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HomeMy WebLinkAboutPackets - Council Packets (786) AGENDA ORO VALLEY TOWN COUNCIL BUDGET WORK SESSION MAY 12, 2008 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE BUDGET WORK SESSION - AT OR AFTER 5:30 p.m. CALL TO ORDER ROLL CALL 1. Follow-up Discussion and Items from May 3, 2008 Budget Work Session 2. Risk Management Program Discussion 3. Zoning Code Upgrades and Modifications 4. Review of Draft Agendas for May 14, 28, and 29, 2008 Budget Work Sessions 5. Future Budget Agenda Items ADJOURNMENT POSTED: 5/09/08 4:00 p.m. cp 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 (520)229-4700. MEMORANDUM DATE: May 12, 2008 TO: Honorable Mayor and Council FROM: David Andrews, Town Manager Stacey Lemos, Finance Director RE: Follow-up Issues from May 3rd Budget Review Session A number of issues were raised during the Mayor and Council's Budget Review Session on May 3rd. This memorandum serves as staff follow-up to these issues. 1.) Issue: Amount of funding removed in Planning & Zoning's budget for expanding the distance for citizen notification efforts from 300 feet to 600 feet. Response: A total of$21,500 was removed from Planning & Zoning's budget for postage, advertising, and printing and binding. 2.) Issue: A request was made for total revenue collected from Parks & Recreation user fees along with a comparison of fees charged by Oro Valley, the City of Tucson and Pima County for Parks usage. Response: Revenue Collected Fee FY 07/08 FY 08/09 User Pro ected Budget 1 g Swimming Pool $85,000 $85,000 Electricity 20,000 20,000 Miscellaneous 228,000 228,000 Attachment A details a listing of fees charges for various amenities by Oro Valley, the City of Tucson, and Pima County. When comparing the fees it is important to note that due to the numerous pool and community center facilities throughout the City and the County, fees for the amenities offered by these locations will vary depending on the needs of the surrounding neighborhoods they serve. Also, only the City of Tucson offers a discount for residents. The City proves residency according to the address of the participant who pays the fees associated with the program or facility usage. 3.) Issue: How much is available in Recreation in Lieu Fees, and list, in priority order, what items Parks wishes to purchase with this revenue. 1 Response: The Parks and Recreation Director will compile a prioritized listing of items to be presented with an action item in a future memorandum. Staff is researching the current available balance of Recreation in Lieu Fees and will have this information for the Budget Work Session on May 14th 4.) Issue: What is the contract amount with the Gordley Design Group and what has been spent year-to-date. Response: The contract amount awarded to the Gordley Design Group was $50,000 for the Naranja Town Site public education campaign. Through April 30th, $9,661 has been expended for a web site design and demonstration at an open house, attending open houses, preparing handouts and a listing of FAQ's for distribution. 5.) Issue: The cost savings realized from the addition of the Procurement program in FY 07/08. Response: Cost savings generated by establishing a centralized Procurement function for the Town of Oro Valley are significant. The majority of these savings are being realized through streamlined procurement processes and procedures, time savings realized by Department personnel and Legal, expanded use of cooperatives, access to professional resources and higher dollar thresholds (resulting in avoidance of costs associated with issuing POs and conducting formal solicitations). In addition to these soft cost savings, the Town will benefit from a number of hard cost savings as well. Although these savings can sometimes be hard to measure, there are a number of areas that they will be seen — negotiated contracts, cooperative contracting, increased competition and online auctions (increased revenues). Some recent figures that we are able to associate to these are detailed in the following: Item(s) Savings or Revenue Note Copiers (7) $104,527.00 Cooperative price vs. retail Online Auctions $ 50,127.00 Revenue generated Sweeper $ 10,000.00 Cooperative price vs. retail Bike Locker $ 3,000.00 Cooperative price vs. retail Office Supplies $ 760.00 Switched to new contract on March 17th (less than 2 months of savings) In addition to the examples listed here other savings will be realized from consolidation of Town requirements under one contract, e.g. Printing, Landscape Maintenance, etc. 6.) Issue: Amounts budgeted in FY 08/09 for Sales Tax and Bed Tax Rebates. 2 Response: o Oracle Crossings $ 285,060 o Oro Valley Marketplace 675,441 o Steam Pump Village 93,345 o Sanofi-aventis 360,000 o Hilton Bed Tax rebate 391,587 7.) Issue: A clearer distinction is requested to show the operating budget for FY 08/09 versus the capital budget and the outside revenue sources dedicated to those specific capital projects. FY 08/09 Operating Budget FY 08/09 Capital Budget $59,334,702 $97,611,321 Recurring Capital Total Capital Municipal Regional 8,275,389 Projects Operations Transportation 0&M 5% 97,611,321 Center, Authority, 24,711,685 62% $30,413,000 $2,314,750 16% %% % , "f %" „� ,, Steam Pu m p s, I 1 �” /i'�/ lA � A ���/� ; , ; _._._._ _ _ _._._._ _. � ;°'' 'i °::::':.*.i $9140",< / � , ; P V Ranch, ,,Riss: ‘44,1\4\ '�'ISOISk. ,,,,,,,,,•,,„,••:P.,;,`,;biae sspi•syrs•,/y a ,4447,1/4 „ ,‘sIlt., Roa , $19,055dways,000 Personnel Naranja Town 26,347,628 Site, 17% $44,914,571 Excludes contingencies and transfers Outside Funding Sources for Capital Projects El Municipal Operations Center F ;•.-" Roadway Improvements Bond Proceeds $26,000,000 PAG Reimbursements $2,506,500 RTA Reimbursements 200,000 1111 Regional Transportation Authority Federal Grant 500,000 RTA Reimbursements $2,314,750 H.E.L.P. Loan 9,300,000 '' Steam Pump Ranch 0 Naranja Town Site Pima County Bond Proceeds $200,000 Bond Proceeds $48,600,000 Federal Grant 450,000 Donations 20,000 8.) Issue: Amount of funding removed for P2 Public Education. Response: $14,000 was eliminated from the Town Council's budget for P2 Public Education. 3 9.) Issue: Information was requested on the cost of the Aquatics program, revenue generated from the program, the number of users and the hours of operation of the pool. Response: o Aquatics Program Projected Cost $ 631,049 o Swimming Pool Projected User Fees 85,000 o Gate Count (FY 06/07) 112,000 (estimated) o Hours of Operation Attachment B 10.) Issue: List of contributors to Naranja Town Site. Response: To date, the Town has received a total of $269,171 in donations for the Naranja Town Site. Of this total, $262,200 is from business/corporate donations, $2,500 from the Sun City Vistoso Community Foundation, and $4,471 in local citizen donations. 11.) Issue: Council inquired about the ability to fund the Capital Asset Replacement Fund (CARF) out of cash reserves for FY 08/09. Response: In prior budget years, funding for replacement vehicles, computers, and equipment has come from General Fund cash reserves. In an effort to keep current on those replacement schedules, staff recommends additional funding from cash reserves for the CARF in FY 08/09. 