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HomeMy WebLinkAboutPackets - Council Packets (1493) AGENDA ORO VALLEY TOWN COUNCIL SPECIAL SESSION AND STUDY SESSION JULY 10, 2000 ORO VALLEY TOWN COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE SPECIAL SESSION CALL TO ORDER — AT OR AFTER 7:00 PM ROLL CALL 1. RESOLUTION NO. (R)00-73 A RESOLUTION OF THE TOWN OF ORO VALLEY AMENDING RESOLUTION NO. (R)00-49 (CONSENTING TO THE PROSPECTIVE INCORPORATION OF THE VILLAGE OF CASAS ADOBES) BY REMOVING THE CONDITION THAT JUDGMENT BE ENTERED WITHIN 15 DAYS OF THE ADOPTION OF RESOLUTION NO. (R)0O.-49 ADJOURNMENT STUDY SESSION CALL TO ORDER — AT OR AFTER 7:00 PM ROLL CALL 1. REVIEW AND DISCUSSION OF LONG TERM DEBT FINANCING — 2000/01 FISCAL YEAR 2. REVIEW AND DISCUSSION OF 2000/01 FISCAL YEAR BUDGET ADJOURNMENT 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: 07/07/00 4:30 p.m. LH 1 TOWN OF ORO VALLEY STUDY SESSION PAGE 1 OF 1 COUNCIL COMMUNICATION MEETING DATE: 07/10/2000 TO: HONORABLE MAYOR AND COUNCIL FROM: Dan L. Dudley, Town Attorney SUBJECT: Resolution No. (R) 00- 73; Amending Resolution No. (R) 00-49 relating to municipal incorporation pursuant to ARS § 9-101.01(B)(1), consenting with conditions to an attempt to incorporate the "Village of Casas Adobes" during the year 2000, and declaring an emergency to exist. BACKGROUND: On May 31, 2000, this Mayor and Council adopted Oro Valley Resolution No. (R) 00-49 consenting to the incorporation of the "Village of Casas Adobes" on a prospective basis as long as the incorporation was completed by December 31, 2000, and included the same territory as approved by Pima County in the failed 1999 attempt to incorporate the Village of Casas Adobes. One of the conditions in the Oro Valley Resolution No. (R) 00-49 required that before Oro Valley's consent to the incorporation was effective, that the Court must enter judgment within fifteen (15) days of the adoption of our Resolution No. (R) 00-49. The proposed amendment would remove that time constraint and require that the Casas Adobes parties to Pima County Cause No. 320926 not seek modification, clarification, or reconsideration of the judgment. RECOMMENDATIONS: If the Mayor and Council desires to permit Casas Adobes' efforts to incorporate during the year 2000 to go forward, then the Council should adopt this Resolution. SUGGESTED MOTION: I move to adopt Resolution No. (R) 00-73 amending Resolution No. (R) 00-49. ATTACHMENT: Resolution No. (R) 00- 73. 'CI ). , // //‘ ' Signature of Town At : ,ey Cit/i4,4 % 4 'ell Signature of Town Manager RESOLUTION NO. (R) 00 - 73 RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AMENDING RESOLUTION NO. (R) 00-49, RELATING TO MUNICIPAL INCORPORATION PURSUANT TO ARIZONA REVISED STATUTES § 9-101.01(B)(1), AND CONSENTING WITH CONDITIONS TO AN ATTEMPT BY THE CASAS ADOBES INCORPORATION COMMITTEE, A POLITICAL COMMITTEE REGISTERED WITH THE PIMA COUNTY DIVISION OF ELECTIONS ON APRIL 18, 2000 (ID# 025-2000), TO MUNICIPALLY INCORPORATE THE "VILLAGE OF CASAS ADOBES" DURING THE YEAR 2000, IN CONFORMITY WITH THE PROVISIONS OF A.RS. §§ 9-101 AND 9-101.01; AND DECLARING AN EMERGENCY. WHEREAS, one May 31, 2000, the Town Oro Valley adopted Resolution No. (R) 00-49 consenting to an attempt by the Casas Adobes Incorporation Committee to municipally incorporate the"Village of Casas Adobes" during the year 2000, contingent upon compliance with the conditions set forth in that resolution; and WHEREAS, subsection one (1) (E) of that resolution imposed a condition that a signed entry of judgment must be entered in Pima County Case No. 320926 within fifteen (15) days of the enactment of the resolution. WHEREAS, a judgment has not yet been entered in Pima County Cause No. 320926; and WHEREAS, the Mayor and Council of the Town of Oro Valley desire to remove that condition that the judgment be entered within fifteen (15) days of enactment of Oro Valley Resolution No. (R) 00-49. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, as follows: SECTION 1. Section one (1) (E), of Oro Valley Resolution No. (R) 00-49, is amended by striking that section and inserting in lieu thereof the following: E. The Casas Adobes parties shall not in any manner object to, seek modifications of, or reconsider the Court's Judgment Entry in Pima County Superior Court Cause No. 320926, which is anticipated to be entered on or before August 1, 2000. AMIDd Casas Adobes(4) Office of the Oro Valley Town Attorney 7.7.2000 SECTION 2. Except for the specific amendment set forth in Section 1 above, the Mayor and Council hereby ratify and reaffirm in all respects Resolution No. (R) 00-49 and the specific provisions, restrictions and conditions thereof. SECTION 3. It is necessary for the preservation of the peace, health and safety of the Town of Oro Valley that this resolution become immediately effective, an emergency is hereby declared to exist and this resolution shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona this 10 day of JULY , 2000. TOWN OF ORO VALLEY ATTEST: Paul H. Loomis, Mayor Kathryn E. Cuvelier, Town Clerk APPROVED AS TO FORM: Ali APc;1"-- Dan L. Dudley, Town Attorney AMDd Casas Adobes(4) Office of the Oro Valley Town Attorney 7.7.2000 JULY 10TH STUDY SESSION ITEMS TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 10, 2000 TO: HONORABLE MAYOR& COUNCIL FROM: David L. Andrews, Finance Director SUBJECT: Overview and Discussion of Town Long-Term Debt Financing Efforts for FY 2000-2001 SUMMARY: During the course of the Town Council's budget review sessions, it was indicated to the Council that staff would be recommending the financing of several significant projects with long term debt financing. The purpose of this study session item is to provide an overview of the status of these projects with respect to financing and answer any questions the Council may have. The Projects The following projects are recommended to be funded via long term debt financing: Description Project Cost Debt Repayment Source Water System Improvements-Expansion $5,808,750 Water Impact Fees Naranja State Land Acquisition $3,125,000 Sales & Excise Taxes Library Construction (15,000 sq. ft.) $2,000,000 Sales & Excise Taxes Water System—Existing System Upgrades $5,466,250 Water Rates Water Rights Acquisition $1,000,000 Water Rates Subtotal $17,400,000 Combination Contingent Items: Library— 10,000 sq. ft. shell $862,000 Sales & Excise Taxes Legal/Court/Admin. Building Expansion $574,000 Sales & Excise Taxes Library—Related site improvements $264,200 Sales & Excise Taxes Subtotal— Contingent Items $1,700,200 Sales & Excise Taxes Grand Total $19,100,200 Combination The cost figures indicated are for project costs only and do not include costs of issuance, underwriting fees or reserve funds. Due to the timing of needs for funding and the ability to save issuance costs, staff is proposing that the projects be financed by two debt issuances. The first issue would include water system expansion improvements to be repaid by water impact fees. Council considered