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1 MARANA TOWN COUNCIL REGULAR COUNCIL MEETING NOTICE AND AGENDA W. Civic Center Drive, Marana, Arizona Council Chambers, March 17, 2015, at or after 7:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member Pursuant to A.R.S , notice is hereby given to the members of the Marana Town Council and to the general public that the Town Council will hold a meeting open to the public on March 17, 2015, at or after 7:00 PM located in the Council Chambers of the Marana Municipal Complex, W. Civic Center Drive, Marana, Arizona. ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. As a courtesy to others, please turn off or put in silent mode all pagers and cell phones. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 7:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. Marana Regular Council Meeting 03/17/2015 Page 1 of 111

2 All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, the Council Chambers are wheelchair and handicapped accessible. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Town Clerk at (520) Requests should be made as early as possible to arrange the accommodation. Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at by linking to the Town Clerk page under Agendas, Minutes and Recent Actions. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at , Monday through Friday from 8:00 AM to 5:00 PM. This Notice and Agenda Posted no later than 24 hours prior to the meeting, at the Marana Municipal Complex, W. Civic Center Drive, the Marana Operations Center, 5100 W. Ina Road, and at on the Town Clerk page under Agendas, Minutes and Recent Actions. CALL TO ORDER AND ROLL CALL REGULAR COUNCIL MEETING PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities and the Town's overhead projector/document reader. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. PROCLAMATIONS Marana Regular Council Meeting 03/17/2015 Page 2 of 111

3 1 Proclamation: April 2015 as Fair Housing Month MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS P 1 Presentation: Relating to Intergovernmental Relations; report from the Town s lobbyist, Triadvocates, regarding the 2015 session of the Arizona state legislature and related intergovernmental affairs (Anthony Hunter) CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately. C 1 C 2 C 3 C 4 Resolution No : Relating to Community Development; authorizing the Chief of Police to apply for grant funding from the Governor s Office of Highway Safety for the purchase of equipment and the funding of overtime for the Marana Police Department for fiscal year (Lisa Shafer) Resolution No : Relating to Development; approving a final plat for Gladden Farms Blocks 14 & 15 Lots 1-70, Block A and Common Areas A-1, A-2 and B-1 - B-7 located approximately at the southeast corner of Tangerine Farms Road and Heritage Park Drive (Steven Vasquez) Resolution No : Relating to Administration; approving and authorizing the Finance Director to execute an Inmate Work Contract between the Town of Marana, the Arizona Department of Corrections, and the Management & Training Corporation for inmate labor services (Jane Fairall) Approval of February 10, 2015 and February 17, 2015 Study Session Minutes and approval of February 17, 2015 Regular Council Meeting Minutes (Jocelyn C. Bronson) LIQUOR LICENSES L 1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for a new Series #12 Restaurant liquor license submitted by H. J. Lewkowitz on behalf of Chipotle Mexican Grill #2371, located at 5940 W. Arizona Pavilions Drive, Marana, Arizona (Jocelyn C. Bronson) Marana Regular Council Meeting 03/17/2015 Page 3 of 111

4 BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A 1 A 2 Resolution No : Relating to Development; approving and authorizing the Mayor to execute the Agreement for Construction of Water Facilities for the Marana Center development project (formerly known as Marana Spectrum) (Frank Cassidy) Resolution No : Relating to Development; approving and authorizing the Mayor to execute the Leman Academy of Excellence Right-of-Way Abandonment Agreement (Frank Cassidy) ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Gilbert Davidson) EXECUTIVE SESSIONS Pursuant to A.R.S , the Town Council may vote to go into executive session, which will not be open to the public, to discuss certain matters. E 1 Executive Session pursuant to A.R.S (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. FUTURE AGENDA ITEMS Notwithstanding the mayor s discretion regarding the items to be placed on the agenda, if three or more Council members request that an item be placed on the agenda, it must be placed on the agenda for the second regular Town Council meeting after the date of the request, pursuant to Marana Town Code Section 2-4-2(B). ADJOURNMENT Marana Regular Council Meeting 03/17/2015 Page 4 of 111

5 From: Jocelyn C. Bronson, Town Clerk Date: March 17, 2015 Subject: Proclamation: April 2015 as Fair Housing Month Item 1 Attachments: April as Fair Housing Month Marana Regular Council Meeting 03/17/2015 Page 5 of 111

