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04/09/2013 Study Session Agenda Packet
1%6%2%83;2'392'-0 789(=7)77-32 238-')%2(%+)2(% ;'MZMG'IRXIV(VMZI1EVERE%VM^SRE 'SYRGMP'LEQFIVW%TVMP EXSVEJXIV 41 )H,SRIE1E]SV 4EXXM'SQIVJSVH:MGI1E]SV (EZMH&S[IR'SYRGMP1IQFIV ,IVF/EM'SYRGMP1IQFIV 'EVSP1G+SVVE]'SYRGMP1IQFIV .SR4SWX'SYRGMP1IQFIV 6S\ERRI>MIKPIV'SYRGMP1IQFIV 4YVWYERXXS%67j RSXMGIMWLIVIF]KMZIRXSXLIQIQFIVWSJXLI1EVERE8S[R'SYRGMPERHXSXLI KIRIVEPTYFPMGXLEXXLI8S[R'SYRGMP[MPPLSPHEQIIXMRKSTIRXSXLITYFPMGSR%TVMP EXSVEJXIV 41PSGEXIHMRXLI'SYRGMP'LEQFIVWSJXLI1EVERE1YRMGMTEP'SQTPI\;'MZMG'IRXIV(VMZI 1EVERE%VM^SRE %'8-321%=&)8%/)2&=8,)'392'-032%2=-8)10-78)(328,-7%+)2(%6IZMWMSRW MXEPMGW XSXLIEKIRHEGERSGGYVYTXSLSYVWTVMSVXSXLIQIIXMRK6IZMWIHEKIRHEMXIQWETTIEVMR 8LI'SYRGMP'LEQFIVWEVI[LIIPGLEMVERHLERHMGETTIHEGGIWWMFPI4IVWSRW[MXLEHMWEFMPMX]QE]VIUYIWXE VIEWSREFPIEGGSQQSHEXMSRWYGLEWEWMKRPERKYEKIMRXIVTVIXIVF]GSRXEGXMRKXLI8S[R'PIVOEX 6IUYIWXWWLSYPHFIQEHIEWIEVP]EWTSWWMFPIXSEVVERKIXLIEGGSQQSHEXMSR 8LMW2SXMGIERH%KIRHE4SWXIHRSPEXIVXLER1SRHE]%TVMP 41EXXLI1EVERE1YRMGMTEP 'SQTPI\;'MZMG'IRXIV(VMZIXLI1EVERE3TIVEXMSRW'IRXIV;-RE6SEHERHEX [[[QEVEREGSQ [[1070,4311,3286,4423][12][,,][Arial]]SRXLI8S[R'PIVOTEKIYRHIV%KIRHEW1MRYXIWERH [[3261,4311,3950,4423][12][,,][Arial]]6IGIRX%GXMSRW '%008336()6%2(6300'%00 40)(+)3*%00)+-%2')-2:3'%8-32131)283*7-0)2') %4463:%03*%+)2(% '%00838,)49&0-' %XXLMWXMQIER]QIQFIVSJXLITYFPMGMWEPPS[IHXSEHHVIWWXLI8S[R'SYRGMPSRER]MWWYI[MXLMRXLI NYVMWHMGXMSRSJXLI8S[R'SYRGMPI\GITXJSVMXIQWWGLIHYPIHJSVE4YFPMG,IEVMRKEXXLMWQIIXMRK8LI WTIEOIVQE]LEZIYTXSXLVIIQMRYXIWXSWTIEO%R]TIVWSRW[MWLMRKXSEHHVIWWXLI'SYRGMPQYWX GSQTPIXIEWTIEOIVGEVHPSGEXIHSYXWMHIXLI'SYRGMP'LEQFIVWERHHIPMZIVMXXSXLI8S[R'PIVOTVMSVXS XLIGSQQIRGIQIRXSJXLIQIIXMRK-RHMZMHYEPWEHHVIWWMRKEQIIXMRKEXXLI'EPPXSXLI4YFPMG[MPPRSXFI TVSZMHIH[MXLIPIGXVSRMGXIGLRSPSK]GETEFMPMXMIWFI]SRHXLII\MWXMRKZSMGIEQTPMJMGEXMSRERHVIGSVHMRK GETEFMPMXMIWMRXLIJEGMPMXMIWERHXLI8S[R WSZIVLIEHTVSNIGXSVHSGYQIRXVIEHIV4YVWYERXXSXLI%VM^SRE 3TIR1IIXMRK0E[EXXLIGSRGPYWMSRSJ'EPPXSXLI4YFPMGMRHMZMHYEPQIQFIVWSJXLI'SYRGMPQE] Study Session - April 9, 2013 - Page 1 of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j XLI8S[R'SYRGMPQE]ZSXIXSKSMRXSI\IGYXMZIWIWWMSR[LMGL[MPP RSXFISTIRXSXLITYFPMGXSHMWGYWWGIVXEMRQEXXIVW ) )\IGYXMZI7IWWMSRTYVWYERXXS%67j % 'SYRGMPQE]EWOJSV HMWGYWWMSRSVGSRWYPXEXMSRJSVPIKEPEHZMGI[MXLXLI8S[R%XXSVRI]GSRGIVRMRKER]QEXXIV PMWXIHSRXLMWEKIRHE ) )\IGYXMZIWIWWMSRTYVWYERXXS%67j % ERH JSVHMWGYWWMSRSV GSRWYPXEXMSR[MXLXLI8S[RcWEXXSVRI]WERHXSMRWXVYGXXLI8S[RcWVITVIWIRXEXMZIW GSRGIVRMRK XLIPE[WYMXIRXMXPIH4MQE'SYRX]Z8S[RSJ1EVERE1EVMGSTE'SYRX] 7YTIVMSV'SYVX2S': ERH TIRHMRKPIKEPMWWYIWWIXXPIQIRXHMWGYWWMSRW ERHGSRXVEGXRIKSXMEXMSRWVIPEXMRKXSXLIXVERWMXMSRSJ1EVERE[EWXI[EXIVGSPPIGXMSRERH XVIEXQIRXJVSQ4MQE'SYRX]XSXLI8S[RSJ1EVERE ) )\IGYXMZI7IWWMSRTYVWYERXXS%67j % ERH JSVHMWGYWWMSR ERHGSRWYPXEXMSR[MXLXLI8S[R WEXXSVRI]WJSVPIKEPEHZMGIERHXSGSRWMHIVXLI8S[R W TSWMXMSRERHMRWXVYGXMXWVITVIWIRXEXMZIWVIKEVHMRKTIRHMRKRIKSXMEXMSRW[MXLXLI%VM^SRE 7XEXI0ERH(ITEVXQIRXGSRGIVRMRKXLI8SVXSPMXE4VIWIVZI0IEWI %(.39621)28 Study Session - April 9, 2013 - Page 2 of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tudy Session - April 9, 2013 - Page 3 of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tudy Session - April 9, 2013 - Page 4 of 56 ;'-:-'')28)6(6-:)1%6%2%%6->32% 'SYRGMP'LEQFIVW%TVMP 41 1E]SVERH'SYRGMP 8S -XIQ ( *VERO'EWWMH]8S[R%XXSVRI] *VSQ 7XVEXIKMG4PER*SGYW%VIE 'SQQYRMX] 7XVEXIKMG4PER*SGYW%VIE%HHMXMSREP-RJSVQEXMSR -RMXMEXMZI 