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HomeMy WebLinkAbout03/07/2017 Regular Council Meeting Minutes MARANA Apyo ESTABLISHED 1977 MARANA TOWN COUNCIL REGULAR CO'UNCI L MEETING MINUr FES 115 5 5 W. Civic Center Drive, Marana, Arizona 8 5 65 3 Council Chambers, March 7, 2017, at or after 7:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb tai, Council Member ' Carol McGorray, Council Member Roxanne Ziegler, Council Member REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 7:02 p.m. Town Clerk Bronson called roll. All Council Members were present, PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE, Led by Mayor Honea. APPROVAL OF AGENDA. Motion to approve by Council Member Ziegler, second by Council Member Bowen. Passed unanimously. CALL TO THE PUBLIC. Joanne Martinez spoke regarding the inadequate access in and out of the San Lucas development and how it is affecting property values in that area. Barbara Rose spoke on behalf of the Scenic Drive/Pima Farms county-area residents and requested a meeting with Marana's traffic and planning staff to discuss road changes separate from the Lazy K Bar plans. PROCLAMATIONS P I A proclamation recognizing March 10, 2017 as St. Baldrick's "Brave the Shave" Day in Marana (.Jocelyn C. Bronson), Read by Ms. Bronson. Chris Dow from the Foundation accepted the proclamation and said a few words March 7,2017 Regular Council Meeting Minutes MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Council Member Ziegler noted that a new Temple for the Church of Latter Day Saints is being constructed on Sunrise between Orange Grove and Campbell Avenue, MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. Gilbert Davidson introduced Steve Romero, the new Assistant Town Manager. Mr. Romero worked for the town previously in government relations and then took a Job in Washington D.C. with the federal government. This position has been vacant since the recession, but the growth of Marana has required putting the position back in the budget. We are very pleased to have Mr, Romero back with the town. He also noted that the council Executive Report is available for a review of February activities. PRESENTATIONS CONSENT AGENDA. Motion to approve by Council Member Bowen, second by Vice Mayor Post. Passed unanimously. C I Resolution No. 2017-016: Relating to Development; approving a release of assurances for Del Webb at Dove Mountain IV subdivision and accepting public improvements for maintenance (Keith Brann) C2 Approval of February 9, 2017 Strategic Plan Working Group Meeting Minutes -- Heritage, February 21, 2017 Regular Council Meeting Minutes, and February 23, 2017 Strategic Plan Working Group Meeting Minutes -- Recreation (Jocelyn C. Bronson) LIQUOR LICENSES Ll Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a special event liquor license application submitted by Patrick. R. Nilz on behalf of the Marana Heritage Conservancy for Founders' Day to be held on March 25, 2017 (Jocelyn C. Bronson). Ms. Bronson noted that this application had been properly reviewed, and staff is recommending approval, Motion to approve by Council Member McGorray, second by Council Member Kai. Passed unanimously. BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al Resolution No. 2017-017: Relating to Economic Development; Adopting the Economic Development Strategic Plan (Curt Woody). Mr. Woody noted that the process for the Strategic Plan started in September of 2016. loanna Morfesis from 10, Inc. was selected as the consultant for the project, and she has been instrumental in collecting the data since that time. Mr, Woody- introduced Ms. Morfesis, who thanked the Council and the staff for their considerable efforts in helping put this plan and roadmap together. She noted that the plan is based on what makes the most sense for Marana given its people, its built environment and its existing business community, She then outlined the 9-point implementation roadmap for the Plan which incorporates the methodology, principal finding of the environmental scan and a SWOT March 7,2017 Regular Council Meeting Minutes 2 assessment carried out with various segments of the community, principal findings from the competitor market analysis, recommended economic target sectors, Marana"s employment c idors, implementation for economic development and ways to measure Marana's economic orri implementation progress. Moving forward, she stated that it's very important for Marana to have strong partnerships and allies, and it will be important to work with the State of Arizona and the educational community of P-20. For the balance of this decade and moving into the next, it will be important for Marana to engage every quadrant of the community in updating the Plan and growing and strengthening the community. Ms. Morfesis noted a factual error on page 24 under Tangerine Road Corridor: NextGen Corporate Corridor ,for Southern Arizona. There is a reference that the Simon. Company's outlet mall is at that intersection, so the final published version will not include this error. Motion to approve the Economic Development Strategic Plan by Council Member Ziegler, second by Council Member Bowen. Passed unanimously. A2 Resolution No. 2017-018; Approving the sale and execution and delivery of not to exceed in total $46,000,000 aggregate principal amount of pledged excise tax revenue obligations, in one or more series, and pledged excise tax revenue refunding obligations, obligations of each series evidencing a proportionate interest of the owners thereof in a third purchase agreement, approving the form and authorizing the execution and delivery of such purchase agreement, a third trust agreement; approving the form and authorizing the execution and. delivery of such purchase agreement,, a third trust agreement., an escrow trust agreement, a continuing disclosure undertaking, an obligation purchase contract and other necessary agreements; adopting a post- issuance tax compliance and continuing disclosure compliance procedures in connection with issuance of obligations of the Town; delegating authority to the Mayor, Manager and Finance Director of