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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, AUGUST 1, 2016
 
             
A.   Call to Order

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

Council Member Herman delivered the invocation.
             
  Pledge of Allegiance

Mayor Pro Tempore Montoya led the Pledge of Allegiance to the Flag.
             
B.   Roll Call

The following Council Members were present:
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
Mark McCrory, Police Chief
Paul Tice, Planning & Development Director
Scott Miller, Fire Chief
Dawn Jett, Human Resources Director
Kevin Louis, Public Works Director
Celina Morris, Accounting Manager
Steven Turner, Management Analysts
Duane Eitel, Traffic Engineer
             
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 - July 18, 2016
             
  C.2    Planning and Zoning Commission - June 2, 2016
             
  C.3    Historic Preservation Commission - June 27, 2016
             
D.   Claims
             
  D.1    Claims - July 14 and 21, 2016

Council Member Varela moved to approve and pay the reported claims dated July 14 and 21, 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 Kortsen seconded the motion and was carried unanimously.
             
F.   Special Presentations

None
             
G.   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.

Mayor Pro Tempore Montoya moved for passage 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. 2946.1
Accepting the Renewed Proposal for Professional Services
from Arizona Land Advisors, LLC DBA Land Advisors
Organization and Airport Property Specialists, LLC
Provide Commercial Brokerage Service for the
Donovan M. Kramer Sr. Industrial Airport, Phase III


By a 7-0 roll call vote under the consent Agenda, Council passed and adopted Ordinance No. 2946.1, which appeared before Council for a second reading, Accepting the Renewed Proposal for Professional Services from Arizona Land Advisors, LLC DBA Land Advisors Organization (“Broker”) and Airport Property Specialists, LL (“Co-Listing Broker”) to provide Commercial Brokerage Services; and authorizing the execution of a contract amendment.
 
             
  *G.2   
Final Adoption of Ordinance No. 2970
Designating Henry & Horne, PLC as the City’s Independent
Certified Public Accountants for Fiscal Year 2016-2017


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2970, which appeared before Council for a second reading, Designating Henry & Horne, LLP as the City’s Independent Certified Public Accountants for FY 2016-2017; authorizing expenditure of public funds in an amount not to exceed $66,000.00; and authorizing the execution of an agreement.
             
  *G.3   
Final Adoption of Ordinance No. 2971
Accepting the Proposal for Professional Services from
Sunrise Engineering, Inc.
Provide Professional Engineering Services for the
City's Kortsen Relief Sewer Project


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2971, which appeared before Council for a second reading, Accepting the Proposal for Professional Services from Sunrise Engineering, Inc. to provide Professional Engineering Services for the City’s Kortsen Relief Sewer Project; authorizing expenditure of public funds in an amount not to exceed $499,700.00; and authorizing the execution of a contract.
             
  *G.4   
Final Adoption of Ordinance No. 2972
Accepting a Bid from Ameresco Southwest, Inc.
Replace All City Streetlights from High-Pressure
Sodium to Light-Emitting Diode (LED) Streetlights


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2972, which appeared before Council for a second reading, Accepting a Bid from Ameresco Southwest, Inc. to replace all City Streetlights from High-Pressure Sodium to Light-Emitting Diode (LED) Streetlights; authorizing the expenditure of public funds in an amount not to exceed $1,739,249.00; and authorizing execution of a contract with, or purchase order to, Ameresco Southwest, Inc. in accordance with the terms submitted to the Arizona State Bid List.
             
  *G.5   
Final Adoption of Ordinance No. 2973
Approving the Master Lease Agreement with
New Cingular Wireless PCS, LLC


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 2973, which appeared before Council for a second reading, Approving the Master Lease Agreement between the City of Casa Grande and New Cingular Wireless PCS, LLC; and Authorizing the Execution of the Agreement by the City Manager.
             
