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REGULAR COUNCIL MEETING
MINUTES
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, March 2, 2010, 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 7:02 p.m. Town Clerk Bronson called roll.
Council Member Clanagan was excused from the dais, joining the meeting at 7:17 p.m.
via teleconference.
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE
Led by Mayor Honea.
APPROVAL OF AGENDA
Motion to approve moved by Council Member McGorray, second by Vice Mayor Kai.
Motion carried unanimously 6-0.
CALL TO THE PUBLIC
Christina McVie. She is here representing the Coalition for Sonoran Desert Protection.
She expressed their concerns that the current boundary for the habitat planning area ends
at the town limits. When these concerns were expressed to staff the response was that
there were no plans for annexation, and the fact is that Marana is considering two
separate annexation proposals, and their proposal on behalf of both the technical team
and the stakeholder working group is that Marana expand its habitat conservation
boundaries to its planning boundaries for a future development cost savings of time and
money. Council Member Ziegler responded that the town can't cover every eventuality
from the planning perspective and that a lot of time has been spent on the HCP. She
thanked Ms. McVie's group for their input.
PROCLAMATIONS
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March 2, 2010 Council McEting Minutes
MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS
Council Member McGorray stated what a wonderful day at the Park (Silverbell) last
Saturday.
Council Member Comerford announced that she had been reviewing some of the
budget items and will have formal comments next week. She recognized several good
things going on at the town. Since the last Council meeting, the second Habitat had a
wall-raising on February 20. The Catholic Daughters were there who raised $SOK for the
house and working. On the 24ti, there was a budget open house at Twin Peaks
Elementary for the community with good senior citizens participation. On the 25th there
was a blood drive. Not only do the employees give their money, they give blood, too.
On the 26th, she visited with the seniors at the southside meeting area regarding decisions
that the Council had not made, so we put out fires on that day. She noted that no one
Council Member has the right to make any kind of a statement without the vote of the
seven of us, and that's important for us to remember. On the 27th, we had a wonderful
day with the Crossroads Park opening and celebration. She thanked the patient public for
the park to come. Today, our seniors had a picnic in the park, line dancing in the gazebo
and had a great time. There are a lot of good things going on in the town -more than just
what's reported in the paper. She reminded everyone that Founders' Day is coming up
March 20, and tomorrow there's another budget meeting at Heritage Highlands at
6:OOp.m. We're busy.
Mayor Honea noted that Council Member Comerford covered most of the items on his
list including the Habitat House on Hester. The Catholic Daughters did a lot of good
stuff. It will be good to have a family have another home in our community. He noted
that the Crossroads Park had been in process for about 12 years, and the Saturday event
was great. He noted the people in the community are pretty resilient. They are asking
tough questions about the budget, and everyone is pulling together, including the seniors
who have volunteered to help keep facilities open.
MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS
Mr. Davidson thanked and acknowledged Tom Ellis and Ryan Benavidez and staff for
their work on behalf the park.
PRESENTATIONS
P 1: Presentation: Relating to Development; request for direction on a potential
annexation of property known as the Emigh-Sanders Annexation
Presented by Kevin Kish. Vice Mayor Kai left the dais due to a conflict of interest.
This annexation is town-initiated. He indentified the four parcels within the proposed
area and noted that the property owners have loaned their support to the annexation.
Currently the parcels are zoned RH from Pima County. It would translate to Marana's
RD 180 zoning. The City of Tucson owns property within the boundaries. On February
17, the City Council approved a contract with (Council Member Clanagan joined the
Council at 7:17 p.m. via telephone) Fotowatio LLC, a photovoltaic company, to generate
solar power -the second largest one in this region. This is an opportunity to help secure
these types of cutting edge industries for the Town. Council Member McGorray asked
about space requirements. Mr. Kish acknowledged that there was some discussion
during the roadmap process. What is unique about this area is that it's a retired farm field
owned by the City, so it lays with no use on it. This is an opportunity for a use and for
innovation. Most of the areas within the incorporated area of the town are not suitable
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March 2, 2010 Council Meeting Minutes
and this project would be discouraged in those areas. Council Member McGorray
asked who would be doing the work. Mr. Kish noted that the City had a contract with a
company to put in the solar farm. Council Member McGorray asked if there would be
any tax generated from selling electricity would this to benefit the town. Mr. Kish
responded that under this RFP with Tucson Electric Power who is the party receiving
energy, and he wasn't sure of the details on how any of that type of recurring revenue
would come to the town. Council Member Ziegler asked who owned the land. Mr.
Kish noted that Richard Westfall owns a parcel on which his home sits; the northern
piece is under Twin Peaks Land & Cattle LLC; and Fred Shafer on the other property.
