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HomeMy WebLinkAbout03/24/2015 Study Session Agenda PacketM RA N WON N MARANA TOWN COUNCIL STUDY SESSION NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, March 24, 2015, at or after 6:00 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 Pursuant to A.R. S. § 3 8- 431.02, notice is hereby given to the members of the Marana Town Council and to the general public that the Town Council will hold a meeting open to the public on March 24, 2015, at or after 6:00 PM located in the Council Chambers of the Marana Municipal Complex, 11555 W. Civic Center Drive, Marana, Arizona. ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. The Council Chambers are wheelchair and handicapped accessible. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Town Clerk at (520) 382 -1999. Requests should be made as early as possible to arrange the accommodation. This Notice and Agenda posted no later than Monday, March 23, 2014, 6:00 PM, at the Marana Municipal Complex, 115 5 5 W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina Road, and at www.marana.com on the Town Clerk page under Agendas, Minutes and Recent Actions. CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE /INVOCATION /MOMENT OF SILENCE APPROVAL OF AGENDA Marana Council Study Session 03/24/2015 Page 1 of 92 CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities and the Town's overhead projector /document reader. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. DISCUSSION /DIRECTION /POSSIBLE ACTION D1 presentation: Relating to Floodplain Management; discussion regarding the ponding of the Marana parcels known as the El Rio Open Space Area and the sustainability and safety of the area (Keith Brann) D2 Ordinance No. 2015.007 Relating to Parks and Recreation; designating the Marana parcels generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard known as the El Rio Open Space Area as a Town preserve; providing that the preserve shall be subject to the Parks and Recreation Regulations set forth in Chapter 13-1 of the Marana Town Code; and declaring an emergency (Jane F airall) D3 Relating to Public Works; A presentation on the Town's proposed 6 -year Capital Improvement program to be included in the FYI budget (Keith Brann) D4 Relating to Public Works; a presentation on the Town's proposed 6 -year Pavement Preservation program to be included in the FYI Budget (Ryan Benavides) DS Presentation: Relating to Finance; discussion and overview regarding the Public Safety Personnel Retirement System and efforts and options to improve the long -term sustainability of the plan (Erik Montague) D6 Resolution No. 201 5 -027 Relating to Public Works; approving and authorizing the Mayor to execute an amendment to an intergovernmental agreement between the Arizona Department of Transportation and the Town of Marana relating to the I -10 / Twin Peaks Traffic Interchange; and superseding and replacing Marana Resolution No. 2014 -090 (Keith Brann) 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. Marana Council Study Session 03/24/2015 Page 2 of 92 E1 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 Marana Council Study Session 03/24/2015 Page 3 of 92 - r C? RANA -P 115 5 5 W. CIVIC CENTER DRIVE. NIARANA. ARIZ ONA 8 5 65 3 Item D1 To: Mayor and Council From: Keith Brann, Town Engineer Date: March 24, 2015 Strategic Plan Focus Area: Recreation Strategic Plan Focus Area Additional Info: Principal Statement 3, Initiative 16: Identify Regional destinations and recreational areas to showcase, educate and communicate about the Sonoran Desert The ponding of the disc golf course has spurred interest in the possibility of maintaining the area as a nature preserve. Subject: Presentation: Relating to Floodplain Management; discussion regarding the ponding of the Marana parcels known as the El Rio Open Space Area and the sustainability and safety of the area (Keith Brann) Discussion: In 2003, the Town Council adopted Resolution No. 2003 -29 authorizing the Town to purchase excess property from the Arizona Department of Transportation (ADOT) generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard. The property was vacant land and contained an abandoned borrow pit no longer needed by ADOT. The Town acquired the property for recreational and possible future environmental mitigation purposes. The Marana 2010 General Plan identifies the property as dedicated open space being used as a disc golf course and serving as wildlife connectivity habitat between the Tucson Mountains and the Santa Cruz River. In January 2011, the Town Council adopted Resolution No. 2011 -08 approving and authorizing the Town Manager to implement a management plan for the area, known as the El Rio Open Space Area. The property has seen infrequent flooding and ponding of varying duration since its formation in the 1960's. This summer, however the flooding in September widened a prior breach in the former pit wall and allowed effluent to continually flow into the pit. This situation allowed for a stable water surface elevation for a time until the effluent once again changed course in January. Marana Council Study Session 03/24/2015 Page 4 of 92 Issues to be discussed tonight include the history and physical characteristics of the pit, whether a sustainable water surface is feasible, and the safety of nearby neighborhoods. This meeting will provide an opportunity to hear alternative uses of this aquatic amenity. The Pima County Regional Flood Control District has agreed to jointly study engineered options to protect and enhance this area as an amenity for wildlife and riparian conservation. Staff Recommendation: Informational item at this time Suggested Motion: None - information only Attachments: No file (s) attached. Marana Council Study Session 03/24/2015 Page 5 of 92 - r C? RANA -P 11555 W. CIVIC CENTER DRI VE;. KARANA. ARIZ ONA 85 6 5 3 Item D2 To: Mayor and Council From: Jane Fairall, Deputy Town Attorney Date: March 24, 2015 Strategic Plan Focus Area: Recreation Strategic Plan Focus Area Additional Info: Principle Statement 3 - We will capitalize on the uniqueness and value of the Sonoran Desert in our community planning and tourism attraction efforts. Initiative 16 - Identify regional destinations and recreational areas to showcase, educate and communicate about the Sonoran Desert Subject: Ordinance No. 2015.007 Relating to Parks and Recreation; designating the Marana parcels generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard known as the El Rio Open Space Area as a Town preserve; providing that the preserve shall be subject to the Parks and Recreation Regulations set forth in Chapter 13 -1 of the Marana Town Code; and declaring an emergency (Jane Fairall) Discussion: In 2003, the Town Council adopted Resolution No. 2003 -29 authorizing the Town to purchase excess property from the Arizona Department of Transportation (ADOT) generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard. The property was vacant land and contained an abandoned borrow pit no longer needed by ADOT. The Town acquired the property for recreational and possible future environmental mitigation purposes. The Marana 2010 General Plan identifies the property as dedicated open space being used as a disc golf course and serving as wildlife connectivity habitat between the Tucson Mountains and the Santa Cruz River. In January 2011, the Town Council adopted Resolution No. 2011 -08 approving and authorizing the Town Manager to implement a management plan for the area (the "Management Plan "), with the following primary management goals: 1) maintain the site as a disc golf course; 2) preserve the site as wildlife habitat and linkage; 3) eliminate off -road vehicle use; 4) avoid disturbance to cultural Marana Council Study Session 03/24/2015 Page 6 of 92 resources in the area; 5) monitor and remove invasive non - native species; and 6) manage fire threats. A copy of the approved Management Plan is attached as backup material. As described in the Management Plan, the site acts as a water retention basin during floods and the two southern parcels can be inundated for extended periods during the monsoon season. During the 2014 monsoon season, damage to an earthen berm caused the site to remain flooded for an extended period of time. As a related agenda item, Town Engineer Keith Brann will present a report to the Council at tonight's meeting regarding the current state of the site and its projected future condition. As a result of the 2014 monsoon flooding, the site has attracted birds and birders and other recreational enthusiasts. With the added attention and attraction to the site comes the potential for adverse uses causing damage to the site or to the wildlife or cultural resources found there. The proposed ordinance will declare the site as a Town preserve which, pursuant to Arizona Game and Fish Commission rules, will close the area to hunting. Moreover, the proposed ordinance will also provide that the area will be subject to all of the regulations for use of Town parks that are set forth in Chapter 13-1 of the Marana Town Code, thereby preserving the site as a recreational amenity for the Town. Staff Recommendation: Staff recommends approval of the ordinance designating the area known as the El Rio Open Space Area as a Town preserve, subject to Chapter 13 -1 (Parks and Recreation Regulations) of the Marana Town Code. Suggested Motion: I move to adopt Ordinance No. 2015.007, designating the area known as the El Rio Open Space Area as a Town preserve subject to the Parks and Recreation Regulations set forth in Chapter 13-1 of the Marana Town Code, and declaring an emergency. Attachments: Ordinance 2015.007 Exhibit A -Map Area Management Plan Marana Council Study Session 03/24/2015 Page 7 of 92 MARANA ORDINANCE NO. 20159007 RELATING TO PARKS AND RECREATION; DESIGNATING THE MARANA PARCELS GENERALLY LOCATED IN THE FLOODWAY ON THE WEST SIDE OF THE SANTA CRUZ RIVER NORTH OF COACHLINE BOULEVARD KNOWN AS THE EL RIO OPEN SPACE AREA AS A TOWN PRESERVE; PROVIDING THAT THE PRESERVE SHALL BE SUBJECT TO THE PARKS AND RECREATION REGULATIONS SET FORTH IN CHAPTER 13 -1 OF THE MARANA TOWN CODE; AND DECLARING AN EMERGENCY WHEREAS on April 1, 2003, the Town Council adopted Resolution No. 2003 -29 authorizing the Town to purchase excess property from the Arizona Department of Transportation generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard; and WHEREAS the Marana 2010 General Plan identifies the property as dedicated open space being used as a disc golf course and serving as wildlife connectivity habitat between the Tucson Mountains and the Santa Cruz River; and WHEREAS on January 18, 2011, the Town Council adopted Resolution No. 2011 -08 approving and authorizing the Town Manager to implement a management plan for the area (the "Management Plan "), with the following primary management goals: 1) maintain the site as a disc golf course; 2) preserve the site as wildlife habitat and linkage; 3) eliminate off -road vehicle use; 4) avoid disturbance to cultural resources in the area; 5) monitor and remove invasive non- native species; and 6) manage fire threats; and WHEREAS hunting and other uses and activities are inconsistent with the stated goals of the Management Plan; and WHEREAS per Arizona Administrative Code section R12 -4 -321, all Town parks and preserves are closed to hunting, unless open by Arizona Game and Fish Commission Order; and WHEREAS Chapter 13 -1 of the Marana Town Code sets forth regulations for use of Town parks; and WHEREAS the Town Council finds that designating the area known as the El Rio Open Space Area as a preserve subject to Town parks regulations is in the best interests of the Town of Marana. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, as follows: SECTION 1. The property generally located in the floodway on the west side of the Santa Cruz River north of Coachline Boulevard known as the E1 Rio Open Space Area, generally depicted in Exhibit A, attached to and incorporated by this reference in this resolution, and more specifically described in the Management Plan approved by Resolution No. 2011 -08, is hereby Ordinance No. 2015.007 - 1 - Marana Council Study Session 03/24/2015 Page 8 of 92 designated as a Town of Marana preserve and shall be subject to all Parks and Recreation Regulations set forth in Chapter 13 -1 of the Marana Town Code. SECTION 2. The Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of this ordinance. SECTION 3. It is necessary for the preservation of the peace, health, and safety of the Town of Marana that this ordinance become immediately effective; therefore, an emergency is hereby declared to exist and this ordinance shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 24th day of March, 2015. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Ordinance No. 2015.007 -2- Marana Council Study Session 03/24/2015 Page 9 of 92 N Exhibit A-El Rio Open Space Area A 4 No 1 41 ob Aft 4"W !TA ve PI ht3� IV f r 'IT 1 47 A IF vift I r W, - N't, ir ir effl Crl op I T * r7 ow Af ot As Of 9 A Tic IF Is P tn AW OF A4 IL it 'OF lk or kF AN IF MARANA RESOLUTION NO. 2011-08 RELATING TO PARKS AND RECREATION; APPROVING AND AUTHORIZING THE TOWN MANAGER TO IMPLEMENT THE MANAGEMENT PLAN FOR THE MARANA PARCELS ADJACENT TO THE SANTA CRUZ RIVER AND COACHLINE BOULEVARD KNOWN AS THE EL RIO OPEN SPACE AREA WHEREAS on February 3, 2009, the Town Council adopted the Town of Marana Strategic Plan to serve as the foundation for the Town's future and the Strategic Plan identified Recreation as one of the five focus areas for the Town; and WHEREAS the Recreation focus area includes an initiative to identify, undertake and /or complete planning processes for parks, open space, and recreation facilities and an initiative to ensure that future development, land -use and projects protect and showcase the Sonoran Desert and all its inhabitants; and WHEREAS Environmental Engineering and Parks and Recreation staff, Northwest Fire District personnel, members of the disc golf community, and the Marana Technical Biological Team developed a land management plan for the Marana parcels known as the El Rio Open Space Area; and WHEREAS the Town Council finds that adoption of the Management Plan for the Marana parcels adjacent to the Santa Cruz River and Coachline Boulevard known as the E1 Rio Open Space Area as set forth in this resolution is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Management Plan for the Marana parcels adjacent to the Santa Cruz River and Coachline Boulevard known as the El Rio Open Space Area, attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved, and the Town Manager is hereby au- thorized to implement it for and on behalf of the Town of Marana. SECTION 2. The Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the aforementioned Management Plan for the Marana parcels adjacent to the Santa Cruz River and Coachline Boulevard known as the El Rio Open Space Area. X E tudy�Ression 03/24/2015 Ma ge�1'I 0P61) PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 18 day of January, 2011. Mayor Ed Honea ATTEST: U - J - celyn C ronson, Town Clerk APPROVED AS TO FORM: rank silly, Town ttorney lilt OF C ORPOW E CCXD tSEAL r A � IP aaana 8o o ncii c o P tu� '& ssion 03/24/2015 fwgi l -OA V TOWN OF MARANA MANAGEMENT PLAN FOR THE MARANA PARCELS ADJACENT TO THE SANTA CRUZ RIVER AND COACHLINE BOULEVARD Marana Council Study Session 03/24/2015 Page 13 of 92 MANAGEMENT PLAN FOR THE MARANA PARCELS ADJACENT TO THE SANTA CRUZ RIVER AND COACHLINE BOULE PAGE I. Introduction ........................................... ............................... 2 II. Existing Conditions ................................. ............................... 