HomeMy WebLinkAbout02/03/2015 Regular Council Meeting MinutesREGULAR COUNCIL MEETING
MINUTES
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, February 3, 2015 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. Council Member Ziegler was excused; there was a
quorum. present.
PLEDGE OF ALLEGIANCEIINVOCATIONIMOMENT OF SILENCE. Led by Mayor
Honea,
APPROVAL OF AGENDA. .Motion to approve by Council .Member 1�IcGorray, second by
Council Member Bowen,, Passed unanimously 6
CALL TO TIIE PUBLIC. Ken Scoville spoke regarding heritage, preserved artifacts and his
perspective on the Lazy K Bar Ranch site. He proposed the town consider purchasing the ranch
buildings on the Lazy K Bar Ranch and 38 acres for preservation then use existing zoning for the
remaining 100 acres for 70 homes.
PROCLAMATIONS
February 3, 2015 Meeting Minutes 1
MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Council
Member McGorray reported on a SALARA (Southern Arizona Lodges and Resorts
.Association) meeting at La Paloma and noted that she brought back information for Council to
look at regarding roads and transportation and who and how to pay for them.. Brent Deraad,
president and CEO of Visit Tucson, spoke on tourism and the possibility of getting together with
the town of Maran.a and working to bring tourism here. Council Member Comerford spoke
regarding a Chamber government meeting she attended last week. She noted that County
Supervisor Ray Carroll was in attendance. Her issue was the proposed x.10 County gas tax
increase. She warned the audience to not be fooled by the reports being circulated throughout the
County about what will be done with the money. The only numbers she trusts are those
presented by Finance Director, Erik Montague. There have been a lot of promises made by the
County over the years for money that has been dedicated for certain projects which she is not
convinced have been used for those purposes.
MANAGER'S REPORT; SUMMARY OF CURRENT EVENTS
Gilbert Davidson reported that the January Council Executive Report is on the dais for their
a
review.
PRESENTATIONS
P I Relating to Budget; presentation of independent auditor's report and final results of the
Town's General Fund and certain other funds for the 2013 -14 fiscal year. Erik Montague began
by noting that in September preliminary results were reported to Council on the state of the
general fund. Tonight's presentation is a follow -up to that with the final results. This will be the
first time the final results have been formally presented. He presented a high level overview of
the General Fund, Highway User Revenue Fund, Bed Tax Fund, Transportation Fund and
Enterprise Funds. Next, he introduced Starla Anderson, Finance Manager, and then introduced
Marilyn Mays, managing partner of Henry & Horne Auditors who reviewed the Independent
Auditor's Report with Council. Ms. Mays stated that the report is in the CAFR and it is a clean
report which shows that the town's financial statements are fairly presented in accordance with
Generally Accepted Accounting Principles with no significant deficiencies or material
weaknesses or instances of material noncompliance. Further, there are sufficient internal
controls, no difficulties encountered while performing the audit, and no uncorrected
misstatements or disagreements with management.
Ms. Mays did note that there will be an upcoming accounting change as a result of GASB
(Government Accounting and Standards Board) 6$. The Board has issued a pronouncement
taking effect in the production of the next financial statements regarding how to account for the
defined benefit pension plans. Currently, the requirement of the accounting standards is to
disclose the information on those defined benefit plans. Starting this year, the assets or liabilities
February 3, 2015 Meeting Minutes 2
of those plans will go on the town's financials. Right now the pension plans are underfunded, so
there will be a significant liability being presented on the town's financial statements next year.
