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HomeMy WebLinkAbout02/20/2007 Regular Council Meeting Minutes MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 PLACE AND DATE Marana Municipal Complex A. CALL TO ORDER AND ROLL CALL By Vice Mayor Kai at 7:04 p.m. COUNCIL Ed Honea Herb Kai Bob Allen Jim Blake Patti Comerford Tim Escobedo Carol McGorray Mayor Vice Mayor Council Member Council Member Council Member Council Member Council Member Excused Present Present Present Present Present Present STAFF Mike Reuwsaat Gilbert Davidson Jim DeGrood Frank Cassidy Jocelyn Bronson Town Manager Deputy Town Manager Assistant Town Manager Town Attorney Town Clerk Present Present Present Present Present B. PLEDGE OF ALLEGIANCE AND INVOCATION/MOMENT OF SILENCE Led by Vice Mayor Kai. C. APPROVAL OF AGENDA Upon motion by Council Member Escobedo, seconded by Council Member McGorray, the agenda was unanimously approved with item 1-6 moved to Council Action as the first item. D. CALL TO THE PUBLIC E. PRESENTATIONS Ed Stolmaker, President and CEO of Marana Chamber of Commerce, addressed Council and stated there would be a ribbon cutting on Friday, February 23rd from 5pm-7pm at Sleep America on Arizona Pavilions. There will be advertisers by Chili's and there will also be door prizes. Andy Frank addressed Council regarding property he owns on Adonis Road which he has owned for seventeen years. He stated he has attempted to sell the property numerous times and has had to use the significant land use change process each time. There's been a pattern of being turned down every time over the last eight or nine years. He stated they have I MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 attempted a zoning change, but it failed to happen, as the residents of Marana Estates turned them down. He stated recently he was pressured to sell a ~ acre comer to accommodate the re-routing of Adonis Road for San Lucas Subdivision making his parcel irregular in shape. He stated he recently had an application by Bob's Materials turned down in the SLUC process and it was the best possible situation that he has had on the property. There would have only been one resident of Marana Estates that would have been backed up to it. They were going to beautify the area. They were going to bring in sixty to eighty thousand dollars in tax dollars every year. Mr. Bob Zammit also objected to it even though he's putting in hundreds of homes that are going to need landscaping materials and told Mr. Frank that he wasn't going to allow anything in the future. The application by Bob's Materials shouldn't have required a SLUC process because they are right next door to a plumbing contractor and the land is already approved for contractors' yards. This use would have been less offensive than anything Mr. Frank has had before and it was turned down. He stated he has spoken to Mr. DeGrood numerous times. Mr. Frank asked to leave all his documentation with his contact number. I asked to appeal the decision on the SLUC. Roxanne Ziegler addressed Council regarding the Heritage Park train. She stated she is opposed to Marana spending this much money on the train at this time. She stated when all the costs are added up initially it is over a quarter of a million dollars for the train as fixed costs just to get it here and up and running. She asked what the costs for the second and third phase would be. She asked about maintenance costs, maintenance agreements, and spare parts for the train. She stated she is in favor of having the Heritage Park, but she stated we do not need a train. Ora Mae Ham addressed Council and introduced Elizabeth Carlgren. She is attending Pima College and studying graphic arts. She has brought a plaque that she has made for the Town Hall. She has a brother that is in the Army currently stationed in Korea. Ms. Carlgren addressed Council and stated she designed a poster for her digital arts class which had to have meaning for her. She did it on 9/11 and includes the names of the victim's, their ages and where they were from. These were the people in the Trade Center, the four planes and The Pentagon. She wished to donate it. ANNOUNCEMENTSffiPDATES 1.: PGA Update Chief Vidaurri addressed Council and stated that the Accenture Match Play kicked off February 19th. No major incidents or events have taken place with the exception of a few minor administrative issues. Within the past 48 hours, it has been a very successful event and this is attributed to the intense planning over the last several months. All staff and outside agencies have worked very hard. Tomorrow's event is sold out. They are asking the public for patience with the expected delays in traffic. They are fully staffe~ at the intersections where they anticipate the traffic issues to take place. Chief Vidaurri stated there will be zero tolerance for items that the PGA has prohibited which are as follows: no cell phones, no cameras or video cameras, no firearms or weapons of any kind. No radios, TV's, signs or banners, no coolers, beverages, food