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HomeMy WebLinkAboutAgendaPacket91808REVISED NOTICE OF EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. - EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. - REGULAR SESSION WHEN: THURSDAY, SEPTEMBER 18, 2008 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Jay T. Schlum Councilmember Mike Archambault Councilmember Cassie Hansen Councilmember Dennis Contino Vice Mayor Henry Leger Councilmember Ginny Dickey Councilmember Keith McMahan REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 2 of 4 CALL TO ORDER –Mayor Schlum 1.) ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to §38- 431.03(A)(4), for discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (Specifically, (i) an update regarding all pending litigation matters, and (ii) a possible downtown development agreement). 2.) RETURN TO REGULAR SESSION CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay Schlum INVOCATION – Leann Gratz, representing the Church of the Ascension ROLL CALL – Mayor Jay Schlum MAYOR’S REPORT (i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) Presentation by Sharon Morgan, President of the Fountain Hills Sister Cities organization and participating Fountain Hills students, regarding their activities during the June 2008, Dierdorf, Germany student exchange trip. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), 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. CONSENT AGENDA 1.) CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from August 25, 2008, and September 4, 2008. 2.) CONSIDERATION for approving RESOLUTION 2008-34, abandoning whatever right, title, or interest the Town has in the certain public utility and drainage easements located at the northerly property line of Plat 431, Block 7, Lot 2 (17518 E. Hawley Drive) as recorded in Book 395, Page 41, Records of Maricopa County, Arizona. EA08-08 (Honjo) 3.) CONSIDERATION of approving the SECOND AMENDMENT to the Hiking License Agreement between MCO Properties L.P. and the Town of Fountain Hills. REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 3 of 4 REGULAR AGENDA 4.) CONSIDERATION of APPOINTING FOUR (4) CITIZENS to serve on the Planning and Zoning Commission with each serving a 2-year term, beginning October 1, 2008, and ending September 30, 2010. 5.) CONSIDERATION of APPOINTING ONE (1) CITIZEN to serve on the Municipal Property Corporation Board for a 3-year term, beginning October 1, 2008, and ending September 30, 2011. 6.) INFORMATIONAL PRESENTATION by the Fountain Hills Town Square, LLC, regarding a 459,603 square foot mixed-use TOWN CENTER DEVELOPMENT PROPOSAL. 7.) CONSIDERATION of a SPECIAL EVENT APPLICATION for the Fantastic Fall Festival sponsored by the Town of Fountain Hills to be held at Four Peaks Park, which is scheduled for October 31, 2008, from 6:00 p.m. – 9:00 p.m. 8.) CONSIDERATION of a SPECIAL EVENT APPLICATION for the Fountain Hills High School Athletic Club Homecoming Parade sponsored by the Fountain Hills High School Athletic Booster Club to be held on the Avenue of the Fountains, which is scheduled for October 2, 2008, from 6:00 p.m. to 7:00 p.m. and will require closure of the Avenue of the Fountains from Saguaro Boulevard. to La Montana Drive from 5:30 p.m. to 7:30 p.m. 9.) DISCUSSION WITH POSSIBLE DIRECTION TO STAFF with regard to changing the date of the October 2, 2008, Town Council meeting to October 1, 2008, due to the date and timing of the Fountain Hills High School Athletic Club Homecoming Parade. 10.) CONSIDERATION of TWO CONSTRUCTION SERVICE AGREEMENTS, with Carume Contracting, Inc. in the amount of $41,660.27, and Performance Paving & Sealing in the amount of $10,889.93, for the Fountain Hills Desert Botanical Garden Parking Improvements. 11.) DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding adopting regulations and fees for OFF-TRACK BETTING in Fountain Hills. [Bruno’s Sports Bar at 16737 E. Parkview Avenue, Fountain Hills, AZ] 12.) CONSIDERATION of a PROFESSIONAL SERVICES AGREEMENT between the Town of Fountain Hills and Albert Holler and Associates for a 3-year period beginning July 1, 2008, for sales tax auditing services in the amount of $42,000 per year. 13.) CONSIDERATION of an OPEN PURCHASE ORDER to Union Distributing in the amount of $116,813 for bulk fuel purchase of unleaded and diesel fuel through the Arizona State Contract for Fiscal Year 2008-09. 14.) CONSIDERATION of a PROJECT AGREEMENT with the Maricopa County Association of Governments (MAG) to reimburse the Town of Fountain Hills up to $288,228 for engineering fees to design the Shea Boulevard Climbing Lane Project during Fiscal Year 2008-09. 15.) CONSIDERATION of ALLOCATING a sum of up to $20,000 for use by the Strategic Planning Advisory Commission (SPAC) to take the necessary steps to update the Town of Fountain Hills’ Strategic Plan with POSSIBLE DIRECTION by Council to SPAC regarding the Strategic Plan update process. REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 3 of 4 16.) COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. None. 17.) SUMMARY of COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Town Manager. 