Members Present
Ben Barcon Michael Fries Carlo Gegen Herb Hacker Pete Hemingway
Barbara Koffron Scott Mardian (via telephone) Herman Orcutt Kenneth Roth Greg Russell
Paul Scott Patricia Thornham,
Members Absent
Stephen Elssmann Bob Ford Christopher Gentis Jake Jabobsen Michael McHale Danny Ortega
Steve Speer Darrell Wilson
Staff
Karen Beckley, City of Phoenix, DSD
Carole Borrego,City of Phoenix, DSD
Jeff DeWitt, City of Phoenix, Finance
Mark Gustafson, City of Phoenix, DSD
Joe McElvaney, City of Phoenix, DSD
Shawn Ortiz, City Managers Office
Joanne Owens, City of Phoenix, DSD
Tom Wandrie, City of Phoenix, DSD
Ex-Officio's Present
Jim Baughman, City of Phoenix, Planning
Martha Draper, City of Phoenix, NSD
Chaun Hill, City of Phoenix, Streets
Aaron LaRoque, City of Phoenix, Water Services
Derek Horn, City of Phoenix, DSD
Mike Hamblin, City of Phoenix, Law
Ex-Officio's Absent
Others in Attendance
Rus Brock, Homebuilders Association
CALL TO ORDER
Herman Orcutt, DAB Chairperson, convened the meeting at 3:52 p.m.
Approval of July 15, 2004 Minutes:
Motion was made by Paul Scott,
seconded by Ken Roth, to approve the meeting minutes of July 15, 2004. Motion carried unanimously.
Approval of August 19, 2004 Minutes:
Changes to minutes are as follows:
Page 14 of 15 on the Motion:
Motion was made by Ken Roth not Pete Hemingway
Page 15 of 15 on the Motion:
Motion was made by Ken Roth and seconded by Paul Scott
CALL TO THE PUBLIC
None
DISCUSSION OF SUBCOMMITTEE REPORTS:
Process and Procedures Subcommittee:
Ben Barcon stated that the subcommittee is working on rolled curbs for 28-foot wide streets, along with working
on solutions for stamps in concrete curbs for private streets. The installation of water meters have been discussed and
a number of other things.
Fiscal and Performance Subcommittee:
Patricia Thornham stated that the discussed the DSD Fee Implementation Process. Currently the Residential area of DSD
is working on a process for plot plans for standard subdivisions and pools it went from a huge backlog to bringing
everything current. The plans that staff received yesterday, they're working on the next day!
Ms. Thornham mentioned that DSD's revenue looks good. Currently everything is being driven by residential. It is
anticipated that by year end cost recovery will be 111%.
Ken Roth requested that DSD prepare a turnaround commercial time report for the DAB's review. Derek Horn stated that
a report is being developed and that one would be provided to the Board.
Water Services:
Barbara Koffron stated that there was not a quorum present to hold the meeting. The meeting will be rescheduled before
the next DAB meeting
Residential Fire Sprinklers:
Ken Roth stated that a meeting has not been scheduled yet and a meeting will be scheduled before the next DAB meeting.
By-Laws and Mission Statement:
Patricia Thornham stated that they met and reviewed the DAB By-Laws, Mission Statement, and Working Agreements.
A draft will be available for the Boards review at their October 2004 meeting.
Discussion/Information/Introduction of the new City of Phoenix Building Official:
Derek Horn introduced Tom Wandrie as the new City of Phoenix Building Official and stated that he began his new duties on
September 7, 2004.
Discussion/Information/Possible Action On the Financila Update for the Development Services Department:
This item was deferred to the October 21st DAB Meeting
Discussion/Information/Possible Action on the Salt River Project Fee Title and Easement Lands:
Jon Wendt discussed the significant number of projects in the Salt River Project (SRP) service area that have been
submitted with areas of encumbered land within the proposed, future City right-of-way. He stated that this presents
significant challenges to the City in the construction and future maintenance of infrastructures for the City of Phoenix.
After considerable discussion amongst affected City department, the City and SRP representatives have mutually agreed that
these conditions are not desirable by either party, and therefore, should be eliminated. The City of Phoenix created two
policies regarding all development proposals in the SRP service area.
The first policy, dated July 19, 2004 states that the City of Phoenix will not accept for platting any properties
that contain SRP fee title land within the City's rights-of-way, which includes water and sewer lines. If the customer
had a preliminary approval prior to July 1, 2004, which clearly shows SRP property in the right-of-way, then the City will
work with the customer on a case by case basis. The second point of this policy stated that the proposed right-of-way
crosses the SRP/USA fee property perpendicular and does not run parallel within the SRP/USA fee property.
Mr. Wendt stated that the second policy dated August 16, 2004 relates to the unknown aspect of the easements.
They were not conveyed by deeds, title reports, not shown on the preliminary plats that the City receives from customers.
This policy states that with the SRP service area, which is primarily centered in the Southwest part of Phoenix,
that the City receives an ALTA survey with that. Where it is discovered that USA, SRP, or others have title or
easements over land which is within the proposed future right-of-way of the City of Phoenix, such encumbrances
shall be removed prior to approval of plats or site plans by the City of Phoenix.
Motion was made by Pete Hemingway, seconded by Micael Fries, to approve the interim policies dated
July 19th, 2004 and the verification policy dated August 16, 2004. Motion carried unanimously.
Discussion/Inormation/Possible Action on the Water Miscellaneous User Fee Rates
Increase, City of Phoenix, Finance Department, Utilities Accounting Section:
Jeff Dewitt, Finance Department, presented a power point presentation on "Water Miscellaneous User Fee Updates."
