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HomeMy WebLinkAbout11-01-2022 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, November 1, 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 MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:01 PM and directed the Town Clerk to call the roll. Vice Mayor Post was excused. All other Council Members were present, constituting a quorum. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE: Led by Mayor Honea. APPROVAL OF AGENDA Council Member Ziegler moved to approve the agenda as presented. Council Member Officer seconded the motion. Motion passed, 6-0. CALL TO THE PUBLIC PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Council Regular Meeting Summary Minutes November 1,2022 Page 1 of 13 Mayor Honea commented on the recent Arizona Association for Economic Development conference, the Parsons Steel's 50th Anniversary event, and the Cortaro Water Users' Association Customer Appreciation Luncheon event. Council Member Ziegler commented on the Oro Valley State of the Town and on a donation given to the Oro Valley Chamber of Commerce. MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Town Manager Terry Rozema said the Town issued 38 single-family residential permits in October. Last October, there were 128 permits issued. He commented on the Senior Resource Fair, the upcoming Turkey Trot, and the draining of the El Rio Preserve. Mr. Rozema also provided an update on the multi-generational community center and highlighted that Marana was recently featured in the Arizona Golf Insider magazine. PRESENTATIONS CONSENT AGENDA Cl Resolution No. 2022-109: Relating to Development; approving the final plat for Stack Self-Storage, Lots 1 and 2 located north of Silverbell Road and west of Coachline Boulevard within Section 28, Township 12 South and Range 12 East (Brian D. Varney) C2 Resolution No. 2022-110: Relating to Development; approving and authorizing the Mayor to execute the Termination of Development Agreement between Old Lobo Villagio, LLC and the Town of Marana acknowledging termination of the Tangerine/Thornydale Development Agreement (Jane Fairall) C3 Resolution No. 2022-111: Relating to Public Works; approving and authorizing the Mayor to execute a termination agreement between the Regional Transportation Authority of Pima County and the Town of Marana to terminate the Wildlife Linkages Amendment to Intergovernmental Transportation Funding Agreement for construction of improvements to Tangerine Road - Dove Mountain Boulevard/Twin Peaks Road to La Canada Drive (Jane Fairall) C4 Resolution No. 2022-112: Relating to Utilities; approving and authorizing the Mayor to sign agreements for construction of water and sewer facilities under private contract with Southern Arizona Logistics Center, LLC (David L. Udall) C5 Resolution No. 2022-113: Relating to Utilities; approving and authorizing the Mayor to sign an amendment to the Intergovernmental Agreement, effective December 1, 2022, between the Town of Marana and Pima County for provision of water consumption data and sewer user account billing services (Jing Luo) Council Regular Meeting Summary Minutes November 1,2022 Page 2 of 13 C6 Resolution No. 2022-114: Relating to Real Estate; approving and authorizing the Town Engineer to execute a Temporary Construction Easement granting Pima County the right to enter upon and to construct underground force main sewer pipelines through Town owned properties in the vicinity of the Santa Cruz River Park and El Rio Preserve (George Cardieri) C7 Approval of the Regular Council Meeting Summary Minutes of October 18, 2022 (David L. Udall) Council Member Kai moved to approve the Consent Agenda. Council Member Ziegler seconded the motion. Motion passed, 6-0. LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION Al PUBLIC HEARING: Ordinance No. 2022.024: Relating to Development;approving an amendment to the Sanders Grove Specific Plan, including comprehensive revisions to the Land Use Plan, an increase in the maximum number of residences permitted, and a change of the name of the plan to Ranch House Specific Plan, for the 841-acre specific plan area located north of Marana Road, east of Wentz Road, and west of Sanders Road; and approving a minor amendment to the Marana General Plan to amend the Future Circulation Map as it applies to the specific plan area (Brian D. Varney) Resolution No. 2022-115: Relating to Development; declaring as a public record filed with the Town Clerk the Ranch House Specific Plan Amendment adopted by Ordinance No. 2022.024 (Brian D. Varney) Mayor Honea opened the