2 Topography and Vegetation .............. ............................... 3 CurrentLand Use .......................... ............................... 3 III. Management Goals ......... ......................... ............................... 3 IV. Management Objectives and Strategies for Achieving Objectives.......... 3 Objective 1: Maintain Community Disc Golf Course ................ 3 Ob i ective 2: Maintain the Three Parcels as Wildlife Habitat and Preserve Movement Patterns ......... ............................... 3 Objective 3: Eliminate Off- -road Vehicle Trespass and Other Unauthorized Activities .................. ............................... 4 Objective 4: Preserve and Protect Cultural Resource Areas ........ 5 Objective 5: Invasive Species Plant and Weed Control ............. 5 Objective 6: Fire Prevention Management ............................ 6 V. Measures of Success ................................ ............................... 6 VI. Monitoring .......................................... ............................... 7 VII. Implementation Plan ............................................................... VIII. List of Contacts ...................................... ............................... 9 APPENDIXES A. Maps ................................................... ............................... 11 B. Fire Management Plan for Marana Owned Parcels along the Santa CruzRiver ............................................ ............................... 13 Management Plan for the Marana Parcels Adjacent to the Santa. Cruz River and Coachline Boulevard 1 Marana Council Study Session 03/24/2015 Page 14 of 92 I. INTRODUCTION The subject property is vacant land located in the floodway of the Santa Cruz River, known as the El Rio Open Space Area. The property is an abandoned gravel pit, owned by the Town of Marana, which consists of three parcels. The legal description is as follows: NE4 NE4 40 Ac Sec. 17 - 12 -12; NW 4 NE4 40 Ac Sec. 17-12-12; and Tri Pcl. in SW Cor S2 SE4 24.93Ac Sec 08 -12 -12 (see attached map #1). The purpose of the Management Plan is to define the recreation and conservation goals on the parcel, ensure that recreation activities and wildlife habitat are compatible, identify the strategies by which the goals will be achieved, and the means by which success will be measured. In addition, this document will address specific management practices to be implemented to maintain a wildlife corridor through the area from the Tucson Mountains to the Santa Cruz River, while avoiding disturbance to cultural resources. II. EXISTING CONDITIONS TOPOGRAPHY AND VEGETATION The site was previously a borrow pit for Arizona Department of Transportation. It was acquired by the Town of Marana in 2003. The area is vacant land in the floodway, with some riparian scrub and tamarisk (Tamarix sp.) vegetation. The Pima County Sonoran Desert Conservation Plan maps designate the site as having high cultural sensitivity. Another constraint is the flood potential when the Santa Cruz River overflows its banks. The site acts as a water retention basin during floods and the two southern parcels can be inundated for extended periods during the monsoon season. The elevation ranges from 2,070 to 2,080 feet and there are berms along the eastern and southern boundaries. CURRENT LAND USE A disc golf course has been constructed on the site, with 18 baskets, 18 concrete launching pads (4'x8'), and railroad tie steps on existing hills. There is also a railroad tie retaining wall at one tee. There are garbage receptacles and two -track trails running to the tee pads and baskets. Current management practices consist of mowing weeds, trimming up some of the trees, and emptying trash. There is an unimproved lot being used for parking and signage on the south side of the site. In addition to the disc golf course, the area serves as a wildlife habitat and has been identified as an important connector for species moving between the Tucson and Tortolita Mountains and the Santa Cruz River. There are regional plans to incorporate this site into a wildlife linkage that is defined in the Marana Draft Habitat Conservation Plan (HCP) including a future crossing at Avra Valley Road and Interstate 10. Roads and development create habitat fragmentation which profoundly affects species and can lead to isolation, a reduction in robust genetic variability, increased edge effect, increased road kill, and can lead to extirpation of species. Wildlife corridors can alleviate some of the Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 2 Marana Council Study Session 03/24/2015 Page 15 of 92 effects of urbanization by allowing species to move through the landscape. Corridors also provide sufficient natural resources to serve as core habitat for smaller species. The parcels are adjacent to an important archaeological site and sherds were identified along the berms. Pima County plans to extend the historic Juan Batista de Anza Trail through the area also. The route followed by de Anza was designated a National Historic Trail by Congress in 1990. The Juan Bautista de Anza Trail runs from Sinaloa Mexico through southern Arizona, and in California up to San Francisco. III. MANAGEMENT GOALS PRIMARY GOALS The primary goals for this site are to (1) maintain the site as a disc golf course; (2) preserve the site as wildlife habitat and linkage; (3) eliminate off -road vehicle use; (4) avoid of disturbance to cultural resources in the area; (5) monitor invasive non - native species and remove except for tamarisk, as described below; and (6) manage fire threats. IV. MANAGEMENT OBJECTIVES AND STRATEGIES FOR ACHIEVING OBJECTIVES OBJECTIVE 1: MAINTAIN COMMUNITY DI5C GOLF COURSE (MARANA ROCK DISC GOLF COURSE) • The disc golf course will remain at its current size (18 holes). See Attached Map #2; • Use (events and tournaments) will continue at the levels agreed upon: o Daily use by individuals and small groups; o Weekly events (Saturday mornings at 8:00am); o Four tournaments per year, consisting of approximately GD people. • Trash pick -up by the Town at receptacles will occur on a regular basis. o Trash cans will be limited to six in number, to reduce the extent of roads and habitat disturbance. Any additional trash cans will be removed and roads will be blocked. Signage will encourage recreationists to pack out their trash from other areas of the course; o Trash will be picked up every two weeks. OBJECTIVE 2: MAIN'T'AIN THE THREE PARCELS AS WILDLIFE HABITAT AND PRESERVE MOVEMENT PATTERNS • Vegetation will be managed in accordance with the plan laid out in this document to maintain habitat suitable for wildlife: o Tamarisk trees will not be cut down unless a native tree (i.e. mesquite, hackberry, etc.) is provided to replace it somewhere on the property. Although tamarisk trees are non - native, they provide significant habitat for Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 3 Marana Council Study Session 03/24/2015 Page 16 of 92 avian species on site such as Bell's vireo, yellow warblers, and Gambel's quail; o Any removal of tamarisk trees will be phased with native tree - planting, so that habitat remains at all times; o Trees directly adjacent to disc golf tee pads may be limbed up to provide shade for recreationists; however, other trees will not be limbed, and understory shrubs will be preserved in place; • Marana will provide an interpretive sign explaining the importance of the site as wildlife habitat, a wildlife connector, and how the public can participate in wildlife habitat protection and enhancement; • Continue to allow seasonal water to flow into the site (i.e. do not block or dam water off of the site); o Restrict activities on site if the vegetation becomes degraded or erosion occurs due to over -use, and revegetate disturbed areas with native plant species as needed; o Trees or shrubs must be planted to coincide with expected rains and must be provided water bi- monthly during the dry season, either with an irrigation system or hauled by trucks. • Human disturbance will be limited to the extent agreed upon in this document. o No harm or harassment of any wildlife species is allowed and signs stating such prohibitions will be posted; o Refer to Objective 1 for disc golf use allowances; o No paintball or similar activities will be permitted. o No lighting will be installed on site; o No permanent bleachers, concession stands, or other structures not specifically described as acceptable in this document will be permitted; o Allowable activities may include birding, research, walking, jogging or other non destructive use of land. OBJECTIVE 3: ELIMINATE OFF -ROAD VEHICLE TRESPASS AND OTHER UNAUTHORIZED ACTIVITIES • The property will be managed so that opportunities for vehicular trespass and vandalism are minimized. Off -road vehicles (ORVs) destroy habitat, fragment habitat by leaving trails, create sound and dust pollution that disturbs wildlife, and could be potentially lethal to wildlife. Actions • The community groups will assist in erecting a perimeter of wildlife- friendly fencing and will patrol the property on a bi- monthly basis, for fence repair needs, vandalism, ORV use, livestock trespass, or other issues; Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 4 Marana Council Study Session 03/24/2015 Page 17 of 92 • The Town of Marana will provide fencing supplies; • "No -DRV" signs will be posted by the Town on the fence on all sides of the property; • "Dogs on a Leash, Pick up After Your Dog" signs will also be posted; • In the event that there are serious vandalism issues on the parcel, Marana Parks & Recreation Department will coordinate with the Police Department; • Interpretive signs for the public will include rules of conduct, allowable activities, and information on the hazards of human and companion animal disturbance to wildlife habitat. OBJECTIVE 4: PRESERVE AND PROTECT CULTURAL RESOURCE AREAS • No ground disturbing activities will be permitted in the area unless a cultural survey is completed; • Marana will coordinate conservation measures to avoid impacts to culturally sensitive areas. OBJECTIVE 5: INVASIVE SPECIES PLANT AND VMED CONTROL Reduce, or prevent, to the extent possible, the proliferation of noxious and invasive plant species. Invasive species often lack the natural predators or diseases that normally keep them in check in their native environment. The invasive species have aggressive growth habits and tend to out - compete native vegetation, reducing the habitat for wildlife. Species such as buffelgrass (Pennisetum cil fare) also create an extreme fire hazard, reaching temperatures that can kill saguaros (Carnegiea gigantea) and other native plants not well ' adapted to a fire regime. Early detection and eradication of small infestations and prevention of new infestations provide the most cost effective method to manage these weeds. Sahara mustard (Brassica tourneffortii) is another invasive weed that will be controlled on the property. There is a large quantity of Tamarisk plants on the site and the Town has a goal of removal, but since the Tamarisk is currently providing habitat for several species, the Tamarisk will be preserved as wildlife habitat until native species are planted to replace the tamarisk. Action • The Town will record the type and location of any invasive species problems noted during general fence and property inspections, bird surveys, etc.; • Marana will use standard treatments for invasive species infestations, within 45 days of detection; • If weeds are sprayed, herbicides that are recommended for riparian areas and wetlands will be used; • Herbicide applicators boots and vehicles will be washed down before entering and leaving the premises; Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 5 Marana Council Study Session 03/24/2015 Page 18 of 92 ■ Tamarisk will be preserved as wildlife habitat until a plan is developed to replace tamarisk, in phases, with native trees and shrubs. • The Town will coordinate with the disc golf club or volunteer organizations for the removal of invasive species on the property. OBJECTIVE 6: FIRE PREVENTION MANAGEMENT The parcels are in the Northwest Fire District and complete fire suppression is the goal at this site. Town will reduce the potential for fire on the parcel by controlling invasive species, posting signage, and coordinating with the Northwest Fire District. The Northwest Fire District has developed a Fire Management Plan for Marana -Owned Parcels along the Santa Cruz River (Appendix B). The property has been GPS'd and broken into fire management parcels with access information for fire fighting crews, expected labor needs in the event of a fire, and fuel load information. Actions • The Town and the NW Fire District have developed a fire prevention and suppression plan for the property. This plan will be updated if circumstances change; ■ Fire suppression is the goal on this property, due to the proximity to houses. The Town will maintain close coordination with the local fire district; • The Town of Marana will monitor and remove invasive species such as Russian thistle (Salsola Kali), Sahara mustard (Brassica tourneforth), and buffelgrass (Pennisetum c 1l i are); • During routine property inspections, the Town will identify any other fire threats in the area; • Interpretive signs will include information on fire hazards such as invasive species and cigarette butts. V. MEASURES OF SUCCESS Measures of success will be used by the Town of Marana to evaluate whether management actions are working to achieve the objectives and goals, and to adjust those actions when necessary, through adaptive management. Success will be measured by the following: ■ Habitat will be maintained with shrubs and trees preserved within the management area; • Marana will monitor and document responses to ORV's, etc. in order to decrease the frequency of issues; • Invasive species will be controlled; Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 6 Marana Council Study Session 03/24/2015 Page 19 of 92 Trees and shrubs that are planted should have a survival rate of at least 50 percent. (It is assumed that the surviving plants will naturally reproduce over time.) Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard Marana Council Study Session 03/24/2015 Page 20 of 92 VI. MONITORING • The Town of Marana will monitor vegetation three times per year to assure that trees are surviving and not being removed and to document invasive species occurrence; • Threats to wildlife will be monitored concurrently during monitoring visits, such as the presence of feral dogs, evidence of human disturbance, etc.; • Marana will coordinate with the USFWS to develop adaptive management strategies if wildlife species or habitat appears to be declining on the property. 1 "A.I.