HomeMy WebLinkAboutPackets - Council Packets (983) AGENDA
ORO VALLEY TOWN COUNCIL
STUDY SESSION/BUDGET WORK SESSION
MAY 15, 2006
ORO VALLEY TOWN COUNCIL CHAMBERS
11,000 N. LA CANADA DRIVE
STUDY SESSION
CALL TO ORDER: 5:00 P.M.
ROLL CALL
1. REVIEW AND DISCUSSION OF TOWN COUNCIL SUBCOMMITTEE
DRAFT, MARCH 3, 2006 MINUTES REGARDING THE EMPLOYEE FORUMS
BUDGET WORK SESSION
2. REVIEW OF FOLLOW-UP MEMO FROM MAY 8TH AND MAY 10TH
BUDGET STUDY SESSIONS
3. REVIEW OF CUMULATIVE BUDGET ADUSTMENTS THROUGH
MAY 10TH
4. REVIEW OF PUBLIC WORKS DEPARTMENT
A. Public Works Highway Fund Page 160
B. Public Works General Fund Page 170
C. Public Works Transportation Fund Page 175
D. Storm Water Utility Fund Page 183
E. Custodial/Facilities Maintenance Page 189
F. Townwide Roadway Development Impact Fee Page 193
G. Municipal Operations Center Fund Page 197
H. Oracle Road Construction Fund Page 199
ADJOURNMENT
"Notice of Possible Quorum of the Oro Valley Finance and Bond
Committee: In accordance with Chapter 3, Title 38, Arizona Revised
Statutes, a majority of the Finance and Bond Committee may attend the
above referenced meeting."
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 Oro Valley Town Clerk, at 229-4700
POSTED: 05/12/05
4:00 p.m.
lh .
TOWN OF ORO VALLEY 1
STUDY SESSION
COUNCIL COMMUNICATION MEETING DATE: MAY 15, 2006
TO: HONORABLE MAYOR & COUNCIL
FROM: Roxana Garrity, Deputy Town Clerk
SUBJECT: REVIEW OF EMPLOYEE FORUM MINUTES
SUMMARY:
Policy 29 of the Town's Personnel Policy and Procedures provides for an annual Employee Forum which gives
the Town employees the "opportunity to communicate suggestions and views regarding areas that significantly
impact their working conditions with the Town of Oro Valley."
This year the format was changed to allow more input from employees through a subcommittee of the Town
Council. On March 3, 2006, the subcommittee met with Town employees in four sessions. Attached for your
review are the draft Employee Forum Minutes from those sessions.
ATTACHMENT:
1. Draft Employee Forum Minutes
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Town Manager I.
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Department Head
EMPLOYEE FORUMS
Introduction
The Council Subcommittee consisted of Mayor Loomis, Council members Helen
Dankwerth and Barry Gillaspie. The full subcommittee met with Town employees on
March 3, 2006, at four sessions: 6:00 a.m., 10:00 a.m., 2:00 p.m. and 8:30 p.m. The
forums were held in the Council Chambers, (for the first three meetings) and the Training
room at the Police Dept (for the 8:30 p.m. meeting). An informal setting allowed
everyone the opportunity to speak. The intent of these forums was to work together to
improve working conditions and quality of life for the employees. No decisions were
made, but issues would be brought to full Council.
The forums followed the agenda below:
Introduction
Employee Comments and Concerns
Council Sub-Committee Feedback
Concluding Remarks
The concerns that were raised have been divided into two categories, General and
Specific issues.
General Issues
1. Space: Facilities—Including the Town site- Town Facilities are full or
overflowing
Subcommittee Response
- Space study by Public Works input from Chief Sharp and Water Department.
- Looking at Naranja town site and Rancho Vistoso new site.
- Acreage available at existing town campus.
- Look at town's future growth/next twenty five years.
- Identify needed services and areas of future growth.
Town Policy
N/A
Actions:
Long Term
Short Term
1
2. Retirement: ASRS Changes
Contribution to be increased to 9.1%
- Currently at 7.4%.
- Increases announced for this year and next year.
Subcommittee Response
- Town joined Arizona State Retirement System (ASRS) at same time as many
other communities.
- Significant increases over last three years.
- Across the country retirement systems going through same issues.
Subcommittee Question: Is Town offering annual retirement seminars?
HR response:
- ASRS offers seminars for those preparing for retirement within two years.
- Possibly a service HR could provide.
- ICMA (Tom Axline) comes quarterly to meet with employees.
Subcommittee Question: What is available through ICMA plan—Is there a
borrowing system?
HR response:
- ICMA money market funds only available to government employees.
- No borrowing capability, early withdrawal penalties apply.
Town Policy— Personnel Policies & Procedures Code
Policy 15 Additional Benefits (P. 23)
Section 4. Employees who have met the eligibility requirements
shall participate in one of the retirement plans offered by the
Town. Uniformed Police personnel will normally participate in
the State Public Safety Retirement System (PSPRS), and Police
Dispatchers in the Corrections Officer Retirement Plan (CORP).
The primary retirement plan for all other eligible employees is the
Arizona State Retirement System (ASRS).
