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HomeMy WebLinkAbout03-13 to 3-15-2023 Special Council Meeting Retreat Summary Minutes MARANA AZ CELEBRATING 45 YEARS MARANA TOWN COUNCIL SPECIAL COUNCIL MEETING/RETREAT Wigwam Resort, 300 E.Wigwam Blvd., Litchfield Park, AZ 85340 March 13-15,2023 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 SPECIAL COUNCIL MEETING/RETREAT SUMMARY MINUTES [Each item on the agenda was subject to presentation, discussion, and possible direction from Council. All agendized times in the left column are approximates only. Actual times are included in the body of the minutes.] Monday, March 13, Travel to The Wigwam Resort- Council and Staff on their own 2023 3:00PM- Welcome and Retreat Overview 3:30PM Mayor Honea called the meeting to order at 3:00 PM and directed the Town Clerk to call the roll. Council Member Kai was absent when the meeting began, but was present thereafter,beginning at 3:43 PM. All other Council Members were present, constituting a quorum. Town staff present at the meeting included the following: Special Council Meeting/Retreat Summary Minutes March 13-15,2023 • Present for all three days: Town Manager Terry Rozema, Deputy Town Manager Erik Montague, Assistant to the Town Manager Andrea Caicedo, Town Attorney Jane Fairall, Town Clerk/Assistant Town Attorney David Udall, Public Works Director/Acting Town Engineer Fausto Burruel, Deputy Public Works Director Jennifer Flood, Development Services Director Jason Angell, and Water Director Jing Luo. • Present for the first two days: Finance Director Yiannis Kalaitzidis. • Present for the afternoon of Wednesday, March 14, 2023: Economic Development Director Curt Woody. Town Manager Terry Rozema welcomed everyone to the meeting and provided a brief overview of topics. He welcomed thoughts, feedback, and direction from Council. 3:30PM- Capital Improvement Program: Presentation and discussion of Draft Town of 5:00PM Marana Five-Year Capital Improvement Program for Fiscal Years 2024 through 2028 Presentation by: Fausto Burruel, Jennifer Flood &Jing Luo Public Works Director/Acting Town Engineer Fausto Burruel, Deputy Public Works Director Jennifer Flood, and Water Director Jing Luo presented on this item. A copy of the presentation slides is on file with the Town Clerk's Office. Please see the slides for more detail and to view images, tables, charges, graphs, and other visual information. Town staff answered clarifying questions during the presentation. To view listed projects, please see the presentation slides. A summary of the Council's discussion on this topic is as follows: Regarding the Twin Peaks Road, Rattlesnake Pass Widening project, which involves widening the road into a four-lane road and signalizing an intersection, Council Member Craig said the Coalition for Sonoran Desert Protection's newsletter indicated the Coalition was raising funds for a wildlife bridge. Mr. Rozema stated he had not heard that, and it was his understanding that the Regional Transportation Authority (RTA) would be utilizing Arizona Department of Game and Fish funding to complete a design of the bridge. Mr. Burruel, Deputy Public Works Director Jennifer Flood, and Water Director Jing Luo showed several funding schedule tables outlining various airport, transportation, facilities, park, and water/wastewater improvement projects, 2 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 general fund projects, and other projects. To view the project tables, please see the presentation slides. Regarding the Airport Tower project, Council Member Ziegler asked when the project would be completed. Mr. Rozema said the Town is hoping for completion by December 2024. Mr. Burruel explained the five-year deadline imposed by the Federal Aviation Administration(FAA)to complete the tower as part of the federal funding requirements, and said the Town has had and would continue to have discussions with the FAA regarding the deadline. He said the Town received its approval letter December of 2019,shortly before the COVID-19 pandemic,and that there have been considerable roadblocks that have delayed the project. He explained the FAA does not have an extension mechanism and does not take COVID-19 into account. Under the FAA's current stance, it does not appear possible to complete the project in 2024,but Town staff is attempting to work with the FAA regarding this. Mayor Honea asked if the Town would lose all federal funding for the project if not completed on time,and Mr.Burruel said they have not received a clear answer on that yet from the FAA. Mayor Honea said he would be really upset if the Town lost funding, and that the Town has been working to get this tower for ten years. [Council Member Kai joined the meeting.] Mr. Rozema said the FAA has been slow getting back to the Town. Mayor Honea said there are some political options available, such as working through senators or legislators that are up for re-election,and that quick action was needed. Council Member Ziegler said the tower has been advertised and that individuals with aircraft are looking forward to the tower being at the airport. She said this was a safety issue and requested Mayor Honea to immediately put pressure on those who could influence this project. Council Member Kai agreed. Mayor Honea said this should not be put on the backburner and that he would do everything he could. Council Member Ziegler asked if the Town had money involved,and Mr.Burruel said it does, but not much. Council Members Comerford and Ziegler expressed the Council's support for Mr. Burruel and his team on this issue. Regarding the Marana Municipal Complex Landscape Improvements project, Mayor Honea requested that zeroscaping not be considered by staff until it comes before the Council for consideration. Mr. Rozema highlighted Parks and Recreation Director Jim Conroy's concern at removing all grass at the Municipal Complex because it would impact Town special events and noted the increased 3 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 heat generated by zeroscape landscaping. He said Mr. Conroy would look into the amount of zeroscaping and that Town staff would bring his recommendations before Council. Council Member Craig said the Municipal Complex need not be completely zeroscaped, and that artificial turf could be employed instead of grass. Regarding the Mandarina Community Park project, Ms. Flood explained the Town and developer were in conversations regarding whether the Town or the developer would install a park in the detention basin. Mayor Honea and Council Member Ziegler expressed their understanding that the developer was required to build the park and that the Town would reimburse the developer through impact fees. Town Attorney Jane Fairall explained that nothing in the development agreement addressed the park because the parties at the time the agreement was negotiated did not contemplate such a park and did not until after the basin was completed. She said the park was put in the infrastructure improvement plan(IIP) because the Town thought it would be a good project and that there will