HomeMy WebLinkAbout12/02/1997 Regular Council Meeting Minutes DECEMBER 2, 1997
PLAE AND E
Marana Town Hall, December 2, 1997
CALL T_O__ORDER
By Mayor Ora Harn at 7:'10 P.M.
II.
PLEDGE OF ALLEGIANCE
Led by Mayor Ora Harn
INVOCATION
Led by Mayor Ora Harn
IV. ROLL CALL
COUNCIL
Ora Harn
Bobby Sutton, Jr.
Ed Honea
Herb Kal
Sherry Millner
Michael Reuwsaat
Roxanne Ziegler
Mayor
Vice Mayor
Council Member
Council Member
Council Member
Council Member, excused
Council Member
STAFF
Michael Hein
Jocelyn Entz
Roy Cuaron
Dan Hochuli
Sandy Groseclose
Jane Johnson
Dave After
Dave Smith
Floyd Foster
Assistant Town Manager
Exec.Asst. to Town Manager
Finance Director
Town Attorney
Town Clerk
Human Resoumes Director
Public Works Director
Chief of Police
Water Operations Manager
V. APPROVAL OFAGENDA
A motion was made by Roxanne Ziegler, seconded by Bobby Sutton, to move
item G and item I to follow item A. The motion carried 6/0.
VIi. ACCEPTANCE OF MINUTES
Minutes of Regular Council Meeting - November 18, 1997
Minutes of Special Council Meeting - November 19, 1997
A motion was made by Roxanne Ziegler, seconded by Bobby Sutton, to accept
the minutes of Regular Council Meeting, November 18, and Special Council
Meeting, November 19. The motion carried 6/0.
VH. CALl, TO THE PUBLIC/ANNOUNCEMENTS
Dave Atler: For those of you who have not heard about it, the Town of
Marana's first annual Tree Lighting Festival is going to be held this Saturday
from 2:30 - 5:30, next to Town Hall. We are going to have musical
entertainment, tree ornament making, hay rides, sing-alongs, face painting, and
more. Marana PD and Northwest Fire Department are going to have safety
displays. We hope everyone comes out and joins us for the fun.
Jane Johnson: Mr. Davis and I attended a Ceremony, by the City of Tucson's
Supervisor's Academy, on November 20th to congratulate John Thomas, of the
Building Department. I would like to go on record thanking the City of Tucson,
who graciously made room for John, because we do not have the ability to do
that type of extensive supervisory training, at this time. He attended a 14 day
series with the City's lead trainer. I hope this will become a pilot program that we
build on and we will be able to use their expertise to further train our particular
people. We want to congratulate John in his successful completion of this
comprehensive program.
VIII. STAFF REPORTS
No action taken.
IX. GENERAL ORDER OF BUSINESS
A. Consent
1. Resolution No. 97-118 - Request for Liquor License Transfer by
ABCO Foods Store #688
2. Resolution No. 97-119 - Request for Extension of Premises/Patio
Permit by Circle K, 4900 W. Ina Road, Marana
3. Resolution No. 97-121 - Approving Off Track Betting at Screwy
Louies's, a Sports Entertainment Establishment Located Within the
Limits of the Town of Marana
A motion was made by Vice Mayor Sutton, seconded by Roxanne Ziegler, to
approve the Consent Agenda, as written. Motion carried 6/0.
Resolution No. 97-117: ReQuest for a Number 7 Liouor License Transfer
- Pacific Golf Management, Inc. (The Links Golf Course) 8480 W.
Continental Links Drive, Marana, Request for Transfer of a Liquor
License for Beer and Wine
Mike Hein: Resolution 97-117 is a request for liquor license transfer by
Pacific Golf Management. Again, this is a transfer and staff is recommending
approval at this time.
A motion was made by Ed Honea, seconded by Vice Mayor Sutton, to
approve Resolution No. 97-117 for the issuance of the Number 7 liquor
license for Pacific Golf Management, Inc. Motion carried 6/0.
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I~esolution No. 97-122 - Request for Special Events Liquor License by
United Way of Tucson for the Grand Opening of the Links on December
15 and 16, 1997
Mike Hein: This, again, is another resolution for a liquor license. This time,
a special event liquor license for December 15th and 16th, which is the Grand
Opening for the Links at Continental Ranch. Mr. Simm is the applicant, on
behalf of the United Way Greater Tucson, they are representatives of the
event. I think Mr. Simm is in the audience. Staff is recommending approval
on this.
