NOTICE OF PUBLIC MEETING

TRANSPORTATION, INFRASTRUCTURE AND SUSTAINABILITY SUBCOMMITTEE

NOTE: SPECIAL DATE AND TIME

 

Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the City of Phoenix TRANSPORTATION, INFRASTRUCTURE AND SUSTAINABILITY SUBCOMMITTEE and to the general public, that the City of Phoenix TRANSPORTATION, INFRASTRUCTURE AND SUSTAINABILITY SUBCOMMITTEE will hold a meeting open to the public on Monday, November 9, 2009 at 9:00 a.m. located in the City Council Subcommittee Room, 12^th Floor, 200 West Washington Street, Phoenix, Arizona.

 

One or more board members may participate via teleconference. 

 

The agenda for the meeting is as follows (times are estimated and items may be discussed in a different sequence than posted):

 

1.	Call to Order	Peggy Neely, Chair
2.	Review and Approval of the October 8, 2009 Transportation, Infrastructure and Sustainability Subcommittee Meeting Minutes	Page 5
Items 3, 4, 5, 6, 7, 8 and 9 are for information only.  Although no presentations are planned, staff will be available to answer questions.
3.	Re-Review of Roadway Facility Development Impact Fees and “Infrastructure-Ready” Lots:  This report is in response to a request for staff to re-review the adopted Roadway Facility Development Impact Fees and analyze if the cost of land and the cost to build infrastructure is consistent with the current market; to discuss the issue with the Impact Fee Ad-Hoc Committee; and to report the findings to the Transportation and Infrastructure Subcommittee.  In addition, the report provides information regarding “infrastructure-ready” lots and their relationship to impact fees.  This item is for information only.	Debra Stark                   Page 13
4.	Ridership Analysis/Fare Increase:  This report provides information on the regional transit fare increase implemented on July 1, 2009 and potential impacts for the first quarter of the fiscal year on fare revenues, ridership and changes in fare media usage.  This item is for information only.	Debbie Cotton       Page 17
5.	Federally Mandated vs. Non-Federally Mandated Service:  This report provides information comparing the costs of federally-required services on Phoenix Dial-a-Ride with non-federally required service to meet Americans with Disabilities Act of 1990 complementary paratransit requirements.   This item is for information only.	Debbie Cotton       Est:  10 Minutes Page 21
6.	Senior Taxi Coupon Pilot Program:  The purpose of this report is to provide an update on the implementation of a senior taxi coupon pilot program.  This item is for information only.	Debbie Cotton     Page 23
7.	Bus Bench Memorial Program: This report provides information on a potential bus bench memorial program for Phoenix transit furniture.  This item is for information only.	Debbie Cotton     Page 25
8.	Village and Points of Pride Signage Update:  This report provides information to the Transportation, Infrastructure and Sustainability Subcommittee regarding the Village and Points of Pride signage update.  This item is for discussion and direction.	Debra Stark Wylie Bearup     Page 27
9.	Water Information Billing System:  This report updates the Transportation and Infrastructure Subcommittee on the status of the Customer Information System (CIS) Implementation Project.  This item is for information only.	Cynthia Seelhammer     Page 31
Items 10, 11 and 12 are for Consent.  Although no presentations are planned, staff will be available to answer questions.
10.	Development Services Ad Hoc Task Force Report:  This report transmits recommendations of the Task Force for consideration.  This item is for action.	Mark Leonard   Page 35
11.	Green Rail Corridor Demonstration Project-Scope of Work Changes:  This report requests Subcommittee approval to change the proposed Scope of Work to meet Energy Efficiency and Conservation Block Grant Program grant requirements.  This item is for action.	Tammy Perkins       Page 51
12.	Transit Furniture Advertising – Interim Agreement:  This report requests approval of an interim agreement for Transit furniture vehicle advertising with CBS Outdoor for the period of January 1, 2010 to December 31, 2010.  This item is for action.	Debbie Cotton     Page 53
DISCUSSION AND POSSIBLE ACTION ITEMS
13.	Greenbuild 2009 Partnership:  Representatives from the Greenbuild 2009 Arizona Host Committee will provide an overview of local activities in support of the November 11-13, 2009 International Greenbuild Conference at the Phoenix Convention Center.  This item is for information and discussion.	Tammy Perkins       Est:  5 minutes Page 55
14.	Bus Shelter and Vehicle Advertising Restrictions Update: This report updates the Subcommittee on bus shelter and vehicle advertising restrictions as requested at the October 8, 2009 Subcommittee meeting.  In addition, this report requests approval to change the current agreements that restrict advertising in certain zoned areas.  This item is for discussion and action.	Debbie Cotton         Est: 10 minutes Page 57
15.	Stormwater Management Program:  This report presents information and recommendations regarding the Storm Water Management Program.  It includes a review of the mandates from the new Arizona Pollutant Discharge Elimination System permit, resource requirements to meet new permit terms, program organizational structure and a recommendation to increase the storm water fee.  This item is for discussion and action.	Cathleen Gleason Wylie Bearup Cynthia Seelhammer Tauny Woo   Est: 10 minutes Page 59
16.	Proposed 2010-11 through 2014-15 Water Capital Improvement Program. This report provides a summary of the Five-Year Water Capital Improvement Program needed to support existing and future populations, maintain regulatory compliance, and provide for the rehabilitation and integrity of the water system and requests conceptual approval of the Water Services Department’s proposed Fiscal Years 2010-2011 through 2014-2015 Five-Year Water CIP.  This item is for discussion and action.	Cynthia Seelhammer             Est:  10 minutes Page 63
17.	Proposed 2010-11 through 2014-15 Wastewater Capital Improvement Program. This report provides a summary of the proposed Five-Year Wastewater Capital Improvement Program needed to support existing and future populations, maintain regulatory compliance, and provide for the rehabilitation and integrity of the wastewater system and requests conceptual approval of the Water Services Department’s proposed Fiscal Years 2010-2011 through 2014-2015 Five-Year Wastewater CIP.  This item is for discussion and action.	Cynthia Seelhammer               Est:  10 minutes Page 69
18.	2010 Water and Wastewater Financial Plans:  This report provides information concerning the financial requirements necessary to support the Water Services Department’s operations and Capital Improvement Program for 2010-2011 through 2017-2015 for the Water and Wastewater systems.  This item is for discussion and action.	Jeff DeWitt       Est:  10 minutes Page 75
19.	Solid Waste Fees and Service Levels:  This report discusses the Solid Waste enterprise fund status and options, and recommends a 1.9 percent increase ($0.50) in the monthly residential fee effective January 1, 2010 to maintain current service levels.  Staff requests that the Subcommittee recommend City Council approval of this recommendation or an alternative funding/expenditure option.   This item is for discussion and action.	Neil Mann           Est:  10 minutes Page 79
20.	Future Agenda Items:  This item is scheduled to give Subcommittee members an opportunity to mention possible topics for future Subcommittee agendas or to request City staff to follow-up on Subcommittee issues.
21.	Call to the Public:  Consideration, discussion and comments from the public; those wishing to address the Subcommittee need not request permission in advance.  Action taken as a result of public comment will be limited to directing staff to study the matter or rescheduling the matter for further consideration and decision at a later date.
22.	Adjournment

