of the Municipality to accept the filing of a "General Plan for Community Facili- ties District" for the District setting out a general description of the improvements for which the District is proposed to be formed and the general areas to be improved (hereinafter referred to as the "General Plan "), and VII. The Municipality to determine that public convenience and necessity require the adoption of this Resolution. 4 C. The Petitioner further attested and declared that on the date hereof, as shown on the assessment roll for State and county taxes in Pima County, Arizona, the Property is owned by the Petitioner and shall be benefited from the improvements for which the District is proposed to be formed; that there are no residents on the Property and there shall be no residents within fifty (50) days preceding the first anticipated election of the District; that the District shall be formed and exist pursuant to the terms and provi- sions of the Act as such terms and provisions are modified, waived or restricted pursuant to agreements to be entered into by and among the Petitioner, the Municipality and the District; that public convenience and necessity require the adoption of this Resolution; and that the Municipality shall in no way be liable for the payment of any of the costs of the public infrastructure described in the General Plan, nor liable for any liability, debt or obligation of the District. d. After showing the preceding, the Petitioner respectfully prayed that the Petition be properly filed as provided by law and that, as the Petition is signed by all of the owners of the Property and there are not now, and shall not be within fifty (50) days preceding the first anticipated election of the District, residents on the Property, any requirements of posting, publication, mailing, notice, hearing and election otherwise required by the Act in connection with the adoption of this Resolution are waived, the Municipality, on receipt of the Petition, declare the District formed without being required to comply with such provisions for posting, publication, mailing, notice, hearing or election. 5 e. Pursuant to the Act and Section 9- 500.05, Arizona Revised Statutes, as amended, the Municipality, the District, Gladden Forest, LLC (hereinafter called "Gladden Forest ") and Forest City Enterprises, Inc. (hereinafter called "Forest City ") are entering into a "development agreement" to specify, among other things, conditions, terms, restrictions and requirements for "public infrastructure" (as such term is defined in the Act) and the financing of public infrastructure and subsequent reimbursements or repayments over time. f. With regard to the real property included within the boundaries of the District, the Municipality, Gladden Forest and Forest City determined to specify some of such matters in such an agreement, particularly matters relating to the acquisition or con- struction of certain public infrastructure by the District, the acceptance thereof by the Municipality and the reimbursement or repay- ment of Gladden Forest with respect thereto, all pursuant to the Act. g. Pursuant to the Act and Title 11, Chapter 7, Article 3, Arizona Revised Statutes, as amended, the District, and the Municipality may enter into an "intergovernmental agreement" with one another for joint or cooperative action for services and to jointly exercise any powers common to them and for the purposes of the plan - ping, design, inspection, ownership, control, maintenance, operation or repair of public infrastructure. h. Pursuant to the Act, the District may also enter into an agreement with Gladden Forest and Forest City with respect to the advance of moneys for public infrastructure purposes and the repayment of such advances and to obtain credit enhancement for, and 6 0 process disbursement and investment of proceeds of, general obligation bonds of the District to be hereafter issued. i. There has been presented to us in connection with the purposes described in paragraphs l.e. through h. a District Devel- opment, Financing Participation and Intergovernmental Agreement (Glad- den Farms Community Facilities District) , to be dated as of February 1, 2004 (hereinafter referred to as the "Development Agreement "), by and among the Municipality, the District, Gladden Forest and Forest City. 2. Matters Noticed by the Municipality a. The Petitioner seeks formation of the District to exercise the powers and functions set forth in the Act as such powers and functions are modified, waived or restricted pursuant to agree- ments to be entered into by and among the Petitioner, the Municipality and the District. b. The General Plan has been filed with the Clerk of the Municipality. C. The Petition and all necessary supporting mate- rials have been filed with us, and the showings in the Petition are each noticed by us and are hereby incorporated at this place as if set forth hereat in whole. d. The purposes for which organization of the Dis- trict is sought are as described in the Petition and are purposes for which a district created pursuant to the Act may be lawfully formed. e. The public convenience and necessity require us to adopt this Resolution. 7 3. Granting of Petition; Formation of District The Petition attached hereto as Exhibit "A" and made a part hereof for all purposes is hereby granted, and the District is hereby formed as a district pursuant to the terms and provisions of, and with the powers and authority established by, the Act, subject to the restrictions and modifications set forth in the Petition, with jurisdiction over the Property and that, as the Petition is signed by the owner of the 'Prop- erty and there are not now, and shall not be within fifty (50) days preceding the first anticipated election of the District, residents on the Property, requirements of posting, publication, mailing, notices, hearing and election otherwise required by the Act with respect to formation of the District are hereby found to be unnecessary. 4. District Board and Officers The District shall be governed by a "District Board" comprised of the members of the govern- ing body of the Municipality, ex officio. The Mayor of the Municipal- ity shall be the "Chairperson of the District Board "; the Vice Mayor of the Municipality shall be the "Vice Chairperson of the District Board "; the Town Clerk of the Municipality shall- be the "District Clerk "; the Town Treasurer of the Municipality shall be the "District Treasurer "; the Town Manager of the Municipality shall be the "Dis- trict Manager "; the Finance Director of the Municipality shall be the "District Chief Financial Officer" and the Town Attorney of the Munic- ipality shall be the "District Counsel." 5. District Boundaries and Map The District boundaries are as described in metes and bounds in Exhibit "A" to the Petition. 8 A map showing the District boundaries is hereby ordered to be drawn and provided by the District Manager. 6. Dissemination of this Resolution The Petitioner shall cause a copy of this Resolution to be delivered to the County Assessor and the Board of Supervisors of Pima County, Arizona, and to the Department of Revenue of the State of Arizona. 7. Authorization and Approval of Development Agreement The Development Agreement is hereby approved in substantially the form submitted herewith, with such changes, additions, deletions, inser- tions and omissions, if any, as the Mayor of the Municipality, with the advice of the Town Manager of the Municipality and the Town Attor- ney of the Municipality, shall authorize, the execution and delivery of the Development Agreement to be conclusive evidence of the propri- ety of such document and the authority of the persons or persons executing the same. The Mayor of the Municipality, with the advice of the Town Manager of the Municipality and the Town Attorney of the Municipality, p y, is hereby authorized and directed to execute, and the Town Clerk of the Municipality to attest and deliver, the Development Agreement on behalf of the Municipality. 8. No Liability of or for the Municipality Neither the Municipality nor the State of Arizona or any political subdivision of either (other than the District) shall be directly, indirectly or morally liable or obligated for the costs of the public infrastructure contemplated by the General Plan and the Development Agreement nor for the payment or repayment of any indebtedness, liability, cost, expense or obligation of the District, and neither the credit nor the taxing 9 power of the Municipality, the State of Arizona or any political sub- division of either (other than the District) shall be pledged there- for. 9. Effect of Resolution a. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any remaining provisions of this Resolution. b. All resolutions or parts thereof inconsistent herewith are hereby waived to the extent only of such inconsistency. 10. Emergency Clause The immediate operation of the pro- visions of this Resolution is necessary to the orderly development of property within the Municipality and the resulting preservation of the public peace, health and safety, an EMERGENCY is hereby declared to exist. This Resolution shall be in full force and effect from and after its passage, adoption and approval by us, as required by law, and is hereby exempted from the referendum provision of the constitu- tion and laws of the State of Arizona pursuant to Section 19- 142(B), Arizona Revised Statutes, as amended, and any applicable provision of the Code or any ordinances of the Municipality. 10 PASSED by the Mayor and Common Council of the Town of Marana, Arizona, this 17th day of February, 2004. ...... ............................... Mayor, Town of Marana, Arizona ATTEST: ........................ Town Clerk, Town of Marana, Arizona APPROVED AS TO FORM: . ............................... Town Attorney, Town of Marana, Arizona REVIEWED BY: . ............................... Town Manager, Town of Marana, Arizona ATTACHMENTS: EXHIBIT A -- Conformed Copy of Petition for Adoption of this Resolution 1432827.1 - 2/12/04 11 EXHIBIT "A" CONFORMED COPY OF PETITION FOR ADOPTION OF THIS RESOLUTION A -1 PETITION FOR ADOPTION OF A RESOLUTION ORDERING AND DECLARING FORMATION OF GLADDEN FARMS COMMUNITY FACILITIES DISTRICT STATE OF ARIZONA ) COUNTY OF PIMA ) ss. TOWN OF MARANA ) THE UNDERSIGNED OWNERS OF ALL OF THE LAND (hereinafter re- f erred to as, collectively, "Petitioner ") in the parcels hereinafter described by metes and bounds, acting pursuant to the provisions of Title 48, Chapter 4, Article 6, Arizona Revised Statutes, as amended (hereinafter referred to as the "Act "), respectfully petitions The Honorable Town Council of the Town of Marana, Arizona (hereinafter re- ferred to as the "Municipality "), to adopt a resolution (hereinafter r referred to as the "Resolution ") declaring and ordering formation of a community facilities district (hereinafter referred to as the "Dis- trict") and would respectfully request the following with respect thereto: I. The name of the District to be "Gladden Farms Community Fa- cilities District," II. The District to be formed and exist pursuant to the terms and provisions of the Act as such terms and provisions are modified, waived or restricted pursuant to agreements to be entered into by and among Petitioner, the Municipality and the District, III. The District to contain an area of approximately 700 acres of land, more or less, wholly within the corporate boundaries of the Municipality and to be composed of the land included in the parcels described by metes and bounds as provided in Exhibit " A " hereto, which is made a part hereof for all purposes, IV. The District to be a special purpose district for purposes of Article IX, Section 19, Constitution of Arizona, a tax levying pub- lic improvement district for the purposes of Article XIII, Section 7, Constitution of Arizona, and a municipal corporation for all purposes of Title 35, Chapter 3, Articles 3, 3.1, 3.2, 4 and 5, Arizona Revised Statutes, as amended; except as otherwise provided in the Act, to be considered a municipal corporation and political subdivision of the State of Arizona, separate and apart from the Municipality; and to be formed for, and to have, all the purposes of a "district" as such term is defined, and as provided, in the Act, V. The formation of the District to result in the levy of ad valorem taxes to pay costs of improvements constructed by the District and for their operation and maintenance, VI. Before the Resolution is adopted, the Clerk of the Munici- pality to accept the filing of a "general plan" (as such term is defined in the Act and hereinafter referred to as the "General Plan ") 2 for the District setting out a general description of the improvements for which the District is proposed to be formed and the general areas to be improved, and VII. The Municipality to determine that public convenience and necessity require the adoption of the Resolution; WHEREFORE, Petitioner attests and declares that on the date hereof, as shown on the assessment roll for State and county taxes in Pima County, Arizona, all of the land to be in the District is owned by Petitioner or, if a person listed on such assessment roll is no longer the owner of land in the District, that the name of the succes- sor owner has become known and has been verified by recorded deed or other similar evidence of transfer of ownership to be Petitioner; that there currently are no residents on the land to be in the District and there shall be no residents within fifty (50) days preceding the first anticipated election for the District; that the land to be included in the District shall be benefited from the improvements for which the District is proposed to be formed; that the District shall be formed and exist pursuant to the terms and provisions of the Act as such terms and provisions are modified, waived or restricted pursuant to agreements to be entered into by and among Petitioner, the Municipal- ity and the District; that public convenience and necessity require the adoption of the Resolution; and that the Municipality shall in no way be liable for the payment of any of the costs of the public infra- structure described in the General Plan, nor liable for any liability, debt or obligation of the District; 3 STATE OF ARIZONA ) ss. COUNTY OF PIMA ) The foregoing instrument was acknowledged before me on this day of 2004, by Dean Wingert, Senior Vice President of Gladden Forest, LLC, an Arizona limited liability company, on be- half of the limited liability company. ....... ............................... Notary Public My commission expires: STATE OF .......... ) ss. COUNTY OF .......... ) The foregoing instrument was acknowledged before me on this .... day of 2004, by an authorized representative of Forest City Enterprises, Inc., an Ohio corporation, on behalf of the corporation. Notary Public My commission expires: ...................... 7 STATE OF ........... ) .......... ss. ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me on this .......... day of 2004, by ................ .................... an authorized representative of Pulte Home Corpo- ration, a Michigan corporation. IN WITNESS WHEREOF, I hereunto set my hand and official seal. .... ............................... Notary Public My commission expires: ...................... STATE OF ........... ) ) ss COUNTY OF .......... ) The foregoing instrument was acknowledged before me on this .......... day of 2004, by ........... .........I an authorized representative of U.S. Home Corporation, a Delaware corporation. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ............................... Notary Public My commission expires: 8 STATE OF ........... } ) ss. .......... COUNTY OF ) The foregoing instrument was acknowledged before me on this .......... day of 2004, by ........... ................... an authorized representative of Residential Fund- ing Corporation, a Delaware corporation. IN WITNESS WHEREOF, I hereunto set my hand and official seal. .... ............................... Notary Public My commission expires: ...................... ATTACHMENT: EXHIBIT A - Legal Description Of Property To Be Included In The District 1432821.2- 2/10/04 9 I EXHIBIT A LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT ALL OF GLADDEN FARMS BLOCKS 1 THRU 25 AND A THRU F, EXCEPT BLOCK D, AS SHOWN ON THE PLAT RECORDED IN BOOK 55 OF MAPS AND PLATS AT PAGE 60, RECORDS OF THE PIMA COUNTY RECORDER, PIMA COUNTY, ARIZONA, BEING POR- TIONS OF SECTIONS 33 AND 34 OF TOWNSHIP 11 SOUTH, RANGE 11 EAST, GILA AND SALT RIVER MERIDIAN, PIMA COUNTY, ARIZONA, FURTHER DESCRIBED AS FOLLOWS: COMMENCING AT A %" IRON PIN (NO TAG) AT THE NORTHEAST CORNER OF SAID SECTION 34; THENCE SOUTH 0 0 30'09" EAST 322.00 FEET UPON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34 TO THE POINT OF BEGINNING; THENCE CONTINUE SOUTH 0 0 30'09" EAST 2322.59 FEET UPON SAID EAST LINE AND UPON THE EAST LINE OF SAID GLADDEN FARMS TO A %" ALUMINUM CAPPED PIN, LS 7599, AT THE EAST QUARTER CORNER OF SAID SECTION 34; THENCE SOUTH 0 0 30'03" EAST 2644.34 FEET UPON THE EAST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 34 AND UPON SAID EAST LINE OF GLAD- DEN FARMS TO A %" IRON PIN, NO TAG, AT THE SOUTHEAST CORNER OF SAID SECTION 34; THENCE SOUTH 89 0 22'30" WEST 187.66 FEET UPON THE SOUTH LINE OF SAID SOUTHEAST QUARTER AND UPON THE SOUTH LINE OF SAID GLADDEN FARMS TO THE SOUTHEAST CORNER OF CMID WELL SITE NO. 18 AS SHOWN ON SAID PLAT; THENCE NORTH 0 0 37'30" WEST 100.00 FEET UPON THE EAST LINE OF SAID WELL SITE TO THE NORTHEAST CORNER THEREOF; THENCE SOUTH 89 0 22'30" WEST 75.00 FEET UPON THE NORTH LINE OF SAID WELL SITE TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 0 0 37'30" EAST 100.00 FEET UPON THE WEST LINE OF SAID WELL SITE TO THE SOUTHWEST CORNER THEREOF BEING ON SAID SOUTH LINE OF THE SOUTHEAST QUARTER; THENCE SOUTH 89 0 22'30" WEST 3885.00 FEET CONTINUING UPON THE SOUTH LINE OF SAID SOUTHEAST QUARTER AND UPON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 34, BEING THE SOUTH LINE OF SAID GLADDEN FARMS, TO THE SOUTHWEST CORNER OF BLOCK B OF GLADDEN FARMS AS SHOWN ON SAID PLAT, BEING ON THE NORTHEASTERLY RIGHT OF WAY LINE OF SANDARIO ROAD AND A POINT ON THE ARC OF A NON - TANGENT CURVE CONCAVE SOUTHWESTERLY, THE RADIUS POINT OF SAID CURVE BEARS SOUTH 68 0 20 1 49" WEST, FOR REFERENCE, AN ALUMINUM CAPPED PIN, RLS 7599, AT THE SOUTH- WEST CORNER OF SAID SECTION 34 BEARS SOUTH 89 0 22'30" WEST AT A DISTANCE OF 1124.04 FEET; THENCE THE FOLLOWING THREE COURSES UPON SAID RIGHT OF WAY LINE AND UPON SAID SOUTHWEST LINE OF BLOCK B: 1) NORTHWESTERLY UPON SAID ARC, TO THE LEFT, HAVING A RADIUS OF 746.20 FEET AND A CENTRAL ANGLE OF 48 °17 ", FOR AN ARC DISTANCE OF 628.96 FEET TO A TANGENT LINE; A -1 2) NORTH 69 0 56 1 49" WEST 593.45 FEET TO A POINT ON THE ARC OF A TANGENT CURVE CONCAVE NORTHEASTERLY; 3) NORTHWESTERLY UPON SAID ARC, TO THE RIGHT, HAVING A RADIUS OF 160.99 FEET AND A CENTRAL ANGLE OF 69 0 26'33 ", FOR AN ARC DISTANCE OF 195.12 FEET TO A THE TANGENT EAST RIGHT OF 'WAY LINE OF SAID SANDARIO ROAD BEING THE WEST LINE OF SAID GLADDEN FARMS; THENCE NORTH 0 0 30 1 16" WEST 1862.79 FEET UPON SAID EAST RIGHT OF WAY LINE AND UPON SAID WEST LINE TO AN ANGLE POINT; THENCE SOUTH 89 0 29'44" WEST 30.04 FEET UPON SAID WEST LINE TO A " IRON PIN, NO TAG, AT THE WEST QUARTER CORNER OF SAID SECTION 34, BEING ALSO THE EAST QUARTER CORNER OF SAID SECTION 33; THENCE SOUTH 89 0 17'57" WEST 1321.01 FEET UPON SAID WEST LINE AND UPON THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33 TO AN ANGLE POINT; THENCE NORTH 0 0 34'17" WEST 2610.03 FEET UPON SAID WEST LINE TO THE NORTHWEST CORNER OF SAID GLADDEN FARMS, BEING A POINT ON THE SOUTH RIGHT OF WAY LINE OF MOORE ROAD PRIOR TO THE DEDICATION OF ADDITIONAL RIGHT OF WAY AS SHOWN ON SAID PLAT, BEING A LINE 30.00 FEET SOUTHERLY OF AND PARALLEL WITH THE NORTH LINE OF SAID NORTHEAST QUARTER OF SEC- TION 33; THENCE NORTH 89 0 20'24" EAST 1320.79 FEET UPON THE, NORTH LINE OF SAID GLADDEN FARMS, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON SAID PARALLEL LINE TO AN ANGLE POINT; THENCE NORTH 89 EAST 2634.98 FEET UPON SAID NORTH LINE, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON A LINE PARALLEL WITH AND 30.00 FEET SOUTHERLY OF THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 34 TO AN ANGLE POINT; THENCE NORTH 89 0 25'03" EAST 2283.27 FEET UPON SAID NORTH LINE, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON A LINE PARALLEL WITH AND 30.00 FEET SOUTHERLY OF THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34; THENCE SOUTH 0 0 30'13" EAST 292.00 FEET; THENCE NORTH 89 0 25'03" EAST 357.00 FEET TO THE POINT OF BEGIN- NING. A -2 [AREA RESERVED FOR RECORDING INFORMATION] DISTRICT DEVELOPMENT, FINANCING PARTICIPATION AND INTERGOVERNMENTAL AGREEMENT (GLADDEN FARMS COMMUNITY FACILITIES DISTRICT) ARTICLE I DEFINED TERMS; MISCELLANEOUS MATTERS RELATING TO USE THEREOF ............. ..............................5 ARTICLE II CONSTRUCTION OF PROJECTS BY THE DISTRICT; ACQUISITION OF PLANS AND SPECIFICATIONS ..............14 ARTICLE III CONSTRUCTION OF ACQUISITION PROJECTS BY THE OWNER; CERTAIN MATTERS RELATED TO PLANS AND SPECIFICATIONS .......... .............................16 ARTICLE IV ACQUISITION OF ACQUISITION PROJECTS FROM THE OWNER ............... .............................21 ARTICLE V FINANCING OF COSTS OF PROJECTS AND PLANS AND SPECIFICATIONS .......... .............................23 ARTICLE VI MATTERS RELATING TO THE BONDS AND OTHER OBLIGATIONS OF THE DISTRICT ..........................27 ARTICLE VII ACCEPTANCE BY THE MUNICIPALITY .......................34 ARTICLE VIII INDEMNIFICATION ......... .............................35 ARTICLE IX PAYMENT OF CERTAIN EXPENSES AND COSTS ................39 ARTICLE X MISCELLANEOUS ........... .............................42 SIGNATURES ......... ..........................52 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY ......................A -1 EXHIBIT B DESCRIPTION OF CERTAIN INFRASTRUCTURE ..............B -1 EXHIBIT C FORM OF CERTIFICATE OF ENGINEERS FOR CONVEY - ANCE OF SEGMENT OF ACQUISITION PROJECT .......... C -1 EXHIBIT D FORM OF CONVEYANCE OF SEGMENT OF ACQUISITION PROJECT . ............................D -1 EXHIBIT E FORM OF DISCLOSURE STATEMENT .......................E -1 i THIS DISTRICT DEVELOPMENT, FINANCING PARTICIPATION AND INTERGOVERNMENTAL AGREEMENT (GLADDEN FARMS COMMUNITY FACILITIES DIS- TRICT), dated as of February 1, 2004 (hereinafter referred to as this "Agreement "), by and among the Town of Marana, Arizona, a municipality duly incorporated and validly existing pursuant to the laws of the State of Arizona (hereinafter referred to as the "Municipality "); Gladden Farms Community Facilities District, a community facilities district formed by the Municipality, and duly organized and validly existing, pursuant to the laws of the State of Arizona (hereinafter referred to as the `'District "); Gladden Forest, LLC, a limited liabil- ity company duly organized and validly existing pursuant to the laws of the State of Arizona and having an interest in certain property in the District (hereinafter referred to as "Gladden Forest ") and Forest City Enterprises, Inc., a corporation duly incorporated and validly existing pursuant to the laws of the State of Ohio (hereinafter referred to as "Forest City Enterprises "); W I T N E S S E T H: WHEREAS, pursuant to Title 48, Chapter 4, Article 6, Arizona Revised Statutes, as amended (hereinafter referred to as the "Act ") , and Section 9- 500.05, Arizona Revised Statutes, as amended, the Municipality, the District, Gladden Forest and Forest City Enter- prises entered into this Agreement as a "development agreement" to specify, among other things, conditions, terms, restrictions and requirements for "public infrastructure" (as such term is defined in the Act) and the financing of public infrastructure and subsequent reimbursements or repayments over time; and i 2 WHEREAS, with regard to the real property described in Exhibit "A" hereto (hereinafter referred to as the "Pro pert wh ich p y ) ich makes up the real property included within the District, the Munici- pality, the District, Gladden Forest and Forest City Enterprises determined to specify .some of such matters in this Agreement, particu- larly matters relating to the construction or acquisition of certain public infrastructure by the District, the acceptance thereof by the Municipality and the reimbursement or repayment of Gladden Forest or Forest City Enterprises with respect thereto, all pursuant to the Act, such public infrastructure being. necessary for Gladden Forest to develop the Property prior to the time at which the District can itself pay for the construction or acquisition thereof; and WHEREAS, this Agreement as a "development agreement" is consistent with the "general plan" of the Municipality, as defined in Section 9 -461, Arizona Revised Statutes, as amended, applicable to the Property on the date this Agreement is executed; and WHEREAS, pursuant to an election to hereinafter be held in and for the District, questions authorizing the district board of the District (i) to issue certain general obligation bonds of the Dis- trict, including to provide moneys for certain, "public infrastructure purposes" (as such term is defined in the Act) described in the Gene- ral Plan of the District heretofore approved by the Municipality and the District and in this Agreement (hereinafter referred to as the "Bonds ") including the levy, assessment and collection of a debt serv- ice tax against all real and personal property in the District, unlim- ited as to rate or amount therefor, and (ii) to levy, assess and 3 collect an operation and maintenance tax in an amount up to $0.30 per $100.00 of assessed valuation for all real and personal property in the District (hereinafter referred to as the "O /M Tax ") to provide for amounts which become attributable to the operation and maintenance expenses of the District in the future are expected to be approved pursuant to the Act; and WHEREAS, the use of the proceeds of the sale of the Bonds and amounts which will be collected with respect to the O/M Tax in the future is a subject of this Agreement; and WHEREAS, pursuant to the Act, the District entered into this Agreement with Gladden Forest with respect to the advance of moneys for public infrastructure purposes by Gladden Forest or Forest City Enterprises and the repayment of such advances and to obtain credit enhancement for, and process disbursement and investment of proceeds of, the Bonds; and WHEREAS, pursuant to the Act and Title 11, Chapter 7, Article 3, Arizona Revised Statutes, as amended, the District and the Municipality entered into the specified sections of this Agreement as an "intergovernmental agreement" with one another for joint or cooper- ative action for services and to jointly exercise any powers common to them and for the purposes of the planning, design, inspection, owner- ship, control, maintenance, operation or repair of "public infrastruc- ture," including particularly to provide for the acceptance by the Municipality of certain public infrastructure constructed or acquired by the District; 4 NOW, THEREFORE, in the joint and mutual exercise of their powers, in consideration of the above remises and of th • P e mutual cove- nants herein contained and for other valuable consideration, and sub- ject to the conditions set forth herein, the parties hereto agree that: ARTICLE I DEFINED TERMS; MISCELLANEOUS MATTERS RELATING TO USE THEREOF Section 1.1 (a) • For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the terms defined in this Section have the meanings assigned to them in this Section and include, as appropriate, the plural as well as the singular: "Acquisition Infrastructure" means that portion of the Infrastructure other than that which is the subject of a request of Gladden Forest and approval of the District Manager described in Section 2.1. "Acquisition Project" means each project which is a part of the Acquisition Infrastructure on a project -by- project basis. "Acquisition Project Construction Contract" means a construction contract for an Acquisition Project. "Act" means Title 48, Chapter 4, Article 6, Arizona Revised Statutes, as amended. "Agreement" means this District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms Community 5 I Facilities District) , dated as of February 1, 2004, by and among the Municipality, the District, Gladden Forest and Forest City Enter- prises, as amended from time to time. "Bonds" means the series of general obligation bonds of the District authorized to be sold and issued by the District as described in this Agreement. "Certificate of the Engineers" means a certificate of the Gladden Forest Engineer and the District Engineer in substantially the form of Exhibit "C" hereto. "Construction Contract" means a construction contract for a Project. "Conveyance" means a conveyance for a Segment in substan- tially the form of Exhibit "D" hereto. "Court" means Pima County Superior Court. "Cure Period" has the meaning provided thereto in Section 10.20(b). "Deposit Amount" means the dollar amount equal to twice the maximum annual debt service for any Fiscal Year (including the amount necessary for any mandatory redemption of related term Bonds) for a series of the Bonds. "Depository Agreement" means a Depository Agreement by and between the indenture trustee appointed with respect to a series of the Bonds, in its separate capacity as depository, and the District to be executed and delivered with respect to such series of the Bonds if a Payment Agreement with respect to such series of the Bonds has been executed and delivered. 