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HomeMy WebLinkAboutPackets - Stormwater Utillity Commission (205)AGENDA STORMWATER UTILITY COMMISSION REGULAR SESSION JUNE 18, 2026 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE        REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER   ROLL CALL   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission 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 Commission 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.   COUNCIL LIAISON COMMENTS (INFORMATIONAL ONLY)   DIRECTORS REPORT (INFORMATIONAL ONLY)   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE MAY 21, 2026 MEETING MINUTES   2.DISCUSSION OF MEETINGS AND EVENTS   3.PRESENTATION AND DISCUSSION OF STORMWATER UTILITY DIVISION BUDGET FOR FISCAL YEAR 2026-2027   4.PRESENTATION AND DISCUSSION OF THE STORMWATER UTILITY GRANT PURSUIT PROCESS   5.DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE JULY 16, 2026 STORMWATER UTILITY COMMISSION REGULAR SESSION MEETING   ADJOURNMENT   POSTED: 6/12/26 at 5:00 pm by ck POSTED: 6/12/26 at 5:00 pm by ck When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office 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 Commission 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 Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.”    Stormwater Utility Commission 1. Meeting Date:06/18/2026   Requested by: Dennis Roberts, Public Works Submitted By:Yarina Hynd, Public Works SUBJECT: REVIEW AND APPROVAL OF THE MAY 21, 2026 MEETING MINUTES  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 changes), the May 21, 2026 Regular Session meeting minutes as presented. Attachments 05-21-26 Draft Minutes  D R A F T MINUTES STORMWATER UTILITY COMMISSION REGULAR SESSION MAY 21, 2026 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE         REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER Chair Mattson called the meeting to order at 4:01 P.M.   ROLL CALL Present: Robert Aguayo, Vice Chair David Atler, Commissioner John McCauley, Commissioner Gary Mattson, Chair Absent: Tom Marek, Commissioner Staff Present: Dennis Roberts, Stormwater Division Manager Kevin King, Stormwater Utility Intern  Council Liaison Harry Greene arrived at 4:26 P.M.   CALL TO AUDIENCE There were no speaker requests.   COUNCIL LIAISON COMMENTS (INFORMATIONAL ONLY) Council Liaison Harry Greene was not present.   DIRECTORS REPORT (INFORMATIONAL ONLY) Stormwater Division Manager Dennis Roberts commented on the following topics: - In response to a topic where information was requested by a Commissioner regarding the installation by Pima County of Trash Traps on the Santa Cruz River - Clarification in response to a topic where information was requested by a Commissioner concerning local Water Utilities Coordination - Summer Meeting Schedule - Open Meeting Law Speaking Procedures   5/21/26 Minutes, Stormwater Utility Commission Regular Session 1   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE MARCH 19, 2026 AND THE APRIL 16, 2026 MEETING MINUTES   Motion by Commissioner John McCauley, seconded by Vice Chair Robert Aguayo to approve the March 19, 2026 meeting minutes. Vote: 3 - 0 Carried Other:Commissioner David Atler (ABSTAINING)   Motion by Vice Chair Robert Aguayo, seconded by Commissioner John McCauley to approve the April 16, 2026 meeting minutes. Vote: 4 - 0 Carried   2.DISCUSSION OF MEETING AND EVENTS    Stormwater Division Manager Dennis Roberts discussed past, current and upcoming meetings and events in which the Stormwater Utility has participated or will participate. Discussion ensued among the commission and staff.   3.DISCUSSION OF APRIL 16, 2026 STORMWATER UTILITY COMMISSION FIELD TRIP    Stormwater Division Manager Dennis Roberts provided a presentation that included the following: - Purpose of Today's Recap - Refresh key locations visited on April 16 - Share field trip photos - Summarize notable conditions observed in the field - Provide brief updates on active projects - Invite Commissioners to share reflections and ask questions - 2026 Stormwater Utility Field Trip Stops - Key Observations from the Field - Scour and downcutting at multiple culvert outlets - Sediment buildup limiting culvert capacity - Need for improved access for maintenance - Erosion related utility exposure at several sites - Successful