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HomeMy WebLinkAboutMinutes - Minutes - Water Services Advisory Commission - Meeting Date: 12/7/2016t+ry Water Services Advisory Commission O,esisWatcrCempus 7070 W. Northern Avenue December 7, 2016, 6:fi) P.DL I. il. FINAL MINUTES CALL TO ORDER - 6:00 p.m. ROLL CALL: Present Chairman Jonathan Liebman, Vice-chairman Ron Short Commissioners Robert Gehl, Robin Berryhill, Amber For4 and Ruth Faulls Staff: Water Services-Craig Johnsoq Ron Serio, Doug Kupel, Dan Hatch, Anthony Weathersby, Joanne Toms, and Sally Melling Recording Secretary; Public Works-Jack Friedline, Michelle Woytenkq Ernie Ruia and Bill Sterling APPROVAL OF MINUTDS OF PREVIOUS MEETINGS Approval of the Final Minutes, November 2, 2016 meeting - Chairman Liebman requested clarification on page 5, item VU, paragraph one addressing the time frame of the memo sent to the Government Services Committee. With the change, a MOTION for approval was made by Comm. Gehl, seconded by Comm. Berryhill. APPROVED S0 DIRECTOR'S REFORT - Craig Johnson, P.8., Water Services Director Mr. Craig Johnson informed the Commission that the item concerning the expanded duties of the WSAC has been placed on the agenda for the Government Services Committee meeting of January 3, 2017, and he and Mr. Friedline will present the item. Mr. Johnson stated he would email the Commission the meeting information. ACTION: NO ACTION REQIIIRED, INtr'ORMATION ONLY SOLID WASTE FINANCIAL PLAN Mr. Jack Friedline, Director, Public Works, and Ms. Michelle Woytenkq huty Director, Public Works, presented information regardingthe Solid Waste Enterprise fund, expenses and revenues, and Solid Waste rates to the Commission. Mr. Friedline began by introducing Public Works staffwho would assist with questions. He provided a general budget overview as it deals with solid waste management area but would wait until Council approves the expanded WSAC scope before providing too many details and formalities with reference to future rates and models. Mr. Friedline explained he would model much ofthe initial information on similar budget information Dan Hatch, Water Services Adminishator, Budget and Finance had already provided the Commission. He refreshed the commission on the account numbers: A6000 is personnel related Water Seruices Department . zozo wesrRl[fl8ffire . Glendale, AZ 8!i303 . (623) 9ixl4100 III. IV. v. December 7,2016 Water Sewices Advisory Commission Final Minutes Page2 costs, 47000 is departnent contolled operating expenses, and 47500 for insunances and shared costs. He then presented the Residential Solid Waste Budget which had a decrease in capital costs from $2.1 million last fiscal year to $800,000 budgeted to be spent this fiscal year. Capial costs will mainly be composed of equipment and vehicle purchases. He explained that there are few facility enhancements and the bulk of the costs are in the vehicles. He ernphasized that the Solid Waste collection process is heavily dependent on the sideJoaders that pick-up the garbage. Currently, Public Works has 25 side loaders for 19 routes, wi0r the extra vehicles to allow for maintenance and repairs without reductions in service. He then presentod information on the breakdown by service budget also by the A6000, A7000, A7500 categories and the figures concerning each. Services include: curb services of weekly garbage and recyclables collections, bulk trash services, and street sweeping services. He outlined the capital program with vehicle assets and costs. The capial program encompasses 25 sideload tnrcks (cost of $275,000 each), 12 rearload trucks ($227,W each) with 6 ractors ($90,000 each), 2 conainer delivery trucks ($70,000 each), 2 mechanic trucks ($65,000 each), and 4 passenger vehicles ($30,000-32,000 each). Mr. Friedline explained the stneet sweepers are also part of the capial program with 3 stneet sweepers. both sweepers and vacuum tnrcks when asked by Vice- chairman Short. Mr. Friedline added that because the vacuum portions of the sheet sweepers reduce particulates and pollution, gnnts are available for this purchase. An interesting cost associated wi0r the str,eet sweepers is that the side brooms roquir€ replacing every 2 weeks due to the rough surfaces they contact. Revenue is generated at a rate of $l5.30r per residence per month foran annual total of$10,670,000. Some residences will pay a higher monthly fee since they may have more than one refuse container or twice weekly pick up service. Mr. Friedline called attention to slide #3 which listed a budget of total of $ I I .3 million. He explained that the shortfall is made up from the ending fund balance canied forward every year. He stated efforts on non-stop to be more effrcient and hold costs down. A rate model is being developed that will be shared with the Commission if the City Council approves expanding the Commission's rcle. It will be focused on a five to seven year pictue, possibly pushed out to l0 years, and mentioning any dramatic, peak costs that can be saved for. He explained the goal is to have an ending fund balance