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HomeMy WebLinkAboutMinutes - Minutes - Water Services Advisory Commission - Meeting Date: 5/6/2015 rli*11. Water Services Advisory GLENp Commission Glendale Council Chambers Building 5850 W. Glendale Avenue May 6,2015 6:00 P.M. FINAL MINUTES I. CALL TO ORDER—6:00 p.m. II. ROLL CALL: Present: Commissioners Robert Gehl, Roger Schwierjohn, Robin Berryhill, Chair Ron Short,and Vice-chair Jonathan Liebman Absent: Commissioners Ruth Faulls and John Sipple Staff: Craig Johnson, John Henny, Dr. Doug Kupel, Javier Setovich, Amanda McKeever, Dan Hatch, Mark Fortkamp, Anthony Weathersby, Thomas Relucio, and Sally Melling, Recording Secretary III. APPROVAL OF MINUTES OF PREVIOUS MEETINGS Approval of the Final Minutes, March 4, 2015 meeting - Motion for approval made by Comm. Schwierjohn, seconded by Vice-chair Liebman. APPROVED 5-0 Approval of the Final Minutes,April 1,2015 meeting-Motion for approval made by Comm. Gehl, seconded by Comm. Schwierjohn. APPROVED 5-0 IV. DIRECTOR'S REPORT—Craig Johnson,P.E., Water Services Director Mr. Johnson presented information on the Salt River Irrigation (SRI) contract. He explained SRI requested a fee rate increase and negotiations are ongoing. Mr. Johnson said he will report back to Commission and the contract may go out for bid again in 2016. Mr. Johnson said he felt there was a need to keep the Commission and public informed. He explained there will be no interruption in service and delivery for the current irrigation season. Comm. Berryhill asked if the request is for this current year and if rates would be going up for the current year. Mr. Johnson explained SRI asked for an increase for the current season, but that he could not give details of the negotiations as they were to start the next day,May 7. Comm. Berryhill stated she remembered a contract request with SRI was presented to Council in August 2014 and questioned why SRI did not request a rate increase at that time. It was explained City of Glendale Water Services Department•7070 West Northern Avenue•Glendale,AZ 85303•(623)930-4100 May 6,2015 Water Services Advisory Commission Final Minutes Page 2 that the August 2014 Council item was Amendment #1 to the contract with SRI, and this rate increase request is for Amendment#2 to the contract. Mr. Johnson reported on an upcoming lead and copper study that the Water Quality Lab needs to undertake every three years as a requirement of the Environmental Protection Agency. The study requires fifty residences provide a first-draw water sample. When Chairman Short asked how many samples per house are taken, Mr. Johnson explained it is one per house and is the first water drawn of the day from one faucet. Dr. Kupel further clarified that Water Services personnel will not enter anyone's house but rather will drop off a sample bottle only. Each designated homeowner is to leave the filled bottle on their doorstep for pick up. Action: No action required,information only V. STRATEGIC PLANNING UPDATE Mr. Johnson reviewed the Strategic Planning final report which was given to each commissioner. He explained staff is looking at the priority areas the Commission indicated and reviewing resourcing schedules to compile an annual schedule for presentation to the Commission. The results could be ready to present to the Commission in June, if not, then after the Commission returns from the summer vacation. Action: No action required,information only VI. URBAN IRRIGATION Dr. Kupel presented nine discussion points to the Commission, based on the years-long process of study on the urban irrigation subject. Dr. Kupel provided information and examples on the following discussion points from the memo provided in advance of the meeting: 1. Should irrigation rates no longer be tied to water rates in general? 2. Should there be a rate goal for irrigation that would set a specific cost-recovery percentage? 3. What base period should be used to arrive at a cost recovery amount? 4. What is the impact of increasing the rate? 5. How will variables in annual revenues and expenses be accounted for? 6. How will major repairs to the system be paid for? 7. How will a"sinking fund"be accumulated? 8. What is Water Services doing to increase the number of customers? 