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HomeMy WebLinkAboutPackets - Stormwater Utillity Commission (209)AGENDA STORMWATER UTILITY COMMISSION REGULAR SESSION AUGUST 20, 2026 HOPI CONFERENCE ROOM 11000 N. LA CANADA 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 JUNE 18, 2026 MEETING MINUTES 2. RECOGNITION OF OUTGOING PUBLIC WORKS DEPUTY DIRECTOR AIMEE RAMSEY 3. DISCUSSION OF MEETINGS AND EVENTS 4. DISCUSSION OF 2025/2026 TOWN OF ORO VALLEY MS4 COMPLIANCE SCHEDULE, FOURTH QUARTER REPORT 5. PRESENTATION AND DISCUSSION OF LOWER HIGHLAND WASH FLOOD CONTROL AND CHANNEL IMPROVEMENT PROJECT STATUS 6. PRESENTATION AND DISCUSSION OF RATE REVIEW PREPARATION AND FINANCIAL OUTLOOK ADJOURNMENT POSTED: 8/18/26 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. " 7 0 5 t r r • r A x A A t t ��Q�NDF.4 ti6�A� Stormwater Utility Commission 1. Meeting Date: 08/20/2026 Requested by: Dennis Roberts, Public Works Submitted Bv: Yarina Hynd, Public Works SUBJECT: REVIEW AND APPROVAL OF THE JUNE 18, 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 June 18, 2026 meeting minutes as presented. Attachments 06-18-26 Draft Minutes DRAFT MINUTES STORMWATER UTILITY COMMISSION REGULAR SESSION JUNE 18, 2026 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 4:00 PM CALL TO ORDER Chair Mattson called the meeting to order at 4:08 PM. ROLL CALL Present: David Atler, Commissioner John McCauley, Commissioner Gary Mattson, Chair Absent: Robert Aguayo, Vice Chair Tom Marek, Commissioner Staff Present: Dennis Roberts, Stormwater Division Manager Mike Ortiz, Senior Engineering Associate Scott Bennett, Stormwater Utility Analyst Jane Hutchins, Stormwater Utility Inspector Kevin King, Stormwater Utility Intern Vice Chair Aguayo and Commissioner Marek asked to be excused. Council Liaison Greene asked to be excused. Senior Engineering Associate Mike Ortiz was excused at 4:57 P.M. CALL TO AUDIENCE Oro Valley resident Bill Jackson had questions and concerns about the Highland Wash at the Highland Mobile Home Park regarding: - FEMA funding and timeframe of construction - How future runoff will interact with the existing drainage system - Watershed conditions related to upstream subdivision grading - Soil movement and channel behavior. - If re -analysis was going to take place before construction. Stormwater Division Manager Dennis Roberts stated that these questions and concerns will be addressed as a future agenda item. 06-18-26 Minutes, Stormwater Utility Commission Regular Session COUNCIL LIAISON COMMENTS (INFORMATIONAL ONLY) Council Liaison was not present. DIRECTORS REPORT (INFORMATIONAL ONLY) Stormwater Division Manager Dennis Roberts commented on the following topics: • Town Code Chapter 17 Amendments - Unanimously approved by Mayor and Council. • Sierra Wash Drainage at Via Mandarina - Reimbursement update from DEMA. • Gravel Pit Wash at Pomegranate Drive - Updated subapplication submitted: project continues advancing through federal review. • BRIC (Building Resilient Infrastructure and Communities) Grant Progress - Two grant subapplicatons have advanced past DEMA's Stage 1 competitive review: • Mutterer's Wash at Greenock Drive Flood Control and Channel Improvement Project, at 2.5M with a 75% federal share and a 25% local match • Carmack Wash - Upper Tributary C Flood Control and Channel Improvement Project, at 3AM with a 75% federal share and a 25% local match REGULAR SESSION AGENDA REVIEW AND APPROVAL OF THE MAY 21, 2026 MEETING MINUTES Motion by Commissioner John McCauley, seconded by Commissioner David Atler to approve the May 21, 2026 meeting minutes. Vote: 3 - 0 Carried 2. DISCUSSION OF MEETINGS 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. There was a question whether the members of the Commission could attend the Flood Control Meetings. Mr. Roberts advised that the Regional Flood Control Advisory Committee Meetings are open to the public with an option being online access. PRESENTATION AND DISCUSSION OF STORMWATER UTILITY DIVISION BUDGET FOR FISCAL YEAR 2026-2027 Stormwater Division Manager Dennis Roberts provided a presentation to the Commission that included the following: - Purpose of Today's Presentation - Stormwater Utility Overview - Stormwater Utility Overview - Overview of Fiscal Year 2026-2027 Budget - What is Fund Balance - Revenue Breakdown (FY 26-27) - Expenditure Breakdown (FY 26-27) - Year -Over -Year Comparison (FY 25-26 VS FY 26-27) - FY 26-27 Capital Projects Summary • Catalina Ridge Access Ramp and Channel Improvement Project • Sierra Wash at W Glover Rd Mitigation Project 06-18-26 Minutes, Stormwater Utility Commission Regular Session • Nanini Wash at N Paseo Del Norte Erosion Mitigation Project - Brief Status of the 10-Year Financial Plan - Ten -Year Forecast Scenario - Upcoming Rate Review - August 2026 Preview: Why a Rate Review is Required - Upcoming Rate Review - August 2026 Preview: What Triggers a Rate Review - Upcoming Rate Review - August 2026 Preview: What Commissioners will Evaluated in August - Upcoming Rate Review - August 2026 Preview: Commissioners Should Expect in August - Summary - Questions Discussion ensued among the commission and staff. 4. PRESENTATION AND DISCUSSION OF THE STORMWATER UTILITY GRANT PURSUIT PROCESS GIS Analyst Scott Bennett provided a presentation to the Commission that included the following: - How Our Process Began - What We Learned From the PDM Grant Program - The Work Starts To Pay Off in 2019: State Emergency Council (SEC) funds managed by the Arizona Department of Emergency and Military Affairs (DEMA) - The Work Starts To Pay Off in 2019: Lambert Lane Dip Crossing Reconstruction: Phase 2 - Before - The Work Starts To Pay Off in 2019: Lambert Lane Dip Crossing Reconstruction: Phase 2 - After - Lower Highland Wash PDM Submittals in 2019 & 2020 - The Hazard Mitigation Grant Program (HMGP) - The Hazard Mitigation Grant Program (HMGP) - Current Stormwater Utility HMGP Projects & Status - Moving Ahead: (Future Programs, Projects & Challenges) - Stormwater Utility Grant Pursuit Process: Thank you. Questions? - Contact Information Discussion ensued among the commission and staff. DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE JULY 16, 2026 STORMWATER UTILITY COMMISSION REGULAR SESSION MEETING Motion by Commissioner John McCauley, seconded by Chair Gary Mattson to cancel the July 16, 2026 Stormwater Utility Commission Meeting. Vote: 3 - 0 Carried ADJOURNMENT Motion by Commissioner David Atler, seconded by Commissioner John McCauley to adjourn the meeting. Vote: 3 - 0 Carried Chair Mattson adjourned the meeting at 5:08 P.M. 06-18-26 Minutes, Stormwater Utility Commission Regular Session 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 18th day of June, 2026. 1 further certify that the meeting was duly called and held and that a quorum was present. Yarina Hynd Senior Office Specialist 06-18-26 Minutes, Stormwater Utility Commission Regular Session Stormwater Utility Commission 2. Meeting Date: 08/20/2026 Submitted By: Dennis Roberts, Public Works SUBJECT: RECOGNITION OF OUTGOING PUBLIC WORKS DEPUTY DIRECTOR AIMEE RAMSEY RECOMMENDATION: Staff respectfully recommends that the Stormwater Utility Commission formally recognize Deputy Director Aimee Ramsey for her exceptional service, professionalism, leadership, and contributions to the Public Works Department and the Town of Oro Valley. EXECUTIVE SUMMARY: Deputy Director Aimee Ramsey is retiring after a distinguished career with the Town of Oro Valley Public Works Department. Throughout her tenure, she demonstrated unwavering dedication, integrity, and a deep commitment to supporting staff across multiple divisions. Aimee's leadership created a lasting positive impact on the Stormwater Utility Division, Engineering, Transit, Fleet & Facilities, Street Operations, and the Capital Improvement Program. Aimee brought a keen intellect, a steady and consistent presence, and an authentic commitment to the people carrying out the work. She took the time to understand what each team does, what they are capable of, and she advocated for them whenever and wherever it mattered. Her consistency, command of detail and willingness to share her knowledge made her an effective leader and a trusted partner throughout the organization. The Town is better for her service, and she will be genuinely missed. BACKGROUND OR