7IGYVIEPPRIGIWWEV][EXIVVIWSYVGIWERHMRJVEWXVYGXYVI 7XVEKIK]E'SRXMRYIXLIEGUYMWMXMSRSJ[EWXI[EXIVVIWSYVGIW 6IWSPYXMSR2S 6IPEXMRKXS9XMPMXMIW ETTVSZMRKERHEYXLSVM^MRKXLI1E]SVXSI\IGYXI 7YFNIGX XLI-RXIVKSZIVRQIRXEP7IXXPIQIRX%KVIIQIRXFIX[IIR4MQE'SYRX]ERHXLI8S[RSJ1EVERE 6IPEXMRKXSXLI4VSZMWMSRSJ7I[IV7IVZMGI (MWGYWWMSR 8LMWMXIQEYXLSVM^IWWIXXPIQIRXSJXLI[EWXI[EXIVHMWTYXI[MXL4MQE'SYRX]XLIHIXEMPWSJ[LMGLLEZIFIIRXLI WYFNIGXSJI\XIRWMZI8S[R'SYRGMPI\IGYXMZIWIWWMSRWMRXLITEWXWIZIVEPQSRXLW 8LIWIXXPIQIRXEKVIIQIRXTEGOEKIMRGPYHIHMRXLIWIEKIRHEQEXIVMEPWMWXLIJYPPJMREPHVEJX[MXLEPPI\LMFMXW %PPWYFWXERXMZIMWWYIWMRGPYHMRKXLII\XIRXSJHIIHVIWXVMGXMSRWMRJEZSVSJ4MQE'SYRX]SR4EVGIPLEZIFIIR EHHVIWWIHXSXLIJYPPWEXMWJEGXMSRSJ8S[RWXEJJ *MRERGMEP-QTEGX 8LIMRMXMEPXSXEPTVMRGMTEPGSWXXSEGUYMVIXLI1EVERE;EWXI[EXIV6IGPEQEXMSR*EGMPMX]MRGSRRIGXMSR[MXLXLI [EWXI[EXIVWIXXPIQIRX[MPPFIETTVS\MQEXIP]QMPPMSR8LII\EGXEQSYRX[MPPFIHIXIVQMRIHFEWIHSRXLI ]MIPHWSRWXEXIERHPSGEPKSZIVRQIRXWIGYVMXMIWSRI[IIOTVMSVXSGPSWISJIWGVS[3ZIVXLIPSRKXIVQXLIZEPYI SJIJJPYIRXVIGLEVKIMWI\TIGXIHXSJEVI\GIIHXLIGSWXSJS[RMRKERHSTIVEXMRKXLI[EWXI[EXIVYXMPMX] %88%',1)287 2EQI (IWGVMTXMSR 8]TI 6IWSPYXMSRC(3' 6IWSPYXMSR6IWSPYXMSR ;;7IXXPIQIRXEKVIIQIRX)\LMFMX C*MREPC7IXXPIQIRXC-+%C[MXLC)\LMFMXWTHJ 7XEJJ6IGSQQIRHEXMSR 7XEJJVIGSQQIRHWETTVSZEPSJXLI[EWXI[EXIVWIXXPIQIRX[MXL4MQE'SYRX] 7YKKIWXIH1SXMSR -QSZIXSEHSTX6IWSPYXMSRETTVSZMRKERHEYXLSVM^MRKXLI1E]SVXSI\IGYXIXLI[EWXI[EXIV WIXXPIQIRXEKVIIQIRX[MXL4MQE'SYRX] Study Session - April 9, 2013 - Page 5 of 56 MARANA RESOLUTION NO. 2013-032 RELATING TO UTILITIES; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE INTERGOVERNMENTAL SETTLEMENT AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF MARANA RELATING TO THE PROVISION OF SEWER SERVICE WHEREAS the Town of Marana and Pima County have been in litigation since 2007 concerning the provision of sewer service for Marana; and WHEREAS the Town of Marana and Pima County desire a settlement where all remaining litigation issues are resolved, the Town has undisputed ownership and operation of the Marana Wastewater Reclamation Facility and the collection system tributary to it, and designated management areas for each respective party within Pima County are clearly defined and established on a long-term basis, allowing the parties to make and honor necessary long-term financing commitments related to their respective wastewater facilities; and WHEREAS the Mayor and Council of the Town of Marana desire to preserve for the historical record the following facts relating to the Southern Arizona Water Settlements Act (SAWRSA) which are not contained in the Settlement Agreement approved by this resolution: 1. The 1979 intergovernmental agreement between the County and the Town under which the County previously provided sewer service to the Town, referred to as the in recital M of the Settlement Agreement , was approved in its final form by the Mayor and Council of Marana on April 23, 1979. 2. The 1979 Marana/County IGA was a standard Pima County form agreement which it had previously used to enter into 1977 intergovernmental agreements to provide sewer service to the Town of Oro Valley Docket 5632 Page 521) and the City of South Tucson (approved by the Pima County Board of Supervisors on May 16, 1977). 3. The Pima County Board of Supervisors approved the 1979 Marana/County IGA on 4. At the same May 21, 1979 meeting at which the Pima County Board of Supervisors approved the 1979 Marana/County IGA, the Board also approved Pima County Ordinances 1979-65 and 1979-66, both of which were recorded by the Pima County Clerk of the Board on May 31, 1979. 