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HomeMy WebLinkAbout06/18/2013 Regular Council Meeting Minutes�pW N OF i '� �� 7 9 M�RAI�IA'' � qRIZON�` REGULAR COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, June 18, 2013, at or after 7:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 7:01 p.m. Town Clerk Bronson called roll. All Council Members were present. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Motion by Council Member Ziegler to move Item S.A. to the first item on the Action agenda; second by Vice Mayor Post. Passed unanimously. CALL TO THE PUBLIC. David Morales addressed Council regarding the use of solar energy. PROCLAMATIONS Support for the Marine Corps League Proclamation MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Council Member Comerford spoke regarding a swim meet at the Ora Mae Harn pool last Saturday. She noted that there were 400 kids involved in the morning; Mayor Honea reported on a meeting in Eloy with several Mayors from southern Pinal; he attended the Arizona Town Hall annual meeting as an official member of the executive board; met with Bob Murray who is helping PAG narrow down the field for a new executive director; attended the Foothills Optimist Club presentation of $1000 in swim passed for the OMH pool this week; and he spoke at the Marana Training Facility GED graduation. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS No report. PRESENTATIONS. None. CONSENT AGENDA. Motion to approve by Council Member McGorray, second by Council Member Ziegler. Passed unanimously. Meeting Minutes for June 18, 2013 Page 1 of 13 C 1: Ordinance No. 2013.010: Relating to Animal Control; amending Marana Town Code Title 6 entitled "Animal Control"; amending Section 6-2-8 to modify a provision related to delinquency penalties; and designating an effective date. C 2: Ordinance No. 2013.011: Relating to Traffic and Highways; amending Town Code Chapter 12-7 (Construction in Town Rights-of-Way); modifying provisions related to the permit process; modifying construction requirements; modifying provisions related to the imposition of late fees; clarifying provisions related to enforcement of violations; and designating an effective date Resolution No. 2013-058: Relating to Traffic and Highways; declaring as a public record filed with the Town Clerk the amendments adopted by Ordinance No. 2013.011 to Marana Town Code Chapter 12-7 (Construction in Town Rights-of-Way) C 3: Resolution No. 2013-059: Relating to Personnel; approving and authorizing the Town Manager to execute a separation agreement between the Town of Marana and Kevin Kish C 4: Resolution No. 2013-060: Relating to the Police Department; exempting undercover vehicles used by the Marana Police Department in felony investigations or activities of a confidential nature from Arizona state laws related to the designation of political subdivision motor vehicles; authorizing the Chief of Police to renew existing vehicle registrations for these undercover police vehicles and to obtain vehicle registrations for new undercover police vehicles to be used in felony investigations or activities of a confidential nature. C 5: Approval of May 22 and June 4, 2013 council meeting minutes LIQUOR LICENSES L 1: Relating to Liquor Licenses; recommendation to the Arizona state liquor board regarding a new Series 12 restaurant liquor license application submitted by Thomas Aguilera on behalf of Monsoons Tap and Grill. Presented by Jocelyn Bronson, who noted that the application was properly posted, investigated and no protests were received. Staff recommended approval. Motion to approve by Council Member Comerford, second by Vice Mayar Post. Passed unanimously. L 2: Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for agent change and acquisition of control of an existing Series #4 wholesale liquor license submitted by Omhar Acuna for Cordon Distributors located at 6260 N. Travel Center Drive, No. K-3. . Presented by Jocelyn Bronson, who noted that the application was properly posted, investigated and no protests were received. Staff recommended approval. Motion to approve by Council Member Bowen, second by Council Member McGorray. Passed unanimously. BOARDS, COMMISSIONS AND COMMITTEES B 1: PUBLIC HEARING: Resolution No. GFCFD 2013-03: [Marana Town Council acting as the Gladden Farms Community Facilities District Board of Directors]: A Resolution of the District Board of the Gladden Farms Community Facilities District, Pima County, Arizona, approving the fmal budget for the Gladden Farms Community Facilities District for the fiscal year beginning July 1, 2013 and ending June 30, 2014. Board Chairman Honea opened the public hearing. Presented by Erik Montague. There were no speakers from the audience, and Chairman Honea closed the public hearing and asked for a motion. Motion to approve by Board Member Comerford, second by Board Member Bowen. Passed unanimously. Meeting Minutes for June 18, 2013 Page 2 of 13 B 2: PUBLIC HEARING: Resolution No. GFCFD2 2013-03: [Marana Town Council acting as the Gladden Farrns (Phase II) Community Facilities District Board of Directars]: A Resolution of the District Board of the Gladden Farms (Phase II) Community Facilities District, Pima County, Arizona, approving the final budget for the Gladden Farms (Phase II) Community Facilities District for the fiscal year beginning July 1, 2013 and ending June 30, 2014. Board Chairman Honea opened the public hearing. Presented by Erik Montague. There were no speakers from the audience, and Chairman Honea closed the public hearing and asked for a motion. Motion to approve by i�ice Chair Post, second by Board Member Ziegler. Passed unanimously. B 3: PUBLIC HEARING: Resolution No. SSCFD 2013-03: [Marana Town Council acting as the Saguaro Springs Community Facilities District Board of Directors]: A Resolution of the District Board of the Saguaro Springs Community Facilities District, Pima County, Arizona, approving the final budget for the Saguaro Springs Community Facilities District for the fiscal year beginning July l, 2013 and ending June 30, 2014. Board Chairman Honea opened the public hearing. Presented by Erik Montague. There were no speakers from the audience, and Chairman Honea closed the public hearing and asked for a motion. Motion to approve by Board Member Bowen, second by Board Member Ziegler. Passed unanimously. B 4: PUBLIC HEARING: Resolution No. VFCFD 2013-02: [Marana Town