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REGULAR COUNCIL MEETING
MINUTES
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, October 6, 2009, at or after 7:00 PM
Ed Honea, Mayor
Herb Kai, Vice Mayor
Russell Clanagan, Council Member
Patti Comerford, Council Member
Carol McGorray, Council Member
Jon Post, Council Member
Roxanne Ziegler, Council Member
REGULAR COUNCIL MEETING
CALL TO ORDER AND ROLL CALL
Mayor Honea called the meeting to order at 7:04 p.m. Council Member Ziegler was
excusea~ All other Council Members were present
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE
Mayor Honea led the pledge of allegiance and moment of silence.
APPROVAL OF AGENDA
Motion to approve moved by Council Member McGorray, second by mice Mayor Kai.
Motion carried unanimously 6-0.
CALL TO THE PUBLIC
David Morales discussed his concerns that the Council is not considering the question of
the town becoming a city to the voters. He suggested to Council in 2011 during the
election cycle that the question could be put on the ballot of becoming a city. Option was
the word he wanted the Council to consider. He urged Council to put this question on the
ballot.
PRESENTATIONS
P 1: Presentation: Relating to the Marana Regional Airport; providing an update on the
Marana Regional Airport three to five year short range plan with the objective of
increasing aviation and non-aviation revenues and asking for direction
Barbara Johnson introduced Orville Saling to make the presentation with specific
reference to the downturn in economy requiring the airport to become an enterprise
project to relieve some of the funding burden on the town. He suggested that bringing in
corporate aviation would bring competition and promote growth opportunities. He noted
that the plan is to grow the airport about 5 percent per year. Toward this end is the
development of a corporate aviation center with light industry and an opportunity to
spend more time in Marana. He asked Council for concurrence to go forward and
explore these possibilities. Council Member Clanagan asked about the staff on hand to
assist with the goals and why a manager isn't being hired. Mr. Davidson addressed this
and noted that this is a salary modification from the previous airport director's position.
He stated that the position is a critical position for the future development and is very
labor intensive. The position requires someone with more aviation experience than is
currently available on staff Mr. Saling noted that the position requires someone with
more operational rather than development experience. Vice Mayor Kai noted that many
improvements at the airport came from grants and there is a need for someone with the
ability to attract these kinds of funds. Mr. Saling addressed that there is staff currently
able to get the grants, but that the availability of grants are few and far between now.
Council Member Comerford asked what the timeframe is to bring this back. Mr.
Saling noted three to five years to get the project built up, but we should not let too much
time pass so that we're prepared when the economy picks up. Mr. Davidson added that
the airport discussions have been tied into the economic development roadmap for future
development and that it is important to continue to invest in the airport
ANNOUNCEMENTS/UPDATES
PROCLAMATIONS
(1) Arizona Cities & Towns Week (2) Marana Senior Center Day
Ms. Bronson read this proclamation into the record. Marilyn Payton, recreation
coordinator at the senior center, thanked the Council for their support.
MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS
Council Member Clanagan -spoke about the rededication of Sportspark to Mike
Jacobs Sportspark.
Mayor Honea -attended the Oro Valley State of the Town event; discussed business and
industry and the partnership with the Chamber of Commerce -the Mayor toured the
Johns Manville, Krebs Engineering, and Lasertel facilities last week and noted that
Marana is not only a retail and hotel/motel source of commerce. There are over 1000
jobs at the businesses he visited. He asked for support to keep these kinds of businesses
in Marana. He also attended the ribbon cutting for Sunflower Farmers Market hosting
450 people. Cutter Point Coffee and Golden Corral have had or are having grand
openings, and he noted many businesses coming to Marana.
MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS
Gilbert Davidson noted that the Executive Report is undergoing modifications and will be
available at the October 20th meeting. A special session of Council is scheduled on
October 27th at 6:00 p.m. October 21 at 9:00 a.m. is the groundbreaking for the Camino
de Manana/Dove Mountain extension. Invitations are in the process of being sent out.
He noted that this is a regional connective project.