2
Actions:
Long Term
Short Term
3. Security: Security analysis by Police Department two years ago, what are
we doing?
Subcommittee Response
a. Campus
- Money has been budgeted to increase security at the PD.
- Need to look at entire Town Facilities security issues.
- ID cards/badges need to be used.
- Council is very appreciative of Police presence at Council Meetings.
b. Building/Locks
- Card swipe system for exterior doors.
- Significant redesign/cost issues.
- Look at "buzz" door.
- Swing gate more secure.
- All building front counters/security.
c. Lighting
- Campus lighting inadequate.
- Motion sensor lights.
Town Policy
- Badges?
- Authorized/unauthorized people?
3
Actions:
Long Term
Short Term
4. Leave Issues:
a. Annual & Sick Accrual Policies
- Convert sick to vacation.
- Reward for non-use of sick time.
- Please use sick leave when sick. People come in sick and spread to others.
- Hourly leave accrued differently by hourly and exempt employees.
- Different rate of accrual to get comp time.
- Increase vacation time for long-time employees.
b. Short Term Disability
- HR Response: Available through Colonial Insurance. After 90 days long
p g
term disability kicks in.
c. Time Donations
- Contributions to another employee's sick leave.
Subcommittee Response
- Use but don't abuse sick leave.
- Be considerate don't infect co-workers.
- Review the sick leave policy.
- Review annual leave accrual with respect to accrual rates - exempt and non-
exempt employees.
Town Policy:
After employee accrues 480+ hours next 56 hours are eligible to
convert to vacation time. It takes approximately 7 years to
accumulate 480 hours, depending on sick leave usage. Upon
leaving town employ with over 480 hours of sick leave, employee
is paid for 50% of hours over 480.
4
Actions:
Long Term
Short Term
5. Performance Evaluations: Annual Review
a. How Given
- Employee is last to see evaluation.
- No input.
- Evaluation should be tool to improve communication.
- Change evaluation form & calculations.
- Perhaps two supervisors be part of evaluation process in case immediate
supervisor leaves town employ.
b. Performance Based Metrics ***
- New methods of appraisals.
c. Bonuses
- Yearly.
- Performance based.
- Gas cards.
- "Coining" for recognition.
- Recognition at Town Council Meeting.
d. Tenure - Gifts and Recognition
- Instead of catalog gifts give check in that amount.
Subcommittee Response
- Possible issues in management system.
- "Coining" can be done at department level not just for tenure, because it can
provide immediate recognition.
Town Policy:
Current process: Supervisor writes review then goes to HR for
calculations then to manager for signature, to Town Manager for
signature, then to employee. Tenure Awards are for the 5 year
and multiples of 5 year anniversaries.
5
Actions:
Long Term
Short Term
Need to check law on "standard" cash awards
6. Pay:
a. Certification
- Link approved certificates to pay increase (.50/hour).
b. On-Call
- Pay increase to $1.50 (currently $1.00).
c. Regional Compatibility
- Employees leaving for better jobs/more money.
- Compensation should be on a par with other Towns.
d. Step Plan
- Like Police Department.
- PD brings in laterals at Step 2 —less than they are currently being paid.
e. Increase Vacation Days vs. Pay Increase
- Employees frustrated with budget.
- Working harder and harder and not getting any more money.
Subcommittee Response
- Town has two customers; 1) employees; 2) residents.
- Employees customers 1) co-workers; 2) supervisors; 3) residents.
- Town has to operate on a budget; cannot go into debt.
- Wage compatibility.
- No one is dispensable, nor is anyone indispensable.
- Value all employees.
- Oro Valley funded with no property tax compared to other jurisdictions that
may have a property tax.
- May need period of compression.
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- Need more money coming in—more shopping centers.
- Money crunch, need to educate citizens.
- Town receives funds in State shared revenue based on population of town,
(this number is census dependent and only changes after census [10 year or
five year special]). Other revenue is sales tax; as retail grows, revenue goes
up.
Town Policy— Personnel Policies & Procedures Code
Policy 12 Compensation (P. 20)
Section 1. Preparation of Plan: The Town Manager shall
ensure that a pay plan is created. In arriving at salary rates or
ranges, consideration may be given but not be limited to
prevailing rates of pay for similar work in other public or private
employment in the Tucson metropolitan area or defined labor
market, to current costs of living, to suggestions of Department
Heads, to the Town's financial condition and policies, and to
other relevant factors. The Town Manager, or the person or
agency employed for that purpose, shall thereafter make such
further studies of the pay plan as may be requested by the town
Council.
Section 2. Adoption of Plan: The pay shall be adopted and may
be amended from time to time by action of the Town Council.
Amendments and revisions shall be submitted to the town
Council through the Town Manager.
Town Policy— Personnel Policies & Procedures Code
Policy 13 Pay Adjustments (P. 21)
Section 1. Application of Rates: Employees shall be paid a
salary or wage established for that classification under the pay
plan. The minimum rate for the classification generally shall
apply to employees upon original appointment. However, the
Town Manager, when circumstances warrant, may authorize
original appointment or re-employment at other than the
minimum rate dependent upon the experience and qualifications
of the individual being hired.
