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MINUTES OF THE REGULAR MEETING
OF THE HONORABLE MAYOR AND COUNCIL
OF THE CITY OF CASA GRANDE
HELD IN THE COUNCIL CHAMBERS
510 E. FLORENCE BOULEVARD, CASA GRANDE, AZ 85122
MONDAY, JUNE 20, 2016
 
             
A.   Call to Order

Mayor Jackson called the meeting to order at 7:00 p.m.
 
             
  Invocation

Mark Vanderheyden of Seeds of Hope delivered the invocation.
 
             
  Pledge of Allegiance

Mayor Pro Tempore Montoya led the Pledge of Allegiance to the Flag.
 
             
B.   Roll Call
 
Present: Ralph Varela, Council Member  
  Lisa Fitzgibbons, Council Member  
  Matthew Herman, Council Member  
  Mary Kortsen, Council Member  
  Dick Powell, Council Member  
  Karl Montoya, Mayor Pro Tempore  
  Robert Jackson, Mayor  
Also Present: Larry Rains, Deputy City Manager
Remilie S. Miller, City Clerk
Brett Wallace, City Attorney
Celina Morris, Accounting Manager
William Schwind, Community Services Director
Mark McCrory, Police Chief
Paul Tice, Planning & Development Director
Scott Miller, Fire Chief
Dawn Jett, Human Resources Director
Kevin Louis, Public Works Director
Richard Wilkie, Economic Development Manager
             
C.   Minutes:

Council Member Powell moved to approve the minutes listed below. Council Member Kortsen seconded the motion and was carried with a 7-0 voice vote.
 
             
  C.1    City Council Regular - June 6, 2016  
             
  C.2    Police Personnel Retirement Board - May 16, 2016  
             
D.   Claims  
             
  D.1    Claims - June 2 and 9, 2016

Council Member Varela moved to approve and pay the reported claims dated June 2 and 9, 2016.  Council Member Fitzgibbons seconded the motion and was carried with a 7-0 voice vote.
 
             
E.   Meeting Agenda Approval

Deputy City Manager Rains requested for Mayor and Council to remove Item G.6 from the Consent Agenda and postpone tonight’s scheduled Special Meeting to July 5, 2016.

Mayor Pro Tempore Montoya moved to approve the meeting agenda with changes (Removed Item G.6 from the Consent Agenda and Postponed the Special Meeting to July 5, 2016). Council Member Kortsen seconded the motion and was carried unanimously.
 
             
F.   Special Presentations  
             
  F.1   
Presentation of Check by Elks Lodge #1957 to the
Community Services’ Swim Lesson Scholarship Program


Representatives from the Elks Lodge #1957 Grover Ramsey and Francis Kakar presented a check for $2,000 to Matthew Jankowski for the Community Services’ Swim Lesson Scholarship Program.
 
             
  F.2   
Swear-In of Police Chief McCrory and New Police Officer Keck

City Clerk Miller administered the Loyalty Oath to the new Police Officer Austin Keck and Police Chief Mark McCrory.
 
Mayor and Council congratulate Chief McCrory and welcomed Officer Keck to the City workforce.
 
             
G.   Consent Agenda

Mayor Jackson announced consideration of the Consent Agenda and explained that all items listed preceded by an asterisk (*) would be acted upon by a single roll call vote of the Council, unless some member of the Council or member of the public asked that specific items be removed from the Consent Agenda, discussed and voted upon separately.

Deputy City Manager Rains requested to remove Agenda Item G.6 from the Consent Agenda.

Mayor Pro Tempore Montoya moved for passage of the Consent Agenda, with the exception of Agenda Item G.6. Council Member Fitzgibbons seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
             
  *G.1   
Final Adoption of Ordinance No. 2963
Accepting a Bid from ImageTrend, Inc
Software for the Fire Department's Electronic Patient Care Reporting System


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2963, which appeared before Council for a second reading, accepting a bid from Imagetrend, Inc. for the purchase of Imagetrend Software; authorizing the expenditure of public funds in an amount not to exceed $50,700.00; and authorizing execution of a contract with, or purchase order to, Imagetrend, Inc. in accordance with the terms submitted to the Arizona State Bid List.
 
             
  *G.2   
Final Adoption of Ordinance No. 2964
Accepting a Bid from PFVT Motors, Inc.
Purchase of a 2016 Ford F-450 Dump Truck for the Park's Department


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2964, which appeared before Council for a second reading, accepting a bid from PFVT Motors, Inc. for the purchase of a 2016 Ford F-450 Dump Truck; authorizing the expenditure of public funds in an amount not to exceed $52,947.00; and authorizing execution of a contract with, or purchase order to, PFVT Motors, Inc. in accordance with the terms submitted to the Arizona State Bid List.
 
