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HomeMy WebLinkAbout06/18/2019 Regualr Council Meeting Summary Minutes .a6e, MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers June 18, 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 7:02 PM and directed the Clerk to call the roll. Vice Mayor Jon Post; Council Members Dave Bowen, Patti Comerford, Herb Kai, Roxanne Ziegler and John Officer were present. There were a quorum of council members present constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Bowen moved and Vice Mayor Post seconded the motion to approve the agenda. Motion Passed: 7-0 CALL TO THE PUBLIC Mayor Honea opened the meeting to receive public comments. There were no comments offered. June 18,2019 Regular Council Meeting Summary Minutes 1 PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Council Member Bowen stated his vacation was great. Council Member Officer commented about the improvements on Ina Road and wished to thank Town staff for their efforts and hard work. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Town Manager Jamsheed Mehta reported, this is the last council meeting of the fiscal year, and provided an overview of the number of items Council had considered during the 2018/2019 fiscal year. This Council has handled 227 action items that does not include proclamations, various presentations, over 100 resolutions and 24 ordinances. Council has held several public hearings as well you had 29 meetings throughout this fiscal year counting this one. Some of the major items that Council have considered, some of them were bold moves made by the Council setting the stage for future growth and development. If you recall the half cent sales tax was repealed back to promises made promises kept. This is the year and Council also made some significant investment in Water Treatment Facilities that's $15,000,000 worth, and that was quick action on the part of this Council to take care of something that was not its fault, and yet it is paying the price for that. The Make Marana 2040 Plan has progressed significantly and now the Town is in the final stretches of that particular project going forward for the General Plan update. Council granted approval for the FAA Airport Control Tower application that has been received by the FAA now; that is with news we should be hearing from them in a few months. The Land Development Code particularly the Downtown District and the Sign Code Ordinance was also approved by this Council. Marana joined the Sun Corridor and now we now have full membership within that organization after a lapse of some years. Council has identified and set up a funding target to pay up the PSPRS Pension Funding Plans—it now has a policy that guides Marana. As far as the budget process and that too is again on your agenda for tonight. The final budget includes two significant Employee Benefit Programs the Paid Parental Leave Program and the Tuition Reimbursement Program. These two programs were initiated here by this Council. Council also engaged in Council Connections as this was your attempt to reach out to the residents, and businesses in a more informal setting which we have here every Council Meeting. Council also had the Marana Legislature Day. In all, a very fruitful beneficial year with several significant landmark decisions made by Council. He thanked Council and the staff who work behind the scenes to bring forward important resolutions and ordinances. June 18,2019 Regular Council Meeting Summary Minutes 2 He announced with the departure of John Kmiec, Water Director for last seven years, we have Scott Schladweiler who has been appointed the Interim Water Director. He will be presenting of one of on the agenda later this evening. Mr. Mehta stated with this being the last meeting of this fiscal year as we normally do we take the month of July off and return in August. August 6th would be the next scheduled Council Meeting. Staff will move forward with a cancellation notice should be going out soon officially to cancel the two scheduled meetings of July. PRESENTATIONS CONSENT AGENDA Council Member Ziegler moved and Council Member Kai seconded the motion to approve the Consent Agenda. Motion Passed: 7-0 Cl Resolution No. 2019-050: Relating to Intergovernmental Relations; approving and authorizing the Town Manager to execute a Lobbying Services Agreement with Tri- advocates, LLC for fiscal year 2020 (Tony Hunter) C2 Resolution No. 2019-051: Relating to Development; approving a final plat for Del Webb at Dove Mountain VIII, Lots 554-595 and Common Area "A" (Drainage/Open Space) located south of Dove Mountain Boulevard and east of Rim Trail (Brian D. Varney) C3 Resolution No. 2019-052: Relating to Development, approving a final plat for Saguaro Bloom Block 8A, a re-plat of Lots 15, 27, 28, 29, 33, 73, 74, 87, 88 and Common Areas