The URL can be used to link to this page

Home My WebLink About03/26/2019 Study Session Council Meeting Summary MinutesMARANA AZ ESTABLISHED 1977 ►/�G�►�1/r r��/►��K�Ifj ��y 111 STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, March 26, 2019, 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 John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:00 PM and direct the Clerk to call the roll. Mayor Honea, Vice Mayor Post, Council Member Bowen, Council Member Comerford, Council Member Kai, Council Member Ziegler and Council Member Officer were present, constituting a quorum of the Council. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE Mayor Honea led the Pledge of Allegiance followed by a moment of silence being observed. APPROVAL OF AGENDA Council Member Kai moved to approve the agenda Vice Mayor Post seconded the motion. Motion passed unanimously, 7-0. DISCUSSION/DIRECTION/POSSIBLE ACTION March 26, 2019 Study Session Meeting Summary Minutes 1 D1 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, 2016 through June 30, 2018 (Yiannis Kalaitzidis) [6:02 PM Minutes:] Mayor Honea opened the public hearing to receive testimony. Finance Director Yiannis Kalaitzidis provided an overview of the DIF biennial certified audit statutory requirements, and explained that the Town's auditor, Henry & Horne, has completed its audit. The audit found some payment irregularities. A couple were a matter of timing -- the fees did not adjust for revised fees. Fees for a couple custom homes were raised as an issue. For one, it was a reconstruction of a previously existing home, so there turned out not to be an issue. On another custom home, too much time had passed since the issuance of the permit to recover the fee. After the audit, another custom home permit was not accompanied by the DIFs. The Town will now do quarterly reports to try to catch payment issues more promptly. [6:07 PM] Minutes: Mayor Honea closed the public hearing. No testimony was provided. D2 Presentation: Relating to Economic Development; discussion, consideration and direction regarding Town of Marana membership in Sun Corridor, Inc. (Curt Woody) Economic Development Director Curt Woody provided a PowerPoint Presentation (on file in the Tozun Clerk Office) highlighting the Sun Corridor Inc. Membership benefits. Marana was a TREO member until 2012. With the creation of Sun Corridor, Inc., the funding has been flipped to 75% private 25% public. Membership fee is now $10,000 for Marana, which is currently the only local municipality not a member of the organization. Council Member Bowen asked for clarification on the fee, and asks about the performance measurements in previous contracts. Mr. Woody explained that they required a certain number of client contacts. Council Member Bowen asked for the main reasons we should join. Mr. Woody referred to the PowerPoint to highlight the benefits of a membership with Sun Corridor. Vice Mayor Post inquired as to whether Sun Corridor has different levels of membership. Mr. Woody says they do. Council Member Ziegler commented on the past membership fees the Town had when Sun Corridor was formerly GTEC. She is encouraged over the successes of the Tucson area and looks forward to having similar results for Marana; however expressed some March 26, 2019 Study Session Meeting Sunnnaiy Minutes 2 concern with past performance. Mr. Woody explained that the Town can withdraw from the entity as it is an annual membership. Sun Corridor is not client -oriented, and does not focus on which community the business ends up in -- the main focus is for businesses to end up in this region. Council Member Kai expressed the importance of the Town being a member. He requests reports about economic development opportunities. Council members can use their own connections to assist in bringing business to the Town. Mr. Woody explained most of the proposals are written in code, with the name of the particular company is not known. Council Member Comerford stated it is time for the Town to come to the table, so that Mr. Woody has all the tools he needs for economic development. Mayor Honea stated this discussion has been happening for the past year. Marana is sometimes criticized as being not regional. Council Member Comerford moved to direct the Town Manager to include within the FY2020 Budget funding for membership in Sun Corridor, Council Member Bowen seconded the motion. Motion passed unanimously, 7-0. D3 Presentation: Relating to Administration; discussion, consideration and direction regarding the development of a Town of Marana pension funding policy for Public Safety Personnel