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HomeMy WebLinkAbout01/14/2020 Study Session Summary MinutesA� MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL STUDY SESSION 11555 W. Civic Center Drive, Marana, Arizona 85653 Conference Center on the Second Floor, January 14, 2020 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 - Excused 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 directed the Clerk to call the roll. Mayor Honea, Vice Mayor Post, Council Members: Dave Bowen, Patti Comerford, Roxanne Ziegler, John Officer (Excused), Herb Kai. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved and Council Member Kai second the motion approving the agenda as written. Motion passes, 6-0. DISCUSSION/DIRECTION/POSSIBLE ACTION D1 Relating to Budget; presentation of independent auditor's report and final results for the 2018-2019 fiscal year (Yiannis Kalaitzidis) January 14, 2020 Study Session Sununnary Minutes 1 Finance Director Yiannis Kalaitzidis provided a PowerPoint Presentation overview of the independent auditors report and final results for the 2018-2019 fiscal year stating the Town had a very successful audited year. (A copy of the presentation is on file in the Toum Clerk's Office.) No action was taken on this item by Council. D2 Relating to Budget; presentation, discussion and direction regarding the framework for development of the fiscal year 2020-2021 budget and its role in the implementation of the Strategic Plan (Jamsheed Mehta and Yiannis Kalaitzidis) Town Manager Jamsheed Mehta and Mr. Kalaitzidis provided a PowerPoint Presentation related to the framework for the development of the fiscal year 2020-2021 budget and its role in the implementation of the Strategic Plan and town accomplishments, and requested feedback from Council during the initial development of the budget. Council Member Ziegler requested to receive an organization chart with all departmental positions per department under the department director before the budget is considered for adoption by Council. Mr. Kalaitzidis stated the Town will make every effort to provide the requested information in a timely manner during the budget process. Council Member Comerford stated for each department it submits a detailed budget request that Council does not have the opportunity to review. Council only sees the end result of budget approvals. She would like the opportunity to review the requests submitted by departments prior to the budget being provided to Council for its consideration. Mr. Mehta stated the Town will have on its website a dedicated webpage for the budget which will allow for the towns plans and programs to be identified, and provides the public to provide feedback to Town staff related to the budgeted items. Also will host the budget on the Town's social media platforms. In terms of the Council's Strategic Initiatives, what had been done last year and will continue this year, on each Regular Council Agenda an item to provide Council with the opportunity to share ideas publically related to the budget, and for the Town to consider officially. The item will remain on the agendas during the preparation of the budget cycle. No action was taken on this item by Council. D3 Relating to Public Works; discussion, consideration, and feedback regarding key policy considerations for use of Town -owned fiber conduit and ducts by third parties (Jane Fairall) January 14, 2020 Study Session Summary Minutes 2 Deputy Town Attorney Jane Fairall provided a PowerPoint Presentation overview of the stated item. Below are highlights from the presentation. (A copy of the PowerPoint Presentation is on file in the Town Clerk's Office.) Background • Town owns buried ducts in various rights-of-way in town • Typical duct includes 3 inner ducts,1 in use by the Town and 2 spares • Town has received requests from cable, telecom and internet providers to use spare inner ducts Location of Ducts: • A copy of the map is available in the Town Clerk's Office Key Policy Questions • Should the Town allow others to use Town ducts? • What should be the financial basis for the charge for use of the duct? • What should be the term of years (duration) for use of the duct? • Should the Town require facilities to be removed from the duct upon termination? • Should the Town have a standard form of contract for use of a Town duct? Use by Others • Should we allow others to use Town ducts? • Pros o Helps Town recoup some of its cost of installing facilities o Reduces utility conflicts by minimizing new cuts o Less disruptive to traveling public • Cons o May give third party conduit user the expectation of permanence o May shift some risk of conduit or facility failure to the Town o The proximity of the inner ducts could result in conduit user's facility failures interfering with Town facilities and other conduit users' facilities Financial Basis What should be the financial basis for the charge for use of the duct? o Town's actual cost of installing the duct o User's estimated cost of installing a line if they were not able to use the Town's duct o "In-kind" or revenue sharing agreements o Annual per linear foot charge ■ e.g. Pima County: 35 centers per foot/ per year (agreement entered into in 2011) ■ Could be adopted via comprehensive fee schedule January 14, 2020 Study Session Summary Minutes Duration ® What should be the term of years (duration) for use of the duct? o Renewed every 5 or 10 years o Permanent Removal of