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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 10/7/2003 * PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops, Workshop minutes are not approved by the City Council. MINUTES CITY OF GLENDALE CITY COUNCIL WORKSHOP October 7, 2003 1:30 p.m. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Thomas R. Eggleston, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, H. Phillip Lieberman, and Manuel D. Martinez ALSO PRESENT: Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Rick Flaaen, City Attorney; and Pamela Hanna, City Clerk 1. UTILITIES INFRASTRUCTURE NEEDS ASSESSMENT CITY STAFF PRESENTING THIS ITEM: Mr. Ken Reedy, Deputy City Manager; Mr. Roger Bailey, Utilities Director, Ms. Sharon Ibarra, Senior Management Assistant. OTHER PRESENTERS: Mr. Doug Kukino, Environmental Resources Director; Mr. Dan W. Meyer, P.E., Vice President, Black & Watch; Mr. Fair L. Yeager, P.C., CH2MHILL; and Mr. Thomas Galeziewski, P.E., HDR This is a request for City Council to review and provide direction on the utilities infrastructure maintenance plan and needs assessment studies. Timely replacement and/or rehabilitation of the city's utilities infrastructure will enhance the quality of life for Glendale residents. In addition, by implementing these recommendations, the city will remain in compliance with regulatory standards. This, in turn, will assure the best quality water supply for Glendale residents. The City Council approved the contracts for needs assessments related to the Water Master Plan, the water distribution system, and the sewer collection system. The city has provided water and wastewater services for more than 50 years. The utilities infrastructure includes water treatment plants, wells, reservoirs, water distribution, wastewater collection, effluent distribution, and wastewater treatment plants. All of these assets vary in life and value and in maintenance and replacement costs. As the city nears build out, the focus will be on citywide maintenance of the existing infrastructure. 1 Evaluations of the water and wastewater systems have recently been completed in order to provide staff with some level of detail about the future needs of the systems. Additional resource allocations will be necessary to maintain the infrastructure in which the city has already invested and which has been required for development. This cost will vary in the future to include pipe replacements and system enhancements related to changes in development and continued build-out of the remaining system. Many of these areas will require adjustments to the maintenance costs and also some changes in the Capital Improvement Plan. Failure to provide adequate resources will have an effect on the long-term life of the infrastructure and a potential for increased costs, disruption of service and city liability. The following consultants were hired and have completed their respective needs assessments: Black & Veatch —Water Master Plan CH2MHill —Water Distribution System HDR— Sewer Collection System Glendale residents will benefit from the expansion, replacement and/or rehabilitation of the water and wastewater infrastructure. Staff will be presenting the capital investment needs and rate impacts for the utilities infrastructure asset management plan at the November 4, 2003, Council Workshop. Mr. Reedy reviewed a brief history of Water and Sewer Utilities, noting Council directed staff in the early 1990's to organize a Citizens Committee known as Project WATERS. He stated, in 1995, the Committee recommended the city sell some of its capacity at the regional sewer treatment facility at 91st Avenue and Buckeye Road and build a local facility to treat and recharge water resources. He said, today, the city faces three challenges: 1) the need to increase the city's ability to treat the increasing volume of flows related to growth; 2) the need to continually improve the process that it owns to meet regulatory requirements; and 3) the need to maintain the infrastructure already in place. With regard to the maintenance of infrastructure, Mr. Reedy stated the Federal government has implemented new laws and regulations and the Government Accounting Standards Board adopted GASB 34 in 1999 requiring the city to track the cost of acquiring, owning, operating and maintaining all public works infrastructure. He said GASB 34 also requires inventories of all assets and evaluation of maintenance spending to determine that the condition of the assets is at or above minimum acceptable standards. Furthermore, the United States Environmental Protection Agency will be adding new regulations for sewer systems to prevent sewer system overflows. He noted the EPA also regulates the National Primary Drinking Water Regulations adopted in 1971, which are legally enforceable standards that apply to all public water systems, and the Clean Water Act that applies to all discharges from sewer systems. He said, locally, they are also required to obtain permits from and meet the requirements for Arizona Department of Environmental Quality, Arizona Department of Water Resources, and Maricopa County Department of Health Services. Mr. Reedy explained that, due to the city's rapid growth, the average age of the city's 2 system is quite young by national standards. He said, however, as the city approaches build out, maintenance of the system will become its