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HomeMy WebLinkAboutPackets - Council Packets (1683)Town Council Meeting Regular and Study Session January 19, 2022 Town Council Meeting Announcements Upcoming Meetings Meetings are subject to change. Check the Town website for meeting status. Stormwater Utility Commission Jan. 20 at 4 p.m. Hopi Conference Room Board of Adjustment –CANCELED Jan. 25 at 3 p.m. Council Chambers Planning and Zoning Commission Feb. 1 at 6 p.m. Council Chambers Town Council Regular Session Feb. 2 at 6 p.m. Council Chambers Town Council Meeting Regular and Study Session January 19, 2022 Amy Senkerik 11th grade student at Ironwood Ridge High School Spotlight on Youth Marcelo Ibarra 8th grade student at Pusch Ridge Christian Academy Town Council Meeting Regular and Study Session January 19, 2022 Fiscal Year 2021/22 Financial Update Through November 2021 January 19, 2022 GENERAL FUND REVENUES REVENUE SOURCE Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Local Sales Taxes $ 21,157,707 $ 10,485,965 49.6%$ 23,538,980 Trending higher than expected; continued growth and strong recovery in categories impacted by COVID State Shared Revenues 13,729,923 5,659,989 41.2%13,729,923 Trending as expected Charges for Services 2,387,776 1,023,893 42.9%2,527,191 Trending higher than expected; improvement in recreation revenue Licenses and Permits 1,849,000 673,082 36.4%1,849,000 Trending lower than expected as SFR permits have slowed. Waiting to see how other permit sources come in Grant Revenue 6,065,290 85,340 1.4%8,260,785 Year -end estimate includes additional American Rescue Plan Act (ARPA) funds All Other 1,883,500 743,938 39.5%1,958,500 Includes other intergovernmental revenue, interest income and miscellaneous revenue TOTAL GENERAL FUND REVENUES $ 47,073,196 $ 18,672,207 39.7%$ 51,864,379 Budget variance due to outperforming sales tax collections and additional ARPA funds GENERAL FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Personnel $ 30,775,632 $ 11,073,955 36.0%$ 30,785,192 Year to date actuals are slightly below budget due to timing of payroll Operations and Maintenance 21,981,773 14,084,237 64.1%21,980,273 Includes $10M PSPRS payment from reserves Capital 1,095,175 132,779 12.1%1,095,175 Budget includes Westward Look improvements, IT needs and Parks and Recreation improvements Transfers Out 7,408,264 2,685,314 36.2%6,262,832 Actuals reflect a transfer for debt service. No principal payment due in FY 21/22 for pension obligation bonds TOTAL GENERAL FUND EXPENDITURES $ 61,260,844 $ 27,976,285 45.7%$ 60,123,472 Budget variance mainly due to debt service transfer for pension obligation bonds Budgeted Deficit/Use of Fund Balance: ($14.2M) Estimated Deficit/Use of Fund Balance = ($8.3M) Estimated Ending Fund Balance: $24.1M 44.8% of budgeted expenditures Exceeds Council 25% Policy by $10.7M GENERAL FUND HIGHWAY FUND REVENUES REVENUE SOURCE Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Licenses and Permits $ 25,000 $ 11,814 47.3%$ 25,000 Trending higher than expected. Revised year-end estimate likely State Shared Revenues 3,614,922 1,600,957 44.3%3,614,922 Trending higher than expected. Revised year-end estimate likely All Other 8,000 6,835 85.4%12,069 Additional revenues attributable to insurance recoveries TOTAL HIGHWAY FUND REVENUES $ 3,647,922 $ 1,619,606 44.4%$ 3,651,991 Major revenue sources trending higher than expected. Revised year-end estimate likely HIGHWAY FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Personnel $ 1,208,870 $ 458,824 38.0%$ 1,208,870 Trending as expected; % of budget reflects timing of payrolls Operations and Maintenance 616,655 187,091 30.3%616,655 Trending as expected; larger line-items include striping, field supplies, electricity and traffic signal maintenance Capital 2,265,000 611,352 27.0%2,265,000 Trending as expected; timing of pavement preservation program TOTAL HIGHWAY FUND