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HomeMy WebLinkAboutPackets - Council Packets (833) ***AMENDED 09/16/08, 11:00 A.M. **AMENDED 09/10/08, 4:00 P.M. AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION SEPTEMBER 17, 2008 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 5:30 PM CALL TO ORDER ROLL CALL EXECUTIVE SESSION AT OR AFTER 5:30 P.M. Pursuant to ARS 38-431.03A(1) Town Manager's Annual Performance Evaluation RESUME REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS —TOWN MANAGER COUNCIL REPORTS DEPARTMENT REPORTS TOWN MANAGER'S REPORT INFORMATIONAL ITEMS 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 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. PRESENTATION: Presentation of Plaque of Appreciation to Pete Bistany for his service on the Planning & Zoning Commission from April 2003 to June 2008 09/17/08 Agenda, Council Regular Session 2 *** Presentation by Amanda Jacobs, Economic Development Specialist, regarding the unveiling of the Town's new Economic Development video Presentation by Bob Oro regarding the "Healthiest Town in America" program 1. CONSENT AGENDA (Consideration and/or possible action) A. Minutes — 7/16/08; 8/13/08; 08/27/08 B. Economic Development Division Monthly Report - July/August 2008 C. Resolution No. (R)08 - 68 Approving an Intergovernmental Agreement between the Metropolitan Domestic Water Improvement District, the Flowing Wells Irrigation District, the Town of Marana and the Town of Oro Valley (the "NW Water Providers") for the NW Water Providers Central Arizona Project Water System route study and future studies D. Resolution No. (R)08 - 69 Authorizing the execution of a Grant Application by the Oro Valley Police Department to the Governor's Office of Highway Safety to purchase DUI Enforcement Equipment and for funding personnel services and related expenses E. Resolution No. (R)08 - 70 Providing Notice of Intent to establish and increase water rates fees and charges for the Oro Valley Water Utility - public hearing to be held at 7:00 p.m., November 5, 2008 F. **Appointment of James Loughney to the Planning & Zoning Commission filling the unexpired term of Ray Paolino effective September 17, 2008 to June 30, 2009 2. PUBLIC HEARING - CONSIDERATION AND POSSIBLE RECOMMENDATION TO STATE LIQUOR BOARD FOR APPROVAL OF AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR LICENSE FOR SPOTLIGHT GRILL LOCATED AT 1335 W. LAMBERT LANE, #101 3. PUBLIC HEARING - ORDINANCE NO. (0)08 - 19 AMENDING CHAPTER 6, SECTION 6-5-1 ENTITLED "SWIMMING POOL CODE" OTHERWISE KNOWN AS THE "2008 TOWN OF ORO VALLEY POOL AND SPA CODE" 4. 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 09/17/08 Agenda, Council Regular Session 3 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: 09 05 08 AMENDED AGENDA POSTED: 09 10 08 3:00 p.m. 4:15 p.m. Cp cp SECOND AMENDED AGENDA POSTED: 09/16/08 11:00 a.m. ekf 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. 09/17/08 Agenda, Council Regular Session 4 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. a Canada Hills Village 15 Homeowners Ascc &toi C/o Y Cross Management Group 8375 N. Oracle Road, Suite 150 Tucson, AZ 85704 Phone: (520) 219-4520 Fax: (520) 219-4711 Email: Paul Loomis, Mayor of the Town of Oro Valley Dear Sir, As a member of the Board of Directors of the Village 15 The Links homeowner association, we wish to alert you of an ongoing situation with your staff. Due to the outstanding cooperation of the Oro Valley staff, under your watch, the La Canada road project will be an asset to our town as well as to the residents of Village 15 The Links. During preliminary planning of this project over many months, our board members were involved with your staff. At these meetings, we voiced our concerns that would affect our 112 homeowners. Our constructive input was listened to and the project was shaped to satisfy not only Village 15, but also the overall need of Oro Valley. Engineering, funding, architectural design, and constructional details were all considered. At these meetings, the lead Oro Valley staff member was Craig Civalier, Town Engineer. His wisdom was utilized not just 100% for Oro Valley, but for the project and its long-term effectiveness to its citizens. Other Oro Valley staff members who became involved on specific details were Stan Lavelle, David Ruiz, David Parker, and David Andrews, to name a few. In overview, the cooperation between Oro Valley, and in our case Village 15 The Links, shows how government and its citizens can accomplish difficult projects. Sincerely, Harry Wells F1U6 2?' BpM12:45 TOV Rebecca Cris i :d TOV 9711 N. • • h 17r. Oro Valley, AZ 85737 August 25, 2008 Town of Oro Valley Dear Mayor, City Council Members, and City Manager: Yesterday I had the pleasure of riding my bike with friends on the newly finished multi-use trail that runs along the CDO wash from La Canada to First Avenue. What a treat it was! I just had to write and say "thank you" for providing such a wonderful avenue of enjoyment for all of us outdoor enthusiasts. It was early morning and the trail was in full use by joggers, walkers (including lots of dog walkers), cyclists (both serious and parents with children), and there was plenty of room for everyone. I was amazed by all the landscaping along the path. When the trees and plants mature, it will be even more beautiful to enjoy. I hope there are more of these multi-use trails in Oro Valley's future plans. Thank you again for all of your efforts in making our town the special place that it is! Sincerely, C Ky R. Phillips A. Fred Timmerman 1 E. Da esert Sky Road, #16 Oro Palley,AZ 85737 August 25,2008 Mayor, Council Members and Manager Town of Oro Valley 11000 N. La Canada Oro Valley,AZ 85737 Dear Mayor, Council Member and Manager, Yesterday we had the opportunity to ride on the new bike paths and across the wonderful bridges in Oro Valley. It was such a pleasure to ride on the paths versus taking the streets. We want to thank you for supporting the construction of the paths, and we encourage you to continue to support more bike paths in Oro Valley. We were pleased to see so many people taking advantage of them. Thank you so much! Best regards, 41‘ - K kg!, Kay P ''f ips A. Fred Timmerman i d • TOWN OF ORO VALLEY DEPARTMENT OF PUBLIC WORKS INTEROFFICE MEMORANDUM To: Paul Loomis, Mayor, David Andrews, Town Manager, Jerene Watson, Assistant Town Manager Cc: Mary Davis, Communications Administrator, Pat Klein, Constituent Services Coordinator From: Craig Civalier, Town Engineer. / Subject: Canyon Shadows FEMA Submittal Date: August 20, 2008 Please be advised that on July 30, 2008 the Department of Public Works submitted (Ow the technical report to FEMA that shows that the road embankment of La Canada Drive protects Canyon Shadows subdivision because it meets all the requirements to be certified as a levee. We have full expectations that FEMA will approve our report. Incorporation of this data into the new FIRMS will effectively remove Canyon Shadows from the floodplain of the Canada Del Oro Wash. I will update you when we hear back from FEMA. ,p_E Y R� o ,,. t.� 3 ..,.,c>o TOWN OF ORO VALLEY o Department of Public Works itr 11000 N. La Canada Drive 4 to- Oro Valley, Arizona 85737 A (520) 229-4800 Fax (520) 229-4899 �` ry .,- • - 4 www.townoforovalley.corn °jNDED 1g� Ms. Sally Ziolkowski Director, Mitigation Division FEMA Region IX 1111 Broadway, Suite 1200 Oakland, CA 94607-4052 July 30, 2008 Dear Ms. Ziolkowski I am writing in response to your January30, 2008 letter to the Town of Oro Valley Mayor, Paul Loomis, in regards to the draft Flood Insurance Rate Maps (FIRMs) for Pima County,Arizona and Incorporated Areas, and the impact on the homes in the Canyon Shadows subdivision. In the letter you stated that any technical data or analysis submitted prior to October 1, 2008 that impacts the subdivision status, will be incorporated into the Preliminary FIRMs. (11101, Attached is a technical study on the roadway embankment of La Canada Road in the Town of Oro Valley (attachment 1). The study shows that this roadwayembankment, which protects the Canyon Shadows subdivision on the east side, meets all the requirements in 44 CFR 65.10 to be certified as a levee. The Canyon Shadows Levee (FEMA levee object 55), which was submitted by the Pima County Regional Flood Control District (PCRFCD) as a Provisionally Accredited Levee(P.A.L.)protects the Canyon Shadows subdivision on the south side (attachment 2). The La Canada Road embankment and the CanyonShadows Sado s Levee combine to protect the Canyon Shadows Subdivision so that it should remain listed as a shaded Zone X flood zone in the draft FIRMs (attachment 3). We are requesting that this information be incorporated into the preliminary FIRMs schedule to be issued November 1, 2008. Our Town staff has also been working closely with the Pima CountyRegional Flood Control District (PCRFCD) in development of a Letter of Map Revision (LOMR) based on better information. The evaluation includes a revision of the 100 year flood flows in an approved Conditional Letter of Map Revision (CLOMR: FEMA Case No. 08- 09-0112R). One component of the LOMR is to certify this roadway embankment as a levee meeting all requirements of 44 CFR 65.10 to protect the Canyon Shadows subdivision from the Base Flood. It will also include all the information to certify the Canyon Shadows Levee (FEMA Levee Object 55). In a meeting with staff from your office at the PCRFCD on June 11, 2008 we informed personnel from FEMA Region IX and FEMA contractp ersonnel with the firms of Baker and Dewberry of this pending submittal of technical data and LOMR impacting the preliminary FIRMs for the Town of Oro Valley in Pima County Arizona. In the meeting we were informed that this LOMR and specifically the La Canada Roadway technical data would receive an expedited review to ensure this significant technical data was incorporated in the new preliminary FIRMs. Please feel free to have a member of your staff contact Mr. David Parker, Storm Water Engineer, by telephone 520-229-5058 or email dparker%cz orovall ev az.o v if you need additional information. )ncerc,1)l —/A) • Craig S valier, P.E. Town' ngineer Town of Oro Valley 3 Attachments 1. Canyon Shadows Levee Certification Report with Attachments 2. Canyon Shadows Levee P.A.L. 3. Map of Canyon Shadows subdivision Cc: Ray Lenaburg, FEMA Region IX Stephanie Routh, Dewberry Inc. Alisa Sauvageot, Michael Baker Jr., Inc. Suzanne Shields, PCRFCD Director k L U.S.Department of Homeland Security Fb 0 4 FEMA Region IX 1111 Broadway,Suite 1200 Oakland,CA 94607-4052 Y 1. FEMIA _ D St January 30, 2008 The Honorable Paul Loomis Mayor, Town of Oro Valley 11000 North La Canada Drive Oro Valley, Arizona 85737 Dear Mayor Loomis: Thank you for your letter dated Def,Trn.her. 12_ _2007: to the . Department of Homeland .Secut-ity' Federal Emergency Management Agency og y regarding the draft Flood Insurance Rate Maps p (FIRMs) for Pima County, Arizona and Incorporated Areas. You stated that approximately pp oxirnately 161 homes in the subdivision known as.Canyon Shadows will be affected byFEMA's'IA s acct editati on standards for levees. You also stated the subdivisionrevi ousl received a Letter of Map ' p y Revision (LOMR), which covered the levee currently in place, but the road known as La Canada is not a levee and therefore not eligible for the Provisionally Accredited Levee designation. Youre. quested the withdrawal of the draft maps for at least two years from September 17, 2007, to allow p1 w t_he Town of Oro Valley and the Pima County Flood Control District to necessary complete the steps p p s s ary fol ‘Imir La Canada to comply with the new accreditation standards. I a ol.ogize for the dela p v yin responding. The draft flood maps presented to thispoint are not final, they have no legal force or effect, and they will not beposted on any F.MA website. The draft maps also maynot the recognize potential flood mitigation effects of certain structures that have not been certified in accordance with the requirements of Code of Federal Regulations (CFR) Title 44— Emergency .Management and Assistance (44 CFR 65.10). I commend the Town of Oro Valley for its commitment to provide additional engineering studies for the area of La Canada. FEMA is committed to working with communities in Pima County to ensure the flood hazards depicted } epicted on the Pima County FIRM are reflective of conditions in the field. Given the specific circumstances of this study, FEMA has agreed to suspend processing of the draft maps, and delay issuance preliminary �vIs until November 1, 2008. Any data, such as the Town's technical � analysis, submitted prior to October 1, 2008, will be incorporated into the preliminary datareceived suggests � P �Y FIRM• If the receiti ed suggests significant changes to flood hazard data requiring more than four weeks for incorporation into the preliminary FIRM, FEMA maypostpone the issuance of the ' h preliminary P p minary maps. Part of the standard mapping process is a statutory 90-day appeals period following Ing the issuance of any preliminary FIRM that proposes new Base Flood Elevations. Additional engineering and � mapping work may be submitted during the appeals period. Beyond that, data that � mayrevise the map can be submitted at any time through the FEMA Letter of MapChange (LOMC)Specific g processes. sCs. information regarding these processes is available on the FEMA Flood Hazard Mapping 411w website www.ferna.gov/plan/Urevent/f1ir/en main.shtm. activities If construction are required to www.ferna.gov.ferna.gov ar Mayor Paul Loomis january 30, 2008 Page 2Ni1110 mitigate the flooding identified by the Town's technical analysis, the LOMR process would be the most appropriate method for revising the FIRM. I hope this information is helpful to you in addressing the concerns of the Town of Oro Valley. If you need additional information or assistance, please have a member of your staff contact Raymond T. Lenaburg, Risk Analysis Branch Chief, by telephone at (510) 627-7181. Sincerely, - c,(e_„-) Sally Ziolkows Director Mitigation Division SZ:ts cc: R. David Paulison, Administrator, FEMA Nancy L. Ward, Regional Administrator, FEMA Region a Raymond T. Lenaburg, Risk Analysis Branch Chief, PEINIA.Region IX ,4000 Doug Bellomo, Risk Analysis Division Director, FEMA a e ... ;..:, z;: AUG 1 9 2008 4._,-. . . .:,,,„, it:a� iqtw,���i •' ti r i�, ii'�i.ye�4 s.'Y,�'..r.:.M'�;Ke,,,;. Pr1�. `1 I r r M f.a 1.x s il'-j4n �i�.��ii��l�F,, � t`r ta;1 }S,� �F�ti a� et\`�': . �' '�'_..ortnenng, 'Plvnning,•,P jectiri'{. R to ..� ( ` ,,,;!;-,.:.;i • orf,. °..... � }.... : L August 18,2008 Mr.David Andrews Town Manager Town of Oro Valley 11000 N.La .nada Drive Oro Valley A! :•737- Dear Mr.A:.460. • Thank you for your letter of August 12, 2008 regarding two planning studies that encompass La Cholla Boulevard,the State Transportation System and Regional Circulation Needs Feasibility Study(PAG Loop Study)and the ADOT SR77 Multimodal Corridor Profile Study. You will be pleased to know that neither the PAG Loop Study nor ADOT's SR77 Multimodal Corridor Profile Study have any official standing in the region's planning efforts. Neither has been presented to Regional Council for official action of any kind. These are feasibility and need assessment analyses and do not establish,endorse or fund any corridor improvements.Although the Loop Study,for example,identified a significant need to relieve projected high future traffic volumes on Oracle Road, it also identified significant challenges to new corridor development and served as a basis to solicit public and jurisdictional comment prior to incorporation of any proposed route into final plans. The official planning document for the region is the federally mandated long-range transportation plan, VP the most recent version of which is the 2030 Regional Transportation gPlan (2030 RTP)adopted by the PAG Regional Council in June 2006.The Regional Transportation Plan is required by the federal government as a means to direct federal funds to the region and measure the impact of the projects we actually intend to construct. An update of that plan to the year 2040 will be initiated this Fall. The 2040 RTP is expected to be presented to the PAG Regional Council for adoption sometime in 2009. The process for plan development will include outreach to the public and direct participation of PAG member jurisdictions.The La Cholla Extension is not included in the currently adopted 2030 RTP document,nor has it been recommended for the 2040 update currently under development. I have placed your letter noting the Town's objections to the corridor in the files of both of the referenced planning studies. The Oro Valley Town Council's action also will be made a part of the official record presented to Regional Council for the 2040 RTP update. Your letter also mentions future actions of the RTA Board.The La Cholla extension was not a part of the RTA initiative and therefore would not fall within the RTA's area of responsibility. I am hopeful that this will satisfy your concerns. Please feel free to give me a call if I may be of further assistance. Sincer- 4t _ , 7 's, Executi Gary .Hay . • 1'rector Pima Asso cation of e• --rnments Pima Association of Governments 177 N.Church Ave,Suite 405,Tucson,AZ 85701 (520)792-1093[tel] (520)620-6981[fax] www.pagnet.org[web] O�PL�EY AR�O 9 • OVNDED 1 a Office of tile Town Manager Oro Valley Administration Building 11000 N. La Canada Drive, 85737-7016 (520) 229-4700 FAX(520)229-4724 DAVID ANDREWS Town Manager August 12, 2008 Gary Hayes, Executive Director Pima Association of Governments (PAG) 177 N. Church Ave., Ste. 405 Tucson, AZ 85701 Re: Regional Studies that Encompass La Cholla Boulevard Dear Gary: On July 16, 2008, the Oro Valley Town Council wasive g n an update on regional transportation corridor studies conducted by the state as well as Pima Association of Governments (PAG). At the conclusion, the Council voted unanimously to continue to support all facets of the regional corridor studies. However, included in the motion was a request thatg leo in the SR77 Oracleq the La Cholla Extension, as depicted Multimodal Corridor Profile Study (Exhibit 7-1 be removed maps promulgated by )� from the planning p g the PAG and the Regional Transportation Authority (RTA). The Town wishes to go on record via this communiqué to you, formally requesting action be taken to remove the La Cholla Extension from the maps. Please take whatever hatever steps are necessary for you to ensure that the PAG Regional Council and the RTA Board members are aware of this request and have the opportunity to act upon it. Enclosed are the minutes of the motion from the July16 meeting. A response letter indicating when this matter would be before the PAG Regional Council and RTA Board would appreciated. It will allow our Town Council be to know in advance of the item being before the Regional Council and RTA Board as an agendized item. Thank you for your attention to this matter. ! would ould be happy to provide any additional information that you feel would be helpful in responding to this request Sin erely, • Co.„44,14,.4...., David Andrews /cm Enclosure ,, cc: County Supervisor Ramon Valadez, PAG Chair, Regional g Council Honorable Mayor and Council Members Jerene Watson, Assistant Town Manager Craig Civalier, Town Engineer F.\Admin Assist\Town Manager\Letters\Letters 2008\PAG-La Cholla Extension Map Removal 8-12-08.doc • . • DRAFT MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION July 16, 2008 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER- 7:00 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member K.C. Carter, Council Member Bill Garner, Council Member Barry Gillaspie, Council Member Salette Latas, Council Member PLEDGE OF ALLEGIANCE Mayor Loomis led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Town Manager David Andrews reviewed the upcoming meetings and events. DEPARTMENT REPORTS Town Engineer Craig Civalier reported that all three of the pedestrian bridges at Canyon Del Oro (CDO) Linear Park have been built and will open in August 2008. Planning and Zoning Director Sarah More reported that the Planning and Zoning Commission completed the first of two public hearings regarding proposed General Plan Amendments. Ms. More stated that the meeting was well attended and the public participated readily. She encouraged future attendance and participation at these public meetings. Communications Administrator Mary Davis congratulated The Town of Oro Valley for achieving a place in Family Circle Magazine's top 10 places to raise a family. 7/16/2008 Minutes, Town Council Regular Session 2 COUNCIL REPORTS Vice Mayor Al Kunisch reported that he observed during a tour of Steam Pump Ranch that six 30-yard dumpsters worth of debris had been removed from the houses. He thanked the Parks & Recreation and Planning & Zoning departments and the Southern Arizona Homebuilder's Association (SAHBA) for their efforts. Council Member Bill Garner reported that he attended the Oro Valley Northwest Hospital's grand opening of their 4th floor Cardiac Rehabilitation Unit. TOWN MANAGER'S REPORT- No report. ORDER OF BUSINESS- There being no objections by the Council, Mayor Loomis moved items 9 and 10 forward on the agenda to follow item 3. CALL TO AUDIENCE - Doug McKee, Oro Valley resident, addressed Central Arizona Project (CAP) objectives and stated that the Town's goal should be to stabilize water levels. PRESENTATION- -Report of Naranja Town Site Education Campaign Communications Administrator Mary Davis updated the Council on the Naranja Town Site (NTS) Education Campaign. She said that the goals for the campaign were to provide information on the proposed Naranja Town Site Master Plan, the Phase 1 Component, and the Bond Election. Ms. Davis said that information handouts and an updated website would be tools to convey this information to the public. 1. CONSENT AGENDA MOTION: A motion was made by Council Member Abbott and seconded by Vice Mayor Kunisch to approve the consent agenda as presented. MOTION carried, 7-0. A. Minutes - June 18 & 25 B. Economic Development Division Monthly Report - June 2008 C. Resolution No. (R)08 - 54 Granting an Access Easement to Jesus 7/16/2008 Minutes, Town Council Regular Session 3 Francisco and Deborah Annette Bonillas, Owners of Parcel Number 219- ‘lor 49-0066 and Chapala Partners, LLC, Owner of Parcel Number 219-49- 006E (property located on La Canada Drive between Moore Road and Tangerine Road 2. PUBLIC HEARING - RESOLUTION NO. (R)08 - 55 APPROVING THE ADOPTION OF THE BUDGET OF THE TOWN OF ORO VALLEY FOR THE FISCAL YEAR 2008-2009 AND THE FIVE YEAR CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2008/2009 THROUGH 2012/2013 Finance Director Stacey Lemos reviewed the fiscal year 2008-2009 budget and the five year Capital Improvement Plan (CIP) for fiscal years 2008-2009 through 2012-2013. Ms. Lemos noted the changes to the budget as approved by Council on July 2, 2008 which totaled a reduction of $945,000 from the Tentative Budget making the final budget amount $203,121,674. Mayor Loomis opened the public hearing. The following people spoke in favor of funding the Northern Pima County Chamber of Commerce (NPCCC). They expressed concerns with the NPCCC not being notified of the discussion on funding changes and noted that the NPCCC supports local businesses. 111111, Jeff Jones, Oro Valley resident Helen Dankwerth, Oro Valley resident Jerry Hoy, Non-resident Kathy Goodwill, Oro Valley resident Ramon Gaanderse, Non-resident Barry DiSimone, Non-resident Richard Underwood, Non-resident Melanie Larson, Oro Valley resident Ed Taczanowsky, Oro Valley resident Pat Kinsman, Oro Valley resident, thanked the Council for their support of the Community Food Bank. Mary Kay Carlson, Oro Valley resident, thanked Council for the Greater Oro Valley Arts Council (GOVAC) funding. She stated that where she grew up, the town did not support the Chamber of Commerce; the Chamber supported the town. Stan LaVelle, Oro Valley resident and Town employee, asked those in the audience in support of the budget approval with a Cost of Living Adjustment (COLA) and Merit Increase to stand and be recognized. 7/16/2008 Minutes, Town Council Regular Session 4 Bruce Thomas, non-resident and Oro Valley Police Department employee and member of the Public Safety Employees Negotiation Team, spoke in favor of a COLA stating that other jurisdictions are giving market adjustments and merit increases. The following people voiced their endorsement of the funding cut to the NPCCC and applauded the Council for practicing fiscal restraint and expressed their disapproval of governments funding private organizations: Kathy Pastryk, Oro Valley resident Chris DeSimone, Oro Valley resident Bill Adler, Oro Valley resident, expressed concern over the budgeting process stating that other Town departments such as Planning & Zoning and the Water Utility were underfunded. Mr. Adler noted that the Town's process of giving employees raises is flawed. Mayor Loomis closed the public hearing. MOTION: A motion was made by Council Member Carter and seconded by Council Member Latas to adopt Resolution No. (R)08-55 adopting the Final Budget for Fiscal Year 2008/2009 and the Town of Oro Valley Capital Improvement Plan for FY 2008-09 through 2012-13. Vice Mayor Kunisch encouraged Council to examine organizations requesting funding to determine whether they were providing a service that the Town needs. Council Member Abbott clarified that her intent was to make sure that Oro Valley was competitive. Ms. Abbott stated that many communities do not fund COLAs and next year may be tough. Mayor Loomis stated that the Town has a good budget but that revenue sources were limited and a decline in the economy will mean tough times ahead. The Mayor noted he was looking forward to the Town's future projects. MOTION carried, 7-0. 3. RESOLUTION NO. (R)08 - 56 MEMORANDUM OF UNDERSTANDING BETWEEN THE PUBLIC SAFETY EMPLOYEES AND THE TOWN OF ORO VALLEY FOR THE PERIOD OF JULY 1, 2008 TO JUNE 30, 2009 Human Resources Director Sandra Abbey reported that the Public Safety Negotiating Committee and the Management Negotiating Committee have completed the process on this year's Memorandum of Understanding (MOU). Ms. Abbey recognized committee members for their work and time and reviewed 7/16/2008 Minutes, Town Council Regular Session 5 the MOU between the Public Safety employees and the Town of Oro Valley for the period of July 1, 2008 to June 30, 2009. She noted that the agreement included the following: Funding of the step plan -Funding of merit increases based on performance -A 1.5% Cost of Living Adjustment (COLA) -A list of the benefits available to Public Safety employees -A request from the Public Safety employees that the Council take a look at an additional 1.5% annual adjustment during the mid-year Budget review In response to a question from Council Member Abbott, Ms. Abbey explained that the 1.5% annual adjustment, which did not include a merit increase, would be applied to all Town employees. MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Gillaspie to approve Resolution (R)08-56 adopting the Memorandum of Understanding between Public Safety employees and the Town of Oro Valley for the period of July 1, 2008 to June 30, 2009. AMENDMENT TO THE MOTION: A motion was made by Council Member Carter and seconded by Council Member Abbott to amend the motion to exclude attachment D, the mid-year consideration of an additional 1°/0 salary adjustment itior for Town employees, from the motion. MOTION TO AMEND failed, 1-6 with Mayor Loomis, Vice Mayor Kunisch, Council Member Abbott, Council Member Garner, Council Member Gillaspie, and Council Member Latas opposed. MOTION carried, 6-1 with Council Member Carter opposed. 9. PRESENTATION ON PIMA ASSOCIATION OF GOVERNMENT (PAG) TRANSPORTATION IMPROVEMENT PROGRAM (TIP) Engineering Division Manager Jose Rodriguez presented the Regional Transportation Improvement Program Overview: -The Transportation Improvement Program (TIP) is a 5-year, federally mandated capital improvement program for transportation projects. Regional Transportation Authority (RTA) funded projects we included in the TIP. -The TIP implements the long-range 25-year Regional Transportation Plan (RTP). -The Pima Association of Governments Regional Council adopted the 5-year Regional Transportation Improvement Program (2009-2013). -Oro Valley approved TIP funding. 7/16/2008 Minutes, Town Council Regular Session 6 In response to a question from Council Member Garner, Mr. Rodriguez explained that air quality was a requirement of the TIP in order to receive federal funds. Gary Hayes, PAG Executive Director, stated that PAG was responsible by the federal designation through the air quality maintenance plan for the region and that they were in maintenance status. 10. PRESENTATION, DISCUSSION AND POSSIBLE ACTION ON REGIONAL TRANSPORTATION CORRIDOR STUDIES INCLUDING STUDIES RELATED TO THE LA CHOLLA BOULEVARD EXTENSION FROM TANGERINE ROAD TO ORACLE JUNCTION AS IDENTIFIED WITHIN BOTH THE STATE TRANSPORTATION SYSTEM AND REGIONAL CIRCULATION NEEDS FEASIBILITY STUDY (LOOP STUDY) AND THE SOUTHERN PINAL/NORTHERN PIMA CORRIDORS DEFINITION STUDY Town Engineer Craig Civalier reviewed the Regional Transportation Corridor Study, highlighting the La Cholla Boulevard Extension from Tangerine Road to Oracle Junction. Mr. Civalier stated that the Town supported these studies and worked in conjunction with the Arizona Department of Transportation (ADOT) as well as Pima County. He cited the need for the Town's involvement in transportation planning as a way to avoid devastating consequences. Mr. Civalier and Gary Hayes, Pima Association of Government (PAG) Executive Director, clarified the following facts surrounding the corridor studies: -The Loop Study was put on hold in 2006 due to issues related to the study including a number of alternative routes which needed additional work. -The Regional Transportation Plan was a 25 year plan -No funding has been identified for work on La Cholla Boulevard north of Tangerine Road -There were no alternate routes to be extended north -The number of vehicles per day commuting from Pinal County in 2030 was projected to be five times the existing traffic. Mr. Civalier stated that Interstate 10 (1-10) was being upgraded and will be widened to 3 lanes from the northern Pima County border to Casa Grande. In response to questions from Council, PAG Planning Director Andy Gunning explained that the State should be ahead of congestion problems on 1-10 after construction was finished. Mayor Loomis opened the floor for comments. The following people spoke in opposition to the extension of La Cholla Boulevard, noting such reasons as water conservation, protection of wildlife and 7/16/2008 Minutes, Town Council Regular Session 7 endangered species, and the expense of the project: Geri Ottoboni, Oro Valley resident Hector Conde, Oro Valley resident Ron Wiener, Oro Valley resident Tammy Kastre, Oro Valley resident Bill Oetting, Oro Valley resident Kathy Pastryk, Oro Valley resident Howard Richmond, Oro Valley resident Barry DiSimone, Non-resident Oro Valley resident Bill Adler stated that the focus of the study should be shifted to explore other approaches. MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Abbott to move that the Town of Oro Valley continue to support the corridor studies in all facets, but that the potentially high capacity corridor as part of the State Route 77 Oracle Road Multimodal Corridor Profile Study in exhibit 7-1 and as otherwise referred to as the La Cholla Extension, be removed from the planning maps being promulgated by PAG and the RTA. MOTION carried, 7-0. 