5. On June 5, 1979, the Pima County Board of Supervisors approved an intergovernmental agreement with the City of Tucson relating to the settlement of the then-pending Pima County/City of Tucson water and sewer dispute. The version of the - 1 - Resolution No. 2013-032 4/9/2013 9:18 AM FJC agreement approved by the Board of Supervisors on June 5, 1979 was not accepted by the City of Tucson. Instead, the final 1979 intergovernmental agreement between the City of Settlement Agreement was approved by the Pima County Board of Supervisors on June 26, 1979 and recorded by the Pima County Clerk of the Board on July 3, 1979. 6. The Pima County Clerk of the Board recorded the 1979 Marana/County IGA on August 10, 1979, at Docket 6089, Page 777. 7. The 1979 Marana/County IGA is silent about SAWRSA and does not expressly authorize Pima County to use Town of Marana water resources for the settlement of then- pending water rights claims. WHEREAS the Mayor and Council of the Town of Marana find that this resolution is in the best interests of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the Intergovernmental Settlement Agreement between Pima County and the Town of Marana Relating to the Provision of Sewer Service attached to this resolution as Exhibit A is hereby approved, and the Mayor is authorized to execute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, conditions and objectives of the Settlement Agreement. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, th this 9 day of April, 2013. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney - 2 - Resolution No. 2013-032 4/9/2013 9:18 AM FJC -28)6+3:)621)28%07)880)1)28%+6))1)28&)8;))2 4-1%'3928=%2(8,)83;23*1%6%2% 6)0%8-2+838,)463:-7-323*7);)6 7)6:-') 8LMW-RXIVKSZIVRQIRXEP7IXXPIQIRX%KVIIQIRX XLMWw-+%x MWIRXIVIHMRXSF]ERHFIX[IIR4MQE 'SYRX]EFSH]TSPMXMGERHGSVTSVEXISJXLI7XEXISJ%VM^SRE XLIw'SYRX]x ERHXLI8S[RSJ1EVEREE QYRMGMTEPGSVTSVEXMSR XLIw8S[Rx TYVWYERXXS%67 8LI'SYRX]ERH8S[REVIWSQIXMQIW VIJIVVIHXSGSPPIGXMZIP]MRXLMW-+%EWXLIw4EVXMIWxSVWMRKP]EWEw4EVX]x 6IGMXEPW %8LI'SYRX]ERHXLI8S[RQE]GSRXVEGXJSVWIVZMGIWERHIRXIVMRXSEKVIIQIRXW[MXLSRIERSXLIVJSV NSMRXSVGSSTIVEXMZIEGXMSRTYVWYERXXS%67 IXWIU &8LI'SYRX]S[RWERHSTIVEXIWGIVXEMR[EWXI[EXIVVIGPEQEXMSRJEGMPMXMIWPSGEXIHMR4MQE'SYRX] TYVWYERXXSEYXLSVMX]KVERXIHYRHIV%67MRGPYHMRKXLI6MPPMXS:MWXE;EWXI[EXIV 6IGPEQEXMSR*EGMPMX] XLIw6:;6*x PSGEXIHEX ;IWX6SFMRWSR7XVIIX6MPPMXS%VM^SRE ERH XLI-RE6SEH;EWXI[EXIV6IGPEQEXMSR*EGMPMX] XLIw-6;6*x PSGEXIHEX2SVXL'EWE+VERHI ,MKL[E]8YGWSR%VM^SRE '8LVSYKL.ERYEV]XLI'SYRX]EPWSS[RIHERHSTIVEXIHXLI1EVERE;EWXI[EXIV 6IGPEQEXMSR*EGMPMX] XLIw1;6*x PSGEXIHEX 2SVXL0YGOIXX6SEH1EVERE%VM^SRE ('YVVIRXS[RIVWLMTSJXLI1;6*MWHMWTYXIH )8LI'SYRX]PIEWIWXLIPERHSR[LMGLXLI6:;6*MWWMXYEXIHJVSQ%VM^SRE4SVXPERH'IQIRX 'SQTER]ER%VM^SREGSVTSVEXMSR w0ERHPSVHx TYVWYERXXSXLEXGIVXEMRPIEWIEXXEGLIHXSXLMW-+% EW)\LMFMXHEXIH.YRIERHVIRI[IH.YRI XLIw6:;6*0IEWIx *8LI'SYRX]MWXLI[EWXI[EXIVQEREKIQIRXEKIRG]MHIRXMJMIHMRXLI4MQE%WWSGMEXMSRSJ +SZIVRQIRXWvw1EVGL%VIE[MHI;EXIV5YEPMX]1EREKIQIRX4PERx XLIw4%+ 4PERx EW XLI(IWMKREXIH1EREKIQIRX%KIRG] w(1%x JSVEPPEVIEWSJ4MQE'SYRX]I\GPYHMRKXVMFEPPERHW ERHI\GPYHMRKXLIEVIEMHIRXMJMIHMRXLI4%+ 4PEREWXLI8S[RSJ7ELYEVMXE(IWMKREXIH 1EREKIQIRX%VIE +8LI'SYRX]MWWYFNIGXXSX[S-RXIVKSZIVRQIRXEP%KVIIQIRXW[MXLXLI'MX]SJ8YGWSR XLIw'MX]x XLEXHIJMRIGSRXVSPSJIJJPYIRXTVSHYGIHEX'SYRX][EWXI[EXIVXVIEXQIRXJEGMPMXMIWEWFIX[IIRXLI 