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HomeMy WebLinkAbout02-14 to 2-16-2024 Special Council Retreat Meeting Summary Minutes MARANA AZ ESTABLISHED 1977 MARANA TOWN COUNCIL SPECIAL COUNCIL MEETING/RETREAT Crowne Plaza Resort, One North San Marcos Pl, Chandler, AZ 85225, Palomino Room February 14-16,2024 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.] Wednesday, Mayor Honea called the meeting to order at 3:04 PM and asked the Town February Clerk to call the roll. All Council Members were present, constituting a 14,2024 quorum. 3:00PM - Welcome to City of Chandler 3:30PM Guests:Mayor Kevin Hartke and City Manager Joshua Wright [Actual start time was 3:04 PM.] City of Chandler Mayor Kevin Hartke addressed the Marana Town Council and welcomed them to the City of Chandler. He provided summary of what makes Chandler unique, including how it how it attracts and retains job opportunities within the City. He warned the Council against allowing data centers within the Town limits, citing that they take up a lot of power and land, but provide no jobs. City Manager Joshua Wright said the data centers also generate noise issues. He said it was a tone problem rather than a volume Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 1 problem that affected some people but not others, and that they have been getting a lot of complaints. Mayor Hartke said one of the bills in the State Legislature would allow development by right, which would exacerbate the issue if passed. Mr. Wright welcomed the Council to Chander as well and said he knows many of the current Council Members and staff, as he worked for the Town 13 years ago. He said he was proud to start his career in Marana and said it is an amazing town doing great things. He then outlined the history and statistics related to the City of Chandler and said much of its development now consists of infill projects. He said downtown Chandler has been through a renaissance as a result of City leaders long-range planning efforts. He said development now is self-propelling. Mr. Wright explained how the City attracts and retains jobs in the City and how it manages its water resources and infrastructure for long-term planning. Mayor Hartke said that the City preemptively enacted an ordinance a few years ago stating that if anyone was able to develop property within the City limits by right that they were required to bring their own water. Mayor Honea asked how water recharge and reuse fit in Chandlers water planning. Mayor Hartke said that Chandler's water table was rising because of the amount of recharge the City was doing. He explained the City had an agreement with the Gila River Indian Community that allowed then to trade a gallon of recycled water for a gallon of Central Arizona Project(CAP) water, which insulated them from CAP cuts. He said they are also making toilet-to- tap plans, but that they are not there yet due to the high cost. He commented that Phoenix and Scottsdale plan on doing this on a limited basis sometime soon. Mr. Wright explained that data centers did allow for water to be recycled over and over again. He also explained that the City is undertaking efforts to bring recharged water across the Phoenix Valley physically back to the portion of the aquifer under Chandler. He said these endeavors move Chander's "paper water" so it is physically under their own feet. Vice Mayor Post asked if the City had a property tax. Mr. Wright said it had both a primary and secondary property tax and that businesses pay property tax in Chandler. Mayor Hartke said every municipality has its own recipe for where it gets its money from, and that chandler spread out a little tax over a lot of places so it did not need to charge a lot to a single sector. Discussion ensued between Vice Mayor Post and Mr. Wright concerning the differences between Pima County taxes and Chandler's. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 2 Council Member Ziegler asked if Chandler had an airport and said the Town has been trying to put its airport in the black. Mayor Hartke said Chandler also does not break even with its airport but said the value of the airport is that the surrounding land lends itself to businesses, such as manufacturing, that provide the City with an economic engine. Mr.Wright said the challenge with the Marana Regional Airport is its remote proximity to Interstate 10. 3:30PM - Progress update from direction given at 2023 Council Retreat/ 2024 Council 4:15PM Retreat overview Presentation by: Terry Rozema and Erik Montague [Actual start time was 3:47 PM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Marana Town Manager Terry Rozema provided a review of last year's Council retreat. Deputy Town Manager Erik Montague provided the Council with an update regarding completed action items since receiving feedback from the Council at last year's retreat, along with action items that are currently ongoing. Clarifying questions were asked and answered throughout the presentation. Please see the presentation slides for a list of completed and ongoing action items. Regarding the completed action item of meeting with State Land Commissioner Robyn Sahid, Mr. Rozema said it was clear that the State Land Department is interested in Marana and that they have some ideas for staying away from the Preserve, washes, etc. Council Member Ziegler asked if renegotiating the lease with the State Land Department was discussed, and Mr. Rozema said those discussions have not taken place yet and that the discussions are preliminary at this point. Mayor Honea said this was the first time a State Land Commissioner has come to Marana and wanted to meet with Town representatives and was encouraged that the Department was making the effort. Council Member Ziegler expressed concern and said it might be worth discussing whether the Town should be engaging with State Land at all. Mr. Rozema highlighted that the parties are in the