or alcohol. No backpacks, packages or chair bags, no carry 2 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 items larger than 6 x 6 x 6. All items will be subject to inspection at anytime and no items will be checked at the gate. You must return those items to your vehicles. He stated he is very proud of all our staff and many individuals have stepped up when needed to include all the local, state and federal agencies that have assisted us. 2. Introduction of new staff members Mr. Davidson addressed Council and introduced Ryan Benavides, Assistant Director for Public Works. Mr. Benavides is the former Director of the Public Works from Wilcox, Arizona. His mission has been tasked to get our road projects completed. F. MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Council Member Escobedo stated he was disappointed that our community was not being recognized for the Accenture Match Play tournament that it was being billed as a Tucson event. Council Member Comerford complimented the Chief and staff for all their efforts. Council Member McGorray commented on that all the articles written out of Pebble Beach do refer to Dove Mountain in Marana and stated slowly we are getting the name Marana out there. She thanked staff for all their hard work. Vice Mayor Kai stated Mayor Honea wasn't present due to being at a sponsored golf event. Vice Mayor Kai thanked the Chief. G. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Mr. Reuwsaat addressed Council. He stated Council Member McGorray, Mr. DeGrood, Mr. Davidson and himself attended Mr. Nicholas' presentation at the tournament. Mr. Nicholas announced that the additional 36 holes where the Accenture will be moved to in the next two years is going along well and that he is the architect. Mr. Mangum took aerial photographs for the Tour and the Town and they will be used internationally for upcoming events. A year and a half ago, planning and zoning, full Council and full set of department heads went on retreat. They discussed emerging issues for the Town and one of those has been economic development. At that retreat all the participants identified what the priorities were for economic development. One of the items is developing a set of material or information that can be used to provide information about who we are and basically a community profile as it relates to a recruitment tool. That has been finished which has been about a nine month task to put together. 3 MINUTES OF REGULAR COUNCIL MEETING MARAN A MUNICIPAL COMPLEX DATE: February 20, 2007 H. STAFF REPORTS Mr. Davidson addressed Council and gave an update on the Cortaro Farms Road construction project. Hopefully, weather permitting, they will be paving some additional roadway beginning from the railroad tracks to Cerius Stravenue. Once that is complete they will begin moving traffic off the temporary bypass and onto smooth pavement. They are projecting it will take another three weeks to get the south side of that portion of the project completed. The finishing layer of asphalt will not be finalized until we have a sustained temperature of 65 degrees or better. They are projecting final completion in the end of March. Mr. DeGrood addressed Council regarding the Town's profile. It will be distributed at the media center for the Accenture Tour. Mr. DeGrood thanked staff in all their efforts in getting this finished. GENERAL ORDER OF BUSINESS I. CONSENT AGENDA 1. Resolution No. 2007-21: Relating to Real Estate; approving and authorizing the Town Manager to execute certain easements that the Developer inadvertently failed to reserve when dedicating to the Town of Marana Block C of the San Lucas Master Block Plat (Frank Cassidy) 2. Resolution No. 2007-22: Relating to Real Estate; approving and authorizing the Town Engineer to execute the Construction Period Land Use License Agreements for a roadway, a 12-inch water line and 12-inch sewer line with Central Arizona Water Conservation District, and Central Arizona Project (CAP) for Tangerine Farms Road, Project No. 2004-36 (Keith Brann) 3. Resolution No. 2007-23: Relating to Real Estate; approving and authorizing the Director of Public Works to execute the Pipeline Adjustment Agreement and grant a new easement with EI Paso Natural Gas Company as needed for the Tangerine Farms Road, Project No. 2004-36 (Keith Brann) 4. Resolution No. 2007-24: Relating to Community Development; granting in- kind public safety services paid through Discretionary Funding to Perimeter Bicycling Association of America, Inc., an Arizona 501 (c) (3) non-profit organization, to support the Tour of the Tucson Mountains Bicycling Event to be held April 29, 2007, in the Town of Marana (T. Van Hook) 5. Resolution No. 2007-25: Relating to Community Development; granting $5,000 in Discretionary Funding to the Pima Council on Aging, an Arizona 501 (c) (3) non-profit organization, to support the Mature Worker Connection activities for Marana senior citizens (T. Van Hook) 6. Minutes of the January 16,2007 and February 6, 2007 regular meetings. Upon motion by Council Member Escobedo, seconded by Council Member McGorray, consent agenda was unanimously approved. 