� a$gel 3104I_ XII1�1 1[$)0JI I. MAINTAIN COMMUNITY DISC GOLF TARGET RESPONSIBLE COURSE DATE PARTIES Town of Marana Course will remain at 18 holes NA (TOM) and Marana Disc Golf Club Use will continue at the levels agreed upon in NA TOM and Marana Ob ' ec tiv 1 e Disc Golf Club Trash cans and roads to the receptacles will be NA TOM limited to (6) in number. Any additional trash cans will be removed and 3111211 Marana Disc Golf roads will be blocked Chub Trash picked up will occur every two weeks or 3/1/2011 1 11 0 TOM more often if needed 2. WILDLIFE HABITAT AND CORRIDOR TARGET RESPONSIBLE CONSERVATION DATE PARTIES Tamarisk trees will not be removed, and pruning 3/1/2011 TOM, Marana Disc will be allowed only on trees at golf tees Golf Any removal of tamarisk trees will be phased TOM, Marana Disc with native tree planting, so that habitat remains Golf at all times Marana will provide an interpretive sign explaining the importance this site has to wildlife TOM connectivi Management Plan for the Marana Parcels Adjacent to the Santa. Cruz River and Coachline Boulevard Marana Council Study Session 03/24/2015 Page 21 of 92 The USFWS will review and have final approval of the Land Management Plan for credit in the US FWS H P a s contributing to a wildlife corridor and habitat If vegetation becomes degraded or erosion occurs due to over use, the disturbed areas will As needed TOM be reve etated with nativespecies 3. ELIMINATE ORV AND OTHER TARGET RESPONSIBLE UNAUTHORIZED ACTIVITIES DATE PARTIES Install "No ORVs" signage on perimeter fences Install "Dogs on Leash --- Pick up Amer Your 3/1/2011 TOM Dog" signs Install wildlife - friendly fencing to deter ORV 3/1/2011 Marana Disc Golf use an other d activities d o e d sturba ce ac �v� yes Club and Town Report to the Town Parks and Recreation Director if fence maintenance, vandalism, ORV On°tri g g Marana Disc golf use livestock trespass or other issues are a p Club observed For serious vandalism, coordinate with the Ongoing g g TOM Police Department Include information on the threats to wildlife of 3/112011 T O M h an n um d isturbance on i signs 4. PRESERVE AND PROTECT CULTURAL TARGET RESPONSIBLE RESOURCES D ATE PARTIES Coordinate and fund a cultural resources survey before any ground disturbing activities Ongoing TOM associated with habitat restoration are initiated Coordinate activities to avoid impacts to Ongoing TOM culturally sensitive e ar es 5. INVASIVE SPECIES TARGET RESPONSIBLE DATE PARTIES Monitor invasive species such as buffelgrass and 'n O n in go g TOM R r outine i uss his le dun outs e � s ect�o s Russian thistl Treat invasive species infestations within 45 Ongoing g g TOM days of detection Tamarisk will be preserved as wildlife habitat unless a plan is developed to replace portions of n Ongoing g TOM the tamarisk in ha w ith native trees and phas W e shrubs. Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard Marana Council Study Session 03/24/2015 Page 22 of 92 6. FIRE MANAGEMENT TARGET RESPONSIBLE DATE PARTIES Coordinate with the NW Fire District to update Ongoing TOM the Fire Plan as needed. Fire Suppression is the goal for the property. The Town will maintain close coordination with the Ongoing TOM local fire district Monitor and remove invasive species such as Ongoing TOM Russian thistle and buffel ass Identify any fire threats during routine property going Town of Marana ins ections (Tucson) and monitoring (Marana) Include information on interpretive signs regarding fire hazards such as invasive species 3/1/2011 Town of Marana and cigarette butts VIII. LIST OF CONTACTS Tom Ellis, Marana Parks & Recreation Director Phone: (520) 382 -1954 tellis .marana.com Jennifer Christelman, Marana Environmental Engineering Div. Manager Phone: (520) 382 -2665 jchristelman(&,marana.com Dugger Hughes, Northwest Fire/Rescue District Battalion Chief/Fire Mgt. Officer, Special Dps and Wildlands Phone: (520) 730 -1748 Pager: (520) 712 -8833 dhu Sean Kimble, Northwest Fire/Rescue District Division Chief / Fire Marshall, Life Safety Services Phone: (520) 887 -1010 x 5001 skimble(a1northwestfire.org Scott Richardson, U.S. Fish & Wildlife Service Biologist Phone: 670 -6150 x 242 scott richardson(afws.gov Janine Spencer, Marana Environmental Projects Coordinator Phone: 382 -2658 jspencer(d,)marana.com Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 10 Marana Council Study Session 03/24/2015 Page 23 of 92 APPENDIX A MAPS N O CO N Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 11 O Cfl Mana Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard N w S 1 - z w O O O Ai O Cfl 7i J Ab,. Marana Rock Disc Golf Course 1 - 249' 2-332 0 3 - 241' 4 - 339' 5-3,55 6 :. 524 7 - 508' 8 - 437' 9 - 392' 10 - 287' 11 - 773' 12 - 40& 13 - 387' 14 - 15 - 438' 16 -259' I7- 402' 18-327 1 13 APPENDIX B Fire Mana Plan for Marana owned parcels alon Mana Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 14 Marana Council Stud Session 03/24/2015 Pa 27 of 92 the Santa Cruz River This Fire Management Plan has been developed to provide direction for fire management at the Marana Rock Disc Golf Course and surrounding areas. In the event of fire in this area, the Marana property has been parceled into units with identified fuel breaks. A variety of plant species have been identified, each having unique burning characteristics. Marana property has been identified by a blue border. Because of topography, some of these parcels will require containment strategies to utilize fuel breaks outside this area. This property is directly adjacent to the Santa Cruz River. The river can be accessed by UTV from both north and south of the Marana property. There is a fire hydrant at the corner of W. Lapis Moon Lane and N. Turquoise Moon Way for water supply. The following is a description of each parcel: Parcel A Parcel A has homes along approximately 1 /2 of its western boundary. The west boundary has utilized a dirt easement that is accessed off of W. Milligan Road. This easement is best accessed by UTV or on foot. The North, East and southern boundaries utilize existing two -track roads. The eastern boundary has considerable growth and would require approximately 1.5 hours work by a 20 person hand crew to provide an adequate fire break. Fuels range from light grasses to dense brush. Moderate to extreme fire behavior could be expected. Parcel B Parcel B has utilized existing two -track roads for al boundary is shared with parcel A and would require The remaining boundaries would require little to primarily grasses with areas of moderate brush. behavior could be expected. Parcel C I boundaries. The western the work specified above. no preparation. Fuels are Moderate to extreme fire This parcel utilizes existing two -track roads on all sides. The North and East boundaries are on levees with little to no vegetation and would need minimal to no improvement. Fuels are primarily grasses with a fenced marsh in the southern 1/3 of the parcel. Moderate to extreme fire behavior could be expected. Parcel D This parcel covers the Santa Cruz River and utilizes levees on the East and West banks of the river. The North and South boundaries utilize existing intermittent foot trails and would require 1 to 2 hours work by a 20 person hand crew to provide an adequate fire break. Fuels consist of dense brush with mixed timber and tall grasses. Moderate to extreme fire behavior could be expected. Santa Cruz River water levels could moderate fire behavior. Water levels could also dictate need for additional water supply. Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 15 Marana Council Study Session 03/24/2015 Page 28 of 92 Parcel E This parcel is along the slope of the western levee of the Santa Cruz River. The western boundary is a two -track road along the levee. The remaining boundaries utilize foot trails and would require approximately 1 hour of work by a 20 person hand crew to provide an adequate fire break. Fuels consist of moderate brush and grasses. Moderate fire behavior could be expected. Parcel F This parcel covers the Santa Cruz River and utilizes levees on the East and vilest banks of the river. The North and South boundaries utilize existing intermittent foot trails and would require 1 to 2 hours work by a 20 person hand crew to provide an adequate fire break. Fuels consist of dense brush with mixed timber and tall grasses. Moderate to extreme fire behavior could be expected. Santa Cruz River water levels could moderate fire behavior. Water levels could also dictate need for additional water supply. Parcel G This parcel utilizes continuation of the easement for its Western boundary and the levee of the Santa Cruz River for its Eastern boundary. The Southern boundary utilizes a two -track road and would need little to no improvement. The Northern boundary utilizes a foot trail and would need approximately 30 minutes work by a 20 person hand crew to provide an adequate fire break. Fuels consist of moderate brush and grasses. Moderate to extreme fire behavior could be expected. All fires in this area would be affected greatly by the weather at the time of the fire. Fires in parcels D and F could expect to be labor intensive due to the vegetation. Management Plan for the Marana Parcels Adjacent to the Santa Cruz River and Coachline Boulevard 16 Marana Council Study Session 03/24/2015 Page 29 of 92 R .. ...w.d "� vs � t, §.. r k z z � Management Plan for the Marana Parcels Adjacent to the Santa. Cruz River and Coachline Boulevard 17 Marana Council Study Session 03/24/2015 Page 30 of 92 - r C? RANA -P 115 5 5 W. CIVIC CENTER DRIVE. I A. ARIZ ONA 8 5 65 3 Item D3 To: Mayor and Council From: Keith Brann, Town Engineer Date: March 24, 2015 Strategic Plan Focus Area: Community Strategic Plan Focus Area Additional Info: Principle Statement 3, Initiative 12: Maintain an accurate infrastructure inventory and align future infrastructure expansion with planned and /or complimentary capital improvement projects Principle Statement 3, Initiative 15: Maintain a structurally balanced budget using appropriate revenues with associated expenses The Town's 6 year CIP program is instrumental in achieving these goals Subject: Relating to Public Works; A presentation on the Town's proposed 6 -year Capital Improvement program to be included in the FYI budget (Keith Brann) Discussion: As part of the budget process, the Town adopts a Capital Improvement Program for all capital projects defined as greater than $100,000 in cost with a life expectancy greater than 5 years. Though the program is fixed for the forthcoming fiscal year, the projections of revenues and expenditures are for the following 5 fiscal years. This projection allows the Town to align capital outlay and personnel resources with revenues. Town staff will present the CIP program with discussion of the budget amounts requested for FYI 6 as well as the future projections of the program. Staff Recommendation: This is an informational item. The FYI 6 projects and funding sources will be incorporated in the Town Manager's proposed budget. The projects programmed FYI 7-21 are illustrated for planning purposes and subject to available funding in the appropriate years. Marana Council Study Session 03/24/2015 Page 31 of 92 Suggested Motion: Informational item. Attachments: FY2016 Airport FY2016 Engineering FY2016 Parks FY2016 Utilities Marana Council Study Session 03/24/2015 Page 32 of 92 rogram 2016 2017 2018 2019 2020 Airport Airport Airport Airport Airport Fund Description : Capital Total Capital Total Capital Total Capital Total Capital Total Fund #: 5025 5025 5025 5025 5025 FY Fund Total : - 539,000 - 7,169,000 - 8,769,000 - 16,019,000 Project Expendetures : 539,000 539,000 6,630,000 6,630,000 1,600,000 1,600,000 7,250,000 7,250,000 7,715,000 7,715,000 End FY Fund Balance : - 539,000 - 7,169,000 - 8,769,000 - 16,019,000 - 23,734,000 3ject :)tal 5 Year Total 7,475,000 7,475,000 1 150,000 150,000 325,000 325,000 7,000,000 7,000,000 5,250,000 5,250,000 150,000 150,000 5,100,000 5,100,000 1,515,000 1,515,000 1,515,000 1,515,000 6,919,000 6,919,000 539,000 539,000 6,380,000 6,380,000 950,000 950,000 100,000 100,000 850,000 850,000 1,125,000 1,125,000 225,000 225,000 100,000 100,000 800,000 800,000 200,000 200,000 200,000 200,000 300,000 300,000 1 300,000 300,000 ect Location ort ort ort ort ort ort ort ort plex - o Valley Commerce of the Ina Road /Oldfather Road Intersection d 12A and 12B dario to approximately 4000' west iydale E�redith )in Cloud to Moore Rd. and on Thorydale Rd. Tangerine Crossing to Moore Rd in Adams Rd. to Tangerine Farms Rd. Sanders Rd to western town limits aks Road to Coachline Boulevard in parking lot entrance 2016 2017 2018 20 NW Benefit NW Benefit 1/2 Cent NE Benefit NE Benefit 1/2 Cent NE Benefit NE Benefit I Description : General Fund RICO Area Area (SB) Transport Sales Tax Other Agency RTA Area Area (SB) Total Transport Sales Tax Other Agency RTA Area Area (SB) Total Transport PAG RTA Total Transport Host I Fund #: 1000 2040 3010 3011 3030 3040 3045 3060 3065 3066 3030 3040 3045 3060 3065 3066 3030 3035 3060 3030 38C Y Fund Total : 19,655,224 2,040,000 1,346,166 211,464 8,580,977 1,500,000 1,800,000 9,246,622 728,020 3,015,548 8,551,528 16,500,000 1,400,000 21,140,000 228,020 2,896,035 6,181,048 13,202,000 4,430,000 6,089,044 1,6C (pendetures : 3,347,000 1,000,000 1,346,166 131,464 4,210,536 1,500,000 400,000 9,246,622 500,000 250,000 21,484,788 6,677,000 16,500,000 1,400,000 21,140,000 228,020 2,896,035 48,841,055 4,527,720 465,000 3,965,000 8,957,720 3,027,400 1,6C and Balance : 16,308,224 1,040,000 80,000 4,370,441 1,400,000 228,020 2,765,548 1,874,528 1,653,328 12,737,000 465,000 3,061,644 ear Total 22,800,000 2,000,000 1,000,000 1,500,000 400,000 4,900,000 16,500,000 1,400,000 17,900,000 44,751,677 1,300,000 9,246,622 500,000 250,000 11,296,622 5,226,000 21,140,000 228,020 2,896,035 29,490,055 3,965,000 3,965,000 1,750,000 1,000,000 1,000,000 750,000 750,000 98,000 98,000 448,000 350,000 350,000 755,000 755,000 755,000 172,000 172,000 172,000 900,000 410,000 1,310,000 1,310,000 40,000 40,000 40,000 1,346,166 131,464 435,536 1,913,166 1,913,166 2,075,000 120,000 120,000 1,490,000 465,000 1,955,000 743,290 29,000 29,000 714,290 714,290 2,390,430 107,000 107,000 2,283,430 2,283,430 1,535,000 1 95,000 95,0001 40,000 40,000 1,400,000 1,050,000 50,000 2,794,400 1,194,400 1,6C 383,000 383,000 525,000 plex - o Valley Commerce of the Ina Road /Oldfather Road Intersection d 12A and 12B dario to approximately 4000' west iydale E�redith )in Cloud to Moore Rd. and on Thorydale Rd. Tangerine Crossing to Moore Rd in Adams Rd. to Tangerine Farms Rd. Sanders Rd to western town limits aks Road to Coachline Boulevard in parking lot entrance )gram Fund Description : Fund #: t Location FY Fund Total : Project Expendetures : End FY Fund Balance : !ct 2017 al 5 Year Total 391,735 18,504,476 359,800 766,000 ?35,000 235,000 65,000 65,000 ?35,000 235,000 ?03,250 413,000 ?11,963 2,754,963 12,000 205,000 363,613 211,287 ?90,000 3,290,000 t Location a Heritage River Park ae Harn Park Ballfields 13250 N Lon Adams Road -ruz River protection from Gladden Farms Park to the CAP Canal /Beard House - ine Road east of 1 10 at CAP canal ae Harn Park Parking Lot ide of Santa Cruz between El Rio Park and Avra Valley Road side of Tangerine Road between Camino de Oeste & Camino de Manana eaks Road at the Santa Cruz River - ine Farms rd and Lon Adams Rd ae Harn Park 2016 2017 2018 2019 Desert Desert Education Town -wide Town -wide Pima County Pima County Pima County General Fund Education (SB) Parks Parks (SB) Total General Fund Bonds Total General Fund Bonds Total General Fund Bonds Total 1000 3005 3006 3015 3016 1000 3050 1000 3050 1000 3050 19,655,224 306,265 68,698 211,287 4,642,124 16,308,224 3,239,735 15,920,224 7,580,539 15,474,224 10,789,202 3,347,000 306,265 68,698 211,287 3,298,000 4,331,250 388,000 3,204,735 3,592,735 446,000 7,545,539 7,991,539 10,000 10,754,202 10,764,202 16,308,224 1,344,124 15,920,224 35,000 15,474,224 35,000 15,464,224 35,000 3,204,735 3,204,735 7,545,539 7,545,539 7,754,202 7,754,202 212,000 212,000 388,000 388,000 166,000 166,000 235,000 235,000 65,000 65,000 235,000 235,000 413,000 413,000 306,265 68,698 2,380,000 2,754,963 205,000 205,000 211,287 211,287 280,000 280,000 10,000 3,000,000 3,010,000 a Heritage River Park ae Harn Park Ballfields 13250 N Lon Adams Road -ruz River protection from Gladden Farms Park to the CAP Canal /Beard House - ine Road east of 1 10 at CAP canal ae Harn Park Parking Lot ide of Santa Cruz between El Rio Park and Avra Valley Road side of Tangerine Road between Camino de Oeste & Camino de Manana