HomeMy WebLinkAboutPackets - Council Packets (1948)Town Council Meeting
Regular and Study Session
May 7, 2025
Town Council Meeting
Regular and Study Session
May 7, 2025
Town Council Meeting
Announcements
Upcoming meetings
Meetings are subject to change. Check the Town website for meeting status.
Water Utility Commission
May 12 at 5 p.m.
Hopi Conference Room
Public Safety Personnel Retirement System Board
May 13 at 3 p.m.
Kachina Conference Room
Stormwater Utility Commission
May 15 at 4 p.m.
Hopi Conference Room
Budget and Finance Commission
May 20 at 4 p.m.
Council Chambers
Parks and Recreation Advisory Board
May 20 at 6 p.m.
Hopi Conference Room
Town Council Regular Session
May 21 at 6 p.m.
Council Chambers
5
OV’s Path Forward
Resident Working Group Meetings
Topic: Land Use and Development
Thursday, May 8
5:30 - 7:30 PM
Online via Zoom
Topic: Water Resources and Conservation
Tuesday, May 13
5:30 - 7:30 PM
Online via Zoom
The community’s next 10-year action plan
OV Trails Connect
Planning for future trails and paths
Upcoming Meetings and Events
Trail Stakeholder Group Meeting #2
Wednesday, May 14
5:30 - 7:30 PM
Online via Zoom
Visit OVPathForward.com Visit OVTrailsConnect.com
Get Involved in OV’s Future!
Town Council Meeting
Regular and Study Session
May 7, 2025
8
Oro Valley Theatre Company
9
Stormwater Utility Field Trip: April 18, 2025
10
Sierra Wash at Naranja Drive: Channel Degradation & Ultimate Repair
11
Sierra Wash at Naranja Drive: Channel Degradation & Ultimate Repair
12
New 44-ft bridge on Hole #7 at Pusch Ridge Golf Course
13
Amphitheater Public Schools: Students in Partnership with Industry Breakfast
Town Council Meeting
Regular and Study Session
May 7, 2025
Meet and Confer
Public Session – May 7, 2025
Why No Tentative Agreement?
Vastly Different Costs for Base Step Systems (Union 2 Year Cost =
$1,182,250 v. Town 2 Year Cost = $637,100)
Union’s Base Wage Package causes significant higher PSPRS pension
spike (Union = $7.8M v. Town = $3.0M in additional pension liability)
Union = 4 Year MOU v. Town’s 2 Year MOU
Union = $2.00 per hour for on -call pay v. Town’s $1.50 (Current =
$1.25, Marana = $1.30; Tucson = $2.75)
Union = re-open MOU with unilateral notice v. Town’s “mutual
agreement of committees”
Current Memorandum of Understanding (MOU) 7/1/22 – 6/30/25
Three Year MOU
10 Steps for Police Officer and Detective Ranks; 8 Steps for Sergeant
Steps = 4.25% for Officer and Detective; 2.85% for Sergeant
Step 1 Officers and Detectives received 13.26% front loaded wage increase with three
4.25% step increases to follow for a total of 26.01% over life of MOU.
Average Officers and Detectives received 20.54% (6.85% average per year) over life of
MOU.
Step 1 Sergeants received 8.82% front loaded wage increase with three 2.85% steps
increases to follow for a total of 17.37% (5.79% average per year) over life of MOU.
Average Sergeant received 18.70% (6.23% average per year) over life of MOU.
Problems to Solve For 2025 and Beyond
The wage increases from 2022-2025 produced a $6 million one-time pension
spike (Additional PSPRS liability).
Bottom of the Range did not change during MOU. Marana and Tucson
minimum pay surpassed the Town’s in 3rd Year. To counteract this situation
without opening the MOU, a signing bonus of $5,300 to Match Marana
Minimum Pay
Top of the Range did not change during MOU. Once Officers (of all ranks) hit
top pay they received no increase. To counteract this situation without opening
the MOU, a one-time stipend of $1,500 was provided to all MOU personnel in
July 2024. This made MOU personnel “whole” compared to Marana’s general
5% increase.
