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MINUTES OF THE SPECIAL 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 26, 2017
 
             
A.   Call to Order
Mayor McFarland call the meeting to order at 7:00 p.m.
 
             
B.   Roll Call  
Present:
Donna McBride, Council Member  
 
Lisa Fitzgibbons, Council Member  
 
Matthew Herman, Council Member  
 
Mary Kortsen, Council Member  
 
Dick Powell, Council Member  
 
Ralph Varela, Mayor Pro Tempore  
 
Craig McFarland, Mayor  
Also Present:
Larry Rains, City Manager
Steven Weaver, Deputy City Manager
Brett Wallace, City Attorney
Gloria Leija, City Clerk
Terrence McKeon, Deputy Public Works Director
             
C.   Consent Agenda
All items listed with an asterisk (*) are considered routine matters and will be enacted by one motion and one roll call vote of the Council. There will be no separate discussion of these items unless a Council Member or member of the public so requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence of the agenda.
 
  Moved by Council Member Lisa Fitzgibbons, seconded by Council Member Matthew Herman to approve the Consent Agenda for items C1, C2 and C3. The following roll call vote was recorded:
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
Other: Council Member Dick Powell (ABSENT)
             
  *C.1   
Final Adoption of Ordinance No. 3017
Conditionally Accepting Dedication of Public Right-of-Ways and Easements for Utilities for Roy Dawson

 
  By a 6-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3017, conditionally accepting Dedication of Public Right-of-Ways and Easements for Utilities for Roy Dawson.
             
  *C.2   
Final Adoption of Ordinance No. 3018
Accepting the Proposal for Services from Vertech Industrial Systems, LLC

 
  By a 6-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 3018, accepting the proposal for services from Vertech Industrial Systems, LLC; authorizing expenditure of public funds in an amount not to exceed $223,867.98; and authorizing the execution of a contract.
             
  *C.3   
Consider the Final Adoption of Ordinance No. 1178.191.2
Approving a Major Amendment to Villago Planned Area Development (PAD) Adopted for Property Located South of Val Vista Boulevard, North of McCartney Road and East of Pinal Avenue, Casa Grande, Arizona

 
  By a 6-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 1178.191.2, accepting the proposal for construction manager at risk services from Haydon Building Corporation to provide construction services; authorizing expenditure of public funds in an amount not to exceed $1,419,088.00; and authorizing the execution of a contract.
             
D.   New Business:  
             
  D.1   
Consider Ordinance No. 3019
Approving the Basic Alignment of the East Side Sewer Expansion Project

 
  Terrence McKeon, Deputy Public Works Director, highlighted the below information.

Construction of the East Side Sewer Expansion Project requires acquisition of rights-of-way and easements across private properties to provide for the construction, operation, and maintenance of the proposed large-diameter sewer to provide expanded service to the area east of the I-10 interstate. The proposed alignment for the sewer pipeline calls for the line to cross I-10 within the Kortsen/Kleck alignment, continue east to Hacienda, then south to Cottonwood, then east to Toltec Buttes. This action also provides for the acquisition of rights-of-way by map of dedication only along Cottonwood and Mission Parkway to provide for the construction and operation of a 24” diameter water main which will provide water service to this area as well. Although it is being constructed by a private developer, this line will ultimately be owned and operated by Arizona Water Company (AWC.) In discussions with AWC, they have stated that their policy is to require construction of new waterlines to be within rights-of-way, rather than easements, whenever possible. In discussions with the landowners, they have indicated a preference to grant appropriate rights-of-way to the City rather than easements to another party. It should be noted that lands to be acquired through these actions are already encumbered by existing roadways. In 1964 the Pinal County Board of Supervisors issued a “Declaration of Road” which declared a thirty-three foot roadway along all section lines. The proposed alignment for this pipeline is along roadways which are on section-lines covered in that declaration. Staff has been in discussions and negotiations with each of the landowners of the parcels upon which rights-of-way or easements are required. To date each landowner has been very cooperative and have been willing to discuss dedication of the property to the City. In lieu of compensation the parties have discussed that, where practical, sewer stubs will be constructed to provide for future connection to each parcel along the sewer alignment. These stubs have been included in the construction plans in locations as requested by landowners in accordance with planning documents provided by their Planning & Engineering firm. It is intended that in the future, when these properties develop and require sewer service, they would then pay applicable impact and connection fees as would be typical for any development project. There has been no agreement for capacity reservation to be provided to any of these properties. The proposed alignment for the water and sewer lines has been designed to minimize any impacts to existing conditions or operations upon the subject parcels. As has been noted landowners have been willing to provide dedications with no direct payment, however there is one property upon which an impact may be unavoidable, as the land is currently being farmed and the impact to the property extends beyond the area already encumbered by the roadway dedication. It is the intent of Staff to negotiate with that landowner to minimize the impacts which construction may have upon his operations, however a limited loss of crops may be unavoidable. As reimbursement for these losses may be necessary, staff is requesting a contingency be granted should payment be necessary to cover such costs. Negotiations with affected landowners have been ongoing for some time, and are nearly complete. It is anticipated that an amicable agreement will be reached with each party, however Staff recommends that the City Manager be authorized to pursue condemnation actions should it be deemed necessary to maintain the proposed project schedule.