EXPENDITURES $ 4,090,525 $ 1,257,267 30.7%$ 4,090,525 No budget variance projected at this time Budgeted Deficit/Use of Fund Balance: ($0.4M) Estimated Ending Fund Balance: $0.8M HIGHWAY FUND COMMUNITY CENTER FUND REVENUES REVENUE SOURCE Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Contracted Operating Revenues $ 3,622,385 $ 1,496,796 41.3%$ 3,940,742 All revenues sources trending higher than expected. Strong performance particularly in member dues and food and beverage Town Operating Revenues 697,580 477,380 68.4%963,000 Strong recovery in recreation program revenue Other Revenues 3,078,300 1,328,351 43.2%3,409,834 Includes 1/2 cent sales tax revenues, HOA contributions, interest income and other miscellaneous revenues. Higher than expected local sales tax TOTAL COMM. CENTER FUND REVENUES $ 7,398,265 $ 3,302,527 44.6%$ 8,313,576 Total revenues projected to exceed budget by $915,311 or 12.4%, due to sales tax, recreation program revenue, and golf revenue COMMUNITY CENTER FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 11/2021 % of Budget Year -End Estimate Notes Contracted Operating Expenditures $ 4,701,528 $ 1,957,701 41.6%$ 4,495,975 Trending better than expected. O&M and personnel costs are expected to come in under budget by $205,000 and $50,000 respectively, per contractor Town Operating Expenditures 1,086,581 485,409 44.7%1,102,666 Trending as expected Capital Outlay 132,500 35,286 26.6%132,500 Projected on budget at this time Transfers Out 1,868,519 168,519 9.0%168,519 Actuals reflect a transfer for debt service. Interest only payment due on Parks and Recreation bonds TOTAL COMM. CENTER FUND EXPENDITURES $ 7,789,128 $ 2,646,915 34.0%$ 5,899,660 Budget savings of $1.7 million in transfers out. Outperformance in contracted operating expenditures COMMUNITY CENTER FUND Budgeted Deficit/Use of Fund Balance: ($0.4M) Estimated Surplus: $2.4M Estimated Ending Fund Balance: $5.1M MONTHLY FINANCIAL UPDATE QUESTIONS? Town Council Meeting Regular and Study Session January 19, 2022 Town of Oro Valley, Arizona Independent Auditors’ Report Presentation to the Town Council Year Ended June 30, 2021 Offering You More Required Communications with Town Council and Management •Auditors’ Report on the Financial Statements –Unmodified opinion •Reasonable assurance the financial statements are fairly presented in accordance with GAAP •Report on Compliance and on Internal Control over Financial Reporting –Unmodified opinion Offering You More Communications with Town Council and Management •Henry + Horne’s Responsibility under U.S. General Accepted Auditing Standards (GAAS) –Stated in engagement letter dated May 3, 2021 –Reasonable assurance –Internal control properly designed and implemented •Significant Accounting Policies and Issues Discussed –Note 1 of Financial Statements –Difficulties Encountered in Performing the Audit –None encountered –Corrected and Uncorrected Misstatements –No uncorrected misstatements –Disagreements with Management –No disagreements –Management Consultations with Other Auditors “Audit Shopping” -None noted Offering You More Communications with Town Council and Management •Other Reports –Annual Expenditure Limitation Report (AELR) •Issued to the Arizona State Auditor General timely EEC Expenditure Limitation $105,435,626 Town Expenditures Subject to Limitation 88,865,786 Amount under the expenditure Limitation $ 16,569,840 –Single Audit •Town expended $10,200,670 of federal funds in fiscal year 2021 •Major Program was CARES Act and American Rescue Plan Act •Town received an unmodified opinion on the federal single audit Offering You More Findings and Recommendations •Findings –2021-001: Contributed Capital Assets •There was one material contribution in a prior fiscal year that was not properly identify and captured. The value of the asset being contributed resulting in a material adjustment necessary to properly state the financial statements •A prior period adjustment was required to properly report the beginning balances for capital assets and net position for the Governmental Activities on the Government-Wide Statements Offering You More Findings and Recommendations •Recommendations 1.Contributed Capital Assets •We recommend all assets being contributed and accepted by the Town Council are reviewed and reconciled by the finance department to ensure that they are accurately captured in the Town capital asset schedules and reports Offering You More Financial Highlights - 50 100 150 200 250 Assets Liabilities Net Position Revenues Expenses Total Government-Wide (In Millions) 2020 2021 Offering You More Financial Highlights - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 2019 2020 2021 Fund Balance -Governmental All Governmental Funds General Fund Offering You More Financial Highlights - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 Water Non-Major Enterprise Fund Fund Balance -Enterprise Funds 2019 2020 2021 Offering You More QUESTIONS? Town Council Meeting Regular and Study Session January 19, 2022 Proposed Changes to Town Code January 19, 2022 James Hazel, Jr. Presiding Magistrate Why change the current code? Create greater branding of Court within Town Create more options to ensure compliance with Court orders Create the authority to require Court users to pay a greater percentage of court costs Proposed Changes Change the name of the Court to Oro Valley Town Court This will create better branding with the Town Proposed Changes Increase fees to require Court users to pay a greater cost for use of the justice system This would allow for funds to be raised to help defer the costs of much-needed improvements to the Court building This would also allow the Prosecutor to recover a portion of the costs of providing prosecution services to the Town Proposed Changes Provide authority to place defendants on home detention Average cost of home detention is $20 a day Average cost of a day in Pima County Jail is $400 Town Council must specifically authorize use of home detention QUESTIONS? Town Council Meeting Regular and Study Session January 19, 2022 Proposed New Use and Standards for the Oro Valley Marketplace Town Council Study Session January 19, 2022 Purpose Study applicant’s requests: Item A: Reclassify the OV Marketplace wash to allow development of the entertainment district Item B: Permit apartments Item C: Revise code standards by amending the zoning (PAD) Adjust height for the apartments and hotels, landscape buffers and setbacks Drive-thru use Item D: Revised site and landscape design New building placement and Entertainment District Detailed parking and circulation design of undeveloped areas Address Town Council Study Session questions and comments Formal Public Hearing February 16 Proposed applications Subject Property Brief history of Oro Valley Marketplace Approved in 2006 and opened in 2008 Extensive public participation process Master Development Plan, Architectural Design Guidelines, Public Art Program and Master Sign Program 803K square feet of retail, restaurant and office space Multiuse path connecting to Loop trail system Restoration of significant open space areas Ownership of Big Wash transferred to Pima County for permanent protection Tangerine Road Pima County owned wash Need for Revitalization Current conditions 803K square feet planned Remaining undeveloped pads: 239K square feet (30%) Vacant shell spaces: 22 Challenges Online shopping or “Amazon” effect Structural fundamentals Traffic Income levels Demographics and density Need for Revitalization Average OV Marketplace Size in sq. feet 570,789 803,011 Population within 5-7 miles 211,061 129,826 Population per sq. mile 41,739 18,547 Sq. feet per person 2.9 6.2 Comparison to other regional commercial centers in Arizona OV Marketplace has too much supply and not enough people Chandler Gilbert Glendale Mesa Oro