Town Goals For New MOU
Fair and Competitive Wage Package
Maintain Oro Valley as one of the safest communities in Arizona if not the
Country
Comparators: Mostly Marana, Tucson, Pima County Sheriff and Sahuarita
Starting Pay to effectively recruit against Marana and TPD
Competitive Pay throughout the entire Compensation Structure to retain our
current team members.
Step Flexibility
Keep Pulse on Marana and Tucson for FY 25-26 to remain Competitive
Minimize Pension Spike (Unfunded PSPRS Liability) – Sustainable Cost
Structure
Recruit and Retain to Keep OV Police Department fully staffed
May 2, 2025 – Most Recent Proposal
Management Negotiation Committee Proposal
Step Plan – Maintains 4.25% Steps as current MOU for Police Officers & Detectives. Sergeants were enhanced to 3.25% from 2.85%
Police Officer Starting Pay Almost 4% Higher Than Marana and 2.5% Higher Than Tucson As Forecasted
Dropped First 3 Steps to Achieve Competitive Starting Pay for All Ranks
Step Flexibility – Added 10% Range Above Top Step; All Top Step Officers of All Ranks will receive 3% wage increase, enter the range, and have potential for future increases each year.
Step 1 Officers = 13.3%, Step 2 Officers = 8.68%, All Others = 4.25% Except Top Step = 3%
Detectives = Increases Same as Police Officer
Step 1 Sergeants = 11.88%, Step 2 Sergeants = 5.77%, All Others = 3.25% - 4.43% except Top Step Officers receive 3% increase and start at the bottom of the range.
Average Increase across all Ranks = 4.96% in year one and 3.64% for year two, total % = 8.8%
May 2, 2025 – Most Recent Proposal (Continued)
Management Negotiation Committee Proposal
First Year Base Pay Cost = $360,150 + Increased Pension Liability of $3.0 million
Second Year Base Pay Cost = $277,100 + nominal additional PSPRS liability
Average base pay first year increase = 4.96% at All Ranks, higher than
Comparators (Marana 4%, Tucson 3.33% - 4%)
Fair and Competitive Wages
See Comparison of Year 1, 5, and 10 Year Chart later in the Presentation
April 21 , 2025 - Most Recent Proposal
Public Safety Negotiation Committee (Union)
Step Plan – Maintains 10 Steps for Police Officer and Detectives, 8 for Sergeants
Lowers Step to 3.75% between Steps for Police Officers and Detectives, 2.25%
Steps for Sergeants.
Year 1: Increases Steps As Follows and Officers Maintain Current Step:
Step 1 Police Officers and Detectives = 13.6%, Step 5 Police Officers and Detectives = 11.5%, Step 10 Police Officers
and Detectives = 8.8%
Step 1 Sergeants = 20.7%, Step 4 Sergeants = 18.6%, Step 8 Sergeants = 15.8%
Year 2 -4: Increases All Steps = +2%, then add one step on anniversary date (3.75%) =
5.83% for each year.
Average Increase across all Ranks = 11.65% in year one and approximately 4%
for years 2-4 depending upon number of Officers who reach top pay.
April 21, 2025 – Latest Proposal (Continued)
Public Safety Negotiation Committee
First Year Cost = $845,800 + Additional PSPRS Liability = $7.8 million
Second Year Base Pay Cost = $336,450
Key Differences
1st Year Average % Increases Higher Than Comparators throughout All Ranks
Significantly Higher Pension Spike (PSPRS Liability) Due to Large % Increases at Top Step for Police Officer, Detective and Sergeant Ranks.
