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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, AUGUST 7, 2017
 
             
A.   Call to Order
Mayor McFarland called meeting to order at 7:00 p.m.
 
             
  Invocation
Offered by Pastor Paul Elgin from the First Presbyterian Church.
 
             
  Pledge of Allegiance
Led by Mayor Pro Tempore Ralph Varela
 
             
B.   Roll Call
 
Present:
Donna McBride, Council Member  
 
Lisa Fitzgibbons, Council Member  
 
Matthew Herman, Council Member  
 
Mary Kortsen, Council Member  
 
Dick Powell, Council Member  
 
Ralph Varela, Mayor Pro Tempore  
 
Craig McFarland, Mayor  
Also Present:
Larry Rains, City Manager
Steven Weaver , Deputy City Manager
Brett Wallace, City Attorney
Celina Morris, Finance Director
Gloria Leija, City Clerk
Scott Miller, Fire Chief
Dawn Jett, Human Resources Director
Kevin Louis, Public Works Director
Terrence McKeon, Deputy Public Works Director
Steve Hardesty, Community Services Director
Joseph Jett, Airport Manager
             
C.   Minutes
Moved by Council Member Powell, seconded by Council Member Kortsen to approve City Council minutes of July 17, 2017, and City Council Special minutes of July 17, 2017. The motion carried with a 7-0 voice vote.
 
             
D.   Claims
Moved by Council Member Fitzgibbons, seconded by Mayor Pro Tempore Varela to approve the claims dated June 15 and August 1, 2017. The motion carried with a 7-0 voice vote.
 
             
E.   Meeting Agenda Approval
Moved by Council Member Kortsen, seconded by Council Member Fitzgibbons to approve the Meeting Agenda, with the following changes:
  • Executive session to follow agenda item "N"
The motion carried with a 7-0 voice vote.
 
             
F.   Special Presentations  
             
G.   Consent Agenda
All items listed with an asterisk (*) are considered routine matters and will be enacted by one motion and one roll call vote of the Council. There will be no separate discussion of these items unless a Council Member or member of the public so requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence of the agenda.
 
  Moved by Council Member Mary Kortsen, seconded by Council Member Lisa Fitzgibbons to approve the Consent Agenda for items G1, G2, G3, G4, G5, G6, G7, G8, G9, G10, G11 and G12.  The motion carried with a 7-0 voice vote
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland then declared that all items in these minutes identified by an asterisk (*) preceding the title of that item were passed and adopted.
             
  *G.1   
Final Adoption of Ordinance No. 3021
Accepting a Bid From Motorola Solutions, Inc. for the Purchase of Eighteen (18) All-Band Portable Radios

 
  By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3021 accepting a bid from Motorola Solutions, Inc. for the purchase of eighteen (18) all-band portable radios; authorizing the expenditure of public funds in an amount not to exceed $174,904.68; and authorizing execution of a contract with, or purchase order to, Motorola Solutions, Inc. In accordance with the terms submitted to the Arizona State Bid List.
             
  *G.2   
Final Adoption of Ordinance No. 3022
Accepting a Bid From Pierce Manufacturing, Inc. for the Purchase of a 2018 Pierce Quantum Pumper

 
  By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3022 accepting a bid from Pierce Manufacturing, Inc. For the purchase of a 2018 Pierce Quantum Pumper; authorizing the expenditure of public funds in an amount not to exceed $736,713.68; and authorizing execution of a contract with, or purchase order to, Pierce Manufacturing, Inc.
             
  *G.3   
Final Adoption of  Ordinance No. 3023
Accepting the Sole Source Provider Offer from Empire Machinery to Provide Re-Tipping of Four (4) Compactor Wheels

 
  By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3023 accepting the sole source provider offer from Empire Machinery to provide re-tipping of four (4) Compactor Wheels; authorizing expenditure of public funds in an amount not to exceed $58,000.00; and authorizing the execution of a contract.
             
  *G.4   
Final Adoption of  Ordinance No. 3024
Authorizing the Acquisition of Rights-Of-Way and Temporary Construction Easements Along Mission Parkway and Cottonwood Lane East of Interstate 10

 
  By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3024 authorizing the Acquisition of Rights-Of-Way and temporary construction easements along Mission Parkway and Cottonwood Lane East of Interstate 10; and authorizing execution of Acquisition Documentation by the City Manager.
             
  *G.5   
Accepting the Fourth Quarter FY 2016/2017 Report for Access Arizona, Public Service Organization
 
  By a 7-0 roll call vote under the Consent Agenda, Council accepted the Fourth Quarter FY 2016/2017 report for Access Arizona, Public Service Organization.
             
  *G.6   
Accepting the Fourth Quarter and Annual Report for FY 2016/2017 from the Boys and Girls Club of the Casa Grande Valley, Public Service Organization
 
  BY a 7-0 roll call vote under the Consent Agenda, Council accepted the Fourth Quarter and Annual Report for FY 2016/2017 from the Boys and Girls Club of the Casa Grande Valley, Public Service Organization
             
  *G.7   
Consider Ordinance No. 3025
Designating Henry & Horne, L.L.P. as the City’s Independent Certified Public Accountants for FY 2017-2018

 
  Celina Morris, Finance Director, recommended in her Council routing form that the City Council designate Henry and Horne, LLP as the City's Independent Certified Public Accounting firm for the FY17 Financial Statement Audit by approving the engagement letter and estimated fees in the amount of $71,000, along with a City-controlled contingency of $10,000 in accordance with the City's procurement policy.  

Arizona Revised Statute, Title 9, Chapter 4, Article 9-481 requires each incorporated city to engage a certified public accountant to perform a financial statement audit. As required by statute, the audit shall include all of the accounts and funds of the city, including operating, special, utility, debt, trust, pension and all other money or property for which we are responsible. The audits must be made in accordance with generally accepted auditing standards, and the audit report must be issued in conformity with generally accepted municipal accounting principles.