18.) ADJOURNMENT DATED this 12th day of September 2008 Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (voice) or 1-800-367- 8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this 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. REVISED NOTICE OF EXECUTIVE AND REGULAR SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:00 P.M. - EXECUTIVE SESSION (Executive Session will be held in the Fountain Conference Room - 2nd floor) 6:30 P.M. - REGULAR SESSION WHEN: THURSDAY, SEPTEMBER 18, 2008 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ PROCEDURE FOR ADDRESSING THE COUNCIL Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber Lobby and near the Clerk’s position on the dais. Speakers will be called in the order in which the speaker cards were received either by the Clerk or the Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their name prior to commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting. Please be respectful when making your comments. If you do not comply with these rules, you will be asked to leave. Mayor Jay T. Schlum Councilmember Mike Archambault Councilmember Cassie Hansen Councilmember Dennis Contino Vice Mayor Henry Leger Councilmember Ginny Dickey Councilmember Keith McMahan REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 2 of 4 CALL TO ORDER –Mayor Schlum 1.) ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to §38- 431.03(A)(4), for discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body’s position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation (Specifically, (i) an update regarding all pending litigation matters, and (ii) a possible downtown development agreement). 2.) RETURN TO REGULAR SESSION CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Jay Schlum INVOCATION – Leann Gratz, representing the Church of the Ascension ROLL CALL – Mayor Jay Schlum MAYOR’S REPORT (i) None. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) Presentation by Sharon Morgan, President of the Fountain Hills Sister Cities organization and participating Fountain Hills students, regarding their activities during the June 2008, Dierdorf, Germany student exchange trip. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), 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. CONSENT AGENDA 1.) CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from August 25, 2008, and September 4, 2008. 2.) CONSIDERATION for approving RESOLUTION 2008-34, abandoning whatever right, title, or interest the Town has in the certain public utility and drainage easements located at the northerly property line of Plat 431, Block 7, Lot 2 (17518 E. Hawley Drive) as recorded in Book 395, Page 41, Records of Maricopa County, Arizona. EA08-08 (Honjo) 3.) CONSIDERATION of approving the SECOND AMENDMENT to the Hiking License Agreement between MCO Properties L.P. and the Town of Fountain Hills. REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 3 of 4 REGULAR AGENDA 4.) CONSIDERATION of APPOINTING FOUR (4) CITIZENS to serve on the Planning and Zoning Commission with each serving a 2-year term, beginning October 1, 2008, and ending September 30, 2010. 5.) CONSIDERATION of APPOINTING ONE (1) CITIZEN to serve on the Municipal Property Corporation Board for a 3-year term, beginning October 1, 2008, and ending September 30, 2011. 6.) INFORMATIONAL PRESENTATION by the Fountain Hills Town Square, LLC, regarding a 459,603 square foot mixed-use TOWN CENTER DEVELOPMENT PROPOSAL. 7.) CONSIDERATION of a SPECIAL EVENT APPLICATION for the Fantastic Fall Festival sponsored by the Town of Fountain Hills to be held at Four Peaks Park, which is scheduled for October 31, 2008, from 6:00 p.m. – 9:00 p.m. 8.) CONSIDERATION of a SPECIAL EVENT APPLICATION for the Fountain Hills High School Athletic Club Homecoming Parade sponsored by the Fountain Hills High School Athletic Booster Club to be held on the Avenue of the Fountains, which is scheduled for October 2, 2008, from 6:00 p.m. to 7:00 p.m. and will require closure of the Avenue of the Fountains from Saguaro Boulevard. to La Montana Drive from 5:30 p.m. to 7:30 p.m. 9.) DISCUSSION WITH POSSIBLE DIRECTION TO STAFF with regard to changing the date of the October 2, 2008, Town Council meeting to October 1, 2008, due to the date and timing of the Fountain Hills High School Athletic Club Homecoming Parade. 10.) CONSIDERATION of TWO CONSTRUCTION SERVICE AGREEMENTS, with Carume Contracting, Inc. in the amount of $41,660.27, and Performance Paving & Sealing in the amount of $10,889.93, for the Fountain Hills Desert Botanical Garden Parking Improvements. 