Union’s 2 Year Cost = $8,982,000 (Base Wages + Pension Liability)
Town’s 2 Year Cost = $3,637,000 (Base Wages + Pension Liability)
Comparison Year 1, 5, 10 Year Actual Pay + Forecast (3%)
Police Officer 1st Year 5th Year 10th Year Top Pay of Range
Oro Valley $64,878.74 $70,510.51 $85,781.91 $94,360.03
Marana $62,575.34 $71,061.12 $79,021.70 $88,049.31
Variance $2,303.39 ($550.61)$6,760.21 $6,310.72
Tucson $63,294.40 $66,605.69 $74,547.20 $89,044.80
Variance $1,584.34 $3,904.82 $11,234.71 $5,315.23
Detective 1st Year 5th Year 10 Year Top Pay of Range
Oro Valley $71,528.70 $94,574.48 $94,574.48 $104,032.03
Marana $66,955.62 $94,212.77 $94,212.77 $94,212.77
Variance $4,573.09 $361.71 $361.71 $9,819.26
Tucson $ 69,617.60 $97,947.20
Variance $1,911.10 $6,084.83
Sergeant 1st Year 5th Year 10 Year Top Pay of Range
Oro Valley $92,560.00 $95,718.53 $105,192.26 $119,182.75 10 Year Pay +3%
Marana $88,654.38 $96,793.90 $107,758.77 $107,758.77 10 Year Pay +4%
Variance $3,905.62 ($1,075.37)($2,566.51)$11,423.98
Tucson*$96,553.60 $109,111.81 $113,762.69 $109,720.00 *Allowed Over Range?
Variance ($3,993.60)($13,393.28)($8,570.43)$9,462.75
Stifel’s Analysis on Police Pension Impact
Total NPV Benefit Impact on Total Police AAL1
Mgmt X Mgmt 3 POA 1
Tier 1 $1,355,201 $1,068,071 $3,494,142
Tier 2 $919,674 $724,820 $2,371,214
Tier 3 $758,325 $597,656 $1,955,203
Total ($)$3,033,200 $2,390,548 $7,820,558
1 All NPV values are discounted to April 28, 2025, at a discount rate of 7.20%, the assumed rate of return of PSPRS.
The weighted average percentage increase in police pay varied significantly across the proposals, from 4.31% in
management's third proposal to 10.71% in the Police Officers' Association (POA) proposal. Consequently, the
total NPV benefit impact ranged from $2.39 million (management proposal 3) to $7.82 million (POA proposal).
Capital Fund Balance – Forecast
CAPITAL FUND
Ending Fund Balance $11,661,887 $15,771,799 $7,117,315 $3,005,620 $849,869 $(903,380)
CAPITAL FUND
Ending Fund Balance $11,661,887 $12,050,402 $2,447,390 $(1,883,084)$(5,179,436)$(7,482,469)
CAPITAL FUND
Ending Fund Balance $11,661,887 $15,143,220 $7,605,052 $5,306,664 $4,736,537 $4,589,019
CAPITAL FUND
Ending Fund Balance $11,661,887 $14,991,512 $6,487,047 $4,254,127 $3,537,067 $3,234,106
Baseline
POA 1
Mgmt. 3
Mgmt. X
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 29/30
Forecast Forecast Forecast Forecast Forecast Forecast
Capital Fund Balance – Forecast
-8
-6
-4
-2
0
2
4
6
8
10
12
14
16
FY 24/25
Forecast
FY 25/26
Forecast
FY 26/27
Forecast
FY 27/28
Forecast
FY 28/29
Forecast
FY 29/30
ForecastMillionsForecasted Capital Fund Ending Fund Balance
POA 1
Baseline
Mgmt 3
Mgmt X
$0
Council Final Decision and Options to Consider
The decision how to proceed is completely Town Council’s under Town Code.
You can authorize an MOU with any terms and conditions that you deem
necessary and appropriate.
Questions?