With respect to the property related to the new proposed waterline, similar discussions have been taking place related to the dedication of the right-of-way in exchange for water tie-ins by the developer of the line.  Because the waterline will be owned by Arizona Water Company, staff is only requesting the authority to obtain dedications of the property at no cost to the City and is not seeking condemnation authority for the right-of-way at this time. 

Staff is seeking approval of two Ordinances by the Mayor and Council as part of this Request for Council Action.  The first would approve the siting of the sewer line and seeks approval to obtain maps of dedication, purchase property if warranted, and condemn property as needed in the unlikely event staff cannot negotiate an amicable means of acquiring the property.  The second Ordinance would seek approval to obtain maps of dedication for the right-of-way related to the roadway necessary for the proposed waterline.  This would not authorize the City to make payment or condemn the property at this time.

Discussion:

Council Member Herman expressed concern with the proposed Ordinance containing a clause for condemnation. He doesn't support condemning personal property, and would like the City to try to avoid this process.  He asked if action regarding condemnation would require Council's approval.

In response to Council Member Herman, City Attorney Wallace, stated that the City does not want to condemn personal property.  If it's needed, the proposed ordinance contains a provision that provides authorization for condemnation.  As in any project, the City will do everything possible to reach agreements with the property owners.  However, if there is one owner that the City cannot reach an agreement with - either by dedication or purchase, staff will need this authority to move forward with condemnation in order to complete this project.  With this project, he doesn't foresee the City needing the authority for condemnation, because staff has been engaged with the landowners for several months.  He noted that timing is also important for this project.  If the construction company is ready to start the project and there is one property owner that doesn't want to dedicate or sale their property, then the construction company would not be permitted to start the project without access to all of the properties.  Council can elect not to authorize the condemnation process at this time.  However, if staff needs to return to Council to start the condemnation process, the project could be delayed by three months.  Relating to other projects that required condemnation, he stated that the Gila Bend sewer project required staff utilize the condemnation process.

City Attorney Wallace informed Council that a second ordinance for acquisition of rights-of-way and temporary construction easements along Mission Parkway and Cottonwood Lane East of Interstate 10, is also necessary.  However, the Ordinance was not posted for this meeting.  Therefore, it will appear before Council at the next regular meeting.

Council Member Fitzgibbons expressed that she concurred with Council Member Herman's comments relating to condemnation authority.  She voiced that she trusts staff, but if the City needs to proceed with the condemnation process, she believes that Council should approve the condemnation process, even if it requires Council to hold a special meeting to consider condemnation of specific property.  She asked that the City Attorney explain the timeline for getting approval to proceed with a condemnation.

Responding to Council Member Fitzgibbons, City Attorney Wallace stated that authorization for a condemnation could be done in a regular or special Council meeting.  He outlined the below process/timeline for Council to consider a condemnation process:
  • Scheduling the condemnation to appear before Council, requires staff to submit the item three weeks in advance
  • First reading of the Ordinance
  • Second reading of the Ordinance, two weeks later
  • 30-day waiting period before the Ordinance becomes effective
City Attorney Wallace stated that Council could consider approving the ordinance with an emergency clause.  However, the City tries not to approve condemnation ordinances with an emergency clause, because it takes away the referendum process rights from the people. 

In response to Council Member Fitzgibbons, City Attorney Wallace stated the only time that he can recall that the City had to use the condemnation process was with the Cottonwood Lane project.

