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HomeMy WebLinkAboutSpecial Council Meeting Agenda Packet 02/25/2020MARANA TOWN COUNCIL SPECIAL COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Conference Center on the Second Floor, February 25, 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 John Officer, Council Member Roxanne Ziegler, Council Member Pursuant to A.R.S. § 38-431.02, notice is hereby given to the members of the Marana Town Council and to the general public that the Town Council will hold a meeting open to the public on February 25, 2020, at or after 6:00 PM located in the Conference Center on the Second Floor of the Marana Municipal Complex, 11555 W. Civic Center Drive, Marana, Arizona. ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics.  As a courtesy to others, please turn off or put in silent mode all pagers and cell phones. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 7:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the Conference Center on the Second Floor) and deliver it to the Town Clerk prior to the convening of the meeting. Marana Special Council Meeting 02/25/2020 Page 1 of 15 All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, the Conference Center is are wheelchair and handicapped accessible. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Town Clerk at (520) 382-1999. Requests should be made as early as possible to arrange the accommodation. Agendas Copies of the agenda are available the day of the meeting in the Conference Center or online at www.maranaaz.gov under Agendas and Minutes. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at 382-1999, Monday through Friday from 8:00 AM to 5:00 PM. This Notice and Agenda Posted no later than Monday, February 24, 2020, 6:00 PM, at the Marana Municipal Complex, 11555 W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina Road, and at www.maranaaz.gov under Agendas and Minutes.   SPECIAL COUNCIL MEETING             CALL TO ORDER AND ROLL CALL   PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE   APPROVAL OF AGENDA   ITEMS FOR DISCUSSION/POSSIBLE ACTION   D1 PUBLIC HEARING: Relating to Alternative Expenditure Limitation (Home Rule Option); public hearing pursuant to A.R.S. section 41-563.01 regarding the proposed extension of the alternative expenditure limitation for the Town of Marana (Yiannis Kalaitzidis)   D2 Resolution No. 2020-019: Relating to Administration; approving the transfer of up to $300,000 in budgeted expenditure authority from the General Fund contingency line item in fiscal year 2019-2020 budget to the Downtown Visitor Center project in the Capital Improvement Program (CIP) for design and construction services for remodeling the Parks Administration Building (Mo El-Ali)   EXECUTIVE SESSIONS Marana Special Council Meeting 02/25/2020 Page 2 of 15 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. §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).      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   Marana Special Council Meeting 02/25/2020 Page 3 of 15    Council-Special Meeting   D1        Meeting Date:02/25/2020   To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:February 25, 2020 Strategic Plan Focus Area: Commerce,  Community,  Heritage,  Recreation,  Progress & Innovation Strategic Plan Focus Area Additional Info: The ability to set the Town's expenditure limitation at the local level under the Home Rule Option is critical in providing essential services described in all sections of the Town's Strategic Plan. Subject:PUBLIC HEARING: Relating to Alternative Expenditure Limitation (Home Rule Option); public hearing pursuant to A.R.S. section 41-563.01 regarding the proposed extension of the alternative expenditure limitation for the Town of Marana (Yiannis Kalaitzidis) Discussion: The Arizona Constitution and Arizona Revised Statutes impose an annual expenditure limitation on Arizona cities and towns.  Article IX of the Arizona Constitution also allows for a city or town to adopt a local alternative expenditure limitation, or Home Rule Option, with the approval of the majority of the qualified voters of the city or town.  The Home Rule Option allows the community to determine what its spending limits will be at the local level rather than the formula-based limit imposed by the State of Arizona.  Under the Home Rule Option, if approved, total expenditures for the city or town are determined at the time of budget adoption and may exceed those imposed by the State of Arizona. The Home Rule Option is in effect for four consecutive years once it is approved. In 1985, and every four years thereafter, the residents of the Town of Marana voted to adopt the Home Rule Option. The current Home Rule Option was passed on November 8, 2016, and is in effect through fiscal year 2020-2021.  