4 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 J. COUNCIL ACTION Resolution No. 2007-26: Relating to Community Development; directing the Community Development Director to enter into a partnership with Habitat for Humanity to build affordable workforce housing for low-to-moderate income families in Marana (T. Van Hook) T. Van Hook addressed Council and introduced Michael McDonald, Executive Director for Habitat for Humanity, Tucson. Some ideas were presented for a Marana built Habitat, a collaborative program between our affordable housing office and Habitat for Humanity. In the past the Town has acquired affordable housing property through Pima County's CDBG (Community Development Block Grant) process. We are continuing to do that. The difference is in the past we had a student build program with the Marana Unified School District. For about 18 months that program has not been in existence, although they are working with the school district to get it up and running again. In the meantime they do not have a builder to build properties on our land that they have acquired through the County. They have been in negotiation with Habitat so we can move forward and get some affordable housing built on behalf of the citizens of Mar ana. Mr. McDonald addressed Council and congratulated Marana on their affordable housing trust fund and what they're doing for work force affordable housing. To date they have built 260 homes in Pima County. They built 20-25 homes every year. Their mission is to partner with the community with financial sponsors and community volunteers to build homes in partnership with low income families. They are a builder/lender to families that make less than 80 percent median income, typically they are making 50-60 percent median income. They would like to extend their work in Marana to start next fall on a home and hopefully expand that in 12-18 months to three to five homes every year working in partnership with the Town, staff and community to fund and build homes. They are not only able to bring volunteers, but also have access to private philanthropic dollars whether from individuals or foundations. They have access to HUD funds through the State of Arizona, through cities and counties, and through programs like the Federal Home Loan Bank system. Upon motion by Council Member Escobedo, seconded by Council Member Comerford, Resolution No. 2007-26 was unanimously approved. 1. PUBLIC HEARING. Ordinance No. 2007.02: Relating to Development; approving a rezoning for Hansen Hollywood (Kevin Kish) Mr. Kish is out of town. Lisa Shafer, Planning Department, addressed Council and stated approval is requested for rezoning of 4.14 acres. The site is generally 5 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 located at the southwest comer of Hollywood Boulevard and St. Patrick Road. A public hearing on this case was held before the Planning Commission on December 20th and during this meeting there were no property owners or concerned citizens that appeared before the Commission. The Planning Commission voted to recommend approval to the Town Council. The applicant is proposing to change the zoning from the current zoning ofR-144 which is single family residential to R-36. The site is bordered by C which is our large lot zone to the north and to the west, R-36 to the east and R-144 to the south. The owners wish to divide the property into three lots after the rezoning. As a condition ofthis rezoning, the property owners current or future, will be required to process a final subdivision plat for any future subdividing of the property. The general plan designates this property as low density residential and the proposed R-36 zoning will meet the intent and density requirements of the LDR land use designation. The subject property has direct access off of Hollywood Boulevard which is currently a dirt road. Another condition of approval is all weather access which will be required to this site. Another condition of approval is the disturbance limitation. The property will be limited to a 30 percent disturbance. All washes will be maintained in their natural condition and all development will adhere to the Town of Marana native plant ordinance. The total disturbance for each lot shall be recorded on the final plat in order to ensure overall site disturbance is not exceeded. This hearing was properly noticed. To date staffhas received three letters. To protect the Town against potential claims filed under the Arizona Property Right Protection Act, staff has required the applicant to waive all rights to compensation for the diminished value. They will have 15 days to record this waiver. Once the waiver is recorded then the 30 day wait period occurs for the approval of the rezoning. Upon motion by Council Member McGorray, seconded by Council Member Blake, Ordinance No. 2007-02 was unanimously approved. 