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MINUTES OF THE REGULAR MEETING
OF THE HONORABLE MAYOR AND COUNCIL
OF THE CITY OF CASA GRANDE
HELD IN THE COUNCIL CHAMBERS
510 E. FLORENCE BOULEVARD, CASA GRANDE, AZ 85122
MONDAY, JUNE 6, 2016
 
             
A.   Call to Order

Mayor Jackson called the meeting to order at 7:00 p.m.
 
             
  Invocation

Rev. Mary Lou Adame, of the United Methodist Church delivered the invocation.
 
             
  Pledge of Allegiance

Mayor Pro Tempore Montoya led the Pledge of Allegiance to the Flag.
 
             
B.   Roll Call
 
Present: Ralph Varela, Council Member  
  Lisa Fitzgibbons, Council Member  
  Matthew Herman, Council Member  
  Mary Kortsen, Council Member  
  Dick Powell, Council Member  
  Karl Montoya, Mayor Pro Tempore  
  Robert Jackson, Mayor  
Also Present: Larry Rains, Deputy City Manager
Remilie S. Miller, City Clerk
Brett Wallace, City Attorney
William Schwind, Community Services Director
Mark McCrory, Police Chief
Paul Tice, Planning & Development Director
Kevin Louis, Public Works Director
Chris O'Neil, Judge
Celina Morris, Account Manager
Jeffrey Graves, Budget Analyst
Mike Brashier, Public Safety Communications Manager
             
C.   Minutes:

Council Member Powell moved to approve the minutes listed below. Council Member Fitzgibbons seconded the motion and was carried with a 7-0 voice vote.
 
             
  C.1    City Council Regular - May 16, 2016  
             
  C.2    Airport Advisory Board - February 23, 2016  
             
  C.3    Airport Advisory Board - April 26, 2016  
             
  C.4    Board of Adjustment - April 12, 2016  
             
  C.5    Casa Grande Youth Commission - April 10, 2016  
             
  C.6    Casa Grande Youth Commission - May 14, 2016  
             
D.   Claims  
             
  D.1    Claims - May 12, 17, 19 & 26, 2016

Council Member Varela moved to approve and pay the reported claims dated May, 12, 17, 19, and 26, 2016.  Council Member Herman seconded the motion and was carried with a 7-0 voice vote.
 
             
E.   Meeting Agenda Approval

Mayor Pro Tempore Montoya moved to approve the meeting agenda. Council Member Fitzgibbons seconded the motion and was carried unanimously.
 
             
F.   Special Presentations

None
 
             
G.   Consent Agenda

Mayor Jackson announced consideration of the Consent Agenda and explained that all items listed preceded by an asterisk (*) would be acted upon by a single roll call vote of the Council, unless some members of the Council or member of the public asked that specific items be removed from the Consent Agenda, discussed and voted upon separately.

Mayor Pro Tempore Montoya moved for passage of the Consent Agenda. Council Member Kortsen seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared that all items in these minutes identified by an asterisk (*) preceding the title of that item were passed and adopted.
             
  *G.1   
Final Adoption of Ordinance No. 2695.1
Amendment No. 2 to the Lease Agreement with the
Greater Casa Grande Chamber of Commerce


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2695.1, which appeared before Council for a second reading, authorizing Amendment No. 2 of the Lease Agreement with the Greater Casa Grande Chamber of Commerce, a Non-Profit Organization, to extend the lease term; and authorizing execution of all documentation by City Manager.
 
             
  *G.2   
Final Adoption of Ordinance No. 2961
Accepting the Proposal for Professional Services from Sunrise Engineering, Inc.
Provide Engineering Design Services for the City's Landfill 
West Cell Perimeter Berm and Drainage Ditch Project


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2961, which appeared before Council for a second reading, accepting the Proposal for Professional Services from Sunrise Engineering, Inc. to provide Engineering Design Services; authorizing expenditure of public funds in an amount not to exceed $96,214.00; and authorizing the execution of a contract.
 
             
  *G.3   
Final Adoption of Ordinance No. 2962
Accepting Bids from Dell Marketing, LLP and SHI
Purchase of Hardware and Software of the New CAD/RMS Solutions


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2962, which appeared before Council for a second reading, accepting Bids from Dell Marketing, LLP and SHI for the purchase of Hardware and Software; authorizing the expenditure of public funds in an amount not to exceed $96,261.00; and authorizing execution of contracts with, or purchase orders to Dell Marketing, LLP and SHI, in accordance with the terms submitted to the Arizona State Bid List.
 