stabilization work at completed projects - Unnamed Wash at the Noise Wall along La Canada Erosion Mitigation Project - La Cholla Wash and Sierra Wash at Lambert Lane Erosion Mitigation Project - Sierra Wash at W Glover Rd Erosion Mitigation Project - Sierra Wash at Via Mandarina Erosion Mitigation Project - Sierra Wash at W Naranja Dr Erosion Mitigation Project - Catalina Ridge Channel Access at N Avenida Vallejo - Catalina Ridge Channel Access at N Naranja Dr - SWUC Photo of Catalina Ridge Channel SWUC Field Trip Site Visit 2026 - Lower Highland Wash Flood Control and Channel Improvement Project - SWUC Photo of Lower Highland Wash SWUC Field Trip Site Visit 2026 - Gravel Pit Wash at N Pomegranate Dr Erosion Mitigation Project - Mutterer's Wash Flood Control and Channel Improvement Project - SWUC Photo of Mutterer's Wash SWUC Field Trip Site Visit 2026 - Carmack Wash Upper Tributary C Flood Control and Channel Improvement Project - Nanini Wash at N Paseo Del Norte Erosion Mitigation Project 5/21/26 Minutes, Stormwater Utility Commission Regular Session 2 - Nanini Wash at N Paseo Del Norte Erosion Mitigation Project - SWUC Photo - We Appreciate Your Support and Collaboration Throughout the Tour - SWUC Group Photo - Thank You For Joining the 2026 Stormwater Field Trip   4.DISCUSSION OF 2025/2026 TOWN OF ORO VALLEY MS4 COMPLIANCE SCHEDULE, THIRD QUARTER REPORT    Stormwater Division Manager Dennis Roberts reported on the Third Quarter, from January 1, 2026 through March 31, 2026, of the Town's 2025/2026 MS4 (Municipal Separate Storm Sewer System) Compliance Schedule. The Stormwater Utility is fully up-to-date and has met this quarter's goals.   5.PRESENTATION AND DISCUSSION OF ORO VALLEY MONSOON PREPAREDNESS    Stormwater Division Manager Dennis Roberts provided a presentation that included the following: - Protecting Oro Valley Residents - What are Monsoons? - How do Monsoons Impact Oro Valley? - Heavy Rainfall - Flash Flood Dangers - How Stormwater Management Keeps Oro Valley Safe - Regional Collaboration for Monsoon Readiness - Spreading the Message - Be Ready for Monsoon Season: Resources & Tips for Oro Valley - Protect Your Property: Oro Valley's Free Sandbag Program - Monsoon Preparedness Starts With You   6.PRESENTATION, DISCUSSION, AND POSSIBLE ACTION REGARDING RECOMMENDATION TO FORWARD AMENDMENTS TO TOWN CODE CHAPTER 17 TO THE MAYOR AND COUNCIL FOR CONSIDERATION AND ADOPTION    Stormwater Division Manager Dennis Roberts provided a presentation that included the following: - Purpose proposed amendments to Town Code Chapter 17 - Present proposed amendments to Town Code Chapter 17 - Background - What the CAV (Community Assistance Visit) Identified - Overview of Revisions - What Did NOT Change - Why Adoption is Important - Documents Provided to Commission — Included in the agenda packet: - ADWR (Arizona Department of Water Resources) CAV (Community Assistance Visit) comments summary - Redline version of Chapter 17 - Clean version of Chapter 17 (formatted for adoption) - Staff report and supporting materials - Commission is asked to review and provide feedback - Next Steps in the Process - Questions and Feedback - Thank you Discussion ensued among the Commission and staff.   Motion by Commissioner David Atler, seconded by Commissioner John McCauley to recommend forwarding the 5/21/26 Minutes, Stormwater Utility Commission Regular Session 3 Motion by Commissioner David Atler, seconded by Commissioner John McCauley to recommend forwarding the proposed motion of Chapter 17 Amendments to Mayor and Council for consideration and possible adoption. Vote: 4 - 0 Carried   ADJOURNMENT   Motion by Vice Chair Robert Aguayo, seconded by Commissioner John McCauley to adjourn the meeting. Vote: 4 - 0 Carried    Chair Mattson adjourned the meeting at 4:55 P.M.     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 Stormwater Utility Commission of Oro Valley, Arizona held on the 21st day of May, 2026. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Yarina Hynd Senior Office Specialist 5/21/26 Minutes, Stormwater Utility Commission Regular Session 4    Stormwater Utility Commission 2. Meeting Date:06/18/2026   Submitted By:Dennis Roberts, Public Works SUBJECT: DISCUSSION OF MEETINGS AND EVENTS RECOMMENDATION: This item is presented for information and discussion only. No action is requested.   