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HomeMy WebLinkAboutPackets - Council Packets (1716)Town Council Meeting Regular Session June 1, 2022 Town Council Meeting Announcements Upcoming Meetings Meetings are subject to change. Check the Town website for meeting status. Historic Preservation Commission June 6 at 6 p.m. Hopi Conference Room Planning and Zoning Commission June 7 at 6 p.m. Council Chambers Water Utility Commission Regular Session –CANCELED June 13 at 5 p.m. Hopi Conference Room Town Council Regular Session June 15 at 6 p.m. Council Chambers Town Council Meeting Regular Session June 1, 2022 Water Rate Study and Long-Term Financial Plan June 2022 Public Hearing 13 Public Hearing: Adoption of Proposed Water Rates Background on Rates 14 Facts about Water Rates in the 21st Century o Average utility has been increasing rates 5-6% per year, trend expected to continue o AWWA forecasts that water rates across the U.S. will triple in the next 15 years o Rate adjustments are primarily due to reasons beyond a utility’s control – inflation, Capital Improvement Plans, etc. o 30-40% of utilities charge rates that do not cover their costs 15 Current Water Rate Structure –July 2021 Base Charge 5/8"18.99$ Commodity Rate (per 1,000 Gallons) 3/4"28.48 Tier 1 2.40 1"47.46 Tier 2 3.35 1 1/2"94.91 Tier 3 4.80 2"151.87 Tier 4 6.70 3"303.71 4"474.56 6"949.12 Commodity Rate (per 1,000 Gallons) 8"1,518.60 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Commercial, Turf & MF ($/1k Gal)2.40 Tier 3 4.80 Tier 4 6.70 Construction ($/1,000 Gal.)7.29 Potable Water Meter Base Charge Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 5/8" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" 16 Historical Rate Increases (%) Calendar Year 17 Monthly Residential Charge Comparison 7,000 Gallons Water $35.79 $39.80 $41.61 $64.26 $0 $10 $20 $30 $40 $50 $60 $70 Oro Valley 5/8"MeterPhoenixFlowing Wells Irr.DistrictMammothTucsonMaranaState SurveyMedianMetro-mainMetro-HubPima CountyFlagstaffAnway ManvilleWater Co.Arizona WaterCo. (Oracle) 18 Public Hearing: Adoption of Proposed Water Rates Water Customers and Volumes 19 Actual and Forecast Potable Water Accounts Annual Growth ≈ 0.8%, 150 –330 Accounts 20 Actual and Forecast Potable Water Billed Consumption 2,218,076,000 2,350,463,880 2,498,376,903 2,000,000,000 2,100,000,000 2,200,000,000 2,300,000,000 2,400,000,000 2,500,000,000 2,600,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 21 Public Hearing: Adoption of Proposed Water Rates Water Current and Forecast Cost of Service 22 Key Assumptions Driving Forecast Financial and Rate Plan o Most personnel and operating expenses increase 2% per year o Certain expenses increase at higher rates and/or are tied to increases in accounts and volumes o Biggest impacts on rate plan: •Central Arizona Project Annual Costs •Funding of $18.8 million CIP over next five years 23 Capital Improvement Plan: FY 2022 –FY 2026 Total = $18,881,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Water NWRRDS $6,941,000 $11,940,000 24 Forecast Cost of Service and Net Revenue Requirement Total Operating Capital Debt Transfers &Cost of Expenses Outlays Service Contingencies Service POTABLE WATER Revenue Requirement TY 2022 12,310,079$ 3,511,650$ 4,935,311$ -$ 20,757,039$ FY 2023 12,796,184 1,670,650 5,380,668 - 19,847,502 FY 2024 13,420,608 3,250,650 4,279,034 - 20,950,293 FY 2025 13,265,139 3,250,650 4,026,510 - 20,542,299 FY 2026 13,733,851 3,250,650 4,027,705 - 21,012,205 FY 2027 14,097,050 3,250,650 3,878,868 - 21,226,568 FY 2028 14,527,577 3,250,650 2,234,774 - 20,013,001 FY 2029 14,973,661 3,250,650 1,951,588 - 20,175,900 FY 2030 15,435,727 3,250,650 1,224,556 - 19,910,933 FY 2031 15,919,371 3,250,650 1,113,865 - 20,283,887 $17,387,509 16,781,235 $15,500,000 $16,000,000 $16,500,000 $17,000,000 $17,500,000 $18,000,000 TY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 POTABLE WATER Revenue Requirement 25 Public Hearing: Adoption of Proposed Water Rates Proposed Water Rate Plan 26 Notes on Rate Proposal –Potable Water Rates o Many alternative rate plans evaluated by staff, finance sub committee and Water Utility Commission o Assumes no change in rate structure; uniform percentage adjustments for base and volume charges o Rates assumed effective July 1 o Plan forecasts additional rate adjustments required in 2023 –2026 o Beyond 2026, debt retirements forecast to free up cash flow, which would