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Home My WebLink AboutPackets - Council Packets (139) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION December 17, 2014 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS COUNCIL REPORTS DEPARTMENT REPORTS The Mayor and Council may consider and/or take action on the items listed below: ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING INFORMATIONAL ITEMS 1. Letter of Appreciation - Oro Valley Police Department CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card. CONSENT AGENDA (Consideration and/or possible action) A. Minutes - December 3, 2014 B. Fiscal Year 2014/15 Financial Update through October 2014 C. Resolution No. (R)14-65, approving a Facility Lease Agreement between the Town of Oro Valley and the Friends of the Oro Valley Public Library REGULAR AGENDA 1. RESOLUTION NO. (R)14-66, APPROVING THE ACQUISITION OF THE EL CONQUISTADOR COUNTRY CLUB, GOLF, AND TENNIS FACILITIES AND AUTHORIZING THE TOWN MANAGER TO TAKE THE NECESSARY ACTIONS TO COMPLETE THE ACQUISITION 2. PUBLIC HEARING: ORDINANCE NO. (O)14-17, AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY TO INCREASE THE LOCAL TRANSACTION PRIVILEGE TAX (TPT) RATE FROM 2% TO 2.5% IN VARIOUS CATEGORIES 3. DISCUSSION AND POSSIBLE ACTION TO INITIATE THE 60-DAY PUBLIC NOTICE PROCESS FOR A FUTURE DISCUSSION REGARDING NEW AND INCREASED RECREATION FEES FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H) CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card. ADJOURNMENT POSTED: 12/10/14 at 4:30 p.m. by mrs When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Town Council during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Town Council on any item(s) on this agenda, please complete a speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience”, please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Mayor announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. Please organize your speech, you will only be allowed to address the Council once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience” you may address the Council on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. Town Council Regular Session Item # 1. Meeting Date:12/17/2014 Submitted By:Catherine Hendrix, Police Department Information Subject Letter of Appreciation - Oro Valley Police Department Attachments Corr Letter of Appreciation Chief Danny Sharp Nov. 24, 2014 ___ O=ro,,-Valley Police Department Dear Chief, I recently completed the OVPD Citizen Academy. I wanted to let you know how valuable and worthwhile it was, not only as a town citizen, but more importantly, as a new citizen volunteer for the police department. All major areas of the department were covered, introducing us to the many areas of responsibility which are superbly handled by your employees. I would like to commend Officer Jodi Stevens for her work in putting this program together and making it work seamlessly for the 12 weeks of the course. I have conducted many dozens of police training sess ions during my time as a prosecutor and FBI agent, and I know how logistically challenging things can get when trying to coordinate other speakers. There was never any "down time" and I very much enjoyed the presentations and the effort expended to make this happen. The Citizen Academy allowed me to meet several members ofthe department with whom I had not yet met during my duties as a citizen volunteer. This was very valuable to me and I very much enjoyed thi s. As part of the OVPD C itizen Academy, I had the opportunity on November 12 for a ride-along with Officer Mike Kelley . I wanted to let you know that I found him to be very profess ional , dedicated, courteous and helpful. He took the time to explain the workings of his vehicle's computer and answered all of my questions. I observed him interact with several citize n s during the calls he received during my four hours with him, and he is most certainly a credit to the profession and to your department. I would like to commend him for hi s work and for putting up with an old, retired guy for several hours. I would also lik e to commend Lead Police Officer Trey Smith, for taking the time to elaborate on certain police actions taken while I was riding along with Officer Kelley. I appreciated the consideration shown to me . In short, thank you for leading such an outstanding police department and for allowing mere citizens to attend the Citizen Academy to learn th e inner workings of your department. It was time well spent and it was greatly appreciated. I'm sure I speak for the many membe rs of the class who thank you for makin g it happen for us. Please convey my spec ial thanks to Officers Stevens, Smith and Kelley. Sincerely, Kevin Corr CVAP 548 Town Council Regular Session Item # A. Meeting Date:12/17/2014 Requested by: Julie Bower Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Minutes - December 3, 2014 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve, approve with the following changes) the December 3, 2014 minutes. Attachments 12-3-14 Draft Minutes 12/3/14 Minutes, Town Council Regular Session 1 MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION December 3, 2014 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER Mayor Hiremath called the meeting to order at 5:00 p.m. ROLL CALL PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Brendan Burns, Councilmember Bill Garner, Councilmember Joe Hornat, Councilmember Mary Snider, Councilmember Mike Zinkin, Councilmember EXECUTIVE SESSION MOTION:A motion was made by Councilmember Zinkin and seconded by Councilmember Snider to go into Executive Session at 5:01 p.m. pursuant to A.R.S. 38- 431.03(A)(7) for the purpose of discussing the purchase or lease of real property. MOTION carried, 7-0. Mayor Hiremath said the following individuals would join Council in Executive Session: Town Manager Greg Caton, Town Attorney Kelly Schwab, Town Clerk Julie Bower, Legal Services Director Tobin Sidles, Finance Director Stacey Lemos, Development and Infrastructure Services Director Paul Keesler and the Parks and Recreation Director Kristy Diaz-Trahan. REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Hiremath reconvened the meeting at 6:00 p.m. ROLL CALL 12/3/14 Minutes, Town Council Regular Session 2 PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Brendan Burns, Councilmember Bill Garner, Councilmember Joe Hornat, Councilmember Mary Snider, Councilmember Mike Zinkin, Councilmember PLEDGE OF ALLEGIANCE Mayor Hiremath led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Communications Administrator Misti Nowak announced the upcoming Town meetings and events. COUNCIL REPORTS Councilmember Zinkin reported that he attended the National League of Cities where they discussed the Marketplace Fairness Act. DEPARTMENT REPORTS Town Clerk Julie Bower announced that new artwork was on display in the Council Chambers by artists Anne Palmer, Kay Mitman and Pat Shattuck. ORDER OF BUSINESS Mayor Hiremath said the agenda would stand as posted. INFORMATIONAL ITEMS 1.Councilmember Zinkin - NLC Congress of Cities Conference Trip Report CALL TO AUDIENCE No comments were received. CONSENT AGENDA Councilmember Snider requested that item (D) be removed from the Consent Agenda for a comment. A.Minutes - November 19, 2014 12/3/14 Minutes, Town Council Regular Session 3 B.Approval of 2015 Regular Town Council Meeting Schedule C.Approval of Council liaison assignments E.Reinstatement of the December 17, 2014, Regular Session Town Council Meeting F.Resolution No. (R)14-59, authorizing a Memorandum of Understanding (MOU) with the City Court of the City of Tucson for the Regional Municipalities Veteran's Treatment Court G.Resolution No. (R)14-60, providing notice of intent to increase water rates, fees and charges for the Oro Valley Water Utility MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Zinkin to approve Consent Agenda items (A)-(C) and (E)-(G). MOTION carried, 7-0. D. (Re)appointments to various boards and commissions Councilmember Snider and Councilmember Hornat recognized the newly appointed Boards and Commission members. MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Snider to approve item (D). MOTION carried, 7-0. REGULAR AGENDA 1.NOMINATION AND ELECTION OF VICE MAYOR Councilmember Hornat nominated Vice Mayor Lou Waters to serve as Vice Mayor for 2015, seconded by Councilmember Snider. Councilmember Garner nominated Councilmember Hornat to serve as Vice Mayor for 2015, seconded by Councilmember Zinkin. Councilmember Hornat declined the nomination. MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Snider to approve the nomination of Vice Mayor Lou Waters as Vice Mayor for 2015. MOTION carried, 7-0. 