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HomeMy WebLinkAbout2022.1018.TCRM.Packet       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Gerry Friedel Councilmember Sharron Grzybowski Councilmember Alan Magazine Councilmember Peggy McMahon Councilmember Mike Scharnow Councilmember David Spelich    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, OCTOBER 18, 2022 WHERE:   FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting.   Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.    REQUEST TO COMMENT The public is welcome to participate in Council meetings. TO SPEAK TO AN AGENDA ITEM, please complete a Request to Comment card, located in the back of the Council Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments should be directed through the Presiding Officer and not to individual Councilmembers. TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town Clerk prior to discussion, if possible. TO COMMENT IN WRITING ONLINE: Please feel free to provide your comments by visiting  https://www.fh.az.gov/publiccomment and SUBMIT a Public Comment Card by 3:00 PM on the day of the meeting. These comments will be shared with the Town Council.        NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).        1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey     2.MOMENT OF SILENCE     3.ROLL CALL – Mayor Dickey     4.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.RECOGNITION: Stellar Students of the Month for October.    B.PROCLAMATION: October 23 - 31, 2022, as Red Ribbon Week.    5.SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS     A.Interim Report from the Citizen Streets Committee regarding evaluation of street conditions from 2017 and 2022.       6.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda.     7.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its   Town Council Regular Meeting of October 18, 2022 2   which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda.   A.CONSIDERATION AND POSSIBLE ACTION: Approval of the Regular Meeting of the Town Council on September 20, 2022. Approval of the Work Session of the Town Council on September 20, 2022. Approval of the Special Meeting of the Town Council on August 22, 2022.     B.PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Approval of a Liquor License Application for the Hogwash Saloon, located at 16737 East Parkview Avenue Suite B, Fountain Hills, Arizona, for a Series 6 (Bar) license.      C.CONSIDERATION AND POSSIBLE ACTION: Approval of budget transfers for the Tourism Fund as a result of grant awards from the Arizona Office of Tourism.     D.CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2023-33 with Safebuilt to provide building inspection services in the Development Services Department.     E.CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-44, abandoning the 20' Public Utility and Drainage Easement along the north side of 17012 E Jacklin Drive (Application A22-000010)     F.CONSIDERATION AND POSSIBLE ACTION: Approving staff to seek and apply for grants from the Federal Emergency Management Agency (FEMA).       8.REGULAR AGENDA     A.CONSIDERATION AND POSSIBLE ACTION: To approve the recommendations for the appointment of members to the Town's Boards, Commissions, and Committees.      B.CONSIDERATION AND DIRECTION: Possible amendments to Town Code Article 8-6, Vacation Rentals, to incorporate additional regulations as allowed by changes to state statutes.     C.DISCUSSION AND POSSIBLE DIRECTION: Approving in concept the control room building for the Sanitary District ASR Well #1 Building Addition at Fountain Park.     D.CONSIDERATION AND POSSIBLE ACTION: Approval of Contract Amendment 2022-057.1 to Artistic Land Management Landscaping, Inc.     E. CONSIDERATION AND POSSIBLE ACTION: approving Cooperative Purchasing Agreement   Town Council Regular Meeting of October 18, 2022 3   E. CONSIDERATION AND POSSIBLE ACTION: approving Cooperative Purchasing Agreement 2023-046 with National Auto Fleet Group.     F.CONSIDERATION AND POSSIBLE ACTION: Extension of a Special Use Permit to allow residential uses on a 0.58 acre property in the Community Commercial (C-C) zoning district at 17134 E. Kingstree Blvd., generally located at the northwest corner of Saguaro Blvd. and Kingstree Blvd.       G.CONSIDERATION AND POSSIBLE ACTION: approving Professional Services Agreement 2023-047 between the Town and Roadway Asset Services, LLC for Pavement Condition and Evaluation Related Services     H.CONSIDERATION AND POSSIBLE ACTION: Approve a settlement agreement and release and adopt Resolution 2022-45 approving a first amendment to the development agreement between the Town of Fountain Hills and N-Shea Group, LLC and Park Place Properties, LLC.     9.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council.     10.ADJOURNMENT         CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this ______ day of ____________________, 2022. _____________________________________________  Linda G. Mendenhall, MMC, Town Clerk   The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5199 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. Town Council Regular Meeting of October 18, 2022 4   Town Council Regular Meeting of October 18, 2022 5   ITEM 4. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Staff Contact Information: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council Request to Town Council Regular Meeting (Agenda Language):  PROCLAMATION: October 23 - 31, 2022, as Red Ribbon Week. Staff Summary (Background) Mayor Dickey will be proclaiming October 23 - 31, 2022, as Red Ribbon Week. Attachments Proclamation - Red Ribbon Week October 2022  Form Review Inbox Reviewed By Date Finance Director David Pock 10/10/2022 05:55 PM Town Attorney Aaron D. Arnson 10/10/2022 07:29 PM Town Manager Grady E. Miller 10/10/2022 08:06 PM Form Started By: Linda Mendenhall Started On: 10/10/2022 05:13 PM Final Approval Date: 10/10/2022  ITEM 5. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Public Appearances/Presentations                   Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Staff Contact Information: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  Interim Report from the Citizen Streets Committee regarding evaluation of street conditions from 2017 and 2022.   Staff Summary (Background) The citizen streets committee was formed last year with the mission of reviewing the condition of town streets and developing recommendations relating to the town's long-term street needs. The town is very fortunate to have a high caliber of residents serving on the citizen streets committee. The committee is comprised of residents who have backgrounds in streets, public works, engineering, business, human resources, marketing, local government, and other areas that have positively contributed to the process. The committee members are as follows: Buck Haworth, Kim Colenso, Karl Manthe, Gregg Dudash, Christopher Plumb, Jerry Butler, Dean Hughson, George Mitchell, Bernie Hoenle, Gary Salavitch, Jeffrey Kerr, Joe Mueller, and Mark Graham.     While the committee has not completed its review yet, committee member and designated spokesperson, Mark Graham, will be providing an update on the process and will share additional preliminary findings with the Town Council at its meeting on October 18, 2022. The plan is for the committee to develop and present a report in the near future that includes its findings, recommendations, and strategies for addressing the town's long-term streets needs.  Attached is an interim report from the committee that will be summarized in Mr. Graham's presentation to the Council.   Attachments Interim Pavement Report Memo  Form Review Inbox Reviewed By Date Finance Director David Pock 10/10/2022 11:54 AM Town Attorney Aaron D. Arnson 10/10/2022 07:31 PM Town Manager (Originator)Grady E. Miller 10/10/2022 08:05 PM Form Started By: Grady E. Miller Started On: 10/06/2022 11:43 AM Final Approval Date: 10/10/2022  Citizen Streets Committee MEMORANDUM DATE: October 18, 2022 TO: Mayor and Council FROM: Citizen Streets Committee SUBJECT: Update on Streets The attached information reflects work during the last year of the Streets Advisory Committee. We believe an interim report is timely in as much as the recent campaign for town officers demonstrated a clear awareness of the issue. And for good reason. As this memo describes, we estimate that nearly a third of the town’s street mileage is in failing condition. Our final recommendations will be forthcoming later this year or early in 2023, as we await Town Council approval for and completion of an updated assessment of all Town streets by a third-party engineering firm, as the data the committee has been using is over five years old. The data from the updated assessment will help the committee and town staff to formulate a plan and strategies to address the town’s near term and longer term streets needs. What’s clear is that additional investment in our streets is necessary. We appreciate that the Mayor and Council have agreed to use $8 million in one-time federal assistance to supplement the ongoing streets budget. While this is an important step to take, this short-term action will not be sufficient to significantly reduce the backlog of failing streets and maintain other lane streets in adequate condition. We appreciate the opportunity to work with the Town Manager and Director of Public Works on this issue. We hope our input assists the town’s elected officials in evaluating what steps to take. The citizen streets committee is comprised of residents who have backgrounds in streets, public works, engineering, business, human resources, marketing, local government, and other areas that have positively contributed to the process. The committee members are as follows: Buck Haworth, Kim Colenso, Karl Manthe, Gregg Dudash, Christopher Plumb, Jerry Butler, Dean Hughson, George Mitchell, Bernie Hoenle, Gary Salavitch, Jeffrey Kerr, Joe Mueller, and Mark Graham. INFORMATION The information contained herein compares actual street conditions in 2017 with 2022 estimated conditions based on worksheets created last month. The table below summarizes the street letter-grade conditions based on 2017 tests (IMS data). A letter grade of “A” represents pavement that is in excellent condition, and a grade of “F” represents a pavement condition that is in extremely poor condition: 2017 Street Conditions (based on pavement testing/analysis) Road Classification Pavement Rating A B C D F Arterials 29.7% 34.7% 22.2% 14.1% 0.0% Collectors 12.7% 27.6% 22.9% 36.0% 0.8% Locals 2.8% 12.0% 17.6% 59.1% 8.4% Network 9.7% 19.1% 19.4% 46.3% 5.5% IMS deemed the share of streets in “backlog” condition (letter-grade F, PCI rating under 40) as “manageable”. But IMS called attention to the share of streets in “D” condition (PCI ratings between 55-40). It stated that the Town’s annual budget was insufficient and would lead to substantial backlog growth. To estimate current conditions, it is necessary (1) to calculate the deterioration of streets, using IMS projections, and (2) to account for the impact of improvements that have occurred. The table below does that. Because the maintenance investment since 2017 was less — by several million dollars —than recommended by IMS, the backlog has grown significantly. 2022 Estimated Street Conditions Road Classification Pavement Rating A B C D F Arterials 19.1% 33.3% 18.7% 14.1% 7.0% Collectors 9.2% 23.9% 21.9% 29.8% 15.1% Locals 31.9% 8.4% 7.8% 22.6% 29.4% Network 25.7% 15.9% 12.2% 23.6% 22.6% The committee’s basic charge is to advise the Council on the state of current conditions and to recommend actions. The table above shows that one focus will need to be reducing the backlog. Development of formal recommendations awaits completion and review of the next round of comprehensive street condition tests. A Request for Proposals (RFP) has been issued and proposals are due back this month. In September the Town Council will be briefed. If approved, a Notice to Proceed (NTP) can be issued in October. In the near term, the Town’s annual street spending, estimated at $2.5 million/year, will be supplemented by up to $8 million in one-time federal funds. This level of spending is insufficient to address the backlog and prevent deterioration of streets in better condition. FOUNTAIN HILLS STREET NETWORK (3.6M Square Yards) Overview:  Arterials (736,870 SY, 123 segments)  Collectors (599,007 SY, 147 segments)  Locals (2,291,155 SY, 1,175 segments)  2017 IMS data used to generate interactive spreadsheets (except alleys)  Spreadsheets include A-B-C-D-F letter-grades; approximately 30,000 entries 2022 Conditions forecast using IMS deterioration curves 2017-2022 Improvements included 2022-2027 (5-Year Program) Improvements identified  2022-2027 assumed revenues available, $20.5M ($8M fed; $2.5M/year town)  Future costs based on 2022 Town staff unit prices, plus 3% inflation Street Conditions:  2017 Actual: Arterials: 64.4% “A & B”; 14.1% “D & F” Collectors: 40.3% “A & B”; 36.8% “D & F” Locals: 14.8% “A & B”; 67.5% “D & F” Network: 28.8% “A & B”; 51.8% “D & F”  2022 Forecast: Arterials: 52.4% “A & B”; 21.1% “D & F” (slipping behind, 7.0% in backlog) Collectors: 33.1% “A & B”; 44.9% “D & F” (slipping behind, 15.1% in backlog) Locals: 40.3% “A & B”; 52.0% “D & F” (making modest gains, but backlog is 29.4%) Network: 41.6% “A & B”; 46.2% “D & F” (making modest gains, but backlog is 22.6%) CONCLUSION: The existing $2.5M annual budget for pavement maintenance is insufficient. While the additional $8M in one-time funding helps to a degree, it will not adequately address the mid to long-term needs of the community. ITEM 7. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of the Regular Meeting of the Town Council on September 20, 2022. Approval of the Work Session of the Town Council on September 20, 2022. Approval of the Special Meeting of the Town Council on August 22, 2022. Staff Summary (Background) The intent of approving meeting minutes is to ensure an accurate account of the discussion and action that took place at the meeting for archival purposes. Approved minutes are placed on the town's website and maintained as permanent records in compliance with state law. The minutes for the Special Meeting of August 22, 2022, need to be corrected due to a scrivener error. The minutes were previously approved at the September 20, 2022 meeting.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Staff recommends approving the minutes of the Regular Meeting of September 20, 2022, the Work Session of September 20, 2022, and the Special Meeting of August 22, 2022. SUGGESTED MOTION MOVE to approve the minutes of the Regular Meeting of September 20, 2022, the Work Session of September 20, 2022, and the Special Meeting of August 22, 2022 as presented.   Attachments Attachments 2022.0920.TCRM.Minutes  2022.0920.TCRM.Verbatim Transcript  2022.0920.TCWS.Minutes  2022.0920.TCWS.Verbatim Transcript  2022.0822.TCSP.Minutes  2022.0822.TCSP.Verbatim Transcript  Form Review Inbox Reviewed By Date Finance Director Linda Mendenhall 10/12/2022 11:11 AM Town Attorney Aaron D. Arnson 10/12/2022 11:15 AM Town Manager Grady E. Miller 10/13/2022 10:48 AM Form Started By: Linda Mendenhall Started On: 10/10/2022 05:28 PM Final Approval Date: 10/13/2022  TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL SEPTEMBER 20, 2022 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Dickey called the Regular Meeting of the Fountain Hills Town Council held on September 20, 2022, to order at 5:30 p.m. and led the Council and audience in the Pledge of Allegiance. 2. MOMENT OF SILENCE A moment of silence was held. 3. ROLL CALL Members Present: Mayor Ginny Dickey: Vice Mayor Gerry Friedel; Councilmember David Spelich; Councilmember Sharron Grzybowski; Councilmember Alan Magazine; Councilmember Peggy McMahon; Councilmember Mike Scharnow Members Absent: None Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Thirty-eight members of the public were present. 4. REPORTS BY MAYOR, COUNCIL MEMBERS, AND TOWN MANAGER A. RECOGNITION: Stellar Students of the Month for September Mayor Dickey recognized the following students who were in attendance for their achievements. Pablo Michel, McDowell Mountain Elementary School Natalie Guerrette, Fountain Hills Middle School Jacob Langner, Fountain Hills Middle School Matthew D’Anna, Fountain Hills High School B. PROCLAMATION: September 17 - 23, 2022, as Constitution Week. Mayor Dickey issued a proclamation on Constitution Week. Viree Byrne, Regent, Four Peaks Chapter of NSDAR accepted the proclamation and expressed her appreciation. Clerk’s Note: during the reports by Mayor, Council members, and the Town Manager item, Councilmember Magazine stepped away from the dais at 5:47 p.m. and returned at 5:50 p.m. 5. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS A. PRESENTATION: Water Issues Update: Presented by Doug Dunham Chad Guzman, Director of Government Relations for EPCOR introduced the speakers for the water issues update. Frank Metzler, Director of Operations for EPCOR provided an update on the water system infrastructure for Fountain Hills and answered the council’s questions. Doug Dunham, Water Resources Manager for EPCOR provided an update on water resources, the drought, and the possible impacts on water service delivery in Arizona and Fountain Hills and answered the council’s questions. B. PRESENTATION: Monthly Report by Captain Kratzer of the Maricopa County Sheriff’s Office. Captain Kratzer of the Maricopa County Sheriff’s Office provided an update on law enforcement services and answered the council’s questions. 6. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda. The Following residents addressed the council under the Call to the Public. Linda Salavitch, a Fountain Hills resident, addressed the council regarding homelessness and asked for a call to action on this issue. Rick Watts, a Fountain Hills resident, addressed the council regarding the community center and the report prepared by the Allana Buick and Bers Company. Larry Meyers, a Fountain Hills resident, addressed the council regarding the community center and expressed his concern over the organic material identified in the June 14th report by Allana Buick and Bers Company. 7. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda. Mayor Dickey removed #7D from the consent agenda for separate consideration and approval. MOVED BY Sharron Grzybowski to approve the Consent Agenda without item #7D, SECONDED BY Vice Mayor Gerry Friedel. Vote: 7 – 0 passed – Unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye A. CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Special Meeting of August 22, 2022, and Work Session of August 22, 2022. B. CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application for the Fountain Hills Chamber of Commerce to serve alcohol at the Dance and Glow Party on October 22, 2022. . C. CONSIDERATION AND POSSIBLE ACTION: Approval of Liquor License Application for Bone Haus Brewing, location 14825 E. Shea, Fountain Hills, Arizona, for an Extension of Premises/Patio Permit to create a cellaring room for the brewery. THE FOLLOWING ITEM WAS PULLED FROM THE CONSENT AGENDA TO BE VOTED ON SEPARATELY: D. CONSIDERATION AND POSSIBLE ACTION: Approval of budget transfers for the Capital Project Fund, Vehicle Replacement Fund, and Facilities Reserve Fund, Special Revenue Fund, and General Fund. David Pock, Finance Director, presented the budget transfers listed in the staff report. MOVED BY Councilmember Mike Scharnow to approve the budget transfers as requested, SECONDED BY Councilmember Alan Magazine. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye 8. REGULAR AGENDA A. CONSIDERATION AND POSSIBLE ACTION: A request for a Special Use Permit to allow up to four dwelling units in the C-C (Common Commercial) zoning district on an 8,000 square-foot lot located at the northwest corner of El Pueblo Boulevard and Ivory Drive (Case #SUP22-000001). Mayor Dickey opened the item up for public comment. The following residents addressed the council. John Gurczak, a Fountain Hills resident and the builder and developer of the property, provided additional input on the parking for this location and answered the council’s questions. Betsy LaVoie, a Fountain Hills resident, addressed the council, stating the need for more housing in Fountain Hills and mentioning the council’s past approvals for special use permits. Don Prescott, a Fountain Hills resident, addressed the council regarding the special use permit, mentioning that he welcomes commercial and residential neighbors. MOVED BY Vice Mayor Gerry Friedel to approve the Special Use Permit to 22- 000001 to allow up to four dwelling units and require the parking spaces in the building to be designated for tenant or owner use, as approved through site plan review, SECONDED BY Councilmember Alan Magazine. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye 9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council. 10. ADJOURNMENT MOVED BY Mayor Ginny Dickey to adjourn, SECONDED BY Councilmember Alan Magazine. Vote: 7 – 0 Passed – Unanimously The Regular Meeting of the Fountain Hills Town Council held on September 20, 2022, adjourned at 7:35 p.m. TOWN OF FOUNTAIN HILLS _________________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 20th day of September 2022. I further certify that the meeting was duly called and that a quorum was present. DATED this 18th Day of October 2022. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS Page 1 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 1 of 50 Post-Production File Town of Fountain Hills September 20, 2022 City Council Meeting Transcription Provided By: eScribers, LLC * * * * * Transcription is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings. * * * * * TOWN OF FOUNTAIN HILLS Page 2 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 2 of 50 MAYOR DICKEY: Good evening, everyone. Please, stand for the Pledge and remain standing. ALL: I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. MAYOR DICKEY: Thank you. Please remain standing for a moment of silence. Thank you, all. Okay. Roll call, please. MENDENHALL: Thank you, Mayor. Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor Friedel? FRIEDEL: Present. MENDENHALL: Councilmember McMahon? MCMAHON: Here. MENDENHALL: Councilmember Scharnow? SCHARNOW: Here. MENDENHALL: Councilmember Magazine? MAGAZINE: Here. MENDENHALL: Councilmember Spelich? SPELICH: Present. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MAYOR DICKEY: Thank you. We will start with our reports. Grady, do you have a report today? MILLER: Yes, I've got some exciting news. Kind of giving this a little bit away, but I'll share it with the public. You probably recall at the last council meeting we had a great presentation from our deputy town manager and community services director, Rachael Goodwin, about the national gold medal award from her professional organization, the National Parks and Recreation Association. Well, today, the conference awarded the town of Fountain Hills Community Services Department the national gold medal award. This is a huge honor TOWN OF FOUNTAIN HILLS Page 3 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 3 of 50 for the town and really could not have been done without the leadership of Rachael and her team to get to where we are. This is the second year that we were nominated and made it to the finals. Last year, as you recall, we were one of the three finalists but this year we actually won the award. We'll actually have the award at some point, and we'll keep that in a public display area so that the whole public can see it. So really big deal. I also want to remind the Council and the public that our annual report for fiscal year '21/'22 is online now and it's available for you to review. This covers the time period of fiscal year '21/'22. Also, our most recent issue of the Fountain Hills Insider, which is our community newsletter, hit the mailboxes starting last week. It has a lot of -- if you look at the backside of it, it's chockfull of events, pretty much between now and the end of the calendar year. That's all I have, Mayor. MAYOR DICKEY: Thank you. Councilmember. MCMAHON: Good evening. I have a couple of things if you don't mind. Ballet Under the Stars was really a great turnout and it was a wonderful event, everybody enjoyed it. Last week the Maricopa County Association of Governments called a special meeting for the economic committee to talk about the fact that Governor Ducey vetoed Prop 400, which is the half a cent tax that funds our infrastructure and transit systems throughout the Valley. This is going to have a severe impact, by the billions of dollars, on the future growth of Maricopa County and other surrounding counties. And we really all need to be educated about and pay attention so that if it comes back up on the ballot, we all understand it. So I think Grady's working with MAG to have them come out and do a presentation to the Council and to the citizens, so we'd better understand the consequence of that veto. Also, I attended East Valley Partnership Annual Stateman's luncheon where it was discussing a little bit about the division of politics in the nation and locally and that was interesting. I also attended Teen Court. We have a Teen Court here that I found really, really interesting. It's a diversion program and when teens commit misdemeanors, instead of TOWN OF FOUNTAIN HILLS Page 4 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 4 of 50 going through the full court system or to jail, they agree to go through Teen Court. And what Teen Court is, it's held in the courtroom here and a jury of their peers, they're high school students, come in and it's just like a courtroom run. He's talked about what happened to himself. He goes out. The jury of his peers deliberates. Then they come back in, and they all agree on what community service or whatever he's going to do. And he has to do it through the Maricopa County Probate Department, or his record isn't exonerated. So it was really interesting to watch these teenagers think, deliberate, and ask some pretty hefty questions of one of their fellow students. And also, the Leadership Academy had an opening ceremony last week and Class 6 is now having sessions over the next few weeks and on Thursday, we're going to be hosting the class for Know Your Town. And then that's about it. MAYOR DICKEY: Thank you. Vice Mayor? FRIEDEL: Thank you, Mayor. I'd like to congratulate the town and Rachael and her department on the gold medal award. It's well, well due. I also attended the Leadership Academy dedication and there's a lot of really dedicated people in the town that attended that night. So congratulations to Class 6. I'm sure you'll do really well. And a little reminder that we have our homecoming game for our Fountain Hill Falcons on Friday night. So if anybody's around, they can get out to that game and support our home team. And I also attended several ribbon cuttings for the Chamber during the last week and a half. Thank you. MAYOR DICKEY: Thank you. GRZYBOWSKI: First, I'd like to mention the gold medal that our community services folks won as well. I don't know if you guys remember but last year when we came in as one of the four finalists, that's how we got hooked up with our skatepark lights and the fast mini pitch, dang nabbit, I just don't understand why it's called that, so it just doesn't stick in my head. Anyway, it's super exciting. Hopefully we'll get some fun stuff. Definitely recognition if nothing else, out of being the winner this year. TOWN OF FOUNTAIN HILLS Page 5 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 5 of 50 The one meeting I want to talk about is, as a guest of the Phoenix East Valley Critical Infrastructure and Transportation Committee, I attended the Chandler Chamber meeting regarding next steps after Governor Ducey vetoed an approved ballot measure that would have allowed Maricopa voters to extend a sales tax to fund transportation projects. This dedicated half cent sales tax was developed by the Maricopa mayors in the '80s because the state wasn't able to get a plan together for highway spending. In 2004, the mayors realized that it was still needed, so they worked together again to make it happen. Both times -- wow, I'm so exciting, I turn the lights off. Both times this was approved by the Maricopa voters. That half cent sales tax represents over 50 percent of the county's overall portfolio. Without this continued investment, much of our growth is at risk. Roadways are one of our biggest attractions to new businesses. We'll also see our assets decay without this funding. The representative from Maricopa Association of Government says that the devastation from losing this dedicated half cent sales tax cannot be understated. The group is working on an impact study to make sure that the governor, state legislators, and candidates for those positions, understand how important this is for Maricopa roadways, which also impacts the traffic through out state. Thank you. MAYOR DICKEY: Thanks very much. So glad that you both were able to hear that firsthand, the kind of stuff that Grady and I, and probably Mike too with RPTA have heard so much over the last several months. And also congratulations to Rachael and because what is reflected in that is that she's serving and we are serving our community with wonderful parks and with activities and we look forward to more, including Oktoberfest which is also on Friday and Saturday. I met with a potential connection for a program that will be about schools for our possible spring Fountain Hills Cares event, but right now the one that's coming up on October 20th will be for veterans. So we look forward to that. I think we put some information out about that today. I attended our East Valley meeting, quarterly meeting. The Greater Phoenix Economic Council had our Mayor Supervisors meeting, it's the 29th session for the legislative director for GPEC, whose name is Rob Dalager, but I knew him as the chief of staff at the TOWN OF FOUNTAIN HILLS Page 6 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 6 of 50 senate when I worked there in 1998. So he's been at this for a long time and really doing his best for economic development in the State of Arizona. At that time we had a 15/15 split in the senate, so it was a unique time of bipartisanship and things worked out really well. At GPEC we've been having similar conversations and about Prop 400 of course, but as we are with MAG and the league about cities and towns having local decision-making sort of being eroded year after year, including our zoning, which we really are keeping an eye on this year. GPEC has been very successful at attracting businesses and activity in the Valley and we expect water to be an issue and we'll hear more about that today. But also the power grid has now started to become an issue, so he finds himself discussing that, trying to remain competitive here in Arizona, which so far, we have been. We had a sister city planning meeting for possible international visitors here; hopefully more to come on that. Speaking of that, we had community relations director, Bo Larsen, our economic development director, Amanda Jacobs and I met with the delegation from Israel which was coordinated by the Global Ties Arizona which is the implementing organization for the State Department. They have an international visitor leadership program. They had lunch here in town. They met with sister cities reps and they were some policy advisor for Knessett very high up. They were informative and lively and left me wanting to look more up about their country. We met with our branding team, which we're in the process of that right now with Councilmember Magazine and Director Goodwin, and town manager, and Bo and there's more to come on that too. Leadership Academy, that was awesome. And that's it for activities. I forgot to mention that Item 70, the consentage item, will be the first item on the regular agenda. We had a request to do that. So that takes care of that. Our next good part of the meeting is our stellar students. So the way we do this with the students, I read your name and what your friends and teachers said about you and the Angela gives you the certificate and then we'll take a picture with the paper when we're done. And while I'm down there though, I'll be calling on the Four Peaks Chapter of the DAR to come up and we'll do a proclamation for Constitution Week. TOWN OF FOUNTAIN HILLS Page 7 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 7 of 50 So we'll get started with the kids first. Well, McDowell Mountain, we'll begin with the elementary school. Emmalin Anaiya (ph.)? Is she here? Emmalin? No? Well, we'll read all the good stuff about her from her teachers and her principal. Emmalin has demonstrated all four of the Falcon pillars: respectful, responsible, safe, and kind. She always has a smile on her face and is willing to help whenever she can. So we'll make sure Emmalin gets their certificate. Next from McDowell, we have Pablo Michel. Is Pablo here? Yay. Come on up to see Angela. Pablo, he also has demonstrated all four of the Falcon pillars, being respectful, responsible, safe, and kind. He helps others all the time, and he gives maximum effort. That's Pablo. Next, we go to the middle school, and we have Natalie Guerrette. Is Natalie here? All right. I hope I said that right. So Natalie -- oh, Natalie is a force of nature. She's confident, creative, very bright, and a well-spoken young lady with a streak of blue hair. She's quick and -- where did you get that from? She's quick with her smile, always willing to answer questions. We see how she helps her classmates and her teachers frequently without even being asked. She's very kind to others, honest, and direct. That's Natalie. Also from the middle school is Jacob Langner. Is Jacob here? Jacob gets out of his car every day with a smile. He's a joy to have in classes. He participates in discussions, asks questions, and he always does his best work. Jacob is very kind, friendly, thoughtful and works well with anyone he's sitting with. You guys are with him right now. Thank you, Jacob. Now, we go to the high school. I know that Ketterick (ph.) isn't here, but Ketterick Garmin (ph.) from the high school is a joy to have in class. He's a very bright student with a bright future. He has A-plus in honor's English class and is a varsity athlete as a sophomore. So let's give it for Ketterick. And the last, but not least from the high school, is Matthew D'Anna. Is Matthew here? Matthew, he's very polite and respectful. Has a A in English 10. Matthew is a very bright student with a very bright future. Thank you, Matthew. All right. Look at the camera. All right. TOWN OF FOUNTAIN HILLS Page 8 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 8 of 50 Okay. Now, we're going to do a proclamation for Constitution Week. Thank you. Welcome. We're so happy to have you, Four Peaks Chapter of the DAR. So I'll give you this to hold and then I'll read it to you on a paper that I can actually see. Come on up, that's great. Constitution Week. Whereas the constitution of the United States of America, the guardian of our liberties and bodies, the principals of limited government in a republic, dedicated to rule by law. And whereas, September 17th, 2022 marks the 235th anniversary of the framing of the constitution of the United States of America by the Constitutional Convention. And whereas it is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary, and to the patriotic celebrations which will commemorate it. And whereas Public Law 915, guarantees the issuing of a proclamation each year by the President of the United States of America, designating September 17th through the 23rd as Constitution Week, so therefore I, Ginny Dickey, by virtue of the authority vested in me, mayor of Town of Fountain Hills, do hereby proclaim the week of September 17th through the 23rd, as Constitution Week and ask our citizens to reaffirm the ideals of the framers of the constitution that they had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties. Thank you so much for bringing this to us and if you'd like to say a few words, we'd love to hear from you. BYRNE: I would just like to thank you, Mayor Dickey, very much for helping us to commemorate Constitution Week and this most important document. MAYOR DICKEY: Thank you. Thanks so much for coming. Thank you. Thank you so much, everyone. Thanks for coming. Our next item is a presentation regarding water issues which has been a lot of interest recently. Grady? MILLER: Yes. Thank you, Mayor, and Council. As a number of you have been hearing from your constituents, there's been a lot of concern in the news media lately about the water reservoirs, Lake Mead and some of the TOWN OF FOUNTAIN HILLS Page 9 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 9 of 50 other major water reservoirs are way down from where they have been historically and the drought that we're in. We're delighted to have tonight, Doug Dunham, who is the manager of water resources for EPCOR. He's got a really great reputation. Previously, he had a career, a long career, over at Arizona Department of Water Resources. And we have, along with him, we also have the great team of EPCOR that has been very helpful to us and troubleshooting a lot of our customer issues relating to water. We have Frank Metzler, the director of operations. If you could just raise your hand. And Chad Guzman who is up here. He's about to introduce Mr. Dunham. He's our government relations manager and he's been very helpful when we've had matters or issues that need to get resolved. He's always right there. So I'll turn it over to Mr. Guzman before we kick off the presentation. GUZMAN: Thank you, Mayor Dickey, Councilmembers. For the record my name is Chad Guzman. I'm our director of government relations for EPCOR Water. First of all, just thank you so much for time on your busy agenda to come and talk about a very important topic, as Mr. Miller just outlined. Mayor Dickey, and everyone, thank you so much for your continued leadership on these important issues. Thank you so much to Bo Larsen, who is instrumental in helping us coordinate this presentation. He's been fantastic to work with and special thanks to town manager Miller who does a great job of keeping us informed about what's happening in the town and vice versa. Really appreciate the spirit of collaboration that we enjoy with the Town of Fountain Hills. So tonight, we are here to address water supply, water planning that EPCOR has engaged in for decades to prepare for this moment. In a time of drought, where we all read the headlines every day and with a new shortage declaration on the Colorado River by the federal government, we want to come here and instill confidence in you that EPCOR has been very well prepared for this moment, in the decades of planning that have gone into it. So tonight, I'm honored to introduce two of the senior mangers on our leadership team at EPCOR. First, our director of operations, Frank Metzler, who oversees this water system for the town of Fountain Hills. There is nobody that knows the nuts and bolts of this TOWN OF FOUNTAIN HILLS Page 10 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 10 of 50 water system better than Frank. He's going to give a kind of a system-specific overview of what we have here, infrastructure-wise for the town. And second, Doug Dunham, our manager of water resources, has decades of experience before coming to EPCOR, at the Department of Water Resources. Really one of the foremost experts in the field to talk from a more statewide higher-level perspective on water resource management for the State of Arizona. So with that, happy to introduce Frank Metzler. Thank you. METZLER: Good evening. Let's see here. Hey, I did it right. So as Chad said, my name is Frank Metzler. I'm the director of operations for the eastern division of EPCOR Water Arizona. And I appreciate the opportunity to come and talk to you about the work that we do to take care of the customers here in Fountain Hills and make sure that everybody has water. In these times where there are a lot of concerns about the drought and a lot of discussions in the media, it's important for everybody to know that there are a lot of people working hard to make sure that there's water for everyone and that we're doing everything in our power to make sure that we're prepared for the future. So the good news is that I just have one slide. And I'll talk very briefly about what we're doing from an operations perspective to be prepared for any type of cutback on the central Arizona project. And then with that, I'll hand it to Doug and Doug can get into much more detail about where we are with the Colorado River and the reservoirs in the central Arizona project. So last year, right about this time, we came and gave a presentation, and I looked back at my slides the other day and I realized that I threw a whole bunch of numbers on the screen, and I talked about a whole bunch of math. And I realized that I think the message got lost in the math. So this time, I'm going to try to keep it a little simpler and then I'm happy to answer any questions that you might have if you want additional information. So in a nutshell, if you live in the town of Fountain Hills, your potable water when you turn on the tap, comes from one of two sources. It either comes from one of two groundwater wells that we have right here in town, or it comes from the Central Arizona Project. The water from the Central Arizona Project is surface water. It comes up Shea Boulevard TOWN OF FOUNTAIN HILLS Page 11 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 11 of 50 to our Shea surface water treatment plant where we clean it, remove turbidity, and chlorinate it, and then push it out into the system. Now, when we talk about the drought, I've received a lot of phone calls and people ask me, well, what if there is no water in the Central Arizona Project and where would the water come from, and all that sort of thing. The first thing I want you to understand is the two wells that we currently have in production here in Fountain Hills are very good wells. And for about four months out of the year, roughly from December through March, those two wells alone could meet all of the water demand in Fountain Hills if required. We'd have to make some adjustments to one of the wells to treat for arsenic, but that's a very straightforward process. We've done that at many other wells. We know how to do it and we can do that if we need to. In the months of April through November, there are typically periods where the demand in the system from our customers, exceeds the ability of those two wells to produce enough water to take care of all our customers. And if you add up all of that demand between April and November, that volume of water represents about 167 million gallons of Central Arizona Project water. If you convert that into acre feet, that's 512 acre feet. Now, to put that in perspective, 512 acre feet, that might sound like a lot of water. The Town of Fountain Hills Central Arizona Project annual entitlement, the volume of water that you're entitled to from the Central Arizona Project, is 8,909 acre feet. So in other words, the volume of water that exceeds the ability of our current two wells to take care of customers, represents about six percent of Fountain Hills' total CAP entitlement. If you flip that around on its head, what that means is unless there's a cutback on the Central Arizona Project of roughly 90 percent of the total volume, everything's all right. Okay? The bottom line here is that Fountain Hills can sustain a significant CAP reduction and we will still be able to meet system demand for all of our customers without requiring any type of mandatory cutbacks or reductions. So hopefully, that's a little more clear than I was last year. I'm happy to answer any questions or more than happy to hand it over to Doug. FRIEDEL: I think last time you were out, you mentioned that we did have a third well, if we needed to use that, we always had that as a backup as well, right? METZLER: So there are two other wells, and after my presentation last week, I had a TOWN OF FOUNTAIN HILLS Page 12 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 12 of 50 chat with the Fountain Hills sanitary district. And what I learned is that in the years before me, which goes back a long time, those two wells were essentially taken offline because of the recharge of reclaimed water that occurs at the lake there where the fountain is. So those two wells, we can't really use those wells in the future, unless we came to some sort of agreement with the Fountain Hills sanitary district. And I'm fairly certain that those two wells would have to be treated for nitrates and arsenic. So if we get into a situation where we need additional wells, we'll certainly take a look at those and have a discussion with the sanitary district, but it's really up to them whether or not that would be an opportunity for us. MCMAHON: I have a question. The numbers look great here, however, I'd like to know for what length of time do those figures apply to? 100 years, 50 years? I mean it sounds really good but what length of time are we able to provide for ourselves in Fountain Hills without having to go elsewhere? METZLER: Now, that's a fantastic question. And the reality is, when you have wells, every well is different. But when you pump wells for an extended period of time, they experience what's called a cone of depression and so you gradually draw the water down around the well. You essentially lower the water table. So we've never run those wells for an extended period of time, over years, at full volume. I wish I could answer your question directly with how much pumping they could sustain. The reality is, and Doug will talk much more about this. If we were ever to get into a situation where the Central Arizona Project experienced an extended cutback of a very high volume, we would drill additional wells. There's enough groundwater out there to sustain the demands of Fountain Hills, but we would have to drill additional wells and you'd want them not immediately adjacent to one another, so that they don't draw from the aquifer right next to each other; if that makes sense. MAYOR DICKEY: Yes, Councilmember? MAGAZINE: I'm a little puzzled. Do you know why there'd be any question as to whether or not the sanitary district would allow use of Wells 3 and 4? And you said something about drilling more wells if necessary. How do those two relate? METZLER: So my understanding from my time at the Department of Water Resources in Arizona DEQ, is that when you have a facility that recharges reclaimed water back into TOWN OF FOUNTAIN HILLS Page 13 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 13 of 50 the water table, it's important to not try to draw potable water from immediately adjacent to those types of facilities, because there are nitrates, there are nutrients in there, and there are other constituents of concern. You prefer to take your water from the aquifer farther away from where reclaimed water is being recharged. And I'm not sure I understood your second question, sir. MAGAZINE: Well, I was just comparing the two. You said if we had to drill two more wells and I'm saying there are two more wells. Why? You just answered the question. MELTZER: Okay. MAYOR DICKEY: I think we have larger picture probably questions that will be answered on the next segment, because I think we all have the knowledge that Fountain Hills itself is doing good, but we also see everything that's happening around us. So there's messages from all over the place about how low the water is in the lakes and Lake Mead and all this. So I think there is a desire out there to help in any way and a more broad way. So I think we'll talk later, after you're all through, with Grady about some of the things that maybe we could do. Yes, sir. SCHARNOW: A quick question. On the annual CAP entitlement, the 8,909 acre feet, how much of that are you using now in terms of the mix of wells and CAP water? MELTZER: So that was on the slide last year. We typically through the year, right now, are running a blend of about 60 percent CAP water and 40 percent groundwater and there are various reasons for that. The water that we don't take directly and put into the system; we don't lose that water. We recharge that water in other parts of the valley. So the city's not losing credit for the water that it's entitled to -- the town, I'm sorry. Thank you. DUNHAM: Good evening, Mayor, Councilmembers. My name is Doug Dunham, I'm water resources manager for EPCOR. I'm a Phoenix native, but more importantly I'm a 27-year veteran resident of the Town of Fountain Hills. So I put my stakes down here a long time ago and raising kids and here I am. So happy to be with you. I have a history of every time I go out and give a water resources drought speech that it rains, and true to form it rained at my house this morning. So I just need to do this every day and we'll be fine, right. TOWN OF FOUNTAIN HILLS Page 14 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 14 of 50 So just real quick. EPCOR, who we are. We have water systems across Arizona and New Mexico and Texas, as you can see up and down the river. In Mojave County as well as the west valley and down in the southeast valley in San Tan, along with our Rio Verde and Chaparral systems right here. So one of the things I'd like to point out every opportunity I can, is that Arizona's done a really good job at managing our long-term water supplies. It doesn't really always get out in the press. All the detailed work that has gone into making sure the state is well positioned with water supplies. So one of the things that I like to point out is that in 1980 the Groundwater Management Act was passed that created the Arizona Department of Water Resources and put in the legal frame that we have to manage Arizona's water supply under these really strict state laws. One of that key components to that is that the code requires us to have mandatory conservation requirements for every single water-use sector. So whether you're a municipal provider like EPCOR, or you're a farmer, or you're an industrial user, you all have conservation requirements you have to meet. And so when I get asked how much water do we have and how many people can we support here, I always say I don't know, because we have done such a good job of putting in place conservation programs, we use much less water today than we used to. In fact, our peak water use was in 1980 and our current water use today is actually less than what we used in 1957. And that accounts for increased population as well as our increased economic output. So on the graph we have here the blue water drops is our demand across state-wide. The orange people graph line is the population increase and then you can see our economic output and how much that we have grown. So you can do good water management, increase conservation, and still support people and a strong economy. I did it now, all right. I need all the help I can get. All right. So one of the programs I think Frank alluded to it too, that happens on a state- wide basis and EPCOR participates in that, is the underground storage and recovery program. So what we do is we store renewable water supplies underground and then that water is available, it's tracked, it's protected, and then it's available to recover later when you need it. So to date, we have stored across the state over three trillion gallons of water. That equates to the annual demand for the City of Phoenix for 30 years. What we TOWN OF FOUNTAIN HILLS Page 15 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 15 of 50 store is a combination of CAP water, reclaimed water and then, on an annual basis, we restore and recover various surface water. Also, there is a state agency out there that is housed with the Department of Water Resources, called the Arizona Water Banking Authority. They were established in 1996 and their entire mission is to obtain renewable water supplies, store those underground as a backup supply for municipal and industrial users like EPCOR for firming and they also provide some of the backup supplies for some of the travel settlements. To date, they have stored over 3.76 million acre feet of water underground and that water is going to be available, if there are deep cuts on the Central Arizona Project system, that water is available to the MAF contractors as a backup to keep them whole. Part of the effort that goes into this is not just putting it in the ground but how you're going to get it back out. So for the past five years, EPCOR has been a key participant in the RPAG group and that is all the water providers in the valley along with the Central Arizona Project Department of Water Resources and the Water Bank to lay out exactly how much water each water provider is going to get, how much do they need, how do they cover that, and where is that recovery going to happen. And that gets down to system-specific requirements. So for a water system that is based primarily on groundwater, but that uses the credits indirectly, like some of our West Valley systems, the Water Bank simply will provide us underground storage credits to keep the accounting square for those systems. But systems like here in Fountain Hills, where we actually rely on wet water deliveries to our surface water treatment plant, we will be getting wet water deliveries that we recovered, or we may exchange recovered credits for wet deliveries from some other water provider, say for the City of Phoenix for example. So we'll make sure that moving forward, if there are deep cuts on the CAP system, not only will we get credits, but we will be able to have wet water deliveries to our water treatment plant to keep that functioning. So in addition, the Department of Water Resources also has several requirements in place under state law to mandate that water providers like EPCOR do have a drought plan, are able to respond to these types of conditions as they arise. So we have a water system plan that we have to update every five years. Those specifically include analyses on our water supply, our drought preparedness, and then what our water conservations programs TOWN OF FOUNTAIN HILLS Page 16 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 16 of 50 are and how successful we are at meeting those. On an annual basis we have reports that we have to file with the Department as well, and the designations of assured water supply providers out there, like our system here in Fountain Hills, we also have to project out in a five-to-ten-year increments on our ability to support additional growth versus our supply. And then, we also have an annual conservation report that we submit to DWR in addition to the Arizona Corporation Commission. So overall, our water portfolio for EPCOR here in the state is really robust. It's varied with multiple sources of water. So as you can see the majority of our water supply is groundwater, but we do have CAP water which makes up about 13 percent. We have stored water, so that's those other renewable supplies that we've stored for future use. We have other surface water allocations within the state and then we reclaim, recycle all of the wastewater in our wastewater systems and we store and recover that as well for future use. So within EPCOR, we have a constant internal review process that we go through. We are constantly looking at our growth versus demand, versus supply portfolio and then this gets down to also the detailed engineering work that Frank and some of his group does as well, to make sure that we have the appropriate pumps, the right pipe size, those kinds of things in place to support any new growth and the maintenance that goes along with that. We are constantly exploring new water resources and forming regional partnerships and then our conservation programs, interior within our system, make sure that the systems themselves are as efficient as possible. Examples of that are like our valve exercise programs, metering upgrades to make sure that we're controlling and making sure we're not losing water and it's as efficient as possible. Also, we have what we call our consumer facing conservation program. So we're really starting to ramp this up because of the renewed concern of the conditions on the river. We're getting a lot more interest on customers wanting to know how they themselves can save water. So we're really pushing out a lot of new information through on our monthly bills. For those of you who signed up for your text messaging program, we send that out through text as well. And we're pushing out a lot of new information on our website. So available for free of charge from us, are self-audit kits. So it helps you determine if TOWN OF FOUNTAIN HILLS Page 17 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 17 of 50 you've got leaks within your house. We have interior low flow retrofit kits so that's new modern showerheads, those kinds of things that can reduce your water use. Guides on landscaped watering, guides on desert landscaping and how to plant and we provide leak detection assistance. We have a entire customer service switchboard set up. One of their main jobs is to walk through with customers to help determine if they have a leak, where they are and how to try to address those. I've seen those customer service represents spend 45 minutes to an hour on the phone with a customer and trying to help people out. We're rolling out a new enhanced billing system, where you can sign up and if there's a big spike in your water use, on a daily or a weekly basis, you'll get a notification that there's something going on. So if you do have a leak that you don't see, you don't have to wait a month to find out that you've got this increase in your bill. It will alert you right away. And then lastly, we're producing a series of really good detail online tutorials that show customers how they can do some of these maintenance issues on their own. You know, instructions on how to replace a toilet valve, flapper, how to look for other leaks around the house, those kinds of things. And so there's really good how-to videos right there, online. So Frank kind of gave you the daily or annual use numbers. I want to give you the long- term use numbers that's available to Chaparral City. So as Frank mentioned, our CAP allocation is 8,909 acre feet a year. We have demonstrated to the Arizona Department of Water Resources through the assured water supply program, based on a 100-year shared water spike designation, that there is over 8,695 acre feet of groundwater available to us for a 100-year period in this subbasin. Our total designation right now is 9,317 acre feet a year for 100 years. We have, currently, little over -- almost 4,000 acre feet of long-term storage credits that we have stored underground that will be available for us for later recovery. And so our total supply is given together in any one year, is over 21,000 acre feet over that 100-year period. In 2020, our total demand was a little over 6,000 acre feet per year for the entire year. That represents about 28 percent of the total supplies that would be available to us. In 2034 is when our designation expires, that's when we'll have to go back to the Department of Water Resources and get it renewed, and the demand that we projected, TOWN OF FOUNTAIN HILLS Page 18 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 18 of 50 based on growth projections for that year was a little over 9,000 acre feet. So all together, whether you're looking at a short-term or long-term 100-year-plus time frames, we've got a robust redundant water supply here in Fountain Hills. And with that I'll take any questions you may have. MAYOR DICKEY: I'm guessing we have some. Mike? SCHARNOW: Yeah, real quick. Good to see you again, Doug. DUNHAM: Nice to see you. SCHARNOW: And that supply you just rattled off, that includes the state trust land that we annexed a while back, doesn't it? In terms of -- DUNHAM: Yes. So the state trust land doesn't actually have an allocation in and of itself. The state land department has a CAP allocation, but they've never coughed it up with any land. So this is strictly within our allocation that we have right now. MAYOR DICKEY: Alan? MAGAZINE: Thank you. Did I hear correctly that we're using about the same amount of water as in 1957? DUNHAM: We're actually using less water -- MAGAZINE: Less? DUNHAM: -- than we were in 1957. MAGAZINE: And there's enough water for Phoenix for 30 years? DUNHAM: Yes. So the total supplies that had been stored in the underground storage, in recovery program, would equal the annual demands for the City of Phoenix for 30 years. MAGAZINE: I must be missing something, because I'm pretty puzzled. Every week, just about every week in the Republic, I read a story about a potential water shortage crisis. What am I missing? DUNHAM: Well, headline writers like to get your attention, so you read the article. So that's part of it. The other thing is depending on your community, you're going to be in different situations. Some communities have multiple sources that they're going to be able to switch to if there is a severe cutback in the CAP. Other communities are really very dependent on the CAP and they don't have that flexibility. The cutbacks that we've seen already have severely impacted a lot of the agricultural community. So the farmers TOWN OF FOUNTAIN HILLS Page 19 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 19 of 50 in Pinal have already lost all their CAP allocations. So they're scrambling to try to go back to groundwater, to use that. So it's going to be a balance of who has what in their portfolio and how do we deal with that. So it is very concerning, the conditions on the river. It is not something that is just going to go away on its own. It's going to take a lot of work from a lot of corners of the water management world, between the seven basin states and Mexico and the period of reclamation to try to solve this. There are also going to be some trickle-down impacts. So even though we may not be directly impacted on our ability to serve CAP here, with the amount of cutbacks that are happening, we're going to see our costs increase. The cost to maintain the canal, maintain all those pumps, remain the same but there's less units of water, less participants in that, to share those costs to maintain that canal. So our direct costs are going to go up because of that. We're going to see potential impacts if the lake levels continue to drop. That's going to impact their ability to generate electricity. That's going to have impact on power markets across the west. So while the doom and gloom, we're going to dry up and blow away, I do not believe that that is going to happen in the immediate future or in the near future, but there's going to be other impacts that we're going to see. MAGAZINE: I think I may have asked this question the last time you were here. Do you have a public affairs department? DUNHAM: We do. MAGAZINE: Is there any way to get the truth out there? To get the facts out there? We got one reporter in particular who has steeped herself in the Republic on this issue and I have a feeling that based upon what I read, they don't know all the facts and they're not reporting the facts. And I understand that press sometimes wants to report doom and gloom, but they should have the ability to balance it with the facts and let people know where we stand. I don't know if your public affairs department has considered doing something like that, but I think it's really necessary. DUNHAM: Well, we're trying to balance our messaging. One, let's not panic. We're not, you know, the sky is not falling. We're not all going to have to pack up the U-Hauls and move back east of the Mississippi. But at the same time, it is an issue. It is a TOWN OF FOUNTAIN HILLS Page 20 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 20 of 50 growing issue and we need to do all we can as individuals and as a community to enhance conservation as much as possible. So it's a fine line that we're trying to walk between don't worry about it and oh, my God. There is a balance in there. MAGAZINE: I don't want to sound at all critical, but to me it sounds like on the one hand, but on the other hand. That's what Harry Truman said about economists. It's hard for me to digest what you're saying and figure out how to convey to the public what really is going on. We got plenty of water. You said that. 30 years just for Phoenix. So it's plenty of water and so I understand there are other tertiary issues and seems to me therapy could be explained. But the amount of water that we have and have available to us, I really think should be explained to the public. MAYOR DICKEY: What you had, I think a couple of slides ago, would address I think what Councilman was talking about as far as having a public affairs office because you said that you have all that information available. The idea of the state versus where we get our water from, I don't think there's any untruth to it, it's just it's a different story. Here in Fountain Hills we have wells, we have certain population. These numbers just for us in our little enclave are great, right? But what can we do, especially since hardly any of our water's coming from CAP, but can we help with some of the things that you said you have listed and maybe some of the things that are a little bit more personalized to us? Like, I know a lady had written me and I think she had a comment for today, like some of our monuments or monument signs that have grass in front of them. I mean is it a drop in the bucket, is it worth it? Is it a good -- I think it's a good thing to do to show us an example. You know, if you know it's going to rain, don't water at your house. But and Grady and I spoke earlier about putting something together to not only show some of the things we can do, but to also demonstrate some of the things we have done. Which we have low water landscape in place. We use a lot of recycled water thanks to the sanitary district in our golf courses and the parks and all kinds of our watering is done that way. I think Grady, maybe you can explain a little bit about how little we actually use potable water for irrigation. But we would like to get together some kind of an information that shows not only what's really happening, like you're saying. What steps we could take, what steps we already have taken, but granted we have -- there is a lot of water, like you just said. But it's like having a lot in your savings account, but no salary. TOWN OF FOUNTAIN HILLS Page 21 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 21 of 50 We have a lot but we have to address the fact that it's not getting replenished the way it was and that's the lakes and that's the stories that we're hearing. So it is a little bit of both. Grady? MILLER: Yeah. In fact, we don't really irrigate our grass in our parks, with the exception of Fountain Park and Linear Park here in the wintertime. And winter use of water that's a peak time we don't want to really do that if we can avoid it. And we're so fortunate that the sanitary district here also has these wells that they have so that during off times they can basically -- they use the storage and then when there's peak times, they draw down that water for the golf courses and the parks and things like that. So I think we're very fortunate because we do get credit for the sanitary district with what they do, because under the Groundwater Replenishment Act, when you do pull water out of the aquifer, you're supposed to put water back in or you pay money, like almost like a fee to the state. So even though we have two separate entities, they are kind of working in harmony with each other and we're benefitting as a community as a whole. I thought your presentation was really right on. This is the third one I've been to. CAP was doom and gloom because all their water supply is just coming from the Colorado River, the upper and the lower basin. So that was a totally different type of presentation. Another one I had was from the Department of Water Resources which looks at the entire water portfolio of the state and it was much more balanced, just like yours was here today as well. So it's very good that you're doing this because I know our residents have been very concerned about this and I do think we may want to work with you and your company to maybe do some messaging for our residents even in our own publications on maybe conservation methods and all that. Again, we're very fortunate because we don't have residents that have a lot of grass in their yards. We're probably one of the few that I can think of that's mostly all desert landscaping you see. But thank you. You've really hit home some really good points. I did have a question though. Two things that you have on your slide right before this. You're talking about the 100-year designation. So my understanding is when you have any kind of development, like let's say you have a large masterplan development like a largescale subdivision that's going to come in. I understand they are required to bring in a 100-year TOWN OF FOUNTAIN HILLS Page 22 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 22 of 50 water supply, correct? DUNHAM: Yeah. That is correct. The assured water supply program is applicable within all five of the state's active management areas. So we are in the Phoenix AMA here. And so it's based on the definition subdivision from the Department of Real Estate which is six or more lots. You have to show that there's a 100-year water supply, renewable water supply for that subdivision before the plan can be approved and recorded or any building or any lot sales happen. To meet that requirement, EPCOR has obtained a designation for our entire system and so we account for -- under that designation every bit of demand that we have within our system here. So whether it's not just a house, it is the schools, the businesses, the grocery stores, the gas station, and all of the houses. And so yes, we demonstrate that that 100-year renewable supply is in place and one of the things we do under that requirement is, as Frank mentioned, we do use some groundwater but we have to replenish that under the state requirements. So a portion of that CAP allocation that we don't directly deliver to customers, that has a payback to the aquifer to recharge, to account for the groundwater demand to try to maintain the balance in the aquifer that we have here. MILLER: And one last question. On your slide you're talking about the 2034 year designation expires. So what is involved in getting that renewed or what does that really mean? DUNHAM: So what we'll do is, we'll take a look at exactly what our demands are at that point in time and then we'll take a look at what growth potential that we still have within the system, within our CC&R. And then we project that out over a 100-year period. How many more customers are we going to add. How much more demand are we going to grow. And then we have to the Department of Water Resources and say this is our portfolio and these are our projected demands. And right now we have the combination of the two main sources, which would be the CAP allocation as well as the groundwater. And believe it or not, the Fountain Hills subbasin here on this side of the McDowell's is actually a really deep fat well-producing aquifer. So we're doubly blessed with not only the CAP allocation but we're sitting on a really nice aquifer that will be able to supply a robust water source for many, many years. FRIEDEL: Is EPCOR looking to make any significant investment in desalination or any TOWN OF FOUNTAIN HILLS Page 23 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 23 of 50 or other partners? DUNHAM: Yes, we are. One of the -- one of the bills that was passed this last legislative session is kind of a renewed enhanced WIFA, so that's the Water Infrastructure Finance Authority. And that had over a billion dollars set aside for projects within the State of Arizona. Particularly targeted at infrastructure and new water supply enhancement. So we have been talking with several entities including making sure that the governor's office and our legislative leaders know that we're to help. And we have some expertise in this. We have very large pipelines that we currently run in the State of Texas and one of those pipelines is actually a longer distance than it would take to pipe desalinated water up from the Sea of Cortes into the Phoenix metro area. So the technology is there. The expertise is there. And we're going to need to import water into the state. So that's definitely one of the items on the menu that we're going to be pursuing. MAYOR DICKEY: Thank you. Supervisor Galvin had put on a message, I guess they -- I think they voted down a Duid for the Rio Verde and in that newsletter, it said that EPCOR would likely be or already did maybe have a proposal to help those folks out. Can you tell us a little bit about that? DUNHAM: Certainly. So the Arizona Corporation Commission which regulates us as a private utility, has opened a docket to explore the possibility of having a private utility provide the standpipe service that City of Scottsdale has said that they're going to withdraw. We submitted a letter at the request of the commission to express whether we would be interested in that or not. We are interested. We did point out a couple of questions that we would have for the commission to consider. The commission has asked for public comment, public input on that and they've been receiving comments, both written comments and they were going to schedule an open hearing to discuss that. We would be looking for additional water supplies to help support that effort. But we are interested and the decision whether to not to move forward is really going to be up to the corporation commission. MAYOR DICKEY: Thank you. That just sounds like it would -- oh, I'm sorry. Go ahead. Sorry Sharron. GRZYBOWSKI: Well, Mayor you took my question. But I do want to make a comment TOWN OF FOUNTAIN HILLS Page 24 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 24 of 50 that I was playing on our website. I was totally listening to you, I swear. But I was playing on the town website just to see how we are informing our people to Councilman's Magazine's point. It is an important message to make sure we get out. And I do see we've got under the public works section; Bo has been working really hard to try to help people get as informed as possible. We do have a water conservation and an EPCOR water management tab. But you have to know it's under the public works. One, you can update the slide presentation with this one, because this was way more user friendly and intuitive than the other one from last year. Two, I would love to see a link from the main page, the resident's page. I think that would be great. A water conservation or actual facts about your water kind of thing. And totally not a question for you, I just needed to tell Bo before I forgot. Thank you. DUNHAM: And if I may follow-up with that. The leadership program that you guys just launched, one of my partners at EPCOR is going to be teaching a class on specifically centering on water conservation at the home and how we can enhance that. So that will be part of that program. And then we also do constant outreach here in town and this last year we've had a couple of sessions with the community garden to help teach about managing your water use, your plantings and et cetera. And fun fact, about -- industry standard is 60 to 70 percent of household water use is actually outdoor landscape watering. So that's really a place we can concentrate on reducing water demand. MAYOR DICKEY: That's huge. The leadership also, they're go to the sanitary district and learn a lot about their operations and also the sanitary district has a subcommittee with the town working on sodium in the water. So we're all kind of going in the same direction here. Any other questions? Any other questions or comments? Again, we did have people from the community ask questions about whether we can look at some of our grass areas. So we will do that. Thank you so much. We appreciate it very much. DUNHAM: Thank you, Mayor. MAYOR DICKEY: Bye-bye. Our next item is our monthly report by Captain Kratzer of MCSO. Get that all set for you. Thank you. TOWN OF FOUNTAIN HILLS Page 25 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 25 of 50 KRATZER: Good evening, Madam Mayor, members of the council. As always, it's good to be here for the monthly presentation. I'm going to hit on a few items this month. One of them being school safety. So with the start of the school year, we met with the new Fountain Hills superintendent who was the prior Fountain Hills high school principal a couple of years ago, so Dr. J. We've worked with him for years and he's really great to work with and he has a very strong interest in school safety, including his background and his doctorate in that field. So we met with him, our leadership team here in Fountain Hills met with the school superintendent. We talked about some of the rules of the SRO and some of the things that maybe we could expand on with the SRO in the school to maybe help promote school safety. And again, just reminding members of the community that the Town of Fountain Hills contracts with MSCO4 that SRO position and we think that's great. So we're glad to have that position and with some of the staffing shortages that we've had in the last couple of years, that's one position that we've always made sure we staffed just because of the importance of it. But when we met with Dr. J, we talked about some of the concerns he had with school safety and we brought with us, two of our detectives from our counterterrorism unit that -- they handle school threats and school vulnerability assessments. And Dr. J was interested in what they had to say or maybe some of the ways, the advice that they had. And they talked to him about the Alice Training and that's a FBI standard or MSCO and some of the other government entities push for schools and it's a strategy for them for any kind of active shooter that may occur. It's training for staff and it's a protocol for maybe how to approach those situations. And they were interested in having that training. So our detectives from our counterterrorism unit will work with the school superintendent and the school staff to push that training out for them and that will include another vulnerability assessment for the school. Another important thing that -- after some of the recent events Uvalde and the response to that and some of the failures in that response, it was important for the sheriff's office to ensure that our deputies had recent training on response to that. So our SWAT team has worked with some of the other schools and put on some training. In this last weekend half of our staff attended that active shooter training at a school and some scenarios for TOWN OF FOUNTAIN HILLS Page 26 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 26 of 50 those sort of incidents and how that response would look like. Just to ensure if something like that were to happen in the county or in any of the areas, we're responsible for, there's no question as to what that response would look like or what would be expected of the deputy. The other half of our staff should attend that training in the next month or two. Just depending on availability for our SWAT team. But I think that's important and it's great that the school superintendent is interested in making sure that they're shored up in that area. So next I'm going to move to talking about some governor of highway safety, aggressive driver grant money that we were able to utilize here in Fountain Hills. Our Lake Patrol Division is kind of the distributor of that grant money. They mostly utilize that grant money, but if some of the districts request some of those hours, we can get it. So we were pretty aggressive in trying to get some of that grant funding and we were able to get 180 hours of grant money over the last two months. And we utilized that for -- you have to use it for, obviously, traffic enforcement. Any of those violations that you can chalk up just about anything to aggressive driving: speed, stop sign violations, turning violations. So we were able to get 180 of those hours. So that cost no money to the town. That was money that was all grant funded, so there was no cost to the town, none of our personnel hours were lost to this. It was added hours that were given to us. So in that two months that resulted in over 300 traffic stops, in those hours of grant money that we used and over 200 citations. And an area, we put some concentration on some area that's been an issue for a long time. Palisades and Shea, the no right turn on red. And we had 60 stops over the last two months there for that. And so we've talked about some of the challenges with the enforcement there. But the deputies who worked there, we used consistent deputies who found some strategies that worked. Yeah, it worked out pretty well. So we're trying to stay committed to that to decrease the violations there and get some of those violators and education hopefully will curb that over the long haul. And then finally, I want to talk about increase in the staffing to the district here. So Fountain Hills District 7 is what we call it for MCSO. Last time, at the council meeting, I didn't introduce him, but my executive chief was in the room and listened to the study. He's only been my executive chief probably for the last, I want to say three months. The TOWN OF FOUNTAIN HILLS Page 27 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 27 of 50 prior one retired. And since he's been over patrol east, he's over patrol east and west, he's the executive patrol chief, he's really taken a focus on making sure that we're meeting our contract and trying to get to the level of meeting that. So I had five additional deputies assigned that started yesterday. And so we're up to -- we were at 13 over that study we saw and we're up to 18 now. So we're getting there, one more to meet that completely. But that gave us the opportunity to go back to our old staffing model where, because of short staffing we had to adjust that staffing model and now we're back to our five-squad model. It gives me the opportunity again to have a community action squad who can deal with issues that are unique to the town whether it's speeding, direct patrols on speeding, you know, concerns by neighbors, you know, other issues if we've got party house issues, short term rental issues on a Friday night, Saturday night, especially as the weather starts getting nice, they can get special training in that area and go out and address those needs. And just anything that's unique to the town, that's their main function is to address some of those issues. And we haven't had that for a couple of years. So it will be good to have that resource. And especially with having the detectives for the district now centralized. All three of the deputies that are assigned to that squad are also detective certified. So they can work some mid-level cases and help us in that area to make sure some of these cases that are important to the town or time critical for us, that it gets the attention that they deserve. So that's my update. I'm sure there may be questions or comments and will be happy to take those. MAYOR DICKEY: Thank you, Captain. MAGAZINE: Captain, just thank you, because I've seen a real difference in traffic enforcement and particularly on Sorrell. And I've been seeing more and more police cruisers sort of stationing themselves so they could watch the traffic and go after people. So it's really worked. KRATZER: Thank you. And just to add to that. We did really try over the last six months to really emphasize and get more production out of our patrol staff in terms of traffic enforcement. It's been important since I've been here but just trying to get more and more out of them and we've had 120 percent increase in our traffic stops over the last six months. And that's not even counting the grant work. So the deputies are stepping up TOWN OF FOUNTAIN HILLS Page 28 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 28 of 50 and doing the enforcement and trying to be more proactive. And with the addition of the deputies that we had, five more, I would imagine we'd continue to see an increase there. So slow down if you're driving through town. MAYOR DICKEY: Are there questions or comments, anyone? I'm just going to bring this up. When you mentioned the new or the additional folks, and that they may be able to do things that are all the more localized, you know that we had a person that was upset about, you know, someone that has a sign that have things that are, you know, they're not pleasant to read and we had that a while ago with a car that drives around that has a swearword on it and such. And I don't think that the freedom of speech laws have changed too much, but one of the things that we did ask about was, you know, is there a way to tell or any options to let people know that if the police aren't the avenue to do something about that, because they're not technically breaking the law. Would maybe some of these folks be -- get some more, get some knowledge that would say, but here's an option or here's something you could do? I mean the thing with the signs and the swearing, I always wonder about that, because when they talk about, you'll know it when you see it. And some of that seems really offensive and I don't know if there's a line and Aaron I know you're looking at me like -- yeah, I mean. The line is it doesn't -- MAGAZINE: I wish I knew too. MAYOR DICKEY: -- exist, I guess. And you know, freedom of speech. It's obvious and freedom to exist on a public street is your freedom to do so. So I don't know, I guess I'm wondering if there are any other social options or other entities to direct people to, where they might find some relief or at least get answers that satisfy them to know that we're doing, the police are doing everything that they can, but they just can't really do some of those things that people would like. KRATZER: Yeah. I appreciate the question and I understand the frustration that exists with residents. We've had several calls regarding the gentleman you're speaking about with the signs that are in very bad taste and we've talked about some of the challenges with first amendment and freedom of speech and crossing that line. Some of the things, I've reached out to the town prosecutor recently, we're waiting to get together and just talk about maybe some avenues. You know, it gets very touchy