likely be a development agreement amendment at some point that comes before Council regarding the park. Mayor Honea expressed his desire for the developer to build the park. Mr. Rozema said that had been the nature of the discussion thus far with the developer, but that the developer expressed it will not construct the park until it actually receives funding from impact fees,which would be many years down the road. Council Member Craig asked if the park would be required to be a public park. Ms. Fairall explained that part of the development agreement required the developer to dedicate the detention basin to the Town. Regarding the Avra Valley Road Overlay project, Mr. Burruel explained this project involved overlaying the micromill conducted to address a pressing safety concern. Deputy Town Manager Erik Montague explained that now that the safety issue was addressed, this project would improve the quality of the stretch of road that was micromilled. Mayor Honea asked whether revenues from tipping fees collected from the landfill could be used to help fund this project. Mr. Montague said they could be used for any public purpose and confirmed they could help fund the project. Mayor Honea recommended using the tipping fees for this project. Discussion ensued regarding the amount of money currently in the tipping fee fund, the timing and structure of the transaction to pay for the project, and the need to prevent unnecessary delay. Mr. Rozema said Finance Director Yiannis Kalaitzidis would do some research and get back with Council. 4 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Vice Mayor Post expressed concern that the Town was allowing contractors to do a bad job on the road only to have to redo it with Town money. Mr. Burruel said Ms.Fairall informed him that it came down to whether the Town could prove who or what caused the slickness of that stretch of Avra Valley road and that the Town would probably spend more time and money figuring out who did what than if it went ahead and fixed it. Regarding the Marana Gateway Monument Signage project, Council Member Ziegler commented that she would like to see consistent branding across the Town with regard to monumentation. She also commented that the tiled monument off of Interstate 10 coming into Marana from Phoenix was good for its time, but that the Town needed updated monuments. Council Member Comerford suggested the Town's monument signs incorporate the ability to advertise Town events and other information. Mr. Rozema said one of the challenges is that many of the interchanges will be changing soon. Council Member Comerford said it was a good time to discuss monuments now so they are all consistent. Regarding the Water Reclamation Facility Phase 2 Expansion project, Dr. Luo explained this project needed to be prioritized because the Town is running out of assigned (but not actual) capacity, and that upgrades to the facility were required to provide more assigned capacity to serve future development. Mayor Honea emphasized the Town is not out of actual capacity and explained the concept is similar to water credits.He said he anticipates high costs for the water/wastewater projects. Council Member Craig commented that developers would need to wait until the projects can be paid for. [Council Member Officer left the meeting at 5:31 PM.] Mr. Rozema provided concluding comments, and said this day was meant to be an introduction. He then highlighted the topics to be covered over the next two days. Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Motion passed, 6-0. Meetir adjourned at 5:34 PM until the morning of Tuesday, March 14, 2023. Dinner- Council and Staff on their own 5 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Tuesday, March 14, 2023 7:30AM- Breakfast at Hotel 8:30AM Mayor Honea reconvened the meeting at 8:30 AM and led meeting attendees in the pledge of allegiance.He then took chairman's privilege and provided an update on SB 1117 (related to zoning),which failed in the Arizona Senate but could return as a striker bill. Mayor Honea directed the Town Clerk to call the roll. All Council Members were present, constituting a quorum. Mr. Rozema provided a brief overview of the day's topics, which centered around sustainable growth. 8:30AM- Funding Growth: Discussion of revenue streams available for infrastructure; 12:00PM impact fees - their purpose and challenges; timing challenges related to funding; and related topics Presentation by: Yiannis Kalaitzidis &Jane Fairall Mr. Kalaitzidis first addressed the tipping fees question posed the day before and said the Town would likely have approximately $800,000.00 in available funding. He then presented on this item. A copy of the presentation slides is on file with the Town Clerk's Office. Mr. Kalaitzidis said the Town is one of the fastest growing municipalities in Arizona and that it is well positioned. He posed the following question about the Town's growth philosophy: does the Town want aggressive growth or controlled/sustainable growth? He outlined the issues as follows: o Aggressive Growth: • Issue debt to do projects • Less money to pay as you go projects • General fund exposure for shortfalls • Operational issues • Difficult decisions in the future o Controlled/Sustainable Growth 6 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 • Prioritize growth projects and areas • Some growth projects deferred • Fewer favorable developer agreements • Fewer developments • Stop being the bank for developers Mr. Kalaitzidis outlined the available and potential sources of funding for the Town, financing challenges, the Town's history of financing successful projects, and the pros and cons of debt. Mr. Kalaitzidis and Town staff answered clarifying questions during the presentation. Please see the presentation slides for more detailed information. A summary of Council's discussion regarding this topic is as follows: Regarding community facilities districts (CFDs), Council Member Ziegler said it can be confusing to inform residents that the Town does not have a property tax, except for in certain areas where a CFD is established. Mayor Honea agreed that technically the Town does not have a property tax,but kind of does only in specific areas where the Town has CFDs established. Council Member Kai explained the history of early Town property taxes to fund operations. Council Member Comerford said the Town could get rid of CFDs as an option because they primarily benefit developers rather than Marana homeowners. She said the original reasons for CFDs no longer exist. Council Member Ziegler said CFDs were utilized to incentivize developers to come to Marana in the past and asked whether the Town needed CFDs anymore. Mayor Honea recommended CFDs should not be taken off the table, but that the Town should be cautious going forward regarding when it creates a CFD. He said that,while he is not in favor of eliminating them completely,the Town can be more assertive in ensuring any new CFD benefits the Town and not just the developer. Council Member Officer agreed,and said that when developers come to the