MINUTES
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
April 16, 2008
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CANADA DRIVE
REGULAR SESSION AT OR AFTER 7:00 PM
CALL TO ORDER
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PRESENT: |
Paul Loomis, Mayor
Al Kunisch, Vice Mayor
Paula Abbott, Council Member
K.C. Carter, Council Member
Helen Dankwerth, Council Member
Terry Parish, Council Member
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| EXCUSED: |
Barry Gillaspie, Council Member
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Members of Boy Scout Troop #299 led the audience in the Pledge of Allegiance.
Town Manager David Andrews reviewed the upcoming meetings and events.
Vice Mayor Kunisch reported that he attended Earth Awareness Day at Ironwood Ridge High School that was sponsored by Club Green. He stated that it was an enjoyable experience and it was a well attended event.
Council Member Abbott reported that a Preserve Initiative has been filed and it may impact the Town as it would apply to the Arroyo Grande State Land area to the north.
Town Manager David Andrews reported that the Town Manager’s Recommended Budget for fiscal year 2008/2009 will be delivered in one week.
ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING
At the request of Council, Items B, D, E and F were pulled for discussion.
MOTION: A motion was made by Council Member Dankwerth and seconded by Council Member Carter to approve the Consent Agenda minus items B, D, E and F.
MOTION carried, 6-0.
| A. |
Minutes - March 19, 2008 |
Discussion followed regarding the July and August 2007 operating expenses verses the total hours of ridership. (No action necessary on this item).
| C. |
Economic Development Division Monthly Report - March 2008 |
MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Abbott to approve Resolution (R)08-26, granting a deed of preservation easement to Pima County for the property known as Steam Pump Ranch located in Oro Valley as amended.
MOTION carried, 6-0.
Council Member Parish commented that he would not be able to support a motion for approval of intent to increase water rates as he felt that the Town should be rewarding people that conserve instead of increasing their rates. He also stated that he would like to see a regional comparison of water rates and see why it costs twice as much to deliver water in Oro Valley.
Water Utility Director Philip Saletta explained that the Notice of Intent only starts the process and sets a public hearing for May 21. He explained that no rates are being set or modified tonight; the Town is just making rate schedules available to the public for review. He also explained that the Notice establishes the maximum amount of a possible rate increase.
Mayor Loomis commented that the City of Tucson just provided a Notice of Intent to increase their rates another 8% and Mr. Saletta stated that Oro Valley’s rate increase would be 8.1% which also includes the Groundwater Preservation Fee (water rate increase alone would be 5.1%).
Mr. Saletta reviewed a brief PowerPoint presentation and highlighted the following:
~ Statutory requirement
- Establishes Public Hearing date for May 21
- Water Rates Analysis Report made available for public review.
~ Financial Considerations
- Analysis of three funds within the Water Utility (Enterprise Fund, Alternative Water Resources Development Impact Fee Fund (AWRDIF) and Potable Water System Development Impact Fee Fund (PWSDIF).
-Council Water Policy:
- Debt service coverage ratio of 1.3
- Cash reserves of 5% of budget
- Minimize rate shock
- Existing cash reserves and capital expenditures
- American Water Works Association rate setting principles & methodology.
~ Preferred Financial Scenario
- 5% increase in base rates and commodity rates for potable and reclaimed water.
- Increase potable construction water rate from $6.00 to $6.25 per 1,000 gallons.
- Increase reclaimed construction water rate equal to reclaimed commodity rate.
- Increase meter fees.
- Establishes $1.50 convenience fee for credit card transactions.
- Increase of Groundwater Preservation Fees (GRF) - Based on sustainable groundwater production and the balance between existing customers and new growth.
~ Customer Analysis
- Average customer has 5/8 inch meter and averaged 9,000 gallons per month last year.
PROPOSED RATES:
| Gallons | Existing Rates | Proposed Rates | Increase |
| 1,000 | $15.73 | $16.64 | $0.91 |
| 7,000 | $30.61 | $33.02 | $2.41 |
| 8,000 | $33.82 | $36.52 | $2.70 |
| 9,000 | $37.03 | $40.02 | $2.99 |
| 16,000 | $59.50 | $64.52 | $5.02 |
Mr. Saletta further reviewed a comparison chart for surrounding communities and explained that the neighboring water utilities are all in the same situation and rates are similar. He explained that the surrounding water utilities do not have a Groundwater Preservation Fee and Oro Valley’s rates include this fee. He also explained that with respect to Tucson, they have an extremely high bill for the higher tiers and Oro Valley’s rate settings look at the customer base.