A motion was made by Roxanne Ziegler, seconded by Vice Mayor Sutton, to
approve Resolution 97-122 for the issuance of a special event liquor license
for the Links at Continental Ranch. Motion carried 6/0.
B. Family Fun Day and Fireworks Show at Sportspark - Discussion/Action
Mike Hein: The Mayor and staff have been meeting with representatives of
the Sportspark, Mr. Munson and Mr. McCoy, who are in the audience. They
previously attended a meeting in October and came before you to get input
from the Council and some direction as to the future of the Fourth of July
event in conjunction with Sportspark. You have the proposal that they have
submitted in writing to you. It is there for your consideration and the
representatives are available in the audience, should you have any
questions.
Ed Honea: Looking at your proposed budget, it states that there were some
losses in the previous years, but, it doesn't show any income from
concessions. I know there is tremendous concessions on those days, I know
because you have to stand in line to get there. Where is that money going?
Jim Munson: The budget presented to you is based on the event itself. It
has not taken into consideration the concession sales for the particular day.
Yes, there are a good deal of concession sales, but, not as well as one might
think. For instance, we track all of our visitors on a per cap basis, and while
we were projecting somewhere in the neighborhood of $4.00 per person per
cap basis, it was only in the neighborhood of $2.60 per person. There are a
number of reasons for that. In answer to your question, the concession
operation of our business is what we call our profit center. Our basic
business plan dictates that the fees for the activities, the event, leagues and
teams that play out there are to cover our costs. For our investors, the profit
center becomes the concession area. Typically, we do not involve any
concession income in our proposals or activities that we do inside or outside
ourselves. It is considered separate on anything we propose to do within our
company or outside activities.
Ed Honea: Is it fair to say, your company has never lost money on a Fourth
of July event if you take concession into account? You have not had a red
line at the bottom of the event.
MINUTES OF REGULAR COUNCIL MEETING
Jim Munson: Doug McCoy does all of these figures for me, but, as I
understand it, the first year was the only year we took a loss on this particular
event.
Mike Hein: I thought maybe, for the benefit of the public, we could give a
brief overview of the proposal. We have had continuous discussions
regarding the quantity and quality of the fireworks display and the lay out of
the grounds. While general recognition was made that some of the aspects
of the event, such as parking and circulation in and out of the event, were
improved, there were still some concerns. To develop a long term
relationship with Sportspark, they were asked to submit something in writing.
Sportspark is asserting that they experienced a loss of about $7,500.00.
Doug McCoy: Without concessions on this particular case, as you look at
the estimated income and expense over the year, the first year was a
negative $11,120.00. Our total concession income that year was
$13,000.00. That is total income, which does not include any direct costs of
sales, labor, tents, etc. With concessions out,, in terms of just taking the
event, we are about $18,000.00 negative for those three years. During that
time, estimated concession sales were about $50,000.00. If you take out the
direct cost of sales, labor, and servicing the public in those areas, our profit
has been about $25,000.00 over those three years. On the average, about
$2,500.00 in concession profit is what we have made over those three years.
As Jim said, we do separate out our concessions because that is our profit.
We discipline ourselves very strictly to do that and we have to evaluate what
we do on that basis.
Jim Munson: Anytime we suggest that the total overall day was a loss for
us, we are suggesting that the total overall day was not up to the standards
that we would like to see it, considering the amount of time vested in the
event. Also, that same type of logic has deterred us from putting on the kind
of event that we think is desired, based on meetings with staff and general
public. For example, the fireworks show was said to be "...not up to snuff."
We know the City of Tucson increased the quantity of their fireworks show by
exactly the amount that is spent on the Town of Marana's total fireworks
show. Based on meetings with staff and some Council members, it was
indicated that there was a desire to have the fireworks show stepped up a
little bit. That is basically what this proposal says. We are saying that if that
is the desire, we would like the Town of Marana to control the quantity,
quality, level, or whatever you want to refer to it as, of the fireworks show.
The Town of Marana should dictate that by the amount of subsidy they want
to put toward that event. That is basically what this proposal is asking. If the
Town of Marana says the fireworks show is fine the way it is, so be it. If the
Town of Marana says they want to see it increased in quality, so be it. tt the
Town of Marana says they want to back off a little bit, that is fine too.
However, there is a level that you can't go below. I don't think that is the idea
of the Council, though.
Mayor Harn: Mr. Davis, Jocelyn and I went down to Sportspark to talk to Mr.