2. Resolution No. 2007-27: Relating to Development; approving and authorizing a preliminary block plat for Gladden Farms Blocks 26-43 (Kevin Kish) Ms. Shafer addressed Council and stated approval is requested of a preliminary block plat that encompasses the entire Gladden II Specific Plan with the exception of Block 44 which is the current location of the sales center along Moore Road. This block plat will consist of six blocks of single family residential, seven blocks of high density residential, one block of transitional, four blocks of commercial, and one block which is a park site. The preliminary block plat is approximately 604 acres and is generally located east ofthe existing Gladden Farms development south of Moore Road and north of the future Tangerine Farms Road. The preliminary block plat was presented to the Planning Commission on January 30th and the Commission voted unanimously to forward this block plat to Council with the recommendation of approval. Within the block plat the land use designations will provide a mix of residential, commercial and transitional blocks. The residential designation provides a wide range oflot sizes for single family 6 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 homes very similar to the existing Gladden Farms development all the way up to high density units. The transitional designation allows for a mix of residential and commercial uses within the same development. This project has a maximum number of2,345 dwelling units per the Gladden Farms II Development Agreement. The proposed Gladden Farms II block plat follows the Specific Plan by locating their higher intensity uses along the east side of the project adjacent to the possible future commercial development of West cor and locating the less intense uses towards the west where the similar residential development is going on. Direct access for this project will be provided from Tangerine Farms Road to the south and Moore Road to the north. Clark Farms Boulevard will provide a direct connection between the two. The developers are required to pay all applicable arterial roadway development impact fees per the amended development agreement payable on building permit issuance. Block 32 is an 8.4 acre park site that will be used for Gladden Farms and Gladden Farms II residents. The development of this area will also provide 72 acres of open space within the landscaped pedestrian areas very similar to the Gladden Farms development that they have now. In compliance with the Town Ordinance 99.02 the developer shall pay $500 per acre of affected property for bank protection. This total obligation to the developer is $316,640.00 and the developer has also agreed, as part of the development agreement, to pay $1,200 per residential unit payable to the Marana School District at building permit issuance. The only recommendation states that all off site rights of way dedications for Clark Farms Boulevard within the Westcor property to the east, shall be dedicated to the Town prior to approval ofthe Gladden Farms Blocks 26-43 final block plat. Council Member Escobedo asked how the traffic issues with Moore Road would be resolved prior to this project. Ms. Shafer stated the main entrance for this project will be off the newly constructed Tangerine Farms Road. Phase IV of Gladden I is all limited to having the Tangerine Farms Road in and operational before any building permits will be issued on any home within Gladden Farms I, Phase IV. The road would be in place prior to that. Upon motion by Council Member Escobedo, seconded by Council Member Comerford, Resolution No 2007-27 was unanimously approved. 3. Resolution No. 2007-28: Relating to Development; approving and authorizing a preliminary plat for Tangerine Ridge, Lots 1-61 and Common Areas "A", "B" and "C" (Kevin Kish) Ms. Shafer addressed Council and stated the applicant is requesting preliminary plat approval for a 61 lot single family subdivision consisting oflots 1-61 and common areas A, B, and C on approximately 116.7 acres. The site is generally located south of Tangerine Road and west of Migity Lane. This project was presented to the Planning and Zoning Commission on January 31 st and is forwarding to Council with a unanimous recommendation for approval. This 7 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 property represents a portion of the previous Tangerine Hills Specific Plan. November 5th, 2002, Council approved to rezone the Tangerine Hills Specific Plan from F to R-36 single family residential. Much of this area is covered with vegetation that has high resource value. To protect and preserve the vegetation, the rezone condition restricted the total site to a maximum of 30 percent disturbance. The grading envelopes are conceptual and will be finalized during the grading plans. The areas outside ofthe grading limits will be protected from disturbance by deed restrictions. Each residential unit will pay $3,028 for public park and trail system facilities as adopted by Ordinance 2006-12. In lieu of dedication of school lands to the Marana School District, the