biggest responsibility. Each year the city will need to rehabilitate the oldest and most problematic systems or it will get behind and large costs will loom ahead. He assured Council that both Utilities and Field Operations are working with Engineering to coordinate maintenance and rehabilitation issues to make the most of opportunities to combine construction projects and system repairs. He stated they will attempt to minimize costs and traffic disruptions by doing all repairs in one project and working with other utilities, such as cable telephone, gas and electric companies. Mr. Reedy explained the needs assessment they conducted looked at systems needed for growth and expansion, as well as the ongoing costs of keeping existing systems functioning within regulatory requirements. He explained most piping systems are assumed to have a useful life of 30 to 50 years, noting many of the systems in the older parts of the city are reaching that age. To complicate the evaluation process, he explained changes in standards and planning and zoning requirements resulted in increased flows that were not anticipated when the pipes were installed. He said many of the pipes are not in need of rehabilitation, so much as they are undersized and inadequate for the current flows. He noted some materials used in the past were also not as durable as expected, resulting in a loss of integrity and premature failures. Mr. Meyer stated the consultants have been working over the past two years to prepare the utilities infrastructure needs assessment. He explained their ultimate goal is to establish a program to ensure clean, safe, reliable and sustainable water and sewer services for this community for generations to come. He stated the objective of the needs assessment was to establish the conditions of the existing utility infrastructure, identify the cost of improvements, develop a replacement and rehabilitation schedule, support existing and future development, develop future CIP projects, implement security enhancements, and enhance the quality of life for Glendale residents. Mr. Bailey stated the Utilities Department serves approximately 230,000 residents with approximately 58,000 service connections, two water treatment plants with an average daily flow of 40 million gallons per day, two waste water treatment plants with an average daily flow of 10 million gallons and over 1,300 miles of water and sewer pipe lines. He noted the department employs only,126 full time employees. He stated the city also owns 13.5 million gallons at the 91st Avenue treatment plant. He identified some of the departments challenges, including an aging infrastructure, increased regulatory standards, rapid population growth and an increasingly complex water system. Mr. Meyer presented the Water Master Plan, explaining it provides a forward looking plan by which the Water Utility can support existing and future development, assist in developing future capital development projects, and enhance the quality of life for Glendale residents. He stated they looked at water quality and quantity, operational flexibility, institutional complexities and costs. He said the city's renewable water resources must be sufficient to meet demands and a drought management plan must be in place. He stated additional water production and distribution infrastructure is needed to support growth and high quality water is necessary to protect the public's health. He reviewed a chart showing the supply and demand of surface water resources for 2002 and at build out, stating surface water resources are fully utilized at build out. In response to Vice Mayor Eggleston's question, Mr. Meyer explained SRP supplies water to certain areas of the community they have defined as being on irrigation or "on 3 project". He said the areas are basically south of the Arizona Canal. Mr. Reedy noted once an area is developed and turned over to the city, the water resources once used for irrigation purposes are turned over to the city, treated and turned over to residents. Councilmember Goulet asked what will the city's population be at build out and at what point is build out expected to occur. Mr. Meyer explained the population predictions they used came from the city's General Plan which anticipates build out at 264,000 people in 2025. Mr. Reedy said, however, the city has no way of accurately predicting when it will reach build out. He said, based on current growth rates, the city will likely reach build out prior to 2025. Mr. Meyer stated the study also focused on water quality issues, explaining the city is responsible for meeting more stringent regulatory standards and higher consumer expectations. Councilmember Lieberman asked if the study looked at the city's quantity of water and how the current drought will affect the city in the future. Mr. Reedy said the city has monitored its water resources for the past several years as this is the seventh year of the continuing drought. He noted SRP reduced the allocation once available to the city to two-acre feet per acre. He said the city has been able to meet its requirements every year and an adequate supply currently exists. He stated, however, they are preparing a drought management plan should future situations call for resource management measures. Councilmember Lieberman asked how much excess capacity does CAP have and how many wells have been reopened. Mr. Reedy stated