In accordance with ARS, the audit report shall include:
- Accountant's opinion with respect to the financial statements
- Determination as to whether highway user revenue fund monies received by the city, and any other dedicates state transportation revenues, are being used solely for the authorized transportation purposes

In addition to the items stated above, the following additional information is subjected to audit procedures:
 - Schedule of expenditures of federal awards
- Annual expenditure limitation report
- Combining Funds Financial Statements and Budgetary Comparison of the Comprehensive Annual Financial Report
- Other Supplementary Information of the Comprehensive Annual Financial Report
- ADEQ Report
 
The audit objective is the expression of opinions as to whether the City's Financial Statements are fairly presented, in all material respects, in conformity with the U.S. generally accepted accounting principles and to report on the fairness of the supplementary information.
 
The objective also includes reporting on:
 
- Internal control related to the financial statements and compliance with provisions of laws, regulations, contracts and grant agreement, where noncompliance would have a material effect on the financial statements in accordance with Government Auditing Standards
- Internal control related to major programs and an opinion on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Office of Management and Budget (OMB) “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule”  which was made effective December 26th, 2014
 
The audit will be performed in accordance with U.S. generally accepted auditing standards, the standards for financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States, and the OMB Uniform Guidance.

Funding for the FY2017 Audit is included in the Finance Department's FY2018 budget.

By a 7-0 roll call vote under the Consent Agenda, Council passed to a second reading Ordinance No. 3025.
 
             
  *G.8   
Consider Ordinance No. 3026
Conditionally Accepting Dedication of Public Right-Of-Ways and Easements for Utilities from CG 280 L.L.C. Casa Grande 25 Investments, L.L.C. and Casa Grande Industrial Corporation

 
  Paul Tice, Planning and Development Director, recommended in his Council rouging form that the Mayor and the City Council approve the proposed Map of Dedication. See Exhibit ‘A’ Map of Dedication Plans and Exhibit ‘B’ Legal Description attached.

As per development agreement between the City of Casa Grande and  CG 280 CAZCP, LLC, dedication of right of way was required for portions of N. Burris Road, S. Burris Road, W. Peters Road and W. Selma Highway.

Accordingly, the CG 280 CAZCP, LLC is dedicating the 70 ft. of right of ways along a portion of S. Burris Road and W. Selma Highway which is half of the ultimate 140 ft. right of way needed for Principal Arterial Road. Also, CG 280 CAZCP, LLC is dedicating 55 ft. of right of way along a portion of W. Peters Road which is half of the 110 ft. of right of way and is classified as Minor Arterial Road. CG 280 CAZCP, LLC is dedicating 17 ft. right of way along a portion of N. Burris Road, north of the Peters Rd. intersection. This right of way dedication is less than the 70 ft. from centerline which is typically required along Principal Arterials, this modification of right of way dedication is necessary due to the existence of a San Carlos (SCIP) irrigation canal  that is  located on  the western border of the CAZCP property in this area. The purported SCIP canal easement is 55 ft. wide and the western edge is located approximately 17.5 ft. from the section line. This canal is too large to relocate and in accordance with SCIP requirements cannot be located with public street right of way.

The dedication of the section of the Burris Rd. right of way south of the Tractor Supply Distribution Center as well as the dedication of the Selma Highway right of way is adjacent to the proposed Lucid manufacturing facility site and is crucial to allow the roadway improvements that are needed for that development.

Dedication of these Right of Ways will eliminate the need to purchase the right of way to accommodate the future expansion of Burris Road, Peters Road and Selma Highway.

By a 7-0 roll call vote under the Consent Agenda, Council passed to a second reading Ordinance No. 3026. 
             
  *G.9   
Consider Ordinance No. 3027
Conditionally Accepting Dedication of Public Right-Of-Ways and Easements for Utilities From NCP Casa Grande, LLC

 
  Paul Tice, Planning and Development Director, recommended in his Council routing form that the Mayor and the City Council approve the proposed Map of Dedication. See Exhibit 'A' Map of Dedication Plan and Exhibit 'B' Legal Description attached.

LKQ Casa Grande intends to construct an automotive recycling facility with storage yard which includes site work improvements and off-site improvements on a site containing approximately 125 acres located in the northwest corner of Thornton and Peters Roads. The City Code requires that new development that results in additional traffic, dedicate right of way to adjacent streets in case where the existing right of way does not meet the City standards.

Accordingly, NCP Casa Grande, LLC, the current owner of the site, is dedicating the 55 ft. of right of way along a portion of Peters Road and Thornton road, which is one-half of the ultimate 110 ft. of right of way needed for a minor arterial roadway.

Dedication of these right of ways will eliminate the need to purchase the right of way to accommodate the future expansion of Thornton Road and Peters Road.

By 7-0 roll call vote under the Consent Agenda, Council passed to a second reading Ordinance No. 3027.
             
  *G.10   
Resolution No. 5063
Approving a Re-Subdivision of Lots 1 and 2 of the Casa Grande Vista Subdivision through Amendment to the Final Plat

 
  Paul Tice, Planning and Development Director, reported in his Council routing form that the Planning and Zoning Commission voted unanimously to approve the preliminary plat DSA-17-00024 for Jack in the Box Cottonwood-Pinal subdivision at its April 6, 2017 public hearing. Therefore, staff recommends approval of the final plat.   

