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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 5/1/2019MINUTES CITIZENS UTILITY ADVISORY COMMISSION OASIS WATER CAMPUS 7070 NORTHERN AVE. GLENDALE, ARIZONA 85303 MAY 1, 2019 6:00 P.M. 1. CALL TO ORDER Chair Liebman called the meeting to order at 6:00 p.m. 2. ROLL CALL Present: Chair Jonathan Liebman, Vice Chair Ron Short, and Commissioners Amber Ford, Larry Flatau, Robert Gehl, Robin Berryhill, and David McGrew Absent: None Also Present: Craig Johnson, Water Services Director; Michelle Woytenko, Field Operations Director; Kerri Logan, Water Services Administration Deputy Director; Dan Hatch, Water Services Financial Administrator; Angela Ruffalo, Water Services Management Assistant; Julie Cary, Water Services Financial Analyst; Robert Perez, Field Operations Business Analyst; Katrina Alberty, Water Services Administrator 3. CITIZEN COMMENTS If citizens wish to speak on a matter concerning the Citizens Utility Advisory Commission that is not on the printed agenda, please complete a yellow Citizen Comments Card. If citizens wish to speak on a matter that is on the agenda, please complete a green Citizen Comments Card. Provide the card(s) to the designated staff person prior to the beginning of the meeting. Once your name is called by the Chairperson, please proceed to the podium and state your name and address for the record. Please limit your comments to three minutes or less for items not on the agenda and five minutes or less for items on the agenda. No comments. 4. APPROVAL OF THE MINUTES 5. a. a Citizen Utility Advisory Commission Minutes of April 3, 2019. Motion by Commissioner Gehl, second by Commissioner Flatau, to approve the April 3, 2019 meeting minutes as written. Motion carried 7 — 0. DIRECTOR'S REPORT Water Services updates presented by: Craig Johnson, P.E., Director Field Operations updates presented by: Michelle Woytenko, Director Mr. Johnson, Water Services Director, gave a report which included the following: • Council held a budget workshop yesterday. On May 14th, Council will vote on budget approval at their evening meeting. • Last Thursday, the Water Services Department had its annual pig roast at which 160 people were present. Human Resources gave a presentation and the Employee of the Year, Supervisor of the Year, and Team of the Year were selected. • On April 16th 17th and 18th, the Arizona Water Conference was held in Phoenix. The conference was very informative. An annual competition is held at the conference which was "Hydrant Hysteria". Sixteen two -person teams competed and had to put together a fire hydrant from scratch. This year was the first year Glendale entered the contest. The Glendale team put the fire hydrant together in 121 seconds, won the competition, and are the State Champions. The team will compete in the National Championships on June 9 th in Denver, Colorado. The fire hydrant supplier sponsors the cost of the trip. Mr. Johnson showed a video of the team putting together the hydrant at the competition. Chair Liebman inquired about the names of the Employee of the Year, Supervisor of the Year, and Team of the Year. Mr. Johnson did not have all of the names at hand. Chair Liebman asked that all of the names of the winners be included in the meeting minutes. • Employee of the Year: Anthony Maldonado • Supervisor of the Year: Jeff Kaylor • Team of the Year: Wastewater Collections Team Ms. Woytenko, Field Operations Director, gave a report which included the following: • Blue Barrel Pilot Program Update: The pilot program in the Cholla and Yucca Districts are wrapping up. An audit will be done and ready by the first week of August and will be presented to the Commission. • At the May 14th Council workshop, Ms. Woytenko will present the Landfill Update and Recycling Presentation that was previously presented to the Commission. Some of the Commissioners comments have been included in the revised presentation. 