EXECUTIVE SUMMARY: The following is a list of immediate past, and upcoming, stormwater-related meetings and events:     June 17, 2026 – Regional Flood Control Advisory Committee Meeting June 18, 2026 – Oro Valley Stormwater Utility Commission Meeting July 15, 2026 – Regional Flood Control Advisory Committee Meeting July 16, 2026 - Oro Valley Stormater Utility Commission Meeting (Canceled) August 19, 2026 – Regional Flood Control Advisory Committee Meeting August 20, 2026 - Oro Valley Stormater Utility Commission Meeting BACKGROUND OR DETAILED INFORMATION: Since the Commission’s last regular meeting, staff have continued participating in project-specific coordination, regional committee discussions, stakeholder outreach, and regulatory engagement activities. These meetings support collaboration with partner agencies, advance active capital and grant-funded stormwater projects, and ensure alignment with regional watershed management priorities. Staff will provide brief verbal updates on key discussions and outcomes during the meeting. FISCAL IMPACT: There is no fiscal impact associated with this informational item. Participation in these meetings is part of the Stormwater Utility Division’s routine operations. SUGGESTED MOTION: No motion required. This item is for information and discussion only.    Stormwater Utility Commission 3. Meeting Date:06/18/2026   Submitted By:Dennis Roberts, Public Works SUBJECT: PRESENTATION AND DISCUSSION OF STORMWATER UTILITY DIVISION BUDGET FOR FISCAL YEAR 2026-2027 RECOMMENDATION: This item is for discussion purposes only. No action is requested at this time. EXECUTIVE SUMMARY: The Town Manager’s Recommended Budget for Fiscal Year 2026–2027 was tentatively approved on June 3, 2026, and is scheduled for final adoption on June 17, 2026. As part of the annual budget process, the Stormwater Utility Division is presenting its FY 26–27 budget to the Commission for review, questions, and discussion. For FY 26–27, the Stormwater Utility is projected to receive $2,084,742 in revenue and expend  $2,374,474 across personnel, operations and maintenance, and capital projects. Although expenditures exceed annual revenues, the Utility begins the fiscal year with a strong fund balance of $1,643,746, which functions similarly to a savings account. This balance carries forward from prior years and allows the Utility to fund multi-year capital improvements and respond to unforeseen needs. After planned expenditures, the Utility is expected to end FY 26–27 with $1,354,014 remaining. This presentation provides a high-level overview of the FY 26–27 budget and a brief status update on the Utility’s 10-Year Financial Plan. A more detailed discussion of long-range financial needs and the upcoming stormwater rate review will be brought to the Commission in August. BACKGROUND OR DETAILED INFORMATION: FY 26–27 Budget Overview Stormwater Utility revenues total $2,084,742, consisting of:  $1,758,800 in charges for service $280,942 in federal grant revenue $45,000 in interest income Expenditures total $2,624,474, including:  $982,013 for personnel $456,445 for operations and maintenance $936,016 for capital outlay $250,000 for contingency These expenditures support the Utility’s core responsibilities, including MS4 compliance, NPDES requirements, drainage system maintenance, vegetation and debris removal, infrastructure inspections, storm event response, and floodplain management. Capital Projects Included in FY 26–27 The FY 26–27 capital outlay supports the following projects:  Catalina Ridge Access Ramp and Channel Improvement Project Sierra Wash at Glover Road Erosion Mitigation Project General Drainage Infrastructure Maintenance These projects address high-priority erosion, access, and stabilization needs identified through field inspections and long-range planning. 