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HomeMy WebLinkAbout02/19/2019 Regular Council Meeting Summary MinutesXS& MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers February 19, 2019, 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 John Officer, Council Member. Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL: Mayor Honea called the meeting to order at 7:00 p.m. Town Clerk Cherry Lawson called roll. Council Members Officer, Bowen, and Ziegler, (Absent). A sufficient number of council members were present constituting a quorum. PLEDGE OF ALLEGIANCE/INV ()(-,'-'ATION/MOMENT OF SILENCE: Mayor l''lone a the Pledge of Allegiance followed by a moment of silence. APPROVAL OF AGENDA: Vice Mayor 1 --lost n1totioned to approve, with a second provided by Council Member Kai. The motioned passed, 4-0. CALL TO THE PUBLIC Jodie Dvorak stated she had been recently elected to serve as the president of the Continental Ranch Veterans Club. She is seeking Council's approval to change its February 19, 2019 Regular Council Meeting Minutes Summary current name to the Marana Veterans Club, and use the Town of Marana logo for their promotional items and documents that will benefit the club. The purpose is to be able to reach more veterans beyond the Continental Ranch community. Chuck Martin he is a frequent visitor to the area as a Planner for Saguaro Bloom and the Gladden Farms community, as well as being a cyclist. He commented on the agenda item D1 the extension of the loop to connect into the Town of Marana. He wished to offer his support as it is a great opportunity for the Marana community. H. James Tripp commented on having attended meetings on the annexation of public lands at Thornydale and Tangerine in Oro Valley. He read the site-specific plan from. September stating that the annexation is an Oro Valley annexation inside of. the Marana School District. Marana had agreed to leave it in the Marana School District and take on the cost of the students in the K-12 grades, at approximately 1700 students at $9,000/year in Arizona, equally to tens of millions of dollars per year. He asked whether Council could provide a status update on the cost to the Town and its taxpayers. Jack Neubeck stated he is on the board of MHC and one of its founders. He announced some 'good news' to Council stating they will host a major event on March 9 a Balloon Glow and wine Tasting from. 5pm to 7 pm at the old rodeo ground, south of Marana Middle School. He invited Council and the public to come out to attend the event. Mr. Neubeck also acknowledged El Stolmaker for his excellence in the community and wished him well in his retirement. PROCLAMATIONS PR1 Proclamation recognizing the dedicated service of Ed Stolmaker, retiring Marana Chamber of Commerce President & CEO, for his many years to the Marana community (Cherry L. Lawson) MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS There were no reports offered by the Mayor Honea and Council Members. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Jamsheed Mehta, Town Manager announced, in October 2018 the Council chose to rescind the half cent sales tax that was dedicated to the Police Department building. He stated at the end of December, Marana exceeded $S0 million ($$0.3 million collected) that was the Council's target amount. He also congratulated those who worked to make that prediction for the Council, including Deputy Town Manager Erik Montague who was the Finance Director at that time. February 19, 2019 Regular Council Meeting Minutes Summary 2 He announced the upcoming events with the Parks Department MOVE Across Two Ranges between Marana and oro Valley. It is scheduled for March 2 and the registration is already sold out, which is a success for the event. cape chase Fun Run is an Adaptive Fun Run that will be held on Saturday, March 9 from. 5:00 am to 11:30 a.m. at ora Mae Harn Park which is open to all persons especially persons with physical challenges. PRESENTATIONS P1 Relating to Budget; presentation of second quarter results (July -December) for the Town's General Fund and other selected major funds for the 2015-2019 fiscal year (Ylannis Kalaitzidis) Yiannis Kalaitzidis, Finance Director provided a PowerPoint Presentation (on file in the Toz.i?n Clerk's Office) on the second quarter results for the Towns General Fund and other major funds 2015-2019 fiscal year announcing that all of the Town's revenue funds were at or above the Town expectations. CONSENT AGENDA: Vice .Mayor Post motioned to approve the Consent Agenda, and Council member .tai seconded the motion. The motion passed, 4-0. C1 Resolution No. 2019-010: Relating to Development; approving a preliminary plat for Moonlight Canyon at Saguaro Ranch, Lots 1.