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HomeMy WebLinkAbout04/28/1998 Study Session MinutesPLACE AND DATE Marana Police Department, April 28, 1998 CALL TO ORDER By Mayor Ora Harn at 6:06 P.M. II. PLEDGE OF ALLEGIANCE Led by Mayor Ora Harn IlL ROLL CALL COUNCIL Ora Ham Bobby Sutton, Jr. Ed Honea Herb Kal Sherry Millner Michael Reuwsaat Roxanne Ziegler Mayor Vice Mayor Council Member Council Member Council Member Council Member Council Member, excused late STAFF Hurvie Davis Michael Hein Jocelyn Entz Sandy Groseclose Roy Cuamn Brad DeSpain Joel Svoboda Jerry Flannery Joel Shapiro Russ Dillow Ann Meadem Lisa Segars Town Manager Assistant Town Manager Asst. to Town Manager Town Clerk Finance Director Utilities Director Chief Building Official Planning Director/Annexing Principal Planner/Annexing Magistrate Water Administrative Manager Administrative Secretary IV. APPROVAL OF AGENDA A motion was made by Vice Mayor Sutton seconded by Ed Honea, to approve the agenda, as written. The motion carried 6/0. GENERAL ORDER OF BUSINESS A. Review and Discussion - FY 1998-99 Departmental Budget Requests Hurvie Davis: We are at the next step in the budget process. This evening we would like to give you a budget overview and then allow ten to twenty minutes for each department. Thero was a little uneasiness on the part of the departments when we started this, but lately everything I hear is that the departments have settled down in this somewhat new process. I know Mike and Roy have been working with the departments rather extensively and I ·. .April 28, !998 · . .. think they are putting together a good program for you. With that, I will turn it over to Mike and he and Roy will do most of the stuff tonight. Some of the department heads are here and some will be coming later to go through each department's budget. Staff will be happy to respond to any questions you might have. Mike Hein: We started off the process identifying revenues and resources and we revised those. Then we came back to you and identified the fixed costs. After taking the fixed costs out, we were left with a discretionary amount. We looked at that discretionary amount, verses historical trends, and allocated a number to each department. The departments had a couple of weeks to formulate their budget based on that number. I have been quite pleased, the departments came back with very good budgets which required very little time from Roy and I, relatively speaking as far as having to go back to them and ask questions and refine things. So tonight it is really Roy's show, he put in all of the hours. He will give you a bdef overview and talk to you about some of the changes we have made since the last time we met. Then he will go over each department's budget line item by line item. Then we will answer any questions you might have. Each department has been invited for their scheduled time so they will be coming in and out. I did not feel it added a lot of value to have all of the department heads sit through this whole process. Most of the departments are covered tonight, but in the interest of conserving time and not making you sit through long budgets, we split it into two evenings. So, in two weeks from today we will finish up with the Police and Public Works, they represent a more entailed budget. Then we will end that session talking about programmable money and prioritizing some of those things. Next Tuesday is the Council meeting and instead of having the budget meeting before the Council meeting, we figured we would have the final budget meeting on the twelfth. I hope we are able to answer any questions you may have tonight. We haven't met with every department head because, for example Human Resources, there weren't really any issues. But then, we spent considerable time with other departments. This represents, basically, what the department head, Roy and I agreed on. I will let Roy give you an overview and then we will start off. Roy Cuaron: First of all, my apologies for the late distribution of the March budget report. That is the most recent financial report and has year-to-date expenditures. Let me go over some of the changes we have made since the last time we met. In your packet you have revised revenue estimates and revised fixed expenses. I want to touch on what caused some of those changes. First of all, our total revenues and resources went down by $167,000 due to a miscalculation of available bond postings. That number may change again as projects are completed and we use bond money. It won't affect the departments' operating budgets because these are restricted funds and will be spent on capital improvement projects. Fixed expenses are up by $8,800 because, when we originally estimated these, we forgot to include the APCO loan. It is $88,000 at zero interest over ten years so we had to increase our fixed expenses by that amount. 2 Mike Hein: That is for the Water Department for an inter-connect. You approved it a couple of months ago. Roy Cuaron: We approved it back in December, I think. Also included in fixed expenses, which was previously not in there, is membership fees. That number is $46,000, which includes $30,000 for GTEC. GTEC is up $10,000 over what the Council previously agreed upon several months ago. It also includes the League of Cities and Towns and PAG. We were able to compensate for that $46,000 by reducing our salary plan adjustment number. Originally we had in there a maximum of a 3% increase. We dropped that down to 2% or 25¢ an hour, which ever is greater. That is competitive with what surrounding jurisdictions are proposing. Under this plan, approximately 63%-67% would receive a 2% increase and the others would receive a 25¢ an hour increase. That reduction of about forty some thousand dollars allows us to not dramatically change our fixed expenses and it allows us to fund the memberships. The other point within the fixed expenses is we have $50,000 for employee benefits. That is to pick up % of the dependent care coverage that Council directed staff to do. Mike Hein: We heard, very clearly, the Council's direction to look at increasing the dependent coverage for employees. We also heard that we needed to explain to employees that it was an increase and maybe not go as high as we had talked about across the board. I recommended, initially, 1 %%. The reason it went up to 2% is because when we evaluated the 1%%, or 25¢ per hour, 2/3 of our employees got 25¢ per hour, meaning the 1%% did not really give them an increase, per say. I thought it would look rather phony if we offered a 1%% increase when only 1/3 of the employees would get a 1%% increase and the rest get 25¢ per hour. The difference between 1%% and 2% equated to $40,000 per year so I recommended 2% across the board because then a majority of the employees would receive the full 2% increase. Roy Cuaron: The other significant change from eadier meetings we have had is that when we originally provided the department with their allocation, we did not include new staff additions. So, we increased their allocation by $49,000 which is the cost of two positions for a full year. In doing so, we had to reduce our programmable reserve from $955,000 to $906,000. That is the amount that the Council will then have an opportunity to prioritize at the May 12th meeting. Those are some of the changes from earlier meetings that we have had with respect revenue estimates and fixed expenses. Any questions at this point. Mike Reuwsaat: I like the process, I think it is going very well and appreciate the staff's work on it. In aggregate, are you still anticipating that the percentage that you gave to each department head will come in within the non- fixed expense funds that are left? Mike Hein: I think just about every department came in at the number or we worked with them until they came to that number. There are certain items that you will hear about on the twelfth, for example police cars and other capital things that couldn't be put into that number, that we are going to recommend under the programmable. Every department that you will go threugh tonight, except the Town Clerk because she has three elections this year, is at that number. Mike Reuwsaat: I will have a whole lot less questions because you guys have run through the detail and the department heads have provided within the parameters of the budget that you requested. My big kick is, let's not spend our reserves for operational expenses. I don't have a lot of questions and I am excited about the precess. Roy Cuaron: When we gave the departments their allocation, we also gave them their current personnel costs, to include any unfilled positions that have been authorized by Council. As we go through the salaries and wages, the only thing they had to come in with was the overtime and any merit increases. With that, my budget includes three staffing, there is currently one unfilled position which is a senior accountant. I will touch on the big dollar items and then answer any questions the Council has. Audit is the cost of our external audit to do confidence and annual financial report, which is required, and that number hasn't changed in the last couple of years. Computer support is $1,000 they will still offer any special pregramming that you may want to do with our receipting pregram or other programs. Mike Hein: I want to point out what contract labor is because you will see it in a lot of departments. For example, if Frank is sick, in Finance, and you have to hire a temp it is basically for temps and you will see that in other departments. Roy Cuaron: Equipment rental allows for us to share storage with the courts for records and such. Under office supplies, about half of that, $2,000, is for software upgrades which we get every year. $1,500 of office supplies is toner for the color printer. The toner and cartridges for the color printer are expensive and don't last long. General office equipment covers calculators for additional staff and whatever miscellaneous equipment we may need for additional staff. Roxanne Ziegler arrived at 6:25. Mayor Harn: Why were they zere last year?. Roy Cuaron: If you recall, under fixed expenses we took all of the monthly maintenance costs on the phone lines so that each department only had to budget for cellular and long distance calls. Mike Hein: We prebably over budgeted on the fixed expense side but we wanted to be safe the first year. Next year it will be more "apples and apples." This represents only long distance and cellular so we can track each department better. Roy Cuaron: In my particular case, there isn't any cellular previsions because I don't have any need for cellular phone services. Travel and 4 ·: ':' '" .' '"" ! :::: '. M~TES OF COUNCIL STUD¥SESSION . i ' . ' :. :. ~. i: i · ' · ....'