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HomeMy WebLinkAbout05/18/2010 Special Council Meeting Minutes,~ ~ - ~""i ~A '~Al ~iA `~'~ ~~ St~'N 4~ MAASA4 SPECIAL COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, May 18, 2010, at or after 6:00 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 SPECIAL COUNCIL MEETING CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:02 p.m. Town Clerk Bronson called roll. All Council Members were present except Council Member Clanagan, who was excused. Mayor Honea asked that Council dispense with all business except the two presentation items and adjournment until the regular meeting. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA Motion moved by Council Member Comerford, second by Council. Member Post to approve the agenda with the changes noted by Mayor Honea. Motion carried unanimously 6-0. CALL TO THE PUBLIC PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS P 1: Presentation: Relating to Budget; presentation of the preliminary FY2011 budgets for the Enterprise Funds, other selected funds and the proposed Capital Improvement Plan Presented by Erik Montague. He began with an overview of the budgets of the Enterprise Funds -water and airport operating funds, selected fund and Capital May 18, 2010 Special Council Meeting Minutes Improvement Plan. He highlighted key elements in the development of the budgets, including adoption of rate structure, equipment replacement funding for debt service, emergency reserve and administrative fee transfer. He also spoke to emergency reserve establishment for a reasonable amount of funds for an unanticipated event. He noted two incidents that required the use of reserve funds this past year. Central service support comes from the administrative fee. He then summarized the current year's budget for the water utility for this year and next, including permit fees, investment income and some miscellaneous revenues. For the expenses side there are personnel changes but nothing major. There are some changes in the contracted services commodities, mostly capital outlay related to normal replacement ($183K for vehicle and important equipment replacement) and the emergency reserve that provides for additional capacity should some event occur - an overall change of about 19 percent in costs. The commodity changes are a result of fee increases combined with actual consumption calculations. It is a significant bump. Council Member Post asked if that was related to a fee increase or on the expense side. Mr. Montague responded that it was as a result of changes in the structure in the water rates fee schedules. On commodities, the significant portion is associated with the emergency reserve. Dorothy O'Brien elaborated that with this year's budget, they wanted to make sure that expenditures and revenues equaled to be frugal and make sure there was a reserve. This is what is being shown as a commodity. Council Member Post asked for her definition of a commodity. Ms. O'Brien responded that a commodity includes everything from valves and things we have out in the system to where electrical is charged. Mr. Montague concurred and stated that currently within this category are O & M costs as commodities. This didn't exist last year because the rate structure that allowed for this line item was incorporated in this year's numbers. The next operating fund is the airport. There has been a change or shift in the model - mostly on the expense side, most significantly with personnel and benefits. There are still reasonable contract services related to maintenance; .commodities, etc. The most significant change is in the number of projects in and about the airport -capital outlay due to grants and programs completed as well as started. There has been a change in bonds that were issued to pay for some airport improvements. Other selected funds include the transportation fund -the primary revenue source for the fund being contracting sales tax. There is a significant reduction in contracting sales tax. This is due to what we project to collect in the new year. As a result of less revenues and income there will be an adjustment in investment income. He will want to continue to evaluate categories ~,vithin commodities -capacity and reimbursements with developers, specifically Cottonwood. Capital Outlay and Replacements have seen changes as projects have wound down of about $1M. With respect to transfers out, this is directly related to the bonds issued back in 2008, a significant portion of that was for the Silverbell Road, Camino de Mariana, and then a transfer of some of that to Twin Peaks. So the biggest . piece of that bond issuance dealt with transportation-related projects, carrying the largest portion of that burden of debt service. When the bonds were issued, they were issued in Series A and Series B with anticipation that we would begin to call that debt. Staff will be working closely with financial advisors and bond counsel in the upcoming fiscal year to start to evaluate and do due diligence to call some of those bonds and retire some portions of those bonds to reduce our burden and save interest. The numbers are really revenues in and revenues out, appearing out of balance by about $3.4M, but what we're 2 May 18, 2010 Special Council Meeting Minutes projecting in beginning reserves or spendable resources going into next year using money collected in previous years that we haven't spent in that amount. The fund is in balance. Another large and significant fund is the Highway User Revenue Fund -gas taxes allocated back to the municipality based on a per capita count or census count. No significant change. This is the first year of a slight increase. The expenditures side shows no significant change other than some slight changes for maintenance for contracted services associated with street striping, sweeping and some of the pavement preservation work. Procurement has been working closely with the departments to identify efficiencies. Another fund of significance is the Local Transportation road assistance fund. In February of this year the state withheld all payments of local transportation assistance funds, basically a lottery distribution as well as a special distribution to allocate some of those dollars back to municipalities and organizations for transit and road-related improvements. So the change between the current year and next year is drastic, as we don't anticipate any funds from that source which may be permanent. We have no .reason to believe that it will be reinstated. On the expenditure side, we worked with Community Development. The $175K reflects our level of service required for existing routes. Because of some of the