very early stages of negotiations. Regarding the ongoing action item of Sunset Clauses and Development Agreements, Council Member Ziegler asked if the Town could add escalator clauses in development agreements or renegotiate them. Town Attorney Jane Fairall said that if developers come to the Town seeking a change to their Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 3 development agreement,then the Town has more negotiation leverage to add clauses in. She said the Town will take it into consideration going forward. Mr. Rozema said language could also be added to require certain amenities rather than dollar amounts, which change over time. Ms. Fairall said Town staff has already had conversations like this with developers. Council Member Ziegler expressed frustration that the Town now needed to pull amenities out of the Saguaro Bloom park. Mr. Rozema said the Town has worked through a lot of the issues and will get the vast majority of the amenities in phase one or phase two of the park, which will quickly follow phase one. Council Member Craig asked if the Town had sunset clauses for water in development agreements. Ms. Fairall and Mr. Montague explained that water is obligated to development when a final plat is signed, and that the obligation cannot be automatically rescinded. Mr. Rozema then outlined the focus for this year's Council retreat. Please see the presentation slides and agenda/minutes headings for details. 4:15PM- Employee Retention: Discussion regarding possible employee benefits and 5:00PM compensation adjustments for FY 2025 Presentation by: Terry Rozema [Actual start time was 4:14 PM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Mr. Rozema said the Town has been evaluating employee retention options in several areas and showed several tables comparing benefits on a regional level associated with leave, compensation, and insurance. Additional slides were shown calculating hypothetical changes to parental leave, shift pay, on- call pay, and comp leave. Clarifying questions were asked and answered throughout the presentation. For details regarding the comparison tables and calculations, please see the presentation slides. Council Member Ziegler said the Town did a compensation study a couple of years ago. Mr. Rozema said that because the Town was the first in the region to complete its compensation study, the surrounding jurisdictions used ours as a comparison to elevate their numbers. He also said there are positions within the organization that the Town is having extreme difficulty Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 4 in filling and that adjustments are needed in a few areas to help the Town be competitive. Mr. Rozema explained that there are 54 new position requests. Vice Mayor Post and Council Member Comerford expressed surprise at that number, and Vice Mayor Post asked how many of the positions were ones that were declined the previous year and now needed again. Mr. Montague said there are no intentional vacancies that are coming back. Mr. Rozema said the Town was in a good financial position with the money saved from last year. He said the Town won't get close to authorizing all 54 positions, but it will be able to authorize some of them.He said other things needed to be considered as well, such as the retention of current employees. Council Member Comerford recommended closing the Town from Christmas to New Years for all except essential employees and requested a cost-benefit analysis. She said there are not a lot of customers coming through the door during that time, and that if the Town is looking for incentives to attract and retain people, that week off (as holiday time) would set Marana apart. Mr. Rozema said there are cost, appearance, and public expectation perspectives that need to be considered, but that a cost-benefit analysis could be done. Mayor Honea adjourned the meeting for the day at 4:39 PM. Thursday, February 15,2024 7:30AM- Breakfast at Hotel 8:15AM Mayor Honea called the meeting to order at 8:15 AM and asked the Town Clerk to call the roll. All Council Members were present, constituting a quorum. Mayor Honea then led the pledge of allegiance. 8:15AM - North Marana Development and Entitlements: Discussion regarding the 9:15AM Town's vision for North Marana By:Jason Angell [Actual start time was 8:17 AM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 5 Development Services Director Jason Angell presented on development in North Marana. During his presentation, several maps were shown. Please see the presentation slides for various depictions of North Marana. Clarifying questions were asked and answered during his presentation. Mr. Angell said that the Town has approved many developments in North Marana and has to date only built out a fraction of those units. He then provided updates on several specific developments and highlighted where they were on the maps. Mr. Angell explained that while the development sounds like a lot in North Marana,there are only two or three subdivision projects that are ready to kick off.He said that if other subdivisions don't get going soon that fiscal-year 2026 will be a difficult year for single-family residence permit numbers. He also said the Monarch development is in the best position to proceed, but that there are some infrastructure evaluations that need to take place. Vice Mayor Post expressed surprise that there were only two subdivision projects ready to go. Council Member Comerford said the developers need to put in the infrastructure. Mr. Angell agreed, and Mr. Rozema said that the Monarch development does not have as much financial capital some other developers and cannot put in all of the infrastructure at once. Because the Town does not want it patched in, it is working with Monarch to come up with a phase-in plan. Mr. Angell explained that the groups listed on the map on slide 5 of the presentation slides have discussed possibly wanting