9. Should there be a base charge or administration fee for urban irrigation customers? Following his presentation, Dr. Kupel answered questions of the Commissioners. Dr. Kupel responded to Comm. Schwierjohn's inquiry regarding system repair history for the last ten year period, and provided further information in response to Comm. Berryhill's questions regarding City-wide cost recovery rates. He also offered further information in response to Vice-chair Liebman's questions regarding discussion point numbers 4 and 6. Comm. Berryhill voiced concerns on Ordinance 27 and Resolution 588 being honored, and expenses being correctly attributed to the irrigation budget so that urban irrigation users are not paying for something they are not receiving. Dr.Kupel provided further information in response. May 6,2015 Water Services Advisory Commission Final Minutes Page 3 Comm. Gehl asked for confirmation that Council directed the Commission to address the disparity between expenses and revenues. Mr.Johnson confirmed it was correct. Chairman Short opened the citizen comment portion after explaining to the audience that the Commission cannot immediately address comments directed to them. Seven citizens spoke on this item. John Geurs, N. 61 Drive: Mr. Geurs complimented the presentation, the Commission, and Salt River Irrigation for doing an excellent job maintaining what they can with the money they have. He understands the efforts of trying not to make the City go broke. He said SRI is doing minor things and increasing the efficiency of system by about 40%. He feels there is a need to continue to allow SRI to make repairs. At this time, Mr. Johnson provided further clarification on how urban irrigation was brought forward as a discussion item. He explained Mayor Scruggs identified a deficit area within the budget. The Citizens Task Force for Water and Sewer was formed and discussed the item; urban irrigation has been a topic of interest for this current seated commission since its formation. Jessica Koory, W. Morten: Ms. Koory thanked the Commission. She said urban irrigation rates should not be tied to potable or drinking rates. She said the irrigation water is not treated. She foresees three potable water rates in the future, SRP, CAP, and private water companies for Loop 303 area, and thinks irrigation assessment fees will add a fourth. Ms. Koory recalled that Mr. Dan Hatch stated that water rates will not be raised for two years at the February 4 WSAC meeting. She stated that promised information from SRP about cut over lands needs to be obtained. Ms. Koory stated that Doug Kupel explained at the January 28 district meeting that for lands not receiving irrigation, SRP has cut over those lands to the City. She stated that the City pays the assessment to SRP and SRP gives the water to the City. She further explained that for the users that have irrigation, those lands are not going into the City's potable account. She said by raising rates, many people will not be able to continue to receive irrigation and she fears that soon historic downtown Glendale will look like Murphy Park where trees are dying. She also states that the argument made for not paying for services not received have no place in urban irrigation in a City with so many diverse attractions and dwellings. She said it is not acceptable to have cost recovery rates for previous years since the City maintained the system before SRI. Ms. Koory feels that many extra items have been charged to the irrigation account. She feels the illegal use of enterprise funds by prior administrations would have averted this need. She stated that the suggestion of a base charge is opening the door for adding more administrators. She also feels the capital improvement fund fee is unnecessary as Mr. Craig Johnson stated at the January 28 meeting that $15,000 is set aside annually for complex repairs. John LeGendre, N. 59 Drive: Mr. LeGendre said the City always talks about something that does not pay for itself. He feels that nothing in the City or the government pays for itself, and all of the money is pooled together. He has lived here all his life and has seen no major repairs. He feels that money isn't going into the fund, but rather going into the general fund. He gave the example that the sewer does not pay for itself but that we all live in the City to offset such needed expenses. He said the green oasis of downtown Glendale can be seen from the air, and that it is'one of the amenities of life and the cost should not increase. Bud Zomok,N. 58 Drive: Mr. Zomok thanked the City for repairs done. Mr. Zomok said that Dr. Kupel has said that 40 new customers are needed. Mr. Zomok said that just a few mailers have May 6,2015 Water Services Advisory Commission Final Minutes Page 4 gone out lately, but many customers have heard for years that they were not allowed onto the system. Mr.Zomok feels it will take a little bit of time to bring them on but customer numbers will climb in time. He sees fees on his current water bill to cover large repairs and asked if those fees only cover non-irrigation customers. Mr.Zomok gave kudos to Mr.Johnson for his quick response to help him get on the irrigation system. Rosilyn Miller, W. Lamar Road: Ms. Miller stated that she does not live in the historic townsite or downtown area. She said she is an SRP direct irrigation customer. She asked if there are there other areas in City that get urban irrigation, such as large churches and public housing and wondered if they are charged for