             
  *G.3   
Consider Appointments to the Casa Grande Youth Commission

The selection panel recommended that Mayor and Council appoint the following individuals to the Casa Grande Youth Commission, with a term to extend through June 30, 2017:
 
Re-appoint                                                  Appoint
  1. Alexandra Chaparro                               1.  Sheyenne Donlay
  2. Brooklyn Johnson                                   2.  Marcela Eldridge
  3. Chase Salcido                                         3.  Nathan Harris
  4. Skylar Goodsell                                      4.  Gloria Holt
  5. Olivia Carter                                           5.  Shawn Johnstone
  6. Simarah Smith                                        6.  Joseph Kolaniak
  7. Savannah McMahon                               7.  Luis Medina
                                                                    8.  Alex Mejia, Jr.
                                                                    9.  Michelle Ramirez

The Casa Grande Youth Commission was established on December 6, 2004. The organization’s mission is to represent the youth of our city, making it a better place through dedication, leadership and creativity.  Commission members are Pinal County residents who are actively enrolled in a public or private school (including charter schools, virtual schools and home schools) in grades eight through twelve (including up to 2-members at-large from a lower or upper grade level of education).

By a 7-0 roll call vote under the Consent Agenda, Council re-appointed Alexandra Chaparro, Brooklyn Johnson, Chase Salcido, Skylar Goodsell, Olivia Carter, Simarah Smith, Savannah McMahon and appointed  Sheyenne Donlay, Marcela Eldridge, Nathan Harris, Gloria Holt, Shawn Johnstone, Joseph Kolaniak, Luis Medina,  Alex Mejia, Jr., and Michelle Ramirez to the Casa Grande Youth Commission with a term to extend through June 30, 2017.
 
             
  *G.4   
3rd Quarterly Report for FY 2015-2016
Pinal County Water Augmentation Authority


By a 7-0 roll call vote under the Consent Agenda, Council accepted Pinal County Water Augmentation Authority's 3rd Quarterly Report for FY 2015-2016.  The reports are filed with the City Clerk's Office.
 
             
  *G.5   
Resolution No. 4981
Approving the Participation in the League of Arizona Cities and Towns
for Fiscal Year July 1, 2016 to June 30, 2017


Deputy City Manager Rains recommended in his Request for Council Action form that Mayor and Council approve the expenditure of $28,230.00 to the Arizona League of Cities and Towns. 

Deputy City Manager Rains reported that the Arizona League of Cities and Towns calculates annual membership dues based on a population formula. The membership dues are equal to a base fee of $3,910.00 plus 47 cents per resident. The population of Casa Grande, based on Department of Economic Security (DES) 2015 estimates, used for the dues calculation is 51,744.
 
The Arizona League of Cities and Towns represents the collective interests of cities and towns at the State Legislature, provides timely information on important municipal services, creates skill-sharpening workshops, develops networking opportunities, offers technical assistance,  and distributes a variety of publications pertaining to municipal government in Arizona. 

The fiscal impact is an expenditure of $28,230.00 from the General Fund. 

By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Resolution No. 4981, approving the Participation in the League of Arizona Cities and Towns for the Fiscal Year July 1, 2016 to June 30, 2017; and expenditure of public funds in an amount not to exceed $28,230.00.
 
             
  G.6   
Resolution No. 4982
Authorizing the Sale of Cessna Business Park Located at the
Donovan M. Kramer, Sr. Industrial Park at the Airport
from Centennial Group One, LLC to National Powder Coating, LLC.

 
Economic Development Manager Wilkie recommended that Mayor and Council approve the Sale of the Cessna Business Park located at 3048 North Cessna Avenue within the Donovan M. Kramer Senior Airport Industrial Park to National Powder Coatings, LLC.

Mr. Wilkie reported on the following sale of the Cessna Business Park:
In accordance with page 1 item 2 of the amended covenants adopted in 1993 “Each proposed sale of property shall be reviewed by the Casa Grande Airport Authority, and they shall make a recommendation to the City Council, who shall approve or disapprove the proposed transaction.”  At their May 17, 2016 meeting the Airport Industrial Park Design Review Committee discussed and approved the sale of the Cessna Business Park lots to National Powder Coating, LLC.   The Cessna Business Park is comprised of three buildings totaling 25,698 s/f of commercial space, of which 6,550 s/f is currently owned by City Electric Supply Co.
 
The existing CC&Rs and the city’s zoning codes will still be the governing documents for the continued use of any activities that locate to this property.
 
DISCUSSION

Economic Development Manager Wilkie offered corrections to reflect in the Resolution that “Centennial Group One, LLC” is the current owner of Cessna Business Park. 

Mr. Wilkie reported that this is a very simple private-owner-sale of the property transaction.  The City does not own this property; however, it requires council approval as written in the Declaration of Covenants, Conditions, and Restrictions (CC&R) for the entire airport industrial park. Further, Mr. Wilkie announced that the CC&R and the current city zoning still governs anything that goes in the industrial park ensuring proper fit and who will fill the spaces.
 
Mayor Jackson conveyed that this is a private property transaction from one private owner to another and recommended for Staff to review the current CC&R to determine if this is something Council want to continue do.

City Clerk Miller read by title only Resolution No. 4982, authorizing the Sale of Cessna Business Park located at the Donovan M. Kramer, Sr. Industrial Park at the Airport, from City Electric Supply Company Centennial Group One, LLC to National Powder Coating, LLC.

Council Member Kortsen moved for passage of Resolution No. 4982 with corrections.  Council Member Fitzgibbons seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Resolution No. 4982 passed and adopted.
             
H.   Public Comments

Mayor Jackson called for public comments. No comments were offered.
 