eaks Road at the Santa Cruz River - ine Farms rd and Lon Adams Rd ae Harn Park n 2018 2019 2016 2020 Renewable 2017 Renewable Water Resource Renewable Water Resource Operating (SB) Renewable Operating (SB) Water Water Water Renewable Resource Wastewater Wastewater Water Water Resource Wastewater Fund Description : Operating Infrastr Infrastr (SB) Resource (SB) Operating Capital Total Operating Infrastr (SB) (SB) Capital Total Fund #: 5000 5010 5011 5015 5016 5030 5035 5000 5011 5016 5035 FY Fund Total : 12,475,290 - 266,268 791,181 1,513,572 - 1,453,504 - 1,086,894 - 7,317,105 15,730,907 - 1,570,324 - 3,801,358 - 11,767,105 eject Expendetures : 1,000,450 1,890,000 2,771,000 838,925 1,800,000 1,219,750 4,450,000 13,970,125 997,500 2,107,500 5,633,000 5,500,000 14,238,000 d FY Fund Balance : 11,474,840 - 2,156,268 - 1,979,819 674,647 - 3,253,504 - 2,306,644 - 11,767,105 14,733,407 - 3,677,824 - 9,434,358 - 17,267,105 5 Year Total 4,895,325 1,000,450 1,000,450 997,500 997,500 740,675 11,500,000 500,000 500,000 5,500,000 5,500,000 11,000,000 1,700 400,000 1,300,000 1,700,000 4,450,000 4,450,000 4,450,000 665,000 133,000 133,000 1,219,750 1,219,750 1,219,750 1,770,000 270,000 270,000 1,500,000 1,500,000 1,092,000 1,092,000 1,092,000 438,925 438,925 438,925 1,100,000 1,100,000 1,100,000 1,069,225 309,000 309,000 1,755,000 1,755,000 1,755,000 135,000 135,000 135,000 607,500 607,500 607,500 1,188,000 2,060,000 740.6751 521.400 133.000 133.000 521.4001 533.250 133.000 133.0001 133.000 icilties eclamation Facility kett Rd. o Clark Farms Blvd arvice Area wastewater plant to Silverbell Rd. East of 1 -10 west of 1 -10 ?ast of 1 -10 flue Bonnet 1 -10 ark Farms to Marana Rd) 2018 2019 2020 Renewable Renewable Renewable Water Resource Water Resource Water Resource Operating (SB) Total Operating (SB) Total Operating (SB) 5000 5016 5000 5016 5000 5016 19,117,156 - 9,998,648 22,891,742 - 10,712,867 27,021,061 - 11,444,523 740,675 133,000 873,675 521,400 133,000 654,400 533,250 133,000 18,376,481 - 10,131,648 22,370,342 - 10,845,867 26,487,811 - 11,577,523 4,895,325 1,000,450 1,000,450 997,500 997,500 740,675 11,500,000 500,000 500,000 5,500,000 5,500,000 11,000,000 1,700 400,000 1,300,000 1,700,000 4,450,000 4,450,000 4,450,000 665,000 133,000 133,000 1,219,750 1,219,750 1,219,750 1,770,000 270,000 270,000 1,500,000 1,500,000 1,092,000 1,092,000 1,092,000 438,925 438,925 438,925 1,100,000 1,100,000 1,100,000 1,069,225 309,000 309,000 1,755,000 1,755,000 1,755,000 135,000 135,000 135,000 607,500 607,500 607,500 1,188,000 2,060,000 740.6751 521.400 133.000 133.000 521.4001 533.250 133.000 133.0001 133.000 icilties eclamation Facility kett Rd. o Clark Farms Blvd arvice Area wastewater plant to Silverbell Rd. East of 1 -10 west of 1 -10 ?ast of 1 -10 flue Bonnet 1 -10 ark Farms to Marana Rd) - r C? RANA -P 115 5 5 W. CIVIC CENTER DRI VE;. KARANA. ARIZ ONA 8 5 65 3 To: Mayor and Council From: Ryan Benavides, Public Works Director Date: March 24, 2015 Strategic Plan Focus Area: Community Item D4 Strategic Plan Focus Area Additional Info: Principle Statement 1, Initiative 1: Maintain and update preventative maintenance plan for Town Assets (Public Works, Utilities, Engineering). The Town's 6 -year Pavement Preservation program is instrumental in achieving these goals. Subject: Relating to Public Works; a presentation on the Town's proposed 6 -year Pavement Preservation program to be included in the FYI Budget (Ryan Benavides) Discussion: As part of the Strategic Plan, the Council adopted the Town's current Pavement Preservation program. Although this program is based on a 6 -year revolving cycle, it is not fixed and allows for flexibility based on available finances, infrastructure needs and roadway assessment. This program allows staff to systematically approach the maintenance needs of our roadway infrastructure while ensuring such factors as longevity, cost effectiveness and quality are met. Staff Recommendation: This is an informational item. The list of streets identified in staff s presentation will be programmed for appropriate surface treatment in the respective years, subject to available funding. Suggested Motion: Informational Item. Attachments: No file (s) attached. Marana Council Study Session 03/24/2015 Page 37 of 92 - r C? RANA -P 11555 W. CIVIC CENTER DRIVE. NIARANA. ARIZ ONA 8 5 6 5 3 Item D5 To: Mayor and Council From: Erik Montague, Finance Director Date: March 24, 2015 Strategic Plan Focus Area: Commerce, Community, Heritage, Recreation, Progress & Innovation Strategic Plan Focus Area Additional Info: Principle Statement 3 of the current Strategic Plan describes that we will invest in a well - managed government that provides reliable services and quality amenities for citizens and businesses. The Town strives to offer a competitive and affordable compensation and benefits package, including retirement, to attract and retain quality employees to provide these services. Subject: Presentation: Relating to Finance; discussion and overview regarding the Public Safety Personnel Retirement System and efforts and options to improve the long -term sustainability of the plan (Erik Montague) Discussion: The Arizona Public Safety Personnel Retirement System (PSPRS) is one of the four retirement systems that the Town participates in. PSPRS was created in 1968 to provide a uniform, consistent, and equitable statewide program for public safety personnel who are regularly assigned hazardous duty by the state or a political subdivision of the state. The Town has been participating in PSPRS since 1983 which covers sworn police officers here in Marana. Concerns surrounding the budgetary pressure PSPRS currently places on local governments, along with pending litigation pertaining to various public retirement systems, have resulted in organizations developing proposals to modify PSPRS in order to improve its long -term sustainability. Staff will present information about the PSPRS plan and information about actions that cities and towns can take to address the liabilities of the system. Also presenting this evening will be Scott McCarty, Finance Director for Queen Creek and also Chair of the League of Arizona Cities and Towns Pension Task Force. Marana Council Study Session 03/24/2015 Page 38 of 92 Financial Impact: Staff Recommendation: Presentation and discussion only. Suggested Motion: Presentation and discussion only. Attachments: PSPRS Valuations Memo PSPRS Actuarial Report Marana 107 Marana Council Study Session 03/24/2015 Page 39 of 92 Board of Trustees PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM Brian Tobin, Chairman CORRECTIONS OFFICER RETIREMENT PLAN Gregory Ferguson, Vice Chair ELECTED OFFICIALS' RETIREMENT PLAN Jeff Allen McHenry, Trustee 3010 East Camelback Road, Suite 200 Richard J. Petrenka, Trustee Phoenix, Arizona 85016 -4416 Randie A. Stein, Trustee Lauren Kingry, Trustee William C. Davis, Trustee www.psprs.com TELEPHONE: (602) 255 -5575 FAX: (602) 255 -5572 MEMO Date: November 14, 2014 To: All PSPRS and CORD Employers From: Jared Smout, Acting Administrator �. Re: June 30, 2014 Individual Actuarial Valuations Administration Jared A. Smout Acting Administrator Ryan Parham Assistant Administrator -CIO We have finally received all the individual actuarial valuations and have them posted on our website for you to retrieve. (Even though the date on each of them is October 27, I promise we only received them this past week.) As such, there are some things you need to know. First, as you review your valuation, you will notice on page A -2 that there are two rates: a contribution rate before phase -in and a contribution rate after phase -in. As you should know, the ruling last year in the Fields case reversed some of the pension reform changes promulgated by SB 1609 in 2011. Specifically, it reversed the new mechanism put in place for determining permanent benefit increases (PBIs) for those retired prior to SB 1609 becoming law. Therefore, because of that reversal, we were required to reinstate the old mechanism for those who were retired as of July 1, 2011. Anticipating the adverse effects of that reversal on the individual employer contribution rates, the Board of Trustees in May 2014 received an estimate of the dramatic impact on the average contribution rate for the entire system (based on 2013 data), and adopted a 3 -year phase -in policy for increases to be reflected in the 2014 valuations, thereby allowing the employers the choice to pay the rate that reflects the full effect of that reversal (the before phase -in rate) or to choose the rate that phased -in the effects over 3 years (the after phase -in rate). If you have seen the consolidated report, page 2 shows the full effect of the PBI attributing to 7.17% of the overall 8.83% increase in the aggregate employer rate, though the full effect of the increase to your individual valuation could be better or worse. While it is recommended that all employers contribute at the rate before phase -in, we recognize the difficulty that such an increase may have on your budgets. However, we want to fully inform you of the ramifications of choosing the phased -in rate, the choice of which leads to the following: • A temporary loss of contribution dollars into the plan • A decrease in funded status at June 30, 2016 • Possible higher contributions for FY 2017 -2018 Once you have had a chance to review your valuation and decide which rate you will choose, we will need to know your choice by March 31, 2015 in order to make the requisite adjustments to our accounting system for tracking and reporting purposes. Instructions on the process for communicating that choice will be given at a later date, but if we do not receive your decision by that deadline, we will implement the before phase -in rate. Other changes to your valuation include an asset transfer from your pension plan to your health plan in accordance with IRS requirements (see Comment 2 on page A -3). While there may be a modest change to the pension funding level as a result of this transfer of assets, there is no overall change to the total funding level. You will also notice more robust census data in Section D that I hope you will find useful. Finally, we wanted to make you aware that we will be holding at least three different employer education /information sessions around the State the first week of January 2015 to talk about the current status of the System, the obstacles we are facing and the efforts being made moving forward. It will also be an opportunity to discuss these actuarial valuations and ask any questions you might have about them. The specifics of when and where these sessions are going Wa rb c �gtbe cess�o ti �, t a later date, so be watching for it Page 40 of 92 GRS Gabriel Roeder Smith & Company Consultants & Actuaries MARANA POLICE DEPT. (107) ARIZONA PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM JUNE 30, 2014 Marana Council Study Session 03/24/2015 Page 41 of 92 Gabriel Roeder Smith & Company One Towne Square 248.799. 000 phone GRS Consultants & Actuaries Suite 8+00 248.799.9020 fax Southfield, MI 48076-3723 www.gabrlelroedeccom October 27, 2014 The Board of Trustees Arizona Public Safety Personnel Retirement System Phoenix, Arizona Re: Marana Police Dept. Ladies and Gentlemen: The results of the June 30, 2014 annual actuarial valuation of members covered by the Arizona Public Safety Personnel Retirement System (PSPRS) are presented in this report. The purpose of the valuation was to measure the System's funding progress, provide actuarial information in connection with applicable Governmental Accounting Standards Board Statements and to determine the employer contribution for the 2015 -2016 fiscal year. The funding objective is stated in Article 4, Chapter 5, Title 38, Sections 843B and 848N of the Arizona Revised Statutes. This report should not be relied upon for any other purpose. This report may be distributed to parties other than the System only in its entirety and only with the permission of the Board. The valuation was based upon information, furnished by the Retirement System, concerning Retirement System benefits, financial transactions, and individual members, terminated members, retirees and beneficiaries. Data was checked for internal and year to year consistency, but was not otherwise audited by us. As a result, we are unable to assume responsibility for the accuracy or completeness of the data provided. Future actuarial measurements may differ significantly from those presented in this report due to such factors as experience differing from that anticipated by actuarial assumptions, changes in plan provisions, actuarial assumptions /methods or applicable law. Due to the limited scope of this assignment, we did not perform an analysis of the potential range of future measurements. To the best of our knowledge, this report is complete and accurate and the valuation was conducted in accordance with standards of practice prescribed by the Actuarial Standards Board and in compliance with the applicable state statutes. Mark Buis, James D. Anderson and Francois Pieterse are independent of the plan sponsor and are Members of the American Academy of Actuaries (MAAA) who meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. It is our opinion that the actuarial assumptions used for the valuation produce results which are reasonable. Respectfully submitted, Mark Buis, FSA, EA, MAAA 2 mes D. Anderson, FSA, EA, MAA MB /JDA:sc e Francois Pieterse, ASA, MAAA 1 Y?iana Council Study Session 03/24/2015 Page 42 of 92 Marana Police Dept. TABLE OF CONTENTS P� Section A Introduction Funding Objective and Contribution Rates .......................... ..............................1 Contribution Requirements .................................................. ..............................2 Section B Funding Results Present Value of Future Benefits and Accrued Liability .... ............................... l Section C Fund Assets Development of Pension Funding Value of Assets (7 -Year Smoothing) ..........1 Development of Health Funding Value of Assets (7 -Year Smoothing) ............2 Section D Census Data June 30, 2014 Valuation Data Summary ............................. ..............................1 ActiveMembers ................................................................... ..............................2 Terminated Vested Members ............................................... ..............................3 Retirees and Beneficiaries .................................................... ..............................4 DROPMembers ................................................................... ..............................5 Section E Methods and Assumptions ......................................................... ..............................1 SectionF Plan Provisions ........................................................................... ..............................1 SectionG Glossary ..................................................................................... ..............................1 Appendix A Accounting Disclosures Schedule of Funding Progress ............................................ ............................... l Schedule of Employer Contributions ................................... ..............................2 Summary of Actuarial Methods and Assumptions .............. ..............................3 GASB Statement No. 45 Supplementary Information ......... ..............................4 OR $Cbuncil Study Session 03/24/2015 Page 43 of 92 .SECTION A INTRODUCTION Marana Council Study Session 03/24/2015 Page 44 of 92 Marana Police Dept. FUNDING OBJECTIVE The purpose of the annual actuarial valuation of the Arizona Public Safety Personnel Retirement System as of June 30, 2014 is to: • Compute the liabilities associated with benefits likely to be paid on behalf of current retired and active members. This information is contained in Section B. • Compare accrued assets with accrued liabilities to assess the funded condition. This information is contained in Section B. • Compute the employers' recommended contribution rates for the Fiscal Year beginning July 1, 2015. This information is contained in Section A. This objective is stated in Article 4, Chapter 5, Title 38, Sections 843B and 848N of the Arizona Revised Statutes. CONTRIBUTION RATES The Retirement System is supported by member contributions, employer contributions and investment income from Retirement System assets. Contributions which satisfy the funding objective are determined by the annual actuarial valuation and are sufficient to: (1) Cover the actuarial present value of benefits allocated to the current year by the actuarial cost method described in Section E (the normal cost); and (2) Finance over a period of future years the actuarial present value of benefits not covered by valuation assets and anticipated future normal costs (the unfunded actuarial accrued liability). Computed contribution rates for the fiscal year beginning July 1, 2015 are shown on page A -2. C a RSauncil Study Session 03/24/2015 Page 45 of A- 1 Marana Police Dept. CONTRIBUTION REQUIREMENTS Development of Employer Contributions for the Indicated Valuation Date Valuation Date June 30, 2013 June 30, 2014 Contnbution for Fiscal Year ending 2015 2016 Pension Normal cost requirement Service pensions 13.95 % 13.36% Disability pensions 2.97 3.10 Survivors of active members 0.62 0.63 Refunds of members' accumulated contnbutions 2.29 2.51 Total non cost requirement 19.83 % 19.60% Employee Contnbutions Total employee rate 11.05 11.65 Less portion used to pay down unfunded liability 3.40 4.00 Net employee rate 7.65% 7.65% Employer normal cost requirement 12.18% 11.95 % Amortization of unfunded liabilities 7.21 % 12.85 % Total recommended pension contribution rate (before phase -in) 19.39% 24.80% Total pension contribution rate (after phase-in) N/A 21.19% Health Normal cost requirement 0.44% 0.43 % Amortization of unfunded liabilities 0.83 % 0.05 % Total health contnibution requirement 1.27% 0.38 % Total contribution rate (before phase -in) 20.66% 25.18% Total contribution rate (after phase -in) N/A 21.57% Minimum contribution re quire me nt (if applicable) N/A N/A The results above are shown both prior to and after the application of the statutory minimum contribution requirement of 8% of payroll (5% of payroll if the actual employer contribution rate is less than 5% for the 2006/2007 Fiscal Year). Please see important comments regarding the contribution on page A -3. C a RSauncil Study Session 03/24/2015 Page 46 of A-2 Marana Police Dept. CONTRIBUTION REQUIREMENTS Comments Comment 1. Unfunded liabilities were amortized as level percent of payroll over a closed period of 22 years. If the actuarial value of assets exceeded the actuarial accrued liability, the excess was amortized over an open period of 20 years and applied as a credit to reduce the normal cost which otherwise would be payable. Comment 2. A transfer of assets from the pension plan to the health plan was made this year. In accordance with IRS rules, assets dedicated to pay retiree health care benefits must be segregated from assets dedicated to pay pension benefits. The Retirement System provided the asset split for the year ending June 30, 2014. This resulted in an increase in the pension contribution rate with an equivalent decrease in the health contribution rate. Comment 3. The pension contribution rate increased significantly for most employers. This arose primarily due to the repeal of certain aspects of SB 1609 which resulted in much larger recognition of liabilities related to Permanent Benefit Increases (PBI). The contribution rate also increased due to the continued recognition of 2008 -2009 asset losses, or in some cases population movements. While it is recommended that employers contribute the full amount, the Board adopted a policy to allow employers to phase -in the pension contribution rate increase over 3 years, if necessary. Results on page A -2 show the contribution rate before and after the phase -in. Plans that have a funded ratio below 50% are strongly encouraged to contribute the full amount prior to phase -in. C a RSauncil Study Session 03/24/2015 Page 47 of 6-3 SECTION B FUNDING RESULTS Marana Council Study Session 03/24/2015 Page 48 of 92 Marana Police Dept. PRESENT VALUE OF FUTURE BENEFITS AND ACCRUED LIABILITY Pension A. Accrued Liability 1. For retirees and beneficiaries $ 7,722 $ 11,027,077 2. For DROP members 513,184 1,509,290 3. For vested terminated members 14309 124 4. For present active members 630,557 585,575 a. Value of expected future benefit payments 18,093,022 1707,770 b. Value of future normal costs (6,539,039) (6,788,027) C. Active member accrued liability: (a) - (b) 11,553,983 10,879,743 5. Total accrued liability 19,932 23,540,591 B. Present Assets (Funding Value) 14,437,155 14,431,215 C. Unfunded Accrued Liability: (A.5) - (B) 5,495,792 9,109,376 D. Stabilization Reserve - - E. Net Unfunded Accrued Liability: (C) + (D) $ 5,495 $ 9,109,376 F. Funding Ratio: (B) / (A. 5) 72.4% 61.3% Health A. Accrued Liability 1. For retirees and beneficiaries $ 146,772 $ 16604 2. For DROP members 2 1,274 47,169 3. For present active members a. Value of expected future benefit payments 630,557 585,575 b. Value of future normal costs (146,625) (148,341) C. Active member accrued liability: (a) - (b) 483,932 437,234 4. Total accrued liability 651,978 651,207 B. Present Assets (Funding Value) - 645,386 C. Net Unfunded Accrued Liability: (A.4) - (B) $ 651,978 $ 5,821 D. Funding Ratio: (B) / (A.4) 0.0% 99.1% GRS B -1 Marana Council Study Session 03/24/2015 Page 49 of 92 SECTION C FUND ASSETS Marana Council Study Session 03/24/2015 Page 50 of 92 Marana Police Dept. DEVELOPMENT OF PENSION FUNDING VALUE OF ASSETS (7 -YEAR SMOOTHING Year Ended June 30: A. Funding Value Beginning of Year (Including Future Benefit Increases) B. Market Value End of Year C. Market Value Beginning of Year D. Non Investment Net Cash Flow E. Investment Income El. Total: B -C -D E2. Amount for Immediate Recognition: (8.00 %) E3. Amount for Phased -in Recognition: E1 -E2 F. Phased -in Recognition of Investment Income F 1. Current Year: E3 / 7 F2. First Prior Year F3. Second Prior Year F4. Third Prior Year F5. Fourth Prior Year F6. Fifth Prior Year F7. Sixth Prior Year F8. Funding Value Corridor Adjustment F9. Total Recognized Investment Gain G. Funding Value End of Year GI. Preliminary Funding Value End of Year: (A +D +E2 +F 1:F7) G2. Upper Corridor: (120% x B) G3. Lower Corridor: (80% x B) G4. End of Year: (G1 subject to max of G2 and min of G3) H Difference Between Market Value & Funding Value: (B -G4) I. Market Rate of Return J. Recognized Rate of Return K. Ratio of Funding Value to Market Value L. Market Value of Assets for Division M. Funding Value of Assets for Division 2014 2015 2016 2017 2018 2019 2020 $ 5, 905, 509,127 5,935,524,128 5,306,086,372 (65, 772, 608) 695,210,364 461, 000, 892 234,209,472 33,458,496 9,542,555 $ 33,458,496 (72,234,304) 9,542,555 $ 33 40,557,028 (72,234,304) 9,542,555 9,473,791 40,557,028 (72,234,304) (183,695,537) 9,473,791 40 (118,855,348) (183,605,170) 9,473,791 $ 33,458,496 9,542,555 $ 33,458,496 (72,234 9,542,555 $ 33 40,557,031 (72,234,303) 9,542,556 $ 33,458,496 (281,753,319) (162,807,604) 20,797,566 6, 018, 984, 092 7,122,628,954 4 6, 018, 984, 092 (83,459,964) 13.2% 3.1% 101.4% 14,231,110 14,431,215 79,347,640 58 11,323,778 (29,233,252) 43,001,052 33,458,496 47,226,296 76,459,548 33 0 The funding value of assets recognizes assumed investment return (line E2) fully each year. Differences between actual and assumed investment return (line E3) are phased -in over a closed 7 -year period. During periods when investment performance exceeds the assumed rate, funding value of assets will tend to be less than market value. During periods when investment performance is less than the assumed rate, funding value of assets will tend to be greater than market value. The funding value of assets is unbiased with respect to market value. At any time it may be either greater or less than market value. If actual and assumed rates of investment return are exactly equal for 7 consecutive years, the funding value will become equal to market value. GRS C -1 Marana Council Study Session 03/24/2015 Page 51 of 92 Marana Police Dept. DEVELOPMENT OF HEALTH FUNDING VALUE OF ASSETS (7 -YEAR SMOOTHING Year Ended June 30: 2014 2015 2016 2017 2018 2019 2020 A. Funding Value Beginning of Year (Including Future Benefit Increases) B. Market Value End of Year C. Market Value Beginning of Year D. Non Investment Net Cash Flow E. Investment Income El. Total: B -C -D E2. Amount for Immediate Recognition: (8.00 %) E3. Amount for Phased -in Recognition: E1 -E2 F. Phased -in Recognition of Investment Income F 1. Current Year: E3 / 7 F2. First Prior Year F3. Second Prior Year F4. Third Prior Year F5. Fourth Prior Year F6. Fifth Prior Year F7. Sixth Prior Year F8. Funding Value Corridor Adjustment F9. Total Recognized Investment Gain G. Funding Value End of Year $ 279, 564, 484 290, 897, 3 09 251,188,046 5,956,011 33,753,252 22,179,585 11, 573, 667 1,653,381 451,741 $ 1,653,381 (3,419,544) 451,741 $ 1,653,381 019,954 (3,419,544) 451,741 $ 1,653,381 448,486 1,919,954 (3,419,544) 451,741 $ 1,653,381 (8, 696, 075) 448 L919,954 (3, 419, 544) 451,741 (5,626,565) (8,691,797) 448,486 019,954 (3,419,544) $ 1,653,381 451,740 $1,653,381 (13,268,622) (7,637,779) 1,054,018 605,532 (1,314,422) 2,105,121 1,653,381 GI. Preliminary Funding Value End of Year: (A +D +E2 +F 1:F 7) 294, 431, 45 8 G2. Upper Corridor: (120% x B) 349, 076, 771 G3. Lower Corridor: (80% x B) 232, 717, 847 G4. End of Year: (G1 subject to max of G2 and min of G3) 294,431,458 K Difference Between Market Value & Funding Value: (B -G4) (3,534,149) 4,103,630 3,049,612 2,44400 3,758,502 1,653,381 0 1. Market Rate of Return 13.3% J. Recognized Rate of Return 3.2% K. Ratio of Funding Value to Market Value 101.2% L. Market Value of Assets for Division 637,639 M. Funding Value of Assets for Division 645,386 The funding value of assets recognizes assumed investment return (line E2) fully each year. Differences between actual and assumed investment return (line E3) are phased -in over a closed 7 -year period. During periods when investment performance exceeds the assumed rate, funding value of assets will tend to be less than market value. During periods when investment performance is less than the assumed rate, funding value of assets will tend to be greater than market value. The funding value of assets is unbiased with respect to market value. At any time it may be either greater or less than market value. If actual and assumed rates of investment return are exactly equal for 7 consecutive years, the funding value will become equal to market value. GRS C -2 Marana Council Study Session 03/24/2015 Page 52 of 92 SECTION D CENSUS DATA Marana Council Study Session 03/24/2015 Page 53 of 92 Marana Police Dept. JUNE 30, 2014 VALUATION DATA SUMMARY For purposes of the June 30, 2014 valuation, information on covered persons was furnished by the Board of Trustees. These people may be briefly described as follows. GRS ° -' Marana Council Study Session 03/24/2015 Page 54 of 92 Averages Annual Pay or No. Age Service Retirement Allowance Actives 73 39.0 9.1 $63 Retirees & Beneficiaries 21 40 DROP 3 39 Inactive Vested 15 112 GRS ° -' Marana Council Study Session 03/24/2015 Page 54 of 92 Marana Police Dept. ACTIVE MEMBERS Members in Active Service as of June 30, 2014 by Years of Service GRS ° - 2 Marana Council Study Session 03/24/2015 Page 55 of 92 Years of Service Total Total Ave rage 0 -4 5 -9 10 -14 15 -19 20 -24 25 -29 30 &Up Age Count Pay Pay Under 25 1 1 $ 49,452 $ 49,452 25-29 5 6 11 569 51,753 30-34 6 11 17 100 58,838 35-39 1 2 5 8 534 66,751 40-44 1 5 6 1 13 885 68 45-49 1 2 7 5 2 17 1,191,367 7000 50-54 1 1 70 70 55-59 1 2 3 225 75,197 60-64 2 2 112 56 65 and over - 0 0 Total 15 27 20 7 3 1 - 73 $ 4,638,418 $ 63,540 GRS ° - 2 Marana Council Study Session 03/24/2015 Page 55 of 92 Marana Police Dept. TERMINATED VESTED MEMBERS GRS D -3 Marana Council Study Session 03/24/2015 Page 56 of 92 Years of Service Total 0 -4 5 -9 10 -14 15 -19 20 &Up Age Count Under 30 1 1 30-39 7 3 10 40-44 2 2 45-49 2 2 50-54 0 55-59 0 60-69 0 70 and over 0 Total 12 3 0 0 0 15 GRS D -3 Marana Council Study Session 03/24/2015 Page 56 of 92 Marana Police Dept. RETIREES AND BENEFICIARIES Pe ns io n B e ing Paid Males Females Total Retired Members Service Pensions Annual $538 Annual Disability Pensions Annual Attained Ages No. Benefits No. Benefits No. Benefits Under 25 0 $ 0 0 $ 0 0 $ 0 25 -29 0 0 0 0 0 0 30 -34 0 0 0 0 0 0 35 -39 2 64 1 31,305 3 96 40 -44 3 106 0 0 3 106 45 -49 0 0 0 0 0 0 50 -54 0 0 1 31,631 1 31 55 -59 3 172 2 56,192 5 228 60 -64 4 210 2 75,821 6 286 65 -69 1 38 1 28,106 2 66 70 -74 1 40 0 0 1 40 75 -79 0 0 0 0 0 0 80 -84 0 0 0 0 0 0 85 -89 0 0 0 0 0 0 90 -94 0 0 0 0 0 0 95 -99 0 0 0 0 0 0 100 and Over 0 0 0 0 0 0 I F - Totals 14 $ 632,570 7 $ 223,055 21 $ 855,625 Pe ns io n B e ing Paid Number Annual Pensions Average Pensions Retired Members Service Pensions 11 $538 $48 Disability Pensions 8 254 31 Totals 19 792 41 Survivors of Members Spouses 2 63 31 Children with Guardians 0 0 0 Total 2 63 31 Total Pension being Paid 21 $855 $40 Average Average Average Age Age Service at Retire me nt Normal retired members 57.2 23.4 53.2 Disability retired members 51.5 6.7 44.2 Spouse beneficiaries 63.0 5.9 45.4 GRS D -4 Marana Council Study Session 03/24/2015 Page 57 of 92 Marana Police Dept. DROP MEMBERS GRS D - 5 Marana Council Study Session 03/24/2015 Page 58 of 92 Males Females Total Annual Annual Annual Attained Ages No. Benefits No. Benefits No. Benefits Under 45 0 $ 0 0 $ 0 0 $ 0 45 -49 1 36 1 37,341 2 73 50 -54 0 0 0 0 0 0 55 -59 1 45 0 0 1 45 60 -64 0 0 0 0 0 0 65 and Over 0 0 0 0 0 0 Totals 2 $81,060 1 $37 3 $118,401 GRS D - 5 Marana Council Study Session 03/24/2015 Page 58 of 92 SECTION E METHODS AND ASSUMPTIONS Marana Council Study Session 03/24/2015 Page 59 of 92 Marana Police Dept. VALUATION METHODS Actuarial Cost Method - Normal cost and the allocation of benefit values between service rendered before and after the valuation date were determined using an individual entry -age actuarial cost method having the following characteristics: (i) the annual normal costs for each individual active member, payable from the date of hire to the date of retirement, are sufficient to accumulate to the value of the member's benefits. (ii) each annual normal cost is a constant percentage of the member's year -by -year projected covered pay. The entry -age actuarial cost method allocates the actuarial present value of each member's projected benefits on a level basis over the member's compensation between the entry age of the member and the assumed exit ages. Actuarial Accrued Liability - The actuarial accrued liability is the portion of actuarial present value allocated to service rendered prior to the valuation date, including experience gains and losses. The actuarial accrued liability was computed using the assumptions summarized in this report. Actuarial Value of System Assets - The actuarial value of assets recognizes assumed investment income fully each year. Differences between actual and assumed investment income are phased in over a closed seven year period subject to a 20% corridor. During periods when investment performance