Valley Peoria Phoenix Scottsdale Tempe Queen Creek Item A –ESL Zoning Map Amendment Change type of open space Critical Resource Area (CRA) -> Resource Management Area (RMA) General Plan Growth Area Key Factors: Meets CRA plant density Constructed drainage channel Low resource value Fragmented by road crossings Narrow Bordered by asphalt parking lots Maintains existing drainage into Big Wash Central Open Space Area Only Item A –ESL Zoning Map Amendment Current Proposed ESL Flexible Design Options Item B –Request use of ESL Mixed-use Flexible Design Option Requires minimum of 25% Environmentally Sensitive Open Space (ESOS) Permits “off-site” ESOS Big Wash restoration: ~77 acres Dedicated to Pima County as open space Mixed -use option “Residential uses that are functionally integrated, including access, nonvehicular circulation and amenities, with commercial or employment uses may be approved within commercial zoning districts.” Item B –Request to use ESL Mixed-use Flexible Design Option -Well site Tangerine Road Tangerine Road Tangerine Road Prior to approval-2002 After approval-2008 Today -2021 Item C –Rancho Vistoso PAD Amendment Policies for Neighborhood 4 ONLY –Oro Valley Marketplace Building heights Noise Recreational amenities Setbacks Drive-thru uses Floor Area Ratio (FAR) Building heights are USE and LOCATION specific Item C –Rancho Vistoso PAD Amendment Location Proposed Use Permitted Height Proposed Height Additional Heigh for Arch. Features 1 Apartment N/A 75’None 2 Hotel 39’49’10’ 3 Hotel - Entertainment District 39’49’10’ 4 Apartment N/A 59’None 5 Hotel 39’49’10’ ~700 ft 1,000 ft + ~2,200 ft ~1,200 ft ~1,500 ft Building heights for all other sites will remain the same Tangerine Apartments Height and Design Requirements Oracle Apartments 75 feet: 20% of the building footprint 63 feet or less: 80% of the building footprint 59 feet: 50% of the building footprint 49 feet or less: 50% of the building footprint Noise Item C –Rancho Vistoso PAD Amendment Noise areas Patios in Entertainment District Central courtyard Study findings Meets noise requirements Conditions Patios are oriented away from neighbors Distributed sound system in courtyard Courtyard music must be shut off at 10 p.m. Recreation amenity integration Item C –Rancho Vistoso PAD Amendment Amenities throughout the center Apartment only areas Entertainment District CDO Multiuse path Item D –Revised Master Development Plan/CSP Proposed site changes –5 Development Areas Apartments (2) Tangerine 500 units with parking underneath Oracle 230 units with parking underneath Hotels (3) Tangerine 150 rooms Entertainment District 108 rooms Oracle Road 112 rooms Entertainment District and community gathering space Drive-thru use (1) Tangerine/Oracle right-of-way acquisition in process (purple areas) Tangerine Road Tangerine Road Key Map Access Access Multi-use path to remain Podium style with ground level parking 500 units 75 feet/5 stories above parking Dog ParkClubhouse Pool Gym Movie Theater ADOT ROW Development Area A –Tangerine Apartments Tangerine Road Tangerine Road Key Map 150 rooms 49 feet/4 stories PoolAccess Entrance/Drop-off ADOT ROW Development Area B –Tangerine Hotel Development Area C – Entertainment District Tangerine Road Key Map •Courtyard •Hotel with pool •Ground floor Restaurant and Retail •Retail space •Restaurants Tangerine Road Key MapDevelopment Area D –Oracle Apartment and Drive Thru Access Access Access Clubhouse Pool Apartments: Podium style with ground level parking 230 units 59 feet/5 stories above parking Screening Tangerine Road Key MapDevelopment Area E – Oracle Hotel 112 rooms 49 feet/4 stories Pool Access Entrance/Drop-off Access Item D –Revised Master Development Plan/CSP ORO VALLEY MARKETPLACE TRAFFIC GENERATION Traffic Generation Type Vehicle Trips Per Day (VTPD) Built sites as of 2021 (e.g. Walmart, Movie Theater, etc.)16,184 Approved for entire center in 2005 for