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HomeMy WebLinkAboutManagement Records - Capital Improvement Plans (4) RESOLUTION NO. (R)96-16 A RESOLUTION OF THE TOWN OF ORO VALLEY, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK, WHICH ESTABLISHES T "TOWN OF ORO VALLEY CAPITAL IMPROVEMENTS PLAN, DATED FEBRUARY, 1996. BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY: WHEREAS, the Town Staff, Consultants and Technical Advisory Committee have met to review and recommend approval of the Capital Irrprovements Plan; WHEREAS, the Planning and Zoning Commission has held a public hearing, reviewed and recommended unanimously to support the plan; NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: That certain document, "The Town of Oro Valley Capital Improvements Plan", dated February, 1996, is hereby approved and declared to be a public record, of which three copies are on file in the office of the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley this 21st day of February , 1996. 0 r* 142„;--a4 __ •,(t_O-A.,,:-.0 - ' __<._ Cheryl S alsky, Mayor ATTEST: fr- il \ - ./ Kathryn truvelier, Town Clerk APPROVED AS TO FORM: -,---7----: // ' t Tobin Sidles, Town Attorney TOWN OF ORO VALLEY 1996/97 CAPITAL IMPROVEMENTS PLAN FEBRUARY, 1996 I. INTRODUCTION Providing infrastructure is a primary function of local government. Maintaining public safety, town services, parks and recreation facilities, an adequate transportation system, and the community's quality of life are all items heavily dependent on how the organization deals with infrastructure issues. The Town of Oro Valley is at a critical point in its development. Oro Valley is home to an established 19,587 residents, based on a mid-decade special census completed in November, 1995 (not yet finalized by the U.S. Census Bureau). The community has experienced a growth rate of 194% since the last census in 1990. This growth rate is due to annexation and tremendous development of single family homes. This type of dramatic growth makes it difficult for the Town to keep pace with necessary services and infrastructure. The community will continue short term rapid growth based on a strong residential housing market in the northwest Tucson area. The Town needs to ensure that there is orderly development and efficient use of public facilities. Oro Valley is faced with a serious dilemma in the provision of public services. Not only is the community being faced with new developments that require infrastructure improvements and public service, but the community is continually trying to catch up, particularly in the area of street improvements. The provision of public services to a growing community presents a great challenge to the Town of Oro Valley. As new developments are built, the infrastructure required to support these developments must be constructed to keep pace with the new demand for services. Determining the type, location, size, phasing, cost, and financing of infrastructure development requires a comprehensive and long-range planning perspective. The Town of Oro Valley is ultimately responsible for providing public service to existing residents and businesses as well as, the future residents, and businesses. The Town's rapid growth poses several complex and challenging issues: Police Protection - As citizens move to, or are annexed into the community, more officers and support staff will be needed. Along with this additional staff, equipment and vehicles will need to be purchased. It is anticipated that for each 1 .5 officers hired, a new police vehicle will need to be obtained. This is on top of the already expensive process of keeping the current fleet modern and in good, reliable working order. The newly constructed Police Department Facility should serve the needs of the department for many years to come provided that the department will be decentralized and sub-stations or store fronts will be constructed or leased. To the Town's credit, the current police building was constructed without any debt. Streets - There are in excess of 150 lane miles of public streets within the town limits. $20 million worth of asphalt must be maintained within the town. There is also a need to 1 improve the capacity of the major roads. The newly initiated development impact fee ordinance will help with future road improvements. Due to the high cost of these projects and the current budget constraints, these types of progressive financing vehicles must be utilized. According to the General Plan, there are $60 million of road improvements that need to be done by the year 2010. The CIP must address how we finance these improvements. Bike lanes and raised pavement markers must be considered when road improvement projects are considered. Town Hall/Staff Housing - Although the current Town Hall is new and one of the nicer in the State of Arizona, recent explosive growth has already caused some departments to become cramped. More staff will be needed to service the growing number of residents. The thought of having to build more administrative facilities before the existing buildings are paid off is not an attractive one. However, it may be essential if the Town is to maintain current service levels. A Space Needs Analysis has been done that projects office space needs in the future. At the projected rate of growth, another 6,500 square feet of office space is required to house the number of town staff needed in the future. Land Issues - For a Town the size of Oro Valley (28 square miles), Town owned land resources are negligible. The need for parks and recreational facilities, future buildings for administration and public safety, and other community amenities is not going to go away. The Town Council must face this issue head-on and come to consensus on a realistic game plan to obtain additional land. Putting this issue on the back burner will ultimately force the Town into a desperate situation - land either unavailable or totally unaffordable. The Town of Oro Valley's Capital Improvements Plan (CIP) is a multi-year plan that projects spending for all anticipated capital projects. The CIP addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate future growth. The CIP links the Town's planning and budgeting functions. It also looks at competing needs for infrastructure and determines how much money the community can afford to spend on them. The Town of Oro Valley took a very unique approach to the development of the community's OP. Oro Valley utilized a strategic planning approach that involved using all Town departments and management staff. The process required all Town departments to re-assess their plans and overall goals for capital improvements and the means for accomplishing them. A very important step in any strategic planning process is the identification of the overall purpose of the process. The development of a Mission Statement answers the question. "What are we trying to accomplish with the CIP?" The following is the Oro Valley CIP's Mission Statement. "To define five year capital improvement priorities and financial feasibility by creating a process and producing a document that responds to public desires and needs." 2 A. WHAT ISA CIP? A Capital Improvements Plan is a multi-year plan that projects spending for all anticipated capital projects for the Town. The Plan addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate the current needs as well as future growth. The CIP links the Town's planning and budgeting functions by providing a separate policy document to address the Town's capital needs. The CIP looks at competing needs for infrastructure and determines how much money the community can afford to spend on them. There are five basic components to the CIP: 1 . Infrastructure inventory which identifies existing infrastructure. 2. Needs assessment which identifies all needed and planned community infrastructure. 3. Financial analysis and determination of options and projected costs. 4. An infrastructure plan that programs infrastructure by year for a five year period. 5. A capital budget for the first year of the CIP. CAPITAL PROJECTS DEFINED Capital Projects are defined differently from community to community. They can be defined very broadly or narrowly. For the Oro Valley CIP, the following definition of Capital Projects will be used to describe which projects are to be included in the CIP: Cost over $10,000, have an expected useful life of two years or more and becomes an asset of the Town. The only exception to this definition will be police patrol units which may have a useful life of less than two years but will still be considered Capital Projects. B. ORO VALLEY C1 P EVALUATION CRITERIA One of the most important requirements for an effective selection process is the establishment of clearly defined, pre-specified criteria upon which the assessment and subsequent selection of capital projects will be based. The evaluation criteria become the guidelines for the capital improvements decision making process. They were determined "up front" in the process to allow objective decisions to subsequently be made. Clearly written policies make capital allocation decisions easier. Most decision makers intuitively have such policies in mind but seldom put them in writing. Each year, discussion of the policies begins the CIP process. This usually results in changes to the policies which reflect changes in priorities. The evaluation criteria are selected on the following basis: 1 . They refer to issues important to local governments inasmuch as ignoring 3 them could have potentially serious consequences. 2. They refer to items generally measurable in one form or other. 3. They are realistic. 4. They permit at least some degree of objectivity in ratings. 5. Most importantly, in their generic form, they represent criteria applicable to a wide variety of capital projects. The Oro Valley Technical Advisory Committee has selected the following ten criteria for use in the formation of the Capital Improvements Plan. Since some criteria are associated with more critical operations of the Town, each criteria has been assigned "Weighting Points". For instance, Criteria 1 : Public Health, Safety, and Welfare (97 Weighting Points) will have a greater emphasis than Criteria 10: Environmental Impact (58 Weighting Points) when the capital projects are evaluated. Every project is evaluated against these same criteria and weightings. This assures the most objective process possible and leads to consistent decision making. EVALUATION CRITERIA 1: PUBLIC HEALTH SAFETY, AND WELFARE 97 Weighting Points • How does the project improve the health and safety in the community? • Does the project specifically address a health or safety problem within the community? EVALUATION CRITERIA 2: FISCAL IMPACT 91 Weighting Points • Is the project a negative or positive impact on town revenues? • Does the request bring in additional outside funds in some proportion? • Is there a strong probability that other sources of funding other than local revenues can be found? • Does the request generate a large recurring impact on the operating budget? • Are budget figures and cost estimates contained in the request realistic and appropriate? • Is the project realistic from a financial standpoint? 4 • Are funds already dedicated or available for the project? • Is the project timely or does it provide a critical "window" of opportunity? EVALUATION CRITERIA 3: ECONOMIC DEVELOPMENT IMPACT 80 Weighting Points • Does the project positively impact on local economic development efforts? • Does the project promote economic growth? EVALUATION CRITERIA 4: IMPACT ON OPERATION AND MAINTENANCE 76 Weighting Points • What impact does the project have on current town operations? • How does the project impact maintenance? Does it require extraordinary maintenance costs? • Is the project doable from an operations and maintenance standpoint? • Will the project improve the efficiency of town staff? EVALUATION CRITERIA 5: IMPACT ON SERVICE LEVELS 73 Weighting Points • How does the project positively or negatively impact current service levels? • Does the project bring the town up to a required service level? • Does the project meet service level deficiencies? EVALUATION CRITERIA 6: ENVIRONMENTAL IMPACT 71 Weighting Points • Will the project positively effect the environment? • Will the project help the town to deal with an environmental issue/problem/mandate? • Does the project help to promote and/or protect the town's natural 5 environment? • Does the project help to protect the town's sensitive desert environment? EVALUATION CRITERIA 7: PUBLIC DESIRE 69 Weighting Points • Has the project been specifically identified by the public in a previous community forum, surveys, etc.? • If the request is to expand or enhance an existing service, to what extent is the need for the expansion demonstrated? • If the request is to provide a new service, to what extent is the need for the new service demonstrated? • Have citizen groups provided input or expressed a need for the request? • How does the project support community needs? EVALUATION CRITERIA 8: IMPLEMENTS LOCALLY ADOPTED PLANS 68 Weighting Points • Does the project work to implement current adopted local plans? • Is the project a part of or consistent with an articulated, acceptable mid-or long-range program? • Does the request implement some or all of the recommendations of a previous study? • Does the project have high, medium, or low departmental priority? EVALUATION CRITERIA 9: LEGAL RAMIFICATIONS 65 Weighting Points • Does the project increase or decrease the town's exposure to liability actions? • Is the project required to address a federal, state or local mandate? • How does the project meet local regulations? 6 EVALUATION CRITERIA 10: RELATIONSHIP TO OTHER PROJECTS/COORDINATION 58 Weighting Points • How does this project relate to other projects underway? • Can the project be effectively coordinated with other projects? i.e. water and/or sewer line repairs done in conjunction with road work • Is there another project that has to be completed before this project can be done? • What is the duration and severity of possible disruption and inconvenience to the public during construction of the project? • Are their additional costs associated with providing alternate or temporary services during construction? The Oro Valley CIP represents a five-year Capital Improvement Program totaling $42,685,200. While this is an imposing figure, it is anticipated that many of the proposed improvements will be funded with outside sources, such as grants, Development Impact Fees, matching funds, and donations. The CIP is prepared in order to plan for and meet the future needs of the residents of Oro Valley. In order to provide effective services, it is necessary to plan capital improvements well in advance. The first year this CIP represents the FY 1996-97 capital budget needs for the Town of Oro Valley. It is important to note that the CIP is intended to be a plan and a process rather than a budget, therefore projects may be altered in succeeding years. For example, some projects may be implemented earlier while others could be deferred when priorities and funding sources change. 7 C. GLOSSARY OF TERMS The following is a Glossary of Terms to be used in reviewing the Oro Valley Capital Improvement Plan. The terms are used throughout the document and are important in the infrastructure planning process. Assumption projects - Projects which are deemed absolutely essential to the operation of the Town, ongoing operating capital purchases which replace existing equipment outlined by the departmental equipment replacement program, projects which have designated funding for all or a majority of the project. These projects will receive priority funding from the CIP Capital Account and will not go through the project evaluation matrix. Bond - A written promise to pay (debt) a specified sum of money (called principal or face value) at a specified future date (called the maturity date(s)) along with periodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long- term debt. Capital Account/Budget - The capital budget is the approved fiscal commitment to develop capital projects within the current fiscal year and appears in the annual financial plan. Capital Improvement Plan - The Capital Improvement Plan (CIP) is a comprehensive five- year plan of capital projects which identifies priorities as to need, method of financing, and cost and revenues that will result during the seven years. The plan is a guide for identifying current and future fiscal year requirements and becomes the basis for determining the annual capital budget. The CIP is reviewed, updated and annually adopted by the Town Council. Capital improvement policies - Locally accepted policies that identify the amount of funds to be expended annually through budget and borrowing as well as terms and conditions for obligating those funds. These policies also outline how the Town does business in dealing with infrastructure planning. Certificate of Participation (COP) - Obligation of a public entity based on a lease or installment sale agreement. Community Development Block Grants (CDBG) -Arizona Department of Commerce grants to communities which can be used for a wide range of activities including infrastructure, housing rehabilitation, economic development, planning and public services. Exact activity must either principally: benefit low and moderate income persons, prevent or eliminate slums or blight or, meet other urgent community needs. Credit ratings - An independent rating service's evaluation of the credit worthiness of notes and bonds. Ratings influence the cost of borrowing. 8 Debt - Funds owed as a result of borrowing. Debt financing - The financial policy of borrowing capital to develop a public facility and pay off the debt over a set number of years. Debt service - The amount of funds needed to pay principal and interest on outstanding bonds for a given year or series of years. Development Impact Fee Ordinance (DIFO) - A town ordinance that requires a monetary charge on development to recoup a proportionate share of the public capital costs required to accommodate that development with necessary public facilities. Discretionary revenues - Revenues that are not obligated for particular expenditures. Financial analysis - A study of the cash flow and financial capabilities of a jurisdiction to determine its funding capacity and fiscal health. Fiscal Year (FY) - The Town's business year beginning July 1st and running through June 30th. General Obligation (G.O.) Bonds - A bond secured by the pledge of Oro Valley's full faith, credit, and taxing power. General Fund - Discretionary funds that are not specifically earmarked for a project and may be used for the Town's operations. Grants - This funding source includes State and Federal grants. Heritage Fund-Arizona State Parks matching grant programs for acquisition or development of public outdoor recreation areas and facilities. Highway Users Revenue Fund (HURF) - Established by state legislation and is administered by the State Department of Revenue. Revenue for the fund is derived from gasoline tax, truck weight fees, and various license fees imposed on motor vehicles. Infrastructure - Public support structures such as roads, street lighting, and water lines/facilities. Impact fees- Monetary payments made by builders or developers to defray the public costs of providing infrastructure to a development. Improvement District - An area of the community where infrastructure improvements have been made and are being paid for by the citizens who directly benefit from the improvements over a period of years. 9 Lease payment - The rent or service fee paid for the use of a facility. Lease purchase-This method of financing allows the Town to construct or acquire property and pay for it over a period of time by installment payments rather than an outright purchase. The time payments include an interest charge which is typically reduced because the recipient does not have to pay income tax on the interest. Long-term debt - Borrowed funding with a maturity of at least one year. Local Transportation Assistance Fund (LTAF) - Funds generated from the Arizona State Lottery and are earmarked for transportation purposes to towns and cities in Arizona. The LTAF is distributed to cities based on the percentage of population. Matching requirements - The Town's contribution to a project or function required by a funding source as the basis for the funder's contribution. Matching requirements are frequently imposed as a proportionate share of the overall contribution. Operating budget - The planned expenditure of funds, excluding capital expenditures, for operations, i.e., salaries, routine maintenance, and supplies. Operational Capital - Funding made available for the overall day to day operations of the Town, such as lease purchase programs for Police Department vehicles. Pay-as-you-go-The financial policy of capital outlays from current revenues rather than from borrowed funds. Property tax - The traditional system of local taxation under which owners of property pay taxes based on the value of their property. Public facilities - Facilities, such as libraries, civic centers, and police and fire stations sponsored by the locality for public use and service. Public/Private ventures - Cooperative projects in which both the public and private sectors contribute to the development, operation, and use of a facility. Public utilities - Basic public services such as water, electricity, and telephones that may be provided by either the public or private sector but that are publicly regulated to provide widespread service and to protect the public interest. Rated projects - Projects which are rated by the Decision Making Matrix and placed in their prioritized order. Revenue bonds -A bond payable solely from revenues derived from tolls, charges, or rents paid by users of a facility constructed with the proceeds of the bond issue. For example, 10 parking fees often pay off a bond used to construct parking facilities. Service levels - The amount or standard of service Oro Valley provides to its citizens. Special assessment districts - Charges assessed against properties in a limited area in exchange for special benefits conferred by a public improvement in the same section of the community. Special taxes - Usually voter-approved taxes whose revenues are designated for a particular project. Strategic planning - The planning process used to capitalize on currently optimum needs and opportunities. Taxable bonds - Municipal bonds whose interest earnings are subject to federal income taxation under the Internal Revenue Code. Tax base - A community's total property, resources, and wealth subject to taxation. Tax-exempt financing - The financing of a project through the use of bonds that exempts bondholders from taxes on interest earned from the bonds. Transfer payment - Gifts of money from one government entity to another, typically from the federal or state government to a local government. User charge - A fee imposed on facility or service users for upkeep and operations. Useful life - The number of years a facility or capital item is expected to last before it must be replaced or undergo major renovation. 