             
  *G.4   
Consider the Special Event Liquor License for
Ride for the Warrior Fundraising Event


City Clerk Miller recommended in her request for Council Action form that Mayor and Council instruct the City Clerk to forward local approval to the Arizona Department of Liquor Licenses & Control for issuance of Special Event Liquor License, as requested by the Ride for the Warrior.  Their request is in conjunction with the Palm Creek Golf and RV Resort Chili Cook-Off scheduled for June 11, 2016 from 10:00 a.m. to 4:00 p.m. at Palm Creek Golf & RV Resort, 1110 N. Henness Road, Casa Grande, Arizona.
 
City Clerk Miller reported that the State of Arizona Board of Liquor License and Control assume little jurisdiction and holds no formal hearings on the issuance of Special Event Liquor License.  Almost exclusively the local governing body makes decisions regarding the issuance of such permits.  This is the only type of liquor license, which will not be issued without the approval of the local governing board.
 
The City charges no fee for this type of license.  A $25.00 per day license is charged by the State.

By a 7-0 roll call vote under the Consent Agenda, Council authorized the City Clerk to forward a favorable recommendation to the Arizona Department of Liquor Licenses and Control for issuance of a Special Event Liquor License to Ride for the Warrior in conjunction with the Palm Creek Golf and RV Resort Chili Cook-Off scheduled for June 11, 2016 from 10:00 a.m. to 4:00 p.m. at Palm Creek Golf & RV Resort, 1110 N. Henness Road, Casa Grande, Arizona.
 
             
  *G-5   
3rd Quarterly Report for FY 2015-2016
Boys & Girls Club of the Casa Grande Valley
By a 7-0 roll call vote under the Consent Agenda, Council accepted the Boys and Girls Club of the Casa Grande Valley's 3rd Quarterly Report for FY 2015-2016.  The reports are filed with the City Clerk's Office.
 
             
  *G.6   
Resolution No. 4976
Accepting a Bid from Casa Grande Valley Newspapers, Inc., dba Casa Grande Dispatch
Fiscal Year 2016-2017 Official Advertising Services


City Clerk Miller recommended in her Request for Council Action form that Mayor and Council approve a Resolution that awards a bid to the Casa Grande Valley Newspapers, Inc., dba Casa Grande Dispatch for the City’s Official Advertising for Fiscal Year 2016-2017.

City Clerk Miller reported that in accordance with the Article VIII, Section of 4 of the City's Charter, bids were solicited for the City's Official Advertising for Fiscal Year 2016-2017. The Casa Grande Valley Newspaper, Inc. dba Casa Grande Dispatch submitted the only bid. The bid amount submitted is exactly the same from the last four year's bid: Advertising date is Tuesday through Sunday. The bid amount is $8.55 per column inch; Helvetica font style and 7 point, 7.5 leading on a 132 point column. Bid includes a reduction in price for multiple runs of the same document, 2nd run is $7.53; 3rd and subsequent run is $6.52. A ten percent (10%) discount is offered when legals are supplied electronically. The bid amounts include sales tax.

The City Clerk's 2016-2017 budget includes funds for legal advertising.
 
By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Resolution No. 4976, accepting a bid from Casa Grande Valley Newspapers, Inc. d.b.a. Casa Grande Dispatch to provide Official Advertising Services; authorizing expenditure of public funds in an amount not to exceed $8.55 per column inch; and authorizing the execution of a contract.
 
             
  *G.7   
Resolution No. 4977
Reappointment of Deputy City Magistrates


City Magistrate O'Neil recommended in his Request for Council Action form that Mayor and Council reappoint Judge Robert Mitchell and Judge Dyani Juarez as Deputy City Magistrates, each to two-year terms beginning July 1, 2016.

City Magistrate O'Neil reported that Judge Robert Mitchell and Judge Juarez', current appointments expire on June 30, 2016. Therefore, the Council should appoint each of them to new two-year terms beginning July 1, 2016.

By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Resolution No. 4977, authorizing the Reappointment of Deputy Magistrates for the City of Casa Grande, Arizona.
 
             
H.   Public Comments

Mayor Jackson called for public comments.

