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HomeMy WebLinkAbout12/19/2017 Regular Council Meeting Minutes .. ..,'(-..,.,.�....,...'.�.�........fir....'••[r. MARANA A ESTABLISHED 1977 MARANA TOWNCOUNCIL OUNCIL REGULAR COUNCIL MEETING 115 S 5 W. Ci PIZESENTATIONS P1 Relating to Budget; presentation of independent auditor's report and final results of the Town's General Fund and certain other funds for the 2016-2017 fiscal year (Erik Montague). Mr. Montague began by noting that in October the preliminary year-end results of the general fund and other selected funds were presented to Council. Tonight's presentation is to go over the final numbers and transmit the town's annual comprehensive financial report, the annual expenditure limitation report,, and the single audit report. All of those items were attached in the Council packet. The auditors are Henry + Horne, selected through the public procurement process. This is the fourth year of a five-year contract with them. The result of the audit was to issue an unmodified qualified opinion. No issues or disputes arose as a result of the audit. There was one adjustment identified by town staff. The town's voter-approved alternative expenditure limitation for 2017 was $170.1M. Actual expenditures were $97.5M. In the single audit report, federal expenditures were listed at $995K, and the Schedule of Expenditures of Federal Awards (SEFA) was issued for 2017. The Independent Auditor report was compliant in all material respects. There were no questions or concerns regarding costs. Regarding the final results for the general fund, the most important is probably the changes in fund balance. The year ended at just over $2M, a slight improvement over the number Mr. Montague presented in October. This means we will be adding back to reserves by the end of the year at just over $25M, This number is an overall health indicator. Some of these funds will be deployed in future years for public improvements or other major projects. The Highway User Revenue Funds (Ht.TRF') are very important for our community. This audit year was the final year we had personnel included. In the current fiscal year, all personnel was moved out of that fund. We anticipated using some of the HURF funds for projects that did happen. We started the year at about $1.8M, and we will end the year at about $1.4M. We expected about a $500K dip into fund balance due to some minor adj ustments and it ended up a little less than that. The bed tax fund accounts for the discriminatory portion of hotel taxes. There was no change. At the end of the year we added back about $300K to fund balance, so we are pushing close to $1M in the bed tax fund. These monies are used for tourism and various programs associated with tourism. With respect to the 1/2 cent sales tax, these numbers did not change significantly from October. We budgeted for a significant dip in fund balance based on possible activity. But due to the actual timing of the expenditures for that project, we didn't spend as much as we anticipated. That money was added back to reserves or fund balance, and at the end of the year we are just north of$8M. We are committed to try to cash. fund the public safety facility, and we anticipated about 4 1/2 years of tax collections. We are lagging within about a month. As of last month, we are within 2 '/2 percent of what we estimated to collect. Around November, we are anticipating for FY 2018419 to rescind the tax and because we will have collected our $ISM. The transportation fund accounts for 75 percent of our construction sales tax. We had anticipated dipping into reserves or fund balance, but we did not and actually added some back to bring us just north of$13.8M. A significant portion of those dollars will be used for the Tangerine Road project. This is a very important source of revenue for the town. December 19,2017 Reguiar Council Meeting Minutes 2 For the enterprise funds — water, wastewater and the airport — each of them show operating losses and are primarily attributable to the non-cash use of depreciation. As the assets are acquired, they are not expensed in the year of acquisition, but rather over their useful life. Council Member Bowen noted that with respect to the enterprise funds' operating losses/ depreciation expenses, they are not reflective of any actual cash going out, but they do reflect real costs to the town, so do we bank money in order to replace these assets as their useful life ends? Mr. Montague responded that we don't have a fully dedicated replacement program for M j or assets — assets that are subject to actual depreciation, but major assets are identified as part of the multi-year capital improvement project (CIP) process. For instance, aging equipment such as a portion of a water system would be part of a future CIP project, and since it would be replacing part of an existing facility, it would be paid from future rates as part of a rate plan. Anything that is growth-related would be new or expansion of an existing facility, and we