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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 11/6/2019Glendai� A R I Z O N A MINUTES CITIZENS UTILITY ADVISORY COMMISSION OASIS WATER CAMPUS 7070 NORTHERN AVE. GLENDALE, ARIZONA 85303 NOVEMBER 6, 2019 6:00 P.M. 1. CALL TO ORDER Chair Liebman called the meeting to order at 6:03 p.m. 2. ROLL CALL Present: Jonathan Liebman, Chair Ronald Short, Vice Chair Robin Berryhill, Commissioner Larry Flatau, Commissioner Amber Ford, Commissioner David McGrew, Commissioner Also Present: Kerr! Logan, Water Services Administration Deputy Director Amanda McKeever, Interim Field Operations Department Deputy Director Katrina Alberty, Water Services Administrator Megan Sheldon, Water Services Environmental Resources Deputy Director Julia Cary, Water Services Financial Analyst Ron Serio, Water Services Plant Operations Deputy Director Robert Perez, Field Operations Business Analyst 3. CITIZEN COMMENTS None. 4. APPROVAL OF THE MINUTES Motion by Commissioner Berryhill, second by Commissioner McGrew, to approve the October 2, 2019 Citizens Utility Advisory Commission meeting minutes as written. Motion carried 6 — 0. 5. DIRECTOR'S REPORT Ms. Kerr! Logan, Water Services Administration Deputy Director, reported the following: • Mr. Craig Johnson, Director of Water Services, was unable to attend this evening's meeting as he was at the Glendale University Citizens Academy graduation tonight. • Councilmember Aldama was holding his district meeting this evening and some staff was in attendance at that event. • A Council Budget Workshop calendar was provided, and Commissioners were welcomed to attend the Workshops. Ms. Logan was unsure at this time what day Water Services/Field Operations was scheduled to present in April and will advise the Commission once known. Chair Liebman suggested working backwards from the Council budget meeting calendar to determine when we should have presentations to the Commission on the CIP and O&M budgets. Ms. Logan is working to have a draft Agenda schedule for calendar year 2020 for the Commission at the December meeting. Ms. Amanda McKeever, Interim Field Operations Department Deputy Director, reported the following: • On October 25th, the City of Glendale Landfill hosted the 35th Annual Solid Waste Association of North America International Road -E -O, a competition for heavy equipment operators to test their skills and abilities. Equipment Operators Robert Ruiz and Charles Margelot both won at the state -level, which qualified them for the competition in October. Charles Margelot won first place in his division, and the overall Top Gun Award. • Ms. McKeever is one of two Interim Field Operations Department Deputy Directors. She is overseeing Administration, Solid Waste and Landfill Operations. • Mr. Ernie Ruiz is the second Field Operations Deputy Director. His focus is on Fleet and Facilities. The agenda item was concluded. 6. CENSUS PARTICIPATION OUTREACH Ms. Alberty gave a presentation on the 2020 Census, which included the following information: • What is the Census? oThe U.S. Constitution mandates a count every 10 years of everyone living in the country. • What is the Census? oAllocation of more than $650 billion in federal funding each year oNumber of seats in Arizona receives in the U.S. House of Representatives • When is the Census? o Census Day is April 1, 2020 oCensus Bureau has begun hiring temporary workers oCensus employees have been conducting address canvassing to verify their mailing lists o Residents will start receiving mail from the U.S. Census Bureau in March 2020 o Respond by the end of April to be counted • What's New for the 2020 Census o For the first time this year, you can respond to the Census online • Saves all taxpayers money if everyone responds early • Respond when it's convenient for you o May also still respond by phone or via a paper questionnaire o If no response is received by late April, the Census Bureau will send employees door-to-door • Costly for taxpayers and less convenient • What About Privacy and Security? o Information collected cannot be shared with any other government agency or law enforcement — It's the Law oCensus employees will never ask for: • Social Security numbers • Banking information • Donations of any kind oCensus Bureau employees will have: •An official Census Bureau ID •A laptop • A tote bag with the Census logo • What is in it for Me? 0$3,000+ annually in state, federal, and regional funding oCities rely on this funding for important programs, including: • Public safety, education, roads, and healthcare • State shared revenue is also distributed by population and pays for nearly all city programs like: • Libraries • Recreation • Parks • Code Compliance o When members of our community go uncounted, that funding goes to other cities and states • Directly impacts program funding and community amenities • We Need Your Help o Respond to the questionnaire in March o Remind everyone you know —friends, family, neighborhoods, coworkers •Invite us to speak