  *G.6   
Final Adoption of Ordinance No. 1178.375
Changing the Zoning from Single-Family Residential (R-1) to
General Business (B-2) on Property Located at North Side of
Gila Bend Highway East of Burris Road (DSA-16-00041)


By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Ordinance No. 1178.375, which appeared before Council for a second reading, Amending Zoning Ordinance #1178 and its subsequent amendments by changing the zoning from Single-Family Residential (R-1) to General Business (B-2) on property located on the North Side of Gila Bend Highway East of Burris Road, Casa Grande, Arizona.
             
  *G.7   
Consider a Liquor License Application Series #09 (09110018)
Location Transfer to Kim K. Kwiatkowski, dba,
Circle K Store #3485, Located at 1514 E. Florence Boulevard


City Clerk Miller recommended in her request for Council Action form the Mayor and Council instruct the City Clerk to forward a recommendation to the Arizona Department of Liquor Licenses & Control Board to approve a Liquor License Application Series #9 (09110018), Location Transfer to Kim Kenneth Kwiatkowski, dba, Circle K Store #3485, located at 1415 E. Florence Boulevard, Casa Grande, AZ 85122.

City Clerk Miller reported that the application under consideration is for a Liquor License Location Transfer, Series #9 (09110018).  The applicant is Kim Kenneth Kwiatkowski, dba, Circle K Store #3485, located at 1415 E. Florence Boulevard, Casa Grande, AZ 85122.  The type of license is a Series #9, liquor store license, which is an off-sale retailer’s license to sell all spirituous liquors.  As required by law, the Notice to the Public and a copy of the application were appropriately posted for 20 days.  The twenty (20) days expired on July 8, 2016.  The City Clerk’s Office did not receive any comments opposing or supporting the application.
 
The Police Department and Building Official have submitted favorable recommendations to approve the application.

The State Liquor License Application fee is $100.00 and the City Annual Business Transaction License fee is $70.00.  

If the Council takes no action and fails to provide the State Liquor License Board with its order of approval or disapproval, as provided in A.R.S. 4-201, within 60 days of the application, the Board will proceed as though the Council had entered an order of approval.

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 & Control for issuance of a Series #09 (09110018), Location Transfer to Kim K. Kwiatkowski, dba, Circle K Store #3485, Located at 1514 E. Florence Boulevard, Casa Grande, AZ 85122
             
  *G.8   
4th Quarterly Report for FY 2015-2016
Casa Grande Valley Historical Society


By a 7-0 roll call vote under the Consent Agenda, Council accepted the Casa Grande Valley Historical Society 's 4th Quarterly FY15-16.  The reports are filed with the City Clerk's Office. 
             
  *G.9   
4th Quarterly Report and Annual Report for FY 2015-2016
Boys & Girls Clubs of the Casa Grande Valley


By a 7-0 roll call vote under the Consent Agenda, Council accepted the Boys & Girls Clubs of the Casa Grande Valley's 4th Quarterly Report and Annual Report for FY 2015-2016.  The reports are filed with the City Clerk's Office.
             
  *G.10   
Annual Report for FY 2015-2016
Greater Casa Grande Chamber of Commerce


By a 7-0 roll call vote under the Consent Agenda, Council accepted the Greater Casa Grande Chamber of Commerce's Annual Report for FY 2015-2016.  The report are filed with the City Clerk's Office.
             
  *G.11   
Resolution No. 4999
Accepting the Sole Source Provider Offer
FarrWest Environmental Supply, Inc.
Provide a Smiths HazMatID Elite Metering and
Detection System for the City's Fire Department


Fire Chief Miller recommended in his Request for Council Action form that the Mayor and Council adopt a resolution to authorize the purchase of a Smiths HazMatID Elite metering and detection system through Farr West Environmental for an amount not to exceed $49,632.00.

Chief Miller reported that this purchase authorization is being funded by a grant awarded through the 2015 Arizona Department of Homeland Security Grant 150300-01 for $59,200 and accepted by the City Council on December 7, 2015 under Resolution No. 4959. This purchase is for a Smiths metering and detection system for hazardous materials. This system is specifically designed to test for unknown liquids and solids. Test samples are analyzed in 60 seconds. It supplements the old fashion way of using a HazCat kit that takes 15-30 minutes. This maximizes efficiency at hazmat incidents and utilizes manpower more effectively. The unit is ruggidized and can be taken down range for instant analysis while crews are still suiting up in Level A protection. This is a sole source procurement and the city process was followed. 