developer has voluntarily agreed to contribution $1,200 per new residential dwelling at the time of building permit issuance. The gross density of .52 units per acre an onsite park is not required. However, ample open space is provided for passive recreation. Currently there are no sewer facilities in proximity to this site. The developer is proposing a private septic system for each lot which will meet the requirements of the Town and the Pima County Department of Environmental Quality who has reviewed the plat and given the approval for the septic system. Tucson Water is the water service provider and Trico will be providing electricity to the site. The primary access for this will be from Tangerine Road and the secondary access will be to the west through the northern portion of the proposed Tangerine Hills plat which is currently in preliminary plat stage. The Tangerine Road has an existing public right of way of a 100 feet and the developer will be dedicating an additional 120 feet of right of way via the final plat for the future expansion of Tangerine Road to create its share of the 350 foot planned right of way. The developer will also provide eastbound right turn lanes and a westbound left turn lane on Tangerine Road at the subdivision's primary access. The road improvements will be constructed by the developer prior to the application of the first building permit. Council Member McGorrary stated it was her understanding that improvements would be made, not only to Tangerine Road, but also to Angel Drive in order for that to be the secondary exit to the neighborhood. Ms. Shafter stated currently there is a 30 foot easement north of this property. They will be dedicating the southern 30 feet. Also there is 30 feet on the north part above the adjacent plat so there is ample room for them. The other plat that is in process, ifthey are not done in time, is so that a road can be placed in that 30 foot section all the way down Angel Drive. This will be required. Council Member Escobedo asked what passive recreation is. Ms. Shafer stated the open space which is along the western side of the project will have their open space areas for the kids to possibly play ball in. There will be no park structures or ramadas. There will just be an open area for kids to run around in. Council Member Escobedo asked if there was a requirement for them to provide a fee to the Parks and Recreation Department. 8 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 Mr. Reuwsaat stated the park impact fee is town wide so it is required. Ms. Shafer stated that it is $3,028 currently per individual lot which they would pay at building permit issuance. Upon motion by Council Member McGorray, seconded by Council Member Blake, Resolution No. 2007-28 was unanimously approved. 3. Resolution No. 2007-29: Relating to Intergovernmental Relations; approving and authorizing the Manager to include an item in the 2007-2008 fiscal year's budget pursuant to an intergovernmental agreement between the Town of Marana and Pima County and the Pima County Library District for the design, construction, equipping and furnishing of the children's addition of the Wheeler Taft Abbett, Sr. Public Library at Continental Ranch (Frank Cassidy) Mr. Cassidy addressed Council and stated this item relates to the Wheeler Taft Abbett, Sr. Library at Continental Ranch. When the bids were opened for the library, the County received an alternate bid for the 5,000 sq. ft. extra additional shell build out which was provided for in the intergovernmental agreement. The County has offered to pay half of this if the Town will pay half. Our half is $274,500.00. The base bid is paid for pursuant to the IGA as previously approved so this authorizes the addition. Roxanne Ziegler addressed Council and asked if the children's part was missed or is this is an additional $500,000. Mr. Reuwsaat addressed Council and stated if this addition would not be put in, the children's section would be part of the library. It would just be designed in the interior with a smaller space and a different set up. Because of the cost of adding this on, they thought it would be nice to add an addition, then see how it came out with the bids not knowing where the market was. Given the project came in almost on budget, and that the cost to build this addition will be much less expensive now then waiting a year or two, the County and the Town feel it is prudent to add the addition now and have the library done. Mr. Cassidy stated that paragraph 4 ofthe IGA states the design ofthe library shall include an optional alternate bid for an additional 5,000 square feet of constructed building build out area without substantial improvements in the event bids for the library are low enough to accommodate the alternate bid. Essentially the way it was anticipated was we would have the alternate bid. The base bid was $16,000 higher than the $4.5 million dollars that the County put towards this which is out of bond funding. Then there is a million for books and things inside