Town asking for one, the Town should have an idea of what it is going to ask of them. Regarding RICO money, Council Member Ziegler asked whether funding from the seizure of contraband could be utilized more as a funding source. Mr. Rozema explained that the contraband usually sits for years as evidence before funds come to the police. Council Member Ziegler commented on the infrastructure bill and asked if the Town was getting any funding from it.Mr.Rozema said that funding is distributed through grants,and the Town is looking for opportunities to apply and has applied for an approximately$5 million grant. Mr. Rozema complimented the Town's new 7 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 grant manager. Council Member Ziegler said there is a lot of money out there that could be collected. Regarding the Town's debt-per-capita ratio, Council Member Zigler said it was good to see a reduction in the ratio from ten years ago. Mr. Rozema said the residents of the Town are willing to pay for a higher standard of service and that the ratio would continue to decrease as Marana's population grows. Mayor Honea said that while the Town has a higher debt-per-capita ratio than its neighboring jurisdictions, its residents also have a higher average income. Council Member Craig asked if it was advisable for a municipality to have a certain amount of debt on its books, and whether other jurisdictions were wrong to have lower debt-per-capita rations. Mr. Kalaitzidis said it depends on the needs of each municipality. Mr. Rozema said Tucson and Oro Valley, for example, are mostly built out and do not need a lot of new infrastructure, which is more costly 1 than maintaining existing infrastructure. He highlighted the need for the Town to determine what its mindset will be regarding growth,noting that it was cheaper to build next to existing infrastructure than to extend it really far out for development. Regarding the Town's growth philosophy, Council Member Ziegler commented that the desire has always been to have sustainable growth, but that the Town has been more aggressive because growth was current. She said some residents are nervous the Town is getting too aggressive. She said she understands the philosophy that if a municipality is not growing, it is dying, but she expressed concern about the aggressive rate of growth recently. She recommended being more selective and asked how the Town could say no to development. Ms. Fairall explained that, generally,if a development meets the Town's zoning requirements, it can develop, but that the Council has discretion when property is rezoned or during annexation proceedings. Mayor Honea agreed that the Town is big enough now that it can be more selective. Council Member Kai commented that the Town should be more aggressive in its commercial growth,because that is where the money is and it will benefit the Town in the long term. Council Member Comerford said the Town does not even need to be aggressive in commercial growth because commercial development is coming to the Town on its own now. Council Member Ziegler said it is good for the Town to have another basket of eggs (commercial development) when housing development is slow and Mayor Honea said commercial projects are and will be paying impact fees and that the Town will make up a lot of debt service from commercial development. 8 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Council Member Ziegler said that while she previously liked the idea of the Town paying for certain infrastructure to attract development, she is now in favor of developers paying for their own development. Vice Mayor Post said that going forward,the Town needed to find a way to ensure net-zero communities, in which, over time, the development and maintenance of communities would cost the Town zero dollars - such as by coming up with calculations addressing how much the developer, the Town, and the homeowner are paying toward infrastructure and Town services. He also recommended the Town require all new development to have private, not public, streets to save the Town money on road maintenance. Council Member Craig said it was good for the Town to grow from the inside out and that the Town should consider recovering more of its water that is currently not recovered through the Town's sewer system. She also commented that if the Town grows from the center out, it should not be growing and extending water infrastructure along Tangerine Road to the east of Interstate 10. Mayor Honea said redundancy was needed in the Town's water system. Vice Mayor Post recommended the Town structure some of its development agreement terms differently to discourage developers from sitting on a project,and recommended as an example that developers be required to pay a percentage of a project's cost rather than a fixed amount. Council Member Ziegler recommended that development agreements include sunset clauses, and asked if the Town could update its existing development agreements. Ms. Fairall said the Town could not do so unilaterally, but that the Town could try and renegotiate them when developers request amendments. Council Member Comerford said sunset clauses would prevent problems that can occur as times change and said that the property could revert back to its original zoning if a developer delays moving on a project after a number of years. Vice Mayor Post said he was not in favor of sunsetting zoning, but instead to have sunset clauses in development agreements that would allow for the renegotiation of the agreement. Council Members Comerford and Ziegler agreed. Ms. Fairall said the Town could not alter zoning entitlements unilaterally without running into Proposition 207 issues. Vice Mayor Post expressed concerns with the practice of allowing specific plans, and referenced the Amazon facility as an example. Council Member Craig commented that centralizing high-density restaurants, retail, and commercial uses in mixed use zoning should be encouraged, and asked 9 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 what we need to do to change zoning laws to allow for more mixed use. Development Services Director Jason Angell and Ms. Fairall said that mixed-use zoning is currently allowed in Marana's downtown area. Mayor Honea recessed the meeting for an approximately ten-minute break around 10:25 AM and then reconvened the meeting. Ms. Fairall presented on the impact fee portion of this item. A copy of the presentation slides is on file with the Town Clerk's Office. Ms. Fairall discussed the purpose of impact fees, the relevant statute and its 2011 changes implemented in 2014, the recent Arizona Supreme Court case in the ongoing Southern Arizona Home Builders Association (SAHBA) litigation, the challenges associated with impact fees, what the Town could do if it didn't utilize impact fees, and the pros and cons of such an approach. Ms. Fairall and other Town staff answered clarifying questions during the presentation. For further information, please see the presentation slides. A summary of Council's discussion regarding this topic is as follows: Vice