             
I.   Award of Contracts  
             
  I.1   
Ordinance No. 2965
Accepting a Bid from Empire Southwest
Purchase of an Asphalt Paver

 
Public Works Director Louis recommended that Mayor and Council approve the expenditure of funds for one (1) Weiler P385A asphalt paver from Empire Machinery of Tucson, Arizona in an amount not to exceed $145,627.

Director Louis reported that if approved this purchase will be made from the Houston Galveston Area Council (HGAC) contract SM10-14. This purchase will replace unit 670, a 1998 LeeBoy 1000B paver with 914 hours on it.  This unit is scheduled for replacement this year and meets all established replacement criteria. Unit 670 is a small entry level paver that was used to pave many of the City owned parking lots in the past but it is undersized and underpowered for our current needs. The replacement unit is a midsize paver that has the ability to do parking lots as well as larger street paving projects. It has a larger paving path a self-feeding hopper and it is able to push a loaded truck for continuous paving operation producing smoother finished pavement surface. Used in conjunction with our new milling machine, this paver will increase the division’s ability, efficiency and performance, allowing them to replace larger road sections with new asphalt. Unit 670 will be traded in on this purchase.

Funding for this project is available in the 15/16 vehicle replacement program Project Number 16011 expenditure account 404-21-201-100-8405-16011 in the amount of $160,000. 
 
DISCUSSION

In response to Council Member Herman, Director Louis explained that the paving operation is very limited for this piece of equipment; the hours are not tied to how many we had in this piece of equipment per projects.  This equipment sits around 90% of the time doing nothing until it is actually needed for a project. 
 
Director Louis concurred with Council Member Fitzgibbons comment that the plan is to utilize the new equipment for paving projects and other jobs the equipment is capable of doing as long as the department has funding to pay for the materials.
 
In response to Mayor Pro Tempore Montoya, Director Louis conveyed that each year the department programs materials/maintenance into the operations budget which is $165,000 for this year.
 
Council Member Herman asked what really justifies owning new equipment that is being utilized only 10% of the time.  Also, Council Member Herman suggested hiring someone to conduct the paving rather than utilizing new equipment for such a small amount of time. 
 
In response to Council Member Herman, Director Louis explained that the size of the project determines if it make sense to contract a project.  The department typically performs small projects that cost about $50,000; if the department were to contract out this project, it would probably not cover the cost of mobilizing a contractor to come out.  This piece of equipment is utilized sparingly on smaller projects such as alley paving and small sections of pavement.

City Clerk Miller read by title only Ordinance No. 2965, accepting a bid from Empire Southwest for the purchase of an Asphalt Paver; authorizing the expenditure of public funds in an amount not to exceed $145,627.00; and authorizing execution of a contract with, or purchase order to, Empire Southwest.

Council Member Powell moved for passage of Ordinance No. 2965.  Council Member Fitzgibbons seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Ordinance No. 2965 passed to a second reading.
             
  I.2   
Ordinance No. 2966
Accepting the Proposal for Professional Services from Michael Baker International, Inc.
Provide Professional Engineering Services for the
Downtown Streets Reconstruction Drainage  Master Plan


Public Works Director Louis recommended that Mayor and City Council approve a professional engineering design services contract with Michael Baker International, Inc. in an amount not to exceed $96,110 for Downtown Streets Reconstruction Drainage Master Plan.
 
Director Louis reported that this project is for professional engineering services relating to the preparation of a Stormwater Drainage Master Plan for historic downtown along with a Drainage Design Feasibility Study and Report. As City Council may recall, staff kicked off Phase I of the Downtown Reconstruction project completed in 2007 followed by Phase II completed in 2012.  During the design of Phase II, it was determined that the original drainage improvements that were designed if constructed would have had little to no impact on flood conditions and therefore removed from the scope until further study could be done.  That time is now.  If Council authorizes this contract, the deliverables will be used to facilitate remaining downtown road improvement projects for the Downtown Streets to include all required drainage infrastructure improvements/rehabilitation/reconstruction to address storm water flows.  Each future phase of construction in the downtown will provide these needed drainage improvements as part of their plans.
 
Staff went through a formal Request for Qualifications (RFQ) process for professional services and received eight Statements of Qualifications (SOQs) from consulting firms. One of the SOQs was incomplete and was deemed non-responsive. A review panel was established to review the seven SOQs using the criteria and selection process specified in the published RFQ for the project. The review panel selected Michael Baker International, Inc. as the top ranked and most suitable firm to meet the project needs.
 
Under this contract, Michael Baker International, Inc. will provide professional design services for the drainage study, drainage master plan, conceptual alternatives and design of selected alternative. The project will also perform aesthetics and environmental evaluation comprising of landscape architecture and Low Impact Development (LID) strategies as they pertain to drainage.  The completion of this project will allow for the start of design for that next phase of construction in the downtown area.
 
Funding for this project was authorized in the FY16 budget for $100,000 identified as project 16013 Downtown Streets Reconstruction Phase III, account # 403-21-201-100-8301-16013.
 
DISCUSSION

In response to Council Member Powell, Director Louis explained that Staff will implement the work at downtown with hopes not to conduct any improvement on those streets that have recently been improved.
 
Director Louis conveyed that Staff will determine the total improvements that are needed to address the flooding issues at the downtown area by basically looking at different ways to convey the water from East to West on the North side of the tracks.  The entire drainage basin is about 1½ square miles so it goes much further than historic downtown; but we need to catch those flows, channelize them, and get them to the Westside of the downtown area.
 