and it is very difficult for TOWN OF FOUNTAIN HILLS Page 29 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 29 of 50 law enforcement to take action on something that may be offensive to some people. But there are statutes on the books about public nuisance and trying to make that fit or does it fit, is the question. And trying to find. So we talked about the gentleman with these signs. And we've gotten calls on him. Deputies at times will contact these individuals. Sometimes people, it's how they phrase it. You know, I'm worried about, you know, if the person has water, if they're okay. And deputies will often times, when the call is phrased in a way, that way we're, you know, if it's just hey, this guy has signs that are offensive and I don't think that's okay, deputies then don't, aren't able to contact him because there's no law that's being violated. And we talked about some of the challenges too with some of these folks who don't want contact from law enforcement. When we try to contact them, it's either been a belligerent response or they've walked away saying I didn't do anything wrong and I don't want a contact with you. But there are some things. You know, one of the things that police try to do when we do have contact with some folks who appear to be homeless and maybe have some mental health illnesses are try to offer them some services and see if there's some shelters that they'd be interested in going to. We always try to give them water and start the conversation that way and be approachable. But the minute they don't want that contact anymore, the potential contact, that ends our involvement with them. We'll look into some options. Maybe discuss a little bit more. I know we had talked just briefly about that yesterday and seen if there is something out there. I'm not aware of any social services that someone could call. Messaging might be good in terms of peoples' rights. I don't think it alleviates the frustration that some folks have, because I mean the emails that we saw about having to have those conversations with your children when there is something on those signs, it is very challenging and it's hard to say well, it is what it is. You just have to deal with it, and he can do that. Also we're working with some of the businesses that if these folks are on their property that they have that right to not have them there and we can come and let the person know, hey, you can't be on this property. And if they refuse, it's trespassing. A lot of times they're on public right of way which makes it very challenging. I think that's where you got the look from Aaron on that one. MAYOR DICKEY: Well, and you know, and on a public side of it, we've taken some TOWN OF FOUNTAIN HILLS Page 30 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 30 of 50 actions when it comes to washes and what comes to parks. KRATZER: Right. MAYOR DICKEY: As much as we can without infringing on the enjoyment of these things from our residents. KRATZER: Sure. MAYOR DICKEY: So -- KRATZER: So it's a work in progress and with our Squad 5 deputies who have a little bit more time to be proactive in the community, we'll see if maybe we can find something, a messaging, or something that -- MAYOR DICKEY: If there's any or if there's some other municipality that found something that works. KRATZER: Sure. MAYOR DICKEY: You know, you never know. KRATZER: Okay. MAYOR DICKEY: Thank you. KRATZER: You're welcome. MAYOR DICKEY: Oh, sir. SPELICH: Thank you, Mayor. It didn't go unnoticed that when you said swearing you looked at me. So I would completely lose my ability to communicate if we didn't swear. So just put a sign on the door closed. So Cap, thanks for the update. Would you please, get with Bo and Bob Burns and I think it would be very important for those numbers to be communicated to the public because I think that would deter a lot of people if they know that's a really good number. That's a high number. I had personally called you and told you about the people turning red. KRATZER: Right. SPELICH: I mean it's crazy. So and I knew that being able to set up on that position in order to catch somebody doing it, normally when you see a police officer's car, you make a stop. A complete stop. But when you don't see anybody and the vehicle that you guys are using is a phenomenal vehicle, I had no idea. It was an unmarked, until I got up close enough and then noticed the lights hidden. So I picked up on it right away. But the average citizen will not pick up on it. TOWN OF FOUNTAIN HILLS Page 31 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 31 of 50 KRATZER: You made the right turn. SPELICH: And I immediately hit the brakes. So but anyways, I think it would be very beneficial if you were to publish these numbers because they're very high and I think people would get the message, especially on, I don't know, Facebook or whatever stuff. KRATZER: Yeah. Will do. And we're going to continue to get some of that grant funding so that we can continue that added enforcement as well. So that will hopefully continue for a while. I mean there's so much that's allotted to the SCO but Lake Patrol's been great at giving it to us, especially because we're a contract town and they know the importance of it. SPELICH: And also in the future when, if you have one of your supervisors from headquarters in the meeting, if you could let me know that they're sitting in the meeting because I talked about them like a dirty dog. So I would appreciate a heads-up in the future. Not that I probably would alter what I was saying anyways, but I'm sure the chief left the room and wondered, you know, what exactly, what's with this guy. KRATZER: Maybe the raw feedback was good. SPELICH: But I'm glad that we're -- KRATZER: We got five more deputies. SPELICH: Listen the whole time, and as I always said, it wasn't anything against the men and women or you, but we need to fulfill the obligation. That's 50 percent of our budget and if we're paying for a service, we should get what we pay for. KRATZER: Understood. Thank you. MAYOR DICKEY: All right. Good way to wrap it up there. Thank you. Next we have our call to the public. Do we have any speaker cards? MENDENHALL: Yes, Mayor, we do. First up is Linda Salavitch. MAYOR DICKEY: Hi. Please say just -- not your address, but if you live in Fountain Hills? SALAVITCH: Yes, I am a resident of Fountain Hills. I've lived here for about a year. And I would like to thank the mayor and the council for hearing my concerns this evening, first and foremost. The purpose of this discussion is to make the town council aware that the residents are concerned about the perceived inaction with the town regarding the homelessness concerns in the town. We are concerned that this could grow TOWN OF FOUNTAIN HILLS Page 32 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 32 of 50 into a major problem if left alone. Recent examples of aggression at the gas station, Circle K, and for lack of better terms, some craziness at Kiwanis Park, convince us that proaction versus reaction is the best solution. Please, consider this as a call to action to address the situation so that it does not become a problem as experienced here and elsewhere for this town. We can further discuss public safety, loss of revenue, image, and the pleasure of walks in our beautiful park and elsewhere would be impacted by lack of action on this issue. Thank you for considering this as a fundamental issue of concern for the residents of this town. We hope that this concern is foremost on the minds all elected members and we look forward to positive action from the town on this matter. Thank you very much. MENDENHALL: The next -- well, first of all, I just want to let everyone know that the timer is not working. I've pressed it millions of times, so I'll take minute, I'll let you all know when it's time, you know, your time's up. Okay? All right. Next we have Rick Watts. WATTS: Good evening, Mayor, Vice Mayor, and Councilmembers. My name is Rick Watts. I've been a resident of Fountain Hills for over 33 years. My curiosity was piqued when I got the report or read the report on the community center. I've been a contractor for 40 years and facility maintenance as well. And I've experienced exactly the same thing. So a couple of things that I noted and I think that Allana Buick and Bers did a good job in what they presented to you. The water testing and all of the information that they provided, very good. But they were clear on what they've included and implied things that weren't included. So I wanted to make sure that we were going to talk about things that were addition so we didn't have to go back and refit, redo, refinish surface areas. Some of those things are things like biological growth going further than just the areas that they opened. Until we get their dry patent wall surfaces as measured by a moisture meter. Corrosion where we might have structural integrity issues and so we want to make sure that we do some nondestructive testing so again, we don't have to go back in and open those walls. Fortunately, or coincidentally with EPCOR being here tonight, EPCOR has done a great job of helping identity underground leaks and in this case underground slabs TOWN OF FOUNTAIN HILLS Page 33 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 33 of 50 that were implied again. Not specific but there was an implication either through this contract or someone else, and I don't recall where that there could be underground lakes as well as exfiltration from the sewer system. And EPCOR can do a good job with helping to identify those and then we can get a contractor that can pinpoint the exact location. So that was -- hopefully it's a good omen that they showed up tonight. The other area that is really of concern and again, I've experienced this firsthand, is the roof drains. The roof drains being fouled and not draining properly, you have a structural issue. And on average there's about 5.2 pounds per square foot and when you extrapolate that over the 25,000 square feet, the amount of weight that is in addition -- and our roofs out here are not designed for slow loads or heavy rain loads, but we get them. So it's imperative that we get good drainage off of the system. So in that light I would ask that we review our internal procedures to make sure that we address, because it's maintenance issue. That our staff addresses making sure those roof drains are clear. And finally, in an effort to possibly recover some of the cost that when we finally do put this to bid including some of these -- MENDENHALL: Three minutes. WATTS: -- issues that I address that we look possibly to performance bonds. Arizona mentions insurance on engineers and architects who had been here before, maybe didn't oversee, the implication of the silpans or skill cans; it depends on what part of the country you're from, may have been some oversight and maybe we have a possibility of recourse from either a performance bond or from a architects Arizona missions. MAYOR DICKEY: Thank you. WATTS: -- and I think that does it. MAYOR DICKEY: Oh, sorry. WATTS: I'm out. Thank you. MAYOR DICKEY: Thanks. MENDENHALL: Our next speaker is Larry Meyers. MEYERS: Council, Mayor, Vice Mayor. Commissioner Watts, actually Rick Watts, since he was speaking to you as an individual pretty much is an expert on this. I read this as well as I do have some expertise on it. It troubled me. It looks expensive. I too would like to see some, at least an exploration of performance bonds for the people that over the TOWN OF FOUNTAIN HILLS Page 34 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 34 of 50 years, obviously, there's no one sitting on the dais and probably no one even on the staff when this thing was built. Well, Mike was here -- Mike was around. But I mean in terms of being involved with the construction and everything. So the thing that troubles me is there's organic material, this was written on June the 14th and we've already waited three months to even start talking about it. And organic material grows. Also the roof condition when that roof coating starts to blister, the foam starts to deteriorate underneath and your problem grows exponentially more expensive. So I think last week, while we were discussing what to spend our money on, Councilmember Spelich said we should start looking at things that we have to spend where we absolutely need to spend. This looks like it's going to be a pretty substantial need. I think that any of the things that are maybe wants should be postponed indefinitely and I think you'll probably come to the same conclusion. So thanks for the time. MENDENHALL: That's it for public comment. MAYOR DICKEY: Thank you very much. Our next item is our consent agenda item which is everything except 7D. Can I get a motion, please? GRZYBOWSKI: Move to approve. FRIEDEL: Second. MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Thanks very much. So when we do this, then the item becomes the first item that we're looking at, which is a budget transfer and I believe David Pock will be presenting. POCK: Good evening, Mayor and Council. Christmas came early for me. I got to talk about budget one more time before the retiring members leave. All right. Yeah, put me on three minutes. All right. So I'm not sure if you'd like me just to go through each individual item. If there's questions about specific ones. I do have just a couple of notes in general to say, just to make sure everybody -- MAYOR DICKEY: Just maybe overall, why we do them. They're fairly routine but in this case we have the CARES money coming in. TOWN OF FOUNTAIN HILLS Page 35 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 35 of 50 POCK: Right. Okay. So just a note that none of these transfers move money. It moves the budget authority or the permissions to spend the money that's already in those funds. We're not increasing budget authority; we're just moving it. And then I'll also point out that I'm always open for questions from residents, phone calls, emails, all of my contact information's on the website in the finance page. So if somebody has questions they can definitely reach out. As far as these, we actually have two different sets or two different transfers that are taking place. We have two items for fiscal year '22, which ended June 30th. As we go through the audit process, as we go through closing out the fiscal year records, there are things that come up, invoices that get maybe received in July or August that go back to the prior year that puts certain line items over budget. So we need to go back and make transfers, even those out and that's happened in two cases. The first was in CIP fund for the splash pad. There were some changes required by Maricopa County on surfacing of the splash pad that actually increased the cost by $19,000. So we need to move 19,000 into that project. That is actually probably a little more safe on my part. Since that specific transfer is going from the CIP contingency into a CIP project technically under our implementation policy, we could move that administratively. However, since it is a CIP project, we wanted to make sure that everybody saw it, the council saw it. That that project did increase by that amount. The second one there is 6,000 from our general fund into the vehicle replacement fund for $6,000. That is for increased cost of outfitting the new fire pickup. So that equipment cost went up $6,000. So that's what that one's for. Are there any questions on those fiscal year '22 items? Okay. So fiscal year '23. As you know we do our budget, it's pretty much -- we have a pretty good idea of what the budget's going to be in March and April. However, we don't always get everything exactly right. We did have an engineer's estimate for the panorama phase 2 project. Two weeks ago Council approved the contract for that project and again, this is something just a little bit more transparency on our part. As part of that motion that approved that contract it did authorize the budget transfers that are needed for that, because that contract actually came in slightly more expensive than what we had TOWN OF FOUNTAIN HILLS Page 36 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 36 of 50 budgeted based on the estimate. Just to keep everything all together, we put it in here as well, just so that everybody would see it at the same time. The next two are what you alluded to Mayor, and that's the ARPA money, the American Rescue Plan Act. Last year, fiscal year '22, where you see 4.2 million. This year, fiscal year '23, we were scheduled to receive another 4.2. When we decided back in March and April I didn't want to absolutely say that we were going to get that money. So the entire public safety budget was put in the general fund. Now, that we do have or we did receive that deposit at the beginning of July, we need to move that budget authority from general fund to our special revenue fund. In addition to that, at the September 7th meeting or 2021, that was when Council authorized us to apply and receive the ARPA funds in that motion. It actually delineated then that it would be spent exactly for those items. So it's kind of has been done before but we just wanted to make it a little more public. All right. The last two items. We had 500,000 from general fund to our facilities reserve fund. If you remember, Council authorized $500,000 for facilities reserve in addition to a one million for facilities reserve for the Fountain Park. We matched that 500,000 with our expected budget for that fund for the year. Based on fund balance left over from fiscal year '22, we have about 500,000 in addition to that that could be used for ongoing maintenance and repairs. So that's what this 500,000 would do. It's basically projects that didn't happen last year, that we can do in '23. And then finally, 25,000 general fund to parks administration. Originally the Sunridge Park project was in the CIP fund, but since there's some question as far as when that project, when or if that project's going to be done, I decided it's better to avoid those accounting problems by leaving it in CIP and just expensing those items in fiscal year '23. So that's what that is. MAYOR DICKEY: Thank you. MAGAZINE: The last one, the $25,000, are we still working on that or where are we at with that process? And is it a local party that's doing that work for us? MILLER: It is a landscape architect firm that is trying to work with us and then we'll be working with the neighbors on having what they would like to see in that location. MAGAZINE: Okay. I just want to make sure that, because this has come up before that TOWN OF FOUNTAIN HILLS Page 37 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 37 of 50 we're not jumping the gun on this. The neighbors are definitely all on board with this? MILLER: We have a public outreach. We met last week with some select neighbors that have expressed either interest or concern. And show them what we had initially looked at and they were somewhat pleased with it. We're going to be trying to get a facilitator in to help us with civic engagement process with the neighbors that live in Sunridge, so that I believe is -- when are you thinking that is? LARSEN: End of October, early November. MILLER: So yeah, so the money is appropriated and it is needed for paying the firm to do the work that they've done. MAGAZINE: And that firm, is it a local Fountain Hills firm? Now, the reason I'm asking that question and I know this isn't on the agenda but, you know, we're doing the branding program and a couple of residents reached out to me and said that a local Fountain Hills business had applied for that and for some reason we sent that business down to Tucson. I think, and I've heard Councilman Spelich sit up here and rail about this from time after time, we have to do everything we can to use our local businesses here and if it's a policy that needs to be changed, where we give a little bit more credit for a local business, I want to see something happen along those lines to make sure that we're doing everything we can to support our local businesses here in this town. I think it's just important and I think it's just good business. So I don't know where we are on that. MILLER: I think you've probably have noticed that we have done a lot to reach out to our local businesses. We've actually had a forum here where we invited them. We have done a lot more, I think, outreach to try to inform them of opportunities for bidding. A lot of times we don't get the bids even from our local vendors. As far as this particular one, no, they were not Fountain Hills based, I will tell you that, the landscape firm. As far as the branding project, I think I'll just leave that for the economic development director to give you a memo that explains the process that was engaged with that. MAGAZINE: Okay. MAYOR DICKEY: It's not on the agenda. MILLER: It's not on the agenda, you're right. TOWN OF FOUNTAIN HILLS Page 38 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 38 of 50 MAYOR DICKEY: Yes, sir. MAGAZINE: I was just going to say, if I can't speak to this, just tell me. But, I understand what the Councilman's saying, but when we go out to bid, we put out criteria, we look at their background. There's a real careful analysis before we select someone and often times I even interview the principals. So I mean I understand what you're saying, but I don't think it's a haphazard process. FRIEDEL: And that was not my intent. I didn't say it was haphazard. I just think that we -- and we have done a lot of outreach, Grady, there's no question. I believe that. But I think if we have a local business we should give them some extra credit I think too. It's our policy, look a little harder at it maybe. I don't know. MAYOR DICKEY: Why don't we -- I don't we're supposed to be having this particular conversation right now, Aaron because this isn't on the agenda. I think we can go further, taking this later? ARNSON: Well, I think I agree, number one, with the prospect that -- the Council, it is within our purview to adopt those types of policies, and I also agree Mayor, that we should probably leave that for either Council retreat or an executive session to provide legal advice on what the contours of that are. MAYOR DICKEY: Thank you. Do we have a speaker card on this item, Linda? MENDENHALL: We had an email from Crystal Cavanaugh. Do you wish to speak? CAVANAUGH: No. MAYOR DICKEY: Okay. So that would be if there were any specific questions about any of this. I had no questions. Anybody else? Can I get a motion please? SCHARNOW: I'll move to approve the attached budget transfers as requested. MAGAZINE: Second. MAYOR DICKEY: Thank you. All in favor, please say aye? ALL: Aye. MAYOR DICKEY: Thank you. Thank you, David. Our item 8A is about the special use permit that we had looked at earlier on Ivory and John is going to present. Thank you. WESLEY: Oh, we're already to the next line, we're going to go right through this in a TOWN OF FOUNTAIN HILLS Page 39 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 39 of 50 hurry. Just some quick background again, just to make sure we all know what we're talking about. We have this area up here at Fountain Hills Boulevard and El Pueblo that is plot 106 and the request is for a special use permit for the lot in the southeast corner to allow residential use as part of that development. Here is a aerial image of the same site. A little closer up again, we're talking about this lot in the southeast corner. This particular development has the common parking area to go with the various lots in the subdivision. So here again is a little closer look at the proposed development with the floor area for the office on the first floor, 2,000 square feet and then the rest is some tenant storage and extra garage space. Four units on the upper level require parking. Overall for this development is 17 interior parking spaces, the others are immediately adjacent to it. They're approximately 20 spaces immediately available for development. One of the questions last time was wanting to see the actual floorplan for the upper level apartment, so that's been provided now and it's the four units. Each of those are two- bedroom apartments. This is again still somewhat conceptual plan, although it's getting a lot more specific as we go along, but they will have a follow up site plan review process that we'll go through before they get to a building permit. These are the elevations that we saw before. They've only changed slightly to accommodate the fact that there are the four units instead of the five units in the upper level. Just because that's been one of the issues and thoughts is that architecture is something that we ought to encourage some modifications to as it comes through the site plan review process. Just some quick images for surrounding. You have the residential single family or duplex developments to the west and to the south, that do have a typical residential character within the commercial area. You have some variety in what's in the center. The two across the top are the ones right along El Pueblo on the west side, we have a little bit of a adobe Spanish kind of look to them. There's another building to the north that looks pretty different from the other two and there's also -- we also put in the one across the street that was a charter school, just giving some image of what's in the area. So as we continue to work with the applicant on that possible modifications to the facades, we'll look at what can kind of help with that transition from a residential neighborhood to the west to this commercial center to the east. And fit that character best TOWN OF FOUNTAIN HILLS Page 40 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 40 of 50 we can. So again, coming back, one of the other issues has been the parking and how much parking is or isn't available or will be available for this. Again, you can see the overall site and the parking area that's there. They are proposing to have again the interior parking spaces as well as in those spaces immediately adjacent to it, we feel will adequately meet all their parking requirements so the rest of the parking lot remains available for the other commercial uses in the center. And discussions with the POA for this area, they don't have any significant concerns for the proposed use and its impact on the parking. Long-term they do see the potential if the lots were to develop out to the maximum capacity, there could be issues with the parking lot. If the residents were using the spaces in the parking lot versus the one inside the garage, they could happen to have to park a little further away. There are some potential long-term concerns, but currently they have no particular issues with this. I think I just covered all the things on this slide in those comments. One of the other things that came up at the last council meeting was concern for future uses and some things that could happen in these buildings if it's not used as proposed by the applicant. One of those being the community resident uses for that type of use to happen in the zoning district would require a different special use permit to be applied for an approved. This one that's applied for wouldn't allow those uses, so that would come back to the P&Z and council process with public hearing, public notice before that could occur. Another seems to be any concerns with the drug and detox. Another topic that's currently being worked on with the planning and zoning commission. While we don't specifically provide for those uses today in our zoning code, we are moving forward with that text amendment and what's being looked at the P&Z level is that the uses would go in a C2 and C3 zone, not the CC zone and rezoning would likely have to be done first before any of those types of uses could happen at this location. So again, they're not likely to occur. So staff in planning commission have recommend approval with a maximum of four dwelling units, the dedicated parking in the building for the residents, and P&Z also included dedicated parking next to the building for this use, but the CC&R's for the facility or for this development don't allow for designation of parking spaces. So we TOWN OF FOUNTAIN HILLS Page 41 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 41 of 50 won't be able to do that one quite exactly. That is sort of the intent. That's my presentation. Questions? MAYOR DICKEY: Any questions? MCMAHON: I have a question, hopefully it's not too stupid. But what do you mean by inside parking, designated? You mean covered parking specifically marked for the tenants? WESLEY: So the -- if I can get the mouse back. So these spaces are inside the building. MCMAHON: Right. WESLEY: Will be first for the tenants. MCMAHON: So that will just be parking? WESLEY: Yes. MCMAHON: Okay. WESLEY: So there's six spaces there and four units. So you could -- the ordinance is two spaces per unit, so you then actually have eight spaces, eight people with cars, eight cars for those four units. A couple of them would have to park outside but otherwise the residents are parking inside. MCMAHON: Okay. So is there adequate parking? The bottom line is there adequate parking for this building, considering it's going to be commercial and there'll be designated parking for the owners, tenants, whatever you want to say? WESLEY: Yes. MCMAHON: Okay. Thank you. MAYOR DICKEY: You have a question? SPELICH: Thank you, Mayor. So John, how will the owner, what is the owner's plans on ensuring that residents use the spots that are four the project? Because what I'm concerned about and I didn't hear exactly the positive glowing recommendation of that POA about this project that you're saying they're onboard with. So I'm hearing a little bit -- stuff differently. So how is the owner going to ensure that if this is approved by us that those spots will be utilized by his residents and not taken away from the businesses in the area? WESLEY: And Mayor and Councilman, that's probably a better question for the applicant. He is here. TOWN OF FOUNTAIN HILLS Page 42 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 42 of 50 SPELICH: Bring him up. WESLEY: I had plans to do that. Any other questions for me? FRIEDEL: I have one. WESLEY: Yes. FRIEDEL: I'm sorry. Thank you mayor. You said you're going to work with him on the character of the building for the surrounding area? WESLEY: Yes. FRIEDEL: What exactly does that mean? WESLEY: Well, as we look at the final site plan and the architecture that's proposed for the building right now is a very modern looking building, it's an attractive looking building but I'm not sure it quite fits. I'm not an architect to propose any specific designs. But that will be my pushback on him is what can we do to tweak the design a little bit, to introduce a little more residential feel to the building to help better transition between the two. SPELICH: And is he open to working with us on that? WESLEY: He has been -- again, it might be a better question for him to answer. He's been generally open to working a lot but not to any significant degree. He's not going to come in and totally redesign the exterior, I don't believe. So it will be, I think, minor adjustments. SPELICH: Would the color play into that a little? WESLEY: Color. I think color is probably an easy thing. SPELICH: Okay. MAGAZINE: I think that's what we said about some other building. Do I need to tell you? MAYOR DICKEY: No. MAGAZINE: Okay. MAYOR DICKEY: Before the applicant comes up, if this was just strictly commercial, it would require more parking, correct? WESLEY: Yes. MAYOR DICKEY: And it would not be under cover, necessarily? WESLEY: Correct. TOWN OF FOUNTAIN HILLS Page 43 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 43 of 50 MAYOR DICKEY: So I'm just as baffled by it as I was the first time. The thing that we're being asked for is to have some residential mixture with this commercial building, which if it was just commercial, it would be -- could be two story and it would require more parking and it would not have any necessarily inside parking. And whatever other tenants' parking needs are, why would they be more important than the needs of this applicants? Why wouldn't they have to worry about whether he's parking was -- I don't' really understand this argument at all. But you answered my question about the commercial. So yes, sir. SCHARNOW: Another question. The building upper left, didn't we approve a SUP for that for residential? WESLEY: There was the one -- let's see, let me get back to the -- other way. There it is. This building right -- where's my mouse again. SCHARNOW: The middle one. MAYOR DICKEY: The middle? SCHARNOW: Yes. Just the second one to the north from El Largo. So I don't think there were any objections brought up at that time. It probably passed unanimous. WESLEY: I believe so. But there's one unit, if that makes a difference versus four, but yes it did. MAGAZINE: There's a big difference. Councilman Scharnow brings up the fact that there was no pushback. That was one family living in that unit. Not four units. Not additional parking. One family in that unit. So and I did bring that up at the time. MAYOR DICKEY: Sharron? GRZYBOWSKI: If we look at this as -- go back to where we were. Yeah. Stop. So that footprint there, the way it's approved now, it could be a two -- this is a question, not a statement. So put a question mark at the end. I'm under the impression it could be a two- story building in this exact footprint which includes the six spaces that we have that are parking in there. So we could have, instead of parking and what appears to be maybe two commercial spots or one commercial spot and storage for the people upstairs, we could have two full floors of commercial that requires parking outside of the building, correct? JOHN: Correct, Councilmember. This is an approximately 8,000 square foot lot. So TOWN OF FOUNTAIN HILLS Page 44 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 44 of 50 two floors, 16,000 square feet. One space per 250 square feet, whatever that math turns out to be, could be what would be going on. GRZYBOWSKI: Then my next comment is it's zoned such that I cannot find in my notes, but I think the hours of operation are like 7 a.m. to 11 p.m. WESLEY: Right. GRZYBOWSKI: And it's zoned so that it's heavy use kind of zoning. I don't know, I made a list somewhere, but correct? So we're actually doing ourselves a favor by cutting back on the commercial occupancy is the way I see it? WESLEY: Madam Councilmember, in terms of the amount of parking and some of the activities that could go on, yes. The tradeoff is you've got residents there now parking, potentially 24/7 and not moving as much as a commercial customer might. GRZYBOWSKI: Or I also see it as balancing whether they work downstairs and live upstairs, or maybe they live there and work elsewhere. So they're swopping out spaces for the commercial people park in the day and then the residential people park in the night. We get complaints every day of the week about what a waste the commercial space is that we have. And I think this is the best use of that kind of space, especially he's putting parking in there. So we're even cutting down on what could be residences. So yeah, if we talk to him about the color, I think it will kind of blend in better if you go with the tans or the browns or whatever you guys go with. But I'm in favor of it. MAYOR DICKEY: Thank you. Councilman? MAGAZINE: I want to make sure I understand. By right, without a special use permit, you put two floors of commercial; is that correct? WESLEY: That's correct. MAGAZINE: And how many parking spaces? WESLEY: So again, at the extreme 16,000 square feet and one space for every 250 square feet, so that's four per 1,000. So 16 times four, about 64 spaces. MAGAZINE: It's a lot of spaces. MAYOR DICKEY: Yeah, no kidding. MAGAZINE: And tell me again, I'm sorry. How many spaces are we talking about now under the special use permit? WESLEY: So now with what's being proposed, in terms of the combination of uses on TOWN OF FOUNTAIN HILLS Page 45 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 45 of 50 here, he's required 17 and there are 20 between what's in the building and those immediately adjacent to him. MAGAZINE: Yeah. I think I agree with the Councilwoman, that this sounds to me like the best alternative. MAYOR DICKEY: So parking, the other part we talked about was the design. And if this was a totally commercial building how much input would be required of us for the design? Whether it's modern or whatever? I mean if this as by right, how much would you kind of weigh in on that? WESLEY: Mayor, it would come through just the staff level in terms of that site plan and elevation review and we would take a similar approach. If indeed the council agrees and as they discuss the SUP. That gives us a little more weight in terms of working with the architect on that final design. MAYOR DICKEY: Thank you. Again, this whole thing is very baffling to me. Does anybody have questions that they'd like to ask the applicant? MAGAZINE: Yes. MAYOR DICKEY: Okay. Please, come up sir and then we'll see if there's any cards. Thank you. GURCZAK: John Gurczak, the developer and Fountain Hills resident. So basically the commercial majority of it will be used by myself. You know, the other area I'm not sure if we're going to need it or rent it out or something like that. But the majority of the bottom right, that's all going to be personally used. And you know, really the -- what the square footage of the lot, compare, if you count all of the parking space on the other parking lot too, that's part of this plot, I think by right I estimate about 26 is designated for this lot just on the outside. So you know, this is actually even much less because you're only 11 parking spots are going to be outside. So as far as like the overall project, you know, it's really a down zoning of what could be built by right. And you know, the actual building itself, the same exact building could be built as a two-story like this. And there would be pretty much no input on architecture from staff or anything. MAGAZINE: Mayor? MAYOR DICKEY: Yes, sir. MAGAZINE: Sir, when would you anticipate breaking ground if this is approved? TOWN OF FOUNTAIN HILLS Page 46 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 46 of 50 GURCZAK: Probably sometime in the first quarter. I'm probably the fastest builder in town as far as all that and I get plans done pretty fast. MAGAZINE: The reason I'm asking is that we've had, as you might expect, a lot of request for special use permits. GURCZAK: Yeah. MAGAZINE: And they take a lot of staff time and council time to go over them, deliberate, and so on, and a number of them never come to fruition. GURCZAK: Yeah. Yeah, I mean, I have five private under construction in town right now and probably another five that are starting the next 12 months too. MAGAZINE: You're not going to waste our time? GURCZAK: No. No. I don't like to waste time, plus it's already been about six months we're in this process so -- MAYOR DICKEY: Any other questions for this gentleman? GURCZAK: And you know, if we're able to get approval on this then I would definitely be looking at other lots in that area and that whole center to kind of, try to redevelop over the years and that. MAYOR DICKEY: Thank you. Any other questions? Do you have cards on this? Thank you. MENDENHALL: Yes, Mayor, we do. We have two. Betsy LaVoie. Hopefully I said your name right. LAVOIE: Good evening, Mayor, Vice Mayor, Council, staff. I am a Fountain Hills resident, as you know, since 1978 and I represent the Fountain Hills Chamber of Commerce. Mayor, I'm also baffled. We need housing in Fountain Hills and I, from the Chamber of Commerce, am recommending a mix use taking away commercial. So that tells you how badly we need housing in Fountain Hills. In the past 13 months, Councilmember Magazine, you mentioned the many special use permit projects that have been presented to this council. You've had three in 13 months and similar to the one presented here today and all three were approved, all three were similar to this project. So I also don't understand. This project was questioned for architectural design, although many similar designs in Fountain Hills were approved, for example the gun site apartments were approved and TOWN OF FOUNTAIN HILLS Page 47 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 47 of 50 look lovely. You might not agree, but I think they look lovely and it's a similar design. The project was also suggested for approval by planning and zoning given the final drawings brought the dwellings to four, which it has. So it has accepted that challenge and met with it. Parking was also and continues to be raised, which is interesting because it was also addressed multiple times in a much better fashion than if it were commercial. Not only do the town parking regulations and ordinances, not only does it fit within that but it also fits in with the president of the association for plot 106 for the mixed and shared uses. I am a part of the board of directors for Plot 208, so I know and am very familiar with parking issues and there's plenty of parking in this area, as the president of the association has stated. Additionally, I know you are all very well aware that if this owner-builder-developer decided to change uses of this project or if he sold the property and that new owner decided to change uses, they would have to go through the proper channels, through the Town of Fountain Hills in order to have that zoning or those new uses accepted. So I know a month ago, when this was postponed, it was brought up for a group home, but that is of no consequence for today's decision for a special use permit for a mixed use, because that is not what is before you today. That, if that was ever before you, that would be a decision to be made at that time. But we're focusing on a special use permit, very much like the other three in 13 months that you approved. And this area of town has not been built on or developed in almost 20 years. Multiple sections of our approved general plan quite literally support the approval of this mixed project. And I can share those with you if you'd like, but I'm sure I don't have time. And as a voice of the business community, I do strongly recommend approval today of this special use permit. Our town needs it. Not for the commercial, but for the residential. Thank you. MAYOR DICKEY: Thank you. MAGAZINE: Mayor. Betsy. MAYOR DICKEY: Oh, I guess we have a question here. MAGAZINE: Just to clarify. You said you didn't understand my comment. It might have been three in the last 13 months, but I've been on this council for eight years, and TOWN OF FOUNTAIN HILLS Page 48 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 48 of 50 there are any number of them that were approved and were never built. And I know there's a six month -- I think it's a six-month time limit, is that correct? Before the timer runs out, but I just want to be sure that he's going to build it, that's all. LAVOIE: Absolutely. MAGAZINE: I'm in favor of it. I just want him to build it. LAVOIE: Right. Absolutely. And it's not quite fair though to ask this new developer and compare him to previous projects that he's unrelated to that have asked for extensions when there's huge staff and building material shortages. It's no wonder. I have all the dates and all your six-month extensions, and I know the data and I know that you've had people asking for extensions which is typical and normal in the building world today. MAGAZINE: Yes, it is. But we did not have shortages, five, six, seven, eight years ago. LAVOIE: Correct. MAGAZINE: This is fairly recent. LAVOIE: Which is not his -- MAGAZINE: I understand that. LAVOIE: Right. MAGAZINE: I'm not disagreeing with you. Take a win. Take a win. LAVOIE: No. Thank you. MAYOR DICKEY: Any other questions? No? MENDENHALL: Next is Don Prescott. MAYOR DICKEY: Hi. PRESCOTT: Hi. I'm Don Prescott. I'm a certified financial planner. I'm one of the people who got a special use permit and built a residence. So I live at the building in- between the Sylvester's Wine Bistro and the church and you know, we're happy to have residential neighbors and commercial neighbors to see some life. I run a financial planning office on the first floor. So we're happy to breathe some life. So as a residence it's happy to hear that if any change in use, that means that a potential owner has to come back to the drawing board and come back to the council. Obviously, I'm not a CC&R expert, but my understanding of the CC&R's 4106 will never allow or have dedicated parking spots. That's just what I've gathered, so I just want to make sure the council understands that. Nobody gets a dedicated parking spot there. TOWN OF FOUNTAIN HILLS Page 49 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 49 of 50 So yeah, we're happy to be part of this town and happy to have my business here and to be a resident. So thanks. MAYOR DICKEY: Thank you so much. Any other cards? MENDENHALL: No more cards, Mayor. MAYOR DICKEY: Thank you. Any other questions or comments? Yes, sir. SPELICH: Thank you, Madam Mayor. Let me make this perfectly clear. I am not against development, regardless of what Ms. LaVoie might say to others that get back to me that I am ant-development. I am not anti-development. And there seems to be some pushback up here like we delayed this project. It is my job as an elected official to represent the residents of Fountain Hills. If, in my job duties that I ask for more information or request more things, it's not because I'm trying to put up roadblocks or anything, I'm trying to make an informed decision and make my vote worth something. So this general like, oh, well, you've had other people come up here and get special use permits and everything. That's all well and good. Each thing is taken separately. So the tone up here of this is a no-brainer, why are we delaying this, this shouldn't -- I will never apologize to you, Mayor -- I'm so pissed right now, or anybody else on this council if I ask questions about a project and I want the plans and I want to see what I'm voting on before I make a decision. So if I made anybody up here mad, too bad. MAYOR DICKEY: Any other comments or questions? Can I get a motion, please? SCHARNOW: Yes, ma'am. FRIEDEL: Move to. SCHARNOW: Oh, move to approve SUP22-000001 to allow up to four dwelling units and requiring the parking spaces in the building to be designated for tenant or owner use as approved through the site plan. MAGAZINE: Second. MAYOR DICKEY: Thank you. All in favor please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? Thanks very much. I think -- do we have any discussion or direction to the town manager? MAGAZINE: No. TOWN OF FOUNTAIN HILLS Page 50 of 50 SEPTEMBER 20, 2022 CITY COUNCIL MEETING Page 50 of 50 MAYOR DICKEY: Going to adjourn this and we'll take 10 minutes, and then we'll start with the work study; is that okay. MAGAZINE: Sounds good. MAYOR DICKEY: Okay, motion to adjourn? MAGAZINE: Second. MAYOR DICKEY: Thank you. All in favor? ALL: Aye. (Recess) TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL SEPTEMBER 20, 2022 1. CALL TO ORDER Mayor Dickey called the Work Session of the Fountain Hills Town Council held on September 20, 2022, to order at 7:48 p.m. 2. ROLL CALL Members Present: Mayor Ginny Dickey: Vice Mayor Gerry Friedel; Councilmember David Spelich; Councilmember Sharron Grzybowski; Councilmember Alan Magazine; Councilmember Peggy McMahon; Councilmember Mike Scharnow Members Absent: None Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Two members of the public were present. 3. REGULAR AGENDA A. DISCUSSION AND POSSIBLE DIRECTION: Allana Buick and Bers will be presenting its Preliminary Report related to water/moisture intrusion issues at the Community Center. Eugene Buick, Allana Buick and Bers provided an overview of the water/moisture intrusion issues at the Community Center and answered councils’ questions. 4. ADJOURNMENT Having no further business, Mayor Dickey adjourned the meeting. The Work Session of the Fountain Hills Town Council, held on September 20, 2022, adjourned at 8:48 p.m. TOWN OF FOUNTAIN HILLS _________________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Work Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 20th day of September 2022. I further certify that the meeting was duly called and that a quorum was present. DATED this 18th of October 2022. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS Page 1 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 1 of 25 Post-Production File Town of Fountain Hills September 20, 2022 Work Session Transcription Provided By: eScribers, L.L.C. * * * * * Transcription is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings. * * * * * TOWN OF FOUNTAIN HILLS Page 2 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 2 of 25 MAYOR DICKEY: Thank you. We'll call this special work session to order and I don't think we need a roll call right now and we'll just get going. Thank you. MILLER: Thank you, Mayor and Council. We're before you tonight with a presentation from a firm that was engaged to help us try to identify the sources of some of the issues that we've been having with water intrusion in the community center. Tonight you're going to see the results of some of their testing and then also they're going to share with us their, what would be called near-term and longer term kind of solutions to try to address the issues. I'm going to turn it over to our public works director; he has a few more words and then he's going to introduce our presenter tonight who is Gene -- WELDY: Eugene Allana (sic). MILLER: Thank you. With that I'll turn it over to you. UNIDENTIFIED SPEAKER: It's late. WELDY: Eugene Buick. Excuse me. That's right. It's Allana Buick and Bers is the firm. Thank you, Grady. Madam Mayor, Vice Mayor, Councilmembers. Over the last several months the town manager, myself, and the facility supervisor has had an opportunity to have numerous discussions and do what we could to make immediate and/or temporary changes to the deficiencies at the community center and just a little bit of history lesson in regard to some of the comments that we heard tonight. I am fortunate enough to have spent almost 16 years in this organization. The first several of those in the engineering department and sat in on several meetings with the only other two public works directors that have held the position, in regard to discussing the town's buildings. And we have three of them here that are just under 90,000 square feet and roughly about 20 years old. There was a considerable amount of discussion related to the community center in regard to the moisture barrier that may or may not have been installed as part of the original construction of that building. Throughout the years carpeting and flooring repairs all addressed that issue in regard to moisture coming up from the slab. In fact, prior to us engaging the mayor and council for the most recent renovations for that facility, the town manager, myself and the facilities manager each looked at professional opinions on the type of adhesive that would be required to combat TOWN OF FOUNTAIN HILLS Page 3 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 3 of 25 and help support the flooring. Not only the ceramic but the carpeting and luxury vinyl tile again related to what we knew and what we had been told in the reports that we had read. It is very, very difficult to explain to you how frustrated and angered and surprised we were that as construction was underway, to make that building refreshed and a better place for the community to enjoy, when it started raining water was coming in from places that we could not imagine. From not only the doors and the windows, but the walls. And I will simply state this clearly, I will not assign blame for those deficiencies once I knew about it to anybody else. I will also state that immediately when we recognized these issues we worked with the town manager and other professionals to address what we could at that time with immediate action. After that we began to search. And when I say we, primarily myself, trying to see if we had a contract that was existing with a firm, with expertise that would be able to provide some sort of guidance. I basically exhausted what we had in regard to existing contracts and again, to reduce the time necessary the facility supervisor noted that at his previous employment there was a firm that specialized in this very thing. I didn't immediately agree to that. We did have conversation. I had conversation with the town manager, did a little bit of research and discovered in fact this firm is qualified for exactly the challenges that we're facing in regard to the construction deficiencies. That firm is going to be giving you, or at least as representative from there, is going to be giving you an update of their findings tonight. But there are a couple of things prior to my introduction to him, and I'll use his correct last name this time. That immediately after we were made aware, we began to take steps to seal areas. One of the in fact, unused doors for one of the classrooms, we used a popular television product that you can spray on a screen door anything else and it stops it from leaking and you can turn it into a boat. I will say that their tape and their spray minimized the intrusion of water through that door. However, ponding on the west side of the building still allows it to enter through there. That one is somewhat of a challenge. We also, during construction, the facility supervisor brought in a door specialty company to work on, adjust, and/or replace the thresholds. As part of that project we did know that water was running in the main front door and we took action and addressed that as part of that TOWN OF FOUNTAIN HILLS Page 4 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 4 of 25 project but with a separate funding mechanism to put new concrete in there and a new drainage system to move that water away. Again, we have not just sat around and waited for somebody to do something. We have actually been doing something all along and I'd like to remind and I know the council is aware of this. But we have one facilities manager and we have one plant mechanic, is what I refer to him as. He's a facilities maintenance guy and he takes care of all three of these buildings and often times all you'll see of this individual are his feet or from his knees down, because he's standing on a ladder in one of the ceilings in one of our buildings addressing some of the concerns. Some of the concerns that we have are the rain gutters at the community center that come down through the walls. They're referred to as a no hub system. Town staff, along with the support of contractors has been addressing those no hubs. We also -- that individual, Paul is his name, noted that while he was in several of the ceilings he discovered what he referred to as turkey pans. Who are aluminum pans that the previous facilities and plant mechanic put in areas of, not only town hall, but the community center because there was a leak that they simply could not identify its origin. Either coming from condensing pipes or drainage structures or roof leaks. Each one of those that have ben discovered created a stained tile. To eliminate that, they put in this drain pan and while they continue to work towards finding that leak, they simply dumped the drain pan. As repairs have been made by staff and contractors some of this piping has been moved. As a result of that, there is a leak a little bit further down the line and that happens and what that does is it creates an additional stained tile. We continue to remove and replace the tiles and take other measures, including most recently, at the direction of the town manager, securing two very large humidifiers. And I'd like to report that on average they're pulling in about three gallons of water every four hours apiece. The town manager had some concerns in regard to the HVAC system. We have done a back check on that to determine whether or not anything was changed or manipulated by our new contractor. We find no evidence of that. So an explanation, if I could offer it, is that as of recent the humidity has been higher all the way around. So we recognize and understand the challenges that we are facing. The town manager, myself, and Rachael, who's not here tonight, the community services TOWN OF FOUNTAIN HILLS Page 5 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 5 of 25 director and the facilities manager had we known about all of the other construction deficiencies we would not have come to the council with just carpet and other flooring and paint and furnishings. We would have put together a much, much larger project. Now, what we're going to do is work, not only with this professional firm, but we are working to secure another specialty firm to deal with what's described as organic matter. In relation to that, the stuff that was found on the sheetrock as it was opened for this assessment, that sheetrock was disposed of. While we do not have the individual here that helped to repair and do some treatment of that, we do know that some of it in regard to the organic matter was either disposed of or sprayed with bleach and water at that time. In order to get an assessment of that, we need a firm and there are lots of firms out there that are eager to run out here and provide their services but very similar to the forensic architectural assessment we need a specialty firm that primarily does their assessments on large commercial buildings with a relatively large influx of residents, people that use it primarily six or seven days a week. With that said, if you have any questions for me related to the rambling that I just did, I will certainly do my best to answer them and then I will introduce the professional engineer. SPELICH: Thank you, Mayor. I think what should be at the very front of all of this, and I can't even believe I'm saying this, because I'm so against studies or spending money on any of this stuff. We need to get someone in there, some firm in there that can immediately come and test the air quality and everything else. We have full-time employees that are in that building breathing all this stuff. We also have seniors who could be immune compromised and have underlying medical conditions that could be exacerbated by attending anything in the community center. So I hope part of this plan is to immediately have an air quality test done to make sure, because I personally am speaking from experience, I had a leak in my home and black mold was involved. It is very serious, very serious. And it grows like crazy. So I think at the very front of this, before we go onto -- and believe me, I've got plenty to say about this report and everything. But I believe that before we get rolling we need a firm to come in there and test the air quality to give the employees of the building assurance that they're not going to get sick or breathe in things that could be harmful and more importantly the residents, TOWN OF FOUNTAIN HILLS Page 6 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 6 of 25 especially seniors who are going in there. Because I was in there, it smells horrible and I'm worried. WELDY: Madam Mayor, Councilmember, we absolutely agree. We are in the process of procuring said specialty company. Again, we want them to be vetted and be able to meet the needs that we have and that will follow through with an architectural firm that is a specialist in this type of construction deficiency as well. FRIEDEL: Justin, I'm not an engineer, but can those no hubs be sealed off and have that water rerouted to the outside of that building? I think that this is a major part of our problem with this building. I don't know what that would cost, but I'm just asking the question, because if that water is running down the inside of our building and we have any kind of leaks in there -- so that's the first comment I want to make. And this just started -- don't we get rain every year? Is this just something we're just now noticing? I mean what happened five years ago or seven years ago? So again, I'm not asking for an answer, but I'm just throwing it out there because this is -- this didn't just happen overnight. And so we cut out sheetrock. What about insulation? What about the framing? Was any of that compromised? Did we treat any of that before we put sheetrock back on the wall? I don't know the answer to that. And then I had air test written down on my list of things here as well, too. So I know you're on top of that, but those other ones, I don't know if we have answers for that or if that's part of our proposal or what. But I'm thinking that those no hubs are a problem; and maybe I'm wrong. WELDY: Madam Mayor, Vice Mayor, rerouting the roof drains is going to be very expensive because they currently enter the building at numerous locations and that is because of the architecture of the building. It's a flat top. In order to push that water off to one side or the other, you have to build that up and create that flow. That is certainly a challenge. There are systems, modern systems that function and with the proper maintenance last for years and years. And not all of these no hubs and these roof drains are failing, just some of them at some locations. And keep in mind that again, the single individual we have along with the support of some contractors does a pretty good job of keeping the majority of this stuff operating without any issue. In regard to the latter part of your statement, most likely and I cannot speak for the previous facility supervisors, when there was rain and we discovered this after a TOWN OF FOUNTAIN HILLS Page 7 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 7 of 25 nighttime, the water flowed freely, very, very thinly out into areas near the middle of the floor. And if you didn't see the path from it in the construction dust, you would have thought it would have originated in the center of the floor. Some of their conclusions in regard to the vapor barrier were likely a result of that. The rain -- when it rains, it enters and travels either underneath or through the flooring to the lowest point on the on grade slab. The reason we noticed it is because there was no flooring and no trims and so you could clearly see the path that it had taken after and during -- or during and after the event. MAYOR DICKEY: Grady? MILLER: Mayor, Council. Very good points and comments and definitely we are as the public works director indicated, we are looking at companies that will help us identify if this is an issue, they'll be doing testing. But what I'd like to do, we're speculating up here at dais before we've even had the presentation. So I'm going to have the -- Gene come up and give his presentation. He has some cutouts showing photographs of what they did and what they've observed. And so he will be able to answer, I think, your questions Vice Mayor that you had about insulation and drywall and what they saw. WELDY: With that said, Madam Mayor, I would like to introduce the professional engineer from Buick and Bers. His name is Eugene Buick and he is going to do tonight's presentation. MAYOR DICKEY: Thank you. BUICK: Good evening, Mayor, Vice Mayor, Councilmen, Grady. My name is Gene Buick. I'm with Allana Buick and Bers. We are a national firm that specializes in the diagnosis and repair of buildings that have similar problems such as yours. Tonight, I will review our findings and be happy to answer any questions. So here's you community center. You have cement block walls. You have metal framing. You have a synthetic stucco finish and of course the windows. The storefront windows and the punch windows as well. And portion of the building is surrounded by concrete hardscape. And the other is softscape. So here's an overall view. And also you have your roof which is a firm roof. TOWN OF FOUNTAIN HILLS Page 8 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 8 of 25 Building was built approximately 2001 and it's about 25,000 square feet. And as referenced earlier here, there was an interior remodel around October 2021. So we were contacted by the Town of Fountain Hills in February of 2022. A contract was issued to us in March of 2022 and immediately thereafter we prepared a leak testing protocol. You know, when we were called out to study this, typically what we'll do is we'll do a leak testing protocol which test windows, test concrete. We're trying to diagnose what the issues are and what they could be and is it one issue, is it two issues, is it three issues. On May 24th and May 25th we surveyed the community center and performed visual observations, water testing, and some limited destructive testing through the assistance of a contractor. And then we issued a report in June of 2022. So here's some overall photos. I think the one thing that wasn't mentioned. If you look on the left, there's this sort of metallic tongue that's sticking out. That's a roof drain outlet. And I guess recently, within the last year or so there's actually some improvements made on the site where these wells were installed with drains to direct excessive amount of moisture buildup around the building at this location to direct it into the storm drain. We also have photos of storefront windows and concrete. Here's some more overall views. And most of these areas are experiencing leakage as a result of both window issues, door issues, and then issues with the exterior concrete slab and the hardscape. So here's a snapshot of the testing locations. We tested over 20 locations. We water tested 24 and all 24 leaked. So we batted 1,000, so they say. With the windows, which we'll talk in -- which I'll describe. So the windows are leaking, but why are they leaking? And what we're going to do is go into what all the failed components are. So with the storefront windows, big picture obviously they're failing to manage the water. The water is entering into the building. You have vertical mullions that aren't resting on sill cans. You have a lack of sill cans. The window product lacked weep provisions. We have window mullions, so basically parts and pieces of this window is at least dry. There isn't any sealant to help resist water from coming in. All you have are these rubber gaskets that go around the window. TOWN OF FOUNTAIN HILLS Page 9 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 9 of 25 You also have gaskets that either shrunk or short. We also see disported sealants. That's also another path for moisture intrusion. We do see some IGU failures. So if you've ever seen in your own home where there's a little fogging or something of your glass, that's an IGU failure. It's two pieces of glass with a seal and from time to time those do fail. But the other thing that's common around the windows, you have hardscape or slabs that are reverse sloped. So not only do you have the window issues, it's compounded by the fact that you have water resting against the window. So you have sort of this dam or pool of water that's building up. So typically what we did was, we had our spray rack and the spray rack what does it do? It sprays water on the window to see, you know, if the window's leaking. Of course through our testing and I'll show you some photos, we did see water come in. We didn't use negative pressure. That's often times a second step and basically we had a static test which -- you spray the window at about 24 PSI and we watched the inside and see what happens. So if you recall from chemistry class, we all had our litmus paper and it changes colors, and that's what we use when we're testing to kind of give you a good photographic evidence of moisture. And so what we have here is -- and this is probably after a minute or so, water pouring in. And so water's pooling around the windows. They're also pooling through the bottom of the windows. We have frame intersections that are leaking. We could see there's just many areas that are failing and allowing water in. With the doors, we also tested the doors. Again, reverse slope, concrete hardscape. Perimeter seals that are failing. There's no pan flashings. There's glazing pockets. The glass is allowing water to come in where it's kissing the frame and we do see daylight at the doorjamb assemblies. That's another opportunity for wind-driven rain to come in. So here's our trusty level and you could see the blue arrow is denoting that there's reverse slope. So if you have any moisture building up it then flows into the interior. Here's the double door leak. We see voids and again, you could see this pool of water that's flowing into the interior. And you could see how far it goes, right? It's just a river that goes deep inside the building and I think part of that, again, is the slope of the slab and the hardscape. TOWN OF FOUNTAIN HILLS Page 10 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 10 of 25 As far as the wall cavities, part of our testing and observations was to understand is water getting into the wall cavity. And so we could see here when some of the drywall was removed, we see that there is moisture coming in and what I'm pointing out here to the right, there are open seals, a lack of flashings, and voids where the door integrates with the window wall assembly. So we have moisture intrusion into these areas. And frankly, you wouldn't know that that was happening without removing the drywall. No one goes in normally to remove drywall to look for leaks, but part of our scope is to perform these biopsies and see if there is any damage and any moisture entering into the cavity. Here is some glazing leaks. More leaks through the thresholds. As far as exterior observations there are portions of the slab, this is the structural slab that extend beyond the footprint of the window. This slab and it's through shrinkage, a little bit of curling. It sort of slopes back into the interior. And so what you have is a pooling effect of water at the base of the window. So you have issues with seals and now we have a pool of water building up against the window. Here's a photo, we took our little ruler and noted that there were some openings in the sealant. Again, another area for water to get in. Here's some short gaskets. We also see pooling water adjacent to the doors and walls. I'm going deep inside areas that are fairly protected. There's some damage to the gypsum board. You could see that. Again, we see a little bit of corrosion on the rusted track. And we see the water damage from the presence of water. Any questions? MCMAHON: I have a question. BUICK: Yeah. MCMAHON: Is this all because you pulled the drywall and looked at it? BUICK: Is this -- MCMAHON: All the pictures and stuff are based on -- BUICK: Correct. I mean -- MCMAHON: Okay. BUICK: Yes, there was destructive testing to remove drywall so we could observe the TOWN OF FOUNTAIN HILLS Page 11 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 11 of 25 condition of the interior. And part of this helps us develop an initial program for the building repair. Of course, I mean, we'll get into the scope of repair but we have to understand what the structure and the elements look like because you can't exclude these areas. These would have to be part of a repair project. So we need to know what that condition is. MAYOR DICKEY: Council? MAGAZINE: Yeah, just to follow-up on an earlier question. About three years ago we had something like a 500-year storm. I mean it was really, really bad. Is it possible this is just showing up now? BUICK: The difficult part is a lot of these conditions are concealed. So you may not necessarily see it manifest on the outside of the wall. And certainly I think it's gone for a while, given the damage and the corrosion we see. You won't see corrosion instantaneously over a one-year period necessarily. So I'm sure it's been some time that it's been experiencing it. Certainly having a 500-year storm, doesn't help. It may exacerbate the situation. MAGAZINE: You showed photos with some ponding water. I assumed that happened before? BUICK: Sure. MAYOR DICKEY: The other part that you mentioned was years ago, knowing that there was something but it -- we thought it was coming from the middle. It's kind of like what you were saying. Because I remember the discussion, I don't know, a long time ago, right, with previous folks and that that's what they thought and they got the sealer and did things that they could do. But it wasn't the root, I guess, is what you're saying. BUICK: You know, this isn't the first time. You have a leak. You rely on certain experts. They tell you, oh, the floor is leaking, and maybe it was. But sometimes not all the issues are identified. And so now you're learning after you've remodeled it, you do have these sloping issues. You have these window issues. And that happens. MAYOR DICKEY: Well Mr. Watts had said, kind of mentioned the word implied. But it sounds like -- I mean it sounds like you're saying exactly. Are you implying something with this or are you saying it straight out? BUICK: I'm saying straight out. There's -- TOWN OF FOUNTAIN HILLS Page 12 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 12 of 25 MAYOR DICKEY: I mean he -- BUICK: -- leak issues, there's water issues, and there's damage issues. That -- MAYOR DICKEY: You heard what he said, right? So I was trying to figure out what -- is there something that I'm missing that is beyond this report because it seems pretty straightforward? Thanks. BUICK: Well, what do we do? You have damage, you have leaky windows, you have leaky doors. There's sort of two buckets here. What can we do today? And what is the long-term plan for this building. So in terms of near-term solutions, and we've done this on buildings, 20 years plus, 30 years plus. One method of reducing or minimizing or eliminating the intrusion of water at the windows is to wet seal them. Wet sealing is an alternative to replacing them in the immediate term. You apply a silicone sealant, UV resistant, and you have to seal all the joinery. All the areas where the water can come in, so you can stop that. So you don't have that pooling and flooding on the windows. So that's one option. Also let's repair the perimeter window sealant where the window meets the stucco walls. We had a ruler we inserted between the stucco and the window, so there's some delamination there that needs to be addressed. Let's inspect the door thresholds and fully embed those in sealant. Usually, what we see that happens in the construction world, someone puts a couple of beads of sealant and calls it a day. Well, you really have to coat the underside of that threshold and set it in a full bed of sealant so water doesn't get in-between the threshold and the slab. Another option is coating the reverse slope sills. And I'll just put here an item number 8. In addition to coating the reverse slope sills, before you even coat them, and provided that the rebar has enough concrete cover, you could consider grinding those extensions beyond the windows, so now it slopes positively away from the building. And that certainly an option. You see grinding down on sidewalks when the tree branch -- the roots lift up the sidewalk. So you could potentially grind that away. And then there's also some targeted repairs where you could cut out and slice portions of the hardscape, introduce a trench lane that then allows water to flow into the softscape and to nearby drains. So there are some, I would say effective immediate near-term solutions that you could implement to help reduce the amount of water that's entering into the building. TOWN OF FOUNTAIN HILLS Page 13 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 13 of 25 FRIEDEL: I have a question. BUICK: Sure. MAYOR DICKEY: Yes. FRIEDEL: That hard concrete that's sloped toward the building. Was there any evidence that you saw of that actually settling down. Or was that just -- is that just the way it was -- BUICK: I believe there was a survey done that maybe the building itself was -- was it the building or the hardscape? The building itself was installed, I think, a little too low by 2/10s of a foot. So there was some construction issues. But I think some of this reverse slope is actually a function of potentially of the concrete curling just a hair bit and pulling back. One solution I had mentioned was this trench drain idea, and I just sort of cartooned in a trench drain. So you see the slope. So if we can grind a little bit of the curb, could we introduce a trench drain to help manage this water and then go into the landscaping to nearby drain? I think it's an option to consider. Not cheap, but it's an effective way of addressing some of the water that's building up against the building. MAYOR DICKEY: Council? MAGAZINE: Yeah. A question. Can we go back to that other, the slide just before this? BUICK: Sure. MAGAZINE: If we were to undertake the near-term solutions, but then we have to go full bore in another year, two, three, are we wasting a lot of money? Is a lot of this just basically, pardon me, sticking the finger in the dyke until we do something permanent? BUICK: So I mean that's always a concern. I mean the question you have to ask yourself can we do something effective today to help reduce that moisture. Because we all know you have to hire an architect. You have to hire the hygienist. You have to draw the drawings. You have to go to permit and plan check. You have to bid it out. How many years pass by? Two years? Three years? So I think, yeah, you will spend some money doing these repairs. You have to evaluate the cost, maybe get a bid for this. I understand what that is, but I don't think it's necessarily a waste. I think we jut need to look at it more in a targeted fashion, is there a way to do something today to get you by for the next three years. TOWN OF FOUNTAIN HILLS Page 14 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 14 of 25 MAGAZINE: I guess I'm trying to make myself clear, because I don't really understand it all. But get us by, okay. For two, three years. Three years comes along, do we lose anything? I mean of all these things long-lasting or they have to be done over again? Wet sealing of windows. If we've got to replace windows, wet sealing doesn't mean anything. BUICK: Well, sure it does. Today it does because you stopped the leak now. MAGAZINE: Right. BUICK: But you have -- it's a business decision. We deal with clients all the time. Someone will wet seal it; someone will replace it. Replacing is a lot more expensive than wet sealing. But in the study of these longer term solutions, yeah, you may end up replacing the windows. And therefore you did consume some money to seal them temporarily that you can't use. MAYOR DICKEY: And to your point, some of this is a business decision because you talk about what season is it and what's the use of the building and how much is the building going to be sort of uninhabitable versus do you do something like this. So I think it kind of goes into more than just the cost to what's the use of and would this be done really, really quickly to address some of the things that Councilmember and Vice Mayor had talked about health-wise. And is this something we want to do right away. Grady? MILLER: I was just going to say like the trench drain, I see that as being an overall investment because I think it's going to be something that's going to have to be done regardless. We're showing it's near-term because it's something that I understand we can do and get started on it now. Longer term is the next 12 to 24 months after next fiscal year. So trying to get this started here and trying to get it going is going to be an investment, I think for the long-term. BUICK: Let's talk about the long-term recommendations. So first part is to retain a design firm experienced in the report of exterior envelopes. Get a local architect that's familiar with the city, understands the needs. We really have to get this program correctly. What's proposed right now is to think about the replacement of the window and door assemblies with new. Install new waterproofing and sheet metal flashings beneath the assemblies. There also have to be targeted repair of the exterior cladding. TOWN OF FOUNTAIN HILLS Page 15 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 15 of 25 The synthetic stucco. So it's not easy to pull out a window. You have to break out the stucco around the perimeter. You have to reflash it. You're going to have to patch it and then we have to think about the patch. How well is that patch going to hold up. So we have to look at coatings and maybe a reskinning of the façade. So it's very complicated and it's costly. But we have to think through all of these things so that you don't come back here in five years. Don't come back here in 10 years. Of course repairs to interior finishes. So in any project that's had water intrusion, you have to have allowances and unit prices to replace framing that's rusted. You have to have allowances to replace the drywall. That all has to be in the plan. And then of course, the replacement of portion of the exterior hardscape and installation of additional drainage. Again, that could happen now or that may happen three years from now. Again, it's part of your business plan, business decision for improving this building. In terms of a schedule, I had a discussion with Grady and the team. Certainly the near- term solutions, you could look at implementing. Some can start sooner than others, but you're looking at a period of between October 2022 and June 2023. Part of that will require procurement of a contractor and so that does take a little time. And development of these solutions. MAYOR DICKEY: We could do that air quality evaluation before that, right? That's kind of the only immediate like worry I would say. BUICK: Yes. FRIEDEL: Can I make a couple of comments? MAYOR DICKEY: Yeah, sure. FRIEDEL: We've got a guy in our planning and zoning I think we really need to tap into. That's Rick Watts. He's dealt with a lot of this stuff. He knows people that can get us the help I think. So that would be the first thing that I would suggest. And then I didn't see anything mentioned in here about the roof yet, maybe you haven't gotten to it. But maybe there's a concern about that roof. And then the thing that struck me as well is, 24 tests, 24 leaks. We are paying an awful lot of money to run this building in energy cost that hasn't even been brought up. And I'm willing to bet you that if we do replace windows, if we have to at some point, that we're going to see a substantial savings in TOWN OF FOUNTAIN HILLS Page 16 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 16 of 25 energy cost alone because if we've got those kinds of leaks, that meter is just running nonstop. BUICK: Yeah. As far as the roof concern, it's in our report. The primary discussion points here are the windows, the doors. That's sort of the lions share of the issue. But certainly the roof, we've provided some recommendations and my understanding is the team's looking at getting a repair quote to recoat, refinish the roof and address the leaking penetrations and those associated components. MAYOR DICKEY: Thank you. So Grady, what do you want from us? MILLER: Money. MAYOR DICKEY: I mean besides that. MILLER: So we're going to be fine tuning. This isn't the end of this discussion. So we're going to be doing two things. As was mentioned earlier we're going to be training to have the building evaluated for the interior for the air quality and if there's any issues perhaps with mold and mildew, and so you'll be made aware of that. But we also are going to put together a plan as to what these near-term recommendations will be and then the longer term ones. So we need to probably pull in another firm that just looks at the architectural recommendations here and what those are going to cost. Because that was not part of their scope here to do that. So there's more yet to come to you and we will be doing that. I would probably tell you that we'll likely put together a capital improvement project for next fiscal year, at least as a placeholder while we're trying to develop what those costs might be. Again, I really want to evaluate what these near-term solutions might be because they might really just take care of -- I mean the storefront windows, my understanding is that's completely custom that we have there now. They're not off-the-shelf kind of windows that you just can buy. So that's going to be very costly and then impacts of replacing windows to the interior finishes, as you heard, can be quite expensive. So again, when I asked you about the sealant, I was told you believe that that could be a 25 to 30 year, if it's done appropriately, right? On the windows? BUICK: Depending how the sealant's applied. Silicone sealants have a very long lasting TOWN OF FOUNTAIN HILLS Page 17 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 17 of 25 life. They're UV resistant. If they at the proper dimension, the proper thickness, proper adhesion to the windows, it cane last a very long time if it's done properly. MILLER: So in answer, that's the track we're on right now. MAYOR DICKEY: The other thing is if we are going to replace them then you end up probably taking a really long time to, not only find them, but to get them. So I don't know that we would want to be leaking all that time either. BUICK: The other thing to consider with replacement of windows, you also don't want to have a quilt patch network of windows. So if you replace the storefronts, then the question becomes well, what about the other windows? You know the punch windows that may or may not be leaking. So we have to consider all those. MAGAZINE: Instead of near-term or long-term, would it make sense to mix and match? For example, are there near-term things and maybe some long-term things that can be put in a little package? I don't know if that makes sense. Or do one -- or does the near-term obviate the need for some of the long-term? BUICK: I think it would still be two different packages because it would take a longer period of time to develop the drawing and specifications for the long-term solutions. Part of it's going to be an energy analysis to your point. You know, we have more energy efficient windows that may improve, result in a reduction of energy usage within a building. So there is some energy analytics that have to happen. So that takes time. So it would actually be probably two separate packages. MAYOR DICKEY: David? SPELICH: Thank you, Madam Mayor. Well, it's a great report Mr. Buick and it's a troubling report. I have to be honest with you, I read it and I didn't sleep that night, Saturday night because I read it and did nothing but really make me angry. I just -- if we would have known a portion -- even I think I