The URL can be used to link to this page

Home My WebLink AboutPackets - Council Packets (859) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION June 6, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL EXECUTIVE SESSION - 1. Pursuant to ARS 38-431.03(A)(3) and (A)(4) discussion and consultation with its attorneys for legal advice regarding contract negotiations. 2. Pursuant to ARS 38-431.03(A)(4) to discuss and consult with its attorneys for legal advice regarding litigation and settlement discussions. 3. Pursuant to ARS 38-431.03(A)(4), (A)(5) and (A)(7) to discuss and consult with its attorneys for legal advice regarding contract negotiations. REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS COUNCIL REPORTS DEPARTMENT REPORTS The Mayor and Council may consider and/or take action on the items listed below: ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING INFORMATIONAL ITEMS CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town 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. PRESENTATIONS 1.Proclamation - Men's Health Month CONSENT AGENDA (Consideration and/or possible action) A.Minutes - May 9 and May 16, 2018 B.Greater Oro Valley Chamber of Commerce Quarterly Report: January 1, 2018 - March 31, 2018 C.Visit Tucson Quarterly Report: January 1, 2018 - March 31, 2018 D.Resolution No. (R)18-21, authorizing and approving an intergovernmental agreement between the Town of Oro Valley and Pima County regarding payment for the incarceration of municipal prisoners E.Resolution No. (R)18-22, approving an assignment agreement for the Mercado Del Rio River Walk Trailhead, located on the western lot in the Mercado Del Rio Commercial Center, near the northwest corner of Oracle Road and Pusch View Lane F.Cancellation of the June 20, 2018 regular Town Council meeting G.Resolution No. (R)18-23, approving an intergovernmental agreement amendment for the continued provision of animal control services between the Town of Oro Valley and Pima County H.Resolution No. (R)18-24, approving a Memorandum of Understanding (MOU) for fiscal years 2018/19 and 2019/20 between the Town of Oro Valley and the Public Safety Employee Group I.Resolution No. (R)18-25, adopting and approving updates to the Financial and Investment Policies of the Town of Oro Valley J.Appointment to the Planning and Zoning Commission (PZC) REGULAR AGENDA 1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 10 (BEER AND WINE STORE) LIQUOR LICENSE FOR CIRCLE K STORE #2741614, LOCATED AT 10410 N. LA CANADA DRIVE 2.PUBLIC HEARING: ORDINANCE NO. (O)18-09, DISCUSSION AND POSSIBLE ACTION REGARDING 2.PUBLIC HEARING: ORDINANCE NO. (O)18-09, DISCUSSION AND POSSIBLE ACTION REGARDING A REZONING REQUEST FROM R1-144 TO R1-10 FOR A 16.1-ACRE PROPERTY LOCATED NEAR THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CANADA DRIVE, INCLUDING A REQUEST TO UTILIZE THE REDUCED LOT WIDTH AND REDUCED BUILDING SETBACK FLEXIBLE DESIGN OPTIONS 3.AMENDING CHAPTER 25, SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT A. RESOLUTION NO. (R)18-26, DECLARING THE PROPOSED ZONING CODE AMENDMENT TO SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT, PROVIDED IN EXHIBIT "A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE CLERK, A PUBLIC RECORD B. PUBLIC HEARING: ORDINANCE NO. (O)18-10, AMENDING SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT 4.PRESENTATION OF FIVE-YEAR FINANCIAL FORECAST THROUGH FY 2022/23 5.PUBLIC HEARING: RESOLUTION NO. (R)18-27, APPROVING THE ADOPTION OF THE FINAL BUDGET OF THE TOWN OF ORO VALLEY FOR FISCAL YEAR 2018/19, INCLUDING APPROVAL OF THE 10-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) FROM FY 2018/19 THROUGH FY 2027/28 FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H) CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card. ADJOURNMENT POSTED: 5/30/18 at 5:00 p.m by pp When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Town Council during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Town Council on any item(s) on this agenda, please complete a speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience”, please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Mayor announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. Please organize your speech, you will only be allowed to address the Council once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience” you may address the Council on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. Town Council Regular Session 1. Meeting Date:06/06/2018 Proclamation - Men's Health Month Information Subject Proclamation - Men's Health Month Summary Attachments Proclamation Town Council Regular Session A. Meeting Date:06/06/2018 Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Minutes - May 9 and May 16, 2018 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve, (approve with the following changes) the May 9 and May 16, 2018 minutes. Attachments 5-9-18 Draft Minutes 5-16-18 Draft Minutes 5-9-18 Minutes, Town Council Budget Study Session 1 MINUTES ORO VALLEY TOWN COUNCIL BUDGET STUDY SESSION May 9, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE BUDGET STUDY SESSION AT OR AFTER 4:00 PM CALL TO ORDER Mayor Hiremath called the meeting to order at 4:01 p.m. ROLL CALL PRESENT: ABSENT: Satish Hiremath, Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Steve Solomon, Councilmember Mary Snider, Councilmember PLEDGE OF ALLEGIANCE Mayor Hiremath led the audience in the Pledge of Allegiance. BUDGET STUDY SESSION AGENDA 1.FY 2018/19 TOWN MANAGER’S RECOMMENDED BUDGET DEPARTMENT OVERVIEWS Mayor Hiremath announced the first budget presentation would be from the Community and Economic Development Department, followed by the Public Works Department, then the Parks & Recreation Department and the Capital Improvement Program (CIP). Community and Economic Development Department Community and Economic Development Interim Director Bayer Vella gave an overview of the proposed Community and Economic Development Department budget that included the following: - Community and Economic Development - Department Work 5-9-18 Minutes, Town Council Budget Study Session 2 - Department Budget Summary (FY 18-19) - Department Work - Strategic Plan: Economic Development - Strategic Plan: Complete Community - Strategic Plan: Land Use and Design Following the presentation, there were questions and comments from Council regarding the proposed Community and Economic Development Department budget. Public Works Department Public Works Director Paul Keesler gave an overview of the proposed Public Works budget that included the following: - Department Budget Summary - Public Works Department - Public Works Administration - Engineering Division - Operations Division - Transit Service - Stormwater Utility - Public Works Following the presentation, there were questions and comments from Council regarding the proposed Public Works Department budget. Parks and Recreation, including Community Center and Golf Project Parks and Recreation Director Kristy Diaz-Trahan gave an overview of the following proposed Parks and Recreation budget highlights: - Strategic Plan Implementation - Parks & Recreation Department - Administration Division - Aquatics Division - Recreation & Cultural Division - Park Maintenance Division - General Fund Program Expenditures - Community Center - Troon Operations - Community Center Fund Following the presentation, there were questions and comments from Council regarding the proposed Parks and Recreation budget. Ms. Diaz-Trahan continued the presentation and gave an overview of the following 5-9-18 Minutes, Town Council Budget Study Session 3 Community Center and Golf Project budget highlights: - Community Center and Golf Project Ms. Diaz-Trahan introduced Klindt Breckenridge, representing the Breckenridge Group, Public Works Director Paul Keesler and Troon Head Superintendent Tyler Rasmussen. Mr. Breckenridge gave an overview of the proposed redesign concept for the Oro Valley Community Center and included the following: - Ground Floor Reconfiguration - 2nd Floor (Overlook) Reconfiguration - Outdoor Flex-Space Proposed Area - Outdoor Flex-Space Concept - Main Golf Pro-Shop/Overlook Entrance Modification Mr. Keesler continued the presentation and included the following: - Community Center Reconfiguration Details Mr. Rasmussen continued the presentation and included the following: - Golf Course Improvements Detail Town Manager Mary Jacobs concluded the presentation and gave an overview of the proposed funding source(s) for the Community Center and Golf project. Discussion continued amongst Council, staff, Mr. Breckenridge and Mr. Rasmussen regarding the proposed Parks and Recreation budget. Capital Improvement Program Senior Budget Analyst Wendy Gomez gave an overview of the following proposed CIP information highlights: - Capital Improvement Program (CIP) - FY 18/19 CIP - Streets and Roads - FY 18/19 CIP - Water System - FY 18/19 CIP - Public Safety, Parks & Recreation - FY 18/19 CIP - Stormwater, Vehicles, Other Following the presentation, there were questions and comments from Council regarding the proposed Capital Improvement Program. ADJOURNMENT 5-9-18 Minutes, Town Council Budget Study Session 4 MOTION:A motion was made by Councilmember Hornat and seconded by Vice Mayor Waters to adjourn the meeting at 6:45 p.m. MOTION carried, 7-0. _________________________ Michelle Stine, CMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the budget study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 9th day of May, 2018. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2018. _____________________________ Michael Standish, CMC Town Clerk 5/16/18 Minutes, Town Council Regular Session 1 MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION May 16, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Hiremath called the meeting to order at 6:00 p.m. ROLL CALL PRESENT:Satish Hiremath, Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember PLEDGE OF ALLEGIANCE Mayor Hiremath led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Town Clerk Mike Standish announced the upcoming Town meetings. COUNCIL REPORTS Councilmember Joe Hornat attended the Davis-Monthan Air Force Base DM50 Annual Meeting and Farewell Dinner for Colonel Scott Campbell. Councilmember Hornat recognized Davis-Monthan Air Force Base for their annual contribution of $2.3 billion dollars in money spent throughout the community. Councilmember Hornat also recognized Oro Valley resident Dick Johnson for organizing the DM50 Golf Tournament Fundraiser for initiatives to improve the quality of life for military personnel at Davis-Monthan Air Force Base. DEPARTMENT REPORTS No reports were received. 5/16/18 Minutes, Town Council Regular Session 2 ORDER OF BUSINESS Mayor Hiremath re-organized the agenda as follows: Regular Agenda Item #2 would be heard first followed by Item #1 with remaining items following in order. INFORMATIONAL ITEMS There were no informational items. CALL TO AUDIENCE Oro Valley resident Geri Ottoboni voiced her concerns regarding Pima County taxes and the Oro Valley Community Center. Oro Valley resident Mike Zinkin voiced his concerns regarding correspondence between a councilmember and a resident. PRESENTATIONS 1.Proclamation -Kids to Parks Day Mayor Hiremath proclaimed May 19, 2018 as Kids to Parks Day in the Town of Oro Valley. Parks and Recreation Director Kristy Diaz-Trahan accepted the proclamation. 2.Presentation - 2018 Transportation Art by Youth Summer Program Matt Rolland, Arts Integration Coordinator with The Southern Arizona Arts and Cultural Alliance (SAACA), gave an overview of the program and outlined the following: - Transportation Art by Youth - What is the TABY Program? - Selected Artist Administrators Hiro Tashima and Jason Butler - Past Artist Works - Youth From Oro Valley, AZ - 2018 Location - 2018 Conceptuals - Brainstorming From Students - Next Steps Feedback from Council and the community was encouraged by contacting SAACA. 5/16/18 Minutes, Town Council Regular Session 3 CONSENT AGENDA Councilmember Rodman requested that item (B) be removed from the Consent Agenda for discussion. Councilmember Hornat requested that item (D) be removed from the Consent Agenda for discussion. A.Minutes - May 2, 2018 C.Appointments to the Historic Preservation Commission (HPC) MOTION:A motion was made by Councilmember Snider and seconded by Vice Mayor Waters to approve Consent Agenda items (A) and (C). MOTION carried, 7-0. B.Fiscal Year 2017/18 Financial Update through March 2018 Councilmember Rodman requested an overview of Fiscal Year 2017/18 from staff. Finance Director Stacey Lemos presented an overview of the Fiscal Year 2017/18 Financial Update through March 2018. Discussion ensued amongst Council and staff regarding item (B). MOTION:A motion was made by Councilmember Rodman and seconded by Vice Mayor Waters to approve Fiscal Year 2017/18 Financial Update through March 2018. MOTION carried, 7-0. D.Resolution No. (R)18-18, authorizing "The First Amendment to Communications Site Lease Agreement" ("Amendment") to clean up the Lease and reduce the price and lease escalation rate Councilmember Hornat asked for clarification on the reduced rate. Town Manager Mary Jacobs explained the rate reduction. MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Rodman to approve Resolution No. (R)18-18, authorizing the Amendment to the existing Cingulair telecommunications facility and associated Memorandum of Lease. MOTION carried, 7-0. 5/16/18 Minutes, Town Council Regular Session 4 REGULAR AGENDA 2. AMENDING SECTION 28 OF THE ORO VALLEY ZONING CODE REGARDING THE ALLOWED USES AND SIZES OF ELECTRONIC MESSAGE BOARDS ON MONUMENT SIGNS a. RESOLUTION NO. (R)18-17, DECLARING THE PROPOSED ZONING CODE AMENDMENT TO CHAPTER 28 RELATED TO ELECTRONIC MESSAGE BOARDS, PROVIDED IN EXHIBIT “A” WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE CLERK, A PUBLIC RECORD MOTION: A motion was made by Vice Mayor Waters and seconded by Councilmember Snider to approve Resolution No. (R)18-17, declaring the proposed amendments to Chapter 28, related to electronic message boards, in the Oro Valley Zoning Code within the attached resolution and filed with the Town Clerk, a public record. MOTION carried, 7-0. b. PUBLIC HEARING: ORDINANCE NO. (O)18-08, AMENDING CHAPTER 28 OF THE ORO VALLEY ZONING CODE ALLOWING ELECTRONIC MESSAGE BOARDS ON MONUMENT SIGNS FOR PRIVATE SCHOOLS AND RELIGIOUS INSTITUTIONS Senior Planning Technician Patty Hayes gave an overview of item #2b and outlined the following: - Purpose - Purposed Size of Electronic Message Board - Example of Message Board Sizes - Proposed Sign Uses - Existing Use - Existing Code Standards - General Plan - Planning and Zoning Commission Discussion ensued amongst Council and staff regarding item 2b. Mayor Hiremath opened the public hearing. The following individual spoke in support of item 2b. Tom Crozier, Oro Valley resident and member of Vistoso Community Church. Mayor Hiremath closed the public hearing. Discussion continued amongst Council and staff regarding item #2b. 5/16/18 Minutes, Town Council Regular Session 5 MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Rodman to approve Ordinance No. (O)18-08, amending Chapter 28 of the Oro Valley Zoning Code, allowing electronic message boards for private schools and religious institutions subject to the following conditions. 1) The message board size to be 50% instead of the recommended 35%. MOTION carried, 7-0. 1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING ORDINANCE NO. (O)18-07, REZONING FROM R1-144 TO PLANNED AREA DEVELOPMENT FOR APPROXIMATELY 199-ACRES LOCATED WEST OF LA CHOLLA BOULEVARD BETWEEN LAMBERT LANE AND NARANJA DRIVE AND 8.2-ACRES LOCATED ON THE NORTHWEST CORNER OF LA CHOLLA BOULEVARD AND NARANJA DRIVE Principal Planner Michael Spaeth gave an overview of item #1 and outlined the following: - La Cholla & Naranja/Lambert Rezoning - Purpose - Subject Property - Proposal - Background: General Plan Amendment - Background: Special Area Policies - Rezoning Request - Review tools - Rezoning Request - Planned Area Development - Rezoning Request - Development Scenarios - Rezoning Request - Code Modifications - Open Space - Recreation Areas - Schools - Water - Traffic Impacts Public Works Director/Town Engineer Paul Keesler continued with the overview and outline of item #1 - Traffic Impact Mitigation Measures - Traffic: Cañada Hills Drive - La Cholla Boulevard & Lambert Lane Principal Planner Michael Spaeth continued with the overview and outline of item #1 - Public Participation Process - Planning and Zoning Commission Conditions 5/16/18 Minutes, Town Council Regular Session 6 - Key Factors - Summary and Recommendation Discussion ensued amongst Council and staff regarding item #1. Paul Oland of The WLB Group, representing the applicant, gave an overview of item #1 and outlined the following: - Capella Planed Area Development - Map of planned area - Timeline of Neighborhood Outreach & Hearings for the General Plan Amendment (GPA 2014-2015 - Timeline of Neighborhood Outreach & Hearings for the Planned Area Development (PAD) 2016-2018 - Policy Highlights from Lengthy General Plan Amendment Negotiations - Additional General Plan Policies - Parcel B - General Plan Policies - Parcel B - Cross Section - Parcel D - General Plan Policies - Parcel D - Cross Section - Parcel H - General Plan Policies - Parcel J - General Plan Policies - Parcel M - General Plan Policies - Parcel M & Shannon 80 - Bufferyard Context - Open Space, Recreation & Trails Possible Amenities - Parcel C - Possible Amenities - Parcel F - Possible Amenities - Parcel G - Possible Amenities - Proposed Recreation Area Comparison to Wildlife Ridge Park - Policy Highlights from Lengthy General Plan Amendment Negotiations Mayor Hiremath opened the public hearing. The following individuals spoke in support of item #1. Oro Valley resident Jaime Bowers Oro Valley resident and President and CEO of the Greater Oro Valley Chamber of Commerce Dave Perry Oro Valley resident Darin Hoffmann Oro Valley resident Cody McGuire Oro Valley resident Rick Neter The following individuals spoke in opposition to item #1. Oro Valley resident Jason Todd Oro Valley resident Diana Sanderson 5/16/18 Minutes, Town Council Regular Session 7 David Lutz The following individuals spoke on item #1. Oro Valley resident Judy Huch Oro Valley resident Mike Sanderson Oro Valley resident Jan Cunningham Oro Valley resident Rosalie Roszak Mayor Hiremath closed the public hearing. Discussion continued amongst Council, staff and Mr. Oland regarding item #1. MOTION:A motion was made by Mayor Hiremath and seconded by Vice Mayor Waters to approve Ordinance No. (O)18-07, rezoning from R1-144 to Planned Area Development because the request is consistent with the Your Voice, Our Future General Plan, including the Specific Area Policies and all applicable Zoning Code standards and subject to the following conditions: Planning and Zoning Commission Conditions 1. All future site plans for each parcel will go through the Conceptual Site Plan process to be considered by the Planning and Zoning Commission as well as Town Council for further Review. 2. Complete an updated Traffic Impact Analysis for each development phase as required by Town Code. 3. The western lots (lots 1-11) on Parcel B shall be limited to single-story should the parcel develop as residential (Parcel B concept 5). 4. The plans for restrooms and playgrounds in recreation areas must be maintained. 5/16/18 Minutes, Town Council Regular Session 8 5/16/18 Minutes, Town Council Regular Session 9 PLANNING Page 52 5. Revise development standard d.ii.5 to reflect a minimum front setback of 15-feet with at least 20 provided for driveway length. 6. Remove first part of development standard d.ii.6 to reflect existing maximum building height permitted in the R1-7 zoning district. Page 58 7. Revise development standard d.ii.3 to reflect a minimum front setback of 15-feet with at least 20 provided for driveway length. Page 60 8. Revise development standard d.ii.3 to reflect a minimum front setback of 15-feet with at least 20 provided for driveway length. 9. Remove first part of development standard d.ii.4 to reflect existing maximum building height permitted in the R1-7 zoning district. Page 63 10. Revise development standard d.ii.3 to reflect a minimum front setback of 15-feet with at least 20 provided for driveway length. 11. Remove first part of development standard d.ii.4 to reflect existing maximum building height permitted in the R1-7 zoning district. Page 144 12. Remove reference to restroom structures in section 2.A.v. as they are not a permitted use in ESOS areas. ENGINEERING 13. Off-site public roadway improvements shall be completed by the developer as identified within the project Traffic Impact Analysis Report (TIA) submitted with the Capella PAD. Minimum improvements required as identified within the TIA consist of the following: a. Cañada Hills Drive/La Cholla Boulevard intersection: The installation of a traffic signal and associated intersection improvements to prohibit both eastbound and westbound through traffic across La Cholla Boulevard. The through traffic restriction will satisfy the Capella Special Area Policy intended to prevent new development traffic from accessing Cañada Hills Drive from the west side of La Cholla Boulevard. Timing of the signal installation and associated intersection improvements shall coincide with construction of any PAD development area or construction of the proposed roadway creating the new west leg of the intersection, whichever occurs first, when warranted. 5/16/18 Minutes, Town Council Regular Session 10 b. Lambert Lane/Shannon Road intersection: The installation of additional turn/through lanes and/or a traffic signal (when warranted). The geometric design of the intersection and timing of the improvements shall be as approved by Pima County. c. Lambert Lane: The widening of Lambert Lane to accommodate two through lanes in the eastbound and westbound directions, from La Cholla Boulevard to the western project limits. Timing of the improvements shall coincide with the construction of Development Areas J, H and K as they develop. d. Other off-site improvements such as the construction of new right/left-turn lanes shall be constructed by the developer with each development area as warranted by the TIA and at no cost to the Town. 14. The owner(s) of the Capella development shall dedicate right-of-way along the project’s La Cholla Boulevard frontage as identified and requested during previous coordination meetings with Town staff. Dedication of the right-way is to be completed within 30 days of Town Council approval of this PAD request. 15. The owner(s) of the Capella development shall dedicate easements for the purposes of public drainage and slope encroachments along the project’s La Cholla Boulevard frontage as identified and requested during previous coordination meetings with Town staff. Dedication of the easements are to be completed within 45 days of Town Council approval of this PAD request. Mr. Keesler requested verbiage to be added to Engineering Condition 13a regarding the traffic signal at La Cholla and Cañada Hills, of when warranted. Mayor Hiremath stated the traffic signal would go in when warranted. Discussion continued amongst Council, staff and Mr. Oland regarding item #1. MOTION carried, 7-0. Mayor Hiremath recessed the meeting at 9:19 p.m. Mayor Hiremath reconvened the meeting at 9:31 p.m. 3.PUBLIC HEARING: RESOLUTION NO. (R)18 -19, AUTHORIZING AND APPROVING INCREASES IN WATER RATES AND SERVICE FEES FOR THE TOWN OF ORO VALLEY WATER UTILITY Water Utility Director Peter Abraham gave an overview of item #3 and outlined the following: - Oro Valley Water Utility 5/16/18 Minutes, Town Council Regular Session 11 - Water Utility Enterprise Fund - Water rates analysis goals - Adapting to changing rate drivers - Adapting to changing consumer trends - Recommendations on water rates - The numbers - Potable water base rate comparisons - Monthly bill comparisons - Recommendation Mayor Hiremath opened the public hearing. No comments were received. Mayor Hiremath closed the public hearing. Discussion ensued amongst Council and staff regarding item #3. MOTION:A motion was made by Councilmember Piña and seconded by Councilmember Snider to approve Resolution No. (R)18-19 authorizing and approving increases in water rates and service fees for the Town of Oro Valley Water Utility. MOTION carried, 7-0. 4.PUBLIC HEARING: RESOLUTION NO. (R)18 -20, ADOPTION OF THE TENTATIVE BUDGET FOR FY 2018/19 AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2018/19 Town Manager Mary Jacobs gave an overview of item #4 and outlined the following: - Changes from Recommended Budget of $143.2M Finance Director Stacey Lemos continued with the overview of item #4 and outlined the following: - Budget Increase from FY 17/18 to FY 18/19 - FY 18/19 Revenue Sources - $142.9M - FY 18/19 Expenditure Categories - $142.9M - FY 18/19 Capital Improvement Program (CIP) - FY 18/19 General Fund Overview - Final Notes and Next Steps Discussion ensued amongst Council and staff regarding item #4. Mayor Hiremath opened the public hearing. 5/16/18 Minutes, Town Council Regular Session 12 The following individuals spoke on item #4. Oro Valley resident George Lindsay Oro Valley resident Paul Loomis Oro Valley resident Dick Johnson Oro Valley resident Frank Mayfield Mayor Hiremath closed the public hearing. Discussion continued amongst Council and staff regarding item #4. MOTION:A motion was made by Councilmember Rodman and seconded by Vice Mayor Waters to approve Resolution No. (R)18-20, adopting the Tentative Budget for fiscal year 2018/19 and setting the local alternative expenditure limitation for fiscal year 2018/19 at $142,906,231.00. MOTION carried, 7-0. FUTURE AGENDA ITEMS No future agenda items were requested. CALL TO AUDIENCE No comments were received. ADJOURNMENT MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Snider to adjourn the meeting at 11:01 p.m. MOTION carried, 7-0. Prepared by: ___________________________ Patti Perez Senior Office Specialist 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 May, 2018. I further certify that the meeting was duly called and held and that a quorum was present. 5/16/18 Minutes, Town Council Regular Session 13 Dated this _____ day of ____________________, 2018. ___________________________ Michael Standish, CMC Town Clerk Town Council Regular Session B. Meeting Date:06/06/2018 Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: Greater Oro Valley Chamber of Commerce Quarterly Report: January 1, 2018 - March 31, 2018 RECOMMENDATION: This report is for information only. EXECUTIVE SUMMARY: The FY 2015/16 Financial Participation Agreement (FPA) between the Town of Oro Valley and the Greater Oro Valley Chamber of Commerce (Chamber) stipulates that a quarterly report be compiled by the Chamber and submitted to the Economic Development division and Town Council. The enclosed report satisfies the FPA requirement for the third quarter of FY 2017/18. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The fiscal impact is $30,000 from the Bed Tax Fund. SUGGESTED MOTION: N/A Attachments Chamber FPA Chamber Q3 1 QUARTERLY PROGRESS REPORT Jan. 1-March 31, 2018 Submitted To: Amanda Jacobs, Economic Development Manager By: Dave Perry, President/CEO In accordance with Resolution No. (R) 15-41 A. Tourism, Visitors Services and General Information The Greater Oro Valley Chamber of Commerce has provided tourism and visitor’s services and information to Town residents and seasonal tourists and anyone indicating an interest in locating a business or residence in the Town over the past three months. Below is data on activity that the Chamber has addressed through this quarter:  January – 12 relocation packages mailed  February – 6 relocation packages mailed  March – 13 relocation packages mailed Business Recruitment, Retention and Outreach 1. The Chamber will continue to participate in the Town’s Business Retention and Expansion (BR&E) Program. During the quarter, the Chamber President / CEO participated in 3 business retention and expansion visits at Oro Valley Marketplace. We called on Best Buy, Tuesday Morning, Ulta, DSW, Dick’s Sporting Goods, Cost Plus World Market, Petco and Gracie Barra in late January, In’N’Out, Red Lobster, Olive Garden, San Carlos Grill and Century Theatres / Oro Valley Marketplace in early February, and Wal-Mart, GNC, Tangerine Dental, Chic Nail Boutique and Southern Arizona Urgent Care in late February. During March, we paid visits in Southern Oro Valley to Lane Family Chiropractic, Miniat and Wilson, Mattress Firm, Arizona Coin and Stamp, Axiom Tax and Accounting, Omni Construction Notices, Sunstreet Mortgage, Krystal Miles DDS, Bank of the West and Caldwell Jewelers. 2. The Chamber will provide two (2) $25 gift cards from local Oro Valley businesses for each Musical Magic for Kids Concert in honor of Bill Adler, who donated raffle prizes each month to this concert. We purchased $50 in gift cards in February at Blue Banana Frozen Yogurt, and $50 in March at McDonald’s / Oro Valley. 3. The Chamber shall work to assist the Town in emphasizing the importance of supporting local retailers/businesses through educational and promotional efforts and will display the following materials at the Chamber offices: Shop Oro Valley Program and other economic development related materials as deemed appropriate by the Chamber President/CEO and Economic Development Manager. The Chamber is currently displaying Joint Recreation Brochure and Map, Oro Valley Marketing Brochure, Parks and Recreation Guides and Vista Newsletter. 4. The Chamber President will write the ‘Business Spotlight’ bi-monthly content for the Vista Newsletter and Economic Development Division website. This quarter, the Chamber provided a story with photo about Healthy Skin Medical & Cosmetic Dermatology in February. It’s the last business profile for the town, which will now highlight all the new businesses opening each month. 2 Special Events 1. The Chamber hosted a customer service workshop with US Chamber Institute faculty members David Aaker of Palm Desert, Calif., and Pat McGaughey of Coeur d’Alene, Idaho, on Jan. 5 at El Conquistador Tucson, A Hilton Resort. The Chamber had 107 guests, and incurred $3,966.97 in expenses. Two town employees attended. 2. The Chamber provided lunch for 30 volunteers 3 times at the US senior and collegiate synchro swim championships at the Oro Valley Aquatic Center March 29-31. We spent $172.65 with Chili’s / Oro Valley (manager Kris Klein matched our purchase), $357.75 at Panera / Oro Valley, and $280.20 at Jersey Mike’s / Oro Valley, for total out-of-pocket expense of $810.60. 3. The Chamber will coordinate ribbon cuttings for new Oro Valley businesses. During the quarter, the Chamber cut ribbons at the newly remodeled McDonald’s, Oracle and Magee, on Jan. 26; Growler USA and Oro Valley Nail Spa on Feb. 9; Gracie Barra Jiu Jitsu / Oro Valley on March 3; Oro Valley Senior Community Center March 24; Dogtopia of Oro Valley March 25; the Quail Park of Oro Valley sales office March 27. We also helped with the distribution of coffee and pastries at the Lambert Lane ribbon cutting Jan. 10, and participated in the OneAZ Credit Union groundbreaking at First and Oracle. 4. During this Agreement, Town officials will attend Chamber breakfasts, luncheons and mixers free of charge as long as each official pre-registers for each event. Town official/staff attendance: January, 2; February, 4; March, 1. The Chamber hosted Coffee with The Mayor, 8:30-9:30 a.m. Friday, March 23, the Sunset Room, Oro Valley Community Center. Admission was free. We had 35 guests and incurred expenses of $50. 5. Annual Chamber membership dues to be paid by the Town shall be included as part of the monetary consideration of this Agreement. Additional Information The Chamber hosted a network development mixer with 71 guests at the Oro Valley Country Club on Feb. 1, and a network development mixer with 76 guests at Oro Valley Hospital March 8; held New Member Orientation with 20 guests at El Conquistador Tucson on Feb. 2; participated in an open house at Senior Home Care of Tucson (Rancho Vistoso) and Quail Park Oro Valley on Feb. 21; marked the 20th anniversary of Oro Valley Audiology with 53 guests on Feb. 22; supported an open house at Oro Valley business The Buttes at Reflections March 7; invited guests to Chamber Pi(e) Days Jan. 26 and March 14; publicized the Oro Valley visit of The Wall That Heals March 15-17. During the quarter, the Chamber’s Public Policy Committee hosted Chief Randy Karrer of the Golder Ranch Fire District, JTED’s Kathy Prather and the US Chamber’s Jennings Imel, as well as new Amphi Superintendent Todd Jaeger. Dave Perry and Alex Demeroutis met with Katie and Andy Kosecki from Which Wich Superior Sandwiches, and learned about their experiences with the permit review process in Oro Valley. Some of those thoughts were shared with town staff. Chamber staff and town officials met with representatives of Simpleview ahead of its move into Oro Valley office space. Town Council Regular Session C. Meeting Date:06/06/2018 Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: Visit Tucson Quarterly Report: January 1, 2018 - March 31, 2018 RECOMMENDATION: This report is for information only. EXECUTIVE SUMMARY: The FY 2015/16 Financial Participation Agreement (FPA) between the Town of Oro Valley and Visit Tucson stipulates that a quarterly report be compiled by Visit Tucson and submitted to the Economic Development staff and Town Council. The enclosed report satisfies the FPA requirement for the third quarter of FY 2017/18. An additional report is included to illustrate the Town's return on investment (ROI) from Visit Tucson during July 2017 - March 2018. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The fiscal impact is $275,000 from the Bed Tax Fund. SUGGESTED MOTION: N/A Attachments Visit Tucson FPA Visit Tucson Q3 Visit Tucson ROI QUARTERLY PROGRESS REPORT January through March 2018 Submitted To: Amanda Jacobs, Economic Development Manager By: Brent DeRaad, President & CEO In accordance with Resolution No. (R)15-42 Visit Tucson will initiate, implement and administer a comprehensive sales, promotion, and advertising program to attract an increasing number of convention delegates and vacationing tourists to the Town, thereby providing revenues to the community through transient rental and sales taxes, and contributing to the overall economic growth and continued viability of the tourism and hospitality industry. Below is data on activity that Visit Tucson has addressed through this quarter and fiscal year. Ongoing focuses for Visit Tucson will be attracting meetings and leisure travelers to El Conquistador Tucson and other Town hotels, bringing competitions to the Oro Valley Aquatic Center, endurance events to the Town, and marketing attractions, including El Conquistador Golf & Tennis and Tohono Chul Park. Key Measures of Performance Adopted FY 2017-18 Current Quarter FYTD 2017-18 FYTD 2016-17 Convention Sales Bookings 19 12 39 16 Room Nights 14,861 5,194 16,295 12,608 Economic Impact $4,828,542 $1,696,977 $5,749,943 $3,997,846 Sports Bookings 19 4 14 13 Room Nights 5,933 2,242 5,076 4,030 Economic Impact $2,585,052 $965,243 $2,506,615† $1,464,470 Travel Industry Sales Promote to Targeted Tour Operator Clients 1,000 422 1,154‡ 1,979 Impressions Via Tour Operator Catalogs 1,000,000 1,821,800 3,103,100 4,104,300 Marketing Users to Visit Tucson Website* 1,207,058 433,003 931,878 935,811 Users to Oro Valley microsite** 12,813 4,492 10,422 10,173 †The second quarter value was recalculated. ‡This measure includes all trade travel outreach. *16-17 reported unique visitors, not users. 