allow for either limited additional rate adjustments or greater capital investment 27 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 5/8" Monthly Base Charge 5/8"18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ Commodity Rate/1,000 Gal Tier 1 1 7,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 7,001 16,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 16,001 32,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 32,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3/4" Monthly Base Charge 3/4"28.48$ 29.90$ 31.39$ 32.96$ 34.61$ 36.00$ Commodity Rate/1,000 Gal Tier 1 1 10,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 10,001 24,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 24,001 48,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 48,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1" Monthly Base Charge 1"47.46$ 49.83$ 52.32$ 54.94$ 57.68$ 59.99$ Commodity Rate/1,000 Gal Tier 1 1 17,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 17,001 40,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 40,001 80,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 80,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 28 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 1.5" Monthly Base Charge 1.5"94.91$ 99.66$ 104.64$ 109.87$ 115.36$ 119.98$ Commodity Rate/1,000 Gal Tier 1 1 35,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 35,001 80,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 80,001 160,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 160,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 2" Monthly Base Charge 2"151.87$ 159.46$ 167.44$ 175.81$ 184.60$ 191.98$ Commodity Rate/1,000 Gal Tier 1 1 56,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 56,001 128,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 128,001 256,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 256,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3" Monthly Base Charge 3"303.71$ 318.90$ 334.84$ 351.58$ 369.16$ 383.93$ Commodity Rate/1,000 Gal Tier 1 1 112,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 112,001 256,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 256,001 512,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 512,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 4" Monthly Base Charge 4"474.56$ 498.29$ 523.21$ 549.37$ 576.83$ 599.91$ Commodity Rate/1,000 Gal Tier 1 1 175,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 175,001 400,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 400,001 800,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 800,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 29 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Commercial, Turf & Multifamily Monthly Base Charge 5/8"18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 2.40 2.52 2.65 2.78 2.92 3.03 Construction Rate/1,000 Gal 1 Above 7.29 7.65 8.04 8.44 8.86 9.22 30 Rate Plan –Impact on Monthly Bills FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential Monthly Charges - 5/8" 7,000 Water 35.79$ 37.58$ 39.46$ 41.43$ 43.50$ 45.24$ Increase -- $1.79 1.88 1.97 2.07 1.74 Increase -- %5.0%5.0%5.0%5.0%4.0% 10,000 Water 45.84 48.13 50.54 53.07 55.72 57.95 Increase -- $2.29 2.41 2.53 2.65 2.23 Increase -- %5.0%5.0%5.0%5.0%4.0% Commercial Monthly Charge -- 2" 50,000 Water 271.87 285.46 299.74 314.72 330.46 343.68 Increase -- $13.59 14.27 14.99 15.74 13.22 Increase -- %5.0%5.0%5.0%5.0%4.0% 31 Presentation Summary Why is Rate Plan Beneficial to Oro Valley? o Will enable utility to continue operating on a stand-alone basis and independent of general fund assistance o Will result in financially-healthy utility that has ability to fund operations and capital needs o Ensures that ratepayers pay only what it costs to provide water service o Will allow $18.8 million of capital investment to improve quality of service and provide a well-functioning system for future generations Other water rates and fees 32 No change is recommended for: Groundwater preservation fees for potable and reclaimed water Reclaimed water base and commodity rate 33 Public Hearing: Adoption of Proposed Water Rates Questions and Discussion Town Council Meeting Regular Session June 1, 2022 FY 2022/23 Tentative Budget Adoption June 1, 2022 FY 2022/23 TENTATIVE BUDGET Tentative Budget brings forward all changes from Manager’s Recommended Budget as outlined in the Council communication, including: Updated and revised CIP budget figures Full implementation of classification and compensation study Increased budget for gasoline costs If approved, Tentative Budget establishes the overall expenditure limitation Structurally balanced budget reflects the careful allocation of available resources FY 2022/23 REVENUE SOURCES: $147.7M $45.7M, 31% $28.7M, 19% $21.7M, 15% $15.4M, 10% $12.7M, 9% $12.1M, 8% $7.2M, 5% $2.4M, 2% Use of Fund Balance Sales Taxes State Shared Revenue Water Sales Charges for Services Outside Funding Sources Miscellaneous Fines, Licenses & Permits - 10 20 30 40 50 Millions FY 2022/23 EXPENDITURE SOURCES: $147.7M $46.5M, 31.5% $41.7M, 28.3% $34.7M, 23.5% $15.5M, 10.5% $9.3M, 6.3% Capital Personnel O&M Contingency Reserves Debt Service - 10 20 30 40 50 Millions FY 2022/23 CAPITAL IMPROVEMENT PROGRAM (CIP): $45.1M $24.4M, 54% $7.2M, 16% $4.7M, 11% $4.7M, 11% $1.7M, 4% $1.5M, 3% $0.7M, 1% $0.2M, 0% - 5 10 15 20 25 30 Parks & Recreation Streets/Roads Water System Other Public Facilities Vehicle Replacement Technology Stormwater Public Safety Millions FY 2022/23 GENERAL FUND OVERVIEW $34.9M, 72.6% $11.8M, 24.5% $1.4M, 10.4% - 5 10 15 20 25 30 35 40 Personnel O&M CapitalMillionsGeneral Fund Expenditures: $48.1 Million * Excludes budgeted contingency of $5.0M $25.3M, 49.8% $17.6M, 34.7% $3M, 6% $2.2M, 4.4% $1.6M, 3.2% $1M, 1.9% 0 5 10 15 20 25 30 35 40 MillionsGeneral Fund Revenue: $50.7 Million FINAL NOTES AND NEXT STEPS Tentative Budget adoption sets the maximum spending ceiling at $147,704,287 Expenditure authority may only be reallocated or reduced Council has authority to amend budget throughout the fiscal year Publish Tentative Budget for two consecutive weeks Final Budget approval and public hearing set for June 15th regular session Questions? Town Council Meeting Regular Session June 1, 2022 Proposed 18-unit subdivision on the East corner of Morning Vista Dr. & Rancho Vistoso Blvd. June 1, 2022 Purpose Conceptual Site Plan and Landscape Plan for 18 dwelling subdivision Planning and Zoning Commission recommends conditional approval Code compliant design must ultimately be approved High Density Low Density Golf / Rec Golf / Rec Open Space High Density Monterey Homes at Rancho Vistoso Monterey Homes at Rancho Vistoso Honey Bee Canyon Park Project Site Stone Canyon Vistoso Golf Course Conceptual Design Plans Site & Landscape Plans 18 dwelling Residential Subdivision Attached and detached product Meets or exceeds all code requirements Heights –34’ allowed, 16’ planned Building orientation for lot 18 Preserving natural features Bufferyards: Meet requirements along roadways Extra area and plantings along adjacent residential developments Parking –37 required and 41 provided Public Participation Informational Video –May 4, 2021 First Neighborhood Meeting –May 20, 2021 Privacy, proximity to adjacent homes Sloped area and preservation Traffic generation and access Second Neighborhood Meeting –March 30, 2022 Privacy, proximity to adjacent homes As the result of continued work with Town, resolved with support from adjacent neighbors Planning and Zoning Commission Meeting –May 3, 2022 Planning and Zoning Commission Planning and Zoning Commission recommend approval with, “the condition agreed to by the applicant, that lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to better accommodate a standard vehicle.” Applicant increased size of driveways for lots 14-17 and added 2 guest spaces Parking meets all code requirements Summary and Recommendation Staff finds the applicant’s proposal meets Zoning Code Design Principles Applicable Design Standards Planning and Zoning Commission recommends approval with, “The condition agreed to by the applicant, that lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to better accommodate a standard vehicle.” Staff finds the condition has been met Open Space Requirements Preserved Encroached Accepted Trade Parking Applying Attached Standards Only (Method applied)Total Regular spaces required 32 Guest spaces required 5 Total administratively allowable 44 Total required 37 Total provided 41 Applying Mixed (Attached and Detached) Standards Total Regular spaces required 32 Guest spaces required (including detached driveways)8 Total administratively allowable 48 Total required 40 Total provided 41 Parking Previous –16’ x 10’Planned –18’ x 11’ Residences at Morning Vista TOWN COUNCIL PUBLIC MEETING JUNE 1, 2022 Conceptual Review •Site and Landscape Plan •Architectural Plans Context Map Project Site Rancho Vistoso Land Use Map HDR Open Space Golf/Rec MHDR VLDR LDR MDR Resort C-1 C-2 CPI Hospital Religious Facility Cultural/Institutional Conceptual Site and Landscape Plans Conceptual Site/Landscape Plan Project Area: 3.5 acres Number of Townhomes: 18 Project Density: 5.14 RAC Permitted Density (HDR): 8-17 RAC Proposed Building Height: 16 feet/1 story Permitted Building Height: 34 feet/3 stories Conceptual Architecture Materials & Color Palette Conceptual Architectural Design FRONT ELEVATION Conceptual Architectural Design FRONT ELEVATION Conceptual Architectural Design FRONT ELEVATION Conceptual Architectural Design STREET VIEW Conceptual Architectural Design STREET VIEW Conceptual Architectural Design VIEW FROM NORTHEAST Conceptual Architectural Design VIEW FROM NORTHWEST Conceptual Architectural Design VIEW FROM SOUTHEAST Conceptual Architectural Design VIEW FROM SOUTHWEST Public Outreach Comments •Privacy –Lot 18 •Protected Hillside •Grading •Lighting •Traffic Volume •Access •Drainage Conceptual Site/Landscape Plan Plan shown to neighbors with Lot 18 in original configuration. Revised Conceptual Site/Landscape Plan Reconfigured Lot 18 Three visitor spaces external to driveway spaces Meets Code Conceptual Site/Landscape Plan Larger driveways Lots 14-17 and 5 visitor parking spaces. EXCEEDS CODE Question s? Questions Town Council Meeting Regular Session June 1, 2022 Northern Heights Street Dedication Request June 1, 2022 Northern Heights Street Dedication Request 1 Location Map Northern Heights HOA wishes to dedicate the following streets to the Town: Tara Danette Drive Faith Dawn Court Austin Nikolas Court Town Engineer’s Initial Assessment Northern Heights Street Dedication Request These streets appear to be in fair repair and structurally sound The private street system dead-ends within the Northern Heights subdivision and offers no cross-connection to other streets or neighborhoods These streets do not meet the dimensional standards of typical Town of Oro Valley residential width requirements and are narrow: Northern Heights street width is approximately 24 ft Oro Valley standard residential street width is 28 ft There are numerous abrupt speed bumps installed on these streets Town Engineer’s Recommendation: Not to accept the Streets for Public Maintenance Northern Heights Street Dedication Request These streets do not provide an overall benefit to the community at large. This request only financially benefits the immediate neighborhood being served by said streets The streets are not constructed to Town standard widths The presence of the numerous speed bumps could be a liability to the Town: For emergency response time Potential damage to vehicles Pedestrian tripping hazards Northern Heights Street Dedication Request Questions Comments Town Council Meeting Regular Session June 1, 2022 Oro Valley Water Utility Reclaimed Water Availability & System Expansion June 1, 2022 The Oro Valley Reclaimed Water System 90 Reclaimed water system: Reclaimed entitlement is determined annually based on annual potable water consumption Wheeled through Tucson Water’s reclaimed system to OV Several IGA’s detail reclaimed water deliveries Oro Valley Reclaimed Assets: 1 Reservoir 2 Booster Stations 15 miles of reclaimed water transmission mains Reclaimed Water Entitlement: Varies between 1,700 –2,000 acre-ft./year Consumption varies between 1,700 –2,300 acre-ft./year If reclaimed water consumption exceeds the annual entitlement Oro Valley can purchase additional resource up to the limits of the Tucson Water’s system capacity. The Oro Valley Reclaimed Water System 91 Current reclaimed water system: Irrigates 72 holes of turf for golf Irrigates 1 school playground Irrigates athletic fields at Naranja park Irrigates Splendido’s landscaping Serves several hydrants for construction purposes Expansion of the reclaimed water system: Feasibility analysis: Reclaimed water available to support expansion Capital investments –Areas to receive reclaimed water, main extensions, boosters, pressure control valves, and metering stations Planned years of service of expanded water system Cost to the rate payer Future reclaimed water use alternatives and opportunities Desired outcome: Reduce the use of potable water for irrigation / preserve groundwater Maximize the beneficial use of our reclaimed water resource 92 Questions?