City of Apache Junction, Arizona Page 1

Transcription

1 Tuesday, January 20, 2015 City of Apache Junction, Arizona Agenda City Council Meeting 7:00 PM Meeting location: City Council Chambers at City Hall 300 E Superstition Blvd Apache Junction, AZ Ph: (480) City Council Chambers A. CALL TO ORDER B. INVOCATION AND PLEDGE OF ALLEGIANCE C. ROLL CALL D. CONSENT AGENDA The council may, at this time, take single action on any or all items listed as consent agenda items. These may include, but are not limited to, acceptance of agenda, acceptance of minutes, appointments, acceptance of resignations and adoption of certain resolutions and other items which do not require a public hearing. The consent agenda is a timesaving device of which the mayor and city council is to receive documentation on these items from the city manager for their review prior to the meeting. Any member of the council may remove any item from the consent agenda for discussion and cause a separate vote on the matter later in the agenda Acceptance of agenda. Approval of minutes of regular meeting of January 6, Consideration of approval of Resolution No , recommending the city s Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center (dba East Valley Adult Resources) for support of transportation services and authorizing the Mayor to sign a pass-through agreement. Consideration of approval of Resolution No , committing local funds as leverage for a Fiscal Year 2014 State Special Project application. Consideration of approval of Resolution Nos (Authority to submit), (Committment of local funds), and (Adoption of Housing Rehabilitation Guidelines) regarding the submission of a Fiscal Year State Housing Fund grant application. E. AWARDS, PRESENTATIONS AND PROCLAMATIONS Awards, presentations from other organizations, proclamations issued by the mayor, and acknowledgement of distinguished guests and visitors, and staff presentation of receipt of grant or donated funds are permitted at this time. City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

2 City Council Meeting Agenda January 20, 2015 F. ANNOUNCEMENT OF CURRENT EVENTS The mayor or any member of council may at this time present a brief summary of current events. However, no discussion shall take place on such items except for clarifying comments related to substance, time and location. G. CITY MANAGER'S REPORT The city manager, members of city staff or those individuals designated by the manager may present information pertinent to items under consideration or information related to the operation of the city. There shall however be no discussion at this time except for clarification inquiries City manager's report. Update and discussion on the Arizona Office of Tourism Marketing Cooperative. H. PUBLIC HEARINGS Public hearings required by applicable law shall be conducted by the council and any person shall be given the opportunity to speak. All remarks shall be addressed to the council as a whole and not to any member thereof. Such remarks shall be limited to five (5) minutes unless additional time is granted by the mayor. This time limitation shall not apply to applicants and their agents appearing before the council Consideration of and action on the application for a special event liquor license for Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S. Goldfield Road. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control. Consideration of and action on the application for a special event liquor license for Superstition Mountain Rotary Club for Lost Dutchman Days on February 27 - March 1, 2015, at 1590 E. Lost Dutchman Boulevard. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control. Discussion on Apache Junction City Code, Vol. I, Chapter 14 Cable Systems Modifications. No action required at this time. Consideration of acceptance of the December 16, 2014 CenturyLink Cable TV License applicaiton. I. OLD BUSINESS The council shall consider any business that has been previously considered and which is still unfinished to include those items previously postponed or tabled. No member of the public shall be permitted to speak on these items unless invited to do so by the mayor after first submitting a written request-to-speak form with the city clerk. City of Apache Junction, Arizona Page 2 Printed on 1/13/2015

3 City Council Meeting Agenda January 20, 2015 J. NEW BUSINESS The council shall consider any business not yet considered. No member of the public shall be permitted to speak on these items unless invited to do so by the mayor after first submitting a written request-to-speak form with the city clerk. 12. Presentation and discussion on city building code and related city code updates. Staff will discuss updating the city s building codes to the 2015 edition of the International Code Council Series of Codes. The city s current code is based on the 2006 edition. K. COUNCIL DIRECTION TO STAFF This item allows the mayor and city council to direct staff on specifically listed matters. 13. Direction to staff on recruitment for city manager position. In conjunction with City Manager George Hoffman's plans to retire in 2015, the mayor and council wish to proceed with a recruitment process to fill the position. L. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Executive Session at 5:45 P.M. and Work Session at 7:00 P.M. for Monday, February 2, Executive Session at 5:45 P.M. for Tuesday, February 3, Other meetings if necessary. M. CALL TO PUBLIC At this time the public has the privilege to address the council with requests, communications, comments or suggestions relating to city business that are not listed on the agenda. All speakers must have already submitted a written Request to Speak form to the city clerk no later than the conclusion of the city manager s report portion of the agenda. If there is a group speaking on the same item, they should select a spokesperson. All such remarks shall be addressed to the council as a whole and not to any member thereof. The mayor is authorized to ask a speaker to stop speaking and leave the podium or to adjourn the meeting if anyone becomes disorderly, uncivil, makes personal attacks or continues to speak about items that are not within the jurisdiction of the city after being warned such issues are beyond the jurisdiction of the city to act. The council may not answer questions of the speaker, discuss the matter with one another, but may, at the conclusion: 1) respond to criticism by a speaker; 2) ask the city manager to review a matter; 3) ask the city manager to place the matter on a future agenda. Each speaker must approach the podium, speak into the microphone, provide their name and address. There is a three (3) minute time limit per speaker. N. ADJOURNMENT Copies of this agenda and additional information on any of the items listed above may be obtained from the City Clerk's office located at 300 E Superstition Blvd, Apache Junction, AZ 85119, Monday through Thursday from 7:00a-6:00p, excluding holidays. The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities. Specific requests may be made by contacting the Human Resources Office at (480) or TDD (480) City of Apache Junction, Arizona Page 3 Printed on 1/13/2015

4 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 1. File ID: Sponsor: Kathy Connelly Index: Local/State/Federal Statutory Requirement Agenda Date: 1/20/2015 In Control: City Council Meeting Acceptance of agenda. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

5 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 2. File ID: Sponsor: Kathy Connelly Index: Local/State/Federal Statutory Requirement Agenda Date: 1/20/2015 In Control: City Council Meeting Approval of minutes of regular meeting of January 6, Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

6 CITY COUNCIL REGULAR MEETING JANUARY 6, 2015 The regular meeting of the City Council of the City of Apache Junction, Arizona, was held on January 6, 2015, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Insalaco called the meeting to order at 7:05 p.m. INVOCATION Councilmember Waldron gave the Invocation. PLEDGE OF ALLEGIANCE ROLL CALL Councilmember Wilson led the Pledge of Allegiance. Councilmembers Present: Mayor Insalaco Vice Mayor Barker Councilmember Evans Councilmember Rizzi Councilmember Waldron Councilmember Wilson (Councilmember Serdy was absent.) Staff Present: City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Public Safety Director Tom Kelly Development Services Director Larry Kirch Assistant to the City Manager Matt Busby REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 1 OF 21

7 Others Present: Senior Planner Rudy Esquivias ACCEPTANCE OF CONSENT AGENDA ) ) Vice Mayor Barker MOVED THAT THE CONSENT AGENDA BE ACCEPTED AS PRESENTED. THE MOTION. Councilmember Evans SECONDED VOTE: Unanimous. The motion carried. AWARDS, PRESENTATIONS AND PROCLAMATIONS Mayor Insalaco read a proclamation designating January 20, 2015 as Arizona Winter Visitors Day and presented the proclamation to Judy Lutes of the Arizona Winter Visitors Association. ANNOUNCEMENT OF CURRENT EVENTS None. CITY MANAGER S REPORT Assistant City Manager Bryant Powell read two letters of appreciation sent to the police department and code compliance. PUBLIC HEARINGS APPLICATION FOR A TEMPORARY EXTENSION OF PREMISES FOR ELKS LODGE #2349 FOR A CAR SHOW ON JANUARY 17, 2015 ) ) City Clerk Kathleen Connelly briefed the council on the item. applicant address the council. Mayor Insalaco requested the Ms. Cindy Pierson of the Elks Lodge addressed the council. It is the fourth year helping the REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 2 OF 21

8 Paws 4 Life Car Show. Hopefully it is another good turnout like last year when they had about 70 cars. is a good showing. was really good. Mayor Insalaco commented that Ms. Cindy Pierson stated it Mayor Insalaco opened the public hearing on the item. There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion. There being no further discussion, he called for a motion. Councilmember Waldron MOVED THAT THE APPLICATION FOR A TEMPORARY EXTENSION OF PREMISES FOR ELKS LODGE #2349 FOR JANUARY 17, 2015, SUBMITTED BY RALPH HENDERSON, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. THE MOTION. Vice Mayor Barker SECONDED VOTE: Unanimous. The motion carried. APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR ELKS LODGE #2349 FOR LOST DUTCHMAN DAYS ON FEBRUARY 26, 2015 ) ) City Clerk Kathleen Connelly briefed the council on the item. Ms. Cindy Pierson from the Elks Lodge addressed the council for any questions. Mayor Insalaco commented they have none as they have been through this one before unless someone else has any questions for her. This has always been a success with no problems. He opened the public hearing on the item. There being no one wishing to speak, he closed the public REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 3 OF 21

9 hearing and called for council discussion. There being no further discussion, he called for a motion. Vice Mayor Barker MOVED THAT THE APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR ELKS LODGE #2349 FOR FEBRUARY 26, 2015, SUBMITTED BY RALPH HENDERSON, BE RECOMMENDED FOR APPROVAL TO THE ARIZONA DEPARTMENT OF LIQUOR LICENSES AND CONTROL. THE MOTION. Councilmember Wilson SECONDED VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1411, CASE PZ-7-14, A CITY-INITIATED REQUEST FOR A PROPOSED REZONING OF A ±2 ACRE PROPERTY LOCATED AT 1560 W. SUPERSTITION BOULEVARD FROM RECREATIONAL VEHICLE PARK TO GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT ) ) Senior Planner Rudy Esquivias briefed the council on the item. Mayor Insalaco opened the public hearing on the item. There being no one wishing to speak, he closed the public hearing and reopened the item to council discussion. There being no further discussion, he called for a motion. Councilmember Waldron MOVED THAT ORDINANCE NO BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. THE MOTION. Vice Mayor Barker SECONDED VOTE: Unanimous. The motion carried. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 4 OF 21

10 read the ordinance by title only. City Clerk Kathleen Connelly Councilmember Waldron MOVED THAT ORDINANCE NO. 1411, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. THE MOTION. Vice Mayor Barker SECONDED VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1412, PZ- 6-14, FOR APPROVAL OF A PLANNED DEVELOPMENT MAJOR AMENDMENT, PROPOSING TO CHANGE THE PLAN OF DEVELOPMENT FOR A GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT AT THE NORTHWEST CORNER OF IRONWOOD AND BASELINE ) ) Senior Planner Rudy Esquivias briefed the council on the item. Councilmember Rizzi commented the trees in back on the west side of the property are a buffer zone. When this was first brought to them they were told there would not be any loading or unloading of goods in the back of the stores. stated that is correct. Senior Planner Rudy Esquivias Councilmember Rizzi commented there will not be any trucks back there. It will be peaceful back there. Senior Planner Rudy Esquivias stated there is no alleyway. The only thing that comes close to an alleyway is a little loop which may be a drive thru or access for one of the buildings. They do not know what the use is REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 5 OF 21

11 going to be yet. It is the only vehicle access point near the manufactured homes. Councilmember Rizzi commented there is quite a bit of buffer zone. Councilmember Wilson asked what the little square things are at the front of the buildings. He asked if it is covered or has supports. stated they are pillars. Senior Planner Rudy Esquivias Councilmember Wilson asked if it is covered as it does not quite look like it. Senior Planner Rudy Esquivias stated the pictures show it is a covered pedestrian walkway. The roof lines extend over the sidewalk. Councilmember Waldron commented it would be interesting to see the traffic study with the eastbound off ramp at Meridian. It will redirect a lot of traffic over to Baseline and off of Ironwood. Senior Planner Rudy Esquivias stated that is what the city engineer believes. Vice Mayor Barker asked if there are turn lanes to the east of this property. Senior Planner Rudy Esquivias stated it will be a southbound deceleration lane. Vice Mayor Barker commented it is the northern driving traffic that will be of concern in the morning. stated that is correct. applicant address the council. Senior Planner Rudy Esquivias Mayor Insalaco requested the REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 6 OF 21

12 Mr. Grant Therion with A.T. Meridian, the developer and applicant, addressed the council. Vice Mayor Barker asked if they have any possible tenants at this point. Mr. Grant Therion stated they do not right now. They did not want to go out to the market unless they had something approved. They will go out to the market if this plan is approved. Mayor Insalaco commented a lot of times they get developments, they pass them, and then they sit on the shelf for two or three years. They already have a couple of them in town. He asked if he has any idea, knowing he has to get the tenants, how long before this might even get started once it is approved. Mr. Grant Therion stated obviously as the developer the sooner the better. They would love it to happen sooner. They used to be able to build it and they will come, but in today s economy they have to have some presales and preleasing. He used to be a developer that did some brokerage. Now he is a broker that does some development because he needs to go find tenants. He cannot promise them something. Mayor Insalaco commented he is just asking if he has any idea on when he would like to get it started. Mr. Grant Therion stated he is going to get it started. He has cost estimates and he will go to a lender and see. He is all cued up ready to go as soon as he gets some interest from tenants, either in the building in the back or in the drive thrus. Obviously, east on Baseline east of Ironwood there is one thousand acres the State Land Department has that they sold at one time and then took back. They would love that to happen. It would make this a lot more feasible. It is those kinds of things. The timing of when they happen may affect them. It will be positive things for them. A lot of it will be dictated by the economy. Right now things are not going great but they seem to be plugging along. They will REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 7 OF 21

13 go find certain uses they think would fit well there based on the traffic that is there. He lives in Queen Creek and that is what has interested him there. There is a lot of traffic on Ironwood. He has talked to some economic development people with Apache Junction to figure out what kind of uses are needed out here. Those are what he is going to pursue. Mayor Insalaco commented that is what he wanted to know. He is not going to get this approved and then just let it sit. Councilmember Waldron commented they are hoping State Land moves, too. Assistant City Manager Bryant Powell stated this is another opportunity where the Buxton Study that they encouraged staff and budgeted in the prior year will be data the economic development staff will present to the private sector. They will be able to utilize that. This is another one of those chances to watch and see how that investment unfolds. public hearing on the item. Mayor Insalaco opened the Mr. Ken Camp, Desert Harbor, the development behind this, addressed the council. He stated they have some concerns in the park. At the planning meeting they were told they would build an 8 foot wall on the west and north. He presumes the walls will butt up against each other so they do not have any weeds growing up between them. They are concerned about the height of the lighting in the back of the building. If it is very high over the 8 foot wall it will light up the whole row of people along the back wall. If the lighting is down lower it should not affect them. He asked if there are any back doors. there are not. Mayor Insalaco commented Mr. Ken Camp stated they only have one door in and out. He asked if that is against the fire laws. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 8 OF 21

14 anymore. Mayor Insalaco commented not City Attorney Joel Stern stated this is not question and answer. just concerned. Mr. Ken Camp stated he is City Attorney Joel Stern stated he can make his points and then the council can direct staff to get those answers. Mr. Ken Camp stated they are also concerned about the lighting in the parking lot. They are very concerned about the access out of this going onto Ironwood. He asked if it is going north or south. They cannot get out of their parking lot now in the morning and in the afternoon. They are also concerned about what time of day the trash would be picked up. Mayor Insalaco closed the public hearing with no one else wishing to speak. He reopened the item to council discussion. Vice Mayor Barker requested they get some of those questions answered. Councilmember Waldron asked Rudy or the architect to address the concerns. Mr. Rob Burkheimer, the architect, addressed the council. There was a question about the height of the wall. They mentioned in the planning and zoning meeting that it would be 8 feet. There are some details that need to be worked out later on as there is a wall there now. Where the wall hits exactly on the property line and where they are trying to put a new wall he cannot be sure if there is a space between or not. It is a detail thing that will have to be worked out later. Obviously, nobody wants to have a dead zone there. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 9 OF 21

15 they do not want a space in there. Vice Mayor Barker commented Mr. Rob Burkheimer agreed. He acknowledged that. They have to work with the night sky ordinance and they are not allowed to shed any light beyond their property line. Except for maybe some ambient light factor there is no reason to light that up other than to make sure it is not a pitch black area over there. He does not see that as an issue or concern. Things like that are normally reviewed in plan review. There are no back doors. He is not sure about the lighting in the parking lot except they have the same issue of the night sky ordinance applying. They have to provide photometric studies showing they are not producing any stray light going off the property. It is another standard in plan review. It is too early to mention trash pick up or how it would be done. A retail center is normally done once a week on demand. This is a small center and should not be high demand. There is always an issue of people dumping their trash in the center more than the center producing its own trash. It is a detail that is not germane at this time. Vice Mayor Barker commented he had another question in regards to access. He asked how the traffic would be directed going out of there. Mr. Rob Burkheimer stated they have done a traffic study and have a deceleration lane. Vice Mayor Barker commented she believes his concern is they would be turning north and would try to butt up against all that traffic going north. Mr. Rob Burkheimer stated he did not know how to respond to that except that everywhere they can do that. He does not think this is the kind of center that is going to generate a lot of cars at one time. It is not a large commercial center where they would have hundreds of cars trying to get out. One or two cars. If they cannot get out on their thing, they can pull through to the site on the corner and do their turn from there. The two properties are congruent with each other. The deceleration lane will help with the cars coming from the north. They will pull out of the traffic flow REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 10 OF 21

16 and not cause people to want to come to the center to stop traffic in the northbound direction. Again, it is a very small center, very modest in size, and they are not looking at a lot of cars. Mayor Insalaco closed the discussion with no further comments and called for a motion. Vice Mayor Baker MOVED THAT ORDINANCE NO BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. THE MOTION. Councilmember Evans SECONDED VOTE: Unanimous. The motion carried. read the ordinance by title only. City Clerk Kathleen Connelly Vice Mayor Barker MOVED THAT ORDINANCE NO. 1412, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. THE MOTION. Councilmember Wilson SECONDED VOTE: Unanimous. The motion carried. PROPOSED ORDINANCE NO. 1408, ANNEXATION CASE AN-2-14, REQUEST BY MESA DEVELOPMENT CORPORATION AND JBW INVESTMENTS LLC FOR ANNEXATION OF AND ASSIGNMENT OF CITY ZONING DISTRICTS TO PROPERTIES LOCATED AT THE SOUTHEAST CORNER OF TOMAHAWK AND US 60/PROPOSED ORDINANCE NO. 1409, CASE PZ-4-14, REQUEST BY MESA REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 11 OF 21

17 DEVELOPMENT CORPORATION AND JBW INVESTMENTS LLC FOR REZONING SEVERAL PROPERTIES LOCATED AT THE SOUTHEAST CORNER OF TOMAHAWK AND US 60 FROM RESIDENTIAL ZONINGS TO GENERAL COMMERCIAL DISTRICT BY PLANNED DEVELOPMENT ) ) Senior Planner Rudy Esquivias briefed the council on the items. applicant address the council. Mayor Insalaco requested the Mr. John Wharton, 1540 E. San Remo, Gilbert, addressed the council. He stated he appreciated being able to meet with Rudy a couple of weeks ago and work out some details. He told him he would do everything he could to bring the hotel to the property as soon as possible. He had hoped to get a four-story, 84-room hotel there. They said go get the zoning so here we are. He was hoping to get a sign the same as Carl s Jr. but the ordinance has been changed and he thinks they can live with that. He thinks they can live with removing a lot of things the city did not want. He would like a little bit of flexibility with the balance of parcel, other than the hotel part, so their hands are not so tied. He is not sure what is going to go in there. They would like to have a little more elbow room. Councilmember Waldron commented he does not understand that if he is looking for a hotel or motel on that property why he would want to have a mini-storage warehouse or a used car sales lot. Mr. John Wharton stated those are located next to hotels all the time. It is not their intent. Councilmember Waldron commented he has stayed at motels and has not seen a used car lot next door. Mr. John Wharton stated he thinks the motel at Idaho and US 60 has a mini-storage right REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 12 OF 21

18 next door. These things happen. The property that surrounds them is an old mobile home park. It is not that upscale. They do not expect some upscale user is going to want to necessarily want to be there unless they get a really nice hotel there. Then their options will increase. That is their first priority. They are not looking specifically for anything else. They want to have some flexibility because they feel like they are doing their best to get a hotel for the city. They are okay with the sign and eliminating the vast majority of the uses the city does not want. Mayor Insalaco commented he has a problem with RV, boat and vehicle storage. They turn out to be, excuse his expression, junkyards. Councilmember Rizzi agreed. Vice Mayor Barker commented anywhere things are up against the freeway. Mayor Insalaco commented right up against the freeway with boat trailers and a lot of people just store them there and they forget about them. They turn out to be junk. And the used auto sales and stuff. As far as the multi-use and single family, he would not have a problem with that, but he sure has a problem with the RV, boat and vehicle storage and the used auto sales. Vice Mayor Barker asked if the idea here is to make this better. He alluded to the fact the area around it was not as upscale, which was his term. She asked if the idea is to create situations in which we become more upscale. She asked why the council would want to put itself in a position where nothing particularly upscale would want to be there, such as having warehouses backed up against the freeway and cars parked all over the place. She does not know why he would want to do that to himself. Mr. John Wharton stated he is not necessarily in disagreement with her. The property is a half mile north of Baseline Road. There is nothing for seven miles on the other side of Baseline Road except the landfill. They can go three miles east and west on Tomahawk and there is REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 13 OF 21

19 nothing. There is up to fifty square miles of nothing. The other property on Ironwood has all the traffic. This property does not have traffic. This is not a great commercial location because of its access and there are no homes out there. It is state-owned land so it will probably not happen any time soon. He thinks, at least in the interim, be a little bit flexible to some of the things that go out there. Maybe with a window of for so many years they can do this but not that as there are not enough homes out there to support a business and there will not be for years in that particular area to support a lot of commercial uses. Particularly with the fact it is virtually a dead end road. It goes to the landfill. There is not a lot of traffic going up and down the street. And there is the access issue discussed the last time. He has been in commercial real estate for a long time and he has all the credentials. He has the three top in the world. He knows a little bit about what he is talking about. This site is not a great site. Councilmember Wilson asked if the area to the north is the non-hotel portion. Senior Planner Rudy Esquivias stated they do not know yet. They have a very, very conceptual drawing which shows a possible hotel site along Tomahawk. The rest of it was set aside for RV storage. This is not a real plan. The hotel does not necessarily have to go here. One example is on 29th Avenue and Idaho there is the 4 Sons and the hotel is a few hundred feet to the east of the 4 Sons. It does not necessarily have to be on the main road frontage. They do not have a development plan, only an idea. Councilmember Wilson asked if leaving the property as GR would open up the opportunities for him to market it any different. He knows the portion down where the apartment buildings are would be locked in. Senior Planner Rudy Esquivias stated all this is theoretically going to go away. If this is rezoned, then over time all these uses would go away. The commercial development opportunity would come along. Councilmember Wilson commented if they left the portion to the north GR he would have REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 14 OF 21

20 to come in later on for a rezoning and it would be addressed in the future. Senior Planner Rudy Esquivias stated the portion down below right now is zoned for apartments. The north pieces are basically zoned for 1.25 acre manufactured homes horse property. Councilmember Wilson asked if he would have to come in for a rezoning if he decides to put a hotel in the lower area. stated he would. Senior Planner Rudy Esquivias Mayor Insalaco commented he has a problem with him putting in a used car lot. They are going to be fenced in so here they go with a chain link fence. If he puts in a boat storage it is a chain link fence. They have so many of them now and they are trying to clean up the city. To him, it is not them being good stewards of the city if they do this that way. He has a terrible time with that. Councilmember Rizzi agreed. She commented she believes this is one of those times when they need to stick to their guns. Planning and zoning had gone through and carefully taken a look at some of the other businesses we have and some of the potential we have in this area. It is one of those times when they need to stick to their guns and back up our planning and zoning commission. They have worked hard on this. She agrees they are uses they just do not want in that area. Mr. John Wharton asked if the application would be acceptable if the outside storage was deleted. He asked if he stipulates to no outside storage would the rest of the application would be acceptable. Mayor Insalaco asked what he plans to do with the used cars. He asked if they would be put inside a building. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 15 OF 21

21 Mr. John Wharton stated they can nix the used cars, too. He is just trying to get this done tonight. Vice Mayor Barker commented in reality they could just take it as it came through planning and zoning and, if they wish, they could add the number ten signage per the staff memo. Councilmember Evans commented she has absolutely no problem with the annexation and the rezoning allowing him to pursue a hotel or a number of hotels. As far as any of those other uses, other than multi-family, she still does not want them on the freeway access. It does not even really fit. She liked what planning and zoning came up with, she still thinks number ten needs to be added in, but they are just not what they want by the freeway. The city has limited freeway visibility and he has limited access in there, which is one of the things he said originally that he had a problem with. She is confused why he would not sell off the back part to a hotel and keep the front for retail. Mr. John Wharton stated that is the second site plan. It is to put the hotel on the east side with a plan for a restaurant, maybe a Denny s or something, which is what they would really like to do. He asked to have the site plan put on the overhead. It shows the hotel on the eastern side along the freeway with some restaurant pads. What is crossed out on the uses is boat storage, where he had wanted to delete that from planning and zoning s recommendations. He will take that off. Now he will take off the mini-storage. He will take off the auto sales. When he takes all that out he is basically going with what planning and zoning suggested. is. Vice Mayor Barker stated he Mr. John Wharton stated he is okay with that. If they are okay with that, he is okay with that. Councilmember Waldron commented he had mentioned at the work session that under item REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 16 OF 21

22 eight, he still has the option of going to development services for a conditional use permit for another use. That option still exists for him to do. is helpful. Mr. John Wharton stated that Mayor Insalaco commented plus to change an ordinance for one person, then they have someone else coming up. They would want to know if they did it for one party why they would not do it for them. This is our ordinance and they should stick by it. Councilmember Rizzi agreed. Mayor Insalaco opened the public hearing on the items. There being no one wishing to speak, he closed the public hearing and reopened the items to council discussion. There being no further discussion, he called for a motion. Vice Mayor Barker MOVED THAT ORDINANCE NO BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. SECONDED THE MOTION. Councilmember Waldron VOTE: Unanimous. The motion carried. read the ordinance by title only. City Clerk Kathleen Connelly Vice Mayor Barker MOVED THAT ORDINANCE NO. 1408, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED. THE MOTION. Councilmember Wilson SECONDED VOTE: Unanimous. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 17 OF 21

23 The motion carried. second motion. Mayor Insalaco called for the Vice Mayor Barker MOVED THAT ORDINANCE NO BE READ BY TITLE ONLY AND THE READING OF THE ENTIRE ORDINANCE BE WAIVED. THE MOTION. Councilmember Wilson SECONDED VOTE: Unanimous. The motion carried. read the ordinance by title only. City Clerk Kathleen Connelly Vice Mayor Barker MOVED THAT ORDINANCE NO. 1409, AS READ BY THE CITY CLERK, BE APPROVED AND ADOPTED ADDING THE CONDITION NUMBER TEN, SIGNAGE, CONTAINED IN THE DECEMBER 22ND STAFF REPORT. SECONDED THE MOTION. Councilmember Waldron VOTE: Unanimous. The motion carried. OLD BUSINESS None. NEW BUSINESS None. DIRECTION TO STAFF ACCEPTANCE OF CENTURYLINK CABLE TV LICENSE APPLICATION ) REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 18 OF 21

24 briefed the council on the item. ) City Attorney Joel Stern Mayor Insalaco called for any discussion. There being no discussion, he called for a motion. Councilmember Waldron MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING ACCEPTANCE OF THE CENTURYLINK CABLE TV LICENSE APPLICATION: 1) FILE CENTURYLINK APPLICATION AND PROPOSED CABLE TV LICENSE AGREEMENT (DECEMBER 16TH VERSION) IN A PUBLIC FILE AT THE CITY CLERK S OFFICE PURSUANT TO APACHE JUNCTION CITY CODE, VOLUME I, SECTION (A) AND MAKE IT AVAILABLE FOR PUBLIC INSPECTION. 2) SCHEDULE ON THE JANUARY 20TH COUNCIL AGENDA CONSIDERATION FOR APPROVAL OF THE CENTURYLINK APPLICATION UNDER NEW BUSINESS. 3) SCHEDULE A PUBLIC HEARING ON THE PROPOSED CENTURYLINK CABLE TV LICENSE AGREEMENT UNDER PUBLIC HEARINGS ON FEBRUARY 3RD, 2015 FOR CONSIDERATION AND ACTION. AND 4) CAUSE A NOTICE TO BE PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION ONCE A WEEK FOR TWO CONSECUTIVE WEEKS ANNOUNCING THE FEBRUARY 3RD, 2015 PUBLIC HEARING WHERE CENTURYLINK S PROPOSED CABLE TV LICENSE WILL BE DISCUSSED AND CONSIDERED BY COUNCIL. THE FIRST PUBLICATION SHALL BE PUBLISHED BETWEEN JANUARY 11TH AND JANUARY 17TH, 2015 AND THE SECOND BETWEEN JANUARY 18TH AND JANUARY 24TH, THE MOTION. Vice Mayor Barker SECONDED VOTE: Unanimous. The motion carried. CHANGES/REPEAL OF CERTAIN PROVISIONS OF THE CITY CODE, VOLUME I, CHAPTER 14, CABLE TELEVISION ) ) City Attorney Joel Stern briefed the council on the item. Mayor Insalaco called for any discussion. There being no discussion, he called for a motion. Councilmember Waldron MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 19 OF 21

25 CHANGES/REPEAL OF CERTAIN PROVISIONS OF THE CITY CODE, VOLUME I, CHAPTER 14, CABLE TELEVISION: SCHEDULE PUBLIC HEARINGS ON JANUARY 20TH, 2015 (DISCUSSION, PUBLIC INPUT ONLY) AND FEBRUARY 3RD, 2015 (DISCUSSION, PUBLIC INPUT AND COUNCIL ACTION) FOR AN ORDINANCE AND RESOLUTION MODIFYING APACHE JUNCTION CITY CODE, VOLUME I, CHAPTER 14, CABLE SYSTEMS. THE MOTION. Councilmember Rizzi SECONDED VOTE: Unanimous. The motion carried. SELECTION OF MEETING DATES, TIMES, LOCATIONS, AND PURPOSES Vice Mayor Barker announced the executive session and work session scheduled for Monday, January 19, 2015, have been cancelled due to Martin Luther King, Jr. Day. She MOVED THAT AN EXECUTIVE SESSION AT 5:45 P.M. AND A WORK SESSION AT 7:00 P.M. BE HELD ON TUESDAY, JANUARY 20, 2015, IN THE CITY COUNCIL CONFERENCE ROOM AND CITY COUNCIL CHAMBERS RESPECTIVELY. SECONDED THE MOTION. Councilmember Waldron VOTE: Unanimous. The motion carried. CALL TO THE PUBLIC: None. ADJOURNMENT ) ) Mayor Insalaco adjourned the meeting at 8:05 p.m. Consent Agenda Items are as follows: 1. Acceptance of Agenda. REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 20 OF 21

