HomeMy WebLinkAbout10/06/2015 Regular Council Meeting MinutesREGULAR COUNCIL MEETING
MINUTES
11555 W. Civic Center Drive, Marana, Arizona 85653
Council Chambers, October 6, 2015 at or after 7:00 PM
Ed Honea, Mayor
Jon Post, Vice Mayor
David Bowen, Council Member
Patti Comerford, Council Member
IIerb Kai, Council Member
Carol McGorray, Council Member
Roxanne Ziegler, Council Member
REGULAR COUNCIL MEETING
CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 7:05
p.m. Town Clerk Bronson called roll. Vice Mayor Post and Council Member Bowen were
excused. There was a quoru n present.
PLEDGE OF ALLEGIANCE /INVOCATION /MOMENT OF SILENCE. Led by Mayor
Ilonea.
APPROVAL OF AGENDA. Motion to approve by Council Member McGorray, second by
Council Member Ziegler. Passed unanimously 5 -0.
CALL TO THE PUBLIC. David Morales spoke on behalf of the Disabled American Veterans
and asked for support for this organization which provides volunteer services to service men and
women. This chapter is not funded by any parent organization, and the only way they can exist is
through donations. He noted that the DAV Chapter 4 will be at the Cotton Festival, and all
donations are appreciated.
PROCLAMATIONS
MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Council
Members Ziegler, McGorray and Mayor Honea all spoke with high regard for the Grand
October 6, 2015 Meeting Minutes
Opening of the new Tucson Outlet Mall in Marana. Mayor Honea also noted that Ventana
Medical Systems received its Certificate of Occupancy. IIe had an opportunity to tour the
facility and noted that it is state of the art and will provide many job opportunities within our
community.
MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. Mr. Davidson noted that
the Council Executive Report was placed on the dais and is available online. IIe also noted that
due to the extensive data provided, the type is quite small. The report will be revised and re-
distributed with larger font. He also reminded Council, staff and the audience of the annual
Cotton Festival which will be this coming Saturday at the Ileritage River Park from 4 -9 p.m.
This is a great family event. Last, after many months of hard work, the Water Utility department
has a new logo, which he premiered from the dais.
PRESENTATIONS. None.
CONSENT AGENDA. Motion to approve by Council Member Kai, second by Council
Member Ziegler. Passed unanimously 5 -0.
C1 Resolution No, 2015 -104 Relating to Public Works; approving and authorizing the
Mayor to sign a release of deed of trust in connection with a public improvement participation
agreement for the construction of a right turn lane for the Tangerine Ridge development project
as part of the Tangerine Road - -Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive
public works project (Frank Cassidy)
C2 Resol No. 2015 -105 Relating to Development; approving and authorizing the
Mayor or the Town Manager to execute all legal instruments necessary or prudent to document,
authorize, and consent to the assignment and assumption of developer rights, title, interest, and
responsibilities relating to the Saguaro Bloom (formerly Saguaro Springs) project from and by
Grayhawk Development and its related entities to and by D.R. Horton and its related entities; and
ratifying the "Assignment and Assumption of Amended and Restated Agreement for
Construction of Water Facilities and Provision of Water Utility Service for the Saguaro Bloom
Development Project" previously signed by the Town Manager (Frank Cassidy)
C3 Approval of September 15, 2015 Study Session Meeting and Regular Council Meeting
Minutes (Jocelyn C. Bronson)
LIQUOR LICENSES
L1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor
Licenses and Control regarding a special event liquor license application submitted by Claudio
Jesus Martinez on behalf of the American Diabetes Association for Hogtoberfest to be held on
October 31, 2015 (Jocelyn C. Bronson). Ms. Bronson noted that the application was properly
noticed, reviewed and was in compliance with the town's special event liquor license process.
Staff recommended approval. Motion to approve by Council Member McGorray, second by
Council Member Kai. Passed unanimously 5 -0.
October 6, 2015 Meeting Minutes
L2 Relating to Liquor Licenses; recommendation to the Arizona state liquor board regarding
an application to add sampling privileges to the existing liquor license at Wal -Mart Supereenter
45031 located at 8280 N. Cortaro Road, Marana, Arizona 85743 (Jocelyn C. Bronson). Ms.
Bronson noted that the application was properly noticed and reviewed. No protests were
received, and the application is in compliance with the town's process. Staff recommended
approval. Motion to approve by Council Member Ziegler, second by council Member
McGorray. Passed unanimously 5 -0.
