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HomeMy WebLinkAboutAmended Regular Council Meeting 10/03/2017 MARANA AZ ESTABLISHED 1977 AMENDED OCTOBER 2, 2017 at 10:00 A.M. MARANA TOWN COUNCIL REGULAR COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, October 3, 2017, at or after 7:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member 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 October 3, 2017, at or after 7:00 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. As a courtesy to others, please turn off or put in silent mode all electronic devices. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 7:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings Amended Marana Regular Council Meeting 10/03/2017 Page 1 of 116 If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, 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) 3 82-1999. Requests should be made as early as possible to arrange the accommodation. Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at www.maranaaz.gov under Agendas and Minutes. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at 382-1999, Monday through Friday from 8:00 AM to 5:00 PM. This Notice and Agenda Posted no later than 24 hours prior to the meeting, at the Marana Municipal Complex, 115 5 5 W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina Road, and at www.maranaaz.gov under Agendas and Minutes. REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA 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. 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. PROCLAMATIONS Amended Marana Regular Council Meeting 10/03/2017 Page 2 of 116 MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS P 1 Relating to Budget; presentation of preliminary year end results (fourth quarter) for the Town's General Fund and other selected major funds for the 2016-17 fiscal year (Erik Montague) CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately. C 1 Resolution No. 2017-093: Relating to Public Works; approving and authorizing the Mayor to execute Amendment Number 1 to the Intergovernmental Agreement between the Regional Transportation Authority of Pima County and the Town of Marana for Construction of Improvements to Tangerine Road Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive (Keith Brann) C2 Approval of Study Session Meeting Minutes from September 12, 2017 and Regular Council Meeting Minutes from September 19, 2017 (Jocelyn C. Bronson) LIQUOR LICENSES L 1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a new license series 12 restaurant liquor license application submitted by Andrea Dahlman Lewkowitz on behalf of MOD Pizza, located at 3780 W. Ina Road, Tucson, Arizona 85741 (Jocelyn C. Bronson) L2 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a special event liquor license application submitted by Virgilio "JoJo" Tabo, Jr. on behalf of St. Christopher Roman Catholic Church for Parish Fall Festival to be held on November 4, 2017 (Jocelyn C. Bronson) BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al PUBLIC HEARING: Ordinance No. 2017.018: Relating to Development; amending Marana Land Development Code Title 5 (Zoning), Section 5.12.03 (HI Heavy Industry) to establish a minimum site size and eliminate the minimum parcel size, parcel width, and parcel depth; and designating an effective date (Steven Vasquez) Amended Marana Regular Council Meeting 10/03/2017 Page 3 of 116 A2 PUBLIC HEARING: Ordinance No. 2017.019: Relating to Development; amending Marana Land Development Code Title 16 (Signs), Section 16-08-01 (Signs Exempted from This Title) to revise the regulations pertaining to flags and flagpoles by eliminating flag content restrictions and increasing permissible flagpole heights under most circumstances (Steven Vasquez) A3 Resolution No. 2017-094: Relating to Administration; approving the transfer of up to $125,000 in budgeted expense authority from the Water Operating Fund system repairs and emergency reserve line items in the fiscal year 2017-2018 budget to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area (Erik Montague) ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1 Resolution No. 2017-095: Relating to Strategic Planning; approving and authorizing implementation of Marana Strategic Plan Four (Gilbert Davidson) D2 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) 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. El Executive Session pursuant to A.R.S. §38-431.03 ( 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. § 3 8-431.03(A)(3) & (7) for legal advice with the Town's attorneys regarding the Adonis Mobile Home Park wastewater conveyance system and ponds and to instruct the Town's representatives about negotiations for possible acquisition thereof. 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 Amended Marana Regular Council Meeting 10/03/2017 Page 4 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting P1 Meeting Date: 10/03/2017 To: Mayor and Council From: Erik Montague, Finance Director Date: October 3, 2017 Strategic Plan Focus Area: Commerce Strategic Plan Focus Area Additional Info: Strategic Plan III, Principle Statement 3 - We will invest in a well-managed government that provides reliable services and quality amenities for citizens and businesses. Initiative 15 - Maintain a structurally balanced budget using appropriate resources with associated expenses. Subject: Relating to Budget; presentation of preliminary year end results (fourth quarter) for the Town's General Fund and other selected major funds for the 2016-17 fiscal year (Erik Montague) Discussion: Staff will present a summary of the Town's fourth quarter financial results (July - June) for the Town's General Fund and other selected major funds for fiscal year 2016-17. It is important to note that these results are preliminary, unaudited and subject to change based upon the financial statement audit scheduled for late October. Please find the Financial Brief for the fourth quarter following this communication which provides a broad, preliminary overview of the results for the General Fund and other selected mayor funds. Staff Recommendation: Presentation of fourth quarter results only. Suggested Motion: Amended Marana Regular Council Meeting 10/03/2017 Page 5 of 116 Presentation of fourth quarter results only. Attachments Financial Brief Fourth Quarter Presentation Preliminary Year End Results Amended Marana Regular Council Meeting 10/03/2017 Page 6 of 116 { FY 2016= 17 Financial Brief 4th Quarter 2017 my I NO 49 Prepared by: Finance Department FY 2016-17 Amended - - - Regular Council -- • 10/03/2017 '_•- 7 of Financial Brief—4th Quarter 2017 Contents Summary.........................................................................3 GeneralFund...................................................................4 Transaction Privilege Taxes.......................................4 Intergovernmental....................................................6 Licenses, Fees and Permits .......................................7 Expenditures.............................................................8 BedTax Fund...................................................................9 Highway User Revenue Fund (HURF) ............................10 WaterFund ...................................................................12 Waste Water Fund ........................................................13 %2 Cent Sales Tax Fund ...................................................15 Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 8 of 116 Financial Brief—4th Quarter 2017 Summary This financial brief is intended to provide a broad ri overview and status of revenues and expendituresw . for the Town's General Fund, as well as other u selected major funds. Funds listed in this financial . brief are the General Fund, Bed Tax Fund, Highway User Revenue Fund (HURF), % Cent Sales Tax Fund, " Water Fund, and Waste Water Fund. rt Revenues for General Fund and HURF are in line a with expectations through the end of the fiscal year (July 2016 —June 2017). Revenues for Bed Tax Fund and Water Fund modestly exceeded projected expectations for the fiscal year. This can be attributed to increased growth in economy and faster growth in the customer base than projected. Revenues for % Cent Sales Tax Fund and Wastewater Fund are slightly below projected expectations. An aggressive revenue projection for the % Cent Sales Tax Fund can be attributable to collections falling below expectations. This will be accounted for in future fiscal year projections with a more conservative outlook. Additionally, expenditures for major funds are below projected expectations for the fiscal year. The large variance in the Water and % Cent Sales Tax Funds is attributable to below projected expenditures in capital outlay, which will be carried forward into the next fiscal year. Revenues Expenditures FY 2017 FY 2017 Est. Percentage FY 2017 FY 2017 Est. Percentage Net Revenue Budgeted Revenue of •get Budgeted Expendituresof • • • Revenue Expenditures GENERAL 41 218 185 421780,109 104% 48 685 836 40,738,643 84% 21#264,.567 FUND BED TAX 937,884 11178,535 126% I 940,649 862,367 92% 316,168 HURF 3,100,763 3,105,489 100% I 3,867,177 31607,506 93% (502,017) 1/2 CENT o 0 SALES TAX 6,000,000 5,142,997 86/0 7,092,271 1,368,052 19/0 3,774,945 WATER 4,563,759 5,301,976 116% I 4,842,301 41#161,631 86% 11140,345 WASTE 11#159,.696 1 065 637 92% 1 169 736 1 076 257 92% WATER (10 619) Note: The numbers presented in this brief are preliminary, unaudited and subject to change based upon the results of the year-end financial statement audit. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 9 of 116 Financial Brief—4th Quarter 2017 General Fend General Fund is the Town's primary operating fund. % Share of General Fund Revenues Its revenues are extremely sensitive to fluctuations in 10% ■Sales taxes the regional and national economies. You will notice 26%in the chart to the right that the three major ■Intergovernmental categories presented make up 95 percent of the Licenses,fees overall revenues for the General fund. For fiscal year Mai and permits 2017, the fund largely collected as expected. Licenses, fees and permits exceeded expectations for the fiscal year primarily due to new SFR and Commercial permits. This growth will be taken into account with projected future fiscal years. Below are details regarding General Fund revenues and their framework. General Fund Revenues Fiscal Year 2017 Fiscal Year 2017 Percentage Budget Est.Year End of Budget Sales taxes 24,156,385 25,288,245 105% Intergovernmental 10,805,072 101711,983 99% Licenses,fees and permits 4,040,385 4,837,625 120% General Fund - Major Revenues $30,000,000 FY2014 4th Qtr. $25,000,000 AENEM FY2015 4th Qtr. $20,000,000 FY2016 4th Qtr. $15,000,000 $1010001000 FY2017 4th Qtr. $5,000,000 1-7 $0 Sales taxes Intergovernmental Licenses,fees and permits Transaction Privilege Taxes % Share of Sales Tax Overall tax collections (excluding the restricted portions --- ■RETAIL 04% allocated to other funds Y largely for fiscal year 2017 are lar el - $% ■UTILITIES _ � o p p g within expectations. Retail I tax represents the largest tax 9Y0 E RESTAURANT category which account for 30% of all budgeted ■CONTR revenues for the General Fund. Utility and contracting 0 REAL EST 0 HOTELS Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 10 of 116 Financial Brief—4th Quarter 2017 taxes were slightly below expectations while all others exceeded expectations. As a whole, sales taxes exceeded expectations by$1.6M or 4%for fiscal year 2017. Sales Tax Category Fiscal Year 2017 Fiscal Year 2017 Percent of Budget Estimated Budget Retail 12,652,000 13,658,420 108% Utilities 3,664,160 3,386,062 92% Restaurant 2,159,275 2,256,188 118% Contr. 1,977,750 11#889,267 96% Real Est. 1,030,750 1,231,261 119% Hotels 972,025 11199,916 123 All Others 1,700,425 1,367,132 80% Sales Taxes 14,000,000 12,000,000 10,000,000 ■FY2014 4th Qtr 8,000,000 ■FY2015 4th Qtr 61000,000 FY2016 4th Qtr 4,000,000 FY2017 4th Qtr 2,000,000 � 16� (.5) 4� The graph above compares sales tax revenues through the end of fiscal year with previous fiscal years. This graph is intended to provide a representation of trend for major categories of tax collection revenues. The most significant change is a year over year increase in retail collections and is primarily related to a modest improvement in collections for certain major retailers and the addition of the Tucson Premium Outlets. It is important to note that the number presented here does not include the additional %% in restricted revenues for the public safety facility. Those revenues are recorded in a separate fund. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 11 of 116 Financial Brief—4th Quarter 2017 Intergovernmental Share of Intergovernmental The Intergovernmental revenue category Revenue represents amounts received from the shared ��'''' URBAN REVENUE revenue program. Theses revenues are distributed 17% monthly based upon population estimates. These k I STATE SHARED revenue sources are subject to the overall economic conditions of the State and are subject to _IAUTO LIEU fluctuations. This revenue source is also subject to changes made by the State legislature. Overall, estimated revenues met or exceeded expectations for the fiscal year. Intergovernmental FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 Est. Percentage URBAN REVENUE 3,896,847 41F2321245 4,209,300 5,057,824 5,054,592 100% STATE SHARED 3,043,102 3,195,042 3,344,679 3,891,291 41#107,669 106% AUTO LIEU 1,333,591 1,392,653 111485,151 1,770,957 11765,922 100% Intergovernmental Revenues 6,000,000 5,000,000 FY2014 4th Qtr. 4,000,000 FY2015 4th Qtr. 3,000,000 FY2016 4th Qtr. FY2017 4th Qtr. 2,000,000 1,000,000 �uuuu uuu URBAN REVENUE STATE SHARED AUTO LIEU Illustrated in the graph above you will see a year over year trend from fiscal year 2014 to present. This graphic is intended to demonstrate trend for the intergovernmental revenue collections, as observed above all categories have seen an uphill direction. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 12 of 116 Financial Brief—4th Quarter 2017 Licenses, Fees and Permits %Share of Revenue Type This revenue category represents the third largest 4% 2% 2% ■SFR PERMITS-NEW o% revenue source for the General Fund. Single 40Y ■COMMERCIAL PERMITS- Family Residential (SFR) permits account for the NEW MISCELLANEOUS PERMITS largest portion within this category. SFR revenue exceeded expectations at 114% of the budgeted EXCAVATION AND GRADING PERMTS total for fiscal year 2017. The number of SFR COMMERCIAL PERMITS- permits issued also exceeded expectations at EXISTING 125% of the budgeted total for the fiscal year, or 687 issued permits compared to 550 permits budgeted. Permit Category FY 2017 Budget FY 2017 Est. Percent of YearEnd Budget SFR PERMITS- NEW 2,381,385 2,705,147 114% COMMERCIAL PERMITS- NEW 150,000 391,631 261% MISCELLANEOUS PERMITS 150,500 181,832 121% EXCAVATION AND GRADING PERMTS 100,000 96,650 97% COMMERCIAL PERMITS- EXISTING 85,000 124,705 147% ALL OTHERS 263,500 456,086 173% Permits 3,000,000 2,500,000 21000,000 FY2014 4th Qtr. 1,500,000 FY2015 4th Qtr. FY2016 4th Qtr. 1,000,000 FY2017 4th Qtr. 500,000 - 00 SFR COMMERICAL MISC. EXCAVATION EXISTING ALL OTHERS PERMITS PERMITS PERMITS &GRADING COMMERICAL PERMITS PERMITS Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 13 of 116 Financial Brief—4th Quarter 2017 The graph above compares the end of year revenues of this fiscal year to previous fiscal years. It is important to note that the variation in existing commercial permits is due to the number of Marana Center tenant improvements which recently occurred. Fee Category FY2017 Budget FY2017 Est.Year Percent of • Budget BUSINESS LICENSE 160,000 141,860 89% FRANCHISE FEES 400,000 488,477 122% TIPPING FEES 350,000 251,237 72% License & Fees 400,000 FY2014 3rd Qtr. 300,000 FY2015 3rd Qtr. 200,000 FY2016 3rd Qtr. 100,000 FY2017 3rd Qtr. FRANCHISE FEES TIPPING FEES BUSINESS LICENSE The graph above compares year-end revenues for this fiscal year to year-end revenues in previous years for license and fees. There are some fluctuations among fee revenue collected, however as a whole estimated year end totals are approximately 97% of budgeted totals. Expenditures, General Fund expenditures are presented in five main categories, which are shown in the ie % of Overall Expenditures g p chart to the right. Personnel and benefits Personnel and benefits represent the largest 2/o Contracted services portion of the budget and estimated year end 2oi o Operating supplies& expenditure is 97% of the projected budget. equipment Operating supplies, contracted services and 12% � ®� � Capital outlay p g pp , capital outlay, uses are estimated to be ■Other financing uses significantly below budgeted expectations. Much of these anticipated savings are projected to carry forward into the new fiscal year as significant programs and projects are completed. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 14 of 116 Financial Brief—4th Quarter 2017 Other financing uses are associated with required budgetary transfers for debt service, grant cash match and contributions toward certain capital projects. This category is also expected to be below budgeted expectations primarily due to contributions to major projects. Expenditures FY 2017 Budget FY2017 Est. Percentage YearEnd of Budget Personnel & benefits 26,675,415 25,903,299 97% Operating supplies&equipment 91460,257 5,164,705 55% Contracted services 5,794,855 5,003,804 86% Other financing uses 5,564,145 3,827,770 69% Capital outlay 1,191,164 839,065 70% General Fund Expenditures 30,000,000 III1I1II FY2014 4th Qtr. 20,000,000 FY2015 4th Qtr. FY2016 4th Qtr. 10,000,000 FY2017 4th Qtr. 0 � Personnel and Contracted Operating Capital outlay benefits services supplies& equipment The graph above compares estimated year end General Fund expenditures of this fiscal year to expenditures in previous years. Most of the categories are showing modest increases year over year as reflected in the appropriate year's budget. Bed Tax Fund This fund accounts for the collection of the discriminatory portion of bed tax revenues which are restricted for tourism initiatives. The Town continues to advance key initiatives like the Discover Marana website. Fiscal year 2017 revenue estimates are projected to be above budgeted projections. Overall revenues are estimated to exceed overall expenditures by $316,168 for fiscal year 2017. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 15 of 116 Financial Brief—4th Quarter 2017 1111111110 Bed •x Revenues FY 2014 FY 2015 FY 2016 FY 2017 FY 2017 Est. Percentage YearEndYearEndYearEnd Budget • of i • get Sales taxes 880,490 9441#186 1,068,554 937,884 11#178,535 126% Total Revenues 880,490 944,186 1,068,554 937,884 1,178,535 126% Expenditures Personnel and benefits 221209 49,099 79,945 94,327 80,469 85% Contracted services 629,757 604,829 739,261 739,322 740,274 100% Operating supplies& 109,177 182,359 137,394 107,000 41 624 39% equipment ' Total Expenditures 761,143 836,287 956,600 940,649 862,367 92% Net Over/(Under) 119.347 • • 316.v168 Bed Tax Revenues 11200,000 m FY2014 4th Qtr. 110001000 FY2015 4th Qtr. 800,000 FY2016 4th Qtr. 600,000 FY2017 4th Qtr. 400,000 200,000 0 Sales taxes Highway User Revenue Fund (HURF) HURF is set by the collection of various fees and taxes from users of the State's roads and highways which the State of Arizona collects. An excise tax is charged on fuel purchases on a per gallon basis. Cities and towns receive a percentage of the highway users revenues based on two factors: population estimates, and gasoline sales within each county. These funds are restricted solely for street and highway purposes. This is the primary source of revenue used to maintain the Town's transportation system. HURF revenues (intergovernmental) met budgeted expectations for fiscal year 2017 at $3,105,489 or roughly 100%. Estimated year end expenditures for contracted services and operating supplies slightly exceeded budgeted expenditures while capital outlay is estimated to Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 16 of 116 Financial Brief—4th Quarter 2017 be far below budgeted expenditures. This can be attributed to major capital projects being carried forward into the next fiscal year. Expenditures exceeded revenues by an anticipated amount of $502,017. However this is below the budgeted levels and will be made up from existing fund balances. HURF Revenues FY 14 FY 20151 117 FY 2017 Est. Percentage Intergovernmental 21#286,488 2,483,705 21623,454 31093,263 3,099,309 100% Investment income 1,535 2,027 6,114 7,500 6,181 82% Total Revenues 2,288,023 2,485,732 2,629,569 3,100,763 3,105,489 100% Expenditures FY 14 FY 20151 117 FY 2017 Est. Percentage Personnel and benefits 539,843 563,531 599,890 355,308 350,013 99% Contracted services 1,645,568 21330,910 11#765,557 2,479,582 2,699,346 109% Operating supplies& 217,302 195,408 216,557 190,700 201,332 106% equipment Capital outlay 944,516 345,374 185,663 841,587 356,816 42% Total Expenditures 3,347,229 3,435,224 2,767,667 3,867,177 3,607,506 93% Net Revenue (1.v059.v206 94 1 " • • (502.v017) Over/(Under) HURF 3,500,000 3,000,000 ■Sum of FY2014 4th Qtr. 21500,000 Sum of FY2015 4th Qtr. 2,000,000 Sum of FY2016 4th Qtr. 1,500,000 Sum of FY2017 4th Qtr. 1,000,000 AI 500,000 am III Intergovernmental Personnel& Contracted Capital Operating Revenue Benefits Services Outlay Supplies& Equipment Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 17 of 116 Financial Brief—4th Quarter 2017 Water Fund The Town provides a potable water system service to residences and Monthly Service Fee businesses within its service area. The revenue generated is used to Meter Size Rate 5/8" $ 19.09 cover the costs of administration, operations, maintenance and 1" 46.35 replacement of the water production, treatment, and distribution 1.5" 50.44 system. 