26 2. Approval of Minutes of Regular Meeting of December 16, ACCEPTED THIS 20TH DAY OF JANUARY, 2015, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 20TH DAY OF JANUARY, JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of the City of Apache Junction, Arizona, held on the 6th day of January, I further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of January, KATHLEEN CONNELLY City Clerk REGULAR MEETING OF THE CITY COUNCIL JANUARY 6, 2015 PAGE 21 OF 21

27 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 3. File ID: Sponsor: Heather Patel Index: Community Infrastructure Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of approval of Resolution No , recommending the city s Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center (dba East Valley Adult Resources) for support of transportation services and authorizing the Mayor to sign a pass-through agreement. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

28 City of Apache Junction Development Services Department DATE: January 7, 2015 TO: THROUGH: FROM: The Honorable Mayor and City Council George Hoffman, City Manager Larry Kirch, Development Services Director Roger Hacker, Revenue Resources Manager Heather Patel, Grants Coordinator SUBJECT: Local Transportation Assistance Fund II Application for Fiscal Year 2015 REQUEST The mayor and city council shall consider proposed Resolution No recommending the city s Fiscal Year 2015 Local Transportation Assistance Fund (hereinafter LTAF ) II allocation be directed to the Apache Junction Active Adult Center (dba East Valley Adult Resources) for support of transportation services and authorizing the Mayor to sign a pass-through agreement. BACKGROUND Pursuant to the court order filed in Paisley v. Darwin, the State Treasurer resumed distribution of multi-state lottery game proceeds to the Public Transportation Fund in Maricopa County in Fiscal Year To date, the Legislature has not enacted any statute that would supersede the court order and Valley Metro Regional Public Transportation Authority ( RPTA ) continues to receive monthly distributions of lottery revenues for public transportation purposes. Lottery revenues for FY2015 are estimated to be $11,262,600. Maricopa County and jurisdictions within the county that receive LTAF funding are required to use the funding for public transportation. There is no local match requirement for these funds. Public transit is defined as any service, vehicle(s), or support facility for a vehicle(s), intended for the purpose of conveying multiple passengers (i.e. typically 5 or more) and which meets applicable state and federal safety and accessibility laws, rules, and regulations. The definition also includes the planning and administrative support for such services. It is the intent of the program to provide funds for the purpose of providing transit service or facilities that is available to the following populations: The general public; Elderly persons; Persons with disabilities; Welfare recipients and low-income persons engaged in employment activities. Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

29 Funding will be distributed directly to eligible jurisdictions in the county and includes Maricopa County, and cities and towns within the county. In the case of private, not-for-profit agencies and private, for-profit transit providers, the city receiving the LTAF funding must enter into an agreement with the proposed operator to provide the transportation service approved by the city council. The agreement, accompanied by council resolution, must be available to Valley Metro RPTA as evidence of the agreement. DISCUSSION To receive the funds allocated to Maricopa County communities, jurisdictions must apply annually. In FY 2015, Apache Junction will receive $867. An application was submitted to the Valley Metro Regional Public Transportation Authority. RECOMMENDATION Staff respectfully recommends the city council approve Resolution No recommending the city s Fiscal Year 2015 Local Transportation Assistance Fund II allocation be directed to the Apache Junction Active Adult Center for support of transportation services and authorizing the mayor to sign a pass-through agreement. ACTION REQUIRED Consideration for approval under the consent agenda. Attachment 1: Resolution Number Attachment 2: Grant pass-through agreement between the City of Apache Junction and East Valley Adult Resources. Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

30 RESOLUTION NO PAGE 1 OF 2 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE VALLEY METRO REGIONAL PUBLIC TRANSPORTATION AUTHORITY FOR PARTICIPATION IN ITS FISCAL YEAR 2015 LOCAL TRANSPORTATION ASSISTANCE FUND II PROGRAM. WHEREAS, the City of Apache Junction is desirous of meeting the transportation needs of its citizens; and WHEREAS, East Valley Senior Adult Resources, Inc., which manages the Apache Junction Active Adult Center, has requested assistance from the City in meeting the transportation needs of senior citizens residing within the City limits; and WHEREAS, pursuant to Arizona Revised Statutes Section , et seq., the Valley Metro Regional Public Transportation Authority ( RPTA ) is administering the Local Transportation Assistance Fund (hereinafter LTAF ) II Program; and WHEREAS, the activities within this grant address identified community needs; and WHEREAS, a grantee of LTAF II funds is required to comply with the program guidelines and federal statutes and regulations. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The Mayor and City Council of the City of Apache Junction authorize application to be made to the RPTA for Fiscal Year 2015 LTAF II funds. 2) The City Manager or his designee is authorized to sign an application for receipt and use of these funds in an amount not to exceed $ for East Valley Adult Resources, Inc. for its transportation program for the Apache Junction Active Adult Center. 3) The City Manager or his designee, is authorized to take all actions necessary to implement and complete the activities submitted in said grant. 4) The application for Maricopa County LTAF II funds meets the program requirements for the transportation of senior

31 citizens, persons with disabilities and/or the general public. 5) The City of Apache Junction shall comply with all LTAF II guidelines, federal statutes and regulations applicable to the LTAF II Program. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF, SIGNED AND ATTESTED TO THIS DAY OF, JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney RESOLUTION NO PAGE 2 OF 2

32 When recorded return to: Richard Joel Stern, Esq. Apache Junction City Attorney 300 East Superstition Blvd. Apache Junction, AZ FISCAL YEAR 2015 GRANT PASS THROUGH AGREEMENT BETWEEN THE CITY OF APACHE JUNCTION AND EAST VALLEY ADULT RESOURCES THIS GRANT PASS THROUGH AGREEMENT (the Agreement ) is made as of the day of 2015, by and between CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation ( City ) and East Valley Adult Resources, a nonprofit agency ( EVAR ). City and EVAR are sometimes referred to herein collectively as the Parties, or individually as a Party. RECITALS A. EVAR is a nonprofit organization which provides social, recreational, fitness, advocacy, and transportation services at the Apache Junction Active Adult Center for Apache Junction residents. B. EVAR desires to utilize Local Transportation Assistance Fund II ( LTAFII ) funding for transportation services in Apache Junction. C. The Valley Metro Regional Public Transportation Authority ( RPTA ) desires to convey to City a portion of its annual allocation required to be paid to local governments for the benefit of public transportation, pursuant to a court order filed in Paisley v. Darwin, U.S. Dist. Ct (Ariz.), No. CV PHX-DGC, 2011 WL , resuming distribution of multi-state lottery game proceeds to the Public Transportation Fund in Maricopa County, for disbursement by City to EVAR. D. City desires to disburse the aforementioned contribution to the EVAR and to set forth the mutual understandings between City and EVAR. E. There is a need for mutual cooperation for a pass through of grant funds from RPTA to City and ultimately to East Valley Adult Resources. F. Mutual cooperation would result in EVAR s obtaining assistance from City, which translates to public savings. 1

33 G. The Parties have mutual interests in this project and wish to enter into this Agreement with certain terms and conditions. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual promises and covenants set forth herein, and for other consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows: 1. ACCURACY OF THE RECITALS: The Parties hereby confirm the accuracy of the Recitals set forth above, which are incorporated herein by this reference. 2. CITY S OBLIGATIONS: City agrees to do all of the following: a. Disburse the aforementioned RPTA contribution to EVAR. b. Review copies of all reports and documents sent to the RPTA by EVAR related to funded project. 3. EVAR S OBLIGATIONS: EVAR agrees to do all of the following: a. Hold harmless the City of Apache Junction and its agents for any acts or omissions by City, its elected officials, appointees, and employees. b. Provide to the City of Apache Junction a copy of all reports and documents sent to the RPTA related to funded project no later than 30 days after their submission to RPTA. 4. Purpose. The purpose of this Agreement is to set forth the rights and responsibilities of the Parties with respect to the acceptance and distribution of the contribution to EVAR. 5. Funding Schedule. RPTA shall deliver a one-time payment of $ to the City for disbursement to EVAR for the provision of transportation services at the Apache Junction Active Adult Center ( Center ). The purpose of the contribution is to provide City residents with transportation to the Center, Center Programs, local medical appointments, and local shopping hubs. 6. Term. The Term of this Agreement is one calendar year from the execution date. 2

34 7. Indemnification and Hold Harmless. EVAR shall indemnify, defend and hold harmless the City, its Mayor and City Council, appointees, employees and agents from and against any and all suits, actions, legal or administrative proceedings, claims, demands, liens, losses, fines or penalties, damages, liability, interest, fees for attorneys, consultants and accountants or costs and expenses of any kind and nature, resulting from or arising out of the negligence or willful misconduct of City, its Mayor and City Council, appointees, employees and agents in performing the duties set forth in this Agreement. 8. Transactional Conflicts of Interest. The Parties acknowledge that this Agreement is subject to cancellation pursuant to the provisions of A.R.S Waiver. No waiver, whether written or tacit, of any remedy or provision of this Agreement shall be deemed to constitute a waiver of any other provision hereof or a permanent waiver of the provision concerned, unless otherwise stated in writing by the Party to be bound thereby. 10. Severability. City and RPTA each believe that the execution, delivery and performance of this Agreement are in compliance with all applicable laws. However, in the unlikely event that any provision of this Agreement is declared void or unenforceable (or is construed as requiring City to do any act in violation of any applicable laws, including any constitutional provision, law, regulation, or City Code), such provision shall be deemed severed from this Agreement and this Agreement shall otherwise remain in full force and effect; provided that this Agreement shall retroactively be deemed reformed to the extent reasonably possible in such a manner so that the reformed agreement (and any related agreements effective as of the same date) provide essentially the same rights and benefits (economic and otherwise) to the Parties as if such severance and reformation were not required. Unless prohibited by applicable laws, the Parties further shall perform all acts and execute, acknowledge and/or deliver all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed. 11. No Third Party Beneficiary Rights. The Parties agree that no third party rights attach to this agreement. 12. Applicable Law and Venue: The terms and conditions of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona. Any action at law or in equity brought by either party for the purpose of enforcing a right or rights provided for in this Agreement, shall be tried in a court of competent jurisdiction in Pinal County, State of Arizona. The Parties hereby waive all provisions of law providing for a change of venue in such proceeding to any other county. In the event either party shall bring suit to 3

35 enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition in this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs including: all litigation and appeal expenses, collection expenses, reasonable attorneys fees, necessary witness fees and court costs to be determined by the court in such action. 13. Indemnification: To the fullest extent permitted by law, Consultant shall defend, indemnify and hold harmless City, its elected and appointed officers, officials, agents, and employees from and against any and all liability including but not limited to demands, claims, actions, fees, costs and expenses, including attorney and expert witness fees, arising from or connected with or alleged to have arisen from or connected with, relating to, arising out of, or alleged to have resulted from the acts, errors, mistakes, omissions, work or services of Consultant, its agents, employees, or any tier of Consultant s subcontractors in the performance of this Agreement. Consultant s duty to defend, hold harmless and indemnify City, its Special Districts, elected and appointed officers, officials, agents, and employees shall arise in connection with any tortious claim, damage, loss or expense that is attributable to bodily injury, sickness, disease, death, or injury to, impairment, or destruction of property including loss of use resulting therefrom, caused by an Consultant s acts, errors, mistakes, omissions, work or services in the performance of this Agreement including any employee of Consultant, any tier of Consultant s subcontractor or any other person for whose acts, errors, mistakes, omissions, work or services Consultant may be legally liable. 14. Notices: Except as otherwise required by law, any notice required or permitted under this Agreement shall be in writing and shall be given by personal delivery, or by deposit in the United States mail, certified or registered, return receipt requested, postage prepaid, addressed to the Parties at their respective addresses set forth below, or at such other address as a Party may designate in writing pursuant to the terms of this Section, or by telecopy or telefacsimile machine, or by any nationally recognized express or overnight delivery service (e.g. Federal Express or UPS), delivery charges prepaid: If to City: If to EVAR: City of Apache Junction Attn: City Manager 300 E. Superstition Blvd. Apache Junction, Arizona Telephone: (480) Facsimile: (480) East Valley Adult Resources Attn: Executive Director 45 West University Suite A - Mesa, Arizona

36 Telephone: (480) Facsimile: (480) IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. EAST VALLEY ADULT RESOURCES, an Arizona nonprofit organization By: Dan Taylor Its: President and CEO CITY OF APACHE JUNCTION, ARIZONA, an Arizona municipal corporation ATTEST: By: John S. Insalaco Its: Mayor By: Kathy Connelly, City Clerk APPROVE AS TO FORM: By: Richard J. Stern, City Attorney 5

37 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 4. File ID: Sponsor: Heather Patel Index: Community Infrastructure Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of approval of Resolution No , committing local funds as leverage for a Fiscal Year 2014 State Special Project application. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

38 City of Apache Junction Development Services Department DATE: January 7, 2015 TO: THROUGH: FROM: SUBJECT: The Honorable Mayor and City Council George Hoffman, City Manager Larry Kirch, Development Services Director Roger Hacker, Revenue Resources Manager Heather Patel, Grants Coordinator Resolution No , committing local funds as leverage for a Fiscal Year 2014 State Special Project application. REQUEST The mayor and city council shall consider proposed Resolution No , committing local funds as leverage for a Fiscal Year 2014 ( FY14 ) State Special Project ( SSP ) application. BACKGROUND The City of Apache Junction is submitting an application for FY14 SSP funds in which the city may request up to $300,000 to be used over a two year period of time. These funds are a statewide competitive grant. The city may retain up to 18% of these funds for administrative costs. The application due date is February 19, In conjunction with the Fiscal Year 2014 Community Development Block Grant ( CDBG ) application, city staff conducted the required public participation process and held public meetings on October 1, 2013 and November 19, The city council approved under Resolution No , the submittal of a grant application for the FY14 SSP program for phase two of improvements to the Pueblo del Sol neighborhood. DISCUSSION As part of the application requirements for submission of an SSP application, a resolution is required if local funds are committed to the project. Under the SSP program, leverage funding is ranked and rated higher when applications are being reviewed. The resolution binds the city to leverage funding if the submitted applications as identified in Resolution No are awarded. Should the application (s) be denied, the city is not liable for these funds. The following budget is proposed: Project administration = $30,000 (grant) Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

39 Project construction = $270,000 (grant) Project construction = $30,000 (leverage) RECOMMENDATION Staff respectfully recommends the city council approve Resolution No , committing local funds as leverage. ACTION REQUIRED Consideration for approval under the consent agenda. Attachment One: Resolution No Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

40 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, COMMITTING LOCAL FUNDS AS LEVERAGE FOR FY 2014 STATE SPECIAL PROJECTS ( SSP ) APPLICATION (S). WHEREAS, the City of Apache Junction has adopted Resolution No which authorizes submission of an application(s) to the State of Arizona Department of Housing ( ADOH ) for SSP Funding; and WHEREAS, that application (s) indicates that $30,000 will be committed by the City of Apache Junction as leveraged funds, in the form of cash or resources to be used to complete the project; and WHEREAS, the CDBG Program requires that all local leveraged funds/resources be committed in the form of a resolution by the governing body, and that such a commitment contain an opinion by the applicant's legal counsel that the leveraged funds represent a binding commitment, legally enforceable under State law. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The mayor and city council hereby commit $30,000 in funds and resources to the FY13 SSP Program, to be used for project costs, contingent upon the receipt of the grant assistance. 2) That the mayor and city council of the City of Apache Junction hereby find that this commitment is legally binding based on the legal opinion of the city attorney, and that such funds will be available for an audit at the termination of the grant, if so required by ADOH. RESOLUTION NO PAGE 1 OF 2

41 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THIS DAY OF SIGNED AND ATTESTED TO THIS DAY OF ATTEST: JOHN S. INSALACO Mayor KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney RESOLUTION NO PAGE 2 OF 2

42 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 5. File ID: Sponsor: Heather Patel Index: Community Development Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of approval of Resolution Nos (Authority to submit), (Committment of local funds), and (Adoption of Housing Rehabilitation Guidelines) regarding the submission of a Fiscal Year State Housing Fund grant application. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

43 City of Apache Junction Development Services Department DATE: January 7, 2015 TO: THROUGH: FROM: SUBJECT: The Honorable Mayor and City Council George Hoffman, City Manager Larry Kirch, Development Services Director Roger Hacker, Revenue Resources Manager Heather Patel, Grants Coordinator Resolution Nos , 15-04, and regarding the submission of a Fiscal Year State Housing Fund grant application. REQUEST The mayor and city council shall consider proposed Resolution Nos , 15-04, and regarding the submission of a Fiscal Year State Housing Fund grant application. 1) Resolution No (Authority to Submit); 2) Resolution No (Commitment of Local Funds); and 2) Resolution No (Adoption of Housing Rehabilitation Guidelines). The resolutions are mandatory components of the city s proposed Fiscal Year State Housing Fund ( SHF ) grant application. BACKGROUND Since 1985, the City of Apache Junction has utilized a variety of funding sources to offer a Housing Rehabilitation Program ( HRP ) for local home owners. The city began using SHF funds in Since 1985, the city has invested nearly $4 million in grant funds to address housing rehabilitation needs for over 228 owner occupied homeowners. DISCUSSION The Arizona Department of Housing ( ADOH ) has announced the next cycle of funding for owner occupied housing rehabilitation programs. Completed applications are due on March 20, If approved by council, Apache Junction will request $275,000 in owner occupied housing rehabilitation funds to complete the rehabilitation of seven owner- occupied residential properties. As part of the city s application, resolutions are mandated by ADOH. The attached resolutions meet the requirements of the SHF guidelines. The required resolutions are: Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

44 1) authorizing the submission of an application; 2) committing local funds as leverage to the project; and 3) adopting the community s Housing Rehabilitation Guidelines Resolution No authorizes the submission of a grant application. Resolution No reflects leverage funds allocated to the Fiscal Year SHF application. The state requires leverage funds in the form of cash in order to rank and rate each application for funding. The city will provide $28,000 as leverage to the project for payment of construction services and other related costs. The funding set aside for leverage will be allocated within the FY15-16 budget under non-departmental grant leveraging. Resolution No reflects changes to the city s Housing Rehabilitation Guidelines. These changes have been updated to reflect changes required by ADOH and how the city s program has developed over the years. Below is a brief description of those proposed changes, excluding minor grammatical and clarification changes. The changes may be found highlighted within the guidelines: 1) The city is not permitted to use applicant s assets to determine their eligibility for the program. 2) Americans with Disabilities Act standards for construction have been added as required by the state. 3) It is no longer permitted for site built homes to replace manufactured homes. 4) The city was required to include a clause regarding the relocation of homeowners should the need arise. 5) It is not required HVAC contractors be BPI certified. 6) A post audit is completed on each home as an additional measure to ensure proper construction was completed on the home. RECOMMENDATION Staff respectfully recommends the city council approve Resolution Nos , 15-04, and ACTIONS REQUIRED Consideration for approval under the consent agenda. Attachment 1: Resolution No Attachment 2: Resolution No Attachment 3: Resolution No including final revised HRGs Attachment 4: Housing Rehabilitation Guidelines including proposed revisions Planning & Zoning Building & Safety Revenue Development 300 E. Superstition Boulevard Apache Junction, AZ Ph: (480) Fax (480)

45 RESOLUTION No A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE SUBMISSION OF AN APPLICATION (S) FOR STATE HOUSING FUNDS, WHICH MAY INCLUDE FEDERAL FUNDING THROUGH THE HOME INVESTMENT PARTNERSHIP PROGRAM OR STATE HOUSING FUNDS, CERTIFYING THAT SAID APPLICATION (S) MEET THE COMMUNITY S HOUSING AND COMMUNITY DEVELOPMENT NEEDS AND THE REQUIREMENTS OF THE STATE HOUSING PROGRAMS, AND AUTHORIZING ACTIONS NECESSARY TO IMPLEMENT AND COMPLETE THE ACTIVITIES OUTLINED IN SAID APPLICATION (S). WHEREAS, the City of Apache Junction is desirous of continuing affordable housing development activities; and WHEREAS, the State of Arizona is administering the State Housing Fund Program; and WHEREAS, the State Housing Fund requires that State Housing Funds benefit low income households; and WHEREAS, the activity in the application addresses the community s low income population housing needs; and WHEREAS, a recipient of State Housing Funds is required to comply with the program guidelines, State and Federal Statutes and regulations. NOW, THEREFORE, BE IT RESOLVED THAT BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The Mayor and City Council of the City of Apache Junction authorize applications to be made to the State of Arizona for funding from the State Housing Fund; 2) Mayor John S. Insalaco is authorized to sign applications and contracts or grant documents for receipt and use of these funds; 3) Mayor John S. Insalaco is authorized to take all actions necessary to implement and complete the activities submitted in said applications; and RESOLUTION NO PAGE 1 OF 2

46 4) The Mayor and City Council of the City of Apache Junction will comply with all State Housing Fund Program Guidelines, State and Federal Statutes and regulations applicable to the State Housing Fund Program (HOME program and/or State Housing Trust Fund) and the certifications contained in the (these) application(s). PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION THIS DAY OF SIGNED AND ATTESTED TO THIS DAY OF ATTEST: JOHN INSALACO Mayor KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney RESOLUTION NO PAGE 2 OF 2

47 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA COMMITTING LOCAL FUNDS AS LEVERAGE FOR A FY STATE HOUSING FUND APPLICATION. WHEREAS, the City of Apache Junction has adopted Resolution No which authorizes submission of an application(s) to the State of Arizona, Department of Housing ( ADOH ) for State Housing Fund ( SHF ) funds for FY ; and WHEREAS, that application indicate that $28,000 will be committed by the City of Apache Junction as leveraged funds, in the form of cash or resources to be combine with State funds to complete the program; and WHEREAS, the SHF Program requires that all local leveraged funds/resources be committed in the form of a resolution by the governing body, and that such a commitment contain an opinion by the applicant's legal counsel that the leveraged funds represent a binding commitment, legally enforceable under State laws. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The Mayor and City Council hereby commit $28,000 in funds and resources to the SHF Program, to be used for project costs, contingent upon the receipt of the FY SHF assistance. 2) That the Mayor and City Council of the City of Apache Junction hereby find that this commitment is legally binding based on the legal opinion of the City attorney, and that such funds will be available for an audit at the termination of the grant, if so required by ADOH. RESOLUTION NO PAGE 1 OF 2

48 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF, 2015 SIGNED AND ATTESTED TO THIS DAY OF, JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney RESOLUTION NO PAGE 2 OF 2

49 RESOLUTION NO A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AUTHORIZING THE ADOPTION OF OWNER OCCUPIED HOUSING REHABILITATION GUIDELINES DATED FEBRUARY 1, 1994, AS AMENDED, IN RELATION TO A HOUSING REHABILITATION ACTIVITY. WHEREAS, the City of Apache Junction, Arizona, is desirous of continuing an owner-occupied housing rehabilitation program; and WHEREAS, this program is anticipated to be funded with funds provided by the State of Arizona Department of Housing ( ADOH ); and WHEREAS, ADOH requires that every local government requesting funds for housing rehabilitation adopt specific guidelines for such a program; and WHEREAS, the City of Apache Junction has developed such owner-occupied Housing Rehabilitation Guidelines ( HRGs ) dated February 1994, as amended, which have been previously approved by ADOH. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS: 1) The City Council of the City of Apache Junction, Arizona, hereby adopts such owner-occupied HRGs, dated February 1994, as amended in Attachment A, which shall be used to implement its housing rehabilitation program; and 2) The City of Apache Junction, Arizona, shall utilize such owner-occupied HRGs, without revisions, except those authorized by the Mayor. Such revisions shall be submitted to ADOH by the City 10 working days before such amended guidelines are effectuated. RESOLUTION NO PAGE 1 OF 2

50 PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS DAY OF, SIGNED AND ATTESTED TO THIS DAY OF, JOHN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: RICHARD J. STERN City Attorney RESOLUTION NO PAGE 2 OF 2

51 CITY OF APACHE JUNCTION, ARIZONA HOUSING REHABILITATION PROGRAM GUIDELINES As Adopted by the City Council on February 1, 1994 Modified by the City Council on January 17, 1995 Addendum by the City Council on March 21, 1995 Modified by the City Council on June 20, 1995 Modified by the City Council on March 7, 2000 Modified by the City Council on May 15, 2001 Modified by the City Council on February 5, 2002 Modified by the City Council on January 16, 2007 Modified by the City Council on June 5, 2007 Modified by the City Council on November 18, 2008 Modified by the City Council on December 15, 2009 Modified by the City Council on December 6, 2011 Modified by the City Council on January 15, 2013 Modified by the City Council on April 1, 2014 Modified by City Council on January 20, 2015 The city council of the City of Apache Junction adopts the following Housing Rehabilitation Guidelines to assist the city in administering the city s Housing Rehabilitation Program. This program is intended to provide safe and decent housing to City of Apache Junction residents by offering funding options to assist homeowners with the rehabilitation or modification of their home. PROGRAM PURPOSE (GOALS) 1. Eliminate health and safety hazards in homes; 2. Benefit very low-, low- and moderate-income residents; and 3. Improve neighborhoods and encourage stability. City of Apache Junction Housing Rehabilitation Program Guidelines, page 1 of 30

52 TABLE OF CONTENTS Program Purpose and Goals 1 Program Design 3 Target Area 3 Eligibility Requirements 3 Property Standards 6 Allowable Work Items 6 Non-allowable Work Items 8 Rehabilitation Assistance Plans 8 Emergency Housing Repair 8 Housing Accessibility 8 Housing Rehabilitation 9 Replacement 9 Permit Fee Fund 9 Deferred Payment/Forgivable Loans 11 Exceptions to the Maximum Allowed 11 Recapture Period 11 Loan Servicing Policy/Subordination 12 Revolving Loan Fund/Program Income 12 Third Party Income Verification 12 Method for Determining After Rehab Value 13 Homeowner Information 14 Contractor Information 17 Housing Maintenance and Homeowner Education 23 Energy Efficiency Guidelines 23 Lead Based Paint Requirements 23 Conflict of Interest 24 Complaint and Grievance Procedures 25 Marketing 27 Staffing and Administrative Review 28 Non-Discrimination 28 Assistance to Applicants 28 Fair Labor Standards 29 Applicable Documents 29 Changes to Program Guidelines 29 Forms 29 City of Apache Junction Housing Rehabilitation Program Guidelines, page 2 of 30

53 PROGRAM DESIGN The focus of the Housing Rehabilitation Program (hereinafter HRP ) is to increase the life and improve the livability of homes owned by very low-, low- and moderateincome families by correcting code violations, solving health and safety issues, addressing accumulated deferred home maintenance projects, and providing sustainability by weatherizing homes. Funds for the program are primarily provided through the: 1) Community Development Block Grant Program ( CDBG ) and 2) State Housing Fund ( SHF ) including HOME and State Housing Trust Funds as administered by the Arizona Department of Housing ( ADOH ). Owner-occupied housing rehabilitation ( OOHR ) assistance to homeowners in the SHF funded portion of the city s HRP may be in the form of deferred payment/forgivable loans. OOHR assistance to homeowners in the CDBG funded portion of the city s HRP may be in the form of grants or deferred payment/forgivable loans. Unless specifically stated to the contrary, comments contained in these guidelines are applicable to both the CDBG and SHF funded portions of the city s HRP. TARGET AREA The program will be open to all full-time permanent residents who live within the incorporated boundaries of the City of Apache Junction, excluding those who live in designated ineligible areas or structures as outlined in the eligibility requirements below. CDBG funds may only be used in the Pinal County portion of the city. ELIGIBILITY REQUIREMENTS To be eligible, the applicant and the property to be rehabilitated must meet the following criteria: Located within the incorporated boundaries of the City of Apache Junction, excluding the Maricopa County area. Feasible for rehabilitation under the time and monetary constraints of the program. Owned and occupied by a full-time permanent resident of Apache Junction. Applicants must have a verifiable income that falls below 80% of the area median income as indicated by The US Department of Housing and Urban Development and the State of Arizona State Housing Fund Program income City of Apache Junction Housing Rehabilitation Program Guidelines, page 3 of 30

54 limits for very low-, low- and moderate-income families. Income guidelines are updated annually. Income verification is valid for a period of six (6) months. Upon expiration of income verification information, applicants must complete and submit new income verification documentation. Income must be anticipated and verifiable for the next 12 months. Required documentation of income can be found under Third Party Income Verification within this document. Provide proof of homeowner s insurance. For the purposes of eligibility, self-help or sweat equity are not allowable forms of equity. The current owner must have occupied the structure for at least one (1) year prior to program entry. Preference will be given to households applying for funding that meet one of the following criteria: 1) be elderly (62 years of age or older); 2) have a disability (a legally recognized physical/mental/emotional condition that limits the performance of daily living skills); or 3) have minor child (ren) age 17 and under related to head of household residing in the residence. A.R.S and requires that all homeowners who receive services under the program shall provide proof of lawful presence in the United States including a sworn affidavit that the required documentation is true under penalty of perjury. Owner is to complete any recent construction project underway prior to the city s approval of rehabilitation assistance. Manufactured and mobile homes are deemed eligible contingent upon: 1) applicant (s) having owned and occupied both property and dwelling for one (1) year prior to program entry; and 2) the home being permanently attached to a foundation, either as a pre-existing condition or as a work element of the HRP. Properties in non-conforming zoning, properties located within 1,000 feet of an explosive/flammable operation, properties with open, unresolved building or code compliance cases and homeowners unwilling to follow the City of Apache Junction Program Guidelines, are not generally eligible for rehabilitation under this program. Homes of historical value may only be eligible upon favorable review by the State Historic Preservation Office. Manufactured homes that were built before June 1976 are not eligible to City of Apache Junction Housing Rehabilitation Program Guidelines, page 4 of 30