6. PUBLIC HEARING - ORDINANCE NO. (0)08 - 13 AMENDING SECTION 16-1-5 OF CHAPTER 16, PARKS AND RECREATION OF THE ORO VALLEY TOWN CODE, REGARDING ELECTRIC-POWERED OR NON- POWERED MODEL AIRCRAFT OR GLIDERS, AND REPEALING ALL RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; AND PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER Parks and Recreation Director Ainsley Legner explained that Ordinance (0)08-13 was an amendment to the Town Code, which currently prohibits the activity of flying model airplanes in parks. Ms. Legner stated that if the amendment was approved, the Academy of Model Aeronautics (AMA) affiliated groups will be able to work with the Oro Valley Parks and Recreation and Legal departments to complete license agreements allowing them to perform this activity in the future. Discussion followed regarding details of the license agreement, hours of operation and regulation of flight times, restrictions on how high planes can fly and where in the park planes would be permitted. In response to a question from Mayor Loomis, Ms. Legner stated that the flying would be self-policed by the Sonoran Desert Flyers unless Parks and Recreation had reason to believe there was a problem. 7/16/2008 Minutes, Town Council Regular Session 8 Mayor Loomis opened the public hearing. The following people answered questions from Council Members on types of aircraft flown, how high planes were able to fly, and flight instruction. Bob Schuman, Oro Valley resident and member of Sonoran Desert Flyers Bill Oetting, Oro Valley resident and La Cholla Airpark President The following people spoke in favor of permitting the planes to fly: Chet Oldakowski, Oro Valley resident Konrad Kundig, Oro Valley resident Mayor Loomis closed the public hearing. MOTION: A motion was made by Council Member Latas and seconded by Council Member Carter to adopt Ordinance (0)08-13 amending section 16-1-5 of Chapter 16, Parks and Recreation of the Town Code with the following change to subsection L: Insert the wording "at altitudes below 200 feet above ground level" and replace "aircraft or gliders" to "aircraft" and that the hours of operation shall be 6:00 a.m. to 12:00 noon and that special events may be approved at the discretion of the Parks and Recreation Director. MOTION carried, 6-1 with Council Member Abbott opposed. Council Member Abbott stated her concerns were due to the fact that the Town did not receive input from the hospital or Davis Monthan Air Force Base. 4. PUBLIC HEARING REGARDING INCREASING THE ALTERNATIVE WATER RESOURCES DEVELOPMENT IMPACT FEES Water Utility Director Philip Saletta reviewed the proposed Alternative Water Resources Development Impact Fee (AWRDIF), the proposed draft Ordinance, and the Fee Schedule. Mayor Loomis opened the Public Hearing. Michael Guymon, Interim Executive Director of the Metropolitan Pima Alliance, stated that the Alliance worked with the Town and reached a common ground to phase-in these fees. On behalf of the Alliance, Mr. Guymon asked the Council not to rescind these fees at the September 3, 2008 Council Meeting. The following people spoke in opposition to increasing the Alternative Water Resources Development Impact Fees, noting reasons such as the hardship of our economy and challenges to the housing market and homebuilders. 7/16/2008 Minutes, Town Council Regular Session 9 Steve Solomon, Oro Valley resident Randy Agron, Oro Valley resident Thrac (Trace) Paulette, Oro Valley resident Non-resident Dick Maes asked the Town to stay with the incremental agreement that was made last year. Council Members discussed the impact fees as a way to afford growth. 5. PUBLIC HEARING REGARDING THE TOWN OF ORO VALLEY PROPOSED ESTABLISHMENT OF IMPACT FEES FOR POLICE, PARKS AND RECREATION, TRANSPORTATION, GENERAL GOVERNMENT AND LIBRARY Management Assistant Tory Schlievert presented a timeline, summary and cost index of the impact fees recommended by the TischlerBise Cost of Service Study for the following departments: Parks and Recreation, Library, Police, General Government and Transportation. Ms. Schlievert gave the tentative adoption date of these fees as September 3, 2008 and the effective date would be December 2, 2008. Vice Mayor Kunisch expressed his disapproval of the way the study was conducted. Mayor Loomis opened the Public Hearing. Oro Valley resident Martha Briggs, an advocate for the Friends of Oro Valley Public Library, stated that the services the Town offered were the reason why Family Circle Magazine chose Oro Valley as one of the top places to live. The following people spoke in opposition to the impact fees, citing that builders were burdened by the fees and the fact that residential growth pays for itself. Steve Solomon, Oro Valley resident David Godlewski, Non-resident, Southern Arizona Home Builder's Association (SAHBA) Randy Agron, Oro Valley resident Bill Adler, Oro Valley resident, expressed concerns regarding inconsistency and fairness of what existing and new customers were paying for development impact fees. 7. OV12-07-09 REQUEST FOR APPROVAL OF A DEVELOPMENT PLAN FOR THE STONE CANYON CLUBHOUSE, LOCATED ON THE STONE CANYON GOLF COURSE IN RANCHO VISTOSO 7/16/2008 Minutes, Town Council Regular Session 10 Planning and Zoning Director Sarah More presented the Stone Canyon Clubhouse Development Plan. She noted that the new clubhouse was recommended by the Development Review Board (DRB) at their May 13, 2008 meeting. Ms. More stated that the clubhouse was zoned for golf course use, met the plan policies and provided an open space trade that fit the requirements. Ms. More clarified parking lot calculations and explained the term "meaningful space" as natural, undisturbed, open space. Paul Oland, The WLB Group, representing Vistoso Partners and Stone Canyon, reviewed the site plan and noted constraints. Mr. Oland said the clubhouse building would be a great asset to the community. In response to a question from Council Member Gillaspie, Mr. Oland stated that the tallest building would be 28 feet. Discussion followed on the issue of open space, square footage and capacity of the clubhouse. MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Gillaspie to approve OV12-07-09, the applicant's request for a development plan for the Stone Canyon Clubhouse subject to the conditions in exhibit A: Development Plan: 1. Revised General Note#4 on the development plan to reflect the correct parking calculations. 2. Address all redline comments as shown within the submitted Development Plan and Drainage Report. Return the redlines with the next submittal. 3. Indicate if the existing curb which is located along the east side of the intersection of the parking lot PAAL and Hohokam Village Place is to remain or be removed on Sheet #2. If it is to remain, adjust the direction of flow indicated by the drainage arrows to show the storm water path around the curb and onto the existing cart path. 4. Clarify the Top of Curb (TC) and Finished Grade (FG) elevations at the entrance to the parking lot at CP6.3 on Sheet #2. It seems like the acronyms for these two elevations shown be reversed. Make needed changes. 5. Delete Keynote #16 on the left hand side of Sheet #2. Additionally, identify with a keynote the curb access ramp in this same general area. 6. Correct the orientation of the sight visibility triangles (SVT) as redlined on Sheet #3. The far side and near side legs have been drawn incorrectly. The near side SVT is to be placed left of the driver and the far side is to be placed on the right side of the driver. 7/16/2008 Minutes, Town Council Regular Session 11 7. Change G/4: 12" x 12" Ribbon Curb Typ. Each Side" to read "H/4: 12" x 12" Ribbon Curb Typ. Each Side" in Detail Cross-Sections A, Al, B, C, and I on Sheet #4. 8. Modify Detail 8: Sight Visibility Triangle's two columns of data on Sheet #5 so as the "NEAR SIDE" column contains the longer sight visibility triangles and the "FAR SIDE" column contains the shorter sight visibility triangles. See Comment #4 above. 9. Modify the "Proposed Project Development Boundary" line-type which is shown in the Development Plan's Legend to match what is shown on both the Figure 6 Map and the Figure 7 Map in the Drainage Report. Make this line the same on both exhibit maps. 10. Modify the Figure 6 Map and Figure 7 Map in the Drainage Report so as the most northern detention basin is labeled "BASIN A2" and the southern detention basin is labeled "BASIN Al". Basin Al is presently mislabeled on these two exhibit maps. Landscape Plan: 1. Correct the orientation of the Sight Visibility Triangles. The "Near Side" length corresponds to the driver's side and the "Far Side" length corresponds to the passenger side. The "Near Side" length of the sight visibility triangle shown in the sight visibility triangle table on Sheet #2 should be the longest length (i.e., In this case 118'). The "Near Side" and "Far Side" lengths as drawn in this table for the Roadway and P.A.A.L are not correct. Please make these corrections and correction (Major) any required on Sheet #3 through Sheet #6. Also, the triangle should be in-line with the curb lines thru each curb return. Coordinate these corrections with the civil plans as the same comment is applied to those plans as well. 2. The 5,700 square feet of turf around the clubhouse shall be watered using effluent water. with the condition that General Note 5 be amended, stating that the maximum permitted building height is 48 feet from natural grade and 34 feet from finished grade, per OV10-07-05 building height variance. MOTION carried, 7-0. 8. OV12-05-28C REQUEST FOR APPROVAL BY CANADA VISTAS, REPRESENTED BY THE WLB GROUP, OF A PROPOSED OPEN SPACE TRADE IMPACTING THE PRELIMINARY PLAT AND LANDSCAPE PLAN FOR THE "LOFTS AT VISTOSO" CONDOMINIUMS AT VISTOSO TOWN CENTER, LOCATED AT THE SOUTHEAST CORNER OF RANCHO VISTOSO BOULEVARD AND MOORE ROAD Planning and Zoning Director Sarah More reviewed the Open Space Trade Map for the Lofts at Vistoso. Ms. More stated that this was a modification to the 7/16/2008 Minutes, Town Council Regular Session 12 approved preliminary plat. In response to questions from council members, Paul Oland with WLB Group answered that both the number and the size of the units had been reduced and that the General Plan Amendment proposed to pass more medium- high density residential areas on the northern edge of the town center, toward Honey Bee Wash. MOTION: A motion was made by Vice Mayor Kunisch and seconded by Mayor Loomis to approve OV12-05-28C at the applicant's request for open space trade impacting the preliminary plat and landscape plan for the "Lofts at Vistoso" condominiums at Vistoso Town Center with the conditions in Exhibit A as follows: 1. Add the revised open space trade exhibit contained on Page 5 of the revised preliminary plat to the landscape plan. Golder Ranch Fire District 2. No parking will be permitted on Courtyard Village Way. Desert Dwellers Lane, Ancient Pueblo Lane, and the driveways to buildings 9-14, 18, and 27-28 per IFC Appendix D104.4 as amended by the Golder Ranch Fire District. Specify on the plat, as a general note, that parking will not be permitted in these areas. Public Works Department Revised Preliminary Plat 3. Address all redlined comments on the submitted plan. 4. Adjust the site grading around the buildings to meet the requirements of the 2006 International Building Code (IBC-Section 1803.3) and the Geotechnical report for this project. This comment affects Buildings 3, 18, and 24. Sheet 1: 5. The Loft's "Units 1-29" stated in the heading at the top of this sheet does not match "Units 1101 — 1104 thru 29101 -- 29104, Building 30" stated in the Title Block on Sheet #1 through Sheet #5. Make needed corrections. Sheet 2: 6. Provide a minimal longitudinal slope of 2.0% at the western side of Building #3 and the eastern side of Building #18. These swales are within 10' of the building. [OVZCR, May 2005; Chapter 27: Section 27.9: Figure 27.9-2(A)] • 7/16/2008 Minutes, Town Council Regular Session 13 7. Clarify the entrance roadway grading on Courtyard Village Way near where it intersects with Moore Road. The High Point (HP) within the vertical curve is less than the elevations of the vertical curb end points. Also, the road transitions from an inverted crown to a warped section in about 10'. Make needed changes. 8. Ensure that paved areas adjacent to buildings slope away from the buildings at a 0.5% minimum grade. A few areas within the paved driveways are too flat and need to be adjusted. See redlines. Sheet 3: 9. Provide a cross-sectional icon symbol for detail 1/4 on Ancient Pueblo Lane. 10. Provide a minimal longitudinal slope of 2.0% at the western side of Building #24. This swale is within 10' of Building #24. [OVZCR, May 2005; Chapter 27: Section 27.9: Figure 27.9-2.] 11. Change the proposed grading of the swale just south of Building # 27 and Building #28 at the southern tip of the parcel so the swale slopes to the southeast. It presently slopes opposite to what is shown on the plans. 12. Section 13/4 is shown thru Channel X9.1. However, Section 13/4 better represents Channel X9.2 which also refers to this section. Make needed corrections. 13. Modify Detail 1: Typical Building Pad Grading and Detail 2: Typical Condo Grading to match what is stated in General Comment #1 and the Geotechnical Report. Refer to the redlines. 14. Ensure that paved areas adjacent to buildings slope away from the buildings at a 0.5% minimum grade. A few areas within the paved driveways are too flat and need to be adjusted. See redlines. Sheet 4: 15. The slope of Channel X9.1 as stated in the "Table of Proposed Constructed Drainage Ways" does not match what is shown within the Preliminary Plat on Sheet #3. Make needed changes to this table. 16. Modify Detail 13 to call out appropriate slope stabilization methods for a 1:1 slope. Rip-rap over filter fabric is not adequate. Sheet 5: 7/16/2008 Minutes, Town Council Regular Session 14 17. Insert "With Filter Fabric" where noted in Detail 1: Typical Erosion Control. Drainage Report 18. At Concentration Points (CP) 10.1, the 24" diameter SRP's slope of 1.0% stated in the Table of Proposed Hydraulic Structures shown on Page #20 does not match the stated slope of 0.94% on Page #18 or on the Figure #4 Map. Make needed changes. 19. The slope of Channel X9.1 as stated within the Drainage Report does not match what is shown within the Preliminary Plat. Make needed changes to the Worksheet for the Lintel Wall Opening at CP 9.1, to the "Table of Proposed Constructed Drainage Ways" found on Page 20 of the report, and within the Figure 4 Map. Revised Landscape Plan 20. Show and ensure that there are no conflicts between the landscaping and the existing and proposed underground utilities. 21. Show and ensure that there are no conflicts between the landscaping and the proposed and existing underground drainage structures. 22. No drainage will be permitted within a drainage channel. Sheet 1: 23. The Loft's "Units 1-29" stated in the heading at the top of this sheet does not match "Units 1101 — 1104 thru 29101 — 29104, Building 30" stated in the Title Block on Sheet #1 through Sheet #7. Make needed corrections. Sheet 2: 24. Label the two (2) proposed easements shown adjacent to Building #29. 25. Proposed tree locations are shown in a rip-rap area east of Building #18. Reposition these trees if this was not the intended location. 26. Insert "See Sheet #3" at the bottom of this sheet. Sheet 3: 27. Label the two (2) existing and proposed easements located in the emergency access lane northeast of Building #28. 28. Label the two (2) proposed easements shown adjacent to Building #29. • 7/16/2008 Minutes, Town Council Regular Session 15 29. Insert "See Sheet #2" at the top of this sheet. 11. FUTURE AGENDA ITEMS Council Member Garner requested that a representative from Vestar present their plan of anticipated business that will come in to Oro Valley Marketplace. Request seconded by Council Member Latas. CALL TO AUDIENCE - No speakers ADJOURNMENT MOTION: A motion was made by Council Member Carter and seconded by Council Member Garner to adjourn at 11:41 p.m. MOTION carried, 7-0. Prepared by: law Elana Kyrala-Fisher Senior Office Assistant I hereby certify that 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 16th day of July 2008. I further certify that the meeting was duly called and held and that a quorum was present. Dated this day of , 2008. Kathryn E. Cuvelier, CMC Town Clerk A DRAFT MINUTES 1111 ORO VALLEY TOWN COUNCIL STUDY SESSION August 13, 2008 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE CALL TO ORDER — at 5:33 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Al Kunisch, Vice Mayor attended via telephone Paula Abbott, Council Member K.C. Carter, Council Member Salette Latas, Council Member Barry Gillaspie, Council Member arrived at 6:02 p.m. Bill Garner, Council Member attended via telephone 1. Presentation of the Public Works Management Study and Findings Steve Egan, consultant for The Mercer Group, presented the findings of the study. Discussion noted the following: 140, • Fleet management was recommended, though there were a variety of scenarios for management. • Having a fleet manager to oversee operations would keep costs down. • The garage would be comprised of six bays, a parts room and a few offices. • Storing parts and hiring skilled workers would incur additional costs. • Currently, most vehicles carry a warranty and are serviced by a dealership. • As the population grows to 50k, the Town will operate directly with the Federal Transportation Administration. o The Munis program and other tools will aide in the transition. • Transit staff located at a remote site would need open communications to be apprised of all that is happening in the Town and to feel appreciated. • Public Works utilizes the Permits Plus program o Efforts to add Highway Permits to the program are currently underway. o Employees need complete training and time to fully utilize the functionality of the system. Mr. Egan noted that the Public Works staff took a positive approach to implementing the suggested changes. He stated that Staff pushed to forge ahead. Assistant Town Manager Jerene Watson noted that the study was 10 months old and that Public Works and the Information Technology departments have worked A 08/13/2008 Minutes, Town Council Study Session 2 together along with a consultant on Permits Plus. She stated that the joint effort has made the program fully functional for Public Works. Town Engineer Craig Civalier discussed the next steps to implement from the study: • Work with Mr. Egan to update strategic and implementation plans • Create mission statements • Provide direction for the future Mayor Loomis requested a schedule for implementation and to determine the feasibility of fleet management. Council Member Abbott requested a list of Public Works vehicles noting the age of the vehicles, and any maintenance/warranty agreements. 2. Water Rates Analysis Water Utility Director Philip Saletta presented the pertinent elements to the Water Policy: • Self supporting with rate based revenues • Debt service coverage ration of 1.30 • No transfer of excess revenues to General Fund • Cash reserves of at least 5% of budget • Reduced or subsidized rates will be paid by General Fund • Cost of service approach o The Oro Valley Water Utility uses the American Water Works Association rate setting principles and methodology. • Water rates and charges reviewed annually • Avoid sudden or large scale shifts in rates o Minimize rate shock • Rate structure to encourage water conservation • Rates to encourage use of reclaimed water. Mr. Saletta discussed the Enterprise Operating Revenues and Revenue requirements: _ . :. ..... . ._.._._. :Sources of Revenues !Revenue Requirements Base rate `Personnel ;Commodity rate !Operations and Maintenance ,Interest income `Power costs Water Management Costs - Central Other fees and charges =Arizona Groundwater Replenishment District Groundwater Preservation Fee is transferred to the Alternative Water Debt Service Resources Development Impact Fee fund 08/13/2008 Minutes, Town Council Study Session 3 Mr. Saletta noted the following regarding the proposed Water Conservation credit/charge: • $1.00 credit for a customer using 2,000 gallons or less per month • $1.00 charge for use of 19-24k gallons • $2.00 charge for usage of 25-30k gallons • $3.00 charge for usage of 31k gallons and over. Discussion ensued regarding: • The charges would fund the credit o An approximate surplus of $10k per year could be put toward water conservation. o Mayor Loomis stated that the money should remain in the Conservation line item of the budget. Water Utility Administrator Shirley Seng presented the preliminary financial scenarios. • 16 financial scenarios • Five year revenue and expense projections • Phase in Groundwater Preservation Fee • Base rates • Commodity rates • Conservation credits/charges Ms. Seng presented the Customer Analysis: • 64% of customers use 10k gallons or less per month gino • 31% of customers use 5k gallons or less per month • 9.8% of customers use 2k gallons or less per month • An average customer uses 9k gallons per month. • Adding more tiers creates significant increases for large water uses. It was clarified that tiers 2 & 3 have neither a credit nor a charge. Council members stated that: • The rates have the propensity to rise, therefore credits should rise also. • Families not being able to achieve credits when trying to conserve based on the number of people in the home was a concern. Mayor Loomis called for a recess at 7:10 p.m. The meeting resumed at 7:17 p.m. 3. Shop Oro Valley Campaign Economic Development Specialist Amanda Jacobs stated the purpose for the campaign: • Support Oro Valley businesses and the local economy. • Retain existing businesses in Oro Valley • Increase sales tax revenues and decrease sales tax leakage to surrounding communities. 08/13/2008 Minutes, Town Council Study Session 4 Ms. Jacobs stated that the campaign would begin November 2008 and continue until November 2009. She noted the strategies as: • Target audience • Oro Valley Business Navigator • Key message and graphic elements o Make citizens aware that Town funds are derived from sales tax. o The tag line "Your community depends on it. • Partnerships: o Northern Pima County Chamber of Commerce • A place to advocate the campaign o The Explorer newspaper • Will offer a discounted rate for ads. o Local businesses are excited as it shows the Town's support of their business. It was noted that the campaign kick-off and promotion would have a total cost of $13,600 for fiscal year 08-09. Ms. Jacobs defined the measurements of success as: • An analysis of sales tax revenues pre/post campaign. • Merchant interviews • Number of visitors to the Shop Oro Valley webpage and the number of visitors to the Business Navigator ADJOURNMENT MOTION: A motion was made by Council Member Carter and seconded by Council Member Gillaspie to adjourn the meeting at 7:46 p.m. MOTION carried, 7-0. Prepared by: Christina Pickering Senior Office Specialist 08-27-08 Minutes, Council Study Session 1 MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION August 27, 2008 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE CALL TO ORDER: 5:30 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Al Kunisch, Vice Mayor (by telephone) Paula Abbott, Council Member K.C. Carter, Council Member Bill Garner, Council Member Barry Gillaspie, Council Member (arrived at 6:00 p.m.) Salette Latas, Council Member 1. Police Department Presentation and Discussion of Recruitment and Retention White Paper Management Assistant Tory Schlievert and Police Lieutenant Chris Olson gave a presentation regarding the recruitment and retention process for the Oro Valley Police Department (OVPD). Discussion followed regarding the findings in the Report which evaluates existing policies and practices and explores new avenues to enhance and maintain the Town's ability to recruit and retain qualified police officers. Highlights of the discussion included the Police Department's recruitment techniques, departmental growth, challenges to recruiting/retention such as competition among agencies, generational differences, private sector employment and recruitment resources, comparison of our attrition rate with other police departments around the nation and the importance of proper Officer development. The Report also pointed out OVPD's sound foundation for recruiting and retaining officers and that the goal of the report was to further identify alternatives to improve departmental processes. Discussion followed regarding average length of employment, recruiting incentives, the Department's Strategic Plan and the Explorer Program for high school students. 08-27-08 Minutes, Council Study Session 2 2. Administrative Procedures and Policies for Town Board and Commission Term Limits and Appointment Dates Town Clerk Kathryn Cuvelier reviewed the Council Communication regarding the Town Council's desire to re-evaluate term limits and the appointment process for Board and Commission members. Mayor Loomis opened the floor for public comment. Paul Parisi, Town resident, expressed support for eliminating term limits for Boards and Commission members so that the Town would retain experienced Board members. Bill Adler, Town resident, also expressed support for eliminating Board/Commission term limits. He suggested formalizing a process of concentrated indoctrination so that the new Board member is prepared to make a reasonable, knowledgeable decision based on town requirements. Discussion followed regarding the pros and cons of having term limits on Boards and Commissions, the political challenges of removing a Board or Commission member if there are no term limits, importance of having Board members serve long enough to obtain historical knowledge, proper training and importance of attending Citizen's Planning Institute, instituting a mentoring program, importance of having term limits, but concern with losing knowledgeable board members and, that the Board of Adjustment is unique since it is a quasi-judicial board and therefore, important to have members knowledgeable with planning and zoning issues. Discussion followed regarding the appointment process and whether the current process is working, should the Council make their own appointments striving for a diverse group of people that are a reflection of the Council, if so, unless limited by law, such as Board of Adjustment to 5 members, all other Boards could be increased to 7. If Council members make their own appointments, then Council Liaison positions would no longer be necessary. Mayor Loomis directed staff to bring back a proposal in two months including an implementation process and timeline, new appointments being filled with a one year temporary appointment date while staff puts together a package for implementation of Council-appointed representatives on Boards/Commissions, and notification shall be given to Boards and Commissions of the possible change to the appointment process. Mayor Loomis recessed the meeting at 6:50 p.m. Meeting resumed at 7:00 p.m. 08-27-08 Minutes, Council Study Session 3 3. Discussion of Community Benefit Agreements (CBA's) Planning and Zoning Director Sarah More explained the purpose of Community Benefit Agreements (CBA's) which is a mechanism for developers and property owners to come to private agreements with neighborhoods on development issues. She suggested that the Town could provide a list of certified facilitators and mediators paid for by the developer. Bill Adler, Town resident and member of the Planning & Zoning Commission presented information about Community Benefit Agreements. He explained that the current process of meeting with neighborhoods and developers could be formalized, bridging communication between neighbors, the Town and developers. He explained the importance of citizens first meeting without the applicant so they can be educated on the development review process, Zoning Code and entitlements and where effect of change can take place on the development so that they have an understanding of the process before meeting with the developer. Terry Parish, Town resident, encouraged the Council to formalize the process so that developers know upfront that the goal is to come to an agreement with neighbors and require neighbors to be educated on the development process. Town Attorney Tobin Rosen explained that these agreements are great if neighbors and developers are willing to agree to it. He pointed out that the Town cannot require the agreement if the developer meets the requirements of the Zoning Code. Discussion followed regarding: • Requiring CBA's in the Town's Zoning Code. • The difficulty in bringing neighborhood concerns together to create a win- win situation. • Agree CBA's can be used as a tool. • Role of staff is to assure the developer meets the requirements in the Zoning Code. • Role of Board and Commission members is to see that the development conforms with Town policies. • It is up to the neighbors and developers to work out a compatible use for the neighborhood. • Community Benefit Agreements should remain separate from zoning conditions. • Town still retains discretion to grant or deny rezoning and set conditions. • What effect Proposition 207 has on CBA's. 08-27-08 Minutes, Council Study Session 4 ADJOURNMENT MOTION: A motion was made by Council Member Carter and seconded by Council Member Garner to adjourn at 8:05 p.m. MOTION carried, 7-0. Prepared by: Kathryn E. Cuvelier, CMC Town Clerk TOWN OF ORO VALLEY Page 1 of 1 COUNCIL COMMUNICATION MEETING DATE: September 17,2008 TO: HONORABLE MAYOR& COUNCIL FROM: Amanda Jacobs, Economic Development Specialist SUBJECT: Economic Development Division Monthly Report SUMMARY: Due to the cancelation of the August 20, 2008 regular Town Council meeting, attached are the following reports: 1. Status report from July 1, 2008 —July 31, 2008 2. Status report from August 1St—August 31St. ATTACHMENTS: 1. Economic Development Division Monthly Report—July 2008 2. Economic Development Division Monthly Report—August 2008 (// Amanda Jacobs, omic Develo ment Specialist ...-� p p David Andrews, Town Manager 0 _ :5 C 'v a c te , O 0 a •tn 0 Cl) •- > c = ni w CI L o a4... 4-1 >% o C " w 0 co co 7,7E a w0.. O >, ia) E cu d N � 0.. — Et o IC ti .(i) 0 0 >I >i% -5 L..ow0 cp CD 0 E o 4-0> EIC v o 'aw =0 0 c co • m .C2 0 0 ri— 0 E0 ." 