B and C at the northeast corner of Saguaro Peaks Blvd. and Hidden Saguaro Trail. (Steven E. Vasquez) C4 Resolution No. 2019-053: Relating to Administration; designating Yiannis Kalaitzidis as the Town of Marana's chief fiscal officer for purposes of submitting the Town's annual expenditure limitation report as required by A.R.S. §41-1279.07 (Jane Fairall) C5 Resolution No. 2019-054: Relating to Economic Development; approving and authorizing the Mayor to execute a funding agreement between the Town of Marana and the Marana Chamber of Commerce, Inc. for fiscal year 2019-2020 to support operation of the Marana Visitor Center and provision of services to the Marana community (Curt Woody) C6 Resolution No. 2019-055: Relating to Municipal Court; approving and authorizing the Mayor to execute an intergovernmental agreement between Pima June 18,2019 Regular Council Meeting Summary Minutes 3 County and the Town of Marana for provision of video-court hearings of municipal prisoners for 2019-2020 (Laine Sklar) C7 Resolution No. 2019-056: Relating to Municipal Court; approving and authorizing the Mayor to execute an intergovernmental agreement between Pima County and the Town of Marana for payment for the incarceration of municipal prisoners for the period of July 1, 2019 through June 30, 2020 (Jane Fairall) C8 Resolution No. 2019-057: Relating to Community and Neighborhood Services; approving and authorizing the Mayor to execute Amendment Two to the Intergovernmental Cooperative Agreement between Pima County and the Town of Marana for the Community Development Block Grant (CDBG) Program and HOME Investment Partnership Program for federal fiscal years 2017-2022 (Lisa Shafer) C9 Ordinance No. 2019.013: Relating to Business Regulations; repealing Town Code Chapter 9-9 (Cable Television) and replacing it with Town Code Chapter 9-9 (Video Services) to conform to Arizona Revised Statutes Title 9 Chapter 13 as adopted by Laws 2018 Chapter 331 (Senate Bill 1140); and adopting the Uniform Video Services License Agreement and the Application and Affidavit for Uniform Video Service License (Frank Cassidy) Resolution No. 2019-058: Relating to Business Regulations; declaring as a public record filed with the Town Clerk the Application and Affidavit for Uniform Video Service License and Uniform Video Service License Agreement forms adopted by Marana Ordinance No. 2019.013 (Frank Cassidy) C10 Ordinance No. 2019.014: Relating to Personnel; approving and adopting amendments to the Town's Personnel Policies and Procedures, revising Chapter 2 - Employment Process, Chapter 4 - Employment Benefits and Leaves, and Chapter 6 - Performance Management and Employee Development (Curry Hale) C11 Ordinance No. 2019.015: Relating to Finance; amending the Town of Marana Comprehensive Fee Schedule; and designating an effective date (Yiannis Kalaitzidis) Resolution No. 2019-059: Relating to Finance, declaring as a public record filed with the Town Clerk the amendments to the Town of Marana Comprehensive Fee Schedule adopted by Ordinance No. 2019.015 (Yiannis Kalaitzidis) C12 Approval of the June 11, 2019 Council Study Session Summary Minutes, and the June 4, 2019 Council Regular Meeting Summary Minutes (Cherry L. Lawson) LIQUOR LICENSES June 18,2019 Regular Council Meeting Summary Minutes 4 L1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding a new series 12 Restaurant liquor license application submitted by Jose Dan Montano on behalf of DDS Seafood Grill, located at 4140 W. Ina Road, Suite 180, Tucson, Arizona 85741. Town Clerk Cherry Lawson provided an overview of the liquor license application before the Council for its consideration, stating staff recommends approval of the license to be granted. Vice Mayor Post moved and Council Member Ziegler seconded the motion to adopt and submit to the DLLC an order recommending approval of a new series 12 Restaurant liquor license application submitted by Jose Dan Montano on behalf of DDS Seafood Grill, located at 4140 W. Ina Road, Suite 180, Tucson,Arizona 85741. Motion passed, unanimously: 7-0. BOARDS, COMMISSIONS AND COMMITTEES B1 Resolution No. 2019-060: Relating to Boards, Commissions and Committees, making appointments to the Town of Marana Planning Commission (Cherry L. Lawson) Ms. Lawson provided an overview of the Planning Commission appointments recommending the incumbents be reappointed for a four year term expiring June 30, 2023. Council Member Comerford moved and Vice Mayor Post seconded the motion to adopt Resolution No. 2019-060, appointing Sharon Tyson, Thomas Schnee, Bryan Schachter, and Theresa Fehrmann to the Town of Marana Planning Commission with terms expiring June 30, 2023. Motion passed, unanimously: 7-0. COUNCIL ACTION Al PUBLIC HEARING: Ordinance No. 2019.010: Relating to Development; approving a rezoning of approximately 52 acres of land located east of