have traditionally relied upon impact fees and development-related fees for that. CONSENT AGENDA. Motion to approve by Council Member Bowen, second by Council Mepmber Igor. Passed 4-0. C1 ordinance No. 2017.028: Relating to Development; extending the time for submitting waivers under Marana ordinance No. 2017.023, which adopted amendments to The Villages of Tortolita Specific Plan and authorized the Mayor to sign The Villages of Tortolita Development Agreement; and establishing an effective date (Frank Cassidy) C:2 Resolution No. 2017-1.10: Relating to Public Works; approving and authorizing the Mayor to execute a public improvement participation agreement for the construction of the Patel driveway apron as /part of the Cracker Barrel Roadway Restoration Project(Frank Cassidy) C3 Resolution No, 2017-111: Relating to development; approving a release of assurances for Saguaro Bloom Block 3 and accepting public improvements for maintenance. C4 Resolution No. 2017-112: Relating to Real Estate; approving and authorizing the Mayor to sign the Purchase Agreement with Metropolitan Domestic Water Improvement District for the sale of certain Town property rights in the vicinity of the Marana Regional Airport (Frank Cassidy) C5 Resolution No. 2017- 113: Relating to the Police Department; approving and authorizing the Interim Town Manager to execute a Subgrantee Agreement with the Arizona Department of Homeland Security for purposes of receiving funds under the 2017 operation Stonegarden Grant a Program Lisa Shafer) C6 .Approval of December 5, 2017 Regular Council Meeting Minutes (Jocelyn C. Bronson) LIQUOR LICENSES Ll Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an Acquisition of Control Series #7 Beer and Wine Bar liquor license application submitted by Stephen A. Miklosi on behalf of Breakers 95, located at 8555 December 19,2017 Regular Council Meeting Minutes 3 W. 4'angerine Road, Marana, Arizona 85653 (Jocelyn C. Bronson). Presented by Ms. Bronson, who noted that the application had been properly reviewed and posted. No protests were received. Staff recommends approval. Motion to approve by Council Member Kai, second by Council Member Bowen. Passed 4-0. BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al Ordinance No. 2017,02.9-, Relating to Development; adopting development impact fees for street facilities, parks and recreation facilities water facilities., and wastewater facilities; accepting and approving the technical reports identifying benefit areas and facilities needs; modifying the definitions of"General office land use category" and "Medical facilities land use category" in Marana Town Code Section 17-17-3, and providing an effective date (Keith Brann). Mr. Brann presented this item and noted that it is the final step in the impact fee adoption. He gave a brief recap of the process beginning with the land use assumptions and infrastructure improvement plans which were adopted by Council on September 19, 2017. The major stakeholders in the region have attended meetings on both July 14 and October 24. Mr. Kmiec also gave a tour of the wastewater treatment plant to SAHBA personnel. The public hearing was conducted on November 7. The comments received to date revolved around the land use assumptions. There has only been one significant change in the report since it was posted, and that was a change in the definitions — mainly in the street categories. That was to take the urgent care and clinic categories and make them more akin to doctor's offices than they are to full- blown hospitals. The findings from trip generation to these facilities don't rise to the level of hospitals. We are further defining what really are hospitals. Accompanying this, Mr. Cassidy is also modi-fyin g the language in the town ordinance that deals with impact fees. Mr. Brann further noted that the numbers haven't changed since the public hearing, If approved tonight, final implementation of the fees will become effective on Monday, March 5, 2018 following a 75-day period. Some fees are going up, some fees will be re-implemented. For fees that are being reduced, they are being set at the 30-day period, which is the normal or standard referendum period for a new fee or ordinance. The 75-day period has a moratorium that is built into state law. Essentially, it builds some certainty into the development community such that if they start or build a subdivision, they can depend on the fees being in place at least two years from when they start. In the case of a subdivision, it is two years from the date the first building permit is issued. Anyone who has a first building permit issued before March 5, 2018 will have whatever the fees are today for two years. The date of commercial goes from the date of approval of the development plan. Mr. Cassidy- then went over the finer points of the ordinance. The adopting ordinance that staff is asking Council to approve is a little different from the one that was in the packet. As written in the packet, all of the fees went into effect on March 5, 2018. Upon further discussion internally, staff felt that it was appropriate for all of the fees that are going down to go into effect on the effective date of the ordinance, which would be January 19, 2018. The fees that are going down are the Northeast Street Facilities Impact Fee, the sewer fee and the water -fee associated with Saguaro Bloom, and there are a couple of others. All the other -fees would become effective on December 19,2017 Regular Council Meeting Minutes 4 March 5, 201 S. 