 

For further information, please call Jennifer Emerson, Management Assistant, City Manager’s Office, at 602-262-7684 or Albert Crespo at 602-261-8369.

 

Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying.  If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811. 

 

For reasonable accommodations, call Jennifer Emerson at Voice/602-262-7684 or TTY/602-534-5500, or Albert Crespo at 602-261-8369.as early as possible to coordinate needed arrangements.

 

Subcommittee Members

Councilwoman Peggy Neely, Chair

Councilman Sal DiCiccio

Councilman Claude Mattox

Vice Mayor Tom Simplot

 

November 5, 2009

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 2

 

Phoenix City Council

Transportation, Infrastructure & Sustainability Subcommittee

Summary Minutes

Thursday, October 8, 2009

 

City Council Subcommittee Room

Phoenix City Hall, 12^th Floor

200 West Washington Street

Phoenix, Arizona

 

Subcommittee Members Present                  

Councilwoman Peggy Neely, Chair                        Vice Mayor Tom Simplot

Councilman Sal DiCiccio                                         Councilman Claude Mattox

 

 

Staff Present                                                    Public Present

Ed Zuercher                           Penny Parrella                Howard May         Jim Coffman

Penny Parrella                       Kelly Dalton                     Jim Larson            Tom Killip

Kim Applewhite                     Blair Proctor                   Jeff Rosen           

Cynthia Parker                      Hope Schoebrodt          Jackie Ricker                  

Rebecca Godley                   Carol Johnson                Ed Fischer                       

Molly Monserud                     Mike Bornhoeft               DeNerika Ward   

Christine Smith                      Todd Mariscal                Wesley Harris

Joel Waggener                      Tom Byrne                      Bob Antila

Sandy Remy                          Felipe Moreno                Greg Gilliam

Marie Chapple                     Lauri Wingenroth            Steve Chatham

Melissa Sweinhagen            Joe Bowar                      Ben Limone

Charlene Reynolds               Jennifer Emerson          Jack Buschbacher

Albert Crespo                                                                Jack Gilcrest

 

 

1.  Call to Order

Chairwoman Neely called the meeting to order at 9:09 a.m. with Vice Mayor Simplot and Council members Mattox and DiCiccio present.

           

2.  Review and Approval of the August 27, 2009 Transportation, Infrastructure & Sustainability Meeting Minutes

      Chairwoman Neely motioned for approval of the August 27, 2009 minutes. Councilman Mattox seconded the motion, which passed 4:0.

 

3.   Phoenix 2010 General Plan Update

      This item was for information only.  No discussion took place.

 

4.   International Climate Action Map

      This item was for information only.  No discussion took place.

 

5.  U.S. Department of Energy Request for Information, Energy Efficiency Conservation Block Grant and Green Rail Corridor Demonstration Project Update

      This item was for information only.  No discussion took place.

 

6.  Solar America Cities Grant Application

      This item was for consent.  No presentation was planned. 

 

7.  Provisionally Accredited Levee (PAL) Agreement Letter

      This item was for consent.  No presentation was planned.