L3 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor
Licenses and Control regarding a new Series 410 Beer and Wine Store liquor license application
submitted by Heather Anne Hendon on behalf of Jacksons #813, located at 13960 N. Sandario
Road, Marana, Arizona 85653 (Jocelyn C. Bronson). Ms. Bronson stated that the application
was properly noticed, reviewed and was in compliance with the town's process. No protests
were received. Staff recommended approval. Motion to approve by Council Member Ziegler,
second by Council Member McGorray. Passed unanimously 5 -0.
L4 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor
Licenses and Control regarding an application for a Person Transfer and a Location Transfer of a
Series #9 Liquor Store liquor license submitted by Jason Barclay Morris on behalf of
CVS /Pharmacy 49273 located at 3785 W. Ina Road, Tucson, Arizona 85741 (Jocelyn C.
Bronson). Ms. Bronson reported that the application was properly noticed, reviewed and is in
compliance with the town's process. No protests were received, and the staff recommendation is
for approval. Motion to approve by Council Member Kai, second by Council Member Ziegler.
Passed unanimously 5 -0.
BOARDS, COMMISSIONS AND COMMITTEES
COUNCIL ACTION
Al Resolution No. 2015 -106 Relating to Community Development; approving and
authorizing the Town Manager to execute one or more quit claim deeds in favor of habitat for
Humanity Tucson for Lot 49 of Ilonea Heights subdivision and Lots 1 and 4 and Parcel A of
Sydney Place subdivision to be used for affordable workforce housing (Lisa Shafer). Presented
by Frank Cassidy, who noted that this item carries out prior resolutions. In the past the town
had a fairly robust affordable housing program. One of the projects was the Sydney Place along
the east side of Whitney Lane where we created a subdivision with four parcels where there had
been an existing home. That was lot 4. Lots 1 — 3 are vacant lots with a common area and little
drainage area on the east side. Two of the lots of the Sydney Place subdivision have already
been transferred over to IIabitat for Humanity where they built homes that are now occupied.
This resolution would transfer the existing home and the final vacant lot over to IIabitat for
Humanity along with that common area. There is also a home at the corner of Sandy and Morgan
which is lot 49. That is a house also purchased with the housing funds for non - payment of taxes,
with the purchase intended for affordable housing, and that lot would transfer to Habitat as well.
Motion to approve by Council Member Ziegler, second by Council Member McGorray.
Passed unanimously 5 -0.
October 6, 2015 Meeting Minutes 3
A2 Resolution No. 2015 -107 Relating to Utilities; Authorizing the Town Manager and staff
to take all necessary and appropriate steps for the "Town of Marana to receive from Avra Water
Co -op, Inc. a conveyance of rights and assumption of obligations of Central Arizona Project
Municipal and Industrial Water Service Subcontract; approving a draft form of conveyance
agreement; Lard authorizing the Mayor to sign the conveyance agreement and all necessary
Central Arizona Water Conservation District subcontract documentation at the conclusion of the
approval process. John Kmiec noted that previously he brought to Council information that
the Avra Water Co -op was interested in divesting themselves of their current CAP allocation and
their desire to have it go to the town. This is the next step in the process. Before Council is a
draft agreement as well as a resolution authorizing the Mayor to execute any future contracts
with CAP. This is going to Arizona Department of Water Resources with Avra Valley and
Marana recommending that Avra Water relinquish their CAP credits o4`808 acre feet, and
transfer them to the Town of Marana. That project should start in the month and then through a
series of phases would eventually allow Marana to have the subcontract with CAWCD to add an
additional 808 feet to our current 1528. Motion to approve by Council Member Kai, second by
Council Member McGorrny. Passed tin animo usly 5 -0.
ITEMS FOR DISCUSSION /POSSIBLE ACTION
DI Resolution No. 2015 -108: Relating to Special Events; approving and authorizing the
Mayor to execute an agreement between the Town of Marana and Perimeter Bicycling
Association of America, Inc. regarding financial support for the 2015 and 2016 El Tour de
"Tucson events; and approving the transfer of a total of $1 0,000 in budgeted expenditure authority
from the Economic Development, Tourism, and Parks and Recreation budgets to the General
Governments Outside Agencies line item for purposes of funding the agreement for fiscal year
2016. Presented by Tom Ellis began by noting that this project supports focus areas in the
Strategic Plan. In August, principals with the Perimeter Bicycling Association presented Council
with a unique opportunity to showcase Marana through a partnership with El Tour de Tucson
Bicycling event. The agreement before Council tonight formalizes the participation by the town
with the El 'four event. He gave highlights of the Tour, noting that it is the largest cycling event
in Arizona and the seventh largest in the U. S. and has the second highest economic impact of
any special event in southern Arizona.
