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HomeMy WebLinkAboutPackets - Council Packets (1516)         AGENDA ORO VALLEY TOWN COUNCIL REGULAR AND STUDY SESSION MARCH 3, 2021 ONLINE ZOOM MEETING Click link to join: https://orovalley.zoom.us/j/96070780591 To attend via phone only, dial 1-346-248-7799 then enter Meeting/Webinar ID: 960 7078 0591 The Town recently updated its Zoom capability to allow for increased public attendance and to better facilitate the Town’s virtual meetings. When you log in to the meeting you will be added as an attendee. You will be able to address the Town Council during the “Call to Audience,” public hearing and public comment items on the agenda. If you wish to address the Council during those parts of the agenda, select “Raise your hand” from the Zoom controls and wait until you are called upon to speak by the Mayor. Town staff will then unmute your microphone and camera. For additional information about the Town’s Zoom meetings, visit https://www.orovalleyaz.gov/Government/Departments/Town-Clerk/Zoom-meeting-attendance Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS   TOWN MANAGER'S REPORT   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 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.Presentation of graduates from the 2021 Oro Valley Community Academy   2.Presentation - Youth Art Program by the Arts and Culture Ambassadors   CONSENT AGENDA  (Consideration and/or possible action)   A.Minutes - January 27, January 28, February 10, February 11 and February 17, 2021   B.Resolution No. (R)21-09, providing notice of intent to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate for the Oro Valley Water Utility   C.Approval of appointment to the Stormwater Utility Commission   REGULAR AGENDA   1.DISCUSSION AND POSSIBLE ACTION TO APPROVE RESOLUTION NO. (R)21-10, APPOINTING JUDGE JAMES HAZEL JR AS THE ORO VALLEY MAGISTRATE JUDGE AND APPROVING AN EMPLOYMENT AGREEMENT, EFFECTIVE APRIL 19, 2021   2.PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING THE PUSCH GOLF COURSE IMPLEMENTATION PLAN   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)   ADJOURNMENT OF THE REGULAR SESSION   CALL TO ORDER   STUDY SESSION AGENDA   1.PRESENTATION AND DISCUSSION REGARDING THE PARKS AND RECREATION MASTER PLAN UPDATE   ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.   POSTED: 2/24/21 at 5:00 p.m. by pp POSTED: 2/24/21 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. – 5:00 p.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. In accordance with Amendment #2 of the Mayoral Proclamation of Emergency issued on March 27, 2020, the following restrictions have been placed on all public meetings until further notice: 1. In-person attendance by members of the public is prohibited. 2. Members of the public can either watch the public meeting online https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas or, if they would like to participate in the meeting (e.g. speak at Call to Audience or speak on a Regular Agenda item), they can attend the meeting and participate via the on-line meeting application, Zoom, https://orovalley.zoom.us/j/96070780591 , or may participate telephonically only by dialing 1-346-248-7799 then enter Meeting ID: 960 7078 0591 prior to or during the posted meeting. 3. If a member of the public would like to speak at either Call to Audience or on a Regular Agenda item, please "Raise Your Hand" during the meeting when the Chair announces that it is the appropriate time to do so. For those participating in the meeting through Zoom, place your cursor towards the bottom, middle of the page and look for the "Raise Hand" icon and click on it to "Raise Your Hand" to speak. For those participating via phone only, press *9 to "Raise Your Hand". 4. All members of the public who participate in the Zoom meeting either with video or telephonically will enter the meeting with microphones muted. For those participating via computer/tablet/phone device, you may choose whether to turn your video on or not. Those participating via computer/tablet/phone device can click the “Raise Your Hand” button during the Call to the Public or Regular Agenda item, and the Chair will call on you in order. For those participating by phone, you can press *9, which will show the Chair that your hand is raised. When you are recognized at the meeting by the Chair, your microphone will be unmuted by a member of staff and you will have three minutes to speak before your microphone is again muted. 5. If a member of the public would like to submit written comments to the Town Council for their consideration prior to the meeting, please email those comments to mstandish@orovalleyaz.gov no later than sixty minutes before the public meeting. Those comments will then be electronically distributed to the public body prior to the meeting. If you have questions, please contact Town Clerk, Mike Standish, at 520-229-4700 or email at mstandish@orovalleyaz.gov Thank you for your cooperation.    Town Council Regular Session 1. Meeting Date:03/03/2021   Graduation for the 2021 Oro Valley Community Academy Subject Presentation of graduates from the 2021 Oro Valley Community Academy Summary The purpose of this presentation is to recognize the graduates of the Oro Valley's Community Academy- 2021 class. The Community Academy provides an opportunity to learn more about the Town and serves to inform, educate and encourage residents to be active participants in their community. Seven classes delivered by several Town staff members or community volunteers covered a variety of topics, including:  Oro Valley's form of government, department structure and an overview of Town finances The history of Oro Valley Town growth trends and annexations Roadway improvements and future planning Parks and Recreation amenities and integrated strategy for the future Current and future water capacity, including the drought contingency plan Zoning and public participation in the development review process  In addition to the topics listed above, participants representing various boards and commissions informed others about their respective roles and responsibilities and encouraged those interested to apply for vacancies or stay engaged in the community by attending public meetings. This was the 23rd annual Community Academy yet the first session to be provided online. The online platform maintained the high level of engagement expected with Community Academy. It also resulted in a higher retention rate than in-person classes with 94% of participants graduating. This year, 35 residents attended Community Academy, of which, 33 graduated. The majority of the graduates attended all seven classes. The members of the 2021 graduating class are included in Attachment 1. Attachments ATTACHMENT 1 - LIST OF 2021 GRADUATES  Staff Presentation  Attachment 1 List of 2021 Community Academy Graduates 1.Councilmember Greene 2.Antonia Landau 3.Colleen Farrell 4.Craig Wright 5.Dan Shockley 6.Paige Shockley 7.Daniel E Sturmon 8.Patricia Sturmon 9.David Dostie 10.Ed Thomas 11.Edward Schultz 12.Elizabeth Neill 13.Gary Bagnoche 14.Gary Mattson 15.Gary Smith 16.James F. Beasley 17.Joanne Levine 18.Jonathan D. Russell 19.Joseph Affinati 20.Joseph Coyle 21.Kathleen Hernandez 22.Kyle Packer 23.Laura King Viviano 24.Laura Malick Smith 25.Les Krammer 26.Myra R. Hopper 27.Niranjan Vescio 28.Pam Barnes 29.Philip Fisher 30.Robert Henderson 31.Stephanie Krueger 32.Stu Craig 33.Sandy Carter Community Academy 2021 Graduation Town Council March 3, 2021 23rd Annual Community Academy Town Governance and Budget by Mary Jacobs, Town Manager The History of Oro Valley by Dick Eggerding, Volunteer Town Growth by Bayer Vella, Planning Manager Roads and Transportation by Paul Keesler, Town Engineer An Integrative Parks and Recreation Strategy by Kristy Diaz-Trahan, P&R Director Water Resource Planning by Peter Abrahams, Water Utility Director Zoning and Development Review by Michael Spaeth, Principal Planner Congratulations Graduates    Town Council Regular Session 2. Meeting Date:03/03/2021   Presentation - Youth Art Program by the Arts and Culture Ambassadors Subject Presentation - Youth Art Program by the Arts and Culture Ambassadors Summary Attachments No file(s) attached.    Town Council Regular Session A. Meeting Date:03/03/2021   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - January 27, January 28, February 10, February 11 and February 17, 2021 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 January 27, January 28, February 10, February 11 and February 17, 2021 minutes.  Attachments 1-27-21 Draft Minutes  1-28-21 Draft Minutes  2-10-21 Draft Minutes  2-11-21 Draft Minutes  2-17-21 Draft Minutes  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL SPECIAL SESSION JANUARY 27, 2021 ONLINE ZOOM MEETING            Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.   SPECIAL SESSION AT OR AFTER 4:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 4:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Steve Solomon, Councilmember Absent: Josh Nicolson, Councilmember EXECUTIVE SESSION - Pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with prospects    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to go into Executive Session at 4:02 p.m. pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with prospects  Vote: 6 - 0 Carried    Mayor Winfield announced that the following staff members would be joining Council in the Executive Session: Human Resources Director Judy Boros, Town Attorney Gary Cohen and Town Clerk Mike Standish.   1-27-21 Minutes, Oro Valley Town Council Special Session 1         RECONVENE SPECIAL SESSION    Councilmember Greene left the meeting at 9:01 p.m. Mayor Winfield reconvened the Special Session at 9:01 p.m.   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the meeting at 9:02 p.m,  Vote: 5 - 0 Carried     ___________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 27th day of January 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Michael Standish, CMC Town Clerk 1-27-21 Minutes, Oro Valley Town Council Special Session 2  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL SPECIAL SESSION JANUARY 28, 2021 ONLINE ZOOM MEETING            Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.   SPECIAL SESSION AT OR AFTER 4:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 4:04 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Steve Solomon, Councilmember Absent: Josh Nicolson, Councilmember EXECUTIVE SESSION - Pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with prospects    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to go into Executive Session at 4:05 p.m. Pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with prospects  Vote: 6 - 0 Carried    Mayor Winfield announced that the following staff members would be joining Council in the Executive Session: Human Resources Director Judy Boros, Town Attorney Gary Cohen and Town Clerk Mike Standish.   RECONVENE SPECIAL SESSION    Mayor Winfield reconvened the Special Session at 7:46 p.m.   1-28-21 Minutes, Town Council Special Session  1    SPECIAL SESSION AGENDA   1.APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEYS AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE SESSION AND THE SELECTION OF THE FOLLOWING PROSPECTS AS THE FINAL CANDIDATES FOR THE TOWN MAGISTRATE POSITION    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene that the following persons be deemed final candidates for consideration as the new Magistrate for the Town of Oro Valley; Thaddeus Semon, James Hazel, Richard Speer and Jeffery Wadman.  Vote: 6 - 0 Carried   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the meeting at 7:49 p.m.  Vote: 6 - 0 Carried     __________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 28th day of January 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Michael Standish, CMC Town Clerk 1-28-21 Minutes, Town Council Special Session  2  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL SPECIAL SESSION FEBRUARY 10, 2021 ONLINE ZOOM MEETING            Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.   SPECIAL SESSION AT OR AFTER 5:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 5:04 p.m   ROLL CALL Present: Joseph C. Winfield, Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember Absent: Melanie Barrett, Vice-Mayor EXECUTIVE SESSION - Pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with final candidates    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to go into Executive Session at 5:05 p.m. pursuant to A.R.S. §38-431.03(A)(1), (A)(3) and/or (A)(4) regarding the pending search for a new town magistrate, including discussions with final candidates.  Vote: 6 - 0 Carried    Mayor Winfield announced that the following staff members would be joining Council in the Executive Session: Human Resources Director Judy Boros, Town Attorney Gary Cohen and Town Clerk Mike Standish.    Vice Mayor Barrett joined the meeting.   RECONVENE SPECIAL SESSION 2/10/21 Minutes, Town Council Special Session  1     Mayor Winfield reconvened the Special Session at 8:45 p.m.   SPECIAL SESSION AGENDA   1.APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEYS AND/OR DESIGNATED REPRESENTATIVES AS DISCUSSED IN EXECUTIVE SESSION REGARDING THE SELECTION OF THE NEW TOWN MAGISTRATE    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to direct the Town Attorney and/or designated representatives as discussed in Executive Session regarding the selection of the new Town Magistrate.  Vote: 7 - 0 Carried   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the meeting at 8:47 p.m.  Vote: 7 - 0 Carried     __________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 10th day of February 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Michael Standish, CMC Town Clerk 2/10/21 Minutes, Town Council Special Session  2  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL SPECIAL SESSION FEBRUARY 11, 2021 ONLINE ZOOM MEETING            Executive Sessions - Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes 38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.   SPECIAL SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 6:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember Absent: Harry Greene, Councilmember EXECUTIVE SESSION - Item #1: Regarding the property commonly known as the former Vistoso Golf Course, pursuant to A.R.S. §38-431.03(A)(3), (4) and/or (7): 1) Discussion or consultation for legal advice with the Town attorney or attorneys, and/or; 2) Discussion or consultation with the Town attorney or attorneys in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, and/or; 3) Discussions or consultations with designated representatives of the Town in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property Item #2: Regarding the Town’s property commonly known as the nine (9) hole golf course at the El Conquistador Resort (aka “Pusch Ridge Course” or “Resort Course”), the Memorandum of Understanding with HSL regarding that golf course, and HSL’s notice that it will not enter into a Discontinued Facility lease for that course, all pursuant to A.R.S. §38-431.03(A)(3), (4) and/or (7): 1) Discussion or consultation for legal advice with the Town attorney or attorneys, and/or; 2) Discussion or consultation with the Town attorney or attorneys in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, and/or; 3) Discussions or consultations with designated representatives of the Town in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property.    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to go into Executive 2/11/21 Minutes, Town Council Special Session 1   Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to go into Executive Session at 6:02 p.m. regarding the property commonly known as the former Vistoso Golf Course, pursuant to A.R.S. §38-431.03(A)(3), (4) and/or (7): 1) Discussion or consultation for legal advice with the Town attorney or attorneys, and/or; 2) Discussion or consultation with the Town attorney or attorneys in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, and/or; 3) Discussions or consultations with designated representatives of the Town in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property and regarding the Town’s property commonly known as the nine (9) hole golf course at the El Conquistador Resort (aka “Pusch Ridge Course” or “Resort Course”), the Memorandum of Understanding with HSL regarding that golf course, and HSL’s notice that it will not enter into a Discontinued Facility lease for that course, all pursuant to A.R.S. §38-431.03(A)(3), (4) and/or (7): 1) Discussion or consultation for legal advice with the Town attorney or attorneys, and/or; 2) Discussion or consultation with the Town attorney or attorneys in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation, and/or; 3) Discussions or consultations with designated representatives of the Town in order to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property.  Vote: 6 - 0 Carried    Mayor Winfield announced that the following staff members would be joining Council in the Executive Session: Town Manager Mary Jacobs, Assistant Town Manager Chris Cornelison Town Attorney Gary Cohen and Town Clerk Mike Standish.    Councilmember Greene joined the meeting.   RECONVENE SPECIAL SESSION    Mayor Winfield reconvened the Special Session at 8:40 p.m.   SPECIAL SESSION AGENDA   1.APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEYS AND/OR DESIGNATED REPRESENTATIVES AS DISCUSSED IN EXECUTIVE SESSION REGARDING THE PROPERTY COMMONLY KNOWN AS THE FORMER VISTOSO GOLF COURSE AND/OR REGARDING THE TOWN'S PROPERTY COMMONLY KNOWN AS THE NINE (9) HOLE GOLF COURSE AT THE EL CONQUISTADOR RESORT (AKA "PUSCH RIDGE COURSE" OR "RESORT COURSE")    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve direction to the Town Attorneys and/or designated representatives as discussed in Executive Session regarding the property commonly known as the former Vistoso Golf Course.  Vote: 7 - 0 Carried   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to adjourn the meeting at 8:43 p.m.  Vote: 7 - 0 Carried     2/11/21 Minutes, Town Council Special Session 2    __________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 11th day of February 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Michael Standish, CMC Town Clerk 2/11/21 Minutes, Town Council Special Session 3  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION FEBRUARY 17, 2021 ONLINE ZOOM MEETING            REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 6:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember PLEDGE OF ALLEGIANCE    Councilmember Jones-Ivey led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town meetings.   COUNCIL REPORTS    Councilmember Jones-Ivey recognized Audrey Alameda, a fourth grade student at Innovation Academy K-5 Stem School, for her academic excellence and outstanding community service.    Mayor Winfield recognized Town Attorney Gary Cohen for his service to the Town of Oro Valley and wished him well in his new position as a Superior Court Judge. Mayor Winfield recognized and thanked Sister Loya of Immaculate Heart School for their kind words, drawings and letters to the Town Council.   2-17-21 Minutes, Town Council Regular Session 1  TOWN MANAGER'S REPORT    Town Manager Mary Jacobs reported the following information: Update on the OVsafesteps Program and Hardship Grants Status update regarding Romspen and the former Vistoso Golf Course Ms. Jacobs also congratulated Town Attorney Gary Cohen on his new position.   ORDER OF BUSINESS    Mayor Winfield reviewed the order of business and stated that the order would stand as posted. Mayor Winfield provided the guidelines for participation in the Town Council's Regular Session Zoom meeting.   INFORMATIONAL ITEMS    There were no informational items.   