Facilities • Should the Town require facilities to be removed from the duct upon termination? o Could reduce the value of the duct to the user o Should require the user to put up security for the removal o Removal will make the duct available to other users and will avoid doubts about live vs. dead facilities Form of Contract • Should the Town have a standard form of contract for use of a Town duct? o Master agreement to use our system from time -to -time, as the need arises, at various locations, subject to individually executed Conduit Orders o Individual, ad-hoc agreements for each use o Use provider's form of agreement Ms. Fairall stated the Town anticipates that each time there is a request for an agreement, staff would come back to Council for its review, consideration and approval. She asked for feedback from Council on this matter. Council Member Bowen stated in general, he views this as town -owned roadway. That, Marana can recoup some of those expenses from building the road with impact fees, etc. If we can reduce some of cost, by entering into an agreement he is not against it. Though he is not an expert, he believes fiber optic cable does not interfere with one another. He asked whether the cable that is currently there belongs to the Town. Ms. Fairall replied stating she believes it is; Town Engineer Keith Brann (sitting in the audience) has nodded his head in agreement. Council Member Bowen stated he would see this situation as a renewable five (5) year lease option. He is not sure of the cost structure and the best way to handle it; however, he is curious about who is interested in having an agreement with the Town. Ms. Fairall replied stating it is First Digital. Council Member Bowen asked whether there is much competition for this space. He asked how it be structured to handle it. Ms. Fairall stated at this time, there is a lot of competition. The Town had received previous request a year or more ago. First Digital has made the inquiry to the Town. That this should be treated as a first come, first serve basis. The terms would be the discretion of the Council. January 14, 2020 Study Session Summary Minutes 4 Council Member Bowen commented stating once the fiber optic cable is in, it transmit likeness, there are improved cables—there is no need to remove cables as the amplification equipment that is installed at various junctures to re -boost the signal would be taken out by the leaser, as it would allow someone else to come in and install their own equipment. He expressed concern about the removal of lines once installed in the conduit as it would be wear and tear on the Town's conduit as time goes on. If cables can be left in place, and the leaser is willing to do that on termination and take their equipment, then he would be fine with it. Council Member Kai stated that is a good resource the Town needs to use as it has the cell tower and it can be used — it is added revenue. It just depends on how the contract is written. He indicated that he does not know much about fiber optics; however, thinks as one ends, the cable need to be taken out so that someone new could come in. We need to see what other jurisdictions does, and prepare the contract that would be favorable to the town. Mayor Honea asked whether the Town has determined the amount of revenue it would generate at $.35/foot per year. He expressed concern with moving forward with the possibility of receiving a small revenue source from it, and utilizing a significant amount of staff's time. Ms. Fairall responded stating she has not performed any financial projections on this; however, in an internal meeting, the Town was pleasantly surprised as the amount simulated could be a good source of revenue for the Town. Mayor Honea inquired about the number of feet would be used. Ms. Fairall stated she did not have that information available. Council Member Ziegler stated she is not familiar with conduit usage, and would leave it to those who are familiar. She commented on the nature of contracts stating that she does not believe the contracts should be longer than five years, and it provides a renewal/ renegotiation at the end of the term. The idea of having a master agreement then making amendments to it as the Town adds different neighborhoods, just add terms of conditions and update it accordingly. She agrees with Mayor Honea in that this should not be a laborious process for Town staff. She expressed concern with the indemnification language that was not in the presentation materials, but would like for the Town to include that if it moves forward. Ms. Fairall replied stating the Town would ensure to strengthen the language relating to indemnification within the agreement to protect the Town as much as possible. Council Member Ziegler stated she would not be opposed to this. 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. January 14, 2020 Study Session Summary Minutes 5 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 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. X38-431.03 (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 Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved and Council Member Comerford second the motion to adjourn the meeting. Motion passes: 6-0. Meeting adjourned at 7:21 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 January 14, 2020. 1 further certify that a quorum was present. J Cherry L. Lgfwson, Town Clerk January 14, 2020 Study Session Summary Minutes