a small portion of the magnitude of how bad this building is in disrepair, I don't think any of us up here would have voted for the $800,000 to remodel it. I mean it's like, you know, your house has fallen down, the roof is broke, but you go out and you put hardwood floors in and put up brand new wallpaper and curtains. We totally did it backwards. I think that this is -- and believe me when I tell you Mr. Buick, I -- a lightbulb change and maybe using that little tool to get the garbage disposal unstuck is my total knowledge of TOWN OF FOUNTAIN HILLS Page 18 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 18 of 25 anything building related. So I'm not even going to sit up here and try to BS you. But I just feel like how did our staff, how did facilities, how was this not -- I mean I can look at your pictures and see that the windows don't have sealant. And believe me, I'm not talented, but I know that there's sealant missing. There's just things that I just -- I'm so disappointed that we didn't pick up on this. I know would have, could have, should have, but I just -- I feel so let down that we spent so much money to beautify this building and the outside is in such bad shape. And I cannot believe that when you come back with this, that this isn't going to be north of a $1 million. I mean I just had a estimate for windows on my home and it was 40 grand. BUICK: This will be over seven figures. SPELICH: Oh boy. December can't come quick enough. BUICK: I do want to speak to -- I'm not saying, or not knowing and -- we have clients that have gone through construction defect litigation and they come back to us and say we don't ever want to go through that again. What do we need to do? Well, what happens is, you're restricted in budget on how much you pay an architect. So you have a finite budget. You don't have a budget for maybe a building commissioning or building envelope inspector. Call your insurance person that's working on behalf of the owner top check these things. We have projects where we verify that brand new windows. We'll do a mockup. We test it, make sure that doesn't leak as they're installing it. So I think some things to think about a long-term is what is your plan for maybe improving or maybe equipping your staff with tools like us to verify some of the work as it's being installed. And I'll tell you a lot of projects don't have that luxury. And it is an expense that has to be budgeted in advance. And it's -- we see that. People have learned then rethink how they want to approach a project. So it's an unfortunate lesson learned. SPELICH: So in your professional opinion do we do these glazing or siliconing these windows or rip the Band-Aid off and do it the right way? BUICK: You're in a tough spot because they're leaking really badly. So short of putting a giant screen with a special spray over them or awnings, I think you're sort of handcuffed into having to wet seal the windows. SPELICH: Wet seal as opposed to replacing them? TOWN OF FOUNTAIN HILLS Page 19 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 19 of 25 BUICK: Yeah. Because you can replace them but you're going to have a lag time of two or three years and I think it's important to stop that water now. To minimize the adverse effects on the facility. SPELICH: So Commissioner Watts you were here in the front row and you heard what one of our residents said about possibility of a liability issue with the builder of the -- if the builder still even exists. Do you believe there was negligence in the building? BUICK: So we do a lot of forensic work. Our company studies thousands of condominiums, apartments, commercial buildings and there's always a reason why the building failed. It could have been design, it could have been the builder, it could have been the decision made not to include certain flashing elements because it was value engineered. So it's tough to say but clearly there is a workmanship issue here. But there are other reasons for it. SPELICH: So in 2001 was part of putting up a building like that, would that not have included the pans that you talk about? BUICK: Not necessarily. I'd have to study what the decision was to get to that point. SPELICH: You see where I'm going with this. BUICK: Yeah. SPELICH: I'm trying to recoup if there's any money to be recouped. BUICK: If you question -- I'll leave it to counsel -- MAYOR DICKEY: I'm sure Aaron -- BUICK: -- to answer that question. MAYOR DICKEY: Yeah, Aaron would like to say something. ARNSON: I would. Thank you, Mayor and Councilman Spelich. So I kind of anticipated that maybe this would be where the conversation would lead, at least in part. So we have discussed those issues kind of already internally that, yes, there may be issues related to construction defects or design defects. There may also be issues related to maintenance or building age or something that's incident to other factors, right, that contribute to some of the damage that we have. We are at the most preliminary stages of this. We just don't know what those are, at least in my view. I mean it sounds like the gentleman at the podium agrees that we would have to evaluate much further to make a determination as to what degree we can attribute any degree of damage. TOWN OF FOUNTAIN HILLS Page 20 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 20 of 25 So that being said, it is something that's already on our radar and something that we're aware as we go through this process, we're going to have to look into and keep the council apprised of because there's no shortage of possibilities of what this could be attributable to. SPELICH: Okay. And I'm not trying -- please, believe me, I'm not trying to put you on the spot, because I know whatever you say here could come up -- if this ever does wind up in court. I live in court. So believe me, I know what you don't want to say. Could part of your plan also be kind of a list of priorities of what you think, like you guys got to do this. Like this is number one. This is number two. This is number three. In order of importance of if in the event we don't have this over $1 million figure to get rolling. BUICK: We do that all the time. SPELICH: Okay. BUICK: I need to understand your budget and sometimes we have to work to your budget and use the money wisely. So maybe the wet seal option is just as good. We can verify that by testing the windows after we seal it. So maybe we could save money not having to replace those windows. And we could prioritize this -- what I like to tell our clients is, we want to give you a good, better, best approach. But I have to understand your budget and no one has an open checkbook. SPELICH: Yeah. It's what you have in your checking account. Just consider whatever you have in your checking account now, that's our budget. BUICK: Right. MAYOR DICKEY: It's along those lines about looking at buildings that were built 20 years ago or 21 years ago, is having that slab extend from beyond the footprint of the building is that normal or was that like -- BUICK: Yeah, actually you see it on high rises actually, or you can see a slab extension beyond the footprint of the window -- MAYOR DICKEY: And the fact that -- BUICK: -- but if I were to review the construction drawings. Let's say inception. If we're -- you know, we're always good at Monday morning quarterbacking everything, right. But so if I could quarterback this one, I would have liked to have looked at that and suggested let's slope this at a half inch per foot slope away from the building. Let's TOWN OF FOUNTAIN HILLS Page 21 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 21 of 25 put some waterproofing. Let's put some flashings if that's the desired aesthetic goal. I'm a simple engineer, I might say I don't want anything beyond the footprint of the window. Let's not have it all. But I can't argue with a designer, because there's also look and feel that you're trying to -- you're trying to represent the Town of Fountain Hills. You've just got a big gold award and so you still have to look at some of the aesthetic needs that are important to you. MAYOR DICKEY: And if it, like you said, because I know-- I wondered if it had settled, if the building part had settled. But you basically said it was almost like the outside had stared to crawl up. So is there like rebar or anything -- BUICK: Oh, yeah. There's structural reinforcement with the concrete -- MAYOR DICKEY: That extends? BUICK: That extends -- MAYOR DICKEY: But that still popped up. BUICK: We don't know how they cured the concrete. We don't know what the weather was like. We don't know how well they compacted the soil. There's so many factors there. MAYOR DICKEY: And would that -- if there's a lot of rebar, would it interfere with that flashing, or that drainage that -- BUICK: No. Oh, well, typically concrete would have a inch and a half, two inch cover, meaning concrete on top. So there is some room to grind it. You can get a -- what you do is get a X-ray or scanning contractor to scan the rebar to see what depth it's at. Verify it. Chip it a little bit. So there's a way to verify that. MAYOR DICKEY: And then talking about money, is this a weather event? Is there any insurance involvement in any of this damage? ARNSON: My guess is probably not. But -- I just don't know, Mayor. My guess is probably not. But -- MAYOR DICKEY: But we could look at that? ARNSON: Yeah, exactly, right. But my guess is no. MILLER: If there was, if I could just interrupt real quick to your point. If it was determined that there was some -- and again, we're getting into hypothetical situations here, but if it was determined that there was some shoddy workmanship or it wasn't built TOWN OF FOUNTAIN HILLS Page 22 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 22 of 25 to the construction documents, we could certainly work with our insurer to represent the town and go after, but they have some limit on their liability and protecting the town on that too, probably, right? MAYOR DICKEY: And I was kind of more thinking of the other kind of insurance, Your Honor. ARNSON: I understand. Like property -- MAYOR DICKEY: Right. ARNSON: property and casualty insurance. Yeah. MAYOR DICKEY: Okay. ARNSON: Yeah, I mean -- again, I'm speaking a little bit out of school, but typically that's going to be attributable to a single storm event that causes discernable damage. And I think what we're experiencing here is something that's kind of materially different from that. MAYOR DICKEY: Sharron? GRZYBOWSKI: Okay, for us lay people. BUICK: Sure. GRZYBOWSKI: I did a search in the report for the words mold, mildew, black mold, none of that shows up. What we do see is bioorganic growth. Is that mold? Is it the precursor to mold? Help us lay people understand exactly what bioorganic growth is? BUICK: So we are not a industrial hygienist. So it's difficult for me to say what mold it is, or what mildew it is. All I know is there's something observed on the drywall that's bioorganic in nature. To determine what type of mold it is in terms of what class it is or what type of mildew that's where the industrial hygienist needs to come in to help identify that and help articulate what you need to do in terms of a remedy. MAYOR DICKEY: Any other comments or questions? Yes, Peggy? MCMAHON: Okay, magician here. Money-wise, I mean you're asking -- you say you need to know what our budget is, but do you have any even concept or ideas? It's $1.5 million project to start or anything because we'll need to look at the budget in order to see if we have the funds in order to start taking the steps in order to remedy this issues and fix it. TOWN OF FOUNTAIN HILLS Page 23 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 23 of 25 BUICK: I mean I think first we'd have to prioritize the repairs and then assign a dollar figure to each repair. Through the efforts of professional construction estimators we can weigh in on what those costs are to develop what we think that cost is and then present it to you. We have to include contingencies, allowances, effects of the finishes and build that number. So it's tough to say what that cost is today. So certainly it's over seven figures. And is it one million, ten million, four million, three million, two million, I think there's some homework that needs to be done to get to that point. MCMAHON: Okay, so are you going to come back with a list, a priority list of what needs to be taken -- suggestions as far as what we need to do in order, so we can get there and get a budget established? MILLER: If I can just jump in? I think he's only responding to a question that was asked earlier about prioritization and if he were to do it differently than a near-term and long- term and he said yes, if we were to do that it would be helpful for me to know what's in your checkbook. And so we could certainly consider having his firm maybe do another assistance with this or maybe they might actually be the ones that would be the ones helping us identify estimates for the repair work. But that's where that all came from. MCMAHON: Okay. MAYOR DICKEY: Councilmember? MAGAZINE: We can afford it. We can afford whatever we have to do. We may not want to spend it, but we can afford it. And so my question is, and maybe it's been answered. You're going to do a near-term approximation and a long-term approximation for cost? Two different ones? BUICK: We can offer that service to do that, yes. MAGAZINE: Okay, thank you. FRIEDEL: Is it conceivable, I saw several pictures of drywall that you removed and saw some issues. Is it conceivable that there's a lot more drywall that has to be administered to and then we might find other problems deeper in that building? Or did you just hit the main areas -- BUICK: We hit the main -- first of all, if you look at the building a lot of the building's CMU and concrete. So then you have this infill of framing and drywall where you have the majority of this water damage, bioorganic issue on the framing. So it's conceivable TOWN OF FOUNTAIN HILLS Page 24 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 24 of 25 that you have more locations of similar construction experiencing the same leaks and all of that has to be factored in when you're developing your allowances and contingencies for repairs of the interior. FRIEDEL: So will that necessitate a much more thorough examination of that building then do you think or -- BUICK: I think I'd like to defer to the hygienist. Let him develop a scope for you. And determine what he feels the testing plan would be for that. FRIEDEL: I'm just wondering too, we're pulling a lot of water out of that building right now, still and it's been pretty dry. Maybe we need a moisture reading in there as well as an air quality type of -- I don't know, I'm out of my element but I just -- MILLER: I'm sorry. When you say moisture reading are you talking about moisture -- FRIEDEL: Yeah. MILLER: -- or are you talking about humidity reading? FRIEDEL: Well, moisture. If your dehumidifiers are pulling that kind of water out of there, that's a lot of water. We haven't had rain now for -- well we had a little bit this morning but -- MILLER: Right. SPELICH: I don't know how much more moisture there is in there. MILLER: As Steve, our facilities superintendent, you want to come up. I thought you've been giving me some readings or you shared with me a reading recently. BARTLETT: Yes. In fact, when Gene and I were over there before we came over here, I think we looked at our dehumidifiers and one was at 20 percent relative to humidity. And the other one was in the 40s, the one by the kitchen. I don't know what the outside, you know, what the ambient humidity was today, but I know we had a little bit of rain this morning. So it kind of varies. There is a noticeable difference in the way the building feels especially in that computer lab and again in the kitchen area. But yeah, they're pulling out quite a bit of moisture out of the air which I think has been helpful. MILLER: Thank you. MAYOR DICKEY: Anything else? Any other questions or comments. MILLER: We appreciate it and I think we've got some good direction from the council and we will provide you updates as we progress with this. TOWN OF FOUNTAIN HILLS Page 25 of 25 SEPTEMBER 20, 2022 WORK SESSION Page 25 of 25 MAYOR DICKEY: All right. SCHARNOW: Just something real quick. Grady, I'm just wondering how much money we have to spend to figure out how much money we're going to spend? SPELICH: Just for knowledge. How much was your project? How much did we pay you? BUICK: Was it 20,000-something? MAYOR DICKEY: I think we know we have to do whatever we have to do. So we'll get there. Thank you so much for -- BUICK: Thank you. MAYOR DICKEY: -- yes. Very impressive. Thank you. Yes, sir? WELDY: Mayor, if I may? In regard to the humidity, and I just checked. So right now around this building we're at about 39 percent. So the humidity has been relatively high. Keep in mind, as we discuss humidity, there are some contributing factors. We have a kitchen there that is in use and most importantly an ice machine that is in heavy use, and that ice machine has an automatic drain system into what we refer to as a floor sink. We also have restroom facilities there with running water. So we're -- while there is certainly humidity in that building, it's not unusually high. But again, we will continue to monitor it and see what we can do to reduce that. And lastly, and there was some discussion in regard to maintenance. We certainly do our best to maintain these facilities with the staff and funding that we have and we'll continue to move forward with that and maintain them for the use of all. So even when we discover these deficiencies or challenges with any one of the town- owned buildings we simply do not allow them to just sit there. If it's a major issue, we engage the town manager and the finance director and secure funding. And more often than not a lot of the stuff that's addressed goes unnoticed because it's the day in and day out. It does all cost money and staff time. Thank you for your time tonight. We certainly appreciate that. We will be returning, working with the town manager, the professional firm and facilities to address and answer to the best of our ability the questions that have been asked here tonight. MAYOR DICKEY: Thank you, Director. That's it. We're adjourned. Thank you. TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL AUGUST 22, 2022 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Dickey called the Special Meeting of the Fountain Hills Town Council held on August 22, 2022, to order at 5:32 p.m. and led the Council and audience in the Pledge of Allegiance. 2. MOMENT OF SILENCE A moment of silence was held. 3. ROLL CALL Members Present: Mayor Ginny Dickey: Vice Mayor Gerry Friedel; Councilmember David Spelich; Councilmember Sharron Grzybowski; Councilmember Alan Magazine; Councilmember Peggy McMahon; Councilmember Mike Scharnow Members Absent: None Staff Present: Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Twenty-seven members of the public were present. 4. REPORTS BY MAYOR, COUNCIL MEMBERS, AND TOWN MANAGER A. A REPORT FROM STAFF REGARDING 5G AND SMALL CELL WIRELESS Aaron Arnson, Town Attorney provided a brief overview of the memorandum he prepared in response to residents’ concerns regarding 5G and small cell wireless. 5. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS A. PRESENTATION: 2022 Legislative Session Update: Presented by: Jack Lunsford Jack Lunsford with The Lunsford Group provided an update and answered questions regarding the 2022 Legislative Session. 6. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda. Lori Troller, a Fountain Hills resident, addressed the council concerning 5G and small cell wireless voicing her appreciation to staff for the upcoming discussions on this topic. April McCormick, a Fountain Hills resident, addressed the council concerning 5G and small cell wireless voicing her appreciation to staff for the upcoming discussions on this topic. 7. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda. MOVED BY Councilmember Alan Magazine to approve the Consent Agenda, SECONDED BY Councilmember Sharron Grzybowski. Vote: 7 – 0 passed – Unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye A. CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes of the Regular Meeting of June 21, 2022; Approval of the minutes for the Joint Meeting with the Fountain Hills Schools District Board of June 21, 2022. B. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-28 adopting the Community Services Code of Conduct. . C. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-34, abandoning the 20’ Public Utility and Drainage Easement along the south side of 17039 E. Nicklaus Drive (Application A22-000005). D. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-35, approving the designation of Chief Fiscal Officer of the Town of Fountain Hills for FY23. E. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-36, approving an Intergovernmental Agreement with the City of Glendale relating to the cooperation use of the Glendale hosted and developed Glendale Tax Application. 8. REGULAR AGENDA A. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-38 declaring and adopting the results of the Primary Election held on August 2, 2022. MOVED BY Vice Mayor Gerry Friedel to approve Resolution 2022-38 as presented, SECONDED BY Councilmember Sharron Grzybowski. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye B. CONSIDERATION AND POSSIBLE ACTION: A request for a Special Use Permit to allow up to five dwelling units in the C-C (Common Commercial) zoning district on an 8,000 square-foot lot located at the northwest corner of El Pueblo Boulevard and Ivory Drive (Case# SUP22-000001). John Wesley, Director, Development Services presented on the special use permit for the 8,000 square-foot lot located at the northwest corner of El Pueblo Boulevard and Ivory Drive. John Gurczak, a Fountain Hills resident and the builder and developer for the property provided additional input on the project. Mayor Dickey opened the item for public comment; the following residents addressed Town Council: Larry Meyers, a Fountain Hills resident, addressed the council voicing his opposition to this project and inquiring if there were any other uses considered for this property. Crystal Cavanaugh, a Fountain Hills resident, addressed the council voicing her opposition to this project suggesting more outreach from the Town’s Economic Development department to find other uses for this property. Ed Stizza, a Fountain Hills resident, addressed the council voicing his concerns regarding the aesthetics of the recent developments in the Town. Janet “Faith” Fayleen, a Fountain Hills resident, addressed the council inquiring if ADA requirements were reviewed for this project. Clerk’s Note: during the public comment portion for this item, Councilmember Magazine stepped away from the Dias from 6:42 p.m. to 6:45 p.m. MOVED BY Councilmember Alan Magazine to postpone approval of Special Use Permit to September 20, 2022, Town Council Meeting, SECONDED BY Vice Mayor Gerry Friedel. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye C. CONSIDERATION AND POSSIBLE ACTION: A request to apply and take receipt of grant funding from the Arizona Office of Tourism. Amanda Jacobs, Director, Economic Development, presented the grant opportunities from the Arizona Office of Tourism and answered council’s questions. Mayor Dickey opened the item for public comment; the following resident addressed Town Council: Ed Stizza, a Fountain Hills resident, addressed the council regarding the design of the shade structure. MOVED BY Councilmember Sharron Grzybowski to approve staff to apply and take receipt of AOT VAI grant funding from the Arizona Office of Tourism to support the Town's economic development and tourism efforts, SECONDED BY Councilmember David Spelich. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye D. CONSIDERATION AND POSSIBLE ACTION: Approval of Shade ‘n Net Contract 2022.091.1 Amendment for park shade installation and repairs. MOVED BY Vice Mayor Gerry Friedel to approve Shade 'n Net Contract 2022.091.1 Amendment for park shade installation and repairs, SECONDED BY Councilmember Peggy McMahon. Vote: 7 – 0 Passed – unanimously Councilmember Grzybowski Aye Councilmember Magazine Aye Councilmember McMahon Aye Councilmember Scharnow Aye Councilmember Spelich Aye Vice Mayor Friedel Aye Mayor Dickey Aye 9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council. Vice Mayor Gerry Friedel asked that staff look into the water-related issues at the Fountain Hills Community Center that he observed. Grady Miller, Town Manager, indicated that staff is currently working on this issue and will be presenting on this topic at a council meeting in September. 10. ADJOURNMENT MOVED BY Councilmember David Spelich to adjourn, SECONDED BY Councilmember Sharron Grzybowski. Vote: 7 – 0 Passed – Unanimously The Special Meeting of the Fountain Hills Town Council held on August 22, 2022, adjourned at 7:33 p.m. TOWN OF FOUNTAIN HILLS _________________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 22nd day of August 2022. I further certify that the meeting was duly called and that a quorum was present. DATED this 18th Day of October. _____________________________ Linda G. Mendenhall, Town Clerk Post-Production File Town of Fountain Hills August 22, 2022 Town Council Meeting Special Meeting Transcription Provided By: eScribers, LLC * * * * * Transcription is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings. * * * * * MAYOR DICKEY: Good evening, everyone. Welcome. Please stand for the pledge and remain standing. ALL: I pledge allegiance to the flag of the United States of America, and to the republic, for which it stands, one nation, under God, indivisible, for liberty and justice for all. MAYOR DICKEY: Thank you. Please stand for a moment of silence. Thank you very much. Roll call, please. MENDENHALL: Thank you, Mayor. Mayor Dickey. MAYOR DICKEY: Here. MENDENHALL: Vice-Mayor Friedel. FRIEDEL: Present. MENDENHALL: Councilmember McMahon. MCMAHON: Present. MENDENHALL: Councilmember Scharnow. SCHARNOW: Here. MENDENHALL: Councilmember Magazine. MAGAZINE: Here. MENDENHALL: Councilmember Spelich. SPELICH: Present. MENDENHALL: Councilmember Grzybowski. GRZYBOWSKI: Present. MAYOR DICKEY: Thank you. Welcome back after the summer. Good to see you. We, as always, start with our reports from town manager and mayor. Grady? MILLER: Thank you, Mayor. So we do have an item on the agenda, actually, pertaining to small cell wireless and 5G, and our attorney - we had heard from residents Lori Troller at a previous meeting back in both May and June. And our attorney, I asked him to look into this because there were concerns about if the town could in fact prohibit 5G and small cell wireless from coming into town. So I'm going to turn it over to our town attorney, who actually did the report that's actually in the staff - excuse me, in the council packet. And he's going to want to give you a little bit of an update on this topic. ARNSON: Sure, Mayor and council. I'll keep this update rather brief. But we did evaluate some of the requests and concerns from these residents, and as we've discussed and provided, in fact, a copy of that memorandum to the residents, I mean, there is no ability for us to prohibit 5G and the deployment of 5G within town. Indeed, it's not just us that are preempted from doing that. It's all municipalities nationally that are prohibited from doing that. That said, the residents provided a few ideas that we may be able to work around the edges with providing some more limited regulation around aesthetics and safety. And so we actually do have a meeting scheduled, I believe, for a couple Tuesdays - MILLER: September 6th. ARNSON: - September 6th with Ms. Troller and those residents to address some of those concerns and see if we can't clean up our ordinance a little bit to get there. So we're hopeful that we'll be able to do a little bit to be able to resolve those issues to the extent that we're able. And we just unfortunately are limited in what we can do. That's all I have at this time. MAYOR DICKEY: Thank you. Any questions about that? No? Grady, do you have any other report? MILLER: I do not. Thank you, Mayor. MAYOR DICKEY: Thank you. Yes, Peggy. MCMAHON: Good evening. I hope everybody had a good summer. I did. I went to Tanzania on safari. It was awesome. But also the last couple of weeks, I've been joining Amanda Jacobs, our finance director, and meeting with a couple of the business owners in town. And it's been very, very productive. It's nice for them to see that we're all alive here in town and we're available, and dispel some myths that the town is not business-friendly. So it's good to get the message out that we are business-friendly and that we're here for them. So that's been really good. We have also been - have Dementia Friendly meetings that have been going on, and we're looking at becoming a certified Dementia Friendly town, which will be really, really good for the town and for our citizens, as well as we're doing some work on the biophilic and moving forward with that. And then later on in next week a couple of us are going to be attending the bowling league. No, the Arizona Cities and Towns League Conference. So I'm looking forward to that. Thank you. MAYOR DICKEY: Thank you. Go ahead. FRIEDEL: Thanks, Mayor. Welcome back, everyone. I, too, attended the joint sessions with the Chamber of Commerce, and I have to tell you we learned a lot from the four businesses that I did visit. And we actually contacted the town about ironing out some rough patches we had between the town and the Sanitary District for a couple of our restaurants in town. So it's really a well worthwhile attempt by the town and Amanda and the economic development area of the town to get out, visit our businesses, find out what's going on, how we can help them. And as Councilwoman McMahon said, we are business-friendly and we are open for business. So I think that will go a long way toward showing people that. I also had the privilege of attending the Purple Heart Memorial Day here in town and giving the opening remarks and welcoming everybody to that. And Mayor, I have to present to you a certificate from that day, a certificate of appreciation for all your work in helping the town become a Purple Heart Community. So I'll pass this down to you. MAYOR DICKEY: Thank you. FRIEDEL: And then one last item on my list. I'm wondering if anybody in this room has been flocked. Yes. Okay. So somebody does know what that means. So we fully support our high school in town and the PTO. If you're interested in being part of that support, contact the PTO, and they'll come out they'll flock you. What they'll do is they'll put a sign up saying you support, and they do a little canon that goes off. So we had our first football game last Friday night, and although we didn't win, we were close. But we have a good team this year, so get out there and support them on Friday nights now. They won't be here for the next couple weeks, but that next home game it'd be important to get a good crowd out there. So thank you. MAYOR DICKEY: Nice. Mike. SCHARNOW: Thank you, Madam Mayor. I think the only think I wanted to add is with the Drug Prevention Coalition, we've been keeping active during the summer and gearing up for the new school year, which Gerry has mentioned did start. So we have several things lined up this coming semester, and those efforts will continue. MAYOR DICKEY: Thanks. MAGAZINE: Cynthia and I had a wonderful vacation. We rented a house in Flagstaff to get out of the heat, and it was almost as hot up there as it is here. And we came back a week and a half early. MAYOR DICKEY: Wow. [LAUGHTER] MAGAZINE: It's only money. MAYOR DICKEY: Yes. SPELICH: Thank you, Madam Mayor. I tried to avoid politics at all cost, so I didn't do many political things. I did attend the Purple Heart ceremony. I was really surprised and in awe of -- there was two full rows of Purple Heart recipients that were all Fountain Hills residents, and many of them also have silver and bronze stars. So we were definitely --the councilmen and I were definitely in the - or the Vice Mayor and I were definitely in the room full of true American heroes. So also on top of the Mayor getting a nice honor, Justin Weldy got an honor from Phil Yin. And for those of you that don't know, Justin came up with an emblem that is going - or that is now currently being displayed on parking spaces for Purple Heart veterans. And they liked it so much that they nationally adopted his design. So it will be across the country that any town that's a Purple Heart town will have Justin's design in their parking spaces. So that's quite an honor. And so they were very thankful. And like I said, I was in awe of all the heroes that were in that room. Thank you. GRZYBOWSKI: Okay. Obviously, I didn't do anything near as exciting as these folks over the summer, but I do feel like it's first day back at school and we're doing our what we did over the summer project. I attended, virtually, two National League of Cities meetings. One of them was the State of the Cities and the other was First Tier Suburbs Council, which sounds way more complicated than it actually was. We got to hear from an organization that - I actually sent this to Grady and Rachael, I think - that they have open source ways to help you kind of try things in town before you do something permanent. And we're talking more along the lines of parks kind of stuff. So don't get too excited in your little - on your streets. There's one particular town in Mesa that they used orange cones to block off to see how welcoming the bike lane access would be, that kind of stuff. So it's temporary ways before you spend hardcore money to get a project done. Like I said, it's open source. So if there's a picnic table that needs to be built or pergolas that need to go up, they can help you with that kind of thing. It was very interesting. And hopefully it's something we can do with our next project. That's all. MAYOR DICKEY: Okay. Thank you. Appreciate you going. Appreciate everybody, what you were doing. I didn't have anything to do this summer. But no, just kidding. I actually was happy to have the greeting on the Independence Day festivities. I met virtually with the Mayor of Pietrasanta, Italy, Alberto Giovannetti, to talk about our potential sister city partnership. I also met in person with the former Mayor of Killarney, Sean Caunihan, who is the chair of their Town Twinning Association, which is like the sister cities. He gave us this tour of Killarney, and there are a lot of similarities, believe it or not, which I think that municipalities face. Two MAG meetings. One was a joint meeting with the Transportation Policy Committee, trying to make sense of the owners' veto of the Prop 400 extension that had passed the legislature with bipartisan support and with unanimous support from the Regional Transportation Council and from regional council. So I'm sure Jack will be bringing that up in his report. We'll be meeting again this Wednesday, and there'll be an update on the regional homelessness efforts, which is a - which is a homelessness prevention effort that we are joining in our capacity as a town of our size. So Grady and I met with Honorable Consul Glenn Williamson, who is - who started the Canadian Arizona Business Council, which is kind of like GPEC, but we've been having a lot of activity with them. Also, he is on the board of EPCOR, and I wanted to mention that we'll be hearing from EPCOR and talking about water issues at our September 20th meeting. And then, last - it was a long time ago, but we had Liz's (ph.) retirement party. And again, we welcome Linda here as our clerk. That's it for that. Our next item, of course, is our appearance. We already did the report on the 5G, so now we're going to do an appearance by Jack Lunsford, who's going to talk about the legislative session, what happened and what's coming. And welcome to you, Jack. LUNSFORD: Thank you, Mayor and council and Manager Miller too. It's good to see you all back here. I still need - this almost looks like a new one. Is it? Am I looking at the right one here? POCK: Here. LUNSFORD: Aha. I need an expert here. POCK: I saw it here earlier. LUNSFORD: Yeah, okay. All right. It's over there. Okay. My fault. POCK: Oh, wait. That's not it. LUNSFORD: No, that's not me. Nope, that's not me either. Is that me, the PowerPoint? POCK: Yeah, those are the two that - LUNSFORD: There you go. Right there. There we go. All right. Excellent. Thank you. Because somehow these -- you know, wherever you go, it's like a different setup every time. I have had the chance to be involved in - POCK: Excuse me, Jack. I think if you just do the down button on the keyboard, it will do it. LUNSFORD: Yeah, that's what I think I'm going to have to do. That one wasn't - there we go. So very quickly I want to give you a legislative session update. And this has to do with something that is tied for the sixth largest legislative session in state history. And I don't know what it says about me, but I've been here for at least 12 of the longest. There were 1,747 bills introduced. 388 of those were signed into law. The Governor vetoed four of them, one which is critical significance to all of us interested in transportation. Legislature adjourned sine die. So the effective date of legislation is September 24th, unless otherwise specified in the bill. So that could be with an emergency clause, meaning it's effective upon the Governor's signature, or it could have a delayed effective date. I want to remind you quickly - and I will do this fairly often so it's in your mind and my mind, you know, what are our priorities and our principles and so on. And you all know these probably in your sleep in terms of what the strategic priorities of the town are. They are guiding principles for me as to what I do when I'm not visiting with you one-on-one. I won't recite them because you know them, but I just want you to know that I pay attention to those. Two core legislative principles that were adopted by the council were to preserve local funding and, in so doing, protect state shared revenues and to do everything we can to oppose preemption of local authority. Legislature likes to preempt local authority from municipal government. And so one of my key jobs is to work both with the League and other coalition folks and other municipalities to protect our local authority. The League had four resolutions this past year, not in any order: regulate fireworks, the permissibility of those; solutions on affordable housing and homeless; allowing cities to amend their budgets after the initial adoption; and dissolving water and wastewater districts, if it's called for. The other thing we had, and I won't dwell on the first one initially, but support the extension of the half-cent sales tax. And then protect the continued liability of the highway user revenue fund for cities and towns. And we did the second one, and we worked really hard on the first one. And I'll allude to that in a second. Just to recap the League -- and you all have received in your packets the new laws report, but the League did either track or work 550-plus bills. I was in touch with them on many, many of those, and supported the town wherever - or excuse me, the League, wherever possible. And I have two municipal clients. So that makes it easy for me to do in terms of supporting the League. I actively worked on behalf of the Town of Fountain Hills more than 30 bills. And I'm proud to say that I was a key negotiator and lobbyist on both the Prop 400 extension and the short-term rentals group. So in terms of the Prop 400 extension, as we all know, the Governor did veto that. I will tell you that I've had conversations in the interim with legislators, including Representative Carroll, who was the prime sponsor in the House. The next day he said his phone was blowing up. He had no idea that the Governor was going to veto the bill. That's pretty much across the board. And I don't know if that was a missed opportunity with strategy with all of us that were working on it. Did we take the Governor for granted? I can't say that we did. I believe that members of our lobbyist contingency had conversation with him. And let me digress for one second. There's the MAG Intergovs, which as a contract Intergov for the Town of Fountain Hills, I'm not allowed to participate with them directly. The Mayor and others have allowed me to be involved in the Monday morning - excuse me - meetings. But then there was a very comprehensive lobbyist group with business ties and et cetera that I was a part of too. We actively also worked this. There were things, Mayor - I did attend the joint session, although I was in the Atlanta airport and I was listening as I was walking and driving and so on. I appreciated all the comments from the mayors and so on. I believe that there probably should have been an executive session to discuss that because there were a lot of things that either could not have been said or people weren't privy to know of that some of us on the outside have. So what's going on next? There are not only what the mayor has indicated for the meeting next week. There are other activities, myself included. I've had multiple meetings already with key legislators to find out what they anticipate for the coming session, and I'll be sharing that with you. We were all concerned about by right zoning, and because of the massive pressure that was put on the legislature by the league and the individual municipalities, that did not pass. What happened instead was there was an amendment to create a Housing Supply Study Committee. I've already attended two of those meetings. There's another one tomorrow. They'll be meeting probably all the way up until the holidays at the end of the year, and I'm not sure they know where they're going. Because of the - and I don't have time to dwell on it, but the types of presentations that they're receiving. I have a couple of ideas of my own from when I was on Mayor Stanton's staff. And I'll probably be working with the chair on them to see if we can help at least the homeless side for the housing issue. Short-term rentals, it was probably the second or third - it's in the top ten most amended bills that were worked among the negotiators that I've been involved with in almost 40 years. There was more wordsmithing than you can imagine. There was agreement, disagreement. There were holdouts, et cetera. But at the end of the day, we came forward with a bill that wasn't what everybody wanted, but it was a great step forward for municipal government in terms of their ability to permit and to regulate short-term rentals. Will there be something coming forward again? I do believe so. Although, I've seen recently that one particular short-term rental company has already announced actively in the last week the activities that they're going to do for preventing party houses and things. I will tell you that the cynic in me is - that that's a preemptive strike. But at least they're going to do it. Lastly on this one, we prevailed in protecting both the preemption issue as well as our own revenues. Boy, I lost the word. We prevailed in helping that bill to prohibit municipalities from levying residential lease taxes, and it failed. And that's a positive thing. Fireworks, you already know about that one, but I will tell you that I had an amendment after it was approaching passage in the House, and the amendment was to put teeth into the bill. Right now, it essentially says you can't do this on Fourth of July and Christmas and New Year's. You can only have the fireworks in more hours than is currently allowed by law. It's like you telling your children you can't do this. I can't see a law enforcement officer showing up on a complaint and so on. And so I'm looking at - and I'll meet with a sponsor to see if he's open to having some teeth in it, which would allow for fines and so on. And we haven't worked out how the distribution of those fines are, but that'll be important. So we're working on that. The condominium termination wasn't a lead issue for the Town of Fountain Hills itself, but it was certainly significant for Rio Verde and some other communities across the state. Representative Weninger did his best to require a 100 percent vote before you could terminate one. And as things happen, there was a compromise. They reverted back to 80 percent for existing condominiums. Going forward, it's 95 percent, and any new condominium project has to be at 95 percent. So I don't know if anything will come back because Mr. Weninger has left the legislature and he was the prime sponsor. MAGAZINE: Mayor, Jack, I'm sorry. I didn't follow that one. What is that bill? What would it do? LUNSFORD: So Mayor and Councilmember Magazine, right now a company can come in and buy a percentage of the shares or the ownership of the condominiums and force the others to sell or to terminate. And they would terminate the condominium situation. Again, Representative Weninger attempted to make that 100 percent so that no institutional investor or anybody else could come in and make those modifications, and he wasn't able to get that through. But prospectively, it will. MAGAZINE: Okay. MAYOR DICKEY: In fact, it did affect us, Jack. This came to my attention from it happening at the Four Peaks condos. And that exactly was happening. And I think the origin of this is probably more expecting individual homeowners - 80 percent of individual homeowners would agree that they wanted to terminate the condominium. But what happened is that corporations were buying them and then getting that majority - LUNSFORD: Right. MAYOR DICKEY: - and then forcing the 20 percent to leave. So the 90 percent was a great victory, but again, it's prospective. So I think I even saw an ad for Four Peaks a couple days ago having them be apartments. So I don't know how that's actually working out because I know that they didn't have an HOA board, but I think they do now. So there may be some options there. But it was definitely something that was going on here. LUNSFORD: And Mayor, I apologize for not recalling that specific one. So lastly and very quickly, there were several appropriations bills. One of them in particular is the capital appropriations bill, and it included two and a half million dollars for Dark Sky Discovery Center. Early on in the session, there was no anticipation for any additional funding this year. That was expressed to me directly. What prompted it - and this is what happens in the process - Senator Rogers wanted 19 and a half million dollars for Lowell Observatory. She didn't get that much. She got five and a half million. But as a result, then Representative Kavanagh stepped in and got the additional funds for Dark Sky Discovery Center. And then in all of those, the legislature has 11 appropriations bills. I won't go into all of them, but two of them are important to all of us. Anybody going down to Tucson? There's a $400 million widening project for one of the largest expanses of the I-10 down by the Gila River Bridge and south. And the other one is, if you're going to LA, there is a $64 million widening of the I-10 to the State Route 85, except there's a contingency on whether Prop 400 was extended or not. So that could be problematic. So what do we have for the coming year? You know, I've been doing this for 40 years. I always say, hey, I don't know what's going to happen. Well, take a look. I don't have a crystal ball this big. We're going to have a new governor. The senate will have 13 out of 30 - 43% will be new members. Eight of those will have previous experience either having been in the legislature before or moving over from the House. The House will have 35 of 60 new members, 58 percent, and only four of those with previous experience. So that means there will be new leadership in both chambers. I believe that in the Senate, there are two people who have been Speaker of the House vying for the presidency. I think at least that will give some stability, hopefully, and probably the majority leader in the House will step up a little bit. Right now the margins are one-vote margins, which gave leverage in the budget this year and all sorts of things. 16-14 for the republicans in the Senate, and 31-29 for the republicans in the House. I can't predict what they're going to be. We could have the same. There could be, as you see in my last bullet point - with voter turnout, is there a blue wave? Is there a red wave? Is there no wave? It's just hard to predict. I look forward to coming back to you in November and telling you what this looks like. And Mayor and council, I'll be happy to stand for any questions. MAYOR DICKEY: Thank you. Questions, anyone? Yes, Councilman. MAGAZINE: First - and this is aimed at Grady, I guess, or staff - short-term rentals. I hope we can look at our ordinance and look at the new legislation and see if there's anything we can do to change our ordinance. MILLER: You know, we're actually in the process of doing that. Aaron's actually on a work group of other city attorneys that are working very much with the leg on a model ordinance based on the bill that was referenced earlier that passed. We're also looking at incorporating some of the provisions that were in the short-term rental ordinance that Paradise Valley had that was able to withstand the scrutiny of the Attorney General when it was challenged under a 1487 challenge. So I think you'll be seeing something. This bill comes into effect around September 24th, was it? LUNSFORD: Correct. MILLER: So you'll probably be seeing something, I believe, Aaron, in October or so that will incorporate these. ARNSON: Yes, Mayor and council. I think the work group's - my work group's goal is to have something by that time frame that every city and town could either adopt as is or make just minor modifications so at least we can get some of that consistency too. LUNSFORD: And Mr. Town Manager, if I may, I'll offer my assistance to the council any way I can. MAGAZINE: Council has heard me, more than once, rail against legislature in terms of preemption. And in fact, I wrote an op-ed for the Fountain Hills Times about it. At times, I think the legislature thinks they want to take over the town, or all towns. You mentioned that there were 30 bills that impact the town. Are there any that passed that come to mind that would seriously preempt our abilities to do anything? LUNSFORD: Mayor and Councilmember Magazine, first of all, I mentioned that I had done 30. There was probably more than that, and I was in concert with the League. Off the top of my head - and maybe someone knows that there was a preemption -- I can't see one this year. I thought we were really strong collectively. There may be one and I may have missed it. And if so, I apologize and I'll find out. MAGAZINE: Well, this is probably the first time in my eight years, and I'm happy to hear it. MAYOR DICKEY: (Indiscernible). Aaron? ARNSON: Yeah, thank you, Mayor. Mayor and council and Councilmember Magazine, this is one of the better years for preemption, or lack of preemption, as far as I can see and recall. The biggest one by far I think that we were concerned about was zoning by right. And the league worked pretty swiftly and in concert with each other to get that - can't say defeated but, you know, transformed into something that was a lot less adversely impactful. So we're pretty satisfied, I think, on the whole, with how this legislative session turned out by way of lack of preemption. MAYOR DICKEY: That bill that turned into the study committee, and what you just said about not sure where they're going, I'm really concerned with that bill. I think it's disguised as a housing inventory solution somehow, but I think we need to be really wary of it. This by right stuff, you know, it's interesting because we've had so many conversations about group homes, and we talk about the small cell towers and short-term rentals. And as that bill was presented, if something like that passed, those discussions would be moot. I mean, we had no, literally, zoning real power in this town. So if you take the discussions that we had about the group homes or the cell phones, the cell towers, and just look at that and put that into your - well, this can't be single-family home anymore. This can't be single-family zoning or acre lots or whatever. And I think we just have to be really careful because it could be looked at as it's trying to solve this housing inventory issue. And I have a very cynical view of it right now, to tell you the truth, because I think it's - the same by right stuff is going to come back. So we just have to really watch out for that. LUNSFORD: Mayor, if I may, first of all, my cynicism antennae are up, but also one of the original sponsors of the bill, Representative Chavez, was defeated in the primary. So all of the sudden, maybe there's one less advocate - MAYOR DICKEY: Yeah. LUNSFORD: - in that particular instance. Second of all, the composition of that study committee lends itself to people discussing homelessness to affordable housing and all things in between. And I think this week - yeah, tomorrow, they're going to have Warren Tenney from AMWUA in speaking about water issues as it relates. So it's a long way from soup yet. MAYOR DICKEY: Thank you. I also want to mention that Mayor Bien-Willner from Paradise Valley, Mayor of Sedona, Flagstaff, these other cities that were - Scottsdale - with us side by side on the short-term rental and that - I think maybe more will be coming forth, but I look forward to the combination of this bill that just passed and incorporating Paradise Valley's ordinances into ours. I think that's going to be a very helpful thing in addition to Airbnb coming out and kind of putting the hammer down on some stuff. The municipal rent tax, if that had gone through, it would've cost, right - Fountain Hills would've been - UNIDENTIFIED SPEAKER: 500,000. MAYOR DICKEY: - $500,000 a year. And their kind of fix was it wasn't going to start for a couple of years, but that's a lot for us. So hopefully we won't see anything like that coming back. And last, just I think you all got the copy of the resolutions committee. So when we're at the bowling league next week, I have to go to this meeting, which is where we discuss the agenda that the League wants. And it seemed pretty innocuous. I have a couple issues with some of the things, but just wanted to make sure, since the council had a chance to look at it, if anybody had any objections or anything that you want to say before I go, because that'll be Tuesday. And then we have - then the full League gets to vote on Thursday. So if you didn't have anything on that, then we're good to go. LUNSFORD: Mayor, I look forward to seeing you at the resolutions committee, and all of you at the League meeting next week. MAYOR DICKEY: Thank you. And thank you so much for beating back some of the stuff we didn't want and getting through some of the stuff that is really going to help our community. Thank you. LUNSFORD: All right. Great. Thank you all. UNIDENTIFIED SPEAKER: Thank you. MAYOR DICKEY: Okay. Our next item is call to the public. Do we have any speaker cards? MENDENHALL: Yes, Mayor, we do. MAYOR DICKEY: Thank you. Can you do - MENDENHALL: The first one is - MAYOR DICKEY: I'm sorry. I always forget to say when you come up to -- please, you know, not your address, but whether you live in Fountain Hills or not. MENDENHALL: Correct. Lori Troller. MAYOR DICKEY: Okay. TROLLER: Good evening, Mayor, council, town manager, attorney. I'm Lori Troller, resident. Topic's 5G. Since everything that was said, all you guys were on vacation, and we had some emails, the town manager and I, going back and forth in April, and I just wanted to say thank you. Thank you for taking on - because this 5G thing, it's a big deal. There's so much technicality to it. And just wanted to say thank you. I had some more comments, but we're going to meet and we'll talk after, but this is awesome. I think this is great, and I know you're kind of excited about this too. You have to be. I wanted to say thank you because our town needs this. There's a lot we can do. So this is awesome. Thank you. MENDENHALL: Okay. We do have more, and it's April McCormack. MCCORMICK: Hi. I should just say ditto, but I did want to personally thank you. I don't know how it got on the agenda. Where I moved here from, it usually took the mayor or two council people. I don't know how it happened. I just wanted to say thank you humbly. And thank you to Aaron and Grady for their man hours thus far, and we look forward to meeting on September 6th. Thank you, thank you. MENDENHALL: That's it for public comment. We do have other speakers for an item, though. MAYOR DICKEY: Oh, okay. MAYOR DICKEY: Great, thank you. Our next item is our consent agenda, unless anybody has anything they'd like to remove. Can I get a motion? MAGAZINE: Move approval. GRZYBOWSKI: Second. MAYOR DICKEY: All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Thank you so much. We'll start our first regular agenda item, which is the adoption of the primary election held on August 2nd, 2022. Grady? MILLER: I'm going to go ahead and turn it over to our town clerk, who is going to just go ahead and provide the council the canvas of the election results. And then you'll be able to go ahead and take action on that. MENDENHALL: We had a very good year with participation at 60 percent. So I'm very happy and pleased with that. We do have - we are here to canvas and make this official. Our Mayor has won the election for the mayoral race. We have three council members who are now elected, and there's Allen Skillicorn, Brenda Kalivianakis, and Hannah Toth. MAGAZINE: Mayor. MAYOR DICKEY: Go ahead, sir. MAGAZINE: I just want to thank Linda. She really kept us up to speed on the vote count even well into the evening. So she must've been in bed propped up with pillows and a cup of coffee. But I just wanted to publicly thank her because that was very helpful. MAYOR DICKEY: Thank you. Sorry. Do we have any speaker cards? MENDENHALL: Not for this item. MAYOR DICKEY: Okay, thank you. Sorry I didn't get to it here. There we go. So do we do a - I'm sorry. I actually don't have it up yet. Resolution - ARNSON: Mayor, I think it's page 145 is the suggested motion. MAYOR DICKEY: Yeah, I was looking at my paper instead of the - FRIEDEL: You want me to do it, Mayor? MAYOR DICKEY: Yeah. Anybody can please do the motion. FRIEDEL: Move approval of Resolution 2022-38 declaring and adopting the results of the Primary Election held on August 2nd, 2022. GRZYBOWSKI: Second. MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? Thanks very much. And yes, thank you, Linda, very much for all of your professional help. I think we needed professional help. Our next item is a special use permit that we're going to be talking about on Ivory and El Pueblo. Grady? MILLER: Yes, thank you. Our Development Services director is going to be providing the council with the staff report on this. With that, I'll turn it over to Mr. Wesley. WESLEY: Give me just a second, here. Get this one out and this one up. There we go. Okay. Good evening, Mayor and council. As stated, this is request for a special use permit for residential use in a commercial zone at 15006 North Ivory. When we establish a zoning ordinance, we list uses permitted in a different zoning district. As we do so, we know there's some uses that may fit sometimes and may not fit in other cases. And so that's why we have this special use permit process, so we can consider those uses and specific situations and determine if they're appropriate and if there may or may not be any conditions that should go along with that. So that's what we're doing here this evening. The zoning ordinance specifically allows for commercial in residential districts, but only through approval through the special use permit. So the property that we have here at the north end of town, Fountain Hills Boulevard and El Pueblo, that's plat 106. It is zoned CC common commercial, and again, the request is for the special use permit. The lot that that development that's being requested is in a very southeast corner there at El Pueblo and Ivory. It's about an 8,000 square foot lot. I mentioned in the staff report that the area was in need of some improvement, that the paving wasn't in the best shape and overgrown a little bit. We knew through our discussions with the applicant and the overall HOA that they were working on some improvements, and they've done those. So I wanted to update that from what was in my report. They did that about the same time I finished my report and learned about it just after. So here's some images of the site today. And you see the parking lot is freshly sealed, coated, and striped, and a lot of the landscaping's been cleaned up. So with this request, again, we're looking at that southeast corner of the property, or the northwest corner of El Pueblo and Ivory Drive, again about an 8,000 square foot lot. The applicant in this case is proposing ground floor commercial office, basically, uses. One office would be for the applicant, and the other would be a lease space, and then some indoor parking areas and storage space. The amount of commercial space and number of units being requested at 5 results in a need for a total of 20 parking spaces. And so on site - let's see if I've got the right button. Where's this going? Have I got the red dot any place that you can see? I guess not. The parking is on the back side of the building inside the building, and then the commercial spaces front the street, but it results in a need for 20 stalls total with 6 of those being inside. And then the 14 outside will provide that 20 spaces that's needed. Here's a little closer look, then, at the site plan for the two floors. Again, that ground floor, offices and parking. Upper floor shows five residential units. And again, at this point in the process, this is a conceptual site plan. The applicant, if this gets approved, would then take this to the next level of a full site plan review through staff and provide more of the details that we're not seeing here. But this is - we hope it's sufficient for the council to be able to make a decision on whether or not the special use permit should be approved and the max number of uses that would go with that. So as we look at this, first, we took a look at the general plan and how this fit in with the general plan designation for the area. General plan calls for variety of housing types in the city and around various parts of the town, establishes various character areas. The specific character area in this location is what we termed a mixed neighborhood, which has a variety of smaller lots, a variety of densities with some non-residential uses mixed in. And so continuing that type of development on this particular corner seems to be consistent with the general plan. Section 2.02 D.5 of the zoning ordinance lays out some of the criteria that should be considered by the commission and the council with a special use permit, main things being that it's not detrimental to the health, safety, and welfare, peace and comfort of persons, and not detrimental and injurious to property improvements in the area or generally the town. So as we look at that, we had a few questions, then, that we asked and had answered as part of this review. Will allowing residential use be detrimental to the desired commercial activity? This is zoned commercial, and so we'd like to see that commercial development happen if it could. That would be a benefit to the town. As we look at this particular plat 106 area, there's been no new building in this area since about 2004. In general, we feel that the commercial is probably a little bit overbuilt. We've got a number of other commercial lots that are still vacant here, and so there doesn't seem to be a strong need for a lot of commercial. Adding residential units here could, then, add more population close to the existing businesses and help support those existing businesses. New development on this lot could help overall clean it up and make it interesting for other development to occur. And additional residents on this lot don't seem like they would particularly impede or be detrimental to the surrounding residents in the area. Will allowing residential use be detrimental to the surrounding residential neighborhood? This zoning district allows for buildings of 25 feet in height. The commercial allows 30 adjacent to it. Residential uses on a second floor versus non-residential uses on a second floor seem to be equally impactful, or possibly less impactful as those non-residential uses would be. The proposed unit sizes of these apartments are very similar to the unit sizes of the houses in the neighborhood. So they're fairly similar there. We've had a little bit of a concern about the conceptual architecture proposed. It seems a little modern and out of character for the neighborhood. So we have noted that and talked to the applicant about it. In the site plan review, we want to look at some modifications to the architecture to better fit the neighborhood. Will residential use create a desirable living environment? So would residents living here find it a desirable place to live and would it be sustainable as a residential development? It's right adjacent to residential across the street. It's at the edge and transition from a residential to a commercial area. So we feel like it would fit in that way. It's not completely surrounded by parking. It's just on the two sides. It has direct access to shopping, schools, churches, parks, and other things. So we do feel like it would be a viable location for a residential use. So we feel like in all those cases it meets the criteria outlined in the special use permit for consideration and approval. One of the issues that's come with this particular location, as it has in a couple others where you have the CC common commercial zoning district, the unique district that establishes a common parking field. You can see that in the middle here, and then the individual lots can be built out entirely and don't have to provide any parking on their own site, which is a nice way to develop. Gives you that a little bit more urban form, compact type development. But the challenge we're having coming back so many years later with these is the amount of development that theoretically can occur on each lot really exceeds the amount of parking that's available in the parking lot. So somehow we have to allocate, then, how much development occurs on a given lot to make sure that the other lots that haven't been built yet still have some room. So as we look at this particular location and the proposal for this development and the parking requirement - excuse me - the combination of the interior parking that's being provided and the required immediately adjacent parking spaces, they meet the requirements for the development that's being proposed. And we feel like that's pretty reasonable for this overall development and does not negatively impact the ability of the other lots in the center to develop. It's an issue we'll continue to refine as we work through that site plan process and engaging the property owners association make sure they're comfortable too. So far we believe they are with this combination. We want to make sure they feel like - and try to work with them to get a better handle, then, on how parking in the future will be allocated to future lots in the site. Right now this looks like it works pretty well. One of the other things we considered is - we discussed this with the Planning and Zoning Commission. The zoning ordinance as stated allows residential use in the commercial district with approval of a special use permit, but it doesn't really tell us at what density or what standard, what level it should be allowed. So that's kind of open. As we look at this site to try to determine what might be appropriate, they're proposing five apartments, which look fairly reasonable on the site and in the building being proposed. But we considered and compared it to the multi-family zoning districts that we do have in town, and you see the list here from R-2 to R-5, R-5 being our most dense. R5 allows one dwelling unit per 1,740 square feet of lot size. And given this lot size, even at the R-5 density, only four dwelling units would be allowed. So if we allow five, we're allowing something a little bit in excess of what the R-5 zoning district would allow. Is that too much for this area, too much of an impact for the neighborhood? Either the R-4 or 5 both end up at four units. One of the requirements the council put in place back almost a year ago maybe - or when did we do that, first of the year maybe - was the citizen participation plan process, where any time we have a special use permit or rezoning, the applicants have to reach out to neighbors in advance of coming to the P&Z Commission and engage them in the process, give them the opportunity to provide some input. So this is our first case to have used that process. They did provide that plan. They did mail notice to the property owners. They did not receive any direct comments back. We did have one of the neighbors come in and talk to us as staff prior to the P&Z meeting. We did have several that attended the P&Z hearing. So the planning commission met on this twice, first at their May 19th meeting. There were several issues and concerns that came up with regard to the density and the parking and some of the restrictions that might be in the association. So that was continued, then, to their June meeting. The issues were largely addressed and revisions were made to the site plan to reduce the amount of commercial space, add that interior parking space. And so with that, staff and planning commission have recommended approval. The commission has recommended four dwelling units versus the five, based on those general density requirements, dedicated parking for the building, and that that interior parking be designated for the tenants and property owner so that they do have that interior parking. So with that, I'll see if you have any questions of me at this time. MAYOR DICKEY: Thank you. Councilmember? MCMAHON: Can you please tell me why the Planning and Zoning wants four versus five? And if that becomes the case, is the builder still interested in building? WESLEY: Mayor, Councilmember, it was a - it wasn't maybe a strong thing with the commission, but as they looked at the parking and trying to balance out those parking needs and that density comparison to the neighborhood, they were just a little concerned that five might be too dense - MCMAHON: Um-hum. WESLEY: - compared to the R-2 densities that were adjacent. MCMAHON: Um-hum. WESLEY: And so they came down the side of the four, you know, that was more appropriate. At the meeting, the applicant said he was willing to go to the four. I think he would still prefer the five. It's more cost-effective, but he is here and will speak in a little bit if the council would like to ask him directly. MCMAHON: Okay. Also the parking, when you were explaining it - sorry, you guys - it was a little bit confusing. So I just wanted to make sure, given this development, whether it be four or five, that there is sufficient designated parking for the tenants, et cetera, and also for the commercial, because this is in a - more of a residential area, and I think that would be an infringement in that area if we didn't provide adequate parking -- WESLEY: Yes. MCMAHON: -- especially for the tenants who are there who are going to rent. WESLEY: Yes. So Mayor, Councilmember, so the drawings that you saw are based on the five units, and so that required the 20. If we drop it by a unit, that will reduce it by two parking spaces that would be required. So it provides even greater excess there. The tenants, with the six parking spaces in the building, and if you have four units, certainly at least they each get at least one interior parking space. And that's, again, by the stipulations that P&Z has recommended they get first choice of those interior spaces. MCMAHON: Thank you. MAYOR DICKEY: Councilman? MAGAZINE: I'll wait. I'm sorry. MAYOR DICKEY: Councilman? SPELICH: John, I'm having a hard time wrapping my mind around this project. First and foremost, I just don't understand how you can rent a place and it doesn't have a kitchen. These are not going to have kitchens. UNIDENTIFIED SPEAKER: (Indiscernible). SPELICH: No? Initially when we were first talked to, I believe that he said that there was not going to be individual kitchens in all the units. GURCZAK: No, it's all individual apartments. SPELICH: Then something's changed from the first time we talked. GURCZAK: No, it's always been like that. I think someone was thinking that we were going to do the group home, but that's not true at all. SPELICH: Okay. And then - GURCZAK: Just because, you know, this is just conceptual. (Indiscernible). MAYOR DICKEY: Would you like to come up? SPELICH: Okay. Well, on top of that and the parking concerns, I personally - and I'm not speaking for any other council members. I personally do not believe that I have enough information as far as drawing-wise, you know, the drawings and everything, to wrap my mind around it to make a good vote. I think these are very basic. I mean, these are things that you can do, you know, on a basic drawing, and I just don't - I can't conceptualize it. I just can't. I think that I would want to see more. And once again, I'm speaking totally for myself. I want to see more because if it was put to a vote tonight with just the information given, I would be a no, because I just don't have enough to go on. MAYOR DICKEY: Okay. FRIEDEL: I have some of the same concerns, but my biggest concern is that commercial area is really designed to support that whole north side of town. We give away a SUP, what are we saying there? That will never go back, and we'll never have another opportunity for commercial in that area to support the growth on the north side of town. And at some point if the state trust land gets sold, that's going to be very important, I think, to the town. We've got two others that we've given SUPs to, on Saguaro and Kingstree and Saguaro and Monterey. And nothing has happened on those yet as well. So once again, here we are changing our zoning for investments that haven't panned out yet. So that concerns me. I agree with Councilman Spelich. I need some more detail on these plans. That tenant storage down below, that's something new to me. I don't understand that. Why wouldn't that be garages? And also I'm really concerned with what Councilmen McMahon brought up, the parking. That proposed project, they have access to that common parking in that area without any issues at all. You have confirmed that? You said you thought it would be okay. I want to make sure that we don't have a parking issue with a project going in there and that they're going to be infringing on parking in other areas and then the town is going to be looked at. Those are my - those are my concerns. MAYOR DICKEY: Thank you. Councilwoman? GRZYBOWSKI: I think the confusion with the kitchen conversation - I listened to both meetings today. This is my second time listening to the May whatever it was meeting, and my first time for the June meeting. I think it was the May meeting, somebody called it a kitchenette, and a concern over no kitchen or a kitchenette or something like that. Then it was made clear at some point. So yes, it was a little confusing at the beginning, but I'm pretty sure it was at the end of the conversation in May - maybe it was June, but it was made perfectly clear that there is a kitchen. So we're good there. As for the storage question, I got to tell you, I think it's a brilliant idea because there's very little storage in condos or apartments kind of thing. So condos and apartments now are going to storage facilities down in the parking area. Scott and I were just in San Diego looking at condos for a secondary residence, and I was surprised how many didn't have this little extra storage down here like this. So I'm actually glad to see it. Thanks for putting it in there because for somebody like me that has way too much crap, you need that. MAYOR DICKEY: Councilman? MAGAZINE: Apparently, there are some questions that some council members would like to have answered, and I'm not going to make a motion, but I think it might be wise to postpone a decision on this and let John get together with the developer and see if we can get some answers to some of these questions. SCHARNOW: Thank you, Mayor. While this is a conceptual site plan, you said it's coming back at some point in time, right? WESLEY: Mayor, Councilmember, typically it would just come back to staff. This is a formal site plan review. SCHARNOW: Okay. Uh-huh. WESLEY: Although if council wanted it to come back here, you could stipulate it as such. SCHARNOW: And we previously approved another project basically across the parking lot where there was residential on that, correct? WESLEY: Correct. SCHARNOW: And there didn't seem to be any issues brought up at that time as far as parking or future concerns. So I'm not quite sure why all of the sudden they're bringing up now. You know, and as far as commercial space, I mean, that whole area is chopped up, small lots, been there 50 years, and there's been so much turnover already in the existing commercial spaces. So I just - you know, there's not opportunity there to combine large lots and create some synergy for a commercial project to serve north Fountain Hills. I mean, it's just been sketchy, you know, as far as what's happened there commercially the last 50 years. So to me, adding some residential, you know, we've been doing that all over town. So I'm not quite sure why all of the sudden this one's different. And, you know - so I support P&Z. They took it down from five to four. So, you know, they were concerned. And so to me, this seems to be a trend that we've been approving before. So I agree with P&Z. WESLEY: Mayor, if I may address one comment that was made just in terms of the parking? If this were just a ground floor, all commercial retail building, 8,000 square feet, it would require 32 parking spaces because it would all be out in that parking lot and that would be a very big impact on that adjacent development, very hard for other lots in there to be developed. By doing what's been proposed, we've now got a small portion of the ground floor in a commercial space, and the residential on the second floor, which could all be a commercial space, too, and double that parking if it were 16,000 square feet of commercial space. That would all be reviewed at a staff level. We wouldn't be here at all. You'd really impact that parking on site. And so this does help mitigate the parking by the design that's proposed. It'd become any worse if any of it was restaurant space because that would raise it to even more. MAYOR DICKEY: Thank you. That's what I wanted to say, because you're saying it's this shared use. Well, why don't they have just as much right to it as who we're protecting? I didn't quite get that part of it. I mean, don't they have just as much right to use it as the fact of anybody else who may potentially come? WE: Yes. MAYOR DICKEY: Okay. Would you like to come up and make any presentation? Thank you. And then we'll see if we have any speaker cards. GURCZAK: Good evening. My name is John Gurczak. Fountain Hills resident and builder, developer in Fountain Hills. So, you know, I think the project is, you know, really well suited for that lot. You know, the R-4, R-5 zoning, you know, it's 2,000 square feet or 1,740 square feet. But, you know, it's 8,000 square feet is the actual lot. You know, in that calculation, you could also argue that you could count the shared parking as part of that because any development just on a regular lot would require that kind of parking and have to be larger. So the old office, it's going to be something that's going to be personally occupied, the whole space, by us. And then the rest are just going to be, you know, rental units that we're going to keep long term. And, you know, the apartments, they're pretty similar to the ones that were just built on El Lago. MAYOR DICKEY: Anybody have any questions? FRIEDEL: I do. MAYOR DICKEY: Yes, sir. FRIEDEL: How many other projects have you done in town? GURCZAK: We have about six or seven under construction right now. FRIEDEL: In this town right now? GURCZAK: Yeah, I mean, couple in Firerock, you know. We have a couple in Eagles Nest and all around town too. We do - FRIEDEL: Are those - GURCZAK: - primarily specs and some built to suits. FRIEDEL: Okay. So are those primarily residential or - GURCZAK: Yeah. Yeah, like high-end custom houses, typically. MAYOR DICKEY: Thank you. Any other questions? Do we have any speaker cards on this item? MENDENHALL: Yes, Mayor, we do. The first is Larry Meyers. MAYOR DICKEY: Thank you, sir. MEYERS: Mayor, council, thanks for the opportunity to speak. I don't really have a position on this, but I do have some concerns about the process because the process predates probably most of you on this council. And I don't know that it's particularly good. I tend to agree with Councilman Magazine already in that there's less - don't be surprised now. [LAUGHTER] MAGAZINE: I'm very surprised. MEYERS: There's generally not enough information to make a decision of this magnitude. And the magnitude I speak of is in that little handout I gave you, because there's emails that basically talk about buying up other parcels within this zone. Now, this is a CC zone, and what's uncovered in the handout, the most distressing is that town management actually coaches the developers, and this isn't the first or will be the last, on how to circumvent our ordinances rather than how to comply with them. So that bothers me. I don't know that this particular project benefits the residents, which is what CC's supposed to do, the surrounding residents. But it does show the precedent that's always used. Well, you did it at Kingstree, so let me do it too. And then if you look at all the other parcels that are mentioned in that one email, pretty soon, most of the CC land tract is gone. You add that to Wilson Ejam (ph.), who's also been to the POA out there, who wants his SUP as well, and you have virtually no commercial zone on that tract of land whatsoever at the end of all of this, all done through precedent. You gave me an SUP; you gave him and SUP; you'll give me an SUP. I find that to be disturbing, and it's not the first time. It won't be the last time. But I go back to - and I disagree with Councilman Scharnow. I don't care what's going on on that tract now. That tract has history, and the McCulloch Oil company, the master planners of this community, said someday that will serve this community. Someday might not be 50 years, someday might be 70 years, someday might be 100 years, but they had an intent. And I don't think we should throw that land away and throw that intent away, because when you do that, once the land has gone to apartments, you can't get it back. What if we settled for C-2 nursing home at Saguaro and Trevino? We wouldn't have a C-1, as intended, medical center. What if we blew the top off the mountain at daybreak? We would've lost the future opportunity for a resort. What if we'd held out for what is actually an entertainment and overlay district somewhere in the future and not had Park Place on the land? What if someday this tract serves the end of town, develops state trust land, or maybe even Rio Verde? So I'd ask you all to take a step back, consider the long view, like the Chinese do, hundreds of years, a hundred years, not immediate gratification. Thank you. MAYOR DICKEY: We actually received another one. So now we have two. Crystal Cavanaugh CAVANAUGH: Good evening. Fountain Hills resident. Larry may have touched on a lot of things I too had concerns with. And I'm not against development, obviously, but sometimes it seems like we're always being reactionary versus maybe recruiting the types of projects we need and that would be a benefit for the community. And then we wouldn't find ourselves always with these special use zoning change requests. In my opinion, if someone wants to build a certain project, such as these so-called luxury apartments - and these were called luxury when I first heard it in Planning and Zoning - it's logical that they should be required to bring all the completed plans for the project in their entirety before the permits are provided. It's like we're trying to provide permits for something that's so vague and conceptual that we don't even see kitchens in there. And when I was at those past meetings, it was a concern that there weren't kitchens. And Councilwoman was trying to clear that up, and then talked about kitchenettes, but there was no kitchen or covered parking at one of the meetings I was at. And when I requested the correspondence between the town and this developer Realtor through a FOIA, it seemed that Development Services was indeed trying to coach them, to use the right verbiage, in order to help them achieve a special use permit. And this was with regards to the future tenant space on the ground floor. So they were coached to say that might be future tenant space for whatever reason. I don't know what they were planning. But is it John's job to assist an applicant in getting this pushed through the town or is it the developer who should have to demonstrate his vision and the town can then decide if a zoning change is warranted and if it's beneficial to the town? Just like the multiple lots that were already purchased this last year by Wilson Ejam, that was touched on by Larry, it's up near Sylvester's Wine Bistro. And when I spoke to Mr. Ejam previously after this happened, he indicated that if there were zoning changes approved by the town, he was planning to develop group homes. Point blank told me group homes. So if this SUP for the luxury apartments is allowed, there's no way to deny the next request for the SUP for the group homes, right? Or at least not without risk of a lawsuit. And what really is the end result and vision for that end of town? Perhaps it should be saved as the commercial zone it is for further commercial development. And now that we have a new economic development director; perhaps she can start promoting this as an area to bring in business from both ends, from Fountain Hills and Rio Verde. That's all. Those are just my thoughts, and I just feel like there's not enough information to make any decisions. MAYOR DICKEY: Okay. MENDENHALL: Ed Sitza. Stizza? Okay, Ed Stizza. STIZZA: Welcome back, everyone. Mayor, town