CALL TO AUDIENCE    Oro Valley resident Rosa Dailey spoke regarding the Vistoso Golf Course. Oro Valley resident Cindy Wicker spoke regarding the Vistoso Golf Course. Oro Valley resident Tom Stegman spoke regarding the Vistoso Golf Course. Oro Valley resident Ray Barth spoke regarding the Vistoso Golf Course. Oro Valley resident Caryn Hill spoke regarding the Vistoso Golf Course. Oro Valley resident Rich Molnar spoke regarding the Vistoso Golf Course. Oro Valley resident Richard Beam spoke regarding the Vistoso Golf Course. Oro Valley resident Teresa Marrow spoke regarding the Vistoso Golf Course. Oro Valley resident Charlene Donovan spoke regarding the Vistoso Golf Course.   PRESENTATIONS    There were no presentation items.   CONSENT AGENDA   A.Minutes - February 3, 2021      B.Resolution No. (R)21-07, approving a Memorandum of Understanding (MOU) for fiscal years 2021/22    2-17-21 Minutes, Town Council Regular Session 2  B.Resolution No. (R)21-07, approving a Memorandum of Understanding (MOU) for fiscal years 2021/22 and 2022/23 between the Town of Oro Valley and the Public Safety Employee Group      C.Resolution No. (R)21-08, approving the Agenda Committee assignment for the period of March 1, 2021, to May 31, 2021       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve Consent Agenda item (A) - (C).  Vote: 7 - 0 Carried   REGULAR AGENDA   1.PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING THE PUSCH 9 GOLF COURSE       Town Manager Mary Jacobs provided a brief overview of item #1. Assistant Town Manager Chris Cornelison presented item #1 and included the following: Background Pusch 9 Golf Course Main Options Pusch Golf 5-Year Summary Proforma Option A- Continued Golf Operations (Cont.) Conversion to Natural Desert Open Space 5-Year Summary Proforma Option B - Convert Course to Natural Desert Open Space Community Center Fund Impact Pusch Course Options Summary    The following individuals spoke in support of the Pusch 9 Golf Course. Oro Valley resident Tim Forsythe Oro Valley resident Jerry Ward Oro Valley resident Paul Sedon Oro Valley resident Sasha Case Oro Valley resident Rosi Bucciarelli Oro Valley resident Bruce DaCosta Oro Valley resident Paul Marshall Oro Valley resident Jeannee Yermakoff Oro Valley resident Angelo Bifano Oro Valley resident Bill Dowdall Oro Valley resident Stan New Oro Valley resident Niranjan Vescio Oro Valley resident Bud Watson Oro Valley resident Ray Dissinger Oro Valley resident Carolyn Weinig Oro Valley resident Judy Smith Oro Valley resident Rene Fritz Oro Valley resident Maryann Berlin Oro Valley resident Art Scarla Oro Valley resident Tony D'Angelo Oro Valley resident Paul Byrne Oro Valley resident Karl Koch Oro Valley resident Foster Bucher   2-17-21 Minutes, Town Council Regular Session 3     Mayor Winfield recessed the meeting at 8:06 p.m Mayor Winfield reconvened the meeting at 8:15 p.m. Discussion ensued amongst Council and staff regarding the Pusch 9 Golf Course.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to approve option "A" to continue to operate golf on the 9 hole Pusch course and include that the Town pursue a request for proposals for a third party lease. Councilmember Solomon requested an amendment to the main motion as follows; the Town form a working group consisting of up to seven (7) experienced resident volunteers that have a minimum of 10 years professional experience in golf course design, management, operations, turnarounds or marketing and include a representative from HSL and from the homeowners' association. The working group should also consist of staff representation from the Assistant Town Manager, Town golf operator and Councilmember Greene as the Council Liaison. Mayor Winfield accepted the amendment made by Councilmember Solomon. Amendment seconded by Councilmember Greene.    Mayor Winfield withdrew the amended motion, seconded by Councilmember Greene and requested that the Town Manager come back to Council in two weeks with a more developed focus and guidance.    Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene that the Town Council direct staff to return with a plan for operating the Pusch Ridge golf course to be evaluated within three years as to its continued feasibility, capital improvement requirements while also looking at alternatives to look at water usage, potential new configurations and the possibility of a third-party lease. Vice-Mayor Barrett requested an amendment to the main motion. No second received. Discussion continued amongst Council and staff regarding the Pusch Ridge golf course. Vice-Mayor Barrett requested an amendment to the main motion by including the language "that the Town will go out for an RFP". Councilmember Solomon accepted the amendment.    Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene that the town council direct staff to return with a plan for operating the Pusch Ridge golf course to be evaluated within three years as to its continued feasibility, capital improvement requirements while also looking at alternatives to look at water usage, potential new configurations and a third-party lease.  Vote: 6 - 1 Carried  OPPOSED: Councilmember Tim Bohen   FUTURE AGENDA ITEMS    No future agenda items were requested.   ADJOURNMENT   2-17-21 Minutes, Town Council Regular Session 4   Motion by Mayor Joseph C. Winfield, seconded by Councilmember Joyce Jones-Ivey to adjourn the meeting at 10:34 p.m.  Vote: 7 - 0 Carried     __________________________ Michelle Stine, MMC Deputy Town Clerk 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 17th day of February 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Michael Standish, CMC Town Clerk 2-17-21 Minutes, Town Council Regular Session 5     Town Council Regular Session B. Meeting Date:03/03/2021   Requested by: Peter Abraham Submitted By:Mary Rallis, Water Department:Water SUBJECT: Resolution No. (R)21-09, providing notice of intent to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate for the Oro Valley Water Utility RECOMMENDATION: The Water Utility Commission and Water Utility staff respectfully recommend approval of Resolution No. (R)21-09, providing notice of intent to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate for the Oro Valley Water Utility. EXECUTIVE SUMMARY: In accordance with the Town Council Water Policies, Water Utility staff review water rates on an annual basis. The Water Utility Commission evaluates staff recommendations based on a water rates analysis to ensure the recommendations meet Town policies and bond covenants. On February 8, 2021, the Commission voted to recommend approval of the water rates identified in the Proposed Financial Scenario and supported by the Water Rates Analysis Report, dated March 2021.   Pursuant to A.R.S. § 9-511.01, a municipality must adopt a notice of intent to increase water rates at least 60 days prior to the public hearing. The resolution sets in motion the public process by:  Making the Water Rates Analysis Report available for public review by placing a copy in the Town Clerk's Office and on the Water Utility's website. 1. Directing the Town Clerk to publish the resolution in a newspaper of general circulation at least 20 days prior to the public hearing. 2. Scheduling a public hearing for June 2, 2021, when the Council will consider adoption of the proposed water rate increases. 3. Once the notice of intent is approved, the increase in water rates that can be adopted may not exceed the water rates shown in the Water Rates Analysis Report. BACKGROUND OR DETAILED INFORMATION: Please see the attached report. FISCAL IMPACT: There is no fiscal impact associated with adopting a notice of intent to increase water rates. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)21-09, providing notice of intent to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate for the Oro Valley Water Utility. Attachments Attachments (R)21-09 Notice of Intent to Increase Water Rates  2021 Water Rates Analysis Report  RESOLUTION NO. (R)21-09 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, PROVIDING NOTICE OF INTENT TO INCREASE THE POTABLE WATER BASE RATES, INCREASE THE POTABLE WATER COMM ODITY RATES AND IN CREASE THE RECLAIMED WATER COMMODITY R ATE FOR THE ORO VALLEY WATER UTILITY; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, pursuant to A.R.S. § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the residents within and without the Town’s corporate boundaries; and WHEREAS, pursuant to A.R.S. § 9-511, et seq., the Town finds it necessary to consider increasing the potable water base rates, increasing the potable water commodity rates and increasing the reclaimed water commodity rate for the Oro Valley Water Utility; and WHEREAS, pursuant to A.R.S. § 9-511, et seq., the Town is required to give a Notice of Intent at a regular Town Council meeting to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate ; and WHEREAS, the Town has completed a Water Rates Analysis Report, attached hereto as Exhibit “A”, which supports these water rate increases for the Oro Valley Water Utility; and WHEREAS, not less than twenty (20) days prior to the public hearing on the proposed rate increases, the Town shall cause to be published one time in a newspaper of general circulation within the Town’s boundaries, a Notice of Intent showing the date, time and place of the hearing. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, as follows : SECTION 1. This Resolution serves as the Notice of Intent, which is hereby publicly given, for the Town of Oro Valley to increase the potable water base rates, increase the potable water commodity rates and increase the reclaimed water commodity rate. SECTION 2. A public hearing shall be held at the regular meeting of the Mayor and Council at 6:00 p.m. on June 2, 2021, in the Council Chambers of the Town Hall, Town of Oro Valley, 11,000 North La Cañada Drive, Oro Valley, Arizona , to deliberate and vote on the proposed increases. 2 SECTION 3. That Exhibit “A”, attached hereto and incorporated by reference, be made available to the public in the Office of the Town Clerk and on the Town of Oro Valley Water Utility website for review prior to the public hearing. SECTION 4. That the Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 3rd day of March, 2021. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” TOWN OF ORO VALLEY WATER UTILITY WATER RATES ANALYSIS REPORT MARCH 202 1 ORO VALLEY TOWN COUNCIL Joseph Winfield, Mayor Melanie Barrett, Vice Mayor Timothy Bohen, Councilmember Harry “Mo” Green, II, MD, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember ORO VALLEY WATER UTILITY COMMISSION Charlie Hurt, Chair Tom Marek, Vice Chair Greg Hitt, Commission Member Chuck Hollingsworth, Commission Member Byron McMillian, Commission Member Robert Milkey, Commission Member Richard Reynolds, Commission Member TOWN STAFF Mary Jacobs, Town Manager David Gephart, CPA, Chief Financial Officer Peter A. Abraham, P.E., Water Utility Director Mary E. Rallis, CPA, Water Utility Administrator TABLE OF CONTENTS SECTION TITLE PAGE Index of Appendix Executive Summary 1 Introduction 4 Methodology 5 Growth Rates 6 Water Use Trends 7 Debt Service Debt Service Coverage Requirements 9 Cash Reserve Policy for Operating Fund 10 Operating Fund Revenue Forecast 11 Revenue Requirements 13 Water Resource and System Development Impact Fee Fund 15 Proposed Financial Scenario 17 Recommendation on Water Rates 20 Conclusion 22 Appendix APPENDIX A. Proposed Financial Scenario Pro Forma A-1 Operating Fund A-2 Groundwater Preservation Fee A-3 Water Resource and System Development Impact Fee Fund A-4 Summary of all Funds B. Rate Schedules & Tables for Bill Comparisons B-1 Proposed Water Rate Schedule B-2 Tables for Bill Comparisons by Meter Size - P otable B-8 Tables for Bill Comparisons by Meter Size - Reclaimed C. 5-Year Capital Improvement Schedules C-1 Operating Fund C-2 Groundwater Preservation Fee C-3 Water Resource and System Development Impact Fee Fund D. Assumptions for Proposed Financial Scenario D-1 Operating Fund D-4 Water Resource and System Development Impact Fee Fund E. Development Impact Fee Schedule E-1 Water Resource and System Development Impact Fee Schedule - 1 - TOWN OF ORO VALLEY WATER UTILITY WATER RATES ANALYSIS REPORT MARCH 202 1 Executive Summary An annual review of the revenue requirements and water rates is a n integral component in ensuring the long- term financial health of the Water Utility. The Oro Valley Water Utility Commission review s and makes recommendations for water revenue requirements, water rates and fee structures. The Commission evaluates staff recommendations based on a rates analysis to ensure compliance with Town policies and bond covenants. Water rates and service charges are reviewed annually in accordance with Mayor and Town Council Water Policies – II.A.2.b(4). The Water Utility has based these financial projections on the American Water Works Associations (AWWA) cash-needs a pproach. The AWWA is the largest national organization that develops water and wastewater policies, specifications and rate setting guidelines accepted by both government -owned and private water and wastewater utilities worldwide. This Water Rates Analysis Report contains detailed information on the O perating Fund and the Water Resource and System Development Impact Fee Fund. Funds are analyzed annually to project revenue and revenue requirements. As an enterprise of the Town, the Water Utility generates revenue from rates, fees and service charges and does not receive revenue from taxes or other monies from the General Fund. Additionally, revenue generated by the Water Utility does not fund operating costs of any other Town department. In accordance with policy, the water rates analysis is prepared annually based on the most up-to-date information available for a five-year period. Although the analysis is for five years, any rate increase considered would be approved only for the first year in the five -year projection period. The Water Utility Commission has made a recommendation on the proposed financial scenario. Under the proposed financial scenario, the Operating Fund is projected to have a cash balance of $4,147,284 at the end of the five-year projection period. This exceeds the cash reserve requirement. In addition, the debt service coverage ratio of 1.3 is exceeded each year. Operational needs and capital improvements are included in the analysis. The proposed financial scenario demonstrates a strategic balance between incur ring new debt and a planned use of cash reserves to finance capital projects. The proposed financial scenario evaluates the impact of future costs and the revenue sources that will be required to meet those costs. The proposed water rates in the financial scenario will increase the Utility’s fixed and variable cost recovery. - 2 - The Water Utility Commission and Water Utility staff have made the following recommendations on water rates in the proposed financial scenario for Fiscal Year 2021/22: A. Increase to the potable water base rates B. Increase to the potable commodity rates C. Increase to the reclaimed commodity rate A. The current and proposed monthly base rates for potable water are shown in Table 1 below: Table 1 Cost per month B. The current and proposed commodity rates for potable water usage are shown in Table 2 below: Table 2 Per 1,000 gallons - 3 - The financial impact of the proposed base and commodity rate increase for a customer with a 5/8-inch meter using 7,000 gallons is $1.15 per month. Customers with a 5/8-inch meter represent 87 percent of the total customer base and include residential, commercial and irrigation classifications with the vast majority of those being residential. The base rate increase would be $0.73 per month for all customers with this meter size . The proposed commodity rate increase for customers in Tier 1 would be $0.06 per 1,000 gallons used per month. C. The reclaimed commodity rate is proposed to increase from $2.15 to $2.25 per 1,000 gallons used per month. An increase of $0.10 per 1,000 gallons used per month. The Water Utility presents this water rates analysis in support of the recommended rates contained in the proposed financial scenario. The Oro Valley Water Utility Commission and Water Utility staff respectfully recommend the proposed increase to the potable base rate s, increase to the potable commodity rates and increase to the reclaimed commodity rate as detailed in the proposed financial scenario. - 4 - TOWN OF ORO VALLEY WATER UTILITY WATER RATES ANALYSIS REPORT MARCH 202 1 Introduction The Oro Valley Water Utility was established in 1996 as a self -supporting enterprise of the Town. The Water Utility is comprised of two separate funds that have been established for specific purposes. The Funds are as follows: ► Operating Fund ► Water Resource and Development Impact Fee Fund The Operating Fund is the primary fund for the Water Utility. Revenue s for this fund include water sales, service fees, miscellaneous charges and interest income. The expenses in this fund include personnel, operations and maintenance for both potable and reclaimed water systems, capital costs for existing potable water system improvements and related debt service. The Water Utility pays the General Fund for services received including finance, human resources, fleet services, information technology, legal, insurance and rental of office space; however, it does not receive revenue from taxes or other payments from the General Fund. Groundwater Preservation Fee (GPF) revenue and expenses are accounted for within the O perating Fund but are segregated because GPF revenue is restricted for specific uses . This is illustrated in Appendix A, Page A-2. The Water Resource and Development Impact Fee Fund (WRSDIF) is used to account for development impact fees collected. Funds may be used for all types of water resources, the infrastructure to deliver those resources and any related debt including Central Arizona Project (CAP ) capital infrastructure repayment costs. Additional information is provided on page 15 of this report. The revenue and expenses of the Operating Fund and the WRSDIF Fund are combined to determine if the Water Utility meets the debt service coverage requirement established in the Mayor and Town Council water policies and current bond covenants. Revenues and expenses are accounted for separately in each fund. Pursuant to ARS 9-463.05 Section B.9., impact fees mus t be placed in a separate fund and accounted for separately. ARS 9-463.05 Section B.5. states that the impact fees may not be used for operations and maintenance of existing facilities. - 5 - Methodology Step 1: Five -Year Financial Plan The first step of the water rates analysis is to develop a five-year financial plan that projects the Water Utility’s revenues, expenses, capital project financing, annual debt service, and cash reserve funding. The factors used in determining the projections are growth rates, water use trends, debt service coverage require ments, cash reserve requirements and inflation rates. The financial plan is used to determine the revenue adjustment, which allows the Water Utility to recover adequate revenues to fund e xpenses and cash reserves. Step 2 : Revenue Requirement Determination for Test Year After completing the five-year financial plan, the rate making process can begin by determining the revenue requirement for the test year, also known as the rate -setting year. The test year for this water rates analysis is Fiscal Year 2019/20 which will be used to capture the rate impacts resulting from a change in rate structure without a revenue adjustment. The revenue requirement should sufficiently fund the Water Utility’s operating and maintenance (O&M) costs, annual debt service, capital