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Home My WebLink About05-17-2022 Regular Council Meeting Summary Minutes MARANA AZ CELEBRATING 45 YEARS MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, May 17, 2022, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MEETING 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: Jackie Craig, Patti Comerford, Roxanne Ziegler,John Officer, and 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 to approve the agenda as presented. Motion passes unanimously, 7-0. CALL TO THE PUBLIC PROCLAMATIONS Marana Regular Council Meeting Summary Minutes May 17,2022 Page I 1 MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Mayor Honea reported that he and Town Manager Terry Rozema met with Pima County Administrator Jan Lesher and Board Chairperson Sharon Bronson, District 3 and had a good meeting with both. He believes the Pima County will work well with the Town on many projects, and he is excited about the town's future relationship with the county. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Town Manager Terry Rozema reported on the following: • Development Service Department issued 42 single-family residential permits as of this day. Last year at this same time, 82 permits in May 2021. Total number of permits for the year as of this day is 1,224. • Concert in the Courtyard returns on May 19, 2022 at 5:30 pm with the Little House of Funk band. • Town staff has interviewed the final four architectural firms last week Friday, and selected the company that will work with the town on the Community Center and Aquatic Center project. • Parks & Recreation sponsored the Mother's Day 5K run and had 260 runners participate. Programming has continued with the Parks & Recreation Department. • Construction work to commence on Sandario and Twin Peaks to install a roundabout in that intersection. The intersection will closed starting June 1 through August 1. • The art installation on Sandario and Marana Main is nearly complete ahead of the July schedule. Ribbon cutting and the unveiling of the art piece will be held in June. • Construction on I-10 at night from 9 p.m. and 5 a.m. near Twin Peaks has begun. • Run for the Wall bikers will be in town on Thursday, May 19 from 7 a.m. to 9 a.m. at the Circle K. Come out to support them as they prepare to ride to Washington, DC to the Vietnam Wall. • Northwest Fire District will host a ribbon cutting on Thursday, May 19 at 9 a.m. for the opening of their new administration building. Please come out to support and attend this event. PRESENTATIONS P1 Relating to Budget; presentation of third quarter results (July-March) for the Town's General Fund and other selected major funds for the 2021-2022 fiscal year (Yiannis Kalaitzidis) Marana Regular Council Meeting Summary Minutes May 17,2022 Page 12 Finance Director Yiannis Kalaitzidis presented third quarter results (July-March) for the Town's General Fund and other selected major funds for the 2021-2022 fiscal year as follows: The results are very positive for us still through the third quarter. This particular presentation, he noted amounts that are preliminary, unaudited and are likely to be adjusted as we move forward towards the end of the fiscal year. Overall, the Town's revenues illustrate from the summary slide that we are doing very well fronts. In some cases, as in the bed tax fund. We actually have exceeded what we anticipated to get just because the capacity is comparable for hotel rooms as it used to be pre pandemic and the hotels are able to charge more than they used. For the general fund, we are nearing 100%. As mentioned in the past, this is due to two areas 1) is our retail sales tax is coming in much better than anticipated, and 2) due to development activity that is above expectations. All the other funds are pretty much where we anticipate them. That one exception is the Water Fund it shows that it is at 61%. That is a combination of two factors. We estimated higher on our budget for the commodity revenues than what we are receiving. In addition, the next item that affects that is that a portion of that percentage is 61% is transfers that have not taken place. However, all the fronts are very well. The same holds true for our expenditures. We are pretty much where we anticipated being at this time of year. In some cases, we are lower than what we had anticipated. Some of this deals with delayed purchases and construction. The Town continues to experience delays in receiving goods, as they are not there. Sometimes the delays can take anywhere from six to nine months to receive orders that were placed, including vehicles. In the Transportation Fund,we are moving forward with the designing of many projects. As Mr. Rozema stated earlier one of our big projects, the Community and Aquatics Center is moving forward. The Town is experiencing some budget appropriation issues with morning project on Adams project in the past that came in way above what we thought we budgeted. Therefore, we are not stopping, but we are reevaluating those as we move into next budget cycle. He reviewed the Water Operating Fund again stating, we are at 61%. He pointed out that our charges for services is at 