Interstate 10, approximately a half-mile south of Linda Vista Boulevard, from Zone E (Transportation Corridor Zone) and Zone C (Large Lot Zone) to R-3.5 (single-family residential) and R-6 (single-family residential), and approximately 17.4 acres of land from Zone E (Transportation Corridor Zone) to Village Commercial (VC); and approving a minor amendment to the Marana General Plan land use designation from Low-Density Residential (LDR) to Medium-Density Residential (MDR) (Brian D. Varney) Senior Planner Brian Varney provided a PowerPoint overview of the item stating this is a continuance of the public hearing that was held by the City Council on May 7, 2019 for the Joplin Estates Rezoning. The Council voted to continue the public hearing to June 18,2019 Regular Council Meeting Summary Minutes 5 provide the applicant with time to reevaluate its' recreational provision to the planned subdivision, which they have and were in attendance to present the updates to Council. The Planning Center will explain later in the public hearing their methodology behind the changes. He provided a synopsis of the project stating this is 69.4 acres is located S and SE of the Marana Center. The current zoning there is zone C and zone E and the proposed zoning is R3.5, R6 and (VC) Village Commercial. The minor amendment to the General Plan is amendment from LDR to MDR which is Low Density to Medium Density. Of the 69.4 acres, 52 are proposed to be rezoned to residential R3.5, R6—that is 33.7 acres in 18.3 respectively. The remaining 17.4 is currently zoned E proposed to be resolved to (VC) Village Commercial and a Low Density to Medium Density is the request for the minor amendment to the General Plan. The biggest change here is the recreational area as it has been increased from 1.2 acres to 2.6 which has resulted in the block count reduction from 190 to 185, and the density is subsequently come down from 3.65 two 3.56. All of the changes and the revisions have been incorporated into the text of the site analysis document as well as the exhibits. There have been a couple of revisions made since the Staff Report packet was assembled, and those revisions include an additional condition to the ordinance. The ordinance has been amended to include a condition which limits the minimum lot size and the R3.5 to 4800 square feet. The additional revision is that the conceptual exhibits for the neighborhood park and also the dog park have been amended to include the amenities were drinking fountain for people in both of the parks and the drinking fountain for dogs at the dog park. Staff is recommending approval of the ordinance for the rezoning as well as the accompanied General Plan Amendment subject to conditions that are within the draft ordinance. Council Member Ziegler inquired about the procedural concept nature for dog parks in general asking whether this is a concern for the Town as opposed to the Planning Center. Her concern is not about the dog park, but rather, it is regarding drinking fountains for the dogs. She stated The Planning Center is looking to add a water fountain in its dog park, but questioned whether fountains for animals would be installed in all of the Town's parks, as she would like to see some consistency with regards to them. She has asked many times for drinking fountain at Crossroads at Silverbell District Park. She does not believe there is a drinking fountain at Ora Mae Ham Park. She asked about the Town's philosophy for installing a dog park in relation to adding drinking fountains for the animals. She apologized for bringing the matter up, and asked when the appropriate time is to voice this concern as she believes it should be a policy document. Mr. Mehta stated staff could definitely take it up with Council Member Ziegler and introduce it more as a policy document for a later time as now the Town is not prepared to provide an answer. This concern could be discussed later in the evening during Future Agenda Items. June 18,2019 Regular Council Meeting Summary Minutes 6 Project Manager Lexy Wellot, The Planning Center provided an update to the case before the Council. The property is located just east of Interstate 10 south of the outlets mall. It is currently vacant surrounded by vacant land to the north which is in the process of being platted. Linda Vista Village Plat will come before Council in the months to follow. That is occurring to north of Marana, and they have large lots to the east and some unregulated subdivisions to the south with a horse training facility and a dog shelter. When the Planning Center initially submitted this site plan, we came in with a proposal of 190 lots, one Neighborhood Park that was approximately 30,000 square feet, one trail that was a total of 24,000 square feet, and a total of 17.2 acres of collective open space. At the May 7 Council Meeting, Council