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HomeMy WebLinkAbout11/07/2017 Regular Council Meeting Minutes MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, November 7, 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 REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 7:00 p.m. Town Clerk Bronson called roll. All Council Members were present. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Motion to approve by Council Member Ziegler, second by Council Member McGorray. Passed unanimously. CALL TO THE PUBLIC, Ed Stolmaker, President and CEO of the Marana Chamber of Commerce, thanked Council for their support of Marana.Earth Day held November 4, 2017. The festival was attended by over 1500 people, and many local businesses participated to make it a huge success. He looks forward to having the festival again next year. Paul Parisi spoke on behalf For Tucson which is bringing biblical solutions for community problems. Tonight he is inviting Council to the breakfast reception and blessing for elected officials and first responders that will be held January 5, 2018. This will be an opportunity to honor the men and women who serve and protect us. Hundreds of first responders are invited, and he is asking that community leaders, should they choose, purchase tables of 8 for $150 to make this occasion free to those first line providers. He concluded that of all the jurisdictions he addresses, Marana is the shining light and his favorite place to come to. David Morales spoke on behalf of Veterans, noting that since September 11, 2001, more veterans have committed suicide than have been killed in action. He asked that everyone say a prayer for and remember living veterans. November 7,2017 Regular Council Meeting Minutes 1 PROCLAMATIONS. Ms. Bronson noted that there was no one in the audience to accept the proclamation; therefore, it was not read but was made a part of the permanent record. Pl Proclaiming November 25, 2017 as Small Business Saturday (Jocelyn C. Bronson) MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS. Council Member Comerford remarked on the huge success of the Cotton Festival, and thanked staff for the tremendous work they put into it. Mayor Honea noted that tonight will be Gilbert Davidson's last Council meeting as Town Manager. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS. Gilbert Davidson noted that the Council Executive report for the month of October is available online. Mr. Davidson then read a prepared statement to Council, acknowledging his 12 years with the town, the friendships he has made and will continue to treasure. He entreated Council and staff to keep making Marana the great place it is today because he will be bringing his family back here to live. There was a standing ovation from the Council and audience. PRESENTATIONS CONSENT AGENDA. Motion to approve by Council Member Kai, second by Vice Mayor Post. Passed unanimously. C1 Resolution No. 2017-095: Relating to Utilities; approving and authorizing the Mayor to execute a one-year extension of the intergovernmental agreement between the Town of Marana and Pima County for provision of water consumption data and sewer user account billing services (John Kmiec) C2 Ordinance No. 2017.022: Relating to Procurement; amending Title 3 (Administration) of the Marana Town Code by replacing existing Chapter 3-4 (Purchasing) with new Chapter 3-4 (Procurement); and designating an effective date (Jane Fairall) Resolution No. 2017-099: Relating to Procurement; declaring as a public record filed with the Town Clerk the comprehensive rewrite of Marana Town Code Chapter 3-4 (Procurement) adopted by Ordinance No. 2017.022 (Jane Fairall) C3 Resolution No. 2017-100: Relating to Administration; approving the transfer of$340,000 in budgeted expenditure authority from the General Fund contingency line item to the restricted budget line items within the Police, Legal and Technology Services Departments for unanticipated costs in the fiscal year 2016-2017 budget(Erik Montague) C4 Resolution No. 2017-101: Relating to Real Estate; approving and authorizing the acceptance of a dedication of 0.225 acres of land located in the Gladden Farms Blocks 7 & 13 subdivision (Frank Cassidy) C5 Resolution No. 2017-102: Relating to development; approving a final plat for Marana Market Place Lots 1-7 located at the southeast corner of Grange Grove and River Roads (Steven Vasquez) November 7,2017 Regular Council Meeting Minutes 2 C6 Resolution No. 2017-103: Relating to Development; approving a final plat for Blue Agave II at Dove Mountain, Lots 193-256 and Block "I" (PRV Site) and Common Areas "A" (Private Streets), "B" (Open Space/Drainage) and "C" (Park), generally located in the southwest corner of the intersection of Dove Mountain Boulevard and Brittle Brush Drive (Steven Cheslak) C7 Resolution No. 2017-104: Relating to Development; approving a final plat for Gladden Farms Block 26 Lots 1-96 and Common Areas Al - A4 and BI - B5 located approximately at the southeast corner of Postvale and Moore Roads (Steven Vasquez) C8 Resolution No. 2017-105: Relating to Community Development; approving and authorizing the Mayor to execute Amendment No. I to the intergovernmental agreement between Pima County and the Town of Marana for the management and implementation of the 2017-2018 Community Development Block Grant Program (Lisa Shafer) C9 Approval of October 17, 2017 Regular Council Meeting Minutes and October 30, 2017 Special Council Meeting Minutes (Jocelyn C. Bronson) LIQUOR LICENSES L1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an Acquisition of Control series 10 Beer and wine Store liquor license application submitted by Jodi L. Vurmvas on behalf of Good 2 Go, located at 8333 N. Cortaro Road, Marana, Arizona 85743 (Jocelyn C. Bronson). Ms. Bronson noted that the application was properly posted and reviewed, and staff is recommending approval. .Motion to approve by Vice Mayor Post, second by Council Member Bowen. Passed