6 "Disclosure Statement" means the disclosure statement sub- stantially in the form of Exhibit ' E hereto. "District" means Gladden Farms Community Facilities Dis- trict, a community facilities district formed by the Municipality, and t organized and existing, pursuant to the laws of the State. "District Board" means the district board of the District. "District Budget" means the budget of the District required for each Fiscal Year by the Act. "District Engineer" means the Engineer for the Munici- pality. "District Expenses" means the reasonable expenses and costs of the operation and administration of the District including the rea- sonable expenses and costs incurred by the Municipality in connection with the formation of the District; its operations; its relationship with the Municipality; its issuance of the Bonds or any similar mat- ters and reasonable fees and related costs and expenses of staff of the Municipality, financial advisors, engineers, appraisers, attorneys and other consultants and including any overhead incurred by the Municipality with respect thereto. "District Indemnified Party" means the Municipality and each legislator, director, trustee, member, officer, official or employee thereof or of the District. "Engineers" means, collectively, the Gladden Forest Engi- neer and the District Engineer; provided, however, that neither may be changed upon less than thirty (30) days written notice and, in the 7 case of the Gladden Forest Engineer, without compliance with the other 10 provisions hereof with respect to such change. "Fiscal Year" means the twelve (1 2) month period beginning on July 1 of any year and ending on June 30 of the following year. "Force Majeure" means any condition or event not reasonably within the control of a party obligated to perform hereunder, includ- ing, without limitation, "acts of God "; strikes, lock -outs, or other disturbances of employer/ employee relations; acts of public enemies; orders or restraints of any kind of the government of the United States or any state thereof or any of their departments, agencies, or officials, or of any civil or military authority; insurrection; civil disturbances; riots; epidemics; landslides; lightning; earthquakes; subsidence; fires; hurricanes; storms; droughts; floods; arrests; restraints of government and of people; explosion; and partial or entire failure of utilities. Failure to settle strikes, lock -outs and other disturbances of employer /employee relations or to settle legal or administrative proceedings by acceding to the demands of the oppos- ing party or parties, in either case when such course is in the judg- ment of the party hereto unfavorable to such party, shall not consti- tute failure to use its best efforts to remedy such a condition or event. "Forest City Enterprises" means Forest City Enterprises, Inc., a corporation incorporated and existing pursuant to the laws of the State of Ohio. 8 "Gladden Forest" means Gladden Forest, LLC, a limited lia- bility company organized and existing pursuant to the laws of the State of Arizona. "Gladden Forest Engineer" means any firm of professional engineers hired by Gladden Forest after approval thereof by the Dis- trict Manager to perform the services required therefrom for the pur- poses hereof. "Indemnified Party" means the Municipality and the District and each legislator, director, trustee, partner, member, officer, official, independent contractor or employee thereof and each person, if any, who controls the Municipality and /or the District within the meaning of the Securities Act. "Infrastructure" means, collectively, any public infra- structure (as such term is defined in the Act) necessary for develop- ment of the Property, including for all purposes the public infra- structure described in Exhibit "B" hereto. "Intergovernmental Agreement Act" means Title 11, Chapter 7, Article 3, Arizona Revised Statutes, as amended. "Initial Expenses" means, prior to receipt of collections of the first levy of the 0/M Tax, the reasonable expenses and costs of the operation and administration of the District including the reason- able expenses and costs incurred by the Municipality in connection with the formation of the District, its operations, its relationship with the Municipality, its issuance of the Bonds or any similar matters and reasonable fees and related costs and expenses of staff of the Municipality, financial advisors, engineers, appraisers, attorneys 9 and other consultants and including any overhead incurred by the Municipality with respect thereto. "Initiation Notice" has the meaning provided in Section 10.20(d). "Land Development Agreement" means the Development Agree- ment, by and among the Municipality, Fidelity National Title Agency, Inc., as trustee under Trust No. 30212, and Gladden Farms, LLC, recorded February 15, 2002, in Docket No. 11733, official records of Pima County, Arizona, as amended from time to time, which was assigned to Gladden Forest in October of 2002. "Letter of Credit" shall mean a standby letter of credit or substitute therefor under the terms provided herein in the face amount of $300,000 in, favor of the District issued by an institution, the deposits of which are federally insured and the uninsured, unsecured and unguaranteed obligations of which are rated "AA" or better by S &P, presentable for payment in Tucson or Phoenix, Arizona and drawable as provided herein, which includes a provision requiring sixty (60) days' notice to the District of any cancellation, terminations or non - renewal thereof and immediate notice to the District of a downgrading of the rating described hereinabove and, without limiting the foregoing, otherwise shall be acceptable to the District in the exercise of commercially reasonable standards. "Municipality" means the Town of Marana, Arizona, a munici- pality incorporated and existing pursuant to the laws of the State. "O /M Expenses" means the reasonable expenses and costs of the operation and maintenance of the Projects (including after accept- 10 ance by the Municipality pursuant to Section 7.1) and for accumulating a Replacement Reserve Amount with respect to the Projects including any overhead incurred by the Municipality with respect thereto. "O /M Tax" means an operation and maintenance tax in the amount up to $0.30 per $100.00 of assessed valuation for all real and personal property in the District. "Panel" has the meaning provided in Section 10.20(d). "Payment Agreement" means a Payment Agreement by and among the District and Gladden Forest to be executed and delivered with respect to a series of the Bonds unless determined by the District Board not to be necessary at the time of issuance of such series of the Bonds, such determination to be deemed to have been made by the District Board with respect to any such series of the Bonds that is issued without the simultaneous execution and delivery of a Payment Agreement. "Plans and Specifications" means the plans and specifica- tions for a Project which shall be prepared and reviewed in accordance with the requirements for plans and specifications for construction projects of the Municipality similar to the Project or the Acquisition Project, as applicable. "Process" has the meaning provided in Section 10.20(d). "Project" means each project which is a part of the Infra- structure on a project -by- project basis. "Property" means the real property described in Exhibit "A" to this Agreement. 11 "Replacement Reserve Amount" means an amount calculated using reasonable accounting practices based on the useful life of the various assets composing the Projects established by the Internal Revenue Code of 1986, as amended, to be used to replace such assets. "Report" means the study of the feasibility and benefits required by the Act for the applicable Project or Acquisition Project. "Securities Act" means the Securities Act of 1933, as amended. "Segment" means a completed, discrete portion of an Acqui- sition Project as determined by the District Engineer and the District Manager. "Segment Price" means an amount equal to the sum of the amounts paid by Gladden Forest for (1) design of the Segment (includ- ing the costs of the review of such design by the District Engineer) , (2) construction of the Segment pursuant to the Acquisition Project Construction Contract for such Segment (such amount to be equal to the contract amount plus any increases to such contract amount approved as described in Section 3.5 less any change orders decreasing the con- tract amount), (3) inspection and supervision of performance under such Acquisition Project Construction Contract and (4) other miscel- laneous costs for such Segment attributable to construction of the Segment approved by the Engineers as certified in the Certificate of the Engineers for that Segment. "S &P" shall mean Standard & Poor's Ratings Group, a Divi- sion of the McGraw Hill Companies, or any successor thereto. 12 "Standby Contribution Agreement" means a Standby Contribu- tion Agreement by and among the indenture trustee appointed with respect to a series of the Bonds, the District and Gladden Forest to be executed and delivered with respect to such series of the Bonds unless determined by the District Board not to be necessary at the time of issuance of such series of the Bonds, such determination to be deemed to have been made by the District Board with respect to any such series of the Bonds that is thereafter issued without the simul- taneous execution and delivery of a Standby Contribution Agreement. "State" means the State of Arizona. "Total Debt Service" means, collectively, amounts for debt service for the next succeeding tax year with respect to the Bonds and for payment of the amounts described in Section 9.1 for such year. i "Town Council" means the governing body of the Munici- pality. (b) All references in this Agreement to designated "Exhibits," "Articles," "Sections" and other subdivisions are to the designated Exhibits, Articles, Sections and other subdivisions of this Agreement as originally executed. (c) The words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Exhibit, Article, Section or other subdivision. 13 ARTICLE II CONSTRUCTION OF PROJECTS BY THE DISTRICT; ACQUISITION OF PLANS AND SPECIFICATIONS Section 2.1 Upon a written request of Gladden Forest and after approval by the District Manager prior to the construction bidding therefor, the District may and, if the Project which is the subject of such request is not on real property in which Gladden Forest has an interest, shall, at the sole cost and expense of Gladden Forest cause any portion of the Infrastructure to be constructed pur- suant to the Plans and Specifications in a fashion which, in the sole discretion of the District Board, allows for development of the Prop- erty to proceed in accordance with the terms of the Land Development Agreement. Gladden Forest and Forest City Enterprises shall be lia- ble, jointly and severally, for the cost and expense of such portion of the Infrastructure pursuant to a separate completion guaranty and indemnity in form acceptable to the District Manager provided with the request described in the first sentence of this Section. (Underlying ownership of real property shall be determined in the final plat or final development plan process of the Municipality.) Section 2.2 (a) The construction of the Infrastructure which is the subject of this Article shall be bid, and such Infra- structure shall be constructed, in accordance with the requirements for bidding and constructing projects of the Municipality similar to the Projects. (b) Such Infrastructure (or any Project which is a part thereof) shall be bid in one or more parts by and in the name of 14 the District, and Construction Contracts shall be entered into with the bidders selected in accordance with the requirements for awarding contracts for projects of the Municipality similar to the Construction Contracts as specified in Article 3 -4 of the. Marana Code and any procurement guidelines promulgated in connection therewith. Section 2.3 Neither Gladden Forest nor Forest City Enter- prises (or any entity related to either of them) has been nor shall be compensated by the Municipality or the District for any costs of any Project except as provided herein. Section 2.4 Construction of any Project which is the sub- ject of this Article shall be financed (a) at any time before the sale and delivery of the Bonds (or after there are no available, unre- stricted proceeds of the sale of the Bonds remaining) only pursuant to Section 5.1(a) and (b) at any time after the sale and delivery of the Bonds (and while there are remaining available, unrestricted proceeds of the sale of the Bonds) only pursuant to Section 5.1(b). Section 2.5 (a) Unless the financial assurances described in the next subsection are provided, any advertisement for bids for construction of any Project which is the subject of this Article pursuant to Section 2.1 shall include the following language: "THE INFRASTRUCTURE WHICH IS THE SUBJECT OF THIS BID IS THE SUBJECT OF A DISTRICT DEVELOPMENT, FINANCIAL PARTICIPATION AND INTERGOVERNMENTAL AGREEMENT AMONG OWNER, THE TOWN OF MARANA, ARIZONA AND GLADDEN FOREST, LLC. THE SUCCESSFUL CONTRACTOR WILL NOT HAVE RECOURSE, DIRECTLY OR INDIRECTLY, TO SUCH TOWN OR OWNER FOR ANY COSTS UNDER ANY CONSTRUCTION CONTRACT OR ANY LIABILITY, CLAIM OR EXPENSE ARISING THEREFROM. 15 GLADDEN FOREST, LLC SHALL HAVE SOLE LIABILITY THEREFOR." (The Dis- trict is OWNER " for purposes of the foregoing.) (b) Each Construction Contract for such a Project shall provide that the respective contractors shall not have recourse, directly or indirectly, to the Municipality or the District for the payment of any costs pursuant to such Construction Contract or any liability, claim or expense arising therefrom and that Gladden Forest shall have sole liability therefor. In lieu of the foregoing, the District may require, or Gladden Forest may request, that Gladden For- est post financial assurances in a form and an amount determined acceptable in the sole and absolute discretion of the District Manager to provide for amounts due with respect to any of such Construction Contracts. Section 2.6 Plans and Specifications for any such Proj- ects shall be prepared by the Gladden Forest Engineer and shall be acquired by the District pursuant to Section 5.2(b) simultaneously with the financing of the construction of the related Project pursuant to Section 5.1(b). The District shall not be liable for any payment or repayment to Gladden Forest with respect to such Plans and Specifi- cations except as provided by this Agreement. ARTICLE III CONSTRUCTION OF ACQUISITION PROJECTS BY THE OWNER; CERTAIN MATTERS RELATED TO PLANS AND SPECIFICATIONS Section 3.1 Subject to the terms of this Agreement including the obligation under the circumstances described herein to 16 pay the Segment Price for a Segment as hereinafter provided, Gladden Forest shall cause the remainder of the Infrastructure (i.e., the Acquisition Infrastructure) to be constructed on real property in which Gladden Forest has an interest. With respect to the Infra- structure described in Exhibit "B" hereto, the construction thereof shall be at the sole cost and expense of Gladden Forest, for which Gladden Forest and Forest City Enterprises shall be liable, jointly and severally. With respect to the remainder of the Infrastructure, the construction thereof shall be at the sole cost and expense of Gladden - Forest, for which Gladden Forest shall be liable only. Glad- den Forest shall cause the public infrastructure described in Exhibit "B" hereto to be constructed before or by the time indicated in Exhibit "B" hereto. (Underlying ownership of real property in and on which the Acquisition Infrastructure is to be built shall be deter- mined in the final plat or final development plan process of the Municipality. For purposes of Section 3.3 of the Town of Marana Agreement for Construction of Potable and Non - Potable Water Facilities and Provision of Water Utility Service, entered into as of November 5, 2002 by and between the Municipality and Gladden Farms, LLC, subse- quently assigned to Gladden Forest, and the Gladden Farms Block Plats, 1 through 25 and A through F, as recorded in Book 55, Page 60 of Maps and Plats in the Office of the Recorder of Pima County, Arizona, the references therein to "Gladden Farms Development, Financing Participa- tion and Intergovernmental Agreement No. One" and "Gladden Farms Com- munity Facilities District No. One" shall be to this Agreement and the 17 District, respectively, retroactively to the effective date of each and for all purposes thereof and hereof.) Section 3.2 (a) The construction of the Acquisition Infrastructure and the preparation of the Plans and Specifications shall be bid pursuant to the provisions of Title 34, Chapter 2, Article 1, Arizona Revised Statutes, as amended, and in accordance with the requirements for construction projects and plans and specifi- cations, respectively, of the Municipality similar to the Acquisition Projects and the Plans and Specifications as specified in Article 3 -4 of the Marana Code and any procurement guidelines promulgated in con- nection therewith. Acquisition Project Construction Contracts shall be entered into with the bidders selected in accordance with the requirements for awarding contracts for projects of the Municipality similar to the Acquisition Project Construction Contracts as specified by such Code and guidelines, and contracts for preparation of the Plans and Specifications shall be entered into with the bidder selected in accordance with the requirements for awarding contracts for preparing plans and specifications of the Municipality similar to the Plans and Specifications as specified by such Code and guidelines. (Compliance with such requirements with respect to the Acquisition Projects shall be evidenced by a Certificate of the Engineers.) (b) As between Gladden Forest and the District, Glad- den Forest shall bear all risks, liabilities, obligations and respon- sibilities under each Acquisition Project Construction Contract and all risk of loss of or damage to any Acquisition Project (or any part i 18 thereof) occurring prior to the time of acquisition of such Acquisi- tion Project (or part thereof) pursuant to Article IV. (c) The Municipality and the District shall be named as an insured on any insurance policies required under a bid for an Acquisition Project and as a third party beneficiary with respect to all warranties, guarantees and bonds, if any, with respect thereto. (d) An indication of final payment and contract closeout shall be provided to the District Manager before any acqui- sition pursuant to Article IV. If any liens are placed on any portion of an Acquisition Project which is the subject of an Acquisition Project Construction Contract or if litigation ensues between Gladden Forest and any contractor with respect to an Acquisition Project Construction Contract, the District shall not acquire the Acquisition 0 Project or any portion thereof until such liens are removed or such litigation is resolved. Section 3.3 (a) Subsequent to the execution and delivery of this Agreement, any advertisement for bids for construction of any Acquisition Project or provision of any Plans and Specifications to be acquired shall clearly indicate that Gladden Forest will be the "owner" for purposes of the Acquisition Project Construction Contract or contract for such Plans and Specifications and shall include the following language: "THE WORK WHICH IS THE SUBJECT OF THE BID IS THE SUBJECT OF A DISTRICT DEVELOPMENT, FINANCING PARTICIPATION AND INTER- GOVERNMENTAL AGREEMENT AMONG OWNER, THE TOWN OF MARANA, ARIZONA, AND GLADDEN FARMS COMMUNITY FACILITIES DISTRICT PURSUANT TO WHICH SUCH WORK MAY BE ACQUIRED BY SUCH COMMUNITY FACILITIES DISTRICT. THE SUC- 19 CESSFUL CONTRACTOR WILL NOT HAVE RECOURSE, DIRECTLY OR INDIRECTLY, TO SUCH TOWN OR COMMUNITY FACILITIES DISTRICT FOR ANY COSTS UNDER ANY CONTRACT OR ANY LIABILITY, CLAIM OR EXPENSE ARISING THEREFROM. OWNER SHALL HAVE SOLE LIABILITY THEREFOR." (Gladden Forest is "OWNER" for purposes of the foregoing.) (b) Each Acquisition Project Construction Contract or contract for such Plans and Specifications shall provide that the respective contractors shall not have recourse, directly or indi- rectly, to the Municipality or the District for the payment of any costs pursuant to such Acquisition Project Construction Contract or contract for such Plans and Specifications or any liability, claim or expense arising therefrom and that Gladden Forest shall have sole liability therefor. Section 3.4 Gladden Forest shall provide for inspection of work performed under any Acquisition Project Construction Contract by the Engineers. Section 3.5 Any change order to any Acquisition Project Construction Contract shall be subject to approval by the Engineers (which approval shall not be unreasonably withheld or delayed) and shall be certified to in the applicable Certificate of the Engineers; provided, however, that any change order expected to increase the amount of an Acquisition Project Construction Contract shall be the subject of the same approval requirements that a change order to increase the cost of a construction contract of the Municipality would be subject unless modified -by action of the District Board and, spec- ifically, the approval of the District Manager. 20 ARTICLE IV ACQUISITION OF ACQUISITION PROJECTS FROM THE OWNER Section 4.1 (a) Subject to the other terms of this Agreement, Gladden Forest shall sell to the District, and the District shall acquire from Gladden Forest, the Segments for the Segment Prices. (b) Acquisition of a Segment shall be financed (1) at any time before the sale and delivery of the Bonds (or after there are no available, unrestricted proceeds of the sale of the Bonds remain- ing) only pursuant to Section 5.2(a), hereof and (2) at any time after - the sale and delivery of the Bonds (and while there are available, unrestricted remaining proceeds of the sale of the Bonds) only pursu- ant to Section 5.2(b) hereof. (c) The District shall not be liable for any payment or repayment to Gladden Forest with respect to the Acquisition Infra- structure except as provided by this Agreement. Section 4.2 The District shall pay the Segment Price for and acquire from Gladden Forest, and Gladden Forest shall accept the Segment Price for and sell to the District, each Segment as provided in Section 4.1 after the approval of the Report and within thirty (30) days after receipt by the District Manager of the following with respect to such Segment, in form and substance reasonably satisfactory to the District Manager; (a) the Certificate of the Engineers; (b) the Conveyance; 21 (c) evidence that public access to the Segment or the Acquisition Project, as applicable, has been or will be provided to the Municipality; (d) the assignment of all contractors' and material- men's warranties and guarantees as well as payment and performance bonds; (e) an acceptance letter issued by the Municipality and by its terms subject specifically to recordation of the Conveyance which is the subject of such letter and (f) such other documents, instruments, approvals or opinions as may reasonably be requested by the District Manager including, with respect to any real property re- lated to the Acquisition Project, title reports, insurance and opinions and evidence satisfactory to the District Man- ager that such real property does not contain environmental contaminants which make such real property unsuitable for its intended use or, to the extent such contaminants are present, a plan satisfactory to the District Manager which sets forth the process by which such real property will be made suitable for its intended use and the sources of funds necessary to accomplish such purpose. 22 ARTICLE V FINANCING OF COSTS OF PROJECTS AND PLANS AND SPECIFICATIONS Section 5.1 (a) (1) To provide for amounts due pursuant to any Construction Contract (including incidental costs relating thereto) before the sale and delivery of any of the Bonds and after there are no remaining, available, unrestricted proceeds of the sale of the Bonds, such amounts shall be advanced by Gladden Forest and the obligation to advance such amounts shall be the obligation of Gladden Forest, jointly and severally with Forest City Enterprises, pursuant to the terms of this Agreement. Each such advance shall be evidenced by a written acknowledgement of the District Manager included as part of the written approval of the Engineers of each pay request of the contractor for such Construction Contract. (2) As soon as possible after the sale and delivery of any of the Bonds, the total amounts so advanced by Gladden Forest for such purpose prior to the sale and delivery of the Bonds shall be paid to Gladden Forest from, and only from, the available, unrestricted proceeds of the sale of the Bonds to the extent only of the remaining amounts thereof. Neither the District nor the Munici- pality shall be liable to Gladden Forest (or any contractor or assigns under any Construction Contract) for payment of any such amount except to the extent available, unrestricted proceeds of the sale of the Bonds are available for such purpose, and no representation or war- ranty is given that the Bonds can be sold or that sufficient proceeds from the sale of the Bonds shall be available to pay such amounts. 