Director Louis stated that the work will be a combination of improvements; however, he can’t speculate identifying where those improvements and what type they are today until the study is completed.
 
Director Louis shared envisioning the improvements could be some type of box culvert structure going down the middle of 1st Street (which is one we have not reconstructed).  Staff will have to go through one intersection that was reconstructed, but Staff looked at this and really couldn’t do anything to put a conduit in place in order for it not to tear down.
 
In response to Council Member Kortsen, Director Louis conveyed that the improvement will most likely be from Brown Avenue or 2nd Street by the roundabout and then north of 2nd Street bringing drainage to south of 2nd Street and 1st Street is the most logical street to put a conduit to convey the water to the west.  Casa Grande Avenue would be the limits of drainage improvements on the eastside going all the way to the 84 of the underpass on the Westside.
 
In response to Council Member Varela, Director Louis conveyed that Staff will look at what the proposed improvements will be as in determining how best to make the outreach effort to the community.  Keeping in mind that any construction completed at the downtown area, there will be an extensive outreach project (kick-off meeting and design input from the public).
 
City Clerk Miller read by title only Ordinance No. 2966, accepting the proposal for Professional Services from Michael Baker International, Inc. to provide Professional Engineering Services for the Downtown Streets Reconstruction Drainage Master Plan; authorizing expenditure of public funds in an amount not to exceed $99,610.00; and authorizing the execution of a contract.

Council Member Varela moved for passage of Ordinance No. 2966.  Council Member Herman seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Major Jackson then declared Ordinance No. 2966 passed to a second reading.
             
J.   Boards & Commissions

None
 
             
K.   Ordinances, Resolutions, and Other matters or Subjects Requiring Action by the Council  
             
  K.1   
Accepting the Provisions of Fiscal Year 2016-2017 Public Services/Benefits from
Greater Casa Grande Chamber of Commerce, Casa Grande Main Street, Casa Grande Valley Historical Society, Access Arizona, Pinal County Water Augmentation Authority & Boys and Girls Clubs of the Casa Grande Valley


Accounting Manager Morris recommended that Mayor and Council approve resolutions authorizing agreements to provide funding to partner agencies as approved in the Fiscal Year 2017 budget.

Mrs. Morris reported that the FY2017 budget includes funding to various service organizations which provide a direct benefit to residents of the City of Casa Grande. The organizations receiving funding have all received funding in prior years and were asked to submit an application to the City if they were requesting funds for the current year. Each application included a funding request, an outline of the services provided and a copy of their most recent financial audit. The following service organizations submitted requests and the amount of funding authorized in the FY2017 budget totaling $261,650 is shown for each.

General Fund: 101-11-100-100-7181-10000
Chamber of Commerce - $43,500
CG Main Street - $39,150
CG Valley Historical Society - $34,000
Access Arizona - $25,000
Pinal County Water Augmentation Authority - $20,000

Promotion and Tourism Fund: 211-41-405-113-7181-10000
Boys & Girls Club of Arizona - $100,000

$261,650 is specifically included in the FY2017 budget for funding these partnerships. It is anticipated that the actual impact of the services provided will far outweigh the City’s financial commitment.
 
DISCUSSION
 
Mayor Jackson announced that previously, Access Arizona received funding for $75,000; however, Council is recommending $25,000 for Fiscal Year 2016-2017.  Access Arizona is in the process of trying to decide on what they are going to do.  Council and Staff agree to not issue the funding until they know what they are doing.
 
Mayor Jackson concurred with Council Member Kortsen that Council will have the opportunity to rescind the resolution authorizing the funds for Access Arizona for FY 2016-2017 should the foundation is not successful of identifying on what they will do.
 
Resolution No. 4983
FY 2016-2017 Public Services/Benefits Greater Casa Grande Chamber of Commerce 


City Clerk Miller read by title only Resolution No. 4983, accepting the provision of public services / benefits from the Greater Casa Grande Chamber of Commerce; authorizing the expenditure of public funds in an amount not to exceed $43,500.00; authorizing the execution of an agreement by the City Manager.

Council Member Fitzgibbons moved for passage of Resolution No. 4983.  Council Member Kortsen seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4983 passed and adopted.
 
Resolution No. 4984
FY 2016-2017 Public Service/Benefits Casa Grande Main Street


City Clerk Miller read by title only Resolution No. 4984, accepting the provision of public services / benefits from the Casa Grande Main Street Program; authorizing the expenditure of public funds in an amount not to exceed $39,150.00; authorizing the execution of an agreement by the City Manager. 

Council Member Varela moved for passage of Resolution No. 4984.  Mayor Pro Tempore Montoya seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4984 passed and adopted.
 
 
Resolution No. 4985
FY 2016-2017 Public Service/Benefits Casa Grande Valley Historical Society

 
City Clerk Miller read by title only Resolution No. 4985, accepting the provision of public services / benefits from the Casa Grande Valley Historical Society; authorizing the expenditure of public funds in an amount not to exceed $34,000.00; authorizing the execution of an agreement by the City Manager. 

Mayor Pro Tempore Montoya moved for passage of Resolution No. 4985.  Council Member Herman seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4985 passed and adopted.
 