Council acting as the Vanderbilt Farms Community Facilities District Board of Directars]: A Resolution of the District Board of the Vanderbilt Farms Community Facilities District, Pima County, Arizona, approving the final budget for the Vanderbilt Farms Community Facilities District for the fiscal year beginning July 1, 2013 and ending June 30, 2014. Board Chairman Honea opened the public hearing. Presented by Erik Montague. There were no speakers from the audience, and Chairman Honea closed the public hearing and asked for a motion. Motion to approve by Board Member McGorray, second by Board Member Kai. Passed unanimously. COUNCIL ACTION A 1: Resolution No. 2013-061: Relating to Personnel; approving salary schedules for classified and temporary employees for fiscal year 2013-2014. Presented by Suzanne Machain, who noted that this is a routine administrative item brought to Council on an annual basis. Motion to approve by Council Member Comerford, second by Vice Mayor Post. Passed unanimously. A 2: Ordinance No. 2013.012: Relating to Finance; adopting the amended Town of Marana Comprehensive Fee Schedule and designating an effective date. Resolution No. 2013-062: Relating to Finance; declaring the amended Town of Marana Comprehensive Fee Schedule as a public record filed with the Town Clerk Ordinance No. 2013.012 and Resolution No. 2013.062 were taken together for a vote. Presented by Erik Montague. Motion to approve by Vice Mayor Post, second by Council Member Bowen. Passed unanimously. A 3: PUBLIC HEARING: Resolution No. 2013-063: Relating to Budget; adopting the Town of Marana's fiscal year 2013-2014 final budget. Mayor Honea opened the public hearing. Presented by Erik Montague, who noted that since the tentative budget was presented to Council on May 22, there was a modification due to the recent reorganization of the departments of development services and public services. To that end, some transfers were made between departments which did not affect the final numbers. The fiscal budget is set at $82,882,224. There were no speakers from the audience, and Meeting Minutes for June 18, 2013 Page 3 of 13 Mayor Honea closed the public hearing. Motion to approve by Council Member Bowen, second by Council Member Comerford. Passed unanimously. A 4: PUBLIC HEARING: Relating to Community Development; discussion and consideration of the Arizona Department of Housing Community Development Block Grant Mayor Honea opened the public hearing. Presented by T. VanHook, who noted that statutes for CDBG Colonia Set Aside funds require the specific agenda items be handled between this public hearing and the second public hearing. 1. Discussion of CDBG National Objectives and the types of activities that can be funded by CDBG; 2. Announcement of the amount of CDBG funds expected to be available in the Regional Account, State Special Projects Account and the Colonias Set Aside; and 3. Discussion of the estimated amount of funds that will be used to benefit low-moderate income persons (as opposed to being Slum Blight or Urgent Need activities); and 4. Discussion and citizen input regarding possible projects to be funded with CDBG funds; and 5. Discussion of proposed CDBG activities likely to result in displacement of persons, families, businesses, non-profit arganizations and farms and the local government's intention to minimize displacement pursuant to the local government's Anti-Displacement Policy; and 6. Review of past performance of CDBG funded projects. Ms. VanHook noted that Arizona has approximately $1.7M in combined FY 13-14 Colonia Set Aside funds. We'll need to address blight or services for low to moderate income families under this application, and the town will be requesting funding for services for low to moderate income families. She then asked for discussion and comment within the community. Staff is also recommending that the town, for these Colonia fall-out funds, connect low to moderate income families to the Honea Heights sanitary sewer conveyance system within that neighborhood. Staff is also asking the community to provide input on other projects that they feel would fit under the parameters of the CDBG National Objectives. If we hear public input on a project other than connection to the sanitary sewer system in the Honea Heights neighborhood, the projects would have to be analyzed against that criteria. We also would like to present to the public a review of our CDBG performance in the past. The town has received CDBG money through Pima County's allocation since 1987. The total amount we have received exceeds $4M. We have had no audit findings and have been compliant with those contracts through both our single audit and the review of Pima County staff and their program. Staff would appreciate any input from Council or the community to pursue funding under the Colonia fall-out funds. Mayor Honea closed the public hearing, there being no speakers wishing to come forward. No direction was given at this time except to keep going forward. A 5: Resolution No. 2013-064: Relating to Community Development; ap�oving and authorizing the Town manager to implement the Honea Heights Sanitary Sewer Conversion Project Emergency Connection Funding Policy. Mayor Honea recused himself from the discussion and left the dais, stating a conflict of interest. Vice Mayor Post conducted the discussion on this item and stated that he would like to hear T's presentation, then take questions from the Council and see if Council can come up with a direction, which would include a motion, and then open the meeting to public comments. He noted that this is a very difficult issue, and there are many different opinions. Hopefully, they can come up with a resolution tonight. Ms. VanHook began by reviewing previous activity which staff brought before Council for emergency hookups on this issue beginning on April 16, 2013. Staff is looking for policy direction on how and when to apply general fund dollars to emergency hookups in that neighborhood. The policy before Meeting Minutes for June 18, 2013 Page 4 of 13 Council tonight is the revision per the input that Council offered at that time. There are a number of options for consideration. She then described the options in the backup materials. The policy also outlines the application process to determine income qualifiers. Council Member McGorray asked about the option of putting a lien on the property. She asked if it