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7 To: From: Mayor and Council Anthony Hunter, Management Assistant Date: March 17, 2015 Strategic Plan Focus Area: Commerce Item P 1 Strategic Plan Focus Area Additional Info: Commerce Focus Area, Principle Statement 3 - We will seek and retain diverse industries and commerce in order to promote sustainable economic health Initiative 19 - Market the Town's high quality K-12 education as a compelling factor for families relocating as part of business/industry recruitment efforts (c) - Collaborate on legislative agenda and advocacy where mutually beneficial Initiative 26 - Develop partnerships throughout the state and region to assist Marana in commercial and industrial development activities (b) - Identify legislative needs; develop draft language; engage in legislative advocacy to support efforts to attract, retain and expand commerce and industry Subject: Presentation: Relating to Intergovernmental Relations; report from the Town s lobbyist, Triadvocates, regarding the 2015 session of the Arizona state legislature and related intergovernmental affairs (Anthony Hunter) Discussion: Triadvocates, the Town of Marana's liaison to the State legislature, will make a presentation on the current legislative session and related intergovernmental affairs. Staff Recommendation: N/A Suggested Motion: None, presentation only. Marana Regular Council Meeting 03/17/2015 Page 7 of 111

8 Attachments: No file(s) attached. Marana Regular Council Meeting 03/17/2015 Page 8 of 111

9 To: From: Mayor and Council Lisa Shafer, Community Development Director Date: March 17, 2015 Strategic Plan Focus Area: Not Applicable Item C 1 Subject: Resolution No : Relating to Community Development; authorizing the Chief of Police to apply for grant funding from the Governor s Office of Highway Safety for the purchase of equipment and the funding of overtime for the Marana Police Department for fiscal year (Lisa Shafer) Discussion: For the last nine consecutive years the Town of Marana has been awarded grant funding from the Governor's Office for Highway Safety (GOHS) to combat impaired and aggressive drivers and take part in enforcement efforts in coordination with local and regional partners like the Southern Arizona DUI Task Force. Marana has also received DUI Abatement Grants funded by the Oversight Council on Driving or Operating under the Influence Abatement. Over the past few years, the number of impaired drivers on Marana streets has been greatly reduced due to these efforts. Although great strides have been made in making Marana s roadways safer, there are still a large number of impaired drivers getting behind the wheel every day. The Marana Police Department is responding to this problem by increasing education, visibility, enforcement, and officer training. With an overall goal to reduce the number of accidents, injuries, and deaths caused by impaired and aggressive drivers, staff requests authorization to submit proposals to the GOHS for grant funding for FY for an unmarked traffic enforcement vehicle, radars and additional overtime deployments for Speed and DUI enforcement. If awarded, overtime funding for combating impaired drivers will allow Marana to continue participation on the Southern Arizona DUI Task Force, increasing the number of marked patrol units on the streets during peak DUI times and in targeted locations. This increased activity will serve as a deterrent and by increased formal enforcement action to reduce the number of impaired and aggressive drivers on Arizona roadways. The Town will provide event-specific, department-initiated speed, DUI and speed enforcement and work in a coordinated effort with Marana Regular Council Meeting 03/17/2015 Page 9 of 111

10 other agencies to reduce the number of individuals under the influence through enforcement and education efforts and to reduce the number of aggressive drivers in the region. The DUI Abatement grants will provide for more DUI enforcement as well as fund coordinated efforts to conduct warrant sweeps. Last year these warrant sweeps resulted in 69 arrests and $150,091 in recovered bond money. The Town is also requesting funding for programs to combat excessive speed and aggressive driving, to initiate a coordinated education and enforcement effort utilizing internal resources and allowing the MPD to increase efforts to reduce speeding and aggressive and impaired driving, heading off the behaviors that lead to increased incidents of motor vehicle accidents. By proactively addressing the issues and reducing the burden of accident investigation, the MPD will be able to leverage freed-up manpower to more aggressively address the ongoing I-10 closures and issues in school zones and neighborhoods. Financial Impact: Fiscal Year: Budgeted Y/N: Amount: 2016 Y Maintenance Costs The Town will be responsible for the operation, maintenance, updates, and replacement costs of the equipment purchased with grant funding. DUI Task Force and Speed Enforcement overtime and employee-related expenses will be covered by the grant. Staff Recommendation: Staff recommends approval of the Resolution No authorizing the Chief of Police to apply for grant funding from the Governor's Office of Highway Safety. Suggested Motion: I move to adopt Resolution No , authorizing the Chief of Police to apply for grant funding from the Governor s Office of Highway Safety for the purchase of equipment and the funding of overtime for the Marana Police Department for fiscal year Attachments: Resolution Marana Regular Council Meeting 03/17/2015 Page 10 of 111