Munson and his crew. We walked around and talked about some
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suggestions and changes on where the Council would be. We talked about
putting together something so when the visiting dignitaries get there, people
would know where to go. We would have a certain time that people would
know when we were going to do something public, like some announcements
or something. We have worked out some things that we think can improve
the overall way the program is put on. Mr. Munson promised he would work
with us and our staff if we want to do something different than we have done
before.
Vice Mayor Sutton: I was looking at the figures on sponsorship. With the
event getting the notariety that it is getting, there is a drop off from 1996 to
1997. I am assuming the numbers were better in 1997 as far as the amount
of people that came in. Was there a reason for that sponsorship tailing off?
Doug McCoy: Our major sponsors were Pepsi, one of our marketing
partners, Unique Cellular and the hospital. We did have some sponsorships
from some of the developers in the area, but not to the level we had the
previous two years. The first year we had two developers as major
sponsors, the second year we only had one. This past year we did not have
any developers as major sponsors. We did have U.S. Homes and a couple
others as participating sponsors.
Mayor Harn: How is a major sponsor different from a participating sponsor?
How much would a major sponsor contribute?
Doug McCoy: We are asking $3,500.00. Last year we got $7,000.00 and
then this year we only received $2,500.00.
Vice Mayor Sutton: That is probably not going to get better because the
more they build out the less they need to promote their property. If we do
this, is there a way to off set the amount the Town puts in by additional
sponsorships that we could help line up.
Doug McCoy: Sure, I think that would be a possibility we could look at. We
have tried to get a zero balanced budget on the event itself, without
concessions. I think our budget for next year calls for $15,000.00 in
sponsorships. We hit that two years ago, but we did not hit that last year.
The Town has always been really good about helping us obtain some of
these sponsors.
Herb Kai: It looks like you are asking the Town to increase the fireworks
display. Would there be an opportunity for Sportspark to share in that
increase? It is a good event, and it is in your best interest to have a good
fireworks display, as well as the Town's. Your concessions will suffer without
the event and everything seems to go down hill if we don't keep this going.
Would Sportspark be willing to cover half of the increase?
Jim Munson: I would not say that because the fireworks have remained
consistant, or level, we have gone down hill. It is just the opposite. We had
the same fireworks show, in dollars and cents, as we had last year and the
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attendance has gone up. The bottom line is that we had a $15,000.00
fireworks show. That turns into an $18,000.00 fireworks show if you count
our 20% commission, which we said we don't want. Put it towards the
fireworks show, to increase it by $3,000.00. The Town of Marana has given
a $10,000.00 sponsorship to the event, and it has been a $15,000.00 show.
What we are saying is that we think you want the fireworks show to go up.
To this point in time, the event itself has subsidized that by $5,000.00. We
would not need to be here if we said lets increase the admission by so many
dollars or raise the price of the kiddie rides. We have not done that because
you said you did not want that. You said you wanted this event to be
reachable and tangible to the average family. We used, as a guideline, that
a family of four could come out and have a good time and participate in the
activities with a $20 bill. In answer to your question, I am not sure we would
be interested in subsidizing any increase, as Sportspark. However, if you
wanted to talk about increasing the cost of something, that could be a
possibility. I can't answer that question, per say, if the question is if
Sportspark is willing to subsidize an increase.
Herb Kal: I think it's rather simple. Either Sportspark can help the Town of
Marana with half the cost increase or you can't, that is what I am asking you
to do.
Jim Munson: This proposal doesn't indicate that.
Vice Mayor Sutton: Jim, you are right. The reason I supported this is to
keep the cost down to get into the event. In my opinion, the reason the Town
gets behind an event is so the residents and citizens of the Town will be able
to enjoy something and mingle with their neighbors. I tend to agree with
Councilman Kal, in that, you are asking us to double our contribution yet you
are only going to increase the fireworks display by 25%. You have been
subsidizing the $5,000.00. A better fireworks display is going to draw more
people. That is the hope of a for-profit corporation, you want more people in
there using your concessions, since that is your profit. If you still subsidize
the $5,000.00 and we increase to $15,000.00, is that going to keep it the
same or will we see some increase in the show?