17-18 users goal is 2% increase over 16-17 users, which was 1,183,390. YTD totals are by date range, not adding quarters, which eliminates duplicate users. **16-17 reported unique visitors, not users. 17-18 users goal is 2% increase over 16-17 users, which was 12,562. YTD totals are by date range, not adding quarters, which eliminates duplicate users. Visit Tucson’s 2017-18 Budgeted Revenue Budget Percentage City of Tucson: $4,610,123 50% Pima County: $3,465,882 38% Town of Oro Valley: $275,000 3% Pascua Yaqui Nation: $75,000 1% Tohono O’odham Nation: $75,000 1% Private Sector: $733,330 8% Total: $9,234,335 100% January – March 2018 Oro Valley Highlights Page 2 Additional 2017-18 Visit Tucson Performance Measures 1. Oro Valley will be featured in the Visit Tucson Official Travel Guide, along with the surrounding jurisdictions. Result: The 2018 Visit Tucson Official Travel Guide was distributed to partners, stakeholders, and visitors beginning the week of January 15, 2018. The guide includes information about Oro Valley and its tourism assets, including El Conquistador Tucson, El Conquistador Golf & Tennis, and the Oro Valley Aquatic Center. 2. Provide Oro Valley with a ½-page ad in the printed 2018 Official Travel Guide. Result: The printed 2018 Official Travel Guide includes a ½-page ad for Oro Valley, valued at $5,370. A full-page advertorial is also featured, valued at $8,900. 3. Promote Oro Valley events and attractions on Visit Tucson’s website and social media sites. Information will be provided by Economic Development division staff or by New Media Developer. Result: Sampling of social media posts: Visit Tucson January 19 The Views Golf Club at Oro Valley is one of several choices you’ll find featuring natural beauty combined with the spectacular scenery of the Santa Catalina Mountains. http://ow.ly/ik8o30hOuOA Town of Oro Valley - Government Visit Tucson January 29 Cruise the beautiful Town of Oro Valley - Government during the Oro Valley Cruise, BBQ & Blues event on Feb. 17th at the Oro Valley Marketplace! https://www.orovalleyaz.gov/…/cal…/cruise-blues-bbq-car-show #freeyourself January – March 2018 Oro Valley Highlights Page 3 Visit Tucson February 3 Red Lion Inn & Suites Tucson North - Foothills is a great place to anchor your Tucson adventures! Located on the north side, close to nature but also just a very short drive from modern amenities and shopping, the Red Lion offers a complimentary Hot Breakfast Buffet, Happy Hour, Wi-Fi, and an outdoor heated pool and hot tub. Dive in and unwind! #freeyourself http://ow.ly/OV1F30eB5ad Town of Oro Valley - Government Visit Tucson February 18 The Arizona Distance Classic Half Marathon event comes to Town of Oro Valley - Government on Mar. 11th! It's another great run through some of the loveliest country in Southern Arizona... more at the link! Hilton El Conquistador Golf & Tennis Resort http://ow.ly/yhkV30idyXI Visit Tucson March 1 2nd Saturdays Commerce Corral at Steam Pump Ranch (March 10th) in Town of Oro Valley - Government is a great way to spend a beautiful spring weekend morning! The Heirloom Farmers Markets are also happening then, and there really is something for everyone, from arts and crafts on exhibit to the freshest of produce. More at the link! http://ow.ly/fdo630iff8k January – March 2018 Oro Valley Highlights Page 4 Tucson AZ @VisitTucsonAZ March 16 The Loop Completion Celebration is tomorrow! Join us at Kino Sports Complex, Brandi Fenton Memorial Park, and Steam Pump Ranch in Oro Valley! #lovetheloop Follow the link for more details... @pimaarizona @TheOVChamber http://webcms.pima.gov/cms/One.aspx?portalId=169&pageId=384760 … Visit Tucson March 18 Our neighbors just to the north, Oro Valley, have a fantastic spate of outdoor activities for you to enjoy, from their Olympic-caliber Oro Valley Aquatic Center, the Oro Valley Community & Recreation Center with 36 holes of championship golf and tennis facilities, and countless wonderful hiking and biking trails through the Santa Catalina mountains. Learn more at the link! #freeyourself Town of Oro Valley - Government http://ow.ly/i1RT30iyYGq 4. Town officials may attend trade shows with Visit Tucson staff at the expense of the Town, except for the United States Sports Convention. Visit Tucson will cover the registration fees for Town officials with those fees counting toward the tourism-activities rebate to the Town. Result: Oro Valley staff and On Your Left Fitness joined Visit Tucson at our booth at the Rock & Roll Marathon Expo in Phoenix, January 13-14, 2018. All of the races produced by On Your Left Fitness and held in Oro Valley were promoted during the expo. January – March 2018 Oro Valley Highlights Page 5 5. Host http://visitorovalley.org and update the site based on information provided by the Economic Development Manager or New Media Developer. Provide quarterly reports with total unique users. Result: The January-March 2018 report is enclosed. A thorough list of accommodations, arts & entertainment, outdoor recreation and restaurants is listed on the website, which is incorporated into Visit Tucson’s website visittucson.org. Visit Tucson works with Town staff to update information on this website as needed. 6. Promote Oro Valley as a winter training destination for cycling and swimming on Visit Tucson’s website and social media sites. Result: Oro Valley is promoted as a winter training destination for cycling and swimming on several Visit Tucson webpages. • Winter training at Oro Valley Aquatic Center is featured at: https://www.visittucson.org/about/winter-training-capital/training/swimming and https://www.visittucson.org/winter-training • Oro Valley is featured as an ideal destination for cycling at: http://www.visittucson.org/about/winter-training-capital/training/cycling/ 7. Provide total tourism-based direct spending and total tourism-based impact numbers from Visit Tucson Sports events held in Oro Valley. Result: The economic impact from four sports events that were held in Oro Valley between January 1 – March 31, 2018 is $965,243 based on 813 visitors filling 2,242 room nights. 8. Scout Steam Pump Ranch and other Oro Valley destinations for film opportunities. Result: There wasn’t any new film scouting activity during the third quarter. 9. Provide information on equipment, crew and local suppliers, as needed, to producers of film, television and commercial projects considering shooting in Oro Valley. Result: Film Tucson provides information about Oro Valley on an ongoing basis to producers of independent films, commercials, reality television series and photo shoots, who are scouting locations in southern Arizona. 10. Rebate 5% ($13,750) of Oro Valley’s 2017-18 investment in Visit Tucson into tourism-related activities that benefit the Town. Result: Visit Tucson's cash investment in tourism activities that benefit the Town during the third quarter included $500 sponsorship of the 4th of July event. This brings the July 1, 2017 – March 31, 2018 total rebate to $5,500. In the fourth quarter, we anticipate MLS spring training will fulfill $5,000 of the 5% rebate and the Oro Valley business video we are creating will fulfill the balance of the rebate. Those totals will be confirmed in the fourth quarter report. January – March 2018 Oro Valley Highlights Page 6 11. Consult with Town staff & officials on marketing initiatives, Mexico marketing, sales, and other Visit Tucson initiatives. Result: We have ongoing conversations among Town staff and Visit Tucson’s marketing and sports personnel to discuss opportunities to promote the Town’s tourism attributes and book sports events. Oro Valley was featured in several high-visibility placements in the third quarter, including: • Golf Magazine Eblast January 2018 – Featured El Conquistador Golf; went out to 10,000 golf magazine subscribers in key markets. • Golf Magazine Print Advertorial February 2018 – Featured El Conquistador Golf in photo and in copy; circulation is 350,000. • Links Magazine Eblast January 2018 – Featured Oro Valley golf; went out to 25,000 subscribers. • iExplore.com February 2018 – Paid distribution of content article that features Oro Valley golf; more than 23,000 pageviews and 2,500 social media shares to-date. • Outside Magazine Bike Test February 2018 – Article and video featured mountain biking in Catalina State Park o https://www.outsideonline.com/2280536/book-your-winter-riding-trip-tucson-now o https://www.outsideonline.com/2282516/inside-outsides-bike-test Additional online articles within VisitTucson.org that feature Oro Valley include: Exploring the Valley of Gold Five Must-Hike Parks in Southern Arizona Farm to Fork, Ranch to Resort Health & Wellness Come Home See Tucson on “Top of the World” 12. One Town official will serve on Visit Tucson’s board of directors. Result: Vice Mayor Lou Waters is an active participant on Visit Tucson’s board of directors. Meetings Economic Impact: Per the convention sales metrics listed on page 1, the economic impact of 39 meetings booked between July 1, 2017 and March 31, 2018 by the El Conquistador Tucson and the Red Lion Inn & Suites from Visit Tucson leads is $5,749,943. Town of Oro Valley's ROI from Visit Tucson July 1, 2017 - March 31, 2018 Amount Description $5,749,943 From July 1, 2017 - March 31, 2018, El Conquistador Tucson and Red Lion Inn & Suites booked 39 meetings, representing 16,295 room nights, from Visit Tucson leads--estimated economic impact. $2,506,615 From July 1, 2017 - March 31, 2018, estimated economic impact associated with 14 sports events held in Oro Valley, representing 5,076 room nights. $5,370 Visit Tucson provided Oro Valley with a 1/2-page ad in the Visit Tucson visitors guide--value. $8,900 Visit Tucson provided Oro Valley with a full page of advertorial in Visit Tucson visitors guide--value. $5,500 Visit Tucson's cash investment in tourism activities that benefit the Town: Sponsorship of 4th of July event; Golf co-op marketing placements started in Oct. ‘17 and will run through March ’18. This includes print and digital placements via Golf Magazine, Links Magazine, Colorado Avid Golfer, and AZ Golf Insider, as well as some TV coverage. $8,276,328 Oro Valley's return from Visit Tucson--July 1, 2017 - March 31, 2018 $8,276,328 Oro Valley's Third Quarter return from Visit Tucson $275,000 Oro Valley's 2017-18 investment in Visit Tucson $30.10 Oro Valley's return for every $1 invested in Visit Tucson Not factored into the value above: *Bed- & sales-tax revenue generated *Leisure visitors spending money at Oro Valley hotels, resorts, attractions & retail based on Visit Tucson's overall destination promotion, which includes Oro Valley. *Host, update & help drive traffic to Oro Valley microsite (www.visitorovalley.org)--10,422 users, July 1, 2017 - March 31, 2018 *Visit Tucson staff time to market, sell & promote Oro Valley, & to calculate & report ROI & performance. Visit Tucson's marketing, convention sales & services, film, public relations, tourism, Mexico marketing & membership departments all work to benefit the Town & its tourism-related businesses. Town Council Regular Session D. Meeting Date:06/06/2018 Submitted By:Mike Standish, Town Clerk's Office Department:Administration Information SUBJECT: Resolution No. (R)18-21, authorizing and approving an intergovernmental agreement between the Town of Oro Valley and Pima County regarding payment for the incarceration of municipal prisoners RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The annual intergovernmental agreement with Pima County that permits the Town to house Oro Valley municipal prisoners in the Pima County jail is up for renewal as of June 30, 2018. Payment for incarceration of municipal prisoners in county jails is necessary because of a state law passed in 1989 mandating that cities and towns pay for this service. Pima County has set the incarceration fees for FY 2018/19 as follows: $324.98 to cover booking and intake expenditures and prisoner housing for the first day, and $99.79 per subsequent day for each prisoner. The initial day amount has increased by $9.80, and the cost for each additional day has increased by $4.85. The alternative is for the Town to house its own municipal prisoners, which would be cost prohibitive. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The FY 2018/19 Custody of Prisoners budget has been adopted in the amount of $150,000, and it is anticipated that this will be sufficient budget capacity even with the projected prisoner housing costs outlined above. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)18-21, authorizing and approving an intergovernmental agreement between the Town of Oro Valley and Pima County regarding payment for the incarceration of municipal prisoners. Attachments (R)18-21 Incarceration of Municipal Prisoners Incarceration of Municipal Prisoners IGA C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@800F298B\@BCL@800F298B.doc Town of Oro Valley Attorney’s Office/ca/062211 RESOLUTION NO. (R)18-21 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND PIMA COUNTY FOR PAYMENT FOR THE INCARCERATION OF MUNICIPAL PRISONERS WHEREAS,pursuant to A.R.S. § 11-952, the Town of Oro Valley is authorized to enter into or renew agreements for joint and cooperative action with other public agencies; and WHEREAS, the Town of Oro Valley is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240 (B)(12); and WHEREAS,pursuant to A.R.S. § 31-121(D), an individual may be incarcerated in a county jail and the costs of incarceration shall be paid by the municipality having established the municipal court in which the charges have been filed; and WHEREAS,Pima County shall receive and detain all municipal prisoners who are medically fit to be incarcerated in the detention facilities maintained and operated by Pima County; and WHEREAS, the Town desires to enter into an Intergovernmental Agreement with Pima County to set forth the terms and conditions for the incarceration of municipal prisoners in the detention facilities maintained and operated by Pima County; and WHEREAS,it is in the best interest of the Town to enter into the Intergovernmental Agreement, attached hereto as “Exhibit “A” and incorporated herein by this reference, in order to set forth the terms and conditions relating to the incarceration of municipal prisoners in the detention facilities maintained and operated by Pima County for a term effective July 1, 2018 through June 30, 2019. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the Intergovernmental Agreement, attached hereto as “Exhibit “A”, between the Town of Oro Valley and Pima County for the incarceration of municipal prisoners is hereby authorized and approved. BE IT FURTHER RESOLVED that the Mayor and any other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as are necessary to execute and implement the terms of the Intergovernmental Agreement. C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@800F298B\@BCL@800F298B.doc 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 6th day of June, 2018. TOWN OF ORO VALLEY, ARIZONA Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date:Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@800F298B\@BCL@800F298B.doc 3 EXHIBIT “A” Town Council Regular Session E. Meeting Date:06/06/2018 Requested by: Bayer Vella Submitted By:Milini Simms, Community and Economic Development Department:Community Development & Public Works Information SUBJECT: Resolution No. (R)18-22, approving an assignment agreement for the Mercado Del Rio River Walk Trailhead, located on the western lot in the Mercado Del Rio Commercial Center, near the northwest corner of Oracle Road and Pusch View Lane RECOMMENDATION: Staff recommends approval of this administrative action to ensure the Town-owned trailhead improvements and ongoing maintenance. EXECUTIVE SUMMARY: The purpose of this request is to consider the proposed assignment agreement (Attachment 1) for donating funds and establishing ongoing maintenance responsibilities and future improvements of the Mercado Del Rio River Walk Trailhead. This is being done so the applicant can fulfill conditions of the Final Plat dedication. The trailhead is located on the western block of the Mercado Del Rio Commercial Center, near the northwest corner of Oracle Road and Push View Lane (Attachment 2). The Final Plat for the commercial center (approved in 2005) dedicated the trailhead property to the Town of Oro Valley and required the applicant to develop the trailhead once Lot 5 was developed or the portion of the multi-use path connecting to the trailhead was completed, whichever occurred first. The required improvements to the trailhead have been completed by the applicant, except for installing a drinking fountain. However, the applicant is proposing to donate funds to the Town for installing a water fountain and water meter in the future. Details of this donation and stipulations for ongoing maintenance and improvements are established in the assignment agreement for the trailhead. Notable items include: Donation of funds to the Town for the purchase of a water fountain and installation of a water meter Maintenance of all landscaping at the trailhead until plants reach maturity (5 years) Installation of a water line (see Attachment 2), from the future Lot 4 development to the edge of the trailhead property Access to the trailhead through the parking area of Lot 4 Staff finds the applicant has fulfilled their obligations as stipulated on the approved Final Plat and Development Plan and therefore recommends approval. BACKGROUND OR DETAILED INFORMATION: BACKGROUND Prior approval include the following: 2004- Development Plan approved by Town Council 2005- Final Plat approved by Town Council 2009- Lot 5 development plan approved 2018- Improvement plans for the trailhead approved by Town staff The Mercado Del Rio River Walk Trailhead is located on the western block of the Mercado Del Rio Commercial Center (Attachment 2). The trailhead connects to the Cañada Del Oro multi-use path and was dedicated to the Town in 2004, through the Final Plat. The Final Plat also required the applicant to develop the trailhead once Lot 5 was developed or the portion of the multi-use path connecting to the trailhead was completed. The following improvements were included on the approved Mercado Del Rio Development Plan. Access from Vuelta Caminita Del Rio to the trailhead Paved parking area Future connection to the multi-use path Benches, refuse and a drinking fountain DISCUSSION The Mercado Del Rio Property Owners Association have completed the aforementioned improvements, except for installation of the drinking fountain. Currently, there is not an accessible water line available to support the fountain as Lot 4 is vacant, which was assumed to be developed prior to the trailhead being developed. As such, the applicant is proposing to donate funds to the Town for installing a water fountain and water meter in the future, once Lot 4 is developed. Details of this donation and stipulations for ongoing maintenance and improvements are established in the assignment agreement for the trailhead. Notable items include: Donation of funds to the Town for the purchase of a water fountain and installation of a water meter Maintenance of all landscaping at the trailhead until plants reach maturity (5 years) Installation of a water line (see Attachment 2), from the future Lot 4 development to the edge of the trailhead property Access to the trailhead through the parking area of Lot 4 Staff finds the applicant has fulfilled their obligations as stipulated on the approved Final Plat and Development Plan and therefore recommends approval. FISCAL IMPACT: Installation of a water line and ongoing maintenance of the trailhead will be the responsibility of the Town. This agreement offsets those costs by the property owner providing funds for the drinking fountain, a water meter and maintenance of the trailhead landscaping until plant maturity (five years). SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)18-22, approving the assignment agreement for donating funds and establishing ongoing maintenance responsibilities and future improvements for the Mercado Del Rio Trailhead. OR I MOVE to DENY Resolution No. (R)18-22, approving the assignment agreement for donating funds and establishing ongoing maintenance responsibilities and future improvements for the Mercado Del Rio Trailhead, based on the finding ______________________. Attachments (R)18-22 Mercado Del Rio Trailhead ATTACHMENT 2-LOCATION MAP RESOLUTION NO. (R)18-22 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY,ARIZONA, AUTHORIZING AND APPROVING AN ASSIGNMENT AGREEMENT FOR THE MERCADO DEL RIO RIVER WALK TRAILHEAD, LOCATED ON THE WESTERN LOT IN THE MERCADO DEL RIO COMMERCIAL CENTER, NEAR THE NORTHWEST CORNER OF ORACLE ROAD AND PUSCH VIEW LANE WHEREAS, the Town, Mercado Del Rio Property Owners Association, and Oro Valley Hospitality, LLC, desire to into an Assignment Agreement for the Mercado Del Rio River Walk Trailhead, located on the Western Lot in the Mercado Del Rio Commercial Center, near the northwest corner of Oracle Road and Pusch View Lane, as depicted in Exhibit “A” and incorporated by reference; and WHEREAS, the Mercado Del Rio Property Owners Association have completed the required improvements to the trailhead with the exception of the water fountain and water meter installation; and WHEREAS, the proposed assignment agreement would allow for the donations of funds to the Town to complete the remaining improvements and establishing ongoing maintenance responsibilities and future improvements of the Mercado Del Rio River Walk Trailhead; and WHEREAS, it is in the best interest of the Town of Oro Valley to enter into the Assignment Agreement attached hereto as Exhibit “B” and incorporated by reference, to allow for the donations of funds to the Town to complete the remaining improvements and establishing ongoing maintenance responsibilities and future improvements of the Mercado Del Rio River Walk Trailhead. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: 1. The Mayor and other administrative officials, or their designees, are hereby authorized to take such steps as necessary to enter into the Assignment Agreement attached hereto as Exhibit “B”, to allow for the donations of funds to the Town to complete the remaining improvements and establishing ongoing maintenance responsibilities and future improvements of the Mercado Del Rio River Walk Trailhead. . PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 6th dayof June, 2018. TOWN OF ORO VALLEY, ARIZONA Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date Date EXHIBIT “A” Push View Lane Trailhead EXHIBIT “B” WHEN RECORDED MAIL TO: Mercado Del Rio Property Owners Association c/o Mission Management Services LLC 7400 N. Oracle Rd, #162K Tucson, AZ 85704 _____________________________________________________________________________________ ASSIGNMENT AGREEMENT (RE: Block A – Mercado Del Rio) This AssignmentAgreement (“Agreement”) is made this ____ day of ___________, 2018 by and among Mercado del Rio Property Owners Association (the “Association”), Oro Valley Hospitality, L.L.C., an Arizona limited liability company (“OVH”), and the Town of Oro Valley (the “Town”) (together the “Parties”). RECITALS A. Mercado Del Reo, LLC, (“Developer”) owned and platted the commercial subdivision known as Mercado Del Rio, Lots 1 through 16, and Block A (“Mercado Del Rio”). B. Developer created and recorded the Declaration of Covenants, Conditions, and Restrictions for Mercado Del Rio, dated December 29, 2004 (the “Declaration”). C. Developer formed the Arizona Non-profit corporation Mercado del Rio Property Owners Association (the “Association”); D. Control of the Association has transitioned from the Developer to a Board of Directors elected by and from the Owners of Lots in Mercado Del Rio; E. OVH owns Lot 4 of Mercado Del Rio. F. Developer dedicated ownership of Block Aof Mercado Del Rio to the Town when the subdivision plat for Mercado Del Rio was recorded at Book 59, page 28-1 of Pima County, Arizona, Recorder’s Office. The subdivision plat Dedication states, in relevant part, “The undersigned, hereby warrant that I am all and the only party having any record title interest in the land shown on this plat and I consent to the subdivision of said land in the manner shown hereon. Exclusive easements and trail head right-of-way for Town uses as shown hereon are hereby dedicated to the Town of Oro Valley.” The City Council accepted the dedication when it approved the subdivision plat for recording; G. The subdivision plat for Mercado Del Rio provides at General Note 16 that “Per Agreement with the Town of Oro Valley, Parks and Recreation Division, the proposed trail head will not be required to be developed by the Applicant until the Town completes this portion of the Riverwalk Trail, or Lot 5 is developed, whichever is first.” H. Block A is the trail head referenced in General Note 16 of the subdivision plat for Mercado Del Rio ( the “Trail Head”) and serves as a public access point to the Canada Del Oro Riverwalk Trail (the “Trail”). I. The Declaration, at Section 3.1, provides, in relevant part, “...All Lots and other portions of the Property shall be held…subject to this Declaration…provided, however, that any portions of the Property which are dedicated to the public or a governmental entity for public purposes shall not be subject to this Declaration or the Covenants herein contained while owned by the public or governmental entity.”; J. The Parties wish to set out their final agreement regarding the improvement and maintenance of the Trail Head. AGREEMENT Now, therefore the Association, OVH, and the Town agree as follows: 1. The parties, by their signatures below, and each of them, represent and warrant to each other as follows: 1.1. The foregoing Recitals are true and correct. 1.2. They have full and sufficient authority to enter into this Agreement and bind themselves and the parties hereto. 1.3. There have been no assignments, either voluntary, involuntary, or by operation of law, of any property interest or estate therein, in any manner that would limit or defeat the provisions or intent of this Agreement. 1.4. This Agreement shall be binding upon the parties, their successors in interests, and assigns. 1.5. The Declaration, by its terms, is not applicable to the Town. 2. The Associationshall transfer funds in the amount of $2,289.00 (the “Funds”) to the Town to improve Block A subject to the following Restrictions: 2.1. The Town shall use the Funds in the support and enhancement of Block A specifically to purchase and install a drinking water fountain within Block A and to satisfy the Town’s obligations pursuant to Section 3.2; 2.2. The Town shall not transfer the Funds to any other entity or use the Funds for any other purpose without the prior written consent of the Association. 3. Infrastructure Improvements, as defined in Section 2.1 of the Declaration, shall be provided as follows: 3.1. Not later than the completion of a building on Lot 4 of Mercado Del Rio, a water line will be extended to the boundary line of Block A by OVH; 3.1.1. Completion of the building on Lot 4 shall mean the date that a Certificate of Occupancy is issued for such building; 3.2. The Town will extend the water line from the boundary line of Block A to the drinking water fountain and install a meter to separately measure water use from the drinking water fountain, which uses shall be atthe Town’s sole expense. 3.3. The owner of Lot 4 will cause a temporary driveway to be installed on Lot 4 in a location of the owner’s choosing to provide temporary access from public rights-of-way to Block A until such time as Lot 4 is developed. The temporary driveway will be constructed of 2- shot sealant and will be maintained by the Town until Lot 4 is developed. 3.4. At such time as Lot 4 is developed, access to Block A shall be through the parking area of Lot 4, as designated by the then owner of Lot 4. 3.5. The owner of Lot 4 shall not be required to maintain the temporary drive to Block A in the same location as originally installed during development of Lot 4, but shall provide access to Block A during development in a manner that will not unreasonably disturb development activities in Lot 4 owner’s sole discretion. The location of the temporary drive may be changed, from time to time, during development, in Lot 4 owner’s sole discretion. 3.6. The Association will provide no fewer than 30 plants, 2 benches and 10 parking spaces for use of the public on Block A. The Town shall be responsible for maintaining Block A and any improvements thereon, except for the irrigation of plants on Block A, which the Association will continue to be responsible for until the development of Lot 4, or 5 years, whichever is shorter, at which time the Town shall assume the responsibility for the irrigation of the plants, if any is required, in the Town’s sole discretion; 3.6.1. The Town hereby grants a right of entry to the Association and the owner of Block 4 to enter upon Block A for the purposes of fulfilling their obligations under this Agreement. 3.7. The Parties agree that this subsection 4.6 sets out all of the Infrastructure Improvements required by the Town for Block A. 4. Mutual Indemnification. Each Party will indemnify, defend and hold the other Party and its assignees, agents, officers and employees harmless from and against any claims, suits, proceedings, costs, liabilities, expenses (including court costs and reasonable legal fees), or damages (Claims) to real or tangible personal property and/or bodily injury to persons, including death, resulting from its or its employees, Clients or agents negligence or willful misconduct arising from or related to this Agreement. Until such time as a building on Lot 4 is completed, the Town will be responsible for the maintenance of the driveway to the Trail Head pursuant to Section 3.3 of this Agreement, and will indemnify the owner of Lot 4 as provided herein for Claims arising out of the failure to properly maintain the driveway. 4.1. 5.Prior Agreements.This Agreement shall supersede and replace all prior agreements and grants, oral or written, pertaining to Block A, except for the recorded subdivision plat, the Declaration and the Assurance Agreement for Completion of Subdivision Improvements entered into between Developer, the Town and Lawyers Title Agency of Arizona, LLC, as trustee under Trust No. 1808-T, on or about January 24, 2004, the Release of Subdivision Assurance Trust recorded in Docket 12549, Page 5515 of the Pima County, Arizona, Recorder’s Office, and other documents recorded in the Pima County Recorder’s Office applicable to Block A. 6.Amendment.This Agreement, and any amendments hereto, shall be recorded in the Office of the Recorder of Pima County, Arizona, and may be amended, modified or supplemented only by an instrument in writing, signed and acknowledged by the Parties, and properly recorded in the Office of the Recorder of Pima County, Arizona. 7.Interpretation.The rule of strict construction shall not apply to the grants, provisions, and agreements contained herein. The grants, provisions, and agreements contained herein shall be given reasonable construction to carry out the intentions of the parties hereto. 8.Governing Law.This Agreement and the rights and duties of the parties hereto shall be construed and enforced in accordance with the laws of the State of Arizona, both statutory and decisional. Venue for any dispute hereunder shall be in Pima County, Arizona. Any and all of the parties to this Agreement shall have the right to enforce any provision of this Agreement after mandatory written notice to the other party and a ten (10) day opportunity to cure. 9.Attorney Fees.In the event it becomes necessary for any Party to defend or institute legal proceedings in connection with this Agreement, it is understood that the substantially prevailing party in such litigation shall be entitled to be reimbursed by the non-prevailing party for all costs incurred or expended in connection therewith, including, but not limited to, reasonable attorney fees and court costs. 10.No Waiver.No delay or omission on the part of any party to assert or attempt to enforce any right or privilege hereunder shall be deemed to be a waiver of such right or privilege or any other right or privilege for any purpose or to any extent whatsoever. No provision hereof shall be or shall be deemed or considered to have been waived by any party unless such waiver is in writing and executed by the party sought to be charged with such waiver; and no waiver of any provision hereof with respect to any instance, matter or circumstance shall be deemed or considered to be a waiver of such provision with respect to any other instance, matter or circumstance or a waiver of any other provision hereof. 11.Severability.The invalidity or partial invalidity of any provision or portion thereof shall not affect the validity or enforceability of any other provision of this Agreement. 12.Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed, construed, and considered to be an original, but all of which shall constitute one and the same instrument, when signed by all of the parties. [Signatures Next Pages] IN WITNESS WHEREOF, Mercado Del Rio Property Owners Association, Oro Valley Hospitality, L.L.C., an Arizona limited liability company, and the Town of Oro Valley execute this Assignment Agreement on the day and year written above. Mercado Del Rio Property Owners Association By: _____________________________ Its: _____________________________ STATE OF ARIZONA ) ) ss County of Pima ) ACKNOWLEDGED before me this ____ day of _________________, 2018 by _____________________________, as President of the Mercado Del Rio Property Owners Association, and duly authorized. ___________________________________ Notary Public Oro Valley Hospitality, L.L.C. By:_____________________________ Its:_____________________________ STATE OF ARIZONA ) ) ss County of Pima ) ACKNOWLEDGED before me this ____ day of _________________, 2018 by _____________________________, as ___________ of Oro Valley Hospitality, L.L.C., and duly authorized. ___________________________________ Notary Public TOWN OF ORO VALLEY _____________________________ Dr. Satish I. Hiremath, Mayor ATTEST: APPROVED AS TO FORM ______________________________________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: ___________________Date: ______________ Mercado Del Rio River Walk Trailhead Location Map Attachment 2 Yellow Star and line = Trailhead boundary Orange line –Mercado Del Rio Commercial Center boundary TargetThe Place at Rock Ridge Apartments Auto Repair Shops Salon Pusch View Lane Lot 4 Town Council Regular Session F. Meeting Date:06/06/2018 Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Cancellation of the June 20, 2018 regular Town Council meeting RECOMMENDATION: N/A EXECUTIVE SUMMARY: At its regular meeting on December 6, 2017, the Council approved the 2018 regular Town Council meeting schedule, which included a regular meeting scheduled for June 20, 2018. Currently, there is no business scheduled for the June 20 regular Town Council meeting. In the event that the Town Council would like to cancel the June 20 regular Town Council meeting, the Town Council must take formal action. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to cancel the June 20, 2018 regular Town Council meeting. Attachments No file(s) attached. Town Council Regular Session G. Meeting Date:06/06/2018 Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: Resolution No. (R)18-23, approving an intergovernmental agreement amendment for the continued provision of animal control services between the Town of Oro Valley and Pima County RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The current intergovernmental agreement (IGA) for the provisions of animal control services (Attachment 3) between the Town of Oro Valley and Pima County ends June 30, 2018. The proposed animal control services amendment (Attachment 2) shall become effective July 1, 2018 - June 30, 2019, and contains the option for up to two additional one-year extensions. BACKGROUND OR DETAILED INFORMATION: Approval of the IGA Amendment (Attachment 2) will authorize the continued provision of animal control services (Attachment 3 is the current IGA) in Oro Valley by Pima County relating to licensing, enforcement of leash law ordinances, biting dog ordinances, animal cruelty ordinances and the provision of impoundment and sheltering of strays. FISCAL IMPACT: The Town will reimburse the County approximately $143,497 under the terms of this contract renewal. Part of this cost is covered by animal license, adoption and other fees that are credited to Oro Valley totaling approximately $90,000 - $100,000 annually. Therefore, the net cost to the General Fund is only approximately $40,000 - $50,000. These amounts have been included in the FY 2018/19 adopted budget. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)18-23, approving an intergovernmental agreement amendment for the continued provision of animal control services between the Town of Oro Valley and Pima County. or I MOVE..... Attachments (R)18-23 IGA Animal Control Services FY2018-19 PACC Agreement FY2017-18 PACC Agreement C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@F403CA2E\@BCL@F403CA2E.doc Town of Oro Valley Attorney’s Office/ca/041712 RESOLUTION NO. (R)18-23 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND PIMA COUNTY FOR ANIMAL CONTROL SERVICES WHEREAS,pursuant to A.R.S. § 11-952, the Town of Oro Valley is authorized to enter into or renew agreements for joint and cooperative action with other public agencies; and WHEREAS, the Town of Oro Valley is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240(B)(12); and WHEREAS, on April 19, 2017, the Mayor and Council approved Resolution No. (R) 17-16, authorizing an Intergovernmental Agreement (“IGA”) between the Town and Pima County Animal Control Services for a one year period which terminates on June 30, 2018; and WHEREAS, the Town and Pima County desire to enter the new IGA to renew the IGA for an additional one year, beginning July 1, 2018 and ending on June 30, 2019; and WHEREAS, it is in the best interest of the Town of Oro Valley approve the IGA between the Town and Pima County in order to continue providing enforcement of leash law ordinances, biting dog ordinances, animal cruelty ordinances and to provide for the impoundment and sheltering of stray animals within the Town’s boundaries. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona that: 1.The Intergovernmental Agreement between the Town of Oro Valley and Pima County, attached hereto as Exhibit “A”, for animal control services is hereby authorized and approved. 2.The Mayor, Chief of Police and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Amendment. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 6th day of June, 2018. TOWN OF ORO VALLEY ____________________________________ Dr. Satish I. Hiremath, Mayor C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@F403CA2E\@BCL@F403CA2E.doc Town of Oro Valley Attorney’s Office/ca/041712 ATTEST:APPROVED AS TO FORM: _________________________________________________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director _________________________________________________________________ Date Date C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@F403CA2E\@BCL@F403CA2E.doc Town of Oro Valley Attorney’s Office/ca/041712 Exhibit “A” CTN18-175-02 PAC & Town of Oro Valley Page 1 of 3 PIMA ANIMAL CARE PROJECT: Animal Care and Enforcement Services TOWN: Town of Oro Valley CONTRACT NO.: CTN-PAC-18-175; formerly CTN-HD-16-177 CONTRACT AMENDMENT NO.: Two (02) ORIG. CONTRACT TERM: 07/01/2016-06/30/2017 ORIG. CONTRACT AMOUNT: $143,635 TERMINATION DATE PRIOR AMENDMENT: 06/30/2018 PRIOR AMENDMENTS: $151,268 TERMINATION DATE THIS AMENDMENT: 06/30/2019 AMOUNT THIS AMENDMENT: $143,497 REVISED CONTRACT AMOUNT: $438,400 INTERGOVERNMENTAL AGREEMENT AMENDMENT WHEREAS, Town and County entered into a Contract for services as referenced above; and WHEREAS, Town and County, pursuant to Article 2.0 – Term/Effective Date, have agreed to extend the Contract term for a period of one year; and WHEREAS, Town and County have agreed to increase the contract amount to allow payment for the continued provision of animal care and enforcement services during the extended term of the contract. NOW, THEREFORE, it is agreed as follows: 1. Term. The Contract terminates on June 30, 2019. The Parties shall have the option to extend this Agreement for up to two (2) additional one (1) year periods or any portion thereof. 2. Maximum Payment Amount. The maximum amount the Town will spend under this Contract, as set forth in Article 4.0, Payment, is increased by $143,497. Town’s total payments to County under this contract, including any sales taxes, will not exceed $438,400. The Town will reimburse the County approximately $143,497 for Fiscal Year 2018-2019. The County will bill the Town monthly for services. The total cost delineated in Article 4.1 below is the estimated cost of service for the Town of Oro Valley. Actual cost may vary and will be based on documented services provided to the Town or Town residents. Monthly bills may be adjusted on a quarterly basis as set forth in Article 5.2.1. CTN18-175-02 PAC & Town of Oro Valley Page 2 of 3 3. Estimated Expenses. Add to Article 4.1 as follows: The costs of service units for fiscal year 2018-2019 are projected below: Expenses Amount Allocation Basis Administration Management $ 11,084 Ratio of all Service Provided Field Services / Enforcement $ 34,243 Ratio of Enforcement Call Responses Shelter and Veterinary Services $ 50,620 Ratio of Animals Handled Spay / Neuter Services $ 17,354 Per Capita Licensing $ 30,196 Ratio of Licenses Issued TOTAL $ 143,497 The annual estimated allocation of $143,497 for FY2018/19 is based on the average of the previous full fiscal year’s ratio of expenses incurred in the provision of animal services to the Town as compared to the total expenses for services provided for all jurisdictions. The Fiscal Year 2018/19 allocation to the Town is 1.66% of the total PACC budget and represents an average of the Town’s percent allocation of total animal services expenditures incurred by the County for services in the Town for Fiscal Year 2016/2017. The County will provide the Town the annual estimated expenses for PACC and the Town’s estimated share of expenditures for Fiscal Year 2019/20 no later than January 31, 2019. 4. Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterpart may be removed from such counterpart and attached to a single instrument. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK CTN18-175-02 PAC & Town of Oro Valley Page 3 of 3 IN WITNESS WHEREOF, the County has caused this Amendment to be executed by the Pima County Board of Supervisors, as attested to by the Clerk of the Board, and the Town of Oro Valley has caused this Amendment to be executed by the Mayor of the Town of Oro Valley, upon resolution of the Mayor and Council, as attested to by the Town Clerk. PIMA COUNTY: ____________________________ _______ Chair, Board of Supervisors Date ATTEST ____________________________ _______ Clerk of the Board Date APPROVED AS TO CONTENT ____________________________ _______ Department Director or designee Date TOWN OF ORO VALLEY: ____________________________ _______ Town Mayor Date ATTEST ____________________________ _______ Town Clerk Date ATTORNEY CERTIFICATION The foregoing Amendment to the Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S. § 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. ____________________________ _______ Deputy County Attorney Date ____________________________ _______ Town Attorney Date Town Council Regular Session H. Meeting Date:06/06/2018 Requested by: Gary Bridget Submitted By:Gary Bridget, Human Resources Department:Human Resources Information SUBJECT: Resolution No. (R)18-24, approving a Memorandum of Understanding (MOU) for fiscal years 2018/19 and 2019/20 between the Town of Oro Valley and the Public Safety Employee Group RECOMMENDATION: Both the Management Negotiating Committee (MNC) and the Public Safety Negotiating Committee (PSNC) recommend adoption of the proposed MOU for fiscal years 2018/19 and 2019/20. EXECUTIVE SUMMARY: Presented herein is a MOU between the Town and the Town's Public Safety Employee Group that has been mutually agreed upon and signed by members of both negotiating groups. The MNC and PSNC met on several occasions over the past six months to discuss the working conditions, wages and benefits provided by the Town. The meetings were productive and the discussions resulted in the proposed MOU which addresses both the concerns of the Town and the Public Safety Employees. Substantive changes from the current MOU include increasing the sick leave payout to 100% for spouses and dependents of officers who die while performing police duties; adjusting the cost share paid by the Town from 80% to 75% for members' dependent medical and dental insurance premiums in FY 2019/2020; and the discontinuation of permitting non-employees, or retirees, to participate on the Town's self-funded insurance plan, effective January 1, 2025, in which these individuals would need to utilize the State of Arizona PPO health insurance plan intended for retirees; and continuation of steps at the current MOU rates. Please note the Town will make these changes applicable to all employees as part of our policy updates in the near future. BACKGROUND OR DETAILED INFORMATION: In 2004, the Town Council adopted Ordinance No. (O)04-28, which established a "Meet and Confer" process for public safety employees. This ordinance was modified in November 2005 by Ordinance No. (O)05-44, which refined and clarified some of the language in the original ordinance. On March 3, 2014, the Town Council approved a modification of the ordinance by removing civilian positions from Town Code Chapter 4, Section 4-1-8 through Ordinance No. (O)14-03. This MOU marks the fourth time that the Town and the Public Safety Employee Group have mutually agreed to a multi-year MOU. The MOU and its related attachments were developed by the Public Safety Negotiating Committee (PSNC) and the Management Negotiating Committee (MNC) after a series of meetings over the past few months. Both parties are in agreement as to the terms and conditions that are contained herein. The PSNC's representation is determined by eligible employees within the Police Department and includes police officers with a rank of sergeant and below, as well as bailiffs. The following members of the Police Department negotiated the MOU on behalf of the Public Safety Employee Group: Marshall Morris, Sergeant Kevin Mattocks, Officer Zach Young, Sergeant Zach Young, Sergeant Zach Pierce, Sergeant The MNC membership was assigned by the Town Manager and includes the following employees: Chris Cornelison, Assistant to the Town Manager Gary M. Bridget, Human Resources Director Kara Riley, Police Commander Mark Neihart, Procurement Administrator The MNC negotiated with concurrence and guidance from the Town Manager, Finance Director, Police Chief, and Town Attorney. Compared to the current MOU (FY 2016/18) the following substantive changes were agreed to in the proposed MOU for fiscal years 2018/20: It was agreed that STEP promotions for the Public Safety Employee Group will continue for fiscal years 2018/19 and 2019/20 at the same rates as the current MOU for employees rated as "Successful" or "Outstanding" on the annual performance evaluation. 1. Beginning the second fiscal year of the proposed MOU (FY 2019/20), the MNC and PSNC agreed to reduce the additional monthly premium cost for members’ dependent medical and dental insurance premium to be paid by Town from no less than eighty percent (80%) to no less than seventy-five percent (75%) of the additional monthly premium cost for members’ dependent medical insurance premium to be paid by Town. 2. Increasing the sick leave payout to 100% for spouses and dependents of officers who die while performing police duties; adjusting the cost share paid by the Town from 80% to 75% for members' dependent medical and dental insurance premiums in FY 2019/2020 3. Discontinuation of permitting non-employees, or retirees, to participate on the Town's self-funded insurance plan, effective January 1, 2025, in which these individuals would need to utilize the State of Arizona PPO health insurance plan intended for retirees. 4. Please note the Town will make the benefits and retirement changes applicable to all employees as part of our policy updates in the near future. FISCAL IMPACT: The estimated cost impact of continuing to fund steps over the next two years is approximately $140,000 per year, or $280,000 for the total 2 years. The estimated savings to the Town for lowering the dependent coverage from 80% to 75% on a town-wide basis is approximately $110,000 in FY 2019/20. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)18-24, adopting a Memorandum of Understanding between the Town of Oro Valley and the Public Safety Employee Group for fiscal years 2018/19 and 2019/20. Attachments (R)18-24 MOU 2018-2020 MOU 2018-20 C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D803F17B\@BCL@D803F17B.doc Town of Oro Valley Attorney’s Office/ca/042312 RESOLUTION NO. (R)18-24 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA,APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN PUBLIC SAFETY EMPLOYEES AND THE TOWN OF ORO VALLEY PURSUANT TO CHAPTER 4, SECTION 4-1-8 OF THE TOWN CODE, PUBLIC SAFETY EMPLOYEE RELATIONS AND PROCESSES WHEREAS,the Town of Oro Valley is committed to the development and continuation of harmonious and cooperative relationships with all of its employees; and WHEREAS,the Town recognizes the right of public safety employees to join employee associations which comply with the laws of Arizona and to present proposals and testimony to the Town Council, and not to be discharged, disciplined or discriminated against because of the exercise of those rights; and WHEREAS,the continued smooth operation of the Police Department is of great benefit to the residents of Oro Valley and the general public; and WHEREAS, in 2004 the Town Council adopted Ordinance No. (O) 04-28 which enacted Town Code Chapter 4, Section 4-1-8, Public Safety Employee Relations and Processes, establishing a meet and confer process for public safety employees and the Town, and on March 3, 2014, the Town Council approved the removal of civilian positions from Town Code Chapter 4, Section 4- 1-8 through Ordinance No. (O) 14-03; and WHEREAS, the Memorandum of Understanding, attached hereto as Exhibit “A” and incorporated herein by this reference, was negotiated between the Public Safety Negotiation Committee and the Town’s Management Negotiation Committee in accordance with Chapter 4, Section 4-1-8, Public Safety Employee Relations and Processes. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the Memorandum of Understanding, attached hereto as Exhibit “A”, between the Town of Oro Valley and Public Safety Employees is hereby approved. BE IT FURTHER RESOLVED that the Agreement, attached as Exhibit “A”, shall be effective for the period of July 1, 2018 through June 30, 2020. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 6 th dayof June, 2018. C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D803F17B\@BCL@D803F17B.doc Town of Oro Valley Attorney’s Office/ca/042312 TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@D803F17B\@BCL@D803F17B.doc Town of Oro Valley Attorney’s Office/ca/042312 EXHIBIT “A” Town Council Regular Session I. Meeting Date:06/06/2018 Requested by: Stacey Lemos Submitted By:Stacey Lemos, Finance Department:Finance Information SUBJECT: Resolution No. (R)18-25, adopting and approving updates to the Financial and Investment Policies of the Town of Oro Valley RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The purpose of this item is to submit for review, consideration and adoption by the Town Council, a resolution approving and adopting proposed updates to the financial policies and investment policy for the Town of Oro Valley. The updates to the financial policies are necessary to reflect current Town practices with regard to dedicating funding specifically toward capital projects, asset maintenance and paying down the Town's unfunded Public Safety Personnel Retirement System (PSPRS) liability. The updates to the investment policy are necessary to reflect best practices recommended by the Government Finance Officers Association (GFOA) and to add corporate notes and negotiable CDs to the list of suitable investments to provide more flexibility and diversity in the Town's investment portfolio. BACKGROUND OR DETAILED INFORMATION: From time to time, it is necessary to review and update the Town's financial and investment policies to incorporate best practices and modernize the language to reflect current business practices and philosophy. The Town's financial policies were last updated in 2015, and the Town's investment policy was last updated in 2010. Staff is recommending the following minor language updates to the Town's financial policies (see Exhibit A with redlines attached): Section C.2. Capital Improvement Program - language has been updated to reflect the preparation of a minimum 10-year Capital Improvement Program (CIP) from a five-year program. Also added is language dedicating an annual minimum funding level of at least 5% of the Town's estimated excise tax collections for future capital needs. The intent of this provision is to establish a sustainable, predictable funding source for future capital needs and asset maintenance within the Town's Capital Fund. Section C.3. Fund Balance Reserve Policies - language has been added to further clarify the practice of maintaining a minimum 25% reserve balance in the General Fund, with any excess surplus amounts over this minimum threshold allocated between capital project funding in the Capital Fund and reducing the Town's Public Safety Personnel Retirement System (PSPRS) unfunded pension liability. The above recommended changes to the financial policies reflect the initiatives included in the FY 2018/19 Adopted Budget aimed at providing sustainable funding for the Town's capital needs and addressing the goal of reducing the Town's unfunded PSPRS pension liability currently estimated at $21 million. Further, staff is recommending minor language updates to the Town's investment policy (see Exhibit B with redlines attached) to follow GFOA best practices, reorganizing the location of the paragraphs discussing credit risk and interest rate risk under Section 2- Objective, and including corporate notes and negotiable CDs as additional suitable investments under Section 6 - Investment Types to provide flexibility and broader diversification in the Town's investment portfolio. The attached updates to this policy were provided by the Town's investment portfolio advisors, PFM Asset Management. These recommended policy changes will provide for the future financial stability of the Town's capital program and added diversity in the Town's investment portfolio. FISCAL IMPACT: The recommended updates to the Town's financial policies will ensure dedicated, sustainable funding for the Town's future capital needs with the allocation of a minimum of 5% of the Town's excise taxes for this purpose along with any one-time, surplus amounts over the 25% contingency reserve threshold. The estimated excise tax collections for FY 2018/19 are $21 million, therefore, a minimum 5% allocation totals approximately $1 million for FY 18/19. This amount, combined with the one-time surplus funds over the 25% reserve threshold, amounted to just over $3.5 million dedicated to funding current and future capital needs in the Capital Fund for FY 2018/19. Additionally, broadening the Town's options in its investment portfolio through the updates to the investment policy allows for greater diversity, flexibility and opportunity for safe yield growth. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)18-25, adopting and approving updates to the Financial and Investment Policies of the Town of Oro Valley. or I MOVE... Attachments (R)18-25 Financial and Investment Policies Exhibit A Financial Policies Exhibit B Investment Policy RESOLUTION NO. (R)18-25 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, ADOPTING AND APPROVING UPDATES TO THE FINANCIAL POLICIES AND THE INVESTMENT POLICY FOR THE TOWN OF ORO VALLEY WHEREAS,on June 17, 2015, the Town Council approved Resolution No. (R) 15-50, adopting the “Town of Oro Valley Financial and Budgetary Policies” as amended; and WHEREAS,on September 15, 2010, the Town Council approved Resolution No. (R) 10-65, adopting the “Town of Oro Valley Investment Policy” as amended; and WHEREAS, the Council has determined that it is appropriate and necessary to update the “Town of Oro Valley Financial and Budgetary Policies” and the “Town of Oro Valley Investment Policy” to bring the policies in line with current financial practices, procedures, and strategies of the Town by replacing, as of the date of this Resolution, such policies with the documents attached hereto as Exhibit “A” (Town of Oro Valley Financial Policies) and Exhibit “B” (Town of Oro Valley Investment Policy), and incorporated by reference. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona that: SECTION 1.The updates to the Town of Oro Valley Financial Policies and the Town of Oro Valley Investment Policy is hereby adopted and approved. SECTION 2.The Town Manager and any other administrative officials, or their designees of the Town of Oro Valley are hereby authorized to take such steps as are necessary to implement the Town of Oro Valley Financial Policies and the Town of Oro Valley Investment Policy as amended. SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions or Motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 6th dayof June, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: DRAFT EXHIBIT “A” A. Finance 1. Enterprise Basis a. The Utility shall be a financially self-supporting enterprise with all costs associated with operation of the Utility to be funded from revenues derived from the sale of water and other water-related income sources. b. An annual average debt service coverage of 1.3 times or 130% shall be maintained. c. Water revenues collected in excess of operating needs of the Utility shall be carried forward for future operating or future bond funding requirements and shall not be transferred to the Town’s General Fund. d. The Utility shall maintain cash reserves for known future obligations plus an allowance for unbudgeted contingencies set at 5 percent (5%) of the total annual budget. The Utility shall maintain a cash reserve in the Operating Fund of not less than 20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance, and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects, depreciation, amortization and contingency. No cash reserve is required for the water utility impact fee funds. e. Should the Mayor and Council determine the need for a minimum amount of water at reduced rates or other forms of subsidized water service for low income water users within the service area, the costs of such subsidies will be funded from the Town’s General Fund and not from water rates, fees and charges. f.The Town shall not enter into a development agreement for any purpose that permits the developer to pay reduced water rates and/or reduced development impact fees. G. REVENUE FROM THE GROUNDWATER PRESERVATION FEES SHALL BE USED FOR RENEWABLE WATER CAPITAL COSTS AND ASSOCIATED DEBT; RENEWABLE WATER RESOURCES AND RELATED DEBT; AND FOR COSTS TO WHEEL CENTRAL ARIZONA PROJECT WATER TO THE TOWN. Financial and Budgetary Policies The Town of Oro Valley has an important responsibility to its residents to carefully account for public funds, manage its finances prudently and plan for the adequate funding of services desired by the public. Sound financial policies help to ensure the Town’s capability to adequately fund and provide the government services desired by the community. The policies contained herein are designed to foster and support the continued financial strength and stability of the Town of Oro Valley. Following these policies enhances the Town’s financial health as well as its image and reputation with residents, the general public, bond and credit rating agencies and investors. The policies serve as guidelines for the Town’s overall fiscal planning and management. In addition, both the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the jurisdiction’s governing board. The most recent Town Council amendment and readoption of the policies occurred on June 17, 2015 per Resolution (R)15-50. A. Financial Planning Policies A.1 Balanced Budgeting and Fiscal Planning Policies Fiscal planning is the process of identifying resources and allocating those resources among multiple and competing needs. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. The Town shall develop an annual budget whereby recurring Town revenues shall be sufficient to support recurring operating expenditures with no use of General Fund contingency to support ongoing operational expenses. The Town’s annual budget will include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be expended upon Council approval. Budget development will use strategic multi-year fiscal planning; conservative revenue forecasts and a program/performance based budgeting method. This method requires each department to establish fiscal year goals and objectives that will be evaluated to determine the effectiveness and efficiency of both department and Town resources. Utilization of a program/performance budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding. Monthly budget to actual revenue and expenditure reports will be prepared for all Town funds by the Finance Department and presented to Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. The Town will not use one-time (non-recurring) revenues to fund continuing (recurring) uses, or use external borrowing for operational requirements. The budget will incorporate the best available estimates of revenues and expenditures. All budgetary appropriations that have not been expended or lawfully encumbered shall lapse at the end of the fiscal year, June 30th. Appropriations for capital projects in progress at fiscal year- end shall be made for the subsequent fiscal year. EXHIBIT A The Town shall work to minimize the financial burden on its taxpayers by routinely evaluating both its administrative and direct service delivery systems in terms of efficiency, effectiveness and responsiveness. Technology shall be utilized when feasible to increase efficiency and cost- effectiveness. Any fiscal year-end special revenue fund balance amounts in other special revenue funds of the Town shall be maintained, preserved separately, and carried forward within those funds and not considered as part of the contingency reserve requirement for the Town’s General Fund. The Town’s annual budget shall be adopted by the Town Council at the fund level, except in the General Fund, where it shall be adopted at the department level. To provide sufficient control and accountability, budgets shall be prepared and monitored by major expenditure categories (personnel, operations and maintenance, capital outlay, debt service). (A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources). The Town shall promote the understanding that its employees are its most valuable resource and shall employ sound management practices when planning for service delivery. The Town is committed to maintaining and improving the productivity of staff through a pleasant working environment, appropriate equipment including office automation and computer applications, necessary training and adequate supplies and materials as resources and adopted policies permit. A.2 Long Range Planning As part of the annual Town budget preparation cycle, the Finance Department shall prepare a minimum five-year financial forecast of projected revenues and expenditures to measure the financial sustainability of the Town’s operations and service levels. A.3 Cash Management & Investment Policy Cash and investment programs will be maintained in accordance with the Town’s adopted Investment Policy and will ensure that proper controls and safeguards are maintained. Town funds are managed with an emphasis of safety of principal, liquidity and financial yield, in that order. Bond funds will be segregated from all other funds for arbitrage and accounting purposes. Ownership of the Town’s investment securities will be protected through third party custodial safekeeping. All Town bank accounts shall be reconciled and reviewed on a monthly basis. The Town will consolidate cash balances from various funds for investment purposes, and will allocate investment earnings to each participating fund. This will allow the Town to maximize yields from its overall portfolio. Investment performance will be reviewed and reported on as outlined in the current adopted investment policy. All treasury activities with financial institutions will be conducted based upon written contracts between the Town and the respective financial institution(s). A.4 Asset Inventory Capital assets are assets with an acquisition cost of $5,000 or more and an estimated useful life of two or more years. Such assets shall be depreciated in the Town’s financial statements over their estimated useful lives. Minor assets are assets with an acquisition cost of $1,000 or more but less than $5,000 and an estimated useful life of two or more years. Such assets will not be depreciated in the Town’s financial statements. Expendable items are machinery and equipment purchases whose cost is less than $1,000. These items will not be depreciated. The Town will depreciate capital assets using the straight line depreciation method. The Town will project equipment and vehicle replacement needs for the next five years and will update this projection each year. Subject to funding availability, Town departments will be charged an annual contribution amount to accumulate funds for this purpose based on a portion of their annual asset depreciation. The Finance Department shall be responsible for verifying the actual physical existence of capital and minor assets and the accuracy of the Town’s asset database. The process will be monitored through asset audits of Town departments and divisions. Any significant irregularities are reported to the Town Manager. The Town will maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to continue service levels. B. Revenue Policies B.1 Revenue Diversification The Town will strive for a General Fund revenue base consisting of a balance of sales taxes, state shared revenues, user fees and other revenue sources. The Town will maintain a diversified and stable revenue base to protect against short term fluctuations in any single revenue source and economic changes locally and nationally. The Town will estimate revenues in a realistic and moderate manner in order to minimize the risk of a revenue shortfall. B.2 Fees and Charges All non-enterprise user fees and charges shall be examined annually to determine the cost recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by Town Council or as otherwise specified in Town code. Development impact fees for capital expenses attributable to new development will be reviewed periodically to ensure the fees recover all direct and indirect development related expenses and be approved by Town Council. For enterprise fund operations, the Town will establish rates and fees at levels to cover fully the total direct and indirect costs, including operations, capital outlay, debt service, debt coverage requirements and unrestricted cash reserve balances. Enterprise funds will not be used to subsidize the operations of other funds. Interfund charges will be assessed for the administrative support of the enterprise activity. B.3 Use of One-Time Revenues The Town will utilize one-time (non-recurring) revenues to fund one-time operating expenditures, prepay existing debt, or supplement “pay as you go” capital outlay. One-time revenues shall not be used to fund recurring expenditures. B.4 Use of Unpredictable Revenues If the Town should receive unpredictable revenues from sales tax audits, unbudgeted grant funding, gifts or donations, the Town shall account for these revenues as one-time revenues. They shall not be used to fund recurring expenditures. C. Expenditure Policies C.1 Debt Capacity, Issuance and Management The Town will seek to maintain and, if possible, improve its current bond rating in order to minimize borrowing costs and preserve access to credit. The Town will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. Future bond issue proposals will be accompanied by an analysis showing how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. The general policy of the Town is to fund capital projects with new, dedicated streams of revenue or voter-approved debt. Non voter-approved debt may be utilized when a dedicated revenue source other than general revenue can be identified to pay debt service expenditures. Financing shall not exceed the useful life of the acquired asset. The Town shall not use long term debt to finance current operations. The Town will establish debt repayment schedules with fixed annual principal and interest payments. Proceeds from bonded debt will be used in accordance with the purpose of the issuance. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. The Town shall comply with the Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. Interest earnings on bond proceeds will be limited to 1) funding or acquiring the improvement(s) or asset(s) or 2) payment of debt service on the bonds. All projects funded with bonded debt must be included in the Town’s Capital Improvement Program. When considering refunding any outstanding bonded debt, the Town will perform a cost benefit analysis to determine if the cost savings of refunding will be greater than the cost to refund. Considerations will be made with regard to the existing bond covenants when refunding any bonded debt. When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to ensure debt coverage in times of revenue fluctuation. This will be in addition to the required ratio in the bond indenture. The Town will communicate, and where appropriate, coordinate with all jurisdictions with which we share a common tax base concerning our collective plans for future debt issues. The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation by the type of project to be constructed. The limit for general purpose municipal projects is 6%. For water, light, sewer, open space, public safety, park, law enforcement, fire and emergency services, and streets and transportation facilities projects, the limit is 20%. C.2 Capital Improvement Program The purpose of the Capital Improvement Program (CIP) is to systematically identify, plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as conformance to established policies. A minimum ten-year Capital Improvement Program will be developed and updated annually, including anticipated funding sources. Capital improvement projects are defined as infrastructure, equipment purchases or construction which results in or makes improvements to a capitalized asset costing more than $50,000 and having a useful life of five or more years. The Capital Improvement Program will include, in addition to estimated operating maintenance expenditures, adequate funding to support repair and replacement of deteriorating infrastructure and avoidance of a significant unfunded liability. Proposed capital projects will be reviewed and prioritized by a cross-departmental team regarding accurate costing (design, capital and operating) and overall consistency with the Town’s goals and objectives. Financing sources will then be identified for the projects ranking the highest based on the established ranking systems and limited monies. In order for the Town to provide sustainable funding for capital improvements and asset repair and maintenance needs each year, the annual budget shall include the allocation of a minimum of 5% of the Town’s estimated excise tax collections to fund these needs, subject to Council approval and funding availability. These funds will be accounted for in a separate Capital Fund. Capital improvement lifecycle costs will be coordinated with the development of the operating budget. Future operating, maintenance and replacement costs associated with new capital improvements will be forecast, matched to available revenue sources and included in the operating budget. The current fiscal year of the Capital Improvement Program will become the capital budget. Staff will monitor projects to ensure their timely completion or determine if an adjustment to the Capital Improvement Plan needs to be presented to Council. A quarterly status report will be presented to the Town Council to monitor each project’s progress and identify any significant issues. C.3 Fund Balance Reserve Policies Fund balance reserves will be established to offset difficult economic times, stabilize fluctuations in cash flow requirements, provide for emergency situations threatening the public health or safety and provide for unanticipated increases in service delivery costs, unanticipated declines in revenues, unforeseen opportunities and contingencies. Use of reserves should be utilized only after all budget sources have been examined for available funds, and subject to Town Council approval. In accordance with Governmental Accounting Standards Board Statement No. 54, fund balances will be classified in the following components: A. Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in spendable form, suchas prepaid items, supplies inventory or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment. This category was traditionally reported as a “reserved” fund balance under the old standard. B. Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either (a) externally imposed by creditors, such as debt covenants, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. This category was traditionally reported as a “reserved” fund balance under the old standard. C. Committed Fund Balance: That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority, and remain binding unless removed in the same manner. This category was traditionally reported as a “designated” fund balance under the old standard. D. Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose. This category was traditionally reported as a “designated” fund balance under the old standard. E. Unassigned Fund Balance: That portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance. This category was traditionally reported as an “undesignated” fund balance under the old standard. The Town shall maintain, at a minimum, a fund balance contingency reserve in the General Fund that represents 25% of the General Fund’s annual expenditures with no use of the General Fund contingency to support ongoing operational expenditures. This minimum reserve amount will be incorporated into the General Fund budget adopted by formal action taken by the Town Council. Accordingly, these reserves will be classified as committed fund balances.Any excess funds that accumulate over the 25% balance shall be allocated toward capital project funding and reducing the Town’s Public Safety Personnel Retirement System (PSPRS) unfunded liability. Fund balance reserves may only be appropriated by authorization of the Town Council. A plan will be developed to adequately replenish reserves when appropriations are projected to reduce reserves below the required minimum levels. When multiple categories of fund balance reserves are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the Town Council and unassigned fund balance), the Town will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. The Water Enterprise Fund shall maintain a cash reserve in the operating fund of not less than 20% of the combined total of the annual budgeted amounts for personnel, operations & maintenance, and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects, depreciation, amortization and contingency. No cash reserve is required for the water utility impact fee funds. All Town budgetary fund designations and reserves will be evaluated annually for long-term adequacy and use requirements in conjunction with development of the Town’s long-term financial forecast. C.4 Operating Expenditure Accountability Expenditures will be controlled as outlined in the approved budget. Department heads are responsible for monitoring expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of department heads to immediately notify the Finance Director and Town Manager of any circumstances that could result in a departmental budget being exceeded. The Arizona Constitution sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements and audited reconciliation report as defined by the Uniform Expenditure Reporting System to the State Auditor General within prescribed timelines. Monthly budget to actual revenue and expenditure reports will be prepared, for all Town funds, by the Finance Department and presented to the Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. To provide flexibility in the management of departmental budgets for major expenditures (personnel, operations & maintenance, capital outlay and debt service) the following budget amendment and transfer provisions shall apply: A. Transfers between funds shall require the recommendation of the Town Manager and formal action by the Town Council. B. Transfers between the line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager. C. Transfers between the line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. D. Transfers between the operations and maintenance and capital outlay major expenditure categories shall be permitted upon recommendation of the Department Head and approval by the Town Manager. E. Transfers that would reduce or eliminate funding for items designated in the adopted Capital Improvement Program shall require the recommendation of the Town Manager and approval of the Town Council. F. Transfers that would reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and formal Council action. D. Financial Reporting Policies The Town’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). An annual audit of the Town’s financial statements will be performed by an independent certified public accounting firm, with an audit opinion to be included with the Town’s published Comprehensive Annual Financial Report (CAFR). The Town’s CAFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. The Town’s budget will be submitted annually to the GFOA Distinguished Budget Presentation Program. The budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends and resource choices. Financial systems will maintain internal controls to monitor revenues, expenditures and program performance on an ongoing basis. TOWN OF ORO VALLEY INVESTMENT POLICY Section 1- Scope Subject to the provisions of any applicable financing document and the Investment Laws, this investment policy applies to all Town funds which include the General Fund, Special Revenue Funds, Capital Project Funds ,Enterprise Funds and Debt Service Funds. All funds are accounted for in the Town of Oro Valley's Comprehensive Annual Financial Report. Section 2 -Objective While conforming to federal, state and other legal requirements the primary objectives, of the Town of Oro Valley investment activities shall be: Safety, Liquidity and Return. The objective will be to mitigate credit risk and interest rate risk. A.Safety The principal goal of the investment program is the preservation and safety of the capital of all Town Funds.Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from security defaults or erosion of market value. B.CreditRisk The Town will minimize credit risk, which is the risk of loss due to the failure of the security or backer, by: ∑Limiting investments to the types of securities listed inSection 6 of this investment policy ∑Pre-qualifying financial institutions ,broker/dealers ,intermediaries, and advisers with which the Town will do business in accordance with Section 5 ∑Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized C.Interest Rate Risk The Town will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates by: •Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity •Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools limiting the average maturity in the portfolio inaccordance with this policy EXHIBIT B D.Liquidity The town's investment portfolio shall remain sufficiently liquid inorder to meet the operating requirements that may be reasonably foreseen.The investment portfolio should be composed insuch a way that securities mature concurrent with cash needs to meet required demands .Furthermore, since all possible cash demand cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternatively, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. E.Return The town's investment portfolio shall attain the highest rate of return through budgetary and economic cycles taking into account the constraints imposed by its safety objectives, cash flow considerations and state laws that restrict the placement of certain public funds.Return on investment is of secondary importance compared to the safety and liquidity objectives above. The investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall generally be held until maturity with the following exemptions: ∑A security with declining credit may be sold early to minimize loss of principal ∑A security swap that would improve the quality, expected return, or target duration in the portfolio ∑Liquidity needs of the portfolio require that the security be sold Section 3 -Standard of Care A. Delegationof Authority Authority to manage the investment program is granted to the Town Finance Director/CFO, under the supervision of the Town Manager. Responsibility of the operation of the daily investment program is delegated to the Finance Director/CFO, who shall carry out the operation of the investment program consistent with this investment policy. No employee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director/CFO. B. Prudence The standard of prudence to be used by the Finance Director/CFO shall be the "prudent person" standard and shall be applied inthe context of managing the overall portfolio.The Finance Director/CFO, shall exercise due diligence and not be liable for losses .The "prudent person" standard with respect to Town Investments shall be the exercise of judgment and care, with prudence,discretion and intelligence that a person would exercise in their own affairs, not for speculation, but for investment, considering the primary objectives set forth in Section 2 of this policy. C. Ethics and Conflicts of Interest Employees involved in the investment process should refrain from conducting personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees should disclose any material interests in financial institutions with which they conduct business. They should disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees shall refrain from undertaking personal investment transactions with the same individual that conducts business withthe Town. Section 4 - Safekeeping and Custody A. Internal Controls The Finance Director/CFO is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft or misuse. The controls shall be designed to prevent the loss of publicfunds arising from fraud, employee error, third party misrepresentation, unanticipated changes in financial markets, or imprudent actions by employees and officers of the Town. B. Delivery vs. Payment All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution prior to the release of funds. C. Safekeeping Securities will be held by an independent third-party custodian selected by the entity as evidenced by safekeeping receipts in the Town's name.The safekeeping institution shall annually provide a copy of their most recent report on internal controls. Section 5 -Authori zed Financial Dealers and Institutions The Finance Director/CFO will review the financial condition and registration of qualified bidders. Financial institutions and broker/dealers who would like to become qualified bidders for investment transactions with the Town must supply the following: ∑Audited financial statements ∑Proof of National Associationof Securities Dealers (NASD) certification ∑Proof of stated registration ∑Certification of having read and understood and agreeing to comply with the Town's investment policy ∑Evidence of adequate insurance coverage An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the investment officer. If the town utilizes an external investment advisor, the advisor may be authorized to transact with its own Approved Broker/Dealer List on behalf of the Town. In the event that the investment advisor utilizes its own Broker/Dealer List, the advisor will perform due diligence for the brokers/dealers on its Approved List. Section 6 - Investment Types A.Suitable and Authorized Investments ∑Authorized investments for the debt service reserve funds shall be consistent with those set forth in the trust indentures of the long term debtissuances ∑Fully insured or collateralized certificates of deposit (CD) in eligible depositories if the interest rate bid is 103% or more of the equivalent bond yieldof the offer sideoftreasury bills ∑Interest bearing saving accounts in qualified banks and savings and loan institutions ∑Repurchase agreements withmaximum maturity of 180 days ∑The pooled investment funds established by the state treasurer pursuant to A.RS.35-326 ∑Bonds or other evidence of indebtedness of the United States or any of its agencies or instrumentalities when the obligations are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States ∑Bonds or other evidences of indebtedness of this State,any county, city,town, or school district ∑Bonds, notes or evidences of indebtedness of any county or municipal district within this State which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations ,if they meet certain criteria as specified in A.RS .35-323 ∑Bonds, notes or other evidences of indebtedness issued by any municipal improvement district in this State to finance local improvements authorized by law, if the principal and the interest of the obligations are payable from assessments on real property within the local improvement district ∑Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist of dollar-denominated securities ∑Commercial paper, rated in the highest tier (e.g.,A-1, P-1,F-1,or D-1 orhigher) byanationally recognized rating agency ∑Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry at a minimum an “A” or better rating at the time of purchase, from at least two nationally recognized rating agencies. ∑Negotiable or brokered certificates of deposit issued by a nationally or state chartered bank or savings and loan association. B.Collateralization Collateralization of 102% will be required on two types of Town investments : certificates of depos itand repurchase agreements Section 7 -Investment Parameters A. Diversification: The investments shall be diversified by: ∑Limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities) ∑Limiting investment in securities that have higher credit risks, ∑Investing in securities with varying maturities, and ∑Investing a portion of the portfolio in readily available funds such as local government investment pools (LGIP’s), overnight repurchase agreements, or other overnight accounts to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. B. Maturities Reserve funds are subject to different requirements on maximum maturities than those for other Town funds according to the terms and provisions as outlined inthe trust indenture of the long term debt issuances To ensure liquidity the Town shall attempt to match its investments with anticipated cash flow requirements .As all possible cash demands cannot be anticipated, a portion should consist of securities with active secondary and resale markets. The Town will not invest in securities with maximum maturities greater than those allowed under A.RS. 35-323, Investment of PublicMonies. Currently maximum maturities are: ∑Securities and deposits: 5 years ∑Repurchase agreements :30/180 days inaccordance with A.R.S. 35- 323. C. CompetitiveProcurement Process/Use ofCooperative Contract Beforethe Town invests any public funds, a competitive procurement process should be conducted for the necessary services or investment instruments. If a specificmaturity date is required, either for cash flow purposes or in order to conform to maturity guidelines, bids will be requested for instruments ,which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would bemost advantageous. The competitive process will follow the policies and procedures outlined in the Town's Procurement Code and comply with A.R.S. 35-323. The Town may also choose to use an eligible existing cooperative contract provided that the contract meets all of the requirements of the Town's Procurement Standards. Section 8 -Reporting A.Methods The Finance Director/CFO shall prepare an investment report at least quarterly , including a management summary that provides an analysis of the current investment portfolio and the individual transactions executed over the last quarter. This management summary will be prepared in a manner which will allow the Town to ascertainwhether investment activities during the reporting period have conformed to the investment policy. The report m a y be provided to the Town Manager, Council and others as deemed necessary by the Town Finance Director/CFO .The report shall include the following: ∑Listing of individual securities held at the end of the reporting period ∑Realized and unrealized gains or losses resulting from appreciation or depreciation by listing the cost and market value of securities over a one- year duration that are not intended to be held until maturity ∑Average weighted yield to maturity of portfolio investments as compared to applicable benchmarks ∑Listing of investment bymaturity date ∑Percentage of the total portfolio which each type of investment represents Any outside investment manager shall submit quarterly investment reports to the Town that will be included in the Finance Director/CFO 's quarterly investment report.The Finance Director/CFO will review the report to ensure compliance with the policies set forth herein. B.Performance Standards The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during market/economic environment of stable interest rates.A series of appropriate benchmarks shall be established against which portfolio performance shall be compared onaregular basis. The benchmarks shall be reflective of the actual securities being purchased and risks undertaken, and shall have a similar weighted average maturity asthe portfolio. Section 9 -Adoptions and Amendments to this Policy A. Adoption The Town's investment policy shall be formally approved and adopted by resolution of the Town Council. B. Amendments The policy shall be reviewed on an annual basis. Any changes or amendments must beapproved bythe Town Council. Town Council Regular Session J. Meeting Date:06/06/2018 Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Appointment to the Planning and Zoning Commission (PZC) RECOMMENDATION: PZC has one vacancy. The PZC selection committee has recommended the following appointment: Greg Hitt EXECUTIVE SUMMARY: The selection committee has reviewed applications on file and is recommending Greg Hitt for the vacant seat. Mr. Hitt's application is attached for review. Please note, Mr. Hitt will be filling a vacant term ending 12/31/18. BACKGROUND OR DETAILED INFORMATION: The PZC was formed to hold public meetings and make recommendations to the Town Council on matters relating to the General Plan, zoning code amendments, rezoning and other land use requests. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve or deny) the appointment of Greg Hitt to the Planning and Zoning Commission for a partial term expiring December 31, 2018. Attachments Greg Hitt Redacted Applicaton Town Council Regular Session 1. Meeting Date:06/06/2018 Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 10 (BEER AND WINE STORE) LIQUOR LICENSE FOR CIRCLE K STORE #2741614, LOCATED AT 10410 N. LA CANADA DRIVE RECOMMENDATION: Staff recommends approval of this liquor license to the Arizona Department of Liquor Licenses and Control for the following reasons: 1. No protests to this license have been received. 2. The necessary background investigation was conducted by the Police Department. 3. The Police Department has no objection to the approval of the Series 10 Liquor License. EXECUTIVE SUMMARY: An application for a new Series 10 (Beer and Wine Store) Liquor License has been submitted by Owner/Agent Kim Kwiatkowski for Circle K Store #2741614 located at 10410 N. La Canada Dr. Kim Kwiatkowski has submitted all necessary paperwork to the Town of Oro Valley and the Arizona Department of Liquor Licenses and Control and has paid all related fees associated with applying for the liquor license ($500 Application Processing Fee). BACKGROUND OR DETAILED INFORMATION: This non-transferable, on-sale retail privileges liquor license allows a retail store to sell beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with the off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. In accordance with Section 4-201 of the Arizona Revised Statutes, the application was posted for 20 days on the premises of the applicant's property, ending May 23, 2018. No protests were received during this time period. Police Chief Danny Sharp completed a standard background check on Circle K Store #2741614 and Owner/Agent Kim Kwiatkowski. Chief Sharp has no objection to the approval of the Series 10 (Beer and Wine Store) License. FISCAL IMPACT: Per Ordinance No. (O)11-16, the Town of Oro Valley charges a $500 liquor license application processing fee to Per Ordinance No. (O)11-16, the Town of Oro Valley charges a $500 liquor license application processing fee to cover the costs incurred by the Town to process the application. Per Section 8-2-6 Schedule of the Oro Valley Town Code, persons licensed by the State of Arizona to deal in spirituous liquor within the Town shall pay an annual license fee of $80.00 to the Town. SUGGESTED MOTION: I MOVE to recommend (denial or approval) of the issuance of a Series 10 Liquor License to the Arizona Department of Liquor Licenses and Control for Kim Kwiatkowski of Circle K Stores Inc., located at 10410 N. La Canada Drive. Attachments Circle K Store Liquor License Town Council Regular Session 2. Meeting Date:06/06/2018 Requested by: Bayer Vella, Community and Economic Development Submitted By:Michael Spaeth, Community and Economic Development Case Number:OV1800713 Information SUBJECT: PUBLIC HEARING: ORDINANCE NO. (O)18-09, DISCUSSION AND POSSIBLE ACTION REGARDING A REZONING REQUEST FROM R1-144 TO R1-10 FOR A 16.1-ACRE PROPERTY LOCATED NEAR THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CANADA DRIVE, INCLUDING A REQUEST TO UTILIZE THE REDUCED LOT WIDTH AND REDUCED BUILDING SETBACK FLEXIBLE DESIGN OPTIONS RECOMMENDATION: The Planning and Zoning Commission recommends approval subject to the conditions listed in Attachment 1. The Commission, however, was split on the question of primary access to the site (staff Condition of Approval #6) and did not forward a recommendation on that specific issue. EXECUTIVE SUMMARY: The purpose of this item is to consider a proposed rezoning for a 16.1-acre property located near the northwest corner of Tangerine Road and La Cañada Drive (Attachment 2). The applicant's request (Attachment 3) is to rezone the property from R1-144 to R1-10 to develop a 27-lot residential subdivision and includes a request to utilize three flexible design options enabled by the Environmentally Sensitive Lands regulations: Reduced lot widths from 80 to 70 feet1. Reduced building setbacks Front from 25 to 20 feeta. Side from 10 to 7.5 feetb. Rear from 25 to 20 feetc. 2. Recreation Area Credit3. A General Plan Amendment for Medium Density Residential (with a maximum density of 2.5 homes per acre) was approved for the property in 2014. A density of 1.8 homes per acre is proposed, which is in the Low Density Residential land use range. The amendment set the stage for a future rezoning of the property to serve as a land use transition between the more intense commercial and tech park uses to the east and the rural, large-lot residential to the north and west. Furthermore, an increase in housing density is commonly seen near schools where there is a desire for households with school-age children to live nearby. The proposed subdivision is consistent with this trend and represents an appropriate and compatible land use to the adjacent Leman Academy. A rezoning application was originally filed in 2015 to enable development of a 37-lot residential subdivision on the property. The application was ultimately continued at the request of the applicant as there were still a number of outstanding concerns from the neighbors. The applicant has since worked with the surrounding property owners and revised the Tentative Development Plan (Attachment 4) to address some of the remaining concerns. The Tentative Development Plan (TDP) is summarized below with the previous (2015) design details shown in parenthesis: Total lots: 27 lots (previously 37 lots) Density: 1.8 du/ac (2.7 du/ac) Lot sizes: Lot sizes: Western lots: 12,000 sq.ft. (10,000 sq.ft.) Eastern lots: 10,000 sq. ft. (8,000 sq.ft.) Single-story building height restriction for all western lots (previously a mix of 1 and 2-story homes throughout the subdivision) The applicant’s site plan also includes: Restoration of approximately 1.2-acres of previously disturbed Critical Resource Area (CRA) within the on-site wash. A condition has been included in Attachment 1 regarding the zoning code required restoration. 6.6-acres of open space with enhanced buffer yards along the west and north boundaries Two access points Primary access via the existing commercial center east of the property Emergency access to Sunkist Road north of the property Staff does not support the current configuration for access to the site. As noted above, the primary access is proposed through the commercial center to the east. Both the Town Engineer and Police Chief do not support this configuration as it presents several issues. Most importantly, access through the commercial center will be impacted when the Leman Academy School completes their phase 2 expansion, something that is expected to double the current population of the school, and the associated increases in traffic. As future development occurs in the commercial area south of the school, traffic within the center will become more congested further impacting the proposed primary access. As such, staff has included a condition in Attachment 1 to require the primary access be located on Sunkist Road. The Planning and Zoning Commission considered the applicant's request at a public hearing on May 1, 2018. A majority of the discussion focused on the appropriate location for the primary access to the site, either through the existing commercial center to the east or from Sunkist Road to the north. Neighbors, specifically those along Sunkist Road, expressed concern regarding primary access on Sunkist Road and the associated increase in traffic. The Town Engineer responded by detailing the reasons for staffs recommendation for access on Sunkist Road. Key points are as follows: Sunkist Road is a public right-of-way and is open to vehicular traffic today. A connection to Sunkist Road from La Cañada Drive through the La Cañada Ridge residential subdivision has recently been constructed. This proposal entails extending the existing Sunkist Road pavement by approximately 500 feet. With the establishment of Leman Academy and their proposed expansion, traffic will continue to increase on Sunkist Road with or without primary subdivision access. Mixing primary subdivision traffic with the adjacent school and commercial center traffic represents a potential traffic safety concern. Ultimately, the Commission was split on this question and forwarded their recommendation of conditional approval for the project (subject to the conditions in Attachment 1) without a recommendation on the access question. BACKGROUND OR DETAILED INFORMATION: A. BACKGROUND Land Use Context The subject property has a General Plan Land Use designation of Medium Density Residential (MDR) and a zoning designation of R1-144, which are depicted in Attachment 5. Approvals to date 2004: Property annexed into the Town of Oro Valley 2014: Major General Plan Amendment approved for Medium Density Residential with a maximum of 2.5 homes per acre Site Conditions 16.1-acres Vacant Proposed Improvements 27 lots Minimum lot size 10,000 sq.ft. (12,000 sq.ft. for western lots) Single and two-story homes (homes on western lots are restricted to single-story) Single and two-story homes (homes on western lots are restricted to single-story) Restoration of approximately 1.2-acres of previously disturbed Critical Resource Area (CRA) within the on-site wash. A condition has been included in Attachment 1 regarding the required restoration. Enhanced buffer yards along: Western property line: 14 feet with enhanced vegetation Northern property line: 60 feet with enhance vegetation Approximately 6.6-acres of open space along the eastern and southern boundaries abutting the future commercial/tech park. Passive and active recreation areas Two access points Primary access via the existing commercial center east of the property Emergency access to Sunkist Road north of the property The proposed Tentative Development Plan includes a number of changes from previous submittals which are summarized in the table below: Key Topics 2015 proposal 2018 proposal Total number of lots 37 27 Overall project density 2.7 du/ac 1.8 du/ac Lot sizes Western lots 10,000 sq. ft.12,000 sq. ft. Eastern lots 8,000 sq. ft.10,000 sq. ft. Maximum building height Western lots 25 ft. 1 & 2 stories (per code)1 - story Eastern lots 25 ft. 1 & 2 stories (per code)25 ft. 1 & 2 stories (per code) Open Space 6.5 acres (40%)6.6 acres (40%) B. GENERAL PLAN CONFORMANCE ANALYSIS Rezoning applications are reviewed for conformance with the Your Voice, Our Future General Plan Land Use map, vision, guiding principals, goals and policies. The proposed rezoning is consistent the General Plan as it is within the allowed density range and will provide a land use transition between the school and tech park use to the east and large-lot residential uses to the west and north. Furthermore, it provides environmental conservation/restoration and nearby housing for employees within the adjacent technology park and other nearby employment areas. In summary, it supports the socio-economic goals expressed in the General Plan. Additional detail is provided in Attachment 6. C. ZONING CODE CONFORMANCE ANALYSIS The applicant's proposal is in conformance with all applicable Zoning Code standards. The applicant's Tentative Development Plan primarily conforms to the development standards of the R1-10 zoning district, with the exception of the requested Flexible Design Options. The following standards are notable for this proposal: Site Access: The Tentative Development Plan (TDP) includes two proposed access points. The primary access is proposed through the existing commercial center to the east with a secondary, emergency access proposed on Sunkist Road. Staff has concerns regarding the primary access through the existing commercial center, specifically as it relates to future traffic congestion within the center, and a condition has been included in Attachment 1 to require the primary access point be on Sunkist Road Primary access on Sunkist Road represents a safer, more efficient configuration than the proposed access through the school/commercial center to the east for the following reasons: Sunkist Road is a public right-of-way and is open to vehicular traffic today; A connection to Sunkist Road from La Cañada Drive through the La Cañada Ridge residential subdivision has recently been constructed. This proposal entails extending the existing Sunkist Road pavement by approximately 500 feet. With the establishment of Leman Academy and their proposed expansion, traffic will continue to increase on Sunkist Road with or without primary subdivision access. Mixing primary subdivision traffic with the adjacent school and commercial center traffic represents a potential traffic safety concern. Building Height: Building heights are limited to twenty-five feet (25’) and 2-stories. The applicant has agreed to limit the homes on the western boundary (nearest the existing large-lot residential to the west) to single-story. Neighborhood Compatibility: The proposed R1-10 zoning is in compliance with the Medium Density Residential designation on the General Plan Map and would serve as an appropriate land use transition from lower intensity residential land uses to the west, and the school and future commercial/technology park land uses to the east. The proposed site design includes larger 12,000 sq. ft. lots abutting rural (3-acre) lots to the west, and smaller lots (10,000 sq. ft.) abutting open space and a future technology park to the east. This helps serve as a transition to the lower densities to the north and west. Furthermore, the proposed density is more in line with the density range of the Low Density Residential land use designation. Open Space: The proposed rezoning preserves 6.6 - acres of open space (approximately 40% of the site) including restoring 1.2 - acres of previously disturbed wash area designated as Critical Resource Areas. A condition has been included in Attachment 1 regarding the required restoration. Environmentally Sensitive Lands (ESL) Environmentally Sensitive Open Space (ESOS) The subject property has two mapped Environmentally Sensitive Lands conservation categories: Critical Resource Area and Resource Management Area Tier 2. The riparian area traversing the larger Miller Ranch site, which serves as the eastern boundary of the subject property, is designated as Critical Resource Area (CRA). The proposed rezoning conserves approximately 95% of this area, consistent with the minimum requirement in the Zoning Code. The remainder of the site is designated Resource Management Area Tier 2 and requires twenty-five (25%) percent conservation. In combination with a proposed wash restoration credit of 1.2 - acres, the project conserves twenty-five (25%) percent of this conservation category as ESOS. Flexible Design Options The Environmentally Sensitive Lands requirements enable the use of incentives for conservation, or cluster subdivision design. These incentives, known as flexible design options are designed to encourage the preservation of additional natural open space while ensuring the applicant is able to develop the same number of lots as permitted under the base zoning district. The flexible design options are available to property when Environmentally Sensitive Open Space (ESOS) is conserved on twenty-five percent (25%) or more of the property. The applicant’s proposal provides approximately forty percent (40%) ESOS and has requested the use of the following flexible design options which require Town Council approval: Lot width reduction: The applicant has requested a lot width reduction from 80 feet (minimum required in the R1-10 zoning district) to 70 feet. A reduced lot width again helps to create the smaller footprint of the conservation subdivision design and results in the conservation of more contiguous open space. Staff supports the applicant's request for a reduced lot width. 