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REGULAR COUNCIL MEETING
MINUTES
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, Apri12, 2013, at or after 7:00 PM
Ed Honea, Mayor
Patti Comerford, Vice Mayor
David Bowen, Council Member
Herb Kai, 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 7:06 p.m.
Town Clerk Bronson called roll. All Council Members were present.
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. The Pledge was led by
Boy Scout Troop #259.
APPROVAL OF AGENDA. Motion to approve by Council Member Bowen, second by
Council Member McGorray. Passed unanimously.
CALL TO THE PUBLIC. No speaker cards were presented.
PROCLAMATIONS
MAYOR AND COLJNCIL REPORTS: SUMMARY OF CURRENT EVENTS. No reports.
MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. Mr. Davidson noted that the
Finance Department, for the sixth straight year, was awarded the Distinguished Budget
Presentation Award from the Government Finance Officers Association of the U.S. and Canada.
This organization represents over 17,500 government finance professionals. These efforts put the
town in a very positive light. Also, the crack seal team in Operations & Maintenance division
competed in a statewide "street rodeo" in Gilbert, Arizona and took third place in the state
overall.
PRESENTATIONS
P 1: Presentation: Relating to Finance; presentation, discussion and possible direction on
proposed changes to the comprehensive fee schedule and other various rate and fee adjustments.
Meeting Minutes for Apri4 2, 2013 Page 1 of 6
This item was presented by Erik Montague. Before he began, he thanked Council for their
efforts in helping him and his staff achieve the finance award. He introduced the newest member
of the Finance department, Katie Determan, who is the Budget and Management Analyst. Erik
gave an update to the Comprehensive Fee Schedule going back to the first schedule in 2009. He
noted that this update is the fifth since that time. The goals of the schedule are the standardize
fees across department, ensure that the town continues to cover its costs where possible and
reflect the actual cost of providing services, and charge customers fairly for the services staff
provides.
The review of this fee schedule began in December 2012, and a fee review committee met during
February and March 2013 to look at the suggested recommendations. He also noted that the
Southern Arizona Home Builders Association and the Metropolitan Pima Alliance were both
brought into the review process. There were 49 recommended changes — primarily to existing
fees. Twelve fees were added, primarily to Parks & Recreation, and three fees were eliminated.
P 2: Presentation: Relating to Budget; review, consideration and direction to staff regarding the
preliminary FY2014 budgets for the Enterprise Funds, other selected funds and the proposed
Capital Improvement Plan. Mr. Montague began with a general fund revenue update as well as
enterprise operating funds and the CIP process and selected projects. He noted that the numbers
continue to trend as expected. Some of the key changes that were alluded to earlier have been
due to changes in sales taxes. There are two major components that are causing that variance.
One has to do with contracting sales tax and the reallocation of those dollars. We are expecting
to collect less revenue in 2014 than we are in the current year. Those dollars that are expected to
be collected are under the rules that are currently in play in the tax code. Intergovernmental
revenues did improve. The biggest change was in license, permits and fees primarily due to
single family residential permits. Staff budgeted for 330 building permits for 2013, and for next
year we are projecting about 550 building permits. For the month of March 2013, we had 125
building permits, which is the largest month that we've have since 2006. The overall
improvement has been a little over $1 M or about 3.4 percent. He then discussed how to make a
structured or balanced budget, which is always a primary goal, especially when dealing with one-
time and ongoing revenues.
Another major component of using available resources is the recovery planning element. Those
elements have been identified as current staff, adding strategic positions and resources and tools
to provide services. There is about $1.SM in projected ongoing revenue, less about $141K for
health insurance and retirement of $154K, which leaves about $1.2M available to allocate for
compensation adjustments, new positions, programs enhancements and other investments. The
challenge is to reinvest the revenues to adequately maintain services. A review process to make
those determinations is ongoing. We are also looking to achieve refinement and consistency
with the strategic plan goals and the allocation of the budget dollars.