Donald Domeyer of 9792 Bradshaw Drive, Arizona City, AZ 85123 and a member of the City of Casa Grande Airport Advisory Board expressed their concerns regarding the maintenance of the airport hangar. Further, Mr. Domeyer requested assistance from the City Council to meet with the board in resolving some issues at the airport.
 
             
I.   Award of Contracts  
             
  I.1   
Ordinance No. 2963
Accepting a Bid from ImageTrend, Inc.
 Software for the Fire Department's Electronic Patient Care Reporting System

Deputy City Manager Rains highlighted the below information as it appeared in the Request for Council Action Form prepared by Fire Chief Miller.

Staff recommends that Mayor and Council approve the purchase of the Image Trend electronic patient care reporting software suite from Image Trend, Inc. under Arizona State Procurement contract No. ADHS16-114329 and authorize expenditure in the amount of $50,700 plus any other taxes.

This project is made possible through the $90,400.00 Gila River Indian Community Prop 202 Grant we were awarded.  We are purchasing the Image Trend reporting software, site license, MARS set up, analytics, CAD integration with New World and on-site training for $24,500.00 and recurring fees for year one at $13,100.00, which is the per run fee, MARS annual fee, Analytic fee and CAD integration annual support fee.  Also included in this initial purchase is the second year of recurring fees of $13,100.00.  This purchase is acquired through Arizona State Procurement contract No. ADHS16-114329, Arizona Prehospital Information and EMS Registry System (AZ-PIERS).

The primary purpose of the Patient Care Reporting/Electronic Patient Care Reporting (PCR/ePCR) is to document all prehospital care and pertinent patient information for medical and legal purposes, as well as serving as a data collection tool for local and statewide quality improvement, protocol development and when approved, research.  The Department collects and compiles raw data into quantitative and summary data as a retrospective review of EMS activity.  ePCR data sets to create a more complete and inclusive patient care record.  The PCR information is provided to the receiving facility and State of Arizona Department of Health Services EMS (AZDHS), including State and Regional Emergency Medical Advisory Committees.

ePCR also allows for appropriate and accurate data submission to the National EMS Information System (NEMSIS), a national effort to standardize the prehospital data collected by EMS agencies.  NEMSIS is the national repository that will be used to potentially store EMS data from every state in the nation.  Since the 1970s, the need for EMS information systems and databases has been well established, and many statewide data systems have been created. However, these EMS systems vary in their ability to collect patient and systems data and allow analysis at a local, state, and national level.
AZDHS participates in the data collection and submission and uses Image Trend, Inc. software to complete this collection.

In order to complete this project, additional purchases will be made following the City’s procurement process.  Items will include 12 tablets, cases, key boards, 12v chargers, a printer and a 2GB data connection for two years.  Also included in the grant is a user group conference for three members to attend during the initial 12-months.

The funds for this project are available in the FY16 budget due to the award of the $90,400.00 Prop 202 Grant from the Gila River Indian Community.  There is no fiscal impact for the first two years of the program.  In year three of the contract the fiscal impact is projected to be $13,100.00 for the Image Trend software suite recurring fees and $3,932.00 for our 2GB data connection. 
DISCUSSION

Deputy City Manager Rains concurred with Mayor Jackson’s comment that this is a new system and there is $13,100 annual fee for the purpose of on-going charges for upgrades and necessary changes in the data that the department will be managing each year.
 
In response to Council Member Kortsen, Deputy City Manager Rains conveyed that the $3,932.00 covers the data connections as well as the basic transmittal of various upgrades to the system.
 
Council Member Herman asked if there will be some savings since the firehouse software is going away.
 
Deputy City Manager Rains conveyed that he is not 100% sure that the Fire Department will completely  move away from utilizing the firehouse software; however, he will verify with Fire Chief Miller and provide a response to Council Member Herman’s inquiry.
 
Deputy City Manager Rains concurred with Council Member Herman’s comment that this program would help and provide good medical data to quantify the calls for fire and to help them better utilize the resources.  The primary purpose of the program is for patient care that will allow for staff to capture more data and become more automated of the functionality of the service the City provides.
 
Council Member Powell expressed appreciation to the Gila River Indian Community that made this project possible by providing the City of Casa Grande Fire Department the $90,400 Proposition 202 grant funding.

