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Home My WebLink AboutMinutes - Minutes - Water Services Advisory Commission - Meeting Date: 4/2/2014 rt% Water Services Advisory .GLENDf,E Commission Oasis Water Campus 7070 W.Northern Avenue April 2,2014 6:00 P.M. FINAL MINUTES CALL TO ORDER—6:02 p.m. II. ROLL CALL: Present- Commissioners Robert Gehl, Paul Romanek, Ruth Faulls, Roger Schwierjohn,John Sipple,Vice-chair Jonathan Liebman, and Chair Ron Short Staff: Craig Johnson, Javier Setovich, John Henny, Mark Fortkamp, Doug Kupel, Anthony Weathersby, Tom Gill,Kerri Logan, Thomas Relucio, and Sally Melling III. APPROVAL OF MINUTES OF MARCH 5, 2014 — Chairman Short requested a correction to item VI, Urban Irrigation Impacts and Alternative, alternative #4 proposed. The correction was noted. Motion made and seconded to approve the corrected minutes. Voice approval was unanimous. Action: Approved by unanimous vote IV. EXECUTIVE DIRECTOR'S REPORT — Craig Johnson, P.E., Executive Director, provided an update on Urban Irrigation. • Several meetings held with public/customers, questions and concerns presented • Follow-up staff findings presented to users • Direction to suspend this item per City Manager's office o Current city priorities include budget presentations and finalizations o Allows staff time to gather all information o Allows more complete public notification and involvement • Commission concerned the issue would be passed over, seeking definite timeframe • Commission feels this issue directly impacts city budget • Estimated meeting date to be presented at next meeting Action: No action taken,information only V. CALL TO THE AUDIENCE — Chair Ron Short reviewed the opportunity for audience members of the public to address the Water Services Advisory Commission. One person spoke on a non-agenda item. Robin Berryhill-Thanked staff for meeting held on April 1, 2014. Need to set a date and find a resolution. Has question on Budget item 518200. Feels this item needs to be broken out into subsection listing account users. She stated she has computed costs based City of Glendale Water Services Department•7070 West Northern Avenue•Glendale,AZ 85303•(623)930-4100 April 2, 2014 Water Services Advisory Commission Final Minutes Page 2 on figures if she was an SRP customer, using 2012 figures. Her figures showed $41,000 in costs with $55,000 in revenues. She wants to see irrigation line costs broken out by percentage of use by city users (such as parks, churches, schools,) and residential customers. Urges a long term solution be found. Also wants upgrading the system and bringing more users in addressed. VI. BUDGET INFORMATION - PRESENTATION Information presented by Anthony Weathersby,Acting Water Services Administrator • City using Zero Based Budget process • FY 2014 budgeted amount-$49M • Current revenues$56M; current expenses $29.5M • Debt ratio currently at 1.45; minimum allowed is 1.2 • FY15 Budget increase over FY14 budget- $117K • No rate increases projected for FY15 • Capital Improvement Program is PayGo (pay cash as we go) with planned FY15 project spending at $19M, $25M planned for FY16, $26M for FY17, $14M for FY18, and $1.7M for FY19 with stipulation that each year is different and what is planned today may not hold for future years • Projected CIP FY15 projects o Sewer line replacement o Manhole rehabilitation o Arrowhead Ranch Water Reclamation Facility improvements Commission questions/concerns- Is deficiency of$2.6M in FY14 to be made up for in FY15 in contingency funds? Staff clarified there is no deficiency Chairman Short asked to review info and get back to staff Any annual savings are carried forward to new fiscal year in Enterprise Fund Did$2.8 million in salary savings due to staff vacancies affect customer service? No, staff shortages handled by divisions helping each other out, overtime, and cross- training What does $4.4M savings in O&M cover? Most reductions were in chemicals costs,use is less than forecasted Use forecasts must allow for response to water quality coming down the canal Committees in place to evaluate Operating costs and maximize potential savings City joined with two other cities in a re-gen carbon contract, has reduced costs by 60%or$1M this year; contract has a 10-year term How far out are rate increases predicted? Will there be one in the next five years? Forecasts are five