this item at its July 5 meeting and gave staff the authorization to proceed with the issuance process. Staff will return to Council in August for final approval of legal documents and the sale of bonds. TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 2 OF 2 The second issue would combine the land, library, water system upgrades and water rights acquisition into a single bond issue. Based on the state land auction in December and beginning of library construction in late November/early December, this combination is feasible. Bonds would be sold in December, soon after the state land auction. All, of course, depending on Council approval. The method of sale proposed for each issue is a negotiated sale through the underwriter, Peacock, Hislop, Staley & Given. Gust Rosenfeld would serve as bond Counsel. A trustee would act on behalf of the Town to purchase the projects and lease them back to the Town over the length of the payback period on the debt (20 years). ATTACHMENTS: 1. Cost Detail for the Proposed Projects SUGGESTED MOTION: N/A Zectrif," David L. Andrews Finance Director 0/74141 Chuck Swee Town Manager Oro Valley Water Utility 3-Year Capital Improvements Plan Prepared: June 5, 2000 3-YEAR EXPANSION RELATED IMPROVEMENTS Project No. i Project Name Zone 1 Category 1 Total ($) Wells 1 i New Well I E Expansion 437,500 Sub-Total $437,500 Reservoirs 2 WP#4 0.6 MG Reservoir D Expansion 525,000 r 1 Sub-Total $525,000 Boosters 3 WP #1 D Zone Booster D Expansion 343,750 I 1 4 WP #4 Booster F Expansion 343,750 1 5 WP #14 H Zone Booster H Expansion 343 750 P , 6 WP #14 I Zone Booster I Expansion 343,750 Sub-Total _ $1,375,000 Mains 7 12-inch Steampump C Expansion 127,500 8 16-inch South C Zone C Expansion 1,113,750 9 12-inch Steampump D Expansion 72,500 10 12-inch Oracle Crossing D Expansion 156,250 11 12-inch CDO Wash Crossing D Expansion 125,000 12 12-inch CDO to WP#1 D Expansion 200,000 . 13 16-inch WP#1 to WP#4 D Expansion 398,750 14 12-inch El Con Main D Expansion 340,000 15 12-inch Well Feed E Expansion 167,500 16 16-inch Oracle Main (20%) F Expansion 300,000 17 12-inch Moore Road Interconnect F Expansion 470,000 Sub-Total $3,471,250 TOTAL $5,808,750 C:\WINDOWS.000\TEMP\expansion table.doc Town of Oro Valley General Administration Supplemental Detail FY 2000/2001 Estimated Actual FY 2000/2001 6/30/2000 Request TOV 25th Anniversary Commemoration $ 5,900 $ - Land Estimated Price $ 3,000,000 $ - AZ State Land Dept. Admin. Fees 75,000 - Professional Services (Surveys, Appraisals, etc.) 50,000 - Total $ 3,125,000 $ - Improvements Townwide Campus Improvements $ 115,489 $ - Expansion of Legal Services/Court Bldg. - 274,000 Administration Building Expansion - 300,000 Total $ 115,489 $ 574,000 Machinery and Equipment IS Administrator Laptop Computer $ 2,152 $ - Hub Town Hall Network 1 ,140 - Microsoft Office 2000 License Agreements 8,400 - Y2K Voice Mail Upgrade 5,826 - Computer Upgrades 160 - Townwide Telephone System 250,000 - Ergonomic Seating Council Chambers - 15,000 Total $ 267,678 $ 15,000 Vehicles Town Wide Pool Car $ 17,080 $ - TOWN OF ORO VALLEY COMMUNITY DEVELOPMENT DEPARTMENT LIBRARY CONSTRUCTION FUND FISCAL YEAR 2000-2001 BUDGETED EXPENDITURES D ETAI L CURRENT YEAR BUDGET YEAR 1999-2000 ESTIMATED DEPARTMENT j MANAGER 2000-2001 COUNCIL DESCRIPTION BUDGET ACTUAL REQUEST REVIEW APPROVAL Site Analysis&Prenuirtunary Design S 144,000 I S 144.000 I S 100,000 I S 100.000 I S - Library Collections _ - 1,150,000 I 1,250,000 1 Computers,Telecommunications 150,000 150.000 Interior Furnishings ( - - I 300.000 I 300.000 Construction 2.056.0001 2.056.0001 T Costs of Issuance - I - 100,000 I SUBTOTAL:EXPENDITURES - 144,000 I 144,000 I 3,756.000 I 3,956,000 I - T OTHER FINANCING USES: 1 Transfer to GeneralFund(Reimbursement) - 141000 I . 