Further discussion followed regarding:
- Encouraging conservation - rewarding those that conserve and being punitive to those that don’t.
- 44% of residential customers use water in Tier 1, 35% in Tier 2, a small portion in Tier 3 and 3% in Tier 4.
- Can’t charge a rate higher than published in Notice of Intent. If rates were changed, the process would have to start over.
- Being competitive with Tucson. (Tucson has a very large customer rate and have increased rates for many more years than Oro Valley. They have larger reserves, not as many pressure zones, etc. They have been collecting these fees for many years where as Oro Valley has not).
- Oro Valley’s wells are deeper than Tucson’s wells so it costs more to pump water.
- Possibly mandate pool covers and/or eliminate pools entirely. (Pool covers are good but water audits show that many people have them. If we set rates at reasonable levels, citizens will take these things into consideration).
- Possibly continue this item and bring back in one month. One of things to consider would be a hybrid between the Alternative and the Preferred Scenarios. Reevaluate the tier structure so those that using smaller amounts of water would see a reduced rate increase verses those that use larger amounts of water. Add additional tier(s) to provide more opportunities for people in lower tiers to save.
- Responsibility of the Water Utility Director to make sure that there are sufficient funds in the Enterprise.
MOTION: A motion was made by Council Member Parish and seconded by Council Member Dankwerth to continue Item E, Resolution (R)08-27, and to direct staff to reevaluate the rate structure and to bring back some alternatives with higher rates being put on the higher tiers in a fashion that rewards conservation.
MOTION carried, 6-0.
Council Member Parish thanked Mr. Parker and Mr. Trenary for their hard work. He then questioned why the Town’s citizens are paying fees to Pima County’s Regional Flood Control District and are also being taxed through the Oro Valley Stormwater Utility Fee.
MOTION: A motion was made by Council Member Parish and seconded by Council Member Dankwerth to appoint Mr. David Parker (primary) and Mr. Phil Trenary (secondary) to the Pima County Regional Flood Control District Advisory Committee.
MOTION carried, 6-0.
Finance Director Stacey Lemos reported that the Arizona cities and towns that impose local sales taxes have adopted the Model Cities Tax Code. She stated that the League of Arizona Cities and Towns coordinate regular updates to the Model Tax Code that promote uniformity with Arizona Revised Statutes and tax code compliance throughout the State.
Mayor Loomis opened the public hearing. There being no speakers, the public hearing was closed.
MOTION: A motion was made by Council Member Parish and seconded by Vice Mayor Kunisch to adopt Ordinance (O)08-08, the 2008 Amendments to the Tax Code of the Town of Oro Valley.
MOTION carried, 6-0.
Building Safety Director Suzanne Smith reviewed the Master Planning process and progress for the Rancho Vistoso Municipal Complex (RVMC). She explained that the RVMC Master Plan (including a proposed Town Hall addition) is now completed and is before the Town Council for approval.
Jaimie Curry, Deutsch Architecture Group, presented the site complex and design plan for the RVMC and the Town Hall addition.
~ Town Hall site:
- Renovate as needed at other buildings.
- Addition 9,648 square feet.
- Meet need through 2021: provide more customer-oriented parking with clear main entry to the development services building. Second story costs were provided as an add alternate.
~ Rancho Vistoso Municipal Complex:
- Police Facility and Water Administration - 28,120 sq. ft.
- Water Utility and Public Works Operations (including Transit) - 24,076 sq. ft.
Ms. Curry then reviewed aerial views from Rancho Vistoso Boulevard and Vistoso Village Way. She further highlighted LEED points considered during the Master Planning which include water efficient, native plant landscaping and cool roofs.
Ms. Smith reviewed the construction costs and project schedule:
- Total construction costs - $24 million
- Total estimated project costs - $33 million (includes development impact fees, permits, testing, furniture, etc. plus construction costs).
- Project design: July 2008-June 2009
- RVMC Construction: Site 5/2009-8/2009, Buildings 8/2009-11/2010
- Town Hall Construction: Addition 8/2009-8/2010, Renovations 11/2010-4/2011
Finance Director Stacey Lemos reviewed the project funding:
~ Project Cost - $33 million
- FY 2007/08 Budget set aside - $5.75 million
- Series 2005 Bonds Remainder - $1 million
- Total required funding - $26.25 million (new Excise Tax Bonds)
- Estimated Internal Cost Allocations (Estimated annual debt service $1.7 million)
- Water Fund - 20% - $340,000 per year
- Highway Fund 31% - $527,000 per year
General Fund 49% - $833,000 per year
Discussion followed regarding:
~ Possible use of solar panels (determine during design phase).