Doug McCoy: Let me answer that because I think we are dancing a little bit,
frankly. We have made money on concessions, that is our upside. Our
downside is that one of these Fourth of July's, it could be next year, the fifth
year, sixth year, etc., we get rained out. Then we are going to wipe that
concession profit completely out. We have taken measures to limit the
Town's exposure in that particular situation to $2,500.00 with the fireworks
supply. Unfortunately, we will have staff there and tents set up, etc. I
calculated it out last year and if we were to have that situation, we could be
putting $20,000.00-$25,000.00 at risk. Some of it is just going to be spent.
There will be carnival games there, staff, etc. We have an upside, but we
also have a pretty good risk, or downside, as well. That is the reason,
frankly, that we are coming to you saying that we need a little bit more of an
upside to this. Somewhere down the line, we are going to take a hit. If we
take a hit next year, we are going to be in the negative for the next four
years. It is an outdoor facility, we run that risk and we understand that. We
rained out the last two days. We have an exposure that the Town does not
have and it is a pretty big hit if it happens.
Vice Mayor Sutton: I understand that, and that makes it clear. I didn't know
what the amount was, I knew you had a downside somewhere. We budget
the amount every year, if we budgeted it rain or shine to help indemnify you
for your possible loss, would that help at all?
Doug McCoy: That may be a qiud pro quo on something like this, sure.
Jim Munson: It seems like it would make sense.
Doug McCoy: I don't know that I articulated the risk. You have to weigh the
upside against the downside in this kind of business.
Mayor Harn: My concern is that we put on two events per year that are for
the public. We put on the Founder's Day program, on the north side, and we
put on the fireworks display, on the south side. It seems to me that we
budgeted $20,000.00 for the Founder's Day event. I would say that if the
Town got some sponsors to help out, we wouldn't have to put up the whole
$20,000.00. I feel that this is an event that is not going to break the Town
and it is a decent event. I support it whole heartedly.
Roxanne Ziegler: I feel the same way you do, since Marana has only these
two events. I wouldn't want to do this every year.
A motion was made by Roxanne Ziegler, seconded by Mayor Harn, for the
Town of Marana to increase the monetary contribution for the 1998 fireworks
display at Sportspark from $15,000.00 to $20,000.00. Such funds should be
allocated from the Town's contingency fund. Additionally, in the event of
inclimate weather, the Town shall be reimbursed the $20,000.00 minus the
$2,500.00 for actual expenses incurred. Motion carried 4/2. Ed Honea and
Herb Kal voted no.
Vice Mayor Sutton: It was said in the discussion that if we help with some
additional sponsorship then it would off set the amount that the Town would
contribute. Could we amend the motion to add that?
Roxanne Ziegler: Yes, that would be fine.
Ed Honea: If we get major sponsors, dollar for dollar, ours will change. If
we go from $10,000.00 to $20,000.00 and we get $7,000.00 worth of
sponsorship, then ours will go down to $13,000.00. Is that basically what we
are saying?
Mike Hein: I think we need a point of clarification. Is the intent to get
sponsors to support the Town's payments for the fireworks or to get sponsors
for the whole event? I think they may have a concern if we are talking about
allocation of sponsorships for the event. My understanding is that the motion
is to increase the funding to $20,000.00 for 1998.
Mayor Harn: The motion on the floor, right now, is that the Town might be
able to solicit some people who would like to join the Town with our
$20,000.00. We would try not to undercut what Sportspark is doing with
sponsors. If we went out and brought in an additional $5,000.00 of
sponsorship, to go with our money, then we would.
Jim Munson: I would frame that a little differently because we work real
closely with the Town in finding these sponsors. We bring some to the table
and the Town brings some to the table, that has been the history of the
event. I would say anything in excess of $15,000.00 would go back to
Marana as a rebate on the show.
Dan Hochuli: The motion was made by Councilwoman Ziegler. I
understand that we don't need to do it by motion if the move is in the second
and they both agree to amend their own motion. What I understand the
motion to have been was that the Town would sponsor $20,000.00 for the
fireworks show with the difference to be made up out of contingency funds
and that the Town would be reimbursed all but $2,500.00 in the event of a
rain. I believe, Councilwoman Ziegler has amended her original motion to
also add that if the sponsorships exceed $15,000.00, those over and above
$15,000.00 would be used to decrease the amount of participation by the
Town. The second was made by the Mayor. (Roxanne Ziegler and Mayor
Harn are both in agreement of the motion as just read). Then we don't have
to vote on the amendment, we are voting on the motion as just stated.