Mr. Montague then shifted to a high level overview of the enterprise operating funds starting
with the water utility, the wastewater facility and airport. He then discussed the capital
improvement plan, beginning with the background of projects highlighting selected projects
under consideration for 2014. Those include committing one-time resources of about $1.6M
from the general fund for the Honea Heights septic conversions and sidewalks, Marana Main
Meeting Minutes for April 2, 2013 Page 2 of 6
Street, Ora Mae Harn Park improvement and dispatch consoles. From the Transportation Fund,
one-time resources of $3.SM toward road improvements on Thornydale Road from Tangerine to
Saguaro Ranch, the Ina Road and bridge, and reconstruction of roads within Parcel 26 and Parcel
28 in Continental Ranch. From HURF fund, one-time resources of about $3.8M that could be
allocated to Cracker Barrel Road pavement restoration, rebuilding Costco Drive and minor
improvements for pavement preservation. From the Parks impact fees, about $2.7M in one-time
resources for the design and construction of Heritage Park improvements and the Santa Cruz
shared use path from El Rio to Avra Valley. From outside funding sources such as the Regional
Transportation Authority, we are looking at improving the Tangerine Road corridor for $9,248M
and $200K for downtown sidewalk and draining improvements. From the Airport Fund
including federal and state aviation grants and airport operating funds -- $370K for apron
rehabilitation, $300K for the airport master plan update and $S 15K for safety lighting and
signage improvements. From the Water Utility Fund -- $325K for integrated telemetry and
SCADA, $250K for Twin Peaks Well improvement, and $1M for constructed recharge of
effluent (from impact fees). From the Wastewater Fund -- $700K for the Marana water
reclamation facility head work and from the Wastewater Capital Fund -- $300K for the Marana
Water Reclamation bio-solids facility.
The purpose of the presentation was to solicit feedback prior to the presentation of the Manager's
Recommended Budget. Mr. Davidson responded to a question from Council Member Bowen
about recommended increases for salaries for staff. He noted that staff will be laying out options
for consideration, similar to what was done last year and tying it to the class and compensation
study that was authorized by Council. Council Member Post asked about the selection of
Honea Heights for $2M of improvements and the town's obligations. Mr. Montague responded
that the number was based on the needed connections to sewer. In the current budget cycle, it
was included as a$2.1 M number, anticipating that we would be able to get grant funds. We
were not successful in securing that funding, but that number is the same for next fiscal year.
Council Member Post asked what the plan was. Mr. Davidson responded that how we need to
look at Honea Heights is as kind of a reinvestment area in terms of infrastructure — one of the
original neighborhoods. There have been ongoing discussions over the years with residents to
hook up to the sewer. One of the things staff is bringing back to Council is a comprehensive
policy or process of how to deal with individual residences. Council Member Post noted that
there are several neighborhoods within Marana that have the same issue. Will we be extending
the same offer to them as they come around? Mr. Davidson noted that this is a question that
warrants full discussion amongst the Council. One of the factors in the decision to fund the sewer
hookups in Honea Heights is that a grant had been secured by the County, and the town was
working closely with them when there was a failure of the grant. He thinks that's what brought
us to this point. Mr. Davidson concurred that there are definitely other axeas in the community
that need improvements as well.
CONSENT AGENDA. Motion to approve by Council Member Post, second by Council
Member McGorray. Passed unanimously.
C 1: Resolution No. 2013-028: Relating to Community Development; approving and
authorizing the Mayor to execute a Memorandum of Understanding between the Town of
Marana, the Desert Bluegrass Association and the Arizona Bluegrass Association regarding the
planning, development and presentation of the Marana Bluegrass Festival in April 2013
Meeting Minutes for Apri12, 2013 Page 3 of 6
C 2: Resolution No. 2013-029: Relating to Personnel; repealing Marana Resolution No. 2008-31
which requested approval of a recommended labor market of comparable organizations for
purposes of a salary and benefits survey
C 3: Ordinance No. 2013.005: Relating to Administration; Amending Town Code Section 3-2-7
(Town Attorney) to confirm the Town Attorney's role as prosecutor; to authorize action on the
Town Attorney's behalf by deputy and assistant town attorneys; and setting an effective date
C 4: Resolution No. 2013-030: Relating to Development, approving and authorizing the
reversion to acreage of the Arcobaleno Final Plat.
C 5: Resolution No. 2013-031: Relating to infrastructure; approving acceptance of public
improvements; 2701inear feet of roadway improvements, located at 6800 N Camino Martin for
maintenance.
C 6: Approval of Study Session Minutes for March 13 and Special and Regular Minutes for
March 19, 2013.
LIQUOR LICENSES
BOARDS, COMMISSIONS AND COMMITTEES
COUNCIL ACTION
ITEMS FOR DISCUSSION/POSSIBLE ACTION
D 1: Presentation: Relating to promoting and expanding tourism in Marana. Presented by
Gilbert Davidson, who noted that Marana has many things to offer as a tourist destination such
as a world-class resort, located in the heart of the Sonoran Desert, there is incredible weather and
many positive visions for the future. Any successful tourism program takes investment of
promotion. To be the place that people know about and will attract visitors will take resources.