. '....':.. ::...'." MARANAiTo~vNcouNCUL .... :. · ' April 28, ·1998. ' . '..' ::i. :...: . .... training has details attached, as you will see from every department tonight. Postage and printing is derived from a calculation of how many checks we send out per month, to include business licenses, so that number is probably a good number, maybe somewhat Iow. We send out about 400 check per month and about 800 business licenses per year, which are about 55¢ per license. Fiscal charges is for the rental of the credit card machine. The credit card machine is used primarily by the court so I might talk to the Judge and see if maybe he should budget for a portion of that. As we grow we will probably need that at all of our locations. Also under fiscal charges is bank charges for transfers and such. That is my total budget and I would be happy to entertain any questions. Mike Hein: Just so you know, Jane apologizes. She was scheduled for vacation and can't be here. She was one of the few departments that Roy and I didn't have any questions about. We are prepared to answer any questions and Roy will go over it last. Vice Mayor Sutton: Instead of hitting each one, I would open it up to just asking questions on specific items. If we go through each line item, I think we are going to be here for a very long time. The big ones, like you said, or something that was zero last year and has changed. What I saw with Jane's is that everything is either the same or slightly higher, and most of it is lower than it was last year. That is commendable. Mike Hein: Jane has given some good thought as far as re-prioritizing what little she had in areas of fines, training and consultant services. Whatever you direct us to is the format that we will carry, most of the information is there for you. Roy Cuaron: I want to add that under training on Jane's budget, she emphasized promoting town wide training, therefore most of her dollars are focused on training. She does specific programs that she wants to implement. Mike Hein: She also wanted us to make sure that you knew what United Way was. Roy Cuaron: If you recall, last year we budgeted an allotment for United Way and the Council said they did not want that. Instead the Council wanted that allocated to "local charity." The file that I was using had not made that change so where you see United Way at $5,600 is actually local charities. That is my mistake and I apologize. Mike Hein: The other thing is, I think she is budgeting for an intern to work in conjunction with the Clerk's Office. She came in at the number and she was able to provide for that $5,000 in capital by cutting other line items. We took $1,700 out of her budget from last year. There has been some, I would not necessarily say "tightening the belt," but maintaining the same hole. Jane was a good example of that. .':.....::'i MINUTES'OF COUNCIL STUDY.SESSION · · .'. ':...'..'..:. ' '"::":'i:::::':" :::: ':"MARANAToWNCoUNCILi: '.:.'''"".'.".'." ..'..."" · · ..........:. '::''"April28,.1998 :" : ':'.::' ' ' .:' Roy Cuaron: I would like emphasize something Mike Reuwsaat said earlier about all of the departments coming in within their budget allocations, which represented their operating costs. Some of the departments were able to come in within their budget allocations with capital costs as well. They prioritized their programs and were able fit in some capital equipment. With that we will go to the Courts. The Judge is here to talk to us, but basically what you see there in salary, wages and benefits is staffing of 7:4 Clerk Specialists, 1 Court Administrator, 1 Marshall and 1 Magistrate. The Court budget includes about $34,000 in grant funded items and so, if those grants come through the Court will spend them, otherwise it won't. In particular, $29,000 of capital outlay is contingent on receiving a grant and the Victims Right grant, under contracted services, is dependent on a grant. Mike Hein: You can see he attached detail on the small tools and equipment because that was one of the areas we thought there may be some questions on. Mayor Ham: Just for my information, Judge Dillow, what is the imaging computer system? Judge Dillow: That is a grant that Roy spoke of. We have applied for a grant to facilitate a recording of all of our documents on a CD. We have applied for this grant so we can eliminated storage and we can eliminate having to send someone over to storage for a day or two to find a file. This grant come through the Arizona Criminal Justice System and we have applied for it. We haven't heard yet but we believe it will come around June 1st. Let me back up a little bit. We are required to keep every file for seven years. We have 3,000 files a year and it is a mammoth task and we share storage space with the Accounting Department. What we have decided to do is try to get this computer, with a scanner, and send someone over to the storage shed to put everything on the computer. Then we could eliminate storage costs, boxes and time. When I say time, an example would be if someone gets a DUI in Marana and then they get another DUI in Flagstaff or Kingman then we get a request for a certified document. Then we have to send someone to storage to go through boxes and boxes of files. Sometimes it takes a half a day and sometimes two to five days. If we had it on a CD we could pull it right up by name or case number. It would take minutes, instead of days. Mike Hein: If I could follow up on that, Mayor, I think at the time of the request for you to apply for the grant, there was a concern about whether or not you had enough current staff to implement the system. I believe Nancy responded with a memo that you have some money in consultant services to cover that. Judge Dillow: Yes, we have some money in there. Plus, we have some interns from Pima Community College who are taking Court courses and they have volunteered to come over for six months or so just to learn the court system. We are going to utilize these people to scan these documents and put them on the computer. So, it shouldn't cost anything. 6 · i .... :: . MINUTES:OF COUNCIL STI.DY SESSION ...... · . · ... ='. .MARANA: TOWN COUNCIL . ...".'" .'.'.'.' ."=': " " ··April 28i 1998 Herb Kal: Workman's Compensation went down again, is that because they are a loss ratio? Roy Cuaron: Our rates have gone down across the board, but to be quite honest with you the Courts did have a big drop and I am not sure I can explain that right now. Perhaps 1997-98 was calculated incorrectly, which would account for part of the drop but not the whole amount. The total salaries have gone down because the current year budget had a position in there which was inadvertently approved. There was a position in the Court's budget that didn't exist. So, those salaries reduced the total personnel cost and that goes with the Workman's Comp. But, I certainly can't explain that significant drop. Mike Hein: We will have to check the formula because if you look at Building Services and the Clerk's budget it also drops pretty drastically. Roy Cuaron: One of the things we did for this budget is we actually budgeted by person, by department, what the actual rate was. I don't know that we necessarily did that in previous years, I think we just said, "Here is our current rate and we think it is going to increase by x and we used that factor." I really hadn't noticed that to be quite honest with you. It is reflective of what we can expect, given these salaries and our current rate. Mike Reuwsaat: This budget also assumes, then, that we are not going to have a successful annexation of the 1-10 Corridor?. Roy Cuaron: I think what we will do is, when we come back to prioritize the programmables on the 12th, we have a million dollars in fixed expenses that the Council can prioritize in. I would imagine that at that point any contingent events would probably be programmed within that million dollars. Mike Hein: If you will recall, in the beginning we said we will have a million dollars in contingent revenues and it is off-set by a million dollars in contingent expenses. Those are the kinds of things we would suggest going there. Mike Reuwsaat: I was just looking at what the year-to-date is and what the budget is. It is pretty significant, only 36% of the budget has been spent. Some of that is annexation and contingency is a good part of that, but I really would like to see you guys get that 1-10. Not because of the increased Iow but because of the significant revenue potential to the Town. I don't know if there is anything else that this Council can do, but without those things Court costs escalate. I know you guys can't change a lot of these funds so you all you can do is your job. If there was any way we could get into some of this discretionary ways to off-set, it sure would be nice. Mike Hein: Clearly, Court revenues do not off-set the expenses. It is not a cash count for us. I did talk to the railroad again today and they are interested in bring all of their plan into Marana. Not for railroad purposes but · ' '. . '::':' :' MINUTES'OFC UNCIL STUDY SESSION ".'