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Saletta, P.E., Water Utility Director SUBJECT: Resolution No. (R) 08- 68 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, THE FLOWING WELLS IRRIGATION DISTRICT, THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY (THE "NW WATER PROVIDERS") FOR THE NW WATER PROVIDERS CENTRAL ARIZONA PROJECT WATER SYSTEM ROUTE STUDY AND FUTURE STUDIES SUMMARY: In May of 2006, the Oro Valley Town Council approved a Memorandum of Understanding (MOU) with Metropolitan Water Improvement District (Metro), Flowing Wells Irrigation District and the Town of Marana to cooperate in the development of Central Arizona Project Water. This group of four water providers, including Oro Valley, is collectively referred to as the Northwest Water Providers (NW Water Providers). In paragraph 6. of the MOU it was agreed that costs for any studies will be shared among the (kw providers. The purpose of this Intergovernmental Agreement (IGA) is to specifically establish the cost sharing and technical information sharing of the NW Water Providers Central Arizona Project Water System Route Study and future studies. Westland Resources and its subcontractor Carollo Engineers, Inc. were selected to conduct this study through a Request for Qualifications process in accordance with State Law. A Selection Team consisting of staff representatives from all four of the NW Water Providers reviewed the proposals and selected Westland Resources. Metro will contract for these services and administer the contract. Metro will be reimbursed by the other NW Water Providers for their respective share. Attached is the proposed IGA which defines the study and the cost share. Oro Valley is expected to cost share at 41%. This cost share is based upon the length of pipe and the number of entities that will share on each segment of pipe. This study is the first step to more accurately define and update the costs associated with the Development of Central Arizona Project (CAP) Water. This information will also be used to determine the future environmental and technical requirements for routing and constructing the pipeline. The total cost of the Study is $130,000 and Oro Valley's cost share is expected to be $52,920. This cost share is based on the 4 entities sharing equally in the first segment of pipe. Oro Valley is the furthest east and that requires studying an additional 3 miles to the east of the shared pipeline. Oro Valley is the only entity that will benefit from that particular segment of pipeline in the Route Study. The prorated costs were based upon a cost per linear foot of the proposed pipeline in the study. Oro Valley's share is the highest because no other entity needs the additional 3 miles studied because it is not within their service lir area or at a point that could deliver to the other service areas. Marana's cost share is estimated at $21,720 because they are closest to the CAP canal. Metro's cost share is approximately $27,680 and Flowing TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 3 Wells' cost share is approximately $27,680. Both Flowing Wells and Metro are closer to the CAP canal than Oro Valley and will be sharing in the proposed pipeline that will go to the south. The Resolution also authorizes the Water Utility Director to participate in future studies with the Northwest Water Providers for Northwest Water Providers Central Arizona Water System. Future studies would include studies for technical issues, preliminary conceptual design, environmental issues, finance, business, institutional and governance issues. It is limited to studies and does not apply to cost share for any contracts for actual final design, construction or operations. Oro Valley Water Utility (OVWU) Staff will be involved in determining the prorated cost share for any future studies. The OVWU Director will approve the cost share as one of the Managers and Directors of Northwest Water Providers. The cost share will be based upon one or a combination of variables that relate to the benefits of a particular entity. These variables include flow and amount of water to be delivered, pipeline length and size, and pressure requirements. Oro Valley is furthest from the source of supply from the CAP canal and is approximately 200 feet higher in elevation than the other NW Water Providers are for the delivery of CAP Water. The procurement procedures for any future studies will be in compliance with all applicable state laws and will be reviewed by the ToWn of Oro Valley Procurement Administrator. This IGA will be discussed at the September 8th, 2008 Water Utility Commission Meeting. FISCAL IMPACT: Oro Valley's financial participation in this study is $52,920. This includes approximately $35,000 which is for studying a segment of proposed pipeline that would only benefit Oro Valley. The total cost of the study is $130,000. For any future studies the cost share will be reviewed and determined by the Oro Valley Water Utility Director and the other Managers and Directors of the Northwest Water Providers. Funds are budgeted in the amount of $350,000 in the 2008-09 Budget for this and future studies for the Central Arizona Project Water Master Planning. Any studies performed under this IGA will be within this budgeted amount. RECOMMENDATION: Staff recommends approval of Resolution No. (R) 08-68 . ATTACHMENTS: 1. Resolution No. (R) 08- 68 . 2. Intergovernmental Agreement between the Town of Oro Valley, Flowing Wells Irrigation District, the Town of Marana and the Metropolitan Domestic Water Improvement District. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 3 SUGGESTED MOTION: I move to approve Resolution No. (R) 08- 68 A Resolution of the Town Council of the Town of Oro Valley, Approving an Intergovernmental Agreement Between the Metropolitan Domestic Water Improvement District, Flowing Wells Irrigation District, the Town of Marana and the Town of Oro Valley (the "NW Water Providers) for the Northwest Water Providers Central Arizona Project Water System Route Study and Future Studies. OR I move to •Philip C. Sal-ia. P.E., Water Uti ity Director 6A,A.-td David L. Andrews, Town Manager RESOLUTION (R) 08-68 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, THE FLOWING WELLS IRRIGATION DISTRICT, THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY (THE "NW WATER PROVIDERS") FOR THE NW WATER PROVIDERS CENTRAL ARIZONA PROJECT WATER SYSTEM ROUTE STUDY AND FUTURE STUDIES WHEREAS, the Town of Oro Valley is a political subdivision of the State of Arizona vested with all associated rights, privileges and benefits and is entitled to the immunities and exemptions granted municipalities and political subdivisions under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, Metropolitan Domestic Water Improvement District (Metro), Flowing Wells Irrigation District (FWID), the Town of Marana (Marana) and the Town of Oro Valley (Oro • Valley), collectively referred to as the "NW Water Providers", entered into an Memorandum of Understanding in June 2006 to cooperate in planning for the development of renewable water Cir systems; and WHEREAS, pursuant to Arizona Revised Statutes A.R.S. § 11-952, the Town and the other NW Water Providers are authorized to enter into or renew agreements for joint and cooperative action with other public agencies; and WHEREAS, the Town and the other NW Water Providers desire to enter into an Intergovernmental Agreement to cooperate and participate in a NW Water Providers Central Arizona Project Water System Route Study and future studies; and WHEREAS, it is in the best interest of the Town and the other NW Water Providers to enter into the Intergovernmental Agreement, attached hereto as Exhibit "A" and incorporated herein by this reference, in order to take initial steps to provide an ongoing water supply for their respective areas. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the Intergovernmental Agreement between the Town of Oro Valley and the NW Water Providers, attached hereto as Exhibit "A", for the NW Water Providers Central Arizona Project Water System Route Study and future studies is hereby approved. BE IT FURTHER RESOLVED that the Mayor and Council of the Town of Oro Valley and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Intergovernmental Agreement. C:\Documents and Settings\ichaparro\Local Settings\Temporary Internet Files\OLK5\Resolution IGA-ROUTE STUDY-FINAL.doc Town of Oro Valley Attorney's Office/a/082608 PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 17th day ofSept., 2008. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Tobin Rosen, Town Attorney Date: Date: C:\Documents and Setti.ngs\ichaparro\Local Settings\Temporary Internet Fi1es\OLKS\Resolution IGA-ROUTE STU2Y-FINAL.doc Office of the Town Attorney/ca/010307 EXHIBIT A . 41 INTERGOVERNMENTAL AGREEMENT • • C'\llocuments and Settings\ichaparro\Local Settings\Temporary Internet Files\OLK51Resolution IGA-ROUTE STU3Y-FINAL.doc Office of the Town Auornev/ca/010307 INTERGOVERNMENTAL AGREEMENT BETWEEN METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, FLOWING WELLS IRRIGATION DISTRICT, THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY FOR NORTHWEST WATER PROVIDERS CENTRAL ARIZONA PROJECT WATER SYSTEM ROUTE ANALYSIS AND ADDITIONAL FUTURE STUDIES This Intergovernmental Agreement (hereinafter "the Agreement") is entered into by and between the Metropolitan Domestic Water Improvement District ("Metro"), Flowing Wells Irrigation District ("FWID"), the Town of Marana, a municipal corporation located in Pima County, Arizona ("Marana") and the Town of Oro Valley, a municipal corporation located in Pima County, Arizona ("Oro Valley"), herein collectively referred to as the "NW Water Providers". RECITALS WHEREAS, pursuant to Arizona Revised Statutes (A.R.S.) § 11-952, Metro, FWID, Marana and Oro Valley are authorized to enter into or renew agreements for joint and cooperative action with other public agencies; and WHEREAS, pursuant to A.R.S. §§ 48-909A(6), 48-1014 and 48-4462, et seq., Metro has the %or requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within and without their corporate boundaries; and WHEREAS, pursuant to A.R.S. § 48-2978, FWID has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within its corporate boundaries; and WHEREAS, pursuant to A.R.S. § 9-511, et seq., Marana and Oro Valley have the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the landowners within and without their corporate boundaries; and WHEREAS, the NW Water Providers entered into an Memorandum of Understanding in June 2006 to cooperate in planning for the development of renewable water systems, attached hereto as Exhibit"A"; and WHEREAS, the NW Water Providers entered into an Intergovernmental Agreement in January 2007 to complete a Cost Estimate Study for the NW Water Providers Central Arizona Project Water System; and WHEREAS, the NW Water Providers desire to enter into an Intergovernmental Agreement to cooperate and participate in a route analysis for the delivery system of the NW Water Providers Central Arizona Project Water System; and Lir 1 NOW THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement, and other good and valuable consideration, the NW Water Providers agree as follows: AGREEMENT 1. Project. The Project consists of a Route Analysis to be conducted by Westland Resources, Inc., which the NW Water Providers have selected from a Request for Statement of Qualifications and with which the NW Water Providers have negotiated a contract pursuant to Arizona state statutes. The Study will provide a Route Analysis for the delivery system for the Northwest Central Arizona Project Water System. The Scope of Work for the Route Analysis is attached hereto as Exhibit "A". Under this Agreement, the NW Water Providers may pursue additional studies and projects for the Northwest Central Arizona Project Water System as long as their respective budgets include funds designated for the Northwest Central Arizona Project Water System. 2. Effective Date; Term. This Agreement shall become effective upon the Parties signing the Agreement and this Agreement shall continue to be in effect until the Project is complete. 3. Costs. The cost of the Route Analysis is not to exceed One Hundred Thirty Thousand Dollars ($130,000) and shall be shared among the NW Water Providers. The cost share shall be determined appropriately and collectively by the managers and NI) directors of the NW Water Providers and shall be equitably apportioned based upon the proportionate benefits to be realized by each Provider from the respective study District shall pay Westland Resources for services and all reimbursable materials rendered. This is not anticipated to exceed One Hundred Thirty Thousand Dollars ($130,000) includes labor costs, overhead, fringe benefits, profit, other direct expenses and sub-consultant fees. Any costs in excess of$130,000 will require written approval by all participants. Metro shall submit monthly invoices to FWID, Marana and Oro Valley for Westland Resource's hours worked and any expenses related to work for the previous month, including all supporting data. Metro is subject to pay under its contract with Westland Resources a late fee of 1.5 percent per month or the maximum allowed by law, if less, on all amounts remaining unpaid starting the 31st date following the invoice date. FWID, Marana and Oro Valley shall not be responsible for and/or pay any late fees. 4. Tasks Assigned to Engineering Firm Westland Resources agrees to complete the Scope of Work, attached hereto as Exhibit «A", Nia) 2 5. Responsibilities of Metro a. Metro shall be the Project Manager for the Study which includes contracting with Westland Resources and handling all contractual and administrative functions for the contract. b. Metro shall pay its designated share of the cost of the Study. c. Metro shall pay all upfront costs for the Study and shall invoice FWID, Marana and Oro Valley for their share of the costs on a monthly basis. 6. Responsibilities of FWID, Marana and the Oro Valley a. FWID shall pay its designated share of the cost of the Study. b. Marana shall pay its designated share of the cost of the Study. c. Oro Valley shall pay its designated share of the cost of the Study. d. Each NW Water Provider's share for the Study is due thirty (30) days upon • receipt of each monthly invoice. • e. In the event FWID, Marana and/or Oro Valley have questions regarding any element of an invoice, they shall notify Metro in writing within fifteen (15) days from receipt of 'Westland Resources invoice from Metro. Metro shall effect a resolution and transmit a revised invoice to FWID, Marana and/or Oro Valley. Any amounts not in question shall be paid by FWID, Marana and/or Oro Valley in accordance with the procedure in this Section. FWID, Marana and/or Oro Valley shall pay the approved revised invoice within thirty (30) days of the revised invoice date. 7: Cost and Responsibility for Other Studies and Projects. Additional studies may also be implemented and cost shared under this IGA for the Northwest Central Arizona Project Water System if the procurement process for the consultants meets the requirements of state law and the procurement policies of the participating Providers. The NW Water Providers' Managers and Directors are authorized to participate in future studies as long as their respective budgets include funds designated for the Northwest Central Arizona Project Water System. Scope of Work and costs for any future studies will be approved by the Managers after negotiations with a selected consultant or engineering firm. The NW Water Providers' Managers are further authorized to cost share in additional studies and will determine and agree upon the appropriate cost share amounts for each study, which will be documented in a letter agreement and signed by each respective manager or director. This will only pertain to studies and not design, construction or operations. Design, construction and operations will be addressed in a future IGA approved by the respective governing Boards or Councils. 1109 3 8. Termination. Any party may terminate this Agreement for material breach of the Agreement by any other party. Prior to any termination under this paragraph, the party allegedly in default shall be given written notice by the other parties of the nature of the alleged default. The party said to be in default shall have forty-five days to cure the default. If the default is not cured within that time, the other parties may terminate this Agreement. Any such termination shall not relieve any party from liabilities or costs already incurred or obligated under this Agreement. 9. Non-assignment. No Party to this Agreement shall assign its rights under this Agreement to any other party. 10. Entire Agreement. This instrument constitutes the entire Agreement between the Parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superseded and merged herein. 11. Amendment. This Agreement may be modified, amended, altered or changed only by written agreement signed by all Parties. 12. Construction and interpretation. All provisions of this Agreement shall be construed to be consistent with the intention of the Parties as expressed in the recitals hereof. 13. Captions and headings. The headings used in this Agreement are for convenience only and are not intended to affect the meaning of any provision of this Agreement. IWO 14. Severability. In the event that any provision of this Agreement or the application thereof is declared invalid or void by statute or judicial decision, such action shall have no effect on other provisions and their application, which can be given effect without the invalid or void provision or application, and to this extent the provisions of the Agreement are severable. In the event that any provision of this Agreement is declared invalid or void, the Parties agree to meet promptly upon request of any Party to the Agreement in an attempt to reach an agreement on a substitute provision. 15. Conflict of Interest. This Agreement is subject to the provisions of A.R.S. 38-511. 16. Jurisdiction. Nothing in this Agreement shall be construed as limiting or extending legal jurisdiction of any Party. Nothing in this Agreement is intended to confer any right or remedies to any person or entity not a party to this Agreement. 17. No Third Party Beneficiaries. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or effect the legal liability of either party to the Agreement by imposing any standard of care different from the standard of care imposed by law. 18. Compliance with Laws. The Parties shall comply with all applicable federal, state and local laws, rules, regulations, standards and executive orders, without limitation to those „an) designated within this Agreement. 4 kW' 19. Governing Law. This Agreement shall be governed by Arizona law and venue shall be proper in Pima County, Arizona. 20. Anti-Discrimination. The provisions of A.R.S. § 41-1463 and Executive Order Number 99-4 issued by the Governor of the State of Arizona are incorporated by this reference as apart of this Agreement. 21. Americans with Disabilities Act. This Agreement is subject to all applicable provisions of the Americans with Disabilities Act (Public Law 101-336,42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. 22. Waiver. Waiver by any party of any breach of any term, covenant or condition herein contained shall not be deemed a waiver of any other term, covenant or condition, or any subsequent breach of the same or any other term, covenant, or condition herein contained. 23. Force Majeure. A Party shall not be in default under this Agreement if it does not fulfill any of its obligations under this Agreement because it is prevented or delayed in doing so by reason of uncontrollable forces. The term"uncontrollable forces" shall mean, for the purposes of his Agreement, any cause beyond the control of the party affected, including but not limited to failure of facilities, breakage or accident to machinery or transmission facilities, weather conditions, flood, earthquake, lightning, fire, epidemic, war, riot, civil disturbance, sabotage, strike, lockout, labor dispute, boycott, material or energy shortage, casualty loss, acts of God, or action or non-action by governmental bodies in approving or failing to act upon applications for p approvals or permits which are not due to the negligence or willful action of the parties, order of declared local, state or national emergency, which, by exercise of the due diligence and foresight, such party could not reasonably have been expected to avoid. Either party rendered unable to fulfill any obligations by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch. 24. Notification. All notices or demands upon any Party to this Agreement shall be in writing, unless other forms are designated elsewhere, and shall be delivered in person or sent by mail addressed as follows: METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT Mark R. Stratton, General Manager cc: Michael McNulty 6265 N. La Canada Drive Lewis & Roca Tucson, Arizona 85704 One S. Church Ave., #700 Tucson, Arizona 85701 4111w 5 FLOWING WELLS IRRIGATION DISTRICT David Crockett, Superintendent cc: Spencer Smith 3 901 N. Fairview DeConcini McDonald Yetwin & Lacy Tucson, Arizona 85705 2525 E. Broadway, #200 Tucson, Arizona 85716 TOWN OF MARANA Brad DeSpain, Utilities Director cc: Town Attorney 11555 W. Civic Center Drive 11555 W. Civic Center Drive Marana, Arizona 85653 Marana, Arizona 85653 TOWN OF ORO VALLEY Philip Saletta, P.E. Water Director cc: Town Attorney 11000 N. La Canada Drive 11000 N. La Canada Drive Oro Valley, Arizona 85737 Oro Valley, Arizona 85737 25. Remedies. Any Party may pursue any remedies provided by law for the breach of this Agreement. No right or remedy is intended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or in equity or by virtue of this Agreement. IN WITNESS WHEREOF, Town of Oro Valley and Town of Marana have caused this Agreement to be executed by their Mayor and Council, upon resolution of their Mayor and Council and attested to by the Clerk of the Town; Metro has caused this Agreement to be executed by it's Chair; and Flowing Wells Irrigation District has caused this Agreement to be executed by the President of the Board of Directors. METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT Dan M. Offret, Chair Date ATTEST: Date: Warren Tenney, Clerk of the Board FLOWING WELLS IRRIGATION DISTRICT 6 Date: Manuel C. Valenzuela, President Board of Directors ATTEST: Date: Cheryl Roberts, Clerk of the Board TOWN OF MARANA Ed Honea, Mayor Date ATTEST: Town Clerk Date CO, TOWN OF ORO VALLEY Paul H. Loomis, Mayor Date ATTEST: Kathryn E. Cuvelier, Town Clerk Date COP 7 ATTORNEY CERTIFICATION No) The foregoing Agreement by and between the Metropolitan Domestic Water Improvement District, Flowing Wells Irrigation District, the Town of Marana and the Town of Oro Valley has been reviewed pursuant to A.R.S. Section 11-952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Agreement. METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT Attorney for the District Date FLOWING WELLS IRRIGATION DISTRICT FWID Attorney Date TOWN OF MARANA Town Attorney Date TOWN OF ORO VALLEY Town Attorney Date *.vt) 8 4111, Exhibit A SCOPE OF PROFESSIONAL SERVICES FOR NW CAP DELIVERY SYSTEM ROUTE ANALYSIS August 2008 I- SCOPE OF PROFESSIONAL SERVICES The Consultant agrees to perform work on those Tasks identified herein on or before the date specified in the applicable Notice-to-Proceed (NTP) provided by the Metropolitan Domestic Water Improvement District (MDWID). The Tasks are described in Section E. The Consultant agrees to complete the Tasks in conformance with the schedules set forth in Section D. A. Project Overview Flowing Wells Irrigation District (Flowing Wells), Metropolitan Domestic Water Improvement District (Metro Water), Town of Marana (Marana), and Town of Oro Valley (Oro Valley) (hereafter referred to as "NW Water Providers") require Professional Engineering Services to perform a route analysis of the delivery system for the Northwest CAP Water System that would allow for the direct use of Central Arizona Project water for each Partner. The NW Water Providers will use the route analysis to select the final pipeline route for design of the delivery system. The scope of services described in Section E is a process designed to identify and facilitate selection of the best route for the Northwest CAP Water Delivery System. The NW Water Providers have provided an initial route (Figure 1) and have identified threep otential delivery points in the RFP. The delivery point locations and volumes are provided in Table 1. Table 1 ,...'H�1F ... >.x . ..........:.:.`£ Y:. `•v f•. .......r . +s.r.+.:n.. �"..n C. ..f)'�,itq ..q+.. Y C. • .,s,�+t�t1 .+, 3 s..+,,.r r ...,?..t...::•.,+.. . ;.s:f t r,.:;.,X aye � `. •i r tit Y'a?.4 Sas Aay. .;.:j Town of Marana Dove Mountain Boulevard&Tangerine Road 1,320 AF/year Metro and Flowing Wells Districts Hartman Lane and Linda Vista Boulevard 12,800 AF/year. Town of Oro Valley Shannon Road&Naranja Drive 10,000 AF/year Figure 1 9 • . ,,..._.�,:.a ..i.'''''.:•.:::'`,.T.�..;:.x;;Z•ti.,.',.....,. s: ..R�_'.4:::-L,7,.-�•,:..'..l;'',.�.'!�:jc pt,i'..1....,.�.`:,:.�.••,'u,...1.s 1,_§t.�..'',.;��.�..<".;."�:..-,.r'''_t�V`..:.--'.`,l^�'.te.t„r':..,..L„�.'..;<.' .” .�.'.•,<..... t:,.��;,'••'.L�...�+:,.•'ff., , 'r {• i ',tt ' •,,, "14, i A efi , ,: rA 2 i<v " +, .7y x'sv'3,f r , � h "��� k ef' Z}i,' ir'-s Potential Northwest CAP Water Delivery System -�,*,'''' '. s� ',,t r>1' 1, 'li b ; � 1 a'.'i.�' �y��<7 v t. s ,q, a4t i,. Na - . 0 ✓.t�i e'k '{--, Section 1 (48") 24120 Acre-Feet � • ovw� ,° ,--:;75-.44',,,,, r5�, , aiir '4,,-m",,,,'" •.: 4 • �� ' :e l : �R' . ,::`'.4 w!�. •`14',',:-:' t" i ■� Section 2A (42") 22,800 Acre-Feet - ` .r ' re,, • r6A, >r - P ,y. ,,1' -4-V1` \f' si •. % r',:',-!4,-.44:,..4'r' aA i6f-.,�4 M�/•,,, i '-m'''''' r '' ' F� , . i ,$ — -. Section 2B (36u) 12,800 Acre-Feet 4-31t,:-14:- ^�, m f N - 4r, •••••Section 3 (30") 10,000 Acre-Feet ~ � :'104) PotentialMarana(Dove 4 k .2fa' 4,1 � ��� aa ` ':',t,'.-..-:,„1:'Mountain)Delivery Point ';�� ;���} 1 } �s t s . 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'.`� y � A ;^ .i .w,.N�,4-4.4,,,.,74•;.,..-4,sWs ��.Y:94,?! ,,'� �,F_ T' '�.� • �wx{.7 ^k %+:e-•• y��� ..e"-.1,1',” r�� ,r {„¢¢;;. 7FY4”•�i.b..IiSe.: tt�" „-,a0”1' ,4x . i�,r_-. ,a?t. yy :ii',^ {,'„_t,--;�r ,',i,.. ?,y w�.E 'ii� g _r- lYb y.f{ -''+'.,;:'..P' ( 1t fi " r1'4" �Ft . ;.iS�f of114iit40ejg4-11F-1. 1l' •lt 10=4'4'4.',L0.14, ;nr?` 5wA :aa ,..•f' ; i. . „ „pyis * ,ri, bD >, •► €„�: a : j „, �',+� d'�# vrfC.i„i �,. i,,,440,1,:: l,:- „ :`1 r a ,sse. /� d .etciF ", , e1MTJe. r �','3 ( , s'r�� ' ' -r. 1 0i?, ,i`,44 ,! ,i-4';,.,':',W1-:-r.' A r.6 { 4140�,t Vry , S1♦ 'YF„�l .y['Vt.; 4!....)..45t-,04.,1 yr,X T , ��L l� fi• %r.,r`:- ` - `,,f 4-,4k., jiir�_r ,, ,,,` �Cprrt ' -:,,f:::.;,,{*� � .<. c• a eis,',' -..i.'•,,:,:: n°,',sA,',� ," Eii .', -a',�/�.}rfik 1 Potential Metro& , ...' l :'V-,,.-.'..'''-4,-,;',;',17010."'.�'la t-�sl'' ; 0YI I ' i -::-.--,;,,.'N sf - WSW,' s s, _', ' i i• ” �i t'riT' _ {',71N 1,,4,41",',..[ ,<,• F:-� .-I A.', , FlowingWells , s v TA. . ,F( ,, � �,.y„, A , .4•e' r-4-i 'qt;„..6 `*`��S�h 'ka'1 .! •if ,i,- �4,-; # 41.; is ii i��. f5.f yF.,-..„:,:-`,-..s °r y: "�'„trt ��i �M, .:♦.. 1t • �ar :�i1 Delivery Point .,.41P-4.411*� yi7 F�..:f ci1 1i• ' �E. -tn' '4,1y:4 • ji .ice►, '.r• ,♦ 't: +�Jk .4_,,,_ . ,R s.7Rti >:�twt?,,tf ! ��/, <4.4:44,..44.'f� 1,,• ayry�y5`y`'',_tir0 "^Ski;A .tat”::14-',,,i, 'n �w�:� t�`"`ff ;{7f'::t3��``r .* ';Ti.` 4, !>'4 : :3 'v, ,1,:t, j=I44'4T4wJW,' 6.1 y,! f.'"'If.'.:) + .1 C •�': 4«.qr.1y ' C I-f,„..:-,','.::,:,.,ty ■ _ +' a ' 4A*V. ,j.r 1, .`j ,->rr 'vV?fri-n :,....roffi % 4;5.,.} ian :s -,:; 'b11.,,i„ :Li-4,,\- .-ir, • .,-.,. In addition to the potential route and delivery points shown in Figure 1, additional routes will be developed by the consultant as part of the scope of work. Alternative routes will be reviewed by the NW Water Providers and one additional route will be selected for a detailed analysis. Analysis of the proposed routes will consider right-of-ways, agency requirements, utilities, Naill) hydrologic assessments, easements, environmental factors, archeological factors, legal issues, and other pertinent factors that would be deemed necessary for the successful completion of the delivery system. The project has been divided into 5 Tasks based upon an initial project scoping meeting. Projected fees for each Task are identified in Table 2 by staff type by the projected level of work effort. B. Professional Services to be Provided The Consultant will provide the professional services as detailed in Section E and listed herein by Task as follows: 1. Task 1 -Project Management and Meetings 2. Task 2—Preliminary Route Evaluation, Screening and Route Evaluation Matrix Preparation 3. Task 3 —Technical Evaluation of Alternative Routes 4. Task 4—Final Route Evaluation 5. Task 5— Supplemental Services C. Definitions 1. "Project Manager". This tem]. shall mean that person designated by the District Engineer of the Metropolitan Domestic Water Improvement District to represent the interests of Ns) MDWID during the term of this agreement and to be the primary contact person for all communications with the Consultant. 10 • (kw 2. "Project Engineer". This term shall mean thaterson designated by the Consultant and P � approved by MDWID as the primary contact person during theP erformance of this agreement. This person shall not be removed from the position as Project Engineer for the project, except with the express written consent of the MDWID. D. Administrative Provisions It shall be the Consultant's work to provide the requested services and to produce and assemble the needed documents for the effective and efficient identification and selection by the NW Water Providers of the preferred route for the Northwest CAP Water Delivery System. The formal work relationship between Consultant and MDWID shall be maintained between Consultant's Project Engineer and MDWID's Project Manager. This formal relationship shall include the passage of all written forms of correspondence, requests for information, notifications, submittals and claims for payment. 1. Availability of Applicable Information Information applicable to the work of the Consultant shall be provided by the staff of MDWID. Consultant shall make inquiries to the MDWID Project Manager to resolve, if possible, any inconsistencies or deficiencies found within the information supplied. 2. Quality Control Consultant has responsibility for the accuracy, timeliness and completeness of the work and (kw the documents it is to furnish under this contract. MDWID will review the submittals to determine if quality control procedures are being applied and if they are adequate uate and appropriate for the work presented. 3. Submittals of the Work Submittals of the work and supporting documentation thereof as provided below may be requested by MDWID to be accompanied by documentation which shows Consultant has established and is following quality control procedures. Such documentation may be in the form of copies of appropriate deliverables, lists,tables, checklists, or in the form of red-line check offs on report text and supporting drawings. Submittals to MDWID not accompanied by documentation which verifies the use of quality control procedures may be returned to Consultant if it appears to MDWID that quality control procedures are not being followed. Documentation of the application of quality control procedures may be considered to be a requisite element of each review submittal. 