55 receive housing rehabilitation funding, however they are eligible for emergency and housing accessibility assistance. The rehabilitation of dwellings located in the 100-year floodplain are not eligible for participation in the rehabilitation program. Properties that are classified non-conforming are not generally eligible for rehabilitation. However, if the proposed rehabilitation is non-structural and there are no properties waiting to be rehabilitated, nonconforming properties that meet all other eligibility criteria may be considered. Properties with an open building or code case are generally not eligible for rehabilitation. However if the case is relating to a correctable building condition HRP funds can correct under the requirements of the program, then the unit will be deemed eligible. Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments. Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property. Mortgage payments and insurance premiums must all be current. Is the home located within the city limits of Apache Junction? Is there someone who is over the age of 62, under the age of 18, or disabled living in the home? Are you a US Citizen? Are you a full time permanen t resident? Do you have homeowners Insurance? Are you low income and willing to provide documentatio n of income? Click here to view the income limits for program eligibility. Do you own your home and land? Have you owned and lived in your home for one year? Is the home located outside of a floodplain? If you have answered yes to all of the questions, CONGRATULATI ONS,YOU MAY QUALIFY! PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by the most recent state and local building codes, the Federal City of Apache Junction Housing Rehabilitation Program Guidelines, page 5 of 30

56 Housing Quality Standards, Arizona Department of Housing s Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards, the City of Apache Junction Housing Rehabilitation Program Construction Guidelines, the Uniform Federal Accessibility Standards and the Americans with Disabilities Act, as applicable and needed by the homeowner. The city s Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. ALLOWABLE WORK ITEMS HOME guidelines require an entire dwelling be brought up to local code. A preliminary property inspection is completed to assist with ensuring homes meet Housing Quality Standards ( HQS ) and are safe, sanitary and decent. Priorities have been established for determining the work that will be completed in the eligible homes. 1. Code Violations 2. Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1. The age and the physical condition of the building; 2. The goal of the program (building revitalization or direct benefit); 3. Funds available for rehabilitation of each unit; and 4. Value of unit after rehabilitation. The following levels are utilized to determine priorities for the HRP: Level 1: Initial inspection reports must include items in Level 1. Level 2: Items included on Level 2 are also considered critical but not as critical as those items in Level 1. Other items are considered less critical and should always be inspected but may not be rehabilitated. Level 3: The items on List 3 should be reviewed, and where feasible, corrected. These items must also be included whenever substantial rehabilitation is taking place. City of Apache Junction Housing Rehabilitation Program Guidelines, page 6 of 30

57 Items from all levels must be included in the preliminary inspection report for all construction projects and those where the cost of rehabilitation exceeds 75% of the value of the property. Level 1 - Items that must be included in the inspection report and must be repaired or replaced: 1. Lead Based Paint Assessment (only on properties built prior to 1978) 2. Hazardous Materials 3. Health and Safety Hazards 4. Stable and Weather Tight Roof 5. Electrical System the unit must have a minimum 100-amp electrical service, with no unsafe conditions 6. Plumbing (including hot water) Must be in good working order and be safe and sanitary 7. Heating and Cooling Systems must be adequate and safe with a reasonable (three year) useful life 8. Egress in accordance with local health and safety codes 9. Trip Hazard (HQS Standard) Level 2 - Items that must be included in the inspection report and should be repaired or replaced: 1. Structural soundness and integrity (including rotted or deteriorating materials and those impacted by termites and/or other wood-boring insects). 2. Siting of the structure and its relationship to water penetration that may impact structural integrity. 3. Appropriate kitchen facilities including a sink and means of cooling and heating food to healthful standards. 4. If the structure has an attached garage, appropriately-rated fire wall between garage and living areas 5. Weatherization items. The above mentioned items are first priority items that shall be included in every inspection report. These items shall also be included in the Work Write-Ups (funds permitting) and shall receive priority in work to be completed as part of the rehabilitation project. Repair or replacement may take place based on the amount of available resources. Level 3 - Items that must be included in the inspection report and may be repaired or replaced: 1. Debris that may be a fire hazard 2. All existing exposed surfaces painted or sealed and not presenting a health or safety hazard. 3. Cabinetry City of Apache Junction Housing Rehabilitation Program Guidelines, page 7 of 30

58 4. Finished flooring 5. Repair and replacement of doors and windows not presenting a health or safety hazard. The above mentioned items shall be included in every inspection report and may be included in the Work Write-Up (funds permitting). These items generally result from deferred maintenance and are considered general improvements. The City wishes to encourage contractors to buy locally whenever possible. NON ALLOWABLE WORK ITEMS None of the program funds shall be used for temporary/long term relocation of applicants during periods of home rehabilitation/repair. No funds shall be used to reimburse the homeowner for work completed. REHABILITATION ASSISTANCE PLANS 1. EMERGENCY/MINOR HOUSING REPAIR PLAN A grant plan that assists homeowners in the elimination of an imminent threat to life, safety or health; the necessary repairs may include, but shall not be limited to: roofs, floor repairs, window/door replacements, and wall and ceiling repairs. The minimum assistance is $1,000 and the maximum assistance is $15,000 per recipient. The grant may address no more than two (2) emergency conditions, unless approved by the Development Services Director, or his/her designee, due to some extenuating circumstances. A structure may be eligible for an Emergency Grant even though it may not meet structural integrity requirements. After a recipient has received services through the Emergency Housing Repair program they may not be eligible to receive additional services until five years after the completion of the project unless the emergency services enable the homeowner to remain in their home until the home can be rehabilitated under the city s Housing Rehabilitation Plan or replaced under the city s Replacement Plan. Additionally, no single owner of a home may receive more than two emergency assistance grants. 2. HOUSING ACCESSIBLITY PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to make their residence physically accessible. Assistance can be either structural changes or purchase of durable medical equipment (if it becomes a permanent part of structure) and may include ramps, grab bars, handrails, raised toilets, lowered light switches, automatic door openers, visual alarms, transfer shower benches, and hand held showers. Grants are limited to $2,500 per recipient. This program is offered through the city s partnership with Community Action Human Resources Agency (CAHRA) or may be a component of another rehabilitation plan. City of Apache Junction Housing Rehabilitation Program Guidelines, page 8 of 30

59 3. HOUSING REHABILITATION PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to address safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may either be major or minor. Grants and deferred payment/forgivable loans are limited to a minimum of $1,000 and a maximum as required by the grant from which the funds will be expended, this amount may change each funding year. Mobile/manufactured homes and conventional, site-built homes have different maximum investments. HOME funds cannot be utilized in the form of a grant. In the HOME Program, weatherization, emergency repairs, or accessibility projects may be undertaken only if the property is brought up to the State s rehabilitation standards upon completion. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. However, should the recipient receive any housing rehabilitation services in the form of a grant, they may not be eligible to receive additional services until five years after the completion of the project. 4. REPLACEMENT PLAN A grant or deferred payment/forgivable loan plan that assists homeowners with the replacement of unsafe, hazardous living conditions by providing a new manufactured or site-built home. This plan provides a maximum investment as stipulated within each grant from which the funds will be expended. This amount may change each funding year and is intended for the construction of a new home or for the replacement of a manufactured home. Manufactured homes may not be replaced with site built homes. HOME funds cannot be utilized in the form of a grant. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. The city will make every effort to eliminate or reduce the need for relocation during construction. Homeowners may be encouraged to find temporary housing with family or friends. In the event that no options exist, the city may use grant funds to pay for temporary accommodations. 5. PERMIT FEE FUND In 2003, the City of Apache Junction created a revenue fund ( ) in order to track and collect permit fees that have been paid for by contractors that are participating in the City s Housing Rehabilitation Program. The fees that were collected were to be used to supplement and support the activities of the City s Housing Rehabilitation Program. These fees are collected in accordance with the City of Apache Junction City Code, Volume I, Chapter 7, Article 4-4 Sections A through I. City of Apache Junction Housing Rehabilitation Program Guidelines, page 9 of 30

60 All relevant fees shall be due payable by the contractor prior to the start of construction on any City of Apache Junction housing rehabilitation project. These fees will be tracked by the Housing Rehabilitation Program Coordinator ( HRPC ) and reported to the Finance Director for deposit into the appropriate revenue account. This account will be tracked to ensure accurate balance and expenditures. Eligible expenses to be withdrawn from this account shall be minor repair items that are eligible under the City of Apache Junction s Housing Rehabilitation Program and the adopted Housing Rehabilitation Guidelines. Recipients of these funds, however, must be homeowners that are not eligible under the same guidelines or available funding programs. These repairs must be determined an emergency by the Program Coordinator. Further, the Coordinator must have found that there is no other funding or community assistance can be located for the homeowner. Eligible homeowners must be either elderly (over the age of 62), disabled, or have children under the age of 18 occupying the home and the total household income must not exceed 80% of the area median income. When an expense is determined to be eligible to be charged to this account, the Coordinator will submit a check request along with an invoice for payment to the finance department. The maximum amount payable toward any project shall be $1,000 unless otherwise approved by the Development Services Director. Replacement A Replacement may be provided to homeowners when the cost to rehabiltate their home exceeds the maximum investment allowable. Replacement homes will be site built homes, where zoning allows for such construction. Manufactured homes may be used as a replacement in areas where zoning does not allow for site built homes. A lien is placed on the home for the extent of the recapture period which is based upon the total investment amount. Emergency Rehabilitation Eligible Homes 1) Single family homes, manufactured homes, condos, and townhomes; 2) Pre 1976 manufactured homes; 3) Manufactured homes affixed to a foundation; 4) Homes with encumbrances e.g. reverse mortgage and liens excluding a first mortgage. Eligible Items 1) Acessibility improvements; 2) Health and safety improvements; 3) Limited to two improvements per grant. Assistance Provided Grant not to exceed $15,000 Limit assistance to two times per home Housing Rehabilitation Eligible Homes 1) Single family; 2) Post 1976 manufactured homes affixed to a foundation; 3) Condos and town homes; 4) Homes without embumbrances e.g. reverse mortgage and liens, excluding a first mortgage. Eligible items 1) Complete rehabilitation of home; 2) Address all code, health and safety items; 3) Incorporate energy efficiency improvements; 4) Accessibility items. Assistance Provided Deferred Payment Forgivable Loan Single family home maximum investment $60,000 Manufactured home maximum investment $20,000 No additional assistance during recapture period A lien is placed on the home for the extent of the recapture period which is based upon the total investment amount. City of Apache Junction Housing Rehabilitation Program Guidelines, page 10 of 30

61 DEFERRED PAYMENT/FORGIVABLE LOANS All deferred payment forgivable loans are secured by a lien and promissory note. A percentage of the total assistance provided on forgivable loans will be forgiven on the anniversary date of the execution of the recording of the loan instruments throughout the recapture period, provided that the dwelling unit continues to be occupied by the original occupant or an income qualified immediate family member. The unforgiven balance of the loan shall become due and payable upon the sale of the property. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property. HOME funds cannot be used in the form of a grant. The HRPC will be responsible for recording the required paperwork as determined by the loan. The lien will be recorded at the Pinal County Assessor s Office and will include applicable administrative costs and a contingency of 10% above the Contractor s Bid. The Deed of Trust will be placed on a tracking system by the HRPC who will track the loan calculating the amount of dollars that will be forgiven as each year passes until the loan has been completely forgiven as outlined in the HRGs. The HRPC will send a letter to the homeowner annually advising the homeowner of the status of their loan, identifying the amount forgiven and the amount that remains on the loan. The city will be no lower than the first position on the lien of the home or second if a financial institution held first position prior to the city recording the loan documents. A letter to the homeowner shall provide a reminder that the city cannot subordinate the loan. EXCEPTIONS TO THE MAXIMUM ALLOWED The Maximum investment for each project is stipulated under each grant program from which the funding is expended. This maximum may change with each funding year. However under no circumstance may the maximum per unit investment exceed that which is determined by the geographic area 221 (d) 3 per unit limits based on the number of bedrooms nor can the after rehabilitation value exceed the allowable amount set by HUD (see Method for Determining After Rehabilitation Value section below). RECAPTURE PERIOD When a recipient elects to receive assistance in the form of a deferred or forgivable loan, a recapture period applies. The recaptured period is based on the amount of funds invested in the assisted unit. Recipients may elect to have a recapture period that is longer than the required period. When a recipient receives a deferred 5 Years 10 Years 15 Years 30 Years Investment of $1,000 $15,000 Investment of $15,001 $40,000 Investment of $40,001 $75,000 Investment of $75,001 and over City of Apache Junction Housing Rehabilitation Program Guidelines, page 11 of 30

62 payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. LOAN SERVICING POLICY/SUBORDINATION After execution of the loan, subordination agreements with lending institutions will not be honored since such practice is lending of city credit in violation of State constitutional law. Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments. Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Should a refinancing request be made by the homeowner after the rehabilitation work has been completed and a lien has been placed on the structure and the request has been made prior to the end of the recapture period, the lien shall become due and payable upon refinancing to the city. Thus, should the refinance be cash out, the city will require payment in full of the lien. The city will be no lower than first position on the lien of the home. As noted above, the city cannot subordinate the loan in any manner. REVOLVING LOAN FUND/PROGRAM INCOME The City of Apache Junction does not currently have a revolving loan fund. Therefore the City will track all loans. In the event a house that has received services is sold prior to the end of the recapture period, the city will enforce the repayment of the loan in the amount that remains unforgiven. These funds will then be immediately circulated into the Housing Rehabilitation Program and will be utilized prior to the use of any new grant funds. However when utilizing HOME funds, any recaptured or repaid funds will be returned to the Arizona Department of Housing as retention of HOME funds is not allowed by the Arizona Department of Housing. THIRD PARTY INCOME VERIFICATION Upon receipt of the application, the HRPC will verify eligibility based upon the homeowners income. The definition of income is taken from 24 CFR Part 5. Gross Income will be used to calculate income for all members of the household over the age of 18. Income must be anticipated and verifiable for the next 12 months. Typical required documents to verify income will include, but are not limited to: 1. Bank Statements including checking and savings accounts; 2. Paycheck stubs including tips, commission and bonuses, and overtime; 3. Earned Interest and Assets: This amount is calculated into the income if over $5,000. Eligible assets include but are not limited to Value of Stock, Life City of Apache Junction Housing Rehabilitation Program Guidelines, page 12 of 30

63 Insurance, 401K, interest, CD s, Real Estate, Personal property not including home; 4. Social Security; 5. Welfare Assistance; 6. Alimony and Child Support ; 7. Minors Income specifically disability payments; 8. If self employed, must include the past three (3) years income tax returns for net income; 9. Excluded items include earned income from minors (under age 18), full-time student income (ages 18-23), disabled persons income, and food stamps Median Income Guidelines HUD updates the Median Income Guidelines on an annual basis. The most current information can be found on the US Department of Housing and Urban Development website. The city will utilize the HUD Income Calculator to determine income eligibility. METHOD FOR DETERMINING AFTER REHABILITATION VALUE Beginning August 23, 2013 HUD has established the HOME Maximum After Rehab Value Limits for owner occupied housing rehabilitation. These limits will remain in effect and are updated as HUD issues new limits. The new HOME value limit for existing housing to be used for owner occupied housing rehabilitation is 95 percent of the median purchase price for the area based on Federal FHA single family mortgage program data and other nation wide data on the sales of existing housing. To establish Project eligibility, after-rehabilitation value must be established prior to any work being performed. The after- rehabilitation value may be established by one or more of the following methods: 1. Estimates of value: Estimates of value by the subrecipient may be used. Project files must contain the estimate of value and document the basis by which the value estimates were derived. (For example, a Real Estate Broker s price opinion with supporting comparable sales.) Websites such as quizzle.com, zillow.com and trulia.com may be used to determine an estimated value. 2. Appraisals: Appraisals, whether prepared by a licensed fee appraiser or by a staff appraiser of the city, may be used. Project files must document the appraised value and the appraisal approach used. 3. Tax assessments: Tax assessments for a comparable property located in the same neighborhood may be used to establish the after-rehabilitation value if City of Apache Junction Housing Rehabilitation Program Guidelines, page 13 of 30

64 the assessment is current and accurately reflects market value after rehabilitation. HOMEOWNER INFORMATION Applications are available by mail, in the Development Services office, or obtained from the city s website at by the applicant. Eligible applicants will be prioritized on a first come, first served basis, unless the nature of the project constitutes an eminent threat to health or safety, as determined by the Building Inspector. STEP 1: Waiting List Once an application is approved and the homeowner is determined to be eligible to participate in the city s HRP, they will be placed on a waiting list. Homeowner s will be served based on two factors: 1. A First Come - First Serve Basis 2. Based upon the funding availability of the program with which they are eligible. The city has several housing programs. Based on their eligibility they may not qualify for all programs. Applicants can remain on the waiting list for up to 18 months or more before receiving assistance. The financial information provided with the application is valid for 6 months. Therefore homeowner s may be required to re-submit financial information to re-certify they are eligible to participate in the program. A typical timeline for services may be: Application is submitted Review of application (eligibility determination) Placed on waiting list Schedule initial meeting to discuss the program Schedule home inspection Determine work write up Procure contractor Signed documents/contracts Construction Final inspection 2 months up to 1 year 2 months 2 months 2 months 4 months 2 months 3 months 1 month STEP 2: Interview When the time has come to receive the benefits of the program an appointment will be scheduled to make a home visit to discuss the details of the program and sign an agreement. All homeowners must be present. City of Apache Junction Housing Rehabilitation Program Guidelines, page 14 of 30

65 There are two basic programs in which homeowner s may be eligible. It will be determined which program would best suit their needs once an inspection of the home is completed and a cost estimate is determined. Following are the two programs: 1. Emergency Rehabilitation: This program will address two emergency needs within the home. This program is provided in the form of a grant. Once a homeowner receives this service, they may not be eligible for additional assistance for five years. 2. Housing Rehabilitation: This program will address all the necessary needs within the home under the requirements of the program. Health and safety issues, code compliance and weatherization will be addressed. This program is provided in the form of a deferred payment loan which will place a lien on the property. A deferred payment loan means that over a given period of time, the loan will be forgiven so long as the homeowner remains in the home as their only and primary residence. Once they receive this service, they may not be eligible for additional assistance until the loan has been forgiven. This recapture period is dependent upon the amount of funds invested into the home. STEP 3: Home Inspection The city will complete an inspection on the home. This inspection will help to determine what items will need to be completed on the home. Below is information to help determine what items are eligible under the requirements of the program. We would like to: Eliminate unsafe and hazardous conditions; Improve living conditions and extend the life of the home; Make the home accessible for family members with special needs; Bring the home to minimum safe property standards and local codes; Improve property values in the neighborhood; and Improve energy efficiency. Areas we can provide help include: The program will NOT: Electrical Accessibility Change of colors or styles Plumbing Insulation Cover routine maintenance Heating/Cooling Foundation Make the home look like new Roofing Bath facilities Walls Kitchen facilities Painting Hot water Windows/Doors Smoke alarms If the home was built before 1978, a Lead Paint Inspection will be conducted by a qualified contractor, as identified by the city. City of Apache Junction Housing Rehabilitation Program Guidelines, page 15 of 30

66 An Energy Audit will be conducted by a BPI certified contractor, as identified by the city. Information provided by from the audit will assist the HRPC will creating a project scope. STEP 4: Work Write-up and Bid Process After the inspections are complete a work write-up and cost estimate are determined to assist with the procurement of a contractor. The homeowner must approve the project scope prior to procuring a contractor. Priorities have been established for determining the work that will be completed in the eligible homes. 1. Code Violations 2. Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1. The age and the physical condition of the building; 2. The goal of the program (building revitalization or direct benefit); 3. Funds available for rehabilitation of each unit; and 4. Value of unit after rehabilitation. It is required that all projects competitively procure a licensed contractor to complete the work on the home. The city will assist the homeowner in this process. The following is the process that will take place when procuring a contractor. A notice will be placed on the city s website and in the newspaper advertising a mandatory pre-bid meeting to be held at the home. Contractors will arrive on that day along with the HRPC and will walk through the home and the work write up will be discussed. Each contractor will be required to submit a bid to the City of Apache Junction s Office of the City Clerk on the date and time specified in the advertisement. The contractor is not allowed to discuss any compensation with the homeowner. If the contractor has any questions regarding the project and/or the bidding procedures they must contact the HRPC. Once the bids have been received, the city will review the information and determine if the contractors are eligible to participate in the program. There are requirements that each contractor must have in order to be eligible. The City of Apache Junction is not the contractor, does not recommend contractors, does not choose the contractor and cannot guarantee the homeowner will be completely satisfied with the work completed. The HRP will however work closely City of Apache Junction Housing Rehabilitation Program Guidelines, page 16 of 30

67 with the homeowner to help solve any problems and will help ensure the work completed is functional, meets applicable codes and regulations, and is of quality. The HRP does however suggest the lowest most responsive bidder be the contractor awarded the project. Therefore the homeowner will be notified as to which contractor that is. However the homeowner will be signing the contract with the contractor and as such may select a qualified and eligible contractor to complete the work on their home. It should be noted if the selected contractor is not the lowest bidder, the homeowner will be required to pay the difference of the bid amounts. Once a contractor is selected all homeowners and the contractor will be asked to come to City Hall and sign the required contract documents. A notice to proceed will be issued after the documents have been executed. No work can begin until this has taken place. STEP 5: Construction The contractor will be issued the notice to proceed and given a time frame to complete the construction on the home. The homeowner is not authorized to make changes to the project scope of work. All requests for changes must come through the city s HRPC. STEP 6: Final Inspection The city will not release payment to the contractor until a final inspection has been completed on the home and the homeowner and city have signed off on the work completed. All concerns should be discussed during this final walk through with the contractor. Although there is a warranty on their workmanship, it is important to discuss any concerns as soon as possible. CONTRACTOR INFORMATION Work Write-up After the application has been received, the information verified and funding is available, the HRPC will make an inspection of the property and prepare a work write-up and cost estimate. Prior to creating the work write up, the city will request from a BPI certified contractor to complete an Energy Audit on the home (See Energy Efficiency Guidelines). The results of the audit will be incorporated into the work write up. The HRPC and homeowner will thoroughly discuss the work to be done. Once the project scope is approved by the homeowner, the city will competitively procure a qualified contractor that meets all of the procurement requirements of the city and the Arizona Department of Housing. Work write-ups will be completed by the HRPC. Specific building materials and building methods will be left up to the discretion of the HRPC but must meet ICC City of Apache Junction Housing Rehabilitation Program Guidelines, page 17 of 30

68 Standards. The City of Apache Junction Housing Rehabilitation Construction Guidelines will provide guidance on preparing the project scope. The HRPC will provide a rehabilitation cost estimate based on available information from recent projects completed. All new construction that requires substantial repair (more than 50%) of a system must meet the city s current building codes upon completion. The rehabilitated home should at a minimum meet Section 8 Housing Quality Standards and/or all city building codes, whichever is more restrictive, shall govern. The city wishes to encourage contractors to buy locally whenever possible. Request for bids An advertisement will be placed in the Arizona Republic a minimum of fourteen (14) days prior to the bid opening and/or an notification will be sent to contractor s listed on the Housing Rehabilitation Program s Bid List. The city will require bids from two or more licensed contractors to complete the work. Contractors will be required to meet all City of Apache Junction and Arizona Department of Housing requirements to be eligible to be awarded a contract. Requirements include a current City Privilege Tax License; a valid contractor license from the State of Arizona, listed on the Registrar of Contractors website and hold valid insurance. Additionally, any contractor participating in the rehabilitation program must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. The City of Apache Junction encourages minority contractor participation in all projects to include Disadvantaged Business Enterprises e.g. Small Business Enterprises, Minority-owned Business Enterprises, and Women-owned Business Enterprises. A copy of the City s Equal Employment Opportunity Policy is available on-line at Project walk-thru A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to invite all potential contractors to the project site to review the project scope in order to offer an accurate quote. The pre-bid meeting will also be utilized to answer questions and offer information to the contractors and property owner. The contractor may not contact the homeowner prior to this meeting. Proposal submissions Proposals must be submitted by the date and time provided in the request for bids. All proposals must be submitted in a minimum 8 1/2 x 11 letter sized envelope with the words Sealed Bid Residential Rehab along with the address, and the name of the owner of the project being bid. This must be clearly printed on the face of the envelope. In addition, the name of the firm submitting the bid must be listed on the City of Apache Junction Housing Rehabilitation Program Guidelines, page 18 of 30

69 face of the envelope. Failure to comply with the requirements of this paragraph may result in such a bid being considered invalid and returned unopened to the sender. All bidders will be notified via of the bid awards. Addendums All addendums will be sent to interested bidders a minimum of 3 days prior to the bid opening via . Any changes in the finalized work write-up or specifications must be agreed upon in writing and signed by both the Homeowner and the HRPC before they become effective. No change orders will be approved or paid if the work was completed prior to signed approval by the HRPC. Change orders shall not exceed 10% of the total bid price unless the additional work was requested by the HRPC. No side agreements between the Contractor and Homeowner will be allowed. Codes and Standard Specifications The contractor is responsible for knowledge of the city s building codes. All work must conform to Apache Junction Building Codes and/or meet approved Uniform Building Codes unless otherwise specified in writing. The property standards that must be achieved as a result of assisted rehabilitation are established by the city s building codes, the Federal Housing Quality Standards and the Arizona Department of Housing s Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards, and the City of Apache Junction Housing Rehabilitation Program Construction Guidelines. The city s Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. Privilege Tax License The contractor and all subcontractors must have an Apache Junction City privilege tax license prior to beginning work after being awarded a contract for services. Subcontractors must be named on the Contractor Bid Proposal. Bid Award Bid awards are done by the homeowner; however the City of Apache Junction s Housing Rehabilitation Program will recommend the lowest most responsible and responsive bidder. The City of Apache Junction s Housing Rehabilitation Program reserves the right to reject any and/or all bids for reasons included but not limited to the following: City of Apache Junction Housing Rehabilitation Program Guidelines, page 19 of 30

70 1. The contractor is not licensed or his license is suspended or has been barred from federal procurement or no procurement programs. 2. The contractor is not able to proceed with the project in a timely manner, has failed to complete past projects in a timely or workmanlike manner or has failed to respond appropriately to requests for warranty service. 3. The bid submitted is more than 15% above or below the estimate and may not be able to complete the project for this amount. 4. The Contractor has failed to provide lien waivers as required below or has had mechanic s liens filed by suppliers or subcontractors on past projects. 5. Bidding forms are improperly filled out, incomplete or not using the correct bidding forms provided. Owner Bid Rejection The owner may reject any or all bids without cause subject to the following provisions: 1. The owner may choose to reject the lowest bid and select a contractor other than the lowest bidder if the owner is willing to provide from his own funds an amount equal to the difference between the low bid and the selected bid. 2. The owner may reject all bids at any time up to three working days after the contract is closed. The contract will be between the homeowner and the contractor. However the contractor and homeowner may not discuss the award or non-award of the project until the city has completed the required procurement process. The city will serve only as an administrator/financier to the contract. The contractor must be a licensed contractor in the State of Arizona, hold a city business license, be in good standing with the Registrar of Contractors, and not appear on the excluded parties listing thus shall have a DUNS and CCR number. Delays in Awarding Contract Generally the contract will be closed and the work will begin within thirty (30) days of the date of bid submission. If thirty days has passed and no contract is signed, the Contractor may honor the original bid or withdraw the bid. If the Contractor chooses to withdraw the bid, the project will be offered to the next qualified low bid or a new bid process will begin. The HRPC reserves the right to negotiate any bid. Subcontractors All subcontractors shall be named within the proposal submittal including their ROC numbers. Upon award, subcontractors are required to submit certifications, hold a current City Privilege Tax License and a valid contractor license from the State of Arizona. Additionally, any subcontractor participating in the rehabilitation program City of Apache Junction Housing Rehabilitation Program Guidelines, page 20 of 30

71 must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. Notice to Proceed The Notice to Proceed issued by the City of Apache Junction s HRPC will identify the start date. All construction must begin within seven (7) days. A pre-construction conference will be held between the homeowner, the contractor and HRPC to discuss work items, furniture moving, and other questions in need of clarification. All contractors will be required to secure a building permit from the city and post it at the site. Quality of Work Provided General Contractors, sub-contractors and their employees qualified to perform the installations for which they are responsible shall perform all work in a quality workmanlike manner. The job site is considered a federal location and must, at all times, be free from an individual chemical use. All moved or effected equipment shall be returned to a completely functional nature. The Contractor will make provisions for the fact that homeowners will, at all times, occupy this dwelling during the course of construction and need basic services at day s end. Permits The permit application for the project is prepared and submitted by the Contractor. The Building Permit will be issued upon receipt of payment from the Contractor. The permit must be picked up before beginning any work on the property. Follow the Building Department s procedures for scheduling inspections. The Contractor is responsible for all necessary inspections of the property. Clean-up The job site should be thoroughly cleaned during and upon completion of the project. All construction debris of every sort should be removed along with other debris that may have been on the property or collected during the work. Compact, grade and rake any area disturbed by construction for proper drainage. Construction debris is to be hauled to the landfill and disposed of in accordance with all local ordinances. Under no condition is debris to be left for city pick-up. Timely Manner Work should proceed in diligent manner after start-up. Progress inspections will be made almost daily. While material or subcontractor delays are sometimes unavoidable, extended periods without progress or repeated unnecessary delays in completing a project may constitute grounds for rejecting future bids. The City of Apache Junction Housing Rehabilitation Program Guidelines, page 21 of 30

72 contractor is expected to complete the job within the timeframe indicated in the contract. There is a two-year warranty on workmanship and materials. Owner Selections The homeowner is allowed to select the following items: 1. One interior paint color 2. Exterior wall and trim color 3. Counter top color 4. One carpet color 5. One floor tile (grout to be sealed) The contractor must supply the homeowner with a minimum of three (3) color samples. Payment No payments shall be made to the contractors without written approval from the HRPC and the homeowner, with the exception of disputed discrepancies which may be resolved and paid with the signature of the HRPC. The HRPC will monitor all rehabilitation work during construction. If progress payments are called for in the contract, the homeowner and the HRPC will make an inspection of the work outlined in the work write-up scheduled for completion before a progress payment will be made. A contractor may request a 50% draw when one-half of the contracted work is completed and a 40% draw when 90% if the work is completed. The city will hold 10% retention for up to thirty (30) calendar days at the end of the contract to cover closeout contingencies. The contractor must submit all lien waivers, warranties/guarantees prior to the release of the 10% retention. Warranties and Owners Manuals The contractor shall warrant all work for a period of two (2) years or more, exclusive of the manufacturer s warranty, from the date on the approval of the final inspection, which will be signed by the homeowner and the HRPC. Major systems or items necessary to make the property meet code should be analyzed on the basis of a three year life expectancy. Major systems include: roofs, heating, cooling, plumbing, water heaters, and electrical components. When included in a project, warranties for all items such a new appliances/hot water heaters shall be given to the HRPC by the contractor(s). All warranties will be provided to the homeowner. Final Inspection After the contractor has passed all permit inspections from the Building Department, please inform the HRPC so that a final inspection can be scheduled. Approval of the City of Apache Junction Housing Rehabilitation Program Guidelines, page 22 of 30

