Paul Loomis, Mayor
Al Kunisch, Vice Mayor
Paula Abbott, Council Member
K.C. Carter, Council Member
Helen Dankwerth, Council Member
Barry Gillaspie, Council Member
Terry Parish, Council Member
Vice Mayor Kunisch and Council Member Garner joined the meeting by telephone.
Council Member Gillaspie arrived at 6:02 p.m.
Steve Egan consultant for The Mercer Group presented the findings of the study.
Discussion noted the following:
~Fleet management was recommended, though there were a variety of scenarios for management.
~Having a fleet manager to oversee operations would keep costs down.
~The garage would be comprised of six bays, a parts room and a few offices.
~Storing parts and hiring skilled workers would incur additional costs.
~Currently, most vehicles carry a warranty and are serviced by a dealership.
~As the population grows to 50k, the Town will operate directly with the Federal Transportation Administration.
*The Munis program and other tools will aide in the transition.
~Transit staff located at a remote site would need open communications to be apprised of all that is happening in the Town and to feel appreciated.
~Public Works utilizes the Permits Plus program
*Efforts to add Highway Permits to the program are currently underway.
*Employees need complete training and time to fully utilize the functionality of the system.
Mr. Egan noted that the Public Works staff took a positive approach to implementing the suggested changes. He stated that Staff pushed to forge ahead.
Assistant Town Manager Jerene Watson noted that the study was 10 months old and that Public Works and the Information Technology departments have worked together along with a consultant on Permits Plus. She stated that the joint effort has made the program fully functional for Public Works.
Mr. Civalier discussed the next steps to implement from the study:
~Work with Mr. Egan to update strategic and implementation plans
~Create mission statements
~Provide direction for the future
Mayor Loomis requested a schedule for implementation and to determine the feasibility of fleet management.
Council Member Abbott requested a list of Public Works vehicles noting the age of the vehicles, and any maintenance/warranty agreements.
Water Utility Director Philip Saletta presented the pertinent elements to the Water Policy:
~Self supporting with rate based revenues
~Debt service coverage ration of 1.30
~No transfer of excess revenues to General Fund
~Cash reserves of at least 5% of budget
~Reduced or subsidized rates will be paid by General Fund
~Cost of service approach
*The Oro Valley Water Utility uses the American Water Works Association rate setting principles and methodology.
~Water rates and charges reviewed annually
~Avoid sudden or large scale shifts in rates
*Minimize rate shock
~Rate structure to encourage water conservation
~Rates to encourage use of reclaimed water.
Mr. Saletta discussed the Enterprise Operating Revenues and Revenue requirements:
Sources of Revenues Revenue Requirements Base rate Personnel Commodity rate Operations and Maintenance Interest income Power costs Other fees and charges Water Management Costs - Central Arizona Groundwater Replenishment District Groundwater Preservation Fee is transferred to the Alternative Water Resources Development Impact Fee fund Debt Service
Mr. Saletta noted the following regarding the proposed Water Conservation credit/charge:
~$1.00 credit for a customer using 2,000 gallons or less per month
~$1.00 charge for use of 19-24k gallons
~$2.00 charge for usage of 25-30k gallons
~$3.00 charge for usage of 31k gallons and over.
Discussion ensued regarding:
~The charges would fund the credit
*An approximate surplus of $10k per year could be put toward water conservation.
*Mayor Loomis stated that the money should remain in the Conservation line item of the budget.
~Vice Mayor Kunisch noted that families try to conserve but when they have 3-4 children they will not be rewarded.
Water Utility Administrator Shirley Seng presented the preliminary financial scenarios.
~16 financial scenarios
~Five year revenue and expense projections
~Phase in Groundwater Preservation Fee
~Base rates
~Commodity rates
~Conservation credits/charges
Ms. Seng presented the Customer Analysis:
~64% of customers use 10k gallons or less per month
~31% of customers use 5k gallons or less per month
~9.8% of customers use 2k gallons or less per month
~An average customer uses 9k gallons per month.
~Adding more tiers creates significant increases for large water uses.
It was clarified that tiers 2 & 3 have neither a credit nor a charge.
Council members stated that:
~The rates have the propensity to rise, therefore credits should rise also.
~Families not being able to achieve credits when trying to conserve based on the number of people in the home was a concern.
Economic Development Specialist Amanda Jacobs stated the purpose for the campaign:
~Support Oro Valley businesses and the local economy.
~Retain existing businesses in Oro Valley
~Increase sales tax revenues and decrease sales tax leakage to surrounding communities.
Ms. Jacobs stated that the campaign would begin November 2008 and continue until November 2009. She noted the strategies as:
~Target audience
~Oro Valley Business Navigator
~Key message and graphic elements
*Make citizens aware that Town funds are derived from sales tax.
*The tag line - "Your community depends on it."
~Partnerships:
*Northern Pima County Chamber of Commerce
-A place to advocate the campaign
*The Explorer newspaper
-Will offer a discounted rate for ads.
*Local businesses are excited as it shows the Town’s support of their business.
It was noted that the campaign kick-off and promotion would have a total cost of $13,600 for fiscal year 08-09.
Council Members offered additional suggestion:
~Send out postcards to citizens that offer a discount at Oro Valley businesses
*Collect the postcards from the businesses to track the demographics and success of the
campaign.
~Research the cost of producing re-usable shopping bags with the Oro Valley logo.
*Review color options for the logo.
~Consider giving away 100-200 bags at Council meetings at the start of the campaign.
~Recruit local businesses to offer discounts to customers toting the Town of Oro Valley bag.
Ms. Jacobs defined the measurements of success as:
~An analysis of sales tax revenues pre/post campaign.
~Merchant interviews
~Number of visitors to the Shop Oro Valley webpage and the number of visitors to the Business Navigator
MOTION: A motion was made by Council Member Carter and seconded by Council Member Gillaspie to adjourn the meeting at 7:46 p.m.
MOTION carried, 7-0.