Mayor Post asked if a negotiated development agreement could get around certain statutory impact fee requirements, and Ms. Fairall said it could not. However, she said the Town could decide what to put in the IIP, and said that is where the decision point is for the Council. Mr. Rozema said the risk on the other end (if a project is not in the IIP) is that the Town becomes reliant on developers to pay for certain infrastructure and that often developers do not pay for it or take a long time to do so. Vice Mayor Post recommended that the Town review its impact fees on a more regular basis, and Council Member Ziegler agreed. Vice Mayor Post asked if the Town could choose which areas are subject to impact fees and which are not, and Ms. Fairall said the Town is already doing that. Mayor Honea expressed his displeasure at being sued over impact fees and commented that perhaps the Town is not charging enough in impact fees. He said the Town should utilize more impact fees that the Town is entitled to utilize. He also expressed concern that the Town would be sued more over impact fees. Ms.Fairall explained the SAHBA lawsuit involved a unique issue due to the nature of the wastewater treatment plant benefiting both new and existing development, and that other impact fees do not involve the same issue. She said the Town would also be taking the Supreme Court's recent decision into account for future impact 10 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 fee calculations and said she feels very comfortable with the impact fees recently calculated. Vice Mayor Post asked why the Town couldn't have just one impact fee zone for roads like park impact fees. He said this would allow the Town to have the flexibility to move funds from transportation impact fees around where needed. Mr.Montague explained that it would be ideal for the Town,but SAHBA has taken the position that roads should be in different zones because people should not have to pay for roads they never drive on. Ms. Fairall agreed. Council Member Craig asked what happened when the Town received money from outside of its impact fee program that impacts a project listed within the IIP. Mr. Montague explained that if that happens during the impact fee review process period,the Town can update the impact fee calculations prior to adoption and,if it does not happen during the impact fee review period,the Town can amend the IIP. Ms. Fairall said that is part of the challenge with impact fees - it is difficult to incorporate possible outside factors and unknowns into the calculations. Mayor Honea asked if impact fees could be used for items other than infrastructure, and specifically asked if they could be used for police-related funding. Ms. Fairall said impact fees could be used to fund police equipment. Council Members, including Vice Mayor Post, Mayor Honea, and Council Member Ziegler, expressed support for looking into assessing police-related impact fees. Mr. Montague said the Town has looked into general government impact fees in the past, but didn't pursue it at the time. He said Town staff could take a look at utilizing impact fees for police. Mr. Rozema said that Tucson has impact fees dedicated toward the police and that Sahuarita does not utilize impact fees at all but instead relies on a half-cent sales tax. He also mentioned Marana's impact fees are the highest in southern Arizona, but that Gilbert and Queen Creek - two quickly growing communities - also have high impact fees and serve as a good comparison for the Town. He further explained the Town's impact fees were high because of the need for new infrastructure required to support new development. Ms. Fairall said the impact fee discussion has a lot to do with the Town's own self- determination - how, when, and where the Town grows. She said it depends on how the Town's elected official wants to control the Town's growth. Vice Mayor Post commented that the Town does not need to grow-that it is financially solvent and it could stop growing now. He said the Town wants to grow, and to ensure success in that regard, the Town needs to assess appropriate impact fees. 11 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Vice Mayor Post said that as a long-time resident of the Town,growth is great,but he and other current residents do not want to pay for it. He commented that if developers want to build here, that is fine, but they need to pay for it. Council Member Ziegler commented that the Town is now at a point where it can more fully implement a development-pays-for-itself policy. Council Member Craig commented she now realizes the critical nature of the decision-making process involving which projects should be added into an IIP. Mayor Honea recessed the meeting for lunch at 11:49 AM. 12:00PM- Lunch at Hotel 1:00PM Mayor Honea reconvened the meeting at 12:36 PM. All Council Members were present, constituting a quorum. Mr. Rozema provided a brief overview of the next portion of the meeting and commented that the topics thus far have been building on each other and that the building would continue this afternoon. He thanked Town staff for all of the work put into the next presentations. 1:00PM- Planning for Sustainable Growth: How do we want to grow(invest)in the future? 5:00PM Infrastructure planning for growth; service costs and how services are paid; infrastructure maintenance and replacement; and related topics Presentation by: Erik Montague &Jason Angell Mr. Angell presented first on this item. A copy of the presentation slides is on file with the Town Clerk's Office. Mr.Angell discussed the Town's Strategic Plan 5 and general plan related to the Town's growth, highlighted how the Town is not small anymore and needs to consider the maintenance of its assets, discussed the costs of development, demonstrated how all areas in the Town (and in the region) are either built out or spoken for and that regional development is now focused on north Marana west of Interstate 10, and discussed how these facts put the Town in the driver's seat related to development. Economic Development Director Curt Woody also presented on this item and outlined opportunities for commercial and industrial development, along with related water and wastewater infrastructure challenges, east of Interstate 10 just 12 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 south of Tangerine Road, including opportunities and challenges involving State Trust Land. During the presentations, Town staff answered clarifying questions. Please see the presentation slides, which include maps and other detailed information. Council's discussion on this topic is summarized as follows: Mayor Honea commented that companies in Coolidge and Casa Grande are expanding and that many of their new employees may reside in Marana because of where the Town is positioned in relation to them. Council Member Kai said Marana is ideally located for commercial movement. Vice Mayor Post commented that if the State wants development on State Trust Land, the State should bring its own water. Mr. Montague presented next and provided an overview on a