11 ll. PUBLIC PARTICIPATION The Technical Advisory Committee (TAC) was formed by the Planning and Zoning Director. The committee consists of citizens, a utility representative, a council representative, department representatives, board and commission representatives, and town staff. The TAC held several meetings to develop the OP for Fiscal Year 1996/97. The first TAC meeting focused on establishing the evaluation criteria for Fiscal Year 1996/97. The TAC decided to use the same evaluation criteria as last year, with the addition of a new one. The economic development impact criteria was added to the list of evaluation criteria and given the number three ranking with a weighting of 80 points. A public forum was held to give the public an opportunity to voice their ideas and opinions on the CIP process and to have their questions answered. The next TAC meeting was held to rank the projects submitted by the departments. The TAG decided on the projects that should be assumption projects or ranked projects and eliminated projects which were determined not to be capital projects. The assumption projects are the projects that the TAC considered to be essential to the operation of the Town. The remaining projects were ranked according the evaluation criteria. The final meeting was held to determine the funding necessary for the assumption and ranked projects. The meeting included recommended funding of the projects. The TAC recommended that a committee be formed consisting of TAC members to review the funded projects on a quarterly basis for FY 1996/97. The committee would be involved in the planning stages of next years CIP process. 12 III. Financial Issues When considering what resources are available to fund needed infrastructure improvements, it is important to carefully examine the current funding situation as well as all possible financing alternatives. Like most communities, the Town of Oro Valley has determined that current revenues are inadequate to fund all of the projects in the CIP. In developing the CIP, a comprehensive review of all financial resources that might be available to meet current and future infrastructure needs was done. The purpose of this Chapter is to discuss financial issues related to infrastructure planning. A. Current Town Funding The Town of Oro Valley has been funding Capital Improvement Projects for years. However, up until last year (FY 1995/96) the funding has never been done in a systematic, organized fashion. One of the keys to a successful Capital Improvements Plan is consistent, systematic funding. The following financial data is necessary to determine the Town's ability to finance future capital projects based on current and projected revenues, current expenditure commitments, and projected future expenses to do business. The following options were considered when analyzing potential funding sources for CIP Projects: 1 . Pay as you go out of current revenues 2. Borrowing, which could include issuance of bonds 3. Certificates of participation, paid back by town revenues 4. Lease purchase agreements 5. Improvement districts, where residents who benefit from the improvements pay for them over time. 6. Development Impact Fee Ordinances where developers are obligated to pay for a portion of the infrastructure needed to service their projects. 7. Federal and State Grants 8. Donations, volunteer efforts, intergovernmental agreements 9. User fees Current Situation: Oro Valley will have a $1,371,668 million surplus at the end of FY 1995-96. Town revenues are heavily dependent on local sales tax, residential building permits, and state shared revenues. Much of this income is directly related to rapid housing development. The challenge for the Town will be to develop funding sources to replace this income when a slow down in housing development inevitably comes. 13 Non construction retail sales tax revenues, other than those related to the tourism industry, have been relatively weak. This can be attributed to not only retail leakage to the Tucson Area, but the fact that a large portion of the local retail sales is in non-taxable food items. Sales taxes are unstable and are not a recommended funding vehicle for capital improvements. Highway User Revenue Funds of $651,000 should remain at or above this level. Most communities utilize a portion of this fuel tax to pay for administration in the Public Works Department. The intent of this fund is to pay for road improvements and equipment. Currently, Oro Valley spends a high percentage of its HURF funds to pay for maintenance. In fact, quite a bit higher than many Arizona communities. The coming years are going to place more stress on the area's roads. Additional HURF funds are going to be needed for materials and equipment. The FY 1995-96 budget contains $1,440,332 allocated for capital outlays. Budget projections do not show an ability for the Town to make this large of a contribution to the CIP on an annual basis. As the community grows, staffing issues and operating costs are going to place additional pressure on the budget. After careful review, it was determined that the FY 1996-97 contribution to the capital account would be $1,390,000. This figure includes funding of $1,069,192 for all capital projects, vehicle and equipment replacement programs, and street projects, plus debt service of $320,808 on projects from previous years. Current Long Term Debt The Town of Oro Valley is in a unique position for a growing community in that it is relatively debt-free. Lease purchase agreements have been sparingly used to purchase equipment and spread the payments out over a period of years. The only current lease purchase agreement is for a street sweeper. The annual debt service on this equipment is $22,430. The agreement will be paid off in two years. The Town has a note outstanding for the purchase of a 40 acre parcel of land. The annual debt service payment is $92,183. The Town has also utilized a Certificate of Participation to finance the current Town Hall facility. The annual debt service on the certificate is $155,000 for the next four years. Total long term debt service is $1,850,000. Current Bonding Capacity Although it is the goal of the Oro Valley CIP to finance projects without borrowing (pay-as- you-go), some projects may need to be financed. Oro Valley is at a disadvantage in this 14 area because currently there is no additional Town property tax. While the majority of citizens have indicated a desire to keep it that way, it is very difficult to create the community amenities residents are desiring without one. General Obligation (G.O.) Bonds are the most common and inexpensive way to finance large community projects. G.O. Bonds are based on the full taxing authority of the municipality and are therefore, quite safe for the investor. This safety makes the bonds attractive and allows lower interest rates to be paid. Since the Town's only taxing authority is on discretionary items (sales tax, bed tax, etc.), the choice of financing mechanisms is limited. However, at some point, the citizens of Oro Valley may choose to finance needed capital projects. Before planning to finance future capital improvements through borrowing, it is important to know how much credit is available. The State of Arizona places limits on the amount a municipality can borrow or bond. This is reflected as the bonding capacity (or credit line) of the municipality. The following are the parameters that the Town of Oro Valley must utilize in determining their bonding capacity. 1 . Based upon a secondary assessed value of $1 19,234,229 on June 30, 1995. 2. Under Arizona Law, municipalities may issue general obligation bonds for purposes of water, waste water, artificial light, open space preserves, parks and recreational facilities up to an amount not exceeding 20% of the secondary assessed value. This would allow the Town of Oro Valley to bond for an amount of $23,846,845 3. Under Arizona Law, municipalities may issue general obligation bonds for all other purposes not listed in Note 2 above, up to an amount not exceeding 6% of the secondary assessed value. This would allow the Town of Oro Valley to bond for an amount of $7,154,053. Bonding Alternatives Many communities utilize the issuance of bonds to pay for large capital projects that cannot be financed by current reserves. The Town of Oro Valley has never taken this route, but it is likely that some of the needs outlined in the Capital Improvements Plan will not be met without incurring some form of long term debt. An example of how the citizens of Oro Valley might benefit from bonding is the current parks and recreation situation. For a community of 19,587 people, amenities in this area are quite scarce. The Town could begin to save for these projects out of current revenues today. To accumulate the millions of dollars needed to develop the facilities would take many years. In addition, by the time the money had been accumulated, land may not be available or be too expensive. 15 The bonding alternative would allow the facilities to be furnished now, at today's prices. The children and adults who are current Oro Valley residents would be able to enjoy the amenities now. The saving method places the burden on these people without the guarantee that they will be here to reap the benefits. Any bonds issued by the Town are subject to a vote by the people. The bonds would be paid off over a period of years by the citizens of the community. A common practice by many communities is to offer a bond "package". The package contains several alternatives for the voters to consider. An example of a package that Oro Valley could offer would be: Issue 1 . Dennis Weaver Park Upgrades and Expansion Issue 2. Copper Creek Park Development (land acquisition and facilities) Issue 3. Raw Land for Future Public Facilities Voters will have the opportunity to approve a current bond request at the March 12 election on none, some, or all of the issues. Note: A general obligation bond election is being held on March 12, 1996. the bond election places five separate questions on the ballot for voter considerations. Question 1 Bonds for Parks and Recreation Facilities $6,445,000 Question 2 Bonds for Honey Bee Canyon $3, 120,000 Question 3 Bonds for the Preservation of Natural Sonoran Desert $2,015,000 Question 4 Bonds For Bicycle Lanes and Bicycle Paths $1,510,000 Question 5 Bonds for Equestrian and Multi-Use Trails $1,005,000 The total combined amount of the bonds is $14,095,000. Voters will have an opportunity approve all of the questions, none of the questions or any combination of questions. 16 IV. Oro Valley CIP FY 1996-97 Through FY 1999-2001 The Oro Valley Capital Improvements Plan (CIP) identifies needed capital projects and programs them by fiscal year. The CIP looks at competing needs, costs and potential funding sources. The CIP process and plan resolves the political choices about what to build or buy, where and when to build or buy it, and how much to spend on it. The Oro Valley CIP is a five year plan that projects spending for all anticipated capital projects. The plan addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate future growth. The FY 1996-97 Capital Budget will be submitted as the capital outlay portion of the FY 1996-97 Town Budget. The purpose of this Chapter is to present the Oro Valley CIP for the fiscal year of 1996-97 through 2000-2001 . The Chapter is divided into five sections: • CIP Assumptions and Policies • CIP Assumption Projects • CIP Prioritized Capital Projects • FY 1996-97 Capital Budget • Oro Valley Capital Improvements Plan: FY 1997-98 through FY 2000-2001 A. CIP Assumptions and Policies Over the years, the Town of Oro Valley has financed a substantial portion of capital improvements through operating revenue and use of reserves. The pay-as-you-go financial policy has been the Town's "modus operandi" in the past. The goal of the Oro Valley debt management policy is to maintain the Town's ability to incur present and future debt at the most beneficial interest rates in amounts needed for financing the CIP, without adversely affecting the Town's ability to finance essential community services. Policy Statements • The Town of Oro Valley shall allocate at least $1,000,000 annually out of available surplus funds for the implementation of the Capital Improvements Plan. Surplus funds shall be considered all moneys accumulated from overestimated cost projections, unspent funds, or operational surpluses. Funds will be available only after the minimum fund balances have been preserved. • A five year capital improvements plan will be developed and updated annually along with corresponding anticipated funding sources. • The Town shall open a separate CIP Capital Account. Barring an emergency, funds can only be disbursed from this account if the project has been through the CIP 17 Evaluation Process. • The CIP Capital Account shall maintain a $50,000 emergency fund balance at all times. Should this emergency fund be used, Town Council shall reimburse the emergency fund as soon as possible. Requests to tap into the emergency fund will be screened by the Town Manager with Council approval necessary for disbursement. • The CIP Capital Account shall maintain an $25,000 balance for the completion of traffic signal projects when they are warranted. When this fund is used, Town Council shall allocate funds to reimburse the traffic signal fund as soon as possible. • Pay-as-you-go financing will be an integral part of the Oro Valley CIP. • Efforts will be made to maintain or improve the Town's bond rating. • Capital projects and improvement districts financed through the issuance of bonded debt will be financed for a period not to exceed the useful life of the project. • The Town shall consider forming improvement districts upon the request of residents based on public benefit, debt equity, and need. • All Town departments will investigate ways and strive to become more self supporting. • The Town shall avoid utilizing lease purchase agreements to finance relatively small purchases, such as vehicles. • The Town shall work aggressively with developers to help future development pay for itself. • Raised pavement markers will be included in all new street project proposals. • Department Heads shall meet prior to the annual CIP Update Process to discuss the best use of equipment and vehicle replacement program funds. These recommendations shall be submitted to the TAC for review and discussion. • Using open lines of communication, departments shall consolidate purchases whenever possible to maximize funds. • When purchasing equipment, thought will be given to compatibility with equipment in other departments. 18 • Prior to the CIP Update Process, the Public Works Director shall outline a prioritized list of projects for the Pavement Preservation Program. This list shall be submitted to the TAG for discussion and review. CIP Assumptions In addition to the above policy statements, the following assumptions were made in the development of the Oro Valley CIP. • General fund surplus (fund balance) will not be allowed to be less than a level of funding which would allow the Town to run without income for 4-6 months. • State shared revenues are assumed to remain at current minimum levels of $1,357,000. • Local sales tax proceeds are estimated to remain at a minimum level of $3,456,000. Due to the high reliance of home sales on sales tax revenues, this figure should be monitored closely. • Highway User Revenue Fund proceeds to remain at current minimum level of $651,000. • LTAF to remain at a minimum level of $101,000. The following table lists all of the projects that were submitted for Oro Valley's first Capital Improvements Plan. The name of the project and the total cost of the project are listed. Summary of All Capital Projects Project Total Cost Street Improvement - Tangerine Road, Monterra to La Canada $1,325,000 Street Improvement - Tangerine Road, First Ave. to Monterra 1,000,000 Lighting Upgrades - Dennis Weaver Park 50,000 Street Improvement - First Avenue, Oracle to Tangerine 6,850,000 Prisoner Processing/Release Area & Nighttime Walk-in 65,000 Calle Concordia Improvements 525,000 Dennis Weaver Park Upgrades; Phase II 496,000 Acquisition Adjacent Property 1,000,000 Long-Term Facility Construction 1,000,000 19 Re-Design Judge's Bench 10,000 CDO River Park Trai I head Development 10,000 Work Vehicles for Parks and Recreation Staff 45,000 Mobile Data Terminals 155,000 Investigative Special Operations/Radio Repeater Purchase Site Rental & Installation 17,000 Digital Tape Logger, 32 Channel 42,000 La Canada Extension, Tangerine to Moore 2,500,000 Community Policing Printshop 16,200 Backhoe Replacement 70,000 Front-End Loader Replacement 175,000 Hardy/Northern Realignment 525,000 Replacement Service Truck 35,000 AZAFIS Upgrade 16,500 Lambert Lane Reconstruction/West of La Canada 275,000 Blackstone Road Reconstruction 20,000 El Conquistador Way Reconstruction 260,000 Public Works Yard 1,500,000 Covered Parking at Town Hall 45,000 OV Municipal Parking Building 3,000,000 Pavement Preservation 950,000 Spot Safety Improvements 500,000 Sign Replacement Program 50,000 Honey Bee Canyon/Sausalito Wash Acquisition 1,500,000 Catalina Shadows Roadway 110,000 Street Improvement - La Canada, Linda Vista to Lambert Lane 6,172,000 GIS Equipment & Software 26,000 Drainageway Relocation/Safety Improvements 45,000 Copper Creek Park Land Acquisition 900,000 Dennis Weaver Park Land Acquisition 450,000 Autumn Hills Left Turn Bays 65,000 Dennis Weaver Park Upgrades; Phase I 150,000 Rockridge Apartments Access Improvements 25,000 Copper Creek Park Development 745,000 Pool Car 10,000 Departmental Vehicle 12,000 Street Improvement - La Canada Dr., Hardy to Linda Vista 3,331,000 Dennis Weaver Expansion 1,095,000 Rancho Feliz Drainageway 200,000 Marked Police Vehicles and Administration Replacement 1,561,000 In-Service Training Equipment/Community Service Program 13,500 Street Improvement - La Canada Drive Lambert Lane to Naranja 2,250,000 Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 Miscellaneous Traffic Signals 600,000 20 Bike Lanes for Naranja, La Cholla to La Canada 165,000 Town Wide Computer Upgrades 87,000 Topographic Mapping of Town 100,000 Paved Parking Area Calle Concordia Building 25,000 Short-term facilities planning - Modular Building 210,000 Four Wheel Drive Vehicle 25,000 CIP Assumption Projects $42,685,200 The Oro Valley CIP Assumption Projects are those capital projects which are deemed absolutely essential to the operation of the Town. Additionally, they may be ongoing operating capital purchases which replace existing equipment outlined by an equipment replacement program or projects which have designated funding for all or a majority of the project. Some of these projects are also totally contingent on outside funding. These projects receive priority funding from the CIP Capital Account and they do not go through the project evaluation process. The beginning of this section contains a Summary of Assumption Projects which gives the project name, number, and total project cost. Following this Summary is a brief description of each project and its justification for becoming an Assumption Project. The final table is a Year-By-Year Schedule of Assumption Projects. Summary of Assumption Projects Project Total Cost Al . Pavement Preservation 950,000 A2. Spot Safety Improvements 500,000 A3. Sign Replacement Program 50,000 A4. Honey Bee/Sausalito Wash Acquisition 1,500,000 A5. Catalina Shadows Roadway 110,000 A6. Street Improvement - La Canada Dr., Linda Vista to Lambert 6,172,000 A7. GIS Equipment and Software 26,000 A8. Drainageway Relocation/Safety Improvements 45,000 A9. Copper Creek Park Land Acquisition 900,000 A10. Dennis Weaver Park Land Acquisition 450,000 A11. Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades; Phase I (Heritage Grant) 150,000 A13. Rockridge Apartments Access Improvements 25,000 A14. Copper Creek Park Development 745,000 21 A15. Pool Car 10,000 A16. Departmental Vehicle 12,000 A17. Street Improvement - La Canada Dr., Hardy to Linda Vista 3,331,000 A18. Dennis Weaver Expansion 1,095,000 A19. Rancho Feliz Drainageway 200,000 A20. Marked Police Vehicle & Administration Replacement 1,561,000 A21 . In-Service Training Equipment/Community Service Program 13,500 A22. Street Improvement - La Canada Dr. Lambert Lane to Naranja 2,250,000 A23. Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 A24. Miscellaneous Traffic Signals 600,000 A25. Bike Lanes for Naranja, La Cholla to La Canada 165,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 100,000 A28. Paved Parking Area Calle Concordia Building 25,000 A29. Short-term facilities planning - Modular Building 210,000 A30. Four Wheel Drive Vehicle 25,000 TOTAL COST OF ASSUMPTION PROJECTS $21,657,500 22 Assumption Projects Project Al: Pavement Preservation This is an annual program for the preservation of existing public streets using slurry, chip and acrylic seals. This program is tailored annually using the information generated by the Town's pavement management program, which seeks to minimize pavement life cycle costs. Additionally, this program is necessary to meet Federal ISTEA regulations. Funding source will come from HURF funds. Currently scheduled for FY 1996/97 through FY 2000/01 . Project A2: Spot Safety Improvements The safety improvement program is an annual program which addresses spot safety needs such as: dip crossing reconstruction, turn lanes installation, bicycle lane segment completion, sight visibility improvements, pedestrian improvements, and minor traffic control devices. Funding source will come from HURF/HES funds. Currently scheduled for FY 1996/97 through FY 2000/01 . Project A3: Sign Replacement Program The Federal government is requiring jurisdictions to convert to the metric system in the near future. All speed limit signs will need to be posted for metric. Also, the signs within the Town require regular repair and replacement. This program will provide the resources for systematic sign replacement. Funding source will come from HURF funds. Currently scheduled for FY 1996/97 through FY 2000/01 . Project A4: Honey Bee Canyon/Sausalito Wash Acquisition This project involves a significant natural area in the community. The Town is committed to protecting this area which will also provide trail access into Tortolita Mountain Park. The funding for this project is dependent on the outcome of the bond election. Project A5: Catalina Shadows Roadway This improvement is proposed as part of Annexation 2A, for upgrading existing roadways within the annexation area. Project A6: Street Improvements - La Canada Dr., Linda Vista to Lambert Lane Part of the capital improvement schedule for the La Canada Drive Development Impact Fee. This project will be needed to widen La Canada between Linda Vista and Lambert to four lanes. Traffic will trigger this improvement during FY 1998/99. However, it is not to be implemented until FY 2000/01 because of other work scheduled. Project to include bridge widening, storm drains, multi-purpose lanes, landscaping, and public art. Funding sources will come from impact fees, GO Bonds, and CIP capital account. Project A7: Geographic Information Systems Equipment and Software In order to augment the department's mapping and analysis functions, and keep pace with emerging technologies, the department will need to purchase microstation computer and associated Arc/Info and Arc/CAD software packages. Funding source will come from CIP 23 capital account. Currently scheduled for FY 1996/97. Project A8: Drainageway Relocation/Safety Improvements This project will remove the drainageway adjacent to La Canada Drive and place the water in pipes under La Canada Drive. Safety improvements associated with this project will be included. Funding source will come from HURF funds. Currently scheduled for FY 1996/97. Project A9: Copper Creek Park Land Acquisition This project would provide the necessary land for parks and recreation facilities in the Copper Creek area. A 30 acre parcel would be purchased. Funding will be dependent on the upcoming bond election. Project A10: Dennis Weaver Park Land Acquisition This project will be to acquire a ten acre parcel adjacent to the existing Dennis Weaver Park. This land would be required to provide space for additional park amenities. This project is contingent on the upcoming bond election. Project Al1: Autumn Hills Left Turn Bays This improvement has been requested by the Homeowner's Association. Funding will come from HURF funds. Currently scheduled for FY 1996/97. Project Al2: Dennis Weaver Park Upgrades; Phase I (Heritage Grant) The Town applied for a grant through the Arizona State parks Heritage Fund program to replace the lighting on field #1, replace the older playground equipment, construct a new picnic ramada, upgrade or replace the park restroom facilities to meet ADA requirements, and develop the existing unused 5 acres as open turk space. This is a matching grant program; the Town is matching $150,000 to $150,000 in grant funds for a total project budget of $300,000. Funding sources will come from CIP capital account and heritage grant. Project A13: Rockridge Apartments Access Improvements This project will provide access from Pusch View Lane across a drainage channel to the property west of Rockridge Apartments. Funding for this project will come from the CIP capital account. Currently scheduled for FY 1996/97. Project A14: Copper Creek Park Development This project would provide the necessary land for parks and recreation facilities in the Copper Creek area. A 30 acre parcel would be purchased. Funding for this project is contingent on the upcoming bond election. Project A15: Pool Car The public works department is in need of an additional pool car due to the move to the Calle Concordia facility. Funding sources are CIP capital account and HURF funds. 24 Currently scheduled for FY 1996/97. Project A16: Departmental Vehicle The Planning and Zoning department's zoning inspection personnel are presently without a dedicated inspection vehicle. A small sedan is needed for general purpose departmental use, to be shared by zoning inspectors and other planning department personnel. Funding will come from CIP capital account for FY 1996/97. Project A17: Street Improvement - La Canada Drive, Hardy to Linda Vista Part of the capital improvement schedule for the La Canada Drive Development Impact Fee. This project will be needed to widen La Canada between Linda Vista and Lambert to four lanes. Traffic will trigger this improvement during 1998/99. However, it is not to be implemented until FY 2000/01 because of other work scheduled. Project to include bridge widening, storm drains, multi-purpose lanes, landscaping, and public art. Funding will come from impact fees, bonds, and CIP capital account. Scheduled to begin in FY 1997/98. Project A18: Dennis Weaver Park Expansion This project consists of park and recreation facilities for the property adjacent to Dennis Weaver Park. The project includes baseball fields, soccer fields, softball fields, jogging trail, and picnic ramadas. The funding is contingent on the upcoming bond election. Project A19: Rancho Feliz Drainageway Existing channel bottom made of soil cement is failing due to high velocities and abrasion by sediment. Failure could result in flooding of up to 36 homes. Channel bottom to be given a 4" flashcoat of shotcrete. Funding will come from Pima County Flood Control District. Scheduled for FY 1996/97. Project A20: Marked Police Vehicle & Administrative Vehicle Replacement This is for the annual replacement of Police Department vehicles that have exceeded their normal, useful service life (100,000 + miles). Vehicles are replaced on a 4 - 7 year cycle based upon miles traveled. Funding will be from the CIP capital account. Currently scheduled for FY 1997/97 through FY 2000/01 . Project A21: In-Service Training Equipment/Community Service Program This is a two year project that provides equipment for training needs both within the Police Department and for Community Service Programs, i.e. Dare, Neighborhood Watch, Traffic Safety, Crime Prevention, Great, etc. Project time period is two years beginning FY 1995/96, to be done in two phases. This request is for second year funding. Funding will come from the CIP capital account. Currently scheduled for FY 1996/97. Project A22: Street Improvements - La Canada Drive, Lambert Lane to Naranja This project is needed to strengthen the existing failing pavement, eliminate drainage 25 hazards, provide a multi-purpose lane, provide a golf cart underpass, and improve sight distance/rideability. This project is a key component of the La Canada Drive Impact Fee Ordinance, and is needed to make up the Town's share of overall project. Funding will come from STP, developer, and CIP capital account. Currently scheduled for FY 1996/97. Project A23: Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte This project will develop a continuous bike link to Oro Valley from other parts of Pima County's bike route through the Catalina Foothills. This project will receive 80% of its funding from a federal transportation enhancement grant which Oro Valley and Pima County were jointly awarded. Scheduled for FY 1996/97. Project A24: Miscellaneous Traffic Signals This project is for traffic signals in various locations throughout Oro Valley. Funding sources are ADOT, CIP capital account, developer, HURF/HES. Scheduled for FY 1996/97 through FY 2000/01 . Project A25: Bike Lanes for Naranja Road, La Cholla to La Canada Drive Development of two five foot bicycle lanes adjacent to the outside edge of pavement. Funding sources are HURF/HES, and developer. Currently scheduled for FY 1997/98. Project A26: Town Wide Computer Upgrades This project is for the upgrade of all Town computers. Funding will come from the CIP capital account. Scheduled for FY 1996/97. Project A27: Topographic Mapping of Town This project is necessary for proper evaluation of plans and for drainage purposes. Mapping of the entire Town will be digitally compiled for use in future Geographic Information System applications. Funding would come from the CIP capital account and is scheduled for FY 1996/97 through FY 1998/99. Project A28: Paved Parking Area Calle Concordia Building The reconstruction of the building at Calle Concordia did not include paving of the parking lot. This paving will meet the requirements of the Zoning Code. Funds will come from the CIP capital account and is scheduled for FY 1996/97. Project A29: Short-term Facilities Planning - Modular Buildings Modular building would house additional development services staff and relieve crowded conditions in the existing building. The proposed modular building would also accommodate the Prosecuting Attorney and Building Safety departments. Funding would come from the certificates of participation and is scheduled for FY 1996/97. Project A30: Four Wheel Drive Vehicle The Planning and Zoning department's zoning inspection personnel are presently without 26 a dedicated inspection vehicle. An all terrain (four wheel drive) vehicle is needed to access undeveloped properties to ascertain compliance with salvage and grading plans. Funding will come from the CIP capital account and is scheduled for FY 1996/97. 27 Prioritized Capital Projects The following tables contain all of the capital projects which have all been through the Decision Making Matrix. The first table provides a list of these projects by name and total project cost. The second table places the projects in the numerical ranking assigned by the Project Evaluation phase of the project. This long term list of priorities must be consulted whenever a funding decision is made. This list will also be updated each year as projects are implemented, circumstances change, or new projects are added. This list was utilized to determine the Capital Budget for FY 1996-97. These tables are followed by a brief description of all of the projects that have gone through the Decision Making Matrix. The final table in this section is a Year-By-Year Summary of Prioritized Projects. Summary of Prioritized Projects Project Rating Points Total Cost P1 . Street improvement-Tangerine Road, Monterra to La Canada 5,776 $1,325,000 P2. Street improvement-Tangerine Road, First Ave. to Monterra 5,776 1,000,000 P3. Lighting Upgrades to Dennis Weaver Park 4,995 50,000 P4. Street Improvement - First Avenue, Oracle to Tangerine 4,974 6,850,000 P5. Prisoner Processing/Release Area and Nighttime Walk-in 4,964 65,000 P6. Calle Concordia Improvements 4,962 525,000 P7. Dennis Weaver Park Upgrades; Phase II 4,882 496,000 P8. Acquisition Adjacent Property 4,622 1,000,000 P9. Long-term Facility Construction 4,499 1,000,000 P10. Re-design Judge's Bench 4,418 10,000 P11 . CDO River Park Trailhead Development 4,399 10,000 P12. Work Vehicles for Parks & Recreation Staff 4,159 45,000 P13. Mobile Data Terminals 4,035 155,000 P14. Investigative Special Operations/Radio Repeater Purchase Site Rental and Installation 4,032 17,000 P15. Digital tape logger 3,990 42,000 P16. La Canada Extension Tangerine to Moore 3,985 2,500,000 P17. Community Policing Printshop 3,982 16,200 P18. Backhoe Replacement 3,816 70,000 P19. Front-end Loader Replacement 3,816 175,000 P20. Street Improvement - Hardy/Northern Realignment 3,469 525,000 P21 . Replacement Service Truck 3,264 35,000 P22. AZAFIS Upgrade 3,242 16,500 28 P23. Lambert Lane Reconstruction West of La Canada 3,080 275,000 P24. Blackstone Road Reconstruction 2,921 20,000 P25. El Conquistador Way Reconstruction 2,765 260,000 P26. Public Works Yard 1,883 1,500,000 P27. Covered Parking at Town Hall 1,083 45,000 P28. OV Municipal Parking Building 0 3,000,000 TOTAL COST OF PRIORITIZED PROJECTS $21,027,700 29 Prioritized Projects Project 1: Street Improvement - Tangerine Rd., Monterra to La Canada 5776 Rating Points Realignment, vertically and horizontally of Tangerine Road for safety and structural adequacy, removing DIP crossing and improving safety. Resulting road to become part of State Route 989. Funding sources come from HURF funds and CIP capital account. Scheduled to begin in FY 1998/99. Project 2: Street Improvement - Tangerine Rd., First Ave. to Monterra 5776 Rating Points Realignment, vertically and horizontally of Tangerine Road for safety and structural adequacy, removing dip crossings. Resulting road to become part of State Route 989. Funding sources will be HURF funds and the General Fund. Scheduled to being in FY 1997/98. Project 3: Lighting Upgrades to Dennis Weaver General Pedestrian Areas 4,995 Rating Points One item that has been brought to staff's attention is the fact of adequate lighting for night usage in the pedestrian sidewalk area at Dennis Weaver Park between the concession building and field #1, the sidewalk leading up to and around the ramadas, and around the ramadas themselves. Lighting suggested for these areas include medium sized decorative light poles with flood lighting for the area next to field #1 . Bollards could be located along the sidewalk paths leading up to and around the ramadas for a more aesthetic appearance. Funding will come from CIP capital account and is scheduled for FY 1996/97. Project 4: Street Improvement - First Avenue, Oracle to Tangerine 4,974 Rating Points Improvement of First Avenue to widen to four lanes, based upon traffic threshold being exceeded. Improvements to include storm drains, multi-purpose lanes, additional bridge span adjacent to existing bridge, and public art. Funding will come from impact fees, GO bonds, and improvement district. Scheduled to begin FY 1999/00. Project 5: Prisoner Processing/Release Area and Nighttime Walk-In 4,964 Rating Points Completion of approximately 400 square feet of building space containing a waiting area and interview rooms attached to our holding area. Completion of a rear driveway and small parking area to access this area off of La Canada, North of our current driveway. Currently there is no area appropriate for persons waiting for the release of prisoners or processing releases. After normal working hours, our officers are having to meet persons in our parking lot to release arrestee and complete necessary paperwork. Victims and suspects have the same waiting area. Funding will come from CIP capital account and is scheduled for FY 1996/97. 30 Project 6: Calle Concordia Improvements 4,962 Rating Points This project will analyze the needs for landscaping, left-turn bays into Canyon Del Oro High School and driveway drainage improvements along Calle Concordia. This project includes consultant studies, construction drawings and construction cost estimates. Funding will come from HURF. Scheduled to begin FY 1996/97. Project 7: Dennis Weaver Park Upgrades; Phase II 4,882 Rating Points The present Mercury Vapor lighting on fields 2-5 is outdated technology, has high maintenance costs, and is extremely expensive to operate. These fields need to have Metal Halide lighting systems. There is a serious dust control problem at the park in the evening during its highest use time. Stabilized granite needs to be installed in and around all high traffic pedestrian areas to eliminate this as a health and safety concern. There is also a need for additional park fixtures such as benches, drinking fountains, and kiosks to display community information. The racquetball courts need to be repainted, have new windscreening installed around the top, minor roof repairs, and light control buttons need to be installed in each court for better control of existing lighting system and for user convenience. As an alternative, the Town may want to consider installing a telephone operated master controller at the park which can be programmed to control when the ballfield, racquetball, ramada, playground, and swimming pool lights as well as sprinkler system turn on and off by dialing an assigned telephone number, keying in the appropriate facility code and usage time. The swimming pool is in need of additional shade structures as well as deck space to better accommodate swimmers and spectators. The perimeter fence needs to be replaced because it is a safety hazard in that it is barbed and has no top rail. Since not all of the racquetball courts are in use at once, half of the racquetball court area could be converted to a much needed indoor basketball court by removing the middle wall section, mounting the goals, and restriping the floor. Funding will come from the CIP capital account and is scheduled for FY 1996/97. Project 8: Acquisition Adjacent Property 4,622 Rating Points The citizens of Oro Valley, through a survey, indicated that Town Hall expansions should be centralized in one place. In order to accomplish this goal, the adjacent property to the North needs to be acquired. Possibilities for expansion are fast coming to an end with the present property. Increased services provided which require additional buildings bring increased traffic flow and create need for additional parking. The citizens express their desires for: a senior center (like Reid Park) with accommodations for exercise, education, arts and crafts; multi-use center; auditorium; performing arts center; teen center; library; etc. The acquisition of the adjacent property would provide room for expansion. Any additional expansion should most likely take into consideration a municipal parking garage. Funding will come from the CIP capital account and is scheduled for FY 1996/97. 31 Project 9: Long-Term Facility Construction 4,499 Rating Points The continued growth of the Town makes it necessary to consider the need for additional facilities for the staff and public. Funding will come from CIP capital account and is scheduled for FY 1996/97. Project 10: Redesign Judge's Bench 4,418 Rating Points This project would redesign the judge's bench in the Magistrate Court. An architect would be hired to design and evaluate related costs. Funding would come from the CIP capital account and is scheduled for FY 1996/97. Project 11: CDO River Park Trailhead Development 4,399 Rating Points This project will develop a trailhead adjacent to Rockridge Apartments to serve the proposed CDO River Park. The trailhead would include a monument sign and parking lot. Land will be donated by Rockridge Apartments. Project funded by the CIP capital account and scheduled for FY 1996/97. Project 12: Work Vehicles for Parks and Recreation Staff 4,159 Rating Points Parks and Recreation Division employees, including the Parks and Recreation Administrator as well as park maintenance employees are currently using their own personal vehicles in which to conduct all of their Town business while on duty. This has caused a financial hardship on the employees in terms of fuel and repair costs on their personal vehicles. It also greatly increases the Town's liability exposure in the event an employee is involved in an accident. Requested is for two vehicles in FY 1 996/97 (one for the Parks and Recreation Administrator and one for the park maintenance employees) and one in FY 1997/98 in the event the park maintenance operations and responsibilities expand in scope due to the development of other park sites. Funding will come from the CIP capital account. Project 13: Mobile Data Terminals 4,035 Rating Points Mobile Data Terminals/laptop computers will enable patrol officers to run vehicle/people check from the patrol vehicle. Bypassing the dispatcher will increase officer safety, avoid frequency saturation, and may eliminate the need for manned frequencies as the patrol area and police force expands. They will add an additional safety link between the patrol officers and police communications and allow for confidential messages and calls to be passed along without allowing media or suspects to intercept. Funding will come from CIP capital and is scheduled for FY 1996/97. 32 Project 14: Investigative Special Operations/Radio Repeater Purchase Site Rental and Installation 4,032 Rating Points Currently the Police Department has one operational primary radio repeater frequency used exclusively for the patrol function. We are in need of a secondary operational radio repeater frequency to be utilized for investigative/special operations that take members of the Police Department outside the boundaries where we are able to communicate with each other on a simplex frequency. Over the past several years we have been involved in operations where we have had to rely on mobile telephones to try and conduct surveillance after we have lost radio communications. This has proved impossible yet expensive. As we have continued to grow, this problem has only increased and needs to be dealt with as soon as possible through the installation of a secondary frequency radio repeater in a location that would offer communication in a greater portion of the Tucson metropolitan area. Funding source will come from CIP capital account and is scheduled for FY 1996/97. Project 15: Digital Tape Logger 3,990 Rating Points The department's cuurent tape togger is 7.5 years old. They generally have a useful like up to 10 years. This would require replacement by 1998. Technology is advancing at a rapid pace on these machines. Service contracts have doubled in price this year and service technicians are hard to find that will work on this outdated equipment. With the addition of more phone lines and radio frequencies to monitor, a larger more advaced Digital Tape Logger is necessary to keep up with the changing world around us. This unit should be adequate for the next 8 years. Scheduled for FY 1996/97 and funded by the CIP Capital Account. Project 16: La Canada Extension, Tangerine to Moore 3,985 Rating Points Traffic modelling completed as a part of the Rancho Vistoso PAD amendment has revealed a need for the extension of La Canada Drive, from Tangerine to Moore. Without this extension, Rancho Vistoso Boulevard and First Avenue will exceed capacity as the Rancho Vistoso neighborhoods develop. Additionally, roadways within the developments of Vistoso Ridge, Sunridge I and II, and Rancho de Oro will also reach capacity. This project includes construction of new roadway and traffic signal at Tangerine and La Canada. Possible funding sources are impact fees and improvement district. Scheduled to begin Fiscal Year 1997/98. Project 17: Community Policing Printshop 3,982 Rating Points With the department's commitment to community policing, there is a constant need for publications and information to be distributed to the community including schools, businesses, residents, multi-housing projects, public groups, neighborhood watch, victim assistance, crime prevention, advisory councils, etc. Cost to print these publications, especially customizing to town and departmental needs can be prohibitive and time 33 consuming. The department is requesting funding for a stand-alone 486 DX computer work station and color printer, and a computer notebook, overhead projector and software to assist with mobil presentation projects for community policing programs. For those materials that cannot be printed in-house, we are asking for additional monies to purchase pre-printed materials, i.e., 9-1-1 stickers, neighborhood watch signs, juvenile crime prevention awards/rewards, etc. Funding will come from the CIP capital account and is scheduled for FY 1996/97. Project 18: Backhoe Replacement 3,816 Rating Points Replacement of backhoe. Currently scheduled for FY 1996/97 and funding source will come from HURF funds. Project 19: Front-End Loader Replacement 3,816 Rating Points Replacement of aging front-end loader used by the Town. Funding source will come from HURF funds and is scheduled for FY 1996/97. Project 20: Hardy/Northern Realignment 3,469 Rating Points This intersection will become the responsibility of the Town upon completion of Annexation 2A. This project would study the realignment of Hardy at Northern Avenue and remove the existing offset. Funding will come from HURF funds and is scheduled to begin FY 1996/97. Project 21: Replacement Service Truck 3,264 Rating Points Replacement required for service truck which has in excess of 140,000 miles. Funding sources will be HURF and CIP capital account. Currently scheduled for FY 1996/97. Project 22: AZAFIS Upgrade 3,242 Rating Points Provide immediate access to hard copies of fingerprints from the AZAFIS System through the Tucson Police Department State Site. System would provide immediate computerized fingerprint information and copies of fingerprints for comparison or identification. These are necessary for case follow-up investigations, warrant confirmations, and bookings. Printer paperstock, typewriter, and data phone link included. Funding will come from CIP capital Y account and Seizure Fund. Currently scheduled for FY 1997/98. Project 23: Lambert Lane Reconstruction West of La Canada 3,080 Rating Points Lambert Lane west of La Canada is signed for 35 miles per hour. This is due to the limited sight visibility as motorists approach the intersection of La Canada and Lambert Lane from the west. Reconstruction of Lambert Lane would allow for the continuous speed of 45 mph for the entire length of Lambert. This project will provide design, construction plans, and 34 cost estimates. Funding will come from HURF funds and is scheduled for FY 1996/97. Project 24: Blackstone Road Reconstruction 2,921 Rating Points Blackstone will be reconstructed to address pavement and drainage concerns. Schedule to begin in FY 1996/97 and funding source will be HURF funds. Project 25: El Conquistador Way Reconstruction 2,765 Rating Points This project will be for analysis, construction drawings and cost estimates for this roadway including repair of pavement damage and drainage concerns. Funding source will be HURF funds and is scheduled to begin in FY 1996/97. Project 26: Public Works Yard 1,883 Rating Points This project would relocate the Public Works yard from its current location in a residential area. This two phased project would consist of the purchase of ten acres of industrial land (none now exists in Oro Valley) and relocation of existing shop, fencing, mitigation, etc. Funding would come from a combination of the CIP capital account, HURF, and sale of existing property. Scheduled for FY 1996-97. Project 27: Covered Parking at Town Hall 1,083 Rating Points This project would cover approximately 75 of the 160 parking spaces at the Town Hall and Police Facility. Funding would come from the General Fund and is scheduled for FY 1996- 97. Project 28: Oro Valley Municipal Parking Building 0 Rating Points This project is for acquisition of the adjacent property to the north of Town Hall to locate a tiered parking garage designed so that it is built into the terrain (underground) so as to have the least negative impact to the area. Funding would come from the CIP capital account and is scheduled for FY 1997/98. 