-43, Blocks 1--2, and Common Areas "A", 11B11/ "C-1" and "c-2" generally located one mile north of the north terminus of Thornydale Road (Brian D. Varney) C2 Resolution No. 2019-011: Relating to Development; approving a final plat for Madden Farms Blocks 40 & 41 Lots 1-119, Common Areas A-1 - A-11 and common Areas B-1 - B-3 at the northeast corner of Midfield Road and Tangerine Road (Steven E. Vasquez) C3 Resolution No. 2019-012: Relating to Police Department; authorizing the Chief of Police to apply for grant funding from the Governor's Office of Highway Safety for the purchase of equipment and the funding of overtime for the Marana Police Department for fiscal year 2019-2020 (Starla Anderson) February 19, 2019 Regular Council Meeting Minutes Summary 3 C4 Resolution No. 2019-013: Relating to the Marana Regional Airport; approving and authorizing the Town Manager to execute an Airport Development Reimbursable Grant Agreement for Grant Number E9M1 G01 C between the State of Arizona by and through the Department of Transportation and the Town of Marana for the purpose of aiding in f financing a Project entitled "Rehabilitate: Twy B; Terminal Apron; GA Apron; and jet/ Transient Apron" for construction of the Apron and Taxiway Rehabilitation. project (Lisa Shafer) C5 Resolution No. 2019-014: Relating to Utilities; approving and authorizing the Water Director to sign Agreement No. 18--DSR-12868 between the United States Department of Energy Western Area Power Administration Desert Southwest Region Parker -Davis Project Pacific Northwest -Pacific Southwest Intertie Project and Contractors for Joint Planning Agreement (John Kmiec) C6 Approval of Regular Council Meeting Minutes from February 5, 2019 and Approval of Special Council Meeting -Council Connections Minutes from February 9, 2019 (Cherry L. Lawson) LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION ITEMS FOR DISCUSSION/ POSSIBLE ACTION D1 Relating to Parks & Recreation: Discussion of the history and deal points associated with the acquisition of the CalPortland segment of the Santa Cruz River Shared Use Path (Jim Conroy) Jim Conroy, Parks &Recreation Director, provided a PowerPoint Presentation (on file in the Toum Cleric's Office) on the history and deal points associated with the CalPortland segment of the Santa Cruz River Shared Use Path. He introduced Alejandro Angel from Psomas who presented the design of the area. He outlined the context of the project to include the following Key Issues: • Crossing Avra Valley Road o Reconfigure existing bridge to cross on south side of the road o Cross under Avra Valley using existing soil cement ramp February 19, 2019 Regular Council Meeting Minutes Summary 4 o PCDOT Bridge Approved by Pima County COT Director 07/18 • Grade Separation from Haul Road &Conveyor o Preferred Alternative: ■ Underpass at Haul Road for mining trucks ■ Underpass at Conveyor for mining materials o Least utility impacts o Least acquisition from CP o Limits visibility of CP plant o Able to drain underpasses without pumps o Preferred by CalPortland ■ Site Security o Liability concerns ■ Indemnification requested ■ Marana to acquire property in fee except at Haul Road, conveyor (CalPortland to retain ownership, Marana to purchase easement) o Minimize visibility of plant ■ Initial request -- wall for 1.2 mile frontage ■ Agreement - Z mile fence, 0.2 mile wall o Access to conveyor and path closures when needed for maintenance 0 8 -ft fence with slats and razor 0 8 -ft wall with razor wire • Construction Cost (estiniate) o Fencing and walls $ 500,000 o Underpass, Path Avra Valley Bridge 1,200,000 o Contingency 300,000 o Construction cost Total 2,000,000 o Design o Land Acquisition (approx. 3 acres) Next Steps in the Process o In advance to a formal acquisition agreement seeking Council direction on proposed acquisition due to the indemnity and construction elements that may exceed the deal points of a typical town right--of-way acquisition. If directed by Council to move forward, the Town would move forward in pursuing the formal acquisition agreement. o Staff would formally secure the $500,000 commitment that Pinta County has verbally obligated to this project Mayor Honea asked if the Town receive the $500,000 from. the County Flood Control, would that fulfill the obligation to complete the project. Mr. Conroy stated they are projecting that the $500,000 would allow them to accomplish the project. February 19, 2019 Regular Council Meeting Minutes Summary 5 Mayor Honea asked Mr. Cassidy whether the indemnity of the agreement, that is, the Town owns