industrial development on their properties and posed the question of what kind of industrial uses the Town would want to allow, since industrial can be very broad. Vice Mayor Post commented that he thought the Town was developing in a way that had more commercial to the south and residential in the north, but that it appeared to be flip-flopping. He said this is a good conversation for the Town to have. Council Member Ziegler said the Town needs to start saying no to projects. She said the Town is in a position where it can better select what types of development it wants to attract.She said the Town needs to consider first and foremost what the residents of Marana want. Vice Mayor Post said that putting in data centers, for example, could bring a lot of money into the Town over a ten-year period that could help shape the Special Council Meeting/Retreat Summary Minutes February 14-16,2024 6 Town in a way the Town desires. He said the question in his mind was where to put that kind of development, and to first investigate and determine when and whether to say no to a project or to explore where to put it. Mr. Angell said there are not many property owners in North Marana that own large acreage anymore, which is attractive to developers because it is easier to deal with one property owner instead of multiple owners of smaller properties. Mr. Angell then showed a proposed new concept for the Villages of Tortolita development on slide 6 of the presentation slides and explained that the developer would like to develop 950 acres of the property as industrial. Ms. Fairall said the developer does not have the rezoning for it yet but does own the property. Council Member Craig and Council Member Ziegler asked why industrial was suddenly desired in so many places in the Town. Mr. Rozema said it probably is not something new, but is something new to Marana. Mr. Angell said once the Town crossed the 50,000 population threshold, it was on the radar for more development. Council Member Ziegler commented that she liked the idea of Chandlers bring-your-own-water ordinance discussed the previous day. Mr. Angell said the big question in light of today's discussion is what the Council would like to see in North Marana. Mr. Rozema highlighted that the upcoming presentation relating to having a vibrant downtown in North Marana. Mayor Honea commented that the Barnett Channel was essential for development on the east side of the freeway, and Mr. Angell agreed that drainage improvements would be a major factor for some of the planned development in North Marana to turn on.He said drainage was on the agenda for discussion in the afternoon. Council Member Ziegler said that the Town has been and will continue to be a growth community, but she would like to see projects like Downtown Marana to be prioritized and to see infill developed before more expansion into outlying areas.She is not in favor of data centers because it does not seem like there much the community gets back from them. [Council Member Craig stepped out of the meeting for a phone call at approximately 8:57 AM.] Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 7 Vice Mayor Post said the Town has been good at welcoming residential development, and asked how it could do that more for businesses. He asked whether the Town would like to simply be a bedroom community or if it will attract more businesses and jobs. He said it is more about guiding development in the Town rather than saying no to it. He commented that it is very expensive to be a bedroom community because of all of the maintenance of roadways and other infrastructure involved in residential development. Mr. Angell reminded the Council of the maintenance cost discussion from last year's Council retreat in March and commented that if the Town was a bedroom community, it eventually would need to impose a property tax to pay for upkeep. Mr. Rozema agreed that the Town does not want to become a Town of"no," but that it can now be selective in what opportunities it takes and is in a better position to help craft how it would like North Marana to look. Council Member Ziegler said that people come to Marana because it is open for business and agreed with Vice Mayor Post's comment about guiding development to areas the Council would like them to build rather than declining it altogether. She said many residents want the Town to be a bedroom community, but that the Town will die if it remains that way. She said Chandler focused on residents and employment and tied jobs back to the community. [Council Member Craig rejoined the meeting at approximately 9:05 AM.] Mr. Angell said the world has changed a lot since many of the Towri s codes were written. As an example, he said many of the code provisions were written to account for Black Friday shopping at shopping centers,which have huge parking lots to accommodate for that once a year but otherwise have a lot of vacant parking spaces. He also recommended that the Council look into the Eastmark development in Mesa which was planned for something different but was overtaken by data centers and distribution centers due in part to the way Mesa's codes had been written. Ms.Fairall said that the Town needs to define data centers in its code and address where they should go and not go in its zoning code. Mr. Angell said Mesa did not have a definition for data centers and interpreted them as indoor storage. Council Member Kai agreed that the Town could not remain a bedroom community and that more jobs were needed in the Town. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 8 [A break was taken from 9:16 AM until 9:24 AM. All Council Members were present upon the conclusion of the break.] 