12.) Issue: Information on the revenue generated from Building Safety activities and associated program costs was requested. Response: FY 07/08 FY 08/09 Projected Budget Revenue Residential Building Permits $1,100,000 $1,100,000 Commercial Building Permits 900,000 486,730 Special Inspection Fees 16,600 20,000 Miscellaneous 1,425 1,600 Total Revenue $2,018,025 $1,608,330 Program Costs Administration $351,720 $ 359,328 Inspection 518,741 568,539 Plan Review 640,890 491,253 Intake & Permitting 146,997 154,256 Implementation Plan 52,567 31,240 Total Program Costs $1,710,915 $1,604,616 Operating Results $307,110 $3,714 4 13.) Issue: What is the detail behind the $(38,560) variance in the CPI & Clean-up program in Planning & Zoning's budget from FY 07/08 to FY 08/09. Response: o Intern position $(14,057) o Personnel realignment to other programs (26,803) o Household Hazard Waste (moved from Town Manager's budget) 3,000 14.) Issue: The budgeted cost of producing the Oro Valley Vista versus the previous year's black and white version. Response: $97,000 is budgeted in FY 08/09 for publishing the monthly, 8-page, color, Oro Valley Vista. In FY 06/07 $28,649 was spent on publishing the bi- monthly, 4-page, black and white version. This total did not include program brochures for Library, Water, and Parks & Recreation that were funded out of those respective department budget. Year-to-date for FY 07/08, $52,372 has been spent. 15.) Issue: Council has requested a policy on distribution of the $1,500 budgeted for each Councilmember for minor Funding for Outside Sources. Response: Staff will prepare a draft policy guiding minor funding requests for Council consideration at a future Council meeting. 16.) Issue: What has been budgeted for Board and Commissions training. Response: $15,000 has been budgeted in FY 08/09 in General Administration. 17.) Issue: A request was made for a listing of revenue sources and uses of these sources. Response: Please reference Attachment C. 18.) Issue: Public Works has requested the addition of a capital project in the Development Impact Fee Fund for a project assessment of Shannon Road from Lambert Lane to Tangerine in the amount of$50k. Response: $50k has been added to the arterial roadways line item. Concurrently, $50k has been added as a revenue source from the Regional Transportation Authority (RTA) to offset the expenditure. 5 1_,A146.3 / Stacey Lemos Finance Director Lr-") -07 f.4.‘1141 491c 62%4A,Aes"et David Andrews Town Manager cc: All Department Heads 6 Town of Oro Valley FY 2008/09 Budget Council Line Item Changes Through May 12, 2008 Department/Division Line Item Increase/(Decrease) GENERAL FUND Recurring Library Capture full cost of Collections Processing charges $ 146,402 Library Increase in PCLD Reimbursement revenue (81,533) Library Fines and fees collected (28,000) Subtotal Recurring $ 36,869 Non-Recurring Subtotal Non-Recurring $ - Total Council Adjustments $ 36,869 Contingency Per Manager's Recommended $ 13,666,898 Total Council Adjustments (36,869) Contingency Per Tentative Budget $ 13,630,029 ;DEV. IMPACT FEE FUND Non Recurring Arterial Roadways Design of Shannon Road (Lambert to Tangerine) $ 50,000 Arterial Roadways RTA Funding for Shannon Road project (50,000) Total Council Adjustments $ - Contingency Per Manager's Recommended $ 907,777 Total Council Adjustments - Contingency Per Tentative Budget $ 907,777 G:\BUDGET\FY 08-09\Council Line Item Changes FY 08_09 5/8/2008 POOL USER FEE COMPARISON ATTACHMENT A Municipality Oro City of Tucson Pima Program Valley City Res Non-City Res County Daily Admission/Open Swim Adult $ 2.00 $ 1.00 $ 1.00 $1.50 - 3.00 Senior $ 1.00 $ - $ - N/A Youth $ 1.00 $ 0.25 $ 0.25 N/A Children $ 0.50 $ - $ - $.50 - .75 Lap Swim Adult $ 2.00 $ 1.00 $ 1.00 $1.50-3.00 Senior $ 1.00 $ - $ - N/A Youth $ - $ 0.25 $ 0.25 N/A Children $ - $ - $ - $.50- .75 Winter(City of Tucson only) Adult $ - $ 1.50 $ 1.50 $ - Youth $ - $ 0.25 $ 0.25 $ - Swim Lessons (All fees are per session) Adults $ 20.00 $ 10.00 $ 13.00 $ 20.00 Youth $ 20.00 $ __ 2.00 $ _ 2.00 $ 20.00 Pool Passes (Summer) Adult $ 70.00 $ 25.00 $ 31.00 Varies by Pool Senior $ 45.00 $ - $ - Varies by Pool Youth/Teen $ 45.00 $ 7.00 $ 9.00 Varies by Pool Children $ 25.00 $ - $ - Varies by Pool Family(2 Adult/2 Youth) $ - $ 37.00 $ 46.00 Varies by Pool Annual Swim Pass (City Only) Adults $ - $ 50.00 $ 63.00 $ - Youth $ - $ 14.00 $ 18.00 $ - Family(2 Adult/2 Youth) $ - $ 84.00 $ 105.00 $ - Multiple admission punch pass 30 admissions for Adults $ - $ 30.00 $ 38.00 $ - 30 admissions for Children $ - $ 7.50 $ 13.00 $ - Water Aerobics/Fitness (per entry) Adult Swim for Fitness $30/Month N/AN/A $ 3.00 Aqua Fitness $3/Class;$40/Season N/A� N/A $ 3.00 Summer Swim Programs Competitive Swim $ - $ 6.25 $ 8.00 $ - Synchronized Swim $ - $ 15.00 $ 19.00 $ - Diving Lessons $ - $ 10.00 $ 13.00 $ - Swim Team $ - $ - $ - $ 20.00 Pool Comparison PARKS USER FEE COMPARISON ATTACHMENT A Municipality Oro City of Tucson Pima Park Amenity Valley City Res Non-City Res County Ramadas Half Day $ - $ 7.00 $ 9.00 $ - Full Day $ 25.00 $ 14.00 ' $ 18.00 $ 25.00 Field Use (per hour rates) (3 hour limit unlit) Unlighted $ 2.00 $ 16.00 1 $ 20.00 $ 10.00 Lighted $ 7.00 $ 19.00 ' $ 25.00 $ 15.00 (2 hour limit lit) Beer Permits N/A $ 18.00 $ 23.00 N/A Court Rentals (Per hour) (2 hour increments) (Per 3 hours) � Basketball N/A $ 12.00 $ 16.00 NP $12/FP $20 VolleyballN/A $ 12.00 $ 16.00 NP $12/FP $20 Tennis $ 2.00 $ 12.00 $ �16.00 NP $12/FP $20 Racquetball $ 2.00 $ 12.00 ' $ 16.00 NP $12/FP $20 NP=Non Profit FP=For Profit Parks Comparison ATTACHMENT B Oro Valley Municipal Pool Hours Shoulder Seasons (January 15 — May, and September— November 15) Monday 11.5 hours 8:30 a.m. — 8:00 p.m. Tuesday 14.0 hours 6:00 a.m. — 8:00 p.m. Wednesday 11.5 hours 8:30 a.m. — 8:00 p.m. Thursday 14.0 hours 6:00 a.m. — 8:00 p.m. Friday 11.5 hours 8:30 a.m. — 8:00 p.m. Saturday 5.5 hours 12:00 p.m. — 5:00 p.m. Sunday 5.5 hours 12:00 p.m. — 5:00 p.m. Total of 73.5 hours per week during the shoulder seasons Peak Season ( June —August) Monday 15.0 hours 6:00 a.m. — 9:00 p.m. Tuesday 15.0 hours 6:00 a.m. — 9:00 p.m. Wednesday 15.0 hours 6:00 a.m. — 9:00 p.m. Thursday 15.0 hours 6:00 a.m. — 9:00 p.m. Friday 15.0 hours 6:00 a.m. — 9:00 p.m. Saturday 7.0 hours 12:00 p.m. — 7:00 p.m. Sunday 7.0 hours 12:00 p.m. — 7:00 p.m. Total of 89 hours per week during the peak season .. .. 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J 0 C 0 <`I— I—i LLl 0 t 0 a) 0 Ca CO 0 — a) C.) o N •L 4.., X 2 O a'cC _J i,a co CC E LL E Lu MEMORANDUM DATE: May 12, 2008 TO: Honorable Mayor and Council FROM: David Andrews, Town Manager Stacey Lemos, Finance Director RE: Follow-up Issues from May 3rd Budget Review Session A number of issues were raised during the Mayor and Council's Budget Review Session on May 3rd. This memorandum serves as staff follow-up to these issues. 1.) Issue: Amount of funding removed in Planning & Zoning's budget for expanding the distance for citizen notification efforts from 300 feet to 600 feet. Response: A total of $21,500 was removed from Planning & Zoning's budget for postage, advertising, and printing and binding. 2.) Issue: A request was made for total revenue collected from Parks & Recreation user fees along with a comparison of fees charged by Oro Valley, the City of Tucson and Pima County for Parks usage. Response: Revenue Collected FY 07/08 FY 08/09 User Fee Projected Budget g Swimming Pool $85,000 $85,000 Electricity 20,000 20,000 Miscellaneous 228,000 228,000 Attachment A details a listing of fees charges for various amenities by Oro Valley, the City of Tucson, and Pima County. When comparing the fees it is important to note that due to the numerous pool and community center facilities throughout the City and the County, fees for the amenities offered by these locations will vary depending on the needs of the surrounding neighborhoods they serve. Also, only the City of Tucson offers a discount for residents. The City proves residency according to the address of the participant who pays the fees associated with the program or facility usage. 3.) Issue: How much is available in Recreation in Lieu Fees, and list, in priority order, what items Parks wishes to purchase with this revenue. 