As required by the consolidated elections law, this item will be considered at the same time as candidate elections which will occur this calendar year. Without the Home Rule Option, Town expenditures may not exceed those set forth inMarana Special Council Meeting 02/25/2020 Page 4 of 15 Without the Home Rule Option, Town expenditures may not exceed those set forth in the State Constitution. The State's limitation is determined by an expenditure base that was established in 1979-80, adjusted for inflation and population growth over the years.  The estimated State imposed limitation, including estimated constitutionally excludable expenditures, for fiscal year 2021-2022 is $75,763,332, while the Town's estimated expenditure limitation under the Home Rule Option, based upon estimated revenues, is $139,453,470. That represents and estimated $63,690,138 reduction in estimated expenditures. The following table represents estimated revenues, expenditures and the difference between the State’s imposed limitation. Fiscal Year Estimated Revenues Estimated Expenditures Projected State-Imposed Expenditure Limitation (Including Estimated Exclusions) Difference       2021-2022 $139,453,470 $139,453,470 $75,763,332 $63,690,138       2022-2023 $115,299,188 $115,299,188 $45,875,971 $69,423,217       2023-2024 $117,834,509 $117,834,509 $60,031,399 $57,803,110       2024-2025 $107,137,202 $107,137,202 $56,005,742 $51,131,460 The table above clearly illustrates the importance of the Home Rule Option. This is especially true for faster growing communities like Marana.  Without the Home Rule Option, the Town would be mandated to cut expenditures and services like street maintenance, public safety, community development, and parks and recreation programs to comply with the State imposed limitation despite receiving revenues well in excess of the limitation.  The worksheets attached to this item provide a more detailed analysis of the aforementioned calculations. With approval of the Council, residents of the Town will be asked to vote on the Home Rule Option on the August 4, 2020 Primary Election ballot. If the ballot measure passes, the Home Rule Option will take effect for fiscal years 2021-22 through 2024-2025. Prior to scheduling an election for the Home Rule Option, the Council must conduct at least two public hearings. All required notices of public hearings were properly posted in accordance with State Statute.  This is the first of two public hearings on the Alternative Expenditure Limitation.  The second public hearing will be held on March 3, 2020, after which the Council may consider the adoption of a resolution authorizing the Home Rule Option to be submitted to the voters of the Town of Marana. Financial Impact: The Home Rule Option allows the community to set the expenditure limit at the local Marana Special Council Meeting 02/25/2020 Page 5 of 15 The Home Rule Option allows the community to set the expenditure limit at the local level based upon existing resources.  Without the Home Rule Option, the Town would be mandated to cut expenditures and services like street maintenance, public safety, community development, and parks and recreation programs to comply with the State imposed limitation.  Revenues received in excess of the State imposed limit could not be spent on essential services. Staff Recommendation: Public Hearing only. Suggested Motion: Public Hearing only. Attachments Home Rule Schedules Marana Special Council Meeting 02/25/2020 Page 6 of 15 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) SUMMARY ANALYSIS The voters of the Town of Marana on November 8, 2016 adopted an alternative expenditure limitation (Home Rule Option). The purpose of this election is for the continued use of the Home Rule Option. Pursuant to the Arizona State Constitution, the Town of Marana seeks voter approval to adopt a Home Rule Option to apply to the town for the next four years beginning in 2021-2022. Under a Home Rule Option if approved by the voters, the town estimates it will be allowed to expend approximately $139,453,470 in 2021-2022, $115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and $107,137,202 in 2024-2025. With approval of the Home Rule Option, the town will utilize the expenditure authority for all local budgetary purposes including general government, public safety, highways and streets, economic and community development, culture and recreation, water utility, wastewater utility, airport, debt service and capital improvement projects. Under the state-imposed limitation the town estimates it will be allowed to expend approximately $75,763,332 in 2021-2022, $45,875,971 in 2022-2023, $60,031,399 in 2023-2024 and $56,005,742 in 2024-2025 for the operation of your local government. These expenditure estimates include expenditures of constitutionally excludable revenues. The amount of revenue estimated to be available to fund the operation of your town government is $139,453,470 in 2021-2022, $115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and $107,137,202 in 2024-2025. These revenue estimates are the same under the Home Rule Option or the state-imposed expenditure limitation. Any and all dollar figures