Discussion and possible action on any and all matters regarding adopting a notice of intention to recuperate the city's costs through a special water connection surcharge on those connecting to the city-built water line on County 25th Street between Avenue E and Avenue D.  (Kay Marion Macuil, City Attorney and Eulogio Vera, Public Works Director)

Developers usually provide infrastructure for their lands.  However, in 2015, the City of San Luis built a waterline on County 25th Street between Avenue E and Avenue D. (Please see the fourth attachment for the map.) Arizona Revised Statute ("A.R.S.") Section 9-511.01 authorizes cities to recover their costs for water services by adding reasonable surcharges on the land benefited by a city-built water line. Under this law, the city must have a report supporting the charges and adopt and publish a “Notice of Intention” to impose a surcharge. This process was started on April 8, 2015, however, it appears that a public hearing was not held after the end of the statutory waiting period.

Professional Engineer James Davey studied the areas which are benefited by the waterline and prepared a report which supports a reasonable and equitable manner to charge the benefited lands as areas develop and begin connecting to the waterline. The report is the second attachment. Taking effect August 6, 2016, the Arizona Legislature amended A.R.S. Section 9-511.01(A)(1) to require a report or supporting data showing cash flow projections that indicate all anticipated revenues from residential and nonresidential customers and the overall expenses for providing water service. The cash flow information is included in the third attachment.

At this meeting, City Council is NOT voting on a surcharge. Council is only considering adopting the "Notice of Intention" (the first attachment) and setting a future public hearing as required by A.R.S. Section 9-511.01. The statute requires the public hearing to be held a minimum of 60 days after adoption of the notice of public hearing.  March 23, 2022, is the earliest regular Council Meeting that would meet the 60-day waiting period.