4. Schedule of Submittals The percentages indicated for each Submittal identified below are based on the total effort required by Consultant for the completion of the work. The periods of time at which these submittals are due are in calendar days and are firm to the extent that the due date will be extended to the next MDWID business day should the scheduled due date fall on a Saturday, Sunday or Holiday. In the event that the Consultant's services are delayed due to causes beyond the Consultant's reasonable control, including delays in the MDWID's review of Consultant's reports and/or other submittals, the Consultant's schedule will be adjusted to reflect the length of the delay. The following schedule is based on the 11 assumptions that MDWID Staff review turn-around will be accomplished in fourteen (14) calendar days. Milestone/Submittal Calendar(Business)Days to'Complete Preliminary Route Screening 28 (20) Preparation of Task 2 Route Evaluation Matrix 35 (25) Technical Memo Summarizing Task 2 Work 56 (40) Products Technical Memo Summarizing Evaluation of 70 (50) Alternative Routes(Task 3) 50% Technical Memo Summarizing Evaluation of 100(71) • Alternative Routes(Task 3) 100% Planometric Drawings Depicting Preferred 140 (100) Alignment(50%) Final Route Evaluation Technical Memo with Planometric Drawings for Preferred Alignment 180(128) (100%) TOTAL CONTRACT TIME= 180 DAYS * -after Notice to Proceed or receiving approval from the MDWID to proceed on next Milestone Throughout the duration of the contract, Consultant shall respond to MDWID's questions, concerns and requests for supplemental or supportive data or information, or clarifications or revisions to the several elements of the submittals as may be necessary to properly address and resolve MDWID's questions, concerns, and/or requests, and shall provide the required responses at no additional cost to MDWID. This provision shall apply even if an additional submittal(s) is (are) required by MDWID for Consultant to meet a Milestone, as noted above. (Typically, such a requirement by MDWID would be predicated upon Consultant failing to follow quality control procedures or failing to resolve one or more issues or questions raised by MDWID prior to delivering the next submittal). The purpose of this provision is to assure MDWID obtains a clear, usable product of the work without the requirements to amend the contract in order to obtain needed clarifications and revisions to the work product. However, should Consultant feel that the request made is for work or analysis that is beyond the original scope of this agreement, Consultant shall advise MDWID of its claim within the time period and in the manner prescribed in Article VI of this agreement. Likewise should Consultant establish that the review period for any submittal taken by MDWID is excessive and not timely; thus, leaving Consultant with insufficient time to prepare the next submittal, Consultant shall advise MDWID of its claim for a time extension as prescribed in the above section. 5. Document Preparation and Submittal Formats All technical memos shall be organized as follows: a. Table of Contents,Table and Figures; b. A section that introduces the work, its purpose and its goals; c. A section that presents the investigations performed, the standards by which the investigations were made or test performed, and the findings and results of those investigations or tests; d. A section that presents the calculations performed and the findings and results of those calculations. Nati) 12 • e. A section providing the recommended routes of the delivery system; including right of way, construction issues, wash crossings, utility conflicts, cultural and environmental, and cost considerations. f. A section that provides the special features and constraints of which to be cognizant during the subsequent work activities; and g. Appendices that contain the results and other supporting materials and documents for the project. 6. District Responsibilities The MDWID shall be obligated to perform the following functions during the execution of this Contract: a. Designate a Project Manager to direct Consultant and serve as a single point of contact for all Consultants' formal contacts with MDWID. Said Project Manager may be changed by written notification to Consultant; b. Secure the necessary reviews and approval from the NW Water Providers and MDWID Staff Reviewers, including consolidation of review comments; c. Provide the required Notices-to-Proceed without unnecessary delays; d. Provide timely payment of Consultant's invoices; e. Provide copies of any relevant, available studies, reports, or other documentation prepared by or for MDWID or other agencies which may bear on the work,unless such studies,reports or documentation have been published separately and are available publicly; ‘11111w f. Provide Consultant with all information stated to be provided Consultant under this Contract. E. Project Tasks 1. Task 1 - Project Management and Meetings Objective: To provide the management and administrative support and to facilitate collaborative communication within the project team (NW Water Providers and the WestLandlCarollo Consulting team) and successful completion of the Northwest CAP Delivery System Route Analysis. The WestLarid/Carollo team proposes to prepare and maintain a project schedule throughout the duration of the project. a. Update and maintain a project schedule b. Project Meetings (Monthly) c. Meeting Agenda and Minutes d. Team Management, including Budget and Scope Management e. Invoices and Monthly Progress Reports Deliverables: Meeting agendas and minutes, monthly invoices and project progress reports. kar 13 2. Task 2—Preliminary Route Evaluation, Screening and Route Evaluation Matrix 'gm)Preparation Objective: To identify up to 4 potentially feasible pipeline routing alternatives to the NW Water Providers defined delivery points and based upon conceptual level engineering, environmental, and planning considerations to provide a route evaluation matrix with ranking factors to select two routes for more detailed evaluation and study. a. General Environmental and Regulatory Overview b. Update Project Cost Calculator c. Prepare Evaluation Matrix considering Right-of-Ways/easements, agency requirements, utilities, environmental, etc. d. Identify 2-4 Alternative Routes and work with the NW Water Providers to select an alternative route to compare to the potential route, included in the RFQ. e. Chair workshop for NW Water Providers to discuss alternative routes and to establish alignment ranking/weighting factors. f. Use the evaluation matrix to rank the alternative routes and to select a preferred alternative route. (To be approved by the NW Water Providers) g. Technical Memorandum Deliverables: Draft and Final Preliminary Route Evaluation, Screening, and Route Evaluation Technical Memorandum. 3. Task 3 - Selected Alternative Routes Technical Evaluation and Comparisons Objective: To provide detailed routing analysis, including preliminary engineering, permitting, and cost considerations, for the two selected route alternatives identified in Task 2 and to provide a detailed matrix of evaluation factors that will facilitate the selection of a preferred route by the NW Water Providers. a. Detailed evaluation and ranking of two routes using technical, cost, and permitting factors evaluations b. Compare initial capital, operations&maintenance costs by alternative c. Identify project flexibility d. Identify construction issues, including wash crossings, utility conflicts and geotechnical features. e. Identify Right-of-Way and Easement requirements. f. Screening level review of Cultural and Environmental Impacts. g. Environmental Review: • Qualitatively rank the selected alternatives with regard to compliance with applicable NPPO ordinances. • Identify probable 404 permitting requirements and time frame for each of the selected alternatives. • Provide recommendations for specific biological or cultural resource survey needs. • Identify ADOT and ASLD permitting requirements and timelines for each of the selected alternatives. Deliverables: Selected Alternative Routes Evaluation Technical Memorandum. 14 4. Task 4—Final Route Evaluation Objective: To provide specific recommendations for future work efforts relative to the selected alignment. a. Develop planometric drawings using publically available aerial photographs and topography identifying preferred alignment(1"-lOO', 2' contours) b. Define Right-of-Way and easement acquisition requirements. c. Calculate capital and operations &maintenance costs and allocate by jurisdiction (percentage). d. Define project specific construction related issues relative to final alignment. e. Environmental Studies: • Complete Class I Cultural Resource Survey of the selected route. • Identify number and appropriate width of potentially jurisdictional water crossings. • Complete Phase I Biological Evaluation for threatened and endangered species plus those species being considered in the regional HCP preparation for selected alternative. • Review applicable local riparian regulations and evaluate pipeline impacts. f. Define route specific regulatory permitting issues. Deliverables: Technical Memorandum and planometric drawings depicting the selected route at 1 to 100 scale with 2-ft contour intervals. 5. Task 5— Supplemental Services Objective: Toprovide detailed /focused Technical Studies not foreseen in the approved scope of work that would further route selection by NW Water Providers. a. Cultural resources surveys(Class 1 or Class 3) b. Title Reports as required for easements/Right-of-Way c. Biological Evaluations and studies d. Additional Meetings and coordination with outside stakeholders and regulators with the Arizona State Land Department. e. Any additional work requested by MDWID. Deliverables: Work as requested by the NW Water Providers. 15 TOWN OF ORO VALLEY D COUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 17,2008 TO: HONORABLE MAYOR AND COUNCIL FROM: Daniel G. Sharp, Chief of Police SUBJECT: Resolution(R)08- 69 authorizing the Police Department to apply to the Governor's Office of Highway Safety for grant funds to purchase DUI Enforcement equipment and funding for personnel services and related employee expenses. SUMMARY: Funds became available through the Governor's Office of Highway Safety (G.O.H.S.) for Highway Safety Issues. All governmental agencies are encouraged to take an active part in the Arizona Highway Safety program and as such the Oro Valley Police Department wishes to apply for these funds. The Police Department's proposal to G.O.H.S. is requesting funds in the amount of$113,502 to purchase ten(10) CMI Intox 300 Preliminary Breath Test Instruments, one (1) Clinton Blood Draw Chair, fifty (50) Power Flares, and overtime for continued participation in DUI deployments throughout Pima County. Funds, if approved, will be received after 1 October 2008 (the start of the Federal Fiscal Year). This request is for permission from the Council to apply for funding and there is no guarantee that funding will be approved. FISCAL IMPACT: FY 2009/2010 budget=$113,502 ATTACHMENTS: 1. Resolution No. (R) O8-69 2. Copy of completed grant application. RECOMMENDATIONS: Acceptance is recommended. SUGGESTED MOTION: I move that Resolution No. (R) 08-69 be adopted. Daniel G. Sharp, Chie of Police thaw David L. Andrews, Town Manager RESOLUTION NO. (R) 08- 69 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING THE EXECUTION OF A GRANT APPLICATION BY THE ORO VALLEY POLICE DEPARTMENT TO THE GOVERNOR'S OFFICE OF HIGHWAY SAFETY (G.O.H.S.) TO PURCHASE DUI ENFORCEMENT EQUIPMENT AND FOR FUNDING PERSONNEL SERVICES AND RELATED EXPENSES. WHEREAS, the Town of Oro Valley is a political subdivision of the State of Arizona vested with all associated rights, privileges and benefits and is entitled to the immunities and exemptions granted municipalities and political subdivisions under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, Highway Safety Funds are used to support State and community programs to reduce deaths and injuries on the highways. Section 402 of the Highway Safety Act sets forth the minimum requirements with which each state's highway safety program must comply, and provides a minimum level of funding for local programs each fiscal year; and WHEREAS, the State of Arizona Governor's Office of Highway Safety (G.O.H.S.) is accepting grant applications for the Arizona's 2009 Highway Safety Issues plan in the form of reimbursable grants from 402 funds; and WHEREAS, the Oro Valley Police Department wishes to apply for a G.O.H.S. Grant to fund 10 CMI Intox 300 Preliminary Breath Test Instruments, a Clinton Blood Draw Chair, 50 power flares and personnel services and employee related expenses; and WHEREAS, it is in the interest of the Town of Oro Valley to apply for a G.O.H.S. Grant, attached hereto as Exhibit "A", for the purposes of furthering public safety within the boundaries of the Town of Oro Valley. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the Police Chief is hereby authorized to take steps as are necessary to complete, execute and submit the Governor's Office Highway Safety grant application documents, attached hereto as Exhibit "A", on behalf of the Town of Oro Valley. (111W \\Legal\sharefiles\Police\Grant Agreements\GOHS\Resolution 2008 doc Town of Oro Valley Attorney's Office/sb/082008 PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona,this 17Th day of Sep tembvc , 2008. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Tobin Rosen, Town Attorney Date: Date: 'god -qui) \\Legal\sharefiles\Police\Grant Agreements\GOHS\Resolution 2008 doc Town of Oro Valley Attorney's Office/sb/082008 • EXHIBIT 46A,, • • HS-2009-Oro Valley-117 Professional and Technical Personnel Project Title: Governors office of Highway Safety 2008-2009 Project Director Contact Information: Colleen Muhr Project Administrator Contact Information: Coileen Muhr HS-2009-Oro Valley-117 Synopsis of Proposal 144) Type of Proposal: Law Enforcement 410 Impaired Driver ❑ Fire Department/Medical Emergency ❑ Other ❑ Synopsis of Proposal: This proposal provides for DUI enforcement to include assisting with DUI check points, saturation patrols, and underage drinking enforcements. The Oro Valley Police Department participates in the Southern Arizona DUI Task force on deployments, along with dedicating two DUI officers to full time DUI enforcement and one night motor officer assisting with DUI enforcement. The Oro Valley Police Department is seeking additional funding for the continued participation in DUI deployments throughout Pima County and crucial equipment such as Portable Breath Test (PBT) for our patrol division. The funding would buy supplies for our new phlebotomy office, in NM) service later this year. Additionally, we would be interested in purchasing power flares for accident scenes. We have sampled them, and find them to be very effective. Our agency prides itself in providing its officers with the best safety equipment available. HS-2009-Oro Valley-117 County Served Select a County: Pima County - 019 HS-2009-Oro Valley-1'l7 Political District Served Select a Political District Served 1144 U.S. Congress: Congressional District 8 HS-2009-Oro Valley-117 Political District Served cont'd 110, Arizona Legislative District: Arizona Legislative District 26 HS-2009-Oro Valley-117 Background/Problem General Characteristics - Description of the applicant agency including, but NM) not limited to, information on population, demographics, topography, and climate. The Town of Oro Valley is approximately 35 square miles and growing. We currently have 42, 000 residents and continue to see a large expansion with our local commercial business. With this business, we have seen a marked increase in the number of people commuting to our town for employment. New commercial and retail businesses are opening at a fast pace. Construction has begun on an 850,000 square foot shopping center being built at the southwest corner of Oracle road (sr77) and Tangerine, making it the second largest mall in Pima County. This will bring an enormous population of consumers to Oro Valley daily. In our jurisdiction we have four high schools, six elementary schools, and three middle schools. We have several large hotels and resorts, and Northwest Hospital Oro Valley. HS-2009-Oro Valley-117 Background/Problem cont'd Streets and Highways - Description and listing of all roadway mileage within the agency's jurisdiction if applicable to the project for which funds are being sought. The Town of Oro Valley is a growing community in excess of 42, 000 people located Northwest of Tucson. Oro Valley is approximately 35 square miles. Currently, the Town is negotiating for an expansion that would include 45 square miles of land to the north of present town boundaries. Oro Valley is home to two urgent care facilities and a one full service hospital (the only hospital within a 10 mile radius for Northern Pima County and for southern Pinal County) . The Oracle road corridor is the main access point for many smaller communities North of Oro Valley including San Manuel, Winkleman, Catalina, Mammoth, Dudleyville and Globe. Oro Valley has over 170 miles of paved roadways, to include Oracle road with many more on the horizon. HS-2009-oro Valley-117 Background/Problem cont'd Identify the Problem or Deficiency - that the proposal intends to correct. The Oro Valley Police Department prides itself in be a vigilant enforcer of impaired drivers. To assist our officers with this goal, our agency would like to add Portable Breath Test (PBT) for our motor units, school resource officers and to our canine units. We have found these tools to be an invaluable resource in assisting with impaired driver enforcement as well as minor consuming charges. In 2006 we had a total of 198 arrest involving minors for both in possession and driving under 21 with alcohol in their system. In 2007 this number increased to 230 arrests. We are hoping that with providing additional resources to these officers that we can help with both identifying and deterring these crimes involving the youth in our community. Our agency has also committed to sending all of our new officers to HGN school and we have been very successful with this. We work closely with other local agencies in hosting alcohol work shops which allows outside agencies to come to NOI) the Oro Valley Police Department and participate in the completion of the NHTSA requirements for HGN. We have several officers who are certified HGN instructors who assist in teaching with other agencies as well. We also have researched the usage of Power Flares and the their effectiveness. We have had several officers try them on scenes and found them to be very effective. The Power Flares allow other motorists to be warned about an accident ahead, thus affording the officers a safer working environment. HS-2009-Oro Valley-117 Attempts to Solve the Problem Describe past efforts to resolve the problem, if any, and include reasons why the efforts have been either partially successful or unsuccessful. Our agency is proactive in impaired driver enforcement. We continue to strive to add as many resources to this enforcement by providing good equipment to our officers, however, our financial limitations do not allow us to be as proactive as we could be. • Providing the extra funding to participate with deployments in and around Oro Valley for DUI enforcement it is believed that we will have a greater impact on this crime. It is our hope that by providing PBT's to officers who will encounter more violators simply by their daily contact that we could be more effective in our arrests. Finally, we also know that keeping our officers as safe as possible by illuminating crime scenes (alcohol related) is a priority. The acquisition of Power Flares will enhance this exponentially. HS-2009-Oro Valley-T17 Project Objectives State the objectives of the project in terms of the goals to be reached in expanding or modifying present activities or creating new programs. Objectives should be: a) Stated in measurable terms directly related to the identified problem. b) Concise and deal with a specific item. c) Realistic, with a reasonable probability of achievement. d) Related to a specific time frame. The objective of this project is three fold. By adding support to personnel service (overtime) we can continue to participate in the Southern Arizona DUI Task Force, as well as sobriety check points. We would like to increase our involvements with check points throughout the county by 25%. We would also like to maintain having an officer on 7 nights a week enforcing DUI laws. By allowing officers who have the most contact with minors additional Preliminary Breath Test (PBT) it will have a quick resource for the enforcement of alcohol related crimes. We have scene an increase from 198 arrests of minors in 2006 to 230 arrest in 2007. Our agency NM" realizes the importance of lowering the alcohol related contact with minors and we would make it our goal to drop this by 20 %. Power flares are essential to keeping our officers visible on accident scenes. Due to the fact that we have a major state highway running through our jurisdiction with posted speeds of 50 to 55 MPH, the lighting of investigation scenes is imperative for the safety of the officers and other members of our community. We are preparing for the addition of another sub-station in Oro Valley to be completed in March 2009. With this we will be adding another phlebotomy station/DUI work station, hence the request for a phlebotomy chair. HS-2009-Oro Valley-117 Method of Procedure ED I understand that all law enforcement related projects/proposals must include an educational component as described in the method of procedure below. Estimate total time required for preparation ("gearing up") Description: Deployment of officers for DUI check points, and saturation pat Duration: 12 Months Comments: We would like to run our projects for a 12 month period. In addition we would like to focus our efforts on having the School Resource Officers educate the minors at our local high schools in reference to alcohol crimes. HS-2009-Oro Valley-1'17 Method of Procedure cont'd Explain how you propose to solve the problem and meet the objectives. Provide a description of the work to be done on the project and the method of doing the work. The description should be detailed for proper evaluation. If you do not know how you would solve the problem, say so. It may be possible to provide funds to develop a work plan designed to solve your problem. DUI TASK FORCE AND SATURATION PATROLS; With the new hours that drinking establishments are allowed to be open, our agency has taken measures to ensure that our DUI officers are on duty later to enforce the potential for an increase of impaired drivers on the roads. Our Town, as previously stated, has seen an increase of consumers in our community due to our large increase of commercial property and businesses. We monitor where and when business are receiving liquor licenses. We make every effort to introduce ourselves to the business management and have implemented a program called "Adopt a business". This is where each officer is assigned to be a liaison to multiple local businesses and determine if the management wants to participate. This allows each officer to get to know the management. This also allows the liaison officer to monitor for any increase of law enforcement related issues coming from that particular business so we can take a proactive approach with management. Additionally, establishing this relationship allowsNM) management to be comfortable working together with the police department. We continue to participate with the Southern Arizona DUI Task force as well as the fact that we have hosted two check points in our jurisdiction in the last two years. We have found them to be most effective with gaging designated drivers, as well as passing out literature regarding the effects of impaired driving. We continue to enforce zero tolerance throughout the year, and we work closely with our prosecutors office to improve our trial readiness to ensure convictions. PRELIMINARY BREATH TEST; (PBT) The Oro Valley Police Department believes in the three prong approach; Education, Enforcement and Evaluation. HS-2009-Oro Valley-117 11100, MethodProcedure continued Education occurs when our School Resource Unit educates the youth in our community about the dangers of impaired driving. By allowing the SRO's, patrolman, motor units and canine to have P.B.T. 's, they can have an immediate numerical value to show the violators which aids in investigations and is a powerful deterrent especially when it involves minors. The enforcement comes when the violators are able to see the consequences of their actions, whether it be financial repercussions or by serving jail time. The evaluation is completed by our agencies statistical analysis. This will show if we have seen a drop in our percentages of alcohol related crimes. Impaired Driving Enforcement Overtime Requirements: Overtime funding through this contract is limited to officers that at a minimum are certified in Standardized Field Sobriety test (SFST's) . 460, POWER FLARES; Currently our agency use the incendiary flares which when ignited produce a toxic cloud that poses a health hazard to the officer as well as a fire hazard. The Power Flares are reusable and can assist with DUI checkpoints, helicopter landing zones, and traffic controls. Analysis of initial investment in conjunction with a reduction in costs such as labor and risk to personnel creates a payback scenario which benefits the officer, the public and other emergency personnel. PHLEBOTOMY CHAIR; The Oro Valley Police Department employs multiple phlebotomy trained officers that draw blood from the impaired driver minutes after the investigation has started. This allows for a faster investigation and more enforcement time for HS-2009-Oro Valley-117 16 MethodProcedure continued 1NOP the DUI officer on the streets. We currently have two phlebotomy stations at our various facilities and with a new substation being built expect the immediate need for a third station. The addition of the third phlebotomy chair would enable immediate operation of the third station. Conclusion: Through the purchase of these items, and the overtime funding asked for, our agency believes that it will become even more effective in our enforcement of impaired driving and youth alcohol violations. We have seen an increase in our DUI arrests and we attribute this to our dedication to zero tolerance patrols, and also to our continued growth in our community. We believe that we can measure our goals of this grant by keeping statistical records of our arrests and to complete evaluations by our citizens on what they find effective. HS-2009-Oro Valley-117 Personnel Services III Personnel Services Amount Holiday DUI Task Force: $0 Selective Traffic Enforcement Program: $0 Other Personnel Services: $75, 000.00 Subtotal: $75, 000.00 HS-2009-Oro Valley-117 Employee Related Expenses *4011J0 Percentage of Employee Related Expenses: 30% Employee Related Expenses Amount Holiday DUI Task Force: $0 Selective Traffic Enforcement Program: $0 Other Personnel Services: $22,500.00 Subtotal: $22,500.00 HS-2009-Oro Valley-117 Professional And Outside Services 1111 Professional and Outside Services Amount 1) none $0 2) 3) 4) 5) 6) 7) Subtotal: $0 HS-2009-Oro Valley-11_7 Travel In-State NO) Travel In-State Description: n/a Quantity Unit Price Total Lodging Expenses - Nights @ $0 Per Diem Expenses - Days @ $0 Registration Fees - Persons @ $0 Subtotal: $0 HS-2009-Oro Valley-117 Travel Out-of-State 11111100, Travel Out-of-State Description: n/a Total Round Trip Airfare: Round Trip Ground Transportation: Quantity Unit Price Lodging Expenses - Nights @ $0 Per Diem Expenses - Days @ $0 Registration Fees - Persons @ $0 Subtotal: $0 [- r--1 I a) ,-1 co O liii) r O O O O O O O 0 O O O < to O 03 0 O ,--1 O ,-1 0 H 0 ,-i O O O CO ‘:t+ r- O N VI- • I d" N 0o U) {o- (n- (!)- Co Q) O O O () O O O -r1 al r-1 .r' fai 03 ,--i Un v, to 4.3 kn- vo -ri 0 0 4.3 -rl 0 O O RI .er,a2 0 r-i a 0 En b 0 lid Ell H co RI H O co CU c15 O O O .s; a, a (1) U $-1 CO a) r► U Gii a -- O O En O O U) b `Y' b• o 0o O .. r--1 H 4.JS,-I r-I a) u U ria 4.3 A Z-' H N m 4 LO Ul HS-2009-Oro Valley-117 Other Expenses Other Expenses Amount Description: 0 $0 r-1 >., O ,_,._,(0 0 0 viern o .i.) O CD O O CD CD CD O O CD O o 0 O O o <J)- (1)- ch (II- v} ur CD N 0 0 O H O ,---4CIS Q1 r- O O coZ .r. r-- o 4.) cr) • 0 •T, N OD a) {TY {I)- 0 rr0 a -r., er a) W O O O 1 44 0 CD O O p -r- i.4 Cn H d" CD w Co H in o d" 'T' {f)- 0) 4.3 v} -r1 -r1 a 0 0 V 0 RI a) a) N -rl g -ri >r 4) 4i 01 -r! O 4i O ,--1 O rd U 0 a CU ao -r, 0aNoi) . oa -r1 0 E U U b -r1 0 4.) c 0 W• • H . U) -,-01 4-) a) J.) a) E-+ U W .. - g' a' ro m a) U) 0 a) 0 0 >i -H -r1 Q 0 ro U -r1 U WA A O -0 4„� O 0 CO O 0 b H RI U r-I H Da ro a) . O 1.1 $4 0 H 0 .• w b H 3 b .. ( a�.1 H a 0 W 1 -r1 U U 4) H a a .- .P pU) fl — — — — — — — o 0 Z ..-- UH N ('rl ./4 111 lD N 00 al ,-I Ul HS-2009-Oro Valley-117 Budget Summary 111110, Summary of Budget Total Personnel Services: $75, 000.00 Employee Related Expenses: $22,500.00 Professional Outside Services: $0 Travel In-State: $0 Travel Out-of-State: $0 Materials and Supplies: $8, 001.00 Other Expenses: $0 Capital Outlay: $8, 001.00 Total Estimated Cost: $113,502. 00 1111 HS-2009-Oro Valley-117 Law Enforcement Three-Year Traffic Citation and Collision Data Summary ..rte ❑ Page does not apply Description Last Year Two Years Ago Three Years (2007) (2006) Ago (2005) Total Fatalities 2 El 3 ❑ 2 El Total Injuries 91 ❑ 104 ❑ 120 ❑ Alcohol-Related Fatalities 0 ❑ 0 ❑ 1 ❑ Alcohol-Related Injuries 9 El 5 ❑ 5 ❑ Speed-Related Fatalities 0 ❑ 0 ❑ 0 ❑ Speed-Related Injuries 2 El D Pedestrian Fatalities 1 ❑ 0 ❑ 0 ❑ Pedestrian Injuries 3 ❑ 6 ❑ 6 ❑ Bicycle Fatalities 0 ❑ 1 ❑ 0 ❑ Bicycle Injuries 7 ❑ 4 ❑ 10 ❑ Child Restraint Citations 18 ❑ 21 ❑ 38 ❑ Seat Belt Citations 517 ❑ 583 ❑ 896 ❑ Speed Citations 2864 ❑ 2937 ❑ 2897 ❑ Red Light Running Citations 215 El 159 ❑ 178 ❑ DUI Alcohol Arrests - 21 and 283 ❑ 183 ❑ 129 ❑ over DUI-Drug Arrest - 21 and over 22 ❑ 18 ❑ 20 ❑ DUI Alcohol Arrests - Under 30 El 47 ❑ 6 ❑ 21 DUI-Drug Arrest - Under 21 2 0 0 Youth Alcohol Violations - 144 ❑ 151 ❑ 113 ❑ under 21 - Title 4 Youth Alcohol Violations - 21 0 [] p and over - Title 4 Explanation of not available (N/A) stats: Unable to differitiant the charges in the computer HS-2009-Oro Valley-117 Fire and Emergency Medical Services Three-Year Collision Data Summary 0 Page does not apply Description Last Year Two Years Three Years (2007) Ago Ago (2006) (2005) Traffic Calls for Service [] Injuries ❑ LI 0 Fatalities ❑ LI 0 Average Response Time El ❑ LI Explanation of not available (N/A) stats: TOWN OF ORO VALLEY Page 1 of 2 COUNCIL COMMUNICATION MEETING DATE: September 17,2008 TO: HONORABLE MAYOR AND COUNCIL FROM: Philip C. Saletta, P.E. Water Utility Director Shirley Seng, Water Utility Administrator SUBJECT: Resolution No. (R) 08- 70 Resolution of the Mayor and Council of the Town of Oro Valley, Arizona Providing Notice of Intent to Establish and Increase Water Rates, Fees and Charges for the Oro Valley Water Utility SUMMARY: Pursuant to Arizona Revised Statute § 9-511, municipalities must adopt a Notice of Intent to Increase Water Rates prior to increasing water rates and must make a Rate Report available forublic review at least thirtyp days prior to the Public Hearing. The attached Resolution serves as the Town's Notice of Intent to Establish and Increase Water Rates, Fees and Charges for the Oro ValleyWater Utilityand . establishes a Public Hearing date for November 5, 2008 allowing the Mayor and Council an opportunity to pp y receive comments from the public and to formally consider a modification to the rates currently in effect. This Notice of Intent was originally presented to the Town Council on April 16, 2008. The Council continued this item until Staff could analyze additional financial scenarios that would address their concerns regarding possibly increasing the number of tiers in the rate structure, implementing stronger er conservation pricing and rewarding lower water users. Staff presented additional information to the kiw, Council at two subsequent Study Sessions on June 11th and August 13th. Staff has analyzed 18 different financial scenarios that encompass a wide range of options for the water p rate design. All of these scenarios have been included in Addendum No. 1 to the Water Rates Report to ensure that appropriate notice of any selected option will be provided to the public. All scenarios meet our bond covenants and financial guidelines under the Water Policies approved by Council. The advantages and disadvantages of each scenario are discussed in the Addendum. Approving the Resolution Providing Notice of Intent only initiates the process for settingrates by establishing a date for a Public Hearing and formally makes the Rate Report and Addendum available for public review. It does not modify any current rates or set any future rates. The proposed schedule is as follows: September 8, 2008 Water Utility Commission Meeting September 17, 2008 Request Approval of Resolution to file Notice of Intent October 13, 2008 Water Utility Commission Meeting October 8, 2008 Council Study Session—Discuss Water Rates November 5, 2008 Public Hearing—Request Approval of Resolution to Increase Water Rates December 6, 2008 New water rates in effect TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION MEETING DATE: September 17, 2008 FISCAL IMPACT: The adoption of Resolution No. (R) 08-70 Providing Notice of Intent to Establish and Increase Water Rates, Fees and Charges will have no financial impact. Should Council approve a future resolution to increase water rates, that increase will provide revenue sufficient to meet projected revenue requirements and debt service coverage for the Water Utility. RECOMMENDATION: Staff respectfully recommends adoption of Resolution No. (R) 08-70 Providing Notice of Intent to Increase Water Rates, Fees and Charges for the Oro Valley Water Utility with Exhibit 'A' Water Rates Analysis Report and Exhibit `B' Addendum to Water Rates Analysis Report, serving as the required Rate Report for public review and establishing a Public Hearing on the matter for November 5, 2008. ATTACHMENTS: 1. Resolution No. (R) 08- 70 Resolution of the Mayor and Council of the Town of Oro Valley, Arizona Providing Notice of Intent to Establish and Increase Water Rates, Fees and charges for the Oro Valley Water Utility. 