9:15AM - Downtown Marana: Discussion regarding vision and concept for a possible 10:15AM Downtown Marana Master Plan By: Scott Stitler and Terry Rozema [Actual start time was 9:24 AM.] Mr. Scott Stitler was introduced to the Council, who presented several slides containing depictions of what Downtown Marana could look like. He described his experience in developing Downtown Tucson and other downtowns in the country, and he said he hopes Marana will be his last project before he retires. He said he hoped to develop the south parcel of land owned by the Town located across from the new Community and Aquatics Center first and then to develop property he owns northward off of Sandario Road in a second phase. He showed depictions of what his current vision for downtown looked like, drawing inspiration from Mule Alley at the Stockyards in Fort Worth, Texas. He said the goal would be to give people a reason to come to Downtown Marana and to make it a memorable destination. Clarifying questions were asked and answered during his presentation. Vice Mayor Post said he liked the presented vision for Downtown Marana and recommended that the Town not think too small when it comes to developing Downtown. He said there is a hunger for things to do in this area and said not to underestimate the need for a venue in this area. Council Member Craig said she loved the conceptual design presented and Council Member Ziegler and Council Member Comerford said they were excited about it. Mayor Honea said it was a great concept, and that much more detail was needed. Mr. Rozema said the details would be forthcoming in a development agreement. He said the first step is to see if the Council was on board with the concept. 10:15AM- [A morning break was taken from 10:55 AM until 11:06 AM. All Council Members 10:30AM were present after the break.] 10:30AM - Preliminary Financial Outlook for FY 2025 and discussion regarding options 12:00PM and challenges for funding growth By: Yiannis Kalaitzidis [Actual start time was 11:06 AM.] Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 9 A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Finance Director Yiannis Kalaitzidis presented on the Town's current financial outlook. For details, including graphs, charts, and tables, please see the presentation slides. Clarifying questions were asked and answered during this presentation. During his presentation, Mr. Kalaitzidis said there were several considerations related to the opening of the Community and Aquatics center next year. Council Member Comerford and Council Member Kai asked what type of fees would be assessed to those who utilize the center. Mr. Montague said the Town would look at what other jurisdictions are doing and bring back options for the Council to consider. Council Member Kai asked if the half-cent sales tax could be utilized to offset some of the cost otherwise recovered by center fees. Mr. Rozema said that decision would ultimately be up to the Council. Discussion also occurred regarding the Town loaning itself money from its reserve fund for projects and then reimbursing the fund through impact fee collection. Vice Mayor Post said he was fine with this as long as it is considered a real transaction, meaning the Town reserve fund would be paid back. 12:00PM - Lunch at Hotel 1:00PM [A lunch break was taken from 12:10 PM until 12:50 PM.All Council Members were present after the break concluded.] 1:00PM- Transportation Planning and Projects: Update on Transportation Master Plan 3:00PM and discussion of major transportation projects. By: Fausto Burruel [Actual start time was 12:50 PM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Public Works Director Fausto Burruel provided an update on the Transportation Master Plan and presented on some of the Town's major transportation projects. For details regarding his presentation, including maps and photographs, please see the presentation slides. Clarifying Special Council Meeting/Retreat Summary Minutes February 14-16,2024 10 questions were asked and answered during his presentation, including about project timelines, funding sources, and developer contributions. During his presentation, Mr. Burruel explained that the Cortaro Road interchange improvements was the Towri s number one ask in the RTA Next program and that the Tangerine improvements was its number two ask. He said the Town is looking into other funding sources, including grants, for the design and construction of the Moore Road interchange. He also highlighted the need for improvements to the Marana Road interchange. Council Member Ziegler asked if the Town had contingency plans in the event RTA Next did not happen. Mr. Rozema said the Town and surrounding jurisdictions are exploring other options, including forming their own RTA if this one does not go through. Council Member Ziegler said she would rather have the Town fix Cortaro Road instead of building the Moore Road interchange. Vice Mayor Post said Cortaro Road will happen even if the Moore Road interchange is constructed. Council Member Ziegler said there would be a lot of angry people if Moore is constructed before Cortaro, and Mr. Rozema said Moore Road would not be built before Cortaro is improved. Council Member Ziegler said her concerns were resolved and that she was now in favor of the Moore Road interchange. Mr. Burruel said the Moore Road interchange would need to occur before the Tangerine interchange is redone, and Vice Mayor Post agreed, saying the Town would shut down if that were not the case. Council Member Comerford said the Town needs to be concerned about the businesses on Cortaro Road if three interchanges are worked on in a row. Council Member Ziegler agreed, and said the Town needed to ensure people still had access to the businesses during construction. Mr. Rozema and Mr. Burruel said it would be challenging, but that conversations were already underway to address the concern. IA break was taken from 2:22 PM until 2:33 PM.All Council Members were present after the break concluded.] Discussion occurred regarding the Twin Peaks/Rattlesnake Pass Road Widening Project depicted on slide 20 of the presentation slides, including regarding the developer's contribution. Mr. Burruel asked if there was an appetite to phase the project,building the portion in frond of the development and the rest at a later date. Mayor Honea recommended it be completed in Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 11 just one phase. Council Member Ziegler agreed, and there appeared to be a consensus among the Council Members. 