expressed its concern with the lack of recreational amenities such as parks and a dog park. They took the concerns expressed by Council and revised its site plan and reduced the planned lot count by five (5) in an effort to increase the overall park amenities. The park amenities that they are now looking to provide is a 79,000 square foot park that will encompass this greater area. Also are proposing to include picnic tables, benches, some concrete block ways, play equipment, shade structures, a Ramada and turf that are approximately 9,000 square feet. In addition to the 79,000 square foot neighborhood park, they have also added a 12,000 square foot dog park which will feature a shade structure, picnic tables, benches, and both parks will have drinking fountains accessible to both humans and animals at each park. Further adding to the dog park and the neighborhood park, they will add a trailhead as there was one previously; however, the new one will conform to what a trail should look like. This trail will be 10 feet wide adjacent to the drainage way and will feature stabilized decomposed granite path that will look more of a natural feel. They wanted asphalt, but it gets a little hot and so by doing a decomposed granite stabilized natural path, they believe that it will create a nice welcoming place for all that will be ADA accessible as well. Ms. Wellot illustrated a side by side comparison from what they had been initially approved for by the Planning Commission verses the recommended changes as requested by Council. She explained the changes stating they did not have a minimum cap on their lot size that they have since included in the document as an added condition. However, the minimum lot size will now be 4,800 square feet for the R 3.5 zone. They went from a 30,000 square foot neighborhood park to 91,000 square feet including of the Dog Park and Neighborhood Park. They are committed to providing play structures, Ramada's, picnic tables, Dog Park, shade sails, drinking fountains etc. When you breakdown that park square footage they have increased it from an overall 284 square feet per lot to 622 square feet per lot. It is their intention in these parts to make sure that the landscaping is kept well and so irrigation will be provided to the trees in the park. June 18,2019 Regular Council Meeting Summary Minutes 7 Mayor Honea stated the redesign looks so much better than it did when it was initially presented to Council. He commended The Planning Center on the revised concept with the improvements and infrastructure being added. Council Member Bowen also commended them for the redesigned work of this proposed community stating he is very much in favor of it. Vice Mayor Post asked whether the access point will be straight from Linda Vista. Ms. Wellot replied affirming the access point will go straight down from Linda Vista down to Camino de Estes as well as for commercials. Vice Mayor Post move and Council Member Bowen seconded the motion to adopt Ordinance No. 2019.010, approving the Joplin Estates Rezoning, subject to the recommended conditions. Motion passed, unanimously: 7-0. A2 PUBLIC HEARING: Resolution No. 2019-061: Relating to Budget; adopting the Town of Marana's fiscal year 2019-2020 final budget (Yiannis Kalaitzidis) Council Member Bowen moved and Vice Mayor Post seconded the motion to adopt Resolution No. 2019-061, adopting the Town of Marana's fiscal year 2019-2020 final budget. Motion passed, unanimously: 7-0. A3 Resolution No. 2019-062: Consideration and possible adoption of a resolution approving and authorizing the execution and delivery of a First Amendment to District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms (Phase II) Community Facilities District) and declaring an emergency (Frank Cassidy) Town Attorney Frank Cassidy addressed the Council stating the Council saw this as the District Board of the Gladden Farms II CFD. He explained this is a three party agreement that is between the Community Facilities District, the Town and the Developer. The reason is the Development Agreement and an Intergovernmental Agreement is actually an amendment to the agreement that was done way back when the district was first created. This amendment is required simply to take account of new things that have happened, for example Forest City Enterprises with the developer on the original agreement. This agreement now puts the petrous entities in that place. The Letter of Credit and Stand by Obligations are now brought forward to line up with our current requirements for that. Some of the terminology has been modernized; the new tax policy that now refers to Limited Fast Valuation instead of just Assessed Valuation. That is because of a change in law since this District was created. This is simply a matter of cleaning up some of the language. Council Member Kai moved and Council