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HomeMy WebLinkAbout12/03/2013 Regular Council Meeting MinutesREGULAR COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, December 3, 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 7:00 p.m.. Town Clerk Bronson called roil. All Council Members were present. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Mayor Honea asked for item C1 to be moved to Council Action before item A1. Motion to approve as amended by Vice Mayor Post, second by Council Member McGorray. Passed unanimously. CALL TO THE PUBLIC. No speaker cards were presented. PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. No reports. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. Mr. Davidson reported that the Council Executive Report for November is on the dais and presents some exciting activity for the town. Meeting Minutes —12/03/2013 PRESENTATIONS P 1: Relating to Budget; an update of the financial status of the Town's General Fund for the first quarter of the 2013-2014 fiscal year. Presented by Erik Montague, who noted that these are preliminary results for July through September. He also noted that the Budget in Brief included in the Council packets covers in more detail some of the items he will present tonight. He focused on the "big three:" transaction privilege sales tax, shared revenues, and licenses, permits & fees which represents 95% of the revenue portfolio. The overall revenue portfolio is concentrated on economically sensitive revenues. He stated that we are where we had hoped to be for the period. One of the important threads for sales tax is retail — it's just under 4% higher year over year. This is a positive trend we've seen over the past two fiscal years. There were mixed results on Black Friday. It has been reported that there were more shoppers, but they spent less. We won't know those numbers until January when we get them from the state, and will be included in the second quarter results. Contracting is a pleasant surprise. There has been some traction in the last and current fiscal year. A significant number in this classification were tied to new home construction when he came to the town. During the recent recession, those numbers fell. What we're seeing now is a return of those production builders. We don't have any major public works projects right now, and some significant portions of contracting tax are tied to that type of construction. Most of the other revenues in that category are close to where we expected. One that is lagging is the sales tax audit. When Mr. Montague reports those numbers for the second quarter in early February, we will be closer to the $200K. Overall, year-over-year we're about 15.9% higher in the categories of retail, utilities, construction, restaurants, insurance and real estate (primarily commercial leases which may suggest that occupancy or rents or both are increasing), and hotels. Most of the increase (77- 78%) is attributable to contracting. We are allocating 3 of those 4 cents to the transportation fund. Only one cent is staying in the general fund. Shared revenues, about 25% of revenues overall, is pretty much where we had hoped to be. State shared sales tax is lagging slightly, but looking at holiday sales, we anticipate that to pick up. Urban revenue sharing — income tax — is right on the mark because we know what that number is. Auto lieu is coming in slightly higher than what was budgeted. We rely significantly on the Department of Revenue to provide these numbers. One number not in the general fund but relevant to infrastructure and how we maintain our streets inventory and assets is the Highway User Revenue Fund (HURF). We are about 26% collected for the first few months. License, permits and fees are primarily from single family residential permits. At this time, it is a significant improvement over the past number of years. For the first six months we've issued 178 permits out the door. We're a little ahead of where we thought we would be. We budgeted for about 45 per month and right now are averaging about 59. Looking at what was collected in October and November, it will be reduced slightly. But overall, we're within expectations or slightly higher. Regarding expenditures for the first three months, we're pretty much where we'd expect to be, especially with personnel. Contracted services can fluctuate, but operating supplies and equipment and capital outlay and transfers traditionally lag. It takes a while for us to get caught up. We have significant amounts of dollars obligated through a purchase order process, but the actual spending is not shown here. We will be transferring out in December about half the Meeting Minutes —12/03/2013 amount shown for required debt service, so these numbers will change significantly in those areas, and that will approximate budget as we get closer to the end of the fiscal year. So for the month of September, revenues exceeded expenditures by about $851K; year-to-date we're about $2.SM, but keep in mind that some of these projects and programs and these budgetary transfers will still need to happen, and these numbers will change when you see this again. He then entertained questions. Council Member Bowen asked about the franchise fee on slide number 7. Mr. Montague responded that the fee is through an agreement the town has with Comcast, and they pay a quarterly franchise fee. For the first quarter, it's $89K. He also responded to the question of what a bank protection fee is -- a fee attributable to the cost of getting