Town Council Meeting
Regular and Study Session
May 7, 2025
PSNC
Addressing Negotiations, Impasse, and the
Future of Policing in Oro Valley
Negotiations Summary
2025
Initial Meeting Requests & Roadblocks
•Sept 25, 2024:
–OVPOA requested to set up meetings with Town Council.
•Sept 30, 2024:
–Public Safety Memo submitted identifying Public Safety Negotiation Committee (PSNC).
–Mr. Votava emailed PSNC to identify the Management Negotiation Committee (MNC) and
provided a letter from Mr. Wilkins citing Town Code §4-1-8E ‘Meeting and Conferring’
•“Would not attempt to stop them”, but did.
•View as a lack of good faith bargaining.
•Councilmembers were instructed not to meet with us.
•Oct 7, 2024:
–Follow-up requests to set meetings denied.
Management Engagement
& Early Proposals
•Nov 5, 2024:
–Quarterly meeting canceled by Mr. Wilkins (Oct 28) with no explanation.
•Nov 29, 2024:
–Initial PSNC proposal submitted based on September 2024 agency
comparisons.
•Dec 4, 2024:
–OVPOA attorney sent initial letter to management disagreeing with Mr.
Wilkins Sept 30 letter.
•Dec 17, 2024:
–OVPOA again requested meetings with Council.
–Mr. Wilkins sent a response letter denying the meeting request and
maintaining his misinterpretation of town code.
•Dec 20, 2024:
–FOP attorney responded to Mr. Wilkins —no reply received to date.
•Dec 30, 2024:
–Mr. Votava reached out to schedule first meeting.
Ground Rules Disputes
•Jan 14, 2025:
–OVPOA attorney replied to Mr. Wilkin’s 12/17 letter —no response received to date.
•Jan 21, 2025:
–First meeting: MNC proposed 18 ground rules.
•PSNC agreed to 15.
•Disputed 3: Council/media contact and impasse presentation.
•Jan 28, 2025:
–Counter-ground rules submitted; meeting held.
•Feb 4, 2025:
–MNC refused to remove disputed rules; requested signature regardless.
–Mutual agreement to set aside formal ground rules in favor of beginning negotiations.
3 weeks lost discussing these three ground rules
Proposal Negotiations Begin
•Feb 11, 2025:
–PSNC explained November 29 proposal
–MNC proposed cuts to meaningful benefits
•DROP contribution, LODD sick leave payout, step plan.
•Feb 16-25, 2025:
–Proposals exchanged and discussed.
–MNC consistently insisted on a 4-year MOU/PSNC 2-year
•PSNC agreed to 4-year if COLAs were assessed
Meetings & Adjustments
•Mar 3–13, 2025:
–Proposals exchanged and discussed.
•Mar 18, 2025:
–MNC Proposed Step Plan.
–PSNC submitted a proposal on the same day.
•Apr 8, 2025:
–Tucson released 3-year salary projections.
•Apr 14, 2025:
–MNC submitted 'best' offer (13.6% start/% top-out, 3.5% steps, 2% scale).
–April 15 deadline extended by mutual agreement.
•Apr 21, 2025:
–PSNC countered within 0.25%, adjusted Sergeant scale.
Breakdown & Impasse
•Apr 22, 2025:
–MNC reversed with new 'bridge' proposal —harmful to retention.
•Apr 28, 2025:
–All previous MNC offers withdrawn.
–PSNC declared impasse in writing.
•Apr 29, 2025:
–Mr. Wilkins claimed negotiations ongoing at Employee Town Hall.
•May 1–2, 2025:
–MNC final offer emailed
–PSNC cancelled meeting
•No meaningful change in Management’s position and no viable
path forward for productive discussion.
Problems with the Bridge Plan
•Step Plan Regression/Compression
–Step 3 officers now earn the same as new recruits entering the academy.
–Step 4 sergeants would earn the same as those newly promoted.
•Pay structure flaws
–Compensation based solely by hire date (or date of promotion for Sgts)
–No recognition for performance, tenure, or experience.