Section 2. Advancement: No salary advancement shall be
made so as to exceed any maximum salary rate established in
the pay plan for the classification to which the employee's
position is allocated.
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Town Policy— Personnel Policies & Procedures Code
Policy 30 On-Call and Emergency Call-Out Pay (P. 44)
Section 1. Policy: It is the Town's policy to reward employees
with competitive salaries and benefits. In order to ensure that we
are competitive with compensation awarded to employee's who
as a condition of their employment routinely deal with various
emergency situations, the following will apply:
Section 2. On-Call Pay:
An "on-call" employee shall be defined as a non-exempt
employee who is required to be prepared to return to work during
non-regular hours. "On-call status" is synonymous with "standby
status" and requires that an established on-call practice be
developed by the Department Head and approved by the Town
Manager prior to an employee receiving compensation pursuant
to this policy. Generally, only employees who are included on
approved on-call lists maintained by the Department Head as
authorized by the Town Manager will be eligible to receive on-
call compensation during a pay period.
Employees assigned to on-call duty are paid an amount
established by administrative policy as approved annually in the
Town Budget. Time spent on on-call status does not count as
hours worked for overtime purposes; however, the pay for on-call
duty is counted as wages for the purpose of computing an
employee's regular rate of pay for overtime purposes.
In return for the receipt of on-call pay, employees serving in on-
call status agree to be ready to return to work as needed. The
location and activities of the employee remain at their own
discretion during their on-call status. They must, however,
ensure that immediate contact with them is possible at all times,
and they must be able to arrive at the work site within a
reasonable period of time (i.e., in most cases, within a period of
45 minutes, or less). The employee also agrees to remain fit for
work while on-call. "Fitness for work" requires that"on-call"
employees not be impaired by drugs or alcohol, as defined under
the terms of policy 25—Drug Free Workplace.
Actions:
Long Term
Short Term
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7. Training:
a. Tuition Reimbursement
- Employees should take advantage.
b. Cross Training
- Lack of training for new hire/new position, not enough staff to train them.
- Cross training is needed.
- Funding for training needs to be a priority.
c. Budget
- Seems like training is the first item cut.
d. Computer Training
- Need small group training for computers and software which will improve
customer service.
e. General Training
- OSHA Training needs to be cleaned up.
- Standardized training in ways the Town can protect itself.
- Need to train employees on Violence in the Workplace and Homeland
Security.
- Person leaves employment takes time to train, everyone affected.
Subcommittee Response
Town Policy— Personnel Policies & Procedures Code
Policy 21 Training Employees and Reimbursement for
Educational Expenses (P. 31)
The Town of Oro Valley is committed to the development of a
well educated and highly skilled work force. To help accomplish
this aim, the Town will provide training opportunities and
educational assistance to employees, as defined in this policy.
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Section 1 —Training
A. Responsibility for Training: The Town Council encourages
the training of employees. Training programs for
employees may be initiated by the Town Manager or
Department Heads. Such training programs may include
seminars, demonstrations, assignment of reading matter,
or such other devices as may be available for the purpose
of improving the effectiveness of their respective duties.
B. Credit for Training: Participation in and successful
completion of approved training courses may be
considered in making advancements and promotions.
Evidence of such activity shall be filed by the employee
with the Human Resources Department.
C. Budgeting of Expenses: Training courses are to be
budgeted directly by the individual departments, and are
not to be confused with educational courses covered
under the terms of Section II —"Reimbursement for
Educational Expenses," which follows.
Section II— Reimbursement for Educational Expenses
The objective of the Educational Reimbursement program is to.
encourage and assist employees in advancing their skills
through outside schooling at recognized and accredited
institutions of learning by providing reimbursement for a portion
of the associated costs.
A. Policy: The Town of Oro Valley will provide tuition
assistance benefits to help employees pay for the cost of
accredited courses which are either related to their current
job, or to other jobs which present logical career paths
within the classification system used by the Town of Oro
Valley.
B. Eligibility— Fuiltime employees who have completed their
probationary period with the Town are eligible to
participate in this program. (Only courses which
commence after the completion of the probationary period
are eligible for reimbursement.)
C. Course Criteria: The following types of courses are
reimbursable under the terms of this program:
1. Undergraduate and graduate courses offered through
colleges, universities, and technical schools which are
accredited by nationally recognized accreditation
organizations are reimbursable if approved in advance
by the employee's department head and the Human
Resources Department. The Town's decisions on the
accredited status of the institution will be final in all
cases. All courses must be "for credit"and must yield
10
letter grades (or"pass-fail" grades)within the
curriculum guidelines for the school attended.
2. Courses that are required as part of an approved
degree-related program for which the employee is
formally enrolled.
3. Courses that are not available locally or for which the
employee has a schedule conflict may be taken on a
correspondence or home study basis in special cases;
however, such courses must specifically relate to the
employee's work or to an approved degree program,
and will be considered on a case-by-case basis.