'SYRX]ERHXLI'MX] ,-R XLI'MX]ERH'SYRX]IRXIVIHMRXSER-RXIVKSZIVRQIRXEP%KVIIQIRX XLIw'MX]'SYRX] -+%x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tudy Session - 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April 9, 2013 - Page 13 of 56 LEZIJYPPEYXLSVMX]XSIRJSVGIMXWWI[IVVIPEXIHSVHMRERGIWEWXLI]RS[ERHQE]I\MWX [MXLMRXLSWIEVIEWSJXLI8S[RXLEXEVIEPWS[MXLMRXLI'SYRX]vW(1% 8S[R8LI8S[R[MPPTVSZMHIWI[EKIGSRZI]ERGIERHXVIEXQIRXWIVZMGIXSEPP TVSTIVX][MXLMRMXW(1%ERH[MPPWIXERHGSPPIGXWI[IVGSRRIGXMSRERHWI[IVJIIWJSV GYWXSQIVWWIVZIHF]XLI8S[R8LI8S[R[MPPLEZIJYPPEYXLSVMX]XSIRJSVGIMXWWI[IV VIPEXIHSVHMRERGIWEWXLI]RS[ERHQE]I\MWX[MXLMRXLSWIEVIEWSJYRMRGSVTSVEXIH 'SYRX]XLEXEVIEPWS[MXLMRXLI8S[RvW(1% 7IVZMGIMR&SYRHEV]%VIEW8LI8S[RERHXLI'SYRX][MPPGSSTIVEXMZIP]TPERJSV TVSZMWMSRSJWI[IVWIVZMGIMREVIEWRIEVXLIMVGSQQSR(1%FSYRHEV]8LI8S[RERH XLI'SYRX]QE]EKVIIXSWIIOGLERKIWXS(1%FSYRHEVMIWSVMRXLIEPXIVREXMZIF] MRXIVKSZIVRQIRXEPEKVIIQIRXEKVIIXSTVSZMHIMRXIV(1%WI[IVWIVZMGI[LIRWIVZMGI IJJMGMIRG]FEWIHSRIRKMRIIVMRKGVMXIVMENYWXMJMIWWYGLEGXMSR 7EKYEVS&PSSQ8LIEVIEVIJIVVIHXSMRXLMW-+%EWw7EKYEVS&PSSQx FIMRKXLI GYVVIRXERHJYXYVIHIZIPSTQIRXSJXLIPERHEVIEHITMGXIHMRXLIFPSGOWYFHMZMWMSRTPEX XMXPIHw7EKYEVS7TVMRKW&PSGOWXLVY %XLVY(ERH0SXWXLVY %ERH&x VIGSVHIHMRXLI4MQE'SYRX]6IGSVHIVvWSJJMGIEX&SSO SJ1ETWERH4PEXW4EKI MWMRGPYHIHMRXLI'SYRX]vW(1%YRXMPWYGLXMQIEWXLI8S[REHHWWI[IVPMRIW IREFPMRKMXXSTVSZMHIWIVZMGIXS7EKYEVS&PSSQ8LI4EVXMIWEKVIIXSXLIMRGPYWMSRSJE TVSZMWMSRMRXLI8S[RvW4%+ 4PEREQIRHQIRXXLEXEYXSQEXMGEPP]XVERWJIVWXLI 7EKYEVS&PSSQMRXSXLI8S[RvW(1%SRGIXLI8S[RMWGETEFPISJTVSZMHMRKWI[IV WIVZMGIXS7EKYEVS&PSSQ (1%)\TERWMSR*PS[(MZIVWMSR3XLIVXLEREWWTIGMJMGEPP]WIXJSVXLMRXLMW-+% RIMXLIV4EVX][MPPWIIOXSI\TERHMXW(1%MRXSXLISXLIVvW(1%SVHMZIVXI\MWXMRKSV JYXYVI[EWXI[EXIVJPS[WJVSQXLISXLIVvW(1% )JJPYIRXJVSQ1EVERE9XMPMXMIW(ITEVXQIRX(MWGLEVKIWXS-6;6*'SYRX][MPPWYTTSVXXLI 8S[RvWIJJSVXWXSKIXFIRIJMGMEPYWIGSRWMWXIRX[MXLXLII\MWXMRK-+%WFIX[IIRXLI'MX]SJ 8YGWSRERH3VS:EPPI]ERHFIX[IIR'MX]SJ8YGWSRERH1IXVSTSPMXER(SQIWXMG;EXIV -QTVSZIQIRX(MWXVMGX XLIw)JJPYIRX-+%Wx SJEWQYGLIJJPYIRXEWTSWWMFPIKIRIVEXIHJVSQ 1EVERE9XMPMXMIW(ITEVXQIRXTSXEFPI[EXIVHIPMZIVMIWYPXMQEXIP]HMWGLEVKIHXSXLI-6;6* TVSZMHIHLS[IZIVXLEXEPPWYGL[EXIVMWWYFNIGXXSHIHYGXMSRWJSV7SYXLIVR%VM^SRE;EXIV 6MKLXW7IXXPIQIRX%GX 7%;67% TYVTSWIWXLI'SRWIVZEXMSR)JJPYIRX4SSPERHJSVXLI 'SYRX]vWXIRTIVGIRXWLEVIGSRWMWXIRX[MXLXLI)JJPYIRX-+%W %44%QIRHQIRX8LI8S[R[MPPEGGITXERHEGXMREGGSVHERGI[MXLXLI'SYRX]vWETTVSZIH %UYMJIV4VSXIGXMSR4IVQMX %44 EQIRHQIRXTIRHMRK[MXL%()5SVVIEGLEWYMXEFPI EPXIVREXMZIEVVERKIQIRX[MXL%()5XSI\TERHXLI1;6*WSEW[MXLPMXXPISVRSHIPE]XSOIIT YT[MXLXLIQEVOIXHIQERHJSVRI[GSRRIGXMSRWXSXLI1;6*8LI'SYRX]LIVIF]EWWMKRWXS XLI8S[REPPXLI'SYRX]vWVMKLXWMRERHXSXLITPERWTVITEVIHJSVXLI'SYRX]F]7XERXIG 'SRWYPXMRK7IVZMGIW-RGTYVWYERXXS'SYRX]'SRXVEGXRS WYFNIGXXS7XERXIGvW ETTVSZEPSJWYGLEWWMKRQIRX8LI'SYRX]KMZIWRS[EVVERXMIWSJER]OMRH[MXLVIWTIGXXSXLIWI TPERW )JJPYIRXJVSQ1EVERE9XMPMX](ITEVXQIRXHMWGLEVKIWXS1;6*8LI'SYRX]EGORS[PIHKIW XLEXXLI8S[REWWIVXWXLEXMXMWRSXFSYRHF]XLIXIVQWSJXLI'MX]'SYRX]-+%ERHXLI 7YTTPIQIRXEP-+%VIKEVHMRK7%;67%GSRXVMFYXMSRWJVSQ1;6*IJJPYIRX8LI8S[R[MPP MRHIQRMJ]HIJIRHERHLSPHLEVQPIWW'SYRX]JVSQEPPPIKEPEGXMSRWF]XLMVHTEVXMIW MRGPYHMRK Study Session - April 9, 2013 - Page 14 of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v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vWSTIVEXMSRSJXLI1;6*ERHXLI6:;6*8LI8S[REKVIIWXSMRHIQRMJ]ERHLSPH XLI'SYRX]ERHMXWEKIRXWSJJMGMEPWERHIQTPS]IIWLEVQPIWWJVSQERHEKEMRWXER]I\TIRWIW GPEMQWPMEFMPMX]ERHHEQEKIWXLEXEVIWYJJIVIHSJMRGYVVIHF]XLI'SYRX]EWEVIWYPXSJRIKPMKIRX