all building pads (developed and undeveloped as of 2021)26,124 Projected for entire center with applicant’s proposed uses 28,978 Projected difference 2,854 ORO VALLEY MARKETPLACE TRAFFIC GENERATION (ORACLE ROAD) Traffic Generation Type Vehicle Trips Per Day (VTPD) Existing traffic south of Water Harvest Way 33,477* Full build-out based on approved design 39,441 Full build-out for applicant’s proposed design 41,153 Projected difference 1,712 Traffic The importance of this comparison is that existing entitled development vs. this proposal has a net impact of a 4% increase in overall traffic impact to Oracle Road. Oracle Road only Total Traffic Generation Future applications Conceptual Architecture Apartments Hotels Public Art Master Sign Program General Plan, Strategic Leadership Plan and Zoning Conformance General Plan Vision, Guiding Principles, Goals and Policies View Preservation Environment Protection of Riparian Area Economic Stability Compatibility with neighbors Fostering Social Gathering Spaces Strategic Leadership Plan (SLP) Objective on FY19/20 and FY21/22 SLP “Work with the owners of the Oro Valley Village Center [Marketplace] to develop a multi-faceted, mutually agreeable approach to attract and retain new investment and expanded customer base to that complex.” Zoning Code Neighborhood Meetings Two Neighborhood Meetings Informational video Four Focus Area Meetings Common themes: Need for revitalization View Impacts Traffic Noise Proposed apartments Planning and Zoning Commission •Recommends approval of Item A and conditional approval of Items B, C, and D •Use of right-of-way •Views •Condition added: Building Height for Tangerine Apartments •Connectivity •Condition added: CDO multiuse path lighting for pedestrian use (yellow dashed line) •Condition added: Address internal lighting gaps on primary anticipated pedestrian route (red dashed lines) Summary and Timeline Proposed site design changes: Item A: ESL Zoning Map Amendment Item B: Request to use Mixed-use Item C: PAD Amendment Item D: Revised Master Development Plan Next steps Town Council formal Public Hearing: February 16 PZC recommends approval of Item A and conditional approval of Items B, C, and D. Key conditions: Final Town and ADOT right-of-way acquisitions Redesign internal circulation for Tangerine Hotel on Water Harvest Way Tangerine Apartments building height Pedestrian safety lighting CDO multi-use path Existing internal lighting gaps Town Council Meeting Regular and Study Session January 19, 2022 Oro Valley Village Center A Reimagining of Oro Valley Marketplace by Town West Realty, Inc. January 19, 2022 Mayor and Council Study Session The Team Town West Realty •Family-owned developer in Tucson for over 40 years •Many successful local projects, owned, developed and reimagined Town West Realty The Town’s Vision: Aligned with Ownership •Exciting and unrealized opportunity at Oro Valley Marketplace •Attract retail •Attract talent •Attract tourism •Create live, work, recreate, dine and shop Prime Location •112 acres on SW corner of Oracle and Tangerine Rd. •Established area near existing facilities –direct connection to the Oro Valley Hospital and Innovation Park •Site was planned for dense development and was previously graded •New developments to North Challenges A B C D E F G H I J K VACANT PAD: PROPOSED APARTMENTS VACANT PAD: PROPOSED HOTEL VACANT PAD: PROPOSED RETAIL VACANT DRAINAGE WAY: PROPOSED PARK VACANT PAD: PROPOSED RESTAURANT VACANT PAD: PROPOSED RESTAURANT VACANT STOREFRONT: PROPOSED RETAIL VACANT PAD: PROPOSED RETAIL VACANT PAD: PROPOSED APARTMENTS VACANT PAD: PROPOSED HOTEL VACANT PAD: PROPOSED RETAIL A B C D E F G H I J K Lifestyle, Entertainment, Dining, Special Events, Residential, Hospitality Many national and international case studies have proven mixing uses and providing entertainment, dining, special events, multifamily, hospitality and retail in an accessible setting