4. Employees who are interested in participating in
programs not covered by this policy, including
employer-directed programs, accelerated degree
programs, or programs held during regular working
hours, should speak to their Department Head or the
Human Resources Director to determine if additional
consideration of the course or program is possible.
D. Reimbursement Basis:
1. Students will be eligible for reimbursement for 75% of
the cost of registration fees, tuition, required lab fees,
and required textbooks. (Other special fees are the
responsibility of the student,and are not reimbursable
under this policy.) Appropriate documentation of the
"required" nature of covered fees must be provided, as
required.
2. Regardless of the school attended, reimbursement will
be limited to the lesser of: (1) the actual costs, or(2)
the equivalent costs for a similar course load (i.e.,
number of credit hours) if taken at the University of
Arizona.
3. Students are eligible for reimbursement for a
maximum of two courses per academic term (as
determined by the institution attended).
4. A grade of"C" (or its numerical equivalent), or better
must be attained in order to receive reimbursement.
No reimbursement will be received for grades of
"incomplete,"or for withdrawals (unless requested by
the Town of Oro Valley for bona fide work-related
situations). Generally, "Pass/Fail" grades are only
acceptable if the course is part of an approved degree
program for the student, and the"Pass/Fail"will apply
tot he graduation requirement.
11
E. Other Requirements:
1. All courses must be pre-approved by the Town of Oro
Valley prior to commencement of the course.
Employees are advised that they should not register
for the course until the appropriate approvals are
obtained. (Contact the Human Resources Department
for the necessary forms and current procedures).
2. The student must be an eligible employee of the Town
of Oro Valley at the time of completion of the course,
in order to receive the reimbursement.
3. Employees are expected to attend courses on their
own time, unless directed by the Town of Oro Valley to
do otherwise. (All such situations require the advance
approval of the Town Manager prior to registration.)
4. Reimbursement under this policy may result in taxable
income to the employee pursuant to Federal and/or
State regulations. The Town of Oro Valley will comply
with all Federal, State and local tax laws.
5. The amount of the reimbursement for courses taken
may be offset by amounts received from other forms of
financial aid, such as scholarships, etc.
Actions:
Long Term
Short Term
8. Facility/Overuse:
a. Citizen/Employee/Service
- Deterioration of current parks due to overuse.
- Lack of staff and equipment.
- How can employees help?
b. Stress/Quality/Customer Service/Cost
- Not able to keep ahead of the maintenance.
- Naranja Town Site when up and running will help with overuse situation.
- Overuse exists throughout the entire area, not just Oro Valley.
- People still use the fields when we post signs not to use them.
12
- Park staff are proposing that we fence off the fields this year to allow
Bermuda Grass to grow.
Subcommittee Response
- Naranja Site initial start up estimate is $50 million. That cost may not be
possible without a property tax to pay for it. We can only go to the voters for
that kind of increase in a May election. If the Council approves this, it could
be a goal for the May 2007 election. If the Naranja Town Site was started
tomorrow, it would not be completed for 2 to 3 years and we have to address
whether the existing facilities can support that time frame.
- Are the current facilities so overwhelmed that we need to rotate usage?
- Property tax would be secondary tax that is sight specific and time finite. It
would be cheaper to get all the money at one time and then use it in phases.
- Operation and Maintenance costs could be paid for by sales tax rather than a
new tax.
- We need to try to make residents aware of the needs of the community,
including how quickly we are wearing out our parks.
- May need to rotate use of parks. The public has to see and be aware of these
issues.
- Employees can help by conveying existing policies and communicating them
to the public.
- Citizens need to prioritize what they need and want. This will be a major
educational thrust on the part of Council.
Town Policy
N/A
Actions:
Long Term
Short Term
9. Annexation: Resources in place
- Will affect PD recruiting efforts. We are not getting recruits and lose about
half of new hires.
- Looking at annexations all the PD sees is greater call numbers.
13
Subcommittee Response
- Comments are not unique to the Police Department.
- Concerns with Homeland Security and competition in Southwest area.
- Expect to see within next six months an "X"number of officers per 1,000
people.
- To provide level of service our residents want we need to ask them how they
will help us pay for them. Employees have helped by doing their jobs and
doing extra.
- Town limits may eventually be Ina Road, Shannon Road, and the Pinal
County line.
- Foothills Mall will look at roads and crime among other things.
- We will use Council Member Parish as resource due to his familiarity with
that area.
- Town will go north sooner as that is financially better for the Town.
- Need to ask if financial studies are realistic. Need feedback from Police
Department.
- Annexation up to Magee did well due to Police effort.
- We are looking at annexations very carefully.
Town Policy
N/A
Actions:
Long Term
Short Term
10. Health Benefits:
- Last year's Cost of Living Adjustment was less than the increase in medical
insurance costs.
HR Response:
- Health care costs continue to grow annually.
Subcommittee Response
14
Town Policy
Currently, the Town contributes 100% of the monthly premium,
of the lowest of the two options, for the"employee only"
coverage for employees who are regularly scheduled to work 30
hours (or more) per week. The Town also contributes 75% of
the additional monthly premium cost for dependent coverage.