23 (3) Until the sale and delivery of the Bonds and after there are no remaining, available, unrestricted proceeds of the sale of the Bonds, the District shall not have any obligation to repay Gladden Forest for any advance made by Gladden Forest to pay such amounts. (b) (1) Any amounts due pursuant to any Construc- tion Contract (including incidental costs relating thereto) after the sale and delivery of any of the Bonds (and while there are remaining, available, unrestricted proceeds of the sale of the Bonds) shall be provided for by the payment -of such amounts from, and only from, the available, unrestricted proceeds of the sale of the Bonds to the extent only of the remaining amounts thereof. (2) Until the sale and delivery of the Bonds, the District shall not have any obligation to pay such amounts. Neither the District nor the Municipality shall be liable to Gladden Forest (or any contractor or assigns under any Construction Contract) for payment of any such amount except to the extent available, unre- stricted proceeds of the sale of the Bonds are available for such purpose, and no representation or warranty is given that the Bonds can be sold or that sufficient, available, unrestricted proceeds from the sale of the Bonds shall be available to pay such amounts. Section 5.2 (a) (1) To provide for any acquisition of a Segment occurring before the sale and delivery of the Bonds and after there are no remaining, available, unrestricted proceeds of the sale of the Bonds, the Segment Price of that Segment shall be advanced 24 by Gladden Forest pursuant to the terms of this Agreement and the Conveyance for that Segment,. (2) As soon as possible after the sale and delivery of the Bonds, the amount advanced by Gladden Forest for the Segment Price of a Segment prior to the sale and delivery of the Bonds shall, subject to the requirements of Section 4.2, be paid to Gladden Forest (without interest for the period during which it was unpaid) from, and only from, the available, unrestricted proceeds of the sale of the Bonds to the extent only of the remaining amounts thereof. Neither the District nor the Municipality shall be liable to Gladden Forest (or any contractor or assigns under any Acquisition Project Construction Contract) for payment of any Segment Price except to the extent available, unrestricted proceeds of the sale of the Bonds are available for such purpose, and no representation or warranty is given that the Bonds can be sold or that sufficient available, unrestricted proceeds from the sale of the Bonds shall be available to pay any Segment Price. (3) Until the sale and delivery of the Bonds and after there are no available, unrestricted remaining proceeds of the sale of the Bonds, the District shall not have any obligation to repay Gladden Forest for any advance made by Gladden Forest to pay a Segment Price. (b) (1) Any acquisition of a Segment occurring after the sale and delivery of the Bonds or of Plans and Specifica- tions for a Project to be acquired which may occur only after sale and delivery of the Bonds (and while there are remaining, available, 25 unrestricted proceeds of the sale of the Bonds) shall, subject to the requirements of Section 4.2, be provided for by the payment of the Segment Price for such Segment or of the costs of such Plans and Specifications as determined by the District Engineer and the District Manager based on actual amounts paid by Gladden Forest to the Gladden Forest Engineer therefor from, and only from, the available, unre- stricted proceeds of the sale of the Bonds to the extent only of the remaining amounts thereof. (The District shall pay the costs of such Plans and Specifications to Gladden Forest as provided in Section 2.6 after approval of the Report and within thirty (30) days after receipt by the District Manager of evidence of exclusive ownership of the architectural materials (including memorandums, notes and preliminary and final drawings) and the related intellectual property rights (in- cluding copyright, if any) related to such Plans and Specifications, in all media, including electronic, and that the District shall be held harmless and be free to use such Plans and Specifications in any way it determines, including particularly, but not by way of limita- tion, giving them to another firm for the design of a similar struc- ture in form and substance reasonably satisfactory to the District Manages.) (2) Until the sale and delivery of the Bonds, the District shall not have any obligation to pay such Segment Price or such costs of such Plans and Specifications. Neither the District nor the Municipality shall be liable to Gladden Forest (or any con- tractor or assigns under any Acquisition Project Construction Con- tract) for payment of any Segment Price or for the costs of such Plans 26 and Specifications except to the extent available, unrestricted pro- ceeds of the sale of the Bonds are available for such purpose, and no representation or warranty is given that the Bonds can be sold or that sufficient, available, unrestricted proceeds from the sale of the Bonds shall be available to pay such Segment Price or such costs of such Plans and Specifications. ARTICLE VI MATTERS RELATING TO THE BONDS AND OTHER OBLIGATIONS OF THE DISTRICT Section 6.1 (a) Upon dates established by the District Manager in his sole and absolute discretion at the request of Gladden Forest, the District Board shall, from time to time, take all such reasonable action necessary for the District to issue and sell, pursu- ant to the provisions of the Act, an applicable amount of the Bonds in an amount sufficient to repay advances for or to pay directly from the available, unrestricted proceeds thereof the total of all amounts due for the purposes of any Construction Contract for the Infrastructure and the Segment Prices for the Acquisition Infrastructure and costs of the Plans and Specifications for the Infrastructure to be acquired, established or reasonably expected to be established pursuant hereto plus all relevant issuance costs related thereto. (To the extent the District is not otherwise prohibited from agreeing pursuant to appli- cable law, until the earlier of twenty (20) years from the date hereof and the issuance of all of the Bonds by the District, the District shall not undertake the issuance of any general obligation bonds to 27 finance costs of any public infrastructure other than the Infrastruc- ture (for which the District may at any time in its sole and absolute discretion undertake such financing) without written approval of Glad- den Forest, which consent shall not be withheld unreasonably.) (b) If the Bonds are not issued or if the available, unrestricted proceeds of the sale of the Bonds are insufficient to pay any or all of the amounts due described in Section 5.1(b) or all of the Segment Prices for the Acquisition Infrastructure and costs of the Plans and Specifications for the Infrastructure to be acquired, there shall be no recourse against the District or the Municipality for, and neither the District nor the Municipality shall have liability with respect to, such amounts so due or the Segment Prices for the Acquisi- tion Infrastructure, except from the available, unrestricted proceeds of the sale of the Bonds, if any and as applicable. Section 6.2 (a) The District shall, subject to the other conditions of this Agreement, issue, in one or more series in princi- pal amounts to be determined by the District Board, the Bonds at the sole discretion of the District Board. The District shall not issue any series of the Bonds unless the corresponding series of the Bonds shall receive one of the four highest investment grade ratings by a nationally recognized bond rating agency or shall be sold in other than a "public sale" (as such term is used in the Act) and with restrictions on subsequent transfer thereof under such terms as the District Board shall, in their sole discretion, approve. (b) The total aggregate principal amount of all of the series of the Bonds shall not exceed $23,000,000, leaving 28 $46,000,000 aggregate principal amount of general obligation bonds approved at the election described in the recitals to this Agreement which are not controlled by the terms of this Agreement. (c) Unless the provisions of subsection (d) of this section are satisfied, a series of the Bonds shall only be issued if the debt service therefor can be amortized with substantially equal amounts of annual debt service from amounts generated by a tax rate of not to exceed $2.50 per one hundred dollars of secondary assessed val- uation of property within the boundaries of the District as indicated on the tax roll for the current tax year. For purposes of the fore- going, a delinquency factor for tax collections equal to the greater of five percent (50) and the historic, average, annual, percentage delinquency factor for the District as of such Fiscal Year shall be assumed; all property in the District owned by Gladden Forest and Forest City Enterprises or any entity owned or controlled (as such term is used in the Securities Act) by Gladden Forest or Forest City Enterprises shall be assigned the last value such property had when categorized *as "vacant" for purposes of secondary assessed valuation and the debt service for any outstanding series of the Bonds thereto- fore issued shall be taken into account in determining whether such tax rate will produce adequate debt service tax collections; provided, however, that the first series of the Bonds shall be issued as soon as practicable to accomplish the goal of having the debt service tax costs therefor appear on the first tax bill applicable to any single family residential dwelling unit to be located within the boundaries of the District to be owned by other than Gladden Forest or Forest 29 City Enterprises or any entity owned or controlled (as such term is used in the Securities Act) by Gladden Forest or Forest City Enter- prises or any homebuilder to whom Gladden Forest or Forest City Enter- prises or any entity owned or controlled (as such term is used in the Securities Act) by Gladden Forest or Forest City Enterprises sells property within the boundaries of the District. (d) (1) If necessary in the sole discretion of the District Board, the "sale proceeds" of the sale of each series of the Bonds shall include an amount sufficient to fund a reserve fund, which shall be a reserve to secure payment of debt service on that series of the Bonds, in an amount equal to the maximum amount permitted by the Internal Revenue Code of 1986, as amended, and the Treasury Regula- tions applicable thereto. (2) If necessary in the sole discretion of the District Board to regulate the tax rate to be levied to pay debt serv- ice on each series of the Bonds, in consideration of the obligations of the District as of the date of delivery of the Bonds and as a condition to the issuance of the corresponding series of the Bonds, (A) a Standby Contribution Agreement shall be executed and delivered which provides, among the other matters provided for in this section, that on the date of initial issuance and delivery of the corresponding series of the Bonds and in each Fiscal Year thereafter, Gladden Forest shall be liable and obligated to pay to the District, or to provide adequate assurances in the sole and absolute discretion of the Dis- trict Board which provide, an amount necessary to maintain the tax rate with respect to the Bonds at no more than $2.50 per $100.00 of 30 - P f secondary assessed valuation for Total Debt Service, given the tax base of the District for such tax year and the debt service require- ments of the Bonds for such tax year assuming a delinquency factor of five percent (5 %) and after giving credit with respect to any such payment for any balance in the debt service fund for the Bonds and (B) a Payment Agreement shall be executed and delivered pursuant to which Gladden Forest shall deposit in the name of the District with a depository pursuant to a Depository Agreement cash in the amount equal to the Deposit Amount or a surety bond, letter of credit or other ade- quate security instrument acceptable in the sole and absolute discre- tion of the District Manager in lieu of such cash. Each Standby Contribution Agreement, each Payment Agreement and each Depository Agreement shall have general terms acceptable to the District Board and shall be in a final form acceptable in the sole and absolute dis- cretion of the District Manager. Such agreements shall specifically provide that amounts shall be payable by Gladden Forest, or provided by such assurances, pursuant to a Standby Contribution Agreement and a Payment Agreement only if the District has for that tax year adopted a resolution authorizing the levy of a tax rate for Total Debt Service of at least $2.50. (3) Each of the Standby Contribution Agreements shall have specific terms which provide the following: (A) Amounts due pursuant to a Standby Con- tribution Agreement shall be reduced by any interest earnings on the amounts held pursuant to the Depository Agreement which shall be paid 31 to the District to provide for such offset. (If not needed for such purpose, such interest earnings shall be paid to Gladden Forest.) (B) The obligation of Gladden Forest with respect to each of the Standby Contribution Agreements shall terminate upon the earlier of (I) payment in full of all of the outstanding Bonds or provision for such payment or (II) the first Fiscal Year in which principal of each series of the Bonds has started to be amortized for which the District Manager has received evidence satis- factory to the District Manager that, for at least three (3) consecu- tive Fiscal Years, a tax rate of $2.50 per $100 of secondary assessed valuation of property within the boundaries of the District would have been sufficient to pay maximum annual debt service with respect to the Bonds for any subsequent Fiscal Year plus the historical, annual, average of amounts necessary for payment of amounts described in Sec- tion 9.1 as of such Fiscal Year. Such evidence shall consist of a written projection, prepared by the financial advisor of the District, that is based upon the application of such secondary tax rate in light of the actual secondary assessed valuation of the property within the boundaries of the District for such Fiscal Year, assuming a delin- quency factor equal to the greater of five percent (5 %) and the his- toric, average, annual, percentage delinquency factor for the District as of such Fiscal Year and without credit for any fund balances or investment income accruing during such Fiscal Year. (After receipt of proof of satisfaction of such condition, the District Board shall approve in writing by affirmative action such termination, such approval not to be withheld unreasonably). 32 (4) Each of the Depository Agreements shall specifically provide in addition to the matters provided hereinabove that amounts held by the Depository pursuant to a Depository Agreement shall be applied to supplement ad valorem tax revenues of the District for the payment of Total Debt Service if amounts are not available for such purpose pursuant to the Standby Contribution Agreements. The Payment Agreements shall specifically provide in addition to the matters provided hereinabove that Gladden Forest shall be liable and obligated to deposit additional amounts pursuant to the Payment Agree- ments so that the amount on deposit or the security instrument in lieu thereof held pursuant to each of the Depository Agreements always equals the corresponding Deposit Amount. Each of the Payment Agree- ments shall specifically provide that it shall terminate, and each of the Depository Agreements shall specifically provide that any remain- ing cash amounts or security instrument in lieu thereof held pursuant thereto shall be paid or released, respectively, to Gladden Forest, upon the earlier of (A) payment in full of all of the outstanding Bonds or provision for such payment or (B) the first Fiscal Year in which principal of that series of the Bonds has started to be amor- tized for which the District Manager has received evidence satisfac- tory to the District Manager that, for such Fiscal Year, a tax rate of $2.50 per $100 of secondary assessed valuation of property within the boundaries of the District would have been sufficient to pay maximum annual debt service with respect to the Bonds for any subsequent Fiscal Year plus the historic, annual, average of amounts necessary for payment of amounts described in Section 9.1 as of such Fiscal 33 Year. Such evidence shall consist of a written projection, prepared by the financial advisor of the District, that is based upon the application of such secondary tax rate in light of the actual secondary assessed valuation of the property within the boundaries of the District for such Fiscal Year, assuming a delinquency factor equal to the greater of five percent (5 %) and the historic, average, annual, percentage delinquency factor for the District as of such Fiscal Year and without credit for any fund balances or investment income accruing during such Fiscal Year. (After receipt of proof of satisfaction of such condition, the District Board shall approve in writing by affirm- ative action such termination and payment or release, as applicable, such approval not to be withheld unreasonably.) Section 6.3 Other than (1) this Agreement, (2) the Bonds and (3) any obligations necessary in connection with either of the foregoing, the District shall not incur, or otherwise become obligated with respect to, any other obligations. ARTICLE VII ACCEPTANCE BY THE MUNICIPALITY Section 7.1 Simultaneously with the payment of the related Segment Price or completion of construction of a Project, the Segment of Acquisition Infrastructure or the Project constructed is hereby accepted (including for purposes of maintenance and operation thereof) by the Municipality, subject to the conditions pursuant to which facilities such as the Acquisition Projects and the Projects so 34 constructed are typically accepted by the Municipality and thereafter shall be made available for use by the general public. ARTICLE VIII INDEMNIFICATION Section 8.1 (a) Gladden Forest and Forest City Enter- prises (1) shall, jointly and severally, indemnify and hold harmless each Indemnified Party for, from and against any and all losses, claims, damages or liabilities, joint or several, arising from the actions of Gladden Forest and Forest City Enterprises (including, without limitation, the provision of information pertaining to the formation of the District by Gladden Forest or Forest City Enter- prises) or a failure of performance by Gladden Forest or Forest City Enterprises, relating to the formation, activities or administration of the District, or the carrying out of the provisions of this Sec- tion, including particularly but not by way of limitation and as lim- ited by the aforesaid for any losses, claims or damages or liabilities (A) related to any Acquisition Project Construction Contract or Proj- ect constructed pursuant to a Construction Contract including claims of any contractor, vendor, subcontractor or supplier, (B) to which any such Indemnified Party may become subject, under any statute or regulation at law or in equity or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue state- ment of a material fact set forth in any offering document relating to the Bonds, or any amendment or supplement thereto, or arise out of or 35 are based upon the omission or alleged omission to state therein a material fact required to be stated therein or which is necessary to make the statements therein, in light of the circumstances in which they were made, not misleading in any material respect and (C) to the extent of the aggregate amount paid in any settlement of any litiga- tion commenced or threatened arising from a claim based upon any such untrue statement or alleged untrue statement or omission or alleged omission if such settlement is effected with the written consent of Gladden Forest (which consent shall not be unreasonably withheld) and (2) shall reimburse any legal or other expenses reasonably incurred by any such Indemnified Party in connection with investigating or defending any such loss, claim, damage, liability or action. (b) Section 8.1(a) shall, however, not be applicable to any of the following: (1) matters involving any gross negligence or willful misconduct of any Indemnified Party, (2) any loss, claim, damage or liability for which insurance coverage is actually procured which names the District as an insured, in order to provide insurance against the errors and omissions of the District Board or the other representatives, agents or employees of the District and any loss, claim, damage or liability that is covered by any commercial general liability insurance policy actually procured which names the District as an insured (provided, however, that if Gladden Forest or Forest City Enterprises also have insurance coverage for any such loss, claim, damage or liability, claims shall be made first against such coverage), 36 (3) any loss, claim, damage or liability aris- ing from or relating to defects in any Infrastructure that are not known to Gladden Forest and are discovered two (2) years or more following acceptance thereof by the Municipality pursuant to Section 7.1 or (4) matters arising from or involving any breach of this Agreement by the District or any other Indemnified Party. (c) An Indemnified Party shall, promptly after the receipt of notice of a written threat of the commencement of any action against such Indemnified Party in respect of which indemnifica- tion may be sought against Gladden Forest or Forest City Enterprises, notify Gladden Forest in writing of the commencement thereof and pro- vide a copy of the written threat received by such Indemnified Party. Failure of the Indemnified Party to give such notice shall reduce the liability of Gladden Forest or Forest City Enterprises by the amount of damages attributable to the failure of the Indemnified Party to give such notice to Gladden Forest, but the omission to notify Gladden Forest of any such action shall not relieve Gladden Forest or Forest City Enterprises from any liability that any of them may have to such Indemnified Party otherwise than under this section. In case any such action shall be brought against an Indemnified Party and such Indemni- fied Party shall notify Gladden Forest of the commencement thereof, Gladden Forest may, or if so requested by such Indemnified Party shall, participate therein or defend the Indemnified Party therein, • with counsel satisfactory to such Indemnified Party and Gladden Forest 37 (it being understood that, except as hereinafter provided, Gladden Forest or Forest City Enterprises shall not be liable for the expenses of more than one counsel representing the Indemnified Parties in such action), and after notice from Gladden Forest to such Indemnified Party of an election so to assume the defense thereof, Gladden Forest and Forest City Enterprises shall not be liable to such Indemnified Party under this section for any legal or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof; provided, however, that unless and until Gladden Forest defends any such action at the request of such Indemnified Party, Gladden Forest shall have the right to participate at its own expense in the defense of any such action. If Gladden Forest shall not have employed counsel to defend any such action or if an Indemnified Party • shall have reasonably concluded that there may be defenses available to it and /or other Indemnified Parties that are different from or additional to those available to Gladden Forest (in which case Gladden Forest shall not have the right to direct the defense of such action on behalf of such Indemnified Party) or to other Indemnified Parties, the legal and other expenses, including the expense of separate coun- sel, incurred by such Indemnified Party shall be borne by Gladden Forest. (d) Neither Gladden Forest nor Forest City Enter- prises shall have any obligation to indemnify or hold harmless any Indemnified Party until such time that the Indemnified Party has exhausted all other insurance, risk retention or other indemnification • options or remedies available to it. In the event that the insurance, 38 risk retention or other indemnification options or remedies of the Indemnified Party are insufficient to reimburse the Indemnified Party for its actual losses, claims, damages or liabilities, then, and only then, shall the Indemnified Party have a right to indemnification from Gladden Forest or Forest City Enterprises, and only to the extent that indemnification by Gladden Forest or Forest City Enterprises will be secondary to, and in excess of, the primary insurance, risk retention or other indemnification options or remedies of the Indemnified Party. Section 8.2 To the extent permitted by applicable law, the District shall indemnify, defend and hold harmless each Indemni- fied Party for, from and against any and all liabilities, claims or demands for injury or death to persons or damage to property arising from in connection with, or relating to the performance of this Agreement. The District shall not, however, be obligated to indemnify the District Indemnified Parties with respect to damages caused by the negligence or willful misconduct of the District Indemnified Parties. The District shall not indemnify, defend and hold harmless the Munici- pality with respect to matters relating to public infrastructure owned by the Municipality. ARTICLE IX PAYMENT OF CERTAIN EXPENSES AND COSTS Section 9.1 To provide for expenses and costs for agents or third parties required to administer the Bonds and to levy and collect ad valorem taxes for payment of the Bonds and any purposes otherwise related to such activities of the District, amounts shall be 39 budgeted by the District Board each Fiscal Year in the District Budget for such purposes and shall be paid from amounts available from the tax levy described in Section 6.2(d). Section 9.2 To provide for the payment of the District Expenses and the O/M Expenses, the District Board shall levy all or a portion of the O/M Tax and shall apply the collections of the O/M Tax first to pay the District Expenses and second to pay the O/M Expenses. To the extent the collections of the O/M Tax are not sufficient to pay the District Expenses and the O/M Expenses, Gladden Forest shall, to the extent- of reasonable amounts necessary therefor, be liable and obligated to pay or, on a reasonable basis acceptable to the District Manager in his sole discretion, obligate a homeowner's or similar association to pay, to the District on July 1 of each Fiscal Year of the District the amount of any shortfall indicated in the District Budget with respect to the District Expenses and the O/M Expenses, including any amount required because of any shortfall in the prior Fiscal Year as provided in such District Budget and no matter how such shortfall was otherwise funded. The District shall only levy the O/M Tax in an amount necessary for the District Expenses and the O/M Expenses reflected in the District Budget for the Fiscal Year of the District and only in reasonable amounts therefor. The obligations of Gladden Forest pursuant to this Section shall not exceed $100,000 per Fiscal Year beginning with the first full Fiscal Year after the exe- cution and delivery hereof by the District [provided, however, that for any period prior thereto such obligations shall not exceed $100,000 times the number of full months remaining in such Fiscal Year 40 divided by twelve (12)] and shall only be effective until the July 1 after the levy of the O/M Tax at $0.30 per $100.00 of secondary assessed valuation could first result in collections of $100,000, given the tax base of the District for the applicable tax year and assuming a delinquency factor of five percent (5 %). The Letter of Credit shall be provided by Gladden Forest by March 12, 2004, and otherwise until the July 1 after the levy of the O/M Tax as described in the preceding sentence first results in collections of $100,000 and shall be drawn to its full amount, payable to the District, upon the written demand of the District Manager or the District Treasurer to the institution supplying the Letter of Credit if any of the following occurs: (a) the nonpayment by July 31 of any Fiscal Year of any amount due pursuant to this Section by Gladden Forest; (b) the cancellation, termination or non - renewal of the Letter of Credit and a failure by Gladden Forest to substitute the Letter of Credit not less than thirty (30) days before its cancellation, termination or expiration date or (c) a reduction of the rating for the uninsured, unsecured and unguaranteed obligations of the issuer of the Letter of Credit as promulgated by S &P below "A" without the District having received within sixty (60) days after the date of such reduction a substitute for the Letter of Credit. Section 9.3 Gladden Forest shall deposit $25,000 as a deposit on account to be applied by the Municipality in its sole and absolute discretion to pay Initial Expenses upon written demand by the District Manager. When $20,000 of the $25,000 deposit is expended, an accounting will be made to Gladden Forest of all amounts incurred by 41 the Municipality for the Initial Expenses to date, and Gladden Forest shall be liable and obligated to provide additional funds as necessary for the Initial Expenses in an amount requested by the Municipality which must be paid forthwith and which shall thereafter be the subject of a similar accounting. Amounts paid pursuant to this Section by Gladden Forest which may be reimbursed under applicable law to Gladden Forest from the proceeds of the sale of the Bonds shall, at the request of Gladden Forest and to the extent of available amounts therefor, be included as part of the purpose of the Bonds. The obli- gations of .Gladden Forest pursuant to this Section shall only be effective until the July 1 after the date that the first collections of the O/M Tax are received by the District. ARTICLE X MISCELLANEOUS Section 10.1 None of the Municipality, the District, Gladden Forest nor Forest City Enterprises shall knowingly take, or cause to be taken, any action which would cause interest on any Bond to be includable in gross income for federal income tax purposes pur- suant to Section 61 of the Internal Revenue Code of 1986, as amended. Section 10.2 (a) To provide evidence satisfactory to the District Manager that any prospective purchaser of land within the boundaries of the District has been notified that such land is within the boundaries of the District and that the Bonds may be then or in the future be outstanding, the Disclosure Statement shall be produced by Gladden Forest; provided, however, that the Disclosure Statement 42 may be modified as necessary in the future to adequately describe the District and the Bonds and source of payment for debt service therefor as agreed by the District Manager and Gladden Forest. (b) Gladden Forest shall or shall require that Gladden Forest or each homebuilder to whom Gladden Forest has sold land: (1) cause any purchaser of land to sign the Disclosure Statement upon entering into a contract for purchasing such land; (2) provide a copy of each fully executed Dis- closure Statement