City Clerk Miller read by title only Ordinance No. 2963, accepting a bid from ImageTrend, Inc. for the purchase of ImageTrend Software; authorizing the expenditure of public funds in an amount not to exceed $50,700.00; and authorizing execution of a contract with, or purchase order to, ImageTrend, Inc. in accordance with the terms submitted to the Arizona State Bid List.

Council Member Fitzgibbons moved for passage of Ordinance No. 2963.  Council Member Herman seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Ordinance No. 2963 passed to a second reading.
             
  I.2   
Ordinance No. 2964
Accepting a Bid from PFVT Motors, Inc.
Purchase of a 2016 Ford F-450 Dump Truck for Park's Department


Community Services Director Schwind recommended that Mayor and Council approve the expenditure of funds for purchase of one (1) 2016 Ford F450 Crew Cab 2 Ton Dump truck from PFVT Motors, Inc. of Peoria, Arizona, in an amount not to exceed $52,947 through cooperative use of an existing State of Arizona procurement contract.

Director Schwind reported that in August of 2015 Council passed Resolution No. 4939 to provide for the purchase of one (1) 2016 Ford F450 Crew Cab Truck with Dump Body for replacement of an existing vehicle in the Parks Department. The intent at that time was to utilize an existing City Contact for this procurement. This contract specified the purchase of a V10 gas-powered unit. After Resolution 4939 was passed, an order was placed with the vendor for this vehicle; unfortunately the manufacturer’s factory-order deadline for production of the vehicle had passed, and production had ceased. The vendor attempted to locate a V10 gas-powered unit, but was unable to find one available in national dealer inventory. The existing unit has experienced total failure, and has been removed from service, thus leaving the Parks Department without a much needed service vehicle. In order to provide a replacement as quickly as possible the vendor has located, and made available, a similar unit. Although identical in all other aspects, this vehicle is diesel-powered. As this variation would be a significant deviation from the existing contract, procurement cannot be done through that contact. Therefore staff is recommending that the proposed unit be purchased through cooperative use of an existing Arizona State Procurement Office contract. Staff review of pricing available through this contract indicates vehicle price is reasonable and review of pricing for the up-fit components are as allowed under the contract and are also reasonable and consistent with those proposed under the City’s previous contract.

The amount requested for the Ford F450 Crew Cab 2 Ton Dump truck is $$52,947. Funding of $55,000 is available in the Vehicle Replacement FY 2016 budget, account 404-41-402-100-8502, project number 16028.
 
City Clerk Miller read by title only Ordinance No. 2964, accepting a bid from PFVT Motors, Inc. for the purchase of a 2016 Ford F-450 Dump Truck; authorizing the expenditure of public funds in an amount not to exceed $52,947.00; and authorizing execution of a contract with, or purchase order to, PFVT Motors, Inc. in accordance with the terms submitted to the Arizona State Bid List.
 
Council Member Varela moved for passage of Ordinance No. 2964.  Council Member Herman seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Ordinance No. 2964 passed to a second reading.
             
J.   Boards & Commissions

None
 
             
K.   Ordinances, Resolutions, and Other matters or Subjects Requiring Action by the Council  
             
  K.1   
Resolution No. 4978
Matching Funds Payable to the Sun Corridor Metropolitan Planning Organization
As Part of the Arizona Department of Transportation (ADOT)
Grant Award for the Creation of a Transit Development Plan

 
Public Works Director Louis recommended that Mayor and Council approve the $40,000 city match to the $200,000 ADOT study grant for study of potential alternatives for the creation of a Transit Development Plan.

Director Louis reported that as was discussed in the study session before Council on May 2nd of this year, the  Sun Corridor Metropolitan Planning Organization (SCMPO) requested and was awarded a grant from the Arizona Department of Transportation (ADOT) for this project. This grant consists of $160,000 in federal aid funds,  and requires a match of $40,000 of city funds. The intent of this project is to conduct a transit development study and prepare a transit development plan for the City of Casa Grande.  A previous transit planning study was completed in 2008 and will be used as foundational basis for the proposed Casa Grande Transit Development Plan.  The precedent study shall be expanded upon to study the potential for and viability of a transit system that can meet the transit demands of the current development of the City of Casa Grande and provide for future regional connectivity.  The transit plan study efforts will also include public outreach and involvement with the general public, businesses, interest groups, and involved government agencies.
 