Mr. Davidson gave some background on the issue of tourism. The town was appraached by the
Metropolitan Tucson Convention and Visitors Bureau (MTCVB), who considers themselves the
regional tourism entity, asking Marana to enter into a multi-year contract to help them land
conventions at some of our hotel properties in the community. One of the points that Marana has
made to the MTCVM is that in order to land the Ritz Carlton, the town entered into a long-term
agreement with the state land department to mitigate habitat areas that has taken dollars off of the
negotiating table with them. The town also entered into an agreement with the Ritz Carlton to
rebate portions of the bed tax and exempted portions of Dove Mountain from impact fees. Even
to host the Accenture Match Play, agreements were made to exempt some of the sale tax from
concession sales. All these things have helped make Marana a competitive place in terms of
hosting events such as the Accenture and landing the Ritz Carlton.
Meeting Minutes for April 2, 2013 Page 4 of 6
The body was authorized by the state and developed partly with Pima County. The Board of
Directors is made up of different entities including developers and run by an executive director
and a host of staff. The charge is to promote tourism in the Tucson region with an emphasis on
bringing large-scale conventions. They do that through a comprehensive website which is the
portal for local hotels and businesses. The MTCVB also produces an annual travel guide.
Mr. Davidson then presented the current MTCVB offer which is based on bed tax revenues of
$1.28M. For FY 2014, MTCVB is asking for 8.3 percent of Marana's bed tax revenues. For FY
2015, they are asking for 20 percent of revenues or $256K, and for FY 2016, they are asking for
25% or $320K of our bed t� revenues. He presented data on some convention and visitor
bureaus around the state and who guides their tourism activities. In those cases, the Chamber of
Commerce operates their convention and visitor bureaus. Mr. Davidson noted that many
attempts by Marana to negotiate with the MTCVB on the amount requested due to our prior
obligations were declined by MTCVB. And because of a lack of a formal agreement, MTCVB
has cut off all properties within Marana, including smaller properties which paid for their own
advertising apart from the town. Those monies were returned to them.
He then presented options for review. One would be to take no action. Another would be to join
the MTCVB at the current rate structure. A third option would be to create and manage a
Marana tourism and visitor bureau. This could be proposed as a partnership with the Marana
Chamber of Commerce, contracted with a private entity or developed as an in-house function.
(Council Member Post left the dais at 8:32 p.m.) After much discussion and debate by Council,
a motion was made by Mayor Honea and seconded by Council Member Ziegler to direct staff
to work on an item for ne�et week's agenda that will have us personally handling our
convention and visitors bureau programs, possibly in conjunction with the Chamber in the
?'own of Marana, at least to get us started. Passed 5-1 with Council Member Kai voting nay.
Mr. Davidson noted that he will get this on the April 9 agenda as a consent item. It is noted here
that because the item was characterized as a presentation on tonight's agenda, Council was
unable to take direct action at this meeting other than to bring it back for additional consideration
as noted in the motion above.
(Council Member McGorray left the dais at 8:40 p.m.)
D 2: Relating to Legislation and Government Actions; Discussion and possible action regarding
all pending state, federal, and local legislation/government actions and on recent and upcoming
meetings of other governmental bodies. Presented by Del Post, who gave a brief update. He
noted that the League's Legislative Bulletin was provided to Council at the dais. He further noted
that the TPT bill which has defined this session is stalled in the legislature, but nothing fruitful or
formal has been done. Mr. Post noted that the bill was originally proposed in the House at HB
2857. It failed to move out of the House by March 27, but the Governor was able to get the same
bill proposed in the Senate using a strike-everything process. So there is a bill alive in the
Senate. So bills that are sponsored by the Governor and supported by the Senate President, the
rules regarding deadlines and hearing dates are very loose and flexible. It's expected that the bill
will make it out of the Senate; we're just not sure what the language will look like.
Meeting Minutes for April 2, 2013 Page 5 of 6
EXECUTIVE SESSIONS. Mayor Honea noted that Council did not have time to finish the
executive session at the Special Meeting regarding wastewater, and asked if Council wanted to
go into executive session now or come back for another executive session next week. After
discussion, it was noted that Council would convene an executive session next week.
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), for discussion or
consultation with the Town's attorneys and to instruct the Town's representatives concerning (1)
the lawsuit entitled Pima County v. Town of Marana, Maricopa County Superior Court No.
CV2011-099966 and (2) pending legal issues, settlement discussions and contract negotiations
relating to the transition of Marana wastewater collection and treatment from Pima County to the
Town of Marana.
FUTURE AGENDA ITEMS
Notwithstanding the mayor's discretion regarding the items to be placed on the agenda, if three
or more Council members request that an item be placed on the agenda, it must be placed on the
agenda for the second regular Town Council meeting after the date of the request, pursuant to
Marana Town Code Section 2-4-2(B).
ADJOURNMENT. Motion to adjourn at 8:43 p.m. by Council Member Bowen, second by
Council Member Kai. Passed S-D.
CERTIFICATION
I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council
meeting held on April 2, 2013. I further certify that a quorum was present.
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Meeting Minutes for Apri12, 2013 Page 6 of 6