City of Tucson owns the other parcel for the water rights years ago. This currently is
under Pima County's jurisdictiono Council Member Ziegler asked if everyone was in
agreement with the annexation. Mr. Kish acknowledged that in discussing it with them
they had all given their support for the project and would move forward if the Council
directed staff to go forward. Council Member Ziegler asked who it would be run by
and would the town be overseeing it since within the town limits. Mr. Kish responded
that the company running the project would be Fotowatio LLC and that the town would
be permitting it and doing the inspections. It would be a private enterprise so the town
wouldn't have involvement after the establishment of it other than typical day to day
operations for the town. Council Member Post asked if the only reason the town would
be annexing this is to say that that we have a solar farm in our town. Mr. Kish
responded that that is one of the reasons. We are also looking at opportunities to collect
revenue within the town -the permitting. Council Member Post asked if the property
owners came to the town and they're agreeable to this. Mr. Kish reiterated that this was
outreach by the town, but they have been positive in their support of being brought into
the town. Council Member Post asked if there would be future cost to the town such as
road repair and maintenance on both the north and the south ends. Mr. Kish stated that
during the construction process there would be heavy equipment used, but the town
would be picking up the maintenance of the roads as required by state statute. The
property owners haven't been asked to do any upgrades or maintenance to the roads.
Council Member Post asked for clarification again that there would only be the one-
time revenue generated from the permitting. Mr. Kish replied affirmatively. Council
Member McGorray asked general questions about whether Twin Peaks Road was still
dirt or paved and what would be going in on Mr. Kai's property. Mr. Kish replied that
the Kai property is farming, Mr. Westfall has his person residence, and the piece owned
by Twin Peaks Land & Cattle has a well site on it. Avra Road is paved. He replied that
under the RD 180 sitting utilities on property like this requires a conditional use permit to
establish that use on the property if it were to be annexed. Access to the properties for
the solar would be along Emigh Road as well as possibility to take it from Sanders Road
as well. Council Member Ziegler asked again about the benefit to the town other than
having solar in the town. Mr. Kish replied that he's not sure if there will be recurring
revenues from the power generation aspect. Council Member Ziegler recalled several
years prior about taking property into the town without doing acost/benefit analysis. She
questioned the benefit to the town other than staying with the strategic plan balanced
against incurring costs to maintain the field. Mayor Honea asked if the photo cells were
producing electricity, would the town collect sales tax on the utility. Erik Montague
addressed the question and stated that although he is not familiar with the particular
business being placed, if it does involve the actual delivery and sale of electricity as a
commodity transaction to some form of user, it would most likely be subject to
transaction privilege tax. There are some certain exclusions and deductions that are
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March 2, 2010 Council Meeting Minutes
allowed within the tax code, and he would need to verify whether that is actual taxable or
if there is some type of exclusion for that type of industry. He would need to come back
with more accurate information. Mayor Honea asked for more information and to
postpone action on this until the next regular Council meeting in two weeks.
Mr. Kish requested Council action to direct staff to bring this item back for the next
meeting with answers to the questions brought up tonight and go forward or stop it at that
point. Council Member McGorray asked if the landowners intended to retain
ownership of their land. Mr. Kish replied that under the agreement with the City of
Tucson, it's a lease agreement so they would maintain the ownership of the land as part
of their package when they purchased it and retired the farm and took the water rights
elsewhere. They are not looking at a transfer of ownership to the company doing the solar
work. Mr. Davidson noted that this is part of the review process in making sure that we
answer all of these questions. In the Council information, it indicated the costs that the
town would potentially assume maintenance related to Twin Peaks and Emigh Roads.
The town is already in the area because of the high school. There are one-time financial
considerations to be made. So this project's going to be done whether we annex or not.
Someone will be able to do the development review and capture those fees as well as the
construction sales tax that will be generated. We either have an opportunity to have it in
the town as part of our efforts to secure green level projects and solar projects and capture
that revenue or it will be done somewhere else. Mr. Kish responded that under the
agreement the applicant would develop the property through the Pima County
development services. Council Member Ziegler asked for a copy of the agreement with
the City of Tucson and the private developer.
This did not require a formal motion to bring back to Council for further consideration
at the next regulaN meeting.
CONSENT AGENDA
Motion to approve moved by Council Member Comerford, second by Council MembeN
Posh Motion carNied unanimously.