Resolution No. 4986
FY 2016-2017 Public Service/Benefits Access Arizona

 
City Clerk Miller read by title only Resolution No. 4986, accepting the provision of public services / benefits from the Access Arizona; authorizing the expenditure of public funds in an amount not to exceed $25,000.00; authorizing the execution of an agreement by the City Manager. 

Mayor Pro Tempore Montoya moved for passage of Resolution No. 4986.  Council Member Fitzgibbons seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4986 passed and adopted.
 
 
Resolution No. 4987
FY 2016-2017 Public Service/Benefits Pinal County Water Augmentation Authority

 
City Clerk Miller read by title only Resolution No. 4987,  accepting the provision of public services / benefits from Pinal County Water Augmentation Authority; authorizing the expenditure of public funds in an amount not to exceed $20,000.00; authorizing the execution of an agreement by the City Manager. 

Council Member Herman moved for passage of Resolution No. 4987.  Council Member Powell seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4987 passed and adopted.
 
Resolution No. 4988
FY 2016-2017 Public Service/Benefits Boys and Girls Clubs of the Casa Grande Valley

 
City Clerk Miller read by title only Resolution No. 4988, accepting the provision of public services / benefits from the Boys and Girls Club; authorizing the expenditure of public funds in an amount not to exceed $100,000.00; and authorizing the execution of an agreement by the City Manager. 
 
Council Member Herman moved for passage of Resolution No. 4988.  Council Member Powell seconded the motion and the following roll call vote was recorded:

AYE:  Council Member Ralph Varela
           Council Member Lisa Fitzgibbons
           Council Member Matthew Herman
           Council Member Mary Kortsen
           Council Member Dick Powell
           Mayor Pro Tempore Karl Montoya
           Mayor Robert Jackson

Mayor Jackson then declared Resolution No. 4988 passed and adopted.          
 
             
L.   Public Meetings, Public Hearings, Open Record Reviews, and Closed Record Reviews

 
             
  L.1   
Public Hearing on Water, Wastewater, and Sanitation Rates
and the Proposed City Consolidated Fee and Rate Schedule


Accounting Manager Morris recommended that Mayor and Council hold a public hearing on the proposed fee schedule to include additional public hearing on the proposed City water, wastewater, and sanitation rates.

Mrs. Morris reported that since FY2005 Council has adopted a Comprehensive Fee and Rate Schedule that incorporates all departments and government functions. The schedule is reviewed and generally adopted during the budget process.  The fee and rate schedule functions outside the Casa Grande Municipal Code but is incorporated into it by reference. Prior to the hearing and subsequent consideration by Council, the fees were posted for more than 60 days on the City website. The Council also reviews the fees and rates as part of the budget process.  Fees for water and wastewater are also adopted as part of the consolidated fee schedule after compliance with the public notice provisions of A.R.S. 9-511.01.  Although no additional public hearing is required for adoption of the water and wastewater fees, the public is always permitted to comment on them as part of the hearing on the rate schedule.  Additionally, although all statutory notice requirements were met with respect to the water and wastewater fees, because some of the outreach did not reach the customers as expected in their billings, staff intends to continue outreach to make sure our citizens know they have the opportunity to specifically comment on those rates as part of this hearing. 

The intent for fee and rate changes is to more closely recover the cost of a service from the person or group that benefits from the service while matching each programs cost recovery philosophy.  As a result, fee and rate recommendations are based on cost recovery targets, cost of providing the service and market comparisons. Some fees are set low to remove the barrier for compliance such as dog licenses and some fees attempt to recover 100% of the cost such as adult recreation.  Most fee changes relate to Development Center fees - Planning, Engineering, Land Use and Zoning. The fees have been adjusted to cover the actual cost of providing that service. Several fees have actually been reduced to reflect current costs of service. In addition some of the fees have been increased to cover an expanded scope of service covered by the fee. Limited changes are included in our Community Services department and airport. Water, Wastewater and Sanitation Rates are also included as part of the consolidated fee schedule.
 
Although not specifically called out in our fee table it is the City’s intent to not include sales taxes and other government pass through fees as part of the adopted fee in most cases.  Currently there is a mixture of rates which include tax and some that do not.  Unless specifically called out in the attached schedule the adopted fees do not include taxes or other government fees.
 
The Fee schedule attached reflects the final proposed rate schedule by staff and all modifications to the schedule are highlighted throughout document.  Wastewater and Sanitation increases have been adjusted down per the discussion at the council work sessions held on May 16 and the work session and public hearing held June 6, 2016.  All other items remain unchanged from the original proposal which was posted to our website in accordance with state law.
 
The FY2017 budget has been prepared utilizing the fee amounts included in this consolidated rate table. Modifications to any specific fee or rate may have a direct impact on revenue collections and the provision of a particular service
Council may consider any combination of rate adjustments that are at or below the amount proposed in the attached fee schedule. Revenue requirements will not change and any change to the rates charged have a direct impact on the amount of funds available to perform each service.

Mayor Jackson called for public hearing to allow comments on this matter.
 

George W. Anderson, Jr of 1696 E. Elegante Drive, Casa Grande AZ 85122 provided the City Council information regarding his income, expenses and comparison of utility increases. Mr. Anderson expressed opposition to the City’s Sanitation proposed fee increase.  Further, Mr. Anderson suggested for Staff to provide a hard copy of the slide presentation for review by citizens attending the public hearing.
 