to be filed with the District Manager and (3) provide such information and documents, including audited financial statements to any necessary repository or depository, but only to the extent necessary for the underwriters of the Bonds to comply with Rule 15c2 -12 of the Securities Exchange Act of 1934. Section 10.3 This Agreement shall be binding upon and shall inure to the benefit of the parties to this Agreement and their respective legal representatives, successors and assigns; provided, however, that none of the parties hereto shall be entitled to assign its right hereunder or under any document contemplated hereby without the prior written consent of the other parties to this Agreement,`. i' which consent shall not be unreasonably withheld. I Section 10.4 Each party hereto shall, promptly upon the request of any other, have acknowledged and delivered to the other any and all further instruments and assurances reasonably requested or 43 appropriate to evidence or give effect to the provisions of this Agreement. Section 10.5 This Agreement sets forth the entire under- standing of the parties as to the matters set forth herein as of the date this Agreement is executed and cannot be altered or otherwise amended except pursuant to an instrument in writing signed by each of the parties hereto; provided, however, that such an amendment shall be effective against Gladden Forest and Forest City Enterprises and the District only if such amendment does not amend Section 7.1 or 9.3 and shall be effective against Gladden Forest and Forest City Enterprises, the District and the Municipality, as applicable, only if such amend- ment only amends Section 7.1 or 9.3 as it relates to the Municipality. This Agreement is intended to reflect the mutual intent of the parties with respect to the subject matter hereof, and no rule of strict con- struction shall be applied against any party. Section 10.6 This Agreement shall be governed by and interpreted in accordance with the laws of the State. Section 10.7 The waiver by any party hereto of any right granted to it under this Agreement shall not be deemed to be a waiver of any other right granted in this Agreement nor shall the same be deemed to be a waiver of a subsequent right obtained by reason of the continuation of any matter previously waived under or by this Agreement. Section 10.8 This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be 44 deemed to be an original, but all of which taken together shall con- stitute one of the same instrument. Section 10.9 The Municipality and the District may, within three years after its execution, cancel this Agreement, without penalty or further obligation, if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Municipality or the District, respectively, is, at any time while this Agreement is in effect, an employee or agent of Gladden Forest or Forest City Enterprises in any capacity or a con- sultant to any other party of. this Agreement with respect to the subject matter of this Agreement and may recoup any fee or commission paid or due any person significantly involved in initiating, negotiat- ing, securing, drafting or creating this Agreement on behalf of the Municipality or the District, respectively, from Gladden Forest or Forest City Enterprises arising as the result of this Agreement. Gladden Forest and Forest City Enterprises have not taken and shall not take any action which would cause any person described in the pre- ceding sentence to be or become an employee or agent of Gladden Forest or Forest City Enterprises in any capacity or a consultant to any party to this Agreement with respect to the subject matter of this Agreement. Section 10.10 The term of this Agreement shall be as of the date of the execution and delivery hereof by each of the parties hereto and shall expire upon the earlier of the agreement of the Dis- trict, the Municipality, Gladden Forest and Forest City Enterprises to the termination hereof, February 1, 2054, and the date on which all of 45 the Bonds are paid in full or defeased to the fullest extent possible pursuant to the Act. Section 10.11 All notices, certificates or other communi- cations hereunder (including in the Exhibits hereto) shall be suffi- ciently given and shall be deemed to have been received 48 hours after deposit in the United States mail in registered or certified form with postage fully prepaid addressed as follows: If to the Municipality: 13251 North Lon Adams Road Marana, Arizona 85653 Attention: Manager If to the District: 13251 North Lon Adams Road Marana, Arizona 85653 Attention: Manager If to Gladden Forest: Gladden Forest LLC 333 E. Wetmore Road, Suite 250 Tucson, Arizona 85705 Attn: Dean Wingert, Senior Vice President If to Forest City Enterprises: Forest City Enterprises, Inc. Suite 1160 50 Public Square Cleveland,.Ohio 44113 -2267 Attn: General Counsel Any of the foregoing, by notice given hereunder, may designate differ- ent addresses to which subsequent notices, certificates or other com- munications will be sent. Section 10.12 If any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, 46 such holding shall not invalidate or render unenforceable any other provision thereof. Section 10.13 The headings or titles of the several Arti- cles and Sections hereof and in the Exhibits hereto, and any table of contents appended to. copies hereof and thereof, shall be solely for convenience of reference and shall not affect the meaning, construc- tion or effect of this Agreement. Section 10.14 This Agreement does not relieve any party hereto of any obligation or responsibility imposed upon it by law; provided, however, that if the provisions of this Agreement conflict in any particular with those of the Land Development Agreement relat- ing to the District, the provisions of this Agreement shall supersede and control those of the Land Development Agreement, as amended, in all respects. Section 10.15 No later than ten (10) days after this Agreement is executed and delivered by each of the parties hereto, Gladden Forest shall on behalf of the Municipality and the District record a copy of this Agreement with the County Recorder of Pima County, Arizona. Section 10.16 Unless otherwise expressly provided, the representations, covenants, indemnities and other agreements contained herein shall be deemed to be material and continuing, shall not be merged and shall survive any conveyance or transfer provided herein. Section 10.17 If any party .hereto shall be unable to observe or perform any covenant or condition herein by reason of Force Majeure, then the failure to observe or perform such covenant or con- 47 dition shall not constitute a default hereunder so long as, such party shall use its best efforts to remedy with all reasonable dispatch the event or condition causing such inability and such event or condition can be cured within a reasonable amount of time. Section 10.18 Whenever the consent or approval of any party hereto, or of any agency therefor, shall be required under the provisions hereof, such consent or approval shall not be unreasonably withheld, conditioned or delayed unless specifically otherwise limited as provided herein. Section 10.19 Notwithstanding any other provision of this Agreement to the contrary, the provisions of Sections 7.1, 8.1, 8.2, 9.3, 10.1, 10.3, 10.4, 10.5, 10.6, 10.7, 10.8, 10.9, 10.10, 10.11, 10.12, 10.13, 10.14, 10.15, 10.17, 10.18, 10.19 and 10.20 are the only provisions that are effective against the Municipality for purposes of the Intergovernmental Agreement Act and as the Intergovernmental Agreement Act is intended to be applied for purposes of this Agree- ment. Section 10.20 (a) Notwithstanding any provision of this Agreement to the contrary, no act, requirement, payment, or other agreed upon action to be done or performed by the Municipality or the District which would, under any federal, state, or Town constitution, statute, charter provision, ordinance or regulation, require formal action, approval or concurrence by -the Council or the District Board, respectively, shall be required to be done or performed by the Munici- pality or the District, respectively, unless and until said formal action of the Council or the District Board, respectively, has been 48 taken and completed. This Agreement in no way acquiesces to or obli- gates the Municipality or the District to perform a legislative act. (b) Failure or unreasonable delay by any party to perform or otherwise act in accordance with any term or provision of this Agreement for a period of thirty (30) days (hereinafter referred to as the "Cure Period ") after written notice thereof from any other party, shall constitute a default under this Agreement; provided, how- ever, that if the failure or delay is such that more than thirty (30) days would reasonably be required to perform such action or comply with any term or provision hereof, then such party shall have such additional time as may be necessary to perform or comply so long as such party commences performance or compliance within said thirty (30) day period and diligently proceeds to complete such performance or fulfill such obligation and further that the foregoing shall not apply to the last sentence of Section 9.2. Said notice shall specify the nature of the alleged default and the manner in which said default may be satisfactorily cured, if possible. In the event such default is not cured within the Cure Period, any non - defaulting party shall have all rights and remedies that are set forth in the next subsection. (c) Except as provided in subsection (b), the parties shall be limited to the remedies and the dispute resolution procedure set forth in this subsection and subsection (d). Any decision rend- ered by the Panel pursuant to the provisions of subsection (d) shall be binding on the parties unless and until a court of competent jurisdiction renders its final decision on the disputed issue, and if any party does not abide by the decision rendered by the Panel during 49 i the pendency of an action before the court of competent jurisdiction or otherwise (if no court action), any other party may institute an action for money damages on the issues that were the subject of the Panel's decision and /or any other relief as may be permitted by law. (d) (1) If an event of default is not cured within the Cure Period, any non - defaulting party may institute the dispute resolution process set forth in this subsection (hereinafter referred to as the "Process ") by providing written notice initiating the Proc- ess (hereinafter referred to as the "Initiation Notice ") to the defaulting party. (2) Within fifteen (15) days after delivery of the Initiation Notice, each involved party shall appoint one person to serve on an arbitration panel (herein referred to as the "Panel "). Within twenty -five (25) days after delivery of the Initiation Notice, the persons appointed to serve on the Panel shall themselves appoint one person to serve as a member of the Panel. Such person shall function as the chairman of the Panel. (3) The remedies available for award by the Panel shall be limited to specific performance, declaratory relief and injunctive relief. (4) Any party can petition the Panel for an expedited hearing if circumstances justify it. Such circumstances shall be similar to what court would view as appropriate for injunc- tive relief or temporary restraining orders. In any event, the hear- ing of any dispute not expedited shall commence as soon as practica- ble, but in no event later than forty -five (45) days after selection 50 of the chairman of the Panel. This deadline can be extended only with the consent of all parties to the dispute or by decision of the Panel upon a showing of emergency circumstances. (5) The chairman of the Panel shall conduct the hearing pursuant to the Center For Public Resources' Rules for Non - Administered Arbitration of Business Disputes then in effect. The chairman of the Panel shall determine the nature and scope of dis covery, if any, and the manner of presentation of relevant evidence, consistent with the deadlines provided herein, and the parties' objec- tive that disputes be resolved in a prompt and efficient manner. No discovery may be had of privileged materials or information. The chairman of the Panel upon proper application shall issue such orders as may be necessary and permissible under law to protect confidential, proprietary or sensitive materials or information from public disclo- sure or other misuse. Any party may make application to the Court to have a protective order entered as may be appropriate to confirm such orders of the chairman of the Panel. (6) The hearing, once commenced, shall proceed from business day to business day until concluded, absent a showing of emergency circumstances. Except as otherwise provided herein, the Process shall be governed by the Uniform Arbitration Act as enacted in the State. (7) The Panel shall, within fifteen (15) days from the conclusion of any hearing, issue its decision. The decision shall be rendered in accordance with this Agreement and the laws of the State. 51 (8) Any involved party may appeal the decision of the Panel to the Court for a de novo review of the issues decided by the Panel, if such appeal is made within thirty (30) days after the Panel issues its decision. The remedies available for award by the Court shall be limited to specific performance, declaratory relief and injunctive relief. The decision of the Panel shall be binding on both parties until the Court renders a binding decision. If a non- prevail- ing party in the Process fails to appeal to the Court within the time frame set forth herein, the decision of the Panel shall be final and binding. If one party does not comply with the decision of the Panel during the pendency of the action before the Court or otherwise, then another party shall be entitled to exercise all rights and remedies that may be available under law or equity, including without limita- tion the right to institute an action for money damages related to the default that was the subject of the Panel's decision and the provi- sions of this subsection shall not apply to such an exercise of rights and remedies_ (9) All fees and costs associated with the Process before the Panel, including without limitation the fees of the Panel, other fees, and the prevailing party's attorneys' fees, expert witness fees and costs, shall be paid by the non - prevailing party or parties. The determination of prevailing and non - prevailing parties, and the appropriate allocation of fees and costs, shall be included in the decision by the Panel. Similarly, all fees and costs associated with an appeal to the Court or any appellate court thereafter, includ- ing without limitation, the prevailing party's attorneys' fees, expert 52 witness fees and costs, shall be paid by the non - prevailing party. The determination of prevailing and non - prevailing parties, and the appropriate allocation of fees and costs, shall be included in the decision by the Court. 53 IN WITNESS WHEREOF, the officers of the Municipality and of the District have duly affixed their signatures and attestations, and the officers of Gladden Forest and Forest City Enterprises their signatures, all as of the day and year first written above. TOWN OF MARANA, ARIZONA By ..... ............................... Bobby Sutton, Jr., Mayor ATTEST; . ............................... Jocelyn C. Bronson, Town Clerk Pursuant to A.R.S. Section 11- 952(D), this Agreement has been reviewed by the undersigned attorney for the Municipality who has determined that this Agreement is in proper form and is within the powers and author - ity granted pursuant to the laws of this State to the Munici- pality Frank Cassidy, Town Attorney 54 GLADDEN FARMS COMMUNITY FACILITIES DISTRICT By ..... ............................... Bobby Sutton, Jr., Chairman, District Board ATTEST: . . ............................... Jocelyn C. Bronson, District Clerk Pursuant to A.R.S. Section 11- 952(D), this Agreement has been reviewed by the undersigned attorney for the District, who has determined that this Agree- ment is in proper form and is within the powers and authority granted pursuant to the laws of this State to the District . ............................... Frank Cassidy, District Counsel 55 GLADDEN FOREST, LLC, an Arizona Limited liability company By: Its Managing Member, Forest City Land Group, Inc., an Ohio corporation By ..... ............................... Dean Wingert, Vice President FOREST CITY ENTERPRISES, INC., an Ohio corporation By ..... ............................... 4 Printed Name: ......................... Title: ................................ ` 56 STATE OF ARIZONA ) ) ss. COUNTY OF PIMA ) The foregoing instrument was acknowledged before me on this ...... day of .............. 2004, by Bobby Sutton, Jr., as Mayor of the Town of Marana, Arizona, a municipal corporation under the laws of the State of Arizona. ....... ............................... Notary Public My commission expires; ...................... STATE OF ARIZONA ) ss COUNTY OF PIMA ) The foregoing instrument was acknowledged before me on this ...... day of .............. 2004, by Bobby Sutton, Jr., as Chairman of the District Board of Gladden Farms Community Facilities District, an Arizona community facilities district. Notary Public My commission expires; 57 STATE OF ARIZONA ) ss. COUNTY OF PIMA ) The foregoing instrument was acknowledged before me on this ..... day of 2004, by Dean Wingert, Vice President of Forest City Land Group, Inc., an Ohio corporation, managing member of Gladden Forest, LLC, an Arizona limited liability company, on behalf of the limited liability company. ....... ............................... Notary Public My commission expires: ...................... STATE OF .......... ) ) ss. COUNTY OF .......... ) The foregoing instrument was acknowledged before me on this ..... day of 2004, by an authorized representative of Forest City Enterprises, Inc., an Ohio corporation, on behalf of the corporation. ....... ............................... Notary Public My commission expires: ...................... 58 ATTACHMENTS: EXHIBIT A -- Legal Description Of The Property EXHIBIT B -- Description Of Certain Infrastructure EXHIBIT C -- Form Of Certificate Of Engineers For Conveyance Of Segment Of Project EXHIBIT D -- Form Of Conveyance Of Segment Of Project EXHIBIT E -- Form Of Disclosure Statement 1303883.11- 2/12/04 59 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT ALL OF GLADDEN FARMS BLOCKS 1 THRU 25 AND A THRU F, EXCEPT BLOCK D, AS SHOWN ON THE PLAT RECORDED IN BOOK 55 OF MAPS AND PLATS AT PAGE 60, RECORDS OF THE PIMA COUNTY RECORDER, PIMA COUNTY, ARIZONA, BEING PORTIONS OF SECTIONS 33 AND 34 OF TOWNSHIP 11 SOUTH, RANGE 11 EAST, GILA AND SALT RIVER MERIDIAN, PIMA COUNTY,. ARIZONA, FURTHER DESCRIBED AS FOLLOWS: COMMENCING AT A ' IRON PIN (NO TAG) AT THE NORTHEAST CORNER OF SAID SECTION 34; THENCE SOUTH 0 0 30 1 09" EAST 322.00 FEET UPON THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34 TO THE POINT OF BEGINNING; THENCE CONTINUE SOUTH 0 0 30'09" EAST 2322.59 FEET UPON SAID EAST LINE AND UPON THE EAST LINE OF SAID GLADDEN FARMS TO A ALUMINUM CAPPED PIN, LS 7599, AT THE EAST QUARTER CORNER OF SAID SECTION 34; THENCE SOUTH 0 0 30 1 03" EAST 2644.34 FEET UPON THE EAST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 34 AND UPON SAID EAST LINE OF GLADDEN FARMS TO A 1 - 1 2" IRON PIN, NO TAG, AT THE SOUTHEAST CORNER OF SAID SECTION 34; THENCE SOUTH 89 0 22'30" WEST 187.66 FEET UPON THE SOUTH LINE OF SAID SOUTHEAST QUARTER AND UPON THE SOUTH LINE OF SAID GLADDEN FARMS TO THE SOUTHEAST CORNER OF CMID WELL SITE NO. 18 AS SHOWN ON SAID PLAT; THENCE NORTH 0 0 37'30" WEST 100.00 FEET UPON THE EAST LINE OF SAID WELL SITE TO THE NORTHEAST CORNER THEREOF; THENCE SOUTH 89 0 22'30" WEST 75.00 FEET UPON THE NORTH LINE OF SAID WELL SITE TO THE NORTHWEST CORNER THEREOF; THENCE SOUTH 0 EAST 100.00 FEET UPON THE WEST LINE OF SAID WELL SITE TO THE SOUTHWEST CORNER THEREOF BEING ON SAID SOUTH LINE OF THE SOUTHEAST QUARTER; THENCE SOUTH 89 0 22'30" WEST 3885.00 FEET CONTINUING UPON THE SOUTH LINE OF SAID SOUTHEAST QUARTER AND UPON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 34, BEING THE SOUTH LINE OF SAID GLADDEN FARMS, TO THE SOUTHWEST CORNER OF BLOCK B OF GLADDEN FARMS AS SHOWN ON SAID PLAT, BEING ON THE NORTHEASTERLY RIGHT OF WAY LINE OF SANDARIO ROAD AND A POINT ON THE ARC OF A NON- TANGENT CURVE CONCAVE SOUTHWESTERLY, THE RADIUS POINT OF SAID CURVE BEARS SOUTH 68 0 20'49" WEST, FOR REFERENCE, AN ALUMINUM CAPPED PIN, RLS 7599, AT THE SOUTHWEST CORNER OF SAID SECTION 34 BEARS SOUTH 89 0 22'30" WEST AT A DISTANCE OF 1124.04 FEET; THENCE THE FOLLOWING THREE COURSES UPON SAID RIGHT OF WAY LINE AND UPON SAID SOUTHWEST LINE OF BLOCK B: 1) NORTHWESTERLY UPON SAID ARC, TO THE LEFT, HAVING A RADIUS OF 746.20 FEET AND A CENTRAL ANGLE OF 48 0 17'38 ", FOR AN ARC DISTANCE OF 628.96 FEET TO A TANGENT LINE; A -1 2) NORTH 69 0 5649" WEST 593.45 FEET TO A POINT ON THE ARC OF A TANGENT CURVE CONCAVE NORTHEASTERLY; 3) NORTHWESTERLY UPON SAID ARC, TO THE RIGHT, HAVING A RADIUS OF 160.99 FEET AND A CENTRAL ANGLE OF 69 0 26'33 ", FOR AN ARC DISTANCE OF 195.12 FEET TO A THE TANGENT EAST RIGHT OF WAY LINE OF SAID SANDARIO ROAD BEING THE WEST LINE OF SAID GLADDEN FARMS; THENCE NORTH 0 0 30'16" WEST 1862.79 FEET UPON SAID EAST RIGHT OF WAY LINE AND UPON SAID WEST LINE TO AN ANGLE POINT; THENCE SOUTH 89 0 29'44" WEST 30.04 FEET UPON SAID WEST LINE TO A IRON PIN, NO TAG, AT THE WEST QUARTER CORNER OF SAID SECTION 34, BEING ALSO THE EAST QUARTER CORNER OF SAID SECTION 33; THENCE SOUTH 89 0 17'57" WEST 1321.01 FEET UPON SAID WEST LINE AND UPON THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33 TO AN ANGLE POINT; THENCE NORTH 0 0 34'17" WEST 2610.03 FEET UPON SAID WEST LINE TO THE NORTHWEST CORNER OF SAID GLADDEN FARMS, BEING A POINT ON THE SOUTH RIGHT OF WAY LINE OF MOORE ROAD PRIOR TO. THE DEDICATION OF ADDITIONAL RIGHT OF WAY AS SHOWN ON SAID PLAT, BEING A LINE 30.00 FEET SOUTHERLY OF AND PARALLEL WITH THE NORTH LINE OF SAID NORTHEAST QUARTER OF SECTION 33; THENCE NORTH 89 0 20'24" EAST 1320.79 FEET UPON THE NORTH LINE OF SAID GLADDEN FARMS, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON SAID PARALLEL LINE TO AN ANGLE POINT; THENCE NORTH 89 0 25'03" EAST 2634.98 FEET UPON SAID NORTH LINE, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON A LINE PARALLEL WITH AND 30.00 FEET SOUTHERLY OF THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 34 TO AN ANGLE POINT; THENCE NORTH 89 0 25'03" EAST 2283.27 FEET UPON SAID NORTH LINE, UPON SAID PRIOR RIGHT OF WAY LINE AND UPON A LINE PARALLEL WITH AND 30.00 FEET SOUTHERLY OF THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 34; THENCE SOUTH 0 0 30'13" EAST 292.00 FEET; THENCE. NORTH 89. 0 25'03" EAST 357.00 FEET TO THE POINT OF BEGINNING. I A -2 EXHIBIT B DESCRIPTION OF CERTAIN INFRASTRUCTURE Water main and sewer trunkline to a point designated by the District along the boundary of the District with Heritage Park - December 31, 2004 Full length and width of Gladden Farms Drive (including landscaping) - December 31, 2004 Two lanes of Heritage Park Road south of Tangerine Farms Road to the Heritage Park boundary - December 31, 2004 Two lanes of the Heritage Park Road to connect Heritage Park to the Gladden Farms Regional Park - Completion of construction of Gladden Farms Regional Park B -1 EXHIBIT C FORM OF CERTIFICATE OF ENGINEERS FOR CONVEYANCE OF SEGMENT OF ACQUISITION PROJECT CERTIFICATE OF ENGINEERS FOR CONVEYANCE OF SEGMENT OF ACQUISITION PROJECT (insert description of Acquisition Project /Segment) STATE OF ARIZONA ) COUNTY OF PIMA ) TOWN OF MARANA ) ss. GLADDEN FARMS COMMUNITY ) FACILITIES DISTRICT ) We the undersigned, being Professional Engineers in the State of Arizona and, respectively, the duly appointed District Engineer for Gladden Farms Community Facilities District (hereinafter referred to as the "District "), and the engineer employed by Gladden Forest, LLC (hereinafter referred to as "Gladden Forest "), each hereby certify for purposes of the District Development, Financing Participa- tion and Intergovernmental Agreement (Gladden Farms Community Facilities District), dated as of February 1, 2004 (hereinafter referred to as the "Agreement ", by and among the District, the Town of Marana, Arizona, Gladden Forest and Forest City Enterprises, Inc. that: 1. The Segment indicated above has been performed in every detail pursuant to the Plans and Specifications (as such term and all of the other initially capitalized terms in this Certificate are defined in the Agreement) and the Acquisition Project Construction Contract (as modified by any change orders permitted by the Agreement) for such Segment. 2. The Segment Price as publicly bid and including the cost of approved change orders for such Segment is $ ............. 3. Gladden Forest provided for compliance with the requirements for public bidding for such Segment as required by the Agreement (including, particularly but not by way of limitation, Title 34, Chapter 2, Article 1, Arizona Revised Statutes, as amended) in connection with award of the Acquisition Project Construction Contract for such Segment. 4. Gladden Forest filed all construction plans, specifi- cations, contract documents, and supporting engineering data for the construction or installation of such Segment with the Municipality. C -1 5. Gladden Forest obtained good and sufficient perform- ance and payment bonds in connection with such Contract. DATED AND SEALED THIS ...... DAY OF ................ 200.. By..... ............................... District Engineer [P.E. SEAL] [P.E. SEAL] By ..... ............................... Engineer for Gladden Forest [Confirmed for purposes of Section 3.5 of the Development Agreement by Manager for Gladden Farms Community Facilities District *] [THIS WILL BE REQUIRED FOR EVERY SEGMENT ACQUIRED WITH PROCEEDS OF THE SALE OF THE BONDS!!!] * To be inserted if the provisions of Section 3.5 hereof are applicable to the respective Segment of the Project C -2 EXHIBIT D FORM OF CONVEYANCE OF SEGMENT OF ACQUISITION PROJECT CONVEYANCE OF SEGMENT OF ACQUISITION PROJECT (Insert description of Acquisition Project /Segment) STATE OF ARIZONA ) COUNTY OF PIMA ) TOWN OF MARANA ) ss. GLADDEN FARMS COMMUNITY ) FACILITIES DISTRICT ) KNOW ALL MEN BY THESE PRESENTS THAT: ...... ............................... ( " Gladden Forest "). for good and valuable consideration received by Gladden Forest from Gladden Farms Community Facilities District, a community facilities district formed by the Town of Marana, Arizona (the "Municipality ") , and duly organized and validly existing pursuant to the laws of the State of Arizona (the "District ") , receipt of which is hereby acknowl- edged [, and the promise of the District to hereafter pay the amounts described in the hereinafter described Development Agreement"], does by these presents grant, bargain, sell and convey to the District, its successors and assigns, all right, title and interest in and to the following described property, being the subject of a District Develop- ment, Financing Participation and Intergovernmental Agreement (Gladden Farms Community Facilities District), dated as of February 1, 2004, by and among Gladden Forest, Forest City Enterprises, Inc., the Munic- ipality and the District and more completely described in such Devel- opment Agreement: [Insert description of Acquisition Project /Segment] together with any and all benefits, including warranties and performance and payment bonds, under the Acquisition Project Construc- tion Contract (as such term is defined in such Development Agreement) or relating thereto, all of which are or shall be located within utility or other public easements dedicated or to be dedicated by plat or otherwise free and clear of any and all liens, easements, restric- tions, conditions, or encumbrances affecting the same [, such subse- quent dedications not affecting the promise of the District to here- after pay the amounts described in such Development Agreement] , but subject to all taxes and other assessments, reservations in patents, and all easements, rights -of -way, encumbrances, liens, covenants, * Insert with respect to any acquisition financed pursuant to Section 5.2(a) hereof. D -1 conditions, restrictions, obligations, leases, and liabilities or other matters as set forth on Exhibit I hereto. TO HAVE AND TO HOLD the above - described property, together with all and singular the rights and appurtenances thereunto in any- wise belonging, including all necessary rights of ingress, egress, and regress, subject, however, to the above - described exception(s) and reservation(s), unto the District, its successors and assigns, for- ever; and Gladden Forest does hereby bind itself, its successors and assigns to warrant and forever defend, all and singular, the above - described property, subject to such exception(s) and reservation(s), unto the District, its successors and assigns, against the acts of Gladden Forest and no other. Gladden Forest binds and obligates itself, its successors and assigns, to execute and deliver at the request of the District any other or additional instruments of transfer, bills of sale, convey- ances, or other instruments or documents which may be necessary or desirable to evidence more completely or to perfect the transfer to the District of the above - described property, subject to the excep- tions) and reservation(s) hereinabove provided. This conveyance is made pursuant to such Development Agree ment, and Gladden Forest hereby agrees that the amounts specified above and paid [or promised to be paid *] to Gladden Forest hereunder satisfy in full the obligations of the District under such Development Agreement and hereby releases the District from any further responsi- bility to make payment to Gladden Forest under such Development Agreement except as above provided. Gladden Forest, in addition to the other representations and warranties herein, specifically makes the following representa- tions and warranties: 1. Gladden Forest has the full legal right and authority to make the sale, transfer, and assignment herein provided. 