2" 58.62 Overall, the Water Fund has received and spent its resources as 4" 139.05 expected. The biggest revenue share within the fund is charges for services (water sales) which modestly exceeded budgeted expectations at $4,952,413 or 115% of its budgeted revenue through the fiscal year. Year-end Water revenues are estimated to exceed expenses by $1,140,345. This surplus is attributed to revenues exceeding expectations while expenditures were below budgeted projections. WATER REVENUES FY 2017 BudgetPercentageFY 2017 Est. YearEn• Budget Charges • • - Charges for services 41311,258 4,952,413 115% Miscellaneous 0 69,984 100% Licenses, fees and permits 25,000 411104 164% Other financing sources 222,501 222,501 100% Total Revenue 4,563,759 5,301,976 116% EXPENDITURES FY 2017 Budget YearEnd Budget Personnel and benefits 1,821,711 1,808,929 99% Contracted services 11#148,533 921,558 80% Operating supplies&equipment 1,3461403 11#2141#437 90% Capital outlay 99,000 85,898 87% T Debt service 426,654 130,810 31% Total Expenditures 4,842,301 4,161,631 86% NET OVER/(UNDER) (278,p542) 1,p140,p345 Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 18 of 116 Financial Brief—4th Quarter 2017 Water 5,000,000 41000,000 IIIIIIII11 FY2014 4th Qtr. 31000,000 FY2015 4th Qtr. 2,000,000 FY2016 4th Qtr. FY2017 4th Qtr. 1,000,000 Charges for services Personnel and Contracted services Operating supplies benefits &equipment Illustrated in the graph to the above, is estimated year-end expenditures for this fiscal year compared to expenditures in previous fiscal years. This graphic is intended to demonstrate trend for the water revenue and expenditures. Most all categories are seeing an increase. As the Town continues to grow so too will costs. Waste Water Fund The Town charges a fee to each sewer Monthly ServiceFee volume Rate system user having a sewer connection or Meter Size IL _J L Rate otherwise discharging sewage, industrial Per meter 1 $12.63 Per 1,000 gallons $4.71 waste or other liquids into the Town's sanitary sewer system. The revenue generated is used to cover the costs of administration, operations, maintenance and replacement of the collection and treatment system. Overall, the fund has received and spent its resources as expected. Charges for services (sewer fees) are the fund's largest revenue category which is near year-end expectations at $1,046,514 or 90% of its budgeted total. Expenditures are also near expectations at $1,076,619 or 92% of the budgeted total. Year-end expenditures are expected to exceed revenues by $10,619 which was anticipated during the budget formation process. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 19 of 116 Financial Brief—4th Quarter 2017 WASTE WATER REVENUES FY 2017 FY 2017 Est. Percentage of Budget YearEnd Budget FY2017 Charges for services 11#156,696 1,046,514 90% Miscellaneous 0 0 100% Licenses, fees and permits 3,000 19,124 637% Total Revenue 1,159,696 1,065,637 92% PercentageEXPENDITURES FY 2017 FY 2017 Est. Budget • Budget FY2017 Personnel and benefits 369,422 380,964 103% Contracted services 664,254 573,597 86% Operating supplies & equipment 136,060 121,695 89% Total Expenditures 1,169,736 1,076,619 92% NET • 1 141 (10,p619) Waste Water 1,200,000 1,000,000 ■ FY2014 4th Qtr. 800,000 FY2015 4th Qtr. 600,000 FY2016 4th Qtr. 400,000 FY2017 4th Qtr. 200,000 � II� Charges for Personnel and Contracted Operating services benefits services supplies& equipment Illustrated in the graph to the above, you will see the year over year trend from 2014 to present for the Waste Water Fund. This graphic is intended to demonstrate the trend for waste water revenue and expenditures. Most all categories are seeing an overall uphill direction. As the Town continues to grow so too will costs. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 20 of 116 Financial Brief—4th Quarter 2017 Y2Cent Sales Tax Fund The Town Council adopted on April 28t", 2015 Ordinance 2015.011 to amend the Town Tax 1/2 Cent Sales taxes Code by increasing the tax rate on certain 5,142,997 activities by one-half cent for the new police FY20174th Qtr. facility. A collection of$18,000,000 shall be '° ����� ���� �° FY2016 Collections collected to build the public safety facility and 41755,945 Target uncollected then the Town will notify the Arizona Department of Revenue to cease collection. Estimated fiscal year 2017 revenue collection is 86% of the budgeted total with expenditures 19% of the budgeted total. With the ground breaking and construction starting in the summer of 2017 it is expected that expenditures will significantly increase beginning the first quarter for fiscal year 2018. Y2CENT SALES TAX FY 2016 FY 2017 Budget FY 2017 Est. Percentage• YearEnd Budget Sales taxes 41775,945 61000,000 5,142,997 86% Total Revenue 4,775,945 6,000,000 5,142,997 86% EXPENDITURES Capital outlay 230,950 7,092,271 11368,052 19% Total Expenditure 230,950 7,092,271 1,368,052 19% NET OVER/UNDER • • 0• •, 1/2 Cent Sales Tax 61000,000 ■FY2016 Collections 4,000,000 FY2017 Collections 2,000,000 Sales taxes Capital outlay The graph above compares the current year's revenue and expenditures to last revenues and expenditures. As mentioned earlier capital expenditures will significantly increase starting in fiscal year 2018. Printed on Friday,September 08, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 21 of 116 MARANA AZ ESTABLI SHED 1977 FY 2017 Year-End Financial Update Erik Montague, Finance Director October 3, 2017 Amended Marana Regular Council Meeting 10/03/2017 Page 22 of 116 FY2017 FINANCIAL UPDATE • Preliminary results for fiscal year 2017(July 2016 — June 2017) • Summary for General Fund and other selected major funds • General Fund Big three revenues — Transaction Privilege (Sales) Taxes — State Shared Revenues — Licenses, Permits & Fees Note: Results are preliminary, unaudited and subject to change Az C==:: GENERAL FUND REVENUES MAIMNA ESTABLISHED 1977 ■ "The Big Three" represent FY 2014 FY 2015 FY 2016 1 ', . = .•- Year End Year End Year End = ••- � 95% of budgeted revenue Revenue Category • Sales taxes 20,333,285 21,827,358 24,180,542 ■ YoY for FY 2017- 0 Sales taxes— 4.6% Intergovernmental 8,273,207 8,914,171 9,139,027 •: ••', ■ Intergovernmental— 17.2% Licenses fees o and permits 319321108 418131378 414681910 0 License&permits— 8.3% p All other 232263828 213993844 116773412 - •- ::', Total Revenues 34,765,428 37395457513934655891 General Fund - Major Revenues SFR Permts $30 - 800 668 687 700 .� $25 - FY2014 4th Qtr. 597 559 550 600 $20 - FY2015 4th Qtr. 500 $15 - FY2016 4th Qtr. 400 300 $10 - FY2017 4th Qtr. 200 r, 100 $s - 70 $0 ALI 2014 4th 2015 4th 2016 4th 2017 4th 017 Sales taxes Intergovernmental Licenses,fees and Qtr Qtr Qtr Qtr Efudget permits Amended Marana Regular Council Meeting 10/03/2017 Page 24 of 116 GENERAL FUND EXPENDITURES ESTABLISHED 1977 Expenditure Category FY 2014 FY 2015 FY 2016 - ', = ••- • Year End Year End Year End Personnel and benefits 2119791819 2318321313 2416831665 - •• ', Contracted services 313421124 410971909 419861494 •- - :.', Operating supplies& 2,893,441 3,398,062 4,534,908 equipment ' Capital outlay 113521291 118191599 6731417 •- ', Other financing uses 214531592 318781770 613351075 •- - : ••', Total Expenditure's 3230213267 3730263653 4132133559 - : •: - •- :-', Over/(Under) 257443161 9283098 (137473668) - • - - •• ■ Overall —within General Fund Expenditures expectations - - 30,000,000 FY2014 4th Qtr. 20,000,000 FY2015 4th Qtr. ■ Estimated savings to carry forward as programs and 10,000,000 FY2016 4th Qtr. ..� � FY2017 4th Qtr. projects are completed 0 Personnel and Contracted Operating Capital outlay benefits services supplies& equipment Note 1:General Fund budget includes$51VI in contingency and$21VI for Police Facility General Fund Contribution Amended Marana Regular Council Meeting 10/03/2017 Page 25 of 116 Az MA"NA A -7 BED TAX FUND E STA BL I SHE D 1977 Bed Tax Revenue Category FY 2014 FY 2015 FY 2016 - '. = ••- • Year End Year End Year End Sales taxes 8801490 9441186 110681554 ::- •', Total Revenues 8805490 9445186 150685554 ::- •', Bed Tax Expenditure Category Personnel and benefits 221209 491099 791945 •- - •• ', Contracted services 6291757 6041829 7391261 Operating supplies&equipment 1091177 1821359 1371394 - - •', Total Expenditures 7615143 8365287 9565600 •- •- • :• ', Net Over/(Under) 1195347 1075899 1115954 • ■ Revenues— Bed Tax Revenues ■ YoY for FY 2017—10.3% ■ Expenditures— 900,000 800,000 ■ Operating supplies&equipment below 700,000 FY2014 3rd Qtr. budgeted totals due to rebates to 600,000 FY2015 3rd Qtr. developers being less than anticipated. 500,000 400,000 FY2016 3rd Qtr. 300,000 FY2017 3rd Qtr. 200,000 100,000 0 Sales taxes Amended Marana Regular Council Meeting 10/03/2017 Page 26 of 116 Az C==:: HIGHWAY USER REVENUE FUND (HURF) ESTABLISHED 1977 HURF Revenue Category FY 2014 FY 2015 FY 2016 ', = • •Year End Year End Year End = ••- Intergovernmental 212861488 214831705 216231454 •• '. Other income 61607 51729 61114 Total Revenues 21293,095 25489,434 2,629,568 - :• '. HURF Expenditure Category Personnel and benefits 539.843 5631531 5991890 : ••', Contracted services 116451568 213301910 117651557 - ••• - • •' Operating supplies&equipment 2171302 1951408 2161557 111•', Capital outlay 9441515 3451374 1851663 Total Expenditures 31347,228 394359224 2,767,667 :• ', Net Over/(Under) (11054,133) (945,790) (138,099) •• - - HURF Expenditures ■ Revenues— 3,000,000 ■ Overall within expectations 2,500,000 ■ YoY for FY 2017—18.1 ■ Expenditures— 2,000,000 FY2014 4th Qtr. ■ Capital outlay below budgeted 1,500,000 FY2015 4th Qtr. projections due to projects being carry forward into next 1,000,000 FY2016 4th Qtr. fiscal year Q 4 ht FY2 17 r. 0 t 500,000 0 ip Personnel and Contracted services Operating supplies Capital outlay benefits &equipment Amended Marana Regular Council Meeting 10/03/2017 Page 27 of 116 AN 1/2 CENT SALES TAX FUND M 1977 ■ Revenues — Revenues Target FY 2016 ' , of Budget Year • • - Year End Budget Year End for FY 2017 • • • - ■ Anticipated to approach bud et i n future due to Sales taxes 1810001000 417751944 630003000 531423997 :.', g 6611 some seasonality Total Revenue 1810001000 417751944 630003000 53421399786% , variation Expenditures ■ Will need to monitor Capital outlay 2301950 730923271 133683052 •', ■ Expenditures are lagging, 0 Total Expenditure 2301950 •. , • but will soon approach or budget as major projects Net Over/Under 435443995 (110923271) 337443945 co -- •- commence in 1St Qtr. of next 1/2 Cwallles taxes fiscal year 5,142,997 FY2017 Collections 8,081,058 FY2016 Collections 4,775,9450 Target Uncollected Amended Marana Regular Council Meeting 10/03/2017 Page 28 of 116 Az C==:: WATER OPERATING FUND D 197 7 Revenue Category FY 2014 Year End FY 2015 Year End FY 2016Year End = ••- Charges for services 337201860 410521698 431371709 Miscellaneous 163810 461310 671104 •• •:- ', Licenses,fees and permits 291790 465893 381285 Investment income - 6.334 111421 - •', Other financing sources 115123480 9741262 215151442 Total Revenue 532793940 531263497 637695961 Expense Category Personnel and benefits 112641372 114911956 116105546 : : ••', Contracted services 6131276 5221373 6201704 Operating supplies&equipment 8823626 9411208 9291437 -• - - - ', Capital outlay - - - •• '•' ' Debt service 1483062 1501628 1403578 Total Expenditures 2,9083336 33106,166 3,3013264,� - :- - :•', Over/Under 2 371 604 23020,331 3 468 698, - - - Water ■ Revenues — 6,000,000 ■ Modestly exceeded FY2014 4th Qtr. expectations 4,000,000 FY2015 4th Qtr. ■ Expenses — 2,000,000 FY2016 4th Qtr. ■ Non-personnel FY2017 4th Qtr. categories slightly below projected levels Charges for Personnel and Contracted Operating services benefits services supplies& equipment Amended Marana Regular Council Meeting 10/03/2017 Page 29 of 116 WASTEWATER • FUND M 1977 Revenue Category FY 2014 Year End FY 2015 Year End FY 2016 Year End = ••- Charges for services 8251342 9235166 9961260 ••• -• - ', Miscellaneous - - - Licenses,fees and permits 83977 103242 175523 Total Revenue 8345139 9331408 110131783 • ••• Expense Category Personnel and benefits 2995513 3491762 4021712 •• - ••- ', Contracted services 4171402 3781085 5295704 ••- - :•', Operating supplies&equipment 881441 1201718 1331340 1•1 •• :•', Total Expenditures 805,356 8483561 130653755 •• ', Over/(Under) 28 963 84 847 (513972) - • ■ Revenues — Wastewater Expenses ■ Slightly below expectations $00,000 irk_ FY2014 3rd Qtr. ■ Expenses - 600,000 FY2015 3rd Qtr. ■ Non- e rs o n n e I 400,000 FY2016 3rd Qtr. p cate ories sli htl 200,000 FY2017 3rd Qtr. g g y below projected levels Charges for Personnel and Contracted Operating services benefits services supplies& equipment Amended Marana Regular Council Meeting 10/03/2017 Page 30 of 116 Questions? MAPANA ESTABLISHED 1'477 10 Amended Marana Regular Council Meeting 10/03/2017 Page 31 of 116 .Ad MARANA AZ ESTABLISHED 1977 Council-Regular Meeting C1 Meeting Date: 10/03/2017 To: Mayor and Council Submitted For: Keith Brann, Town Engineer From: Frank Cassidy, Town Attorney Date: October 3, 2017 Strategic Plan Focus Area: Not Applicable Subject: Resolution No. 2017-093: Relating to Public Works; approving and authorizing the Mayor to execute Amendment Number 1 to the Intergovernmental Agreement between the Regional Transportation Authority of Pima County and the Town of Marana for Construction of Improvements to Tangerine Road Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive (Keith Brann) Discussion: Council approved the RTA Tangerine Corridor construction IGA in September 2015, and in September 2016 approved an amendment to add wildlife linkages funding. "Amendment Number 1" to the IGA is now proposed to provide an additional $2.89 million in RTA funding as a first step in filling an anticipated loss or delay in $6.5 million of Pima County development impact fee funding. Financial Impact: This amendment reflects a change in internal RTA cash flow, and should not ultimately increase or reduce the total funding provided by the RTA to the Town of Marana for the Tangerine Corridor Project. Staff Recommendation: Town staff recommends adoption of Resolution No. 2017-093, approving and authorizing the Mayor to execute Amendment Number 1 to the RTA Tangerine Corridor construction IGA. Suggested Motion: Amended Marana Regular Council Meeting 10/03/2017 Page 32 of 116 I move to adopt Resolution No. 2017-093, approving and authorizing the Mayor to execute Amendment Number 1 to the RTA Tangerine Corridor construction IGA. Attachments Resolution No. 2017-093 Exhibit A to Resolution ST021 RTA Amendment 1 Exhibit A to IGA Amended Marana Regular Council Meeting 10/03/2017 Page 33 of 116 MARANA RESOLUTION NO. 2017-093 RELATING TO PUBLIC WORKS; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NUMBER 1 TO THE IN TERGO VERN MENTAL AGREEMENT BETWEEN THE REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY AND THE TOWN OF MARANA FOR CONSTRUCTION OF IMPROVEMENTS TO TANGERINE ROAD—DOVE MOUNTAIN BOULEVARD/TWIN PEAKS ROAD TO LA CANADA DRIVE WHEREAS the Town Council adopted Marana. Resolution No. 2015-102 on September 15, 2015, approving an intergovernmental agreement with the Regional Transportation Authority of Pima County (RTA) for construction of i nprovements to Tangerine Road from Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive; and WHEREAS the parties amended the intergovernmental agreement to provide for funding of wildlife linkages, approved by the Town Council's adoption of Marana Resolution No. 2016-094 on September 20, 2016; and WHEREAS the Mayor and Council of the Town of Marana feel it is in the best interests of the citizens of Marana to enter into Amendment N o. 1 to the intergovernmental agreement. NOW, THEREFORE, BE IT RES O LVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that Amendment Number 1 to the Intergovernmental Agreement between the Town of Marana and the RTA for Construction of Improvements to Tangerine Road from Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive attached to this resolution as Exhibit A is hereby approved, and the Mayor is authorized to execute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, conditions and objectives of this intergovernmental agreement as amended. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona., this 3rd day of October, 2017. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney 00054251.DOCX/1 Marana Resolution No.2017-093 9/21/2017 2:43 PM Amended Marana Regular Council Meeting 10/03/2017 Page 34 of 116 AMENDMENT NUMBER I TO THE INTERGOVERNMENTAL TRANSPORTATION FUNDING AGREEMENT BETWEEN THE REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY AND THE TOWN OF M ARANA FOR CONSTRUCTION OF IMPROVEMENTS TO TANGERINE ROAD —DOVE MOUNTAIN BOULEVARD/ TWIN PEAKS ROAD TO LA CANADA DRIVE This Agreement (this "Agreement") is entered into by and between the REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY (the "Authority" or the "RTA"), an Arizona special taxing district formed pursuant to Title 48 Chapter 30 of the Arizona Revised Statutes (A.R.S.), and the TowN OF MARANA (the "Town of Marana" or the "Lead Agency"), an Arizona municipal corporation. The Authority and the Lead Agency are sometimes collectively referred to as the "Parties," either of which is sometimes individually referred to as a "Party." REcrrALs A. The Lead Agency and the Authority entered into an IGA, recorded with its authorizing resolutions on the Pima County Recorder's office on October 21, 2015, at Sequence 2052940571 (the "RTA Tangerine Construction IGA") to facilitate the construction of improvements to Tangerine Road— Twin Peaks Road to La Canada Drive (the "Project"). B. The Lead Agency and the Authority entered into an amended IGA, recorded with its authorizing resolutions on the Pima County Recorder's office on December 6, 2016, at Sequence 20163410467 (the "RTA Tangerine Wildlife Linkages Amendment") to augment the construction project with wildlife linkages improvements to Tangerine Road— Twin Peaks Road to La Canada Drive (the "Project"). C. The Parties enter into this Amendment to increase the amount of RTA funding to the project by $2,89000. AG NT Now, THEREFORE, the Town of Marana and the Authority, pursuant to the above and in consideration of the matters and things set forth in this Agreement, do mutually agree as follows: 1. Exhibit B attached hereto and incorporated herein by reference increases RTA funding for the construction of the Tangerine Road—Twin Peaks Road to La Canada Drive project From: "...$3413551000 To: "...$37,24500 2. The effective date of this Amendment shall be September 31, 2017. All other provisions not specifically changed by this amendment shall remain in full force and effect. - 1 - 9/12/2017 Amended Marana Regular Council Meeting 10/03/2017 Page 35 of 116 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the last signature date below. REGIONAL TRANSPORTATION AUTHORITY TOWN OF M ARANA OF PIMA COUNTY Board Chair Ed Honea, Mayor Date: Date: ATTEST: Town Clerk The foregoing Agreement between the Town of Marana and the Authority has been approved as to content and is hereby recommended by the undersigned. Mr. Farhad Moghimi, Executive Director Keith Brann, Town Engineer INTERGOVERNMENTAL AGREEMENT DETERMINATION The foregoing intergovernmental agreement between the REGIONAL TRANSPORTATION AUTHORITY OF PIMA COUNTY and the TOWN OF MARANA has been reviewed pursuant to A.R.S. § 11-952 by the undersigned, who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to the Party to this intergovernmental agreement represented by the undersigned. REGIONAL TRANSPORTATION AUTHORITY TOWN OF M ARANA: OF PIMA COUNTY: Thomas Benavidez Frank Cassidy Attorney for the Authority Town Attorney Date: Date: - 2 - 9/12/2017 Amended Marana Regular Council Meeting 10/03/2017 Page 36 of 116 Regional Transportation Authority of Pima County Date: September 28,2017 Exhibit: B Item: 1 RTA Resolution: 2017-015 1. TIP Project Number: 86.06 RTA Ballot: 1 RTA Project ID: 01-a 2. Sponsor: Marana 3. RTA Plan Element: I Roadway 4. RTA Plan Sub-Element(If Applicable): 5. Project Name: Tangerine Rd:1-10 to La Canada Dr 6. Work Phase(s)Covered by the Exhibit: Planning/Design: $ - Right of Way: $ 8,500,000 Construction: $ 22,305,000 Operations: $ - Total: 30,805,000 7. Project Manager Information(person responsible for Status Reports): Name: Tom Houle Mailing Address 11555 W.Civic Center Drive City,ST Zipcode Marana I AZ 85653 Telephone Number: 520.382.2600 Email Address: thoule@maranaaz.gov 8. Authorized Representative(s)(will sign&submit pay requests): Name: Tom Houle Mailing Address 11555 W.Civic Center Drive City,ST Zipcode Marana I AZ 85653 Telephone Number: 520.382.2600 Email Address: thoule@maranaaz.gov Name: Mailing Address City,ST Zipcode AZ Telephone Number: Email Address: 9. Widen to 4 lanes with sidewalks&multi-use lanes:Widen to 4 lane divided desert parkway,bike lanes,drainage and turn lanes. Phase I Dove Mountain/Twin Peaks to La Canada Narrative Description of Project Scope, including improvements to be made and project intent (discuss how project will address problematic areas): 10. Total maximum amount of Authority funding allowed for the Project or Project Component, under this Exhibit: $ 2,890,000 11. $ 2,890,000 Total maximum Authorized RTA funding for the Project,or Project component to-date,including this exhibit.