11.) DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding adopting regulations and fees for OFF-TRACK BETTING in Fountain Hills. [Bruno’s Sports Bar at 16737 E. Parkview Avenue, Fountain Hills, AZ] 12.) CONSIDERATION of a PROFESSIONAL SERVICES AGREEMENT between the Town of Fountain Hills and Albert Holler and Associates for a 3-year period beginning July 1, 2008, for sales tax auditing services in the amount of $42,000 per year. 13.) CONSIDERATION of an OPEN PURCHASE ORDER to Union Distributing in the amount of $116,813 for bulk fuel purchase of unleaded and diesel fuel through the Arizona State Contract for Fiscal Year 2008-09. 14.) CONSIDERATION of a PROJECT AGREEMENT with the Maricopa County Association of Governments (MAG) to reimburse the Town of Fountain Hills up to $288,228 for engineering fees to design the Shea Boulevard Climbing Lane Project during Fiscal Year 2008-09. 15.) CONSIDERATION of ALLOCATING a sum of up to $20,000 for use by the Strategic Planning Advisory Commission (SPAC) to take the necessary steps to update the Town of Fountain Hills’ Strategic Plan with POSSIBLE DIRECTION by Council to SPAC regarding the Strategic Plan update process. REVISED Z:\Council Packets\2008\R9-18-08\Agenda 9-18-08 revised.doc Last printed 9/16/2008 11:24 AM Page 3 of 4 16.) COUNCIL DISCUSSION/DIRECTION to the Town Manager. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. None. 17.) SUMMARY of COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the Town Manager. 18.) ADJOURNMENT DATED this 12th day of September 2008 Bevelyn J. Bender, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 837-2003 (voice) or 1-800-367- 8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this 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. Our Trip to…Dierdorf! The Town The People The Many Other Places We VisitedKoblenz The Many Other Places We VisitedLimburg The Many Other Places We VisitedCologne The Many Other Places We VisitedMarksburg The Many Other Places We VisitedRothenburg Ob Der Tauber Fountain Hills Town Square A Town Center Mixed-use Development Project Fountain Hills Town Square, LLC •Development Partners –Kasnoff Realty & Investments –Nielsen-Fackler Planning & Development –The Private Consulting Group •Project Architects –RSP Architects, Tempe, AZ •Project Builder –McGough Construction, Phoenix, AZ Building Square Footage •Restaurant / Retail 161,571 SF •Theater Multi-Plex 45,000 SF •Office 56,610 SF •Residential (127 Units)199,422 SF Total Square Footage 459,603 SF Shared Parking Total Parking Required 1,528 spaces Total Parking Provided 1,541 spaces Phase 1 •Building / Use Sq. Ft. •B –3-Story –Retail/Office 24,407 SF •C –3-Story –Retail/Office 47,519 SF •N –1-Story –Retail 4,750 SF •M –1-Story –Retail 4,750 SF •Q –3-Story –Theater 45,000 SF Phase 1 Total 126,426 SF Shared Parking •Parking Required -770 spaces •Parking Provided –863 spaces TOWN OF FOUNTAIN HILLS PARKS & RECREATION DEPARTMENT INTER OFFICE MEMO TO: Mayor Schlum and Town Council DATE: September 10, 2008 FR: Bryan Hughes, Recreation Supervisor RE: October Special Events The Recreation Division Staff is excited to bring to the Town Council for your consideration two special events for the month of October 2008. These events are being offered as the Town works towards the Town of Fountain Hills Strategic Priority to “strengthen small town identity” and the Town Council’s goal “to increase community initiatives to strengthen our small town character.” One objective of that goal is “to coordinate or facilitate with community partners the expansion or creation of up to four events that would grow to 2,000 or more participants over two years, by June 30, 2009.” Additionally, the Homecoming Parade meets another strategic focus area included in the Town of Fountain Hills Strategic Priority to “integrate the Town and the schools more closely” and “support and promote Falcon Pride.” List of Events 1. Fountain Hills H.S. Homecoming Parade – Thursday, October 2nd at 6:00 p.m. on the Avenue of the Fountains 2. Fantastic Fall Festival – Friday, October 31st from 6:00-9:00 p.m. at Four Peaks Park Summary of Events 1. Homecoming Parade – This will be the first Homecoming Parade in the history of the Town of Fountain Hills and the Fountain Hills High School. 2. Fantastic Fall Festival – This is the 6th Annual Fantastic Fall Festival at Four Peaks Park. The festival provides a safer alternative to traditional trick or treating for the families of Fountain Hills on Halloween evening. There are numerous activities, games and booths, inflatable bouncers, and of course, lots of candy. The festival is a partnership between Parks and Recreation, local churches, community organizations, the Boys and Girls Club, Fire Department and MCSO. Fiscal Impact 1. Fountain Hills H.S. Homecoming Parade – Funding was not included in the FY 08-09 budget; however the Town will be providing in-kind support through staff support, traffic control and street closures. 