2.PRESENTATION AND ACCEPTANCE OF THE TOWN’S ANNUAL FINANCIAL 12/3/14 Minutes, Town Council Regular Session 4 AUDIT FOR FISCAL YEAR ENDING JUNE 30, 2014 Town Finance Director Stacey Lemos gave an overview of the Town's annual financial audit for fiscal year ending June 30, 2014 and introduced Mr. Corey Arvizu, CPA and Partner with Heinfeld, Meech & Co., P.C. Mr. Arvizu discussed the highlights of the completed financial audit for the Town for fiscal year ending June 30, 2014. Discussion ensued amongst Council, staff, and Mr. Arvizu regarding the annual financial audit for fiscal year ending June 30, 2014. MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Snider to accept the Town's financial audit for the fiscal year ending June 30, 2014. MOTION carried, 7-0. 3.DISCUSSION AND POSSIBLE DIRECTION REGARDING QUESTIONS CONCERNING POLICE DEPARTMENT BUDGET ITEMS Discussion ensued amongst Council and Town Attorney Kelly Schwab regarding the procedure for allowing Councilmembers to show a PowerPoint presentation. MOTION:A motion was made by Councilmember Burns and seconded by Councilmember Zinkin to suspend the rules of the presiding officer and to allow the PowerPoint. MOTION failed, 3-4 with Mayor Hiremath, Vice Mayor Waters, Councilmember Hornat, and Councilmember Snider opposed. Councilmember Zinkin expressed his concerns regarding various Police Department budget items. Discussion ensued amongst Council and staff regarding the Police Department budget items. Mayor Hiremath suggested that all questions regarding Police Department budget items be submitted to the Town Manager for future discussion during the Town's Budget Session. 4.AMENDING SECTION 16-1-2 PARK OPERATIONS OF THE ORO VALLEY TOWN CODE a.RESOLUTION NO. (R)14-61, DECLARING THE PROPOSED AMENDMENT TO THE ORO VALLEY TOWN CODE SECTION 16-1-2, PARK OPERATIONS, 12/3/14 Minutes, Town Council Regular Session 5 PROVIDED AS "EXHIBIT A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD MOTION:A motion was made by Councilmember Zinkin and seconded by Councilmember Burns to approve Resolution No. (R)14-61, declaring the proposed amendments to the Oro Valley Town Code section 16-12, Park Operations, provided as "Exhibit A" within the attached resolution and filed with the Town Clerk, a public record. MOTION carried, 7-0. b.PUBLIC HEARING: ORDINANCE NO. (O)14-16, AMENDING TOWN CODE 16- 1-2 PARK OPERATIONS Parks and Recreation Director Kristy Diaz-Trahan gave an overview of item 4b. Discussion ensued amongst Council and staff regarding amending Town Code 16-1-2 Park Operations. Mayor Hiremath opened the public hearing. No comments received. Mayor Hiremath closed the public hearing. Discussion ensued amongst Council and staff regarding item #4b. MOTION:A motion was made by Councilmember Snider and seconded by Councilmember Hornat to approve Ordinance No. (O)14-16, amending Town Code 16- 1-2 Park Operations with the provision that public feedback is monitored through Constituent Services and revisited quickly if needed. MOTION carried, 6-1 with Councilmember Burns opposed. 5.RESOLUTION NO. (R)14-62, AUTHORIZING AND APPROVING THE PURCHASE OF LONG-TERM STORAGE CREDITS FROM THE BUREAU OF RECLAMATION Water Utility Director Philip Saletta gave an overview of the purchase of Long-Term Storage Credits from the Bureau of Reclamation that included the following: -Bureau of Reclamation Letter -Current & Projected Town of Oro Valley Water Utility Storage Credits -Storage Accounts Management and Use -Cost Comparison -Purchase of Long-Term Storage Credits 12/3/14 Minutes, Town Council Regular Session 6 Discussion ensued amongst Council and Mr. Saletta regarding item #5. MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Garner to approve Resolution (R)14-62, authorizing and approving the purchase of Long-Term Storage Credits from the Bureau of Reclamation. MOTION carried, 7-0. 6.PUBLIC HEARING: REQUEST FOR A REVISION TO AN APPROVED REZONING FROM R1-144 TO R1-7 FOR A 120-LOT SINGLE-FAMILY DEVELOPMENT ON APPROXIMATELY 45 ACRES, LOCATED EAST OF IRONWOOD RIDGE HIGH SCHOOL ON THE SOUTH SIDE OF NARANJA DRIVE, BY REQUESTING TO UTILIZE THE BUILDING SETBACK REDUCTION ENABLED BY THE ENVIRONMENTALLY SENSITIVE LANDS (ESL) SECTION OF THE ZONING CODE Interim Planning Director Bayer Vella gave an overview of item #6 that included the following: -Environmentally Sensitive Lands Flexible Design Options -Conservation Subdivision Design -Public Input Discussion ensued amongst Council and staff regarding item #6. Mayor Hiremath opened the public hearing. No comments received. Mayor Hiremath closed the public hearing. Discussion continued amongst Council and staff regarding item #6. MOTION:A motion was made by Councilmember Zinkin and seconded by Councilmember Hornat to approve the applicant's request to reduce minimum side yard setbacks from 7.5 feet to 5 feet, finding that the request is not consistent with the objectives of the Environmentally Sensitive Lands section of the zoning code. MOTION carried, 7-0. 7.DISCUSSION AND POSSIBLE DIRECTION REGARDING THE ACQUISITION OF REAL PROPERTY FOR RECREATIONAL PURPOSES 12/3/14 Minutes, Town Council Regular Session 7 Town Manager Greg Caton gave a presentation regarding the acquisition of real property for recreational purposes that included the following: -Opportunity -Community Survey Results June 2014 FMR Associates, Inc. Parks and Recreation Director Kristy Diaz-Trahan gave an overview of the proposed property that included the following: -The Property Community & Recreation Center -The Property Golf, Tennis and Restaurant -Property Description Finance Director Stacey Lemos gave an overview of the ownership and management plan that included the following: -Revenue and Expenses Community & Recreation Center -Revenue and Expenses Vendor Contract Town Manager Greg Caton gave an overview of the needed capital improvements that included the following: -Capital Improvements - Facilities 5-year forecast -Capital Improvements - Golf 5-year forecast Ms. Lemos gave an overview of the financing recommendation - acquisition, operations and capital. Mr. Caton discussed the implementation strategy and timeline for the proposed acquisition of real property for recreational purposes. Discussion ensued amongst Council and staff regarding item #7. Senior Vice President of Global Business Development for Troon, Scott Van Newkirk, addressed questions and concerns from Council. The following individuals spoke on item #7. Oro Valley resident Chris DeSimone Oro Valley resident Dick Johnson Bill Weltschatz Oro Valley resident Melanie Barrett Oro Valley resident Donald Bristow Mr. Caton addressed questions regarding the possible acquisition of the real property. Discussion ensued amongst Council and staff regarding item #7. 12/3/14 Minutes, Town Council Regular Session 8 Mayor Hiremath directed staff to continue research until this item is revisited at the December 17th, 2014 Council meeting. FUTURE AGENDA ITEMS Councilmember Snider requested a future agenda item to discuss and provide possible direction regarding Councilmembers presentations at a public meeting, seconded by Mayor Hiremath. CALL TO AUDIENCE No comments were received. ADJOURNMENT MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Burns to adjourn the meeting at 8:58 p.m. MOTION carried, 7-0. Prepared by: _________________________ Michelle Stine Senior Office Specialist I hereby certify the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 3rd day of December, 2014. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ______________________, 2014. ____________________________ Julie K. Bower, MMC Town Clerk Town Council Regular Session Item # B. Meeting Date:12/17/2014 Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: Fiscal Year 2014/15 Financial Update through October 2014 RECOMMENDATION: This item is for information only. EXECUTIVE SUMMARY: In the General Fund (see attachment A), revenues collected through October totaled $9.9 million, or 30.8% of the budget amount of $32.3 million. Year-to-date expenditures through October totaled $9.8 million, or 30.3% of the budget amount of $32.5 million. The adopted FY 2014/15 General Fund budget included a transfer out of one-time revenues in the amount of $2.5 million to the General Government CIP Fund for capital projects. Please note that year-to-date expenditures now include approximately one-third of this budgeted transfer out to the General Government CIP Fund of approximately $883,000. In the Highway Fund (see attachment B), revenues collected through October totaled $990,248, or 33.4% of the budget amount of $3.0 million. Year-to-date expenditures through October totaled $1,062,635, or 24.4% of the budget amount of $4.4 million. It is important to note that the Highway Fund budget includes the planned use of $1.4 million in reserves, as all construction sales tax revenues are now fully accounted for in the General Fund. In the Bed Tax Fund (see attachment C), revenues collected through October totaled $246,506, or 26.0% of the budget amount of $949,000. Year-to-date expenditures through October totaled $328,656, or 34.2% of the budget amount of $961,000. BACKGROUND OR DETAILED INFORMATION: GENERAL FUND Attachment A shows General Fund revenues and expenditures through October, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows: Revenues $32,425,324 Less: Expenditures ($32,305,219) Est. Increase in Fund Balance $ 120,105 General Fund Revenues Local sales tax collections in the General Fund total $4.8 million or 30.4% of the budget amount of $15.7 million. Sales tax collections in the General Fund are estimated to come in on budget at this time. Please see Attachment E for a monthly tracking of General Fund local sales tax collections, including construction and utility sales tax. Federal Grant revenues are estimated to come in over budget by about $83,000 or 13.9%, due to grant funds received for a Police DUI Tahoe and hosting of collision investigation training classes, funded by the Governor's Office of Highway Safety. Charges for Services revenues are estimated to come in over budget by about $82,000 or 4.9%, due primarily to revenue trends at the Aquatic Center and zoning & subdivision fees. Fine revenues are estimated to come in under budget by about $16,000 or 8.9%, based on current trends and citation filings. Staff will continue to monitor revenue collections and may adjust the year-end estimates based on actual trends. General Fund Expenditures Expenditures are estimated to come in under budget by nearly $152,000 or 0.5%, due to projected vacancy savings. Note that these savings are estimates and are subject to change. HIGHWAY FUND Highway Fund Revenues State shared highway user funds total $917,180, or 33.3% of the budget amount of $2.8 million and are estimated to come in on budget at this time. Highway Fund Expenditures Expenditures are estimated to come in under budget by about $6,000 or 0.1%, due to projected vacancy savings. Note that these savings are estimates and are subject to change. BED TAX FUND Bed Tax Revenues Bed tax revenues total $245,091, or 25.9% of the budget amount of $945,000 and are estimated to come in on budget at this time. Bed Tax Fund Expenditures Expenditures are estimated to come in on budget at this time. Please see Attachments A, B, and C for additional details on the General Fund, Highway Fund and Bed Tax Fund respectively. See Attachment D for a fiscal year-to-date consolidated summary of all Town funds. In addition, as noted earlier, Attachment E includes a breakdown of monthly local sales tax collections for the General Fund. FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for information only. Attachments Attachment A - General Fund Attachment B - HW Fund Attachment C - Bed Tax Fund Attachment D - Summary All Funds Attachment E - GF Local Sales Tax ATTACHMENT A October YTD Financial Status General Fund % Budget Completion through October --- 33.3% % Actuals YE % Variance to Budget to Budget REVENUES: LOCAL SALES TAX 4,768,833 15,676,905 30.4% 15,676,905 0.0% LICENSES & PERMITS 478,123 1,805,547 26.5% 1,805,547 0.0% FEDERAL GRANTS 304,717 597,365 51.0% 680,272 13.9% STATE GRANTS 306,605 1,607,300 19.1% 1,607,300 0.0% STATE/COUNTY SHARED 3,326,234 10,303,762 32.3% 10,303,762 0.0% OTHER INTERGOVERNMENTAL - 15,000 0.0% 15,000 0.0% CHARGES FOR SERVICES 630,173 1,688,995 37.3% 1,771,448 4.9% FINES 47,009 180,000 26.1% 163,965 -8.9% INTEREST INCOME 26,856 81,125 33.1% 81,125 0.0% MISCELLANEOUS 38,248 135,000 28.3% 135,000 0.0% TRANSFERS IN - 185,000 0.0%185,000 0.0% TOTAL REVENUES 9,926,796 32,275,999 30.8% 32,425,324 0.5% % Actuals YE % Variance to Budget to Budget EXPENDITURES: COUNCIL 94,506 207,022 45.7% 207,022 0.0% CLERK 114,132 497,102 23.0% 497,102 0.0% MANAGER 210,567 721,724 29.2% 721,724 0.0% HUMAN RESOURCES 103,699 371,998 27.9% 371,998 0.0% FINANCE 225,266 748,060 30.1% 747,617 -0.1% INFORMATION TECHNOLOGY 505,165 1,432,374 35.3% 1,432,374 0.0% GENERAL ADMINISTRATION 520,874 1,867,600 27.9% 1,867,600 0.0% LEGAL 197,497 756,855 26.1% 756,855 0.0% COURT 241,043 789,826 30.5% 789,826 0.0% DEV & INFRASTRUCTURE SVCS 1,260,626 4,564,803 27.6% 4,413,700 -3.3% PARKS & RECREATION 845,012 2,722,617 31.0% 2,722,617 0.0% POLICE 4,477,986 14,885,819 30.1% 14,885,819 0.0% TRANSFERS OUT 1,044,298 2,890,965 36.1%2,890,965 0.0% TOTAL EXPENDITURES 9,840,670 32,456,765 30.3% 32,305,219 -0.5% SURPLUS / (DEFICIT) 86,127 (180,766) 120,105 BEGINNING FUND BALANCE **11,534,023 Plus: Surplus / (Deficit)120,105 ENDING FUND BALANCE **11,654,127 * Year-end estimates are subject to further revision ** Beginning and ending fund balance amounts are estimates and are subject to further revision FY 2014/2015 Year End Estimate * Budget Year End Estimate * Actuals thru 10/2014 Actuals thru 10/2014 Budget F:\BUDGET ANALYST\Financial Reports 2014-2015\2Q\Oct\Oct FY15 Monthly Report 12/05/2014 ATTACHMENT B October YTD Financial Status FY 2014/2015 % Budget Completion through October --- 33.3% Actuals thru 10/2014 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES: LICENSES & PERMITS 19,947 52,000 38.4% 52,000 0.0% STATE/COUNTY SHARED 917,180 2,754,947 33.3% 2,754,947 0.0% CHARGES FOR SERVICES 43,164 129,493 33.3% 129,493 0.0% INTEREST INCOME 7,031 19,250 36.5% 19,250 0.0% MISCELLANEOUS 2,926 10,000 29.3%10,000 0.0% TOTAL REVENUES 990,248 2,965,690 33.4% 2,965,690 0.0% Actuals thru 10/2014 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: ADMINISTRATION 170,425 610,478 27.9% 610,478 0.0% TRANSPORTATION ENGINEERING 155,355 537,275 28.9% 537,275 0.0% PAVEMENT MANAGEMENT 212,796 1,219,002 17.5% 1,219,002 0.0% STREET MAINTENANCE 383,816 1,053,631 36.4% 1,047,748 -0.6% TRAFFIC ENGINEERING 140,242 934,276 15.0%934,276 0.0% TOTAL EXPENDITURES 1,062,635 4,354,662 24.4% 4,348,779 -0.1% SURPLUS / (DEFICIT) (72,387) (1,388,972) (1,383,089) BEGINNING FUND BALANCE **4,175,161 Plus: Surplus / (Deficit) (1,383,089) ENDING FUND BALANCE **2,792,072 * Year-end estimates are subject to further revision ** Beginning and ending fund balance amounts are estimates and are subject to further revision Highway Fund F:\BUDGET ANALYST\Financial Reports 2014-2015\2Q\Oct\Oct FY15 Monthly Report 12/05/2014 ATTACHMENT C October YTD Financial Status % Budget Completion through October --- 33.3% % Actuals YE % Variance to Budget to Budget REVENUES: BED TAXES 245,091 944,571 25.9% 944,571 0.0% INTEREST INCOME 1,415 4,125 34.3%4,125 0.0% TOTAL REVENUES 246,506 948,696 26.0% 948,696 0.0% % Actuals YE % Variance to Budget to Budget EXPENDITURES: ECONOMIC DEVELOPMENT 161,113 608,457 26.5% 608,457 0.0% TRANSFERS OUT 167,543 352,543 47.5%352,543 0.0% TOTAL EXPENDITURES 328,656 961,000 34.2% 961,000 0.0% SURPLUS / (DEFICIT) (82,151) (12,304) (12,304) BEGINNING FUND BALANCE **425,099 Plus: Surplus / (Deficit) (12,304) ENDING FUND BALANCE **412,795 * Year-end estimates are subject to further revision ** Beginning and ending fund balance amounts are estimates and are subject to further revision FY 2014/2015 Year End Estimate * Budget Year End Estimate * Bed Tax Fund Budget Actuals thru 10/2014 Actuals thru 10/2014 F:\BUDGET ANALYST\Financial Reports 2014-2015\2Q\Oct\Oct FY15 Monthly Report 12/05/2014 ATTACHMENT D Co n s o l i d a t e d Y e a r - t o - D a t e F i n a n c ia l R e p o r t t h r o u g h O c t o b e r , 2 0 1 4 FY 2014/2015 FY 1 4 / 1 5 C a p i t a l L e a s e s / Left in Accounts Be g i n B a l . T r a n s f e r O u t Thru Oct 2014 Ge n e r a l F u n d - U n a s s i g n e d 9 , 9 2 5 , 9 8 8 9 , 9 2 6 , 7 9 6 - 9 , 9 2 6 , 7 9 6 1 , 0 4 6 , 9 8 2 6 , 4 8 2 , 5 8 7 2 , 2 4 6 , 8 5 0 6 4 , 2 5 0 - - 9,840,670 10,012,114 Ge n e r a l F