(If this is an amendment to an existing contract,please give the requested amended total. 12. Project Budget by Funding Source&Phase: RTA Non-RTA Total Study(DCR/Wildlife Linkages/Value Analysis)= $ 2,740,000 $ 2,740,000 Planning/Design= $ 3,200,000 $ 3,200,000 Right of Way= $ 9,000,000 $ 9,000,000 Construction= $ 19,415,000 $ 19,415,000 Operations(Transit)= $ - $ - $ - Total= $ 34,355,000 $ - $ 34,355,000 13. Project Budget by Funding Source,this exhibit: RTA Non-RTA Total Study(DCR/Wildlife Linkage/Value Analysis)= $ - Planning/Design= $ - Right of Way= $ - $ - Construction= $ 2,890,000 $ 2,890,000 Operations(Transit)= $ - Total= $ 2,890,000 $ - $ 2,890,000 Resources Committed Project Resources as (Includes this Remaining Resource 14. Funding Sources(current year dollars): outlined in the Ballot request) Budget RTA $ 45,325,000 $ 37,245,000 $ 8,080,000 STP $ - $ - 12.6%Funds $ 7,650,000 $ 7,650,000 $ - 2.6%Funds $ - $ - $ - Impact Fees $ - $ - $ - Pima County Local $ 6,500,000 $ 6,500,000 $ - Town of Marana Local $ 21,390,000 $ 10,000,000 $ 11,390,000 Fare Box Revenue $ - $ - $ - FTA Funds $ - $ - $ - Oro Vlley Local $ 1,000,000 $ 1,000,000 Total Funding Sources: $ 81,865,000 $ 62,395,000 $ 19,470,000 15. Estimated completion date of work funded by this IGA: 09/01/18 Duration of work covered by this funding request: Amended Marana Regular Council Meeting 10/03/2017 1of1 Page 37 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting C2 Meeting Date: 10/03/2017 To: Mayor and Council Submitted For: Jocelyn C. Bronson, Town Clerk From: Suzanne Sutherland, Assistant to the Town Clerk Date: October 3, 2017 Subject: Approval of Study Session Meeting Minutes from September 12, 2017 and Regular Council Meeting Minutes from September 19, 2017 (Jocelyn C. Bronson) Attachments Draft September 12, 2017 Study Session Meeting Minutes Draft September 19, 2017 Regular Council Meeting Minutes Amended Marana Regular Council Meeting 10/03/2017 Page 38 of 116 ESTABLISHED 1977 MARANA TOWN COUNCIL STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona. 85653 Conference Center on 2nd Floor, September 12, 2017, 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 MINUTES CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 6:02 p.m. Deputy Town Clerk Hilary H. His e r called the roll. Council Member Kai was excused, constituting a quorum of six council members. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Council Member Ziegler motioned to approve the agenda, with a second provided by Council Member McGorray. Passed 6-0. CALL TO THE PUBLIC DISCUSSION/DIRECTION/POSSIBLE ACTION Mayor Honea announced that items DI and D2 would be read into the record concurrently as both items relate to the creation and operations of community facilities districts. Mayor Honea indicated that DI is more of an overview of the parameters and guidelines defined by the State, while item D2 is related the possible creation of a community facility district for the Villages of Tortolita project. Although the presentation would start with item D1, discussion of item D2 could occur when there was significant overlap in subject matter. September 12,2017 Study Session Minutes 1 Amended Marana Regular Council Meeting 10/03/2017 Page 39 of 116 DI Relating to Development; presentation regarding changes to the community facilities district policy required by SB 1480 revisions; community facilities districts and consideration of other option changes. D2 Relating to Development; overview of staff negotiations regarding the Villages of Tortolita project, including a draft development agreement to address needed transportation infrastructure and a possible community facilities district development agreement. Town Manager Gilbert Davidson introduced the Town's outside bond counsel, Michael Cafis o, and financial advisor, Mark Reader. He encouraged the Council to direct questions to Mr. Cafiso and Mr. Reader regarding the creation, structure, and operations of community facility districts (CFDs) because of their subject matter expertise. Mr. Davidson provided a brief overview of the presentation's format indicating the staff would first focus on the Town's policy and use of CFDs, and then focus on the impact of the new CFD legislation on the development of future CFDs. Finance Director Erik Montague started the presentation by reviewing what a CFD is and how it is used. CFDs are special purpose taxing districts that levy a tax on properties within the district to fund public infrastructure projects roads, parks, water/wastewater improvements, etc. Only property owners within the district are responsible for the debt incurred to build the public infrastructure. The 1988 Arizona. Community Facility District Act authorizes the creation of a CFD. Mr. Montague described several reasons why creating a CFD could be beneficial to the Town. He explained that CFDs could facilitate development in an area that might not otherwise occur, advance the tuning of development in an area, and provide specific improvements such as infrastructure or enhanced services. Mr. Montague emphasized that CFDs can help to favorably position the Town, from a competitive standpoint, to attract future development opportunities. Because CFDs provide financing structures for infrastructure development they provide project value back to the developer by creating access to areas that might not otherwise have been availab le. Mr. Montague provided the Council an overlay map with the locations of the Town's current CFDs and possible CFDs for proposed projects. Mr. Montague noted the Town's earliest CFDs, Red Hawk Phase I, Red Hawk Phase II, and Dove Mountain Resort, were created in the mid- 1990s and early 2000s. He explained that the Dove Mountain area CFDs were created as separate independent boards. Mr. Montague acknowledged the Town's more recent CFDs at Gladden Farms I, Gladden Farms II, Vanderbilt, and Saguaro Springs developments use the Town Council as the CFD board instead of appointing a separate board. Mr. Montague further explained that the Town's CFD policy, adopted in 1997 and amended in 2004, guides the current creation of CFDs. The policy specifically articulates criteria the Town will follow when considering the formation of a CFD. The policy ensures proposed projects are well planned and the developer has financial capacity to meet the debt obligation. The policy helps ensure that there are reasonable measures to protect homeowners and businesses within the CFD, such as e stab lishing a target tax rate. Mr. Montague explained the difference between the three main types of bonds acceptable in the current policy. Although there are three types of bonds available for use, general obligation and September 12,2017 Study Session Minutes 2 Amended Marana Regular Council Meeting 10/03/2017 Page 40 of 116 special assessment bonds are the primary instruments used. General obligation bonds are backed by a secondary property tax that is levied against all properties within the district. Special assessment bonds are levied against an individual property as a flat amount based on lot size, frontage, or use. The law and Town policy allow for revenue bonds; however, that bond type is dependent upon having a pledged revenue source. Mr. Cafis o indicated that utility and entertainment districts more commonly use the revenue bond option because they generate revenue through some type of service delivery. Mr. Montague noted that the bond election limits the amount of bonds issued and sets a maximum number. He explained that the $2.50 tax rate e stab lishe d by the Town is a target rate, but there is still a financial obligation to levy a rate that will meet the debt service in a given year. The development agreement outlines protections for homeowners such as standby contributions by the developer to ensure that the debt service is met. He noted that during any year where generated tax revenue does not meet the debt service obligation, the developer is required to pay the shortfall and make the district whole. To visually represent the need for sound policy regarding repayment requirements, Mr. Montague presented a chart comparing the minimum rate that would have been required for Gladden Farms CFD for repayment of the debt versus the actual tax rate imposed. The chart illustrated the property valuation within the district from 2006 to 2017 highlighting the revenue shortfall generated by the tax rate, but paid for by the developer during the height of the recession. Mr. Montague also reported that to date the Town's Council-governed CFDs have not levied any special assessments on individual properties. He explained that the special assessment tax levied against the individual property could be paid one of two ways. One method of payment is to include the tax on the yearly property tax bill or the other method of payment allows the property owner to directly pay the full assessment to the district. Shifting to a review of the changes required by S131480, Mr. Montague reviewed the conforming changes the Town's policy will have to incorporate to comply with S131480. Among those changes for inclusion are the description of the applicant and other representatives associated with the CFD, a general plan for the infrastructure, and a preliminary financing plan that includes sources and uses of funding. Additionally, the statute now limits the application fee to $15,000 max as opposed to the Town's current $75,000 and $25,000 fees. Mr. Montague noted that if the costs to the Town were less than $15,000 the developer could defer those savings to cover future costs. Mr. Montague indicated the new legislation's revised timeframe requires a public hearing within 60 days of receiving a CFD application. Although the petition for formation is not a presumption of approval, Mr. Montague observed that the accelerated timeframe would suggest otherwise. This timeframe requirement will necessitate extensive pre-planning between staff and the applicate to accommodate the newly imposed deadlines. If the Council rejects an application, the Town must publically provide clear guidelines related to revision and resubmission needed to approve the application. Mr. Montague reviewed other changes required by S131480. First, a new enhancement limitation states the Council cannot ask the developer to increase the infrastructure that is not specifically necessary for the development. The statute also prohibits the increase in sizing, the September 12,2017 Study Session Minutes 3 Amended Marana Regular Council Meeting 10/03/2017 Page 41 of 116 amount, or timing of the bonds issued. These changes limit the Town's past practice of using additional capacity to fund infrastructure projects that have a regional benefit beyond the district. With the enhancement limitation, the infrastructure development and financing will be limited to that particular development only. The second change Mr. Montague reviewed was the creation of a website and searchable database for CFD related information. The transparency requirement states the CFD will provide a digital application that allows the public to search for contracts, public notices, meeting minutes, resolutions, and other documents accounting for the money received and disbursed by the district. Finally, Mr. Montague explained that the statute changes would impact the Town's procedural process regarding the acceptance of infrastructure. He described that the statute has an aggressive timeframe for acceptance of completed infrastructure. Once a section of infrastructure is complete, the Town will be required to accept ownership and maintenance within 30 days of receipt of the final engineer's certificate. Mr. Cassidy then reviewed the CFD requirements that remain unchanged. First, the CFD board will continue to have typical governing body power such as setting and approving the CFD's budget, approving the timing and amounts of bonds issued, and setting tax rates. The set tax rates will continue to fund the operations and maintenance of the infrastructure, as well as provide for the necessary debt service. Additionally, the CFD board members are still considered public officers governed by the same conflict of interest rules and open meeting law requirements as other public bodies. Mr. Cassidy explained that the new legislation has changed the composition of the Council CFD board. The CFD statutes have always allowed and continue to allow the Council to establish a five-member separate board to govern the CFD. But prior to passage of S131480, the Council was able to create a CFD with the Council sitting as the district board. Now, if the Council opts to sit as the CFD board, the new legislation requires that the governing body include two additional members nominated by the largest landowner in the district—a CFD board of nine members total. Under the legislation, the two additional board members may not be landowners of more than 40 acres in the district and must not be directly associated with the developer or the Town. However, Mr. Cassidy explained that the largest landowner in the district does have the ability to nominate the two additional CFD board members. SB 1480 also requires the CFD application to clearly define the method of selection for the additional board members once the development is complete. Mr. Davidson focused Council's attention on providing direction to staff regarding the CFD board structure and also on the necessary policy changes related to financing options. He asked the Council to consider the board composition between the options created by SB 1480 and a third hybrid option identified by staff–a separate board coupled with a strong development agreement that limits certain powers of the governing body. If the Council were to choose the hybrid, the development agreement could include requirements that the CFD appoint its own manager, clerk, and treasurer. The development agreement could also require that the CFD or the developer pay for all costs associated with the CFD and could establish maximum tax rates. This September 12,2017 Study Session Minutes 4 Amended Marana Regular Council Meeting 10/03/2017 Page 42 of 116 third hybrid option could allow the Council to choose future board members who reside in within the CFD. Council Member B owe n asked if the Legislature intended for the creation of this hybrid third option and if the Council were to choose this option would it clear any legal hurdles. Before answering Council Member Bowen, Mr. Cassidy noted that the legislation has a conforming error regarding the establishment of the board with reference to the council plus two option. Turning to Council Member Bowen's question, Mr. Cassidy explained that although the statute does not specifically mention the creation of a separate CFD board plus development agreement, just from historic analysis creation of a CFD has occurred concurrently with the adoption of the development agreement. Mr. Cassidy further explained that this hybrid option allows clearly articulated elements in the agreement. For example, it could ensure that none of the CFD's operating costs are transferred to the Town, and could require that tax rates be maintained at certain levels. He emphasized that this option allows the Council some flexibility to determine the five member board representation. Although the statute does not expressly address the adoption of the hybrid option, Mr. Cassidy said he does not see any legal reason to prevent the adoption of the hybrid board option. Mr. Cafis o indicated that the conforming issue within the statute, identified by Mr. Cassidy, would be problematic for future board operations if not addressed by the Legislature. He noted that several municipal and county entities that are considering the creation of a separate CFD board with a strong development agreement. Shifting the Council's focus to the taxing options, Mr. Montague asked for specific direction regarding the policy changes related to the types of debt issued. To help frame the discussion, Mr. Montague presented a hypothetical chart breaking down the impact of a general obligation bond on the assessed value of a hypothetical representative $250,000 home in the district. To calculate the impact of the target tax rate on a general obligation bond, Town staff assumed that the full cash value (FCV) of the property would be 80% percent of its actual value, or $200,000. Then the limited assessed value (LAV) is calculated based on the class of home. For residential (class 03), it's 10% of the FCV, so a $200,000 full cash value has a limited assessed value of $20,000. For simplicity, we talk about tax rates per $100. A home with a limited assessed value of $20,000 will have 200 increments of $l 0O.Multiplying 200 by the $2.80 tax rate ($2.50 target tax rate + $0.30 for district operations and maintenance) yields a total yearly secondary tax bill- of illof $560 to repay the CFD general obligation bond. Mr. Montague explained that the annual secondary tax obligation continues until the CFD's general obligation bonds are retired. Mr. Montague noted that as you increase the target tax rate slightly, the property owner's yearly obligation would increase correspondingly. For a point of comparison, Mr. Montague stated that a set target tax rate of $4.55 per $100 of assessed value would equate to the property owner of the hypothetical $250,000 home paying $910 yearly into the district until the debt is retired. He explained that there should be a reasonable exchange between the enhancement of the district and the services provided to residents. Mr. Montague continued with his hypothetical by reviewing the financial impact on property owners when layering both a general obligation bond and a special assessment bond across the district. With the application of a special assessment, the district sets a defined amount and over September 12,2017 Study Session Minutes 5 Amended Marana Regular Council Meeting 10/03/2017 Page 43 of 116 a limited timeframe, such as a 20 year period, with a fixed rate. Mr. Montague explained that the property owner would pay the assessed tax related to the general obligation bond at a fixed yearly payment allocated specifically to the special assessment bond. For example, with a secondary tax rate of $2.80 to fund general obligation bonds and O&M plus a special assessment of $4,500, the property owner of the hypothetical $250,000 home will pay the general obligation bond rate of $560 plus the fixed assessment rate of $225 making a total tax payment to the district of $785 yearly. With these general obligation and special assessment bonds levied at the same tame, the property owner would pay an effective tax rate of $3.93 per $100 of assessed value. Council Member B owe n asked why the Town would have both a general obligation bond and a special assessment bond levied at the same time rather than just choose one bond type over the other. Mr. Montague explained that based on the timing of the necessary public improvements that have to happen and where there are significant outlays of funds it is advantageous to the Town because the developer is responsible for the shortfall in tax revenue needed to cover the general obligation debt. He noted that the developer's ability to recoup costs associated with the public infrastructure is dependent on the market's growth curve. Mr. Montague explained that for some developers investing large amounts in the construction of infrastructure, the special assessment provides a quicker rate of return with the ability to recoup the costs of construction of the infrastructure asset. Expanding on the rationale for using a special assessment bond, Mr. Reader explained the difference is between future value dollars or present value dollars. With regards to general obligation bonds, the developer will put the infrastructure in the ground and as homes are built and the budget structure increases to help the developer recoup costs. Vice Mayor Post asked if a special assessment includes the future value of the property and does developer pay the debt service obligation until the property is sold. Mr. Reader responded that with a special assessment bond, those are present value bonds based on the assessed value of the property at the time of the assessment. He noted that at the time of the bond sale, that the special assessment obligation is set regardless of whether or not the land is vacant or developed within a district that is 6,000 plus acres. Once a special assessment is allocated to the property, it remains with the property until the property owner has paid it off completely. Vice Mayor Post clarified that a special assessment bond value for the property is relatively low versus the assessed value of the property associated with a general obligation bond. Mr. Reader confirmed that interpretation. As a follow-up, Vice Mayor Post asked how the role of impact fees plays within the decision to use debt instruments for infrastructure development within the CFD. Mr. Cafis o responded that the Council cannot "double dip" with regard to fees. He elaborated that jurisdictions that impose a regional impact fee, those impact fee dollars within the CFD district