2. Fantastic Fall Festival – $4,225 approved in FY 08-09 in Parks and Recreation Community Events and Programs. Traffic Restrictions 1. Homecoming Parade, October 2nd – Avenue of the Fountains closed from Saguaro Blvd. to La Montana Dr. from 5:30-7:30 p.m.; staging for the parade will take place on Paul Nordin Parkway/Verde River Dr. 2. Fantastic Fall Festival, October 31st – No restrictions, although there will be increased traffic and on-street parking in the neighborhood surrounding Four Peaks Park. Town Center Approval of the Special Event application for the Homecoming Parade will allow merchants in the newly organized Town Center to be permitted to hold sidewalk sales on Thursday, October 2nd and Friday, October 3rd in conjunction with Homecoming activities. The merchants of Town Center will also be permitted to decorate the windows of their respective businesses with homecoming related artwork or signage showing their community spirit from Sunday, September 28th to Saturday, October 4th. Window artwork and decorations are being coordinated by the High School Art Department with the merchants of Town Center. Although not part of the Fantastic Fall Festival application, merchants of Town Center will again be encouraging residents and visitors to visit their businesses on Friday, October 31st for trick or treating and other Halloween activities. Traffic Control and Event Security MCSO will be providing Sherriff’s Deputies and Posse for traffic control where necessary at the Homecoming Parade and provide event security at the Fantastic Fall Festival. Recommendations Staff recommends approval of both Special Event Applications. TOWN OF FOUNTAIN HILLS PARKS & RECREATION DEPARTMENT INTER OFFICE MEMO TO: Mayor Schlum and Town Council DATE: September 10, 2008 FR: Bryan Hughes, Recreation Supervisor RE: October Special Events The Recreation Division Staff is excited to bring to the Town Council for your consideration two special events for the month of October 2008. These events are being offered as the Town works towards the Town of Fountain Hills Strategic Priority to “strengthen small town identity” and the Town Council’s goal “to increase community initiatives to strengthen our small town character.” One objective of that goal is “to coordinate or facilitate with community partners the expansion or creation of up to four events that would grow to 2,000 or more participants over two years, by June 30, 2009.” Additionally, the Homecoming Parade meets another strategic focus area included in the Town of Fountain Hills Strategic Priority to “integrate the Town and the schools more closely” and “support and promote Falcon Pride.” List of Events 1. Fountain Hills H.S. Homecoming Parade – Thursday, October 2nd at 6:00 p.m. on the Avenue of the Fountains 2. Fantastic Fall Festival – Friday, October 31st from 6:00-9:00 p.m. at Four Peaks Park Summary of Events 1. Homecoming Parade – This will be the first Homecoming Parade in the history of the Town of Fountain Hills and the Fountain Hills High School. 2. Fantastic Fall Festival – This is the 6th Annual Fantastic Fall Festival at Four Peaks Park. The festival provides a safer alternative to traditional trick or treating for the families of Fountain Hills on Halloween evening. There are numerous activities, games and booths, inflatable bouncers, and of course, lots of candy. The festival is a partnership between Parks and Recreation, local churches, community organizations, the Boys and Girls Club, Fire Department and MCSO. Fiscal Impact 1. Fountain Hills H.S. Homecoming Parade – Funding was not included in the FY 08-09 budget; however the Town will be providing in-kind support through staff support, traffic control and street closures. 2. Fantastic Fall Festival – $4,225 approved in FY 08-09 in Parks and Recreation Community Events and Programs. Traffic Restrictions 1. Homecoming Parade, October 2nd – Avenue of the Fountains closed from Saguaro Blvd. to La Montana Dr. from 5:30-7:30 p.m.; staging for the parade will take place on Paul Nordin Parkway/Verde River Dr. 2. Fantastic Fall Festival, October 31st – No restrictions, although there will be increased traffic and on-street parking in the neighborhood surrounding Four Peaks Park. Town Center Approval of the Special Event application for the Homecoming Parade will allow merchants in the newly organized Town Center to be permitted to hold sidewalk sales on Thursday, October 2nd and Friday, October 3rd in conjunction with Homecoming activities. The merchants of Town Center will also be permitted to decorate the windows of their respective businesses with homecoming related artwork or signage showing their community spirit from Sunday, September 28th to Saturday, October 4th. Window artwork and decorations are being coordinated by the High School Art Department with the merchants of Town Center. Although not part of the Fantastic Fall Festival application, merchants of Town Center will again be encouraging residents and visitors to visit their businesses on Friday, October 31st for trick or treating and other Halloween activities. Traffic Control and Event Security MCSO will be providing Sherriff’s Deputies and Posse for traffic control where necessary at the Homecoming Parade and provide event security at the Fantastic Fall Festival. Recommendations Staff recommends approval of both Special Event Applications. 