at community groups you are involved with oVisit www.icount2020.info and sign up to receive reminders oBe a Census Bureau worker — view job opportunities at https://2020census.gov/joy oAdvocate for the importance of participating with traditionally undercounted populations Chair Liebman inquired as to the amount of money Glendale received from the last census. Ms. Alberty did not know the amount off hand and will follow up. Commissioner McGrew asked if the $3,000 per person amount included all persons, regardless of age, even babies. Ms. Alberty replied in the positive. Commissioner McGrew inquired if the City would promote the census to the general public. Ms. Alberty replied in the positive, noting that there is a census team who will be providing additional outreach. Commissioner Flatau wondered if the City could rebut a census count with which it did not concur. Ms. Logan believed the City could do so. Commissioner Berryhill inquired if the homeless was included in the census count. Ms. Logan explained that an annual homeless count is conducted separately. Ms. Logan will follow up with Ms. Jenna Goad for a definitive answer on the census. Chair Liebman asked if the $3,000 per person came directly to Glendale. Ms. Alberty explained that the total funds are given to the state and the distributed by the state to cities and towns. The agenda item was concluded. 7. CURRENT FISCAL YEAR FINANCIAL UPDATE Mr. Hatch gave a financial update on the Water Services Department, which included details on the following, including supporting financial schedules: • FY2018 and FY2019 • Revenue for Water, Sewer, and Other o Expenses for O&M, Debt Service, and Capital Cash Outlay • FY2020 Operating Budget • FY2020 Three -Months YTD Actual: Revenues and Expenses • Capital Improvement Plan: FY2020-2024 5 -Year Cash Flow Mr. Hatch noted that FY2019 revenues exceeded budget by $7.0 million. Mr. Hatch stated that there was a wet fall and winter with a cool spring and consumption was down. Chair Liebman inquired about the reason for $3.4 million favorable to budget in for FY2019 O&M Expense. Mr. Hatch stated that there were 17 to 25 position vacancies throughout the year. Chair Liebman wondered if this had impacted service levels. Mr. Hatch replied in the negative, stating that overtime was utilized to cover shifts when necessary. Chair Liebman asked if the $19.4 million favorable to budget for FY2019 Capital Cash Outlay was due to Pyramid Peak project not beginning. Mr. Hatch replied in the positive. Chair Liebman asked if this had any service impact. Mr. Hatch replied in the negative. Ms. Logan explained that operations continue as services are reallocated as needed for proper coverage. Ms. Logan noted that there can be large lead times for heavy equipment for the CIP projects. Chair Liebman commented that there was a period of ten years without rate increases and wondered about not spending the budgeted funds. Ms. Logan explained that there are circumstances beyond staffs control on these large projects, however, staff has a solid plan for CIP and is moving forward. Chair Liebman asked why the $25.0 million in Capital Cash Outlay for FY2020 was not spent yet. Mr. Hatch explained that the Capital Cash Outlay is not evenly spent throughout the year, such as with chemicals. Mr. Hatch explained that many of the large projects are completed later in the fiscal year. Ms. Logan stated that Pyramid Peak was just getting into full swing, more will be spent on the project, and more invoices will be received. Chair Liebman commented that there were a lot of favorable numbers and suggested that staff tighten up estimates and forecasts. Chair Liebman offered to share forecasting tools and methods. Ms. Logan responded that some of the favorable numbers were due to timing as the report in question was only for the first three months of FY2020. Ms. Logan added that staff does not want to run the budget really tight, in order to be able to adapt and react to changing situations. Ms. Logan noted that other municipalities run their budgets similarly. Chair Liebman noted that the matrices were looking favorable and congratulated staff. Commissioner Flatau stated that one column did not add up to the total displayed and asked if the difference was the contingency number. Mr. Hatch replied in the positive. Commissioner Flatau suggested noting this in some manner when presenting to Council. Mr. Hatch concluded his presentation. Mr. Perez gave a financial update on the Field Operations Solid Waste Department, which included details on the following: • Forecast Overview— Revenue and Expense o FY2019: Actual and Budget oFY2020 through FY2024: Forecast • Total Income Details o FY2020 through FY2024: Forecast o Positive growth outlook oCommercial rate increase o Residential population increase • Business Planning: A Look Ahead oTechnology • Commercial — Roll -Off Department: New asset management system which is great for tracking and maintaining steady revenue. • Residential: Implementing a new routing optimization