73 work by the city building inspector does not constitute acceptance of the workmanship by the Housing Rehabilitation Program or the homeowner. The HRPC will schedule for a post audit to be completed. All items identified by the BPI certified technician shall pass the inspection. If the improvements are not completed accordingly, the technician will identify the deficiency and the contractor will be required to make the necessary improvements to achieve the identified energy efficiency goals. No change order may be requested to cover the costs of redoing any work previously recommended. Upon the homeowner s acceptance of the work completed, final payment will be issued after final invoice and lien waiver are presented to the HRPC. Final payment can be expected within 30 days of work completion and successful final inspection. In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation, the HRPC will work with both parties to negotiate a satisfactory solution. If a solution cannot be arrived at, a grievance can be filed as outlined below. HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION In addition to warranty brochures, the HRPC and Contractor shall conduct training in the home to instruct the homeowners on the new equipment, appliances and general housing maintenance counseling on items that had been installed in the home. The city will provide a home maintenance document. The city s housing program also provides a Housing Programs and Services Newsletter on a quarterly basis for all housing rehabilitation program recipients. Homeownership Counseling is currently provided by the Arizona Department of Housing and/or their designee. ENERGY EFFICIENCY GUIDELINES The HRPC will write the bid specifications to include energy efficiency measures as required by the Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards. Detailed information pertaining to the Energy Efficiency requirements can be found in the city s Housing Rehabilitation Program Construction Guidelines. The City s requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement new regulations with regard to lead-based paint in compliance with the Residential City of Apache Junction Housing Rehabilitation Program Guidelines, page 23 of 30

74 Lead-Based Paint Hazard Reduction Act of This Rule was effective on September 15, ADOH received permission from HUD to defer implementation of this Rule until January 10, As of January 10, 2002, any CDBG or HOME awards made by the ADOH after January 10, 2002, and used to fund housing rehabilitation projects are required to comply with these lead-based paint requirements. However, CDBG or HOME awards made by the ADOH before January 10, 2002, and used to fund housing rehabilitation projects, whether or not the actual projects have been started, will not be subject to these requirements. In order to comply and implement these lead-based paint requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued by the Office of Housing Development ( OHD ) on December, The HRP shall specifically adhere to the evaluation, disclosure, work requirements, and clearance procedures contained in this Bulletin. Any interim control or abatement procedures of lead-based paint hazards as prescribed by HUD requirements shall be included in the scope of work. The HRP shall also attempt to obtain lead-based paint general liability insurance for lead-based paint hazards and encourage contractors to secure lead-based paint hazard liability insurance. The HRPC will provide the homeowner with the EPA/HUD Pamphlet Protect Your Family from Lead in Your Home. The HRPC shall also provide the homeowner with the Lead Based Paint Notification for the homeowner s review and signature. The HRPC shall specifically review the notification form with the homeowner and make every effort to ensure the homeowner is aware of the hazards and ways to avoid lead based paint poisoning. The executed notification is retained in the homeowner/client s file and a copy is provided to the client. If lead based paint hazards are identified and treated by a certified lead based paint risk Assessment Company, the HRPC shall meet with the recipient and discuss the findings contained in a Risk Assessment Report. The recipient shall also sign off on the report to reflect that the findings contained in the Risk Assessment Report were explained and discuss with the recipient. The Risk Assessment Report shall then become a part of the recipient s file. All brochures regarding lead-based paint hazards are available in alternate format for non-english Spanish speaking persons upon request. CONFLICTS OF INTEREST 1) Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City may not obtain a personal or financial interest or benefit from this activity, nor may they have an interest whatsoever, however remote, in a contract, subcontract or proceeds either for themselves, their family or business ties during their tenure, or for one year thereafter. 2) No contract will be awarded to a contractor who is related, or whose employee is related to the applicant by blood or marriage. City of Apache Junction Housing Rehabilitation Program Guidelines, page 24 of 30

75 Upon written request to the HRP in care of the Apache Junction Development Services Department, the Development Services Director, or his/her designee, will determine if a conflict exists. COMPLAINT AND GRIEVANCE PROCEDURE Applicants, Program participants, or contractors may initiate a complaint by submitting concerns in writing to the City of Apache Junction Development Services Director, or his/her designee, at 300 East Superstition Boulevard, Apache Junction, Arizona The Development Services Director, or his/her designee, is responsible for receiving, reviewing, and responding to all complaints including prequalification of applicant or contractor qualification. The City must issue a written response to any complaint within ten (10) working days of receipt. If unsatisfactory to the complainant, a written appeal of the City s response shall be filed within ten (10) working days of receipt of the City s response. Appeals shall be made to the City Manager, by sending such appeal to 300 East Superstition Boulevard, Apache Junction, Arizona, Attn: City Manager. The City Manager shall be the final administrative decision maker. Further judicial appeals shall be in accordance with A.R.S. Title 12, Assistance from the City in preparing a grievance is available at no charge if needed due to either a disability or language limitation. Assistance will be provided through the Development Services Department at (480) TDD (480) ; FAX (480) or 300 East Superstition Boulevard, Apache Junction, Arizona Additionally, the City of Apache Junction has adopted an internal complaint procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by the federal regulations implementing Title II of the Americans with Disabilities Act ( ADA ) and Title VI of the Civil Rights Act of 1964, as amended. Title II states, in part that "no otherwise qualified disabled individual shall, solely by reason of disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination" in programs or activities sponsored by the city. All ADA and Civil Rights complaints made against the city, its employees, representatives, and contractors relating to facilities, programs, services and projects, shall be required to adhere to this process in order to file a grievance. All equal employment opportunity complaints shall be filed with the Human Resources Department and may not be handled in the same manner as ADA and Civil Rights complaints under Titles II and VI. City of Apache Junction Housing Rehabilitation Program Guidelines, page 25 of 30

76 Civil rights complaints are valid when the legal basis for the complaint is due to discrimination on the basis of race, color, national origin, religion, sex, disability, or familial status. Depending on the complaint, the following persons shall be responsible for determining a resolution: Complaints filed against the city whether a city program, service or project, will be reviewed by the ADA and Civil Rights Coordinator ( ACRC ) and forwarded to any applicable state and/or federal agency as required under their guidelines. Additionally, the Arizona Department of Transportation ( ADOT ) Civil Rights Office will be provided all civil rights complaints regardless of the nature of the complaint relevant to a project funded in whole or in part by ADOT funding. ADOT will then follow their procedures to determine if the complaint is relevant to their area of jurisdiction. Subsequently, the ACRC and/or ADOT will make a determination and resolve the complaint within 60 calendar days. Complaints filed against a contractor hired by the city shall be reviewed by the ACRC and a copy shall be provided to ADOT within 60 days. The complaint will be reviewed, investigated and resolved within 60 calendar days. Complaints should be addressed to: Bryant Powell, ADA and Civil Rights Coordinator, 300 East Superstition Blvd., Apache Junction, Arizona, 85119, (480) A complaint shall be filed in writing or digitally. It must contain the name and address of the complainant, and describe the nature and the date of the alleged violation of the regulations. The complaint must be signed by the complainant or by someone authorized to do so on his or her behalf. A complaint form is available on-line at or by asking any city staff member. 2. A complaint must be made within 30 calendar days after the complainant becomes aware of the alleged violation. 3. The ACRC will call or meet with the complainant no later than 8 city working days after receipt of the complaint. An investigation, if needed or if appropriate, may follow the meeting. The investigation shall be conducted by the ACRC. Any investigation should be informal but thorough, affording all interested persons an opportunity to submit information relevant to the complaint. City of Apache Junction Housing Rehabilitation Program Guidelines, page 26 of 30

77 4. The ACRC shall issue, as soon as possible, but not later than 30 calendar days after the complaint is received, a letter or acknowledging the complaint, which includes a description of the resolution to the complaint. The decision of the ACRC shall be binding and final subject only to an appeal pursuant to A.R.S , et. seq. 5. The ACRC shall retain all complaint records and associated documents pursuant to the city s record retention requirements, and shall dispose of them in accordance with such policy. 6. The right of a person to file a complaint under this procedure shall not affect the complainant's right to pursue other remedies such as filing of a complaint with the responsible federal or state agency. Use of this grievance procedure shall not extend the time for filing any complaint with the responsible federal or state department or agency. MARKETING The Housing Rehabilitation Program will be marketed using the following media: Brochures, Flyers, City of Apache Junction Website, the Housing Programs and Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache Junction s Cable Channel, the city s grants blog and local newspapers including AJ News and the Independent. Direct marketing to neighborhoods may also be conducted by mailing a postcard to residents within a targeted area notifying them of the city s programs. Distribution of marketing materials will be through a local network of human/social services agencies and at general posting locations throughout the city which include but are not limited to the outlets below: Human/Social Service Agencies TRIAD Neighborhood Watch Groups Pinal County Housing Pinal County Volunteer Center CAAFA CAAG RSVP Program ABIL CAHRA Salvation Army Area HOA s Apache Junction Food Bank Boy s and Girl s Club Project Help HOPE Women s Center Apache Junction Senior Center Apache Junction School District Apache Junction Community Development Corporation Apache Junction Chamber of Commerce Central Arizona Council on Development Disabilities City of Apache Junction Victim Assistance (Police Department) City of Apache Junction Victim Advocate (City Attorney s Office) City of Apache Junction Housing Rehabilitation Program Guidelines, page 27 of 30

78 Superstition Mountain Mental Health Center Posting Locations City Hall Parks and Recreation Library Multigenerational Center The City will make every effort to accommodate persons with disabilities and non- English speaking persons. See the section entitled Assistance to Applicants for additional information. STAFFING AND ADMINISTRATIVE REVIEW All administrative and supervisory work will be done by city staff. Procedures to protect applicants, HRP participants, and contractors are outlined in the sections entitled Complaint and Grievance Procedure and Non-Discrimination. The City of Apache Junction s HRPC will be responsible for the following: application intake; income verification; case management; contractor procurement; change order approvals; and final inspection. The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona The HRPC can also be contacted at (480) or TDD (480) City Manager Assistant City Manager Development Svcs. Director Finance Director Revenue Dev. Manager Program Coordinator NON DISCRIMINATION The City of Apache Junction, or any of its sub recipients, do not discriminate in any activity on the basis of race, color, religion, sex, disability, familial status, or national origin. The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors participation is encouraged DBE/MBE/WBE. A copy of the City s Equal Employment Opportunity Policy is available on-line at ASSISTANCE TO APPLICANTS Should an individual need assistance in preparation of an application, assistance will be provided, at no charge, through the Development Services Department. The City of Apache Junction Housing Rehabilitation Program Guidelines, page 28 of 30

79 Department can be reached at 300 East Superstition, Apache Junction, Arizona Assistance can also be requested at (480) or TDD (480) Applicants may request assistance because of a: 1) physical/mental/ emotional disability or 2) limited ability to speak/read English. FAIR LABOR STANDARDS The provisions of the FLSA are not applicable to the rehabilitation of single family homes under this program. APPLICABLE DOCUMENTS The city s HRP uses guidance from the following sources of information pertaining to the administration of the HRP: 1) Arizona Department of Housing Owner Occupied Housing Rehabilitation Standards 2) United States Department of Housing and Urban Development Housing Quality Standards. 3) United States Environmental Protection Agency Information regarding Lead Based Paint. 4) Arizona Department of Housing, State Housing Fund Program Summary and Application Guidelines. 5) Arizona Department of Housing Community Development Block Grant Handbooks. 6) Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards. 7) City of Apache Junction City Ordinances and adopted Building Codes. 8) City of Apache Junction Housing Rehabilitation Program Construction Guidelines. CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES The Housing Rehabilitation Program Guidelines are generally adopted with revisions annually, however should an emergency change within the Housing Rehabilitation Guidelines as adopted by the city council be required throughout the program year, the Mayor shall submit a letter in writing to the Arizona Department of Housing ten (10) days prior to the change coming into effect. FORMS A complete packet of forms utilized by the City s Housing Rehabilitation Program are available upon request. Below is the listing of those forms. Form Application which includes: Authorization for Release of Info, Verification of Employment, Affidavit of Non-Income, Declaration of Citizenship Form Work Write Up including cost estimates Owner Acceptance of Work Write Up Contractor Participation Statement Contract between Contractor and Owner City of Apache Junction Housing Rehabilitation Program Guidelines, page 29 of 30

80 Income Verification Determination Sheet Agreement which includes: Certification of Principal Residence, Federal Assistance Notice, Complaint and Grievance Procedure, Disclaimer Development Services Due Diligence Owner s Color Preference Verification Change Orders Final Acceptance of Work Completed Final Invoice and Waiver of Lien Truth In Lending Form, Right of Rescission, Promissory Note, Deed of Trust, Release of Lien City of Apache Junction Housing Rehabilitation Program Guidelines, page 30 of 30

81 CITY OF APACHE JUNCTION, ARIZONA HOUSING REHABILITATION PROGRAM GUIDELINES As Adopted by the City Council on February 1, 1994 Modified by the City Council on January 17, 1995 Addendum by the City Council on March 21, 1995 Modified by the City Council on June 20, 1995 Modified by the City Council on March 7, 2000 Modified by the City Council on May 15, 2001 Modified by the City Council on February 5, 2002 Modified by the City Council on January 16, 2007 Modified by the City Council on June 5, 2007 Modified by the City Council on November 18, 2008 Modified by the City Council on December 15, 2009 Modified by the City Council on December 6, 2011 Modified by the City Council on January 15, 2013 Modified by the City Council on April 1, 2014 Modified by City Council on January 20, 2015 The city council of the City of Apache Junction adopts the following Housing Rehabilitation Guidelines to assist the city in administering the city s Housing Rehabilitation Program. This program is intended to provide safe and decent housing to City of Apache Junction residents by offering funding options to assist homeowners with the rehabilitation or modification of their home. PROGRAM PURPOSE (GOALS) 1. Eliminate health and safety hazards in homes; 2. Benefit very low-, low- and moderate-income residents; and 3. Improve neighborhoods and encourage stability. City of Apache Junction Housing Rehabilitation Program Guidelines, page 1 of 29

82 TABLE OF CONTENTS Program Purpose and Goals 1 Program Design 3 Target Area 3 Eligibility Requirements 3 Property Standards 6 Allowable Work Items 6 Non-allowable Work Items 8 Rehabilitation Assistance Plans 8 Emergency Housing Repair 8 Housing Accessibility 8 Housing Rehabilitation 9 Replacement 9 Permit Fee Fund 9 Deferred Payment/Forgivable Loans 11 Exceptions to the Maximum Allowed 11 Recapture Period 11 Loan Servicing Policy/Subordination 12 Revolving Loan Fund/Program Income 12 Third Party Income Verification 12 Method for Determining After Rehab Value 13 Homeowner Information 14 Contractor Information 17 Housing Maintenance and Homeowner Education 23 Energy Efficiency Guidelines 23 Lead Based Paint Requirements 23 Conflict of Interest 24 Complaint and Grievance Procedures 25 Marketing 27 Staffing and Administrative Review 28 Non-Discrimination 28 Assistance to Applicants 28 Fair Labor Standards 29 Applicable Documents 29 Changes to Program Guidelines 29 Forms 29 City of Apache Junction Housing Rehabilitation Program Guidelines, page 2 of 29

83 PROGRAM DESIGN The focus of the Housing Rehabilitation Program (hereinafter HRP ) is to increase the life and improve the livability of homes owned by very low-, low- and moderateincome families by correcting code violations, solving health and safety issues, addressing accumulated deferred home maintenance projects, and providing sustainability by weatherizing homes. Funds for the program are primarily provided through the: 1) Community Development Block Grant Program ( CDBG ) and 2) State Housing Fund ( SHF ) including HOME and State Housing Trust Funds as administered by the Arizona Department of Housing ( ADOH ). Owner-occupied housing rehabilitation ( OOHR ) assistance to homeowners in the SHF funded portion of the city s HRP may be in the form of deferred payment/forgivable loans. OOHR assistance to homeowners in the CDBG funded portion of the city s HRP may be in the form of grants or deferred payment/forgivable loans. Unless specifically stated to the contrary, comments contained in these guidelines are applicable to both the CDBG and SHF funded portions of the city s HRP. TARGET AREA The program will be open to all full-time permanent residents who live within the incorporated boundaries of the City of Apache Junction, excluding those who live in designated ineligible areas or structures as outlined in the eligibility requirements below. CDBG funds may only be used in the Pinal County portion of the city. ELIGIBILITY REQUIREMENTS To be eligible, the applicant and the property to be rehabilitated must meet the following criteria: Located within the incorporated boundaries of the City of Apache Junction, excluding the Maricopa County area. Feasible for rehabilitation under the time and monetary constraints of the program. Owned and occupied by a full-time permanent resident of Apache Junction. Applicants must have a verifiable income that falls below 80% of the area median income as indicated by The US Department of Housing and Urban Development and the State of Arizona State Housing Fund Program income City of Apache Junction Housing Rehabilitation Program Guidelines, page 3 of 29

84 limits for very low-, low- and moderate-income families. Income guidelines are updated annually. Income verification is valid for a period of six (6) months. Upon expiration of income verification information, applicants must complete and submit new income verification documentation. Income must be anticipated and verifiable for the next 12 months. Required documentation of income can be found under Third Party Income Verification within this document. For all programs, specifically the SHF Program, the property owner cannot have assets that total more than $25,000 (e.g. cash, stocks, bonds, money market accounts, IRA, etc.) This is exclusive of the home they live in, two vehicles, and personal property necessary for daily living. Provide proof of homeowner s insurance. For the purposes of eligibility, self help or sweat equity are not allowable forms of equity. The current owner must have occupied the structure for at least one (1) year prior to program entry. Preference will be given to households applying for funding that meet one of the following criteria: 1) be elderly (62 years of age or older); 2) have a disability (a legally recognized physical/mental/emotional condition that limits the performance of daily living skills); or 3) have minor child (ren) age 17 and under related to head of household residing in the residence. A.R.S and requires that all homeowners who receive services under the program shall provide proof of lawful presence in the United States including a sworn affidavit that the required documentation is true under penalty of perjury. Owner is to complete any recent construction project underway prior to the city s approval of rehabilitation assistance. Manufactured and mobile homes are deemed eligible contingent upon: 1) applicant (s) having owned and occupied both property and dwelling for one (1) year prior to program entry; and 2) the home being permanently attached to a foundation, either as a pre-existing condition or as a work element of the HRP. Properties in non-conforming zoning, properties located within 1,000 feet of an explosive/flammable operation, properties with open, unresolved building or code compliance cases and homeowners unwilling to follow the City of Apache Junction Program Guidelines, are not generally eligible for rehabilitation under this program. City of Apache Junction Housing Rehabilitation Program Guidelines, page 4 of 29

85 Homes of historical value may only be eligible upon favorable review by the State Historic Preservation Office. Manufactured homes that were built before June 1976 are not eligible to receive housing rehabilitation funding, however they are eligible for emergency and housing accessibility assistance. The rehabilitation of dwellings located in the 100-year floodplain are not eligible for participation in the rehabilitation program. Properties that are classified non-conforming are not generally eligible for rehabilitation. However, if the proposed rehabilitation is non-structural and there are no properties waiting to be rehabilitated, nonconforming properties that meet all other eligibility criteria may be considered. Properties with an open building or code case are generally not eligible for rehabilitation. However if the case is relating to a correctable building condition HRP funds can correct under the requirements of the program, then the unit will be deemed eligible. Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments. Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property. Mortgage payments and insurance premiums must all be current. Is the home located within the city limits of Apache Junction? Is there someone who is over the age of 62, under the age of 18, or disabled living in the home? Are you a US Citizen? Are you a full time permanen t resident? Do you have homeowners Insurance? Are you low income and willing to provide documentatio n of income? Click here to view the income limits for program eligibility. Do you own your home and land? Have you owned and lived in your home for one year? Is the home located outside of a floodplain? If you have answered yes to all of the questions, CONGRATULATI ONS,YOU MAY QUALIFY! City of Apache Junction Housing Rehabilitation Program Guidelines, page 5 of 29

86 PROPERTY STANDARDS The property standards that must be achieved as a result of assisted rehabilitation are established by the most recent state and local building codes, the Federal Housing Quality Standards, Arizona Department of Housing s Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards, the City of Apache Junction Housing Rehabilitation Program Construction Guidelines, the Uniform Federal Accessibility Standards and the Americans with Disabilities Act, as applicable and needed by the homeowner. The city s Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. ALLOWABLE WORK ITEMS HOME guidelines require an entire dwelling be brought up to local code. A preliminary property inspection is completed to assist with ensuring homes meet Housing Quality Standards ( HQS ) and are safe, sanitary and decent. Priorities have been established for determining the work that will be completed in the eligible homes. 1. Code Violations 2. Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1. The age and the physical condition of the building; 2. The goal of the program (building revitalization or direct benefit); 3. Funds available for rehabilitation of each unit; and 4. Value of unit after rehabilitation. The following levels are utilized to determine priorities for the HRP: Level 1: Initial inspection reports must include items in Level 1. Level 2: Items included on Level 2 are also considered critical but not as critical as those items in Level 1. Other items are considered less critical and should always be inspected but may not be rehabilitated. City of Apache Junction Housing Rehabilitation Program Guidelines, page 6 of 29

87 Level 3: The items on List 3 should be reviewed, and where feasible, corrected. These items must also be included whenever substantial rehabilitation is taking place. Items from all levels must be included in the preliminary inspection report for all construction projects and those where the cost of rehabilitation exceeds 75% of the value of the property. Level 1 - Items that must be included in the inspection report and must be repaired or replaced: 1. Lead Based Paint Assessment (only on properties built prior to 1978) 2. Hazardous Materials 3. Health and Safety Hazards 4. Stable and Weather Tight Roof 5. Electrical System the unit must have a minimum 100-amp electrical service, with no unsafe conditions 6. Plumbing (including hot water) Must be in good working order and be safe and sanitary 7. Heating and Cooling Systems must be adequate and safe with a reasonable (three year) useful life 8. Egress in accordance with local health and safety codes 9. Trip Hazard (HQS Standard) Level 2 - Items that must be included in the inspection report and should be repaired or replaced: 1. Structural soundness and integrity (including rotted or deteriorating materials and those impacted by termites and/or other wood-boring insects). 2. Siting of the structure and its relationship to water penetration that may impact structural integrity. 3. Appropriate kitchen facilities including a sink and means of cooling and heating food to healthful standards. 4. If the structure has an attached garage, appropriately-rated fire wall between garage and living areas 5. Weatherization items. The above mentioned items are first priority items that shall be included in every inspection report. These items shall also be included in the Work Write-Ups (funds permitting) and shall receive priority in work to be completed as part of the rehabilitation project. Repair or replacement may take place based on the amount of available resources. Level 3 - Items that must be included in the inspection report and may be repaired or replaced: City of Apache Junction Housing Rehabilitation Program Guidelines, page 7 of 29

88 1. Debris that may be a fire hazard 2. All existing exposed surfaces painted or sealed and not presenting a health or safety hazard. 3. Cabinetry 4. Finished flooring 5. Repair and replacement of doors and windows not presenting a health or safety hazard. The above mentioned items shall be included in every inspection report and may be included in the Work Write-Up (funds permitting). These items generally result from deferred maintenance and are considered general improvements. The City wishes to encourage contractors to buy locally whenever possible. NON ALLOWABLE WORK ITEMS None of the program funds shall be used for temporary/long term relocation of applicants during periods of home rehabilitation/repair. No funds shall be used to reimburse the homeowner for work completed. REHABILITATION ASSISTANCE PLANS 1. EMERGENCY/MINOR HOUSING REPAIR PLAN A grant plan that assists homeowners in the elimination of an imminent threat to life, safety or health; the necessary repairs may include, but shall not be limited to: roofs, floor repairs, window/door replacements, and wall and ceiling repairs. The minimum assistance is $1,000 and the maximum assistance is $15,000 per recipient. The grant may address no more than two (2) emergency conditions, unless approved by the Development Services Director, or his/her designee, due to some extenuating circumstances. A structure may be eligible for an Emergency Grant even though it may not meet structural integrity requirements. After a recipient has received services through the Emergency Housing Repair program they may not be eligible to receive additional services until five years after the completion of the project unless the emergency services enable the homeowner to remain in their home until the home can be rehabilitated under the city s Housing Rehabilitation Plan or replaced under the city s Replacement Plan. Additionally, no single owner of a home may receive more than two emergency assistance grants. 2. HOUSING ACCESSIBLITY PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to make their residence physically accessible. Assistance can be either structural changes or purchase of durable medical equipment (if it becomes a permanent part of structure) and may include ramps, grab bars, handrails, raised toilets, lowered light switches, automatic door openers, visual alarms, transfer shower benches, and hand held City of Apache Junction Housing Rehabilitation Program Guidelines, page 8 of 29

89 showers. Grants are limited to $2,500 per recipient. This program is offered through the city s partnership with Community Action Human Resources Agency (CAHRA) or may be a component of another rehabilitation plan. 3. HOUSING REHABILITATION PLAN A grant or deferred payment/forgivable loan plan that assists homeowners to address safe, sanitary, and decent housing rehabilitation issues. Rehabilitation projects may either be major or minor. Grants and deferred payment/forgivable loans are limited to a minimum of $1,000 and a maximum as required by the grant from which the funds will be expended, this amount may change each funding year. Mobile/manufactured homes and conventional, site-built homes have different maximum investments. HOME funds cannot be utilized in the form of a grant. In the HOME Program, weatherization, emergency repairs, or accessibility projects may be undertaken only if the property is brought up to the State s rehabilitation standards upon completion. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. However, should the recipient receive any housing rehabilitation services in the form of a grant, they may not be eligible to receive additional services until five years after the completion of the project. 4. REPLACEMENT PLAN A grant or deferred payment/forgivable loan plan that assists homeowners with the replacement of unsafe, hazardous living conditions by providing a new manufactured or site-built home. This plan provides a maximum investment as stipulated within each grant from which the funds will be expended. This amount may change each funding year and is intended for the construction of a new home or for the replacement of a manufactured home. Manufactured homes may not be replaced with site built homes. HOME funds cannot be utilized in the form of a grant. When a recipient receives a deferred payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. The city will make every effort to eliminate or reduce the need for relocation during construction. Homeowners may be encouraged to find temporary housing with family or friends. In the event that no options exist, the city may use grant funds to pay for temporary accommodations. 5. PERMIT FEE FUND In 2003, the City of Apache Junction created a revenue fund ( ) in order to track and collect permit fees that have been paid for by contractors that are participating in the City s Housing Rehabilitation Program. The fees that were collected were to be used to supplement and support the activities of the City s Housing Rehabilitation Program. These fees are collected in accordance with the City of Apache Junction Housing Rehabilitation Program Guidelines, page 9 of 29

90 City of Apache Junction City Code, Volume I, Chapter 7, Article 4-4 Sections A through I. All relevant fees shall be due payable by the contractor prior to the start of construction on any City of Apache Junction housing rehabilitation project. These fees will be tracked by the Housing Rehabilitation Program Coordinator ( HRPC ) and reported to the Finance Director for deposit into the appropriate revenue account. This account will be tracked to ensure accurate balance and expenditures. Eligible expenses to be withdrawn from this account shall be minor repair items that are eligible under the City of Apache Junction s Housing Rehabilitation Program and the adopted Housing Rehabilitation Guidelines. Recipients of these funds, however, must be homeowners that are not eligible under the same guidelines or available funding programs. These repairs must be determined an emergency by the Program Coordinator. Further, the Coordinator must have found that there is no other funding or community assistance can be located for the homeowner. Eligible homeowners must be either elderly (over the age of 62), disabled, or have children under the age of 18 occupying the home and the total household income must not exceed 80% of the area median income. When an expense is determined to be eligible to be charged to this account, the Coordinator will submit a check request along with an invoice for payment to the finance department. The maximum amount payable toward any project shall be $1,000 unless otherwise approved by the Development Services Director. Replacement A Replacement may be provided to homeowners when the cost to rehabiltate their home exceeds the maximum investment allowable. Replacement homes will be site built homes, where zoning allows for such construction. Manufactured homes may be used as a replacement in areas where zoning does not allow for site built homes. A lien is placed on the home for the extent of the recapture period which is based upon the total investment amount. Emergency Rehabilitation Eligible Homes 1) Single family homes, manufactured homes, condos, and townhomes; 2) Pre 1976 manufactured homes; 3) Manufactured homes affixed to a foundation; 4) Homes with encumbrances e.g. reverse mortgage and liens excluding a first mortgage. Eligible Items 1) Acessibility improvements; 2) Health and safety improvements; 3) Limited to two improvements per grant. Assistance Provided Grant not to exceed $15,000 Limit assistance to two times per home Housing Rehabilitation Eligible Homes 1) Single family; 2) Post 1976 manufactured homes affixed to a foundation; 3) Condos and town homes; 4) Homes without embumbrances e.g. reverse mortgage and liens, excluding a first mortgage. Eligible items 1) Complete rehabilitation of home; 2) Address all code, health and safety items; 3) Incorporate energy efficiency improvements; 4) Accessibility items. Assistance Provided Deferred Payment Forgivable Loan Single family home maximum investment $60,000 Manufactured home maximum investment $20,000 No additional assistance during recapture period A lien is placed on the home for the extent of the recapture period which is based upon the total investment amount. City of Apache Junction Housing Rehabilitation Program Guidelines, page 10 of 29

91 DEFERRED PAYMENT/FORGIVABLE LOANS All deferred payment forgivable loans are secured by a lien and promissory note. A percentage of the total assistance provided on forgivable loans will be forgiven on the anniversary date of the execution of the recording of the loan instruments throughout the recapture period, provided that the dwelling unit continues to be occupied by the original occupant or an income qualified immediate family member. The unforgiven balance of the loan shall become due and payable upon the sale of the property. Properties encumbered by mortgages/loans held by individuals or partnerships are not eligible unless a warranty deed is recorded and a lien may be placed on the property. HOME funds cannot be used in the form of a grant. The HRPC will be responsible for recording the required paperwork as determined by the loan. The lien will be recorded at the Pinal County Assessor s Office and will include applicable administrative costs and a contingency of 10% above the Contractor s Bid. The Deed of Trust will be placed on a tracking system by the HRPC who will track the loan calculating the amount of dollars that will be forgiven as each year passes until the loan has been completely forgiven as outlined in the HRGs. The HRPC will send a letter to the homeowner annually advising the homeowner of the status of their loan, identifying the amount forgiven and the amount that remains on the loan. The city will be no lower than the first position on the lien of the home or second if a financial institution held first position prior to the city recording the loan documents. A letter to the homeowner shall provide a reminder that the city cannot subordinate the loan. EXCEPTIONS TO THE MAXIMUM ALLOWED The Maximum investment for each project is stipulated under each grant program from which the funding is expended. This maximum may change with each funding year. However under no circumstance may the maximum per unit investment exceed that which is determined by the geographic area 221 (d) 3 per unit limits based on the number of bedrooms nor can the after rehabilitation value exceed the allowable amount set by HUD (see Method for Determining After Rehabilitation Value section below). RECAPTURE PERIOD When a recipient elects to receive assistance in the form of a deferred or forgivable loan, a recapture period applies. The recaptured period is based on the amount of funds invested in the assisted unit. Recipients may elect to have a recapture period that is longer than the required period. When a recipient receives a deferred 5 Years 10 Years 15 Years 30 Years Investment of $1,000 $15,000 Investment of $15,001 $40,000 Investment of $40,001 $75,000 Investment of $75,001 and over City of Apache Junction Housing Rehabilitation Program Guidelines, page 11 of 29