council, staff, I hope things are well. I just have a concern on the aesthetic. This is probably a great time to bring up an aesthetic ordinance, which we do not have. So we can see what's happened over at some of the developments here. Somehow or another, the black, white, and gray is becoming prevalent here on churches, on these type of developments. And I don't know when it's going to stop. So I've also been involved with a couple projects where designers are also going down that path. So at what point are we going to stop the aesthetic of this? And I'm almost positive at the last meeting the applicant had said that there was no way possible he's going to change the design. And John Wesley just stated that he's going to work on the design. So how can you vote on something that's not locked down? I still don't understand that. And much to what Larry and Crystal just said, you know, with the SUP, we've seen they hand off the SUPs very easily, and then we make the decisions. And I think that precedent needs to stop, and it needs to stop now. I don't know how else to say that, but, you know, tell me how you're going to, you know, start to control some of this look. We're losing the blend of the town, you know. So it's really starting - most of these buildings are going way over to the left side, and it's just too - the designs should be a lot more copacetic with what we have here. And it's just not happening. So I don't know what you guys can do about that, and hopefully you can. But that's it. So thank you. MENDENHALL: It looks like we have one more. Janet “Faith” Fayleen. MAYOR DICKEY: Okay. FAYLEEN: Thank you, Mayor and council. I'm glad to be here. I'm glad to listen. Thank you for all your work. The thing I wanted to bring up about this project is nothing has been mentioned about handicap accessibility and whether or not it complies with ADA. So as long as you are looking at things, that may be something to look at and talk about. MAGAZINE: Mayor? MAYOR DICKEY: Yes, Councilman? MAGAZINE: Don't we have to consider that by law? MAYOR DICKEY: John, do you want to maybe address that, please? WESLEY: Let's go back to - I don't know if you can see it on this plan, but just on the west side of the building in about the middle there, you'll see the stripes where the handicapped parking space is. And so then you'll have the ramps, and yes, that has to be part of the building permits to make sure they're handicap accessible. MAYOR DICKEY: The residential part too? Just the commercial part? WESLEY: I think just the commercial part with such a small one, but that gets into a segment of the building code that I don't remember quite as well. MAYOR DICKEY: Okay. WESLEY: But if it is required, then we certainly would have to do it. MAYOR DICKEY: Okay. Any further questions or discussion? Councilman? SCHARNOW: Thank you, Mayor. I just want to - excuse me - address a couple of the comments. I mean, I know Mr. Myers is aware when McColluch developed this property originally and zoned it and master planned it, it was designed for 70 to 75,000 people. And there was commercial all over the place. And so this is what we have to deal with today. And a lot of the design and development standards have changed the last 50 years. And so I think developers are just trying to keep up with trends and trying to make their projects viable and trying to make them fit in as best they can with our ordinances and such. So architecture is kind of like art, you know. A lot of it is in the eye of the beholder. And if you drive around Firerock or a lot of the other upscale residential areas in Fountain Hills, there is a mix of territorial, you know, Tuscany, and modern. So there's just a variety of architecture out there. So I just don't see us passing some kind of ordinance saying, oh, you have to have territorial architecture and that's it. I just don't see that happening. And, you know, as far as the - like I said, there have been a lot of zoning changes in the last 30 years plus, because what was originally master planned just wasn't viable, and it just wasn't realistic in terms of how things are today. So I just don't see the trend that is being portrayed as so evil as being detrimental to this town, because, you know, there was a small commercial area at Golden Eagle and Marathon at one time, and the thought was, well, all those people living up there need a little, you know, Circle K and whatnot, a little strip mall up there so they don't have to drive all the way to downtown area. And so, you know, these development concepts just don't hold up anymore. And the way Plateau A was put together with the parking behind, you know, the buildings and stuff, that just isn't really done today. So, you know, we're trying to improve things that were done 50 years ago and make projects viable. So I just - I think it's been generally accepted, John, that we have an overabundance of commercial zoning here already. And you know, there have been several proposals for the Target center and such, and, you know, I just think that that's just the trend. And I, you know, just don't see that changing in terms of making projects viable, because we want more residents here to make our businesses successful. So, you know, he's provided the parking, you know, as part of his project. And so that helps. And I just don't see these major obstacles that are being portrayed out there. MAYOR DICKEY: Yes, Alan? MAGAZINE: Mayor, since there are some council members who have some questions that need answering, I'm going to move to postpone a decision on this and let John Wesley get together with the developer so they can come back with answers to some of the questions. That's a motion. FRIEDEL: Second. MAYOR DICKEY: (Indiscernible). FRIEDEL: Can I ask that you verify the parking situation with the – GURZZAK: The POA? FRIEDEL: Yeah, the POA. GURCZAK: I thought that was verified already. MAYOR DICKEY: That was a part of the June meeting, was the confirmation of that. SCHARNOW: I'm just wondering. I don't know if it's an errant question or - I mean, can we just postpone stuff, or do we need a date certain to bring it back, or - I mean, I think we need some certainty here in terms of the timing. ARNSON: So we can move to postpone, Mayor and Councilman. We can move to postpone indefinitely, which it sounds like that's what Councilman Magazine just did. Or we can move to continue to a date certain, which may be preferred. And I don't know if Director Wesley has any input as to what that certain date might be. MAGAZINE: I don't have any problem amending the motion to include a date certain if somebody can suggest what that date is. WESLEY: So I'm sure the applicant would rather do it in two weeks, but generally if we're going to do something substantive and be able to prepare something back at council, it probably ought to be at least a month. And so the second meeting in September would probably be the earliest date it should be. MAGAZINE: I'll amend my motion to include that. MAYOR DICKEY: Two weeks? MAGAZINE: Second meeting in September. MAYOR DICKEY: So second meeting. Grady, you have something to say? MILLER: I was just going to suggest the 20th because actually, technically, our staff reports for the 6th are due tomorrow. So this gives Mr. Wesley enough time to work with that. MAGAZINE: I'm not changing my motion. MCMAHON: Although I have a comment. MAGAZINE: I'll amend it. MAYOR DICKEY: Councilwoman. MCMAHON: This is just - this is just the concept plan, right? WESLEY: Yes. MCMAHON: I mean, it has to be a lot more detailed by the end of the day before you can coerce them into doing their permits and applying through the town, correct? WESLEY: Correct. MCMAHON: Thank you. MAYOR DICKEY: Yes, Councilwoman. GRZYBOWSKI: What exactly are we asking of the developer? I feel like we're not being specific enough to help the developer out as to what it is that the motion people are looking to see to come back, because I feel comfortable actually having a conversation about the issue at hand right now, not necessarily needing to postpone it. MAYOR DICKEY: I agree with that. That was going to be my question. What more information or what other sort of staff report do we need? These special use permits that we've been giving to other projects are irrelevant to this, in my opinion. We have other builders who asked to put residential on commercial mixed use, which has been on our books forever as a goal. They're different developers, so they have different reasons why there's been delays or not delays. I don't really know why. This is a separate project. Again, we have shortages in inventory. We just talked about that. And this project does the two stories. That's the way it could be. The way that whole lot - the way that whole area is right now is not going to be conducive to serving - I mean, you could put a two-story whatever here that was just commercial. So there's no master plan here that's part of that. I also want to mention, if it's commercial, then detox center, if that ends up being something on our agenda, is going to be on commercial. So if you're trying to avert something there and using this particular thing as a - I don't want to say scapegoat, but sounds like it, then I don't agree with that. And so I'm prepared to also not postpone this and go ahead with it. I don't want to have a hardship for someone just because - I don't know specifically what we're really asking for. He wants to change it to partial residential. He's got everything else in order. So this is really the only question. And I don't understand why there's such an issue. MAGAZINE: Mayor. MAYOR DICKEY: Councilman. MAGAZINE: I would like to hear from Councilmen Friedel and Spelich as to what their concerns are and see if they can be resolved. If they can be resolved, I'll withdraw my motion. MAYOR DICKEY: Thank you. Councilman? SPELICH: So John, would you please go back to the other drawing where the applicant has the layout? So that's five units. Planning and Zoning approved four. So are we saying it's four or are we saying it's five? WESLEY: Mayor, Councilmember - excuse me - that would depend upon whether the council supports the P&Z motion of four or if they want to go ahead and leave it at five, as requested by the council. But what the P&Z would say is to a maximum of whichever number you decide upon. SPELICH: So correct me if I'm wrong. Am I looking at a plan that has five? WESLEY: You are looking at a plan for five. SPELICH: Do you have a drawing that conceptualizes four? WESLEY: No. SPELICH: Okay. That's number one. Number two, I am concerned about the parking, even though they said that the parking is covered. I'm concerned about the parking. That parking lot shares a new restaurant that just came into Fountain Hills. I shouldn't say a new restaurant. A new owner and a new concept, a tie-in restaurant. I'm concerned about that. I'm concerned about - could you please go back to the conceptual outside drawing? No, the elevation, sorry. WESLEY: I don't know which way that is in here. SPELICH: I don't know either. Are we 100 percent set on this is what it's going to look like? WESLEY: No. That's been a comment all the way along, and the applicant knows that we are going to look for architecture that better blends with the neighborhood when he makes his formal submittal. SPELICH: Okay. So would it be asking too much for him to submit to us, by September, what it's really going to look like? Because here's why I'm a no vote. I don't like the way it looks. I don't have a four-apartment diagram or whatever, conceptual drawing, of what it's going to look like. So I don't have that, what that's going to look like. I definitely do not like the exterior look of this. And for the life of me, I have no idea why - why are we in such a hurry to do this? What is the big deal delaying this 30 days? What's going to change? If anything, in 30 days, lumber prices and everything are starting to come down. I know that. I'm building a home. So it's not going to hurt the applicant for us to have a real, legitimate look at what it's going to look like and what - the residents should see what they're going to live next to if they live in that area. And then secondly, I want to look at what the four thing is going to look like. I don't think it's asking too much. I'm not putting anything else into this. And if Councilman Scharnow and the Mayor think that, then they're wrong. I want to vote on what's in front of me, and what's in front of me is not correct. So why would we vote on something that's not correct? MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I feel like when these things come to us in this raw form, for lack of a better word, part of it is brought to us this way because of the expenses behind doing the actual drawings, what needs to be done. So I think that if we approve something and say stipulation is four units, stipulation is whatever, the color scheme, whatever the stipulation is for the outside, and generally speaking, these things wouldn't come back to us, but we can say, you're approved if you bring it back and it meets these requirements: the four units and the dedicated parking space and the designation of the parking inside the building for owner and tenants that the P&Z folks said. I'm not in a hurry to approve it. I just don't know why we are asking him to go to an additional expense for something he doesn't - he's not going to leave with a positive feeling today when he leaves. So that's my actual question - MAYOR DICKEY: Thank you. GRZYBOWSKI: - which obviously nobody here approves of. MAGAZINE: Well, it's kind of a tough one, but I got to say that I don't think the objections I've heard really are unreasonable. We're talking about 30 days. It's not going to - it can't make that much difference. And so I'm not going to withdraw my motion. SPELICH: Call the question. Call the question. MAYOR DICKEY: I'm sorry, but Member, you were asking about what the - did you have something to say to respond to Councilman Magazine? FRIEDEL: I'm going to - I'm going to address your question now. I agree with Councilman Spelich. I don't think we have enough detail or it's not complete enough for my liking right now too. So I support his request for 30 days. GRZYBOWSKI: So we're looking for - MAYOR DICKEY: Okay. GRZYBOWSKI: Sorry. We're looking for the drawing of the upstairs, the confirmation of the exterior. I know at the June meeting, he said he was going to do away with some of the windows on the commercial section. I do know he was talking about that as well in the June meeting. What else are we looking for for a delay? FRIEDEL: And what you have up there right now, is that a garage door I see down at the bottom? WESLEY: Yes. That's what faces Ivory. FRIEDEL: So there is garage space - WESLEY: Yes. FRIEDEL: - underneath? WESLEY: Yes. FRIEDEL: In addition to storage? Okay. MAYOR DICKEY: Okay. All right. Okay, well, he called for the question. So I guess I should stop this. All in favor of postponing until September 20th, say aye, please. ALL: Aye. MAYOR DICKEY: Any opposed? Thank you. We'll take it back up then. Thanks. All right. Our next item is a request to apply and take receipt of grants from the AOT. Grady? MILLER: Yes, Mayor and council, before you is an item for permission to apply for grants that are being administered. They're ARPA grants that are being administered by the Arizona Office of Tourism. Our economic development director, Amanda Jacobs, is going to give you a brief report on this. I'll turn it over to Ms. Jacobs. JACOBS: Good evening, Mayor, members of council. Typically with our grants, we place them on consent, but because there are three grants wrapped into one and there are matching requirements, we just wanted to be a little bit transparent on this subject, and also just good for our residents to see what we're applying for. So as Mr. Miller mentioned, last year, Governor Ducey designated Visit Arizona Initiative, so VAI - it's a mouthful. And so it's three different grants in order to accelerate tourism recovery, generate job creation and economic development. So there are three. I'll briefly go through. It's the marketing partnership and outdoor revitalization. All right. So marketing grant, last year we did apply and receive $10,000, which was designated to our community center to do a video promotion, as well as to do an enhancement on our experience website, which is the tourism arm. And this year we're requesting $230,000, and there is a 20 percent match. Those matches can be in kind, cash, or through a third party. And so what we're doing is we're working with our community relations, our community services department, to really put together a robust marketing strategy this next year. Of the 230, we're also planning to designate $55,000 towards event sponsorship. So there's different requirements in order to apply, and some of that we're going to, hopefully, again, with your permission - and if we do receive it, it will go to the International Dark Sky Association for the Dark Sky Festival to again try to generate visitors to our wonderful community, and then also the two fine art festivals are put on by the Fountain Hills Chamber of Commerce. That gets hundreds of thousands of people. So again, how do we recover from those two years, where basically we were at a standstill, there was no events, no people coming in? How can we continue to put ourselves on the map? Next, a partnership grant. This is for a new or expanded event. You heard me during my third quarter report. We did receive partnership grants, $9,000 specifically through this program for our music fest. We cannot do that again. Again, it needs to be new or expanded. And so again, our team internally is looking to expand our Irish Fest to a two-day event. The request is $56,000 and, again, a match of 20 percent, and really to increase visitation and overnight stays and work hand in hand with our hotels. So we can't go quite specific to, for instance, March 17th, but going back to March 2019, that month, in bed tax and sales tax was nearly almost $170,000. In 2020, it went down to over 70. And in '21, 56,000. So we really did get hit hard. We're starting to see that recovery, but again, we have a built-in audience. Let's attract more people and help, again, the tourism industry that was hit hard and support our hotels, our shopping, and our dining. And then last, but not least, outdoor revitalization. And so what this is seeking is for either marketing, sustainability efforts, and/or infrastructure improvements to accelerate industry recovery. And so what we're requesting - so momentarily ago I said we received some money for our community center. What we're wanting to do is not just look at the community center and the lovely activities, but to also start promoting a conference center, right? We've got new ballrooms, meeting rooms. Those people expect to pay. And so we're wanting to bring some of those event and meeting organizers again to town. Now, one thing through the pandemic is some folks feel a bit safer being outdoors. And so we think - you know, we've talked about the Centennial Pavilion, that that would be a nice extension to the community center and conference center. And then also, it's nearby the planned Dark Sky Discovery Center, our library, that it just makes sense. And the request here is a max of $250,000 - or excuse me, the request - and the match is 20 percent. And so with that, Madam Mayor, council, I'll be happy to answer any questions. And really, the request by staff tonight is for you to allow staff to apply and accept monies if we do receive them. Thank you. MAYOR DICKEY: Thank you. Questions? Councilman. MAGAZINE: Amanda, how do these - how does the shade structure relate to the one that was in the CIP for outside the community center? JACOBS: So what this - so this is our outdoor revitalization. So how it applies is tying into our community center/conference center. MAGAZINE: Okay. JACOBS: So it would be an extension. MAGAZINE: Is this the same thing with a different - JACOBS: Oh, sorry. MAGAZINE: Same thing with a different name? MILLER: Yes, it is, absolutely. JACOBS: Sorry. MAGAZINE: You know, I kind of object, frankly, to sliding this in. We had a question as part of the CIP, did we not? UNIDENTIFIED SPEAKER: Yes. MAGAZINE: And now we're seeing it in this form? What am I missing here? MILLER: So this is why it's on the regular - I think the very beginning comments that the economic development director said is that typically these are on consent. We put this purposely on the regular agenda so that we could get this out and have this discussion. MAGAZINE: I just don't think this is right. I just don't think this is the right way to handle it. We have number of comments about the shade structure previously. Every time it comes up, it seems to have a different name. It's almost like trying to slide something in here that some of us have opposed. And frankly, I resent the way this is being handled. GRZYBOWSKI: I think we've known all along that they were going to apply for a grant for it. That was part of the conversation at some point. I don't remember first time we talked about it or fifth time we talked about it, but you're right, we've talked about at least five or six times. But I know we discussed a grant because I remember for a number of grants, we've had the conversation that if it's not in the budget or if the drawings aren't done, they won't even consider us for whatever the grant is. So that's one of the reasons why I remember that this particular one, a grant was discussed. MAYOR DICKEY: And literally all of these items, particularly the three that we were having, you know, discussions about, that's what we were told. We will bring them back. That's what we're doing because we were only going to bring them back as they came up to be relevant. So this one at this point is relevant, so we're bringing it back, and that's why we're going to vote on it. MAGAZINE: Mayor? MAYOR DICKEY: Yes. MAGAZINE: Would it be any less relevant if it came up as part of the CIP? MAYOR DICKEY: So we approved the CIP as it stood with the understanding that as different projects came forward, we would vote on them individually. That's what we're doing here. MAGAZINE: Well, my understanding is different, and it may be wrong, but I thought we were going to be looking at all the CIP projects and making decisions on them. Is that not correct? MAYOR DICKEY: Well, let me - we will look at them as they come up. Otherwise, if we don't go forward with them or they don't end up being something that we're going to move forward with, we're not going to spend money of RFPs or such, then that's how we make the decisions on all of our capital projects, when they come back to us to, you know, to take whatever that next step is. So this next step - and we literally, about these three items, said if the grant - if we end up with an ability to apply for a grant, that's when we'll talk about it. And that's what this is. MAGAZINE: Well, and as I'm looking at it, it says marketing, sustainability efforts, and/or infrastructure improvements. But the wording's a lot different from what we've dealt with in the past. MILLER: So let me just explain this. So they're trying to work with the language that's in the actual grant application. So as you heard earlier, we've never referred to the community center as a conference center. So the conference center - in order to get - for this particular aspect of the grant, there needs to be some significant improvements. We just went through a big remodeling project, so that wouldn't qualify. But we were thinking creatively that possibly this pavilion - again, we know that it needed to be debated. And we know that that was going to happen tonight. So there was no way that we were trying to slide this through. That's why this was on the regular agenda. We also understood that the council could possibly have supported this if they know that the lion's share of this is being paid through other sources, so if it's a grant or other way of paying for thins. So that's what the staff did is they came up with a creative way. If the council has a concern with this, they can approve what is before you tonight and you can actually take that item off of this. So if you have a concern about the pavilion, you can certainly go ahead and remove this from the motion when you go ahead and approve the submittal for the other two. This is a total of three separate grants that we would be applying through the Arizona Office of Tourism. MAGAZINE: And what's the maximum amount we would have to pay? MAYOR DICKEY: 115,000. MILLER: The total that I've got for all three - MAGAZINE: Okay. MILLER: - because there's three grants, would be 107,000, but just for this particular one, it would be 50,000, I believe. MAYOR DICKEY: 20 percent. MILLER: So for 50,000, we would be basically getting a $300,000 pavilion. MAYOR DICKEY: Director. JACOBS: And Madam Mayor, I did include it in my report but failed to mention it here, I have to apply on behalf of the town by August 31st, which was an extension. Originally it was the 17th. FRIEDEL: Mayor. MAYOR DICKEY: Friedel. FRIEDEL: So Alan, I'm against it, as you know, but if we can get this done for 50 grand, I'm for it. MAYOR DICKEY: I think that - you just nailed it right there, on the head. So that's the decision to make, whether you want to risk, or if you want to do the match. If you don't even want to do the match, then we won't apply for it. SPELICH: I, too, was opposed to this, and I concur with Alan. I think I even said at the meeting it was probably the first time in four years him and I agreed on anything. But I think we kind of gave - correct me if I'm wrong, but I think we kind of gave the marching orders to Rachael that if she could find money somewhere else, as long as it wasn't coming out of the CIP budget, to go ahead and try to do it. So what I think is - I can understand you thinking we're getting back- doored, but I think in this particular instance, I think that we kind of gave her the marching orders, or at least I remember speaking about this and saying, if you can find the money that we wouldn't be on the hook for the whole amount, I would be for it. So knowing that we're only going to be - up to 50,000 would be our liability? - up to 50,000, she did what we requested. She went out on her own and found the money - or with the hopes of finding the money. So originally I was against it because it was all on us, but now that it's going to be a $50,000 hit, I would approve it. MAGAZINE: Mayor. MAYOR DICKEY: Yes, Councilman. MAGAZINE: Originally - I may be wrong - I thought it was 350. Now I'm seeing 250. If we can get it for $50,000, I will support it. MAYOR DICKEY: Do we have any speaker cards? MENDENHALL: Mayor, no, not for this item. 8(D)? Are you wanting to speak on this one or 8(D)? STIZZA: This one. MENDENHALL: Oh, it's for this one. Okay. We do. MAYOR DICKEY: Okay. MENDENHAL: Ed Sitzza? Sitzza? STIZZA: It's okay. MENDENHALL: I'll get it. MILLER: Mayor, while Ed's coming up, may I make just one quick comment? If we receive the grant, we'll let you know, and we'll be bringing any kind of award of contract back to this council. So you'll be fully aware as to what the cost would be. So there's more steps than this tonight. MAYOR DICKEY: Thank you. Ed? STIZZA: Thank you. So thank you, Grady, for explaining why this is being done. There are certain people in this audience here tonight - and this is probably part of the problem, transparency. This typifies it perfectly. So as far as bringing this out right now, the public had no idea of this. We're only here because we thought it could possibly be for - I'd love to have that picture back up there because I'm going to talk about the design of it, okay. And so anyway, thank you very much for explaining that because that makes total sense in timeline, amount of money. And it sounds like the grant only gets 50,000 towards the 250; am I not understanding that? You're saying it's going to get bought or built for 50, but that's not true. UNIDENTIFIED SPEAKER: No. STIZZA: Okay. That's what it sounded like back there. I'm sorry. MAYOR DICKEY: Our match would be 50 if it's - would be 20 percent of whatever it ends up being. STIZZA: Okay. So the total outlay to the town is - UNIDENTIFIED SPEAKER: 50. STIZZA: All right. So let me talk about this design. I've had a problem with the circus tent since I've seen it. The Centennial Circle is an open space. No offense to Rachael or anybody else in Parks and Rec, but part of the beauty of Fountain Hills is open space. We are continuously condensing that right now. Putting that structure over the Centennial Circle - are you going to move the statue? What's the plan there? Where are you going to put that beautiful statue that's in the Centennial Circle that represents the Centennial Circle? So there are some designs that I have that are circular in motion that will much better represent that area, still do the same thing, without it looking like a circus tent. So that thing is - you cannot tell me that aesthetically that's going to look good. It's just not. We got to stop. I mean, you guys, come on. So the observatory's not even built yet. Once the observatory's built, maybe take a look at something like this. What's the cost - well, the cost is - it's not high. So as far as you getting the actual return on investment, it's not even really that, right? But as far as the look of the thing, you're not going to be able to change this thing. I mean, how much more are we going to - you going to put one of these down in the middle of Fountain Park over the fountain? Come on, guys. I mean, at some point this has got to stop. The aesthetic of what this town is and where it's going is a big problem. I agree with what you said 100 percent as far as development, but there is a blend. There is a blend. I don't care if it's a Tuscan next to a contemporary; there's still a blend architecturally, and we are blowing that. We are blowing that completely in this town. We've done it. I mean, so let's take a stronger look at it. Thank you. MAYOR DICKEY: (Indiscernible). MAGAZINE: Yeah, just a clarification from staff. Would this go over the statue in Centennial Park? GOODWIN: Thank you. Sorry. I figured it'd be better to do it at the mike. For clarification, the answer is yes. The statue would be moved, and that is at the request of both the public labor committee and the Dark Skies Group. Both groups have actually requested a relocation of that piece regardless of this project. The idea here - and I appreciate the public comment from Ed. I know he's very involved in what we've been doing. Conceptually, the idea is to add shade. Regardless of the design, the idea is to add shade to the space to make it more usable. The art would then be more visible, ideally, because more people would use the space. But yes, the piece would be relocated on property, not out - probably either closer to the community center or future Dark Skies space. MAYOR DICKEY: Thank you. Yes, sir. Oh, Rachael. FRIEDEL: Rachael, is it too late to look at Ed's design? I've never seen it, but is it too late to look at that? Is that something - we want to see what he's got? GOODWIN: We can certainly do that. I think what we have based it on is a design -- the space itself is about 80 feet diameter, which is not small, and we were pretty prudent in the concept of keeping a center post out of it. Ideally, this will be used for performances and other fine arts and things like that. So we didn't want to have a visual obstruction in the middle. So finding something that was architecturally viable to support that does limit some of our choices. And I don't disagree with the concept - when you look at the renderings, they're not flattering, i.e. they do have a layered effect that kind of comes off circus-tent-like. But the actual installations that we've seen - again, they're just sort of layered. So there's space between the two to allow movement, to allow air, to allow cooling and things like that. So they have come out very nice. And we do anticipate them fitting the aesthetics with our color schemes, with the tans and the dark browns and things like that. MILLER: They could actually be that - the wind sails that you see sometimes that are a little bit more vertical, and they are triangular in shape. We have to be very cognizant of wind loads because even not having a center post, we're trying to make sure we don't have an issue where the wind takes those or causes some damage to the structure. GOODWIN: With all that in mind, I'd be happy to talk to Ed about his other ideas or concepts of how we might still achieve that. Thank you. MAYOR DICKEY: Anything else? Someone please make a motion, 165. MCMAHON: Move to approve staff to apply and take receipt of AOT, VAI grant funding from the Arizona Office of Tourism to support the town's economic development and tourism efforts. SCHARNOW: Second. MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? Thank you so much. Our next item is - speaking of shade, it's Shade 'n Net contract. Grady? MILLER: I'll just explain it simply and Rachael can fill in the details on it. So basically we have a particular contractor, which is Shade 'n Net, and for it's for a contract amount of about 50,000, which is my authority. We are anticipating a number of these sunscreens or sunshades that we'll be doing with this particular vendor. We've had very good luck with this vendor. We had another one that didn't work out so well. And so we're trying to increase the amount from 50,000 by another 450,000 in anticipation of additional sunshades that we'll be doing, particularly, I believe, at Golden Eagle Park. With that, I'll turn it over to Ms. Goodwin, who will provide a little bit more background. GOODWIN: Thank you. And yes, he kind of hit the highlights here. This is a standard vendor that we use for all of our shade needs. This is not associated with the project we just talked about. It has nothing to do with that. Our parks have a lot of shade structures in them, whether they're over our ramadas, our picnic areas, our playgrounds, different areas like that. So having a multi-year contract available so that we can move forward with the additional shade structures at our ball fields, as well as have contract availability for us to actively respond to any damage, whether that's monsoons, ripping, wear and tear, vandalism, those kinds of things, having that contract and availability so we can proactively and quickly address those issues, should they come up. With that, I didn't prepare any visuals. Everybody knows we've got a lot of shade structures in our park, and I think there's actually more than, you know, you anticipate sometimes. Like Grady said, we have those different types of sails, especially over our playgrounds. We have a number of them at all of our different sport courts and things like that. So just being able to address those and keep those in good working order. MAYOR DICKEY: Councilman. SPELICH: Thank you, Madam Mayor. Rachael, did I hear 450,000? GOODWIN: It's a multi-year contract, so it's over the life of five years. SPELICH: Oh, so it would be five years spread over, and you would spend up to 450,000 in that five years? GOODWIN: Correct. SPELICH: You don't plan on blowing 450,000 next year, right? GOODWIN: I don't have 450,000. Yes, correct. SPELICH: I just want to make sure. You love your shade. GOODWIN: It's hot out there. Yes, no, it is, again, for the life of the contract over multiple years. SPELICH: Okay. UNIDENTIFIED SPEAKER: (Indiscernible) calling her shady. MAYOR DICKEY: I know. There's a lot of jokes. Do we have any speaker cards? MENDENHALL: Not for this item, we don't. MAYOR DICKEY: Thank you. Any further discussion or a motion, please? FRIEDEL: Move to approve Shade 'n Net contract 2022.091.1, amendment for park shade installation and repairs. MCMAHON: Second. MAYOR DICKEY: Second, please. MCMAHON: Second. MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. GOODWIN: Thank you. MAYOR DICKEY: Any opposed? Thank you. Next we have our discussion, direction of town manager. And if there isn't anything, we can take a motion to adjourn this meeting, and then we'll take a little break before we start the work study. FRIEDEL: Mayor, I have something. MAYOR DICKEY: Oh, go ahead, sir. FRIEDEL: Excuse how irritated I'm going to be about this, but the last week and a half, I had three opportunities to visit the community center, and all I'm going to say is probably three, four months ago, Councilman Spelich almost had a heart attack up here discussing the water issues in that community center. And I'm just going to tell you how embarrassed I was, because the odor in that building, the mildew smell, was unbelievable. On a Thursday night I was there and people actually walked out because it was so bad. There's stains in the carpeting, sandbags still at the doors. If we can't get this under control - we spent $800,000 on that building, and we still have this water or moisture issue that was never fixed or addressed. We'll never get that smell out of the carpeting, number one. Number two, I'm just wondering what health risks we have for, A, our employees working in that building all day, and secondly, that's a hub for our seniors in this town. It's distressing to me and embarrassing to sit with that building in that condition. If that was here, there's no doubt in my mind that would've been already addressed. So I think we need to get to the bottom of it and make these corrections. Whatever we need to do, we need to streamline that to get it done. We're also charging people - MAYOR DICKEY: To use the space. FRIEDEL: - for that environment. And I find that just distasteful. SPELICH: Thank you, Madam Mayor. Gerry - or I'm sorry, Vice-Mayor Friedel is 100 percent right. Five or six months ago I did literally have a heart attack on this stage, or on this dais, because I had known that we had spent $800,000 of our taxpayers' money on this building. And at the time, I had said it's absolutely imperative that any water mitigation that needed to be done, needed to be done, because I think I said -- if you go back and look at the video, I think I told everybody up here that the first major event, there was going to be issues. And I specifically said, when the residents of this town find out that the $800,000 of their money that we spent, a significant portion of the carpeting and everything - I didn't go to the community center. I'll be quite honest with you. The Vice-Mayor called me and told me about it. I didn't go because I didn't want to be upset. So I told everybody up here. I said that we needed to make it a priority, and I believe, before we spend any more money on any more studies on anything - I don't care what it is. Before we spend any money on anything on our wish list, please - I'm going to reiterate this again. Please, let's get to the bottom of what the problem is concerning the water problem at the community center and spend whatever money we have to mitigate it and get it fixed once and for all. MAYOR DICKEY: Grady. MILLER: Mayor, if I may. So if you recall, council, at that time, I told you this was a high priority and we were going to work on it immediately. I will talk to you at the break and let you know what we've done to date. In fact, we are supposed to be bringing some architectural concepts or their plans on what they think we need to do. So that's been worked on since we had this discussion previously. So that's all I have to say at this point, and you'll probably be hearing about this - Justin, what part of September? WELDY: The latter. MILLER: The latter part. MAYOR DICKEY: All right, Aaron. I don't know how far we're going on this, how much we're allowed to discuss stuff. So just let me know. ARNSON: It sounds as though the discussion direction of town manager is pretty clear. MILLER: (Indiscernible). ARNSON: Yeah. FRIEDEL: Can I just add one thing? I get we need to do something around those doors. I walked down a hallway on the other side of the building that was at risk. So I don't know how far-reaching this is, but we've got issues. MAYOR DICKEY: Okay. All set? Motion to adjourn, please. SPELICH: So moved. SPELICH: So moved. GRZYBOWSKI: Second. MAYOR DICKEY: All in favor, aye? ALL: Aye. MAYOR DICKEY: Thank you. ITEM 7. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Kukkola Sonia, Financial Services Technician Request to Town Council Regular Meeting (Agenda Language):  PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Approval of a Liquor License Application for the Hogwash Saloon, located at 16737 East Parkview Avenue Suite B, Fountain Hills, Arizona, for a Series 6 (Bar) license.  Staff Summary (Background) The purpose of this item is to obtain the Town Council's recommendation regarding a liquor license application submitted by Jeffrey Craig Miller, agent of the Hogwash Saloon, for submission to the Arizona Department of Liquor. Staff reviewed the liquor license application and found that it is in full compliance with Town Ordinances. Related Ordinance, Policy or Guiding Principle A.R.S. §4-201; 4-202; 4-203; 4-205 and R19-1-102 and R19-1-311. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the liquor license application. SUGGESTED MOTION MOVE to approve a series #6 liquor license application for the Hogwash Saloon.   Attachments Application series 6  Department Recommendation  Form Review Form Review Inbox Reviewed By Date Finance Director David Pock 10/04/2022 05:08 PM Town Attorney Aaron D. Arnson 10/05/2022 02:15 PM Town Manager Grady E. Miller 10/06/2022 09:42 AM Form Started By: Linda Mendenhall Started On: 09/28/2022 01:42 PM Final Approval Date: 10/06/2022  TOWN OF FOUNTAIN HILLS ADMINISTRATION DEPARTMENT INTER OFFICE MEMO TO: (as applicable) • Streets Division • Fire Department • Building Division • Community Services • Development Services • Law Enforcement • Licensing DATE: 9/29/22 FR: Sonia Kukkola, Financial Services Technician RE: Liquor License Application Attached is a Liquor License Application for staff review. Review the application, then mark or sign, indicating staff’s recommendation for approval (with or without stipulations) or denial. If staff’s recommendation is to deny and/or there are stipulations for approval, please attach a memo that specifies the reasoning and the memo will be forwarded on to the Town Council for their consideration of this application. Name of Organization: Hogwash Saloon, Fountain Hills AZ 85268 Applicant: Jeffrey Craig Miller Date(s) of Event: N/A Date Applications Received: 9/1/22 Town Council Agenda Date: 10/18/22 STAFF REVIEW AND RECOMMENDATION: Department/Division Staff Member Approved Denied N/A P & Z John Wesley X Community Services Linda Ayres X Peter Johnson Building Safety X Fire Department Mike Winters X Law Enforcement Larry Kratzer X Licensing Sonia Kukkola X Street Department Jeff Pierce X Attach report for denial or any recommendation requiring stipulations. ITEM 7. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of budget transfers for the Tourism Fund as a result of grant awards from the Arizona Office of Tourism. Staff Summary (Background) Throughout the fiscal year, it is sometimes necessary to transfer funds from one budget account to another.  In most cases, the funds to be transferred are within the same department and can be made administratively without the need to request Town Council approval.  The following transfers are needed to move budget between departments and between funds; therefore, Council approval is requested. The Arizona Office of Tourism has allowed the Town to carryover $17,783 of unused FY22 Proposition 302 funds, in addition to awarding an additional $42,682 from Proposition 302 and $230,000 from the Visit Arizona Initiative grant for FY23. In order to utilize these awards, the following budget transfers for revenues and expenditures are necessary between the Special Revenue Fund and the Tourism Fund.  $60,465 from Special Revenue Administration (SRAD) Revenue to G5201 (TOURISM) Revenue. $60,465 from Special Revenue Administration (SRAD) Contingency to G5201 (TOURISM) Expenditure. $230,000 from Special Revenue Administration (SRAD) Revenue to G5205 (TOURISM) Revenue. $230,000 from Special Revenue Administration (SRAD) Contingency to G5205 (TOURISM) Expenditure. Related Ordinance, Policy or Guiding Principle Town Council approved financial policies and best practices. Risk Analysis If not approved, the additional grant monies will not be accounted for according to best practices and as required by the grant agreements.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the budget transfers as requested. SUGGESTED MOTION MOVE to approve the attached budget transfers as requested. Fiscal Impact Fiscal Impact:$272,682 Budget Reference:TOURISM Funding Source:Arizona Office of Tourism If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments Budget Transfer  Form Review Inbox Reviewed By Date Finance Director (Originator)David Pock 10/04/2022 07:35 AM Town Attorney Aaron D. Arnson 10/04/2022 08:01 AM Town Manager Grady E. Miller 10/06/2022 09:42 AM Finance Director (Originator)David Pock 10/10/2022 10:05 AM Form Started By: David Pock Started On: 10/04/2022 06:28 AM Final Approval Date: 10/10/2022  10/10/2022 10:01 |TOWN OF FOUNTAIN HILLS |P 1 DPock |BUDGET AMENDMENTS JOURNAL ENTRY PROOF |bgamdent LN ORG OBJECT PROJ ORG DESCRIPTION ACCOUNT DESCRIPTION PREV BUDGET AMENDED ACCOUNT LINE DESCRIPTION EFF DATE BUDGET CHANGE BUDGET ERR____________________________________________________________________________________________________________________________________ YEAR-PER JOURNAL EFF-DATE REF 1 REF 2 SRC JNL-DESC ENTITY AMEND 2023 04 3 10/18/2022 GRANT BUA TOURISM 1 7 1 SRAD 4401 SPEC REV-ADMIN GRANTS -6,791,850.00 60,465.00 -6,731,385.00 400-10-10-105-000-0710-4401- TO TOURISM G5201 10/18/2022 2 TOURISM 4401 G5201 TOURISM GRANTS -25,000.00 -60,465.00 -85,465.00 320-10-10-107-100-2005-4401-G5201 FM SRAD 10/18/2022 3 SRAD 4401 SPEC REV-ADMIN GRANTS -6,791,850.00 230,000.00 -6,561,850.00 400-10-10-105-000-0710-4401- TO TOURISM G5205 10/18/2022 4 TOURISM 4401 G5205 TOURISM GRANTS .00 -230,000.00 -230,000.00 320-10-10-107-100-2005-4401-G5205 FM SRAD 10/18/2022 5 SRAD 7010 SPEC REV-ADMIN CONTINGENCY 5,000,000.00 -60,465.00 4,939,535.00 400-10-10-105-000-0710-7010- TO TOURISM G5201 10/18/2022 6 TOURISM 6251 G5201 TOURISM SOFTWARE LICENSE/MAINT .00 60,465.00 60,465.00 320-10-10-107-100-2005-6251-G5201 FM SRAD CONTINGENCY 10/18/2022 7 SRAD 7010 SPEC REV-ADMIN CONTINGENCY 5,000,000.00 -230,000.00 4,770,000.00 400-10-10-105-000-0710-7010- TO TOURISM G5205 10/18/2022 8 TOURISM 6402 G5205 TOURISM PROFESSIONAL FEES .00 230,000.00 230,000.00 320-10-10-107-100-2005-6402-G5205 FM SRAD CONTINGENCY 10/18/2022 ** JOURNAL TOTAL 0.00 ITEM 7. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2023-33 with Safebuilt to provide building inspection services in the Development Services Department. Staff Summary (Background) The Development Services Department has been experiencing high levels of building permit activity.  The issuance of building permits results in a high level of requests for inspections.  The Town has one full-time building inspector.  The Building Official can also perform inspections, but that pulls him away from performing plan reviews and assisting customers at the Development Services counter. Over the last year, the number of inspections being requested on a daily basis often exceeds what is possible to complete and maintain quality.  Staff has either had to move inspection requests to the next day or do quick inspections.  This level of activity has been stressful for the inspector and does not provide the level of service we desire to provide for our customers.  To help relieve this problem, funding was included in this year's budget to contract with an outside agency to provide the additional inspection services as needed.  Following a solicitation process, Safebuilt was selected to receive the contract for these services.  Safebuilt has been working for the Town doing these inspections under a smaller, earlier contract and has been providing good service and assistance to our inspector.   Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval on Professional Services Agreement 2023-33.   SUGGESTED MOTION MOVE to approve Professional Services Agreement 2023-33 with Safebuilt. Fiscal Impact Fiscal Impact:$130,000 Budget Reference:Adopted Funding Source:General Fund - DVSBS If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments Safebuilt Contract  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 09/28/2022 11:04 AM Finance Director David Pock 09/28/2022 12:55 PM Town Attorney Aaron D. Arnson 09/28/2022 08:41 PM Town Manager Grady E. Miller 09/30/2022 08:07 AM Form Started By: John Wesley Started On: 09/20/2022 01:39 PM Final Approval Date: 09/30/2022  Contract No. 2023-033 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SAFEBUILT ARIZONA, LLC THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered upon execution between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and SafeBuilt Arizona, LLC, a(n) Arizona limited liability company (the “Vendor”). RECITALS A. The Town issued a Request for Proposals, RFP No. “RFP-2022-022” (the “RFP”), a copy of which is on file with the Town and incorporated herein by reference, seeking proposals from vendors interested in providing Building Inspection Services for the Town (the “Services”). B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”), attached hereto as Exhibit A and incorporated herein by reference. C. The Town desires to enter into an Agreement with the Vendor to perform the Services, as set forth below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Vendor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date of execution above and shall remain in full force and effect until June 30, 2023 (the “Initial Term”), unless terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this Agreement may be renewed for up four successive one-year terms (the “Renewal Term”) if (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town approves the additional one-year term in writing (including any price adjustments approved as part of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Vendor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Vendor, elect to waive this requirement and renew this Agreement. The Initial Term and the Renewal Term are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. This is an indefinite quantity and indefinite delivery Agreement for Services as previously set forth herein. Services shall only be provided when the Town identifies a need and proper authorization and documentation have been approved. For project(s) determined by the Town to be appropriate for this Agreement, the Vendor shall provide the Services to the Town on an as-required basis relating to the specific Services as may be agreed upon between the parties in writing, in the form of a written acknowledgment between the parties describing the Services to be provided (each, a “Work Order”). Each Work Order issued for Services pursuant to this Agreement shall be (i) in the form provided and approved by the Town for the Services, (ii) contain a reference to this Agreement and (iii) be attached to hereto as Exhibit B and incorporated herein by reference. By signing this Agreement, Vendor acknowledges and agrees that Work Order(s) containing unauthorized exceptions, conditions, limitations, or provisions in conflict with the terms of this Agreement, other than Town's project-specific requirements, are hereby expressly declared void and shall be of no force and effect. The Town does not guarantee any minimum or maximum amount of Services will be requested under this Agreement. 3. Compensation. The Town shall pay the Vendor an aggregate amount not to exceed $650,000 (and not to exceed $130,000 per term), including all renewals, at the rates set forth in the Fee Proposal attached hereto as Exhibit A and incorporated herein by reference. 4. Payments. The Town shall pay the Vendor monthly (and the Vendor shall invoice the Town monthly), based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. This Agreement must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Vendor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Vendor’s performance. The Vendor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Vendor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Vendor. The Town has no obligation to provide Vendor, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Vendor. 9. Performance Warranty. Vendor warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 10. Indemnification. To the fullest extent permitted by law, the Vendor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Vendor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Vendor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Vendor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. E. Primary Insurance. Vendor’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. G. Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Vendor. Vendor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Vendor shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Vendor shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Vendor will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Vendor’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Vendor’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Vendor under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Vendor shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. B. Vehicle Liability. Vendor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Vendor’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Vendor engages in any professional services or work in any way related to performing the work under this Agreement, the Vendor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Vendor, or anyone employed by the Vendor, or anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers’ Compensation Insurance. Vendor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Vendor’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Vendor of written notice by the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Vendor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent or representative of the Vendor to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Vendor an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Vendor fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Vendor acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Vendor do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Vendor. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Vendor without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision shall be a breach of this Agreement by Vendor. 13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Vendor is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Vendor. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Vendor from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Vendor: SafeBuilt Arizona, LLC 3707 E. Southern Ave., Floor 1 Mesa, Arizona 85026 Attn: Shani Casillas/Sharon Marquez or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Vendor shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Vendor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Vendor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Vendor as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Vendor pursuant to this Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of intended audits. Vendor shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 13.20 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. [SIGNATURES ON FOLLOWING PAGES] IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first set forth above. “Town” TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Grady E. Miller, Town Manager ATTEST: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: Aaron D. Arnson, Town Attorney [SIGNATURES CONTINUE ON FOLLOWING PAGES] “Contractor/Vendor/Consultant” ____________________________________, By: Name: Title: SafeBuilt Arizona, LLC, a(n) Arizona limited liability company Gary Amato CAO EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SAFEBUILT ARIZONA, LLC [Consultant’s Proposal] See following pages. Town of Fountain Hills Admin-Procurement Robert Durham, Procurement Officer 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services RESPONSE DEADLINE: July 7, 2022 at 5:00 pm Report Generated: Wednesday, August 3, 2022 SAFEbuilt, LLC Proposal CONTACT INFORMATION Company: SAFEbuilt, LLC Email: proposals@safebuilt.com Contact: Hill McCoy Address: 444 North Cleveland Avenue Loveland, IL 80537 Phone: (817) 798-9005 Website: www.safebuilt.com Submission Date: Jul 6, 2022 10:36 AM PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services PROPOSAL DOCUMENT REPORT Request for Proposals - Building Inspection Services Page 2 ADDENDA CONFIRMATION Addendum #1 Confirmed Jul 6, 2022 10:25 AM by Jessica Koehler QUESTIONNAIRE 1. Certification By confirming questions under this section, the Vendor certifies: NO COLLUSION* The submission of the Proposal did not involve collusion or other anti-competitive practices. Confirmed NO DISCRIMINATION* It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246. Confirmed NO GRATUITY* It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip favor or service to a Town employee, officer or agent in connection with the submitted Proposal. It (including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager, Assistant Town Managers, Department Heads, and other Town staff. All contact must be addressed to the Town’s Procurement Agent, PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services PROPOSAL DOCUMENT REPORT Request for Proposals - Building Inspection Services Page 3 except for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to influence the selection process by any means shall void the submitted Proposal and any resulting Agreement. Confirmed FINANCIAL STABILITY* It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential costs resulting from an award of the Agreement. Confirmed NO SIGNATURE/FALSE OR MISLEADING STATEMENT* The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or misleading statement, shall void the submitted Proposal and any resulting Agreement. Confirmed PROFESSIONAL SERVICES AGREEMENT* In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services Agreement including the Scope of Work and other Exhibits. Confirmed REFERENCE CHECKS* References will be checked, and it is Vendor’s responsibility to ensure that all information is accurate and current. Vendor authorizes the Town’s representative to verify all information from these references and releases all those concerned from any liability in connection with the information they provide. Inability of the Town to verify references shall result in the Proposal being considered non-responsive. PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services PROPOSAL DOCUMENT REPORT Request for Proposals - Building Inspection Services Page 4 Confirmed 2. Vendor Proposal GENERAL INFORMATION* A. One page cover letter as described in the section titled "RFP Submission Process", the subsection titled "Required Submittal". B. Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address, identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under this section for each member. If a limited liability company, provide the name of the member or members authorized to act on the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of the person to contact concerning the Proposal. C. Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that supports the Vendor’s authority to provide services in Arizona. D. Provide a general description of the Vendor’s organization, including years in business. E. Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last five years. Briefly describe the circumstances and the outcome. F. Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly describe the circumstances and the outcome. 2.1_General_Information.pdf EXPERIENCE AND QUALIFICATIONS OF THE VENDOR* Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a similar size to the Town, specifically relating experience with respect to Building Inspection. PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services PROPOSAL DOCUMENT REPORT Request for Proposals - Building Inspection Services Page 5 A. Vendor must demonstrate successful completion of at least three similar projects within the past 60 months. For the purpose of this Solicitation, “successful completion” means completion of a project within the established schedule and budget and “similar projects” resemble this project in size, nature and scope. Provide a list of at least three organizations for which you successfully completed a similar project. This list shall include, at a minimum, the following information: 1. Name of company or organization. 2. Contact name. 3. Contact address, telephone number and e-mail address. 4. Type of services provided. 5. Dates of contract initiation and expiration. 2.2_Experience_and_Qualifications_of_the_Vendor.pdf KEY POSITIONS* A. Identify each key personnel member that will render services to the Town including title and relevant experience required, including the proposed project manager and project staff. B. Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of what their role will be in providing services to the Town. C. If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for providing supervision must be included. D. Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward the Proposal page limit. However, each resume shall not exceed two pages in length. 2.3_Key_Positions.pdf PROJECT APPROACH* PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-022 Building Inspection Services PROPOSAL DOCUMENT REPORT Request for Proposals - Building Inspection Services Page 6 A. Describe the Vendor’s approach to performing the required Services in the section titled Scope of Work, and its approach to contract management, including its perspective and experience on partnering, customer service, quality control, scheduling and staff. B. Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s Representatives. 2.4_Project_Approach.pdf PRICING* 2.5_Pricing.pdf Fountain Hills, AZ July 7, 2022 | 5:00 pm SAFEbuilt Arizona, LLC RFP-2022-022 Building Inspection Services PORTAL SUBMITTAL Shani Canillas Account Manager 970.294.6801 scanillas@safebuilt.com Eric Pendley Regional Director of Operations 970.977.6270 ependley@safebuilt.com Tab 1 General Information MAKING A DIFFERENCE WHERE YOU NEED US Thursday, July 7, 2022 The Town of Fountain Hills Development Services 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 RE: RFP-2022-022 Request for Proposals for Building Inspection Services To Whom it May Concern: SAFEbuilt Arizona, LLC (SAFEbuilt) is pleased to present this response to the Request for Proposals for Building Inspection Services for the Town of Fountain Hills, AZ. Accurate and timely Building Inspection Services are critical to supporting development. SAFEbuilt provides efficient and effective solutions using our proven methods to deliver high customer satisfaction at a competitive cost. SAFEbuilt has been providing Building Department Services since 1992, and we currently support the Town of Fountain Hills with plan review and building inspection services. Our goal is to ensure that the Town has the right resources available to the community whenever needed. To provide your community with quality services, choosing a company with demonstrated abilities like SAFEbuilt is essential. Our long-term experience with other communities in Arizona and throughout the Southwest, along with our own experience supporting the Town, provides SAFEbuilt with a thorough working knowledge of the Town’s requirements and expectations. Our previous work highlights our technical expertise in performing these services in a timely, well-qualified, and resourceful manner. We have provided examples of our work, each similar to the contract’s size, scope, and complexity. Our proposal details our services, qualifications, and fees for delivering outstanding Building Inspection Services to support your Building Department. We enthusiastically present this proposal for your review and evaluation. We thank you in advance for taking the time to assess our proposal. Your main point of contact for questions or clarifications about this proposal is your Account Manager, Ms. Shani Canillas. She can be contacted at 970.294.6801 or by email at scanillas@safebuilt.com. Again, thank you, and we look forward to continuing and growing our support for the Town of Fountain Hills. Best Regards, Chris Giordano Chief Executive Officer SAFEbuilt Arizona, LLC, a SAFEbuilt Company INTEGRITY • IMPROVEMENT • SERVICE • TEAMWORK • RESPECT INTEGRITY • IMPROVEMENT • SERVICE • TEAMWORK • RESPECT 5 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Vendor Identification Information SAFEbuilt Arizona, LLC is a wholly-owned subsidiary of SAFEbuilt, LLC, an industry-leading, third-party provider of building department services to municipal and private clients in 31 states. SAFEbuilt Arizona, LLC, was registered with the State of Arizona Office of Corporate Commission on October 3, 2014. Points of Contact Ms. Shani Canillas, Account Manager, and Mr. Eric Pendley, Regional Director of Operations, are the primary points of contact for questions concerning this proposal. Headquarters 444 N. Cleveland Ave Loveland, CO 80537866.977.4111 Ms. Shani Canillas Account Manager 970.294.6801scanillas@safebuilt.com Mr. Eric Pendley Regional Director of Operations 970.977.6270ependley@safebuilt.com Offices Principal Office 444 N. Cleveland Ave Loveland, CO 80537 Local Office 4325 East Via Donna Road Cave Creek, AZ 85331 6 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Organization In 1992, SAFEbuilt began providing exceptional Community Development services to local governments. Today, we are a national leader performing value-added professional, technical, and consulting services in 31 states and the District of Columbia for the efficient delivery of third-party solutions. While we started by simply providing construction inspections and plan reviews for several communities in Northern Colorado, our areas of service have expanded over the past 30 years to include: Code Enforcement Permit Technician Certified Building Ocial Community Development Automation Software Expedited Plan Review, Inspections, and Engineering for Special Projects Housing Authority Inspections Planning and Zoning Services Disaster Recovery Full Service and Supplemental Building Department Operations Residential, Commercial, and Industrial Plan Review Building, Mechanical, Electrical, and Plumbing Inspection Fire Plan and Life Safety Review and Inspection Over the decades, our capacity has grown to 1,400+ employees who provide flexibility and economy of scale to 1,000+ communities like the Town of Fountain Hills. We deliver solid teams of skilled industry professionals to meet the goals and objectives of each community we serve, providing experienced staff with the necessary licenses and certifications to achieve successful outcomes. SAFEbuilt has completed thousands of community development projects, and we have the staff to accommodate all the requirements needed for your growth, delivering consistent and responsive customer service every day. 7 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Terminated Contracts/Subcontracts SAFEbuilt Arizona, LLC has only one terminated contract to report for the past five years. The contract was with the Town of Clarksdale, AZ was canceled, because the project that SAFEbuilt was selected to support was canceled. Please see the supporting letter below. TOWN OF CLARKDALE COMMUNITY DEVELOPMENT DEPARTMENT PO Box 308, Clarkdale, AZ 86324 February 5, 2019 Mr. Scott Martin SAFEBuilt 11684 N. Huron St., Suite 1048 Northglenn, CA 80234 RE: Cancellation of contract by and between SAFEBuilt and the Town of Clarkdale Sent via email on 2-5-19 to smartin@safebuilt.com Dear Scott: Due to unforeseen circumstances caused by the demobilization of the remediation contractor working on Freeport-McMoRan Inc.’s United Verde Soil Program project, we must cancel our contract with your firm effective immediately. Based on a telephone conversation earlier today with your representative Mr. Chad Johnson, the Town will pay for services through March 15, 2019. We appreciate your reasonable approach on this matter. Please invoice me for services through March 15th, and we will process the invoice promptly. It has been a pleasure working with your firm and we understand the cancellation of this contract will necessitate the renegotiation of a new contract at such time as we need contract inspection services again. If you need more information or have more questions, please feel free to call my office any time at 928-639-2500. Yours truly, Jodie Filardo Community & Economic Development Director Ecc: Gayle Mabery, Town Manager Ecc: Joseph Brunner, Director, Discontinued Operations, Freeport-McMoRan Inc. Ecc: Beth Escobar, Planning Manager Ecc: Paul Grasso, Building Official Ecc: Chad Johnson, SAFEBuilt Litigation SAFEbuilt Arizona, LLC has not had any litigation or arbitration claims during the past years. Fountain Hills, AZ July 7, 2022 | 5:00 pm SAFEbuilt Arizona, LLC RFP-2022-022 Building Inspection Services PORTAL SUBMITTAL Shani Canillas Account Manager 970.294.6801 scanillas@safebuilt.com Eric Pendley Regional Director of Operations 970.977.6270 ependley@safebuilt.com Tab 2 Experience & Qualifications 9 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Experience & Qualifications We have extensive experience working with communities of similar sizes with similar needs. Even though the services you require are as-needed, our team is ready to seamlessly provide you with qualified building inspection professionals to help maintain your positive image with residents and business. As with any company that provides third-party service personnel to their clients, SAFEbuilt thoroughly screens prospective personnel for the right experience and qualifications to perform their assigned duties. With nearly 30 years of industry experience, we are very familiar with each position’s requirements within the different building services disciplines. We look for candidates with a well-rounded background in the building services and construction industries, a passion for the work, and a drive to get the job done correctly and on schedule. We actively pursue self-motivated, personable candidates who can easily integrate into any team setting. SAFEbuilt recognizes that our quality personnel are our greatest asset and distinguishes us from other building department services companies. Along with recognizing service excellence with monetary compensation and other rewards, we invest heavily in our personnel’s training, certification, and licensure, which increases employee satisfaction and tenure with our company. SAFEbuilt’s leadership philosophy includes believing that a properly structured recruitment and training program makes good employees even better and provides the momentum to drive them to excel. Working together with the Town, we will deliver services efficiently and accurately, meeting the needs presented in the RFP. All proposed staff are current on all certifications and are fully compliant with continuing education requirements. In addition, our team is well-versed in understanding and working in compliance with the following: ✔2018 International Building Code (IBC) ✔2017 National Electrical Code (NEC) ✔2018 International Energy Conservation Code (IECC) ✔2018 International Fire Code (IFC) ✔2018 International Fuel Gas Code (IFGC) ✔2018 International Mechanical Code (IMC) ✔2018 International Plumbing Code (IPC) ✔2018 International Residential Code (IRC) with appendix G ✔2018 Uniform Swimming Pool, Spa and Hot Tub Code ✔1997 Uniform Administrative Code ✔1997 Uniform Code for the Abatement of Dangerous Buildings “Commercial development is key to our growth, so having a partner like SAFEbuilt to help keep our commercial projects moving without sacrificing our safety standards has been incredibly valuable.” – Brian Krajewski, County Board Member, DuPage County, IL 10 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Similar Projects SAFEbuilt has 30+ years of experience providing building department and planning services to municipalities throughout the country. SAFEbuilt is pleased to present the following projects that are similar in size, scope, and complexity with the services requested by the Town of Fountain Hills. NOTE: All contracts are ongoing. We have listed the start/end dates of previous contracts with these municipalities to comply with the Town’s requirement for “completed” projects. Supplemental Services for the Town of Fountain Hills, AZ 2022 – Ongoing Building Inspection Services Peter Johnson, Building Official/Building Lead 16705 E Avenue of the Fountains, Fountain Hills, Arizona 85268 480.816.5127 | pjohnson@fh.az.gov Supplemental Services for the City of Boise, ID 2021 – 2022 | 2022 – Ongoing Building Inspections, Remote Plan Reviews, Fire Plan Reviews, & Permit Technician Services Jason Blais, Building Official 150 N Capitol Boulevard, Boise, Idaho 83702-5920 208.608.7097 | jblais@cityofboise.org Supplemental Services for the City of Nampa, ID 2019 – 2020 | 2020 – 2021 | 2021 – Ongoing Building Inspections and Plan Review Services Patrick Sullivan, Director of Building Safety 411 3rd Street South, Nampa, Idaho 83651 208.468.5445 | sullivanw@cityofnampa.us Full Building Department Services for the City of Castle Pines, CO 2008 – 2010 | 2011 – 2014 | 2014 | 2015 | 2016 – 2017 | 2017 – 2019 | 2019 – 2021 | 2021 – Ongoing Building Inspections, Plan Review, Building Official, As-Requested Code Enforcement, Permit Technician, Disaster and Emergency Response, As-Requested Planning Consultation, and Permitting Software Services Sam Bishop, Community Development Director/Lead 7501 Village Square Drive, Suite 100, Castle Pines, Colorado 80108 303.705.0225 | sam@castlepinesco.gov Full Building Department Services for the City of Northglenn, CO 2009 – 2011 | 2011 – 2013 | 2013 – 2016 | 2016 – 2019 | 2019 – Ongoing Building Inspection, Plan Review, Building Official, Permit Technician, and On-Call Planning Services Brook Svoboda, Community Development Director 11701 Community Center Drive, Northglenn, Colorado 80233 303.450.8937 | bsvoboda@northglenn.org Fountain Hills, AZ July 7, 2022 | 5:00 pm SAFEbuilt Arizona, LLC RFP-2022-022 Building Inspection Services PORTAL SUBMITTAL Shani Canillas Account Manager 970.294.6801 scanillas@safebuilt.com Eric Pendley Regional Director of Operations 970.977.6270 ependley@safebuilt.com Tab 3 Key Positions 12 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Key Positions SAFEbuilt is pleased to offer the Town of Fountain Hills the continued support of Mr. Troy Steward. Mr. Steward began supporting the Town in May of this year. We have augmented our team to include two additional Building Inspectors to ensure the Town receives prompt support when needed. Troy Steward Lead / Inspection Manager Robert Elefante Building Inspector Lyle Yoder Building Inspector Proposed Team for the Town of Fountain Hills Figure 1. Proposed Team for the Town of Fountain Hills The following summarizes the experience and qualifications of each member of our proposed inspection team. Their full résumés are presented in this proposal response, beginning on page 22. Mr. Troy Steward Lead / Inspection Manager Mr. Solomon “Troy” Steward will lead the proposed team of inspectors in the role of Inspection Manager. Mr. Steward is currently supporting the Town with Building Inspection on the active contract and will continue to provide this service for the next contract as well. Mr. Steward has 22 years of experience in building services. Prior to joining SAFEbuilt earlier this year, Mr. Steward was most recently a Building Inspector for Maricopa County. Other previous positions he has held include Route Technician/Inspector for Chase Bank and Certified Building Inspector with the City of Surprise, AZ. Mr. Steward’s ICC certifications are shown in the “Team Certifications Matrix” on page 13. Although they are in “inactive” status, Mr. Steward has a Home Inspector registration from the AZ Board of Technical Registration; a B General Residential Contractor license, and B-2 General Small Commercial Contractor license from the AZ Registrar of Contractors. Additionally, Mr. Steward earned a B-5 Commercial/ Residential Building Inspector Certificate from the Universal Building Code Association in 1998. Mr. Lyle Yoder Building Inspector Mr. Yoder joined the SAFEbuilt team this year and brings 29 years of experience in construction and building services to his role as Building Inspector for the Town. A few recent positions Mr. Yoder held include Construction Manager, Building Inspector for Maricopa County, AZ, and Construction Superintendent for D.R. Horton. Mr. Yoder has earned two ICC certifications (shown in the “Team Certifications Matrix” on page 13). He recently attended a training class offered by the Arizona Building Officials Association on the topic of Inspections for Fire-Related Construction Applications. 13 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Mr. Robert Elefante Building Inspector Mr. Elefante also joined SAFEbuilt earlier this year and has nine years of experience in construction and building services. He will support the Town in the role of Building Inspector. Prior to joining SAFEbuilt, Mr. Elefante has held Building Inspector positions with the Cities of Tuscon, AZ, and San Luis Obispo, CA. Among his previous positions, Mr. Elefante worked as a Building Inspector for Interwest Consulting Group, a subsidiary of SAFEbuilt. Mr. Elefante’s ICC certifications are shown in the following matrix. He has also earned a Fire Technology Certificate from Mt. San Jacinto College. Team Certifications Matrix Tr o y S t e w a r d Ro b e r t E l e f a n t e Ly l e Y o d e r ICC Certifications Building Inspector ✔ ✔ CALGreen Inspector/Plans Examiner ✔ Commercial Building Inspector ✔ Commercial Mechanical Inspector ✔ Fuel Gas Inspector ✔ Residential Building Inspector ✔ ✔ Residential Plumbing Inspector ✔ ✔ ✔ Other Certifications Fire Technology Certificate ✔ UBC B-5 Commercial/Residential Building Inspector ✔ “SAFEbuilt has provided excellent service while maintaining the integrity that we would expect from one of our own employees. In an industry where it’s impossible to please everyone, SAFEbuilt is changing that narrative. The attention given to customer needs is a priority and it shows.” – Lee Sudduth, Community Services Director, City of Hapeville, GA Fountain Hills, AZ July 7, 2022 | 5:00 pm SAFEbuilt Arizona, LLC RFP-2022-022 Building Inspection Services PORTAL SUBMITTAL Shani Canillas Account Manager 970.294.6801 scanillas@safebuilt.com Eric Pendley Regional Director of Operations 970.977.6270 ependley@safebuilt.com Tab 4 Project Approach 15 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Project Approach We have taken careful consideration of the Town’s needs. We can ensure that all new members will integrate seamlessly into the Town’s processes. Our team of qualified professionals understands the Town’s objectives, and they know what it takes to efficiently and successfully facilitate building inspection services. Through effective implementation and established deliverables, they will help guide you through a transition process that meets your timeline and service expectations. Contract Management Plan Our Contract Management Plan begins with applying our philosophy of Plan, Execute, Control, Optimize (PECO). The PECO framework (Figure 2) is based on our team’s experience and industry best practices endorsed by the Project Management Institute. We identify, prioritize, allocate, manage, and control the work requirements through this singular, integrated method. Using the PECO framework, the SAFEbuilt team delivers a contract management approach that combines the right people, processes, and tools to perform the Scope of Work requirements. Our support of the Town requires a methodology to operate and maintain all service areas efficiently. The SAFEbuilt team’s methodology is structured to streamline our resources and provide responsive services. Successful execution of services begins with a responsive team structure that can anticipate and address resource needs. Approach to Partnership Our partnership approach centers on fostering open communication between our firm and the Town. Before receiving the first assignment, we will meet with Town staff to verify local code policies and review documentation procedures, inspection checklist items, notification protocols, and scheduling processes. Our team is committed to maintaining regular communication with Town staff to stay current with code interpretations and policies. Ongoing communication improves our ability to quickly respond to any issues that may arise during inspection activities. We value the importance of the Town’s projects and are committed to meeting all project service delivery deadlines. Under the Town’s direction, we will diligently document and report all inspection findings, tracking information, and other reports, as required by the Town. Our team members will be available to meet with Town staff via phone or in-person to address questions that may arise during the contract and project life cycles. We will be accessible to project stakeholders, which is essential to ensuring prompt decision-making. As such, our firm commits to responding to all inquiries within one business day. We encourage discussions via an in-person meeting, teleconferencing, or web-meeting formats as necessary to achieve the most rapid results. Further, SAFEbuilt believes that maintaining frequent and consistent check-ins between the account management and operations teams and our clients is key to the early identification of performance risks and contributes to contract success. Your account management team will reach out to the Town to discuss the best method and Figure 2. The PECO framework delivers a contract management approach that com- bines the right people, processes, and tools to perform contract work. OPTIMIZE EXECUTE PLAN CONTROL dire c t i o n & c o o r d i n a t i o n direction & coordination information dire c t i o n , c o o r d i n a t i o n , & in f o r m a t i o n directcoordination daily status report 16 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US frequency for these check-in meetings. These meetings will allow both parties to manage the resources tactfully and develop the best contractor-client relationship. We can also estimate and evaluate possible outcomes and make the necessary changes during this process. Quality Control SAFEbuilt takes pride in meeting clients’ needs while maintaining a high level of quality control. Our approach is proactive—we prevent quality issues to the greatest extent possible and prepare for other situations in advance by mitigating risk. To ensure quality, SAFEbuilt has implemented a Quality Control (QC) program where our Inspection Manager and Operations Manager will perform random quality evaluations of our staff throughout the year. SAFEbuilt’s QC activities include: • Standardized processes for intake, completion of returned work, e-mail correspondence, inspection reports and other items to ensure consistency and client satisfaction. • Our Inspection and Operations Managers conduct periodic reviews to ensure completeness, accuracy, and consistency of work performed. • Staff feedback as necessary for any discrepancies or improvements needed. • Staff is paid to attend both internal and external training to grow professionally and improve skill sets. • The Account Manager and Operations Managers will conduct periodic check-ins with clients for feedback on satisfaction with work performed and services provided. • Sending periodic customer satisfaction surveys for feedback on work performed and services provided. • SAFEbuilt uses check-ins and surveys to find possible opportunities to improve client satisfaction, work performed, and services provided, as necessary. Given SAFEbuilt’s comprehensive approach to contract management and service delivery, the probability of risk is low. As part of our QC&A process, we ensure that SAFEbuilt standards are met. We involve the Town in the entire process to maintain transparency. Staff receives training regularly to stay up-to-date on current codes, ordinances, amendments, and regulations. We also mitigate risks through our ability to direct additional resources from our corporate operations or regional operations for immediate staffing needs. To further mitigate risk, we follow an iterative process comprised of planning implementation and progress monitoring. The steps are shown in Figure 3. Our plan for program success is to eliminate or reduce the risks identified. This goal may be achieved by adjustments in technical steps and schedule. If necessary, the next step is minimizing the likelihood and impact of risk. It is unlikely for risk to reach this level. Yet, we are prepared to implement additional mitigation strategies, such as switching out staff, reviewing best practices, and adjusting schedules. Figure 3. SAFEbuilt’s risk mitigation process is used throughout the contract for early identification and mitigation of risks. PLAN ASSESSIMPACT IDENTIFY ANALYZE low r i s k e v e n t s a r e t r a c k e d high e r r i s k e v e n t s a r e e l i m i n a t e d , man a g e d , o r r e d u c e d risk events & relationships are defined risks ranked from “most” to “least” critical prob a b i l i t i e s & c o n s e q u e n c e s of ris k e v e n t s a r e a s s e s s e d 17 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Scheduling and Staff SAFEbuilt will meet with the Town before the contract starts to establish a customized inspection notification process. SAFEbuilt offers next-day inspections for any request received by 4:00 PM on the previous business day. We offer weekend and after-hours inspections on a scheduled basis for an additional fee. We will, of course, make ourselves available to respond to inspections related to emergencies. Once assigned to a project, our team members remain dedicated to that project until completion. We will provide the Town with a call list with each team member’s mobile phone numbers and email addresses at contract start. Further, we commit to being available for any required in-person meetings the Town deems necessary. What the Town Can Expect from their SAFEbuilt Team Our staff’s quality and training, combined with our proven business practices and a core commitment to customer satisfaction, ensure each client receives the highest levels of contract performance, professionalism, and responsiveness in the industry. All SAFEbuilt Building Inspectors will: • Wear/display proper identification. • Possess/maintain required certifications and are experienced in performing compliant inspections, plan reviews, and permitting. • Be knowledgeable of the principles of design, local zoning, and topographical site plans. • Remain proficient and knowledgeable of federal, state, and local laws, rules, regulations, directives, codes, and ordinances applicable to their work. • Offer exemplary customer service while performing their duties and interacting with Town personnel, construction firms, and the public. • Attend meetings as required by the Town. • Always exhibit professional and courteous conduct and an appropriate appearance during interactions— both on and off the job site. • Meet all job safety requirements and OSHA safety standards. • Be available to support the Town every Monday through Friday during regular business hours, except for Town-recognized holidays. We will delegate members of the SAFEbuilt team to respond to emergency support situations. Building Inspectors for all trades and disciplines spend most of their workday in the field, working with Town staff, contractors, builders, owners, and the general public. As such, they must be helpful, patient, and above all, very knowledgeable of the relevant codes and ordinances. SAFEbuilt’s Building Inspectors are trained to take an educational approach to their duties when working with our clients and their customers. The following highlights some of the duties and expectations for our Building Inspectors: • Reviewing all plans submitted before each inspection. • Adhering to scheduled inspection times. • Verifying approved plans are onsite and verifying construction has not deviated from approved plans. • Verifying on-site conditions are consistent with the appropriate records for square footage, setbacks, heights, and other requirements that may be applicable. • Performing field inspections in accordance with the Town’s adopted ordinances, codes, and standards. 