draft formula designed to maintain the Town's assets. He analogized the relationship between the Town and individual developments to parent company and its subsidiaries.He said sustainability is achieved when revenues generated from development (through sales tax and other methods) meet or exceed Town-wide costs (or deficits),and he used the Gladden Farms Phase 1 development to show an example of how the draft formula works. Mr. Montague highlighted that if the Town refined and utilized the formula as an assessment tool, it would be able to determine whether a specific development pencils for the Town in a similar way that developers utilize formulas to determine if development pencils for them. He said the tool would also serve as a temperature check and would help facilitate necessary conversations. During the presentation, Mr. Montague and other Town staff answered clarifying questions. A copy of the presentation slides is on file with the Town Clerk's Office. Please see the slides for more detailed information. A summary of Council's discussion on this topic is as follows: Council Member Craig and Vice Mayor Post expressed the tool illustrates that denser communities cost less to operate. Mayor Honea said that fact must be weighed against quality-of-life concerns. Mr. Rozema emphasized that the evaluation tool discussed by Mr. Montague would give the Town the ability to evaluate any development coming forward and would allow the Town to determine if the proposed development makes sense for the Town. 13 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Mr. Angell, in answer to a question from Council Member Ziegler, provided as an example that if public streets did not pencil for a development after evaluating the development with the tool,then the Town would not accept the streets as public streets. Mr. Kalaitzidis said the tool could also give the Town a way to evaluate incorporating empty space between developments where infrastructure would need to be put into place for development to occur. Vice Mayor Post asked if there was a way to require home owners' associations to contribute maintenance money to the Town through a development agreement. Ms. Fairall said that may be a possibility. Vice Mayor Post said much of the Town has already been developed, and that some of these measures would have been good to put into play ten years ago. He asked if there was any money in RTA for maintenance. Mr.Rozema said there was very little dedicated for that purpose and that there may not be much available because of the many other projects going on. Vice Mayor Post commented that the formula presented was very eye-opening. Discussion ensued regarding the Villages of Tortolita development that highlighted the need for the Town to structure transactions with developers in such a way so as to not let one developer hold infrastructure installation hostage. Mayor Honea commented that without the Barnett Channel, many of the north Marana projects may not go forward. Mr. Montague said Town staff is aware of the problem,but the main roadblock is the cost of the Barnett Channel project. Mr. Rozema indicated some developers are thinking about coming together with the Town to construct the Barnett Channel instead of investing in their own drainage infrastructure. He said Pima County may be willing to assist as well if it sees the Town is serious and comes up with enough funds. Mayor Honea recessed the meeting for a break at 2:19 PM and reconvened the meeting at 2:34 PM. Council Member Craig suggested that the Town should think seriously about development requiring infrastructure to be extended beyond the Town's core areas. Mr. Rozema said the Town will have the ability to take a stronger stance on this going forward. -If time permits, Hot Topics: - Public Art Policy/Monumentation 14 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Mr. Angell presented on this item and recommended that developers contribute to a public art fund so the Town can have control over the style, quality, and placement of public art in the Town. A copy of the presentation slides is on file with the Town Clerk's Office. For tables, images, and more detailed information, please see the presentation slides. Mr. Angell and other Town staff answered clarifying questions during the presentation. A brief summary of Council's discussion on this topic is as follows: Vice Mayor Post questioned why the Town should exclude residential development from the requirements in the draft policy, and Mr. Angell said staff was looking for feedback on the specific policy requirements and that the draft policy was open to change. He and Mr. Rozema said a balance would also need to be struck on whether there should be a cap and, if so, on what the cap should be. Vice Mayor Post asked if the RTA could abide by the policy requirements if placed in the Town Code. Mayor Honea said the RTA has art within their budget,but that the requirement would likely be apportioned to its partners, including to Marana. Vice Mayor Post expressed concern at how large the public art contribution would need to be as a percentage for the Tangerine interchange. Council Member Craig was in support of a 1% cap. Mr. Rozema said Town staff would prepare some numbers and present the Council with options to consider during a study session. Vice Mayor Post said he was not fond of spending public money on art,but that if the Town keeps the art at the same level of quality as displayed in recent projects (reindeer project, Spirit of Marana, birds project etc.), that he is in favor of it. Council Member Ziegler expressed that she prefers the design style of the recent art projects. Sjhe thinks it will give the Town a cohesive feel and thinks it is great that the art is made in conjunction with the Marana School District. Mayor Honea discussed older art projects in the Town and expressed the need to maintain them better. Council Members Comerford and Ziegler expressed concern regarding who would be appointed to help select what art is placed in the Town, and Council Member Ziegler said the art review committee should not be too large. Mayor Honea asked if the Town Council would have final selection authority. Mr. Angell said the Council would. Council Members Craig and Ziegler expressed their support for the policy, and Council Member Ziegler requested one of the art project involve a turtle, possibly in the El Rio Preserve. 