exceeds the assumed rate, actuarial value of assets will tend to be less than market value. During periods when investment performance is less than the assumed rate, the actuarial value of assets will tend to be greater than market value. Financing of Unfunded Actuarial Accrued Liabilities - The actuarial value of assets were subtracted from the computed actuarial accrued liability. Any unfunded amount would be amortized as level percent of payroll over a closed period of 22 years. If the actuarial value of assets exceeded the actuarial accrued liability, the excess was amortized over an open period of 20 years and applied as a credit to reduce the normal cost which otherwise would be payable. Active member payroll was assumed to increase 4.0% annually for the purpose of computing the amortization payment (credit) as a level percent of payroll. GRS E -1 Marana Council Study Session 03/24/2015 Page 60 of 92 Marana Police Dept. VALUATION ASSUMPTIONS Beginning with the June 30, 2007 valuation and with each subsequent valuation, if the actuarial value of assets exceeds the actuarial accrued liabilities, one half of this excess in each year is allocated to a Stabilization Reserve. The Stabilization Reserve is excluded from the calculation of the employer contribution rates. The Stabilization Reserve continues to accumulate as long as the plan is over- funded. Once the plan becomes under - funded, the Stabilization Reserve will be used to dampen increases in the employer contribution rates. The rate of investment return was 7.85% a year, compounded annually net of investment and administrative expenses. The assumed real return is the rate of return in excess of wage growth. Considering other assumptions used in the valuation, the 7.85% nominal rate translates to a net real return over wage growth of 3.85% a year. The rates of pay increase used for individual members are shown below. This assumption is used to project a member's current pay to the pay upon which System benefits will be based. Salary Increase Assumptions For An Individual Member Merit & Seniority Increase Next Year Police Police Fire Fire Base Police Police Fire Fire Sample Ages Large Small Large Small (Economy) Large Small Large Small 20 4.00% 4.00% 4.00% 4.00% 4.00% 8.00% 8.00% 8.00% 8.00% 25 3.70% 3.16% 3.70% 3.70% 4.00% 7.70% 7.16% 7.70% 7.70% 30 2.60% 2.12% 2.90% 2.66% 4.00% 6.60% 6.12% 6.90% 6.66% 35 1.22% 1.17% 1.54% 1.32% 4.00% 5.22% 5.17% 5.54% 5.32% 40 0.52% 0.36% 0.48% 0.41% 4.00% 4.52% 4.36% 4.48% 4.41% 45 0.28% 0.10% 0.14% 0.12% 4.00% 4.28% 4.10% 4.14% 4.12% 50 0.14% 0.07% 0.04% 0.07% 4.00% 4.14% 4.07% 4.04% 4.07% 55 0.04% 0.02% 0.00% 0.02% 4.00% 4.04% 4.02% 4.00% 4.02% 60 0.00% 0.00% 0.00% 0.00% 4.00% 4.00% 4.00% 4.00% 4.00% 65 0.00% 0.00% 0.00% 0.00% 4.00% 4.00% 4.00% 4.00% 4.00% Ref 383 384 385 386 4.00% Active Member Payroll is assumed to grow at 4.0% per year. Although no specific price inflation assumption is required to perform this valuation, since no benefits are linked to prices, a price inflation assumption on the order of 3.0% to 4.0% would be consistent with the other economic assumptions. GRS E -2 Marana Council Study Session 03/24/2015 Page 61 of 92 Marana Police Dept. VALUATION ASSUMPTIONS The healthy mortality table used to evaluate death after retirement in this valuation of the System was the RP 2000 Mortality table projected to 2015 using projection scale AA (adjusted by 105% for males and females). This assumption was first used for the June 30, 2012 valuation of the System and includes margin for future improvements in mortality. Sample rates of mortality and years of life expectancy are shown below: Sample Probability of Future Life Attained Dying Next Year Expectancy (years) Men Women Men Women Ages 50 0.17% 0.14% 31.88 33.93 55 0.29 0.25 27.19 29.20 60 0.56 0.49 22.67 24.66 65 1.08 0.95 18.43 20.39 70 1.86 1.63 14.56 16.49 75 3.22 2.62 11.04 12.95 80 5.81 4.34 8.00 9.80 Ref. 397 x 1.05 398 x 1.05 0 year set forward 0 year set forward This assumption is used to measure the probabilities of each benefit payment being made after retirement. The disabled mortality table used to evaluate death after retirement in this valuation of the System was the RP 2000 Mortality table projected to 2015 using projection scale AA set forward 10 years for both males and females. This assumption was first used for the June 30, 2012 valuation of the System. Sample rates of mortality and years of life expectancy are shown below: Sample Probability of Future Life Attained Dying Next Year Expectancy (years) Men Women 1 Men Women Ages 50 0.53% 0.47% 23.05 25.08 55 1.03 0.90 18.79 20.80 60 1.77 1.55 14.89 16.86 65 3.06 2.49 11.34 13.29 70 5.54 4.13 8.25 10.09 75 9.97 7.08 5.81 7.35 80 17.27 12.59 4.02 5.30 Ref: 397 x 1.00 398 x 1.00 10 year set forward 10 year set forward GRS E -3 Marana Council Study Session 03/24/2015 Page 62 of 92 Marana Police Dept. VALUATION ASSUMPTIONS For actives, the sample rates of mortality for death -in- service are shown below, and were first used for the June 30, 2012 valuation of the System. Sample Probability of Attained Dying Next Year Men Women Ages 50 0.10% 0.08% 55 0.16 0.14 60 0.32 0.28 65 0.62 0.54 Ref: 397 x 0.60 398 x 0.60 65 0 year set back 1 0 year set forward The rates of regular retirement used to measure the probability of eligible members retiring during the next year are shown below. This assumption was first used for the June 30, 2012 valuation of the System. Retirement/DROP Rates: Age - related rates for employees who were hired before January 1, 2012 are shown below: Age at Rates Police Large Police Small Fire Large Fire Small Retirement 62 75% 75% 75% 75% 63 60% 60% 60% 60% 64 60% 60% 60% 60% 65 60% 60% 60% 60% 66 60% 60% 60% 60% 67 60% 60% 60% 60% 68 60% 60% 60% 60% 69 60% 60% 60% 60% 70 100% 100% 100% 100% Ref. 2145 2145 2145 2145 These retirement rates are applicable to employees attaining age 62 before attaining 20 years of service. GRS E -4 Marana Council Study Session 03/24/2015 Page 63 of 92 Marana Police Dept. VALUATION ASSUMPTIONS Service - related rates for employees who were hired before January 1, 2012 are shown below: Service at Rates Police Large Police Small Fire Large Fire Small Retirement 20 25% 37% 14% 20% 21 17% 33% 12% 20% 22 17% 20% 7% 10% 23 10% 13% 7% 10% 24 10% 10% 7% 8% 25 40% 35% 27% 25% 26 40% 35% 30% 25% 27 35% 30% 25% 25% 28 32% 30% 37% 25% 29 32% 30% 37% 25% 30 38% 30% 37% 35% 31 42% 30% 40% 35% 32 75% 75% 50% 35% 33 75% 75% 50% 35% 34 100% 100% 100% 100% Ref. 2146 2147 2148 2149 These retirement rates are applicable to employees attaining 20 years of service before attaining age 62. Age - related rates for employees who were hired after January 1, 2012 are shown below: Age at Rates Police Large Police Small Fire Large Fire Small Retirement 53 10% 15% 10% 10% 54 10% 10% 10% 10% 55 45% 40% 30% 20% 56 45% 40% 45% 30% 57 45% 30% 30% 30% 58 45% 30% 45% 30% 59 45% 30% 45% 30% 60 50% 30% 45% 45% 61 50% 30% 50% 45% 62 80% 65% 50% 45% 63 80% 65% 50% 45% 64 100% 100% 100% 100% Ref. 1737 1738 1739 1740 GRS E -5 Marana Council Study Session 03/24/2015 Page 64 of 92 Marana Police Dept. VALUATION ASSUMPTIONS Rates of separation from active membership used in the valuation are shown below (rates do not apply to members eligible to retire and do not include separation on account of death or disability). This assumption measures the probabilities of members remaining in employment. This assumption was first used for the June 30, 2012 valuation of the System. Sample Service % of Active Members Separating Within Next Year Police Large Police Small Fire Large Fire Small Ages Index All 1 16.00% 15.00% 8.50% 7.50% 0.02% 2 7.00% 10.00% 2.50% 6.00% 0.03% 3 4.00% 9.00% 1.00% 5.00% 40 4 3.00% 7.00% 1.00% 5.00% 0.51% 5 2.50% 6.00% 1.00% 5.00% 1.60% 10 2.00% 5.30% 1.00% 3.00% 0.93% 15 0.60% 1.80% 0.10% 1.00% 591 20 0.50% 1.80% 0.10% 1.00% Ref. 757 603 758 605 Rates of disability among active members used in the valuation are shown below, and were first used for the June 30, 2012 valuation of the System. Sample % of Active Members Becoming Disabled Within Next Year Police Large Police Small Fire Large Fire Small Ages 20 0.08% 0.12% 0.02% 0.03% 25 0.08% 0.12% 0.02% 0.03% 30 0.17% 0.23% 0.04% 0.03% 35 0.22% 0.28% 0.09% 0.07% 40 0.36% 0.46% 0.16% 0.16% 45 0.51% 0.63% 0.16% 0.44% 50 0.78% 1.60% 0.40% 0.60% 55 1.02% 1.60% 0.93% 1.04% Ref 588 589 590 591 80% 80% 80% 80% The Police Small group assumptions were used for the Marana Police Dept. valuation. GRS E -6 Marana Council Study Session 03/24/2015 Page 65 of 92 Marana Police Dept. SUMMARY OF ASSUMPTIONS USED .TUNE 30, 2014 MISCELLANEOUS AND TECHNICAL ASSUMPTIONS Marriage Assumption: 85% of males and females are assumed to be married for purposes of death -in- service benefits. Male spouses are assumed to be three years older than female spouses for active member valuation purposes. Pay Increase Timing: Six months after the valuation date. This means that the pays received are assumed to be annual rates of pay on the valuation date as opposed to W -2 type earnings for the prior 12 months. Decrement Timing: Decrements of all types are assumed to occur mid -year. Eligibility Testing: Eligibility for benefits is determined based upon the age nearest birthday and service nearest whole year on the date the decrement is assumed to occur. Decrement Relativity: Decrement rates are used directly from the experience study, without adjustment for multiple decrement table effects. Decrement Operation: Disability and turnover decrements do not operate during retirement eligibility. Service Credit Accruals: It is assumed that members accrue one year of service credit per year. Incidence of Contributions: Contributions are assumed to be received continuously throughout the year based upon the computed percent of payroll shown in this report, and the actual payroll payable at the time contributions are made. Normal Form of Benefit: A straight life payment is the assumed normal form of benefit for members who are not married, and the 80% Joint and Survivor form of payment with no reduction, for married members. 85% of members are assumed to be married at time of retirement. Benefit Service: Exact fractional service is used to determine the amount of benefit payable. Health Care Utilization: 75% of future retirees are expected to utilize retiree health care. 85% of those are assumed to be married. Assumed Future Permanent Members Retired on or before July 1, 2011: 2% compounded on Benefit Increases (PBI): average. Members Retired on or after August 1, 2011: 0.5% compounded on average. Since all current retirees receive the same dollar increase amount, approximation techniques were used to develop the assumed PBI for each member. GRS E -7 Marana Council Study Session 03/24/2015 Page 66 of 92 SECTION F PLAN PROVISIONS Marana Council Study Session 03/24/2015 Page 67 of 92 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED Membership: Persons who are employed in an eligible group, prior to attaining age 65 years, for at least 40 hours a week for more than six months per year. Average Monthly Compensation: For members hired before January 1, 2012: One - thirty -sixth of total compensation paid to member during the three years, out of the last 20 years of credited service, in which the amount paid was highest. Compensation is the amount including base salary, overtime pay, shift differential pay and holiday pay, paid to an employee on a regular payroll basis and longevity pay paid at least every six months for which contributions are made to the System. For members hired on or after January 1, 2012: One - sixtieth of total compensation paid to member during the five years, out of the last 20 years of credited service, in which the amount paid was highest. Compensation is the amount including base salary, overtime pay, shift differential pay and holiday pay, paid to an employee on a regular payroll basis and longevity pay paid at least every six months for which contributions are made to the System. Normal Retirement: For members hired before January 1, 2012: First day of month following completion of 20 years of service or following 62 birthday and completion of 15 years of service. The amount of monthly normal pension is based on credited service and average monthly compensation as follows: • For retirement with 25 or more years of credited service, 50% of average monthly compensation for the first 20 years of credited service, plus 2 -1/2% of average monthly compensation for each year of credited service above 20 years. • For retirement with 20 years of credited service but less than 25 years of credited service, 50% of average monthly compensation for the first 20 years of credited service, plus 2% of average monthly compensation for each year of credited service between 20 and 25 years. • For retirement with less than 20 years of credited service, the percent of average monthly compensation is reduced at a rate of 4% for each year less than 20 years of credited service. The maximum amount payable as a normal retirement pension is 80% of the average monthly compensation. For members hired on or after January 1, 2012: First day of month following the attainment of age 52.5 and completion of 25 years of service. G 'Q S S 9� - arana Council Study Session 03/24/2015 Page 68 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED The amount of monthly normal pension is based on credited service and average monthly compensation as follows: • For retirement with 25 years of credited service, 62.5% of average monthly compensation. • For retirement with less than 25 years of credited service, the monthly benefit is reduced at a rate of 4% for each year less than 25 years of credited service. • For retirement with more than 25 years of credited service, the monthly benefit is increased by 2.5% of the average monthly compensation multiplied by the numbers of credited years greater than 25 years. The maximum amount payable as a normal retirement pension is 80% of the average monthly compensation. Vested Termination (deferred retirement): Termination of covered position employment with 10 or more years of credited service. Pension is calculated based on twice the member's accumulated contributions with payments commencing at age 62. Benefit is forfeited if accumulated contributions are refunded. The following schedule shows additional money which would be payable to members who receive a refund of their accumulated member contributions. Years of Credited Service Additional Monies (% of Contributions) 0 -4 0% 5 -6 25 -40 7 -8 55 -70 9 -10 85 -100 For members hired on or after January 1, 2012 that cease to hold office for any reason other than death or retirement, member can withdraw their accumulated contributions less any benefit payments already received or any amount the member owes the plan (no employer match of refund contributions) with interest at rate set by Board. Ordinary Disability Retirement (not duty - related): Physical condition which totally and permanently prevents performance of a reasonable range of duties or a mental condition which totally and permanently prevents any substantial gainful employment. The amount of pension is a percentage of normal pension on employee's credited service (maximum of 20 years divided by 20). Accidental Disability Retirement (duty - related): Total and presumably permanent disability, incurred in performance of duty, preventing performance of a reasonable range of duties within the employee's job classification. No credited service requirement. Pension is computed in the same manner as normal pension based on credited service and average monthly compensation at time of termination of employment. Pension is 50% of average monthly compensation, or normal pension amount, whichever is greater. GRS F -2 Marana Council Study Session 03/24/2015 Page 69 of 92 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED Temporary Disability: Termination of employment prior to normal retirement eligibility by reason of temporary disability. Pension is 1/12 of 50% of compensation during the year preceding the date disability was incurred. Payments terminate after 12 months of prior recovery. Catastrophic Disability: Pension is 90% of average monthly compensation. After 60 months, the pension is the greater of 62.5% of average monthly compensation or the member's accrued normal pension. Survivor Pension: Death while a member is employed by an employer, or death after retirement. No credited service requirement. Spouse Pension: 80% of pension deceased active member would have been paid for accidental disability retirement or, in the case of retired member, 80% of the retired member's pension. Requires two years of marriage *. Terminates upon death. For member killed in line of duty, 100% of average compensation, reduced by child's pension. * If retired. Child's Pension: 20% of the pension each month based on the calculation for an accidental disability retirement. Payable to a dependent child under age 18 or until age 23 if a full -time student. Guardian's Pension: Same amount as spouse's pension. Payable only during periods no spouse is being paid and there is at least one child under age 18 or until age 23 if a full time student. 