Hank Treadwell, 34180 W. Macho Road, Stanfield AZ 85172 offered comments concerning the water (Copper Mountain Ranch) lead/contaminated problem at their subdivision.
 
Mayor Jackson requested for Public Works Director Louis and Deputy City Manager to follow up with Mr. Treadwell.
 
In response to Mayor Jackson, Director Louis conveyed that the Copper Mountain Ranch Public Water System is owned and operated by the City of Casa Grande.  This system contains Nitrate levels in exceedance of the permitted levels for drinking water.  This exceedance has resulted in the City entering into a Consent Order with the Arizona Department of Environmental Quality (ADEQ) regarding this issue. The agreement requires that a treatment system be installed to reduce the level of nitrates contained in the drinking water distributed in the system.
 
Further, Director Louis explained that nitrate in the water is very hard for the body to breakdown so they can build up in the body which typically impacts the infants and elderly more than anyone else.  It is safe and not harmful with body contact, unless the water is consumed in a prolonged manner.  This is when there are certain health issues.  Notices were sent that identified and conveyed to the customers what they can and can’t do. 
 
Additionally, Public Works Director Louis explained that upon conducting water samples at each residence a lead exceedance in several of the samples were identified. City Staff is currently following the entire increased testing requirements to go through the process of determining where and if we have any lead issues. Further, Director Louis confirmed that the City water source does not have lead exceedances. Staff believes it was a sampling error and it was not a lead pipe issue; however, Staff has to go through the entire process no matter what, due to initial exceedances which the process could take about 2 years. 
 
Peter Redwine, 1940 N. Hubbard Lane, Casa Grande AZ 85122 asked about the Copper Mountain Ranch Water System and expressed his concern on the 10% increase on water rates.
 
In response to Mr. Redwine, Director Louis conveyed guessing that the lifespan of water treatment system would be from 10+ years if not more than that and it really depends on how the City maintains that system.
 
The Mayor and Council concurred with Mr. Redwine’s comment that City has considered several options such as co-operative or selling the Copper Mountain Ranch Water System.
 
Mr. Redwine offered some of the health side effect of high nitrate levels in the water such as increase in birth defects, miscarriages and babies that are six months old or less are likely to have blue baby syndrome due to lack of intestinal ph to compensate for higher nitrate levels.
 
Margarite Garvey of 1818 N. Richmond Place, Casa Grande AZ 85122 expressed her concern that she and her husband may not have enough money to pay the bills and is worried about the City’s proposed rate fee increases.
 
Council Member Powell conveyed that there is also a recommendation of 15% fee increase on Airport T-Hangars and announced that this is the appropriate time should anybody from audience wish to offer comments.
 
John McGuire of 941 E. Penny Lane, Casa Grande, AZ 85122 expressed appreciation to Mayor Jackson for conducting another public hearing tonight for citizens to offer comments on the City’s proposed rate increases.  Mr. McGuire conveyed that he is very active in social media and heard lots of complaints about the proposed rate increases; however, there’s only three (3) people that came up to speak tonight to express their dissatisfaction.  Further, Mr. McGuire added that he understands the complexity of the issue and hoped that Council will take time to offer explanation to the citizens why the fees have gone up as much as they have or as quickly as they have – nobody likes this, he surely does not like it, but expressed that he understands that Council has other obligations. 
 
Additionally, Mr. McGuire conveyed making sure people understand that if the City has some better than anticipated growth, future increases may not be projected to be at this point.  The important thing to remember is that City Council has to play it on both sides.
 
Council Member Kortsen suggested that Staff for the benefit of the citizens to provide hard copies of the information on numbers with regards to what it’s costing the City and how the City is going to pay it so that the citizens can better understand the proposed increases.
 
Donald Domeyer of 9792 Bradshaw Drive, Arizona City, AZ 85123 and a member of the City of Casa Grande Airport Advisory Board expressed his concern that the 15% rate increase for the Airport T-Hangars is too high and suggested considering a 5% increase instead.  Mr. Domeyer also suggested for council to consider charging other users (private people who have hangars at the airport) 5% user fee.
 
In response to Mr. Domeyer, Mayor Jackson conveyed that most of the private people that have hangars at the airport pay a land lease on a monthly basis.
 
Mr. Domeyer also offered his concern on the maintenance of the hangars.
 
Autry Warren of 33841 W. Siesta, Stanfield AZ 85172 reported that no one has contacted her since the last meeting about her concerns on lead/contaminated problem in the water supply at her subdivision.
 
In response to Ms. Warren, Director Louis conveyed that Terrence McKeon, Deputy Public Works Director is most knowledgeable of the issue at the Copper Mountain Ranch water system and Mr. McKeon will be contacting her.
 
Nat Smith of 9th Olive Avenue, Casa Grande AZ 85122 offered comments regarding the Copper Mountain Ranch water system and suggested for the City to consult with Arizona Water Company to help resolve the nitrate issues.  
 
There being no further comments, Mayor Jackson declared the public hearing closed.
 
DISCUSSION
 
Council Member Powell addressed the situation of Airport T-Hangars.  The City owns and leases the T-Hangars and as a landlord it is the City’s responsibility to maintain the hangars in good working conditions which is not the case based on the comments of the tenants/users. Council Member Powell suggested that the City Council needs to concentrate on trying to get the T-Hangars back in shape. 
 
