First Amendment to Intergovernmental Agreement

City of Chandler — Study Session (2023-09-18)

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FIRST AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE 
CITY OF CHANDLER AND THE ARIZONA DEPARTMENT OF REVENUE FOR 
DISTRIBUTION OF REVENUES UNDER A.R.S. § 42-5032.02 
This FIRST AMENDMENT is made and entered into by and between the ARIZONA 
DEPARTMENT OF REVENUE (the “Department”) and the CITY OF CHANDLER (“City”) (collectively, 
the “Parties”), effective this ______ day of ____________, 2023. 
RECITALS 
WHEREAS, the Parties entered into an Intergovernmental Agreement on July 12, 2019, for the 
purpose of facilitating the City to obtain, and the Department to distribute, funding for the cost of Public 
Infrastructure Improvement Projects pursuant to Arizona Revised Statutes (“A.R.S.”) § 42-5032.02 (the 
“IGA”); and 
WHEREAS, the IGA, on account of restrictions then set forth under A.R.S. § 42-5032.02, limited 
said funding to a maximum of $50,000,000 and set the term of the IGA and duration of when payments 
may be made to the City as due to expire on September 30, 2023; and 
WHEREAS, the Arizona Legislature has since amended A.R.S. § 42-5032.02 to increase the 
statutory maximum for funding of Public Infrastructure Improvement Projects and extend the time period 
in which the Department may make payments in accordance with A.R.S. § 42-5032.02; and 
WHEREAS, since the execution of the IGA, the Department has established a uniform method for 
the distribution of payments to all cities, towns, and counties under A.R.S. § 42-5032.02 that was not 
captured within the provisions of the IGA; and 
WHEREAS, the Parties wish to amend the IGA to incorporate these changes, update outdated 
references contained within, and extend its duration. 
AGREEMENT 
NOW THEREFORE, in consideration of the mutual promises of the Parties, the receipt and 
sufficiency of which is hereby acknowledged, the Parties hereby agree to amend the IGA by the following 
additions (indicated by underlining) and deletions (indicated by strikethroughs): 
A. Section 1.11 is amended to read as follows:
1.11 
“Statutory Maximum” means the total not-to-exceed amount to be paid to 
all cities, towns, and counties under A.R.S. § 42-5032.02, which shall not exceed a 
maximum of Fifty Million Dollars ($50,000,000). 
B. Section 4.3 is amended to read as follows:
4.3 
Revenue derived from contracts subject to A.R.S. § 42-5075 for Public 
Infrastructure Improvement Projects under this Agreement shall be used exclusively to pay 
for Public Infrastructure Improvement Projects identified under this Agreement until either 
(a) the Statutory Maximum for payments to all cities, towns and counties under A.R.S. §

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42-5032.02, which as of the date of this Agreement is Fifty Million Dollars ($50,000,000),
is reached, or (b) September 30, 2023 2033 or such later date as amended in A.R.S. § 42-
5032.02.
C. Section 5.5 is amended to read as follows:
5.5 
The total amount paid to City for any Public Infrastructure Project under 
this Agreement shall not (a) exceed eighty percent (80%) of the total cost of the Public 
Infrastructure Improvement Project as set forth in Addendum B, or (b) exceed the Statutory 
Maximum for payments to all cities, towns and counties under A.R.S. § 42-5032.02, which 
as of the date of this Agreement is Fifty Million Dollars ($50,000,000). If the amount 
needed to meet eighty percent (80%) of the Public Infrastructure Improvement Project 
would exceed the Statutory Maximum, such amount shall be funded by Intel. In no event 
shall payments be made to City under this Agreement from and after September 30, 2023 
2033 or such later date as amended in A.R.S. § 42-5032.02. 
D. Section 5.8 is amended to read as follows:
5.8 
City will promptly notify the Department if monies received under this 
Agreement exceed eighty percent (80%) of the cost of any Public Infrastructure 
Improvement Project and will return the amount of the excess to the State treasurer 
Treasurer for deposit in the State general fund according to A.R.S. § 42-5032.02(G)(4) or 
successor provision. 
E. Section 5.9 is amended to read as follows:
5.9 
The Department shall notify the State Treasurer to cease payments under 
this Agreement when either (a) the total for all payments to City meet or exceed eighty 
percent (80%) of the cost of the Public Infrastructure Improvements under this Agreement, 
or (b) payments to all cities, towns and counties under A.R.S. § 42-5032.02 have reached 
the Statutory Maximum, which as of the date of this Agreement is Fifty Million Dollars 
($50,000,000). City agrees that it has no claims to additional payments under these 
conditions. 
F.
Between Sections 5.9 and 6, the following language is inserted:
5.10 
The Department shall distribute and City shall receive funding payments 
for eligible Public Infrastructure Improvement Project costs rendered after City 
substantiates to the Department the cost has been expended, is allowable, and is relevant 
for the submitted program expenditures. To request reimbursement, City shall submit its 
request to the Department for review and processing in a form and manner agreed upon by 
both City and the Department. Unless otherwise specifically indicated, City as a funding 
recipient is not required to submit any supporting documentation with a reimbursement 
request. However, City is required to maintain all necessary supporting documentation to 
ensure such documentation is available to the Department for review, upon request. City 
must maintain records that show: (a) the total amount of funds received under this 
Agreement; (b) how City used the funds; (c) the total cost of the projects; and other records