An approved subdivision known as Casa Grande Vista is located at the southeast corner of Cottonwood Ln. and Pinal Ave.   This request is to replat a portion of this subdivision into two lots:  Lot 1 is 34,485 sq. ft. to accommodate the Jack In the Box currently under construction and  Lot 2 is 33,067 sq. ft., this lot is located immediately to the south of lot 1 and is reserved for future commercial development.  Due to the fact the these two lots will share access and parking, a cross parking and access easement will be established per the CCR's.  The lot sizes and their vehicular and utility access have been evaluated and determined to be adequate for development. Jack in the Box has been approved through a Major Site Plan consideration by Planning Commission.  Development of Lot 2 would require the same in the future when a specific development is proposed to be located there. There is an existing 20 ft.-wide  City alley immediately to the east of the two lots that will be improved with the development of the two lots, used to access to Cottonwood Ln.  The reason this has been retained as an alley is due to the fact that the sewer main line runs in this area which is required to be in an alley or a dedicated unencumbered sewer easement.  This alley will continue to be extended to the south as areas further to the south develops. As a condition of approval associated with the development for Jack-in-the Box, this alley is to be improved with a greater-than-normal asphalt thickness to allay City maintenance expenses.

By a 7-0 roll call vote under the Consent Agenda Council passed and adopted Resolution No. 5063.
             
  *G.11   
Resolution No. 5064
Approving a Re-Subdivision of Thornton Industrial Park Unit 1, Lots 3 Through 6, Through Amendment to the Final Plat

 
  Paul Tice, Planning and Development Director, reported in his Council Routing form that The Planning Commission approved the preliminary-plat for this proposed re-plat on July 6th, 2017.  Therefore staff recommends that City Council approve DSA-17-00076, the re-subdivision final plat to combine four lots into one lot at 1070 W Gila Bend Highway.

The plat request is to combine four lots into one for a future Southwest Gas office and maintenance location.  The site is located at 1070 West Gila Bend Highway. For a more detailed discussion regarding this request please see the attached Planning Commission Staff Report.  

By a 7-0 roll call vote under the Consent Agenda Council passed and adopted Resolution No. 5064.
             
  *G.12   
Resolution No. 5065
Approving a Re-Subdivision of Lots 1 and 2 of Palm Parke Industrial Park – Unit One Through Amendment to the Final Plat

 
  Paul Tice, Planning and Development Director, reported in his Council Routing form that the Planning Commission approved the preliminary-plat for this re-plat on July 6, 2017.  Therefore staff recommends that City Council approve DSA-17-00069, the re-subdivision final plat to split one lot into two lots at 2016 North Pinal Avenue.  

The plat request is to split one lot into two separate lots.  The site is located at 2016 North Pinal Avenue.

By a 7-0 roll call vote under the Consent Agenda Council passed and adopted Resolution No. 5065.
             
H.   Public Comments  
  Bill Thompson, 1511 E. Florence Blvd., expressed his opposition to the proposed City of Casa Grande Consolidated Fee Schedule, relating to the increase of T-hangar fees.  He voiced that he would challenge the information presented during the study session relating to the T-hangar fees.
 
There are approximately 95% of the airports in this Country that are subsidized by their City, because cities realize that airports are an asset to their communities. Many of the T-hangar renters and himself are opposed to the proposed T-hangar increases.  He feel that a 15% increase is excessive for a single year.  They highly oppose the increase because there is no justification for the proposed increase.  A comparison to other airports, Scottsdale, Eloy, etc., shows that Casa Grande T-hangar fees are higher.  With a combined hangar rental fees and FAA grants hangars, the revenue for the airport is over $300,000 yearly.  It's his understanding that the T-hangars are debt free. He recapped that the T-hangars having maintenance and safety issues. None of the renters have seen a plan or schedule for improvements to the hangars and aprons.

Further, Mr. Thompson  noted that per the Southwest Building Services Offices of the Federal Aviation Administration (FAA) in Scottsdale, the City does not have any project requests on file, or a ten-year plan on file for the City.  FAA does not know why the City needs more money, because a  request for funding has not been filed with them.

Mr. Thompson recognized Terry McKeon, Deputy Public Works Director and Joe Jett, Airport Manager for meeting with the tenants.  He concluded by stating he believes that the renters already pay a fair rental fee and there appears to be adequate funding for airport improvements and maintenance. Therefore, in the absence of a plan and on behalf of the renters, he requested that Council postpone the proposed increase for the T-hangars rentals.

Don Domeyer, voiced that he lives in Arizona City, and is recurrently renting two hangars at the Casa Grande Airport.   He noted that there are 52 hangars at the Casa Grande Municipal Airport, which have three different sizes.  He demonstrated that many of the hangars that have been used for comparison are larger in square ft., because they are box hangars.  The City's hangars are T-hangars, with less square footage.  Further, he expressed opposition to the proposed T-hangars rental increase proposed in the City's Consolidated Fee Schedule, because a 15% increase in one year's too much.
             
I.   Award of Contracts  
             
  I.1   
Consider Ordinance No. 3028
Accepting the Proposal for Professional Services from Gravity Research, L.L.C. to Provide Project Management Consulting

 
  Steve Hardesty, Community Services Director, reported that Staff recommends the Mayor and Council to approve the contract with Gravity Research to provide consulting on the Community Recreation Center Project, and highlighted the below information.

Voters approved a bond measure in 2006 for the construction of a Community Recreation Center.  Many steps have been taken since to continue to develop this project including the selection of a Design-Build team, Haydon Building Corporation, who chose Architekton to partner in the design elements.   Recently, the City and the design team concluded stakeholders meetings, public outreach, and programming meetings to develop an approved schematic design.  The project is now entering into a very important period of the pre-construction phase with design development discussions.  Staff believes it is time to bring a consultant into the project to act in the City's best interests, help with the design and eventually monitor the construction phase. 

The City of Casa Grande has negotiated with Gravity Research, L.L.C., managed by Ted Hawkins, to provide overall project management services for this project.  Services will include consultation on the remaining planning, design, engineering and construction of the Community Recreation Center.  Ted has a depth of experience working with these type of projects and has a good track record of similar work with the City of Casa Grande, Haydon Building Corporation, and Architekton.