could be clarified that there has to be a sale of property rather than just a transfer of properiy before the lien was applied for repayment. Council Member Kai asked what the cost of hookups would be. The sewer connection fee is $4,554. Ms. VanHook: The $12K total cost was based on the average construction on the sanitary sewer conversion that had already taken place in the neighborhood. Council Member Kai asked if the town goes out to bid on each individual case to see if we can get the best buy for hookups, or is there one contractor who hooks up everybody at a certain rate? Ms. VanHook replied that it has been done both ways depending on the circumstances. When there has been emergency or single hookup through the housing program, staff has gotten three quotes per the town code. Council Member Bowen noted that the application in the packet didn't include anything about assets which he asked about last time. I think it's important for people to qualify on the basis of income but also on assets they own elsewhere. This is an expensive proposition for the town, and the promises or guarantees or hopes that were made to the residents of Honea Heights were based on money that never came in. So while we continue to search for avenues of money that can provide full sewer hookups which will increase the value of all properties in the neighborhood and benefit including the community, I think there ought to be some provision in our emergency procedures to recognize not only the fact that someone has an income of such and such but also that they own property or assets somewhere else, that that be included in the form. Ms. VanHook noted that that question has been asked before in similar programs, and she apologized for overlooking that request from last time. Staff has been unable to find an example — it's not in the HiJD or USDA guidelines that we've seen. Many times individuals or families will use those assets as the generation point for the income as long as they qualify under a certain income level. That's the normal litmus test for these programs. It's very different than applying for a bank loan, where you have someone evaluating the payback ability based on assets and income. Many of these programs that I've been involved with over the years run on income only, mainly because those are the guidelines established by the federal government, and d�ose are the guidelines established under the affordable housing and infrastructure statutes throughout the state. Council Member Bowen: So normally it's not required because it is assumed that assets that are owned would turn into income, and they'd show up on the income statement anyway or is it relevant to the discussion? Ms. VanHook replied that it's not that it isn't relevant to the discussion, but she's never seen brought into part of the evaluation in the past. Council Member Comerford noted that she was part of the original Council that heard this item back in 2002 as was Council Member McGorray and Council Member Kai, and the situation wasn't hooking up people because their property values were going to go up. The situation was to hook people up to help protect our water table and our aquifer. Because Gladden Farms had put in a main line, there was an opportunity to then hook up Honea Heights to that main line and then protect that water table. When the people in Honea Heights were first approached, and I think at that time it was going to cost about $7500 per home, and they were not happy. They wanted to keep their septic systems and not pay the cost of hookups, which at that time was only $10 a month sewer fee. The project moved along; we promised that the homes would be hooked up by the Town of Marana with partnership of Pima County. And I've got all the breakdowns, all the numbers. They got a partial grant to cover the main sewer. The rest of it was going to be covered by the Town. Well, as things happen, the project kind of fell apart. We had three different companies come in and finish the main line that ended up costing three times the amount that was projected, the recession hit, the Town hit hard times, and where were we going to find the rest of that money?. So now we have a main line and nobody hooked up. We got Moore Road hooked up when we fixed the road, because we didn't want to build Moore Road and then tear it up to hook up the homes on that street. We've done two emergencies and we've done 18 other hookups. There's 32 in total. I have a really hard time with going back on a promise and a responsibility to do the right thing. If I'd had the Meeting Minutes for June 18, 2013 Page 5 of 13 financial paperwork shoved in my face and was told `go along with this; we'll hook this up and you now need to qualify, and by the way we need all this information, everybody in your household, all the social security numbers, all the amounts made by every single person in the household,' I would be greatly offended. I can only tell you how I feel and the numerous phone calls, and the people that I've talked to from the area, how they feel. I think as being part of that original Council that I have an obligation to do the right thing. Councit Member Ziegler spoke to what Council Member Comerford said about the promise. Promises were made from the County to the Town of Marana, and as Council Member Bowen pointed out, the money came to a point, and then the County pulled back and the contractors went bankrupt. She further noted that as much as this issue is emotional for the Council, it's emotional for the residents, but the Council is a business-making body. I think I can say for all of us, for the people who own their home in Honea Heights, we want to come through with what we hope is the promise that was made — that Patti (Comerford) made, that Herb Kai made, that Carol McGorray made. And I don't think there's anybody here who's going to dispute that. What we have to work through now with your help is which one of these options do we pick. I think we need to help everybody in the Honea Heights neighborhood who has a home who is the homeowner of that home, and if your sewer, under the criteria that the Town will provide, bubbles up and is a safety hazard to you, your children, and surrounding homes, that you would come to the Town of Marana, fill out our form, and we will give you the money to do that, or reimburse; however Council wants to do that. I don't know if we can pick (it) up. It is a big