92 payment/forgivable loan, no further investment of CDBG funds can be made on the home until after the recapture period has expired. No additional HOME funds may be invested. LOAN SERVICING POLICY/SUBORDINATION After execution of the loan, subordination agreements with lending institutions will not be honored since such practice is lending of city credit in violation of State constitutional law. Properties rehabilitated through this program must be free of any encumbrances such as liens or judgments. Properties may be encumbered by a mortgage in first position so long as a financial institution or other such mortgage company holds that mortgage; however, there must be sufficient equity remaining to justify placing a lien for the rehabilitation deferred payment loan in second position. Should a refinancing request be made by the homeowner after the rehabilitation work has been completed and a lien has been placed on the structure and the request has been made prior to the end of the recapture period, the lien shall become due and payable upon refinancing to the city. Thus, should the refinance be cash out, the city will require payment in full of the lien. The city will be no lower than first position on the lien of the home. As noted above, the city cannot subordinate the loan in any manner. REVOLVING LOAN FUND/PROGRAM INCOME The City of Apache Junction does not currently have a revolving loan fund. Therefore the City will track all loans. In the event a house that has received services is sold prior to the end of the recapture period, the city will enforce the repayment of the loan in the amount that remains unforgiven. These funds will then be immediately circulated into the Housing Rehabilitation Program and will be utilized prior to the use of any new grant funds. However when utilizing HOME funds, any recaptured or repaid funds will be returned to the Arizona Department of Housing as retention of HOME funds is not allowed by the Arizona Department of Housing. THIRD PARTY INCOME VERIFICATION Upon receipt of the application, the HRPC will verify eligibility based upon the homeowners income. The definition of income is taken from 24 CFR Part 5. Gross Income will be used to calculate income for all members of the household over the age of 18. Income must be anticipated and verifiable for the next 12 months. Typical required documents to verify income will include, but are not limited to: 1. Bank Statements including checking and savings accounts; 2. Paycheck stubs including tips, commission and bonuses, and overtime; 3. Earned Interest and Assets: This amount is calculated into the income if over $5,000. Eligible assets include but are not limited to Value of Stock, Life City of Apache Junction Housing Rehabilitation Program Guidelines, page 12 of 29

93 Insurance, 401K, interest, CD s, Real Estate, Personal property not including home; 4. Social Security; 5. Welfare Assistance; 6. Alimony and Child Support ; 7. Minors Income specifically disability payments; 8. If self employed, must include the past three (3) years income tax returns for net income; 9. Excluded items include earned income from minors (under age 18), full-time student income (ages 18-23), disabled persons income, and food stamps Median Income Guidelines HUD updates the Median Income Guidelines on an annual basis. The most current information can be found on the US Department of Housing and Urban Development website. The city will utilize the HUD Income Calculator to determine income eligibility. METHOD FOR DETERMINING AFTER REHABILITATION VALUE Beginning August 23, 2013 HUD has established the HOME Maximum After Rehab Value Limits for owner occupied housing rehabilitation. These limits will remain in effect and are updated as HUD issues new limits. The new HOME value limit for existing housing to be used for owner occupied housing rehabilitation is 95 percent of the median purchase price for the area based on Federal FHA single family mortgage program data and other nation wide data on the sales of existing housing. To establish Project eligibility, after-rehabilitation value must be established prior to any work being performed. The after- rehabilitation value may be established by one or more of the following methods: 1. Estimates of value: Estimates of value by the subrecipient may be used. Project files must contain the estimate of value and document the basis by which the value estimates were derived. (For example, a Real Estate Broker s price opinion with supporting comparable sales.) Websites such as quizzle.com, zillow.com and trulia.com may be used to determine an estimated value. 2. Appraisals: Appraisals, whether prepared by a licensed fee appraiser or by a staff appraiser of the city, may be used. Project files must document the appraised value and the appraisal approach used. 3. Tax assessments: Tax assessments for a comparable property located in the same neighborhood may be used to establish the after-rehabilitation value if City of Apache Junction Housing Rehabilitation Program Guidelines, page 13 of 29

94 the assessment is current and accurately reflects market value after rehabilitation. HOMEOWNER INFORMATION Applications are available by mail, in the Development Services office, or obtained from the city s website at by the applicant. Eligible applicants will be prioritized on a first come, first served basis, unless the nature of the project constitutes an eminent threat to health or safety, as determined by the Building Inspector. STEP 1: Waiting List Once an application is approved and the homeowner is determined to be eligible to participate in the city s HRP, they will be placed on a waiting list. Homeowner s will be served based on two factors: 1. A First Come - First Serve Basis 2. Based upon the funding availability of the program with which they are eligible. The city has several housing programs. Based on their eligibility they may not qualify for all programs. Applicants can remain on the waiting list for up to 18 months or more before receiving assistance. The financial information provided with the application is valid for 6 months. Therefore homeowner s may be required to re-submit financial information to re-certify they are eligible to participate in the program. A typical timeline for services may be: Application is submitted Review of application (eligibility determination) Placed on waiting list Schedule initial meeting to discuss the program Schedule home inspection Determine work write up Procure contractor Signed documents/contracts Construction Final inspection 2 months up to 1 year 2 months 2 months 2 months 4 months 2 months 3 months 1 month STEP 2: Interview When the time has come to receive the benefits of the program an appointment will be scheduled to make a home visit to discuss the details of the program and sign an agreement. All homeowners must be present. City of Apache Junction Housing Rehabilitation Program Guidelines, page 14 of 29

95 There are two basic programs in which homeowner s may be eligible. It will be determined which program would best suit their needs once an inspection of the home is completed and a cost estimate is determined. Following are the two programs: 1. Emergency Rehabilitation: This program will address two emergency needs within the home. This program is provided in the form of a grant. Once a homeowner receives this service, they may not be eligible for additional assistance for five years. 2. Housing Rehabilitation: This program will address all the necessary needs within the home under the requirements of the program. Health and safety issues, code compliance and weatherization will be addressed. This program is provided in the form of a deferred payment loan which will place a lien on the property. A deferred payment loan means that over a given period of time, the loan will be forgiven so long as the homeowner remains in the home as their only and primary residence. Once they receive this service, they may not be eligible for additional assistance until the loan has been forgiven. This recapture period is dependent upon the amount of funds invested into the home. STEP 3: Home Inspection The city will complete an inspection on the home. This inspection will help to determine what items will need to be completed on the home. Below is information to help determine what items are eligible under the requirements of the program. We would like to: Eliminate unsafe and hazardous conditions; Improve living conditions and extend the life of the home; Make the home accessible for family members with special needs; Bring the home to minimum safe property standards and local codes; Improve property values in the neighborhood; and Improve energy efficiency. Areas we can provide help include: The program will NOT: Electrical Accessibility Change of colors or styles Plumbing Insulation Cover routine maintenance Heating/Cooling Foundation Make the home look like new Roofing Bath facilities Walls Kitchen facilities Painting Hot water Windows/Doors Smoke alarms If the home was built before 1978, a Lead Paint Inspection will be conducted by a qualified contractor, as identified by the city. City of Apache Junction Housing Rehabilitation Program Guidelines, page 15 of 29

96 An Energy Audit will be conducted by a BPI certified contractor, as identified by the city. Information provided by from the audit will assist the HRPC will creating a project scope. STEP 4: Work Write-up and Bid Process After the inspections are complete a work write-up and cost estimate are determined to assist with the procurement of a contractor. The homeowner must approve the project scope prior to procuring a contractor. Priorities have been established for determining the work that will be completed in the eligible homes. 1. Code Violations 2. Issues of Health and Safety 3. Weatherization Standards/ Energy Efficiency 4. Improvements of a Cosmetic Nature The following must also be taken into consideration when determining the priority of items for inclusion in the work-write up (Scope of Work): 1. The age and the physical condition of the building; 2. The goal of the program (building revitalization or direct benefit); 3. Funds available for rehabilitation of each unit; and 4. Value of unit after rehabilitation. It is required that all projects competitively procure a licensed contractor to complete the work on the home. The city will assist the homeowner in this process. The following is the process that will take place when procuring a contractor. A notice will be placed on the city s website and in the newspaper advertising a mandatory pre-bid meeting to be held at the home. Contractors will arrive on that day along with the HRPC and will walk through the home and the work write up will be discussed. Each contractor will be required to submit a bid to the City of Apache Junction s Office of the City Clerk on the date and time specified in the advertisement. The contractor is not allowed to discuss any compensation with the homeowner. If the contractor has any questions regarding the project and/or the bidding procedures they must contact the HRPC. Once the bids have been received, the city will review the information and determine if the contractors are eligible to participate in the program. There are requirements that each contractor must have in order to be eligible. The City of Apache Junction is not the contractor, does not recommend contractors, does not choose the contractor and cannot guarantee the homeowner will be completely satisfied with the work completed. The HRP will however work closely City of Apache Junction Housing Rehabilitation Program Guidelines, page 16 of 29

97 with the homeowner to help solve any problems and will help ensure the work completed is functional, meets applicable codes and regulations, and is of quality. The HRP does however suggest the lowest most responsive bidder be the contractor awarded the project. Therefore the homeowner will be notified as to which contractor that is. However the homeowner will be signing the contract with the contractor and as such may select a qualified and eligible contractor to complete the work on their home. It should be noted if the selected contractor is not the lowest bidder, the homeowner will be required to pay the difference of the bid amounts. Once a contractor is selected all homeowners and the contractor will be asked to come to City Hall and sign the required contract documents. A notice to proceed will be issued after the documents have been executed. No work can begin until this has taken place. STEP 5: Construction The contractor will be issued the notice to proceed and given a time frame to complete the construction on the home. The homeowner is not authorized to make changes to the project scope of work. All requests for changes must come through the city s HRPC. STEP 6: Final Inspection The city will not release payment to the contractor until a final inspection has been completed on the home and the homeowner and city have signed off on the work completed. All concerns should be discussed during this final walk through with the contractor. Although there is a warranty on their workmanship, it is important to discuss any concerns as soon as possible. CONTRACTOR INFORMATION Work Write-up After the application has been received, the information verified and funding is available, the HRPC will make an inspection of the property and prepare a work write-up and cost estimate. Prior to creating the work write up, the city will request from a BPI certified contractor to complete an Energy Audit on the home (See Energy Efficiency Guidelines). The results of the audit will be incorporated into the work write up. The HRPC and homeowner will thoroughly discuss the work to be done. Once the project scope is approved by the homeowner, the city will competitively procure a qualified contractor that meets all of the procurement requirements of the city and the Arizona Department of Housing. Work write-ups will be completed by the HRPC. Specific building materials and building methods will be left up to the discretion of the HRPC but must meet ICC City of Apache Junction Housing Rehabilitation Program Guidelines, page 17 of 29

98 Standards. The City of Apache Junction Housing Rehabilitation Construction Guidelines will provide guidance on preparing the project scope. The HRPC will provide a rehabilitation cost estimate based on available information from recent projects completed. All new construction that requires substantial repair (more than 50%) of a system must meet the city s current building codes upon completion. The rehabilitated home should at a minimum meet Section 8 Housing Quality Standards and/or all city building codes, whichever is more restrictive, shall govern. The city wishes to encourage contractors to buy locally whenever possible. Request for bids An advertisement will be placed in the Arizona Republic a minimum of fourteen (14) days prior to the bid opening and/or an notification will be sent to contractor s listed on the Housing Rehabilitation Program s Bid List. The city will require bids from two or more licensed contractors to complete the work. Contractors will be required to meet all City of Apache Junction and Arizona Department of Housing requirements to be eligible to be awarded a contract. Requirements include a current City Privilege Tax License; a valid contractor license from the State of Arizona, listed on the Registrar of Contractors website and hold valid insurance. Additionally, any contractor participating in the rehabilitation program must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. The City of Apache Junction encourages minority contractor participation in all projects to include Disadvantaged Business Enterprises e.g. Small Business Enterprises, Minority-owned Business Enterprises, and Women-owned Business Enterprises. A copy of the City s Equal Employment Opportunity Policy is available on-line at Project walk-thru A mandatory pre-bid meeting will be scheduled prior to the acceptance of the bids to invite all potential contractors to the project site to review the project scope in order to offer an accurate quote. The pre-bid meeting will also be utilized to answer questions and offer information to the contractors and property owner. The contractor may not contact the homeowner prior to this meeting. Proposal submissions Proposals must be submitted by the date and time provided in the request for bids. All proposals must be submitted in a minimum 8 1/2 x 11 letter sized envelope with the words Sealed Bid Residential Rehab along with the address, and the name of the owner of the project being bid. This must be clearly printed on the face of the envelope. In addition, the name of the firm submitting the bid must be listed on the City of Apache Junction Housing Rehabilitation Program Guidelines, page 18 of 29

99 face of the envelope. Failure to comply with the requirements of this paragraph may result in such a bid being considered invalid and returned unopened to the sender. All bidders will be notified via of the bid awards. Addendums All addendums will be sent to interested bidders a minimum of 3 days prior to the bid opening via . Any changes in the finalized work write-up or specifications must be agreed upon in writing and signed by both the Homeowner and the HRPC before they become effective. No change orders will be approved or paid if the work was completed prior to signed approval by the HRPC. Change orders shall not exceed 10% of the total bid price unless the additional work was requested by the HRPC. No side agreements between the Contractor and Homeowner will be allowed. Codes and Standard Specifications The contractor is responsible for knowledge of the city s building codes. All work must conform to Apache Junction Building Codes and/or meet approved Uniform Building Codes unless otherwise specified in writing. The property standards that must be achieved as a result of assisted rehabilitation are established by the city s building codes, the Federal Housing Quality Standards and the Arizona Department of Housing s Housing Rehabilitation Standards, the Owner Occupied Housing Rehabilitation Weatherization Standards, and the City of Apache Junction Housing Rehabilitation Program Construction Guidelines. The city s Energy Efficiency requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. Privilege Tax License The contractor and all subcontractors must have an Apache Junction City privilege tax license prior to beginning work after being awarded a contract for services. Subcontractors must be named on the Contractor Bid Proposal. Bid Award Bid awards are done by the homeowner; however the City of Apache Junction s Housing Rehabilitation Program will recommend the lowest most responsible and responsive bidder. The City of Apache Junction s Housing Rehabilitation Program reserves the right to reject any and/or all bids for reasons included but not limited to the following: City of Apache Junction Housing Rehabilitation Program Guidelines, page 19 of 29

100 1. The contractor is not licensed or his license is suspended or has been barred from federal procurement or no procurement programs. 2. The contractor is not able to proceed with the project in a timely manner, has failed to complete past projects in a timely or workmanlike manner or has failed to respond appropriately to requests for warranty service. 3. The bid submitted is more than 15% above or below the estimate and may not be able to complete the project for this amount. 4. The Contractor has failed to provide lien waivers as required below or has had mechanic s liens filed by suppliers or subcontractors on past projects. 5. Bidding forms are improperly filled out, incomplete or not using the correct bidding forms provided. Owner Bid Rejection The owner may reject any or all bids without cause subject to the following provisions: 1. The owner may choose to reject the lowest bid and select a contractor other than the lowest bidder if the owner is willing to provide from his own funds an amount equal to the difference between the low bid and the selected bid. 2. The owner may reject all bids at any time up to three working days after the contract is closed. The contract will be between the homeowner and the contractor. However the contractor and homeowner may not discuss the award or non-award of the project until the city has completed the required procurement process. The city will serve only as an administrator/financier to the contract. The contractor must be a licensed contractor in the State of Arizona, hold a city business license, be in good standing with the Registrar of Contractors, and not appear on the excluded parties listing thus shall have a DUNS and CCR number. Delays in Awarding Contract Generally the contract will be closed and the work will begin within thirty (30) days of the date of bid submission. If thirty days has passed and no contract is signed, the Contractor may honor the original bid or withdraw the bid. If the Contractor chooses to withdraw the bid, the project will be offered to the next qualified low bid or a new bid process will begin. The HRPC reserves the right to negotiate any bid. Subcontractors All subcontractors shall be named within the proposal submittal including their ROC numbers. Upon award, subcontractors are required to submit certifications, hold a current City Privilege Tax License and a valid contractor license from the State of Arizona. Additionally, any subcontractor participating in the rehabilitation program City of Apache Junction Housing Rehabilitation Program Guidelines, page 20 of 29

101 must be verified as being eligible to receive federal funds, thus a DUNS and CCR number are required. Contractors or subcontractors who complete HVAC work must be BPI certified. Notice to Proceed The Notice to Proceed issued by the City of Apache Junction s HRPC will identify the start date. All construction must begin within seven (7) days. A pre-construction conference will be held between the homeowner, the contractor and HRPC to discuss work items, furniture moving, and other questions in need of clarification. All contractors will be required to secure a building permit from the city and post it at the site. Quality of Work Provided General Contractors, sub-contractors and their employees qualified to perform the installations for which they are responsible shall perform all work in a quality workmanlike manner. The job site is considered a federal location and must, at all times, be free from an individual chemical use. All moved or effected equipment shall be returned to a completely functional nature. The Contractor will make provisions for the fact that homeowners will, at all times, occupy this dwelling during the course of construction and need basic services at day s end. Permits The permit application for the project is prepared and submitted by the Contractor. The Building Permit will be issued upon receipt of payment from the Contractor. The permit must be picked up before beginning any work on the property. Follow the Building Department s procedures for scheduling inspections. The Contractor is responsible for all necessary inspections of the property. Clean-up The job site should be thoroughly cleaned during and upon completion of the project. All construction debris of every sort should be removed along with other debris that may have been on the property or collected during the work. Compact, grade and rake any area disturbed by construction for proper drainage. Construction debris is to be hauled to the landfill and disposed of in accordance with all local ordinances. Under no condition is debris to be left for city pick-up. Timely Manner Work should proceed in diligent manner after start-up. Progress inspections will be made almost daily. While material or subcontractor delays are sometimes City of Apache Junction Housing Rehabilitation Program Guidelines, page 21 of 29

102 unavoidable, extended periods without progress or repeated unnecessary delays in completing a project may constitute grounds for rejecting future bids. The contractor is expected to complete the job within the timeframe indicated in the contract. There is a two-year warranty on workmanship and materials. Owner Selections The homeowner is allowed to select the following items: 1. One interior paint color 2. Exterior wall and trim color 3. Counter top color 4. One carpet color 5. One floor tile (grout to be sealed) The contractor must supply the homeowner with a minimum of three (3) color samples. Payment No payments shall be made to the contractors without written approval from the HRPC and the homeowner, with the exception of disputed discrepancies which may be resolved and paid with the signature of the HRPC. The HRPC will monitor all rehabilitation work during construction. If progress payments are called for in the contract, the homeowner and the HRPC will make an inspection of the work outlined in the work write-up scheduled for completion before a progress payment will be made. A contractor may request a 50% draw when one-half of the contracted work is completed and a 40% draw when 90% if the work is completed. The city will hold 10% retention for up to thirty (30) calendar days at the end of the contract to cover closeout contingencies. The contractor must submit all lien waivers, warranties/guarantees prior to the release of the 10% retention. Warranties and Owners Manuals The contractor shall warrant all work for a period of two (2) years or more, exclusive of the manufacturer s warranty, from the date on the approval of the final inspection, which will be signed by the homeowner and the HRPC. Major systems or items necessary to make the property meet code should be analyzed on the basis of a three year life expectancy. Major systems include: roofs, heating, cooling, plumbing, water heaters, and electrical components. When included in a project, warranties for all items such a new appliances/hot water heaters shall be given to the HRPC by the contractor(s). All warranties will be provided to the homeowner. City of Apache Junction Housing Rehabilitation Program Guidelines, page 22 of 29

103 Final Inspection After the contractor has passed all permit inspections from the Building Department, please inform the HRPC so that a final inspection can be scheduled. Approval of the work by the city building inspector does not constitute acceptance of the workmanship by the Housing Rehabilitation Program or the homeowner. The HRPC will schedule for a post audit to be completed. All items identified by the BPI certified technician shall pass the inspection. If the improvements are not completed accordingly, the technician will identify the deficiency and the contractor will be required to make the necessary improvements to achieve the identified energy efficiency goals. No change order may be requested to cover the costs of redoing any work previously recommended. Upon the homeowner s acceptance of the work completed, final payment will be issued after final invoice and lien waiver are presented to the HRPC. Final payment can be expected within 30 days of work completion and successful final inspection. In the event of any dispute between the owner and the contractor concerning the completion of rehabilitation, the HRPC will work with both parties to negotiate a satisfactory solution. If a solution cannot be arrived at, a grievance can be filed as outlined below. HOUSING MAINTENANCE AND HOMEOWNERSHIP EDUCATION In addition to warranty brochures, the HRPC and Contractor shall conduct training in the home to instruct the homeowners on the new equipment, appliances and general housing maintenance counseling on items that had been installed in the home. The city will provide a home maintenance document. The city s housing program also provides a Housing Programs and Services Newsletter on a quarterly basis for all housing rehabilitation program recipients. Homeownership Counseling is currently provided by the Arizona Department of Housing and/or their designee. ENERGY EFFICIENCY GUIDELINES The HRPC will write the bid specifications to include energy efficiency measures as required by the Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards. Detailed information pertaining to the Energy Efficiency requirements can be found in the city s Housing Rehabilitation Program Construction Guidelines. The City s requirements incorporate the following standards: BPI/BA Standards, IECC 2009, ASHRAE , Energy Star, and Standardized Work Specification. City of Apache Junction Housing Rehabilitation Program Guidelines, page 23 of 29

104 LEAD BASED PAINT REQUIREMENTS/ PRE-1978 HOUSING On September 15, 1999, HUD published a Final Rule at 24 CFR Part 35 to implement new regulations with regard to lead-based paint in compliance with the Residential Lead-Based Paint Hazard Reduction Act of This Rule was effective on September 15, ADOH received permission from HUD to defer implementation of this Rule until January 10, As of January 10, 2002, any CDBG or HOME awards made by the ADOH after January 10, 2002, and used to fund housing rehabilitation projects are required to comply with these lead-based paint requirements. However, CDBG or HOME awards made by the ADOH before January 10, 2002, and used to fund housing rehabilitation projects, whether or not the actual projects have been started, will not be subject to these requirements. In order to comply and implement these lead-based paint requirements, the HRP shall use as guidance the ADOH Housing Bulletin #1 issued by the Office of Housing Development ( OHD ) on December, The HRP shall specifically adhere to the evaluation, disclosure, work requirements, and clearance procedures contained in this Bulletin. Any interim control or abatement procedures of lead-based paint hazards as prescribed by HUD requirements shall be included in the scope of work. The HRP shall also attempt to obtain lead-based paint general liability insurance for lead-based paint hazards and encourage contractors to secure lead-based paint hazard liability insurance. The HRPC will provide the homeowner with the EPA/HUD Pamphlet Protect Your Family from Lead in Your Home. The HRPC shall also provide the homeowner with the Lead Based Paint Notification for the homeowner s review and signature. The HRPC shall specifically review the notification form with the homeowner and make every effort to ensure the homeowner is aware of the hazards and ways to avoid lead based paint poisoning. The executed notification is retained in the homeowner/client s file and a copy is provided to the client. If lead based paint hazards are identified and treated by a certified lead based paint risk Assessment Company, the HRPC shall meet with the recipient and discuss the findings contained in a Risk Assessment Report. The recipient shall also sign off on the report to reflect that the findings contained in the Risk Assessment Report were explained and discuss with the recipient. The Risk Assessment Report shall then become a part of the recipient s file. All brochures regarding lead-based paint hazards are available in alternate format for non-english Spanish speaking persons upon request. CONFLICTS OF INTEREST 1) Any person who is an employee, agent, consultant, officer, or elected or appointed official of the City may not obtain a personal or financial interest or benefit from this activity, nor may they have an interest whatsoever, however remote, in a contract, subcontract or proceeds either for themselves, their City of Apache Junction Housing Rehabilitation Program Guidelines, page 24 of 29

105 family or business ties during their tenure, or for one year thereafter. 2) No contract will be awarded to a contractor who is related, or whose employee is related to the applicant by blood or marriage. Upon written request to the HRP in care of the Apache Junction Development Services Department, the Development Services Director, or his/her designee, will determine if a conflict exists. COMPLAINT AND GRIEVANCE PROCEDURE Applicants, Program participants, or contractors may initiate a complaint by submitting concerns in writing to the City of Apache Junction Development Services Director, or his/her designee, at 300 East Superstition Boulevard, Apache Junction, Arizona The Development Services Director, or his/her designee, is responsible for receiving, reviewing, and responding to all complaints including prequalification of applicant or contractor qualification. The City must issue a written response to any complaint within ten (10) working days of receipt. If unsatisfactory to the complainant, a written appeal of the City s response shall be filed within ten (10) working days of receipt of the City s response. Appeals shall be made to the City Manager, by sending such appeal to 300 East Superstition Boulevard, Apache Junction, Arizona, Attn: City Manager. The City Manager shall be the final administrative decision maker. Further judicial appeals shall be in accordance with A.R.S. Title 12, Assistance from the City in preparing a grievance is available at no charge if needed due to either a disability or language limitation. Assistance will be provided through the Development Services Department at (480) TDD (480) ; FAX (480) or 300 East Superstition Boulevard, Apache Junction, Arizona Additionally, the City of Apache Junction has adopted an internal complaint procedure providing for prompt and equitable resolution of complaints alleging any action prohibited by the federal regulations implementing Title II of the Americans with Disabilities Act ( ADA ) and Title VI of the Civil Rights Act of 1964, as amended. Title II states, in part that "no otherwise qualified disabled individual shall, solely by reason of disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination" in programs or activities sponsored by the city. All ADA and Civil Rights complaints made against the city, its employees, representatives, and contractors relating to facilities, programs, services and projects, shall be required to adhere to this process in order to file a grievance. City of Apache Junction Housing Rehabilitation Program Guidelines, page 25 of 29

106 All equal employment opportunity complaints shall be filed with the Human Resources Department and may not be handled in the same manner as ADA and Civil Rights complaints under Titles II and VI. Civil rights complaints are valid when the legal basis for the complaint is due to discrimination on the basis of race, color, national origin, religion, sex, disability, or familial status. Depending on the complaint, the following persons shall be responsible for determining a resolution: Complaints filed against the city whether a city program, service or project, will be reviewed by the ADA and Civil Rights Coordinator ( ACRC ) and forwarded to any applicable state and/or federal agency as required under their guidelines. Additionally, the Arizona Department of Transportation ( ADOT ) Civil Rights Office will be provided all civil rights complaints regardless of the nature of the complaint relevant to a project funded in whole or in part by ADOT funding. ADOT will then follow their procedures to determine if the complaint is relevant to their area of jurisdiction. Subsequently, the ACRC and/or ADOT will make a determination and resolve the complaint within 60 calendar days. Complaints filed against a contractor hired by the city shall be reviewed by the ACRC and a copy shall be provided to ADOT within 60 days. The complaint will be reviewed, investigated and resolved within 60 calendar days. Complaints should be addressed to: Bryant Powell, ADA and Civil Rights Coordinator, 300 East Superstition Blvd., Apache Junction, Arizona, 85119, (480) A complaint shall be filed in writing or digitally. It must contain the name and address of the complainant, and describe the nature and the date of the alleged violation of the regulations. The complaint must be signed by the complainant or by someone authorized to do so on his or her behalf. A complaint form is available on-line at or by asking any city staff member. 2. A complaint must be made within 30 calendar days after the complainant becomes aware of the alleged violation. 3. The ACRC will call or meet with the complainant no later than 8 city working days after receipt of the complaint. An investigation, if needed or if appropriate, may follow the meeting. The investigation shall be conducted by the ACRC. Any investigation should be informal but thorough, affording all City of Apache Junction Housing Rehabilitation Program Guidelines, page 26 of 29

107 interested persons an opportunity to submit information relevant to the complaint. 4. The ACRC shall issue, as soon as possible, but not later than 30 calendar days after the complaint is received, a letter or acknowledging the complaint, which includes a description of the resolution to the complaint. The decision of the ACRC shall be binding and final subject only to an appeal pursuant to A.R.S , et. seq. 5. The ACRC shall retain all complaint records and associated documents pursuant to the city s record retention requirements, and shall dispose of them in accordance with such policy. 6. The right of a person to file a complaint under this procedure shall not affect the complainant's right to pursue other remedies such as filing of a complaint with the responsible federal or state agency. Use of this grievance procedure shall not extend the time for filing any complaint with the responsible federal or state department or agency. MARKETING The Housing Rehabilitation Program will be marketed using the following media: Brochures, Flyers, City of Apache Junction Website, the Housing Programs and Services Newsletter, The Citizen (Parks & Recreation Publication), City of Apache Junction s Cable Channel, the city s grants blog and local newspapers including AJ News and the Independent. Direct marketing to neighborhoods may also be conducted by mailing a postcard to residents within a targeted area notifying them of the city s programs. Distribution of marketing materials will be through a local network of human/social services agencies and at general posting locations throughout the city which include but are not limited to the outlets below: Human/Social Service Agencies TRIAD Neighborhood Watch Groups Pinal County Housing Pinal County Volunteer Center CAAFA CAAG RSVP Program ABIL CAHRA Salvation Army Area HOA s Apache Junction Food Bank Boy s and Girl s Club Project Help HOPE Women s Center Apache Junction Senior Center Apache Junction School District Apache Junction Community Development Corporation Apache Junction Chamber of Commerce City of Apache Junction Housing Rehabilitation Program Guidelines, page 27 of 29