Member Ziegler second the motion to adopt Resolution No. 2019-062, approving and authorizing the signing of the First June 18,2019 Regular Council Meeting Summary Minutes 8 Amendment to District Development, Financing Participation and Intergovernmental Agreement (Gladden Farms (Phase II) Community Facilities District) and declaring an emergency. Motion passed, unanimously: 7-0. ITEMS FOR DISCUSSION/POSSIBLE ACTION D1 Relating to Development and Public Works; update, discussion, and possible direction regarding public and private projects and development applications on the Town's Marana Current and Proposed Projects internet site (Jamsheed Mehta) Mr. Mehta stated the Town has not received any new request as of this day that was reported during the last Council Meeting. 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 (Jamsheed Mehta) Mr. Mehta reported there are no updates on this item at this time. D3 Presentation: Relating to Utilities; update, discussion and possible direction regarding proposed changes to water and water reclamation rates and fees (Scott Schladweiler) Interim Water Director Scott Schladweiler and Todd Cristiano, Senior Manager with Raftelis provided a PowerPoint Presentation on the proposed changes to the water and water reclamation rates and fees. (PowerPoint Presentation is on file in the Town Clerk Office as well as on the Town's website.) Below is a brief overview of the PowerPoint. Agenda 1. Rate-setting process 2. Water financial plan and rates 3. Water Reclamation Financial Plan and Rates 4. Water and Water Reclamation Bill Comparisons 5. Next Steps Study goals and objectives • Multi-year financial plan, cost-of-service, and rates which sustain the long-term financial health of the water and water reclamation utilities o Securing of current and future water resources o Fund system improvements o Fund preventative maintenance programs o Develop and fund a reserve policy o Ensure timely payment of annual debt obligations June 18,2019 Regular Council Meeting Summary Minutes 9 o Development of rates that provide revenue stability and promote conservation • Water and wastewater bills are increasing nationwide o US Consumer Price Index Comparison Data from the Bureau of Labor Statistics o Drivers for the Increases ■ Energy costs ■ Aging and additional infrastructure ■ Increased regulatory pressures • Previous rate increase plan initiated in 2013 o Water ■ April 2014 (+6.5%) (Cumulative 6.5%) ■ January 2015 (+6.5%) (Cumulative 13.4%) ■ January 2016 (+4.7%) (Cumulative 20.6%) ■ January 2017 (+4.7%) (Cumulative 27.9%) • Water Reclamation ■ April 2014 (increased to match Pima County) 1. Rate-setting process • Industry publications provide the framework o American Water Works Association, Manual M-1, Principles of Rates, Fees, and Charges o Raftelis Financial Consultants, Water and Wastewater Finance and Pricing o Water Environment Federation, Financing and Charges for Wastewater Systems • The rate-setting process o Financial Plan: What level of revenue is needed to meet expenditures, reserves, and bond covenants? o Cost-of-Service: Is each customer class paying their equitable share? o Rate Design: How should costs be recovered? • Step 1: Financial Plan o Financial Policies: Apply financial policies which inform the cash flow analysis o Revenues at Existing Rates and other income: Projected number of customers, consumption, and revenues o O&M and Capital Budget: Forecast of expenditures o Capital Funding Sources—Rates, Debt, Capacity Fees: Identify level of rate revenue, bonds and fees for financing capital projects o Revenue Increases: Adjust revenues to meet annual expenditures and financial policies o Cash Flow Analysis: Summary of projected revenues, expenditures and rate increases June 18,2019 Regular Council Meeting Summary Minutes 10 • Step 2: Cost-of-Service Analysis o Determines cost to provide service to each customer class based on the demands they impose on the utility o Recognizes customer classes' differing service characteristics Water Wastewater - Average demand - Billable contributed flow -Peak demands -Number of customers by class - Number of customers by class - Number of meters by class o Costs will vary by customer class • Step 2: Cost-of-Service Analysis - A multi-step process o Determine revenue required from rates o Assign operating and capital costs based on system facility or function in the system which incurs that expense o Allocate those costs based on how facilities are designed and operated within system o Distribute allocated costs to customer classes based on their demand characteristics • Step 3: Rate design o Method of recovering the cost to provide service for each customer class o Water and wastewater rate designs typically consist of a monthly fixed charge and a volumetric rate o Fixed charge • Meter maintenance and meter reading • Customer service,billing, and collection, general administration • Portions of salaries and benefits and other general fixed expenses (utilities, uniforms, office equip., maintenance, etc.) • A component of capital costs - readiness to serve o Volume rate, $ per 1,000 gallons • Water volume rate generally recovers the cost to collect, treat and distribute water to customers • Wastewater volume rates generally recover cost to collect, treat, and recharge of treated effluent o Water and Water Reclamation utility general assumptions o Each utilities' financials are separated into funding for operations and funding for capital projects • Operating cash flow • Shows the ability of rates for each utility to meet annual O&M, debt, transfers to the capital fund, reserves and debt service coverage • Capital cash flow • Shows the ability of bond proceeds and rate revenue required to meet annual capital costs • Study period: FY20 - FY24 • Test year rates: FY20 June 18,2019 Regular Council Meeting Summary Minutes 11 2. Water • Water Financial Planning Assumptions o Forecast period: FY20-FY24 o FY19 number of accounts: 8,094 ■ Over 95% of accounts are residential o Annual account growth: 5.5%;470 accounts o Projected consumption: Based on historical customer billing data from FY17 and FY18 o Target operating reserves: 90 days O&M • Water Operating Cash Flow Summary • Water Operating Fund Cash Flow Summary $ Millions • Water FY20 Revenue Requirement$ Millions • Water Comparison FY20 Cost of Service to FY20 Revenue Under Existing Rates • Fire Service - New Fee o Standby service o Provided to customers with private hydrants, standpipes or sprinkler systems o Fire service fee improves equity between customer classes o Fee is based on cost of service analysis • Groundwater Resource Fee o Current Fee ■ $.50 per 1,000 gallons applied to all water usage o Proposed charge based on cost of service analysis and recovers ■ CAP expenses ■ Withdrawal fees ■ Long-term storage credits o Proposed Fee ■ $1.13 per 1,000 gallons applied to usage and water customers o Water: Existing and Proposed Service Charges $ Per Bill o Water: Existing and Proposed Volume Rates $ per 1,000 gallons o Water: Typical Residential Water Bills ■ 5/8" meter ■ 7,000 gallons usage o Water: Typical Commercial Water Bill (Small) ■ 5/8" meter ■ 8,500 gallons usage o Water: Typical Commercial Water Bill (Large) ■ 2" meter ■ 63,000 gallons usage 3. Water Reclamation • Financial Planning Assumption o Forecast period: FY20 - FY24 o FY19 number of accounts: 4,278 June 18,2019 Regular Council Meeting Summary Minutes 12 ■ Over 90% of accounts are residential o Account growth: 7.5% per year, 300 accounts o Billable volume: Based on historical customer billing data from FY17 and FY18 o Target operating reserves: 60 days O&M o Operating fund cash flow summary o Operating fund cash flow summary $millions o FY20 revenue requirement$millions o Comparison FY20 cost of service to revenue under FY20 existing rates o Multifamily, commercial and governmental cost of service based on actual water use o Existing and proposed rates o Typical monthly residential bills 5,236 gallons (7ccf) o Typical monthly commercial bills (Small) 5/8" Meter 8,500 (11.4 ccf) 4. Bill Comparison • Typical commercial water and wastewater bills (Small) o 5/8" Meter o 8,500 gal (11.4 ccf) Water Use • Typical commercial water and wastewater bills (Large) o 2" Meter o 63,000 gal (84 ccf) Water Use • Community monthly bill comparison o Single family residential o 5/8" meter o 7,000 gallons water; 5,326 gallons (7 ccf) wastewater • Study goals and objectives o Multi-year financial plan, cost-of-service, and rates which sustain the long-term financial health of the water and water reclamation utilities ■ Securing of current and future water resources ■ Fund system improvements ■ Fund preventative maintenance programs ■ Develop and fund a reserve policy ■ Ensure timely payment of annual debt obligations ■ Development of rates that provide revenue stability and promote conservation o Next Steps ■ August 13 - Regular Council Meeting- Post the Notice of Intent for the Public Hearing ■ October 15 - Public Hearing and potential adoption ■ January 1, 2020 - rates go into effect ■ Public Outreach will take place between August 13 and October 15 • Open houses, stakeholder meetings, website updates, social medial plan and direct mailings June 18,2019 Regular Council Meeting Summary Minutes 13 Mayor Honea stated no one is interested in raising rates on residents; however, as explained by Mr. Schladweiler energy expenses are increasing and the Town is being proactive to ensure that our systems are well-maintained. He commended Mr. Schladweiler and Todd Cristiano, Senior Manager with Raftelis on the presentation and work done to bring the item forward. Vice Mayor Post expressed concern over a drop in reserves