software and evaluating an advanced camera technology to monitor vehicles and drivers' habits to ensure safe driving and accountability. oCommunity • Continuation of the alley -gating program, which mitigates illegal dumping, increases safety, and helps police. • Ms. McKeever stated that the program was getting positive feedback from neighborhoods and continue to get request for alley -gating. o Fleet Modernization • The fleet has severely aged. • Goal is to incorporate new vehicles, reduce the age of the fleet, and reduce the rapidly growing maintenance costs. oOptimizing Operations •Streamline internal processes • Implement new strategies to lower overtime costs • Funding Components o FY2020 •Commercial Rate Adjustment: We will be adjusting rates effective January 1, 2019. Predominantly a 5% to 10% rate adjustment. o FY2021 • Rate Adjustment & Review: 2.5% increase in the Commercial Rates, and an assessment of Residential Rates. o FY2022 • Commercial Adjustment Re -Review: Reassess Commercial Rates. o FY2023 • Sustainable Growth: Building on and following our financial forecasting, providing a long-term sustainable future. Chair Liebman asked if the estimated residential growth was mainly on the southwest side of the City. Ms. McKeever stated that the growth is from all over the City, including the southwest side and infill. Chair Liebman inquired further on the growth estimate. Mr. Perez explained that the rate shown is a blended growth rate for the analysis and past years have had population spikes. Ms. McKeever noted that the Residential estimate was not based on rate increase, but rather population growth. Chair Liebman noted that the analysis shows that at FY2022, all revenue would not be spent. Ms. McKeever stated that once all of the old equipment is turned over, there would be less maintenance costs. Chair Liebman asked if items in the Business Planning: A Look Ahead slide was included in the department's balanced scorecard. Mr. Perez replied in the positive, particularly noting Technology. Chair Liebman inquired about the Commercial Rate increase highlight of 5% to 10%. Ms. McKeever explained that commercial customers have signed agreements, which will be honored, so not all expire at the same time. Ms. McKeever stated that the range was an estimate due to the timing of contract renewals. Chair Liebman wondered how the rate compared to competition from private companies. Ms. McKeever replied that the City was competitive, still very affordable, with the customer service provided as a true value. Commissioner Flatau asked if the City was obligated to honor the contract. Ms. McKeever replied in the positive and added that the City would not request to change or amend signed contract. Commissioner Ford asked if new contracts would have the new rates. Ms. McKeever replied in the positive and noted that the public notification process will be followed. Commissioner Ford asked if the new contracts would include language regarding the potential for rate increases. Ms. McKeever was fairly positive that escalators were not built into the contract. Commissioner McGrew inquired as to the percent of overtime caused by vacancies. Ms. McKeever did not have the exact amount at hand but reported that the solid waste industry is one of the top five most dangerous industries in the world. Ms. McKeever stated that staff is working on strategies for the retention and recruitment of drivers. The department is down six drivers currently. Ms. McKeever added that there has been growth in bulk trash overtime because there is one week allotted for pick up and if it is all not picked up by Friday, overtime will be utilized. Vice Chair Short asked about the City's retention of commercial customers. Ms. McKeever replied that over the last five years, the number of customers and number of bins has been relatively stable. Ms. McKeever indicated that in 2017, a law was passed which allowed private haulers, not just the City, to pick up bins at apartment complexes. Ms. McKeever stated that the City lost customers at that time but was steadily getting some of this business back. The agenda item was concluded. 8. COMMISSIONER COMMENTS AND SUGGESTIONS Commissioner Ford complimented the excellent presentations and asked for specific focus on the slides to be more legible. Commissioner Flatau agreed. Chair Liebman reminded all not to hit "reply all" if responding to a recent email from Ms. Logan answering a question by Chair Liebman. 9. FUTURE AGENDA ITEMS December 2019: • Preliminary 2020 Agenda 10. NEXT MEETING The next regular meeting of the Citizens Utility Advisory Commission will be held on December 4, 2019 at 6:00 p.m., at the Oasis Water Campus, 7070 W. Northern Ave., Glendale, Arizona, 85303. 11. ADJOURNMENT Motion by Commissioner Flatau, second by Commissioner Ford, to adjourn the meeting at 7:21 p.m. Motion carried 6 — 0. The Citizens Utility Advisory Commission meeting minutes of November 6, 2019 were submitted and approved this 4 th dayof December, 2019. Resp�'b ufitted, Denise Kazmierczak