Current Aetna HMO plan: Employee pays $10.00 co-pay for
basic medical services
Current Aetna QPOS plan: Employee pays$15.00 co-pay for
basic medical services
2005 Cost of Living Adjustment 2.3% (7/1/05)
2005 increase in medical insurance costs is 7%
Actions:
Long Term
Short Term
Specific Issues
1. State Retirement
Subcommittee Response
Town Policy
The Arizona State Retirement System, created in 1953, is a state
agency providing retirement benefits, long-term disability benefits
and other benefits to employees of the state, counties,
municipalities, universities and community colleges, school districts
and other political entities.
In 1970, the state Legislature authorized the creation of a defined
benefit plan. Today, eligible members share equally in
contributions to the plan with their employers and, upon retirement,
receive a life-long pension.
15
Actions:
Long Term
Short Term
2. Education of Retirement System and Preparing for Retirement
Subcommittee Response
- Need to continuously prepare for retirement.
Early preparatory education
Town Policy
Actions:
Long Term
Short Term
3. Dental Plan
- Look at different dental plan or raise the plan maximum for out of pocket
expenses.
Subcommittee Response
- None
Town Policy
Currently, the Town contributes 100% of the monthly premium,
for the"employee only" coverage for employees who are
regularly scheduled to work 30 hours (or more) per week. The
Town also contributes 75% of the additional monthly premium
cost for dependent coverage.
16
MetLife utilizes a network of participating dentists and within that
network, covers preventive procedures at 100%; basic
procedures at 80%; major procedures at 50% and orthodontia at
50%; see plan for details on coverage. Employees can go to
dentists outside the network, incurring a larger percentage of the
costs. You are encouraged to read and familiarize yourself with
the MetLife materials which are provided.
Actions:
Long Term
Short Term
4. Matching Salaries
- Eight hour work day including lunch.
Subcommittee Response
- Compete with surrounding communities.
Town Policy
- Public sector consulting firm completed salary comparison
study of every position in the Town on 8/2003. Over 100
employees were interviewed during this process.
- Ongoing department specific salary comparisons
Actions:
Long Term
Short Term
17
5. Permits/Licenses: Charge for services and increase fees to match costs or
those of surrounding communities
- Fee schedule vs. Pima County.
- P&Z Plans Examiners review plans at no charge.
- Council will look at fee increases
Subcommittee Response
Town Policy
- Resolution No. (R) 03-44: P&Z Fee Schedule
Ordinance (0)03-19: Development Services Fees
- Resolution (R)02-21: Uniform Admin Building Codes Fee
Schedule
- Miscellaneous Fees etc.
- Reference budget adopted July 1, 2005
Actions:
Long Term
Short Term
6. Turnover of Employees
- Does the Council realize what we lost (in employee expertise) last year?
- Experiencing growing pains and staff needs more help.
- PD recruiting division will do whatever it takes to help bring in new recruits.
Two out often usually make it through recruiting process.
Subcommittee Response
Town Policy
N/A
18
Actions:
Long Term
Short Term
7. Internet Access (Remote Access)
- Internet- make available after work/via intranet.
- Remote access from home for e-mails, etc.
Subcommittee Response
- Intranet access clarification.
Town Policy
- Internet access/Town e-mail is currently available.
- Intranet access off-site is possible (requires extensive
configuration)
Actions:
Long Term
Short Term
8. Paving Lot at Calle Concordia
- Driving area creates dust, health problems, bikes can't use, creation of big
puddles during monsoon.
Subcommittee Response
Town Policy
N/A
19
� r
Actions:
Long Term
Short Term
9. Employee and Volunteer Parties
- Are they equal, equitable?, should they be combined?
Subcommittee Response
Town Policy
Actions:
Long Term
Short Term
General Employee Comments
- Forums have new time frames—changing to meet needs of employee.
- Work on communication—not enough.
- Appreciate Councils' efforts.
- Likes job.
- Staff able to come because of meeting held at different times.
- Conversational tone made discussion easier.
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General Council Comments
- Personnel policies and processes may have not caught up with growth.
- Create employee subcommittee to bring policies up to 21st century.
- Look at more opportunities for employee recognition.
- Need to educate the public regarding staff needs and ask for money to pay for
them.
- We have worked everybody very hard and stretched resources as far as we
can. The challenge in the upcoming budget and next several years is to build
up resources to support our growth and staff.
- State-shared revenues are based on population numbers. Oro Valley has
grown about 10,000 people every five years. We should see a change in
revenue in 2006 based on population change.
- The Town is forced by law to only spend what it takes in.
- Work in Government, big thing is sound economic future.
- We are a growing community but want to retain character of small town
community.
- Our goal is to see the Council future enhance theees.ublic's need of employees.
p p Y
We need to get the employees' message out there.
Subcommittee Questions and Plan for this meeting results
- Have forums more often?
- Is the change in the Annual Employee Forum a positive change?
- Subcommittee would appreciate feedback/suggestions on the format of this
forum.
- Will look at all the notes from all four meetings.
- Will make recommendations and address issues with the whole Council and
Department Heads by report. This will be distributed to all employees.
- Council will decide if any issues require immediate change, a budget issue, or
additional discussion is required.