80% of the member's pension and the child's pension will be paid to the guardian. Other Termination of Employment: Member is paid his /her accumulated contributions. Permanent Benefit Increases: For members retired on or before July 1, 2011: Effective July 1 of each year, each retired member or survivor of a retired member may be entitled to a Permanent Benefit Increase (PBI) in base benefit. The maximum amount of the increase is four percent (4 %) of the average normal PSPRS benefit being received on the preceding June 30 and is contingent upon sufficient excess investment earnings for the fund. To be eligible for the increase the member or survivor must be age 55 or older on July 1 of the current year and began receiving benefits on or before July 31 of the previous year. A member or survivor is also eligible if he began receiving benefits on or before July 31 of the two previous years regardless of age. A PBI reserve is maintained and used to pay for the post - retirement adjustment. The investment return on the PBI reserve is the same as the return on the market value of assets (whether the return is positive or negative). Additional amounts are added to the PBI reserve in years when the investment return on the market value of assets exceeds 9.0 %. Each year the present value of that year's post - retirement adjustment is subtracted from the PBI reserve. Apost - retirement adjustment is paid as long as there is a positive balance in the PBI reserve. GRS F -3 Marana Council Study Session 03/24/2015 Page 70 of 92 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED For members retired on or after August 1, 2011: A PBI is only paid in a year when the annual return on the market value of assets of the prior fiscal year exceeds 10.5% and the plan is at least 60% funded. 100% of the excess earnings is used to determine whether a PBI can be paid and the size of the PBI for that year. No PBI reserves will accumulate and the present value of that year's PBI for eligible retirees cannot exceed 100% of the earnings in excess of 10.5 %. If the excess earnings is high enough to exceed the present value of that year's PBI, the excess stays in the fund. To be eligible for an increase the retiree or the survivor must be: • In the case of a retired member who became a member of the plan before January 1, 2012, the retired member or survivor was receiving benefits on or before July 31 of the two previous years; • In the case of a retired member who became a member of the plan before January 1, 2012, the retired member or survivor was 55 or older on July 1 of the current year and was receiving benefits on or before July 31 of the previous year; • In the case of a retired member who became a member of the plan on or after January 1, 2012, the retired member or survivor was at least 55 or older on July 1 and receiving benefits; • In the case of a retired member who became a member of the plan on or after January 1, 2012, if under 55 on July 1, was receiving accidental disability benefits for the preceding 2 years; or • In the case of a member who became a member of the plan on or after January 1, 2012, if the survivor is under 55 on July 1, is the survivor of the member who was killed in the line of duty, and has been receiving a survivor benefits for the preceding 2 years. The amount of the PBI to be paid is determined as follows: • Funded ratio is 60 -64 %, PBI is 2% • Funded ratio is 65 -69 %, PBI is 2.5% Funded ratio is 70 -74 %, PBI is 3% Funded ratio is 75 -79 %, PBI is 3.5% Funded ratio is 80% or more, PBI is 4% Post - Retirement Health Insurance Subsidy: Payable on behalf of retired members and survivors who elect coverage provided by the state or participating employer. The monthly amounts cannot exceed: Member Only With Dependents All Not All Not Medicare Medicare Medicare Medicare One With Eligible Eligible Eligible Eligible Medicare $150 $100 $260 $170 $215 GRS F -4 Marana Council Study Session 03/24/2015 Page 71 of 92 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED Deferred Retirement Option Plan (DROP): A member hired before January 1, 2012 with 20 or more years of credited service under the System may enter into the DROP program with his employer. Under the DROP program, the member must voluntarily and irrevocably elect to enter into the program with his employer for a period of up to 60 months. During the DROP period, the member remains in the employ of the employer as a full -time paid firefighter or full -time paid certified Peace officer but no member or employer contributions are made to the System, therefore no additional years of credited service are accrued on the member's behalf. The member's monthly pension is calculated based upon the years of credited service and average monthly compensation at the beginning of the DROP period. This monthly pension amount is credited to a DROP participation account with interest credited monthly to the account. The interest rate credited to the DROP account is 8.25% for the fiscal year beginning July 1, 2010, 8.0% for the fiscal year beginning July 1, 2011 and 7.85% for the fiscal years beginning July 1, 2012, July 1, 2013 and July 1, 2014. At the end of the DROP period or prior to that time if the member terminates employment, the monies in the DROP participation account will be either paid to the member in a lump -sum amount or paid in a lump -sum distribution to an eligible retirement plan or individual retirement account. The member will then begin receiving the monthly pension amount directly from the System in the same amount as was being credited to the DROP participation account. For members with less than 20 years of credited service on January 1, 2012 the monthly pension amount is credited to a DROP participation account with interest calculated as the average return on the actuarial value of assets, with a minimum of 2% and maximum equal to the actuarial assumed rate. The interest credited to the DROP account is 4.40% for the fiscal year beginning July 1, 2012, 3.20% for the fiscal year that starts July 1, 2013 and 3.40% for the fiscal year that starts July 1 2014. For members with less than 20 years of credited service on January 1, 2012, during the DROP period, the member remains in the employ of the employer as a full -time paid Firefighter or full -time paid certified Peace Officer and refundable member contributions are made to the System. A member hired on or after January 1, 2012 may NOT enter into the DROP. Reverse DROP: Expired effective July 1, 2010. Employer Contributions: Percent of payroll normal cost plus 30 -year (22 years remaining as of June 30 2014) amortization of unfunded actuarial accrued liability (20 -year amortization for credit). The statutory minimum is 8% of payroll (5% of payroll if the actual employer contribution rate is less than 5% for the 2006 /2007 fiscal year). Employer will contribute to the system when members return to work. GRS F -5 Marana Council Study Session 03/24/2015 Page 72 of 92 Marana Police Dept. SUMMARY OF PLAN PROVISIONS VALUED AND /OR CONSIDERED Member Contributions: Member contribution rates are shown in the schedule below. Additional member contributions DO NOT reduce the employer contribution; this means there is a "maintenance of effort" provision. • FY 2010 -2011 — 7.65% • FY 2011 -2012 — 8.65% • FY 2012 -2013 — 9.55% • FY 2013 -2014— 10.35% • FY 2014 -2015 — 11.05% • FY 2015 -2016 and after: the lesser of 11.65 %; or 33.3% of the sum of the member's contribution rate from the preceding fiscal year plus the aggregate computed employer contribution rate; subject to a minimum employee contribution rate of 7.65% • The result for FY 2015 -2016 is 11.65 %. GRS F -6 Marana Council Study Session 03/24/2015 Page 73 of 92 SECTION G GLOSSARY Marana Council Study Session 03/24/2015 Page 74 of 92 Marana Police Dept. Actuarial Accrued Liability The difference between (i) the actuarial present value of future plan benefits, and (ii) the actuarial present value of future normal cost. Sometimes referred to as "accrued liability" or "past service liability." Accrued Service The service credited under the plan which was rendered before the date of the actuarial valuation. Actuarial Assumptions Estimates of future plan experience with respect to rates of mortality, disability, turnover, retirement, rate or rates of investment income and salary increases. Decrement assumptions (rates of mortality, disability, turnover and retirement) are generally based on past experience, often modified for projected changes in conditions. Economic assumptions (salary increases and investment income) consist of an underlying rate in an inflation -free environment plus a provision for a long -term average rate of inflation. Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar amount of the "actuarial present value of future plan benefits" between the actuarial present value of future normal cost and the actuarial accrued liability. Sometimes referred to as the "actuarial funding method." Actuarial Equivalent A single amount or series of amounts of equal value to another single amount or series of amounts, computed on the basis of the rate(s) of interest and mortality tables used by the plan. Actuarial Present Value The amount of funds presently required to provide a payment or series of payments in the future. It is determined by discounting the future payments at a predetermined rate of interest, taking into account the probability of payment. Amortization Paying off an interest - bearing liability by means of periodic payments of interest and principal, as opposed to paying it off with a lump sum payment. Experience Gain (Loss) A measure of the difference between actual experience and that expected based upon a set of actuarial assumptions during the period between two actuarial valuation dates, in accordance with the actuarial cost method being used. Normal Cost The annual cost assigned, under the actuarial funding method, to current and subsequent plan years. Sometimes referred to as "current service cost." Any payment toward the unfunded actuarial accrued liability is not part of the normal cost. GRS G -1 Marana Council Study Session 03/24/2015 Page 75 of 92 Marana Police Dept. Reserve Account An account used to indicate that funds have been set aside for a specific purpose and is not generally available for other uses. Unfunded Actuarial The difference between the actuarial accrued liability and valuation Accrued Liability assets. Sometimes referred to as "unfunded accrued liability." Valuation Assets The value of current plan assets recognized for valuation purposes. Generally based on market value plus a portion of unrealized appreciation or depreciation. GRS G -2 Marana Council Study Session 03/24/2015 Page 76 of 92 APPENDIX A ACCOUNTING DISCLOSURES This information is presented in draft form for review by the System's auditor. Please let us know if there are any items that the auditor changes so that we may maintain consistency with the System's financial statements. Please note that Employer Reporting Information under GASB Statement No. 27 is being replaced by GASB Statement No. 68. In future years, Employers will receive a separate report for accounting disclosures under GASB Statement No. 68. Marana Council Study Session 03/24/2015 Page 77 of 92 Marana Police Dept. GASB STATEMENT No. 27 SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS (EXCLUDING HEALTH INSURANCE SUBSIDY BEGINNING JUNE 30, 2008) Year Ende d June 30 Actuarial Value of Assets (a) Actuarial Accrued Liability (AAL) Entry Age I (b) Unfunded AAL (UAAL) I (b) -(a) Funded Ratio I (a) /(b) Covered Payroll (c) UAAL as a Percent of Covered Payroll [(b)- (a)] /(c) 2003 $5,555,162 $ 4,577 $ (977,401) 121.4% $ 207,622 0.0% 2004 6,012,970 5,62002 (392,968) 107.0% 2,963,538 0.0% 2005 6,633 7,785,903 1,152,553 85.2 % 3,141,628 36.7% 2006 703,870 9,35305 1,749,995 81.3 % 306 45.0% 2007 8,392,338 12,151,257 3,758,919 69.1 % 4,357,380 86.3 % 2008 9,429,944 11 2,416,049 79.6% 4,82209 50.1 % 2009 10,195,941 12,810,429 2,614,488 79.6% 4,62505 56.5 % 2010 10 13,952,924 3,407,378 75.6% 4,345,965 78.4% 2011 1106,757 15,764,471 4,157,714 73.6% 4,254 97.7% 2012 13,200,211 17,972 4 73.4% 4,512,699 105.8 % 2013 14,437,155 19,932,947 5,495,792 72.4% 4,498,048 122.2% 2014 1 14 23 1 9 1 61.3 % 1 4 1 196.4 Results before 2009 were calculated by the prior actuary. Appendix A -1 GRSuncil Study Session 03/24/2015 Page 78 of 92 Marana Police Dept. GASB STATEMENT No. 27 SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS Fiscal Year Ended June 30 Annual Re quire d C o ntributio n 2003 $ 159 2004 231 2005 258 2006 347 2007 386 2008 483 2009 733 2010 582 2011 681 (est.) 2012 701 (est.) 2013 809 (est.) 2014 896 (est.) 2015 952 (est.) 2016* 1,244 (�t.) * This is the estimated Annual Required Contribution before the phase -in plan. Fiscal Years prior to 2011 provided by the prior actuary. Beginning with the 2011 fiscal year, this schedule shows the estimated annual required contribution (calculated based on the recommended contribution rate and the projected payroll for the fiscal year). Actual amounts reported in the employer's financial statements may be different, due to differences between the projected payroll and the actual payroll during the fiscal year. Appendix A -2 GRS uncil Study Session 03/24/2015 Page 79 of 92 Marana Police Dept. GASB STATEMENT No. 27 SUPPLEMENTARY INFORMATION SUMMARY OF ACTUARIAL METHODS AND ASSUMPTIONS The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Valuation date June 30, 2014 Actuarial cost method Entry Age Normal Amortization method Level percent -of -pay closed Remaining amortization period 22 years for underfunded 20 years for overfunded Asset valuation method 7 -year smoothed market 80 %/120% market Actuarial assumptions: Investment rate of return 7.85% Projected salary increases 4.0%-8.0% Payroll growth 4.0% Permanent Benefit Increases Members Retired on or before July 1, 2011: 2% compounded on average. Members Retired on or after August 1, 2011: 0.5% compounded on average. Since all current retirees receive the same dollar increase amount, approximation techniques were used to develop the assumed PBI for each member. Appendix A -3 GRSuncil