improvement plan (CIP) costs, and cash reserv e funding for the upcoming Fiscal Year 2021/22 budget. Step 3 : Water Rates Analysis The annual cost of providing water service, or the revenue requirements, is then distributed to customer classes and tiers based on their water usage and demand on the system. Fixed and variable costs are analyzed to determine the impact on customer classes and tiers. Step 4 : Rate Design and Calculation After allocating the revenue requirements to each customer class and tier, the rate design and calculation process can start. Rates are designed to properly support and optimize the Water Utility’s policies and objectives. Rates also act as a public information tool in communicating these policy objectives to customers. This process also includes a rate impact analysis for all proposed water rates and sample customer bill impacts. Step 5 : Administrative Record Preparation and Rate Adoption The final step in a water rates analysis is to develop the administrative record in preparation for the rate adoption process. The administrative record, also know n as the Water Rates Analysis Report, documents the results of the water rate analysis and presents the methodologies, rationale, justifications, and calculations utilized to determine the proposed water rates. - 6 - Growth Rates As indicated in the graph below, new metered connections continue to remain stable due to continued development within the Town. The Water Utility had a total of 2,132 of new metered connections over the last 10 years. At the end of Fiscal Year 2019/20, the customer base totaled 20,461 metered connections. In developing the growth projections, assistance was received from the Town’s Community and Economic Development Department for the current housing inventory, along with plans that have been submitted for review, to conservatively estimate future growth. The growth projections used for this report are consistent with the Town’s financial forecasting and are shown below in Table 3. Table 3 0 50 100 150 200 250 300 350 61 97 214 165 155 232 340 331 264 273 ANNUAL GROWTHFISCAL YEAR Annual Growth - 7 - Water Use Trends The Water Utility has experienced a reduction in water use even though the number of connections has increased by 2,132 over the last ten years. The graph below indicates water usage from Fiscal Year 2010/11 through Fiscal Year 2019/20. As noted below, in Fiscal Year 2010/11 water usage was at 3,115 million gallons and 2,929 million gallons in Fiscal Year 2019/20. A decline of 186 million gallons even though new connections increased by 2,132 during this time period. The revenue projections in this water rate analysis compiled water data from Fiscal Year 2019/20 when the average water use was 7,200 gallons per month, which is consistent with prior years . The historical decline in water use has been experienced not only on a local level, but also on regional and national levels. This can be largely attributed to water conservation – both intentional and unintentional. Intentional water conservation is the conscious effort to reduce water use by commonly known measures including changing landscape to drought tolerant plants and the removal of lawns. Unintentional water conservation is a result of plumbing code changes and other regulatory changes regarding water efficiency. For example, all new water using appliances and fixtures are required to be low flow. The consumer’s intention may not have been to conserve water when they chose to replace a n aging or broken dishwasher, clothes washer or bathroom faucet. - 500 1,000 1,500 2,000 2,500 3,000 3,500 3,115 3,063 2,948 3,071 2,889 2,929 3,045 3,288 2,707 2,929 Gallons in millionsFiscal Year Potable & Reclaimed Water Deliveries - 8 - Debt Service The current annual debt service obligations are met with revenue generated from water rates, groundwater preservation fees and impact fees. A summary of the existing debt and the outstanding balances a s of December 31, 2020 are shown below in Table 4. Table 4 In January 2021, the 2008 and 2009 WIFA loans and the Series 2012 Senior Lien Water revenue bond were refunded through a private placement bond issue. This refunding opportunity resulted in a net present value savings to the Water Utility of $250,861 at an interest rate of 1.54 percent. The 2021 Senior Lien Water revenue refunding bond is in the amount of $5,582,000 and has a maturity date of July 1, 2029. Bond proceeds will be held in an escrow account until the refunding dates. The 2008 WIFA loan will be refunded in January 2021, the 2009 WIFA loan will be refunded in July 2021 and the Series 2012 Senior Lien Water revenue bond will be refunded in July 2023. In April 2017, the Town entered into an Intergovernmental Agreement with Metropolitan Domestic Water Improvement District and the Town of Marana to construct a recharge, recovery and delivery system known as the Northwest Recharge, Recovery, and Delivery System (NWRRDS) project to bring additional Central Arizona Project (CAP) water into the Town. This rates analysis include s an assumption for new debt in the amount of $7,000,000 in Fiscal Year 2022-23 to finance portions of the NWRRDS project. The timing of this debt is dependent on the progress of the project. If the project is delayed, the debt will also be delayed. It is assumed that the Utility will issue traditional bonds with a 20-year term at a four percent interest rate. The debt will be repaid with revenue derived from GPF funds as this portion of the project benefits the existing customers. There is no proposed debt associated with the growth-related portion of the NWRRDS project. The growth-related portion of the project will be paid for with cash from development impact fees. Project costs identified for the NWRRDS project may be found in the five -year capital plan shown in Appendix C. There is no new debt for existing system capital improvements in this analysis. Costs in the five-year capital plan for existing system projects will be cash funded. - 9 - Debt Service Coverage Requirements The method for calculating the debt service coverage ratio is pursuant to the Town Financial and Budgetary Policies adopted by the Town Council in 2008. Section C.1 – Debt Capacity, Issuance & Management states the following with respect to debt service covera ge ratios: “When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 debt service coverage ratio or the required ratio in the bond indenture (whichever is greater) to ensure debt coverage in times of revenue fluctuation.” The Series 2012 Senior Lien Water revenue bonds, the 2008, 2009, 2014 Water Infrastructure Finance Authority (WIFA) loans and Series 2021 Senior Lien Water revenue refunding bonds are used in the calculation of the debt service coverage requirement. The Water Utility revenues are specifically pledged as the repayment source for these obligations at 1.3 times coverage per the Town’s adopted financial policy. The remaining outstanding debt obligations of the Water Utility are excise tax ple dged obligations meaning that the Town’s unrestricted sources of sales taxes, fines, permit fees and state shared revenues are pledged as the repayment sources for these bonds in the bond indentures. Even though the bond indentures pledge these excise taxes as the repayment source, the Water Utility is responsible to pay for these debt service payments from water sales revenues. However, since excise taxes are pledged as coverage, a calculated debt service coverage ratio of 1.0 is applied to avoid double coverage when calculating the debt service coverage ratio for these excise tax-backed bonds in the water rates analysis. It is important to note that the bond indentures for the excise tax-backed bonds require that the Town’s excise tax collections each fiscal year total at least 2.5 times the annual debt service requirements in order to avoid having to fund a debt service reserve fund. These conditions have been met annually in the past and are expected to continue in the future. For Fiscal Year 2019-20, the debt service coverage ratio was 8.93 for the General Fund which exceeds the 2.5 requirement. This methodology of segregating the water utility revenue -pledged debt from the excise tax-pledged debt in the rates analysis process is an accepted practice in the industry and has been reviewed by the Town’s Chief Financial Officer and the Town’s financial advisors with Stifel, Nicolaus & Company, Inc. The debt service coverage ratio is determined by dividing the annual net operating revenue by the annual d ebt service payments. The methodology described above is in accordance with the 2008 policy and reduces the amount of the required debt service coverage. Applying this methodology has been key in minimizing water rate increases. Debt service coverage for the Water Utility’s outstanding senior lien debt issuances and loans in the proposed financial scenario is shown in Table 5 below. This includes current and proposed new debt. Table 5 - 10 - Cash Reserve Policy The cash reserve policy may be found in the Town of Oro Valley Mayor and Council Water Policies Section II.A.1.d. The policy states “The Utility shall maintain a cash reserve in the Operating Fund of not less than 20% of the combined total of the annual b udgeted 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.” In the proposed financial scenario, the projected cash reserve balance for the Operating Fund for each year in the analysis is listed below in Table 6 showing compliance in all years. The projected cash reserve balances include annual increases in the monthly base rate and commodity rates. Table 6 Cash reserve balances in the Operating Fund are projected to be stable throughout the analysis. This is a result of strategically balancing the required financing of capital projects with the planned used of cash reserves. The Water Utility works diligently to balance the use of cash reserves with the issuance of new debt to minimize rate increases. There is no cash reserve requirement for revenue from the GPF because these funds are restricted to pay for renewable water resources, infrastructure and associated debt. Although accounted for in the Operating Fund, the GPF cash is segregated from the Operating Fund cash. It is not fiscally prudent to combine cash that has a restricted use with cash that has unrestricted use when determining compliance with a cash reserve policy. Expenses paid by GPF revenue are segregated from the general operating expenses for purposes of calculating the cash reserve requirement. In the proposed financial scenario, the projected cash reserve balance for the GPF in each year of the analysis is listed below in Table 7. Table 7 GPF cash reserve balances are projected to remain stable over the five-year projection period. This is a direct result of balancing the use of cash and issuance of new debt to pay for capital projects associated with the delivery of additional CAP water through the NWRRDS project. The ongoing revenue from the GPF will be used to pay future annual debt service on the portion of capital costs that will be financed. - 11 - Operating Fund Revenue Forecast The Operating Fund is projected to have a cash balance of $7,791,461 at the beginning of Fiscal Year 2021-22 and is projected to have a balance of $4,147,284 at the end of Fiscal Year 2025/26. These funds may be used for operating costs including personnel, operations and maintenance, capital improvements for the existing potable water system and debt service. Groundwater Preservation Fees are included in the Operating Fund; however, the revenues, expenses and cash balances for the GPF are accounted for separately within the Operating Fund and are not included in the cash balance above . The use of GPF funds is restricted to renewable water resources, infrastructure and associated debt. The following revenue forecast was based on analysis of the Water Utility’s historic water use trends and projected growth in the number of new connections . The revenue forecast includes proposed increases in the potable water base rates as shown below in Table 8. Table 8 The revenue forecast includes proposed increases in the potable commodity rates as shown below in Table 9: Table 9 - 12 - The potable water base and commodity rates are projected to increase annually beginning in Fiscal Year 2021/22. The proposed base rate increase will generate a 55 percent fixed cost recovery. Fixed costs are expenses incurred that do not fluctuate based on the volume of water sold. Examples of fixed costs include , but are not limited to, debt service, personnel, billing costs, fleet maintenance and regulatory costs. The proposed commodity rate increase accounts for the remaining 45 percent of the fixed costs which are recovered with revenue generated from the volume of water sold. The proposed rate increases encourage water conservation with lower base rate increases and higher commodity rate increases for higher water usage. The reclaimed base rates are proposed to remain unchanged throughout the projection period; however, the reclaimed commodity rate is proposed to increase from $2.15 to $2.25 per 1,000 gallons. Table 10 below includes the water sales for potable, reclaimed and GPF revenue forecast for the five -year projection period using the proposed base and commodity rates: Table 10 Other revenue generated by the Utility consists of service fees and charges. Service fees and charges include funds received from an Intergovernmental Agreement with the Pima County Wastewater Reclamation Department to provide monthly billing services on their behalf. Service fees and charges also include, but are not limited to, new service establishment fees, late fees, reconnection fees, inspection fees and plan review fees. The total of all service fees and charges are projected to generate annual revenue of $869,500. Projections for interest income for the Operating Fund are a cumulative total of $396,417 over the five-year period. Projected interest income for the GPF monies are a cumulative total of $156,030 over the five-year period. The interest rate assumed for the projection period is 1.5 percent annually. - 13 - Revenue Requirements Below in Table 11 is a summary of revenue requirements for the Operating Fund that were used in the financial analysis. These revenue requirements exclude expenses to be paid with GPF revenue. Table 11 Projected personnel costs include two percent a nnual merit increases, two percent annual increases in retirement contributions and half a percent annual increases in health care costs. Health care costs are reduced primarily because employees are paying a higher portion of the premiums. There are no new employees being added within the five -year projection period. These projected increases are consistent with the General Fund’s financial planning. A portion of the personnel costs are allocated to the reclaimed water system based on a weighted average of 8.28 percent annually. The projected operations and maintenance (O&M) costs for both the potable and reclaimed water systems are based on the Fiscal Year 2020/21 budget and include inflationary increases of two percent annually. The inflation factors are consistent with the General Fund’s financial planning. A cost allocation model is used to allocate various administrative and operational costs to the reclaimed water system. Also, included is an increase of 17 percent charged by Tucson Water for the wheeling of reclaimed water. This is a one -time increase in Fiscal Year 2021/22 and remains flat in the remaining projections fiscal years. Central Arizona Project (CAP) wheeling costs are fees charged by Tucson Water to wheel Oro Valley’s CAP water through their recharge and recovery system. The Intergovernmental Agreement with Tucson Water was renegotiated in Fiscal Year 2016/17. Costs are assumed to incre ase annually by four percent. The total annual delivery of 2,530 acre feet is projected in the five-year projection period. The operating costs for the delivery of CAP water through the NWRRDS project are estimated to begin in Fiscal Year 2023/24 through Fiscal Year 2025/26 for a total of $960,000. These costs are offset by a reduction in CAP wheeling charges from Tucson Water which are projected to decrease by approximately $760,000 when the NWRRDS becomes operational. - 14 - Central Arizona Project (CAP ) water recharge costs represent costs to take annual delivery of the Utility’s entire CAP water allotment of 10,305 acre feet. This water will be recharged and stored in various recharge facilities including the Tucson Water facilities. Costs to take delivery of and store the CAP water are based on the rate schedule adopted by the Central Arizona Project . The five -year projection period includes an increase of 20 percent in Fiscal Year 2022/23 for the projected Tier I shortage. Costs in later fiscal years will increase by 15 percent through the remaining five-year projection period. Projected capital outlay for existing system improvements in this analysis includes well rehabilitation, tank replacement, re -lining of reservoirs, booster station modifications, water main replacements, vehicles and water meters. These projects will be cash funded in the five -year projection period. The schedule for five -year capital improvements may be found in Appendix C. Debt service costs are relatively flat over the projection period. The existing debt service is declining as older debt is paid off while the proposed new debt increases the annual costs netting a flat annual cost. Expenses paid with GPF funds include the existing customers’ portion of the CAP water capital costs associated with ownership of the CAP water allotment. These costs increase annually based on projected rates developed by the Central Arizona Project. Debt service for the reclaimed water system is paid with GPF funds. Outstanding debt on the reclaimed water system will be paid in full by Fiscal Year 2029/30. This analysis includes an assumption that the Water Utility will borrow an additional $7 million in Fiscal Year 2022/23 for the NWRRDS project. Table 12 is a summary of expenses paid with GPF revenue that were used in this financial analysis : Table 12 - 15 - Water Resource and System Development Impact Fee Fund The Water Resource and Development Impact Fee Fund (WRSDIF) is used to account for development impact fees collected. Revenues are from impact fees collected at the time water meters are purchased and from interest income. Expenses include capital repayment obligation charges for the Town’s CAP allotment, CAP infrastructure and associated debt incurred to deliver CAP water to the Town to meet the demands of future growth. In addition, wells, pump stations, reservoirs and mains for the potable water system required to meet the demands of future growth will also be financed with these impact fees. The WRSDIF Fund is projected to have a cash balance of $16,596,255 at the beginning of FY 2021/22 and is projected to have $1,887,719 at the end of FY 2025/26. The revenue sources for the WRSDIF Fund are from impact fees collected when a water meter is purchased and from interest earned on cash balances. Interest income is projected to be a total of $432,306 for this analysis. The interest rate assumed for the projection period is 1.5 percent. The revenue forecast was based on new service units related to the number of new connections. A service unit is the equivalent of one single family residential (SFR) 5/8-inch water meter. The SFR service units are equal to the number of new connections. O ther service units are forecast based on pending development projects within the Town. Other service units include commercial, multi-family and irrigation uses with the number of service units depending on the estimated meter sizes for