SVMRXIRXMSREPP][VSRKJYPEGXWSJXLI8S[RSVE8S[RIQTPS]IIEKIRXSVGSRXVEGXSV[MXL VIWTIGXXSERHHYVMRKXLI8S[RvWSTIVEXMSRSJXLI1;6*ERHXLI6:;6* 'SRJPMGXSJ-RXIVIWX8LMWGSRXVEGXMWWYFNIGXXSGERGIPPEXMSRJSVGSRJPMGXSJMRXIVIWXTYVWYERXXS %67 XLITIVXMRIRXTVSZMWMSRWSJ[LMGLEVIMRGSVTSVEXIHLIVIMRF]VIJIVIRGI ;SVOIVvW'SQTIRWEXMSR)EGL4EVX][MPPGSQTP][MXLXLIRSXMGISJ%67 ) *SV TYVTSWIWSJ%67MVVIWTIGXMZISJXLISTIVEXMSRWTVSXSGSPMRTPEGIIEGL4EVX]MW WSPIP]VIWTSRWMFPIJSVXLITE]QIRXSJ;SVOIVvW'SQTIRWEXMSRFIRIJMXWJSVMXWIQTPS]IIW 2S.SMRX:IRXYVI-XMWRSXMRXIRHIHF]XLMW-+%XSERHRSXLMRKGSRXEMRIHMRXLMW-+%[MPPFI GSRWXVYIHXSGVIEXIER]TEVXRIVWLMTNSMRXZIRXYVISVIQTPS]QIRXVIPEXMSRWLMTFIX[IIRXLI 4EVXMIWSVGVIEXIER]IQTPS]IVIQTPS]IIVIPEXMSRWLMTFIX[IIRXLI'SYRX]ERHER]8S[R IQTPS]IIWSVFIX[IIRXLI8S[RERHER]'SYRX]IQTPS]IIW3XLIVXLEREWWTIGMJMGEPP]WIX JSVXLMRTEVEKVETL EFSZIRIMXLIVTEVX]MWPMEFPIJSVER]HIFXWEGGSYRXWSFPMKEXMSRWSVSXLIV PMEFMPMXMIW[LEXWSIZIVSJXLISXLIVMRGPYHMRK [MXLSYXPMQMXEXMSR XLISXLIV4EVX]vWSFPMKEXMSRXS [MXLLSPH7SGMEP7IGYVMX]ERHMRGSQIXE\IWJSVMXWIPJSVER]SJMXWIQTPS]IIW Study Session - April 9, 2013 - Page 15 of 56 2S8LMVH4EVX]&IRIJMGMEVMIW2SXLMRKMRXLMW-+%MWMRXIRHIHXSGVIEXIHYXMIWSVSFPMKEXMSRWXS SVVMKLXWMRXLMVHTEVXMIWRSX4EVXMIWXSXLMW-+%SVEJJIGXXLIPIKEPPMEFMPMX]SJIMXLIV4EVX]XSXLMW -+%F]MQTSWMRKER]WXERHEVHSJGEVI[MXLVIWTIGXXSXLIQEMRXIRERGISJTYFPMGJEGMPMXMIW HMJJIVIRXJVSQXLIWXERHEVHSJGEVIMQTSWIHF]PE[ 2SXMGI%R]RSXMGIVIUYMVIHSVTIVQMXXIHXSFIKMZIRYRHIVXLMW-+%QYWXFIMR[VMXMRKERH WIVZIHF]HIPMZIV]SVF]GIVXMJMIHQEMPYTSRXLISXLIV4EVX]EWJSPPS[W SVEXWYGLSXLIV EHHVIWWEWQE]FIMHIRXMJMIHF]E4EVX]MR[VMXMRKXSXLISXLIV4EVX] 'SYRX] 8S[R (MVIGXSV6;6((MVIGXSV1EVERE9XMPMXMIW(ITEVXQIRX XL 2SVXL7XSRI *PSSV;IWX-RE6SEH 8YGWSR%VM^SRE 1EVERE%VM^SRE ;MXLGSTMIWXS ;MXLGSTMIWXS 'SYRX]%HQMRMWXVEXSV1EVERE8S[R1EREKIV XL ;IWX'SRKVIWW7XVIIX*PSSV;IWX'MZMG'IRXIV(VMZI 8YGWSR%VM^SRE 1EVERE%VM^SRE ERHERH 'PIVOSJXLI&SEVH1EVERE8S[R'PIVO XL ;IWX'SRKVIWW*PSSV;IWX'MZMG'IRXIV(VMZI 8YGWSR%VM^SRE 1EVERE%VM^SRE )RXMVI%KVIIQIRX8LMW-+%GSRWXMXYXIWXLIIRXMVIEKVIIQIRXFIX[IIRXLI4EVXMIWTIVXEMRMRK XSXLIWYFNIGXQEXXIVLIVISJERHEPPTVMSVSVGSRXIQTSVERISYWEKVIIQIRXWERH YRHIVWXERHMRKWSVEPSV[VMXXIREVILIVIF]WYTIVWIHIHERHQIVKIHLIVIMR8LMW-+%QE]RSX FIQSHMJMIHEQIRHIHEPXIVIHSVI\XIRHIHI\GITXXLVSYKLE[VMXXIREQIRHQIRXWMKRIHF]XLI 4EVXMIW ?6)1%-2()63*4%+)-28)28-32%00=&0%2/ 7-+2%896)4%+)*3003;7A Study Session - April 9, 2013 - Page 16 of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tudy Session - April 9, 2013 - Page 17 of 56 Study Session - April 9, 2013 - Page 18 of 56 Study Session - April 9, 2013 - Page 19 of 56 Study Session - April 9, 2013 - Page 20 of 56 Study Session - April 9, 2013 - Page 21 of 56 Study Session - April 9, 2013 - Page 22 of 56 Study Session - April 9, 2013 - Page 23 of 56 Study Session - April 9, 2013 - Page 25 of 56 Study Session - April 9, 2013 - Page 26 of 56 Study Session - April 9, 2013 - Page 27 of 56 Study Session - April 9, 2013 - Page 28 of 56 Study Session - April 9, 2013 - Page 29 of 56 Study Session - April 9, 2013 - Page 30 of 56 Study Session - April 9, 2013 - Page 31 of 56 Study Session - April 9, 2013 - Page 32 of 56 Study Session - April 9, 2013 - Page 33 of 56 Study Session - April 9, 2013 - Page 34 of 56 Study Session - April 9, 2013 - Page 35 of 56 Study Session - April 9, 2013 - Page 36 of 56 )\LMFMX 8S7IXXPIQIRX%KVIIQIRXFIX[IIR8S[RSJ1EVEREERH4MQE'SYRX] *SVQSJ(IIH ;LIRVIGSVHIHVIXYVRXS CCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCC 74)'-%0;%66%28=())( ?)