The purchase amount will not exceed $49,632.00 to include shipping and taxes. This is not a match grant and there is no fiscal investment impact to the city at this time. After the initial warranty is up, the department would take care of the maintenance of the unit if needed.

By a 7-0 roll call vote under the Consent Agenda, Council passed and adopted Resolution No. 4999, Accepting the Sole Source Provider Offer from FarrWest Environmental Supply, Inc. to provide a Smiths HazMatID Elite Metering and Detection System; authorizing expenditure of public funds in an amount not to exceed $49,632.00; and authorizing the execution of a contract.
             
H.   Public Comments

Mayor Jackson called for public comments.

Deputy City Manager Rains introduced Mr. James Burke as the Interim Community Services Director. Mr. Burke has over 25 years of experience in the leadership, management, and operations in the Parks and Recreation field.

Mr. Jim Burke, Interim Community Services Director introduced himself to the City Council.

Mayor and Council welcomed Mr. Burke to the City's workforce.
             
I.   Award of Contracts
             
  I.1   
Resolution No. 5000
Public Works On-Call for Maintenance and
Repair Services for Fiscal Year 2016-2017

Public Works Director Louis highlighted the below information as appeared in his Request for Council Action form. Staff recommends the Mayor and City Council award a Contract for Maintenance & Repair Services to each of the selected firms listed below to provide maintenance and repair services on an as-needed basis:
  1. A&D Eagle Towing & Demolition
  2. Ancon
  3. Best Way Electric Motor Service
  4. Carollo Engineers
  5. DBA Construction, Inc.
  6. Delta Systems Engineering, Inc.
  7. Desert Septic, LLC
  8. Diaz Developing Contractor, LLC
  9. Ellison-Mills Contracting, LLC
  10. Felix Construction Company
  11. Hennesy Mechanical Sales
  12. James, Cooke & Hobson, Inc.
  13. Phoenix Pumps
  14. Quest Electric, Inc.
  15. RDH Environmental Services
  16. Redpoint Contracting
  17. Rummel Construction, Inc.
  18. So Cal Excavation, LLC
  19. Southwest Barricades
  20. Spectra Electrical Services
  21. Vertech
  22. Weber Water Resources
In order to provide maintenance support to the Public Works Department for small projects, staff seeks to establish a pre-qualified list of contractors/vendors to provide non-exclusive maintenance and repair services on an as-needed basis. These contracts will also be available for use by other Departments throughout the City, and would be available to other qualified agencies through Cooperative use of these contracts.
 
To develop this list, a Request for Qualifications (RFQ) for “Public Works On-Call Maintenance & Repair Services” was published.  In response to this solicitation, Statements of Qualifications (SOQ) were received from twenty-two (22) vendors. Each SOQ was reviewed by appropriate City Staff.  After review of those Statements of Qualifications, the review panel selected the firms listed for on-call services.  It is intended that this list be utilized as needed through Fiscal Year 2017 and, at the City’s sole discretion, may be extended annually for use through Fiscal Year 2019.
 
As was stated in the RFQ, no guarantee is made that any work will be assigned to any firm(s). When necessary to support any given project or division, assignment of projects will be made to one or more of the listed firms possessing necessary specialty as required.  Projects assigned to any one firm are not to exceed a maximum of $49,999 in aggregate fees within any Fiscal Year.  No single award to any individual consultant or firm will be in excess of $25,000. When a Contractor is selected for any given project, an appropriate scope and fee for the project will be negotiated with the selected firm. Payment for any given project or department is to be made from the appropriate fund for that project or department for any fees due based on the limits outlined.
 
