PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Barry Gillaspie, Council Member Salette Latas, Council Member

EXCUSED:

Paula Abbott, Council Member K.C. Carter, Council Member Bill Garner, Council Member

MOTION: A motion was made by and seconded by to

MOTION carried, 4-0.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Latas to go out of Executive Session at 5:45 p.m.

MOTION carried, 4-0.

PRESENT:

Paul Loomis, Mayor Al Kunisch, Vice Mayor Barry Gillaspie, Council Member Salette Latas, Council Member

EXCUSED:

Paula Abbott, Council Member K.C. Carter, Council Member Bill Garner, Council Member

Mayor Loomis introduced Boy Scout Troop 270 from Pusch Ridge Christian Academy. He asked Senior Patrol Leader Joe Tresh, Patrol Eric Strong, Librarian Matt Kezer, Scott McKinley and Scott Standley to lead the audience in the Pledge of Allegiance.

Town Manager David Andrews discussed the upcoming Town meetings.

Council Member Latas announced that this was National Animal Shelter Appreciation Week.

Council Member Gillaspie reported that he and Council Member Latas toured Civano with Planning and Zoning Director Sarah More and members from the City of Tucson. He stated that he would like to present what they learned about sustainability issues in greater detail to Council in the future.

Town Engineer Craig Civalier reported that:
~Pima County Regional Flood Control will conduct three studies for the Town:
  *Hydrological and drainage study for Arroyo Grande
  *Drainage study for Highlands Wash
  *Update the Town-wide drainage study based on the new Pima County
    Hydrology model.
~Arizona Department of Transportation update on the project assessment of Oracle Road from Tangerine Road to the Pinal County line.
  *Noise walls are warranted on the west side of Oracle Road from Rancho Vistoso
    Boulevard to 1/4 mile north of the Town limits.
    -Public meeting will be noticed and held in January
~An Eagle Scout has requested for his Eagle Scout project to place mileage markers on all
  multi-use paths in Town.

Water Utility Director Philip Saletta reported that in Phase II of the Reclaimed Water project: ~An additional 1,000 acre feet of groundwater per year will be saved.
~25% of the groundwater supply will be saved for a total of 2,500 acre feet per year. 
~The project finished at 19% under budget for a savings of $1 million.

Communications Administrator Mary Davis announced that Saturday, November 8, 2008, "Council on your Corner" program will begin. She noted that this week, it will be held from 11:00 a.m. to 1:00 p.m. at Spotlight’s Grill featuring Council Member Salette Latas.

Ms. Davis informed the public that the El Tour de Tucson would be held this month. She noted that the route has changed this year and that a route map had been included in this month’s Oro Valley Vista newsletter. 

Oro Valley resident Richard Tracy noted that in times of financial difficulty the need for police services remains high. He urged Council to consider refraining from enacting a hiring freeze.

Council Member Latas stated that she requested this presentation. She noted that the Pima County Board of Supervisors presents an animal in need of adoption at every meeting.

Tammy Barrick represented Animals at Risk and introduced Farrah, an American Pit Bull Terrier that was hit by a truck and fractured in 7 places. She noted that Farrah was up for adoption and the fee was $99. She informed the audience that the dog had been spayed, microchipped, and was immunized.

Council Members pulled Items G and L for discussion.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Latas to approve the Consent Agenda with the exception of Items G and L.

MOTION carried, 4-0.

A.	Minutes - 9/17/08; 9/24/08; 10/01/08; 10/08/08

B.	Building Safety Activity Report - September 2008

C.	Coyote Run Monthly Report - September 2008

D.	Police Report - September 2008

E.	Public Safety Fire and Emergency Medical Service Providers Quarterly Report to Council - July 1, 2008 - September 30, 2008

F.	Appointment of Karen Lynn Chatterton and John Scheuring to the Parks and Recreation Advisory Board for terms to expire on June 30, 2010; and designating Alison C. Boelts as the alternate to be seated on the Board if a vacancy occurs prior to June 30, 2009

G.	Appointment of Jeremy Christopher and Robert E. Swope to the Board of Adjustment with terms to expire June 30, 2010; and appointing Jimmy Fields to fill an unexpired term due to expire June 30, 2009

Council Member Gillaspie introduced the newly appointed members of the Board of Adjustment.

Mayor Loomis congratulated the new board members and also recognized the newly appointed members of the Parks and Recreation Advisory Board.

MOTION: A motion was made by Council Member Gillaspie and seconded by Vice Mayor Kunisch to approve Item G.

MOTION carried, 4-0.