the right-of-way would the Town be the responsible party. Mr. Cassidy replied stating that is true. The basic foundational element with CalPortland was they wanted the Town to recognize that this is treated as a federally regulated purpose as an act of mining area. Bringing the public to an active mining area creates potential hazards due to the proximity, for example: if there is a mining truck that drives by and a rock is stuck in its wheel and becomes free and lands on a pedestrian or bicyclist head, CalPortland want to ensure that Marana indemnify them for that. However, there are events that the Town would not indemnify CalPortland for such as intentional acts. Before CalPortland would actively engage with Marana, his office had research whether the Town could do that. His office did conclude that Marana does have authority to indemnify especially under circumstances like this; that is, only if Council wish to pursue this. Mayor I ion.ea asked whether the Town will need to clear authority with the risk pool in order to engage with CalPortland. Mr. Cassidy replied stating staff has made contact with the risk pool. Although they do not like deals of this type, any deals that impact our risk level, could potentially affect the cost to the Town. They have not indicated that this would occur just by entering into this deal. Council Member Kai asked in the unfortunate event CalPortland mining trucks swerve and loses control of the truck and hurt someone around the tunnel area, would the Town waive that. Mr. Cassidy stated that would be determined by the level of fault of the activity (i.e. gross negligence or an intentional act), the indemnity would not cover that. Council Member Kai suggested the Town add some warning signage in that area to alert the public. Council Member Comerford asked whether there are any limitations that the Town can place on CalPortland, such as in the area of the overpass —slow down, speed limit, or pedestrians in the area. Mr. Cassidy stated he believes Marana could; however also believes, that the federal mining regulation has severe restrictions on that as well. Mr. Conroy reiterated the direction being sought by Council includes: (1) In advance to a formal acquisition agreement seeking Council direction on proposed acquisition due to the indemnity and construction elements that may exceed the deal points of a typical town right-of-way acquisition. (2) If directed by Council to move forward, the Town would move forward in pursuing the formal acquisition agreement. Staff would formally secure the $500,000 commitment that Pima County has verbally obligated to this project Vice .Mayor .Post motioned directing staff to move forward on the preliminary issues as was discussed by Jim Conroy. Council Member Kai seconded the motion. The motion passed, 4-0. February 19, 2019 Regular Council Meeting Minutes Summary 6 D2 Relating to Development; presentation, discussion and direction regarding proposed amendments to the Town's Policy Guidelines and Application Procedures for the Establishment of Community Facilities Districts (Erik Montague) Mr. Montague provided a presentation on the Community Facility District (CFD) as was previously discussed in January. The Town had considerable conversation and recall a significant amount of input in terms to those items that would come back to Council for follow-up discussion. Most of this presentation has been modified to deal with the elements of feedback staff received from the January presentation. He provided a brief recap of previous study sessions and direction that was received from Council, along with optional policy amendments for Council consideration as well as the next steps. He would not speak on some of the required elements of state law as they are couLf orming. Then identify additional feedback that will later be brought back to Council in a presentation. Community Facility District (CFD) has previously been defined; reasons why a CFD might be created; had discussion of the importance of a sound CFD policy as well as covered required and optional policy changes. From that feedback, some general themes came from Council as provided below: • Importance of homeowner education and acknowledgement when moving into a CFD o Education, disclosure and recordkeeping (Optional Policy Amendments - Draft Language) ■ A disclosure form which will be used to explain the existence of the CFD ■ NEW - Recordkeeping processes for retaining all signed homeowner CFD acknowledgment disclosure statements. Evidence of signed forms shall be filed with the Town ■ NEW - Increased information about CFD's included in promotional materials. • CFD's with