Council Member Kortsen voiced that she does not see this project as a Phoenix Mart project, rather as an Eastside Casa Grande project which is needed for the community.  She asked City Attorney Wallace how quickly Council could approve a condemnation process, and what would be the cost associated with the process.

Replying to Council Member Kortsen, City Attorney Wallace stated with a special meeting, if necessary, Council could approve a condemnation process in 35-38 days.  However, the cost associated with the project, if condemnation is required, would depend on what actions Council has taken.  If Council approves an agreement with Haydon Construction tonight, then Council finds it necessary to approve a condemnation, the City would be in a bad spot, because Hayden would need to stop the project until all right of ways are obtained.  It could be costly to the City.  He would recommend that Council wait until the City is able to obtain the necessary right-of-ways for this project, before approving the agreement with Haydon Building Corporation.  The condemnation authorization can be removed from the proposed ordinance being considered tonight.

Responding to Council Member Varela, City Attorney Wallace stated that he understands all of the property owners (19) have received this project in a positive manner.  The owners that are dedicating property for this project will be getting sewer stub outs that will be ready to go, which will drastically reduce their cost to tie into the sewer.  

City Manager Rains voiced that there are two different groups.  One group consists of property owners to the eastside that are represented by legal counsel.  The City is communicating very well with this group.  There are several property owners that are near the Interstate.  With these property owners the city will be asking them to sign easements - rather than a dedication of right-of-way.  He believes all of the property owners have expressed a desire to move forward with this project, and he is not aware of any landowners that has expressed opposition to the project. 

Council Member Varela expressed if necessary, he believes there is value in having Council approve, as a separate item, any condemnation process needed for this project.

Deputy Public Works Director McKeon voiced that approval of the Haydon Construction contract will only affect two property owners; NW corner property owner and property owners on the NE corner.  One property owner has stated support for the project.  However, the other is a local farmer, which will be impacted by the construction.  Staff has met with this property owner.  The owner is concerned with timing of the construction; e.g., how it will impact his farming operations and how the City will reimburse him for his loss of property.  This property owner is the only property owner of the entire alignment that will be impacted.  He does not anticipate any issues with this landowner.

Further, Deputy Public Works Director McKeon stated that staff will not issue a notice to proceed to Haydon Construction until September 2017.  If the City needs to take the condemnation process, he believes there will be sufficient time.

City Manager Rains stated in this project, staff is cognizant of the stipulation in the development agreement with AZ Sourcing/Phoenix Mart to complete the City's portion of the sewer line in 18 months, and AZ Sourcing has to complete their portion within 24 months.  If Council elects to approve the Ordinance with the condemnation clause, he voiced that he would notify Council immediately if staff anticipated the need to move forward with the condemnation process.

Council Member Powell voiced support for compensating property owners for property loss or damage related to this project.  He also believes, if needed, Council should approve separately any action for condemnation.  However, he believes staff will be able to work with the property owners to obtain the necessary property rights for this project.

Council Member Herman expressed his support for eastside sewer project which will benefit the entire community.  But, he is not favor of approving the condemnation clause in the proposed ordinance.  If condemnation is required for this project, he would prefer that Council address this approval separately. 

Council Member McBride voiced that the condemnation clause is not needed at this time. If Council approved the condemnation clause tonight, it would give a bad public perception.   If the condemnation is needed in the future, she would prefer to address the condemnation separately at another meeting. 

Mayor McFarland stated he is concerned with not approving the Ordinance tonight with the condemnation clause, because it may delay the City's part of completing the sewer line on time.  He noted that delays in completing the project could affect the overall cost of the project.

Responding to Mayor McFarland, City Manager Rains stated that he is hopeful that the City can obtain the necessary property rights to move forward with the sewer line project.  If Staff needs to return to Council to get approval for a condemnation, it may affect the City's 18-month timeline to complete the project.  He is hopeful that staff can negotiate the property rights with the owners.