15 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Ms. Caidedo presented on monumentation options, showed images of the Ina Road monument, the Twin Peaks Road monument, and a rendering of a hybrid monument, and asked for Council Members' preferences and feedback. A copy of the presentation slides is on file with the Town Clerk's Office. Please see the slides for visuals and other information. Ms. Caicedo and other Town staff answered clarifying questions during the presentation. A summary of Council's discussion on this topic is as follows: Council Member Craig was in favor of the Ina Road monument. Vice Mayor Post liked the Twin Peaks Road option and the hybrid option. At one point, six Council Members raised their hand in support of the Twin Peaks Road option when asked which of the three they preferred, but when the hybrid option was shown during this time, Council Member Ziegler indicated she did not know there was a third option to vote on and said she liked the hybrid option. Council Member Comerford indicated she liked aspects of the hybrid option as well. Council Members expressed displeasure at the cost of the options, which were around $150,000.00 for the Ina Road option and $200,000.00 for the hybrid option. - Marana Citizens' Forum reboot Mr.Rozema presented on this topic and counseled against adopting an alternative, open-house style of the new Forum proposed by a resident at a the Town Council's February 21, 2023 regular meeting. He said that style of forum has not worked for the Town in the past. He recommended the original plan proposed by Ms.Caicedo at the February 21st meeting, and answered clarifying questions during his presentation. A summary of Council's discussion on this topic is as follows: Mayor Honea and Council Member Craig agreed with Mr. Rozema and supported the plan for the citizen's forum he and Ms. Caicedo proposed. Vice Mayor Post said that as long as the new Forum is given meaningful work do, he is in favor of it. Regarding appointment duration, Vice Mayor Post and Council Member Craig liked the idea of three-year appointments. Vice Mayor Post expressed a desire for the option to end an appointment before that time if it does not work out and for the option to rotate appointees based on the topic before the Forum. Council Members Ziegler and Comerford agreed with Vice Mayor Post regarding topic- related appointments. Mr. Rozema said they would take that into account and try and incorporate it into the Forum plan. Ms. Fairall said provisions could be added allowing the Council to remove members, similar to other boards. 16 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Regarding the number of appointments, Council Members Craig and Ziegler said there would be difficulty in reaching a consensus with bigger groups, and requested just one appointment per Council Member instead of two. Council Member Comerford disagreed with that option. Mr.Rozema clarified that the new iteration of the Forum would not need to reach a consensus, but only discuss projects so that its members' feedback on projects could be relayed to the Council. Council Members Officer and Comerford expressed a desire to see a consistent date on which Forum members would meet. Mr. Rozema said members could be given plenty of advance notice (around two months or so) regarding upcoming meetings. Council Member Comerford and Vice Mayor Post recommended Mr. Rozema do a podcast once the new Forum is ready. Council Member Officer asked which Town department would run the new Forum,and Mr. Rozema said it is now being run by the Town Managers Office. -Employee Benefits Mr. Rozema presented on this topic and answered clarifying questions during the presentation. He informed Council Members that the Town was at the bottom regarding leave accrual when compared with other jurisdictions in Pima County. He recommended the Town adopt the following: [Note that the numbered items below were acquired from the Town Manager's Office after the meeting concluded. These items include additional information to what was presented at the meeting for the purpose of completeness.] Max Accrual 1. Current: 1. 0-5 years of service - 180 max accrued vacation hours 2. 5-10 years of service - 200 max accrued vacation hours 3. 10+ years of service - 240 max accrued vacation hours 2. Proposed: 1. 0-3 years of service - 200 max accrued vacation hours 2. 3-5 years of service - 240 max accrued vacation hours 3. 5-7 years of service - 264 max accrued vacation hours 4. 7-10 years of service - 288 max accrued vacation hours 5. 10-15 years of service -304 max accrued vacation hours 6. 15+ years of service -320 max accrued vacation hours 17 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Vacation Accrual 3. Current: 1. 0-5 years of service - 80 hours per year 2. 5-10 years of service - 120 ours per year 3. 10+ years of service - 160 hours per year 4. Proposed: 1. 0-3 years of service - 80 hours per year 2. 3-5 years of service - 120 hours per year 3. 5-7 years of service - 144 hours per year 4. 7-10 years of service - 168 hours per year 5. 10-15 years of service - 184 hours per year 6. 15+ years of service - 200 hours per year Mr. Rozema explained that the proposed changes would put Marana somewhere in the middle of where other jurisdictions are currently at. He said the changes do come with a cost, and Mr. Kalaitzidis explained how the cost was quantified and accounted for. Mr. Rozema said the next proposed change involved sick leave payout. Please see the table below for details: (Note that this table was acquired from the Town Manager's Office after the meeting concluded. It includes additional information to what was presented at the meeting for the purpose of completeness.] Sick Leave Payout Separation/Retirement Type Hours of Accrued Payout MTO/Sick Leave Official Retirement 250 -499 25% Regardless of Years of Service Separation/Retirement 500 - 749 25% 15+ Years of Service 750 - 999 35% 1,000 - 1,500 50% Mr. Rozema said the Town was the only jurisdiction in Pima County that was not doing this and that this proposed change would put the Town somewhere in the middle of the other jurisdictions. He explained that the proposed change incentivizes employees to accrue sick leave. 18 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Mr. Rozema said the last recommendation involved recognizing Juneteenth as a Town-recognized holiday. Council Members, including Council Member Comerford, Council Member Ziegler, Council Member Craig, and Mayor Honea, expressed support for the accrual and sick leave payout proposals. Council Member Ziegler said she would not support the Juneteenth holiday, and other Council Members had questions about it. Mr. Rozema invited them to think about it and provide him feedback. -Potential Environmental Challenges to Development [Time did not permit discussion of this Hot Topic during the retreat.] Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Council Member Comerford seconded the motion. Motion passed, 7-0. Meeting adjourned at 4:37 PM until the morning of Wednesday,March 15, 2023. Dinner -Council and Staff on their own Wednesday, March 15, 2023 7:30AM - Breakfast at Hotel 8:30AM Mayor Honea reconvened the meeting and called the meeting to order at 8:33 AM. He directed the Town Clerk to call the roll. All Council Members were present, constituting a quorum. Mayor Honea led meeting attendees in the pledge of allegiance. As a housekeeping item, he asked those in attendance to consider where the Council retreat should be held next year. Mr. Rozema provided a brief introduction of the day's topics. 