public hearing at 6:11 PM. Senior Planner Brian Varney presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk's Office. Mr. Varney explained the proposed amendment changes the name of the specific plan from Sanders Grove to Ranch House and proposes the following major changes to the plan: • New land use concept plan (see presentation slides for depictions) o Redesigned traffic circulation and open space o Land use categories and area allocations have changed • Increased number of residential units Council Regular Meeting Summary Minutes November 1,2022 Page 3 of 13 o Proposed increase from 2,500 units to 3,200 units, plus up to 300 units to be built as rental homes o Maximum of 12% (384) of 3,200 units between 3,500 square feet and 4,500 square feet, and only in medium-high density residential (MHDR) o Remainder of lots must be a minimum of 4,500 square feet • Allow for attached and detached housing on smaller lots within MHDR o Attached and detached housing product on lots between 3,500 square feet and 4,500 square feet in MHDR • Allow for multi-family residential use within the Commercial (C) land use designation only as a detached rental product Mr. Varney said the minor General Plan amendment was limited to the Future Circulation Map, which currently specifies a future right-of-way width of 150 feet for Kirby Hughes Road and 190 feet for Hardin Road. However, the Sanders Grove Specific Plan and development agreement specify a right-of-way width of 90 feet for Kirby Hughes Road and 60 feet for Hardin Road.The proposed amendment to the General Plan would reduce the right-of-way width sizes accordingly.For a depiction of the Circulation Map, please see the presentation slides. Mr. Varney said the Planning Commission considered the proposal on September 28, 2022 and unanimously (6-0) recommended approval to the Town Council, subject to the recommended conditions and with the additional condition of restricting "apartment- style multi-family housing." Mr.Varney said this was subsequently interpreted by Town staff as a condition prohibiting attached multi-family, apartment-style housing. Keri Silvyn with Lazarus & Silvyn, PC presented on behalf of the applicant. A copy of the PowerPoint presentation is on file with the Town Clerk's Office. Ms. Silvyn said the request involved increasing the density of the specific plan to 4.2 residences per acre (RAC). She explained the new vision for the specific plan, including the focus on parks and rear-loaded homes, and showed concept depictions that can be viewed in the presentation slides. Ms. Silvyn explained that in order to avoid the look of narrow, packed-together homes, the 3,500-square-foot lots would maintain the same width as the 4,500-square-foot lots (45 feet) and that the depth of the lots would be reduced. She also clarified that the proposal requesed multi-family residential uses designed as single-family/townhomes be permitted within the Commercial designation and that they be allowed to be attached. Council Regular Meeting Summary Minutes November 1,2022 Page 4 of 13 Council Member Comerford expressed concern about grass in the parks. Ms. Silvyn explained the applicant would follow the Town's guidelines related to grass. Randy Bury with Moderne Communities, LLC said that artificial grass would be used. Council Member Craig complemented the concept designs and the different and varied sizes of proposed housing products. She asked what the houses would look like. Mr. Bury provided a brief explanation of the transitional architecture planned. Council Member Kai asked about the pricing of the 3,500-square-foot lots as compared to the 4,500-square-foot lots. Mr. Bury said there would be a difference in price, but said he could not give specific numbers due to the dynamic housing market conditions. Council Member Ziegler agreed with Council Member Craig on the applicant bringing forward different housing products to the Town. She asked if the homeowners' association (HOA) parks would be open to the public. Ms. Silvyn said the HOA parks would be for HOA members and their guests. Council Member Ziegler asked about the project timeframe. Mr. Bury said his goal was to start development around the end of next year or the first quarter of the following year. Council Member Officer commented about an experience in a similar community in East Mesa and praised the plan. He requested trails that would connect the parks. Mayor Honea expressed concern regarding the 3,500-square-foot lot sizes. Mr. Patrick Lim addressed the Council and asked about potential Section 8 housing in the proposed development. Mayor