The contract for this engagement is the standard professional services agreement commonly used by the City of Casa Grande for these services.  The scope of services for this contract has been documented by the proposal submitted by Gravity Research, L.L.C.  Staff has elected to recommend that an agreement with Gravity Research is in the best interests of the City for several key reasons.  The principal of Gravity Research has vast knowledge of this project, extensive construction management skills, and experience with the City of Casa Grande's processes and standard building objectives. The City’s Purchasing Code 3.04.060 (D), allows for an exemptions from bidding requirements for professional services.  In addition, the cost of these services have been negotiated considerably less than industry standards, saving resources that can be invested into the facility itself.

The proposed fixed-price fee for this project is $100,000 per year, plus reimbursable costs.  Duration of this agreement shall cover services for Fiscal Year 2017-2018.  Continuance of this agreement into the next fiscal year will be at the City's discretion at a month-to-month rate of $8,333.33 per month, plus reimbursable costs.

Reimbursable costs include the following items;
1.  Mileage - Automobile mileage billed at $ 0.50 per mile only for travel outside of Casa Grande and not daily travel between the Gravity Research office and Casa Grande.
2.  Printing/Reproductions costs - Costs related to the reproduction of plans, specifications, and reports, as required, will be billed at cost

Discussion:

Council Member Powell voiced that he is familiar with Ted Hawkins' work with the City, and feels comfortable with having Mr. Hawkins provide the oversight for this project.

Council Member Fitzgibbons voiced that she also supports the contract with Mr. Hawkins.  Mr. Hawkins did an excellent job with the City.   She asked for clarification on Mr. Hawkins' role.

Responding to Council Member Fitzgibbons, Director Hardesty stated that it is very common to bring in a third party to provide the oversight for construction projects.  The process allows for a third party to protect the rights of the City and save resources over time.  The budget for the pre-construction phases is $1.6 million.  However, the guaranteed maximum price (GMP) has not been developed.  Mr. Hawkins will help to refine the GMP.

In response to Council Member Fitzgibbons, City Manager Rains voiced that Mr. Hawkins is a former employee.  He left the employment of the City over one year ago.  The City has not filled the position vacated by Mr. Hawkins, because the City has almost completed the construction project planned for the City.  The fee being charged by Mr. Hawkins is lower than the price the City believes could be obtained by going out in the market for the professional services.  Once this project is completed, Mr. Hawkins contract will be terminated.

Council Member Kortsen voiced that her previous experience with Mr. Hawkins has been positive.  She believes Mr. Hawkins will do a good job overseeing the Community Recreation Center Project.  Therefore, she support the contract with Mr. Hawkins.

Responding to Mayor Pro Tempore Varela, Director Hardesty stated that Mr. Hawkins will be responsible for managing the risk to the City during the construction of the Community Center.

Council Member Herman asked for clarification of the difference in cost to hire a city employee to oversee the project versus the proposed cost for hiring Mr. Hawkins through professional service contract. 

City Manager Rains stated that hiring a city employee, based on an annual salary, is much greater than $120,000.  Further, generally the budget for managing a construction project is 2-3% of the project cost.  Therefore, with this project budget of $16-17 million dollars, the budget for a consultant to oversee this project would be $250,000-$400,000.

City Clerk Leija read by title only Ordinance No. 3028, accepting the proposal for professional services from Gravity Research, L.L.C. to provide project management consulting; authorizing expenditure of public funds in an amount not to exceed $100,000.00 annually, plus costs; and authorizing the execution of a contract.
  Moved by Council Member Dick Powell, seconded by Council Member Matthew Herman to approve Ordinance No. 3028.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3028 passed to a second reading.
             
  I.2   
Consider Ordinance No. 3029
Accepting a Bid from O’Rielly Chevrolet, Inc. to Provide Four (4) 2017 Chevrolet Tahoe Vehicles

 
  Terrence McKeon, Deputy Public Works Director, noted that the prices for the Police Department's Tahoes and F150 Vehicles appear to be lower in price than in previous years.  The reason for the lower prices this year is due to the video recorder units not being included in this year price.

Police Chief McCrory stated that the department did not request the video recorder unit to be included the price of the vehicles, because the department has not made a decision on the type of recording system that will be used for this vehicles.

Deputy Public Works Director McKeon reviewed the below information.

This request proposes the purchase of four (4) 2017 model-year Chevrolet Tahoe Police Patrol SUV units. These units are to replace units that are scheduled for replacement in FY 18. Of the units to be purchased under this contract, three (3) are to replace Police Patrol Units, and one (1) is to replace a fire-department unit, the Assistant Chief’s vehicle. Each of these units has been reviewed and evaluated by staff from each Department, as well as the Fleet Services Division. Each has been determined to be appropriate for replacement based upon age, mileage, and cost of operation and maintenance. A formal solicitation was issued to obtain bids for the purchase of these vehicles. Fleet Services staff also reached out to local dealerships to make sure they were aware of the solicitation and the opportunity to bid. Two (2) bids were received in response to this solicitation. Of the bids received, the bid from O’Rielly Chevrolet, Inc. of Tucson was the lowest responsive and responsible bidder. Therefore, staff recommends award of this contract to this vendor. Under this bid the average pricing of each vehicle is $33,818, which is approximately $3,600 below the pricing available thorough cooperative use of the State contracts. Although none were received, this also provided an opportunity for local vendors to submit bid proposals.

Related to this action and if the purchase is approved, staff will be contracting with MHQ, Inc. for the upfit of the one (1) fire-department Tahoe in an amount of $12,900 using an existing City of Casa Grande contract, and is expected to utilize the remaining funds ($19,681) budgeted for this vehicle to provide for procurement and installation of additional components and equipment such as communications & technology components as well as painting and decals. Authorization of upfitting of the Police Department’s PPVs is being requested through a separate request for Council action item.