 

Chairwoman Neely motioned for approval of agenda Items 5 and 6.  Councilman Mattox seconded the motion, which passed 4:0.

 

8.  Phoenix City Hall 11^th Floor Balcony Green Roof Retrofit Demonstration Project Partnership

      Mr. Jim Coffman of the Arizona Chapter of the American Society of Landscape Architects (AZASLA) introduced the item.  Mr. Coffman described plans for a Phoenix City Hall 11^th Floor Balcony Green Roof Retrofit Demonstration Project.  He reviewed the proposed Green Roof design, describing proposed foliage and lighting plans for the project.  Mr. Coffman also discussed materials to be utilized for plant and foliage beds.

 

Councilman Mattox asked if AZASLA explored ideas for increasing shade on the balcony.  Mr. Coffman replied the project team had explored the idea of adding shade, but noted the difficulty of adding shade while maintaining a low level of impact to the building.

 

Councilman Mattox questioned if it was possible to install awnings for additional shade.  Mr. Coffman responded wind was a concern with awnings, noting the high winds experienced on the 11^th floor balcony.  He added awnings would also obscure the view of the balcony from street level.

 

Councilman Mattox asked if AZASLA considered seeking support from Matt Moran to obtain donations of copper for the plant/flower beds.  Mr. Coffman responded he would look into the possibility of such a contribution.

 

Chairwoman Neely asked if AZASLA’s goal was to finish the project by 2012, questioning if AZASLA intended to formulate a financing plan first, then return to Council with an implementation proposal.  Mr. Coffman responded affirmatively, noting plans to showcase the design concept at the U.S. Greenbuilding Conference in November 2009 and completion of the project by 2012.

 

Chairwoman Neely asked how flowers and foliage would be displayed on the balcony.  Mr. Coffman replied foliage would be displayed in raised planters.

 

Chairwoman Neely expressed concern for roof leakage by plant irrigation systems.  Mr. Coffman stated a special membrane coating would be added to the roof to prevent leakage.

 

Chairwoman Neely asked if AZASLA was aware of funding considerations for the project.  Mr. Coffman explained AZASLA understood the project would rely solely on fundraising and in-kind contributions.

 

Councilman DiCiccio noted project partners and contributors should be recognized on a dedication plaque on the balcony.  Mr. Coffman indicated a dedication plaque was being considered for the project.

 

Chairwoman Neely asked if the project would contain an educational component for visitors.  Mr. Coffman replied yes, stating informational cards would be displayed next to plants and foliage.

 

Mr. Jack Gilcrest of AZASLA stated the project team would update the design concept and then wait to assess donations before proceeding with implementation.  He noted project development would proceed incrementally, with AZASLA providing regular updates and obtaining approvals through Subcommittee and Council as needed.

 

Chairwoman Neely motioned for approval of the item.  Vice Mayor Simplot seconded the motion, which passed 4:0.

 

9.  Third Street Promenade

      Deputy City Manager Ed Zuercher introduced the item, noting that no City funds were being utilized for the project.  Mr. Zuercher then introduced Street Transportation Director Wylie Bearup.

 

Mr. Bearup provided information regarding the design of future pedestrian improvements on 3^rd Street from Indian School Road to McDowell Road (3^rd Street Promenade).  Mr. Bearup requested authorization to continue the 3^rd Street Promenade design efforts.

 

Councilman Mattox asked why the 3^rd Street Promenade project only extended to McDowell and not into Downtown Phoenix.  Mr. Bearup replied extending to Downtown Phoenix was not initially considered by the group who brought the project forward.

 

Chairwoman Neely stated the 3^rd Street Promenade project was an interesting idea, noting the project team should consider partnering with the Downtown Phoenix Partnership (DPP), as DPP was currently working on implementing improvements to downtown gateways and streetscapes.  Mr. Bearup acknowledged such a partnership was a possibility.

 

Chairwoman Neely requested Street Transportation staff work in conjunction with Community and Economic Development Department to coordinate project activities.

 

Councilman DiCiccio expressed his support for the project, noting the feasibility of the project and the potential for significant collaboration between City departments.

 

Vice Mayor Simplot expressed concern for the project, noting the potential for significant improvements north of 3^rd Street without improvements to the southern half of the street.

 

Councilman Mattox added that landscaping efforts should also be directed to improving the southern half of 3^rd Street.

 

Chairwoman Neely requested staff continue designs for the 3^rd Street Promenade and return to the Subcommittee with additional recommendations for the project.

 

Councilman Mattox asked that staff collaborate with the Downtown Phoenix Partnership to implement improvements.

 

Chairwoman Neely motioned for approval of the item.  Vice Mayor Simplot seconded the motion, which passed 4:0.

 

Mr. Howard May asked if the pedestrian improvements would affect the bike route on 3^rd Street.  Mr. Bearup replied efforts would be taken to minimize the impact to existing bike routes.

 

10.  Bus Shelter Advertising Restrictions

Mr. Zuercher introduced the item, stating bus shelter advertising generated approximately $2.5 million in revenues for bus service, noting revenue from advertising was shrinking.  He then introduced Assistant Public Transit Director Lauri Wingenroth.