1. Building setback reduction: The applicant has requested a reduction in the required building setbacks to correspond with the request for a reduced lot width. The request is as follows: Front from 25 feet to 20 feeta. Side from 10 feet to 7.5 feetb. Rear from 25 feet to 20 feetc. 2. When lot widths or sizes are reduced to foster a cluster style development, a reduction in the code required setbacks is necessary to maintain a useable building area on each lot. Further, a minimum of 20' shall be required for all driveways to ensure sufficient parking space is provided. As such, Staff supports the applicant's request for a building setback reduction. The following flexible design option has been requested by the applicant and does not require Town Council approval. As such, the request has been approved by the Planning and Zoning Administrator. Recreation Area credit: The applicant is requesting the recreation area (approximately 1 - acre) be credited1. toward the required Environmentally Sensitive Open Space (ESOS) for the site. A credit for passive and active recreation areas are permitted when uses are compatible with ESOS requirements. The permitted recreation uses include, among others, natural trails, benches, open air ramadas, horseshoe pits and other similar uses with impervious surfaces. D. PUBLIC PARTICIPATION Public notice has been provided: Notification of all property owners within 600 feet and extended area to include those residents notified during the prior General Plan Amendment application Homeowners Association mailing Advertisement in The Daily Territorial newspaper Post on property Post at Town Hall and on website Neighborhood Meetings Numerous neighborhood meetings have been held regarding the subject property, including this application and the previous General Plan Amendment and rezoning applications. A total of five neighborhood meetings have been held in addition to numerous informal meetings with neighbors to discuss their concerns. With this application, only one neighborhood meeting was held as there were no new issues or concerns raised regarding the proposed plan. This proposal has less of an impact than the previously proposed versions and discussion at the neighborhood meeting focused on the same issues raised relative to previous applications, namely lot size transition, view impacts, access and changing the character of the area. As such, it was determined that additional formal and larger scale neighborhood meetings were not likely to be productive. A copy of the neighborhood meeting summary notes are included as Attachment 7. Since the meeting, the applicant has met one-on-one with a number of adjacent property owners to revise the plan and address some of their concerns, including view impacts and the total number of lots. Several letters of support and protest from neighbors are included in Attachment 8 and 9. Planning and Zoning Commission Hearing The Planning and Zoning Commission considered the applicant's proposal at a public hearing on May 1, 2018. The meeting was well attended and discussion primarily focused on the future access to the subdivision. Ultimately, the Commission recommended conditional approval of the proposed rezoning, subject to the conditions listed in Attachment 1, with one exception. The Commission was split on the primary access question regarding Staff Condition 6 and did not forward a recommendation on that specific issue. A summary of the meeting discussion is provided below. Several neighbors, mainly those located along Sunkist Road, expressed concern over the anticipated increase in traffic should the primary access be located on Sunkist Road. The Town Engineer responded by detailing the reasons for staffs recommendation to require primary access be located on Sunkist Road as follows: Sunkist Road is a public right-of-way and is open to vehicular traffic today; A connection to Sunkist Road from La Cañada Drive through the La Cañada Ridge residential subdivision has recently been constructed. This proposal entails extending the existing pavement by approximately 500 feet. With the establishment of Lehman Academy and their proposed expansion, traffic will continue to increase on Sunkist Road with or without primary subdivision access. Mixing primary subdivision traffic with the adjacent school and commercial center traffic represents a potential traffic safety concern. Ultimately, the Commission was split on this question and forwarded their recommendation of conditional approval for the project (subject to the conditions in Attachment 1) without a recommendation on the access question. The staff report and draft meeting minutes are provided in Attachments 10 and 11 respectively. E. SUMMARY AND RECOMMENDATION In summary, there are a number of key factors regarding the proposed rezoning. Those factors include: The prior Major General Plan Amendment was approved for Medium Density Residential which set the framework for a future rezoning 1. The project density is less than the maximum density approved as part of the General Plan Amendment. In fact, the proposed density is more in-line with the Low Density Residential land use designation range. 2. The design serves as a land use transition between the higher intensity uses to the east and the lower intensity uses to the west 3. The applicant has worked with neighbors to minimize impacts including: Larger lot sizes on the lots nearest existing homes Single-story building height restrictions on western lots Reduced the overall number of lots from the previous application from 37 to 27 Incorporated an enhanced buffer yard on both the north and west boundaries to further screen the future subdivision 4. Safe and efficient access can be provided by using Sunkist Road, a public street with a paved connection to La Cañada Dr. 5. Based on the aforementioned factors, the Planning and Zoning recommends approval of the requested rezoning, subject to the conditions of approval included in Attachment 1, with one exception. The Commission was evenly split on the primary access question and did not provide a recommendation on that particular issue. FISCAL IMPACT: N/A SUGGESTED MOTION: Town Council may wish to consider one of the following motions: I MOVE to APPROVE Ordinance No. (O)18-09 the applicant's proposed rezoning, including use of the ESL Flexible Design Options for reduced lot widths and setbacks, based on a finding it is in conformance with the General Plan and all applicable zoning code requirements, subject to the conditions in Attachment 1. OR I MOVE to DENY Ordinance No. (O)18-09 the applicant's proposed rezoning, based on a finding that ___________________________________. Attachments (O)18-06 MILLER RANCH REZONE ATTACHMENT 2 - LOCATION MAP ATTACHMENT 3 - APPLICANT'S PROPOSAL ATTACHMENT 4 - REZONING TENTATIVE DEVELOPMENT PLAN ATTACHMENT 5 - GP.ZONING MAPS ATTACHMENT 6 - GP CONFORMANCE ANALYSIS ATTACHMENT 7 - NEIGHBORHOOD MEETING SUMMARY ATTACHMENT 8 - LETTERS OF SUPPORT ATTACHMENT 9 - PROTEST LETTERS ATTACHMENT 10 - 5.1.2018 PZC STAFF REPORT ATTACHMENT 11 - DRAFT 5.1.2018 PZC MEETING MINUTES ORDINANCE NO. (O)18-09 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING A REZONING REQUEST BY LAZARUS, SILVYN & BANGS, P.C. , FOR A 16.1 ACRE PROPERTY LOCATED NEAR THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CANADA DRIVE TO BE REZONED FROM R1-144 TO R1-10 AND A REQUEST TO UTILIZE THE REDUCED LOT WIDTH AND REDUCED BUILDING SETBACK FLEXIBLE DESIGN OPTIONS WHEREAS, Lazarus, Silvyn & Bangs, P.C., (the “Applicant”), applied for a rezoning from R1-144 to R1-10 for a 16.1 – acre property located near the northwest corner of Tangerine Rd and La Cañada Dr., see map of property as depicted on Exhibit “A” attached hereto; and WHEREAS, the current zoning of R1-144 allows one lot per 144,000 square feet; and WHEREAS, the Applicant wishes to change the zoning to R1-10 to develop a 27 – lot residential subdivision; and WHEREAS, the Application also requests use of two flexible design options enabled by the Environmentally Sensitive Lands regulations: 1) reduced lot widths from 80 feet to 70 feet, and 2) reduced building setbacks; and WHEREAS, the Applicant’s request for rezoning complies with the OVZCR; and WHEREAS, the Applicant's request for rezoning complies with the applicable General Plan requirements; and WHEREAS, on May 1, 2018, the Planning & Zoning Commission recommended approval subject to conditions for rezoning the property from R1-144 to R1-10 and two flexible design options with conditions; and WHEREAS, the Town Council has duly considered the Applicant’s request for rezoning for a 16.1 – acre property located near the northwest corner of Tangerine Road and La Canada Drive. NOW, THEREFORE BE IT ORDAINED by the Mayor and Council of the Town of Oro Valley, Arizona that the rezoning requested by the Applicant, applied for a rezoning and requested flexible design options for the property located near the northwest corner of Tangerine Road and La Canada Drive is hereby approved with the conditions attached hereto as Exhibit “B”. NOW THEREFORE BE IT FURTHER ORDAINED that: 1. All Oro Valley ordinances, resolutions or motions and parts of ordinances, resolutions or motions of the Council in conflict with the provision of this Ordinance are hereby repealed. 2. 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 the Mayor and Council of the Town of Oro Valley, Arizona, on this 6th day of June, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” MAP OF PROPERTY EXHIBIT “B” CONDITIONS OF APPROVAL PLANNING 1. Homes on Lots 1-7 and 24-26 as shown on the rezoning Tentative Development Plan (dated 5-1-18) are limited to 1-story. 2. Homes on Lots 1-7 as shown on the rezoning Tentative Development Plan (dated 5-1-18) are limited to a minimum lot size of 12,000 sf. 3. The applicant shall restore the wash along the eastern boundary of the property. The required restoration of the wash shall be completed prior to 35% of building permits within the subdivision (10 homes) being issued. 4. Enhanced buffer yards (western and northern boundaries) shall include a minimum of 50% 24-inch box trees or salvaged trees as shown in Site Analysis Exhibit II-15-A. 5. The subdivisions governing C, C and R’s shall include an acknowledgement of livestock properties, and associated impacts, within the area. 6. Address all comments in letter dated 4/17/2018 ENGINEERING 7. Primary access shall be provided on Sunkist Road. 8. Provide an updated Traffic Impact Analysis documenting the required access from Sunkist Road, including verification of the corresponding existing left-turn lane capacity along La Cañada Drive. 9. The developer shall improve Sunkist Road along the property frontage and shall tie-into the portion of Sunkist Road improved by the La Canada Ridge subdivision to the east. Sunkist Road improvements shall include an all-weather access drainage crossing, asphalt pavement and a concrete sidewalk along the south side of the street. LOCATION MAP MILLER RANCH (OV1800713) Attachment 2 GENERAL PLAN MAP MILLER RANCH (OV1800713) Attachment 5 ZONING MAP MILLER RANCH (OV1800713) Attachment 5 ATTACHMENT 6 MILLER RANCH REZONING GENERAL PLAN AND ZONING CODE CONFORMANCE ANALYSIS General Plan Analysis Rezoning applications are reviewed for conformance with the Your Voice, Our Future General Plan Land Use map, vision, guiding principals, goals and policies. A discussion of the applications conformance with each is provided below. General Plan Land Use Map The subject property has a land use designation of Medium Density Residential which permits a range of 2.1 to 5 homes per acre. The Major General Plan Amendment approved in 2014 capped the permitted density at no more than 2.5 homes per acre. As such, the proposed density of 1.8 homes per acre is below the maximum allowed and is consistent with the approved land use designation. Developments less than 2.0 homes per acre are within range of Low Density Residential. General Plan Vision, Guiding Principals, Goals and Policies The Your Voice, Our Future General Plan Vision and several applicable Goals and Policies are included below (in italics) followed by staff commentary. Vision "Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro valley will keep it's friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town's lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views" Goals and Policies  Goal K: The proactive conservation, protection and restoration of environmentally sensitive lands, natural resources and habitats and lands with high scenic value  Goal V: Neighborhoods that include access and effective transitions to open space, recreation and schools and that are supported by shopping and services which meet daily needs  Goal X: Effective transitions between differing land uses and intensities in the community  Policy LU.5: Provide diverse land uses that meet the Town's overall needs and effectively transition in scale and density to adjacent neighborhoods Staff Commentary: The proposed rezoning is consistent with the vision statement and the above goals and policies as it will provide a land use transition from a school and tech park and large lot residential uses. Furthermore, it provides environmental conservation/restoration and nearby housing for employees within the adjacent technology park and other nearby employment areas. In sum, it supports the socio - economic goals expressed in the General Plan. Further, the proposed density and lot sizes within the subdivision serve as an effective transition between higher intensity uses to the east and the lower intensity residential to the west. 1 Neighborhood Meeting Summary Miller Ranch 30-lot Subdivision Proposed Land Use Change (Rezoning) January 10, 2018 6:00 – 7:30 PM Council Chambers 1. Introductions and Welcome Meeting Facilitator Michael Spaeth, Principal Planner, introduced the Oro Valley staff Rosevelt Arellano, Senior Planner, as the Town’s project manager. Approximately 26 residents and interested parties attended the meeting, including Council Members Rodman, Peña, and Hornat and Planning and Zoning Commissioners Swope and Gribb. 2. Staff Presentation Rosevelt Arellano, Senior Planner, provided a presentation that included:  Applicant’s request  Chronology of previous site plan designs  Application process  Public participation opportunities 3. Applicant Presentation Keri Silvyn of Lazarus, Silvyn and Bangs provided a presentation detailing the applicant’s proposal, which included:  Project overview  Site plan design (e.g., lot layout, access, building heights, etc.)  View perspectives from Sunkist Road and the western property line 4. Public Questions & Comments Following is a summary of additional questions and comments: Traffic Circulation and View Preservation:  Neighbors do not support access on Sunkist Road.  Why can’t the project be accessed from Tangerine Road?  Neighbors expressed concerns with the proposed access on La Cañada Drive being shared with the adjacent school and future tech park.  A neighbor stated that Sunkist Road should be improved with all-weather access and dust free conditions.  Neighbors expressed concerns with Pima County not maintaining Sunkist Road. Infrastructure:  Who is the water utility provider for this development?  What are the final improvements on Sunkist Road after the proposed water line is installed? Land Use:  Can the applicant use the existing wash and/or floodplain as part of the Town’s required open space?  Did the first rezoning application include one and two-story homes?  What type and how much landscaping is being proposed in the western and northern bufferyards?  Where will the proposed two-story homes be located?  What is the sideyard requirement for the most northwesterly lot?  Neighbors do not support the proposed land use transition of school/tech park to small lots to rural lots. 2 View Preservation:  The neighbors stated that the applicant’s viewshed analysis is not accurate.  How tall are the proposed homes from the finished floor elevation? Other:  Who created the Town’s Environmentally Sensitive Lands Map? It was determined that a second neighborhood meeting would not be held as no new issues and/or concerns were raised during the meeting. Mr. Spaeth closed the meeting, thanked everyone for their attendance and encouraged everyone to contact Mr. Arellano, the Town’s project manager, with any additional thoughts, comments or concerns. Robert Smith 1651 W. Limewood Dr. Tucson, AZ 85755 February 13, 2018 To Whom It May Concern Five years ago my family and I moved to our rural property on Limewood Dr. between La Cholla and La Canada. Our home is just west of the proposed Miller Ranch residential project sitting on nearly 4 acres. We chose the property specifically because it is a rural lifestyle within proximity to services. As development continues to happen around us, we recognize the reality that vacant land is unlikely to stay vacant as much as we would like it to. We must grow our tax base to keep taxes competitive and expand services and job opportunities. In fact, service expansion in this area may bring additional infrastructure into our area like water and high-speed internet which could improve values in the whole area. Single family homes transitioning between us and the office parcels is good planning practice and we have heard of the former renditions calling for multi-family homes. That high level of density would be very detrimental to our rural lifestyle. We appreciate the multiple revisions that have been made as the developer has made clear efforts to reasonably accommodate residential concerns and we support this proposed development and rezoning. Sincerely yours, Robert Smith- Family of 5. April 30, 2018 Ted Maxwell 11095 N Broadstone Dr Oro Valley, AZ 85737 To Whom It May Concern: I live at 11095 N. Broadstone Drive in the Town of Oro Valley and own two properties in the neighborhood near the proposed Miller Ranch project at Tangerine Road and La Canada Drive. I would like to offer my support of the project. With the development of Leman Academy of Excellence and future additional commercial/business along Tangerine and La Canada, a single-family residential development along the western edge of the Miller Ranch property provides a proper and reasonable transition to the larger lot development in Pima County. The owner of the project has committed to changes intended to make that transition while preserving the views and sense of place of the larger lots located in the area. Some of the projects specifics include: • The overall density of the project is less than 2 homes per acre, which is an appropriate transition between the commercial developments. • A commitment to building only single-story homes along the western boundary of the Miller Ranch project to lessen the project’s impact on my views. • Proposed larger landscape buffers along the north and west to help mitigation and provide a transition to lower density homes. • Larger, mature trees along the west and northern edges in the landscape border outside of the walls of the Miller Ranch houses to create a visual buffer of the project. I understand the owner has been meeting with the closest neighbors to the project and I really appreciate the owner’s willingness to listen to neighbors’ concerns and work with them to come up with solutions. I find Oro Valley an incredible place to live. Our city’s ability to continue to grow and develop in a smart and effective manner will continue to improve our resident’s access to goods and service, our economic development and our quality of life. I believe the Miller Ranch project is a great example of how this can be accomplished. Please support this project. Sincerely, Ted Maxwell We own the property at 1450 W. Sunkist Road, and have lived on this property for almost 9 years. We have seen a lot of changes over the years and understand that some changes are inevitable. Over the past few years, we have worked with the owners of the Miller Ranch area. They have shown a willingness to listen to our concerns regarding the many changes being made to the 16 acres to our south in addition to the newly developed Lehman Academy. As our family has stated in every meeting, hearing, and opportunity for public comment – we understand that this property will be developed, but we are adamantly opposed to Sunkist Road being the primary entrance to this project. We are the closest and most impacted neighbor relative to the Sunkist Road entrance. We know that the developer has heard our request and has agreed to accommodate the primary entrance at either La Canada through the Tech Park/Commercial development or even along Tangerine Rd. It is Town staff making it difficult for the developer to accomplish that goal. We are absolutely opposed to Sunkist being the primary entrance as we do not believe it is necessary and it will completely destroy our quality of life. We have also voiced concerns over the years about adequate buffers along the northern side of the proposed project. We have requested additional landscaping and have asked for restriction to single- story homes along the northern edge. The owner/developer has agreed to all of the following requests: removing the homes at the northern ends of the cul-de-sac, providing a 20-foot landscape buffer, restricting access to Sunkist to emergency only with no paving, restricting the northern two lots to single-story homes, and working with us to determine the type and size of landscaping along the northern edge of this project. In addition, the owner/developer has agreed to increase the landscaping on the northern end of the Lehman Academy property. While we know some of the residents in the area are concerned about the density at under 2 residences per acre (albeit on smaller lots due to the wash area), that is not one of our concerns as long as Sunkist is NOT the primary entrance. We really appreciate Michael Sarabia and his team working with us to address our concerns. DO NOT MAKE SUNKIST THE PRIMARY ENTRANCE TO THIS DEVELOPMENT. Our way of life and property value is at stake here! Thank you – Pat and Sarah McGowan 1 Spaeth, Michael From:Allan <usmcswafford@gmail.com> Sent:Thursday, April 26, 2018 7:05 AM To:Spaeth, Michael Cc:Robin M. Large; Ana Subject:Miller Ranch Attachments:27-lot_layout_4-24-18.pdf Mr. Spaeth, Good morning. Ms. Large and Mr. Sarabia have met with my wife and I twice regarding the Miller Ranch development. We have also corresponded with Ms. Large via email. We have expressed our privacy issues with them and they were willing to modify their plans based on our concerns. Specifically, they agreed to only build one-storey homes and agreed to not build any houses directly in front of our home. I have also attached the latest site plan they sent us. If you have any questions regarding our meetings with the development team, please do not hesitate to contact me. Respectfully, Allan Swafford May 21, 2018 Mr. Spaeth, Mr. Laws, Oro Valley Town Council, and Oro Valley Staff, My name is Chuck Boreson and my property line is diagonal to the NW corner of Miller Ranch Development. In reference to the comments made at the May 1, 2018 P&Z meeting, I would be interested to know if any vehicles, in addition to the 18 exiting daily for an hour, have been considered in figuring the amount of traffic going in and out on Sunkist Rd. For example, service vehicles (garbage collection, mail delivery, etc.), and visitors of the residents in the housing development. Most anyone using Google Maps coming from the west and wanting access to the Miller Ranch development will be directed to use Sunkist Rd. as the shortest route, or the longer/slower route would be to go to La Canada and turn back west. Common sense tells me air quality, lack of law enforcement and an ongoing recent increase in traffic volume should be considered and studied before adding even more traffic to an unmaintained dirt road. My comments below are concerns and observations with only one fact included. The fact is there has already been one roll over accident where a vehicle has been totaled. I know this because the vehicle went through my fence bordering Sunkist Rd. and the vehicle finally stopped when it hit a large mesquite tree. I did not see the accident but the driver was very likely driving unsafely and lost control of the vehicle. As for my observations regularly if not daily, vehicles are sometimes driving at unsafe speeds and in my estimate in excess of 40-50 mph. Health concerns including Valley Fever, respiratory conditions etc. are concerns I have because of the significant increase in dust. Oro Valley’s General Plan Vision under section B states: “The town’s lifestyle continues to be defined by a strong sense of community, and a high regard for safety…” The question I have for the OV staff an Town Council is this. Is there any harm that could come from at least doing an unbiased study about how the hazardous road situation could mitigated if a road to Sunkist Rd is opened from Miller Ranch? Allowing even more traffic onto Sunkist Rd. is going to intensify an existing serious problem. I hope the OV staff and Town Council will consider these comments and observations and how they could work together with the surrounding community and/or Pima County to be a part of the solution and not part of the problem of adding more traffic to an unmaintained dirt road. I want to thank Mr. Spaeth and Mr. Laws for replying to my emails and reaching out to me. Thanks for your consideration and time. Chuck Boreson,DVM 1550 W Sunkist Road Tucson, AZ. Planning & Zoning Commission AGENDA ITEM: 2. Meeting Date:05/01/2018 Requested by: Bayer Vella, Community and Economic Development Submitted By:Michael Spaeth, Community and Economic Development Case Number:OV1800713 SUBJECT: PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A REZONING REQUEST FROM R1-144 TO R1-10 FOR A 16.3-ACRE PROPERTY LOCATED NEAR THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CANADA DRIVE, INCLUDING A REQUEST TO UTILIZE THE REDUCED LOT WIDTH, REDUCED BUILDING SETBACK AND RECREATION AREA CREDIT FLEXIBLE DESIGN OPTIONS, OV1800713 RECOMMENDATION: Staff recommends approval subject to the conditions listed in Attachment 1. EXECUTIVE SUMMARY: The purpose of this item is to consider a proposed rezoning for a 16.3-acre property located near the northwest corner of Tangerine Road and La Cañada Drive (Attachment 2). The applicants request (Attachment 3) is to rezone the property from R1-144 to R1-10 to develop a 28-lot residential subdivision and includes a request to utilize three flexible design options enabled by the Environmentally Sensitive Lands regulations: Reduced lot widths from 80 feet to 70 feet1. Reduced building setbacks Front from 25 feet to 20 feeta. Side from 10 feet to 7.5 feetb. Rear from 25 feet to 20 feetc. 2. Recreation Area Credit3. A General Plan Amendment for Medium Density Residential (with a maximum density of 2.5 homes per acre) was approved for the property in 2014. The amendment set the stage for a future rezoning of the property to serve as a land use transition between the more intense commercial and tech park uses to the east and the rural, large-lot residential to the north and west. A rezoning application was filed in 2015 to enable development of a 37-lot residential subdivision on the property. The application was ultimately continued at the request of the applicant as there were still a number of outstanding concerns from neighbors. The applicant has since worked with the surrounding property owners and revised the Tentative Development Plan (Attachment 4) to address some of the remaining concerns (see table below). Previous (2014)Current (2018) Total number of lots 37 28 Overall project density 2.7 du/ac 1.8 du/ac Lot sizes Western lots 10,000 sq. ft.12,000 sq. ft. Eastern Lots 8,000 sq. ft.10,000 sq. ft. Maximum building height Western lots 25 ft. 1 & 2 stories (per code)1 - story Eastern Lots 25 ft. 1 & 2 stories (per code)25 ft. 1 & 2 stories (per code) Open Space 6.5 acres (40%)6.6 acres (40%) The applicant’s site plan also includes: Restoration of approximately 1.2-acres of previously disturbed Critical Resource Area (CRA) within the on-site wash. A condition has been included in Attachment 1 regarding the required restoration. 