Responding to Mayor McFarland, City Attorney Wallace stated if the City is successful in getting all of the right of ways voluntarily, then the project will not be affected.  Council can move forward with approving the Haydon contract, but there may be a little risk with the approval.  If Staff is not able to get all of the right of ways, then the City will not be able to issue the notice to proceed to Haydon which may impact their cost.  He would not recommended that Staff bring back condemnation requests on a case by case base, because the idea of filling 16 more condemnation actions, one without the other, would affect the outcome, because it would be difficult to prove the necessity of needing the one piece of property.  If the City has other pieces that were not acquired voluntarily, and the City does not have the ability to condemn the other pieces, then the City loses the condemnation action because it becomes very easy to say that the City doesn't need the one property because the City doesn't have other properties.    Ultimately, if needed, Staff would be requesting that Council approve as a blank condemnation process for all property that the City has not received maps of dedications.

Responding to Mayor McFarland, Deputy Public Works Director McKeon stated that he does not believe staff can obtain the maps of dedication from the two property owners for this project in three weeks, because one piece of property is owned by a corporate entity that is located in Canada. 

Relating to the issuance of the contract to Haydon Construction for the sewer project, City Manager Rains stated that staff can wait to issue the order to proceed.  However, the issue will be how long Haydon Construction can maintain their guaranteed maximum price before it changes. 

City Clerk Leija read by title only Ordinance No. 3019, approving the basic alignment of the east side sewer expansion project; authorizing the acquisition of rights-of-way, public utility (sewer) easements and temporary construction easements for the east side sewer expansion project; authorizing execution of acquisition documentation by the City Manager or his designee; and authorizing the initiation of any condemnation actions necessary for the project.
  Moved by Council Member Lisa Fitzgibbons, seconded by Council Member Matthew Herman to approve Ordinance No. 3019 with the below amendments:
  • Remove from the title of the Ordinance "and authorizing the initiation of any condemnation actions necessary for the project"
  • Remove from the Ordinance, Section 4. Authorization to Acquire Property by Eminent Domain.
    Notwithstanding Section 3 of this Ordinance, the City Attorney is hereby authorized and directed to commence condemnation (eminent domain) proceedings to acquire, in the name of the City of Casa Grande, the real property interests needed to complete the Project and to secure immediate possession of such real property, for the public purpose of construction of the East Side Sewer Expansion Project, and is further directed to do and perform all acts necessary in furtherance of the acquisition of title to and immediate possession of said real property.
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
             
  D.2   
Consider Resolution No. 5051
Accepting the Proposal for Professional Services from HilgartWilson, LLC to Provide Professional Survey Services

 
  Terrence McKeon, Deputy Public Works Director, reported that construction of the East Side Sewer Expansion Project requires acquisition of rights-of-way and easements across private properties to provide for the construction, operation, and maintenance of the proposed large-diameter sewer to provide expanded service to the area east of the I-10. The proposed alignment for the sewer pipeline calls for the line to cross I-10 within the Kortsen/Kleck alignment, continue east to Hacienda, then south to Cottonwood, then east to Toltec Buttes. This contract is to provide the engineering and survey services required to create the documents necessary for dedication of easements and rights-of-way as required for this project. Tasks to be performed includes a field-survey, drafting of legal-descriptions, and creation of a number of Maps of Dedication as necessary for recordation of acquisitions from each of the landowners associated with this project. The firm of HilgartWilson, L.L.C. was selected for this project based upon their qualifications, which have been demonstrated in other similar projects for the City. Furthermore their relationship with, and work performed for, the majority of the landowners involved in this project provides for enhanced trust and confidence among all parties involved.

City Clerk Leija read by title only Resolution No. 5051, accepting the proposal for professional services from HilgartWilson, LLC to provide professional survey services; authorizing expenditure of public funds in an amount not to exceed $49,999.99; and authorizing the execution of a contract.
  Moved by Council Member Matthew Herman, seconded by Council Member Dick Powell  to adopt Resolution No. 5051
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Resolution No. 5051 pass and adopted.
             
  D.3   
Consider Ordinance No. 3020
Accepting the Proposal for Construction Manager at Risk Services from Haydon Building Corporation to Provide Construction Services

 
  Terrence McKeon, Deputy Public Works Director, reviewed the below information.