DETAILED INFORMATION: Deputy Director Aimee Ramsey has been an invaluable leader within the Town of Oro Valley Public Works Department. She served the community with dedication and a deep commitment to helping others succeed. She guided multiple divisions through a combination of professional expertise, mentorship, and genuine care for the people she leads. Across Public Works, Aimee was known for supporting staff not only in daily operations but also in their professional growth. She strengthened collaboration between divisions, improved communication across teams, and helped advance critical projects in a responsible and effective manner. Her experience in Transit, Engineering, and CIP management provided a well-rounded perspective that enriched decision -making throughout the department. Her steady leadership, problem -solving ability, and willingness to step in wherever support was needed helped departments navigate operational, budgetary, and organizational challenges. She consistently brought clarity, confidence, and a sense of stability to every team she worked with. For the Stormwater Utility Division specifically, Aimee's encouragement and guidance made a meaningful difference. She empowered staff, believed in their abilities, and supported the development of leadership within the division. Although she is not an engineer, Aimee pursued and earned her Certified Floodplain Manager credential. This achievement reflects her commitment to understanding and elevating every aspect of the work entrusted to her. On a personal note shared by staff, Aimee has been described as the finest manager they have had the privilege to work for. Her professionalism, thoughtful leadership, and genuine care built trust and strengthened every project and partnership she contributed to. Aimee's retirement represents the departure of a leader whose influence extended far beyond her official responsibilities. Her positive impact, her commitment to excellence, and her support for Town staff will be felt for years to come. This recognition honors both her professional accomplishments and the personal contributions she made to Public Works and the community it serves. FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Stormwater Utility Commission 3. Meeting Date: 08/20/2026 Submitted By: Dennis Roberts, Public Works SUBJECT: DISCUSSION OF MEETINGS AND EVENTS RECOMMENDATION: This items is for information only. EXECUTIVE SUMMARY: The following is a list of immediate past, and upcoming, stormwater-related meetings and events: • June 18, 2026 — Oro Valley Stormwater Utility Commission Meeting • June 25, 2026 - BRIC 24/25 meeting with DEMA to address the Mutterer's Wash BCA. • July 15, 2026 — Regional Flood Control Advisory Committee Meeting • July 16, 2026 - Oro Valley Stormwater Utility Commission Meeting (Canceled) • August 12, 2026 - Pima County Flood Control District Monthly Brown Bag Webinar • August 19, 2026 — Regional Flood Control Advisory Committee Meeting • August 20, 2026 - Oro Valley Stormwater Utility Commission Meeting • August 28, 2026 - Pima County Flood Control District — Technical Stakeholder Coordination Meeting • September 8, 2026 - FEMA/DEMA Hazard Mitigation Assistance (HMA) Coordination Call • September 10, 2026 - PAG/RTA Enviornmental Planning & Watershed Working Group • September 16, 2026 - Arizona Department of Environmental Quality (ADEQ) MS4 Coordination Meeting • September 18, 2026 - Regional Flood Control Advisory Committee 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: N/A SUGGESTED MOTION: N/A Stormwater Utility Commission 4. Meeting Date: 08/20/2026 Requested by: Dennis Roberts, Public Works Submitted Bv: Scott Bennett, Public Works SUBJECT: DISCUSSION OF 2025/2026 TOWN OF ORO VALLEY MS4 COMPLIANCE SCHEDULE, FOURTH QUARTER REPORT RECOMMENDATION: THIS REPORT IS FOR INFORMATIONAL PURPOSES ONLY EXECUTIVE SUMMARY: The Town of Oro Valley's (Town) Stormwater Management Program and Annual Report to ADEQ identify Minimum Control Measures (MCM's) used to manage and control quality of stormwater runoff from the MS4. Each MCM has been given specific implementation dates and frequencies, measurable