..:...i' : . ' ': M'ARANA TOWN COUNCI'L ' "' ' " April'28, 1998 .... import purposes. We are still discussing that and it is an opportunity. I actually think it will happen. Ed Hones: If we pick up the 1-10 Corridor, it would partially be a cash cow because there would be a lot more revenue than expenses, correct? Judge Dillow: Yes, it would quadruple our tickets, which would be between $500,000 and $1,000,000. Ed Honea: So, we would be looking at a Court budget that actually supports itself. That would be very unusual for a town our size. Vice Mayor Sutton: That was the point we made during the initial process, "Budget it or you can't spend it." I will help Judge Dillow because that would be a nice source to get in for the revenue. That is what we talked about as far as getting it into that million dollars but not putting it into the Court's specific budget. I want to commend you on a great budget, these are real easy to get through. If you don't get that grant, I would like to see you come back before the Council and see about us funding that. I think that is probably something we should be doing anyway. Roy Cuaron: Moving on the Building Services, one of the reasons you see the big increase in salaries and wages is because Council approved additional funding for two additional staff persons back in December. So, this department has a total staffing of nine, which includes one building official, one plans examiner, four inspectors, one code inspector and two support staff. The budget also includes $26,392 for a plans examiner for half the year in the event that building activities continue to increase. We will be recommending to the Council that they fund that portion with programmable reserves at the May 12th meeting. One other point regarding all of the budgets is under disability insurance, that is a new benefit that the Council approved during the current fiscal year. It was previously in HR's budget and it is now allocated to the appropriate departments, based on their staffing and what that cost is. So, in the 1997-98 budget you will see it as $0 because it was in HR's budget. With that, Joel is here for any questions and he has some detail to add. Mayor Harn: In proposed additional staff, the number look very Iow. Is this just for a partial year?. Roy Cuaron: Yes, this represents the cost for half the year. In the event that activity increases, which will be monitored, it is anticipated that somewhere in the November, December, January time frame we may see an increase in activity. This will require an additional plans examiner. What we see here is a budget for a half a year for an additional plans examiner. Mike Hein: Joel, as you will see from the line items, probably worked harder at trimming than any other department, singularly. On the additional staff proposed, he also asked for some other staff additions. He talked about the need for extra inspectors and such. Based on our analysis of workload over 8 :..i i' i'i ~: i: MINUTES 0F. COUNCIL'sTUDY SESSION'" :: ::: '" MARANATOWNCOUNCI'I~ · ' 'Ap ~' · '. .: · :.: .. '... ril28 i998' · time, which hasn't been dipped into because of good management, we are not recommending that. Joel was gracious enough to work with us. Should building boom and we analyze and if for example Mr. Cook, who now does part-time inspections, has to go to full-time and they start accruing overtime, we may revisit it in the middle of the year. I think the plans examiner, Joel, did an exceptional job justifying, based on what other communities do for ratio of plans coming through, in the spirit of trying to provide quality customer service. I think we can improve on the turn-around time even a little bit more. I would like Joel to talk a little bit more about why he thinks that is justified. Joel Svoboda: Certainly, right now we are trying to maintain service based on what I see is the current need. Currently there is a high level of permitting activity. For example, I asked the permits staff to give me a report on the where we stand on the number houses because I anticipated in April we would have a high number. Project over the last two or three years, Apdl is always a plus birth month, a month of high activity. We have already issued 81 houses this month and we have eight more to be issued over the next two days which will bring us close to 90 house permits. The highest number we have prior to that is 72. You can see the trend is continuing up. Right now, what we are doing is I have the new system with a permit clerk to be picked up in December and we have been training him to take up some of the easier, less technical, permits and deal with those to alleviate the load off of the plans examiner so the plans examiner can concentrate on the more technically involved projects. He has also been working with the outside consulting company and farming things out. Basically, he tells the customer that when they are ready to submit their plans to let him know 48 hours in advance and he will tell them where we are with our plans review time. If we don't feel we can give them good service in-house, he will recommend three or four outside markets to go to. Once they are reviewed by the outside market, they can bring them to us and we can get them turned over in a quick time. So far that is working fairly well, but every time we give that service away, they are collecting the money for the plan review that we are not collecting in revenue. I have been tallying up those dollars and those dollars are quickly approaching the dollars per month of a plans examiner. If I hired a plans examiner instead of that revenue going away then we are keeping it in-house and we are paying for that position. Mike Hein: The other thing we have looked at is the Town has done an excellent job in not over staffing in rush times. In other words, we don't want to staff up and then have activity decrease and then we are stuck with employees we don't need. I think that even if activity curtailed, which I don't see happening, the plans examiner would be a useful position. Whereas, with an inspector we could contract with another individual if we got into a real pinch. Hurvie Davis: This is one wherel have spent a lot of time in over the last number of years. Our philosophy has been customer service. Once the Council approves a project to be put on the ground in our community, we feel it is our job to get that project on the ground quickly. We have the reputation to have a quick turn-around. Occasionally, you have gotten a call 9 ": :: ."ii '.:.:: iMiNuTES OF COUNCIL STUDy SESSION : . ' · · April 28, 1998 or two but we have been noted for a quick turn-around. Time is money tO everyone so I think it is very critical that we continue with that reputation. At times I have added a staff member, with your approval, to a particular department's budget but we put it on hold until such time as we saw the actual need for it and we felt comfortable that that workload would continue rather than just peaking and then not having anything after that. We have been very cautious with that but if we get to a point where we are not able to provide that service, then developers will be knocking on your door. Driver's Mart wanted to get that project out very quickly and we bent over backwards. Staff worked very hard to get that out. Home Depot is the same way, they want to break ground the first of June and be open the first of January. That is extremely quick turn-around time. Over the last couple of weeks I have spent an hour or two per day going out with John Thomas, our chief inspector, and I have been on the project. There is a tremendous amount of inspection that goes into it. You will see some work that is not proper and then they have had to come back in and try to correct it. It is not done the way the code requires it, but it is an acceptable alternative to the code to correct it. This is a real priority to us, for the safety of the public, to ensure that people buying homes get safe and secure housing, as well as industrial or commercial buildings. I have learned a lot the last couple of weeks just going out with John Thomas and seeing some of the things. Mike Reuwsaat: Mayor, I feel as strongly, if not more strongly, about that. I do not want to be at six months when we are going to meet at twelve months. When we get behind schedule with the builders, it starts proliferating through the community and we don't want to do that, we have a good reputation. I would support staff in that. Ed Honea: It may be about as cheap as the cellular phones to put radios in all of the trucks, maybe even cheaper in the long run. Joel Svoboda: I have been looking into that, in terms of cost. Currently, what we are running each month is between $75 and $100. My phone typically runs less than $50 because I don't do much calling. Most of my arein between meetings when I am driving. I try to take advantage of that fifteen minutes of road time to make some calls and take care of business, it makes my time a little more efficient. Mike Hein: Just to clarify, most of your communication is not between your staff. Joel Svoboda: No, most of it comes from efficiency of contractors calling to set up a date for inspection, if our guy is going out to that job and the contractor calls and says I have to cancel because something that was supposed to happen didn't, that just saved our guy about fifteen minutes of going over there, stopping and finding out that he can't inspect today and has to go back tomorrow. Ed Honea: You can do that with a radio, as well, if they call the dispatcher. I thought it might be more efficient as you get larger and larger. 10 ': "i:" ;::::.." MINUTES OF COUNCIL ST;UDY'SESSION .::::' .'. '.'.'.'".'.:": . :.. .... :. 