 

Ms. Wingenroth described current bus shelter advertising restrictions, noting current policy prohibited non-commercial advertising.  Ms. Wingenroth explained restrictions on non-commercial advertising mitigated implications from potentially controversial advertising messages.

 

Councilman DiCiccio stated the City had dealt with bus shelter advertising issues during the 1990s.  Mr. Zuercher added the City’s loss of a landmark lawsuit during that time perpetuated its current policy stance on bus shelter advertising.

 

Ms. Wingenroth deferred to Management Assistant Kimmerly Applewhite for additional information on advertising restrictions.  Ms. Applewhite stated the Public Transit Department sought to lift some restrictions on bus shelter advertising to enhance the potential for greater revenue generation.  Ms. Applewhite also reviewed district areas which currently prohibit bus shelter advertising.

 

Chairwoman Neely commented lifting restrictions would provide greater opportunities for advertising and provide additional revenue for bus services.

 

Councilman Mattox asked if advertising restrictions had been lifted or lessened in the past.  Mr. Zuercher replied no, noting it was a new approach being undertaken by Public Transit.

 

Chairwoman Neely suggested examining major arterial streets for revising and implementing new advertising policies.  Ms. Neely recommended addressing advertising by street versus zoning classification.

 

Mr. Mattox commented on the possibility of revenue generation mitigating the potential need for bus route cuts in the future.

 

Chairwoman Neely commented on advertising limitations, stating liquor advertising should continue to be prohibited in school zones.  Ms. Applewhite stated the Public Transit Department is researching beer and wine advertising, noting such advertising would be carefully implemented.

 

Vice Mayor Simplot requested an analysis of revenue based on the advertising changes.  Ms. Applewhite stated Public Transit would compile an analysis and present it to Subcommittee.

 

Councilman Mattox asked if there were differences in revenue for beer and wine advertising.  Ms. Applewhite responded, yes, stating some categories of advertising could generate more revenue.  Ms. Applewhite added public service announcements would continue to be prohibited, noting such advertising proved difficult to regulate.

 

Councilman Mattox requested an update on the status of the bus shelter advertising contract.  Ms. Wingenroth stated the Public Transit Department was currently developing the RFP to present to Council during a Formal Session.

 

Councilman Mattox inquired about advertising procurement practices.  Mr. Steven Chatham suggested in light of economic circumstances and declining revenues, the current advertising contract should be extended while City staff works on releasing an RFP as soon as possible.

 

Councilman Mattox asked if a six-month contract extension was sufficient to allow time for the generation of an RFP.  Ms. Wingenroth responded affirmatively, noting an RFP could be released within two months.

 

Chairwoman Neely supported the idea, adding an extension would serve as a trial period before the release of the RFP.

 

Councilman Mattox supported enacting a longer extension while releasing the RFP simultaneously.  Mr. Zuercher noted Federal Regulations could prevent enacting a contract extension longer than six months.  He requested additional time for Public Transit staff to review Federal Transit Authority regulations and consider possible courses of action.

 

Chairwoman Neely recommended Public Transit staff review advertising options and return to Subcommittee with suggestions for action.

 

11.  Update on the American Recovery & Reinvestment Act

Mr. Zuercher introduced the item, stating unspent stimulus funds needed to be reallocated or risked being reverted back to the Federal Government.  Mr. Zuercher noted first quarter reporting for ARRA funds was due by Saturday, October 10, 2009.  He stated all formula grants were accounted for and applications for discretionary grants were submitted, acknowledging one grant for the Green Rail project grant was still pending.

 

Chairwoman Neely commented on a recent news article regarding the amount of stimulus funds being spent on project consultants, noting the public’s adverse response to how the funds were being utilized in such instances.

 

Vice Mayor Simplot left the meeting at 10:52 a.m.

 

Mr. Zuercher stated staff was looking into additional opportunities to spend the excess ARRA funds that may be available.

 

Councilman DiCiccio commented on the possibility of rubberizing the pavement at 44^th Street and Camelback Road.  Mr. Bearup commented such improvements were a possibility, depending on Arizona Department of Transportation (ADOT) considerations.

 

Vice Mayor Simplot rejoined the meeting at 10:55.

 

Chairwoman Neely stated it would be interesting to see where ADOT chose to reallocate excess funds.  She requested staff keep Council informed of any progress.

 

12.  Update on Petitioning and Consensus Guidelines Used for

  Neighborhood Traffic Mitigation Programs

         Mr. Wylie Bearup introduced the topic, noting the Street Transportation Department had been involved in numerous traffic calming programs.  Mr. Bearup stated collector street mitigation activities served to enhance quality of life for many City residents.  Mr. Bearup described consensus requirements for such mitigation measures, noting the 100 percent and 70 percent consensus rules for installation of various traffic controlling techniques in neighborhoods.  Mr. Bearup deferred to Traffic Engineer Kerry Wilcoxon for specific details about the measures.

 

Mr. Wilcoxon provided an update on current practices used by the Safety and Neighborhood Traffic section of the Street Transportation Department. Mr. Wilcoxon stated the consensus rules received positive feedback from neighborhood residents.