1 Response: The Parks and Recreation Director will compile a prioritized listing of items to be presented with an action item in a future memorandum. Staff is researching the current available balance of Recreation in Lieu Fees and will have this information for the Budget Work Session on May 14th 4.) Issue: What is the contract amount with the Gordley Design Group and what has been spent year-to-date. Response: The contract amount awarded to the Gordley Design Group was $50,000 for the Naranja Town Site public education campaign. Through April 30th, $9,661 has been expended for a web site design and demonstration at an open house, attending open houses, preparing handouts and a listing of FAQ's for distribution. 5.) Issue: The cost savings realized from the addition of the Procurement program in FY 07/08. Response: Cost savings generated by establishing a centralized Procurement function for the Town of Oro Valley are significant. The majority of these savings are being realized through streamlined procurement processes and procedures, time savings realized by Department personnel and Legal, expanded use of cooperatives, access to professional resources and higher dollar thresholds (resulting in avoidance of costs associated with issuing POs and conducting formal solicitations). In addition to these soft cost savings, the Town will benefit from a number of hard cost savings as well. Although these savings can sometimes be hard to measure, there are a number of areas that they will be seen — negotiated contracts, cooperative contracting, increased competition and online auctions (increased revenues). Some recent figures that we are able to associate to these are detailed in the following: Item(s) Savings or Revenue Note Copiers (7) $104,527.00 Cooperative price vs. retail Online Auctions $ 50,127.00 Revenue generated Sweeper $ 10,000.00 Cooperative price vs. retail Bike Locker $ 3,000.00 Cooperative price vs. retail Office Supplies $ 760.00 Switched to new contract on March 17th (less than 2 months of savings) In addition to the examples listed here other savings will be realized from consolidation of Town requirements under one contract, e.g. Printing, Landscape Maintenance, etc. 6.) Issue: Amounts budgeted in FY 08/09 for Sales Tax and Bed Tax Rebates. 2 Response: o Oracle Crossings $ 285,060 o Oro Valley Marketplace 675,441 o Steam Pump Village 93,345 o Sanofi-aventis 360,000 o Hilton Bed Tax rebate 391,587 7.) Issue: A clearer distinction is requested to show the operating budget for FY 08/09 versus the capital budget and the outside revenue sources dedicated to those specific capital projects. FY 08/09 Operating Budget FY 08/09 Capital Budget $59,334,702 $97,611,321 Recurring Capital Total Capital Municipal Regional 8,275,389 Projects Operations Transportation 0&M 5% 97,611,321 Center, Authority, :-, •:,: $, 2 ,3 1 4,750 24,711,685 , Vi ,\ �t a „ �62% $30,413,000 16% Steam Pump m p :a0r. •� . `i` � Ranch, � $914,000 \, ,\\�`,\\: � � ,,;\ C\� � _ _ _._ _ _ _. ! o; � �1 \� ,• \ \ N � �10 • vx x, °x•! 4o ♦+arx• \ x ♦ .. , v\v \ ' za`rY z kxV �'.'$ xy�ya ' • o\\ ti p ..xa :iwlve � :,,cRoadways, $19,055,000 Personnel Naranja Town 26,347,628 Site, 17% $44,914,571 Excludes contingencies and transfers Outside Funding Sources for Capital Projects I I Municipal Operations Center r] Roadway Improvements Bond Proceeds $26,000,000 PAG Reimbursements $2,506,500 RTA Reimbursements 200,000 MI Regional Transportation Authority Federal Grant 500,000 RTA Reimbursements $2,314,750 H.E.L.P. Loan 9,300,000 KW Steam Pump Ranch I ' I Naranja Town Site Pima County Bond Proceeds $200,000 Bond Proceeds $48,600,000 Federal Grant 450,000 Donations 20,000 8.) Issue: Amount of funding removed for P2 Public Education. Response: $14,000 was eliminated from the Town Council's budget for P2 Public Education. 3 9.) Issue: Information was requested on the cost of the Aquatics program, revenue generated from the program, the number of users and the hours of operation of the pool. Response: o Aquatics Program Projected Cost $ 631,049 o Swimming Pool Projected User Fees 85,000 o Gate Count (FY 06/07) 112,000 (estimated) o Hours of Operation Attachment B 10.) Issue: List of contributors to Naranja Town Site. Response: To date, the Town has received a total of $269,171 in donations for the Naranja Town Site. Of this total, $262,200 is from business/corporate donations, $2,500 from the Sun City Vistoso Community Foundation, and $4,471 in local citizen donations. 11.) Issue: Council inquired about the ability to fund the Capital Asset Replacement Fund (CARF) out of cash reserves for FY 08/09. Response: In prior budget years, funding for replacement vehicles, computers, and equipment has come from General Fund cash reserves. In an effort to keep current on those replacement schedules, staff recommends additional funding from cash reserves for the CARF in FY 08/09. 12.) Issue: Information on the revenue generated from Building Safety activities and associated program costs was requested. Response: FY 07/08 FY 08/09 Projected Budget Revenue Residential Building Permits $1,100,000 $1,100,000 Commercial Building Permits 900,000 486,730 Special Inspection Fees 16,600 20,000 Miscellaneous 1,425 1,600 Total Revenue $2,018,025 $1,608,330 Program Costs Administration $351,720 $ 359,328 Inspection 518,741 568,539 Plan Review 640,890 491,253 Intake & Permitting 146,997 154,256 Implementation Plan 52,567 31,240 Total Program Costs $1,710,915 $1,604,616 Operating Results $307,110 $3,714 4 13.) Issue: What is the detail behind the $(38,560) variance in the CPI & Clean-up program in Planning & Zoning's budget from FY 07/08 to FY 08/09. Response: o Intern position $(14,057) o Personnel realignment to other programs (26,803) o Household Hazard Waste (moved from Town Manager's budget) 3,000 14.) Issue: The budgeted cost of producing the Oro Valley Vista versus the previous year's black and white version. Response: $97,000 is budgeted in FY 08/09 for publishing the monthly, 8-page, color, Oro Valley Vista. In FY 06/07 $28,649 was spent on publishing the bi- monthly, 4-page, black and white version. This total did not include program brochures for Library, Water, and Parks & Recreation that were funded out of those respective department budget. Year-to-date for FY 07/08, $52,372 has been spent. 15.) Issue: Council has requested a policy on distribution of the $1,500 budgeted for each Councilmember for minor Funding for Outside Sources. Response: Staff will prepare a draft policy guiding minor funding requests for Council consideration at a future Council meeting. 16.) Issue: What has been budgeted for Board and Commissions training. Response: $15,000 has been budgeted in FY 08/09 in General Administration. 17.) Issue: A request was made for a listing of revenue sources and uses of these sources. Response: Please reference Attachment C. 18.) Issue: Public Works has requested the addition of a capital project in the Development Impact Fee Fund for a project assessment of Shannon Road from Lambert Lane to Tangerine in the amount of$50k. Response: $50k has been added to the arterial roadways line item. Concurrently, $50k has been added as a revenue source from the Regional Transportation Authority (RTA) to offset the expenditure. 