'Fhe ordinance, if approved and signed by the Mayor tonight, will become effective January 19, 2018. Motion to approve by Council Member Bowen, second by Council Member Comerford. .Passed 4-0. A2 Resolution No. 2017-114: Relating to Real Estate; approving and authorizing the Mayor to execute a farming right-of-way license for Gladden Farms 11 subdivision (except Block 29); and authorizing the :interim Town Manager to execute similar farming right-of-way licenses (Frank Cassidy). Mr. Cassidy noted that -farming right-ofway licenses have been done for some time, Staff wanted to create a new form because we now have a sewer line in one of the major rights-of- way, and the concern was how far to stay away from the sewer line, and if we do that, shouldn't we recognize that this is actually a mutual benefit and not charge $1,000 for a license. As we used to do it, we just entered into the license with the farmer, and that doesn't make any sense because you can't just farm the right-of-way. You can only be farming the right-of-way if you're farming the adjacent property. It's a right that goes with the adjacent property, and if that adjacent property owner decides to lease their property to somebody else for farming, the new farmer ought to get the benefit of the right-of-way license without having to come back to the town and pay another $1,000 and enter into a new farming license. So, the way we are going to do it now is that the license will basically run with the land for as long as the farming is occurring on the land. There are some basic rules that when there's a sewer line, you have to stay 35 feet away from either the bottom of the access road or 45 feet from the sewer line itself: In the model ordinance Mr. Cassidy provided, staff wanted Council to see the gladden Farm license as a template, and if Council is okay with it, staff would ask Council to authorize the town manager to just sign. these as long as they are in the sarne fore., and as long as the town engineer and the town attorney say that they are substantively the same. One change that Mr. Cassidy is asking Council to remove the word "interim" before town manager, so that the resolution authorizes the town manager to execute similar farming right-of-way licenses. Somewhere it got changed so that it says the interim town manager. This is intended to be a permanent resolution authorizing anybody in that spot, which means the interim town manager, and eventually the town manager to execute the licenses. we ultimately think this is better for the town to have farming happening in a right-of-way in a recorded subdivision rather than to try to keep farmers out and have to deal with the weeds. Matron to approve with the change as recommended by Mr. Cassidy by Council Member Bowen, second by Council Member Kai. .Passed 4-0. 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 (Jamsheed Mehta), Mr. Mehta noted that: the next session of the state legislature begins next month, and the items of interest to the town would be the Community Facilities Districts and what: clean--up occurs with it, construction sales tax — we have been trying to defend our position for a few years, and we hope to continue with December 13,2017 Regular Council Meeting Minutes 5 that -- and a new item, which will be taxing of online goods. Staff will keep Council posted as to who is proposing the legislation. EXECUTIVE SESSIONS. Motion to go into executive session on item E2 bCouncil Y Member Kai, secontl by Council Member xjven at 7:24 p.m. Passed 44). Pursuant to A.R.S. § 38-431.03, the rlown 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 oil this agenda. E2 Executive session pursuant to A.R.S. § 38-431.03(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. Council returned to the dais at 7:49 p.m. Mr. Cassidy asked for authorization to move forward with getting an independent fee appraisal on the Adonis Mobile Home Park wastewater conveyance system property. Motion to ttj)j)rove authorizafion by Council Member Bowen, .,vecond by Council Member Kai. 11assett 4-0. f'UT t 1.0' 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 1.-he agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana 'Yown Code Section 2-4-2(13). ADJOURNMENT. Mayor Honea wished everyone a Merry Christmas and adjourne(I tile meeting at 7:50p mi CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on December 19, 2017. 1 further certify that a quorum was present, -Angola""i ocelyn onson', Town Clerk AR A►NA AZ FSTABLISHFI') 197/ December 19,2.017 Regular Council Meeting Minutes 6