1 t i ' CONTINGENCY/RESERVE: 4,000,000 I ' - 1 TOTAL EXPENDITURES ( S 4,144,000( S 144,000 I S 3,756.000 5 4,100.000,$ An.; Oro Valley Water Utility 1-Year Capital Improvements Plan Prepared: June 5, 2000 1-YEAR EXISTING SYSTEM IMPROVEMENTS TO BE FINANCED BY SALE OF BONDS Project No. _ Project Name Zone Category 1 Total ($) Wells 1 RV Well #2 Replacement E Upgrades 437,500 2 RV Well #3 Replacement E Upgrades 437,500 Subtotal $ 875,000 Reservoirs 3 Countryside 0.8 MG CS Upgrades i 700,000 4 WP #13 1.0 MG F Upgrades 1,625,000 5 WP #14 0.8 MG G Upgrades 1,300,000 Subtotal $ 3,625,000 Mains 6 16" Main Extension WP#13 F Upgrades 412,500 7 16" Mian From RV to WP#14 G Upgrades 343,750 8 Wells 2 & 3 12" Interconnects E Upgrades 210,000 Subtotal _ $ 966,250 TOTAL $ 5,466,250 May 31. 2000 Oro Valley Public Library 9922.000 2.1 Budget Analysis: Phase I Site Analysis Schematic Design March 2. 2000 May 16. 2000 Construction S 1,800,000 S2.110.572 Furniture iture 5300.000 S300.000 Solids & Geotechnical 520,000 S20.000 Architectural Fees 5144.000 5144.000 Library Materials S 1.250.000 S 1.250.000 Public Art 518.000 S18.000 Contingency Fee S380.000 S380,000 Technoloey'Computers 580,00 580,000 53,992,000 S4,302,572 Phase I & II(shell) Construction/Phase I S1,800,000 S2,110,572 Construction/Phase II shell 5800,000 S615,198 Furniture 5300.000 5300.000 Solids & Geotechnical 520.000 520,000 Architectural Fees 5196,000 5196.000 Library Materials 51,2 5 0,000 S 1.2 5 0,000 Public Art 526,000 S27.000 Contingency Fee 5380,000 5380,000 V Technology/Computers 580.000 580.000 54,854,000 54,978,770 Additional site items Entry from La Canada S51,500 — Entry from Narani a S175.000 Storm sewer extension S37,700 -- Z'f TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: July 10, 2000 TO: HONORABLE MAYOR& COUNCIL FROM: David L. Andrews, Finance Director SUBJECT: Review and Discussion of 2000/01 Fiscal Year Budget SUMMARY: On June 21, the Town Council adopted the tentative budget in an amount of$80,388,577 for FY 2000/01. Final budget adoption is scheduled for July 19. The purpose of this agenda item is to discuss the status of the General Fund loan to the Water Connection Fees Fund, the Library Construction Fund and any other issues the Council may wish to consider. General Fund Loan On April 5, 2000 the Town Council adopted an impact fee of$1,774 per equivalent dwelling unit (EDU), effective July 5, 2000. The fee calculation assumed that Town buildout of 25,668 EDU's would occur over a 34 year period. The fee was calculated as follows: Total Debt Service $45,558,460 Divided by EDU's =25,668 Impact Fee $1,774 The first phase of the expansion-related water system improvements includes upfront oversizing costs. This makes the average cost for the first phase higher than the $1,774 average amount. The General Fund loan would makeup the difference between the average cost associated with the first phase and the overall average cost of$1,774. The loan would be repaid to the General Fund with interest after the bondholders are paid. Over the past several weeks, staff has been working with its consultants to refine the amount of borrowing related to first phase improvements and the related amount of the General Fund loan. The original budget