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HomeMy WebLinkAbout04/15/2014 Regular Council Meeting MinutesREGULAR COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, April 15, 2014 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 7:02 p.m. Records Administrator Hilary Hiser called the roll. All Council Members were present. PLEDGE OF ALLEGIANCE /INVOCATION /MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Council Member Bowen moved to adopt the agenda as presented and seconded by Vice Mayor Post. Passed unanimously. CALL TO THE PUBLIC. William Kaul, Bret Summers, and Adam Pearce addressed the Council individually, but expressed the shared sentiment that Copperhead Drive, a residential street, was dangerous. All three related stories of excessive speed, vehicle collisions, and general danger to pedestrians on this particular stretch of road. The gentlemen asked the Council to conduct a traffic study to determine the best course of action to protect residents. April 15, 2014 Meeting Minutes 1 David Morales addressed the Council stating the current budget expenditures for various projects and the Town's debt commitments were too high. Mr. Morales also commented that the demographics of Marana are changing as the baby boom generation nears retirement and younger generations are not moving to the area. He cited Marana Unified School District's declining enrollment as evidence of this trend. PROCLAMATIONS Proclaiming May 4 -10, 2014 as Municipal Clerks Week. Mayor Honea noted that Marana's Town Clerk, Jocelyn Bronson, is currently recovering from an accident and the Council wishes her well and hopes for her speedy recovery. MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Mayor Honea attended a variety of important engagements related to regional development. He attended the SAHBA Breakfast, Arizona Builders Alliance Installation dinner, and the Arizona Transportation Board Dinner. Mayor Honea commented that the Arizona State Transportation Meeting was held at the Municipal Center giving Marana some great exposure. Also, Mayor Honea went the State Military Meeting. He expressed his distress at the possibility of Davis - Monthan Air Force Base losing the A -10 Thunderbolt (Warthog) to retirement and not having a replacement. Locally, Mayor Honea attended the ground breaking of Stotz Equipment, which is relocating its John Deer operations to Marana. Mayor Honea said that after speaking with the company's representative, they hope to be open and operational by August 2014. On April 9, 2014, Mayor Honea attended the Police Unity Tour: Tip -a -Cop event at Texas Road House and congratulated the group on raising more than $3,500. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS CONSENT AGENDA. Motion to approve by Council Member Ziegler and seconded by Council Member McGorray. Passed unanimously. C 1: Resolution No. 2014 -035 Relating to Development; approving a final plat for Del Webb at Dove Mountain II, Lots 109 -167 and Block "1" (Future Residential), Common Areas "A" (Open Space), and "B" (Open Space/Drainage). C 2: Approval of April 1, 2014 Council Meeting Minutes April 15, 2014 Meeting Minutes 2 LIQUOR LICENSES L 1: Relating to Liquor Licenses; recommendation to the Arizona state liquor board regarding an application to add sampling privileges to the existing liquor license at Fry's Food and Drug, #36 located at 3770 W. Ina Rd., Marana, AZ 85741. Hilary Hiser stated that an investigation did not find any violations, and staff recommended approval. Motion to approve by Council Member Bowen and seconded by Council Member McGorray. Passed unanimously. L 2: Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a special event liquor license application submitted by Veronica Jacinto on behalf of St. Christopher Catholic Church for a parish fundraiser on May 4, 2014. Hilary Hiser explained the application complies with the criteria for a special event liquor license, and staff recommended approval. Motion to approve by Council Member McGorray and seconded by Council Member Comerford. Passed unanimously. BOARDS, COMMISSIONS AND COMMITTEES B 1: Resolution No. 2014 -036 Relating to boards, commissions and committees: appointing a new member to the Town of Marana Board of Adjustment. Ryan Mahoney stated the Board of Adjustment has one vacancy. The Town received applications from two qualified candidates for the position, Allan Aven and Angelina Grandison. Mr. Mahoney indicated that either candidate would be a welcome addition to the board. Mayor Honea asked if the candidates were in attendance and if so, to please make a brief a statement to the Council. Candidate Allan Avan briefly addressed the Council and expressed his desire to remain actively involved with the community since his retirement several years ago. Candidate Angelina Grandison was not present at the meeting. Vice Mayor Post thanked Mr. Avan for his remarks and then asked Mr. Mahoney what is the current regional representation of the Board. Mr. Mahoney responded that the Board currently has two representatives from the Dove Mountain area, where Mr. Avan currently resides. Vice Mayor Post asked what area Ms. Grandison lived in and Mr. Mahoney informed the Council that she was a resident of the San Lucas area, which currently does not have a representative on the Board of Adjustment. With that information, Vice Mayor Post indicated his preference to appoint Angelina Grandison to the Board to ensure equitable representation of Marana's various communities. Council Member Comerford also thanked Mr. Avan for his interest in participating and expressed her hope that he applies for other board and committee positions as they become available. Motion to approve the appointment of Angelina Grandison to the Board of Adjustment by Vice Mayor Post and seconded by Council Member Ziegler. Passed unanimously. April 15, 2014 Meeting Minutes 3 COUNCIL