Honea said he does not believe the proposed development will have Section 8 housing. Mayor Honea closed the public hearing at 6:48 PM. Council Member Ziegler moved to adopt Ordinance No. 2022.024 and Resolution No. 2022-115. Council Member Comerford seconded the motion. Town Attorney Jane Fairall reminded the Council about adding the condition requiring minimum lot width for detached product in the MHDR land use designation to be 45 feet. Council Member Ziegler amended her motion to include Ms. Fairall's recommendation and Council Member Comerford seconded the motion, as amended. Motion to adopt Ordinance No. 2022.024 and Resolution No. 2022-115, as amended to include the condition requiring minimum lot width for detached product in the MHDR land use designation to be 45 feet, passed, 6-0. Council Regular Meeting Summary Minutes November 1,2022 Page 5 of 13 A2 PUBLIC HEARING: Relating to Development;public hearing regarding the intent to assess development impact fees for street facilities, park facilities, water facilities, water reclamation facilities, and water resources, pursuant to Arizona Revised Statutes section 9-463.05 (Fausto Burruel, Jim Conroy,Jing Luo) Public Works Director Fausto Burruel and Water Director Dr. Jing Luo presented on this item. Copies of both PowerPoint presentations are on file with the Town Clerk's Office. Mr.Burruel provided an overview of the next step in the process of adopting impact fees, which is the establishment of the fees. Mayor Honea opened the public hearing at 6:50 PM. Mr. Burruel explained that impact fees can only be assessed, and credits given, for new improvements and not for maintenance. They cannot be used to improve existing deficiencies, must be proportionate, and must use current land use assumptions and infrastructure needs for a ten-year cycle. The land use assumptions and infrastructure improvement plans must be updated at lease every five years. Mr. Burruel then provided a summary of the following: • Street Impact Fee Calculations o Methodology: ■ Determined existing level of service and users of infrastructure ■ Calculated equivalent dwelling unit (EDU) relationships ■ Forecasted growth in the next 10 years ■ Determined infrastructure needed to serve the future growth ■ Determined portion of infrastructure attributable to the growth (the raw cost per EDU) ■ Assigned credits for concurrent revenues (if applicable) o Mr. Burruel showed a slide comparing the land use assumptions from the 2017 final report with the 2022 final report and said that when the 2022 land use assumptions were developed,the economic climate was a little different from what it is now. He also said that the impact fee process takes place every five years, and indicated it could be initiated earlier if desired. He said the majority of the Town's growth and commercial projects are anticipated to be in northwest Marana. o Mr. Burruel showed a streets fee service area slide and said the boundaries have not changed. The boundaries are set by geographic features (such as I-10,the Central Arizona Project(CAP)canal,and the Santa Cruz River)and by travel patterns. Council Regular Meeting Summary Minutes November 1,2022 Page 6 of 13 o Mr. Burruel showed slides outlining the projected transportation projects in the northwest,northeast,and southern areas along with a slide providing a summary of infrastructure costs. Please see the presentation slides for details. o Mr Burruel then provided a summary of the final fee process as follows: ■ The Infrastructure Improvement Plan (IIP) determines what infrastructure is required due to projected growth, but infrastructure provided likely yields more capacity than what is needed. ■ The fee study determines the proportional cost per EDU. This sets the Raw Impact Fee. ■ The fee study must also take into account other revenues that the Town receives and credit them against the Raw Impact Fee. This creates the Base Impact Fee, which is what is published as the "Impact Fee." ■ Should a developer build infrastructure that is part of the original IIP, the cost of that infrastructure is also credited against the Base Impact Fee. Mr. Burruel showed a slide providing an example of a construction sales tax credit. For more information, please see the presentation slides. o Mr. Burruel showed a slide with a table providing a detailed summary of the streets facilities fees. For more information, please see the presentation slides. • Parks Impact Fee Calculations o Mr. Burruel explained that the Council has already seen the parks impact fees in the documents accompanying the previous presentation