the city has not reopened wells because most of them have quality problems. He said staff is looking at what to do about the high nitrate levels in some of the wells since additional well capacity will be necessary in the future to meet peak day requirements. Councilmember Martinez asked Mr. Reedy to comment on what the city is doing with regard to drought management. Mr. Reedy said the city has done a number of things to reduce its demand for water, including an audit of the park system. He said citizens are not being asked at this time to reduce their usage, however, restrictions, ranging from alternate day watering to complete prohibition of outdoor water usage, could be imposed in the future. He stated the city's Water Conservation Coordinator is working to educate citizens on what they can do to wisely use water. Councilmember Martinez asked if the city uses effluent when possible. Mr. Reedy responded yes, noting Arrowhead Ranch uses treated effluent to water its medians and golf courses. He pointed out, once the lakes are full, the water has to be consumed every day because there is no other place to store it. He said additional recharge capacity will be added in the future since about three million gallons of effluent are produced every day. Councilmember Clark pointed out the population figures in the 2001 and 2003 studies performed by Black & Veatch remained constant at 264,000 people. She said, however, the projected average number of accounts in 2011 increased from 65,450 in the 2001 study to 66,820 in the 2003 study. She said projected total water sales increased from 16,957,000 to 17,609,800, an approximate gain of 700,000 gallons. She asked if the accounts refer to both residential and commercial accounts. Mr. Reedy explained the differences reflect the fact that the 2001 study was based on the old General Plan whereas the 2003 study was based on the new General Plan. Councilmember Clark asked if the 1,400 new accounts are expected to be on the commercial side. Mr. Reedy responded no. Councilmember Clark asked if the Coyotes Arena and Cardinal Stadium were figured into the 2003 consumption figures. Mr. Reedy explained the analysis for consumptive use looked at the arena and stadium and whether or not the city can meet their need. He said a more challenging issue is the 4 instantaneous peak in demand that will be created by the Cardinal Stadium during a Super Bowl game. Mr. Reedy assured Mayor Scruggs that the city will not be building capacity to meet a need that seldom occurs. He said the city's storage capacity meets the necessary requirements. Councilmember Lieberman asked what percentage of the CAP allotment is currently being utilized. Mr. Kukino said the city currently uses 100 percent of its CAP allocation and orders excess or unused CAP water as well because of the drought. Councilmember Lieberman noted Hoover Dam is presently at 55 percent of capacity. He asked if there has been any mention of reducing the amount of excess capacity or if the city's allocation could be reduced if the amount of water at Hoover Dam does not increase in the future. Mr. Kukino stated the Bureau of Reclamation and the CAWCD have indicated the CAP water supply should be adequate for the next 10 to 20 years. Councilmember Lieberman pointed out Colorado Springs, on the other side of the dam, has been subjected to severe water restrictions. Mr. Reedy explained a system of dams and reservoirs on this side of the Continental Divide supply water to Lake Mead. He said Colorado Springs was in an extreme drought situation, with reserves below 20 percent capacity. He pointed out, however, the reserves were filled within one year as a result of heavy snowfall and rain. He also mentioned that Colorado Springs is east of the Continental divide and not in the Colorado River water shed. Mr. Meyer said, as a result of the comprehensive analysis, several infrastructure improvements were recommended, including a re-rating of Pyramid Peak Treatment Plant, creation of a Zone 4 Water Treatment Plant; and a process upgrade and expansion of the Cholla Water Treatment Plant. He said, given the drought conditions, the city has to ensure groundwater will be available. He stated the master plan ultimately recommends a phased building of three groundwater treatment plants with each plant having a daily capacity of 10 million gallons. Councilmember Clark asked if the city previously discussed groundwater treatment plants. Mr. Reedy responded not in a detailed manner. He said, historically, the city has not had to treat groundwater. He noted the surface water treatment plants were constructed, in part, due to the high nitrate levels in the city's water supply. He said, however, there is an increasing need for additional groundwater capacity to meet peak day requirements. He explained the groundwater treatment plants are necessary to remove the nitrates from the well water. Councilmember Clark noted the state mandated all cities to get off groundwater by 2025. Mr. Reedy clarified the cities are not mandated to get off groundwater, but that they not consume more groundwater than they recharge. Councilmember Clark asked to what extent the city intends to utilize groundwater. Mr. Reedy said the city intends to use a piping system to collect and pump water from the wells that already have a good production capacity to a local treatment facility. Councilmember Lieberman noted the water in the well at 53rd Avenue and Orangewood measured 104 degrees. He asked for examples of nitrate levels and well capacities. Mr. Meyer said, while the 53`d Avenue and Orangewood well is available, the city does not currently utilize the well because of the temperature of the water. Mr. Reedy pointed out the nitrate level at that well is below the maximum acceptable contaminate level. He said the city will use wells that meet drinking water requirements without treatment, but additional capacity will have to come from wells that do not meet the necessary requirements. He assured Councilmember Lieberman that the city always chlorinates well water. 