'MARANATOWN.couNcIL .' ......: .. .: 'April28,.1'998 · .. .'' .. ..: Joel Svoboda: Another thing I have been looking at is outside at different phone systems. There are phone systems that have combination radio/telephone, all in one service, and it splits the cost differently. It is looking like per use per month would be quite a bit cheaper. However, there is an up front cost of equipment but I think it will wash. In the long run it could save as much as $1,800 of our budget for phone, if I leave this budget at the number that you see there and choose to do that, analyze the cost and come back and say, "1 think if we buy these phones, there is some up front costs but per month I am going to save a bunch on my phone bill," the following year I will see the savings on the phones we paid for. Hurvie Davis: We have run periodic checks, historically, on the phone bills and phone calls on the cellular phones. We have sent out memos to the employees to try and minimize those calls. Joel Svoboda: We try to keep under $7,500 per year, but a lot of that is generated by the contractor calling to set up or cancel inspections. Ed Honea: It might make it more convenient to work if inspectors can talk to each other or if someone is covering something for someone else with a radio because then they can talk all they want. Joel Svoboda: Yes, 89% of the calls are made by contractors or someone outside who need to ask the builder if they can do something. Occasionally the inspector will call John Thomas, the senior inspector, to forward to the staff at the office that he needs something out of a file or something like that and ask for staff to call him back. Most of it is contractors, though. Vice Mayor Sutton: Do you shop with the new Competitive Environment of the Cellular and PCS? The rates change almost monthly now. Joel Svoboda: To tell you the truth, part of my concern is that I have a flip phone and the new inspector has a flip phone but I have two phones that are so old that I have a spare phone shoved in a drawer for spare parts because they don't even make parts for that phone any more. That is one of the reasons I have been looking at the new phone systems. Nextel is the company I am going with right now. I have been asking for their brochure and literature and I am waiting for the next phone bill so I can take it home and analyze it minute by minute and compare it to their rates and see what the savings would be over a particular month. I want to see if I can determine that there will be a savings because if there is no savings then there is no point. Vice Mayor Sutton: Keep in mind that most of these companies have government departments that handle strictly government and it is a pretty good rate. Joel Svoboda: I am going to analyze it, first, on the normal market. If I can get a break on it then I get kudos for that. 11 :. :. ·::: ' MENU...,ES OF :COUNCIL :STUDY SESSION · · :' ."' '.' .' .' i i:" . : i MARANATOWN.'COUNC[L '": .... · ". '"-r:'~xi,.28~1998 :.:' ' '" " :' ":: ''" ' Mike Reuwsaat: Can you look at it on a town wide basis and see if you can come up with some savings for everybody so each department is not doing it separately? Roy Cuaron: Currently, our phone service is with Cellular One and we do have a government rate. If I am not mistaken, that rate is regardless of whether we are with Cellular One or Air Touch. It is 15¢ per minute, 25¢ at peak, and $8.95 for basic service per month. Joel Svoboda: We have had those phones, they were part of the original service, and they have served us well. I haven't actually asked if there is a cost in changing those phones out when they actually die. Herb Kal: They have a deal now where when you sign up for a new line you get a free phone. Vice Mayor Sutton: I don't want to beat this, but I think there could be some savings and some negotiating with the phone. One issue is that the rates that are out right now are better than the governmental rates you are getting. Those used to be good rates but they aren't any more, especially on unlimited plans or high minute usage plans. The other issue is that it is tough out here because you have to find someone who covers the area well enough that your phones stay on. I have Sprint and I have problems out here. You need to find one of the carriers that covers this area. If you go in there with the Town agreement, I would almost bet you could get every phone for free. Joel Svoboda: What I have been looking at is Nextel. Their billing is a little bit different in that they don't charge by the minute, they charge down to the second. If you spend one minute and one second on a phone call, you don't get charged for two minutes, you get charged for one minute and one second. Supposedly, their bills will be less because of that. Mike Hein: Mayor if I could, I don't know if the Judge and Joel know this or not but they are free to go. You are more than welcome to stay but you don't have to. If I may suggest and the Council doesn't object, we could take Water and let the Clerk and Mayor and Council slip, since we are captive anyway. (O.K.) Mayor Harn: We are on a five minute recess. Hurvie Davis: This is just information, but going back a few years ago when I was looking for someone to help me with water issues, I hooked up with Mr. DeSpain. I tried to get Mr. DeSpain to come to work for the Town but he had his fingers in so many ties and so forth that he did not want to do it. I sent out a memo informing you that Mr. DeSpain has agreed to become a part of the staff, effective July 1, 1998, in our Utilities Department, which is going to include Water, we hope, and sewer and a very strong potential of getting into electricity. A lot of that is attributed to Mr. Hein but I am going to 12 "'". M'ARANA TOWN CouNcIL' ' .'..'.'.'.'.'.'." ' ". '.'.'. '.'."' "' .: .. April 28,'1998 ... take credit for getting Mr. DeSpain on as a permanent member of Town staff. Mayor Ham: Let the record show that we are back in session and the time is 7:11 P.M. Roy Cuaron: It was brought to my attention that the budget reports that I passed out to you this afternoon did not include the Administration budget. I apologize for that. If you will return all of the budget reports after the meeting, I will print out the Admin budget and redistribute those in the packets tomorrow. You won't have much to compare to when we get to the Clerk's budget, I just forgot to print it out, sorry. The salaries, wages and benefits under the Water Department include Brad coming on board, so that accounts for the difference between 1997-98 and 1998-99. The department staffing level includes a total of five: Operations Manager, Water Operator, Utilities Director and support staff. We will be proposing that we decrease their allocation in bond moneys to fund certain other projects that I think are of equal priority. When we get to the May 12th meeting you will see that. Basically, what you have here is the Water Department budget, which is very similar to last year's. It does include bond moneys to allow for the purpose of water systems. They have been identified, although that could change as well. It does allow for about $800,000+ in capital improvement projects that were approved with bond moneys. Then there is a contingent expense of $507,000, which is equivalent to contingent revenue, in the event that we acquire additional water systems. Mike Hein: That is basically Tucson Water. When we went over to revenues, we had water system operation revenue and that was basically the Continental Ranch area and Dove Mountain. Brad and Ann have done a good job, we have gone over their detail almost as much as any other department. There were other departments who received more scrutiny, which I'm not sure Ann would believe, but there were others worse than Water. They did a good job of explaining every line item, as far as well maintenance. They have a line item for major well failure, just in case, and they have done a good job in breaking down and analyzing their actual expenses and what they forecast. When Roy was talking about the decrease of $200,000, in the bottom program we had budgeted one project for $600,000 and it came in at $120,000 so we had a $480,000 surplus, if you will. That money was put back into the Water budget. To cover the expenses of some of the things we are going to recommend on May 12th, we are pulling $200,000 out of that. I will tell you right now, to kind of "kick the hat," we are going to recommend funding the Senior Center in full this year, which is a total cost of $467,000. We propose to fund $200,000 of that from the bonds. The question is, then, is it an opportunity cost? Water certainly had ideas about how they could spend it. I don't believe, no matter how good they are, they could spend it all this fiscal year, but we can get the Senior Center done this fiscal year. Should we need to fund projects and water above and beyond what we have budgeted for this fiscal year, we can find money in other sources. We have taken the $200,000 from Water, out of the bond proceeds, and are recommending reallocation of that, which you 13 · ' M'ARANA Town COUNCIL." · . .' will see May 12~h under Public Works, Parks and Rec., to fund nearly half of the Recreation Center. Brad DeSpain: I looked at the tentative schedule, everyone else has ten minutes and we have thirty. That bothered me. I really wanted to comment on the major well failure and the park well repair maintenance. We have inherited the park well, whether we wanted it or not, and there has not been anything budget to repair that pump or the electric motor or the pressure tank or whatever else could happen over there. Dave mentioned that there was some electrical that they were budgeting for, but a good part of that $50,000 and $17,000 is for those kinds of things. To my knowledge, that pump has not been worked on at all. Those turbans in the last 10-15 years are probably to that point. We felt we better cover that in our budget, rather than rely on contingency. Mike Reuwsaat: Can we do that out of this year's budget? Brad DeSpain: I don't think we want to rebuild it until we have to. It is not ready yet and I don't know when it will be. I have not seen it out of the hole, I don't think it has ever been out of the hole. I don't think we need to encounter that expense to determine whether we need to do it or not. Let's wait until it causes problems. We should get some vibrations and some signs that will tell us that we are having failure. We may have to budget for it every year for five years before we have any trouble, but we better have it there if we need it. Herb Kal: How did you come up with the number $17,0007 Brad DeSpain: That is for re-drilling, in case we have one of the trust wells fails. The trust wells at Cortaro are our responsibility if we have a failure. I don't see it but that is one of the things that we better continually budget for so if and when it does occur we have it covered. Roy Cuaron: I just want to clarify who the five people are because there may be some confusion. Floyd Foster, Ann Meaders, Janet Carr, Brad DeSpain, and Joe Miller. Mike Hein: The reason there is this confusion is he mentioned that there were two slots for Joe, basically, in his opening remarks. Part of that is if we acquire the other water systems. Brad DeSpain: The other reason we have budgeted another slot for Joe is if development occurs and we have to have inspection, then we are going to have to move somebody to do that on-site inspection of water systems and sewer for the developers. Mike Hein: For example, if Sahuaro Springs and a couple other take off then we don't have anyone on staff to inspect the water systems to make sure they are installed right. 