11 MARANA RESOLUTION NO RELATING TO COMMUNITY DEVELOPMENT; AUTHORIZING THE CHIEF OF POLICE TO APPLY FOR GRANT FUNDING FROM THE GOVERNOR S OFFICE OF HIGHWAY SAFETY FOR THE PURCHASE OF EQUIPMENT AND THE FUNDING OF OVERTIME FOR THE MARANA POLICE DEPARTMENT FOR FISCAL YEAR WHEREAS the Governor s Office of Highway Safety (GOHS) is seeking proposals from state and local agencies for projects relating to all aspects of highway safety; and WHEREAS the Town of Marana is interested in submitting projects to be considered for funding in the form of reimbursable grants from the National Highway Traffic Safety Administration and the Arizona Oversight Council on Driving or Operating under the Influence Abatement; and WHEREAS the Town of Marana recognizes its duty to protect its citizens through effective police powers; and WHEREAS the Marana Police Department is working to increase enforcement to reduce excessive speeding and aggressive driving by drivers and the number of impaired drivers on Arizona roadways; and WHEREAS grant funding will assist the Marana Police Department in purchasing equipment to support traffic safety initiatives and in funding overtime DUI and speed enforcement, allowing the Marana Police Department to increase efforts to reduce speeding and aggressive and impaired driving, heading off the behaviors that lead to increased incidents of motor vehicle accidents. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA AS FOLLOWS: SECTION 1. The Chief of Police is hereby authorized to apply for grant funding from the Governor s Office of Highway Safety for the purchase of equipment and the funding of overtime for the Marana Police Department for fiscal year SECTION 2. The Town s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of this resolution, including the execution of all agreements, contracts and documents related to GOHS funding for the Marana Police Department during fiscal year Resolution No Marana Regular Council Meeting 03/17/2015 Page 11 of 111

12 PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 17th day of March, Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Resolution No Marana Regular Council Meeting 03/17/2015 Page 12 of 111

13 To: From: Mayor and Council Steven Vasquez, Planner I Date: March 17, 2015 Strategic Plan Focus Area: Not Applicable Item C 2 Subject: Resolution No : Relating to Development; approving a final plat for Gladden Farms Blocks 14 & 15 Lots 1-70, Block A and Common Areas A-1, A-2 and B-1 - B-7 located approximately at the southeast corner of Tangerine Farms Road and Heritage Park Drive (Steven Vasquez) Discussion: Request Rick Engineering, on behalf of KB Home Tucson, is requesting the approval of a final plat consisting of 70 lots, Block A and common areas on acres within the Gladden Farms development. Location The subdivision will be located in Blocks 14 and 15 of the Gladden Farms block plat, approximately at the southeast corner of Tangerine Farms Road and Heritage Park Drive. Zoning The zoning for Blocks 14 & 15 is R-3.5 (Single Family Residential - minimum lot size of 3,500 square feet); however, the lots will be platted at a minimum size of 6,000 square feet in order to waive the requirement for an on-site community pool facility per Ordinance No The minimum lot size is 6,000 (lots and 64-69) with an average lot size of 6,157 square feet. Transportation This first phase of the subdivision will have an entry off Tangerine Farms Road at Linters Way which has a 52 foot wide right-of-way. There will also be a temporary 20 foot emergency access easement located at the end of the cul-de-sac on Old Mill Place which will be vacated upon the completion of phase two of the subdivision. The typical internal street section is 46 foot wide right-of-way. Marana Regular Council Meeting 03/17/2015 Page 13 of 111

14 Park Requirement and Trail Connectivity This first phase of Blocks 14 & 15 require a minimum of 12,950 square feet of improved recreation area. A total of 186,530 square feet of developed recreation area is provided. The active recreation area has been planned for a portion of Common Area "A-1" which is located at the northwest corner of the subdivision between lots 14 and 15. Pedestrian trails will be located along the western portion of the subdivision and, in conjunction with phase two of the subdivision, will provide connectivity to Heritage Park on the north and to Gladden Farms Community Park on the south. Staff Recommendation: Staff has reviewed the request against the requirements of the Marana Land Development Code, the Gladden Farms Design Standards and the Marana General Plan. This final plat is in substantial conformance with all required development regulations and design guidelines and staff recommends approval. Suggested Motion: I move to adopt Resolution No approving a final plat for Gladden Farms Blocks 14 & 15 Lots 1-70, Block A and Common Areas A-1, A-2 and B-1 - B-7 located approximately at the southeast corner of Tangerine Farms Road and Heritage Park Drive. Attachments: Resolution PRV GF 14 & 15 FP App PRV GF 14 & 15 FP Map PRV GF 14 & 15 FP Marana Regular Council Meeting 03/17/2015 Page 14 of 111