as presented included $7,240,000 of improvements and a General Fund loan of$1,322,500. The revised figure assumes $5,808,750 of improvements related to the first phase. The resultant General Fund loan would be approximately $360,000. This loan amount is based on an engineering estimate that the $5.8M figure will support 4,400 equivalent dwelling units. The result of this refinement is that the estimated General Fund loan will decrease by $962,500 ($1,322,500 less $360,000) and that the General Fund's contingency reserve will increase by that same amount. The final budget has not been modified to date to reflect this favorable result. TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 2 OF 2 Library Construction Fund Library construction, as adopted in the tentative budget, provides $4,000,000 for a 15,000 square feet facility with no shell. The cost of a 10,000 square feet shell is an estimated $862,000. Funding for this facility is to be divided equally at $2M each between the Town and Pima County. During the course of the Town's budget review process, it was discovered that Pima County has planned/budgeted the following amounts: FY 2000/01 Design $330,000 FY 2001/02 Construction $1,670,000 The timing of Pima County funding causes a concern because library construction is currently scheduled to begin in late November/early December. Construction could possibly be completed by the end of the fiscal year June 30, 2001. The bulk of Pima County funding would not be available until FY 2001/02. Staff is working closely with Pima County representatives and will try to resolve this issue prior to your meeting. 2304a;AZ David L. Andrews Finance Director ' , Chuck Sweet Town Manager �/ .)S b J•,f� WestLand Resources, inc. ►� + Engineering and Environmental Consultants ir. r! Itk L ;ped Ce V a11ey June 23, 2000 °�Qro dawt�1��y ��.. Wn a�e�Q Mr. Jim Strichlin PEACOCK, HISLOP, STANLEY, &GIVEN 2999 N. 44th Street, Suite 100 Phoenix, Arizona 85018 RE: POTABLE WATER SYSTEM DEVELOPMENT IMPACT FEES WESTLAND JOB NO. 206.01 Dear Jim: As a follow-up to our last conversation, this letter is to clarify the background information supporting the potable water system development impact fees and the infrastructure capacity of the Oro Valley Water System serving the projected equivalent dwelling units (EDUs). The development impact fees were derived using projected infrastructure requirements, estimated costs, and population projections as developed in the Oro Valley Potable Water System Master Plan, dated January 2000, prepared by WestLand Resources, Inc. and approved by the Town of Oro Valley Council. _Based upon the projections of the Water System Master Plan, the Town of Oro Valley Water Utility will be able to . • .e service within the re•uirements of theater ti it , for—irraTdifibiial 4,400 EDUs based upon the following infrastructure improvements: ■ All existing system upgrades as shown within the current existing five-year Capital Improvement Plan(CIP)currently showing a total upgrade projection of$13.5 million. ■ The projected five-year CIP for water system expansion for fiscal years 2000 to 2003; a total of approximately$5.8 million. If you have any questions, please don't hesitate to call. Respectfully, WestLand Resources, Inc. Mark F. Taylor, P.E. Principal MFT:jc cc: Alan Forrest, Town of Oro Valley Water Utility Michael Cafiso \\Yacko\AdminUobs\206 01\potable water sys impact fee Itr doc 2343 E. Broadway Blvd., Suite 202 • Tucson, AZ 85719 • 520.206.9585 Fax 520.206.9518 �uir.�=.G41eJU 7•JOHi'I iYU.444 r'.G/;j TOWN OF ORO VALLEY, ARIZONA WATER DEVELOPMENT IMPACT FSE AND SUBORDINATE LIEN WATER SYSTEM REVENUE OBLIGATIONS, SERIES 2000 7 YEAR AMORTIZATION Estimated Sources and Uses of Funds (iltic.J Fj# c4 &c .. 4„,,..4+ � Se�1lS g -KeV1..uc -LAS 11",0,-,-f *. ASOURCES A Revenue Bop $6,675,000,00 So360,000.00 Total $7,03 ,000.i 0 USES Project Cost $5,808,750,00 Debt Service Reserve Fund Deposit 667,500.00 Underwriting Fees 333,750.00 Estimated Costs of IssuaAce 225,000.00 Total $7,035,000,00 Prepared by;Peacock Hislop 6/29/00 JUIY.G .Gdbb 7• t3Ml'i my.w,+,+ r.3/3 TOWN OF ORO VALLEY, ARIZONA WATER DEVELOPMENT IMPACT FEE .AND SUBORDINATE LIEN WATER SYSTEM REVENUE OBLIGATIONS, SERIES 2000 7 YEAR AMORTIZATION Estimated Debt Service and Reserve Fund Earnings Fiscal Estimated Less Estimated Estimated Year Estimated Gross Reserve Fund Net Ending Interest Estimated Annual and Earnings Annual (July 1) priniiyal Rates Interest Debt Service Est. (a3 6.0% Debt Service"' 2001 $725,000 7.000% $428,313 $1,153,313 ($36,713) $1,116,600 2002 740,000 7.000% 416,500 1,156,500 (40,050) 1,116,450 2003 790,000 7.000% 364,700 1,154,700 (40,050) 1,114,650 2004 845,000 7,000% 309,400 1,154,400 (40,050) 1,114,350 2005 905,000 7.000% 250,250 1,155,250 (40,050) 1,115,200 2006 970,000 7.000% 186,900 1,156,900 (40, 50) 1,116,850 2007 1,700,000 7.000% 119,000 1,819,000 07,550 1,111, 50 $6,675,000 $2.075,06750,063 5944,513 $7,845,550 * Structured assuming 4,400 total EDUs,629 EDUs annually and a development impact fee of$1,774 per EDU. Prepared by:Peacock Hislop 6/29/00 i4 `' 'moi , ;(4/64-AJL--** rika-er Y 01.-,9 .. ,_... . -7-10 -63D Follow-up I Changes to Budget Date Department Previous Current Difference Remarks Positive adds to deficit,(adds expenses) 5/19/00 Review Session Initial Deficit 0 $ (454,765) $ 454,765 Comm Dev Add'I People 0 $ (8,938) $ 8,938 GOVAC Funding 0 $ (20,000) $ 20,000 Remove 4-Star 0 $ (492,000) $ 492,000 Building Safety Reductions(4-Star) 0 $ 105,000 $ (105,000) FOP Recommendation(5.38%) 0 $ (101,050) $ 101,050 Sub-Total Deficit $ 971,753 5/22/00 GIS Memo P&Z Consultants/Sierra Permitting 0 $ (12,000) $ 12,000 Still have$191220 in Budget GIS Long Range Plan 0 $ 12,000 $ (12,000) Sub-Total Deficit $ 971,753 5/24/00 Review Session Add Oracle Rd Admin Costs(Loan) 2500000 $ 2,125,000 $ 375,000 Add Oracle Rd Admin Costs(Add Line) 0 $ 375,000 $ (375,000) Contract Janitorial Services -80000 $ (46,000) $ (34,000) Sub-Total Deficit $ 937,753 6/21/00 Budget Adoption Increase Building Fees 500000 $ 500,000 $ - Tentative Budget 79888577 $80,388,577 $ (500,000) Sub-Total Deficit $ 437,753 7/9/00 Additional Changes Water Loan -1322500 $ (360,000) $ (962,500) Council Chamber Chairs $ (15,000) $ (7,500) $ (7,500) 151 Allow 1/2 This Year Conference Table $ (900) $ - $ (900) 131 Conference Chairs $ (2,100) $ - $ (2,100) 131 Public Information $ (15,000) $ (5,000) $ (10,000)- 50,46 Delete Town Page Color Laser Printer $ (3,948) $ - $ (3,948) •"' 97 General Plan $ (383,800) $ (191,900) $ (191,900) 1/2 Approved Budget(Item 4 of 6/21/00) Sub-Total Deficit $ (741,095) Additional FOP(10%vice 5.38%equity) $ - $ (126,300) $ 126,300 Townwide One Time Bonus $ - $ (500,000) $ 500,000 Sub-Total Deficit $ (114,795) Others Library Library Bonds $ (2,100,000) $ (2,300,000) $ 200,000 402 Updated cost for 15kft,5/31 memo Matt's Ram $ - $ (5,000) $ 5,000 Need to add Linda VistaTrail $ - $ (28,000) $ 28,000 Need to add West Lambert Park $ - $ (50,000) $ 50,000 Need to add 7/9/00