cost containment strategies in the current and earlier years, it is anticipated there will be somewhere in the neighborhood of $350K. At the end of the current fiscal year, it will be in spendable reserves. He then gave some background on the Capital Improvement Plan process. This is in the third cycle from when it was brought before Council in 2007 and adopted. This was intended to be a living, breathing document, continuing to use a best practices approach. One of the elements is how to maintain the project. Transportation projects identified are the Twin Peaks Interchange with $17M identified, coming from multiple sources; Camino de Mariana - $12.4M with funds coming from RTA, 2008 bonds and Pima County development fees; Tangerine Farms Interchange - $24.4M from ADOT, grants, and developer contributions; and Ina Road and Bridge - $24.7M from RTA, 2008 bonds, and Pima County development fees. Parks and Cultural projects include the Crossroad/Silverbell District Park with $.2M from park impact fees; and the Heritage Park - $.4M from park impact fees. Neighborhood Projects include the Honea Heights Sewer Improvements - $25K from carry over general fund dollars and Honea Heights Neighborhood Redevelopment of $1.6M from grants and Pima County bonds. Airport Projects-there has been slight change. Many of the major CIP projects have been completed, with a couple still underway. One is the traffic control tower from grant funds to complete the design. Related to current and future uses. are land acquisition and an environmental assessment to be completed next year for future capacity and expansion. Water Utility Projects are the Camino de Mariana Water Line of $.2M from the WIFA loan; Hartman to Cortaro Interconnect - $.3M from the WIFA loan; and the Picture Rocks Reservoir Replacement of $.3M is a result of their preventative maintenance program from the water operating and gravity storage. There are some general fund projects: the Northwest Drainage Repair canal adjacent to Northwest Fire's training facility - $165K. A key piece in this building is the Technology Redundancy of $120K for infrastructure.. Under the current design we have a single point of failure for electrical or hardware failure which would be crippling to the organization. Council Member Ziegler asked if this was afail-over. Gary Hudman addressed this question 3 May 18, 2010 Special Council Meeting Minutes from the technical side. There would be another IBM blade-server environment. The current server room is really stressed. But the PD server room could be used as backup. Council Member Ziegler asked if there was any disaster recovery in place. Mr. Hudman replied that there is no full recovery strategy in place. This is a key piece to that. So the $120K is for the new backup system. Mr. Montague continued that there is also a Technology Main Server A/C Improvements component under general fund projects of $ l OSK. This is primarily related to the racks. A portion of the air conditioning work will be completed under this project. Another key component is that the heart of the town is in that server room, so there is a narrow margin of time when all of the electronics in that room goes up. The last project is the MOC Community Room for $86K. Many organisations are using those facilities which have to be moved around to different rooms: This will provide for amulti-purpose community room. He concluded his presentation-with a pie chart showing 2010-2011 preliminary funding of $123M by source. Council Member McGorray asked for a hard copy of the report. P 2: Presentation: Kiosk sign program study session for discussion and Council direction Presented by Frank Cassidy, who noted that there has been a working group meeting on Fridays from Legal, Planning and Public Works to work on the Land Development Code. The Kiosk Sign Policy is one of the items they're working on. The current kiosk program is found in the LDC. The kiosk program operates within the public right-of- way, and our general sign program prohibits signs in the right-of--way unless they are regulatory signs. They would like feedback on possibly changing the program so that instead of having a private operator within the right of way (which raise First Amendment issues as well as practical problems), they would like to transition this to an internal program. This outline explains the direction they were thinking of to get feedback before .preparing it for Commission and Council consideration. It would require bringing an ordinance forward to delete it from the LDC, then bringing the actual staff program forward through a resolution through the use of town rights of way. Council Member McGorray asked for clarification on the definition of kiosk signs. They are slatted signs intended to look consistent throughout the community. They are wayfaring signs to find neighborhoods, new homes or other places of interest. Council Member Comerford noted that Planning has been working on this project for a while and builders have expressed concern over how long this process is taking. She indicated that there should be some builder input included before this comes back in July. She further noted that there has been a lot of money put out in the old signs. Council Member Ziegler asked if contractors would put up the signs. Mr. Cassidy replied that is possible or we could possibly do it internally. Council Member Post asked about the status of sandwich board signs for businesses. Mr. Cassidy replied that that is in the general LDC review process - one of the earlier items to look at in the overall sign code. The problem is that it's a type of sign that is temporary and right now we've generally prohibited those kinds of signs for First Amendment issues -commercial temporary versus non-commercial. That will probably be third after significant land use -which we hope to bring to Council for a study session on June 1. The sign provisions will take a couple of more months because they are complicated. Mayor Honea asked for questions and noted that Council wants to move forward as quickly as possible to change this. CONSENT AGENDA 4 May 18, 2010 Special Council Meeting Minutes LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION ITEMS FOR DISCUSSION/POSSIBLE ACTION 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. FUTURE AGENDA ITEMS ADJOURNMENT Motion to adjourn moved by Council Member McGorray, second by Vice Mayor Kai. Motion carried unanimously 6-0. The meeting was adjourned at 6:54 p.m. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council e held on May 18, 2010. I further certify that a quorum was present. ---._( ~' Jocelyn C. Bronson, Town Clerk 5 May 18, 2010 Special Council Meeting Minutes