6.6-acres of open space with enhanced buffer yards along the west and north boundaries Two access points Primary access via the existing commercial center east of the property Emergency access to Sunkist Road north of the property Staff does not support the current configuration for access to the site. As noted above, the primary access is proposed through the commercial center to the east. Both the Town Engineer and Police Chief do not support this configuration as it presents several issues. Most importantly, access through the commercial center will be impacted when the Leman Academy School completes their Phase 2 expansion, something that is expected to double the current population of the school, and the associated increases in traffic. As future development occurs in the commercial area south of the school, traffic within the center will become more congested further impacting the proposed primary access. As such, staff has included a condition in Attachment 1 to require the primary access be located on Sunkist Road. Staff recommends approval of the applicant’s request, subject to the conditions listed in Attachment 1, most notably the condition relative to access on Sunkist Road. BACKGROUND OR DETAILED INFORMATION: A. BACKGROUND Land Use Context The subject property has a General Plan Land Use designation of Medium Density Residential (MDR) and a zoning designation of R1-144, which are depicted in Attachment 5. Approvals to date 2004: Property annexed into the Town of Oro Valley 2014: Major General Plan Amendment approved for Medium Density Residential with a maximum of 2.5 homes per acre Site Conditions 16.3-acres Vacant Proposed Improvements 28 lots Minimum lot size 10,000 sq.ft. (12,000 sq.ft. for western lots) Single and two-story homes (homes on western lots are restricted to single-story) Restoration of approximately 1.2-acres of previously disturbed Critical Resource Area (CRA) within the on-site wash. A condition has been included in Attachment 1 regarding the required restoration. Enhanced buffer yards along: Western property line: 14 feet with enhanced vegetation Northern property line: 60 feet with enhance vegetation Approximately 6.6-acres of open space along the eastern and southern boundaries abutting the future commercial/tech park. Passive and active recreation areas Two access points Primary access via the existing commercial center east of the property Emergency access to Sunkist Road north of the property The proposed Tentative Development Plan includes a number of changes from previous submittals which are summarized in the table below: 2014 proposal 2018 proposal Total number of lots 37 28 Overall project density 2.7 du/ac 1.8 du/ac Lot sizes Western lots 10,000 sq. ft.12,000 sq. ft. Eastern Lots 8,000 sq. ft.10,000 sq. ft. Maximum building height Western lots 25 ft. 1 & 2 stories (per code)1 - story Eastern Lots 25 ft. 1 & 2 stories (per code)25 ft. 1 & 2 stories (per code) Open Space 6.5 acres (40%)6.6 acres (40%) B. GENERAL PLAN CONFORMANCE ANALYSIS Rezoning applications are reviewed for conformance with the Your Voice, Our Future General Plan Land Use map, vision, guiding principals, goals and policies. A discussion of the applications conformance with each is provided below. General Plan Land Use Map The subject property has a land use designation of Medium Density Residential which permits a range of 2.1 to 5 homes per acre. The Major General Plan Amendment approved in 2014 capped the permitted density at no more than 2.5 homes per acre. As such, the proposed density of 1.8 homes per acre is below the maximum allowed and is consistent with the approved land use designation. Developments less than 2.0 homes per acre are within range of Low Density Residential. General Plan Vision "Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro valley will keep it's friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town's lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views" Staff Commentary : The proposed rezoning is consistent with the vision statement as it will provide a land use transition from a school and tech park and large lot residential uses. Furthermore, it provides environmental conservation/restoration and nearby housing for employees within the adjacent technology park and other nearby employment areas. In sum, it supports the socio-economic goals expressed in the General Plan. Further, the proposed density and lot sizes within the subdivision serve as an effective transition between higher intensity uses to the east and the lower intensity residential to the west. General Plan principals, goals and policies The application is in conformance with the Your Voice, Our Future General Plan guiding principals, goals and policies. Several applicable principals, goals and policies regarding the applicant's proposal are listed below: Goal K: The proactive conservation, protection and restoration of environmentally sensitive lands, natural resources and habitats and lands with high scenic value Goal V: Neighborhoods that include access and effective transitions to open space, recreation and schools and that are supported by shopping and services which meet daily needs Goal X: Effective transitions between differing land uses and intensities in the community Policy LU.5: Provide diverse land uses that meet the Town's overall needs and effectively transition in scale and density to adjacent neighborhoods C. ZONING CODE CONFORMANCE ANALYSIS The applicant's proposal is in conformance with all applicable Zoning Code standards. The applicant's Tentative Development Plan primarily conforms to the development standards of the R1-10 zoning district, with the exception of the requested Flexible Design Options. The following standards are notable for this proposal: Site Access: The Tentative Development Plan (TDP) includes two proposed access points. The primary access is proposed through the existing commercial center to the east with a secondary, emergency access proposed on Sunkist Road. Staff has concerns regarding the primary access through the existing commercial center, specifically as it relates to future traffic congestion within the center. The Leman Academy will soon begin construction on the second phase of the school, which is expected to double the current student population. This increase in population will also result in an increase in traffic within the center. Furthermore, when the vacant parcels within the commercial/tech park areas build out, traffic within the center is only expected to increase. Considering the future increases in traffic within the center, a condition has been included in Attachment 1 to require the primary access point be on Sunkist Road. Building Height: Building heights are limited to twenty-five feet (25’) and 2-stories. The applicant has agreed to limit the homes on the western boundary (nearest the existing large-lot residential to the west) to single-story. Neighborhood Compatibility: The proposed R1-10 zoning is in compliance with the Medium Density Residential designation on the General Plan Map and would serve as an appropriate land use transition from lower intensity residential land uses to the west, and the school and future commercial/technology park land uses to the east. The proposed site design includes larger 12,000 sq. ft. lots abutting rural (3-acre) lots to the west, and smaller lots (10,000 sq. ft.) abutting open space and a future technology park to the east. This helps serve as a transition to the lower densities to the north and west. Open Space: The proposed rezoning preserves 6.6 - acres of open space (approximately 40% of the site) including restoring 1.2 - acres of previously disturbed wash area designated as Critical Resource Areas. A condition has been included in Attachment 1 regarding the required restoration. Environmentally Sensitive Lands (ESL) Environmentally Sensitive Open Space (ESOS) The subject property has two mapped Environmentally Sensitive Lands conservation categories: Critical Resource Area and Resource Management Area Tier 2. The riparian area traversing the larger Miller Ranch site, which serves as the eastern boundary of the subject property, is designated as Critical Resource Area (CRA). The proposed rezoning conserves approximately 95% of this area, consistent with the minimum requirement in the Zoning Code. The remainder of the site is designated Resource Management Area Tier 2 and requires twenty-five (25%) percent conservation. In combination with a proposed wash restoration credit of 1.2 - acres, the project conserves twenty-five (25%) percent of this conservation category as ESOS. Flexible Design Options The Environmentally Sensitive Lands requirements enable the use of incentives for conservation, or cluster subdivision design. These incentives, known as flexible design options are designed to encourage the preservation of additional natural open space while ensuring the applicant is able to develop the same number of lots as permitted under the base zoning district. The flexible design options are available to property when Environmentally Sensitive Open Space (ESOS) is conserved on twenty-five percent (25%) or more of the property. The applicant’s proposal provides approximately forty percent (40%) ESOS and has requested the use of the following flexible design options which require Town Council approval: Lot width reduction: The applicant has requested a lot width reduction from 80 feet (minimum required in the R1-10 zoning district) to 70 feet. A reduced lot width again helps to create the smaller footprint of the conservation subdivision design and results in the conservation of more contiguous open space. Staff supports the applicant's request for a reduced lot width. 1. Building setback reduction: The applicant has requested a reduction in the required building setbacks to correspond with the request for a reduced lot width. The request is as follows: Front from 25 feet to 20 feeta. Side from 10 feet to 7.5 feetb. Rear from 25 feet to 20 feetc. 2. When lot widths or sizes are reduced to foster a cluster style development, a reduction in the code required setbacks is necessary to maintain a useable building area on each lot. Further, a minimum of 20' shall be required for all driveways to ensure sufficient parking space is provided. As such, Staff supports the applicant's request for a building setback reduction. The following flexible design option has been requested by the applicant and does not require Town Council approval. As such, the request has been approved by the Planning and Zoning Administrator. Recreation Area credit: The applicant is requesting the recreation area (approximately 1 - acre) be credited toward the required Environmentally Sensitive Open Space (ESOS) for the site. A credit for passive and active recreation areas are permitted when uses are compatible with ESOS requirements. The permitted recreation uses include, among others, natural trails, benches, open air ramadas, horseshoe pits and other similar uses with impervious surfaces. 1. Engineering The Site Analysis addresses issues related to drainage and traffic as follows: Drainage: The proposed rezoning request acknowledges that the development will be designed so that post-developed drainage conditions are consistent with pre-developed conditions in accordance with Town requirements. The request also acknowledges that the project will comply with the requirements of the Town of Oro Valley Drainage Criteria. Traffic: A traffic impact analysis was provided to evaluate the effect of additional traffic on surrounding roadways. One point of ingress/egress is proposed from La Cañada Drive through the east side of the Miller Ranch development. However, staff is concerned with the proposed design which results in residential access through the center of the commercial development and adjoining Leman Academy property. Access through a commercial center is not typical of a residential subdivision street design due to lower speeds associated with parking lots, the greater number and close spacing of intersections within parking lot areas, limited sight visibility and higher commercial traffic volumes. Furthermore, staff’s concern is even greater in this scenario due to the daily school traffic that will share the same commercial access drives, particularly during the morning and afternoon drop-off and pick-up periods. Therefore, staff is requiring access be provided via Sunkist Road which is a public roadway. Access directly to Sunkist Road will require the developer to improve the roadway to a typical public street standard. It should be noted that a portion of Sunkist Road is already being improved by the developer of the La Cañada Ridge subdivision which is currently under construction. This Miller Ranch residential development, if approved, will be required to tie into those improvements and continue them west along the property frontage to include paving, sidewalk on the south side and all-weather access. D. PUBLIC PARTICIPATION Public notice has been provided: Notification of all property owners within 600 feet and extended area to include those residents notified during the prior General Plan Amendment application Homeowners Association mailing Advertisement in The Daily Territorial newspaper Post on property Post at Town Hall and on website Neighborhood Meetings Numerous neighborhood meetings have been held regarding the subject property, including this application and the previous General Plan Amendment and rezoning applications. A total of five neighborhood meetings have been held in addition to numerous informal meetings with neighbors to discuss their concerns. With this application, only one neighborhood meeting was held as there were no new issues or concerns raised regarding the proposed plan. This proposal has less of an impact than the previously proposed versions and discussion at the neighborhood meeting focused on the same issues raised relative to previous applications, namely lot size transition, view impacts and changing the character of the area. As such, it was determined additional neighborhood meetings were not going to result in tangible changes to the overall plan. A copy of the neighborhood meeting summary notes are included as Attachment 6. Since the meeting, the applicant has met and worked with a number of adjacent property owners to revise the plan to address some of their concerns, specifically view impacts and the total number of lots. Several letters of support from neighbors are included in Attachment 7. Staff has received one letter of protest which is included as Attachment 8. E. SUMMARY AND RECOMMENDATION In summary, there are a number of key factors regarding the proposed rezoning. Those factors include: The prior Major General Plan Amendment was approved for Medium Density Residential which set the framework for a future rezoning 1. The project density is less than the maximum density approved as part of the General Plan Amendment2. The design serves as a land use transition between the higher intensity uses to the east and the lower intensity uses to the west 3. The applicant has worked with neighbors to minimize impacts including: Larger lot sizes on the lots nearest existing homes Single-story building height restrictions on western lots Reduced the overall number of lots from the previous application from 37 to 28 Incorporated an enhanced buffer yard on both the north and west boundaries to further screen the future subdivision 4. Based on the aforementioned factors, staff recommends approval of the requested rezoning, subject to the conditions of approval included in Attachment 1. FISCAL IMPACT: N/A SUGGESTED MOTION: The Planning and Zoning Commission may wish to consider one of the following motions: I MOVE to recommend approval of the proposed rezoning, including use of the ESL Flexible Design Options for reduced lot widths and setbacks, based on a finding it is in conformance with the General Plan and all applicable zoning code requirements, subject to the conditions in Attachment 1. OR I MOVE to recommend denial of the proposed rezoning, based on a finding that ___________________________________. Attachments ATTACHMENT 1 - CONDITIONS OF APPROVAL ATTACHMENT 2 - LOCATION MAP ATTACHMENT 3 - APPLICANT'S PROPOSAL ATTACHMENT 4 - REZONING TENTATIVE DEVELOPMENT PLAN ATTACHMENT 5 - GP.ZONING MAPS ATTACHMENT 6 - NEIGHBORHOOD MEETING SUMMARY ATTACHMENT 7 - LETTERS OF SUPPORT ATTACHMENT 8 - LETTER OF PROTEST MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION May 1, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Chair Hurt called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Charlie Hurt, Chair Melanie Barrett, Vice Chair Tom Drzazgowski, Commissioner Thomas Gribb, Commissioner Bob Swope, Commissioner Nathan Basken, Commissioner EXCUSED: Don Cox, Commissioner STAFF PRESENT: Bayer Vella, Interim Community and Economic Development Director Paul Keesler, Town Engineer/Public Works Director David Laws, Permitting Manager Council Liaison Bill Rodman Councilmember Joe Hornat Vice Mayor Lou Waters PLEDGE OF ALLEGIANCE Chair Hurt led the Commission and audience in the Pledge of Allegiance. CALL TO AUDIENCE There were no speaker requests. COUNCIL LIAISON COMMENTS Council Liaison Bill Rodman reported on the recent Town Council approvals: the Final Plat for Phase I for the Villages of Silverhawke and the Final Plat for Viewpointe II at Vistoso Trails. At the next Council meeting on May 2, depending on Commission's vote tonight, Council will review the surgical office Conditional Use Permit case. At the upcoming May 16 meeting, the Capella rezoning and the electronic message board cases will be reviewed. REGULAR SESSION AGENDA 1. REVIEW AND APPROVAL OF THE APRIL 3, 2018 REGULAR SESSION MEETING MINUTES MOTION: A motion was made by Commissioner Gribb and seconded by Commissioner Basken to approve the April 3, 2018 regular session meeting minutes as written. MOTION carried, 5-0. with Tom Drzazgowski, Commissioner abstained. 2. PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A REZONING REQUEST FROM R1-144 TO R1-10 FOR A 16.3-ACRE PROPERTY LOCATED NEAR THE NORTHWEST CORNER OF TANGERINE ROAD AND LA CANADA DRIVE, INCLUDING A REQUEST TO UTILIZE THE REDUCED LOT WIDTH, REDUCED BUILDING SETBACK AND RECREATION AREA CREDIT FLEXIBLE DESIGN OPTIONS, OV1800713 Principal Planner Michael Spaeth provided a presentation that included the following: - Purpose - Location - Proposal - 2014 General Plan Amendment - Site Plan Revisions - Rezoning Request Review Tools The presentation was turned over to Permitting Manager David Laws to speak on traffic concerns. Mr. Laws reiterated Staff is requesting access be provided off Sunkist Road for two key reasons: (1) Sunkist Road east of this property was recently paved and this request would extend and enhance those improvements, (2) it is the best and safest access for this project. La Cañada Road is currently at less than 20% capacity; this project would add less than 5% new traffic. During the morning and evening rush hour time frames, it is expected that less than 20 cars will be traveling in and out of this subdivision. Mr. Spaeth then continued with his presentation: - Environmentally Sensitive Lands - Public Participation - Revised Conditions of Approval - Summary and Recommendation Keri Silvyn of Silvyn, Lazarus and Bangs, representing the property owne r, provided a presentation that included the following: - Approved General Plan Amendment - Previous Rezoning Tentative Development Plans - Leman Academy - Current Rezoning Request - Background Information and the Concept Plan - West Cross-sections - North Cross-sections - Viewshed Studies - View 1, View 2, View 3 - Outreach with Neighbors - Photo Simulations from specific neighbors' properties - Rezoning submittal - Revised Concept Plan - Updated Photo Simulations Discussion ensued amongst the Board, applicant and staff. Chair Hurt opened the public hearing. The following individuals spoke on Agenda Item 2: Alyssa Page Pat McGowan The following individuals spoke as opposed to Agenda Item 2: Chuck Boreson Timothy Bohen, Oro Valley resident Sarah McGowan Richard Paquette Chair Hurt closed the public hearing. MOTION: A motion was made by Commissioner Drzazgowski and seconded by Commissioner Gribb to recommend approval of the proposed rezoning, including use of the ESL Flexible Design Options for reduced lot widths and setbacks, based on the finding it is in conformance with the General Plan and all applicable zoning code requirements, subject to the conditions in Attachment 1 with the change that the number one Engineering condition requiring access off Sunkist Road not be included. Mr. Vella asked for clarification if the motion referred to the new conditions due to the changed tentative development plan. Commissioner Drzazgowski stated it included everything discussed, including the new conditions, except for the Sunkist access. Further discussion ensued amongst the Commission, staff and applicant. MOTION failed, 3-3 with Vice Chair Barrett, Commissioner Swope, and Commissioner Basken opposed. MOTION: A motion was made by Commissioner Swope and seconded by Commissioner Basken to recommend approval of the proposed rezoning with all conditions listed in Attachment 1, which includes primary access on Sunkist Road and the additional conditions staff provided. Further discussion ensued amongst the Commission, staff and applicant. MOTION failed, 3-3 with Vice Chair Barrett, Commissioner Drzazgowski, and Commissioner Gribb opposed. MOTION: A motion was made by Vice Chair Barrett to continue this item to a future agenda. The motion did not receive a second and was lost. Further discussion continued amongst the Commission, staff and applicant. MOTION: A motion was made by Commissioner Drzazgowski and seconded by Commissioner Gribb to approve with all conditions as discussed except the Sunkist Road access, as there was a 3-3 split among the Commission concerning the access, and the Town Council to decide the appropriate access point, as a decision- making body. MOTION carried, 5-1 with Vice Chair Barrett opposed. ADJOURNMENT Chair Hurt adjourned the meeting at 9:17 p.m. Prepared by: Jeanna Ancona Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the regular session Planning and Zoning Commission meeting of Oro Valley, Arizona held on the 1st day of May, 2018. I further certify that the meeting was duly called and held and that a quorum was present. Town Council Regular Session 3. Meeting Date:06/06/2018 Requested by: Bayer Vella, Community and Economic Development Submitted By:Bayer Vella, Community and Economic Development Case Number:OV1700002 Information SUBJECT: AMENDING CHAPTER 25, SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT A. RESOLUTION NO. (R)18-26, DECLARING THE PROPOSED ZONING CODE AMENDMENT TO SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT, PROVIDED IN EXHIBIT "A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE CLERK, A PUBLIC RECORD B. PUBLIC HEARING: ORDINANCE NO. (O)18-10, AMENDING SECTION 25.1.B.22 OF THE ORO VALLEY ZONING CODE REGARDING REQUIREMENTS FOR UTILITY POLES, WIRES AND ASSOCIATED EQUIPMENT RECOMMENDATION: A. This is an administrative resolution declaring the proposed code amendment a public record (Attachment 1). Staff recommends approval. B. The Planning & Zoning Commission recommends approval of the proposed Zoning Code amendments (Attachment 2, Exhibit A). EXECUTIVE SUMMARY: The purpose of this code amendment is to modify the Conditional Use Permit requirements related to the maintenance and installation of utility poles, wires and pole mounted equipment. The Zoning Code currently requires a Conditional Use Permit for any relocation, new installation or upgrade to larger utility poles, wires, and pole mounted equipment. The Zoning Code takes a “one size fits all” approach to regulating utility poles and equipment. In other words, virtually all small and large changes require a Conditional Use Permit and public hearings, which challenges staff, Commission and Town Council to determine what constitutes a significant change on a case-by-case basis. Greater consistency can be achieved by pre-determining what constitutes a significant change up front and this proposed amendment achieves this intention. Tucson Electric Power filed an amendment to the Zoning Code to change the thresholds for when a Conditional Use Permit is required for common upgrades, installations, and relocations of utility poles, wires and pole-mounted equipment. The proposed amendment (Attachment 2, Exhibit A) involves changing the Zoning Code so that a Conditional Use Permit is only required for significant changes related to the following: Pole height and diameter, except for support poles1. Number and thickness of wire diameter2. Pole mounted equipment3. Segment replacement length 4. After one Study Session and two public hearings, the Planning & Zoning Commission recommended approval of the amendments on May 1, 2018 (Attachment 3, draft Planning & Zoning Commission minutes). BACKGROUND OR DETAILED INFORMATION: A. BACKGROUND The General Plan has always placed a high priority on preserving the natural environment and scenic views, and the intent of the Conditional Use Permit requirement is to protect these community values. Since the current zoning provisions were adopted 33 years ago (1984), there has been a number of technological advancements in utility pole maintenance and upgrades (e.g., wooden to metal poles, bird protection guards, thicker wires for electricity capacity, etc.). These advancements along with current utility replacement needs have highlighted the necessity for refined zoning provisions. The Zoning Code currently requires a Conditional Use Permit for the relocation, new installation and upgrades to larger utility poles, wires and pole-mounted equipment. The Code provides the following exceptions for replacements meeting the following conditions: The length of the replacement segment is no longer than 600 feet The replacement pole(s) are placed in the same location and do not increase the height and diameter of the pole(s) replaced Ground mounted equipment such as transformers or pull boxes are permitted Utility poles, wires and pole-mounted equipment are routinely relocated, installed, and upgraded by Tucson Electric Power as part of ongoing maintenance or an improvement project. Tucson Electric Power proposes to modify five (5) areas of the Zoning Code. B. DISCUSSION / ANALYSIS The following key changes are proposed: 1. Pole height and diameter, except for support poles The current Zoning Code allows for utility pole(s) to be replaced with a pole(s) of equal height and diameter. According to Tucson Electric Power, this requirement cannot be met because wooden poles are generally replaced with new steel poles, which require increases to height and diameter. The applicant also indicates that additional height and diameter is needed to accommodate national safety standards (line separation etc.) or to accommodate a field condition where additional height is needed to maintain required clearances from roadways, paths or other infrastructure such as street lights. The applicant requests a replacement pole allowance to exceed the height and diameter of an existing pole by no more than 50%, without Conditional Use Permit review, provided that the new pole includes a tapered design. For example, a 50% increase would allow replacement of a 30-foot high, 45-inch diameter pole with a 45-foot high, 65-inch diameter pole as a matter of right. Anything greater would require a Conditional Use Permit. This proposal is supported because metal poles are tapered and the viewshed analysis provided by TEP indicates low impact. 2. Number and thickness of wire diameter The current code requires a Conditional Use Permit for additional and thicker wires. Tucson Electric Power proposes that the following utility upgrades be administratively approved: Changes to wire diameter are not to exceed two (2”) inches in thickness No more than twenty-five (25%) percent increase to the number of wires, not to exceed a total of 10 wires Any changes beyond the allowances above will require a Conditional Use Permit The applicant’s requests are reasonable because increasing the wire diameter (e.g., not to exceed 2”) and/or total number of wires (e.g., no more than 25%) do not have a significant visual impact which would warrant a public review through the Conditional Use Permit process. A Conditional Use Permit would be required for wires greater than 2” in diameter and for any increases exceeding twenty-five (25%) or ten (10) total wires. 3. Size of pole mounted equipment The applicant originally requested that pole-mounted equipment designed for the protection of wildlife (bird guards) and/or service (transformers, capacitors etc.) be permitted without a Conditional Use Permit, provided that the total area of the equipment is equal or less than 480 cubic feet per pole. Due to collaborative work with assigned Planning & Zoning Commission and TEP representatives, the following changes were made: Equipment more than 160 cubic feet per pole along an arterial street will require a Conditional Use Permit. Equipment more than 64 cubic feet per pole along a collector or local street will require a Conditional Use Permit. To view a map delineating Town arterial, collector and local streets, please see Attachment 4. 4. Segment replacement length The current Zoning Code does not require a Conditional Use Permit to replace a segment of utility line less than 600 feet (about 1/8 mile) in length, within a 12-month period of time. To ensure adequate service and maintenance, Tucson Electric Power proposes to increase the 600’ foot length requirement to 5,000 feet. Increasing the allowed line segment replacement length from 600 feet to 5,000 feet would accommodate the typical length of an improvement or ongoing maintenance project while still allowing public review for longer, more visually impactful lengths of utility projects. The 5,000 foot length requirement is less than one mile (or 5,280 feet), which is the typical length from one major intersection to another (e.g., La Cañada Drive to La Cholla Boulevard or Naranja Drive to Lambert Lane, etc.). The aim is to ensure visual continuity of roadway stretches between traffic lights. Traffic lights create a prominent visual landmark or break along a street. As proposed, utility projects that exceed the proposed 5,000 feet segment replacement length are considered a significant change that warrants public review through the Conditional Use Permit process. C. GENERAL PLAN ANALYSIS The proposed amendment was reviewed for conformance with the Vision, Goals and Policies of the Your Voice, Our Future General Plan. The Vision Statement and applicable goals and policies are provided below, followed by a staff response: Vision Statement Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro Valley will keep its friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town’s lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views. Goal K: The proactive conservation, protection and restoration of environmentally sensitive lands, natural resource areas and habitats and lands with high scenic value. Policy SD.6: Protect scenic corridors, public park and trail view sheds, and the distinctive visual character and visual appeal of Oro Valley. Goal T: Sustainable and innovative public services and utilities that serve the current and future needs of the community. In summary, the Vision, Goals and Policies of the General Plan place a high priority on the natural environment and scenic views. The proposed amendment is consistent with the General Plan as it contains sufficient limitations that allow a careful balancing between the maintenance and upgrade of public infrastructure and the protection of the Town’s scenic resources. D. PUBLIC NOTIFICATION Public Notice has been provided as follows: All HOAs in Town were notified of this hearing Public hearing notices were posted: In the Territorial Newspaper At Town Hall On the Town website E. RECOMMENDATION The Planning & Zoning Commission held a Study Session on May 2, 2017, and public hearings on December 5, 2017, and May 1, 2018. At the first public hearing, this item was continued to further study the following: Segment replacement length Size of pole mounted equipment Temporary & emergency allowances Erection of new utility poles where none previously existed Need for visual impact analysis Exemption versus Planning & Zoning Administrator review and approval A revised draft was created with input from an informal Planning & Zoning Commission sub-committee and Tucson Electric Power representatives. The full Planning & Zoning Commission reviewed and recommended approval of the latest version on May 1, 2018 (Attachment 3, draft Planning & Zoning Commission minutes and Attachment 5, Planning & Zoning Commission staff report). It is recommended that the Town Council approve the requested code amendment, based on the following findings: The Planning & Zoning Commission recommends approval. The Town retains the ability to hold public hearings for all significant utility upgrades. The current draft now precisely defines what changes are significant, which better serves Oro Valley’s interest in conserving views and Tucson Electric Power’s request for greater efficiency. In keeping with the Vision, Goals and Policies of the Your Voice Our Future General Plan, this amendment provides a means to conserve views and ensure proper service. FISCAL IMPACT: N/A. SUGGESTED MOTION: Two motions are required for this agenda item. The first one addresses a required administrative action to declare the amendment a public record. The second motion is to approve or deny the proposed code amendment. Item A: I MOVE to (approve/deny) Resolution No. (R)18-26, declaring the proposed amendments to Section 25.1.B.22 of the Oro Valley Zoning Code regarding requirements for utility poles, wires and associated equipment as provided in Attachment 1 and filed with the Town Clerk, a public record. Item B: I MOVE to (approve/deny) Ordinance No. (O)18-10, amending Section 25.1.B.22 of the Oro Valley Zoning Code regarding requirements for utility poles, wires and associated equipment as specified in Attachment 2. Attachments (R)18-26 Public Record (O)18-10 Utility Poles Attachment 3 - Planning & Zoning Commission draft minutes Attachment 4 - Your Voice, Our Future General Plan Circulation Map Planning & Zoning Commission staff report May 1, 2018 RESOLUTION NO. (R)18-26 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT TO BE PLACED WITHIN CHAPTER 25, USE REGULATIONS, SECTIONS 25.1.B.22, OF THE ORO VALLEY ZONING CODE REVISED AND ENTITLED THE “NEW UTILITY POLES AND WIRES”; ATTACHED HERETO AS EXHIBIT “A” AND FILED WITH THE TOWN CLERK BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, that certain document of the Oro Valley Town Code, entitled Chapter 25, Use Regulations, Section 25.1.B.22, entitled “New Utility Poles and Wires”, is attached hereto as Exhibit “A”, three copies of which are on file in the Office of the Town Clerk, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 6 th day ofJune, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: Exhibit A New Utility Poles and Wires TEP Zoning Code Amendment OV1700002 Deletions have been struck Additions shown in CAPS _____________________________________________________________________________ _______ Section 25.1.B 22. New Utility Poles and Wires a. Applicability i.It is unlawful to erect, possess or maintain any utility poles or wires above the surface of the ground except after obtaining a Conditional Use Permit therefore, UNLESS AS OTHERWISE PROVIDED IN SECTION 22.A.II. ii.Exceptions a) Utility poles and wires erected prior to December 31, 1983. b) New utility poles and wires erected for temporary use for periods not in excess of four (4) months for purely temporary purposes such as for providing temporary building construction power or for emergency power or telephone service, or for the furnishing of power to temporary outdoor activities. This four (4)-month period may be extended by the Town Council PLANNING AND ZONING ADMINISTRATOR AND TOWN ENGINEER if good cause is shown. c) Replacements involving less than six hundred (600) feet of continuous poles and wires on any transmission or distribution line in any twelve (12)-month period where the remainder of such transmission or distribution line is not also being replaced within said period; such replacement excluded from being new utility poles under the latter clause must be poles of the same or less size, diameter, height and in the same location as the pole or poles being replaced, and in addition, must be of the same classification as to strength and purpose within the utility industry as pole or poles being replaced. d c) Erection on the ground surface and flush to the ground of transformers, pullboxes, service terminals, pedestal type telephone facilities normally used with and as a part of an underground distribution system. The size, type and design of these are to be approved by the Town Engineer. e d) Erection on the ground surface and flush to the ground of wires in encased concrete or conduit where underground wire installation is not feasible due to special features of the terrain. E) REPLACEMENTS, RELOCATIONS AND NEW INSTALLATIONS INVOLVING ONE OR MORE OF THE FOLLOWING IMPROVEMENTS: i.POLES a) FIFTY (50%) PERCENT OR LESS INCREASE TO A POLE HEIGHT AND/OR DIAMETER, PROVIDED THE NEW POLE HAS A TAPERED DESIGN. b) STRUCTURAL SUPPORT POLE(S) USED FOR A CHANGE IN LINE DIRECTION OR LINE TERMINATION ONLY. ii.WIRES AND POLE MOUNTED EQUIPMENT a) CHANGES TO WIRE DIAMETER NOT TO EXCEED TWO (2”) INCHES IN THICKNESS. b) TWENTY FIVE (25%) PERCENT OR LESS INCREASE TO THE TOTAL NUMBER OF WIRES, NOT TO EXCEED TEN (10) WIRES. c) POLE MOUNTED EQUIPMENT, EXCLUDING WIRES, INSULATORS, AND ATTACHMENT DEVICES, WITH A SIZE OF 160 CUBIC FEET OR LESS ON MAJOR OR MINOR ARTERIAL ROADS AS DEPICTED IN THE YOUR VOICE, OUR FUTURE, GENERAL PLAN CIRCULATION MAP. d) POLE MOUNTED EQUIPMENT EXCLUDING WIRES, INSULATORS, AND ATTACHMENT DEVICES, WITH A SIZE OF 64 CUBIC FEET OR LESS ON MAJOR COLLECTOR, MINOR COLLECTOR OR LOCAL ROADS AS DEPICTED IN THE YOUR VOICE, OUR FUTURE , GENERAL PLAN CIRCULATION MAP. iii.OTHER a) ALL REPLACEMENT PROJECTS INVOLVING 5,000 FEET OR LESS OF CONTINOUS POLES AND WIRES WITHIN A TWELVE (12) MONTH PERIOD. b. Approval Criteria FOR CONDITIONAL USE PERMITS: i.APPLICABLE ADDITIONS, MODIFICATIONS OR NEW UTILITY POLES WHERE NONE PREVIOUSLY EXISTED MAY HAVE A SIGNIFICANT VISUAL IMPACT AND REQUIRE CONSIDERATION BY THE PLANNING AND ZONING COMMISSION AND TOWN COUNCIL AS A CONDITIONAL USE PERMIT. ii.A Conditional Use Permit for the erection of new utility poles and wires will be granted ANY REQUEST SHALL BE REVIEWED in accordance with Section 22.5. iii.In addition, The primary consideration shall be aesthetics with the following factors also considered: a) The location and height of such poles and wires and the relation to the present or potential roads; b) The crossing of such lines over much traveled highways and streets; c) Proximity of such lines to schools, religious institutions and other places where people may congregate; d) Fire or other accidental hazards from the presence of such poles and wires and the effect, if any, of the same upon the effectiveness of fire-fighting equipment; e) The availability of a suitable right-of-way for the installation; f) Future conditions which may be reasonably anticipated in the area in view of a normal course of development; g) The type of terrain; h) The practicality and feasibility of underground installation of such poles and wires with due regard for the comparative costs between underground and over ground installations (provided, however, that a mere showing that an underground installation shall cost more than an over-ground installation shall not, in itself, necessarily require issuance of a permit). THE APPLICANT MUST PROVIDE A VIEWSHED ANALYSIS THAT CONTRASTS EXISTING AND PROPOSED CONDITIONS AND ADDRESS EACH OF THE FACTORS ABOVE. iv.In the event such poles and wires are for the sole purpose of carrying electricity or power or for transmitting of telephone, telegraph, or television communication through or beyond the Town’s boundaries or from one (1) major facility to another, the practicality or feasibility of alternative or other routes shall also be considered. ORDINANCE NO. (O)18-10 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING CHAPTER 25, USE REGULATIONS, SECTION 25.1.B.22, NEW UTILITY POLES AND WIRES OF THE ORO VALLEY ZONING CODE REVISED; REPEALING ALL RESOLUTIONS, ORDINANCES AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER WHEREAS, on March 13, 1981, the Mayor and Council approved Ordinance (O)81-58, adopting that certain document entitled “Oro Valley Zoning Code Revised (OVZCR); and WHEREAS, it has become necessary to amend Chapter 25, Use Regulations, Section 25.1.B.22, New Utility Poles and Wires, to modify the Conditional Use Permit requirements related to maintenance and installation of utility poles, wires and pole mounted equipment; and WHEREAS, the Planning and Zoning Commission held a meeting on December 5, 2017 and voted to recommend approval of amending Chapter 25, Use Regulations, Section 25.1.B.22, New Utility Poles and Wires; and WHEREAS,the Mayor and Council have considered the proposed amendments and the Planning and Zoning Commission’s recommendation and finds that they are consistent with the Town's General Plan and other Town ordinances and are in the best interest of the Town. NOW, THEREFORE, BE IT ORDAINED by the Mayor and Town Council of the Town of Oro Valley that: SECTION 1.That certain document entitled Chapter 25, Use Regulations, Section 25.1.B.22, New Utility Poles and Wires of the Oro Valley Zoning Code Revised, attached hereto as Exhibit “A” and incorporated herein by this reference, and declared a public record on June 6, 2018 is hereby adopted SECTION 2.All Oro Valley ordinances, resolutions or motions and parts of ordinances, resolutions or motions of the Council in conflict with the provision of this Ordinance are hereby repealed. SECTION 3.If any section, subsection, sentence, clause, phrase, or portion of the resolution or any part of the General Plan Amendment adopted herein 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 the Mayor and Council of the Town of Oro Valley, Arizona, this 6 th day of June, 2018. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” Exhibit A New Utility Poles and Wires TEP Zoning Code Amendment OV1700002 Deletions have been struck Additions shown in CAPS ____________________________________________________________________________________ Section 25.1.B 22. New Utility Poles and Wires a. Applicability i.It is unlawful to erect, possess or maintain any utility poles or wires above the surface of the ground except after obtaining a Conditional Use Permit therefore, UNLESS AS OTHERWISE PROVIDED IN SECTION 22.A.II. ii.Exceptions a) Utility poles and wires erected prior to December 31, 1983. b) New utility poles and wires erected for temporary use for periods not in excess of four (4) months for purely temporary purposes such as for providing temporary building construction power or for emergency power or telephone service, or for the furnishing of power to temporary outdoor activities. This four (4)-month period may be extended by the Town Council PLANNING AND ZONING ADMINISTRATOR AND TOWN ENGINEER if good cause is shown. c) Replacements involving less than six hundred (600) feet of continuous poles and wires on any transmission or distribution line in any twelve (12)-month period where the remainder of such transmission or distribution line is not also being replaced within said period; such replacement excluded from being new utility poles under the latter clause must be poles of the same or less size, diameter, height and in the same location as the pole or poles being replaced, and in addition, must be of the same classification as to strength and purpose within the utility industry as pole or poles being replaced. d c) Erection on the ground surface and flush to the ground of transformers, pullboxes, service terminals, pedestal type telephone facilities normally used with and as a part of an underground distribution system. The size, type and design of these are to be approved by the Town Engineer. e d) Erection on the ground surface and flush to the ground of wires in encased concrete or conduit where underground wire installation is not feasible due to special features of the terrain. E) REPLACEMENTS, RELOCATIONS AND NEW INSTALLATIONS INVOLVING ONE OR MORE OF THE FOLLOWING IMPROVEMENTS: i.POLES a) FIFTY (50%) PERCENT OR LESS INCREASE TO A POLE HEIGHT AND/OR DIAMETER, PROVIDED THE NEW POLE HAS A TAPERED DESIGN. b) STRUCTURAL SUPPORT POLE(S) USED FOR A CHANGE IN LINE DIRECTION OR LINE TERMINATION ONLY. ii.WIRES AND POLE MOUNTED EQUIPMENT a) CHANGES TO WIRE DIAMETER NOT TO EXCEED TWO (2”) INCHES IN THICKNESS. b) TWENTY FIVE (25%) PERCENT OR LESS INCREASE TO THE TOTAL NUMBER OF WIRES, NOT TO EXCEED TEN (10) WIRES. c) POLE MOUNTED EQUIPMENT, EXCLUDING WIRES, INSULATORS, AND ATTACHMENT DEVICES, WITH A SIZE OF 160 CUBIC FEET OR LESS ON MAJOR OR MINOR ARTERIAL ROADS AS DEPICTED IN THE YOUR VOICE, OUR FUTURE , GENERAL PLAN CIRCULATION MAP. d) POLE MOUNTED EQUIPMENT EXCLUDING WIRES, INSULATORS, AND ATTACHMENT DEVICES, WITH A SIZE OF 64 CUBIC FEET OR LESS ON MAJOR COLLECTOR, MINOR COLLECTOR OR LOCAL ROADS AS DEPICTED IN THE YOUR VOICE, OUR FUTURE, GENERAL PLAN CIRCULATION MAP. iii.OTHER a) ALL REPLACEMENT PROJECTS INVOLVING 5,000 FEET OR LESS OF CONTINOUS POLES AND WIRES WITHIN A TWELVE (12) MONTH PERIOD. b. Approval Criteria FOR CONDITIONAL USE PERMITS: i.APPLICABLE ADDITIONS, MODIFICATIONS OR NEW UTILITY POLES WHERE NONE PREVIOUSLY EXISTED MAY HAVE A SIGNIFICANT VISUAL IMPACT AND REQUIRE CONSIDERATION BY THE PLANNING AND ZONING COMMISSION AND TOWN COUNCIL AS A CONDITIONAL USE PERMIT. ii.A Conditional Use Permit for the erection of new utility poles and wires will be granted ANY REQUEST SHALL BE REVIEWED in accordance with Section 22.5. iii.In addition, The primary consideration shall be aesthetics with the following factors also considered: a) The location and height of such poles and wires and the relation to the present or potential roads; b) The crossing of such lines over much traveled highways and streets; c) Proximity of such lines to schools, religious institutions and other places where people may congregate; d) Fire or other accidental hazards from the presence of such poles and wires and the effect, if any, of the same upon the effectiveness of fire-fighting equipment; e) The availability of a suitable right-of-way for the installation; f) Future conditions which may be reasonably anticipated in the area in view of a normal course of development; g) The type of terrain; h) The practicality and feasibility of underground installation of such poles and wires with due regard for the comparative costs between underground and over ground installations (provided, however, that a mere showing that an underground installation shall cost more than an over-ground installation shall not, in itself, necessarily require issuance of a permit). THE APPLICANT MUST PROVIDE A VIEWSHED ANALYSIS THAT CONTRASTS EXISTING AND PROPOSED CONDITIONS AND ADDRESS EACH OF THE FACTORS ABOVE. iv.In the event such poles and wires are for the sole purpose of carrying electricity or power or for transmitting of telephone, telegraph, or television communication through or beyond the Town’s boundaries or from one (1) major facility to another, the practicality or feasibility of alternative or other routes shall also be considered. May 1, 2018 Planning and Zoning Commission 1 MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION May 1, 2018 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Chair Hurt called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Charlie Hurt, Chair Melanie Barrett, Vice Chair Tom Drzazgowski, Commissioner Thomas Gribb, Commissioner Bob Swope, Commissioner Nathan Basken, Commissioner EXCUSED: Don Cox, Commissioner STAFF PRESENT: Bayer Vella, Interim Community and Economic Development Director Paul Keesler, Town Engineer/Public Works Director David Laws, Permitting Manager Council Liaison Bill Rodman Councilmember Joe Hornat Vice Mayor Lou Waters PLEDGE OF ALLEGIANCE Chair Hurt led the Commission and audience in the Pledge of Allegiance. CALL TO AUDIENCE There were no speaker requests. COUNCIL LIAISON COMMENTS Council Liaison Bill Rodman reported on the recent Town Council approvals: the Final Plat for Phase I for the Villages of Silverhawke and the Final Plat for Viewpointe II at Vistoso Trails. At the next council meeting on May 2, depending on Commission's vote May 1, 2018 Planning and Zoning Commission 1 tonight, Council will review the surgical office Conditional Use Permit case. At the upcoming May 16 meeting, the Capella rezoning and the electronic message board cases will be reviewed. REGULAR SESSION AGENDA 4. PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A ZONING CODE AMENDMENT RELATED TO THE CONDITIONAL USE PERMIT REQUIREMENTS FOR UTILITY POLES, WIRES AND POLE MOUNTED EQUIPMENT, OV1700002 Interim Community and Economic Development Director Bayer Vella provided a presentation that included the following: - Purpose - Five elements - Your Voice, Our Future circulation map - Temporary and Emergency Services - Review Tools - Summary and Recommendation Applicant Todd Stocksdale with Tucson Electric Power, provided a presentation that included the following: - Application Purpose - Considerations - Emergency Clause - Pole Height - Distribution: La Cholla Blvd >50% height change - Pole Diameter and Self-supporting Poles - Diameter Exception - Wire Diameter - Pole-mounted equipment - Major and Minor Collector and Local Roads <64 cubic feet - Major and Minor Collector and Local Roads <160 cubic feet - Conditional Use Permit required - Pole Segment Replacement Length - Conclusion Discussion ensued amongst the Commission, applicant and staff. Chair Hurt open the public hearing. There were no speaker requests. May 1, 2018 Planning and Zoning Commission 1 Chair Hurt closed the public hearing. MOTION: A motion was made by Commissioner Drzazgowski and seconded by Commissioner Gribb to recommend approval of the Zoning Code Amendment in Attachment 1, based on the finding that the request conforms with the General Plan. MOTION carried, 4-2 with Vice Chair Barrett and Commissioner Swope opposed. ADJOURNMENT Chair Hurt adjourned the meeting at 9:17 p.m. Prepared by: Jeanna Ancona Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the regular session Planning and Zoning Commission meeting of Oro Valley, Arizona held on the 1st day of May, 2018. I further certify that the meeting was duly called and held and that a quorum was present. CAMPBELL AVORACLE RDINA RDTHORNYDALE RDLA CHOLLA BLMOORE RD SHANNON RDSKYLINE DR1ST AVOVERTON R D SWAN RDT A N G E R IN E R D SILV E R B E L L R D CORTARO FARMS RD RIVER RD WILDS RD KINGAIR DRMONA LISA RDMAGEE RD LAGODELOROPWS U N RI SEDRRANCHOVI ST OS OBLNORTHERN AVSU NSET RD CHRISTIEDRORANGE GROVE R D GOLDER RAN CH DR CAMINODEMANANACAMINO DEL NORTE LA CANADA DRTWIN LAKES DRLA M B E R T LNEL CAMINO DE MANANA HARDY RD CALLE BUENA VISTA NARANJA DRCAMINO DE OESTE INA RD LINDA VISTA BL MAGEE RD LA CANADA DRRANCHOVIST O S O B LCAMINO DE OESTE LAM BERT LN H A R D Y R D LA CHOLLA BLTANGERI NE RD LINDA VISTA BL CAMINO DE OESTE MAGEE RD 1ST AVNARANJA DR ORANGE GRO VE RD INA RD MOORE RD PALISADES RDINNOVAT ION PARKORACLE RDED WIN RD Circulation Map Roads Functional Class ification Major Arterial Minor Arterial Major Collector Minor Collector Local St reet Oro Valley Town Limit General Plan Planning Area Source: This map was made with data from th e Town of Or o Valley, Pima County and the Arizona Department o f Transportation This map is for illustration purp oses o nly. Every effort has been made for ac curacy, howev er the Town of Oro Valley d oes no t guarantee the information co ntained on this map is accurate. F or more information, ple ase c ontact Town of Oro Valley Pla nning an d Z oning staff. 0 1 20.5 Miles May 2016Z:\Projects\Mappin gProducts \Plan ning\GeneralPlan\gp 2015 \p rojec ts\Circulation_GP1 5_1 1x17 .mxd Planning & Zoning Commission AGENDA ITEM: 4. Meeting Date:05/01/2018 Requested by: Bayer Vella, Community and Economic Development Submitted By:Jeanna Ancona, Community and Economic Development Case Number:OV1700002 SUBJECT: PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING A ZONING CODE AMENDMENT RELATED TO THE CONDITIONAL USE PERMIT REQUIREMENTS FOR UTILITY POLES, WIRES AND POLE MOUNTED EQUIPMENT, OV1700002 RECOMMENDATION: Staff recommends approval of the proposed changes in Attachment 1. EXECUTIVE SUMMARY: The purpose of this code amendment is to modify the Conditional Use Permit requirements related to the maintenance and installation of utility poles, wires and pole mounted equipment. The Zoning Code currently requires a Conditional Use Permit for the 1) relocation 2) new installation and 3) upgrade to larger utility poles, wires and pole mounted equipment. The Zoning Code takes a “one size fits all” approach to regulating utility poles and equipment. In other words, virtually all small and large changes require a Conditional Use Permit and public hearings. This challenges staff, Commission and Town Council to determine what constitutes a significant change on a case-by-case basis. Greater consistency can be achieved by pre-determining what constitutes a significant change up front and this proposed amendment achieves this aim. Tucson Electric Power filed an amendment to the Zoning Code to change the thresholds for when a Conditional Use Permit is required for common upgrades, installations, and relocations of utility poles, wires and pole mounted equipment. The proposed amendment (Attachment 1) involves changing the Zoning Code so that a Conditional Use Permit is not required or the threshold for triggering the need for one is higher for improvements related to the following: Pole height and diameter1. Support poles used for a change in direction or line termination2. Number and thickness of wire diameter3. Pole mounted equipment4. Segment replacement length 5. The Planning & Zoning Commission held a study session on May 2, 2017 and a public hearing on December 5, 2017. At the first public hearing, this item was continued (See Attachment 2 for meeting minutes). Key issues expressed at this meeting include: 1) Segment replacement length 2) Size of pole mounted equipment 3) Temporary & emergency allowances 4) Erection of new utility poles where none previously existed 5) Need for visual impact analysis 6) Exemption versus Planning & Zoning Administrator review and approval. The Commission directed staff to work with the applicant and two Commissioners, as appointed by the Chair, to address all issues and concerns. This has been accomplished and staff recommends approval of the revised amendment. BACKGROUND OR DETAILED INFORMATION: A. BACKGROUND Please see the December 5, 2017 Planning & Zoning Commission staff report (Attachment 3). B. DISCUSSION / ANALYSIS The following issues were raised at the December Commission meeting and addressed by the designated review team: 1. Segment replacement length The current Zoning Code does not require a Conditional Use Permit for the replacement of a segment of utility line less than 600 feet (about 1/8 mile) in length, within a 12-month period of time. To ensure adequate service and maintenance, Tucson Electric Power proposes to increase the 600’ foot length requirement to 5,000 feet. Increasing the allowed line segment replacement length from 600 feet to 5,000 feet would accommodate the typical length of an improvement or ongoing maintenance project while still allowing public review for longer, more visually impactful lengths of utility projects. The 5,000 feet length requirement is less than one mile (or 5,280 feet), which is the typical length from one major intersection to another (e.g., La Cañada Drive to La Cholla Boulevard or Naranja Drive to Lambert Lane, etc.). The aim is to ensure visual continuity of roadway stretches between traffic lights. Traffic lights create a prominent visual landmark or break along a street. As proposed, utility projects that exceed the proposed 5,000 feet segment replacement length are considered a significant change that warrants public review through the Conditional Use Permit process. 2. Size of Pole mounted equipment The applicant originally requested that pole mounted equipment designed for the protection of wildlife (bird guards) and/or service (transformers, capacitors etc.) be permitted without a Conditional Use Permit, provided that the total area of the equipment is equal or less than 480 cubic feet per pole. Pole mounted equipment greater than 480 cubic feet would require a Conditional Use Permit. After working with the designated Commissioners and TEP representatives, the following changes were made: Equipment more than 180 cubic feet per pole along an arterial street will require a Conditional Use Permit. If less, then it is exempt from the public hearing process. Equipment more than 64 cubic feet per pole along a collector or local street will require a Conditional Use Permit. If less, then it is exempt from the public hearing process. To view a map delineating Town arterial, collector and local streets, please see Attachment 4. 3. Temporary and emergency situations The Zoning Code currently allows new temporary or emergency utility poles and wires to be erected for a period of four (4) months without a Conditional Use Permit, provided that the intent is to provide temporary services. The provision reads: New utility poles and wires erected for temporary use for periods not in excess of four (4) months for purely temporary purposes such as for providing temporary building construction power or for emergency power or telephone service, or for the furnishing of power to temporary outdoor activities. This four (4) month period may be extended by the Town Council if good cause is shown. To efficiently serve customers in times of a special circumstance or emergency situation, Tucson Electric Power proposes that the four-month extension for temporary electrical service be approved by the Planning and Zoning Administrator and Town Engineer, and not the Town Council. 4. Erection of new utility poles where none previously existed The current code requires a Conditional Use Permit for all new utility poles where none existed prior. The updated draft continues this theme, except for limited additions for structural support. Language has been added to clarify this requirement. 5. Need for visual impact analysis A visual analysis is required for all related conditional use permit applications. Additional language has been added to the most recent draft. 6. Exemption versus Planning & Zoning Administrator review and approval Concern was expressed at the last Commission hearing that the list of “exemptions” would not enable Town staff review of improvements. Because most utility poles are located in Town Right-of-Way (excluding Oracle Road and segments of Tangerine Road), a Town Public Right-of-Way Permit is required for any work. This enables staff the ability to check for zoning compliance prior to construction. C. GENERAL PLAN ANALYSIS The proposed amendment was reviewed for conformance with the Vision, Goals and Policies of the Your Voice, Our Future General Plan. The Vision Statement and applicable goals and policies are provided below, followed by a staff response: Vision Statement Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro Valley will keep its friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town’s lifestyle continues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environment and scenic views. Goal K: The proactive conservation, protection and restoration of environmentally sensitive lands, natural resource areas and habitats and lands with high scenic value. Policy SD.6 Protect scenic corridors, public park and trail view sheds, and the distinctive visual character and visual appeal of Oro Valley. Goal T: Sustainable and innovative public services and utilities that serve the current and future needs of the community. Staff Comment: The Vision, Goals and Policies of the General Plan place a high priority on the natural environment and scenic views. The proposed amendment is consistent with the General Plan as it contains sufficient limitations that allow a careful balancing between the maintenance and upgrade of public infrastructure and the protection of the Town’s scenic resources. D. PUBLIC NOTIFICATION Public Notice has been provided as follows: All HOAs in Town were notified of this hearing Public hearing notices were posted: In the Territorial Newspaper At Town Hall On the Town website E. RECOMMENDATION It is recommended that the Planning and Zoning Commission approve the requested code amendment, based on the following findings: The Town retains the ability to hold public hearings for all significant utility upgrades. The current draft now precisely defines what changes are significant. This better serves Oro Valley’s interest in conserving views and Tucson Electric Power’s request for greater efficiency. In keeping with the Vision, Goals and Policies of the Your Voice Our Future General Plan, this amendment provides a means to conserve views and ensure proper service. FISCAL IMPACT: N/A. SUGGESTED MOTION: The Planning and Zoning Commission may wish to consider one of the following motions: I MOVE to recommend approval of the Zoning Code Amendment in Attachment 1, based on the finding that the request conforms with the General Plan. OR I MOVE to recommend denial of the Zoning Code Amendment in Attachment 1, based on the finding that __________________________________. Attachments Attachment 1 - Proposed Code Amendment Attachment 2 - 12-5-17 Approved Minutes Attachment 3 - 12-5-17 PZC Staff Report Attachment 4 - Your Voice, Our Future General Plan Circulation Map Town Council Regular Session 4. Meeting Date:06/06/2018 Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: PRESENTATION OF FIVE-YEAR FINANCIAL FORECAST THROUGH FY 2022/23 RECOMMENDATION: This item is for presentation and discussion. EXECUTIVE SUMMARY: The Town's adopted financial policies provide "as a part of the annual Town budget preparation cycle, the Finance Department shall prepare a minimum five-year financial forecast of projected revenues and expenditures to measure the financial sustainability of the Town's operations and service levels." As such, staff will present the five-year financial forecast through FY 2022/23 for the General Fund and Highway Fund. A five-year forecast has not been prepared for the Community Center Fund, due to improvements planned for the facility over the next two years. The forecast assumptions were compiled by referencing several sources of data, including the University of Arizona, Joint Legislative Budget Committee (JLBC), State Finance Advisory Committee, Arizona Department of Revenue and the Arizona Department of Transportation. Staff also incorporated Town historical trend data and professional judgment into formulation of this forecast. BACKGROUND OR DETAILED INFORMATION: On May 22, 2018, the Pima County board of supervisors approved a FY 18/19 tentative budget that includes the 25-cent property tax dedicated to repairing local roads in both incorporated and unincorporated areas. This property tax funds roughly $600,000 annually towards the Town's pavement preservation program, which in turn allows for a reduction in the required General Fund transfer to subsidize Highway Fund operations. Pima County's final budget adoption is scheduled for June 19, 2018. Due to the fact that this tax has to be approved by the Pima County board of supervisors each year, we did NOT include this funding or the associated savings to the Town in our forecast beyond FY 18/19. Attached to this communication are the following fund forecasts: General Fund Five-year forecast of revenues and expenditures by category without the Pima County property tax for roads Forecast assumptions without the Pima County property tax for roads Graph of forecasted revenues, expenditures and fund balance without the Pima County property tax for roads The General Fund remains relatively stable over the five-year horizon, with sustained building activity, moderate revenue growth and an emphasis on efficient operations and fiscally conservative spending. The slowing revenue growth in the last two years of the forecast reflects an expected decline in building activity due to the Town approaching build-out within its incorporated boundaries. The forecast assumes residential construction will peak in FY 20/21 with 415 single family residential (SFR) permits issued that year, declining to 227 in FY 22/23. In regards to commercial construction, the forecast assumes activity will be limited to smaller infill projects and potential development on remaining available parcels within Town. Construction sales tax collections and building permit revenues are expected to decline considerably into FY 22/23. This could impact available funding for one-time expenditures, particularly capital improvements and the General Fund transfer to subsidize Highway Fund operations. Declining revenues will also place increased pressure on reducing our operating costs, as the forecast for FY 22/23 shows the General Fund reserve balance falling below the Town's required 25% minimum. While acknowledging that this is a conservative forecast and reflects four to five years into the future, we still need to ensure we plan accordingly in order to manage this potential decline. Recurring revenues are expected to grow 3%-5% per year; however, recurring expenditures are expected to slightly outpace available revenues. Recurring expenditures in the forecast reflect the continued commitment to providing fair employee compensation, managing the Town's pension and health insurance costs, planning for increased inflationary pressures in operations and maintenance (O&M) budgets and allocating resources to asset replacement (computers and vehicles). The fund balance in the General Fund is maintained at healthy levels over the next four years at $9.6 million to $12.0 million, which is at or above the Town's adopted policy requirement of 25% of adopted expenditures each year. Highway Fund Five-year forecast of revenues and expenditures by category without the Pima County property tax for roads Forecast assumptions without the Pima County property tax for roads Graph of forecasted revenues, expenditures and fund balance without the Pima County property tax for roads Highway Fund revenues are comprised primarily of State Shared highway user (gas tax) revenues and subsidy funds transferred from the General Fund. The State Shared highway user revenue projections are provided by the Arizona Department of Transportation. The funds transferred from the General Fund will maintain a positive fund balance in the Highway Fund each year. Should Pima County continue to approve the property tax for roads, we could expect an offsetting reduction in the subsidy transfer from the General Fund. Highway Fund expenditures reflect similar assumptions as those included in the General Fund forecast for personnel and operations and maintenance (O&M) costs. Funding for the pavement preservation program is included in the forecast at approximately $1.4 million each year; again, this is without the County property tax for roads. As with the General Fund, capacity for capital needs in the Highway Fund are expected to fluctuate, based on available funding sources. The fund balance in the Highway Fund is projected to decrease to approximately $153,000 by FY 22/23. FISCAL IMPACT: N/A SUGGESTED MOTION: None - this item is for presentation and discussion. Attachments General Fund Forecast General Fund Assumptions General Fund Chart Highway Fund Forecast Highway Fund Assumptions Highway Fund Chart TOWN OF ORO VALLEYFive-Year ForecastWITHOUT COUNTY PROPERTY TAXFY 2019/20 FY 2022/23PROJECTEDPROJECTEDBeginning Fund Balance 11,959,316$ 11,512,329$ 10,676,554$ 9,546,345$ REVENUESLocal Sales Taxes 18,266,587 19,437,418 19,541,498 19,677,066 20,000,810 19,871,421 Licenses & Permits 2,455,173 2,136,096 2,371,839 2,558,006 2,299,416 1,894,241 State & Fed Grants 541,036 714,962 398,073 402,054 406,075 410,135 State Shared Revenues 11,540,562 11,708,575 12,166,437 12,516,800 12,900,505 13,462,525 Other Intergovernmental 1,647,331 1,805,900 1,855,188 1,905,821 1,967,836 2,021,271 Charges for Services 2,141,711 2,408,862 2,529,305 2,630,477 2,784,392 2,890,673 Fines 120,000 120,000 135,000 139,050 143,222 147,518 Interest Income (11,722) 150,000 190,895 203,866 212,420 235,917 Miscellaneous 295,714 306,750 335,000 354,150 363,575 373,282 Other Financing Sources 305,000 120,000 120,000 120,000 120,000 120,000 TOTAL REVENUES 37,301,392$ 38,908,563$ 39,643,236$ 40,507,291$ 41,198,250$ 41,426,984$ 13,403,214$ 15,035,308$ GENERAL FUNDFY 2017/18 FY 2018/19 FY 2020/21 FY 2021/22ESTIMATEDTENTATIVEPROJECTEDPROJECTED 5/25/2018 TOWN OF ORO VALLEYFive-Year ForecastWITHOUT COUNTY PROPERTY TAXFY 2019/20 FY 2022/23PROJECTEDPROJECTEDGENERAL FUNDFY 2017/18 FY 2018/19 FY 2020/21 FY 2021/22ESTIMATEDTENTATIVEPROJECTEDPROJECTEDEXPENDITURESPersonnel 25,117,611 27,036,350 27,719,129 28,502,374 29,154,211 29,848,755 Operations & Maintenance 7,995,256 9,493,316 8,222,433 8,348,872 8,517,341 8,596,858 Capital Outlay 440,492 754,375 325,878 331,062 336,343 342,921 Use of Contingency 75,000 - - - - - Transfers Out 2,524,668 4,700,514 3,342,783 3,295,758 3,095,562 2,577,286 TOTAL EXPENDITURES 36,153,027$ 41,984,555$ 39,610,223$ 40,478,066$ 41,103,458$ 41,365,819$ Surplus/(Deficit) 1,148,365$ (3,075,992)$ 33,013$ 29,225$ 94,792$ 61,165$ Ending Fund Balance 14,551,579$ 11,959,316$ 11,992,329$ 11,541,554$ 10,771,345$ 9,607,510$ Reserve 40.2% 28.5% 30.3% 28.5% 26.2% 23.2%as % of Expenditures 5/25/2018 WITHOUT COUNTY PROPERTY TAX GENERAL FUND FORECAST REVENUE ASSUMPTIONS Revenue Category Assumptions Local Sales Taxes No annexations assumed Risk of mild recession in FY 19/20 and into FY 20/21 impacts growth in local sales tax and state shared revenues Slowing revenues in outer years of the forecast are attributable to anticipated build-out within the Town boundaries -All categories 2-6% growth per year in retail tax collections except construction 3-6% growth per year in restaurant/bar tax collections 2-5% growth per year in utility tax collections -Construction Revenues range from $2.8M to $4.7M per year depending on single family residential (SFR) and commercial development forecast Forecast beyond FY 19/20 assumes conservative levels of one-time commercial development Overall collections begin to decline in FY 21/22 as buildable space within the Town decreases Assumes no further legislative changes to construction sales tax reporting Licenses & Permits Slowing revenues in outer years of the forecast are attributable to anticipated build-out within the Town boundaries Residential Building Permits - SFR Forecast: FY 18/19 - 306 FY 19/20 - 387 FY 20/21 - 415 FY 21/22 - 334 FY 22/23 - 227 SFR revenue/permit of $3,500-$4,000 - average over last 4 years Miscellaneous residential permit revenues of $175K-$200K - average over last 4 years Commercial Building Permits - Revenues stable over last 4 years, averaging $380K/yr Forecast beyond FY 18/19 assumes conservative levels of one-time commercial development permitting activity Grant Revenues Two task force officers return to Patrol; minimal growth thereafter State Shared Revenues Projections based on Joint Legislative Budget Committee quarterly report (April 2018) Growth projections range from 1-4% Charges for Services Growth of 4-5% per year, with continued emphasis on recreation programming and facilities, sports tourism and special events Interest Income 1-3% earnings projected on fund balance each year, per the Town's asset management firm Fines Forecast based on historical collections Other Intergovernmental RTA reimbursement for Transit based on historical growth and collections Amphi School District SRO revenues and Pima County reimbursement of Library building & maintenance costs both held flat Animal control revenues reflect slight growth tied to historic actuals Miscellaneous Growth tied to historical growth and collections Other Financing Sources Fund transfers: $120K annual loan repayment from the Community Center Fund 5/30/2018 WITHOUT COUNTY PROPERTY TAX GENERAL FUND FORECAST EXPENDITURE ASSUMPTIONS Expenditure Category Assumptions Salaries and Benefits Step increases and 3% merits; 5% health insurance premium increases; pension rates are per actuarial forecasts Forecast includes roughly two FTE staffing increases per year in FY 19/20 and FY 20/21; no increases beyond FY 20/21 Operations & Maintenance Downward pressure on operating costs throughout forecast period with low to moderate inflation Oro Valley Marketplace tax rebate ends in spring 2019 Vehicle replacements funded from built-up vehicle reserves in the Capital Fund Continued set-aside in the Capital Fund reserve for future replacements CIP Funding Shown as transfers out to Capital Fund Debt Service Transfers Ongoing (Series 2012, 2015, 2017 and Clean Renewable Energy Bonds) Debt service for Community Center bond improvements begins FY 19/20 with gradual shift of these costs to the Community Center Fund Police impact fees cover debt service on evidence facility and substation bond improvements until FY 21/22 Transfer to HW Fund Ranges from $550K to $1.2 million 5/30/2018 $‐ $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000FY 17/18EstimatedFY 18/19TentativeFY 19/20ProjectedFY 20/21ProjectedFY 21/22ProjectedFY 22/23ProjectedGeneral FundRevenues, Expenditures and Fund BalanceWITHOUT COUNTY PROPERTY TAX REVENUESEXPENDITURESFUND BALANCE TOWN OF ORO VALLEYFive-Year ForecastWITHOUT COUNTY PROPERTY TAXFY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23ESTIMATEDTENTATIVEPROJECTEDPROJECTEDPROJECTEDPROJECTEDBeginning