that Mr. Abbett donated. We didn't have to accept the alternate bid ifit came in above the $4.5 million, but the bid was good enough that it made more sense to go ahead and accept it and make a supplemental determination of funding so the 9 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 County is donating half and they have asked the Town for half. The County technically could say to us, "Everything over $4.5 million, Town you have to pay for". If it was for the base bid we would have been obligated to pay everything over that so the County could have been tougher even on the alternate stating they want the Town to pay the entire $549,000, but they didn't do that. They recognize that the alternate was subject to further discussion so they went ahead and volunteered the additional half on the alternate. Mr. Reuwsaat stated it will be budgeted for in next year's fiscal budget. The funds will not be needed until the second or third quarter of next year's budget year. Upon motion by Council Member Comerford, seconded by Council Member Blake, Resolution No. 2007-29 with the amendment of$274,500 was unanimously approved. K. ITEMS FOR DISCUSSION/POSSIBLE ACTION 1. Resolution No. 2007-30: Relating to Boards, Commissions and Committees; approving appointments to the Utilities Commission (Jocelyn Bronson) Ms. Bronson addressed Council and stated this is the fourth of five Citizen Advisory Commissions that has been brought to Council for consideration and appointment. Due to the nature of this commission and statutory requirements it is known as the Utilities Commission at this time, but it will still be served by the same types of bylaws and the same Citizen Advisory Commission handbook as the other three commissions that were previously approved. The names that were provided were Devon Murphy, Joe Riley, Steve Wacker, Marsha Johnson, Joe Rex, Raul Pina, and Michael Gritzuk. Staff is asking for consideration of these names to the Utilities Commission. Upon motion by Council Member McGorrary, seconded by Council Member Blake, Resolution No. 2007-30 was unanimously approved. L. BOARDS. COMMISSIONS AND COMMITTEES 1. Discussion: Televised Council Meetings (Tony Cassella) Mr. Cassella addressed Council and stated when the building was designed, infrastructure was built in for future televised Council meetings. The cost to place the actual physical hardware, the equipment; cameras, equipment in the media room is roughly about $90,000.00. This does not include additional lighting. The lighting is not conducive to television. A cost for that is not available at this time. They are working with their vendor, as well as Channel 12 to come in and try to help with the design for additional lighting. Two of the channels we could use on Com cast are channel 74 and 75. Access Tucson is channel 74 and Tucson 12 is channel 75. 10 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 Currently the thought is to use Channel 12 to film the meetings and then the Comcast channel would carry that. Vice Mayor Kai asked what the projected yearly cost would be. Mr. Cassella stated it is usually ten percent or less per year to cover general hardware and maintenance of equipment. That would probably get built into our current audio/video maintenance because it will be installed by the same vendor. Council Member McGorray asked if it would be live or if it would be on at a set time and if the same meeting would be on several times. Mr. Cassella stated at this time they just wanted to get some numbers in preparation for the budget so we'll get further details as we go along. Mr. Reuwsaat addressed Council and stated the hardware is not overly significant and they will definitely bring it to Council in the budget. The goal would be to come back to Council when they have more information and that can be included in the budget with a goal of July 1. Council Member Comerford asked if it was possible to run a survey question through the web site asking how many people would watch it with the concern that it would not be used and that there is a request there. Mr. Cassella stated that could be done. Also every day there are stats on the web page such as how many hits and where they are coming from and that will help, as well for when the poll is done. He also stated besides being on the cable channels there are also ways to stream the Council meetings via the website. Roxanne Ziegler addressed Council and stated there is low voter turn out and low turn out for Council meetings. She did not think that spending money to televise the Town of Marana's Council meeting is the answer. She suggested a pilot plan or trial period ofthis through Comcast or one of our partners in the Town prior to putting in all the infrastructure to see how many people watch. She stated Council Member Comerford's idea was a good one too. She stated she did not think that right now was the time to do this. 2. Informational Update: Relating to the development of the 2007-08 Budget (Erik Montague) Mr. Montague addressed Council and gave an