5 Councilmember Frate commented on the expense involved in removing nitrates. Mr. Reedy agreed removing the nitrates will increase the cost of bringing the wells online, stating, however, it represents the least expensive solution for meeting short term need. Councilmember Clark asked if the city can increase its CAP allocation. Mr. Reedy stated the CAP allocation will be increased by approximately 3,000 acre feet per year through the GRIC agreement which they hope to finalize in the near future. Mr. Kukino noted Arizona submitted an application to the Secretary of Arizona asking for 3,053 acre feet of additional CAP water. Mr. Reedy explained one acre foot equates to 326,000 gallons. Councilmember Clark asked if it would be more cost effective to build three groundwater treatment plants or purchase additional CAP water. Mr. Reedy explained the city will be able to locate the groundwater treatment facilities specifically where the demand exists. He said the cost of CAP water is related to its transmission, explaining the city would have to add more pipelines in order to achieve adequate transmission capacity. He assured Councilmember Clark that it is more cost effective to build the groundwater treatment plants than it is to build additional capacity at the CAP plant and additional transmission capacity. Mr. Kukino pointed out the city will need both CAP water and groundwater to fulfill future demands. Mayor Scruggs stated the city's current population is approximately 230,000. She asked for confirmation that the steps being proposed are necessary for the city to serve the anticipated increase of 34,000 people. Mr. Reedy clarified the proposed plan takes into account all residential, industrial and commercial development. Councilmember Clark referred to the figures cited in the previous studies, asking if the proposed steps are in response to approximately 1,400 more accounts and an additional 700,000 gallons of water. Mr. Reedy explained part of the rationale for the groundwater treatment plants is that some of the city's water supply is not available at certain times of the year. Mr. Reedy confirmed for Mayor Scruggs the city does not have a problem meeting current demand. Mayor Scruggs asked if the new groundwater treatment plants will be located in the area where growth is anticipated to occur. Mr. Reedy responded no, noting one will be located north of the Arizona Canal to provide off-project water. He explained the city currently uses SRP water off-project during certain times of the year, which the city is required to repay within 30 days. Mr. Kukino stated the city currently has 12 million gallons of capacity in wells, therefore the groundwater treatment plants will treat the city's existing wells as well as another 18 million gallons per day of groundwater. He explained the city currently uses excess CAP water because it is fairly inexpensive and is a renewable resource. He stated, however, excess CAP water is not likely to be available in another 15 years. Mayor Scruggs said, since her coming into office, the city has celebrated the closure of groundwater wells. She stated the wells will now be reopened and the water will be treated. Mr. Kukino noted the city has substantial stored water credits upon which it can draw once the plants are constructed. Mayor Scruggs asked where the two other plants would be located. Mr. Reedy said staff's recommendation is to locate one adjacent to or at the new water treatment plant, however, the third plant has not yet been cited. He stated the first plant will be required within the next five years. Mr. Meyer estimated each plant to cost approximately $25 million. Mayor Scruggs asked if any other options are available to the city. Mr. Reedy said other options exist, however, staff believes the plants will be necessary to provide adequate water supplies to meet the General Plan requirements. Mayor Scruggs pointed out staff previously advised against purchasing additional water rights as part of a settlement, asking what has since changed that now requires three new treatment 6 plants. Mr. Reedy stated the plants will prevent the city from having to build other capacity. He acknowledged the city used to celebrate closing its wells, stating, however, the city now recharges water and has built up credits. He noted other cities in the valley are buying credits from groundwater replenishment districts at a much higher cost. Mr. Kukino said, had the city not decided ten years ago to build the water reclamation facilities, the city would be looking for additional surface water which is more difficult to find. Councilmember Lieberman pointed out the Lower Colorado Three State Compact ends in approximately 2017, at which time California will have the right to