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Home My WebLink About02/25/2014 Study Session MinutesN yr`y . qt MARANA 7 STUDY SESSION MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85 653 Boardroom, February 25, 2014, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member 1-lerb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member STUDY SESSION CALL 1 ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 6:02 p.m. by Town Clerk Broiisoit called roll. Council Members Bowen and Ziegler were excused. There was a gL101 ur11 present. PLEDGE Or AI,I,E GIA.NCE /INVOCATION /MOMF -. NT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA.. .Motion to al►)l)rore by Tice Mayor Post, second by Council Member McGorray. Passed unanimously 5 -0. CALL TO THE PUBLIC. No speaker cards were presented. DISCUSSIONIDIRECTIONIPOSSIBLE ACTION 1: Relating to Development; a presentation on the draft streets facilities and parks and recreation facilities development impact fees. Keith Branxa presented stating; what the final fees could be regarding to streets and roads. He briefly gave an overview of the last meeting, including the 11Ps and growth asSLI111ptions. He also covered equivalent demand (EDU) relationships as well as the construction tax credits and the I I -URF credits. The assumptions were adopted February 11. and the draft reports were published on February 1.4, 2014. Tlie next meeting will be the public hearing on March 1. 8. During this period, we will c011ti slue to work witli stakeholders and others until final adoption. February 25, 2014 Study Session Minutes He then discussed the relationship between the impact fee and the EDU (how many trips are generated, square feet of living space and storage and how many trips are primary versus secondary trips). The EDU is the grain determination on how the different fees are based, and they relate back to the single family residence. We take those factors and multiply them by the fee that we've got for the three regions — northeast, northwest and south - and corne up with the raw fee for each Lise and each category. From there we start to track the credits -- is the construction sales tax generated by the building of the facility and the 1-1 -URF credit? But the HURF credit only applies to residential. Once we subtract the credits, then we get to the base fees. None of the base fees take into consideration any infrastructure that a developer may build which they will then also get credited. Throughout this process, we have not touched the levy fee because state law allows Lis to keep a fee in place when it's being used for reimbursement. The Santa Cruz levy fee will remain on many of the northwest lots. That area is anything north of the river and west of the CAP canal. He then described the locations of the three areas. Comparing these fees to our current fees, they are going down attributable to the 10 -year time frame (10- year growth and 10 -year infrastructure plan). What won't be lower are the new fees added to commercial. He gave some examples of what could be expected for the northwest and northeast fee . The McDonald's has the highest proportion of fees. They may seem like high numbers but �u - e far less than what the residential shows from a trip generation standpoint. where it gets trickier is the retail category. The smallest is the Massage Envy next to Firehouse Subs. Sportsman's is a good representation of a junior box; we set the threshold for that at about 75,000 sf. Lowe's is a good representation of a big box. Then there is the Marana Spectrum at Twin Peaks, which is the very large retail and has an extremely large impact fee. We have made them aware of this and have been working with them to make sure they pull their permit before August 1. , 201.4. H -e then went over the proposed versus current fees starting with 2005 and 2013. The prior categories showing no commercial. fees -- what you get for residential is what you get for the total. As our residential fees go down attributable to the 10 -year time frame, we are going to collect less revenue per year than expected; however, the commercial starts coming in and that helps the total. So it becomes very important for the long-range future of our community to balance the commercial with the residential. The next steps will be a public hearing on March 18, adoption of the fees in May and a collection date of AugLrst, 1. , 201.4. There were no questions from the Council. 2: Resolution No. 2014 -016: Relating to Utilities; adopting the Marana water infrastructure improvement plan and Marana sewer infrastructure improvement plan pursuant to A.R.S. § 9 - 463.05 (D) in connection with the Town's 2014 development impact fees for water and sewer. John Kinice presented on the current. status. On February l 1 the town adopted the land use assumptions and in January, 2014, the improvement plans for water infrastructure and sewer infrastructure were approved. The draft reports were published and numerous study sessions have been held, including the public hearing. Other meetings with stakeholders — SAHBA and MPA — were held in December 2013 and January 2014. February 25, 2014 Study Session Minutes 2 Some of the things have changed since the draft report went out on the water infrastructure plan are that we updated all tables based on the February 11, 2014 land use assumptions. We changed the recharge system cost from $1 M to $13M.. We added detailed cost opinions for CIPs; and added more detailed explanations as requested by SAHBA and added more detailed explanations of the Marana WRF acquisition costs and reimbursements. And that relates to the water resource fee associated with the water infrastructure plan. We have identified that 50 percent of what we owe in the Pima County settlement would be coning out of the water resources fee. one of the reasons we got into the wastewater business was not to get into the wastewater business. It was to add those long -term permanent water rights to the benefit of all those water customers going forward by having that renewable, continuous supply. On the sewer infrastructure plan, we also have some updates there. We updated all the tables based on the February 11, 2014 land use assumptions; we moved up the $9M WRF expansion from 2017 to 2016 to ensure sufficient capacity based on updated projections and added more detailed explanations of the Marana WRF acquisition cost and reimbursements. Next steps will be to publish a draft impact fee report by February 28, holding a public hearing on fees in April 1, take the water and sewer fees to Council for adoption on May 6, and the collection of fees would begin on August 1., 2014. . Mr. Kmiec noted that he does not have all the data at this time to know what the final fees will be. 1 -le did state that a portion of the water resource impact fee will pay for the plant. The recent allocation of 515 feet of water that we got will also help pay for the plant. Vice Mayor Post asked if that would be enough or would the town pay for most of it. Mr. Kmiec responded that he anticipates having sufficient revenue to pay for it when we bring the new developments or blocks online. Vice Mayor Post stated that the town is bringing one to Saguaro Bloom, where if it had been reversed and they were asking to bring it to us, how much would the town have to offset of their impact fee? Thom Martinez, the water consultant, stated that the development community is primarily responsible for their offsite improvements. The only responsibility or obligation we have is for any upsizing that would have to be done for that. The only reason that there is a conveyance infrastructure in this particular fee is that the Saguaro Bloom move is so significant -- if there are infrastructure improvements that are outside of these fees that would need development agreements with adjacent developers if they want to partner with the town to build the infrastructure collection system . This is a unique system that we're going after. There's enough capacity in the existing system to convey flows and treat within the next ten years. Motion to approve by Council .Member McGorray, second by Council Member Comerford, Passed unanimously 5-0. 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 February 25, 2014 Study Session Minutes 3 a for the second re Town Council meetin after the date of the re pursuant to Marana Town Code Section 2-4-2 ADJOURNMENT. Motion to adjourn at 6:31 polne b Council Mepniber McGori-a second b Council Member- Kai. Passed unanimousl 5-0. CERTIFICATION I hereb certif that the fore are the true and correct minutes of the Marana Town Council meetin held on Februar 25, 2014. 1 further certif that a q uorum was present. / Yeel y n --' /Bronson, Town Clerk Z o� o 9 MA,�irLIAI 1--Z NJ) A; .# 4 N11 Z'O Februar 25, 2 014 Stud Session Minutes