18 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US • Using inspection checklists and codebooks during inspections. • Providing all required inspections and recording the results for those inspections. • Identifying code violations per the national and state building codes and local ordinances and amendments. • Working with contractors to facilitate appropriate remedies for code violations. Alternative Approaches We appreciate and take this opportunity to introduce you to an alternative approach to inspection service delivery and to let you know about a cost-savings opportunity for the Town. Remote Virtual Inspections SAFEbuilt offers remote virtual inspections (RVI) for your community’s convenience and safety. Completing inspections remotely saves time and money. Rather than waiting for an inspector to arrive from another job, they can be there in moments to efficiently walk residents and contractors through the inspection. RVI’s also help reduce the number of people on a job site, supporting social distancing and public health. Our teams currently use RVIs in communities in Colorado, Georgia, and Michigan. Our Operations team, in partnership with I.T., selected Blitzz Remote Visual Assistance Software as our virtual tool to complete these inspections. This allows us to easily connect with residents and contractors without downloading an app or logging in. Inspectors can control recording and taking photos to complete inspections like water heaters quickly, electrical reconnects and service upgrades, and residential re-inspections. We recommend RVIs to our on-call clients to help them maximize their SAFEbuilt-provided inspection team, as they typically take less time than on-site inspections, and there is no travel time between jobs involved. We welcome an opportunity to discuss implementing this capability for the Town. Plan Review Services While reviewing the requirements of the RFP, we were surprised that plan review services were not part of the Scope of Work. As the Town is well-aware, SAFEbuilt currently supports the Town with plan review services under a separate contract that expires at the end of this year. If the Town would consider combining building inspections and plan reviews into a single contract, we can offer a discount on our fees. Fountain Hills, AZ July 7, 2022 | 5:00 pm SAFEbuilt Arizona, LLC RFP-2022-022 Building Inspection Services PORTAL SUBMITTAL Shani Canillas Account Manager 970.294.6801 scanillas@safebuilt.com Eric Pendley Regional Director of Operations 970.977.6270 ependley@safebuilt.com Tab 5 Pricing 20 Fountain Hills, AZ | RFP-2022-022 | Building Inspection Services MAKING A DIFFERENCE WHERE YOU NEED US Pricing SAFEbuilt’s pricing is tailored to each contract. We work with our community partners to establish quality rates for the services we provide. Prices are all-inclusive. All overhead materials and equipment—such as tablets, codebooks, mobile phones, and professional attire—are included in the proposed fee. Service Fee Building Inspector (all trades)$95.00 per hour EXHIBIT B TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SAFEBUILT ARIZONA, LLC [Quote or Work Order] See following pages. COUNCIL: Town of Fountain Hills Contract 2023-033 SafeBuilt of Az Interim Agreement Report 2022-09-19 Created:2022-08-15 By:Robert Durham (rdurham@fountainhillsaz.gov) Status:Out for Approval Transaction ID:CBJCHBCAABAAc-7QCent5_O6X-V7phuXFy6f6W1PlQpD Agreement History Agreement history is the list of the events that have impacted the status of the agreement prior to the final signature. A final audit report willbe generated when the agreement is complete. "COUNCIL: Town of Fountain Hills Contract 2023-033 SafeBuilt of Az" History Document created by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-15 - 3:53:50 PM GMT- IP address: 184.178.192.162 Document emailed to Shani Canillas (scanillas@safebuilt.com) for signature 2022-08-15 - 3:54:21 PM GMT Email viewed by Shani Canillas (scanillas@safebuilt.com) 2022-08-16 - 4:20:53 PM GMT- IP address: 174.231.64.114 Document e-signed by Shani Canillas (scanillas@safebuilt.com) Signature Date: 2022-08-16 - 4:36:23 PM GMT - Time Source: server- IP address: 174.231.64.114 Document emailed to Robert Durham (rdurham@fountainhillsaz.gov) for approval 2022-08-16 - 4:36:26 PM GMT Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-16 - 4:36:46 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-19 - 4:49:16 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-22 - 4:39:25 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-25 - 4:40:55 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-28 - 6:01:39 PM GMT- IP address: 154.6.18.17 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-08-31 - 4:39:07 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-03 - 4:39:44 PM GMT- IP address: 154.6.18.136 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-06 - 4:38:59 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-09 - 4:52:32 PM GMT- IP address: 154.6.18.120 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-12 - 4:38:47 PM GMT- IP address: 184.178.192.162 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-15 - 4:42:45 PM GMT- IP address: 154.6.18.218 Email viewed by Robert Durham (rdurham@fountainhillsaz.gov) 2022-09-18 - 4:39:09 PM GMT- IP address: 154.6.18.214 ITEM 7. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-44, abandoning the 20' Public Utility and Drainage Easement along the north side of 17012 E Jacklin Drive (Application A22-000010) Staff Summary (Background) This is a proposal to abandon the pre-incorporation 20' Public Utility and Drainage Easement along the northern property line of Plat 401-A, Block 1, Lot 13A (17012 E Jacklin Drive).  Jaime and Lynne Henifin, the owners of the property, are planning future development which will encroach into the existing easement.  Staff have reviewed the site to determine the potential on-site drainage issues in addition to the Town's general interest in the easement.  There is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that the owner of the lot is required to pass the developed flows generated by the upstream lots across their property.  All public utilities have approved the abandonment of this easement. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2022-44. SUGGESTED MOTION MOVE to adopt Resolution 2022-44.   Attachments Vicinity Map  Aerial Photo Map  Exhibit A: Survey  Resolution 2022-44  Form Review Inbox Reviewed By Date Development Services Director John Wesley 10/04/2022 01:08 PM Town Attorney Aaron D. Arnson 10/05/2022 02:15 PM Town Manager Grady E. Miller 10/06/2022 09:37 AM Form Started By: David Janover Started On: 09/21/2022 09:21 AM Final Approval Date: 10/06/2022  BEELIN E H W Y SHEA BLVD PAL I S A D E S B L V D SAGUARO BLVD SAG U A R O B L V D PALIS A D E S B L V D PALISA D E S B L V D SA G U A R O B L V D FO U N T A I N H I L L S B L V D McDOWELL M O U N T A I N R D FOUNTA I N H I L L S B L V D SUNR I D G E D R EL L A G O B L V D AVEN U E O F T H E FOUN T A I N S PAN O R A M A D R CR E S T V I E W D R SIERRA M A D R E GRANDE BL V D G O L D E N E A G L E B L V D E A G L E R I D G E D R E A G L E R I D G E D R VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is Ar i z o n a F O U N TAIN HI L L S T OWN OF INC. 1989 TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FO R T M c D O W E L L Y A V A P A I N A T I O N SALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 17012 E JACKLIN DR A22-000010 DEVELOPMENT SERVICES · · · SITE PLAN A ll that is A r i z o n a F O U N T AIN HI L L S TOWN OF INC. 1989 2020 AERIAL ZONING: R1-10 JAC K L I N D R EXHIBIT "A" TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT LOT 13A A22-000010 RESOLUTION 2022-44 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE- INCORPORATION 20' PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE NORTHERN PROPERTY LINE OF PLAT 401-A, BLOCK 1, LOT 13A (17012 E JACKLIN DRIVE) FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 400 OF MAPS, PAGE 49 WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the governing body of real property located in the Town of Fountain Hills (the “Town”), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the certain public utility and drainage easement, located at the NORTHERN property line of Plat 401-A, Block 1, Lot 13A (17012 E Jacklin Drive) Fountain Hills, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 400 of Maps, Page 49, and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills October 18, 2022. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney ITEM 7. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approving staff to seek and apply for grants from the Federal Emergency Management Agency (FEMA).   Staff Summary (Background) Staff continuously looks for opportunities to improve the Town Drainage systems with a focus on preventing flooding to homes, businesses and our roadways.  Due to recent weather changes, storm events are becoming more frequent with increased intensity, often times resulting in erosion of our washes and deposition of sediment onto our roadways.   Staff has reviewed the criteria for the 2022 Building Resilient Infrastructure and Communities Program (BRIC), which is a grant program administered by the Federal Emergency Management Agency (FEMA).  One of the guiding principles of this grant program is to "support state and local governments, tribes and territories through capability- and capacity-building to enable them to identify mitigation actions and implement projects that reduce risks posed by natural hazards. Town staff has identified a potential project that might be a good candidate for this grant program.  In the past, the McDowell Mountain Road crossing at Escalante Wash has experienced the deposition of an approximate 3 foot layer of sediment that was washed out onto the roadway.  This route is critical for emergency vehicle access to and from the Rio Verde Community, and must remain passable at all times.  To prevent future such events, staff requests authorization to apply for grant funding through the BRIC Program to address this low-flow crossing by constructing a culvert with adequate flow capacity and raising the elevation of the road. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement. Risk Analysis Failure to address these flooding issues could result in delayed response time for first responders. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval to seek and apply for grants. SUGGESTED MOTION MOVE to approve staff to seek and apply for grants from the Federal Emergency Management Agency (FEMA).   Fiscal Impact Fiscal Impact:N/A Budget Reference:N/A Funding Source:Capital Projects If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 10/04/2022 05:17 PM Finance Director David Pock 10/05/2022 02:16 PM Town Attorney Aaron D. Arnson 10/05/2022 02:38 PM Town Manager Grady E. Miller 10/06/2022 11:07 AM Form Started By: Justin Weldy Started On: 10/04/2022 11:54 AM Final Approval Date: 10/06/2022  ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: To approve the recommendations for the appointment of members to the Town's Boards, Commissions, and Committees.  Staff Summary (Background) The Council Subcommittees for the Towns Boards, Commissions, and Committees conduct interviews and make recommendations for membership based on the term expiration, vacancies from resignations, or changes in membership eligibility status. Appointments are made each year in April and October. The October recruitment consists of vacancies on the Strategic Planning Advisory Commission, Board of Adjustment, the Sister Cities Advisory Commission, the McDowell Mountain Preservation Commission, the Community Services Advisory Commission, and creation of the Historical and Cultural Advisory Commission.  Strategic Planning Commission The vacancy on this commission is due to the resignation of John Clarke. The appointment to this commission will be for a partial term.  Board of Adjustment Two board members’ terms will expire at the end of October; both members have requested reappointment. Sister Cities Advisory Commission Two board members’ terms will expire at the end of October; one member has requested reappointment, and the other has elected to term out of their appointment. McDowell Mountain Preservation Commission One board member’s term will expire at the end of October; they have requested a reappointment. Community Services Advisory Commission The vacancy on this commission is for a youth member. The youth member has a one-year term.   Historical and Cultural Advisory Commission The creation of this commission was approved at the June 6, 2022, Town Council meeting. The creation of this committee calls for seven members. The terms for this commission are three-year terms. However, for the initial appointments, those term limits will be staggered with three members serving a three-year term, three members serving a two-year term, and one member serving a one-year term. Term limits for each member appointed will be determined by lot at their first meeting.  The Council Subcommittee for the Boards, Commissions, and Committees held a meeting on October 3, 2022, to conduct interviews of residents who applied for the vacancies on the Towns Boards, Commissions, and Committees and made recommendations for appointment to those committees. Related Ordinance, Policy or Guiding Principle Chapter 2A of the Town Code. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Recommendations to the Mayor have been made by the Council Subcommittees A and B. Staff Recommendation(s) To approve the Council Subcommittee recommendations for appointments to the Boards, Commissions, and Committees, as well as recommendations by staff for the remaining boards and commissions, as follows: Community Services Advisory Commission Appoint _________________________ for a term from 11/1/2022 to 6/30/2022 Historical and Cultural Advisory Commission (new commission) Appoint the following seven members, for a term to be decided by lot at the first meeting of the commission. __________, __________, __________, __________, __________, __________, and __________. Make the following reappointments of citizens to the boards and commissions as follows: Board of Adjustment Reappoint __________________________for a full term (11/1/2022 to 10/31/2025) Reappoint __________________________for a full term (11/1/2022 to 10/31/2025)  Sister Cities Advisory Commission Reappoint _________________________ for a full term (11/1/2022 to 10/31/2022)   McDowell Mountain Preservation Commission Reappoint _________________________for a full term (11/1/2022 to 10/31/2022)  Strategic Planning Advisory Commission Appoint ___________________________ for a partial term (11/1/2022 to 4/30/2024) To fill the vacancy at a future date for the following commission: Sister Cities Advisory Commission Appointment for a Full term (11/1/2022 to 10/31/2022)  SUGGESTED MOTION MOVE to approve the Council Subcommittees recommendations for the appointment of members to the Town's boards, commissions, and committees as presented:   Form Review Inbox Reviewed By Date Finance Director David Pock 10/06/2022 03:41 PM Town Attorney Aaron D. Arnson 10/06/2022 08:15 PM Town Manager Grady E. Miller 10/06/2022 09:05 PM Form Started By: Linda Mendenhall Started On: 10/05/2022 12:29 PM Final Approval Date: 10/06/2022  ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND DIRECTION: Possible amendments to Town Code Article 8-6, Vacation Rentals, to incorporate additional regulations as allowed by changes to state statutes. Staff Summary (background) Legislative Background In 2016, the Legislature enacted a strict short-term rental statute (A.R.S. 9-500.39) that preempted cities and towns from regulating short-term rentals except in very narrow circumstances. The statute has been modestly amended since then. Town Code Article 8-6, Vacation Rentals, currently provides requirements for the registration of vacation rental homes and places some limits on allowed uses. In the last legislative session, the Legislature approved SB 1168, which amended A.R.S. 9-500.39 to return some authority to local governments. Specifically, SB 1168 allows local governments to create a short-term rental registration database and/or a permitting process and expands regulatory authority for local governments. AZ League of Cities and Towns Model Ordinance In response to SB 1168, the Arizona City Attorney Association, in coordination with the Arizona League of Cities and Towns, formed a workgroup that produced two versions of a model ordinance (one for registration only and another for registration and permitting) that incorporates the changes authorized by the Legislature. Recognizing the number of complaints the Town has received from residents over the years regarding short-term rentals, staff is presenting the second version of the model ordinance, which establishes both a registration database and a permitting process for short-term rentals within Fountain Hills. Sections 1 - 10 and 12 - 16 of the attached proposed ordinance follow the model ordinance prepared by the League. These sections cover the following topics:  Purpose1. Definitions2. Required permit3. Emergency contact4. Prohibited uses5. Neighborhood notification6. Advertising requirements7. Posting on the property8. Insurance9. Background checks10. --11. Permit Suspension12. Enhanced penalties13. Appeals14. Judicial Relief15. Severability16. Town of Paradise Valley Ordinance Provisions Prior to passage of SB 1168, and prior to the creation of the League's model ordinance, the Town of Paradise Valley amended its regulations to address short-term rentals. Many of the Paradise Valley provisions survived a recent SB 1487 challenge and review by the Attorney General's Office, although they go beyond what is explicitly allowed by A.R.S. 9-500.39. Section 11 of the attached proposed ordinance includes those heightened standards adopted by Paradise Valley that survived SB 1487 challenge and Attorney General review. Section 11, "Standards and Operating Requirements; Health and Safety," includes standards regarding:  Timely response to complaints1. Requirement that the owner explain the rules to occupants at check-in2. Proper storage of trash and refuse3. For rules to be placed next to entry doors for easy view of occupants4. Provision of smoke and carbon monoxide detectors5. Provision of fire extinguishers6. Display of a fire safety and emergency evacuation map7. Regular replacement of HVAC filters8. A record of cleaning consistent with CDC guidelines9. A record of regular pest control treatment10. Industry's Proposed Revisions to Model Ordinance After the drafting and publication of the League model ordinance, AirBnB suggested changes to the model ordinance. The League and Town staff do not believe it is necessary to amend the model ordinance to include the industry's requests. The Industry's proposed revisions are attached with highlights and strike throughs, for the Council's reference.  Related Ordinance, Policy or Guiding Principle Article 8-6, Vacation Rentals  Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff has provided the Council with a draft ordinance for discussion purposes only. Although no recommendations are being made at this time, staff will share their opinions on the potential upsides and drawbacks of adopting certain sections of the proposed ordinance. Following Council discussion and direction, staff will prepare an ordinance to bring back for action at a later date. SUGGESTED MOTION No action is to be taken at this time. Attachments Draft Ordinance - Short Term Rentals  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 10/06/2022 09:46 AM Town Attorney Aaron D. Arnson 10/06/2022 08:15 PM Town Manager Grady E. Miller 10/06/2022 09:38 PM Form Started By: John Wesley Started On: 10/06/2022 08:55 AM Final Approval Date: 10/06/2022  ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Community Services Prepared by: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  DISCUSSION AND POSSIBLE DIRECTION: Approving in concept the control room building for the Sanitary District ASR Well #1 Building Addition at Fountain Park. Staff Summary (Background) The Fountain HIlls Sanitary District (FHSD) has three (3) Aquifer Storage and Recovery (ASR) wells constructed within the boundaries of Fountain Park. The well control equipment is housed in three separate, buried metal vaults on top of each well location. Due to the age of the vaults and surrounding soil conditions, the vaults grew severely corroded, creating hazardous working conditions for District staff. To improve safety and meet the growing needs of the Sanitary District, two ASR well projects were conducted in 2018 and 2019 to construct above-ground facilities. In conjunction with the ASR well upgrades, two new restroom locations were added to Fountain Park to create a win-win for the community and camouflage the necessary building sites.  Currently, the remaining ASR well site (site #1) is the last location to be addressed. Due to its placement within the Great Lawn, this site presents a unique set of challenges as it is located within the popular event space that hosts many community celebrations. Over the last year, Town staff and FHSD staff have evaluated multiple concepts that address the needs of the district while not impeding the use of the Great Lawn and minimizing other impacts. Through this effort, all parties agreed that a control room building and shaded overlook concept was the best solution. Located adjacent to Saguaro Blvd, the building would have a limited footprint and be oriented as to not impede the view of the fountain. The building would function solely for FHSD purposes and not include a restroom, but have several public amenities such as a water fountain. In order to offer a contribution to the park and its many users, a shaded seating area will be added, allowing walkers a place for respite and a picturesque view of the park.  Below is an outline of the benefits and considerations discussed between Town and FHSD.  Benefit both the District and Fountain Park Users: 1. Provides the needed above-ground control room for a critical component of the RW management system  2. Allows access without crossing pedestrian traffic 3. A bit of shade and rest spot along the western walking path 4. Drinking fountain 5. Designated view spot District Goals: 1. Move the below-ground well up to an at-grade, walled, and roof structure. 2. Improve District access to the well control equipment. 3. Eliminate the District having to drive on the grass or shut-down public walkways to do its required maintenance. 4. District will work with Town Staff, FHCCA, and Public Arts Committee to relocate the Presidential Statues Park Considerations: 1. Disc golf course. 2. The number and type of events in the "Great Lawn" area. 3. Existing irrigation system. 4. The well control building is needed within 50-100 feet of the current well location. 5. Flood channels and flooding potential. 6. Maintain walking paths in the impacted areas. One additional concern raised was the impact on the presidential statue area in the project vicinity.  This art collection features six presidential bronze statues as well as the Bill of Rights which will all need to be removed, stored, and relocated as part of this effort. FHSD staff have taken this into consideration and have worked with the Public Art Committee to develop a mutually agreeable layout that suits the needs of both groups. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Public Art Committee (PAC) statement for approval of the Sanitary District Project: The Presidential relocation Project presentation was made to the Public Art Committee on September 6, 2022, by Dana Trompke, Fountain Hills Sanitary District Manager, concerning the relocation of the sculptures located on the West side of Fountain Park, fondly referred to as Fount Rushmore. The new location of the sculptures along with the proposed shade structure was unanimously approved. If requested by the district or the town, the PAC members will be happy to assist with any final positioning of the sculptures. Staff Recommendation(s) Staff recommends approval of Sanitary District ASR Well #1 New Location at Fountain Park. SUGGESTED MOTION MOVE to approve Sanitary District ASR Well #1 Location at Fountain Park and direct the Town Manager to execute all applicable contracts and agreements.    Attachments Fountain Hills Sanitary District - Well Control Building  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 10/05/2022 03:03 PM Finance Director David Pock 10/05/2022 03:10 PM Town Attorney Aaron D. Arnson 10/05/2022 03:33 PM Town Manager Grady E. Miller 10/06/2022 09:36 AM Form Started By: Patti Lopuszanski Started On: 10/04/2022 10:03 AM Final Approval Date: 10/06/2022  Presented to Town Council October 18, 2022 Well Control Building in Fountain Park Fountain Hills produces: •2,000,000-gals Wastewater per day •710,000,000-gals Wastewater per year 100% wastewater is collected, treated and converted to recycled water With NO discharges Recycled Water Use: 15% -Internal Uses 70% -Golf Courses 15% -Town Parks Recycle Water Supply and Demand Do Not Align - 20 40 60 80 100 120 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Mi l l i o n G a l l o n s RW Demand RW Supply Excess Water in Winter is Stored in underground wells for use in Summer In 2000, Three wells were constructed in underground vaults around Fountain Lake In 2019, Above Ground Control Rooms Were Built for Two of the Wells and Included Public Restrooms Well #1 – Below Ground Vault Electrical Service The Third Well in Park Needs an Above Ground Control Room District will work with Town Staff, FHCCA , and Public Arts Committee to relocate the Presidential Statues The Goal of the Project is to benefit both the District and Park Users •Provides the needed above-ground control room for a critical component of RW management system •Allows access without crossing pedestrian traffic •A bit of needed shade and rest spot along the western walking path •Drinking fountain •Designated view spot •Better arrangement of the presential statues ITEM 8. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Community Services Prepared by: Rachael Goodwin, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of Contract Amendment 2022-057.1 to Artistic Land Management Landscaping, Inc. Staff Summary (Background) Staff seeks approval of Amendment No. 1 to Contract No. 2022-057 with Artistic Land Management, Inc. in the amount of $50,000 to address supplemental town-wide landscaping services. Preventative landscape removal, installation, chemical applications, and storm clean-up efforts necessitate additional funding over the standard contracted maintenance agreement.   The Town shall pay Artistic Land Management an aggregate amount resulting in an increase of $50,000 for the Fiscal Year 2023 term, amounting to $592,233. For Fiscal Year 2024 and after the amount will revert to $542,233 per term. All remaining terms and conditions of the Agreement shall remain in full force and effect. Related Ordinance, Policy or Guiding Principle  N/A Risk Analysis Preventative landscape efforts, storm clean-up and other as-needed projects must be addressed in order to safely maintain our parks, open spaces, and rights of way.  Recommendation(s) by Board(s) or Commission(s) None Staff Recommendation(s) Staff recommends the approval of Artistic Land Management Landscaping Inc. Contract Amendment 2022-057.1 SUGGESTED MOTION MOVE to approve Artistic Land Management Landscaping Inc. Contract Amendment 2022-057.1.   Attachments Artistic Land Management Amendment 2022-057.1  Form Review Inbox Reviewed By Date Community Services Director Rachael Goodwin 10/05/2022 02:55 PM Finance Director David Pock 10/05/2022 03:16 PM Town Attorney Aaron D. Arnson 10/05/2022 03:31 PM Town Manager Grady E. Miller 10/06/2022 09:40 AM Form Started By: Patti Lopuszanski Started On: 09/14/2022 08:57 AM Final Approval Date: 10/06/2022  1 Contract No. 2022-057.1 FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ARTISTIC LAND MANAGEMENT, INC. THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this “First Amendment”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Artistic Land Management, Inc., a(n) Arizona corporation (the “Consultant”). RECITALS A. The Town and the Consultant entered into a Professional Services Agreement (the “Agreement”), dated February 3, 2022, for the Consultant to provide landscaping services (the “Services”). All capitalized terms not otherwise defined in this First Amendment have the same meanings as contained in the Agreement. B. The Town has determined that it is necessary to add funds to the Agreement for additional Services for Fiscal Year 2023. C. The Town and the Consultant desire to enter this First Amendment to amend the Agreement to provide for compensation to the Consultant for the Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Consultant hereby agree as follows: 1. Compensation. The Town shall pay Consultant an aggregate amount, including all renewals), not to exceed $2,761,165 for the Services, resulting in an increase of $50,000 for the Fiscal Year 2023 term amount to $592,233. For Fiscal Year 2024 and after the amount will revert to $542,233 per term. The aggregate amount per renewal term shall not exceed $50,000 in any case unless the Agreement is affirmed and ratified via an executed amendment. All remaining terms and conditions of the Agreement shall remain in full force and effect. 2. Effect of Amendment. In all other respects, the Agreement is affirmed and ratified and, except as expressly modified herein, all terms and conditions of the Agreement shall remain in full force and effect. 2 3. Non-Default. By executing this First Amendment, the Consultant affirmatively asserts that (i) the Town is not currently in default, nor has it been in default at any time prior to this First Amendment, under any of the terms or conditions of the Agreement and (ii) any and all claims, known and unknown, relating to the Agreement and existing on or before the date of this First Amendment are forever waived. 4. Israel. Consultant certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in Ariz. Rev. Stat. § 35-393, of Israel. 5. Conflict of Interest. This First Amendment and the Agreement may be cancelled by the Town pursuant to Ariz. Rev. Stat. § 38-511. [SIGNATURES ON FOLLOWING PAGES] ITEM 8. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):   CONSIDERATION AND POSSIBLE ACTION: approving Cooperative Purchasing Agreement 2023-046 with National Auto Fleet Group. Staff Summary (Background) Due to meeting the criteria for replacement under the Council-adopted Vehicle Replacement Program Policy, two light duty vehicles for Public Works are recommended to be purchased.  The purpose of the Vehicle Replacement Program Policy is to provide an authoritative decision-making process for the evaluation, selection, and multi-year scheduling of vehicle replacements based on a projection of available fiscal resources and the vehicle’s age, mileage, engine hours and repair costs. The objectives of the program are to:   •  Ensure the timely purchase, repair and replacement of the town’s vehicles; •  Serve as a link in the town’s planning between the town’s operating and capital budgets; •  Maintain control over the town’s long-term cash flow in relation to the Town's financial capacity; and •  Ensure efficient, effective and coordinated vehicle acquisition and replacement.   Per the Vehicle Replacement Program Policy, the guidelines below will be utilized:   •  Sports Utility Vehicle (SUV): 10 years or 100,000 miles •  Sedans: 10 years or 100,000 miles •  Light Duty Truck: 10 years or 100,000 miles One of the vehicles is a replacement for the Town’s Civil Engineering Inspector.  The current vehicle was purchased in 2013.  The second vehicle is an initial purchase of a light-duty truck for the Street Superintendent. This purchase was included in the current year's budget as an approved budget supplement.  The combined replacement cost for two light duty vehicles is  $75,280.  Proceeds from the sale of the current vehicles at an auction will be deposited into the Vehicle Replacement Fund.  Related Ordinance, Policy or Guiding Principle Adopted Town of Fountain Hills Vehicle Replacement Program Policy. Risk Analysis The primary risk of delaying the vehicle replacement is excessive wear, possible vehicle breakdown, and higher maintenance costs. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approval of Cooperative Purchasing Agreement 2023-046, between the Town of Fountain Hills and National Auto Fleet Group for the purchase of two vehicles.   SUGGESTED MOTION MOVE to approve Cooperative Purchasing Agreement 2023-046, between the Town of Fountain Hills and National Auto Fleet Group, in the amount of $75,280, for the purchase of two vehicles.   Fiscal Impact Fiscal Impact:75,280 Budget Reference:Streets/Veh Repl Funding Source:Multiple If Multiple Funds utilized, list here:200 & 810 Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Cooperative Purchasing Agreement  Scope and Fee  Scope and Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 10/04/2022 05:17 PM Finance Director David Pock 10/05/2022 02:29 PM Town Attorney Aaron D. Arnson 10/05/2022 02:39 PM Town Manager Grady E. Miller 10/06/2022 11:37 AM Form Started By: Justin Weldy Started On: 09/22/2022 04:41 PM Final Approval Date: 10/06/2022  1 Contract No. 2023-046 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND 72 HOUR LLC D/B/A NATIONAL AUTO FLEET GROUP THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and 72 Hour LLC d/b/a National Auto Fleet Group, a(n) California limited liability company (the “Contractor”). RECITALS A. After a competitive procurement process, the Sourcewell, a State of Minnesota local government unit and service cooperative (the “Sourcewell”) entered into Contract RFP #091521, dated November 4, 2021 (the “Sourcewell Contract”), for the Contractor to provide Automobiles, SUVs, and Light Trucks with Related Equipment and Accessories. A copy of the Sourcewell Contract is attached hereto as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the Sourcewell Contract, at its discretion and with the agreement of the awarded Contractor, and the Sourcewell Contract permits its cooperative use by other public entities, including the Town. C. The Town and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging their cooperative contractual relationship under the State Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide Automobiles, SUVs, and Light Trucks with Related Equipment and Accessories. (the “Materials and Services”) and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and shall remain in full force and effect until June 30, 2023 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the Sourcewell Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the 2 “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the Sourcewell Contract has not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any price adjustments approved as part of the Sourcewell Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. Contractor shall provide to the Town the Services under the terms and conditions of the Sourcewell Contract, Exhibit A, and according to the specifications set forth in the Contractor’s Proposal attached hereto as Exhibit B and incorporated herein by reference. 2.1 Inspection; Acceptance. All Materials and Services are subject to final inspection and acceptance by the Town. Materials failing to conform to the requirements of this Agreement and/or the State Contract will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of non- conforming Materials or Services, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring Materials or Services into compliance and withhold the cost of same from any payments due to the Contractor. 2.2 Cancellation. The Town reserves the right to cancel any work order within a reasonable time after issuance. Should a work order be canceled, the Town agrees to reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor due to and after issuance of the work order. The Town will not reimburse the Contractor for any costs incurred after receipt of the Town notice of cancellation, or for lost profits, shipment of product prior to issuance of a work order or for anything not expressly permitted pursuant to this Agreement. 3. Compensation. The Town shall pay Contractor an amount not to exceed $75,280 (including all renewals) for the Materials and Services at the rates set forth in the State Contract and as more particularly set forth in Exhibit B. The aggregate amount per renewal term shall not exceed $50,000 in any case unless the Agreement is affirmed and ratified via an executed amendment. All remaining terms and conditions of the Agreement shall remain in full force and effect. 4. Payments. The Town shall pay the Contractor monthly (and the Contractor shall invoice monthly), based upon acceptance and delivery of Materials and/or Services performed and completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the Sourcewell Contract and (ii) document and itemize all work completed to date. The invoice statement shall include a record of materials delivered, time expended, and work performed in sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the Sourcewell Contract will be subject to 3 rejection and may be returned. 5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 7. Israel. Contractor certifies that it is not currently engaged in and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 8. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 9. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 10. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent 4 obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 11. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Sourcewell Contract, the Proposal, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in conformity with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the Sourcewell Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any work order or invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the Sourcewell Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 12. Rights and Privileges. To the extent provided under the Sourcewell Contract, the Town shall be afforded all of the rights and privileges afforded to the Sourcewell and shall be the “Sourcewell” (as defined in the Sourcewell Contract) for the purposes of the portions of the Sourcewell Contract that are incorporated herein by reference. 13. Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to the State to the extent provided under the Sourcewell Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, in connection with the work or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 14. Laws and Regulations. Consultant shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Consultant is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and 5 Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 15. Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Contractor: National Auto Fleet Group 490 Auto Center Drive Watsonville, Ca. 95076 Attn: Neil Carroll or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received: (i) when delivered to the party, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. [SIGNATURES APPEAR ON FOLLOWING PAGES] EXHIBIT A TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND 72 HOUR LLC D/B/A NATIONAL AUTO FLEET GROUP [Sourcewell Contract] See following pages. 091521-NAF Rev. 3/2021 1 Solicitation Number: RFP #091521 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and 72 Hour LLC dba: National Auto Fleet Group, 490 Auto Center Drive, Watsonville, CA 95076 (Supplier). Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Sourcewell issued a public solicitation for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories from which Supplier was awarded a contract. Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities). 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires November 8, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier. C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All rights will cease upon expiration or termination of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.        091521-NAF Rev. 3/2021 2 Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. All Equipment and Products provided under this Contract must be new and the current model. Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site. This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship. In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity. C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information. 3. PRICING All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal. When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location. Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be        091521-NAF Rev. 3/2021 3 returned within a reasonable time at no cost to Sourcewell or its Participating Entities. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity. Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition. Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products. B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity. C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. 4. PRODUCT AND PRICING CHANGE REQUESTS Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator. At a minimum, the request must: x Identify the applicable Sourcewell contract number; x Clearly specify the requested change; x Provide sufficient detail to justify the requested change;        091521-NAF Rev. 3/2021 4 x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference. 5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source. Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract. B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at government- owned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws. 6. PARTICIPATING ENTITY USE AND PURCHASING A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell        091521-NAF Rev. 3/2021 5 contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract. Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity. B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum; the terms of which will be negotiated directly between the Participating Entity and the Supplier. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract. C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events: 1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or 2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements. E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:        091521-NAF Rev. 3/2021 6 x Maintenance and management of this Contract; x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable. B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made). The Report must contain the following fields: x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address; x Participating Entity City; x Participating Entity State/Province; x Participating Entity Zip/Postal Code; x Participating Entity Contact Name; x Participating Entity Contact Email Address; x Participating Entity Contact Telephone Number; x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description; x Item Purchased Price; x Sourcewell Administrative Fee Applied; and x Date Purchase was invoiced/sale was recognized as revenue by Supplier. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee. The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased        091521-NAF Rev. 3/2021 7 by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter. Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing. 10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract. B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties. D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.        091521-NAF Rev. 3/2021 8 E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party.For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern. F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent. 11. INDEMNITY AND HOLD HARMLESS Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law. 12. GOVERNMENT DATA PRACTICES Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Supplier under this Contract. 13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY 1. Grant of License. During the term of this Contract: a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use thetrademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier. b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell. 2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers,        091521-NAF Rev. 3/2021 9 resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees. 3. Use; Quality Control. a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos. b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated. 4. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws. 5. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions. B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract. D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.        091521-NAF Rev. 3/2021 10 14. GOVERNING LAW, JURISDICTION, AND VENUE The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota. 15. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 16. SEVERABILITY If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed. 17. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract.        091521-NAF Rev. 3/2021 11 The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may: x Exercise any remedy provided by law or equity, or x Terminate the Contract or any portion thereof, including any orders issued against the Contract. 18. INSURANCE A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following: 1. Workers’ Compensation and Employer’s Liability. Workers’ Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2,000,000 aggregate for Products-Completed operations $2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms        091521-NAF Rev. 3/2021 12 no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent. Minimum Limits: $1,000,000 each accident, combined single limit 4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile. Minimum Limits: $2,000,000 5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service. Minimum limits: $2,000,000 per occurrence $2,000,000 annual aggregate Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract. C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is        091521-NAF Rev. 3/2021 13 primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention. 19. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities. 20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing. Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.        091521-NAF Rev. 3/2021 14 21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government. The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds. A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60- 1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference. B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.        091521-NAF Rev. 3/2021 15 C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above. D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above. E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above. F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names        091521-NAF Rev. 3/2021 16 of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency. G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352). H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act. J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition. K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents. L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation        091521-NAF Rev. 3/2021 17 and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier not use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval. N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user. O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity. P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments. Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested. R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S. Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism. S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216. T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.        091521-NAF Rev. 3/2021 18 22. CANCELLATION Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation. 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HOUR LLC        &KHFNWKHER[LQWKHFROXPQ,KDYHUHYLHZHGWKLVDGGHQGXPEHORZWRDFNQRZOHGJHHDFKRIWKHDGGHQGD )LOH1DPH ,KDYHUHYLHZHGWKH EHORZDGGHQGXPDQGDWWDFKPHQWV LI DSSOLFDEOH 3DJHV $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B :HG6HSWHPEHU30  $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B 7XH6HSWHPEHU30  $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B 7KX$XJXVW30  $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B0RQ$XJXVW$0  $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B 6XQ$XJXVW30  $GGHQGXPBB$XWRVB689VB9DQVB7UXFNVB5)3B 7KX$XJXVW30  Bid Number: RFP 091521 Vendor Name: 72 HOUR LLC        s from Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 1 RFP #091521 REQUEST FOR PROPOSALS for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Proposal Due Date: September 15, 2021, 4:30 p.m., Central Time Sourcewell, a State of Minnesota local government unit and service cooperative, is requesting proposals for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories to result in a contracting solution for use by its Participating Entities. Sourcewell Participating Entities include thousands of governmental, higher education, K-12 education, nonprofit, tribal government, and other public agencies located in the United States and Canada. A full copy of the Request for Proposals can be found on the Sourcewell Procurement Portal [https://proportal.sourcewell-mn.gov]. Only proposals submitted through the Sourcewell Procurement Portal will be considered. Proposals are due no later than September 15, 2021, at 4:30 p.m. Central Time, and late proposals will not be considered. Solicitation Schedule Public Notice of RFP Published: July 28, 2021 Pre-proposal Conference: August 25, 2021, 10:00 a.m., Central Time Question Submission Deadline: September 8, 2021, 4:30 p.m., Central Time Proposal Due Date: September 15, 2021, 4:30 p.m., Central Time Late responses will not be considered. Opening: September 15, 2021, 6:30 p.m., Central Time See RFP Section V.G. “Opening” Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 2 I. ABOUT SOURCEWELL A. SOURCEWELL Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that facilitates a competitive public solicitation and contract award process for the benefit of its 50,000+ participating entities across the United States and Canada. Sourcewell’s solicitation process complies with State of Minnesota law and policies, conforms to Canadian trade agreements, and results in cooperative purchasing solutions from which Sourcewell’s Participating Entities procure equipment, products, and services. Cooperative purchasing provides participating entities and suppliers increased administrative efficiencies and the power of combined purchasing volume that result in overall cost savings. At times, Sourcewell also partners with other purchasing cooperatives to combine the purchasing volume of their membership into a single solicitation and contract expanding the reach of contracted suppliers’ potential pool of end users. Sourcewell uses a website-based platform, the Sourcewell Procurement Portal, through which all proposals to this RFP must be submitted. B. USE OF RESULTING CONTRACTS In the United States, Sourcewell’s contracts are available for use by: • Federal and state government entities1; • Cities, towns, and counties/parishes; • Education service cooperatives; • K-12 and higher education entities; • Tribal government entities; • Some nonprofit entities; and • Other public entities. In Canada, Sourcewell’s contracts are available for use by: • Provincial and territorial government departments, ministries, agencies, boards, councils, committees, commissions, and similar agencies; • Regional, local, district, and other forms of municipal government, municipal organizations, school boards, and publicly-funded academic, health, and social service entities referred to as MASH sector (this should be construed to include but not be limited to the Cities of Calgary, Edmonton, Toronto, Ottawa, and Winnipeg), as well as any corporation or entity owned or controlled by one or more of the preceding entities; 1 Pursuant to HAR §3-128-2, the State of Hawaii, Department of Accounting and General Services, State Procurement Office, on behalf of the State of Hawaii and participating jurisdictions, has provided notice of its Intent to Participate in the solicitation as a participating entity. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 3 • Crown corporations, government enterprises, and other entities that are owned or controlled by these entities through ownership interest; • Members of the Rural Municipalities of Alberta (RMA) and their represented Associations: MASH (municipalities, academic institutions, schools and hospitals) and MUSH (municipalities, universities, schools and hospitals) sectors, and other governmental agencies eligible to use the Sourcewell contracts. MASH and MUSH sector refers to regional, local, district or other forms of municipal government, school boards, publicly-funded academic, health and social service entities, as well as any corporation or entity owned or controlled by one or more of the preceding entities, including but not limited to represented associations, Saskatchewan Association of Rural Municipalities ("SARM"), Association of Manitoba Municipalities ("AMM"), Local Authorities Services/Association of Municipalities Ontario ("LAS/AMO", excluding the cities of Toronto and Ottawa), Nova Scotia Federation of Municipalities (“NSFM”), Federation of Prince Edward Island Municipalities (“FPEIM”), Municipalities Newfoundland Labrador (“MNL”), Union of New Brunswick Municipalities (“UNBM”), North West Territories Association of Communities ("NWTAC") and their members. RMA Participants may include all not-for-profit agencies for Canadian provinces and territories. For a listing of current United States and Canadian Participating Entities visit Sourcewell’s website (note: there is a tab for each country): https://www.sourcewell-mn.gov/sourcewell-for- vendors/agency-locator. Participating Entities typically access contracted equipment, products, or services through a purchase order issued directly to the contracted supplier. A Participating Entity may request additional terms or conditions related to a purchase. Use of Sourcewell contracts is voluntary and Participating Entities retain the right to obtain similar equipment, products, or services from other sources. To meet Participating Entities’ needs, Sourcewell broadly publishes public notice of all solicitation opportunities, including this RFP. In the United States each state-level procurement department receives notice for possible re-posting. Proof of publication will be available at the conclusion of the solicitation process. II. SOLICITATION DETAILS A. SOLUTIONS-BASED SOLICITATION This RFP and contract award process is a solutions-based solicitation; meaning that Sourcewell is seeking equipment, products, or services that meet the general requirements of the scope of this RFP and that are commonly desired or are required by law or industry standards. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 4 B. REQUESTED EQUIPMENT, PRODUCTS, OR SERVICES It is expected that proposers will offer a wide array of equipment, products, or services at lower prices and with better value than what they would ordinarily offer to a single government entity, a school district, or a regional cooperative. 1. Sourcewell is seeking proposals for Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories, including, but not to be limited to: a. Vehicles of the following types and classifications: i. Automobiles: mini, subcompact, compact, coupe, sedan, and full-size; ii. Sport Utility Vehicles: cross-over, light duty, and heavy duty; iii. Vans: passenger and cargo; iv. Trucks: light duty, half ton, three-quarter ton, and one ton; and v. Vehicles of the varieties described in subsections 1. a. i – iv. above, with upfitting designed for Public Safety applications, such as equipment, lighting, technology, and accessories. b. A wide range of vehicles by: 1) engine type, to include conventional internal combustion, natural gas or propane autogas, hybrid or alternative fuel, and electric powered solutions; 2) seating or cargo configurations, drive train options, and trim levels; and, 3) optional equipment offerings. c. Proposers may include related equipment, accessories, supplies, parts, and services to the extent that the solutions are an incidental portion of the response. 2. This solicitation does not include those equipment, products, or services covered under categories included in contracts currently maintained by Sourcewell: a. Ambulance and Emergency Medical Transport Vehicles, with Related Equipment, Accessories, And Supplies (RFP #022118); b. Firefighting Apparatus, with Related Equipment, Accessories, and Supplies (RFP #022818); c. Class 4-8 Chassis with Related Equipment, Accessories, and Services (RFP #060920); d. School Buses with Related Accessories, Supplies, Parts, and Services (RFP #063020); and, e. Electric Vehicle Supply Equipment and Related Services (RFP #042221). Generally, the solutions for Participating Entities are turn-key solutions, providing a combination of equipment, products and services, delivery, and installation to a properly operating status. However, equipment or products only solutions may be appropriate for situations where Participating Entities possess the ability, either in-house or through local third- party contractors, to properly install and bring to operation the equipment or products being proposed. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 5 Sourcewell prefers suppliers that provide a sole source of responsibility for the equipment, products, and services provided under a resulting contract If proposer is including the equipment, products, and services of its subsidiary entities, the proposer must also identify all included subsidiaries in its proposal. If proposer requires the use of distributors, dealers, resellers, or subcontractors to provide the equipment, products, or services, the proposal must address how the equipment, products or services will be provided to Participating Entities, and describe the network of distributors, dealers, resellers, and/or subcontractors that will be available to serve Participating Entities under a resulting contract. Sourcewell desires the broadest possible selection of equipment, products, and services being proposed over the largest possible geographic area and to the largest possible cross-section of Sourcewell current and future Participating Entities. C. REQUIREMENTS It is expected that proposers have knowledge of all applicable industry standards, laws, and regulations and possess an ability to market and distribute the equipment, products, or services to Participating Entities. 1. Safety Requirements. All items proposed must comply with current applicable safety or regulatory standards or codes. 2. Deviation from Industry Standard. Deviations from industry standards must be identified with an explanation of how the equipment, products, and services will provide equivalent function, coverage, performance, and/or related services. 3. New Equipment and Products. Proposed equipment and products must be for new, current model; however, proposer may offer certain close-out equipment or products if it is specifically noted in the Pricing proposal. 4. Delivered and operational. Unless clearly noted in the proposal, equipment and products must be delivered to the Participating Entity as operational. 5. Warranty. All equipment, products, supplies, and services must be covered by a warranty that is the industry standard or better. D. ANTICIPATED CONTRACT TERM Sourcewell anticipates that the term of any resulting contract(s) will be four years, with an optional one year extension that may be offered based on the best interests of Sourcewell and its Participating Entities. E. ESTIMATED CONTRACT VALUE AND USAGE Based on past volume of similar contracts, the estimated annual value of all transactions from contracts resulting from this RFP are anticipated to be USD $300 Million; therefore, proposers are expected to propose volume pricing. Sourcewell anticipates considerable activity under the Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 6 contract(s) awarded from this RFP; however, sales and sales volume from any resulting contract are not guaranteed. F. MARKETING PLAN Proposer’s sales force will be the primary source of communication with Participating Entities. The proposer’s Marketing Plan should demonstrate proposer’s ability to deploy a sales force or dealer network to Participating Entities, as well as proposer’s sales and service capabilities. It is expected that proposer will promote and market any contract award. G. ADDITIONAL CONSIDERATIONS 1. Contracts will be awarded to proposers able to best meet the need of Participating Entities. Proposers should submit their complete line of equipment, products, or services that are applicable to the scope of this RFP. 2. Proposers should include all relevant information in its proposal, since Sourcewell cannot consider information that is not included in the proposal. Sourcewell reserves the right to verify proposer’s information and may request clarification from a proposer, including samples of the proposed equipment or products. 3. Depending upon the responses received in a given category, Sourcewell may need to organize responses into subcategories in order to provide the broadest coverage of the requested equipment, products, or services to Participating Entities. Awards may be based on a subcategory. 4. A proposer’s documented negative past performance with Sourcewell or its Participating Entities occurring under a previously awarded Sourcewell contract may be considered in the evaluation of a proposal. III. PRICING A. REQUIREMENTS All proposed pricing must be: 1. Either Line-Item Pricing or Percentage Discount from Catalog Pricing, or a combination of these: a. Line-item Pricing is pricing based on each individual product or services. Each line must indicate the proposer’s published “List Price,” as well as the “Contract Price.” b. Percentage Discount from Catalog or Category is based on a percentage discount from a catalog or list price, defined as a published Manufacturer’s Suggested Retail Price (MSRP) for the products or services. Individualized percentage discounts can be applied to any number of defined product groupings. Proposers will be responsible for providing and maintaining current published MSRP with Sourcewell, and this pricing must be included in its proposal and provided throughout the term of any Contract resulting from this RFP. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 7 2. The proposer’s not to exceed price. A not to exceed price is the highest price for which equipment, products, or services may be billed to a Participating Entity. However, it is permissible for suppliers to sell at a price that is lower than the contracted price. 3. Stated in U.S. and Canadian dollars (as applicable). 4. Clearly understandable, complete, and fully describe the total cost of acquisition (e.g., the cost of the proposed equipment, products, and services delivered and operational for its intended purpose in the Participating Entity’s location). Proposers should clearly identify any costs that are NOT included in the proposed product or service pricing. This may include items such as installation, set up, mandatory training, or initial inspection. Include identification of any parties that impose such costs and their relationship to the proposer. Additionally, proposers should clearly describe any unique distribution and/or delivery methods or options offered in the proposal. B. ADMINISTRATIVE FEES Proposers are expected to pay to Sourcewell an administrative fee in exchange for Sourcewell facilitating the resulting contracts. The administrative fee is normally calculated as a percentage of the total sales to Participating Entities for all contracted equipment, products, or services made during a calendar quarter, and is typically one percent (1%) to two percent (2%). In some categories, a flat fee may be an acceptable alternative. IV. CONTRACT Proposers awarded a contract will be required to execute a contract with Sourcewell (see attached template). Only those modifications the proposer indicates in its proposal will be available for discussion. Much of the language in the Contract reflects Minnesota legal requirements and cannot be altered. Numerous and/or onerous exceptions that contradict Minnesota law may result in the proposal being disqualified from further review and evaluation. To request a modification to the template Contract, a proposer must submit the Exceptions to Terms, Conditions, or Specifications table with its proposal. Only those exceptions noted at the time of the proposal submission will be considered. Exceptions must: 1. Clearly identify the affected article and section. 2. Clearly note the requested modification; and as applicable, provide requested alternative language. Unclear requests will be automatically denied. Only those exceptions that have been accepted by Sourcewell will be included in the contract document provided to the awarded supplier for signature. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 8 If a proposer receives a contract award resulting from this solicitation it will have up to 30 days to sign and return the contract. After that time, at Sourcewell’s sole discretion, the contract award may be revoked. V. RFP PROCESS A. PRE-PROPOSAL CONFERENCE Sourcewell will hold an optional, non-mandatory pre-proposal conference via webcast on the date and time noted in the Solicitation Schedule for this RFP and on the Sourcewell Procurement Portal. The purpose of this conference is to allow potential proposers to ask questions regarding this RFP and Sourcewell’s competitive contracting process. Information about the webcast will be sent to all entities that have registered for this solicitation opportunity through their Sourcewell Procurement Portal Supplier Account. Pre-proposal conference attendance is optional. B. QUESTIONS REGARDING THIS RFP AND ORAL COMMUNICATION All questions regarding this RFP must be submitted through the Sourcewell Procurement Portal. The deadline for submission of questions is found in the Solicitation Schedule and on the Sourcewell Procurement Portal. Answers to questions will be issued through an addendum to this RFP. Repetitive questions will be summarized into a single answer and identifying information will be removed from the submitted questions. All questions, whether specific to a proposer or generally related to the RFP, must be submitted using this process. Do not contact individual Sourcewell staff to ask questions or request information as this may disqualify the proposer from responding to this RFP. Sourcewell will not respond to questions submitted after the deadline. C. ADDENDA Sourcewell may modify this RFP at any time prior to the proposal due date by issuing an addendum. Addenda issued by Sourcewell become a part of the RFP and will be delivered to potential proposers through the Sourcewell Procurement Portal. Sourcewell accepts no liability in connection with the delivery of any addenda. Before a proposal will be accepted through the Sourcewell Procurement Portal, all addenda, if any, must be acknowledged by the proposer by checking the box for each addendum. It is the responsibility of the proposer to check for any addenda that may have been issued up to the solicitation due date and time. If an addendum is issued after a proposer submitted its proposal, the Sourcewell Procurement Portal will WITHDRAW the submission and change the proposer’s proposal status to INCOMPLETE. The proposer can view this status change in the “MY BIDS” section of the Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 9 Sourcewell Procurement Portal Supplier Account. The proposer is solely responsible to check the “MY BIDS” section of the Sourcewell Procurement Portal Supplier Account periodically after submitting its proposal (and up to the Proposal Due Date). If the proposer’s proposal status has changed to INCOMPLETE, the proposer is solely responsible to: i) make any required adjustments to its proposal; ii) acknowledge the addenda; and iii) ensure the re-submitted proposal is received through the Sourcewell Procurement Portal no later than the Proposal Due Date and time shown in the Solicitation Schedule above. D. PROPOSAL SUBMISSION Proposer’s complete proposal must be submitted through the Sourcewell Procurement Portal no later than the date and time specified in the Solicitation Schedule. Any other form of proposal submission, whether electronic, paper, or otherwise, will not be considered by Sourcewell. Late proposals will not be considered. It is the proposer’s sole responsibility to ensure that the proposal is received on time. It is recommended that proposers allow sufficient time to upload the proposal and to resolve any issues that may arise. The time and date that a proposal is received by Sourcewell is solely determined by the Sourcewell Procurement Portal web clock. In the event of problems with the Sourcewell Procurement Portal, follow the instructions for technical support posted in the portal. It may take up to 24 hours to respond to certain issues. Upon successful submission of a proposal, the Sourcewell Procurement Portal will automatically generate a confirmation email to the proposer. If the proposer does not receive a confirmation email, contact Sourcewell’s support provider at support@bidsandtenders.ca. To ensure receipt of the latest information and updates via email regarding this solicitation, or if the proposer has obtained this solicitation document from a third party, the onus is on the proposer to create a Sourcewell Procurement Portal Supplier Account and register for this solicitation opportunity. Within the Sourcewell Procurement Portal, all proposals must be digitally acknowledged by an authorized representative of the proposer attesting that the information contained in in the proposal is true and accurate. By submitting a proposal, proposer warrants that the information provided is true, correct, and reliable for purposes of evaluation for potential contract award. The submission of inaccurate, misleading, or false information is grounds for disqualification from a contract award and may subject the proposer to remedies available by law. E. GENERAL PROPOSAL REQUIREMENTS Proposals must be: Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 10 • In substantial compliance with the requirements of this RFP or it will be considered nonresponsive and be rejected. • Complete. A proposal will be rejected if it is conditional or incomplete. • Submitted in English. • Valid and irrevocable for 90 days following the Proposal Due Date. Any and all costs incurred in responding to this RFP will be borne by the proposer. F. PROPOSAL WITHDRAWAL Prior to the proposal deadline, a proposer may withdraw its proposal. G. OPENING The Opening of proposals will be conducted electronically through the Sourcewell Procurement Portal. A list of all proposers will be made publicly available in the Sourcewell Procurement Portal after the Proposal Due Date, but no later than the Opening time listed in the Solicitation Schedule. To view the list of proposers, verify that the Sourcewell Procurement Portal opportunities list search is set to “All” or “Closed.” The solicitation status will automatically change to “Closed” after the Proposal Due Date and Time. VI. EVALUATION AND AWARD A. EVALUATION It is the intent of Sourcewell to award one or more contracts to responsive and responsible proposers offering the best overall quality, selection of equipment, products, and services, and price that meet the commonly requested specifications of Sourcewell and its Participating Entities. The award(s) will be limited to the number of proposers that Sourcewell determines is necessary to meet the needs of its Participating Entities. Factors to be considered in determining the number of contracts to be awarded in any category may include the following: • The number of and geographic location of: o Proposers necessary to offer a comprehensive selection of equipment, products, or services for Participating Entities’ use. o A proposer’s sales and service network to assure availability of product supply and coverage to meet Participating Entities’ anticipated needs. • Total evaluation scores. • The attributes of proposers, and their equipment, products, or services, to assist Participating Entities achieve environmental and social requirements, preferences, and goals. Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 11 Information submitted as part of a proposal should be as specific as possible when responding to the RFP. Do not assume Sourcewell has any knowledge about a specific supplier or product. B. AWARD(S) Award(s) will be made to the proposer(s) whose proposal conforms to all conditions and requirements of the RFP, and consistent with the award criteria defined in this RFP. Sourcewell may request written clarification of a proposal at any time during the evaluation process. Proposal evaluation will be based on the following scoring criteria and the Sourcewell Evaluator Scoring Guide (a copy is available in the Sourcewell Procurement Portal): Conformance to RFP Requirements 50 Financial Viability and Marketplace Success 75 Ability to Sell and Deliver Service 100 Marketing Plan 50 Value Added Attributes 75 Warranty 50 Depth and Breadth of Offered Equipment, Products, or Services 200 Pricing 400 TOTAL POINTS 1000 C. PROTESTS OF AWARDS Any protest made under this RFP by a proposer must be in writing, addressed to Sourcewell’s Executive Director, and delivered to the Sourcewell office located at 202 12th Street NE, P.O. Box 219, Staples, MN 56479. All documents that comprise the complete protest package must be received no later than 10 calendar days’ following Sourcewell’s notice of contract award(s) or non-award and must be time stamped by Sourcewell no later than 4:30 p.m., Central Time. A protest must allege a procedural, technical, or legal defect, with supporting documentation. A protest that merely requests a re-evaluation of a proposal’s content will not be entertained A protest must include the following items: • The name, address, and telephone number of the protester; • Identification of the solicitation by RFP number; • A precise statement of the relevant facts; • Identification of the alleged procedural, technical, or legal defect; • Analysis of the basis for the protest; • Any additional supporting documentation; • The original signature of the protester or its representative; and • Protest bond in the amount of $20,000 (except where prohibited by law or treaty). Rev. 3/2021 Sourcewell RFP #091521 Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Page 12 Protests that do not address these elements will not be reviewed. D. RIGHTS RESERVED This RFP does not commit Sourcewell to award any contract, and a proposal may be rejected if it is nonresponsive, conditional, incomplete, conflicting, or misleading. Proposals that contain false statements or do not support an attribute or condition stated by the proposer may be rejected. Sourcewell reserves the right to: • Modify or cancel this RFP at any time; • Reject any and all proposals received; • Reject proposals that do not comply with the provisions of this RFP; • Select, for contracts or for discussion, a proposal other than that with the lowest cost; • Independently verify any information provided in a proposal; • Disqualify any proposer that does not meet the requirements of this RFP, is debarred or suspended by the United States or Canada, State of Minnesota, Participating Entity’s state or province; has an officer, or other key personnel, who have been charged with a serious crime; or is bankrupt, insolvent, or where bankruptcy or insolvency are a reasonable prospect; • Waive or modify any informalities, irregularities, or inconsistencies in the proposals received; • Clarify any part of a proposal and discuss any aspect of the proposal with any proposer; and negotiate with more than one proposer; • Award a contract if only one responsive proposal is received if it is in the best interest of Participating Entities; and • Award a contract to one or more proposers if it is in the best interest of Participating Entities. E. DISPOSITION OF PROPOSALS All materials submitted in response to this RFP will become property of Sourcewell and will become public record in accordance with Minnesota Statutes Section 13.591, after negotiations are complete. Sourcewell considers that negotiations are complete upon execution of a resulting contract. It is the proposer’s responsibility to clearly identify any data submitted that it considers to be protected. Proposer must also include a justification for the classification citing the applicable Minnesota law. Sourcewell may reject proposals that are marked confidential or nonpublic, either substantially or in their entirety. Sourcewell will not consider the prices submitted by the proposer to be confidential, proprietary, or trade secret materials. Financial information, including financial statements, provided by a proposer is not considered trade secret under the statutory definition. 8/5/2021 Addendum No. 1 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Question and Answer to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: We manufacture service bodies and do not sell complete vehicles. Can we bid our product as an accessory to the bid? Answer 1: Refer to RFP Section II. B. 1. c., “Proposers may include related equipment, accessories, supplies, parts, and services to the extent that the solutions are an incidental portion of the response.” A proposal that does not include complete vehicles, of the types described in RFP Section II. B. 1. a., will be deemed non-responsive. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on 8/5/2021, is required at the time of proposal submittal. 8/8/2021 Addendum No. 2 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Question and Answer to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: Are you accepting leasing options for this bid? Answer 1: Refer to RFP Section II. B. for the description of the requested equipment, products, and services. Sourcewell is seeking equipment, products, or services that meet the general requirements of the scope of this RFP and that are commonly desired by participating entities. A proposer may submit their complete line of equipment, products, or services that are applicable to the scope of this RFP. It is left to the discretion of each proposer to articulate their ability to serve Sourcewell participating entities. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on 8/8/2021, is required at the time of proposal submittal. 8/23/2021 Addendum No. 3 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Questions and Answers to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: I would like to see an example of line-item pricing for Sourcewell. Please provide. Answer 1: In the competitive process, Sourcewell cannot conduct research for, or expressly identify resources that may be relevant to, a proposer. A proposer may review a sampling of past pricing proposals within the current awarded contract documentation available on the Sourcewell website. Navigate to the following address: https://www.sourcewell-mn.gov/contract-search and use the list or search functions. Question 2: Where can I get a copy of the current contract pricing for the brand of vehicles that I offer? Answer 2: Each Sourcewell solicitation represents a separate and distinct opportunity. For examples of current Sourcewell-awarded contracts, refer to the link provided in Answer No. 1 above. Currently active contracts offering similar solutions were awarded under solicitation numbers 120716 and 060920. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on 8/23/2021, is required at the time of proposal submittal. 8/26/2021 Addendum No. 4 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Question and Answer to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: The manufacturer that I represent has not developed pricing for the 2022 model year vehicles. Should pricing be presented for 2021 and 2022 models that have pricing, and a TBD associated with 2022 models that have yet to be priced by the manufacturer? Answer 1: In the competitive process, Sourcewell will not advise a proposer on the content of the proposal. It is left to the discretion of each proposer to articulate and propose the pricing approach that aligns with its business methods and satisfies the requirements of RFP Section III. – Pricing. Proposals are evaluated based on the criteria stated in the RFP. Refer also to the Sourcewell contract template for additional details on the process for requesting a product or pricing change during the term of an awarded contract. A downloadable version of the contract template is found on the Bid Details page for this solicitation within the Sourcewell Procurement Portal. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on 8/26/2021, is required at the time of proposal submittal. 9/7/2021 Addendum No. 5 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Questions and Answers to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: We are requesting a clarification on Table 4 and Table 5. Could we include a reference from a fleet management company or a supplier we use? Answer 1: In the competitive process, Sourcewell will not advise a proposer on the content of the proposal. It is left to the discretion of each proposer to determine how to best demonstrate the ability to serve Sourcewell participating entities and satisfy all requirements of the questionnaire tables. Question 2: Is it acceptable to provide a redline of the entire Sourcewell template contract? Answer 2: A request for modification to the Sourcewell contract template may only be submitted with a proposal. To request a modification to the template Contract terms, conditions, or specifications, a Proposer must complete and submit the Exceptions to Terms, Conditions, or Specifications Form, which is found as the final Table of Step 1 in the proposal submission process. A proposer may elect to include additional supporting materials in its discretion. Question 3: Could a video be uploaded as additional content? Answer 3: It is left to the discretion of each proposer to determine the method it deems best suited to submit its relevant information in a timely fashion through the Sourcewell Procurement Portal. Proposer’s complete proposal must be submitted through the Sourcewell Procurement Portal no later than the date and time specified in the Solicitation Schedule (RFP Section V. D.), and all relevant information should be included in the proposal (RFP Section II., G.). Question 4: Can you elaborate on line item 71? Is there a list of subcategory titles that can be used for reference? Answer 4: It is left to the discretion of the proposer to identify subcategory descriptors that may be relevant to the proposer’s offered equipment, products, and services. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on Tuesday, September 7, 2021 6:58 PM, is required at the time of proposal submittal. 