6. CURRENT FISCAL YEAR FINANCIAL UPDATE Presented by: - Dan Hatch, Financial Administrator, Water Services - Michelle Woytenko, Director, Field Operations and Robert Perez, Business Analyst, Field Operations Mr. Hatch gave an update on financials for the Water Services Department, which included the following information: • Financial Policies: c Maintain financial sustainability o Provide services at cost recovery o Target Fund Balance at 50% of the O&M budget amount c Target Days Cash on Hand at 250 days o Target Senior Debt Service Coverage at 1.85x o Latest Credit Rating = AA- • FY2019 Nine -Months YTD Revenue and Expenses (chart displayed) • FY2020 Budget Request o Operating Budget (chart displayed) o Supplementals Request $760,000 • $500,000: Chemicals/cost increase • $124,000: System Administrator/add one FTE to Information Management • $ 68,000: Operator I/add one FTE to Water Plant • $ 68,000: Operator I/add one FTE to Wastewater Plant • The salary figures include benefits. o Capital Improvement Plan (financial chart displayed) c Financial Schedule (chart displayed) • Rate Study o January: CUAC reviewed rate study objectives o February: CUAC reviewed financial plan o March 5th: Council workshop oApril 18th: Council budget review oApril 23rd: Council approval/Notice of Intent to increase rates a May: Communications Plan to start (multi -media) °June 25th: Public Hearing and Council vote on rate schedules Mr. Hatch concluded his presentation. Chair Liebman inquired as to how the budget compares to the pro -forma. Mr. Hatch explained that staff tends to budget with lower revenue and higher expenditure assumptions, the rate increase was chosen to be smoothed out over five year, and the pro -forma targets will be met closer to the end of the five years. Chair Liebman asked if the Commission could look at the pro -forma at the next financial update to see how well the pro -forma forecasting stacks up. Mr. Hatch replied that this can be done in November. Chair Liebman inquired about the specific chemical increases. Mr. Hatch replied that the chemicals are aluminum sulfate and sodium hydroxide, which are in high demand and short supply. Mr. Hatch explained that ships delivering these chemicals were unable to port due to hurricane Harvey. Chair Liebman asked if this was a one-time increase. Mr. Hatch replied that the situation has not been resolved yet. Commissioner Gehl asked for a breakdown of the "Other Revenue" category on the Budget Request Schedule. Mr. Hatch provided details. Commissioner Flatau wondered since FY2019 was a wet year and use was down, why was there no decrease in chemicals. Mr. Hatch explained that there is a certain amount of chemicals needed for a certain range of water. Commissioner McGrew asked about the relationship with the City of Peoria regarding the Pinnacle Peak reimbursement. Mr. Johnson provided details. Mr. Perez gave an update on financials for the Field Operations Department, which included the following information: • Field Operations - $45,431,998 —172 FTE's o Facilities c Landfill o Solid Waste o Fleet o Mission Statement: We improve the lives of the people we serve every day through environmentally sound collection and disposal of solid waste, and fiscally prudent management of the city's assets. • FY2020 New Operating Budget Requests a Landfill: • Scale House Cashier $ 17,983 • Landfill Legal Services $350,000 • Safety Program Manager/.5 FTE $ 49,594 c Solid Waste • Safety Program Manager/.5 FTE $ 49,594 • Landfill Tipping Fee Increase $229,279 • Equipment Operator, Street Sweeper/1 FTE $ 68,300 • Service Worker, Litter Control/1 FTE $ 65,380 • Solid Waste Commercial Containers $105,000 • Shop Charges Increase $513.672 ($123,000/ongoing - $390,672/one-time) • Solid Waste Financials (charts displayed) c FY18 Budget and Actual o FY19 through FY23 Forecast c Budget Request Schedule • Landfill Budget Request Schedule (chart displayed) Mr. Perez concluded his presentation. Chair Liebman inquired about the Legal Services expense in Landfill. Ms. Woytenko replied that this is the estimated cost to defend the appeal regarding the Vieste Waste Services Contract, on which a presentation was previously given to the Commission. Ms. Woytenko stated that the land lease was terminated and the building stands empty today. Ms. Woytenko added that the amount requested in the budget is a worst case scenario, but is prudent budgeting. Chair Liebman inquired about Landfill Tipping. Ms. Woytenko explained that this fee is for when the City collects solid waste, which then needs to be dropped off at the Landfill. This is the fee for the cost at the Landfill and is basically one department paying another. Chair Liebman asked about the increase in Shop Charges. Ms. Woytenko explained that this cost is for equipment repair and maintenance of the fleet, which is older. Ms. Woytenko noted that there is a delay in the receipt of new equipment and therefore, this is one-time cost needed to maintain the older fleet. Chair Liebman stated that he will review the information in