As the bid occurred prior to the beginning of the new fiscal year, the taxes quoted in the bid document do not reflect an increase of 0.5% adopted by the City of Tucson that was effective with the new fiscal year. Therefore the requested contract amount reflects the current tax rates. Of the units being replaced by vehicles purchased under this contract, three (3)vehicles are to be retained. Unit 2129 is to be retained for use by the recently added Police Aide position, as a new vehicle was not budgeted for the position. In the adopted budget two (2) additional fleet vehicles have been programmed for PD; it is intended that Unit 2123 be retained until those units are procured and ready for service, then be disposed of through auction. Unit 435 is to be retained to replace unit 438, which will be disposed of through auction, as will all other vehicles not being retained.

Funding of the total cost of the four (4) 2017 model-year Chevrolet Tahoe Police Patrol SUV units is available in the FY2018 budget.

Discussion:

Responding to Council, Deputy Public Works Director McKeon noted that an evaluation has been performed to determine if any of the existing equipment for the police vehicles can be reused.  Some of the equipment can be reused in the new vehicles.

In response to Council Member Herman, Chief McCrory stated that the Police Department is getting good useful life out of the F-250.  However, he noted this year the department elected to move down to the F-150.

Deputy Public Works Director McKeon responded to Mayor McFarland that Conrad Zapata, Fleet Manager, took a bid package to local dealers.  However, none submitted a bid.  One dealer reported to Mr. Zapata that they missed the deadline to submit the bid.

City Clerk Leija read by title only Ordinance No. 3029, accepting a bid from O’Rielly Chevrolet, Inc. to provide four (4) 2017 Chevrolet Tahoe vehicles; authorizing expenditure of public funds in an amount not to exceed $135,898.00; and authorizing the execution of a contract.
  Moved by Mayor Pro Tempore Ralph Varela, seconded by Council Member Dick Powell to approve Ordinance No. 3029.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3030 passed to a second reading.
             
  I.3   
Consider Ordinance No. 3030
Accepting a Bid from Tate’s Auto Center Holbrook to Provide Nine (9) Ford F-150 Pickups

 
  Terrence McKeon, Deputy Public Works Director, reported that Staff recommends the Mayor and City Council award a contract to Tate’s Auto Center in an amount not to exceed $272,015 for the Purchase of Nine (9) Model Year 2018 Ford F-150 Pickup Trucks, and highlighted the below information.

This request proposes the purchase of nine (9) 2018 model-year Ford F-150 Pickup Trucks. These units are to replace units scheduled for replacement in FY 18. Of the units to be purchased under this contract, seven (7) are to replace Police Department Units, and two (2) are to replace vehicles in the Public Works fleet. Of the PD units, two (2) are to be equipped with four-wheel-drive to meet the needs of the teams to which they will be assigned. Each of these units has been reviewed and evaluated by staff from each Department, as well as the Fleet Services Division. Each has been determined to be appropriate for replacement based upon age, mileage, as well as cost of operation and maintenance. A formal solicitation was issued to obtain bids for the purchase of these vehicles. Fleet Services staff also reached out to local dealerships to make sure they were aware of the solicitation and the opportunity to bid. Four (4) bids were received in response to this solicitation. Two (2) of the bids received were determined to be non-responsive as one did not acknowledge the addendum (Courtesy Chevrolet), and the other (O’Rielly) submitted Chevrolet units which were not considered to be an equal to the units specified, as the intent has been to standardize such vehicles on a Ford platform. Tate’s Auto Center submitted two (2) bids in response to this solicitation. Their secondary bid was not considered to be an equal to the units specified as the engine proposed is not as fuel efficient as what was specified. The main bid submitted by Tate’s was determined to be the lowest responsive and responsible bid, and the pricing determined to be reasonable for the current market. Therefore staff recommends award of this contract to this vendor for these nine (9) vehicles. Authorization of upfitting of the Police Department’s vehicles is being requested through a separate request for Council action item. Of the units being replaced by vehicles purchased under this contract, three (3)vehicles are to be retained. Unit 299 is to be retained for use by the Volunteer program, replacing unit 380 which was previously retained for this purpose. Unit 2135 is to be retained to be put into service under the new Commercial Vehicle Inspection program. In the adopted budget two (2) additional fleet vehicles have been programmed for PD; it is intended that Unit 2136 be retained until those units are procured and ready for service, then be disposed of through auction, as will the remaining vehicles not being retained.

Funding of the total cost of the seven (7) Ford F-150 pickups is available in the FY2018.

City Clerk Leija by title only Ordinance No. 3030, accepting a bid from Tate’s Auto Center Holbrook to provide nine (9) Ford F-150 Pickups; authorizing expenditure of public funds in an amount not to exceed $272,015.00; and authorizing the execution of a contract.
  Moved by Council Member Matthew Herman, seconded by Council Member Lisa Fitzgibbons to approve Ordinance No. 3030.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3030 passed to a second reading.
             
  I.4   
Consider Ordinance No. 3031
Accepting Bids from Various Vendors for the Installation of Up-Fit Equipment for Ten (10) 2017 Police Pursuit Vehicles

 
  Terrence McKeon, Deputy Public Works Director, recommended the Mayor and City Council authorize staff to execute contracts, or issue purchase orders, for the purchase of materials and services for the upfitting of ten (10) police vehicles, and authorizing funds for various contingent items. The total amount for which spending authority is being requested under this action is in an amount not to exceed $170,000.

Actions requesting authorization for the purchase of these vehicles have been submitted separately. Therefore, the intent of this action is, if Council approves the purchase of the vehicles, to obtain approval for items necessary to provide fully equipped patrol vehicles ready for service by the Police Department. This request is to provide for the procurement of communications equipment and upfitting, which includes safety equipment and the installation of all equipment. Although ten (10) vehicles are to be equipped, it should be noted that each requires a different combination of equipment and level upfitting as is appropriate for the tasks each vehicle is to perform and the teams which will utilize each vehicle.