9/8/2021 Addendum No. 6 Solicitation Number: RFP 091521 Solicitation Name: Automobiles, SUVs, Vans, and Light Trucks with Related Equipment and Accessories Consider the following Questions and Answers to be part of the above-titled solicitation documents. The remainder of the documents remain unchanged. Question 1: With the ongoing supply chain delays related to Covid, microchip shortages, and across- the-industry shortages of raw materials, we respectfully request an extension to the submittal deadline. Answer 1: No extension of the due date is contemplated at this time. Question 2: In what format would you like financial stability to be verified? Answer 2: In the competitive process, Sourcewell will not advise a proposer on the content of the proposal. It is left to the discretion of each proposer to determine how to best demonstrate its financial stability and satisfy all requirements of the questionnaire tables. End of Addendum Acknowledgement of this Addendum to RFP 091521 posted to the Sourcewell Procurement Portal on 9/8/2021, is required at the time of proposal submittal. EXHIBIT B TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND 72 HOUR LLC D/B/A NATIONAL AUTO FLEET GROUP [Quote or Work Order] See following pages. One Unit (MSRP)One Unit Total % Savings Total Savings Contract Price $38,415.00 $36,998.14 3.688 %$1,416.86 Factory Order 22-24 Weeks $0.00 Tax (0.0000 %)$0.00 Tire fee $0.00 Total $36,998.14 Jesse Cooper Quoting Department Account Manager Account Manager Email: Fleet@NationalAutoFleetGroup.com Fleet@NationalAutoFleetGroup.com Office: (855) 289-6572 (855) 289-6572 Fax: (831) 480-8497 9/14/2022 Quote ID: 21495 Order Cut Off Date: TBA Mr Rob Durham Town of Fountain Hills 16705 E Avenue of the Fountains Fountain Hills , Arizona, 85268 Dear Rob Durham, National Auto Fleet Group is pleased to quote the following vehicle(s) for your consideration. One (1) New/Unused (2023 Ford Explorer (K7B) Base RWD, Factory Order 22-24 Weeks ) and delivered to your specified location, each for - per the attached specifications. This vehicle(s) is available under the Sourcewell Contract 091521-NAF . Please reference this Contract number on all purchase orders to National Auto Fleet Group. Payment terms are Net 20 days after receipt of vehicle. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. Sincerely,              Purchase Order Instructions & Resources   In order to finalize your purchase please submit this purchase packet to your governing body for a purchase order approval and submit your purchase order in the following way:                                          Email: Fleet@NationalAutoFleetGroup.com                Fax:    (831) 480-8497                                      Mail:  National Auto Fleet Group            490 Auto Center Drive               Watsonville, CA 95076             We will send a courtesy confirmation for your order and a W-9 if needed.     Additional Resources Learn how to track your vehicle:                                    www.NAFGETA.com Use the upfitter of your choice:                                 www.NAFGpartner.com Vehicle Status:                                        ETA@NationalAutoFleetGroup.com General Inquiries:                                  Fleet@NationalAutoFleetGroup.com   For general questions or assistance please contact our main office at:   1-855-289-6572 Vehicle Configuration Options ENGINE Code Description 99H ENGINE: 2.3L ECOBOOST I-4, -inc: auto start-stop technology (STD) TRANSMISSION Code Description 44T TRANSMISSION: 10-SPEED AUTOMATIC, (STD) PRIMARY PAINT Code Description YZ OXFORD WHITE PAINT SCHEME Code Description ___STANDARD PAINT SEAT TYPE Code Description 7N SANDSTONE, CLOTH CAPTAIN'S CHAIRS, -inc: 8-way power driver's seat w/power function for tilt and recline, 4-way manual front passenger seat w/fore/aft and recline and 2-way manually adjustable driver and front passenger head restraints OPTION PACKAGE Code Description 100A EQUIPMENT GROUP 100A ADDITIONAL EQUIPMENT Code Description 153 FRONT LICENSE PLATE BRACKET 16A FRONT & SECOND ROW FLOOR LINERS (16A), -inc: Deletes standard black carpet floor mats 2023 Ford Explorer Base RWD CODE MSRP K7B $36,760.00    99H $0.00 44T $0.00 YZ $0.00 ___$0.00 7N $0.00 100A $0.00 153 $0.00 16A $160.00 $36,920.00 $0.00 $1,495.00 $38,415.00 Est City: MPG Est Highway: MPG Est Highway Cruising Range: N/A mi 2023 Fleet/Non-Retail Ford Explorer Base RWD WINDOW STICKER   MODEL 2023 Ford Explorer Base RWD OPTIONS ENGINE: 2.3L ECOBOOST I-4, -inc: auto start-stop technology (STD) TRANSMISSION: 10-SPEED AUTOMATIC, (STD) OXFORD WHITE STANDARD PAINT SANDSTONE, CLOTH CAPTAIN'S CHAIRS, -inc: 8-way power driver's seat w/power function for tilt and recline, 4-way manual front passenger seat w/fore/aft and recline and 2-way manually adjustable driver and front passenger head restraints EQUIPMENT GROUP 100A FRONT LICENSE PLATE BRACKET FRONT & SECOND ROW FLOOR LINERS (16A), -inc: Deletes standard black carpet floor mats Please note selected options override standard equipment SUBTOTAL Advert/ Adjustments Manufacturer Destination Charge TOTAL PRICE   Any performance-related calculations are offered solely as guidelines. Actual unit performance will depend on your operating conditions. Standard Equipment MECHANICAL Engine: 2.3L EcoBoost I-4 -inc: auto start-stop technology Transmission: 10-Speed Automatic 3.58 Non-Limited-Slip Rear Axle Ratio GVWR: TBD 50 State Emissions System Flexible Fuel Vehicle (FFV) system is standard equipment for vehicles with the 3.3L Ti-VCT V6 FFV engine. Transmission w/Driver Selectable Mode Rear-Wheel Drive Battery w/Run Down Protection Regenerative Alternator Towing Equipment -inc: Trailer Sway Control Gas-Pressurized Shock Absorbers Front And Rear Anti-Roll Bars Electric Power-Assist Speed-Sensing Steering 17.9 Gal. Fuel Tank Quasi-Dual Stainless Steel Exhaust Strut Front Suspension w/Coil Springs Multi-Link Rear Suspension w/Coil Springs 4-Wheel Disc Brakes w/4-Wheel ABS, Front And Rear Vented Discs, Brake Assist, Hill Hold Control and Electric Parking Brake EXTERIOR Wheels: 18" 5-Spoke Silver-Painted Aluminum Tires: P255/65R18 AS BSW -inc: mini spare Steel Spare Wheel Spare Tire Mounted Inside Under Cargo Clearcoat Paint Body-Colored Front Bumper Body-Colored Rear Bumper w/Black Rub Strip/Fascia Accent Black Bodyside Cladding and Black Wheel Well Trim Black Side Windows Trim, Black Front Windshield Trim and Black Rear Window Trim Black Door Handles Black Power Side Mirrors w/Manual Folding Fixed Rear Window w/Fixed Interval Wiper, Heated Wiper Park and Defroster Deep Tinted Glass Speed Sensitive Variable Intermittent Wipers Galvanized Steel/Aluminum Panels Lip Spoiler Black Grille Power Liftgate Rear Cargo Access Tailgate/Rear Door Lock Included w/Power Door Locks Autolamp Auto On/Off Aero-Composite Led Low/High Beam Auto High-Beam Daytime Running Lights Preference Setting Headlamps w/Delay-Off LED Brakelights Headlights-Automatic Highbeams ENTERTAINMENT Radio: AM/FM Stereo -inc: MP3 capability, 6 speakers, speed-compensated volume and SiriusXM w/a 3 month prepaid subscription, Service is not available in Alaska and Hawaii, All SiriusXM services require a subscription, sold separately by SiriusXM after the trial period, Your SiriusXM service will automatically stop at the end of your trial unless you decide to subscribe, If you decide to continue service, the subscription plan chosen will automatically renew and be charged according to your chosen payment method at the then- current rates, Fees and taxes apply, See the SiriusXM Customer Agreement & Privacy Policy at https://www.siriusxm.com/ www.siriusxm.com for full terms and how to cancel, which includes online methods or calling 1-866-635-2349, Available in the 48 contiguous United States, D.C, and Puerto Rico (w/coverage limits and capable receiver), Visit http://www.siriusxm.com/FAQS for most current service area information, Availability of some services and features is subject to device capabilities and location restrictions, All fees, content and features are subject to change, SiriusXM, Pandora and all related logos are trademarks of Sirius XM Radio Inc, and its respective subsidiaries Radio w/Seek-Scan, Clock, Steering Wheel Controls and Internal Memory Streaming Audio Integrated Roof Antenna SYNC 3 Communications & Entertainment System -inc: enhanced voice recognition, 8" LCD capacitive touchscreen in center stack w/swipe capability, AppLink, 911 Assist, Apple Car Play and Android Auto compatibility and 1 "A" and 1 "C" USB ports in the media hub, Bluetooth Wireless Phone Connectivity 2 LCD Monitors In The Front INTERIOR Bucket Front Seats w/Cloth Back Material Driver Seat Passenger Seat 35-30-35 Folding Split-Bench Front Facing Manual Reclining Fold Forward Seatback Cloth Rear Seat w/Manual Fore/Aft Manual Tilt/Telescoping Steering Column Gauges -inc: Speedometer, Odometer, Engine Coolant Temp, Tachometer, Oil Level, Trip Odometer and Trip Computer Power Rear Windows and Fixed 3rd Row Windows Fixed 50-50 Bench Cloth 3rd Row Seat Front, Manual Fold Into Floor, 2 Manual and Adjustable Head Restraints Front Cupholder Rear Cupholder Compass Remote Keyless Entry w/Integrated Key Transmitter, Illuminated Entry, Illuminated Ignition Switch and Panic Button Remote Releases -Inc: Power Cargo Access Cruise Control w/Steering Wheel Controls Voice Activated Dual Zone Front Automatic Air Conditioning Rear HVAC w/Separate Controls HVAC -inc: Underseat Ducts and Headliner/Pillar Ducts Locking Glove Box Driver Foot Rest Interior Trim -inc: Metal-Look/Piano Black Instrument Panel Insert, Metal-Look/Piano Black Door Panel Insert, Piano Black Console Insert and Chrome/Metal-Look Interior Accents Full Cloth Headliner Cloth Door Trim Insert Cloth Captain's Chairs -inc: 8-way power driver's seat w/power function for tilt and recline, 4-way manual front passenger seat w/fore/aft and recline and 2-way manually adjustable driver and front passenger head restraints Day-Night Rearview Mirror Driver And Passenger Visor Vanity Mirrors w/Driver And Passenger Illumination, Driver And Passenger Auxiliary Mirror Full Floor Console w/Covered Storage, Mini Overhead Console w/Storage and 5 12V DC Power Outlets Front And Rear Map Lights Fade-To-Off Interior Lighting Full Carpet Floor Covering -inc: Carpet Front And Rear Floor Mats Carpet Floor Trim Trunk/Hatch Auto-Latch Cargo Area Concealed Storage Cargo Space Lights FOB Controls -inc: Cargo Access Smart Device Remote Engine Start FordPass Connect -inc: 4G LTE Wi-Fi hotspot connects up to 10 devices w/wireless data trial that begins upon AT&T activation and expires at the end of 3 months or when 3GB of data is used, whichever comes first, but cannot extend beyond the trial subscription period for remote features, To activate, go to www.att.com/ford, remotely start, lock and unlock vehicle, schedule specific times to remotely start vehicle, locate parked vehicle and check vehicle status (FordPass Connect, the Ford Pass App, and Complimentary Connected Services are required for remote features (see FordPass terms for details), Connected Service and features depend on compatible AT&T network availability, Evolving technology/cellular networks/vehicle capability may limit functionality and prevent operation of connected features, Connected services excludes Wi-Fi hotspot.), Note: Ford Telematics and data services prep included for fleet only: FordPass Connect 4G Wi-Fi modem provides data to support telematics and data services including but not limited to vehicle location, speed, idle time, fuel, vehicle diagnostics and maintenance alerts, Device enables telematics services through Ford or authorized providers, Activate at www.fleet.ford.com or call 833-FCS-Ford, (833-327-3673) Driver / Passenger And Rear Door Bins Power 1st Row Windows w/Driver And Passenger 1-Touch Up/Down Delayed Accessory Power Power Door Locks w/Autolock Feature Systems Monitor Trip Computer Outside Temp Gauge Analog Appearance Manual Adjustable Rear Head Restraints Front Center Armrest 2 Seatback Storage Pockets Securilock Anti-Theft Ignition (pats) Immobilizer 5 12V DC Power Outlets Air Filtration SAFETY AdvanceTrac w/Roll Stability Control Electronic Stability Control (ESC) And Roll Stability Control (RSC) ABS And Driveline Traction Control Side Impact Beams Dual Stage Driver And Passenger Seat-Mounted Side Airbags Reverse Sensing System Rear Parking Sensors Ford Co-Pilot360 - BLIS (Blind Spot Information System) Blind Spot Ford Co-Pilot360 - Pre-Collision Assist with Pedestrian Detection and Cross-Traffic Alert Lane Keeping Alert Lane Keeping Assist Lane Keeping Alert Lane Departure Warning Collision Mitigation-Front Driver Monitoring-Alert Tire Specific Low Tire Pressure Warning Dual Stage Driver And Passenger Front Airbags Safety Canopy System Curtain 1st, 2nd And 3rd Row Airbags Airbag Occupancy Sensor Driver And Passenger Knee Airbag Mykey System -inc: Top Speed Limiter, Audio Volume Limiter, Early Low Fuel Warning, Programmable Sound Chimes and Beltminder w/Audio Mute Rear Child Safety Locks Outboard Front Lap And Shoulder Safety Belts -inc: Rear Center 3 Point, Height Adjusters and Pretensioners Back-Up Camera w/Washer One Unit (MSRP) One Unit Total % Savings Est. Lease Per Unit To Own Total Savings Contract Price $36,865.00 $35,987.32 2.381 %36 Months $1,090.42 $877.68 R39 Tax (0.0000 %)$0.00 48 Months $831.31 Tire fee $0.00 60 Months $680.16 Total $35,987.32 Office Dpt Account Manager Email: Office@nationalautofleetgroup.com Office: (855) 289-6572 Fax: (831) 480-8497 8/21/2022 Quote ID: 21001 Order Cut Off Date: TBA Mr Rob Durham Town of Fountain Hills 16705 E Avenue of the Fountains Fountain Hills , Arizona, 85268 Dear Rob Durham, National Auto Fleet Group is pleased to quote the following vehicle(s) for your consideration. One (1) New/Unused (2023 Ford Ranger (R4F) XL 4WD SuperCrew 5' Box 126.8" WB, R39 ) and delivered to your specified location, each for - per the attached specifications. This vehicle(s) is available under the Sourcewell Contract 091521-NAF to purchase or Sourcewell contract 032615-NCL to lease to own. Please reference this Contract number on all purchase orders to National Auto Fleet Group. Payment terms are Net 20 days after receipt of vehicle. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. Sincerely, ___________________ _________________ __________________________________ _______________________            Purchase Order Instructions & Resources In order to finalize your purchase please submit this purchase packet to your governing body for a purchase order approval and submit your purchase order in the following way:  Email: Fleet@NationalAutoFleetGroup.com                Fax:    (831) 480-8497 Mail:  National Auto Fleet Group            490 Auto Center Drive               Watsonville, CA 95076           We will send a courtesy confirmation for your order and a W-9 if needed. Additional Resources Learn how to track your vehicle:www.NAFGETA.com Use the upfitter of your choice:www.NAFGpartner.com Vehicle Status:ETA@NationalAutoFleetGroup.com General Inquiries:Fleet@NationalAutoFleetGroup.com For general questions or assistance please contact our main office at: 1-855-289-6572 For information regarding the leasing options, please contact: Chris Canavati National Cooperative Leasing chris@lscfinancial.com 320-763-7600 NJPA contract number 032615-NCL Vehicle Configuration Options ENGINE Code Description 99H ENGINE: 2.3L ECOBOOST, (STD) TRANSMISSION Code Description 44U TRANSMISSION: ELECTRONIC 10-SPEED SELECTSHIFT AUTO, (STD) WHEELS Code Description 64Y WHEELS: 17" SILVER-PAINTED ALUMINUM TIRES Code Description TEW TIRES: LT265/65R17 A/T OWL PRIMARY PAINT Code Description YZ OXFORD WHITE PAINT SCHEME Code Description ___STANDARD PAINT SEAT TYPE Code Description QH EBONY, FRONT CLOTH BUCKET SEATS, -inc: 8-way manual adjustable driver including lumbar, 6-way manual adjustable passenger and manual reclining seats AXLE RATIO Code Description ___3.73 AXLE RATIO, (STD) ADDITIONAL EQUIPMENT Code Description 53R TRAILER TOW PACKAGE, -inc: towing capability up to TBD lbs and 4-pin/7-pin wiring harness, Class IV Trailer Hitch Receiver, 51D AUTO START-STOP REMOVAL 66G AMBER/WHITE LED WARNING STROBES BY SOUND OFF SIGNAL, -inc: rear work light feature, center high-mounted stop light bar and 2 forward facing interior mounted lights, Rear white lights can be turned on solid to provide additional work area lighting 87W 4G LTE WI-FI HOTSPOT REMOVAL 55K 110V AC POWER OUTLET, -inc: 2 USBs located in the rear of the center console OPTION PACKAGE Code Description 101A EQUIPMENT GROUP 101A HIGH, -inc: 6 Speakers, SYNC, enhanced voice recognition communications and entertainment system, 911 Assist, 4.2" LCD display in center stack, AppLink and 1 smart charging USB port, Day/Night Rearview Mirror, Cruise Control, Power Glass Sideview Mirrors, Remote Key Fob w/Tailgate Lock, Perimeter Anti-Theft Alarm 2023 Ford Ranger XL 4WD SuperCrew 5' Box 126.8" WB CODE MSRP R4F $32,230.00 99H $0.00 44U $0.00 64Y $435.00 TEW $275.00 YZ $0.00 ___$0.00 QH $0.00 ___$0.00 53R $495.00 51D ($50.00) 66G $750.00 87W ($20.00) 55K $120.00 101A $1,135.00 $35,370.00 $0.00 $1,495.00 $36,865.00 Est City: 19 (2022) MPG Est Highway: 24 (2022) MPG Est Highway Cruising Range: 432.00 mi 2023 Fleet/Non-Retail Ford Ranger XL 4WD SuperCrew 5' Box 126.8" WB WINDOW STICKER MODEL 2023 Ford Ranger XL 4WD SuperCrew 5' Box 126.8" WB OPTIONS ENGINE: 2.3L ECOBOOST, (STD) TRANSMISSION: ELECTRONIC 10-SPEED SELECTSHIFT AUTO, (STD) WHEELS: 17" SILVER-PAINTED ALUMINUM TIRES: LT265/65R17 A/T OWL OXFORD WHITE STANDARD PAINT EBONY, FRONT CLOTH BUCKET SEATS, -inc: 8-way manual adjustable driver including lumbar, 6-way manual adjustable passenger and manual reclining seats 3.73 AXLE RATIO, (STD) TRAILER TOW PACKAGE, -inc: towing capability up to TBD lbs and 4-pin/7-pin wiring harness, Class IV Trailer Hitch Receiver, AUTO START-STOP REMOVAL AMBER/WHITE LED WARNING STROBES BY SOUND OFF SIGNAL, -inc: rear work light feature, center high-mounted stop light bar and 2 forward facing interior mounted lights, Rear white lights can be turned on solid to provide additional work area lighting 4G LTE WI-FI HOTSPOT REMOVAL 110V AC POWER OUTLET, -inc: 2 USBs located in the rear of the center console EQUIPMENT GROUP 101A HIGH, -inc: 6 Speakers, SYNC, enhanced voice recognition communications and entertainment system, 911 Assist, 4.2" LCD display in center stack, AppLink and 1 smart charging USB port, Day/Night Rearview Mirror, Cruise Control, Power Glass Sideview Mirrors, Remote Key Fob w/Tailgate Lock, Perimeter Anti-Theft Alarm Please note selected options override standard equipment SUBTOTAL Advert/ Adjustments Manufacturer Destination Charge TOTAL PRICE Any performance-related calculations are offered solely as guidelines. Actual unit performance will depend on your operating conditions. Standard Equipment MECHANICAL Engine: 2.3L EcoBoost Requires auto start stop removal (51D) when feature is not available. Transmission: Electronic 10-Speed SelectShift Auto 3.73 Axle Ratio GVWR: TBD 50-State Emissions System Engine Auto Stop-Start Feature Transmission w/Driver Selectable Mode Electronic Transfer Case Part-Time Four-Wheel Drive 70-Amp/Hr 700CCA Maintenance-Free Battery w/Run Down Protection 150 Amp Alternator Towing Equipment -inc: Trailer Sway Control Trailer Wiring Harness Gas-Pressurized Shock Absorbers Front Anti-Roll Bar Electric Power-Assist Speed-Sensing Steering 18 Gal. Fuel Tank Single Stainless Steel Exhaust Auto Locking Hubs Short And Long Arm Front Suspension w/Coil Springs Solid Axle Rear Suspension w/Leaf Springs 4-Wheel Disc Brakes w/4-Wheel ABS, Front Vented Discs, Brake Assist and Hill Hold Control EXTERIOR Wheels: 16" Silver Steel Tires: P255/70R16 A/S BSW Regular Box Style Steel Spare Wheel Full-Size Spare Tire Stored Underbody w/Crankdown Clearcoat Paint Black Rear Step Bumper Black Front Bumper w/Black Rub Strip/Fascia Accent and 2 Tow Hooks Black Wheel Well Trim Black Side Windows Trim and Black Front Windshield Trim Black Door Handles Black Manual Side Mirrors w/Manual Folding Fixed Rear Window Light Tinted Glass Variable Intermittent Wipers Galvanized Steel/Aluminum Panels Black Grille Front License Plate Bracket Tailgate Rear Cargo Access Manual Tailgate/Rear Door Lock Autolamp Auto On/Off Projector Beam Halogen Daytime Running Lights Preference Setting Headlamps w/Delay-Off Cargo Lamp w/High Mount Stop Light ENTERTAINMENT Radio: AM/FM Stereo -inc: Bluetooth pass thru and 1 USB port Radio w/Seek-Scan, Clock, Speed Compensated Volume Control, Aux Audio Input Jack, Steering Wheel Controls and External Memory Control Streaming Audio Integrated Roof Antenna 4 Speakers 2 LCD Monitors In The Front INTERIOR Driver Seat Passenger Seat Full Folding Bench Front Facing Fold-Up Cushion Rear Seat Manual Tilt/Telescoping Steering Column Gauges -inc: Speedometer, Odometer, Voltmeter, Oil Pressure, Engine Coolant Temp, Transmission Fluid Temp, Trip Odometer and Trip Computer Power Rear Windows FordPass Connect 4G Mobile Hotspot Internet Access Front Cupholder Rear Cupholder Compass Manual Air Conditioning HVAC -inc: Underseat Ducts Locking Glove Box Interior Trim -inc: Cabback Insulator and Chrome Interior Accents Full Cloth Headliner Urethane Gear Shifter Material Front Cloth Bucket Seats -inc: 8-way manual adjustable driver including lumbar, 6-way manual adjustable passenger and manual reclining seats Day-Night Auto-Dimming Rearview Mirror 3 12V DC Power Outlets Fade-To-Off Interior Lighting Full Vinyl/Rubber Floor Covering Pickup Cargo Box Lights Smart Device Remote Engine Start Tracker System Instrument Panel Bin, Dashboard Storage, Driver / Passenger And Rear Door Bins and 2nd Row Underseat Storage Power 1st Row Windows w/Driver 1-Touch Up/Down Delayed Accessory Power Power Door Locks Trip Computer Analog Appearance Manual w/Tilt Front Head Restraints and Manual Adjustable Rear Head Restraints Rear Center Armrest Securilock Anti-Theft Ignition (pats) Immobilizer SAFETY AdvanceTrac w/Roll Stability Control Electronic Stability Control (ESC) And Roll Stability Control (RSC) ABS And Driveline Traction Control Side Impact Beams Dual Stage Driver And Passenger Seat-Mounted Side Airbags Ford Co-Pilot360 - Pre-Collision Assist with Automatic Emergency Braking (AEB) Collision Mitigation-Front Tire Specific Low Tire Pressure Warning Dual Stage Driver And Passenger Front Airbags Safety Canopy System Curtain 1st And 2nd Row Airbags Airbag Occupancy Sensor Rear Child Safety Locks Outboard Front Lap And Shoulder Safety Belts -inc: Rear Center 3 Point, Height Adjusters and Pretensioners Dynamic Hitch Assist Back-Up Camera From:Fleet To:Robert Durham Cc:Justin Weldy Subject:Re: Ford Secured Build Slot/Sourcewell Quote Date:Thursday, September 15, 2022 9:08:29 AM Attachments:image001.pngimage002.pngimage003.pngimage004.png EXTERNAL EMAIL Hi Rob, Thanks for the inquiry! Our Sourcewell pricing includes delivery to your specified location. We place factory orders drop shipping to a dealership nearby your facility. Feel free to contact me if you have any questions! Thank you, Neil Carroll Director of Sales National Auto Fleet Group Sourcewell Vehicle Contract #091521-NAFFormally Known as NJPA O: 1-855-289-6572F: 1-562-684-0642 "Please forgive any auto correct blunders" From: Robert Durham <rdurham@fountainhillsaz.gov> Sent: Thursday, September 15, 2022 8:42 AM To: Fleet <Fleet@nationalautofleetgroup.com> Cc: Justin Weldy <jweldy@fountainhillsaz.gov> Subject: RE: Ford Secured Build Slot/Sourcewell Quote Last question: After purchase, how does shipping work? We are responsible for cost andlogistics? Rob Durham Procurement Administrator Town of Fountain Hills p: (480) 816-5128 m: (816) 786-8931 a: 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268w: www.fountainhillsaz.gov e: rdurham@fountainhillsaz.gov From:Fleet To:Robert Durham Subject:Re: Ford Secured Build Slot/Sourcewell Quote Date:Monday, September 19, 2022 8:39:11 AM Attachments:image001.png image002.png image003.png image004.png EXTERNAL EMAIL Hi Rob, Yes, that is correct! I do apologize for any inconveniences. Feel free to contact me if you have any questions! Thank you, Neil Carroll Director of Sales National Auto Fleet Group Sourcewell Vehicle Contract #091521-NAFFormally Known as NJPA O: 1-855-289-6572F: 1-562-684-0642 "Please forgive any auto correct blunders" From: Robert Durham <rdurham@fountainhillsaz.gov> Sent: Monday, September 19, 2022 8:36 AM To: Fleet <Fleet@nationalautofleetgroup.com> Subject: RE: Ford Secured Build Slot/Sourcewell Quote Morning again….. so just to confirm. No California State tax will be added. We will pay Aztaxes on our own. Rob Rob Durham Procurement Administrator Town of Fountain Hills p: (480) 816-5128 m: (816) 786-8931 a: 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 w: www.fountainhillsaz.gov e: rdurham@fountainhillsaz.gov Follow us on: From: Fleet <Fleet@nationalautofleetgroup.com> Sent: Friday, September 16, 2022 6:50 AM To: Robert Durham <rdurham@fountainhillsaz.gov> Subject: Re: Ford Secured Build Slot/Sourcewell Quote EXTERNAL EMAIL Good Morning Rob, Unfortunately, I'm unable to remit your sales tax in Arizona due to our dealerships are located in California. Would you be able to pay the sales tax after receiving the vehicles by chance? Feel free to contact me if you have any questions! Thank you, Neil Carroll Director of Sales National Auto Fleet Group Sourcewell Vehicle Contract #091521-NAFFormally Known as NJPAO: 1-855-289-6572F: 1-562-684-0642 "Please forgive any auto correct blunders" From: Robert Durham <rdurham@fountainhillsaz.gov> Sent: Thursday, September 15, 2022 3:35 PM To: Fleet <Fleet@nationalautofleetgroup.com> Subject: RE: Ford Secured Build Slot/Sourcewell Quote Neill,I needed to add the tax dollar amounts for each quote. I assume we pay Ca tax to would youhave a dollar amount for each quote so I get a total not to exceed amount? Rob Durham Procurement Administrator Town of Fountain Hills p: (480) 816-5128 m: (816) 786-8931a: 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 w: www.fountainhillsaz.gov e: rdurham@fountainhillsaz.gov ITEM 8. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: Farhad Tavassoli, Senior Planner Staff Contact Information: Farhad Tavassoli, Senior Planner Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Extension of a Special Use Permit to allow residential uses on a 0.58 acre property in the Community Commercial (C-C) zoning district at 17134 E. Kingstree Blvd., generally located at the northwest corner of Saguaro Blvd. and Kingstree Blvd.   Staff Summary (Background) Per Chapter 2 of the Zoning Ordinance,    "A building permit for the construction of any improvements allowed by any special use permit issued by the Town Council shall be secured within six (6) months from the date of approval. Any lapsing of the building permit prior to completion of the improvements will cause the Special Use Permit to become null and void. Prior to the termination of this time limit, the applicant may make a written request to the Town Council and the Council may reconsider said use permit to determine if the permit should be reissued for an additional time period or be terminated." The subject Special Use Permit was approved on September 21, 2021. A 6-month extension to the SUP was granted on March 15, 2022, following receipt of the applicant’s written request to Town Council. On September 7, 2022, the applicant provided a written request for another 6-month extension to the special use permit, which expires on September 21, 2022. This agenda item is to review the request from the applicant for a second extension. The 25,350-sq. ft. subject property, located at the northwest corner of Saguaro and Kingstree Blvd., is vacant and zoned C-C (Community Commercial). The allowable uses in this zoning district are identical to the C-1 (Neighborhood Commercial and Professional) zoning district, but allows for common parking areas rather than parking on individual lots.The property at this corner is part of Plat 202, which was platted in 1972 for this type of development. Currently, this block of Plat 202 houses a church, martial arts studio, dance studio, offices, and a restaurant. There are also several condominiums east of the alley, behind the commercial parcels. The common parking area contains 174 stalls, including 9 ADA-compliant stalls.  The applicant is proposing a small mixed-use development. The purpose of the special use permit request is to allow the residential component of the development in a commercial zoning district, as required by the zoning ordinance. The project will consist of three, two-story buildings. The largest building will be to the east, facing Saguaro Blvd. This building will feature a variety of office suites on the first floor, including a break room and conference room. The upper floor will consist of four residential units. Buildings A and B to the west will feature as many as eight live/work units. The applicant envisions uses such as cafés, art studios, beauty salons, and professional services on the ground floor, with a residential upper floor for each business. There will be a central courtyard with landscaping and outdoor seating. The applicant has provided color renderings and building elevations to show facade treatment, wall articulation, varied roof lines, and other modern architectural elements. Section II of the Fountain Hills General Plan 2020 discusses the elements that help create thriving neighborhoods. One of the items listed is having a variety of housing types. This section includes policies to encourage a broad range of housing types affordable to all income ranges and a range of housing types and densities consistent with the character area. Section III of the General Plan includes the information on the Character Areas in the Town. This small commercial area at Saguaro and Kingstree Blvd. was included as part of the surrounding Neighborhood character type. More specifically, this area is considered a Mixed Neighborhood with smaller lots and a mix of non-residential uses. This existing commercial area is intended to remain a low intensity area with any further development or redevelopment consistent with the surrounding neighborhood.  Allowing the proposed residential use would be consistent with the intent of the Plan for this area. The zoning ordinance Section 12.03 allows consideration of residential uses in all commercial zoning districts with the approval of a Special Use Permit (SUP). Section 2.02 of the zoning ordinance establishes the process and criteria for consideration of a SUP. With regards to the possible actions and findings of the Planning and Zoning Commission, Section 2.02 D. 5. of the Zoning Ordinance states:    5. In order to recommend approval of any use permit, the findings of the Commission must be that the establishment, maintenance, or operation of the use or building applied for will not be detrimental to the public health, safety, peace, comfort, and general welfare of persons residing or working in the neighborhood of such proposed use, nor shall it be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the Town. This area has been zoned and platted prior to incorporation of the Town for commercial uses. It is still the desire of the Town to have this be a successful commercial center.  For the Commission to recommend approval, they needed to determine if the introduction of residential uses to this area of Plat 202 would be detrimental to the desired commercial activity and whether the residential use would be detrimental to the public health, safety, peace, or comfort of the neighborhood. A review of this property shows that over its almost 50-year history it has not fully developed and has been considerably underutilized.  The applicant for this case will provide activity on the ground level by opening his office and will provide constant activity for the development by virtue of also residing on the property. The introduction of live/work units as well as four, stand-alone residential units at this location would not be detrimental to the neighborhood and could likely benefit the area by having this development more actively used. Furthermore, the existing condominiums to the west of the alley help provide a good transition between the mixed-use nature of this development and the single-family residential properties even further to the west.  Should Town Council approve the Special Use Permit, staff will continue to work with the applicant on details related to the site plan, grading and drainage plan, and required landscaping before filing for a building permit. Planning and Zoning Commission Discussion At the Planning and Zoning Commission meeting on August 9, there was significant concern shared by some Commissioners regarding the adequacy of the common parking area for this development; that there may not be sufficient parking in the established parking lot for all the development which could occur within this development. The Commissioners were concerned that the proposed development would result in a demand for more parking than is available as the site continues to build out. Since the meeting, staff has further reviewed the existing development and considered the possible impacts of the proposed SUP on the development. The approved entitlements for this property allow the site to be developed with two-story commercial uses covering each lot. It was determined at the time of the initial platting and zoning that the parking provided would be sufficient for the amount of development that would occur. The development which has taken place to date is less than the maximum entitlement on several of the lots. Staff is not aware that there has ever been a parking issue with the existing development and statements at the Planning and Zoning hearing supports this condition. The specific request is to allow the second story of the proposed buildings to be used as residences. There is a total of 10,800 square feet of second-story building space being proposed in the conceptual site plan. If the second floor area were to be used as offices, staff would project a need for 44 parking spaces based on our ordinance requirements (more parking would be required for medical office uses). If the second floor is built out with the maximum number of requested residential units and all were two-bedroom or larger units, 27 parking spaces would be required. Therefore, approval of the request SUP should have the impact of reducing the overall parking demand rather than increase it.   Several members of the public also spoke at the P&Z Commission hearing, speaking both for and against the SUP. Opponents were generally concerned about traffic impacts, project scale, and potential view obstructions. (It should be noted that the ground elevation for the Saguaro Ridge Villas is approximately 16' above the property in question.)  The attached letter of opposition was also provided by the Saguaro Ridge Villas Association, which is located west of the site. Supporters spoke about the need for more businesses at the Town, and the potential for this to be a successful development. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Section 2.02 - Special Use Permits Zoning Ordinance Section 12.03 - Uses Subject to Special Use Permits in the C-1, C-C, C-2, and C-3 Zoning Districts General Plan 2020, Section II: Thriving Neighborhoods General Plan 2020 Character Areas, Table 1 Character Area Plan Risk Analysis If the request for an extension is approved, the applicant is granted an additional six months to submit for a building permit. Additionally, Chapter 2 of the Zoning Ordinance states, "No person shall reapply for the same or substantially the same use permit on the same or substantially the same plot, lot, or parcel of land within a period of one (1) year from the date of denial of said use permit."   Recommendation(s) by Board(s) or Commission(s) At their regular meeting on August 9, 2021, the Planning and Zoning Commission recommended denial of the special use permit with a 4-2 vote, citing the aforementioned concerns regarding parking in relation to project scale. At the September 21, 2022 ,Town Council meeting, Council voted unanimously (7-0) to approve the Special Use Permit as presented. At the March 15, 2022, Town Council meeting, Council voted unanimously (7-0) to approved the request for a 6-month extension to the Special Use permit as presented on the consent agenda.  Staff Recommendation(s) The applicant has submitted the formal site plan for staff review.  Staff has provided comments back to the applicant and is waiting on the next re-submittal.  Addressing the concerns regarding the parking is still an outstanding issue.  Allowing a residential use as a component of this development still appears to be an appropriate use for this property. Staff recommends approval of the second six-month extension request of this Special Use Permit for a maximum of 12 dwelling units. SUGGESTED MOTION MOVE to approve the request for a six-month extension to the Special Use Permit to allow a maximum of 12 dwelling units at 17134 E. Kingstree Blvd. Attachments Second extension request  Case Map  Aerial Photo  Narrative  Site Drawings  Letter of Opposition  Form Review Inbox Reviewed By Date Development Services Director John Wesley 09/20/2022 12:07 PM Form Started By: Farhad Tavassoli Started On: 09/19/2022 05:29 PM Final Approval Date: 10/06/2022  KAUFFMAN HOMES K-Group Southwest Contracting, LLC K-Group Contracting, LLC 16810 Ave of the Fountains Ste #106 Fountain Hills, AZ 85268 (480) 816-6155 September 7, 2022 Farhad, We would like to request an extension for our FH Urban District project. We have been diligently working on completing all items needed to get this project off the ground. We are committed to getting this project complete and have spent over $100,000 on getting plans completed and approved. Currently we are in the 2nd review process with the town. We submitted docs originally on May 18 with comments back on June 28 with resubmittal of redlines from those comments on August 23. Thank you for the consideration of the extension. I am excited to get this project started and built out. Dan Kauffman CASE: SU2021-03 SITE / ADDRESS: 17134 E. Kingstree Blvd. APN #176-08-411A REQUEST: SPECIAL USE PERMIT to allow residential uses on a 0.58 acre property in the Community Commercial (C-C) zoning district at 17134 E. Kingstree Blvd., generally located at the northwest corner of Saguaro Blvd. and Kingstree Blvd. Site Location Subject Property Vicinity Map ITEM 8. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: approving Professional Services Agreement 2023-047 between the Town and Roadway Asset Services, LLC for Pavement Condition and Evaluation Related Services Staff Summary (Background) Infrastructure planning is an essential component in the management of town streets, and is driven by aging infrastructure, growth and the current reality of dwindling budgets for maintenance. The emphasis is now being placed on not only knowing the true cost of providing a cost-effective pavement management program, but also understanding what will be required to maintain a certain level of service throughout the life of town-owned streets.   The Town previously completed two Pavement Assessment Analysis Reports, one in 2009 and a second in 2017. Best pavement management practices recommend that extensive street assessments take place every five to seven years to update the condition data, analysis models, and rehabilitation program.   The primary goal of this assessment is to provide pavement management services which will assist the town in maintaining its pavement network at an acceptable level of service and doing so in the most cost-effective manner.  The firm will also help estimate the cost of street maintenance and improvements as well as prioritize street projects based on road conditions and available funding.     The Town published a notice for Request for Proposals (RFP) on August 3, 2022, on the Town website, Fountain Hills Times, and the Arizona Business Gazette for Pavement Condition and Evaluation Related Services. After reviewing and grading the proposals submitted, the selection committee selected Roadway Asset Services, LLC.   The proposed contract with Roadway Asset Services, LLC in the amount of $59,997 will provide updates to the mapping of the Town's roadway network, pavement data collection, asset management software, analysis and reporting.  The contract also provides for up to four annual renewals to host the pavement management software and to provide updates based upon maintenance data provided by staff.   The citizen streets committee will be provided information from the updated Pavement Assessment Analysis Reports and utilize this information to help develop future street recommendations to the Town Council.  The committee reviewed the scope of services for pavement assessment services prior to it being advertised and provided input on it.  At its monthly meeting on October 5, 2022, the committee also recommended approval of the contract.   Related Ordinance, Policy or Guiding Principle Resolution 2013-02. Risk Analysis Failure to secure an agreement for these services will delay the pavement management program. Recommendation(s) by Board(s) or Commission(s) The Citizen Streets Committee has reviewed the scope of services and recommends approval.   Staff Recommendation(s) Staff recommends approval of Professional Services Agreement 2023-047 between the Town and Roadway Asset Services, LLC for Pavement Condition and Evaluation Related Services. SUGGESTED MOTION MOVE to approve Professional Services Agreement 2023-047 between the Town and Roadway Asset Services, LLC for Pavement Condition and Evaluation Related Services in the amount of $59,997. Fiscal Impact Fiscal Impact:$59,977  Budget Reference:N/A Funding Source:Streets Fund If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Professional Services Agreement  Scope and Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 10/04/2022 05:17 PM Finance Director David Pock 10/05/2022 02:14 PM Town Attorney Aaron D. Arnson 10/05/2022 02:17 PM Town Manager Grady E. Miller 10/06/2022 11:27 AM Form Started By: Justin Weldy Started On: 09/22/2022 04:43 PM Final Approval Date: 10/06/2022  1 Contract No. 2023-047 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ROADWAY ASSET SERVICES, LLC THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Roadway Asset Services, LLC, a(n) Texas limited liability company (the “Vendor” or “Consultant”). RECITALS A. The Town issued a Request for Proposals, RFP No. “RFP-2022-026” (the “RFP”), a copy of which is on file with the Town and incorporated herein by reference, seeking proposals from vendors interested in providing Pavement Condition and Evaluation Related Services for the Town (the “Services”). B. The Vendor responded to the RFP by submitting a proposal (the “Proposal”), attached hereto as Exhibit A and incorporated herein by reference. C. The Town desires to enter into an Agreement with the Vendor to perform the Services, as set forth below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Vendor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date of execution and shall remain in full force and effect until June 30, 2023 (the “Initial Term”), unless terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this Agreement may be renewed for up four successive one-year terms (each, a “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal, (ii) at least 30 days prior to the end of the then-current term of this Agreement, the Vendor requests, in writing, to extend this Agreement for an additional one-year term and (iii) the Town approves the additional one-year term in writing (including any price adjustments approved as part of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Vendor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Vendor, elect to waive this requirement and renew this Agreement. The Initial Term and all Renewal 2 Terms, if any, are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. Vendor shall provide the Services as set forth in the Proposal attached hereto as Exhibit A and incorporated herein by reference. 3. Compensation. The Town shall pay the Vendor an amount not to exceed $59,977 (including all renewals), at the rates set forth in the Proposal attached hereto as Exhibit A and incorporated herein by reference. Any change to the aggregate amount of the Agreement must be affirmed and ratified via an executed amendment. All remaining terms and conditions of the Agreement shall remain in full force and effect. 4. Payments. The Town shall pay the Vendor monthly (and the Vendor shall invoice the Town monthly), based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. This Agreement must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to hire Town residents to fill vacant positions at all levels. Vendor agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Vendor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Vendor’s performance. The Vendor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Vendor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Vendor. The Town has no obligation to provide Vendor, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Vendor. 9. Performance Warranty. Vendor warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 3 10. Indemnification. To the fullest extent permitted by law, the Vendor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Vendor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Vendor, Vendor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Vendor. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Vendor from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. 4 E. Primary Insurance. Vendor’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. G. Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Vendor. Vendor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Vendor shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Vendor shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Vendor. Vendor shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Vendor will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Vendor’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Vendor’s responsibility to forward renewal certificates and 5 declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Vendor’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Vendor under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Vendor shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not 6 limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. B. Vehicle Liability. Vendor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Vendor’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Vendor engages in any professional services or work in any way related to performing the work under this Agreement, the Vendor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Vendor, or anyone employed by the Vendor, or anyone for whose negligent acts, mistakes, errors and omissions the Vendor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers’ Compensation Insurance. Vendor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Vendor’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Vendor of written notice by 7 the Town. Upon termination for convenience, Vendor shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Vendor in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Vendor for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Vendor to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Vendor, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Vendor or any agent or representative of the Vendor to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Vendor an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Vendor fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or 8 indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this Agreement shall terminate at the end of then-current fiscal year and the Town and the Vendor shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Vendor acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Vendor, its employees and subcontractors are not entitled to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Vendor, its employees or subcontractors. The Vendor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Vendor do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Vendor shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Vendor is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Vendor. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 9 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Vendor without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision shall be a breach of this Agreement by Vendor. 13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Vendor is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Vendor. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Vendor from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Vendor any amounts Vendor owes 10 to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Vendor any amounts Vendor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady E. Miller, Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Vendor: Roadway Asset Services, LLC 321 W. Curry St Chandler, Az. 85225 Attn: Bart Williamson or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Vendor shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Vendor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Vendor also agrees that any 11 information pertaining to individual persons shall not be divulged other than to employees or officers of Vendor as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors are complying with the warranty under subsection 13.17 below, Vendor’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Vendor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Vendor’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Vendor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Vendor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Vendor pursuant to this Agreement. Vendor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Vendor or its subcontractors reasonable advance notice of intended audits. Vendor shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Vendor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Vendor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Vendor certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 13.20 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. [SIGNATURES ON FOLLOWING PAGES] 12 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ROADWAY ASSET SERVICES, LLC [Consultant’s Proposal] See following pages. Town of Fountain Hills Admin-Procurement Robert Durham, Procurement Officer 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services RESPONSE DEADLINE: September 1, 2022 at 5:00 pm Report Generated: Monday, September 19, 2022 Roadway Asset Services, LLC Proposal CONTACT INFORMATION Company: Roadway Asset Services, LLC Email: bwilliamson@roadwayassetservices.com Contact: Bart Williamson Address: 6001 W Parmer Lane Suite 370-1102 Austin, TX 78727 Phone: (210) 837-5249 Website: www.roadwayassetservices.com Submission Date: Aug 31, 2022 4:06 PM PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 2 ADDENDA CONFIRMATION No addenda issued QUESTIONNAIRE 1. Certification By confirming questions under this section, the Vendor certifies: NO COLLUSION* Pass The submission of the Proposal did not involve collusion or other anti-competitive practices. Confirmed NO DISCRIMINATION* Pass It shall not discriminate against any employee or applicant for employment in violation of Federal Executive Order 11246. Confirmed NO GRATUITY* Pass It has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip favor or service to a Town employee, officer or agent in connection with the submitted Proposal. It (including the Vendor’s employees, representatives, agents, lobbyists, attorneys, and subcontractors) has refrained, under penalty of disqualification, from direct or indirect contact for the purpose of influencing the selection or creating bias in the selection process PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 3 with any person who may play a part in the selection process, including the Selection Committee, elected officials, the Town Manager, Assistant Town Managers, Department Heads, and other Town staff. All contact must be addressed to the Town’s Procurement Agent, except for questions submitted as set forth in Subsection 1.4 (Inquiries), above. Any attempt to influence the selection process by any means shall void the submitted Proposal and any resulting Agreement. Confirmed FINANCIAL STABILITY* Pass It is financially stable, solvent and has adequate cash reserves to meet all financial obligations including any potential costs resulting from an award of the Agreement. Confirmed NO SIGNATURE/FALSE OR MISLEADING STATEMENT* Pass The signature on the cover letter of the Proposal and the Vendor Information Form is genuine and the person signing has the authority to bind the Vendor. Failure to sign the Proposal and the Vendor Information Form, or signing either with a false or misleading statement, shall void the submitted Proposal and any resulting Agreement. Confirmed PROFESSIONAL SERVICES AGREEMENT* Pass In addition to reviewing and understanding the submittal requirements, it has reviewed the attached sample Professional Services Agreement including the Scope of Work and other Exhibits. Confirmed PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 4 REFERENCE CHECKS* Pass References will be checked, and it is Vendor’s responsibility to ensure that all information is accurate and current. Vendor authorizes the Town’s representative to verify all information from these references and releases all those concerned from any liability in connection with the information they provide. Inability of the Town to verify references shall result in the Proposal being considered non-responsive. Confirmed 2. Vendor Proposal GENERAL INFORMATION* Pass A. One page cover letter as described in the section titled "RFP Submission Process", the subsection titled "Required Submittal". B. Provide Vendor identification information. Explain the Vendor’s legal organization including the legal name, address, identification number and legal form of the Vendor (e.g., partnership, corporation, joint venture, limited liability company, sole proprietorship). If a joint venture, identify the members of the joint venture and provide all of the information required under this section for each member. If a limited liability company, provide the name of the member or members authorized to act on the company’s behalf. If the Vendor is a wholly owned subsidiary of another company, identify the parent company. If the corporation is a nonprofit corporation, provide nonprofit documentation. Provide the name, address and telephone number of the person to contact concerning the Proposal. C. Identify the location of the Vendor’s principal office and the local work office, if different. Include any documentation that supports the Vendor’s authority to provide services in Arizona. D. Provide a general description of the Vendor’s organization, including years in business. E. Identify any contract or subcontract held by the Vendor or officers of the Vendor that have been terminated within the last five years. Briefly describe the circumstances and the outcome. PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 5 F. Identify any claims arising from a contract which resulted in litigation or arbitration within the last five years. Briefly describe the circumstances and the outcome. RAS'_General_Information.pdfRAS_Complete_Submission_for_Pavement_Condition_and_Evaluation_Related_Services.pdf EXPERIENCE AND QUALIFICATIONS OF THE VENDOR* Pass A. Provide a detailed description of the Vendor’s experience in providing similar services to municipalities or other entities of a similar size to the Town, specifically relating experience with respect to Pavement Condition and Evaluation Related Services. B. Vendor must demonstrate successful completion of at least three similar projects within the past 60 months. For the purpose of this Solicitation, “successful completion” means completion of a project within the established schedule and budget and “similar projects” resemble this project in size, nature and scope. Provide a list of at least three organizations for which you successfully completed a similar project. This list shall include, at a minimum, the following information: 1. Name of company or organization. 2. Contact name. 3. Contact address, telephone number and e-mail address. 4. Type of services provided. 5. Dates of contract initiation and expiration. Experience_and_Qualifications_of_the_Vendor.pdf KEY POSITIONS* Pass A. Identify each key personnel member that will render services to the Town including title and relevant experience required, including the proposed project manager and project staff. B. Indicate the roles and responsibilities of each key position. Include senior members of the Vendor only from the perspective of what their role will be in providing services to the Town. PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 6 C. If a subcontractor will be used for all work of a certain type, include information on this subcontractor. A detailed plan for providing supervision must be included. D. Attach a résumé and evidence of certification, if any, for each key personnel member and/or subcontractor to be involved in this project. Résumés should be attached together as a single appendix at the end of the Proposal and will not count toward the Proposal page limit. However, each resume shall not exceed two pages in length. Key_Positions.pdf PROJECT APPROACH* Pass A. Describe the Vendor’s approach to performing the required Services in the section titled Scope of Work, and its approach to contract management, including its perspective and experience on partnering, customer service, quality control, scheduling and staff. B. Describe any alternate approaches if it is believed that such an approach would best suit the needs of the Town. Include rationale for alternate approaches, and indicate how the Vendor will ensure that all efforts are coordinated with the Town’s Representatives. Project_Approach.pdf PROJECT SCHEDULE* Pass Provide a project schedule showing key project milestones and deliverables. The schedule shall demonstrate Vendor’s ability to meet the designated milestones as listed below. Assumptions used in developing the schedule shall be identified and at a minimum the proposed schedule shall include the following dates, if applicable. A. Proposed Kick-Off Meeting B. Phase I Report Due Date C. Phase I Report Presentation Date PROPOSAL DOCUMENT REPORT RFP No. RFP-2022-026 Pavement Condition and Evaluation Related Services PROPOSAL DOCUMENT REPORT Request for Proposals - Pavement Condition and Evaluation Related Services Page 7 D. Phase II Implementation Start Date E. Project Completion Date Project_Schedule.pdf PRICING* Pass Pricing.pdf Town of Fountain Hills, AZ Proposal for Pavement Condition & Evaluation Related Services RFP-2022-026 Prepared by: Roadway Asset Services, LLC. 321 W Curry St. Chandler, Arizona 85225 bwilliamson@roadwayassetservices.com 210-837-5249 General Information Roadway Asset Services, LLC 321 W Curry St Chandler, AZ 85225 623-640-2897 September 1, 2022 Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, AZ 85268 Cover Letter Dear Selection Committee, Roadway Asset Services, LLC (RAS) is pleased to submit for RFP-2022-026, Pavement Condition and Evaluation Related Services. The RAS assigned Project Manager and Senior Vice President, Zac Thomason, M.B.A., is thoroughly familiar with the Fountain Hills project requirements, required analysis scenarios, ad hoc scenarios, Lucity implementation, and local environmental conditions as he managed the Town’s last Pavement Condition Assessment. In addition, the RAS Assistant Project Manager and Chief Data Officer Mark Kramer, P.E., is also intimately familiar with the Fountain Hills network as he previously managed the Fountain Hills Lucity analysis and configuration. Specifically, the RAS team will provide the following: ➢ Unrivaled Pavement Management Experience – Our firm is comprised of industry experts assisting municipalities in the field of pavement and asset management. Throughout their careers, the RAS leadership team has managed pavement data and ROW asset collection for the following municipalities: Fountain Hills, AZ; Arizona DOT; Goodyear, AZ; Scottsdale, AZ; Gilbert, AZ; Salt Lake City, UT; Denver, CO; Pueblo, CO; and Albuquerque, NM. ➢ Automated Data Collection Technology & Project Understanding – In line with the last survey, RAS proposes the use of advanced automated data collection hardware for the collection of 390 lane miles. RAS uses the latest technology (LCMS-2 and Ladybug 360 cameras) to collect ASTM D6433 distresses for Pavement Condition Index reporting. ➢ Lucity Expertise – RAS’ experience with the Lucity software is truly unmatched. Project Manager, Zac Thomason, has worked with local Arizona Lucity implementations for over 17 years and Assistant Project Manager, Mark Kramer, worked as the Director of IT at the Town of Gilbert for over 10-years and was responsible for managing the enterprise Lucity software. The team’s experience with Lucity spans from production loads to the complete configuration of the Lucity operating parameters. ➢ Local Experience– With the Project Manager located at an office in Chandler, AZ and a deep understanding of Fountain Hills’ pavement distresses and treatments, our team is positioned for the long-term success of the Town’s pavement management program. RAS has reviewed the RFP in its entirety and this proposal will remain valid for 180 days from the date of submission. RAS acknowledges the posted Questions and Answers. RAS’ main point of contact and authorized negotiator for contract terms and binding decisions is Bart Williamson, FCLS. He can be contacted at (210)837-5249 and bwilliamson@roadwayassetservices.com. Sincerely, Bart Williamson, CEO Town of Fountain Hills Pavement Condition and Evaluation Related Services 2 Proprietary Information 7.2.1 General Information Roadway Asset Services, LLC (RAS) is a Texas Engineering Firm (License #: F-22104) with a Principal Office in Austin, TX and a Local Work Office in Chandler, AZ. RAS offers comprehensive experience and subject matter expertise in the fields of engineering, surveying, asset management, transportation planning, and GIS. The RAS executive team has managed over 100,000 miles of pavement condition survey and ROW asset data in the last 5 years. Additionally, the RAS team has extensive experience rating pavement per the ASTM D6433 methodology via the 100% continuous linear coverage approach that utilizes advanced line scan laser-based technology (hardware), powerful sensor based processing algorithms for distress quantification, and an augmented 21st century artificial intelligence (software). RAS is a Bronze Esri Business Partner with a leadership team composed of seasoned pavement management professionals who bring over 100 years of pavement condition survey management. Throughout their careers, the RAS leadership team has been involved in pavement condition and ROW asset surveys for agencies of varying size across the country including: Experience with Database Systems Like Lucity Lucity (also known as CentralSquare) is a leading provider in Asset Management for Public Works Departments across the Country. Lucity allows the Town to host a main platform/application for the management of all assets. Users of Lucity can easily identify assets owned, understand necessary repairs to managed assets, review asset performance, and determine the cost of replacement/treatment. Key tools include:  Community Development: With the Community Development solution, the Town can obtain data for policy decisions, analytics, and GIS integration.  Enterprise Asset Management (EAM): EAM allows the Town to leverage GIS technology to graphically display assets and respond to issues immediately. Town Staff can understand how each asset affects short/long-term budgets for the management of future expenditures Fountain Hills, AZ Goodyear, AZ Denver, CO Pueblo, CO Memphis, TN Arizona DOT Albuquerque, NM San Antonio, TX Greenville, SC Mesa County, CO Scottsdale, AZ Gilbert, AZ Austin, TX Grand Junction, CO Salt Lake City, UT Town of Fountain Hills Pavement Condition and Evaluation Related Services 3 Proprietary Information  Citizen Engagement Software: This solution allows constituents to view service requests and other projects for ease of mind. Town staff can process and respond to requests faster while eliminating phone calls and manual processes.  Transportation Management: Lucity users can reduce potholes and repairs needed with advanced insight on preventative maintenance schedules and PCI compliance information.  Analytics: This tool allows users to create customized reports for the prediction of future behaviors and the discovery of patterns. With the customized dashboard, users can convert data into visualizations that provide insight into the community. The RAS team offers the Town of Fountain Hills unmatched subject matter expertise and knowledge ranging from managing and delivering municipal automated pavement data collection projects to pavement engineering and configuration of the analysis operating parameters of the Town’s Lucity management system. Our team is uniquely qualified to exceed the requirements of this project through the use of advanced data collection technology, powerful sensor-based algorithms for distress detection, Artificial Intelligence (AI) processing routines, and rigorous hands-on Quality Control (QC) by an experienced pavement engineering team. The RAS team is uniquely familiar with the Town of Fountain Hills legacy analysis configuration within Lucity in addition to local site conditions such as the varying construction design standards related to pre- incorporation and post-incorporation roadways. Project Manager, Mr. Thomason, and Assistant Project Manager, Mr. Kramer, stand ready to develop custom deterioration curves and rehabilitation activity costs for these pre-incorporation roadways. RAS’ Legal Information and Contract History Roadway Asset Services, LLC (legal name with EIN #85-1939454) has the following members authorized to act on the company's behalf: Bart Williamson, CEO; Scot Gordon, President; Zac Thomason, Senior VP; and Mark Kramer, Chief Data Officer. RAS’ retains a Principal Work Office in Austin, TX (6001 W Parmer Lane Ste.370-1102) and a Local Work Office in Chandler, AZ (321 W Curry St). RAS has been incorporated with the State of Texas for two years and is registered to do business in Arizona by the Arizona Corporation Commission (#23412705). RAS has never been involved in litigation or had a contract terminated. We pride ourselves on excellent communication protocols that establish mutual understanding. Our reputation for completing projects on time and within budget has led to long-term satisfactory relationships with our clients that result in multiple collection cycles. Town of Fountain Hills, AZ Proposal for Pavement Condition & Evaluation Related Services RFP-2022-026 Prepared by: Roadway Asset Services, LLC. 321 W Curry St. Chandler, Arizona 85225 bwilliamson@roadwayassetservices.com 210-837-5249 General Information Roadway Asset Services, LLC 321 W Curry St Chandler, AZ 85225 623-640-2897 September 1, 2022 Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, AZ 85268 Cover Letter Dear Selection Committee, Roadway Asset Services, LLC (RAS) is pleased to submit for RFP-2022-026, Pavement Condition and Evaluation Related Services. The RAS assigned Project Manager and Senior Vice President, Zac Thomason, M.B.A., is thoroughly familiar with the Fountain Hills project requirements, required analysis scenarios, ad hoc scenarios, Lucity implementation, and local environmental conditions as he managed the Town’s last Pavement Condition Assessment. In addition, the RAS Assistant Project Manager and Chief Data Officer Mark Kramer, P.E., is also intimately familiar with the Fountain Hills network as he previously managed the Fountain Hills Lucity analysis and configuration. Specifically, the RAS team will provide the following: ➢ Unrivaled Pavement Management Experience – Our firm is comprised of industry experts assisting municipalities in the field of pavement and asset management. Throughout their careers, the RAS leadership team has managed pavement data and ROW asset collection for the following municipalities: Fountain Hills, AZ; Arizona DOT; Goodyear, AZ; Scottsdale, AZ; Gilbert, AZ; Salt Lake City, UT; Denver, CO; Pueblo, CO; and Albuquerque, NM. ➢ Automated Data Collection Technology & Project Understanding – In line with the last survey, RAS proposes the use of advanced automated data collection hardware for the collection of 390 lane miles. RAS uses the latest technology (LCMS-2 and Ladybug 360 cameras) to collect ASTM D6433 distresses for Pavement Condition Index reporting. ➢ Lucity Expertise – RAS’ experience with the Lucity software is truly unmatched. Project Manager, Zac Thomason, has worked with local Arizona Lucity implementations for over 17 years and Assistant Project Manager, Mark Kramer, worked as the Director of IT at the Town of Gilbert for over 10-years and was responsible for managing the enterprise Lucity software. The team’s experience with Lucity spans from production loads to the complete configuration of the Lucity operating parameters. ➢ Local Experience– With the Project Manager located at an office in Chandler, AZ and a deep understanding of Fountain Hills’ pavement distresses and treatments, our team is positioned for the long-term success of the Town’s pavement management program. RAS has reviewed the RFP in its entirety and this proposal will remain valid for 180 days from the date of submission. RAS acknowledges the posted Questions and Answers. RAS’ main point of contact and authorized negotiator for contract terms and binding decisions is Bart Williamson, FCLS. He can be contacted at (210)837-5249 and bwilliamson@roadwayassetservices.com. Sincerely, Bart Williamson, CEO Town of Fountain Hills Pavement Condition and Evaluation Related Services 2 Proprietary Information 7.2.1 General Information Roadway Asset Services, LLC (RAS) is a Texas Engineering Firm (License #: F-22104) with a Principal Office in Austin, TX and a Local Work Office in Chandler, AZ. RAS offers comprehensive experience and subject matter expertise in the fields of engineering, surveying, asset management, transportation planning, and GIS. The RAS executive team has managed over 100,000 miles of pavement condition survey and ROW asset data in the last 5 years. Additionally, the RAS team has extensive experience rating pavement per the ASTM D6433 methodology via the 100% continuous linear coverage approach that utilizes advanced line scan laser-based technology (hardware), powerful sensor based processing algorithms for distress quantification, and an augmented 21st century artificial intelligence (software). RAS is a Bronze Esri Business Partner with a leadership team composed of seasoned pavement management professionals who bring over 100 years of pavement condition survey management. Throughout their careers, the RAS leadership team has been involved in pavement condition and ROW asset surveys for agencies of varying size across the country including: Experience with Database Systems Like Lucity Lucity (also known as CentralSquare) is a leading provider in Asset Management for Public Works Departments across the Country. Lucity allows the Town to host a main platform/application for the management of all assets. Users of Lucity can easily identify assets owned, understand necessary repairs to managed assets, review asset performance, and determine the cost of replacement/treatment. Key tools include: • Community Development: With the Community Development solution, the Town can obtain data for policy decisions, analytics, and GIS integration. • Enterprise Asset Management (EAM): EAM allows the Town to leverage GIS technology to graphically display assets and respond to issues immediately. Town Staff can understand how each asset affects short/long-term budgets for the management of future expenditures •Fountain Hills, AZ •Goodyear, AZ •Denver, CO •Pueblo, CO •Memphis, TN •Arizona DOT •Albuquerque, NM •San Antonio, TX •Greenville, SC •Mesa County, CO •Scottsdale, AZ •Gilbert, AZ •Austin, TX •Grand Junction, CO •Salt Lake City, UT Town of Fountain Hills Pavement Condition and Evaluation Related Services 3 Proprietary Information • Citizen Engagement Software: This solution allows constituents to view service requests and other projects for ease of mind. Town staff can process and respond to requests faster while eliminating phone calls and manual processes. • Transportation Management: Lucity users can reduce potholes and repairs needed with advanced insight on preventative maintenance schedules and PCI compliance information. • Analytics: This tool allows users to create customized reports for the prediction of future behaviors and the discovery of patterns. With the customized dashboard, users can convert data into visualizations that provide insight into the community. The RAS team offers the Town of Fountain Hills unmatched subject matter expertise and knowledge ranging from managing and delivering municipal automated pavement data collection projects to pavement engineering and configuration of the analysis operating parameters of the Town’s Lucity management system. Our team is uniquely qualified to exceed the requirements of this project through the use of advanced data collection technology, powerful sensor-based algorithms for distress detection, Artificial Intelligence (AI) processing routines, and rigorous hands-on Quality Control (QC) by an experienced pavement engineering team. The RAS team is uniquely familiar with the Town of Fountain Hills legacy analysis configuration within Lucity in addition to local site conditions such as the varying construction design standards related to pre- incorporation and post-incorporation roadways. Project Manager, Mr. Thomason, and Assistant Project Manager, Mr. Kramer, stand ready to develop custom deterioration curves and rehabilitation activity costs for these pre-incorporation roadways. RAS’ Legal Information and Contract History Roadway Asset Services, LLC (legal name with EIN #85-1939454) has the following members authorized to act on the company's behalf: Bart Williamson, CEO; Scot Gordon, President; Zac Thomason, Senior VP; and Mark Kramer, Chief Data Officer. RAS’ retains a Principal Work Office in Austin, TX (6001 W Parmer Lane Ste.370-1102) and a Local Work Office in Chandler, AZ (321 W Curry St). RAS has been incorporated with the State of Texas for two years and is registered to do business in Arizona by the Arizona Corporation Commission (#23412705). RAS has never been involved in litigation or had a contract terminated. We pride ourselves on excellent communication protocols that establish mutual understanding. Our reputation for completing projects on time and within budget has led to long-term satisfactory relationships with our clients that result in multiple collection cycles. Experience and Qualifications of the Vendor Town of Fountain Hills Pavement Condition and Evaluation Related Services 4 Proprietary Information 7.2.2 Experience and Qualifications of the Vendor The RAS executive team is comprised of established industry veterans who have dedicated their careers to the field of pavement and asset management. RAS team members have performed over 200 pavement and asset management projects in the last 5 years in accordance with ASTM D6433 and AASHTO R 57. RAS offers the Town the most experienced data collection team to provide assurance that the collection and processing of data will be delivered on schedule. We have an outstanding record of completing projects of similar size and scale, on time and within budget. The RAS team advantage to the Town of Fountain Hills is as follows: • Municipal Experience – Unlike many other proposing firms, RAS exclusively performs Pavement Condition Assessments for municipalities of varying sizes. RAS has completed or is currently completing pavement condition assessments for Arizona Department of Transportation (ADOT); Denver, CO; Salt Lake City, UT; Albuquerque, NM; Grand Junction, CO; New Braunfels, TX; Charlotte, NC; Austin, TX; and Memphis, TN. • Advanced Laser Technology – RAS uses the most advanced 3D surface imaging technology available in the marketplace. The Laser Crack Measurement System (LCMS-2) technology and 360 Degree Camera for ROW Assets (Ladybug panoramic imagery) represent the most sophisticated hardware available for objective and repeatable condition assessments. The combination of technology/software will be utilized for the pavement condition assessment and the collection of street segment attributes. • Innovative Repair Analysis Scenario & Optimization – Project Manager, Zac Thomason, is familiar with the Town’s requirements for multi-year planning and repair recommendations as he managed the Town’s previous pavement condition project. An innovation that Mr. Thomason and Mr. Kramer would like to reimplement in the Town’s version of Lucity is the distinction between the pre- incorporation and post-incorporation roadways. The pre-incorporation roadways have a unique design and cross section that should be modeled with their own deterioration curves and more importantly, their own set of rehabilitation activity unit rates. • Field Pilot – One unique feature provided by the RAS team is the dedication to quality, which is initiated through a field pilot study at the beginning of the project. During the field pilot study, RAS’ Project Manager, Zac Thomason, MBA, and Senior Pavement Engineer, Scot Gordon, PE, IAM, will review site conditions on Town of Fountain Hills Pavement Condition and Evaluation Related Services 5 Proprietary Information select roadways (approximately 10-miles of roadway) with Town Staff for acceptance before the network wide pavement analysis is completed. Further information on the RAS field pilot can be found on page 15 of this submission. In addition, the Town of Fountain Hills roadways often suffer from oxidative damage before load associated challenges arise. Therefore, it is imperative that the configuration of Lucity mimics the Town’s adopted preservation strategy and surface treatment program of applying Slurry seals in the appropriate sequence. However, the system should also be flexible enough to accommodate for newly innovative preservation activities that the Town may not yet be harnessing. Lastly, Mr. Thomason and Mr. Kramer fully integrate the power of financial optimization through the Lucity system’s ability to identify Critical Roadways (those getting ready to drop into next rehab activity) and sequence them by their cost of deferral. Optimization is described in more detail on page 22 of this submission. Experience in Providing Services to Municipalities Unlike many other proposing firms, RAS is solely dedicated to providing pavement and asset management services to agencies throughout the Country. Throughout the last 2 years, RAS has worked with various municipalities and departments to improve the overall street networks. Below, is a sample list of completed and active projects and their associated scope of work. Test Miles In t e r n a t i o n a l R o u g h n e s s I n d e x ( I R I ) Pa v e m e n t E v a l u a t i o n Pa v e m e n t C o n d i t i o n I n d e x GI S S e g m e n t a t i o n RO W A s s e t I n v e n t o r y Pi l o t P r o g r a m a n d F i e l d Q A / Q C De t e r i o r a t i o n C u r v e s a n d M o d e l i n g AM S I n t e g r a t i o n Sy s t e m T r a i n i n g Pavement Condition and ROW Asset Survey 5,150 Charlotte, NC X X X X X X X Pavement Data Collection 5,000 Arizona DOT X X X X Pavement Condition and ROW Asset Survey 4,548 Albuquerque, NM X X X X X X X X X Pavement Data Collection 3,750 Austin, TX X X X X X X Traffic Sign Data Collection 3,750 Austin, TX X X X X Pavement Data Assessment 3,086 Denver, CO X X X X X X X X X Pavement Condition Survey 3,048 Memphis, TN X X X X X X X X Pavement Evaluation and ROW Asset Services 1,594 Corpus Christi, TX X X X X X X X X X Pavement Condition Assessment 1,500 Sarasota County, FL X X X X X X X X Pavement Condition Survey and ROW Asset Inventory 1,023 Durham, NC X X X X X X X X X Pavement Condition Survey 730 Salt Lake City, UT X X X X X X X X Pavement Condition Survey 654 Pueblo, CO X X X X X X X X Pavement Data Survey and ROW Asset Inventory 618 Denton, TX X X X X X X X X X Pavement Condition and Inventory Survey 608 Greenville, SC X X X X X X X X X Pavement Condition Survey 473 Kingsport, TN X X X X X X X X Pavement Condition Survey and ROW Asset Inventory 460 New Braunfels, TX X X X X X X X X X Pavement Data Collection 286 CTRMA X X X X X X X Professional Asset Management Services N/A San Antonio, TX X X X Pavement Condition Survey Project Client Name Town of Fountain Hills Pavement Condition and Evaluation Related Services 6 Proprietary Information Sample Projects and References City of Salt Lake City, Utah – Pavement Condition Survey RAS performed a pavement condition survey for Salt Lake City’s 730 test mile network. RAS provided GIS based deliverables and formatted data for an import into Cartegraph. RAS assisted City staff in presenting data to City Council regarding various funding amounts and strategies for improving the City’s PCI and its level of service. Prior to data collection, Mr. Rivera worked with the City’s GIS staff to identify the appropriate mileage for collection and review of the GIS segmentation provided in the City’s database. Appropriate segmentation was laid out based on a crossroad- to-crossroad section divider. A 10-mile pilot was conducted for early collection to validate the accuracy of the assessment deliverables. The evaluation project also included a technical report presenting the predominant distresses, statistical analysis of the condition results, and repair recommendations. The report provided results based upon surface type and division of functional classification. The results presented in the database and report were used to develop a cost-effective approach to maintenance, improving the City’s preservation techniques, and optimizing budgetary expenditures. RAS collaborated with the City during this project to review and compare the City’s historical condition data from 2017 with the data collected in the current evaluation. The purpose of this exercise was to update the existing pavement deterioration curves within the Cartegraph system. The City uses Cartegraph OMS as their pavement management system to manage pavement condition data, track maintenance activities, develop models for prediction of future performance, produce budget scenarios, and evaluate future funding requirements. Time Period of Project September 2021- June 2022 Project Budget $202,975 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Deterioration Curves -Cartegraph -Video Logger Client Name and Contact David Jones, Program Manager City of Salt Lake City 2001 S State Street N3-600 Salt Lake City, UT 84190 801-535-6425 David.jones@slcgov.com RAS Role RAS served as the Prime Contractor RAS Team Members Scot Gordon, Project Engineer Zac Thomason, Assistant Project Manager Bart Williamson, Project Principal Mark Kramer, QA/QC Manager Rafael Rivera, Data Collection Manager Town of Fountain Hills Pavement Condition and Evaluation Related Services 7 Proprietary Information Albuquerque, NM – Pavement Condition Survey & ROW Asset Inventory RAS completed a pavement condition survey for the City’s 4,548 lane mile network of roadways and alleys. In accordance with ASTM D6433, RAS completed the survey using its fleet of RAC vehicles. The RAC vehicle drove all roads in both directions to provide the most expansive collection for the City. Additionally, RAS completed an extensive ROW inventory and condition assessment of the following assets for the City: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Imagery for pavement evaluation and asset extraction was captured with the RAC automated data collection vehicle. The RAC vehicle is equipped with a second-generation Laser Crack Measurement System (LCMS-2) for automated pavement data acquisition, Ladybug 360 camera system for capturing right-of-way imagery, and a laser profiler that includes two-line lasers for capturing roughness and ride data. The project provided efficient and cost-effective data extraction in a GIS environment that was seamlessly integrated into the City’s VUEWorks asset management software system. For the traffic sign inventory, RAS extracted nearly 90,000 signs and provided the City with the following attributes: Asset ID, X,Y location, MUTCD code, sign text, photo image link, physical condition rating (good, fair, poor), location, post total, sign facing direction, travel direction, obstructions, legend color, back color, hump case, support structure type, and comments. Time Period of Project March 2021- July 2022 Completion Completed on time and within budget Project Budget $2,841,146 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Review Soil Conditions -PMS -Video Logger -ROW -Deterioration Curves Client Name and Contact Doug Rizor, Systems Programmer City of Albuquerque 1 Civic Plz NW #7057 Albuquerque, NM 87102 505-366-4020 rizor.d.abq@gmail.com RAS Role RAS served as the Prime Contractor RAS Team Members Scot Gordon, Project Manager Zac Thomason, Assistant Project Manager Bart Williamson, Project Principal Rafael Rivera, Data Manager Mark Kramer-QA/QC Manager Town of Fountain Hills Pavement Condition and Evaluation Related Services 8 Proprietary Information Durham, North Carolina – Pavement Condition Survey RAS performed a pavement condition survey for the City of Durham’s 1,540 lane mile network. The project consisted of a PCI Survey and ROW asset inventory covering traffic signs, curb and gutter, and crosswalk slopes. Data collection for the pavement condition survey was completed with RAC vehicles, in accordance with the ASTM D6433. The RAC vehicle is equipped with an inertial profiler for Roughness and Ride measurements, a second-generation Pavemetrics Laser Crack Measurement System for pavement imagery, Point Gray Ladybug 5+ 30 MP 360 camera for asset capture, and an Applanix POS/LV for capturing GPS coordinates. Following collection, data was imported into PAVER. 