is the recipe for a vibrant and successful “Retaildential” center. Reimagining Opportunities A B C D E TANGERINE APARTMENTS •500 units •5 story building with corner loft units TANGERINE HOTEL •150 rooms •4 stories OASIS PARK LIFESTYLE & ENTERTAINMENT CENTER •4 story building: 3 story hotel with 108 rooms and ground floor retail/restaurant •Recreational water features, splash pads, sand beach/bar, shaded areas •Flexible event space, new restaurants ORACLE APARTMENTS •229 units •4 and 5 story building •2 levels of parking ORACLE HOTEL •112 rooms •4 stories A B C D E Conditions and Heights CONTEXT: •ORACLE: 10 feet to 88 feet elevated. [South to North) •TANGERINE: 10 /12 feet to 88 feet elevated [west to east] •CLOSEST HOMES: To west –Over 800 to 1700 feet and 15-50 feet elevated •VIEWS TO PUSCH RIDGE–from west are mainly OVER the site and will continue to be. HEIGHTS: •CURRENT PAD:39 feet plus 10 feet for architectural features = 49 feet •HOTELS:49 feet plus 10 feet for architectural features = 59 feet •APARTMENTS: Heights INCLUSIVE of architecture •Oracle Road: 49 feet and no more than ½ of building at 59 feet to the north (as Oracle Road rises) •Tangerine Road: Maximum 75 feet (same as Oro Valley Hospital) Public Events Recreational Opportunities Restaurants Hospitality Retail Pedestrian Connectivity Oasis Park Lifestyle & Entertainment Center N Winter ice rink Hotel and retail Outdoor dining Beach bar Shaded water splashpad Playground Oasis Park North N Town park Restaurants and nightlife Outdoor dining Beer garden Loop transit center Oasis Park South N Oro Valley Village Oasis Park Inspiration Board Oro Valley Village Oasis Park View from the west Recreational Water Feature Oro Valley Village Oasis Park View from the east Hotel Oro Valley Village Oasis Park View from the northeast Hotel Luxury Apartments –Examples Inspiration Board Courtyard Luxury Apartments Views Tangerine Road View Oracle Road View Luxury Apartments –Tangerine Rd. Approximately 500 units in 5 stories with corner loft units 75’ maximum height (only 20%) 909 covered podium parking spaces Connects to The Loop Meets design guidelines for Oro Valley Marketplace View from the southwest All parking provided on site and under building Luxury Apartments –Tangerine Rd. Approximately 229 units 4 and 5 story building on a lower elevation site 49’ with less than 50% of building at 59’ maximum height Two floors secure parking –434 spaces Central courtyard with swimming pool and recreational facility Meets design guidelines for Oro Valley Marketplace Luxury Apartments –Oracle Rd. View from Northwest Restaurant building in the foreground Luxury Apartments –Oracle Rd. • 150 rooms • 4 stories • Height: 49’ • 151 parking spaces at ground level Tangerine Hotel Oracle Hotel • 112 rooms • 4 stories • Height: 49’ • 114 parking spaces at ground level Economic Impact Overall Investment 1,816 jobs annually $60.5 million in wages annually $165.6 million of economic output annually Construction Cost: $336 million 3,981 person years of employment $164 million in wages $524.6 million in economic impact throughout Pima County Apartments (730 units) 261 jobs annually $9.7 million in wages annually $24.6 million of economic output annually Commercial & Tourism 1,555 jobs annually $50.8 million in wages annually Economic Output: $141 million annually Neighborhood Outreach Six Neighborhood Meetings •Two required •Four that were focused on issues of closest neighbors Primary Concerns •Traffic •Need for Apartments/Hotels •Heights •Water Conservation •Outdoor Lighting •Wildlife Movement •Noise •Drainage Over 400 petition signatures in support of project Our Vision We are committed to re-imagining the Oro Valley Marketplace into a vibrant place where residents and visitors can gather to work, play, shop, live and stay while enjoying the beauty of Oro Valley. Town Council Meeting Regular and Study Session January 19, 2022