asking whether it is mostly a one-time expenditure that it is used to keep the rates low. Mr. Schladweiler responded stating on the wastewater side, a drop in revenue the Town has a large cost associated with manhole replacement. Currently they have 25 manholes that are need of immediate replacement. The amount is spread out over five (5) years to make it more palatable. They would love to be able to replace them all at one time; however, it is not financially feasible at this time. They have other manholes that will be in need of replacement in the near future as well. Once they replace them, it would be with a different form of technology whereby manholes can last longer. Those are the primary cost on the wastewater side. Vice Mayor Post asked whether Mr. Schladweiler finds that covering the renewable resource is cheaper or more expensive for customers who are not connected to Marana's Wastewater System, or is the cost the same across the board. Mr. Schladweiler replied stating either way, Marana has to provide the renewable resource. When we purchase that water, we have to incur those costs regardless. There is an added benefit for the customers on the wastewater side to receive some of that water back. With the recharging of the water, we have the added bonus of supporting Marana's Water Program. Either way, Marana will still have the need to purchase additional water resource and to pay the cost even with the existing customers with or without water reclamation. Vice Mayor Post stated the water rate increases are very reasonable, and would like to see it continue. Council Member Bowen inquired about changing the commercial wastewater rate from a winter quarterly to actual usage. It is his assumption that most commercial properties do not have many grounds to maintain, as most water is used internally and therefore ends up in our wastewater system. He asked how the Town would handle a business that has a large campus (i.e. school). Mr. Schladweiler replied stating that was an area that they had reviewed and noted the increase was not significant as the business may be shut down for winter or summer breaks. Council Member Bowen stated the Town Clerk had made him aware of the conflicting August date for the meeting. He asked that Mr. Schladweiler confirm the dates as we move forward. Council Member Kai inquired about the stand pipe charge asking whether that is the stand pipe charge for someone with a 5,000 water tank to purchase water from the Town. Mr. Schladweiler affirmed that it is the amount charged. Council Member Kai June 18,2019 Regular Council Meeting Summary Minutes 14 asked why the increase as there is no maintenance involved. Mr. Schladweiler stated they review this situation in the same manner as other fees and it is with a cost for service approach as there is maintenance involved. They do have computer programs in that area, as well as cards for each customer that has to be maintained or replaced overtime, and this is a one-time water use. The Town does not receive any of the water back as that resource will be used in areas outside of town limits which impacts to the water resource fee if we have to pay for the water. It all ties together and is a cost to service approach. Council Member Kai asked whether the increase fee for water resource from $.50 to $1.13 is enough for future cost from the Central Arizona Project. Mr. Schladweiler stated he believes the proposed increase is enough based on projections and analysis by the Water Department and Raftelis for increasing CIP costs, groundwater withdrawal fees, etc. for the next five (5) years. This will likely be reevaluated at a later date. Mayor Honea asked whether construction trucks that use fire hydrants will be charged the same rate as stand pipes. Mr. Schladweiler replied stating they do have a flat fee and a monthly minimum that they have to pay. Currently, they pay a $65 monthly premium added to that the flat fee per 1,000 of water, approximately $4.33/1,000 gallon. It is a flat fee, no tiered structure. Mayor Honea expressed concern over someone who would come in for potable water and from the standpipe gets 5,000 gallons; next year will pay $100. Yet a construction company will get the same 5,000 gallons and pay $25, $55 and $75 for a truck load of that same water. It would be cheaper for the construction company than it is for the individual who is getting potable water. He asked whether there was any reason for that difference. Mr. Schladweiler stated he does not have a reason for that; it is a cost of service reason. With the standpipe, they do not typically use it nor have the same capacity as someone who has a separate location. There are higher capacities available to them throughout the Town. The opportunity to fill up at the standpipe is limited in terms of flow and capacity. Mayor Honea expressed his