Communications Equipment: This equipment consists of radios and associated equipment for direct audio communication with each unit. After thorough review of existing equipment, Staff has determined only one (1) of these vehicles can be equipped by reuse of existing equipment. Therefore nine (9) communications packages will need to be purchased for the remaining vehicles. Purchase of this equipment is proposed to be made through cooperative use of a State of Arizona purchasing contract currently awarded to Motorola Solutions. This is the same contract utilized for previous purchases, which has been extended to the vendor through November of this year. Under this contract, the average pricing for each unit is $6,996 with a total amount for this equipment of $62,964 for the nine (9) units.

Technology Equipment: This equipment consists of a portable-computer system consists of a rugged laptop computer and associated equipment such as modem and GPS antennas. Purchase of this equipment is proposed to be made through cooperative use of a City of Tucson purchasing contract currently awarded to Panasonic System Communications Company through their distributor, PCS Mobile. A total of six (6) units will require purchase and installation of technology equipment. Under this contract, the pricing for each unit is projected to be $6,030 for a total amount of $36,180 for this equipment.

Vehicle Up-fitting: This consists of providing all appurtenant equipment (e.g. lights, siren, push-bar, decals, etc.) as well as the installation of all of the communications and technology components. Staff intends to utilize the City’s existing contract no. 0316-11 currently held by MHQ of Arizona for this work. Utilizing this contract, a total of five (5) vehicles will receive appropriate equipping and upfitting in accordance with the contract for a total amount of $63,912.

Miscellaneous Equipment: In addition to the primary upfitting noted above, because not all vehicles require full upfit or equipping there are miscellaneous components which will be required to equip each vehicle for its intended purpose, and which may not be included in the upfit contract. The total estimated amount of these additional items is $14,750.  These items include: • Speed-radar equipment – five (5) at $1,590 each for a total of $7,950 • Decals – one set at $500 • Lighting Components – four (4) at $600 each for a total of $2,400 • Field Supervisor Toolbox – one (1) at $3,900.  Because these smaller items all fall below the threshold procurement amounts in the City Code and do not require formal City Council approval, the authorizing Ordinance does not address these smaller items.  Staff, however, included these items in the RCA for informational purposes so Council would understand the true total cost of the upfit process. 

Staff is also requesting that a City-controlled contingency of $6,944 (approximately 4.25%) above the contracted price of $163,056 be included in the authorization to address potential changes necessitated during the upfit process, to be used solely in accordance with the City's purchasing policy. 

City Clerk Leija read by title only Ordinance No.  3031,  Accepting Bids from Various Vendors for the Installation of Up-Fit Equipment for Ten (10) 2017 Police Pursuit Vehicles; Authorizing the Expenditure of Public Funds in a Total Amount Not to Exceed $170,000.00; and Authorizing Execution of Contracts With, or Purchase Orders to, Various Vendors
  Moved by Council Member Mary Kortsen, seconded by Council Member Lisa Fitzgibbons to adopt Ordinance No. 3031.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3031 passed to a second reading.
             
J.   Boards & Commissions  
             
K.   Ordinances, Resolutions, and Other matters or Subjects Requiring Action by the Council  
             
  K.1   
Consider Ordinance No. 3032
Tax Levy

 
  Celina Morris, Finance Director, recapped that on July 17th, the Mayor and Council held a public hearing on the FY2018 Final Budget and the primary and secondary tax levies contained in this action. Primary property taxes collected are used within the general fund for operational purposes and secondary property taxes are utilized to pay voter authorized general obligation bond debt. 

Based upon current assessed valuations, the proposed primary property tax rate of $0.9999 will raise a tax levy of approximately $3,511,000 and the secondary rate of $0.6010 will raise a tax levy of approximately $2,110,300.  It is the intent of the City that the property tax rates of $0.9999 and $0.6010 be adopted and that if any adjustments are required to be made by the county that they do so in the levy.

City Clerk Leija read by title only Ordinance no. 3032,  levying upon the assessed valuation of the property within the City of Casa Grande subject to taxation a certain sum upon each one hundred dollars of valuation sufficient to raise the amount estimated to be required in the annual budget, less the amount estimated to be received from fines, licenses and other sources of revenue; providing funds for various bond redemptions, for the purpose of paying interest upon bonded indebtedness; and providing a general fund for general municipal expenses; all for the fiscal year ending the 30th day of June, 2018.
  Moved by Council Member Lisa Fitzgibbons, seconded by Council Member Mary Kortsen to approve Ordinance No. 3032.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3032 passed to a second reading.
             
L.   Public Meetings, Public Hearings, Open Record Reviews, and Closed Record Reviews  
             
  L.1    Public Hearing and Consider Resolution No. 5066,  Adopting and Declaring as a Public Record that Certain Document Filed with the City Clerk and Entitled “City Consolidated Fee Schedule and Rate Schedule Effective October 1, 2017”; and Establishing an Effective Date  
  (Note, this item was discussed at a study session held prior to the Council meeting.)

Celina Morris, Finance Director, provided the below information in her Council routing form.

Since FY2005, Council has adopted a Consolidated Fee and Rate Schedule that incorporates all department and government functions.  The schedule is reviewed and amended, if necessary, by all applicable departments during the budget process.  The fee and rate schedule functions outside the Casa Grande Municipal Code but is incorporated by reference. 