that's reasonable with a rate that is equitable to the service provided. Comm. Berryhill asked when the last rate increase was. Mr. Friedline stated it was in 2008. He explained that they are in reasonably good shape but that hinges on having the ability to replace the fleet as it ages. He summarized that the infonnation which will be presented will be to help the commission understand the Sanitation rates and service, then the Landfill and Recycling and finally the projected growth with the Landfill north cell to be opened rul.2024. Chairman Liebman asked if (on slide #3), the capital costs listed were cash outlays, there is no debt service. Mr. Friedline replied they were. Chairman Liebman then asked aborn the $800,000 sp€nt. Mr. Friedline clarified it was for three side loaders and a couple of pick-up trucks. Then Chairman Liebman asked if services were put at risk with the cost reduction from last year. Mr. Friedline explained that the number of routes were reduced, fleet efficiency was improved, and no service levels were reduced. The chairman then asked why the stneet sweepers came into the solid waste area and not tansportation. Mr. Friedline explained that the nationwide standard is split 50/50 on it landing in either department. Chairman Liebman asked for the average age of the fleet vehicles. Mr. Friedline then stated that currently, several of the side-load trucks are definitely past the industry recommended age so any average now will be skewed. Next year will complete a S-year period of pragmatic approach to replacing fleet vehicles, and at that point the average fleet age will be 7 years which provides a level load both in equipment wear and financial impacts. December 7,2016 Water Services Advisory Commission Final Minutes Page 3 Chairman Liebman asked what the amount of the last rate increase was and why it has taken so long for any increase request. Mr. Friedline replied it was over $3 in 2008 to supply a catch-up amount. He went on to explain that when the nationwide recession hit, the philosophy was to hold the line and realize that it was not how much can the public give to help cover the gap, it was that citizens had nothing to give. Then about 3 years ago, the .7%o sles tax was implemented and conflicted with a water, sewer, and sanitation rate increase r€quest. Mr. Friedline said there is no financial model that will support not getting a rate increase before now. Comm. Gehl commended the excellentjob done in downtown Glendale afterbulk rate pick-up. He stated it is always clean and tidy. Comm. Berryhill asked if there is a sheet sweeping schedule available to which Mr. Friedline directed her attention to one of the handouts provided. Vice-chairman Short asked if internal charges for Landfill hauls are the same as for private sector. Mr. Friedline explained it is an intemd rate of $20lton which is the lowest rate. The vice+hair asked ifthe Sanitation Deparment does a betterjob than private competition. IvIr. Friedline explained they only have private vendors provide service in select areas ofthe city such as Northem Parkway street sweeping. He went on to explain that employees have a connection with the residents rather than just a low-bid contnact mentality. Comm. Faulls asked if the proposed routing analyst will be a firll time employee or work on consultant status. Mr. Friedline explained it will be a full time position since there is a large capacity for routing to minimize inefficiencies in driving rout€s and servicing ar€as. ACTION: NO ACTION REQIIRED,INFORMATION ONLY 6:55 p.m.-AT THIS TIME, A BRIEF RECESS WAS CALLED FOR TO VIEW TIIE SIDE- LOADER TOLJR PROVIDED IN THE PARKING LOT MOTION to rcccss by Comm. Faulls, seconded by Comm. Gehl, APPROVED by maiority voice vote. Commission reconvened at 7:15 p.m. VI. CALL TO THE AT'DIENCE No audience members spoke. VII.@ Update on Governmental Services Committee meeting Glendale's Water Supply and update on Arizona's Dnought Plan Mr. Johnson and Mr. Friedline will present a Council item on the WSAC expanded scope at the January 24,2017 evening meeting Possible other topics: Public Works Financial information Developing a publicity prograrn for public notifications similarto Urban lrrigation notifications Add staffattendance at councilmember district meetings to share information Change mission statement to provide equal time for Water Services and Public Works Possible Commission name change Have twice monthly meetings for initial l-2 months December 7,2016 Water Services Advisory Commission Final Minutes Page 4 VnI. COMMTS$OTBR COunrrnnts Comm. Berryhill requested information on what is included when the 50% cost r€covery for urban inigation charges is calculated. Follow-up information will be provided to all commission members. Comm. Faulls asked when the remaining commission position will be filled. It was explained that the new Council will make that selection. IX. NEXT MEETING: January 4,2017,6 p.m. X. ADJOITRNMENT - Motion to adjourn was made by Vice-chairman Short scconded by Comm. Gehl. MOTION APPROVED 60. The meeting adjourned at 7:28 p.m.