u n d - A s s i g n e d 1 , 6 0 8 , 0 3 5 1,608,035 Hi g h w a y F u n d - R e s t r i c t e d 4 , 1 7 5 , 1 6 1 9 9 0 , 2 4 8 - 9 9 0 , 2 4 8 - 5 5 6 , 9 6 4 1 8 2 , 1 4 9 3 2 3 , 5 2 2 - - 1,062,635 4,102,774 Se i z u r e & F o r f e i t u r e - S t a t e 5 2 6 , 9 0 1 2 , 5 8 3 - 2 , 5 8 3 - - 4 2 , 2 2 5 2 0 , 1 5 7 - - 62,382 467,102 Se i z u r e & F o r f e i t u r e - J u s t i c e 3 4 9 , 7 2 4 1 8 4 - 1 8 4 - 3 5 , 4 7 1 5 , 6 1 2 3 , 4 6 5 - - 44,547 305,361 Be d T a x F u n d - C o m m i t t e d 4 2 5 , 0 9 9 2 4 6 , 5 0 6 - 2 4 6 , 5 0 6 1 6 7 , 5 4 3 7 2 , 5 4 8 8 8 , 5 6 5 - - - 328,656 342,948 Im p o u n d F e e F u n d 7 , 3 4 6 1 0 , 6 5 0 - 1 0 , 6 5 0 - 8 , 1 5 6 - - - - 8,156 9,840 Mu n i c i p a l D e b t S e r v i c e F u n d 5 3 3 , 9 2 8 5 9 , 2 9 6 3 2 9 , 6 2 7 3 8 8 , 9 2 3 - - 5 , 5 5 3 - - 667,200 672,752 250,098 Or a c l e R o a d D e b t S e r v i c e F u n d 2 8 1 - 2 , 0 0 0 2 , 0 0 0 - - 6 9 5 - - - 695 1,586 Al t e r n a t i v e W a t e r R e s o u r c e s D e v I m p a c t F e e F u n d 3 , 3 3 6 , 0 9 9 4 3 0 , 6 7 4 - 4 3 0 , 6 7 4 - - 3 9 , 1 2 7 6 7 , 4 1 6 - - 106,543 3,660,230 Po t a b l e W a t e r S y s t e m D e v I m p a c t F e e F u n d 4 , 5 0 5 , 6 3 5 2 2 2 , 6 6 0 - 2 2 2 , 6 6 0 - - - - - - - 4,728,295 To w n w i d e R o a d w a y D e v e l o p m e n t I m p a c t F e e F u n d 2 , 7 9 1 , 1 6 6 1 7 0 , 6 8 0 - 1 7 0 , 6 8 0 - - - 1 0 7 , 0 2 9 - - 107,029 2,854,817 Pa r k s & R e c r e a t i o n I m p a c t F e e F u n d 2 1 , 5 5 5 4 3 , 7 8 3 - 4 3 , 7 8 3 - - - - - - - 65,338 Li b r a r y I m p a c t F e e F u n d 1 1 4 , 7 9 8 - - - - - - - - - - 114,798 Po l i c e I m p a c t F e e F u n d 2 0 5 , 9 3 6 1 7 , 0 7 7 - 1 7 , 0 7 7 - - - - - - - 223,012 Ge n e r a l G o v e r n m e n t I m p a c t F e e F u n d 3 , 5 0 2 1 - 1 - - - - - - - 3,503 Na r a n j a P a r k F u n d 7 3 7 , 0 5 6 - - - - - - 2 1 6 , 6 1 4 - - 216,614 520,442 Ge n e r a l G o v e r n m e n t C I P F u n d 1 , 5 0 0 , 0 0 0 - 8 8 3 , 3 3 3 8 8 3 , 3 3 3 - - - 1 9 3 , 4 2 5 - - 193,425 2,189,908 W a t e r U t i l i t y 1 1 , 8 2 3 , 3 4 2 5 , 0 7 8 , 4 0 8 - 5 , 0 7 8 , 4 0 8 3 , 1 1 9 8 6 5 , 6 5 2 1 , 8 4 6 , 4 6 6 9 7 4 , 7 6 2 - 3,689,999 13,211,751 St o r m w a t e r U t i l i t y 5 0 3 , 4 7 4 1 9 2 , 9 0 5 - 1 9 2 , 9 0 5 1 , 9 1 9 1 0 2 , 3 5 9 1 2 4 , 5 4 7 1 1 , 7 6 6 - - 240,590 455,788 Fl e e t F u n d 8 4 , 9 4 9 3 5 0 , 8 3 2 - 3 5 0 , 8 3 2 - 2 4 , 5 4 3 2 2 9 , 6 2 1 3 1 , 9 9 5 - - 286,159 149,622 Be n e f i t S e l f I n s u r a n c e F u n d 5 8 4 , 5 0 9 7 2 9 , 2 4 5 - 7 2 9 , 2 4 5 - - 9 1 4 , 1 2 5 - - - 914,125 399,629 Re c r e a t i o n I n - L i e u F e e F u n d 6 , 1 9 0 - - - - - - - - - - 6,190 To t a l 4 3 , 7 7 0 , 6 7 3 1 8 , 4 7 2 , 5 2 8 1 , 2 1 4 , 9 6 0 1 9 , 6 8 7 , 4 8 8 1 , 2 1 9 , 5 6 3 8 , 1 4 8 , 2 8 0 5 , 7 2 5 , 5 3 5 2 , 0 1 4 , 4 0 0 - 667,200 17,774,978 45,683,184 Fu n d R e v e n u e Ot h e r F i n So u r c e s / T f r s To t a l I n Debt Service T o t a l O u t Pe r s o n n e l O & M C a p i t a l C o n t i n g e n c y F: \ B U D G E T A N A L Y S T \ F i n a n c i a l R e p o r t s 2 0 1 4 - 2 0 1 5 \ 2 Q \ O c t \ O c t S u m m a r y A l l F u n d s 12/05/2014 ATTACHMENT E Ge n e r a l F u n d L o c a l S a l e s T a x C o l l e c t i o n s FY 2014/201 5 CA T E G O R Y J U L Y A UG S E P O C T N O V D E C J A N F E B M A R A PR M A Y J U N E T O T A L Co n s t r u c t i o n S a l e s T a x 35 3 , 2 5 7 3 6 5 , 8 7 7 3 4 3 , 0 7 1 3 1 7 , 5 9 5 1,379,800 Ut i l i t y S a l e s T a x 26 9 , 7 7 2 2 9 9 , 1 5 4 2 9 2 , 4 5 6 2 6 1 , 3 3 3 1,122,715 Al l O t h e r L o c a l S a l e s T a x * 62 4 , 0 2 0 4 1 5 , 6 6 5 3 8 4 , 8 2 2 8 4 1 , 0 1 1 2,265,518 TO T A L 1 , 2 4 7 , 0 4 9 $ 1 , 0 8 0 , 6 9 6 $ 1 , 0 2 0 , 3 4 9 $ 1 , 4 1 9 , 9 3 9 $ 4,768,033 $ * N o t e : D o e s n o t i n c l u d e c a b l e f r a n c hi s e f e e s o r s a l e s t a x a u d i t r e v e n u e s F: \ B U D G E T A N A L Y S T \ F i n a n c i a l R e p o r t s 2 0 1 4 - 2 0 1 5 \ 2 Q \ O c t \ A t t a c h m e n t E - G F L o c a l S a l e s T a x 12/05/2014 Town Council Regular Session Item # C. Meeting Date:12/17/2014 Requested by: Stacey Lemos Submitted By:Stacey Lemos, Finance Department:Finance Information SUBJECT: Resolution No. (R)14-65, approving a Facility Lease Agreement between the Town of Oro Valley and the Friends of the Oro Valley Public Library RECOMMENDATION: The Friends of the Oro Valley Public Library Board approved this lease agreement at their November 13, 2014, board meeting, and staff recommends approval. EXECUTIVE SUMMARY: Staff requests Town Council approval of the Facility Lease Agreement between the Town and the Friends of the Oro Valley Public Library for 408 square feet of space located within the recently placed triple-wide modular building on the Town Hall Campus just south of the Library. Town Council authorized the purchase of this modular building at their July 2, 2014, regular Council meeting to address space needs requested by the Friends of the Oro Valley Public Library, several Town departments (Development and Infrastructure Services and Water Utility) and space needed to operate the Town's on-site health clinic. The Friends will use this leased space primarily for book storage in support of their fundraising efforts for the Oro Valley Public Library. BACKGROUND OR DETAILED INFORMATION: Earlier this year, the Friends of the Oro Valley Public Library approached Town staff requesting additional book storage space, preferably located in close proximity to the Library. Staff considered this request in conjunction with other Town space needs in the Development and Infrastructure Services (DIS) and Water Utility departments, as well as the need for space to operate the on-site health clinic that is expected to open in early January 2015. As a result, the Town Council authorized the purchase of a refurbished triple-wide modular building to address these needs at the July 2, 2014, regular Town Council meeting. This modular building is located on the Town Hall campus just south of the Oro Valley Library and north of the Development and Infrastructure Services Building. The proposed lease agreement has been negotiated between the Town and the Friends to lease 408 square feet of space to the Friends. The initial term of this lease shall commence on January 5, 2015, and shall be for a period of six (6) years with the option to renew for three (3) additional terms of five (5) years each for a total of 21 years. The lease cost for the initial 6-year term is $25,200 payable in annual installments of $4,200 and increases to $4,500, $4,700 and $5,000 annually in renewal periods 1, 2 and 3 respectively. This is a mutually beneficial lease that will allow the Friends to have convenient book storage space in close proximity to the Library, and the Town receives a competitive lease rate that will help offset a portion of the modular building costs over time. FISCAL IMPACT: The Friends will pay annual lease payments to the Town of $4,200 for the first six years of the lease term totaling $25,200. These annual lease payments increase to $4,500, $4,700 and $5,000 annually in renewal periods 1,2 and 3 respectively. SUGGESTED MOTION: I MOVE to approve Resolution No. (R)14-65, approving a Facility Lease Agreement between the Town of Oro Valley and the Friends of the Oro Valley Public Library. or I MOVE... Attachments (R)14-65 Friends of OV Library Lease Agreement Lease Agreement RESOLUTION NO. (R)14-65 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING THE LEASE AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND THE FRIENDS OF THE ORO VALLEY PUBLIC LIBRARY FOR THE 408 SQUARE FEET OF SPACE WITHIN THE TRIPLE WIDE MODULAR BUILDING LOCATED TO THE SOUTH OF THE ORO VALLEY PUBLIC LIBRARY AND NORTH OF THE DEVELOPMENT INFRASTRUTURE SERVICES BUILDING WHEREAS, the Town desires to lease space to the Friends of Oro Valley Public Library; and WHEREAS, the available space is approximately 408 square feet of a triple wide modular building located to the south of Oro Valley Public Library and north of the Development Infrastructure Services building; and WHEREAS, Friends desire to use the modular space for storage and related purposes integral to the business operations and purposes of Friends; and WHEREAS, it is in the best interest of the Town to enter into the Lease Agreement, attached hereto as Exhibit “A” and incorporated herein by this reference, with the Friends of the Public Library to lease the space of approximately 408 square feet of a triple wide modular building located to the south of the Oro Valley Public Library and north of the Development Infrastructure Services building. NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Council of the Town of Oro Valley, that: 1. The Lease Agreement, attached hereto as Exhibit “A” and incorporated herein by this reference, between the Town of Oro Valley and the Friends of the Oro Valley Public Library is hereby approved. 