108 Central Arizona Council on Development Disabilities City of Apache Junction Victim Assistance (Police Department) City of Apache Junction Victim Advocate (City Attorney s Office) Superstition Mountain Mental Health Center Posting Locations City Hall Parks and Recreation Library Multigenerational Center The City will make every effort to accommodate persons with disabilities and non- English speaking persons. See the section entitled Assistance to Applicants for additional information. STAFFING AND ADMINISTRATIVE REVIEW All administrative and supervisory work will be done by city staff. Procedures to protect applicants, HRP participants, and contractors are outlined in the sections entitled Complaint and Grievance Procedure and Non-Discrimination. The City of Apache Junction s HRPC will be responsible for the following: application intake; income verification; case management; contractor procurement; change order approvals; and final inspection. The HRPC can be reached at 300 East Superstition, Apache Junction, Arizona The HRPC can also be contacted at (480) or TDD (480) City Manager Assistant City Manager Development Svcs. Director Finance Director Revenue Dev. Manager Program Coordinator NON DISCRIMINATION The City of Apache Junction, or any of its sub recipients, do not discriminate in any activity on the basis of race, color, religion, sex, disability, familial status, or national origin. The City of Apache Junction is an Equal Opportunity Employer, Minority Contractors participation is encouraged DBE/MBE/WBE. A copy of the City s Equal Employment Opportunity Policy is available on-line at City of Apache Junction Housing Rehabilitation Program Guidelines, page 28 of 29

109 ASSISTANCE TO APPLICANTS Should an individual need assistance in preparation of an application, assistance will be provided, at no charge, through the Development Services Department. The Department can be reached at 300 East Superstition, Apache Junction, Arizona Assistance can also be requested at (480) or TDD (480) Applicants may request assistance because of a: 1) physical/mental/ emotional disability or 2) limited ability to speak/read English. FAIR LABOR STANDARDS The provisions of the FLSA are not applicable to the rehabilitation of single family homes under this program. APPLICABLE DOCUMENTS The city s HRP uses guidance from the following sources of information pertaining to the administration of the HRP: 1) Arizona Department of Housing Owner Occupied Housing Rehabilitation Standards 2) United States Department of Housing and Urban Development Housing Quality Standards. 3) United States Environmental Protection Agency Information regarding Lead Based Paint. 4) Arizona Department of Housing, State Housing Fund Program Summary and Application Guidelines. 5) Arizona Department of Housing Community Development Block Grant Handbooks. 6) Arizona Department of Housing Owner Occupied Housing Rehabilitation Weatherization Standards. 7) City of Apache Junction City Ordinances and adopted Building Codes. 8) City of Apache Junction Housing Rehabilitation Program Construction Guidelines. CHANGES TO HOUSING REHABILITATION PROGRAM GUIDELINES The Housing Rehabilitation Program Guidelines are generally adopted with revisions annually, however should an emergency change within the Housing Rehabilitation Guidelines as adopted by the city council be required throughout the program year, the Mayor shall submit a letter in writing to the Arizona Department of Housing ten (10) days prior to the change coming into effect. City of Apache Junction Housing Rehabilitation Program Guidelines, page 29 of 29

110 FORMS A complete packet of forms utilized by the City s Housing Rehabilitation Program are available upon request. Below is the listing of those forms. Form Application which includes: Authorization for Release of Info, Verification of Employment, Affidavit of Non-Income, Declaration of Citizenship Income Verification Determination Sheet Agreement which includes: Certification of Principal Residence, Federal Assistance Notice, Complaint and Grievance Procedure, Disclaimer Development Services Due Diligence Form Work Write Up including cost estimates Owner Acceptance of Work Write Up Contractor Participation Statement Contract between Contractor and Owner Owner s Color Preference Verification Change Orders Final Acceptance of Work Completed Final Invoice and Waiver of Lien Truth In Lending Form, Right of Rescission, Promissory Note, Deed of Trust, Release of Lien City of Apache Junction Housing Rehabilitation Program Guidelines, page 30 of 29

111 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 6. File ID: Sponsor: Bryant Powell Index: Agenda Date: 1/20/2015 In Control: City Council Meeting City manager's report. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

112 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 7. File ID: Sponsor: Janine Solley Index: Agenda Date: 1/20/2015 In Control: City Council Meeting Update and discussion on the Arizona Office of Tourism Marketing Cooperative. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

113 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 8. File ID: Sponsor: Kathy Connelly Index: Local/State/Federal Statutory Requirement Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of and action on the application for a special event liquor license for Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S. Goldfield Road. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

114 JANUARY 7, 2015 MEMORANDUM TO: THROUGH: THROUGH: FROM: HONORABLE MAYOR AND CITY COUNCIL MEMBERS GEORGE R. HOFFMAN, CITY MANAGER KATHLEEN CONNELLY, CITY CLERK JAN MASON, DEPUTY CITY CLERK SUBJECT: AGENDA ITEM FOR JANUARY 20, 2015: APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO An application for a Special Event Liquor License has been submitted by Ms. Dena Kimble of the Cactus Canyon Junior High PTO for February 28, 2015, at 3301 S. Goldfield Road, Apache Junction. Correspondence has been received from the building division, planning division, police department and fire district, a copy of which is attached. The next step in the procedure is for the city council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the state department of liquor licenses and control.

115 FOR DLLC USE ONLY Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix AZ (602) Event date(s): Event time start/end: APPLICATION FOR SPECIAL EVENT LICENSE Fee= $25.00 per day for 1-10 days (consecutive) A service fee of $25.00 will be charged for all dishonored checks (A.R.S ) IMPORTANT INFORMATION: This document must be fully completed or it will be returned. The Department of Liquor Licenses and Control must receive this application ten (10) business days prior to the event. If the special event will be held at a location without a permanent liquor license or if the event will be on any portion of a location that is not covered by the existing liquor license, this application must be approved by the local government before submission to the Department of Liquor Licenses and Control (see Section 15). SECTION 1 Name of Organization: C.- 4c._ LA.S C 4 c. SECTION 2 Non-Profit/IRS Tax Exempt Number: 7/.=;._s-f- SECTION 3 The organization is a: (check one box only) M/Charitable (501.C) D Fraternal (must have regular membership and have been in existence for over five (5) years) OReligious OCivic (Rotary, College Scholarship) OPolitical Party, Ballot Measure or Campaign Committee SECTION 4 Will this event be held on a currently licensed premise and within the already approved premises? OYes IJNo Name of Business License Number Phone (include Area Code) SECTION 5 How is this special event going to conduct all dispensing, serving, and selling of spirituous liquors? Please read R for explanation (look in special event planning guide) and check one of the following boxes. ElPlace license in non-use Dispense and serve all spirituous liquors under retailer's license rierspense and serve all spirituous liquors under special event OSplit premise between special event and retail location (If not using retail license, submit a letter of agreement from the agent/owner of the licensed premise to suspend the license during the event. If the special event is only using a portion of premise, agent/owner will need to suspend that portion of the premise.) SECTION 6 What is the purpose of this event? en-site consumption ElOff-site (auction) ElBoth SECTION 7 Location of the Event: Do /c e, Address of Location:,33o/ Go/c1 /e/ /51/742c ,-,e4 a Street City County/State Zip SECTION 8 Will this be stacked with a wine festival/craft distiller festival? OYes 1NrNo SECTION 9 Applicant must be a member of the qualifying organization and authorized by an Officer, Director or Chairperson of the Organization named in Section 1. (Authorizing signature is required in Section 13.) 1. Applicant: /11 ;/19 /1.9"-e..2 / Last First Middle Date of Birth 2. Applicant's mailing address:.393/ A%,.Jc_7ic>"2 /1. 6P. Street City State Zip 3. Applicant's home/cell phone: (Y.) Spa.o2yp,/ Applicant's business phone: ( 4. Applicant's address: /re I'd 10/17/14 Page 1 of 4 Individuals requiring ADA accommodations call 1602)

116 SECTION Has the applicant been convicted of a felony, or had a liquor license revoked within the last five (5) years? El Yes cirn o (If yes, attach explanation.) 2. How many special event licenses have been issued to this location this year? (The number cannot exceed 12 events per year; exceptions under A.R.S (D).) 3. Is the organization using the services of a promoter or other person to manage the event? ElYes eio (If yes, attach a copy of the agreement.) 4. List all people and organizations who will receive the proceeds. Account for 100% of the proceeds. The organization applying must receive 25% of the gross revenues of the special event liquor sales. Attach an additional page if necessary. Name C4c C /,, D,i-/-67 Percentage C7C2 Address Fc/ SO F 4. /?c - Street City State Zip Name Address Percentage Street City State Zip 5. Please read A.R.S Special event license; rules and R Requirements for a Special Event License. Note: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY. "NO ALCOHOLIC BEVERAGES SHALL LEAVE SPECIAL EVENT UNLESS THEY ARE IN AUCTION SEALED CONTAINERS OR THE SPECIAL EVENT LICENSE IS STACKED WITH WINE /CRAFT DISTILLERY FESTIVAL LICENSE" 6. What type of security and control measures will you take to prevent violations of liquor laws at this event? (List type and number of police/security personnel and type of fencing or control barriers, if applicable.) Number of Police Number of Security Personnel OFencing OBarriers Explanation: /-/. "V S /Li AC-1 4. e_ r C e_. SECTION 11 Date(s) and Hours of Event. May not exceed 10 consecutive days. See A.R.S (15) and (17) for legal hours of service. Event Start Date Day of Week Time AM/PM DAY 1: DAY 2: Xs'.5797K,,,r-c/-97-7 License End Time AM/PM DAY 3: DAY 4: DAY 5: DAY 6: DAY 7: DAY 8: DAY 9: DAY 10: 10/17/14 Page 2 of 4 Individuals requiring ADA accommodations call (602)

117 SECTION 12 License premises diagram. The licensed premises for your special event is the area in which you are authorized to sell, dispense or serve alcoholic beverages under the provisions of your license. The following space is to be used to prepare a diagram of your special event licensed premises. Please show dimensions, serving areas, fencing, barricades, or other control measures and security position. NT 10/17/14 Page 3 of 4 Individuals requiring ADA accommodations call 1602)

118 514,2 TABLE LAYOUT , ntai-0 (i op CC

119 SECTION 13 This section is to be completed only by an Officer, Director or Chairperson of the organization named in Section 1. I, declare that I am an OFFICER, DIRECTOR, or CHAIRPERSON (Print full name) appointing the applicant listed in Section 9, to apply on behalf of the foregoing organization for a Special Event Li or License. (Signa The foregoing instrument was acknowledged before me this State,N,1\ ACA_ County of 1/ kl.ktuc f4te s r ci4,4,7 / Lip; Ff-e, Title/ Position Date Phone # /1( )Y -N. Day TT-17P My Commission Expires on: 1// 6-1-) - / Date Signature of Notary Public ly SECTION 14 This section is to be completed only by the applicant named in Section 9. Le_ declare that I am the APPLICANT filing this application as (Print full name) listed in Section 9. I have read the application and the contents and all statements are true, correct and plete. The foregoing instrument was acknowledged before me this S C( --e (ike' I1/ Title/ Position Date Phone # r\g Day Month Year State, vq0 County " 1 C My Commission Expires on: 1 are Signature of Notary Public The local governing body may require additional applications to be completed and submitted. Please check with local government as to how far in advance they require these applications to be submitted. Additional licensing fees may also be required before approval may be granted. For more information, please contact your local jurisdiction: docs/spec event links.pdf. SECTION 15 Local Governing Body Approval Section (government official) (Title) recommend EIAPPROVAL 0 DISAPPROVAL on behalf of (City, Town, County) Signature Date Phone FOR DEPARTMENT OF LIQUOR LICENSES AND CONTROL USE ONLY 0APPROVAL 0 DISAPPROVAL BY: DATE: 10/17/14 Page 4 of 4 Individuals requiring ADA accommodations call (602)

120 rdy OP lit ill/ eil,&oill/mca041/ Home of the Superstition Mountains December 22, 2014 Cactus Canyon Junior High PTO, Inc. Attn: Dena Marie Kimble 3931 N. Marlow Apache Junction, AZ Dear Ms. Kimble: Please be advised that your application for a Special Event Liquor License for the Cactus Canyon Junior High PTO, Inc. for February 28, 2015 at 3301 S. Goldfield Road has been scheduled for a public hearing. The Apache Junction City Council will hold a public hearing on January 20, 2015, at 7:00 p.m. in the City Council Chambers, 300 E. Superstition Blvd., Apache Junction, at which time recommendation for approval or disapproval will be made to be forwarded to Arizona Department of Liquor Licenses and Control. Your attendance is requested should council have any questions on this application. If you have any questions concerning this matter, please contact my office at (480) Sincerely, G. Kathleen Conne11 City Clerk Voice (480) FAX (480) TDD (480) E. Superstition Boulevard, Apache Junction, AZ 85119

121 DECEMBER 22, 2014 MEMORANDUM TO: THROUGH: FROM: SUBJECT: DEPARTMENT OF PUBLIC SAFETY BUILDING DIVISION PLANNING DIVISION APACHE JUNCTION FIRE DISTRICT KATHLEEN CONNELLY, CITY CLERK JAN MASON, DEPUTY CITY CLERK APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR CACTUS CANYON JUNIOR HIGH PTO, INC. Ms. Dena Marie Kimble has submitted an application for a Special Event Liquor License for February 28, 2015 at 3301 S. Goldfield Road, Apache Junction. Please conduct the necessary inspections and submit your recommendation be by Wednesday, January 7, no later than noon, in order for this item to be placed on the agenda for the City Council meeting of January 20, 2015.

122 Janet Mason From: Dennis Dixon Sent: Tuesday, December 23, :07 PM To: Janet Mason Subject: RE: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application No concerns From: Janet Mason Sent: Tuesday, December 23, :13 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application I have received an application for a special event liquor license for Cactus Canyon Junior High PTO. Please have your department recommendation to me no later than Wednesday, January 7, in order to this to be on the January 20 agenda. Thanks. 1

123 Janet Mason From: Rudy Esquivias Sent: Wednesday, January 07, :01 PM To: Janet Mason; Dennis Dixon; Jeff Robinson; John Suniga Subject: RE: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application Jan: The Planning Division has no objections to this one-time event. Any event day signage should be kept on private property (not in the right-of-way) and be removed immediately following the event. Thanks. Ads cp?uiviab Senior Planner/Zoning Administrator City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ resquivias@ajcity.net SERVICE OVER AND ABOVE THE REST (Development Services Department office hours: Monday through Thursday from 7:00am to 6:00pm, closed Fridays and Holidays.) From: Janet Mason Sent: Tuesday, December 23, :13 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application I have received an application for a special event liquor license for Cactus Canyon Junior High PTO. Please have your department recommendation to me no later than Wednesday, January 7, in order to this to be on the January 20 agenda. Thanks. 1.

124 Janet Mason From: Jeff Robinson Sent: Wednesday, December 24, :33 AM To: Janet Mason Cc: Thomas Kelly; Troy Mullender Subject: RE: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application Janet, I met with Pat at Dolce Vita in reference to this event. In the application Cactus Canyon list that they are going to hire a bartending service for the event. I explained that if a bartending company was going to serve alcohol at their facility that the bartending license must be displayed a the location of the bar or service window. If this requirement is met the police department has no objection to the special event liquor license for Cactus Canyon Junior High PTO. From: Janet Mason Sent: Tuesday, December 23, :13 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga@sfmd.az.gov) Subject: application for a special event liquor license for Cactus Canyon Junior High PTO - correct application I have received an application for a special event liquor license for Cactus Canyon Junior High PTO. Please have your department recommendation to me no later than Wednesday, January 7, in order to this to be on the January 20 agenda. Thanks. 1

125 Superstition Fire & Medical District 3700 E. 16 th Avenue, Apache Junction, AZ Phone (480) , Fax (480) MEMORANDUM TO: FROM: Jan Mason, Deputy City Clerk City of Apache Junction 300 E. Idaho Road Apache Jct., AZ John Suniga, Deputy Fire Marshal DATE: December 24, 2014 SUBJECT: Application for Special Event Liquor License for 3301 S. Goldfield The Superstition Fire/Medical District has reviewed the application as noted above regarding the facilities at 3301 S. Goldfield for an event to be held on February 28th, We have recently completed an annual fire and life safety inspection with no major violations found. We therefore would recommend approval of this application. Thank you for your notification on this matter. If you have any further questions regarding this inspection, please feel free to contact my office at Thank You. ATTN: Application

126 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 9. File ID: Sponsor: Kathy Connelly Index: Local/State/Federal Statutory Requirement Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of and action on the application for a special event liquor license for Superstition Mountain Rotary Club for Lost Dutchman Days on February 27 - March 1, 2015, at 1590 E. Lost Dutchman Boulevard. The next step in the process is for the council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

127 JANUARY 7, 2015 MEMORANDUM TO: THROUGH: FROM: HONORABLE MAYOR AND CITY COUNCIL MEMBERS KATHY CONNELLY, CITY CLERK JANET R. MASON, DEPUTY CITY CLERK SUBJECT: AGENDA ITEM FOR JANUARY 20, 2015: APPLICATION FOR A SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB An application for a special event liquor license has been submitted by Mr. Michael Cowan of Superstition Mountain Rotary Club for the Lost Dutchman Days special event on February 27-March 1, 2015 at 1590 E. Lost Dutchman Boulevard, Apache Junction, Arizona. Correspondence has been received from the planning division, building division and police department, a copy of which is attached. The fire district is still pending and will be forwarded upon its receipt. The next step in the procedure is for the city council to hold a public hearing on the application and make a recommendation for approval or denial to be forwarded to the Arizona Department of Liquor Licenses and Control.

128 FOR DLLC USE ONLY Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix AZ (602) Event date(s): Event time start/end: APPLICATION FOR SPECIAL EVENT LICENSE Fee= $25.00 per day for 1-10 days (consecutive) A service fee of $25.00 will be charged for all dishonored checks (A.R.S. ' ) IMPORTANT INFORMATION: This document must be fully completed or it will be returned. The Department of Liquor Licenses and Control must receive this application ten (10) business days prior to the event. If the special event will be held at a location without a permanent liquor license or if the event will be on any portion of a location that is not covered by the existing liquor license, this application must be approved by the local government before submission to the Department of Liquor Licenses and Control (see Section 15). SECTION 1 Name of Organization: Superstition Mountain Rotary Club #1246 District 5510 SECTION 2 Non-Profit/IRS Tax Exempt Number: SECTION 3 The organization is a: (check one box only) EICharitable (501.C) 0Fraternal (must have regular membership and have been in existence for over five (5) years) El Religious CI Civic (Rotary, College Scholarship) 0Political Party, Ballot Measure or Campaign Committee SECTION 4 Will this event be held on a currently licensed premise and within the already approved premises? 0Yes 111No Name of Business License Number Phone (include Area Code) SECTION 5 How is this special event going to conduct all dispensing, serving, and selling of spirituous liquors? Please read R for explanation (look in special event planning guide) and check one of the following boxes. O Place license in non-use 0Dispense and serve all spirituous liquors under retailer's license Dispense and serve all spirituous liquors under special event 0Split premise between special event and retail location (If not using retail license, submit a letter of agreement from the agent/owner of the licensed premise to suspend the license during the event. If the special event is only using a portion of premise, agent/owner will need to suspend that portion of the premise.) SECTION 6 What is the purpose of this event? 111On-site consumption [30ff-site (auction) 0Both SECTION 7 Location of the Event: Apache Junction Rodeo Grounds Address of Location: 1590 E Lost Dutchman Blvd Apache Junction Arizona Pinal Street City County/State Zip SECTION 8 Will this be stacked with a wine festival/craft distiller festival? 0Yes in No SECTION 9 Applicant must be a member of the qualifying organization and authorized by an Officer, Director or Chairperson of the Organization named in Section 1. (Authorizing signature is required in Section 13.) 1. Applicant: Cowan Michael Bernard 9/14/1954 Last First Middle Date of Birth 2. Applicant's mailing address: E Pacana Ct Gold Canyon Az Street City State 3. Applicant's home/cell phone: ( 480 ) Applicant's business phone: ( n/a 4. Applicant's address: mbcowan1@msn.com 10/17/14 Page 1 of 4 Individuals requiring ADA accommodations call (602) Zip

129 SECTION 10 I. Has the applicant been convicted of a felony, or had a liquor license revoked within the last five (5) years? DYes No (If yes, attach explanation.) 2. How many special event licenses have been issued to this location this year? 2 (The number cannot exceed 12 events per year; exceptions under A.R.S (D).) 3. Is the organization using the services of a promoter or other person to manage the event? ElYes BNo (If yes, attach a copy of the agreement.) 4. List all people and organizations who will receive the proceeds. Account for 100% of the proceeds. The organization applying must receive 25% of the gross revenues of the special event liquor sales. Attach an additional page if necessary. Name Superstition Mountain Rotary Club # % gross Percentage Address Po Box 565 Apache Junction Az Street City State Zip Name NJ Mounted Rangers/Superstition Promo Corp. Percentage 25%/25% net each = 50% net Address Po Box 699 / Po Box 5241 Apache Junction Az Street City State Zip 5. Please read A.R.S Special event license; rules and R Requirements for a Special Event License. Note: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY. "NO ALCOHOLIC BEVERAGES SHALL LEAVE SPECIAL EVENT UNLESS THEY ARE IN AUCTION SEALED CONTAINERS OR THE SPECIAL EVENT LICENSE IS STACKED WITH WINE /CRAFT DISTILLERY FESTIVAL LICENSE" 6. What type of security and control measures will you take to prevent violations of liquor laws at this event? (List type and number of police/security personnel and type of fencing or control barriers, if applicable.) on call Number of Police 20 Number of Security Personnel Fencing Barriers Explanation: Trained AJ Rangers (mounted and uniformed) will provide security. Potential underage drinkers are required to verify age with picture ID. Will be wrist banded after proving age. Alcohol may not be brought in or removed from event area. AJ Police will be requested if needed. SECTION 11 Date(s) and Hours of Event. May not exceed 10 consecutive days. See A.R.S (15) and (17) for legal hours of service. Event Start Date Day of Week Time AM/PM DAY I: DAY 2: License End Time AM/PM Feb. 27, 2015 Friday 10:00 AM 11:59 PM Feb. 28, 2015 Saturday 10:00 AM 11:59 PM DAY 3: Mar. 1, 2015 Sunday 10:00 AM 11:59 PM DAY 4: DAY 5: DAY 6: DAY 7: DAY 8: DAY 9: DAY 10: 10/17/14 Page 2 of 4 Individuals requiring ADA accommodations call (602)

130 Special Event Diagram (Show dimensions, serving areas, and label type of endoeure and security positions) NOTE: Show newest cross streets, highway, or toad if location doesrft have an address. pogiv4- pitakii, KWAirrEla 0.4r0 # A fisouct mtlaise_611m..: Nos 'PTV cearrea qr. cetafresnor MENA 1 pourmvea G-41E4 IIIASAVEn 641:e." I Affibrzo 6ATE Loam) cor-e- /-05 r Tc,1074#, 841,40 A 8E-PA srowo5 apae -Dwurer popfo Evreir k Etzeg 51*00 0 Pert/ _ ro4 Rc pastece -0-8E: #05 OPE*/ 771gottersq Our EvEvr Pimfm-k- camp GOMOVO R cbe Es'sr Aturikve-ohrivr Rif prespb.verz... meg" $u1347ēt 7c.Ev&Āier Ljoat tied:5196i**

131 SECTION 13 This section is to be completed only by an Officer, Director or Chairperson of the organization named in Section 1.. I declare that I am an OFFICER, DIRECTOR, or CHAIRPERSON (Print full name) appointing the applicant listpd in Section 9, to apply on behalf of the foregoing organization for a Special Event Liquor 1 ic4nse./7 X 7/\ ( (Signature)'" Title/ Position Date Phone # - The foregoing instrument was acknowledged before me this Sate County of Day Month Year My Commission Expires on: Date Signature of Notary Public SECTION 14 This section is to be completed only by the applicant named in Section 9. Michael Bernard Cowan declare that I am the APPLICANT filing this application as (Print full name) listed in S on 9. I ave rea e application and the contents and all statements are true, correct and comp KnatureT". Chairperson 12/18/ Title/ Position Date Phone # The fo going instrument was acknowledged before me this S to County of My Commission Expires on: IA ILA Date Day -1)et Signature of Nota Public Mum N. Cox Notary Public Pinal County, Arizona My Comm. Expires April 14, ; 018 The local governing body may require additional applications to be completed and submitted. Please check with local government as to how far in advance they require these applications to be submitted. Additional licensing fees may also be required before approval may be granted. For more information, please contact your local jurisdiction: docs/spec event links.pdf. SECTION 15 Local Governing Body Approval Section (government official) (Title) recommend 0APPROVAL 0 DISAPPROVAL on behalf of (City, Town, County) Signature Date Phone FOR DEPARTMENT OF LIQUOR LICENSES AND CONTROL USE ONLY 0APPROVAL 0 DISAPPROVAL BY: DATE: 10/17/14 Page 4 of 4 Individuals requiring ADA accommodations call (602)

132 rat, 49P di-i et eft P4f1/11/ Home of the Superstition Mountains December 23, 2014 Michael Cowan Superstition Mountain Rotary Club # E. Pacana Court Gold Canyon, AZ Dear Mr. Cowan: Re: Application for Special Event Liquor License Please be advised that your application for a Special Event Liquor License for Lost Dutchman Days for February 27-March 1, 2015 has been scheduled for a public hearing. The public hearing will be at the Apache Junction City Council regular meeting on January 20, 2015, at 7:00 p.m., at the City Council Chambers, 300 E. Superstition Blvd., Apache Junction, at which time a recommendation for approval or disapproval will be made to be forwarded to Arizona Department of Liquor Licenses and Control. It is strongly recommended that you attend this meeting in the event that council has some questions on this application. If you have any questions concerning this matter, please contact my office at , option 5. Sincerely, Kathleen Connelly City Clerk Voice (480) FAX (480) TDD (480) E. Superstition Boulevard, Apache Junction, AZ 85119

133 DECEMBER 23, 2014 MEMORANDUM TO: THROUGH: FROM: SUBJECT: DEPARTMENT OF PUBLIC SAFETY PLANNING DIVISION APACHE JUNCTION FIRE DISTRICT KATHLEEN CONNELLY, CITY CLERK JAN MASON, DEPUTY CITY CLERK APPLICATION FOR SPECIAL EVENT LIQUOR LICENSE FOR SUPERSTITION MOUNTAIN ROTARY CLUB #1246 Mr. Michael Cowan has submitted an application for a special event liquor license for February 27-March 1, 2015, for Lost Dutchman Days, located at 1590 E. Lost Dutchman Boulevard, Apache Junction, Arizona. Please conduct the necessary inspections and submit your recommendation by Wednesday, January 7, 2015, in order for this to be heard at the city council meeting of January 20, 2015.