C. Municipal Facility Location - Consideration/Direction
A motion was made by Ed Honea, seconded by Vice Mayor Sutton, that the
three sites, originally chosen by the committee, and the Hum property be our
focus. Further, we instruct staff to instruct the owners of these properties to
make presentations and for the staff to go into more detail on the studies of
these four properties. Motion carried 6/0.
D. Santa Cruz River Flood Control Levee - Preliminary Approval of the
Intergovernmental Agreement (IGA) Between the Town of Marana and
Pima County Flood Control District Relating to Development of the
Lower Santa Cruz River Flood Control Levee Project
Mike Hein: Item D is consideration of preliminary approval of an IGA
between the Town of Marana and Pima County Flood Control District relating
to the development of the Lower Santa Cruz River Flood Control Levee
project. It is unfortunate that Mr. Davis is not here this evening, he is very ill.
He has done a lot of work on this with Mr. Huckleberry from the County. This
represents a lot of effort and time. We are asking that you give preliminary
approval, we do not have ail of the exhibits done to the IGA, but believe it is
substantially complete. In your packet, you will find a draft of the IGA.
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Basically, it obligates the County to build the levee, and obligates the Town to
provide an instrument for repayment of the levee for $500.00 per acre that is
developed, upon the time of issuance of a building permit. One of the major
concessions the County made was to exempt properties two acres and under
in the benefitting area. What this means is that the $500.00 per acre, which
will not cover the full cost but will be a contribution toward the cost, is for
major developments and excludes small or individual property owners.
These small or individual property owners have their "nest egg" and they
intend to develop their home site as soon as the levee goes and the area is
removed from the Santa Cruz Flood Plain.
Mayor Harn: I can not see making a motion on this and preliminarily
approving it if we are still going to hold it subject to final review and approval
with exhibits. The other thing that concerns me is I would like to have Mr.
Huckleberry and Mr. Davis here. I would just feel better about it if they were
here. Would the Council be willing to continue this item for future agenda?
Herb Kal: I don't have a problem with continuing this item, but, I think we
are trying to keep this issue on a fast track, in a way. I think what staff is
looking for is a preliminary approval.
Roxanne Ziegler: I talked to Mr. Hein about this today, and I placed a call to
Mr. Huckleberry. When I read this, I understood it. It was very well written
and I congratulate whoever wrote this. I called out a few things I would like
to have tightened up. But, it is well written, workable, usable, it is friendly
and I was ready to make a motion on it. I appreciate how well this was put
together.
Vice Mayor Sutton: Will this come back before us with the exhibits, later?
(yes) Then, lets make sure Mr. Huckleberry and Mr. Davis are here for that
and lets give them the direction they need to get what they have done here.
A motion was made by Vice Mayor Sutton, seconded by Ed Honea, to give
preliminary approval for this item and to request Mr. Huckleberry and Mr.
Davis be present for the final approval with exhibits. Motion carried 6/0.
Mike Hein: The reason we are here for preliminary approval is to give Mr.
Huckleberry and the County the assurance that the Town is in agreement,
conceptually, with the agreement. As far as Mr. Davis' opinion on it, there is
a letter attached to it, dated November 19th. The letter was drafted with our
legal counsel and staff, and signed by Mr. Davis, which points out Mr. Davis'
concerns. Also, you received a letter from Mr. Huckleberry, dated November
25th. stating that they approved all of the concerns that Mr. Davis raised in his
letter. The reason we are looking for your preliminary approval is similar to
your concerns about seeing Mr. Huckleberry eye-to-eye. He wants to make
sure that he can trust Town staff's representation that the Council agrees to it
in concept. I talked to Mr. Keenan, today, about some of the concerns in
terms of the loose ends. Specifically, control over any activity within the flood
plain, within in the Town. He reassured me that they would agree to any
language that tightens it up. In other words, they don't want control over a
carport that might be developed in the flood plain. They are concerned about
any activity that could jeopardize the integrity and stability of the levee, and
change the drainage. They are willing to tighten that up, as well. The
preliminary approval is to reassure the County that there is general
consensus with the Town that the agreement is in good faith. The exhibits
are important to identify the final areas and to note on the exhibit the
exclusion of the two acre parcels and under. When we formally move
forward to assess those properties and develop an impact fee in
development agreements with developers, we will identify those parcels for
the retainment schedule. It has been a long dance and we are just trying to
give them some reassurance. It will come back to Council and I will inform
Mr. Huckleberry of the strong desire of this Mayor and Board to have him
present for that day.
Herb Kal: Mike, we talked about the $500.00 reimbursement to the County.