are lower if the district is substantially responsible for the construction of infrastructure that has a regional impact. Vice Mayor Post observed that with the credit of the impact fees towards the infrastructure to the CFD, it creates an un-level planning field between developers selling property at fair market value. Although Vice Mayor Post acknowledged the need for a method to recoup the costs of infrastructure, he does support the CFD model. Mr. Cafis o acknowledged that there is difference September 12,2017 Study Session Minutes 6 Amended Marana Regular Council Meeting 10/03/2017 Page 44 of 116 between the sale of homes within and outside a CFD development. He noted that to justify that difference in price, the CFD agreement is designed to provide additional amenities within the district to mitigate the cost of the bonds, such as wider streets or parks. Vice Mayor Post asked how the Town handles a development that constructs public infrastructure with a greater regional benefit in and outside the district. Mr. Cafis o responded that there is no specific way to account for oversize infrastructure in regards to the financing obligation because the development agreement is tailored to the development and relies on general obligation bonds. Council Member Comerford said in this instance (referencing the proposed Villages of Tortolita project) with the construction of an interchange where a lot of people benefit from it, not just the developer, what is the Town to do. Mr. Reader replied that those individuals could be included in the district because they benefit from the public infrastruc ture. Mr. Cafis o also offered an option of creating an intergovernmental agreement that defines cost sharing of the construction of the infrastructure project by the areas and/or entities that are benefiting from the public infrastructure. Vice Mayor Post asked if the Town could be that designated entity. Mr. Cassidy responded that the draft development agreement for the Villages of Tortolita includes a provision that allows a portion of the costs of construction to be eligible for reimbursement from the Town's impact fee structure. He noted that the developer would build the interchange and the Town would refund a portion of the impact fee that is attributable to the interchange to the developer for the costs of construction. Mr. Cassidy noted that those properties within the Villages of Tortolita district would have their CFD tax apply to their portion of the interchange and the property areas outside of the district would be charged the full impact fee for the interchange. Mr. Cassidy explained to the Council that the draft agreement is designed to ensure a distribution regarding the cost of construction of the interchange. Vice Mayor Post followed up by asking if the developer is also responsible for the costs of constructing the sewer line and are those costs recouped through the CFD or impact fees. Mr. Cassidy stated that the construction of a sewer line is not covered in the current draft as it only covers transportation. Mr. Cassidy anticipates that in the sewer service agreement the Town would provide for reimbursement to the developer. He expects that the developer would want to pay for the sewer infrastructure with CFD money and then delineate some type of mechanism to reimburse the developer for third-party hookups to the line. Alternatively, the sewer conveyance infrastructure could be incorporated as a new project into the Town's wastewater infrastructure improvement plan and paid for through third-party impact fees. Vice Mayor Post commented that there are two separate issues, one the main sewer line and two, capacity on the plant. Mr. Cassidy responded that the developer would still have to pay for capacity on the plant to the extent that they don't provide it. Vice Mayor Post asked if there are impact fee credits available for the plant. Mr. Cassidy clarified the developer is only eligible for impact fee reimbursement if they build the plant and can provide the capacity to the plant. Mayor Hone a observed that the Town did something similar to what Mr. Cassidy described with the Gladden Farms development. He reminded the Council that once other developments started hooking into the main line those impact fees were applied towards the construction debt. September 12,2017 Study Session Minutes 7 Amended Marana Regular Council Meeting 10/03/2017 Page 45 of 116 Transitioning back to the board composition, Vice Mayor Post acknowledged that he would prefer not to be the CFD board for the Villages of Tortolita. He stated that the developer will want to recoup the costs for construction and the board will max out the approved tax rate to help facilitate a faster return. Mayor Hone a disagreed stating that the Council should sit as the board because when a CFD is established you are giving an entity the right to tax citizens. He stated that an appointed board is not elected by citizens and therefore lacks any culpability regarding the tax rate. Mayor Honea further stated that another board would add unnecessary bureaucracy to the process and waste tax payer money. He noted that by keeping the CFD with the Council, then the Town's administrative officers are responsible to ensure compliance with necessary funding structures and other applicable laws. Vice Mayor Post asked what would happen if a CFD wanted to issue more debt after having met all the requirements agreed to. He wanted to know if the district could sue the Town for refusing to issue additional debt. Mr. Cafiso stated that there is no legal precedent a private developer has to force a political subdivision to incur debt. Vice Mayor Post countered that if the developer has met all the requirements and asked for reimbursement, how could the Town refuse to pay? Mr. Cafiso explained that development agreement provides clearly defined circumstances in which the CFD board agrees to issue debt based on the statute's requirements and the developer's commitment to create better developments. Mr. Cafiso stressed that the relationship between the municipality and the developer can only create a strong development that is cooperative between both groups. Council Ziegler pointed out that residents will still come to the Town for issues related to the CFD and the Council will have to handle whatever the issue is regardless of responsibility citing, as an example the issues with The Pines development. Mr. Cafiso responded that regardless of board composition, the Council must form the district first. He cautioned that as the party responsible for the formation of the district, the Town is ultimately responsible for any issues that occur within the district and can be sued by the property owners in a lawsuit. Council Member B owe n asked how many restrictions regarding the scope of the CFD the Town could impose. Mr. Cafiso replied that it is dependent on the negotiations between the Town and the developer regarding the content and scope of the final CFD development agreement. He noted that the development agreement runs with the land and should benefit the property. Mr. Cafiso also commented that even though there are no guarantees regarding rates, if the Council maintained control of the CFD it would be in a better position to control for issues related to the bond funding should any occur. Vice Mayor Post returned to the discussion of bonds and asked if the developer can use the special assessment bond money for immediate infrastructure improvements. Mr. Cassidy responded that the Red Hawk Phase I sold about $18 million dollars' worth of special assessment bonds to pay for the construction of the sewer lines and Dove Mountain Boulevard. Vice Mayor Post clarified that the special assessment bonds are a tool that can be used for immediate construction of infrastructure. Mr. Cafiso added that the benefit of general obligation bonds is that they can be used over and over again on a property, whereas special assessment bonds are a one-time shot based on the debt to value ratio determined at the time of the original financing and cannot increase. Mr. Reader also noted that homeowners need to feel good about their taxes. The general obligation bonds are based on two things, the value of the home within that September 12,2017 Study Session Minutes 8 Amended Marana Regular Council Meeting 10/03/2017 Page 46 of 116 development and the property tax rate. He explained that at the end of the day, property owners need to feel good about the infrastructure their tax dollars support. Mr. Reader explained that special assessment allocation cost applied to the property does not change even if the assessed value of the property increases over time. Council Member lie gle r asked for clarification regarding what the property owner gets in return from paying the special assessment allocation. Mr. Reader remarked that the special assessment allocated to each property pays for the infrastructure associated with the bond. Mr. Cafiso further clarified that with a general obligation bond, the property tax levied is based on the property value and also on the payment history of other property owners within the district. If a property owner does not pay the tax, then the other property owners' tax within the district will have their tax assessment increased to cover the shortfall. Conversely, a special assessment tax applied to the property is a fixed amount and independent of the payment history of other property owners or changes in assessed value of the property. Mr. Cafiso acknowledged that the assessed value of the property for a special assessment is based proportionally on the property's expected use of the infrastructure, e.g. larger lot size equals higher assessment value. Mr. Cafiso reported that the benefit of a special assessment to individual property owners is that it can be paid in full at any time unlike a general obligation bond that will continue to appear as a secondary property tax until the debt is retired. Vice Mayor Post observed that both general obligation bonds and special assessment bonds are useful tools to pay for the construction of large public infrastructure projects. Mr. Cafiso stated that he and Mr. Reader try to create an agreement that balances between the developer and the Town while also protecting the interests of the property owner. Vice Mayor Post expressed support for the use of special assessment bonds for large infrastructure projects. Mr. Cafiso reiterated the need to have a funding source upfront for construction and the special assessment bonds may not have enough value to cover the costs of construction; however, with a general obligation bond the value of the assessment grows making it a better mechanism to recoup the costs of construction over time. The special assessment bond is based on present-day dollars as opposed to general obligation bonds which is based on future day dollars. Mr. Reader indicated that it is a collaborative public/private partnership that will come together to create a financing plan that makes sense for both the Town and the developer. Mr. Davidson directed the Council's attention to the final slide of the presentation to consider the direction regarding policy changes given the information presented during this meeting. Mr. Montague explained that the current policy has a seven year timeframe for general obligation bonds with a current target tax rate of $2.50. He noted for assessment bonds, the Town currently does not have a cap other than the value of the lien. Mr. Montague stated that the Town has made a policy decision reflected in the current CFD policy not to pass the assessment bond obligation on to the ultimate homeowner. Also under current policy, the value to lien ratio is 6:1 public and 4:1 private placement with the land as is at the time of assessment and excluding the value of the improvements. Mr. Montague stated that there could be an argument to increase the maximum secondary tax rate to fund general obligation bonds, referencing other jurisdictions within the state. Another policy change could include some flexibility in length of time authorization depending on project size or some combination of term and percentage of development within the CFD. Another September 12,2017 Study Session Minutes 9 Amended Marana Regular Council Meeting 10/03/2017 Page 47 of 116 possible change could include adjusting the target tax rate by a reasonable increase as compared to other communities. Moving on to special assessment bonds, Mr. Montague stated that some policies define a cap of the total effective tax rate per lot. He also identified the possibility of making adjustments to the value to lien calculation and adjusting the value to the lien ratio to include the value of improvements within the assessment. Vice Mayor Post asked if the special assessment bond could be retired at the purchase of a home. Mr. Cafis o responded that some communities require it and noted that these liens are superior to all other debts by statute, so lenders sometimes require full payment at the property's purchase. Mr. Reader added that some master planned communities have provisions incorporated in the bond documents to allow the special assessment to be paid off quickly. Council Member Comerford asked how flexible the Town can be with setting the tax rate when developments have a disproportionate burden of infrastructure, i.e. one development is the $2.50 rate while another is at the $3.00 rate. Mr. Montague said that from a policy perspective the Town could define a target tax rate that does not exceed a particular rate. Mr. Reader confirmed that the Town could differentiate the target tax rate between CFDs, but the tax rate is partly driven by the developer. Mr. Cassidy stated that to have a policy and consistently apply it helps to level the playing field and avoid the appearance of subjectivity on the Town's part. Vice Mayor Post asked that if the Town changes its target tax rate, will it retroactively apply to the current CFDs. Mr. Cassidy responded in the negative and stated the development agreements have language defining the tax rate. Vice Mayor Post asked that if the Town uses two different funding mechanisms are the property owners charged different rates. Mr. Cassidy replied that special assessment tax is a flat amount to the property owner and does not increase as the property's assessment value increases. Mayor Hone a stated the issue with levying both a general obligation bond and a special assessment bond at the same time stacks the taxes on the property owner. Vice Mayor Post responded that by using both bond options could help meet the needs of the project. Mr. Davidson asked if the Council would lie to craft a policy that meets those needs, but also minimises the subjectivity component mentioned by Mr. Cassidy. He noted that the Town is aware of each project's unique needs, but wants to make sure the Town stays within certain ranges. Vice Mayor Post conceded that perhaps the target tax rate should be adjusted to better account for the current cost of development as the Town has applied the $2.50 target tax rate since 2004. Mr. Reader reminded the Council that general obligation bond monies are for enhanced regional public infrastructure that benefit the community and may lend itself to a higher tax rate. Vice Mayor Post observed the dollar amount required to construct an interchange is so high that it takes away funds from other public amenities and improvements and requires some adjustment to ensure the community has funds to invest a diverse array of public projects. Both Mr. Reader and Mr. Cafiso affirmed that there are many jurisdictions that use differentiated tax rates for development. September 12,2017 Study Session Minutes 10 Amended Marana Regular Council Meeting 10/03/2017 Page 48 of 116 Mr. Davidson suggested that to help manage all the variables that staff comes back with a recommendation that modernizes the numbers and takes into account some the projects coming forward. Council Member Comerford clarified that staff is asking for Council direction regarding one, the composition of CFD boards and two, creating a policy regarding the numbers. She indicated that she is ready to provide direction on the board and wants staff to present additional information for policy on the numbers. Vice Mayor Post agreed that he is ready to give direction on the board composition, but really needs more real world examples to determine and justify a policy related to the target tax rate. Specifically, he wants a better idea of the financial impact of the Villages of Tortolita project. Council Member Comerford agreed that financial obligations are complicated and need additional attention before making a decision without first knowing the estimated cost of development. Mayor Hone a remarked that there will be other CFDs beside the Villages of Tortolita and the Town needs to set a general CFD policy with the ability to modify if needed. Vice Mayor Post asked that a policy include some forethought when it comes to the large infrastructure projects. Council Member B owe n stated the revised policy needs to articulate how the Town sets its numbers, e.g. what is the basis used for the tax rate. He did express support for an assessment bond that uses a formula that calculates either an `x" amount per lot or a percentage of value because it will allow money to come to start construction. Council Member Bowen also supported the idea of incorporating a max target tax rate into the policy to provide flexibility. He did express the desire to have more information regarding the rationale for adopting a particular timeframe for the general obligation bonds. Council Member Bowen also supported the idea of allowing the homeowner the option of paying off the special assessment in one transaction. Finally, he concurred there needs some reasonable basis for the adoption of particular numbers before he is comfortable adopting a policy. Council Member Bowen suggested staff provide more detail regarding the Villages of Tortolita project to help frame the possible policy changes and adoption. Council Member Comerford moved to direct staff to create a final policy, regarding the creation of a CFD board comprising the Council plus two appointments as defined by state statute,for consideration and approval at a future council meeting. Vice Mayor Post provided the second motion. Passed 6-0. Mr. Cassidy asked the Council if they had any specific questions regarding the information submitted in the staff report for item D3. The Council did not have any specific questions regarding the staff report. D3 Relating to Strategic Planning; discussion, consideration, and direction regarding the revised Marana Strategic Plan. Mr. Davidson started his presentation with a brief review of the Town's history of strategic plans. He noted that the plan's first adoption occurred in 2008 and the Town has revised it roughly every two years. Mr. Davidson presented a visual animation of the Strategic Plan IV's proposed on-line appearance and provided the Council a draft copy of the revised plan. He noted September 12,2017 Study Session Minutes 11 Amended Marana Regular Council Meeting 10/03/2017 Page 49 of 116 that the draft includes many items identified during the Strategic Plan study sessions conducted early this year and also incorporated citizen feedback from an on-line survey. Mr. Davidson asked the Council to review the draft document and provide feedback in the weeks to come. He reported that the five focus areas remained the same, but the principle statements were revised to reflect current process. The revision also includes several on-going initiatives rolled over from Strategic Plan III. Mr. Davidson stated overall that it is good strategic plan and it will keep moving Marana. forward. The Council will consider the final document at an October council meeting. 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. 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. Council Member McGorray motioned to adjourn at 7:52 p.m. with a second by Council Member Comerford. Passed 6-0. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the study session/presentation of the Marana Town Council meeting held on September 12, 2017. I further certify that a quorum was present. Hilary H. Hiser, Deputy Town Clerk- September lerkSeptember 12,2017 Study Session Minutes 12 Amended Marana Regular Council Meeting 10/03/2017 Page 50 of 116 MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona. 85653 Council Chambers, September 19, 2017, at or after 7:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member M IN TUES CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 7:00 p.m. Deputy Town Clerk Hilary H. His e r called the roll Council Member M cGorray was excused; there was a quorum of six council members. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Vice Mayor Post moved to approve the agenda, with a second by Council Member Kai. Passed 6-0. CALL TO THE PUBLIC. No speakers were present. PROCLAMATIONS P1 Proclaiming September 25 - October 1, 2017 Diaper Need Awareness Week (Jocelyn C. Bronson). The full proclamation was read into the record by Deputy Town Clerk Hilary His e r. P2 Proclaiming September 17 -- September 23, 2017 Constitution Week (Jocelyn C. Bronson) The full proclamation was read into the record by Deputy Town Clerk Hilary His e r. Mayor Honea presented the proclamation to Debra Kielley of the Daughters of the American Revolution. Ms. Kielley briefly addressed the Council, thanking the Mayor and Council for September 19,2017 Regular Council Meeting Minutes 1 Amended Marana Regular Council Meeting 10/03/2017 Page 51 of 116 recognizing Constitution Week. She said this week is designed to encourage citizens to read and learn about the Constitution as it is a foundational document for our society. MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. No reports. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. No report. PRESENTATIONS CONSENT AGENDA. Council Member Bowen moved to approve, with a second by Vice Mayor Post. Passed 6-0. C1 Resolution No. 2017-088: Relating to Development; approving a preliminary plat for Twin Peaks Oasis Lots 1-74, Block "1" and Common Areas "A", `B", "C", and "D" located at the northeast corner of Twin Peaks Road and Oasis Road (Cynthia Ross) C2 Ordinance No. 2017.017 Relating to Development; revising Marana Standard Detail 720- 1 for pavement striping for turn lanes; and establishing an effective date (Keith Brann) Resolution No. 2017-089: Relating to Development; declaring as a public record filed with the Town Clerk the amendments adopted by Ordinance No. 2017.017, revising Marana Standard Detail 720-1 for pavement striping for turn lanes (Keith Brann) C3 Approval of September 5, 2017 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 Mark A. Tkach on behalf of Harley-Davidson for RideNow/CAG Charitable Foundation to be held on October 7, 2017 (Jocelyn C. Bronson). Presented by Deputy Town Clerk Hiser, who noted that there were no issues with the application. Staff recommended approval. Motion to approve by Council Member Kai, second by Council Member Bowen. Passed 6-0. L2 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 Marana Heritage Conservancy for the Cotton Festival to be held on October 21, 2017 (Jocelyn C. Bronson). Presented by Deputy Town Clerk Hiser, who noted that there were no issues with the application. Staff recommended approval Motion to approve by Council Member Ziegler, second by Vice Mayor Post. Passed 6-0. BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al Resolution No. 2017-090: Relating to Development; adopting the 2017 land use assumptions, the 2017 streets facilities infrastructure improvements plan, the 2017 parks September 19,2017 Regular Council Meeting Minutes 2 Amended Marana Regular Council Meeting 10/03/2017 Page 52 of 116 infrastructure improvement plan, the 2017 water infrastructure improvement plan, and the 2017 sewer infrastructure improvement plan supporting development impact fees for streets, parks, water, and sewer (Keith Brann, John Kmiec). Keith Brann, Town Engineer, started the presentation by noting that this is the Council's third hearing of this item with previous presentations at a study session and a public hearing. Since that time, the Town has received various comments, most notably from the Southern Arizona. Home Builders Association (SAHBA) relating to the streets and parks fees. Mr. Brann indicated that SAHBA's primary questions related to why the Town used the 2.7 per capita EDU figure for population growth rather than the 2.45 figure. He explained to the Council that the 2.7 figure is based off of the 2010 U.S. Census. Mr. Brann reported another question raised by SAHBA related to the level of service on the streets fee. He clarified that the stipulation to maintain a "D" level of service or better is meant to keep those roads at a level of service consistent with projected growth. SAHBA asked about how the offsets for the construction sales tax were divided between the streets fee and parks fee. Mr. Brann stated that Town used approximately $525 last time and will use a figure very close to that this time. Also, he explained that some subdivisions don't pay a parks fee and some subdivisions don't pay a road fee. The rational for this difference is to ensure the Town tailors the parks and streets fee in a balanced way. Finally, Mr. Brann told the Council that SAHBA also questioned the Town's method of calculating the construction sales tax credit as applied to streets and parks. SAHBA calculated an overall 94 percent construction sales tax generated from single family residences and therefore should be applied to residential developments completely. However, Mr. Brann stated in staffs opinion that method of calculation fails to account for impact of EDU level and relies only on a si nple one residence calculation. He further explained that the sales tax construction tax accounts for estimated revenue generated by an individual unit. Mr. Brann noted that the Town uses different construction tax credits for homes, apartment complexes, and commercial buildings which are based on the International Code Council (ICC) cost per square foot, a value updated twice a year. He stated this is the same calculation method used by the Building department to determine the permit cost of residence. Mr. Brann reported the Town responded to SAHBA's concerns but as they were not material questions there were no changes made to the parks and streets IIP at this time. John Kmiec, Water Director, transitioned to a review of SAHBA's two main concerns regarding the wet utility. The first concern was related to the EDU counts used for water and sewer. Mr. Kmiec reported there was some confusion from SAHBA as to why the Water Department's numbers didn't equal the Town's projected 10-year growth. He reminded SAHBA that Marana. Water is only one of several water utilities within the Town, therefore the department's numbers will only equal a proportional percentage of projected growth not a total percentage of growth. The other item of concern from SAHBA related to the water resources and sewer nprovement plan for the Town's current facility. Mr. Kmiec clarified what fees current customers are charged in regards to the funds allocation for the plant's expansion. He read the upgrade language from Section 8.2 in the sewer impact fee and noted that the water resources portion is similar in the water resources fee language. Mr. Kmiec reported there is a $3.2M contribution from current customers to lower the debt servicing for the plant's expansion. September 19,2017 Regular Council Meeting Minutes 3 Amended Marana Regular Council Meeting 10/03/2017 Page 53 of 116 Vice Mayor Post asked why we charge a construction sales tax credit and then give credit for it. Mr. Brann responded that the state law for impact fees requires that if you collect revenues that are used for capital construction similar to what is in the improvement plan, you have to give a credit for those similar uses so that you are not double charging. The state requires that you give a portion of that credit above and beyond your retail sales tax. So there is a 4 percent construction sales tax and currently a (temporary) 2 1/2 percent sales tax, and for the life of the impact fee program of 10 years, we are going to revert back to 2 percent sales tax. We have other revenues that are generated by growth that come into question from time to time such as HURF revenue, but HURF revenue is used only for maintenance, not for capital construction. Construction sales tax is used for capital projects, either for improvements or for equipment. Mr. Brann closed with a brief review of the schedule. Staff is gearing up to publish the draft fees and the fee reports this week or next, and we are looking to come back to Council in either late October or early November for the first public hearing of that round of the impact fee approval process. Motion to approve by Council Member Comerford, second by Council Member Bowen. Passed 6-0. A2 Resolution No. 2017-091: Relating to Administration; approving the transfer of up to $20,000 in budgeted expenditure authority from the General Fund contingency line item in the fiscal year 2017-2018 budget to the General Fund outside agencies account to assist in funding the Regional Municipalities Veterans Treatment Court (Gilbert Davidson). Town Manager Gilbert Davidson noted that in 2012-2013 the Town entered into an agreement to p artic ip ate in the Veterans Treatment Court which provides specialized treatment and services for veterans charged with misdemeanor offenses. At the time, there were no costs associated with the participation because the City of Tucson secured an outside grant for the specialty court's creation and operations. However, the funding situation has changed and the City of Tucson is asking participating jurisdictions to contribute funds for the continued operation of the court. Mr. Davidson indicated that the original request was $75K and came to the Town just as staff concluded the previous budget process at the end of the fiscal year. He explained that this is a program the Town can support and the Town had indicated it would try to work with the court to support the operations with a number that fit into budget capacity. Mr. Davidson noted that after reviewing the historic number of cases the Town has deferred to the veterans court, there have been 26 or 27 referrals to the specialty court since 2013. Staff also compared the Town's overall population to the Pima. County's overall 1 million and concluded that a contribution of $20k was an appropriate amount to contribute. Mr. Davidson said of course, the Council can increase or decrease the suggested amount. Council Member Kai noted what he has heard other jurisdictions are committing, and he would like to look at the possibility of revising the amount each year depending on the benchmarks so that our commitment equals that of Oro Valley in four years. Mayor Hone a noted that he has talked to Mayor Rothschild on this subject many times. While the Mayor is a veteran and is supportive of veteran services, he believes that the original $75K was disproportional to the number of people we send to the court, and the figure presented tonight was developed to meet the actual number. Council Member Kai agreed that $75K was too much to begin with, but September 19,2017 Regular Council Meeting Minutes 4 Amended Marana Regular Council Meeting 10/03/2017 Page 54 of 116 looking to pay it over tone with the commitment to meet certain benchmarks many be more realistic. Council Member Comerford noted that she has been actively involved with the homeless veteran programs, and the veterans she works with won't go to that court. They don't lie it or use it and think it's a huge waste of funds. They go to civil court instead. So it's with her current experience with a certain population, that she believes $20K is very gracious for a program that's not working for them. Council Member Bowen asked for clarification from Council Member Kai that we give $20K but that we review it every year of raising it or continuing it. Council Member Kai noted that it was to continue it. Council Member Bowen then asked Mr. Davidson if the City of Tucson was eligible to receive grant money, would Marana be eligible to receive grant money to fund our portion. Mr. Davidson noted that Tucson established a whole program. The key for the grant funding was that the presiding judge that took this on as an initiative worked with some social service agencies and support groups throughout the Tucson area and developed some key alliances to help get veterans into different programs. Our challenge would be that we don't have that network yet. He doesn't know where the funding was coming from or why that changed, but that's why all the jurisdictions are being asked. He believes at some point that if the "ask" gets too high, we could probably fund internally programs that would help our local veterans without having to contribute to another entity. Council Member Kai moved to set up a fund for $20,000 for the Veterans Treatment Court and ask staff to bring it to Council for the next three years with benchmarks so we can make a decision on continuing the program. Second by Vice Mayor Post. Motion passed 5-1 with Council Member Comerford voting nay. A3 Resolution No. 2017-092: Relating to Municipal Court; reappointing Laine Sklar as Marana. Town Magistrate for a two-year term beginning October 1, 2017; approving and authorizing the Mayor to execute an employment agreement between the Town of Marana. and Laine Sklar (Gilbert Davidson). Mr. Davidson noted that unless any council member has specific questions related to the renewal of Judge Sklar's contract, he is recommending approval. The court has been operating very well, and some of the council members had a chance to meet individually with the Judge and to get some feedback on some of the changes that have been made. Motion to approve the resolution as presented by Council Member Comerford, second by Council Member Bowen. Passed 6-0. ITEMS FOR DISCUSSION/POSSIBLE ACTION DI 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) 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. September 19,2017 Regular Council Meeting Minutes 5 Amended Marana Regular Council Meeting 10/03/2017 Page 55 of 116 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. Motion to adjourn at 7:23 p.m. by Vice Mayor Post, second by Council Member Comerford. Passed 6-0. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana. Town Council meeting held on September 19, 2017. I further certify that a quorum was present. Hilary H. Hiser, Deputy Town Clerk- September lerkSeptember 19,2017 Regular Council Meeting Minutes 6 Amended Marana Regular Council Meeting 10/03/2017 Page 56 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting L1 Meeting Date: 10/03/2017 To: Mayor and Council Submitted For: Jocelyn C. Bronson, Town Clerk From: Suzanne Sutherland, Assistant to the Town Clerk Date: October 3, 2017 Subject: Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a new license series 12 restaurant liquor license application submitted by Andrea Dahlman Lewkowitz on behalf of MOD Pizza, located at 3780 W. Ina Road, Tucson, Arizona 85741 (Jocelyn C. Bronson) Discussion: This application is for a series 12 restaurant liquor license at MOD Pizza, located at 3780 W. Ina Road, Tucson, Arizona 85741. Pursuant to state law, the application was posted at the premises where the business is to be conducted. The posted notice provided that residents within a one mile radius from the premises may file written arguments in favor of or opposed to the issuance of the license with the Town Clerk's Office within 20 days of the posting. Any written arguments received by the Clerk's Office for or against the proposed liquor license are attached to this item and will be submitted to the Department of Liquor Licenses and Control (DLLC). Town staff has reviewed this application to determine whether the applicant is in compliance with zoning, building and other legal requirements for the business. Additionally, the Marana Police Department has conducted a local background check. The Town Council must enter an order recommending approval or disapproval of the application within 60 days after filing of the application. Pursuant to state statute, a license will only be issued after a satisfactory showing of the capability, qualifications and reliability of the applicant and "in all proceedings before the town council, the applicant bears the burden of showing that the public convenience requires and that the best interests of the community will be substantially served by the issuance of a license." Amended Marana Regular Council Meeting 10/03/2017 Page 57 of 116 If the Council's recommendation is for disapproval, the order must include an attachment stating the specific reasons for the recommendation of disapproval and including a summary of the testimony or other evidence supporting the recommendation. If the Council enters an order recommending approval of the application, or makes no recommendation, then no hearing before the Arizona state liquor board will take place, unless the director of the DLLC, the liquor board or a resident within a one mile radius from the premises requests a hearing. If the Council enters an order recommending disapproval of the application, or if the director, board or a resident within a one mile radius from the premises requests a hearing, then the state board will hold a hearing regarding the application. At the hearing, the state board will consider all evidence and testimony in favor of or opposed to the granting of the license. The decision of the board to either grant or deny an application will normally take place within 105 days after the application has been filed, unless the director of the DLLC deems it necessary to extend the time period. Staff Recommendation: Staff recommends that an order recommending approval be submitted to the DLLC for this liquor license application. Suggested Motion: OPTION 1: I move to adopt and submit to the DLLC an order recommending approval of a new series 12 restaurant liquor license application submitted by Andrea Dahlman Lewkowitz on behalf MOD Pizza, located at 3780 W. Ina Road, Tucson, Arizona 85741. OPTION 2: I move to adopt and submit to the DLLC an order recommending disapproval of a new series 12 restaurant liquor license application submitted by Andrea Dahlman Lewkowitz on behalf MOD Pizza, located at 3780 W. Ina Road, Tucson, Arizona 85741. Attachments Application Affidavit of Posting Local Governing Board Recommendation Descriptions of Common Types of Liquor Licenses Amended Marana Regular Council Meeting 10/03/2017 Page 58 of 116 DLLC USE ONLY License A izona \ pa� °�of Liquor Licenses and Control 800 W Washington 5th Floor Date A ted: P'hoeni , AZ 85007- 34 co www.azliquor.gov 110 (602) 542-5141 ryl Y_�f Application for Liquor License Type or Print wilth Black In APPLICATION PEE AND INTERIM PERMIT EEE IE APPLICABLE ARE NOT REFUNDABLE A service fee of 'w I be char ed for all dishonored r h!2cks(A.R. . -6852) ��. SECTION 1 Type of License SECTION 2 Type of Ownership r [:11T.W.R.O.S. DInterim Parrnit 01ndividual ria M,New License ❑Partnership : OPerson Transfer Corporatia n ❑Location Tra nst r(series 6,7 and ) EILirnited Lia I ility Co [:3probate/ Will Assignment/Divorce Decree (No Fees) Elclub 71 Seasonal OGovernment OTrust 71T�be Ei0ther fExplalin) SECTION 3 Type at license Ej Add Sampling Pnivilea for,Sees 9 and 10 only (Complete Sampling Privilege a ppli cation) A.R.S,§4-20 6.01( ), (H), (1) & (L) El Add Growler pri'vil e (restaurant,series 12,license only. 300-foot restriction a a pI ie ) A.R.S.§4- o (A) & (B) 1.T of License restaurant, bar etc.): IE t2 i f issued):LICENSE SECTION 4,Applicants 1.Agent's Marne: LE� WIT AIA IAILMA wit Fftst AMddle 2+Applicant/Licensee area: MOD SUPER EAST PIZZA,LLC (Ownership name far type of ownership checked on section 1) 3_ Business N oma (Doing Business As-DBA): MOD PIZZA 4_ Business Location Address: 3780W.INAROAD TUCSON AZ 85741 PIMA (Do not use PO Box) Street R ditty $tote Zip Code County 5. a i I i n A d ra s s: 2600 I .CENTRAL AVENUE,SUITE 1775 PHOENIX AZ 8.5004 (All c erre sp an d en c e will be mailed to this address) Street city State Zip Code . Business Phone: PFNDING _ Daytime Contact Phone: (602)200-7222 . E aFr Address: ANDR A@LEW.LAW.CO _ Is the Business located within the incorporated limits of the above city or town?ElyesEl No If you chocked no,in what City,Town,County or TNbal/Indian Communityis this business located? '� � A 4 A FDiapartment Use Only Fs: o1 Uy Application interim Permit Ct inspection Finger Pint# Total of All Fees Is Arizona tatement of itizenship Alien Status for tote Benefits complete? s O to 141%�6ndede 1 f 5 Marana Regular Council Meeting 10/03/2017 Page 59 of 116 individuals requirin- ACOA acom modaticns please call(602)542-9027 SECTION 5 Background Check EACH PERSON LISTED MUST SUBMIT A QUESTIONNAIRE,FINGERPRINT CARD ALONG WITH $22,PROCESSING FEE PER CARD. 1,If the applicant is an entity, not an individual,answer questions I a-b. a) Date Incorporated/Organized: 05/01/2008 State where Incorporated/Organized: DELAWARE b) AZ Corporation or AZ L.L,C, File No.- R-1899417-3 Date authorized to do busIness in AZ 02/2S/2014 2, List any individual or entity that own a beneficial interest of 10%or more and/or controls the license. if the applicantis owned by another entity, attach an organizational chart showsrig the ownership structure. Attach additional sheets as needed to disclose any controlling person, member, shareholder or g eneral partner who owns a beneficial interest of 10 %or more of the license. Last First Middle Me TcOwned Mailsg Address city State zip - SEE ATTACHED ................................................. (Attach addition al sheet if n e c essary) SECnON 6 Interim Permit I u intend to operate business while your application i.s pending you will need an interim permit pursuant to A.R:.S.§4-203.01 For ap val of an 1 nteri m permit, * Ther u be a valid license of the same saves issued to the current location you are applying for OR 1P A Hotel/ of license is being replaced with a restaurant 11cense pursuant to:A.R.S.