update on the development of the 2007 -08 budget. They are making some minor changes with respect to the development of the budget to incorporate some items. Mainly one of the changes they are recommending is the timing of the departmental budget submission. In years past what has come before Council has come in segments or pieces that being in personnel, operating costs, and then capital improvement projects. One of the things 11 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 in this budget year is a recommendation to incorporate a complete or whole budget for a particular department. Additionally, tied to that is a cost of service focus. One of the things they will be recommending to incorporate within this budget year is to identify revenues between program and non-program revenues. For program revenues they will have those recorded within the individual funds and within the individual departments. That will provide a higher level of detail to members of management and to the public to identify the revenue streams that are coming in to provide funding for these particular programs or services. One of the focuses of this budget year is one of performance measures. The different indexes that drive the quality of product or service that the citizens require or need of the Town. Those performance measures; numbers of permits, numbers of contacts, numbers of calls that drive workload should drive the supplemental requests and the needs for additional dollars and within departmental budgets. They are making a change in the budget to incorporate a higher level of flexibility in respect to grant activity. Currently some of the grant activity is incorporated within the general fund and has a potential impact from the operating budgets of the departments. They anticipate incorporating an unanticipated grants and contributions fund. This would provide for basically revenue and expenditure authority so when unanticipated grants and contributions come to the Town it's in the Town and community's best interest that we have an opportunity to take advantage of that grant. They will try to identify those grants that may have a cash match to identify a mechanism to meet those cash match requirements. They are making some slight changes to the capital improvement plan. Currently, certain things that are identified within the capital improvement plan may no longer necessarily be called a capital improvement and be part of capital improvement plan. They are going to try to incorporate a particular dollar threshold. At the end of the process there is a certain one time capital cost component that departments will need to require. Those will move within those departmental or operating budgets as a one time capital cost. What's remaining in the capital improvement plan is the major outlay of resources necessary for major infrastructure, road improvements and buildings. Incorporated within the capital improvement plan they will be making a significant effort towards a multiyear plan, a five year plan. Revenue projection would be adequate to meet the need over that five year plan. One of the significant efforts is to incorporate as soon as possible after the adoption of a final budget so as to complete a published budget. To increase the level of information from the finances perspective Mr. Montague will ensure that particular budget is included on the website. Currently, there is not a detailed budget on the website. Sales tax, permanent development fees, and state shared sales tax comprise approximately 90 percent of all revenues ofthe general fund. Impact fees, although not part of the general fund, are a significant resource for future infrastructure and related development. Sales taxes are approximately 60 percent of revenue to the general fund. Construction sales tax comprised approximately 47 percent of that tax revenue. That is a one time revenue stream. The overall projection for 2007 is slightly below 2006 which is largely attributable to the 12 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 Y2 cent sales tax rollback that occurred early in this fiscal year. The overall trend is positive. Permit development fees are comprised of about 19 percent of general fund revenues. These are heavily dependent on residential and commercial development. Since they are so dependent on that form of development we have seen a reduction in some of the single family residence construction permits. They have anticipated approximately $5.9 million in fees associated with this development. That was based on about 1500 permits. We are well offthat mark in the current year. They are predicting around a million dollar shortfall in that revenue stream. State shared revenues are about 11 percent of the general fund revenue. This is population dependent. They anticipate collecting $7.3 million in the current year. This number will remain relatively static up until the next census. Development impact fees; the road, park and water fees, these are primarily dependent on residential development. Weare