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AGENDA ITEM #: 5.
DATE: 04/12/2021

 
CITY COUNCIL ACTION REPORT
 
SUBJECT: CONSENT AGREEMENT WITH ARIZONA CORPORATION COMMISSION
 
STAFF PRESENTER(S): Sumeet Mohan, Engineering Director

SUMMARY:

City staff was cited by the Arizona Corporation Commission for violating state’s Blue Stake Law.  The proposed Consent Agreement will resolve the violation without further legal action. 
 

Recommendation:

Approve and authorize the City Manager to execute the Consent Agreement between the Arizona Corporation Commission and the City of Goodyear.  (Sumeet Mohan, Engineering Director)

FISCAL IMPACT:

Under the terms of the Consent Agreement, the city will be responsible for paying a civil penalty in the amount of $250.

BACKGROUND AND PREVIOUS ACTIONS:

Under Arizona’s Blue Stake Laws (A.R.S. § 40-360.21 et seq.) before undertaking any excavation within public rights of way and/or public utility easement areas, the person undertaking the excavation has to first determine whether underground facilities will be encountered.  This is done through the Blue Stake process.  Violations of Arizona’s Blue Stake can result in a fine of up to $5,000. 
 
On March 15, 2021 the city received a notice of violation (“NOV”) from the Arizona Corporation Commission for work performed by city staff without a Blue Stake ticket.  
 
The circumstances giving rise to the NOV resulted from emergency repairs undertaken by city staff to repair city fiber optic cable and conduit that had been damaged by a utility contractor doing work at the intersection of Estrella/PebbleCreek Parkway and I-10.  The damage to the city’s fiber optic cable resulted in the loss of communications to nearly half of the city’s signalized intersections.  After the utility contractor refused to repair our damaged infrastructure, staff expedited the repairs to reestablish fiber connectivity. 
 
City staff does not generally undertake any excavation work because this sort of work is generally done by contractors hired by the city.  Since utility markings were already present on the ground, staff assumed another Blue Stake ticket request was not needed. Staff’s assumption turned out to be incorrect.  Someone reported the excavation activity.  The ACC informed staff that any excavation requires a separate Blue Stake ticket request from each excavator. 

 

STAFF ANALYSIS

Under the terms of the Consent Agreement, the city will be agreeing to pay the $250 civil penalty and to comply with Arizona’s Blue Stake Laws, which the city is already required to do.  The ACC will take no further action regarding the NOV, but the Consent Agreement will be maintained as a public record of resolution of the NOV.
 

Staff is recommending the approval and execution of the Consent Agreement.  The execution of the Consent Agreement and the payment of a $250 civil penalty will resolve the NOV without further legal action, and eliminates any risk of a larger fine.  Staff is reviewing internal policies to ensure compliance with Arizona’s Blue Stake Laws. 
 

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