134 Janet Mason From: Sent: To: Subject: Dennis Dixon Tuesday, December 23, :07 PM Janet Mason RE: Superstition Mountain Rotary Club Lost Dutchman Days special event No concerns From: Janet Mason Sent: Tuesday, December 23, :39 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga sfmd.az.gov) Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27 March 1, Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda. Thanks. 1

135 Janet Mason From: Sent: To: Subject: Rudy Esquivias Wednesday, January 07, :44 PM Janet Mason; Dennis Dixon; Jeff Robinson; John Suniga RE: Superstition Mountain Rotary Club Lost Dutchman Days special event Jan: The Planning Division has no objections to this yearly event. Ads Senior Planner/Zoning Administrator City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ SERVICE OVER AND ABOVE THE REST (Development Services Department office hours: Monday through Thursday from 7:00am to 6:00pm, closed Fridays and Holidays.) From: Janet Mason Sent: Tuesday, December 23, :39 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga (john.suniga sfmd.az.gov) Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27 March 1, Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda. Thanks. 1

136 Janet Mason From: Sent: To: Cc: Subject: Jeff Robinson Tuesday, December 30, :45 AM Janet Mason Thomas Kelly; Troy Mullender RE: Superstition Mountain Rotary Club Lost Dutchman Days special event The police department has no objections to the request of special event liquor license for the Rotary Club during Lost Dutchman Days, February 27, 2014-March 1, From: Janet Mason Sent: Tuesday, December 23, :39 AM To: Dennis Dixon; Rudy Esquivias; Jeff Robinson; John Suniga Subject: Superstition Mountain Rotary Club Lost Dutchman Days special event I have received a special event liquor license application from Superstition Mountain Rotary Club for Lost Dutchman Days, February 27 March 1, Please have your department recommendations to me no later than Wednesday, January 7, in order for this to be on the January 20 agenda. Thanks. 1

137 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 10. File ID: Sponsor: Joel Stern Index: Agenda Date: 1/20/2015 In Control: City Council Meeting Discussion on Apache Junction City Code, Vol. I, Chapter 14 Cable Systems Modifications. No action required at this time. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 11. File ID: Sponsor: Bryant Powell Index: Agenda Date: 1/20/2015 In Control: City Council Meeting Consideration of acceptance of the December 16, 2014 CenturyLink Cable TV License applicaiton. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

185 DECEMBER 16, 2014 VERSION LICENSE AGREEMENT FOR A NON-EXCLUSIVE CABLE SYSTEM BETWEEN THE CITY OF APACHE JUNCTION AND QWEST BROADBAND SERVICES, INC., D/B/A CENTURYLINK, INC. THIS AGREEMENT, executed this day of, 2015, by and between the City of Apache Junction, an Arizona municipal corporation (the City ), and Qwest Broadband Services, Inc. d/b/a CenturyLink, Inc., a Delaware Corporation (the Licensee or CenturyLink ), hereinafter individually and collectively referred to as a Party or the Parties. RECITALS A. The City is authorized to grant one or more non-exclusive licenses pursuant to Arizona Revised Statutes ( A.R.S. ) et seq., and the Apache Junction City Code ( A.J.C.C. ) Volume I, Chapter 14, for operating and maintaining cable communications systems within the corporate boundaries of the City. B. CenturyLink has filed an application with the City for a cable license agreement (the Agreement or License Agreement ) and has paid the mandatory $2, application fee and the City Council has accepted the application for full consideration. C. The City has undertaken an extensive review of cable service in the City, including but not limited to a review of the Licensee, its record of service, its facilities, the cable-related community needs of the City for both the present and future, and the Licensee s ability to carry out its commitments, and its overall financial, legal and technical qualifications to hold a City issued cable TV license. D. At the time of the grant of this Agreement, the City has found Licensee to be financially, technically and legally qualified to operate the Cable System. E. Licensee agrees to be bound by all the terms of this license, pursuant to A.J.C.C., Vol. I, Chapter 14, Cable Systems, as amended. F. The City has determined that the grant of a non-exclusive license to Licensee is consistent with the public interest. 1

186 G. Pursuant to A.R.S (B), the City has held a public hearing affording the public the opportunity to comment on this license. H. The City and Licensee have reached agreement on the terms and conditions set forth herein and the Parties have agreed to be bound by those terms and conditions. AGREEMENT 1. DEFINITIONS Except as provided below, all terms used herein have the definitions as set forth herein or in A.J.C.C., Vol. I, Chapter 14, Cable Systems and as set forth in this Agreement: A. Remote Terminal means a Digital Subscriber Line Access Multiplexer ( DSLAM ) capable of offering Cable Services to Subscribers. B. Easement, unless the context otherwise indicates, means those public rights-of-way owned by the City, the terms, conditions or limitations upon which are not inconsistent with the erection, construction or maintenance of a Cable System, its structures or equipment. C. Expanded Basic Service means the next most highly penetrated tier of cable service programming above the Basic Service tier excluding premium or pay-per-view services. D. Installation means the connection of the Cable System from a remote terminal to a subscriber s residence or place of business. E. QC means Qwest Corporation, an affiliate of Qwest Broadband Services, Inc. ( QBSI ) and an indirect wholly-owned subsidiary of CenturyLink, Inc. F. Living Unit means a distinct address in the QC network inventory system where QC currently has, had in the past, or had planned to provide telephone or high-speed internet service to a customer. This includes, but is not limited to, single family homes, multidwelling (e.g., apartment buildings and condominiums) units and business locations. The Parties reserve the right to add additional definitions to this Agreement at any time in the future when both Parties agree additional definitions are needed to clarify the Agreement. Any additional definitions shall be treated in the same manner as any other amendment to the Agreement. 2

187 2. GRANT OF AUTHORITY A. License Granted. The City hereby grants a cable license to Licensee for the privilege to use the public rights-of-way for installing cables, wires, lines and other facilities to operate a cable system. This license grant does not expressly or implicitly authorize the Licensee to provide service to, or install cable, wires, lines or any other equipment or facilities upon property without owner consent (except for compatible easements or rights-of-way pursuant to 47 U.S.C. 541(a)(2)) or to use publicly or privately owned utility poles or conduits without a separate agreement with the owners. This license grant authorizes the Licensee to so use, operate and provide similar facilities or properties rented, licensed or leased from other persons, firms or corporations, including but not limited to, any public utility or other licensee licensed or permitted to do business in the City; provided, however, that neither the Licensee nor the third party shall be relieved of any regulation or obligation as to its use of the facilities in the streets. This License Agreement is not a franchise under Arizona law (A.R.S ). B. Non-Exclusive Grant. Licensee s right to occupy and use streets and public rights-of-way is not exclusive, and may not be sold, transferred or assigned other than as set forth in the Cable Regulations in A.J.C.C., Vol. I, Chapter 14. The City may grant similar licenses for other cable systems and may permit others to use its streets and public rights-of-way for other purposes as it deems fit. Any privilege claimed under this License by the Licensee in any public street or other public property are subordinate to any prior or subsequent lawful occupancy or use thereof by the City or any other governmental entity, are subordinate to any prior lawful occupancy or use thereof by any other person, and are subordinate to any prior Easements therein, provided however, that nothing herein shall extinguish or otherwise interfere with property rights established independently of this Agreement. C. Effect of Competition. The City desires competition in cable services within its corporate limits and believes competition will benefit the residents of the City. Further, the City believes that competition can develop without substantial injury to Licensee or Licensee s ability to perform its promises in this Agreement. Licensee has entered into this Agreement with a full understanding that the City encourages and will facilitate development of competition with licensing terms and conditions no more favorable or less burdensome between cable operators as determined in City s sole discretion. 3

188 D. Term. 1. This License and the rights, privileges and authority granted hereunder shall take effect on March 1, 2015 (the Effective Date ) and shall terminate on March 1, 2020 unless terminated sooner as hereinafter provided. If, at the end of the third year Term after the Effective Date, Grantee offers Cable Services to 20% of the Living Units in the City, the Grantee, at its option, may elect to extend the Term of the License for an additional two (2) years to March 1, If, at the end of the fifth year Term after the Effective Date, Grantee offers Cable Services to 50% of the Living Units in the City, the Grantee, at its option, may elect to extend the Term of the License for an additional three (3) years to March 1, As of September 30, 2014, there were 26,505 Living Units in the City. E. Licensee s Acceptance. Acceptance of this Agreement and all of the terms herein shall be reflected by the execution of this Agreement by Licensee. This Agreement must be accepted by Licensee within thirty (30) calendar days after passage of the ordinance granting this License, provided that all bonds, letters of credit and insurance certificates are also provided to the City by that date. F. Licensee s Acknowledgements. Licensee acknowledges that it has not been induced to enter into this Agreement by any understanding or promise or other statement, whether verbal or written, by or on behalf of the City or by any other third person concerning any term or condition of this Agreement not expressed herein. G. Compliance with Zoning and Construction Codes. Licensee must comply with the terms of all zoning, building and other ordinances, regulations, codes, guidelines and laws controlling the location or construction of its system, including without limitation towers, poles, cables, amplifiers, conduits, Remote Terminals, and all other facilities owned, leased and otherwise used by Licensee for a Cable System. This obligation includes requirements to obtain applicable permits and to pay applicable plan review, permit and inspection fees. H. Application of Apache Junction City Code, Chapter 14. This License is subject to and shall be governed by all terms, conditions and provisions of Chapter 14 of the A.J.C.C., Volume I, currently in effect and as amended, provided, however, that such amendments shall be reasonable and not materially modify the terms of this 4

189 License. Licensee agrees to be in compliance with all of these provisions at all times during the License Term set forth in Section 2(D) above. In the event of a conflict between the terms, conditions and provisions of Chapter 14 of the A.J.C.C., Volume I, and the terms, conditions and provisions of this Agreement refer to Section 12 (N) herein. I. Applicable Law. This License is subject to and governed by all requirements of the Cable Communications Policy Act of 1984, 47 U.S.C. Section 521, et seq., and any amendments thereto; A.R.S through and unless exempted by the terms thereof; and other federal and state laws and regulations and local laws ordinances and regulations governing cable service. In the event of a conflict between the terms and conditions of this License and the terms and conditions on which the City can grant a License, the federal and state law or statutory requirements of both shall control. J. Ownership of Facilities in Rights-of-Way. Licensee promises and guarantees, as a condition of exercising the privileges granted by this License, that any Affiliate of the Licensee directly involved in the offering of Cable Services in the City or directly involved in the management or operation of the Cable System in the City, will also comply with the obligations of this License. However, the Parties acknowledge that QC will pull permits and be primarily responsible for the construction and installation of the facilities in the public right-of-way, which will be utilized by Licensee to provide Cable Services and QC will own, operate and maintain all such facilities. So long as QC does not provide Cable Services to Subscribers in the City, QC will not be subject to terms and conditions contained in this License pertaining to the delivery of Cable Services. QC s installation and maintenance of facilities in the public right-of-way are governed by applicable law. The Parties also acknowledge that if and when QC does provide Cable Services to Subscribers, QC must first obtain a separate license from the City. To the extent Licensee constructs and installs facilities in the public right-of-way, such installation will be subject to the terms and conditions of this License. 3. SYSTEM FACILITIES, EQUIPMENT AND SERVICES A. Guidelines for System Facilities, Equipment, and Services. The following performance guidelines shall serve as the initial minimum guidelines for the design, installation, maintenance and operation of the System: 5

190 1. Compliance with FCC Rules. All designs for, installations on, and maintenance performed on the System by the Licensee must be in accordance with ( FCC ) rules and regulations governing technical performance and operating standards, currently in effect or hereinafter amended. 2. Continuous 24-Hour Operation. The System must be designed and capable of continuous 24-hour daily operation without material degradation of signal except during extremely inclement weather, and immediately following extraordinary storms which adversely affect utility services or which damage major System components. Any general testing of the System which causes any interruption to any subscriber s service must be completed between the hours of 1:00 a.m. and 5:30 a.m. Arizona Time, and Licensee must make reasonable efforts to notify subscribers within thirty (30) calendar days of such testing and possible interruption. 3. Specifications of System. a. General Requirements. Within ninety (90) calendar days after obtaining the necessary permits, licenses and authorizations, Licensee shall commence whatever construction and/or installation is necessary to begin providing cable services to the City and Subscribers. Licensee is under no obligation to activate a Remote Terminal, but Licensee may not, without permission of the City deactivate a Remote Terminal. b. General Description. The System is intended to provide cable services to Licensee s customers. c. Underground Facilities. Licensee s new cable, wires, and other equipment must be placed underground unless technologically impossible for such equipment to function properly. If the City in the future so requires, for all or any portion of the City, that all the utilities in such area place their lines underground, then Licensee shall in a reasonable period of time set by the City place its existing cable, wires, or other equipment in such area underground without charge, expense or liability therefore to the City. d. Technical Specifications. The System must at a minimum meet FCC requirements as set forth in 47 C.F.R. 76, et seq. If federal laws or regulations are 6

191 subsequently amended, or minimum technical specifications are no longer mandated by the FCC, the FCC s technical specifications in effect at the time of adoption of the Agreement shall govern and remain enforceable under this Agreement unless specifically preempted by state or federal law. e. Picture and Sound Quality. The System must be capable of relaying without distortion to every Subscriber: (1) All picture and picture information, including, but not limited to color, teletext, closed-captioning information and other information displayed on a Subscriber s normally operating television screen; and (2) All sound and sound elements, including but not limited to stereo, second audio channel and all subcarriers and or otherwise modulated information reproduced by a Subscriber s normally operating television audio system. 4. FCC Technical Standards. Should the FCC promulgate amended technical standards which exceed these performance guidelines set forth within this Agreement, Licensee must operate its System so that it is capable of operating according to such FCC standards. 5. Blue Stake Center. Licensee must, if not already a member, become a member of the Blue Stake Center, or its equivalent, within thirty (30) calendar days following the Effective Date. 6. Stand-by Power. Licensee must provide stand-by power generating capacity at the headend and at all nodes. Licensee must maintain motorized or battery stand-by generators capable of at least forty-eight (48) hours duration at the headend, and battery back-up power capability of at least forty-eight (48) hours duration for all System nodes with automatic dialer response systems to alert the System headend when commercial power is interrupted. The Licensee must test the headend generator and provide all test results to City when the City deems such tests appropriate to ensure the system can be operated during a local commercial power outage. 7

192 7. Service for the Disabled. For hearing impaired Subscribers, Licensee must provide information concerning the cost and availability of equipment to facilitate the reception of the closed caption signal. In addition, the Licensee must have functional Telecommunication Device for the Deaf/Teletype ( TDD/TYY ) (or equivalent) equipment at its call center and use such TDD/TYY equipment as required to communicate with the public using such equipment to communicate with Licensee. 8. Periodic Evaluation. The field of cable communications is rapidly changing and may see many regulatory, technical, financial, marketing and legal changes during the term of this Agreement. Therefore, in order to provide for a maximum degree of flexibility in this Agreement, and to help achieve a continued advanced and modern System, the following apply: a. City may require evaluation sessions at any time during the Term of this Agreement, upon sixty (60) calendar days written notice to Licensee. b. Topics which may be discussed at any evaluation session may include, but are not limited to, application of new technologies, System performance, programming offered, access channels, facilities and support, municipal uses of cable, customer complaints, amendments to this License, judicial rulings, FCC rulings and any other topics City and Licensee deem relevant. c. As a result of a periodic review or evaluation session, City and Licensee shall meet and may develop such changes and modifications to the terms and conditions of this Agreement, as are mutually agreed upon and which are both economically and technically feasible. 9. Technical Changes and Modification Costs. Licensee agrees that it must not apply or seek to apply or make any claim that all or any part of the technical changes and modifications costs set forth in this Section 3(A)(9) are Licensee Fee Payments under 47 U.S.C. 542 and/or applicable state law nor are the technical changes and modifications costs to be considered other payments or contributions to be made by Licensee to the City pursuant to this Agreement. Licensee must not deduct any technical changes and modifications 8

193 costs from, or offset such expenses against, any taxes, fees or assessments levied or imposed by the City on Licensee. 10. Acknowledgement and Waiver of Claims. Licensee acknowledges that it has had an opportunity to review the terms and conditions of this Agreement and that under current law Licensee believes that said terms and conditions are not unreasonable, arbitrary, and that Licensee has voluntarily entered into this Agreement and that Licensee believes City has the power to require the terms and conditions contained in this Agreement. Licensee agrees that it will not, at any time, set up against City in any claim or proceeding, any condition or term of the this Agreement as unreasonable, arbitrary, void as of the Effective Date of this Agreement or that City had no power or authority to require such term or condition. 11. Design. Licensee s video network shall be fully integrated with its telephone network and shall use an Ethernet-based, switched digital video service (not a QAM-based broadcast system). The Cable System shall have a fully activated capability to provide broadcast quality of equal quality to those provided over a traditional 750 MHz or higher hybrid fiber coaxial cable system. Licensee shall make available high definition ( HD ) capability to all Subscribers. 12. Digital Capability. The Licensee must design the System so that channel capacity may be readily expanded and digital programming delivered to Subscribers through digital video compression or similar appropriate technology without compromising signal or service quality or requiring alterations, upgrading or reconstruction. 13. System and Institutional Network Build Schedule. a. Licensee must install and thereafter maintain the functionality and access of the System and is responsible for all malfunctions of such System, including without limitation the repairing of damaged cables, conduit facilities, and any other portion of the System at Licensee s cost, regardless of how such damage occurred, unless it was caused by the negligence of City, in which case Licensee is still responsible for repair but may seek reimbursement of actual costs (without markup) from City. 9

194 b. Failure to commence and diligently pursue the above requirements in this subsection and to complete each of the matters set forth above, shall be grounds for liquidated damages or termination of the License. c. The City Council, in its discretion, may extend the time for the commencement and completion of construction and installation for additional periods if the Licensee acting in good faith experiences delays by reason of circumstances beyond its control. Such extension shall be considered in a public hearing with both Parties executing a written extension agreement after a vote of the Mayor and City Council. 14. System Acceptance Schedule. The procedure set for acceptance of the system for purposes of Term renewal is set forth in section 2(D). 15. Emergency Alert System and Audio Emergency Override. Licensee must install and thereafter maintain for use by the City, an Emergency Alert System ( EAS ), as required by FCC rules and regulations currently in effect and hereinafter amended. As a component of the EAS required by FCC rules, if and when it is technically feasible for local government to have EAS override capability, the Licensee must also provide a secure audio emergency override system to permit City Officials to interrupt the audio portion of all channels for the purpose of transmitting public safety, health, and welfare messages to all Subscribers. In the event that both systems are simultaneously activated, the Emergency Alert System shall take priority over the Audio Emergency Override System. 16. Public Service Drops. a. Public Buildings. Licensee must provide, free of charge and not subject to offset against the License Fee, throughout the term of this Agreement, one (1) service drop, two (2) outlets and two (2) converter units if necessary, and Basic Service and Expanded Basic Service (i.e. together the equivalent of sixty (60) or more Channels of programming) or the future analog or digital equivalent of such service tiers offered by Licensee in the City ( Complimentary Service ) to all to all governmental or educational buildings in the City and such other public institutions subsequently 10

195 designated by the City as determined in the City s sole discretion including but not limited to: City Hall, the Multi-generational Center, the Library, the Public Works Department, Animal Control Division, the Police Department, and the Parks and Recreation Department Buildings (former City Attorney, City Court, and current Parks and Recreation Administration office buildings) ( Public Buildings ) provided however, that such Public Buildings are within four thousand (4,000) cable feet of an activated Remote Terminal. Subject to the City providing all required Easements to Licensee if not already granted, all standard drops must be completed within thirty (30) calendar days of the request of such service drop. b. Designated Representative. For purposes of this Section, the term Designated Representative shall include anyone designated by the local governing body responsible for the Public Building in question. The Designated Representative may request complimentary service to Public Buildings which shall be made in writing. Licensee is solely responsible for all costs of extension for any installation which is less than 4,000 copper loop-feet Licensee s activated Remote Terminal. c. The City acknowledges and agrees that Licensee shall have no obligation to provide complimentary service to any private person or entity which is occupying space in a Public Building. 17. Residential and Commercial Service Drops. Licensee must make Cable Service available to any residential dwelling unit or any commercial establishment within the City at the standard connection charge if the connection requires a Standard Drop. Such service must also be completed within seven (7) calendar days from such date of request, subject to Licensee s diligent efforts to obtain any required Easements or permits and for payment for any additional facilities. 18. Interconnection. Licensee must design the System so that it may be interconnected with all of the other cable systems or similar communications systems in the City. Interconnection of systems may be made by any appropriate methods that ensure no material degradation of signal or service occurs between the connected systems. 11

196 19. Provision of Cable Service in General. Licensee must make cable service available to each residential dwelling unit in the City located within four thousand (4,000) cable feet of a Remote Terminal. 20. Annual Meeting. At a minimum, each year this License is in effect, Licensee must meet with the City in the first quarter of the calendar year and provide a detailed report to the City the Licensee s construction schedule for the next year, including mapping. Additional meetings may be coordinated by either Party throughout the year, if necessary. 21. Seasonal Service. For Subscribers desiring only seasonal service, Licensee shall either offer seasonal service at a reduction from its standard rates or shall offer a reduced prescheduled seasonal installation and disconnection charge. 4. OPERATION AND MAINTENANCE PROVISONS A. Customer Service Standards. Licensee must furnish, render and sell Cable Service to its subscribers in a manner which, at a minimum, conforms to the FCC Customer Service Standards pursuant to 47 C.F.R and 47 C.F.R , as amended from time to time and so long as those standards exist. Notwithstanding Licensee s obligation to comply with the above FCC Customer Service Standards, Licensee must at all times comply with the following specific standards: 1. System Office Hours and Telephone Availability. a. Licensee must establish and maintain at least one (1) publicly listed local telephone number or toll-free telephone number which is available to cable Subscribers and the public twenty-four (24) hours a day, seven (7) days a week. (i) (ii) Trained representatives of Licensee must be available to respond to Subscriber telephone inquiries during normal business hours. After normal business hours, an access line will be available to be answered by a service or an automated response system, including a phone answering system. Inquiries received after 12

197 normal business hours must be responded to by a trained representative of Licensee on the next business date. (iii) Telephone equipment must be made available to permit persons with hearing impairments to communicate with the Licensee. b. Under normal operating conditions, where normal operating conditions has the same meaning as in the FCC Customer Service Standards, each of the following four (4) standards must met not less than ninety percent (90%) of the time, as measured by Licensee on a quarterly basis: (i) Telephone answer time by a customer representative, including waiting time, will not exceed thirty (30) seconds from when the connection is made. (ii) (iii) (iv) If the call needs to be transferred, transfer time will not exceed thirty (30) seconds. Subscribers will receive a busy signal less than five percent (5%) of the time. No more than five percent (5%) of Licensee s calls from subscribers, measured monthly for the prior three (3) months, shall be abandoned, meaning a caller hangs up while on hold for a customer representative. c. Licensee must maintain at least one (1) physical office located no more than fifteen miles distance from Meridian Drive, Apache Junction, Arizona The physical office(s) must be a place(s) conveniently located where subscribers may pay their bills, register complaints and have them resolved, schedule installations and service calls, process new service requests, obtain assistance on technical problems, obtain and return converter boxes or other equipment, remotes and other customer premises equipment, and receive information on Licensee and its services. Such office must be open at least those hours during which similar businesses in the service area are open to serve customers, Monday through Friday, and must include evening and weekend 13

198 hours to meet the needs of residents of the City. In addition, Licensee must make available a direct contact telephone number of local personnel available to City staff in order to facilitate timely responses for questions and concerns of cable television customers who have contacted the City directly. Licensee agrees that it shall not apply or seek to apply or make any claim that all or any part of costs associated with the requirements of this Section 4(A)(1) ( Local Office Costs ) are Licensee Fee Payments under 47 U.S.C. 542 and/or applicable state law nor are the Local Office Costs to be considered other payments or contributions to be made by Licensee to the City pursuant to this Agreement. Licensee must not deduct any Local Office Costs from, or offset such Local Office Costs against, any taxes, fees or assessments levied or imposed by the City on Licensee. d. It is customary for Licensee to pick up and deliver equipment directly to subscribers. However, in addition to the physical office requirement noted above Licensee shall provide five (5) locations conveniently located within the City limits for, paying bills, ordering service, and other cable TV administrative services. 2. Installations, Outages and Service Calls. a. Under normal operating conditions, each of the following standards will be met no less than ninety-five percent (95%) of the time, as measured by Licensee on a quarterly basis: (i) Standard installations will be performed within seven (7) business days after an order has been placed. Standard installations are those that are located within four thousand (4,000) cable feet of a Remote Terminal. (ii) Excluding conditions beyond its control, Licensee will begin working on service interruptions, as defined herein, promptly and in no event later than twenty-four (24) hours after the interruption becomes known to Licensee. Licensee will begin actions to correct other service problems within twenty-four (24) hours after notification of the service problem. 14

199 b. Licensee must not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment. The appointment may be rescheduled as is necessary, but must not be canceled unless by subscriber request. c. As soon as Licensee is or should be aware that Licensee is behind schedule for an appointment with a subscriber and will not be able to keep the appointment as scheduled, the Licensee must contact the subscriber by telephone unless the subscriber does not have a telephone number or refuses to provide such telephone number to Licensee. The appointment will be rescheduled, as necessary, at a time which is convenient for the subscriber. d. Service calls must be performed during a four (4) hour window that has been communicated to the subscriber at least five (5) calendar days in advance of such service call, unless otherwise requested by a subscriber. The convenience of Subscribers shall always be the primary accommodation goal of Licensee. 3. Communications Between Licensee and Subscribers. a. Notifications to subscribers: (i) Licensee must provide written information on each of the following areas at the time of installation of Cable Service, at least annually to all Subscribers, and at any time upon the request of a Subscriber: (a) Products and Cable Service offered; (b) Prices and options for Cable Service and conditions of subscription; (c) Installation and service maintenance policies; (d) Instructions on how to use the Cable Service; (e) Channel positions of programming carried on the System; 15

200 (f) Billing and complaint procedures, including the address and telephone number of the cable office. Subscribers will be notified of any changes in rates, programming services or channel positions as soon as practicable through announcements on the System and in writing. Licensee must notify Subscribers and the City a minimum of thirty (30) calendar days in advance of such changes if the changes are within the control of Licensee. In addition, Licensee must notify Subscribers thirty (30) calendar days in advance of any significant changes and any other information required by the preceding paragraph. (ii) Billing: a) Bills will be clear, concise and understandable. Bills will be fully itemized, with itemizations including, but not limited to, basic service, premium service, and equipment charges. Bills will also clearly delineate all activity during the billing period, including optional charges, rebates and credits. b) In case of a billing dispute, Licensee will respond to a written complaint from a Subscriber within thirty (30) calendar days from receipt of the complaint. c) Refund checks will be issued promptly, but no later than either: (i) the Subscriber s next billing cycle following resolution of the request or thirty (30) calendar days, whichever is earlier, or (ii) the return of the equipment supplied by Licensee if Cable Service is terminated. If for any reason any Subscriber terminates any monthly service prior to the end of a prepaid period, a prorated portion of any prepaid Subscriber service fee, using the number of days within the billing period as a basis, must be credited to the Subscriber s account by Licensee. 16

201 B. Maintenance and Complaints. d) Credits for service will be issued no later than the Subscriber s next billing cycle following the determination that a credit is warranted. e) Residential billing statements must include the local address and local phone number of the local Licensee office. 1. Repair Force. Licensee must maintain a sufficient repair force of technicians that must respond to Subscriber complaints, loss of service or requests for repair. 2. Resolution of Complaints. Licensee must use its best efforts to resolve complaints as soon as practicable after the date complaints are received. 3. Prorated Billing Credit for Service Interruption. Upon a Subscriber s notification to Licensee of a Service Interruption, that Subscriber s account must be credited a prorated share of the monthly charge for the service if the Subscriber is without service for any reason, except Subscriber-inflicted damages to Licensee s equipment, for a period exceeding twenty-four (24) hours. 4. Complaints Received by the City. All Subscribers and residents may direct complaints and inquiries regarding Licensee s service or performance to the City. The City will promptly submit those complaints and inquiries to Licensee on a form upon which both parties agree. 5. Relocation of the System. Licensee must, at its expense, protect, support, disconnect, relocate, or remove any of its property when required by the City Manager (or designee) by reason of traffic conditions, public safety or welfare; street vacation; freeway or street construction or repair; change or establishment of street grade; installation of sewers, drains, water pipes, power lines, signal lines, transportation facilities, tracks, or any other types of structure or improvements by public agencies. The City may disconnect, remove or relocate any of Licensee s facilities, which have not been disconnected, removed or relocated within a reasonable period of time after a request from the City and Licensee must reimburse the City for its actual costs in 17

202 disconnecting, removing, or relocating Licensee s facilities. Neither the City nor any agent, contractor or employee thereof shall be liable to Licensee, its customers or third parties for any damages caused them or the System due to any activities described in the preceding two sentences, except in the case of willful misconduct or gross negligence. The City shall use reasonable efforts to treat all occupants of public rights-of-way in a non-discriminatory manner with respect to activities and obligations described herein, taking into account its reasonable ability to act given the differing regulatory regimes for, laws applicable to and claimed rights of different providers. 6. Discontinuance, Abandonment, and Removal of the System. Upon the revocation; termination, or expiration of this License, by (a) mutual agreement of the City and Licensee, (b) Licensee s acquiescence or failure to challenge same, or (c) a final order of a court which Licensee either does not appeal or from which there is no further right of appeal, then the following must occur: Licensee shall immediately discontinue the provision of Cable Services and all rights of Licensee to use the Streets shall cease. Licensee, at the direction of the City, must remove its System, including all supporting structures, transmission and distribution portions of the System that is owned by Licensee, and other appurtenances, fixtures or property from the Streets, in, over, under, along, or through which they are installed within six (6) months of the revocation, termination, or expiration of this License except that (a) Licensee may abandon its facilities in place with the City s consent, and (b) Licensee must not remove underground facilities without the City s consent in advance, which shall not be unreasonably withheld or delayed. Prior to any removal, Licensee must notify the City and persons owning property abutting streets where removal will occur. Licensee must also restore all property it disturbs, public or private, to the condition in which the property existed prior to the installation, erection, removal, or construction of the System, including any improvements made to such property subsequent to the construction of its System. Restoration of streets and City property must be in accordance with the directions and specifications of the City, and all applicable laws, ordinances and regulations, at Licensee s sole expense. If such removal and restoration is not completed within six (6) months after the later of (i) revocation, termination, or expiration of the License and (ii) 18

203 the receipt of any necessary consents from the City or any other parties, all of Licensee s property remaining in the affected streets must, at the option of the City, be deemed abandoned and shall, at the option of the City, become its property or the City may obtain a court order compelling Licensee to remove same. In the event Licensee fails or refuses to remove its System or to satisfactorily restore all areas to the condition in which they existed prior to the original construction of the System, the City, at its option, may perform such work and if such work is performed within one (1) year of the revocation, termination or expiration of this License collect the costs thereof from Licensee. No letter of credit must be released (during this one year period) until the City has certified to Licensee in writing that the System has been dismantled, removed, and all other property restored, to the satisfaction of the City. C. Discrimination. Licensee agrees that it will not discriminate among Subscribers and the public with regard to rates and charges or the provision of any service based on considerations of race, color, creed, sex, marital or economic status, national origin, political party, mental or physical disability or neighborhood of residence; and must comply with all non-discrimination requirements of applicable federal, state and local laws. 5. RESIDENT, PROPERTY OWNER, OR TENANT REQUEST FOR ASSISTANCE PROCEDURE A. Request for Assistance means a written request for assistance delivered by the City via fax or to Licensee resulting from a concern received by the City from a resident, property owner, or tenant related to the construction, installation, operation or maintenance of Licensee s System. B. Upon receipt of a Request for Assistance from the City, Licensee must take action as described below: 1. Licensee must make every reasonable attempt to contact the resident, property owner, or tenant cited in the Request for Assistance in an attempt to resolve the issue causing the resident, property owner, or tenant s concern, the same day it is received. In no case shall the attempt occur later than the next business day. 19

204 2. Licensee must respond to the City, via fax, or within two (2) business days indicating when and what action(s) Licensee took in response to the Request for Assistance. 3. Licensee must maintain an accurate and complete log of the information contained and resulting from each Request for Assistance: the identity of the resident, property owner, or tenant and his/her concern, street address and telephone number, and when and what action(s) Licensee took in response thereto. The City may examine the log upon request. 4. Licensee must provide, in writing, upon request of the City, a detailed description of actions taken in response to a Request for Assistance. 5. Licensee must provide each Subscriber annually with a written statement describing in full the process for submitting a service request or Subscriber complaint. 6. PUBLIC, EDUCATIONAL AND GOVERNMENTAL ( PEG ) CHANNELS A. Required Access Channels. Within one hundred eighty (180) days after Licensee begins offering Cable Service in the City, Licensee will provide the City with up to two (2) public, educational, and governmental access channels ( PEG Channels ) as determined in the City s sole discretion. The two PEG Channels shall be on the Basic Cable Service Tier of the System and two other channels of non-commercial government programming, at least one of which may be programmed by the federal government in the digital programming tier of the system, as provided for in A.R.S (D)(1). Channel 11 and 99 shall be reserved for this capacity with a logo approved by the City. All costs associated with the obligations in this Section to commence PEG signals at the point of origination back to the headend and transmitted to subscribers with the same quality, functionality and identification as other channels on the system, shall be borne by Licensee. Except as provided in this Section, Licensee shall have no responsibility for the management, operation or administration of PEG Channels and shall have no editorial control pursuant to A.R.S (D)(1). B. Quality and Subscription Fees. PEG Channels located on the Basic Cable Service Tier shall be grouped together and located on the System in reasonable proximity to other commercial video channels on the System. Licensee will deliver the PEG Channels to Subscribers at the same visual and audio quality, same functionality 20

205 and at the same bit rate as Licensee delivers the primary signal of local television network broadcast stations on its Cable System ( Network TV ), such that the PEG channels are indistinguishable from Network TV in video and audio quality and functionality. Should Licensee convert the Basic Cable Service Tier to digital format, Subscribers must be able to continue to receive PEG Channels free of charge except for the standard rate applicable for the Basic Cable Service Tier. PEG Channels must be receivable by Subscribers without special expense, other than the expense required to receive Basic Cable Service or digital service, as applicable. Licensee must maintain PEG channels consistent with FCC technical standards. If no FCC standards for PEG Channels exist, Licensee must maintain PEG channels using FCC technical standards for local over-the-air television channels The City recognizes that Licensee is unable to improve the technical quality of PEG Channels but Licensee must not degrade the technical quality once it is received by Licensee. Licensee agrees not to encrypt PEG channels any differently than other commercial channels available on the System unless the City and Licensee mutually agree in writing to a non-traditional format that is not similar to those of broadcast channels. C. High Definition Transition of PEG Programming. Upon 180 day advance written notice to Licensee the City shall have the right to require that Licensee carry one (1) of the PEG Channels in both SD and HD format consistent with the manner and tier placement in which Licensee delivers the primary signal of Network TV. City shall have the sole discretion to determine which of its PEG Channels migrate to HD without the addition of mandates or content restrictions. HD resolution will be the same resolution used in Licensee s HD tier, such that the PEG HD channels are indistinguishable from Network TV in video and audio quality and functionality. Licensee will continue to carry the City PEG channels in SD format in addition to HD format as long as there are SD channels in Licensee s basic channel lineup. D. Obligations of Licensee. Licensee must permit the City to operate a production studio (the Studio ) located in City Hall as identified as above in Section 3, subsection 16, at a site determined by the City Licensee, at its sole cost, will design build and maintain all PEG upstream feeds, connections and distribution facilities between its video channel aggregation point and the Studio in a manner so that no degradation in signal quality or content as originated by City shall occur. Licensee must furnish a new state-of-the-art digital fiber optic transmission system consisting of transmitters and receivers. Transmitters and receivers must be of the type 21