8:30AM - Transportation Planning and Projects: Discussion of timing and costs of major 12:00PM transportation projects,including improvements to Marana Road,Tangerine Road, and Cortaro Road Traffic Interchanges; discussion of possible Moore Road Traffic Interchange; transportation master plan update Presentation by: Fausto Burruel 19 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Mr. Burruel presented on the pending Marana Transportation Master Plan, major transportation CIP project updates, and Interstate 10 traffic interchange projects. He and other Town staff answered clarifying questions during the presentation. A copy of the presentation slides is on file with the Town Clerk's Office. Please see the presentation slides for visuals and more information. A summary of Council's discussion on this topic is as follows: Regarding the Tangerine Phase 2A project, Council Member Comerford recommended getting senators involved if ADOT keeps dragging its feet regarding the issues at the Tangerine intershange. Mr. Rozema said Town staff has spoken with high-ranking staff at ADOT, and they informed the Town they believe the Tangerine intersection is safe and therefore the project is not a priority for ADOT. Regarding the Twin Peaks Road/Rattlesnake Pass project, Council Member Craig asked about the wildlife bridge. Mr.Burruel said there is not funding for the bridge currently but that it could be constructed when funding becomes available. Council Member Ziegler asked why there was not funding available for the wildlife crossing and said there was such funding for the Lazy K project in the past. Ms. Flood said wildlife funding has been included for certain projects, but when the RTA ran out of money,the categorical funds were cut,including environmental money.She said the Town never intended to pay for the bridge with its own funds. Mr. Rozema said such funding would be in the millions of dollars. Council Member Craig suggested the Town at least pay for the design. Regarding the Tangerine Farms Extension project, Vice Mayor Post asked about the future of Barnett Road. Mr. Rozema said the hope is to establish the Barnett Channel to take north Marana out of the flood plain. He said one concept involved installing a linear park along the channel and removing Barnett Road,which could not take place until Clark Farms Boulevard is completed. The other concept would leave Barnett Road in place and not have a linear park. He said Pima County is not very interested in participating in a drainage project if it does not involve a park that ties into the Huckleberry Loop. Council Member Ziegler said she would like more information before a decision is made, and Mr. Rozema agreed. Also regarding the Tangerine Farms Extension project, Council Member Ziegler asked when the downtown stretch of road would be completed. Mr. Rozema said Town staff had a meeting scheduled with an involved property owner next week. Vice Mayor Post suggested that the downtown area would take off once the Marana traffic interchange was constructed. 20 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Regarding the Cortaro Road Traffic Interchange project, Vice Mayor Post asked how much the Town needed to contribute to the$200 million project and if the cost was so high due to right-of-way acquisitions. Mr. Burruel said the Town possibly could be on the hook for around $10 million, but that it was not certain yet. Mr. Rozema said the there would be a significant amount of taking for this project. Mayor Honea said he met with Tucson's mayor last week and that it appears the parties involved in RTA Next are getting close to being on the same page. Mr. Rozema said if RTA Next does not happen,the Town may need to look at imposing a half-cent sales tax for transportation projects. Vice Mayor Post said the Cortaro project alone would consume all such tax revenue for years to come. Council Member Ziegler said she does not seeing the Town funding the project if it came down to it, and she expressed her concern for the businesses in that area if current conditions persist. Mayor Honea recessed the meeting for a break at 10:06 AM and reconvened the meeting at 10:24 AM. Regarding the Tangerine Road/Interstate 10 Traffic Interchange project, Council Member Kai asked about the timing for the presented improvements. Mr.Burruel said the initial improvements were scheduled to occur this calendar year and that the interim improvements would be around two years out. Regarding the Marana Road/Interstate 10 Traffic Interchange project, Mayor Honea asked if a roundabout was included in the project improvements, and Mr. Burruel said a roundabout was not included. Council Member Kai said it seemed like a roundabout was needed on the west side of the freeway. Mayor Honea said he was not sure how it would all be tied together without a roundabout. Mr. Burruel said a signalized intersection was being contemplated instead. Vice Mayor Post suggested the frontage roads needed to go. He also commented that the Marana interchange was at capacity now and will be much worse with any additional development in north Marana. He and Council Member Comerford expressed that development would be more likely to happen there if the interchange improvements were already in place. Regarding the possibility of a prioritized Moore Road/Interstate 10 Traffic Interchange project,Town staff emphasized that this project(which is estimated to cost around $60 million) would provide for an alternate route when the Marana and Tangerine interchanges are closed. Council Member Ziegler said she was not in favor of prioritizing the Moore Road interchange project.She said it likely would be the right decision if other interchanges were not as bad as they are. Mayor 21 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Honea expressed concern regarding the Moore Road interchange project's funding and its timing with RTA Next already wrapping up. Council Member Kai preferred to focus on the Marana Road interchange, but said it would be nice to have Moore Road as a backup. Vice Mayor Post discussed possibly putting the funding for Moore Road into the Marana Road interchange. Mayor Honea recessed the meeting for lunch at 11:38 AM. 12:00PM- Lunch at Hotel [Some brief follow-up discussion took place during the first part of lunch 1:00PM regarding RTA Next and the Moore Traffic Interchange.] 1:00PM - Mayor Honea reconvened the meeting at 12:19 PM. All Council Members were 3:00PM present, constituting a quorum. Mr. Rozema provided a brief introduction of the next topic. Water Resources: General water resources and Designation of Assured Water Supply (DAWS) update; water resources task force update and water acquisition opportunities; drought preparedness plan update; water conservation program update Presentation by:Jing Luo Dr. Luo presented on this item, along with representatives from WestWater Research. A copy of the presentation slides is on file with the Town Clerk's Office. Dr. Luo first provided an update on the Town's Water resources management and its current Designated Assured Water Supply (DAWS) Modification, which is designed to double the Town's DAWS and which is projected to be approved in July of 2023. Dr. Luo, along with Ms. Jessica Fox, Southwest Regional Director of WestWater Research, then provided an update related to the Water Resources Master Plan Task Force and recommended the Town seek the acquisition of long-term storage credits (LTSC), effluent rights, and that it monitor opportunities to purchase other supplies or take advantage of potential augmentation opportunities. Dr.Luo presented specific water acquisition opportunities consistent with the Task Force's recommended approach. She then provided an update regarding the Town's revision of its drought preparedness plan and its water conservation program. 