more detail and may send questions or comments by email to staff. Commissioner McGrew wondered how many street -sweepers the City has and Mr. Perez replied that there are five. Commissioner McGrew asked if the sweepers are run all of the time. Mr. Perez noted that they are mostly in full production. Commissioner McGrew inquired as to how staff determines replacement need, by mileage or hours. Mr. Perez explained that replacement is determined by the vehicle type: if it moves people, it is miles and year of vehicle; and if it is a truck, it is replaced earlier due to engine wear. Commissioner McGrew asked if the vehicles are auctioned off and Mr. Perez replied in the positive. Mr. Perez announced that trucks and tractors will be replaced over the next few years. Commissioner Flatau asked if the street -sweepers are utilized after road repairs. Ms. Woytenko replied that the contractors are responsible for that type of sweeping. The City's sweepers are dedicated sweepers for arterials at night and residential streets during the day. Commissioner Flatau commented that he has seen more sweepers out than usual. Ms. Woytenko replied that the sweepers used to be run every three months and this has been increased to every two months for a relatively small cost increase. Commissioner Berryhill stated that she could see the difference in the increased street -sweeping and complimented staff. Commissioner Berryhill inquired about the commercial container program. Ms. Woytekno explained that this is an area where the City competes with private waste companies. The City's commercial revenue has increased and the budget supplemental is for the purchase of two new containers and to refurbish others. Commissioner Berryhill inquired about the cost for a new container. Ms. Woytekno relayed that cost depends on the size, but can range from $2,500 to $8,000. Commissioner Berryhill wondered if the requested amount would be enough for the demand. Ms. Woytenko believed the figure to be conservative, but correct. Vice Chair Short wondered how the City's Shop Charges compare to the private sector. Mr. Perez explained that the in-house costs are less for typical items such as oil changes and wear and tear maintenance. Ms. Woytenko added that the fleet vehicles go through a rigorous safety inspection when in the shop due to public liability and the need to be maintained to a higher standard. Ms. Woytenko noted that Mr. Perez will be conducting an in-depth study in the Shop Charges. 7. COMMISSIONER COMMENTS AND SUGGESTIONS Vice Chair Short requested a more in-depth presentation on the Balanced Scorecard. Commissioner Gehl reported that Urban Irrigation started a few weeks ago and is working fine. Commissioner Berryhill agreed. Commissioner Flatau commented that he and Commissioner McGrew took a tour hosted by staff of the Field Operations Yard. Commissioner McGrew complimented staff on the Finance Reports and requested a copy of the January pro -forma. Chair Liebman requested an electronic copy of the presentation slides. Chair Liebman noted that two citizens entered during the meeting, but after the Citizen Comments section. Ms. Alberty relayed that she asked them if they had comments, but they said that they did not, however, they left a note for Mr. Johnson. Mr. Johnson read the note aloud, which was a report of a leak in a gutter. Mr. Johnson stated that it is very good that citizens report these issues and that he will get back to the citizens. 8. FUTURE AGENDA ITEMS Commissioners may suggest items for placement on future meeting agendas. August 2019: • Blue Barrel Pilot Program Follow-up • Balanced Scorecard Update— Field Operations After August 2019 • Balanced Scorecard Update — Water Services 9. NEXT MEETING The next regular meeting of the Citizens Utility Advisory Commission will be held on August 7, 2019 at 6:00 p.m., at the Oasis Water Campus, 7070 W. Northern Ave., Glendale, Arizona, 85303. 10. ADJOURNMENT Motion by Commissioner McGrew, second by Commissioner Flatau, to adjourn the meeting at 7:15 p.m. Motion carried 7 — 0. SPECIAL ACCOMMODATIONS For special accommodations, please contact Miriam O'Neal at (623) 930-4103 at least three (3) business days prior to the meeting. Hearing impaired persons may use the Arizona Relay Service by dialing 711. Pursuant to A.R.S. 38-431(4), one or more members of the Citizens Utility Advisory Commission may be unable to attend the meeting in person and may participate telephonically. Respectfully submitted, Denise Kazmierczak