The agreement requires financial support from the town of $10,000 in 2015 and 515,000 in 2016.
This allows the town to be a significant partner with Perimeter Bicycling before, during and after
the El Tour events and will help market Marana in major tourism outlets and media promotions.
The Marana logo will be prominently displayed on all banners, t- shirts and advertising. This will
have a huge impact on Marana tourism and at the same time sponsoring a healthful event in an
international fashion. After the 2015 El Tour, Perimeter Bicycle will feature a customized Town
of Marana 25 -mile cycling event with its own application and its own placement and team
awards and perhaps give the town an opportunity to promote a new signature event featuring
Marana's healthy lifestyle and high quality of life. The contributions will come from three
departments: Economic Development, 'Tourism and Parks & Recreation. The 2016 funding
would be part of the 2016 -17 budget cycle. Council Member Ziegler expressed her gratification
over having this opportunity brought to the town. Motion to approve by Council Member
Ziegler, second b Council Member McGorrny. Passed unanimously 5 -0.
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D2 Resolution No. 2015 -109 Relating to Administration; transferring $250,000 in budgeted
expenditure authority from the General Fund contingency line item to the restricted budget line
items within various Town departments in the fiscal year 2014 -2015 budget for unanticipated
costs; reallocating $377,060 in expenditure authority between certain departments in the fiscal
year 2014 -2015 budget due to a reorganization. Erik Montague gave the FY 2015 preliminary,
unaudited results, focusing primarily on the revenues from transaction privilege sales taxes, state
shared revenues and licenses, permits & fees. This accounting is for the period through June
2015. Overall, revenues exceeded projections by 5.1 percent, which is significant growth. He
then provided information from a trending graph to support these Figures. There appears to be
good stability in the new housing market. State shared revenues are the second largest revenue
stream. Although we are within expectations, we exceed budget in all categories in a number of
years, especially with auto lieu, which is vehicle registration tax. Even though it isn't in the
general fund, Mr. Montague included the HURF fund. For audited 2015, we landed at about
122.6% of what we had budgeted. Some of that is due to the fuel prices dropping and additional
consumption and how those distributions occurred. This is the main source used to repair our
roads, so the more dollars we can deploy toward that makes this vital to our community. For
licenses, permits and fees, we exceeded what we had budgeted in nearly all the categories. This
is primarily building safety, engineering and planning. This is a challenge, and a lot of effort is
put into the calculations. For the yearjust ended we budgeted for 600 permits, and we had in
excess of 668 actual permits issued. We are about 10% above projected revenue.
He then provided an overall general fund summary. For the current month, revenues exceeded
expenditures by about $4M which is significant. Keep in mind that we are accumulating cash for
the purpose of making debt service payments and other required transfers such as the splash pad.
For revenues to date, revenues exceeded expenditures for those draws by about $12M. He had
expected to land closer to break even, but the good news is that we will be returning some cash.
These numbers may change after audit, but generally he feels very good about where we are.
Mr. Montague finished with a brief report on general fund balances and growing those resources
to eventually deploy them for appropriate uses. With the potential $1.2M, we'll be just shy of
$25M in fund balance which is significant. Related to this for Council consideration is a
reallocation of $377,060 for a reorganization that occurred after the end of the fiscal year and the
transfer of $250K due to unanticipated budget overruns. One occurred in the police area for
$50K primarily related to vehicle maintenance and some benefit costs for new employees. The
second piece is for $200K from contingency within Community Development related to animal
control and how that contract works under the new contract period. This was mentioned to
Council at an earlier meeting as a possibility. Final results will be available in December and
published on our website for award consideration. Mayor Ilonea congratulated Mr. Montague
on an excellent presentation. Motion to approve by Council Member Ziegler, second by
Council Member Kai. Passed unanimously 5-0.