•Inadequate Adjustments
–Sergeant scale is still significantly below regional competitors
–Minor increases for topped-out staff
•Market Misalignment
–Step increase are not keeping pace with the market
–Risk of losing personnel to better-paying agencies
Budget Excuse & Misrepresentation
•Town claimed “no time or money” – but failed to budget for market adjustments
•Budget report only planned for step increases
•Union proposals misrepresented to Council
•Denied access to key documents
•Fear-based messaging used around “pension spiking”
–Numerous reports from Stifel with inflated numbers
•First: 13% versus 5% initial
•Second: Including 15 non-PSPRS personnel
•Third: 6 non-PSPRS possibly still included
–“Pension spiking” no longer a concern in 2 years with “bridge”
Retention Concerns
•31 officers left during current MOU.
–8 officers left for other agencies since July 2022.
•Internal Anonymous Survey (October 2024):
–Nearly 40% of members reported they may leave over uncompetitive pay and
benefits.
•Survey data dismissed as “subjective”.
•Town prioritized recruiting and new hire incentives over retention.
Our Good Faith Efforts
•Up to 3 meetings/week to reach agreement.
•April 14:
–Proposal submitted, within 0.25% of Town’s “best” proposal.
•Extended deadline to keep talks moving.
•Continued negotiations when MNC reversed progress, introduced “bridge plan”.
•Did not meet with Council until Management began holding Executive Sessions.
•Regularly adjusted proposals to meet MNCs concerns.
Our Proposal – Responsible &
Sustainable
•Market Adjustment:
–Step 1: +13.6% (Proposed by MNC)
–Step 10: +8.8% (MNCs “best” +6.5%)
–Proportional increases between
–Realignment of Sergeant Pay Scale (Under market)
•Future Increases:
–3.75% step + 2% COLA annually
•Other Key Concerns (Last changed in 2016):
–On-call: $2.00/hour
–Shift differential: $2.00/hour
Tucson PD offers higher rates for both ($2.75/$2.00)
Strategic Goals at Risk
•Town Strategic Plan Goals 3.1 & 3.2:
–Maintain public safety
–Support officer health & wellness
•Incompatible with current proposal pay structure
•Undervalued compensation = higher turnover, lower service quality
Our Message to the Community
•We serve with pride and dedication
•We’re not asking for excess — just fairness
•A stable, experienced police force is essential to Oro Valley’s safety
$55,000.00
$56,000.00
$57,000.00
$58,000.00
$59,000.00
$60,000.00
$61,000.00
$62,000.00
$63,000.00
$64,000.00
$65,000.00
Starting Pay
Current Starting Annual Pay FY24/25 (Officer)
Oro Valley PD Tucson PD Marana PD Arizona DPS
Oro Valley PD Hourly: $27.53
Tucson PD Hourly: $29.44
Marana PD Hourly: $30.08
Arizona DPS Hourly: $30.83
$27.00
$29.00
$31.00
$33.00
$35.00
$37.00
$39.00
$41.00
$43.00
$45.00
$47.00
Minimum Mid-Point Maximum
Proposal Comparisons with Projected Increases FY25/26 (Officer)
MNC Proposal PSNC Proposal TPD Projected MPD Projected AZDPS Projected
$27.00
$29.00
$31.00
$33.00
$35.00
$37.00
$39.00
$41.00
$43.00
$45.00
$47.00
$49.00
Minimum Mid-Point Maximum
Proposal Comparisons with Projected Increases FY26/27 (Officer)
MNC Proposal PSNC Proposal TPD Projected MPD Projected AZDPS Projected
$38.00
$40.00
$42.00
$44.00
$46.00
$48.00
$50.00
$52.00
$54.00
$56.00
$58.00
Minimum Mid-Point Maximum
Proposal Comparisons with Projected Increases FY25/26 (Sergeant)
MNC Proposal PSNC Proposal TPD Projected MPD Projected AZDPS Projected
$38.00
$40.00
$42.00
$44.00
$46.00
$48.00
$50.00
$52.00
$54.00
$56.00
$58.00
$60.00
$62.00
Minimum Mid-Point Maximum
Proposal Comparisons with Projected Increases FY26/27 (Sergeant)
MNC Proposal PSNC Proposal TPD Projected MPD Projected AZDPS Projected
•November 2024: Ranked #1
as the safest and wealthiest
U.S. retirement town
•2025: Ranked #1 Safest City
In Arizona.