flood protection for certain residences. Regarding slide number 4, Council Member Bowen asked how Mr. Montague arrived at 3.82% above budget for retail. Mr. Montague clarified that the figure is year over year, so the months of July, August and September are an average over the same three months a year earlier. The numbers that we won't know for several months have to do with the holiday sales. Because Marana is a program city, we won't get those numbers until late January or early February. Council Member Kai asked about franchise fees. He asked if Southwest Gas pays franchise fees for residents in our jurisdiction. Mr. Montague stated that Southwest Gas is paying on a monthly basis on actual sales of gas as a commodity to individual users within our service area. Council Member Kai asked if Frank Cassidy would look into Southwest Gas paying the town a franchise fee. Mr. Cassidy responded that there had been some preliminary discussions over the years with various utilities to pay franchise fees. The only problem with that is that the utility tends to show the franchise fee that's attributable to each payee in their bill so that they can let their customers know that the town is charging a franchise fee which is being passed onto the customer. Historically, it's not been a very palatable thing for the town to pursue, but it is something to look into for certain utilities. Council Member Kai just asked the staff look into the cost benefit aspect. CONSENT AGENDA (Excluding Item Cl). Motion to approve the ConsentAgenda as amended by Council Member McGorray, second by Vice Mayor Post. Passed unanimously. C 1: Resolution No. 2013-110: Relating to Development; approving the assignment of Owner/Developer rights and responsibilities under the Marana Spectrum Development Agreement to VP Marana 160, LLC. This item was taken up under Council Action. Presented by Frank Cassidy, who noted that this is the assignment of rights from Kimco to Vintage Partners and VP Marana 160. He asked for this to be removed from the Consent agenda because David Scholl from Vintage Partners is here, and he wanted to give him an opportunity to introduce himself and his company to Council. Mr. Scholl addressed Council, and said he is one of six partners that comprise Vintage Partners. Their company is about 2 1 /2 years old, but the six partners have about 30 years of experience in land development and retail shopping development. For about the past three years, they have been pursuing Kimco to acquire this property. In May, Kimco contacted Vintage Partners and said they had the approval to go ahead and sell this property. Vintage Partners expects to close on the property on December 12, 2013. He noted that Vintage Partners has been working with town staff over the past few months and Meeting Minutes —12/03/2013 seem to be making progress in responding to a significant amount of user interest on the property, and they are excited about working in Marana. Council Member Bowen said how happy the Council is to be working with Vintage Partners and that Town staff is eager and ready to help them in any way they can to make the project go forward. Mr. Scholl thanked Council Member Bowen and noted that his statement reflects the same sentiment he has received from staf£ He described staff as very professional, also reflecting the Council's commitment to move forward. Council Member Ziegler echoed Council Member Bowen's comments, and noted that this project is going to be very important far Marana, especially along the I-10 corridor. She asked if he needed any help choosing the stores for the center. Mr. Scholl responded that in addition to his company's credentials as land and shopping center developers, he feels there will probably be some other developers interested in purchasing part of the land, and eventually to develop their specialty as well. They always approach the community and seek input as to what the community is looking for in the way of tenants. We have a history of doing a lot of outreach and focus groups, and there's no reason not to continue that here. As far as the other developers, Vintage Partners will encourage them to reach out as well. Further, he said it was refreshing to see how well the town and the department of transportation worked together to put that kind of investment at that interchange. With that kind of investment and that kind of foresight, he said the town was owed a development team that would match that with good vision and bring that property forward in a responsible manner. That's what they are committed to. Mayor Honea concluded by thanking Mr. Scholl and Vintage Partners for choosing Marana. Motion to approve by Vice Mayor Post, second by Council Member Bowen. Passed unanimously. C 2: Resolution No. 2013-111: Relating to real estate, authorizing the acquisition by negotiation or condemnation of lands and property rights, if any, needed for the Costco Drive Reconstruction Project, Town of Marana Project No. ST034 (2013-20). C 3: Resolution No. 2013-112: Relating to Development; approving a final plat for Continental Ranch Retail Center — Westside Resubdivision #3, Lots 4 and 13. C 4: Resolution No. 2013-113: Relating to Public Works; approving and authorizing the implementation of the Town of Marana Facilities Master Plan C 5: Approval of November 19, 2013 Council Meeting Minutes LIQUOR LICENSES L 1: Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a special event liquor license application submitted by Jonas Hunter on behalf of the Greater Oro Valley Arts