Council Member Powell conveyed that the proposed 15% increase in fee for the hangars was approved and recommended by the Airport Advisory Board to the City Council without proper representation and input of the actual people renting the hangars.
 
In response to Council Member Powell, Director Louis explained that Staff conducted the analysis, presented the proposed 15% increase in fees for airport hangars and recommended for consideration to the Airport Advisory Board. The Board’s approval of was then utilized to support Staff’s changes in the Consolidated Fee Schedule.
 
In response to Council Member Powell, Deputy City Manager Rains conveyed that the number one revenue stream that the airport generates from is the sale of jet fuel with the T-Hangar rentals are likely the second contributor.
 
Council Member Powell suggested a 7% increase in fee of the Airport T-Hangar for FY2017 instead of 15% increase.   The 7% would produce about $9,500 per year that will be earmarked solely for the repair and maintenance of the T-Hangars.
 
In response to Council Member Fitzgibbons, Director Louis conveyed that Staff generally knows the lists of things that need to be taken care of with regards to the T-Hangars; additionally, Staff is currently in the process of conducting a survey of each tenant to identify what their priority needs are, such as rating each item that needs to be addressed and thereby giving the tenants option to provide any other feedback they might have. The information will be utilized to help identify what are those priorities and how best to tackle them once the revenue stream is identified.
 
In response to Council Member Powell, Director Louis conveyed that the fee increase is meant to focus on maintenance of T-Hangars including the overhead cost for managing the operation.
 
Council Member Powell asked why the overhead cost for managing the operation will be assessed to the T-Hangar tenants.  There should be a 5% fee across the airport where everybody pays.  The T-Hangar tenants shouldn’t have to pay the price for bringing the hangars back into the type of repair that should have been kept up.
 
Council Member Fitzgibbons asked for clarification if the money will go toward the repairs of the hangars and what is the actual estimate to get those hangars up to the standard where it needs to be.
 
In response to Council Member Fitzgibbons, Director Louis conveyed that the repairs would cost far over $20,000 to start.  The airport rates have not been increase in quite a while.
 
In response to Council Member Kortsen, Director Louis conveyed that some hangar users are in a long term lease agreement. According to the term of their land lease agreement their fee increases every five years. 
 
Further, Director Louis stated that there is another driving force behind trying to keep our rates with in the market and that is the requirement of our grant requirement with the federal government.  We have to make sure that our prices are fair market value – competing with other airports.  We can’t underprice something because then we won’t be able to support the airport.
 
In response to Council Member Kortsen, Director Louis conveyed that Staff is trying to establish rates that are competitive in the marketplace and Staff believes even with the 15% increase we are still going to be very competitive in the hangar market place.
 
In response to Council Member Varela, Director Louis believes that the last airport fee increase was held in 2010 for the large hangars only and the 2007 increase was for the small hangars.
Director Louis apologized to Council Member Varela for not having the information regarding the percentage of hangar users that are from out of town. 
 
Council Member Herman announced given the 15% increase in fee which is $400 per hangar to do repairs which is not a lot to work on each hangar.  He liked that the funds will be dedicated solely to fix the hangars. 
 
Council Member Herman suggested conducting council study session in the future to learn more about the condition and needed repairs of the hangars.
 
Mayor Jackson shared the concern he received that the $9,000 funding per year would not be enough to even fix two (2) hangars.  Further, Mayor Jackson concurred with Council Member Powell’s concern that the City needs to maintain the hangars, but asked where the money is going to come from.  
 
Mayor Jackson explained that at the end of the day, we try to move the airport to the same status the council did with the golf course; however, this will take a while.  It is unfortunate that the City is in this situation where we have to make improvements but we don’t have the money to do it.  The challenge would be if council doesn’t want to do this as part of the fee increase but committed to fixing the hangars, council will need to find some money in the general fund.
 
Deputy City Manager Rains announced that Council’s concerns are well taken and suggested conducting a study session at the next council meeting rather than looking at the fees or the maintenance component. Staff will provide the City Council financial overviews that will summarize what revenue stream there are in the airport and also review the expenses.
 
In response to Mayor Jackson, Deputy City Manager Rains conveyed that there is a 60-day notice requirement for any new fee that the City will impose; however, nothing will preclude the city council should they decide to either proceed with the 5% or 0% increase for the airport t-hangars.
 
Council Member Powell reiterated that he felt that council let the people down with regards to t-hangar users.  $164,000 in revenue generated from 40 large t-hangar, 12 small t-hangars and 18 t-shade hangars that are not being increased; with this revenue we can’t find room to allocate maintenance for the hangars.  Further, Council Member Powell stated that money was spent to improve the lounge area to look better which is the second major source of revenue; t-hangar tenants were let down by not conducting the repair and maintenance of their hangars.
 
Mayor Pro Tempore Montoya suggested having an equal type of user fee for everybody. Further, Mayor Pro Tempore Montoya conveyed that it is not fair comparing our airport to other municipal airports (Phoenix Deer Valley) that receives other sources of funds. The City of Casa Grande has not raised the fee in over 5 to10 years.  He is also glad to know that Director Louis has a plan justifying should the fee go up there will be a plan for the money to be utilized for maintaining the hangars.  It should be acknowledge that the City has done some repairs based on the available limited funds; it’s not fair to say that nothing was done.
 