goals, and responsible departments. This memorandum is a report on the Town's Stormwater Management Program for the second quarter of the Annual Reporting Period for 2025-2026 (April 1st through June 30th). It has been prepared to keep stakeholders informed of the status of project implementation in terms of completed tasks that are either (A) ongoing or continuous, or (B) to be done a minimum of once each year. Accompanying this Memorandum is a summary table listing each of the six (6) required MCM's along with their specific subset of Best Management Practices (BMP's). This summary table shows that the Stormwater Utility is up to date and has met this quarter's goals for implementing BMP's that are ongoing and continuous. BACKGROUND OR DETAILED INFORMATION: The Town manages stormwater quality in accordance with the Arizona Pollutant Discharge Elimination System (AZPDES) Permit AZG2021-002 that authorizes the discharge of stormwater from the municipal separate storm sewer system (MS4) to receiving waters, including Waters of the United States (WOTUS). The MS4 generally consists of roads, storm drains, and infrastructure carrying runoff into drainage ways or ephemeral stream channels. The Town has a Stormwater Management Program (SWMP) that describes the control measures it uses to manage the quality of discharges from the MS4. These Best Management Practices (BMPs) are: MCM-1. Public Education and Outreach MCM-2. Public Participation and Involvement MCM-3. Illicit Discharge Detection and Elimination MCM-4. Construction Site Runoff Control MCM-5. Post -Construction Runoff Control MCM-6. Pollution Prevention/Good Housekeeping for Municipal Operations The Town's Stormwater Management Program describes specific practices it uses to achieve compliance with Part 6.4 of the AZPDES Permit related to Minimum Control Measures, including specific implementation dates and frequencies, measurable goals, and responsible departments. Our staff keeps track of these thirty-three (33) targeted responsibilities and has prepared the attached summary table showing project implementation in terms of completed tasks that are either (A) ongoing or continuous, or (B) to be done a minimum of once each year. This attached summary Table shows that the Stormwater Utility is fully up to date and has met this quarter's goals for implementing BMP's that are ongoing and continuous. The next scheduled update will be regarding submission of the Annual Report to ADEQ on September 30th, 2026. This will be prepared and distributed for the October or November Stormwater Utility Commission meetings. FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments 2025-2026-MS4-Quarter-4-Compliance-Schedule 2025/2026 Town of Oro Valley Quarter 4 MS4 Compliance Schedule MCM-1 Public Education and Outreach BMP 1.1 Create and update informational brochures (A) BMP 1.2 Distribution of informational brochures to the general public (A) BMP 1.3 Distribution of brochures to businesses that potentially affect stormwater quality (B) BMP 1.4 Stormwater content in the Oro Valley Vista Newsletter (B) BMP 1.5 Outreach events at Town of Oro Valley schools (B) BMP 1.6 Display of outreach materials on Town owned Sun Shuttle buses. (A) BMP 1.7 Stormwater content on the Town of Oro Valley website (A) BMP 1.8 Effective response to public inquiries (A) MCM-2 Public Participation and Involvement BMP 2.1 Public participation through the Stormwater Utility Commission (SWUC) (A) BMP 2.2 Public involvement through notification of monthly SWUC meetings (A) BMP 2.3 Public interaction with SWU Staff (A) BMP 2.4 Solicitation of public comments regarding key components of utility operations (A) BMP 2.5 Encouragement of public participation via volunteer groups sponsored by the TOV (A) MCM-3 Illicit Discharge Detection and Elimination BMP 3.1 Implementation of an IDDE program (A) BMP 3.2 Identification and Mapping of the MS4 (A) BMP 3.3 Identification and mapping of the Town's Municipal Outfall Inventory (A) BMP 3.4 Annual Municipal Employee Illicit Discharge Training Program (B) BMP 3.5 Training of Town volunteers (A) BMP 3.6 Written IDDE Procedures (A) MCM-4 Construction Site Stormwater