projected to be around $3 million in revenue. This is a challenging number to project. These do provide a significant resource for future infrastructure. It is a measure oftiming when projects come on line as to when the dollars actually come to the Town. The Government Finance Officer's Association generally, as part oftheir recommended practices encourages towns to adopt some form of policy that says as far as a measure, that you should have at least 15 percent of estimated revenues within fund balance for your next year's reserves. The Town's target is around 25 percent. The fund balance for 2006 is roughly about 45 percent. The fund balance reserves are healthy. They will also continue to incorporate within this new budgetary year minimum contingency and that's to account for any anticipated shortfalls in revenues. As far as the revenue outlook for 2008, from the sales tax prospective, they anticipate an increase. It will be a modest increase. They anticipate a decrease with the development revenues. That's primarily associated with the reduction in anticipated single family starts. There will be anticipated decrease in impact fees, as well. The primary focus ofthe budget is to maintain or enhance existing programs or services. They don't anticipate a huge wealth of dollars for new significant services or programs. Management and finance has made a significant point to fund the compensation package to ensure, from the employee benefit side, that they are able to attract and retain existing employees. From the expenditure standpoint they anticipate limited funding for new positions, or large or significant new programs. Supplemental requests need to be provided to Finance by March 16th. Finance will compile the requests into a decision package and those packages will go to the Town Manager on approximately April 2nd. In April there are study sessions scheduled with Council to discuss the various elements of the budget with respect to revenue projections, personnel, CAP and the budgetary process. They have set the tentative budget for May 15th with the final adoption of June 17th. The Town is well positioned to take advantage of future commercial and residential development based on its location and 13 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20,2007 proximity with the interstate. It has been identified as a major corridor for future expansion. A three to five year time horizon is anticipated. The next budgetary cycle is likely to focus on funding existing programs and services. Mr. Reuwsaat stated he will be bringing to Council some policy questions in the months of March and April as it relates to compensation issues. Also, they are working on a reserve fund policy. They will be looking at the hotel/motel tax and either freezing that or taking a portion of it and putting it towards tourism and economic development. For future budget so it's not just a general fund item, but something they can use to develop economic tools and recruitment. 3. State Le2islative Issues: DiscussionIDirection/Action regarding all pending bills before the Legislature. (Mike Reuwsaat) Mr. Reuwsaat addressed Council regarding Senate Bill 1366. This bill relates to the increase in construction sales tax. It states that anything above what the other sales tax rates are, have to be dedicated to construction. We are currently at four percent and the rest of our sales tax is at two percent. All four cents have to be dedicated to construction. Mr. Reuwsaat stated that to his knowledge the Town of Maran a is the only agency in Arizona that says of the four percent we're going to dedicate three towards transportation infrastructure. Everyone else is at the two cents which is to the general fund and many are at three cents out of the four cents to help the general fund. It is significant enough in terms of dollars if that bill is successful, one penny in the construction sales tax generates about $4 million a year, and so it would be more than a significant hit to the general fund and how we operate our day to day business. Mr. Reuwsaat stated he will be asking the Mayor to make calls to our senators and representatives and they are working with all the other cities and towns to kill this bill or at least not to penalize organizations for the existing two cents that is at the same level as the rest of our sales tax. M. EXECUTIVE SESSIONS. Upon motion by Council Member Escobedo, seconded by Council Member McGorray, Council convened to executive session. Council reconvened at 9:03 p.m. Upon motion by Council Member Allen, seconded by Council Member Comerford, to proceed as discussed in the executive session was unanimously approved. N. FUTURE AGENDA ITEMS None. O. ADJOURNMENT 14 MINUTES OF REGULAR COUNCIL MEETING MARANA MUNICIPAL COMPLEX DATE: February 20, 2007 Upon motion by Council Member Escobedo, seconded by Council Member Comerford, Council voted unanimously to adjourn. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on February 20, 2007. I further certify that a quorum was present. 15