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to facilitate an effective audit. Allowable costs are those eligible Public Infrastructure 
Improvement Project costs invoiced to City on or after the month of the effective date of 
this Agreement, as substantiated by supporting documentation. 
5.11 
The Department will process reimbursement requests under A.R.S. § 42-
5032.02 on a first-come, first-served basis, so it is important for City to submit payment 
requests as early as possible. City may request updates on the remaining amounts available 
under A.R.S. § 42-5032.02 from time to time. 
G. Section 9 is amended to read as follows:
9.
Effective Date and Duration.  This Agreement shall become effective
upon execution by City and the Department, and shall remain in effect until (1) the 
Statutory Maximum has been reached, or (2) September 30, 2023 2033 or such later date 
as amended in A.R.S. § 42-5032.02, whichever first occurs. 
H. Section 13, paragraph B is amended to read as follows:
B 
To the Department: 
Grant Nülle 
Deputy Director 
1600 W. Monroe St. 
Phoenix, Arizona 85007 
with a copy to: 
Frank Boucek 
General Counsel 
1600 W. Monroe St. 
Phoenix, Arizona 85007 
I.
Section 14 is struck in its entirety and replaced with the following:
14. Non-discrimination.  The Department and City shall comply with Executive
Order 2023-01, which prohibits discrimination based on race, color, sex, pregnancy, 
childbirth or medical conditions related to pregnancy or childbirth, political or religious 
affiliation or ideas, culture, creed, social origin or condition, genetic information, sexual 
orientation, gender identity or expression, national origin, ancestry, age, disability, military 
service or veteran status, or marital status, by persons performing state contracts or 
subcontracts. The Department and City also agree to comply with Executive Orders 2003-
22 and 2009-09 as amended by Executive Order 2023-01, and all other applicable State 
and Federal employment laws, rules, and regulations, including the Americans with 
Disabilities Act of 1990. 
All other terms and conditions of the IGA shall remain unchanged and in full force and effect.

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IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed as authorized by 
the laws of the State of Arizona.  
CITY OF CHANDLER 
ARIZONA DEPARTMENT OF REVENUE 
By: 
By:
Signature 
Signature 
Name and title: Kevin Hartke, Mayor 
Name and title: Robert Woods, Director 
Date signed: 
Date signed: 
ATTEST: 
By:
City Clerk

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APPROVAL OF THE CHANDLER CITY ATTORNEY 
Pursuant to Arizona Revised Statutes § 11-951 through § 11-954, I have reviewed the foregoing 
First Amendment to Intergovernmental Agreement between the ARIZONA DEPARTMENT OF 
REVENUE and the CITY OF CHANDLER, and declare this Agreement to be in proper form and within 
the powers and authority granted to the City under the laws of the State of Arizona. 
No opinion is expressed as to the authority of the State to enter into this Agreement. 
DATED this _____________ day of _____________________, 2023. 
By: 
Signature 
Name and title:Kelly Y. Schwab, City Attorney

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APPROVAL OF THE ARIZONA ATTORNEY GENERAL 
Pursuant to Arizona Revised Statutes § 11-951 through § 11-954, I have reviewed the foregoing 
First Amendment to Intergovernmental Agreement between the ARIZONA DEPARTMENT OF 
REVENUE and the CITY OF CHANDLER, and declare this Agreement to be in proper form and within 
the powers and authority granted to the Department under the laws of the State of Arizona. 
No opinion is expressed as to the authority of the State to enter into this Agreement. 
DATED this _____________ day of _____________________, 2023. 
KRISTIN K. MAYES 
Arizona Attorney General 
By:
Signature 
Name and title:Jerry Fries, Tax Section Chief Counsel