14 Sherry Millner: I have a question on dues and subscriptions. I am assuming that the Water CASA wasn't in there last year. Could you explain what that is? Is it a software system? Mike Hein: It is an intergovernmental agreement. Ann Meaders: It is a newly formed organization of several water utilities. It is funded, primarily, by the Bureau of Reclamation and the Arizona Water Resources and the UofA. It is for conservation, all different kinds of things to help all of the utilities, as a unit, with conservation issues. Brad DeSpain: It is an annual membership. They have hired a water conservation expert, Val Little, and this is our contribution toward her salary and she works out of Water Resources Research Center at the UofA on Campbell. This is our proportional share, based on customers. Mike HeM: We talked a great deal about that. They have a small amount in my customer report conservation efforts. They have $4,000 budgeted for conservation efforts. As we grow bigger and as we grow closer to our gallons per capita per day, we will be required by the State to start conservation efforts. The membership is the CASAS organization will assist in providing us the information, materials and techniques to start water conservation efforts. In Nogales we spent $60,000-$70,000 per year on conservation efforts because we violated the GPCD. Brad DeSpain: That will help keep us off the carpet in fines. There is one problem we do have and I think we should surface it. The park has no water rights so the water that is used on that park has to come out of the gallons per capita per day of our customers. We need to purchase Type II non- Irrigation rights for that park. Someone slipped up when they bought it from the County, we should have gotten the water rights with it. That is going to cause some problems and another reason we need to get in the groove. We will know with purchasing Cortaro and purchasing Marana Water Service, Inc. and so forth. They will develop our gallons per capita per day in the next four months. We feel we are going to be O.K. but we won't know until that time. If we are in violation, we will have to start immediately with a plan to promote water conservation. Herb Kal: In gallons per day of consumption, if we don't count the park, are we within reason? What is the allowable and where would we be? Brad DeSpain: We would be in good shape. I think 223 is the number we will come out at. Without the park we are only allowed 127. I don't know exactly where we will be because they have not put Lewis's stuff and Cortaro's stuff together with the Hones System to determine where we are at. The Arizona Department of Water Resoumes, David Johnson, will do that and then they will blend those together and find out where we are at. The Picture Rocks portion of our system is like 250. They have been over and Bud Lewis had to but down $10,000 worth of penalties to get them down to over 10%. The Town will be subject to that too. They will have to fit 15 :': · ': 'MINUTES COUNCIL STU]0¥ SESSI · . MARANA'TOWN COUNCIL. · '..' into this plan. Hones Heights is usually considerably under. They will work with us because they know where we are with this. We probably do need to budget, in the future, to buy some Type II dghts and I think your friend Wexler probably has the most and we ought to start working on him to work out something with him. We may have to do some "horse trading" where we could get 70-100 acre feet of Type II property. Mike Reuwsaat: We are always looking at well sites at that alternative purification plan just off of Tangerine. Are we going to pursue that any further as using the CAP water as a conservation source? Brad DeSpain: We have budgeted $5,000 for that slow sand filtration continuation, There is a real political thing that is occurring. The City of Tucson wants that information really, really bad. They have had three of them contact me in the last week because it has been on their agenda and they want to know if that information is going to be public and I told them I would talk to the Council and management. I think we can do that, if we have to present it to the Council to make it public, we may have to do that. There are some politics occurring there, they just don't want to be involved with Brent because they have had that kind of report over time and maybe what he has said and been doing has been right and they don't want to admit that at this point. They are bucking it, although with the new RFP they are going after with the American Water Works, he would have an opportunity to bid on that slow sand portion of that. They are going to do both rapid sand and slow sand with the American Water Works. It is about a $400,000-$500,000 research pilot project. He would have that opportunity. Yes, we plan to pursue and we have budgeted $5,000. He does not know we have budgeted for it and he won't know, but when he gets his report to us in July or August we will see where we're at and what more we need. It is working good and anytime anyone wants a tour we would be glad to take you. Tucson Water was out, incidentally, so the lead individual at the Hayden/Udall Water Treatment Facility has had contact. It is working good and if you tasted the water I think you would be comfortable with it. We plan to have some funds to continue that. Ed Honea: We invested $10,000 in this last fiscal year and $5,000 this fiscal year. What does that actually buy us? Does it buy us the right to use the procedure? What are we investing in here? I just want to knew if we are going to be able to use the treatment plant. Brad DeSpain: In the contract we signed with Brent I believe in the fist phase of so many gallons in a given period of time (5 or 10 years) we will have the right. I will have to go back and review the contract for details. Those royalties of the patent that would have to be paid would be waived for the Town. There is a point in time when we will negotiate with him as to what those royalties will be. I think where we are participants, we can drive a very hard bargain because nobody else would even listen or talk to him or give him the time of day on a street corner. We helped him elevate that some, If you want a candid opinion, patents are only good for the exact same type of operation or instrument/device that was patented. A change or two on that thing and you probably wouldn't have to use his patent, you ]6 ": ":' ' MINUTES'OF COUNCIL STUDY SESSION ".'..".".' · '.' :' :' '..' '. · '" ' ' '."MARANA TOWN COUNCIL '.' · April.28,1998 .. ''. · . could develop your own system. Filtration would be the toughest part to handle, I think, because the nano-filters are patented and they are with a large company that manufactures them. Mayor Ham: Are there any questions? Are there any questions on the budget? Hearing none, we will move on to the Clerk's budget. Roy Cuaron: The Clerk's budget, in terms of salaries and wages, is four full time and one half time. This includes one clerk, one deputy clerk, two support staff and one receptionist. The 1997-98 budget numbers under the salades and wages portion of it include the manager's office, as well. In prior years we did not have a separate manager's budget so those numbers include expenses associated with the manager's office. When we get to the Town Manager, you see there is no budget numbers as shown here because it was very difficult to break out, for example office supplies, how much was proportioned to the manager verses the clerk. As Mike mentioned eadier, elections are up over the previous year due to three pending elections. Equipment storage rental is related not only to storage rental but also the postage machine, which is about $1000 per quarter. Are there any questions? Mayor Harn: Ms. Groseclose, I would assume that the high cost of office supplies is due to the Town Council packets. Sandy Groseclose: That is correct, Madame Mayor. A lot of it has to do with that. Copy paper is a big cost also, about $3000. Then we have other things such as binders, various colored copy paper, fax cartridges (which we go through frequently because we receive faxes for all the departments) and kitchen supplies (such as coffee, creamer, etc.). We go through quite a bit of coffee, certainly not as much as Oro Valley, but we spend about $700. Flags are about $800 per year for the Town Hall as well as the monument by Circle K. Some computer software upgrades we may need were put into this. Kitchen paper products are used quite a bit for meetings, such as this, and other things that happen at Town Hall. Audio tapes are included in this, as well. Then there is various office supplies for the filing system. The copier toner and printer toner runs about $1,200 per year. Vice Mayor Sutton: Sandy, with the money that we are giving to the Chamber now to start taking over the Founders' Day thing, why are we still going to do the breakfast. Sandy Groseclose: In the Council's budget, that is the Mayor's breakfast that has been put on over the years. It has always been totally separate. Roy Cuaron: On the Mayor and Council budget there is one change from an allocation that was originally distributed to the department heads. We transferred $36,000 from the Town manager's budget over to the Mayor and Council to utilize for public relations. Other than that, the budget is pretty much identical to years passed. 