Should Oro Valley Spend $2.1M To Bury TEP Cables on Tangerine Road and on Oracle Road? That is the questions that our 7 Council Member will answer at the January 16 council meeting.
Prior to that, the council wants your input at a special session on January 9. Read on...
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"A Town ordinance establishes that all utilities be buried underground to preserve the natural beauty and scenic corridors; however, decisions on expenditures of this size-even if they fall under current Town ordinances-warrant substantial input from OV residents.
The topic is slated for public hearing at the January 16 Council meeting (6 p.m. at OV Town Hall), but Council is hoping to hear from residents prior to that meeting.
A special Study Session has been scheduled on Wednesday, January 9, 2013 at 6 p.m. in Council Chambers, 11000 N. La Cañada Drive. Project details will be discussed, and members of the community will have the opportunity to share their thoughts and concerns on the issue.
"Before this Council allocates $2.1 million dollars, I would like the Council to hear our residents' opinions," said Mayor Satish Hiremath.
Residents who are unable to attend the meetings may submit comments to Chris Cornelison, the Town's constituent services coordinator, at ccornelison@orovalleyaz.gov or 229-4711.
To learn more about the proposed TEP projects, please visit www.orovalleyaz.gov and click on the "Events" tab."(Source: Oro Valley Press Release, December 28, 2012)
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"Should Council wish to approve this agreement, authorization for the use of contingency reserves in the amount of $2.1 million is required. The current General Fund contingency reserve balance is $11.0 million. Expenditure of $2.1 million for underground electric facilities would reduce the balance to $8.9 million. The minimum balance required by policy is $6.7 million, or 25% of FY 2012/13 General Fund expenditures of $26.8 million." (Source)
The project in question has been posed to previous councils since 2006. No decision was made. TEP's position is that they will install underground lines only if there are engineering and safety concerns. TEP has deemed that none exist for this project. TEP's position is supported by the Arizona Corporate Commission. The Commission has ruled that costs of buying lines for non essential purposes should not be incurred by a utility; nor can such be included in determining its rates. Thus, either Oro Valley must pay for buying the cables or the cables will be above ground.
TEP is going to start this project so that it can provide better service to the Rancho Vistoso and Innovation Park community. A council decision is needed now.
The question is: Does burying these lines constitute best use of the Oro Valley contingency reserve?
So, for one night, January 9, you be a "council member." Show up. Voice your opinion. It's your $2.1M.
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6 comments:
The timing could not be worse for a $2.1M project. We have a number of retirees in Town living on fixed incomes. Families have had to tighten their belts in this down economy. Houses are still going under foreclosure. And now we are all faced with federal tax increases - not just the millionaires. Perhaps now is NOT the time to tax & spend or raid the contingency funds...
This seems like an extravegent expense in an uncertain economic environment. Is there a cost for waiting until better times are here?
I for one would like to see dollars put into human resource needs, rather than a "beautification" project.
Let's join forces to take the long view here! Once electrical wires and poles are installed above ground, the spectacular views along Oracle and Tangerine are marred for decades... and a precedent is set for reducing our quality of life in Oro Valley. Let's hope, too, that maintaining the open views and along our scenic Oracle/Tangerine/La Canada/Lambert corridors will bring the town and us all higher quality developments over the years (higher employment!) and will promote our tourist trade (hotel bed taxes!) for decades...
As I understand it from town Council postings, funds for this project would use about half of the current General Fund contingency "discretionary" reserve balance ($2.1M of the $4.3M excess now in the reserves over the town's required minimum balance of $6.7 million), or less than 10% of general fund expenditures (FY 2012/13 General Fund expenditures of $26.8 million). Spending town funds to uphold our established town ordinances (which state that all utilities for our scenic corridors should be buried) requires leadership, and this is why we have elected officials to work on our behalf.
Surely our Council can develop a way to promote the common "long term" good in this matter under consideration tonight and on January 16. It might discuss, for example, committing town funds now but ensuring that in the future that both power users and landowners who benefit directly from utility projects such as these do indeed contribute (or re-pay) significant portions of town outlays in the form of increased impact and/or utility fees. It might work out an agreement with TEP that funds are paid over at least two different budget years. Let's support our elected officials as they seek to make a more comprehensive, rather than an easier, decision. Thanks for your consideration.
Sorry azbb, TEP should pay for the lines to be buried, end of story.
They will save money in the long term.
I am shocked the Mayor and Coucil would ever consider this
If TEP is short on cash, why not lend the money to TEP and have them pay it back with interest. I can not support the people of OV subsidizing a multi million dollar public utility. They are traded on the NYSE and made 50.1 million last quarter. More info on the poor power company at http://ir.uns.com/
TEP doesn't bury in other jurisdictions per news article of 2-3 yrs ago, so won't bury OV lines without some incentives from OV.
Always looking for win- win scenarios,
Azbb
There are already 11 poles on Tangerine between La Cholla & La Canada; 17 poles from La Canada to Rancho Vistoso Blvd. Oracle Rd is ADOT right of way & also has poles currently. Personally, I find the sound walls along Oracle to be as ugly as the poles.
Nevertheless, please consider that we are likely to be hit with 3 Tax increases for this: 1)TEP will fund this at the amount they would pay to place service overhead: approx. $2.2M. These costs will be a pass through onto our electric bills.
2) If OV chooses to go underground, it will cost the Town $2.1M. If contingency funds are used, it will likely have to be "paid back." This might be in the form of an increase to our current 4% Town Utility Tax.
3) Lastly, TEP filed for a rate increase with the Arizona Corporation Commission in July 2012. If approved without change, it will take effect in mid-2013 and raise a typical residential customer’s bill just under 16 percent, or by about $13 per month.
Included in the request are two new surcharges; one that would allow to TEP to continue to collect fixed delivery service costs and the other will recover costs associated with compliance of governmental energy efficiency and environmental regulations. (If environmental regulations cause the Navajo Generating Plant to close, our electric bills will surely skyrocket.)
Coupled with increased healthcare costs, lower return on investments & the down economy, I'm particularly concerned with Town residents age 65 or older (26.1% of OV residents) who are likely on fixed incomes.
Just something to think about...
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