15 MARANA RESOLUTION NO RELATING TO DEVELOPMENT; APPROVING A FINAL PLAT FOR GLADDEN FARMS BLOCKS 14 & 15 LOTS 1-70, BLOCK A AND COMMON AREAS A-1, A-2 AND B-1 B-7 LOCATED APPROXIMATELY AT THE SOUTEAST CORNER OF TANGERINE FARMS ROAD AND HERITAGE PARK DRIVE WHEREAS, on December 2, 2001, the Mayor and Town Council adopted Resolution No , approving the final block plat for Gladden Farms, Book 55 Page 60; and WHEREAS, on February 1, 2005, the Mayor and Town Council adopted Resolution No , approving the final block plat for Gladden Farms Blocks 13, 14, 15, Book 59, Page 21; and WHEREAS, on January 22, 2008, the Mayor and Town Council adopted Ordinance No , approving a rezoning of Gladden Farms Blocks 14 and 15 from VC and R-8 to R- 3.5; and WHEREAS, on September 16, 2014, the Mayor and Town Council adopted Resolution No , approving a preliminary plat for Gladden Farms Blocks 14 & 15; and WHEREAS, Rick Engineering Company, on behalf of KB Home Tucson, Inc., has applied for approval of a final plat for a 70-lot single-family residential home subdivision within Blocks 14 and 15 of Gladden Farms generally located at the southwest corner of Tangerine Farms Road and Heritage Park Drive; and WHEREAS the Mayor and Council of the Town of Marana find that this resolution is in the best interests of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the final plat for Gladden Farms Blocks 14 & 15 Lots 1-70, Block A and Common Areas A-1, A-2 and B-1 B-7 located approximately at the southeast corner of Tangerine Farms Raod and Heritage Park Drive is hereby approved. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17th day of March, Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Resolution No /3/2015 SEV Marana Regular Council Meeting 03/17/2015 Page 15 of 111

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22 To: From: Mayor and Council Jane Fairall, Deputy Town Attorney Date: March 17, 2015 Strategic Plan Focus Area: Not Applicable Item C 3 Subject: Resolution No : Relating to Administration; approving and authorizing the Finance Director to execute an Inmate Work Contract between the Town of Marana, the Arizona Department of Corrections, and the Management & Training Corporation for inmate labor services (Jane Fairall) Discussion: The Town of Marana has maintained an agreement with the Arizona Department of Corrections and the Management & Training Corporation for a number of years to obtain use of inmate labor crews from the Marana Community Correctional Treatment Facility (MCCTF) for work on Town public works projects. The most recent agreement expires on March 31, 2015; if approved, the proposed agreement will run for 5 years from April 1, The proposed agreement includes the same terms and conditions as the previous agreement between the parties. Per state statute, under the agreement the Town will pay 50 cents per hour for inmate labor. Financial Impact: Fiscal Year: 2015 Budgeted Y/N: Y Amount: $90,000 The costs attributable to this agreement are budgeted within contract services for the various departments that use these services. Staff Recommendation: Staff recommends approval of the contract. Marana Regular Council Meeting 03/17/2015 Page 22 of 111

23 Suggested Motion: I move to adopt Resolution No , approving and authorizing the Finance Director to execute an Inmate Work Contract between the Town of Marana, the Arizona Department of Corrections, and the Management & Training Corporation for inmate labor services. Attachments: Resolution Inmate Work Contract Marana Regular Council Meeting 03/17/2015 Page 23 of 111

24 MARANA RESOLUTION NO RELATING TO ADMINISTRATION; APPROVING AND AUTHORIZING THE FINANCE DIRECTOR TO EXECUTE AN INMATE WORK CONTRACT BETWEEN THE TOWN OF MARANA, THE ARIZONA DEPARTMENT OF CORRECTIONS AND THE MANAGEMENT & TRAINING CORPORATION FOR INMATE LABOR SERVICES WHEREAS the Town of Marana has maintained an agreement with the Arizona Department of Corrections and the Management & Training Corporation for a number of years to obtain use of inmate labor crews from the Marana Community Correctional Treatment Facility; and WHEREAS the most recent agreement between the parties expires on March 31, 2015, and the parties wish to continue to maintain an agreement to provide inmate labor services to the Town; and WHEREAS the Mayor and Council of the Town of Marana find it is in the best interests of its citizens to approve the Inmate Work Contract. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, as follows: SECTION 1. The Inmate Work Contract between the Town of Marana, the Arizona Department of Corrections and the Management & Training Corporation for inmate labor services, attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved and the Finance Director is hereby authorized and directed to execute it for and on behalf of the Town of Marana. SECTION 2. The Town s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to implement and carry out the terms, obligations, and objectives of the contract. Marana Resolution No Marana Regular Council Meeting 03/17/2015 Page 24 of 111