ACTION Al: Relating to Economic Development; approving the design for the Town's permanent use of the top portion of a freeway monument sign near the Marana Road/Interstate 10 traffic interchange. Ryan Mahoney presented the final representation of the Marana Main Street freeway monument. He stated that the sign follows the Town's design standards and current sign code. Council Member Kai asked if the sign would have any flashing lights and Mr. Mahoney responded that it would not. Several Council members expressed concerns about the visibility of the sign during the night and Mr. Mahoney explained that the sign is backlight. The Council expressed their support for the design. ITEMS FOR DISCUSSION /POSSIBLE ACTION D 1: Presentation: Relating to Budget; review, discussion, consideration, and direction to staff regarding the fiscal year 2014 -2015 Manager's recommended operating budget for the General Fund. Gilbert Davidson explained the presentation would include a review the Fiscal Year 2015's revenue outlook, the Town's investment plan and summary, and conclude with an overall summary of the general fund, including planned projects. Erik Montague informed the Council of Arizona's estimated projected revenue growth for 2014 through 2017 is between 4.0% and 5.5 %. Mr. Montague explained this estimate is within the normal growth range and positively impacts the Town in the short-term regarding its allocation of state shared revenue. However, Mr. Montague did acknowledge projected figures indicate a 2017 state deficit. Mr. Montague reported that the national economic trend shows improvement with an increase in U.S. consumer confidence and slight increases in the U.S. Consumer Price Index. Mr. Montague also noted that regional unemployment rates show a slight decrease while regional single family housing prices show a moderate rise. Mr. Montague transitioned to Marana's specific budget information by reporting an 8% increase in sales tax equaling roughly $1.5 million. Also, the Town's state shared revenue increased by 7% or roughly $500,000. The Town's licenses, fees, and permits revenue increased with the growing development of single family residences and commercial development. Mr. Montague stated the FY2015 revenue summary increased by 9% or just about $2.8 million. Mr. Davidson addressed the Council explaining the Town's investment plan focuses on three core areas related to employees, strategic positions, and necessary resources /tools for production. Mr. Davidson reminded the Council that the Town is making a concentrated effort to implement the recommendations of the Waters Study because the Town's most valuable investment is staff. Mr. Davidson stated the Town would implement market adjustments that include staff pay adjustments and special equity adjustments totaling $537,000 from the general fund and other enterprise funds. April 15, 2014 Meeting Minutes 4 Also, Mr. Davidson explained the Town would implement performance -based salary increases. In September, a one -time adjustment will be awarded to all full -time employees with no disciplinary infractions as either an $800 Exceptional Achiever Award or $400 Achiever Award. Vice Mayor Post requested updates regarding the programs implementation. Mr. Davidson stated that the Council would continue to receive updates as the program becomes more sophisticated in the years to come. Finally, Mr. Davidson reported the Town would spend additional money for staff training and development, as well as other pay and benefits. Mr. Davidson detailed a variety of resources and tool replacement costs for the upcoming budget that included scheduled vehicle replacements, technology applications, facilities projects, and staff equipment totaling just under $2.1 million. He also confirmed that the Town looks to fill several positions in Police, Maintenance, the Manager's Office, Finance, and Utility departments in the upcoming year. These positions are needed to address the Town's continued growth. Mr. Montague concluded the budget presentation by reviewing the FY2015 General Fund Summary. The recommended budget includes projected revenues of $35.5 million and expenditures of $32.7 million. Mr. Montague reminded the Council, that these figures do not include the contingency costs, but that the tentative budget will include those costs. Mr. Montague explained the Town establishes a reserve fund balance of 25% of expenditures. The reserve funds are a one -time use resource and used when needed. Mr. Montague indicated the health of the reserve fund is important to the Town's overall credit rating and provides the financial capacity to address major unanticipated events. Mr. Davidson again addressed the Council to discuss the two possible projects utilizing some of the reserve funds for the upcoming budget year. The first proposed project is the Heritage River Park Ranch Phase 1. Phase 1's total estimated cost of $6.5 million includes roughly $2 million used for the necessary foundation work, i.e. grading and utility infrastructure. The remaining funds allotted for construction are for the arena, grandstands, parking, lights /sounds, and other customer facilities. The second proposed project using the reserve funds is the sewer line expansion costing $7.8 million upfront with the expectation of future developer reimbursement and impact fee generation. Mr. Davidson did acknowledge that the sewer expansion faced challenges regarding timeline for developer payback. Several Council members expressed their concern at the total cost associated with the proposed arena. Vice Mayor Post inquired if the amount proposed was the final or if there would be other April 15, 2014 Meeting Minutes 5 options to review before allocating funds. Mr. Davidson responded that the amount for the infrastructure is fairly static, but of course the bid process will determine the final amount. Both Council