irrigation. She stated a friend lives on Morten Avenue and can't locate the valves to get irrigation. She feels it would be helpful to have maps to show her where irrigation lines are. She said she would hate to see urban irrigation stopped but realizes rates need to be set fairly. (Mr.Johnson gave Ms.Miller his card for further contact.) Mindy Tryon, W. Christy Drive: Ms. Tryon stated she is going to be a new customer. She said she has lived in Glendale her whole life and is wondering if she can afford to receive irrigation with all the proposed amounts being added. She questioned why the rate recovery is going to be increased to 50% when it has never been that high before. She said the money needs to be going directly to water for services provided. She pointed out the City has operated at a loss for years,and asked the Commission to please think about not raising rates. Bruce Jackson, W. Harmont Drive: Mr. Jackson requested clarification on discussion point number 9 to explain if the administration expenses are going to the contractor to give them a supplemented income for the five months per year that irrigation is not delivered. Comm. Gehl asked for clarification if the cash flow issue is at the beginning of season. Dr. Kupel provided information. Dr. Kupel provided clarifying information when Comm. Berryhill asked questions about a possible $25 administrative fee. Comm. Berryhill voiced a concern that the public was not aware of all information being presented. Mr. Johnson explained to the audience that everything that had been discussed was posted on the Water Services web page in advance of the meeting. When asked by Vice-chair Liebman about the total department budget, Mr. Johnson responded it is $49 million. Vice-chair Liebman asked everyone to keep the big picture of things in mind. Motion made by Comm. Gehl that a recommendation be made to Council that they preserve, protect,and maintain urban irrigation in the future. Seconded by Comm.Berryhill. PASSED 5-0 Motion made by Comm. Gehl to recommend to Council that when feasible, that urban irrigation could be extended to customers within the service area, subject to department analysis, and lots must be capable of safely taking delivery. Seconded by Comm. Schwierjohn. PASSED 5-0 Motion made by Comm. Gehl that a recommendation be made to Council that new service customers are responsible for costs incurred for establishing new service and ensuring that property is up to standards so it can safely receive urban irrigation water. Seconded by Comm. Schwierjohn. PASSED 5-0 May 6,2015 Water Services Advisory Commission Final Minutes Page 5 Motion made by Comm. Gehl that a recommendation be made to Council urban irrigation be de- indexed to potable water rates and tie them to the direct cost of urban irrigation service. Seconded by Comm. Schwierjohn. PASSED 5-0 Motion made by Comm. Gehl that a recommendation be made to Council that a target of a 50% cost recovery be set over a 5-year period using the 2010-14 base period analysis. There was no second. Motion made by Comm. Gehl: set a target of a 50% cost recovery rate rolling forward over the 5- year period of 2010-14, with an ultimate target of a 50% cost recovery to be reached at the end of the fifth year. Seconded by Comm. Schwierjohn. PASSED 3-2 (Liebman and Berryhill dissenting) Comm. Berryhill made a motion to recommend to Council that prior to implementation of a cost recovery program and capital improvement program,the City bring the system up to standards and certify it for ten-years as a viable system. Seconded by Comm. Schwierjohn. There was no vote on this motion. Comm. Berryhill restated her motion: make a recommendation to Council that the cost recovery program be delayed until supporting documentation is submitted by the City to support and define expenses assigned to urban irrigation. Comm. Schwierjohn accepted the restatement. The motion PASSED 5-0. Comm. Berryhill moved as follows: make a recommendation to Council that prior to implementation of a capital improvement fee program, that the City maintain and repair the system up to standards, with certification of the system by an engineering firm, for a period of ten years. Comm. Schwierjohn seconded the motion. PASSED 4-1 (Gehl dissenting.) VII. CALL TO THE AUDIENCE No audience members addressed the Commission. VIII.FUTURE AGENDA ITEMS June meeting: Pyramid Peak Water Treatment Plant Intergovernmental Agreement with City of Peoria and Colorado River Shortage/Drought Management Plan Ms. McKeever, Water Services Administrator, informed the Commission a schedule of topics would be presented for their review by staff. IX. NEXT MEETING: June 3,2015, 6 p.m. X. ADJOURNMENT — Motion to adjourn was made by Comm. Schwierjohn, seconded by Vice- chair Liebman. MOTION APPROVED 5-0 by voice vote. The meeting adjourned at 8:07 p.m. Respectfully submitted, /r Sally ling,Recording cretary