25 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 17th day of March, Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Marana Resolution No Marana Regular Council Meeting 03/17/2015 Page 25 of 111

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52 To: Mayor and Council Submitted For: Jocelyn C. Bronson, Town Clerk From: Date: March 17, 2015 Subject: Suzanne Sutherland, Assistant to the Town Clerk Item C 4 Approval of February 10, 2015 and February 17, 2015 Study Session Minutes and approval of February 17, 2015 Regular Council Meeting Minutes (Jocelyn C. Bronson) Attachments: Study Session Minutes Study Session Minutes Regular Council Meeting Minutes Marana Regular Council Meeting 03/17/2015 Page 52 of 111

53 STUDY SESSION MINUTES W. Civic Center Drive, Marana, Arizona Council Chamber, February 10, 2015, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor David Bowen, Council Member Patti Comerford, Council Member Herb Kai, Council Member Carol McGorray, Council Member Roxanne Ziegler, Council Member STUDY SESSION CALL TO ORDER AND ROLL CALL. Mayor Honea called the meeting to order at 6:00 p.m. Town Clerk Bronson called roll. Council Member Kai was excused; there was a quorum present. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE. Led by Mayor Honea. APPROVAL OF AGENDA. Motion to approve by Council Member McGorray, second by Vice Mayor Post. Passed unanimously 6-0. CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities and the Town's overhead projector/document reader. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. February 10, 2015 Study Session Minutes 1 Marana Regular Council Meeting 03/17/2015 Page 53 of 111

54 DISCUSSION/DIRECTION/POSSIBLE ACTION P 1 Relating to Administration; presentation and discussion of the framework for development of the fiscal year budget and its role in the implementation of the Strategic Plan (Gilbert Davidson and Erik Montague). Gilbert Davidson began the presentation noting that Erik Montague will give Council a current update and the preliminary outlook for next year. Then Gilbert will present information to get Council thoughts and feedback on any particular areas where we need to put financial resources. He talked a little about the adoption of Strategic Plan III and Council s vision and the overriding principles adopted by the Council. His presentation focused mainly on making the right investments for economic development and sustainability and that we retain the lessons learned from the recession. Erik Montague began by noting that staff has been working over the last several budget cycles to ensure that we are maintaining a balanced budget and making the investments and applying resources to the key core services. As a result of those decisions, $23.7M is in reserves. He then gave a general fund update for fiscal year 2015 through December. Preliminary numbers are based on the existing rate structure. We have largely recovered in retail sales from There was a steep decline in construction, but it is holding steady. Sales taxes and state shared revenues should show a modest increase. A 6.5% decrease is expected for permits and fees. This is due to preliminarily a reduction of single family residences. For planning purposes we are anticipating about 500. Finance is working closely with the development departments to refine those growth projections. We anticipate that they will be bumped up a little. The new impact fee structure adds a layer of complexity that we will have to watch. For FY 2016 we should be at $36.3M, up from the 2015 budget which had us at about $35.4M in revenue. What is important is not only what has changed but what is changing. It s important that for us to have a balanced budget that we re spending out of the right buckets. He talked about one-time versus ongoing revenues and how they are used differently. Based on these preliminary numbers, ongoing costs in the general fund shouldn t exceed about $34.7M, for a positive change of about $1.2M or about 3.7%. For one-time dollars which should only fund a one-time study, project, investment or item, those dollars are decreasing the most. That is tied directly to the way we budget for single family residence permits. Mr. Montague then moved to the slide relating to pressures on the fiscal year 2016 budget. The biggest pressure being employee compensation as it is the largest operating expense and the largest asset of the town. Working with Human Resources and others, the goal is to maintain a market-based plan. For every one percent change in salary in the general fund, the cost is about $240K. With respect to health insurance costs, this is the first year we have gone self-insured, and we are generally where we had planned to be. We are starting to establish some healthy reserves required to pay future claims, and that will be a key element in maintaining a constant cost. We are looking at about a 5% adjustment for next year, which is a reasonable number. Retirement costs will be mixed. He will go deeper into retirement costs at a future study session and talk about some of the changes, including where we ve been, where we are and where we re going. The largest pool of employees is covered through the Arizona State Retirement System. February 10, 2015 Study Session Minutes 2 Marana Regular Council Meeting 03/17/2015 Page 54 of 111

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