Next, she noted that the expenditure limitation report was filed in a timely manner, as was the
single audit of the federal dollars. Council Member Bowen asked if the treatment by town
employees was cordial and professional. Ms. Mays noted that it was. Council Member Bowen
then asked about the pension funds which are still being managed by the state. Ms. Mays stated
that these will ultimately be presented on the town's financials, although they are being
disclosed. They are not on the state's ledger which is one of the reasons why GASB is asking
whose books they are on. The state has its own financial reporting statements, and it shows up
there. Mr. Montague added that under the current requirements, what we disclose or what our
obligation is regarding the current contribution is to make the current percentage calculation
based on payroll. Under the new GASB, the town will be required, and has always been
obligated to provide the detail of the health of the plan including its percentage of funding, but
what will change is the accrual of the actual liability for the un- or underfunded portion which
could be significant depending upon the entity and the plan. Council Member Bowen asked if
we have any power to change that if we show the liability on our books. Are we being given the
permission to decide how much to fund it with? Mr. Montague stated that this would segue
directly into the 2015-16 budget, because tied to that we've had some level of control relative to
how we've dealt with the unfunded portion. He then gave an example using the public safety
retirement system of paying that allows us to amortize over 20 years or identify strategies to
spread the payment over less than 20 years to address the unfunded liability. we may not have
access to the same tools for every system. He will spend more time on this in a future study
session because this is one of the elements that is going to provide challenges as to how it will
impact other operations of the town. Council Member Kai asked if Henry & Horne would be
providing an opinion letter to the town. Ms. Mays indicated that the opinion letter is actually in
the CAFR, and it is an unmodified, clean opinion, so it's already been issued.
CONSENT AGENDA. Motion to approve by Trice Mayor Post, second by Council .Member
McCorray. Passed unanimously 6-0.
The Consent Agenda contains items requiring action by the Council which are generally routine
items not requiring Council discussion. A single motion and affirmative vote will approve all
items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to
approve the Consent Agenda, any Council member may remove any item from the Consent
Agenda and that item will be discussed and voted upon separately.
C 1 Resolution No. 2015 -014: Relating to Community Development; approving a contribution of
$500 in support of Marana High Grad Night (Vickie Hathaway)
February 3, 2015 Meeting Minutes 3
C 2 Resolution No. 2015 -015 Relating to Real Property; approving and authorizing the Mayor
to execute the Town of Marana Lease Agreement with Christopher & Stacy Sullivan DBA C &S
Calves, for the lease of approximately 22.88 acres of Town -owned property abutting the north
boundary of the Marana wastewater Reclamation Facility (Frank Cassidy)
C 3 Ordinance No. 2014.005 Relating to Finance; amending the Town of Marana
comprehensive fee schedule; and designating an effective date (Erik Montague)
C 4 Approval of January 20, 2015 Regular Council Meeting Minutes (Jocelyn C. Bronson)
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 Claudio Jesus
Martinez on behalf of the American Diabetes Association for a special event to be held on March
1, 2015. Presented by Jocelyn Bronson, who noted that the application was properly reviewed.
Staff recommends approval. Motion to approve by Vice .Mayor Post, second by Council
.Member Bowen. Passed unanimously 6-0.
L 2 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses
and Control regarding an application for a Person Transfer of a series 9 Liquor Store liquor
license submitted by Alpna Aj it Patel for Sandario Discount Market located at 13 865 N.
Sandario Road, Marana, Arizona 85653. Presented by Jocelyn Bronson, who noted that the
application was properly reviewed and posted. Staff recommends approval. ..Motion to approve
by Council .Member .Bowen, second by Council Member Kai. Passed unanimously 6 -0.
BOARDS, COMMISSIONS AND COMMITTEES
COUNCIL ACTION
A 1 Ordinance No. 2015.006 Relating to Parks and Recreation; amending Marana Town Code
Chapter 13-1 (Parks and Recreation Regulations); amending Section 13-1-2 (Intoxicants and
disturbing the peace) by renaming it as "Spirituous liquor prohibited, permits; exception;
definitions" and rewriting it in its entirety; amending Section 13 -1--3 (Use and occupancy rules
and regulations) regarding possession of glass containers; amending Section 13-1-4 (violations
and penalties); and designating an effective date. Presented by Jane Fairall who noted that this
revision will make several changes to Title 13 of the Town Code related to Parks & Recreation
and regulations in the Park. There are two main changes. The first is to give the Parks director
discretion to issue a permit to allow consumption and possession of both beer and wine in the
parks. The general rules remain the same. Under the current permitting process, only beer is
February 3, 2015 Meeting Minutes 4
allowed. The second main change regards the possession of glass containers in the parks. The
general rules will stay the same; however, the revision to this ordinance would allow the Parks
director to grant exemptions in certain situations where glass containers might be appropriate.