year plans: revenues, expenses, capital improvements Department Plan and Zero-based budget are annual plans Revenue is currently projected at a conservative level; but pay as you go project building will eventually use the cash currently in the balance Comm. Romanek's concern is the looming drought; fears citizens will face huge increases due to water shortages April 2,2014 Water Services Advisory Commission Final Minutes Page 3 FY16 will be good year to review rate needs Small incremental increases are better for citizens How much will drought/anticipated water reduction impact the financial budgets? $564K is the actual CAP cost increase; driven by cost of power at the Navajo Generating Station and cost of operating the canal CAP water costs have increased 25% in past 3 years; current charge will increase from$146/ac ft. (FY14)to $157/ac. ft. (FY15) Drought will impact cost, if customer base is reduced due to agricultural use curtailed or eliminated,those remaining will have to pay the cost April 10: CAP will hold meeting to discuss City has assured water supply of 100 years and water credits but at higher cost Budget FY15 is still being discussed All budget information is on the internet,back to at least FY10 Current cash on hand $56M, fluctuates based on needs; averages $50M-$60M last three years Water Services may need to research bond options beginning FY16 Action: No action required,information only VII. CCTV AD WASTEWATER INFORMATION — PRESENTATION Additional information was provided by Mark Fortkamp, Superintendent Age of Wastewater Collection system • Information on age and composition of collection system obtained through city "as- builts" • 707.7 miles of sewer pipe, ranging in age from 42+ years (installed in 1917) to present • CIP program looking to replace/rehab many aspects of the system • What is life span of vitrified clay pipe? Could last up to 50 years, depending on variables • What is a clean-out? Small opening that connects to main sewer line which then connects to a manhole, allows for maintenance SSOs(Sanitary Sewer Overflows) • Average cost of one SSO is $1,905.29, based on a four-hour timeframe; second day activity analyzes cause of stoppage • Are SSOs accounted for in a line item? Yes, under line supply expenses. Information captured for CMOM program. CCTV Inspection • Cities of Mesa, Scottsdale, Avondale, Peoria, Phoenix, Surprise, and Tempe contacted for information • CCTV and pipe cleaning services provided range from no outside contractors used,to only outside contractor providing the services, and a hybrid combination of the two to varying degrees • Glendale currently does not use a contractor; staff performs all work April 2, 2014 Water Services Advisory Commission Final Minutes Page 4 • ProPipe Professional Pipe Service can perform CCTV and hydro-cleaning service for 200,000 feet/year at 690/foot for $138,000 annually. The department can piggyback under a cooperative agreement contract held by another city to get this reduced price. Commission request: Obtain age of other cities' pipe systems Commission question: How is Surprise able to televise and clean almost twice as many feet as Glendale? Surprise has a newer CCTV truck and dedicated staff to perform only that function. Glendale's truck is down more often for repairs due to age and staff is used for other duties throughout city. Three scenarios to increase number of miles of wastewater collection pipe inspected each year(Comm. Romanek): Purchasing our own truck Contracting with a vendor Better leveraging of current equipment Commission request: Return of investment figures for each scenario Action: No action required,information only VIII. CALL FOR FUTURE AGENDA ITEMS Commissioner Romanek informed Commission and staff members of follow-up done on an option offered by his homeowner's insurance. Repair coverage is provided from his sink to the city's point of responsibility for$15 annually. • Service Line Warranty additional info requested • CAP Rate meeting of April 10 information summary • Irrigation, future meeting date • Chapter 33,to be sole item on an agenda Action: Information requested IX. NEXT MEETING: May 7,2014, 6 p.m. X. ADJOURNMENT — Motion to adjourn - Comm. Faulls, seconded by Comm. Schwierjohn. Approved by voice vote. The meeting adjourned at 7:21 p.m. Respectfully submitted, // Sally ''ling,Recordin cretary