898436.1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ALBERT HOLLER D/B/A ALBERT HOLLER & ASSOCIATES THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is made as of September 18, 2008, between the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation (the “Town”) and Albert Holler d/b/a Albert Holler & Associates (the “Contractor”). RECITALS A. The Contractor possesses the skill and experience required to complete the auditing services (the “Services”). B. The Town desires to enter into an Agreement with the Contractor for the Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, and the following mutual covenants and conditions, the Town and the Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of July 1, 2008 and shall remain in full force and effect until June 30, 2011. 2. Scope of Work. Contractor shall provide the Services as set forth in the Scope of Work, attached hereto as Exhibit A and incorporated herein by reference. 3. Compensation. The Town shall pay Contractor a price not to exceed $42,000.00 annually for the Services as set forth in Exhibit A. 4. Payments. The Town shall pay the Contractor $3,500 on a monthly basis. 5. Ownership of Documents. All documents prepared and submitted to the Town by the Contractor pursuant to this Agreement shall be the property of the Town. 6. Contractor Personnel. Contractor shall provide adequate, experienced personnel, capable of and devoted to the successful completion of the Services to be performed under this Agreement. Contractor agrees to assign specific individuals to key positions. Contractor 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, Contractor shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel of substantially equal ability and qualifications. 898436.1 2 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Contractor’s performance. The Contractor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Contractor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Contractor. The Town has no obligation to provide Contractor, 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 Contractor. 9. Performance Warranty. Contractor warrants that the Services rendered will conform to the requirements of this Agreement and to the highest professional standards in the field. 10. Indemnification. To the fullest extent permitted by law, 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. 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 Contractor, Contractor shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies duly licensed by the State of Arizona 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 Contractor. 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 Contractor 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. 898436.1 3 c. Additional Insured. All insurance coverage and self-insured retention or deductible portions, 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. Contractor’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. 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 Contractor. Contractor shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. g. 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. Contractor shall be solely responsible for any such deductible or self-insured retention amount. h. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Contractor shall execute written agreement with Subcontractor containing the indemnification provisions set forth in this Section and insurance requirements set forth herein protecting the Town and Contractor. Contractor shall be responsible for executing the agreement with Subcontractor and obtaining certificates of insurance verifying the insurance requirements. i. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Contractor 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 Contractor’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 898436.1 4 of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. In the event any insurance policy required by this Agreement is written on a “claims made” basis, coverage shall extend for two years past completion of the Services and the Town’s acceptance of the Contractor’s work or services and as evidenced by annual certificates of insurance. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Contractor’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 RFQ number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFQ 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 a contract number 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) Contractor’s insurance shall be primary insurance as respects performance of the 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 Contractor under this Agreement. (4) A 30-day advance notice cancellation provision. If ACORD certificate of insurance form 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. 