DISCUSSION

Council Member Fitzgibbons requested for Director Louis to identify the local contractors out of the twenty-two (22) on-call contracts for the Public Works maintenance and repair services.
 
Director Louis apologized for not having the information at this time and indicated that over the past three years the department has utilized the local contractors more so than out of town it all depend on what the skill level the department is looking for and if local contractors are qualified.
 
Further, Director Louis conveyed that he will identify to highlight the local contractors on the call list and will forward the information to the City Council.
 
Mayor Jackson requested for Director Louis to also identify the type of project/services that are not locally available.

City Clerk Miller read by title only Resolution 5000, Approving the terms and conditions of twenty-two (22) agreements with various companies for the purpose of On-Call Routine Facility Maintenance and Repair Services for Fiscal Year 2016-2017; authorizing expenditure of public funds; and authorizing execution of twenty-two (22) agreements.
  Council Member Kortsen moved for passage Resolution No. 5000.  Council Member Fitzgibbons 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. 5000 passed and adopted.
             
  I.2   
Ordinance No. 2974
Accepting a Bid from Grey Mountain Construction, LLC
Construction for the Thornton Road Project
(Gila Bend Highway to Cottonwood Lane)

 
Public Works Director Louis highlighted the below information as appeared in his Request for Council Action form.

Staff Recommends the Mayor and City Council authorize the City Manager to execute a contract with Grey Mountain Construction, LLC for a total base bid amount of $1,129,475 and a 20% contingency for a total amount not to exceed $1,355,370.  This contract will provide for the construction of the Thornton Road Project between Gila Bend Highway and Cottonwood Lane.
 
This segment of roadway has significant heavy truck traffic primarily to and from the distribution facilities and other industrial businesses in the area.  The street has been steadily deteriorating over the past few years.  Consequently, we are continually repairing pot holes and soon the entire road could turn into more of a dirt road than paved.  The intent of this project is to reconstruct the roadway within the existing width and provide improvements to the grade for better drainage.  The project includes the removal and replacement of existing pavement and curbs sections.
 
Staff solicited bids for this project and received 13 submittals ranging from the low at $1,129,475 to the high at $1,740,000.  The project was originally broken into two phases due to funding availability and preliminary estimates.  Due to staff driving some late design changes, the estimate was reduces, allowing staff to bid as one project.  Total budget authority for the combined phases is $2,041,300.

The funding for this project comes from streets, Phase 1 account number 403-21-201-100-8301-14006 ($1,241,300) and Phase 2 account number 201-21-201-100-8301-16014 ($800,000). 
Don't reconstruct.
 

DISCUSSION

Council Member Herman asked if there will be detour set-up while the project is on-going make sure the industrial businesses in the area are aware in order to instruct their trucks to access Interstate-8.
 
Traffic Engineer Eitel conveyed that the project will be built under traffic. There will be times one lane going one direction with flagging or individual directing traffic.  The department already visited and informed all businesses in the area to inform about the project construction.  Staff also encouraged Wal-Mart and the Distribution Centers to utilize Interstate-8 during the construction period. 
 
Council Member Herman reported receiving a lot of complaints about the transition over the railroad tracks and inquired if this issue will be address to make it better or smoother.
 
In response to Council Member Herman, Mr. Eitel conveyed that the Union Pacific Railroad Company approved an agreement for Staff to work right out to the tracks, but he does not have the final official agreement details to provide Council at this time.
 
In response to Council Member Fitzgibbons, Mr. Eitel conveyed that the project will start the middle of September.  This type of project usually completes less than three months; however Staff provided the contractor more than three months to complete the project.
 
Council Member Powell reported receiving calls from National Vitamins and other industries expressing their concerns regarding the crossings and what it does to the loads that are coming in.  Further, Council Member Powell conveyed that this construction project will be wonderfully received by everyone in the industrial area and very glad to see that this project is being done. 
 
In response to Mayor Pro Tempore Montoya, Mr. Eitel conveyed that the suggestion of closing down the section for construction would be ideal; however, Staff cannot figure out a reasonable detour to accommodate. 