3:00PM- Afternoon Break 3:15PM [An afternoon break was taken from 2:52 PM until 3:00 PM. All Council Members were present after the break concluded.] 3:15PM- Drainage Planning and Projects: Discussion regarding planning for growth, 4:30PM including discussion regarding Barnett Channel and Marana Road Channel, drainage assets and maintenance, possible funding opportunities, and related topics By:Fausto Burruel [Actual start time was 3:00 PM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Mr. Burruel presented on drainage planning and projects in the Town. For details regarding his presentation, including maps and photographs, please see the presentation slides. Clarifying questions were asked and answered during the presentation, including regarding current channelization of flows, funding opportunities, and ancillary projects that may be needed for the drainage improvements. During his presentation, Mr. Burruel explained the need for the Barnett Channel and Marana Channel, as depicted in the presentation slides. He said the Barnett Channel project would need to be constructed all at the same time, instead of in phases, in order for it to operate properly. He said the Barnett Channel would take certain properties out of the flood plain and would allow for more developable land. Mayor Honea agreed and highlighted that it is the properties east of the freeway that would benefit the most from the channel. Council Member Craig commented that the Town would be losing water that could percolate into its aquifer if flows are diverted through the Bartnett Channel into the Santa Cruz River. Mr. Burruel provided two concepts for the Barnett Channel, as depicted in the presentation slides: a linear park,which would necessitate the removal of Barnett Road,or a concrete channel that would not.He explained the pros and cons of both concepts, as detailed in the slides. Special Council Meeting/Retreat Summary Minutes February 14-16,2024 12 Mayor Honea said he was not in favor of eliminating Barnett Road. Council Member Craig, Vice Mayor Post, Council Member Ziegler, and Council Member Comerford said they were in favor of the linear park concept. Council Member Officer asked if the Town was prepared to maintain a large linear park. Mr. Rozema said a linear park would attract funding for the channel from the Pima County Flood Control District and could benefit Downtown Marana but said the main point for this meeting was to discuss the need for the channel and how to fund it. Mr. Burruel then explained the need for the Marana Channel, as depicted in the presentation slides. He said this channel would not take properties out of the flood plain but would allow for more developable land. Mr. Burruel also explained the need for the Town to develop a plan to maintain the drainage infrastructure it already has responsibility for and drainage infrastructure which will come to it in the future. He said the Public Works department is primarily funded by dedicated highway funding that cannot be used for drainage infrastructure outside of the Town's right-of- ways, and provided examples outlined in the presentation slides. He discussed potential funding opportunities, including the pros and cons of funding through a stormwater utility versus funding through the general fund. Please see the presentation slides for details. Mayor Honea said the Town's utility tax would be pretty high if it added a stormwater utility. Vice Mayor Post said the first thing the Town needed to do was to stop accepting drainage infrastructure as public facilities and leave them for the HOAs to maintain. He said the Town should not take on additional infrastructure until it has a line item in the budget for how it will pay for it. He also said it would be good to bring the Pima County Flood Control District to the table regarding the maintenance of the Santa Cruz River and watersheds. Mr. Montague said part of the conversation needs to involve whether the Town wants HOAs to maintain significant infrastructure projects that affect the Town.Vice Mayor Post said the Town should then require that the HOA's pay the Town for the maintenance. Mr. Burruel said part of the problem is that the Town currently does not have the staff needed to inspect drainage infrastructure or provide enforcement. He also said when the Town allows for a LOMR or CLOMR, the Town must be a backstop for the maintenance of Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 13 the drainage infrastructure. Mr. Burruel said he was requesting a supervisor related to drainage infrastructure this year. Council Member Comerford and others expressed favor towards that idea. Council Member Ziegler asked about outsourcing drainage maintenance. Mr. Burruel said even if it were outsourced, the Town would still need staff on hand to have internal control over it. Mr. Burruel said the purpose of this discussion was to receive feedback on funding sources and that a comprehensive plan would be presented at a later date. Mayor Honea said he was not in favor of a special taxing district as a funding source. Mayor Honea adjourned the meeting for the day at 4:27 PM. Friday, February Mayor Honea called the meeting to order at 8:14 AM and asked the Town 16,2024 Clerk to call the roll. Council Member Kai was absent. All other Council Members were present, constituting a quorum. Mayor Honea led the pledge of allegiance and a moment of silence. 