Staff has been in discussions with a couple who want to have a wedding at the event center at the
Heritage Park. This would allow them to have bottles of champagne or even glass candle
holders. She continued, stating that currently there's no exception to the rule that you can't have
alcohol unless you have a beer permit. Staff is proposing to add a section that would state that
these provisions would not apply if someone obtained a liquor license related to an event at the
parks. There was some concern expressed that someone could get a liquor license on our
property, but the only type of license that a person could get at a park would be a special event
liquor license such as the one being proposed for the Heritage Conservancy's Founders' Day
event. Those come to Council and generally are not considered by the State Liquor Board unless
the Town Council approves them. People can consume the alcohol under the constraints of the
liquor license.
Motion to approve by Council .Member Comerford, second by Council Member McCorray.
Passed unanimously 5--0.
ITEMS FOR DISCUSSIONIPOSSIBLL ACTION
D 1 Relating to Utilities; update and discussion regarding progress on the design and
construction of the Marana Water Reclamation Effluent Recharge Project and request for
approval of the necessary funding to complete construction of the project. Presented by John
Kmiec, who stated that the primary goal of the project is to optimize the use of effluent
particularly in north Marana on the wastewater side by 2016. A secondary component is the
potential to create a public amenity co- located with the effluent facility. It's a common theme
throughout Arizona and other communities. Over the last several months, the services of HDR
Incorporated were retained to help staff scope out a full master plan for the facility. Part of that
master plan is to select and review appropriate recharge technology.
At this point, HDR has prepared the basis for the design. A two - phased approach was taken to
get to the goal. The first phase of the design is to get 1.5M gallons per day of effluent into the
ground as well as retaining the property available to be at full capacity at the north Marana plant,
which is 3.5M gallons per day. Several recharge methods were reviewed including injection,
shallow basin and deep basin. The method selected is the deep basin method which he went on to
explain in more detail. Generally, this was based partly on the silt and sand geologic conditions
of the 49 acres east of the treatment facility which was acquired with the treatment plant and
partly to save on future energy costs associated with getting the water to the facility. The deep
basin technique will allow for gravity feed from the plant to the basins without using any energy.
He then went over the various elements of the design on a map which was before Council.
February 3, 2015 Meeting Minutes 5
Mr. Kmiec then reviewed the permanent water resources before discussing the budget and
schedule for construction. Initial construction was $13M. and current impact fees were designed
around a $13M facility. Now that a deep basin technology has been selected, the revised
construction estimate is $1.7M. This leaves a deficit of $400K needed to complete the facility to
get 1.5M: gallons per day in the recharge facility. The additional money can be used from the old
water resource impact fee as we are still carrying a fund balance on that. Moving forward with
permitting with ADwR and ADBQ - we are hoping to provide them with the applications in the
next couple of weeks — our plan is to commission the recharge facility by the Spring /Summer of
2016 and start accruing those credits. Council Member Bowen asked how many acre feet are
used in the north Marana area now that have to be credited back. Mr. Kmiec responded that the
acre feet that would be stored at this facility would benefit all Marana water customers. we are
currently receiving about 350 acre feet. The plant is doing about an acre foot a day. The whole
Marana water Utilities system is using between 2100 and 2300 acre feet a year ---for all
customers.
Motion by Council Member Comerford approve the necessary funding from the current and
past renewable resource fees to complete the construction of the Marana Reclamation
Effluent Recharge Project. Second by Vice Mayor Post. Passed unanimously 6 -0.
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 the other governmental bodies. Mr. Davidson indicated that there was no additional
report other than what was placed at the Council dais the League's Legislative Bulletin dated
January 23, 2015. He will be happy to discuss any questions or concerns regarding any bill.
EXECUTIVE SESSIONS
Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session, which
will not be open to the public, to discuss certain matters.
B I 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 3, 2015 Meeting Minutes 6
a for the second re Town Council meetin after the date of the re pursuant to
Marana Town Code Section 2-4-2 I
ADJOURNMENT. Motion to adjoui-n at 7:55 p.m. b Council Member Bowen, second b
Vice Ma Post. Passed unanimousl 6-0.
CERTIFICATION
I hereb certif that the fore are the true and correct minutes of the Marana Town Council
meetin held on Februar 3, 2015. 1 further certif that a q uorum was present.
i, Town. Clerk
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