Council Member Clanagan asked if there were any other changes to the Council
meeting schedule through the end of the year. Mr. Davidson stated that that would be up
to the Council.
STAFF REPORTS
GENERAL ORDER OF BUSINESS
CONSENT AGENDA
Motion to approve moved by Council Member McGorray, second by Council Member
Posz Motion carried unanimously 6-0.
C 1: Resolution No. 2009-168: Relating to Development; approving a release of
assurances for San Lucas Block 9 and acceptance of public improvements for
maintenance
C 2: Resolution No. 2009-169: Relating to Utilities; approving and authorizing the
Utilities Director to execute agreements with the Northwest Water Providers in a total
amount not to exceed $50,000 in FY 2010 in support of and directly relating to the
development of a delivery system for the Town of Marana's Central Arizona Project
water
C 3: Resolution No. 2009-170: Relating to Community Development; approving and
authorizing full execution of an intergovernmental agreement with Pima County for the
management and implementation of the 2009-2010 Community Development Block
Grant program
C 4: Resolution No. 2009-171: Relating to the Police Department; approving and
authorizing full execution of a Subgrantee Agreement with the Arizona Department of
Homeland Security for purposes of receiving funds under the 2009 Homeland Security -
Urban Security Initiative Grant Program
C 5: Resolution No. 2009-172: Relating to Community Development; authorizing an
agreement between the Marana Chamber of Commerce, Inc. an Arizona 501(c)(6) non-
profit organization to support the Marana Visitor Center and economic development
activities performed on behalf of the Town of Marana
C 6: Resolution No. 2009-173: Relating to Community Development; granting $36,000
in Funding to the Marana Western Heritage Committee, Inc. an Arizona 501(c)(3) non-
profit organization to support youth activities at the Marana Heritage Arena
C 7: Resolution No. 2009-174: Relating to the Police Department; approving and
authorizing the Town Manager to execute two Subgrantee Agreements with the Arizona
Department of Homeland Security for purposes of receiving funds under the 2009
Operation Stonegarden Grant Program
C 8: Resolution No. 2009-175: Relating to Liquor Licenses; approval and
recommendation to the State Liquor Board for a New No. 12 (Restaurant) liquor
license submitted by Yun X. Lu on behalf of New Town Buffet located at 8500 N.
Cracker Barrel Road
C 9: Resolution No. 2009-176: Relating to Liquor Licenses; recommendation of
approval to the State Liquor Board for permanent extension of premises for the Ritz
Carlton Golf Club Dove Mountain located at 6501 Boulder Bridge Pass, Marana, Arizona
C 10: Minutes of the September 15, 2009 regular council meeting
COUNCIL ACTION
A 1: PUBLIC HEARING: Ordinance No. 2009.20: Relating to Development;
approving a rezoning for Marana Mercantile, on approximately 39.09 acres located west
of the I-10 Frontage Road and north of Marana Road
This item and A.2 were taken concurrently.
The Mayor opened the public hearing. There were no comments from the public.
Mayor Honea closed the public hearing. The applicant has requested that this item be
continued to the November 3, 2009 meeting. The request is entered into the record
A 2: Resolution No. 2009-160: Relating to Development; approving a retail
development tax incentive agreement regarding the Marana Mercantile development
project and authorizing the Mayor to sign it
Mr. Cassidy presented and updated on some of the zoning specific changes and
conditions of rezoning of the development agreement that are being addressed and
clarified. (1) There are now added cross sections to each of the roads so that there is no
question about what infrastructure elements are included. (2) As originally presented,
there was no reimbursement for the Shoefly Road. The new version provides aone-
fourth of the cost reimbursement for the Shoefly Road. That was revised to recognize
that there is some public benefit for a road that might be in place for a long time. (3) If
Uptown in the future wants to use that Shoefly Road which is between the two
developments, they should pay their share agreement between the developers or there
would be no access. (4) Clarified ADOT participation for ADOT permits at the time the
roads are added. (5) With respect to the zoning conditions 5, 6 and 7 restated the
dedication language as it relates to the road turning to the north. (6) Condition 6 -the
Uptown Condition regarding the concurrency requirement -gives the overview of what
roadway improvements will have to be constructed as part of the rezone. (7) Modification
to Condition 7 -Traffic Studies. Language was added for clarification of Condition 6 -
paying the proportionate share. Marana Mercantile will have to pay their share.