~ If deficit is realized due to State cut backs, the Finance Director would look at General Fund to see if there would be any capacity to help subsidize the Highway Fund. However, current projections show that costs should be able to be met.
~ Possible annexation to the north of Oro Valley was not considered during the design phase.
~ Layout of parking lot for Town Hall expansion maximizes parking spaces and keeps handicapped spaces closest to the buildings and keeps library art area intact.
~ LEED certification levels.
~ Heavy equipment at Calle Concordia - majority of equipment will move with completion of first phase. (Transit, engineering and water operations vehicles have already been moved).
~ Master Plan is based on a 10 year projection.
MOTION: A motion was made by Council Member Parish and seconded by Vice Mayor Kunisch to adopt Resolution (R)08-28, approving the Rancho Vistoso Municipal Complex Master Plan and Town Hall addition.
MOTION carried, 6-0.
Mayor Loomis recessed the meeting at 8:25 p.m. The meeting resumed at 8:32 p.m.
Martin Krawitz, representing the applicant, stated that the owner is in full support of the staff report and conditions attached to the approval of the development plan and landscape plan for Palisades of Oro Valley. He explained that the Development Review Board recommended approval of with three conditions. He explained that Condition 1, ensuring ADA parking slopes of no more than 2% and condition 2, providing that water be supplied by the Oro Valley Water Utility have been met.
Mr. Krawitz further reviewed the parking, bufferyard, landscaping and water harvesting basins. He also stated that the mechanical equipment would be mounted on the ground on the south building.
Planning and Zoning Administrator Sarah More reviewed the staff report and stated that Palisades of Oro Valley is a proposed commercial development on C-1 zoned property. She stated that there would be six buildings on site totaling 38,000 square feet. She further explained that twelve conditions on the previously approved grading exception have all been addressed except for a few technical items which will be addressed in the lighting plan and the improvement plan. She also stated that the applicant has provided for additional roadway capacity to serve the site. She reported that development plan conforms to the Zoning Code and that the Development Review Board and staff have recommended approval.
Discussion followed regarding the landscape design and wall placement, rip-rap, vegetation and drainage ditch.
Mayor Loomis opened the floor for public comment.
Jennifer Gillaspie, Oro Valley resident, stated that she was okay with the development/landscape plans if the conditions had been addressed.
MOTION: A motion was made by Council Member Parish and seconded by Council Member Dankwerth to approve OV12-02-11B, the request for a development plan and landscape plan for Palisades of Oro Valley with the conditions listed in Exhibit "A".
Exhibit A:
1. Ensure ADA parking slopes of no more than 2.0% in ANY direction including ortho and diagonal aspects across the parking place.(28 CFR Part 36 App A 4.6.3)
2. Provide a general note that water service will be provided by the Oro Valley Water Utility.
3. The transfer of ownership of the booster site shown on the plan must be to the Oro Valley Water Utility.
MOTION carried, 6-0.
Martin Krawitz, representing the applicant, reviewed architectural renderings as revised due to discussions with neighbors and the Development Review Board (DRB). He stated that the architectural design was approved by the DRB.
In response to a question from Council Member Abbott regarding building colors, Gus Roumbos, project architect, explained that the color palette was submitted to the Development Review Board for review and approval.
MOTION: A motion was made by Council Member Dankwerth and seconded by Vice Mayor Kunisch to approve OV13-06-36, request for architectural elevations for Palisades of Oro Valley buildings 2, 3, 4, and 5.
MOTION carried, 6-0.
Tory Schlievert, Management Assistant, stated that the Town Council adopted policy guidelines and procedures for funding community agencies. She explained that a subcommittee is being formed to review applications and staff is asking for two Council Members to serve on the committee.
MOTION: A motion was made by Council Member Parish and seconded by Council Member Abbott to nominate Vice Mayor Kunisch and Council Member Carter to serve on the subcommittee.
MOTION carried, 6-0.
MOTION: A motion was made by Council Member Parish and seconded by Council Member Carter to adjourn at 9:00 p.m.
MOTION carried, 6-0.