unanimously. BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al PUBLIC HEARING: Relating to Development; regarding the intent to assess development impact fees for street facilities, park facilities, water facilities, and sewer facilities (Keith Brann, John Kmiec). Mayor Honea opened the public hearing. Mr. Brann began, noting that this hearing is the next step in the implementation process. He gave a brief recap of the implementation process. We are now into the part of the process where we have to determine what the proportionate share is for the equivalent dwelling units (EDU's). we will also assign credits for concurrent revenues, if they are applicable. The land use assumptions previously approved by Council showed that the amount of growth projected for residential was nearly level to what was in the 2014 reports. But the commercial projections were significantly decreased, mainly because of the commercial that was forecast in the 2014 reports had already been realized — namely the mall at Twin Peaks and a lot of the retail at the Westside retail at Cortaro. The service areas for the street fees are the same as we currently have. We have a northeast fee that is part of the newer style of impact fee calculations done in 2014. We allowed the northwest to lapse in 2014. In the south we elected to not implement the new fee but to ratify the existing fee which at the time was allowed under state law as the use of that fee was for debt service on the Twin Peaks interchange. November 7,2017 Regular Council Meeting Minutes 3 Moving forward from the infrastructure improvement plan that we just had approved, we are calculating what infrastructure could be done in the northwest and the south as well as the northeast. We are looking at approximately $68M of infrastructure split across the three impact fee zones. On the parks side, we are looking at approximately $17M of park improvements which are compliant with state law and avoid anything that is in the prohibited category. These are all active recreation components and trail systems within various parks within the town. John Kmiec then gave a quick recap of the IIP's for the three main impact fees. On the water infrastructure side, we have separated fees into three benefit areas: the Twin Peaks benefit area, the improvements at the Saguaro Bloom/North Marana area, and other improvements at the Saguaro Bloom development. Between the Twin Peaks benefit area and the North Marana benefit area and a little left at Saguaro Bloom, we are looking at about $12.1M in this 10-year plan for infrastructure reimbursements. On the water resource fee, this fee is applied to every customer in the town of Marana as well as those customers that Marana water is responsible for Tucson water customers. The portion of the plant acquisition for the sewer system as well as operations for the sewer are part of that water resource fee as well as the debt servicing for the water recharge facility that is under construction That fee is slightly more than $14.5M over the I 0-year cycle. On the sewer infrastructure plan, we have the plant acquisition debt servicing and the associated upgrades that we are currently doing. We have identified some collection system improvements as the north Marana sewer continues to build out as well as putting together a collection system master plan for north Marana. That sewer is approximately $13.3M associated with that impact fee. These impact fees are not creditable. For streets and parks, population generates revenues to the town, so in terms of construction, population generates construction sales tax which is used by the town for capital construction, so it is a concurrent revenue source. We have to go through a calculation to determine what the proportion is per EDU, and we deduct that from the raw impact fee which gives us the base impact fee, and that is the impact fee that gets published to the public. There is a state formula that determines what the construction sales tax credit is and takes into account that for every dollar you spend on a construction item, the state assumes 65% of that is the materials and is taxable, and the other 35% is the labor. Through an additional formula you get the construction tax that is creditable by state law. He then provided a quick example of this that was given to SAMBA and MPA to come up with a base fee. The construction casting that we are using is the same costing we use for our building permit fee methodology which is the International Code Council construction cost per square foot. We feel it is a conservative number in favor of the development community. Mr. Brann continued by noting that we now have to determine what is proportional to the growth that is going to occur in the next 10-year cycle. From there, we determine the cost per EDU capacity in the next 10-years. This becomes the raw impact fee. The next part of the process is to determine current revenues which are creditable against impact fees. At the end of the day, should a builder build infrastructure that was part of the IIP, they get an actual infrastructure credit for that against their development. November 7,2017 Regular Council Meeting Minutes 4 Mr. Kmiec then discussed the increases and decreases associated with the proposed base impact fees. Mr. Brann noted that these proposed fees are for one single EDU which is equivalent to a single family residence. Mr. Brann concluded with a summary of the timeline. Staff will be coming back for possible adoption on December 19, 2017 for a March 2018 effective date. He noted that comments had been received from SAHBA and MPA. MPA had no material comments at this time. SAHBA replied with some additional comments that were the same comments during the IIP phase that they feel have not been addressed. Staff did submit a letter addressing their comments, so we still have some more work to do to come to an agreement with SAHBA on the philosophy of our impact fees. Mayor Honea called on Shawn Cote from SAHBA, who had submitted a