17 Sandy Groseclose: There may be a little bit of confusion under public relations for your support, that shows $14,780. Maybe that should have been title community relations. That is where I have detailed information as to the Festival booth, the Kolbe dinner, etc. This $36,000 has not been allocated to anything specific, is that correct Roy? Mike Hein: That was actually my fault. Sandy had the $14,000 under public relations and then the Mayor and some of the Council and I had been talking about getting in a firm to work on media relations and honing in on an image for the community. Some of you had met Mr. Rick Kaneen and his sister. They had given us some proposals this fiscal year, which were in my estimation unreasonable from a cost standpoinL I segregated this portion for public relations to confine them to a more realistic number to start with. This does not mean you, Mayor and Council, have to hire a specific firm or use that money for that service, but it is clearly there for you to do so. We thought that was the cleanest way to proceed with that kind of issue. The scope of services provided to us includes media training for Mayor and Council and key staff members. I think we have the ability to work on our ability working with the press on camera, press releases, making the most of opportunities like ground breakings, etc. They would not be special events coordinators, per say. They are not going to order tents and food and such, they are going to train individuals on how to deal with the media. They are also going to work with the Mayor and Council on identifying visions of what we want to communicate to not only our own residents but residents in surrounding areas, and to repeat those things. For example, every time Councilman Kal is on TV he says the same three things about Marana that Councilman Reuwsaat says when he is on TV. Mayor Harn: We met with the Kaneens and talked with them to get some idea of what is out there and get some thoughts on what we need to kind of present something to the Council because we think that with referendums coming up and some of the other things coming before the Council at this time there might be a need for us to work with some public relations people at times to get some advice. Ed Honea: I agree with that concept, Madame Mayor, but I disagree with putting it in the Mayor and Council budget. These things are printed in the papers and things of that nature, general budgets for the Town and things of that nature. When you put the Mayor and Council budget in there and you stick $85,000 on it, a lot of people are going to ask questions. They are going to want to know what in the world we are doing with $85,000. I feel like the appropriate place would be Administration, or something like that, for both of those items. That would take $50,000 out of our budget and bring it down to $35,000, which is a little more reasonable. Mike Hein: Let me propose to put public relations under mine and community relations under Sandy. Ed Honea: Do you understand what I am saying? You put it in the paper and they see $85,000, they are going to think that something is wrong. 18 "' ' : :: .:'MARANA TOWN.COUNCIL ' Perception is very important and people don't look at detail, they look at the bottom line. Mike Reuwsaat: The first thing they am going to think is, "What kind of salaries are they getting?" Ed Honea: If we take $50,000 off and leave it a $35,000, they might think it is reasonable. Vice Mayor Sutton: Also, the numbers for this fiscal year go down from last fiscal year's budget. Sherry Millner: We have $1,000 for seminars. Does that include if someone on the Council wants to go to UofA leadership training? I don't know if any other council members am interested in leadership training, but I know there is one coming up in January for people who have taken it before and graduated from it. I would like to go, but I don't know how much it will be, they have not given a price yet. I will reiterate that everyone on this Council needs training because we are leaders. I don't think $1,000 is enough for seminars, unless we can pull it out of somewhere else. I look at the National League of Cities and only one of us went last year. I don't think them am going to be that many people going to that this year. Maybe we can shift some of that money into the seminars. Mike Hein: I propose that we take $1,000 off of National League of Cities and put it toward seminars. (agreed) Mayor Harn: I think the items put under travel and training are pretty generous, I think it is probably not going to be that high, Roy Cuaron: The Planning and Zoning budget staffing includes eight staff: one planning director; three planners, one GIS person and three office support staff. That is reflected in the current year's $307,000. Professional services, I believe, includes continuation of the capital improvement program. I think the additional items are in line with what has been spent in the past. With that, are there any questions? Mike Hein: Jerry also changed some of the training. He made a good effort to try and include P&Z commissioners and he proposed sending one of them to Seattle. If there is a culprit, it is Roy and I. We trimmed that back to one person to Seattle this year. So if any P&Z commissioners say they am not going to Seattle, that is my fault. I wasn't sure that $2,200 was justified for that expense. Otherwise, Jerry has done a good job. Some of you may have seen the detail he provided on professional services because I know historically that has been a concern, as far as the allocation of priorities. I think he did a good job justifying that this year. Most of this stuff is pretty flat line. ]9 '" "" '" "' 'MINUTES.OF COUNCIL STUDY SESSION: .." .'..'. '."i .' '..."" :.; :..: .':;; '.:' = .:' :' . 'M:ARANA'TOWN'COUNCiL ' "' :' ' '""i ".i.''"'' April 28, !'998 ' ' ' · .' · '.'.. Roxanne Ziegler: Jerry, I have a question about contract labor. You talk about Arizona Office Equipment and that it is a set amount and then it is per copy. Can we negotiate that based on having more business there now. Lisa: I talked to them and we don't get charged any more per copy when we go over. if we increased it, it would be the same as what we are paying now. They are charging us the same as they would if we increased our service contract. Right now we are at 42,500 and if we went up and did not meet that then we would be paying more. Whereas, dght now if we go over the 42,500 then we are not being charged for that, we are just paying for the extra copies. Roxanne Ziegler: I also have a question on fuel and oil. The last sentence says there has been discussion for the commission to be reimbursed for their travel time for Planning and Zoning meetings. I know at one time, not too long ago, this became a real issue. What is the criteria for those guys, does anybody know?. Either they get reimbursed or they don't. When I was on the Commission I just never asked so I don't know. Jerry Flannery: They can, as far as I understand, as long as we budget for it. The reimbursement is 32 % ¢ a mile. Some of the commissioners do travel and some of them have requested to be reimbursed. Roxanne Ziegler: They have expressed it but is it in our bylaws? (no) If it is not, then why would we do it? If it is not in there now, then why do it? Jerry Flannery: Mileage reimbursement, typically, wouldn't be covered under the commission bylaws. Although, we can certainly look at amending them to include them. This is more of a policy that any kind of volunteers (interns, commissioners, council members, or anyone else who volunteers their time to the Town) is eligible for reimbursement. I don't know if there is an official administrative policy on it or not. Mike Hein: This has been a topic of discussion over this past year. We have denied retroactive requests for passed years. We have gotten requests for two years of retroactive reimbursement. Roy sent a memo out to the Planning Department saying, "Hera is the schedule and the sheets to fill infor mileage reimbursement to any commission members. If you want reimbursement, fill out the forms, submit them and you will get reimbursed." Roxanne Ziegler: Was that forwarded on to the commissioners? Jerry Flannery: Yes it was. Mike Hein: One of the commissioners want to donate their mileage to a non-profit organization. We said we did not want to write the check to the non-profit, we write the check to them and they do what they want with it. Roxanne Ziegler: As long as all of them know that it is there and if they want to utilize it, fine. 20 '.. ". ". ' :..' :'.'." "..'. MINUTES OF COUNCIL SiUDY 'SESSION .' '.': ' :..":::""i::::i':.'::'.M~i'RANA..ToWN'coiJNCiL" · . ' : ":' "' '" ' ' '. "Apfii.28,1998 "' " Ed Honea: have a question relating to all three of the planning departments. If we can make a move sometime this fiscal year, there is going to be considerable amounts of expenses over and above partitions and hooking up computer and phone lines. Are these budgets going to be sufficient if that happens? Mike Hein: Yes, One of the criteria for the proposed moves are cost effectiveness. We have proposed and had recent discussions on accomplishing moving the whole Development Center to a lease space and paying for the first year lease space and all of the tenant improvements (cubicles, office space, furniture, moving company, rewiring, tenant improvements in the vacated area) with the amount budgeted for the modular this fiscal year ($290,000) Some of the departments have some office furniture that is small because most of the stuff they can take with them from the existing place. Jerry Flannery: Most of the stuff I have in Planning is stuff that can come with us. We are lucky that we have the conference room table and all of that. Mike Hein: I don't necessarily want to say this in front of Jerry because you say one thing and it is all over town. You will recall, in our fixed expenses, we have $100,000 for new lease space, as well. Should we not be able to come in at the $290,000, we are confident that we have enough money for furniture, miscellaneous, electrical and such between the current fiscal year and the proposed budgets. Mike Reuwsaat: Under professional services, is the GiS support for continuing for additional overlays? Jerry Flannery: As you know, Helen Ireland is our GIS analyst and she is very good at what she does. She has requested several software and hardware upgrades. The goal in this case is to have the entire planning staff with a certain degree of ability to access GIS information. She gets inundated with a lot of small requests, for example the tax value on a property, and a planner should be able to pull those things up and do a three hundred foot radius around the property and get the notification out to whoever needs to be notified. That would free Helen up to do a lot of projects town wide. A lot of departments utilize her and we are very glad she is in our department, it is a real plus for us. The GIS support is ongoing and it covers potential hardware and software upgrades. It also takes potential aerial photos in conjunction with the County into consideration. The County is doing an aerial photo sweep of everything from the Tucson region up to the Pinal County line. There are large portions of Marana that are not covered by that and there is a lot of money involved in that. Helen is really good at finding resources of information. A lot of that money is there in hopes of her being able to obtain some of that aerial photo and some of the software upgrades. 