35 D. FY 1996-97 Capital Budget The Capital Budget represents the fiscal commitment to implement capital projects within the first year of the CIP. It has been determined that the Town of Oro Valley will be able to commit $1,390,000 from the General Fund. It should be noted that some projects will be financed over a period of years and there will need to be significant fund balances to ensure adequate funding to complete committed projects. It is hoped that additional revenues, cost savings in other areas, and alternate funding sources will allow the Town to commit additional financing toward the CIP in later years, but this is not an assumption that can be made at this time. The dollars that are in hand must be stretched the furthest. This makes the decisions in the first year critical, and also places the emphasis on creatively obtaining funds in the following budget years. As discussed earlier, Assumption Projects for the Capital Budget are those projects which were deemed essential for the Town to do business or already have a funding source. These projects have already been programmed into the financial projections in this document and no other capital projects will be considered until these projects have been provided for. A detailed description of these projects and their funding sources may be found in Appendix A: CIP Project Sheets. 36 1996-97 Capital Budget Assumption Projects Total Cost Al . Pavement Preservation $170,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A4. Honey Bee Canyon/Sausalito Wash Acquisition 1,500,000 A5. Catalina Shadows Roadway 1 10,000 A7. GIS Equipment and Software 26,000 A8. Drainageway Relocation/Safety Imp 45,000 A9. Copper Creek Park Land Acq. 900,000 A10. Dennis Weaver Park Land Acq. 450,000 Al 1 . Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades 150,000 A13. Rockridge Apartments Access Improve. 25,000 A15. Pool Car 10,000 A16. Departmental Vehicle 12,000 A18. Dennis Weaver Expansion 1,095,000 A19. Rancho Feliz Drainageway 200,000 A20. Marked Police Vehicles & Admin. Replacement 196,000 A21 . In-Service Training Equip/Community Serv. Prog. 13,500 A22. Street Improve - La Canada Dry. Lambert to Naranja 2,250,000 A23. Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 A24. Miscellaneous Traffic Signals 120,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 33,000 A28. Paved Parking Area - Calle Concordia Bldg. 25,000 A29. Short-term facilities planning - Modular Building 210,000 A30. Four Wheel Drive Vehicle 25,000 TOTAL $8,112,500 37 Assumption Projects Funded By CIP Capital Account Total Cost A7. GIS Equipment & Software 26,000 A8. Drainageway Relocation/Safety Improvement (Banked) 15,000 Al 1 . Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades 150,000 A15. Pool Car 10,000 A16. Departmental Vehicle 12,000 A19. Rancho Feliz Drainageway (Banked) 40,000 A20. Marked Police Vehicles & Admin. Vehicle Replace. 196,000 A21. In-Service Training Equip./Community Serv. Prog. 13,500 A24. Miscellaneous Traffic Signals 120,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 33,000 A28. Paved Parking Area - Calle Concordia Bldg. 25,000 A29. Short-term facilities planning - Modular Bldgs. 39,000 A30. Four Wheel Drive 25,000 TOTAL $856,500 Debt Service of Existing Projects Total Cost Street Sweeper 22,430 Certificate of Participation - Town Hall 181,195 Replenish Traffic Signal Installation Reserve 25,000 State Land Department 92!183 TOTAL $320,808 TOTAL ASSUMPTION PROJECTS AND DEBT SERVICE $1,177,308 CIP Capital Account Balance at Beginning of FY 1996-97 1,390,000 Total Committed Funds From CIP Capital Account (1,177,308) CIP Capital Account Funds Available 212,692 CIP Capital Account Contingency Fund (52,692) CIP Capital Account Traffic Signal Installation Reserve (25,000) Funds Available to Finance Prioritized Project $135,000 38 FY 1996-97 Recommended Funding of Prioritized Projects Project Impact on FY 1996-97 Capital Account Project 3: Lighting Upgrades - Dennis Weaver Park - This project cannot be funded by the Capital Account. 0 Project 5: Prisoner Processing/Release Area & Nighttime Walk-in - This project will be funded by the Capital Account. 65,000 Project 6: Calle Concordia Improvements -This project will not be funded by the Capital Account. 0 Project 7: Dennis Weaver Park Upgrades: Phase II - This project will not be funded by the Capital Account. Funding may become available next year through a state grant. 0 Project 8: Acquisition Adjacent Property - This project was partially funded by the Capital Account. 30,000 Project 10: Re-design Judge's Bench - This project will be funded by the Capital Account. 10,000 Project 11 : CDO River Park Trai l head Development - This project will not be funded by the Capital Account. 0 Project 12: Work Vehicles for Parks & Recreation Staff - This project will be funded by the Capital Account. 30,000 Project 13: Mobile Data Terminals - This project will not be funded by the Capital Account. 0 Project 14: Investigative Special Operations/Radio Repeater Purchase Site Rental & Installation - This project will not be funded by the Capital Account. 0 Project 15: Digital Tape Logger - This project will not be funded by the Capital Account. 0 Project 17: Community Policing Printshop -This project will not be funded by the Capital Account. 0 39 Project 18: Backhoe Replacement - This project will not be funded by the Capital Account. 0 Project 19: Front-End Loader Replacement -This project will not be funded by the Capital Account. 0 Project 20: Hardy/Northern Realignment - This project will not be funded by the Capital Account. 0 Project 21 : Replacement Service Truck - This project will not be funded by the Capital Account. 0 Project 23: Lambert Lane Reconstruction West of La Canada - This project will not be funded by the Capital Account. 0 Project 24: Blackstone Road Reconstruction - This project will not be funded by the Capital Account. 0 Project 25: El Conquistador Way Reconstruction - This project will not be funded by the Capital Account. 0 Project 26: Public Works Yard - This project will not be funded by the Capital Account. 0 Project 27: Covered Parking at Town Hall This project will not be funded by the Capital Account. 0 Total Prioritized Project Capital Account Disbursements in FY 1996-97 $135,000 40 E. Oro Valley Capital Improvements Plan: FY 1996-1997 Through FY 2000-2001 Following is a summary that constitutes the remainder of the proposed projects for the Oro Valley Capital Improvements Plan broken down by year. These projects will be evaluated each year upon resubmittal for review. FY 19 9 7-9 8 Al . Pavement Preservation $180,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A14. Copper Creek Park Development 745,000 A17. Street Improvement - La Canada Dr., Hardy to Linda Vista 331,000 A20. Marked Police Vehicles and Administration Replacement 245,000 A24. Miscellaneous Traffic Signals 120,000 A25. Bike Lanes for Naranja, La Cholla to La Canada 165,000 A27. Topographic Manning of Town 33 000 Total Assumption Projects for FY 1997-98 $1,929,000 P2. Street Improvement - Tangerine Rd., First Ave. to Monterra $100,000 P6. Calle Concordia Improvements 500,000 P12. Work Vehicles for Parks and Recreation Staff 15,000 P13. Mobile Data Terminals 50,000 P16. Street Improvement - La Canada Extension, Tangerine to Moore 250,000 P17. Community Policing Printshop 5,500 P20. Hardy/Northern Realignment 500,000 P22. AZAFIS Upgrade 16,500 P23. Lambert Lane Reconstruction West of La Canada 250,000 P25. El Conquistador Way Reconstruction 250,000 P26. Public Works Yard 500,000 P28. Oro Valley Municipal Parking Building 3,000,000 Total Prioritized Projects for FY 1997-98 $5,437,000 GRAND TOTAL FOR FY 1997-98 $7,366,000 41 FY 1998-99 Al . Pavement Preservation $190,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A6. Street Improvements - La Canada, Linda Vista to Lambert 600,000 A17. Street Improvements - La Canada, Hardy to Linda Vista 3,000,000 A20. Marked Police Vehicles and Administration Replacement 300,000 A24. Miscellaneous Traffic Signals 120,000 A27. Topographic Mapping of Town 34,000 Total Assumption Projects for FY 1998-99 $4,354,000 P1 . Street Improvement - Tangerine Rd., Monterra to La Canada $125,000 P2. Street Improvement - Tangerine Rd., First Ave. to Monterra 900,000 P9. Long-term Facility Construction 600,000 P13. Mobile Data Terminals 50,000 P16. La Canada Extension, Tangerine to Moore 2,250,000 Total Prioritized Projects for FY 1998-99 $3,925,000 GRAND TOTAL FOR FY 1998-99 $8,279,000 FY 1999-00 Al . Pavement Preservation $200,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A6. Street Improvement - La Canada, Linda Vista to Lambert 5,572,000 A20. Marked Police Vehicles and Administration Replacement 370,000 A24. Miscellaneous Traffic Signals 120,000 Total Assumption Projects for FY 1999-00 $6,372,000 P1 . Street Improvement - Tangerine Rd., Monterra to La Canada $1,200,000 P4. Street Improvement - First Avenue, Oracle to Tangerine 600,000 P9. Long-term Facility Construction 400,000 Total Prioritized Projects for FY 1999-00 $2,200,000 GRAND TOTAL FOR FY 1999-00 $8,572,000 42 FY 2000-01 Al . Pavement Preservation $210,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A20. Marked Police Vehicles and Administration Replacement 450,000 A24. Miscellaneous Traffic Signals 120,000 Total Assumption Projects for FY 2000-01 $890,000 P4. Street Improvement - Fist Avenue, Oracle to Tangerine $6,250,000 Total Prioritized Projects for FY 2000-01 $6,250,000 GRAND TOTAL FOR FY 2000-01 $7,140,000 43 V. IMPLEMENTATION The success of a plan or a planning process is measured by the success of its implementation. It is critical that Oro Valley seriously plan and prudently allocate financial resources in accordance with the Oro Valley Capital Improvement Plan. The strategic planning process utilized in the development of this first CIP was difficult to initiate but resulted in an objective process and a community-wide team approach. The following is a discussion of how the Oro Valley Capital Improvement Plan shall be implemented and monitored. A. General Guidelines Adoption - The Oro Valley CIP five year program capital budget shall be reviewed by the Planning and Zoning Commission and adopted by the Town Council. Upon adoption, the Oro Valley CIP will be published and widely distributed. The Oro Valley CIP will be annually updated, reviewed by the Planning and Zoning Commission, and adopted by the Town Council by March of each year. Capital Budget - The capital budget will be used in developing the annual Town budget. The capital budget of the Oro Valley CIP will be the foundation for capital expenditures for the FY 1996-97 Town budget. Quarterly Reports - Department Heads are responsible for preparing quarterly reports on the status of capital projects in the first year capital budget. The reports shall be made to the Town Manager and the Finance Director shall document the status. The Town Manager shall make a report to the Town Council quarterly, or more often if deemed necessary, on the status of the CIP. Technical Advisory Committee - The Technical Advisory Committee, which is comprised of citizens, a utility representative, a council representative, department representatives, board and commission representatives, and town staff shall reconvene three months prior to the adoption of the CIP each year. The purpose of the TAC will be to identify new capital projects to be added to the CIP, review and/or modify of evaluation criteria, evaluation of CIP projects, and production of an updated CIP. The Town of Oro Valley may want to utilize an outside facilitator each year during the project evaluation process to ensure objectivity and consistency in ranking of the projects. (See B. Implementation of the Decision Making Matrix below for more detail) Public Involvement - Citizen involvement should be sought in future updates of the plan. This involvement could entail participation at Town Hall meetings, community surveys, public hearings, focus group meetings, membership on the TAC, newspaper articles, etc. 44 B. Implementation of the Decision Making Matrix Updating the OP shall take place annually before the creation of the annual budget document. The Technical Advisory Committee (TAC) shall work as a team to evaluate the projects. The Decision Making Matrix will then be used to prioritize the projects. It should be noted, that some projects will not proceed all of the way through the process. Routine acquisitions, such as police car replacement, may be considered as "Assumptions" and will automatically pass into the proposed budget year as a priority. Also, Projects which are deemed necessary and have received substantial funding from an outside source could be considered as "Assumptions" at this time. These decisions will be made by a consensus of the TAC. The following is the process for carrying out this phase of the Capital Improvements Plan: Step 1: Re-visiting of the Evaluation Criteria. The TAC shall meet to discuss the Evaluation Criteria. At this meeting, it will be decided if the criteria used the previous year are still appropriate to the Town's current situation. Influences from both inside the Town and from external forces could necessitate the elimination, change, or addition of evaluation criteria. After the Evaluation Criteria are agreed upon, the TAC must then analyze the Numerical Weighting Factor given to each criteria. It is the purpose of this factor to prioritize the Evaluation Criteria in order of importance. Factors such as, citizen's changing attitudes and/or governmental mandates may force a change in the Numerical Weighting Factor. When the Evaluation Criteria and their appropriate Numerical Weightings have been agreed upon by the TAC, any changes must be presented to the Town Council for approval before the process can proceed. Presenters to the Council should have the ability to substantiate any changes with factual data. Step 2: Creation of New and Re-evaluation of Existing Project Sheets Project Sheets will be submitted by Department Heads to the TAC for evaluation. Additionally, any projects which were submitted in a previous year(s) and are still considered needs, should be updated and re-submitted. Any changes to the status of the project (i.e. new funding source found, change in departmental priority, etc.) should be included on the Project Sheets to ensure proper evaluation. Department Heads are encouraged throughout the year to aggressively pursue new avenues to enhance the feasibility of projects. Project Sheets must contain the following information to be considered for evaluation: 45 1 . Project Name and Department. 2. Description of the Project and why it is necessary. 3. Time line of the proposed Project. 4. Project Budget tied into the time line. 5. Potential and/or existing funding sources. Step 3: Determining the Capital Budget The Town Finance Director shall determine the amount of funds that can be placed in the CIP Capital Account for the pending year. Funding for additional projects can only be allocated after all projects currently underway are accounted for. Step 4: Committee and Department Head Meetings All Assumption Projects which have dedicated annual funding (vehicle and equipment replacement programs, maintenance programs, etc.) shall have a committee formed to evaluate the best use of the next year's funding. A report of recommendations shall be submitted to the entire TAC for review and discussion at the Project Evaluation Meeting. Step 5: Evaluation of Projects by the Technical Advisory Committee The TAC shall evaluate all new and re-submitted Project Sheets. Each Project will receive a score from 0-10 in relation to each of the evaluation criteria. The projects will then be given a numerical total and placed in order of priority on a report named CIP Prioritized Projects. This prioritized list will the be broken down into another report named CIP Prioritized Projects - Proposed Funding by Fiscal Year. Step 6: Creation of Fiscal Year Capital Budget After the projects have been prioritized and reports distributed to the TAC, a meeting will be held to determine the Fiscal Year Capital Budget. This budget will recommend which projects should be funded in the next year. The following steps must be taken to evaluate and finance the projects: 1 . All Assumed Projects must be funded first and deducted from the Capital Budget. 2. If there are more funds available for Capital Projects, the TAC must then use the CIP Prioritized Projects List to determine which project(s) should be funded. 3. The highest priority project on the CIP Prioritized Projects List must then be identified. These questions need to be asked: Are there other projects rated higher that will be competing for the same funding source in later years? If so, should this money be banked for these projects instead of being spent on 46 this year's top priority? Does this project need to be completed as a preamble to a higher rated project in the future? Is there a financing alternative that could be combined with a higher rated project, which may be a better way to fund the project? If it is determined that the year's top priority project is financially feasible and will not jeopardize the ability to fund future projects which are rated higher, the Project may be included in the Capital Budget of that year. Should funds remain at this point, the second highest rated Project from the CIP Prioritized Projects List shall be examined in the same fashion. This procedure shall continue until all of that year's Capital Fund has been exhausted or allocated to fund future projects, or if all projects have been funded. Any excess funds will be held for the next year's Capital Budget. Step 7: Disposition of Unfunded Projects In most cases, there will be quite a few projects that do not make it into the Annual Capital Budget either because there is not adequate funding or they have not come out of the Decision Making Matrix with a high priority. These Projects may be updated and re- submitted for the next year, or subsequent years, when the TAC Evaluation Process begins for the next Fiscal Year. Step 8: Annual Review of the Capital Improvements Plan Update the five-year CIP by adding or revising capital projects and adding an additional fiscal year and a new Capital Budget for the first fiscal year. The updated CIP is presented to the Planning and Zoning Commission for review and to the Town Council for review and adoption. 47 TOWN OF ORO VALLEY CAPITAL IMPROVEMENTS PLAN FEBRUARY, 1996 o � pA,LE Y CZ' 4/� s• 4 . 1 A•rl, A(3�� TOWN OF ORO VALLEY TOWN COUNCIL FISCAL YEAR 1996-97 CHERYL SKALSKY Mayor PAUL PARISI Vice-Mayor BILL KAUTENBURGER Councilmember RUDY ROSZAK Councilmember MARTY WELLS Councilmember Table of Contents I. Introduction 1 A. What is a CIP? 3 B. CIP Evaluation Criteria 3 C. Glossary of Terms 8 II. Public Participation 12 III. Financial Issues 13 IV. Oro Valley CIP FY 1996/97 Through FY 2000/01 17 A. CIP Assumptions and Policies 17 B. CIP Assumption Projects 21 C. CIP Prioritized Capital Projects 28 D. FY 1996/97 Capital Budget 36 E. Oro Valley Capital Improvements Plan: FY 1997/98 - FY 2000/01 41 V. Implementation 44 A. General Guidelines 44 B. Implementation of the Decision Making Matrix 45 j �. 