2. That the Mayor and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Lease Agreement. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 17 th day of December, 2014. TOWN OF ORO VALLEY _______________________________ Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Julie K. Bower, Town Clerk Tobin Sidles, Legal Services Director ____________________________________________________________ Date Date EXHIBIT “A” TOWN OF ORO VALLEY FACILITY LEASE AGREEMENT BETWEEN THE TOWN OF ORO VALLEY ("TOWN") AND THE FRIENDS OF THE ORO VALLEY PUBLIC LIBRARY ("FRIENDS") This Facility Lease Agreement ("Lease Agreement") is entered into this _ day of ____ _ 20_ by and between the Town of Oro Va ll ey ("Town") and Friends of the Oro Valley Public library, Inc., a SOl(c)3 non-profit corporat ion incorporated in Arizona ("Friends"). RECITALS WHEREAS, the Town desires to le ase space totaling approximately 408 square feet to the Friends in the triple-wide modular building located at 11000 N. La Canada Drive, south ofthe Oro Valley Public library and north ofthe Development Services Building; and WHEREAS, Friends desires to use the modular space for storage and related purposes integral to the business operations and purposes of Friends; and WHEREAS, Friends provides a va lu able service to the Town of Oro Valley by supporting the l ocal library. NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. DESCRIPTION OF PROPERTY AND TERM (a) The Town hereby leases to Friends approximately 408 square feet of space within the triple- wide modular building lo cated on the Town Hall campus at 11000 N. La Canada Drive, south ofthe Oro Val ley Public library and north ofthe Development Services Building. This leased space is accessed by exterior double doors located in the back (east-facing) sid e of the building. The floor plan of the modular building showing the leased space for the Friends is attached hereto as "Exhibit A" and made a part of this lease. (b) The in iti al term of this lease shall commence on January S, 2015 and shall be for a period of six (6) years. (c) Friends shall have the option to renew this lease for three (3) additional terms of five (5) years each following expiration of the Initial Term. The terms and conditions of this Lease Agreement shall remain in effect during any subsequent renewal terms, except that the applicable rent sha ll be as set forth in Paragraph 3(b) belo w. Friends shall notify the Town no lat er than thirty (30) days prior to the expiration of each term whether Friend s intends to exerc ise its option to renew . In the absence of suc h notificat ion, thi s Lea se Agreement shall terminate at the end of the then current term. 2. DELIVERY OF POSSESSION The Town sha ll deliver the leased spa ce to the Fr iends in sound operating condition upon mutual execution of this Lease and Town's receipt ofthe rent for the initial term and ce rtificate of insur ance. 3 . RENTAL PAYMENTS (a) Initial Term -Rent for the initial 6-year term shall be a total of $25,200 payable in annual in stallments of $4,200. The first installment shall be due and payable on or before January 5, 2015. (b) Renewal Terms -If Friends elects to exercise the option to renew as provided in Paragraph l(c), rent during the renewal term sha ll be in accordance with the following payment sc hedule: Renewal Option 60-Month Period 1 1/5/2021 -1/4/2026 2 1/5/2026-1/4/2031 3 1/5/2031-1/4/2036 Lump 5um Rent $22,500 $23,500 $25,000 Annual Rent $4,500 $4,7 00 $5,000 (c) Invoices and Late Charges -Subsequent to the initi al rent payment , the Town w ill prepare and submit to Friends an invoice for the n ex t year's rent on or before December 15 of each year during the initial term and any renewa l term . The annua l rent payment for th e ensuing year shall be due on or before twenty (20) ca len dar days from receipt of the Tow n's invoice or January 5, w hiche ve r is later. The Town shall ha ve the option to charge a late fee equal t o 10% of the amount due in th e eve nt an annua l rent payment is not received wit hin ten (10) ca l endar days of its due date. 2 4. USE OF PREMISES (a) Friend s agrees to us e the premises so lely for the purposes stated in the Recitals hereto. Further, Friends agrees not to use or permit the use of the premises or any part thereof for any purpose prohibited by law . The Friends shall not sublet the premises or any portion thereof to another party during the initial term of the lease or during any of the subsequent renewal terms. (b) No goods, merchandise, or materials shall be kept, stored, or sold by Friends on the premises that are in any way hazardou s. (c) Friends shall not reconstruct or remodel the premises or install any fixtures therein without the prior written approval of the Town. (d) The Town shall have the right at any reasonable time to alter, repair, or improve the premises and the building of which the premises area a part ; and the Town and its representatives for that purpose may enter on and about the premises and the building of which the leased premises are a part for the purpose of making such alterations, repairs or improvements, provided that prior notice is given to Friends and such entry does not interfere with the conduct of Friend's bUSiness. (e) At the end ofthe term ofthis Lease Agreement, Friends shall surrender and deliver up the premises in the same condition (subject to any additions, alterations or improvements, if any) as delivered, reasonable wear and tear excl uded. 5. INDEMNIFICATION (a) Friends and its successors and assigns, hereby indemnifies, defends , and hold s harmless the To w n of Oro Valley, its agents, representatives, officers, directors, offiCials and employees from and against all claims, damages, losses, expenses (including but not limited to attorney fees, co urt costs, and the costs of appellate proceedings), relating to, arising out of, or alleged to have resulted from the negligent acts, errors, mistakes, omissions in the work or services of Friends and their invitees, successo rs or assigns. Further, the Town shall not be responsible for any damage s incurred as a result of Friends' use of the leased modular building space. Friends accepts full responsib ility for any and all items stored within the lea sed modular building space . 3 (b) The Town hereby indemnifies, defends and holds harmless Friends and its successors and assigns and their respective officers, directors, employees, agents and representatives, volunteers, and invitees from and against all claims, damages, losses, expenses (including, but not limited to, attorney fees, court costs, and the costs of appellate proceedings), relating to, arising out of, or alleged to have resulted from the negligent acts, errors, mistakes, omissions in the work or services of the Town or any of its employees, agents, representatives, contractors, and invitees. Further, Friends shall not be responsible for any damages incurred as a result of the Town's use of the leased modular space or the surrounding environs. The Town accepts full responsibility for any damage, injury, loss, cost and expense associated with use of the building and surrounding environs, except to the extent such damage, etc. is caused by Friends or its employees, volunteers, or agents. 6. ASSIGNMENT This Contract shall not be assignable except at the written consent of the Parties, and it shall extend to and be binding upon the heirs, executors, administrators, successors and assigns ofthe Parties. 7. INSURANCE Friends, at its sole expense, shall procure and maintain in full force and effect the required insurance coverage deemed necessary by the Town. Please refer to Exhibit "8" below for required insurance coverage specifications. 