21 .'...' .' .'.' :'.'.'.'M"ITNUTES OF'COUNCIL·STUDY SEssiON· · '.'..'" ' i.' ".'. · .... ".'.:.': ..:'..'.':"MARANA.TOwNcouNCIL.' · i..' '.'..: "... ' ..'. · ".'i · .'i ':"".:' "": . "." ." ~pri! 28,1998 "'"' ·" . '".'..:"'" i'."i Mike Reuwsaat: Have you got a schedule of a workload from her outside of projects that come and go, in terms of where she is going with the GIS for you guys. I don't have to have it here and it doesn't have to be a lengthy memo. I would just like to have something that says this is what we have done and this is where we are going. Jerry Flannery: Certainly, I can provide you with some of the monthly reports that I ask from her, Mike Reuwsaat: I don't want a monthly report. What I want is an outline to see where we are going with it, ultimately. I want to see where we are and where we are going with the additional overlays. (O.K.) On your current professional services who are you working with and what are you paying for?. Jerry Flannery: We are looking at CSC Counts on the area plans. CSC Counts, as you know, did our general plan and they are very familiar with the land uses and the potential development, as far as ultimate development of the Town. So, Mr. Counts is very familiar with the Town. They put in for the CIP but they did not get the CIP. We did not feel, as a group, that their expertise was in that area but I think their expertise is in the area of these types of area plans. I think they could do a very significant improvement of the area. Mike Reuwsaat: I agree with that and I understand where you are going with that. Where are we in terms of the zoning and the City corridors? What have you got going now and will all of that be done by the time this fiscal year budget is over so there won't be expenditures next year? I'll take this one step further. I know a few of us have been helping on the impact fees and getting the methodology to look at what Marana has. Is that something that is going to be an internal analysis? Jerry Flannery: To answer the first part, what I would like to do in this budget year is to start the program to get the Tangerine area plan going and finishing it up in the next budget year. Then completing the north Marana area plan in the next budget year. There maybe some surplus there, hopefully, by the end of next budget year to begin the third area plan. Ultimately, I would envision the Town having at least four area plans. There are distinct geographical and demographical differences in parts of Town. As far as the impact fees, as you and Councilman Honea may be aware, I have been up in the Phoenix area gathering information on impact fees. It's definitely a very complicated issue. Some of the feedback I got from the City of Gilbert, the City of Chandler and the City of Phoenix (mostly the City of Phoenix because they are way above everybody else) is that if we are looking at doing something as far as administrating impact fees or anything in that realm, we hire a specialist to specifically oversee that program. They all go back to the capital improvement program where you have a capital improvement program that looks at five years of expenditures and the types of improvements that are going to occur in the five year time frame. Then you come back and at that point you may have a cost estimate of what 22 April 28, 1.998 : . certain typos of infrastructures are going to incur and you can start assessing the impact fees. The impact fees have to meet legal nexus, all of these legal terms so whatever you charge has to have a tit-for-tat. You have to have a direct correlation between what you are charging the amount of improvement fees. Those are very complicated issues and, certainly, we are taking some baby steps to that effect. I think that is something that, if the Council as a whole would like to discuss that, I would like to bring to the Council and get some clear direction on. Roxanne Ziegler: That is exactly what I was going to say. I don't think we've discussed impact fees and taxes, unless you can refresh my memory. I know there are a lot of side meetings that go on and you guys talk to staff and that is one thing, but I don't think as a Council we have been approached about impact fees, "should we have them or should we not?" I don't want to see Jerry's time resources being spent on something that, as a Council, we haven't really talked about. Ed Hones: We did have a Council meeting and we gave him direction to go out and research this material. This was in the last three months. Roxanne Ziegler: I keep hearing about impact fees, impact fees, but I don't see anything, I just keep hearing about it. ~ have seen enough to know that, as Jerry said, it could be very lengthy and it could be very expensive. Mayor Ham: I have left a lot of latitude in these meetings but I think that we are kind of getting into kind of a specific area where, if we would like to have this put on the agenda, we could discuss it at the next Council meeting. Mike Reuwsaat: Mayor, I would just like to make a comment. We haven't discussed area plans and we haven't discussed the adequate public facilities ordinance, yet they are budgeted. If you remember about two months ago, because I was concerned about exactly what you are saying, I asked that Public Works and Planning bring their projected projects to the Council so we could review and prioritize those and then have them in the budget. Then we would not get to this point where we are picking and choosing and discussing it at this level. Roxanne Ziegler: Give me packets to look at and I would be glad to look at impact fees. Have we, as a Council, gotten packets or anything on impact fees? Mike Reuwsaat: We haven't gotten anything on any of these, that is my point. Mike Hein: I think you are both saying the same thing, and we have been working with staff. I think what I have been hearing for the last few months is before Jerry and another staff member of another department go out and contract for a Tangerine area plan, they should come to Council and say, "1 am getting ready to do this. Is this the direction you want us to take, is this a priority?" I think Jerry understands that and I have spoken to Dave After 23 · ' . '...'..':. '. · .:. '..." .': '.. April 28, 1998" . ':. : ' :':' about it. The question is, "is $57,000 for professional services an appropriate amount?" I would say probably, but we also hear, loud and clear, that tomorrow Jerry is not going to run out and sign a contract for a northern Marana area plan until he gets that direction from Council. The thing we don't want to have happen is to finish a plan and come to you guys and you say, "What the heck are you doing this for?" Jerry Flannery: Just for my edification, we have a list of projects and I am assuming these are the projects you are talking about. Mike Reuwsaat: There are other projects. For instance, where are we with hiring CSC Counts to take us in the direction of hard zoning and get us out of the system that is explosively antiquated and probably won't hold up under law? I am trying to put it in the court where it belongs, Council has some responsibility in setting some corrections so that you are not coming to us with a scenic corridor plan that was approved three years ago and we are saying, "Gosh, we have a lot of other priorities." Some of that is just filtering through because there are always conversations going on, and that is normal. I am not saying that is a problem but I think it's important enough for the direction of the Town to have you bring the full gamut of hard zoning and impact fees and such and then let us make some decisions because it comes down to spending dollars, too. Mike Hein: Let me suggest this. I will get with Jerry and work on this item. These number could very well change but after tonight we are going to give you the tentative budget in two weeks, that will be your maximum amount. Let me work with Jerry over the next couple of weeks and at your May 12th meeting we will start with Jerry. Lets say we have about $57,000-$60,000, I am going to ask Jerry to brainstorm with me for a list of projects. Then we will have you guys prioritize them. Jerry Flannery: Zoning update, the lion share of that has been completed. We are in the staff review process at this point and time and we have not sat down with Mr. Counts yet to meet on that feedback. We are in the eleventh hour on that issue. As far as these others, the Tangerine area plan was most definitely scheduled for May 17th to come before the Council so we could award that. Not just on this amount, we want to get a hard number and we got that number from Counts. That would be part of your packet and you would know exactly what we are doing on that issue. These other ones, as Mike said, we would certainly bring them before you before we went out. Mike Reuwsaat: Let me make one last comment. When I looked at the demo plan and the work that this community and all of the objectives that you have, the plate is more than full, when you look at design review standards and stuff like that. So that we don't get into the situation we were in before, I would like updates and if there are other things, bring them to us and let us look at them. There may not be a change, Jerry, but I think that is a responsibility of this Council. 