the Town to determine certain matters and terms with respect to the foregoing; authorizing the taking of all other actions necessary to the consummation of the transactions contemplated by this resolution and declaring an emergency (Erik Montague). Presented by Mr. Montague. Staff has been working with outside consultants for the possible sales of excise funding and refunding bonds for the primary purpose of funding the expansion of the water reclamation facility from its current capacity to 1.5MGD as well as re-financing some higher interest 2008 series debt at a lower interest rate. The 2008 bonds were used to construct various road, park and sewer projects. He noted that Mark Reader from Stifel Nicklaus, the underwriter for the transaction, and Michael Cafiso and Paul Gales, bond counsel for Greenberg Traurig, were in the audience. The goal continues to structure the debt service repayment to maximize system- generated revenues through impact fees, and we are starting to minimize the potential impact to the town's general fund. Considerable analysis and revenue and integrative processes led us to this point. The resolution before you is asking for Council consideration to approve up to $46M in these obligations. That amount is intended to set a cap for some flexibility in the amount required based on market circumstance combined with actual pricing for the negotiated GMP 11 for the major portion of the improvements to the water reclamation facility. It is anticipated that the 90% design plans will be in later this week with the final improvement costs. Based on the feedback and direction staff received at various meetings, the resolution provides for certain flexibility to structure the bonds most advantageously, including an early call on some portion of the bonds. Staff has been working closely with Mr. Reader to get an idea of what the cost would March 7,2017 Regular Council Meeting Minutes 3 be for an earlier call provision. Based on preliminary numbers which we are still working to define, it will cost between 20 to 30 basis points. If we reasonably believe that additional revenues will be collected over that first 5-year period, then we could structure a smaller portion of that piece to be call-able sooner. The risk is that if those monies are not available, we may end up paying an additional $300K in interest additional costs for that if we had to hold those through the remaining period. Staff is working closely with the outside consultants to refine that number to determine if it makes sense to have more than two series — one for the reclamation expansion and one for the refunding. He asked that if Council had any comments or questions or findings that need to be discussed, to please get them to directly to him or through the Manager's office by March 13. If approved as read into the record, it would authorize Mayor and staff to prepare and execute all documents related to any issuance. Discussion followed among Council and Mr. Montague, Based on growth assumptions, it does not appear that we will collect excess cash for the 5-year period; it depends on what growth actually happens, and growth needs to occur within the specific service area for this particular plant. Vice Mayor Post indicated that in order to call early, we need a significant growth in that area to which Mr. Montague replied affirmatively. If it's called out early we would save about $2.3M in interest. If it's not, we will accrue additional interest costs. Mayor Honea asked that if we don't do the call option and we do have excess monies and we want to pay down the debt after the first five years, what would the additional penalty be? Mr. Montague responded that with the call protection, we wouldn't be able to call those bonds until they are call-able. So from an economic standpoint you would try to avoid calling them too early because you would have to fund that particular debt until it's call-able, Mr. Reader stated that if we don't have the special call feature and go with the traditional call. for 10 years — even though we will try to shorten that a little, and that would reduce any potential penalty you would have to pay bonds off early. It's a policy issue over the next couple of weeks how much we get from the impact fee revenue. So his suggestion would be to do the call out if there is some extra money-, don't do the call out and we have a nine or ten year call, down the road there will be some sort of penalty associated with it. After you pass the nine or ten year carve out, you could pay that debt down without penalty. Motion to approve by Council Member Bowen, second by Council Mev mber Ziegler. Passed unanimously. ITEMS FOR DISCUSSION/POSSIBLE ACTION DI Relating to f,egislation 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). Mr. Davidson updated Council on the following activities-, the state legislative budget process has started; f1B 2521 which is the TPT reform, is still in holding pattern in the House. There were number of concerns presented by several cities and towns, but he is not sure if the bill will get enough traction to move out of the house and into the Senate.. This bill would have a huge impact on the town's ability to fund capital projects if the construction sales tax goes away. HB 2406 which is about communication between counties and cities, has passed out of the Senate Government Committee and is going to the Senate Rules Committee and then to the Senate Floor by early next week. EXECUTIVE SESSIONS March 7,2017 Regular Council Meeting Minutes 4 9 0 Pursuant to A.R.S. § 38-431.03, the Town Councilmay vote to go into executive session'. which. will not be open to the public, to dt'scuss, certain matters. El 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,, pursuaritto Marana Town Code Section 2-4-2(B). ADJOURNMENT. Motion to adjourn at 7:57 p.m. by Vice Mayor Post, second by Council Member Kal". Passed unanimously. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on March 7, 2017. 1 -further certify that a quorum was present. e.yn Cnson, Town Clerk 4,4< AM K4ARANA AZ ESTA13LISHED 1977 March T 2017 Regular Council Meeting Minutes 5