2. Exhibit 'A' —Town of Oro Valley Water Utility Water Rates Analysis Report dated April 16, 2008. 3. Exhibit `B' —Addendum to the Water Rates Analysis Report 4. Independent Review of 2008 Internal Rate Study and Financial Plan provided by Red Oak Consulting, a division of Malcolm Pirnie, Inc. SUGGESTED MOTIONS: I move to approve Resolution No. (R) 08-70 A Resolution of the Mayor and Council of the Town of Oro Valley, Arizona Providing Notice of Intent to Establish and Increase Water Rates, Fees and Charges for the Oro Valley Water Utility and establishing a Public Hearing date for November 5, 2008. Or I move to 111 £4A' . . Shirley Seng, Wate Utility Ad nistrator g‘Air asid(76(e--- Philip C. Saletta, P.E., Water Utility Director 04,4;1 Cte14114A-n•- David Andrews, Town Manager TT F- E RESOLUTION NO. (R) 08- 7° A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, PROVIDING NOTICE OF INTENT TO ESTABLISH AND INCREASE WATER RATES, FEES AND CHARGES FOR THE ORO VALLEY WATER UTILITY WHEREAS, the Town of Oro Valley is a political subdivision of the State of Arizona vested with all associated rights, privileges and benefits and is entitled to the immunities and exemptions granted municipalities and political subdivisions under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, pursuant to ARS § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the residents within and without the Town's corporate boundaries; and WHEREAS, pursuant to ARS § 9-511, et seq., the Town finds it necessary to consider establishing and increasing water rates, fees and charges for the Oro Valley Water Utility; and WHEREAS, pursuant to ARS § 9-511, et seq., the Town is required to give a Notice of Intent at a regular Town Council meeting to establish and increase water rates, fees and charges; and WHEREAS, the Town has completed a water rates analysis report, attached hereto as Exhibit "A", and Addendum No. 1 to the analysis report, attached hereto as Exhibit "B", which supports establishing and increasing water rates, fees and charges for the Oro Valley Water Utility; and WHEREAS, not less than twenty (20) days prior to the public hearing, the Town shall cause to be published one time in a newspaper of general circulation within the Town's boundaries, a Notice of Intent showing the date,time and place of the hearing. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: 1. This Resolution serves as the Notice of Intent, which is hereby publicly given, for the Town of Oro Valley to establish and increase water rates, fees and charges. 2. A public hearing shall be held at the regular meeting of the Mayor and Council at 6:00 p.m. on November 5, 2008, in the Council Chambers of Town Hall, Town of Oro Valley, 11000 North La Canada Drive, Oro Valley, Arizona, to deliberate and vote on the proposed increases. 3. Exhibit "A", attached hereto, be made available to the public in the Office of the Town Clerk for review prior to the public hearing. \\Legal\sharefiles\Water Utiliry\Mtsc\Water Rate Increases\Water Rate lncreaset'Resolution Providing Notice of Intent to Increase Water Rates 2008 d. Oro Valley Attorney's Office/sb/082708 4. Exhibit "B", attached hereto, be made available to the public in the Office of the Town Clerk for review prior to the public hearing. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this day of , 2008. TOWN OF ORO VALLEY Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Tobin Rosen, Town Attorney Date: Date: 2 1 OIP C 10 frOU NoEo Ade de 4 Town of Oro Valley Water Utility Commission Addendum to di � Water Rates Analysis Report September 17, 2008 1 I I TABLE OF CONTENTS I I SECTION TITLE PAGE 1 Index of Appendices i IExecutive Summary 1 IIntroduction 3 I Conservation Charges 4 Scenarios R, R1 and R2 5 IScenarios S, 51 and S2 6 IScenarios K, K1 and K2 7 Scenarios L, Ll and L2 8 IScenarios M, M1 and M2 9 I Scenarios N, N1 and N2 10 Scenarios P, P1 and P2 11 IConclusion 13 I I I 101 40 INDEX OF APPENDICES a APPENDIX 1. Assumptions for all scenarios " 1-1 Enterprise Fund 1-3 Alternative Water Resources Development Impact Fee Fund 1-4 Potable Water System Development Impact Fee Fund AB 2. Scenario R, R1 and R2 2-1 Scenario R: Financial Summary de 2-3 Scenario R: Rates Schedule 2-5 Scenario R: Comparison Tables 2-11 Scenario R1: Financial Summary AM 2-13 Scenario R1: Rates Schedule 2-15 Scenario R2: Financial Summary 2-17 Scenario R2: Rates Schedule s I 3. Scenario S, 51 and S2 3-1 Scenario S: Financial Summary 3-3 Scenario S: Rates Schedule I 3-5 Scenario S: Comparison Tables 3-11 Scenario 51: Financial Summary 3-13 Scenario 51: Rates Schedule I 3-15 Scenario S2: Financial Summary 3-17 Scenario S2: Rates Schedule I 4. Scenario K, K1 and K2 4-1 Scenario K: Financial Summary 4-3 Scenario K: Rates Schedule I 4-5 Scenario K: Comparison Tables 4-11 Scenario K1: Financial Summary 4-13 Scenario K1: Rates Schedule I 4-15 Scenario K2: Financial Summary 4-17 Scenario K2: Rates Schedule IS. Scenario L, Ll and L2 5-1 Scenario L: Financial Summary 5-3 Scenario L: Rates Schedule ' 5-5 Scenario L: Comparison Tables 5-11 Scenario L1: Financial Summary 5-13 Scenario L1: Rates Schedule IS-iS Scenario L2: Financial Summary 5-17 Scenario L2: Rates Schedule I i S 6. Scenario M, M1 and M2 6-1 Scenario M: Financial Summary 6-3 Scenario M: Rates Schedule 111 6-5 Scenario M: Comparison Tables 6-11 Scenario Ml: Financial Summary 6-13 Scenario Ml: Rates Schedule 6-15 Scenario M2: Financial Summary 6-17 Scenario M2: Rates Schedule 7. Scenario N,N1 and N2 7-1 Scenario N: Financial Summary 7-3 Scenario N: Rates Schedule 7-5 Scenario N: Comparison Tables 7-11 Scenario N1: Financial Summary 1117-13 Scenario Ni: Rates Schedule 7-15 Scenario N2: Financial Summary 7-17 Scenario N2: Rates Schedule 8. Scenario P, P1 and P2 8-1 Scenario P: Financial Summary 8-3 Scenario P: Rates Schedule 8-5 Scenario P: Comparison Tables 8-11 Scenario P1: Financial Summary 8-13 Scenario P1: Rates Schedule 8-15 Scenario P2: Financial Summary 8-17 Scenario P2: Rates Schedule 1 i; ADDENDUM 1 TOWN OF ORO VALLEY ' WATER RATES ANALYSIS REPORT SUPPLEMENTAL INFORMATION SEPTEMBER 17, 2008 ' EXECUTIVE SUMMARY ' The Water Utility Commission (Commission) presented its annual Water Rates Analysis Report to the Town Council on April 16, 2008. Based on direction from the Council, Water Utility Staff prepared and analyzed additional financial scenarios that incorporated different elements suggested by the Council. These include: ➢ Reward customers who are conserving water ➢ Consider more tiers in rate design ➢ Change the range of water use within the tiers t The Water Rates Analysis Report contains the original Preferred and Alternate Financial Scenarios, proposed meter installation fee increases and the establishment of a convenience fee for processing credit card payments. This Addendum contains additional financial ' scenarios and related water rate designs and structures. All of the water rates, fees and charges contained within the Water Rates Analysis Report and the Addendum are provided for the Council's consideration and will be made available for public review as directed in ' the resolution providing notice of intent to increase and establish water rates, fees and charges for the Oro Valley Water Utility. ' Introduced in this Addendum is a new concept to establish a water conservation charge. There are two proposed designs for a water conservation charge. Whether or not this charge is implemented, it will not have a significant effect on the Utility's debt service coverage ' requirements. In each financial scenario, the policy guidelines and debt service coverage requirements were met prior to the addition of any projected revenue that would be derived from the water conservation charge. It is proposed that revenue generated from this charge ' would be used for the water conservation program. The information in this Addendum will explain the different financial scenarios and the ' related rate designs, impacts to the customers including the large water users, and conservation charges of each scenario. All policy, debt service coverage and financial ' reserve requirements are met in each scenario. Table 1 provides a basic summary of all scenarios for comparison purposes. 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Q - i - 7 a ADDENDUM TOWN OF ORO VALLEY WATER RATES ANALYSIS REPORT SUPPLEMENTAL INFORMATION SEPTEMBER 17, 2008 a INTRODUCTION In response to the Council's concerns expressed at earlier Town Council meetings and Study Sessions, the Water Utility Staff prepared a number of additional financial scenarios. Although Table 1 identifies numerous scenarios, there are actually only 9 options that are • significantly different. The remaining scenarios are identical to these with the exceptions being the proposed conservation charges that could be implemented. Two different options for a conservation charge are included in this Addendum. The concept of establishing a conservation charge is new to the Oro Valley Water Utility; however, other municipalities have already implemented such charges. Southern Arizona has been experiencing an extended drought for the last 8 to 9 years. It is imperative that our customers understand the importance of water conservation in an arid climate. In addition to the tiered water rate structure, establishing a conservation charge will strengthen the conservation message to the customers of the Oro Valley Water Utility. deMost of the financial scenarios presented in this Addendum include the addition of 1 or 2 tiers in the commodity rates and decreases in the base rates. The Utility changed its rate design from 3 tiers to 4 tiers in October 2007. Water use patterns have yet to be analyzed. It is recommended that a minimum of a one year history is available to compare to prior years in order to understand the revenue implications. Before making significant changes to the water rates and water rate structure, it is recommended that a cost-of-service study be performed. The AWWA M1 Manual, Principle of Water Rates, Fees and Charges states "The basic premise in establishing adequate rate schedules that are equitable to different customers is that the rates should reflect the cost of providing water service. A sound analysis of the adequacy of charges requires that costs be allocated among the customers commensurate with their service requirements. This approach recognizes differences in the costs of providing service to different types of customers." Significant changes to the water a rates should be implemented gradually to allow time to analyze changing revenues and avoid rate shock to the customers. Some of the scenarios create significant rate shock due to the change in the number of tiers and associated pricing within the upper tiers. For example, in Scenario M, up to a 35.7% increase is calculated for some customers depending on their meter size and water use. All assumptions used in these scenarios are identical with the exception of the actual water rate designs. Basically the assumptions are the same as those originally detailed in the Preferred and Alternate Scenarios included in the Water Rates Analysis Report dated April a -3 - 16, 2008. The exceptions include shifting of debt service costs for the future CAP water delivery system capital improvements to FY 2011-12. As a result, the projected operating and maintenance costs for the future CAP water delivery system were shifted to FY 2013-14. ,11,,,,, With the operating and maintenance costs no longer in the 5-year projections, the rate increase needed in year five of the projections is less than indicated in the Preferred and Alternate scenarios. Assumptions related to the Groundwater Preservation Fees and the Development Impact Fees are identical to the Preferred and Alternate Scenarios; therefore, the 5-year financial projections for these Funds have not been duplicated in this Addendum. The assumptions may be found in Appendix 1 pages 1-1 through 1-4. The customer analyses performed in this report reflect the calculated change in the billing amount for water used. The calculation includes the base rate, commodity rate, Groundwater Preservation Fees and the proposed conservation charge. This should be distinguished from the increased rate to the specific tiers established in each scenario. For example, a customer may experience an 18.8% increase on their bill due to their water use, the change in the number of tiers and the range of water use within each tier. The 18.8% increase does not represent the increase in the tiered rate itself. CONSERVATION CHARGES Two different options for conservation charges are proposed for the Council's consideration. It is proposed that both of the conservation charges be applied only to individually metered residential customers. Neither of the proposed conservations charges would be applied to commercial or irrigation customers. If established, it is recommended that any future increases in the conservation charge be implemented gradually. All of the new scenarios meet debt service coverage requirements and policies established by the Mayor and Town Council for the Water Utility. These policies and requirements were met prior to including any revenue generated by the proposed conservation charges. Therefore, should the Council choose to not adopt a conservation charge; there will be no significant impact to the projected revenue needed to meet the revenue requirements. Revenue generated from the proposed conservation charge would be used to fund the water conservation program. The first proposed option is a conservation charge which is a flat rate credit and charge concept and is referred to as CF in this report. Only residential customers that are individually metered would be assessed this charge. The proposed CF conservation credits and/or charges would be applied as follows: Monthly Water Use Credit/Charge 0 to 2,000 gallons $1.00 credit 19,000—24,000 gallons $1.00 charge 25,000—30,000 gallons $2.00 charge All usage greater than 30,000 gallons $3.00 charge -4- do Under the CF conservation charge, the majority of all residential customers would not be assessed this fee since their water use is between 3,000 gallons and 18,000 gallons per month. The revenue projected to be derived from the CF conservation charge is approximately $10,000 per year. The 5-year projections reflect that the revenue will be the same annually as all new customers are projected to use more than 2,000 gallons per month but less than 19,000 gallons per month based on calendar year 2007 water use patterns. Conservation charge CF rewards the lowest water users; however, it may not be the most equitable approach for a conservation fee. The second proposed option is a conservation charge which is a volumetric charge based on the amount of water used in a month and is referred to as CV in this report. The proposed d, rate is $0.04 per 1,000 gallons and would only apply to customers using greater than 6,000 gallons of water per month thus rewarding customers with low water use. The more water you use, the larger the conservation charge will be. While this fee may not have the most impact per customer, the majority of the customers will pay the fee. The revenue projected to be derived from the CV conservation charge is approximately $58,000 per year. Revenue will increase annually as new customers are connected to the water system. All of the new scenarios included in this Addendum have been adapted to include a conservation charge. For example, Scenario R does not include any conservation charge; however, Scenario R1 includes the CF conservation charge and Scenario R2 contains the CV conservation charge. This format is consistent for all scenarios. As previously stated, debt service coverage requirements and policies were met on each scenario prior to including a conservation charge. As such, should the Council decide not to adopt a conservation charge, there will be no significant change in the projected revenue A" needed to meet the revenue requirements. dis SCENARIOS R, R1 & R2 Scenario R is the most similar to the Preferred and Alternate scenarios in that the rate design includes keeping the existing 4-tier structure. Scenario R is being offered as a means of enhancing the existing conservation pricing using the existing tiered structure. One of the concerns expressed by the Council was that the Preferred and Alternate scenarios proposed "across the board" increases. In those scenarios, the base rate and all tiers in the commodity rates were increased g equally. Havin the same rate increase "across the board" would not reward low water users since they would experience the same rate increase as the larger water users. All scenarios in this Addendum propose varying increases in the commodity rates. Scenario R proposes the following changes: d. -5 - Scenario R Description Proposed Rate Increase Base Rate $13.25 to $1,060.00 0.0 % Tier1 $ 2.17 4.5 % Tier 2 $ 3.06 9.0 % eft Tier3 $ 4.10 9.0 % Tier 4 $ 5.50 10.0 % The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 2.7% increase ($0.49) in their monthly bills while residential customers using 30,000 gallons would realize a 10.3% increase ($13.15). The average residential customer using 9,000 gallons of water would realize a 6.8% increase ($2.51). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 14.7% increase in their water bill. Emphasis was placed on analyzing increases to commercial customers that require large s. volumes of water to operate their businesses. The addition of more tiers to the existing rate structure would create a greater financial impact on this customer classification. When the base rate is not increased,the commodity rates must increase in order to generate the required revenue. As with all customer classes, the more they use, the more they will pay. Scenario R proposes to maintain the existing 4-tier structure to minimize the impact to all customer classes. Scenario R includes changes in the usage allowed within each tier based on the • AWWA capacity ratios up to and including 2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario R may be found in Appendix 2 pages 2-1 through 2-10. Scenario R1 is identical to Scenario R but includes proposed conservation charge CF. The sit 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 2 pages 2-11 through 2-14. Scenario R2 is also identical to Scenario R but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 2 pages 2-15 through 2-18. `. SCENARIOS S, S1 & S2 The Town Council suggested that the Utility may want to increase the number of tiers in the existing rate structure. Scenario S proposes changing the existing 4-tier design to a 5-tier design. Other changes proposed under Scenario S are as follows: -6- Scenario S Description Proposed Rate Increase Base Rate $13.25 to $1,060.00 0.0 % Tier 1 $ 2.16 4.0 % Tier 2 $ 3.05 8.5 % Tier 3 $ 4.00 6.5 % Tier 4 $ 5.00 0.0 % Tier 5 $ 5.50 establish The financial impacts to the customers are compounded by the addition of a new tier in the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 2.6% increase ($0.47) in their monthly bills while residential customers using 30,000 gallons would realize a 25.7% •+ increase ($30.31). The average residential customer using 9,000 gallons of water would realize an 8.9% increase ($3.30). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to an 18.8% increase in their AI water bill. For commercial customers, this compares to 13.2% for the Preferred Scenario, 14.7% for Scenario R and 32.2% for Scenario M (see below). Emphasis was placed on analyzing increases to commercial customers that use large volumes of water. The addition of more tiers to the existing rate structure creates a greater financial impact on this customer classification. As with all customer classes, the more they use, the i more they will pay. Scenario S includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to al avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario S may be found in Appendix 3 pages 3-1 through 3-10. Scenario S1 is identical to Scenario S but includes proposed conservation charge CF. The 5- year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 3 pages 3-11 through 3-14. Scenario S2 is also identical to Scenario S but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 3 pages 3-15 through 3-18. SCENARIOS K, K1 & K2 Scenario K also proposes changing the existing 4-tier design to a 5-tier design. A significant difference between Scenario S and Scenario K is the proposed decrease of 7.55% to the base rates. It is recommended that the Utility perform a cost-of-service study prior to reducing any water rates. Other changes proposed under Scenario K are as follows: ap -7- ei Scenario K Description Proposed Rate Increase Base Rate $12.25 to $980.00 - 7.55 % Tier 1 $ 2.29 10.0 % Tier 2 $ 3.05 8.5 % Mb Tier 3 $ 4.12 9.5 % Tier 4 $ 5.30 6.0 % Tier 5 $ 6.25 establish The financial impacts to the customers are compounded by the addition of a new tier in the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 1.6% decrease (-$0.28) in their monthly bills while residential customers using 30,000 gallons would realize a 31.5% increase ($37.03). The average residential customer using 9,000 gallons of water would sib realize an 8.2% increase ($3.04). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 28.2% increase in their water bill. • Emphasis was placed on analyzing increases to commercial customers that use large volumes of water. When base rates are decreased, the commodity rates must increase by a higher percentage. This coupled with the addition of more tiers to the existing rate structure creates a significant financial impact on this customer classification as well as all other classifications. Scenario K includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. .5 The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario K may be found in Appendix 4 pages ar` 4-1 through 4-10. Scenario K1 is identical to Scenario K but includes proposed conservation charge CF. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 4 pages 4-11 through 4-14. Scenario K2 is also identical to Scenario K but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix endi4 pages 4-15 through 4-18. p g g ab SCENARIOS L,L1 & L2 Scenario L also proposes changing the existing 4-tier design to a 5-tier design and reducing the base rates. For Scenario L, the proposed decrease to the base rate is 15.09%. It is recommended that the Utility perform a cost-of-service study prior to reducing any water rates. Other changes proposed under Scenario L are as follows: -8- a a Scenario L �r Description Proposed Rate Increase Base Rate $11.25 to $900.05 -15.09 % Tier 1 $ 2.35 13.0 % „ Tier 2 $ 3.09 10.0 % Tier 3 $ 4.12 9.5 % Tier 4 $ 5.30 6.0 % Tier 5 $ 6.25 establish The financial impacts to the customers are compounded by the addition of a new tier in the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 10.0% decrease (-$1.16) in their monthly bills while residential customers using 30,000 gallons would realize a 31.1% increase ($36.66). The average residential customer using 9,000 gallons of water would realize a 6.9% increase ($2.55). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 28.1% increase in their water bill. Emphasis was placed on analyzing increases to commercial customers that use large volumes of water. When base rates are decreased, the commodity rates must increase by a higher percentage. This coupled with the addition of more tiers to the existing rate structure creates a significant financial impact on this customer classification as well as all other di classifications. Scenario L includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario L may be found in Appendix 5 pages 5-1 through 5-10. Scenario L1 is identical to Scenario L but includes proposed conservation charge CF. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 5 pages 5-11 through 5-14. Scenario L2 is also identical to Scenario L but includes proposed conservation charge CV. de The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 5 pages 5-15 through 5-18. a SCENARIOS M, M1 & M2 Scenario M proposes changing the existing 4-tier design to a 6-tier design with no increase or reduction in the base rates. The addition of two new tiers is not recommended because of the significant impact to the customers. Other changes proposed under Scenario M are as follows: -9- Scenario M Description Proposed Rate Increase Base Rate $13.25 to $1060.00 0.0 % Tier 1 $ 2.16 4.0 % Tier2 $ 3.05 8.5 % Tier 3 $ 4.12 9.5 % Tier 4 $ 5.50 10.0 % Tier 5 $ 6.50 establish Tier 6 $ 7.50 establish The financial impacts to the customers are compounded by the addition of two new tiers in ro the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 2.6% increase ($0.47) in their monthly bills while residential customers using 30,000 gallons would realize •• a 34.0% increase ($39.99). The average residential customer using 9,000 gallons of water would realize an 8.9% increase ($3.30). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 32.2% increase in their water bill. Emphasis was placed on analyzing commercial customers that use large volumes of water. The addition of 2 more tiers to the existing rate structure has a substantial impact on this customer classification. As with all customer classes, the more they use, the more they will pay. Scenario M includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario M may be found in Appendix 6 pages "' 6-1 through 6-10. Scenario M1 is identical to Scenario M but includes proposed conservation charge CF. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 6 pages 6-11 through 6-14. Scenario M2 is also identical to Scenario M but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 6 pages 6-15 through 6-18. SCENARIOS N,N1 & N2 Scenario N also proposes changing the existing 4-tier design to a 6-tier design. A significant difference is the proposed decrease in the base rates. For Scenario N, the proposed decrease to the base rate is 7.55%. It is recommended that the Utility perform a cost-of-service study prior to reducing any water rates. Other changes proposed under Scenario N are as follows: .s - 10- Scenario N Description Proposed Rate Increase Base Rate $12.25 to $980.00 - 7.55 % Tier 1 $ 2.29 10.0 % Tier2 $ 3.05 8.5 % Tier 3 $ 4.12 9.5 % Tier 4 $ 5.30 6.0 % Tier 5 $ 6.50 establish Tier 6 $ 7.50 establish d, The financial impacts to the customers are compounded by the addition of two new tiers in the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 1.6% decrease (-$0.28) in their monthly bills while residential customers using 30,000 gallons would realize a 32.7% increase ($38.53). The average residential customer using 9,000 gallons of water would realize an 8.2% increase ($3.04). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 31.9% increase in their water bill. Emphasis was placed on analyzing increases to commercial customers that use large volumes of water. When base rates are decreased, the commodity rates must increase by a higher percentage. This coupled with the addition of two more tiers to the existing rate structure creates a significant financial impact on this customer classification as well as all other classifications. Scenario N includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario N may be found in Appendix 7 pages 7-1 through 7-10. Scenario N1 is identical to Scenario N but includes proposed conservation charge CF. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 7 pages 7-11 through 7-14. Scenario N2 is also identical to Scenario N but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 7 pages 7-15 through 7-18. SCENARIOS P, P1 & P2 Scenario P also proposes changing the existing 4-tier design to a 6-tier design but includes a larger decrease in the base rates. For Scenario P, the proposed decrease to the base rate is 15.09%. It is recommended that the Utility perform a cost-of-service study prior to reducing any water rates. Other changes proposed under Scenario P are as follows: _ 11 _ 116, Scenario P Description Proposed Rate Increase 111 Base Rate $11.25 to $900.05 - 15.09 % Tier 1 $ 2.35 13.0 % Tier 2 $ 3.09 10.0 % Tier 3 $ 4.12 9.5 % Tier 4 $ 5.30 6.0 % Tier 5 $ 6.50 establish Ea Tier 6 $ 7.50 establish The financial impacts to the customers are compounded by the addition of two new tiers in the rate design. The impact to the customers would vary depending on the volume of water used. Residential customers using 2,000 gallons of water would realize a 6.4% decrease (-$1.16) in their monthly bills while residential customers using 30,000 gallons would realize a 32.4% increase ($38.16). The average residential customer using 9,000 gallons of water would realize a 6.9% increase ($2.55). Analyses of the large commercial water users indicate that with their average monthly water use they would experience up to a 31.8% increase in their water bill. Emphasis was placed on analyzing increases to commercial customers that use large volumes akt of water. When base rates are decreased, the commodity rates must increase by a higher percentage. This coupled with the addition of two more tiers to the existing rate structure creates a significant financial impact on this customer classification as well as all other 11* classifications. Scenario P includes changes in the usage allowed within each tier based on the AWWA capacity ratios up to and including 11/2-inch meters. It is proposed that changes in the usage allowed within the tiers for larger meter sizes be phased in over time to avoid sudden and sharp increases. The 5-year financial projection Summary of Funds, proposed rate schedules and tables indicating the fiscal impact to customers for Scenario P may be found in Appendix 8 pages 8-1 through 8-10. Scenario P1 is identical to Scenario P but includes proposed conservation charge CF. The 5- year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 8 pages 8-11 through 8-14. Scenario P2 is also identical to Scenario P but includes proposed conservation charge CV. The 5-year financial projection Summary of Funds and proposed rate schedules may be found in Appendix 8 pages 8-15 through 8-18. - 12- CONCLUSION ' This Addendum presents 21 additional scenarios which propose the following: ' ➢ maintaining the existing 4-tier rate structure, ➢ adding new tiers ➢ no increases to base rates ➢ decreasing base rates ➢ varying commodity rate increases ➢ establishing a new conservation charge Each scenario meets all water policies and debt service coverage requirements; however, most of these scenarios result in substantial financial implications to the customers. I I Therefore, careful consideration must be given to each of them. Customer impacts, in terms of the percent increase in the calculated water bill, are more severe for scenarios K, L, M,N and P as compared to scenarios R and S. The primary reason for this is the need to increase the pricing for each tier to compensate for a reduction in the base rate. This particularly affects commercial customers that are usually in the higher tiers. Customer impacts are more severe for scenarios R and S when compared to the original Preferred Financial Scenario. The financial impacts to residential customers with high water ' use are greater than the financial impacts to commercial customers for scenarios R and S. Scenarios K, L, M, N and P propose significant changes to the existing rate structure and ' water rates. Prior to adoption of any one of these scenarios, it is recommended that a cost-of- service study be performed. The cost-of-service study would need to be performed by a qualified consultant. II - 13 - • APPENDIX 1 ASSUMPTIONS Enterprise Fund 1-1 AWRDIF Fund 1-3 PWSDIF Fund 1-4 SCENARIOS J—S1 ASSUMPTIONS FOR ENTERPRISE FUND Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) based on current housing trends FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact fees (320 x 1.25 =400) based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants, 2007 Potable Water Rates Various increases/decreases in both the base rates and commodity rates for Scenarios J—S1 Potable GPF Rates $0.40 per 1,000 gallons (existing rate, no projected increases) Reclaimed GPF Rates $0.25 per 1,000 gallons (existing rate, no projected increases) Water Use Trends Used same water use trends as those in CY 2007. The average monthly water use dropped to 8,600 gallons per month in CY 2007 from 9,800 gallons in CY 2006. Other Revenue Based on FY 08-09 proposed budget. Did not project increases as misc. charges fluctuate (NSF fees, reconnect fees, sewer billing, stormwater billing, plan review) Beginning Cash Balance Refer to Beginning Cash Balance Worksheet. Interest Income I The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) I Personnel Costs Based on Utility's proposed budget for FY 08-09, added 1 new FTE in all remaining years, annual increases of 6% for COLA/Merit all years Potable co&M Based on Utility's proposed budget for FY 08-09; 2.5% inflation for all remaining Fr: years. FY 08-09 includes cost increase for Tucson Electric Power's proposed rate increase. Reclaimed O&M Based on Utility's proposed budget for FY 08-09; FY 08-09 begin serving 2 Hilton golf courses with reclaimed, water purchased increases by 1,000 AF, 2.5% inflation for all remaining years. CAP Capital Costs Based on 10,305 AF at rate schedule revised by CAP 8/2/07. CAP Recharge Costs Based on rate schedule revised by CAP 8/2/07 as follows: FY 08-09 =4,000 AF FY 09-10 =4,000 AF FY 10-11 =4,000 AF FY 11-12 =2,500 AF No recharge in FY 12-13 when CAP deliveries begin. 1-1 SCENARIOS J— S1111 ASSUMPTIONS FOR ENTERPRISE FUND (continued) CAGRD Costs Based on S. Seng worksheet and rate schedule recommended by CAP 9/20/07. Debt Service P&I debt service for 1999-2003 bonds taken from amortization schedules provided by Stone &Youngberg (S&Y). P&I debt service for 2003 Sr. Lien Bonds taken from amortization schedules provided by S&Y. P&I debt service for 2005 Excise Tax Bonds taken from amortization schedule provided by S&Y. P&I debt savings for 2007 Refunding taken from schedules provided by S&Y. P&I debt service for proposed 2008 Excise Tax Bonds is an estimated annual payment for the Water Utility's portion of the Municipal Operations Center. Information was provided by Stacey Lemos, Finance Director and Stone & Youngberg. P&I debt service for proposed 2010 Sr. Lien Bonds was estimated by S. Seng using $7,000,000 at 5.0% for 20 years. Debt Service Coverage Established at 1.30 by Mayor& Council Water Policies Capital Improvements Projects are identified in 5-Year CIP and Potable Water System Master Plan. L_ 1-2 ' SCENARIOS J—S1 ASSUMPTIONS FOR AWRDIF FUND Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) based on current housing trends ' FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact fees (320 x 1.25 =400) based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants,2007) AWRD Impact Fees Increase to $5,182 per EDU phased-in over 5 years, Ordinance No. (0) 07-32 Revenue ' FY 08-09 revenue derived from 78 EDUs at $1,300 plus 234 EDUs at $2,270 FY 09-10 revenue derived from 100 EDUs at $2,270 plus 300 EDUs at $3,240 FY 10-11 revenue derived from 100 EDUs at$3,240 plus 300 EDUs at $4,210 FY 11-12 revenue derived from 100 EDUs at $4,210 plus 300 EDUs at $5,182 FY 12-13 revenue derived from 400 EDUs at $5,182 Potable GPF Rates ' $0.40 per 1,000 gallons (existing rate, no projected increases) Reclaimed GPF Rates $0.25 per 1,000 gallons (existing rate, no projected increases) ' Water Use Trends Used same water use trends as those in CY 2007. The average monthly water use dropped to 8,600 gallons per month in CY 2007 from 9,800 gallons in CY 2006. ' Beginning Cash Balance Refer to Beginning Cash Balance Worksheet. Interest Income The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) ' Debt Service P&I debt service for 2003 bonds (reclaimed phase 1)taken from amortization schedules provided by Stone & Youngberg. P&I debt service for 2007 WIFA loan(reclaimed phase 2) estimated by S. Seng using $5,000,000 at 3.536% interest over 20 years. P&I debt service for CAP project estimated by Stone & Youngberg with project costs identified in the Carollo Study dated July 2007 Debt service for reallocation of 3,557 AF of CAP water was provided by CAWCD. ' Reclaimed Capital Improvements Projects are identified in 5-Year CIP. 1 1-3 SCENARIOS J_S1 111 ASSUMPTIONS FOR PWSDIF FUND Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) based on current housing trends FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact fees (320 x 1.25 =400) based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants,2007 PWSD Impact Fees Increase impact fees to $2,567 per EDU effective 10/01/07, Ordinance No. (0)07-31. Revenue FY 08-09 revenue derived from 312 EDUs at at $2,567 Revenue for all remaining years derived from 400 EDUs at $2,567. Series 2003 bonds are completely used by end of FY 09-10 Beginning Cash Balance Refer to Beginning Cash Balance Worksheet. Interest Income The average interest rate for the Local Government Investment Pool over the I past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) Debt Service P&I debt service for 2003 bonds (expansion related projects) taken from amortization schedules provided by Stone & Youngberg. No further financing is projected. ' Capital Improvements Capital projects (growth related) are identified in the Potable Water System Master Plan and the 5-Year CIP. 1-4 ' APPENDIX 2 SCENARIO R Financial Summary 2-1 Rate Schedules 2-3 Comparison Tables 2-5 SCENARIO R1 Financial Summary 2-11 Rate Schedules 2-13 SCENARIO R2 Financial Summary 2-15 Rate Schedules 2-17 M CO CO CO co 0 0 I-- r O O O 0 N N CO CD 0 LO 0 N- 1` ,- r CO LC) 0 N- 0 LU N N N U) 0 M CO CD CO CO CO Tr M I` C0 Ln CUO O UD 0) CO 00 O LO Ln M C 7 (3) N 0 N N. 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J U w Q a W -,2,)uO O z < O • Z d V W CL m c m o) ce u W Q 0 0 O O c c c O a ce ca . 00000000 2 J in N O O co 0 0 0 0 0 U U O 5 = H W o co 6) CO CD CD N N CO 0 C1 Cl H Z H �v ,- ,- CO CO O ('') CO CO Z W ct m N7 COcO N O o r- 0 CV Cw U Q m V C CV CU c U- N w W M M 4) C crC H N X X ,- N M ,f Co 00 W V) C10 .1 ct ca L; .-.6. M U � a� c ai o L C - a a o Cr) U CU Iii2 c 3 N o -a c c 0 0 U L 6-18 APPENDIX 7 SCENARIO N Financial Summary 7-1 Rate Schedules 7-3 Comparison Tables 7-5 SCENARIO N1 Financial Summary 7-11 Rate Schedules 7-13 SCENARIO N2 Financial Summary 7-15 Rate Schedules 7-17 I 1 I I M 0) c) N DO o N t7 CO N O O O o 0 0 N (D o L1) O N- N. ,- COe- '1 O ti O Lf) N N N U) O M CO CD C) 00 C) V' M CV O) N- CO U) CO ,r 00 ti o 0 CD ,- e- CO CO 0) N O N 1` O 0 l'sO N- f` LU N In ti e- .4 Tr 0) %- CV N- V CO O N- CD O N 0) CO 00 O N CO N. 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O) W J < W,, W H a W O O < ZOQ CL CLQ CO) m > < ._-I w a m cc Z XW m a� Q °' o mo O Q ce U) 000000OO � Z � � 35 � J u, N CJ) 0 c, 0 0 0 0 0 0 0 Zi5 0 45 2 H H o � 0) CO CC) O (N CN CO CO 0 Q C2 Zw Q m N C� (O O N O O CC oW t 0 EA D Q 0 CO E c CO a) L1 W W M M a) .2 H N x x N M Tr CD CO ETcc 2 iii ci 0 ai OL c m a O a) 17') c 3 N o a v c o o U 8-18 • EXHIBIT "B" 0 0 4 C ViV-1 C 1 - 1-0 C 4b0VDEO A91' Town of Oro Valley Water Utility Commission Water Rates Analysis Report April 16, 2008 • 4F 4F 4/0 TOWN OF ORO VALLEY „V WATER UTILITY COMMISSION WATER RATES ANALYSIS REPORT APRIL 16, 2008 4F 4V 411, 410 ORO VALLEY TOWN COUNCIL err► Paul Loomis, Mayor Al Kunisch, Vice Mayor Paula Abbott, Council Member 41' K.C. Carter, Council Member Helen Dankwerth, Council Member Barry Gillaspie, Council Member Terry Parish, Council Member 411, 40 ORO VALLEY WATER UTILITY COMMISSION 4r Dave Powell, Chair 4111 Winston Tustison, Vice Chair Richard Davis, Commissioner 410 John Hoffmann, Commissioner Robert Milkey, Commissioner 411, Elizabeth Shapiro, Commissioner 41, lar 4110 TOWN STAFF David Andrews, Town Manager 41, Jerene Watson, Assistant Town Manager ' "' Philip C. Saletta, P.E., Water Utility Director r Shirley Seng, Water Utility Administrator Stacey Lemos, Finance Director Art Cuaron, Finance Analyst 41 4P 4F 411, err 410 ist • ,Ir • •� TABLE OF CONTENTS 41, SECTION TITLE PAGE + Index of Appendices i 410 • List of Acronyms ii 410 Executive Summary 1 46, Introduction 3 4I1P Enterprise Fund 4 r Alternative Water Resources Development Impact Fee Fund 6 4v Potable Water System Development Impact Fee Fund 8 s ,,r Preferred Financial Scenario 10 4IF Recommendation on Water Rates, Fees & Charges 12 ar 4I► Meter Installation Fees 14 40 Convenience Fees 15 4, Alternate Financial Scenario 16 Conclusion 17 4. Appendices ar • 41, +rr i rrr 41, r • +rr INDEX OF APPENDICES 411, 410 41, -411 APPENDIX s A. Assumptions for Preferred Financial Scenario 4„ A-1 Enterprise Fund A-3 Alternative Water Resources Development Impact Fee Fund Er A-4 Potable Water System Development Impact Fee Fund an B. Preferred Financial Scenario Air B-1 Enterprise Fund B-3 Alternative Water Resources Development Impact Fee Fund B-4 Potable Water System Development Impact Fee Fund .o B-5 Summary of all Funds rr C. Rate Schedules & Tables for Bill Comparisons for Preferred Financial Scenario 41, C-1 Potable Water Rates C-2 Reclaimed Water Rates C-3 Tables for Bill Comparisons by Meter Size 4V D. Rate Schedules for Other Service Fees & Charges • D-1 Meter Installation Fees 48P D-3 Convenience Fees s E. Alternate Financial Scenario "11, E-1 Assumptions for Alternate Financial Scenario +r E-5 Proforma: Enterprise Fund 41, E-7 Proforma: Alternative Water Resources Development Impact Fee Fund E-8 Proforma: Potable Water System Development Impact Fee Fund 411 E-9 Proforma: Summary of all Funds r" E-11 Water Rate Schedules for Alternate Financial Scenario 411 E-13 Table for Bill Comparisons by Meter Size for Alternate Financial Scenario • i r • r i • i • i 41, + LIST OF ACRONYMS r • • LIST OF ACRONYMS USED IN THIS REPORT • ✓ AF Acre Feet fr AMR Automated Meter Reading AWRDIF Alternative Water Resources Development Impact Fee wor AWWA American Water Works Association fi CAGRD Central Arizona Groundwater Replenishment District ,�► CAP Central Arizona Project 40COLA Cost Of Living Allowance CY Calendar Year 41. EDU Equivalent Dwelling Unit 41110 FTE Full Time Employee „r, FY Fiscal Year GPF Groundwater Preservation Fee 41, LTS Long Term Storage Credits + MOC Municipal Operations Center 4y O&M Operating and Maintenance PWSDIF Potable Water System Development Impact Fee 4W WIFA Water Infrastructure Finance Authority s i • i r 41, r s a r 41, • 4r s r rr • ii 41, s •• TOWN OF ORO VALLEY • WATER UTILITY COMMISSION f WATER RATES ANALYSIS REPORT d► APRIL 16, 2008 411, 411, .ur EXECUTIVE SUMMARY • The functions and duties of the Oro Valley Water Utility Commission include reviewing and "r developing recommendations for water revenue requirements, water rates and fee structures. 41IF The Commission annually evaluates staff recommendations based on a rates analysis to „M, assure the recommendations meet Town policies and bond covenants. ✓ The Utility has based its financial analysis on the American Water Works Association 4, (AWWA) Cash Needs Approach. The AWWA is the largest national organization that 4P develops water and wastewater policies, specifications and rate setting guidelines accepted by both government-owned and private water and wastewater utilities worldwide. 40 • This Water Rates Analysis Report contains detailed information on the three funds that 41, comprise the Oro Valley Water Utility: 41. • Enterprise Fund 4W • Alternative Water Resources Development Impact Fee Fund 'r • Potable Water System Development Impact Fee Fund 41, 41, Each fund is individually analyzed with regard to revenue and revenue requirements. The Preferred Financial Scenario includes five year projections for each fund. This allows • the Utility to evaluate the impact of future costs and the revenue sources that will be required to meet those costs. Based on the data contained within the Preferred Financial Scenario, the Water Utility Commission has made recommendations on water rates and fees that the Utility 410 will assess in FY 2008-09. Those recommendations are as follows: s rr • Increase the base rates for both the potable and reclaimed water rates by 5.0%. 411, • Increase the commodity rates for all 4 tiers by 5.0% for the potable water rates. • Increase the commodity rate for the reclaimed rates by 5.0%. • • The construction rate for potable water will increase from $6.00 to $6.25 per 1,000 gallons. • The construction rate for reclaimed water will increase by 5.0% and will remain equal to the reclaimed commodity rate. • • The water use contained within specific tiers is proposed to change to conform to • generally accepted rate setting principles on the following meter sizes: 3/4 x 3/4, 1, 1'/2, 3, 6 & 8 inch meters. • - 1 - 41, 411, 4P 41, ,, • Increase the Groundwater Preservation Fee by $0.15, from $0.40 to $0.55 per 1,000 gallons for the potable water customers. 41, • Increase the Groundwater Preservation Fee by $0.05, from $0.25 to $0.30 per 1,000 gallons for the reclaimed water customers. • Increase the existing meter installation fees to recover labor and material costs. ,,,, • Establish a"convenience fee" for processing credit card transactions by telephone. The Water Rates Analysis Report also includes an Alternate Financial Scenario for the Council's consideration. The Alternate Financial Scenario incorporates the same basic to assumptions as the Preferred Financial Scenario; however, the revenue is generated by annual rate increases that are different than those proposed in the Preferred Financial Scenario. Both scenarios meet the required 1.3 debt service coverage ratio. A major 41''' difference in the scenarios is that the Alternate Financial Scenario does not minimize the potential "rate shock" in future years. The Utility employed Red Oak Consulting, a division of Malcolm Pirnie, Inc., to review this 4110 Rate Analysis and provide an opinion on the reasonableness and consistency of the 410 assumptions contained within the analysis. They verified the calculations, tested the consistency of underlying assumptions and calculation methods, and reviewed the consistency of the results with the Utility's current financial position and recent cash flow. ar Their professional opinion will be provided as a supplement to this report. err The Commission presents this Rates Analysis Report for the review and consideration of the Mayor and Council. The Commission and Water Utility Staff are available to discuss this report in greater detail at the Council's request. Utility Staff are planning to request err` Council's approval of a Notice of Intent on April 16, 2008 and approval of any rate increases err at a Public Hearing on May 21, 2008. 4P The Oro Valley Water Utility Commission is proud to serve the Town of Oro Valley, it citizens and the customers of its water utility. The Commission extends their appreciation to 410 the Mayor and Council for their consideration and guidance and looks forward to their continued direction. 4r err 411, 40 41, 411, 4, 4V AI air► _2_ AP r • ✓ TOWN OF ORO VALLEY WATER UTILITY COMMISSION �• WATER RATES ANALYSIS REPORT + APRIL 16, 2008 ar + INTRODUCTION 411, 4, The Oro Valley Water Utility was established as a self-supporting enterprise of the Town. The Utility is comprised of three separate funds that have been established for a specific • purpose. The Funds are as follows: r • Enterprise Fund 411F • Alternative Water Resources Development Impact Fee Fund 4, • Potable Water System Development Impact Fee Fund • The Enterprise Fund is the operating fund for the Utility. The expenditures managed from this fund include personnel, operations and maintenance for both potable and reclaimed 411 water systems, capital costs for existing potable water system improvements and related debt • service. Revenue for this fund includes water sales, interest income, service fees and 411P miscellaneous charges. The Alternative Water Resources Development Impact Fee Fund was established in 1996 to • manage capital expenditures related to alternative water resources including reclaimed water 4, and Central Arizona Project (CAP) water. Expenditures include acquisition of water rights required for growth and capital costs, including debt service, to deliver reclaimed water and CAP water to the Town. Revenue for this fund is received from impact fees collected at the 40' time water meters are purchased and from interest income. Additionally, the Groundwater Preservation Fees, which are collected through the Enterprise Fund, are transferred to the 41, Alternative Water Resources Development Impact Fee Fund to pay for capital costs and debt service. 410 • The Potable Water System Development Impact Fee Fund was established in 1996 to s manage capital expenditures related to expansion or growth-related potable water capital projects and related debt service. These projects include wells, pump stations, reservoirs and mains for the potable water system. Revenue for this fund is received from impact fees "'r collected at the time water meters are purchased and from interest income. 410 ,,r The revenue and expenditures of all three funds are combined primarily to determine if the Utility meets the debt service coverage requirement established in the Mayor and Council 4111P Water Policies and the 2003 Bond Covenants. Otherwise, each fund is independent with 41/0 regard to revenue and expenses. The revenue from the individual funds may not be ,,r„ consolidated nor used for any purpose other than for which they were originally established. 411, ..v 4W -3 - M. • 410 411 Each fund is addressed in more detail in the report. Figure 1 illustrates the relationship between the three funds. 4r Figure 1 411, Enterprise Fund AWRDIF Fund PWSDIF Rev: Water sales, service Rev: AWRDIF impact Rev: PWSDIF impact ✓ fees and charges fees&Groundwater fees Preservation Fees Exp: Operating costs, Exp: Alternative water Exp: Growth related ; ,, existing system capital resources(CAP& potable water capital improvements and reclaimed water),related improvements and debt service capital improvements& related debt service debt service 411, • ` Summary of All Funds 41, The Utility combines all funds to 411, determine the overall debt service coverage ratio required by Town Policy& bond covenants. The Utility's net revenue 41r, must be equal to or greater than 1.3 times the annual debt service. ENTERPRISE FUND ar REVENUE 411W The Enterprise Fund is projected to have a cash balance of$10 million at the beginning of ,,, FY 2008-09. Enterprise funds may be used for operating costs including personnel, operations and maintenance, capital improvements for the existing potable water system and 411, debt service. Water sales revenues are estimated to meet the FY 2007-08 projections. Revenue from other service fees and charges is estimated to exceed the budgeted projections ,►► by $141,600 in part as a result of the Town's General Fund paying for billing and collection fr services provided by the Utility for Stormwater fees. This revenue was not included in the FY 2007-08 budget. Interest income is expected to slightly exceed the budgeted projections. • '' All Groundwater Preservation Fees are transferred to the AWRDIF Fund to help repay debt on the reclaimed water system and the future CAP water delivery system and are not included in the revenue comparison of the Enterprise Fund. The following table provides the Utility's budgeted revenue compared to the estimated revenue for FY 2007-08: 4110 FY 2007-2008 FY 2007-2008 Difference Revenue Source Budget Estimated Increase(Decrease) Water Sales $ 11,343,000 $ 11,382,800 S 39,800 Service Fees/Charges $ 465,000 $ 606,600 $ 141,600 Interest Income $ 350,000 $ 400,000 $ 50,000 • Total $ 12,158,000 $ 12,389,400 $ 231,400 -4- • • 41 41 40 40 Revenues projected for FY 2008-09 were based on anticipated annual growth in the customer to base of 250 single family residential customers and water consumption patterns similar to 4. calendar year (CY) 2007. Analysis of the water use trends for CY 2007 indicated the average monthly use for a single family residence with a 5/8 x 3/4 inch water declined from ,,,,► 10,000 gallons to 9,000 gallons per month. This reduction may be a result of the implementation of the Drought Preparedness Plan and monsoon rains received last summer. 41 The reduction in water use was taken into consideration whenJ ro'ecting future water sales p revenue. The following table indicates the amount of water sales revenue that would be err realized with the existing rate structure and no water rate increase: 41, FY 2007-2008 FY 2008-2009 Difference 41 Revenue Estimate Revenue Projection Increase (Decrease) 481 $11,382,800 $11,030,265 ($352,535) Under the existing rate structure, the projected revenue decrease is a result of a significant '' decline in projected construction water sales in addition to the decrease in water consumption 41 by single family residences. REVENUE REQUIREMENTS 4' Because of the timing of the preparation of this report relative to the Town's budgeting 411, process, the Commission recognizes that both the projected revenues and the projected expenditures may need to be revised. The amounts shown below and used in the financial analysis maydiffer slightly from those included in the Department Budget Request and the y g y 4r' Manager's Budget Review because of the availability of more recent and reliable r information. The Commission understands that Oro Valley Water Utility Staff, the Town Manager and the Mayor and Council may adjust expenditures to fit the final estimate of revenues based on the action of Council on the rate structure for FY 2008-09. 40 41, The following table is a comparative summary of operating expenses for the Water Utility 41 Enterprise Fund. Budgeted amounts for FY 2007-08 are compared to the projected expenses for FY 2008-09 used in the financial analysis: 411 ` OVWU FY 2007-2008 FY 2008-2009 Change ,► Expenditures Budget Projections Increase(Decrease) Personnel $ 2,365,664 $ 2,427,259 $ 61,595 40 0 & M $ 3,627,840 $ 4,073,508 $ 445,668 40 CAP Capital Costs $ 216,405 $ 216,405 $ 0 CAP Recharge $ 237,500 $ 420,000 $ 182,500 CAGRD $ 1,012,000 $ 836,919 ($ 175,081) Capital Outlay $ 5,662,140 $ 4,737,000 ($ 925,140) • Debt Service $ 3,102,771 $ 3,597,312 $ 494,541 Totals $16,224,320 $16,308,403 $ 84,083 • 41100 -5 - S 40 4, ,, Projected personnel costs include the addition of 1 full time employee (FTE). The proposed 411 FTE would be assigned to field operations. Personnel costs also include a proposed 6% COLA/merit increase as recommended by the Town Finance Department and reclassification 411, of four existing employees. to The projected operations and maintenance costs include the O&M costs for both the potable tar water system and the reclaimed water system. With the exception of extraordinary and/or one-time expenditures, O&M costs were projected to have inflationary increases of 2.5% ,,► annually. Tucson Electric Power anticipates a significant rate increase this coming year which has been factored into the projections. Additionally, the cost for Tucson Water to treat our reclaimed water has increased and the volume of reclaimed water that will be used will increase when reclaimed deliveries begin for the El Conquistador golf courses. 40 411, The projected increase in CAP recharge costs is due to projected increases in the cost of CAP water and the volume of water that will be recharged at the Kai Farms Groundwater Water 40 Savings Facility. In FY 2008-09, the Utility is proposing to recharge 4,000 AF. ar The projected decrease in costs for the Central Arizona Groundwater Replenishment District (CAGRD) is a result of the Utility's plan to better manage its water and financial resources. 40 The Utility will use Long Term Storage (LTS) credits to offset a portion of the costs charged by the CAGRD through recently permitted recovery wells and the direct transfer of LTS , ► credits to the CAGRD. r Projected capital projects for existing system improvements in FY 2008-09 include drilling 4. and equipping 1 new well, equipping a well drilled in FY 2007-08, water main relocations and modifications and a water main replacement project. Capital outlay also includes new ; ,,, vehicles, new water meters, security equipment and other minor assets. Projected debt service will increase based on the Utility's portion of the proposed debt for the Phase 1 of the Municipal Operations Center (MOC). Phase 1 of the MOC will include new dir office buildings for the Water Utility Administration and Operations personnel, Operations personnel for the Public Works Department and a Police Department Training Facility. Additionally,dr Phase 1 will include Maintenance Facilities for both the Water Utilityand the Public Works Department. Projected expenditures in the Enterprise Fund are proposed to be funded with revenue 4110, generated from water rates, fees, charges and cash reserves. dr ALTERNATIVE WATER RESOURCES DEVELOPMENT IMPACT FEE FUND REVENUE ' The Alternative Water Resources Development Impact Fee Fund (AWRDIF) is projected to 4. have a cash balance of $205,000 at the beginning of FY 2008-09. AWRDIF funds may be used for capital expenditures related to alternative water resources including reclaimed water and CAP water. The revenue sources for the AWRDIF Fund are from impact fees collected 4W rr -6- ar0 41. 411, r when a water meter is purchased and from interest earned on cash balances. The Groundwater Preservation Fees (GPF) collected through the Enterprise Fund are transferred to the AWRDIF Fund to help repay outstanding debt for the reclaimed water delivery system and for future debt on the CAP water delivery system. The following table provides the budgeted revenue compared to the estimated revenue for FY 2007-08: FY 2007-2008 FY 2007-2008 Difference 4110 Revenue Source Budget Estimated Increase(Decrease) Impact Fees $ 558,000 $ 443,000 ($ 115,000 ) i,,,,► GPF $ 1,108,000 $ 873,600 (5 234,400 ) ,, Interest Income $ 46,000 $ 55,000 $ 9,000 411 Miscellaneous $ 0 $ 170,000 $ 170,000 410 1,712,000 1 541 600 $ 170 400 Total $ $ ( ) 410 The Town Council adopted new impact fees in 2007. The estimated decrease in impact fee revenue occurred because the process of finalizing the revised impact fees was not completed until after the completed.was process budget The original proposed impact fees were to be g "'' phased in over 3 years; however, Ordinance No. (0) 07-32 adopting the new impact fees allowed for a 5 year phase in of the new fees beginning in September 2007. The fees will automatically increase on September 19th every year through September 19, 2011. ` ' The projected decrease in GPF revenue is a result of customers using less than average water. 411, The water use trends in CY 2007 are discussed in more detail in the Enterprise Fund section of this report. 411, Revenues projected for FY 2008-09 were based on anticipated annual growth in the customer p J p • ''' base of 250 new connections or 312 Equivalent Dwelling Units (EDUs). An EDU is ,►► equivalent to one single family residence with a 5/8 x 3/4 inch meter. For impact fee projections, the Utility converts the estimated new connections to EDUs at a ratio of 1.25 4111, EDUs to 1 new connection based on ten year historical trends. r • r The following table indicates the amount of impact fee and GPF revenue that would be • ,, realized with the currently authorized increased in impact fees and with and without a GPF increase: +11P FY 2008-2009 FY 2008-2009 Revenue Projection Revenue Projection Difference With GPF Increase Without GPF Increase Impact Fees $ 632,580 $ 632,580 0$ GPF $1,656,556 $1,200,895 $ 455,661 • • 0 S S S AY 411, EP REVENUE REQUIREMENTS The AWRDIF Fund was allocated a portion of the Series 2003 Bond proceeds to finance 410 construction for the first phase of the reclaimed water system. The second phase of the ter' reclaimed water system is being financed by a loan through the Water Infrastructure Finance Authority of Arizona(WIFA). 41, The acquisition of 3,557 AF of CAP water rights in FY 2007-08 will be funded through the ' AWRDIF Fund over the next four years. This additional water will be necessary to meet the ; ► demands of future customers and as such will be paid from this Fund. The following table is a comparative summary of expenditures for the AWRDIF Fund. ▪"''' Budgeted amounts for FY 2007-08 are compared to the projected expenses for FY 2008-09 used in the financial analysis: FY 2007-2008 FY 2008-2009 Change 411J Expenditures Budget Projections Increase(Decrease) 41, p g Professional Services $ 35,500 $ 46,000 $ 10,500 Capital Improvements $ 5,650,000 $ 623,000 (5 5,027,000) 4110 Debt Service $ 1,577,118 $ 1,752,010 $ 174,892 Total $ 7,262,618 $ 2,421,010 ($ 4,841,608) iso EP The professional services are expenses incurred for renewable water studies including the „r Lower Santa Cruz Managed Recharge Project and the CAP water pilot study for treatment techniques (slow sand filtration and reverse osmosis). 