Run -Off Control BMP 4.1 Comprehensive pre -construction site plan review (A) BMP 4.2 Erosion and sediment control for capital improvement projects (A) BMP 4.3 Establishment and review of Town ordinances regarding disposal of hazardous construction site waste, sediment control, and erosion control (A) BMP 4.4 Documentation of procedures (A) BMP 4.5 Personnel Qualifications and Education of Private Contractors/Developers (A) BMP 4.6 Establish Procedures for Receipt and Consideration of Constituent Submittals (A) MCM-5 Post -Construction Runoff Control BMP 5.1 Creation, review and enforcement of post -construction stormwater pollution prevention regulatory mechanisms and standard operating procedures (A) BMP 5.2 Comprehensive GIS Inventory of Active and Finished Construction Projects (A) BMP 5.3 Implement Standard Operating Procedure on Post -Construction Inspections (A) BMP 5.4 Site Plan Reviews (A) MCM-6 Pollution Prevention and Good Housekeeping for Municipal Operations BMP 6.1 Inspection of Town of Oro Valley Municipal Operations, Storage, and Maintenance Facilities (A) BMP 6.2 Street Sweeping (A) BMP 6.3 Implementation of SPCC and Operation and Maintenance Plans for Town Maintenance Facilities (A) BMP 6.4 Municipal Employee Training Program (B) BMP 6.5 Town of Oro Valley Municipal Vehicle and Heavy Equipment Washing Procedures (A) BMP 6.6 Town of Oro Valley Fleet Maintenance Schedule (A) BMP 6.7 Facility Safety Data Sheet Inventory (A) (A) Ongoing and Continuous (B) Done Only Once Per Fiscal Year x means task completed during indicated quarter S. Bennett 8/1/2026 Quarter July - Sept I Oct - Dec I Jan - Mar I Apr -June aaaa aaa© aaa© aaa© aaa© x x x x x x x x x x x x x x x x x x x x aaa© aaa© aaa© aaa© aaa© x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Stormwater Utility Commission 5. Meeting Date: 08/20/2026 Submitted By: Dennis Roberts, Public Works SUBJECT: PRESENTATION AND DISCUSSION OF LOWER HIGHLAND WASH FLOOD CONTROL AND CHANNEL IMPROVEMENT PROJECT STATUS RECOMMENDATION: Staff recommends that the Stormwater Utility Commission receive the presentation and provide any comments or questions regarding the status of the Lower Highland Wash Flood Control and Channel Improvement Project. No formal action is requested at this time. EXECUTIVE SUMMARY: At the June 18, 2026 Stormwater Utility Commission meeting, an Oro Valley resident, Bill Jackson, expressed several questions and concerns regarding the Lower Highland Wash near the Highland Mobile Home Park. Specifically, he asked about project funding and construction timing, how future runoff would interact with the current drainage system, upstream watershed conditions, soil movement and channel behavior, and whether re -analysis would occur before construction. This agenda item provides a detailed update on the project's status within the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) and addresses each question raised during the Call to Audience. BACKGROUND OR DETAILED INFORMATION: Project Overview The Lower Highland Wash Flood Control and Channel Improvement Project was submitted to the Federal Emergency Management Agency (FEMA) in 2019 for consideration under the Hazard Mitigation Grant Program (HMGP). The project design is currently at approximately 65% completion based on a design concept memorandum and improvement plan developed in 2020 in collaboration with the Pima County Regional Flood Control District (PCRFCD) and the Town of Oro Valley. The FEMA public notice period occurred from April 14-29, 2026, and Pima County Regional Flood Control District (PCRFCD) reaffirmed its commitment to providing the local match. Project design refinements are underway to ensure compatibility with updated technical inputs, including the newly constructed sediment basin associated with the Naranja Trails subdivision. An archaeological study was completed on July 23, marking a key environmental milestone. Construction is anticipated for Fiscal Year (FY) 2028-2029, pending final federal award. As of today, FEMA has not provided a formal timeline for grant award or construction authorization. 