5 Stacey Lemos Finance Director David Andrews Town Manager cc: All Department Heads 6 TOWN OF ORO VALLEY Page 1 of 2 COUNCIL COMMUNICATION MEETING DATE: 05/12/08 TO: HONORABLE MAYOR AND COUNCIL FROM: Sandra Abbey, Human Resources Director SUBJECT: Risk Management Program Discussion SUMMARY: The Human Resources Department budget for fiscal year 2008-2009 includes a request to add a Safety and Risk Manager to oversee compliance with Arizona Department of Occupational Safety and Health (ADOSH) regulations, as well as to act as the liaison between the Town and the Arizona Municipal Risk Retention Pool in the provision of fiscally responsible risk and loss control practices. The Town's Safety, Loss Control and Risk Management programs are currently not at the desired level of compliance to ensure the Town is working toward improved prudent and responsible actions to manage and potentially prevent financial and human losses to the Town. Please note that this position is a town-wide position, not a position to oversee only one department or group of departments. All employees are responsible for working safely and reporting hazardous conditions or accidents, and department directors are required to oversee the safety of their departments; however, the complex mandatory legal requirements that must be followed can easily require a full-time, OSHA certified staff member to coordinate, train, and keep the employees and directors informed of mandated requirements and updates to the laws. Additionally, without adding this position existing staff members have not been able to adequately assess our current risk position, analyze gaps in our compliance, and develop necessary actions to attain cost savings and shore up the Town's adherence to mandatory requirements. These higher level assessment, analysis, training and development, safety and loss control activities would be performed by the new position. Finally, a portion of the duties and responsibilities of this position are currently being done by a staff member in the Police Department, thereby placing the Police Department in an understaffed situation. However, due to the extreme need for the Safety and Risk Management position, the Chief of Police has been very tolerant and accommodating in allowing this staff member to take on the responsibilities dealing with Safety Training and Chairing the Loss Control Committee. This staff member, Mr. Bob Easton, is willing and able to take on the full scope of this job, and has obtained the proper certifications and education to do so. However, at this point in time the majority of the additional risk management activities are not adequately being performed, as evidenced in the recent legal department audit that emphasized a lack of oversight, analysis and potentially cost-saving measures related to our general liability insurance. The Safety and Risk Manager would have the g responsibility for assessing the cost saving measures that could potentially provide a valuable return on investment to the Town. It is our intention to transfer Mr. Easton in order to provide him the necessary support and emphasis on the full- TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION MEETING DATE: 05/12/08 scope of this position town-wide, and thus enable the Police Department to fill their training sergeant position that Chief Sharp has not filled for the last year. Attached are a PowerPoint slide presentation describing the full scope of the Safety and Risk Manager position; an example of the type of program and cost savings potential, in amount of $2,000,000 that another similar sized municipality has achieved in the five years following their implementation of this type of program; and finally a list of OSHA's top 25 compliance issues and the fines enacted during 2007. FISCAL IMPACT: The initial funding of this position for salary, benefits and work related supplies is approximately $104,000 annually. It is expected that a review of workers compensation and general liability insurance coverage, and enactment of compliance with legally required programs could potentially save the Town much needed funds in future years. Upon approving this position, the Council may certainly wish to request regular reports related to program accomplishments and cost savings. ATTACHMENTS: 1) PowerPoint Slide Presentation 2) Goodyear's 5 year report of approximately $2,000,000 in savings over the first five years of enacting a Benefits, Safety and Risk Management division and subsequently conducting a self- audit of risk management programs. 3) Top 25 OSHA violations and fines COUNCIL DIRECTION TO STAFF: Sandra Abbey, Human R-:ources Director _Ln 061 David Andrews, Town Manager • • Risk Management Program Duties and Responsibilities of the Safety and Risk Manager AZ Dept of Occupational Health and Safety (ADOSH) and Occupational Health and Safety Administration (OSHA) Requirements Recordkeeping and Posting of o Accidents o Exposures o Workplace Injuries and Illnesses o Lost Work Time o Fatalities • Attachment 1 • • ADOSH & OSHA REQUIREMENTS continued ► Policies, Procedures, and Mandatory Training • Ergonomics • Bloodborne pathogens • Hazardous chemicals • Machine guarding • Working in confined spaces • Workplace hazards and Lockout Tagout • Emergency action plans • Electrical and fire safety • Labeling and signing of facilities • Materials handling and storage requirements • Use of personal protective equipment • Health and safety programs ,k CC 11116:...: >, Attachment 1 Risk Management Requirements ► Written Fleet Safety/Auto Accident Prevention Policies and Training for vehicle operators ► Facility Safety Standards - Including Safety of General Members of the Public while on Town Property ► Compliance with Dept. of Transportation requirements for Drivers and Equipment Operators ♦'ti.:v::�vi!,.•��/.9/�::.:':v::::::.�:::is i:::::::.:::.::'::::is ii:•::::::'i.' . • •�v;^�`.>.v'. '•:Tti::,>.::e::;::::i;!•,:::::5::::::>:::i::::i:::::::::'::i:'i>:'L���G:%;'i'i;9.:.:. n•ti•••. {:>!,>.%:j$i:'{�{:iiii::iij::j::viiii::ii iii iii i!::i:�Y:j ii;�ii:'{.ii ii�i:i:i:;�iivi �i4\i:itiH:. •!r'>•r'�}ri'i::i:l!�:�n:i iiii::::i:::::iiiii::ii is iii:i$i:�ii Y:iiiii.::::It{:C;;�':>i:h'..,. ��'$` �{' ~>•:2-'Y Attachment 1 Risk Management ► Compliance and Training on Town Policies and Procedures ► Inspection of Town Facilities, Analysis of Potential Hazards, Establishment of Mitigation and Prevention Actions ► Assessment of General Liability Vulnerabilities, Analysis of Insurance Coverage Needs, Implementation of Cost Saving Measures Attachment 1 Penalties for NonCornpIianc ► Violations can vary from record keeping or posting violations, to serious violations with the potential for injury or death (such as failure to train employees in safety policies and procedures); to Willful violations in cases where the employer knew about the safety hazard or non-compliance and continued in the unsafe practice or remained out of compliance. ► Penalties can rage from $ 1 ,000 to $70,000 ► Non-OSHA penalties would be the cost of litigation in the event of a legal claim, including any settlements or judgments. �`�•,:::<}:;:.<;.;::}:::::::::.,::::::::::::::::. .,.x;.,� Attachment 1 .+.:k+•.>:?';a£:}}>::{:::i::i5:G:5:i?::i;:::;:'::::i:::..::1:::ti;:;;'r:Yt::';::r::':Y:••i.:.t;iif:H.•$ • • Penalties Table • Other Than Serious (failure to ► $1 ,000 to $7,000 post Job safety notices, annual summary of injuries and illnesses (per posting) or OSHA 300 log) ► $3,000 (per day) • Other Than Serious (failure to post an OSHA citation) ► $5,000to $ • Other Than Serious (failure to report a fatality or accident requiring hospitalization of 3 or more employees within 8 hours) 111010111!ppluppooplygoolurpoopeggil, 111111111101101Npliiiiligig111:111111 moillo........:.:...: ..3 <'''<:%iii;<;;:;}::q::: :.�::»:»:::::»:»:»nf:r»».,fl:r::::1:::'•::::1.:.I::.::::(.I.t(.::}:':',.::•::::::•;;;;;;':::.:::::::::::::.::::::::::::::::::::.::::::};:.;i}:.;;;t;;::;::;::;::;;o;;i:�}• ;;.;»:.:;;.:.}:•}»:;•:••::•:::::::i:}}}:is<'i';:5:�:'#'•%'''% i>.:::is s..:::::.;::>::..::i tiTylsolloolic Attachment 1 Penalties • Serious Violations • $1 ,500 to7 $ ,000 • Willful Violation • $5,000 to $70,000 • Repeat Violation • Up to $70,000 per day • Criminal Penalties • Up to $10,000 and S i x Months in prison — Falsifying Records • Up to $5,000 and Three — Assaulting a Compliance Officer Years in prison '•::;<r%`::::is•`Fiii'riiU.i�iiirS:�ii{.:.^v:»:»::».;::ii::?::y^:}v::;+5:r:»r:•}»::$•{Fii7»ii:»ii}»:T:ii'•:^er:}9F:}»rr:::}'r:^.. .--.--.-- _;..�............::.. ::.w•• rr:::::rr;:». .r:./::f;.rr.'r:$:»br:+.r.,»�:W:{r.