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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 5/10/2017�1. Citizens Utility Advisory � Commission City of Glendale Citizens Utility Advisory Commission Oasis Water Campus 7070 W. Northern Avenue May 10, 2017 6:00 P.M. FINAL MINUTES I. CALL TO ORDER Vice Chair Ron Short called the meeting to order at 6:00 p.m. II. ROLL CALL Present: Vice Chair Ron Short, Commissioners: Amber Ford, Robert Gehl, Ruth Faulls, and Robin Berryhill. Absent: Chair Jonathan Liebman III. APPROVAL OF MINUTES OF THE PREVIOUS MEETING Review and approval of the May 3, 2017 meeting minutes will be sought at the next scheduled Citizens Utility Advisory Commission meeting on August 2, 2017. For copies of the draft minutes, please visit the Citizens Utility Advisory webpage at http: //www. glendaleaz. com/boardsandcommissions/Citizens UtilityAdvisoty. c/n or contact staff at 623-930-4177 to request a copy. IV. DIRECTOR'S REPORT Craig Johnson, P.E., Water Services Director, gave a brief summary of the agenda for the evening. Mr. Johnson expressed appreciation to the Commission for its review of the rate evaluations. V. WATER SERVICES RATE STUDY FINDINGS AND PROPOSED RECOMMENDATIONS A follow-up presentation regarding the Water Services Rate Study findings and the proposed recommendations was provided by: Ms. Vicki Rios, Budget and Finance Director; Ms. Kerri Logan, Deputy Water Services Director; and Mr. Craig Johnson, P.E., Water Services Director. Mr. Rob Wadsworth, Raftelis Financial consultants, Inc. was also in attendance. Ms. Logan presented the following information: • Revenue Rate Increase History — FY2006-07 through FY2015-16 o There were no increases during FY2011-12 through FY2015-16. Ms. Logan commented that this evening, the Commission will be asked if it supports either of the financial plan options presented and if the Commission supports transitioning either options over time. Ms. Rios presented the following information: 9 Financial Plan Options May 10, 2017 Citizens Utility Advisory Commission Final Minutes Page 2 o % Revenue Increase for Water and Sewer o Water Cost of Service Option 1— Allocation of Increases o Water Cost of Service Option 2 — Allocation of Increases o Sewer Cost of Service Options 1 and 2 - Allocation of Increases Commissioner Berryhill inquired about the sprinkler category and the rates for reclamation water. Mr. Johnson explained that the Arrowhead HOA's use effluent water. Mr. Johnson stated that the City has a contract with Arrowhead Amenities, which the effluent water passes through for the Arrowhead HOAs. Arrowhead Amenities then charges the individual Arrowhead HOA's for its effluent water usage. Mr. Johnson noted that the effluent water is a separate service from the sprinkler category, which includes City parks and other HOA's outside of the Arrowheads. Ms. Rios clarified that the sprinkler category is potable water, unlike effluent water. Commissioner Berryhill inquired if the bond rating would increase more if Option 2 were chosen. Ms. Rios replied that it is hard to predict exactly what bond rating agencies will do, but Option 2 would hit the financial targets faster. Ms. Rios added that bond rating agencies generally favor a Council's willingness to meet targets and raise rates when necessary. Ms. Rios presented the questions to consider for the Proposed Recommendations: 1. Does the Commission recommend the two financial plan options to be presented to Council? 2. Does the Commission prefer one of the options over the other and do they want to communicate that to Council? 3. Does the Commission support the transition of the cost of service allocation over a period of time? Commissioner Faulls stated that the plan has been referred to as a 5 -year plan and asked for clarification about the rate increase for the five-year plan. Ms. Rios replied that the increase is only proposed for the first two years and will then be re-evaluated after that. The five-year financial plan will be published to show what the needs are over time and the bigger financial picture, however, action is being requested for only the first two years. Commissioner Faulls asked if the financials plan would be presented in the same manner to the public. Ms. Rios replied in the positive and added that staff will ensure that the public has all information regarding what the financials payfor as well. Commissioner Gehl inquired if there was a metric which shows the number of people lost/impacted when a rate goes up a certain amount. Ms. Rios replied in the negative, noting that this would be very hard to ascertain because it would require specific personal information in order to measure the tipping point. Commissioner Gehl inquired about any impact on the From the Heart Donation. Ms. Rios replied that From the Heart would still be utilized and that there are a number of agencies and charitable organizations in the City who help residents with utility bills, including the City's utility assistance program. Commissioner Ford asked if the 11 -Year Water Services Capital Improvement Plan (CIP), which was distributed to the Commission, was in priority order. Ms. Logan replied in the negative and will provide a priority list to the Commission. Mr. Johnson commented that the CIP is the driver of the financial plan and he has performed a walk -around with the Council members so that they are aware of the drivers. Commissioner Ford inquired if staff had a preference between Across the Board or Cost of Service. Ms. Rios replied that her professional opinion would be to transition a Cost of Service alignment, as it provides fairness/equity over time. Ms. Rios noted that the final decision is under the purview of Council. May 10, 2017 Citizens Utility Advisory Commission Final Minutes Page 3 Commissioner Berryhill asked if the City has the capability to change the due dates of the service bills, as some residents might like to align their bill with their pay check. Ms. Rios did not believe that the system currently had the capability; however, this did not mean it could not be considered in the future. Ms. Rios added that the system is currently undergoing certain upgrades and this suggestion could be pursued. Ms. Rios stated that is very customer -service oriented and works with customers to resolve any issues. Commissioner Ford wondered if Option 2 would be better to get the financials in line more quickly. Ms. Rios replied that