898436.1 5 11.2 Required Insurance Coverage. a. Commercial General Liability. Contractor 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. Contractor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Contractor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Contractor’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 Contractor engages in any professional services or work adjunct or residual to performing the work under this Agreement, the Contractor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Contractor, or anyone employed by the Contractor, or anyone for whose negligent acts, mistakes, errors and omissions the Contractor is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 all claims. In the event the Professional Liability insurance policy is written on a “claims made” basis, coverage shall extend for three years past completion and acceptance of the Services, and the Contractor shall be required to submit certificates of insurance evidencing proper coverage is in effect as required above. d. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state 898436.1 6 statutes having jurisdiction of Contractor’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 materially changed without 30 days prior written notice to the Town. 12. Applicable Law; Venue. In the performance of this Agreement, Contractor shall abide by and conform to any and all laws of the United States, State of Arizona and Town of Fountain Hills, including but not limited to, federal and state executive orders providing for equal employment and procurement opportunities, the Federal Occupational Safety and Health Act and any other federal or state laws applicable to this Agreement. 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 the State of Arizona. 13. Termination; Cancellation. 13.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Contractor of written notice by the Town. Upon termination for convenience, Contractor shall be paid for all undisputed services performed to the termination date. 13.2 For Cause. This Agreement may be terminated by either party upon 30 days’ written notice should the other party fail to substantially perform in accordance with this Agreement’s terms, through no fault of the party initiating the termination. In the event of such termination for cause, payment shall be made by the Town to the Contractor for the undisputed portion of its fee due as of the termination date. 13.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Contractor 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 Contractor for the undisputed portion of its fee due as of the termination date. 13.4 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 the Agreement or any extension of the Agreement is in effect, an employee of any other party to the Agreement in any capacity or a Contractor to any other party of the Agreement with respect to the subject matter of the Agreement. 13.5 Gratuities. The Town may, by written notice to the Contractor, 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 Contractor or any agent or representative of the Contractor to any officer, agent or employee of the Town for the 898436.1 7 purpose of securing this Agreement. In the event this Agreement is cancelled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover or withhold from the Contractor an amount equal to 150% of the gratuity. 14. Miscellaneous. 14.1 Independent Contractor. The Contractor 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. Contractor, 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 Contractor, its employees or subcontractors. The Contractor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Contractor meets the requirements of its agreed scope of work as set forth in Section 2 above. Contractor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Contractor do not intend to nor will they combine business operations under this Agreement. 14.2 Laws and Regulations. The Contractor 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 Contractor is responsible remains in compliance with all rules, regulations, ordinances, statutes or laws affecting the Services, including 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 (“OSHA”) standards. 14.3 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 Contractor. 14.4 Provisions Required by Law. Each and every provision of law and any clause required by law to be in the 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, the Agreement will promptly be physically amended to make such insertion or correction. 14.5 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 the Agreement which may remain in effect without the invalid provision or application. 14.6 Relationship of the Parties. 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 Contractor is advised that taxes or Social Security payments will not be withheld from any Town payments issued hereunder and Contractor agrees to be fully and solely responsible for the payment of such taxes or any other tax applicable to this Agreement. 