each project. In addition, the service units are forecasted based on historic trends and pending development projects within the Town. The impact fee for a SFR 5/8-inch water meter or one service unit is projected to be $6,387. It is assumed that the Development Impact Fees will remain constant throughout the five-year projection period. Table 13 below indicates the projected growth in service units and the revenue associated with that growth. These growth projections are consistent with the Town’s financial planning. Table 13 WRSDIF funds may be used for capital expe nses related to CAP water. Capital costs assessed by the Central Arizona Project for 3,000 acre feet of the Town’s CAP water allotment are included under operating expenses. Capital expenses during this projection period total $21,160,000 and include the design and construction of the NWRRDS project that will deliver additional CAP water to the Town. Funds may also be used for capital expenses related to potable water system improvements including wells, booster stations, reservoirs and water mains required to meet the demands of new growth. Capital projects are identified in the five - year capital improvement plan shown in Appendix C. Debt service for previously constructed growth-related facilities is also paid from impact fee revenue. - 16 - The annual expenses and debt service for the WRSDIF Fund are listed in Table 14 below. No new debt is proposed during this projection period. Table 14 - 17 - Proposed Financial Scenario Prior to developing forecasts, financial considerations were evaluated relating to projected operating costs, capital expenses, the Water Utility’s existing cash reserves, existing outstanding debt and debt service payments. When developing a proposed financial scenario, the goal of the Water Utility is to ensure all existing rate setting policies are met, cash reserves are utilized to minimize future debt and proposed rate increases do not result in rate shock. One of the rate setting policies included in the Mayor and Council Water Policies is for rate structures to be designed to encourage water conservation. The development of water conservation pricing, also known as a tiered commodity rate, began in 1999 when a second tier was added to the uniform or flat commodity rate. That structure evolved into four tiers by 2007. Over the last 12 years, the Utility has increased the tiered commodity rates to a level that encourages water conservation. This year, the proposed financial scenario includes modest increases to both the potable base and commodity rates and an increase to the reclaime d commodity rate. The chart below illustrates an overall decline in potable water deliveries over the past ten years even though the Water Utility experienced growth in the customer base. To stabilize revenue when water deliveries decline or fluctuate, it is necessary to increase fixed charge revenue which is revenue received from base rates. Fixed costs are costs incurred by the Water Utility that do not fluctuate based on the volume of wa ter delivered. These costs include, but are not limited to, billing related costs, regulatory expenses, personnel, debt service, insurance, fleet maintenance and administrative services paid to the Town’s General Fund. These costs are all incurred every ye ar regardless of the volume of water delivered. The Utility’s fixed costs projected for Fiscal Year 2021/22 total $10.7 million. Ideally, these costs would be paid by revenues received from the base rate revenue. Base rates charged to customers are the same every month regardless of the volume of water delivered. The existing base rates generate just under $5.6 17,500 18,000 18,500 19,000 19,500 20,000 20,500 21,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 1,800,000,000 2,000,000,000 2,200,000,000 2,400,000,000 2,600,000,000 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 Service ConnectionsGallons DelvieredPotable Water Deliveries & Growth Water Deliveries Service Connections - 18 - million or 53 percent of the fixed costs. As a result, the Utility is dependent on water sales to generate the revenue needed to recover the remaining fixed costs as well as the variable costs . Variable costs are those costs incurred by the Utility that fluctuate based on the volume of water delivered. As deliveries increase or decrease, associated costs do the same. Variable costs include, but are not limited to, power for pumping, chemicals for disinfection, delivery of reclaimed water, CAP water wheeling costs and maintenance on plant facilities. The Utility’s variable costs projected for FY 2021/22 total $3.9 million. These costs are paid by revenues received from the variable charge revenue also known as commodity rate revenue. Commodity rates are charged on the volume of water delivered which varies from customer to customer and from month to month. The existing commodity rates generate $7.4 million. Funds in excess of the variable costs are used to help pay for fixed costs. The proposed commodity rate increases will generate revenue to pay for the fixed costs not recovered by the proposed base rate increase. Table 15 below illustrates how regional water providers , except Marana, have increased their base rates to compensate for the declines in water consumption as compared to the historical and the 2021 proposed rates for Oro Valley. Table 15 Table 16 illustrates Oro Valley’s proposed potable base and commodity rates per 1,000 gallons. Water rates of other water providers in the region are included for comparison purposes along with water resource fees that are similar to the Oro Valley Water U tility GPF. Table 16 - 19 - The Water Utility developed a proposed financial scenario that supports key financial and policy goals. The proposed scenario generates the revenue needed to maintain an adequate cash balance in all funds over the projected five-year period thus meeting the cash reserve requirements in each year . Additionally, the proposed scenario balances the use of both available cash and proposed new debt to finance capital projects. Under this proposed scenario, the fixed cost recovery is projected to increase from 53 percent to 55 percent by the end of Fiscal Year 2021/22. If all proposed rate increases are implemented as shown in the proposed financial scenario, fixed cost recovery will be approximately 61 percent by the end of Fiscal Year 2025/26. The financial projections for the Operating Fund and WRSDIF Fund were combined to evaluate the overall debt service coverage at the end of each fiscal year. Analysis indicates that, under the proposed financial scenario, the Utility will meet the debt service coverage requirement established by the Mayor and Council Water Polices and bond covenants for all five years . The pro forma for the proposed financial scenario may be found in Appendix A. The assumptions used to develop the financial projections in the proposed financial scenario may be found in Appendix D. - 20 - Recommendation on Water Rates After reviewing the analysis of the two funds and their respective revenue requirements contained in the proposed financial scenario, the Water Utility Commission and Water Utility staff recommend the following for Fiscal Year 2021/22: A. Increase to the potable water monthly base rates B. Increase to the potable commodity rates C. Increase to the reclaimed commodity rate A. Tables 17 & 18 shown below are the proposed potable water base rates and commodity rates for each meter size. Approximately 87 percent of the Utility’s customers have a 5/8-inch water meter and consume an average of 7,000 gallons. These customers will see an increase in their bill of $1.15 per month. Table 1 7 Cost per month B. Table 1 8 Per 1,000 gallons - 21 - C. The reclaimed base rates will remain unchanged while the commodity rate is proposed to increase to $2.25 per 1,000 gallons from $2.15 per 1,000 gallons. This proposed rate increase is used for the five- year projection period. The average 18-hole golf course consumes 10,000,000 gallons per month and will see an increase in their bill of $1,000 per month. Direct comparison of specific base rates and commodity rates is not ideal for cost comparisons because of the varying rate structures of each utility. A more effective comparison is to calculate the cost for specific consumption levels for one month. Table 19 below provides a calculation of a monthly bill amount for a single-family residential customer with a 5/8-inch meter for the water utilities surrounding the Oro Valley Water Utility service area. Table 19 Proposed rates for all Oro Valley Water Utility meter sizes may be found in Appendix B. Tables that calculate monthly bills under the proposed rates may also be found in Appendix B. Monthly bill amounts are calculated in 1,000 gallon increments for the 5/8-inch meters and a variety of increments for larger meter sizes. - 22 - Conclusion On an annual basis, the water rates analysis is prepared with the most up-to-date information available. Operational needs and capital improvement requirements change annually and are carefully evaluated when they are included in the analysis. It is important that the Water Utility perform a water rates analysis every year to plan for changes in operating costs, capital costs or debt service . This Water Rates Analysis Report is presented in support of the water rates contained in the proposed financial scenario. The Oro Valley Water Utility Commission and the Water Utility staff respectfully recommend approval of the water rates detailed in the proposed financial scenario. The Oro Valley Water Utility staff and Commission are dedicated to serving the Town of Oro Valley and the customers of its water utility and extend their appreciation to the Mayor and Council for consideration of the recommended water rates. APPENDIX A Proposed Financial Scenario Pro Forma A-1 Operating Fund A-2 Groundwater Preservation Fee A-3 Water Resource and System Development Impact Fee Fund A-4 Summary of All Funds Oro Valley Water Utility – Operating Fund A-1 Oro Valley Water Utility – Operating Fund Groundwater Preservation Fees A-2 Water Resource and System Development Impact Fee Fund A-3 Summary of All Funds A-4 Summary of All Funds A-5 APPENDIX B Rate Schedules & Tables for Bill Comparisons B-1 Proposed Water Rate Schedule B-2 Tables for Bill Comparisons by Meter Size – Potable B-8 Tables for Bill Comparisons by Meter Size – Reclaimed TABLE FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISON RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 5/8-INCH METER Tier Levels GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED BILL BILL INCREASE 0 18.26 - 18.26 18.99 - 18.99 0.73 4.0% 1,000 20.60 0.90 21.50 21.39 0.90 22.29 0.79 3.7% 2,000 22.94 1.80 24.74 23.79 1.80 25.59 0.85 3.4% 3,000 25.28 2.70 27.98 26.19 2.70 28.89 0.91 3.3% 4,000 27.62 3.60 31.22 28.59 3.60 32.19 0.97 3.1% 5,000 29.96 4.50 34.46 30.99 4.50 35.49 1.03 3.0% 6,000 32.30 5.40 37.70 33.39 5.40 38.79 1.09 2.9% 7,000 34.64 6.30 40.94 35.79 6.30 42.09 1.15 2.8% 8,000 37.89 7.20 45.09 39.14 7.20 46.34 1.25 2.8% 9,000 41.14 8.10 49.24 42.49 8.10 50.59 1.35 2.7% 10,000 44.39 9.00 53.39 45.84 9.00 54.84 1.45 2.7% 11,000 47.64 9.90 57.54 49.19 9.90 59.09 1.55 2.7% 12,000 50.89 10.80 61.69 52.54 10.80 63.34 1.65 2.7% 13,000 54.14 11.70 65.84 55.89 11.70 67.59 1.75 2.7% 14,000 57.39 12.60 69.99 59.24 12.60 71.84 1.85 2.6% 15,000 60.64 13.50 74.14 62.59 13.50 76.09 1.95 2.6% 16,000 63.89 14.40 78.29 65.94 14.40 80.34 2.05 2.6% 17,000 68.42 15.30 83.72 70.74 15.30 86.04 2.32 2.8% 18,000 72.95 16.20 89.15 75.54 16.20 91.74 2.59 2.9% 19,000 77.48 17.10 94.58 80.34 17.10 97.44 2.86 3.0% 20,000 82.01 18.00 100.01 85.14 18.00 103.14 3.13 3.1% 21,000 86.54 18.90 105.44 89.94 18.90 108.84 3.40 3.2% 22,000 91.07 19.80 110.87 94.74 19.80 114.54 3.67 3.3% 23,000 95.60 20.70 116.30 99.54 20.70 120.24 3.94 3.4% 24,000 100.13 21.60 121.73 104.34 21.60 125.94 4.21 3.5% 25,000 104.66 22.50 127.16 109.14 22.50 131.64 4.48 3.5% 26,000 109.19 23.40 132.59 113.94 23.40 137.34 4.75 3.6% 27,000 113.72 24.30 138.02 118.74 24.30 143.04 5.02 3.6% 28,000 118.25 25.20 143.45 123.54 25.20 148.74 5.29 3.7% 29,000 122.78 26.10 148.88 128.34 26.10 154.44 5.56 3.7% 30,000 127.31 27.00 154.31 133.14 27.00 160.14 5.83 3.8% 31,000 131.84 27.90 159.74 137.94 27.90 165.84 6.10 3.8% 32,000 136.37 28.80 165.17 142.74 28.80 171.54 6.37 3.9% 33,000 142.66 29.70 172.36 149.44 29.70 179.14 6.78 3.9% 34,000 148.95 30.60 179.55 156.14 30.60 186.74 7.19 4.0% 35,000 155.24 31.50 186.74 162.84 31.50 194.34 7.60 4.1% 36,000 161.53 32.40 193.93 169.54 32.40 201.94 8.01 4.1% 37,000 167.82 33.30 201.12 176.24 33.30 209.54 8.42 4.2% 38,000 174.11 34.20 208.31 182.94 34.20 217.14 8.83 4.2% 39,000 180.40 35.10 215.50 189.64 35.10 224.74 9.24 4.3% 40,000 186.69 36.00 222.69 196.34 36.00 232.34 9.65 4.3% 41,000 192.98 36.90 229.88 203.04 36.90 239.94 10.06 4.4% 42,000 199.27 37.80 237.07 209.74 37.80 247.54 10.47 4.4% 43,000 205.56 38.70 244.26 216.44 38.70 255.14 10.88 4.5% 44,000 211.85 39.60 251.45 223.14 39.60 262.74 11.29 4.5% 45,000 218.14 40.50 258.64 229.84 40.50 270.34 11.70 4.5% 46,000 224.43 41.40 265.83 236.54 41.40 277.94 12.11 4.6% 47,000 230.72 42.30 273.02 243.24 42.30 285.54 12.52 4.6% 48,000 237.01 43.20 280.21 249.94 43.20 293.14 12.93 4.6% 49,000 243.30 44.10 287.40 256.64 44.10 300.74 13.34 4.6% 50,000 249.59 45.00 294.59 263.34 45.00 308.34 13.75 4.7% B-2 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR SF & MF RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 3/4-INCH METER BASE RATE 28.48$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 10,000 GALLONS TIER 2 = 3.35$ FOR 10,001 - 24,000 GALLONS TIER 3 = 4.80$ FOR 24,001 - 48,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 48,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 27.38 - 27.38 28.48 - 28.48 1.10 4.0% 7,000 43.76 6.30 50.06 45.28 6.30 51.58 1.52 3.0% 11,000 54.03 9.90 63.93 55.83 9.90 65.73 1.80 2.8% 28,000 114.40 25.20 139.60 118.58 25.20 143.78 4.18 3.0% 50,000 217.58 45.00 262.58 227.98 45.00 272.98 10.40 4.0% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL CUSTOMERS WITH A 3/4-INCH METER BASE RATE 28.48$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 27.38 - 27.38 28.48 - 28.48 1.10 4.0% 7,000 43.76 6.30 50.06 45.28 6.30 51.58 1.52 3.0% 11,000 53.12 9.90 63.02 54.88 9.90 64.78 1.76 2.8% 28,000 92.90 25.20 118.10 95.68 25.20 120.88 2.78 2.4% 50,000 144.38 45.00 189.38 148.48 45.00 193.48 4.10 2.2% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR SF & MF RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 1-INCH METER BASE RATE 47.46$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 17,000 GALLONS TIER 2 = 3.35$ FOR 17,001 - 40,000 GALLONS TIER 3 = 4.80$ FOR 40,001 - 80,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 80,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 45.63 - 45.63 47.46 - 47.46 1.83 4.0% 17,000 85.41 15.30 100.71 88.26 15.30 103.56 2.85 2.8% 27,000 117.91 24.30 142.21 121.76 24.30 146.06 3.85 2.7% 38,000 153.66 34.20 187.86 158.61 34.20 192.81 4.95 2.6% 50,000 205.46 45.00 250.46 213.31 45.00 258.31 7.85 3.1% B-3 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL CUSTOMERS WITH A 1-INCH METER BASE RATE 47.46$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 45.63 - 45.63 47.46 - 47.46 1.83 4.0% 15,000 80.73 13.50 94.23 83.46 13.50 96.96 2.73 2.9% 27,000 108.81 24.30 133.11 112.26 24.30 136.56 3.45 2.6% 38,000 134.55 34.20 168.75 138.66 34.20 172.86 4.11 2.4% 50,000 162.63 45.00 207.63 167.46 45.00 212.46 4.83 2.3% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 1.5-INCH METER BASE RATE 94.91$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 35,000 GALLONS TIER 2 = 3.35$ FOR 35,001 - 80,000 GALLONS TIER 3 = 4.80$ FOR 80,001 - 160,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 160,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 91.26 - 91.26 94.91 - 94.91 3.65 4.0% 38,000 182.91 34.20 217.11 188.96 34.20 223.16 6.05 2.8% 64,000 267.41 57.60 325.01 276.06 57.60 333.66 8.65 2.7% 90,000 364.71 81.00 445.71 377.66 81.00 458.66 12.95 2.9% 125,000 523.26 112.50 635.76 545.66 112.50 658.16 22.40 3.5% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 1.5-INCH METER BASE RATE 94.91$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 91.26 - 91.26 94.91 - 94.91 3.65 4.0% 30,000 161.46 27.00 188.46 166.91 27.00 193.91 5.45 2.9% 64,000 241.02 57.60 298.62 248.51 57.60 306.11 7.49 2.5% 90,000 301.86 81.00 382.86 310.91 81.00 391.91 9.05 2.4% 125,000 383.76 112.50 496.26 394.91 112.50 507.41 11.15 2.2% B-4 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 2-INCH METER BASE RATE 151.87$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 56,000 GALLONS TIER 2 = 3.35$ FOR 56,001 - 128,000 GALLONS TIER 3 = 4.80$ FOR 128,001 - 256,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 256,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 146.03 - 146.03 151.87 - 151.87 5.84 4.0% 57,000 280.32 51.30 331.62 289.62 51.30 340.92 9.30 2.8% 130,000 520.13 117.00 637.13 537.07 117.00 654.07 16.94 2.7% 250,000 1,063.73 225.00 1,288.73 1,113.07 225.00 1,338.07 49.34 3.8% 325,000 1,524.92 292.50 1,817.42 1,604.17 292.50 1,896.67 79.25 4.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 2-INCH METER BASE RATE 151.87$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 146.03 - 146.03 151.87 - 151.87 5.84 4.0% 57,000 279.41 51.30 330.71 288.67 51.30 339.97 9.26 2.8% 128,000 445.55 115.20 560.75 459.07 115.20 574.27 13.52 2.4% 250,000 731.03 225.00 956.03 751.87 225.00 976.87 20.84 2.2% 325,000 906.53 292.50 1,199.03 931.87 292.50 1,224.37 25.34 2.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 3-INCH METER BASE RATE 303.71$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 112,000 GALLONS TIER 2 = 3.35$ FOR 112,001 - 256,000 GALLONS TIER 3 = 4.80$ FOR 256,001 - 512,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 512,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 292.03 - 292.03 303.71 - 303.71 11.68 4.0% 50,000 409.03 45.00 454.03 423.71 45.00 468.71 14.68 3.2% 150,000 677.61 135.00 812.61 699.81 135.00 834.81 22.20 2.7% 300,000 1,221.43 270.00 1,491.43 1,266.11 270.00 1,536.11 44.68 3.0% 500,000 2,127.43 450.00 2,577.43 2,226.11 450.00 2,676.11 98.68 3.8% B-5 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 3-INCH METER BASE RATE 303.71$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 292.03 - 292.03 303.71 - 303.71 11.68 4.0% 50,000 409.03 45.00 454.03 423.71 45.00 468.71 14.68 3.2% 150,000 643.03 135.00 778.03 663.71 135.00 798.71 20.68 2.7% 300,000 994.03 270.00 1,264.03 1,023.71 270.00 1,293.71 29.68 2.3% 500,000 1,462.03 450.00 1,912.03 1,503.71 450.00 1,953.71 41.68 2.2% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 4-INCH METER BASE RATE 474.56$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 175,000 GALLONS TIER 2 = 3.35$ FOR 175,001 - 400,000 GALLONS TIER 3 = 4.80$ FOR 400,001 - 800,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 800,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 456.31 - 456.31 474.56 - 474.56 18.25 4.0% 300,000 1,272.06 270.00 1,542.06 1,313.31 270.00 1,583.31 41.25 2.7% 550,000 2,276.56 495.00 2,771.56 2,368.31 495.00 2,863.31 91.75 3.3% 700,000 2,956.06 630.00 3,586.06 3,088.31 630.00 3,718.31 132.25 3.7% 850,000 3,723.56 765.00 4,488.56 3,903.31 765.00 4,668.31 179.75 4.0% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 4-INCH METER BASE RATE 474.56$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 456.31 - 456.31 474.56 - 474.56 18.25 4.0% 300,000 1,158.31 270.00 1,428.31 1,194.56 270.00 1,464.56 36.25 2.5% 550,000 1,743.31 495.00 2,238.31 1,794.56 495.00 2,289.56 51.25 2.3% 700,000 2,094.31 630.00 2,724.31 2,154.56 630.00 2,784.56 60.25 2.2% 850,000 2,445.31 765.00 3,210.31 2,514.56 765.00 3,279.56 69.25 2.2% B-6 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 6-INCH METER BASE RATE 949.12$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 860,000 GALLONS TIER 2 = 3.35$ FOR 860,001 - 2,000,000 GALLONS TIER 3 = 4.80$ FOR 2,000,001 - 3,500,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 3,500,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 912.62 - 912.62 949.12 - 949.12 36.50 4.0% 425,000 1,907.12 382.50 2,289.62 1,969.12 382.50 2,351.62 62.00 2.7% 1,000,000 3,380.02 900.00 4,280.02 3,482.12 900.00 4,382.12 102.10 2.4% 1,500,000 5,005.02 1,350.00 6,355.02 5,157.12 1,350.00 6,507.12 152.10 2.4% 2,000,000 6,630.02 1,800.00 8,430.02 6,832.12 1,800.00 8,632.12 202.10 2.