City Clerk Miller read by title only Ordinance No. 2974, Accepting a Bid from Grey Mountain Construction, LLC to provide the construction for the Thornton Road Project; authorizing expenditure of public funds in an amount not to exceed $1,355,370.00; and authorizing the execution of a contract.  
  Council Member Herman moved for passage Ordinance No. 2974.  Council Member Powell 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. 2974 passed to a second reading.
             
J.   Boards & Commissions

None
             
K.   Ordinances, Resolutions, and Other matters or Subjects Requiring Action by the Council
             
  K.1   
Ordinance No. 2975
Adoption of the City's Fiscal Year 2016-2017 Property Tax Levy

 
Accounting Manager Celina Morris recommended that the Mayor and Council Adopt an ordinance establishing the primary and secondary tax rates for the City of Casa Grande for FY2017.

Ms. Morris reported that on June 20th, the Mayor and Council held a public hearing on the FY2017 Final Budget and the primary and secondary tax levies contained in this action. Primary property taxes collected are used within the general fund for operational purposes and secondary property taxes are utilized to pay voter authorized general obligation bond debt. Primary property taxes collected are used within the general fund for operational purposes and secondary property taxes are utilized to pay voter authorized general obligation bond debt.

Ms. Morris conveyed that based upon current assessed valuations, the proposed primary property tax rate of $0.9999 will raise a tax levy of approximately $3,446,500 and the secondary rate of $0.6308 will raise a tax levy of approximately $2,110,300.  It is the intent of the City that the property tax rates of $0.9999 and $0.6308 be adopted and that if any adjustments are required to be made by the county that they do so in the levy.

Adoption of the primary and secondary property tax rates is a significant portion of the City's annual operational revenues.

City Clerk Miller read by title only Ordinance No. 2975, Levying upon the assessed valuation of the property within the City of Casa Grande Subject to taxation a certain sum upon each one hundred dollars of valuation sufficient to raise the amount estimated to be required in the Annual Budget, less the amount estimated to be received from fines, licenses and other sources of revenue; providing funds for various bond redemptions, for the purpose of paying interest upon bonded indebtedness; and providing a General Fund for General Municipal Expenses; all for the Fiscal Year Ending the 30th day of June, 2017.
  Council Member Varela moved for passage Ordinance No. 2975.  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 Ordinance No. 2975 passed to a second reading.
             
  K.2   
Santa Cruz Crossing Final Plat (DSA-15-00138) and
Dedication for the Public Drainage Easement


Planning & Development Director Tice highlighted the below as appeared in his Request for Council Action form.

City Staff recommends that City Council approve the Resolution for the revised Santa Cruz Crossing Final Plat and the Ordinance dedication for the public drainage easement. 

Santa Cruz Crossing Final Plat (DSA-15-00138) was approved by City Council on March 7, 2016.  Since this approval, some technical modifications to the plat have been determined to be necessary prior to recordation to accommodate a request from Arizona Water Company to expand its nearby well site. Arizona Water has indicated that they need some of the land proposed as Lot 4 to be dedicated to them allowing an expansion of their well site in order to serve the long-range needs of the Santa Cruz Crossing subdivision and other adjacent areas.   In order to accommodate the requirement of Arizona Water Company for additional land for their well site, it is necessary to remove Lots 4 & 7 which are located south of the proposed Santa Cruz Road from the Final Plat at this time. These lots will be included in a future Final Plat when the final determination of the specific configuration of the  Arizona Water well site is completed. Accordingly, the revised Final Plat needs to be re-approved by City Council via a Resolution prior to recordation.

Additionally, since the 60 ft. wide public drainage way that was located upon proposed Lots 4 & & 7, as identified and approved on the original  Final Plat, is still necessary to convey off-site drainage, this drainage easement is being dedicated through a Map of Dedication in the same location as shown on the Santa Cruz Crossing Final Plat. An Ordinance accepting this drainage easement dedication requires City Council approval as well. 