1. FEMA Funding and Cost -Share • The project is in the final stages of review under the Hazard Mitigation Grant Program (HMGP) • Funding Split: 75% federal share / 25% local share • Total Estimated Project Cost: $2,370,000 • Federal Share: $1,776,005.44 • Town Share: $592,001.81 • Final award is still pending, and FEMA has not issued a formal start date. 2. Future Runoff and Drainage System Interaction • A full existing -conditions hydrology and hydraulics (H&H) model has been completed. The proposed -conditions model will be updated to reflect the construction of a 10-acre-foot sediment basin at the Naranja Trails subdivision, which replaces the sediment basin originally designed in the 65% plans. • The improved channel design will maintain the current alignment while significantly enhancing conveyance, stability, and erosion protection through: • Widening and deepening the channel • Installing concrete channel lining • Reinforcing channel banks with engineered protection • Tying the improved channel directly into the upstream sediment basin • These improvements will direct flows more predictably, reduce overtopping potential, and enhance the drainage system's ability to manage stormwater safely. 3. Upstream Watershed Conditions • Upstream grading associated with the Naranja Trails subdivision has been evaluated through the Town's improvement plan review process. Per Town Code and the Drainage Criteria Manual, developers must ensure that post -development runoff does not exceed pre -development conditions. • The upstream sediment basin: • Captures approximately 10 acre-feet of sediment • Reduces downstream sediment loads • Helps maintain pre -development runoff discharges • Will be maintained by the Town of Oro Valley • The Lower Highland Wash improvements are designed to function cohesively with upstream conditions. 4. Soil Movement and Channel Behavior • Documented erosion concerns include: • An undersized channel through the mobile home park causing sediment deposition and conveyance limitations • Steep drop structures between the sediment basin and W. Matterhorn Street • Limited elevation differences that constrain design options and promote erosion • The project resolves these issues through channel enlargement, concrete lining, engineered bank protection, and improved grade -control transitions from the sediment basin. 5. Re -Analysis Prior to Construction • Re -analysis will be completed before construction: • Hydrology: Existing hydrology remains valid. • Hydraulics: Hydraulic modeling will be updated to reflect current conditions and the new sediment basin. • FEMA Requirements: FEMA requested updated modeling; new data was included in the most recent Benefit -Cost Analysis (BCA) and Request for Information (RFI) submissions. • Design Verification: The Town is preparing final design -level construction documents, including grading, drainage plans, and hydraulic profiles. • Community Outreach: An outreach plan will be conducted at approximately 90% design to brief Highland Mobile Home Park residents. Community Communication • Outreach will occur once design is at 90% completion. • Residents will receive pre -construction notifications. • Updates will be included in future Stormwater Utility Director's Reports. FISCAL IMPACT: • Total Estimated Project Cost: $2,370,000 • Federal Share (HMGP): $1,776,005.44 • Town Share: $592,001.81 • Future Maintenance Impact: • The Town of Oro Valley will be responsible for maintaining the upstream channel and the channel segment through the mobile home park to Lambert Lane. SUGGESTED MOTION: N/A Attachments Highland Wash Project Update Presentation �O L LL M La O CN Y ca N CL �,cn O•— cn Q �� 0 a m a� m E � o O E O J O cn *a cn U QL . 