8. DEFAULT/TERMINATION (a) Termination for Default The Town reserves the right to terminate this Lease Agreement due to the failure of the Friends to carry out any term or condition of the lease. The Town will issue a written notice of default to the Friends for failing to perform the stipulations or conditions required. The Friends shall have ten (10) days from receipt of notice to rectify the default. (b) Termination for Convenience This Lease Agreement may be terminated at any time by either party upon giving thirty (30) days written notice to the other party ("termination for convenience"). Upon a termination 4 for co nve ni e nce , the Town shall re imburse Fri end s for the prorated portion of rent paid for periods after the effective date of termination , subject to sa tisfa ct ion of all other terms and cond ition s co ntained h ere in . 9. ENFORCEMENT OF LAWS This Lease Agreement sha ll be construed in accordance with and enforced under the laws of the State of Arizona. Each party mu st comp ly with all applicable federal , state, county and Town laws, ordinances and regulation s. 10. ENTIRE AGREEMENT This Lease Agreement contains the entire contract between the parties and it may not be modified amended, altered or extended excep t through a written amendment si gned by all parties . 11. NOTICES All notices given pursuant to this Lease Agreement sha ll be given by perso nal delivery or by first cla ss pre-paid mail to the following persons or any other persons a party may designate in writing: To the Town of Oro Va ll ey Town of Oro Valley AnN: Finan ce Director 11000 N. La Canada Dr. Oro Valley, AZ 85737 To the Friends Friends of th e Oro Valley Public Library, In c. AnN: Pre sident P.O. Box 69218 Oro Va lley , AZ 85737 IN WITNESS HEREOF , the parties hereto h ave ca used this Agreement to be executed as of the first date appearing above. 5 ORO VAllEY Date: \ \ \"2.-3 ) \ Lf (b.~ /!vt:~ Jan Mtefson Vice-President Date : _~/~! IL:.J~-3 -1-/~/Lf ___ _ r ) 6 TOWN OF ORO VAllEY Dr. Satish I, Hiremath Mayor Date: ____________________ __ APPROVED AS TO FORM Tobin Sidles legal Se rvice s Director Date: ___________________ _ Exhibit "A" n '-4" 11'·6-1---".'0'- -"-~. r Friends of the 3'·Y Library IO";!" 408sf '- r- u . > N/ - V • VV . . .... 7 Exhibit "B" INSURANCE Friends agrees to obtain insurance coverage of the types and amounts required consistent with the coverage limits shown below. Coverage Afforded Commercial General Liability Insurance (including blanket contractual and premises/operations) Limits of Liability $1,000,000 -Bodily Injury Combined Single Limit $100,000 Property Damage Friends shall provide satisfactory certificates on the required insurance coverage before the effective date of the agreement. The policy shall contain an endorsement providing that written notice be given to the Town at least thirty (30) calendar days prior to termination, cancellation or reduction in coverage policy. Insurance policies shall remain in force as long as the Friends are occupying the space. If a policy does expire during the life of the agreement, a renewal certificate of the required coverage must be sent to the Town of Oro Valley not less than five (5) business days prior to expiration date. The Town of Oro Valley shall be included as an additional insured on all policies. Policies for Excess Liability are primary over any insurance available to the Town and as to any claims resulting from the Contract, it being the intention of the parties that the insurance policies so effected shall protect both parties and be primary coverage for any and all losses covered by the described insurance. In regard to General and Excess Liability, the Friends agree to indemnify, defend and save harmless the Town of Oro Valley, its Mayor and Council, appointed boards and commissions, offiCials, officers and employees individually and collectively from all losses , claims, suits, actions, payments and judgments, demands, expenses , attorney's fees, defense costs or actions of any kind and nature resulting from personal injury to any person, including employees of the Lessee (including bodily injury and death) or damages to any property, arising or alleged to have arisen out of the negligent acts of the Friends, except any injury or damages arising out of the sole negligence of the Town, its officers, agents or employees. The amount and type of insurance coverage requirements set forth in the Contract will in no way be construed as limiting the scope of indemnity in this paragraph. 8 Town Council Regular Session Item # 1. Meeting Date:12/17/2014 Requested by: Kristy Diaz-Trahan Submitted By:Kristy Diaz-Trahan, Parks and Recreation Department:Parks and Recreation Information SUBJECT: RESOLUTION NO. (R)14-66, APPROVING THE ACQUISITION OF THE EL CONQUISTADOR COUNTRY CLUB, GOLF, AND TENNIS FACILITIES AND AUTHORIZING THE TOWN MANAGER TO TAKE THE NECESSARY ACTIONS TO COMPLETE THE ACQUISITION RECOMMENDATION: Staff recommends approval to acquire the El Conquistador Country Club, Golf, and Tennis facilities located at 10555 N. La Canada Blvd., and the Golf and Tennis facilities located at 10000 N. Oracle Rd. EXECUTIVE SUMMARY: Staff requests Town Council approval to purchase the El Conquistador Country Club, Golf, and Tennis facilities as noted below: 31,475 sq. ft. building (La Canada location) 5,600 sq. ft. building (Oracle location) 324 acres of land 31 lighted tennis courts (15 at La Canada and 16 at Oracle locations) 2 heated pools (La Canada location) The purchase will include a management contract with Troon, who will manage golf and food & beverage operations. The Country Club will transition into Oro Valley's first ever Community & Recreation Center, which the Town of Oro Valley Parks & Recreation Department will manage, along with the related tennis courts. BACKGROUND OR DETAILED INFORMATION: The Hilton El Conquistador Golf & Tennis resort, currently owned by Met Life, Inc., is scheduled to be purchased by HSL Properties, Inc. on December 18, 2014. HSL Properties is interested in selling the Country Club, Golf, and Tennis facilities to the Town of Oro Valley for $1,000,000. The facilities include the following: 10555 N. La Canada Location 31,475 sq. ft. building Meeting rooms and classrooms Racquetball and multi-use courts Dance/fitness room Cardio and strength equipment Children’s activity room Golf pro shop Full service restaurant, bar, and kitchen Small café 15 lighted tennis courts 2 swimming pools 2 18-hole golf courses 10000 N. Oracle Location 5,600 sq. ft. building Golf and tennis pro shop Small food service area Storage facilities 16 lighted tennis courts 1 9-hole golf course These recreational amenities align with the Parks & Recreation Department’s mission “To enhance the quality of life for all Oro Valley residents by providing exceptional community facilities and programs for all ages." The programming and management intent is to (1) Transition the Country Club into the Town’s first Community & Recreation Center, which will include tennis programming; (2) Retain the golf management contract (Troon) that is included in the sale to manage golf and food & beverage operations. FISCAL IMPACT: The proposed acquisition cost for these facilities is $1 million to be paid in cash over the next three fiscal years as follows: $300,000 in July of 2015, $350,000 in July of 2016 and $350,000 in July of 2017. It is anticipated that these funds would come primarily from the Town's General Fund and a small portion from the Bed Tax Fund. Based on financial projections prepared for both the Community and Recreation Center operations and the golf and food and beverage operations, it is estimated that the facility operations will result in an estimated operating deficit of approximately $1.2 million in the first year; however, it is anticipated that this deficit lowers each year and turns positive by FY 2018/19 as a result of increased capital investment, marketing of the facility and programs, and quality management. Capital investment needs at the facility total about $5.5 million over the next five fiscal years and address accessibility and life safety improvements, replacement of aging equipment, and golf course upgrades. To fund these needs, a 0.5% transaction privilege tax (TPT) increase is being proposed, raising our current TPT tax rate from 2% to 2.5% to generate approximately $2.0 million annually in additional revenues to be dedicated to funding the operating subsidy and capital costs of this facility over time. Should this property be acquired by the Town, it is estimated that operations of the entire facility would be turned over to the Town from HSL Properties during the first quarter of the 2015 calendar year. In order to accommodate accounting for these new operations into the Town's adopted budget for FY 2014/15, staff anticipates bringing a budget amendment request to the Town Council in early 2015 to amend the budget and allocate funding for the operating costs and any immediate capital needs of this facility through the remainder of the current fiscal year. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)14-66, approving the acquisition of the El Conquistador Country Club, Golf, and Tennis facilities as presented. Attachments (R)14-66 Acquisition of the El Conquistador RESOLUTION NO. (R)14-66 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING THE ACQUISITION OF THE EL CONQUISTADOR COUNTRY CLUB, GOLF AND TENNIS FACILITIES WHEREAS, the Town is interested in purchasing the El Conquistador Country Club, Golf and Tennis currently owned by MET Life, Inc., with anticipated ownership being transferred to HSL Properties; and WHEREAS, the Town is interested in converting the El Conquistador Country Club, Golf and Tennis facilities into a community center for Oro Valley residents and visitors; and WHEREAS, upon the transfer of ownership to HSL Properties, HSL will be interested in selling the El Conquistador Country Club, Golf and Tennis facilities to the Town for $1 million; and WHEREAS,the El Conquistador Country Club, Golf and Tennis facilities includes a 31,475 square foot building located at 10555 North La Canada Drive, a 5,600 square foot building located at 10000 North Oracle Road, approximately 324 acres of land, 31 lighted tennis courts, 2 heated pools at the La Canada Location and 45 holes of golf, one of the golf courses being located at 10700 North La Canada Drive; and WHEREAS,it is in the best interest of the Town and its citizens to purchase the El Conquistador Country Club, Golf and Tennis facilities for $1 million to be converted into a community center for residents and visitors; NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: 1.The Town Manager is authorized to take such steps as are necessary to acquire the El Conquistador Country Club, Golf and Tennis facilities located at 10555 North La Canada Drive, the golf course located at 10700 North La Canada Drive and 10000 North Oracle Road. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 17 th day of December, 2014. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: _______________________________________________________________________ Julie K. Bower, Town Clerk Tobin Sidles, Legal Services Director Town Council Regular Session Item # 2. Meeting Date:12/17/2014 Requested by: Stacey Lemos Submitted By:Stacey Lemos, Finance Department:Finance Information SUBJECT: PUBLIC HEARING: ORDINANCE NO. (O)14-17, AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY TO INCREASE THE LOCAL TRANSACTION PRIVILEGE TAX (TPT) RATE FROM 2% TO 2.5% IN VARIOUS CATEGORIES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: At the December 3, 2014, regular Town Council meeting, staff presented an opportunity for the Town to acquire the Hilton El Conquistador Country Club, golf courses and tennis facilities from HSL Properties, the anticipated buyer of the Hilton El Conquistador Resort and Hotel. If purchased, it is expected that the operation of these facilities will generate revenues to cover a portion of the annual operating expenses; however, an additional revenue source is necessary to subsidize the operating costs and fund the capital needs of the facility over time. It is estimated that the facility operations will result in an estimated operating deficit of approximately $1.2 million in the first year; however, it is anticipated that this deficit lowers each year and turns positive by FY 2018/19 as a result of increased capital investment and marketing of the facility, and quality management aimed at improving the user experience. Capital investment needs at the facility total about $5.5 million over the next five fiscal years and address accessibility and life safety improvements at the facility, replacement of aging equipment and golf course upgrades. To fund these needs, staff proposes an additional revenue source in the form of a 0.5% transaction privilege tax (TPT) increase, raising our current TPT tax rate from 2% to 2.5% to generate approximately $2.0 million annually in additional revenues to be dedicated to funding the operating subsidy and capital costs of this facility over time. Should the Town Council approve the ordinance to amend the tax code as presented, the Town is required to provide this information to the Arizona Department of Revenue and the Municipal Tax Code Commission within 10 days. The Arizona Department of Revenue requires an additional 60 days to notify the businesses in Oro Valley and update their monthly tax forms with the new tax rate. Therefore, the effective date of the tax rate increase from 2% to 2.5% would be March 1, 2015. BACKGROUND OR DETAILED INFORMATION: At the December 3, 2014, regular Town Council meeting, staff presented an opportunity for the Town to At the December 3, 2014, regular Town Council meeting, staff presented an opportunity for the Town to acquire the Hilton El Conquistador Country Club and Golf Courses from HSL Properties, the anticipated buyer of the Hilton El Conquistador Resort and Hotel. The Country Club facility provides the following uses: 31 tennis courts, restaurant/café/banquet facilities, a fitness center, 2 swimming pools, and 45 holes of golf. The proposed acquisition cost of the Country Club facility and related golf courses is $1 million to be paid in cash over the next three fiscal years. During the presentation, staff indicated that the Town would work with a management company, Troon Golf, to manage the golf courses, a portion of the tennis facilities and the food and beverage operations. Troon would hire their own employees to operate this segment of the operations. HSL Properties, working closely with Town staff, is currently in contract negotiations with Troon for these areas. Should the Town purchase the designated property, the oversight of this management contract would be assigned to the Town of Oro Valley from HSL Properties. In addition, the fitness center space, swimming pools and 15 tennis courts located at the Country Club site on La Canada Drive would be converted into a Town Community and Recreation Center to be managed and operated by Oro Valley Parks and Recreation employees. Estimated revenue and expense projections, along with 5-year capital improvement plans, were prepared for both management scenarios. The table below depicts the estimated revenues, expenses and related operating deficits for the first full year of operations of the facility: Community & Rec Center (Operated by Oro Valley Parks & Recreation) Golf and Food & Beverage Operations (Operated by Troon) Totals Estimated Revenues $ 1,025,000 $ 4,400,000 $ 5,425,000 Estimated Expenses <$ 1,050,000><$ 5,600,000><$ 6,650,000> Estimated Loss <$ 25,000><$ 1,200,000> <$ 1,225,000> Capital investment needs at the facility total approximately $5.5 million over the next five (5) years and address accessibility and life saving improvements, replacement of aging equipment and golf course upgrades. Critical to the purchase of the facilities is the approval of a dedicated additional revenue source to fund the operating subsidy and the capital needs of the facility over time. To fund these needs, a 0.5% increase to the Town's current TPT tax rate of 2% is proposed. It is estimated that this TPT rate increase will generate approximately $2.0 million annually. These revenues could also be used to pay bond debt service should the Town desire to issue debt in order to complete some of the capital projects on an accelerated pace. FISCAL IMPACT: Approval of Ordinance No. (O)14-17, increasing the TPT tax rate from 2% to 2.5% would generate approximately $2.0 million in additional revenues annually. These revenues would be specifically dedicated to funding the operating subsidy and capital needs of the Community and Recreation Center and golf and tennis facilities. It is assumed that this additional revenue would be generated by both Town residents and non-residents who shop within the Town. Based on the estimate that approximately 2/3 of our local tax revenues are generated by Town residents, it is estimated that approximately $1.3 million of the total increase would be paid by Town residents. This