No new fiscal impact to City is to occur as this public drainage way was already approved on the Santa Cruz Final Plat, and the easement documents require the property owner to maintain the drainage way.
 
 
DISCUSSION

In response to Council Member Powell, Director Tice explained by referring to the map on his slide presentation the drainage channelization design where the water drains of the drainage ditch located on the south side of Rodeo Road filling the water flow from east to the west; and Pueblo Road comes south on an open ditch and crosses Santa Cruz and empties into the drain.
 
In response to Council Member Fitzgibbons, Director Tice conveyed that the final plat provided to the City Council with their agenda packet will be the recorded final plat with five (5) lots, but in the future Council will see additional platting for the two (2) southern lots that Staff is now removing; the developer will come back for council consideration to approve the additional plat.
 
Director Tice concurred with Mayor Pro Tempore Montoya’s comment that approval of the final plat tonight will help the project move forward.
 
City Attorney Wallace announced for clarification on the graphic that indicates “final plat approve” of the slide presentation does not match and referred Council to the narrative in the Request for Council Action form indicating the correct actual final lot numbers which is Lots 4 & 7 located south of the Santa Cruz.  City Attorney Wallace also indicated that the final plat provided as supporting document in the council packet indicates the correct lots (4 & 7).
 
Director Tice announced that the final plat configuration matches but the numbering does not match on his slide presentation.
 
Resolution No. 2825.198.1
Revised Final Plat for Santa Cruz Crossing


City Clerk Miller read by title only Resolution No. 2825.198.1, Approving the “Revised” Final Plat for Santa Cruz Crossing.
  Council Member Fitzgibbons moved for passage Resolution No. 2825.198.1.  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. 2825.198.1 passed and adopted.
 
Ordinance No. 2976
Santa Cruz Crossing Dedication for the
Public Drainage Easement


City Clerk Miller read by title only Ordinance No. 2976, Conditionally accepting dedication of drainage easement and related utilities for Irving and Lillian Fabricant Trust.
  Council Member Fitzgibbons moved for passage Ordinance No. 2976.  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 Ordinance No. 2976 passed to a second reading.
             
  K.3   
Resolution No. 5001
Approving the Terms and Conditions of a Settlement Agreement and Release of claims Between Pinal County and the City of Casa Grande; and Approving the Terms and Conditions of Settlement Agreement and Release of Claims Between Desert Vista  Sanitary District and the City of Casa Grande


Deputy City Manager Rains highlighted the below information as appeared in his Request for Council Action form.

Staff recommends that Mayor and Council approve a resolution authorizing the Settlement Agreements and Releases of Claims with Pinal County and Desert Vista Sanitary District.

In regards to the Settlement Agreement and Release of Claims with Pinal County, the City of Casa Grande entered into an Intergovernmental Agreement (IGA) with the Desert Vista Sanitary District (District) to provide wastewater services in July 2006. In April 2014, the District ceased making payments to the City under the IGA. The City of Casa Grande filed a Notice of Claim against the County for breach of contract and unjust enrichment based on the lack of payment. Casa Grande and Pinal County have agreed to settle the Notice of Claim in accordance with the terms and conditions of the Settlement Agreement and Release of Claims.
 
The provisions of the Settlement Agreement and Release of Claims with Pinal County include a payment in the sum of $215,448.48 for the unpaid amounts due and owing to the City.  In exchange both parties release the other from any and all legal and equitable claims, causes of action, debts, accounts, and damages related to the services provided to the District.
 
In regards to the Settlement Agreement and Release of Claims with the District, the aforementioned IGA called for the District to pay the amounts owed to Casa Grande after collection of its tax levy. However, the District was sued for improper use of the tax levy to collect user fees and as a result no longer includes amounts for user fees in its tax levy. The District was then unable to collect user fees and as a result ceased making payments to Casa Grande under the IGA as of April 2014. The City filed a Notice of Claim against the District for breach of the IGA, but continues to provide wastewater services to the District notwithstanding the dispute regarding payment. The City of Casa Grande and the District have agreed to settle the Notice of Claim in accordance with the terms and conditions of the Settlement Agreement and Release of Claims so as to fully resolve the issue between the two Parties.
 