presented in this summary are estimates only and are based upon information available at the time of preparation of this analysis. The budget and actual expenditures in any of the four years may be more or less than the expenditures noted above depending on available revenue. If no alternative expenditure limitation is approved, the state-imposed expenditure limitation will apply to the town. 1 of 3Marana Special Council Meeting 02/25/2020 Page 7 of 15 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) SUMMARY ANALYSIS WORKSHEET POPULATION FACTOR COMPUTATION Fiscal Year Prior Fiscal Year Population / 1978 Population = Population Factor 2021-2022 51,000 / 1,425 = 35.7895 2022-2023 52,600 / 1,425 = 33.9123 2023-2024 54,300 / 1,425 = 38.1053 2024-2025 55,900 / 1,425 = 39.2281 STATE-IMPOSED EXPENDITURE LIMITATION Fiscal Year 1979-80 Base Limit x Population Factor x Inflation Factor = Projected State- Imposed Expenditure Limitation + Estimated Exclusions = Total Expenditures Under State- Imposed Limit 2021-2022 $ 202,239 x 35.7895 x 3.2190 = $ 23,299,227 + $ 52,464,105 = $ 75,763,332 2022-2023 202,239 x 33.9123 x 3.2998 = 24,633,359 + 21,242,612 = 45,875,971 2023-2024 202,239 x 38.1053 x 3.3840 = 26,078,382 + 33,953,017 = 60,031,399 2024-2025 $ 202,239 x 39.2281 x 3.4695 = $ 27,525,111 + $ 28,480,631 = $ 56,005,742 2 of 3Marana Special Council Meeting 02/25/2020 Page 8 of 15 ALTERNATIVE EXPENDITURE LIMITATION (Home Rule Option) DETAILED ANALYSIS Pursuant to the Arizona State Constitution, the Town of Marana as authorized by Resolution No. 2020-_____ passed on ___________, 20__ will seek voter approval to adopt an alternative expenditure limitation (Home Rule Option) to apply to the Town for the next four years beginning in 2021-2021. Under a Home Rule Option if approved by the voters, the town estimates it will be allowed to expend approximately $139,453,470 in 2021-2022, $115,299,188 in 2022-2023, $117,834,509 in 2023-2024 and $107,137,202 in 2024-2025. With approval of the Home Rule Option, the town will utilize the expenditure authority for all local budgetary purposes including general government, public safety, highways and streets, economic and community development, culture and recreation, water utility, wastewater utility, airport, debt service and capital improvement projects. We estimate that the expenditures for the next four years under the Home Rule Option will be as follows: ESTIMATED AMOUNTS TO BE EXPENDED IN SPECIFIC AREAS Purpose 2021-2022 2022-2023 2023-2024 2024-2025 General Government $ 24,193,385 $ 24,677,253 $ 25,170,798 $ 25,674,214 Public Safety 19,282,457 19,668,106 20,061,468 20,462,697 Highways and Streets 10,694,341 10,908,228 11,126,393 11,348,921 Economic and Community Development 6,110,405 6,232,613 6,357,265 6,484,410 Culture and Recreation 5,133,573 5,236,244 5,340,969 5,447,788 Water Utility 6,951,588 7,090,620 7,232,432 7,377,081 Wastewater Utility 2,335,496 2,382,206 2,429,850 2,478,447 Airport 646,187 659,111 672,293 685,739 Debt Service 10,807,815 10,760,600 10,664,684 10,571,405 Capital Improvement Projects 53,298,223 27,684,207 28,778,357 16,606,500 Total Expenditures $139,453,470 $ 115,299,188 $ 117,834,509 $ 107,137,202 If approved, the expenditures authorized will be funded from revenues obtained from federal, state and local sources. It is estimated that the amount of revenue from each source for the next four years will be as follows: ESTIMATED AMOUNTS OF REVENUE FROM EACH AND ANY SOURCE Source 2021-2022 2022-2023 2023-2024 2024-2025 Federal $ 23,415,961 $ 8,535,177 $ 14,996,754 $ 1,568,897 State 20,417,735 20,826,090 21,242,612 21,667,464 Local 95,619,774 85,937,921 81,595,143 83,900,841 Total Expenditures $ 139,453,470 $ 115,299,188 $ 117,834,509 $ 107,137,202 (The town property tax shall be limited to the amount prescribed in the Arizona State Constitution). In determining the revenue sources to fund the authorized additional expenditures under the alternative expenditure limitation, it is assumed that the federal, state and local revenues received by the town will continue to be available in 2021-2022 as they have for the past four years. Their continued availability is also assumed for the next three consecutive years following 2021-2022. Any and all dollar figures shown in this analysis are estimated figures only and are based upon information available at the time of preparation of this report. The budgets and actual expenditures in any given year may be more or less than the figures noted above depending on available revenues. The actual expenditure limitation for each fiscal year shall be adopted as an integral part of the budget for that fiscal year. 3 of 3Marana Special Council Meeting 02/25/2020 Page 9 of 15    Council-Special Meeting   D2        Meeting Date:02/25/2020   To:Mayor and Council From:Mo El-Ali, Public Works Director Date:February 25, 2020 Strategic Plan Focus Area: Commerce,  Heritage Subject:Resolution No. 2020-019: Relating to Administration; approving the transfer