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HomeMy WebLinkAbout02/28/2012 Special Council Meeting Minutes ARAA low Or IWO* SPECIAL COUNCIL MEETING MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, February 28, 2012, at or after 6:00 PM Ed Honea, Mayor Patti Comerford, Vice Mayor David Bowen, Council Member Herb Kai, Council Member Carol McGorray, Council Member Jon Post, Council Member Roxanne Ziegler, Council Member SPECIAL COUNCIL MEETING CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:00 p.m. Deputy Town Clerk Torres called roll. All Council Members were present. There was a quorum present. PLEDGE OF ALLEGIANCE /INVOCATION/MOMENT OF SILENCE Led by Mayor Honea. APPROVAL OF AGENDA Motion to approve by Council Member Comerford, second by Council Member McGorray. Passed unanimously 7 -0. CALL TO THE PUBLIC PROCLAMATIONS Marana Aerospace Solutions, Inc. Proclamation. Deputy Clerk Torres read the proclamation. PRESENTATIONS P 1: Relating to Utilities; presentation to provide a summary report on the first two months of the Marana Water Reclamation Facility. Gilbert Davidson read a message from Public Services Director, Barbara Johnson, who could not be present at the meeting. Thom Martinez of Westland Resources presented the item. Mr. Martinez noted that operations of the plant were acquired on January 3, 2012 at 12:01 a.m. Paul Hendricks then spoke on behalf of EUSI. Upon acquisition, the facility was inventoried and deficiencies were noted accordingly. He noted that overall there are only two major systems in the facility that are pertinent; sand filtration and ultraviolet disinfection February 28, 2012 Council Meeting Minutes 1 system. The primary function of the facility is to take the wastewater and treat it biologically to separate the solids from the clean water and make the clean water available for beneficial use. It was found that the sand filter capacity was built to have 3 million gallons a day of extra capacity and that the alarm system controls had been left unconnected. The ultraviolet disinfection system was also found to be built 3 million gallons a day larger than the rest of the plant. During inventory the ultraviolet light bulbs were found to be worn out, and Mr. Hendricks noted that those were very costly to replace. As it currently stands, solids handling of the facility is required by permit to be trucked to the Pima County Walker Road Manhole. This means that the town has to pay Pima County approximately $0.20 per gallon to transport the sludge to the manhole for disposal. Through the work of the project team a decanting operation was put in place and has saved the town over $52,000 since the facility was acquired. Thom Martinez recommended upgrades to the facility to reduce costs and increase efficiencies throughout the plant. He noted that solids handling improvements will incorporate a solids management plan, evaluation of thickening alternatives and reduction of trucking and processing costs. Sand filter optimization improvements will incorporate fixing the float switches and alarms and reducing backwash. UV Disinfection optimization improvements will incorporate replacing UV bulbs, a program weir to allow control and reducing the power used on the system. Recharge improvements will incorporate evaluation of soil types, intake rates and constructed recharge and injection wells. Collection system operational improvements will incorporate data acquisition and evaluation, a system inventory, system cleaning and CCTV. Mr. Martinez noted that the Town still has some legal issues with permitting and regulatory compliance, including land ownership and the notice of suit Pima County served ADEQ with for allowing the Town to run the facility. As a result, the Town is pursuing its own permits for the system. Council Member Ziegler inquired as to why the facility was built so large in capacity. Mr. Martinez noted that there are a variety of reasons, including the economic boom several years ago, that could have played a factor, however he cannot be sure what Pima County's actual reason was. Mr. Hindricks noted that he also did not know why the system was built so large. Council Member Ziegler asked for clarification on who inspects the plant. Mr. Hindricks stated that ADEQ and Pima County come out to inspect the facility. Council Member Ziegler asked for a progress update of the process the Town is working on to receive its own permits. Gilbert Davidson noted that Town staff is working with ADEQ and various state levels to work on the permitting process. Frank Cassidy noted that the pre - application meeting with ADEQ for the Town to receive its own permits has been scheduled for next Thursday and that the Town is proceeding to obtain its own permits. Council Member Bowen inquired on the possibility of resizing the facility. Mr. Hendricks noted that WRI is in the process of evaluating the previous designs of the facility to utilize each component in the most efficient way. Vice Mayor Comerford asked what year Pima County made the extra capacity improvements which were made to the facility. Frank Cassidy responded that he February 28, 2012 Council Meeting Minutes 2 believed the contract with the County was entered into in December 2007. He noted that the Town had given notice of the suit in July 2007. Vice Mayor Comerford thanked the presenters and noted that she is confident in their ability to get the job done and appreciates their expertise and professionalism. CONSENT AGENDA LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A 1: PUBLIC HEARING: Ordinance No. 2012.01: Relating to Utilities; increasing wastewater rates, rate components, fees, and service charges in two increments, and establishing an effective date. Ann Meaders introduced Dan Jackson of economists.com. Mr. Jackson noted that the town has had a current wastewater rate structure since 2008. Once the acquisition of the wastewater facility was completed a new analysis was conducted. The objectives of the