from a strictly logical financial perspective, Option 2 would probably be better; however, Option 1 will achieve the same effect over a short period of time with a smaller immediate impact to the public. Commissioner Ford motioned to recommend that the two financial plan options be presented to Council. Commissioner Berryhill made the second. Motion carried 5 — 0. Commissioner Ford motioned that the Commission prefers financial plan Option 1 and for staff to communicate this preference to Council. Commissioner Faulls made the second. Motion carried 4 —1. [Commissioner Gehl opposed.] Commissioner Ford motioned that the Commission supports the transition of the cost of service allocation over a period of time. Commissioner Gehl made the second. Motion carried 5 — 0. VI. UTILITY RATE STUDY PUBLIC OUTREACH PROPOSAL Ms. Kerri Logan, Deputy Water Services Director; and Ms. Michelle Woytenko, Deputy Public Works Director presented details on the Utility Rate Study Public Outreach proposal, which included information on desired outcomes, methods of outreach, and logistics. Ms. Kerri Logan presented the following: Public Outreach — Utility Rate Studies • Desired Outcome o Develop a shared understanding between residents, the business community, and the city on the formation and process and determining utility rates to include residential solid waste, water, and sewer services for long term sustainability and to ensure a high quality of life in Glendale. • Purpose o Actively engage the public o Provide opportunities for two-way learning ■ Public to staff ■ Staff to public • Public Meetings o Introduction ■ Explain process, background, and framework for public outreach meeting o Information Stations ■ Solid Waste ■ Water Services o Surveys/Feedback 0 Multiple Opportunities May 10, 2017 Citizens Utility Advisory Commission Final Minutes Page 4 • Information Stations: Storyboards o Department Mission Statements o Valley Comparisons o National Trends o Historical Adjustments o Ratemaking Challenges o Current Capital and Infrastructure ■ Solid Waste Fleet and Equipment ■ Water Plan Operations Systems ■ Water Field Systems ■ Environmental Regulatory Requirements Ms. Kerri Logan presented the following: Public Outreach — Utility Rate Studies • Logistics o 4 Public Meetings ■ 3 Evenings ■ 1 Saturday Morning ■ Tentative dates have been scheduled, will be finalized, and announced. ■ Each meeting will be approximately 2 hours, with a short presentation, followed by an open house style, with information stations. Communication Outreach o City Website o Council Newsletters o Utility Bill o Press Releases o Letters ■ Neighborhood Associations ■ Chamber of Commerce o Social Media o A copy of a Draft Waster Services Rate Study Survey was distributed to the Commission. o Vice Chair Short suggested very large ads in the Glendale Star, and presentations to specific clubs such as Rotary Clubs and others. • Next Steps o Council Workshop — June 6, 2017 • Background ■ Review materials presented to CUAC ■ Review recommendations ■ Review public outreach plan o CUAC Role at Workshop ■ Commission is invited to attend o August 2, 2017: CUAC Meeting ■ Review data obtained in public outreach o August 15, 2017: Council Workshop o September 26, 2017: Public Hearing at Council Meeting May 10, 2017 Citizens Utility Advisory Commission Final Minutes Page 5 Mr. Johnson noted that at the June 27, 2017 Council meeting, staff will request from Council a Notice of Intent to Raise Rates, which is a legal requirement and notifies the public that the City is planning on raising rates. Commissioner Faulls suggested that during the public outreach, staff should present the success of the utilities in the City and the great job that staff has been doing. Vice Chair Short suggested a PowerPoint or a video on Channel 11. Ms. Logan replied that a video is a great idea; however, completion would depend on time constraints. Commissioner Gehl suggested a Storyboard which shows a recreation of a water bill today and what it would look like under the new financial plan. Mr. Johnson agreed that this would be a helpful visual. Ms. Woytenko noted that Mr. Phil Mercier has created "What's My Bill?" for Solid Waste, but not yet for Water. Vice Chair Short wondered if this could be included on the City website as an interactive tool. Ms. Woytenko replied that this was the intent of staff; however, she was unsure if this could be completed in time but will follow-up on the request. Mr. Johnson noted that Glendale's bills include water, sewer and solid waste while other valley cities only have water and sewer. Mr. Johnson will work with Raftelis and Mr. Hatch to develop a benchmarking tool for a whole bill comparison to other valley cities. Commissioner Faulls inquired if the Commissioners are attending the public meetings as residents or as Commissioners. Mr. Johnson replied that the Commissions must let staff know which meetings they will attend due to quorum issues. Ms. Woytenko replied that the intent is for the Commissioners attend the meetings as residents and not speaking on behalf of the Commission. Vice Chair Short thanked staff for the presentation and hard work. VII. CALL TO THE AUDIENCE An opportunity to address the Commission was provided to members of the public. No comments were made. VIII. FUTURE AGENDA ITEMS No new agenda items were suggested. VIII.COMMISSIONER COMMENTS Commissioner Ford commented that it is important to set the expectations for citizens that the rates are going to increase, not immensely, but as a cost of receiving excellent services. Commissioner Ford stated that staff should communicate what is working, where the utility is going, and delineate the value of an increase so that it will not be taken negatively. Commissioner Ford stressed the need to weigh the positives in relation to the value of what is received. Commissioner Ford requested an updated calendar, as there have been a few verbal revisions. Mr. Johnson will send an updated calendar to the Commissioners. IX. NEXT MEETING DATE The next meeting will be on August 2, 2017. X. CALL FOR ADJOURNMENT May 10, 2017 Citizens Utility Advisory Commission Final Minutes Page 6 Motion by Commissioner Gehl, second by Commissioner Faulls, to adjourn the meeting at 7:26 p.m. Motion carried 5 — 0. The Citizens Utility Advisory Commission meeting minutes of May 10, 2017 were approved this 6ffi day of September, 2017. Denise Kazmierczak Recording Secretary