H.	Resolution No. (R)08-73 Adopting the Town of Oro Valley Department of Public Works Transit Services Division Prevention of Alcohol Misuse and Prohibited Drug Use Policy

I.	Resolution No. (R)08-74 Declaring that certain document entitled "the Town of Oro Valley Assurances Code", Section 26.6 Oro Valley Zoning Code Revised, a public record

J.	Resolution No. (R)08-75 Declaring that certain document entitled "the Town of Oro Valley Art Review Commission Scope and Duties and Public Art Provisions", Sections 21.8 and 27.3 Oro Valley Zoning Code Revised, a public record

K.	Resolution No. (R)08-76 Authorizing and approving a Mutual Aid Agreement with Arizona Water and Wastewater Agency Response Network (AZWARN)

L.	**Resolution No. (R)08-78 Approving agreements between the Central Arizona Water Conservation District and the Town of Oro Valley for water storage at the Avra Valley Recharge Project, the Lower Santa Cruz Replenishment Project and the Pima Mine Road Recharge Project

Council Member Latas requested clarification regarding how fees were charged and where the water was stored.

Water Utility Director Philip Saletta stated that the Town was obligated to replace groundwater to the Central Arizona Groundwater Replenishment District (CAGRD) for every acre foot pumped out of the ground.

He explained that in order to defer the cost of pumping groundwater and reduce payments to CAGRD, the Town stores water at locations such as the Groundwater Savings facility with Kai Farms. He noted that the operation and maintenance fees were $91 per acre foot plus $15 per acre foot to store the water. He stated that the Town saved $40 per acre foot by storing Central Arizona Project (CAP) water in these facilities.

MOTION: A motion was made by Council Member Gillaspie and seconded by Vice Mayor Kunisch to approve Item L.

MOTION carried, 4-0.

Water Utility Director Philip Saletta began with a background of the water rates.
He noted the Financial Considerations taken to assess the rates:
~Analyzed 3 funds:
  *Enterprise
  *Alternative Water Resource Development Impact Fee (AWRDIF)
  *Potable Water System Development Impact Fee (PWSDIF)
~Mayor and Council Water policies
  *Debt service coverage ratio of 1.3
  *Cash reserves of 5% of budget
  *Minimize rate shock
~Existing cash reserves
~Capital expenditures
~American Water Works Association rate setting principles and methodology
~Original report reviewed by Red Oak Consulting

He discussed the Water Rates Analysis:
~Water Rates Analysis Report
  *Preferred Financial Scenario
  *Alternate Financial Scenario
~Addendum
  *Scenarios in the Addendum performed to consider:
    -Rewarding those conserving.
    -Additional tiers and changing the range of tiers.
    -Reduction or no increase in base rate.
  *Additional Scenarios K, L, M, N and P create significant rate shock
  *Included scenarios with conservation charges

He stated that the Water Utility Commission reviewed all of the scenarios and recommended the Preferred Financial Scenario

Mr. Saletta presented the Customer Analysis:
~Scenarios R, S, K, L, M, N and P
  *Base rate not increased or was reduced
    -Problematical due to revenue decrease for fixed costs
  *Added more tiers
  *Created significant increases for large water users such as multi-family, commercial and irrigation
~Large water users:
  *La Cholla Air Park
  *Northwest Hospital
  *Ventana Medical
  *Sun City Community Association
  *Schools (athletic fields)
  *Apartment complexes

He explained the highlights of the Preferred Financial Scenario:
~Base rates and Commodity rates - 5% increase for potable and reclaimed water
~Four tier rate structure
  *Adjust usage in tiers for various meter sizes
~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
~Establish $1.50 Convenience Fee for credit card transactions by telephone and/or by mail

Mr. Saletta noted the following statistics:
~64% of customers used 10,000 gallons or less per month
~31% of customers used 5,000 gallons or less per month
~9.8% of customers used 2,000 gallons or less per month
~The average customer used 9,000 gallons of water per month
  *Would see a $2.99 per month increase under the Preferred Financial Scenario.
~He noted that the total monthly increase would be 8.1%. He explained that water rates would increase 4.4% and the Groundwater Preservation fee would increase 3.7%.

It was clarified that credit card convenience fees would not be charged to customers that pay in person.

He stated that the Groundwater Preservation Fee paid for Renewable Water:
~Existing debt for the Reclaimed Water System
~Future debt for CAP water 

Mr. Saletta noted that if adopted the new rates would become effective December 6, 2008. He stated that the Water Utility Commission and Staff recommended the Preferred Financial Scenario.

It was noted that the Water Utility Commission determined that financial obligations would be met without adding the Conservation Fee. Mr. Saletta added that the fee could be added if Council desired.

Mayor Loomis opened the public hearing at 6:33 p.m.

Oro Valley resident Ihor Kunasz questioned the decrease in groundwater when the Town was noted as saving water at a rate of 25%. He also asked how the base rates were calculated.

Mayor Loomis closed the public hearing at 6:35 p.m.

The Mayor requested that Mr. Saletta respond to Mr. Kunasz’s questions. Mr. Saletta stated that:
~The savings were calculated over the period of one year.
~The groundwater had decreased less than in previous years. 
~The aquifer was narrow though deep and showed a decrease more rapidly.

Water Utility Administrator Shirley Seng explained the calculations for water fees. She stated that the base rate applied to the first 9,000 gallons and the proposed rate was $13.91. She explained that the first 7,000 gallons was charged at a rate of $2.18 per 1,000 gallons and the last 2,000 gallons was calculated at $2.95 per 1,000 gallons. She noted that $0.55 per 1,000 gallons was charged for the Groundwater Preservation Fee.