10-Year Financial Plan Status The Stormwater Utility maintains a 10-Year Financial Plan, currently updated through FY 30–31. Key trends include:  Gradual revenue increases based on the adopted fee structure Significant growth in capital needs beginning in FY 28–29 Cash balances rising in years preceding major projects and declining as construction begins Continued reliance on federal grant funding as part of long-term financial strategy This overview is provided for context. A detailed review of long-range needs and rate implications will be presented in August. FISCAL IMPACT: The FY 26–27 Stormwater Utility Budget includes $2,084,742 in revenues and $2,374,474 in expenditures, resulting in a projected ending fund balance of $1,354,014. No fiscal action is required by the Commission at this time. SUGGESTED MOTION: This item is for discussion purposes only. Attachments SWU Budget FY 26-27 Presentation  Stormwater Utility Division Budget: Fiscal Year 2026-2027 Stormwater Utility Commission Meeting June 18, 2026 Dennis E. Roberts, P.E., CFM Stormwater Utility Division Manager Purpose of Today’s Presentation • Introduce the Stormwater Utility’s FY 26-27 budget • Review major revenues and expenditures • Explain fund balance in simple terms • Clarify how this year’s budget positions the Utility for long- range capital needs. • Provide a short update on the 10-Year financial plan • Prepare the Commission for an in-depth discussion in August Stormwater Utility Overview. • MS4 Compliance & NPDES requirements • Required to maintain permit coverage and avoid enforcement actions. • Ensuring compliance with federal stormwater regulations, including inspections, reporting, and public education. • Drainage System Maintenance • Routine clearing of sediment, debris, and vegetation to maintain system capacity and conveyance. • Culvert, Channel & Basin Inspections • Regular inspection of Town-maintained drainage infrastructure for erosion, blockages, safety issues, and repairs. • Floodplain Management • Enforcement of floodplain regulations, review of floodplain use permits, and coordination with FEMA/DEMA processes. Stormwater Utility Overview. • Engineering Review • Technical review of drainage reports, development plans, grading plans, and hydrology/hydraulics submittals. • Storm Event Response • Field response during and after storm events, including wash checks, sediment removal, and hazard mitigation. • Capital Project Delivery • Planning, designing, and implementing wash stabilization, erosion control, and drainage-system improvement projects • Long-Range Financial and Infrastructure Planning • Managing the Stormwater Utility’s Fund Balance, 10-year capital forecasts, grants, and future rate evaluations. Overview of Fiscal Year 2026-2027 Budget The FY 26-27 budget includes: • Total revenue: $2,084,742 • Total expenditures: $2,374,474 • Beginning fund balance: $1,643,746 • Estimated ending fund balance: $1,354,014 • The Utility remains financially stable despite drawdown for capital work. What is Fund Balance • Fund balance works like a savings account • Money not spent in prior years carries forward • This balance allows the Utility to cover large projects and unexpected needs • Even though FY 26-27 expenses exceed revenue, the Utility ends the year with over $1.35 million available • A temporary drawdown is expected and planned for in the 10-year forecast Revenue Breakdown (FY 26-27) Total revenue: $2,084,742 Revenue sources: • Charges for service: $1,758,800 • Federal grants: $280,942 • Interest earnings: $45,000 • Charges for service remain the primary revenue source, while capital outlay drives the expenditure increase. Expenditure Breakdown (FY 26-27) Total expenditures: $2,624,474 Expenditure categories: • Personnel: $982,013 • Operations and Maintenance: $456,445 • Capital Projects: $936,016 • Contingency Reserve: $250,000 Year-Over-Year Comparison (FY 25-26 VS FY 26-27) ChangeFY 26-27 (Budgeted)FY 25-26 (Projected)Category +$282,322$2,084,742$1,802,420Revenue +$1,229,068$2,624,474$1,395,406Expenditures -$289,732$1,354,014$1,643,746Ending Fund Balance • Revenue increases due to ERU growth, utility rate increase and grant funding. • Expenditures increase due to capital project timing and inflation of construction cost. • Fund Balance remains healthy and above reserve requirements. FY 26-27 Capital Projects Summary Stormwater Utility Capital Outlay Total: $936,016 Projects included in the FY26-27 Recommended Budget: •Catalina Ridge Access Ramp and Channel Improvement Project • CIP Budget: $448,858 •Sierra Wash at Glover Road Erosion Mitigation Project • CIP Budget: $312,158 •Nanini Wash at N Paseo Del Norte Erosion Mitigation Project • CIP Budget: $125,000 •General Infrastructure Maintenance • CIP Budget: $50,000 • These projects address high-priority erosion and access issues identified in field