69%. Therefore, that is a little bit lower than the 75% approximately would like to see it at this time of the year. Mr.Kalaitzidis stated that the Town is trending higher than the two previous fiscal years, as the town budgeted a little more optimistically than we should have when the budget was developed. Our Airport Fund is doing as anticipated. Charges for services are at 79%. It is lower than where it was last year at this time,but that is due to two factors. One is we no longer have Marana Regular Council Meeting Summary Minutes May 17,2022 Page 13 the commercial aircraft, that was parked at the airport for the majority of or the first half of the year actually last year. Additionally, we are no longer an entertaining any non- aeronautical activities at the airport,as part of FAA regulations. As a result,the revenues are reduced in that fund. However,it is meeting our budget expectations. We anticipated that we budgeted for that and we are we are supposed to be. Mr. Kalaitzidis stated that the interactive presentation would be available on the Town's website under the Finance Department. CONSENT AGENDA Cl Resolution No. 2022-045: Relating to Personnel; approving and adopting amendments to the Personnel Policies and Procedures; revising Chapter 1 - General Employment Rights and Responsibilities,Section 1-2-8 "Use of Public Property," Chapter 2, Employment Process, Section 2-1-4 "Non-Competitive Process", Section 2-6-1 "Procedure",Chapter 3-Classification and Compensation,Section 3-7-4 "On Call/Stand- By Assignments and Pay", Section 3-7-5 "Shift Differential Pay" Chapter 4 - Employment Benefits and Leaves, Section 4-8-5 "Town-Assigned Administrative Leave", Chapter 6 - Performance Management and Employee Development, Section 6-2-6 "Application and Reimbursement Procedures", Section 6-4-2 "As a Condition of Professional Growth", Chapter 7 - Safety and Health, Section 7-5-6 "Drug Testing" (Curry C. Hale) C2 ResolutionNo. 2022-046: Relating to Parks and Recreation; approving and authorizing the Parks and Recreation Director to execute a Facility Usage Agreement between the Town of Marana and Leman Academy of Excellence, Inc. (Jim Conroy) C3 Resolution No. 2022-047: Relating to Development; approving the final block plat for Mandarina Blocks 1-7 and Parcels A,B&C,generally located north of Tangerine Road and east of Interstate 10 within portions of Section 36, Township 11 South and Range 11 East and Section 31, Township 11 South and Range 12 East (Steve Cheslak) C4 Resolution No. 2022-048: Relating to Administration; designating Yiannis Kalaitzidis as the Chief Fiscal Officer for officially submitting the Fiscal Year 2023 Expenditure Limitation Report to the Arizona Auditor General (Libby Shelton) 5. C5 Approval of the Regular Council Meeting Summary Minutes of May 3, 2022 (Cherry L. Lawson) Council Member Kai moved and Vice Mayor Post second the motion to approve the Consent Agenda as presented. Motion passes unanimously, 7-0. LIQUOR LICENSES Marana Regular Council Meeting Summary Minutes May 17,2022 Page 14 BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al Resolution No. 2022-049: Relating to Real Estate; approving and authorizing the Mayor to sign the Easement Purchase and Sale Agreement in favor of Metropolitan Domestic Water Improvement District and an Electrical Right-of-Way Easement in favor of Trico Electric Cooperative, Inc. over Marana Regional Airport property (George Cardieri) Real Property Manager George Cardieri provided an overview of Resolution No. 2022- 049 approving and authorizing the Mayor to sign the Easement Purchase and Sale Agreement in favor of Metropolitan Domestic Water Improvement District and an Electrical Right-of-Way Easement in favor of Trico Electric Cooperative,Inc. over Marana Regional Airport property. Metropolitan Domestic Water Improvement District has submitted a real property application request for a new easement over Marana Regional Airport property to serve power to one of their future well sites for the Northwest Recharge Recovery and Delivery System. Metro has agreed to acquire the easement on behalf of Trico for $8,000, which is the town's estimated value based on the current market analysis. If approved, Metro will install an underground conduit through the easement area for Trico service line, and would be obligated to restore the surface area to the to the town satisfaction. The easement request has been fully evaluated by all concerned town departments and is acceptable to town staff. Council Member Kai moved and Vice Mayor Post second the motion approving Resolution No. 2022-049. Motion passes unanimously, 7-0. A2 Ordinance No. 2022.009: Relating to Finance; amending the Town of Marana Comprehensive Fee Schedule; and designating an effective date (Yiannis Kalaitzidis) Resolution No. 2022-050: 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. 