§4-203.01 (A) 1. Enter license number rently at the location: 0 2. Is the license currently in use Yes[3 No If no, how long has it been out of use? 1, (Signoture) declare that I am the CURRENT OWNER,AGENT, OR CONTROLLING PERSON on the stated licens rid location. Attach a copy of the license curr ly Issued at this location to this application. N 0 LAI State of Arizona County of On this Day Day of Month 20 Yaw before me personally opoppeared Nom e of Document Ugner) Whose identify was proven to me on the basis of safisfactory evidence to be the person who h r she claims to be and acknowledged that he or she signed the above/attached document. (Affix Seall Above) SIgnature of NOTARY PUB LIC 7 Probate, Receiver, Bankruptcy Trustee,Assignment,or Divorce Decree of an existing liquor license ARS§4-204 EACH PERS O I . I MUST SUBMIT A QUESTIONNAIRE,, FINGERPRINT CARD ALONG WITH$22.PROCESSING FEE PER CARD. I.Curre nt Licensee's Name: (Exactly as it appears on the ficense) Lost First MiddIlie 2.Assignee's Name: last First Middle License Number- ATTACH A COPY OF THE DOCUMENT THAT SPECIFICALLY ASSIGNS THE LIQUOR LICENSE TO GINEET 2/24/201 page,2 of 5 Amended Marana Regular Council,Me i j DA accommodotions olecse call(602)542-902 7 Page 60 of 116 Amended Marano Regular Council Meeting 1003/201 7 Page 61 of 116 SECTION 8 5 or Gibes,Towns or Counties only) 1. Government Entity: 4 Person/Dei n e: Lost First Diddle o Mme on c# one# SEPARATE LICENSE MUST BE OBTAINED ED POR EACH PREMISES FROAA WHICH H SPIRITUOUS LIQUOR IS SERVED. SECTION ❑Person to Person-Current Licensee Information ARS -203(0)r(D)r(G) (Bar and Uquor Stores only-Series 06,07 and 09) 1.Lic se : 2.Current Ag t Name: _ -- Lost Hirst Middle 3.Current Licensee Na e; (Exactly as it appears on the license) 4.Current Business ame: (Exactly os It appears on the(cense) M Current Dalyti rn e Phone: � Pri[mary Email Address: . 6.Does current licensee intend to operate the bu in s while this application is pending? ❑Yes E]No 7.i authorize the transfer of this license t the applicant. � _ S Ig n a to re or Ag ent or I ndividuaN as ntrolli n g p erson NOTARY State of Arizona � County of On this Day of 20 before me oersonally oppeo red Lay Month Year (Print Mame bument Whose'identity was proven to rhe on the basis of satisfactory evidence to be the person who he orsh laimstobeand acknowledged that he or she signed the above/attached document. SlgnatUft of NOTARY PUBLIC A Inc Seo AIv ) E TI o N 10 Proxim ity to Church or School - Oue do res to be c ompleted by 6,7, 9j 10 and 12G applicants. .R.S, 4-207, (A) and (B) state that no retailer I s license shall be issued for any pre ses which are at the time the license application is received by the d'recford within three hundred (300) horizontal feet of a church, within three hundred (300) honzontart feet of a public or private school building with kindergarten pro ro rns or grades one (1) through (12) or within three hundred (300) horizontal feet t' a fenced recreational area adjacent to such school building, The ob ve paragraph DOES NOT apply to: e)Government license l,'A. . , 4-205.03 Series 5 a)l estcuran*s flet de not sell grawaer5(A. '. . 4-205.02)Series 12 Q flaying area of a goff course(A,R.S.§4-207(B (5�� b� Hotelftnotel license[A.'l .S. 4-205,0'),ernes 11 )° heleseler/Disiributor Series 4 Mi robrewe (A.R. .§4-205.08)Series 3 h)Farrn Winery Series 13 d�Croft D sf-1 I e ry(A.R.S.§4-205,1 )Series 18 I)Producer Series 1 2/2 4/)r.17 page 3 of Amended Marano Regular Council MTv,eting 1 0/03/2017 Page 62 of 116 �� is s requiring ASA accommodations lecs call(602)542-90)-'1' 0 0 -Section 10 continued- NSE 1. Distance to nearest School, IA, RIES 12 Name of Schoolp (if le-ss than one(1)mile note footage) Address: 2. Distance to nearest Church, 2N.-.,'A- ,-SERIF-S 12 Name of Church: (if less than one(1)mile note footage) Address: SECTION 11 Business Financials A.R.S.§4-202(F) 1. 1 am the: ®Tenant:a person who holds,the lease of o property;a lessee. 0 Sub-tenant:a person who holds a teose which was given to another person(tenant)for all or part of a property. F]Owner El Purchaser El management company 2.If the premises is leased give lessors: Name, RMAF Il LOC,LLC-c/o Red Mcmntain Group,Inc. Address* 1234 E.17TH STREET SANTA ANA CA 92701 Street city state Zip 3.What is the penalty If the lease is not fulfilled? $-TERMINATION or Other: MONETARY PFNA-LITIFS 4.Total money borrowed for the Business not including lease? $ 0,00 Please List Lenders/People you owe money to for business. Los First Middle Arn-ount Owed Malling.Address city staie zip (Attach addltlonal sheet If necessary) 5. Has a license or a transfer license for the premises on this application been denied by the state within the post year? El Yes E]No If yes,attach explanation. 6. Does any spirituous liquor manufacturer wholesaler,or employee have an interest in your buslness� El Yes F1 No If yes,attach explanation. SECTION 12 Diagram of Premises Check ALL boxes that apply to your business: El Walk-up or drive-through windows patio: ® Contiguous ❑ Iran-contiguou s within 30 feet 1. Is your licensed pre rnises now closed due to constructin,renovation or redesign or rebuild? 2 2 El Yes w No :f yes, hat is your estimated cornpleti�on date? 1 __/ 07 017 Please attach a diagram of the premises which clearly show only the areas where spirituous liquor will be sold, slerved, consumed, dispensed, possessed or stored. Include all entrances, exits, interior walls, bar areas, din[ng areas, dance floor, stage, game room and the kitchen. DO NOT INCLUDE park[ng lots, livinng quarters or areas where business Is not conducted under this Liquor license. When completing your premises diagram, please 'identify which orientation is North- 21241201.'i pcge 4 of 5 Amended Marana Regular Council accommodctions please call(602)542-9027 Page 63 of 116 i 4 ■ oft ice_ k .. \7M; Its, 111111 r gone grow■11Do a 0 an a 0 so al an me _ � �� ■■� Irr a � fill � C, "-a JIM' ,4 I MEOW a FIT m ■IMMNWWIWMWWII +�i� is qp • �. � w.a.• i k � 1 � IL.A ma w 1 0 0 -Se',--f i o n '2 continued on next page- 2.Pro:vid e the square f oota ge or outside dimensions o�t he licensed premises. Please d o not linclud e no n-11ce used areas such as parking lots, living quarters,etc. 3.As stated in A.P.S. -207,01 (5), 1 understandit is my responsIbIll-fty to notify the. Department of Liquor Licenses and Control when there are changes to the service areas or the square footage of the 1'censed premises, either by increase or decrease. AppllaWt-s Intfials RESTAURANTS AND HOTELS/MOTELS ONLY (IMPORTANT' NOTE: A site inspection must be conducted prior to activation of the license. The fee of $50.00 will be due and payable upon submitting this application.) 4a. Provide a detailed drawing of the kitchen and dining areas, including the locations of all kitchen equipment and dining furniture,these,are required as part of the diagram.A.R.S.§4-205.02(C) 4b. Provide a restaurant opera-tion plan. SECTION 13 SIGN AIVU-RJR BLOCK 1,(Signature) hereby declare that I am the Owner/Agent filing this application, I ha rQqad this docu ent and verify the content and all statements are true, correct and complete,to the best of my knowledg N-OTARY State of Arizona County of ARRC PA On this C)cy of AUGUST 20 17 before me personally appeared ANDREA DAHLMAN LEWKOWITZ Day Month Yeor (Print Name of Document S4pnef) Whose id,enfify was proven to me on the basis of sotisfactory evidence to be the person who he cr she claims to be and acknowledged that he or she signed the above/attached document. A"L .-Iolf OtA ftia AAMM Signature of NOT Y Vf 20M (Affix Seol Above) A.R.S. 1-1030. invalidity of rules not.made according to this chanter: prohibited agency action; prohibited acts by state employees:enforcement' notice B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specificcilly aufho6zed by statufe, rule or state tri ol gaming compac-t. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that generol grant of authority that specifically authorizes the requirement or condition. D. THIS SECTION MAY BE ENFORCED IN A PRIVATE CIVIL ACTION AND RELIEF MAY BE AWARDED AGAINST THE STATE. THE COURT MAY AWARD REASONABLE ATTORNEY FEES, DAMAGES AND ALL FEES ASSOCIATED WITH THE LICENSE APPLICATION TO A PARTY THAT PR,EVAILS,INA N ACTJON AGAINST THE STATE FOR A VIOLATION OF THIS SECTION. E- A STATE EMPLOYEE MAY NOT INTENTIONALLY OR KNOWINGLY VIOLATE THIS SECTION. A VIOLATION OF THIS SECTION IS CAUSE FOR DISCIPLINARY ACTION OR DISMISSAL PURSUANT TO THE AGENCY'S ADOPTED PERSONNEL POLICY. F. THIS SECTION DOES NOT ABROGATE THE IMMUNITY PROVIDED BY SECTION 12-820.01 OR 12-820M, 2/2A. 1-7 page 5 of 5 emended Marano Regular Council IM tiqg, - Page 65 of 116 )0/03/2017 ;f�-,quirnd ADA accommodations please call(602)542-9027 Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor `* Phoenix, AZ 85007-2934 , x www.azliquor.gov (602) 542-5141 o. AFFIDAVIT OF POSTING September 5 2017 1, Date of Poston Date of Postln Removal. � Posting: g Applicant's Name: Lewkowitz Andrea Dahlman Lost First Middle Business Address: 3780 W. Ina Road Tucson 85741 Street City Zip License #: X2104532 1 hereby certify that pursuant to A.R.S. 4-201, 1 posted notice in a conspicuous place on the premises proposed to be licensed by the above applicant and said notice was posted for at least twenty (20) days. Elton BJr,. Housing Specialist 520-990-2498 Print Name of City/County Official Title Phone Number Signature Date Signed Return this affidavit with your recommendations (i.e., Minutes of Meeting, Verbatim, etc.) or any other related documents. If you have any questions please call (602) 542-5141 and ask for the Licensing Division. 11/24/2015 Page 1. of 1. Amended Marana Regular CoulRi81"IW%MOPtA accommodations please call(602)542-9027 Page 66 of 116 Arizona Department of Liquor Licenses and Control a 800 W Washington 5th Floor d Phoenix, AZ 85007-2934 :.:f. www.azliquor.gov ,19, + C,ON (602) 141 Rr�� � 5 42-5 Local Governing Body Recommendation A.R.S. § 4-201(C) 1. City or Town of.. Marana Liquor License Application #.. 12104532 (Circle one) (Arizona application#) Pima LL2017-16 2. County of.. City/Town/County #. 3. If licensed establishment will operate within an "entertainment district" as described in A.R.S. §4-207(D)(2), (Name of entertainment district) (Date of resolution to create the entertainment district) A boundary map of entertainment district must be attached. 4. The Marana Town Council at a Regular meeting held on the 3rd of (Governing body) (Regular or special) (Day) October 2017 considered the application of Andrea Dahlman Lewkowitz (Month) (Year) (Name of applicant) for a license to sellspirituous liquor at the premises described in application 12104532 , (Arizona liquor license application#) for the license series #: typeas provided b Series #12 Restaurant 4-201. Y A.R.S § (i.e.:series#10:beer&wine store) ORDER OF APPROVAL/DISAPPROVAL IT IS THEREFORE ORDERED that the license APPLICATION OF Andrea Dahlman Lewkowitz (Name of applicant) to sell spirituous liquor of the class and in the manner designated in the application, is hereby recommended for (Approval,disapproval,or no recommendation) TRANSMISSION OF ORDER TO STATE IT IS FURTHER ORDERED that a certified copy of this order be immediately transmitted to the State Department of Liquor, License Division, 800 W Washington, 5th Floor, Phoenix, Arizona. Dated at Marana, Arizona on (Location) (Day) (Month) (Year) Jocelyn C. Bronson (Printed name of city,town or county clerk) (Signature of city,town or county clerk) 9/29/2015 Amended Marana Regular Council Meeting 10/03/2017 page 1 of 1 Page 67 of 116 Individuals requiring ADA accommodations please call (602)542-9027 Department of Liquor Licenses and Control Descriptions of Common Types of Liquor Licenses Series 6 Bar The bar (series 6) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- & off-sale retail privileges. This license allows a bar retailer to sell and serve all types of spirituous liquors,primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off-sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4-206.01.F. states that after January 1, 2011, the off-sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Payment must be made no later than the time of delivery. Off-sale ("To Go") package sales of spirituous liquor can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the ones provided for the bar. A hotel or motel with a Series 6 license may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty-one (21) years of age. Access to the minibar is by a key or magnetic card device and not furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 7 Beer and Wine Bar The beer and wine bar (series 7) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- &off-sale retail privileges. This license allows a beer and wine bar retailer to sell and serve beer and wine (no other spirituous liquors), primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off- sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4-206.01.F. states that after January 1, 2011, the off- sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Off-sale ("To Go") package sales can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the one provided for the bar. Payment must be made no later than the time of delivery. {00018233.DOC/21 Amended Marana Regular Council Meeting 10/03/2017 Page 68 of 116 Department of Liquor Licenses and Control Descriptions of Common Types of Liquor Licenses Series 9 Liquor Store The liquor store (series 9) license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows a spirituous liquor store retailer to sell all types of spirituous liquors, only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 9 (liquor store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 10 Beer and Wine Store This non-transferable, off-sale retail privileges liquor license allows a retail store to sell beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 10 (beer and wine store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 11 Hotel/Motel This non-transferable, on-sale retail privileges liquor license allows the holder of a hotel/motel license to sell and serve all types of spirituous liquor solely for consumption on the premises of a hotel or motel that has a restaurant where food is served on the premises. The restaurant on the licensed premises must derive at least forty percent (40%) of its gross revenue from the sale of food. The holder of this license may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty-one (21) years of age. Access to the minibar is provided by a key or magnetic card device and may not be furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 12 Restaurant This non-transferable, on-sale retail privileges liquor license allows the holder of a restaurant license to sell and serve all types of spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food. Failure to meet the 40% food requirement may result in revocation of the license. {00018233.DOC/21 Amended Marana Regular Council Meeting 10/03/2017 Page 69 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting L2 Meeting Date: 10/03/2017 To: Mayor and Council Submitted For: Jocelyn C. Bronson, Town Clerk From: Suzanne Sutherland, Assistant to the Town Clerk Date: October 3, 2017 Subject: Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a special event liquor license application submitted by Virgilio UoJo" Tabo, Jr. on behalf of St. Christopher Roman Catholic Church for Parish Fall Festival to be held on November 4, 2017 (Jocelyn C. Bronson) Discussion: This application is for a special event liquor license on behalf of St. Christopher Roman Catholic Church for Parish Fall Festival to be held on November 4, 2017. The applicant has also applied for a special event permit from the town, pursuant to Chapter 10-6 of the Marana Town Code. A special event liquor license is a temporary, non-transferable, on-sale retail privileges liquor license that allows a non-profit or political organization to sell and serve spirituous liquor for consumption only on the premises where the spirituous liquor is sold and only for the period authorized on the license. Qualifying organizations will be granted a special event license for no more than ten (10) days in a calendar year. Events must be held on consecutive days and at the same location or additional licenses will be required. The license is automatically terminated upon closing of the last day of the event or the expiration of the license, whichever occurs first. The qualified organization must receive at least twenty-five percent (25%) of the gross revenues of the special events. Pursuant to state law, a person desiring a special event liquor license must request a special event application from the Department of Liquor Licenses and Control (DLLC). The applicant then must file the application with the town for events occurring within the town's limits. A new applicant for an initial special event license may be required to demonstrate that it is qualified, capable, and reliable to conduct a special event. The town may then recommend approval or disapproval of the special event liquor license. Amended Marana Regular Council Meeting 10/03/2017 Page 70 of 116 If the special event liquor license application is approved by the Town Council, and the event meets the requirements for granting the license, the director of the DLLC will issue a special event liquor license to the qualifying organization. If the application is disapproved by the Town Council, the DLLC will normally not consider the application. Staff Recommendation: Staff recommends approval of this special event liquor license application. Suggested Motion: OPTION 1: I move to submit to the DLLC a recommendation of approval of the special event liquor license application submitted by Virgilio "JoJo" Tabo, Jr. on behalf of St. Christopher Catholic Church for Parish Fall Festival. OPTION 2: I move to disapprove the special event liquor license application submitted by Virgilio "JoJo" Tabo, Jr. on behalf of St. Christopher Catholic Church for Parish Fall Festival. Attachments St. Christopher Catholic Church Parish Fall Festival Amended Marana Regular Council Meeting 10/03/2017 Page 71 of 116 FOR DLLC USE ONLY LI Y Event Date(s): Arizona Department of Liquor Licenses and Control ► ,.►' 800 W Washington 5th Floor Event time start/end: Phoenix, AZ 85007-2934 Qco ,o www.azliquor.gov rirzott (602) 542-5141 License: APPLICATION FOR SPECIAL EVENT LICENSE Fee=$25.00 per day for 1-l0 days(consecutive) Cash Checks or Money Carders Only A service fee of$25.00 will be charged for all dishonored checks(A.R.S §44-6852) IMPORTANT INFORMATION:This document must be fully completed or it will be returned. The Department of liquor licenses and Control must receive this application ten (10) business days prior to the event. If the special event will be held at a location without a permanent liquor license or if the event will be on any portion of a location that is not covered by the existing liquor license, this application must be approved by the local government before submission to the Department of Liquor licenses and Control(see Section 12). SECTION 1 Name of or ganiza#•ion: Name of Licensed Contractor only (if any): Non-Profit/IRS Tax Exempt Number: ' Event Location: Event Address: ,�g SFCTI!QN 4 Applicant must be a member of the qualifying organization and authorized by an officer, Director, or Chairperson of the organization. 1. Applicant: wo Last First I � ` dfe Date of Birth 2. Applicants mailing address: Street city State Zip 4% a 3. Applicant's home/cell phone. { '-e) ,r 4--- Applicant's business phone. 4. Applicant's email address: I f,f� � Ji r 6 r'A 0 c"1 t 0t 1,(Print Full Name) (R6 1k L" i � declare that I am the APPLICANT filing this application as li ted abov I have d the applica ion and the contents and all statements are true,correct and complete. .,;,2t I X r•,-- --------------------- Signatur Titie/Position Date Phone Number 0 3 The foregoing instrument was acknowledged before me this �2_cj fv\ Z 2 7 g g g State A — `• Day Month Year t Count of Y My Commission Expires on: Date Signature of Notary u kc DENISE A. SMITH 9/12/2017 Page 1 of 5Notary Public-State of Arizona Individuals requiring ADA accommodations call (602)542µ2999 PIMA COUNTY * My Commission Expires Amended Marana Regular Council Meeting 10/03/2017 Pa 1#618 SECTION 5-Regarding the Applicant's application for a special event permit, I hereby certify that the Organization meets the criteria in A.R.S. § 4-203.02(E) for the issuance of the permit as indicated by checking one of the boxes below. (1} The Applicant is a political party or a campaign committee supporting a candidate for public office. Please indicate the name of the candidate that the Applicant supports, the office that the candidate seeks, and the month and year that the applicant would first fill the office if successful. Candidate: Name Office Month/Year {2} The Applicant is a non-profit entity organized in Arizona, or pursuant to the laws of another state that is eligible for designation as a nonprofit entity under Section 501(C) of the internal revenue code of the United States. If the Applicant is applying under option (2) as a nonprofit entity, please also INITIAL in the-space provided next to all following statements to indicate that to the best of theapplicant's knowledge,the are true and correct. The Applicant has received a determination letter from the Internal Revenue Service ("IRS") indicating that it is eligible for designation as a nonprofit entity under Section 501(C), eligibility or will be eligible on all days that the special event will occur, or has a pending application with the IRS for such treatment that has not been resolved but that will retroactively cover all days that the special event will occur. (Please provide a copy of either the IRS determination letter or the application [without attachments] with this application) The Applicant is not aware of any action by the IRS to revoke,suspend, or otherwise eliminate the Applicant's eligibility under 501(C), or if there is a pending application, the Applicant has not received any indication that the IRS will deny its application and has a good faith basis formed upon a reasonable inquiry into IRS regulations, guidelines, and forms that it is eligible under 501(C). The Applicant understands that if there is a change in circumstances after completing this form that may cause or has caused it to lose its eligibility under 501(C),whether before or after receiving an IRS determination letter, that it has an affirmative duty to notify the Department of Liquor,which may then take appropriate action with regard to the loss of eligibility. To be completed only by an Officer,Director,or Chairperson of the organization. i,(Print Full Name) declare that I am an Officer,Director,or Chairperson of the organization filing this application as listed above. I have read the application and the contents and all statements are true,correct and complete. X Signature Title/Position Date Phone Number The foregoing instrument was acknowledged before me this Day Month Year State County of My Commission Expires on: Date Signature of Notary Public ------------------- CTION_j Will this event be held on a currently licensed premise and within the already approved premises?