inspections. Catalina Ridge Access Ramp and Channel Improvement Project Status: Active Last Revised: 06/10/26 Project Overview Fast, concentrated storm flows are eroding the channel bottom, creating long-term stability concerns. Heavy sediment buildup at the RCBC and limited maintenance access prevent the Town from managing sediment effectively or protecting adjacent property. Field observations also show potential for scour and continued channel-bottom erosion, underscoring the need for improved access and sediment management. Proposed Improvements Construct Maintenance Access Ramp: Construct an access ramp near Naranja Drive to enable safe channel maintenance. Salvage and Rebuild Channel Protection: Salvage riprap between the Naranja Drive RCBC outlet and the proposed ramp, remove existing fabric, regrade the channel, and install new filter fabric with a 12-inch gabion mattress. Evaluate Concrete Bottom Alternative: Request an alternate bid for a concrete channel bottom. Project Cost and Schedule: Opinion of Probable Construction Cost (OPCC): $448,858 (as of March 31, 2026) Current Status: 70% plans are in staff review; funding is programmed for FY 26/27 Next Steps: Complete plan set and submit for permitting. Open project bidding in late July to early August. Contract award and pre-construction meeting expected after monsoon season (around September 15) (32.407372, -110.963693) Project Overview Significant downcutting at the culvert outlet is threatening long-term culvert performance and infrastructure reliability. Erosion is undermining existing riprap and access for construction remains limited, with the nearest feasible entry point located approximately 120 feet from the culvert centerline. Stabilization is needed to restore channel function and protect the site. Proposed Improvements Channel Stabilization: Reconstruct the culvert outlet to eliminate downcutting and limit erosion. Riprap Repair: Reinforce or replace stormwater-undermined riprap Construction Access: Establish access from approximately 120 feet downstream to allow safe equipment mobilization. Project Cost and Schedule Federal Funding: $234,117 Town of Oro Valley Contribution: $78,040 Total Estimated Cost: $312,157 Funding and permits have been secured; quarterly reporting is in progress with the first report submitted. Bidding is expected to open in late July to early August. Contract award and pre-construction meeting are anticipated after monsoon season (around September 15). (32.416993, -111.007363) Sierra Wash at W Glover Rd. Mitigation Project In partnership with Status: Active Last Revised: 06/10/26 Nanini Wash at N Paseo Del Norte Erosion Mitigation Project Project Overview The site has significant safety concerns, including a 5 foot vertical drop near the pavement edge, 14–18 inches of scour below the culverts, a collapsed slope, and exposed utilities. One of the two 44 inch CMPs is partially filled with concrete, reducing capacity. Roadway undermining is ongoing and requires mitigation. Proposed Improvements Guardrail installation -A guardrail is needed along the roadway to address the vertical drop and protect the traveling public. Hydraulic analysis -A hydraulic analysis is required to confirm whether the existing culverts are adequately sized or if larger culverts are needed. Headwall installation -Construct a headwall with rock faced slope paving to stabilize the embankment and prevent further slope degradation. Scour protection -Install gabion baskets or a riprap splash pad below the culverts to protect against continued scour and channel erosion. Project Cost and Schedule Preliminary OPCC is $125K, programmed for FY26/27 (32.340946, -110.982974) Status: Active Last Revised: 05/11/26 Brief Status of the 10-Year Financial Plan Stormwater Utility’s 10-Year plan is currently updated through FY 30-31 Key trends: • Revenue increases gradually based on the adopted fee structure • Capital project needs increase significantly beginning FY 28-29 • Cash balances rise in years before major projects begin, then decline as work starts • Grant funding remains an important part of long-term financial Strategy • The August rate review will evaluate whether current rates sustain long-term capital needs. Ten-Year Forecast Scenario Upcoming Rate Review – August 2026 Preview Why a Rate Review is Required • Required annually under