•x:»;:.. .. i. N.n r:;.:;4 v:::. .;%,/.:,.rh nu;ar,}S:r.'..;5,:„r;.,:r.r»»::f�..:�•:�..»r.:,,:::/r, :::::.::»»»::».::.r:,;.::.»»:...:..:Y:::::.7 ........:. ...:::::::.:::::,rn.'r»»;.: .. .<:+:;•7 1.111111:111.11,111111110,11111111.11:11:111111111111:111111.:::: ::iii::'•:: :::::.::.:::::::::::. Attachment 1 POTENTIAL RETURN ON INVESTMENT • Potential insurance savings for Workers Compensation and/or General Liability insurance • General Liability Lawsuits are Less Likely • Avoidance of Penalties for Non-Compliance • Prevention of Accidents, Injuries, Fatalities 4 k <' <> Attachment 1 ......:::. IMPACT ON RESIDENTS/COMMUNITY ► Minimize Lost Work Time Loss of productive work time = longer time to repair streets and roads, fewer water utility staff to read and replace meters, less than full staffing of commissioned police officers on the streets to protect the public ► Oversight of Town Facility Safety Standards ► Funds Spent on Liability Settlements not Available for Other Community Needs �...'•"•;"•' '>?{:�; Attachment 1 Job Description Responsibilities Manager • Conducts safety • Conducts job hazard inspections, evaluates assessments, potential hazardous ergonomic reviews and exposures, investigates risk management accidents, analyzes evaluations of various incidents, prepares work-sites, tools and reports and equipment; using recommends corrective safety, industrial and/or preventative actions for risk hygiene, emergency mitigation. response and occupational health fundamentals. Attachment 1 Job Description ► Provides assistance • Identifies safety and consultation to training needs, managers, supervisors develops curriculum and employees on and training safety related issues materials/resources, including training, and conducts coaching and comprehensive safety mentoring safe work training programs, behaviors and including initial and attitudes. recurring training for compliance and informational purposes. Attachment 1 job Description ► Coordinates with ► Maintains record Human Resources and systems for compliance Finance Department in and organizational administering workers purposes compensation and general liability insurance programs. ► Chairs Safety/Loss Control Committee. Attachment 1 job Description ► Responsible for motor • Fosters communication vehicle safety and cooperation between programs, policies and various departments administrative including (but not limited guidelines, includingto) Human Resources, Finance coordinating the , Legal and the Police Department in administration of CDL p provision of occupational and DOT requirements. health, wellness, financial and personnel loss control programs. Attachment 1 Benchmarking Attachment 1 ► BENCHMARKING • Marana - Safety and Risk Coordinator - HR Dept. • Goodyear - Risk Manager and Safety Specialist - HR Dept. • Apache Junction - Safety Manager - Public Works • Buckeye - Safety Manager - HR Dept. • Casa Grande - Safety & Risk Specialist - HR Dept. • Scottsdale - Risk Manager - Finance Dept./Safety Manager - HR Dept. • Glendale - Safety and Risk Manager - HR Dept. • Flagstaff - Risk Manager and 2 Safety Staff - Deputy City Manager • Peoria - Risk Manager - Legal Dept. • Glendale - Safety and Risk Manager - HR Dept. • Queen Creek - Risk Manager and Safety Coordinator ...h.... - HR Dept. A ATTACHMENT 2 Risk Management Background April 11, 2008 FIVE YEARS AGO A formal Risk Management program was started on March 3rd, 2003 with the hiring of a Risk Management professional. Prior to that the City only processed claims and associated paperwork to the different insurance carriers. At that time the City had no formal safety program little training and few training records. Our general liability deductible was at $10,000 and our Health insurance costs were two million per year. Few programs were in place and opportunities to for improvement were at every turn. One of the unique features of our Risk Management program is that Risk Management is responsible for insurance Benefits and wellness initiatives as well as Workers' Compensation, Property and Casualty lines of coverage, safety and compliance training, "exception" contract review and claims & litigation management as it relates to these areas. Risk Management has taken a proactive role in identifying exposures to risk and reducing their associated costs. This has been done through increased deductibles, self insurance of some lines of coverage, new programs and procedures, strong negotiation skills, detailed audits as well as many other Risk Management initiatives. This report will outline where we are today, what some of the successes have been along the way and a summary of key opportunities and challenges on the near horizon of one to five years. The Risk Management Pie charts listed on the next page show the expected premiums to be paid in each of the key areas of insured programs for 2008-2009 that Risk Management oversees and for 2005-2006 for contrast. ATTACHMENT 2 Risk Management Pie 2008-2009 $7,410,768 Deductibles&Small Workers' GL Reserve,105,755, Claims,110,000,1% -Compensation, 1% $464,235,6% Other Benefits, ; \k�` Property and Casualty, $895,000,12`)/0 $735,778, 10% Is Health,$5,100,000, 70% For comparison purposes the chart below shows the Risk Management Pie from three years prior. 2005-2006 Insurance Costs $4,079,194 Total Ins.Deductible 7 110,000 GL Reserve 71,594 1 il IlrA ill Workers'Comp $255000 Risk Ins 670,000 Other Benefits 572,600 //1///"F Health$2,400,000 • ATTACHMENT 2 The following is a list of some of the accomplishments and their associated cost savings that Risk Management has generated. These are broken down into the areas of: General Liability Safety and Workers' Compensation Benefits Other Risk Management Mission Critical Accomplishments Summary GENERAL LIABILITY The City is insured for liability, property& casualty and auto with the Arizona Municipal Risk Retention Pool. The Pool is the largest insurer in the State of Arizona for governments and has consistently paid the City dividends ranging from $40,000 to $85,000 over the last ten years. The City carries 2 million dollars in liability coverage with no annual aggregate and a 13 million dollar umbrella. We have a $250,000 deductible for general liability and a $1,000 deductible for our Auto liability. One of the unique features of being insured with the Pool is that, although limited, we have Land Use Liability coverage that has all but disappeared in the open market. The relationship with our carrier has been a good one. They have an excellent claims staff that is both responsive and effective. They are flexible in their coverage and not as rigid as those carriers in the open market. Some of the Risk Management accomplishments as it relates to this area are: • Gradually increased our liability deductible from $10,000 in the 2002-2003 policy year to the current $250,000 deductible with a $500,000 aggregate. These moves have saved us $1,332,048 net after paid losses. • Established a reserve fund as a method of paying for anticipated large claims. The current reserve fund balance is $921,954. This fund provides financial stability and a mechanism to move toward future increases in our deductible/risk retention levels. • Reviewed our existing property values was performed and those values were increased by 20% to insure that the properties would be fully insured in the event of a loss. ATTACHMENT 2 • Audited our fleet and discovered vehicles no longer owned by the City were insured and new vehicles that had been purchased had been inadvertently omitted from coverage. The net effect was an annual savings of$20,445. • Recommended to Arizona Municipal Risk Pool Board an increase in coverage on our auto line of insurance to include physical damage for rented vehicles while on City business. The board approved the recommendation