- The Subcommittee will meet the week of March 13th to pull information
together.
Closing Statements
- Oro Valley has the best employees yees In the state.
- They provide service that is second to none.
- Thanks to the employees.
- Brag about employees.
- Thank you for the opportunity to hear your concerns.
21
Thanked staff and said it was very easy to be the Mayor of Oro Valley, and to
be a cheer leader for the Town.
- The major element of the Town is the excellent people on staff here.
We are all on the same side.
We are working together to find a solution.
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2
MEMORANDUM
DATE: May 12, 2006
TO: Honorable Mayor and Council
FROM: Chuck Sweet, Town Manager
David Andrews, Assistant Town Manager
Stacey Lemos, Finance Director
RE: Follow-up Issues from May 8th and May 10th Budget Review Session
A number of issues were raised during the Mayor and Council's Budget Review Session
on May 8th and May 10th. This memorandum serves as staff follow-up to these issues.
May 8th Meeting:
1) Issue: Add salary market adjustments for management staff and department
heads reporting to Council to budget.
Response: The salary market adjustments will be added to the tentative
budget submitted for Council approval in June. A running total of cumulative
budget adjustments has been prepared to track these items.
2) Issue: No increase in health care premiums from Aetna for FY 2006/07.
Response: The cost savings in this area is being tracked on the cumulative
budget adjustments worksheet.
3) Issue: Request for historical collections in Police Seizures & Forfeitures
funds.
Response: Attached please find a chart showing the past five (5) year
history of Police Seizures & Forfeitures collections.
4) Issue: Request for list showing what is included in the $252,000 Legal
Department Other Professional Services requested budget
Response: Attached please find a response from the Town Attorney,
Melinda Garrahan.
5) Issue: Request for information on Arizona Municipal Risk Retention Pool
(AMRRP) liability insurance deductibles and coverage limits and Pool
coverage of legal expenses.
Response: The Legal Department will compile this information and report
back to Council at the May 25th Budget Work Session.
6) Issue: Projections for FY 2006/07 on Planning and Zoning performance
metrics
Response: Finance will work with Planning and Zoning to explore the
feasibility of expanding the graphs prior to printing of the final budget.
7) Issue Storage cabinets for Building Safety to store and file construction plans
Response: Building Safety has a need for 5 cabinets resulting in an
expenditure of approximately $18,200. This amount has been added to the
cumulative budget adjustments worksheet.
8) Issue: Annualize the performance metrics graphs in Building Safety to reflect
a 5 year history
Response: Finance will work with Building Safety to revise the graphs prior
to printing of the final budget.
9) Issue: A plan to study the transition of Library operations to Pima County
and potential funding to assist in the transition
Response: Finance will work with Community Development staff and report
back to Council once information is available.
10) Issue: Amphitheater School District has increased their lease rate to Parks
and Recreation to achieve full cost recovery of the District's energy fees
Response: $21,000 has been added to the Lease line item in the Parks and
Recreation budget, bringing the total to $72,900.
11) Issue: Review Amphitheater School District's utility records and determine
the cost of using Amphi versus what Parks & Rec is saving by using Amphi as
opposed to another facility
Response: Town staff will verify the energy calculation with the Amphi
school district. Additionally, in FY 2006/07 staff will look at alternative sites
and facilities to host our recreation programs and explore increasing our
program fees while also focusing on the cost/benefit of using Amphi school
facilities.
12) Issue: The $IM in Pima County bond proceeds in Honeybee Village
Acquisition Fund will not be paid directly to the Town
Response: The amount of budgeted bond proceeds has been reduced from
$1M to $100,000 to allow some budget capacity to spend any remaining bond
funds that may be turned over to the Town for this project.
13) Issue: Rename Honeybee Village Acquisition Fund
Response: Fund will be renamed to "Honeybee Village Development Fund"
14) Issue: Estimate on additional Tohono O'dham grant funds for Honeybee
Village Development Fund
Response: An amount of$500,000 will be added to the fund to allow for the
second cycle of Tohono O'dham grant funds in FY 06/07.
Stacey Lemos
Finance Director
t.,etil?,ty
David Andrews
Assistant Town Manager
wit AL A Aar.-
Chuck Sweet
Town Manager
cc: All Department Heads
Bob Kovitz, Govt/Community Relations Admin.
5 Year Seizure & Forfeitures Revenue History
Adopted +.