Council DBA The Southern Arizona Arts and Cultural Alliance (SAACA) for a Big Band Bash Senior Prom to be held on January 18, 2014. Presented by Jocelyn Bronson, who noted that this license application was distributed to the appropriate departments for review, there were no comments, and staff recommends approval. Motion to approve by Council Member Ziegler, second by Vice Mayor Post. Passed unanimously. Meeting Minutes —12/03/2013 BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A 1: PUBLIC HEARING: Ordinance No. 2013.027: Relating to Development; amending the Land Development Code of the Town of Marana, Title 16 (Signs) by adding a sign type definition for Electronic Message Displays to Section 16-OS-01 and amending Section 16-14-08 establishing standards for Electronic Message Displays Resolution No. 2013-114: Relating to Development; declaring the amendment to the Land Development Code of the Town of Marana, Title 16 (Signs) adding a sign type definition to Section 16-OS-Ol and amending Section 16-14-08 as a public record filed with the Town Clerk. Mayor Honea declared the Public Hearing open. Presented by Brian Varney of the Planning Department. The proposal is to amend Title 16 of the Land Development Code (LDC), which is the sign ordinance. He noted that the definitions and standards of Electronic Message Displays (EMD's) within the LDC are a product of a Sign Code Taskforce. Some of the benefits of this type of signage is that it allows businesses to advertise in a more dynamic format, allowing them to control their signage and their ability to display the name of their business but also sales and events. Staff wants to bring this opportunity to all businesses within the town and will also help to consolidate signage so that multiple businesses can advertise on a single sign and eliminate the number of signs along major roadways. The proposal is to allow only for commercial and industrial use. They must be integrated into a free-standing pole sign or a ground monument sign, which are typically allowed for commercial and industrial uses now. Further, the electrical component can occupy up to 50% of the sign, or a maximum of 40 square feet. We're limiting signs to static message displays, which means that the message must be still for 30 seconds before it changes. So there's no animation, travelling or scrolling, and the message is transitioned instantaneously at a minimum of 30 seconds. You can change to another message after 30 seconds. The maximum brightness at night would be controlled by the town's outdoor lighting code. There is a curfew within the code that applies to the signs. Staff put together some simulated signs which he presented at various locations around town to give Council an idea of the size of a sign in relation to environment. Mayor Honea asked for any speakers from the public. There were none, and he closed the public hearing. Council Member Bowen asked is these designs are a starting point or if they were expected to reflect the philosophy of the town about electronic message displays and what we want in the future. Mr. Varney responded that the taskforce didn't want to propose anything too elaborate at this point. As the community becomes more comfortable with this type of sign, they could become more intensive. But any change would have to come before the Planning Commission and ultimately the Council for approval. He noted that staff has been meeting with representatives of the business community for a number of months, and the outcome of those conversations was to start with a static message display because that's what the business community felt they could accept. They want to see what could help them in their business and also what would be attractive and aesthetically pleasing in our community. If there is a center with multiple businesses, the single pole sign could advertise each business for a minimum of 30 seconds. Or another option would be to advertise the name of the business for 30 seconds and in Meeting Minutes —12/03/2013 the next frame advertise a special or a community event. Motion to approve the ordinance ancl resolution by Council Member Bowen, second by Vice Mayor Post. Passed unanimously. ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1: 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. Mr. Davidson noted the next legislative session is approaching. Staff will be bringing before Council on December 17 the Council's standard policy as it relates to the types of issues that we advocate for and also in conjunction with the Arizona League of Cities and Towns through the resolutions process. If there are any specific items we need to be aware of or think about, we can add those to the list that we need to pay attention to and instruct our lobbyists on the floor of either the House or the Senate. Mayor Honea also stated that he sent all Council Members a copy of what PAG and the RTA want to send to the legislature. He was not happy with it. He encouraged all Council to read it and contact Gilbert Davidson if they have comments or something to add or remove. The meeting is Thursday. He doesn't want to arbitrarily support it if there are things any of the Council can't support. 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. ADJOURNMENT. Motion to adjourn at 7:35 p.m. by Vice Mayor Post, second by Council Member McGorray. Passed unanimously. CERTFICATION. I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on December 3, 2013. I further certify that a quorum was present. Meeting Minutes —12/03/2013