36,416 traffic signs were inventoried and assessed with the following attributes for each sign including: X,Y location, street name asset is located on, Asset ID, Facility ID, photo image link, MUTCD code, physical condition rating (good, fair, poor), and support type. RAS also assessed curb and gutters for 1,075 lane miles and provided the following attributes: Asset ID, Facility ID, photo image link, physical condition rating (good, fair, poor), painted color, and material type. Lastly, RAS inventoried 1,229 crosswalks. As the Project Manager, Mr. Gordon met with the engineering staff to refine budget requirements and develop a 10-year maintenance plan to improve the efficiency of treatments and decrease the necessity for additional funds. After presenting results to the engineering staff, Mr. Gordon met with the City Council during budget planning meetings to present the findings and the recommended maintenance plan. Time Period of Project July 2021- December 2021 Completion Completed on time and within budget Project Budget $374,712 2021 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Review Soil Conditions -ROW -Deterioration Curves Client Name and Contact Clint Blackburn, Project Manager City of Durham 101 City Hall Plaza, Ste. 3100 Durham, NC 27701 704-301-7193 clint.blackburn@durhamnc.gov RAS Role Key Members worked at RAS RAS Team Members Scot Gordon, Project Manager Bart Williamson, Assistant Project Manager Rafael Rivera, Data Collection Manager Sandra Marrero, Pavement Engineer Mark Kramer, QA/QC Manager Key Positions Town of Fountain Hills Pavement Condition and Evaluation Related Services 9 Proprietary Information 7.2.3 Key Positions - Roles and Responsibilities Organizational structure is important to understand as it can often shed light on whom a municipal agency will really be working with on any given assignment. While the Town can select any qualified data collector as a short-term vendor, RAS prefers to develop long term consultative relationships with our clients that result in turn-key pavement management implementations that exceed client expectations. The key personnel assigned to this project are all long-time veterans of the industry and have extensive experience in pavement distress field rating, Pavement Condition Index (PCI) processing, multi-year prioritization, Lucity configurations, and custom database integrations. The RAS team is composed of industry experts that provide Best-in Class pavement management programs. The RAS team uses previously established roles to ensure seamless transition of project ownership. Role assignments are as presented below: • Project Manager: Zac Thomason, MBA, has over 16 years of experience in pavement management, ASTM D6433 automated data collection, financial optimization, and complete Lucity integration. Mr. Thomason has managed the previous pavement condition project for the Town and provided ad-hoc and on-call services for the Town as it relates to multi-year planning, repair recommendations, budget optimization, and Town Council Meetings. Mr. Thomason will deliver final reports and establish channels of communication between the Town’s Staff and Town of Fountain Hills Pavement Condition and Evaluation Related Services 10 Proprietary Information the RAS Team. Mr. Thomason will also provide analysis scenarios and Lucity training for the Town’s Staff. Lastly, due to his local presence, Mr. Thomason will attend Town meetings in person and be onsite during the field pilot review with Senior Pavement Engineer, Scot Gordon. • Assistant Project Manager: Mark Kramer, PE, MBA, has 24 years of experience in automated data processing routines, commercial off-the-shelf software, data management, pavement analysis, and data integration. Mr. Kramer worked with the Town during the previous pavement condition survey to load the inspection data to Lucity, configure the operating parameters of the analysis, and run the Lucity budgetary modeling. Mr. Kramer will provide QA/QC checks of data to ensure that automated interpretations of distresses match what is visually represented. As an optional service, Mr. Kramer could also provide onsite Lucity training if this is not supplied by CentralSquare representatives. • Project Principal: Bart Williamson has over 30 years of project insurance and management experience and has worked in the transportation industry for over 16 years. Mr. Williamson will coordinate project needs and resources to ensure high- quality deliverables are received in a timely manner. • Senior Pavement Engineer: Scot Gordon, PE, IAM, has over 30 years of licensed Professional Engineering experience in pavement engineering, design, and transportation planning. Mr. Gordon will review distress interpretations and provide expertise in pavement management optimization. Mr. Gordon will perform a 10-mile field pilot study to make necessary corrections to processing routines and review quality assurance measures with the Town’s Staff. • Data Collection Manager: Rafael Rivera has 12 years of experience in automated pavement and ROW data collection field efforts. Mr. Rivera is responsible for updating schedules based on collection status, overseeing the daily operation crew, and initiating/reviewing the evaluation process for pavement and ROW assets. • Project Engineer: Sandra Marrero, EI has 8 years of experience evaluating pavement conditions, processing pavement ratings, preparing reports, and performing maintenance budget scenarios. Ms. Marrero will assist in the development of a final report. Project Approach Town of Fountain Hills Pavement Condition and Evaluation Related Services 11 Proprietary Information 7.2.4 Project Approach Project Understanding RAS understands the Town of Fountain Hills is seeking a qualified vendor to conduct a block-to-block pavement condition assessment on 390 lane miles of roadway. The pavement condition assessment will be conducted utilizing a Roadway Asset Collection (RAC) vehicle that is equipped with the most advanced 3D surface imaging technology, IMU enabled GPS, differential encoder, and a Ladybug 360 degree camera for ROW capture. RAS will calculate an ASTM D6433 Pavement Condition Index (PCI) score using the extent and severity distress data captured in the field. While conducting the pavement condition assessment and listed as an optional service in the RAS fee structure, the RAC vehicles can also capture ROW attributes for traffic signs, pavement markings, excess pavement in the gutter pan, and speed humps. The pavement data will be processed per street segment for the entire roadway network using the continuous and detailed 20-foot linear samples acquired by the RAC Laser Crack Measurement System (LCMS- 2) vehicle. RAS will adopt the Town’s existing GIS centerlines and Segment ID’s that were assigned during the last round of data collection. As conducted on previous assignments in Fountain Hills, the RAC vehicle will two pass test arterials and collectors while single pass testing residential roadways, resulting in approximately 203 survey miles. The detailed data collected by the RAC vehicle will eventually be rolled up to the segment level for PCI reporting purposes. The Town will receive the condition and analysis results in several formats such as Excel Spreadsheets, geodatabases for plotting within a GIS environment, ESRI Storymap’s, and an RAS Microsoft Power BI Dashboard that displays the results of the Lucity analysis using presentation quality graphs and illustrations. Pavement Data Collection Equipment To complete the automated pavement condition survey, the RAS team will utilize RAC vehicles from the fleet of four (4), equipped with: • The LCMS-2 camera is a downward-facing laser array providing images used to evaluate data that conforms with ASTM D6433 protocols, which uses two 1- millimeter-pixel resolution line scan cameras to provide a customized digital condition rating system to collect user defined severity/extent-based pavement distresses and rutting. Town of Fountain Hills Pavement Condition and Evaluation Related Services 12 Proprietary Information • The pavement distress type, density, severity, and extent are collected with the LCMS-2 and are used to calculate a Pavement Condition Index (PCI) score, between 0-100, that represents the condition of 100% of the driven lanes. • Point Gray Ladybug 5+ 32MP 360-degree High-Definition camera (utilized for accurate ROW asset capture, extraction, and pavement QA/QC) is far superior to multiple independently mounted HD cameras. • Linear distance measuring to within +/-0.5%. • A class 1 inertial profiler for simultaneously capturing dual-wheel path (left and right) International Roughness Index (IRI) measurements to the hundredth inch, in accordance with AASHTO R48. The profiler has gone through ASTM E-950 certification and has been independently certified by Texas A&M Transportation Institute (TTI) and the National Center for Asphalt Technology (NCAT). The inertial profiler meets the requirements and operates in accordance with AASHTO Standards M 328, R 57- 10, R 56-10, and R43M/R43-7. • Applanix POS/LV with DGPS (Provides accurate internal GPS navigation for geo-locating pavement and right of way asset information). All subsystems for the RAC vans are integrated using tight synchronization between all data streams on the truck in real-time, referenced to both time and distance. All sensor locations are coordinated to the vehicle’s reference point, together with the GPS and IMU hardware, using 3D translations and rotations. This allows the final world coordinates of all sensor data streams to be calculated and integrated. The methods for automated data collection and pavement condition rating are repeatable and defensible. Town of Fountain Hills Pavement Condition and Evaluation Related Services 13 Proprietary Information RAS is fully capable of meeting the scope requirements as our team owns four (4) RAC vehicles and retains a strategic partnership with our equipment manufacturer and assembler that can result in mobilizing as many LCMS-2 vehicles as needed for a reasonable project completion timeline. RAS’ access to state-of-the-art equipment ensures project timeline goals are met as the team can supplement additional RAC vehicles or transfer equipment at a moment’s notice for instances of equipment malfunction. Our fleet of RAC vehicles provides the Town an additional line of security, as the equipment is less than a year old. Collection and Provision of High-Resolution Panoramic Digital Imagery The RAS team will utilize RAC vehicles to conduct the pilot and network wide pavement and asset data collection on the Town’s maintained road network. All collected pavement and ROW imagery will be provided in appropriate state plane coordinates, while being collected in a continuous pass at posted roadway speeds. The high-definition panoramic Ladybug camera will be used to inventory and capture right-of-way (ROW) assets for extraction of pavement markings, speed humps, traffic signs, and other assets if selected by the Town. All captured images will be delivered to the Town in .jpeg format and processed at 15-25ft intervals for the entire survey area. The images will be collected as a 360-degree right-of-way panorama, including forward, rearward, and downward pavement viewing images. Each image will be electronically tagged with location information for plotting within a spatial environment. Traffic control will not be required since the RAC vehicle will collect all data in motion and is not required to stop or disrupt traffic during operation. As a value added service, RAS believes that delivery of ALL Image Views is paramount to Town review and as such all imagery (including the LCMS downward imagery) will be delivered to the Town of Fountain Hills at no additional cost. Sample Imagery of ALL Views Delivered to Town at No Charge Town of Fountain Hills Pavement Condition and Evaluation Related Services 14 Proprietary Information Detailed Quality Assurance & Quality Control Work Plan While the 10-mile pilot hosted by Scot Gordon and Zac Thomason will illustrate the completeness and accuracy of the RAS data stream. RAS has also developed a detailed 30-page Data Quality Management Plan (DQMP) to provide our clients with a systemized method for assuring data is representative of the conditions present. Included in the DQMP is a description of condition survey procedures, data collection vehicle and system calibration/verification, range of accuracy, data checks, verification by trained engineers, roadway segment review/verification, and integration into asset management programs. All RAS projects include the establishment of a field pilot study that allows the collection, processing, and review of condition data to ensure data is representative of the expectations and needs of Town staff. Following this step, corrections to processing routines are made based on standard construction practices/soil conditions. The focus on data quality at the initiation of the project saves the Town time/money and provides high- quality deliverables that can be utilized in practice. We can supply the Town of Fountain Hills with our published 30-page DQMP at the request of Town Staff. The documents length and technical nature didn’t make it suitable for inclusion with this proposal submission. Quality Assurance Step #1 – Network Database Review (Gap Analysis) While a simple routine in every project, the cornerstone to project initiation is conducting a complete diagnostic of the roadway network, including a full and thorough assessment of the Town’s GIS centerline and Lucity inventory database. This will include a review of the Town’s data requirements (i.e., what information is needed/desired) and subsequent data gap analysis (what is missing). RAS will include the following in this initial review: a. Base inventory information, (i.e., Functional Class, lengths, areas, surface type, etc.) b. Historical condition information c. Status of survey history d. Construction and maintenance history e. Review & update of maintenance and rehabilitation treatments and unit costs f. Review & update of existing pavement deterioration curves g. Review & update of Lucity analysis operating parameters to ensure the Town is maximizing the latest updates Town of Fountain Hills Pavement Condition and Evaluation Related Services 15 Proprietary Information Quality Assurance Step #2 – Mobilization/Calibration/Pilot/Kickoff At the outset of the project, RAS will work in conjunction with the Town’s Staff to review the Town’s existing GIS centerline files and legacy Lucity Street Segment Inventory for use in this project. After an initial review, RAS will conduct a kickoff meeting with Town staff to discuss the GIS files, deliverable formats, and additional data needed by RAS for preparation, process for interim review, and project administration. During the kickoff meeting, team members will also determine a pilot area of approximately 10 miles for collection and review of all deliverables by Town Staff, obtain a collection letter, and determine areas that are of greatest priority for collection or that require special timing for collection due to festivals such as Fountain Hills Music Festival, Ballet Under the Stars, Turkey Trot, or other events. The importance of the field pilot cannot be understated as it has become a routine milestone for the RAS Team on all pavement condition projects. The pilot allows RAS to collect, process, and review condition data with Town Staff to ensure accuracy with the data collection and interpretation protocols. In addition to the Town’s eventual review of the 10-mile pilot data, the review of the RAS condition data will be hosted by Senior Pavement Engineer, Scot Gordon, PE, IAM, and Project Manager, Zac Thomason, in the field, where they will review site conditions with Town Staff. The importance of this step is to make necessary corrections to the processing routines that result from local standard construction practices/soil conditions and to ensure accuracy with the approach. As a cornerstone to the development of quality data deliverables, Scot Gordon, PE has performed a pilot data field validation with agency staff on hundreds of pavement condition surveys. Throughout his career, Scot has worked with various agencies on the field pilot data validation including but not limited to: • San Antonio, TX • Houston, TX • Durham, NC • Virginia Beach, VA • Chicago MAP, IL • Indianapolis, IN • Fort Worth, TX • Salt Lake City, UT • Corpus Christi, TX • Denver, CO • Albuquerque, NM • Charlotte, NC “The pilot data field validation was crucial to our acceptance and buy-in on our pavement quality assessment. Mr. Gordon explained each condition, the methods of measurement of the distresses, and how the PCI score calculations could help us understand the meaning and relationship of the values to our perceptions of pavement performance. This personalized process allowed us to make maintenance decisions from the data provided with confidence.” Zayne Huff, City of Southlake Town of Fountain Hills Pavement Condition and Evaluation Related Services 16 Proprietary Information Quality Assurance Step #3 – Subsystem Monitoring In The Field During the survey, the collection software monitors the GPS subsystems and alerts the operator if the GPS feed drops out or if GPS quality is compromised. It displays the satellite count, which should normally remain above four (4). If the satellite count falls below that threshold due to the vehicle entering a tunnel, driving under a bridge, or driving in a region with tall buildings, this will be displayed for the operator. The IMU will provide acceleration-based corrections during this time to ensure that GPS accuracy is maintained as much as possible. Depending on the grade of IMU used in the system, even total GPS outages of 1-3 minutes can be tolerated with almost no degradation in positional accuracy. The collection software monitors the status of the subsystems that have been installed and enabled. A summary screen is displayed for the operator which shows representative data values and images in real-time, along with any warnings or errors being generated based on real-time diagnostics. As part of standard practice, the operator continuously monitors the validity of data being reported by the quality monitoring systems. The RAS team will also review a randomized sample of images to ensure that it complies with the requirements of the specifications throughout the course of the network matching and event QC. Upon completion of the network matching, an image report shall be generated with the total image count compared with that expected for each road. Daily Progress Reports are produced by uploading sensor, GPS, and event data and matching against the road network definition. Progress reports include the following, road sections collected, length discrepancies, and remaining sections to be completed. Calibration of the laser profiling system includes laser sensor checks and block tests to ensure the accuracy of the height sensors, accelerometer calibration “bounce tests” to verify proper functioning of the height sensors and accelerometers, and distance calibration to ensure accuracy of the DMI. Calibration of the DMI and some accelerometers occurs during field testing, and each is checked and recalibrated on a regular basis. RAS has a proven Quality Assurance/Quality Control procedure for all RAC projects that begins with our Data Quality Management Plan (DQMP). The systems and data types collected by the RAC vehicle are: • Vehicle Travel Distance from Distance Measurement Instrument (DMI) • Vehicle Position from differentially corrected GPS (DGPS) • Vehicle Orientation (pitch, heading, roll) from the Inertial Measurement Unit (IMU) • Longitudinal Profile Roughness (IRI) • Ladybug 5+ 360-degree Images • Laser Crack Measurement System (LCMS) 2D and 3D Images Town of Fountain Hills Pavement Condition and Evaluation Related Services 17 Proprietary Information Quality Assurance Step #4 – Automated Crack Analysis & Engineer Review After data is collected in the field and uploaded to the office environment, it is imported using the RAS pavement rating tool Road TRIPTM (Technical Rating Intelligence Program). The import process creates mappings to the data so that users do not need to keep track of where the data is stored on central data server(s). At this stage, the major data processing tasks also occur, such as generation of right-of-way and pavement image streams; calculation of profile, roughness, rutting, detection of cracks, lane-markings, man-made objects, and other distresses. The automated crack analysis detects cracks which are overlaid on the pavement images and offset to assist with the verification of the detected cracks. During reporting, the distress cracks are defined by road zone and accumulated according to the units defined in the client specification. The severity levels are identified based upon the defined limits (ASTM D6433) and verified for resolution through visual quality control checks of image files. Where density metrics are required, these are determined using the length of the interval being reported and the width of road zones included. An experienced pavement inspector will perform QC to confirm the distresses and severity of the pavement condition data collected by the automated technology. This manual quality review is performed, in accordance with the principles of the ASTM D6433 standard, using the LCMS pavement images gathered during collection with the distresses superimposed and color coded, such as what can be seen in the corresponding image. The RAS approach is truly a combination of objective based laser sensors, powerful algorithms, artificial intelligence (machine learning), and personal review by a Professional Engineer. Town of Fountain Hills Pavement Condition and Evaluation Related Services 18 Proprietary Information Optional Row Asset Data Collection The panoramic ROW images from the Ladybug 360 camera system will be provided as an additional database submitted in a GIS compatible shapefile and/or geodatabase. These images will be captured for all selected assets within the Town’s maintained roadways and will include detailed attributes and conditions for potential assets such as: pavement markings, pavement striping, speed humps, traffic signs, and can be expanded to virtually any other asset that can be identified in the HD 32MP imagery. With input from Town staff, the following attributes for pavement markings will be identified: AssetID, X,Y location, photo image link, type (left/right/straight arrow, only, xing, bike, lane, merge left/right arrow, slow, etc.), marking color, and physical condition (good, fair, poor). Additionally for pavement striping typical attributes also include length, width and lane configurations. The HD images can then be post-processed using RAS software to collect attributes for each asset type captured. For example, Traffic signs/supports, which are listed as a point feature, are commonly captured with the following attributes (the final list of attributes will be determined with input from the Town staff): AssetID, X,Y location, sign type (MUTCD code), sign text, photo image link, physical condition rating (good, fair, poor), location, support structure type, sign direction, and comments. The RAS asset extraction system is not limited to these assets as we can inventory and extract attributes on nearly any asset that can be identified in the images. Other common roadside features for capture include sidewalks, pedestrian curb ramps, curb/gutter, traffic signals, streetlights, fire hydrants, bus stop shelters, medians, and many others. Town of Fountain Hills Pavement Condition and Evaluation Related Services 19 Proprietary Information Data Preparation, Delivery, & Import into the Lucity Software As a strategic business partner of Lucity, the RAS team is commonly tasked with importing new pavement inspection data into an agency’s production Lucity environment. The RAS team has a strong working relationship with Jim Muller, CentralSquare Account Executive, Steve Schultz, CentralSquare Product Manager, and Matt Miner, CentralSquare Principal Solutions Architect, who are intimately familiar with the Lucity pavement module and RAS integration routines. A typical Lucity import happens in two phases as follows: Phase I: Test Environment – most agencies operating an enterprise system such as Lucity have a test environment specifically set up for vendors to test a data load prior to moving into production. During this stage, the RAS team formats the segment level distress extent and severity data for import into the Lucity pavement module software. The data is loaded as a new inspection such that it DOES NOT overwrite any legacy data within the software. Old inspections are retained and simply no longer utilized for budgetary modeling purposes. Data formats for Lucity users include rolling up the RAS detailed inspection data to match the Town’s Lucity segmentation and ensuring all data is linked to the appropriate SegmentID. The distress types are confirmed to be in the correct order and distress density data (PCI, RI, and optional SI) populated. In addition, the Lucity GIS Manager will be validated to ensure it retains full synchronization with the implemented Lucity database. While RAS routinely imports data to Lucity, we find it imperative to begin with a test environment to fully ensure data integrity. Phase II: Production Environment – Upon completion of the import to the test environment, the RAS Team has our Lucity support team review the loaded data to ensure there are no gaps in the data structure or format. Upon acceptance of Lucity, the RAS team moves the database into the Town’s production environment, generally in off- hours to ensure minimal downtime for Town Staff and Services. RAS has the team, resources, and expertise to conduct a seamless production load to Lucity. Town of Fountain Hills Pavement Condition and Evaluation Related Services 20 Proprietary Information RAS Lucity Configuration Workflow While running the models themselves might seem straight-forward, the RAS approach to such an analysis involves the following sequences and client engagements during the process: • Current database review – most issues can be resolved at the initiation of a project by completing a brief review of the Town’s existing GIS centerlines and Lucity inventory setup. All RAS projects begin with a review by our Project Manager, Zac Thomason. Given Mr. Thomason’s familiarity with the Town’s legacy inventory and Lucity analysis parameter setup, he will discuss the current inventory and configuration adoption with Town staff. Any recommended changes to the segmentation or budgetary model configuration will be discussed at this stage. • Maintenance & Rehabilitation Setup – to ensure the results of the budget model runs meet the Town’s expectations, Mr. Thomason and Mr. Kramer will discuss the Town’s current Maintenance and Rehabilitation practices to ensure the Lucity system is setup to mimic/model real world practices. This includes reviewing Min/Max PCI, Breakpoint PCI, decision trees for treatments, costs, and reset PCI values. As a Professional Engineer with extensive pavement experience, Mr. Kramer is well versed with the application of pavement rehabilitation techniques, trigger points, real-world impact to PCI, and life cycles. As a part of this process, RAS will work with the Town to determine the right treatment (prescription) at the right time. RAS can also discuss other treatments that the Town may or may not be using, their benefits, their return on investment, and their adoption across the Country. The results of the scenarios would include investment benefit information indicating the cost per square foot of benefit for each maintenance strategy based on maintenance rehabilitation costs. This can be reported in a number of ways, but most commonly as the cost per square foot to increase the PCI by increments of 1 point. • Deterioration Curves – forecasting pavement conditions within Lucity requires a detailed set of pavement deterioration curves for each roadway traffic classification, pavement material type, and strength designation. Mr. Gordon, Senior Pavement Engineer, will review the existing deterioration curves to ensure they reflect realistic degradation rates in the Town. If alterations to the curves are Town of Fountain Hills Pavement Condition and Evaluation Related Services 21 Proprietary Information necessary, Scot will lead the update with the team prior to the production data load into Lucity. Scot Gordon and the RAS team have developed hundreds of deterioration curves based on collected data. Scot will work with the historical data from Fountain Hills, along with the collected data from this project, to develop updated and further refined deterioration curves for each combination of street classification and pavement surface type, representative of the Arizona climate. RAS has protocols in place that preserves historical collection data and utilizes past surveys to assist in modeling through documenting the change in conditions between past surveys and the current collected data. RAS can make the comparisons between the surveys easily viewable for Town staff to determine if outliers exist. An example of data integration between collection cycles comes from Scot and the RAS Team’s work with the City of San Antonio, Texas. Scot provided the City a method to determine the age of each pavement section and refine the deterioration curves by evaluating the decrease in PCI per year from historical pavement evaluation data. The delta decrease, or difference in PCI value per year, along with the range of PCI value of the roadway provided guides to shape the deterioration curve at each age. • Supersegment Development – the Lucity pavement module runs budgetary models using a “Supersegment” layer within the application, which is simply individual segments stitched together to form a logical project or management section. The benefit of this Supersegment feature within Lucity is that it runs the budgetary scenario at the project level, producing real-world rehabilitation plans that are ready for Town review, modification, or acceptance. The RAS team will also provide recommendations to Town staff for best practices in developing practically sized Supersegments to yield model results that can be acted upon. Typical constraints used when building Supersegments includes relative condition, classification, and an upset limit to prevent projects from becoming too large. A Microsoft Access database of the final configuration, setup, and models will be provided to the Town. Town of Fountain Hills Pavement Condition and Evaluation Related Services 22 Proprietary Information Infusing Optimization into the Lucity Analysis Optimization is a broad-based term that has many different definitions. For most pavement management systems, optimization is the ability to prioritize a multi-year rehabilitation plan using several different factors that are important to the Town and based on sound engineering constraints. For example, RAS commonly configures the Lucity pavement management system to assign a different set of maintenance and rehabilitation activities for roadways of different pavement type, traffic, and strength. With the rehabilitation and maintenance activities set up, an RAS and Lucity analysis assigns “Criticality” factors to every segment that assist in prioritizing the multi-year plan and the development of a financially optimized rehabilitation plan. Critical segments are simply those that are within 2-4 points of falling into the next rehabilitation category. However, this is only the beginning of an RAS and Lucity Optimized Multi-Year Plan. The RAS team also includes a true Financial Optimization Framework (FOF) as a part of the Lucity analysis. With the critical segments all defined within the analysis, the next step is to sequence the optimization plan by the “Cost of Deferral”. This financial optimization sequence allows the analysis to consider the future costs of deferring segments and allowing them to fall into the next more expensive rehab category. By calculating the cost of deferral, the sequence identifies the “Need Year” of each segment and prioritizes the highest cost of deferrals while focusing on selecting critical roads that are within a few points of dropping into the next category. Zac Thomason, Project Manager, and Mark Kramer, Assistant Project Manager, are well versed in the optimization logic within Lucity and actively work with the CentralSquare development team to ensure peak performance in configuration. To further enhance upon optimization, Senior Pavement Engineer, Scot Gordon looks forward to visiting with Town staff on other innovative considerations to pavement management such as including PCI of curb and gutter in selecting roads for maintenance; whether or not to deduct for potholes if the Town has a pothole repair crew; how to get all council districts above a specific PCI threshold; and focused analysis on top traveled corridors where you are improving the level of service on the roads receiving the greatest traffic while also analyzing the impacts to the remainder of the network. Town of Fountain Hills Pavement Condition and Evaluation Related Services 23 Proprietary Information Lucity Budget Model Development & Final Report Summary The RAS Team separates itself from our competition through our devotion to the most critical aspect of the project, which is collaborating with the Town on how to take the objective condition data and utilize it to make meaningful decisions involving the Town’s infrastructure. In addition, RAS can supplement a standard analysis with ESRI Storymap’s or even a Microsoft Power BI Dashbaord. RAS follows the “AASHTO Transportation Asset Management Guide – A Focus on Implementation” which provides a framework for organizations to utilize and update the management of their assets to improve decision-making, monitor performance, and support integrated decisions in programming projects. The observed distresses and calculated PCI values will be used within Lucity to rank projects using distress types indicating load, non-load, and environmental related causes of each distress. Running budgetary models within a pavement management system requires a deep understanding of the database structure behind the application. The RAS approach to budgetary modeling will involve up to 8 pavement management scenarios using different philosophies, budget levels, and distributions. While RAS will define the scenarios to be run with Town staff, at a minimum the following questions should be answered with the scenarios: • How much annual funding is required to maintain existing pavement conditions? • What will the estimated network PCI be over the next 5 years if current funding levels are maintained? • How much funding will be required to target a specific PCI over the next 5 years? • What will the estimated PCI be in each Council District? • What budget is required to control the growth in backlog? • What are the recommended pavement strategies? Town of Fountain Hills Pavement Condition and Evaluation Related Services 24 Proprietary Information RAS will also consult with Town staff to develop models utilizing different types of rehabilitation strategies (worst first, best first, most economic, need year, etc.). RAS understands that getting buy-in from Town Administrators and Elected Officials means developing a long-range rehabilitation plan that considers local priorities. The RAS team will ensure that already approved rehabilitation work is programmed into the budgetary models for selection during the run. In addition, RAS will consult with Town staff to identity the total cost (mill, overlay, traffic control, striping, etc.) of each rehabilitation method. RAS will provide the Town with a final report/executive summary including study objectives, methodology, road inventory, a summary of current pavement conditions, PCI values, recommended maintenance needs, street prioritization lists, and probable costs. In addition, the Town will receive an electronic database consisting of statistical charts, graphs, summary tables, and area maps illustrating all PCI results, pavement type, overall road quality, and findings from the pavement evaluation. The summary report will be provided for review by Town staff and modified based on comments to produce a final report which will be delivered as a bound report and in Microsoft Word (.doc and .docx) and Adobe (.pdf) format. Collected data will be formatted as an ESRI Geodatabase. Additionally, the pavement condition survey data will be imported into Lucity for use in budget analysis, and repair planning and prioritization. Council Presentations The RAS team will provide a public presentation to the Town Council, including data, charts, and all final summary report data to showcase the results of the pavement condition survey. Mr. Thomason has extensive experience preparing and presenting results of pavement and asset conditions assessments, as well as pavement budget scenarios and maintenance plans to Councils and Commissions as final reports. This is a standard scope that we provide to all our asset management clients. Zac has worked with County Commissions or Town Councils with several agencies including Fountain Hills, AZ; Prescott, AZ; Pasadena, CA; Long Beach, CA; Flower Mound, TX; Steamboat Springs, CO; and Minnehaha County, SD to name a few. Town of Fountain Hills Pavement Condition and Evaluation Related Services 25 Proprietary Information Approach to Contract Management RAS utilizes the Project Management Body of Knowledge (7th edition) to define and adhere to the principles of planning. This guide provides a breakdown of general management including methods for planning, organizing, staffing, executing, and controlling the operations of an organization. RAS emulates organizational strategies established by the guide to develop clear lines of communication for the successful completion of the Town’s goals. Perspective on Partnering and Customer Service RAS’ philosophy on project ownership is simple and centered on the development of a collaborative partnership with the Town’s Staff. While any vendor can collect some form of condition data and move on to the next project within a few weeks, RAS prides itself on collaboration with our clients to develop best in class pavement management programs that result in a long-term relationship between RAS and the Town. Our relentless dedication to client satisfaction has resulted in repeat projects from municipalities. By conducting a collaborative field pilot validation study (further described on page 15 of this proposal submission), RAS is acquainted with the Town’s goals for the collection project. The transparency of goals enables RAS to provide data and pavement management system integration that works for the Town’s needs. Scheduling and Staffing RAS retains two Professional Engineers with over 50 years of combined experience. In addition, RAS’ Project Manager and Principal have been leading ASTM D6433 pavement condition projects for a combined 30 years. RAS has four Pavement Data Collection teams and will designate a minimum of one RAC vehicle (2 team members) for project completion within the allotted schedule. The Pavement Data Collection team will collect condition data seven days a week to account for natural delays caused by weather. Collection protocols ensure that the schedule will remain on time and within budget. Town of Fountain Hills Pavement Condition and Evaluation Related Services 26 Proprietary Information Alternate Approach: RAS Data Viewer & Videologer If the Town desires web-hosted condition photos, as an alternative additive service, RAS can provide the Town with the RAS Video Logger which is a web hosted full-service image viewer that allows our clients to select a section of roadway from the GIS-based map to visually display the inventory elements and the results of their survey. The viewer is hosted on a reliable web platform such as Amazon Web Services (AWS). The RAS Video Logger allows the Town to load pavement and ROW imagery for a specific location within the Town and sequentially travel down the roadway. If needed within the video logger, the Town can load high-resolution images to provide more detailed site investigation while displaying PCI, IRI, and Rut index data for the selected section. In addition, the Video Logger houses the Ladybug Panoramic ROW imagery, LCMS downward pavement imagery, PCI scores, and right of way inventories. Following the Pavement Condition Assessment, all LCMS-2 camera imagery will be loaded to the videologger with each image resulting in 1 mm-pixel resolution and horizontal resolution of 4,000 pixels. The benefit of having the LCMS imagery on the same platform as the Ladybug imagery is the ability to use the forward facing camera to see what a typical driver would see from a windshield while comparing it against the downward LCMS laser array that focuses only on the pavement surface itself. The imagery captured from the LCMS-2 camera will display various pavement distresses for asphalt concrete including cracking (alligator, block, edge, longitudinal, transverse, joint reflection), patching and potholes (patching and utility cut patching, potholes), surface deformation (rutting, shoving, depressions, bumps and signs, corrugation), surface defects (bleeding, raveling, weathering), and miscellaneous distresses (railroad crossing). Project Schedule Town of Fountain Hills Pavement Condition and Evaluation Related Services 27 Proprietary Information Milestones and Deliverable Schedule One way RAS optimizes its field data capture is by collecting pavement condition data 7 days a week, which allows our team to remain ahead of schedule when events such as storms or other weather-related events do occur. RAS anticipates utilizing one RAC vehicle as the field survey will take approximately 1 to 2 weeks depending on weather. RAS will prepare and monitor the locations of large-scale events and festivals like Fountain Hills Music Festival, Ballet Under the Stars, Turkey Trot, or other events to avoid high congestion periods and closed roads. The RAS management team has an outstanding record of completing projects similar in size and scale on time and within budget. The schedule presented below has been developed around a strategic objective of completing the roadway data collection effort, field pilot review, PCI processing, Lucity load, Lucity configuration, budgetary modeling, and final report within a five and a half month timeline to accelerate the Town’s desired schedule. Should the Town add additional right of way asset inventories to the scope of work, the inventory would be developed concurrently with the pavement condition data and within the existing schedule. Anticipated Project Milestone: Notice-to-Proceed………………………10/10/2022 Kick-Off Meeting………………………..10/17/2022 – 10/21/2022 Phase I Report………………………….02/27/2023– 03/10/2023 Phase I Council Presentation…………03/27/2023 – 03/31/2023 Phase II Lucity Implementation……….02/27/2023 – 03/10/2023 Project Completion……………………..03/31/2023 The anticipated project milestones are dependent upon receipt of the notice to proceed and Town purchase of the Lucity software for completion of Phase II. RAS can still maintain the Phase I report schedule if the purchase and install of the Lucity software is delayed. We can maintain this schedule as RAS retains Lucity licenses for in-house analysis purposes. Task Days PROJECT INITIATION Project Initiation, Kick-Off, & Centerline Identification 12 Field Mapping Development, Segmentation Review, & Routing Setup 51 Pavement Width Verificaiton & Measurement 39 Roadway Asset Collection (RAC) Vehicle Mobilization/Calibration 3 RAC Pilot Survey Area - 10+ Miles 3 RAC Pavement Distress & Imagery Collection 14 DATA MANAGEMENT Pavement Evaluation, AI Processing, & QC 36 Pilot Data Review with Town Staff 1 HD Digital Image Processing & Delivery 42 RAS & City Review of Final Data (Prior to Lucity Load)24 Lucity Distress Data Import & Load 30 Lucity Analysis Configuration, Review Budgetary Modeling, & Multi-Year Plan 30 Final Report & Condition Summary 30 Professional Services/GIS Database Work Field Work Extraction/Evaluation Work QA/QC Work Final Deliverable 651234 Months Pricing Town of Fountain Hills Pavement Condition and Evaluation Related Services 28 Proprietary Information Pricing Proposal RAS team members have managed/provided field data collection, performed QA/QC, and developed pavement management plans on numerous similar projects to the scope of services requested by the Town. RAS is a financially secure limited liability company that practices strong internal controls, conservative business practices, and a commitment to continued financial growth. RAS is registered to do business in Arizona by the Arizona Corporation Commission (#23412705). The RAS fee structure for this assignment can be found below with itemized tasks to illustrate the full scope of this project. The RAC vehicle will survey the arterial and collector roadways in two directions while single pass testing the residential roadways to maintain the inspection sample philosophy adopted on legacy surveys. The resulting survey mileage is approximately 203 survey miles. Appendix Zac Thomason, MBA PROJECT MANAGER, SENIOR VICE PRESIDENT Mr. Thomason brings over 16 years of dedicated pavement and asset management experience where his focus has been on the use of semi-automated and automated technologies for pavement distress surveys, enterprise software implementation, pavement preservation, budget modeling & forecasting, and multi-year rehabilitation plan development. In addition to pavements, Mr. Thomason has vast experience with Right of Way asset inventory development that ranges from roadside features such as signs & supports, sidewalks, pedestrian curb ramps, striping & markings, curb & gutter, guardrail, bike racks, and nearly any asset that can be seen in the right of way. He has also managed complex sidewalk and pedestrian curb ramp inventory assignments that have included off road vehicle data collection, advanced LiDAR surveys to acquire geometric measurements (ramp, landing, & flare), long-range project prioritization sequencing, and project planning. Municipal Leadership Experience in Arizona & the Southwest: Fountain Hills, Yuma, Casa Grande, Marana, Pinal County, Glendale, Goodyear, Scottsdale, Gilbert, Prescott, Coconino County, & Bullhead City, AZ; Albuquerque, Roswell, Las Cruces, Los Alamos County, & Dona Ana County, NM; Long Beach, Pasadena, Fontana, Orange County, Imperial County, Carlsbad, La Mesa, Lancaster, San Luis Obispo, Coachella Valley Association of Governments (CVAG), & Modesto, CA. *projects in red represent Lucity users LUCITY PROJECT LEADERSHIP ROLES IN ARIZONA Town of Fountain Hills, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for a networkwide pavement data collection and analysis update for the Town of Fountain Hills. Semi-automated data collection equipment was utilized to survey over 160 centerline miles of Town maintained arterial, collector, and residential roadways, resulting in over 200 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. While the Lucity software was not installed on Town servers, the license was hosted by the consultant and the Lucity analysis parameters were configured to match the Town’s existing business practices. Maintenance and rehabilitation activities were updated for the pre-incorporation and post-incorporation roadways, deterioration curves were updated, and budget models were run within Lucity to develop a 10-year condition and budget forecast. The results of the analysis were bound into a final report and presented to Town Council in multiple formats to assist in budget discussions, level of service identification, and long range transportation planning. FIRM Roadway Asset Services EXPERIENCE 16 years EDUCATION M.B.A., Business Administration, University of Phoenix, 2007 B.S., Global Business, Arizona State University, 2005 LOCATION Chandler, Arizona Zac Thomason, MBA- Project Manager City of Prescott, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for a networkwide pavement data collection and analysis update for the City of Prescott. Semi-automated data collection equipment was utilized to survey over 293 centerline miles of City maintained arterial, collector, and residential roadways, resulting in over 360 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” with the pavement management models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. Supersegments were then linked to form a cohesive neighborhood based approach. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. Pinal County, Arizona – Pavement Condition Survey, ROW Assets, & Analysis Mr. Thomason has served as the Assistant Project Manager and Project Manager for multiple networkwide pavement data collection and analysis updates for Pinal County. Semi-automated data collection equipment was utilized to survey over 1,386 centerline miles of County maintained arterial, collector, and residential roadways, resulting in over 1,700 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. During the last data collection project, the Lucity operating parameters were fully updated to ensure the County was taking advantage of the recent updates within the Lucity software. Budgetary models were run within the system to identify the steady state PCI and backlog requirements. Right of way asset inventories were also captured as a part of the project, loaded to the appropriate Lucity module, and delivered as a Personal Geodatabase with representative symbology. City of Paradise Valley, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for multiple networkwide pavement data collection and analysis updates for the City of Paradise Valley. Semi-automated data collection equipment was utilized to assess over 190 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” on a Maintenance District by Maintenance District basis within the models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. BART WILLIAMSON, FCLS PROJECT PRINCIPAL Mr. Williamson brings over 30 years of management experience in a wide variety of projects and programs that include public works, insurance, and transportation on a national level. He has developed an in-depth understanding of business processes and politics that are germane to governments. Mr. Williamson has assisted with asset management needs assessments, management of pavement condition survey, and ROW collection projects. KEY PROJECTS Arizona Department of Transportation- Geospatial Roadway Data Collection Mr. Williamson is serving as Project Principal for the Arizona Department of Transportation’s pavement condition survey of 5,000 test miles. Automated data collection vehicles are utilized to provide pavement data and imagery in accordance with the HPMS guidelines for statewide data collection. Mr. Williamson coordinates project needs and establishes channels of communication that works with the Department staff. Arizona Department of Transportation-City of Maricopa- Road Sign Data Collection Mr. Williamson was the Project Principal for conducting a road sign inventory and an FHWA approved visual nighttime retroreflectivity inspection of all road signs located within the LPA jurisdictional boundaries. Data collection occurred on the City’s 446 miles of roadways using automated data collection vehicles. The traffic sign inventory data was imported into VUEWorks to track the sign inventory and prioritize asset replacement. City of Grand Junction, Colorado – Street Assessment Project Mr. Williamson is serving as the Project Principal for the City’s pavement condition survey of 500 test miles. Roadway Asset Collection (RAC) vehicles were utilized to capture pavement distress imagery for the calculation of PCI values. Following data collection and PCI calculation, RAS will deliver a final Lucity import database file. In addition, RAS is working with the City to set constraints within Lucity for performing internal budget scenarios. City of Albuquerque, New Mexico – Pavement Condition Survey Mr. Williamson served as the Project Principal for the City’s Pavement Condition Assessment of 4,548 lane miles. RAC vehicles were utilized, in accordance with the ASTM D6433, to provide the City with a PCI value for each street segment and the overall network. The project also included an extensive ROW asset inventory that included: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Mr. Williamson was responsible for maintaining communication among the RAS team and the City staff. In addition, Mr. Williamson coordinated project needs and met with the City to understand project goals. FIRM Roadway Asset Services EXPERIENCE 30 years EDUCATION B.S., Business Marketing Honors and Distinction Indiana University, 1989 Bart Williamson, FCLS – Project Principal City of Salt Lake City, Utah – Pavement Condition Assessment Mr. Williamson was the Project Principal for Salt Lake City’s pavement condition assessment of 592 centerline miles of roadways. The project also included GIS based mapping, geodatabase design, import into Cartegraph OMS, and long term pavement preservation plans utilizing historic and current analysis. RAS performed budget analysis and maintenance optimization scenarios for the City’s pavement network. City of Austin, Texas– Pavement Data Collection (2022) and Traffic Sign Data Collection (2021) Mr. Williamson served as the Project Principal for the City of Austin’s 2021 Traffic Sign Data Collection. The network (33,638 street segments and 5,000 test miles) was collected utilizing mobile LiDAR imaging to provide the City with data and imagery on sign faces, sign structures, sign location, and sign assets. Mr. Williamson is currently serving as the Project Principal for the City’s 2022 Pavement Data Collection. This project consists of providing distress data for the City’s 5,000 test mile road network. Following collection, RAS will provide the City with a Video Logger for staff to visually display the inventory elements and results of the survey. City of Denver, Colorado – Pavement Condition Assessment Mr. Williamson is serving as the Project Principal for the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. City of San Antonio, Texas – Pavement Condition Index Modeling Update Mr. Williamson served as the Client Services Manager for the City’s analysis on PCI rate deterioration between pavement evaluation results inputted into Cartegraph in 2019 and 2022. The project consisted of providing deterioration models, recommending improvements for overall maintenance, and calculating average PCI per year per District. RAS developed a multitude of budget scenarios within Cartegraph based on the cost of treatment and predicted improvements to corresponding road sections. City of Corpus Christi, Texas - Pavement Data Collection and Integration Mr. Williamson served as the Project Principal for the City’s pavement condition data and ROW asset inventory for the 2,448 miles of roadways. RAC vehicles were utilized to assess pavement distress, curb and gutter, pavement markings and striping, traffic signs, sidewalks, and ADA ramps. Following collection, PCI values were integrated into Cartegraph. City of Rancho Palos Verdes, California – Roadway Asset Management Program Mr. Williamson served as the Project Principal for the City of Rancho Palos Verdes’ mobile data collection project for its 150 centerline mile network. The project consisted of utilizing RAC vehicles to provide a ROW asset inventory. The ROW Asset inventory included the following assets: curb and gutter, curb ramps, concrete medians, and guardrails. Mark Kramer, PE, MBA ASSISTANT PROJECT MANAGER, CHIEF DATA OFFICER Mr. Kramer serves as the Chief Data Officer at Roadway Asset Services. Mr. Kramer has 24 years of experience in engineering and information technology projects including pavement condition, sign inventory, and sidewalk condition surveys. He is an expert in commercial off the shelf software, data management, data analysis, and delivery of technology projects. Mr. Kramer’s expertise also extends to 3rd party pavement management system implementations as he previously worked for Lucity as a software implementer and spent over 10 years serving the Town of Gilbert as their Director of IT. As a part of those responsibilities, Mr. Kramer and his team managed the Town’s enterprise Lucity license and GIS synchronization. PAVEMENT AND ASSET PROJECT EXPERIENCE Town of Fountain Hills, AZ – Pavement Condition Survey Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis update for the Town of Fountain Hills. Semi-automated data collection equipment was utilized to survey over 160 centerline miles of Town maintained arterial, collector, and residential roadways, resulting in over 200 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. While the Lucity software was not installed on Town servers, the license was hosted by the consultant and the Lucity analysis parameters were configured to match the Town’s existing business practices. Maintenance and rehabilitation activities were updated for the pre-incorporation and post- incorporation roadways, deterioration curves were updated, and budget models were run within Lucity to develop a 10-year condition and budget forecast. The results of the analysis were bound into a final report and presented to Town Council in multiple formats to assist in budget discussions, level of service identification, and long range transportation planning. City of Prescott, Arizona – Pavement Condition Survey & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis update for the City of Prescott. Semi-automated data collection equipment was utilized to assess over 360 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network FIRM Roadway Asset Services EXPERIENCE 24 years EDUCATION MBA-IT Western International,2003 B.S., Civil Engineering, Arizona State University, 1998 LOCATION Mesa, Arizona REGISTRATIONS -AZ Professional Engineer, Certificate Number: 40225 Professional Certifications Microsoft SQL Server Microsoft Power BI Mark Kramer, PE, MBA-IT – Assistant Project Manager level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” with the pavement management models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. Supersegments were then linked to form a cohesive neighborhood based approach. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. Pinal County, Arizona – Pavement Condition Survey, ROW Assets, & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis updates for Pinal County. Semi-automated data collection equipment was utilized to assess over 1,700 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. During the last data collection project, the Lucity operating parameters were fully updated to ensure the County was taking advantage of the recent updates within the Lucity software. Budgetary models were run within the system to identify the steady state PCI and backlog requirements. Right of way asset inventories were also captured as a part of the project, loaded to the appropriate Lucity module, and delivered as a Personal Geodatabase with representative symbology. City of Paradise Valley, Arizona – Pavement Condition Survey & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis updates for the City of Paradise Valley. Semi-automated data collection equipment was utilized to survey over 148 centerline miles of City maintained arterial, collector, and residential roadways, resulting in approximately 190 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” on a Maintenance District by Maintenance District basis within the models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget. City of Yuma, Arizona – Pavement Condition Survey and Analysis Mr. Kramer served as the Engineering Manager for this assignment to conduct a semi- automated data collection effort of over 400 centerline miles of roadways. The City migrated from the Cartegraph software to Lucity and conducted it’s first full linear automated approach during this project. The condition data was processed into a modified ASTM D6433 PCI score and loaded to a Lucity test environment. The City’s robust preservation program was programmed into the Lucity model to assist in extending roadway design life and maximizing the City’s limited funds. The results were aggregated to the network level such that the results of the network as a whole could be documented. G. SCOT GORDON, PE, IAM SENIOR PAVEMENT ENGINEER Mr. Gordon serves as President and Lead Pavement Engineer at Roadway Asset Services. Mr. Gordon has 30 years of experience in transportation engineering, geotechnical engineering, and construction materials testing for transportation networks. As a professional engineer, he has managed numerous projects such as design/build highway projects, airfield pavement, and other government projects. He is an expert in the design, evaluation, monitoring, and research of pavement as well as pavement rehabilitation and soil stabilization. Scot has completed numerous projects related to pavement management system implementation, pavement condition surveys, sign management surveys, and sidewalk condition surveys. The following is a brief list of projects he has managed. KEY PROJECTS City of Grand Junction, Colorado – Street Assessment Project Mr. Gordon is serving as the Project Manager/Pavement Engineer for the City’s pavement condition survey for 500 test miles of paved roads. RAC vehicles are utilized to collect imagery for arterial, collector, striped local roads, and residential roadways in accordance with the ASTM D6433 methodology. PCI data is conducted on each street segment which is typically blocked and tagged with a Facility- ID on the feature class layer in GIS. Following PCI and IRI survey results, data will be integrated into Lucity. Mr. Gordon will work with City staff to develop budgetary scenarios that reflect treatment goals. Arizona DOT- Geospatial Roadway Data Collection Mr. Gordon is serving as Senior Pavement Engineer for the Arizona Department of Transportation’s pavement condition survey of 5,000 test miles. Automated data collection vehicles are utilized to provide pavement data and imagery in accordance with the HPMS guidelines for the Statewide data collection. City of Durham, North Carolina-Pavement Condition Survey Mr. Gordon served as the Senior Pavement Engineer for the automated pavement condition survey of the City’s 700 mile pavement network. The project included data collection per the ASTM D6433, pavement condition rating/assessment, budget analysis, and maintenance repair recommendations and reports. Mr. Gordon worked with the City on the interpretation of PCI results and presented the findings to the City Council for budget planning. FIRM Roadway Asset Services EXPERIENCE 30 years EDUCATION M.E., Civil Engineering, Texas A&M University, 1990 B.S., Civil Engineering, Texas A&M University, 1989 REGISTRATIONS -TX Professional Engineer, Certificate Number:88099 -CO Professional Engineer, Certificate Number:30239 -MD Professional Engineer, Certificate Number:33493 -FL Professional Engineer, Certificate Number:83979 -NC Professional Engineer, Certificate Number:46459 -NM Professional Engineer, Certificate Number:26330 -GA Professional Engineer, Certificate Number:45916 -Institute of Asset Management Certified G. Scot Gordon, PE, IAM – Senior Pavement Engineer City of Salt Lake City, Utah – Pavement Condition Assessment Mr. Gordon was the Project Manager/Senior Pavement Engineer for Salt Lake City’s pavement condition survey on approximately 592 centerline miles of roadways. The project included the calculation of PCI values, GIS based mapping, geodatabase design, Cartegraph importation, and long term pavement preservation plans that examine historic and current analysis. Mr. Gordon worked with the City the develop a multitude of budgetary scenarios based on maintenance strategies and recommendations. City of New Braunfels, Texas – Pavement Data Collection and ROW Inventory Mr. Gordon served as the Senior Pavement Engineer for the City’s pavement condition data collection of 469 test miles of roadways. Pavement data was collected utilizing an RAC vehicle that captures images for all pavement and ROW assets. Following collection, PCI survey results were analyzed utilizing RAS’ Road TRIP (Technical Rating Intelligence Program) to identify distresses including alligator cracking, longitudinal cracking, raveling, and patching. Mr. Gordon conducted a field pilot validation study at project initiation to preliminarily review condition data before collecting the entire network. In addition, Mr. Gordon assisted the City in the interpretation of PCI values and repair recommendations. Denver, Colorado - Pavement Condition Survey Mr. Gordon is serving as the Senior Pavement Engineer for the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. Mr. Gordon hosts monthly meetings with City Staff and RAS Team Members to update project resources, discuss current goals, and maintain communication throughout project fulfillment. Albuquerque, New Mexico - Pavement Condition Survey and ROW Asset Inventory Mr. Gordon served as the Senior Pavement Engineer for the City’s pavement condition survey for its 4,548 lane mile network of roadways and alleys. RAC Vehicles collected imagery for the following ROW assets: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Asset extraction was integrated into the City’s VUEWorks asset management system. Mesa County, Colorado - Pavement Data Collection Mr. Gordon served as the Senior Pavement Engineer for the County’s pavement condition survey of 698 centerline miles of paved roads. Mr. Gordon was responsible for assuring data collection by the RAC vehicles developed unique identifiers for each road segment so the County can maintain a persistent link to GIS data. Mr. Gordon selected pavement treatments based on PCI ratings and identified distress types. Survey results were incorporated into the County’s pavement management system, Cartegraph. RAFAEL RIVERA DATA COLLECTION MANAGER Mr. Rivera has over 12 years of experience in automated data collection of pavement and ROW asset inventories. Mr. Rivera has been involved with collection and management of over 100,000 miles of roadways. Mr. Rivera’s positions have included automated data collection vehicle operator, pavement analyst, LiDAR analyst, and GIS analyst. KEY PROJECTS City of Salt Lake City, Utah– Pavement Condition Assessment Mr. Rivera was the Data Collection Manager for the City’s automated pavement surface inventory and distress survey on approximately 592 centerline miles. Final deliverables consisted of PCI values, GIS based mapping, geodatabase design, import into Cartegraph, data and budget analysis, maintenance optimization, and pavement preservation plans with an examination of historic and current analysis. Mr. Rivera provided route tracking for field operation crew and ensured 100% of the network was collected. Arizona Department of Transportation- City of Buckeye- Sign Data Collection Mr. Rivera was the Data Collection Manager for the collection of a road sign inventory and visual nighttime retroreflectivity inspection of all road signs located within the LPA jurisdictional boundaries. The daytime inventory and condition assessment of the City’s 1,850 test miles of roadway was collected via automated data collection vehicles. The retroreflectivity assessment was conducted using an FHWA approved nighttime visual assessment methodology. City of Denver, Colorado – Pavement Condition Assessment Mr. Rivera is serving as the Data Collection Manager for the automated data collection project of the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. The ROW assets are being imported into Cartegraph. City of Rancho Palos Verdes, California – Roadway Asset Management Program Mr. Rivera served as the Data Collection Manager for the City of Rancho Palos Verdes’ mobile data collection project for its 150 centerline mile network. The project consisted of utilizing RAC vehicles to provide a ROW asset inventory. The ROW Asset inventory included the following assets: curb and gutter, curb ramps, concrete medians, and guardrails. FIRM Roadway Asset Services 2 years EXPERIENCE 12 years EDUCATION B.S., Mechanical Engineering, University of Central Florida, 2011 B.S., Aerospace Engineering, University of Central Florida, 2016 Sandra Marrero, E.I. PROJECT ENGINEER Ms. Marrero works on the firm’s roadway asset collection projects with a pavement analysis component. Sandra has over eight years of experience evaluating pavement conditions, processing pavement ratings, preparing reports, performing maintenance budget scenarios, reporting the results of project finding in meetings, and discussing with the Client. Her software experience includes Lucity, Cartegraph, Streetlogix, PAVER, VUEWorks, EarthShaper, ArcGIS, AutoCAD, Civil 3D, and the Microsoft Office suite. KEY PROJECTS Pennington County- Pavement Condition Assessment Mrs. Marrero is serving as a Project Engineer for the County’s pavement condition survey for 684 survey miles. Automated collection vehicles will be utilized to collect pavement distress information that follows the ASTM D6433 methodology. Following collection, the County will be provided the RAS Videologger that enables County Staff to visually view information collected from the survey. Central Texas Regional Mobility Authority – Pavement Condition Assessment Mrs. Marrero is serving as a Project Engineer for the automated data collection of CTRMA’s 286 test miles. RAS is utilizing an RAC van to collect imagery on pavement distresses and IRI. RAS is also completing skid testing for CTRMA. Following collection, RAS will utilize the TxDOT Pavement Management Information System to determine distress and pavement condition scores. City of Albuquerque, New Mexico – Pavement Condition Survey Ms. Marrero served as a Project Engineer for the mobile image data collection project of the City’s 4,548 lane mile network. RAC vehicles were utilized, in accordance with the ASTM D6433, to provide the City with a PCI value for each street segment and the overall PCI value for the network. The project also included an extensive ROW asset inventory that included: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Ms. Marrero assisted with data integration in the City’s pavement management software, VUEWorks. City of Rowlett, Texas - Pavement Condition Assessment and ROW Asset Inventory Mrs. Marrero served as a Project Engineer for the City’s automated data collection project for 327 test miles of pavement and 107 miles of alleys. Additionally, RAS is completing an extensive ROW asset inventory for the following assets: traffic signs, pavement markings, pavement striping, sidewalks, and ADA ramps. The pavement data is being imported into the City’s PAVER database as well as VUEWorks, the City’s asset management system. Ms. Marrero assisted with the development and delivery of the final report. FIRM Roadway Asset Services 1 year EXPERIENCE 8 years EDUCATION B.S., Civil Engineering, University of Puerto Rico, 2013 REGISTRATIONS -FL Engineer Intern, Certificate Number:1100023293 Experience and Qualifications of the Vendor Town of Fountain Hills Pavement Condition and Evaluation Related Services 4 Proprietary Information 7.2.2 Experience and Qualifications of the Vendor The RAS executive team is comprised of established industry veterans who have dedicated their careers to the field of pavement and asset management. RAS team members have performed over 200 pavement and asset management projects in the last 5 years in accordance with ASTM D6433 and AASHTO R 57. RAS offers the Town the most experienced data collection team to provide assurance that the collection and processing of data will be delivered on schedule. We have an outstanding record of completing projects of similar size and scale, on time and within budget. The RAS team advantage to the Town of Fountain Hills is as follows:  Municipal Experience – Unlike many other proposing firms, RAS exclusively performs Pavement Condition Assessments for municipalities of varying sizes. RAS has completed or is currently completing pavement condition assessments for Arizona Department of Transportation (ADOT); Denver, CO; Salt Lake City, UT; Albuquerque, NM; Grand Junction, CO; New Braunfels, TX; Charlotte, NC; Austin, TX; and Memphis, TN.  Advanced Laser Technology – RAS uses the most advanced 3D surface imaging technology available in the marketplace. The Laser Crack Measurement System (LCMS-2) technology and 360 Degree Camera for ROW Assets (Ladybug panoramic imagery) represent the most sophisticated hardware available for objective and repeatable condition assessments. The combination of technology/software will be utilized for the pavement condition assessment and the collection of street segment attributes.  Innovative Repair Analysis Scenario & Optimization – Project Manager, Zac Thomason, is familiar with the Town’s requirements for multi-year planning and repair recommendations as he managed the Town’s previous pavement condition project. An innovation that Mr. Thomason and Mr. Kramer would like to reimplement in the Town’s version of Lucity is the distinction between the pre- incorporation and post-incorporation roadways. The pre-incorporation roadways have a unique design and cross section that should be modeled with their own deterioration curves and more importantly, their own set of rehabilitation activity unit rates.  Field Pilot – One unique feature provided by the RAS team is the dedication to quality, which is initiated through a field pilot study at the beginning of the project. During the field pilot study, RAS’ Project Manager, Zac Thomason, MBA, and Senior Pavement Engineer, Scot Gordon, PE, IAM, will review site conditions on Town of Fountain Hills Pavement Condition and Evaluation Related Services 5 Proprietary Information select roadways (approximately 10-miles of roadway) with Town Staff for acceptance before the network wide pavement analysis is completed. Further information on the RAS field pilot can be found on page 15 of this submission. In addition, the Town of Fountain Hills roadways often suffer from oxidative damage before load associated challenges arise. Therefore, it is imperative that the configuration of Lucity mimics the Town’s adopted preservation strategy and surface treatment program of applying Slurry seals in the appropriate sequence. However, the system should also be flexible enough to accommodate for newly innovative preservation activities that the Town may not yet be harnessing. Lastly, Mr. Thomason and Mr. Kramer fully integrate the power of financial optimization through the Lucity system’s ability to identify Critical Roadways (those getting ready to drop into next rehab activity) and sequence them by their cost of deferral. Optimization is described in more detail on page 22 of this submission. Experience in Providing Services to Municipalities Unlike many other proposing firms, RAS is solely dedicated to providing pavement and asset management services to agencies throughout the Country. Throughout the last 2 years, RAS has worked with various municipalities and departments to improve the overall street networks. Below, is a sample list of completed and active projects and their associated scope of work. Test Miles In t e r n a t i o n a l R o u g h n e s s I n d e x ( I R I ) Pa v e m e n t E v a l u a t i o n Pa v e m e n t C o n d i t i o n I n d e x GI S S e g m e n t a t i o n RO W A s s e t I n v e n t o r y Pi l o t P r o g r a m a n d F i e l d Q A / Q C De t e r i o r a t i o n C u r v e s a n d M o d e l i n g AM S I n t e g r a t i o n Sy s t e m T r a i n i n g Pavement Condition and ROW Asset Survey 5,150 Charlotte, NC X X X X X X X Pavement Data Collection 5,000 Arizona DOT X X X X Pavement Condition and ROW Asset Survey 4,548 Albuquerque, NM X X X X X X X X X Pavement Data Collection 3,750 Austin, TX X X X X X X Traffic Sign Data Collection 3,750 Austin, TX X X X X Pavement Data Assessment 3,086 Denver, CO X X X X X X X X X Pavement Condition Survey 3,048 Memphis, TN X X X X X X X X Pavement Evaluation and ROW Asset Services 1,594 Corpus Christi, TX X X X X X X X X X Pavement Condition Assessment 1,500 Sarasota County, FL X X X X X X X X Pavement Condition Survey and ROW Asset Inventory 1,023 Durham, NC X X X X X X X X X Pavement Condition Survey 730 Salt Lake City, UT X X X X X X X X Pavement Condition Survey 654 Pueblo, CO X X X X X X X X Pavement Data Survey and ROW Asset Inventory 618 Denton, TX X X X X X X X X X Pavement Condition and Inventory Survey 608 Greenville, SC X X X X X X X X X Pavement Condition Survey 473 Kingsport, TN X X X X X X X X Pavement Condition Survey and ROW Asset Inventory 460 New Braunfels, TX X X X X X X X X X Pavement Data Collection 286 CTRMA X X X X X X X Professional Asset Management Services N/A San Antonio, TX X X X Pavement Condition Survey Project Client Name Town of Fountain Hills Pavement Condition and Evaluation Related Services 6 Sample Projects and References City of Salt Lake City, Utah – Pavement Condition Survey RAS performed a pavement condition survey for Salt Lake City’s 730 test mile network. RAS provided GIS based deliverables and formatted data for an import into Cartegraph. RAS assisted City staff in presenting data to City Council regarding various funding amounts and strategies for improving the City’s PCI and its level of service. Prior to data collection, Mr. Rivera worked with the City’s GIS staff to identify the appropriate mileage for collection and review of the GIS segmentation provided in the City’s database. Appropriate segmentation was laid out based on a crossroad- to-crossroad section divider. A 10-mile pilot was conducted for early collection to validate the accuracy of the assessment deliverables. The evaluation project also included a technical report presenting the predominant distresses, statistical analysis of the condition results, and repair recommendations. The report provided results based upon surface type and division of functional classification. The results presented in the database and report were used to develop a cost-effective approach to maintenance, improving the City’s preservation techniques, and optimizing budgetary expenditures. RAS collaborated with the City during this project to review and compare the City’s historical condition data from 2017 with the data collected in the current evaluation. The purpose of this exercise was to update the existing pavement deterioration curves within the Cartegraph system. The City uses Cartegraph OMS as their pavement management system to manage pavement condition data, track maintenance activities, develop models for prediction of future performance, produce budget scenarios, and evaluate future funding requirements. Time Period of Project September 2021- June 2022 Project Budget $202,975 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Deterioration Curves -Cartegraph -Video Logger Client Name and Contact David Jones, Program Manager City of Salt Lake City 2001 S State Street N3-600 Salt Lake City, UT 84190 801-535-6425 David.jones@slcgov.com RAS Role RAS served as the Prime Contractor RAS Team Members Scot Gordon, Project Engineer Zac Thomason, Assistant Project Manager Bart Williamson, Project Principal Mark Kramer, QA/QC Manager Rafael Rivera, Data Collection Manager Town of Fountain Hills Pavement Condition and Evaluation Related Services 7 Albuquerque, NM – Pavement Condition Survey & ROW Asset Inventory RAS completed a pavement condition survey for the City’s 4,548 lane mile network of roadways and alleys. In accordance with ASTM D6433, RAS completed the survey using its fleet of RAC vehicles. The RAC vehicle drove all roads in both directions to provide the most expansive collection for the City. Additionally, RAS completed an extensive ROW inventory and condition assessment of the following assets for the City: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Imagery for pavement evaluation and asset extraction was captured with the RAC automated data collection vehicle. The RAC vehicle is equipped with a second-generation Laser Crack Measurement System (LCMS-2) for automated pavement data acquisition, Ladybug 360 camera system for capturing right-of-way imagery, and a laser profiler that includes two-line lasers for capturing roughness and ride data. The project provided efficient and cost-effective data extraction in a GIS environment that was seamlessly integrated into the City’s VUEWorks asset management software system. For the traffic sign inventory, RAS extracted nearly 90,000 signs and provided the City with the following attributes: Asset ID, X,Y location, MUTCD code, sign text, photo image link, physical condition rating (good, fair, poor), location, post total, sign facing direction, travel direction, obstructions, legend color, back color, hump case, support structure type, and comments. Time Period of Project March 2021- July 2022 Completion Completed on time and within budget Project Budget $2,841,146 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Review Soil Conditions -PMS -Video Logger -ROW -Deterioration Curves Client Name and Contact Doug Rizor, Systems Programmer City of Albuquerque 1 Civic Plz NW #7057 Albuquerque, NM 87102 505-366-4020 rizor.d.abq@gmail.com RAS Role RAS served as the Prime Contractor RAS Team Members Scot Gordon, Project Manager Zac Thomason, Assistant Project Manager Bart Williamson, Project Principal Rafael Rivera, Data Manager Mark Kramer-QA/QC Manager Town of Fountain Hills Pavement Condition and Evaluation Related Services 8 Durham, North Carolina – Pavement Condition Survey RAS performed a pavement condition survey for the City of Durham’s 1,540 lane mile network. The project consisted of a PCI Survey and ROW asset inventory covering traffic signs, curb and gutter, and crosswalk slopes. Data collection for the pavement condition survey was completed with RAC vehicles, in accordance with the ASTM D6433. The RAC vehicle is equipped with an inertial profiler for Roughness and Ride measurements, a second-generation Pavemetrics Laser Crack Measurement System for pavement imagery, Point Gray Ladybug 5+ 30 MP 360 camera for asset capture, and an Applanix POS/LV for capturing GPS coordinates. Following collection, data was imported into PAVER. 36,416 traffic signs were inventoried and assessed with the following attributes for each sign including: X,Y location, street name asset is located on, Asset ID, Facility ID, photo image link, MUTCD code, physical condition rating (good, fair, poor), and support type. RAS also assessed curb and gutters for 1,075 lane miles and provided the following attributes: Asset ID, Facility ID, photo image link, physical condition rating (good, fair, poor), painted color, and material type. Lastly, RAS inventoried 1,229 crosswalks. As the Project Manager, Mr. Gordon met with the engineering staff to refine budget requirements and develop a 10-year maintenance plan to improve the efficiency of treatments and decrease the necessity for additional funds. After presenting results to the engineering staff, Mr. Gordon met with the City Council during budget planning meetings to present the findings and the recommended maintenance plan. Time Period of Project July 2021- December 2021 Completion Completed on time and within budget Project Budget $374,712 2021 Responsibilities -Pavement Evaluation -PCI -IRI Measurement -GIS -Review Soil Conditions -ROW -Deterioration Curves Client Name and Contact Clint Blackburn, Project Manager City of Durham 101 City Hall Plaza, Ste. 3100 Durham, NC 27701 704-301-7193 clint.blackburn@durhamnc.gov RAS Role Key Members worked at RAS RAS Team Members Scot Gordon, Project Manager Bart Williamson, Assistant Project Manager Rafael Rivera, Data Collection Manager Sandra Marrero, Pavement Engineer Mark Kramer, QA/QC Manager Key Positions Town of Fountain Hills Pavement Condition and Evaluation Related Services 9 7.2.3 Key Positions - Roles and Responsibilities Organizational structure is important to understand as it can often shed light on whom a municipal agency will really be working with on any given assignment. While the Town can select any qualified data collector as a short-term vendor, RAS prefers to develop long term consultative relationships with our clients that result in turn-key pavement management implementations that exceed client expectations. The key personnel assigned to this project are all long-time veterans of the industry and have extensive experience in pavement distress field rating, Pavement Condition Index (PCI) processing, multi-year prioritization, Lucity configurations, and custom database integrations. The RAS team is composed of industry experts that provide Best-in Class pavement management programs. The RAS team uses previously established roles to ensure seamless transition of project ownership. Role assignments are as presented below:  Project Manager: Zac Thomason, MBA, has over 16 years of experience in pavement management, ASTM D6433 automated data collection, financial optimization, and complete Lucity integration. Mr. Thomason has managed the previous pavement condition project for the Town and provided ad-hoc and on-call services for the Town as it relates to multi-year planning, repair recommendations, budget optimization, and Town Council Meetings. Mr. Thomason will deliver final reports and establish channels of communication between the Town’s Staff and Town of Fountain Hills Pavement Condition and Evaluation Related Services 10 the RAS Team. Mr. Thomason will also provide analysis scenarios and Lucity training for the Town’s Staff. Lastly, due to his local presence, Mr. Thomason will attend Town meetings in person and be onsite during the field pilot review with Senior Pavement Engineer, Scot Gordon.  Assistant Project Manager: Mark Kramer, PE, MBA, has 24 years of experience in automated data processing routines, commercial off-the-shelf software, data management, pavement analysis, and data integration. Mr. Kramer worked with the Town during the previous pavement condition survey to load the inspection data to Lucity, configure the operating parameters of the analysis, and run the Lucity budgetary modeling. Mr. Kramer will provide QA/QC checks of data to ensure that automated interpretations of distresses match what is visually represented. As an optional service, Mr. Kramer could also provide onsite Lucity training if this is not supplied by CentralSquare representatives.  Project Principal: Bart Williamson has over 30 years of project insurance and management experience and has worked in the transportation industry for over 16 years. Mr. Williamson will coordinate project needs and resources to ensure high- quality deliverables are received in a timely manner.  Senior Pavement Engineer: Scot Gordon, PE, IAM, has over 30 years of licensed Professional Engineering experience in pavement engineering, design, and transportation planning. Mr. Gordon will review distress interpretations and provide expertise in pavement management optimization. Mr. Gordon will perform a 10-mile field pilot study to make necessary corrections to processing routines and review quality assurance measures with the Town’s Staff.  Data Collection Manager: Rafael Rivera has 12 years of experience in automated pavement and ROW data collection field efforts. Mr. Rivera is responsible for updating schedules based on collection status, overseeing the daily operation crew, and initiating/reviewing the evaluation process for pavement and ROW assets.  