I suggested that we try to ear mark the $500.00 for Phase II and Phase III.
That was a pretty hard sell point to the County. Could you elaborate on that?
Mike Hein: The point was made that the $500.00 per acre would not come
close to repayment for the capital cost for the construction of the levee. The
idea was to set aside that contribution for a Marana ear mark for future
phases. Since this is Phase I, A and B, it still leaves Phase II and Phase III
to do in the future and the idea was to set that aside. Their assertion is that
the $500.00 per acre will go toward the retirement of some of the bonds that
have been led in support of this project. Mr. Bronson and Mr. Huckleberry
are going to develop a similar impact fee which they expect will be greater
than $500.00 per acre in the unincorporated area. They are going to put that
back in the Flood Control District toward the retirement of the debt. There is
some general obligation, if you look in the recitals, that the sources of funding
come from some State and Federal granting, some bonds and some general
operating of the district. That is what the $500.00 per acre will go toward.
Mayor Harn: They did agree that the people that participate in giving the
easement, or right-of-way, will get a one-to-one?
Mike Hein: That was one of the concessions, meaning that if Vice Mayor
Sutton owned 10 acres and needed to dedicate 1 acre for the levee project,
he would have 7 remaining acres and theoretically he would owe 7 times
$500.00 but they have agreed to cut an additional acre off of that. That is in
consideration of the dedication. Yes, they give a one for one credit.
E. Resolution No. 97-120 and Ordinance 97.35 - Amending Chapter 11,
Offenses, Article 11-3 of the Town Code to Reflect Changes in Federal
Law Regarding Minors; Loitering and Curfew Ordinance.
Discussion/Action
Dan Hochuli: A ruling came down out of Federal District Court in San
Diego, which held a San Diego Minor Curfew Ordinance unconstitutional.
There are some provisions in that ordinance which were very similar to the
provisions in our ordinance, as well as all of the other municipalities across
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the Country. So, rather than attempt to enforce our ordinance and then find
out later if it is constitutional or not, the Legal Department is recommending
that we amend our cur-Jew ordinance to bring it more closely in compliance
with that finding in San Diego. Essentially, what we have done is remove
some vague language that the District Court in San Diego indicated as too
vague. For example, loitering, wandering, idle stroll and playing were too
vague. The law can not be so vague that it doesn't put the public on notice
as to what they are not allowed to do. The concept of that Court was, by
saying that juveniles can not loiter, wander, etc. after a certain hour was not
concrete enough. The corrected language is not necessarily our language, a
Jot of jurisdictions were making these changes at the same time. An
additional change, made at this time, was to find the person in violation to not
just be the minor but also the parent or guardian. So, if my 13 year old is in
violation of the ordinance, so am I and so is the proprietor of the institution
where he is. If he is hanging out at the Circle K at 2:00 AM then there can be
three citations, one to Jeff, one to me and one to the proprietor of Circle K.
Other than that, we just tried to bring it in to compliance with what we believe
the current state of the law to be and make it more easily enforcable by the
Town. The Department recommends the adoption of Resolution 97-120.
A motion was made by Vice Mayor Sutton, seconded by Sherry Millner, to
adopt Resolution No. 97-120 and Ordinance No. 97.35. Motion carried 6/0.
F. Employee's Ability to Transfer Employer Portion of 401 Retirement
Funds - Discussion/Direction
Jane Johnson: The item before you is for informational purposes. The
Town provided, in the past, a retirement for certified police officers. That has
been since the incorporation of the community. On July 1, 1995, the Town
opened a mandatory retirement plan for the rest of the Town employees.
Recently, Roy and I reviewed the plan and we are here tonight to discuss
what we found. I asked him to give you a review of the process that you
used to pick retirement plans.
Roy Cuaron: When the Council was exploring the retirement plans, there
were basically two plans. One was the Arizona State Retirement Plan,
known as the Defined Benefit Plan, and the other was the 401 Plan, known
as the Defined Contribution Plan. For a lot of different reasons, the Council
chose the 401 Plan. One of those reasons was it allowed the employees a
greater flexibility in allocating their funds. That was important in the Council's
eyes, but by the same token, the Council was concerned that the employees
did not loose all of their moneys to bad investments. At the time Council
adopted the plan, we were under the belief that the employer portion of the
retirement plan would be invested in a safe, conservative fund so there would
be very little risk. Unbeknownst to us was, the plan does not have any
mechanism to guarantee that the employee can not touch the unvested
portion of the funds. That is, currently under the plan, the employer portion
may be reallocated by the employee. That is not what the Council had
thought to be the case when we adopted the plan. What we are doing today
is informing you that what our understanding at that time is not what the
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current situation is. We are not suggesting that it has been problematic up to
this point, but, because the Council did have that concern when the plan was
adopted we felt incumbent to bring it to your attention at this point.