The City’s matching funds of $40,000 will come out of existing city funds currently earmarked for the SCMPO.
DISCUSSION

Council Member Kortsen requested for the purposes of the public who are not familiar with the Sun Corridor Metropolitan Planning Organization (SCMPO) that Staff briefly explains how the funds are going to be utilized.
 
Duane Eitel, City Traffic/Transportation Engineer conveyed that the overall cost for the project is $200,000.  The grant of $160,000 is federal aid funds from Arizona Department of Transportation and it requires a match of $40,000 from City funds.  The intent of the project is to conduct a transit development study and prepare a transit development plan for the City of Casa Grande.  The process includes extensive public involvement.  The consultant will be working with the public to see where they want to go should the City acquire a transit system; will work with the businesses to find out their interest in the transit system; and on-line public involvement.
 
Further, Mr. Eitel conveyed that in the future should the City decide to move forward there will be about $850,000 of federal transit money available a year.  This will help fund a transit system should the study show there is a need, if the City Council determines the study makes sense and if it’s the right thing to do.
 
Council Member Fitzgibbons hopes that when conducting community outreaches all the neighborhoods that may not normally attend the meeting are made aware of the public input solicitation.  Further, Council Member Fitzgibbons suggested conducting a presentation that would target the Spanish speaking community and the general population.
 
Council Member Powell conveyed that the study will be excellent to conduct and believes that the study will also prove that the City will be wasting an awful lot of money trying to run a bus.   Council Member Powell thinks that there will be other subjects to study. Transit would definitely be valuable to the City; however, it requires huge subsidies and it’s probably not the time in our history of Casa Grande to spend a lot of funding on this type of project.
 
Council Member Varela announced his support for the transit study.  It will be a way to be creative about transit and believes that this is a need in the community which is long overdue.
 
Council Member Kortsen concurs with Council Member Varela’s comment and believes that transit is not just buses and she looks forward to the study to determine what the community needs.
 
Council Member Powell announced that he is glad about conducting a transit study.  He also believes that the study will determine other ways Council can embellish transit in the area.

City Clerk Miller read by title only Resolution No. 4978, authorizing City match funds in the amount of $40,000.00 payable to the Sun Corridor Metropolitan Planning Organization, as part of the Arizona Department of Transportation (ADOT) Grant Award for the Creation of a Transit Development Plan; authorizing the City Finance Director to disburse funds as necessary; and authorizing the transfer of budget authority.

Council Member Fitzgibbons moved for passage of Resolution No. 4978.  Council Member Kortsen seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Resolution No. 4978 passed and adopted.
             
  K.2   
Resolution No. 4979
Intergovernmental Agreement (IGA) with Pinal County
for the Purpose of Establishing Modern and Reliable Radio Communication Systems

 
Communications Manager Brashier recommended that Mayor and Council authorize the City Manager to enter into a Intergovernmental Agreement (IGA) with Pinal County for radio communication systems.

Mr. Brashier reported that the purpose of this IGA is to fulfill the need for establishing modern and reliable radio communication systems for Pinal County and the City.  This IGA will allow the City use of existing and future Pinal County communication sites and will allow Pinal County to use existing and future City sites.  The sharing of sites will enhance the communication systems of both parties.  There also could be some grant opportunities once this IGA is in place.

This IGA includes all Pinal County and City sites where space and technical parameters allow non-interferring operation, between existing services and any future services proposed by Pinal County or the City.  Pinal County and the City will enter into site specific supplemental agreements that will be reviewed annually and updated by the Pinal County IT/Public Safety Manager and the City Communications Manager.

This agreement is similar to the agreement that the Mayor and Council approved in 2012 between Arizona Department of Public Safety.

There are no costs associated with this agreement.  Costs of engineering and maintenance of the required radio communications systems will be the responsibility of the benefiting agency at each site.

Each agency could research additional locations with potential monthly rental fees for sites as needed.  Submit an RCA anytime Pinal County would like to move equipment from one site to another owned by the City or when the City would like to add equipment at one of the Pinal County sites.
 
City Clerk Miller read by title only Resolution No. 4979, authorizing the execution of an Intergovernmental Agreement between Pinal County and the City of Casa Grande for the purpose of Establishing Modern and Reliable Radio Communication Systems to be used by both agencies.