Budget Actual /
9
Seizures & Forfeitures -State Fund
FY 2001/02 $ 5,000 i $ 31,826 $ 26,826
FY 2002/03 { 5,000 i 28,907 23,907
FY 2003/0410,000 77,455 I 67,455
.FY 2004/05 ��..15 000 12,268 2 732
( )
FY 2005/06 YTD 10,000 I 4,092 (5,908)1
Seizures & Forfeitures -Justice Fund
FY 2001/02 $ 45,000 f $ 82,726 $ 37,726 t
FY 2002/03 65,000 57,947. 1 -- (7,053)]
{ FY 2003/04 40,000 ? 17E,026 13E,026
FY 2004/05 I 50,000 # 111,304 { 61,304
FY 2005/06 YTD 110,000 160,264 i 50,264
G:\BUDGET\FY 06-07\Research Reqests\Seizures and Forfeitures History
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AIDED
Office of the Town Attorney
MEMORANDUM
To: Mayor and Council
From: Melinda Garrahan, Town Attorney
Copy: Chuck Sweet, Town Manager; David Andrews, Assistant Town Manager;
Stacey Lemos, Finance Director
Date: May 10, 2006
Re: Legal Department Budget Follow-up Regarding Outside Professional Services
Attached are copies of the budget detail page and the budget justification submitted to the Town
Manager concerning outside professional services. They help explain the variety of things that
are included in this budget item such as title reports under"expert services".
The justification also goes into the problem I discussed at the May 8 budget session. It is very
difficult to anticipate what amount may be needed in the coming fiscal year approximately five
months ahead. As you can see, it now appears that two cases specifically noted will not require
outside counsel. We are handling the Reflections at the Buttes enforcement action in-house and
will settle Logan's crossing by purchasing the easement.
On the other hand, Steam Pump Ranch could involve two eminent domain cases, each running
an estimated $70,000. The Pager Pay mini-trial this fiscal year may result in another, larger trial
or a series of mini-trials next fiscal year at an estimated $40,000 with an appeal after that (or an
interlocutory appeal after the upcoming mini-trial) that will run an estimated $20,000. Then
there are the matters that will come up next fiscal year that we don't even know about at this
time.
My concern is not with the specific amount of my budget estimate or the Town Manager's
recommendation. Rather it is that Council and the Administration are aware of the potential
worst-case scenario.
F:\Legal Dept\Budget and Planning\Budget 2006-2007\051006 MM-outside prof.services.doc
JUSTIFICATION REGARDING THE AMOUNT REQUESTED FOR
OUTSIDE PROFESSIONAL SERVICES
Outside professional services encompasses much more than the title implies. It
includes: the cost of outside legal counsel in litigation matters not covered at all by
AMIZRP defense; the cost of outside counsel for conflict matters and litigation once we
are beyond AMRRP coverage; ancillary litigation costs associated with litigation such as
service of process and court reporting; major copy projects in response to production of
document requests that are beyond the in-house staff/copier capacity; Prosecution
Division mediation program and specialized software support and maintenance; payment
of that portion of the civil law clerk's hourly salary that is not covered by the UofA law
school; and DPS fees for background checks for Prosecution Division personnel.
Essentially, outside professional services includes many items not otherwise provided for
elsewhere in our budget.
For the 2005-2006 fiscal year, Tobin Sidles recommended that this item be
budgeted at $150,000. In the Town Manager's review that amount was reduced to
$100,000. The Finance Department has set the estimated actual amount at the end of the
2005-2006 fiscal year to be $152,000 based on current information, which includes the
estimated litigation budget for the Pager Pay case. (Note that we will be working with
the Finance Department to bring before Council a proposed budget adjustment reflecting
the situation.)
The fact is that it is extremely difficult to estimate the appropriate budget amount
in this category no matter who is doing the estimating. For example: The SOVOG
referendum procedure case was not anticipated in 2005-2006, resulting in additional
litigation. The Legal Department also had to hire temporary staff from an agency to
cover the transfer of an employee to another department. We did anticipate that the Pager
Pay case could be resolved through motion practice rather than trial, but that turned out
not to be the case when the litigation was reassigned a second time and the new judge
decided differently.
For 2006-2007 we are requesting $252,000 for this budget item, with the caveat
that the proposed amount may be underestimated. Among the matters that may result in
significant expenditures from this fund are:
• the Pager Pay case which will continue, perhaps with an additional trial or
interlocutory appeal;
• possible eminent domain litigation if agreement cannot be reached on the
acquisition of Steam Pump Ranch;
• an enforcement action against Reflection at the Buttes; and
• acquisition of the Logan's Crossing multi-use trail through an eminent domain
action.
7
TOWN OF ORO VALLEY
SUPPLEMENTARY DETAIL
FISCAL YEAR 2006-2007 BUDGETED EXPENDITURES
LEGAL
OPERATIONS AND MAINTENANCE
CURRENT YEAR BUDGET YEAR
6/30/2006 2006/2007
Description Year End
Department
2005/2006 Estimated Budget
Budget Actuals Request
Outside Professional Services
$ 100,000 744 ::_
Outside Legal Counsel and other Professional Services
(Expert Services) 215,500-
.
25
(Our Town Mediation) ,000
(Handwriting Analysis) 5,000
(Process Service) 2,000
(Criminal Expert Witness) 2,000
2,500.