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 6-INCH METER BASE RATE 949.12$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 912.62 - 912.62 949.12 - 949.12 36.50 4.0% 425,000 1,907.12 382.50 2,289.62 1,969.12 382.50 2,351.62 62.00 2.7% 1,000,000 3,252.62 900.00 4,152.62 3,349.12 900.00 4,249.12 96.50 2.3% 1,500,000 4,422.62 1,350.00 5,772.62 4,549.12 1,350.00 5,899.12 126.50 2.2% 2,000,000 5,592.62 1,800.00 7,392.62 5,749.12 1,800.00 7,549.12 156.50 2.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 8-INCH METER BASE RATE 1,518.60$ COMMODITY RATE: TIER 1 = 2.40$ FOR 0 - 860,000 GALLONS TIER 2 = 3.35$ FOR 860,001 - 2,000,000 GALLONS TIER 3 = 4.80$ FOR 2,000,001 - 3,500,000 GALLONS TIER 4 = 6.70$ FOR ALL USAGE OVER 3,500,000 GALLONS GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 1,460.19 - 1,460.19 1,518.60 - 1,518.60 58.41 4.0% 425,000 2,454.69 382.50 2,837.19 2,538.60 382.50 2,921.10 83.91 3.0% 1,000,000 3,927.59 900.00 4,827.59 4,051.60 900.00 4,951.60 124.01 2.6% 1,500,000 5,552.59 1,350.00 6,902.59 5,726.60 1,350.00 7,076.60 174.01 2.5% 2,000,000 7,177.59 1,800.00 8,977.59 7,401.60 1,800.00 9,201.60 224.01 2.5% (There are no active 8-inch potable meters in the OVWU system) B-7 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL AND MULTIFAMILY CUSTOMERS WITH A 8-INCH METER BASE RATE 1,518.60$ COMMODITY RATE: TIER 1 = 2.40$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 1,460.19 - 1,460.19 1,518.60 - 1,518.60 58.41 4.0% 425,000 2,454.69 382.50 2,837.19 2,538.60 382.50 2,921.10 83.91 3.0% 1,000,000 3,800.19 900.00 4,700.19 3,918.60 900.00 4,818.60 118.41 2.5% 1,500,000 4,970.19 1,350.00 6,320.19 5,118.60 1,350.00 6,468.60 148.41 2.3% 2,000,000 6,140.19 1,800.00 7,940.19 6,318.60 1,800.00 8,118.60 178.41 2.2% (There are no active 8-inch potable meters in the OVWU system) TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 1.5-INCH METER - RECLAIMED WATER USE BASE RATE 73.08$ COMMODITY RATE: TIER 1 = 2.25$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 =N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 73.08 - 73.08 73.08 - 73.08 0.00 0.0% 50,000 180.58 23.50 204.08 185.58 23.50 209.08 5.00 2.5% 135,000 363.33 63.45 426.78 376.83 63.45 440.28 13.50 3.2% 200,000 503.08 94.00 597.08 523.08 94.00 617.08 20.00 3.3% 250,000 610.58 117.50 728.08 635.58 117.50 753.08 25.00 3.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 2-INCH METER - RECLAIMED WATER USE BASE RATE 116.94$ COMMODITY RATE: TIER 1 = 2.25$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 =N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 116.94 - 116.94 116.94 - 116.94 0.00 0.0% 150,000 439.44 70.50 509.94 454.44 70.50 524.94 15.00 2.9% 240,000 632.94 112.80 745.74 656.94 112.80 769.74 24.00 3.2% 450,000 1,084.44 211.50 1,295.94 1,129.44 211.50 1,340.94 45.00 3.5% 600,000 1,406.94 282.00 1,688.94 1,466.94 282.00 1,748.94 60.00 3.6% B-8 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 3-INCH METER - RECLAIMED WATER USE BASE RATE 233.86$ COMMODITY RATE: TIER 1 = 2.25$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 =N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 233.86 - 233.86 233.86 - 233.86 0.00 0.0% 20,000 276.86 9.40 286.26 278.86 9.40 288.26 2.00 0.7% 80,000 405.86 37.60 443.46 413.86 37.60 451.46 8.00 1.8% 100,000 448.86 47.00 495.86 458.86 47.00 505.86 10.00 2.0% 150,000 556.36 70.50 626.86 571.36 70.50 641.86 15.00 2.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 4-INCH METER - RECLAIMED WATER USE BASE RATE 365.41$ COMMODITY RATE: TIER 1 = 2.25$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 =N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 365.41 - 365.41 365.41 - 365.41 0.00 0.0% 220,000 838.41 103.40 941.81 860.41 103.40 963.81 22.00 2.3% 300,000 1,010.41 141.00 1,151.41 1,040.41 141.00 1,181.41 30.00 2.6% 450,000 1,332.91 211.50 1,544.41 1,377.91 211.50 1,589.41 45.00 2.9% 600,000 1,655.41 282.00 1,937.41 1,715.41 282.00 1,997.41 60.00 3.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A 6-INCH METER - RECLAIMED WATER USE BASE RATE 730.83$ COMMODITY RATE: TIER 1 = 2.25$ FOR ALL WATER USAGE TIER 2 = N/A TIER 3 =N/A TIER 4 = N/A GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED 1 MONTH BILL BILL INCREASE 0 730.83 - 730.83 730.83 - 730.83 0.00 0.0% 900,000 2,665.83 423.00 3,088.83 2,755.83 423.00 3,178.83 90.00 2.9% 5,000,000 11,480.83 2,350.00 13,830.83 11,980.83 2,350.00 14,330.83 500.00 3.6% 10,000,000 22,230.83 4,700.00 26,930.83 23,230.83 4,700.00 27,930.83 1,000.00 3.7% 15,000,000 32,980.83 7,050.00 40,030.83 34,480.83 7,050.00 41,530.83 1,500.00 3.7% 20,000,000 43,730.83 9,400.00 53,130.83 45,730.83 9,400.00 55,130.83 2,000.00 3.8% B-9 APPENDIX C 5-Year Capital Improvement Schedules C-1 Operating Fund C-2 Groundwater Preservation Fee C-3 Water Resource and System Development Impac t Fee Fund C-1 C-2 C-3 APPENDIX D Assumptions for Proposed Financial Scenario D-1 Operating Fund D-4 Water Resource and System Development Impact Fee Fund PROPOSED FINANCIAL SCENARIO ASSUMPTIONS FOR THE WATER UTILITY’S OPERATING FUND The Operating Fund is the primary fund for the Water Utility. The sources of revenue are water sales, service related charges and Groundwater Preservation Fees (GPF). Expenses for administration, operations, existing system improvements and debt service are accounted for i n this fund. Beginning Cash Balance The beginning cash balance is estimated based on budgeted revenues, expenses and known cost over runs for FY 2020 -21. Actual cash balances on the 6/30/20 balance sheet are added to budgeted revenues, less budgeted expe nses and known unbudgeted expenses. Cash Reserve Requirement Mayor and Town Council Water Policies require the Utility to maintain cash reserves in the Operating Fund of not less than 20% of the combined total of the annual budgeted amounts for personnel, O&M and debt service. This specifically excludes expenses for capital projects, depreciation, amortization and contingency. Growth Projections New Development growth projections for FY 2021 -22 through FY 2025-26 were based on data provided by the Town’s New Development Permitting Manager and were updated with information from the Town’s Finance Department to be consistent with the Town’s financial forecasting. Connections FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Single Family Residential 328 290 215 145 145 Irrigation 4 4 4 4 4 Water Sales and Water Use Consumption Trends The average monthly water consumption for a residential customer with a 5/8 -inch water meter in 2019-20 was 7,200 gallons per month. To account for the overall average continued decline in water consumption, this analysis assumes 7,000 gallons per month. Projected reclaimed deliveries are based on 2019-20 data. Service Related Revenues Service related revenues are based on the proposed FY 2021-22 budget. Service related revenues include billing for sewer fees on behalf of Pima County Wastewater and t he Town’s Storm Water Department. Additionally, other service related revenues include: late fees, reconnect fees, new service establishment fees, backflow permitting fees, engineering plan review fees and construction inspection fees. Groundwater Preserv ation Fees (GPF) GPF revenues are based on the water consumption for FY 2019 -20. The GPF funds are dedicated to pay for water resources other than groundwater as it relates to debt service, capital costs, CAP delivery costs and water wheeling. Interest Income Interest rates are projected at 1.5% annually over the 5 -year pro forma. The projected interest rate was provided by the Town’s Finance Department. D-1 PROPOSED FINANCIAL SCENARIO ASSUMPTIONS FOR THE WATER UTILITY’S OPERATING FUND (continued) Personnel No new employees were added during the projection period. The following increases were provided by the Town’s Finance Department and are consistent with Town financial forecasting: the annual merit increase is projected to be 2% annually and health care costs are projected to increase by .50% annually. It is projected that the Arizona State Retirement System (ASRS) contribution is projected to increase 2% annually over the five -year projection period. Inflation Rates Inflation rates are projected at 2% annually over the 5-year pro -forma. The projected inflation rate was provided by the Town’s Finance Department. O&M Potable Expenses These expenses are based on the Water Utility’s proposed budget for FY 2020 -21 plus 2% inflation. O&M Northwest Recharge, Recovery & Delivery System (NWRRDS) Expenses - Potable This expense is based on the assumption that the NWRRDS project will begin p artial operations in FY 2023-24 with estimated costs in the first year of $160,000. In future years costs are estimated at $800,000. O&M CAP Wheeling Expenses - Potable This expense includes the fees charged by Tucson Water to wheel the Town’s CAP wate r through their recharge and recovery system in accordance with an IGA. The increases are projected to be 4% annually over the 5 -year pro forma . It is also assumed that the Utility will wheel 2,510 AF annually for the first 4 years. In FY 2025 -26 the NWRRDS system will be in operation; therefore, CAP wheeling can be reduced to 950 acre feet. O&M CAP Recharge Expenses - Potable This expense is based on the rate schedule adopted by CAP 6/4/20. The figures represent the annual expense to deliver the Utility’s entire allotment of CAP water (10,305 AF) for recharge. Fiscal Year 2023/24 in cludes increased costs due to the projected Tier 1 shortage. O&M Reclaimed Expenses Pursuant to the existing IGA, the reclaimed water is delivered at an interruptible rate. Fiscal Year 2021/22 includes Tucson Water’s 17% one-time rate adjustment due to the implementation of Tucson Water’s updated reclaimed cost allocation model. The Town delivers more reclaimed water than it is entitled to. To cover this shortfall a cost t o purchase additional reclaimed water from Tucson Water has been included annually. Additionally, the O&M expenses include allocations for personnel, administrative costs and fleet service costs. The reclaimed cost allocation model was used to allocate these costs using a variety of methodologies. O&M CAP Capital Expenses This expense is paid for from the GPF funds and is based on 7,305 AF per the rate schedule adopted by CAP 6/04/20. D -2 PROPOSED FINANCIAL SCENARIO ASSUMPTIONS FOR THE WATER UTILITY’S OPERATING FUND (continued) Capital Improvement Program (CIP) – Existing System Improvements The capital costs associated with the Existing System Improvements CIP are primarily to ensure continued water systems reliability and efficiency. These costs are determined as part of an annual review of the water system. The 5-year pro forma includes cash funding $1.25 million per year in capital costs for existing system improvements. Capital Improvement Program (CIP) – NWRRDS A portion of the capital costs associated with the NWRRDS CIP are paid for by GPF funds. The NWRRDS CAP delivery system will be capable of d elivering up to an additional 4,000 acre feet per year of CAP water into Oro Valley’s water service area. The 5 year pro forma is based on Engineering cost estimates. New debt of $7 million is included in the pro forma in FY 2022/23 for the NWRRDS project. Debt Service The following table identifies the existing debt service included in this pro forma: Bonds Type Description Amortization Schedule By 2008 Sr. Lien Reclaimed Ph. 2 WIFA 2009 Sr. Lien Existing System CIP WIFA 2012 Sr. Lien Refunding (Reclaim Ph. 1) Stone & Youngberg 2012 Sr. Lien Refunding (2003) Stone & Youngberg 2014 Sr. Lien AMI Project WIFA 2015 Excise Tax Refunding (2005) Stifel & Nicolaus & Co. 2017 Excise Tax Refunding (2007) Stifel & Nicolaus & Co. 2018 Excise Tax Existing System CIP Stifel & Nicolaus & Co. 2021 Sr. Lien Refunding Stifel & Nicolaus & co. Minimum Debt Service Coverage Requirement 1.30 debt service coverage ratio for 2012 Sr. Lien Bonds & all WIFA Loans D -3 PROPOSED FINANCIAL SCENARIO ASSUMPTIONS FOR THE WATER UTILITY’S WATER RESOURCE AND SYSTEM DEVELOPMENT IMPACT FEE (WRSDIF) FUND The WRSDIF fund accounts for development impact fees that are collected at the time a new water meter is purchased. This impact fee is intended to fund costs for water resources, the infrastructure to deliver those resources and any related debt includi ng CAP capital infrastructure repayment related to new development. Beginning Cash Balance Beginning cash balance is estimated based on budgeted revenues, expenses and known cost over runs for FY 2020 -21. Actual cash balances on the 6/30/20 balance sheet are added to budgeted revenues, less budgeted expenses. Growth Projections New Development growth proje ctions for FY 2021-22 through FY 2025-26 were based on data provided by the Town’s New Development Permitting Manager and were updated with information from the Town’s Finance Department to be consistent with the Town’s financial forecasting. Service Units FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 Single Family Residential SU’s 328 290 215 145 145 Other SU’s 10 10 10 10 10 WRSDIF Impact Fee Revenue The new impact fees will be $6,387 per service unit effective on July 1, 2021. Interest Income Interest rates are projected at 1.5% annually over the 5 -year pro forma. The projected interest rate was provided by the Town’s Finance Department. O&M CAP Capital Expenses This expense is based on 3,000 AF per the rate schedule adopted by CAP on 6/4/20. Capital Improvement Program (CIP) – NWRRDS A portion of the capital costs associated with the NWRRDS CIP are paid for by the WRSDIF Impact fees. The NWRRDS CAP delivery system will be capable of delivering up to an additional 4,000 acre feet per year of CAP water into Oro Valley’s water service area. The 5 year pro forma is based on Engineering cost estimates. Debt Service The following table identifies the existing debt service included in this pro forma: Bonds Type Description Amortization Schedule By 2012 Sr. Lien Refun ding (2003) Stone & Youngberg 2021 Sr. Lien Refunding Stifel & Nicolaus & co. Debt Service Coverage 1.30 debt service coverage ratio for 2012 & 2021 Sr. Lien Bonds D-4 APPENDIX E Development Impact Fee Schedule E-1 Water Resource and System Development Impact Fees    Town Council Regular Session C. Meeting Date:03/03/2021   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Approval of appointment to the Stormwater Utility Commission RECOMMENDATION: Stormwater Utility Commmission  (SWUC) The Stormwater Utility Commission has one vacancy. The SWUC interview panel has recommended the following appointment to fill a partial term expiring December 31, 2021. William Thomas EXECUTIVE SUMMARY:  N/A  BACKGROUND OR DETAILED INFORMATION: The application for the prospective new board and commission member is attached.  FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE that the following appointment to the Stormwater Utility Commission (SWUC) be made effective March 4, 2021 to fill a partial term and that this partial term shall not be counted against the term limits established by the Town Council Parliamentary Rules and Procedures. Stormwater Utility Commission (SWUC) William Thomas for a partial term expiring December 31, 2021 Attachments William Thomas Application  Submit Date: Feb 13, 2021 First Name Middle Initial Last Name Suffix Email Address Street Address Suite or Apt City State Postal Code Primary Phone Alternate Phone Town of Oro Valley Boards & Commissions Profile Are you a full time Oro Valley resident (resides in Oro Valley 6 or more months a year) * Yes Number of years in Oro Valley (If less than 1 year, please state number of months) 5 mo Which Boards would you like to apply for? Storm Water Utility Commission: Submitted Interests & Experiences Please list your volunteer services in Oro Valley and with other organizations including any boards or commissions on which you have served : (board/commission , civic, educational, cultural, social, etc.) No direct board/commission experience due to recent retirement after 35 years in international business and program/operations management. However I have been a youth basketball and soccer Coach within the Tucson area for 10+ years. How does your previous volunteer service prepare you for the board or commission appointment for which you have applied? Please describe an issue considered at a meeting of the Board or Commission for which you are applying. N/A Briefly describe your educational/vocational background. BS/MIS-Operations Management MA/Organizational Management Certified Proposal Manager Multiple Professional Education Certifications William Thomas Jr AZ 85755 William Thomas Jr Upload a Resume Please attach any additional documents here Question applies to Planning and Zoning Commission Please describe an issue or project you contributed to which related specifically to conceptual design? During my Hughes/Raytheon employment I was assigned to participate on multiple building/facility re- design efforts. Question applies to Planning and Zoning Commission For each selection you made above, please provide your years of experience and a generalized description of your professional design background in that area. While I have no direct education or experience in planning/zoning matters, what I do bring to the table is a strong critical thinking and analytical point of view as well as a strong business/management acumen which will allow me to provide creative and insightful recommendations to address issues. Have you attended the Community Academy or CPI? Yes No If yes, what year? 2021 If no, are you willing to attend? Yes No Please Agree with the Following Statement I agree that the information provided in my application is true and correct I Agree * William Thomas Jr    Town Council Regular Session 1. Meeting Date:03/03/2021   Requested by: Judith Boros Submitted By:Judith Boros, Human Resources Department:Human Resources SUBJECT: DISCUSSION AND POSSIBLE ACTION TO APPROVE RESOLUTION NO. (R)21-10, APPOINTING JUDGE JAMES HAZEL JR AS THE ORO VALLEY MAGISTRATE JUDGE AND APPROVING AN EMPLOYMENT AGREEMENT, EFFECTIVE APRIL 19, 2021 RECOMMENDATION: N/A EXECUTIVE SUMMARY: Due to the pending retirement of Judge George Dunscomb, the Oro Valley Town Council conducted a competitive recruitment to fill the position of Town Magistrate.  The Town Council will consider the appointment of Judge James Hazel Jr at the March 3, 2021 Council meeting. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve or deny) Resolution (R)21-10, appointing Judge James Hazel Jr. as the Oro Valley Magistrate Judge and approving an employment agreement, effective April 19, 2021. Attachments (R)21-10 Magistrate Resolution  Employment Agreement  RESOLUTION NO. (R)21-10 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN EMPLOYMENT AGREEMENT FOR THE TOWN MAGISTRATE, JAMES W. HAZEL JR.; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SER VICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, The Employment Agreement for George Dunscomb, Town Magistrate, terminates on April 6, 2021; and WHEREAS, it is the desire of the Town to enter into a new Employment Agreement with James W. Hazel Jr., Town Magistrate, for the period of April 19, 2021, through April 19, 2023; and WHEREAS, it is in the best interest of the Town to enter into the Employment Agreement with James W. Hazel Jr., attached hereto as Exhibit “A” and incorporated herein by this reference, in order to set forth the terms and conditions of the Employment Agreement. NOW, THEREFORE BE IT RESOLVED by the Mayor and Council of the Town o f Oro Valley, that: SECTION 1. The Employment Agreement between the Town of Oro Valley and James W. Hazel Jr., attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby authorized and approved. SECTION 2. The Mayor and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Employment Agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Resolution 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. SECTION 5. All Oro Valley Resolutions, or Motions and parts of 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 3rd day of March, 2021. TOWN OF ORO VALLEY ____________________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ____________________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director _____________________________ ____________________________________ Date Date EXHIBIT “A” TOWN MAGISTRATE EMPLOYMENT AGREEMENT THIS AGREEMENT made and entered into this 3rd of March, 2021 by and between the Town of Oro Valley, an Arizona municipal corporation (hereinafter “Town”) and James W. Hazel Jr (hereinafter “Magistrate”). Pursuant to this agreement, Town herewith employs James W. Hazel Jr as Town Magistrate for the Town of Oro Valle y. Magistrate shall be deemed an employee of the Town pursuant to this agreement, and not an independent contractor. This contract shall commence on April 19, 2021 and continue for a TWO (2) YEAR PERIOD from said date as provided by law and as set forth b y Oro Valley Town Code Section 5-2-1 as amended. During the Magistrate’s term of office, Magistrate may be removed by the Town Council only for cause. The position is full -time, exempt, non-merit and at-will. This employment agreement is subject to the fo llowing additional terms and conditions: 1. Magistrate will fulfill the duties of the Town Magistrate as provided by the State statutes, the Oro Valley Town Code Ordinances , and the job description , and as defined by Arizona state law and the Arizona Supreme Court guidlelines. Magistrate agrees to fulfill all judicial duties and will provide competent and reasonably prompt decisions . Magistrates are expected to uphold and exhibit the shared employee values of politeness, honesty, respect for others and integrity at all times. 2. The Magistrate position is classified as a full -time, exempt employee of the Town and shall devote such time as is necessary and appropriate to conduct the court business and manage the court resources to the highest degree possible. 3. Ma gistrate will assume the responsibilities of running the Magistrate court system, including all court processes, hardware or software systems, necessary personnel and equipment during the period of his employment. Such responsibilities shall carry with the m all powers and duties normally associated with such position. 4. Magistrate shall be entitled to travel reimbursement (other than commuting) in accordance with Town Standard Operating Procedures or Administrative Directives. Magistrate and staff shall be entitled to provisions of the Oro Valley Town Code, regulations and Personnel Policies and Procedures relating to working conditions; vacation, paid holidays, and sick leave; participation in other employee benefit programs including retirement/pension plan, medical, dental, life and disability insurance under the same terms and conditions as are available to all other Town employees; and pay adjustments as they now exist, or as they may be amended for the other exempt employees of the To wn of Oro Valley, to the extent that they are consistent with the terms of this agreement. Finally, the Magistrate shall receive a salary adjustment on each anniversary date of this agreement for an amount equal to the highest merit increase percentage app roved (if any) for other exempt employees in a given fiscal year. 5. Magistrate shall also be responsible for compliance with all Town policies, rules, and regulations regarding purchasing, money management , courtroom and staff security; hiring, firing, and personnel management; budgetary and financial constraints; and any such other local, state or federal regulations to the extent that these do not conflict with Supreme Court Rules and Arizona case law. 6. Employer shall pay for mandatory and reasonable costs for professional dues, training, memberships and subscriptions of Employee, subject to Town Manager and Town Council budgeting approval and appropriate approved budget constraints. 7. The Town Council and Employee shall from time to time define such goals and performance objectives necessary for the proper operation of the Town of Oro Valley Municipal Court in accordance with the Town Council’s policy objectives and Town Code. The Town Council shall make reasonable efforts to formally evaluate Employee's performance annually within 30 days of anniversary date of Employee’s appointment as Town Magistrate , or as otherwise agreed upon by Employee and Employer. 8. Town agrees to pay Magistrate during the two years of this agreement the sum of ONE HUNDRED SIXTY THOUSAND dollars ($160,000) PER ANNUM, $76.9231 hourly, subject to future adjustments as noted in item 4, above. Such amount shall be payable to the Magistrate in installments at the same time and in the same manner as other salaried employees on a bi -weekly basis and shall be subject to FICA, Social Security and other legally required withholdings. In the event Magistrate voluntarily chooses to serve less than his full term or is terminated for cause; the pay shall be pro -rated accordingly by budget year. Should Magistrate voluntarily decide to serve less than the full term of this agreement, he shall give a minimum of thirty (30) days’ notice unless exempted from this provision by the Town Council. Upon annual evaluation of Employee by the Town Council, the Employee will be entitled to the same relative merit increase as other employees or the Employee may be adjusted upward at the sole direction of the Town Council upon satisfactory job performance. If an annual cost of living, compression, or competitive pay adjustment is approved for all employees of Employe r, such adjustment will automatically apply to Employee’s salary at the same time and in the same manner as it would to other salaried employees of the Employer. 9. Employee shall devote full time to the business of Employer, and shall neither accept nor engage in outside activities, whether paid or unpaid, which would interfere with Employee's responsibilities to Employer without approval of the Town Manager. Employe e will be available telephoni cally outside work hours for the issuance of search warrants or other necessary legal documents by the Town Police Department or other law enforcement agencies . 10. Any changes to this contract must be agreed to by both parties. Notice pursuant to this agreement shall be given as follows: A. Employer Town Clerk’s Office Town of Oro Valley 11000 N. La Canada Drive Oro Valley, AZ 85737 B. Employee Town Magistrate’s Office Town of Oro Valley 11000 N. La Canada Drive Oro Valley, AZ 85737 IN WITNESS WHEREOF, the Town of Oro Valley caused this agreement to be signed and executed in its behalf by Joseph Winfield, Mayor of the Town of Oro Valley, and duly attested by its Town Clerk, and Employee has signed and execu ted this agreement, both in duplicate, the day and year first above written. ____________________________ Joseph Winfield, Mayor ___________________________ James W. Hazel Jr, Magistrate ATTEST: ___________________________ Michael Standish, Town Clerk APPROVED AS TO FORM: _______________________________ Tobin Sidles, Legal Services Director    Town Council Regular Session 2. Meeting Date:03/03/2021   Requested by: Mary Jacobs Submitted By:Mary Jacobs, Town Manager's Office Department:Town Manager's Office SUBJECT: PRESENTATION, DISCUSSION AND POSSIBLE ACTION REGARDING THE PUSCH GOLF COURSE IMPLEMENTATION PLAN RECOMMENDATION: Staff recommends the Town Council review the proposed major action timetable presented and provide any input or direction on further modifications as warranted.   EXECUTIVE SUMMARY: On February 17, 2021 the Town Council voted to operate the Pusch golf course for three years, provided the Town is not successful in leasing the course to an outside operator.  In addition, the Council also asked staff to develop and present a framework for how this action will be accomplished, including timing of the lease RFP option, how it’s continued feasibility will be evaluated, and the opportunities to reduce water usage or consider potential new configurations.      Attached is a Gant chart showing the major actions during the three-year period and the recommended timetable for each, with notable decision points highlighted.  A memorandum with more detail behind the major action is also attached.  This list of major actions is not intended to identify every task necessary to implement the Town Council's direction, but rather show the general timetable over the three-year period.  This information will be presented to the Town Council on March 3 for input and possible action, if needed. BACKGROUND OR DETAILED INFORMATION: See attached Gant chart and memorandum. FISCAL IMPACT: Fiscal impact of operating the course was provided to the Town Council via their agenda of February 17, 2021.   SUGGESTED MOTION: No formal action necessary at this time. Attachments Pusch Course Framework and Recommended Timetable  Pusch Course Framework and Recommended Timetable Memorandum  Pusch Golf - Major Action Framework and Recommended Timetable FY20/21 FY21/22 (Year 1)FY22/23 (Year 2)FY23/24 (Year 3) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J A Finalize course budget; approval by Town Council B Finalize HOA agreement; approval by Town Council C Contract for and complete pump, irrigation and cart path repairs D All other preparations for opening course (lease carts, order supplies, etc.) E Course open F Research and prepare lease RFP G Advertise, evaluate lease RFP H Decision Point - Lease or proceed with golf ** I If Lease, finalize terms, Council approval and implement July 1 J Analyze course operations K Research & develop turf/water reduction options, other operational improvements, market conditions & cost estimates/ROI L Present options/strategies to Council M Decision Point for post-Year 3 if no lease ** N Implement Decision of Council post-Year 3 → Denotes Actions if Lease is Successful Denotes Continuing Actions if Lease Unsuccessful MAJOR ACTION DATE: February 24, 2021 MEMO TO: Mayor Winfield and Members of the Town Council FROM: Mary Jacobs, Town Manager Chris Cornelison, Assistant Town Manager SUBJECT: Pusch Course Major Action Framework and Recommended Timetable BACKGROUND On February 17, 2021, the Town Council voted to operate the Pusch golf course for three years, provided the Town is not successful in leasing the course to an outside operator. In addition, the Council also asked staff to develop and present a framework for how this action will be accomplished, including timing of the lease RFP option, how it’s continued feasibility will be evaluated, and the opportunities to reduce water usage or consider potential new configurations. Please refer to the attached Gant chart showing the major actions during the three-year period and the recommended timetable for each, with notable decision points highlighted. The information below describes the tasks in more detail, where warranted. This item is being scheduled for your March 3, 2021 regular meeting. MAJOR ACTIONS/TIMETABLE A. Finalize course budget; approval by Town Council. April – June 2021 (Gant chart shows similar timetable for the following fiscal years depending on lease option and final year decision.) B. Finalize HOA agreement; approval by Town Council. March – May 2021 The adjacent HOAs have pledged a total of $34,050, which requires various levels of board or HOA membership approval. Staff will present to the HOAs an agreement similar to the one executed with the HOAs adjacent to the 36 holes, and following their approval, present it to the Town Council by the end of May. C. Contract for and complete pump, irrigation, and cart path repairs. June – September 2021 Indigo Golf and Town staff will research, contract for and implement the planned capital improvements necessary to successfully reopen the course following adoption of the FY21/22 budget. D. All other preparations for opening course. June – October 2021 Indigo will identify the most advantageous option for leasing carts for the coming golf season, as well as make other preparations needed to reopen the course on schedule. (Gant chart shows similar timetable for the following years depending on lease option and final year decision.) E. Course open. November 2021 – April 2022 The course will open on or about November 1 for the winter/spring season. (The Gant chart shows the projected opening for the following two fiscal years if a lease is not successful.) F. Research and prepare lease RFP. August – October 2021 Staff recommends that the Town schedule the release of the RFP for November 1, 2021 (or later) as the most advantageous time to attract a prospective bidder. The course will be in top shape, and Indigo management staff will also have some experience under their belt in operating the course. This will allow the Town to be in the best position to identify and/or address questions that prospective bidders may have in the operation of the 9-hole course, given Indigo has not yet had the experience in their new role as the golf management vendor. The timing of the RFP release will also allow the Town to do some preparation in identifying potential bidders, and place distance between the period of uncertainty of the course to make the opportunity more attractive. G. Advertise and evaluate lease RFP. November - December 2021 The RFP would be advertised at the beginning of the month for approximately 4 weeks, followed by staff evaluation of proposals. Summary information/recommendation would be presented to the Town Council following the evaluation, to the extent allowed by the Town’s Procurement Code. H. Decision Point – Lease Option. January 2022 If a successful bidder is identified, the Town Council will then be asked to direct staff to finalize negotiations for a prospective lease and provide direction on any policy or financial commitments, if needed. If a lease is not feasible or there are no qualified proposals, staff and Indigo will proceed with finalizing the Pusch course budget for incorporation in the FY22/23 Recommended Budget. I. If Lease, finalize terms, Council approval, and implement. February - June 2022 Following Town Council direction, staff will finalize terms and lease document with prospective lessor and bring back to the elected body for adoption with a target date of July, 1, 2022. J. Analyze Course operations. May – June 2022 and May – June 2023 While there will be ongoing monitoring of the Pusch 9 golf course during its normal operation, at the end of both the first and second full year of seasonal operation, staff will complete an analysis of the operations and current market conditions. Staff will then work with Indigo in accordance with the Town’s contractual obligations to modify/adjust as appropriate. The analyses will also help inform opportunities to target research of options for continuing golf post-Year 3 outlined in step K below. K. Research and develop turf/water reduction options, other operational improvements, market conditions & cost estimates/ROI. July – December 2023 Golf play has increased during the pandemic, but it is unclear whether this will be a sustained or temporary market change. Waiting until Year 3 to analyze the potential options will allow for a settling of the market before committing significant staff resources to this research and option development effort. It will also allow for obtaining information from the Hilton/HSL regarding the resort’s recovery and likelihood that a financial contribution by HSL is feasible toward the operations. Further, it will allow for more data to be collected from the planned irrigation replacement of the 36 holes and the effect the system has on water use. Finally, the Community Center Fund is not expected to have resources available until at least Year 4, depending on the level of investment required. This timetable will ensure the development of options and resulting decision point will be done once, closer to the timing for an appropriation that can be incorporated into the FY23/24 budget, assuming the fund has capacity. The six-month period will also allow for appropriate input. L. Present options/strategies. January 2024 Staff will present the potential options for course investment noted in Item K above for discussion. M. Decision Point for post-Year 3. February 2024 Town Council will provide direction to staff on the future of the Pusch 9 course so that the implementation can be incorporated in the FY24/25 budget (or beyond). N. Implement decision of Council for post-Year 3. March 2024 – until completed. SUMMARY The proposed timetable of major actions outlines the staff’s recommended approach to reinstating golf in the fall, issuing an RFP at a time designed to be most advantageous to soliciting a prospective lessor, and evaluating/developing options post-Year 3 on a schedule that coincides with the most effective use of staff and the availability of resources to fund such investments. In the meantime, the course will be appropriately watered to ensure the conditions remain such that winter overseeding can proceed in October as planned. The Town has also retained the services of two contractors who will be performing additional landscape maintenance and gopher mitigation on the property in the coming weeks. Staff will be prepared to answer clarifying questions at the upcoming Town Council meeting.    Town Council Regular Session 1. Meeting Date:03/03/2021   Requested by: Kristy Diaz-Trahan  Submitted By:Kristy Diaz-Trahan, Parks and Recreation Department:Parks and Recreation SUBJECT: PRESENTATION AND DISCUSSION REGARDING THE PARKS AND RECREATION MASTER PLAN UPDATE RECOMMENDATION: N/A EXECUTIVE SUMMARY: The purpose of this item is to provide an update to Town Council and receive feedback regarding Phase II of the Parks & Recreation Master Plan. As part of the Phase II effort, tonight's update includes information regarding prioritized needs, park classifications, levels of service standards, equity mapping, Connectivity Analysis (trails), concept plans, Capital Improvement Plan and next steps. The Town's consultant, PROs Consulting, presented concept plans for the Community Center, Steam Pump Ranch, James D. Kriegh Park, Riverfront Park and Naranja Park at the Parks & Recreation Advisory Board (PRAB) meeting on November 17, 2020. These plans were posted to the Town of Oro Valley website for public input from November 18 through December 18, 2020. There were 281 comments submitted with more than 40 additional comments sent directly to staff and/or Town Council. Town staff also met with sports group stakeholders regarding the plans. Based upon all the community feedback, modifications were made to the initial concept plans, which will be presented tonight. The Capital Improvement Program (CIP) contains a large projected cost associated with: (1) lifecycle replacement and repair of existing facilities; (2) connectivity analysis; and (3) the concept plans. The CIP is categorized into three "buckets:" (1) sustainable, (2) expanded services, and (3) visionary. Initial cost estimates based on 2021 construction costs total $62,115,000. A preliminary project priority list was presented to the PRAB on January 19, 2021, with a cost of $40,650,000. BACKGROUND OR DETAILED INFORMATION: The Oro Valley Town Council Strategic Leadership Plan (FY19/20 – FY20/21) Goal 2A states, “Invest in and maintain a high quality parks, recreation and trail system that is accessible, comprehensive, connected and serves the community’s needs.” Six (6) Objectives were identified, three (3) specific to this Council Communication as it relates to the Parks & Recreation Master Plan:   1. Conduct a comprehensive, community-wide needs assessment for parks and recreation amenities and programs, including such things as sports fields, courts, play structures, water/splash features and community space, to help inform future investment decisions and plans. 