111 Acknowledgments The following persons were instrumental in the preparation of the Town of Oro Valley Capital Improvements Plan: Town Council: Mayor Cheryl Skalsky Vice Mayor Paul Parisi Councilmember William N. Kautenburger Councilmember Rudy Roszak Councilmember Marty Wells Oro Valley Technical Advisory Committee David Andrews, Finance Director, Finance Department Rachael Bartels, Administrative Assistant, Town Manager Department Gary Chandler, Parks and Recreation Advisory Board Don Chatfield, Planning and Zoning Director, Planning and Zoning Department Diane Cotter, Court Administrator, Magistrate Court Thomas Davis, Planning and Zoning Commission Dick Eggerding, Arts Advisory Board Joanne Homer, Civil Engineer, Public Works Department Bob lannarino, Public Participant The Honorable Bill Kautenburger, Town Council Kevin Kish, Senior Planner, Planning and Zoning Department Ken Lawrence, Parks and Recreation Administrator, Parks and Recreation Division Charlie Lentner, Police Lieutenant, Police Department Bob Maassen, Building Official, Building Safety Department Patti Morris, Public Improvement Coordinator, Tucson Electric Power Mary Rallis, Accountant II, Finance Department Chuck Sweet, Town Manager. Town Manager Department Richard Underwood, Development Review Board Facilitator Anne C. Warner, ACW & Associates 1 a 41 F.. Z x+ 01-+ 3C7 F+ oGE 0 0 0 -- - O U Q O a , � oc°n >• a a ..a 0-+ QG H tz.0 Q U3 1.4 Q E-.*-4 W U. 410E-4 0 X41-4 is.C3 H w z0 E.. w �u �N � � ��H VoaD w E• Z Z cn ZMZ a0 1-4 0 --� 0 G 0 > H oau 0 ' Z CX EN �4Z 0 43a EE. Z Z3Z 63 400 Cg Z 0 1.4 Z O . H .-+H P ZZ E. C � wHOEC 4wEE. a N p..4E1..4 Or la .,..,2 oca.a --■ E.0 0 cn.a= pi ^U .a c>0 w ›'' u a W �i, CA 1 Z .3 0 E~ •-- c) O 0 cn Z ›p O ,..! ��� a u�w oo �OO CO �i-4 cza CA ,., 7 z. . > . ,.... . ,. . 0 cn O E"' Z CI a o >4Za i'll o 63 63 E03 a4 a a.1ix 7 Oft 0 3 Z W E. 3 0 ..aw o aUn o 43 1.4 6.4 CI E-••4 ww 4a` 0� oa aoa �o u apt CYa w w� O U 0 U)> 7 -8 5 z sa ...0 as oZ a N O 0cn 3 W ,Z-•Z 7 HV E Z I U +■. ow • In 0 a 1111 111 I THIS PAGE INTENTIONALLY LEFT BLANK ■ 111 I. INTRODUCTION Providing infrastructure is a primary function of local government. Maintaining public safety, town services, parks and recreation facilities, an adequate transportation system, and the community's quality of life are all items heavily dependent on how the organization deals with infrastructure issues. The Town of Oro Valley is at a critical point in its development. Oro Valley is home to an established 19,587 residents, based on a mid-decade special census completed in November, 1995 (not yet finalized by the U.S. Census Bureau). The community has experienced a growth rate of 194% since the last census in 1990. This growth rate is due to annexation and tremendous development of single family homes. This type of dramatic growth makes it difficult for the Town to keep pace with necessary services and infrastructure. The community will continue short term rapid growth based on a strong residential housing market in the northwest Pima County area. The Town needs to ensure that there is orderly development and efficient use of public facilities. Oro Valley is faced with a serious dilemma in the provision of public services. Not only is the community being faced with new developments that require infrastructure improvements and public service, but the community is continually trying to catch up, particularly in the area of street improvements. The provision of public services to a growing community presents a great challenge to the Town of Oro Valley. As new developments are built, the infrastructure required to support these developments must be constructed to keep pace with the new demand for services. Determining the type, location, size, phasing, cost, and financing of infrastructure development requires a comprehensive and long-range planning perspective. The Town of Oro Valley is ultimately responsible for providing public service to existing residents and businesses as well as, the future residents, and businesses. The Town's rapid growth poses several complex and challenging issues: Police Protection - As citizens move to, or are annexed into the community, more officers and support staff will be needed. Along with this additional staff, equipment and vehicles will need to be purchased. It is anticipated that for each 1 .5 officers hired, a new police vehicle will need to be obtained. This is on top of the already expensive process of keeping the current fleet modern and in good, reliable working order. The newly constructed Police Department Facility should serve the needs of the department for many years to come provided that the department will be decentralized and sub-stations or store fronts will be constructed or leased. To the Town's credit, the current police building was constructed without any debt. Streets -There are in excess of 150 lane miles of public streets within the town limits. $20 million worth of asphalt must be maintained within the town. There is also a need to 1 improve the capacity of the major roads. The newly initiated development impact fee ordinance will help with future road improvements. Due to the high cost of these projects and the current budget constraints, these types of progressive financing vehicles must be utilized. According to the General Plan, there are $60 million of road improvements rovements that "` g p need to be done by the year 2010. The CIP must address how we finance these improvements. Bike lanes and raised pavement markers must be considered when road improvement projects are considered. Town Hall/Staff Housing - Although the current Town Hall is new and one of the nicer in the State of Arizona, recent explosive growth has already caused some departments to become cramped. More staff will be needed to service the growing number of residents. The thought of having to build more administrative facilities before the existing buildings are paid off is not an attractive one. However, it may be essential if the Town is to maintain current service levels. A Space Needs Analysis has been done that projects office space needs in the future. At the projected rate of growth, another 6,500 square feet of office space is required to house the number of town staff needed in the future. Land Issues - For a Town the size of Oro Valley (28 square miles), Town owned land resources are negligible. The need for parks and recreational facilities, future buildings for administration and public safety, and other community amenities is not going to go away. The Town Council must face this issue head-on and come to consensus on a realistic game plan to obtain additional land. Putting this issue on the back burner will ultimately force the Town into a desperate situation - land either unavailable or totally unaffordable. The Town of Oro Valley's Capital Improvements Plan (CIP) is a multi-year plan that projects spending for all anticipated capital projects. The CIP addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate future growth. The CIP links the Town's planning and budgeting functions. It also looks at competing needs for infrastructure and determines how much money the community can afford to spend on them. The Town of Oro Valley took a very unique approach to the development of the community's CIP. Oro Valley utilized a strategic planning approach that involved using all Town departments and management staff. The process required all Town departments to re-assess their plans and overall goals for capital improvements and the means for accomplishing them. A very important step in any strategic planning process is the identification of the overall purpose of the process. The development of a Mission Statement answers the question. "What are we trying to accomplish with the CIP?" The following is the Oro Valley CIP's Mission Statement. "To define five year capital improvement priorities and financial feasibility by creating a process and producing a document that responds to public desires and needs." 2 A. WHAT IS A CIP? A Capital Improvements Plan is a multi-year plan that projects spending for all anticipated capital projects for the Town. The Plan addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate the current needs as well as future growth. The CIP links the Town's planning and budgeting functions by providing a separate policy document to address the Town's capital needs. The CIP looks at competing needs for infrastructure and determines how much money the community can afford to spend on them. There are five basic components to the CIP: 1 . Infrastructure inventory which identifies existing infrastructure. 2. Needs assessment which identifies all needed and planned community infrastructure. 3. Financial analysis and determination of options and projected costs. 4. An infrastructure plan that programs infrastructure by year for a five year period. 5. A capital budget for the first year of the CIP. CAPITAL PROJECTS DEFINED Capital Projects are defined differently from community to community. They can be defined very broadly or narrowly. For the Oro Valley CIP, the following definition of Capital Projects will be used to describe which projects are to be included in the CIP: Cost over $10,000, have an expected useful life of two years or more and becomes an asset of the Town. The only exception to this definition will be police patrol units which may have a useful life of less than two years but will still be considered Capital Projects. B. ORO VALLEY CIP EVALUATION CRITERIA One of the most important requirements for an effective selection process is the establishment of clearly defined, pre-specified criteria upon which the assessment and subsequent selection of capital projects will be based. The evaluation criteria become the guidelines for the capital improvements decision making process. They were determined "up front" in the process to allow objective decisions to subsequently be made. Clearly written policies make capital allocation decisions easier. Most decision makers intuitively have such policies in mind but seldom put them in writing. Each year, discussion of the policies begins the CIP process. This usually results in changes to the policies which reflect changes in priorities. The evaluation criteria are selected on the following basis: 1. They refer to issues important to local governments inasmuch as ignoring 3 them could have potentially serious consequences. 2. They refer to items generally measurable in one form or other. 3. They are realistic. 4. They permit at least some degree of objectivity in ratings. 5. Most importantly, in their generic form, they represent criteria applicable to a wide variety of capital projects. The Oro Valley Technical Advisory Committee has selected the following ten criteria for use in the formation of the Capital Improvements Plan. Since some criteria are associated with more critical operations of the Town, each criteria has been assigned "Weighting Points". For instance, Criteria 1 : Public Health, Safety, and Welfare (97 Weighting Points) will have a greater emphasis than Criteria 10: Environmental Impact (58 Weighting Points) when the capital projects are evaluated. Every project is evaluated against these same criteria and weightings. This assures the most objective process possible and leads to consistent decision making. EVALUATION CRITERIA 1: PUBLIC HEALTH SAFETY, AND WELFARE 97 Weighting Points • How does the project improve the health and safety in the community? • Does the project specifically address a health or safety problem within the community? EVALUATION CRITERIA 2: FISCAL IMPACT111 91 Weighting Points • Is the project a negative or positive impact on town revenues? • Does the request bring in additional outside funds in some proportion? • Is there a strong probability that other sources of funding other than local revenues can be found? • Does the request generate a large recurring impact on the operating budget? • Are budget figures and cost estimates contained in the request realistic and appropriate? • Is the project realistic from a financial standpoint? 4 • Are funds already dedicated or available for the project? • Is the project timely or does it provide a critical "window" of opportunity? EVALUATION CRITERIA 3: ECONOMIC DEVELOPMENT IMPACT 80 Weighting Points • Does the project positively impact on local economic development efforts? • Does the project promote economic growth? EVALUATION CRITERIA 4: IMPACT ON OPERATION AND MAINTENANCE 76 Weighting Points • What impact does the project have on current town operations? • How does the project impact maintenance? Does it require extraordinary maintenance costs? • Is the project doable from an operations and maintenance standpoint? • Will the project improve the efficiency of town staff? EVALUATION CRITERIA 5: IMPACT ON SERVICE LEVELS 73 Weighting Points • How does the project positively or negatively impact current service levels? • Does the project bring the town up to a required service level? • Does the project meet service level deficiencies? EVALUATION CRITERIA 6: ENVIRONMENTAL IMPACT 71 Weighting Points • Will the project positively effect the environment? • Will the project help the town to deal with an environmental issue/problem/mandate? • Does the project help to promote and/or protect the town's natural 5 environment? • Does the project help to protect the town's sensitive desert environment? EVALUATION CRITERIA 7: PUBLIC DESIRE 69 Weighting Points • Has the project been specifically identified by the public in a previous community forum, surveys, etc.? • If the request is to expand or enhance an existing service, to what extent is 111 the need for the expansion demonstrated? • If the request is to provide a new service, to what extent is the need for the new service demonstrated? • Have citizen groups provided input or expressed a need for the request? • How does the project support community needs? EVALUATION CRITERIA 8: IMPLEMENTS LOCALLY ADOPTED PLANS N 68 Weighting Points • Does the project work to implement current adopted local plans? • Is the project a part of or consistent with an articulated, acceptable mid-or long-range program? • Does the request implement some or all of the recommendations of a previous study? • Does the project have high, medium, or low departmental priority? EVALUATION CRITERIA 9: LEGAL RAMIFICATIONS 65 Weighting Points111 • Does the project increase or decrease the town's exposure to liability actions? i • Is the project required to address a federal, state or local mandate? • How does the project meet local regulations? 1116 EVALUATION CRITERIA 10: RELATIONSHIP TO OTHER PROJECTS/COORDINATION 58 Weighting Points • How does this project relate to other projects underway? • Can the project be effectively coordinated with other projects? i.e. water and/or sewer line repairs done in conjunction with road work • Is there another project that has to be completed before this project can be done? • What is the duration and severity of possible disruption and inconvenience to the public during construction of the project? • Are their additional costs associated with providing alternate or temporary services during construction? The Oro Valley CIP represents a five-year Capital Improvement Program totaling $42,685,200. While this is an imposing figure, it is anticipated that many of the proposed improvements will be funded with outside sources, such as grants, Development Impact Fees, matching funds, and donations. The CIP is prepared in order to plan for and meet the future needs of the residents of Oro Valley. In order to provide effective services, it is necessary to plan capital improvements well in advance. The first year this CIP represents the FY 1996-97 capital budget needs for the Town of Oro Valley. It is important to note that the CIP is intended to be a plan and a process rather than a budget, therefore projects may be altered in succeeding years. For example, some projects may be implemented earlier while others could be deferred when priorities and funding sources change. bh 1 111 C. GLOSSARY OF TERMS The following is a Glossary of Terms to be used in reviewing the Oro Valley Capital Improvement Plan. The terms are used throughout the document and are important in the e infrastructure planning process. Assumption projects - Projects which are deemed absolutely essential to the operation on of the Town, ongoing operating capital purchases which replace existingequipment p outlined by the departmental equipment replacement program, ro'ects which have 1 designated funding for all or a majority of the project. These projects will receive priority funding from the CIP Capital Account and will not go through the1 ro'ect evaluation matrix. p Bond - A written promise to pay (debt) a specified sum of moneyprincipal(called principal or face value) at a specified future date (called the maturity date(s)) alongwithperiodic interest paid at a specified percentage of the principal (interest rate). Bonds are typically used for long- term debt. Capital Account/Budget -The capital budget is the approved fiscal commitment to develop capital projects within the current fiscal year and appears in the annual financial plan. Capital Improvement Plan - The Capital Improvement Plan (CIP) is a comprehensive five- year plan of capital projects which identifies priorities as to need, method of financing,ting, and cost and revenues that will result during the seven years. Theplan is aguide for identifying . tifying current and future fiscal year requirements and becomes the basis for determining g the annual capital budget. The CIP is reviewed, updated and annuallyadopted . p by the Town Council. Capital improvement policies - Locally accepted policies that identifytheof amount funds to be expended annually through budget and borrowing as well as terms and conditions g for obligating those funds. These policies also outline how the Town does business in dealing with infrastructure planning. Certificate of Participation (COP) - Obligation of a public entitybased on a lease e or installment sale agreement. Community Development Block Grants(CDBG) -Arizona Department of Commerceg rants to communities which can be used for a wide range of activities including infrastructure,rehabilitation, economic development, planning and public services. Exact activity must either principally: benefit low and moderate income persons, prevent or eliminate slums or blight or, meet other urgent community needs. Credit ratings - An independent rating service's evaluation of the credit worthiness of notes and bonds. Ratings influence the cost of borrowing. 8 Debt - Funds owed as a result of borrowing. Debt financing - The financial policy of borrowing capital to develop a public facility and pay off the debt over a set number of years. Debt service - The amount of funds needed to pay principal and interest on outstanding bonds for a given year or series of years. Development Impact Fee Ordinance (DIFO) - A town ordinance that requires a monetary charge on development to recoup a proportionate share of the public capital costs required to accommodate that development with necessary public facilities. Discretionary revenues - Revenues that are not obligated for particular expenditures. Financial analysis - A study of the cash flow and financial capabilities of a jurisdiction to determine its funding capacity and fiscal health. Fiscal Year (FY) - The Town's business year beginning July 1st and running through June 30th. General Obligation (G.O.) Bonds- A bond secured by the pledge of Oro Valley's full faith, credit, and taxing power. General Fund- Discretionary funds that are not specifically earmarked for a project and may be used for the Town's operations. Grants - This funding source includes State and Federal grants. Heritage Fund-Arizona State Parks matching grant programs for acquisition or development of public outdoor recreation areas and facilities. Highway Users Revenue Fund (HURF) - Established by state legislation and is administered by the State Department of Revenue. Revenue for the fund is derived from gasoline tax, truck weight fees, and various license fees imposed on motor vehicles. Infrastructure - Public support structures such as roads, street lighting, and water lines/facilities. Impact fees- Monetary payments made by builders or developers to defray the public costs of providing infrastructure to a development. Improvement District - An area of the community where infrastructure improvements have been made and are being paid for by the citizens who directly benefit from the improvements over a period of years. 9 Lease payment - The rent or service fee paid for the use of a facility. Lease purchase-This method of financing allows the Town to construct or acquire property and pay for it over a period of time by installment payments rather than an outright purchase. The time payments include an interest charge which is typically reduced because the recipient does not have to pay income tax on the interest. Long-term debt - Borrowed funding with a maturity of at least one year. Local Transportation Assistance Fund (LTAF) - Funds generated from the Arizona State Lottery and are earmarked for transportation purposes to towns and cities in Arizona. The LTAF is distributed to cities based on the percentage of population. Matching requirements - The Town's contribution to a project or function required by a funding source as the basis for the funder's contribution. Matching requirements are q frequently imposed as a proportionate share of the overall contribution. Operating budget - The planned expenditure of funds, excluding capital expenditures, for operations, i.e., salaries, routine maintenance, and supplies. 1111 Operational Capital - Funding made available for the overall day to day operations of the Town, such as lease purchase programs for Police Department vehicles. Pay-as-you-go-The financial policy of capital outlays from current revenues rather than from borrowed funds. Property tax - The traditional system of local taxation under which owners of property pay taxes based on the value of their property. Public facilities - Facilities, such as libraries, civic centers, and police and fire stations sponsored by the locality for public use and service. Public/Private ventures - Cooperative projects in which both the public and private sectors contribute to the development, operation, and use of a facility. Public utilities - Basicubl is services such as water, electricity,y, and telephones that may be provided by either the public or private sector but that are publicly regulated to provide widespread service and to protect the public interest. Rated projects - Projects which are rated by the Decision Making Matrix and placed in their prioritized order. Revenue bonds -A bond payable solely from revenues derived from tolls, charges, or rents paid by users of a facility constructed with the proceeds of the bond issue. For example, 10 parking fees often pay off a bond used to construct parking facilities. Service levels - The amount or standard of service Oro Valley provides to its citizens. Special assessment districts - Charges assessed against properties in a limited area in exchange for special benefits conferred by a public improvement in the same section of the community. Special taxes - Usually voter-approved taxes whose revenues are designated for a particular project. Strategic planning - The planning process used to capitalize on currently optimum needs and opportunities. Taxable bonds - Municipal bonds whose interest earnings are subject to federal income taxation under the Internal Revenue Code. Tax base - A community's total property, resources, and wealth subject to taxation. Tax-exempt financing - The financing of a project through the use of bonds that exempts bondholders from taxes on interest earned from the bonds. Transfer payment - Gifts of money from one government entity to another, typically from the federal or state government to a local government. User charge - A fee imposed on facility or service users for upkeep and operations. Useful life - The number of years a facility or capital item is expected to last before it must be replaced or undergo major renovation. 