Retirement System (PSPRS) eligible employees hired before July 1, 2017, as required by Arizona Revised Statutes § 38-863.01 (Yiannis Kalaitzidis) Mr. Kalaitzidis provided a PowerPoint Presentation of this item providing an overview of the PSPRS Funding Policy strategies for reducing un -funded mandates for PSPRS pension liability. League has put together a template to cover the simple issues, allowing the Council to focus on the key issues. It will by 2036 before the pension is fully funded, according to current studies. Discussion of tier 1, 2, and 3 eligibility. Unfunded actuarial accrued liability (UAAL) depends on a number of factors, and currently stands at over $15M and is increasing. Ratio currently stands at 58%; however, depends on life expectancy, mortality, etc. Creation of the tiers is expected to ease the unfunded liability. Goal is to maintain stability of our fund. Marana is currently contributing 100% of ARC from operating revenues. Staff recommends the following: 1) Accept actuarial report funded target ratio and date (100% by 2036); 2) Always contribute 100% of ARC from operating revenues; 3) Authorize the Town Manager to propose additional measures as part of the annual budget process based on projected financial conditions and Town operational needs: a) Prepayment of annual employer PSPRS contributions; b) Use of reserve amounts; c) Dedicated revenues. Council Member Ziegler ask whether is only applies to police and elected officials also administered by PSPRS. Unfunded liability looks like a moving target that is moving March 26, 2019 Study Session Meeting Summary Minutes 3 up. She asked what things can be done to stabilize the increases and how do we know when this is going to stop. Mr. Kalaitzidis stated no new employees are going into the plan; new employees are going into Tier 3. How much it goes up depends on how well the funds do and the extent of increases given to covered employees. Council Member Ziegler asked when the Town receives the number each year from the actuary. Mr. Kalaitzidis the Town will receive it next year, we will get a bill for just over $1.8M to cover this. Marana typically pre -pays it in July (ahead of time), mostly pulled from the general fund; we've done that for the past several years. Council Member Bowen asked what the actuaries projecting for investment returns. Mr. Kalaitzidis stated 7.6%. Mayor Honea stated he was a proponent of prepaying ahead of time, to take advantage of the better interest the fund gets. A couple communities that are not growing have gone broke. Council Member Comerford asked Mr. Kalaitzidis whether he was seeking 'asking --for more funding. Mr. Kalaitzidis stated the request is just to authorize the Manager to propose a PSPRS policy to the Council. Council Member Comerford asked whether the 100% funding assume that everyone retires tomorrow. Mr. Kalaitzidis replied stating it just makes a projection about how much we'll need by 2026. Fifty-eight percent (58%) funding is not a bad place to be. Vice Mayor Post asked whether the police officers also subject to the regular withholding. Mr. Kalaitzidis stated they are; however, the impact is on the employer contribution to PSPRS, not the employee portion. Vice Mayor Post asked whether the Town fund is held separately from other municipalities' funds. Mr. Kalaitzidis stated that is, but the various funds are invested together. Council Member Ziegler inquired about the withholding contribution by employees for each of the tiers. Mr. Kalaitzidis explained that it is approximately 7.65% for Tier 1, 11.6% for Tier 2, and 10.6% for Tier 3; adjustable based on actuarial information, set by statute. The employer's contribution is recommended by the actuary. Deputy Town Manager Erik Montague provided a brief overview of the three tiers. 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), Council may ask for discussion or consideration, or consultation with designated Town representatives, or March 26, 2019 Study Session Meeting Summary Minutes 4 consultation for legal advice with the Town Attorney, concerning any matter listed on this agenda for any of the reasons listed in A.R.S. §38-431.03 (A). 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 moved to adjourn the meeting, and Council Member Bowen seconded the motion. Meeting adjourned at 7.05 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes for the Study Session Meeting of the Marana Town Council meeting held on March 26, 2019. I further certify that a quor Hn, was present. MA ACherry L. La son, Town Clerk AZ [:STABLISHI`-'D 1977 March 26, 2019 Study Session Meeting Summary Minutes 5