Members Ziegler and Bowen expressed support for spending the proposed amount as an investment in the community. Council Member Kai interjected his concern that the total proposed sum of $6.5 million was too large a cost to the reserve fund and the ongoing expense of the arena might not make it beneficial for the Town in the long -run. Furthermore, Council Member Kai suggested a hybrid development plan between the Town and a private entity to construct the arena thus diminishing the Town's expenses. Mr. Davidson responded that the Town has investigated third party partnerships to operate the arena, but it would leave the land owned by the Town and the facility owned by an outside party. Both Mayor Honea and Council Member Bowen expressed sentiments that investment in the Heritage Park and the facilities will have positive impacts on the quality of life for Marana's citizens in the years to come. Council Member Bowen indicated the Town should do something good and bold, but done in a prudent manner. Council Member Ziegler redirected back to the proposed sewer line extension clarifying that the expenditure of funds is upfront. Mr. Davidson affirmed that the construction costs are upfront and if the Council approves both the Heritage Park arena and the sewer extension, the total cost to the reserve fund is $14.6 million. But, Mr. Davidson did acknowledge that during any bidding process for either project the intent is to accept the most economical contract. Council Member Ziegler concluded that the Council should either spend the money to build the arena well or don't build the arena at all. Vice Mayor Post followed -up by stating that after spending $2 million on the infrastructure improvements, the remaining $4.5 million, in his opinion would not be enough to build a suitable arena as envisioned by the Council. He stated that staff should provide arena examples of what the proposed money can buy. Vice Mayor Post closed by stressing the need to be prudent with the funds and suggested this expenditure would make the reserve fund too low. Mr. Davidson emphasized that staff had not received clear direction from the Council regarding desired arena facilities and a target total project cost, but would be happy to provide the Council any option available within the determined preferred cost basis. Council Member Ziegler asked if the Town was retiring any debt soon and if so, would a bond for this project be more appropriate rather than utilizing the reserve fund. Mr. Montague explained the Town is continually evaluating its debt load and working to refinance debt, while still trying to avoid exceeding the terms of credit. He stated that Town uses debt for projects when needed, but must be mindful of the overall debt burden. Mr. Montague noted that the current debt is getting towards the upper end and rating agencies account for that during credit April 15, 2014 Meeting Minutes 6 evaluations. Also, the Town must be mindful of allocating money for future wastewater facility improvements. Vice Mayor Post asked if the Town could use any of the park impact fees to cover the cost of the infrastructure improvements for the Heritage Park. Mr. Davidson responded that it is not a possibility for the arena portion, but the Town can use the park impact fees for other parts of the Heritage Park complex. Vice Mayor Post again stressed his belief the arena would not be a profit center and would continue to require maintenance from the general fund. He stated recreation was important, but must be done in a prudent manner. Council Member Comerford articulated a wish for information on the final cost of the arena with more concrete details. She did suggest the Council move forward on the infrastructure improvements for the land and investigate phased revenue plans to pay for the facility. Council Member McGorray agreed that it is difficult to know if the money spent is for a good value. She concurred with the majority sentiment that the Town should develop a quality arena that includes the possibility of future growth. Council Member Bowen also concurred that he too would like to know the quality type for the proposed arena price range. Mr. Davidson stated it is difficult realize a vision when there is such diversity in arena facility types. He reiterated that staff needs direction from Council to narrow what it wants and then the challenge will be to keep the costs reasonable and determine the best method of payment. Mr. Davidson asked for clarification on what direction to pursue for both the Heritage Park arena and sewer extension projects. Mr. Davidson explained that May 20, 2014 is the date set for the Council to receive the tentative budget and once adopted it will set the final caps for the budget. Council Member Bowen suggested that the Council direct staff to move forward on the infrastructure improvements and provide guidance about some facilities. Council Member Post and Council Member Ziegler both affirmed the use of funds for the sewer extension. 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. Gilbert Davidson noted the State passed a budget and the Governor signed it. The League of Cities and Towns produced a very comprehensive summary of the final budget and he can provide a copy to the Council. Also, the Legislative session is nearing its end and there are still a couple of bills in review. EXECUTIVE SESSIONS April 15, 2014 Meeting Minutes 7 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 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. Upon motion by Council Member Bowen and seconded by Council Member McGorray, the meeting adjourned at 9:14 p.m. Passed unanimously. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on April 15, 2014. I further certify that a quorum was present. 4 -6;� a uut-, --�:) Hilary H. ser, Records Administrator for Jocelyn C. Bronson, Town Clerk April 15, 2014 Meeting Minutes 8