Mayor Loomis asked Council Member Gillaspie to add a friendly amendment to direct staff to perform a cost of service study as part of the water rates analysis for next year.

Council Member Gillaspie accepted the amendment and requested discussion. He directed the Water Utility Commission to include in next year’s analysis opportunities and conservation measures associated with large water users, commercial and residential users. He requested that the WUC and Staff work together to understand the dichotomy among users. 

MOTION: A motion was made by and seconded by to

MOTION carried, 4-0.

Town Attorney Tobin Rosin presented the item noting that the proposed changes to the Oro Valley Town Code would make the Code congruent with Pima County's animal code.

Mayor Loomis opened the public hearing at 6:47 p.m. There being no speakers, he closed the hearing.

MOTION: A motion was made by Council Member Latas and seconded by Council Member Gillaspie to approve with the following amendments Ordinance No. (O)08-22, adopting Chapter 18, Animal Control Code of the Oro Valley Town Code and providing penalties for violations thereof. The amendments being to remove the wording on page 4 under Tags, item C, 2.  While engaged in races approved by the Arizona Racing Commission; and on page 5 under Dogs at large Prohibited; Exceptions, item C. 1. While participating in field trails, dog obedience classes, kennel club events and/or while engaged in races approved by the Arizona Racing Commission, provided the dog, is accompanied by and under the control of the dog's owner or trainer.

MOTION carried, 4-0.

Planning and Zoning Director Sarah More presented the item. She stated that the applicant, Vistoso Community Church requested a 7,000 sqare foot addition which would double the current size of the church. She noted that the Development Review Board recommended approval.

Discussion confirmed that the Town would build the sidewalk as it was a Town commitment and not a condition for approval since the sidewalk would not be on the actual property.

MOTION: A motion was made by Council Member Gillaspie and seconded by Vice Mayor Kunisch to approve OV12-97-22B, with Exhibit "A" striking planning subsection 1 for the development and landscape plan for Vistoso Community Church.
Exhibit "A":
Engineering:
1. Provide a cross-section for the area to the west and adjacent to the passenger drop-off as indicated in the redline plan set. The cross-section will provide clarification as to the 6 inch rise indicated by the proposal spot elevations in this area.
2. Revise grades at the ADA parking area to the south east of the building as indicated in the redline plan set. The maximum slope for ADA parking is 2% in any direction.
3. Show on sheet 2 where cross-section J/3 is located. It appears to be cut to the east of the new building through ADA parking. If so, then revise the specified minimum 2% slope to indicate a maximum 2% slope in any direction as required in ADA parking spots.
4. Provide a bar scale just below the north arrow as indicated in the redline plan set.
5. Provide adjustments to the keynote numbering to match text alignment.

Planning:
1. On sheet 1 of 4: Change note #35 to read: "Maximum building height = 39 feet" and "Required Setbacks = 15' building setback to front lot line, 10' setback to rear lot line."

MOTION carried, 4-0.

Town Engineer Craig Civalier presented the item. 

Discussion clarified that:
~Type I bike lockers are used to store bikes and bicycle owners would need to provide their own locks.
~Sun Tran can store bikes on the bus.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Latas to approve with conditions in Exhibit "A", OV12-08-17, The Town of Oro Valley Public Works Department requests approval of a development plan for an Oro Valley public transportation park and ride facility.
Exhibit "A":
1. A cultural site analysis shall be completed prior to issuance of any grading permit.
2. A Significant Resource Inventory (SRI) and all associated Native Plant Preservation Ordinance requirements shall be completed prior to the submittal of the Landscape Plan.
3. A landscape/hardscape plan shall be completed prior to the issuance of any grading permit.

MOTION carried, 4-0.

Town Attorney Tobin Rosen recommended tabling the item until a study session could be held.

MOTION: A motion was made by Council Member Gillaspie and seconded by Council Member Latas to table item 6 until after a study session regarding issues and possible solutions with Tucson Electric Power.

MOTION carried, 4-0.

Communications Administrator Mary Davis stated that the Town of Oro Valley had been invited to participate in the Southern Arizona Leadership Council’s upcoming "Community Conversation." She explained that this was a series of meetings that addressed topics important to communities.

Discussion ensued regarding:
~The importance of meeting and partnering with neighboring jurisdictions on issues that affect local communities.
~Some topics that Council would like to see discussed.

Ms. Davis noted that she would have the Town’s presentation to the Community Conversation’s planners by November 19, 2008.

MOTION: A motion was made by Council Member Gillaspie and seconded by Mayor Loomis nominate Vice Mayor Kunisch and Council Member Latas to serve on the 2008 Volunteer Recognition Selection Committee.

MOTION carried, 4-0.

Council Member Latas requested a study session regarding ordinances on gray water and water harvesting. The request was seconded by Council Member Gillaspie.

MOTION: A motion was made by Vice Mayor Kunisch and seconded by Council Member Gillaspie to adjourn at 7:34 p.m.

MOTION carried, 4-0.