 

Vice Mayor Simplot commented the 70 percent rule allowed for significantly more subjectivity in implementing mitigation devices, noting the potential for boundaries to be defined too broadly.

 

Councilman DiCiccio commented that some traffic mitigation devices had the potential to become problematic if placed awkwardly.

 

Vice Mayor Simplot acknowledged the need for neighborhood input to define boundaries for such devices.

 

Chairwoman Neely recommended using citizen input for implementation of traffic mitigation techniques, suggesting staff present such cases to village planning committees for additional input.

 

Vice Mayor Simplot agreed, noting staff could present the case to the neighborhood villages, which would allowin residents to make suggestions and provide input into the process.

 

Mr. Wilcoxon stated the Street Transportation Department would try to make the petition boundaries as large as possible for 70 percent consensus considerations.

 

Mr. Ed Fischer stated he supported decreasing the 100 percent consensus rule, noting problematic traffic issues at his residence along 7^th Avenue and Coral Gables.  Mr. Fischer noted traffic mitigation implementation efforts were blocked by one signature in his community.

 

Chairwoman Neely left the meeting at 10:20 a.m.

 

Mr. Wilcoxon stated the 100 percent consensus guideline could be blocked by just one signature.  Mr. Wilcoxon added available traffic mitigation options for such a neighborhood included adding a traffic circle, strategic island placement, and/or street widening, noting areas with demonstrated traffic/vehicle accidents did not need neighborhood consensus for traffic mitigation program implementation.

 

Chairwoman Neely rejoined the meeting at 10:25 a.m.

 

Chairwoman Neely asked staff to research the situation further and return with a recommendation, noting Coral Gables could potentially need redesigned.   Ms. Neely also advised staff to obtain input from the local village planning committee.

 

Mr. Wesley Harris expressed support for the City’s traffic mitigation efforts.

 

Vice Mayor Simplot noted the potential need to move the issue to the policy level to make changes and suggested involving Councilman Gates’ participation in the discussion.

 

Chairwoman Neely commented on the need for a variety of traffic mitigation measures, noting one specific measure does not fit all types neighborhoods.

 

Councilman Mattox expressed support for a variance to the 100 percent consensus rule, adding he would also like additional input from the local village planning committee.

 

Councilman DiCiccio expressed support for involving village planning committees in the decision making process, noting input and recommendations could then be elevated to Council for consideration.

 

Chairwoman Neely advised staff to obtain additional input from the community and return with a recommendation, adding the recommendation would then be submitted to Council.

 

13.  Future Agenda Items

  A list of possible future agenda items was distributed.

 

14.  Call to the Public

      Ms. Jackie Rickert and Mr. Jeff Rosen informed the Council about their intent to develop a proposal to enhance City transportation for individuals with disabilities.  Ms. Rickert stated that the transportation proposal would help the City overcome obstacles to serving the disabled community. 

       

15.  Adjournment

Chairwoman Neely adjourned the meeting at 10:40 a.m.

 

Respectfully submitted,

 

     Albert Crespo

     Management Intern         

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 3

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
FROM:	Debra Wilkins Stark AICP Planning Director
SUBJECT:	RE-REVIEW OF ROADWAY FACILITY DEVELOPMENT IMPACT FEES AND “INFRASTRUCTURE-READY” LOTS

 

This report is backup to the November 9, 2009, City Council Transportation, Infrastructure and Sustainability Subcommittee meeting.

 

THE ISSUE

 

On May 6, 2009, Councilwoman Neely issued a memo that requested, in part, staff re-review the adopted Roadway Facility Development Impact Fees.  In particular, the request was to analyze if the cost of land and the cost to build infrastructure is consistent with the current market; to discuss the issue with the Impact Fee Ad-Hoc Committee; and to report the findings to the Transportation and Infrastructure Subcommittee.

 

In addition, the memo requested information regarding “infrastructure-ready” lots and their relationship to impact fees.

 

OTHER INFORMATION

 

Re-Review of Roadway Facility Impact Fees

 

Revised Roadway Facility Development Impact Fees were adopted on March 4, 2009, and went into effect on May 18, 2009.  However, City Council adopted a phasing plan for the gradual implementation of the fees, which is as follows:

 

·        25% of the Net Impact Fee shall be assessed through September 5, 2010.

·        50% of the Net Impact Fee shall be assessed from September 6, 2010 through March 6, 2011.

·        75% of the Net Impact Fee shall be assessed from March 7, 2011 through September 4, 2011.

·        100% of the Net Impact Fee shall be assessed from September 5, 2011 onward.

 

However, the State Legislature has since implemented a moratorium on any increase in Development Impact Fees until July 1, 2011.  Therefore, the first phase of implementation—25% of the fees adopted---will be extended until July 1, 2011. 

 

On July 29, and September 2, 2009, a re-convened Impact Fee Ad-Hoc Committee met to discuss these issues at both meetings.  The Ad-Hoc Committee concluded, any further re-review of the Roadway Facility Development Impact Fee was not necessary, as the adopted phasing was sufficient to lower fees in the short term.  In addition, the Committee felt the extension of the first phase of implementation (25%) of the Roadway fee for an additional 10 months due to the moratorium was sufficient to address concerns regarding any previously unanticipated decreases in land and construction costs.