898436.1 8 14.7 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 the 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. 14.8 Assignment. No right or interest in this Agreement shall be assigned by Contractor without prior, written permission of the Town signed by the Town Manager and no delegation of any duty of Contractor shall be made without prior, written permission of the Town signed by the Town Manager. Any attempted assignment or delegation by Contractor in violation of this provision shall be a breach of this Agreement by Contractor. 14.9 Subcontracts. No subcontract shall be entered into by the Contractor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Contractor is responsible for performance under this Agreement whether or not subcontractors are used. 14.10 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 Contractor 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. 14.11 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. 14.12 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. 14.13 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 Contractor any amounts Contractor 898436.1 9 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 Contractor any amounts Contractor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 14.14 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, (c) given to a recognized and reputable overnight delivery service, to the address set forth below or (d) delivered by facsimile transmission to the number set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Facsimile: 480-837-3145 Attn: Richard L. Davis, Town Manager With copy to: GUST ROSENFELD, P.L.C. 201 East Washington, Suite 800 Phoenix, Arizona 85004-2327 Facsimile: 602-340-1538 Attn: Andrew J. McGuire, Esq. If to Contractor: Albert Holler & Associates 4607 East Collinwood Drive Gilbert, Arizona 85298-4013 Facsimile: 480-705-0341 Attn: Albert Holler, Owner 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 Section. 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, (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, or (d) when received by facsimile transmission during the normal business hours of the recipient. 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. 14.15 Confidentiality of Records. The Contractor 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 898436.1 10 obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Contractor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to employees, agents or officers of Contractor as needed for the performance of duties under this Agreement. 14.16 Records and Audit Rights. Contractor’s and Subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Contract, including the papers of any Contractor and Subcontractor employee who works on the Contract to ensure that the Contractor and its Subcontractor are complying with the warranty under Section 14.17 below (all 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 (1) evaluation and verification of any invoices, payments or claims based on Contractor’s and its Subcontractor’s actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Contract and (2) evaluation of the Contractor’s and its Subcontractor’s compliance with the Arizona employer sanctions laws referenced in Section 14.17 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 from the effective date of this Contract for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Contract. The Town shall have access, during normal working hours, to all necessary Contractor and Subcontractor facilities, and shall be provided adequate and appropriate workspace, in order to conduct audits in compliance with the provisions of this subsection. The Town shall give Contractor or Subcontractor reasonable advance notice of intended audits. Contractor shall require its Subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Contract. 14.17 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 compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its Subcontractor’s failure to comply with such warranty shall be deemed a material breach of this Contract and may result in the termination of this Contract by the Town. 14.18 Conflicting Terms. In the event of a conflict between the Scope of Work and this Agreement, the terms of this Agreement shall govern. 14.19 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. 