Michael Racy representing Desert Troon, the property owners, commented regarding
Council's patience with the many continuances. He believes the vast majority of
discussion has been clarifying rather than changing conditions. He noted that it aligns
both the private and public sector interests as a package. Council Member Post asked
for the materials at least 10 days before the Council meeting. Mr. Racy assured Council
that this would happen. The changes to the three conditions in the development
agreement will hopefully be made within the next couple of days.
Mayor Honea stated concerns over parts of the reimbursement process and the fact that
there's no time period when the project needs to get moving. He suggested an
incentivized timeframe. The development agreement doesn't set forth a time frame. He
wanted discussion to agree to something concrete to obligate both sides and not leave it
open as to when to start. Mr. Racy responded that there are things in the agreement that
his client is not keen on. They have committed to build the Marana Main Street which
they have no nexus with on this project and to front that cost and get reimbursed. That's
an exceptional item at any time but especially in this economic environment. They've
agreed to a one percent reduction in the interest rate and aphase-down in the interest rate
if they don't perform within a time certain. They've agreed to a sunset on provisions on
any new commercial impact fees which create a very great incentive towards them
moving forward further. They've agreed to a balance of the condition that if they don't
perform, they'll have us forced to reevaluate things in the future. So he thinks they've
put in a number or carrots and a number of sticks to accomplish the sorts of things that
you would like to accomplish. You all know a partner in this project is Walmart. Upon
the zoning becoming final, they purchase 50% of this site. 'They don't purchase sites to
have them sit as vacant land. That's not what Walmart does. They purchase sites to
build stores on them. Desert Troon, the partner on the balance of it is a vertical property
developer. Very different from our neighbor. Very different from the other owners of
this property. But in this economic climate, if they try to put an arbitrary drop-dead date
in it rather than the kinds of creative incentives that they've spent a year working on with
management and staff, he honestly believe it may kill the deal. Economic times are that
difficult. This is the only project of its type that I'm aware of that's even moving forward
in southern Arizona -one of very few in the whole state. Target, who used to open 200
stores a year, will probably not open a dozen this next year. Home Depot - in the same
category. Walmart is about the only company that's still moving forward. Will they hit
their real estate committee date which is very soon on this site? I don't know if they will
in this economy. But you've got the best assurance you can have with this team that it'll
go forward as discussed and as planned. And if it doesn't, there are no obligations of the
town, no impediments to the town, in fact, part of what they've worked on are the
opportunities that if other larger players come in, they can do an improvement district to
accelerate some of these and then all the requirements of this agreement and the town's
reimbursement are all adjusted and reconciled, and it's some of those details that have
taken us so long to work out on this because two years ago we embarked on a big effort
to put an improvement district together. At that point the Cardon Company had a
commercial developer that was interested in their commercial site. Meritage and
Standard Pacific were still moving forward. You had projects north of town center that
were moving forward. All of those are gone at this point. So this is the only one that's
alive, and I think we've spent a lot of time... The only one of those big projects Ilisted -
there's another developer doing some small stuff in that area, and I've met with them and
we hope to coordinate some of it. But I'd be very, very cautious of an arbitrary drop-
dead date. Long answer but - but a really important issue. I know we've spent time on it
before, but it's -it's really important to my client.
Mr. Davidson statedthat staff would certainly take the time to review the agreement and
work with Mr. Racy and the client to look at all the triggers - and a number of them have
been mentioned tonight -looking at both the incentive side and the timeframes that are
involved here, and we'll make sure that when we come back on the 3rd that we're able to
clearly lay that out and highlight what those items are. If there are opportunities to
reinforce, we'll certainly to do that come back and provide that with our final
recommendation, but we'll work with Mr. Racy to make sure that we've clearly outlined
what all of the triggers are with this agreement.