Town Code 15-24-13-H-3 to ensure long-term financial health. • Ensures the Utility continues to meet operational, maintenance, and capital needs. • Confirms compliance with cash reserve requirements in Town Code 15-24-10. • The Utility is a self-funded enterprise — it receives no General Fund support. • Rates must support MS4 compliance, drainage infrastructure maintenance, and capital improvements. Upcoming Rate Review – August 2026 Preview What Triggers a Rate Review • Updated 10-year financial plan identifying revenue needs, capital pressures, and reserve trends. • Projected increases in CIP costs, such as wash stabilization, culvert rehabilitation, erosion mitigation. • Inflation, increased O&M workload, and rising regulatory demands. • Growth in ERUs due to ongoing residential and commercial development. • Ensuring rates remain equitable and consistent with impervious area–based billing. Upcoming Rate Review – August 2026 Preview What Commissioners will Evaluated in August • Updated 10-year forecast of revenues, expenses, cash balances, and reserve levels. • FY 25–26 actuals and updated FY 26–27 projections. • Operating costs: personnel, O&M, administrative, professional services. • Capital needs: drainage repair, channel improvements, studies, equipment, vehicle replacement. • Growth in stormwater accounts • Rate structure consistency and equity across property types. • Benchmarking against local stormwater utilities. Upcoming Rate Review – August 2026 Preview Commissioners Should Expect in August • Updated scenarios reflecting new revenue, cost, and capital data for FY 26/27 budget planning. • Analysis of whether the current ERU rate remains sufficient or requires adjustment. • Options for maintaining compliance with reserve policy and long-range capital needs. • Discussion of rate design principles (e.g., impervious area equity, predictability, affordability). • Staff recommendation for rate direction, prior to Town Council’s FY 27/28 budget cycle. Summary • The Stormwater Utility remains financially stable • FY 26-27 expenses exceed revenue, but strong balance covers the difference • Essential stormwater and floodplain services are fully funded • Long-range planning continues to guide future rate and project decisions • More detailed analysis will be presented in August • The FY 26-27 budget aligns with the long-range plan and maintains compliance with Town Code reserve requirements. Questions Thank you! Questions from the Commission?    Stormwater Utility Commission 4. Meeting Date:06/18/2026   Submitted By:Dennis Roberts, Public Works SUBJECT: PRESENTATION AND DISCUSSION OF THE STORMWATER UTILITY GRANT PURSUIT PROCESS RECOMMENDATION: This item is for discussion purposes only. EXECUTIVE SUMMARY: This report provides an overview of the grant pursuit process of the Stormwater Utility, including lessons learned, active grant-funded projects, and future opportunities. Several major stormwater infrastructure projects, ranging from approximately $293,000 to more than $2.5 million, have been successfully positioned for federal Hazard Mitigation Grant Program (HMGP) funding. These grants represent substantial financial benefit to the community. The Stormwater Utility is also working with Pima County to explore opportunities for partnership on the required local match contributions. This presentation is intended to inform the Commission and the public of how the Stormwater Utility strategically leverages external funding to maximize stormwater improvements while minimizing the financial impact on ratepayers. BACKGROUND OR DETAILED INFORMATION: The Stormwater Utility’s structured grant pursuit process began in 2017 with submittals to the Federal Emergency Management Agency's (FEMA’s) Pre-Disaster Mitigation (PDM) program. Early efforts were not funded, but the process resulted in a strong working relationship with the Arizona Department of Emergency and Military Affairs (DEMA). This relationship led to successful State Emergency Council funding in 2019 in the amount of $202,910 for improvements at the Lambert Lane dip crossing. The Hazard Mitigation Grant Program has since become the Town’s most successful and dependable source of external funding. Current HMGP projects and their budgets include:  Sierra Wash at Via Mandarina Erosion Mitigation Project, estimated at $293,973 and