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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 12/13/2017
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Public Hearing
Public Hearing
ITEM:
Public Hearing followed by discussion and possible action on any and all matters regarding a surcharge on residents of San Luis Lane between 5th and 6th Avenues for additional infrastructure to increase circulation of water. (Eulogio Vera, Director of Public Works)
A. Open Public Hearing
1. Staff presentation
2. Call to the public on this item only
B. Close Public Hearing
C. Action on Surcharge
A. Open Public Hearing
1. Staff presentation
2. Call to the public on this item only
B. Close Public Hearing
C. Action on Surcharge
SUMMARY:
Purpose of the Public Hearing
This Public Hearing receives input from the public regarding a surcharge on 18 households on a cul de sac, specifically San Luis Lane between 5th and 6th Avenues. This surcharge would pay for additional infrastructure to increase circulation of water on that cul de sac. One cause of hot water in the area is water moving slowly in the pipes. This Public Hearing has been properly noticed. After the close of the Public Hearing, Council may take action deciding whether to go forward with the surcharge and building the project or set the action item for a future meeting.
Why Must a Surcharge Be Imposed for this Project?
As explained on 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 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. (For more detail please see Attachment 1. City Attorney Opinion).
Formula to Calculate the Amount of the Surcharge
As explained in the August 30, 2017, report which has been on file with the City Clerk as part of the notice requirement, the city cost would be recovered in a surcharge to the 18 households benefited. Under State Law (A.R.S. 9-511.01) the surcharge must be just and reasonable. This calculation meets that requirement.
As of the writing of this agenda item, the estimate is $15,000.00 to build the infrastructure. 18 households benefit and the cost can be extended over a three-year period of months that would be 12 months per year for 3 years equals 36 months. The formula then is:
Cost divided by 18 households divided by 36 months equals the surcharge per month. (Note, Council could extend the time to more than 36 months).
Plugging in our example $15,000.00 /18 households /36 months = $23.15 per household per month.
The actual cost could be more or even less than this estimate. The city would recover the actual cost through the surcharge. The surcharge would remain in effect on each household lot for a full period of 36 months of water service. So, if the lot is vacant for three (3) months, the surcharge will be suspended for three (3) months during the period the lot is vacant and will pick up again when service is reestablished until a full 36 months of the surcharge are paid for that lot. (For more detail please see Attachment 2, Report in Support of Surcharge).
Caution
In response to residents concerns about the tap water being hot, the city paid for a study to be done which showed that San Luis Lane has hot water. The causes were not only low flow in the main line due to the line dead-ends at the end of the cul de sac, but also 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. So, there is no guarantee that increasing the circulation of the water in the main line will decrease the temperature of the water. (For more detail, please see Attachment 3, Temperature Data Report).
Background
This past summer of 2017, residents of San Luis Lane came 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.
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. Again, it is unknown whether this will actually lower the temperature of the water or increase the flow of any appreciable amount.
August 29, 2017, Staff conducted a meeting inviting the residents of San Luis Lane to discuss the matter. There are 18 houses on San Luis Lane and 13 households were represented and 9 of those present indicated by sworn affidavits 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.
September 6, 2017, With 10 out of 18 supporting the project, the item was brought to Council in a work session to seek direction as to whether to start the process with a Notice of Intent to for Possible Surcharge. Council directed staff to go forward which would give residents a chance to present their views at this Public Hearing.
September 13, 2017, Staff in response brought the item to Council for the first step under A.R.S. §9-511.01(A) 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 recommended the Public Hearing be set December 13, 2017. This Public Hearing allows the residents of San Luis Lane to express their views on whether to impose the surcharge and go forward with the project before City Council decides whether to do it. City Council voted to proceed accordingly.
Today
Staff recommends going forward only if a majority of the residents who will be paying for the project express a desire to have it done at the Public Hearing today.
This Public Hearing receives input from the public regarding a surcharge on 18 households on a cul de sac, specifically San Luis Lane between 5th and 6th Avenues. This surcharge would pay for additional infrastructure to increase circulation of water on that cul de sac. One cause of hot water in the area is water moving slowly in the pipes. This Public Hearing has been properly noticed. After the close of the Public Hearing, Council may take action deciding whether to go forward with the surcharge and building the project or set the action item for a future meeting.