extraordinary infrastructure requirements versus routine infrastructure o Developer's equity in project (Optional Polio Amendments -Draft Language) ■ A description of the proposed equity contribution (enhanced infrastructure) from the applicant/ landowner and a calendar showing the time of such equity contribution. • Conservative approach served us well during economic cycles o Impact of debt obligation (Optional Policy Anzendnzents -Draft Language) February 19, 2019 Regular Council Meeting Minutes Summary 7 • An analysis which addresses the impact of projected property takes and property tax rates, special assessments, fees charges and any other costs that would be borne by property owners in the CFD. ■ Discussion whether costs will impact the marketability of the development ■ comparison of proposed tax rates or charges within the proposed CFD contrasted with the tax rates and changes in adjoining and similar areas outside of the proposed CFD ■ Avoid disproportionally burdening homeowners with CFD obligations o General obligation (GO) Target Tax bate and Protections (Optional Policy Aniendnien is - Draft Language) ■ Applicant will be required to enter into a standby agreement where they will contribute an amount annually sufficient to pay the difference between the revenues produced by the target tax rate and the actual CFD debt service corning due in that fiscal year/ ■ The security shall remain in full force and effect until such time as the CFD board of directors, exercising their sole discretion, determines the assessed value of real property in the CFD is sufficient to generate ad valorem taxes at the preestablished CFD tax rate sufficient to pay the actual CFD debt service. ■ Homeowners may accept a slightly higher obligation if they see the value in parks and other infrastructure o Possible Policy Statement (Optional Policy Aniendnients) ■ we want parity between all CFD's for routine infrastructure. However, in circumstances in which CFD's have extraordinary infrastructure requirements, we would allow the extraordinary portion of the obligation to be higher than a CFD with only routine infrastructure. ■ The increase obligation from extraordinary infrastructure could be in the form of: o Go target tax rate, and o SA on a per lot basis Vice Mayor Post asked whether Mr. Montague was going to set the range within the policy, or is this how the policy will look. Mr. Montague stated the Town will have a familiar chart with some figures that staff will pencil in and/or obtain direction from Council. Until the extent to include what is appropriate of those numbers from. Council in terms of policy, staff will move in that direction. Mayor Honea asked whether this policy change would need to be approved by the CFD Board for each project if they would try to increase .for extenuating circumstances. Mr. Montague stated the Town's policy should be sufficient to be able differentiate between a routine CFD and an extraordinary CFD case, and the rules would apply to that extraordinary CFD. In this presentation, he would highlight some of the caps and February 19, 2019 Regular Council Meeting Minutes Summary 8 limitations that Council would hopefully be comfortable with. one concept would be, the maximum annual contribution regardless of whether it is a Go or Special Assessment is acceptable to Marana community. Is that $1,000 or $1,100 per year for example, for a tier two extraordinary CFD circumstance? or is it something different. The Town is seeking guidance from Council in terms of its comfort level in setting this rate. Mr. Montague provided an overview of routine infrastructure and extraordinary infrastructure, possible rate and assessment structure. • Routine Infrastructure either Tier 1 (Routine) or Tier 2 (routine and Extraordinary) o Go emphasis for routine requirements o Provides parity between all CFD's • Extraordinary or "Special" Infrastructure Requirements (Tier 2) o Minimum. Go target tax rate the same as for CFD's with only routine infrastructure o Special Assessments (SA) offset some portion of the "special" infrastructure requirements. He explained the impact of Proposition 117 as the legislation that passed impacted the value at which new homes appear on the tax roll. • Previous home values placed on the tax roll at 80% of its estimated fair value ■ Prop 117: actual limited values placed on tax roll appear to range from 60 --80% of estimated fair value o Homes in Marana are averaging close to 70% Vice Mayor Post inquired of the CFD's the Town has being $2.50 plus maintenance policy whether it was sufficient to make payments. Mr. Montague replied stating it was only recently enough