898436.1 11 IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the date and year first set forth above. “Town” “Contractor” TOWN OF FOUNTAIN HILLS, an Arizona ALBERT HOLLER D/B/A ALBERT municipal corporation HOLLER & ASSOCIATES, By: Richard L. Davis, Town Manager ATTEST: Name: Its: Bevelyn J. Bender, Town Clerk 898436.1 12 (ACKNOWLEDGEMENTS) STATE OF ARIZONA ) ) ss. COUNTY OF MARICOPA ) This instrument was acknowledged before me on , 2008, by Richard L. Davis, the Town Manager of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, on behalf of the Town of Fountain Hills. Notary Public in and for the State of Arizona My Commission Expires: STATE OF ARIZONA ) ) ss. COUNTY OF MARICOPA ) This instrument was acknowledged before me on , 2008, by ________________________ as of ALBERT HOLLER D/B/A ALBERT HOLLER & ASSOCIATES. Notary Public in and for the State of Arizona My Commission Expires: 898436.1 EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ALBERT HOLLER D/B/A ALBERT HOLLER & ASSOCIATES [Scope of Work] See following page. 898436.1 SCOPE OF WORK Description of Services. Beginning on July 1, 2008, Contractor will provide the following services: • Select and complete sales and use tax audits from construction and retail activity recovering a minimum of $42,000 per fiscal year (annual cost of contract). • Expand services to include a general canvass and audit of residential rental properties within the Town, comparing Maricopa County registered rental properties with rental revenue; and canvassing a minimum of 30% of known rental properties. In addition, identify those properties that may not be registered with Maricopa County as a rental but identified by a neighbor as possibly being used as a rental property. • Provide taxpayer assistance as requested. • Provide monthly reports on the results showing the breakdown by construction sales tax, number of residential rental taxpayers contacted and residential tax assessments. Expense Reimbursement. Contractor shall be entitled to reimbursement from Town for the following “out-of-pocket” expenses: out-of-state travel provided that it is pre-authorized by the Town Finance Director. Support Services. Town will provide the following support services for the benefit of the Contractor: office space, mail, and photocopying. SALES TAX AUDIT COLLECTIONSFY97 through FY08$254K$1.2M FUEL COST COMPARISONFiscal YearUnleaded GallonsDieselGallonsTotal Fuel CostFY08‐09 estimate15,00017,495$116,813FY07‐0816,45517,495$106,976FY06‐0717,61915,692$  85,477Fiscal YearUnleaded FuelDiesel FuelLocal Gas Station 9/2008$3.62$3.99Bulk Fuel Cost 9/2008$3.41$3.55FY08‐09 estimate$3.50$3.80FY07‐08$2.91$3.38FY06‐07$2.52$2.62AVERAGE COST PER GALLON Page 3 of 7 2. The Town of Fountain Hill’s Responsibility. The Town of Fountain Hills agrees to: a. Be responsible for all project costs and submit invoices to MAG for reimbursement. The Town of Fountain Hills will: 1) be responsible for the completion of all surveys, design, plans and specifications, including contractor selection documents; 2) conduct contractor selection process(es), award contract(s) for construction pursuant to the applicable laws, and provide necessary construction management and inspections, unless noted otherwise in an IGA; 3) if necessary, purchase or condemn right of way required for the completion of the Project, unless otherwise provided in an IGA; 4) be responsible for all utility relocations, and 5) review and approve invoices from its contractors and subcontractors before submitting an invoice to MAG; b. Abide by the December 19, 2007 Policies and Procedures throughout the completion of the Project. c. Obtain appropriate indemnifications and insurance from all contractors and subcontractors involved in the Project; d. Be responsible for all Project costs in excess of the maximum amount of the regional funds allocated for the Project in the amount of $288,228 (Allocated Regional Funds). The amount of funds to be paid to the Town of Fountain Hills, pursuant to this Agreement will not exceed the Allocated Regional Funds. The ALCP is expressed in 2008 dollar amounts, which will be adjusted annually for inflation pursuant to the procedure set forth in the Policies and Procedures; e. Provide invoices and progress reports to MAG pursuant to the project schedule provided in the Project Overview as may be amended from time to time, the most current version of which is on file and available for inspection and review with MAG; and f. Otherwise comply with all requirements of this Agreement. g. The Town of Fountain Hills’s authorized representative to sign, approve and submit invoices to MAG is Richard L. Davis, Town Manager or his designee. C. Records and Audit Rights. The Town of Fountain Hills’s work and accounting records (hard copy, as well as computer readable data), and any other supporting evidence deemed necessary by MAG to substantiate charges and claims related to this Agreement shall be open to inspection and subject to audit and/or reproduction by authorized representatives of MAG, the Arizona Department of Transportation and the Auditor General of the State of Arizona ("Auditors"), as applicable to the extent necessary to adequately permit evaluation and verification of the performance and cost of the work, and to conduct and prepare all audits and reports required by law. Auditors shall be afforded access, at reasonable times and places, to all of Town of Fountain Hills’s records and personnel, pursuant to the provisions of this Section, throughout the term of this Agreement, and for a period of five (5) years after last or final payment.