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Meeting Date: 08/20/2026 Submitted By: Dennis Roberts, Public Works SUBJECT: PRESENTATION AND DISCUSSION OF RATE REVIEW PREPARATION AND FINANCIAL OUTLOOK RECOMMENDATION: Staff recommends that the Stormwater Utility Commission receive the update on the rate review preparation and long-range financial outlook, provide any initial feedback, and discuss priorities for the September rate review recommendation. EXECUTIVE SUMMARY: This agenda item provides a progress update on the Stormwater Utility's annual rate review, which is required under Town Code 15-24-13-H-3. The purpose of this meeting is to share the financial information compiled to date, outline the remaining work needed for the September recommendation, and ensure Commissioners are prepared for the full rate review discussion next month. The Utility continues to demonstrate financial stability, supported by a strong fund balance and the first step of the Council -approved rate increase that took effect on July 1, 2026. Updated FY 25-26 actuals and FY 26-27 projections show steady ERU growth, healthy revenue performance, and capital expenditures aligned with planned project delivery. A complete rate review, including reserve analysis, long-range capital forecasting, scenario modeling, and rate sufficiency evaluation, will be presented at an upcoming Commission meeting. Today's update is intended to keep Commissioners informed of progress and provide an opportunity for early discussion. BACKGROUND OR DETAILED INFORMATION: 1. Purpose of the August Update Town Code requires an annual rate review to ensure the Stormwater Utility remains financially sustainable, maintains required reserves, and can meet long-range capital and operational needs. The full rate review will be presented in September. This August update provides: • FY 25-26 actual financial results • Updated FY 26-27 projections • ERU growth trends • Status of capital projects • Confirmation of the adopted rate schedule • A preview of the remaining work needed for the September recommendation This meeting is informational and discussion -focused. 2. FY 25-26 Actuals (Unaudited) The Utility ended FY 25-26 in a strong financial position. • Actual Revenue: $1,591,701 o Stormwater Utility Fee: $1,543,779 o Late Fees: $1,120 o Interest Earnings: $46,802 •Actual Expenditures: $1,636,717 • Ending Fund Balance: $1,559,407 • ERU Count: o Residential: 19,348 o Commercial: 8,818 o Total ERUs: 28,166 These results reflect stable revenue performance, continued ERU growth, and controlled expenditures. 3. Updated FY 26-27 Projections (Budget -Based) As of August, the Utility's FY 26-27 projections remain consistent with the adopted budget. • Projected Revenue: $2,084,742 • Projected Expenditures: $2,374,474 • Projected Ending Fund Balance: $1,058,684 • Current ERU Count: o Residential: 19,542 o Commercial: 8,840 o Total ERUs: 28,382 ERU growth continues to trend upward, supporting long-term revenue stability. 4. Rate Increase Schedule (Confirmed) The Town Council adopted a three-year rate increase on April 17, 2024: • July 1, 2026: $4.50 $5.17 • July 1, 2027: $5.17 $5.84 • July 1, 2028: $5.84 $6.50 No additional rate adjustments are planned outside this schedule. The July 1, 2026 increase is now in effect and reflected in current revenue performance. 5. Capital Project Status (August Update) Staff continues to advance the FY 26-27 capital program. A full update will be provided in September, but current progress includes: • Catalina Ridge Access Ramp & Channel Improvements o Design remains on track; bidding anticipated early October o Construction expected after monsoon season. • Sierra Wash at Glover Road Erosion Mitigation o FEMA-funded project; bidding anticipated early October o Quarterly reporting remains active. • Nanini Wash at N Paseo Del Norte o Preliminary OPCC remains $125,000. o Field conditions continue to support the need for guardrail and scour protection. 6. What Will Be Presented in forthcoming commission meetings The September meeting will include the full rate review, consisting of: • Updated 10-year financial forecast • Reserve requirement analysis (operating, capital, emergency) • Long-range capital needs and project timing • Inflation impacts on O&M and construction • ERU growth projections • Scenario modeling showing rate sufficiency under multiple conditions • Benchmarking against regional stormwater utilities • Staff recommendation for rate direction This information will allow the Commission to make a formal recommendation on whether the current rate schedule remains sufficient. 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