7:30AM- Breakfast at Hotel 8:15AM 8:15AM - Water and Water Reclamation: General update and discussion regarding 10:00AM water resources, including DAWS update, water/water reclamation infrastructure long-range and system-wide planning, water quality issues, and funding challenges By:Jing Luo [Actual start time was 8:14 AM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Water Director Jing Luo provided an update on the Town's modification of its Designation of Assured Water Supply (DAWS), water resource acquisitions, infrastructure, long-range and system-wide planning, paper sewer capacity, the Town's water reclamation facility, water quality and PFAs, and funding. For detailed information, including graphs, charts, maps, and images, please see the presentation slides. Clarifying questions were asked and answered during this presentation. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 14 Dr. Luo provided an update on the Colorado River shortage. She said last winter was a very good snow year that brought the elevation of Lake Powell up by 60 feet and temporarily relieved the drought situation. She said Lake Mead is now at Tier 1 instead of Tier 2, and Mr. Montague highlighted that this means the Town will get a portion of its Non-Indian Agricultural (NIA) Central Arizona Project (CAP) water that was lost with Tier 2. Dr. Lou also provided a summary of where the Town was in its drought preparedness plan. Please see the slides for more information. Regarding the Town's DAWS, Dr. Luo explained that the red line in slide 7 of the presentation slides constitutes the Town's existing DAWS limit.The Town is seeking a modification of its existing DAWS to ensure it has enough capacity for continued development. Mr. Montague said the DAWS ensures the Town does not run out of paper capacity and said the DAWS process takes a long time to complete. Dr. Luo explained that it submitted its application in May of 2022 and received a letter of completeness on December 22, 2023. Objections were received during the public comment period. The Town anticipates receiving final approval in March or April of 2024. Regarding water resource acquisitions, Dr. Luo said the Town is currently heavily reliant on Central Arizona Groundwater Replenishment District (CAGRD) water and is aiming to maximize its renewable water supply. She highlighted that, pursuant to recommendations from the Town's nine-month water resources task force,the Town is positioned to purchase 12,000 acre-feet of long-term storage credits (LTSCs) from the Tohono O'odham Nation and that a purchase and sale agreement would be coming before Council on February 20, 2024. Vice Mayor Post said this purchase was beneficial from a sustainability standpoint because the water is pulled from our own aquifer. He recommended we purchase more water from the Nation. Mayor Honea agreed. Vice Mayor Post recommended the Town purchase from the Nation each year, if possible. Mr. Montague said part of the plan was to obtain as many renewable resources as possible instead of one-time credits. Council Member Craig asked if the physical water was actually going into our aquifer. Council Member Comerford said it was and was therefore a double benefit. Vice Mayor Post said he would like to see a reserve"fund" of water resources in the same way the Town contributes to its reserve fund financially. He recommended setting aside water every year and adding more than the Town uses to develop a good portfolio over time. He asked Mayor Honea if a policy to that effect could be brought before Council as an agenda item. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 15 Dr. Luo provided an update on the Santa Cruz River Effluent Recharge project and said the Town has received a three million dollar grant from the Water Infrastructure Finance Authority of Arizona (WIFA) to develop this project. Dr. Luo also summarized the Town's effort to purchase a long-term effluent lease/credit from the Cortaro-Marana Irrigation District (CMID). Please see the presentation slides for more information. Discussion occurred regarding the Town's willingness to engage with CMID and the Bureau of Reclamation, and Mr. Rozema said the Town would re-engage with CMID at the Board level to get the ball rolling again. Dr. Luo then provided updates regarding the Marana Water Reclamation Facility (WRF) and its plan for renewable water supplies. Please see the presentation slides for details, including images and charts. She requested Council feedback and input. Mayor Honea commented that the water table is going up in Marana, and that the primary concern was having enough water credits. He highlighted a couple of current Legislative efforts that might be beneficial to Marana in that regard. Dr.Luo provided an update on the Town's water conservation programming, and said the Town received a grant from WIFA for its rebate program. Please see the presentation slides for more detailed information. Vice Mayor Post praised the use of smart water meters and said he was not a fan of rainwater harvesting. Mayor Honea agreed regarding rainwater harvesting, praised low-flow toilets, and recommended adding regulations mandating them in new development. Mr. Rozema said most manufacturers now build efficient appliances. Council Member Ziegler said most home models have efficient appliances and that they help sell houses. She did not think a mandate was necessary. Council Member Comerford and Council Member Craig said rainwater harvesting might make sense to some residents. Vice Mayor Post said it is important to provide education and outreach. Mr. Montague said part of the grant funding involved education and outreach. Mr. Montague said that the Town's conservation program will change over time based on community needs. He said a few examples were provided at this meeting, but that the vision was for this to be administratively handled rather than each conservation device coming before Council. Council Member Craig said that approach made sense. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 16 Dr. Luo presented on long-range, system-wide planning related to sewer, the water reclamation facility, and on the Town's current paper sewer capacity. She said the Town is currently above its paper capacity limit but has plenty of physical capacity. She said Town staff initiated a meeting with the Arizona Department of Environmental Quality (ADEQ) in November of 2023 and secured assurances that if could continue development activities in the Town notwithstanding the paper capacity issue. Mr. Rozema complemented the Water Department on its work and said if the old rule held, the Town would be required to build expensive treatment plants that wouldn't be used for ten years just to keep up with paper capacity, which did not make sense. Please see the presentation slides for details. Dr. Luo provided an update on the East Tangerine 16-ince X-Zone Transmission Line and the Marana Park Reservoir/Well project. Dr. Luo also provided an update related to PFAS and where the Town will need to install additional treatment plants. Mr. Montague said that federal regulations will be forthcoming that will require the construction of additional treatment facilities to treat PFAS. Please see the presentation slides for more detail, including maps, charts, and images. Mayor Honea asked if the Marana Park well will need PFAS treatment. Dr. Luo confirmed Marana Park is one of the facilities that will need treatment, and that the site is the first priority in the Town's proposed treatment installation plan. Vice Mayor Post asked if the treatment plant costs would be borne by water customers. Mr. Montague said it would be challenging to put capital costs on water rates, but that the Town would need to figure out how to incorporate what rates will be for operation and maintenance costs of the treatment facilities once they are constructed. Council Member Comerford asked if the PFAS litigation would provide payment. Ms.Fairall said the litigation would provide some relief, and that future claims would be allowed as part of the settlement. Vice Mayor Post said it was interesting that the federal government is set to impose regulation on thousands of small communities across the country without any means for federal assistance and recommended it would be good to wait to see if the federal government decides to provide funding before assessing ratepayers. Dr. Luo provided an update on funding opportunities the Water Department has taken advantage of and of funding challenges. Please see the presentation slides for specifics. Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 17 Vice Mayor Post asked if the Town has considered selling or giving away some of its smaller water systems that are not tied into the main system. Mayor Honea commented that the water projects presented are important because they involve the health and welfare of the Town's citizens and asked if money for the projects can be borrowed from its reserve fund and paid back by enterprise funds. Mr. Montague said he believes that is the case. Mayor Honea said he does not want the Town to raise water rates if possible. 10:00AM- Morning Break & Hotel Check-out 10:45AM [A morning break was taken from 10:33 AM until 10:57 AM. All six Council Members participating in this day's meeting were present when the break concluded.] 10:45AM- Facilities Master Plan: Update on the Facilities Master Plan (FMP) and 12:00PM discussion regarding location of future town facilities By:Andrea De La Cruz and Facilities Master Plan Consultants: Chad Billings and Emily Kutzler [Actual start time was 10:57 AM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Assistant to the Town Manager Andrea De La Cruz introduced the topic and the Facilities Master Plan Consultants, Chad Billings and Emily Kutzler. Mr. Billings provided an overview of the purpose and timeline of the Facilities Master Plan and its progress thus far. He also outlined the Plan's mission, goals, and guiding principles. Ms. Kutzler summarized their findings, including projected staff growth projections per department and current and future square footage needs, and she outlined the conditions of each of the Town's facilities and recommended possible solutions for each one. Clarifying questions were asked and answered throughout the presentation. For specifics, please see the presentation slides, which include charts and maps of potential future site locations for some facilities and recommended solutions. Council Member Comerford was surprised at the recommendation that the entire Marana Municipal Complex needed to be remodeled. Ms. Kutzler said the remodel would not involve gutting the building and that it would be Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 18 phased. Mr. Billings said it was more about reorganizing office space for better efficiencies in a new work environment. Mr. Billings presented the Council with a couple of options for their consideration, feedback, and direction. The first was to either provide a new Marana Operations Center (MOC) location near the Airport for the Public Works Department or to keep Public Works there and move the other departments utilizing the MOC elsewhere. The second was to either provide a new police substation for the police department in a more centrally located area along Twin Peaks and I-10 or to utilize the MOC as the substation. Regarding the first option, Vice Mayor Post said he liked the idea of locating Public Works at the proposed Airport location. He said it lends itself to future growth for the Town and is in a central location for the department. He said it also puts them close to Avra Valley Road, which is a good road for hauling equipment. Mr. Montague said one of the considerations was operational efficiencies. Mr. Rozema said it would also put the management of Public Works closer to the management of one of their divisions (the Airport). Regarding the second option, in answer to questions from Council Members, Mr. Rozema said the MOC building's exterior would need some upgrades primarily related to security, but that the interior was already equipped as a substation. He said most arrests take place in the areas of Ina Road and Cortaro Road in the Town. Council Member Ziegler said it would be most efficient to utilize the MOC as a substation. Ms. De La Cruz said town staff would continue to work with the consultants to draft a report and would bring it back before Council. 