 

Infrastructure-Ready Lots

 

Debra Stark, Planning Director, led a discussion with the Impact Fee Ad-Hoc Committee on July 29, 2009 regarding this issue.  It was generally agreed there are currently quite a few lots which could be considered “infrastructure-ready”; meaning, they are physically connected to completed roads and utility lines.  This is true for both residential lots and commercial centers where “pads” for future buildings have been designed and graded.

 

However, there was also general agreement impact fees do NOT fund the type of infrastructure that makes lots “infrastructure-ready” by this definition.  Local streets and utility lines within subdivisions; adjacent perimeter arterial half-streets, water and sewer connections, etc. are, and remain, the responsibility (both in terms of construction and financing) of developers.

 

Instead, impact fees fund regional infrastructure improvements and facilities in growth areas whose demand is created only by new development.  Many of these projects are so large (bridges, water and wastewater treatment plants; regional parks, fire and police stations) that one developer could not reasonably be asked to construct and/or pay for an entire impact fee-funded facility.  Instead, by paying impact fees, each developer pays a proportionate share of the future facilities identified for construction in the City’s adopted Infrastructure Financing Plan.

 

If developers of “infrastructure-ready” lots in the City’s growth areas did not pay impact fees, many regional infrastructure projects—needed solely for the benefit of the developments in the growth areas—would have to be funded by other sources, such as property taxes and utility rates.  In the past, distributing the costs of new infrastructure required for the growth areas among all City taxpayers has not been the method by which such infrastructure has been funded.

 

RECOMMENDATION

 

This report is for information purposes only.

 

Attachment

 Transportation and Infrastructure Subcommittee, November 9, 2009 Item 4

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	REPORT ON THE TRANSIT FARE INCREASE

 

This report provides information on the regional transit fare increase implemented on July 1, 2009, and potential impacts from the first quarter of the fiscal year on fare revenues, ridership and changes in fare media usage.

 

THE ISSUE

 

The Public Transit Department coordinated a fare increase with the Regional Public Transportation Authority (RPTA) that was implemented on July 1, 2009.  Changes in ridership and fare type usage were anticipated in the consultant’s revenue estimate.  Consistent with input from the revised effort and Phoenix community budget hearings, a single ride local fare was increased $0.50, transit passes were increased by various amounts in relation to the single ride fare, discounts were offered for off bus purchase of All Day passes and several new fare products were added to the fare structure.     

 

OTHER INFORMATION

 

It is important to note that it is premature to project the full impact of the fare increase on revenue or ridership.  However, fare revenue is lagging well behind the anticipated increase of more than 40 percent.

 

The following information highlights fare revenue, fare type usage, and ridership changes.

 

Fare Revenue

 

A comparison of fare revenue collected on the prior and current year is as follows:

 

Fare Revenue	Prior Year-To-Date	Current Year-To-Date	% Change
Cash Collected on the Bus	$4,398,177	$2,965,428	(32.6%)
Total Fare Revenue Collected*	$8,538,538	$9,607,481	12.5%

 

* Total revenue may be understated due deferred billing agreements for fare media provided to new retail outlets set up in late June.  Deferred billing agreements ended on September 30, 2009. 

 

The price of the All Day pass purchased on the bus increased from two (2) times the one-ride fare to three (3) times the one-ride fare.  The pass is offered at a discount off the bus, and many customers are now purchasing All Day passes at retail outlets, resulting in a reduction of cash being accepted on the bus and more efficienct loading of passengers.

 

Due to a surge of fare media purchases prior to the increase, it is anticipated that the overall annual revenue increase will be higher than in the first quarter of this fiscal year.  As an incentive, new retail outlets were offered a deferred billing arrangement on fare media through the end of September 2009.  The revenue from these deferred billing arrangements is not reflected in the first quarter of the fiscal year revenue.      

 

Fare Type

 

Changes in fare type used is as follows:

 

Fare Type	Prior  Year-to-Date *	Current Year- to-Date *	% Change
Bus and Rail:
One-Ride Fare	820,562	973,740	18.7%
Day Pass on Bus Purchase	1,969,389	393,595	(80.0%)
Day Pass off Bus Purchase	150,247	504,603	235.8%
7 Day Pass	5,444	18,905	247.3%
31 Day Pass	77,175	76,774	(0.5%)
Phoenix Dial-a-Ride:
Cash Fare	$69,598	$99,937	43.6%
10 Ride Ticket Book	N/A	29	N/A
20 Ride ticket Book	N/A	23	N/A
Monthly Dial-a-Ride Pass**	1,991	1,705	(16.8%)
Regional Dial-a-Ride Tickets**	52,220	96,610	85.0%

*   First quarter of FY 2008-09 compared to the first quarter of FY 2009-10.

** Last quarter of FY 2008-09 compared to the first quarter of FY 2009-10.

 

Data indicates some customers are now using two one-ride fares for a round trip instead of purchasing an All Day pass.  