endeavor. Let's look at some numbers. If your septic goes bad, to hook you up to the sewer, it's about $4500. Ms. VanHook said that there's a permitting fee of about $153; the sewer connection fee is $4,554; plus construction costs and mitigation of the existing septic system — estimated at about $7,000. We've seen them as low as $3,000 or $4,000 or as high as $12,000. Vice Mayor Post recapped the discussion: If you own a home and you live in that home, the Town will hook you up on an emergency basis as described in the packet. Council Member Ziegler: Yes. And I would be waiving the income amount. Council Member Bowen stated that he wanted to address certain comments made by Council Member Comerford. She mentioned two things — promises made and doing the right thing. Certainly, even Council Member Comerford would understand the differences between promises made. There is a difference between promising to care for our children and promises to take expensive family vacations when the resources to do so are no longer there. When we're talking about promises made, I think we're talking about the second type of promise. Money was promised to the Town of Marana, and that money was removed from the Town of Marana. Now, Marana made a promise, but it was a contingent promise based on promises made to us. Because of that, we're now in the situation of wanting — and we will never stop seeking money in order to hook up fully all the homes in Honea Heights. All we're talking about is an emergency policy here. But because we had that money removed, our ability to simply walk in wholesale and hook everybody up is gone. And the Town needs to be careful and a good steward of what they've got. So when we're talking about doing the right thing, I think we're also talking about not only doing the right thing for Honea Heights people, but the right thing for all the people of the community of Marana and not laying on their backs things that they didn't sign up for either. That said, I think that since we're dealing here only with an emergency clause, only with something that happens in the event your septic system fails, we will never stop seeking grants, funds and money to hook everybody in the community up. If those funds become available, we're going to do it, even if your septic system doesn't fail. But if there's an emergency that happens, we need to be able to act. And the question before us is how do we respond to that situation. How do we respond to someone of you whose septic fails and it presents a health hazard not only to you but to your neighbors, and as a result to the whole community. With that in mind, I think that we should recognize that not everyone living in that community has the ability to deal with that kind of a financial load. Who's got $11,SOO lying around to do that? A lot of people here do not. Meeting Minutes for June 18, 2013 Page 6 of 13 And so the Town needs to take steps to ensure the health and safety of everyone in the Town, and I think then with that in mind — with an emergency angle -- we would be best served if by recognizing that some people have more of an ability and some have less. And I would be in favor of a policy that on a sliding scale recognizes that some have no ability to take care of that, and those people that qualify in such a way that their income is so low that they couldn't pay for this kind of a thing at all, that they're already on the edge. They would not pay anything. But on a sliding scale that increases from that point, we recognize that you have the ability to take on some of the load yourself as a resident of that community. And you help the Town, the Town's general fund and the Town in general by taking on what load you can. And so I would be in favor of a sliding scale that takes into account sewer hookup fees and construction costs, and I'm ambivalent about placing a lien on the property in order to be paid back those costs. But I am in favor of some program that places some load on the homeowner according to their ability to pay. Council Member Kai stated that he feels whether you're owner occupied or poverty level or above, the Town needs to hook you up. We've already spent $4.8M on this project, and it's still not done yet. We all want to win and get what we want, but it's all negotiating and finding the middle to find something that will work. I think Council Member Ziegler's proposal is something to move forward with. Council Member Comerford asked Ms. VanHook to verify that there was no money taken away from the Town. The original grant was $990K, and that went for the construction of the main line. But that wasn't all it was going to cost. It was going to cost up to $1.5M, and the Town made that commitment to cover the additional costs. The Town made the commitment to cover the cost of repaving the streets at another additional $710K. The Town made a commitment of putting in sidewalks at another $590K. Unfortunately, as the project took off, there were complications in construction with the company going bankrupt, another company coming in; Pima County was handling the construction. The cost ended up being close to $3M just to put in the main line — right? Ms. VanHook confirmed that that was correct. Council Member Comerford: So there was actually no money taken back from us, and the County held up their end of the deal that basically said `you're getting this amount, and that's it. And if it costs anything more, Town of Marana, you're going to have to cover it.' So we kept our promise in taking care of the main line. What the issue is now is we also made the commitment to hook up all of the residential properties. And so now we're out of funds; we went way over budget, and I think the Town has done a good job of coming up with an emergency fund policy, but I agree with Council Member Ziegler that we don't need to go the route of all the financial stuff. I think where the difference is right now with this Council is owner occupied. They keep calling it investment property to me, and I call it rental property. Those houses that are (renter) occupied are not entitled to any assistance because they're investor properties. And thaYs where I have a problem because that was still a promise back then that all those properties would be hooked up; we're going back again to protection of the water table, not necessarily who owns what property and what the value of that property is. It's about integrity