of the land use assumptions and IIP.He said there were a few items needing correction, and that the corrections would be brought before Council at the December 6, 2022 Town Council meeting. He showed tables relating to the approved IIP for parks, and a summary of the base park impact fees. Please see the presentation slides for more information. Mr. Burruel showed a slide summarizing the 2022 proposed base impact fees for streets and parks as compared to the current, 2017 base impact fees. The current impact fees for Northwest Marana streets, Northeast Marana streets, South Marana streets, and parks (Town-wide) are$3,719,$4,291, $4,327, and$2,461, respectively. By comparison,the 2022 proposed impact fees for those same areas are $2,206, $4,739, $4,759, and $2,530, respectively. Council Member Ziegler asked what the impact fees would be for building a $350,000 home. Mr. Buruell explained that it would depend on where the house is located for the Council Regular Meeting Summary Minutes November 1,2022 Page 7 of 13 streets and water-related fees. He said there is a GIS map that has been developed to help identify the cost for a particular location. Council Member Ziegler asked for an average total cost of what The Town's impact fees are. Deputy Town Manager Erik Montague said a fully loaded, 2017 impact fee currently ranges from $13,000 per lot to $16,000 per lot, depending upon where the development occurs. Council Member Ziegler asked if the Town's impact fees were higher than in Oro Valley and Tucson, and Mr. Burruel responded that they are due to different infrastructure needs. Dr.Luo presented on the water facilities,water reclamation facilities,and water resources impact fees as follows: • Impact Fee Process Overview o The purpose of these fees is to recover infrastructure and resources costs to serve new customers from 2023-2032. o Growth and cost projections were completed based on the Town's land use assumptions and recently adopted IIPs. o Growth-related costs were capped at existing service levels. o The impact fee is a unit cost calculated by: growth-related costs divided by EDUs. • Two calculation methods for water-related impact fees were utilized: o Incremental Method ■ Utilized for new development supported by new infrastructure. • Calculation: Projected costs divided by projected new EDUs equals the unit cost for the impact fee. ■ This method was used for the water infrastructure impact fee. o Hybrid Method ■ Utilized for new development supported by both existing and new infrastructure (for example: the wastewater treatment facility - has additional capacity that can be used to support new development). • Calculation: Costs for existing infrastructure plus the costs of new infrastructure divided by the total benefiting EDUs (existing and future) equals the unit cost for the impact fee ■ This method acknowledges costs already incurred to serve new development and recovers new development's proportionate share. ■ This method was used for the water resources and water reclamation impact fees. • Water Infrastructure Impact Fee Calculations Council Regular Meeting Summary Minutes November 1,2022 Page 8 of 13 o The incremental method was utilized. o Benefit Areas: North Marana,Twin Peaks,Saguaro Bloom,Palo Verde, and the IGA area. o The projected new EDUs added within the next ten years are as follows: 8,821 in North Marana,1,988 in Twin Peaks,850 in Saguaro Bloom, and 546 in the IGA area; totaling approximately 12,205. o New infrastructure projects were identified in only two benefit areas:North Marana and Twin Peaks. For capital improvement projects that benefit two areas simultaneously, the cost was allocated proportionately to the EDU increase. For projects specific to a benefit area, the cost was allocated directly to that benefit area. o Other eligible costs included the Water Master Plan cost, the Impact Fee Study, and the Hartman Vistas debt previously utilized for a project. o Credit was provided for existing fund balance. o The fee was calculated per EDU and scaled by AWWA meter capacity ratios. o Dr. Luo showed slides depicting the water infrastructure benefit areas and outlining the water infrastructure impact fee unit cost. Please see the presentation slides for details. • Water Reclamation Impact Fee Calculations o The hybrid method was utilized. o Single benefit area: Town Designated Management Area (DMA). o Benefiting EDUs for the Water Reclamation Facility (WRF) and Recharge Basin: 21,490 EDUs. • Current 1.5mgd capacity will have capacity until 2027 • New 1.5mgd expansion will provide capacity beyond 2032 • Total capacity recognizes all customers who will use WRF • 3mgd / 139.6gpd per EDU = 21,490 EDUs o For the collection system, the incremental method was utilized (9,267 new EDUs). o Other eligible costs included the Sewer Master Plan and Impact Fee Study. o Credit provided for existing fund balance o The fee was calculated per EDU and scaled by AWWA meter capacity ratios. o Dr. Luo showed slides depicting the sewer service area and outlining the water reclamation unit cost. Please see the presentation slides for details. • Water Resources Impact Fee Calculations o The hybrid method was utilized. Council Regular Meeting Summary Minutes November 1,2022 Page 9 of 13 o Single benefit area: entire water service area. o Benefiting EDUs: 14,467. • WRF effluent: 3mgd / 270gpd per EDU = 11,111 EDUs • Additional resources acquisitions: • NIA/CAP: 242 AFY (216,044 gpd) / 270 gpd per EDU = 800 EDUs • Other acquisitions: 773 AFY (690,090 gpd) / 270 gpd per EDU = 2,556 EDUs • Total: 14,467 EDUs o Other eligible costs included the Integrated Water Resources Master Plan and the Impact Fee Study. o Credit was provided for existing fund balance. o The fee was calculated per EDU and scaled by AWWA meter capacity ratios. o Dr. Luo showed a table outlining the water resources unit cost. Please see the presentation slides for details. Dr. Luo showed a slide summarizing the 2022 proposed impact fees for water infrastructure, water reclamation, and water resources as compared to the current, 2017 impact fees. The current water infrastructure impact fees for a five-eighth-inch water meter in the North Marana, Twin Peaks, and Saguaro Bloom benefit areas are $2,331, $2,740,and$838,respectively. The current water resources and water reclamation impact fees for a five-eighth-inch water meter are$3,050 and$3,930,respectively. By comparison, the 2022 proposed water infrastructure impact fees for a five-eighth-inch water meter in the North Marana, Twin Peaks, and Saguaro Bloom benefit areas are $3,356, $4,704, and $838,respectively. The 2022 proposed water resources and water reclamation impact fees for a five-eighth-inch water meter are $5,357 and $4,995, respectively. For current and proposed impact fee rates for other meter sizes, please see the presentation slides. Dr. Luo explained the primary drivers of the water-related impact fees involved the infrastructure required to meet the rapid growth of the Town,the Council's direction that development should pay for the cost of growth,inflation and increased constriction costs, and the increased cost of water resources. She said the Town has made efforts to reduce the impact fee amounts, and highlighted that the Town expended several million dollars to help fund the NWRRDS projects,phase one of the water reclamation facility,and sewer collection augmentation projects. Dr. Luo presented a slide comparing the 2017 impact fees comprising 4.3% of the average Marana home value to the proposed 2022 impact fees comprising 3.7% of the average Marana home value. Please see the presentation slides for details. Council Regular Meeting Summary Minutes November 1,2022 Page 10 of 13 Mr. Burruell provided a timeline on the impact fee process. The impact fees are scheduled to come before Council for Council action at the December 6th, 2022 meeting. If adopted, they will take effect 75 days from that date. Mr. David Godlewski addressed the Council on behalf of the Southern Arizona Home Builders Association. Mr. Godlewski recognized the work Town staff put into the fees and the leadership of the Town Council. He said that, in light of economic uncertainty and increased home prices, the proposed impact fees are concerning. He proposed adopting the parks and streets impact fee studies, but not implementing any increases. He also voiced opposition to the water and sewer impact fee studies as presented. Mr. Ben Buehler-Garcia addressed the Council on behalf of the Arizona Multihousing Association. Mr. Buehler-Garcia said that, in light of the current housing affordability crisis, it is the wrong time to raise fees, especially as high as the water-related impact fees are proposed to be raised. Council Member Ziegler asked what would happen if the Town did not pass some of the proposed impact fees at this time. She also requested the Council consider whether this was the right time to adopt higher fees. Council Member Kai asked if adjustments could be made. Mr. Burruel explained it was difficult to predict what will happen with a ten-year horizon, but that the impact fee statute required the Town to go through the adoption process every five