2. Gladden Forest is not a party to any written or oral contract which adversely affects this Conveyance. 3. Gladden Forest is not subject to any bylaw, agreement, mortgage, lien, lease, instrument, order, judgment, decree, or other restriction of any kind or character which would prevent the execution of this Conveyance. 4. Gladden Forest is not engaged in or threatened with any legal action or proceeding, nor is it under any investigation, which prevents the execution of this Conveyance. 5. The person executing this Conveyance on behalf of Gladden Forest has full authority to do so, and no further official action need be taken by Gladden Forest to validate this Conveyance. D -2 6. The facilities conveyed hereunder are all located within property owned by Gladden Forest or utility or other public easements dedicated or to be dedicated by plat or otherwise. IN WITNESS WHEREOF, Gladden Forest has caused this Convey- ance to be executed and delivered this .......... day of ................ 200.. ............................... By..... ............................... By..... ............................... Title: .............. .............. D -3 STATE OF .......... ) ) ss. .......... COUNTY OF ) This instrument was acknowledged before me on .............. 1 200... by .......................................... of ........................... an Arizona limited liability company, on behalf of said corporation'. .... ............................... Notary Public .... ............................... Typed /Printed Name of Notary [NOTARY SEAL] My Commission Expires: ............. D -4 EXHIBIT I TO CONVEYANCE OF SEGMENT OF PROJECT (Insert description of Project /Segment) D -5 EXHIBIT E FORM OF DISCLOSURE STATEMENT GLADDEN FARMS COMMUNITY FACILITIES DISTRICT DISCLOSURE STATEMENT Gladden Forest, LLC, an Arizona limited liability company (the "Developer ") , in conjunction with the Town of Marana, Arizona (the "Town ") , have established a community facilities district ( "CFD ") at the development known as "Gladden Farms." The CFD has financed and, in the future, will finance certain public infrastructure improve- ments, which will result in a property tax liability for each property owner of Gladden Farms resulting from being in the CFD. BACKGROUND On September 30, 1988, the Arizona Community Facilities District Act became effective. This provision in State law was created to allow Arizona municipalities to form CFDs for the primary purpose of financ- ing the acquisition, construction, installation, operation and /or maintenance of public infrastructure improvements, including water and sewer improvements. HOW THE CFD WORKS On February 17, 2004, the Mayor and Council of the Town formed the CFD which includes all of the residential and commercial property in Gladden Farms. An election was held on 2004, at which time the owners of the property within the CFD voted to authorize up to $69,000,000 of ad valorem tax bonds to be issued over time by the CFD to finance the acquisition or construction of water, sewer, road and park improvements. The improvements have been or will be dedicated to the Town after acquisition or construction of such public infrastructure by the CFD. The Town will operate and maintain such improvements. WHAT WILL BE FINANCED? The CFD has been established to finance up to $69,000,000 in public infrastructure improvements within or benefitting Gladden Farms including financing costs related to such improvements. The initial bond issue is expected to be approximately $1,500,000. The proceeds of this bond issue is currently expected to be utilized to finance the engineering, design and construction of a portion of the roadway and utility improvements for Gladden Farms. In addition, it is antici- pated that approximately $21,500,000 in bonds will be issued over the next approximately twenty years for future phases of infrastructure at E -1 Gladden Farms. Thereafter, any remaining bond authorization would be available for issuance to finance other improvements. BENEFITS TO RESIDENTS The bond issues by the CFD will benefit all residents within Gladden Farms by providing public roadway, utility, drainage, park and recrea- tion and other public infrastructure improvements. This benefit was taken into account by the Developer in connection with establishing the price of the lot on which your home is to be located. Each resi- dent of the CFD will participate in the repayment of the bonds in the form of an additional property tax to the current property taxes assessed by other governmental entities. This added tax is currently deductible for purpose of calculating federal and state income taxes. PROPERTY OWNERS' TAX LIABILITY The obligation to retire the bonds will become the responsibility of any property owner in the CFD through the payment of property taxes collected by the Pima County Treasurer in addition to all other property tax payments. (PLEASE NOTE THAT AT THIS TIME NO OTHER AREA WITHIN THE BOUNDARIES OF THE TOWN IS SUBJECT TO A PROPERTY TAX LEVIED BY ANY OTHER COMMUNITY FACILITIES DISTRICT.) Beginning in fiscal year 2004 -05, the CFD levied a not to exceed $2.80 per $100.00 of secondary assessed valuation tax rate to provide for repayment of the bonds and the payment of certain administrative expenses associated therewith and to provide for the expenses of the CFD and of operation and maintaining the infrastructure it finances. Although the level of the tax rate is not limited by law, the tax rate of the CFD is not expected to exceed $2.80 per $100.00 of secondary assessed valuation for as long as the bonds are outstanding. The tax rate will be maintained initially at the $2.80 level by means of agreements with the Developer which require the Developer to provide for the difference above such $2.80 rate. (There can be no guarantee that the Developer will be able to make such payments in the future and, if it cannot, tax rates will be increased to provide for such repayment.) As growth of the tax base occurs within the CFD, it is anticipated that such payments from the Developer will no longer be necessary if debt service is covered by the $2.80 tax rate at which time the District may release the developers from such obligations. IMPACT OF ADDITIONAL CFD PROPERTY TAX The following illustrates the additional annual tax liability imposed by the CFD, based on varying residential values within Gladden Farms and a $2.80 tax rate: E -2 Market Value Estimated Annual of Residence Additional Tax Liability* $150,000 $357 200,000 476 250,000 595 300,000 714 350,000 833 400,000 952 *Assumptions: 1. Market value Ls not the same as full cash value as reported by the County Assessor, which is typically 85% of market value. 2. Assumes residential property assessment ratio will remain at 10 %. 3. Tax amount is computed by multiplying the tax rate per $100 of assessed value by full cash value times the assessment ratio. Additional information regarding the description of infrastructure improvements to be financed by the CFD, bond issue public disclosure documents and other documents and agreements (including a copy of this Disclosure Statement) are available for review in the Town of Marana Town Clerk's office. Your signature below acknowledges that you have read this disclosure document at the time you made your decision to purchase property at Gladden Farms and you signed your purchase contract and that you understand the property you are purchasing will be taxed to pay the CFD bonds described above. .............................. Home Buyer(s) Signature /Date Home Buyer(s) Printed Name(s) Home Buyer(s) Signature /Date ................... Parcel No. ..... Lot No. ..... E -3 EXHIBIT B DESCRIPTION OF PUBLIC INFRASTRUCTURE (a) Sanitary sewage systems, including collection, transport, storage, treatment, dispersal, effluent use and discharge. (b) Drainage and flow control systems, including collec- tion, transport, diversion, storage, detention, retention, dispersal, use and discharge. (c) Water systems for domestic, industrial, irrigation, municipal or fire protection purposes including production, collec- tion, storage, treatment, transport, delivery, connection and disper- sal, but not including facilities for agricultural irrigation purposes unless for the repair or replacement of existing facilities when required by other improvements permitted by this article. (d) Highways, streets, roadways and parking facilities including all areas for vehicular use for travel, ingress, egress and parking. (e) Areas for pedestrian, equestrian, bicycle or other nonmotor vehicle use for travel, ingress, egress and parking. • (f) Pedestrian malls, parks, recreational facilities other than stadiums, and open space areas for the use of members of the public for entertainment, assembly and recreation. (g) Landscaping including earthworks, structures, lakes and other water features, plants, trees and related water delivery systems. (h) Public buildings, public safety facilities and fire protection facilities. (i) Lighting systems. (j) Traffic control systems and devices including signals, controls, markings and signage. (k) School sites and facilities with the consent of the governing board of the school district for which the site or facility is to be acquired, constructed or renovated. (1) Equipment, vehicles, furnishings and other personality related to the items listed hereinabove. • B -1 F. ANN RODRIGO RECORDER P1y DAT: 11458 RECORDED BY: KSO �y `7 PAGE: 326 DEPUTY RECORDER 6D NO. OF PAGES: 6 9383 ROOA SEQUENCE: 20010030095 $0230 �`�. 01/04/2001 PIMA CO CLERK OF THE BOARD X 87 0 12:28 PICKUP PICKUP AMOUNT PAID $ 0.00 RESOLUTION NO. 2001 2 RESOLUTION OF PIMA COUNTY BOARD OF SUPERVISORS; APPROVING AND AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF MARANA WHICH AGREEMENT PROVIDES FOR CODE COMPLIANCE OVER PUBLIC PROPERTY OWNED BY EACH JURISDICTION LOCATED IN THE OTHER'S JURISDICTIONAL BOUNDARIES. WHEREAS, Pima County and the Town of Marana wish to be responsible for the design and construction compliance of their respective buildings to be constructed in each other's jurisdiction -in accordance with adopted building, plumbing, electrical, fire prevention and mechanical codes and to issue their own permits; - NOW, THEREFORE, be it resolved by the Pima County Board of Supervisors as follows: SECTION 1. Pima County shall enter into an intergovernmental agreement with the Town of Marana, attached hereto as Exhibit A and incorporated herein by this reference, for the purpose of retaining regulatory review and compliance over properties owned by each jurisdiction but located in the other's jurisdictional territory. SECTION 2. The Chair of the Pima County Board of Supervisors is hereby authorized and directed to sign the attached Intergovernmental Agreement for the Pima County Board of Supervisors. SECTION 3. The various Pima County officers and employees hereby are authorized and directed to perform all acts necessary and desirable to give effect to this Resolution. RESOLVED this 2nd day of January 2001 ..�.� 4 Sharon Bronson 1/2/01 " Chair, Board of Supervisors r ATT a AS TO FORM: _ r Lon WA5hiaCn ,� Deputy County Attorney Clerk,'$oard.af°Sirviscirs� . CONTRACT N0, 44-.2T/r -- 9 ?JC 3?7 - D�a � AMENDMENT N0, This number must appear on all invoices, correspondence and documents pertainina to this contrast, Intergovernmental Agreement between Pima County and the Town of Marana for Regulation of Public Property Within Each Other's Jurisdictional Territory This Intergovernmental Agreement is entered into pursuant to A.R.S. § 11 -952 by and between Pima County, a body politic and corporate of the State of Arizona, (the "County ") and the Town of Marana, a political subdivision of the State of Arizona, (the "Town ") for the purpose of regulating public property within each other's jurisdictional territory. Recitals A. Town, pursuant to A.R.S. § 9 -240 and Title 9, Chapter 7, Article 1, Arizona Revised Statutes, and County, pursuant to A.R.S. § 11 -861 et seq., are authorized to regulate the quality, type of material and workmanship of all aspects of building construction and to adopt uniform codes regulating such construction. B. County and Town may contract for services and enter into agreements with one another for joint or cooperative action pursuant to A.R.S. § 11 -951, et seq. C. The purpose of this Intergovernmental Agreement is to establish jurisdictional authority for compliance with building and development codes for property owned by each jurisdiction in the other's jurisdictional territory. D. County and Town wish to enter into this Agreement whereby each party will be responsible for the design and construction compliance of its buildings and other structures within the territorial jurisdiction of the other party with the other party's building, plumbing, electrical, fire prevention and mechanical codes and to authorize the issuance of appropriate permits by each party for its buildings and other structures in such instances. NOW, THEREFORE, the County and the Town, pursuant to the above, and in consideration of the matters and things hereinafter set forth, do mutually agree as follows: T IR L s R Agreement 1. Obligations of the Parties. a. Town. The Town shall be responsible for the design and construction compliance with adopted building, plumbing, electrical, fire prevention and mechanical codes of Town buildings and other structures it builds or causes to be built within the territorial jurisdiction of the County. The Town will review and approve the plans and issue the required permits in connection therewith, and perform required inspections. i. Where a fire district formed and existing under the provisions of Title 9, Chapter 9, Article 1, Arizona Revised Statutes, has legally adopted the fire prevention code adopted by the State Fire Marshall, the Town shall submit plans for a building or other structure proposed to be constructed within that fire district to the fire district for review and approval. ii. Where a fire district has not been formed and does not exist under the provisions of Title 9, Chapter 9, Article 1, Arizona Revised Statutes, the Town shall submit plans for a building or other structure proposed to be constructed to the State Fire Marshall for review and approval. b. County. The County shall be responsible for the design and construction compliance with adopted building, plumbing, electrical, fire prevention and mechanical codes of County buildings and other structures it builds or causes to be built within the territorial jurisdiction of the Town. The County will review and approve the plans and issue the required permits in connection therewith, and perform required inspections. i. Where a fire district formed and existing under the provisions of Title 9, Chapter 9, Article 1, Arizona Revised Statutes, has legally adopted the fire prevention code adopted by the State Fire Marshall, the County shall submit plans for a building or other structure proposed to be constructed within that fire district to the fire district for review and approval. ii. Where a fire district has not been formed and does not exist under the provisions of Title 9, Chapter 9, Article 1, Arizona Revised Statutes, the County shall submit plans for a building or other structure proposed to be constructed to the State Fire Marshall for review and approval. 2. Fees. Where this Agreement is applicable, if any fees are required in connection with design (plan review fees) and construction (fees for permits for code activity), they shall be paid to itself by the jurisdiction responsible under this Agreement for compliance. 3. Term. The term of this Intergovernmental Agreement shall be from the date it is recorded with the Pima County Recorder and shall terminate on June 30, 2005, unless sooner terminated or further extended pursuant to the provisions of this Agreement. The parties 2 may renew this Agreement for up to four additional five year periods or any portion thereof. Such extension shall be by formal written amendment executed by the parties. 4. Compliance with All Laws. The Parties shall comply with all federal, state and local laws, rules, regulations, standards and Executive orders, without limitation to those designated within this Agreement. Any changes in the governing laws, rules and regulations during the terms of this Agreement shall apply but do not require an amendment. 5. Responsibility. To the extent permitted by law, each party agrees to be responsible for the acts and omissions of its officers, agents and employees taken pursuant to this Agreement. 6. Non - Discrimination. This Agreement is subject to Executive Order 75 -5, as amended by Executive Order 99 -4, which is incorporated into this Agreement by reference as if set forth in full herein. 7. Remedies. Either party may pursue any remedies provided by law for the breach of this Agreement. No right or remedy is intended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or at equity or by virtue of this Agreement. 8. Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue to be valid and enforceable to the full extent permitted by law. 9. Entire Agreement. This document constitutes the entire agreement between the parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superseded and merged herein. This Agreement may be modified, amended, altered or extended only by a written amendment signed by the parties. 10. Notification. All notices or demands upon any party to this agreement shall be in writing, unless other forms are designated elsewhere, and shall be delivered in person or sent by mail addressed as follows: Town of Marana Pima County Town Manager Development Services Director 13251 N. Lon Adams 201 North Stone Avenue, 1 S' Floor Marana, AZ 85653 Tucson, AZ 85701 11. Termination. , a. Termination for convenience. Either Party may, at any time and without cause, cancel this Agreement by providing 30 days written notice to the other Party of intent to L cancel. 3 b. Termination for Cause. If, in the judgment of either party to this Agreement, the other party does not perform in accordance with the conditions of this Agreement, or is otherwise in default of any provision of this Agreement, the party claiming non- performance or default shall give written notice to the other party specifying the nature of the non - performance or default. If the non - performance or default is not corrected within 30 days after receipt of such written notice, or if the non - performing or defaulting party fails to diligently pursue remedies for corrections which require more than 30 days to complete, the party claiming non - performance or default may terminate this Agreement. c. A.R.S. § 38 -511. This Intergovernmental Agreement is subject to the provisions of A.R.S. § 38 -511. d. Non - Appropriation. Notwithstanding any other provision in this Agreement, this Agreement may be terminated if, for any reason, the Pima County Board of Supervisors or the Marana Town Council does not appropriate sufficient monies for the purpose of maintaining this Agreement. In Witness Whereof, County has caused this Intergovernmental Agreement to be executed by the Chair of its Board of Supervisors, upon resolution of the Board and attested to by the Clerk of the Board and the Town has caused this Intergovernmental Agreement to be executed by the Mayor upon resolution of the Mayor and Council and attested to by its Clerk. ATTEST: TOWN OF MARANA: ` ��tllltl�j� �RPORAtF % � ?ocelyn C ntz r'= _ Mayor, Zzwnk Varana Town Clerk AQ W E ATTEST: r;:��` ���Ul11 ►�� PIMA COUNTY: '• *Y! P" { Lo ' od$sia ` Sharon Bronson, Chair JrdM 0 2OQ1 Clerkthe ,'' , r ' %' Board of Supervisors z z� 4 Intergovernmental Agreement Determination The foregoing Intergovernmental Agreement between the town of Marana and Pima County has been reviewed pursuant to A.R.S. § 11 -952 by the undersigned, who have determined that is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Intergovernmental Agreement represented by the undersigned. TOWN OF MARANA Town Attorney PIMA COUNTY Deputy County Attorney r r 5 TOWN COUNCIL TOWN MEETING OF INFORMATION MARANA DATE: Fe bruary 17, 2004 AGENDA ITEM: IX.B.6 TO: Mayor and Council FROM: Mike Reuwsaat, Town Manager SUBJECT: Resolution No. 2004 -24: First Amendment to Gladden Farms Development Agreement AGENDA Resolution No. 2004 -24: First Amendment to Gladden Farms Development TITLE: Agreement Consideration and possible adoption of a resolution of the Mayor and Council of the Town of Marana, Arizona, approving and authorizing the execution and delivery of a First Amendment to Gladden Farms Development Agreement with Gladden Forest, L.L.C. and declaring an emergency. DISCUSSION: This item should be considered in conjunction with agenda item IX.B.5 on this agenda relating to proposed Resolution No. 2004 -23 authorizing the formation of the Gladden Farms Community Facilities District. During negotiations with Gladden Forest regarding the proposed formation of a community facilities district (CFD) for the Gladden Farms project, several land development issues came under discussion. This proposed land development agreement amendment is one of the products of those negotiations. It addresses the following key issues, among others: Access to Heritage Park. By December 31, 2004, the Developer is required to complete the construction of Gladden Farms Drive and the portion of new "Heritage Park Road" from the southern terminus of Gladden Farms Drive to the property line adjacent to the existing Heritage Park House. Gladden Farms Regional Park. The Developer is now required to begin construction of Gladden Farms Regional Park not later than the issuance of the building permit for the 600 home in Gladden Farms and completed within twelve months. During that same period, Heritage Park Road will be extended from the Heritage Park House to the Gladden Farms Regional Park. The Developer's obligation under the original development agreement to extend Lon Adams Road in time to serve Gladden Farms Regional Park's opening has been eliminated. Initial access to the regional park will be provided by Heritage Park Road. Tangerine Farms Road. The original development agreement obligated the Town to use its best efforts to form an improvement district for the construction of Tangerine Farms Road to connect the Gladden Farms project to the western Gladden Fanns Land DA Bluesheet for 2/17/04 Agenda -1- 2/11/2004 1:41 PM FJC terminus of existing Tangerine Road and to Interstate 10, but left to further negotiation what would occur if the Town does not form the improvement district. With this amendment, the Town remains obligated to use its best efforts to form the improvement district. If it is not formed by January 1, 2006, this amendment obligates the Developer to: • Construct the full four -lane cross - section of Tangerine Farms Road within the Gladden Farms development. • Acquire all necessary right -of -way for and construct a "least possible cost" "temporary" paved extension connecting the existing western terminus of Tangerine Road to the eastern boundary of the Gladden Farms development. The Developer's obligation under the second bullet -point above has four conditions and limitations: 1. The Developer's total outlay for right -of -way acquisition and road construction is capped at $1,000,000. 2. The obligation disappears if the Developer is unable to buy'the necessary right -of -way by negotiation and the Town refuses to acquire it by condemnation. The exercise of eminent domain is a legislative power that cannot be bargained away by contract. This condition is essentially an acknowledgement that the Developer cannot be required to build a road if it cannot get the necessary right -of -way and the Town refuses to use its power of eminent domain to get it. The Developer is required to pay all costs of any condemnation action and judgment, subject to the $1,000,000 cap. 3. The obligation does not arise unless and until the CFD has sold a cumulative total of $3,000,000 in bonds. The decision to sell bonds is another discretionary government act which cannot be bargained away by contract. This assures that the Developer will have received a substantial financial benefit from the CFD before being required to proceed. 4. The obligation does not arise unless and until the Town has adopted a transportation development impact fee to fund major arterial roadways in northwest Marana. The adoption of an ordinance imposing a transportation development impact fee is another legislative act. Since Tangerine Farms Road will provide regional benefits, this provision assures that those who benefit will also share in the cost of building the road. The amendment also provides for reimbursement to the Developer out of transportation development impact fees to the extent the Tangerine Farms Road extension acquires or constructs the ultimate right of way or improvements covered by the impact fee. Other Provisions. Other provisions of the land development agreement amendment include (a) reduction of the overall Gladden Farms unit cap from 2012 to 1850, no more than 243 of which may be south and west of Tangerine Farms Road, (b) prompt processing of rezoning requests, (c) submission of a re -plat to show new roads and remove roads functionally replaced by the new roads, d revision of the proposed phasing schedule to reflect current market conditions, Gladden Farms Land DA Bluesheet for 2/17/04 Agenda -2- 2/11/20041:41 PM FJC and (e) revision of the dispute resolution procedures to conform to those required by the Town's land use liability insurance coverage. ATTACHMENTS: 1. Resolution No. 2004 -24 2. First Amendment to Gladden Farms Development Agreement (Exhibit A to Resolution No. 2004 -24) RECOMMENDATION: Staff recommends approval of Resolution No. 2004 -24, authorizing the execution and delivery of the First Amendment to Gladden Farms Development Agreement with Gladden Forest, L.L.C. and declaring an emergency. SUGGESTED MOTION: I move to approve Resolution No. 2004 -24. Gladden Farms Land DA Bluesheet for 2/17/04 Agenda -3- 2/11/2004 1:41 PM FJC 4 MARANA RESOLUTION NO, 2004 -24 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF DELIVERY A, ARIZ ONA, APPROVING AND AUTHORIZING S THE OPMENTAAGREEMENT WITH FIRST AMENDMENT TO GLAD GLADDEN FOREST, L.L.C. AND DECLARING AN EMERGENCY. WHEREAS, .the Town of Marana is authorized to enter into development agreements pursuant to A.R.S. § 9- 500.05; and WHEREAS, the Mayor and Council of the Town of Marana find that entering into the First Amendment to Gladden Farms Development Agreement with Gladden Forest, L.L.C., concerning the Gladden Farms development project will promote the public health, safety and welfare by facilitating orderly development that pays its fair share of costs toward public services needed to serve the development. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, approving and authorizing the Mayor to est execute t c o ncerning the Amendment ddeo Gladden Farms Development Agreement with Gladden Forest, Farms development project in the form attached as Exhibit this Resolution, arry out the t rm authorizing the Town Manager and Town staff to undertake all other tasks required obligations and objectives of the development agreement. IT IS FURTHER RESOLVED that it is necessary for the preservation of the peace, ly effective; health, and safety of the Town of Marana that this resolution and become lutlon shall e be effective therefore, an emergency is hereby declared to exist immediately upon its passage and adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17' day of February, 2004. Mayor BOBBY SUTTON, JR. ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney FIRST AMENDMENT TO GLADDEN FARMS DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT ( "this Agreement ") is made by and between the TOWN OF MARANA, an Arizona municipal corporation (the "Town "), and GLADDEN FOREST, L.L.C., an Arizona limited liability company ( "Developer "). The Town and the Developer are collectively referred to in this Agreement as the "Parties" and are sometimes individually referred to as the "Part " Y• RECITALS A. The Developer owns the development project commonly known and referred to in this Agreement as `'Gladden Farms," which is the land that is the subject of the document entitled "DEVELOPMENT AGREEMENT BETWEEN TOWN OF MARANA, ARIZONA, FIDELITY NATIONAL TITLE AGENCY, INC. AND GLADDEN FARMS, L.L.C." recorded in the Pima County Recorder's office at Docket 11738, Page 1900 (the "Original Agreement "). B. Developer is the successor in interest to GLADDEN FARMS, L.L.C., a Nevada limited liability company, the Developer under the Original Agreement. C. The proposed development of Gladden Farms is depicted on a final block subdivision plat entitled "Gladden Farms Blocks 1 thru 25 and A thru F," as recorded in the Pima County Recorder's office at Book 55, Page 60 of Maps and Plats (the "Gladden Farms Block Plat "). In this Agreement, the term "Gladden Farms Block" followed by a number refers to the corresponding numbered block as shown on the Gladden Farms Block Plat. D. The Gladden Farms Block Plat dedicated approximately fifty acres to the Town for Tangerine Farms Road right -of -way. E. The Town has acquired all improvements and has received an assignment of lease for certain Arizona State Land Department lands located adjacent to Gladden Farms Blocks 13 and 14, where the Town plans to develop a regional park and museum referred to in this Agreement as the "Heritage Park." F. The Town is scheduled to consider the formation of a community facilities district encompassing Gladden Farms, to finance the construction and/or acquisition of public infrastructure within and benefiting Gladden Farms. This community facilities district is referred to in this Agreement as the "CFD." G. The Parties desire to amend the Original Agreement to clarify and modify its provisions and to resolve additional issues and concerns relating to the development of Gladden Farms. H. The Developer and the Town desire that Gladden Farms be developed in a manner consistent with the Original Agreement, as amplified, clarified, modified and supplemented by this Agreement. I. The Town and the Developer acknowledge that the development of the Property pursuant to this Agreement will result in planning and economic benefits to the Town and its residents. FIRSTAMENDMENTTO GLADDEN FARMS DEVELOPMENTAGmEMENT 21912004 5:23 PM PAGE 1 of 8 J. The Developer has made and by this Agreement will continue to make a substantial commitment of resources for public and private improvements on the Property. K. The Parties understand and acknowledge that this Agreement is a "Development Agreement" within the meaning of, and entered into pursuant to the terms of, A.R.S. § 9- 500.05. L. This Agreement is consistent with the portions of the Town's General Plan applicable to the Property. AGREEMENT Now, THEREFORE, in consideration of the foregoing premises and the mutual promises and agreements set forth in this Agreement, the Parties hereby agree as follows: Article 1. Heritage Park and Gladden Farms Regional Park 1.1. Gladden Farms Drive Not later than December 31, 2004, the Developer shall complete the full construction of Gladden Farms Drive as depicted on the Gladden Farms Block Plat. 1.2. Heritage Park Road Not later than December 31, 2004, the Developer shall, at no cost to the Town: 1.2.1. Dedicate a sixty -foot wide public right -of -way for "Heritage Park Road," extending from the intersection of Tangerine Farms Road and Gladden Farms Drive southward to a point to be agreed upon by the Parties at about the middle of the western boundary of Gladden Farms Block 14, the total right -of -way consisting of approximately one acre of commercially -zoned Gladden Farms Block 14. 1.2.2. Construct Heritage Park Road within the right -of -way described in paragraph 1.2.1 above as a 32 -foot wide, two -lane roadway, with appropriate turning lanes. 1.3. Utilities Not later than December 31, 2004, the Developer shall extend public water main and sewer services, and provide an open trench for "dry" utilities, to a point to be agreed upon by the Parties at about the middle of the western boundary of Gladden Farms Block 14. 1.4. Heritage Park Road Extension The Developer shall construct an additional segment of Heritage Park Road from its southern terminus as constructed pursuant to paragraph 1.2.2 above to the park to be constructed by the Developer pursuant to paragraph 2.5.1 of the Original Agreement, which is referred to in this Agreement as "Gladden Farms Regional Park" and will be located in the land area between Gladden Farms Blocks 15 and 25 and south of Gladden Farms Block 15. This extension of Heritage Park Road shall be on property owned or leased by the Town adjacent to the western and southern boundary of Gladden Farms Block 14 and adjacent to the southern boundary of Gladden Farms Block 15, and may serve as both a park access road and for access to Gladden Farms Blocks 14 and 15. This segment shall be constructed concurrently with the Developer's construction of the improvements to Gladden Farms Regional Park. 1.5. No Additional Developer Contributions to the Heritage Park Except to the extent set forth in this Article 1, the Developer shall not be required to contribute cash, impact fees, land, design work, or construction improvements for the Heritage Park and its facilities. 1.6. Gladden Farms Regional Park Construction Paragraph 2.5.1.1 of the Original Agreement is hereby revised to require the Developer to begin construction of the Gladden Farms Regional Park improvements not later than the issuance of the building permit for the 600 home in Gladden Farms and to complete the construction within twelve months th ereafter. FIRSTAMENDMENTTo GLADDENFARMSDEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE 2 of 8 1.7. Initial Access to Gladden Farms Regional Park The last sentence of paragraph 2.4.3 of the Original Agreement, establishing a construction deadline for the second phase of Lon Adams Road, is hereby deleted. Access to Gladden Farms Regional Park may be initially provided by the Heritage Park Road extension constructed pursuant to paragraph 1.4 above. Article 2. Construction of Tangerine Farms Road 2.1. ImRrovement District As provided in paragraph 2.4.1 of the Original Agreement, the Town will move forward and use its best efforts to form a municipal improvement district ( "ID") with all affected landowners for the construction of Tangerine Farms Road from the I -10 interchange to Moore Road. The ID will finance the construction of the roadway as a four -lane facility within Gladden Farms and as either a four -lane or two -lane facility east of Gladden Farms. The Developer will support the formation of the ID and accept an assessment based on the benefit received by the land it owns within the ID. 2.2. No Improvement District If by January 1, 2006 the Town has been unable to form the ID and issue bonds through it for the improvements described in paragraph 2.1 above: 2.2.1. The Developer shall construct the portion of Tangerine Farms Road located within Gladden Farms in phases in conjunction with the overall project phasing as a four -lane divided roadway. 2.2.2. The Developer shall, to the extent reasonably possible, acquire all necessary right - of -way for and construct a "least possible cost" "temporary" paved Tangerine Farms Road extension from the east boundary of Gladden Farms to the existing western Tangerine Road terminus. 2.2.3. If the Developer is unable to acquire any of the right -of -way referred to in paragraph 2.2.2 above by negotiation, the Town shall consider condemning the necessary right -of -way. If the Town decides in its legislative discretion not to condemn the right -of- way, the Developer's obligations under paragraph 2.2.2 above shall terminate. If the Town condemns the right -of -way, the Developer shall reimburse the Town all costs of the condemnation and shall pay the judgment. 2.2.4. The Developer's cumulative obligations under paragraphs 2.2.2 and 2.2.3 above shall not exceed $1,000,000; provided, however, that Developer shall have no such obligations unless and until the occurrence of both of the following: 2.2.4.1. The CFD has sold a cumulative total of $3,000,000 in bonds. 2.2.4.2. The Town has adopted a transportation development impact fee to fund major arterial roadways in northwest Marana, and has included the cost to acquire and/or construct the ultimate four -lane divided Tangerine Farms Road between Gladden Farms and the existing western Tangerine Road terminus in the improvements to be funded with the development impact fee. 2.2.5. To the extent Developer in the performance of its obligations under paragraph 2.2.2 above either acquires right -of -way or constructs roadway that is consistent with and useable as part of the ultimate four -lane divided Tangerine Farms Road funded with the Town's transportation development impact fee (see paragraph 2.2.4.2 above), the Developer shall be reimbursed out of the transportation development impact fees. At least twenty -five percent of the northwest Marana transportation development impact fees FIRSTAMENDMENT TO GLADDEN FARMS DEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE 3 OF 8 collected by the Town shall be allocated to this reimbursement until the Developer has been reimbursed the full amount payable under this paragraph 2.2.5. 2.2.6. Paragraph 2.4.1 of the Original Agreement is superseded in its entirety by paragraph 2.2 of this Agreement. Article 3. Land Use and Block Plat Revisions 3.1. Cumulative Limitations on Number of Homes A cumulative total of no more than 1850 homes shall be constructed in all of Gladden Farms, and a cumulative total of no more than 243 homes shall be constructed in Gladden Farms Blocks 7, 13, 14, 15 and 25. The word "homes" means single family and multi - family homes and apartment units for purposes of this paragraph. 3.2. Rezoning of Gladden Farms Blocks 7 and 13 The Town's Mayor and Council will consider, and the Town staff will promptly process, a request to rezone Gladden Farms Blocks 7 and 13 from R -16 to R -8, with conditions including that construction shall be limited to single- story homes and that the west 100 feet of Gladden Farms Block 7 shall be a landscaped buffer. 3.3. staff Other Minor Zoning Modifications The Town's shall promptly process other minor zoning changes to revise R -6, R -7 and R -8 parcel locations to maintain consistency of product and provide reasonable neighborhood layout. 3.4. Partial Re- Subdivision The Developer shall submit and, provided it meets all requirements of the Town's Land Development Code and the Original Agreement as modified by this Agreement, the Town shall approve a partial re- subdivision of the Block Plat and/or other appropriate documentation: 3.4.1. Moving the boundary line separating Gladden Farms Blocks 13 and 14 to coincide with the new right -of -way for the Heritage Park Road created pursuant to paragraph 1.2.1 above. 3.4.2. Eliminating the roadway between Gladden Farms Blocks 14 and 15 and showing it as abandoned in favor of the Developer pursuant to A.R.S. § 28 -7203 in exchange for the right -of -way dedicated pursuant to the Block Plat and paragraph 1.2.1 above. 3.4.3. Eliminating Sandario Road south of Moore Road and showing it as abandoned in favor of the Developer pursuant to A.R.S. § 28 -7203 in exchange for the right -of -way dedicated pursuant to the Block Plat and paragraph 1.2.1 above; provided, however, that ownership of the right -of -way shall not pass to the Developer until the Developer has performed its obligations under paragraphs 1. 1, 1.2 and 1.3 above. 3.5. Phasing The Developer shall prepare and the Town shall approve and record appropriate documentation executed by all owners of land in Gladden Farms deleting general note 17 relating to phasing. Future phasing of the development of Gladden Farms is subject to change and may be amended upon the approval of the Development Services Administrator. Article 4. Other Development Issues 4.1. School Sites The two elementary school sites within Gladden Farms are currently planned to be located within Gladden Farms Block 9 and upon Gladden Farms Blocks 18 and 20. Final locations are subject to the approval of the Marana Unified School District and the Town Development Services Administrator. The Developer shall dedicate a total of 20 acres to the Marana Unified School District at no cost. FIRST AMENDMENT To GLADDENFARMS DEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE 4 of 8 4.2. Issuance of Permits The Town will not withhold plat reviews or building permits within Gladden Farms as long as the Developer is performing its obligations under the Original Agreement as modified by this Agreement. If the Developer defaults in the performance of its obligations under the Original Agreement as modified by this Agreement, the Town may withhold reviews and/or building permits from all except Phase One of Gladden Farms (that is, Gladden Farms Blocks 3, 4, 5, 6, 10, 11 and 12) until the default is cured. Nothing in this paragraph shall be interpreted as a limitation of the Parties' remedies under this Agreement. Article 5. Cooperation and Alternative Dispute Resolution. 5.1. Dispute Resolution Procedures Superseded Paragraph 4.3 of the Original Agreement is hereby deleted. 5.2. Default: Remedies If either Party defaults (the "Defaulting Party ") with respect to any of that Party's obligations under this Agreement, the other Party (the "Non- Defaulting Party ") shall be entitled to give written notice in the manner prescribed in paragraph 6.1 below to the Defaulting Party, which notice shall state the nature of the default claimed and make demand that $uch default be corrected. The Defaulting Party shall then have (i) twenty days from the date of the notice within which to correct the default if it can reasonably be corrected by the payment of money, or (ii) thirty days from the date of the notice to cure the default if action other than the payment of money is reasonably required, or if the non - monetary default cannot reasonably be cured within sixty days, then such longer period as may be reasonably required, provided and so long as the cure is promptly commenced within sixty days and thereafter diligently prosecuted to completion. If any default is not cured within the applicable time period set forth in this paragraph, then the Non - Defaulting Party shall be entitled to begin the mediation and arbitration proceedings set forth in paragraphs 5.3 and 5.4 below. The Parties agree that due to the size, nature and scope of the Development, and due to the fact that it may not be practical or possible to restore the Property to its condition prior to Developer's development and improvement work, once implementation of this Agreement has begun, money damages and remedies at law will likely be inadequate and that specific performance will likely be appropriate for the enforcement of this Agreement. This paragraph shall not limit any other rights, remedies, or causes of action that either party may have at law or in equity. 5.3. Mediation If there is a dispute under this Agreement which the Parties cannot resolve between themselves, the Parties agree that there shall be a forty -five day moratorium on arbitration during which time the Parties agree to attempt to settle the dispute by nonbinding mediation before commencement of arbitration. The mediation shall be held under the commercial mediation rules of the American Arbitration Association. The matter in dispute shall be submitted to a mediator mutually selected by Developer and the Town. If the Parties cannot agree upon the selection of a mediator within seven days, then within three days thereafter the Town and the Developer shall request the presiding judge of the Superior Court in and for the County of Pima, State of Arizona, to appoint an independent mediator. The mediator selected shall have at least five years' experience in mediating or arbitrating disputes relating to real estate development. The cost of any such mediation shall be divided equally between the Town and the Developer. The results of the mediation shall be nonbinding on the Parties, and any Party shall be free to initiate arbitration after the moratorium. 5.4. Arbitration After mediation (paragraph 5.3 above) any dispute, controversy, claim or cause of action arising out of or relating to this Agreement shall be settled by submission of the matter by both Parties to binding arbitration in accordance with the rules of the American FIRsTAMENDMENT To GLADDENFARmsDEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE5OF8 Arbitration Association and the Arizona Uniform Arbitration Act, A.R.S. § 12 -501 et seq., and judgment upon the award rendered by the arbitrator(s) may be entered in a court having jurisdiction. Article 6. General Terms and Conditions. 6.1. Notice All notices, filings, consents, approvals and other communications provided for in or given in connection with this Agreement shall be validly given, filed, made, transmitted or served if in writing and delivered personally or sent by registered or certified United States mail, postage prepaid, if to (or to such other addresses as either party hereto may from time to time designate in writing and deliver in a like manner): To the Town: Town of Marana Town Manager 13251 N. Lon Adams Road Marana, Arizona 85653 520- 682 -3401 520- 682 -9026 (Fax) To the Developer: Gladden Forest LLC 333 E. Wetmore Road, Suite 250 Tucson, Arizona 85705 Attn: Dean Wingert, Senior Vice President 520- 888 -3962 520- 888 -3198 (Fax) 6.2. Term This Agreement shall become effective upon its execution by all the Parties and the effective date of the resolution or action of the Town Council approving this Agreement (the "Effective Date "). The term of this Agreement shall begin on the Effective Date and, unless sooner terminated by the mutual consent of the Parties, shall automatically terminate and shall thereafter be void for all purposes upon termination of the Original Agreement pursuant to paragraph 7.1 of the Original Agreement. If the Parties determine that a longer period is necessary for any reason, the term of this Agreement may be extended by written agreement of the Parties. 6.3. Effect on Original Agreement Except as expressly modified in this Agreement, the terms, provisions and obligations of the Original Agreement shall remain in full force and effect. 6.4. Counterparts This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterparts may be removed from such counterparts and such signature pages all attached to a single instrument so that the signatures of all Parties may be physically attached to a single document. 6.5. Good Standing, Authori ty . The Developer represents and warrants to the Town that it is duly formed and validly existing under the laws of the state in which it was formed and is authorized to do business in the state of Arizona. The Town represents and warrants to the Developer that it is an Arizona municipal corporation with authority to enter into this Agreement under applicable state laws. Each Party represents and warrants that the individual executing this RRSTAMENDMENTTo GLADDEN FARMSDEVELOPMENTAGREEMENT 2/9/2004 5:23 PM PAGE 6 of 8 h Agreement on its behalf is authorized and empowered to bind the Party on whose behalf each such individual is signing. 6.6. Severability If any provision of this Agreement is declared void or unenforceable, it shall be severed from the remainder of this Agreement, which shall otherwise remain in full force and effect. If a law or court order prohibits or excuses the Town from undertaking any contractual commitment to perform any act under this Agreement, this Agreement shall remain in full force and effect, but the provision requiring the act shall be deemed to permit the Town to act at its discretion, and if the Town fails to act, the Developer shall be entitled to terminate this Agreement. 6.7. Governing Law This Agreement is entered into in Arizona and shall be construed and interpreted under the laws of Arizona, and the Parties agree that any litigation or arbitration shall take place in Pima County, Arizona. Nothing in the use of the word "litigation" in the preceding sentence shall constitute a waiver of paragraph 5.4, requiring disputes to be resolved by binding arbitration. 6.8. Interpretation This Agreement has been negotiated by the Town and the Developer, and no party shall be deemed to have drafted this Agreement for purposes of construing any portion of this Agreement for or against any party. 6.9. Recordation The Town shall record this Agreement in its entirety in the office of the Pima County Recorder no later than ten days after it has been executed by the Town and the Developer. 6.10. Conflict of Interest This Agreement is subject to A.R.S. § 38 -511, which provides for cancellation of contracts in certain instances involving conflicts of interest. [Remainder of page intentionally left blank.] FIRSTAMENDMENTTO GLADDENFARMSDEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE 7 of 8 e IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last date set forth below their respective signatures. THE TOWN: THE DEVELOPER: THE TOWN OF MARANA, an Arizona GLADDEN FOREST, L.L.C., an Arizona municipal corporation limited liability company By: Its Managing Member, Forest City Land Group, Inc., an Ohio corporation By: Bobby Sutton, Jr., Mayor Date: By ' Dean Wingert, Vice President ATTEST: Date: Jocelyn C. Bronson, Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney STATE OF ARIZONA ) ss County of Pima ) The foregoing instrument was acknowledged before me on by Dean Wingert, Vice President of Forest City Land Group, Inc., an Ohio corporation, Managing Member of GLADDEN FOREST, L.L.C., an Arizona limited liability company, on behalf of the L.L.C. My commission expires: Notary Public FIRSTAMENDMENT To GLADDENFARMSDEVELOPMENTAGREEMENT 21912004 5:23 PM PAGE 8 of 8 TOWN TOWN COUNCIL OF MEETING MARANA INFORMATIO N DATE: February 17, 2004 AGENDA ITEM: IX. B. 9 TO: Mayor and Council FROM: Michael A. Reuwsaat, Town Manager SUBJECT: State Legislative Issues - Discussion/Direction/Action regarding all pending bills before the Legislature DISCUSSION: This item is scheduled for each regular Council Meeting in order to provide an opportunity to discuss any legislative item that might arise during the current session of the State Legislature. Michael Racy will be present to discuss this update. RECOMMENDATION: Upon the request of Council, staff will be pleased to provide recommendations on specific legislative issues. SUGGESTED MOTION: None required. ADMIN/MCHUCE2 /11/20048:24 AM x" 1 V . . T,r,fie' a�. -: .N�4�- '...•. s tw i�* nriRT�. � l4 . y w 6fw. 0i ' �..c os .J �^� 's�` . •t �, — r .t rsr'" '�' r„J'TM isw x T R'4' , x . � �� a."" Issue No 1Januar 2004 •: a5 r ix P ra$� ?x 1, ?`.�9e�z ■ �; l , Z F :''y < 'r t, G� , ,ay'"y" r h�%it� x. . �'i" h t:... t` + t y `ifs' .yir z <_ f ✓,., 7,(r, [c :?�.`. �- . 4, ,•'F 4 ;.� �e� � , ,�:�. > 10, -��' .� '� a '� a,a.. s � ,, � ,i.� � � ,- ,:'; -'- � , ns fs; r r, �` �� �� °Another Legislative Session Begi ; :. t _.. :.. The second regular session of the 46th Legislature convened on Monday of this Another Leg�slatwe Session week with the usual pomp and circumstance appropriate for the occasion. As a Begins central part of the program, the Governor delivered her second State of the State speech'setting out her agenda for tfie upcoming session. As expected, it was x League Prwr�ties for the heavily weighted toward education, particularly early childhood education. Session The Governor in her address also highlighted economic growth as a riorit y. r 4r P 1 Efforts Heating;Up on ma r�copa" Trade with Mexico, developingtheknowledgebasedeconomyandmilitarybase f County Sales Tax Extension _ : , preservation were all identified as critical elements of a healthy economy for Legislatwn _ . 2 Arizona. Land and water preservation was also singled out calling on the Federal • • • Emergency Management Agency to do more to protect Arizona's forests and Having Your Voice Heard at adjacent communities and doubling the inmate crews to continue fire prevention the State Liquor Board ...... 2 activities. There was continued interest expressed on homeland security. Bill to Allow Councils of The Governor is expected to release her budget later today; we understand that no cuts Government to Join AS RS Off to in shared revenues are part of her plan. The projected deficit for the 2005 budget year 16 a Quick i e k Start ................ 3 keeps declining. Latest estimates are below $500 million, perhaps substantially below House Utilities and depending on how state revenues continue to come in during the rest of this fiscal year. Municipalities Hears League Arizona cities and towns were well represented at the opening ceremonies. Legislative Priorities ........3 League President Elaine Scruggs and League Vice President Jim Boles along with Legislative Deadlines city and town officials from Chandler, Mesa, Phoenix, Snowflake and Tempe were Established . e . lines ....... 3 in attendance. (Advance apologies to anyone we missed - it was pretty crowded on that House floor.) Any of you history buffs missed a nostalgic trip down Set Up a Legislative Day! ....3 memory lane by featured speaker Stan Turley, the first person who served as both Speaker of the House and President of the Senate. He is well recognized as one of Common Questions Regarding the most principled people who ever served in the Legislature. the Arizona State Legislature.. 4 There is hope that the session will be relatively short and conclude close to the Successful Strategies for 100 day goal in late April. After last year's marathon session, quickly followed by Working with the State Liquor a lengthy special session, there may not be enough energy left to go much beyond Board Registration Form ....... 