speaker card. Mr. Cote noted that affordability is an issue for the home builders, with the cost of a new home in the $350K. range. SAHBA is concerned about how the fees were calculated as well as the fee amounts. He encouraged Council to reach out to home builders between now and final adoption and get their feedback on the fees and we ask for Council's consideration on housing affordability and maintaining a healthy housing market. There being no further speakers, Mayor Honea closed the public hearing. There were no comments from Council, and no action was required. A2 PUBLIC HEARING: Ordinance No. 2017.023: Relating to Development; amending Marana Ordinance No. 2007.09, which adopted The Villages of Tortolita Specific Plan, governing land uses on approximately 1,780 acres of land located on the east side of Interstate 10 from about Marana Road on the south to about two-thirds of a mile north of the Pinal County line; and approving and authorizing the Mayor to sign The Villages of Tortolita Development Agreement (Brian D.Varney & Frank Cassidy). Council Member Kai declared a conflict and left the dais for this item. Mayor Honea opened the public hearing. Presented by Frank Cassidy, who noted that in 2007 when the ordinance for the specific plan for The Villages of Tortolita was adopted, there was a condition that said there would be no building permits within The Villages of Tortolita unless and until the Tortolita traffic interchange was constructed. In the interim we had the downturn in the economy, and now that things are picking back up, there have been negotiations between the developer and the town.. In that same general area, the town is dealing with some necessary road improvements such as the Adonis Road extension from the current end of Crier Road down to Tangerine for secondary access by San Lucas and the Villages and Adonis. Also, we need some improvements to the Marana Road interchange. In the discussions between the developer and,the town, we were looking for a win-win situation, and this item is the result of those negotiations. The ordinance before Council will adopt a development agreement and authorize the Mayor to sign it, and upon satisfaction of the construction obligations under the development agreement the condition of the rezoning that said you couldn't have any units in The Villages of Tortolita gets amended so that they could have up to 1,000 units depending on some traffic studies and other infrastructure requirements, before building the Tortolita TI. And under the development agreement the developer will build Adonis Road. Mr. Cassidy then showed Council a depiction of the Adonis Road improvements which were not included in the packet. It is basically a two- November 7,2017 Regular Council Meeting Minutes 5 lane roadway that gets extended down to Tangerine Road. We already have right of way at La Mirage Estates. For this part of the construction, the developer of The Villages of Tortolita would construct this at its own cost and would not get reimbursed for this work. The second piece of the construction are the improvements to the Marana interchange. ADOT controls the Marana interchange, so in the agreement it points out that they have to get their plans approved by ADOT. At this point, the town-preferred option for those improvements is shown on Exhibit A, a roundabout to the west side of the interstate, and a light on the east side of the interstate. For this, the developer will up-front the cost of building this. Under the impact fee program that was just discussed, this particular interchange is estimated at a cost of$6M as part of the impact fee program. So we will be collecting impact fees for this interchange, and we will use those impact fees to reimburse the developer the full cost of this interchange with no interest element. In addition to the impact fees, the developer will be reimbursed out of construction sales taxes from Adonis Road and construction of the interchange and from all construction within Villages of Tortolita. The last piece of infrastructure is the Tortolita TI itself. Under the development agreement, with all of these up-front obligations being taken care of by that developer, this new ordinance and development agreement would provide for reimbursement for up to half of the cost of the Tortolita TI, and that reimbursement comes from impact fees for the Tortolita TI, and we won't adopt impact fees for the Tortolita TI until they are ready to go. Under state law, that construction has to begin within 10 years after we collect impact fees, and we can't collect fees until we know that construction will begin. That is why the Tortilita TI wasn't on the Council's list of projects. once it gets close, then we will add it, and the developer gets reimbursed through people who pay the impact fee. And then if there is any other construction sales tax left from. within Villages of Tortolita after having paid for the Marana TI, that money will also be paid toward the Tortolita TI. Under the development agreement, the town would pay for up to half of that cost. We also anticipate that once they form a community facilities district for The Villages of Tortolita, they will also use that as a method to up-front the funding of that interchange. Mayor Honea asked if he understood that the town wouldn't put an impact fee into place until the interchange was ready to be built. Mr. Cassidy confirmed his understanding; however, if homes are built prior to that construction, those homes won't pay that fee. Under state law, for a period of two years after a subdivision has its first permit issued, no houses in that subdivision have to pay an impact fee. There is a lot of slippage with impact fees and a lot of money we are not able to collect. Fred Barnett spoke, noting that he is in favor of the development but has a few issues because of his ownership of a small piece of property at the tail end of the subdivision. There have been some problems in the past, and he is confident they