to make the payments narrowly to make the payments primarily due to the restructuring of Gladden Phase 1 CFD refinancing. The Town advanced the savings achieved over the first three years. Developers are very concern for the next tax year over its ability to generate tax benefits to make that debt service payment, based on the $2.50 rate. Vice Mayor Post asked whether the Town has to raise the amount in order to meet the Towns policy. Mr. Montague stated in this circumstance, it is particularly complicated as the Town needed to lower its tax rate this year, because no more debt had been issued. State law requires that governmental units cannot over the amount to service the debt to lower the rate. It will be a combination of increasing it to at least $2.50 or higher in order for them to generate the tax revenue. Vice Mayor Post asked whether the target rate of $2.50 needs to be set aside as it is not sufficient to pay down the debt service. Although the Council has set a target rate of $3.00, that is what potentially needs to occur so that the debt can be serviced. Mr. Montague stated the $2.50 rate was set as it was the amount that the Marana community was comfortable with in requiring a future homeowner to contribute towards the payment of the CFD. February 19, 2019 Regular Council Meeting Minutes Summary 9 Mr. Montague stated in previous discussions, he shared with Council the range of the CFD of $2.00 to $2.50 to $3.50. Each jurisdiction has selected the range that is right for their communities. The decision establish the rate has to be what is acceptable for the Marana community. From a public policy standpoint, the $2.50 is on the lower end; however, the $3.50 is on the higher end of the spectrum. Vice Mayor Post commented on the range as that is what is being targeted. Mr. Montague concurred stating, once the Town has issued that debt, the Town is obligated to levy an amount required to make that payment. Marana has taken great care to ensure the right structure is in place to protect the homeowner. In the case of Gladden 1, the Town had standby a contribution agreements, as well as letters of credit, and had funds deposited into an account that they had access to. Vice Mayor Post asked whether that was the reason why the Town had a hard -fast rate, as the Town had other people who were able to make up that difference; which may not be the case in the future. Mr. Montague concurred commenting on the recession, and how the developers met their obligations to make those payments thereby protecting the homeowner. That is the protection that Marana requires to protect the homeowner and have served its purpose, and the Town would look to maintain. Vice Mayor Post asked whether it would be best to set a dollar amount rather than a tax rate. Mr. Montague stated in the case of the General obligation it would not be an easy thing to do, as it is an Ad Valorem Tax. It is based upon the actual value of the levied price of the home. with a house built on vacant land of $250,000 to $500,000 there will not be an easy way to determine it with an Ad Valorem for a flat Go. Vice Mayor Post asked whether it would be best to proceed with a target tax rate versus a set dollar amount. Mr. Montague stated that he is not aware of any entity using other methods of determining a more meaningful way to set the cap of the amount to levy. Council Member Comerford stated it limits the amount the developer has to take out a loan, as there will likely be a cap on the amount that can be borrowed. Mr. Montague concurred with Council Member Comerford comment stating. As part of the application process, developers are required to provide a cash flow of what their estimated absorption is for how they expect the development to occur of sales by year, the estimated value of the price point for homes built, their assumptions for assessed valuation— depending upon what that evaluation is dependent on how they will generate enough cash to issue bonds, and recoup the eligible portion of infrastructure. The higher the target tax is, the better they would be able to generate cash in a cash flow cycle. Council Member Kai asked whether the estimated tax rate is set by the Assessor's Office annually for. homes. Mr. Montague replied stating Pima County Assessor's Office establishes rates by its methodology according to state statute. He is not aware that those assessed rates would materially change according to the sampling that they February 19, 2019 Regular Council Meeting Minutes Summary 10 had performed from 60 to 80%. The 80% was on a custom home lot in a track home development. Mayor Honea stated Marana was one of the first communities