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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 3/16/2021City of Glendale 5850 West Glendale Avenue Glendale, AZ 85301 Glendale A R I Z O N A Meeting Minutes Tuesday, March 16, 2021 9:00 A.M. Budget Workshop Meeting Civic Center City Council Mayor Jerry Weiers Vice Mayor Ian Hugh Councilmember Jamie Aidama Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner CALL TO ORDER Vice Mayor Hugh called the meeting to order at 9:00 a.m. ROLL CALL Present: Vice Mayor Ian Hugh Councilmember Jamie Aldama Councilmember Joyce Clark Councilmember Ray Malnar Councilmember Lauren Tolmachoff Councilmember Bart Turner Absent: Mayor Jerry Weiers Also Present: Kevin Phelps, City Manager Michael Bailey, City Attorney Julie K. Bower, City Clerk Vicki Rios, Assistant City Manager Jack Friedline, Assistant City Manager WORKSHOP SESSION 1. FY21-22 BUDGET WORKSHOP Presented by: Lisette Camacho, Director, Budget and Finance Amy Lindsay, Budget Administrator, Budget and Finance Ms. Bower read the item by title. Ms. Camacho provided an overview of the following topics: • Department presentation of Capital Improvement Program (CIP) projects • Landfill • Solid Waste • Water • Wastewater • Council Feedback and Questions Ms. Woytenko, Field Operations Director, provided information on landfill CIP projects by funding source. She explained the bond debt in the landfill CIP was funded by user revenues for the landfill and referenced a list of CIP landfill projects for FY22 through FY31. She provided an explanation on the projects. Councilmember Aldama asked what the department's maintenance and overall costs were for a truck. Ms. Woytenko would provide the information to Council. The compactors were reviewed on a five-year cycle and the trucks were on an eight- to ten-year cycle. The operating and maintenance costs for landfill equipment was paid for by the Landfill Fund. Councilmember Tolmachoff said the binders provided to Council had different figures from the slide presented. City Council Meeting Minutes - March 16, 2021 Page 2 of 6 Ms. Camacho said the figures on the slide included the carryover. Councilmember Tolmachoff asked if the CIP was based on continuing landfill service as -is. The results of recycling surveys were not provided to Council nor had a workshop been held. Ms. Woytenko said that was correct. Staff planned to return to Council in the next several months with recommendations for the recycling program. Councilmember Turner asked if the landfill's gas extraction system was being captured and put to productive use or being flared off. Ms. Woytenko said the gas was being flared. She would provide an update to Council later in the year. Councilmember Clark asked what was done to enhance the storm water controls and the gas extraction systems. Ms. Woytenko said the landfill gas extraction system had been enlarged as well as the storm water controls. It was an ongoing project. Councilmember Clark asked why the storm water controls was budgeted for over $1 million but decreased to $300,000 ongoing. Ms. Woytenko said approximately $300,000 was allocated each year for storm water controls with the exception of two years. FY22 included carryover from FY21 with added funding for the widening of Glendale Avenue. FY26 anticipated the needs of the North Cell. Councilmember Clark asked if the proposed projects for the landfill were dependent on a rate increase. Ms. Woytenko said the FY22 Phased Construction North and the Liner Projects were programmed for the current rate structure. Future projects needed further determination on funding. Councilmember Clark asked if projects in FY23 and beyond, were considered to be essential. Ms. Woytenko said most of the projects were considered essential as required by the operating permit and compliance with required regulations. Staff reviewed the equipment on an annual basis to determine what was needed and what could be deferred. Councilmember Aldama said it was beneficial for Council to have the projects dependent on a rate increase identified. Councilmember Clark requested an identifier on projects that were mandated to meet either state, county, or federal requirements. Mr. Phelps said staff believed it could manage the CIP within inflationary rate increases. It would not be realistic from an operational perspective, to absorb increased costs without rate increases. He encouraged Council to focus less on the percentage of the increase and how the City's rates compared to other jurisdictions. Councilmember Tolmachoff agreed with Councilmember Clark regarding the rate increases. She requested a model displaying the rate of payback to the enterprise funds, including the American Recovery Act funds if the funds were eligible, and what the rates would be once the City Council Meeting Minutes - March 16, 2021 Page 3 of 6 payback was completed. Councilmember Turner wanted to be sure the method used to payback benefitted the residents. Councilmember Turner referenced slide 19 regarding seven replacement trucks for the recycle program. He asked why the requested trucks needed to be half -ton trucks, with extended cabs and lift gates. Ms. Woytenko said the trucks would be used by inspectors within Solid Waste. The trucks were used to serve the residents immediately rather than on the scheduled pick-up day. Councilmember Malnar asked if the plan was for street sweepers to begin a monthly schedule