[, Yes[:]No (If yes, Local Governing Body Signature not required) Name of Business License Number Phone(include Area Code) 9/12/2017 Page 2 of 5 Individuals requiring ADA accommodations call(602)542-2999 Amended Marana Regular Council Meeting 10/03/2017 Page 73 of 116 5EQU214 Z How is this special event going to conduct all dispensing, serving,and selling of spirituous liquors? Please read R-19- 31 8 for explanation and check one of the following boxes. []Place license in non-use [:]Dispense and serve all spirituous liquors under retailer's license XDispense and serve all spirituous liquors under special event [Split premise between special event and retail location (IF USING RETAIL LICENSE, PLEASE SUBMIT A LETTER OF AGREEMENT FROM THE AGENTIOWNER OF THE LICENSED PREMISES TO SUSPEND OR RUN CONCURRENT WITH THE PERMANENT LICENSE DURING THE EVENT. IF THE SPECIAL EVENT IS ONLY USING A PORTION OF THE PREMISES, AGENTIOWNER WILL NEED TO SUSPEND THAT PORTION OF THE PREMISES.) SECTION What is the purpose of this event? Pon-site consumption [:]Off-site (auction/wine/distilled spirits pull) E]Both HQUO 9 1. Has the applicant been convicted of a felony, or had a liquor license revoked within the last five (5) years? Des .'�O (if yes,attach explanation.) 2. How many special event days have been issued to this organization during the calendar year? (The number cannot exceed 10 days per year.) 3. Is the organization using the services of a promoter or other person to manage the sale or service of alcohol?Eley Ej�o (if yes,must be a licensed contractor or licensee of series 6,7, 11,or 12) 4. List all people and organizations who will receive the proceeds. Account for 100% of the proceeds. The organization applying must receive 250 of the gross revenues of the special event liquor sales.Attach an additional page if necessary. N a m e,�,Y - fwke "A Percentage: Address. Name Percentage. Address Street city State Zip Please read A.R.S. §4-203.02 S *al -ped event license and R19-1-205 Reguirements for a 5 ec*lal Event License. Note: ALL ALCOHOLIC BEVERAGE SALES MUST BE FOR CONSUMPTION AT THE EVENT SITE ONLY. N0....A_LC0_H_.Q_L1C BEVERAGES.SHALL LEAVE A.5PECIAL EVENT...U.N-LES.S T.HEY--A-RE1N_._A_9.9;jj0N fflblE QR Qj5TjLL.ED..SEjR1TS...P.ULL 5CALEU Q!QbjTAI.N.ER_S._..0.R THE SPECIAL EVENT-1110E.N.SE,IS STACKED-WI-T-H-VIN E MAE1 12151ILLERX FESjI.V.AL..Lj.CEbj.5..E.,_ 5. What type of security and control measures will you take to prevent violations of liquor laws at this event? (List type and number of police/security personnel and type of fencing or control barriers,if applicable.) --Number of Police Number of Security Personnel E he--n c i n g tDrarriers Explanation: 9/12/2017 Page 3 of 5 Individuals requiring ADA accommodations call(602)542-2999 Amended Marana Regular Council Meeting 10/03/2017 Page 74 of 116 SECTIO.N.I.Q Dates and Hours of Event.Days must be consecutive but may not exceed 10 consecutive days. See A.R.S.§4-244(15)and(17)for legal hours of service. PLEASE FILL OUT A SEPARATE APPLICATION FOR EACH "NON-CONSECUTIVE"DAY Date Day of Week Event Start License End Time A M Time AM,, , DAY 1: ri A T-O k�-I�A ce DAY 2: DAY 3: DAY 4: DAY 5: DAY 6: DAY 7: DAY 8: DAY 9: DAY 10: �.EC.JJQN 11 License premises diagram. The licensed premises for your special event is the area in which you are authorized to sell, dispense or serve alcoholic beverages under the provisions of your license. Please attach a diagram of your special event licensed premises. Please show dimensions, serving areas, fencing, barricades, or other control measures and security position. ATTACH DIAGRAM 9/12/2017 Page 4 of 5 Individuals requiring ADA accommodations call(602)542-2999 Amended Marana Regular Council Meeting 10/03/2017 Page 75 of 116 10 T O r% e � 1101011111 1111 MON N@ 1 TAu � Chimic angas Nambure Not Doqsg W � d ❑ y a E N - t..%e awo o� r cl o � epot r �s `i � 7ickel' top gall -- 07001 *IL*ht Auction I Pulp' 46 CEPAM"GhM woo w-,* Qc GAM �a IIl i r i i Date Signature afAppmy4l Nori'h I COPP cLc K OF Church 0 Pa e 79'Lf 116 Please contact the local governing board for additional application requirements and submission deadlines. Additional licensing fees may also be required before approval may be granted. For more information, please contact your local jurisdiction. SECTION 12 local Governing Body Approval Section. Date Received: !, recommend DAPPROVAL 13 DISAPPROVAL (Government Official) (title) On behalf of (City,'town,County) Signature Date Phone ------------------------------ C�APPROVAL CIDISAPPROVAL BY: ------ DATE: 1_�l A.R.S. §41-1030. Invalidity of rules not made according to this chapter;prohibited agency action,- rohibited acts by state employees; enforcement;notice B. An agency shall not base a licensing decision in whole or in part on a licensing requirement or condition that is not specifically authorized by statute, rule or state tribal gaming compact. A general grant of authority in statute does not constitute a basis for imposing a licensing requirement or condition unless a rule is made pursuant to that general grant of authority that specifically authorizes the requirement or condition. D. THIS SECTION MAY BE ENFORCED IN A PRIVATE CIVIL ACTION AND RELIEF MAY BE AWARDED AGAINST THE STATE. THE COURT MAY AWARD REASONABLE ATTORNEY FEES, DAMAGES AND ALL FEES ASSOCIATED WITH THE LICENSE APPLICATION TO A PARTY THAT PREVAILS IN AN ACTION AGAINST THE STATE FOR A VIOLATION OF THIS SECTION. E. A STATE EMPLOYEE MAY NOT INTENTIONALLY OR KNOWINGLY VIOLATE THIS SECTION. A VIOLATION OF THIS SECTION IS CAUSE FOR DISCIPLINARY ACTION OR DISMISSAL PURSUANT TO THE AGENCY'S ADOPTED PERSONNEL POLICY. F. THIS SECTION DOES NOT ABROGATE THE IMMUNITY PROVIDED BY SECTION 12-8201.01 OR 12-820.02. 9/12/2017 Page 5 of 5 Amended Marana Regular Counci�r e6v( HUI)b%�V�'6*ADA accommodations call (602)542-2999 Page 77 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting At Meeting Date: 10/03/2017 To: Mayor and Council From: Steven Vasquez, Senior Planner Date: October 3, 2017 Strategic Plan Focus Area: Not Applicable Subject: PUBLIC HEARING: Ordinance No. 2017.018: Relating to Development; amending Marana Land Development Code Title 5 (Zoning), Section 5.12.03 (HI Heavy Industry) to establish a minimum site size and eliminate the minimum parcel size, parcel width, and parcel depth; and designating an effective date (Steven Vasquez) Discussion: Within the past year, staff has brought before the Town Council various minor amendments to the Land Development Code. These amendments were initiated in response to the development community's input of wanting more flexibility in development standards of zoning districts in order to deal with today's economic conditions. Staff will move forward with implementing amendments to zoning districts as the situation arises and as the comprehensive process of updating the entire Land Development Code continues; therefore, staff brings before the Council a recommendation to revise the "Site Intensity Standards" and "Site Development Standards" of the HI (Heavy Industry) zone. A minimum "site" size is established as one acre and a minimum "parcel" size including width and depth is eliminated. Many areas in Town with HI zoning have been developed into commercial retail centers. Current standards would make subdividing these area difficult or impossible; limiting their marketability. These amendments along with the remaining standards would support the flexibility requested by the development community and facilitate orderly development by the Town within this zoning district. Staff Recommendation: Amended Marana Regular Council Meeting 10/03/2017 Page 78 of 116 Staff recommends adoption of Ordinance No. 2017.018, amending the Marana Land Development Code Title 5 (Zoning), Section S.12.03 (HI Heavy Industry) to establish a minimum site size and eliminate the minimum parcel size, parcel width and parcel depth. Suggested Motion: I move to adopt Ordinance No. 2017.018, approving amendments to Title 5 (Zoning) of the Marana Land Development Code; and designating an effective date. Attachments Ordinance No. 2017.018 Amended Marana Regular Council Meeting 10/03/2017 Page 79 of 116 MARANA ORDINANCE NO. 2017.018 RELATING TO DEVELOPMENT; AMENDING MARANA LAND DEVELOPMENT CODE TITLE 5 (ZONING), SECTION 5.12.03 (HI HEAVY INDUSTRY) TO ESTABLISH A MINIMUM SITE SIZE AND ELIMINATE THE MINIMUM PARCEL SIZE, PARCEL WIDTH, AND PARCEL DEPTH; AND DESIGNATING AN EFFECTIVE DATE WHEREAS the revisions adopted by this ordinance were the subject of a September 27, 2017 Marana Planning Commission public hearing and received a recommendation of approval by a vote of 4 in favor and 0 opposed; and WHEREAS the Mayor and Council of the Town of Marana find that the revisions adopted by this ordinance are in the best interest of the Town of Marana and the general public. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana, Arizona., as follows: SECTION 1. Marana. Land Development Code Title 5 (Zoning), Section 05.12.03 (HI Heavy Industry), paragraphs G (Site Intensity Standards) and H (Site Development Standards) are amended as follows (with deletions shown with s*r,`lTeNE-11 and additions shown with double underlining): 05.12.03 HI HEAVY INDUSTRY A-F. [No changes] G. Site Intensity Standards 1. Minimum Size: 1 acre. 2. Maximum Building Coverage: 50 % of the site. 3. Maximum Floor-Area Ratio: 0.50. 4. Mini mum Parcel or Pad Size: None H. Site Development Standards The following standards shall apply to property in the HI zone: 1 . Parcel Width: None, ThoINf moI I IIInomi im111 11%4111 ==gQlr%.Al Nfv-fl � odth Qh�ll ho 1 00 2. Parcel Depth: None Tho mo no mi im r =Q1 dt=th _Qh:�ll ho Inn1%0%0 foo+ 1 Nf%.#L. 3. [No changes in remainder of paragraph H] I. [No changes] 00053740.DOCX/3 Marana Ordinance No.2017.018 - 1 - 9/6/2017 3:20 PM Amended Marana Regular Council Meeting 10/03/2017 Page 80 of 116 SECTION 2. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed as of the effective date of this ordinance; provided, however, that this repeal shall not affect the rights and duties that matured or penalties that were incurred and proceedings that were begun before the effective date of the repeal. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this ordinance. SECTION 4. This ordinance shall become effective on the thirty-first day after its adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona., this 3rd day of October, 2017. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney 00053740.DOCX/3 Marana Ordinance No.2017.018 - 2 - 9/14/2017 5:15 PM Amended Marana Regular Council Meeting 10/03/2017 Page 81 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting A2 Meeting Date: 10/03/2017 To: Mayor and Council From: Steven Vasquez, Senior Planner Date: October 3, 2017 Strategic Plan Focus Area: Not Applicable Subject: PUBLIC HEARING: Ordinance No. 2017.019: Relating to Development; amending Marana Land Development Code Title 16 (Signs), Section 16-08-01 (Signs Exempted from This Title) to revise the regulations pertaining to flags and flagpoles by eliminating flag content restrictions and increasing permissible flagpole heights under most circumstances (Steven Vasquez) Discussion: Over the years, staff has brought before the Town Council various amendments to Title 16 (Signs) of the Land Development code. These amendments to the sign code have been in response to input from the business community as well as changes in sign types, technology, trends and case law. In the Town's ongoing efforts to respond to today's business conditions, staff will move forward with implementing amendments to the sign code as the comprehensive process of updating the entire Land Development Code continues; therefore, staff brings before the Council a recommendation to revise Title 16-08-01.A.4 regarding standards for flagpoles. Reference to types of flags is removed and the maximum height of flagpoles is revised. Staff Recommendation: Staff recommends adoption of Ordinance No. 2017.019, amending the flag and flagpole requirements found in Section 16-08-O1.A.4 of the Marana Land Development Code. Suggested Motion: Amended Marana Regular Council Meeting 10/03/2017 Page 82 of 116 I move to adopt Ordinance No. 2017.019, amending the flag and flagpole requirements found in Section 16-08-01.A.4 of the Marana Land Development Code. Attachments Ordinance No. 2017.019 Amended Marana Regular Council Meeting 10/03/2017 Page 83 of 116 MARANA ORDINANCE NO. 2017.019 RELATING TO DEVELOPMENT; AMENDING MARANA LAND DEVELOPMENT CODE TITLE 16 (SIGNS), SECTION 16-08-01 (SIGNS EXEMPTED FROM TINS TITLE) TO REVISE THE REGULATIONS PERTAINING TO FLAGS AND FLAGPOLES BY ELIMINATING FLAG CONTENT RESTRICTIONS AND INCREASING PERMISSIBLE FLAGPOLE HEIGHTS UNDER MOST CIRCUMSTANCES WHEREAS the revisions adopted by this ordinance were the subject of a September 27, 2017 Marana Planning Commission public hearing and received a recommendation of approval by a vote of 4 in favor and 0 opposed; and WHEREAS the Mayor and Council of the Town of Marana find that the revisions adopted by this ordinance are in the best interest of the Town of Marana and the general public. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana, Arizona., as follows: SECTION 1. Marana. Land Development Code Title 16 (Signs), Section 16-08-01 (Signs Exempted from This Title) is amended as follows (with deletions shown with str,7Toeuts and additions shown with double underlining): 16-08-01 Signs Exempted from This Title A. The following signs shall be exempt from the application, permit and fee regulations of this Title, although an electrical or building permit may be required: 1. A barber pole, provided it is attached to a wall, no more than eight (8) feet high and a maximum of three (3) feet in length. 2. Six (6) or fewer flags attached to poles no greater than twenty (20) feet in height. 3. Governmental signs. 4. I Initorl CtAtoc of 4morin a f1pa �Ithni'ah nn mnro thAM nno 1'I1 is AIlnWACI rmiQp prnmiQ%.F r%-I IrbA TI IhoI I..f orm cnnc C " i " hAll not ho rJoomorl fn innli irlo 4r179na nr 1..0 r II Ini�orJ Ct��oc ofnt A %.ON I�mW Iorin� fl�rrc nr of %.A Insi hor n� cAll n �I�rrnnloc h Re roc+ ArlAJ i%r►oomit hi,iIII cdRKr n addition to Daramr)b 2 aboveone flag Der The length of a flag shall be no greater than 1/4t" the height of the flagpole. Elaamles shall have the following maximum heiab W 25 feet when accessory to a residential use iil In all other situations, the higher of: 00054247.DOCX/1 Marana Ordinance No.2017.019 - 1 - 9/21/2017 11:11 AM Amended Marana Regular Council Meeting 10/03/2017 Page 84 of 116 (a) 30 feet; or bl 1.25 times the heiaht of any building within 200 feet of where the laabole is to be constructed, but in any event not to exceed 50 faeL [Remaining provisions are unchanged] SECTION 2. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are repealed as of the effective date of this ordinance; provided, however, that this repeal shall not affect the rights and duties that matured or penalties that were incurred and proceedings that were begun before the effective date of the repeal. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, the decision shall not affect the validity of the remaining portions of this ordinance. SECTION 4. This ordinance shall become effective on the thirty-first day after its adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona., this 3rd day of October, 2017. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney 00054247.DOCX/1 Marana Ordinance No.2017.019 - 2 - 9/21/2017 11:11 AM Amended Marana Regular Council Meeting 10/03/2017 Page 85 of 116 .Ad MARANA AZ ESTABLISHED 1977 Council-Regular Meeting A3 Meeting Date: 10/03/2017 To: Mayor and Council From: Erik Montague, Finance Director Date: October 3, 2017 Strategic Plan Focus Area: Community Subject: Resolution No. 2017-094: Relating to Administration; approving the transfer of up to $125,000 in budgeted expense authority from the Water Operating Fund system repairs and emergency reserve line items in the fiscal year 2017-2018 budget to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area (Erik Montague) Discussion: Marana Estates was built in 1950-1951. The small neighborhood consists of two roads: Amole Circle and West Tortolita Street. The existing water infrastructure is a mixture of random pipe sizes and materials; limited number of valves within native soil material and only at a depth of 18"-24" below road grade. Over the last couple of weeks, a portion of Amole Circle has catastrophically failed six times. Due to a lack of valves throughout the neighborhood, customers were without water service for significant portions of time during those failure events. The Water Department previously identified the need to replace portions of the system and anticipated a phased approach over multiple years. However, based upon the number of failures and the related impact of water outages to residents, the Water Department recommends the replacement of the entire system in one year. The Water Department specifically budgeted $20,000 within the system repairs line item for the partial replacement (phased approach) in the current 2017-2018 fiscal year. Current cost estimates for a complete replacement are around $115,000 to $125,000. The Water Department does have expense budget capacity within the operating fund between system repairs and emergency reserve line items. Therefore, since the cost of the project now exceeds the threshold for a capital project, staff is seeking Council authorization for the transfer of up to $125,000 in budgeted expense authority Amended Marana Regular Council Meeting 10/03/2017 Page 86 of 116 from the Water Operating Fund system repairs and emergency reserve items in the fiscal year 2017-2018 budget to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area. If approved, the new infrastructure will be at 2017 standards which includes a pipe depth of 42"-48", placed in engineered trench fill, not native soils, and will consist of about 1,500 feet of 6-inch PVC necessary to complete the entire neighborhood. Next year, Public Works is planning to rehabilitate streets with rubberized coatings. Financial Impact: Fiscal Year: 2017-2018 Budgeted Y/N: N Amount: $125,000 If approved, the transfer of up to $125,000 in Water Operating Fund expense budget to the Water Capital Fund is not expected to have a material impact on the Water Operating Fund. Staff Recommendation: Staff recommends the approval of the transfer of up to $125,000 in budgeted expense authority from the Water Operating Fund system repairs and emergency reserve items in the fiscal year 2017-2018 budget to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area. Suggested Motion: I move to adopt Resolution No. 2017-094, approving the transfer of up to $125,000 in budgeted expense authority from the Water Operating Fund system repairs and emergency reserve items in the fiscal year 2017-2018 budget to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area. Attachments Resolution No. 2017-094 Amended Marana Regular Council Meeting 10/03/2017 Page 87 of 116 MARANA RESOLUTION NO. 2017-094 RELATING TO ADMINISTRATION; APPROVING THE TRANSFER OF UP TO $125,000 IN BUDGETED EXPENSE AUTHORITY FROM THE WATER OPERATING FUND SYSTEM REPAIRS AND EMERGENCY RESERVE LINE ITEMS IN THE FISCAL YEAR 2017-2018 BUDGET TO THE WATER CAPITAL FUND CAPITAL CONSTRUCTION LINE ITEM FOR EXPENSES RELATED TO THE REPLACEMENT OF WATER LINES WITHIN THE MARANA ESTATES AREA WHEREAS on June 20, 2017, the Town Council adopted the fiscal year 2017-2018 budgetary document and overall financial plan which set the legal level of budgetary control at the department level for the General Fund and at the fund level for all other funds; and WHEREAS the Town Council desires to transfer budgeted expenditure authority in the fiscal year 2017-2018 budget of up to $125,000 from the Water Operating Fund system repairs and emergency reserve line items to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana Estates area; and WHEREAS transferring the budgeted expenditure authority from the Water Operating Fund of up to $125,000 within fiscal year 2017-2018 will not significantly impact the Fund; and WHEREAS reallocations of budgeted expenditure authority between line items are nec- essary from time to time; and WHEREAS the Council finds that the reallocations addressed by this resolution are in the best interest of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RES O LVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The transfer of up to $125,000 in budgeted expenditure authority from the Water Operating Fund system repairs and emergency reserve line items to the Water Capital Fund capital construction line item for expenses related to the replacement of water lines within the Marana. Estates area is hereby approved. SECTION 2. The Town's Manager and staff are hereby directed and authorized to un- dertake ndertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of this resolution. Marana Resolution No.2017-094 - 1 - Amended Marana Regular Council Meeting 10/03/2017 Page 88 of 116 PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3rd day of October, 2017. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Marana Resolution No.2017-094 - 2 - Amended 2 - Amended Marana Regular Council Meeting 10/03/2017 Page 89 of 116 'Ad � MARANA AZ ESTABLISHED 1977 Council-Regular Meeting D1 Meeting Date: 10/03/2017 To: Mayor and Council Submitted For: Gilbert Davidson, Town Manager From: Anthony Hunter, Management Assistant Date: October 3, 2017 Strategic Plan Focus Area: Not Applicable Subject: Resolution No. 2017-095: Relating to Strategic Planning; approving and authorizing implementation of Marana Strategic Plan Four (Gilbert Davidson) Discussion: The Marana Town Council adopted the first Strategic Plan in 2008, and this revised version will be the fourth iteration of the plan. Town Department Heads along with the Town Manager's office facilitated discussions with the Town Council on each Focus Area of the plan: Commerce, Community, Innovation, Heritage, and Recreation. From these discussions were derived recommendations on both new initiatives and revisions to the Strategic Plan III. Over the next several months, staff worked through these recommendations to incorporate them into a new, comprehensive document reflecting the Town Council's vision and strategy for the Marana community. At the September 12 Council study session, staff sought feedback from the Council regarding the updated Strategic Plan. If Council approves the proposed Strategic Plan Four document, department leads will begin the process of developing action plans to achieve the individual initiatives. Periodic reports will be provided to Council and the public concerning updates on strategic plan progress. Staff Recommendation: Council's pleasure. Suggested Motion: Amended Marana Regular Council Meeting 10/03/2017 Page 90 of 116 I move to adopt Resolution No. 2017-095; approving Marana Strategic Plan Four. Attachments Resolution No. 2017-095 Strategic Plan Four Amended Marana Regular Council Meeting 10/03/2017 Page 91 of 116 MARANA RESOLUTION NO. 2017-095 RELATING TO STRATEGIC PLANNING; APPROVING AND AUTHORIZING IMPLEMENTATION OF MARANA STRATEGIC PLAN FOUR WHEREAS the Town of Marana has engaged in a process to update the key focus areas and initiatives that constitute the Town of Marana. Strategic Plan; and WHEREAS the Town of Marana has updated its Strategic Plan document to serve as the foundation for the Town's future, including land use planning, budget development and assessment of individual and organizational performance; and WHEREAS the Town Council finds that adoption of the updated Town of Marana. Strategic Plan is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT RES O LVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana Strategic Plan Four, attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved, and the Town Manager is hereby authorized 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 Town of Marana. Strategic Plan Four. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona., this 3rd day of October, 2017. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney 00054273.DOCX/1 Marana Resolution No.2017-095 Amended Marana Regular Council Meeting 10/03/2017 Page 92 of 116 T R A T E I C ............ MARANA AZ • • • • • 0 Id Marana Regular Council Meeting 10/03/2017 Page 93 of 116 • INTRODUCTION The Marana Strategic Plan sets a course for action to be taken by elected leaders and professional staff to address community needs and position Marana for the future. The Strategic Plan is a flexible tool to guide and promote forward thinking.The achievements resulting from the plan will be enjoyed by current residents and future generations. Working together, Marana can ensure that the community is an even greater place to live,work and play. Amended Marana Regular Council Meeting 10/03/2017 Page 94 of 116 • TABLE OF CONTENTS MaranaToday .......................................................................................... 4 Vision for the Future5 ................................................................................... Vision Overriding Principles Five Focus Areas and Strategic Goals Commerce ............................................................................................... 6 Community ............................................................................................... 10 Innovation ............................................................................................... 14 Heritage ................................................................................................... 18 Recreation ............................................................................................... 20 Amended Marana Regular Council Meeting 10/03/2017 Page 95 of 116 • MA RA N A TO DAY Citizens and businesses have chosen Marana because of its quality of life, rich heritage,visionary leadership and abundant opportunities.The attributes that make Marana a great place to live and raise a family also make it a great place to do business. Location: Marana is a 126 square mile town strategically located between Phoenix and Tucson. It has 17 miles of both Interstate highway and railroad mainline, providing tremendous opportunities to attract business and industry. Marana is in the beautiful Sonoran Desert with wide open spaces and abundant wildlife. Quality of Life: As one of Arizona's fastest growing communities, the diverse opportunities for housing,recreation, and employment make Marana a choice destination for residents, tourists, businesses and industry. People have lived in the area for more than 4,000 years, creating a rich legacy of history and heritage. Today the people of Marana carry on this legacy by balancing responsible natural resource use with robust economic development. Marana is focused on ensuring that the community has adequate water, sewer, transportation and public safety infrastructure to meet the demands of a growing community. Amended Marana Regular Council Meeting 10/03/2017 Page 96 of 116 VISION FOR THE FUTURE Marana's Strategic Plan outlines the vision for the future and identifies five focus areas with goals to achieve that vision.The focus areas,with their corresponding goals, identify where resources should be directed to achieve Marana's vision. VISION: Committed to providing exceptional public service, a climate for economic sustainability and a welcoming environment that makes Marana Your Town for life. OVERRIDING PRINCIPLES: • Financial Sustainability • Quality Public Service • Strategic Partnerships • Local Resource Investment FIVE FOCUS AREAS AND STRATEGIC GOALS: 00 0 COMMERCE Attract and maintain career-oriented commerce COMMUNITY Create a safe community where all people are motivated to be involved and feel connected and valued PROGRESS AND INNOVATION Foster an open atmosphere that embraces change, creativity, innovation, and calculated risk HERITAGE Strengthen community character by linking the past, present and future RECREATION Provide diverse recreational opportunities that create economic benefits and a healthy lifestyle Amended Marana Regular Council Meeting 10/03/2017 Page 97 of 116 Amended Marana Regular Council Meeting 10/03/2017 Page 98 of 116 WE WILL PROVIDE EXCEPTIONAL CUSTOMER SERVICE THROUGH PRINCIPLE STATEMENT 1 OUR DEVELOPMENT AND SERVICES. 1. Continuously monitor development and utility services processes and procedures for efficiency improvements. LEAD: DEVELOPMENT SERVICES DIRECTOR 2. Implement training and development opportunities for customer service, technology, and other areas to help enhance the customer experience. LEAD: DEVELOPMENT SERVICES DIRECTOR 3. Benchmark against peer jurisdictions to ensure policies, procedures and operations are competitive (i.e. processing times, customer service offerings, cost). LEAD: DEPUTY TOWN MANAGER 4. Implement and maintain a customer service assistance program to support applicants with all licensing and permitting requirements both internally and externally. LEAD: DEVELOPMENT SERVICES DIRECTOR 5. Institute a "concierge manager" for applicants to assist with inquiries, solve problems during the permitting process, and reduce unnecessary points of contact with multiple departments. LEAD: DEPUTY TOWN MANAGER 6. Ensure every permit application, policy, and procedure is downloadable and/or able to be filled out on-line. Implement periodic reviews of the webpages to ensure "ease of use," navigation, and relevance. LEAD: DEVELOPMENT SERVICES DIRECTOR 7. Implement procedures to survey every customer to gauge satisfaction and value. Strive to maintain 90% plus satisfaction for overall customer service. LEAD: ASSISTANT TO THE TOWN MANAGER 8. Develop an on-line dashboard indicator to highlight development services LEAD: TECHNOLOGY MANAGER-APPLICATIONS Amended Marana Regular Council Meeting 10/03/2017 Page 99 of 116 PRINCIPLE STATEMENT 2 WE WILL SEEK AND RETAIN DIVERSE INDUSTRIES AND COMMERCE. 1. Implement the 2017 economic development strategic plan. LEAD: ECONOMIC DEVELOPMEI I• DIRECTOR 2. Research, evaluate, and implement economic development tools and strategies to support business development and expansion. LEAD: ECONOMIC DEVELOPMENT DIRECTOR 3. Invest in airport infrastructure and lease opportunities to grow airport operations. LEAD: AIRPORT DIRECTOR 4. Pursue opportunities to attract a retail grocery operation in North Marana, including consideration of public/private partnerships. LEAD: ECONOMIC DEVELOPMENT DIRECTOR 5. Develop strategies and promote initiatives to further the development of the downtown district. LEAD: ECONOMIC DEVELOPMENT SPECIALIST 6. Evaluate and consider strategic annexations to enhance economic and residential development. LEAD: ECONOMIC DEVELOPMENT DIRECTOR 7. Obtain best practices, develop contacts, and implement strategies and tools from state and national organizations such as Arizona Commerce Authority (ACA), SunCorridor, Arizona Association of Economic Developers, International Council of Shopping Centers (ICSC), and the International Economic Development Council (IEDC). LEAD: ECONOMIC DEVELOPMENT DIRECT,- 8. IRECT8. Develop a collaborative marketing campaign with the Town's K-12 educational partners to showcase the high quality educational offerings. LEAD: COMMUNICATIONS MANAGER 9. Utilize the resources of universities, colleges, and K-12 education to provide training, assistance, best practices, and support to Town departments. LEAD: TOWN MANAGER 10. Partner with universities and colleges to host and provide educational opportunities for Marana residents and businesses. LEAD: COMMUNITY DEVELOPMENT DIRECTOR Amended Marana Regular Council Meeting 10/03/2017 Page 100 of 116 1 1. Expand Marana's tourism efforts by creating a tourism master plan. • LEAD: TOURISM MANAGER 12. Implement tourism dashboard highlighting impact upon the community. LEAD: TOURISM MANAGER 13. Invest Town resources to ensure travel ways, public spaces, parks, public facilities, and other community spaces are clean, maintained, and showcase Marana's high standard of excellence. LEAD: PUBLIC WORKS DIRECTOR 14. Partner with Marana Chamber of Commerce to conduct regular business walks. LEAD: ECONOMIC DEVELOPMENT DIRECTOR 15. Ensure capital improvement projects advance the community's economic development goals and adhere to aesthetic standards. LEAD: TOWN ENGINEER 16. Create a Bicycle Patrol Unit to augment patrol services, with a focused attention on business districts. !' LEAD: CHIEF OF POLICE 17. Explore the creation of a 501(c)(3)-designated Marana Police foundation to assist with the funding of projects and equipment to enhance safety in the community. LEAD: CHIEF OF POLICE Amended Marana Regular Council Meeting 10/03/2017 Page 101 of 116 • Amended Marana Regular Council Meeting 10/03/2017 Page 102 of 116 WE WILL MAINTAIN A SAFE AND PRINCIPLE STATEMENT 1 WELL-MANAGED G COMMUNITY. I 1. Implement a Town-wide asset management program. LEAD: ASSISTANT TO ThE TOWN MANAGER 2. Provide a responsive community and service-oriented professional police department. • LEAD: CHIEF OF POLICE 3. Create a monument sign program that employs creative and unique designs for each location. LEAD: PUBLIC WORKS DIRECTOR 4. Develop policies and procedures to achieve a bond rating of AA or higher. LEAD: FINANCE DIRECTOR 5. Implement a financially viable solution for the Tortolita Preserve State Land lease. LEAD: TOWN ATTORNEY 6. Encourage and maintain a culture of high ethical standards. r-AD: ASSISTANT TOWN MANAGER 7. Develop a dashboard view of critical indicators for Council and public to better understand financial, personnel, and program/project status. LEAD: ASSISTANT TO THE TOWN MANAGER 8. Continually seek and evaluate new water resources and water conservation efforts to increase the Town's water portfolio. LEAD: WATER DIRECTOR 9. Achieve Accreditation for the Marana Police Department through the Arizona Association of Chiefs of Police State Accreditation Program. LEAD: CHIEF OF POLICE Amended Marana Regular Council Meeting 10/03/2017 Page 103 of 116 WE WILL APPROACH CITIZEN PRINCIPLE STATEMENT 2 ENGAGEMENT IN UNIQUE AND CREATIVE WAYS. • 1. Provide exceptional community events that create opportunities for citizen engagement. LEAD: SPECIAL EVENTS COORDINATOR 2. Evaluate and continuously improve the Marana Citizens' Forum and ensure Forum recommendations are implemented wherever possible. LEACH: TOWN CLERK 3. Identify creative ways to plan neighborhoods and growth areas with meaningful open space, trail connectivity, and active recreation areas. LEAD: DEVELOPMENT SERVICES DIRECTOR 4. Develop a checklist of design standards for new commercial, residential and capital improvement projects. LEAD: DEVELOPMENT SERVICES DIREC) 5. Identify multi-modal transit options and forecast future needs. LEAD: COMMUNITY DEVELOPMENT DIRECTOR 6. Increase external funding through grants and other funding sources. LEAD: COMMUNITY DEVELOPMENT DIRECTOR 7. Develop a Town-wide public art policy to install and showcase unique pieces reflecting and celebrating the community. LEAD: COMMUNITY DEVELOPMENT uiRECTOR 8. Enhance community relations and interaction through community- based, problem-oriented policing efforts. LEAD: CHIEF OF POLICE 9. Increase opportunities for positive interactions between the Police and the community utilizing the new police facility. LEAD: CHIEF OF POLICE Amended Marana Regular Council Meeting 10/03/2017 Page 104 of 116 I 10. Create Marana-specific crime prevention campaigns to enhance public safety efforts in areas such as distracted driving, retail theft and child safety. LEAD: CHIEF OF POLICE 11. Further enhance communication sharing and interaction between the Marana Police Department and the community through social media and other digital resources. LEAD: CHIEF OF POLICE Amended Marana Regular Council Meeting 10/03/2017 Page 105 of 116 ■ Amended Marana Regular Council Meeting 10/03/2017 Page 106 of 116 WE WILL EXPLORE BOLD IDEAS AND INCORPORATE PRINCIPLE STATEMENT 1 BEST PRACTICES TO CREATE A FOUNDATION FOR VISIONARY COMMUNITY LEADERSHIP. 1. Encourage, reward, and facilitate innovative ideas. LtAD: nJMAN RESOURCES DIRECTOR • 2. Create new committees that focus on internal education and identifying activities that preserve natural resources, increase energy efficiency, and minimize impact on the environment. LEAD: ASSISTANT TOWN MANAGER 3. Identify and evaluate technological tools and applications to increase government transparency and to connect with citizens regarding projects, records, and other town activities. LcAD: TECHNOLOGY SERVICES DIRECTOR R Amended Marana Regular Council Meeting 10/03/2017 Page 107 of 116 WE WILL EXCEL IN COMMUNICATION WITH INTERNAL COLLABORATION PRINCIPLE STATEMENT 2 AND PARTNERSHIPS BETWEEN DEPARTMENTS TO ENHANCE PROJECT MANAGEMENT. • 1. Facilitate formal and informal two-way communication between • employees, divisions, and departments to ensure better outcomes and avoid missed opportunities. I FAD: HUMAN RESOURCES DIRECTOR 2. Foster flexible support across departments that incorporate and practice team centered management to solve problems and collaborate on projects. LEAD: HUMAN RESOURCES DIRECTOR 3. Ensure accurate and timely information is available to employees and the public via the Town's website, social media accounts, and other media sources. LEAD: COMMUNICATIONS MANAGER Amended Marana Regular Council Meeting 10/03/2017 Page 108 of 116 WE WILL SUPPORT AN EFFICIENT AND EFFECTIVE BUSINESS MODEL FOCUSED ON SERVICE DELIVERY BY PRINCIPLE STATEMENT 3 ALIGNING OUR ORGANIZATIONAL CULTURE AND INTERNAL PROCESSES AND PROCEDURES TO REFLECT INDUSTRY BEST PRACTICES. 1. Invest in professional development and continuous learning opportunities for employees that include educational assistance, cross-department staff rotation,job-related training, and professional certifications. LEAD: ,JMAN RESOURCES DIRECTOR 2. Support a strong organizational culture through an employee recognition program. LEAD: HUMAN RESOURCES DIRECTOR 3. Consistently model a culture of innovation throughout the organization. LEAD: TOWN MANAGER Amended Marana Regular Council Meeting 10/03/2017 Page 109 of 116 Amended Marana Regular Council Meeting 10/03/2017 Page 110 of 116 WE WILL SEEK TO PRESERVE THE PRINCIPLE STATEMENT 1 UNIQUE HISTORY AND CULTURE OF MARANA FOR GENERATIONS TO COME. 1. Create a comprehensive preservation policy focusing on the discovery, classification, and maintenance of historically or culturally significant artifacts, sites, and stories. • LEAD: TOWN CLLRK 2. Expand and promote Founder's Day and Marana Cotton Festival as showcases of the Marana quality of life and its history. LEAD: SPECIAL EVENT COORDINATOR 3. Identify architectural design standards that reflect key attributes and images of Marana's history. LEAD: DEVELOPMENT SERVICES DIRECTOR 4. Maintain the partnership with the Marana Heritage Conservancy and , seek out new partnerships with other agencies and organizations. LEAD: TOWN CLERK 5. Encourage developers and builders to showcase unique parts of Marana through their projects. ,,,1111�Iir;illUill4ii t(i LEAD: D EV L LO PM E NT SERVICES DIRECTOR Amended Marana Regular Council Meeting 10/03/2017 Page 111 of 116 Amended Marana Regular Council Meeting 10/03/2017 Page 112 of 116 • WE WILL PROMOTE HEALTHY AND ACTIVE LIFESTYLES THROUGH DYNAMIC PROGRAMMING, PRINCIPLE STATEMENT 1 COMMUNITY PARTNERSHIPS, AND HIGH-QUALITY RECREATIONAL AMENITIES FOR MARANA RESIDENTS AND VISITORS. 1. Implement the updated Parks and Recreation Master Plan. LEAD: eARKS AND RECREATION DIRECTOR 2. Assess current recreational options and identify needed community amenities and programs. LEAD: PARKS AND RECREATION DIRECTOR 3. Support plans for a multi-purpose community recreation center. LEAD: PARKS AND RECREATION DIRECTOR 4. Continue creating path, greenway and trail linkage to parks, recreation facilities, schools, commercial development and other public infrastructure. LEAD: PARKS AND RECREATION DIRECTOR 5. Identify a master trails, bike, pathway, sidewalk plan, linking together the unique and separate development areas of the community. LEAD: PARKS AND RECREATION DIRECTOR 6. Use recreation facilities and partnerships with recreation contractors to provide exceptional programming. AD: PARKS AND RECREATION DIRECTOR 7. Provide multi-generational programming and activities. LEAD: ?ARKS AND RECREATION DIRECTOR Amended Marana Regular Council Meeting 10/03/2017 Page 113 of 116 WE WILL MAINTAIN THE HIGHEST STANDARDS OF CUSTOMER SERVICE PRINCIPLE STATEMENT 2 FOR GUESTS OF OUR PARKS AND CUSTOMERS OF OUR RECREATION PROGRAMMING. 1. Develop a concierge approach to customer service. LEAD: PARKS AND RECREATION DIRECTOR 2. Ensure online registration is accessible and easy to use. LEAD: PARKS AND RECREATION DIRECTOR 3. Park facilities and spaces should be maintained to the highest standard. LtAU: r ARKS AND RECREATION DIRECTOR Amended Marana Regular Council Meeting 10/03/2017 Page 114 of 116 • WE WILL CAPITALIZE ON THE UNIQUENESS AND VALUE OF THE SONORAN DESERT IN OUR PRINCIPLE STATEMENT 3 RECREATION PROGRAMMING, COMMUNITY PLANNING, AND TOURISM ATTRACTION EFFORTS. 1. Use recreation facilities and programming as opportunities to highlight the unique Sonoran Desert. LEAD: PARKS AND RECREATION DIRECTOR 2. Create desert-integrated programming. LEAD: PARKS AND RECREATION DIRECTOR 3. Develop partnerships with University of Arizona, Arizona-Sonora Desert Museum to enhance programming and amenities. LEAD: PARKS AND RECREATION DIRECTOR i R Amended Marana Regular Council Meeting 10/03/2017 Page 115 of 116 AM MARANA 1 ESTABLISHED 1977 • • • • • 0 0 Amended Marana�' iL"gular Council Meeting 10/03/2017 Page 116 of