in Arizona to set CFDs. One of the reasons Council set the $2.50 tax rate was to prevent developers from borrowing extensively against the CFD as it would lead to financial trouble for the developers. He feels as though the Town needs to have a base to work from, as he prefers the dollar amount, such as $1000 per year. Though you may not always get the exact amount, you will likely get close or go over the amount as the adjustments occur. He expressed concern for leaving the amount open as homeowners may not be able to afford the overage charge on a monthly basis. Mr. Montague provided within his presentation a slide of Comparison of Routine and Special Infrastructure of assumed rate (available for viezc)ing in the Clerk's Office) example. The average fair market value of a home in Marana $216,000 to $218,000 according to work performed by Steve Fold. Staff believes they could likely frame this in a maximum amount. However, it would not be an absolute, it would be based upon information that they were provided at the lowest price point within a community— that being the worst case scenario that would be a starting point. As the value of homes increase over time, the homeowner would likely be above a $1000 per year. Some communities try to set the rate as an overall percentage of takes or of the home, but it becomes a problem in the long run. Mayor Honea stated the $1,000 fee can be established on a $260,000 home, but when considering a home over $300,000 those homeowners will pay much more than $1,000 annually. Mr. Montague, if Council set the minimum payment based on the lowest estimate contribution of $1000 of the price point amount in that community, a home that is valued at or above twice the average price of home on the Ad Valorem tax will pay significantly more, and would be above the $1,000. He is not aware of a process to ensure that everyone in a community pay not more than $1,000. It is not practical. Mr. Montague presented a slide requesting feedback and direction from the Council (available for viev4ng in the Clerk's Office). Vice Mayor Post inquired policy and whether the development and whether the community would have all necessary infrastructure including interstate and sewer plants. Mr. Montague stated he is not sure whether there will be major sewer infrastructure at this time. Vice Mayor Post stated the Town is looking to rebate construction sales tax, and impact fees. Mr. Montague deferred to Town Attorney Frank Cassidy for clarification. Mr. Cassidy stated the Marana interchange is in the current IIP. Under the Development Agreement the Town would also put the Tortillas Interchange into the III' when its construction is imminent. The reimbursement from the impact fees would be to pay for half of the cost of the interchange that is not covered by the CFD. Vice Mayor Post asked for clarification of how that process would work. Mr. Cassidy stated February 19, 2019 Regular Council Meeting Minutes Summary � � he was not exactly sure, however believe that some form of reimbursement would cover the Town's portion of that interchange through collected impact fees from properties other than the Tortilla Village. Vice Mayor Post stated he like the idea of setting a target annual rate although he appreciates there will be some level of difficulty in establishing it. It is a rate that can be budgeted within most families that they come to expect on a monthly basis. He asked how the rate be presented to the potential homebuyer. Mr. Montague stated the disclosure law covers some of the information being presented based on the rate and valuation of the home. He asked for clarification based on an annual maximum targeted rate, for a CFD with an extraordinary infrastructure requirement to establish an annual cap. Vice Mayor Post stated he is referring to a target cap to provide staff, the developer and others room to work within. He asked whether there is some flexibility to vary between Go's and SA's, providing examples of a scenario between a requests for Go vs. SA. Mr. Montague stated staff is seeking that type of feedback from the Council regarding this measure. Vice Mayor Post, would like see the Town offer some type of flexibility as he understands there is some advantages and disadvantages for funds with the developers as well as to the homeowners. He would like to see Special Assessments used as those assessments are immediately being paid with the sale of the home, as opposed to sometime later. I ie would like to see some flexibility offered to the developer so that they have access to funds of no more than $100 per month. That would be his upper limit. Vice Mayor Post referring