Council Member Powell moved for passage of Resolution No. 4979.  Council Member Kortsen seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Resolution No. 4979 passed and adopted.
             
  K.3   
Resolution No. 4980
Adopting the Fiscal Year 2016-2017 City's Tentative Budget


Budget Analyst Jeffrey Graves highlighted the below information as appeared in his Request for Council Action form.

Approve a resolution adopting the FY2017 Tentative Budget in the amount of $174,235,700.

The budget development process began in January 2016 with departments presenting their budgets to the Finance Director and City Management. Based on recent trends, conservative revenue and expenditure estimates have been utilized resulting in a budget which is comparable to last fiscal year, yet still addresses the changing operational and capital needs of the City.
 
As presented to the council in a work session, the tentative budget focuses almost exclusively on maintaining current operations and one-time capital expenses which meet councils adopted priorities and legal mandates. The attached state budget forms represent all of the information that has been presented to the Council and, once approved, will be the adopted tentative budget for FY2017. The required forms shall be published twice in the local paper as well as on the internet and council will be asked to adopt them as Final on June 20, 2016. Adoption of the Tentative budget establishes the expenditure limitation for the fiscal year, the final budget may be adopted at a lesser amount but may not be increased above the limit established by this action.
 
A review of the budget will be presented during the meeting and will include an overview of all modifications from the FY2017 proposed budget reviewed at the May 4th council study session.

Adoption of the Budget establishes the spending plan for the following fiscal year. No expenditure of funds may take place that is not in conformance with the adopted budget.
 
DISCUSSION

In response to Council Member Varela, Deputy City Manager Rains explained that after the council budget retreat, discussions were held internally with the Staff and ultimately elected adding $25,000 to the code enforcement budget.  At this time, the fund was placed primarily in the lien abatement line item to provide flexibility to move into the fiscal year.
 
Council Member Herman expressed appreciation to the Finance Staff for their hard work and making the budget presentation understandable for everyone.

City Clerk Miller read by title only Resolution No. 4980, adopting the tentative estimates of the amount required for the public expense for the City of Casa Grande for the Fiscal Year 2016-2017; Adopting a tentative Budget setting forth the receipts and expenditures, the amounts actually levied, and the amounts estimated as collectible for the previous fiscal year and the amount proposed to be raised by direct property taxation for the various purposes; and giving notice of the time for hearing taxpayers for adopting of budget and for fixing the tax levies.

Council Member Kortsen moved for passage of Resolution No. 4980.  Mayor Pro Tempore Montoya seconded the motion and the following roll call vote was recorded:
 
 
AYE: Council Member Ralph Varela
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Karl Montoya
  Mayor Robert Jackson
  Mayor Jackson then declared Resolution No. 4980 passed and adopted.
             
L.   Public Meetings, Public Hearings, Open Record Reviews, and Closed Record Reviews  
             
  L.1   
Public Hearing on the Proposed Increases to
Water and Wastewater Rates for FY2017

 
Accounting Manager Morris recommended that Mayor and Council hold a public Hearing on the proposed water and wastewater rates in accordance with ARS 9-511.01 these increases are proposed to become effective August 1, 2016.

Mrs. Morris reported that the City of Casa Grande Water and Wastewater services are 100% user fee funded. The rates to provide this funding are reviewed annually to ensure the revenue is sufficient to pay for all expenditures of the funds. On May 1st council adopted a Notice of Intent (NOI) to increase Water and Wastewater rates. Following the adoption of the NOI this public hearing was advertised in the paper, on our website and posted at various City facilities along with the corresponding Water and Wastewater Rate reports. In addition a public information flyer was emailed to every customer of the two systems for which we have email addresses announcing the proposed rate increase, the workshop held on May 16th and this public hearing. Following the council work session on May 16th a revised informational flyer announcing this public hearing as well the June 20th meeting where rates will be considered for adoption was also mailed and e-mailed to every Water, Wastewater and Sanitation customer.  These flyers were also posted on the website and in the Finance Department letting customers know of the discussed revision lowering the proposed increase to match the amount included in the budget. Copies of the fee reports and these public notices are included in the agenda packet.
 