5 this self imposed deadline. Especially since this is an election year and they must look toward their primary election come September. League of Arizona League Priorities for the Session At the League Conference in August, you identified five priority resolutions for CitieS AND Towns your League staff to pursue in the 2004 session. They are in order: Legislatn•e Bulletin is published by the Leagu orA. -izona 1. Retention of State Shared Revenues Cities and Towns. Forward your comments or sug¢estions to: 2. Reversal of 2003 Judicial Collection legislation League of Arizona Cities and Towns 3. Presen'ation of Arizona's military facilities 1820 IV. Wishington Street 4. Increasing the number of signatures required to recall a local elected Phoenix,. rizona 85007 official; this will require a constitutional amendment. Phone: 602 - -5786 Fax 602 -253 -3874 5. Increasing the number of signatures needed in a city or town with a E - mail: leaguecmg.state.azus population of less than 50,000 to file a referendum petition. Internet µww.azleague.org CONTINUED ON PAGE 2 ` Ihue No. l January 15, 2004 Page 2 : On state shared revenues, both the Governor and Senate President Ken side more often than the losing side. We will do our best to rep - u nnett have strongly indicated their support for full revenue sharing resent you well or cities and towns with no reductions in the allocations for 2005 A u : proposal to cut sharedevenues coining from a very surprising EI I f'tS H6 a ti n - u source Speaker 'f 'the House Jake Flake He has been one of our, • A if -.l t +¢ �{ Y.. r u Mar�copaCounty Sales Tax strongest supporters but word has it th he wants to keep the urban _, • g revenue sharin at 14.8% instead of the promised 15% We find ~ $ P Extension Le illation little support for his proposal in our conversations with members, his }r x of session this week, a bi is " office has promised us a meeting in the near future with the Speaker W ith the start $ p ush being made to lob by so that we can express our opposition. With him as the go- between, the Legislature to pass a bill enabling the Maricopa County Regional we agreed with legislative leadership in 2002 to a temporary two -year Transportation Plan and sales tax extension to be put to a public reduction to 14.8% with the clear understanding that for 2005 the . vote. On Wednesday, an informational lunch was held on the House percentage would go back to the original 15%. With the additional lawn, which offered municipal officials and staff, as well as other money being contributed this year from judicial collections, there is organizations, businesses and individuals in support of the Regional no reason that the legislative end of this bargain should not be kept Transportation Plan to answer any questions from legislators: As we have communicated to you previously, the judicial collection ._ An informational hearing in the House is scheduled this afternoon transfef was repealed during the Fall special session effective June for HB 2456 Transportation; Excise Tax, Election; which was intro - 30, 2004.. We have to put up with this transfer for the rest of this duced this week by Representative Gary Pierce. Both the Senate fiscal year, but then this poorly conceived idea will be history. and House Transportation Committees are expected to vote on There is almost unanimous agreement that it was a bad idea. identical versions of the bill next week, with the House Transportation Committee meeting at 3:30 pm on Monday, Much work is in store on the military facility preservation issue. January 19th and the Senate Natural Resources and Transportation The Governor did single it out in her remarks, which is positive, Committee meeting at 1:30 pm on Tuesday, January 20th. and is calling for a modest appropriation for 2005 and then higher amounts in future years to help in the effort. Her military task One of the biggest challenges is to get the legislation enacted by A rce has issued its report and we anticipate that many of its rec- February 3rd in order to allow for a May election date. In addi- IWmendations will be debated during the upcoming session. tion, cities and towns are focused on keeping the Transportation On the recall front, the Chairman of the Senate Government Policy Committee plan as it was when approved by MAG. Committee, Senator Jay Tbshraeny has agreed to introduce a proposed The League is strongly supporting this effort. You will recall that it constitutional amendment to increase the signature requirement for was unanimously approved as a League resolution during our poli- recall elections. He is considering making the amendment only applic- cy adoption process at the Annual Conference. able to smaller communities but we are awaiting the final form of the _ proposed amendment. If passed by the Legislature, the proposed H aving Your Voice H eard at amendment would still face statewide voter approval in November. t State Liquor Board The League officers and several other interested local elected officials During this year's League resolution process, there was considerable met with the Governor's office on the referendum issue. You will recall interest and the passage of a resolution supporting reforms to the that the Governor vetoed the bill last year. In discussions, we came up state liquor laws. Chief among the reform interests was increasing with an amendment which might make this more acceptable to the the ability of municipalities to address public safety and neighbor - Governor. N1'e are awaiting final word from her office before proceeding. hood concerns at "problem" establishments. A bill is in the works to A number of other League resolutions have been drafted into legisla- provide municipalities with more of a say in Liquor Board proceed - tion and we will be working hard on them along with the priorities. ings. However, we expect a lot of opposition from the liquor industry. We anticipate that a number of other bills - many directed against In addition, the League is hosting a workshop on how to successful- city interests - will be introduced as the session gets going. Through ly present a recommendation on a liquor license to the State Liquor the Legislative Bulletin we will keep you posted on all of them. Board. Staff from the Phoenix Prosecutor's Office and Police We approach this session with a sense of optimism and hope know - Department will make a presentation on how to best make your ing however that there will be battles to be fought and issues to be case. In spite of having more recommendations for license won and lost. One can only hope that we come out on the winning denials than anyone else in - CONTINUED ON PAGE 3 Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at % -AnA%azleague.org. + 14 14 Issue No. l January 15, 2004 Page 3 e State, Phoenix had a 100% success rate in front of the Board This will be the first of many presentations to this Committee dur- t year These individuals know how to make their city case and ', mg,the legislative year; as�always, we, appreciate Representative �,,&.. .wt * ,$ f!`.. they, have the "s "uccess „rate to prove,t: ZJ� _, =Nelson giving us this oportunity p , r� ?' - 4 1 ” f ..a ; , a g ,.g �r�ppS,,§1 � � i . r` t .r'"..d° arm h :`:� - Several members of the Li uor Board have also ex res'ed an inter •. r° ` attending and coiry ti m " their thou is on what makes a com ��� Le �slatwe Deadlines :. �... gelling case for them and on what type o f In they need g • from mu to ive city town recommendations their Estq b I i s h ed fair and full consideration. As soon as the Board members commit" Each year, the Legislature publishes a calendar noting various to attending, we will notify you of their workshop participation. deadlines. The date for final adjournment is always a question Needless to say, if your municipality has been frustrated by Board mark, but the other dates usually are closely followed. Although deliberations, this workshop would bean invaluable event for you to the final time for adjournment may be adjusted, we anticipate that attend. A registration form is enclosed with the Bulletin. The workshop other deadlines, particularly those on bill preparation and intro- . will be Thursday, January 29th from 10:00 to 12:00 at the League office. duction will be honored. BillJo' AIlo' w,. ounc11s. of Last Day For: Senators to file bill draft requests January 19 Government- -to Join ASRS = Representatives to file bill draft requests January 26 Off. -to a Quick- Start Senators to introduce bills February 2 Thanks to the efforts of Representative John Huppenthal, one more League resolution appears to be on the legislative fast track Representatives to introduce bills February 9 this session. HB 2049 would clarify the law to allow councils of Senate committees to consider Senate bills February 27 governments and other entities created by political subdivisions to and House committees to consider House bills become members of the Arizona State Retirement System (ASRS). W e to a recent Attorney General opinion, some councils of govern- Send budget to Governor March 16 ment (MAG and CAAG) were denied entrance into the ASRS, while Senate committees to consider House bills April 2 similar organizations had been allowed to join over the years. The and House Committees to consider Senate bills bill passed the House Government and Retirement Committee unan- imously and is scheduled for Committee of the Whole this week. Last day for conference committees April 16 House Utilities and Sine Die target date (session ends) April 24 Municipalities Hears League Set Up a legislative Day! Leg islative Priorities We hope many of you will again schedule a legislative day with Kevin Adam, Legislative Director for the League, was invited by your delegation sometime during the 2004 session. Representative John Nelson, Chair of the House Utilities and How do 1 Schedule a Legislative Day? Municipalities Committee to address the first committee meeting of A city or town, either individually or organized by area or ]egisla- the year on the League's legislative agenda. He actually gave us the tive district, designates a coordinator. Have that pe rson give us a entire first agenda to discuss the 2004 Municipal Policy Statement. call. We will assist in the logistics of setting up the meeting. As This also gave Kevin an opportunity to introduce the legislative staff always, the meeting rooms at the League office are available for of the League which includes Eddie Geig ' er, Barbara Dolan, this years your use, and lunch for you and your legislators is on us. Prior to legislative intern Jose Aragon and Rebecca Garcia to the Committee. the meeting with your legislators, League staff will provide your After introductions, Kevin made a presentation on the Municipal group with a briefing on key legislative issues impacting cities and Policy Statement of the League. As exTected, the focus of the pre- towns. This briefing is generally held at 11:30 a.m. with your legis- sentation was on state shared revenue and its importance to local lators invited to join you at noon. Our building is right behind the budgets. The other priority resolutions outlined elsewhere in this Capitol, and legislators find it convenient to walk over during lunch. lletin were also highlighted for Committee members. CONTINUED ON PAGE 4 Leo slative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org . Issue No. l January 15, 2004 Page 4 The invitation to your legislators should be made by you or your The Speaker then decides whether to allow the bill to go to 0 oordinator. The invitation should clearly deliver the message that the Floor for a debate of the entire House membership. This u are coming to the Capitol to meet with them on issues of ,_ floor debate is referred to as Committee of the Whole or - Importance to you and your community. This is a way to person s, COW If a bill makes it out of COW, it is again left to the discretion ` Ally share your feelings on mayor legislative issues as well as to ' of the Speaker if that bill will be placed on a calendar and sched establish�a closer�working relationship with your legislators. uled for the entire 60- member House to vote on bill. This part Please give us a call if you have any questions on setting up a leg- of the process is referred to as "third read." In most cases, ' a sim- islative day for your city town pie majority is all that is needed to pass the bill and transmit it to the Senate where the process is repeated. (Any bill that contains Common Questions an emergency clause or provides for a net increase in State rev- - Regarding enues needs atwo- thirds majority to pass.) In the Senate, the n g g. the Arizona Senate President makes the committee assignments and HB 2001 State Leg Isl enters a similar process in the Senate. When does the legislative session begin and end? If HB 2001 is not changed in any way by the Senate, it is returned to the House and transmitted to the Governor. If the bill was The Legislature is mandated by the State Constitution to begin on the - amended, and the House sponsor does not protest, the bill goes to second Monday January. This year, that date fell on January 13. the House Floor for another vote allowing members to vote for or against the bill as it was amended by the Senate. If the House The answer regarding the end of session is more complicated. sponsor does protest the Senate changes, a Conference Committee Though both the House and Senate have passed rules requiring is scheduled with representation from both the House and Senate session to end by the Saturday following the 100th day, declaration where disagreements over amendments are either worked out or by House and Senate leadership can extend the session by seven the bill dies. Both bills that are amended by the opposite chamber calendar days. To continue beyond this date requires a majority or that survive a Conference Committee must be voted on vote by the House and /or Senate membership. again in the house(s) that is being asked to accept a version 0 ow are bills identified? of the bill that is different than they originally passed. After ' all this, the bill is then transmitted to the Governor. Though an "HB" or an "SB" precedes a bill number to indicate if the legislation originated in the House or Senate, quite often a bill is The Governor has five days after transmission to sign or veto a bill more casually identified by its four -digit bill number only In this if the Legislature is in session and has ten days if it is not. Any bill instance, a reader can know the origin of a bill by noting the first not signed or vetoed in that time period automatically becomes number in the four - number series. All bills beginning with a "1" law. Any bill with an emergency clause or a bill that results in a net are Senate bills and all bills beginning with a "2" are House bills. increase of State revenue becomes effective immediately upon sib Bills also contain a "short title" in the upper right corner. This is a nature of the Governor. All other laws are effective on the "general very brief and general description of the bill's subject matter. Most effective date" which is 90 days after adjournment of the legislative short titles are not much longer than four or five words. session unless they have an effective date included in the bill. What is the process for a bill to become a law? How can I find out the status of a bill? using a fictitious HB 2001 as an example, the bill is assigned to The Legislature offers the Arizona Legislative Information System one or more committees by the Speaker of the House. The bill is (ALIS) online at www.azleg.state.az.us. You can also access ALIS then heard and voted on in each of those committees, including from the League home page at iNiti wazleague.org. This service the Rules Committee which determines by majority vote if the bill allows you to view bills, amendments and committee agendas and appears to be constitutionally sound. From there HB 2001 goes to also can tell you the status of a bill and how legislators voted either party caucuses. In both houses, the Republican caucus and the in a committee or on the floor. The minutes from committee Democratic caucus meet separately to make sure members under- meetings, House and Senate Rules and documents explaining the stand the issues in the bill that they may end up debating and vot- legislative process are also available. If in doubt, pick up the ing on. The caucus also helps the members of leadership to gauge phone and give us a call here at the League and we will be how much support the bill does or does not have. able to update you at any time. Legislative Bulletin is published by League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 - 3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. a LEGISLUIVE BULLETIN Issue No. 2 January 22, 2004 IN THIS ISSUE Fate of Transportation Bill Remains Uncertain Fate of Transportation Bill Legislation authorizing a vote to extend the Maricopa County one half -cent sales Remains Uncertain ........... 1 tax for transportation encountered mixed results this week. There is a strong effort to pass legislation by February 3rd which will enable the extension to be News from the Budget Front ....2 considered on the May election ballot rather than the already very crowded November ballot. In the House, HB2456, which would ratify the plan adopted by Legislation Expected from the Maricopa Association of Governments (MAG) Transportation Policy Governor's Military Facilities Committee, passed the House Transportation Committee unanimously. Task Force .................. 2 Representative Gary Pierce, the committee chairman and bill sponsor, deserves much credit for his leadership on this issue and the level of success that we have More Time for Initiatives; We received so far in the House. Would Like to Hear from You? .. 2 Unfortunately, things are not moving as smoothly in the Senate. For starters, the Resolutions Update ........... 3 Senate version of the bill, SB1074, was assigned to three different committees providing a significant challenge to meeting the February 3rd target date. On Don't Forget to Sign Up for the Tuesday, the bill passed its first committee assignment in Senate Transportation. Liquor Board Training! ........ 3 However,a competing bill,SB1082, also passed the committee by one vote. SB1082 places the extension on the November ballot and separates light rail from Overkill on Bond Elections Will the rest of the regional plan making it a separate ballot question. A similar bill Add Another Hurdle to the had been defeated earlier in the House Transportation Committee. So in addition Process ..................... 3 to facing a challenging timeline, our bill must also compete with another mea- sure in the Senate. Get Your Bulletin Quicker and Save Trees .................. 4 The regional plan in HB2456 and SB1074 was developed through an exhaustive process involving municipal, county, business and other community leaders. New Senator Appointed to The plan provides a balance among the needs of the various areas of the region Replace Senator Jack as well as the different modes of transportation. In the end, while no particular Jackson Sr ................... 4 entity on the MAG Transportation Policy Committee acquired everything that they wanted, the compromise was agreed to unanimously. Picking apart the plan and requiring individual parts of it to be voted on separately unravels the League of entire plan. Parts of the region that would not be directly served by light rail Arizona entire not vote for it if it were a separate item. But the same could be said for all of the other specific projects in the plan. West Valley projects probably would C ities NDTowns not receive a lot of support outside of the West Valley and the same could be said comments or suggestions to: of East Valley Projects. Conversely, if light rail is taken out of the plan, that Ci ties Legislative Bulletin is published s and Towns. Forward your c co the League Arizona leaves very little incentive for Central Valley residents to support the remaining Citie parts of the plan. League of Arizona Cities and Towns 1820 W. Washington Street The bottom line is that the plan must remain intact to be successful. Efforts are Phoenix, ne602- 2 58- 786 ongoing to p ush SB1074 through the Senate. Please contact Phone: 602-258-5786 g g our Senators to p g �' Fax:602- 253 -3874 express your support and don't forget your Representatives either. While the E -mail: league@mg.state.az.us House votes look good now, delays in the Senate could provide an opportunity for Internet: www.azleague.org azleague.org things to change in the House. Issue No. 2 January 22, 2004 Page 2 News from the Budget Front wing aircraft. This will give protections to Luke Auxiliary g 1, Gila Bend Air Force Auxiliary Field, military training The Legislature released a preliminary budget plan on Tuesday routes, heliports and military training and testing ranges. this week and it appears that state shared revenues are untouched. • Recognize and incorporate the work that has already been As with the Governor's plan, which was released last week, the done by the Joint Land Use Studies that have been conducted Legislature's plan returns urban revenue sharing to 15 %, which around Luke AFB and Davis Monthan AFB and potentially, fulfills the Legislature's promise to reduce urban revenue sharing Luke Auxiliary Field 1. to 14.8% for only the 2003 and 2004 budget years. • Repeal the post- action reporting requirement of local juris- dictions in the vicinity of a military airport to the Attorney There is a hit to Highway User Revenues Funds (HURF) carried General's Office and replace it with a compliance check by the over from last year. For the 2004 budget, $50 million in HURF Department of Commerce to ensure any proposed land use funds were diverted to the Department of Public Safety. That changes impacting the high noise and impact areas of the computes to a $14 million loss in HURF funds for cities and military installations are addressed by cities and counties in towns. The Legislature's budget continues this shift; the the general and comprehensive plan processes, respectively. Governor's budget increases it by an additional $30 million. Add a notification to the public report that makes purchasers While both budgets do not touch income tax sharing, the threat of and lessees aware that their property is in the vicinity of a such a cut still remains. Once again, extensive negotiations military installation. between the Governor and the Legislature are expected before a Create the Military Installation Fund to assist military instal - final budget plan is adopted. While the projected deficit is smaller lation preservation and expansion projects at the local level than last year at $300 - $500 million, it is possible that state shared (FY 05 = $1M, FY 06 - 25 = 5% of state income tax attribut- revenue could arise during the negotiations as a potential source able to military personnel and retirees (about S3.5M per to close the gap. year)). As always, please continue to communicate with your legislators League staff is continuing to monitor the legislative recom- regarding the importance of state shared revenue. League staff is mendations of this task force, particularly any new require - monitoring the budget hearings and will keep you posted on any ments that would require general plans to be submitted for new developments. the Department of Commerce for approval. Because this is an ongoing top priority for the League, we will work with the Legislation Expected from Governor, legislators and stakeholders for a version that cities and Governor's Military Facilities towns can support. Task Force More Time for Initiatives;' We The Governor's Office held a briefing for stakeholder groups on Would Like to Hear from You? Tuesday regarding the anticipated legislation from the Military HCR 2009. Initiatives; Filing Dates Facilities Task Force. Citing the threat of another round of base closures, stakeholders were urged to support this legislation to A proposed constitutional amendment has been introduced by keep Arizona's bases open, as well as provide the potential for new Representative Doug Quelland and a host of other legislators to missions for Arizona's military installations. While legislation is change the deadline date for submission of initiatives from the cur- not yet finalized, below are the seven concepts proposed in the bill: rent four months to seven months. If the voters approve this amend- Ensure that cities and counties recognize all military installa- ment, it would apply equally to state as well as local initiatives. • tions in their general and comprehensive plan processes, We are uncertain on how you would like us to respond to this respectively: proposal. Is an earlier filing date beneficial or does it expand the • Expand the ability of counties to better manage growth and process into too much time? If the time frame is too long for development of those areas impacted by military installations. local elections, we may be able to get an amendment to make • Expand the definition for "military airports" to give protec- that time period shorter for local initiatives and leave the longer tions for all of AZ's military facilities, not just military air- time for state initiatives. We would appreciate your com- ports that can accommodate permanently parked, fixed- ments on this one. Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. Issue No. 2 January 22, 2004 Page 3 0 Resolutions Update portation sales tax for an additional 20 years for Maricopa County. p (Resolution #26) A number of League resolutions have already been introduced as legislation to date and some are already on their way through the H 2049 ASRS; Membership; Political Subdivision Entities: Legislature. With the deadline to introduce bills before they count Allows entities created by political subdivisions, such as councils against a member's 7 -bill limit passing last week in the House of of government, to become members of the Arizona State Representatives, there were a great deal of House bills introduced Retirement System. (Resolution #28) so far, while the Senate bills have been slower, as anticipated prior to their February 2nd bill deadline. League staff is currently ana- Several other bills such as recall signatures, municipal recounts, lyzing all of these bills that impact municipalties and the first New arson and criminal traffic violation cost recoupment and liquor Bills Report is expected shortly. Remember the New Bills Report law reform have not been assigned bill numbers yet. We will make is online only (visit azleague.org). In the meantime, following is a them available to you as soon as they are assigned numbers. list of League resolutions already introduced as bills. Don Forget to Sign Up for HCR 2026 Border Cities Expenditure Limitation; Population: the Liquor r Board Training! Allows cities and towns along the border with Mexico to include q one -half of the average daily border crossers in the city or town's As reported in last week's Bulletin, the League will be hosting a population for the purpose of expenditure limits. (Resolution #2) workshop to address cities and towns' concerns regarding dealing H 2139 Counties Military Base Preservation and H 2140 with the State Liquor Board. The workshop will be held on Military Training Routes: Allows counties to preserve real prop- Thursday, January 29th from 10:00 to 12:00 in the League office. It erty surrounding military airports as open space and includes features staff from the Phoenix Prosecutor's Office and the Police military training routes under the definition of military airports. Department, who helped contribute to Phoenix's 100% success (Resolution #10) rate in front of the Board last year. This workshop will be benefi- H 2150 CAWCD; Water Amendments, H 2151 Water; Exempt cial to any city or town that has concerns or is frustrated with pre - Wells and H 2152 Multi- County Water District; Technical senting recommendations to the State Liquor Board. Correction: Makes numerous changes, including several to allow The deadline to register is Friday, January 23rd. A registration municipalities greater flexibility to incorporate water availability form was mailed with last week's Bulletin, or you can access it on into planning activities and conserve water. (Resolution #11) the League's website azleague.org. H 2165 Cities; Towns; Annexation, Noncontiguous Areas: Establishes a process to waive the dimension requirements for annex- Overkill o n Bond Elections ations provided that certain conditions are met. (Resolution #12) Will Add Another H u r d l e H 2164 Municipal Annexation, Petition: Removes the require- ment for annexation petitions to obtain the signatures of owners to Process of personal property in the area proposed to be annexed. HB 2111. Bonds; Publicity Pamphlets (Resolution #13) H 2398 Referendum; Cities and Towns: Allows a city or town Representative John Huppenthal has introduced a bill which will with a population less than 50,000 to use the number of qualified add another step to the bond process for cities and towns - a step voters, rather than the number of people voting in the last munici- that at a minimum is a slap in the face to our own city and town pal election, as the basis for the number of required signatures for attorneys. His bill requires all informational pamphlets in con- a municipal referendum. (Resolution #17) junction with bond elections to be reviewed by the county attor- ney before printing. The county attorney is to review the pam- H 2486 Public Buildings; Technical Registrant Employment: phlet and revise it "as necessary or appropriate" to ensure that the Allows a city or town to consider fees, price, man - hours, or any pamphlet meets the applicable legal requirements and that the other cost information relating to the procurement of technical materials are fair and impartial. There is no time limit for this professional services. (Resolution #20) review nor is there a mechanism proscribed if you disagree with S 1074 and H 2456 Transportation Excise Tax, Election: Allows changes made by the county attorney. an election to be held regarding the extension of the 1 /z cent trans- CONTINUED ON PAGE 4 M Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at wwmazleague.org. Issue No. 2 January 22, 2004 Page 4 1 Pi 3 I 114 The bill also deletes the authority for pro and con arguments in of an election. This bill just makes a cumbersome process such informational pamphlets. It covers all city, town, county, even more cumbersome and places an unnecessary stumbling school, community college bond elections and also levy limit over- block in the time - challenged bond election procedures. rides for counties and community college districts. So where did this bill come from? The Arizona Tax Research Get Your Bulletin Quicker Association (ATRA), a strong business lobby in the State, does not and Save Trees think that you and the other political subdivisions are issuing neu- tral publicity pamphlets and that this will help cure the problem. Over the past few years, the League has reduced the number of In addition to the slap in the face of all city and town attorneys, Bulletins sent via traditional mail by transitioning our Bulletins to bond counsel, according to them, are also not to be trusted. Are email, which allows you to receive your Bulletin quicker, while sav- they perhaps just really upset at the approval rate of bond elec- ing paper and reducing mailing and printing costs for us. Starting tions which cost their members property tax? this week, the League will be sending all Bulletins by email if we have an email address on file for you. However, if you would like This is one of those overkill bills that needs to be stopped early in the to receive your Bulletin through the regular mail, please contact session. The bill first goes to the House Education Committee and then Sandy Morari at the League at (602) 258 -5786 or to the House Ways and Means Committee. We should try to stop it in smorari @mg.state.az.us. Also, please contact Sandy if you receive Committee. The members of those two committees are listed below. the Bulletin via traditional mail, but would like to add your email House Education Committee address to our files to receive the Bulletin electronically. John M. Allen New Senator Appointed ointed to Bill Arnold Tom Boone Replace Senator Jack Olivia Cajero Bedford Jackson Sr. James R. Carruthers Ted Downing Albert Hale, former Navajo Nation President, has been named Linda Gray, Chairman to replace Senator Jack Jackson Sr. who is leaving the Senate John Huppenthal mid -term due to health reasons. Senator Jackson's son, Linda Lopez Representative Jack Jackson Jr., was originally thought to be Ben R. Miranda named as his replacement, but was not selected as a finalist by the Warde Nichols nominating committee. Instead, the other two people nominated Steven B. Yarbrough for the appointment were Tom Gordon and Richie Nez. House Ways and Means Committee Albert Hale is an attorney who lives in Apache County, a resident Ray Barnes qualification since Senator Jackson lived in Apache County. We Ken Clark extend our congratulations to Senator Albert Hale who was Ted Downing sworn in on Wednesday. We look forward to working with him Steve Huffman, Chairman this session. Jack Jackson, Jr. Clancy Jayne Leah Landrum Taylor Tom O'Halleran Doug Quelland Michele Reagan Bob Stump Steven B. Yarbrough There are laws already on the books outlawing government agencies using publicity pamphlets or other means to advocate the outcome Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at wwwazleague.org. ,..