and it's about me being on the Council at that time, and this isn't the only community that we've gone out and helped. There've been several other communities that we've invested Marana dollars in. There was Grier Road when we built Town Hall. Grier Road was torn apart because the CMID water line that went through eroded the road, and after we got in there and got into construction, we were very grateful that no buses ever fell through that road, `cause that's how bad it had gotten. We went in and made the repairs; CMID couldn't afford to make the repairs. We made those repairs and hooked up everybody on Grier Road at that time. And I only know that because I sat on the Building Committee, and it ended up being built as part of Town Hall. We've gone in Marana Estates and put in lights and sidewalks. We got grant monies to do that. I totally agree that we don't have however many million dollars it's going to cost to make Honea Heights right, but I believe we need to make Honea Heights right in the best capable way we can do it. Vice Mayor Post asked for Council Member Comerford's specific recommendation. Council Member Comerford: I think that the $75K that we have put in this year's budget and that was also put in last Meeting Minutes for June 18, 2013 Page 7 of 13 year's budget is to cover emergency hookups as needed in that community until we can get grant dollars or some kind of funds to cover that entire system. To me, it doesn't matter as long as it's occupied property — homeowner or rental property — we need to protect the water table and do what the original project was made for. And if we do it on any emergency basis right now with that $75K — we've only had two come through so far — and I know there's some in the (coffer) — at least two, I think — that we can do the emergency clauses on the ones as needed and take care of this community. Council Member Ziegler: We have done work in other areas, but I just want everyone to know that out of our general fund, we have spent over $2M in Honea Heights. That's not grant money; that's not fed money. That's $2M. That's a lot of money, and we've not made this kind of investment in other parts of our town. People who work in this town have not had a raise in over four years. So it's not like we're out there spending big bucks somewhere else. So for us to move forward and do this I think is a good move, and I agree with what Council Member Comerford says. I made the motion to do it — with one stipulation. I also was on the board in 2007, and I do remember some of the stuff that went on and we have documentation. I never (recall) in the whole that this was going on in 2007 when the County pulled out did we ever talk about anything but owner occupied. Rental income did not come into play in this money. I will challenge the staff to go back and find that. To me, if you are a person who owns land, and you're renting to somebody, and you're renting your home or a house that you own to someone and you are charging them whatever it is a month, that's money coming to you. And from what I've unders�ood, you are responsible as the owner of the house to people you're renting to for say, the roof, the washer/dryer, the air conditioning. Those are things that you as owner of the home have to provide to the renter. If something goes wrong, you call your landlord, and he fixes it. That's why I take a separate route with Patti (Comerford). Those properties in Honea Heights that are owned by different people, those have never been included in anything we've ever talked about. Because if something happens to their septic tank or to their air conditioning or to anything in their home, the person who owns that home fixes it. That's the only difference that I see here. If you're renting in Honea Heights, you need to go to the person you rent from and get that person to fix whatever it is you have. Because they've been taking the rent from you for all those years. Hopefully, they have put some of that money aside. Council Member Kai: I would like to speak about the investor-owned property. If the Town of Marana pays for the hookup and the hookup fees and hooking up that investor lot, of course the Town will file a lien on that property to get money back later when that property sells, that's basically a loan from the Town of Marana to the investor. Our town is not in the money lending business, and to me if you're an investor, you put your money on the line and take your chances. But for the town to up-front this money, and we get paid back later, that in my opinion is a loan, and the town is not in the lending business. Council Member McGorray: Just for clarification, now that it's been presented to us, three compartments. One was low-income qualifying, and probably the town will take care of all the issues. The other one was a homeowner lives on the property — does that qualify as low-income? And then there is like six options for us to choose from. The third thing of this presentation tonight is a landlord situation. A person might own one home or several homes there, and they rent them out. There are six options there. There's the complexity of what we're dealing with in a nutshell, so you understand better some of the discussions that are going on. Vice Mayor Post: Well, we're not really getting anywhere yet, so let's go ahead and go to the speaker cards. Hopefully, after we hear from everybody that wants to speak to this item, we can go ahead and get a motion. Billy Schisler addressed Council as a long-time resident of Honea Heights. He referenced prior construction in the Honea Heights. Kim Harris spoke on behalf of her mother, who has no money and should be put on a list for an emergency hookup. Ray Bomesberger, who said he just wanted to go over Meeting Minutes for June 18, 2013 Page 8 of 13 what he was promised whenever the sewer came in (to Honea Heights). Nema Shapiro spoke and said she was the youngest grandchild of the Honea's. Elizabeth Barr, who has been a resident of Honea Heights for 14 years. Maribel Lopez, spoke on behalf of her parents, Felix and Norma Lopez. Betty Horrigan, Honea Heights resident, who spoke on the integrity of the town and the investments the Honea Heights residents have made to the town. David Morales presented a speaker card, but did not speak. Vice Mayor Post stated that what the Council is trying to do tonight....Mr. Honea? Ed Honea: I didn't fill out a speaker card to which