Council Member Powell expressed that when the City Council is looking for money, we paid $8 Million to $9 Million in five years for the Francisco Grande Sports World; and now we are worried about where are we going to get $20,000 to $30,000 to help fix the airport t-hangars.  Really, where is the council’s priority?
 
Mayor Jackson requested having the information on the magnitude of the repairs that need to be completed to better understand the problem.
 
Council Member Kortsen announced that this is the council’s opportunity to review the issues and start looking at the problem from different sides.  It is crucial to know and obtain from each owner the list of repairs that needs to be done and place the cost for each item; that way council will be able to determine the percentage for the increase in fees.
 
             
  L.2   
Public Hearing Regarding the Final Budget for Fiscal Year 2016-2017
and for the Property Tax Levy for the City of Casa Grande
for the Fiscal Year Ending June 30, 2017


Accounting Manager Morris recommended that Mayor and Council hold a public hearing on the FY2017 final budget and for the property tax levy for the City of Casa Grande, AZ.

Mrs. Morris reported that on June 6th the Mayor and Council adopted the tentative budget. As required by statute that budget was published twice in the local paper and a public hearing is to be held tonight. The final budget of $174,235,700 has not changed from the adopted tentative budget.
 
The final budget represents all information that has been presented to the council to date. Following tonight's public hearing on this budget and the proposed primary and secondary tax levies, Council will be asked to approve this budget as the final budget for the City of Casa Grande for the year ending June 30, 2017 in a special meeting scheduled immediately after the regular council meeting.
 
Although the budget will be adopted at the Special Meeting, the property tax levy is only set for a public hearing tonight. The Council will be asked to adopt the Property Tax Levy at the July 5th Council meeting.

Adoption of the Budget establishes the spending plan for the following fiscal year. No expenditure of funds may take place that is not in conformance with the adopted budget.
  
Mayor Jackson called for public hearing to allow comments on this matter. There being no comments, Mayor Jackson declared the public hearing closed.
 

Mayor Jackson announced that the City Council will consider at the July 5th meeting the adoption of the City’s Budget and Consolidated Fee Schedule, including Water, Wastewater and Sanitation for Fiscal Year 2016-2017.
 
             
M.   Executive Session:

None
 
             
N.   Reports

Mayor Pro Tempore Montoya thanked the citizens that are in attendance and those that offered comments on the public hearing for the consolidated fee schedule.

Council Member Powell reported on the following:
  • Addressed the concern with the proposed sub-lease at Francisco Grande Sports World and suggested that it has to be reviewed and approved by the City Council to determine which is right and wrong with the agreement thereafter, City Manager Larry Rains signs the agreement.
  • Expressed the urgent need of getting a new Deputy City Manager to assist City Manager Rains.
Mayor Jackson announced that City Manager Rains is moving forward with the process of recruiting for Deputy City Manager, Finance Director and Community Services Director.

Council Member Kortsen reported on the following:
  • Expressed thoughts for the citizens of Show Low and Pinetop-Lakeside experiencing wildfires and expected evacuations.
  • Requested to Staff to revisit emergency responses for people hiking Casa Grande Mountain.
  • Extended condolences with the loss of Council Member Fitzgibbons’ mother.
Council Member Herman reported the following:
  • Thanked the citizens that attended tonight’s meeting.
  • Expressed appreciation to those who offered their comments on the wastewater and sewer and explained that those comments don’t fall on deaf ears.
Council Member Fitzgibbons reported the following:
  • Thanked the citizens that are in attendance and those that offered comments during the public hearing for the consolidated fee schedule.
  • Explained that the proposed increase for the rates started a lot higher; council reevaluated and staff worked hard to bring the rates lower.
  • Thanked the overwhelming support from the community and friends going through the loss of a family member. Expressed appreciation to J. Warren Funeral and Saint Anthony Catholic Church for their services.
  • Wished everyone a safe Fourth of July celebration.
Council Member Varela reported the following:
  • Thanked the citizens that are in attendance and those that offered comments during the public hearing for the consolidated fee schedule.Explained that council already reduced the proposed rate to a reduced fair amount.
  • Attended the Chamber of Commerce breakfast; expressed appreciation to the Chamber of Commerce for being proactive about the jobs for the community and survival techniques for local businesses.
  • Announced the National Week of Making - the Main City Library will be asking patrons to participate in decorating the American Flag by adding their hand prints.The activity will run through June 24 and the flag will be on display through July 4th.
Mayor Jackson reported the following:
  • Attended the career camp held at the Junior High School and briefly explained the event.
  • Encouraged the City Council to participate in the future career camp program.
 
             
O.   Adjournment

There being no further business at this time, the meeting adjourned at 9:09 p.m.
 
 


Robert M. Jackson
/s/Robert M. Jackson
Mayor

ATTEST:


 
 
Remilie S. Miller
 /s/Remilie S. Miller, MMC
City Clerk
 
 
 
CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of Casa Grande, Arizona held on the 20th day of June, 2016. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 5th day of July, 2016



Remilie S. Miller
/s/Remilie S. Miller, MMC
City Clerk

    

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