after bulk pick-up. Ms. Woytenko said it would change the level of service and would be a supplemental request that would come before Council at April's budget presentations. Councilmember Clark clarified FY23 and beyond would require reviewing the rate structure and recommending some type of increase to meet future needs. Ms. Woytenko said that was correct. Councilmember Tolmachoff asked if an increase would include tipping fees. Ms. Woytenko said all fees would be evaluated. Councilmember Clark said the CIP projects WA19085 Loop 101 Water Treatment Plant, WA21032 Zone 3 Transit Line, and WW211 99th Avenue Interceptor Sewer projects were removed from the CIP. She asked where the funds were moved to. Mr. Johnson introduced Dan Hatch, Financial Programs Manager, John Henny, Deputy Director and Ronald Serio, Deputy Director. He presented the Water Services CIP which included: • Operation needs that must be met by the CIP • Risks and impact of lack of rehabilitation of infrastructure Councilmember Tolmachoff said the intergovernmental agreements (IGA) were to mitigate the impact of not having water for every resident north of the 101 Freeway if there was a failure. Mr. Johnson said that was correct. Councilmember Clark asked if the IGAs would be strictly for an emergency situation where Glendale lost its capacity to deliver water, or if part of the objective would be to sell water to Phoenix or Peoria when Glendale had excess capacity. Mr. Johnson said the IGAs for the interconnects would be for emergency flow. He said there was an existing IGA with the City of Phoenix for Glendale to provide water at a bulk rate. Discussions with Phoenix could be held about taking more water in a bulk status versus emergency, however, discussions had not yet been held. Councilmember Clark asked if the FY22 projects were satisfied by the current rate structure and if FY23 and beyond would be satisfied only with an anticipated rate increase. City Council Meeting Minutes - March 16, 2021 Page 4 of 6 Mr. Johnson said that was correct. Staff was in the process of conducting a rate evaluation. Options would be prepared close to an inflationary rate then brought back to Council. Mr. Henny gave a presentation on the Wastewater Collection Projects FY22 through FY31. Councilmember Tolmachoff asked if the Luke Air Force Base (LAFB) Wastewater IGA project would be amortized, and if LAFB would pay Glendale as it obtained funding. Mr. Johnson said that was correct. Once the project was accepted, staff would have a detailed list of costs and an amendment to the IGA would be done. Mr. Henny answered Councilmember Clark's question regarding the 99th Avenue Interceptor Line project. It was a duplicate project and the two projects were merged. He stated the City of Phoenix provided the scope and schedule for the particular line and staff programmed it into the budget. Councilmember Clark asked if the funding was removed entirely and not allocated to another project. Mr. Hatch said the amount was a carryover of $237,000 and was combined into project number WW63003. Mr. Johnson said during the recent consultations on the Integrated Master Plan, a recommendation was made against building a $43 million groundwater treatment plant because it was not necessary. The consultant created other options to supplement the plant at less cost and the project was dropped from the CIP. Councilmember Clark asked about the Zone 3 Transmission Line. Mr. Johnson said the consultant's recommendations provided cost savings. Councilmember Clark asked if the funds were moved to other projects that would produce the same result. Mr. Johnson clarified the funds that were set aside for the initial project were reduced and allocated toward a sewer line project. The balance of the funds was moved to the Well Project. Councilmember Tolmachoff asked for information on the funding source and whether the developers would pay the rate payers back for the infrastructure of the sewer line extension. Mr. Henny said the funding source was development impact fees (DIF). Councilmember Tolmachoff said there were no DIF fees for Vision 4. Mr. Phelps said there were no projects under development for Vision 4, but when the projects came online, the developers would pay the DIF fees. Councilmember Turner clarified the project would be paid out of DIF funds accumulated to date and the pool would be replenished when development occurred in Vision 4. Mr. Henny said that was correct. Mr. Serio provided an update on the water plants, including: City Council Meeting Minutes - March 16, 2021 Page 5 of 6 • Reclamation Facilities Projects FY22 through FY31 • Water Treatment Plants Projects FY22 through FY31 Councilmember Clark commented on the continuous need for new programming, new software, and off-the-shelf programs. She suggested the City to hire programmers to write programs specifically to meet the City's needs and integrate into existing systems. Ms. Camacho said the next budget workshop would be held on March 30, 2021. ADJOURNMENT Vice Mayor Hugh adjourned the meeting at 10:53 a.m. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the meeting of the Glendale City Council of Glendale, Arizona, held on the 16th day of March, 2021. 1 further certify that the meeting was duly called and held and that a quorum was present. Dated this 30th day of March, 2021. K. Bower, MMC, City Clerk City Council Meeting Minutes - March 16, 2021 Page 6 of 6