Wastewater:
The main driver of the rate increase for wastewater is the requirement to repay the debt for the wastewater treatment plant expansion and the legal requirement to maintain one year of debt service in reserve. At the time the expansion was planned, it was assumed that growth would pay more than 50% of the debt service based on the construction costs for new capacity in relation to upgrading existing systems. Growth has not maintained the rate anticipated and the Operating Fund is required to make up the difference under the terms of the loan agreement with the Water Infrastructure Financing Authority. Although established as a loan there is no anticipation that the rate of growth will increase to the point that this loan may be repaid from Impact Fees generated in the near future.
 
Based on current projections additional rate increases will be required on an annual basis to maintain operations, provide for limited capital infrastructure investment and cover existing debt service. Based on current projections the wastewater fund is utilizing existing savings to offset ongoing expenditures as rate increases are phased in over the five-year period. Not until FY2019 are annual revenues sufficient to cover annual expenditures. In developing the proposed rate maintaining required debt service reserves and vehicle/equipment reserves is a critical component. Based on the fact that the revised fee proposal will have either the general fund be responsible for providing sufficient debt coverage or approach WIFA to waive this requirement, the proposed reduction in rates is financially feasible.
 
Water:
The main driver of the rate increase for water is operational requirements associated with federal mandates regarding Nitrate removal. Ongoing capital repairs to the system are projected to be $50,000 - $200,000 annually with corresponding increases in operational expenses related to federally mandated Nitrate removal. Any increase to this projection will have a substantial impact on the required level of rates. Based on current projections additional rate increases will be required on an annual basis to maintain operations and cover existing debt service. Based on current projections the water fund is utilizing existing savings to offset ongoing expenditures as rate increases are phased in over the five-year period. Beginning in FY2020 annual revenues will be sufficient to cover annual expenditures. In developing the proposed rate maintaining some level of fund balance is a critical component, with the proposed rates for the water fund the fund balance does not fall below an acceptable standard to handle system emergencies.

The FY2017 budget has been prepared utilizing the fee amounts included in the attached documents. Modifications to any specific fee or rate may have a direct impact on revenue collections and the provision of a particular service. Actual adoption of the rates will occur with the consolidated fee schedule on June 20th.  The rates in the attached reports reflect those that were originally proposed and advertised. In the consolidated fee schedule the rate increase for wastewater will reflect any revisions.
 
Mayor Jackson called for public hearing to allow comments on this matter.
 
Autry Warren of 33841 W. Siesta, Stanfield AZ 85172 offered comments concerning the water problems at her property.  Ms. Warren indicated that she does not mind paying the proposed fee increase as long as the City fixes the lead/contaminated problem in the water supply at their subdivision. 
 
In response to Mayor Jackson, Deputy City Manager Rains conveyed that the proposed rate increase is to cover the cost associated with the operations of that nitrate system.  The council approved the capital cost of the nitrate system and is moving forward with the project.  These additional increases are primarily to finalize the project as well as to continue the on-going operational cost to resolve the nitrate issue.
 
In response to Mayor Jackson, Director Louis conveyed that he will have to review the project timeline to provide the exact completion date to resolve the nitrate issue.  Arizona Department of Environmental Quality (ADEQ) with their latest consent order that was amended; has given the City 18 to 24 months to complete the project.
 
Further, Public Works Director Louis announced that Ms. Warren was describing a lead issue which was confirmed as lead exceedance in several of the samples that was taken in their subdivision.  City Staff is currently following the entire increased testing requirements to go through the process of determining where and if we have any lead issues.  Staff believes it was a sampling error and it was not a lead pipe issue; however, Staff has to go through the entire process no matter what, due to initial exceedances which the process could take about 2 years.
 
Mayor Jackson requested for Public Works Director Louis and Deputy City Manager to follow up with Ms. Warren.
 
Louanne Doody of 69 S. Agua Fria Lane, Casa Grande AZ 85194 located at Mission Royale subdivision, offered comments on behalf of fixed income families.  They have no problem with the increase in the water rate; however, would like to make a proposal for the sanitation department.  Rather than making an increase to the sanitation rates, is it possible to go into a 1-day a week pick up for both recycle and trash at the 55+ active adult communities in Casa Grande?  Many of the residents in this community are not there year round and do not produce as much trash that would require 2-day a week trash pick-up.  There could be savings by not running those trucks in the 55+ communities twice a week.
 
Mayor Jackson explained that there is a State Law in Arizona that requires the twice a week trash pick-up.  The City is looking into doing a once a week trash pick-up; however, it requires a waiver from the State in order to make this change.
 
