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HomeMy WebLinkAboutMinutes - Municipal Property Corporation Board - 1/31/2001 MINUTES OF THE ORO VALLEY MUNICIPAL PROPERTY CORPORATION STUDY SESSION JANUARY 31, 2001 ORO VALLEY TOWN COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE CALL TO ORDER: 7:03 p.m. PRESENT: Steve Lucas, President Tom Vetrano, Treasurer Bob Horn, Member Also present: Paul Loomis, Mayor Chuck Sweet, Town Manager David Andrews, Finance Director Alan Forrest, Water Utility Director Jeff Weir, Economic Development Administrator Brent Sinclair, Community Development Director Mark Reader, Bond Underwriter, Peacock, Hislop, Staley& Given Timothy Pickrell, Bond Counsel, Snell & Wilmer Keith Hoskins, Bond Counsel, Gust & Rosenfeld REVIEW AND DISCUSSION OF PROPOSED ISSUANCE OF $11,535,000 OF EXCISE TAX REVENUE BONDS, SERIES 2001 Finance Director David Andrews stated that on February 7, 2001, the Town Council will consider a resolution granting preliminary approval for financing 3 projects in the amount of$11,535,000 of Excise Tax Revenue Bonds, Series 2001. If the Town Council approves this resolution, a final resolution and related bond documents would be brought before the Town Council and MPC Board of Directors on March 21, 2001 for final consideration. The following 3 projects were reviewed by Brent Sinclair, Community Development Director and Alan Forrest, Water Utility Director: Library Community Development Director Brent Sinclair showed a site plan and a rendering of the proposed design of the 7.5 acre library site to be located just north of the Oro Valley Town Hall. He explained that the library will open with 15,000 square feet and a 10,000 square foot shell that will be built out when funds become available. He explained that the library will be an affiliate of the Tucson-Pima Library System, which allows us to share resources with the other libraries, however Oro Valley will hire its own employees and set out its own policies. Mr. Sinclair stated that 50% of operations and maintenance expenses will be funded by the county library tax. He pointed out that Pima County will 01/31/01 Minutes,Oro Valley Municipal Property Corporation 2 give Oro Valley$2 million of bond funds for the construction of the library as stated in the IGA between Oro Valley and Pima County. Total cost of construction has increased from $4 million dollars to $5 million dollars due to the community's demand for a library larger than 15,000 square feet. Water System Improvements Water Utility Director Alan Forrest referred to the approved Oro Valley Potable.Water System Master Plan that identified and established the system improvements needed to meet the community's demands. He explained that the goal is to provide a higher level of service than what is required, such as: • Water pressure • Fire flow/hydrant capacity • Storage capacity Mr. Forrest explained that these improvements will be funded by water rates. Mr. Forrest explained that the projects included in the bond financing contain $5,466,250 of improvements including: • Replacement of two wells • Additional reservoir capacity • Additional mains Mr. Forrest stated that he will distribute the Oro Valley Potable Water System Master Plan to members of the MPC. Water Rights Acquisition Mr. Forrest explained the intent of the 1980 Groundwater Management Act and that by 2025 Arizona must replenish any groundwater pumped with a renewable water supply. Mr. Forrest referred to the Town's Task Force that studied this issue and prepared a report for Renewable Water Supplies. Mr. Forrest explained the 1979 Northwest Area Water Agreement with City of Tucson and the problems Oro Valley has encountered from that agreement. Discussion followed regarding steps that have been taken to resolve this issue with City of Tucson that should result in the city transferring CAP rights entitled to Oro Valley in the amount of 4,454 AF. Mr. Forrest explained that the Town's priorities include: 1. Renewable water for turf irrigation of golf courses in the next 3 —5 years. 2. Replace potable demand in next 5 — 10 years. The two options that are being looked at are: 01/31/01 Minutes,Oro Valley Municipal Property Corporation 3 1. Reclaimed water 2. CAP water Mr. Forrest stated that the Town is working with the City of Tucson to acquire the rights to keep effluent in Oro Valley. Discussion followed regarding some of the options outlined in the Renewable Water Report, which will be made available to members of the MPC. Bond Counsel Keith Hoskins explained the prior financing that the MPC had approved in 1996 and 1999. He described the financing documents that will be coming before the MPC on 3-21-01. Bond Underwriter Mark Reader distributed a handout entitled "Bond Buyer's Index of 20 Municipal Bonds" showing a 10 week Trend in the Marketplace. He explained that the economy is slowing down, therefore interest rates are lower, which is good news for Oro Valley. He pointed out that the Town's bond rating has been upgraded from an A-to an A. Mr. Reader stated that the bond sale will be advertised locally during the week of March 12, 2001 so local residents can buy bonds. He anticipated that the closing and depositing of the money with the trustee will occur in early April. REVIEW AND DISCUSSION OF AGENDA ITEMS FOR MPC BOARD MEETING ON MARCH 21, 2001 Discussion followed regarding setting the next MPC Board meeting for 3-21-01 at 4:00 p.m. Mr. Reader explained that on the 21St of March he will review the documents and update the Board on the condition of the market. Once approval is secured by the MPC and the Town Council they will go to market during the week of the 26th of March and staff will be authorized to proceed. ADJOURNMENT A MOTION was made by Tom Vetrano and SECONDED by Bob Horn to adjourn the study session at 8:35 p.m. Motion carried 3 —0. Respectfully submitted, .ti KathYyn Cuvelier, CMC Town Clerk