C 1: Resolution No. 2010-20: Relating to Community Development; approving and
authorizing full execution of an Intergovernmental Agreement with Pima County for the
management and implementation of Community Development Block Grant Program
funding for Honea Heights neighborhood design and engineering plans
C 2: Resolution No. 2010-21: Relating to Community Development; approving and
authorizing full execution of a contract (RO16-10-35) with the Arizona Department of
Commerce to receive funds under the American Recovery and Reinvestment Act
(ARRA) Arizona State Energy Efficiency Block Grant Program to assist in the
development of a comprehensive energy efficiency and conservation strategy
C 3: Minutes of the January 26, 2010 and February 9, 2010 special council meetings and
the February 2, 2010 and February 16, 2010 regular council meetings
LIQUOR LICENSES
BOARDS, COMMISSIONS AND COMMITTEES
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March 2, 2010 Council Meering Minutes
COUNCIL ACTION
A 1: Resolution No. 2010-22: Relating to Economic Development; approving and
adopting the Marana Economic Roadmap strategic plan
Presented by Josh Wright. He gave an overview of the final draft of the roadmap
incorporating the comments. The final document is before Council. He recognized the
Council Members who served on the committee -Council Members McGorray and Post.
Motion to approve moved by Council Member McGorray, second by Council Member
Posh Motion carried unanimously.
A 2: Resolution No. 2010-23: Relating to Administration; approving an Electronic Mail
Retention and Storage Administrative Directive for Town of Marana employees and
elected and appointed officials
Presented by Deb Thalasitis. She noted that last September, the Council approved a plan
for the town manager to institute a series of administrative directives. As part of that,
staff committed to come back when there was a directive that needed to apply more
broadly than to just town staff - to elected officials or appointed officials. This directive
outlines the parameters for the retention of electronic mail. This policy defines when an
email is a public record and the period for which we will retain the more routine emails
that are not considered public records. Other entities around the state average from
between 30-90 days' retention. We have the ability through our email archive system to
retain emails for -120 days, so in the interest of being able to respond to disclosure
requests, that is the recommended time limit. After 120 days, if an email is not
considered a record under one of our retention schedules, it would be deleted. This does
for us is let us respond to citizen requests more quickly. Now we have many, many
months of email. It also frees up server space so that we are able to use the space on our
computer servers for data. bases and other things that help our operations. So to some
degree this is housekeeping. We will be conducting training through the Town Clerk's
office and the Town Attorney's office. Once we've been able to train employees, we
would ask as part of this resolution that the manager determines the effective date so that
we don't jump prematurely in implementing this. Council Member Post noted that there
have been a lot of requests for record searches on emails. Does this mean that they
cannot request an email that is older than 120 days? Ms. Thalasitis stated that if the
email is subject to a different retention schedule -which she enumerated -they could see
those but they would need to specifically ask for them. But for a general request, we
would only have the ability to go back 120 days. City of Phoenix only retains email for
30 days. On average, the cities are somewhere between 30, 60 or 90 days. But if it's not
a record protected by another record schedule, we would not have anything beyond 120
days. Council Member McGorray asked if Council would be provided with a list of
categories. Ms. Thalasitis responded yes, and that there will be training that involve
boards, commissions and Council Members and town employees. She indicated that staff
would try to move quickly on this because server space is precious and costly.
Motion to approve moved by Council Member McGorray, second by Council Member
Comerford. Motion carried unanimously.
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March 2, 2010 Council Meeting Minutes
A 3: Resolution No. 2010-24: Consideration and possible adoption of a resolution of
the Mayor and Common Council of the Town of Marana, Arizona, approving the form
and authorizing the execution and delivery of a Loan Agreement with the Water
Infrastructure Finance Authority of Arizona from its Drinking Water Revolving Fund
Program and, if necessary, guaranty or similar agreements to provide insurance policies
or surety bonds necessary in connection therewith; delegating the determination of
certain matters relating thereto to the Finance Director of the Town; authorizing the
taking of all other actions necessary to the consummation of the transactions
contemplated by such Loan Agreement and this resolution and declaring an emergency
Presented by Erik Montague. He noted that in September of 2009, staff brought before
Council a request for authorization to submit an application to the Water Finance
Authority for a loan in an amount not to exceed $5.25M. The source of repayment for
that was utility revenues, which is consistent with the long-term strategy of the utility.
Staff did submit that application and it was reviewed, ranked and was identified to make
the list for funding. Tonight's item is a resolution to preliminarily approve the
documents to close that loan. This would provide the capacity to complete several
significant utility projects -specifically the Hartman to Cortaro interconnect, the Camino
de Marana water line as well as the Silverbell and CMID well acquisition which the town
entered into agreement to acquire last year, and portions of the Twin Peaks/Bluebonnet
water line. The sources and uses of the revenue has been identified and verified through
the outside consultant and has been incorporated within the rate model. If approved, this
will serve as the utility's first formal debt instrument for which they will be completely
obligated. There will be no general fund or VAT of any kind. Council Member Ziegler
asked for clarification on this coming out of the enterprise fund for payback. Mr.
Montague responded that that is correct -the source for repayment is utility revenues.
Dorothy O'Brien indicated that she is ready to pick that up in her budget. Mr.