Fund Balance 1,350,903$ 804,536$ 286,859$ 235,790$ 215,282$ 188,094$ REVENUESState Grants 114,012 165,000 165,000 - - - Highway User Tax 3,363,581 3,291,659 3,410,159 3,526,104 3,645,992 3,766,309 Licenses & Permits 44,948 48,700 57,256 58,401 59,569 60,760 Interest Income 26,524 50,000 63,632 67,955 70,807 73,639 Miscellaneous 4,103 3,000 5,000 5,000 5,000 5,000 Transfers from General Fund - 550,000 1,150,000 1,200,000 1,050,000 1,050,000 TOTAL REVENUES 3,553,168$ 4,108,359$ 4,851,046$ 4,857,460$ 4,831,367$ 4,955,708$ EXPENDITURESPersonnel 2,078,679 2,377,686 2,434,208 2,258,503 2,317,135 2,377,288 O&M 1,004,378 752,850 767,907 783,265 798,930 814,909 Capital Outlay84,826 695,500 300,000 425,000 320,000 365,000 Pavement Preservation 931,652 800,000 1,400,000 1,411,200 1,422,490 1,433,870 TOTAL EXPENDITURES 4,099,535$ 4,626,036$ 4,902,115$ 4,877,968$ 4,858,555$ 4,991,067$ Surplus/(Deficit) (546,367)$ (517,677)$ (51,069)$ (20,508)$ (27,188)$ (35,359)$ Ending Fund Balance 804,536$ 286,859$ 235,790$ 215,282$ 188,094$ 152,735$ HIGHWAY FUND5/30/2018 WITHOUT COUNTY PROPERTY TAX HIGHWAY FUND ASSUMPTIONS REVENUES Category Assumptions State Grants Reimbursements from Pima Association of Governments and Regional Transportation Authority for contract administration of La Cholla roadway widening project Revenue corresponds to forecasted project schedule and is subject to fluctuation Highway User Tax Projections per Arizona Department of Transportation Base HURF growth ranges from 3.3% to 3.6% per year Forecast assumes continued HURF sweeps for Department of Public Safety funding Licenses & Permits Road permits roughly flat based on historicals Interest Income Forecast per the Town's asset management firm Miscellaneous $5K projected miscellaneous revenues based on current trends Transfer from General Fund Required to subsidize Highway Fund operations, ranges from $550K to $1.2 million each year EXPENDITURES Category Assumptions Salaries and Benefits 3% merit increases, 5% health insurance premium increases, pension rates are per actuarial forecast FY 18/19 and FY 19/20 include temporary contract administration personnel associated with La Cholla roadway project Operations & Maintenance 2% inflation CIP Funding Capacity will be limited to available funding and can be expected to fluctuate Pavement Preservation Funding maintains current OCI rating of 77 5/25/2018 $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000FY 17/18EstimatedFY 18/19TentativeFY 19/20ProjectedFY 20/21ProjectedFY 21/22ProjectedFY 22/23ProjectedHighway FundRevenues, Expenditures and Fund BalanceWITHOUT COUNTY PROPERTY TAXREVENUESEXPENDITURESFUND BALANCE Town Council Regular Session 5. Meeting Date:06/06/2018 Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: PUBLIC HEARING: RESOLUTION NO. (R)18-27, APPROVING THE ADOPTION OF THE FINAL BUDGET OF THE TOWN OF ORO VALLEY FOR FISCAL YEAR 2018/19, INCLUDING APPROVAL OF THE 10-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) FROM FY 2018/19 THROUGH FY 2027/28 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: On May 16, 2018, the Town Council adopted the tentative budget and set the local expenditure limitation for Fiscal Year 2018/19 in the amount of $142,906,231. Tonight is the second public hearing scheduled for the adoption of the final budget, including adoption of the 10-year Capital Improvement Program (CIP) for FY 2018/19 through FY 2027/28. No other changes have been proposed to the tentative budget amounts; however, Town Council may authorize additional changes to the the budget amounts this evening so long as those changes do not increase the maximum expenditure cap approved on the 16th. BACKGROUND OR DETAILED INFORMATION: The attached Auditor General budget forms summarize the revenues, expenditures and inter-fund transfers included in the FY 2018/19 budget and were published in the Daily Territorial newspaper as required by state law. Also attached to this communication is the 10-Year CIP for FY 2018/19 through FY 2027/28. The first year CIP costs of $33.2 million have been included in the Final Budget document. Several revisions have been made to the 10-Year CIP following delivery of the Recommended Budget document. All revisions have been highlighted on the attached draft of the CIP and are as follows. For FY 18/19, capacity of $2,000,000 has been added to the police evidence facility and southern substation building to reflect the bond-funded portion of the project. Future-year CIP revisions are as follows: Steam Pump Ranch improvements in FY 22/23 were shifted to a future year, based on projected available funding. Municipal complex renovations in FY 22/23 were shifted out one year and spread between two fiscal years, based on projected available funding. The final circuit for the Sun City (Rancho Vistoso Boulevard) street lights was moved from the Highway Fund to the Capital Fund. Capacity to begin project investment in Main Streets was added to fiscal years 19/20 through 22/23. Per Council request, capacity for a playground at Naranja Park was shifted from FY 22/23 to FY 19/20. It is important to note that the first year of the CIP, FY 2018/19, is included in the adopted budget. The It is important to note that the first year of the CIP, FY 2018/19, is included in the adopted budget. The future years in the CIP are a forecast based on current assumptions of funding availability and Town needs and are subject to change and updating during future budget processes. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve/deny) Resolution No. (R)18-27, approving the adoption of the final budget of the Town of Oro Valley for the fiscal year 2018/19 and further MOVE to approve the Town of Oro Valley 10-year Capital Improvement Program for FY 2018/19 through FY 2027/28. Attachments (R)18-27 Adopting Final Budget for FY 18/19 Auditor General Budget Schedules FY 18/19 10-Year Capital Improvement Program (CIP) RESOLUTION NO. (R)18-27 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING THE ADOPTION OF THE BUDGET OF THE TOWN OF ORO VALLEY FOR THE FISCAL YEAR 2018-2019 WHEREAS, on May 16, 2018, in accordance with Arizona Revised Statutes §§ 42-17101 and 42- 17102, the Town authorized an estimate of the different amounts required to meet the public expenditures for the ensuing year, an estimate of revenues from sources other than direct taxation and the amount to be raised by taxation upon real and personal property of the Town of Oro Valley; and WHEREAS, after notice of a public hearing in accordance with Arizona Revised Statutes §§ 42- 17103, 42-17104 and 42-17105, the Council met on June 6, 2018, at which time any taxpayer was entitled to appear and be heard in favor of or against any of the proposed expenditures or tax levies before the Council adopted the estimates of the proposed expenditures, constituting the budget of the Town of Oro Valley for the Fiscal Year 2018/2019; and WHEREAS,the sums to be raised by taxation, as specified therein, do not in the aggregate amount exceed the primary property tax levy limits as calculated in accordance with Arizona Revised Statutes § 42-17051(A); and WHEREAS, it is in the best interest of the Town of Oro Valley to approve the estimates and expenditures/expenses shown on the accompanying schedules for the Fiscal Year 2018-2019. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the said estimates of revenues and expenditures/expenses shown on the accompanying schedules, as now increased, reduced or changed, are hereby adopted and approved as the budget of the Town of Oro Valley for the Fiscal Year 2018-2019 in the amount of $142,906,231. BE IT FURTHER RESOLVED that the Mayor and Council of the Town of Oro Valley are hereby authorized to take such steps as are necessary to execute and implement the budget for the Fiscal Year 2018-2019. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 6th day of June 2018. TOWN OF ORO VALLEY, ARIZONA Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: OFFICIAL BUDGET FORMS TOWN OF ORO VALLEY Fiscal Year 2019 4/15 Fiscal YearGeneral FundSpecial Revenue Funds Debt Service FundsCapital Project Funds Permanent FundEnterprise Funds AvailableInternal Service Fund Total All Funds2018 Adopted/Adjusted Budgeted Expenditures/Expenses* E 45,723,048 12,972,007 1,080,065 36,871,203 0 25,884,371 6,036,811 128,567,5052018 Actual Expenditures/Expenses** E 33,628,359 11,778,607 1,024,706 10,007,588 0 19,228,511 4,275,462 79,943,2332019 Fund Balance/Net Position at July 1*** 15,035,308 1,025,842 99,564 21,318,245 9,514,215 578,559 47,571,7332019 Primary Property Tax LevyB002019 Secondary Property Tax LevyB02019 Estimated Revenues Other than Property Taxes C 38,788,563 10,540,507 332,006 15,837,355 0 19,807,733 3,828,334 89,134,4982019 Other Financing Sources D 0 0 0 3,000,000 0 3,200,000 0 6,200,0002019 Other Financing (Uses) D 0 000000 02019 Interfund Transfers In D 120,000 550,000 884,094 3,403,000 0 0 0 4,957,0942019 Interfund Transfers (Out) D 4,700,514 253,999 0 0 0 2,581 0 4,957,0942019 Reduction for Amounts Not Available:LESS: Amounts for Future Debt Retirement:00002019 Total Financial Resources Available49,243,357 11,862,350 1,315,664 43,558,600 0 32,519,367 4,406,893 142,906,2312019 Budgeted Expenditures/Expenses E 49,243,357 11,862,350 1,315,664 43,558,600 0 32,519,367 4,406,893 142,906,231EXPENDITURE LIMITATION COMPARISON2018 20191. Budgeted expenditures/expenses 128,567,505$ 142,906,231$ 2. Add/subtract: estimated net reconciling items3. Budgeted expenditures/expenses adjusted for reconciling items128,567,505 142,906,231 4. Less: estimated exclusions5. Amount subject to the expenditure limitation128,567,505$ 142,906,231$ 6. EEC expenditure limitation128,567,505$ 142,906,231$ X******Amounts on this line represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund).SchFUNDSIncludes Expenditure/Expense Adjustments Approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.TOWN OF ORO VALLEYSummary Schedule of Estimated Revenues and Expenditures/ExpensesFiscal Year 2019Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. 4/15SCHEDULE A ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2018 2018 2019 GENERAL FUND Local taxes Local Sales Tax $ 16,544,573 $ 17,611,208 18,752,418 Cable Franchise Tax 620,000 655,379 685,000 Licenses and permits Licenses 200,000 202,000 204,000 Permits 1,740,236 2,055,454 1,797,596 Fees 122,885 197,719 134,500 Intergovernmental State/County Shared 11,636,928 11,540,562 11,708,575 State Grants 234,760 114,200 118,800 Federal Grants 471,342 426,836 596,162 Reimbursements 1,698,360 1,557,331 1,715,900 Other 95,000 90,000 90,000 Charges for services Reimbursements 151,000 135,000 135,000 Fees 1,244,691 1,191,535 1,259,945 Other 814,762 815,176 1,013,917 Fines and forfeits Fines 120,000 120,000 120,000 Interest on investments Interest Income 103,000 (11,722)150,000 Miscellaneous Miscellaneous 233,000 295,714 306,750 Total General Fund $ 36,030,537 $ 36,996,392 $ 38,788,563 * TOWN OF ORO VALLEY Revenues Other Than Property Taxes Fiscal Year 2019 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. SOURCE OF REVENUES 4/15 SCHEDULE C ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2018 2018 2019 TOWN OF ORO VALLEY Revenues Other Than Property Taxes Fiscal Year 2019 SOURCE OF REVENUES SPECIAL REVENUE FUNDS Highway User Revenue Fund Highway User Fuel Tax $ 3,363,581 $ 3,363,581 3,291,659 Permits 57,000 44,948 48,700 Interest Income 36,994 26,524 50,000 Charges for Services State Grants 100,000 114,011 165,000 Other 2,000 4,103 3,000 $ 3,559,575 $ 3,553,167 3,558,359 Bed Tax Fund Local Sales Tax $ 1,126,955 $ 1,279,940 Interest Income 8,011 1,678 $ 1,134,966 $ 1,281,618 Seizures & Forfeitures Seizures & Forfeitures $ 275,000 $ 275,000 325,000 Interest Income 3,600 $ 275,000 $ 278,600 325,000 Impound Fee Fund Fees $ 40,000 $ 34,288 $ 40,000 $ 34,288 Community Center Fund Local Sales Tax $ 2,308,112 $ 2,308,112 2,384,558 Charges for Services 4,159,931 4,344,109 4,253,088 Other 27,861 19,502 19,502 $ 6,495,904 $ 6,671,723 6,657,148 Total Special Revenue Funds $ 11,505,445 $ 11,819,396 $ 10,540,507 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/15 SCHEDULE C ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2018 2018 2019 TOWN OF ORO VALLEY Revenues Other Than Property Taxes Fiscal Year 2019 SOURCE OF REVENUES DEBT SERVICE FUNDS Municipal Debt Service Fund Federal Grants $ 51,403 $ 51,403 47,578 Interest Income 3,500 Miscellaneous 90,000 100,000 100,000 $ 141,403 $ 154,903 147,578 Oracle Road Improvement District Special Assessments $ 186,520 $ 186,520 184,428 $ 186,520 $ 186,520 184,428 Total Debt Service Funds $ 327,923 $ 341,423 $ 332,006 CAPITAL PROJECTS FUNDS Alternative Water Resources Development Impact Fee Fund Development Impact Fees $ 1,387,819 $ 1,496,413 1,476,597 Interest Income 34,485 4,905 34,485 $ 1,422,304 $ 1,501,318 1,511,082 Potable Water System Development Impact Fee Fund Development Impact Fees $ 691,333 $ 743,413 735,557 Interest Income 37,238 (11,523)37,238 $ 728,571 $ 731,890 772,795 Townwide Roadway Development Impact Fee Fund Development Impact Fees $ 906,401 $ 724,670 510,964 Interest Income 5,000 17,800 10,000 State Grants 250,000 $ 911,401 $ 742,470 770,964 Parks and Recreation Impact Fee Fund Development Impact Fees $ 294,505 $ 261,080 261,936 Interest Income 2,000 2,000 $ 294,505 $ 263,080 263,936 Police Impact Fee Fund Development Impact Fees $ 128,207 $ 141,069 111,678 Interest Income 2,000 $ 128,207 $ 143,069 111,678 General Government Impact Fee Fund Interest Income $ $ 15 $$15 Capital Fund Miscellaneous $ $ 420,400 $ $ 420,400 PAG/RTA Fund State Grants $ 7,899,982 $ 5,551,200 11,964,000 Other 22,500 71,029 22,500 $ 7,922,482 $ 5,622,229 11,986,500 Total Capital Projects Funds $ 11,407,470 $ 9,004,071 $ 15,837,355 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/15 SCHEDULE C ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2018 2018 2019 TOWN OF ORO VALLEY Revenues Other Than Property Taxes Fiscal Year 2019 SOURCE OF REVENUES ENTERPRISE FUNDS Water Utility Fund Water Sales $ 12,075,700 $ 13,403,654 13,152,900 Charges for Services 3,225,300 3,331,215 3,183,500 Interest Income 93,164 (16,969)62,333 Miscellaneous 2,745 $ 15,394,164 $ 16,720,645 16,398,733 Stormwater Utility Fund Charges for Services $ 1,402,500 $ 1,394,180 1,407,000 Interest Income 500 3,103 2,000 State Grants 2,000,000 Miscellaneous 51 $ 1,403,000 $ 1,397,334 3,409,000 Total Enterprise Funds $ 16,797,164 $ 18,117,979 $ 19,807,733 INTERNAL SERVICE FUNDS Fleet Fund Fleet Services $ 760,000 $ 836,858 Miscellaneous 394,896 400,896 $ 1,154,896 $ 1,237,754 Benefit Self Insurance Fund Miscellaneous $ 3,645,264 $ 3,651,064 3,828,334 $ 3,645,264 $ 3,651,064 3,828,334 Total Internal Service Funds $ 4,800,160 $ 4,888,818 $ 3,828,334 TOTAL ALL FUNDS $ 80,868,699 $ 81,168,079 $ 89,134,498 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/15 SCHEDULE C FUND SOURCES <USES> IN <OUT> GENERAL FUND Transfer from Community Center Fund $ $ 120,000 $ Transfer to Highway Fund 550,000 Transfer to Municipal Debt Service Fund 744,514 Transfer to Oracle Rd Improvement District Fund 3,000 Transfer to Capital Fund 3,403,000 Total General Fund $ $ $ 120,000 $ 4,700,514 SPECIAL REVENUE FUNDS Highway Fund $ $ 550,000 Community Center Fund 253,999 Total Special Revenue Funds $ $ $ 550,000 $ 253,999 DEBT SERVICE FUNDS Municipal Debt Service Fund $ $ $ 881,094 $ Oracle Road Improvement District Fund 3,000 Total Debt Service Funds $ $ $ 884,094 $ CAPITAL PROJECTS FUNDS Capital Fund $ $ $ 3,403,000 Community Center Bond Fund 3,000,000 Total Capital Projects Funds $ 3,000,000 $ $ 3,403,000 $ ENTERPRISE FUNDS Water Utility Fund $ 3,200,000 $ $ $ 2,581 Total Enterprise Funds $ 3,200,000 $ $ $ 2,581 TOTAL ALL FUNDS $ 6,200,000 $ $ 4,957,094 $ 4,957,094 2019 2019 TOWN OF ORO VALLEY Other Financing Sources/<Uses> and Interfund Transfers Fiscal Year 2019 OTHER FINANCING INTERFUND TRANSFERS 4/15 SCHEDULE D ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2018 2018 2018 2019 GENERAL FUND Clerk $ 485,098 $ $ 485,098 444,559 Council 214,759 214,759 210,494 Community Development & Public Works 4,893,469 4,844,157 Community and Economic Development 2,869,324 Public Works 3,518,946 Administrative Services 3,375,735 3,343,602 4,450,555 General Administration 1,682,216 1,682,216 2,696,700 Legal 779,670 749,302 793,567 Magistrate Court 874,282 874,282 884,385 Town Manager's Office 844,708 828,524 1,251,370 Parks and Recreation 3,667,092 3,554,323 3,606,586 Police 17,108,674 16,977,096 16,557,555 Contingency Reserve 11,797,345 75,000 11,959,316 Total General Fund $ 45,723,048 $ $ 33,628,359 $ 49,243,357 SPECIAL REVENUE FUNDS Highway User Revenue Fund $ 5,085,635 $ $ 4,099,535 4,912,895 Seizures and Forfeitures 420,336 302,288 604,393 Bed Tax Fund 1,070,446 850,481 Impound Fee Fund 65,345 59,606 Community Center Fund 6,330,245 6,466,697 6,345,062 Total Special Revenue Funds $ 12,972,007 $ $ 11,778,607 $ 11,862,350 DEBT SERVICE FUNDS Municipal Debt Service Fund $ 883,551 $ $ 835,186 1,121,499 Oracle Road Improvement District Fund 196,514 189,520 194,165 Total Debt Service Funds $ 1,080,065 $ $ 1,024,706 $ 1,315,664 CAPITAL PROJECTS FUNDS Townwide Roadway Dev Impact Fee Fund $ 3,935,497 $ $ 1,458,500 3,152,090 Alternative Water Rscs Dev Impact Fee Fund 7,627,267 186,844 9,297,630 Potable Water System Dev Impact Fee Fund 6,173,575 356,627 6,706,102 Parks and Recreation Impact Fee Fund 239,112 502,602 Police Impact Fee Fund 623,245 760,029 General Government Impact Fee Fund 3,525 3,539 Recreation In Lieu Fee Fund 15,718 15,718 Capital Fund 4,034,577 1,811,423 7,253,256 PAG/RTA Fund 8,518,687 5,625,857 12,867,634 Energy Efficiency Project Fund 700,000 568,337 Capital Project Bond Fund 5,000,000 Community Center Bond Fund 3,000,000 Total Capital Projects Funds $ 36,871,203 $ $ 10,007,588 $ 43,558,600 ENTERPRISE FUNDS Water Utility Fund $ 23,965,923 $ $ 17,922,811 28,415,612 Stormwater Utility Fund 1,918,448 1,305,700 4,103,755 Total Enterprise Funds $ 25,884,371 $ $ 19,228,511 $ 32,519,367 INTERNAL SERVICE FUNDS Fleet Fund $ 2,377,939 $ $ 1,316,314 Benefit Self Insurance Fund 3,658,872 2,959,148 4,406,893 Total Internal Service Funds $ 6,036,811 $ $ 4,275,462 4,406,893 TOTAL ALL FUNDS $ 128,567,505 $ $ 79,943,233 $ 142,906,231 * Expenditures/Expenses by Fund Fiscal Year 2019 TOWN OF ORO VALLEY Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. FUND/DEPARTMENT 4/15 SCHEDULE E ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2018 2018 2018 2019 Clerk: General Fund $ 485,098 $ 485,098 $ 444,559 Department Total $ 485,098 $ $ 485,098 $ 444,559 Council: General Fund $ 214,759 $ $ 214,759 $ 210,494 Department Total $ 214,759 $ $ 214,759 $ 210,494 Community Development & Public Works: General Fund $ 4,893,469 $ $ 4,844,157 $ Highway Fund 5,085,635 4,099,535 $ Townwide Roadway Dev Impact Fee Fund 3,935,497 1,458,500 Stormwater Utility Fund 1,918,448 1,305,700 Fleet Fund 2,377,939 1,316,314 PAG/RTA Fund 8,518,687 5,625,857 Department Total $ 26,729,675 $ $ 18,650,063 $ Community and Economic Development: General Fund $ $ $ $ 2,869,324 Department Total $ 214,759 $ $ $ 2,869,324 Public Works: General Fund $ $ $ $ 3,518,946 Highway Fund $ 4,912,895 Stormwater Utility Fund 4,103,755 PAG/RTA Fund 12,867,634 Townwide Roadway Dev Impact Fee Fund 3,152,090 Department Total $ $ $ $ 28,555,320 Administrative Services: General Fund $ 3,375,735 $ $ 3,343,602 $ 4,450,555 Department Total $ 3,375,735 $ $ 3,343,602 $ 4,450,555 General Administration: General Fund $ 1,682,216 $ $ 1,682,216 $ 2,696,700 General Fund - Contingency Reserve 11,797,345 75,000 11,959,316 Municipal Debt Service Fund 883,551 835,186 1,121,499 Oracle Road Improvement District Fund 196,514 189,520 194,165 Benefit Self Insurance Fund 3,658,872 2,959,148 4,406,893 General Government Impact Fee Fund 3,525 3,539 Capital Fund 4,034,577 1,811,423 7,253,256 Energy Efficiency Project Fund 700,000 568,337 Capital Project Bond Fund 5,000,000 Department Total $ 27,956,600 $ $ 8,120,830 $ 27,635,368 Legal: General Fund $ 779,670 $ $ 749,302 $ 793,567 Department Total $ 779,670 $ $ 749,302 $ 793,567 * Expenditures/Expenses by Department Fiscal Year 2019 TOWN OF ORO VALLEY DEPARTMENT/FUND Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 4/15 SCHEDULE F ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2018 2018 2018 2019 Expenditures/Expenses by Department Fiscal Year 2019 TOWN OF ORO VALLEY DEPARTMENT/FUND Magistrate Court: General Fund $ 874,282 $ $ 874,282 $ 884,385 Department Total $ 874,282 $ $ 874,282 $ 884,385 Town Manager's Office: General Fund $ 844,708 $ $ 828,524 $ 1,251,370 Bed Tax Fund 1,070,446 850,481 Department Total $ 1,915,154 $ $ 1,679,005 $ 1,251,370 Parks and Recreation: General Fund $ 3,667,092 $ $ 3,554,323 $ 3,606,586 Parks and Recreation Impact Fee Fund 239,112 502,602 Recreation In Lieu Fee Fund 15,718 15,718 Community Center Fund 6,330,245 6,466,697 6,345,062 Community Center Bond Fund 3,000,000 Department Total $ 10,252,167 $ $ 10,021,020 $ 13,469,968 Police: General Fund $ 17,108,674 $ $ 16,977,096 $ 16,557,555 Seizures and Forfeitures 420,336 302,288 604,393 Police Impact Fee Fund 623,245 760,029 Impound Fee Fund 65,345 59,606 Department Total $ 18,217,600 $ $ 17,338,990 $ 17,921,977 Water Utility: Water Utility Fund $ 23,965,923 $ $ 17,922,811 $ 28,415,612 Alternative Water Rscs Dev Impact Fee Fund 7,627,267 186,844 9,297,630 Potable Water System Dev Impact Fee Fund 6,173,575 356,627 6,706,102 Department Total $ 37,766,765 $ $ 18,466,282 $ 44,419,344 *Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 4/15 SCHEDULE F Full-Time Equivalent (FTE)Employee Salaries and Hourly Costs Retirement Costs Healthcare CostsOther Benefit CostsTotal Estimated Personnel Compensation2019 2019 2019 2019 2019 2019291.82 18,462,424 4,084,526 2,532,564 1,956,836 27,036,350Highway Fund 27.15 1,713,720 202,219 273,550 188,197 2,377,686Seizures and Forfeitures 1.00 49,911 18,487 11,446 6,821 86,665Community Center Fund 20.61 662,087 16,073 34,858 56,311 769,329Total Special Revenue Funds48.76 $ 2,425,718 $ 236,779 $ 319,854 $ 251,329 $ 3,233,680Water Utility Fund 39.48 2,423,543 283,950 399,487 234,195 3,341,175Stormwater Utility Fund 10.25 566,227 66,815 78,124 57,821 768,987Total Enterprise Funds49.73 $ 2,989,770 $ 350,765 $ 477,611 $ 292,016 $ 4,110,162TOTAL ALL FUNDS390.31 $ 23,877,912 $ 4,672,070 $ 3,330,029 $ 2,500,181 $ 34,380,192SPECIAL REVENUE FUNDSENTERPRISE FUNDSFUNDTOWN OF ORO VALLEYFull-Time Employees and Personnel CompensationFiscal Year 2019GENERAL FUND 4/15SCHEDULE G Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalGENERAL IMPROVEMENTSCourthouse Remodel (Rollover) 200,000$ 200,000$ Town Hall Admin Bldg Front Office Enhancements 80,000$ 80,000$ Town Facilities - Roof Replacements 252,000$ 252,000$ Recreation Software Upgrade 60,000$ 60,000$ Field Renovation at JDK Park 340,000$ 200,000$ 540,000$ National Incident Based Reporting System 95,100$ 95,100$ Emergency Operations Center Generator 145,900$ 145,900$ Upgrade Desktop Oper. System - Windows 10 75,000$ 200,000$ 275,000$ IT Townwide Facility Improvements 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ Police Property/ID & Southern Substation Bldg. 4,720,442$ 4,720,442$ Steam Pump Ranch Improvements 75,000$ 50,000$ 50,000$ 50,000$ 500,000$ 300,000$ 100,000$ 200,000$ 300,000$ 1,625,000$ Tennis Court Improvements 80,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 430,000$ Municipal Complex Renovations750,000$ 750,000$ 1,500,000$ Rancho Vistoso Blvd. Street Lights (Crcts. 1 & 3) 450,000$ 450,000$ Main Streets Project Investment 150,000$ 50,000$ 150,000$ 50,000$ 400,000$ Axon Fleet Video Cameras 250,500$ 250,500$ Improvements at 680 Calle Concordia Facilities 50,000$ 50,000$ Convert Soccer Field to Softball-Riverfront Park 300,000$ 300,000$ Improve Irrigation System at Riverfront Park400,000$ 400,000$ Renovate Softball Fields at Riverfront Park150,000$ 150,000$ 300,000$ Playground Upgrades at Riverfront Park75,000$ 75,000$ 150,000$ New Ramadas at JDK Park 75,000$ 75,000$ 75,000$ 225,000$ Playground at Naranja Park 350,000$ 350,000$ Expand and Upgrade Green Field at JDK Park150,000$ 150,000$ Move Dog Park at JDK Park100,000$ 100,000$ Honeybee Canyon Park Upgrades75,000$ 75,000$ 75,000$ 225,000$ Mobile Stage150,000$ 150,000$ Town Hall Parking Lot Landscaping75,000$ 75,000$ 150,000$ Replacement Phone System 300,000$ 300,000$ Town Backups200,000$ 200,000$ Server Operating System Upgrade 50,000$ 60,000$ 110,000$ Network Storage Upgrade 50,000$ 60,000$ 72,000$ 182,000$ Database Licensing80,000$ 85,000$ 165,000$ Virtual Server Host System Replacement 60,000$ 60,000$ 120,000$ Replace Network Infrastructure Hardware 50,000$ 200,000$ 250,000$ IT Regulatory Compliance50,000$ 50,000$ 50,000$ 150,000$ Replace Police Command Post300,000$ 300,000$ TOTAL GENERAL IMPROVEMENTS 6,173,442$ 1,385,500$ 400,000$ 1,530,000$ 860,000$ 2,550,000$ 1,285,000$ 445,000$ 400,000$ 522,000$ 15,550,942$ CAPITAL IMPROVEMENT PROGRAM Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalCAPITAL IMPROVEMENT PROGRAMHIGHWAY FUND IMPROVEMENTSProgramsPavement Preservation Program 800,000$ 1,400,000$ 1,411,200$ 1,422,490$ 1,433,870$ 1,445,340$ 1,456,903$ 1,468,558$ 1,480,307$ 1,492,149$ 13,810,817$ Illuminated Street Signs (2 Intersections per Yr) 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 55,000$ 385,000$ Sidewalk Safety Program 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 150,000$ 150,000$ 150,000$ 150,000$ 850,000$ ProjectsTangerine Access to Safeway (1st Ave) - Safety 250,000$ 250,000$ Rancho Vistoso Blvd. Street Lights (Crcts. 1 & 3) 435,000$ 435,000$ EquipmentGannon & Mower-Replacement 80,000$ 80,000$ 2000 Gallon Water Truck- Replacement 115,000$ 115,000$ 4000 Gallon Water Truck- Replacement 130,000$ 130,000$ 9-Wheel Roller80,000$ 80,000$ 5-7 Cubic Yard Bobtail End Dump 110,000$ 110,000$ 10 Wheel End Dump Truck - Replacement 145,000$ 150,000$ 295,000$ Steel Drum Roller70,000$ 70,000$ Wood Chipper70,000$ 70,000$ Crack Seal Melter90,000$ 95,000$ 185,000$ Side Cast Sweeper100,000$ 100,000$ 200,000$ 3 - 3.5 Cubic Yard Loader250,000$ 250,000$ Rubber Tire Small Skid Steer LDR70,000$ 70,000$ Motorgrader/Blade350,000$ 350,000$ Compressor40,000$ 40,000$ Walk Behind Roller45,000$ 45,000$ TOTAL HIGHWAY FUND 1,485,000$ 1,700,000$ 1,836,200$ 1,742,490$ 1,798,870$ 1,800,340$ 1,756,903$ 2,023,558$ 1,885,307$ 1,792,149$ 17,820,817$ COMMUNITY CENTER (CC) BOND FUNDED IMPROVEMENTSCommunity Center Improvements 1,200,000$ 1,200,000$ 2,400,000$ Golf Course Irrigation Replacement 1,800,000$ 1,800,000$ 3,600,000$ TOTAL CC BOND FUNDED IMPROVEMENTS 3,000,000$ 3,000,000$ -$ -$ -$ -$ -$ -$ -$ -$ 6,000,000$ ROADWAY IMPACT FEE FUND IMPROVEMENTSLa Cholla Blvd from Overton to Tangerine 800,000$ 800,000$ La Cañada and Moore Intersection Improvement 1,000,000$ 1,000,000$ 1st Avenue/Oracle Traffic Feasibility Study 50,000$ 50,000$ La Cholla and Moore Intersection Improvement 450,000$ 450,000$ 900,000$ TOTAL ROADWAY IMPACT FEE FUND 1,800,000$ 50,000$ 450,000$ 450,000$ -$ -$ -$ -$ -$ -$ 2,750,000$ Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalCAPITAL IMPROVEMENT PROGRAMPAG/RTA FUND IMPROVEMENTSTransportation Art by Youth Program (TABY) Rollover 35,000$ 75,000$ 75,000$ 75,000$ 260,000$ La Cholla Blvd from Overton to Tangerine 11,929,000$ 9,180,000$ 21,109,000$ Palisades Road Multi-Use Path 285,000$ 285,000$ TOTAL PAG/RTA FUND 12,249,000$ 9,180,000$ 75,000$ -$ -$ 75,000$ -$ -$ 75,000$ -$ 21,654,000$ POLICE IMPACT FEE FUND IMPROVEMENTSPolice Property/ID & Southern Substation Building 650,000$ 650,000$ TOTAL POLICE IMPACT FEE FUND 650,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 650,000$ PARKS & RECREATION IMPACT FEE FUND IMPROVEMENTSNew Fields at Naranja Park600,000$ 600,000$ 1,200,000$ TOTAL PARKS & RECREATION IMPACT FEE FUND -$ -$ -$ -$ -$ 600,000$ 600,000$ -$ -$ -$ 1,200,000$ FLEET REPLACEMENTSVehicles 816,750$ 900,000$ 900,000$ 945,000$ 945,000$ 945,000$ 945,000$ 1,092,250$ 1,092,250$ 1,092,250$ 9,673,500$ 680 Calle Concordia Fueling & Facility Upgrades 55,000$ 90,000$ 145,000$ Maintenance Service Truck 100,000$ 100,000$ TOTAL FLEET REPLACEMENTS 816,750$ 955,000$ 1,090,000$ 945,000$ 945,000$ 945,000$ 945,000$ 1,092,250$ 1,092,250$ 1,092,250$ 9,918,500$ Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalWATER UTILITY FUNDExisting System ImprovementsWellsNakoma Sky Replacement Drill and Construct 1,500,000$ 1,500,000$ Well D8 Replacement Drill and Construct700,000$ 800,000$ 1,500,000$ Electromagnetic Flow Meter Replacements (20) 75,000$ 75,000$ 150,000$ Well Replacement Program700,000$ 1,000,000$ 1,700,000$ Hydropneumatic Tank Replacement Phase IV 100,000$ 100,000$ 100,000$ 300,000$ Production Well Modifications 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ Replace Well Pumps 100,000$ 100,000$ 100,000$ 100,000$ 400,000$ Boosters High Mesa E and F Zone Booster Enhancements 50,000$ 50,000$ El Con Storage - Operational Improvements 50,000$ 50,000$ Replace Crimson Canyon Booster Station 250,000$ 250,000$ Hydropneumatic Tank Replacement Phase II 100,000$ 100,000$ 100,000$ 300,000$ Woodburn Booster Relocation E-F Zone 100,000$ 500,000$ 600,000$ Booster Station Modifications 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ Mains12-Inch F- Zone Main (Woodburne Booster) 100,000$ 100,000$ Fire Line Backflow Protection 188,000$ 188,000$ 188,000$ 564,000$ Drinking Fountain Rework 50,000$ 50,000$ Valve Exercising and Documentation 150,000$ 150,000$ Rancho Feliz Valve and DVA Replacement 150,000$ 150,000$ Countryside 40 DVA Replacements 210,000$ 210,000$ PRVs - Corbett Lane (E-1) and Aldersprings 70,000$ 60,000$ 130,000$ Rancho Verde Hydrants100,000$ 100,000$ Main Valve Replacements 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ La Cholla Relocation - Lambert to Tangerine (RTA) 600,000$ 200,000$ 800,000$ Rancho Vistoso Main Replacement250,000$ 250,000$ Hilton Hotel & Casitas Main Replacement150,000$ 1,300,000$ 1,450,000$ Linda Vista Citrus Tracts Main Replacement 250,000$ 250,000$ 250,000$ 750,000$ Pusch Ridge Estates Main Replacement500,000$ 500,000$ 1,000,000$ Tucson Water Wheeling - Oracle/Hardy 450,000$ 450,000$ Monte Del Oro Main Replacement600,000$ 600,000$ 1,200,000$ Rancho Verde Main Replacement800,000$ 800,000$ 1,600,000$ Structures & WallsWall Upgrades and Improvements 85,000$ 110,000$ 100,000$ 100,000$ 395,000$ Operations Office Improvements - Reclaim 150,000$ 150,000$ CAPITAL IMPROVEMENT PROGRAM Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalCAPITAL IMPROVEMENT PROGRAMMeters & EquipmentSCADA Legacy Replacement 100,000$ 100,000$ 200,000$ Instrumentation Replacement250,000$ 250,000$ 500,000$ Electric Sub Metering Wells/Boosters 75,000$ 75,000$ TOTAL EXISTING SYSTEM IMPROVEMENTS 3,518,000$ 1,718,000$ 1,538,000$ 1,000,000$ 1,800,000$ 2,800,000$ 700,000$ 1,300,000$ 1,900,000$ 1,400,000$ 17,674,000$ Central Arizona Project (CAP) Improvements (Existing Customers)Northwest Recharge, Recovery and Delivery System (NWRRDS) Partnered ProjectsProgram Support Services 160,000$ 44,000$ 192,000$ 296,000$ 8,000$ 700,000$ Pipeline Design 440,462$ 440,462$ Forebay Design 66,154$ 66,154$ Well Improvement Analysis & Permitting 40,000$ 40,000$ Well Drilling and Testing 234,000$ 234,000$ Pipeline Construction880,923$ 880,923$ 1,761,846$ Forebay Reservoir Construction132,077$ 132,077$ 264,154$ Well Construction Permit/Drill/Develop/Test780,000$ 780,000$ Well Equipping Design/Site Improvements390,000$ 390,000$ NWRRDS Independent ProjectsPipeline Route Study & Prelim Design 80,000$ 80,000$ Reservoir & Booster Property Acquisition 80,000$ 80,000$ Pipeline Easement Acquisition 300,000$ 300,000$ Pipeline Design (9.68 miles 16" DIP) 560,000$ 560,000$ NWRRDS Reservoir & Booster Station Design 40,000$ 40,000$ Shannon Reservoir & Booster Station Design 120,000$ 120,000$ NWRRDS Booster Station Construction200,000$ 200,000$ Shannon Reservoir Construction280,000$ 280,000$ 560,000$ Shannon Booster Station Construction100,000$ 100,000$ 200,000$ Pipeline Construction From NWRRDS to La Cañada3,920,000$ 3,920,000$ NWRRDS Interconnect to Tangerine180,000$ 180,000$ NWRRDS Interconnect to Lambert340,000$ 340,000$ TOTAL CAP IMPROVEMENTS 240,000$ 1,570,616$ 546,000$ 1,309,000$ 2,771,000$ 4,820,000$ -$ -$ -$ -$ 11,256,616$ TOTAL WATER UTILITY FUND 3,758,000$ 3,288,616$ 2,084,000$ 2,309,000$ 4,571,000$ 7,620,000$ 700,000$ 1,300,000$ 1,900,000$ 1,400,000$ 28,930,616$ Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalALTERNATIVE WATER RESOURCES DEVELOPMENT IMPACT FEE (AWRDIF) FUNDCentral Arizona Project (CAP) Improvements (New Growth)Northwest Recharge, Recovery and Delivery System (NWRRDS) Partnered ProjectsProgram Support Services 240,000$ 66,000$ 288,000$ 444,000$ 12,000$ 1,050,000$ Pipeline Design 660,692$ 660,692$ Forebay Design 99,231$ 99,231$ Well Improvement Analysis & Permitting 60,000$ 60,000$ Well Drilling and Testing 351,000$ 351,000$ Pipeline Construction1,321,385$ 1,321,384$ 2,642,769$ Forebay Reservoir Construction198,116$ 198,115$ 396,231$ Well Construction Permit/Drill/Develop/Test1,170,000$ 1,170,000$ Well Equipping Design/Site Improvements585,000$ 585,000$ NWRRDS Independent ProjectsPipeline Route Study & Prelim Design 120,000$ 120,000$ Reservoir & Booster Property Acquisition 120,000$ 120,000$ Pipeline Easement Acquisition 450,000$ 450,000$ Pipeline Design (9.68 miles 16" DIP) 840,000$ 840,000$ NWRRDS Reservoir & Booster Station Design 60,000$ 60,000$ Shannon Reservoir & Booster Station Design 180,000$ 180,000$ NWRRDS Booster Station Construction300,000$ 300,000$ Shannon Reservoir Construction420,000$ 420,000$ 840,000$ Shannon Booster Station Construction150,000$ 150,000$ 300,000$ Pipeline Construction From NWRRDS to La Cañada5,880,000$ 5,880,000$ NWRRDS Interconnect to Tangerine270,000$ 270,000$ NWRRDS Interconnect to Lambert510,000$ 510,000$ TOTAL AWRDIF FUND 360,000$ 2,355,923$ 819,000$ 1,963,501$ 4,156,499$ 7,230,000$ -$ -$ -$ -$ 16,884,923$ POTABLE WATER SYSTEM DEVELOPMENT IMPACT FEE (PWSDIF) FUNDExpansion-Related ImprovementsSteam Pump Well Drill and Construct 700,000$ 800,000$ 1,500,000$ Property Acquisition 500,000$ 500,000$ Booster Station150,000$ 300,000$ 450,000$ 1.0 MG Reservoir150,000$ 1,000,000$ 500,000$ 1,650,000$ New 16" Pipe Main150,000$ 1,500,000$ 1,650,000$ Moore Road Interconnect 750,000$ 750,000$ TOTAL PWSDIF FUND 700,000$ 1,300,000$ 1,050,000$ 1,450,000$ 2,000,000$ -$ -$ -$ -$ -$ 6,500,000$ CAPITAL IMPROVEMENT PROGRAM Fund and Project Name FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 10-Year TotalSTORMWATER UTILITY FUNDCatalina Ridge - Mitigation Grant Channel Repair 2,000,000$ 280,000$ 280,000$ 2,560,000$ Calle Buena Vista at Carmack Wash - Low Flow Culvert 250,000$ 250,000$ Major Stormwater Maintenance Projects 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ 400,000$ 3,600,000$ Street Sweeper - Replacement (2)280,000$ 280,000$ 560,000$ Side Cast Sweeper - Replacements (2) 85,000$ 85,000$ 170,000$ TOTAL STORMWATER UTILITY FUND 2,250,000$ 485,000$ 400,000$ 960,000$ 400,000$ 400,000$ 400,000$ 485,000$ 960,000$ 400,000$ 7,140,000$ TOTAL ALL FUNDS 33,242,192$ 23,700,039$ 8,204,200$ 11,349,991$ 14,731,369$ 21,220,340$ 5,686,903$ 5,345,808$ 6,312,557$ 5,206,399$ 134,999,798$ CAPITAL IMPROVEMENT PROGRAM