years. He said there was nothing prohibiting the Town from going through the process more frequently. Town Attorney Jane Fairall explained the Town must adopt fees within 30 and 60 days of this hearing. If the Town does not adopt new fees, it may not be able to charge any impact fees. Ms. Fairall explained the amount of the impact fees is within the Council's discretion. She said the fees presented were supported by the land use assumptions, the IIPs, and the calculations developed during this impact fee adoption process, and that such a record would not support the adoption of other fees chosen by the Council. She also said the Town does not need to wait five years to start the statutory impact fee adoption process again. Mayor Honea said that while the Town's impact fees were the highest in Southern Arizona, the Town was also the fastest-growing community in Southern Arizona. He said someone needed to pay for the infrastructure required for new growth. If the fees were not assessed to the new growth, then existing taxpayers would have to pay for it, which could result in less money for police, etc. Mayor Honea closed the public hearing at 7:52 PM. Council Regular Meeting Summary Minutes November 1,2022 Page 11 of 13 A3 Resolution No. 2022-116: Relating to Emergency Management; approving and authorizing implementation of the 2022 Pima County Multi-Jurisdictional Hazard Mitigation Plan (Curry C. Hale) Human Resources Director Curry Hale, Safety and Emergency Management Coordinator Rita Lebsack, and Sergeant Jose Alvarez presented on this item. A copy of the PowerPoint presentation is on file with the Town Clerk's Office. Mr. Hale provided a brief introduction. He said the multi-jurisdictional hazard mitigation plan is renewed every five years and that it is required in order for the Town to receive Federal Emergency Management Agency (FEMA) funding. Ms. Lezback said the purpose of the plan was to identify natural hazards impacting incorporated jurisdictions within Pima County and to develop mitigation strategies to address them. Sergeant Alvarez provided the following example: On July 10,2018, a Union Pacific train derailed between Twin Peaks Road and Avra Valley Road due to exceptionally heavy monsoon rains. He said the mitigation response required efforts from multiple jurisdictions in the region. Council Member Kai moved to adopt Resolution No. 2022-116. Council Member Comerford seconded the motion. Motion passed, 6-0. ITEMS FOR DISCUSSION/POSSIBLE ACTION D1 Relating to Development and Public Works; update, discussion, and possible direction regarding public and private projects and development applications on the Town's Marana Current and Proposed Projects internet site (Jason Angell) Development Services Director Jason Angell provided an update on public and private projects and development applications in the Town, as currently listed on the following website:https://experience.arcgis.com/experience/9bcda179c412496a8be2a5af29727745 L. During the presentation, Mr. Angell answered questions about the various projects. 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). Council Regular Meeting Summary Minutes November 1,2022 Page 12 of 13 E2 Executive session pursuant to A.R.S. §38-431.03 (A)(4) for discussion and consultation with and instructions to the Town's attorneys regarding the pending litigation entitled Town of Marana v Pulte Home Company, LLC, Pima County Superior Court Case No. C20205095. Mayor Honea asked for a motion to go into executive session on Item E2. Council Member Ziegler moved to go into executive session. Council Member Kai seconded the motion. Motion passed, 6-0. [An executive session on Item E2 was held, beginning at 8:08 PM and concluding at 8:31 PM.] Mayor Honea stated the meeting was back in open session. Town Attorney Jane Fairall requested a motion to direct staff to proceed as discussed in the executive session. Council Member Comerford moved to direct staff to proceed as discussed in the executive session. Council Member Officer seconded the motion. Motion passed, 6-0. FUTURE AGENDA ITEMS Mayor Honea asked for future agenda items. There were no future agenda items. ADJOURNMENT Mayor Honea asked for a motion to adjourn the meeting. Council Member Comerford moved to adjourn the meeting. Council Member Kai seconded the motion. Motion passed, 6-0. Meeting adjourned at 8:31 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on November 1, 2022. I further certify that a quorum was present. David L. Udall, Town Clerk 06 MARANA AZ L$TAOLIS4 ' Council Regular Meeting Summary Minutes November 1,2022 Page 13 of 13