of up to $300,000 in budgeted expenditure authority from the General Fund contingency line item in fiscal year 2019-2020 budget to the Downtown Visitor Center project in the Capital Improvement Program (CIP) for design and construction services for remodeling the Parks Administration Building (Mo El-Ali) Discussion: The FY 2019-2020 budget includes a $200,000 budget line item that was intended to be used towards finding a location for a Downtown Visitor Center. After the budget was approved, it was decided that the Parks Administration Building would be an appropriate location for a Downtown Visitor Center. We now have 30% design drawings and a cost estimate for design and construction services for remodeling the Parks Administration Building. Conceptual drawings are attached. The scope of work includes the following items: New double glass door entrance on the east side of the building facing Lon Adams ADA compatible family restroom to make the building code-compliant Upgrade of the existing restrooms A new kitchen and break room area Removal and replacement of ceiling and grid tiles New sidewalk, patio area, built-in seating and landscape on the east side of the building Upgrade irrigation in the new landscape area The estimated cost of this project is $500,000.  Some elements of the design are still under consideration and as such are presented as alternates. The purpose of tonight's item is to request a transfer of up to $300,000 in General Fund contingency expenditure authority to the Downtown Visitor Center line item in the CIPMarana Special Council Meeting 02/25/2020 Page 10 of 15 contingency expenditure authority to the Downtown Visitor Center line item in the CIP for design and construction services for remodeling the Parks Administration Building.The budget for fiscal year 2019-2020 was adopted in June 2019 which set the legal level of budgetary control at the department level. Council approval is required for budgetary transfers. Financial Impact: Fiscal Year:2020 Budgeted Y/N:Y Amount:$300,000 An amount of up to $300,000 in General Fund contingency will be transferred to the existing project for the Downtown Visitor's Center (CD007). Staff Recommendation: Staff recommends approval. Suggested Motion: I move to adopt Resolution No. 2020-019, approving the transfer of up to $300,000 in budgeted expenditure authority from the General Fund contingency line item in fiscal year 2019-2020 budget to the Downtown Visitor Center project in the Capital Improvement Program (CIP) for design and construction services for remodeling the Parks Administration Building. Attachments Resolution No. 2020-019 Marana Visitor Center Conceptual Drawings Marana Special Council Meeting 02/25/2020 Page 11 of 15 Marana Resolution No. 20 20-019 - 1 - MARANA RESOLUTION NO. 2020-019 RELATING TO ADMINIST RATION; APPROVING THE TRANSF ER OF UP TO $300,000 IN BUDGETED EXPENDITURE AUTHORITY FROM THE GENERAL FUND CONTINGENCY LINE ITE M IN FISCAL YEAR 2019-2020 BUDGET TO THE DOWNTOWN VISITOR CENTER PROJECT IN THE CAPITAL IMPROVEMENT PROGRAM (CIP) FOR DE SIGN AND CONSTRUCTIO N SERVICES FOR REMODELING THE PARKS ADMINISTRATION BUIL DING WHEREAS on June 18, 2019, the Town Council adopted the fiscal year 201 9-2020 budgetary document and overall financial plan which set the legal level of budgetary control at the department level for the General Fund and at the fund level for all other funds; and WHEREAS the Town Council desires to transfer budgeted expenditure authority in the fiscal year 2019-2020 budget of up to $300,000 from the General Fund contingency line item to the Downtown Visitor Center Project in the Capital Improvement Program ; and WHEREAS transferring budgeted expenditure authority from the contingency fund of up to $300,000 within fiscal year 2019-2020 will not significantly impact the General Fund; and WHEREAS reallocations of budgeted expenditure authority between the contin- gency line item in the General Fund to other line items are necessary from time to time; and WHEREAS the Council finds that the reallocations addressed by this resolution are in the best interest of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The transfer of up to $300,000 in budgeted expenditure authority from the General Fund's budgeted contingency line item in the fiscal year 2019-2020 budget to the Downtown Visitor Center Project in the Capital Improvement Program for design and construction services for remodeling the Parks Administration Building is hereby approved. Marana Special Council Meeting 02/25/2020 Page 12 of 15 Marana Resolution No. 20 20-019 - 2 - SECTION 2. The Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, ob- ligations, and objectives of this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 25th day of February, 2020. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Marana Special Council Meeting 02/25/2020 Page 13 of 15 Marana Special Council Meeting 02/25/2020 Page 14 of 15 Marana Special Council Meeting 02/25/2020 Page 15 of 15