 

Fare changes increased the number of customers purchasing All Day passes off the bus and seven (7) day passes, while 31 day pass purchases remained essentially flat.  The seven (7) day pass now costs the same as while the five single All Day passes., essentially the customer receives two free days.  The 31 day pass offers the most convenience and value, some customers may not be willing or able to pay $55 in advance.  Finally, Monthly Dial-a-Ride (DAR) pass sales have declined, likely due to the price increase and some customers switching to the new DAR ticket books or paying for one ride at a time. 

 

Fare Outlets and Products

 

In anticipation of the shift in demand from purchasing All Day passes on the bus to retail outlets, the number of retail outlets was increased region-wide.  The number of retail outlets has increased from 99 to 184, and retail outlets and transit centers have seen a significant increase in pass sales since the July 1 fare increase.  Existing outlets began offering more popular passes, such as All Day and 31 day passes.  Also, a five pack of All Day passes was introduced for the convenience of customers and retail outlets. 

 

Additionally, the purchase of fare media through the Valley Metro Web page has been well-received by customers since its inception.  Orders increased by 12.2 percent since July 1st.

 

Ridership

 

A comparison of ridership from the prior and current year-to-date is as follows:

 

Transit Service	Prior  Year-to-Date *	Current Year- to-Date *	% Change
Bus and Rail:
Phoenix Only	12,505,749	11,170,973	(10.7%)
Non-Phoenix	3,865,561	5,078,961	31.4%
Total	16,371,310	16,249,934	(0.7%)
Phoenix Dial-a-Ride:
ADA Scheduled Trip**	75,080	69,557	(7.9%)
Non-ADA Same Day Trip**	18,250	17,562	(3.9%)
Total	93,330	87,119	(7.1%)

*   First quarter of FY 2008-09 compared to the first quarter of FY 2009-10.

**  Denotes single one-way trip.

 

Ridership declined in Phoenix for the first quarter of the fiscal year.  The decline may be attributable to several factors, including service reductions in January 2009, the July 1 fare increase, falling gas prices, and rising unemployment.  Comparing Phoenix ridership for July to September 2009 to the same period in 2008 when gas prices peaked, there is a net ridership reduction of (10.7 %).  When comparing 2009 to the same period in 2007 before gas prices increased, there is only (0.3%) reduction.

 

Ridership and the amount of transit service available outside Phoenix has been increasing, while Phoenix has been reducing service.  It is likely the factors above have contributed to the reduced ridership in Phoenix.  Ridership on Phoenix Dial-a-Ride also has declined and may be attributable to some customers using bus or light rail, while for others the higher fare has reduced the number of trips taken or they have combined trips.    

 

National Transit Ridership Trends

 

The American Public Transportation Association (APTA) Transit Ridership Report for the period ending June 30, 2009 includes the following information about the economy and the impact on ridership trends in the first half of the calendar year. 

 

●          According to the Bureau of Labor Statistics, job losses accelerated throughout the first half of 2009, reaching 9.4 percent.  Fifty-nine percent of all rides on public transportation are taken to commute to and from work so it is no surprise that job losses have affected ridership.

 

●          Public transportation use in the second quarter of the year dropped 4.14 percent with the average drop year to date of 2.6 percent.    

 

●          Factors also contributing to the ridership decline are the service cuts and fare increases many public transit systems have been forced to make.

 

●          47 percent of agencies reported both raising fares and cutting service to address funding shortfalls.

 

RECOMMENDATION

 

This item is for information only.

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 5

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	federally mandated AND non-federally mandated PARATRANSIT service

 

This report provides information on possible cost savings realized by restructuring service on Phoenix Dial-a-Ride (DAR) to strictly comply with the Americans with Disabilities Act of 1990 (ADA) complementary paratransit requirement.  This item was requested at the August 27, 2009 Transportation, Infrastructure and Sustainability Subcommittee meeting.

 

THE ISSUE

 

With the passage of the ADA, transit agencies are required to provide persons whose disabilities prevent them from accessing or navigating the local bus and rail system a comparable parallel transit, or paratransit, service.  The service is required to operate the same days and hours as local bus and rail and be available within a three-quarter mile corridor of local bus routes and rail stations.  Individuals are required to go through a certification process to determine if they are fully or partially eligible for the service.  Service is to be reservation-based from 14 days up to 1 day in advance of a trip request. 

 

OTHER INFORMATION

 

Since 1995, the beginning of ADA Paratransit service (DAR) in Phoenix, the decision was made to include additional services above and beyond the base requirements.  The current service area, which is the incorporated Phoenix boundaries south of Jomax Road, exceeds the three-quarter mile requirement.  Phoenix Dial-a-Ride provides same day transportation to persons with disabilities and seniors, an uncommon practice compared to transit agencies of equal size nationally.  Hours of operation also exceed the current local bus service hours, which were reduced as a cost savings measure on December 29, 2008. 

 

As requested, staff has reviewed the preceding areas and drafted the following annual alternatives if Phoenix Dial-a-Ride services were changed to the strict federal ADA complementary paratransit service requirement.  The estimated cost savings are based on FY2010 service rates.  In addition, the trip reduction and fare revenue loss estimates have been calculated using projections based on current ridership trends.  It should be noted that this is for illustrated purposes only.  No recommendations are being made.  This provides comparative information.