sue for a larger percentage of water on the Colorado River. Mr. Reedy clarified the Zone 4 Western Area Water Treatment Plant is planned in the next three years, however, the two remaining groundwater treatment plants are scheduled to come online between 2010 and 2014. Mr. Kukino explained they are planning far into the future because the city will slowly lose its opportunities to drill new wells or recapture old wells as development occurs. Mr. Meyer clarified for Vice Mayor Eggleston that the Cholla Plant has a current peak capacity of 28 million gallons per day and the Pyramid Peak Plant currently delivers a peak capacity of 32 million gallons per day. He noted the Cholla Treatment Plant goes off line one month of the year, reducing the city's water supply by 28 million gallons per day. Mayor Scruggs asked why staff forecasts higher household demands. Mr. Reedy clarified the higher total demand is attributed to increased commercial and industrial development. Councilmember Martinez asked what risks are associated with other options the city could choose to take. Mr. Reedy explained each option has different risks and costs associated with them. He said staff believes the proposed plan represents the cheapest and most cost effective solution. He pointed out future changes to the General Plan could effect the amount of water needed in a given area. He explained the city might not be able to meet demand on the highest peak days of the year if the groundwater treatment plants are not built. He stated the city will evaluate whether there is still a need for the treatment plants as the time to construct them draws closer. In response to Mayor Scruggs' question, Mr. Reedy clarified the city is building for peak day demands, not instantaneous peak demands. Mr. Kukino explained the peak day capacity in 2003 totaled 78 million gallons, which required using all of the city's wells and the Cholla and Pyramid Peak Treatment Plants to capacity. He said the number of gallons needed in the future is estimated to reach 103 million per day. Councilmember Clark asked if the $25 million per plant cost estimate is reliable. Mr. Reedy said, while there will always be changes in costs, they have provided their best cost estimate. He noted the cost estimates are inflated, depending on the year construction is expected to occur. Councilmember Clark asked Mr. Reedy what other options were explored. Mr. Reedy referenced a study conducted when the Western Area Water Treatment Plant was sited, stating it considered several options, including expanding the Cholla and Pyramid Peak Treatment Plants and whether or not a new facility should be built and where. He said Black & Veatch modeled the information contained in the study and calculated the cost and believes the proposed plan to be the most cost effective solution. 7 Mr. Reedy confirmed for Vice Mayor Eggleston that the city would have a capacity of about 105 million gallons per day if the groundwater treatment plants are built versus a current capacity of 78 million gallons per day, including 12 million gallons per day in groundwater. He noted January is the city's lowest demand month of the year, running somewhere in the high 30 million gallons per day range. He said, while the plants do not run at peak levels all year long, they have to build to meet the maximum demand. Councilmember Frate asked how cities plan to provide for areas they annex. Mr. Meyer said Peoria, for instance, has a lot of unused CAP water, but is looking at groundwater resources. He stated other west valley communities are considering purchasing water from the new American Water Treatment Plant because they do not have the resources to build their own plant. He said other communities require developers to provide water before they are allowed to build their developments. Mayor Scruggs questioned why the old General Plan was used when a draft of the new General Plan was available by the time the study started. She asked what is in the currently funded CIP. Mr. Reedy said all projects currently underway are in the currently funded CIP, including the Pyramid Peak re-rating, Phase I of the Zone 4 Water Treatment Plant, and $7 million for the Cholla Water Treatment upgrade. In response to Mayor Scruggs's question concerning actual future capacity, Mr. Meyer offered to provide a break down of capacities at each of the water treatment plants and groundwater wells that do not require treatment. He pointed out the Pyramid Peak plant and groundwater capacities have to increase to make up for the loss of water when the Cholla Plant is taken off line. He noted the CAP has restrictions on the amount of water that can be taken in any given month. Mayor Scruggs asked that, before this item returns to workshop, staff identify on a chart what can reasonably be expected to happen as well as what might happen and the probability that it will happen. Councilmember Clark said the water needs assessment appears to revolve around three basic areas, growth, rehabilitation of the system, and federal mandates. She asked staff to include information on the degree to which impact fees offset costs related to growth. She said she would also like to see prioritizations in each of the three areas. Councilmember Frate encouraged the consultants and staff to present the information in a very basic, easy to understand way. ADJOURNMENT The meeting was adjourned at 3:30 p.m. 8