Vice Mayor Post replied he would have to do. Mr. Honea said he was speaking as a resident of Marana his entire life. David Morales called for a point of order and a conflict based on the fact that Mr. Honea recused himself from the dais because of a conflict on this issue. Frank Cassidy rendered his legal opinion that it is generally suggested that a person who is on the Council not speak, but as a matter of First Amendment rights, he's a property owner. Even though he would recommend that any Council Member not attempt to speak as a private citizen because it is hard to take off one hat. From a First Amendment perspective, I think he's got a right if he insists on doing it. But I do think it creates an appearance of conflict because a Council Member does have more sway with other Council Members — there's simply no question about that. I don't think we can demand that Mr. Honea not speak. Council Member Ziegler asked for clarification on conflict. Mr. Cassidy replied and elaborated on the statute governing conflict speaks to proprietary and pecuniary interests. Vice Mayor Post gave Mr. Honea the option of speaking or not. Mr. Honea continued. In the early days of this promise, there was no differential between owner occupied or rental properties. He went on to note that he has a personal interest in this matter with his family having owned property in Honea Heights for 65 years. The property to which he's addressing is a mobile home park which he would have to shut down to pay for all of the hookups because the hookups cost more than the property is worth. Council Member Ziegler commented on Mr. Honea's remarks. Vice Mayor Post: Let's see if we can come to some kind of a resolution that will get this thing moved down the road. I'd appreciate that. Council Member Ziegler: would you like me to make a motion? Vice Mayor Post: Well, just before you make a motion, I just want to reiterate what we're going to try to do. We're going to try to enact an emergency clause tonight that continues to keep everybody whole moving forward while we're looking for funds to hopefully finish this project. On that note, I would entertain motions. Council Member Ziegler: I' d like to make a motion — it's not exactly on here — well, let me try Option 1. I move to adopt Resolution No. 2013-064, approving and authorizing the Town Manager to implement the Honea Heights Sanitary Sewer Conversion Project Emergency Connection Funding Policy with Option 1 right now, so that would be Option 1, is "treat non-low-income owner occupied households the same as low income owner occupied households, meaning the town will authorize the use of emergency funds to pay the full cost of connecting the property to the sewer system, will obtain all appropriate permits and will contract for connection to the system and decommissioning of the existing system." So that's Option 1. Vice Mayor Post: I have a motion on the floor. Is there a second on that motion? Council Member Bowen: I'll second it for purposes of discussion. Vice Mayor Post calls for discussion. Council Member Bowen: I'd like if I could at least one point of clarification. First of all, I want to thank all of you who came and spoke from the floor, and I want to say, especially Ms. Horrigan, I'm sympathetic, and I want to do the right thing. The issue before us, in my mind, isn't a matter, to me at least, what is a decision of integrity and what isn't, but what is the decision of integrity. Now those of you who've been here far a long time feel that you know exactly what that is, and I'm trying to come into it and do the right thing. So you can just bear with us as we try to sort through this, because we want to do the right thing, and we do not want to take away from anyone those promises that were made or deep-six the integrity of this Council or this town. So as we work through this, please bear with us. Ms. VanHook, was I wrong when I said that some funds that had been made available to us then were not made available to us; that, in fact, Pima County did everything that they were supposed to do, and Meeting Minutes for June 18, 2013 Page 9 of 13 everything else that was supposed to be done full and completely by the town according to your understanding? Ms. VanHook responded that nothing was taken away from the town. In the original IGA with Pima County that established the relationship under the grant program, Pima County did commit to seeking additional grant funds and/or neighborhood reinvestment GO bond funding to do the connections from the conveyance system to the individual properties. To that end, we have applied to USDA grant funds. We were not able to apply for those funds until we took possession of the conveyance system, because Pima County, during the period of disagreement over the conveyance system, was unwilling to forward an application on behalf of the residents of Honea Heights, and they had the legal standing to do so. In addition, no new general obligation bond election has been held since the date of the original IGA, so no funding to do those individual hookups could have been included under the neighborhood reinvestment program. Mr. Davidson interjected and said that to add to that there was an intergovernmental agreement that the town had with the County that laid out that the County was going to reduce impact fees for this particular project — this program, and that was not renewed by the County. They actually stopped the program, and we were not able to continue forward. So that definitely had a financial impact upon our ability to continue to hook up residents under the existing guise of what was laid out by the County through the grant, and then the shared responsibility through the County's obligation and the Town's obligation. Council Member Bowen: All right, so to summarize, simply speaking as a result of a fight we got into with Pima County, the money went away to finish these hookups. Now that we own the sewer system completely, we can apply for those funds that the County was once going to apply for, and we may be granted those funds in order to finish the job, is that correct. Ms. VanHook, that is correct. We were able to submit an application to the U.S. Department of Agriculture's Rural Development Office. If we will or will not be eligible for that funding based on the 2010 census, we are yet to have that determination made. And later on the agenda, we have an opportunity to possible