East of the I-10 freeway the City’s sewer collection network currently serves a very limited area. The East Area Sewer Expansion Project (EASE) is intended to provide expanded sewer service to a significant portion of the area east of I-10. Under the EASE project, approximately 21,200 linear feet of large diameter gravity sewer pipeline is proposed to be constructed. In accordance with the current Development Agreement between the City and AZ Sourcing (AZS), the developer of the Phoenix Mart project, AZS has procured the engineering and design services for this project. The design is completed, and permitting and construction is being closely coordinated with the City’s Engineering division. Under the terms of this agreement, the City is to construct the initial phase of the project. This phase provides for the construction of a 36” diameter gravity sewer line crossing I-10 along the Kortsen/Kleck alignment. The remainder of the project is to be constructed by AZS in accordance with the sewer agreement with the City. Execution of this contract will provide construction services for this initial phase of the project.

Under the previously approved pre-construction services contract, Haydon has participated in and coordinated with the efforts of the design team throughout the design phase. Services provided included detailed soils investigation, utility potholing, material selection, cost estimating, detailed site and construction investigations and analyses, and value engineering.

To procure the construction services required for this project, a qualifications-based solicitation for the services of a Construction Manager at Risk (CMAR) was published by the City. In response to the advertisement, six (6) firms submitted statements of qualifications (SOQ) in accordance with the request for qualifications. Each of these were reviewed by members of an appropriate selection committee. After review of the SOQs, three firms were placed on a short-list, and each of those firms were interviewed by the committee. Based on the total scoring of SOQs and interviews, Haydon Building Corporation (HBC) was the highest ranked firm, thus was selected to provide CMAR services for this project. At the end of the pre-construction phase, the contractor solicited final bids from pre-qualified subcontractors and vendors; this pricing was then used in negotiating the guaranteed maximum price for construction.

Discussion:

City Manager Rains stated that earlier he had recommended that Council table awarding the contract to Haydon Corporation, until all of the right of ways have been secured for the east area sewer expansion project.  However, he understands from Terrence McKeon, Deputy Public Works Director, that Haydon's representative need approval of the contract so they can start the planning process.  Staff should have a better idea on the status of the right of ways by Council's next meeting on July 17, 2017.

Deputy Public Works McKeon stated that Haydon representatives have been extremely patient and have also wanted to pursue the project, even after the scope of the project was reduced.  He does not foresee any problems with Haydon Corporation.  The City has a great relationship with Haydon's representatives.

Council Member Herman voiced that he is comfortable approving the contract with Haydon Corporation, because he had confidence in staff.  He is very pleased with the project cost being reduced from $10,000,000 to 1,400,000.

Council Member Powell noted that he believes the City had some issues with the Francisco Grande construction project, and would like to see an independent inspector/construction manager at risk for the project.

Responding to Council Member Powell, Deputy Public Works McKeon stated that Construction Manager at Risk is a project delivery method. The "At Risk" component speaks to the fact that in many projects construction plans are completely finalized and risks have been identified.  Therefore, the contractor assumes the risk. Haydon will be responsible for construction manager at risk services.  A third party, Sunrise Engineering, will act as a third party inspector for the project.  If issues arise with the construction, Sunrise Engineering will have the authority to call him and he will be able to close down the Haydon, until the issues can be resolved.
  Moved by Mayor Pro Tempore Ralph Varela, seconded by Council Member Mary Kortsen to adopt Ordinance No. 3020
 
AYE: Council Member Donna McBride
  Council Member Lisa Fitzgibbons
  Council Member Matthew Herman
  Council Member Mary Kortsen
  Council Member Dick Powell
  Mayor Pro Tempore Ralph Varela
  Mayor Craig McFarland
  Mayor McFarland declared Ordinance No. 3020, passed to a second reading.
             
E.   Executive Session  
             
  E.1    A.R.S. §38-431.03.
 
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.
 
  • Discussion and Consultation Regarding a Proposed Development Agreement with Pending Economic Development Prospects
Moved by Council Member Fitzgibbons, seconded by Mayor Pro Tempore Varela, to hold  an executive session as requested above. The motion carried with a 7-0 voice vote.
 
             
F.   Public Comments

None
 
             
G.   Adjournment
Moved by Mayor Pro Tempore Varela, seconded by Council Member McBride to adjourn the meeting at approximately 9:00 p.m. The motion carried with a 7-0 voice vote.
 
  ________________________
Craig H. McFarland
Mayor
ATTEST:


 
 
___________________________
Gloria Leija, 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 26th day of June 2017. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 17th day of July, 2017



_______________________________
Gloria Leija, MMC
City Clerk

    

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