without cost to the City. The City will save in excess of$4,000 annually in rentals as a result. • Changed the annual renewal rate allowing us to use the previous year's exposures for the following year's premium ratings. This change in renewal dates saved the City$50,000. • Changed our comprehensive and collision deductibles on our fleet from 250/500 to 1,000/1,000. This move has saved the City $48,000 and is anticipated to increase in future years. • Changed the uninsured underinsured coverage from 100,000 to zero. This coverage is not necessary for the City to continue to carry. This change has saved the City$14,959 and will increase in future renewal periods. SAFETY AND WORKERS' COMPENSATION The City's Workers' Compensation program is fully insured with the State Compensation Fund, the largest carrier in the State for Workers' Compensation. We are on a dividend plan and have joined the Arizona Small Business Association to enhance any earned dividends. We have not had litigation involving a Workers' Compensation claim during the last five years. Our claims personnel are very knowledgeable and we have an excellent working relationship. Our Workers' Compensation program continues to have low experience modification factors, currently .67, and in most years we are receiving dividend returns from $30,000 to $100,000 due to low loss ratios. Some of the Risk Management accomplishments as it relates Workers' Compensation are: • Acted as a catalyst to facilitate training of existing programs in late 2003. In February 2004 (O.S.H.A.) conducted a detailed and unannounced audit of our facilities, programs, and training records resulting in no fines assessed to the City. This early intervention saved the City an estimated $20,000 in fines and penalties. ATTACHMENT 2 • Implementation of a comprehensive and all inclusive light duty program for employees injured on the job. • The safety program is near 100 % compliant and the City has achieved the S.afety H.ealth A.chievement R.ecognition P.rogram (SHARP) award from Arizona OSHA. We are the only municipality in the State of Arizona to hold this designation. • Received a total in dividend returns over the last five years of$259,199. BENEFITS Our Benefits package is very competitive as compared to those offered by other municipalities. Our premium for Health care is currently the lowest cost of our survey cities with Preferred Provider Organization (PPO) plans in place. Our benefit package is one of the most comprehensive and includes; 1. Health care 2. Dental care 3. Vision care 4. Life and voluntary life with dismemberment coverage 5. Trip insurance 6. Commuter insurance 7. Dependant care and Medical care section 125 plans 8. Aflac supplemental insurance 9. Prepaid legal program 10. Retirement Health Savings plan 11. Short term disability 12. Long term disability 13. Wellness initiatives such as onsite influenza vaccinations, mammograms, health questionnaires and blood draws, weight loss challenge, stop smoking program, walk for life, health fair, and many educational sessions targeted at improving our health. ATTACHMENT 2 Health Care Premium Comparison Today Premium Comparison $1,44 ,:'s::\:,',,,:!':,Z.,:,'.,i\,',,4',„,,, ,.:.:;.,,::.1:.:—.:.::.:2.,...,::::,::::.::...:::2.::.:.:..:..„..-..-M'...,::i..'.:::.t11—I.''::.'.,:.',:.'.!':!'.,.!!:.::,1.::•.,.4••:,,.!':'„',.•,!,:•.... ..:..:„.....„..„..,.....,..•....,,'I,,",.,,1,:.1,"''1i"1,i:".1•1.i",1:".'iii.ii.:,ii1".li1.i:"l,.l1.."1i."..",..,.li.Ig.i.,kItIi::.,,k.,,-.:n4I4,..1e1.I”- . ::.......:. -.'e...'..:.1.,.:.:......:.7::..!1.':::....‘...:.:..‘..::.7.\i.,b'\!k,'k\\\:.Z,i,:,i-.:,::,::,•,,,. 'l,i,\„,:\.si',k.:f,:,,\':,'\k,,:\.,k ,,,,,,,.,,i,i:,::,,,,:,:,:,,.:.:,.:,.,,i.;.,.,,.:i-.:1:;,:,:i:,:,.,„,:,.,,,:,.:,7:,:,::,,,,,,,::,::1::,.:,:,,::,:„",,::,,:,,.',,.;,,,.::":.::,7:.:::7.::,.•,K,',1', ,..!is1t\'\k..1\:,.1:1:'.1s'%,:,$::i\:,.1,,i,:A',,,:t:kk,l:k::.':i'kW:3:1::1:::: :::ii':i:is2:!!:NN,11::sl.::,l:1l::.[ \\ .....:.:..::..:.,..::....,...,..„:..:..Z'\\•\\\\I11i:1.1.11i $1,200 \\ :`1.Ii!i:•......'\:„..„,Zs\ks:'1',.,'!'.i ,i,..iA..s,i:%.„:'ii...al1t„:•1),•1f14•::1„1.kk1ik'.4.4.„,,g.:.„,.I...sk.1...i,1.,!Z.'i. :0 l':1:,!'',.'., <L.•.........•..........-I„,„„„*.:—'''':'.:'::':.',: -.!.lt,.i0.,-.l„-'-.',..„‘,„,,:„\,,.,1„".1..". E..;t.N....„.p.\ ;N„,,I..,, .:;.;.::;:.>:::::;::::::... N,i1ll':,%1 ......................:. ...............::::::::: 1 000 \\\,..: $800 \\ $600 \ i,`� \ \\ \ :. , .1sll"V1,ii.1i;1kis.„k.-l's\:k,,.:tl*,: 400 ! P $200 — 1 ``. :{:` \ ..,\p t $0 :;,... \i1..ti1:!E,1li„! iri!, Goodyear Surprise Avondale Buckeye Peoria Tempe Gilbert Phoenix ,Employee®Family Premium Comparison After Renewal ,.rs;.,s .:„„,i,...;„.,zp., i.l!::.'..'.-.',,'',,,',,,::::::‘...-...,1k4'k•<\\ssq7;.41i\„„•41\''11\14:k"s`I.\1z $1,400 ........ .;ti,.l..4i:,v 111,. 4..0,,..l.,.•s ,N":,:"::1::,.1:1,1”' 1:1L-o:,-.: i...\k,:.,:..,.„..',ii,.O :,:,,'`A:,i,1‘,•\>.*•\ 'Z:'l,:;.)'i • $1,200 \ \t ;,..:,k1.`,,. .0'„t„-"1,1', 11t1 y::::::.::... .•.\.:iiszi„\.l14.,\\\\\\z$i'1i.:,sil:4.1N...I1,..1t1.1,;.s1'\1 ..•—!''::'''.''..I-llk:.1k;iisi4ii.;,;%,k,,":••'tl„..i,,.:.,s„,.„.,.,1. .slmt,:...,,*s:\t,.l..,':..,i ,.l,.i!A:"4l,'m,1.i11,•i::"i'1,•'::i:'T:::,,',,'::','i1,'':,„,!,i1:R:i1'l':.„„il.1:4,"i...1i''.'.'i'.„i.,'..„iM1':•il'".7i'::i-'.'..„i,idli'.1"1kI...:' $1,000 `4:�. \\, `� 1'i,.'i11 800 \ \;\, $600 \ .4.i1 \\\ n,o $400 ......... `......................... ......................... ,, \ 4h! \ $200 $0 \, Goodyear Surprise Avondale Buckeye Peoria Tempe Gilbert Phoenix Employee®Family ATTACHMENT 2 Our plan design is a traditional one with no coinsurance and no deductible for out patient surgeries. After renewal we would appear to be in the middle of the pack but our attractive plan design continues to place us near the top in overall benefit for the premium. This chart does not take into account increases for 2008-2009 that the other entities have incurred. Some of the Risk Management accomplishments as it relates to benefits are: • Aggressively negotiated benefit plans to achieve the lowest price with the most attractive benefits as compared to other Cities. • Established a Benefit Stabilization fund to pay for wellness initiatives, self insurance of programs in the future and to assist in unforeseen increases in our benefit programs. The current balance is $679,490. • Implemented a comprehensive wellness program. These programs have been incrementally put into place over the course of five years. They include; 1. Weight loss challenge 2. Walk for Life program 3. Influenza vaccinations 4. Health screenings including a blood draw/ risk assessment and associated report sent to the employees home for review 5. Free on site mammograms • Changed our Employee Assistance Program providers from Com Phsyc to United Health Care. This move saved the City an estimated $40,200 over the last three years. This move also made it possible for employees to continue to see the same provider once covered visits were utilized preventing the need to change providers mid way through treatment. • Implemented financial incentives for our employees to not take our health and dental insurance programs providing they provided proof of coverage elsewhere. This program has saved the City an estimated $172,800 over the last two years. • Researched, designed and implemented a Retirement Health Savings plan allowing employees to save money pre tax, growing tax free and to be used tax free to pay for medical, dental and related premiums after separation from the City. • Self-insured our Short Term Disability in fiscal 2007-2008 resulting in a $60,000 savings over premiums that would have been incurred. • Negotiated as appropriate with our broker to reduce their commission as the total premium volume has increased. This has resulted in a savings of over $85,000 to date. ATTACHMENT 2 • Changed the Short