411, The capital improvements in FY 2007-08 represent the design and the majority of ter► construction costs for the second phase of the reclaimed water system. The project will not 4r be completed within FY 2007-08; therefore, the remaining construction costs will be carried forward into FY 2008-09. 41, if, The increase in debt service is attributed to the Utility incurring additional debt to finance the second phase of the reclaimed water system. The repayment schedule for phase one debt was • provided by the bond underwriters. The repayment schedule for the phase two WIFA loan was estimated by Utility Staff. in the AWRDIF Fund are proposed to be funded with WIFA loan •i Projected expenditures p p proceeds, revenue generated from impact fees, groundwater preservation fees and interest • income. POTABLE WATER SYSTEM DEVELOPMENT IMPACT FEE FUND REVENUE • The Potable Water System Development Impact Fee Fund (PWSDIF) is projected to have a cash balance of $8.9 million at the beginning of FY 2008-09. The PWSDIF Fund was allocated a portion of the Series 2003 Bond proceeds to finance construction of growth- 0 -8 - • S i 41D 41 41 4P related potable water system improvements and the refinancing of the Series 2000 Bond issue. Revisions to the capital improvement plan due to reduced growth have left sufficient bond proceeds available to construct the needed improvements from FY 2008-09 through FY 41" 2009-10. Growth-related improvements after this time will be paid for with cash. AV 41The revenue sources for the PWSDIF Fund are from impact fees collected when a water meter is purchased and from interest earned on cash balances. The Town Council adopted • new impact fees in 2007. These new fees became effective in September 2007. The AP following table provides the budgeted revenue compared to the estimated revenue for FY 41IF 2007-08: 4tr FY 2007-2008 FY 2007-2008 Difference Revenue Source Budget Estimated Increase(Decrease) 41 Impact Fees $ 947,500 $ 1,736,302 $ 788,802 4VInterest Income $ 430,000 $ 378,000 ($ 52,000) • Total $ 1,377,500 $ 2,114,302 $ 736,802 +1, The projected increase in impact fee revenue is a result of numerous new commercial „r connections during 2007. Commercial connections typically require meters larger than 5/8 x AV3/4 inch and they are assessed a fire flow component included in the impact fees. It is difficult to project commercial connections; therefore, revenue projections are based on 41' projected Equivalent Dwelling Units (EDUs). 411, Revenues were projected for FY 2008-09 based on anticipated annual growth in the customer base of 250 new connections or 312 EDUs. An EDU is equivalent to one single family 41, residence with a 5/8 x 3/4 inch meter. For impact fee projections, the Utility converts the 4V estimated new connections to EDUs at a ratio of 1.25 EDUs to 1 new connection base on ten • year historical trends. The following table indicates the amount of impact fee revenue that • would be realized in FY 2008-09: FY 2007-2008 FY 2008-2009 Difference • Revenue Estimate Revenue Projection Increase(Decrease) • $ 1,736,302 $ 800,900 ($ 935,402) • The estimated decrease in impact fee revenue is a result of commercial connections greater • than projected in FY 2007-08 discussed above and a lower projected growth rate for FY • 2008-09. In FY 2007-08 the projected growth rate was 400 EDUs and for FY 2008-09 the • projected growth rate is 312 EDUs. • REVENUE REQUIREMENTS • Growth-related potable water system improvements are managed through the PWSDIF Fund. These improvements include new potable water reservoirs, pump stations, water mains and wells that are required to meet the demands of new customers. The following table is a • comparative summary of expenditures for the PWSDIF Fund. Budgeted amounts for FY 41, 4. 411 4. 2007-08 are compared to the projected expenses for FY 2008-09 used in the financial analysis: Orr FY 2007-2008 FY 2008-2009 Change 411, Expenditures Budget Projections Increase(Decrease) Capital Improvements $ 1,570,000 $ 570,000 ( $ 1,000,000) 411, Debt Service $ 631,920 $ 637,646 $ 5,726 411'' Total $ 2,201,920 $ 1,207,646 ( $ 994,274 ) P ,,, The estimated decrease in capital improvements is a result of reduced growth and the completion of growth-related projects. Additional growth-related improvements will not be 41, constructed until required and demands of future customers are imminent. 4119 The capital improvements for FY 2008-09 include one water main installation project and AP one water main oversizing project. These projects will meet the demands of future development by providing additional water supply and fire flow capacity. my err► The debt service payments are pursuant to the repayment schedule provided by the bond ,, underwriters. 41, Projected expenditures in the PWSDIF Fund are proposed to be funded with Series 2003 4W bond proceeds, cash reserves generated from impact fees and interest income. 4y 44, PREFERRED FINANCIAL SCENARIO 4I ,,,► Prior to developing financial forecasts, financial considerations were evaluated relating to err significant short and long term capital expenditures, the Utility's existing cash reserves, existing outstanding debt, proposed future debt and the related debt service payments. To arrive at a Preferred Financial Scenario, the goals of the Commission were to ensure that all Orr existing rate setting policies were met, cash reserves were utilized to minimize future debt and proposed rate increases would not result in rate shock. A key component in the rate setting process is the calculation of the debt service coverage ratio. A 1.3 debt service coverage ratio was established by Council policy with the adoption of Resolution No. (R)05- 09. The Commission's finance subcommittee and Utility Staff evaluated different financial • scenarios prior to forwarding a recommendation to the Commission. With regard to the Preferred Financial Scenario, the following are key assumptions used to 411/ financial projections. The entire set of assumptions maybe found in Appendix develop the p � p p • A. i • Annual growth is estimated at 250 new connections annually which equates to 312 EDUs for FY 2008-09. Projected growth for future years has been estimated at 320 new connections annually which equates to 400 EDUs. • • S - 10- 110 4, 4, EP 4, g, ,,, • The Utility will use cash reserves to fund existing system capital improvements in FY 2008-09 and FY 2009-10. • The Utility will finance future existing system capital improvements beginning in FY " 2010-11. 41. • It is assumed the Utility will not finance future growth related capital improvements. ,,,► • The El Conquistador Golf Courses (36 holes) will be removed from groundwater by October 2008. der • Debt service for CAP water development begins in FY 2010-11. dar • Debt service for the proposed Municipal Operations Center begins in FY 2008-09. • Projected operating costs in FY 2008-09 are similar to the Utility's budget request. „,P Future years include 2.5% annual inflation after one time expenditures have been deducted. 4111, • Significant cost increases due to potential electric rate increases and increases in 411, reclaimed water costs under the Tucson IGA. • Projected operating costs for direct delivery of CAP water begin in January 2013. .ter • The Potable Water System Development Impact Fees were increased to $2,567 per EDU. These fees are not proposed to increase within the 5 year projection period. 410 • The Alternative Water Resources Development Impact Fees were increased to $1,300 p p per EDU. This increase represents the first of five incremental increases. The 41 subsequent increases will occur over the next four years. 4, Analysis of the Preferred Financial Scenario indicates that the Enterprise Fund can utilize 4111, cash reserves to finance the proposed existing system capital improvements for FY 2008-09 and FY 2009-10 but will need to finance future improvements. When the Utility assumes more debt, the water rates must increase in order to maintain a minimum 1.3 debt service err coverage ratio. The Preferred Financial Scenario proposes new debt for the Enterprise Fund in FY 2008-09 and FY 2010-11. The projected rate increases for the base rates and commodity rates begin in FY 2008-09 at 5% followed by 6%, 7%, 8% and 8% for the • following four years. The operating and maintenance costs for direct delivery of CAP water • will be paid through water rates; however, the capital costs to construct the CAP water delivery system will be funded with revenue derived from Groundwater Preservations Fees and Alternative Water Resources Development Impact Fees • The financial projections detailed in the Preferred Financial Scenario for the AWRDIF Fund • include assumptions that the second phase of the reclaimed water system will be constructed in FY 2007-08 and 2008-09. This project will be financed with a loan from the Water • Infrastructure Finance Authorityof Arizona (WIFA). In addition, the repayment of capital costs for the reallocation of 3,557 AF of CAP water will be funded through the AWRDIF Fund. These payments for the reallocation began in FY 2007-08 and continue through FY 410 2011-12. Construction of the CAP water delivery system will be managed through the iprojectbegin in FY 2010-11.will AWRDIF Fund. It is estimated that debt service for this • To meet the revenue requirements of this Fund, it has been assumed that the Groundwater 1110 Preservation Fees will increase annually for the five year projection period and that the Alternative Water Resources Development Impact Fees will increase over a five year period beginning in FY 2007-08 pursuant to Ordinance No. (0) 07-32 which was adopted in 2007. • • i _ 11 _ s 4. 411, 40 4. 4. The financial projections detailed in the Preferred Financial Scenario for the PWSDIF Fund include assumptions for growth related capital improvements as detailed in the Potable 481 Water System Master Plan adopted by the Town Council in 2006. In order to pace water "' infrastructure construction with new growth demands, some of these projects have been 4. delayed over the last several years resulting from a growth rate slower than projected. As 41 such, there are 2003 bond proceeds remaining to fund the capital improvements for FY 2008- 09 and FY 2009-10. The Potable Water System Development Impact Fees were increased pursuant to Ordinance No. (0) 07-31 adopted in 2007. The projections for the Enterprise Fund, AWRDIF Fund and the PWSDIF Fund were combined to evaluate the overall debt service coverage at the end of each fiscal year. r Analysis indicates that, under the Preferred Financial Scenario, the Utility will meet the debt 411 service coverage requirement established by the Mayor and Council Water Polices and Bond 4V Covenants for all five years. Proformas for the Preferred Financial Scenario may be found in Appendix B. 41, 4. dir RECOMMENDATION ON WATER RATES,FEES & CHARGES IV After reviewing the analysis of the three Funds and their respective revenue requirements for '"w the next five years, the Water Utility Commission is recommending: 4P • „► • Increase the base rates for both the potable and reclaimed water rates by 5%. • Increase the commodity rates for all 4 tiers by 5% for the potable water rates. • Increase the commodityrate for the reclaimed rates by5%. • The construction rate for potable water will continue to be $1.00 greater than the '' highest tiered rate and will increase from $6.00 to $6.25 per 1,000 gallons. 4111 • The construction rate for reclaimed water will increase by 5% and will remain equal 4F to the reclaimed commodity rate. • The water use contained within specific tiers is proposed to change to conform to 4 generally accepted rate setting practices on the following meter sizes: 3/4 x 3/4, 1, • 11/2, 3, 6 & 8 inch meters. • • Increase the Groundwater Preservation Fee by $0.15, from $0.40 to $0.55 per 1,000 4110 gallons for the potable water customers. • Increase the Groundwater Preservation Fee by $0.05, from $0.25 to $0.30 per 1,000 gallons for the reclaimed water customers. • • Increase the existing meter installation fees to recover labor and material costs. • • Establish a "convenience fee" of $1.50 per transaction for processing credit card • transactions by telephone. ' of the proposed water rates maybe found in Appendix C. The The detailed schedule p p pp • proposed changes for meter installation fees and convenience fees may be found in O Appendix D. S S S i _ 12_ • • 4. 0/0 41. AV,,,, The following table illustrates the proposed water rate changes for a single family residential customer with a 5/8 x 3/4 inch water meter. Other water providers in the iir region are included for comparison. -11 r 1 b 1) 2° 11) b / ?6)c 01 Tier 1 Tier 2 Tier 3 Tier 4 '" Water Provider Monthly Cost Per Cost Per Cost Per Cost Per 411 Base Rate 1,000 Gals. 1,000 Gals. 1,000 Gals. 1,000 Gals. Oro Valley Current 13.25 2.08 2.81 3.76 5.00 dr Oro Valley Proposed 13.91 2.18 2.95 3.95 5.25 40 Metro Water 13.76 2.19 3.43 4.33 5.76 r Marana Water 14.00 2.15 3.00 3.90 4.80 Tucson Water -Current 5.42 1.57 5.48 7.75 10.76 do Tucson Water-Proposed 5.52 1.65 6.06 8.59 11.98 err► Oro Valley Water, Tucson Water and Metro Water no longer include water usage in their rr base rates; however, Marana Water includes 1,000 gallons. Oro Valley, Metro and Marana all base their rates on 1,000 gallons. Tucson Water's commodity rates are based on the use Orr of 100 cubic feet which is the equivalent of 748 gallons. To simplify the comparison, the r rates for Tucson Water have been converted to represent the charge for 1,000 gallons. For 41, the most part, the tiered rate structures for all the Water Utilities are similar. A table Orr providing proposed rates for all Oro Valley Water Utility meter sizes may be found in Appendix C. 41IF Appendix C also contains tables that calculate the dollar increase and the percentage increase that a customer would experience on a monthly bill under the proposed rates. iir Monthly bill amounts are calculated in 1,000 gallon increments for the 5/8 x 3/4 inch meters • larger meter sizes.lar and a variety of increments forg • • For comparison purposes, the following table provides a calculation of a monthly bill O amount for a single family residential customer with a 5/8 x 3/4 inch meter for the water utilities surrounding the Oro Valley Water Utility service area. Direct comparison of raw • base rates and commodity rates is less effective because of the varying rate structures of each O utility. A better comparison is to calculate the cost for specific consumption levels during a O summer month. Please note that these charges only reflect water use fees and specifically exclude taxes, Groundwater Preservation Fees and similar renewable water resource fees O charged by other water providers. 0 O Cost for Cost for Cost for Cost for Water Utility 7,000 Gallons 10,000 Gallons 25,000 Gallons 40,000 Gallons O Oro Valley-Current 27.81 36.24 86.94 153.26 O Oro Valley-Proposed 29.17 38.02 91.27 160.92 O Metro Water 29.09 35.66 89.13 165.52 Marana Water 26.90 3 3.3 5 82.85 15 0.3 5 O Tucson Water-Current 16.41 21.12 106.22 243.54 SP Tucson Water-Proposed 17.07 22.02 116.10 268.68 0 II 4i - 13 - - • ii 0 411, 4. 4W 4W 411, A typical single family residential customer averages 9,000 gallons of water per month over the course of one year. Based on this water use, they would experience an increase of$1.64 per month for water used and an increase of$1.35 for Groundwater Preservation Fees. The total monthly increase for 9,000 gallons of water used in a month would be $2.99. This ,,► represents an 8.1% increase of which 4.4% is for water use and 3.7% is for the GPF. Each individual customer's increase in their monthly bill will depend on the volume of water they use. Tables that calculate the dollar increase and the percentage increase that a customer r' would experience on a monthly bill under the proposed rates may be found in Appendix C. 4' The proposed increase in the Groundwater Preservation Fees (GPF) will help repay the debt on the reclaimed water system, the capital charges associated with the reallocation of 3,557 40 AF of CAP water and ultimately, repay the debt for the costs to construct the CAP water 419 delivery system. It is proposed that the GPF be increased gradually over a five year period. ,, In keeping with the Town Council's direction in prior years, the reclaimed water customers will pay a reduced rate for the GPF. OTHER SERVICE FEES & CHARGES METER INSTALLATION FEES There are currently over 18,000 water meters in the water distribution system. Water meters 4t, are the equipment that measures the volume of water used in order to bill each customer for their specific water use. Water sales revenue represents 93% of the total revenue collected 41, for the Enterprise Fund. This amount does not include Groundwater Preservation Fees and "' Impact Fees that are accounted for in separate Funds. 4' „► The Utility is also proposing to implement Automated Meter Reading (AMR) technology in FY 2008-09. As new meters are purchased by developers, the meters installed will be 410, pp eq ui ed with AMR technology. The additional cost for this equipment will be paid by new development at the time the meter is purchased. With regard to meter replacements, the 41. Utility will absorb the additional cost of the AMR equipment. It is estimated that increased revenue from accurately functioning meters will offset the cost of the AMR equipment. Full implementation of AMR will take many years to accomplish. The number of meters that can - equipment will be be replaced and/or retro fitted with AMR equip dependent on the available funds e S in any given year. •• AMR technology is currently being used by the City of Tucson Water Dept., Metropolitan Domestic Water Improvement District and the Town of Marana Water Dept. The use of S AMR technology will provide the Utility the ability to provide improved customer service, • assist with water conservation measures and eventually reduce labor costs. • Appendix D contains a proposed schedule of meter installation fees with AMR equipment conventional equipment. Both o tions are being and with p gprovided to the Council for their consideration. Regardless of which meter is installed, the meter installation fees need to be increased to recover the labor and material costs related to meter installations. S S - 14- S S 4r CONVENIENCE FEES Earlier this year, the Water Utility began accepting credit cards as a form of payment for 4,10 monthly water bills. Payment by credit cards was implemented after many requests from our "' customers over the past 2 years. The credit card vendors charge the Utility a fee of 1.8% of r each credit card transaction amount. The Utility proposes to use the revenue from late fees to 40 offset the transaction fees. Some of the credit card vendors (Visa/MasterCard) do not allow the merchant to recover that transaction fee if the card is presented in person. However, they have no policies with regard to credit card transactions that are completed by telephone. The Utility Staff have found that credit card transactions completed over the telephone take them 410 approximately 8 minutes and is 3 to 4 times longer than the transactions completed in person. When a credit card is presented in person, the card is swiped and most of the work is done 411, electronically. When the transaction occurs over the telephone, all of the work is performed rrr' manually. In order to recover some of the cost for the convenience to be able to pay by 4r► telephone, the Utility is recommending that a Convenience Fee of $1.50 be established for credit card transactions completed by telephone. The fee is detailed in Appendix D. 410 '' No other adjustments to service fees and charges are necessary at this time; however, the Commission recommends that the service fees and charges continue to be reviewed on an annual basis. • • • S S S S S • • • • S 110 S S S S S S S - 15- • S 40 4101, ilir IV • ,, ALTERNATE FINANCIAL SCENARIO or Appendix E presents an Alternate Financial Scenario to allow for a comparison with the Preferred Financial Scenario. Both scenarios used identical assumptions for growth, ▪,,, operating costs and debt service. The differences between the two scenarios are the rate increases that will generate the needed revenue. The proposed increases to the GPF are the same in both scenarios. Mr 40 Given the downturn in economic conditions, the Water Utility Commission and Utility Staff Orr wanted to provide an option for the Council to consider with regard to water rates. The Alternate Financial Scenario proposes a 2.5% rate increase for the base rates and the 4P commodity rates in FY 2008-09 rather than the 5.0% rate increase that is proposed in the AP Preferred Financial Scenario. 41, The following is a comparison between the Preferred Financial Scenario and the Alternate AP Financial Scenario for proposed rate increases, GPF increases, the total financial impact and iir the projected monthly bill for a single family residential customer using 9,000 gallons of ir water per month. 4/ AY Preferred Financial Scenario 4110 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 Water Rates 4.4% 5.3% 5.9% 6.5% 6.3% GPF 3.7% 4.5% 5.1% 5.5% 0.0% 411P Total Impact 8.1% 9.8% 11.0% 12.0% 6.3% Monthly Bill $40.02 $43.93 $48.77 $54.65 $58.07 A, Monthly Increase $2.99 $3.91 $4.84 $5.88 $3.42 lir411, • 0 • Alternate Financial Scenario FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13 • Water Rates 2.2% 6.1% 5.9% 9.0% 6.3% 10 GPF 3.7% 4.6% 5.2% 5.6% 0.0% • Total Impact 5.9% 10.7% 11.1% 14.6% 6.3% • Monthly Bill $39.20 $43.40 $48.23 $55.25 $58.75 • Monthly • Increase $2.17 $4.20 $4.83 $7.02 $3.50 • iBoth the Preferred Financial Scenario and the Alternate Financial Scenario meet all revenue • requirements and debt service coverage requirements. The Alternate Financial Scenario • • - 16- ID 0 i 410, ✓ dr proposes a lower rate increase in FY 2008-09; however, it does not minimize potential rate shock in future years. The Preferred Financial Scenario proposes levelized rate increases 4111, over the 5 year projection period to minimize potential rate shock. iir CONCLUSION s • The Commission presents this Water Rates Analysis Report for the review and consideration 40 of the Mayor and Council. The Commission and Water Utility Staff are available to discuss this report in greater detail at Council's request. Utility Staff are planning to request Council's approval of a Notice of Intent on April 16, 2008 and approval of any rate increases "r at a Public Hearing on May 21, 2008. s ,r, The Oro Valley Water Utility Commission is proud to serve the Town of Oro Valley, it citizens and the customers of its water utility. The Commission extends their appreciation to � the Mayor and Council for their consideration and guidance and looks forward to their • continued direction. • 110 • i • • • • • • • • • • • • 411, AP EP s s to APPENDIX A IF 41, Assumptions for Preferred Financial Scenario 40 419 A-1 Enterprise Fund A-3 Alternative Water Resources Development Impact Fee Fund � A-4 Potable Water System Development Impact Fee Fund • 41. 4111, err PREFERRED FINANCIAL SCENARIO AP ASSUMPTIONS FOR ENTERPRISE FUND err Growth ▪r► FY 08-09: 250 new connections for water rates (based on current housing trends) FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates ,,► (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants, 2007) Water Rate Structure 4 Tiers—existing rate structure; changes to usage allowed in some of the tiers to bring into conformance with AWWA capacity ratios. Water Rate Increases dr FY 08-09 = 5%, FY 09-10 = 6%, FY 10-11 =7%, FY 11-12 = 8% and FY 12-13 = 8% (same increases in base & commodity rates) Construction Water Rate err $1.00 more than Tier 4 in each year ,,, Potable GPF Rates (cost per 1,000 gallons) FY 08-09 = $0.55, FY 09-10 = $0.75, FY 10-11 =$1.00, FY 11-12 = $1.30 and FY 12-13 = $1.30 '' Reclaimed GPF Rates (cost per 1,000 gallons) ,,, FY 08-09 $0.30, FY 09-10 = $0.40, FY 10-11 = $0.50, FY 11-12 = $0.80 and err FY 12-13 = $0.80 Water Use Trends "'' Used same water use trends as those in CY 2007. The average monthly water use for a residential customer with a 5/8 x 3/4 inch water meter dropped to 9,000 gallons per month in CY 2007 from 10,000 gallons in CY 2006. For this analysis 9,000 gallons were used as the average monthly water use. Other Revenue ,,,,► Based on FY 08-09 proposed budget. Did not project increases as misc. charges fluctuate (NSF fees, reconnect fees, sewer billing, stormwater billing, plan review) Beginning Cash Balance mr Refer to Beginning Cash Balance Worksheet. 41, Interest Income r► The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% 41, and 4.0% for all remaining years. (refer to Interest Income Worksheets) 41. Personnel Costs 4ir Based on Utility's proposed budget for FY 08-09, added 1 new FTE in • in all remaining years, annual increases of 6% for COLA/Merit all years • Potable O&M Based on Utility's proposed budget for FY 08-09; 2.5% inflation for all remaining years. FY 08-09 includes cost increase for Tucson Electric Power'sro osed rate increase. p p Reclaimed O&M • Based on Utility's proposed budget for FY 08-09; FY 08-09 begin serving 2 El Conquistador golf courses with reclaimed, water purchased increases by 1,000 AF, 2.5% inflation for all remaining years. S Al- S • 40 40 PREFERRED FINANCIAL SCENARIO 4. ASSUMPTIONS FOR ENTERPRISE FUND • (continued) 4110 ''` CAP Capital Costs , ► Based on 10,305 AF at rate schedule revised by CAP 8/2/07. CAP Treatment & Delivery Costs Assumed that direct delivery of CAP water will begin in January 2013. 40 Costs estimated by P. Saletta using data from Carollo Study dated July 2007 r CAP Recharge Costs ,,, Based on rate schedule revised by CAP 8/2/07 as follows: 40 FY 08-09=4,000 AF FY 09-10=4,000 AF FY 10-11=4,000 AF FY 11-12=2,500 AF No recharge in FY 12-13 when CAP deliveries begin. to CAGRD Costs to Based on S. Seng worksheet and rate schedule recommended by CAP 9/20/07. Debt Service P&I debt service for 1999-2003 bonds taken from amortization schedules "' provided by Stone &Youngberg (S&Y). Air P&I debt service for 2003 Sr. Lien Bonds taken from amortization schedules provided by S&Y. P&I debt service for 2005 Excise Tax Bonds taken from amortization 41` schedule provided by S&Y. ter' P&I debt savings for 2007 Refunding taken from schedules provided by S&Y. to P&I debt service for proposed 2008 Excise Tax Bonds is an estimated annual payment for the Water Utility's portion of the Municipal Operations Center. Information was provided by Stacey Lemos, Finance Director and Stone & Youngberg. P&I debt service for proposed 2010 Sr. Lien Bonds was estimated by S. Seng using $7,000,000 at 5.0% for 20 years. ,, Debt Service Coverage ma Established at 1.30 by Mayor& Council Water Policies Capital Improvements • Projects are identified in 5-Year CIP and Potable Water System Master Plan. S • •• S S S S A-2 S 4, 411 '' PREFERRED FINANCIAL SCENARIO ar ASSUMPTIONS FOR AWRDIF FUND Ir Orr Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) 41, (based on current housing trends) to FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact err fees (320 x 1.25 =400) (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants, 2007) 40 AWRD Impact Fees dr Increase to $5,182 per EDU phased-in over 5 years, Ordinance No. (0) 07-32 Revenue FY 08-09 revenue derived from 78 EDUs at $1,300 plus 234 EDUs at $2,270 FY 09-10 revenue derived from 100 EDUs at $2,270 plus 300 EDUs at $3,240 FY 10-11 revenue derived from 100 EDUs at $3,240 plus 300 EDUs at $4,210 FY 11-12 revenue derived from 100 EDUs at $4,210 plus 300 EDUs at $5,182 „ r► FY 12-13 revenue derived from 400 EDUs at $5,182 Potable GPF Rates (cost per 1,000 gallons) FY 08-09 = $0.55, FY 09-10 = $0.75, FY 10-11 =$1.00, FY 11-12 = $1.30 and °"'"'' FY 12-13 = $1.30 48, Reclaimed GPF Rates (cost per 1,000 gallons) FY 08-09 =$0.30, FY 09-10 = $0.40, FY 10-11 = $0.50, FY 11-12 = $0.80 and 40 FY 12-13 = $0.80 Water Use Trends 4" Used same water use trends as those in CY 2007. The average monthly water use for a residential customer with a 5/8 x 3/4 inch water meter dropped to 9,000 gallons per month in CY 2007 from 10,000 gallons in CY 2006. For this analysis 9,000 gallons were used as the average monthly water use. Beginning Cash Balance Orr Refer to Beginning Cash Balance Worksheet. Interest Income The average interest rate for the Local Government Investment Pool over the 's'' past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) 4IW Debt Service P&I debt service for 2003 bonds (reclaimed phase 1)taken from amortization schedules provided by Stone & Youngberg. '` P&I debt service for 2007 WIFA loan(reclaimed phase 2) estimated by S. Seng „► using $5,000,000 at 3.536% interest over 20 years. P&I debt service for CAP project estimated by Stone & Youngberg with project costs 411, identified in the Carollo Study July dated 2007 "'''' Debt service for reallocation of 3,557 AF of CAP water was provided by CAWCD. Reclaimed Capital Improvements Projects are identified in 5-Year 4ITP A-3 +tw • 411, PREFERRED FINANCIAL SCENARIO ASSUMPTIONS FOR PWSDIF FUND Ar ar Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) (based on current housing trends) FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact ,,, fees (320 x 1.25 =400) (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants,2007) or PWSD Impact Fees 41P Increase impact fees to $2,567 per EDU effective 10/01/07, Ordinance No. (0) 07-31. ,r► Revenue orFY 08-09 revenue derived from 312 EDUs at at $2,567 Revenue for all remaining years derived from 400 EDUs at $2,567. "' Series 2003 bonds are completely used by end of FY 09-10 a► Beginning Cash Balance Refer to Beginning Cash Balance Worksheet. 411, Interest Income The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% • and 4.0% for all remaining years. (refer to Interest Income Worksheets) • Debt Service • P&I debt service for 2003 bonds (expansion related projects)taken from amortization schedules provided by Stone & Youngberg. • No further financing is projected. Capital Improvements Capital projects (growth related) are identified in the Potable Water System Master Plan • and the 5-Year CIP. • • • 410 • • • i • i • • A-4 410 AV s AIF ✓ 410 ar 11, APPENDIX B ay Preferred Financial Scenario 4111, AV B-1 Enterprise Fund •r B-3 Alternative Water Resources Development Impact Fee Fund • B-4 Potable Water System Development Impact Fee Fund B-5 Summary of All Funds s s s • • s • Ar 4. • s s AY 40 4r s ✓r AY +m .r h M vr O CO tt 0 0 r- M N CO 0 Ln 0 N- 0 N O r- 0 N O N O Ln N N N Ln 0 V) LnOMC) aoti Ln000O ONvtN COO Ntti ,- tiLnNLnN- ,- n- N CO CO O C) N- N. O O N- ' O 0) ti Ln CO O Ln O ' V' O COCO OM COO to N vt CO ':t CO O N CO Ln v- .,- C\ CO Ln ,- ti CO O v- O Ln CO- CO- 5 _ co.-M O CON 0) �- r- r- O O O O 00 ti co-�- CO O• �t CO 00 O N00 Ln CO LO N. N v. in '� 00 N- M '4t r Co CO cc O CO N ,- Ln O N- CO CO N- CO r- N N LU CO CO Nr r- CO r CM Ln CO N- O O 'C- 0) C) M ti r- N N' Ln N r- CO -t• Ln CD N M N Lei co- Nis N co-co- ,_ v. 