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AGENDA ITEM REVIEW FORM |
2.I.
Work Session
- Meeting Date:
- 09/06/2017
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Discussion Item - No Action to be Taken
ITEM:
Discussion and possible directions to staff on any and all matters regarding a Notice of Intent of a possible surcharge on San Luis Lane between 5th and 6th Avenues for water service. (Kay Marion Macuil, City Attorney)
SUMMARY:
Recently, residents on San Luis Lane have come to the city asking that the city do something about the high temperature of the water. This summer the city has responded with frequent flushing of the lines, but that did not result in a satisfactory solution.
In response to earlier resident concerns, the city paid for a study to be done which did show that San Luis Lane has extremely hot water. The cause was low flow in the main (the main on San Luis Lane dead-ends at the end of the cul de sac), shallow service lines, and the biggest jump in temperature was from outside to the inside where copper lines went to an uninsulated attic before going to the taps. Copper is an excellent conductor of heat.
As explained in the July 6, 2017, San Luis City Attorney Opinion, there is no legal requirement that the city control water temperature. A city can only pay out on claims that are legally enforceable. Due to the Arizona Constitution prohibition on cities spending money on individuals and staff and Council's fiduciary duty to protect the public treasury for public purposes, the residents of San Luis Lane would have to pay for any infrastructure changes. The changes only would benefit the 18 households on San Luis Lane, not the city as a whole.
Eulogio Vera, Director of Public Works, studied the matter and found the most likely way to increase flow would be to connect the San Luis Lane main line to a line servicing a nearby apartment complex. It is unknown whether this will actually lower the temperature of the water or increase the flow of any appreciable amount. Also, since the water temperature increases most from the outside to the inside, even if the flow increases, it may not lower the temperature very much if at all.
Mr. Vera also did a rough estimate of the cost for the project of about $15,000.00. To estimate the surcharge per month for 3 years would be the estimated $15,000.00 divided by 18 houses divided by 36 months (3 years) the surcharge would be $23.15 per month. A.R.S. §9-511.01 (D) requires that the surcharge be "just and reasonable." This formula of the cost divided by 18 houses divided by 36 months is just and reasonable. If approved to go forward, Public Works could get quotes for the best price for the project then of course divide that number by 18 houses and 36 months to calculate the surcharge.
Staff invited the residents of San Luis Lane to discuss the matter at a meeting on August 29. There are 18 houses on San Luis Lane and 13 households were represented and 9 of those present indicated by sworn affidavits that they understood the risk, that they would have to pay the cost and they still wanted the city to put in the line to try to increase the flow. A tenth household later contacted the city that they wanted to go forward as well.
With this much support for the project, the item is brought to Council to start the process to determine whether a surcharge will be imposed on San Luis Lane as part of their water bill to put in the line.
The first step for Council under A.R.S. §9-511.01(A) is to adopt by motion at a regular council meeting a notice of intent to impose a surcharge and set a date for a public hearing. Due to the notice requirements and the Thanksgiving Day holiday, staff is recommending the public hearing be set December 13, 2017.
The public hearing will give the residents of San Luis Lane an opportunity to express their views on whether or not to impose the surcharge and go forward with the project before City Council decides whether or not to do it.
The Notice of Intent of Possible San Luis Lane Surcharge is attached to this agenda item.
In response to earlier resident concerns, the city paid for a study to be done which did show that San Luis Lane has extremely hot water. The cause was low flow in the main (the main on San Luis Lane dead-ends at the end of the cul de sac), shallow service lines, and the biggest jump in temperature was from outside to the inside where copper lines went to an uninsulated attic before going to the taps. Copper is an excellent conductor of heat.
As explained in the July 6, 2017, San Luis City Attorney Opinion, there is no legal requirement that the city control water temperature. A city can only pay out on claims that are legally enforceable. Due to the Arizona Constitution prohibition on cities spending money on individuals and staff and Council's fiduciary duty to protect the public treasury for public purposes, the residents of San Luis Lane would have to pay for any infrastructure changes. The changes only would benefit the 18 households on San Luis Lane, not the city as a whole.
Eulogio Vera, Director of Public Works, studied the matter and found the most likely way to increase flow would be to connect the San Luis Lane main line to a line servicing a nearby apartment complex. It is unknown whether this will actually lower the temperature of the water or increase the flow of any appreciable amount. Also, since the water temperature increases most from the outside to the inside, even if the flow increases, it may not lower the temperature very much if at all.
Mr. Vera also did a rough estimate of the cost for the project of about $15,000.00. To estimate the surcharge per month for 3 years would be the estimated $15,000.00 divided by 18 houses divided by 36 months (3 years) the surcharge would be $23.15 per month. A.R.S. §9-511.01 (D) requires that the surcharge be "just and reasonable." This formula of the cost divided by 18 houses divided by 36 months is just and reasonable. If approved to go forward, Public Works could get quotes for the best price for the project then of course divide that number by 18 houses and 36 months to calculate the surcharge.
Staff invited the residents of San Luis Lane to discuss the matter at a meeting on August 29. There are 18 houses on San Luis Lane and 13 households were represented and 9 of those present indicated by sworn affidavits that they understood the risk, that they would have to pay the cost and they still wanted the city to put in the line to try to increase the flow. A tenth household later contacted the city that they wanted to go forward as well.
With this much support for the project, the item is brought to Council to start the process to determine whether a surcharge will be imposed on San Luis Lane as part of their water bill to put in the line.
The first step for Council under A.R.S. §9-511.01(A) is to adopt by motion at a regular council meeting a notice of intent to impose a surcharge and set a date for a public hearing. Due to the notice requirements and the Thanksgiving Day holiday, staff is recommending the public hearing be set December 13, 2017.
The public hearing will give the residents of San Luis Lane an opportunity to express their views on whether or not to impose the surcharge and go forward with the project before City Council decides whether or not to do it.
The Notice of Intent of Possible San Luis Lane Surcharge is attached to this agenda item.
RECOMMENDATION / SUGGESTED MOTION:
Discussion and possible directions to staff only, no action.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- N/A
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This item is to adopt a notice of possible surchage and to set the public hearing. It is estimated that the cost to put in the proposed infrastructure may be $15,000 which the city would recover over a 3-year period with a surcharge.