Mayor Ham: Have you and Jane put together any kind of recommendation
of anything you think we should change it to?
Roy Cuaron: The recommendation, I think, from Jane and my perspective is
to not do anything with the plan, leave it as is. If we sense that it is becoming
problematic, then we will bring it back to the Council and ask for further
direction. We haven't seen any signs of any abuses. I think it is our
recommendation to just leave the plan alone. We just wanted to make you
aware that the provision we thought was in the plan is not there.
Roxanne Ziegler: would like to take his recommendation. If it is not
broken, lets not fix it. I do ask that you look at the quarterly reports from
ICMA to insure that there is not any of that going on.
H. Additional Stafffor Building Department
Mike Hein: Item H is a request for additional staff. You have the staff report
in your packet which explains and provides attachments which show the
rapid increase of activity for permitting over the last year, which gives a need
for additional staff. Specifically, we are asking for authorization for one
additional building inspector and one clerical assistant to the permits
department. Staff is recommending approval at this time. It is consistent
with staffing levels and ratios and other jurisdictions. We are recommending
allocation of the $42,000.00, which would be the full cost, including benefits,
vehicles, etc., from the Town's contingency fund. I believe, to date, we have
not used the contingency fund, with the exception of the discussions of
fireworks earlier. This would be the first reallocation of the contingency fund
this fiscal year.
Roy Cuaron: I want to verify that we have taken $5,000.00 from the
contingency for GTEC. Council approved an increase in GTEC's
contributions several months ago.
A motion was made by Ed Honea, seconded by Vice Mayor Sutton, to
reallocate $42,000.00 from the Town contingency fund to the Building
Services Department to fund two additional staff persons and related vehicle,
equipment, supplies and expenses. Motion carried 6/0.
Sherry Millner: If this $42,000.00 is for two people, they will only be making
$21,000.00 per year?
Roy Cuaron: The $42,000.00 represents two staff positions budgeted for
the balance of the fiscal year, which is approximately 6 months. It will
include a vehicle, fuel and oil, and other related supplies, and expenses
associated with the personnel contract. The numbers were derived from our
existing salary plan. It is an entry level salary for those positions.
MINUTES OF ~GUL~ COUNCIL MEETING
$22,000.00 is salary and wages, $4,400.00 is employee benefits and the
remaining $15,600.00 is for the vehicle and additional miscellaneous.
Sherry Millner: I am trying to look at this and see if we are paying these
people enough to live on. Looking at the total cost, what they have to live on
is not a lot.
Herb Kal: We are growing and we need the employees, but if we have a
slow down in economy and we have all of this staff, who makes the decision
to terminate? It is easy to hire someone, but then, if something goes wrong
you shuffle them around somewhere else. Mike, can you shed a little light on
that?
Mike Hein: I knew someone would ask that question, I should have asked
Jane. We don't perceive a slow down in the building industry for some time;
as far as the level of permits, at least two years. There are two options,
which I am not familiar with, and I will defer to Jane on them, on the Town's
lay out policy, if they have a lay out policy. Another way is staff attrition, or
reassignment in the different areas.
Jane Johnson: Yes, we do have some basics for a lay out policy. We do
not have it flushed out very much because we haven't had to think about it.
We will do everything we can to shuffle people around with transfers and that
sort of thing. At the rate we are going and with the requests I get weekly for
more staff, I don't think that is going to be a problem any time soon.
Certainly, it is a concern and we do have a procedure.
Herb Kal: I just want to make sure that if we do end up having to down size
our staff, we don't have a whole bunch of law suits.
Jane Johnson: That is a reasonable concern and it is very high on my list. I
want to be sure not to over staff. On the other hand, if we can't get the job
done, we need to think about that, too. We do have in place the basics for a
lay-off contingency.
Mike Hein: If I could add to that, in general, I think payroll has been in the
discussions with Mr. Davis and Jane about levels of staff in the different
areas. I know Council has addressed this concern in the engineering aspect.