to Council Member Comerford stated for clarification that rate is based on extraordinary CFD's where that dollar amount is appropriate. However on the non -extraordinary infrastructure properties, the rate is fine. Mr. Montague commented on the Excel Spreadsheet that provides different scenarios of a target amount that is assessed based on different assumptions. He asked whether Council would be comfortable with a $6.00 valuation based on the conversation in order to get to that $1,000, and are okay with not having SA's, but have a Go tax rate of $6.00 per $100. Vice Mayor Post concurred with Mr. Montague explanation. Council Member Comerford, there is a routine CFD and an extraordinary circumstance CFD --- she asked whether there is a problem with the Go and the SA. There are persons who come to Marana to retire, who may decide to pay the special assessment at the time of the purchase of their home and prefer to not have a Go to pay. If an SA is offered, the potential buyer can pay that now rather than over time. Mayor Honea stated the SA are financed as well as the Go. The developer would get the funds upfront, and there would be a bond for the homeowner as well. Mr. Montague provided clarification of the two assessments that is placed on the lot. once the debt has been issued, there is an obligation of an annual payment until it is pard off. February 19, 2019 Regular Council Meeting Minutes Summary 12 Council Member Kai, asked with homes being reduced in size, would that generate increase revenue with special assessments per lot. Mr. Montague, not necessarily. The limiter would consist of 1] maximum amount of assessment the Town would allow on a lot, and 2) value of the land and any improvements that are factored on that land that is allowed by the Town. Mr. Montague clarifying the direction provided stated, there may be interest in the original concept of maintaining uniform Go tax rate for routine infrastructure CFD where there are special circumstances or regular routine. Council would be open to Go as long as the Town does not exceed the targeted maximum. contribution. Council will need to discuss is the significantly higher tax rate of $6.00 in a community. Vice Mayor Post stated the amount may on the surface appear to be high; however, the amount is essentially the same. Mr. Montague, staff is seeking direction from Council on the basis of the policy, as the information presented has been to maintain consistency and parity between CFD for routine infrastructure at the same Go rate. Under Special Assessment Bonds it is intended for tier 2 only depending upon the direction of Council. Council may wish to establish a per lot cap, a not to exceed amount. Vice Mayor Post proposed the following direction, for ordinary CFD, Go's. Mr. Montague stated in our policy we can say the preferred mechanism for routine infrastructure under Go scenario would be to maintain the actual overall target tax rate of a particular amount. Vice Mayor Post concurred. Mr. Montague stated GO's would be preferred. Council Member Kai asked whether special assessments would still be available for large projects. Mr. Montague, if this ,will be carried forward, the policy could state under our preferred CFD the mechanism to finance that is through. General obligation debt with a target tax rate of some amount. This provides some form of flexibility there. Under extraordinary circumstances there could be a combination of Go and Special Assessment, Council would need to determine those limits. Vice Mayor Post asked how the Town would like to have the rate established. Mr. Montague stated it could be in any combination. However, an overall cap of an amount not greater than some dollar amount, or a maximum targeted established contribution of some dollar amount. Vice Mayor Post, the preferred is not more than $100 per month. Mr. Montague, asked about the value of the lien piece on the Value to Lien Ratio SA Bond. Mayor Honea, expressed concern over the ratio being offered as lesser valued properties for borrowing places the community in a riskier situation. The Town should try to keep the rate up to 4:1 so to assure developers has a vested financial interest. council Member Kai concurred with Mayor Honea in keeping the ratio at 4:1, rather than a reduced ratio. Mayor Honea recommended directing the Town maintain the current rate of the CFD. Council Member Kai concurred. February 1.9, 2019 Regular Council Meeting Minutes Summary 13 Mr. Montague, related to the GO authorization on the current policy, we have seven years from the date of authorization Council has a window of opportunity to issue that debt, by policy only. The