Prior to consideration by Council, the Consolidated Fees were posted for more than 60 days on the City website as required by ARS 9-499.15 and a Notice of Intent related to Wastewater's proposed pretreatment fees was adopted by Council on June 5 as required by ARS 9-511.01.  Additionally, a supporting Wastewater cash flow forecast was posted to the City website and filed with the Clerk's office at least 30 days prior to this public hearing, the Notice of Intent adopted on June 5 was published in the paper and this public hearing was advertised at least 20 days prior, and a Notice of Intent related to the Consolidated Fee Schedule was posted to the City's website and social media at least 15 days prior to considering the adoption of the FY2018 Consolidated Fee Schedule.  

Fee and rate recommendations are based on cost recovery targets, cost of providing the service, and on market comparisons.  All proposed adjustments are designed to more closely recover costs of service while adhering to each program's cost recovery philosophy.  Some fees are set low to remove the barrier for compliance, such as dog licenses, and some fees attempt to recover 100% of costs such as adult recreation.  Departments and divisions with changes include: Airport, Animal Control, Community Services, Golf, Library, Parks, Fire, Planning & Development, Sanitation (landfill rates only), Wastewater (pretreatment and permit fees only), and Water (fees related to NSF items only).  Monthly Sanitation, Wastewater, and Water rates for residential and commercial customers were not amended.

Although not specifically called out in our fee schedule, it is the City's intent to not include sales taxes and other government pass through fees as part of the adopted fees in most cases.  Currently, there is a mixture of rates which both do and do not include taxes.  Unless specifically called out in the attached schedule, the adopted fees do not include taxes or other government fees. 

The fee schedule reflects the final Consolidated Fee Schedule for FY2017-2018 and all modifications and justifications to the FY2018 schedule are highlighted throughout the document.  Consolidate Fee Schedule is attached as Exhibit "A."

Discussion:

At this time, Mayor McFarland declared a public hearing to allow comments on the proposed Consolidated Fee Schedule.

John McGuire, stated that he understands that it's not easy for Council to adopt the Consolidated Fee Schedule, which includes new and increased fees.  However, he has confidence in the City Manager and Finance Director's recommendation to adopt the Consolidated Fee Schedule. He noted that he is not an expert on airport rates, but wishes the city was not a landlord. He supports consistency with City issues.  If previous years, the City could not begin the construction of the Community Center until it could be self sufficient. Therefore, he believes that the airport should also be self-sufficient and should not be subsidize.

 

There being no further comments, Mayor McFarland declared the public hearing closed.

Council Member Fitzgibbons voiced that it's not an easy task to approve a Fee Schedule.  However, the City is in a very challenging time; e.g., the City's tax collections are flat; citizens want the same level of services, etc.. She supports that the city should maintain the hangars.  But, she is concerned on how the City can provide the maintenance with the current revenues level. In order to approve a balance budget, the city had to cut items from the budget; e.g., body cameras, etc. She doesn't know how the City's general fund can provide the revenues to maintain and improve the airport.  She understands the need for a plan for the airport, which can show where the revenues are being used. However, she supports the need to increase T-hangars.  She hopes that people are shopping locally to help the City's collection of taxes. 

Council Member Herman voiced that the key part is to reinvest the dollars back into the airport.  He support the proposed T-hangar airport increases, because there have not been any increases for the past 9-years. 

Council Member Powell suggested that the 15% increase proposed for the T-hangars is acceptable, since the City Manager confirmed that the revenues generated from the increase will be used for the Airport.  However, he would recommend the 15% proposed increase be implemented over three years, because the money generated from the increase will not do anything to offset any kind of subsidy, and would be easier on the renters.  He noted that during the Study Session Council Members suggested making an adjustment  to animal fees.  Therefore, consideration should be given to modifying the proposed fees for T-hangar fees to be implemented over three years. 

Responding to Vice Mayor Varela, City Manager Rains offered the below scenario if the proposed T-hangar rental fees would be increased by 15% over a three year period:

  • Medium T- Hangar - With an increase over three years, the monthly rental fee would increase by  $9.00 per month (proposed at increase is at $34.00 per month).
  • Large T- Hangar - With an increase over three years, the monthly rental fee would increase by $11.00 for the first two years, and $12.00 the third year (proposed increase is at $27.00 per month).
Responding to Council Member Kortsen, City Manager Rains stated if the Council elects to spread the proposed 15% hangar rental increase over three years, Council would not be committed to keeping the same rate over three years, because Council has the opportunity to review rates annually and make modification to City fees.

Council Member Powell voiced that the 15% hangar rental increase in one year will not benefit the City's general fund.  Therefore, he believes it would be better to treat the renters better and implement the 15% increase over three years.

Council Member McBride expressed concern with the City not having an Airport plan.  She voiced that a plan is needed with a timeline.  The City has gone too long without making needed improvements.  Therefore, she believes the City needs the 15% increase in hangar fees to make improvements.  Otherwise, the City cannot make the needed improvements.

Joe Jett, Airport Manager, reported that there is $150,000 made available to the City yearly by Federal Aviation Administration which are called entitlement funds.  However, the City cannot just spend these funds, as the City may want.  The City needs to spend the funds in accordance to FAA regulations.  According to FAA documents the City can use the funds for hangar improvements, fuel, etc.  However, the City has to do everything else FAA decides before the City will be allowed to spend the funds for hangar improvements, fuel, etc. The City cannot use the FAA funds for generating fund projects, until all rehabs have been completed.  The City has submitted to the FAA the airport master drainage plan/study for their consideration.  If this is approved, then the City will proceed with submitting the airport master plan for funding consideration. The City's $150,00 allocation will be used for pavement rehab.  The City has approximately $2-4 million dollars in pavement improvement projects .  If the City uses any of the $150,000 for any revenue generating project, the City cannot apply for grant money, which funds the larger projects for three years. The City can elect to accumulate the $150,000 yearly entitlement money for four years or $600,000. The FAA has previously told the City they will not fund  a fueling system.

City Manager Rains stated that staff did ask FAA if they would fund the fuel system, but FAA denied the request.  Therefore, this year's 2018 budget includes funds for a fueling system, which will be funded from capital funds.