�.... _., v im. LEGISLUIVE BULLETIN Issue No. 3 January 29 2004 MAG Transportation Bill - Is the IN THIS ISSUE End in Sight? Consideration of the MAG Transportation Bill to extend the region's one MAG Transportation Bill - Is the half cent transportation sales tax has taken on a very sine die -like quality End in Sight? ................1 as the late night meetings, frayed nerves and strong arm twisting are more characteristic of deliberations at the end of session rather than the FAG Transportation Bill Advances third week! in House ....................2 The debate was extremely intense in the Senate Finance Committee, which Fast Track Continues for Bill to started their hearing on SB1074 and SB1082, the two competing trans - Allow Councils of Government to portation bills, Monday afternoon and technically did not finish the hear - .loin ASRS ................... 2 ing and vote on the bills until late Wednesday night. SB1074 authorizes the MAG Regional Transportation Plan (RTP) to be considered by the vot- Tax Incentives or Shared ers in May. SB1082 separates light rail from the rest of the RTP and calls Revenue - BUT NOT BOTH! ...... 3 for a separate public vote on light rail. The main two points of contention by some committee members were the We Look Forward to Seeing You inclusion of light rail in the plan and the May versus November election at Cities & Towns Day at the date. These two issues held up the bill in the Committee despite the over- Capitol ..................... 3 whelming support in both the House and Senate for legislation that keeps the MAG RTP intact with a May election date. The balance that was Neighborhood Day at the State reached in the plan was developed through a process that was set by the Legislature is Approaching! ..... 3 Legislature last year with the passage of HB2292, and it is unconscionable for members to pick apart and unravel the delicate balance that was The Basics of Arizona's Open reached as a result of the process that they created and is endorsed by Meeting, Conflict of Interest and every Mayor in Maricopa County. Ethics Laws Registration Form ....4 Unfortunately, the six republicans on the Senate Finance Committee, Chairman Dean Martin and fellow Senators Jack Harper, Bob Burns, Marilyn Jarrett, Barbara Leff and Jim Weiers, saw things differently and League of Arizona decided to holdup the process for a week. Finally, on Wednesday night, the Committee passed out the two bills, SB1074 and SB1082, so that the CitieS ANDTow s full Senate can now take up the issue and decide on the details. Senator Legislative Bulletin is published by the League of Arizona Martin amended SB 1074 in committee to change the election date to Cities and Towns. Forward y our comments or suggestions to: November so another vote on the election date will be required on the League of Arizona Cities and Towns Senate Floor. 1820 W..\Nashington Street Phoenix,Arizona 85007 HB2456, the companion bill to SB 1074 in the House, has cleared its Com- Phone:602- 258 -5786 mittee assignments and is read for action b the full House of Fax: 602-253-3874 g y y E -mail: league@mg.state.az.us Representatives. Numerous elected officials and MAG staff spent many Internet: %-Awazleague.org hours at the Capitol this Week to move this - CONTINUED ON PAGE 2 Issue No. 3 January 29, 2004 Page 2 j legislation along and it is likely that they will need to return PAG Transportation Bill for more. While our vote count looks good, we still need a super majority (40 out of 60 in the House and 20 out of 30 in Advances in House the Senate) to pass an emergency clause on the bill to enable HB2507, Regional Transportation Authority; Excise Tax, a May election, and we need to pass it by early next week. passed the House Transportation Committee unanimously While clearing the Senate Finance Committee hurdle was a on Monday. The bill reinstates the authority of the Pima major development, we still have a lot of work to do on this Association of Governments, serving as the regional trans - bill. Please keep the phone calls coming to your Senators portation authority, to call a countywide sales tax election to and Representatives. help fund the region's transportation plan. A special thanks needs to be extended to the elected officials An update to the region's twenty -year transportation plan, who spent a lot of time here this week in support of the bill: including the public input process, will take an estimated 18 MAG Transportation Policy Committee Chair and Tempe months. After completion, it is anticipated -that PAG will call Mayor Neil Giuliano, Phoenix Mayor Phil Gordon, MAG on the county to place a transportation sales tax on the Pima Regional Council Chair and Queen Creek Mayor Wendy County ballot. Feldman -Kerr, League President and Glendale Mayor Elaine Mayor Paul Loomis of Oro Valley, the current PAG Regional Scruggs, Avondale Mayor Ron Drake, Chandler Mayor Boyd Council Chairman, led a delegation of Pima County public Dunn, Youngtown Mayor Bryan Hackbarth, Mesa Mayor and government leaders to the Capitol to testify on the bill. Keno Hawker, Scottsdale Mayor Mary Manross, Litchfield Also, later in the week, Tucson Mayor Bob Walkup made the Park Mayor Woody Thomas, Glendale Vice Mayor Tom Eggleston, Phoenix Councilmember Peggy Bilsten, Peoria journey to the Capitol to lobby legislators. The bill has Councilmember Pat Dennis, and Glendale Councilmember widespread support, particularly from Pima County area legislators led by the bill sponsor, Representative Manny Martinez. Steve Huffman. In addition, many municipal officials from outside the The bill was single assigned to the Transportation Committee Maricopa area called their legislators to demonstrate their in the House so it will be ready for consideration by the full support of the MAG plan. Considering the House Speaker, House of Representatives once it clears the Rules Committee. Senate President and Senate Transportation Chair are all from outside Maricopa, the value of those phone calls can Fast Track Continues for Bill not be overstated. Winslow Mayor and League Vice to Allow Councils of President Jim Boles, Chino Valley Mayor Karen Farm, Thatcher Mayor Bob Rivera, Prescott Mayor Rowle Simmons, Government to Join ASRS Prescott Valley Councilmember Mike Flannery, and the Last Thursday a League resolution was one of the first pieces entire Prescott City Council were particularly active with leg- of legislation passed by the House of Representatives this islators. Also, Arizona Rural Transportation Liaison Joe session, thanks to the efforts of Representative John Hughes' assistance in coordinating the "outside Maricopa" Huppenthal. HB 2049: ASRS; membership; political subdivi lobbying effort was invaluable. sion entities clarifies the law to allow councils of government and other entities created by political subdivisions to become It is impossible to believe that a more thorough process could members of the Arizona State Retirement System (ASRS). have been used to develop the transportation plan which is being presented to legislators. We hope that with this week's The bill passed the House by a vote of 56 ayes,1 nay deadlock being broken, the Legislature will "permit" the vot- (Representative Karen Johnson) and 3 not voting. HB 2049 ers of Maricopa County to vote on the plan in May. now moves to the Senate for consideration. Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. + Issue No. 3 January 29, 2004 Page 3 Tax Incentives or Shared We Look Forward to Seeing Revenue - BUT NOT BOTH! You at" Cities & Towns Day at Senator Jack Harper has once again decided to take a shot at the Capitol state shared revenue by reintroducing his bill from last year The 3rd Annual Cities & Towns Day at the Capitol will be which penalizes cities and towns that provide tax incentives held on Thursday, February 19. All Mayors, Managers, to retail businesses by withholding state shared revenue in Councilmembers, Clerks, Intergovernmental Affairs Officers, amounts equal to the amount of the incentives. SB 1043 will public Information Officers and other key municipal staff are likely be heard in the Senate Finance Committee on Monday welcome to attend this free event designed to collectively afternoon. If enacted, the bill would severely hamper munic- show support for cities and towns at the State Capitol. We ipal development efforts as well as business retention. will hear from legislative leadership at the luncheon program Please contact the committee members to express your on the Senate Lawn that will begin when the Legislature opposition. Senator Harper is the Vice Chairman of the adjourns at approximately noon. Committee. Other committee members are Chairman Dean Each of our State Representatives and Senators has been Martin and Senators Jack Brown, Bob Burns, Ken Cheuvront, invited to attend the event which is a great opportunity to Jorge Garcia, Marilyn Jarrett, Barbara Leff, and Jim Weiers. discuss issues of local concern. You may also want to contact Neighborhood Day at the y our legislators directly and set up a time during the day to meet one -on -one. State Legislature is For a detailed schedule and to RSVP, visit the League's web Approaching! site and download the response form located on the home- Nei page www.azleague.org. Please note that we have made an 1\e�ghborhood leaders are invited to attend a neighborhood legislative program, enjoy a free lunch and tour the House of adjustment to the schedule and have added two legislative briefing opportunities, the first beginning at 10:45 a.m. at Representatives and the State Senate on Thursday, March 4, the League office. If you have any questions about the event, 2004. This annual event is hosted by the cities of Avondale, Chandler, Gilbert, Glendale, Goodyear, Mesa, Phoenix, please contact Margaret Daniels, Communication Specialist Scottsdale, Tempe and Tucson; N.A.I.L.E.M.; and the League. at the League (602) 258 -5786. For more information about this event, please contact Matt Lore, Communication and Education Director at the League (602) 258 -5786. i League of Ar�aoa ;a Cities 7,9bwns Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. Issue No. 3 January 29, 2004 Page 4 j The Basics of Arizona O pen Meeting, C onflict of i Ethics Laws Jessica Gifford Funkhouser, Special Counsel for Elections, Public Records and Open Meetings for the Arizona Attorney General's Office will present this training session for all municipal elected officials and staff. The training will cover the basics of the Open Meeting and Conflict of Interest laws as well as explore ethical issues elected officials and municipal staff face while serving our communities. Who Jessica Gifford Funkhau Speciafi Counsel for Electrons; Public Recorrls;and Open Meetings, Arizona Attciney GeneraC� Office When F nday February 27, 2004 9 i m 1 00 Pt00 y, YYllere, „ League of Arizona'Cid and Towns . 4 1820 W. Washjngtari Street" Phoenix AZ ` r .. Cost $25 per person, far worksp course inatenals Viandrrittnenil breakfast Mail or fax registration to: Deadline e s • League of Arizona Cities and Towns received in writing prior to 1820 West Washington Avenue t Space is limited to 5 p eople, February Phoenix, Arizona 85007 sign up now! Fax: (602) 253-3874 Name: Nickname or name for name tag: I title: CitylTown, , lAgency: Address: City: Zip: Phone: Email: The League does not accept credit cards. You may pay by rash or check and can mail your payment to the League prior to the training, bring your payment with you or we can bill you following the training. If FOR OFFICE USE ONLY P lease ma c I p ayab l e ' League of Arizona Cate received Ariz League of Citie and To wns Arntsunt Paid and mail to: d ies 7 %- 1)Tbwn Check No. 1 Washington Receipt No. Phoenix, Arizona 8500 Received by Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. i INr..,,,. LEGISLUIVE BULLETIN a ' Issue No. 4 February 5, 2004 IN THIS ISSUE MAG Transportation Bill Clears the Legislature MAG Transportation Bill Clears The Legislature sent HB2456, the bill authorizing a public vote for the the Legislature ...............1 extension of the Maricopa County one -half cent transportation sales tax, to the Governor on Wednesday where it is expected to be enacted into law Bad Bill Advances in the Senate ....7 shortly. The bill passed with a two- thirds majority vote in both chambers PAG Transportation Bill Get which triggers an emergency clause that was included in the bill. A big Unanimous Approval by Senate thank you needs to be extended to House Transportation Committee Committee ...................2 Chairman Gary Pierce for his leadership and perseverance on this issue. Representative Pierce kept his resolve despite a tremendous amount of House Ways and Means Clears pressure from opponents to derail the bill. Secondary Property Tax Assessment Bill ............... 2 The inclusion of the emergency clause means that the bill will become effective immediately rather than 90 days after the end of the regular ses- A Good Idea from Representative sion (a date yet to be determined), which more than likely would have been Carruthers ................... 2 problematic for placing the tax extension on the November ballot. As the existing tax is set to expire at the end of 2005, we can afford to lose little Border Cities Resolution Faces time in scheduling a vote on the extension. Also, the immediate effective Slight Delay in House Utilities & Municipalities Committee ....... 3 date will make it much more difficult for legislators to try some future mon- key business through efforts to revisit the issue again later in the session. Another Eminent Domain Bill Despite pressure to separate light rail from the rest of the Maricopa Moves Through the Legislature ...3 Regional Transportation Plan, the final legislation kept the plan intact, as it Van Accessible Parking Bill should. The process, which was established by the Legislature last year, cre- Advances ................... 3 ated a very delicately balanced regional plan which needed to stay intact to be successful. In the end, enough legislators recognized the level of com- Don't Forget: Cities & Towns Day promise reached by all stakeholders and respected the need to not tamper at the Capitol ................ 4 with the plan. Congratulations to all of the Maricopa elected officials and staff who worked tirelessly on this bill over the last month. Appreciation also needs to League be conveyed to all of the non - Maricopa municipal officials who also weighed in with their legislators in support of the bill. There were very few C ieS ANDTow ` s "aye " votes to spare and the support of the non .Maricopa legislators was Legislative Bulletin is published by the League of Arizona vital. Again, congratulations to all. Cities and Towns. Forward your comments or suggestions to: Bad Bill Advances in the Senate League of Arizona Cities and Towns 1120 W. FVashington Street Phoenix, Arizona 85007 Senator Jack Harper s bill, SB 1043, to penalize cities and towns for providing Phone: 602- 258 -5116 tax incentives to retail businesses passed the Senate Finance Committee this E-mail: ue@m gstate.az.us week by a vote of 8 ayes and 1 nay. The Senators that supported this bill in league@mg.state.az.us Internet: w•w%v.azleague.org CONTINUED ON PAGE 2 1 Issue No. 4 February 5, 2004 p age 2 the Senate Finance Committee are Jack Brown, Robert Burns, House Ways and Means Ken Cheuvront, Jorge Luis Garcia, Barbara Leff, James Weiers, Committee Chair Dean Martin and the bill's sponsor Senator Clears- Secondary Jack Harper. Senator Marilyn Jarrett voted against the bill but Property Tax Assessment indicted she would vote for it on the Floor. Bill This legislation would withhold a city or town's state shared A proposal to modify the secondary property tax assessment revenue in the amount of the tax incentive given to the retail ratio by Representative Steve Huffman has passed the House business and would severely impair municipal development Ways and Means Committee this week. This legislation would efforts and business retention. Why this should be a state have the effect of raising the assessed ratio for homeowners matter is not clear as the incentives are provided exclusively and other property tax categories, while reducing the business from local sales taxes. assessment, which would ultimately shift a lot more of the tax The bill now moves to the Senate Commerce Committee. burden from businesses to homeowners. Because of this fact, Please contact the committee members to express your the League opposes this legislation. opposition: Committee Chair Barbara Leff and Vice Chair The bill, HB 2264: Uniform Secondary Property Tax Robert Blendu and Senators Carolyn Allen, Marsha Assessments, passed the House Ways and Means Committee Arzberger, Ken Cheuvront, Gabrielle Giffords, Dean Martin, by a vote of 7 -4. Thanks to Representatives Ken Clark, Ted Victor Soltero and Jay Tibshraeny. Because the bill received Downing, Jack Jackson, Jr. and Leah Landrum - Taylor for vot- so many votes in the Senate Finance Committee, it is impera- ing "no" on this bill. The bill will be considered by the full tive to stop this legislation before it reaches the House of Representatives next. Please call your Senate floor. Representatives to express your concerns on PAG Transportation Bill this legislation. Gets Unanimous Approval A Good Idea from by Senate Committee Representative Carruthers The Senate Natural Resources and Transportation The House Utilities and Municipalities Committee passed HB Committee passed SB 1145: Regional Transportation 2168: State Mandates; Counties; Cities; Towns, a bill that the Authority; Excise Tax this week. This legislation would rein- League is supporting. This legislation would require the state the authority of the Pima Association of Governments, Joint Legislative Budget Committee to prepare a fiscal note serving as the regional transportation authority, to call a for any bill considered by a legislative committee if the bill countywide sales tax election to help fund the region's trans- contains an unfunded mandate to counties, cities or towns. portation plan. The fiscal note would be required to include the amount of Oro Valley Mayor Paul Loomis, the immediate past PAG the unfunded mandate to local governments and an identifi- cation of any other funds that can be used to satisfy Regional Council Chairman, and Tucson Vice Mayor Fred the mandate. Ronstadt led a group of Pima area community leaders tes- tifmg in support of the legislation on Tuesday. The bill has The bill passed the Utilities and Municipalities Committee by received widespread support and passed the Committee by a a vote of 6 -2 (Representatives Ray Barnes and Andy Biggs vote of 7 -0. SB 1145 moves next to the Senate Finance voted no). HB 2168 goes next to the House Appropriations Committee before consideration by the full Senate. The House Committee for a hearing. We would like to thank- companion bill, HB 2507, has already passed its assigned Representative Jim Carruthers for sponsoring this legislation. House committees and is ready for consideration by the full As always, the League is appreciative of his strong sup - House of Representatives. port of local governments. Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. Issue No. 4 February 5, 2004 Page 3 Border Cities Resolution is also being condemned. The preemption is a reaction to a Faces Slight Delay in House recent condemnation action by Maricopa County. The County was attempting to renew a lease for office space being used for Utilities & Municipalities a courthouse. After an impasse on the renewal negotiations Committee occurred, the County opted to condemn its leasehold interest. A court decision rendered last week found the County's action On Wednesday, the House Utilities and Municipalities to be an improper use of eminent domain. Committee considered HCR 2026, which is a League resolu- We are not aware of any municipal efforts to use condemna- tion that would allow border cities to include one -half of the tion in a similar fashion. We are, however, concerned about daily border crossers in their population for the purpose of possible unintended consequences that may occur as a result expenditure limits. Thanks to Frank Neville from the City of of this reaction to the county's action. In fact, Tucson officials Nogales for testifying at the hearing and providing informa- have already identified condemnation as a potential tool for tion on the demands that border crossers place on the City of eliminating nonconforming uses on leased property and may Nogales. The Committee ultimately decided to delay a vote on seek an amendment to the bill. the legislation until next week, as they had questions regard- ing the complex subject of municipal expenditure limits and As you will recall, Senator Tibshraeny was our big champion the home rule voting process. on protecting eminent domain authority last year. As the Senate Government Committee Chairman, he remains a very The current expenditure limit formula was adopted by the influential advocate for local governments in the Legislature. voters as a Constitutional amendment in 1980. Like most As our defender, in what is often a very hostile environment, one - size -fits -all approaches to local government, the expen- he is also very sensitive to alleged abuses of eminent domain diture limits formula has not worked for a variety of by local governments. The introduction of this bill is indica- Arizona's municipalities. While the law allows cities and tive of the level of support that property rights advocates have towns some options such as home rule and permanent base at the Legislature and should serve as a reminder that many adjustment to meet their unique budget situations, even state leaders are looking for any opportunity to justify reign - these options have not been the answer for some communi- ing in our local condemnation authority. Now is clearly not ties. There has been talk of revising the current expenditure the time for municipalities to "push the envelope" on this limits model and there is currently a bill (HB 2245: issue. The bill still needs to go through Senate Rules and Expenditure and Levy Limits; Study) that would study the Caucus before heading to the floor. effectiveness of expenditure and levy limits on counties. The League is monitoring this subject and will be watching out Van Accessible Parking Bill for the interests of municipalities. Advances HCR 2026 is expected to be reconsidered in the House Utilities and Municipalities Committee next week. Alarm bells went off all over Arizona when municipal officials caught wind of the provisions of SB 1047, Physically Disabled Another Eminent Domain Persons; Parking very early in the session. As originally pro- posed, the bill would have required 15% of all public parking Bill Moves Through the spaces to be for the disabled, more than tripling the current Legislature federal requirements. A bill, SB 1197, has been offered by Senator, and former As it turns out, the provisions were nowhere close to the spon- Chandler Mayor, Jay Tibshraeny that would preempt condem- sor s intent. Senator Slade Meads concern is with the number nations of leasehold interests unless the underlying property - CONTINUED ON PAGE 4 Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org. Y yT Issue No. 4 February 5, 2004 Page 4 • of disabled spaces that are van accessible rather than the total number of disabled spaces and he has amended his bill accordingly. Because of the increased width, van acces- • Forget: sible spaces better accommodate individuals needing to get in and out of wheelchairs. While Senator Mead is not aware Cities & Towns Day at the Capitol of any problems with the number of standard disabled Thursday, February spaces, he has received complaints regarding the inadequacy For more information and to RSVP, of van spaces. visit the web site at Under the new provisions passed in the Senate Government I www.azleague.org. Committee, all new public parking facilities owned by the See you there! State or any political subdivision with over 25 spaces will be required to have one more van accessible parking space than is currently required. The additional van accessible space may count towards satisfying the number of disabled spaces can be used by both adjacent parking spaces. In other words, required so there will be no net increase in the total number two disabled parking spaces can share the same aisle located of disabled spaces required. Current federal law requires between them. one out of 25 spaces to be for disabled parking and for one out of eight disabled spaces to be van accessible but always The new requirement would be for future public parking facil- with aminimum of at least one van accessible space for ities only so no retrofitting of existing spaces will be required. every sized lot. Also, the bill will be amended further to exempt public entities that comply with the Universal Parking Design Concept The practical impact is that all publicly owned parking lots (UPDC) from meeting the new standards. The UPDC is a • between 25 and 400 spaces will be required to have two federally approved alternative to the standard Americans instead of one van accessible spaces and all larger lots will with Disabilities Act (ADA) requirements. The aisle width be required to have one more than they currently require. is not a factor with UPDC as all of the disabled parking spaces For lots under 25, the requirement will remain at one. are three feet wider than the standard ADA requirements. The difference between van accessible and other disabled With the amendments and initial feedback that we have parking spaces is the width of the aisle adjacent to the parking received from you, the League is not opposing the bill. If you space. Van accessible requires an eight -foot aisle rather than do have concerns, please let us know: The bill will be sched- the five required for other disabled spaces. For compliance uled for a hearing next week in the Senate Natural Resources purposes, an aisle that meets the disabled parking standards and Transportation Committee. Legislative Bulletin is published by The League of Arizona Cities and Towns, 1820 W. Washington Street, Phoenix, AZ 85007. Phone: (602) 258 -5786. Fax (602) 253 -3874. Email: league @mg.state.az.us. Visit us on the Internet at www.azleague.org.