24 INUTES O SES " : .' MARANA TOWN COUNCIL Mayor Ham: Any other questions or comments? Would you like to say anything else, Jerry? Jerry Flannery: There is one upgrade in position that amounts to $5,900. That position is a planning technician and it is currently budgeted as an intern/secretary. Basically, it is my desire in working with Public Works to have this technician oversee the development process and putting together a professional committee, of sorts (a Development Review Committee). This would be similar to what the County has, if anyone is familiar with that. They would have meetings on a weekly basis to review projects and keep them in a timely fashion. This position would be doing tracking of development plans, rezones and subdivisions. Anything that is coming through, that person would be the clearing house for it so there is one contact and when they have their meetings they are calling the group together and having organized meetings. That is my goal for this position and I think it is something that we can attain fairly easily. It would make the development process a little more efficient. Mayor Harn: If there are no further questions, we will move on to the Manager's. Let me say that Mr. Davis had to pick up his sister at the airport. Mike Hein: I am pleased to announce that this whopping number of $520,000 plus the $36,000, which brings me to $556,000, is still $55,900 less than last year. It seems like a big number, and I agree, so let me go through it. First of all, the salaries and everything have changed significantly. We are dropping the Assistant Manager position, but we are adding in Dick Gear and Dan Groseclose. In the past those functions have been under finance and now they will be under the Manager. The personnel is myself, Jocelyn, Dick and Dan. The public relations has $25,000 in there for some miscellaneous things, as well as the Marana page. In the past Melanie Larson from the Explorer came to the Council in poor timing and under poor circumstances pitching the idea of Marana acquiring the front page of the paper once a month and it would be hand delivered to everyone in the Town of Marana. Oro Valley has recently, in the last month, gone to that. Melanie has agreed to drop our current ad contract because right now we are sti(I under contract with her to continue the ad campaign with the pictures of the wonderful family and the police officer on the bike. For that same amount of money, we are going to do two trial issues of the Marana page. The first issue will appear some time in May. We will basically have the whole front page and what it will include is a top article, which may be in the future Fourth of July, Referendum elections, direct election of the Mayor and things like that. There will be a human interest story, next month's will be the Mayor signing the closing documents on our home (Thursday morning you'll be doing that). We will have a little feature on Hurvie, I believe, in the first issue. We will also talk about Automated Plating. We will have a Council's corner and we will start with the Mayor. You will rotate so each of you will have an opportunity to write a little blurb. The side bar will be what is coming up in the next month, it will look like it is written by the newspaper and I have a script copy in my office for you to all look at. They wil( do all of the edit, copy and artwork so it looks professionally done. I can get it done and delivered to every resident in Marana for about $1,100 per 25 · ' '" ' ': :MARANATOWNCOUNCIL · · '. "' '. "". '.:" .Apri128,19~8 · . '. month, which is a pretty good deal. Basically, it is an editorial opportunity for us. We are not going to go crazy but we are not going to get that kind of coverage when it comes to upcoming elections and other issues like that. So for free for the opportunity of our ad, you will see it for the next two of months. Hopefully we can do a good job on it. So, that is under public relations and now we are going to add the $36,000. Computer support is very little. Contract labor I assume is for Jocelyn, Dick or Dan being out. Professional services, I'm sure you are all wondering about that. I will say that in years passed, that number has been larger and it has been hidden in the general Town budget. One of the dangers of splitting out Manager and everybody's individual budget is that it succumbs to more scrutiny, but I think it is appropriate and that is why I am doing it. $50,000 of that is basically dedicated to the lobbyist next fiscal year. That will be under the Manager's Department, so Council doesn't get blamed the manager does. The other $100,000 is really undedicated, in the past we have had more than that. For example, we are currently doing an engineering study to resolve the Northpoint condemnation, that is where that stuff gets dumped. Byron Howard would come out of there. Roy was actually concerned that I did not have enough in there, but I think $100,000 will easily accomplish what I envision could even spring up in the next year. I budgeted $5,000 for Town Hall meetings and special events, like ground breakings. We've gotten direction to get out in the community more so this is to provide appetizers, cookies and food. I think that is a good amount. Office supplies were kind of a guestimate. A lot of that is based on the community development department, Dick and Dan. We don't have actual numbers to go off of because it has been all lumped into the Town budget. I think there is enough in there and I think next year you will see that number go down. Between Sandy and I and everyone else we have more than enough money in there. Fuel and oil is minimal. General office equipment is not much. I did budget for an intern. One of the things I am a big believer in is hiring interns from the graduate programs of public administration. It is a good opportunity to get some high level talent. Dick Gear started with me as a UofA intern, leva Bilsens, who is now the senior budget analyst for Tucson Water, was hired under that program. I have been able to get some really good recruits, ~ pay them about $8.00/hour and they work over the summer. They get 9 credits toward their masters program for doing a 400 hour program. They de high level stuff. Roy doubts me, but I know from experience that we are going to get bombarded with questions about sales tax impact on Ina/Thomydale and they can do some econometric modelings and database analysis to track the sates tax because a guy is going to come up to us and say business is down 20% and we can tell him it is actually down 3% and the guy down the street is up. We won't say it that way, but for peace of mind we will want to know exactly what is going on down there. Telephone is between the cellulars and the long distance. Travel and training is high compared to other departments but I think we provided fairly good detail. Part of the problem is being in Phoenix. I estimate that I will have sixteen meetings involved with GADA and bonds and twelve, at least, on water next year alone in Phoenix. I know that is a minimum based on the number of meetings. The conferences I have tentatively scheduled are rural development, I get a lot out of rural development, usually. I budgeted the League of Cities, although I rarely go. There are some things in there for 26 . .'. MINUTES:OI~'COUNCILSTUD. sEssiON'... Dick and Dan, as well as docelyn. So, that is travel and training. Dues and subscriptions are outlined there. Capital outlays Js included in the budget and it is for the new computer hardware and a fax machine pending the move. The move that is contemplated would move the manager to where courts are currently. I would bring Dick, Dan, Jocelyn and an intern over there with me and there should be enough money in the budget to cover all of that. I trimmed $100,000 and put it in contingency because we haven't talked about a contingency for the Town should something come up. I put it in the Manager's budget and I am going to jump ahead a little bit to give you a glimpse of what we are going to recommend out of programmable. We are going to recommend that $267,000 out of programmable be used to fund the Senior Center and we are going to recommend $375,000 out of programmable be reserved for the Police Department for the fifteen vehicles. Then we are going to recommend $26,000 to fund the plans examiner and then the balance of about $269,000 to be at the Council's discretion. Roxanne Ziegler: I thought the police cars were coming out of the Police Department's budget. Roy Cuaron: What we are saying is that we are going to recommend, at the May 12th meeting, that $375,000 of that budget be funded with programmable reserve. Mike Hein: It has to. I'm sorry, we missed talking to you because you were a little late. The Council had asked, "Where was everybody?" With the exception of building, everyone came in under the budget amount so we had to recommend that the extra building plans examiner go under programmable. The Police came in under their amount and we went through some lightening negotiations because they said, "We're going to have drop there and we are going to have to do this and that." Well, Roy and I, working with the Chief, found money to fund all of those things but there was no money for capital, police cars. So, that would have had to come out of the programmable. So, again there is about $220,000+ on the table and that doesn't even mention the $1,000,000 in programmable and we probably won't, we can maybe save that for a rainy day. Right now, unless you come up with specific projects, we will recommend that as additional funds. But, it is unreasonable to have no contingency and so I stuck $100,000 in my budget as opposed to every single department's budget because I think it makes it harder for them to request contingency when it is out of the Manager's budget. Last year, I believe the extra $100,000 was through professional services and annexations. Mayor Harn: Are there any other questions? Hearing none, do I hear a motion for adjournment? 27 · '"" "': """ ' ~SSlON i..'" .i i:'. '.: :': .'"' ···MINUTES OF COUNCIL ·STUDY S ... .' · · · · MARANA TOWN COUNCIL ..' · .......'.. "..' "· " April 28, 1998 VI. ADJOURNMENT A motion was made by Vice Mayor Sutton, seconded by Mike Reuwsaat. to adjourn. The motion passed 7/0. Roy Cuaron: Mayor, could ~ ask you to give me your budget reports from March back so I can input the Admin budget, CERTIFICATION I hereby certify that the foregoing minutes are the true and correct minutes of the Marana Town Council he(d on April 28, 1998. I further certify that a quorum was present. 28