substantially completed Lower Highland Wash Flood Control and Channel Improvement Project, estimated at $2,368,007 Sierra Wash at Glover Road Erosion Mitigation Project, estimated at $312,158 Gravel Pit Wash at Pomegranate Drive Erosion Mitigation Project, estimated at $300,000 These projects offer significant local benefit, with federal cost share ratios ranging from 75 percent to 90 percent. The Stormwater Utility has also submitted Notices of Intent for additional large-scale projects. These include the Mutterer’s Wash Flood Control and Channel Improvement Project, estimated at $2,561,528, and the Carmack Wash Upper Tributary C Flood Control and Channel Improvement Project, estimated at $3,380,314. These submittals were made under both the Building Resilient Infrastructure and Communities (BRIC) and Hazard Mititgation Assistance (HMA) programs. Eligibility for the HMA program will depend on DEMA’s verification of National Flood Insurance Program (NFIP)-insured structures within the project areas. To strengthen the financial position for future grant opportunities, the Stormwater Utility is in discussions with Pima County to request assistance with meeting local match requirements. This reflects a commitment to fiscal stewardship and ongoing collaboration with regional partners. FISCAL IMPACT: There is no fiscal impact.  Any approved grant awards or financial commitments will be presented separately for Town Council consideration during the annual budget review and cycle.  SUGGESTED MOTION: This item is for discussion purposes only.  Attachments Stormwater Utility Grant Pursuit Process Presentation  Stormwater Utility Grant Pursuit Process Town of Oro Valley Stormwater Utility June 18, 2026 How Our Process Began • Catalina Ridge - FEMA Pre-Disaster Mitigation Grant Program (PDM) 1. Process began in May 2017 with a grant workshop and Notice of Intent Submittal. (Not Ranked Highly) 2. October 2017, Received a phone call from the AZ Department of Emergency and Military Affairs (DEMA), asking that we fill out an application for Catalina Ridge with only 3 days to deliver 3. Our prompt and detailed response facilitated a good working relationship with DEMA. They appreciated our efforts as this helped keep them in good standing with FEMA. What We Learned From the PDM Grant Program • Very competitive on a national level. • FEMA review process is very stringent • Due to the high level of competition, projects have a very low likelihood of being funded. • Catalina Ridge was ultimately labeled a maintenance issue and not a design issue by the FEMA reviewers and deemed ineligible. • Moving On to Lambert Lane Dip Crossing Phase 2, Lower Highland Wash and Sierra Wash. The Work Starts To Pay Off In 2019 • State Emergency Council (SEC) funds managed by the Arizona Department of Emergency and Military Affairs (DEMA) I would like to congratulate the Applicants listed below on being awarded funding through the State Emergency Council (SEC) • The above message was received by the Town of Oro Valley on July 8, 2019. The Stormwater Utility was awarded $202,909.50 to reconstruct a hazardous dip crossing on Lambert Lane just west La Cholla Blvd. The Work Starts To Pay Off In 2019 Before The Work Starts To Pay Off In 2019 After Lower Highland Wash PDM Submittals in 2019 & 2020 • This project made it through the State review and ranking and was submitted to FEMA via the PDM program both years. • Due to the competitive nature and stringent FEMA review process of the PDM program, the project was not chosen by FEMA to move forward. • This submittal had a high level of detail and was put together very thoroughly, and that was recognized by DEMA. • However, when one door closes a new one opens. DEMA appreciated our efforts and asked the we resubmit this application into the Hazard Mitigation Grant Program (HMGP). The Hazard Mitigation Grant Program (HMGP) • FEMA’s Hazard Mitigation Grant Program (HMGP) provides funding to state, local, tribal and territorial governments to develop hazard mitigation plans and rebuild in ways that reduce or mitigate future disaster losses in their communities. This funding becomes available following a Presidentially declared disaster. • To receive HMGP funding, all local, governments must develop and adopt hazard mitigation plans, and they must apply as a sub-applicant via the State