11 THIS PAGE INTENTIONALLY LEFT BLANK II. PUBLIC PARTICIPATION The Technical Advisory Committee (TAC) was formed by the Planning and Zoning Director. The committee consists of citizens, a utility representative, a council representative, department representatives, board and commission representatives, and town staff. The TAC held several meetings to develop the CIP for Fiscal Year 1996/97. The first TAC meeting focused on establishing the evaluation criteria for Fiscal Year 1996/97. The TAC decided to use the same evaluation criteria as last year, with the addition of a new one. The economic development impact criteria was added to the list of evaluation criteria and given the number three ranking with a weighting of 80 points. A public forum was held to give the public an opportunity to voice their ideas and opinions on the CIP process and to have their questions answered. The next TAC meeting was held to rank the projects submitted by the departments. The TAC decided on the projects that should be assumption projects or ranked projects and eliminated projects which were determined not to be capital projects. The assumption projects are the projects that the TAC considered to be essential to the operation of the ' Town. The remaining projects were ranked according the evaluation criteria. The final meeting was held to determine the funding necessary for the assumption and ranked projects. The meeting included recommended funding of the projects. The TAC recommended that a committee be formed consisting of TAC members to review the funded projects on a quarterly basis for FY 1996/97. The committee would be involved in the planning stages of next years CIP process. 1 12 1 1 THIS PAGE INTENTIONALLY LEFT BLANK r 1 1 1 III. Financial Issues When considering what resources are available to fund needed infrastructure improvements, it is important to carefully examine the current funding situation as well as all possible p financing alternatives. Like most communities, the Town of Oro Valley has determined that current revenues are inadequate to fund all of the projects in the CIP. In developing the CIP, a comprehensive review of all financial resources that might be available to meet current and future infrastructure needs was done. The purpose of this Chapter is to discuss financial issues related to infrastructure planning. Current Town Funding The Town of Oro Valley has been funding Capital Improvement Projects for years. However, up until last year (FY 1995/96) the funding has never been done in a systematic, organized fashion. One of the keys to a successful Capital Improvements Plan is consistent, systematic funding. The following financial data is necessary to determine the Town's ability to finance future capital projects based on current and projected revenues, current expenditure commitments, and projected future expenses to do business. The following options were considered when analyzing potential funding sources for CIP Projects: 1. Pay as you go out of current revenues 2. Borrowing, which could include issuance of bonds 3. Certificates of participation, paid back by town revenues 4. Lease purchase agreements 5. Improvement districts, where residents who benefit from the improvements pay for them over time. 6. Development Impact Fee Ordinances where developers are obligated to pay for a portion of the infrastructure needed to service their projects. 7. Federal and State Grants 8. Donations, volunteer efforts, intergovernmental agreements 9. User fees 111 Current Situation: Oro Valley will have a $1,371,668 million surplus at the end of FY 1995-96. Town revenues are heavily dependent on local sales tax, residential building permits, and state shared revenues. Much of this income is directly related to rapid housing development. The challenge for the Town will be to develop funding sources to replace • this income when a slow down in housing development inevitably comes. 13 Non construction retail sales tax revenues, other than those related to the tourism industry, have been relatively weak. This can be attributed to not only retail leakage to the Tucson Area, but the fact that a large portion of the local retail sales is in non-taxable food items. Sales taxes are unstable and are not a recommended funding vehicle for capital improvements. State Shared Highway User Revenue Funds of $752,000 should remain at or above this level. Most communities utilize a portion of this fuel tax to pay for administration in the Public Works Department. The intent of this fund is to pay for road improvements and equipment. Currently, Oro Valley spends a high percentage of its HURF funds to pay for maintenance. In fact, quite a bit higher than many Arizona communities. The coming years are going to place more stress on the area's roads. Additional HURF funds are going to be needed for materials and equipment. The FY 1995-96 budget contains $1,479,472 allocated for capital outlays. Budget projections do not show an ability for the Town to make this large of a contribution to the CIP on an annual basis. As the community grows, staffing issues and operating costs are going to place additional pressure on the budget. After careful review, it was determined that the FY 1996-97 contribution to the capital p account would be $1,415,300. This figure includes funding of $1,119,492 for all capital projects, vehicle and equipment replacement programs, and street projects, plus debt service of $295,808 on projects from previous years. I Current Long Term Debt The Town of Oro Valley is in a unique position for a growing community in that it is relatively debt-free. Lease purchase agreements have been sparingly used to purchase equipment and spread the payments out over a period of years. The only current lease purchase agreement is for a street sweeper. The annual debt service on this equipment is $22,430. The agreement will be paid off in two years. The Town has a note outstanding for the purchase of a 40 acre parcel of land. The annual debt service payment is $92,183. A final balloon payment of $835,244 is due June 29, 2000. The Town has also utilized a Certificate of Participation to finance the current Town Hall facility. The debt service on the certificate is $181,195 for FY 1996/97. The total long term debt outstanding principal will be $1,847,093 as of June 30, 1996. This figure includes $360,000 in assessment district debt. 14 Current Bonding Capacity Although it is the goal of the Oro Valley CIP to finance projects without borrowing (pay-as- you-go), some projects may need to be financed. Oro Valley is at a disadvantage in this area because currently there is no additional Town property tax. While the majority of citizens have indicated a desire to keep it that way, it is very difficult to create the community amenities residents are desiring without one. General Obligation (G.O.) Bonds are the most common and inexpensive way to finance large community projects. G.O. Bonds are based on the full taxing authority of the municipality and are therefore, quite safe for the investor. This safety makes the bonds attractive and allows lower interest rates to be paid. Since the Town's only taxing authority is on discretionary items (sales tax, bed tax, etc.), the choice of financing mechanisms is limited. However, at some point, the citizens of Oro Valley may choose to finance needed capital projects. Before planning to finance future capital improvements through borrowing, it is important to know how much credit is available. The State of Arizona places limits on the amount a municipality can borrow or bond. This is reflected as the bonding capacity (or credit line) of the municipality. The following are the parameters that the Town of Oro Valley must utilize in determining their bonding capacity. 1. Based upon a secondary assessed value of $119,234,229 on June 30, 1995. 2. Under Arizona Law, municipalities may issue general obligation bonds for specific purposes such as water, waste water, artificial light, open space preserves, parks and recreational facilities up to an amount not exceeding 20% of the secondary assessed value. This would allow the Town of Oro Valley to bond for an amount of $23,846,845 3. Under Arizona Law, municipalities may issue general obligation bonds for general municipal purposes up to an amount not exceeding 6% of the secondary assessed value. This would allow the Town of Oro Valley to bond for an amount of $7,154,053. Bonding Alternatives Many communities utilize the issuance of bonds to pay for large capital projects that cannot be financed by current reserves. The Town of Oro Valley has never taken this route, but it is likely that some of the needs outlined in the Capital Improvements Plan will not be met without incurring some form of long term debt. An example of how the citizens of Oro Valley might benefit from bonding is the current parks and recreation situation. For a community of 19,587 people, amenities in this area are quite scarce. The Town could begin to save for these projects out of current revenues today. To accumulate the millions of dollars needed to develop the facilities would take 15 . many years. In addition, by the time the money had been accumulated, land may not be available or be too expensive. U The bonding alternative would allow the facilities to be furnished now, at today's prices. The children and adults who are current Oro Valley residents would be able to enjoy the amenities now. The saving method places the burden on these people without the guarantee that they will be here to reap the benefits. Any bonds issued by the Town are subject to a vote by the people. The bonds would be paid off over a period of years by the citizens of the community. A common practice by many communities is to offer a bond "package". The package contains several alternatives for the voters to consider. An example of a package that Oro Valley could offer would be: Issue 1. Dennis Weaver Park Upgrades and Expansion Issue 2. Copper Creek Park Development (land acquisition and facilities) Issue 3. Raw Land for Future Public Facilities Voters will have the opportunity to approve a current bond request at the March 12 election on none, some, or all of the issues. Note: A general obligation bond election is being held on March 12, 1996. The bond election places five separate questions on the ballot for voter considerations. Question 1 Bonds for Parks and Recreation Facilities $6,445,000 Question 2 Bonds for Honey Bee Canyon $3, 120,000 Question 3 Bonds for the Preservation of Natural Sonoran Desert $2,015,000 Question 4 Bonds For Bicycle Lanes and Bicycle Paths $1,510,000 Question 5 Bonds for Equestrian and Multi-Use Trails $1,005,000 The total combined amount of the bonds is $14,095,000. Voters will have an opportunity to approve all of the questions, none of the questions or any combination of questions. le 16 IV. Oro Valley CIP FY 7996-97 Through FY 2000-2001 The Oro Valley Capital Improvements Plan (CIP) identifies needed capital projects and XXI programs them by fiscal year. The CIP looks at competing needs, costs and potential funding sources. The CIP process and plan resolves the political choices about what to build or buy, where and when to build or buy it, and how much to spend on it. ;ir The Oro Valley CIP is a five year plan that projects spending for all anticipated capital projects. The plan addresses both repair and replacement of existing infrastructure as well as the development of new facilities to accommodate future growth. The FY 1996-97 Capital Budget will be submitted as the capital outlay portion of the FY 1996-97 Town Budget. The purpose of this Chapter is to present the Oro Valley CIP for the fiscal year of 1996-97 .. through 2000-2001. The Chapter is divided into five sections: • CIP Assumptions and Policies air • CIP Assumption Projects • CIP Prioritized Capital Projects • FY 1996-97 Capital Budget • Oro Valley Capital Improvements Plan: FY 1997-98 through FY 2000-2001 A. CIP Assumptions and Policies � Over the years, the Town of Oro Valley has financed a substantial portion of capital improvements through operating revenue and use of reserves. The pay-as-you-go financial policy has been the Town's "modus operandi" in the past. The goal of the Oro Valley debt management policy is to maintain the Town's ability to incur present and future debt at the most beneficial interest rates in amounts needed for financing the CIP, without adversely affecting the Town's ability to finance essential community services. Policy Statements • The Town of Oro Valley shall allocate at least $1,000,000 annually out of available surplus funds for the implementation of the Capital Improvements Plan. Surplus funds shall be considered all moneys accumulated from overestimated cost projections, unspent funds, or operational surpluses. Funds will be available only after the minimum fund balances have been preserved. • A five year capital improvements plan will be developed and updated annually along with corresponding anticipated funding sources. 17 1 • The Town shall open a separate CIP Capital Account. Barring an emergency, funds --an only be disbursed from this account if the project has been through the CIP Evaluation Process. • The CIP Capital Account shall maintain a $50,000 emergency fund balance at all times. Should this emergency fund be used, Town Council shall reimburse the emergency fund as soon as possible. Requests to tap into the emergency fund will be screened by the Town Manager with Council approval necessary for disbursement. • The OP Capital Account shall maintain an $25,000 balance for the completion of traffic signal projects when they are warranted. When this fund is used, Town Council shall allocate funds to reimburse the traffic signal fund as soon as possible. • Pay-as-you-go financing will be an integral part of the Oro Valley CIP. • Efforts will be made to maintain or improve the Town's bond rating. • Capital projects and improvement districts financed through the issuance of bonded debt will be financed for a period not to exceed the useful life of the project. • The Town shall consider forming improvement districts upon the request of residents based on public benefit, debt equity, and need. • All Town departments will investigate ways and strive to become more self supporting. • The Town shall avoid utilizing lease purchase agreements to finance relatively small purchases, such as vehicles. U • The Town shall work aggressively with developers to help future development pay for itself. • Raised pavement markers will be included in all new street project proposals. • Department Heads shall meet prior to the annual CIP Update Process to discuss the best use of equipment and vehicle replacement program funds. These recommendations shall be submitted to the TAC for review and discussion. • Using open lines of communication, departments shall consolidate purchases whenever possible to maximize funds. • When purchasing equipment, thought will be given to compatibility with equipment in other departments. 18 • • Prior to the CIP Update Process, the Public Works Director shall outline a prioritized list of projects for the Pavement Preservation Program. This list shall be submitted to the TAC for discussion and review. COP Assumptions In addition to the above policy statements, the following assumptions were made in the development of the Oro Valley CIP. • General fund surplus (fund balance) will not be allowed to be less than a level of funding which would allow the Town to run without income for 4-6 months. • State shared sales and income tax revenues are estimated to increase to about $3.1 M for FY 1996/97. • Local sales tax proceeds are estimated to remain constant at around $3.4M. Due to the high reliance of home sales on sales tax revenues, this figure should be monitored closely. • Highway User Revenue Fund proceeds to increase to $1 .4M. • LTAF to increase to $125,000. The following table lists all of the projects that were submitted for Oro Valley's first Capital Improvements Plan. The name of the project and the total cost of the project are listed. Summary of All Capital Projects Project, Total Cost Street Improvement - Tangerine Road, Monterra to La Canada $1,325,000 Street Improvement - Tangerine Road, First Ave. to Monterra 1,000,000 Lighting Upgrades - Dennis Weaver Park 50,000 Street Improvement - First Avenue, Oracle to Tangerine 6,850,000 Prisoner Processing/Release Area & Nighttime Walk-in 65,000 Calle Concordia Improvements 525,000 Dennis Weaver Park Upgrades; Phase II 496,000 Acquisition Adjacent Property 1,000,000 Long-Term Facility Construction 1,000,000 19 Re-Design Judge's Bench 10,000 CDO River Park Trai I head Development 10,000 Work Vehicles for Parks and Recreation Staff 45,000 Mobile Data Terminals 155,000 Investigative Special Operations/Radio Repeater Purchase Site Rental & Installation 17,000 Digital Tape Logger, 32 Channel 42,000 La Canada Extension, Tangerine to Moore 2,500,000 Community Policing Printshop 16,200 Backhoe Replacement 70,000 Front-End Loader Replacement 175,000 Hardy/Northern Realignment 525,000 Replacement Service Truck 35,000 AZAFIS Upgrade 16,500 Lambert Lane Reconstruction/West of La Canada 275,000 Blackstone Road Reconstruction 20,000 El Conquistador Way Reconstruction 260,000 Public Works Yard 1,500,000 Covered Parking at Town Hall 45,000 OV Municipal Parking Building 3,000,000 Pavement Preservation 950,000 Spot Safety Improvements 500,000 Sign Replacement Program 50,000 Honey Bee Canyon/Sausalito Wash Acquisition 1,500,000 Catalina Shadows Roadway 110,000 Street Improvement - La Canada, Linda Vista to Lambert Lane 6,172,000 1 GIS Equipment & Software 26,000 Drainageway Relocation/Safety Improvements 45,000 Copper Creek Park Land Acquisition 900,000 Dennis Weaver Park Land Acquisition 450,000 Autumn Hills Left Turn Bays 65,000 Dennis Weaver Park Upgrades; Phase I 150,000 Rockridge Apartments Access Improvements 25,000 Copper Creek Park Development 745,000 Pool Car 10,000 Departmental Vehicle 12,000 Street Improvement - La Canada Dr., Hardy to Linda Vista 3,331,000 Dennis Weaver Expansion 1,095,000 Rancho Feliz Drainageway 200,000 Marked Police Vehicles and Administration Replacement 1,561,000 In-Service Training Equipment/Community Service Program 13,500 Street Improvement - La Canada Drive Lambert Lane to Naranja 2,250,000 Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 Miscellaneous Traffic Signals 600,000 20 I Bike Lanes for Naranja, La Cholla to La Canada 165,000 Town Wide Computer Upgrades 87,000 a* Topographic Mapping of Town 100,000 Paved Parking Area Calle Concordia Building 25,000 Short-term facilities planning - Modular Building 210,000 Four Wheel Drive Vehicle 25,000 oft so Total All Capital Projects $42,685,200 B. CIP Assumption Projects The Oro Valley CIP Assumption Projects are those capital projects which are deemed absolutely essential to the operation of the Town. Additionally, they may be ongoing operating capital purchases which replace existing equipment outlined by an equipment ph replacement program or projects which have designated funding for all or a majority of the project. Some of these projects are also totally contingent on outside funding. These projects receive priority funding from the CIP Capital Account and they do not go through IP the project evaluation process. The beginning of this section contains a Summary of Assumption Projects which gives the project name, number, and total project cost. Following this Summary is a brief description a. of each project and its justification for becoming an Assumption Project. The final table is a Year-By-Year Schedule of Assumption Projects. o Summary of Assumption Projects aw Project Total Cost Al . Pavement Preservation 950,000 A2. Spot Safety Improvements 500,000 A3. Sign Replacement Program 50,000 A4. Honey Bee/Sausalito Wash Acquisition 1,500,000 II. A5. Catalina Shadows Roadway 110,000 A6. Street Improvement - La Canada Dr., Linda Vista to Lambert 6,172,000 A7. GIS Equipment and Software 26,000 A8. Drainageway Relocation/Safety Improvements 45,000 A9. Copper Creek Park Land Acquisition 900,000 A10. Dennis Weaver Park Land Acquisition 450,000 Al 1 . Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades; Phase I (Heritage Grant) 150,000 21 t A13. Rockridge Apartments Access Improvements 25,000 A14. Copper Creek Park Development 745,000 A15. Pool Car 10,000 111 A16. Departmental Vehicle 12,000 A17. Street Improvement - La Canada Dr., Hardy to Linda Vista 3,331,000 A18. Dennis Weaver Expansion 1,095,000 A19. Rancho Feliz Drainageway 200,000 A20. Marked Police Vehicle & Administration Replacement 1,561,000 A21. In-Service Training Equipment/Community Service Program 13,500 A22. Street Improvement - La Canada Dr. Lambert Lane to Naranja 2,250,000 A23. Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 A24. Miscellaneous Traffic Signals 600,000 A25. Bike Lanes for Naranja, La Cholla to La Canada 165,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 100,000 A28. Paved Parking Area Calle Concordia Building 25,000 A29. Short-term facilities planning - Modular Building 210,000 A30. Four Wheel Drive Vehicle 25 000 TOTAL COST OF ASSUMPTION PROJECTS $21,6575oo a 1 22 Assumption Projects Project Al: Pavement Preservation This is an annual program for the preservation of existing public streets using slurry, chip and acrylic seals. This program is tailored annually using the information generated by the Town's pavement management program, which seeks to minimize pavement life cycle costs. Additionally, this program is necessary to meet Federal ISTEA regulations. Funding source will come from HURF funds. Currently scheduled for FY 1996/97 through FY 2000/01. Project A2: Spot Safety Improvements The safety improvement program is an annual program which addresses spot safety needs such as: dip crossing reconstruction, turn lanes installation, bicycle lane segment completion, sight visibility improvements, pedestrian improvements, and minor traffic control devices. Funding source will come from HURF/HES funds. Currently scheduled for FY 1996/97 through FY 2000/01. Project A3: Sign Replacement Program The Federal government is requiring jurisdictions to convert to the metric system in the near future. All speed limit signs will need to be posted for metric. Also, the signs within the Town require regular repair and replacement. This program will provide the resources for systematic sign replacement. Funding source will come from HURF funds. Currently scheduled for FY 1996/97 through FY 2000/01 . p aft Project A4: Honey Bee Canyon/Sausalito Wash Acquisition This project involves a significant natural area in the community. The Town is committed to protecting this area which will also provide trail access into Tortolita Mountain Park. The funding for this project is dependent on the outcome of the bond election. Project A5: Catalina Shadows Roadway This improvement is proposed as part of Annexation 2A, for upgrading existing roadways within the annexation area. Project A6: Street Improvements - La Canada Dr., Linda Vista to Lambert Lane Part of the capital improvement schedule for the La Canada Drive Development Impact Fee. This project will be needed to widen La Canada between Linda Vista and Lambert to four lanes. Traffic will trigger this improvement during FY 1998/99. However, it is not to be implemented until FY 2000/01 because of other work scheduled. Project to include bridge widening, storm drains, multi-purpose lanes, landscaping, and public art. Funding sources will come from impact fees, GO Bonds, and CIP capital account. Project A7: Geographic Information Systems Equipment and Software In order to augment the department's mapping and analysis functions, and keep pace with emerging technologies, the department will need to purchase microstation computer and associated Arc/Info and Arc/CAD software packages. Funding source will come from CIP 23 capital account. Currently scheduled for FY 1996/97. Project A8: Drainageway Relocation/Safety Improvements This project will remove the drainageway adjacent to La Canada Drive and place the water in pipes under La Canada Drive. Safety improvements associated with this project will be included. Funding source will come from HURF funds. Currently scheduled for FY 1996/97. Project A9: Copper Creek Park Land Acquisition This project would provide the necessary land for parks and recreation facilities in the Copper Creek area. A 30 acre parcel would be purchased. Funding will be dependent on the upcoming bond election. Project A10: Dennis Weaver Park Land Acquisition This project will be to acquire a ten acre parcel adjacent to the existing Dennis Weaver Park. This land would be required to provide space for additional park amenities. This project is contingent on the upcoming bond election. Project A11: Autumn Hills Left Turn Bays This improvement has been requested by the Homeowner's Association. Funding will come from HURF funds. Currently scheduled for FY 1996/97. Project Al2: Dennis Weaver Park Upgrades; Phase I (Heritage Grant) The Town applied for a grant through the Arizona State parks Heritage Fund program to replace the lighting on field #1, replace the older playground equipment, construct a new picnic ramada, upgrade or replace the park restroom facilities to meet ADA requirements, and develop the existing unused 5 acres as open turk space. This is a matching grant program; the Town is matching $150,000 to $150,000 in grant funds for a total project budget of $300,000. Funding sources will come from CIP capital account and heritage grant. Project A13: Rockridge Apartments Access Improvements This project will provide access from Pusch View Lane across a drainage channel to the property west of Rockridge Apartments. Funding for this project will come from the CIP capital account. Currently scheduled for FY 1996/97. Project A14: Copper Creek Park Development This project would provide the necessary land for parks and recreation facilities in the Copper Creek area. A 30 acre parcel would be purchased. Funding for this project is contingent on the upcoming bond election. 011 Project A15: Pool Car The public works department is in need of an additional pool car due to the move to the Calle Concordia facility. Funding sources are CIP capital account and HURF funds. 24 Currently scheduled for FY 1996/97. Project A16: Departmental Vehicle The Planning and Zoning department's zoning inspection personnel are presently without a dedicated inspection vehicle. A small sedan is needed for general purpose departmental use, to be shared by zoning inspectors and other planning department personnel. Funding will come from CIP capital account for FY 1996/97. Project A17: Street Improvement - La Canada Drive, Hardy to Linda Vista Part of the capital improvement schedule for the La Canada Drive Development Impact Fee. This project will be needed to widen La Canada between Linda Vista and Lambert to four lanes. Traffic will trigger this improvement during 1998/99. However, it is not to be implemented until FY 2000/01 because of other work scheduled. Project to include bridge widening, storm drains, multi-purpose lanes, landscaping, and public art. Funding will come from impact fees, bonds, and CIP capital account. Scheduled to begin in FY 1997/98. Project A18: Dennis Weaver Park Expansion This project consists of park and recreation facilities for the property adjacent to Dennis Weaver Park. The project includes baseball fields, soccer fields, softball fields, jogging trail, and picnic ramadas. The funding is contingent on the upcoming bond election. Project A19: Rancho Feliz Drainageway Existing channel bottom made of soil cement is failing due to high velocities and abrasion by sediment. Failure could result in flooding of up to 36 homes. Channel bottom to be given a 4" flashcoat of shotcrete. Funding will come from Pima County Flood Control District. Scheduled for FY 1996/97. Project A20: Marked Police Vehicle & Administrative Vehicle Replacement This is for the annual replacement of Police Department vehicles that have exceeded their normal, useful service life (100,000 + miles). Vehicles are replaced on a 4 - 7 year cycle based upon miles traveled. Funding will be from the CIP capital account. Currently scheduled for FY 1997/97 through FY 2000/01 . Project A21: In-Service Training Equipment/Community Service Program This is a two year project that provides equipment for training needs both within the Police Department and for Community Service Programs, i.e. Dare, Neighborhood Watch, Traffic Safety, Crime Prevention, Great, etc. Project time period is two years beginning FY 1995/96, to be done in two phases. This request is for second year funding. Funding will come from the CIP capital account. Currently scheduled for FY 1996/97. Project A22: Street Improvements - La Canada Drive, Lambert Lane to Naranja This project is needed to strengthen the existing failing pavement, eliminate drainage 25 hazards, provide a multi-purpose lane, provide a golf cart underpass, and improve sight distance/rideability. This project is a key component of the La Canada Drive Impact Fee Ordinance, and is needed to make up the Town's share of overall project. Funding will come from STP, developer, and CIP capital account. Currently scheduled for FY 1996/97. Project A23: Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte This project will develop a continuous bike link to Oro Valley from other parts of Pima County's bike route through the Catalina Foothills. This project will receive 80% of its funding from a federal transportation enhancement grant which Oro Valley and Pima County were jointly awarded. Scheduled for FY 1996/97. Project A24: Miscellaneous Traffic Signals This project is for traffic signals in various locations throughout Oro Valley. Funding sources are ADOT, CIP capital account, developer, HURF/HES. Scheduled for FY 1996/97 through FY 2000/01. Project A25: Bike Lanes for Naranja Road, La Cholla to La Canada Drive Development of two five foot bicycle lanes adjacent to the outside edge of pavement. Funding sources are HURF/HES, and developer. Currently scheduled for FY 1997/98. Project A26: Town Wide Computer Upgrades This project is for the upgrade of all Town computers. Funding will come from the CIP capital account. Scheduled for FY 1996/97. Project A27: Topographic Mapping of Town This project is necessary for proper evaluation of plans and for drainage purposes. Mapping of the entire Town will be digitally compiled for use in future Geographic Information System applications. Funding would come from the CIP capital account and is scheduled for FY 1996/97 through FY 1998/99. Project A28: Paved Parking Area Calle Concordia Building The reconstruction of the building at Calle Concordia did not include paving of the parking lot. This paving will meet the requirements of the Zoning Code. Funds will come from the CIP capital account and is scheduled for FY 1996/97. 111 Project A29: Short-term Facilities Planning - Modular Buildings Modular building would house additional development services staff and relieve crowded conditions in the existing building. The proposed modular building would also accommodate the Prosecuting Attorney and Building Safety departments. Funding would come from the certificates of participation and is scheduled for FY 1996/97. 26 • Project A30: Four Wheel Drive Vehicle The Planning and Zoning department's zoning inspection personnel are presently without a dedicated inspection vehicle. An all terrain (four wheel drive) vehicle is needed to access undeveloped properties to ascertain compliance with salvage and grading plans. Funding will come from the CIP capital account and is scheduled for FY 1996/97. 27 C. Prioritized Capital Projects The following tables contain all of the capital projects which have all been through the Decision Making Matrix. The first table provides a list of these projects by name and total project cost. The second table places the projects in the numerical ranking assigned by the Project Evaluation phase of the project. This long term list of priorities must be consulted whenever a funding decision is made. This list will also be updated each year as projects are implemented, circumstances change, or new projects are added. This list was utilized to determine the Capital Budget for FY 1996-97. These tables are followed by a brief description of all of the projects that have gone through Ii the Decision Making Matrix. The final table in this section is a Year-By-Year Summary of , Prioritized Projects. Summary of Prioritized Projects Project Rating Points Total Cost P1. Street improvement-Tangerine Road, Monterra to La Canada 5,776 $1,325,000 P2. Street improvement-Tangerine Road, First Ave. to Monterra 5,776 1,000,000 P3. Lighting Upgrades to Dennis Weaver Park 4,995 50,000 P4. Street Improvement - First Avenue, Oracle to Tangerine 4,974 6,850,000 P5. Prisoner Processing/Release Area and Nighttime Walk-in 4,964 65,000 P6. Calle Concordia Improvements 4,962 525,000 P7. Dennis Weaver Park Upgrades; Phase II 4,882 496,000 P8. Acquisition Adjacent Property 4,622 1,000,000 P9. Long-term Facility Construction 4,499 1,000,000 P10. Re-design Judge's Bench 4,418 10,000 P11. CDO River Park Trailhead Development 4,399 10,000 P12. Work Vehicles for Parks & Recreation Staff 4,159 45,000 P13. Mobile Data Terminals 4,035 155,000 P14. Investigative Special Operations/Radio Repeater Purchase Site Rental and Installation 4,032 17,000 P15. Digital tape logger 3,990 42,000 P16. La Canada Extension Tangerine to Moore 3,985 2,500,000 P17. Community Policing Printshop 3,982 16,200 P18. Backhoe Replacement 3,816 70,000 P19. Front-end Loader Replacement 3,816 175,000 P20. Street Improvement - Hardy/Northern Realignment 3,469 525,000 P21. Replacement Service Truck 3,264 35,000 P22. AZAFIS Upgrade 3,242 16,500 28 P23. Lambert Lane Reconstruction West of La Canada 3,080 275,000 P24. Blackstone Road Reconstruction 2,921 20,000 P25. El Conquistador Way Reconstruction 2,765 260,000 P26. Public Works Yard 1,883 1,500,000 P27. Covered Parking at Town Hall 1,083 45,000 P28. OV Municipal Parking Building 0 3,000,000 TOTAL COST OF PRIORITIZED PROJECTS $21,027,700 29 Prioritized Projects Project 1: Street Improvement - Tangerine Rd., Monterra to La Canada 5776 Rating Points Realignment, vertically and horizontally of Tangerine Road for safety and structural adequacy, removing DIP crossing and improving safety. Resulting road to become part of State Route 989. Funding sources come from HURF funds and CIP capital account. Scheduled to begin in FY 1998/99. Project 2: Street Improvement - Tangerine Rd., First Ave. to Monterra 5776 Rating Points Realignment, vertically and horizontally of Tangerine Road for safety and structural adequacy, removing dip crossings. Resulting road to become part of State Route 989. Funding sources will be HURF funds and the General Fund. Scheduled to being in FY 1997/98. Project 3: lighting Upgrades to Dennis Weaver General Pedestrian Areas 4,995 Rating Points One item that has been brought to staff's attention is the fact of adequate lighting for night usage in the pedestrian sidewalk area at Dennis Weaver Park between the concession building and field #1, the sidewalk leading up to and around the ramadas, and around the ramadas themselves. Lighting suggested for these areas include medium sized decorative light poles with flood lighting for the area next to field #1 . Bollards could be located along the sidewalk paths leading up to and around the ramadas for a more aesthetic appearance. Funding will come from CIP capital account and is scheduled for FY 1996/97. Project 4: Street Improvement - First Avenue, Oracle to Tangerine 4,974 Rating Points Improvement of First Avenue to widen to four lanes, based upon traffic threshold being exceeded. Improvements to include storm drains, multi-purpose lanes, additional bridge span adjacent to existing bridge, and public art. Funding will come from impact fees, GO bonds, and improvement district. Scheduled to begin FY 1999/00. Project 5: Prisoner Processing/Release Area and Nighttime Walk-In 4,964 Rating Points Completion of approximately 400 square feet of building space containing a waiting area and interview rooms attached to our holding area. Completion of a rear driveway and small parking area to access this area off of La Canada, North of our current driveway. Currently there is no area appropriate for persons waiting for the release of prisoners or processing releases. After normal working hours, our officers are having to meet persons in our parking lot to release arrestee and complete necessary paperwork. Victims and suspects have the same waiting area. Funding will come from CIP capital account and is scheduled for FY 1996/97. 30 Project 6: Calle Concordia Improvements 4,962 Rating Points This project will analyze the needs for landscaping, left-turn bays into Canyon Del Oro High School and driveway drainage improvements along Calle Concordia. This project includes consultant studies, construction drawings and construction cost estimates. Funding will come from HURF. Scheduled to begin FY 1996/97. Project 7: Dennis Weaver Park Upgrades; Phase II 4,882 Rating Points The present Mercury Vapor lighting on fields 2-5 is outdated technology, has high maintenance costs, and is extremely expensive to operate. These fields need to have Metal Halide lighting systems. There is a serious dust control problem at the park in the evening during its highest use time. Stabilized granite needs to be installed in and around all high traffic pedestrian areas to eliminate this as a health and safety concern. There is also a need for additional park fixtures such as benches, drinking fountains, and kiosks to display community information. The racquetball courts need to be repainted, have new windscreening installed around the top, minor roof repairs, and light control buttons need to be installed in each court for better control of existing lighting system and for user convenience. As an alternative, the Town may want to consider installing a telephone operated master controller at the park which can be programmed to control when the ballfield, racquetball, ramada, playground, and swimming pool lights as well as sprinkler system turn on and off by dialing an assigned telephone number, keying in the appropriate facility code and usage time. The swimming pool is in need of additional shade structures as well as deck space to better accommodate swimmers and spectators. The perimeter fence needs to be replaced because it is a safety hazard in that it is barbed and has no top rail. Since not all of the racquetball courts are in use at once, half of the racquetball court area could be converted to a much needed indoor basketball court by removing the middle wall section, mounting the goals, and restriping the floor. Funding will come from the CIP capital account and is scheduled for FY 1996/97. Project 8: Acquisition Adjacent Property 4,622 Rating Points The citizens of Oro Valley, through a survey, indicated that Town Hall expansions should be centralized in one place. In order to accomplish this goal, the adjacent property to the North needs to be acquired. Possibilities for expansion are fast coming to an end with the present property. Increased services provided which require additional buildings bring increased traffic flow and create need for additional parking. The citizens express their desires for: a senior center (like Reid Park) with accommodations for exercise, education, arts and crafts; multi-use center; auditorium; performing arts center; teen center; library; etc. The acquisition of the adjacent property would provide room for expansion. Any additional expansion should most likely take into consideration a municipal parking garage. Funding will come from the CIP capital account and is scheduled for FY 1996/97. 31 Project 9: Long-Term Facility Construction 4,499 Rating Points The continued growth of the Town makes it necessary to consider the need for additional facilities for the staff and public. Funding will come from CIP capital account and is scheduled for FY 1996/97. Project 10: Redesign judge's Bench 4,418 Rating Points This project would redesign the judge's bench in the Magistrate Court. An architect would be hired to design and evaluate related costs. Funding would come from the CIP capital account and is scheduled for FY 1996/97. Project 11: CDO River Park Trailhead Development 4,399 Rating Points This project will develop a trailhead adjacent to Rockridge Apartments to serve the proposed CDO River Park. The trailhead would include a monument sign and parking lot. Land will be donated by Rockridge Apartments. Project funded by the CIP capital account and scheduled for FY 1996/97. Project 12: Work Vehicles for Parks and Recreation Staff 4,159 Rating Points Parks and Recreation Division employees, including the Parks and Recreation Administrator OD as well as park maintenance employees are currently using their own personal vehicles in which to conduct all of their Town business while on duty. This has caused a financial PI hardship on the employees in terms of fuel and repair costs on their personal vehicles. It also greatly increases the Town's liability exposure in the event an employee is involved in an accident. Requested is for two vehicles in FY 1996/97 (one for the Parks and Recreation I Administrator and one for the park maintenance employees) and one in FY 1997/98 in the event the park maintenance operations and responsibilities expand in scope due to the development of other park sites. Funding will come from the CIP capital account. Project 13: Mobile Data Terminals 4,035 Rating Points Mobile Data Terminals/laptop computers will enable patrol officers to run vehicle/people check from the patrol vehicle. Bypassing the dispatcher will increase officer safety, avoid frequency saturation, and may eliminate the need for manned frequencies as the patrol area and police force expands. They will add an additional safety link between the patrol officers and police communications and allow for confidential messages and calls to be passed along without allowing media or suspects to intercept. Funding will come from CIP capital and is scheduled for FY 1996/97. 