The provisions of the Settlement Agreement and Release of Claims with the District include the following:
 
1) Casa Grande acknowledges that it will receive payment of $215,448.48 for unpaid charges for wastewater treatment under a separate Settlement Agreement reached with Pinal County.
 
2) Casa Grande will continue to provide wastewater treatment for the District and designate an employee of the City as a Certified Operator of the Desert Vista Sanitary District Collection system, as defined in A.A.C. R18-5-101, for purposes of complying with state and federal wastewater regulations.
 
3) The District has adopted an additional fee related to previous uncollected user fees and will review its user fees each year and adjust the rate as necessary to keep the user fee rate at least equal to the then existing outside city limits residential rate charged by Casa Grande. The District has adopted user fees at least equal to one and a half times the currently existing residential rate charged by Casa Grande.
 
4) The District shall remain and is solely responsible for the maintenance and repair of the Desert Vista Sanitary District sewer collection system (DV System). This Agreement also provides for the situation where the District is unwilling or unable to provide timely maintenance and repair in Casa Grande’s reasonable adjustment and reimbursement policies.
 
5) Casa Grande shall submit monthly bills for service to users within the District based upon user information provided by the District.

6) In order for District to provide adequate maintenance and repair of the system and as consideration of the release and settlement contained herein, the language of the IGA shall be amended by this Agreement to require the District to pay to Casa Grande only an amount equal to one and one-quarter times Casa Grande’s residential wastewater rate per District user.
 
7) At least quarterly, Casa Grande shall provide a reconciliation of the District fees, any amounts owed by District for unpaid maintenance and repair provided by City or its contractors, and the amounts collected by the City from District users as a result of the billings. In the event the City has collected more in user fees than the City is owed from the District, City shall pay the balance to District along with the reconciliation. In the event the reconciliation shows that City has collected less in user fees than the City is owed by the District, District shall, within thirty (30) days, pay to Casa Grande the full difference between the amounts collected and owed.
 
8) The City and District release and discharge the other Party from all legal and equitable claims, causes of action, debts, accounts, and damages. 

The following are the fiscal impact:

1) The City of Casa Grande will receive a payment in the sum of $215,448.48 from Pinal County.
 
2) The City of Casa Grande will receive one and a quarter times Casa Grande’s residential wastewater rate per District user. 
 
DISCUSSION

In response to Council Member Fitzgibbons, City Manager Rains conveyed that there are approximately 100 users at Desert Vista Sanitary District.  The actual maintenance will continue to be covered by the District.  The district has the ability to assess the property tax and earn revenue for maintenance and repairs. 
 
In response to Council Member Fitzgibbons, City Attorney Wallace explained that the District and Pinal County approved an Intergovernmental Agreement (IGA) amongst themselves as part of their approval of this agreement on July 20 that the District will reimburse Pinal County for the settlement amount.  Pinal County is ultimately the one paying the tab as included on the notice of claim, but the district and each user will ultimately be responsible.  Although there are only 100 users out there, it is important to remember that the City of Casa Grande only has one customer, which is the District.  The District is responsible for the payment of the amount of revenue that the City agreed to with respect whether their customers pay them. The risk of non-collection is on the District and not the City.
 
In response to Council Member Powell, City Manager Rains conveyed that the revenue for the City will be neutral in the worst case scenario and better in the best case scenario.  The City’s established rates for this particular service are based solely on the cost to the City providing the wastewater treatment services to our entire system of which this particular District is included.  Because the District is outside the city limit, our City Code and rates are established that require them to pay at a higher rate than those customer living within the city limits.  The District will pay the premium.

It was the consensus of the City Council to cancel the discussion of this item in the executive session meeting.