Term Disability program from a third party administrator to self administered effective July 1 of 2008. This move will save us in excess of $12,000 annually. OTHER RISK MANAGEMENT MISSION CRITICAL ACCOMPLISHMENTS • Updated and enhanced contractual language in favor of the City. This has been placed into boiler plate contract documents to insure that the City is legally and financially protected. • Established a certificate tracking program in a shared data base making it easy for employees across the City to access information on what vendors have coverage on file with the City and for what amount. When a vendor is working on our behalf or in our right of way these additional insured certificates on file assure a funding source for claims other than City funds and insurance. • Developed, implemented, and trained employees on our Drug and Alcohol policy and put in place policies and procedures to obtain CDL compliance including random drug screen testing. • Enacted a process where entities receiving a permit to work in our right-of-way are now required to show proof that the City is named as an additional insured prior to a permit being issued. • Established a short-term shared Risk Management program with the Town of Buckeye netting the City $53,081 over a seventeen month period. ATTACHMENT 2 SUMMARY Through the vision of Council and City Management in establishing a Risk Management program, quantifiable dollar savings have exceeded $2,180,000 over the last five years. Because of programs, policies, practices and procedures put in place it is anticipated that these savings will accumulate to over$6,000,000 over the next five years. These numbers do not include the savings that have been achieved through aggressive and calculated negotiations with our insurance carriers. Risk Management takes a front and center negotiation position in all renewals and builds professional business relationships with those underwriters and key players that make a difference in our renewal numbers. It is this one on one, client to carrier approach that has placed us at the head of the pack in terms of premiums paid and benefits provided. Risk Management will continue to look for out-of-the-box type opportunities such as shared Risk Management services with other west side entities that are too small to have their own Risk Management team but would benefit financially from such an arrangement. We will continue to participate in State and local organizations that can benefit the City of Goodyear and our long term Risk Management goals. Currently the Risk Manager serves as; the President of the Arizona Public Risk Managers Association, Board Member on the Arizona Small Business Association Safety Committee, Commissioner and Chair of the Loss Trust Fund Board for the City of Scottsdale as well as membership with Arizona Governmental Safety Association and Arizona Society of Safety Engineers. The future is uncertain. We can reduce a portion of the financial uncertainty through effective and methodical Risk Management techniques. The education and networking opportunities with State wide professionals assists us with this goal. The greatest threat to the City from a Risk Management perspective over the next two to five years is health care premiums. Health care premiums today make up 69% of the Risk Management pie. The total premium for next year is estimated at $5,100,000. We anticipated that without significant plan design changes this number will exceed $12,000,000 in five years. The investments that we make today in wellness related programs and specifically those programs targeted at prevention, early detection, and treatment will save the City millions in budget dollars over the same time frame. What we do today will pay large financial dividends. All other financial exposures and Risk Management programs pale by comparison in their effect on our operational budget. Goodyear's Risk Management program has come a long way over the course of five years. There is an energized future ahead with financial challenges and rewards that your Risk Management team is excited to be a part of. Sincerely; Dean Coughenour/Risk Manager • ATTACHMENT 3 OSHA's Top 25 violations for 2007 Every year,OSHA compiles statistics on violations to its standards. During 2007,there were 109,639 violations to standards ranging across all industry segments under federal OSHA jurisdiction,with adjusted penalties of over$35 million. q The following table lists the top 25 most frequently violated regulations for Part 1910,General Industry.These are federal statistics al dafeeythed result of violations that occurred in states that are regulated by federal OSHA.Citations for states that operate their own occupational health programs are not included in these statistics. Top 25 General Industry violations by subparagraPh January 1,2007 through December 31,2007 Subject _ Y""•...h..:":::Mw.„" .�, �r»._"Y.:.:.:.,.::.v,. :: " " w..,._....<...�:...:...�w"..�.»..: : .".,: ..r:....:. . .. Standard 1 Total { $Initial - $Adjusted - ....."�,. Y.....",..w.,.�..:n.::.w...,"...»Y..".....:..._<.::..w:rv....:.v�....:.,..,:.:.<.Y:::._...V...:.w:.:,..Y�,.:�..:�<w.:f..».:::".».�..:wnY..w..�.,w..:.�,.»."�r,.....w:YY��:..Y violations 1 penalty penalty":^v <1910.1200(e)(1) 3 ?„272„.„_1_,$1,1,03.,3591_ 1 RHazard communication-Written program. 98 ..w.<awe.w,.<:aa....:<•w:an.,.o:wwx<.:_r.a;.w...>.w<.,Y>.•.wo:.�x�,...:<waw:<aac •:.� `' 1,576 3,216,600 u5,709 <.. c �.-».. .: 910 212 a (1 98 2 Machine guardin T es of guarding � •-� 9-...YP :Y..v:.»M:.�O.YNY.aYto�v.K:.'�'.•t.:.w.:..F.TWPY..`tLt•Yn,:Y.Mp»+�M•xM:� �„>i4Y..htlH„i%�9oN1onW.Y.<.AW'1fi»:!2�:HKY.a:•:✓Fw. ..frFH$'.�x�»et.�•c:..Y. � 3 jH � 1,141 1 406,186; 142,863 zard communication-Employer must 11910.1200(h)(1) 6 I ;provide hazard information and training 58 1 819 • ,�_.....�..:<, .�.F.<R.� 11910.23(c)(1) 841 f 2,253,9221 , 4 .I Guarding floor openings,platforms,and , runways YxMxxYFa,Y�..>Y".�, _.. �. .:.. Yxw:� 1 4 51 08 11910.212(a)(3)(€€) 786 i 1,8.2,842: 9 4 5 Machine guarding-Point of operation `g uard�.in.,. 6 ;First aid.::-..:E.,.::y.:..e.h..ww.:.ash.»Y/..Mem.w.Yer.,.g.r.eY"nncy shower 11910.151(c) 757 € 8....7:Mv2,1:..�6...._2; 290,020 l facilities not in near proximity to employees.::.»..:::. :.:r-":....v:.:...,.".:.��... ..�...,.vw:.�M.xY::..v...,w. kw~.".YwM........Y....v:":. w. ::::" 390,237 �...�� 1910.147(c)(4)(i)s 752 1,528,399i 7 Lockout/tagout-Written energy control z ;.procedures ,,:.,:3 H.F. 109,575 .a:<...;.,»x<.x,�.�,ti.� €1910.215(b)(9) 723 f 3 31,8484 8 *Abrasive wheel machinery-Exposure !adjustment/safety guards :»< <.,.a1 .xw » > �� »w� 20 44 d s.»>Y.,,e�F..�..».» ( ) 69 5 597,83+ El -.:w ng methods,: and 1910.305(b) <,.,..,", . components 1 � � x.:£:» S•6. 9 >;Electric-Wiring � € Y equipment-Cabinets,boxes/Conductors v F w" 363,355 .r�.,�Y�.�,:.�.,,�..>,:< .» .�. F.�. . .:.�,.� 1,„,.„..,_ 681 t 1,017,5 Ok 10 Lockout/tagout-Establish an energy control €1910.147(c)(1) "Y....»....':.Y.�.�..<......V.,wV....Y ....YYYi ,"�,..",��.._.Y".Y:".�w»..",.w.��.:.",....,�":µ.�.�.:"�.....�.:"..Y.w..`:.Y.,��.r.v:",», 11 Hazard communication-MSDS available46,121 for 11910.1200(g)(1) 675 108,071] leach hazardous chemical »�w.Yhv �.�,,.Y.w<Y.:µr "..Y�Yw.hw ".,Y ::: :::.::.Y�Y:...,r.,:_...:r.:.:"."..,::.»..:.:.,..::h...Y. »........ Y»Y.YY".M, • 49 Y...Y:.»� 11910.134(e)(1) 654 3 3,1 3 4 3 12 FRespiratory protection-Provide medical !evaluation prior to fit test and respirator fuse :.».::�. w,Mw� »..,�.� . Y 636 144,757 :. ..:nY:.:...:�.::...:::..w.:_..."."�...:. 9.910.134(c)(1) 467,429; 13 Respiratory protection-Establish a written :program.<,. �.<w�•",,,.n:",�,.,F�,;,��,� �.�..w; 14 Powered industrial trucks-Operator training1910.178(1)(1)(i) L 632 822'191:. :�s»,��>•�_v�-��. 2 93,2 601525,6431179,065. . .... '15 Electrical-Equipment must be installed 11910.303(b)(2) ' .according to instructions �.