2022.009 (Yiannis Kalaitzidis) Mr. Kalaitzidis provided an overview of Ordinance No. 2022.009 and Resolution No. 2022-050 amending the Town of Marana Comprehensive Fee Schedule and designating an effective date. As presented to Council on March 15 as part of our annual process, we review our fees and work internally to ensure that those fees are appropriate and relevant. The Town Marana Regular Council Meeting Summary Minutes May 17,2022 Page 15 works to ensure that we streamline wherever possible to make them more usable and modernized for our customers. The Town does not expect any significant financial impact to our revenues from the changes and recommendations we are making tonight. Town staff continue to upgrade and simplify the fees, as we have reached out to our stakeholders, including Sahba for comments. In addition to posting all the required notices,both 60 and 15 days before this meeting. The Town received positive comments from Sahba, as they appreciate us providing fees that are in packages making it easier. Town staff is seeking Council's approval for the amendments to the Comprehensive Fee Schedule. If approved and after this evening meeting, the fees will become effective on July 1. Vice Mayor Post, moved and Council Member Officer second the motion approving Ordinance No. 2022.009 and Resolution - No. 2022 050 amending the Town of Marana Comprehensive Fee Schedule and designating an effective date. Motion passes unanimously, 7-0. A3 PUBLIC HEARING: Resolution No. 2022-051: Relating to Budget; adopting the fiscal year 2022-2023 tentative budget (Yiannis Kalaitzidis) [6:18 PM Minutes] Mayor Honea opened the item to receive public testimony. Mr. Kalaitzidis provided a PowerPoint Presentation on this item. A brief overview of the presentation is provided below. (A copy of the presentation is on file in the Town Clerk's Office for review, as well as available on the town's website at www.maranaaz.gov for viewing of the video of the item.) • The Tentative Budget is presented on the required Auditor General Forms o Schedule A - Summary Schedule of Estimated Revenues and Expenditures/Expenses o Schedule B - Tax Levy and Tax Rate Information o Schedule C - Revenues Other Than Property Taxes o Schedule D - Other Financing Sources/<Uses> and Interfund Transfers o Schedule E - Expenditures/Expenses by Fund o Schedule F - Expenditures/Expenses by Department (as applicable) o Schedule G - Full-time Employees and Personnel Compensation • Expenditure by Category $233.5 Million o Operating, $95.0M = 41% o Debt Service, $13.2M = 5% o Capital Outlay $125.3M = 54% • Revenues - $161.7M o Sales Tax, $50.5M = 29% Marana Regular Council Meeting Summary Minutes May 17,2022 Page 1 6 o Bonds/loan, 15.2M = 9% o Other, 11.7M = 7% o Charges for Services, $11.9M = 7% o Licenses, Permits and Fees, $23.7M = 14% o Intergovernmental, $60.1M = 35% • FY2023 Tentative Budget Summary o General Fund $ 73,268,176 o Special Revenue Funds 10,487,968 o Capital Projects Funds 69,992,530 o Debt Service Funds 6,405,137 o Enterprise Funds 56,594,941 o Internal Service Funds 5,289,950 Primary entity 222,038,702 o Component Units o Special Districts 11,454,435 • Total $ 233,493,137 Council Member Craig stated Ben Bernanke, the Federal Chair just recently predicted stagflation, asking whether this comment give the Town any pause in the budget. Mr. Kalaitzidis replied stating the Town do monitor news on a daily basis, as we have an ever-changing economic environment.We are thankful that our revenues have been very strong recently,but we are moving forward cautiously. However and unfortunately, this time there are many opinions and what we would like to see is more data. We would like to see more information, but we are taking all the opinions very seriously. He believes the Town would be in a good position to respond provided there are no catastrophic events. However, even then, we are still in a sound financial position. [6:29 PM Minutes] Mayor Honea closed the public hearing to public testimony. Council Member Kai moved and Council Member Ziegler second the motion to establish the overall expenditure limitation for fiscal year 2022/2023 at $233.5M, adopting Resolution No. 2022-051. Motion passes unanimously, 7-0. ITEMS FOR DISCUSSION/POSSIBLE ACTION D1 Relating to Public Art; discussion and selection of a name for the public art piece at the roundabout located at Sandario Road and Marana Main Street (Andrea Caicedo) Assistant to the Town Manager Andrea Caicedo provided an overview of the item stating Council approved the design of a public art project that would go in the center island of the Sandario Road and Marana Main Street roundabout. The Public Art project was made possible by a grant from Pima Association of Governments, Transportation, Marana Regular Council Meeting Summary Minutes May 17,2022 Page 17 Mayor Honea reported that he believes that it will be in June, maybe early for the budget to be adopted. The biggest problem the state has since they have too much money, and they are trying to figure out what to do. 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). 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 Officer second the motion to adjourn the meeting. Motion passes unanimously 7-0. Meeting adjourned at 6:37 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on May 17, 2022. I further certify that a quorum was or present i 041 i 7—#--- Cherry L. La so , Town Clerk APCSOk Marana Regular Council Meeting MAA AZ Summary Minutes ESTABLISHED 1 9 7 7 May 17,2022 Page 19