City Clerk Miller read by title only Resolution No. 5001, Approving the terms and conditions of a Settlement Agreement and Release of Claims between Pinal County and the City of Casa Grande; Approving the terms and conditions of a Settlement Agreement and Release of Claims between Desert Vista Sanitary District and the City of Casa Grande; and authorizing the execution of the agreements.
  Council Member Herman moved for passage Resolution No. 5001.  Council Member Varela 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. 5001 passed and adopted.
             
L.   Public Meetings, Public Hearings, Open Record Reviews, and Closed Record Reviews

None
             
M.   Executive Session:
             
  M.1    Mayor Pro Tempore Montoya moved to hold the executive session for the below items: 
 
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 with the City Attorney Regarding the Development, Financing Participation and Intergovernmental Agreement for Villago Community Facilities District Between City of Casa Grande and VVland, LLP, Vland2LLP, VlandLLLP, Vland LLP, Vland4 LLLP and Vland 5 LLLP. 
     
  • Discussion and Consultation with the City Attorney Regarding the Santa Cruz Crossing Development Agreement.
     
  • Discussion and Consultation with the City Attorney Regarding the Assignment of the Pre-Annexation and Development Agreement with Harvard Casa Grande Ventures, LLC and Post 400 LLLP.

Council Member Herman seconded the motion and was carried with a 7-0 voice vote.
             
N.   Reports

Council Member Varela reported the following:
  • Offered update on the recent completed Police and Code Enforcement Health Training; additional class will be schedule.
  • Announce that the Casa Grande Chamber of Commerce and Culvers are having a back to school fundraising (school supplies) to support both Eloy and Casa Grande students.
  • Announced that tonight is his 35th wedding anniversary with Blanca.
Council Member Fitzgibbons reported the following:
  • Encouraged the community to review the reports submitted by the non-profit organizations partnership with the City. These reports are available at the City Clerk’s Office and incorporated with the council agenda packet posted on the website. These reports provide information on how the non-profit organization programs and expenditures of funding assistance provided by the City to support the community.
  • Reminded everyone that 1st day of school started today and requested to be aware of the school speed limit signs and drive safely.
  • Wished “good luck” to all Casa Grande students for this new school year.
Council Member Herman reported the following:
  • Requested for Police Chief McCrory to assign officer patrols for the school zone to catch those drivers speeding in the school zone.
  • Expressed appreciation to the City’s Public Information Officer Department & Staff for their great job in producing the YouTube video of the Garden of Sunshine Memorial Candlelight Vigil.
  • Thanked Park Superintendent Rod Wood and his Department for preparing and cleaning the site of the Casa Grande Youth Commission Garden of Sunshine for the candlelight vigil ceremony.
Council Member Kortsen reported the following:
  • Reminded everyone to drive carefully and avoid passing at the school zone.
  • Acknowledged Matt Lemberg and the Boys & Girls Clubs of Casa Grande Valley for the programs and services they offer to the community.
  • Shared her visit up north and seeing former City of Casa Grande Assistant Fire Chief Morgan who is now working as Fire Chief for the Town of Pinetop Lakeside.
Council Member Powell offered update regarding water issues concerning the economy in Arizona and how it relates to the water shortage.

Mayor Pro Tempore Montoya reported the following:
  • Thankful that CG driving range road held up well from the water due recent rain.
  • Announced the Casa Grande Youth Commission 2016 Retreat.
  • Shared to reiterate his concerns from the study session concerning the Casa Grande Performance Institute.
Mayor Jackson reported the following:
  • Shared a notice received in the mail regarding City’s Flood Rating and expressed appreciation to Paul Tice and the Planning & Development Department.
  • Reminded the City Council of their scheduled meeting for Monday, August 8, 2016 staring at 6:00 p.m. Study Session and followed by a Special Meeting (Executive Session).
             
O.   Adjournment

There being no further business at this time, the meeting adjourned at 8:26 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 1st day of August 2016. I further certify that the meeting was duly called and held and that a quorum was present.
 
Dated this 15th day of August, 2016


 
_______________________________
Remilie S. Miller, MMC
City Clerk

    

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