apply for other funding under another program with different parameters. Council Member Bowen asked if there were any parameters and restrictions in the use of the USDA grant that has been applied for — income guidelines.... Ms. VanHook responded that under the USDA Colonia program, they treat the neighborhood as a whole, so we're anticipating that if we were to get USDA funding, that that grant contract would not require an income qualifier, because USDA considers the neighborhood as recertified as a Colonia in 2011 as meeting their benchmark. Other federal funding agencies don't take the same opinion, but under the USDA funds' past programs, each Congress is able to allocate under their own rules. Under the previous rules which have no funds allocated to them at this time, we would be able to do that. Vice Mayor Post asked Ms. VanHook how they treat rental properties — the grant? Ms. VanHook responded that the USDA rural development dollars are about rural development and not necessarily owner occupied versus rental. They're about establishing drinking water, appropriate drainage, streets and roads and public sanitary sewer systems in rural areas, much like internet and other infrastructures coming in through the US Deparhnent of Agriculture based on the mandate when they were created by Congress in the 1800s. They create an area as an area and qualifies as an area, and individuals in that area fall under the rules. Vice Mayor Post: do they specify that they (sic) have to be a home on the property or is there any specification there? Ms. VanHook: yes, it would be for residential properties only. And it's my understanding — we've never actually read the gant agreement between the USDA and Pima County — they've been unable to produce that for us. It's my understanding that it's for residential properties only. Vice Mayor Post: lived in residential properties, whether they're rental ar owned? Ms. VanHook: I don't know the exact language on that. The USDA does refer to `occupiable' structures and continuously occupied structures in their various guidance that come out with the grant proposals. Vice Mayor Post: so you're speculating that in the case a grant comes through, it will apply to occupied structures in that neighborhood, is that correct? Ms. VanHook: my projection based on past programs produced by USDA for similar types of grant(s) would be that it would be continuously occupied occupiable structures. We may have a continuously occupied unoccupiable structure, and that would fall out of the parameters of the grant. Meeting Minutes for June 18, 2013 Page 10 of 13 Council Member Ziegler: Can I— listening to the back and forth — can I revise my... Vice Mayor Post: Council Member Bowen, would you be agreeable to an amendment to her motion? Council Member Ziegler: I don't know if this is the proper place or venue to put it, but if indeed we get grant money — CDBG, Colonia, whatever, and we use that money to either hook up emergency people — or let's say we've done that and we've got grant money — that's fine with me to hook up whoever you've got left. Is that money to be used in Honea Heights to hookup anybody that's left — I'm all for that. I'm sorry I was short-sighted on that. For tonight's venue, we're trying to take little steps, but, yes. If any kind of grant money comes in then I would say I don't care if it's owner occupied. I would rather have a priority that it be owner occupied, and then if we finish with that, and we're lucky to get more, and then if you want to go to non-occupied or vacant lots, that's fine with me. Vice Mayor Post: for discussion on your motion, Roxanne, my personal opinion is that we stick as close to any guidelines of any grant that we might get Council Member Bowen: Yeah, I'd like to add to that Vice Mayor. It sounds to me that it would be a great inequality to the residents of Honea Heights if we ask them to pay on a sliding scale money which then later on would come to someone at no cost simply because it was provided by a grant, in other words, it seems to me that our emergency procedures should match somehow or another the grant money that would come in. And if the grant money's going to be available to hook up anybody, then our emergency procedures should somehow dovetail with that. Ms. VanHook: I understand what you're saying. Before you is a policy only to use Town of Marana general funds in an emergency situation. Council Member Bowen: Right, and I understand that, but I'm just saying that if that emergency policy that we're voting on tonight were to somehow differ from the grant money that would become available, that would propose for us a great inequality. Because if we were to put in our emergency poliey restrictions or provisions that cause people to pay stuff that future people under a grant provision wouldn't have to pay for, then it would be an emergency policy that unduly burdens someone today. Ms. VanHook: Council Member Bowen, I think I understand what you're getting at. Let me explain what the issue with that is. The issue is that this is an emergency policy for our general fund dollars. Under grant programs, Council Member Ziegler mentioned USDA and CDBG, which would be HiJD and Human Services. The parameters for application of those dollars vary greatly. So under USDA grant funding, all occupiable continuously occupied structures — residences — could be hooked up. Under CDBG — a different funding source, a different grant program — there would be income qualif"iers regardless of the location of the property. If we were to put in a policy to capture all of it, we have to remember that we need to use federal dollars and local dollars uniformly across the program. So what this policy does is allow us to put an emergency procedure in place while we pursue what the parameters of the other funding may be. Vice Mayor Post: Why don't we just vote on it, Roxanne? Frank Cassidy: Mr. Vice Mayor, the item is agenda-ized as the emergency connection funding policy, so the thing that's before you can only deal with the emergency policy, so the thing that Council Member Ziegler was talking about as well — if we get some grant money in the future — which way will we go — that's not really agenda-ized for this meeting. Vice Mayor Post: Would you still like to amend your motion, Ro�nne? Council Member Ziegler: I guess not because I was kind of doing a priority thing — we take care of the emergency