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CO CO CO 69 Z Z Z ZW I I t l I I I I I- w LO LO LO LO LO Q F- 0 H0) 0) 0) 0) 0) w W N- N M •:r Q fi Q O LO V' M N W 2 Et cC i: cY ___I O L: N- N CO �. */ 0 _ W W w W - � I < O O O O O :,� U = _ F OOOOO ' co F Zw M M M CO CO Lu co it _ CC. Q IY Q CC.co 0 d- 0co 00 N �-- LO W J tY ( r- N Z I co < J U N M 4F O W ta m 2 E Ilik o O � I- 0- (I) ZI 0000 cnQ z _ � 0000 0 W = O O o Z 0 0 C 0 _J V LU J ( 0 0 0 0 WO CO W U) < Ln o LO o < 0 < 0 0 (NI i- ti CO U 111.0 • C-8 • • dr s s 40, APPENDIX D '' Rate Schedules Other Service Fees & Charges 41, '` D-1 Meter Installation Fees D-3 Convenience Fees Oro Valley Water Utility Proposed Meter Installation Fees Proposed Meter Fees Including AMR Technology Meter Size Meter Type Current Fees Proposed Fees Amount of Increase 5/8 x 3/4 standard $ 150.00 $ 247.00 $ 97.00 3/4 x 3/4 standard $ 175.00 $ 251.00 $ 76.00 1 standard $ 200.00 $ 319.00 $ 119.00 1.5 standard $ 390.00 $ 750.00 $ 360.00 1.5 irrigation (turbo) $ 560.00 $ 1,000.00 $ 440.00 2 standard $ 560.00 $ 918.00 $ 358.00 2 irrigation (turbo) $ 550.00 $ 1,258.00 $ 708.00 2 high use (compound) $ 1,365.00 $ 1,760.00 $ 395.00 3 irrigation (turbo) $ 875.00 $ 1,530.00 $ 655.00 3 high use (compound) $ 1,700.00 $ 2,200.00 $ 500.00 4 irrigation (turbo) $ 1,600.00 $ 2,838.00 $ 1,238.00 4 high use (compound) $ 2,750.00 $ 3,537.00 $ 787.00 6 irrigation (turbo) $ 3,240.00 $ 4,662.00 $ 1,422.00 6 high use (compound) $ 4,925.00 $ 6,360.00 $ 1,435.00 8 irrigation (turbo) T & M $ 6,473.00 N/A Meter installation fees are paid by developers at the time a new meter is purchased. Meter installation fees are subject to 8.1% sales tax. The proposed fees include the cost of meter plus labor costs to install. Detailed information on each meter size may be found on Page D-2 Proposed Meter Fees Excluding AMR Technology Meter Size Meter Type Current Fees Proposed Fees Amount of Increase 5/8 x 3/4 standard $ 150.00 $ 150.00 $ - 3/4 x 3/4 standard $ 175.00 $ 175.00 $ - 1 standard $ 200.00 $ 200.00 $ - 1.5 standard $ 390.00 $ 610.00 $ 220.00 1.5 irrigation (turbo) $ 560.00 $ 860.00 $ 300.00 2 standard $ 560.00 $ 778.00 $ 218.00 2 irrigation (turbo) $ 550.00 $ 1,118.00 $ 568.00 2 high use (compound) $ 1,365.00 $ 1,620.00 $ 255.00 *4y 3 irrigation (turbo) $ 875.00 $ 1,390.00 $ 515.00 011i 3 high use (compound) $ 1,700.00 $ 2,060.00 $ 360.00 4 irrigation (turbo) $ 1,600.00 $ 2,698.00 $ 1,098.00 11. 4 high use (compound) $ 2,750.00 $ 3,397.00 $ 647.00 • 6 irrigation (turbo) $ 3,240.00 $ 4,522.00 $ 1,282.00 6 high use (compound) $ 4,925.00 $ 6,220.00 $ 1,295.00 8 irrigation (turbo) T & M $ 6,333.00 N/A • • D-1 Oro Valley Water Utility Meter Installation Costs Total Labor Total Total Meter Personnel Hours to Cost Labor Labor& Meter Size Meter Type Meter AMR Equip. Costs Required Install Per Hour Costs Materials 5/8 x 3/4 standard $ 92.00 $ 140.00 $ 232.00 1 0.50 $ 30.00 $ 15.00 $ 247.00 3/4 x 3/4 standard $ 96.00 $ 140.00 $ 236.00 1 0.50 $ 30.00 $ 15.00 $ 251.00 1 standard $ 149.00 $ 140.00 $ 289.00 1 1.00 $ 30.00 $ 30.00 $ 319.00 1.5 standard $ 550.00 $ 140.00 $ 690.00 2 1.00 $ 30.00 $ 60.00 $ 750.00 1.5 irrigation(turbo) $ 800.00 $ 140.00 $ 940.00 2 1.00 $ 30.00 $ 60.00 $ 1,000.00 2 standard $ 688.00 $ 140.00 $ 828.00 2 1.50 $ 30.00 $ 90.00 $ 918.00 2 irrigation(turbo) $1,028.00 $ 140.00 $1,168.00 2 1.50 $ 30.00 $ 90.00 $ 1,258.00 2 high use(compound) $1,530.00 $ 140.00 $1,670.00 2 1.50 $ 30.00 $ 90.00 $ 1,760.00 3 irrigation(turbo) $1,270.00 $ 140.00 $1,410.00 2 2.00 $ 30.00 $ 120.00 $ 1,530.00 3 high use(compound) $1,940.00 $ 140.00 $2,080.00 2 2.00 $ 30.00 $ 120.00 $ 2,200.00 4 irrigation(turbo) $2,428.00 $ 140.00 $2,568.00 3 3.00 $ 30.00 $ 270.00 $ 2,838.00 4 high use(compound) $3,127.00 $ 140.00 $3,267.00 3 3.00 $ 30.00 $ 270.00 $ 3,537.00 6 irrigation(turbo) $3,982.00 $ 140.00 $4,122.00 4 4.50 $ 30.00 $ 540.00 $ 4,662.00 6 high use(compound) $5,680.00 $ 140.00 $5,820.00 4 4.50 $ 30.00 $ 540.00 $ 6,360.00 8 irrigation(turbo) $5,613.00 $ 140.00 $5,753.00 4 6.00 $ 30.00 $ 720.00 $ 6,473.00 Assumptions: Sensus Meter&AMR equipment costs quoted by Dana Kepner. Average meter reader labor is$26.71 per hour including 33% benefits. Rounded labor costs to$30.00 per hour to include costs for gasoline, uniforms, phones, &administration. 0 0 0 0 • D-2 0 i 411, ar s Oro Valley Water Utility 410, 411, 4/, Convenience Fees Credit Card Transactions by Telephone s s s 4111, s 4. s • Current Convenience Fee: N/A Proposed Convenience Fee: $1.50 s • • Supporting information may be found on Page D-4 410 • • D-3 40 4, ;err Credit Card Transactions with Customer Present Task Time: 2 minutes 401. 410 Swipe card in machine irr Follow directions on screen If direction on screen asks, enter last 4 digits of credit card#, ENTER Key in payment amount, do not use decimal point, ENTER r Press YES for second customer receipt ''` *YES/ENTER is large Green Key at bottom of pad * NO/Cancel is large Yellow key at bottom of pad If tax question appears on screen always use 0 for No Tax Have customer sign MERCHANT COPY (initial on back) ' Give customer the CUSTOMER COPY with your initials on back dip Enter payment and authorization code in NOTES Paper clip Merchant Copy to payment stub or credit card payment form Leave payment stub with credit card receipt in basket ar Credit Card Transactions by Telephone Task Time: 6 - 8 minutes Locate customer account in system r Fill out credit card payment form *Always get the credit card billing ADDRESS and ZIP CODE Ask customer to stay on the line until payment has been processed Enter credit card number, ENTER Key in expiration date (MMYY), ENTER Screen will say "Take Imprint of Card", Press ENTER 41, Press 0, for NO for no card present ` If asked for V Code—this is the 3 or 4 digit (security#) on back of credit card, ENTER ,, Key in $ amount of payment, Enter When screen asks for address it means the credit card billing address (NUMBERS ONLY) ENTER Key in credit card billing zip code, ENTER 411, Screen will say DIALING, then EXACT MATCH, OR Address Zip Mismatch Capture? Yes or No - ALWAYS press YES Press NO for 2nd receipt ''a` Return to customer on phone and give them the Authorization# on CC receipt Enter payment and authorization code in NOTES Initial back of Merchant Copy and clip to credit card payment form Leave payment stub with credit card receipt in basket mr 4vr 401 D-4 i • r r IF APPENDIX E IF dr IF Alternate Financial Scenario 411, • E-1 Assumptions for Alternate Financial Scenario +r E-5 Proforma: Enterprise Fund E-7 Proforma: AWRDIF Fund E-8 Proforma: PWSDIF Fund 4I, E-9 Proforma: Summary of All Funds E-11 Potable Water Rate Schedule • E-12 Reclaimed Water Rate Schedule 4V E-13 Tables for Bill Comparisons by Meter Size s s • • • s • • • • ar rrr 41e rr a s +r ,► ALTERNATE FINANCIAL SCENARIO ASSUMPTIONS FOR ENTERPRISE FUND err Orn F Growth FY 08-09: 250 new connections for water rates (based on current housing trends) FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates ,,, (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants, 2007) Water Rate Structure to 4 Tiers—existing rate structure; changes to usage allowed in some of the tiers to bring into conformance with AWWA capacity ratios. Water Rate Increases AY FY 08-09 =2.5%, FY 09-10 = 7%, FY 10-11 =7%, FY 11-12 = 11% and FY 12-13 = 8% (same increases in base & commodity rates) '"'' Construction Water Rate $1.00 more than Tier 4 in each year ,,, Potable GPF Rates (cost per 1,000 gallons) FY 08-09 = $0.55, FY 09-10 = $0.75, FY 10-11 =$1.00, FY 11-12 = $1.30 and 411 FY 12-13 = $1.30 Reclaimed GPF Rates (cost per 1,000 gallons) to, FY 08-09 =$0.30, FY 09-10 = $0.40, FY 10-11 = $0.50, FY 11-12 = $0.80 and FY 12-13 = $0.80 41, Water Use Trends • `' Used same water use trends as those in CY 2007. The average monthly water use for a residential customer with a 5/8 x 3/4 inch water meter dropped to 9,000 gallons per month in CY 2007 from 10,000 gallons in CY 2006. For this analysis 9,000 gallons were used as the average monthly water use. '`' Other Revenue Based on FY 08-09 proposed budget. Did not project increases as misc. ,, charges fluctuate (NSF fees, reconnect fees, sewer billing, stormwater billing, plan review) 41 Beginning Cash Balance Refer to Beginning Cash Balance Worksheet. ''' Interest Income AlOr The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% to Interest Income and 4.0% for all remaining years. (refer Worksheets) ✓ Personnel Costs dr Based on Utility's proposed budget for FY 08-09, added 1 new FTE in in all remaining years, annual increases of 6% for COLA/Merit all years Potable O&M to Based on Utility's proposed budget for FY 08-09; 2.5% inflation for all remaining years. FY 08-09 includes cost increase for Tucson Electric Power's proposed rate increase. w Reclaimed O&M Based on Utility's proposed budget for FY 08-09; FY 08-09 begin serving 2E1 Conquistador iir golf courses with reclaimed, water purchased increases by 1,000 AF, 2.5% inflation for all s'' remaining years. AY E-1 4P 4, 41. ter► ALTERNATE FINANCIAL SCENARIO ASSUMPTIONS FOR ENTERPRISE FUND 41, 40 (continued) 411, CAP Capital Costs err Based on 10,305 AF at rate schedule revised by CAP 8/2/07. CAP Treatment & Delivery Costs ito Assumed that direct delivery of CAP water will begin in January 2013. Costs estimated by P. Saletta using data from Carollo Study dated July 2007 41, CAP Recharge Costs Based on rate schedule revised by CAP 8/2/07 as follows: 411, FY 08-09=4,000 AF FY 09-10=4,000 AF FY 10-11=4,000 AF FY 11-12=2,500 AF 41, No recharge in FY 12-13 when CAP deliveries begin. d'' CAGRD Costs Based on S. Seng worksheet and rate schedule recommended by CAP 9/20/07. Debt Service P&I debt service for 1999-2003 bonds taken from amortization schedules "'` provided by Stone &Youngberg (S&Y). 411, P&I debt service for 2003 Sr. Lien Bonds taken from amortization schedules ,, provided by S&Y. 41 P&I debt service for 2005 Excise Tax Bonds taken from amortization 41, schedule provided by S&Y. P&I debt savings for 2007 Refunding taken from schedules provided by S&Y. ,,, , P&I debt service for proposed 2008 Excise Tax Bonds is an estimated annual payment for the Water Utility's portion of the Municipal Operations Center. Information was provided by Stacey Lemos, Finance Director and Stone & Youngberg. P&I debt service for proposed 2010 Sr. Lien Bonds was estimated by S. Seng ,► using $7,000,000 at 5.0% for 20 years. err, Debt Service Coverage Established at 1.30 by Mayor& Council Water Policies 411, Capital Improvements Projects are identified in 5-Year CIP and Potable Water System Master Plan. 411 4W r r 4111, 41, 4W 4/0 41, E-2 41,► 4V 4, ALTERNATE FINANCIAL SCENARIO ASSUMPTIONS FOR AWRDIF FUND isf Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) (based on current housing trends) FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact fees (320 x 1.25 = 400) (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants,2007) AWRD Impact Fees Increase to $5,182 per EDU phased-in over 5 years, Ordinance No. (0) 07-32 Revenue FY 08-09 revenue derived from 78 EDUs at $1,300 plus 234 EDUs at$2,270 FY 09-10 revenue derived from 100 EDUs at$2,270 plus 300 EDUs at $3,240 isy FY 10-11 revenue derived from 100 EDUs at $3,240 plus 300 EDUs at $4,210 FY 11-12 revenue derived from 100 EDUs at $4,210 plus 300 EDUs at $5,182 FY 12-13 revenue derived from 400 EDUs at $5,182 Potable GPF Rates (cost per 1,000 gallons) for FY 08-09 = $0.55, FY 09-10 = $0.75, FY 10-11 =$1.00, FY 11-12 = $1.30 and FY 12-13 = $1.30 Reclaimed GPF Rates (cost per 1,000 gallons) FY 08-09 =$0.30, FY 09-10 = $0.40, FY 10-11 = $0.50, FY 11-12 = $0.80 and FY 12-13 = $0.80 Water Use Trends 40 Used same water use trends as those in CY 2007. The average monthly water use for a residential customer with a 5/8 x 3/4 inch water meter dropped to 9,000 gallons per month in CY 2007 from 10,000 gallons in CY 2006. For this analysis 9,000 gallons were used as the average monthly water use. 4` Beginning Cash Balance ▪,,,, Refer to Beginning Cash Balance Worksheet. Interest Income flY The average interest rate for the Local Government Investment Pool over the dr past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) Debt Service P&I debt service for 2003 bonds (reclaimed phase 1) taken from amortization schedules provided by Stone & Youngberg. P&I debt service for 2007 WIFA loan (reclaimed phase 2) estimated by S. Seng ,, using $5,000,000 at 3.536% interest over 20 years. P&I debt service for CAP project estimated by Stone & Youngberg with project costs identified in the Carollo Study dated July 2007 40, Debt service for reallocation of 3,557 AF of CAP water was provided by CAWCD. ,�,► Reclaimed Capital Improvements Projects are identified in 5-Year CIP. 410 411, 4r E-3 411. err dr ALTERNATE FINANCIAL SCENARIO 40. ASSUMPTIONS FOR PWSDIF FUNDgir Growth FY 08-09: 250 new connections for water rates, 312 EDUs for impact fees (250 x 1.25 = 312) (based on current housing trends) FY 09-10, 10-11, 11-12 & 12-13: 320 new connections for water rates, 400 EDUs for impact fees (320 x 1.25 =400) (based on Homebuilding Forecast by John Strobeck, Bright Future Business Consultants, 2007) dr PWSD Impact Fees ''` Increase impact fees to $2,567 per EDU effective 10/01/07, Ordinance No. (0) 07-31. Revenue FY 08-09 revenue derived from 312 EDUs at at $2,567 411, Revenue for all remaining years derived from 400 EDUs at $2,567. Series 2003 bonds are completely used by end of FY 09-10 Beginning Cash Balance ,, Refer to Beginning Cash Balance Worksheet. 410 Interest Income The average interest rate for the Local Government Investment Pool over the past two years is 4.57%. Based on recent trends, the interest rate in FY 08-09 is 3.5% and 4.0% for all remaining years. (refer to Interest Income Worksheets) Debt Service P&I debt service for 2003 bonds (expansion related projects) taken from 411'' amortization schedules provided by Stone & Youngberg. err No further financing is projected. 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F- W 0 0 0 0 0 O < 0 c Z � � LnNr � � Z 0 W Q CL N (Ni N (Ni N LU0 ce w ce W ' U) W 0W ca U 11J Q ((I) CL Z 5 <• -1 - 0 0 z0 J � � fu Lo- Wca < I- Q ce 6 6 6 6 6 I- 2 Z w11,-.) ,- C6 ‘-- C6 r- ZQ CC D NLUN- Q U O z • � CO Q - W � a- N Q Q Q w p CO CO 00 CO CO o Z z Z I w Ln Ln Ln Lf) Ln H () w 0 6) 6 6 6) Z W II II II II H0 H N- (N N- (N N- Q N CO N' Q Q O CO 0) (0 N WLU2 fYCCCC � -J0 � � NCO O - W W W W - �- N CO d- o o I I I I m Q Q 0 0 0 0 0 = O o O o 0 0 2 1 H F z C`7 C`7 c6 c6 C`7 w w C6 C6 (6 CO CO J › Lf) I ( 1- co O co N i- cnry � lw— D NcOd- O W � Q my • 2 II f2 a 0 W H O o 0 0 0 O o Z o 0 0 0 U Q Z - I 0 0 0 0 D O 0 0 Z 6 0 0 0 LLI 0 W J U 0 0 0 L6 ci L6 0 }- O� m 0 E-18 2 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 17, 2008 TO: HONORABLE MAYOR & COUNCIL FROM: Roxana Garrity, Deputy Town Clerk SUBJECT: PUBLIC HEARING— APPROVAL OF AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR T,ICFNSF FOR SPOTT.IGT TS GRIT t LOCATED AT 1335 W. LAMBERT LANE, #101 SUMMARY: An application by Ms. Cheryl Salamon and principal has been submitted for a Series 12 (Restaurant) Liquor License for Spotlights Grill located at 1335 W. Lambert Lane. In accordance with Section 4-201 of the Arizona Revised Statutes, the application was posted for 20 days commencing July 23, 2008 on the premises of the applicants' property. No protests were received during that time period. Chief of Police Daniel Sharp has conducted a background investigation on the applicants and has no objections to the approval of the Series 12 Liquor License. (Series 12 Liquor License Description: Allows the holder of a restaurant license to sell and serve spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food.) ATTACHMENTS: 1. Memorandum from Police Department 2. Liquor License Application 3. Arizona Department of Liquor Licenses and Control Description SUGGESTED MOTION: I move to recommend approval of the issuance of the Series 12 Liquor License to the Arizona State Liquor Board for Ms. Cheryl Salamon and principal at Spotlights Grill located at 1335 W. Lambert Lane, #101. Department Head atot4;1 Town Manager } X42 41$9! ..%i 11000 N.La Canada Dr. db, 7:„ q s' Oro Valley,Arizona 85737 h► Phone(520)229-4900 FAX(520)797-2616 b ‘111wDANIEL G.SHARP,Chief of Police4 . . www.ovpd.org A Aks 1 A1\ t:4A— O0NDEDA91 ORO VALLEY POLICE DEPARTMENT "FAIRNESS, INTEGRITY, EXCELLENCE" TO: Kathryn Cuvelier FROM: •. Daniel G. Sharp RE: Background Investigation, Application for Liquor License Spotlights Grill 1335 W. Lambert Lane#101 On August 13, 2008, the Oro Valley Police Department completed the standard background check on Spotlights Grill LLC along with Agent Cheryl Salamon and Principal Christina Crow. The Oro Valley Police Department has no objection for the issuance of a liquor license to Spotlights Grill at 1335 W. Lambert Lane #101. p:,,,,. ..,,,.,,,,:.1 - ARIZONA DEPARTMENTOF LIQUOR LICENSES & CONTROL ti v , ,.::,,,,,,,.,:,:,,,...,:14:,. a Ak�_gqSi , vtA�a�'� C+'� Sti t ��k K �''.. Y>..th'.Z r^ .2 rk hr SL.•`.:>.xevY,.,'.y„ha ` Skh 400 W Congress #521 800 W Washington 5th Floor 2��x ' Y� `} ' '" kti �C�t��°`` �i>a.,,{}. 'i3.•�`;"yeti 3 �like ''^'r. .j. Tucson AZ 85701-1352 �,>�3#�• kms;.•"�,� <. y:•,;5,,..� �;•. :fi, {_•P hoen ix AZ 85007-2934 :� : ::, , �. k.:.,i. :{,. •... , ,.,:R1• ,v3a' �Y2:,Q:Y%:�''''.y:::.•`yR aMix.•�NfY,.:>' i�.j:Xn' ::`•:� "r' �+{....O ��x•..v:�"Y,>.•a•>'k '2'�+,'::.�Y{v' ..�:: {.. ati xc; >.:ar,3,'�... ...• .�A"<;�f::,'-�.�`.::;SY iwn5,:e$�::: "a�.'a:'•. 2X�.f .�Y}er ,;�• .•.h.y•��.�..�.4• X,. - 542-5141 : :•' �� .: �Y }� k�' • v (520) 628 6595 (602) Y'� Y J,,��f? � .�. a s+a N.��a��>•a:N;yca::•:^�;+ X '+� 'WIN x Kix.n'4- X>�-,q�;K�`�•:'�'+' a w1..� ..:,Ki+�,•a {,� Y�` Y. Y��'\:IK K � �:� .Y.:; '�S'j:::`1ii`.'r;.J} $�.` 77 :; yY•. �+ay+"'f '.. +.•''F+3,}:.C� ,:`p ...i1 J:.:k�i Y::':4:WWW.•:: it. .. j,'� ::. ati,>'+n p� ::`Fe:;C , ,{u: < >.. t ,....;,,,:e .c:•:" .f APPLICATION FOR LIQUORLICENSE ` ,iii is<. ;.., :.. r'..` y>:: 5:2��+ Rti,.,...:>x, �'�::;;� 1;"4:' s XY.�i'}� :$i '?�''•�v,:r:. .. off•;<,y h ; go, ; .�,,, •fid' / > <�,3�.5. fY• r4 .,y, ,{� •�"i{r.};. wK:��:.':X:•.. e:s.::4:,::,A,,,o!.0,,,,-:" :;.!:,::a.tn:,:teo A:Orf:rit..., TY-Pt:4d. RIP RI I IN K Notice: Effective Nov.1,1997,All Owners,Agents,PartneriStockho(ders,Officers,or:.Marnagers actively involved in the day to day operations of the business must attend a Department approved liquo+"law trainingcourse or provide proof of attendance within the last five years. See page 5 of the Liquor Licensing requirements. ° NNV SECTION 1 This application is for a: t ;s}: SECTION 2 Type of ownership: ❑ INTERIM PERMIT Complete Section 5 El J.T.W.R.O.S. Complete Section 6 C NEW LICENSE Complete Sections 2, 3, 4, 13, 14, 15, 16, 17 El INDIVIDUAL Complete Section 6 El PERSON TRANSFER (Bars& Liquor Stores ONLY) ❑ PARTNERSHIP Complete Section 6 Complete Sections 2, 3, 4, 11, 13, 15, 16, 17 ❑ CORPORATION Complete Section 7 ❑ LOCATION TRANSFER (Bars and Liquor Stores ONLY) lir LIMITED LIABILITY CO. Complete Section 7 Complete Sections 2, 3, 4, 12, 13, 15, 16, 17 El CLUB Complete Section 8 ❑ PROBATE/WILL ASSIGNMENT/DIVORCE DECREE ❑ GOVERNMENT Complete Section 10 Complete Sections 2, 3, 4, 9, 13, 15, 17(fee not required) El TRUST Complete Section 6 ❑ GOVERNMENT Complete Sections 2, 3, 4, 10, 13, 15, 16, 17 ❑ OTHER Explain SECTION 3 Type of license and fees: LICENSE#: . --103 OüS Department Use Only 1. Type of License: 11,, 2. Total fees attached: $ APPLICATION FEE AND INTERIM PERMIT FEES (IF APPLICABLE) ARE NOT REFUNDABLE. A service fee of$25.00 will be charged for all dishonored checks (A.R.S. 44.6852) SECTION 4 Applicant: (All applicants must complete this section) 7t(D� 57J( 1. ApplicantlAgent's Name: Ms. 's (1\-ht C.'r �.) C e/r) (Insert one name ONLY to appear on license) .` ast, Fir t .` Middle 2. Corp./Partnership/L.L.C.: ... 11 • [U (Exactly as i appears on Artic es of Inc.or Articles of Org.) C b I-cos-1 1 3. Business Name: B cp OA- 1 f--)appears on the exterior of premises)(DI 4. Business Address: L3 \- 031c1- ff1 - 737 (Do not use PO Box Number) City COUNTY Zip 5. Business Phone: ( �,�; LA '7 Residence Phone: 6. Is the business located within the incorporated limits of the above city or town? -'Y S ❑NO 7. MailingAddress-l - 1 k_o_covt„\?,,V Lac\e \ c_ \( 1, \j\r2. (-JD I I City State Zip 8. Enter the amount paid for a 06, 07, or 09 license: $ (Price of License ONLY) DEPARTMENT USE ONLY Accepted b : 67'et A, Date: -, -I - Lic. # \d-, ID GI Dp y 3 Fees: I O0- cl A.,n Application Interim Permit Agent Change Club F. Prints TOTAL PROCESSING APPLICATIONS TAKES APPROXIMATELY 90 DAYS,AND CIRCUMSTANCES OFTEN RESULT IN A LONGER WAITING PERIOD. You ARE CAUTIONED REGARDING PLANS FOR A GRAND OPENING,ETC.,BEFORE FINAL APPROVAL AND ISSUANCE OF THE LICENSE. LIC 0100 05/2004 *Disabled individuals requiring special accommodation, please call (602) 542-9027. 1 SECTION 5 Interim Permit: 1. If you intend to operate business while your application is pending you will need an Interim Permit pursuant to A.R.S. 4-203.01. 2. There MUST be a valid license of the same type you are applying for currently iss -: to the location. 3. Enter the license ntuber currently at the location. 4. Is the license currently I se? El YES 111 NO • If no, how long has seen out of use? ATTACH THE LICENSE CURREN . ISSUED AT THE LOCATI. 4 TO THIS APPLICATION. . jeofili - , 1, er\ , declare that I am the CURRENT OWNER,AGENT, CLUB (Print full name) MEMBER, PARTNER, ST*.. _.DER OR LICENS • of . e stated license and location. foregoing a••licati• ���� 4,,,---,_ Pivvtg g State of County of Wa... ...\1I/AIIILIPI__ The foregoing instrument was acknowledged - . g g g d before me this (Sign e) 7,411111411111W id) jU day of ` � god V ERIC JUDD _ tta� Year 4,-,-L),..4..,..0.,..6\ Nc LaryPublic-Arizona ;Y,,, l'- E ___ Mo At Pima County ,� • ____________?----M012 w My commission expires on: . ,. My;Commission Expires _ "�'' �' n � eptem.er•, X11 ^f_ --� . �n,1;�; _.=-(Signatu re ofNOTARY-PUBLIC) ,r". SECTION 6 Individual or Partnership Owners: EACH PERSON LISTED MUST SUBMIT A COMPLETED FORM"L160-101",AN"APPLICANT"TYPE FINGERPRINT CARD,AND$29 FEE FOR EACH CARD. 1. Individual: log) Last First Middle %Owned Residence Address City State Zip 1 _• Partnership Name: (Only the first partner listed will appear on license) General-Limited Last First Middle %Owned Residence Address City State Zip ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ L _ (ATTACH ADDITIONAL SHEET IF NECESSARY) 2. Is any person, other than the above, going to share in the profits/losses of the business? ❑ YES El NO If Yes, give name, current address and telephone number of the person(s). Use additional sheets if necessary. Last First Middle Residence Address City,State,Zi. Telephone# 2 AZ Dept Liquor License & Control Page 1 of 1 .. .?xv, `_ '. ... ` ..... ......... ... ......................... yew, ,� si,lArizonaDepartmento • : qUuu1 &€ k1ndCoutrl t sy� li� SS.p >`Y !!�w.,v �.ua,owa:� Y�R\v4kM« v.\7:'�, ��w. . . a,�q,,, b,,.M� r.: t .�F ,c; inad ` a� v.A"*, � .� �\ ?` • Ai. ar „� ,:r , aL ; ' hx; t. �. » 4400 . 41 4.!; r C4„, w '::,..'•.:',• -•- ti.*•41,404,,,,z,n,r• , Y a ` '^Qo?�? ` . ' w \ . . a `Nn. .:4 LOCI In You Are Here:Home > licensing > series > 12 • \`.,; .• ' '` ° License Types: Series 12 Restaurant License : About Non-transferable , v : History On-sale retail privileges i. : I...eaderchip.Yearn . . Note:Terms in BOLD CAPITALS are defined in the glossary. �l 0 : Information 6 License . h ..0tiMOO:PURP SE: ¢: ? :.• Training + „' t: ,ra'::.T K : Laws Allows the holder of a restaurant license to sell and serve spirituous liquor solely for consumption .;.,:.',,,,,,,e,,,, on the premises of an establishment which derives at least forty percent(40%)of its gross : Renewal`, revenue from the sale of food. : Query Lottery Random ADDITIONAL RIGHTS AND RESPONSIBILITIES: Selection Drawing : License Lottery RESULTS : Liquor Board An applicant for a restaurant license must file a copy of its restaurant menu and Restaurant Wednesday April 30, Operation Plan with the application.The Plan must include listings of all restaurant equipment and 2008 F.A.Q. service items,the restaurant seating capacity,and other information requested by the department to substantiate that the restaurant will operate in compliance with Title 4. Lottery Drawing : Glossary of Terms Wednesday April 30, : Forms The licensee must notify the Department,in advance,of any proposed changes in the seating 2008 capacity of the restaurant or dimensions of a restaurant facility. : Employment 2008 Disclosed Location : Contact A restaurant licensee must maintain complete restaurant services continually during the hours of Lottery Entry form selling and serving of spirituous liquor, until at least 10:00 p.m.daily, if any spirituous liquor is to be sold and served up to 2:00 a.m. 2008 Undisclosed Location On any original applications, new managers and/or the person responsible for the day-to-day Lottery Entry Form operations must attend a basic and management training class. 2008 A licensee acting as a RETAIL AGENT,authorized to purchase and accept DELIVERY of Entry Form spirituous liquor by other licensees, must receive a certificate of registration from the Department. Instructions A PREGNANCY WARNING SIGN for pregnant women consuming spirituous liquor must be posted within twenty(20)feet of the cash register or behind the bar. A log must be kept by the licensee of all persons employed at the premises including each employee's name,date and place of birth,address and responsibilities. Bar, beer and wine bar,and restaurant licensees must pay an annual surcharge of$20.00.The money collected from these licensees will be used by the Department for an auditor to review compliance by restaurants with the restaurant licensing provisions of ARS 4-205.02. AVERAGE APPROVAL TIME: Sixty-five(65)to one-hundred five(105)days. PERIOD OF ISSUANCE: One(1)year with option to renew. FEES: Non-refundable application fee: $100.00 Fingerprint fee per card: Contact Department Interim Permit fee: $100.00 Upon approval: Final fees(full year): $2,000.00 Final fees(half year): $1,750.00 Annual renewal fee(includes SURCHARGE): $585.00 ARIZONA STATUTES AND REGULATIONS: ARS 4-119,4.201,4-202,4-203,4-205.02,4-205.06,4-209(B)(12),4-209(D)(12),4-209(3),4- 213,4-222,4-261; Rule R19-1-214, R19-1-231. Copyright 2007-Arizona Department of Liquor License&Control-Privacy Policy-Accessibility 800 W.Washington 5th floor;Phoenix,AZ 85007-400 W.Congress#521;Tucson,AZ 35701 (4111111W http://www.azliquor.gov/licensing/series/12.asp 07/23/2008 TOWN OF ORO VALLEY Page 1 of 2 �'OUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 17, 2008 TO: HONORABLE MAYOR AND COUNCIL FROM: SUZANNE SMITH, BUILDING SAFETY DIRECTOR SUBJECT: ORDINANCE NO. (0) 08- 19 ADOPTION OF 2008 TOWN OF ORO VALLEY POOL AND SPA CODE. SUMMARY: The Town is currently enforcing the Town of Oro Valley Pool/Spa Code, 1991 Edition. Traditionally, the Town and the other jurisdictions in the Greater Tucson region have followed a three year code adoption procedure since 1976;however, our Pool/Spa Code has not been updated in seventeen years. Over the last year, the 1991 Town of Oro Valley Pool/Spa Code has been under review by Town staff. The final draft version was distributed to several pool company owners and members of the construction industry for review and comment. As a result, the 2008 Town of Oro Valley Pool and Spa Code has been updated. The changes are primarily due to: 1. Life and health safety issues 2. Conformity with current editions of companion building codes adopted by the Town 3. Construction technology 4. Local community issues (kw 5. Errors in printed code The purpose of this Ordinance is to formally adopt the 2008 Town of Oro Valley Pool and Spa Code . Approval will provide further assistance in protecting the health, safety and welfare of the citizens of the Town of Oro Valley, Arizona, and to help prevent mishaps in the use of pools and spas constructed within the Town's boundaries. Approval will also assist in providing conformity with the other codes currently adopted by the Town, making it easier to understand and reduce conflicts between the codes. FISCAL IMPACT: There is no fiscal impact to the Town as a result of approving this ordinance. RECOMMENDATION: Staff recommends that the Mayor and Council approve Ordinance No. (R)08- 19 , the adoption of the 2008 Town of Oro Valley Pool and Spa Code, attached in Exhibit A. SUGGESTED MOTION: Lmove to approve Ordinance No. (0) 08- 19 , the adoption of the 2008 Town of Oro Valley Pool and Spa Code, attached in Exhibit A. TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION MEETING DATE: SEPTEMBER 17, 2008 ATTACHMENT: 1) Ordinance No. (0) 08- 19 and Exhibit A attached thereto. ar Alas Suzanne Smith, ilding Safety Di ctor • ene Watson, Assistant Town Manager /--)4444) askt€4.-‘, David Andrews, Town Manager ORDINANCE NO. (0) 08 - 19 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA AMENDING CHAPTER 6, SECTION 6-5-1 ENTITLED "SWIMMING POOL CODE" OTHERWISE KNOWN AS THE "2008 TOWN OF ORO VALLEY POOL AND SPA CODE"; AND REPEALING ALL RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; AND PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER WHEREAS, the Town of Oro Valley is a political subdivision of the State of Arizona vested with all associated rights, privileges and benefits and is entitled to the immunities and exemptions granted municipalities and political subdivision under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, pursuant to ARS § 41-1346, this Ordinance is a public record with three copies of "Swimming Pool Code", otherwise known as the "2008 Town of Oro Valley Pool and Spa Code" on file in the office of the Town Clerk; and WHEREAS, on December 6, 1995, the Town Council approved Ordinance No. (0) 95-85, which adopted that certain document entitled, "Oro Valley Town Code, Chapter 6, "Building" as (100., the sixth chapter of the official Town Code; and WHEREAS, Chapter 6, Swimming Pool Code, Section 6-5-1 is the Town of Oro Valley's Swimming Pool Code; and WHEREAS, on August 6, 2008, the Town Council adopted Resolution No. (R) 08-60, making that certain document entitled the "Swimming Pool Code" otherwise known as the "2008 Town of Oro Valley Pool and Spa Code" a public record; and WHEREAS, changes made to the Swimming Pool Code were primarily due to life and safety issues, conformity with current editions of companion building codes adopted by the Town, construction technology, local community issues, and errors in printed codes. NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro Valley, Arizona that the certain document, known as "Swimming Pool Code" otherwise known as the "2008 Town of Oro Valley Pool and Spa Code" is hereby adopted. NOW THEREFORE, BE IT FURTHER ORDAINED by the Mayor and Council of the Town of Oro Valley as follows: Section 1. Oro Valley Town Code Section 6-5-1 is hereby amended with deletions in striket,rough and additions in all CAPS as follows: 6-5-1 Swimming Pool Code That certain code entitled THE TOWN OF ORO VALLEY'S ADOPTED SWIMMING POOL CODE IS THE 2008 TOWN OF ORO VALLEY POOL AND SPA CODE, Town of Oro Valley Pool/Spa Code, 1991 Edition published by the Town of Oro Valley, 1991, is hereby adopted and made a part of this chapter the same as though said code was specifically set forth in full herein; and at least three copies of WHICH ARE ON FILE said code shall be filed in the office of the TOWN CLERK OF THE TOWN OF ORO VALLEY, ARIZONA. clerk and kept available for Section 2. 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 3. If any section, subsection, sentence, clause, phrase or portion of this Ordinance 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. PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona, this 77th day of Septembeit , 2008. TOWN OF ORO VALLEY Paul H. Loomis, Mayor ATTEST: Kathryn E. Cuvelier, Town Clerk Date: APPROVED AS TO FORM: Tobin Rosen, Town Attorney Date: