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GLENIE
MINUTES OF THE
GLENDALE CITY COUNCIL MEETING
Council Chambers
5850 West Glendale Avenue
April 27, 2010
7:00 p.m.
The meeting was called to order by Mayor Elaine M. Scruggs, with Vice Mayor Manuel
D. Martinez and the following Councilmembers present: Joyce V. Clark, Steven E. Frate, David
M. Goulet, Yvonne J. Knaack, and H. Philip Lieberman.
Also present were Pam Kavanaugh, Assistant City Manager; Nick DiPiazza, Deputy City
Attorney; and Pamela Hanna, City Clerk.
COMPLIANCE WITH ARTICLE VII, SECTION 6(c) OF THE GLENDALE CHARTER
A statement was filed by the City Clerk that the 4 resolutions and 1 ordinance to be
considered at the meeting were available for public examination and the title posted at City Hall
more than 72 hours in advance of the meeting.
Mayor Scruggs welcomed the Apollo High School Student Council.
APPROVAL OF THE MINUTES OF THE APRIL 13, 2010 CITY COUNCIL MEETING
It was moved by Goulet, and seconded by Clark, to dispense with the reading of the
minutes of the April 13, 2010 Regular City Council meeting, as each member of the Council had
been provided copies in advance, and approve them as written. The motion carried unanimously.
BOARDS, COMMISSIONS AND OTHER BODIES
BOARDS, COMMISSIONS AND OTHER BODIES
This is a request for City Council to approve the recommended appointments to the following
boards, commissions and other bodies that have a vacancy or expired term and for the Mayor to
administer the Oath of Office to those appointees in attendance.
Effective Expiration
Arts Commission
Janine Barbour Ocotillo Appointment 04/27/2010 08/23/2010
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Citizens Transportation Oversight Commission
William Sheldon Mayoral Appointment 04/27/2010 11/25/2010
Commission On Persons With Disabilities
Laura Travis Cactus Appointment 04/27/2010 02/27/2012
Historic Preservation Commission
Jacoba Worsdell Ocotillo Appointment 04/27/2010 04/13/2012
Gary Hirsch Cactus Appointment 04/27/2010 04/13/2012
Judicial Selection Advisory Board
Judge Randall Warner Appointment 04/27/2010 04/23/2013
Library Advisory Board
Allison Tedford—Teen Cholla Reappointment 05/27/2010 05/27/2011
Personnel Board
Al Lenox—Chair Barrel Appointment 04/27/2010 12/22/2010
Planning Commission
Robert Petrone Cholla Appointment 04/27/2010 03/25/2012
Bruce Larson Mayoral Appointment 04/27/2010 03/25/2012
The recommendation is to make appointments to the boards, commissions and other bodies and
administer the Oaths of Office.
It was moved by Lieberman, and seconded by Frate, to appoint Janine Barbour to
the Arts Commission; William Shelton to the Citizens Transportation Oversight
Commission; Laura Travis to the Commission on Persons with Disabilities; Jacoba
Worsdell and Gary Hirsch to the Historic Preservation Commission; Judge Randall
Warner to the Judicial Selection Advisory Board; Allison Tedford as the Teen
representative to the Library Advisory Board; Al Lenox to the Personnel Board; and
Robert Petrone and Bruce Larson to the Planning Commission, for the terms listed. The
motion carried unanimously.
Mayor Scruggs called the appointees forward and issued the oath of office.
PROCLAMATIONS AND AWARDS
RECOGNITION OF COMMUNITY SERVICE FOR JOHN FERNANDES
This is a request for City Council to recognize Mr. John Fernandes for his dedicated service to
the Citizen's Transportation Oversight Commission.
Glendale's Citizen's Transportation Oversight Commission (CTOC) was established to ensure
public input and government accountability. CTOC has also been responsible for transportation
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fund expenditures to ensure that the voter-approved projects in accordance with Proposition 402
are completed in a timely manner. Each year, CTOC reviews and approves a financially
balanced Long Range Transportation Plan that includes a review of projects, cost effectiveness,
completion dates, and other funding sources that are leveraged using transportation sales tax
funding. In addition, an Annual Report is approved each year by CTOC that documents the
status of projects, including costs and revenues as well as significant changes to project scope
and completion. CTOC also advises the Council on the Glendale Onboard (GO) Transportation
Program, public transit and other alternative modes of transportation, and regional transportation
issues.
Mr. Fernandes served as a member of CTOC from March 2008 to March 2010. During his
tenure, Mr. Fernandes helped to make recommendations that provided direction and funding for
Glendale transportation projects and programs and he participated in the recent update of the
Glendale Long Range Transportation Plan. Mr. Fernandes actively participated in Commission
discussions on a variety of transportation issues and attended public involvement events
scheduled for the GO Transportation Program each year.
The recommendation is to present the plaque to Mr. John Fernandes for his contributions and
dedication to serving the citizens of Glendale.
Mayor Scruggs called John Fernandes forward to accept the award.
2010 PROCLAMATION FOR NATIONAL HISTORIC PRESERVATION MONTH
This is a request for City Council to proclaim May 2010 as National Historic Preservation
Month. Becky Shady, Chair of the Historic Preservation Commission, will be present to accept
the proclamation.
The proclamation contributes to Council's goals of one community with a vibrant city center, by
strengthening the public perception of downtown Glendale, and one community with quality
economic development, by capitalizing on the unique character and identity that defines
Glendale.
The National Trust for Historic Preservation recognizes May as National Historic Preservation
Month. Each year is distinguished with a theme representing some aspect of historic
preservation, and the theme for 2010 is"Old is the New Green."
This year Glendale celebrates its Centennial in recognition of 100 years of incorporation as a
city. Included in the centennial festivities will be three Centennial Historic Preservation Bus
Tours which will be conducted concurrently on May 22, 2010, to provide the public with an
opportunity to tour some of Glendale's historic properties that are listed on the National Register
of Historic Places.
The recommendation is to present the proclamation to Becky Shady, Chair of the Historic
Preservation Commission, proclaiming May 2010 as National Historic Preservation Month.
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Mayor Scruggs called Becky Shady forward to accept the proclamation.
CONSENT AGENDA
Items on the consent agenda are of a routine nature or have been previously studied by the
City Council at a work session. They are intended to be acted upon in one motion.
Ms. Pam Kavanaugh, Assistant City Manager, read agenda item numbers 1 and 2 and Ms.
Pamela Hanna, City Clerk, read consent agenda resolution item numbers 3 and 4 by number and
title.
1. BINGO LICENSE NO. 4-4074, ST. GEORGE CHURCH
This is a request for City Council to approve a new Class A bingo license for St. George Church
located at 5310 West Northern Avenue. The Arizona Department of Revenue, Bingo Section
application was submitted by Daniel Torkhan.
The location of the establishment is 5310 West Northern Avenue, and is located in the Barrel
District, zoned R-4 (Multi-Family Housing). The population density is 20,846 persons within a
one-mile radius. This is a new Class A bingo license, therefore, the approval of this license will
increase the number of bingo licenses in the city by one. The number of bingo licenses within
the City of Glendale is as listed below.
Series Type Quantity
Class A Limited gross revenue up to $15,600 annually 14
Class B Limited gross revenue up to $300,000 annually 4
Class C More than $300,000 gross revenue annually 3
Total 21
The City of Glendale Planning, Fire, and Police Departments have reviewed the application and
determined that it meets all technical requirements.
Forward a recommendation for approval to the Arizona Department of Revenue, Bingo Section
for St. George Church.
2. AWARD PARK AND FACILITY LANDSCAPE MAINTENANCE AGREEMENT
This is a request for City Council to authorize the City Manager to enter into an agreement for
park and facility landscape maintenance services with Mariposa Landscape Arizona, Inc. in an
amount not to exceed $534,000.
This agreement supports Council's goals of one community with strong neighborhoods and
providing high-quality services for its citizens. Safe, well-maintained, and aesthetically pleasing
parks and facilities are an asset to the community, and encourage residents to utilize these
amenities on a regular basis.
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Efforts to consolidate contractual sites with other city departments have resulted in efficiencies
in both services and cost savings to the city. The total contract amount is $192,434 less than the
previous contract, and 13 additional city locations will be serviced. Nine proposals were
received to provide landscape maintenance services for a total of 60 parks and 19 city facilities
including fire stations, community centers, public libraries, the Adult Center, and City Hall. An
evaluation panel consisting of staff from Parks and Recreation and Field Operations reviewed the
submitted proposals and recommends Mariposa Landscape Arizona, Inc. as the most qualified to
perform the work.
Landscape maintenance includes but is not limited to: mowing and care of turf, shrub, and tree
pruning, fertilization, weed control, and trash collection. Service shall begin May 1, 2010, and
continue for one year. The proposal specifications contain an option clause that will allow the
City, at the discretion of the City Manager, to extend this agreement for five additional years in
one-year increments.
Council had previously approved an agreement for parks and facility landscape maintenance to
Mariposa Horticultural Services on March 22, 2005.
Landscape maintenance enhances safety while providing aesthetically pleasing parks for
residents and visitors.
Funding is available in the Parks Maintenance Operating and Transportation GO budgets.
Grants Capital Expense One-Time Cost Bud'eted Unbudgeted Total
X $534,000
Account Name, Fund,Account and Line Item Number:
Parks Maintenance, Account No. 1000-13040-518200,$497,838
Elsie McCarthy Park Maintenance, Account No. 1885-13235-518200, $2,162
Transportation GO, Account No. 1660-16590-523600, $34,000*
*Landscape maintenance funding is provided for 0 & M as part of completed GO Transportation
construction projects.
The recommendation is to authorize the City Manager to enter into an agreement for landscape
maintenance services with Mariposa Landscape Arizona, Inc. in an amount not to exceed
$534,000. The City Manager is further authorized to extend this agreement, at his sole
discretion, for an additional five years in one-year increments.
CONSENT RESOLUTIONS
3. ADJUSTMENTS TO LIQUOR LICENSE FEES
This is a request for City Council to adopt a resolution authorizing the City Manager to amend
the application and annual liquor license fees and establish a liquor license fee for special events.
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This item addresses Council's goal of a city that is fiscally sound by pursuing and maintaining
revenue streams that support service delivery through sound financial practices.
In an effort to ensure that fees are updated and consistent with other Valley cities, a study was
conducted regarding liquor license application and annual fees. Liquor application and annual
licensing fees were last adjusted in 2003. Currently our fees are among the lowest as compared
to other valley cities.
It is recommended that Glendale increase its application fee to $1,000 per application in order to
bring it in line with cities that are similar in size.
It is recommended that Glendale implement a $25 per day fee for special event liquor licenses.
Based on historical information related to the number of special event liquor license applications
and the number of days for each event, this fee would help recover the costs of processing the
licenses.
It is recommended that the fees be adjusted as shown in the following summary table.
Range of Annual Glendale's
License Fees Charged Current Proposed Proposed
Series Type by Surveyed Cities Adjustment for New Fee
Annual
(excludes application
License Fee Glendale's Fee for Glendale
fee)
6 (Bar—All Liquor) $500 - $1,440 $800 Increase $400 $1,200
7 (Beer& Wine Bar) $100 - $600 $400 Increase $150 $550
8 (Conveyance) $0 - $500 $0 Increase $400 $400
9 (Liquor Store—All $160 - $600 $400 Increase $100 $500
Liquor)
10 (Liquor Store— $100- $550 $200 Increase $160 $360
Beer/Wine)
11 (Hotel/Motel) $400 - $1,440 $400 Increase $800 $1,200
12 (Restaurant) $400 - $1,440 $400 Increase $800 $1,200
14 (Private Club) $0 - $550 $200 Increase $160 $360
Also, it is recommended that a fee be established for Series 8 licenses that address liquor sales on
conveyances such as boats, trains, and airplanes. While this type of license is not commonly
issued, Glendale currently has no fee for this category. Therefore, it is recommended that we
establish a fee for the category as shown in the preceding chart.
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All of these fees will become effective July 1, 2010. Since annual renewals take place in
January, only new license applicants would be affected from July through December 2010. A
mailing that outlines the new fees will be sent to all current City of Glendale liquor license
holders. This would be approximately 400—450 vendors. A public campaign will be conducted
through city publications and the city's Web site. In addition, those entities that sought a special
event liquor license in the past year will be notified by mail.
Liquor fees were previously adjusted in 2001 and 2003.
Based on historical information related to the number of liquor license applications and the
number of active and pending liquor licenses by series, the proposed adjustments to the fees
could result in over $171,300 of additional revenue each year.
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
City Manager to amend the application and annual liquor license fees and establish a liquor
License fee for special events.
Resolution No. 4366 New Series was read by number and title only, it being A
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, AMENDING THE APPLICATION AND ANNUAL LIQUOR
LICENSE FEES PURSUANT TO GLENDALE CITY CODE, CHAPTER 4
(ALCOHOLIC BEVERAGES); ESTABLISHING A LIQUOR LICENSE FEE FOR
SPECIAL EVENTS; AND SETTING FORTH AN EFFECTIVE DATE.
4. INTERGOVERNMENTAL AGREEMENT WITH SALT RIVER PROJECT:
IMPROVEMENTS TO ZONE 4 GROUNDWATER PROJECT
This is a request for City Council to adopt a resolution authorizing the City Manager to enter into
an intergovernmental agreement with Salt River Project (SRP) for improvements to the Zone 4
Groundwater Project at the Oasis Water Campus.
One of Council's goals is one community with high-quality services for citizens. These
improvements will allow the city to continue to provide high-quality water service to residents
and businesses.
The City of Glendale plans to permanently install SRP power to the Sahuaro Ranch well site that
is part of the Zone 4 Groundwater Treatment Project. In order for this installation to proceed, the
city must enter into a contract with SRP. The contract is to design and install new underground
wires for the site. In 2003,the city adopted a Comprehensive Water Master Plan that addressed
future water availability by building groundwater treatment plants to integrate well water as
needed to meet service demands. The contract for updating and installation of permanent power
for this well site is a vital component in continuing to assure a reliable source of water.
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The Comprehensive Water Master Plan was presented to Council over a span of four workshops
beginning on October 7, 2003 and ending on December 16, 2003. The Comprehensive Water
Master Plan was updated in 2008 to include the Ground Water Master Plan.
This project will benefit the community by enhancing the overall system reliability and
optimizing operations to ensure continued delivery of high-quality water. It will also keep the
city in continued compliance with strict Federal and State regulations.
Funding is available in the FY 2009-10 Capital Improvement Plan. Operating costs associated
with this project once completed are minimal and will be absorbed by the Utilities Department
operating budget.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X X $18,247
Account Name, Fund,Account and Line Item Number:
Zone 4 Groundwater Treatment Plant, Account No. 2400-61036-550800, $18,247
The recommendation is to waive reading beyond the title and adopt a resolution authorizing the
City Manager to enter into an intergovernmental agreement with Salt River Project for
improvements to the Zone 4 Groundwater Project at the Oasis Water Campus in an amount not
to exceed $18,247.
Resolution No. 4367 New Series was read by number and title only, it being A
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE ENTERING INTO OF
AN INTERGOVERNMENTAL AGREEMENT ENTITLED, "CITY OF GLENDALE
DISTRIBUTION DESIGN AND CONSTRUCTION CONTRACT" WITH SALT RIVER
PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT FOR THE
GLENDALE ZONE 4 GROUNDWATER PROJECT.
It was moved by Frate and seconded by Knaack, to approve the recommended
actions on Consent Agenda Item Nos. 1 through 4, including the approval and adoption of
Resolution No. 4366 New Series, and Resolution No. 4367 New Series; and to forward
Bingo License No 4-4074 to the Arizona Department of Revenue Bingo Section, with the
recommendation for approval. The motion carried unanimously.
ORDINANCES
5. LEASE AGREEMENT: BANK OF AMERICA PLAZA, SUITE 255
Larry Broyles, P.E., City Engineer, presented this item.
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This is a request for City Council to adopt an ordinance authorizing the City Manager to approve
a three-year lease with Maxim Healthcare Services, Inc. for approximately 2,002 square feet of
office space in the Bank of America Plaza building.
Approving the lease supports Council's goal of one community with a vibrant city center by
retaining an existing commercial business tenant in the Bank of America Plaza building, located
at 5800 West Glenn Drive.
Council last approved a standard lease for the Bank of America Plaza building in April 2008.
This tenant's current lease pre-dates the approval of the standard lease, and the confidential
medical nature of their business requires the lease to have specific language that is not in the
standard master lease. Therefore, the city's master lease had to be modified to include this
language, which requires Council approval.
The lease was negotiated for a three-year term at current market rates, and with annual increases.
After the first year, the tenant, like other tenants of the Bank of America Plaza, will also pay a
pro-rata share of any increases in operating costs incurred by the city for the building. The
occupancy by this tenant will maintain the vacancy rate of the Bank of America Plaza building at
approximately 5.4%. Revenues from this lease will be deposited to the General Fund.
The recommendation is to waive reading beyond the title and adopt an ordinance authorizing the
City Manager to execute all documents necessary to effectuate a lease agreement with Maxim
Healthcare Services, Inc. for Suite 255 in the Bank of America Plaza building.
Ordinance No. 2724 New Series was read by number and title only, it being AN
ORDINANCE OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, AUTHORIZING AND DIRECTING THE MAYOR AND/OR
CITY MANAGER AND CITY CLERK TO EXECUTE AN OFFICE LEASE
AGREEMENT WITH MAXIM HEALTHCARE SERVICES, INC. FOR OFFICE SPACE
AT THE BANK OF AMERICA PLAZA.
It was moved by Goulet, and seconded by Clark, to approve Ordinance No. 2724
New Series. Motion carried on a roll call vote,with the following Councilmembers voting
"aye": Clark, Goulet, Lieberman, Knaack, Martinez, Frate, and Scruggs. Members voting
"nay": none.
PUBLIC HEARING RESOLUTIONS
6. COMMUNITY DEVELOPMENT BLOCK GRANT CONSOLIDATED PLAN AND
ANNUAL ACTION PLAN (RESOLUTION) (PUBLIC HEARING REQUIRED)
Gilbert Lopez, Community Revitalization Administrator, presented this item.
This is a request for the City Council to conduct a public hearing and to authorize submission of
the Community Development Block Grant Five-Year Consolidated Plan for Fiscal Year (FY)
2010-2014 and Annual Action Plan for FY 2010-2011 to the U.S. Department of Housing and
Urban Development (HUD).
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The Five-Year Consolidated and Annual Action Plans address the Council goal of one
community with strong neighborhoods. The plans are consistent with the City's General Plan,
and were developed with an extensive public participation process.
The Five-Year Consolidated Plan is a community needs driven strategic plan, which identifies
housing and community development priorities, goals, and strategies for Glendale residents. In
general terms, it outlines how funding is to be allocated throughout the life of the plan to meet
specific purposes. The Annual Action Plan is the yearly implementation tool that outlines all
proposed funding for Community Development Block Grant (CDBG), HOME Investment
Partnerships (HOME), and Emergency Shelter Grants (ESG) Program funds. These two
documents are required by the federal government in order to qualify and continue receiving
funding under these federal programs.
An extensive public review process for the adoption of the new Five-Year Consolidated Plan and
the use of FY 2010-2011 CDBG, HOME, and ESG Program funds was recently concluded by
the Community Development Advisory Committee (CDAC). This process included the review
of 50 applications, which included formal presentations by each of the applicants. As a result,
the CDAC is recommending $2,411,359 in CDBG grants; $691,717 in HOME grants; and
$98,278 in ESG grants. These grants will all be used to directly benefit Glendale residents.
The last Five-Year Consolidated Plan was adopted by the City Council in March 2005. The
federal government requires that it be updated every five years to ensure community needs are
addressed. Because the Annual Action Plan must complement the Five-Year Consolidated Plan,
the process to update both was initiated in September 2009.
Since 1977, Glendale has received approximately $61 million in CDBG funds. These funds have
helped the residents of Glendale with public service programs such as homeless prevention,
senior, youth, and services for the disabled that provide a compassionate hand to those in need.
The funds also resulted in many physical improvement projects—the "bricks and mortar" part of
the program and continue to provide funding for a variety of projects that help revitalize the
downtown infrastructure and remove blighted, underperforming structures.
The citizen participation process, conducted to prepare the Five-Year Consolidated Plan and for
the use of FY 2010-2011 federal CDBG funding, included seven separate public hearings
conducted by the CDAC between August 2009 and January 2010; a grant orientation session for
all CDBG applicants on September 16, 2009; three separate input sessions for residents and
neighborhoods, non-profits and city staff in January 2010; and individual briefings with the
Mayor and Council in February and March 2010.
All public meetings and hearings were properly posted and advertised in The Glendale Star.
Throughout the process, citizens and stakeholders also were able to provide input and
commentary through a variety of venues including e-mail, mail, phone, on our website, or in
person.
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The CDBG, HOME, and ESG programs are federally funded. The CDBG program does not
have a match requirement. The HOME program does require a 25% match from non-federal
funds and the ESG program requires a 100%match.
A $25,000 annual match is required and is provided by the General Fund. The additional match
needed will be provided by match carryover and other eligible in-kind resources such as donated
materials or volunteer hours. Outside agencies that apply for HOME funds are required to
provide a portion of their own matching funds.
The ESG funding will be allocated to outside agencies. Agencies that receive these funds are
required to provide 100% in matching funds.
Grants Capital Expense One-Time Cost Budgeted Unbudgeted Total
X X $3,201,354
Account Name, Fund,Account and Line Item Number:
Community Development Block Grant, Account No. 1320-31001-518200, $2,411,359
HOME Investment Partnerships Program, Account No. 1300-30001-518200, $691,717
Emergency Shelter Grants Program, Account No. 1830-31905-518200, $98,278
The recommendation is to conduct a public hearing; waive reading beyond the title and adopt a
resolution authorizing the approval of the Five-Year Consolidated Plan for FY 2010-2014 and
the Annual Action Plan for FY 2010-2011; and authorizing the City Manager to execute any and
all necessary documents approved for the entities listed in accordance with the Annual Action
Plan.
Mayor Scruggs opened the public hearing on Agenda Item No. 6.
As there were no comments, Mayor Scruggs closed the public hearing.
Resolution No. 4368 New Series was read by number and title only, it being A
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY, ARIZONA, APPROVING AND AUTHORIZING SUBMISSION OF THE
FIVE-YEAR CONSOLIDATED PLAN FOR FISCAL YEARS 2010-2014 AND THE
ANNUAL ACTION PLAN FOR FISCAL YEAR 2010-2011 TO THE U.S. DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT; AND FOR ACCEPTING A $2,411,359
COMMUNITY DEVELOPMENT BLOCK GRANT; A $691,717 HOME INVESTMENT
PARTNERSHIPS PROGRAM ALLOCATION, AND EMERGENCY SHELTER
GRANTS FUNDING IN THE AMOUNT OF$98,278.
Councilmember Frate thanked the Community Advisory Committee for all their hard work on
this item.
It was moved by Clark, and seconded by Frate, to pass, adopt and approve
Resolution No. 4368 New Series. The motion carried unanimously.
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7. PROPOSED INCREASE IN WATER AND SEWER RATES;ADOPTION OF WATER
AND SEWER RATE ADJUSTMENTS (RESOLUTION) (PUBLIC HEARING
REQUIRED)
Kenneth A. Reedy, Deputy City Manager, presented this item.
This is a request for City Council to table the public hearing for the irrigation rate adjustment to
the May 25, 2010 Council meeting to allow the written report supporting the increased irrigation
rate to be on file with the City Clerk; conduct a public hearing on the proposed increase in water
and sewer rates; and waive reading beyond the title and adopt a resolution increasing the water
and sewer rates effective with the July 2010 utility billing cycle.
This addresses Council's goal of one community with high-quality services for citizens by
continuing to provide safe drinking water and sewer services.
In order to provide high-quality water and sewer services, and remain in compliance with strict
Federal and State water quality regulations, there were a series of continuous improvements
made over the past seven years to the Utilities system. These include: improvements and
renovations to the water and wastewater treatment plants, replacement of water delivery and
sewer lines, construction of lift and odor control stations, and construction of the Oasis Water
Campus.
The Utilities Department has made every effort to reduce costs to both the Capital Improvement
Plan and operating & maintenance budgets due to the economic downturn. In addition, the
Utilities Department has also attempted to increase revenues by selling long-term water storage
credits and amending an agreement between the Sub-Regional Operating Group cities and the
Palo Verde Nuclear Generating Station. In spite of these efforts, the recommended rate
adjustments are still necessary to provide the financial resources to operate and maintain the
Utilities system, as well as remain in compliance with increasingly stringent Federal and State
water quality regulations.
In January 2010, Red Oak Consulting updated the assessment of the existing rates, fees, revenue
generation, and full cost recovery for the city's water and sewer operations. This update
addressed the financial requirements of the Utilities Enterprise Fund.
On March 23, 2010, Council adopted a resolution declaring the city's intent to increase the
water, sewer, and irrigation rates effective July 2010 and setting the public hearing for April 27,
2010. A Notice of Public Hearing was published in The Glendale Star on April 1, 2010 for the
April 27, 2010 Council meeting.
It was recently determined that supporting information for the irrigation rate increase was not on
file with the City Clerk's Office for public use and inspection, as required by state law. This
information is now available for public inspection at the City Clerk's Office and also on the
Utilities Department web page. The public hearing for the irrigation rate increase will be tabled
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to May 25, 2010. Notices for this public hearing postponement were mailed to 235 irrigation
water customers on April 19, 2010.
The results of the Red Oak Consulting updated analysis were presented at the March 2, 2010
Council Workshop. At the workshop, Council directed staff to begin the process to increase
water, sewer, and irrigation rates as presented, effective with the July 2010 billing cycle.
The proposed water and sewer rate adjustments will help to ensure that the city has the financial
resources to continue to provide high-quality water and sewer services to Glendale citizens and
businesses, and remain in compliance with Federal and State regulations.
The recommendation is to table the irrigation rate adjustment to the May 25, 2010 Council
meeting; conduct a public hearing on the proposed increase to water and sewer rates; and waive
reading beyond the title and adopt a resolution establishing the water and sewer rates effective
with the July 2010 utility billing cycle.
It was moved by Martinez, and seconded by Lieberman, to table the public hearing
on the irrigation water rates. The motion carried unanimously.
Mayor Scruggs opened the public hearing on Agenda Item No. 7, water and sewer
rates.
Mr. Bill Demski, a Sahuaro resident, explained he had recently read two interesting
articles that happened weeks apart. One was about the city's water and sewer increase of 21%
and the increase in property taxes. The other article discussed the city budgets of Phoenix and
Glendale as well as other cities having 75% of their budget going toward wages and benefits
while the public was experiencing rate increases. He believes this was extremely unfair to the
public and has serious concerns on how the city is being run.
Mr. Ken Jones, an Ocotillo resident, stated this water and sewer increase will hurt many
people. He noted Glendale has the second highest water rates in the valley. He questioned the
city increasing water rates because of lower water usage. He hopes the Council avoids
approving this increase.
Mayor Scruggs closed the public hearing.
Resolution No. 4369 New Series was read by number and title only, it being A
RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA
COUNTY,ARIZONA, ESTABLISHING WATER AND SEWER RATES PURSUANT TO
GLENDALE CITY CODE; AND SETTING FORTH EFFECTIVE DATES.
It was moved by Martinez, and seconded by Knaack, to pass, adopt and approve
Resolution No. 4369 New Series. The motion carried unanimously.
Mayor Scruggs explained her concerns regarding the water and sewer rate increase. She
stated that no one likes this increase, including herself, City Councilmembers and staff.
However, countless hours have been spent working with staff to understand the process and what
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needs to be done. She discussed the many costly environmental laws and standards the city has
to comply with as well as the cost to treat the water. She noted water doesn't just appear in a
home but has to be bought from water providers while those rates keep increasing. Additionally,
many people are needed along the way, such as chemists and engineers which also requires
funding. She indicated the city requires there is enough revenue at all times to pay for water
purchase, treatment, delivery and disposal. The fee process is run on rates that are paid by the
home owners and businesses and are not combined with any other budgets or services. She
explained foreclosures have played a in the increase since water consumption dropped along
with people not paying water bills. Nevertheless, the city still has the same expense to buy the
water, treat and distributed it. She added that 40% of all revenue comes from commercial
accounts. She stated demand in water sales has gone down 8% each year for the last two years
and revenue has gone down $3.5 million dollars. She noted the federal government also
mandates the city have a certain number of employees in the utility department; however, the
utility department has cut their budget by 11%. She explained that the primary role of city
government was to provide excellent services to the public.
Councilmember Lieberman commented that there has been a 19% decrease in property tax rates
since 1992. He noted the enterprise fund for water and sewer was not funded by the general
fund, but from revenue obtained from the product sold. He explained that to balance the books
and manage a self paying part of the city government, they have to consider rate increases.
REQUEST FOR FUTURE WORKSHOP AND EXECUTIVE SESSION
It was moved by Martinez, and seconded by Frate, to hold a City Council Workshop
at 1:30 p.m. in Room B-3 of the City Council Chambers on Tuesday, May 4, 2010, to be
followed by an Executive Session pursuant to A.R.S. 38-431.03. The motion carried
unanimously.
CITIZEN COMMENTS
Mr. Ken Jones, an Ocotillo resident, suggested they use the city's car allowance money to pay
for this year's 4th of July Fireworks Celebration instead of enjoying them in neighboring cities as
they were told to do last year.
COUNCIL COMMENTS AND SUGGESTIONS
Councilmember Clark expressed her support for the Coyotes playing tonight.
Councilmember Goulet thanked the Coyotes organization for their tremendous accomplishments
and dedication to professionalism. They have earned a place in the community and hopes they
remain here for a very long time.
Councilmember Lieberman thanked everyone who attended the Jazz and Blues Festival. He
stated they had raised more money at this event than any other for charity.
Councilmember Frate reminded everyone to always watch children around water. He thanked
the students for attending tonight's meeting.
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ADJOURNMENT
There being no further business, the meeting was adjourned at 7:45 p.m.
Pamela Hanna- City Clerk
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