22 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 WestWater Research representatives and Town staff answered clarifying questions during the presentations. For more detailed information, including tables, maps, and graphical information, please see the presentation slides associated with this topic. A summary of Council's discussion of this topic is as follows: Mayor Honea said that under state law, rental housing does not require the Town to use water credits to support it and that the Town should start factoring that into its calculations. He highlighted that a lot of new rental units are coming in. Vice Mayor Post and Mr. Angell clarified that if a property is platted, there must be an assured water supply and that Pinal County is getting around the requirement because they are not platting properties. Mayor Honea said the Town is different from Pinal County because the Town has enough physical water, but just doesn't have the credits it hopes to have. Council Member Kai said some jurisdictions are informing developers they need to bring their own water rather than relying on the municipality's DAWS. Mr. Rozema commented that this was a good discussion,but one that should take place another day after Town staff has had an opportunity to look into it. Dr. Luo commented that if the Town receives approval of its DAWS modification from the Arizona Department of Water Resources (ADWR), it will be in a much better position. If not, perhaps at that time the Town could consider other options. Regarding the projected increasing membership fee for the Town to be a member of the Central Arizona Groundwater Replenishment District (CAGRD), Vice Mayor Post asked how the Water Department plans on paying for it. Dr. Luo said the cost would be built into the Water Department's water rate study, which is scheduled to take place in the coming fiscal year. Council Member Craig asked what would happen if CAGRD ran out of water. Council Member Kai said CAGRD is fine storage-wise. Ms. Fox said jurisdictions cannot use CAGRD without having physical water available. She explained that CAGRD's role is to make jurisdictions whole through replenishment for water the jurisdictions are pumping out of the ground. Vice Mayor Post commented that was why the Town needed to go through the DAWS process even if it was a member of CAGRD because it needs to show it has physical water in the ground. Ms. Fox confirmed that is the case. She emphasized that CAGRD is not intended to be a water supply, but rather is used to replenish what a jurisdiction has already pumped. 23 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Regarding the specific water resource acquisition opportunities, and referring to the options depicted in the tables located on slide number 17 of her presentation, Dr. Luo requested feedback on how many LTSC's the Town should purchase. Vice Mayor Post suggested the Town purchase the highest (the third) option that would provide five years of reserve and cost between $9,600,000.00 and $10,800,000.00. He compared purchasing LTSC to buying cash and said the Town could pay itself back when it needed to. Mayor Honea said there may be entities the Town could purchase banked water resources from, and mentioned Tucson has banked 45 years of excess water. Mr. Rozema stated that Town staff did not need direction from Council immediately on how many LTSC to acquire and that Town staff would prepare some additional information to bring before the Council. Vice Mayor Post commented that the Town's water resource impact fee should accumulate a significant amount each year. Dr. Luo and Mr. Rozema stated the amount is tied to the water rate evaluation, which will be taking place in the upcoming fiscal year. Vice Mayor Post said he thinks it is time for the Town to use water rates to acquire water resources. Mayor Honea asked if the Town has looked at purchasing credits from Pima County. Dr. Luo said Town staff has expressed interest to the County, but the County said it wants to use the credits for development. Vice Mayor Post commented that the County's credits wouldn't make much of a difference to the Town. [Council Member Kai left the meeting at 2:20 PM.] Regarding the Town's water conservation program, and specifically regarding the proposed water-conservation-related rebate program, Council Member Craig asked if the Town required high-efficiency toilets for new development, and Vice Mayor Post commented that would be low-hanging fruit from a water conservation perspective and was in favor of such a requirement. Mayor Honea asked how the Town would police and enforce such a requirement. In response to the presentation on rainwater harvesting, Vice Mayor Post said it does not work well in certain areas. Council Member Officer said he has seen rain water harvesters be installed only to be uninstalled later. 24 Special Council Meeting/Retreat Summary Minutes March 13-15,2023 Mr. Rozema clarified that the question in the presentation was whether the Town should provide rebates for high efficiency toilets, tankless water heaters, and for installing rainwater harvesting systems. He emphasized that the focus was on saving water, not enforcing requirements. Vice Mayor Post said he was fine with the tankless water heater and the high- efficiency toilets, but would like to see how the rainwater harvesting system is set up before providing a$2,000.00 rebate for it. Council Member Craig liked all three rebate options. Dr. Luo requested feedback on how the Town should fund the water conservation program. Council Member Craig was against utilizing the general fund as an option. Council Member Craig, Council Member Comerford, and Vice Mayor Post were in favor of increasing the water conservation fee to $.017/1,000 gallons utilized and Vice Mayor Post and Council Member Craig would also like to see the Town pursue grant funding. Vice Mayor Post requested this be brought before Council for adoption. Mayor Honea asked for a motion to adjourn the meeting. Vice Mayor Post moved to adjourn the meeting. Mayor Honea seconded the motion. Motion passed, 6-0. Meeting adjourned at 3:03 PM. 3:00PM Depart for Return Travel-Council and Staff on their own CERTIFICATION I hereby certify that the forgoing are the true and correct minutes of the Marana Town Council Special Meeting/Retreat held on March 13 - 15, 2023. I further certify that a quorum was present. David L. Udall, Town Clerk LL61 C73HS 1Bv1S3 VNIltiVN / Ili" 4,, v4QCS;)67 P7f147A1Rffi!�s-. MARA,NA AZ ESTABLISHED 49 .0i 25 Special Council Meeting/Retreat Summary Minutes March 13-15,2023