will be taken care of, but he thinks they need more time. He has spoken to Del Post and Mr. Ziprich about them. Mayor Honea closed the public hearing. .Motion to approve by Council Member Ziegler, second by Council Member Comerford. Passed 6-0, with Council Member.Kai excused. A3 Resolution No. 2017-106: Relating to Administration; approving an interfund loan of up to $2,400,000 of unrestricted funds from the Transportation Fund to the wastewater Capital Fund for the Marana water Reclamation Facility (WRF) expansion project (Erik Montague). Mr. Montague stated that over a series of Council meetings, staff presented various scenarios related to necessary improvements to the wastewater treatment plant, expanding it from its current capacity to the 1.5 MGD to continue to allow development to occur. The cost estimates and financing alternatives that were provided to Mayor and Council were based on the cost November 7,2017 Regular Council Meeting Minutes 6 estimates and the percentage of design presented in the spring of. 2017. In April, the town issued some new money revenue bonds as well as some refunding revenue bonds. The new money piece of those bonds was sized based on the original assumptions on the cost of the plant between $22 -- 24M. Subsequent to the sizing of that bond deal, there were some additional cost increases that occurred primarily attributable to some of the electronic equipment as well as some plumbing and construction management costs that needed to be re-factored in based on some of the new costs of the plant. Based on the new money piece that provides the cash necessary to pay for the overall project, there is an anticipated cash shortfall of up to $2.4M. The overall contract has been executed for a guaranteed maximum price, and we are well within the overall contract and percentage of construction at this point, and we do not anticipate any increases in costs attributable to that GMP. This item is asking for Council authorization to formalize a cash loan from unrestricted sources to the wastewater capital fund to complete the project. It doesn't change the expenditure authority by what he has already mentioned. Generally accepted accounting principles in the U.S. allow for formalizing these loans when there is an expectation for repayment. Council Member Kai asked Mr. Montague to elaborate on the town establishing the expectation for repayment, and also will this impact our transportation--will we have a shortfall there later on? Mr. Montague responded that with respect to the transportation question, as part of the current year budget process, we anticipated or are hoping to see a surge or additional revenues associated with contracting sales tax attributable to the number of large projects that we have in our community. We anticipate that that will generate additional sales tax somewhere between $2.2M to $2.4M over the next couple of years. It is our hope that should actual sales tax come in as we projected based on that analysis, we should be somewhat held. harmless, but it's going to be dependent upon the actual activity. With respect to the repayment, there is the expectation that the monies will be reimbursed back to the transportation as they are able to from the actual collection in future years, or within 10 years or perhaps a little longer. It will depend on the actual cost of construction and the final loan amount as well as the town's ability to incorporate possible amendments to other fees that would help offset some of those costs. In response to a question from Vice Mayor Post, Mr. Montague stated that the town will receive interest, basically what is Galled co-mingled interest. Based on the actual earnings, we will associate negative interest earnings which is like an interest charge back to the capital fund, so they will be paying their proportionate share of shared interest. It should not be to the detriment to transportation to earn interest on those monies. Motion to approve by Vice Mayor Post, second by Council Member Ziegler. Passed unanimously. ITEMS FOR DISCUSSIONIPOSSIBLL ACTION DI PUBLIC HEARING: Relating to Development; release of biennial certified audit of the Town's land use assumptions, infrastructure improvements plan and development fees for the period of July 1, 2014 through June 30, 2016 (Starla Anderson). Mayor Honea opened the public hearing. Ms. Anderson noted that the audit is for the town's land use assumptions. In accordance with state statute, the town had the option of creating an advisory committee or providing for a biennial certified audit of the town's land use assumptions, beginning with the development fees adopted in August of 2014. The town chose to provide for a biennial certified audit. our outside auditors, Henry and Home, conducted the audit. They were required to review the collections and expenditures of 'impact fees for the projects within the plan and evaluate any inequities in implementing the plan and imposed the fees. They sampled 25 receipts and determined that the fees were collected and imposed in accordance with town ordinances. November 71,2017 Regular Council Meeting Minutes 7 They also sampled 20 expenditures and determined that the impact fees were spent for specific projects within the approved infrastructure improvement plan. At this time, there is no formal action required but Council may accept the audit report as presented. Mayor Honea closed the public hearing. Motion to accept the audit by Vice Mayor Post, second by Council Member Comedi)rd. Passed unanimously. 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). No report. 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 (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 7:49 p.m. by Council Member Bowen, second by Council Member Kai. Passed unanimously. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on November 7, 2017. 1 further certify that a quorum was present. ocelyn C. ronson, Town Clerk M A►RANA A7 November 7,2017 Regular Council Meeting Minutes 8