2. Using the needs assessment information, develop a comprehensive, Town-wide Parks and Recreation Master Plan with input from the community, including individual plans for the Community Center, James D. Kriegh Park, Riverfront Park and Naranja Park. 3. Review the Steam Pump Master Plan and Needs Assessment, and prioritize capital investments and programming opportunities consistent with community and Town Council input. In September 2019, the Town issued a Request for Proposals for a Parks and Recreation Needs Assessment and In September 2019, the Town issued a Request for Proposals for a Parks and Recreation Needs Assessment and Master Planning Consultant . As a result of the competitive bid process, the Town received four (4) formal submittals, leading to the selection of PRO’s Consulting. The project was structured to be split into two phases:   Phase I - A Needs Assessment in FY 19/20 Phase II - A Comprehensive Master Plan in FY 20/21 The Needs Assessment in Phase I was intended to identify the needs of the community that create the foundation for future development of recreational facilities and opportunities for the Town over the next 10 years. The primary outcomes of this phase included the evaluation of the existing parks, trails and open space system, as well as the documentation of priorities and needs of the current and projected population growth based on data-driven input. The Phase I work was completed with results being presented to the Parks & Recreation Advisory Board (PRAB) on May 19, 2020, and to Town Council on May 20, 2020. Information from the needs assessment was analyzed and is being used to assist in the development of Phase II, the Comprehensive Master Plan. As a result of the Town Council discussion and community input, a significant change to the scope of work was made in adding a Connectivity Analysis, which will be included in the final plan.   Phase II tasks include the following:  Park Classifications and Level of Service Standards – Review, confirm, modify or add to existing park classifications, and preferred facility standards for all park sites. Classification considers size, population served, length of stay and amenity types. Level of Service Standards will incorporate the information gathered through inventory and community input to measure the level of service currently being provided. The PROs Consulting team will analyze how this information reconciles and will include relevant alternative recreation facilities and potential partners (schools for example) to provide an analysis of duplication of services and to identify opportunities for collaborative efforts. Connectivity Analysis – The PROs Consulting team will participate in discussions with the Town regarding potential trail connections, collectively brainstorm options to improve connectivity, and explore the feasibility of meeting unmet needs as defined by Phase I. Geographical Analysis/Equity Mapping – Identify service area analysis for specific facilities and programs, to include mapping by classification and major amenities by facility standards that are applied to population density and geographic area. Prioritized Facility and Program Priority Rankings – Synthesize the findings from community engagement, standards, demographics, trends, etc. The priority listing will be compared against gaps or surplus in recreation services, parks, facilities and amenities, which will provide guidance for the future Capital Improvement Plan. A set of prioritized recommendations for maintenance and renovations of existing facilities will also be developed. Recreation Programming Assessment – Identify how well existing programs and events align with community needs. Will include the creation of a dynamic recreation program plan that results in increase registration, drives customer retention and loyalty, improves customer satisfaction and increases revenue. Resource and Funding Analysis (Pricing Policy/Cost Recovery) – Will look at the budget, pricing policy, user fees, current and other revenue generating opportunities, grants, and the revenue forecast. A recommendation for updating the department's current fee philosophy and pricing model will be included. Partnership Review – Identify and expand partnerships/volunteer support for facilities and services, as well as review and suggest new rules/regulations related to parks. Specifically, identify opportunities for Town/school partnerships and Town/business partnerships to include programs, land, facility improvements and future development. Capital Improvement Plan (CIP) – Develop a three-tiered plan that will assist in balancing priorities and associated expenditure.  Sustainable – Maintenance projects, lifecycle replacement and repair of existing facilitiesa. Expanded Services – Strategic park system changes to identify extra services or capital improvement projects, which includes strategically enhancing and renovating existing parks and facilities to better meet the needs of the residents as identified in Phase I. However, it will likely require additional operational and/or capital funding. b. Visionary – Represents the complete set of services and facilities desired by the community. It is fiscally unconstrained, but can help provide policy guidance by illustrating the ultimate goals for the parks and recreation system by providing a long-range look to address future needs. It will address potential deficiencies that may also represent the potential acquisition for new park. c. Funding and Revenue Strategies for CIP – Funding strategies will be reviewed for recommendation and will include: fees for service; endowments; sponsorships; partnerships; dedicated funding sources; development agreements; earned income options; land or facility leases; grants. Conceptual Site Plans – Based on results from Phase I community engagement, conceptual site plans for Naranja Park, Riverfront Park, James D. Kriegh Park, the Community Center and Steam Pump Ranch will be developed and will include estimated capital and operational costs. Develop Vision, Mission, Goals/Objectives – The existing vision and mission will be affirmed and/or redeveloped. Action strategies will be identified and will be outlined in a strategy matrix with priorities, timelines, measurements, and teams within the Town or external partners to focus on. The PRAB met on October 20, 2020, to discuss Master Plan components related to:  Prioritized Needs related to (1) Recreation Programs and Services, and (2) Park, Facility and Amenities. Levels of Service related to amenity inventory and standards being met or if a need exists Equity Mapping visual review of facility type and location Concept Plan Framework reviewed facility changes/modification based on community engagement results The consultant team presented concept plans for the Community Center, Steam Pump Ranch, James D. Kriegh Park, Riverfront Park and Naranja Park at PRAB's November 17, 2020 meeting. These plans were posted to the Town of Oro Valley website from November 18 through December 18, 2020, for public comment. There were 281 comments submitted with an more than 40 additional comments sent directly to staff and/or council.   Based on this public input, including Town staff meetings with representatives from the Sports Alliance and other parks power user groups, updates to the concept plans have been made and are attached. Highlights include:   Community Center (outdoor)  Positive feedback regarding pickleball court expansion and tennis court upgrades Improved parking lot Children play area Not included/changed – basketball courts and EV charging stations Community Center (inside)  Positive feedback to increase recreation and fitness space Reduce the size of the bar to increase seating Outdoor covered patio Improved locker/shower facilities (golf side) Not included – keeping restaurant upstairs Steam Pump Ranch  No additional lawn Parking challenges – encourage non-vehicular travel Honor the historic significance of the site Continue heritage plantings/native orchards Not included – children’s play structure James D. Kriegh Park  Positive feedback of new playground, off-leash dog park, expansion of aquatic center and parking connections Consider adding lights to walking loop Additional basketball courts Lighting sand volleyball court Noise/light considerations for neighbors Not included – keeping racquetball courts Riverfront Park  Positive feedback of splash pad and updated playground Concern regarding removal of multi-use fields (note they will remain) Additional basketball court Lighting sand volleyball court Relocate expanded parking Not included – converting rectangle fields to diamond fields Naranja Park  Positive feedback of skate park, pump track and splash pad Consider adding walking path around the park and more dirt trails Consider adding more pickleball courts Archery course remains intact Not included – diamond fields Connectivity Analysis work will include (1) identifying missing trail segments, (2) identify opportunities to generally expand the trail system and (3) prioritize the opportunities to better connect and expand the trails system. The system creates a non-motorized mode of transportation from north Oro Valley to south Oro Valley and connects to existing trails, to parks, to schools and to other jurisdictional systems.   The Capital Improvement Program (CIP) will begin with the magnitude of cost associated with (1) lifecycle replacement and repair of existing facilities, (2) connectivity analysis, and (3) the concept plans. The CIP is categorized into three (3) buckets: (1) sustainable, (2) expanded services, and (3) visionary. Initial cost estimates based on 2021 construction costs total $62,115,000. A preliminary project priority list was presented to the PRAB on January 19, 2021, including an associated cost of $40,650,000 for the following items:  Naranja Park Community Center Building and Site Tangerine Road to Rancho Vistoso Boulevard Shared Use Path (SUP) extension (Loop extension in partnership with Pima County) Pedestrian bridge across CDO Wash CDO Wash to James D. Kriegh Park SUP Naranja Drive SUP (in conjunction with roadway project) Oro Valley Aquatic Center Steam Pump Ranch Amphi School District Partnership Overall, the PRAB was supportive of the preliminary project list, specifically a strong desire to complete Naranja Park. No action was taken at that meeting.   Next steps in the process are currently projected on the following timeline, which is subject to change based on feedback from Town Council:  March 23 – PRAB meeting, CIP and funding priorities March 30 – Community meeting focus on CIP priorities April 20 - PRAB meeting, recommendation for approval May 19 - Town Council meeting, recommendation for Adoption June 2 – Town Council meeting, Adoption of Master Plan   FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Parks & Recreation Master Plan Update  Inspiring communities to action Parks and Recreation Master Plan Agenda •Prioritized Needs •Park Classifications •Levels of Service Standards •Equity Mapping •Connectivity Analysis (Trails) •Concept Plan •Capital Improvement Plan •Next Steps/Questions Community Input and Prioritized Needs What We Heard •Ensure recommendations are aligned with community need •Cross tabulation of needs by age segments o Youth o Adults o Seniors •Continue to engage the community throughout the planning process •Nature Tourism will be addressed through environmental education programming recommendations Recreation Programs and Services Prioritized Needs Recreation Program/Service Priority Community special events Fitness & wellness programs Adult learning classes Senior programs & services Art classes High Recreation Program/Service Priority Walking/jogging/running/cycling clubs Performing arts programs Golf lessons/clinics Environmental education programs Pickleball lessons/clinics Open swim Medium Recreation Program/Service Priority Water fitness programs/lap swimming Weightlifting/bodybuilding programs Running events Reservation/rental of picnic shelters After school programs/out ‐ of ‐ school camps Tennis lessons & leagues Family ‐ oriented programs Bicycle lessons & clubs Learn to swim programs Volleyball programs Soccer programs Programs for people with special needs Reservation/rental of indoor meeting space Archery Basketball programs Sand volleyball programs Recreation/competitive swim team Gymnastics Softball programs Reservation/rental of athletic fields Football programs Baseball programs Lacrosse programs Low High Priority Programs and Services Town-Wide Households with Children Ages 0-17 Households Ages 18-54 NO Children Households Ages 55+ NO Children Community special events Fitness & wellness programs Adult learning classes Senior programs & services Art classes After school programs/out‐of‐school camps Walking/jogging/running/cycling clubs Program and Service Prioritization by Household Type Medium Priority Program and Services Town-Wide Households with Children Ages 0-17 Households Ages 18-54 NO Children Households Ages 55+ NO Children Walking/jogging/running/cycling clubs Performing arts programs Golf lessons/clinics Environmental education programs Pickleball lessons/clinics Open swim Art Programs Senior Programs and Services Family‐oriented programs Soccer Programs Adult learning classes Picnic shelter rentals Water fitness programs/Lap swimming Tennis Lessons Weightlifting/Body‐building Basketball Running Events Bicycle lessons Program and Service Prioritization by Household Type Park, Facility, and Amenity Prioritized Needs Facility/Amenity Priority Trails (natural surface) Trails (multi ‐ use paved) Open space conservation areas/trails Neighborhood parks Restroom buildings Large community parks Performing Arts Venue (stage) Community gardens High Facility/Amenity Priority Golf Dog parks (off ‐ leash) Recreation/community center Playgrounds Pavilions/picnic sites Amphitheater Aquatics facility ‐ recreation/lap pool Aerobics/dance rooms/dance floors Aquatics facility ‐ splash pad/water play features Pickleball courts Medium Facility/Amenity Priority Environmental education center Disc golf course Tennis courts Skateboarding/bicycle parks (concrete) Banquet/meeting rooms Basketball/volleyball courts ‐ inside Baseball/softball fields Sand volleyball courts Remote control (RC) hobby facility Football/soccer/lacrosse fields Dirt bicycle pump/BMX track Basketball/volleyball courts ‐ outside Archery range Aquatics facility ‐ competition pool Low High Priority Facilities and Amenities Town-Wide Households with Children Ages 0-17 Households Ages 18-54 NO Children Households Ages 55+ NO Children Trails (natural surface) Trails (multi‐use paved) Open space conservation areas/trails Neighborhood parks Restroom buildings Large community parks Performing Arts Venue (stage) Playgrounds Community Gardens Aquatics facility‐splash pad/water play features Facility and Amenity Prioritization by Household Type Medium Priority Facilities and Amenities Town-Wide Households with Children Ages 0-17 Households Ages 18-54 NO Children Households Ages 55+ NO Children Golf Dog parks (off‐leash) Recreation/community center Playgrounds Pavilions/picnic sites Amphitheater Aquatics facility‐recreation/lap pool Aerobics/dance rooms/dance floors Aquatics facility‐splash pad/water play features Pickleball courts Football/soccer/lacrosse fields Basketball/volleyball courts‐inside Skateboarding/bicycle parks (concrete) Sand volleyball courts Disc golf course Dirt bicycle pump/BMX track Baseball/softball fields Environmental education center Basketball/volleyball courts‐outside Performing Arts Venue (stage) Tennis Courts Trails (multi‐use paved) Restroom Buildings Community Gardens Large Community Parks Facility and Amenity Prioritization by Household Type Park Classifications Mini Parks Small, urban open spaces that serve a variety of functions, such as: small event space, play areas for children, spaces for relaxing and socializing, taking lunch breaks, etc. Four key qualities: ◦Accessible ◦Allow people to engage in activities ◦Comfortable spaces that are inviting ◦Sociable places Service area is usually less than a quarter-mile and are intended for users within close walking distance Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards. Size:0.2 to 2 acres Neighborhood Parks Typical length of stay: 30 minutes to one hour Amenities:Basic amenities for picnicking and for play. Restrooms are common, as well as occasional pavilions/shelters, small turfed areas, playgrounds, picnic tables, benches, landscaped areas, and limited sports fields. Parking : Limited parking that is appropriate for neighborhood use Other goals: Strong appeal to the surrounding neighborhood, integrated design scheme throughout the park, loop-trail connectivity, safety design meets established standards Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards Size:2 to 15 acres. Community Parks Typical length of stay:Two to three hours Amenities:A well -designed community park includes: trails, sports fields, large shelters/pavilions, playgrounds, sports courts, water features, public restrooms, parking lots, security lighting, and ball field lighting Parking:Sufficient to support optimal usage Other goals:Community parks can include unique amenities or facilities that may draw users from a larger service area. Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards. Size:10-75 acres Regional Parks Typical length of stay:Two hours to all day Amenities:Multiple signature facilities, including beaches, athletic fields, outdoor recreation/extreme sports amenities, playgrounds, reservable picnic shelters, recreation center, pool, gardens, trails, specialty facilities, public restrooms, concessions, ample parking, and special-event sites Parking:Sufficient for all amenities; can support a special event with a regional draw Other goals:Regional parks are the epicenter of many recreation programs and community events, and they frequently draw visitors/users from a regional service area. These facilities are usually considered major economic and social assets in a community. Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards. Size : 15 to 300 acres Special Use Park Typical length of stay: Two to six hours Amenities:Specific to the purpose of each facility Revenue-producing facilities: Designed to produce revenue to offset operational costs Parking : Sufficient for all amenities; can support a special event with a regional draw Other goals: Recreation and special-use facilities are similar to regional parks as they also can serve as the epicenter of many recreation programs and community events, and they frequently draw visitors/users from a regional service area. These facilities are often considered major economic and social assets in a community. Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards. Conservation Area/Trail Park Typical length of stay:Two hours to all day. Amenities:Limited or none, usually only trails. Parking:Capable of supporting safe and ecologically responsible use of the site. Other: Safety design meets established Crime Prevention through Environmental Design (CPTED) standards. Design: Crime Prevention through Environmental Design (CPTED) guidelines and ADA standards. Size : Minimum of 5 acres. Greenbelt/Trail Corridor Site Selection: Consistent with an approved Bicycle, Pedestrian and Trails Master Plan. Amenities: Parking and restrooms at major trailheads. May include small parks along the trail. Lighting: Security lighting at trailheads and along trail is preferred. Signage: Mileage markers at ¼ mile intervals. Interpretive kiosks at all trailheads and where deemed necessary. Other: Connectivity to parks or other Town destination locations Levels of Service What We Heard •Town -owned parks are needed North of Tangerine Road •Ensure that recommendations specifically address o Open Space o Trails o Athletic Fields o Community Center Improvements •Recognize Catalina State Park as recreational opportunity Town Parks Map HOA Parks Map Town and HOA Parks Map Level of Service Methodology Level of Service population based standards are developed using a combination of local, regional and national resources, including: •Current Level of Service –Do NOT add park land if adequate developed park land already exists •Current Inventory and its condition ratings (is there a greater need to take care of what already exists vs. construct new?) •Opportunity to acquire and develop parkland •National Recreation and Park Association (NRPA) guidelines. •Recreation participation rates reported by the Sports & Fitness Industry Association’s (SFIA) 2020 Study of Sports. •Market Potential Indices •Prioritization of Community Need •Financial Sustainability –Operations and maintenance funding needed to support new investment Trail and Open Space Assumptions •Population based level are not developed for: •Trails –creating a connected network is the desired outcome •Open Space –seeking opportunities to preserve open space within the context of Town’s Comprehensive Plan and zoning ordinances is the desired outcomes Current Levels of Service –Parks and Acreage -OVERALL Park Type Town of Oro Valley Other Inventory Total Inventory Mini Park 39.00 39.00 0.85 acres per 1,000 Neighborhood Parks - 47.70 47.70 1.04 acres per 1,000 Community Parks 48.00 - 48.00 1.05 acres per 1,000 Regional Parks 213.00 - 213.00 4.66 acres per 1,000 Recreation/Special Use Area 320.00 - 320.00 7.00 acres per 1,000 Total Developed Park Acreage 581.00 86.70 667.70 14.60 acres per 1,000 Greenbelt/Trail Corridor 5.80 - 5.80 0.13 acres per 1,000 Conservation Area/Trail Park 154.70 - 154.70 3.38 acres per 1,000 2020 Park Inventory Current Service Levels Current Service Level Current Levels of Service –Parks and Acreage -TOWN Park Type Town of Oro Valley Community Parks 48.00 1.05 acres per 1,000 Regional Parks 213.00 4.66 acres per 1,000 Recreation/Special Use Area 320.00 7.00 acres per 1,000 Total Developed Park Acreage 581.00 12.71 acres per 1,000 Greenbelt/Trail Corridor 5.80 0.13 acres per 1,000 Conservation Area/Trail Park 154.70 3.38 acres per 1,000 2020 Park Inventory Current Service Levels Current Service Level Current Levels of Service –Parks and Acreage -HOA Park Type Other Inventory Mini Park 39.00 0.85 acres per 1,000 Neighborhood Parks 47.70 1.04 acres per 1,000 Total Developed Park Acreage 86.70 1.90 acres per 1,000 Current Service Level 2020 Park Inventory Current Service Levels Recommended Levels of Service –Parks and Acreage -TOWN Park Type Town of Oro Valley Meet Standard/ Need Exists Community Parks 48.00 1.05 acres per 1,000 1.10 acres per 1,000 Need Exists 12 Acre(s) Regional Parks 213.00 4.66 acres per 1,000 3.50 acres per 1,000 Meets Standard - Acre(s) Recreation/Special Use Area 320.00 7.00 acres per 1,000 5.75 acres per 1,000 Meets Standard - Acre(s) Total Developed Park Acreage 581.00 12.71 acres per 1,000 10.35 acres per 1,000 Need Exists 12 Acre(s) Greenbelt/Trail Corridor 5.80 0.13 acres per 1,000 NA acres per 1,000 NA - Acre(s) Conservation Area/Trail Park 154.70 3.38 acres per 1,000 NA acres per 1,000 NA - Acre(s) Recommended Land Acquisition (Needs Exist less the Current Undeveloped Park Land)Need Exists 12 Acre(s) 2020 Park Inventory Current Service Levels Recommended Developed Park Service Levels 2035 Standards Current Service Level Recommended Developed Park Service Levels Additional Developed Parks/Facilities/ Amenities Needed Recommended Levels of Service –Parks and Acreage -HOA Park Type Other Inventory Meet Standard/ Need Exists Mini Park 39.00 0.85 acres per 1,000 0.10 acres per 1,000 Meets Standard - Acre(s) Neighborhood Parks 47.70 1.04 acres per 1,000 1.25 acres per 1,000 Need Exists 21 Acre(s) Total Developed Park Acreage 86.70 1.90 acres per 1,000 1.35 acres per 1,000 Needs Exists 21 Acre(s) Recommended Park Development by HOA Needs Exists 21 Acre(s) Current Service Level Recommended Developed Park Service Levels Additional Developed Parks/Facilities/ Amenities Needed 2020 Park Inventory Current Service Levels Recommended Developed Park Service Levels 2035 Standards Equity Mapping -TOWN Town Parks Map HOA Parks Map Town and HOA Parks Map Equity Mapping Methodology •An equity-mapping analysis was conducted to show the service areas and the gaps in service of the current inventory of park types and amenities based on the recommended LOS standards. •The service area is calculated by the quantity of inventory of each site extended in a uniform radius until the population served by the recommended standard is reached. •Shaded areas indicate the extent of the service area based on recommended inventories. •Unshaded areas indicate locations that would remain outside of the standard service area for each park type or park asset. Community Parks Regional Park Special Use Parks Conservation/Trail Parks Connectivity Analysis What We Heard •Trails are a high priority for Town residents •Phase 2 scope was adjusted to include the identification of shared use path connectivity opportunities •Ensure that connectivity to parks and schools and other jurisdictional trail systems is included. Connectivity Analysis Scope •Identify missing shared use path trail segments •Identify possible opportunities to generally expand the shared use path trail system •Prioritize the opportunities to better connect and expand the shared use path trails system •Soft surface trail development goes “hand-in-hand” with preservation of open space opportunities Connectivity Analysis -Overall Connectivity Analysis –North of Tangerine Connectivity Analysis –Rancho Vistoso Community Loop Connectivity Analysis –Catalina State Park Connectivity Analysis –South of Tangerine Connectivity Analysis –Naranja Park and Community Center Connectivity Analysis –Community Center and Lambert Lane Connectivity Analysis –Riverfront to James D. Kreigh Connectivity Analysis –James D. Kreigh and retail Connectivity Analysis –Northern Avenue Connectivity Analysis -Overall Connectivity Analysis –Preliminary Cost Summary Asset Estimated Total Project Cost Tangerine Road to Rancho Vistoso Community Shared Use Path Extension (funded through Pima County)$750,000 Shared Use Path to Catalina State Park $200,000 Pedestrian Bridge across CDO Wash $1,000,000 CDO Wash to James D. Kriegh Park Shared Use Path $1,000,000 Linda Vista Trailhead Shared Use Path $300,000 Naranja Drive Shared Use Path (in conjuction with roadway project)$1,000,000 La Canada Shared Use Path $500,000 James D. Kriegh Park to Retail Shared Use Path $350,000 Northern Avenue Shared Use Path #1 $750,000 Northern Avenue Shared Use Path #2 $350,000 School Connectivity Shared Use Path #1 $250,000 School Connectivity Shared Use Path #2 $500,000 Lambert Lane Park Shared Use Path $500,000 Rancho Vistoso Shared Use Path $1,800,000 Vistoso Golf Course Property Shared Use Path $350,000 Moore Road Shared Use Path $750,000 $10,350,000 TRAIL DEVELOPMENT TRAILS Concept Plans Site Specific Park Master Plan Development Process •Community Needs •Concept Plans –Pre-Design Phase –High Level (test fit) •Schematic Design Phase -A range of alternative design concepts are explored. •Design Development -All detailed design decisions are completed during this phase •Construction Documents -Consists of preparation of drawings and specifications establishing the requirements for the construction of the project. Concept Plans -Locations •Community Center -Site •Community Center -Facility •Steam Pump Ranch •James D. Kriegh Park •Riverfront Park •Naranja Park Concept Plans -Milestones •Draft Concepts Presented to Community (Virtual Meeting) -11/12/20 •Draft Concepts Presented to Parks & Recreation Advisory Board –11/17/20 •Draft Concepts Posted on Town Website for Comment -11/18/20 –12/18/20 o 321+ comments received by Oro Valley residents •Plans revised based on community input Community Center –Existing Site Plan Community Center Site –Public Comments •Positive feedback regarding pickleball court expansion •Parking lot is inadequate –not enough parking •Consider play area for children •Positive feedback regarding tennis court upgrades •Additional basketball courts needed •Consider solar/EV charging stations Community Center –Concept Plan 40% Increase! Community Center Existing Site/Floor Plan Community Center Facility –Public Comments •Positive feedback related to increase recreation and fitness space •Reduce size of bar •Indicate covered outdoor seating •Rework golf shower/locker and restrooms •Increase golf entry •Keep restaurant “upstairs” Community Center -Existing Floor Plan Level 1 Community Center –Diagramatic Floor Plan Detail Community Center –Diagramatic Plan -Main Entry –1st Level Community Center –Diagramatic Plan -Recreational –First Level Community Center –Diagramatic Plan –2nd Level Community Center –Diagramatic Plan –2nd Level Steam Pump Ranch –Existing Site Plan Steam Pump Ranch –Public Comments •No lawn expansion •Parking capacity is limited –encourage non-vehicular modes of travel •Significant concern regarding the use of this historic park for recreation activities (consider original Master Plan) •Positive feedback regarding new entry building/restrooms •Continue improvements to heritage plantings/native orchards/etc. •Consider play area for children Steam Pump Ranch –Concept Plan James D. Kriegh Park/Aquatic Center –Existing Site Plan James D. Kriegh Park –Public Comments •Consider adding lights to walking loop •Additional basketball courts needed •Positive feedback regarding addition of new playground, off-leash dog park, expansion of aquatic center, and parking connections •Consider adding lights to volleyball court •Concern regarding noise/lights from parking and maintenance yards •Concern regarding access to diamond fields for OV Baseball •Concern regarding removal of racquetball courts James D. Kriegh Park/Aquatic Center –Concept Plan CDO Riverfront Park –Existing Site Plan CDO Riverfront Park –Public Comments •Concern regarding removal of multi-use fields •Positive feedback regarding addition of splash pad and updated playground •Additional basketball courts needed •Consider adding lights to volleyball court •Concern regarding removal of Palo Verde trees from parking lot •Relocate expanded parking •Concern regarding removal of the lone tennis court CDO Riverfront Park –Concept Plan Naranja Park –Existing Site Plan Naranja Park –Public Comments •Additional basketball courts needed •Positive feedback regarding addition of skate park, pump track and splash pad •Consider adding walking path around the park and more dirt trails •Consider adding more pickleball courts •Concern regarding walking archery course and placement of adjacent paths •Consider adding bike extension on Naranja from 1st to La Canada •Additional diamond fields needed Naranja Park –Concept Plan Concept Plan –Preliminary Cost Summary Project Estimated Total Project Cost Naranja Park $17,000,000 Community Center Building and Site $13,900,000 James D. Kriegh Park and Aquatic Center $8,000,000 Riverfront Park $4,000,000 Steam Pump Ranch $6,000,000 TOTAL CONCEPT PLAN PROJECTS $48,900,000 CONCEPT PLAN COST SUMMARY Capital Improvements Sustainable Expanded Services Visionary 10-Year CIP Development Assumptions •Must be financially viable •Includes projects likely to be implemented within 10-year Plan period •Responsive to data collected and feedback received •Consistent with other planning efforts •Based on 2021 construction costs Sustainable Projects Summary Asset Brief Description Estimated Total Project Cost Timeline Community Center Site Lifecycle Replacement via Concept Plan Implementation $4,000,000 Short Term (1‐5 years) El Conquistador Golf & Tennis at Pusch Ridge Bleachers and Fencing; ADA accessibility, lighting upgrades/electrical upgrades, replace turf with desert landscape $200,000 Short Term (1‐5 years) Honeybee Canyon Park Restroom replacement (prefab); irrigation and landscape replacement $200,000 Short Term (1‐5 years) James D. Kriegh Park Lifecycle Replacement via Concept Plan Implementation $1,500,000 Long Term (6‐10 years) Riverfront Park Lifecycle Replacement via Concept Plan Implementation $2,500,000 Long Term (6‐10 years) Steam Pump Ranch Lifecycle Replacement via Concept Plan Implementation $3,000,000 Short Term (1‐5 years) Tho’ag Park FFE replacement; signage $15,000 Short Term (1‐5 years) West Lambert Lane Park Interpretive signage replacement; renovate trails $100,000 Long Term (6‐10 years) $11,515,000 Asset Brief Description Estimated Total Project Cost Brief Description Oro Valley Aquatic Center Pump room, pool deck, slide, locker room shower replacement $1,500,000 Short Term (1‐5 years) $1,500,000 $13,015,000 TOTAL SUSTAINABLE PROJECTS SUBTOTAL EXISTING PARKS SUBTOTAL EXISTING RECREATION FACILITIES SUSTAINABLE PROJECTS (Lifecycle Replacement) EXISTING PARKS EXISTING RECREATION FACILITIES Expanded Service Projects Summary Asset Brief Description Estimated Total Project Cost Timeline Big Wash Trailhead Restroom and Parking lot $250,000 Long Term (6‐10 years) CDO Shared Use Path Increase accessibility to Pusch Ridge $200,000 Long Term (6‐10 years) Community Center Site Expanded Services via Concept Plan Implementation $1,000,000 Short Term (1‐5 years) James D. Kriegh Park Expanded Services via Concept Plan Implementation $5,000,000 Long Term (6‐10 years) Riverfront Park Expanded Services via Concept Plan Implementation $1,500,000 Long Term (1‐5 years) Steam Pump Ranch Expanded Services via Concept Plan Implementation $3,000,000 Long Term (6‐10 years) $10,950,000 $10,950,000 TOTAL EXPANDED SERVICE PROJECTS SUBTOTAL EXISTING PARKS EXPANDED SERVICE PROJECTS (Upgrade and Renovation) EXISTING PARKS Visionary Projects Summary –Parks and Community Center Asset Brief Description Estimated Total Project Cost Timeline Amphi School District Partnerships Improvement to Diamond Athletic Fields $1,500,000 Short‐Term (1‐5 years) Naranja Park Implementation of Concept Plan $17,000,000 Short‐Term (1‐5 years) $18,500,000 Asset Brief Description Estimated Total Project Cost Timeline Community Center Building Implementation of Concept Plan $8,900,000 Short‐Term (1‐5 years) $8,900,000 SUBTOTAL PARKS SUBTOTAL EXISTING RECREATION FACILITIES PARKS EXISTING RECREATION FACILITIES VISIONARY PROJECTS (New/Major Upgrade) Visionary Projects Summary -Trails Asset Brief Description Estimated Total Project Cost Timeline Tangerine Road to Rancho Vistoso Community Shared Use Path Extension Extend shared use path north of Tangerine Road to provide connection to Rancho Vistoso Community and retail (funded through Pima County)$750,000 Short‐Term (1‐5 years) Shared Use Path to Catalina State Park Direct connection from North to Catalina State Park $200,000 Long‐Term (6‐10 years) Pedestrian Bridge across CDO Wash Pedestrian bridge across CDO Wash to connect to 2.69 mi CDO Linear Park shared use path.$1,000,000 Short‐Term (1‐5 years) CDO Wash to James D. Kriegh Park Shared Use Path New shared use path providing connection to James D. Kriegh Park.$1,000,000 Short‐Term (1‐5 years) Linda Vista Trailhead Shared Use Path New shared use path providing connection to Linda Vista Trailhead.$300,000 Long‐Term (6‐10 years) Naranja Drive Shared Use Path New shared use path along Naranja Drive between La Cañada and 1st Avenue.$1,000,000 Short‐Term (1‐5 years) La Canada Shared Use Path New shared use path along La Cañada to provide connection to Community Center.$500,000 Long‐Term (6‐10 years) James D. Kriegh Park to Retail Shared Use Path New shared use path providing connection to James D. Kriegh Park and retail.$350,000 Long‐Term (6‐10 years) Northern Avenue Shared Use Path #1 New shared use path along Northern Avenue between Hardy and Magee Roads to provide connection to James D. Kriegh Park and retail.$750,000 Long‐Term (6‐10 years) Northern Avenue Shared Use Path #2 New shared use path along Northern Avenue south of Magee Road to provide connection to Tohono Chul Park and retail.$350,000 Long‐Term (6‐10 years) School Connectivity Shared Use Path #1 New shared use path providing connection to Cross Middle School and Harelson Elementary School.$250,000 Long‐Term (6‐10 years) School Connectivity Shared Use Path #2 Extend shared use path along La Cholla Boulevard to provide connection from Wilson K‐8 School to Ironwood Ridge High School.$500,000 Long‐Term (6‐10 years) Lambert Lane Park Shared Use Path New shared use path providing connection from schools to Lambert Lane Park and Community Center.$500,000 Long‐Term (6‐10 years) Rancho Vistoso Shared Use Path Convert sidewalk on one side of Rancho Vistoso Boulevard to shared use path and provide connections to Honey Bee Canyon Park, Honey Bee Preserve and schools.$1,800,000 Long‐Term (6‐10 years) Vistoso Golf Course Property Shared Use Path Connection to former Vistoso Golf Course property.$350,000 Long‐Term (6‐10 years) Moore Road Shared Use Path New shared use path along Moore Road to provide connection West.$750,000 Long‐Term (6‐10 years) $10,350,000 SUBTOTAL TRAIL DEVELOPMENT TRAILS VISIONARY PROJECTS (New/Major Upgrade) Visionary Projects Summary –Administrative and Total Asset Brief Description Estimated Total Project Cost Timeline Park Master Plan Update 2030 Update 2021 Master Plan $200,000 Long‐Term (6‐10 years) Trails Master Plan Complete a Comprehensive Trails Master Plan $200,000 Long‐Term (6‐10 years) $400,000 $38,150,000 TOTAL VISIONARY PROJECTS SUBTOTAL ADMINISTRATIVE PROJECTS ADMINISTRATIVE PROJECT VISIONARY PROJECTS (New/Major Upgrade) Capital Improvement Program Summary –By Tier Tier Estimated Total Project Cost Sustainable Projects $13,015,000 Expanded Service Projects $10,950,000 Visionary Projects $38,150,000 TOTAL $62,115,000 SUMMARY BY TIER Capital Improvement Program Summary –By Timeline Timeline Estimated Total Project Cost Years 1 ‐5 $41,065,000 Years 6 ‐10 $21,050,000 TOTAL $62,115,000 SUMMARY BY TIMELINE Recommended PRIORITY Projects -Preliminary Project Estimated Total Project Cost Naranja Park $17,000,000 Community Center Building and Site $13,900,000 Tangerine Road to Rancho Vistoso Community Shared Use Path Extension (funded through Pima County)$750,000 Pedestrian Bridge across CDO Wash $1,000,000 CDO Wash to James D. Kriegh Park Shared Use Path $1,000,000 Naranja Drive Shared Use Path (in conjunction with roadway project)$1,000,000 Oro Valley Aquatic Center $1,500,000 Steam Pump Ranch $3,000,000 Amphi School District Partnerships $1,500,000 TOTAL PRIORITY PROJECTS $40,650,000 RECOMMENDED PRIORITY PROJECTS Next Steps January -April •Finalize Capital Improvement Plan •Identify Funding and Revenue Strategies for Capital Improvement Plan •Develop Strategic Action Plan •Create Final Master Plan