Town of Oro ValleyTown of Oro Valley
Town Council Meeting
Regular and Study Session
May 7, 2025
Oro Valley Town Centre PAD
Potential Amendments
Town Council
May 7, 2025
51
52
Purpose
Pusch View Lane
El Con Patio Homes La ReserveOro Valley
Town
Center PAD
Area 4
Area 3
54
Background – Oro Valley Town Centre PAD
55
Background – PAD Zoning Area 3
56
Background – PAD Zoning Area 4
57
Potential Amendments in line with request
58
Summary
Town Council Meeting
Regular and Study Session
May 7, 2025
DISCUSSION REGARDING THE DRAFT
FY 25/26 - FY 26/27 STRATEGIC PLAN
Town Council
May 7, 2025
Key Council Touchpoints:
December 2024: Councilmember Input Sessions
January 20, 2025: First Draft Shared
February 6, 2025: Staff Report on Updates
February 13, 2025: Council Retreat
April 25, 2025: Updated Draft Distributed
May 7, 2025: Study Session Discussion
May 21, 2025: Final Plan Adoption (Proposed)
61
Plan Development Process
DISCUSSION REGARDING THE DRAFT FY 25/26 - FY 26/27 STRATEGIC PLAN
62
Strategic Plan Content
Strategy Statements
Definition: Clear, high-level
declarations of how the
organization will achieve its goals.
Why They Matter: They bridge
the gap between broad goals and
concrete action by setting
direction and focus.
Guiding Principles
Definition: Shared standards that
inform how decisions are made
and how work is approached.
Why They Matter: They help
teams know if they're on the right
track, both in day-to-day work
and when unexpected issues
arise.
Strategic Projects
Definition: Specific, actionable
efforts undertaken to implement
the strategic plan.
Why They Matter: Projects turn
strategy into reality by delivering
measurable outcomes aligned
with strategic goals.
DISCUSSION REGARDING THE DRAFT FY 25/26 - FY 26/27 STRATEGIC PLAN
63
Updated Process: Rolling Strategic Plan Update
Ongoing Council Input
FY25/26–FY26/27 projects form the foundation
FY26/27-FY27/28 projects will be reexamined through a rolling update
Purpose of the Update Process
Identify new priorities and projects
Reassess and reprioritize existing efforts
Prepare staff to “stand up” major FY27/28 projects early
DISCUSSION REGARDING THE DRAFT FY 25/26 - FY 26/27 STRATEGIC PLAN
64
FY 25/26 - FY 26/27 Strategic Plan Projects
Focus Area Count of Strategic Projects
Economic Vitality 4
Culture and Recreation 9
Public Safety 3
Infrastructure and Town Assets 8
Land Use and Design 4
Effective and Efficient Government 3
Financial Stability 4
Total 35
Lead Department FY26 FY27 Ongoing
CED 7 1
Finance 3
IT 1 2
Legal 1
OVPD 2
P&R 3 1
PW 3 2
TMO 4 2 2
Water 1
Total 24 8 3
DISCUSSION REGARDING THE DRAFT FY 25/26 - FY 26/27 STRATEGIC PLAN
Discussion
Town Council Meeting
Regular and Study Session
May 7, 2025
Town Council Meeting
Regular and Study Session
May 7, 2025
Town Council Meeting
Regular and Study Session
May 7, 2025
Town Council Meeting
Regular and Study Session
May 7, 2025