Montague responded to an inquiry from Council Member Ziegler about what would
have happened if the town had not gotten this loan that the projects at a minimum would
be delayed and other funding would have to be found. Ms. O'Brien noted that this is a
distinct part of the rate plan previously brought forward to Council, working closely with
the rate consultant and Mr. Montague to bring forward the best mechanisms for getting
good rates. This is a great way for us to use that program as well as minimize the effect
on rates. Mayor Honea stated that there is an emergency clause on this item.
Motion to approve moved by Council Member Ziegler, second by Council Member
Comerford. lldotion carried unanimously by way of a roll call vote.
Mayor Honea noted that he was remiss earlier in not introducing members of Scout
Troop 226 and their leader, present to earn a merit badge. He asked them to stand and be
recognized at this time.
ITEMS FOR DISCUSSION/POSSIBLE ACTION
D 1: Legislative/Intergovernmental Report: Discussion/Direction/Action regarding all
pending state and federal legislation and report on recent meetings of other legislative
bodies
Presented by Steve Huffman who noted that the Legislature suspended all their normal
hearings to work exclusively on the budget. There is a special election coming up on the
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March 2, 2010 Council Meeting Minutes
one cent sales tax increase on May 18th. The Legislature announced last week that they
were going to try to adopt two different budgets -one with the one cent sales tax increase
and one without the one cent sales tax increase. They are trying to pass these prior to the
election so that the voters will know what they're looking at. It is not completely clear
whether there will be two separate bills or one. There might be a bill with contingency
cuts based on whether it passes. Of significance today was an email received from the
League of Cities and Towns saying as part of this budget proposal one of the rumors
floating around is that as part of one of the tricks to balance the budget they are going to
try to take $22M from state shared revenues and give it to counties to offset some shifts
they they're going to do from the state to the counties. This $22M would, if they follow
the normal formulas, be about $120K out of the Town of Marana's budget. It's my
belief, and in conversations with the League, they have the same opinion, that this is the
same thing we saw last year that we saw with the vehicle license tax cut where Pop 108
(the requirement says that if you have any impact on the general fund it takes a
supermajority vote of the Legislature to pass that). What the Legislature is trying to do
last year and it looks like this year is circumvent the Constitution by saying the money is
not going to come to the state general fund so it won't trigger that Constitutional
provision -we're just going to take it directly from you and give it directly to the
counties. He doesn't belief that will meet Constitutional muster, nor does the League
believe that. We are all working to keep this from happening, but even if they do pass
this, the League will be actively working in conjunction with cities and towns across the
state and in court if it's necessary against this. He believes this is a clear violation of the
Constitution. This is something to be aware of and concerned but not to stay up worrying
about. There are numerous bills going through the Legislature from impact fees to the
length of yellow lights and traffic lights in the town of Marana. Council Member
McGorray noted that she had heard on a news broadcast the one cent sales tax -that if
that does pass, none of it will go to cities and towns. Mr. Huffinan responded that with
the current five cent sales tax there's a distribution that goes partially to the general fund
and part of it goes to cities and towns and part of it goes to counties. Because of the
budget situation, the legislation that was sent to the ballot specifically exempts this one
cent from the normal distribution formula. Everything else will be exactly the way it is.
The one cent will go 100% toward the state. Within the language, two-thirds is dedicated
to K-12 education and universities; one-third is dedicated toward public safety and health
and welfare programs, but there will not be the traditional distribution formula to cities,
towns and counties like with the other five cents. What they do with the one cent does not
in any way affect the formula for the existing five cents that we currently get.
EXECUTIVE SESSIONS
Motion to go into executive session for Item E 4 moved by Council Member
Comerford, second by Council Member McGorray. Motion carried unanimously.
Ms. Bronson noted for the record that Council Member Clanagan would be leaving the
meeting at 7:59 p.m. prior to the executive session.
Council left the dais at 7:59 p.m. Council returned to the dais at 8:45 p.m.
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March 2, 2010 Council Meeting Minutes
E l: 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
E 4: Executive session pursuant to A.R.So § 38-431.03(A)(4) for discussion or
consultation with the Town's attorneys regarding Chamberlain v. Town of Marana, Pima
County Superior Court No. 020094273, and Blomquist v. Town of Marana, United States
District Court, District of Arizona, No. CSI-09-671-TUC DCB
FUTURE AGENDA ITEMS
ADJOURNMENT
Motion to adjourn moved by Council Member Post, second by Council Member
Comerford. Motion carried unanimously 6-0.
The meeting was adjourned at 8:45 p.m.
CERTIFICATION
I hereby certify that the foregoing are the true and correct minutes of the Marana Town
Council meeting held on March 2, 2010. I further certify th~t,~~ was present.
Jocelyn C. Bronsori, Town Clerk
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March 2, 2010 Council Meeting Minutes