12:00PM - Lunch at Hotel 1:00PM [A lunch break was held from 11:51 AM until 12:25 PM. All six Council Members participating in this day's meeting were present after lunch concluded.] 1:00PM - Parks and Recreation Master Plan: Update on the Parks and Recreation 2:00PM Master Plan and discussion regarding upcoming and future projects, including discussion of the development of regional parks,by developers or the Town, and timing relative to funding sources By:Jim Conroy Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 19 [Actual start time was 12:25 PM.] A copy of the presentation slides is on file with the Town Clerk's Office.Please see the slides for details regarding the presentation. Parks and Recreation Director Jim Conroy provided updates related to various completed and ongoing Parks and Recreation projects, including the following: • the Honea Heights Neighborhood Park project (completed), • the El Rio CMID Turnout (completed), • the Pole Barn Restoration project (completed), • the Gladden Farms Dog Park project (completed), • the Loop Improvement project (completed), • the Tortolita Preserve Trailhead project (completed), • the Gladden Farms New Baseball Fields project (completed), • the Community and Aquatics Center project (under construction), • the Cal Portland Section of the Loop Trail project(under construction), • the Honea Heights Neighborhood Park - Phase II project (in design), • the Tangerine Sky Park- Phase II project (in design), • the Saguaro Bloom Community Park Phase I project (going to out to bid soon), • the Saguaro Bloom Community Park Phase II project (in design), • and the El Rio Recreation Area, Water Quality, and Disc Golf Course projects. Clarifying questions were asked and answered during the presentation. For more information, including maps, charts, and images, please see the presentation slides. Vice Mayor Post said he was impressed with how the El Rio Preserve turned out. Mr. Conroy said it was a win for the community and said teachers and students often utilize the amenity. Vice Mayor Post also commented during the presentation that it was very important for the Town to take care of its children in general and highlighted the work of little leagues and swim teams. Council Member Comerford and Council Member Ziegler said any baseball fields constructed should be constructed with lighting. Regarding the Community and Aquatic Center update,Vice Mayor Post said the Town needs more hotels because the center will draw in a lot of people to Marana. Special Council Meeting/Retreat Summary Minutes February 14-16,2024 20 Regarding the Cal Portland Segment of the Loop Path project, Mayor Honea and Vice Mayor Post said the path was a great asset to the community and Mayor Honea said it ties us all together. Regarding the Saguaro Bloom Community Park projects, Council Member Ziegler asked if the sports courts were taken out of the park. Mr. Conroy said they were taken out of Phase 1 but will be in Phase II which should move forward next year. Council Member Ziegler said that was fine as long as they remain part of the park. Mr. Conroy asked the Council for feedback regarding what the Town should do with the existing pool in Ora Mae Ham District Park once the Aquatics Center opens and showed slides with possible options. Please see the presentation slides for details. Council Member Ziegler recommended pickle ball courts. Mayor Honea recommended a building that could be used for events. Mr. Rozema said there was also a need for additional parking at the park, and suggested the filled-in pool could be utilized for that purpose. Mr. Conroy asked the Council if new regional parks should be Developer- driven projects or if the Town should assume design and development responsibility for these large-scale projects. Mayor Honea said development agreements need triggers - for example, a developer would need to build the park before pulling the 400th building permit. He said that dollar amounts should no longer be used in these agreements. Ms. Fairall said the Town cannot put the project in the Towri s infrastructure improvement plan without a dollar amount. Mr. Rozema said the direction being sought from the Council at this meeting was whether the Town should build the parks itself to ensure they meet Town standards and then have the developers pay for it (i.e., developer paid,Town driven).Vice Mayor Post and Council Member Ziegler said they agreed with this approach and that it is important for the Town to keep control of these projects. Mr. Conroy asked what the Council's vision was for the timing of projects relative to available cash flow (e.g. collection of impact fees). Vice Mayor Post said bonding for individual departments might be in order. Council Member Ziegler asked if the Town could utilize a loan from the Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 21 general fund and repay it with impact fees. Ms. Fairall said that was an option. Vice Mayor Post recommended development agreements that required developers to pay for parks at certain trigger points so the developers front the money instead of the Town through the general fund. Mayor Honea adjourned the meeting at 1:53 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council Special Meeting/Retreat held on February 14 - 16, 2024. I further certify that a quorum was present. David L. Udall, Town Clerk . < 4C11` MARAIVA AZ ESTABLISHED 1977 Special Council Meeting/Retreat Summary Minutes February 14- 16,2024 22