first as T. has set forth and then again with any other funds — I guess I'm getting out of the parameters then. Once we've got the emergency finished, then I don't have a problem with the rest. I guess I'll leave my motion as it was. Dave, I think you seconded it. Council Member Bowen: The original motion I seconded it, although I would modify it now. Vice Mayor Post: We'll vote on that motion. All those in favor: Council Members, Ziegler, McGorray and Kai in favor. Opposed: Council Members Bowen, Comerford and Vice Mayor Post. Motion failed. Council Member Bowen: So, Vice Mayor, I have a motion. Council Member Bowen moved that all occupied properties within Honea Heights qualify for full payment under emergency procedures. Vice Mayor Post seconded the motion. Discussion ensued, and Meeting Minutes for June 18, 2013 Page 11 of 13 Council Member Bowen clarified that any lot that has an inhabitant on it — not a vacant lot that has a septic system. A human being has to live on it. Vice Mayor Post: a habitable lot that is currently occupied. Council Member Bowen: whether the person owns it or whether they rent it. Vice Mayor Post: I assume you're trying to structure it so that it is similar to a grant that would come along, is that correct? Council Member Bowen: that's right. Vice Mayor Post: so that we're not changing policy in midstream. We can always strengthen the policy but not broaden it. Mr. Cassidy inserted that the motion just said occupied, and then in your discussion you added the idea of habitable. But I think the presentation was occupied and occupiable which means occupied and habitable. He's not sure the motion and the second are consistent. Councit Member Bowen stated that he would further clarify the motion to be owner occupied and renter occupied. Mr. Cassidy stated that he understood the meaning of occupied and that would apply to an owner or a renter. The question is if the house would be condemned by the building deparhnent, because even though somebody's living there and we go out there and it's not habitable, under the normal approach that T. is talking about, a property has to be occupied and occupiable, in other words habitable. Council Member Bowen said he would make that as part of his motion. For clarity, Council Member Ziegler asked if it could be occupied by someone who owns the home or occupied by someone who rents the home. Council Member McGorray interjected: and must be habitable. Council Member Ziegler: so I guess you're saying that even though someone rents the home, you don't feel that the person who owns the home is responsible for that. Council Member Bowen stated that his idea is that he wanted the Council's motion for emergency procedures to dovetail somehow with eventual funding, and that would be agnostic to whether someone owned the property or whether they simply rented on it. Vice Mayor Post called for the vote. Motion passed 6-0 with Mayor Honea not voting. Mayor Honea returned to the dais to continue with Item A 1. ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1: Relatin t�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 noted that the current legislative session has finally come to an end, and staff has provided a briefing last week as to the two major issues we were watching — TPT and consolidated elections. We have provided a bulletin, and the Mayor has provided a briefing of how the session turned out, which is positive. We are going to have our consultants, TriAdvocates, come down in August and provide a full briefing where we can get into much more depth, but if you have any questions, you can contact any member of the Manager's office, and we can provide a more detailed briefing. Mayor Honea noted that the State Senate has passed a resolution that says Council terms cannot be cut anywhere in the state, so we will have elections in September and November of 2016 and 2018. I don't think we'll have to take any formal action. The Governor did back off on construction sales tax; so that issue is done. The TPT bill passed, but the construction sales tax portion, which is worth millions to our communiiy, was not in it. Mr. Cassidy interjected that regarding the previous conversation on consolidated elections and what the Legislature did right after this agenda was posted actually requires some modification of this because the way the agreement reads assumes that there are going to be elections in 2015, and as you correctly stated, under the bill that was passed, it will be 2016, so there has to be a slight modification to the agreement. And we might be able to simplify it also based on a debate that I had at the Arizona City Attorney's Association conference. Meeting Minutes for June 18, 2013 Page 12 of 13 D 2: Resolution No. 2013-065: Relating to Administration; approving and authorizing the Mayor to execute the Third Amendment to the Employment Agreement between the Town of Marana and Town Manager Gilbert Davidson. Presented by Jane Fairall, who pointed out that before she begins, there is an executive session listed under Item E 2. To discuss and evaluate the performance of the Town Manager, and I know in past years, we've done the executive session first before we took action on the actual agreement, in case you wanted to do that. EXECUTIVE SESSIONS. Nfotion to go into executive session on Item E 2 by Vice Mayor Post, second by Council Member McGorray. Passed unanimously. 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)(1) to discuss and evaluate the performance of Town Manager Gilbert Davidson. Council returned to the dais at 9:35 p.m. and Vice Mayor Post made a motion to renew Mr. Davidson's contract at the salary of $175K and to purchase I DO hours of vacation time from Mr. Davidson. Second by Council Member McGorray. Passed unanimously. 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). Mr. Cassidy noted that for clarification while we're on the record, with the change you just talked about and with the consolidated election change before we went into executive session , he will go ahead and put the modified agreement on the next agenda as a consent item. ADJOURNMENT. Motion to adjourn at 9:36 p.m. by Vice Mayor Post, second by Council Member McGorray. Passed unanimously. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on June 18, 2013. I further certify that a quorum was present. � �!�'t-- Jocelyn . Bronson, Town Clerk Meeting Minutes for June 18, 2013 Page 13 of 13