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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 6/13/1989MINUTES OF THE WORKSHOP SESSION OF THECITYCOUNCILOFTHECITYOFGLENDALE, MARICOPA COUNTY, ARIZONA HELD TUESDAY, JUNE 13, 1989 AT 3:10 P.M. Mayor Renner called the Workshop Session of the GlendaleCityCounciltoorderintheWorkshopRoom, B-3, in theGlendaleCouncilChambers. Council members present were: Bellah, Falbo, Hugh, McAllister, and Tolby. Member absent: Huffman. Also present were Martin Vanacour, City Manager; PeterVanHaren, City Attorney and Linda Ginn, Deputy City Clerk. 1. BROKER CONTRACT FOR AIRPORT LEASES Ruth Fisher, Airport Manager, gave a brief summary by stating that in an effort to secure more tenants and generate more revenue at the Airport, city staff proposes to utilize the services of business brokers and real estate brokers. Such brokers are aware of clients seeking land and office space and could, for a fee, channel such business to the Airport. The brokerage fee could be an amount equal to 5% of the annual lease payments during the term of the lease, but not to exceed five years, whichever is greater. All commissions would be paid from lease payments the City receives from the tenant; if no lease payments are received from the tenant, no commission is due. Ms. Fisher stated that each and every land situation at the airport is negotiable so individualized agreements could be worked out with prospective tenants. Discussion ensued on the provision to pay the commission up front, creating the possibility of not receiving all of the lease payments in the event the tenant went into bankruptcy. Mayor Renner suggested the use of current, existing market forms for the agreements and also to let the Airport Manager negotiate with the prospective tenants as to the terms of the individual agreements. This item will be placed on a future Council agenda for formal consideration. 42- 2. EPA SEWER RATE MODIFICATIONSCityManagerVanacour stated the EnvironmentalProtectionAgency (EPA) stipulated that the City's sewerratesmustbemodifiedtoreflectthevolumeofsewagecontributedbyallusers. This stipulation is a result ofacceptinganEPAgranttoconstructtreatmentfacilitiesattheregionaltreatmentplant. The stipulation requires thattheCityadoptapprovedratesbycompletionoftheconstructionrelatedtothegrant. On April 4 the CityCounciladoptedanewratestructurethathadbeenverballyapprovedbyArizonaDepartmentofEnvironmentalQualityADEQ). On April 6, 1989, EPA requested modifications to theratestructure. The State changed the percentage containedwithintheformulafrom55% to 95% of water consumed. ThesemodificationsrequiredtheCitytorescindtheApril4thresolutiononMay9. Staff has revised the rates to reflect the changes required by EPA and ADEQ. The new rates modify the sewer charges to permit each user to be charged based on an average water consumption for winter months. Single-family residential users will be billed based on water consumption for the first time. Other users rates will be modified based on the sewage characteristics and volume. Apartments, condominiums, townhouses and mobile home parks will be charged on a per unit basis similar to single-family residents. Users in all categories will be paying fees related to their actual contribution of flow and the strength of those wastes. Users who discharge high strength and high volume wastes will be paying their share of the costs according to this formula. Due to the timing of the Water and Sewer Bond sale in July, and to be in compliance with EPA's acceptance of the grant funds the new rate structure needs to be approved before July 1. The staff is recommending implementation of the rates on October 1, 1989, to allow adequate appeal processes to be created and publicized. Vice Mayor Tolby said he felt there were actually two issues to be considered; the shortfall caused when Sun City dropped out of the wastewater treatment plant agreement and the EPA modified figures, either of which would cause a sewer rate increase for the citizens. He registered concern about considering these two issues together because he feels it clouds the total issue. He said he felt the Utilities Committee should and would have addressed the Sun City issue either with a tax increase, decrease in spending or some way to handle the shortfall caused by their withdrawal from the wastewater treatment plant agreement if they had had this current information presented to them at that time. He said the EPA issue is a separate issue that is mandated to the City and should be handled separately. 43- Discussion ensued with the general consensus beingCouncilwouldliketoreceivemoreinformationonpossibleoptionsandalternativemethodstosolvethesewerrateissue. This item will be placed on a future workshop agenda forfutherdiscussion. 3. INTERGOVERNMENTAL REPORTMarionPorch, the Intergovernmental Liaison, briefed theCityCounciloncurrentlegislativeissues. This item is for information only. COUNCIL COMMENTS AND SUGGESTIONSNone. F.VD-Wop-)V,1 mM There being no further items, the meeting was adjourned at 4:30 p.m. Deputy City Clerk