32 Project 14: Investigative Special Operations/Radio Repeater Purchase Site Rental and Installation 4,032 Rating Points Currently the Police Department has one operational primary radio repeater frequency used exclusively for the patrol function. We are in need of a secondary operational radio repeater frequency to be utilized for investigative/special operations that take members of the Police Department outside the boundaries where we are able to communicate with each other on a simplex frequency. Over the past several years we have been involved in operations where we have had to rely on mobile telephones to try and conduct surveillance after we have lost radio communications. This has proved impossible yet expensive. As we have continued to grow, this problem has only increased and needs to be dealt with as soon as possible through the installation of a secondary frequency radio repeater in a location that would offer communication in a greater portion of the Tucson metropolitan area. Funding source will come from CIP capital account and is scheduled for FY 1996/97. Project 15: Digital Tape Logger 3,990 Rating Points The department's cuurent tape togger is 7.5 years old. They generally have a useful like up to 10 years. This would require replacement by 1998. Technology is advancing at a rapid pace on these machines. Service contracts have doubled in price this year and service technicians are hard to find that will work on this outdated equipment. With the addition of more phone lines and radio frequencies to monitor, a larger more advaced Digital Tape Logger is necessary to keep up with the changing world around us. This unit should be adequate for the next 8 years. Scheduled for FY 1996/97 and funded by the CIP Capital Account. Project 16: La Canada Extension, Tangerine to Moore 3,985 Rating Points Traffic modelling completed as a part of the Rancho Vistoso PAD amendment has revealed a need for the extension of La Canada Drive, from Tangerine to Moore. Without this extension, Rancho Vistoso Boulevard and First Avenue will exceed capacity as the Rancho Vistoso neighborhoods develop. Additionally, roadways within the developments of Vistoso Ridge, Sunridge I and II, and Rancho de Oro will also reach capacity. This project includes construction of new roadway and traffic signal at Tangerine and La Canada. Possible funding sources are impact fees and improvement district. Scheduled to begin Fiscal Year 1997/98. Project 17: Community Policing Printshop 3,982 Rating Points With the department's commitment to community policing, there is a constant need for publications and information to be distributed to the community including schools, businesses, residents, multi-housing projects, public groups, neighborhood watch, victim assistance, crime prevention, advisory councils, etc. Cost to print these publications, especially customizing to town and departmental needs can be prohibitive and time 33 consuming. The department is requesting funding for a stand-alone 486 DX computer work station and color printer, and a computer notebook, overhead projector and software to assist with mobil presentation projects for community policing programs. For those materials that cannot be printed in-house, we are asking for additional monies to purchase pre-printed materials, i.e., 9-1-1 stickers, neighborhood watch signs, juvenile crime prevention awards/rewards, etc. Funding will come from the CIP capital account and is scheduled for FY 1996/97. Project 18: Backhoe Replacement 3,816 Rating Points Replacement of backhoe. Currently scheduled for FY 1996/97 and funding source will come from HURF funds. Project 19: Front-End Loader Replacement 3,816 Rating Points Replacement of aging front-end loader used by the Town. Funding source will come from HURF funds and is scheduled for FY 1996/97. Project 20: Hardy/Northern Realignment 3,469 Rating Points This intersection will become the responsibility of the Town upon completion of Annexation 2A. This project would study the realignment of Hardy at Northern Avenue and remove the existing offset. Funding will come from HURF funds and is scheduled to begin FY 1996/97. Project 21: Replacement Service Truck 3,264 Rating Points Replacement required for service truck which has in excess of 140,000 miles. Funding sources will be HURF and CIP capital account. Currently scheduled for FY 1996/97. Project 22: AZAFIS Upgrade 3,242 Rating Points Provide immediate access to hard copies of fingerprints from the AZAFIS System through the Tucson Police Department State Site. System would provide immediate computerized fingerprint information and copies of fingerprints for comparison or identification. These are necessary for case follow-up investigations, warrant confirmations, and bookings. Printer paper stock, typewriter, and data phone link included. Funding will come from CIP capital account and Seizure Fund. Currently scheduled for FY 1997/98. .g IN Project 23: Lambert Lane Reconstruction West of La Canada 3,080 Rating Points Lambert Lane west of La Canada is signed for 35 miles per hour. This is due to the limited sight visibility as motorists approach the intersection of La Canada and Lambert Lane from the west. Reconstruction of Lambert Lane would allow for the continuous speed of 45 mph for the entire length of Lambert. This project will provide design, construction plans, and 34 } cost estimates. Funding will come from HURF funds and is scheduled for FY 1996/97. Project 24: Blackstone Road Reconstruction 2,921 Rating Points Blackstone will be reconstructed to address pavement and drainage concerns. Schedule to begin in FY 1996/97 and funding source will be HURF funds. ink Project 25: El Conquistador Way Reconstruction 2,765 Rating Points This project will be for analysis, construction drawings and cost estimates for this roadway including repair of pavement damage and drainage concerns. Funding source will be HURF funds and is scheduled to begin in FY 1996/97. Project 26: Public Works Yard 1,883 Rating Points This project would relocate the Public Works yard from its current location in a residential area. This two phased project would consist of the purchase of ten acres of industrial land ra (none now exists in Oro Valley) and relocation of existing shop, fencing, mitigation,miti ation, etc. Funding would come from a combination of the CIP capital account, HURF, and sale of p existing property. Scheduled for FY 1996-97. Project 27: Covered Parking at Town Hall 1,083 Rating Points This project would cover approximately 75 of the 160 parking spaces at the Town Hall and Police Facility. Funding would come from the General Fund and is scheduled for FY 1996- 97. Project 28: Oro Valley Municipal Parking Building 0 Rating Points This project is for acquisition of the adjacent property to the north of Town -Hall to locate a tiered parking garage designed so that it is built into the terrain (underground) so as to have the least negative impact to the area. Fundingwould come from the CIP capital p "` account and is scheduled for FY 1997/98. 16, 35 D. FY 1996-97 Capital Budget The Capital Budget represents the fiscal commitment to implement capital projects within the first year of the CIP. It has been determined that the Town of Oro Valley will be able to commit $1,415,300 from the General Fund. It should be noted that some projects will be financed over a period of years and there will need to be significant fund balances to ensure adequate funding to complete committed projects. It is hoped that additional revenues, cost savings in other areas, and alternate funding sources will allow the Town to commit additional financing toward the CIP in later years, but this is not an assumption that can be made at this time. The dollars that are in hand must be stretched the furthest. This makes the decisions in the first year critical, and also places the emphasis on creatively obtaining funds in the following budget years. As discussed earlier, Assumption Projects for the Capital Budget are those projects which were deemed essential for the Town to do business or already have a funding source. These projects have already been programmed into the financial projections in this document and no other capital projects will be considered until these projects have been provided for. A detailed description of these projects and their funding sources may be found in Appendix A: CIP Project Sheets. 36 1996-97 Capital Budget Assumption Projects Total Cost Al . Pavement Preservation $170,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A4. Honey Bee Canyon/Sausalito Wash Acquisition 1,500,000 A5. Catalina Shadows Roadway 110,000 A7. GIS Equipment and Software 26,000 A8. Drainageway Relocation/Safety Imp 45,000 A9. Copper Creek Park Land Acq. 900,000 A10. Dennis Weaver Park Land Acq. 450,000 Al 1. Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades 150,000 A13. Rockridge Apartments Access Improve. 25,000 A15. Pool Car 10,000 A16. Departmental Vehicle 12,000 A18. Dennis Weaver Expansion 1,095,000 A19. Rancho Feliz Drainageway 200,000 A20. Marked Police Vehicles & Admin. Replacement 196,000 A21. In-Service Training Equip/Community Serv. Prog. 13,500 A22. Street Improve - La Canada Dry. Lambert to N aran ja 2,250,000 A23. Bike Lanes for Calle Buena Vista/Northern/Paseo Del Norte 285,000 A24. Miscellaneous Traffic Signals 120,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 33,000 A28. Paved Parking Area - Calle Concordia Bldg. 25,000 A29. Short-term facilities planning - Modular Building 210,000 A30. Four Wheel Drive Vehicle 25,000 TOTAL $8,112,500 37 Assumption Projects Funded By CIP Capital Account Total Cost A7. GIS Equipment & Software 26,000 A8. Drainageway Relocation/Safety Improvement (Banked) 15,000 Al 1. Autumn Hills Left Turn Bays 65,000 Al2. Dennis Weaver Park Upgrades 150,000 A15. Pool Car 10,000 A16. Departmental Vehicle 12,000 A19. Rancho Feliz Drainageway (Banked) 40,000 A20. Marked Police Vehicles & Admin. Vehicle Replace. 196,000 A21. In-Service Training Equip./Community Serv. Prog. 13,500 A24. Miscellaneous Traffic Signals 120,000 A26. Town Wide Computer Upgrades 87,000 A27. Topographic Mapping of Town 33,000 lit A28. Paved Parking Area - Calle Concordia Bldg. 25,000 A29. Short-term facilities planning - Modular Bldgs. 39,000 A30. Four Wheel Drive 25,000 al TOTAL $856,500 Debt Service of Existing Projects Total Cost Street Sweeper 22,430 Certificate of Participation - Town Hall 181,195 State Land Department 92,183 TOTAL $295,808 TOTAL ASSUMPTION PROJECTS AND DEBT SERVICE $1,152,308 v. Capital Account Balance at Beginning of FY 1996-97 1,415,300 CIP p g g Total Committed Funds From CIP Capital Account (1,152,308) CIP Capital Account Funds Available 262,992 CIP Capital Account Contingency Fund (52,692) Banked Projects (50,300) CIP Capital Account Traffic Signal Installation Reserve (25,000) Funds Available to Finance Prioritized Project $135,000 S 38 FY 1996-97 Recommended Funding of Prioritized Projects Project Impact on FY 1996-97 Capital Account Project 3: Lighting Upgrades - Dennis Weaver Park - This project cannot be funded by the Capital Account. 0 Project 5: Prisoner Processing/Release Area & Nighttime Walk-in - This project will be funded by the Capital Account. 65,000 Project 6: Calle Concordia Improvements -This project will not be funded by the Capital Account. 0 Project 7: Dennis Weaver Park Upgrades: Phase II - This project will not be funded by the Capital Account. Funding may become available next year through a state grant. 0 Project 8: Acquisition Adjacent Property - This project was partially funded by the Capital Account. 30,000 Project 10: Re-design Judge's Bench -This project will be funded by the Capital Account. 10,000 Project 11: CDO River Park Trailhead Development - This project will not be funded by the Capital Account. 0 Project 12: Work Vehicles for Parks & Recreation Staff - This project will be funded by the Capital Account. 30,000 Project 13: Mobile Data Terminals - This project will not be funded by the Capital Account. 0 Project 14: Investigative Special Operations/Radio Repeater Purchase Site Rental & Installation - This project will not be funded by the Capital Account. 0 Project 15: Digital Tape Logger - This project will not be funded by the Capital Account. 0 Project 17: Community Policing Printshop-This project will not be funded by the Capital Account. 0 39 Project 18: Backhoe Replacement - This project will not be funded by the Capital Account. 0 Project 19: Front-End Loader Replacement -This project will not be funded by the Capital Account. 0 Project 20: Hardy/Northern Realignment - This project will not be funded by the Capital Account. 0 Project 21: Replacement Service Truck - This project will not be funded by the Capital Account. 0 Project 23: Lambert Lane Reconstruction West of La Canada - This project will not be funded by the Capital Account. 0 Project 24: Blackstone Road Reconstruction - This project will not be funded by the Capital Account. 0 Project 25: El Conquistador Way Reconstruction - This project will not be funded by the Capital Account. 0 Project 26: Public Works Yard - This project will not be funded by the Capital Account. 0 Project 27: Covered Parking at Town Hall This project will not be funded by the Capital Account. 0 Total Prioritized Project Capital Account Disbursements in FY 1996-97 $135,000 40 E. Oro Valley Capital Improvements Plan: FY 1997-1998 Through FY 2000-2001 Following is a summary that constitutes the remainder of the proposed projects for the Oro Valley Capital Improvements Plan broken down by year. These projects will be evaluated each year upon resubmittal for review. FY 19 9 7-9 8 Al. Pavement Preservation $180,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A14. Copper Creek Park Development 745,000 A17. Street Improvement - La Canada Dr., Hardy to Linda Vista 331,000 A20. Marked Police Vehicles and Administration Replacement 245,000 A24. Miscellaneous Traffic Signals 120,000 A25. Bike Lanes for Naranja, La Cholla to La Canada 165,000 A27. Topographic Manning of Town 33,000 Total Assumption Projects for FY 1997-98 $1,929,000 P2. Street Improvement - Tangerine Rd., First Ave. to Monterra $100,000 P6. Calle Concordia Improvements 500,000 P12. Work Vehicles for Parks and Recreation Staff 15,000 P13. Mobile Data Terminals 50,000 P16. Street Improvement - La Canada Extension, Tangerine to Moore 250,000 P17. Community Policing Printshop 5,500 P20. Hardy/Northern Realignment 500,000 P22. AZAFIS Upgrade 16,500 P23. Lambert Lane Reconstruction West of La Canada 250,000 P25. El Conquistador Way Reconstruction 250,000 P26. Public Works Yard 500,000 P28. Oro Valley Municipal Parking Building 3,000,000 Total Prioritized Projects for FY 1997-98 $5,437,000 GRAND TOTAL FOR FY 1997-98 $7,366,000 41 FY 1998-99 Al . Pavement Preservation $190,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A6. Street Improvements - La Canada, Linda Vista to Lambert 600,000 A17. Street Improvements - La Canada, Hardy to Linda Vista 3,000,000 A20. Marked Police Vehicles and Administration Replacement 300,000 A24. Miscellaneous Traffic Signals 120,000 A27. Topographic Mapping of Town 34,000 Total Assumption Projects for FY 1998-99 $4,354,000 P1. Street Improvement - Tangerine Rd., Monterra to La Canada $125,000 P2. Street Improvement - Tangerine Rd., First Ave. to Monterra 900,000 P9. Long-term Facility Construction 600,000 P13. Mobile Data Terminals 50,000 P16. La Canada Extension, Tangerine to Moore 2,250,000 Total Prioritized Projects for FY 1998-99 $3,925,000 GRAND TOTAL FOR FY 1998-99 $8,279,000 FY 1999-00 Al . Pavement Preservation $200,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A6. Street Improvement - La Canada, Linda Vista to Lambert 5,572,000 A20. Marked Police Vehicles and Administration Replacement 370,000 A24. Miscellaneous Traffic Signals 120,000 Total Assumption Projects for FY 1999-00 $6,372,000 P1. Street Improvement - Tangerine Rd., Monterra to La Canada $1,200,000 P4. Street Improvement - First Avenue, Oracle to Tangerine 600,000 P9. Long-term Facility Construction 400,000 Total Prioritized Projects for FY 1999-00 $2,200,000 GRAND TOTAL FOR FY 1999-00 $8,572,000 42 FY 2000-01 Al. Pavement Preservation $210,000 A2. Spot Safety Improvements 100,000 A3. Sign Replacement Program 10,000 A20. Marked Police Vehicles and Administration Replacement 450,000 A24. Miscellaneous Traffic Signals 120,000 Total Assumption Projects for FY 2000-01 $890,000 P4. Street Improvement - Fist Avenue, Oracle to Tangerine $6,250,000 Total Prioritized Projects for FY 2000-01 $6,250,000 GRAND TOTAL FOR FY 2000-01 $7,140,000 43 THIS PAGE INTENTIONALLY LEFT BLANK V. IMPLEMENTATION The success of a plan or a planning process is measured by the success of its implementation. It is critical that Oro Valley seriously plan and prudently allocate financial resources in accordance with the Oro Valley Capital Improvement Plan. The strategic planning process utilized in the development of this first CIP was difficult to initiate but resulted in an objective process and a community-wide team approach. The following is a discussion of how the Oro Valley Capital Improvement Plan shall be implemented and monitored. A. General Guidelines Adoption - The Oro Valley CIP five year program capital budget shall be reviewed by the Planning and Zoning Commission and adopted by the Town Council. Upon adoption, the Oro Valley CIP will be published and widely distributed. The Oro Valley CIP will be annually updated, reviewed by the Planning and Zoning Commission, and adopted by the Town Council by March of each year. Capital Budget - The capital budget will be used in developing the annual Town budget. The capital budget of the Oro Valley CIP will be the foundation for capital expenditures for the FY 1996-97 Town budget. Quarterly Reports - Department Heads are responsible for preparing quarterly reports on the status of capital projects in the first year capital budget. The reports shall be made to the Town Manager and the Finance Director shall document the status. The Town Manager shall make a report to the Town Council quarterly, or more often if deemed necessary, on the status of the CIP. Technical Advisory Committee - The Technical Advisory Committee, which is comprised of citizens, a utility representative, a council representative, department representatives, board and commission representatives, and town staff shall reconvene three months prior to the adoption of the CIP each year. The purpose of the TAC will be to identify new capital projects to be added to the CIP, review and/or modify of evaluation criteria, evaluation of CIP projects, and production of an updated CIP. The Town of Oro Valley may want to utilize an outside facilitator each year during the project evaluation process to ensure objectivity and consistency in ranking of the projects. (See B. Implementation of the Decision Making Matrix below for more detail) Public Involvement - Citizen involvement should be sought in future updates of the plan. This involvement could entail participation at Town Hall meetings, community surveys, public hearings, focus group meetings, membership on the TAC, newspaper articles, etc. 44 B. Implementation of the Decision Making Matrix Updating the CIP shall take place annually before the creation of the annual budget document. The Technical Advisory Committee (TAC) shall work as a team to evaluate the projects. The Decision Making Matrix will then be used to prioritize the projects. It should3 be noted, that some projects will not proceed all of the way through the process. Routine acquisitions, such as police car replacement, may be considered as "Assumptions" and will l p automatically pass into the proposed budget year as a priority. Also, Projects which are deemed necessary and have received substantial funding from an outside source could be considered as "Assumptions" at this time. These decisions will be made by a consensus of the TAC. The following is the process for carrying out this phase of the Capital Improvements Plan: Step 1: Re-visiting of the Evaluation Criteria. The TAC shall meet to discuss the Evaluation Criteria. At this meeting, it will be decided if the criteria used the previous year are still appropriate to the Town's current situation. Influences from both inside the Town and from external forces could necessitate the elimination, change, or addition of evaluation criteria. After the Evaluation Criteria are agreed upon, the TAC must then analyze the Numerical Weighting Factor given to each criteria. It is the purpose of this factor to prioritize the Evaluation Criteria in order of importance. Factors such as, citizen's changing attitudes and/or governmental mandates may force a change in the Numerical Weighting Factor. When the Evaluation Criteria and their appropriate Numerical Weightings have been agreed upon by the TAC, any changes must be presented to the Town Council for approval before the process can proceed. Presenters to the Council should have the ability to substantiate any changes with factual data. Step 2: Creation of New and Re-evaluation of Existing Project Sheets Project Sheets will be submitted by Department Heads to the TAC for evaluation. Additionally, any projects which were submitted in a previous year(s) and are still considered needs, should be updated and re-submitted. Any changes to the status of the project (i.e. new funding source found, change in departmental priority, etc.) should be included on the Project Sheets to ensure proper evaluation. Department Heads are encouraged throughout the year to aggressively pursue new avenues to enhance the feasibility of projects. Project Sheets must contain the following information to be considered for evaluation: 45 1. Project Name and Department. 2. Description of the Project and why it is necessary. 3. Time line of the proposed Project. 4. Project Budget tied into the time line. 5. Potential and/or existing funding sources. Step 3: Determining the Capital Budget The Town Finance Director shall determine the amount of funds that can be placed in the CIP Capital Account for the pending year. Funding for additional projects can only be allocated after all projects currently underway are accounted for. Step 4: Committee and Department Head Meetings All Assumption Projects which have dedicated annual funding and equipment replacement programs, maintenance programs, etc.) shall have a committee formed to evaluate the best use of the next year's funding. A report of recommendations shall be submitted to the entire TAC for review and discussion at the Project Evaluation Meeting. g Step 5: Evaluation of Projects by the Technical Advisory Committee The TAC shall evaluate all new and re-submitted Project Sheets. Each Project will receive a score from 0-10 in relation to each of the evaluation criteria. The projects will then be given a numerical total and placed in order of priority on a report named CIP Prioritized Projects. This prioritized list will the be broken down into another report named CIP Prioritized Projects - Proposed Funding by Fiscal Year. Step 6: Creation of Fiscal Year Capital Budget After the projects have been prioritized and reports distributed to the TAC, a meeting will be held to determine the Fiscal Year Capital Budget. This budget will recommend which projects should be funded in the next year. The following steps must be taken to evaluate and finance the projects: 1. All Assumed Projects must be funded first and deducted from the Capital Budget. 2. If there are more funds available for Capital Projects, the TAC must then use the CIP Prioritized Projects List to determine which project(s) should be funded. 3. The highest priority project on the CIP Prioritized Projects List must then be identified. These questions need to be asked: Are there other projects rated higher that will be competing for the same funding source in later years? If so, should this money be banked for these projects instead of being spent on 46 this year's top priority? Does this project need to be completed as a preamble to a higher rated project in the future? Is there a financing alternative that could be combined with a higher rated project, which may be a better way to fund the project? If it is determined that the year's top priority project is financially feasible and will notI jeopardize the ability to fund future projects which are rated higher, the Project may be included in the Capital Budget of that year. Should funds remain at this point, the second highest rated Project from the CIP Prioritized Projects List shall be examined in the same fashion. This procedure shall continue until all of that year's Capital Fund has been exhausted or allocated to fund future projects, or if all projects have been funded. Any excess funds will be held for the next year's Capital Budget. Step 7: Disposition of Unfunded Projects In most cases, there will be quite a few projects that do not make it into the Annual Capital Budget either because there is not adequate funding or they have not come out of the Decision Making Matrix with a high priority. These Projects may be updated and re- submitted for the next year, or subsequent years, when the TAC Evaluation Process begins for the next Fiscal Year. Step 8: Annual Review of the Capital Improvements Plan Update the five-year CIP by adding or revising capital projects and adding an additional fiscal year and a new Capital Budget for the first fiscal year. The updated CIP is presented to the Planning and Zoning Commission for review and to the Town Council for review and adoption. 47