- w�w.. w�: r�...Y..:.».":�Y:..��::"�v.YY�,.::.:.<. ..�.Y...:.v.. ...... • �< :...�,....w..Y�..w ...�,...w."�.�::.....,�..�,..v... ..�..»N,..w:,..,..w.:.M..�,.w..f..Y:".�.�....�.w" i € 5 26 704,1631:.�. 189,206 • €1910.147(c)(6)() 16 Lockout/tagout-Annual procedure 'inspection r....:.». ..Y�.".:""�Y.::,_"�w� t�"µ w" .w" .Y..A. .:w "m...,<.":. ».....,..�.":.":...".....,. .,w;..... �.:w204,339 mission-Pulley {1910.219(d)(1) 520 560,679, �17 Mechanical power trans n t:." 2 598 � 508 � 160,250€ 4 >1910.132(d)(2) ' 18 ;Personal protective equipment-Written F ;certification of hazard assessment ij 2 37 19 SElectric-Wiring methods,components and 11910.305(b)(2) i 497 365,0401 1 50 O 4,2 ;equipment-Cabinets,boxes/Covers w .,,,x«•:.,..-.�:.,m«:«.-�>.�.»�...,..�.Y,c.�:v:�.w<-x:•,,:R..:«<.»,.>f.+,.,wwx«.:>...F.:•v.:<Y:x.,:�:F....�.<�„>Y � 494 350 3 }1.910.215(a)(4) 78> 20 !Abrasive wheel machinery-Work rests 124,051 121 181 31910.13 2(d)(1) � 491 € 3 8 7,6 2 5� .21 Personal protective equipment-Must 1 3 conduct a hazard assessment 491 66 9 22 8 1910.147(c)(7)(i) 22 3Lockout/tagout-Training and ;communication"� ».."".Y.�:. ",Y. . Y.�. �w .w �. " �»<�: �w"�ww�_ ":::,.:£�».�".�.»...�.:.. '....:. .. 148,849 `.`....:» » Y 1910.133(a)(1) 489 f 405,862: 23 Eye and face protection-Use of appropriate x +".,v.. Jeyeand face protection 154,083 11910.242(b) 481 432,58524 ompre air-Reduce to less than 30 jP.s.i. . ".:Y"..:.».:�.:.v.::.�:�::...::Y.", ��""�`"'�'"'"µ•""" '1910.13 2 a � 480 1,056,4781 359,632 25 Personal protective equipment-Provide, ( ) !use,maintain equipment in a sanitary and s £ . *reliable condition TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: May 12, 2008 TO: HONORABLE MAYOR & COUNCIL FROM: Sarah S. More, Planning and Zoning Director SUBJECT: Budget Study Session — Planning and Zoning Department EXECUTIVE SUMMARY: On May, 3, 2008, Council Member Gillaspie requested that further discussion be held on a proposal to authorize additional funding in the range of$500,000 to $800,000 for zoning code revision work. DISCUSSION: Consultingfundingin the proposed department budget has been substantially increased to accommodate draftingan environmentallysensitive lands ordinance (ESLO), code revisions in the Work Plan, and historic preservation assessments, etc. This is an increase of $255,000. Managing these three or more consultant projects is a significant task for staff. Thero osed staffingincrease, by 2.5 FTE, will facilitate accomplishment of the Work Plan as approved by p p the Town Council. Thosep ositions will be filled in August, at the earliest. It will take some time to bring new staff up to a standard level of performance in the Town. The Work Plan indicates utilization of all current andro osed staff for the next two years on the projects outlined along with our standard development p p review and zoning programs. The Work Plan indicates that staff will start working on new zoning regulations for Arroyo Grande this fall. It is anticipated the Arroyo Grande General Plan amendment will be g y part throughprocess way the and that staff could initiate the research elements of the project this year. More significant work on new zoning would commence only after, and if, the Town Council adopts the Arroyo Grande General Plan and annexes the area. The y project,timelinefor the Arroyo Grande with all its different elements, is attached. The actual drafting of PAD is proposed no sooner than June/July of 2009. I have always anticipated that this would be a a p p development of a code for a master significant work project, as the Town has expressed an interest in p pacommunity planned with sustainability elements. This would be a departure from the current code and the Arroyo Grande area could serve as a model of sustainability for other developments in the future. estimates for this project cost were in the range of $100,000. What this assumed is a cooperative Previous effort between staff and a developer/applicant, with some assistance from a consultant. This amount was in the proposed budget for next fiscal year, as it was presumed to be in the following fiscal not includedp p g year. Practical) the Town's desire to control the content of a PAD for Arroyo Grande should be balanced Y� with the understanding that a PAD would represent a rezoning. The Arizona State Land Department (ASLD) expect ect that the General Plan amendment be adopted and a PADA (preannexation development p agreement) be approved by both parties prior to any rezoning. The Town Council did direct staff to work on "Sustainability" as a project applicable to the Town overall. This project was anticipated accomplished ntici ated to be in-house, without consultants. Work would focus at the early an incentive program. Perhaps studying how the Neighborhood Development (ND) stages on developing p g LEED program, currently in pilot phase, might be implemented in Oro Valley. A comprehensive revision to the ZoningCode would be a much more challenging project, which could take years, even with consultant assistance. State law now requires a new energy element in the General Plan for TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 cities and towns over 50,000 population. The Town had previously indicated that a review and update of the General Plan would be accomplished at the 5-year point, or 2010. Any major revision to the Zoning Code p should be based on adopted General Plan elements, so it might be a logical step to amend the General Plan first and then the code in 2011. In the meantime, smaller code and policy changes can be accomplished based on the outcomes of the Arroyo Grande and Sustainability projects. CONCLUSION: in regulations, in particular for Arroyo Grande, is an identified Work Plan project and Development of new zoning g is important to the Town. Given that the Arroyo Grande General Plan amendment and PADA are not completed, it may be premature to start work on zoning for the area. Staff is prepared to work on this project in FY 09/10. Should the Town Council choose to fund this project, it should be in future budget cycles. Attachments: Arroyo Grande Tentative Timeline March 2008 — March 2010 cc: Michele Muench F:\P&Z Admin\Budget\TC addendum May 12, 2008 yr:JAL_ Sarah . Mort, Planning and oning Director 6921 Jerene Watson Assistant Town Manager orAtoRikt David Andrews, Town Manager NA..E.y Ali)/ ARROYO GRANDE TENTATIVE TIMELINE ----• °UND D March 2008 thru March 2010 PHASES TARGET DATES General Plan Amendment (GPA) March 2008 thru November 2008 Analysis and Development April 2008 Site Tour April 2008 GPA Open House 1 May 2008 P&Z Study Session June 2008 P&Z Commission 1st Public Hearing July 2008 CPA Open House 2 August 2008 P&Z Commission 2nd Public Hearing September 2008 TC Study Session October 2008 TC Public Hearing November 2008 Environmentally Sensitive Lands Ordinance (ESLO) March 2008 thru March 2009 RFP for ESLO April 2008 Consultant & Staff Analysis/Draft Ordinance October 2008 ESLO Open House November 2008 P&Z Commission Public Hearing 1 December 2008 P&Z Commission Public Hearing 2 January 2009 TC Public Hearing 1 February 2009 TC Public Hearing 2 March 2009 Pre-Annexation Development Agreement (PADA) April 2008 thru January 2009 PADA Staff Development June 2008 PADA Negotiation with ASLD September 2008 P&Z Commission Public Hearing November 2008 TC Public Hearing January 2009 Annexation April 2008 thru June 2009 *File Annexation Map — Post PADA and GPA March 2009 P&Z Commission Public Hearing April 2009 TC Public Hearing June 2009 Adoption of Original Town Zoning February 2009 thru June 2009 P&Z Commission Translation of Original County Zoning March 2009 TC Translation of Original County Zoning May 2009— September 2009 Zoning Plan Area Development (PAD) June 2009 thru March 2010 *Milestone