206 7. LICENSE FEE consistent and compatible with current industry standards for the application of continuous conversion of broadcast quality audio and video to date for transport over fiber optic cable. Licensee must interconnect at its sole cost the Studio to the headend or other main distribution point of the System for distribution of the programming of the PEG Channels with the above-mentioned fiber optic cable to a point designated by the City. At the request of the City, Licensee at Licensee s cost shall provide timely and reliable advice regarding acquisition, maintenance and use of any Studio and production equipment that may be obtained for that purpose by the City. A. Payment to the City. 1. Use of Streets/Cost of Regulation. In consideration of the rights, powers and privileges, permission and authority granted by this Agreement, for use of the City s streets and other public rights-of-way, Licensee must pay to the City an amount equal to five percent (5%) of its Gross Revenues as defined in A.R.S (6) as amended from time to time, received from the operation of the System in the City ( License Fee ). 2. Payment of Fee. Payment of the License Fee shall be in lieu of all occupational, encroachment permits, pole attachment or other license fees or charges imposed by the City, other than generally applicable business license fees and any fees or charges imposed by the City as a condition of issuing construction permits. 3. Revenue Not From Operation of Cable System. This Agreement does not excuse the payment of any occupational license fee, charge or tax relating to any business endeavor for which Licensee is not obligated to pay a Licensee fee, subject to applicable federal and state law. 4. Taxes of General Applicability. This Agreement does not prohibit the City from imposing on Licensee, as part of a group of businesses or activities, any tax, fee or assessment of general applicability that is not unduly discriminatory against operators of cable systems or their subscribers, subject to 47 U.S.C Quarterly Payments. License fee payments must be delivered to the City within forty-five (45) calendar days after the 22

207 expiration of each quarter year ending December 31, March 31, June 30, and September 30. Each payment must be accompanied by a detailed statement of Gross Revenues by category received for the quarter in connection with the operation of the System in the City, and a report showing the computation of the fees. Each such detailed statement shall be signed by an authorized corporate officer of Licensee attesting to the accuracy of the detailed statement. 6. Acceptance of Payment Not Accord or Release. No acceptance of any payment shall be construed as an accord that the amount paid is in fact the correct amount, nor shall acceptance of payment be construed as a release of any claim the City may have for further or additional sums payable under the provisions of this Agreement. All amounts paid by Licensee shall be subject to audit by the City, at the City s expense. 7. Late Payment. All amounts paid by Licensee shall be subject to audit by the City, at the City s expense. Any Access Support fees owing pursuant to this Agreement which remain unpaid more than thirty (30) calendar days after the dates specified herein shall be delinquent and shall thereafter accrue interest at the maximum allowable rate under state law. Interest shall begin to accrue immediately whether the City provides notice of nonpayment or not. 8. Early Termination of Agreement. In the event the Agreement is terminated for any reason before its normal termination date, the License fee shall be prorated to reflect the time elapsed since the last payment was made to the City. Licensee must pay to the City not later than thirty (30) calendar days following termination of the license the required percentage of Gross Revenues. B. Annual Financial Report. Licensee must deliver an annual report to the City Manager no later than ninety (90) calendar days after the close of Licensee s fiscal year which must include full audited financial statements for the previous year, including income statement, balance sheet, cash flow statement and appropriate explanatory footnotes, for Licensee or for its parent company. Parent company means CenturyLink Inc., which owns one hundred percent (100%) of Licensee. Financial statements must be audited by an independent certified public accountant. If the parent company is a public company and the audited financial report of the parent company has not been published by the date 23

208 due under this Section, then the audited financial report shall be deemed submitted on time if delivered to City within thirty (30) calendar days after publication. C. Annual Local Operations Report. Licensee must deliver an annual local operations report to the City Manager no later than ninety (90) calendar days after the close of the Licensee s fiscal year which shall be deemed submitted on time if delivered to City within thirty (30) calendar days after publication of the corresponding audited report in Section 7(B) above. Said report shall be specific to the City and to Licensee s operation of its System in the City, separate and apart from any corporate annual report compiled and provided by Licensee or its parent company, shall be certified as being correct by an authorized corporate officer of the Licensee, and shall include at a minimum: 1. A statement of revenues for the previous calendar or fiscal year, including Total Gross Revenues. 2. A summary of the previous year s activities including, but not limited to: services begun and/or dropped, Subscribers gained and/or lost and year-end totals, service area at beginning and end of year (map and text), revenues collected, License Fees paid to the City, plant miles constructed, plant miles activated, changes in local management and staff, rate structure and changes during the year, new services offered, programming changes, changes in service policies and/or procedures, and System technical changes. 3. At the times and in the form prescribed, such additional reports with respect to Licensee s operation, affairs, transactions, or property as may be reasonably necessary and appropriate for the evaluation of Licensee s performance under the License. D. Audit. The City, either by itself or in combination with other municipalities served by Licensee, may arrange for and conduct audits of the necessary financial records of Licensee for the purpose of verifying License fees. Audits may be conducted by any person designated by the City. The City shall notify Licensee at least seven (7) calendar days prior to the date it will begin reviewing Licensee s records. All records reasonably necessary for such audit must be made available by Licensee at a location in the City limits. Any additional amount due the City must be paid within thirty (30) days of the City s submitting an invoice for such sum, and if such sum shall exceed three percent (3%) of the total 24

209 License Fee which the audit determines should have been paid for any calendar year, Licensee must pay the City s cost of auditing that calendar year as well. Notwithstanding the above, if Licensee or Licensee s auditor disagrees with the City s determination that the additional amount due exceeds three percent (3%), the City s auditor and Licensee s auditor shall choose a neutral auditor who shall make a determination, which is final and binding on both parties as to whether the three percent (3%) amount was exceeded. The cost of the neutral auditor shall be borne equally by the Parties. E. Access to Records. In addition to access to the records of Licensee for financial audits, Licensee must make available to the City, upon seven (7) calendar days written notice to Licensee, and the City shall have the right to inspect, such books, records, maps and other materials of Licensee that are necessary to verify compliance with the terms of this Agreement, at Licensee s closest office where such records are normally maintained, during normal business hours and on a non-disruptive basis. The records subject to inspection must include, but not necessarily be limited to, all public records required to be kept by Licensee in a public file pursuant to the rules and regulations of the FCC. The location of the records to be inspected shall be no farther than 50 air miles from City Hall in Apache Junction, Arizona. 8. RATE REGULATION A. All Rights Reserved. The City reserves all of its rights to regulate the Licensee s rates to the maximum extent permitted by law. 9. INDEMNIFICATION, LIABILITY INSURANCE, AND BONDS AND LETTERS OF CREDIT A. Disclaimer of Liability. The City shall not at any time be required to pay from its own funds for injury or damage occurring to any person or property from any cause whatsoever arising out of Licensee s construction, reconstruction, maintenance, repair, use, operation, condition or dismantling of the System or Licensee s provision of Cable Services. B. Indemnification. To the fullest extent permitted by law, Licensee must, at its sole cost and expense, indemnify, defend and hold harmless the City and all associated, affiliated, allied and subsidiary entities of the City, now existing or hereinafter created, and it s Mayor and City Council, officers, appointees, boards, commissions, 25

210 employees, agents, attorneys, contractors, and volunteers (hereinafter referred to as lndemnitees ) from and against: 1. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of: any act or omission of Licensee, its personnel, employees, agents, contractors or subcontractors, resulting in economic harm, personal injury; bodily injury, sickness, disease or death to any person or damage to, loss of or destruction of tangible or intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark, trade name, copyright, patent, service mark or any other right of any person, firm or corporation; and any challenge to this agreement based on unequal competition which may arise out of or be in any way connected with Licensee s construction, reconstruction, installation, operation, maintenance or condition of the System and any other facilities authorized by or permitted due to the issuance of this License, including those arising from any matter contained in or resulting from the transmission of programming over the System, but excluding any programming provided by Indemnitees which is transmitted over the System; the provision of Cable Services or other services authorized by or permitted due to the issuance of this Agreement; the release of Hazardous Substances, or; the failure to comply with any Federal, state or local statute, ordinance or regulation. 2. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and other consultants), which are imposed upon, incurred by or asserted against the Indemnitees by reason of any claim or lien arising out of work, labor, materials or supplies provided or supplied to Licensee, its contractors or subcontractors, for the installation, construction, reconstruction, operation or maintenance of the System and any other facilities authorized by or permitted due to the issuance of this License or the provision of Cable Services or other services authorized by or permitted due to the issuance of this Agreement. 26

211 3. Any and all liabilities, obligations, damages, penalties, claims, liens, costs, charges, losses and expenses (including, without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants), which may be imposed upon, incurred by or be asserted against the Indemnitees by reason of any financing or securities offering by Licensee or its Affiliates for violations of the common law or any laws, statutes, or regulations of the State of Arizona or the United States, including those of the Federal Securities and Exchange Commission, whether by Licensee or otherwise. 4. Licensee s obligation to indemnify Indemnitees under this License must extend to claims, losses, and other matters covered in this Agreement that are caused or contributed to by the negligence of one or more Indemnitees. However, in such case, the obligation to indemnify shall be reduced in proportion to the negligence of the Indemnitees. C. Assumption of Risk. Licensee undertakes and assumes for its officers, agents, contractors and subcontractors and employees (collectively Licensee for the purpose of this Section), all risk of dangerous conditions, if any, on or about any City-owned or controlled property or public rights-of-way, and Licensee hereby agrees to indemnify and hold harmless the Indemnitees against and from any claim asserted or liability imposed upon the Indemnitees for personal injury or property damage to any person, other than from Indemnitees gross negligence, arising out of Licensee s installation, operation, maintenance or condition of the System or other facilities or Licensee s failure to comply with any Federal, state or local statute, ordinance, or regulation. D. Defense of lndemnitees. In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, Licensee shall, upon notice from any of the Indemnitees, at Licensee s sole cost and expense, resist and defend the same with legal counsel selected by Licensee and consented to by the City, such consent not to be unreasonably withheld; provided, however, that Licensee shall not admit liability in any such matter on behalf of the lndemnitees without their written consent and provided further that Indemnitees shall not admit liability for, nor enter into any compromise or settlement of, any claim for which they are indemnified hereunder, without the prior written consent of Licensee. 27

212 E. Notice, Cooperation and Expenses. The Indemnitees shall give Licensee prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section. Nothing herein shall be deemed to prevent the Indemnitees at their own expense from cooperating with Licensee and participating in the defense of any litigation by their own counsel. F. Insurance. During the Term of the License and any extensions thereto, Licensee must maintain, or cause to be maintained, in full force and effect and at its sole cost and expense, the following types and limits of insurance: 1. Worker s compensation insurance meeting Arizona statutory requirements and employer s liability insurance with minimum limits of Two Million Dollars ($2,000,000) for each accident. 2. Comprehensive commercial general liability insurance with minimum limits of Ten Million Dollars ($10,000,000) or less as may be determined in the sole discretion of the City as the combined single limit for each occurrence of bodily injury, personal injury and property damage. The policy shall include coverage for: products and completed operations liability; independent contractor s liability; and coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as explosion, collapse and underground ( XCU ) coverage. 3. Broadcaster s liability coverage for loss or damage arising out of publications or utterances in the course of or related to advertising, broadcasting, telecasting or other communication activities conducted by or on behalf of Licensee with minimum limits of Ten Million Dollars ($10,000,000) or less as may be determined in the sole discretion of the City as the combined single limit for each occurrence. 4. Automobile liability insurance covering all owned, hired, and non-owned vehicles in use by Licensee, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of the Arizona No-Fault Insurance Law, with minimum limits of Two Million Dollars ($2,000,000) as the combined single limit for each occurrence for bodily injury and property damage. 28

213 5. The policies required by this Agreement shall contain a waiver of transfer rights of recovery (subrogation) against City, its Mayor and City Council, agents, appointees, representatives, directors, officials, officers, employees, and volunteers for any claims arising out of the work of any of Licensee s contractors or subcontractors. 6. All insurance policies other than those for worker s compensation and pollution legal liability insurance shall be written on an occurrence and not on claims made basis. 7. The coverage amounts set forth above may be met by a combination of underlying primary and umbrella policies so long as in combination the limits equal or exceed those stated. 8. All policies of insurance shall contain a waiver of subrogation clause consistent, however, with Section 9(B)(3) above. 9. All insurance policies shall be written with a zero dollar deductible (no deductible). 10. As between the City and/or Additional Insureds on the one hand, and Licensee on the other hand, if more than one policy of insurance does or may apply to a given claim or matter, then the policy maintained by Licensee pursuant to this License shall be deemed the primary policy, and that policy shall contain a provision that states that it is the primary policy as opposed to any other policy of insurance that may apply to the City and/or Additional Insureds on any given claim or matter. The term policy of insurance as applied to the City/Additional Insureds shall include any self-insurance program, self-insured retention or deductible or risk pooling program, or an indemnification, defense or other similar program purchased or maintained by the City/Additional Insureds. 11. All coverages specified in this Section F shall automatically increase by ten percent (10%) on every fifth (5 th ) anniversary date of this Agreement. G. Performance Bond. Licensee agrees to the construction requirements set forth in this Agreement, and shall comply with Chapter 14 of the A.J.C.C. regarding insurance, bonds, and letters of credit by obtaining a corporate performance bond and an irrevocable letter of credit solely for the purpose of guaranteeing 29

214 the construction of the System and safeguarding the private property during construction. Licensee shall maintain a performance bond in the amount of One Hundred Thousand Dollars ($100,000), and an irrevocable letter of credit in the amount of Twenty Five Thousand Dollars ($25,000), both being provided to the City Attorney within thirty (30) calendar days after execution of this Agreement and prior to any construction work in the public rightsof-way. Where any portion of any required bond is drawn down by the City, Licensee shall immediately cause the full amount of the drawn down bond to be reinstated to the stated amount herein. 10. LIQUIDATED DAMAGES A. Licensee understands and agrees that failure to comply with any time and performance requirements in this License or Chapter 14 of the A.J.C.C., will result in damage to the City, and that it is and will be impracticable to determine the actual amount of such damage in the event of delay or nonperformance; therefore, the Parties hereby agree to the liquidated damages specified in Chapter 14 of the A.J.C.C., incorporated by reference herein. B. Prior to assessing any of the liquidated damages set forth in this License and Chapter 14 of the A.J.C.C., the City Manager shall give licensee seven days written notice of its intention to assess damages. If the City Manager concludes that Licensee is in fact liable for liquidated damages pursuant to this Section 10, the City Manager shall issue to Licensee by certified mail a Notice of Intention to Assess Liquidated Damages. The Notice shall set forth the nature of the violation and the amount of the proposed assessment. Licensee must, within thirty (30) calendar days of receipt of such notice: 1. Respond to the City in writing, contesting the City s assertion of violation and providing such information or documentation as may be necessary to support Licensees position; or 2. Cure any such violation (and provide written evidence of the same), or, in the event that, by the nature of the violation, such violation cannot be cured within such thirty (30) calendar day period, take reasonable steps to cure said violation and diligently continue such efforts until said violation is cured. Licensee shall report to the City, in writing, at 30-day intervals as to Licensee s efforts, indicating the steps taken by Licensee to cure said violation and reporting Licensee s progress until such violation is cured. 30

215 C. In the event that Licensee contests the City s assertion of violation or fails to respond to the City s notice of intent to assess liquidated damages, within fourteen (14) calendar days the City shall schedule and then conduct a hearing in accordance with the procedures set forth in Article 14 of the A.J.C.C. At the public hearing the City may affirm or deny the violation in whole or in part. To the extent the City affirms the violation, it may fashion and enforce any appropriate remedy therefore including up to revocation of this Agreement. The City s decision shall be reduced to writing and delivered to Licensee. If the appropriate remedy is revocation of this Agreement, then such revocation shall not take effect until at least thirty (30) calendar days following delivery of the City s written decision to Licensee. 11. TRANSFERS AND ASSIGNMENTS A. Transfer of License. This License shall not be sold, assigned, or transferred, either in whole or in part, or leased, sublet (except as provided in 11(H) below), nor shall title thereto, either legal or equitable or any right, interest or property therein, pass to or vest in any person, without the prior written consent of the City, which consent shall not be unreasonably withheld. The sale or transfer of the License to an Affiliate of Licensee in all cases requires at least sixty (60) calendar days prior written notice to City, but does not require prior approval of the City as long as: (i) the sale or transfer of the existing or newly created equity interest in the Licensee does not result, directly or indirectly, in a transfer of Control of the Licensee; and (ii) the transferee already holds an ownership interest in the Licensee of twenty-five percent (25%) or more. Such consent shall not be required for a transfer in trust, mortgage, or other hypothecation in whole or in part to secure an indebtedness. The proposed assignee must show the transfer will not cause any increased risks of nonperformance of the License or any loss to the City of it s bargained for consideration in this License. The assignee s showings must at a minimum detail facts sufficient to show the assignee s technical ability, financial capability, legal qualifications, and general character qualifications and such other qualifications as reasonably determined by the City and the assignee must agree to comply with all provisions of this Agreement. B. Transfer of Control. No change, transfer, or acquisition of control of Licensee shall occur without the prior written consent of the City, which consent shall not be unreasonably withheld. Any sale or transfer of stock in Grantee so as to create a new controlling interest in the System shall be subject to the requirements of this 31

216 Section 11. The term controlling interest as used herein is not limited to majority stock ownership, but includes actual working control in whatever manner exercised. C. Notification: Licensee shall notify the City in writing no less than sixty (60) calendar days in advance of any actual or proposed change in, or transfer to, or acquisition by any other party, of control of Licensee. The sale or transfer of this License to an Affiliate of Licensee does not require prior approval of the City as long as: (i) the sale or transfer of the existing or newly created equity interest in the Licensee does not result, directly or indirectly, in a transfer of control of the Licensee; and (ii) the transferee already holds an ownership interest in the Licensee of twenty-five percent (25%) or more. D. Rebuttable Presumption: A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person, or group of persons (other than an Affiliate of Licensee), of more than twenty-five percent (25%) of the voting interest of the Licensee or of the person exercising management authority over the Licensee. The burden is on the Licensee to rebut this presumption. E. Hearing: Except in the case of an assignment of this License to an affiliate of Licensee as described above, upon written notification by the Licensee to the City of a proposed assignment of this License, or transfer of control or ownership of the Licensee, the City Manager shall issue his or her written notice fixing and setting forth the day, hour, and place certain when and where any persons having any interest therein may appear and be heard for a hearing. The City Manager shall cause such notice to be published in a newspaper of general circulation within the City. The City Manager also shall cause a copy of such notice to be mailed to the Licensee at least ten (10) calendar days prior to the date specified for the hearing. At the time set for such hearing, or at any adjournment thereof, the City Manager shall proceed to hear the matter. Following the close of such hearing, the City Manager shall prepare and file with the City Council his or her report of the hearing, his or her findings, and an opinion containing his or her recommendations to the City Council and the reasons therefore. If after the expiration of ten (10) calendar days following receipt of the City Manager s report and opinion, the City Council shall find that the assignment of this License or transfer of control or ownership of Licensee will not be detrimental or injurious to the best interests and welfare of the subscribers and users, and of the City, then the City Council by resolution shall consent to the assignment of the License or transfer 32

217 of control or ownership of the Licensee. Such resolution shall there upon become and shall be a part of this Agreement. F. Not a Waiver of Rights: The consent or approval of the City Council to any transfer of this License shall not constitute a waiver or release of the rights of the City in and to the public rights-of-way, and any transfer shall, by its terms, be expressly subordinate to the terms and conditions of this Agreement. G. Payment of Fees: Notwithstanding any other requirement of this License, each applicant for a transfer or assignment must furnish with its request a nonrefundable filing fee in the amount established by the City Council, by cash, certified or cashier s check, wire transfer, or in any other manner acceptable to the City Manager made payable to the City. No proposal for a transfer or assignment of a License shall be considered without receipt of said fee. The fee will be used for the purpose of covering the City s cost in consideration of a transfer or assignment of this License. H. Signature Required: In no event shall a transfer of ownership be approved or effective without the successor-in-interest first becoming a signatory to this Agreement. I. Grant, Rent or Lease of Systems: As long as a grant, rent, or lease does not amount to a transfer and is made in the ordinary course of business with prior notice to the City, Licensee in the normal course of providing Cable Services may grant, rent, or lease use of its System to other persons. Any such use shall be restricted to and consistent with such uses as the Licensee is authorized in this License or under other applicable law. Any such use shall be in compliance with applicable Federal and state law. Any such grants, lease, or rent by the Licensee shall not, however, thereby relieve Licensee of any requirement or obligation under this License as to its use of the Streets, and any such grant, rent, or lease shall require that such other person comply with the appropriate provisions of the City Code, and the License as such use warrants. The grant, lease, or rent shall expressly provide for the authority of the City under applicable law to regulate the use provided by the grant, lease, or rent (including but not limited to the authority to protect the public welfare, safety, and health) and to enforce compliance with any applicable standards established by the City Code or this License. J. Void Ab Initio: Any attempted transfer or assignment action by Licensee that does not in all ways comply with this Section 11 shall be void ab initio. 33

218 K. Novation Prohibited: Except as provided in this Section 11, no other substitution of Licensee creating a novation shall occur without the prior written consent of the City which may be withheld at the sole discretion of the City. 12. MISCELLANEOUS PROVISIONS A. Time of the Essence. Whenever this Agreement sets forth any time for any action to be performed by, or on behalf of, Licensee, that time shall be deemed of the essence. B. Subsequent Action by State or Federal Bodies. 1. Complete Agreement. It is the intent of the City and Licensee that the terms, conditions and obligations set forth in this Agreement govern their relationship for the full term of the Agreement. With the exception of Sections 3(A)(9), 4(A)(1) and 5(E), in the event that any court, agency, commission, or other authority of competent jurisdiction declares this Agreement invalid, in whole or in part, or requires Licensee either to: (a) perform any act which is inconsistent with any provision of this Agreement, or (b) cease performing any act required by any provision of this Agreement, then Licensee shall not be required to comply with any term declared invalid and shall comply with any requirements of the court. 2. Clarification of Law. Unless otherwise set forth in this Agreement, either Party may seek a ruling about the applicability to the terms of this Agreement of any court determination, federal or state law or regulation rendered, issued, approved, adopted or enacted after the execution of this Agreement. C. Non-enforcement by the City. Licensee shall not be relieved of its obligation to comply with any of the provisions of this Agreement by reason of any failure of the City to enforce prompt compliance. D. Delays and Failures Beyond Control of Licensee or the City. Neither City nor Licensee, as the case may be, shall be considered not to have performed its obligations under this Agreement in the event of enforced delay (an Enforced Delay ) due to causes beyond its control and without its fault or negligence or failure to comply with all applicable laws, including, but not restricted to, acts of God, fires, floods, epidemics, pandemics, quarantine, restrictions, embargoes, labor disputes, and unusually severe weather. 34

219 E. Conflicts of Interest. The provisions of A.R.S relating to cancellation of contracts due to conflicts of interest shall apply to this Agreement. F. Severability. The City and Licensee each believe that the execution, delivery and performance of this Agreement are in compliance with all applicable laws. However, with the exception of Sections 3(A)(9), 4(A)(1) and 5(E), in the unlikely event that any provision of this Agreement is declared void or unenforceable (or is construed as requiring the City to do any act in violation of any applicable laws, including any constitutional provision, law, regulation, or City Code), such provision shall be deemed severed from this Agreement and this Agreement shall otherwise remain in full force and effect; provided that this Agreement shall retroactively be deemed reformed to the extent reasonably possible in such a manner so that the reformed agreement (and any related agreements effective as of the same date) provide essentially the same rights and benefits (economic and otherwise) to the Parties as if such severance and reformation were not required. Unless prohibited by applicable laws, the Parties further shall perform all acts and execute, acknowledge and/or deliver all amendments, instruments and consents necessary to accomplish and to give effect to the purposes of this Agreement, as reformed. G. Written Notice. All notices, reports or demands required to be given in writing under this Agreement shall be deemed to be given when delivered personally to Licensee or to the City or when three (3) business days have elapsed after it is deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepaid thereon, addressed to the party to which notice is being given. The addresses may be changed by either party upon notice to the other party given as provided in this Section. At the time of this continuation of this Agreement by the City Council, the addresses of the parties are as follows: City of Apache Junction: City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ Attention: City Manager 35

220 With a non-binding courtesy copy to: City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ Attention: City Attorney Licensee: Qwest Broadband Services, Inc. d/b/a CenturyLink 1801 California St., 10 th Fl. Denver, CO Attn: Public Policy With a non-binding courtesy copy to: CenturyLink 20 E. Thomas St. Phoenix, AZ Attention: Public Policy No notices, reports or demands to the City shall be deemed delivered unless a true and complete copy of each such notice, report or demand is simultaneously delivered to the following, which is only an administrative notice, and does not by itself constitute written notice: City of Apache Junction 300 E. Superstition Blvd. Apache Junction, AZ Attn: City Attorney Licensee and City may from time-to-time substitute new service addresses and served parties by giving the other no less than thirty (30) days written notice to the other. H. Titles. Titles to sections and subsections of this Agreement are provided for ease of locating information within the Agreement. A title shall not be deemed to change or alter the meaning of any section or subsection. The language of each section and subsection shall control its interpretation. I. Modification. Except as otherwise provided in this Agreement, or by applicable law, no provision of this Agreement shall be amended or otherwise modified (by passage of a subsequent ordinance or code 36

221 or otherwise), in whole or in part, except by an instrument in writing duly executed by the City and Licensee. J. Governing Law, Venue and Attorney Fees. The terms and conditions of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona. Any action at law or in equity brought by either Party for the purpose of enforcing a right or rights provided for in this Agreement, shall be tried only in a state court of competent jurisdiction in Pinal County, State of Arizona. The Parties hereby unconditionally waive all provisions of law providing for a change of venue in such proceeding to any other county or for removal to federal court. In the event either Party shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition in this Agreement, it is mutually agreed that the prevailing party in such final and non-appealable action to the percentage it prevails may recover its costs including: all litigation and appeal expenses, collection expenses, reasonable attorneys fees, necessary witness fees and court costs to be determined by the court in such action only as may be awarded by the Court. For purposes of this provision, reasonable attorney fees must be calculated as the average of all independent legal counsel practicing in the City of Apache Junction, Arizona. K. No Third Party Beneficiaries. By entering into this Agreement, the Parties expressly do not intend to create any obligations or liabilities, or promise any performance to, any third party, nor have the Parties created for any third party any right to enforce the terms of this Agreement. L. Relationship between the Parties. Nothing contained in this Agreement shall be construed as creating an association, trust, partnership, joint venture, or agency relationship of any kind between the Parties. Each Party shall be individually liable for its own duties, obligations and liabilities under this Agreement. M. Mutual Representations and Warranties of Authority. The Parties each represent and warrant that they have full authority to enter into and to perform under this Agreement, and that no further approvals, licenses or actions by a governmental agency are required by either Party to execute and enter into this Agreement. N. Conflict Between Ordinance and Agreement. In the event of any conflict between the terms and conditions of this Agreement and the provisions of the Ordinance, the provisions of this Agreement shall control. Licensee expressly acknowledges and agrees that 37

222 the City hereby retains all of its police powers and the City may unilaterally amend the Ordinance in the exercise of its police powers and Licensee shall comply with said Ordinance as may be amended. By executing this Agreement both the City and Licensee acknowledge and agree that neither is aware of any conflicts between this Agreement and the Ordinance. O. Business License and Privilege License Tax Applicability. Licensee represents and warrants that any license necessary to perform the work under this Agreement is current and valid. Licensee understands that the activity described herein constitutes doing business in the City of Apache Junction and Licensee agrees to obtain a business license pursuant to Article 8 of the Apache Junction City Code and a privilege license to the extent the Apache Junction City Tax Code is applicable and keep such licenses current during the term of this Agreement. Any activity by subcontractors within the corporate City limits, will invoke the same business and tax regulations on any subcontractors, and Licensee ensures its subcontractors will obtain any required licenses. All contractors and subcontractors shall also provide proof of insurance for all right-of-way work as dictated by the Public Works Department Director. ATTEST: KATHLEEN CONNELLY City Clerk JOHN S. INSALACO Mayor APPROVED AS TO FORM: RICHARD J. STERN City Attorney 38

223 WRITTEN ACCEPTANCE OF LICENSE AGREEMENT Accepted and approved without changes or modifications: Qwest Broadband Services, Inc. d/b/a CenturyLink, Inc. By: Title: Date: APPROVED AS TO FORM: Counsel for CenturyLink, Inc. STATE OF ARIZONA ) ) ss. COUNTY OF ) The foregoing was acknowledged before me this day of, 20, by John S. Insalaco, as Mayor of the City of Apache Junction, Arizona, an Arizona municipal corporation. My Commission Expires: Notary Public STATE OF ) ) ss. County of ) The foregoing was acknowledged before me this day of, 20, by as of Qwest Broadband Services, Inc. d/b/a CenturyLink, Inc. a Delaware corporation. My Commission Expires: Notary Public 39

224

225 City of Apache Junction, Arizona Agenda Item Cover Sheet 300 E Superstition Boulevard Apache Junction, AZ Agenda Item No. 12. File ID: Sponsor: Larry Kirch Index: Agenda Date: 1/20/2015 In Control: City Council Meeting Presentation and discussion on city building code and related city code updates. Staff will discuss updating the city s building codes to the 2015 edition of the International Code Council Series of Codes. The city s current code is based on the 2006 edition. Attachments: City of Apache Junction, Arizona Page 1 Printed on 1/13/2015

226 City Council January 20, 2015 Work Session Updating the City s 2006 International Building Codes to the 2015 Editions City of Apache Junction Development Services Department