Total $ 100,000 $ - $ 252,000
EquipmMen $ 2,500 P'3 _' A`
Includesent LeaseRepair of&Kyocera aintCSance-8030 Copler at$378/mo.(see
Copier Justification sheet) 4,536
�n Copier Maintenance Agreement
1....,.:ellaneous repairs for aging equipment 360
Prosecutor Dialogue Maintenance 1,500
2,178
Total $ 2,500 $ - $ 8,574
Telecommunications
1 $ 2 500 k-::��������'t �y�{, h���� $
$
own Attorney&Chief Civil Deputy-Treo 700w(linked to same system)
New Civil Attorney-Own personal cell phone 3,648
own Prosecutor-Own personal cell phone $ 575
ssistant Town Prosecutor-Own personal cell phone $ 575_
$ 575
Total $ 2,500 $ - $ 5,373
Postage $ 2,5001
,t:3;2:- =i = �,; -if $ 3,000
Ir -Ise in personnel from 6 to 10 people
Legal spread sheet 030106 0&M
3/3/2006
1
TOWN OF ORO VALLEY
FY 2006/07 BUDGET
Council Line Item Changes
Through May 10, 2006
Department/Division Line Item Increase/(Decrease)
GENERAL FUND:
Recurring:
Town Council 2.3% Cost of Living Adjustment $ 1,623
Various Departments Department Heads Salary Market Adjustments 47,451
Various Departments No Rate Increase in Health Care Benefits (212,450)
Subtotal Recurring $ (163,376)
Non-Recurring:
Building Safety Fireproof storage cabinets $ 18,200
Parks & Recreation Increase lease expense for Amphi facilities 21,000
Library Reduced LSTA grant (11,800)
Subtotal Non-Recurring $ 27,400
Total Council Adjustments $ (135,976)
Contingency Per Manager's Recommended $ 10,387,146
Total Council Adjustments 135,976
Contingency Per Tentative Budget $ 10,523,122
HIGHWAY FUND
Recurring:
Department Heads Salary Market Adjustments $ 16,025
No Rate Increase in Health Care Benefits (36,093)
Total Council Adjustments $ (20,068)
Contingency Per Manager's Recommended $ 2,872,307
Total Council Adjustments 20,068
_Contingency Per Tentative Budget $ 2,892,375
PUBLIC TRANSPORTATION''.
Recurring:
No Rate Increase in Health Care Benefits $ (5,487)
Total Council Adjustments $ (5,487)
WATER UTILITY
Recurring:
No Rate Increase in Health Care Benefits $ (31,772)
Total Council Adjustments $ (31,772)
Contingency Per Manager's Recommended $ 1,915,523
Total Council Adjustments 31,772
Contingency Per Tentative Budget $ 1,947,295
G:\BUDGETIFY 06-07\Council Line Item Changes
r �
Department/Division Line Item I Increase/(Decrease)
STORMWATER UTILITY
Recurring:
No Rate Increase in Health Care Benefits $ (605)
Total Council Adjustments $ (605)
[SPECIAL REVENUE FUNDS
Non-Recurring:
Honeybee Village Pima County bond proceeds reduction $ (900,000)
Honeybee Village 2nd cycle of grant funding from Tohono O'dham $ 500,000
Total Council Adjustments _ _ $ (400,000)
G:\BUDGETIFY 06-07\Council Line Item Changes
4
DPW BUDGET INTRODUCTION
Brief discussion of each fund:
1. Highway Fund—Highway User Revenue Funds
• Transfer of 6.5 staff members from the TWIF to the highway fund
• $2.5 million in street improvements
• Funding for the Operation Division
• Funding for the Engineering Division
• In kind contribution of staff salaries on Road Improvement Projects
• Eliminated one Engineering Tech Position
2. Townwide Roadway Impact Fee Fund—Impact Fees from Residential Development
• Transfer of 6.5 staff members from the TWIF to the highway fund
• Funding for the First Avenue project
• Funding for the design of the La Canada Widening Project
• Funding for the CDO Linear Park
• Funding for the pedestrian bridge for ADOT's Oracle Road Project
3. Custodial/Facilities Maintenance—General Fund
• Provides for the building maintenance for all Town Buildings
• Maintenance provided by staff and outside professional services
• Requested a crew leader for this fund
4. Development Review Division—General Fund
• Very heavy work load
• Request for the Senior Engineer position, increase in review and grading permit
fees can fund this position
5. Stormwater Utility Fund—General Fund and Pima County FCD Funds
• Design and build 3 drainage projects
• Propose Stormwater fee
6. Public Transportation Fund—General Fund, Federal Grants and LTAF funds
• 2 new vans, 1 from LTAF funds and 1 from FTA Funds
• Fare box increase
• LTAF TI funds are questionable in the future
7. Municipal Operations Center
• $1,000,000 left in bond funds for this project
DEPARTMENT OF PUBLIC WORKS
GOALS FOR FY 06/07
1. Prioritize projects to deliver the most needed or important projects.
2. Begin a personnel transition plan from road construction to operations and maintenance.
3. Complete the pavement management concept
4. Work with Council to develop a Storm Water utility fee
5. Coyote Run
No RTA
• Maintain an increase in ridership
• Increase revenue
• Replace vans
• Expand training opportunities
RTA Passes
• Begin circulator
• Form an advisory committee
• Expand Suntran bus service
6. Development Division,revise review and permit fees
7. Retain Quality personnel and develop a succession plan
Items that need to be added to the budget:
• Magee Road
• Lighted street signs on Oracle
• Patch truck