agency liaison with FEMA (DEMA). • This is the program that has produced the highest degree of success for the Town of Oro Valley Stormwater Utility. • Eligible risk reduction projects include, planning & enforcement, flood protection, retrofitting, and construction projects. The Hazard Mitigation Grant Program (HMGP) • As previously noted, the Hazard Mitigation Grant Program has been the program providing the highest degree of success in bringing additional funding to the Town of Oro Valley Stormwater Utility for infrastructure projects. • The Town currently has 1 project that has been successfully completed via this program, and 3 more projects that will be funded provided that they meet FEMA’s review for eligibility. • However, decision makers considering the utilization of this program for their needs must be aware of 2 important factors. 1. Timeframe: If the project must be completed immediately then this is not the program to use. 3 to 4 years to substantially complete a project. 2. Inflation: Given the 3 to 4-year timeframe, sub- applicants are responsible for any dollar amounts above the submitted project cost estimate on the application. Current Stormwater Utility HMGP Projects & Status 1. Sierra Wash At Via Mandarina Erosion Mitigation Project (75/25 Split) • Submittal Date: 4/29/2022 • Project Cost: $293,973 • Status: Substantially completed in June of 2025 (only $12,000 above original 2022 estimate) 2. Lower Highland Wash Flood Control and Channel Improvement Project (90/10 Split) • Submittal Date: 4/22/2022 • Project Cost: $2,368,007 • Status: Public notice of impending project period (Apr 14–29) completed. 3. Sierra Wash At Glover Road Erosion Mitigation Project (90/10 Split) • Submittal Date: 4/1/2022 • Project Cost: $312,158 • Status: Set to begin construction in September 2026 4. Sierra Wash at Pomegranate Drive Erosion Mitigation Project (75/25 Split) • Submittal Date: 10/18/2024 • Project Cost: $300,000 • Status: Under review for eligibility. Will be funded if it meets the eligibility criteria. Moving Ahead: (Future Programs, Projects & Challenges) • The Hazard Mitigation Grant Program still exists, and there were 10 presidentially declared disasters in the state of Arizona for the 2-year period covering 2024 & 2025. We are awaiting notices of funding opportunity associated with these disaster declarations. • The Pre-Disaster Mitigation has been replaced with a new program called Building Resilient Infrastructure and Communities (BRIC). Submittals into this program face the same competitive, and stringent review challenges as it’s predecessor (PDM). • DEMA announced a notice of funding opportunity for the BRIC program in April of 2026, and the Stormwater Utility submitted notices of intent into this pool for 2 potential projects. 1. Mutterer’s Wash Flood Control and Channel Improvement Project, with a projected cost of $2,561,528 2. Carmack Wash Upper Tributary C Flood Control and Channel Improvement Project, with a projected cost of $3,380,313.50 • DEMA also announced a notice of funding opportunity in April of this year for a program called Hazard Mitigation Assistance (HMA), and the Stormwater Utility also submitted the 2 projects listed above into this potential funding resource. However, to be eligible for this program the sub-applicant must have at least 1 property within the project benefitting area that carries a National Flood Insurance Program (NFIP) insurance policy. This is yet to be determined as the best available data we have is from 2017. DEMA will make this determination. Stormwater Utility Grant Pursuit Process Thank You Questions? Contact Information Dennis Roberts – Division Manager 520-229-5044 Scott Bennett – Stormwater GIS Analyst 520-229-4879    Stormwater Utility Commission 5. Meeting Date:06/18/2026   Requested by: Dennis Roberts, Public Works Submitted By:Yarina Hynd, Public Works SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE JULY 16, 2026 STORMWATER UTILITY COMMISSION REGULAR SESSION MEETING RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The Stormwater Utility is requesting to cancel the July 16, 2026 Stormwater Utility Commission Regular Session Meeting as a summer break. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (or deny) cancellation of the July 16, 2026 Stormwater Utility Commission Regular Session Meeting.