The Town has, instead of staffing an engineering department, been going to
outside consultants because they realize that at sometime that demand is
going to be on a down side and we didn't want to have the level of
permanent staff required. In this case, we are fairly confident and hopeful
that this level will maintain itself and possibly even increase if we start
working with developments such as Sahuaro Springs, Twin Peaks, the
Dorkin Property and the flood control levee project, once it gets underway.
J. Mayor and Council's Reoort
]3
Sherry Millner: I was invited to represent the Town of Marana at the
Change of Command Ceremony at the Base for Lieutenant General
Campbell. He has been replaced by Lieutenant General Lansford E. Trapp,
Jr., who was the Wing Commander here two years ago. I attended that
ceremony with Congressman Kolbe and Sharon Collins and we had some
time to talk, which was great. I also talked to the new General and he is
interested in keeping up the relationship with Marana in the Military
Community.
Vice Mayor Sutton: I met with Bob Mitchell, in Casa Grande, and I will be
coming back to you at a later time to tell you what they are doing up there. It
is real innovative and could help us with some issues in Marana.
Ed Honea: I would like to give a lengthy report on the slow sand process at
the next Council meeting.
Mayor Harn: Mr. Davis and I met with Steve Jewitt, who is the new
representative for Governor Hall for the Southern area. Mr. Jewitt came out
for a short discussion and when we got to talking, we talked right through the
Agenda meeting. It was a very enlightening discussion and I am very
impressed with Mr. Jewitt and how he represents the Governor. He informed
us that he has been given an official position on the Governor's staff in
Phoenix. This means that when things come to Tucson, from Phoenix, if
Tucson needs to do anything, we will no longer have to go back and ask for
permission. I was very pleased that he took the time to come out and meet
with us. I found him to be very interesting. He is the kind of person who will
admit to you that he doesn't know everything and that he has not been in
government before, but he is learning. He said he came to listen, not to talk.
I also want to report that I was out to Watts with a group of people from the
Air National Guard and the Army National Guard. I was privledged to see
their new promotional films for both the State of Arizona Guard and local
Guard Units. In everyone of the films I saw, they identified themselves as
being in Marana, Arizona. The State promotional film said they were
stationed in Marana, Arizona, northwest of Tucson. I was delighted to hear
that. In the discussion, both Adjutant General's Assistant and the
Commander at Watts said they would like to come before the Council and
give a presentation of what is happening in our area. These people are very
supportive of our community. Just recently, the Army and Air National
Guards from Watts brought 4,000 pounds of food to the Marana Community
Food Bank. They want to be a part of Marana. At the 40th Anniversary of the
Marana Health Center, they flew in an Apache helicopter and put it on the
Marana Health Center property and left it there all day with two airmen to
illustrate the helicopter. We brought it out for the children but we had to beat
the men of the neighborhood away so the children could see. I think they are
good neighbors and I hope that you all would permit them to make a
presentation. I attended the Chamber of Commerce luncheon at TRICO
Electric. I want to keep involved with the Chamber of Commerce and I am
concerned that the participation there is not quite as good as I would like. I
think that more council members and staff members need to promote it and
]4
support it. I also attended the Pow Wow at the Chamber of Commerce. It is
an exciting event, and if we could develop it and get it going well, it could be
a big drawing point to North Marana. I enjoyed it very much and the food
was great. I would like to see it grow.
Roxanne Ziegler: I would like to attend one of the lunches for the Chamber
of Commerce, but I work on the south side of Tucson and to get up here for
lunch and go back it is a 40 minute drive up. I know you have it once a
month, but maybe one month you could have it in the evening. I would
dearly love to attend but I just can't do it at lunch.
K. Mana_oer's Reoort
Mike Hein: I believe Mr. Davis signed a closing on one of the first homes in
the building program. Thanks to the efforts of Mr. Groseclose and that
program, it was just in time for the holidays.
X. FUTURE AGENDAITEMS
Vice Mayor Sutton: We had a letter in our boxes regarding the high speed
on Silverbell, with the kids coming home from school and some other issues.
I would like to bring that to Council to maybe go over some options.
I. ADJOURNMENT
A motion was made by Herb Kal, seconded by Vice Mayor Sutton, to
adjourn. The motion passed 6/0.
CERTIFICATION
I hereby certify that the foregoing minutes are the true and correct minutes of the
Marana Town Council held on December 2, 1997. I further certify that a quorum
was present. ~,,~'~ ~
_ EC,OSE. Tow. C,ERK