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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 1/15/2008 *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 JANUARY 15, 2008 1:30 P.M. PRESENT: Mayor Elaine M. Scruggs, Vice Mayor Manuel D. Martinez, and Councilmembers Joyce V. Clark, Steven E. Frate, David M. Goulet, Yvonne J. Knaack, and H. Phillip Lieberman ALSO PRESENT: Ed Beasley, City Manager; Pam Kavanaugh, Assistant City Manager; Craig Tindall, City Attorney; and Pamela Hanna, City Clerk 1. ANNEXATION AND UTILITIES UPDATE IN THE LOOP 303 CORRIDOR CITY STAFF PRESENTING THIS ITEM: Mr. Kenneth A. Reedy, P.E., Deputy City Manager; Mr. Jon Froke, AICP, Interim Deputy City Manager; and Mr. Roger S. Bailey, P.E., Utilities Director This is an update on annexation matters and water and sewer services in recently annexed and unincorporated properties west of 115th Avenue, in the West Glendale Planning Area. Working in conjunction with landowners, developers and private utilities in the area, city standards would be consistent within the new stand-alone service area. This allows the city to continue to maintain a high level of services as the population increases. Glendale 2025-The Next Step, the city's General Plan, includes specific goals addressing the need for growth management. Annexation is a tool that can be used by the city to direct and manage growth. The Council adopted Glendale's first Annexation Policy on December 16, 2003, and amended the policy on July 12, 2005. Luke Air Force Base contains approximately four square miles in the West Glendale Planning Area. The city annexed the base on July 25, 1995. The city did not provide water or sewer services to Luke Air Force Base because Luke owned the infrastructure to provide both water and sewer services. 1 Most of the area within the city's strip annexation area south of Peoria Avenue, west of 115th Avenue, north of Camelback Road, and east of Perryville Road lies within the service boundaries for private water companies. Although significant portions of the area are currently not served, in the past private water and sewer service providers have extended their utility lines into portions of this area. This area is within Glendale's Maricopa Association of Government's (MAG) 208 Planning Area, which provides for the review of sewer line extensions by the city. Water issues in this area include defining supply and demand, projecting infrastructure needs, individual capital improvement project and facility requirements, budgetary concerns, and design and construction considerations. Excluding Luke Air Force Base, current staff assessment shows that there are six private water companies and three private sewer companies certificated to provide services to the public in the West Glendale Planning Area. Current Council direction, as incorporated in the adopted Annexation Policy, is that viable private companies will provide water and sewer service for any annexed area located beyond the city's existing service area. As a result of this policy, Glendale currently does not provide water or sewer services west of the Glendale Regional Public Safety Training Facility. On August 14, 2001, Russell Ranch Phase I, located at Citrus and Camelback Roads, was platted without water or sewer services from the city. Russell Ranch contained approximately one-half square mile. Previous Council action made provision for water and sewer services to be provided by a private provider, Arizona American. The city entered into an intergovernmental agreement with the City of Surprise on March 3, 2004. The agreement allowed the City of Surprise to provide sewer service to two developments, Cortessa and White Tank Foothills, both of which are approximately 640 acres in size in the West Glendale Planning Area. The agreement requires Surprise to relinquish the projects back to Glendale, if and when Glendale determines that it desires to provide sewer service to the projects. The agreement also requires the projects, at their sole cost and expense, to disconnect from Surprise's sewer system and connect to Glendale's sewer system within one hundred twenty (120) days following receipt of Glendale's written notification that Glendale has determined it desires to provide sewer service to the projects. Recently, private developers have approached the city to provide sewer service in the West Glendale Planning Area, as these developers believe that the provision of additional sewer service by private utilities is no longer viable. 2 Accordingly, city staff has begun to meet with property owners and their representatives to explore the possibility of the city becoming the water and sewer provider within a portion of the western area, primarily serving a contiguous area of approximately 8,000 acres of largely undeveloped and farmed land. On July 12, 2005, the Council adopted the current annexation policy, which states that viable private companies will provide water and sewer service for any annexed area beyond the city's existing service area, and that consideration will be given to annexation requests submitted from any location within the Glendale Municipal Planning Area. At the February 12, 2005, workshop, "Annexation Scenario Impacts" was presented for discussion, a part of which was related to water and sewer service. On February 24, 2004, the Council approved an intergovernmental agreement with the City of Surprise which allowed the City of Surprise to provide sewer service to a two square mile area within Glendale's strip annexation area and permit the development of the Cortessa and White Tank Foothills subdivisions within unincorporated Maricopa County. On April 13, 1978, by Ordinance No. 1020 New Series, the city established the current strip annexation city limits. The potential annexation of property within the Loop 303 Corridor and the potential provision of water and sewer services to all or a part of the West Glendale Planning Area would provide the following benefits to the community: o The annexation of any new areas will require that any future development meet the Glendale General Plan requirements, as well as all other development. o Annexation would allow the city to guide and control growth and land uses in this area. o Allow Glendale's Utilities Department to provide uniform services to Glendale residents and properties within the City of Glendale. o Uniform standards for the city. A rate study and development impact fee study are currently being conducted to assess the budget impact to provide water and sewer services in the West Glendale Planning Area. This presentation is provided as an update regarding annexation efforts. Staff is also seeking guidance from the Council as to whether the city should explore the provision of water service and whether to work with the landowners and developers to construct sewer treatment capacity and backbone sewer collection infrastructure for the undeveloped properties in the service area west and north of Luke Air Force Base inside the Glendale planning area as a stand alone service area. 3 Mayor Scruggs asked for clarification on what was being asked of Council today. She asked if Council was being asked to change policies and give direction for staff to study possibilities west of Luke Air Force Base. In addition, she also inquired if there was any information on the stretch of 115 Avenue to Luke Air Force Base. Mr. Kenneth A. Reedy, P.E., Deputy City Manager, stated that there was no activity at this time; however some discussions had begun on a development project on a small stretch of that corridor. He noted that this was really about evaluating the possibilities of providing services in the far west area. The direction given today would be strictly west and north of Luke Air Force Base. Mr. Jon Froke, AICP, Interim Deputy City Manager, discussed a presentation given at the February 12, 2005, workshop; "Annexation Scenario Impacts" was presented for discussion, a part of which was related to water and sewer service. He discussed the benefits to the community with the potential annexation of property within the Loop 303 Corridor and the potential provision of water and sewer services to all or a part of the West Glendale Planning Area. He said they currently had six pending applications for annexation totaling 2,135 acres with more coming later this year for review on a Council workshop meeting. Mr. Reedy stated that it was important to note they were talking about 8,000 undeveloped acres west and north of Luke Air Force Base. He added their intentions were not to provide service to already established developed areas. Councilmember Lieberman inquired about the square mile between 115 Avenue and LAFB up for annexation. Mr. Froke stated it would not be the entire square mile. He explained that the owner, El Paso Natural Gas, has been in conversations with staff on annexing most of that square mile. Councilmember Lieberman inquired on what became of the underground storage facility for natural gas, which had been voted down. Mr. Froke said the proposal was dropped, however a new concept would most likely be proposed which deals with a mix of uses including employment, industrial and a small residential component. (located between El Mirage Rd, Dysart Rd., Glendale Ave., and Northern Ave.) Councilmember Clark discussed staff's conversations with property owners in the annexable area and the property owner's intention of deferring their cost of infrastructure and rate structure to the buyers. She asked why the owners were not just forming their own corporation and not involving the city. Mr. Reedy stated he was not certain; however most private property owners do not get into the utility, sewer, water business. According to the MAG208 Plan, the city has the right to serve this area specifically in sewer because no others can, unless the city allows it. Councilmember Clark asked if this was going to be a separate district, with its own rate structure. Mr. Reedy stated that it would be. She asked if the district's independence would extend to any bonding issue that might be required. Mr. Reedy stated they would keep it separate from the exsisting service. Councilmember Clark noted that she did not want this to turn out to be something where the existing rate payers would be paying the cost of development. Mr. Reedy stated that staff was in agreement that it should be a separate district. 4 Councilmember Frate inquired as to water availability. He stated that there had been a statement guaranteeing water source availability for the next 100 years, only east of 115 Avenue, however availability west of 115 Avenue was questionable. Mr. Reedy said they were still exploring and determining that issue with the property owners, as well as experts in that field. Vice Mayor Martinez commented that based on the discussion today, he supports further study of this issue, with the understanding that this would be a separate district. Councilmember Clark commented that she supports the idea of further exploring this issue. She added she would not support this application should it come back and demonstrate that the current rate payers would be incurring the cost. Mr. Reedy said they would be coming back with a draft agreement for Council to review and consider. Councilmember Goulet commented on citizen's anxiety where multiple providers of water or sewer were involved. Mr. Reedy stated that it would be staffs preference to have only one provider; however there was already another water provider in that area. He stated they would be exploring those issues and the best alternative. Councilmember Goulet asked if it was known when the study would be available for review, as well as the 100 year water supply issue. Mr. Reedy stated that at this point, there was no time line because they were still in the beginning stages. Mayor Scruggs commented on minutes that were taken three years ago on this issue. She said it was stated in the minutes that the city would move ahead with the annexation, with the understanding that the city would not be involved with providing water and sewer. She stated another, much larger, provider was believed to be interested. In addition, should the city become the provider, it would be under a separate district. She asked what went wrong with that scenario. Mr. Reedy stated that shortly after the agreement with property owners to start development in that area, Litchfield Park Service Company reneged on signing the agreement to provide service for the area. He added that the next candidate in line to provide service was Arizona American Water Company; however they have indicated that they will not sign an agreement to expand service because they have been in the process of being sold for the past three years. Mayor Scruggs asked if since the city did not have a Certificate of Convenience and Necessity to serve the area, could someone oppose the city in obtaining the certificate. Mr. Reedy stated that they city does not need a certificate because they were a municipal government and are allowed to extend their water supply if need be. Mayor Scruggs read from the 2005 minutes, and stated "most of the developers are required to join the ground water replenishment district and provide that water resource to the purveyor". She asked if this area would be a subscriber to the Central Arizona Groundwater Replenishment District (CAGRD). Mr. Reedy stated that it was hard to tell, however it was a strong possibility for part of the water supply in that area. He added, they were still evaluating how that will work and asked them to keep in mind that a large amount of this area was industrial and might contain a different water demand compared to other types of developments. He stated that they were still evaluating all resources but they did not foresee a need for additional water resources beyond what is currently available. 5 Mayor Scruggs commented that Mr. Gamage, an expert in water issues was in the audience today. She commented on discussions underway regarding water issues; anyone interested should attend these meetings. She noted that legislation has been drafted to be presented to the legislature in 2009. She encouraged land owners and developers to become involved and informed. Councilmember Knaack commented on reading the background information on this item since she was new to the Council. She said her initial reaction was that it was not wise to rely on outside providers for water and sewer and she had been proven correct with the current information provided here today. She added that the property owners would much rather rely on the City of Glendale than an uncertain source. Mayor Scruggs stated that the direction from the Council was to move forward with exploring the possibilities on this item with a very strong assertion not to blend the cost in with the existing Glendale rate payers, and if that was not possible, this item would not be supported by Council and could come to a halt. ADJOURNMENT The meeting was adjourned at 2:10 p.m. 6