\IQTXJVSQ%JJMHEZMXSJ:EPYI6IUYMVIQIRXTYVWYERXXS%67 % A 'SRZI]ERGI-RI\GLERKIJSVZEPYEFPIGSRWMHIVEXMSR4MQE'SYRX]ETSPMXMGEPWYFHMZMWMSRSJ XLI7XEXISJ%VM^SRE w'SYRX]x WYFNIGXXSXLIPMQMXEXMSRWERHVIWXVMGXMSRWWIXJSVXLMRXLMW (IIHLIVIF]KVERXWERHGSRZI]WXSXLI8S[RSJ1EVEREER%VM^SREQYRMGMTEPGSVTSVEXMSR w8S[Rx XLIJSPPS[MRKVIEPTVSTIVX] GSPPIGXMZIP]XLIw4VSTIVX]x E8LIVIEPTVSTIVX]HIWGVMFIHSR)\LMFMX%EW4EVGIPWERH F8LI'SYRX]vWMRXIVIWXMRX[SVIKYPEXSV]WIXFEGOIEWIQIRXWJSVXLIFIRIJMXSJ4EVGIPWERH [LMGLEVIVIGSVHIHMRXLISJJMGMEPVIGSVHWSJXLI4MQE'SYRX]6IGSVHIVMR(SGOIX EX4EKI ERHMR(SGOIX EX4EKIVIWTIGXMZIP] G%RIKEXMZIIEWIQIRXJSVXLIFIRIJMXSJ4EVGIPWERHSZIVXLIVIEPTVSTIVX]HIWGVMFIHSR )\LMFMX%EW4EVGIPEWTVSZMHIHMR7IGXMSRFIPS[ XLIw7IXFEGO;EMZIVx H%RIEWIQIRXJSVHVEMREKITYVTSWIWSZIVETSVXMSRSJ4EVGIPXLEXMWHIWGVMFIHMR)\LMFMX% EW4EVGIPEWTVSZMHIHMR7IGXMSRFIPS[ XLIw(VEMREKI)EWIQIRXx +IRIVEP)\GITXMSRW8LMWGSRZI]ERGIMWQEHIWYFNIGXXS E%PPGSZIRERXWGSRHMXMSRWVIWXVMGXMSRWVIWIVZEXMSRWIEWIQIRXWERHSXLIVQEXXIVWSJVIGSVH SVXS[LMGLVIJIVIRGIMWQEHIMRXLITYFPMGVIGSVHWSVSJ[LMGLXLI8S[RLEWEGXYEP ORS[PIHKI F%R]ERHEPPQEXXIVWXLEXEREGGYVEXIWYVZI]ERHTL]WMGEPMRWTIGXMSRSJXLI4VSTIVX][SYPH VIZIEP G%R]QEXXIVWGVIEXIHF]SV[MXLXLI[VMXXIRGSRWIRXSJ8S[RSVEVMWMRKEWEVIWYPXSJER] EGXMZMXMIWSJ8S[RVIKEVHMRKXLI4VSTIVX] 4EKISJ Study Session - April 9, 2013 - Page 37 of 56 9WI6IWXVMGXMSRWSR4EVGIP4EVGIPMWFIMRKGSRZI]IHMRJIIWYFNIGXXSXLIJSPPS[MRK TIVTIXYEPVIWXVMGXMSRSRMXWYWI[LMGLFIRIJMXWERHMWIRJSVGIEFPIF]XLI'SYRX] w9WI 6IWXVMGXMSRx E4IVQMXXIH9WIW4EVGIPQE]FIYWIHF]8S[RJSVERHJSV M EGXMZMXMIWRIGIWWEV] SRP] ERHERGMPPEV]XSXLISTIVEXMSRSJE[EWXI[EXIVXVIEXQIRXERHVIGPEQEXMSRJEGMPMX]SR4EVGIP MRGPYHMRKWTIGMJMGEPP]XLISTIVEXMSRSJIJJPYIRXVIGLEVKIERHVIGSZIV]YRMXW I\GITXEW WTIGMJMGEPP]TVSLMFMXIHFIPS[ MM EKVMGYPXYVEPYWIW ERH MMM YWIWTIVQMXXIHF]XLI'SYRX]vW *PSSHTPEMR1EREKIQIRX3VHMRERGI8MXPISJXLI4MQE'SYRX]'SHIJSVTVSTIVX][MXLMR XLIJPSSHTPEMRSVwJPSSH[E]JVMRKIEVIEx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vWYWISJ4EVGIP-XMWFIMRKKVERXIHJSVXLIWSPI TYVTSWISJ[EMZMRKXLIJSSXVIKYPEXSV]WIXFEGOVIUYMVIQIRXERHEGGSQQSHEXMRKXLI STIVEXMSRSR4EVGIPSJE[EWXI[EXIVXVIEXQIRXJEGMPMX]XLEXQE]XVIEXEREZIVEKIJPS[SJ SVQSVIKEPPSRWSJ[EWXI[EXIVTIVHE]EWVIUYMVIHF]%VM^SRE%HQMRMWXVEXMZI'SHI 8MXPI 'LETXIV (ITEVXQIRXSJ)RZMVSRQIRXEP5YEPMX]6 & - 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April 9, 2013 - Page 38 of 56 0MQMXIH;EVVERX]'SYRX][EVVERXWXMXPIXSXLI4VSTIVX]SRP]EKEMRWXEGXWSJ'SYRX]ERHRS SXLIVWYFNIGXXSEPPQEXXIVWHIWGVMFIHEFSZI -2;-82)77;,)6)3*XLI'SYRX]LEWI\IGYXIHERHXLI8S[RLEWEGGITXIHXLMW 7TIGMEP;EVVERX](IIHEWSJXLIHEXIWWIXJSVXLFIPS[ 4-1%'3928=ETSPMXMGEPWYFHMZMWMSRSJXLI7XEXISJ %VM^SRE &] 2EQI 8MXPI (%8) ?WMKREXYVIFPSGOJSV8S[REGGITXMRKGSRZI]ERGIERHXIVQW ERHGSRHMXMSRWA ?)\LMFMX%XSHIWGVMFI 4EVGIP 1EVERE;6*%VIE 4EVGIP 7IXFEGO%VIE 4EVGIP *PSSH[E]7IXFEGO)EWIQIRX%VIE 4EVGIP (VEMREKI%VIEA 4EKISJ Study Session - April 9, 2013 - Page 39 of 56 Pima County Sewer Revenue Debt Issues With Proceeds used for Marana Infrastructure Total Debt Service Payments after January 1, 2012 List of First Call Dates 1 Total Debt Service After 2 Debt InstrumentJanuary 3, 2012Date of IssueFirst Call Date 2004 WIFA Loan 1,959,607Originally issued May 11, 2004 Amended September 1, 2005 34 Final Draw March 21, 2007April 1, 2017 2007 Sewer Bond 6,790,931January 25, 2007July 1, 2017 2008 Sewer Bond 8,672,879May 22, 2008July 1, 2018 2009 COPs 214,839June 10, 2009Fully paid in 2012 2010 Sewer Obligations 541,120June 17, 2010July 1, 2020 18,179,376 1 Debt service assumes debt is paid according to orignal debt schedule without prepayment. 