Motion by Council Member Clanagan, second by Council Member Post to continue
this item to November 3, 2009. Motion carried unanimously 6-0.
A 3: Resolution No. 2009-177: Relating to Streets; modifying the Marana Major Routes
Plan right-of--way width for Adonis Road to account for the relocation of the linear
drainage buffer to an area adjacent to the Union Pacific Railroad
Presented by Keith Brann. He noted that he had made a single presentation for
Resolution No. 2009-177 and Resolution No. 2009-178, both of them relate to the
Tangerine Interchange and some of the designs that are coming out of that project. He
gave some background on the Town's Major Routes Plan adopted in 2002 and the right
of way plan for various arterial roads throughout town. He noted some modifications to
the Major Routes Plan -the Marana Road Realignment with the Marana Mercantile and
Uptown developments. He also noted the resolution that moved the Tangerine
interchange. Adonis Road falls in the same category as many of the town's arterials
roads in the northwest with a 250-foot right of way. To date, Tangerine Farms Roads uses
this section with the basins. Moore Road and in front of Gladden Farms, the linear
drainage buffer has been built. He discussed additional drainage issues and the problems
with a drainage buffer next to the right of way. The Adonis resolution is not really a
narrowing of the right of way; it's just taking a drainage buffer and relocating it. The
Tangerine resolution takes into account that the town's current Major Routes right of way
uses a 350-foot right of way for Tangerine Road. That was put into place due to the
possibility of a frontage road system on Tangerine Road to reduce the number of major
intersections so you could have a type facility. It also will accommodate the massive
slopes needed for interchange construction as you go over the railroad. The proposal
tonight is to narrow the right of way to 200 feet because in the area close to the
interchange there will not be a frontage road system. Also, the design of the Tangerine
interchange has taken away some of the uncertainty of how big the right of way is needed
in that there are constructing this on retaining walls which drastically reduces the need for
right of way. Reducing the right of way will allow more developable area around the
interchange. Council Member McGorray asked a question regarding which side of the
current Tangerine Road would go to Oro Valley. Mr. Brann stated that the proposal
before Council doesn't affect Tangerine Road once you get past Trico. After that there is
still a possibility of frontage roads and they want to keep the right of way the way it is.
He also noted that there would not be any drainage basins on Tangerine Road. The
Tangerine TI has some drainage in it, some of which will be public, but not linear basins
that are part of the right of way. Motion by Council Member Comerford, second by
Council Member Post, passed unanimously 6-0.
A 4: Resolution No. 2009-178: Relating to Streets; conditionally reducing the Marana
Major Routes Planright-of--way width for Tangerine Road in the vicinity of Interstate 10,
and providing for the automatic repeal of this resolution if the currently pending
Tangerine Road/Interstate 10 traffic interchange design is not implemented
See discussion above on this item. Ms. Bronson read this item into the record prior to the
motion. Motion by Council Member McGorray, second by Vice Mayor Kai. Passed
unanimously 6-0.
At this time, Mayor Honea noted that he had neglected to introduce a special guest
during Call to the Public, and he asked Representative Pat Fleming to come forward.
Rep. Fleming (LD 25) addressed Council and stated that she was happy to be back in
the area. She wanted to pay her respects to the Council and the public and for all to
continue to work for the best possible outcomes during the difficult times.
A 5: Resolution No. 2009-179: Relating to Personnel; approving and authorizing an
amendment to the Fiscal Year 2009-2010 temporary salary schedule adopted by the
Town Council on June 23, 2009; adding the title and salary range for an
Airport Manager, and declaring an emergency
Presented by Suzanne Machain. She referred to the plans for the airport given in an
earlier presentation. One of the components of that presentation was the hiring of an
interim airport director. She noted that a description has been developed as well as a
salary from data that was collected by comparator cities and other municipality airports
of similar structure and size. She requested adoption of the resolution. Mayor Honea
asked what she meant by a term limited appointment. Ms. Machain noted that it was not
considered a classified, regular full time employment. The Public Services General
Manager had indicated that because the airport will be growing, hiring someone in a
temporary capacity would be more appropriate until more growth has occurred. This
would be a term limited employee. Council Member Clanagan asked what would
trigger the change. Ms. Machain responded that as the airport evolves -and perhaps
Barbara Johnson would be a better person to speak to this -there will be a point in time
when we would want a higher level of responsibility overseeing the airport. Motion by
Council Member Comerford, second by Council Member McGorray. Passed
unanimously 6-0 by roll call vote.