Project Engineer: Sandra Marrero, EI has 8 years of experience evaluating pavement conditions, processing pavement ratings, preparing reports, and performing maintenance budget scenarios. Ms. Marrero will assist in the development of a final report. Appendix Zac Thomason, MBA PROJECT MANAGER, SENIOR VICE PRESIDENT Mr. Thomason brings over 16 years of dedicated pavement and asset management experience where his focus has been on the use of semi-automated and automated technologies for pavement distress surveys, enterprise software implementation, pavement preservation, budget modeling & forecasting, and multi-year rehabilitation plan development. In addition to pavements, Mr. Thomason has vast experience with Right of Way asset inventory development that ranges from roadside features such as signs & supports, sidewalks, pedestrian curb ramps, striping & markings, curb & gutter, guardrail, bike racks, and nearly any asset that can be seen in the right of way. He has also managed complex sidewalk and pedestrian curb ramp inventory assignments that have included off road vehicle data collection, advanced LiDAR surveys to acquire geometric measurements (ramp, landing, & flare), long-range project prioritization sequencing, and project planning. Municipal Leadership Experience in Arizona & the Southwest: Fountain Hills, Yuma, Casa Grande, Marana, Pinal County, Glendale, Goodyear, Scottsdale, Gilbert, Prescott, Coconino County, & Bullhead City, AZ; Albuquerque, Roswell, Las Cruces, Los Alamos County, & Dona Ana County, NM; Long Beach, Pasadena, Fontana, Orange County, Imperial County, Carlsbad, La Mesa, Lancaster, San Luis Obispo, Coachella Valley Association of Governments (CVAG), & Modesto, CA. *projects in red represent Lucity users LUCITY PROJECT LEADERSHIP ROLES IN ARIZONA Town of Fountain Hills, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for a networkwide pavement data collection and analysis update for the Town of Fountain Hills. Semi-automated data collection equipment was utilized to survey over 160 centerline miles of Town maintained arterial, collector, and residential roadways, resulting in over 200 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. While the Lucity software was not installed on Town servers, the license was hosted by the consultant and the Lucity analysis parameters were configured to match the Town’s existing business practices. Maintenance and rehabilitation activities were updated for the pre-incorporation and post-incorporation roadways, deterioration curves were updated, and budget models were run within Lucity to develop a 10-year condition and budget forecast. The results of the analysis were bound into a final report and presented to Town Council in multiple formats to assist in budget discussions, level of service identification, and long range transportation planning. FIRM Roadway Asset Services EXPERIENCE 16 years EDUCATION M.B.A., Business Administration, University of Phoenix, 2007 B.S., Global Business, Arizona State University, 2005 LOCATION Chandler, Arizona Zac Thomason, MBA- Project Manager City of Prescott, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for a networkwide pavement data collection and analysis update for the City of Prescott. Semi-automated data collection equipment was utilized to survey over 293 centerline miles of City maintained arterial, collector, and residential roadways, resulting in over 360 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” with the pavement management models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. Supersegments were then linked to form a cohesive neighborhood based approach. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. Pinal County, Arizona – Pavement Condition Survey, ROW Assets, & Analysis Mr. Thomason has served as the Assistant Project Manager and Project Manager for multiple networkwide pavement data collection and analysis updates for Pinal County. Semi-automated data collection equipment was utilized to survey over 1,386 centerline miles of County maintained arterial, collector, and residential roadways, resulting in over 1,700 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. During the last data collection project, the Lucity operating parameters were fully updated to ensure the County was taking advantage of the recent updates within the Lucity software. Budgetary models were run within the system to identify the steady state PCI and backlog requirements. Right of way asset inventories were also captured as a part of the project, loaded to the appropriate Lucity module, and delivered as a Personal Geodatabase with representative symbology. City of Paradise Valley, Arizona – Pavement Condition Survey & Analysis Mr. Thomason served as the Project Manager for multiple networkwide pavement data collection and analysis updates for the City of Paradise Valley. Semi-automated data collection equipment was utilized to assess over 190 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” on a Maintenance District by Maintenance District basis within the models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. BART WILLIAMSON, FCLS PROJECT PRINCIPAL Mr. Williamson brings over 30 years of management experience in a wide variety of projects and programs that include public works, insurance, and transportation on a national level. He has developed an in-depth understanding of business processes and politics that are germane to governments. Mr. Williamson has assisted with asset management needs assessments, management of pavement condition survey, and ROW collection projects. KEY PROJECTS Arizona Department of Transportation- Geospatial Roadway Data Collection Mr. Williamson is serving as Project Principal for the Arizona Department of Transportation’s pavement condition survey of 5,000 test miles. Automated data collection vehicles are utilized to provide pavement data and imagery in accordance with the HPMS guidelines for statewide data collection. Mr. Williamson coordinates project needs and establishes channels of communication that works with the Department staff. Arizona Department of Transportation-City of Maricopa- Road Sign Data Collection Mr. Williamson was the Project Principal for conducting a road sign inventory and an FHWA approved visual nighttime retroreflectivity inspection of all road signs located within the LPA jurisdictional boundaries. Data collection occurred on the City’s 446 miles of roadways using automated data collection vehicles. The traffic sign inventory data was imported into VUEWorks to track the sign inventory and prioritize asset replacement. City of Grand Junction, Colorado – Street Assessment Project Mr. Williamson is serving as the Project Principal for the City’s pavement condition survey of 500 test miles. Roadway Asset Collection (RAC) vehicles were utilized to capture pavement distress imagery for the calculation of PCI values. Following data collection and PCI calculation, RAS will deliver a final Lucity import database file. In addition, RAS is working with the City to set constraints within Lucity for performing internal budget scenarios. City of Albuquerque, New Mexico – Pavement Condition Survey Mr. Williamson served as the Project Principal for the City’s Pavement Condition Assessment of 4,548 lane miles. RAC vehicles were utilized, in accordance with the ASTM D6433, to provide the City with a PCI value for each street segment and the overall network. The project also included an extensive ROW asset inventory that included: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Mr. Williamson was responsible for maintaining communication among the RAS team and the City staff. In addition, Mr. Williamson coordinated project needs and met with the City to understand project goals. FIRM Roadway Asset Services EXPERIENCE 30 years EDUCATION B.S., Business Marketing Honors and Distinction Indiana University, 1989 Bart Williamson, FCLS – Project Principal City of Salt Lake City, Utah – Pavement Condition Assessment Mr. Williamson was the Project Principal for Salt Lake City’s pavement condition assessment of 592 centerline miles of roadways. The project also included GIS based mapping, geodatabase design, import into Cartegraph OMS, and long term pavement preservation plans utilizing historic and current analysis. RAS performed budget analysis and maintenance optimization scenarios for the City’s pavement network. City of Austin, Texas– Pavement Data Collection (2022) and Traffic Sign Data Collection (2021) Mr. Williamson served as the Project Principal for the City of Austin’s 2021 Traffic Sign Data Collection. The network (33,638 street segments and 5,000 test miles) was collected utilizing mobile LiDAR imaging to provide the City with data and imagery on sign faces, sign structures, sign location, and sign assets. Mr. Williamson is currently serving as the Project Principal for the City’s 2022 Pavement Data Collection. This project consists of providing distress data for the City’s 5,000 test mile road network. Following collection, RAS will provide the City with a Video Logger for staff to visually display the inventory elements and results of the survey. City of Denver, Colorado – Pavement Condition Assessment Mr. Williamson is serving as the Project Principal for the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. City of San Antonio, Texas – Pavement Condition Index Modeling Update Mr. Williamson served as the Client Services Manager for the City’s analysis on PCI rate deterioration between pavement evaluation results inputted into Cartegraph in 2019 and 2022. The project consisted of providing deterioration models, recommending improvements for overall maintenance, and calculating average PCI per year per District. RAS developed a multitude of budget scenarios within Cartegraph based on the cost of treatment and predicted improvements to corresponding road sections. City of Corpus Christi, Texas - Pavement Data Collection and Integration Mr. Williamson served as the Project Principal for the City’s pavement condition data and ROW asset inventory for the 2,448 miles of roadways. RAC vehicles were utilized to assess pavement distress, curb and gutter, pavement markings and striping, traffic signs, sidewalks, and ADA ramps. Following collection, PCI values were integrated into Cartegraph. City of Rancho Palos Verdes, California – Roadway Asset Management Program Mr. Williamson served as the Project Principal for the City of Rancho Palos Verdes’ mobile data collection project for its 150 centerline mile network. The project consisted of utilizing RAC vehicles to provide a ROW asset inventory. The ROW Asset inventory included the following assets: curb and gutter, curb ramps, concrete medians, and guardrails. Mark Kramer, PE, MBA ASSISTANT PROJECT MANAGER, CHIEF DATA OFFICER Mr. Kramer serves as the Chief Data Officer at Roadway Asset Services. Mr. Kramer has 24 years of experience in engineering and information technology projects including pavement condition, sign inventory, and sidewalk condition surveys. He is an expert in commercial off the shelf software, data management, data analysis, and delivery of technology projects. Mr. Kramer’s expertise also extends to 3rd party pavement management system implementations as he previously worked for Lucity as a software implementer and spent over 10 years serving the Town of Gilbert as their Director of IT. As a part of those responsibilities, Mr. Kramer and his team managed the Town’s enterprise Lucity license and GIS synchronization. PAVEMENT AND ASSET PROJECT EXPERIENCE Town of Fountain Hills, AZ – Pavement Condition Survey Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis update for the Town of Fountain Hills. Semi-automated data collection equipment was utilized to survey over 160 centerline miles of Town maintained arterial, collector, and residential roadways, resulting in over 200 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. While the Lucity software was not installed on Town servers, the license was hosted by the consultant and the Lucity analysis parameters were configured to match the Town’s existing business practices. Maintenance and rehabilitation activities were updated for the pre-incorporation and post- incorporation roadways, deterioration curves were updated, and budget models were run within Lucity to develop a 10-year condition and budget forecast. The results of the analysis were bound into a final report and presented to Town Council in multiple formats to assist in budget discussions, level of service identification, and long range transportation planning. City of Prescott, Arizona – Pavement Condition Survey & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis update for the City of Prescott. Semi-automated data collection equipment was utilized to assess over 360 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network FIRM Roadway Asset Services EXPERIENCE 24 years EDUCATION MBA-IT Western International,2003 B.S., Civil Engineering, Arizona State University, 1998 LOCATION Mesa, Arizona REGISTRATIONS -AZ Professional Engineer, Certificate Number: 40225 Professional Certifications Microsoft SQL Server Microsoft Power BI Mark Kramer, PE, MBA-IT – Assistant Project Manager level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” with the pavement management models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. Supersegments were then linked to form a cohesive neighborhood based approach. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget on the road network. Pinal County, Arizona – Pavement Condition Survey, ROW Assets, & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis updates for Pinal County. Semi-automated data collection equipment was utilized to assess over 1,700 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. During the last data collection project, the Lucity operating parameters were fully updated to ensure the County was taking advantage of the recent updates within the Lucity software. Budgetary models were run within the system to identify the steady state PCI and backlog requirements. Right of way asset inventories were also captured as a part of the project, loaded to the appropriate Lucity module, and delivered as a Personal Geodatabase with representative symbology. City of Paradise Valley, Arizona – Pavement Condition Survey & Analysis Mr. Kramer served as the Engineering Manager for a networkwide pavement data collection and analysis updates for the City of Paradise Valley. Semi-automated data collection equipment was utilized to survey over 148 centerline miles of City maintained arterial, collector, and residential roadways, resulting in approximately 190 survey miles. All data was collected in conformance with the ASTM D6433 protocols and the extent/severity data was summarized as a 0-10 index for import into the Lucity pavement management software. The Lucity operating parameters were updated as a part of the analysis and multiple budgetary models were run to establish the relationship between the network level PCI and annual funding. In addition, the Supersegments within Lucity were developed and linked to form a true “Neighborhood Approach” on a Maintenance District by Maintenance District basis within the models. Supersegments were developed based upon relative condition, pavement type, and a maximum upset limit. The results of the analysis were presented to City Council such that they understood the current condition of the network, challenges to be overcome, and the impact of the current budget. City of Yuma, Arizona – Pavement Condition Survey and Analysis Mr. Kramer served as the Engineering Manager for this assignment to conduct a semi- automated data collection effort of over 400 centerline miles of roadways. The City migrated from the Cartegraph software to Lucity and conducted it’s first full linear automated approach during this project. The condition data was processed into a modified ASTM D6433 PCI score and loaded to a Lucity test environment. The City’s robust preservation program was programmed into the Lucity model to assist in extending roadway design life and maximizing the City’s limited funds. The results were aggregated to the network level such that the results of the network as a whole could be documented. G. SCOT GORDON, PE, IAM SENIOR PAVEMENT ENGINEER Mr. Gordon serves as President and Lead Pavement Engineer at Roadway Asset Services. Mr. Gordon has 30 years of experience in transportation engineering, geotechnical engineering, and construction materials testing for transportation networks. As a professional engineer, he has managed numerous projects such as design/build highway projects, airfield pavement, and other government projects. He is an expert in the design, evaluation, monitoring, and research of pavement as well as pavement rehabilitation and soil stabilization. Scot has completed numerous projects related to pavement management system implementation, pavement condition surveys, sign management surveys, and sidewalk condition surveys. The following is a brief list of projects he has managed. KEY PROJECTS City of Grand Junction, Colorado – Street Assessment Project Mr. Gordon is serving as the Project Manager/Pavement Engineer for the City’s pavement condition survey for 500 test miles of paved roads. RAC vehicles are utilized to collect imagery for arterial, collector, striped local roads, and residential roadways in accordance with the ASTM D6433 methodology. PCI data is conducted on each street segment which is typically blocked and tagged with a Facility- ID on the feature class layer in GIS. Following PCI and IRI survey results, data will be integrated into Lucity. Mr. Gordon will work with City staff to develop budgetary scenarios that reflect treatment goals. Arizona DOT- Geospatial Roadway Data Collection Mr. Gordon is serving as Senior Pavement Engineer for the Arizona Department of Transportation’s pavement condition survey of 5,000 test miles. Automated data collection vehicles are utilized to provide pavement data and imagery in accordance with the HPMS guidelines for the Statewide data collection. City of Durham, North Carolina-Pavement Condition Survey Mr. Gordon served as the Senior Pavement Engineer for the automated pavement condition survey of the City’s 700 mile pavement network. The project included data collection per the ASTM D6433, pavement condition rating/assessment, budget analysis, and maintenance repair recommendations and reports. Mr. Gordon worked with the City on the interpretation of PCI results and presented the findings to the City Council for budget planning. FIRM Roadway Asset Services EXPERIENCE 30 years EDUCATION M.E., Civil Engineering, Texas A&M University, 1990 B.S., Civil Engineering, Texas A&M University, 1989 REGISTRATIONS -TX Professional Engineer, Certificate Number:88099 -CO Professional Engineer, Certificate Number:30239 -MD Professional Engineer, Certificate Number:33493 -FL Professional Engineer, Certificate Number:83979 -NC Professional Engineer, Certificate Number:46459 -NM Professional Engineer, Certificate Number:26330 -GA Professional Engineer, Certificate Number:45916 -Institute of Asset Management Certified G. Scot Gordon, PE, IAM – Senior Pavement Engineer City of Salt Lake City, Utah – Pavement Condition Assessment Mr. Gordon was the Project Manager/Senior Pavement Engineer for Salt Lake City’s pavement condition survey on approximately 592 centerline miles of roadways. The project included the calculation of PCI values, GIS based mapping, geodatabase design, Cartegraph importation, and long term pavement preservation plans that examine historic and current analysis. Mr. Gordon worked with the City the develop a multitude of budgetary scenarios based on maintenance strategies and recommendations. City of New Braunfels, Texas – Pavement Data Collection and ROW Inventory Mr. Gordon served as the Senior Pavement Engineer for the City’s pavement condition data collection of 469 test miles of roadways. Pavement data was collected utilizing an RAC vehicle that captures images for all pavement and ROW assets. Following collection, PCI survey results were analyzed utilizing RAS’ Road TRIP (Technical Rating Intelligence Program) to identify distresses including alligator cracking, longitudinal cracking, raveling, and patching. Mr. Gordon conducted a field pilot validation study at project initiation to preliminarily review condition data before collecting the entire network. In addition, Mr. Gordon assisted the City in the interpretation of PCI values and repair recommendations. Denver, Colorado - Pavement Condition Survey Mr. Gordon is serving as the Senior Pavement Engineer for the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. Mr. Gordon hosts monthly meetings with City Staff and RAS Team Members to update project resources, discuss current goals, and maintain communication throughout project fulfillment. Albuquerque, New Mexico - Pavement Condition Survey and ROW Asset Inventory Mr. Gordon served as the Senior Pavement Engineer for the City’s pavement condition survey for its 4,548 lane mile network of roadways and alleys. RAC Vehicles collected imagery for the following ROW assets: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Asset extraction was integrated into the City’s VUEWorks asset management system. Mesa County, Colorado - Pavement Data Collection Mr. Gordon served as the Senior Pavement Engineer for the County’s pavement condition survey of 698 centerline miles of paved roads. Mr. Gordon was responsible for assuring data collection by the RAC vehicles developed unique identifiers for each road segment so the County can maintain a persistent link to GIS data. Mr. Gordon selected pavement treatments based on PCI ratings and identified distress types. Survey results were incorporated into the County’s pavement management system, Cartegraph. RAFAEL RIVERA DATA COLLECTION MANAGER Mr. Rivera has over 12 years of experience in automated data collection of pavement and ROW asset inventories. Mr. Rivera has been involved with collection and management of over 100,000 miles of roadways. Mr. Rivera’s positions have included automated data collection vehicle operator, pavement analyst, LiDAR analyst, and GIS analyst. KEY PROJECTS City of Salt Lake City, Utah– Pavement Condition Assessment Mr. Rivera was the Data Collection Manager for the City’s automated pavement surface inventory and distress survey on approximately 592 centerline miles. Final deliverables consisted of PCI values, GIS based mapping, geodatabase design, import into Cartegraph, data and budget analysis, maintenance optimization, and pavement preservation plans with an examination of historic and current analysis. Mr. Rivera provided route tracking for field operation crew and ensured 100% of the network was collected. Arizona Department of Transportation- City of Buckeye- Sign Data Collection Mr. Rivera was the Data Collection Manager for the collection of a road sign inventory and visual nighttime retroreflectivity inspection of all road signs located within the LPA jurisdictional boundaries. The daytime inventory and condition assessment of the City’s 1,850 test miles of roadway was collected via automated data collection vehicles. The retroreflectivity assessment was conducted using an FHWA approved nighttime visual assessment methodology. City of Denver, Colorado – Pavement Condition Assessment Mr. Rivera is serving as the Data Collection Manager for the automated data collection project of the City’s 5,756 miles of roadways. The project analyzed various City assets including protective barriers, pavement markings, signal support structures, MUTCD specialty signs, sign support, sidewalks, and sidewalk obstructions. Following collection, PCI and IRI data are being implemented into the City’s GIS. The ROW assets are being imported into Cartegraph. City of Rancho Palos Verdes, California – Roadway Asset Management Program Mr. Rivera served as the Data Collection Manager for the City of Rancho Palos Verdes’ mobile data collection project for its 150 centerline mile network. The project consisted of utilizing RAC vehicles to provide a ROW asset inventory. The ROW Asset inventory included the following assets: curb and gutter, curb ramps, concrete medians, and guardrails. FIRM Roadway Asset Services 2 years EXPERIENCE 12 years EDUCATION B.S., Mechanical Engineering, University of Central Florida, 2011 B.S., Aerospace Engineering, University of Central Florida, 2016 Sandra Marrero, E.I. PROJECT ENGINEER Ms. Marrero works on the firm’s roadway asset collection projects with a pavement analysis component. Sandra has over eight years of experience evaluating pavement conditions, processing pavement ratings, preparing reports, performing maintenance budget scenarios, reporting the results of project finding in meetings, and discussing with the Client. Her software experience includes Lucity, Cartegraph, Streetlogix, PAVER, VUEWorks, EarthShaper, ArcGIS, AutoCAD, Civil 3D, and the Microsoft Office suite. KEY PROJECTS Pennington County- Pavement Condition Assessment Mrs. Marrero is serving as a Project Engineer for the County’s pavement condition survey for 684 survey miles. Automated collection vehicles will be utilized to collect pavement distress information that follows the ASTM D6433 methodology. Following collection, the County will be provided the RAS Videologger that enables County Staff to visually view information collected from the survey. Central Texas Regional Mobility Authority – Pavement Condition Assessment Mrs. Marrero is serving as a Project Engineer for the automated data collection of CTRMA’s 286 test miles. RAS is utilizing an RAC van to collect imagery on pavement distresses and IRI. RAS is also completing skid testing for CTRMA. Following collection, RAS will utilize the TxDOT Pavement Management Information System to determine distress and pavement condition scores. City of Albuquerque, New Mexico – Pavement Condition Survey Ms. Marrero served as a Project Engineer for the mobile image data collection project of the City’s 4,548 lane mile network. RAC vehicles were utilized, in accordance with the ASTM D6433, to provide the City with a PCI value for each street segment and the overall PCI value for the network. The project also included an extensive ROW asset inventory that included: traffic signs, pavement markings, pavement striping, sidewalks, ADA ramps, driveways, bike lanes, curb and gutter, guardrail, streetscapes, traffic calming devices, polygon mapping, control boxes, backflows, and electrical/water meters. Ms. Marrero assisted with data integration in the City’s pavement management software, VUEWorks. City of Rowlett, Texas - Pavement Condition Assessment and ROW Asset Inventory Mrs. Marrero served as a Project Engineer for the City’s automated data collection project for 327 test miles of pavement and 107 miles of alleys. Additionally, RAS is completing an extensive ROW asset inventory for the following assets: traffic signs, pavement markings, pavement striping, sidewalks, and ADA ramps. The pavement data is being imported into the City’s PAVER database as well as VUEWorks, the City’s asset management system. Ms. Marrero assisted with the development and delivery of the final report. FIRM Roadway Asset Services 1 year EXPERIENCE 8 years EDUCATION B.S., Civil Engineering, University of Puerto Rico, 2013 REGISTRATIONS -FL Engineer Intern, Certificate Number:1100023293 Project Approach Town of Fountain Hills Pavement Condition and Evaluation Related Services 11 Proprietary Information 7.2.4 Project Approach Project Understanding RAS understands the Town of Fountain Hills is seeking a qualified vendor to conduct a block-to-block pavement condition assessment on 390 lane miles of roadway. The pavement condition assessment will be conducted utilizing a Roadway Asset Collection (RAC) vehicle that is equipped with the most advanced 3D surface imaging technology, IMU enabled GPS, differential encoder, and a Ladybug 360 degree camera for ROW capture. RAS will calculate an ASTM D6433 Pavement Condition Index (PCI) score using the extent and severity distress data captured in the field. While conducting the pavement condition assessment and listed as an optional service in the RAS fee structure, the RAC vehicles can also capture ROW attributes for traffic signs, pavement markings, excess pavement in the gutter pan, and speed humps. The pavement data will be processed per street segment for the entire roadway network using the continuous and detailed 20-foot linear samples acquired by the RAC Laser Crack Measurement System (LCMS- 2) vehicle. RAS will adopt the Town’s existing GIS centerlines and Segment ID’s that were assigned during the last round of data collection. As conducted on previous assignments in Fountain Hills, the RAC vehicle will two pass test arterials and collectors while single pass testing residential roadways, resulting in approximately 203 survey miles. The detailed data collected by the RAC vehicle will eventually be rolled up to the segment level for PCI reporting purposes. The Town will receive the condition and analysis results in several formats such as Excel Spreadsheets, geodatabases for plotting within a GIS environment, ESRI Storymap’s, and an RAS Microsoft Power BI Dashboard that displays the results of the Lucity analysis using presentation quality graphs and illustrations. Pavement Data Collection Equipment To complete the automated pavement condition survey, the RAS team will utilize RAC vehicles from the fleet of four (4), equipped with:  The LCMS-2 camera is a downward-facing laser array providing images used to evaluate data that conforms with ASTM D6433 protocols, which uses two 1- millimeter-pixel resolution line scan cameras to provide a customized digital condition rating system to collect user defined severity/extent-based pavement distresses and rutting. Town of Fountain Hills Pavement Condition and Evaluation Related Services 12 Proprietary Information  The pavement distress type, density, severity, and extent are collected with the LCMS-2 and are used to calculate a Pavement Condition Index (PCI) score, between 0-100, that represents the condition of 100% of the driven lanes.  Point Gray Ladybug 5+ 32MP 360-degree High-Definition camera (utilized for accurate ROW asset capture, extraction, and pavement QA/QC) is far superior to multiple independently mounted HD cameras.  Linear distance measuring to within +/-0.5%.  A class 1 inertial profiler for simultaneously capturing dual-wheel path (left and right) International Roughness Index (IRI) measurements to the hundredth inch, in accordance with AASHTO R48. The profiler has gone through ASTM E-950 certification and has been independently certified by Texas A&M Transportation Institute (TTI) and the National Center for Asphalt Technology (NCAT). The inertial profiler meets the requirements and operates in accordance with AASHTO Standards M 328, R 57- 10, R 56-10, and R43M/R43-7.  Applanix POS/LV with DGPS (Provides accurate internal GPS navigation for geo-locating pavement and right of way asset information). All subsystems for the RAC vans are integrated using tight synchronization between all data streams on the truck in real-time, referenced to both time and distance. All sensor locations are coordinated to the vehicle’s reference point, together with the GPS and IMU hardware, using 3D translations and rotations. This allows the final world coordinates of all sensor data streams to be calculated and integrated. The methods for automated data collection and pavement condition rating are repeatable and defensible. Town of Fountain Hills Pavement Condition and Evaluation Related Services 13 Proprietary Information RAS is fully capable of meeting the scope requirements as our team owns four (4) RAC vehicles and retains a strategic partnership with our equipment manufacturer and assembler that can result in mobilizing as many LCMS-2 vehicles as needed for a reasonable project completion timeline. RAS’ access to state-of-the-art equipment ensures project timeline goals are met as the team can supplement additional RAC vehicles or transfer equipment at a moment’s notice for instances of equipment malfunction. Our fleet of RAC vehicles provides the Town an additional line of security, as the equipment is less than a year old. Collection and Provision of High-Resolution Panoramic Digital Imagery The RAS team will utilize RAC vehicles to conduct the pilot and network wide pavement and asset data collection on the Town’s maintained road network. All collected pavement and ROW imagery will be provided in appropriate state plane coordinates, while being collected in a continuous pass at posted roadway speeds. The high-definition panoramic Ladybug camera will be used to inventory and capture right-of-way (ROW) assets for extraction of pavement markings, speed humps, traffic signs, and other assets if selected by the Town. All captured images will be delivered to the Town in .jpeg format and processed at 15-25ft intervals for the entire survey area. The images will be collected as a 360-degree right-of-way panorama, including forward, rearward, and downward pavement viewing images. Each image will be electronically tagged with location information for plotting within a spatial environment. Traffic control will not be required since the RAC vehicle will collect all data in motion and is not required to stop or disrupt traffic during operation. As a value added service, RAS believes that delivery of ALL Image Views is paramount to Town review and as such all imagery (including the LCMS downward imagery) will be delivered to the Town of Fountain Hills at no additional cost. Sample Imagery of ALL Views Delivered to Town at No Charge Town of Fountain Hills Pavement Condition and Evaluation Related Services 14 Proprietary Information Detailed Quality Assurance & Quality Control Work Plan While the 10-mile pilot hosted by Scot Gordon and Zac Thomason will illustrate the completeness and accuracy of the RAS data stream. RAS has also developed a detailed 30-page Data Quality Management Plan (DQMP) to provide our clients with a systemized method for assuring data is representative of the conditions present. Included in the DQMP is a description of condition survey procedures, data collection vehicle and system calibration/verification, range of accuracy, data checks, verification by trained engineers, roadway segment review/verification, and integration into asset management programs. All RAS projects include the establishment of a field pilot study that allows the collection, processing, and review of condition data to ensure data is representative of the expectations and needs of Town staff. Following this step, corrections to processing routines are made based on standard construction practices/soil conditions. The focus on data quality at the initiation of the project saves the Town time/money and provides high- quality deliverables that can be utilized in practice. We can supply the Town of Fountain Hills with our published 30-page DQMP at the request of Town Staff. The documents length and technical nature didn’t make it suitable for inclusion with this proposal submission. Quality Assurance Step #1 – Network Database Review (Gap Analysis) While a simple routine in every project, the cornerstone to project initiation is conducting a complete diagnostic of the roadway network, including a full and thorough assessment of the Town’s GIS centerline and Lucity inventory database. This will include a review of the Town’s data requirements (i.e., what information is needed/desired) and subsequent data gap analysis (what is missing). RAS will include the following in this initial review: a. Base inventory information, (i.e., Functional Class, lengths, areas, surface type, etc.) b. Historical condition information c. Status of survey history d. Construction and maintenance history e. Review & update of maintenance and rehabilitation treatments and unit costs f. Review & update of existing pavement deterioration curves g. Review & update of Lucity analysis operating parameters to ensure the Town is maximizing the latest updates Town of Fountain Hills Pavement Condition and Evaluation Related Services 15 Proprietary Information Quality Assurance Step #2 – Mobilization/Calibration/Pilot/Kickoff At the outset of the project, RAS will work in conjunction with the Town’s Staff to review the Town’s existing GIS centerline files and legacy Lucity Street Segment Inventory for use in this project. After an initial review, RAS will conduct a kickoff meeting with Town staff to discuss the GIS files, deliverable formats, and additional data needed by RAS for preparation, process for interim review, and project administration. During the kickoff meeting, team members will also determine a pilot area of approximately 10 miles for collection and review of all deliverables by Town Staff, obtain a collection letter, and determine areas that are of greatest priority for collection or that require special timing for collection due to festivals such as Fountain Hills Music Festival, Ballet Under the Stars, Turkey Trot, or other events. The importance of the field pilot cannot be understated as it has become a routine milestone for the RAS Team on all pavement condition projects. The pilot allows RAS to collect, process, and review condition data with Town Staff to ensure accuracy with the data collection and interpretation protocols. In addition to the Town’s eventual review of the 10-mile pilot data, the review of the RAS condition data will be hosted by Senior Pavement Engineer, Scot Gordon, PE, IAM, and Project Manager, Zac Thomason, in the field, where they will review site conditions with Town Staff. The importance of this step is to make necessary corrections to the processing routines that result from local standard construction practices/soil conditions and to ensure accuracy with the approach. As a cornerstone to the development of quality data deliverables, Scot Gordon, PE has performed a pilot data field validation with agency staff on hundreds of pavement condition surveys. Throughout his career, Scot has worked with various agencies on the field pilot data validation including but not limited to:  San Antonio, TX  Houston, TX  Durham, NC  Virginia Beach, VA  Chicago MAP, IL  Indianapolis, IN  Fort Worth, TX  Salt Lake City, UT  Corpus Christi, TX  Denver, CO  Albuquerque, NM  Charlotte, NC “The pilot data field validation was crucial to our acceptance and buy-in on our pavement quality assessment. Mr. Gordon explained each condition, the methods of measurement of the distresses, and how the PCI score calculations could help us understand the meaning and relationship of the values to our perceptions of pavement performance. This personalized process allowed us to make maintenance decisions from the data provided with confidence.” Zayne Huff, City of Southlake Town of Fountain Hills Pavement Condition and Evaluation Related Services 16 Proprietary Information Quality Assurance Step #3 – Subsystem Monitoring In The Field During the survey, the collection software monitors the GPS subsystems and alerts the operator if the GPS feed drops out or if GPS quality is compromised. It displays the satellite count, which should normally remain above four (4). If the satellite count falls below that threshold due to the vehicle entering a tunnel, driving under a bridge, or driving in a region with tall buildings, this will be displayed for the operator. The IMU will provide acceleration-based corrections during this time to ensure that GPS accuracy is maintained as much as possible. Depending on the grade of IMU used in the system, even total GPS outages of 1-3 minutes can be tolerated with almost no degradation in positional accuracy. The collection software monitors the status of the subsystems that have been installed and enabled. A summary screen is displayed for the operator which shows representative data values and images in real-time, along with any warnings or errors being generated based on real-time diagnostics. As part of standard practice, the operator continuously monitors the validity of data being reported by the quality monitoring systems. The RAS team will also review a randomized sample of images to ensure that it complies with the requirements of the specifications throughout the course of the network matching and event QC. Upon completion of the network matching, an image report shall be generated with the total image count compared with that expected for each road. Daily Progress Reports are produced by uploading sensor, GPS, and event data and matching against the road network definition. Progress reports include the following, road sections collected, length discrepancies, and remaining sections to be completed. Calibration of the laser profiling system includes laser sensor checks and block tests to ensure the accuracy of the height sensors, accelerometer calibration “bounce tests” to verify proper functioning of the height sensors and accelerometers, and distance calibration to ensure accuracy of the DMI. Calibration of the DMI and some accelerometers occurs during field testing, and each is checked and recalibrated on a regular basis. RAS has a proven Quality Assurance/Quality Control procedure for all RAC projects that begins with our Data Quality Management Plan (DQMP). The systems and data types collected by the RAC vehicle are: • Vehicle Travel Distance from Distance Measurement Instrument (DMI) • Vehicle Position from differentially corrected GPS (DGPS) • Vehicle Orientation (pitch, heading, roll) from the Inertial Measurement Unit (IMU) • Longitudinal Profile Roughness (IRI) • Ladybug 5+ 360-degree Images • Laser Crack Measurement System (LCMS) 2D and 3D Images Town of Fountain Hills Pavement Condition and Evaluation Related Services 17 Proprietary Information Quality Assurance Step #4 – Automated Crack Analysis & Engineer Review After data is collected in the field and uploaded to the office environment, it is imported using the RAS pavement rating tool Road TRIPTM (Technical Rating Intelligence Program). The import process creates mappings to the data so that users do not need to keep track of where the data is stored on central data server(s). At this stage, the major data processing tasks also occur, such as generation of right-of-way and pavement image streams; calculation of profile, roughness, rutting, detection of cracks, lane-markings, man-made objects, and other distresses. The automated crack analysis detects cracks which are overlaid on the pavement images and offset to assist with the verification of the detected cracks. During reporting, the distress cracks are defined by road zone and accumulated according to the units defined in the client specification. The severity levels are identified based upon the defined limits (ASTM D6433) and verified for resolution through visual quality control checks of image files. Where density metrics are required, these are determined using the length of the interval being reported and the width of road zones included. An experienced pavement inspector will perform QC to confirm the distresses and severity of the pavement condition data collected by the automated technology. This manual quality review is performed, in accordance with the principles of the ASTM D6433 standard, using the LCMS pavement images gathered during collection with the distresses superimposed and color coded, such as what can be seen in the corresponding image. The RAS approach is truly a combination of objective based laser sensors, powerful algorithms, artificial intelligence (machine learning), and personal review by a Professional Engineer. Town of Fountain Hills Pavement Condition and Evaluation Related Services 18 Proprietary Information Optional Row Asset Data Collection The panoramic ROW images from the Ladybug 360 camera system will be provided as an additional database submitted in a GIS compatible shapefile and/or geodatabase. These images will be captured for all selected assets within the Town’s maintained roadways and will include detailed attributes and conditions for potential assets such as: pavement markings, pavement striping, speed humps, traffic signs, and can be expanded to virtually any other asset that can be identified in the HD 32MP imagery. With input from Town staff, the following attributes for pavement markings will be identified: AssetID, X,Y location, photo image link, type (left/right/straight arrow, only, xing, bike, lane, merge left/right arrow, slow, etc.), marking color, and physical condition (good, fair, poor). Additionally for pavement striping typical attributes also include length, width and lane configurations. The HD images can then be post-processed using RAS software to collect attributes for each asset type captured. For example, Traffic signs/supports, which are listed as a point feature, are commonly captured with the following attributes (the final list of attributes will be determined with input from the Town staff): AssetID, X,Y location, sign type (MUTCD code), sign text, photo image link, physical condition rating (good, fair, poor), location, support structure type, sign direction, and comments. The RAS asset extraction system is not limited to these assets as we can inventory and extract attributes on nearly any asset that can be identified in the images. Other common roadside features for capture include sidewalks, pedestrian curb ramps, curb/gutter, traffic signals, streetlights, fire hydrants, bus stop shelters, medians, and many others. Town of Fountain Hills Pavement Condition and Evaluation Related Services 19 Proprietary Information Data Preparation, Delivery, & Import into the Lucity Software As a strategic business partner of Lucity, the RAS team is commonly tasked with importing new pavement inspection data into an agency’s production Lucity environment. The RAS team has a strong working relationship with Jim Muller, CentralSquare Account Executive, Steve Schultz, CentralSquare Product Manager, and Matt Miner, CentralSquare Principal Solutions Architect, who are intimately familiar with the Lucity pavement module and RAS integration routines. A typical Lucity import happens in two phases as follows: Phase I: Test Environment – most agencies operating an enterprise system such as Lucity have a test environment specifically set up for vendors to test a data load prior to moving into production. During this stage, the RAS team formats the segment level distress extent and severity data for import into the Lucity pavement module software. The data is loaded as a new inspection such that it DOES NOT overwrite any legacy data within the software. Old inspections are retained and simply no longer utilized for budgetary modeling purposes. Data formats for Lucity users include rolling up the RAS detailed inspection data to match the Town’s Lucity segmentation and ensuring all data is linked to the appropriate SegmentID. The distress types are confirmed to be in the correct order and distress density data (PCI, RI, and optional SI) populated. In addition, the Lucity GIS Manager will be validated to ensure it retains full synchronization with the implemented Lucity database. While RAS routinely imports data to Lucity, we find it imperative to begin with a test environment to fully ensure data integrity. Phase II: Production Environment – Upon completion of the import to the test environment, the RAS Team has our Lucity support team review the loaded data to ensure there are no gaps in the data structure or format. Upon acceptance of Lucity, the RAS team moves the database into the Town’s production environment, generally in off- hours to ensure minimal downtime for Town Staff and Services. RAS has the team, resources, and expertise to conduct a seamless production load to Lucity. Town of Fountain Hills Pavement Condition and Evaluation Related Services 20 Proprietary Information RAS Lucity Configuration Workflow While running the models themselves might seem straight-forward, the RAS approach to such an analysis involves the following sequences and client engagements during the process:  Current database review – most issues can be resolved at the initiation of a project by completing a brief review of the Town’s existing GIS centerlines and Lucity inventory setup. All RAS projects begin with a review by our Project Manager, Zac Thomason. Given Mr. Thomason’s familiarity with the Town’s legacy inventory and Lucity analysis parameter setup, he will discuss the current inventory and configuration adoption with Town staff. Any recommended changes to the segmentation or budgetary model configuration will be discussed at this stage.  Maintenance & Rehabilitation Setup – to ensure the results of the budget model runs meet the Town’s expectations, Mr. Thomason and Mr. Kramer will discuss the Town’s current Maintenance and Rehabilitation practices to ensure the Lucity system is setup to mimic/model real world practices. This includes reviewing Min/Max PCI, Breakpoint PCI, decision trees for treatments, costs, and reset PCI values. As a Professional Engineer with extensive pavement experience, Mr. Kramer is well versed with the application of pavement rehabilitation techniques, trigger points, real-world impact to PCI, and life cycles. As a part of this process, RAS will work with the Town to determine the right treatment (prescription) at the right time. RAS can also discuss other treatments that the Town may or may not be using, their benefits, their return on investment, and their adoption across the Country. The results of the scenarios would include investment benefit information indicating the cost per square foot of benefit for each maintenance strategy based on maintenance rehabilitation costs. This can be reported in a number of ways, but most commonly as the cost per square foot to increase the PCI by increments of 1 point.  Deterioration Curves – forecasting pavement conditions within Lucity requires a detailed set of pavement deterioration curves for each roadway traffic classification, pavement material type, and strength designation. Mr. Gordon, Senior Pavement Engineer, will review the existing deterioration curves to ensure they reflect realistic degradation rates in the Town. If alterations to the curves are Town of Fountain Hills Pavement Condition and Evaluation Related Services 21 Proprietary Information necessary, Scot will lead the update with the team prior to the production data load into Lucity. Scot Gordon and the RAS team have developed hundreds of deterioration curves based on collected data. Scot will work with the historical data from Fountain Hills, along with the collected data from this project, to develop updated and further refined deterioration curves for each combination of street classification and pavement surface type, representative of the Arizona climate. RAS has protocols in place that preserves historical collection data and utilizes past surveys to assist in modeling through documenting the change in conditions between past surveys and the current collected data. RAS can make the comparisons between the surveys easily viewable for Town staff to determine if outliers exist. An example of data integration between collection cycles comes from Scot and the RAS Team’s work with the City of San Antonio, Texas. Scot provided the City a method to determine the age of each pavement section and refine the deterioration curves by evaluating the decrease in PCI per year from historical pavement evaluation data. The delta decrease, or difference in PCI value per year, along with the range of PCI value of the roadway provided guides to shape the deterioration curve at each age.  Supersegment Development – the Lucity pavement module runs budgetary models using a “Supersegment” layer within the application, which is simply individual segments stitched together to form a logical project or management section. The benefit of this Supersegment feature within Lucity is that it runs the budgetary scenario at the project level, producing real-world rehabilitation plans that are ready for Town review, modification, or acceptance. The RAS team will also provide recommendations to Town staff for best practices in developing practically sized Supersegments to yield model results that can be acted upon. Typical constraints used when building Supersegments includes relative condition, classification, and an upset limit to prevent projects from becoming too large. A Microsoft Access database of the final configuration, setup, and models will be provided to the Town. Town of Fountain Hills Pavement Condition and Evaluation Related Services 22 Proprietary Information Infusing Optimization into the Lucity Analysis Optimization is a broad-based term that has many different definitions. For most pavement management systems, optimization is the ability to prioritize a multi-year rehabilitation plan using several different factors that are important to the Town and based on sound engineering constraints. For example, RAS commonly configures the Lucity pavement management system to assign a different set of maintenance and rehabilitation activities for roadways of different pavement type, traffic, and strength. With the rehabilitation and maintenance activities set up, an RAS and Lucity analysis assigns “Criticality” factors to every segment that assist in prioritizing the multi-year plan and the development of a financially optimized rehabilitation plan. Critical segments are simply those that are within 2-4 points of falling into the next rehabilitation category. However, this is only the beginning of an RAS and Lucity Optimized Multi-Year Plan. The RAS team also includes a true Financial Optimization Framework (FOF) as a part of the Lucity analysis. With the critical segments all defined within the analysis, the next step is to sequence the optimization plan by the “Cost of Deferral”. This financial optimization sequence allows the analysis to consider the future costs of deferring segments and allowing them to fall into the next more expensive rehab category. By calculating the cost of deferral, the sequence identifies the “Need Year” of each segment and prioritizes the highest cost of deferrals while focusing on selecting critical roads that are within a few points of dropping into the next category. Zac Thomason, Project Manager, and Mark Kramer, Assistant Project Manager, are well versed in the optimization logic within Lucity and actively work with the CentralSquare development team to ensure peak performance in configuration. To further enhance upon optimization, Senior Pavement Engineer, Scot Gordon looks forward to visiting with Town staff on other innovative considerations to pavement management such as including PCI of curb and gutter in selecting roads for maintenance; whether or not to deduct for potholes if the Town has a pothole repair crew; how to get all council districts above a specific PCI threshold; and focused analysis on top traveled corridors where you are improving the level of service on the roads receiving the greatest traffic while also analyzing the impacts to the remainder of the network. Town of Fountain Hills Pavement Condition and Evaluation Related Services 23 Proprietary Information Lucity Budget Model Development & Final Report Summary The RAS Team separates itself from our competition through our devotion to the most critical aspect of the project, which is collaborating with the Town on how to take the objective condition data and utilize it to make meaningful decisions involving the Town’s infrastructure. In addition, RAS can supplement a standard analysis with ESRI Storymap’s or even a Microsoft Power BI Dashbaord. RAS follows the “AASHTO Transportation Asset Management Guide – A Focus on Implementation” which provides a framework for organizations to utilize and update the management of their assets to improve decision-making, monitor performance, and support integrated decisions in programming projects. The observed distresses and calculated PCI values will be used within Lucity to rank projects using distress types indicating load, non-load, and environmental related causes of each distress. Running budgetary models within a pavement management system requires a deep understanding of the database structure behind the application. The RAS approach to budgetary modeling will involve up to 8 pavement management scenarios using different philosophies, budget levels, and distributions. While RAS will define the scenarios to be run with Town staff, at a minimum the following questions should be answered with the scenarios:  How much annual funding is required to maintain existing pavement conditions?  What will the estimated network PCI be over the next 5 years if current funding levels are maintained?  How much funding will be required to target a specific PCI over the next 5 years?  What will the estimated PCI be in each Council District?  What budget is required to control the growth in backlog?  What are the recommended pavement strategies? Town of Fountain Hills Pavement Condition and Evaluation Related Services 24 Proprietary Information RAS will also consult with Town staff to develop models utilizing different types of rehabilitation strategies (worst first, best first, most economic, need year, etc.). RAS understands that getting buy-in from Town Administrators and Elected Officials means developing a long-range rehabilitation plan that considers local priorities. The RAS team will ensure that already approved rehabilitation work is programmed into the budgetary models for selection during the run. In addition, RAS will consult with Town staff to identity the total cost (mill, overlay, traffic control, striping, etc.) of each rehabilitation method. RAS will provide the Town with a final report/executive summary including study objectives, methodology, road inventory, a summary of current pavement conditions, PCI values, recommended maintenance needs, street prioritization lists, and probable costs. In addition, the Town will receive an electronic database consisting of statistical charts, graphs, summary tables, and area maps illustrating all PCI results, pavement type, overall road quality, and findings from the pavement evaluation. The summary report will be provided for review by Town staff and modified based on comments to produce a final report which will be delivered as a bound report and in Microsoft Word (.doc and .docx) and Adobe (.pdf) format. Collected data will be formatted as an ESRI Geodatabase. Additionally, the pavement condition survey data will be imported into Lucity for use in budget analysis, and repair planning and prioritization. Council Presentations The RAS team will provide a public presentation to the Town Council, including data, charts, and all final summary report data to showcase the results of the pavement condition survey. Mr. Thomason has extensive experience preparing and presenting results of pavement and asset conditions assessments, as well as pavement budget scenarios and maintenance plans to Councils and Commissions as final reports. This is a standard scope that we provide to all our asset management clients. Zac has worked with County Commissions or Town Councils with several agencies including Fountain Hills, AZ; Prescott, AZ; Pasadena, CA; Long Beach, CA; Flower Mound, TX; Steamboat Springs, CO; and Minnehaha County, SD to name a few. Town of Fountain Hills Pavement Condition and Evaluation Related Services 25 Proprietary Information Approach to Contract Management RAS utilizes the Project Management Body of Knowledge (7th edition) to define and adhere to the principles of planning. This guide provides a breakdown of general management including methods for planning, organizing, staffing, executing, and controlling the operations of an organization. RAS emulates organizational strategies established by the guide to develop clear lines of communication for the successful completion of the Town’s goals. Perspective on Partnering and Customer Service RAS’ philosophy on project ownership is simple and centered on the development of a collaborative partnership with the Town’s Staff. While any vendor can collect some form of condition data and move on to the next project within a few weeks, RAS prides itself on collaboration with our clients to develop best in class pavement management programs that result in a long-term relationship between RAS and the Town. Our relentless dedication to client satisfaction has resulted in repeat projects from municipalities. By conducting a collaborative field pilot validation study (further described on page 15 of this proposal submission), RAS is acquainted with the Town’s goals for the collection project. The transparency of goals enables RAS to provide data and pavement management system integration that works for the Town’s needs. Scheduling and Staffing RAS retains two Professional Engineers with over 50 years of combined experience. In addition, RAS’ Project Manager and Principal have been leading ASTM D6433 pavement condition projects for a combined 30 years. RAS has four Pavement Data Collection teams and will designate a minimum of one RAC vehicle (2 team members) for project completion within the allotted schedule. The Pavement Data Collection team will collect condition data seven days a week to account for natural delays caused by weather. Collection protocols ensure that the schedule will remain on time and within budget. Town of Fountain Hills Pavement Condition and Evaluation Related Services 26 Proprietary Information Alternate Approach: RAS Data Viewer & Videologer If the Town desires web-hosted condition photos, as an alternative additive service, RAS can provide the Town with the RAS Video Logger which is a web hosted full-service image viewer that allows our clients to select a section of roadway from the GIS-based map to visually display the inventory elements and the results of their survey. The viewer is hosted on a reliable web platform such as Amazon Web Services (AWS). The RAS Video Logger allows the Town to load pavement and ROW imagery for a specific location within the Town and sequentially travel down the roadway. If needed within the video logger, the Town can load high-resolution images to provide more detailed site investigation while displaying PCI, IRI, and Rut index data for the selected section. In addition, the Video Logger houses the Ladybug Panoramic ROW imagery, LCMS downward pavement imagery, PCI scores, and right of way inventories. Following the Pavement Condition Assessment, all LCMS-2 camera imagery will be loaded to the videologger with each image resulting in 1 mm-pixel resolution and horizontal resolution of 4,000 pixels. The benefit of having the LCMS imagery on the same platform as the Ladybug imagery is the ability to use the forward facing camera to see what a typical driver would see from a windshield while comparing it against the downward LCMS laser array that focuses only on the pavement surface itself. The imagery captured from the LCMS-2 camera will display various pavement distresses for asphalt concrete including cracking (alligator, block, edge, longitudinal, transverse, joint reflection), patching and potholes (patching and utility cut patching, potholes), surface deformation (rutting, shoving, depressions, bumps and signs, corrugation), surface defects (bleeding, raveling, weathering), and miscellaneous distresses (railroad crossing). Project Schedule Town of Fountain Hills Pavement Condition and Evaluation Related Services 27 Proprietary Information Milestones and Deliverable Schedule One way RAS optimizes its field data capture is by collecting pavement condition data 7 days a week, which allows our team to remain ahead of schedule when events such as storms or other weather-related events do occur. RAS anticipates utilizing one RAC vehicle as the field survey will take approximately 1 to 2 weeks depending on weather. RAS will prepare and monitor the locations of large-scale events and festivals like Fountain Hills Music Festival, Ballet Under the Stars, Turkey Trot, or other events to avoid high congestion periods and closed roads. Our knowledge of events, festivals, and regular congestion periods allows the RAC vehicle to efficiently collect data that saves the Town time and money. The RAS management team has an outstanding record of completing projects similar in size and scale on time and within budget. The schedule presented below has been developed around a strategic objective of completing the roadway data collection effort, field pilot review, PCI processing, Lucity load, Lucity configuration, budgetary modeling, and final report within a five and a half month timeline to accelerate the Town’s desired schedule. Should the Town add additional right of way asset inventories to the scope of work, the inventory would be developed concurrently with the pavement condition data and within the existing schedule. Anticipated Project Milestone: Notice-to-Proceed………………………10/10/2022 Kick-Off Meeting………………………..10/17/2022 – 10/21/2022 Phase I Report………………………….02/27/2023– 03/10/2023 Phase I Council Presentation…………03/27/2023 – 03/31/2023 Phase II Lucity Implementation……….02/27/2023 – 03/10/2023 Project Completion……………………..03/31/2023 The anticipated project milestones are dependent upon receipt of the notice to proceed and Town purchase of the Lucity software for completion of Phase II. RAS can still maintain the Phase I report schedule if the purchase and install of the Lucity software is delayed. We can maintain this schedule as RAS retains Lucity licenses for in-house analysis purposes. Task Days PROJECT INITIATION Project Initiation, Kick-Off, & Centerline Identification 12 Field Mapping Development, Segmentation Review, & Routing Setup 51 Pavement Width Verificaiton & Measurement 39 Roadway Asset Collection (RAC) Vehicle Mobilization/Calibration 3 RAC Pilot Survey Area - 10+ Miles 3 RAC Pavement Distress & Imagery Collection 14 DATA MANAGEMENT Pavement Evaluation, AI Processing, & QC 36 Pilot Data Review with Town Staff 1 HD Digital Image Processing & Delivery 42 RAS & City Review of Final Data (Prior to Lucity Load) 24 Lucity Distress Data Import & Load 30 Lucity Analysis Configuration, Review Budgetary Modeling, & Multi-Year Plan 30 Final Report & Condition Summary 30 Professional Services/GIS Database Work Field Work Extraction/Evaluation Work QA/QC Work Final Deliverable 651 2 3 4 Months Pricing Town of Fountain Hills Pavement Condition and Evaluation Related Services 28 Proprietary Information Pricing Proposal RAS team members have managed/provided field data collection, performed QA/QC, and developed pavement management plans on numerous similar projects to the scope of services requested by the Town. RAS is a financially secure limited liability company that practices strong internal controls, conservative business practices, and a commitment to continued financial growth. RAS is registered to do business in Arizona by the Arizona Corporation Commission (#23412705). The RAS fee structure for this assignment can be found below with itemized tasks to illustrate the full scope of this project. The RAC vehicle will survey the arterial and collector roadways in two directions while single pass testing the residential roadways to maintain the inspection sample philosophy adopted on legacy surveys. The resulting survey mileage is approximately 203 survey miles. ITEM 8. H. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 10/18/2022 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Grady E. Miller, Town Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approve a settlement agreement and release and adopt Resolution 2022-45 approving a first amendment to the development agreement between the Town of Fountain Hills and N-Shea Group, LLC and Park Place Properties, LLC. Staff Summary (Background) The Park Place development agreement between N. Shea and the Town of Fountain Hills was approved on June 16, 2016, and terminated by its terms on June 17, 2022 (although some provisions survived termination). In June 2022, the developer sought legal remedies to address its concerns about the expiration date so that the remaining phases of the project could be constructed. Over the past several weeks, the Town of Fountain Hills and the developer have worked together to resolve differences and issues between the parties, including resolving the litigation relating to the Park Place development. As a result, both sides have negotiated key provisions to amend the development agreement that are important to each side. If approved by the Town Council, the prior claims from the developer against the Town of Fountain Hills will be dismissed with prejudice. Under the terms of the amended development agreement, the developer will have a 12-month extension of time from the date of the settlement agreement to obtain the permits to construct the remaining phases of the Park Place project. The settlement agreement also reaffirms a number of existing provisions contained in the previously approved development agreement. Town Attorney Aaron Arnson and outside legal counsel Kristin Mackin have reviewed the settlement agreement and amended development agreement and believe that it addresses previous concerns raised by the Town and resolves the litigation. Town Manager Grady Miller and Development Services Director John Wesley also agree that the agreement and amendment satisfy the Town's interests. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis The settlement agreement and amended development agreement will resolve current litigation and enable the downtown to be developed and completed, a long-time goal of the town.    Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the settlement agreement and release as well as the amended development agreement. SUGGESTED MOTION MOVE to approve the Settlement Agreement and Release between the Town of Fountain Hills and N-Shea Group, LLC and Park Place Properties, LLC, and adopt Resolution 2022-45 approving a first amendment to the Development Agreement between the Town of Fountain Hills and N-Shea Group, LLC and Park Place Properties, LLC. Attachments Resolution 2022-45 - Development Agreement  Settlement Agreement for Park Place  Form Review Inbox Reviewed By Date Finance Director David Pock 10/13/2022 02:23 PM Town Attorney Aaron D. Arnson 10/13/2022 02:29 PM Town Manager (Originator)Grady E. Miller 10/13/2022 04:27 PM Form Started By: Grady E. Miller Started On: 10/13/2022 09:46 AM Final Approval Date: 10/13/2022  RESOLUTION 2022-45 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING A FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN THE TOWN AND N- SHEA GROUP, LLC AND PARK PLACE PROPERTIES, LLC. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. The First Amendment to the Development Agreement between the Town of Fountain Hills, N-Shea Group, LLC, and Park Place Properties LLC dated June 17, 2016, is hereby approved in substantially the form and substance attached as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are authorized and directed to execute all document and take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills October 18, 2022. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Grady E. Miller, Town Manager Aaron D. Arnson, Town Attorney EXHIBIT A TO RESOLUTION 2022-45 [First Amendment to Development Agreement] See following pages. WHEN RECORDED RETURN TO: Town of Fountain Hills Attn: Town Clerk 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 FIRST AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND N-SHEA GROUP, LLC AND PARK PLACE PROPERTIES, LLC THIS FIRST AMENDMENT (this “Amendment”) is made and entered into October 18, 2022 (the “Effective Date”) by and between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and N-Shea Group, LLC, an Arizona limited liability company (the “Developer”) and is acknowledged by Park Place Properties, LLC, an Arizona limited liability company (the “Owner”). RECITALS A. The Town, the Developer, and the Owner entered into a Development Agreement dated June 17, 2016, Maricopa County Recording Number 20160478461 (“Development Agreement”). B. A dispute arose between the Parties concerning the interpretation of the Development Agreement, which the Parties resolved through a separate Settlement Agreement and Release (“Settlement Agreement”), which is approved and executed by the Parties concurrently with this Amendment. C. The Parties now desire to amend the Development Agreement as provided in this Amendment to allow Developer to complete the remaining phases of the Project as defined in the Development Agreement. FIRST AMENDMENT NOW, THEREFORE, the Development Agreement is amended as follows: 1. Incorporation of Recitals. The Recitals are incorporated by this reference as if fully set forth herein. 2. Phase I Painting. Developer shall repaint all exterior Phase I buildings using the same color scheme as approved for the Phase II and III buildings, and Developer shall also paint previously unpainted/unfinished concrete surfaces such as beams, patios and other edges using the same color scheme as approved for the Phase II and III buildings; provided, however, painting shall be completed no later than contemporaneously with the painting of Phase II or III buildings. 3. Phase I Screening. Developer shall install painting, plantings and/or trellises (“Screens”) in lieu of the green screens for buildings C and D as shown on the approved Concept Plan and construction drawings for Phase I; provided that such Screens shall not require any structural change to the parking area or other portions of buildings C and D and that no change will be required that reduces the air flow required by law in the parking garages as determined by Shums Coda. 4. Section 2 is amended to allow Developer twelve (12) months from the Effective Date of this Amendment (“DA Extension Deadline”) to obtain permits for construction of Buildings B, E, and F. The Parties further agree that so long as the permits for construction of Buildings B, E, and F are obtained within the DA Extension Deadline, Developer shall be allowed to proceed with development of Phases II and III on the Property in accordance with the Development Agreement as modified by this Amendment. 5. Concept Plan Review. The Parties acknowledge that the Concept Plans for Phases II and III were approved by the Town subject to the stipulations of the Town Council. The Town agrees that it will provide comments on the Concept Plans submitted by Developer under the terms of the Council stipulations only within 10 days of the approval of this Amendment by the Town. The Town agrees to expeditiously process Plaintiffs’ responses to such comments. In the event of any dispute between Plaintiffs and Town staff concerning application of codes and ordinances during review of the Concept Plans, Plaintiffs and Town agree to use Shums Coda as an intermediary. 6. Section 3.3 is amended to reflect that Phases II and III shall be developed concurrently. “Developed concurrently” shall mean that building permits for both phases may be issued separately prior to vertical construction on either, but that the Phases shall be built in a staged manner typical to customary construction practices when constructing multiple buildings of similar scale and location 7. Developer’s obligations under Section 4.4(C) and 4.5 concerning the Pocket Park are deemed satisfied and Developer has no further obligation under those sections. 8. Section 6.2 is amended to allow construction to commence on Phases II and III after the DA Extension Deadline provided that the permits for buildings B, E, and F are obtained prior to its expiration. 9. The Developer agrees to make a reasonable, good faith effort to locate transformers installed after the Effective Date of this Amendment to the rear of the property, not along the Avenue of the Fountains. 10. Section 9.2 of the Development Agreement is amended to include the Settlement Agreement and this Amendment as constituting the entire agreement between the Parties. In the event of conflict between the Development Agreement and Settlement Agreement, the Settlement Agreement shall prevail. 11. No other changes. All other terms and conditions of the Development Agreement shall remain in full force and effect unless explicitly modified by this Amendment or the Settlement Agreement. IN WITNESS WHEREOF, the undersigned executed this Amendment on the dates below: TOWN OF FOUNTAIN HILLS _________________________ ________ Ginny Dickey, Mayor Date N-SHEA GROUP, LLC ______________________ _________ ATTEST: __________________________ Linda Mendenhall, Town Clerk PARK PLACE PROPERTIES, LLC _______________________ _________ APPROVED AS TO FORM: ___________________________ Aaron D. Arnson, Town Attorney Page 1 of 5 SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release (“Agreement”) is made between N-Shea Group, LLC, an Arizona limited liability company, Park Place Properties, LLC, an Arizona limited liability company, and the Town of Fountain Hills, an Arizona municipal corporation. RECITALS A. On or about June 15, 2022, N-Shea Group and Park Place Properties (collectively “Plaintiffs”) filed a Verified Complaint in Maricopa County Superior Court, Case No. CV2022-007609 (the “Dispute”), seeking declaratory relief, injunctive relief, and damages for breach of contract arising out of the Development Agreement Between the Town of Fountain Hills and N-Shea Group, LLC and Park Place Properties, LLC, entered on June 17, 2016 (“DA”). B. Each Party has made a careful and independent investigation into the facts deemed by such Party to be material to the covenants and agreements set forth herein, and all past, present, or potential disputes or claims existing among the Parties. Because of the desire of the Parties to resolve these matters, and because of the expense and uncertain outcome of any litigation involving such claims, the Parties desire to enter into this Agreement to resolve the Dispute. Each Party believes that this Agreement is in their best interest, and each Party represents that the Agreement is the product of a compromise and settlement of disputed claims. In consideration of the good and valuable consideration exchanged by the Parties, the receipt and sufficiency of which is acknowledged, the Parties enter into this Agreement: AGREEMENT 1. The foregoing Recitals are true, accurate and correct, specifically incorporated as part of this Agreement as if fully stated herein. 2. This Agreement shall not be construed as a confession or admission of any liability, or other fault in connection with any matter or thing by any party and/or third party related to this Dispute, but rather as a decision to settle and compromise disputed claims. 3. The Town agrees to reinstate and extend the DA on the same terms and conditions of the DA except as may be modified below, and continue the Professional Services Agreement No. 2022-071 between the Town of Fountain Hills and Shums Coda Associates, Inc, and N Shea Group, LLC, approved May 17, 2022 (the “3rd Party Contract”): a) Phase I Painting. Plaintiffs shall repaint all exterior Phase I buildings using the same color scheme as approved for the Phase II and III buildings, and Plaintiffs shall also paint previously unpainted/unfinished concrete surfaces such as beams, patios and other edges using the same color scheme as approved for the Phase II and III buildings; provided, however, painting Page 2 of 5 shall be completed no later than contemporaneously with the painting of Phase II or III buildings. b) Screening requirements. Plaintiffs shall install painting, plantings and/or trellises (“Screens”) in lieu of the green screens for buildings C and D as shown on the approved Concept Plan and construction drawings for Phase I; provided that such Screens shall not require any structural change to the parking area or other portions of buildings C and D and that no change will be required that reduces the air flow required by law in the parking garages as determined by Shums Coda. c) Further Assurances. The parties acknowledge and reaffirm provisions of the DA regarding parking lots (DA Section 4.2(C) and Parking Easement Agreement attached as Exhibit E thereto), Art Walk (DA Section 4.4(A)) Wi-Fi (DA Section 5.7), and Crosswalk Ramadas (DA Section 4.4(B), but that the Pocket Park requirement (DA Section 4.4(C) and 4.5) shall be deemed satisfied (and the DA shall be amended to remove such requirement). Town and Plaintiffs agree that the Concept Plans for Phases II and III (as defined in the DA) were approved by the Town subject to the stipulations of the Town Council. The Town agrees that it will provide comments on the Concept Plans submitted by Developer under the terms of the Council stipulations only within 10 days of the approval of this Agreement by the Town. The Town agrees to expeditiously process Plaintiffs’ responses to such comments. In the event of any dispute between Plaintiffs and Town staff concerning application of codes and ordinances during review of the Concept Plans, Plaintiffs and Town agree to use Shums Coda as an intermediary. d) Concurrent development. Phases II and III shall be developed concurrently. “Developed concurrently” shall mean that building permits for both phases may be issued separately prior to vertical construction on either, but that the Phases shall be built in a staged manner typical to customary construction practices when constructing multiple buildings of similar scale and location. e) DA Extension Deadline. Section 2 of the DA is modified to allow Developer (as that term is defined by the DA) twelve (12) months from the Effective Date of this Agreement (“DA Extension Deadline”) to obtain permits for construction of Buildings B, E, and F. So long as the permits for construction of Buildings B, E, and F are obtained within the DA Extension Deadline, Developer shall be allowed to proceed with development of Phases II and III on the Property in accordance with the DA as modified by this Agreement. Section 6.2 of the DA shall be amended to allow construction to commence after the DA Extension Deadline Page 3 of 5 provided that the permits for buildings B, E, and F have been obtained prior to its expiration. f) The Developer will make a reasonable, good faith effort to locate new transformers to the rear of the property, not along the Avenue of the Fountains. g) The parties will prepare and agree to an Amendment to the DA to reflect the terms of this Section 3, which the Town will adopt by resolution and record the DA Amendment as required by statute. 4. Within ten (10) days of the Effective Date, Plaintiffs shall dismiss the Dispute with prejudice. 5. Developer shall submit within 10 days of the Town’s approval of this Agreement the full set of building plans on Phase II (as the Town expressly acknowledges the prior receipt of building plans and building permit application for Phase III) -- including the grading and drainage plans – such that Shums Coda can issue grading permits for both Phases II and III (just as was issued for Phase I). a. Such grading permits shall be issued expeditiously in a manner and timeframe consistent with metro Phoenix, Arizona, customs and practices. b. Such issued grading permits shall authorize Developer to begin grading immediately upon issuance. c. Once the full set of building plans are submitted to secure such grading permits the building permits shall be deemed simultaneously under review. 6. This Agreement is intended as a complete release of all claims existing between the Parties arising out of or related to the Dispute to the date of this Agreement. Conditioned upon the execution of this Agreement and satisfaction of the conditions set forth herein, the Parties agree that, except as to claims that arise out of this Agreement, each Party, on behalf of itself and anyone who may claim through it, agrees to waive and release any and all claims, causes of action, damages, including reasonable attorneys’ fees and costs, civil liabilities or suits, whether known or unknown, asserted or unasserted, in any manner against the other (including their respective elected officials, successors, assigns, employees, representatives, agents, attorneys, officers, affiliates, directors, shareholders, members, beneficiaries, insurers, and heirs), relating to or arising out of this Dispute to the date of this Agreement. 7. This Agreement is intended only to define the respective rights and obligations of the Parties. Nothing expressed herein shall create any rights or duties in favor of, nor relied upon by, any potential third-party beneficiary or other person, agency, entity, or organization. 8. Neither Party may assign any right or delegate a duty or responsibility under this Agreement without the prior written consent of the other Party. Page 4 of 5 9. The Parties understand and agree that, in the event any term, condition or provisions of this Agreement shall be declared invalid, illegal, or unenforceable, such invalidity, illegality or unenforceability shall not affect any other term, condition or provision of this Agreement, and this Agreement shall be interpreted as though such invalid, illegal or unenforceable, term, condition or provision was not a part hereof. 10. The Parties understand and agree that this Agreement contains the entire Agreement of the Parties and any prior or contemporaneous agreements, understandings or representations, written or oral, are merged herein and extinguished. This Agreement may not be amended or modified, except by written instrument signed by all Parties (or their respective authorized attorney(s) or other representative(s)) and approved by the Town of Fountain Hills Town Council at a duly noticed public meeting. 11. This Agreement shall be governed by and construed in accordance with the laws in the State of Arizona and is subject to cancellation by the Town pursuant to A.R.S. § 38-511, the terms of which are incorporated here by this reference. 12. The Parties represent that they have relied upon the advice of their attorneys, who are the attorneys of their own choice, concerning the legal consequences of this, that the terms of this Agreement have been completely read and explained to the Parties by their attorney(s), and the terms of the Agreement are fully understood and voluntarily accepted by the Parties. Neither this Agreement, nor any provision thereof, shall be deemed prepared or drafted by one Party or another, or it’s attorneys, and shall not be construed more strongly against any Party. 13. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 14. This Agreement shall be conditioned upon the execution of the Agreement by all Parties. The Effective Date shall be the date of the last Party’s signature. Page 5 of 5 IN WITNESS WHEREOF, the undersigned executed this Agreement on the dates below: TOWN OF FOUNTAIN HILLS _________________________ ________ Ginny Dickey, Mayor Date N-SHEA GROUP, LLC ______________________ _________ ATTEST: ________________________ Linda Mendenhall, Town Clerk PARK PLACE PROPERTIES, LLC _______________________ _________ APPROVED AS TO FORM ___________________________ Aaron D. Arnson, Town Attorney