2 Source: Official Statements (except for WIFA Loan). 3 Source is final payment request and drawdown schedule for the 2004 WIFA Loan. 4 WIFA Policy # III.15 permits prepayment "following the tenth anniversary of the final loan draw." 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April 9, 2013 - Page 44 of 56 MM8LI8S[R[MPPEPWS[MXLMRHE]WSJVIGIMTXSJEHIQERHJVSQXLI'SYRX]TE]XLI 'SYRX]JSVER]GSWXWMRGYVVIHF]XLI'SYRX]EWEVIWYPXSJTVSNIGXHIPE]WGEYWIHF] XLI8S[RvWJEMPYVIXSGSQTPIXIMXW[SVOSRWGLIHYPI MMM%R]JEMPYVIF]XLI8S[RXSTIVJSVQXLI[SVOMREGGSVHERGI[MXLXLI'SYRX]vW TVSNIGXWGLIHYPIGSRWXMXYXIWE[EMZIVSJXLI8S[Rv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v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vWVMKLXXSGLEPPIRKISVHMWTYXIXLIGSWXWSJXLIMRJSVQEXMSRSVWIVZMGIW FMPPIHXS8S[RF]'SYRX] Study Session - April 9, 2013 - Page 45 of 56 8S[R*EGMPMXMIWQYWXFIIVIGXIHMRWXEPPIHVITPEGIHVIQSZIH 2S:IWXIH6MKLXW VIPSGEXIHERHQEMRXEMRIHMREQERRIVXLEXHSIWRSXMRXIVJIVI[MXLXLIVIEWSREFPIYWISJ TYFPMGVMKLXWSJ[E]F]XLITYFPMGXLI'SYRX]SVER]SXLIVYXMPMX]8LIPSGEXMSRSJ8S[R *EGMPMXMIWMRXLITYFPMGVMKLXSJ[E]HSIWRSXKMZIXLI8S[RER]ZIWXIHMRXIVIWXSVVMKLXMR XLIVMKLXSJ[E]ERHXLI8S[R[MPPVIQSZISVVIPSGEXI8S[R*EGMPMXMIW[LIRIZIVXLI 'SYRX]HIXIVQMRIWXLEXWYGL8S[R*EGMPMXMIWVIWXVMGXSFWXVYGXSVLMRHIVXLI'SYRX]SVXLI TYFPMGvWI\MWXMRKSVJYXYVIYWISJXLIVMKLXSJ[E]SVXLI'SYRX]vWSTIVEXMSRSVPSGEXMSRSJ 'SYRX]JEGMPMXMIW[MXLMRXLIVMKLXSJ[E] 4VMSVXSFIKMRRMRKER]EGXMZMX]MRXLI'SYRX]VMKLXSJ[E]8S[R[MPPSFXEMREPP 4IVQMXW VIUYMVIHTIVQMXWJVSQXLI'SYRX]ERHER]SXLIVETTPMGEFPINYVMWHMGXMSR 8LI'SYRX]QE]EXER]XMQIMQTSWIVIWXVMGXMSRW 6IKYPEXMSRSJ'SYRX]6MKLXWSJ;E] ERHPMQMXEXMSRWERHQEOIVIKYPEXMSRWEWXS8S[RvWYWISJXLI'SYRX]vWVMKLXWSJ[E]EWMX HIIQWFIWXJSVXLITYFPMGMRXIVIWXWEJIX]SV[IPJEVI 8LIVMKLXSJXLI'SYRX]MRERHXSEPPTYFPMGVMKLXWSJ[E]PSGEXIH[MXLMR 7YTIVMSV6MKLXW XLIYRMRGSVTSVEXIHEVIEWSJ4MQE'SYRX]EVIERHJSVIZIV[MPPFITEVEQSYRXERHWYTIVMSVXS XLIVMKLXWSJXLI8S[RERHER]SXLIVPMGIRWIISVJVERGLMWII 8LI8S[REWWYQIWXLIVMWOSJHEQEKISVHIWXVYGXMSRXS8S[Rv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w(EQEKIx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tudy Session - April 9, 2013 - Page 46 of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vWPSGEXMSRERHGSRWXVYGXMSRSJ8S[R*EGMPMXMIW[MPPGSRJSVQXSTVIZEMPMRK MRHYWXV]WXERHEVHWXLIRMRIJJIGXERHER]'SYRX]VIUYMVIQIRXWMRSVHIVXSEZSMH MRXIVJIVMRK[MXLETPERRIHJYXYVIYWISJXLITYFPMGVMKLXSJ[E]F]XLI'SYRX] &8LI8S[R[MPPPSGEXI8S[R*EGMPMXMIWMREQERRIVHIWMKRIHXSGEYWIXLIPIEWXEQSYRXSJ MRXIVJIVIRGI[MXLXLITVSTIVYWISJXLIVMKLXSJ[E]F]XLITYFPMGERHQMRMQM^I MRXIVJIVIRGI[MXLXLIVMKLXWERHGSRZIRMIRGISJEHNEGIRXTVSTIVX]S[RIVW '8LI'SYRX]QE]VIUYMVIXLI8S[RXSVIQSZIEXXLI8S[RvWWSPII\TIRWIER]8S[R *EGMPMXMIWXLEXTVIWIRXETSXIRXMEPLE^EVHXSXLITYFPMGMRXIVJIVI[MXLXLITYFPMGvWYWISJ XLITYFPMGVMKLXSJ[E]SVEVIHIXIVQMRIHF]'SYRX]XSFIEIWXLIXMGEPP]YRHIWMVEFPI (8LI8S[R[MPPRSXMJ]S[RIVWSVVIWMHIRXWSJEHNSMRMRKTVSTIVX]MR[VMXMRKFIJSVI MRWXEPPMRKTIVQERIRXSVXIQTSVEV]EFSZISVFIPS[KVSYRHJEGMPMXMIWMRXLI'SYRX]VMKLX SJ[E]8S[R[MPPQEOIIZIV]VIEWSREFPIIJJSVXXSVIWSPZIXLIGSRGIVRWSJTVSTIVX] S[RIVWERHVIWMHIRXWVIKEVHMRKXLIGSRWXVYGXMSRSJ8S[R*EGMPMXMIW-JXLI'SYRX] HIXIVQMRIWXLEXXLI8S[RJEMPIHXSVIEWSREFP]IZEPYEXIEPPSTXMSRWEZEMPEFPIXSEPPIZMEXI VIWMHIRXWvGSRGIVRWXLI'SYRX]QE]VIUYMVIXLI8S[RXSVIPSGEXIMXWJEGMPMXMIWEXXLI 8S[RvWWSPII\TIRWI %R]STIRMRKSVSFWXVYGXMSRMRXLITYFPMGVMKLXSJ[E]GEYWIHF]XLI 'SRWXVYGXMSR7EJIX] 8S[RHYVMRKXLIGSYVWISJXLI8S[RvWEGXMZMXMIWMRXLIVMKLXSJ[E][MPPFIKYEVHIHERH