Council Member Kortsen suggested looking at providing an exception to the rule for the 55+ active adult neighborhoods.
 
David Adams of 1697 E. Irene Court, Casa Grande AZ 85122 offered his concern and frustration to the excessive yearly increase in fees in the wastewater/sanitation rates and the lack of operating efficiency.
 
There being no further comments, Mayor Jackson declared the public hearing closed.
 
             
M.   Executive Session:  
             
  M.1    Council Member Kortsen moved to hold an executive session for the below item:

A.R.S. §38-431.03.

A. Upon a public majority vote of the members constituting a quorum, a public body may hold an executive session but only for the following purposes:
  
3.  Discussion or consultation for legal advice with the city attorney or attorneys of the public body.
4.  Discussion or consultation with the attorneys of the public body in order to consider its position and instruct its attorneys regarding the public body's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation or in settlement discussions conducted in order to avoid or resolve litigation. 
  • Obtain Legal Advice and Consider Option Concerning the Contract with LCRR, LLC for the Acquisition of Real Property Located in the Casa Grande Mountain Area (40 acres, more or less). 
7.   Discussion or consultation with designated representatives of the public body in order to consider its position and instruction it representatives regarding negotiations for the purchase or lease of real property. 
  • Acquisition of Property

Mayor Pro Tempore Montoya seconded the motion and was carried with a 7-0 voice vote.
 
             
N.   Reports

Council Member Varela reported on the following:
  • Shared an article from the Arizona Republic about the reading program for the summer and glad to see that the City Libraries news blast on some of the reading programs that are comprehensive.Parents and young children should take advantage of this opportunity.
  • Attended the Memorial Day celebration and announced to recognize the names of fallen heroes that were honored during this event.
Council Member Herman reported on the following:
  • Thanked the citizens that attended tonight’s meeting and for those who offered their comments on the proposed water and wastewater rates.
  • Announced to congratulate off-duty firefighter Jacob Celaya for saving someone from drowning.Mr. Celaya represents our city well.
  • Participated in the interview panel for the members of Casa Grande Youth Commission FY2016-2017.There were a lot of applicants this year that were very interested to serve on the commission.
Council Member Powell reported the following:
  • Attended along with Kevin Louis and David Snider the meeting of Central Arizona Project (CAP) water issues; provide reading materials to the City Council; and shared some highlights of the probability on water shortages by 2018.
Council Member Fitzgibbons reported on the following:
  • Expressed appreciation to the feedback citizens offered tonight and explain that everyone is affected on the proposed rate increases at the same time council is trying and working diligently on this effort.
  • Announced that the Latino Familia Initiative is partnering with the Arizona Humanities Commission to provide a “Free” Event – Latino Americans: 500 Years of History Film Screening in Casa Grande on Wednesday, June 8, 2016 from 6:30 to 8:30 p.m. at the historic Paramount Theater.
Council Member Kortsen reported on the following:
  • Attending the award luncheon of Union Pacific Railroad where Main Street received grant funding of $3,500 to fund the monthly main street program.
  • Glad to hear the appointment of new members to the City’s Airport Advisory Board.
  • Offered opinion of having two family members serving the City’s Airport Advisory Board.
Mayor Pro Tempore Montoya reported the following:
  • Attended the Memorial Day celebration.Thanked David Snider for emceeing the event and all the volunteers that makes this event successful.
  • Kudos to the Casa Grande Youth Commission and the interview panel for their hard work in interviewing and selecting the reappointment and appointment of new members for FY2016-17.
Mayor Jackson reported on the following:
  • Announced that he and Deputy City Manager Rains will be attending the all-day retreat for Access Arizona, scheduled for Thursday, June 9th.
  • Reminded the City Council of the Chamber of Commerce Breakfast Event with the businesses in town, scheduled for June 14th at 7:30 a.m. at the Chamber Office.
 
             
O.   Adjournment

There being no further business at this time, the meeting adjourned at 8:47 p.m.
 
 
  ________________________
Robert M. Jackson
Mayor
ATTEST:


 
 
___________________________
Remilie S. Miller, MMC
City Clerk
 

CERTIFICATION

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the City Council of Casa Grande, Arizona held on the 6th day of June 2016. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 20th day of June, 2016



_______________________________
Remilie S. Miller, MMC
City Clerk

    

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