A 6: Resolution No. 2009-180: Relating to Administration; approving a Social Media
Use Administrative Directive for Town of Marana employees and elected and appointed
officials; and declaring an emergency
Presented by Gilbert Davidson, who noted that at the September 15, 2009 meeting, the
Council approved an administrative directives process. The social media policy
presented tonight falls into that category. He described the six items of the policy, and
included the requirement for compliance with state law. Motion by Council Member
Comerford, second by Council Member McGorray. Passed unanimously 6-0 by roll
call vote.
BOARDS, COMMISSIONS AND COMMITTEES
ITEMS FOR DISCUSSION/POSSIBLE ACTION
D 1: Legislative Issues: Discussion/Direction/Action regarding all pending bills before
the Legislature
Steve Huffman presented this item. He briefly thanked Rep. Fleming and for her work
representing Marana. He noted the League of Cities and Towns is getting together
intergovernmentals on Friday regarding the impending session in November. Part of the
discussion will be what is expected and the impact on some of the budget bills that were
passed in the last session. He will report to Council on that. He also provided the latest
numbers as of August 2009 from the Joint Legislative Budget Committee. The current
shortfall in FY 2010 between $1B and $1.SB. In the most recent year to date analysis of
what they projected, the state's below their anticipated revenue collection for this fiscal
year by $80M, so the projections are already falling short which continues to compound
the problems currently faced. August was the 13th straight month with a double digit
decrease of revenues into the state general fund. The Governor asked all state agencies to
put together a plan for how they would reduce 15% of their current spending. This
compounds what is currently being spent to operate well in excess of the revenues
coming in. The bottom line is that although JLBC is saying there's a $1.SB shortfall,
there is about $ l OB worth of spending moving forward and about $7B of revenue. That
gap must be closed through revenue, spending cuts or one-time bonds. As of August
JLBC reports that $184M available from the unconditional stimulus money is down
about $80M of debt - so over half has been spent.
EXECUTIVE SESSIONS
E 1: Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for
discussion or consultation for legal advice with the Town Attorney concerning any matter
listed on this agenda.
E 2: Executive Session pursuant to A.R.S. § 38-431.03(A)(3),(4) and (7), discussion or
consultation for legal advice with the Town's attorneys and discussion and to consider its
position and instruct the Town Manager and staff concerning possible acquisition of
certain water infrastructure and accounts and water rights and/or resources
E 3: Executive Session pursuant to A.R.S. § 38-431.03(A)(3),(4) and (7), discussion or
consultation for legal advice with the Town's attorneys and discussion and to consider its
position and instruct the Town Manager and staff concerning (1) the lawsuit entitled
Town of Marana v. Pima County/Pima County v. Marana (consolidated), Maricopa
County Superior Court No. CV2008-001131, (2) pending legal issues, settlement
discussions and contract negotiations relating to the transition of Marana wastewater
collection and treatment to the Town of Marana
FUTURE AGENDA ITEMS
Council Member Clanagan asked again if Council had plans for additional meetings
through the end of the year. The Council Retreat was mentioned and noted on November
14.
ADJOURNMENT
Motion to adjourn moved by Council Member Post, second by Council Member
McGorray. Motion carried unanimously 6-0.
The meeting was adjourned at 8:26 p.m.
CERTIFICATION
I hereby certify that the foregoing are the true and correct minutes of the Marana Town
Counc' meeting held on October 6, 2009. I further certify that a quorum was present.
1~N Jocelyn C. Bronson, Town Clerk