additional tax equates to approximately $2.60 per person, per month based on the Town's estimated population of 42,000 residents. SUGGESTED MOTION: I MOVE to approve Ordinance No. (O)14-17, amending the Tax Code of the Town of Oro Valley to increase the local transaction privilege tax (TPT) rate from 2% to 2.5% in the various categories outlined in the Ordinance in Exhibit "A". or I MOVE... Attachments O14-17 Amending Tax Code - Increase TPT C:\WINDOWS\TEMP\BCL Technologies\easyPDF 6\@BCL@741061FF\@BCL@741061FF.doc Town of Oro Valley Attorney’s Office/ca/061611 ORDINANCE NO. (O)14-17 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY TO INCREASE THE LOCAL TRANSACTION PRIVILEGE TAX (TPT) RATE FROM 2% TO 2.5% IN VARIOUS CATEGORIES AND REPEALING ALL RESOLUTIONS, AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER WHEREAS, all Arizona cities and towns have the authority to levy taxes under ARS § 9- 240(B)(26); and WHEREAS, the Town has adopted the Model City Tax Code (“Code”) pursuant to Arizona law and incorporated the model language into the Tax Code of the Town of Oro Valley; and WHEREAS,amendments to the Code are required to be made in accordance with ARS § 42-6054; and WHEREAS, on December 3, 2014, staff presented to Town Council the opportunity to acquire the El Conquistador Country Club, golf and tennis facilities(“facilities”)from HSL Propertiesand turn them into a community center and use the property for municipal purposes; and WHEREAS, if the El Conquistador Country Club, golf and tennis facilities are purchased, it is expected that the operation of these facilities will generate revenues to cover a portion of the annual operating expenses; however, an additional revenue source is necessary to subsidize the operating costs and fund the capital needs of the facility over time; and WHEREAS, to fund the needs of the facilities, the Town proposes an additional revenue source in the form of .50% transaction privilege tax (TPT) increase, raising our current TPT from 2.0% to 2.5% to generate approximately $1.6 - $2.0 million annually in additional revenues; and WHEREAS, it is in the best interest of the Town that Council amend the tax code to increase the local transaction privilege tax (TPT) rate from 2% to 2.5% in various categories with an effective date of March 1, 2015. BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWNOF ORO VALLEY, ARIZONA: SECTION 1.: Sections 8A-405; 410; 425; 427; 430; 435; 444; 450; 455; 460; and 475 of the Tax Code of the Town of Oro Valley, attached hereto as Exhibit A and incorporated by reference, is amended to increase the local transaction privilege tax (TPT) rate from 2% to 2.5%. C:\WINDOWS\TEMP\BCL Technologies\easyPDF 6\@BCL@741061FF\@BCL@741061FF.doc Town of Oro Valley Attorney’s Office/ca/061611 SECTION 2. Council hereby directs that the revenue resulting from this amendment to the Tax Code of the Town of Oro Valley shall be used to meet the needs of the operations of the El Conquistador Country Club, golf and tennis facilities as a community center. SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions, or Motions of the Council in conflict with the provisions of this Ordinance are hereby repealed. SECTION 4. If any section, subsection, sentence, clause, phrase or portionof this ordinance or any part of these amendments to the tax code adopted herein by reference is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. This Ordinance shall not be effective until March 1, 2015, so that the Arizona Department of Revenue will have time to process and implement the terms of this ordinance. PASSED AND ADOPTED by the Mayor and Council of the Townof Oro Valley, Arizona, this 17th day of December, 2014. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Julie K. Bower, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” C:\WINDOWS\TEMP\BCL Technologies\easyPDF 6\@BCL@741061FF\@BCL@741061FF.doc Town of Oro Valley Attorney’s Office/ca/061611 AMENDMENTS TO THE TAX CODE OF THE TOWN OF ORO VALLEY Section 1.Section 8A-4 of the Tax Code of the Town of Oro Valley is amended to read: 8A-405 Advertising a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of local advertising by billboards, direct mail, radio, television, or by any other means. However, commission and fees retained by an advertising agency shall not be includable in gross income from local advertising. All delivery or disseminating of information directly to the public or any portion thereof for a consideration shall be considered local advertising, except the following: … 8A-410 Amusements, Exhibitions, and Similar Activities a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of providing amusement that begins in the Town or takes place entirely within the Town, which includes the following type or nature of businesses: … 8A-425 Job Printing a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of job printing, which includes engraving of printing plates, embossing, copying, micrographics, and photo reproduction. … 8A-427 Manufactured Buildings a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income, including site preparation, moving to the site, and/or set-up, upon every person engaging or continuing in the business activity of selling manufactured buildings within the Town. Such business activity is deemed to occur at the business location of the seller where the purchaser first entered into the … 8A-430 Timbering and Other Extraction a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the following businesses: … C:\WINDOWS\TEMP\BCL Technologies\easyPDF 6\@BCL@741061FF\@BCL@741061FF.doc Town of Oro Valley Attorney’s Office/ca/061611 8A-435 Publishing and Periodicals Distribution a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business activity of: … 8A-444 Hotels The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a hotel charging for lodging and/or lodging space furnished to any: … 8A-450 Rental, Leasing, and Licensing for Use of Tangible Personal Property … a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of leasing, licensing for use, or renting tangible personal property for a consideration, including that which is semi-permanently or permanently installed within the Town as provided by regulation in Article 8A-7. … 8A-455 Restaurants and Bars a. The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of preparing or serving food or beverage in a bar, cocktail lounge, restaurant, or similar establishment where articles of food or drink are prepared or served for consumption on or off the premises, including also the activity of catering. Cover charges and minimum charges must be included in the gross income of this business activity. … 8A-460 Retail Sales: Measure of Tax; Burden of Proof; Exclusions a. The tax rate shall be at an amount equal to two AND A HALF percent (2%) of the gross income from the business activity upon every person engaging or continuing in the business of selling tangible personal property at retail. … 8A-475 Transporting for Hire The tax rate shall be at an amount equal to two AND A HALF percent (2.5%) of the gross income from the business activity upon every person engaging or continuing in the business of providing the following forms of transportation for hire from this Town to another point within the State: Town Council Regular Session Item # 3. Meeting Date:12/17/2014 Submitted By:Julie Bower, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: DISCUSSION AND POSSIBLE ACTION TO INITIATE THE 60-DAY PUBLIC NOTICE PROCESS FOR A FUTURE DISCUSSION REGARDING NEW AND INCREASED RECREATION FEES RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: Pursuant to A.R.S. 9-499.15, the Town must post a public notice on its website at least 60 days prior to the date any proposed new or increased fee or tax is scheduled to be discussed and approved or disapproved at a meeting of the Town Council. The only issue to be discussed at tonight's meeting is whether or not to initiate the 60-day public notice process to allow Council to have a future discussion about new and increased recreation fees. The statute does not allow discussion regarding new and increased recreation fees at tonight’s meeting. The first regular Council meeting after the 60-day period is February 18, 2015. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (initiate or not initiate) the 60-day public notice process to discuss new and increased recreation fees at the regular Council meeting on March 18, 2015.