Responding to Council Member Powell, Mr. Jett reported the City has $450,000 in accumulated FAA entitlement funds.  The City has four years to use the funds.  The City will use the funds for the drainage study.  The next project will be the airport master plan, and the following project will be the pavement preservation.  If the City uses any of the $450,000 in accumulated FAA entitlement funds for a revenue generating project, then the City would not be able to apply for any grant funds for three years.  The City relies on FAA grants to fund large airport projects.

Further, responding to Council Member Herman, Mr. Jett stated that the City is working on resolving the flooding issue with the T-hangars.  This year he had three work orders for the T-hangars, and he has closed all three work orders.

City Clerk Leija read by title only Resolution No. 5066,  adopting and declaring as a public record that certain document filed with the City Clerk and entitled “City Consolidated Fee Schedule and Rate Schedule Effective October 1, 2017”; and establishing an effective date.

City Attorney Wallace clarified that he understands, from the study session, that Council would like to offer the below motion:
Approve Resolution No. 5066 as presented with the consolidated fee schedule, and with the below amendment to the consolidated fee schedule.

Animal Surrender
Owned Animal Surrender Unadoptable
-Feline, change proposed fee from $30.00 to $20.00
-Canine, change proposed fee from $60.00 to $40.00

Council Member Powell voiced that he doesn't believe reducing the animal fees will work for the City.  He does not believe that the animal surrender fees should not be reduced.  If these fees are changed, then the city will need to provide a subsidy, which he does not support.

Council Member Fitzgibbons voiced the animal surrender fee is a new fee.  She is concerned with charging any fee for surrendering an animal, because she is worried that the proposed fee would discourage people from dropping off animals. She doesn't feel the City is providing a subsidy for the animal services.

Council Member Kortsen voiced that City Attorney Wallace is correct with his understanding of the proposed motion desired by Council.
  Moved by Council Member Mary Kortsen, seconded by Council Member Lisa Fitzgibbons to approve approve Resolution No. 5066, as presented with the consolidated fee schedule, and with the below amendment to the consolidated fee schedule:

Animal Surrender
Owned Animal Surrender Unadoptable
-Feline, change proposed fee from $30.00 to $20.00
-Canine, change proposed fee from $60.00 to $40.00
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Resolution 5066 passed and adopted.

Council Member Powell voiced that he taught he would have the opportunity to amend the fee schedule relating to T-hangar fees.

City Attorney Wallace clarified that Council Member Powell could have offered an amendment, before the Council voted on the original motion with the change on the animal fees.  However, no amendment was offered and Council voted on the original motion.
             
M.   Executive Session:  
             
  M.1    A.R.S. §38-431.03.
 
Upon a public majority vote of the members constituting a quorum, a public body may hold an executive session but only for the following purposes:
 
3.  Discussion or consultation for legal advice with the city attorney or attorneys of the public body.
4.  Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation.
 
  • Discussion and Consultation Regarding a Proposed Development and Incentive Agreement with The Block Sports Company

Moved by Council Member Kortsen, seconded by Council Member Herman to hold an executive session as requested above. The motion was carried with a 7-0 voice vote.
 
             
N.   Reports  
  Council Members participated in offering the below reports:

Council Member McBride
  • Thanked everyone that has signed up for the Mayor's reading club.  She hopes to get more people to sign up to read to elementary students.
  • Thanked the many condolences she received on the death of her mother.
Council Member Herman
  • Reported that the Youth Commission had a great retreat this week with 16 students participating.  They held officer elections and planned their activities for the year.  The students will be participating in League's Youth session.
Council Member Powell
  • Reported that someone on Facebook has alleged that he is not in support of growth/anti-growth.  However, he wanted to state that the statement is false.  He has always supported quality growth that follows codes and standards, and benefits the community.  Since he has been on the Council, the community has grown by 30,000 people.  
Council Member Fitzgibbons
  • Reported that she attended the funeral of Rosa Bruce.  Ms. Bruce was a former city employee that worked as the Housing Manager. Ms. Bruce made a difference in community with the City's housing projects.
  • She is working with the Mayor and Council Member McBride on the health initiative.  They are meeting with other organizations to continue their discussions on the homeless and other issues.
  • Acknowledged the new website called "C.G.Rocks," which captures people painting rocks and placing the rocks in different locations.
Council Member Kortsen
  • Thanked everyone that attend the meeting to speak on the airport fees.
  • She is excited to move forward with the Community Center
  • Expressed her condolences to Ms. Bruce's family.  She voiced that Ms. Bruce had a positive influence on the City's housing project, which included homes with front porches.
Council Member Varela
  • Reported that he had the opportunity to visit the Casa Grande Veteran Center.  They have implemented a new project, whereby, they welcome new veterans into the community.
  • Expressed his condolences to Ms. Bruce's family.  He noted that Ms.Bruce was very passionate with the City housing program, and will be missed by the community.
Mayor McFarland
  • Reported that Tuesday, August 8, 207, Culver's Restaurant will donate $1.00 to the Boys and Girls Club for specific items sold.
  • Last week he met with JuDon, Economic Development Trade Director and others, who were guests of the Phoenix Mart. He was in Casa Grande to try to start a relationship with the Community.
  • He had he pleasure of presenting to the Youth Commission at their retreat.
  • Thanked Council Member McBride for assisting with recruiting members for the Mayor's reading club.
             
O.   Adjournment
Moved by Council Member Kortsen, seconded by Mayor Pro Tempore Varela, to adjourn the meeting at 9:10 p.m. The motion carried with 7-0 voice vote.
 
  ________________________
Craig H. McFarland
Mayor
ATTEST:


 
 
___________________________
Gloria Leija, 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 7th day of August 2017. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 21st day of August, 2017



_______________________________
Gloria Leija, MMC
City Clerk

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