concerns over a construction company having to pay far less than an individual filling a water tank for a house. Mr. Mehta stated this is an excellent point for the Town to consider. Between now and when the next meeting of Council in August, the Town will provide a better clarifying statement as to why the charges are structured in the manner proposed or make an adjustment accordingly. This hydrant water rate is also inclusive of the irrigation rates for the same thing. Irrigation or hydrant water is the same as compared to the standpipe which requires maintenance to support many at the same time. There will be some variation, but why the four to five times discrepancy between the two. This will come back to August at that time. Mayor Honea stated $20 and $40 is a big difference between in price that he understands there is a $55 upfront fee for construction, but a lot of those folks will get June 18,2019 Regular Council Meeting Summary Minutes 15 10 to 12 loads over a month. He asked whether the $55 is a monthly fee or an annual fee for usage. Mr. Schladweiler replied stating the base fee is $65 it is a monthly minimum fee. Mayor Honea asked that staff look into the discrepancy of the differing fees as persons getting potable water are paying more than the construction companies for the same water. 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), Council may ask for discussion or consideration, or consultation with designated Town representatives, or 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). E2 Executive Session pursuant to A.R.S. § 38-431.03 (A)(1) for discussion, consideration and possible interviews of candidates for appointment to the Planning Commission. 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). Council Member Ziegler commented on her previous remarks regarding dog parks stating dog parks are beginning to take off now. Mayor Honea responded stating he was the one who asked that the builders put water in the Joplin Estates Dog Park. People are telling him that they do not want a permanent water fountain at dog parks as there may be an increase of bacterial infection as well as wild animals getting into the water. They would prefer a faucet instead, and the parent would bring their own plastic container or dish for the animal. That is what he was trying to push, as we need to have water with having the extreme temperatures and wanting to care for our pets. He would rather not have a permanent drinking fountain as it is a way to pass disease and bacteria. Council Member Ziegler stated as the evolution of dog parks have grown across communities and since the installation at the Crossroads at Silverbell, she asked Former Town Manager Mr. Gilbert whether the Town could install seating for the parents who were at the dog parks. Benches were installed. Then she requested some form of shade source for the patrons at the park, those were later installed. Now, we need to look at some standard policy language for dog parks. She believes that the Town was able to intercede before the new park was developed in Joplin Estates. That as we move forward we should have policy that defines the amenities in a dog park prior to June 18,2019 Regular Council Meeting Summary Minutes 16 permitting a park to be developed including benches, shades, sails, and water sources. She appreciated Mayor Honea's comments on the water sources. The cost should be placed on the developer and not the Town of Marana. Mr. Mehta stated he appreciates Council Member Ziegler bringing this item forward as the Town would begin to identify what resources or amenities our parks already have, but does not believe the Town currently has a policy or standard per se. There is a difference between the Town parks versus a developer's park that will later be maintained by the HOA or that private community. He asked that Council allow staff to do some research and come back at a later date with the findings. If at that time Council believes the Town needs to have a standardized policy, Town staff will need to come back to Council to see how the process would work with new dog parks. While we were discussing this topic, Jim Conroy, Parks & Recreation Director text him to inform that the Town does currently have some of these dog parks and facilities, but it may not be housed inside of the fenced dog park area. He will bring this forward to Council in a form of a report and go from there. ADJOURNMENT Council Member Bowen moved and Council Member Kai seconded the motion to adjourn the meeting. Meeting adjourned at 8:37 PM. Motion passed, unanimously: 7-0. (Viva voce) CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on June 18, 2019. I further certify that a quorum was present. ►..'�`.�.Vii'!! � Cherry L. L. son, Town Clerk MARANA AZ ESTABLISHED 1977 June 18,2019 Regular Council Meeting Summary Minutes 17