intent of was to ensure the applicant is prepared and able to meet it obligation to advance the development in a reasonable period of time so to prevent GO's from lasting forever. The Town is suggesting that it be extended to a longer length of time to 15 years, a longer development cycle and up to 75% of the development. The Town has been in discussion with Gladden Farms 1 for a future bond as it is past its seven (7) years by policy. Vice Mayor Post asked whether the Town wish to place some pressure on Gladden Farms 1 to pay the bond sooner rather than later. Mr. Montague, that was the intent; however, the market will drive how soon those homes will sell, the valuation and the debt. Related targeted tax rate is $2.50 (going forward what is the direction of Council) Vice Mayor Post stated based on the new calculations we are currently at a rate of $2.85 ($2.50 to 2.85 for debt and plus $.30 for maintenance) that would take the amount to $3.15. Mayor Honea asked whether it would be the same amount of money. Mr. Montague stated it would be accounting for the same amount of loss for future properties as they come onto the rolls. Directions proposed by Mayor Honea and Council: for ordinary CFD, GO's to maintain the actual overall target tax rate of the current rate of the CFD amount. The preferred is not more than $100 per month. Keeping the ratio at 4:1, rather than a reduced ratio. Based on the new calculations rate of $2.85 ($2.50 to 2.85 for debt and plus $.30 for maintenance) that would take the amount to $3.15. D3 Relating to Budget; discussion, direction and possible action regarding development of the fiscal year 2019-2020 budget, including proposed budget initiatives and expenditures (jamsheed Mehta) D4 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/ government actions and on recent and upcoming meetings of the other governmental bodies (jamsheed Mehta) Mr. Mehta stated there was a brief Legislative Meeting with Congressman O'I-Ialleran. The Town had an opportunity to present a few of its items relating to infrastructure understanding that when Congress does pick-up the bill for National Infrastructure Planning, the Town may have an chance to inform them of our needs to the Congress, and others of the Arizona Delegation. Related to legislative bills, last week to hear the bills in Committee there is a good chance the House will extend the deadline as they have been busy during the first few weeks of the Legislative Session. February 19, 2019 Regular Council Meeting Minutes Summary 14 The Bill that Marana is focused on is House Bill 2109 county Transportation Excise Tax, sponsored by Representative Shook from Pinal County. There is a Committee Hearing on February 20, 2019 the House of Ways and Means and the Transportation Committees. This bill is moving forward without any limitation on how the full one cent could be used. If approved by the Legislature and the Governor's office as it is an additional tax, it would be up to the individual jurisdictions (RTA. in Pima county) would have to make the determination to allocate it to capital or some portion to operations and maintenance. There is an opportunity to suggest to the sponsor to place a cap to on a portion for operations and maintenance. If directed by Council, the Town would approach the group who are sponsoring the bill as they have had some conversations. The sponsors are willing to work with us if we are working with the other stakeholders which includes Pima County. Council provided direction to do a 100% on the first half cent and 80/20 split the second half cent. 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. X38-431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. E2 Executive session pursuant to A.R.S. § 38-431.03(A)(7), discussions or consultations with designated representatives of the Town in order to consider the Town's position and instruct its representatives regarding negotiations for the possible sale of the Town's assets known as the Falstaff water system to the DeAn,za Domestic Water Improvement District. Vice Mayor Post motioned to go into Executive Session. council Member Kai seconded the motion. The motion passed, 4-0. 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: Vice Mayor Post motioned to adjourn the meeting. council Member Comerford seconded the motion. The motion passed, 4-0. February 19, 2019 Regular Council Meeting Minutes Summary is CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting heli. on February 19, 2019. I further certify that a quorum was present. Cherry L. Iwson, Town Clerk MARANA AZ FSTABIASHIFF) 1977 February 19, 2019 Regular Council Meeting Minutes Summary 16