wastewater rate plan are to recover sufficient revenues to pay operating expenses, fund any debt taken out to acquire the system and make capital improvements, to try and maintain parity with Pima County wastewater rates and to minimize the impact of any increases on ratepayers. The initial adopted rate plan will result in rates that are equivalent to those charged by Pima County. As a result there will be no financial impact to residents at this time. Mr. Jackson recommends the Town simplify the rate structure by charging based on 1,000 gallons instead of cubic feet and to consolidate all non - residential accounts into one class. Mr. Jackson noted that wastewater rates are increasing significantly throughout the State of Arizona and as a result the rate plan takes into account structured rate increases over the next several years. The recommendation is that in March 2012, the Town implement the same monthly charge that Pima County has in place. Then, in July 2012, he recommends that the monthly charge be adjusted again to coincide with Pima County's projected rate increase schedule. Mr. Jackson noted that the rate Marana residents will be charged is less than the state average charged for wastewater. The rate plan is necessary to ensure that the wastewater utility will have sufficient resources to fund operating and capital expenses. He noted that implementing rates equivalent to Pima County remains heavily dependent on impact fee revenue, emphasizing that without this revenue, significant additional rate increases may be required. Growth is the key to the success of this scenario. Without the projected growth in these alternatives, additional rate increases may be needed. He emphasized the need to continue to monitor the growth rates. Mayor Honea asked for clarification on how wastewater rates are calculated. Mr. Jackson noted that residents use water inside and outside the house. The winter average February 28, 2012 Council Meeting Minutes 3 calculation is used in this recommendation. It is calculated based on the average of outside water use for November, December and January. Council Member Post asked what the optimum growth rate would need to be for the rate schedule to remain as presented. Mr. Jackson estimated that if the rate grows at 150 accounts or more per year then the rate schedule can be maintained similarly to Pima County's. If the rate growth does not occur, then other options have to be explored to determine the best policy for the Town in the future. Council Member Bowen asked for clarification on how long the rate projection is planned. Mr. Jackson noted that the rate proposal is planned for ten years. Vice Mayor Comerford commented that the 2008 rate was set even though we did not have a wastewater facility and that essentially this item is not increasing rates because we did not have any wastewater customers at that time. Council Member Kai expressed concern of the growth rate in the north Marana area and asked Mr. Jackson whether he believed the growth rate could be accomplished. Mr. Jackson noted that much of the growth will be dependent on the economic conditions. Mayor Honea commented that the growth projection is not necessarily dependent on only new housing but on existing housing that will be connected to the system, for example, the Honea Heights and Adonis neighborhoods. Vice Mayor Comerford noted that the reports she has been seeing have shown significant evidence to support the growth needed to maintain the rates and presented. Matthew Foy, living in Gladden Farms at 12765 N. Crooked Willow Drive, addressed the Council. He noted that he is a Pima County Wastewater employee and that he has worked at the Marana plant. He asked for clarification on the operational costs of the plant per year and for clarification on where additional funds to build more capacity for growth would come from. Tom Martinez noted that they have used Pima County's operational budget throughout the whole process. Mr. Foy noted that his concern was mostly future growth and funding those costs. Mayor Honea noted that the plant has two basins that are not currently lined that could be lined and used if needed. Mr. Martinez clarified that two of the basins could be drained and put into operation within 48 hours to maintain the 700,000 gallon a day capacity if necessary. They are currently being used at this time in order to be as efficient as possible with solids management. Mayor Honea noted that once the town receives its own plant permits, the Town will get credit for all of the recharged water at the end of the plant and that will help keep potable water rates down. Motion to adopt Ordinance 2012.01 by Council Member Ziegler, second by Council Member Bowen. Passed unanimously 7 -0. February 28, 2012 Council Meeting Minutes 4 ITEMS FOR DISCUSSION/POSSIBLE ACTION EXECUTIVE SESSIONS E 1: Executive Session pursuant to A.R.S. §38- 431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. E 2: Executive session pursuant to A.R.S. § 38- 431.03(A)(3),(4) and (7), for discussion or consultation with the Town's attorneys and to instruct the Town's representatives concerning (1) the lawsuit entitled Town of Marana v. Pima County/Pima County v. Marana (consolidated), Maricopa County Superior Court No. CV2008- 001131, Arizona Court of Appeals No. 1 CA CV 11 0381; (2) the lawsuit entitled Pima County v. Town of Marana, Pima County Superior Court No. C20116094; and (3) pending legal issues, settlement discussions and contract negotiations relating to the transition of Marana wastewater collection and treatment to the Town of Marana FUTURE AGENDA ITEMS ADJOURNMENT Motion to adjourn at 7:13 p.m. by Council Member McGorray, second by Council Member Post. Passed unanimously 7 -0. CERTIFICATION I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on February 28, 2012. I further certify that a quorum was present. / C��G % ® rfll�8t t - . Bronson, Town Clerk h® ao 44 * * SEAR ®jlllll� February 28, 2012 Council Meeting Minutes 5