TVSXIGXIHEXEPPXMQIWF]WEJIX]FEVVMIVWIVIGXIHF]XLI8S[R[LMGL[MPPFIGPIEVP] HIWMKREXIHF][EVRMRKPMKLXWHYVMRKTIVMSHWSJHYWOERHHEVORIWW%R][SVOTIVJSVQIHF] XLI8S[RMRSVEHNEGIRXXSETYFPMGVSEH[E]STIRJSVXVEZIP[MPPFITVSTIVP]WMKRIHERH QEVOIHF]XLI8S[R[MXL[EVRMRKERHHMVIGXMSREPHIZMGIWMREGGSVHERGI[MXLEPPETTPMGEFPI WXEXIERHPSGEPXVEJJMGVIKYPEXMSRWERHXLI%VM^SRE(ITEVXQIRXSJ8VERWTSVXEXMSRv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tudy Session - April 9, 2013 - Page 47 of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vW[SVOMRXLI TYFPMGVMKLXSJ[E]SVXLII\MWXIRGISJ8S[R*EGMPMXMIWSVMRER][E]VIPEXIHXSXLI8S[Rv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vWTIVJSVQERGISVSFWIVZERGISJER]XIVQSVGSRHMXMSRSJXLMW0MGIRWISVER] VIKYPEXMSRRSXMGISVHMVIGXMSRSJXLI'SYRX]SV MZ MRZSPZIWXLIGSRWXMXYXMSREPMX]ZEPMHMX] SVIRJSVGIQIRXSJXLMW0MGIRWI8LI'SYRX]QE]QSZIJSVHMWWSPYXMSRSJER]MRNYRGXMSRSV VIWXVEMRMRKSVHIVERHXEOIER]SXLIVETTVSTVMEXIWXITMRER]WYGLWYMXEGXMSRSVTVSGIIHMRK XLEXMXHIIQWRIGIWWEV]SVEHZMWEFPIXSTVSXIGXMXWMRXIVIWXWSVXLIMRXIVIWXWSJXLITYFPMG 8LI8S[Rv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tudy Session - April 9, 2013 - Page 48 of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tudy Session - April 9, 2013 - Page 49 of 56 )<,-&-8 8S7IXXPIQIRX%KVIIQIRXFIX[IIR8S[RSJ1EVEREERH4MQE'SYRX] *SVQSJ8S[R0MGIRWI%KVIIQIRX 0-')27)%+6))1)28 &)8;))2 4-1%'3928=%2(8,)83;23*1%6%2% *367);)67%2(6)0%8)(*%'-0-8-)7-283;26-+,873*;%= 6)'-8%07 %8LMW0MGIRWI%KVIIQIRX XLMWw%KVIIQIRXx MWIRXIVIHMRXSJSVXLITYVTSWISJEYXLSVM^MRKXLI 4MQE'SYRX]ETSPMXMGEPWYFHMZMWMSRSJXLI7XEXISJ%VM^SRE XLIw'SYRX]x XSMRWXEPPERH QEMRXEMRTYFPMG[EWXI[EXIVGSRZI]ERGIJEGMPMXMIWMRVMKLXWSJ[E]S[RIHSVGSRXVSPPIHF] 8S[RSJ1EVEREEQYRMGMTEPGSVTSVEXMSR XLIw8S[Rx XLIw0MGIRWIx &8LMW%KVIIQIRXMWFIMRKIRXIVIHMRXSEWEGSRHMXMSRSJER-RXIVKSZIVRQIRXEP%KVIIQIRX XLI w-+%x HIJMRI"FIX[IIRXLITEVXMIWGSRGIVRMRKXLIHMZMWMSRSJ[EWXI[EXIVQEREKIQIRX VIWTSRWMFMPMXMIW[MXLMRERH[MXLSYXXLI8S[RvWGYVVIRXFSYRHEVMIW '4YVWYERXXSXLI-+%XLI8S[RMWVIWTSRWMFPIJSVTVSZMHMRK[EWXI[EXIVWIVZMGIWXSGYWXSQIVW PSGEXIH[MXLMRXLI8S[RvW(IWMKREXIH1EREKIQIRX%VIE w8S[R(1%x ERHXLI'SYRX]MW VIWTSRWMFPIJSVTVSZMHMRK[EWXI[EXIVWIVZMGIWXSGYWXSQIVWPSGEXIHSYXWMHIXLI8S[Rv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vW[EWXI[EXIV GSRZI]ERGIJEGMPMXMIWPSGEXIHSVXSFIPSGEXIH[MXLMRXLITYFPMGVMKLXWSJ[E] 8LI0MGIRWIKVERXIHF]XLMW%KVIIQIRX[MPPFIIJJIGXMZIJSVEXIVQSJ]IEVW 8IVQ JVSQXLIHEXIXLMW%KVIIQIRXMWETTVSZIHF]XLI8S[R'SYRGMP8LMW%KVIIQIRX I\XMRKYMWLIWWYTIVWIHIWERHVITPEGIWEPPTVIGIHMRKJVERGLMWIWSVPMGIRWIWKVERXIHF]8S[R VIPEXMRKXS'SYRX]vW[EWXI[EXIVGSRZI]ERGIJEGMPMXMIWMR8S[RVMKLXWSJ[E] w'SYRX] *EGMPMXMIWx -XQE]FIVIRI[IHJSVEHHMXMSREPTIVMSHWYTSRQYXYEP[VMXXIREKVIIQIRX WMKRIHF]XLITEVXMIW Study Session - 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April 9, 2013 - Page 54 of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vW[SVOMRXLI TYFPMGVMKLXSJ[E]SVXLII\MWXIRGISJ'SYRX]*EGMPMXMIWSVMRER][E]VIPEXIHXSXLI 'SYRX]v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vWTIVJSVQERGISVSFWIVZERGISJER]XIVQSVGSRHMXMSRSJXLMW0MGIRWISVER] VIKYPEXMSRRSXMGISVHMVIGXMSRSJXLI8S[RSV MZ MRZSPZIWXLIGSRWXMXYXMSREPMX]ZEPMHMX]SV IRJSVGIQIRXSJXLMW0MGIRWI8LI8S[RQE]QSZIJSVHMWWSPYXMSRSJER]MRNYRGXMSRSV VIWXVEMRMRKSVHIVERHXEOIER]SXLIVETTVSTVMEXIWXITMRER]WYGLWYMXEGXMSRSVTVSGIIHMRK XLEXMXHIIQWRIGIWWEV]SVEHZMWEFPIXSTVSXIGXMXWMRXIVIWXWSVXLIMRXIVIWXWSJXLITYFPMG 8LI8S[Rv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tudy Session - April 9, 2013 - Page 55 of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tudy Session - April 9, 2013 - Page 56 of 56