Study Session 03/24/2015 Page 80 of 92 Marana Police Dept. GASB STATEMENT No. 45 SUPPLEMENTARY INFORMATION The following information is presented concerning the post- retirement health insurance subsidy. The liabilities and computed contribution for the post- retirement health insurance subsidy were based on the same assumptions and actuarial cost methods as indicated for GASB Statement No. 27. SCHEDULE OF FUNDING PROGRESS 2006 $0 $298,976 $298,976 UAAL as a Actuarial Actuarial Unfunded Annual % of Valuation Value of Accrued AAL Funded Covered Covered Date Assets Liability (AAL) (UAAL) Ratio Payroll Payroll June 30 (a) (b) (b -a) (a/b) (c) ((b -a) /c) 2006 $0 $298,976 $298,976 0.00% $ 306,273 7.69% 2007 0 452,442 452,442 0.00 4,357,380 10.38% 2008 0 39304 39304 0.00 4,822,869 8.16% 2009 0 397,840 397 0.00 4,62505 8.60% 2010 0 459,531 459,531 0.00 4,345,965 10.57% 2011 0 590,843 590,843 0.00 4,254,314 13.89% 2012 0 611,387 611,387 0.00 4,51209 13.55% 2013 0 651,978 651,978 0.00 4,498,048 14.49% 2014 645 651 5 99.11 4 0.13% Appendix A -4 Casuncil Study Session 03/24/2015 Page 81 of 92 Marana Police Dept. ANNUAL REQUIRED CONTRIBUTION Actuarial Valuation Fiscal Year Normal Accrued Date Ended Cost Liability Total Dollar June 30 June 30 (a) (b) (a +b) Amount 2006 2008 0.46% 0.36% 0.82% $39 2007 2009 0.68 0.49 1.17 56 2008 2010 0.55 0.39 0.94 45 2009 2011 0.67 0.42 1.09 56 2010 2012 0.67 0.54 1.21 58 2011 2013 0.51 0.75 1.26 59 2012 2014 0.42 0.72 1.14 56 2013 2015 0.44 0.83 1.27 62 2014 2016 0.43 (0.05) 0.38 19,064 Fiscal Years prior to 2011 were provided by the prior actuary. Health Insurance Subsidy Payment Reported for FY2014: $15,999 Appendix A -5 GRSuncil Study Session 03/24/2015 Page 82 of 92 - r C? RANA -P 11555 W. CIVIC CENTER DRIVE. E. I NA. ARIZ ONA 8 5 6 5 3 To: Mayor and Council From: Keith Brann, Town Engineer Date: March 24, 2015 Strategic Plan Focus Area: Not Applicable Item D6 Subject: Resolution No. 2015 -027: Relating to Public Works; approving and authorizing the Mayor to execute an amendment to an intergovernmental agreement between the Arizona Department of Transportation and the Town of Marana relating to the I -10 / Twin Peaks Traffic Interchange; and superseding and replacing Marana Resolution No. 2014 -090 (Keith Brann) Discussion: The Town formally entered into a joint project agreement (JPA) with the state of Arizona through the Arizona Department of Transportation in 2007 under Marana Resolution 2007 -109 for the design and construction of the Twin Peaks interchange. This JPA laid out the roles and responsibilities of the partners for the project. In general, Marana would design and obtain the environmental clearances for the project while ADOT would bid and administer the construction of the project. The project came to a successful conclusion and is a centerpiece of infrastructure for the Town. In October of 2014, the Town agreed to amend its JPA with ADOT for better defined maintenance roles at the interchange. In general,the Town would maintain anesthetics, landscaping, and ground mounted signs and sidewalks on Twin Peaks. The Town would also assist ADOT with routine maintenance in ADOT's right of way of Twin Peaks Road when our crews were doing adjacent work. The amendment before you tonight keeps the same agreements from October, but contains minor cleanup of stationing limits and a better graphical exhibit of the responsibilities. Financial Impact: Fiscal Year: Marana Council Study Session 03/24/2015 Page 83 of 92 Budgeted Y /N: Amount: $ As discussed during the passage of resolution 2014 -090, the maintenance costs are approximately $5,000 per year Staff Recommendation: Staff recommends adoption of the resolution Suggested Motion: I move to adopt Resolution No. 2015 -027 Attachments: Resolution 2015 -027 IGA amendment IGA amendment map - exhibit 1 Marana Council Study Session 03/24/2015 Page 84 of 92 MARANA RESOLUTION NO. 2015-027 RELATING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE ARIZONA DEPARTMENT OF TRANSPORTATION AND THE TOWN OF MARANA RELATING TO THE I -10 / TWIN PEAKS TRAFFIC INTERCHANGE; AND SUPERSEDING AND REPLACING MARANA RESOLUTION NO. 2014 -090 WHEREAS the Arizona Department of Transportation and the Town of Marana entered into an intergovernmental agreement in 2007, authorized by Marana Resolution No. 2007 -109, to facilitate the construction of the new I -10 Twin Peaks Traffic Interchange; and WHEREAS the Arizona Department of Transportation requests amendment of the 2007 intergovernmental agreement to address ongoing maintenance and landscaping of the new I -10 Twin Peaks Traffic Interchange; and WHEREAS the Mayor and Council adopted Resolution No. 2014 -090 on October 7, 2014, approving this same amendment, but later Arizona Department of Transportation revisions to the intergovernmental agreement make it necessary to supersede and replace Resolution No. 2014 -090 with this resolution; and WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of the Town of Marana to enter into this intergovernmental agreement amendment. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that "Amendment No. One to Intergovernmental Agreement between the State of Arizona and the Town of Marana" (ADOT File No. IGA /JPA 06- 148 -I; ADOT CAR No. 13- 0001543 -I; Amendment No. One: 14- 0004629 -I; AG Contract No. KR07- 0594TRN; ADOT Project H5 83 8 01D/01C) between the Town of Marana and the State of Arizona acting by and through its Department of Transportation, attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved, and the Mayor is hereby authorized to exe- cute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the intergovernmental agreement amendment. IT IS FURTHER RESOLVED that Marana Resolution No. 2014 -090 adopted on Octo- ber 7, 2014, is hereby superseded by and replaced with this resolution. {00041265.DOCX /} Marana Resolution No. 2015 -027 - 1 - 3/20/2015 11:29 AM FJC Marana Council Study Session 03/24/2015 Page 85 of 92 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 24th day of March, 2015. ATTEST: Jocelyn C. Bronson, Town Clerk Mayor Ed Honea APPROVED AS TO FORM: Frank Cassidy, Town Attorney {00041265.DOCX /} Marana Resolution No. 2015 -027 -2- 3/20/2015 11:29 AM FJC Marana Council Study Session 03/24/2015 Page 86 of 92 ADOT File No.: IGA/ JPA 06 -148 -I ADOT CAR No.: 13- 0001543 -I Amendment No. One: 14- 0004629 -I AG Contract No.: KR07- 0594TRN Project: Twin Peaks Linda Vista TI Federal -aid No.: N/A ADOT Project: H5838 01 D 101 C CFDA No.: 20.205 - Highway Planning and Construction Budget Source Item No.: 14506 AMENDMENT NO. ONE TO INTERGOVERNMENTAL AGREEMENT BETWEEN THE STATE OF ARIZONA AND THE TOWN OF MARANA THIS AMENDMENT NO. ONE to INTERGOVERNMENTAL AGREEMENT (the "Amendment No. One "), entered into this date , 2015, pursuant to Arizona Revised Statutes §§ 11 -951 through 11 -954, as amended, between the STATE OF ARIZONA, acting by and through its DEPARTMENT OF TRANSPORTATION (the "State" or "ADOT ") and the TOWN OF MARANA, acting by and through its MAYOR and TOWN COUNCIL (the "Town "). The Town and State are collectively referred to as the "Parties." WHEREAS, the INTERGOVERNMENTAL AGREEMENT, JPA/IGA 06- 148 -I, A.G. Contract No. KR07- 0594TRN, was executed on August 1, 2007, (the "Original Agreement "); WHEREAS, the State is empowered by Arizona Revised Statutes § 28 -401 to enter into this Amendment No. One and has delegated to the undersigned the authority to execute this Amendment No. One on behalf of the State, WHEREAS, the Town is empowered by Arizona Revised Statutes § 09 -240 to enter into this Amendment No. One and has by resolution, a copy of which is attached hereto and made a part hereof, resolved to enter into this Amendment No. One and has authorized the undersigned to execute this Amendment No. One on behalf of the Town; and NOW THEREFORE, in consideration of the mutual agreements expressed herein, the purpose of this Amendment No. One is to define maintenance responsibilities for ADOT and the Town. The Parties desire to amend the Original Agreement, as follows: Marana Council Study Session 03/24/2015 Page 87 of 92 Page 2 II. SCOPE OF WORK Section II. Paragraph 2. j. is revised and replaced, as follows: The Town shall: ADOT File No.: IGA/JPA 06 -148 -I ADOT CAR No. - 13- 0001543 -I Amendment No. One: 14- 0004629 -I j. After construction, be responsible for ownership and maintenance of the portion of the Project outside of ADOT's right -of -way limits; be responsible for maintenance of the portion of the Project inside of ADOT's right -of -way limits, as specified below and per Exhibit 1 ;and waive the requirements of Arizona Revised Statutes § 28 -7209. No outdoor advertising structures shall be placed within the Project limits. (Area depicted on Exhibit 1 outside the above listed areas will be abandoned by Arizona Transportation Board Resolution upon completion of the Project.) i. Perform maintenance of State right -of -way and easements on Twin Peaks Road as described below. Also maintain paint, artwork and graffiti abatement within the Twin Peaks traffic interchange. ii. Perform routine Maintenance of ALL ground- mounted signs on Twin Peaks Road outside of the interchange ramps. The Town will also maintain stop /street sign assemblies at the frontage road intersections. These signs will be replaced on an as needed basis when damaged, vandalized, removed or faded to where reflectivity is below standard. iii. In the event that the Town is performing striping maintenance along Twin Peaks Road, Town shall also perform striping maintenance within the ADOT right of way limits of Twin Peaks Road including crosswalks, stop bars, turn lane legends and lane and shoulder striping. iv. Properly maintain non - structural (not part of any bridge structure) sidewalks in a safe condition. Maintenance will include, but not be limited to, keeping the pathway surface and surrounding area free of debris, undesirable weeds and grasses, trash and litter. The sidewalk surface will be repaired or concrete slabs replaced as necessary to correct trip hazards and any erosion around the sidewalk shall be maintained to the final grade at time of completion of the sidewalk construction. v. Be responsible for the water and electrical utility costs and the backflow testing for the landscape irrigation system. vi. Perform routine maintenance of publicly owned landscaping and irrigation system and to assure permitted landscaping is properly maintained. Maintenance will consist of the following: caring for all plants in accordance with acceptable horticultural practices; keeping rock mulch as a consistent and uniform ground cover; repairing any erosion damage in the landscape area; keeping all areas free of weeds, undesirable grasses and litter; applying insecticide /herbicide sprays and dust palliative to combat diseases and other pests; pruning and replanting vegetation as required; and keeping all landscape features as it was designed and established at the completion of the project. Maintenance of the irrigation system includes all testing, adjusting, repairing, and checking the operation of the system to keep it fully functional as designed. vii. In the event that the Town is performing street sweeping maintenance along Twin Peaks Road, Town shall also perform street sweeping maintenance within the ADOT right of way limits of Twin Peaks Road. viii. Assure all maintenance work is conducted in a manner to minimize traffic congestion and interference with through traffic. All traffic control will meet the requirements of the Arizona Department of Transportation Uniform Traffic Control Manual and the Manual on Uniform Traffic Control Devices, latest edition adopted by the State with their revisions. Marana Council Study Session 03/24/2015 Page 88 of 92 Page 3 Section II. Paragraph 3. f. is revised and replaced as follows: 3. The State shall: ADOT File No.: IGA/JPA 06 -148 -I ADOT CAR No. - 13- 0001543 -I Amendment No. One: 14- 0004629 -I f. After construction, be responsible for ownership and maintenance of all right -of -way inside and outside of access control as depicted on Exhibit 1, conveyed to the State by the Town through Transportation Board Resolution including: Twin Peaks Road from Tiffany Loop Road station 39 +40 left and station 43 +64.76 left to Twin Peaks Road station 108 +90.31 left and station 108 +99.51 right; Interstate 10 from station 4783 +00 to station 4863 +00; eastbound frontage road from station 1565 +21 to station 1647 +01; westbound frontage road from station 1574 +06 to station 1634 +00. Maintenance of non - structural sidewalks, landscaping (including landscaping water and electrical costs to maintain the irrigation), and artwork (fixtures, paint, and graffiti abatement) of said project shall be the responsibility of the Town. III. MISCELLANEOUS PROVISIONS Section III, Paragraph 1. is revised; and Paragraphs 11. and 12. are added, as follows: 1. The terms, conditions and provisions of this Agreement shall remain in full force and effect until completion of said Project and related deposits or reimbursement, except any provisions for maintenance shall be perpetual, unless assumed by another competent entity. It is further understood and agreed that in the event the Town terminates this Agreement, the State shall in no way be obligated to maintain said Project. The Town assumes full responsibility for the design, plans, specifications, reports, and the engineering in connection therewith of any design contractor cost over -runs and design claims. It is understood and agreed that, the Town shall provide maintenance for the sidewalk, landscaping, irrigation, irrigation water and electrical costs for the irrigation on ADOT's right -of -way of said Project. 11. The Parties shall comply with the applicable requirements of Arizona Revised Statutes § 41 -4401. 12. The Parties hereto shall comply with all applicable laws, rules, regulations and ordinances, as may be amended. EXCEPT AS AMENDED herein, ALL OTHER terms and conditions of the Original Agreement remain in full force and effect. Marana Council Study Session 03/24/2015 Page 89 of 92 Page 4 ADOT File No.: IGA/JPA 06 -148 -I ADOT CAR No. - 13- 0001543 -I Amendment No. One: 14- 0004629 -I THIS AMENDMENT NO. ONE shall become effective upon signing and dating of the Determination Letter by the State's Attorney General. IN ACCORDANCE WITH Arizona Revised Statutes § 11 -952 (D) attached hereto and incorporated herein is the written determination of each Party's legal counsel and that the Parties are authorized under the laws of this State to enter into this Amendment No. One and that the Amendment No. One is in proper form. IN WITNESS WHEREOF, the Parties have executed this Amendment No. One the day and year first above written. TOWN OF MARANA By ED HONEA Mayor ATTEST: By JOCELYN BRONSON Town Clerk STATE OF ARIZONA Department of Transportation :1 STEVE BOSCHEN, P.E. ITD Development Director Marana Council Study Session 03/24/2015 Page 90 of 92 ADOT File No.: IGA/JPA 06 -148 -I ADOT CAR No. :13- 0001543 -I Amendment No. One: 14- 0004629 -I ATTORNEY APPROVAL FORM FOR THE TOWN OF MARANA I have reviewed the above referenced Amendment No. One to the Original Agreement between the State of Arizona, acting by and through its DEPARTMENT OF TRANSPORTATION, and the TOWN OF MARANA, an agreement among public agencies which, has been reviewed pursuant to Arizona Revised Statutes §§ 11 -951 through 11 -954 and declare this Amendment No. One to be in proper form and within the powers and authority granted to the Town under the laws of the State of Arizona. No opinion is expressed as to the authority of the State to enter into this Amendment No. One. 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