Mr. Dewitt stated that the purpose of the water miscellaneous user fees is to recover the cost of a specific service
not common to all customers and to find this specific service from fees as opposed to water rates. He continued to
explain that the reasons for the increase is inflation of cost, change in work processes, to develop a policy of 100%
cost recovery for services, and the last increase was in February 2000.
He went through the presentation explaining where the water revenue is generated. He stated that the system is at
cost recovery in the Water Services Department. The rates are covering what is not being covered specifically from
these user fees.
The steps to implement these user fees are:
Presentation to the Development Advisory Board
Presentation to the Home Builders Association of Central Arizona
Presentation to the Natural Resources Subcommitte
Notice of Intent and Public Hearing
City Council Action
Impementation per Council Action
Miscellaneous User Fees are as follows:
Customer Service Fees - Fees relating to changes in billing status of water customers
Miscellaneous Fees - Fees for services provided that directly relate to the water distribution system
Connection Fees/New Service - Fees related to connecting a new customer's service line to the exting water distribution system
Mr. Dewitt stated they're recommending a 75% or a 100% 4-year phase in. Another option is that a policy can be set that there is only
a 75% cost recovery in this area and the rest of it would be funded by the rates. There will not be any increases until
March 2005.
Mr. Dewitt mentioned that this would be put in the code so that Council action would be approving the fees for each
of the dates. With inflation raising 2%, it's built into the figures so by January 2008 fees are not behind.
Ken Roth asked if there had been any studies done to see whether or not the private sector can do a better job on
installing meters to keep the private sector costs down and quicker installation. Dan Quay, Assistant Director,
Water Services Department, stated that Water Services is looking at a way to enhance certain things and this would
bring down the timing of installation. He stated that the number one complaint from the Homebuilders is that the
City cannot install the meters fast enough. They are reviewing ways in which they can respond faster to requests
from other service areas.
Ken Roth asked if the City used anyone from the private sector to install meters. Mr. Quay stated that the Water Services
Department completes all installations. He stated that a number of problems have occurred when Water Services has
used private contractors to install public facilities. Mr. Quay continued to say that they regularly use the
private sector to install water lines, sewer lines, etc.
Mr. Quay stated that one of the issues that Water Services would have to deal with if the private sector installed
water meters is the state law in terms of public bidding, etc. Mr. Roth is concerned with the cost of a meter of $2,500.
Mr. Dewitt stated that they have projected for the water systems in general, based on last year's
financial plan, 5% rate increases every year for the next ten years. This is what the financial plan shows.
Mr. Quay stated that packets are being put together of proposed service enhancements of the requested rate increase.
After a meeting with customers, four basic items were brought up to enhance service, those being:
Meter Installation
To speed up the review of sewer, water, and development plans
Development of and repayment agreements
Having as-builts available
Mr. Roth commented that he would like to see what it would cost for the private sector to do the private sector to do
the same work so that there is some comparison before a recommendation is made on this proposal. He stated that he
would not like to approve this without the opportunity for competitive activity. He mentioned that the costs seem
extremely high for putting in meters. Mr. Quay stated there has not been a cost recovery since 1988, so the comparison
is between 1988 to 2004.
Mr. Roth asked if the private sector could install water meters, if not, how can the City make this happen.
Mr. Quay stated that they have had some experience with having the private sector provide some of these services and the
experience using them have not been good. The quality of the work and some of their experience has caused problems and
has ended up costing the City more money. He continued saying that it would cost a lot more to go back and try to
recover for an error that was made in one of the installs. He stated that he could come to the DAB and speak about the
experiences the City has had with the private sector.
Motion was made by Ben Barcon, seconded by Paul Scott, that the Development Advisory Board (DAB)
recommends the 100% recovery. The DAB cannot attest to the costs, but the DAB agrees with the process.
The DAB encourages, not only the Water Services Department, but all departments within the City, to be as efficient
and economical as possible.
Mr. Roth stated that he would like to add that the private sector would have an opportunity to provide this same service on
a competitive basis. Mr. Barcon stated that he didn't think that this should be part of the motion. He suggested that
the DAB requests that the Water Services Department come back to the DAB with an update if they have considered the
private sectors and add this verbiage in the motion. Greg Russell agreed with this.
Amended Motion was made by Ben Barcon, seconded by Paul Scott,, that the Development Advisory Board (DAB) recommends that
the Water Services Department adopts 100% recovery on the transitional schedule starting in March 2005 and ending in
January of 2008. The DAB encourages the Water Services Department to explore every option in the City for increasing
efficiency and saving costs. Motion carried unanimously.
Mr. Roth stated that he is still uncomfortable with the motion not saying "private sector." After discussion,
Mr. Quay agreed to return to the DAB in a couple of months and walk them through, in detail, what happened in the
process with the private sector. He would like to present to the DAB how efficiently the Water Services Department
is making this process run smoothly.
Discussion/Information/Possible Action on the 2004 Elevator Code:
This item has been deferred to the October 21st DAB Meeting
Discussion/Information/Possible Action on the Appointment of a Chairperson for the DAB
Residential Sprinkler Subcommittee:
Ken Roth has be appointed chairperson for this subcommittee.
Discussion/Information/Possible Action on Development Services Department (DSD) Single Plan Review Process:
This item has been deferrred to the October 21st DAB meeting.
Request for Future Agenda Items:
None
Adjournment
Meeting ended at 5:05 p.m.
Respectfully submitted:
Derek Horn, P.E. CBO
DSD Deputy Director
Minutes Prepared by:
Carole Borrego, Secretary III