Why Must a Surcharge Be Imposed for this Project?
As explained on 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 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. (For more detail please see Attachment 1. City Attorney Opinion).
Formula to Calculate the Amount of the Surcharge
As explained in the August 30, 2017, report which has been on file with the City Clerk as part of the notice requirement, the city cost would be recovered in a surcharge to the 18 households benefited. Under State Law (A.R.S. 9-511.01) the surcharge must be just and reasonable. This calculation meets that requirement.
As of the writing of this agenda item, the estimate is $15,000.00 to build the infrastructure. 18 households benefit and the cost can be extended over a three-year period of months that would be 12 months per year for 3 years equals 36 months. The formula then is:
Cost divided by 18 households divided by 36 months equals the surcharge per month. (Note, Council could extend the time to more than 36 months).
Plugging in our example $15,000.00 /18 households /36 months = $23.15 per household per month.
The actual cost could be more or even less than this estimate. The city would recover the actual cost through the surcharge. The surcharge would remain in effect on each household lot for a full period of 36 months of water service. So, if the lot is vacant for three (3) months, the surcharge will be suspended for three (3) months during the period the lot is vacant and will pick up again when service is reestablished until a full 36 months of the surcharge are paid for that lot. (For more detail please see Attachment 2, Report in Support of Surcharge).
Caution
In response to residents concerns about the tap water being hot, the city paid for a study to be done which showed that San Luis Lane has hot water. The causes were not only low flow in the main line due to the line dead-ends at the end of the cul de sac, but also 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. So, there is no guarantee that increasing the circulation of the water in the main line will decrease the temperature of the water. (For more detail, please see Attachment 3, Temperature Data Report).
Background
This past summer of 2017, residents of San Luis Lane came 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.
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. Again, it is unknown whether this will actually lower the temperature of the water or increase the flow of any appreciable amount.
August 29, 2017, Staff conducted a meeting inviting the residents of San Luis Lane to discuss the matter. There are 18 houses on San Luis Lane and 13 households were represented and 9 of those present indicated by sworn affidavits 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.
September 6, 2017, With 10 out of 18 supporting the project, the item was brought to Council in a work session to seek direction as to whether to start the process with a Notice of Intent to for Possible Surcharge. Council directed staff to go forward which would give residents a chance to present their views at this Public Hearing.
September 13, 2017, Staff in response brought the item to Council for the first step under A.R.S. §9-511.01(A) 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 recommended the Public Hearing be set December 13, 2017. This Public Hearing allows the residents of San Luis Lane to express their views on whether to impose the surcharge and go forward with the project before City Council decides whether to do it. City Council voted to proceed accordingly.
Today
Staff recommends going forward only if a majority of the residents who will be paying for the project express a desire to have it done at the Public Hearing today.
RECOMMENDATION / SUGGESTED MOTION:
A. I MOVE TO OPEN PUBLIC HEARING.
1. Presentation by Staff
2. Call to the Public on this Item only.
B. I MOVE TO CLOSE PUBLIC HEARING.
C. I MOVE TO APPROVE SURCHARGE ON SAN LUIS LANE AS PRESENTED AND DIRECT STAFF TO TAKE ALL ACTIONS TO CONSTRUCT THE CONNECTING WATER LINE AS PRESENTED.
1. Presentation by Staff
2. Call to the Public on this Item only.
B. I MOVE TO CLOSE PUBLIC HEARING.
C. I MOVE TO APPROVE SURCHARGE ON SAN LUIS LANE AS PRESENTED AND DIRECT STAFF TO TAKE ALL ACTIONS TO CONSTRUCT THE CONNECTING WATER LINE AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $15,000.00
- BUDGETED AMOUNT:
- No
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 300-302-70025 Maintenance/Other $15,000.00 DLLS.
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
$15,000.00 is an estimate of cost. The cost will be recovered through the proposed surcharge.