D3 Relating to Administration; presentation regarding Local Option #A of the Model City
Tax Code. Mr. Montague presented this item, noting that the Model City Tax code was created
several years ago with the intent to provide some level of consistency among the various cities
and towns. The other areas are allowing individual cities to make decisions based on what they
believe to be right for their community. 'That's in addition to the actual tax rate. Since July 1,
2012, the Model Cities "Tax Code is maintained by the Arizona Department of Revenue. Any
October 6, 2015 Meeting Minutes 5
changes to the code will eventually need to be approved by the Councils of the individual cities
and towns and then codified in the official document. Change to the tax code requires that the
Municipal "Tax Code Commission review those changes periodically through the unified audit
committee or through other interested persons through that process. The Commission is a nine -
member board — five by the Governor, two by the Senate and two by the House.
Thee are some changes that can be made that don't require that review. One is the tax rate, and
the other is adopt or repeal local or model options. One of the options we have for model and
local options is to decide what should be taxed. With Local Option #A, it would include new
agricultural machinery equipment to exempt income- producing capital equipment. That would
be limited to new equipment and to those individuals who are in the lino of business of
agricultural, horticultural, viticultural or floricultural crops in the state. So anyone in the
business of growing those crops for commercial production would provide for an exemption for
those sales to those farmers. It would not apply to non - agricultural purposes. It would put the
responsibility on the business owner to obtain and maintain documentation evidencing that they
are properly excluding that from taxation. He then provided a list of the town cities and towns
that have chosen that option. The town became aware of this option and of some cities having
this option and others not, that there may be a business in our community at a competitive
disadvantage. Specifically, with Stotz coming to Marana in October 2014, individuals who have
a choice may be choosing locations based some pricing differential, so there may be a
competitive disadvantage at the local store.
What staff is bringing to Council is information regarding some of the options or choices we
have and addressing the specific concern or issue one of our businesses has in the community.
Tonight's presentation is to get direction and feedback Prom Council on this option. He gave a
possible timeline for an effective date of January 1, 2016. Motion to direct staff to move
forward with Local Option #A of the Model Cities Tax Code that would henefit agricultural
producers within the town by Council Member Kai, second by Council Member Ziegler.
Mayor Honea noted that we had something similar to this many years ago on agricultural
products, and lie supports this as well. We don't want companies in our community losing sales
because they are at a competitive disadvantage. Passed unanimously 5 -0.
D4 Relating to Legislation and Government Actions; discussion and possible action
regarding all pending state, federal, and local legislation/government actions and on recent and
upcoming meetings of the other governmental bodies (Gilbert Davidson). Mayor Honea noted
that there are now four people running for Congressional District I including two new
candidates: Paul Babeu, and Dave Gowan.
Mayor Honea noted that he forgot to mention two noteworthy passages which occurred in the
past few weeks of people who had a big presence in the town. Dan Groseclose, aformer Council
Member and town employee passed last week after a long fight with lung cancer. Charlene
Abbett, Wheeler Abbett's wife, passed last Monday. Charlene was very active in the community
and loved Marana. IIe asked that all keep their families in our thoughts and prayers.
October 6, 2015 Meeting Minutes
EXECUTIVE SESSIONS. Motion to go into executive session at 7:59 p.m. on items E2 and
E3 by Council Member McGorray, second by Council Member Ziegler. Passed unanimously
5 -0. The public meeting reconvened at 8:46 p.m.
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.
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.
E2 Executive session pursuant to A.R.S. § 38- 431.03(A)(7), for discussion and consultation
with the Town's representatives and attorneys to consider the Town's position and instruct its
representatives and attorneys regarding negotiations with the Arizona State Land Department
concerning the current lease and possible future auction of the Tortolita Preserve.
E3 Executive session pursuant to A.R.S. § 38- 431.03(A)(4) in order to consider the Town's
position and instruct the Town's attorneys regarding the Town's position regarding the
anticipated Carranza sewer connection claim for the home located at 8755 North Biscay Place
in Continental Ranch.
Motion by Council Member Kai, second by Council Member McGorray to direct staff to
proceed in a manner consistent with the discussion in executive session on Items E2 and E3.
Passed unanimously 5 -0.
FUTURE AGENDA ITEMS. Council Member Ziegler asked for a resolution supporting
Fisher House, which provides comfort homes for military and Veteran families who come to
support a loved one hospitalized for wounds, injuries, or illnesses at the southern Arizona VA
Hospital. Mayor Honea concurred.
ADJOURNMENT. Motion to adjourn at 8:50 p.m. by Council Member McGorray, second by
Council Member Kai.
CERTIFICATION
I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council
meeting held on October 6, 2015. I further certify that a quorum was present.
o elyn C ronson, Town Clerk
October 6, 2015 Meeting Minutes