 

ALTERNATIVES

 

A.      Match weekday bus operating hours of 5 a.m. to 10 p.m. (Estimated cost savings $220,000)

 

This alternative would change DAR weekday operating hours, which are currently 5 a.m. to midnight, to 5 a.m. to 10 p.m. to match local bus service.  This represents an average of 14 trips per day.  Staff this equals 6,450 service hours annually.

 

B.      Matched the require three-quarter mile fixed route corridor

(Estimated cost savings $53,000)

 

This alternative would reduce the current DAR service area by up to approximately 60 square miles, depending on proposed fixed route service reductions, and eliminate trips currently provided in the northern and southernmost areas of the city.

 

This would represent an average of five trips per day.  Staff estimates this equals 1,640 service hours annually.

 

C.      Same-Day DAR service (Estimated cost savings $ 830,000)

 

The City provides an average of 72 trips per day.  The average trips per day estimate is based on current usage of same-day service by ADA certified passengers.  Staff estimates this equals 25,342 service hours annually.  This change will provide a potential for better planning and utilization of resources.

 

RECOMMENDATION

 

This report is for information only.

 

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 6

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	senior taxi coupon pilot program

 

The purpose of this report is to provide an update on the implementation of a senior taxi coupon pilot program.

 

THE ISSUE

 

At the April 15, 2009 City Council Formal meeting, Councilmembers suggested reviewing the option of providing seniors with vouchers unrestricted by city boundaries that would allow them to take a taxi in lieu of Phoenix Dial-A-Ride.  Staff researched examples from other agencies that addressed alternative transportation for this target population.  Subsequently, the Transportation and Infrastructure Subcommittee authorized initiation of a senior taxi coupon pilot program on June 10, 2009.

 

On December 1, 2009, the Public Transit Department, through a contract with MV Transportation, will initiate a 19-month pilot program to test the effectiveness of providing a taxi subsidy program.  The program, tentatively called Senior Cab, will provide an additional transportation option for City of Phoenix residents who are 65 years and older.  Currently, the only door-to-door public transit option for this target population is Phoenix Dial-a-Ride, which gives priority to persons with disabilities who are certified under the Americans with Disabilities Act (ADA) paratransit requirement.  As a result, persons 65 and older who are not ADA certified are subject to limited transportation resources.  Senior Cab will be designed to offer a transportation option to this target population, in addition to Reserve-a-Ride and bus and rail services.

 

OTHER INFORMATION

 

Participants will go through an application process to verify their age and residency.  Once eligible, they will be able to purchase up to four (4) books of ten coupons on a monthly basis at 30 percent of their full value, or $3 for each book of ten $1 coupons.  The coupons can be used for trips with any participating taxi company in the greater Phoenix area.  There will be no jurisdictional restriction on travel.

 

Community Outreach Efforts

 

During the pilot phase of Senior Cab, targeted marketing will be employed to keep demand and supply in balance.  Staff will promote the program to senior residences, including Chris Ridge, Eastern Star, Beatitudes and Chicanos Por La Causa, and senior day care centers such as The Foundation for Senior Living, through marketing materials and presentations.  The Area Agency on Aging will receive information on the program for the Senior Help Line as will Community Information and Referral, a 24-hour help hotline and online directory.  Presentations will be scheduled during the City of Phoenix Human Services Department Senior Services Advisory Committees at each of the City-operated senior centers. Public Transit Department Public Information staff will distribute information to media outlets, post the information on the City of Phoenix and Valley Metro Web sites, and promote the program via new social media outlets, such as Twitter.

 

Program interest letters will be sent to taxi companies in the greater Phoenix area, including those companies already participating in the dialysis and employment taxi subsidy programs, and private and non-profit transportation providers, such as Super Shuttle, Comtrans, and Safe Ride.

 

Funding in the amount of $50,205 is available in the FY2010 Public Transit Department Operations budget for the first seven months of the program.  Staff has also applied for federal Section 5317 New Freedom funding.  The New Freedom grant program was created to make federal funding assistance available to agencies for transportation programs that go beyond the requirements of the ADA.  If successful, the City would receive federal funding in the amount of 50 percent of the total cost of the 19-month pilot program.  This will not impact the General Fund.

 

RECOMMENDATION

 

This report is for information only.

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 7

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	BUS BENCH MEMORIAL PROGRAM

 

This report provides information on possible implementation of a bus bench memorial program for Phoenix transit furniture.

 

THE ISSUE

 

The Public Transit Department was asked to research options to provide the opportunity for individuals to sponsor transit furniture in honor or memory of an individual(s).  Historically, the Public Transit Department has imprinted only commercial advertising on transit furniture. 

 

OTHER INFORMATION

 

The Public Transit Department researched other departments and agencies who have already implemented similar programs or concepts.  The attached chart illustrates those programs.

 

There are costs associated with such a program.  In addition to the cost of the transit furniture, equipment installation and plaque, it is estimated an additional 360 staff hours would be required to manage the program.  Staff hours would include: inspections, coordination and facilitation of proposed locations, database administration, maintenance, replacement, and refurbishment.

 

Staff will return within the next 90 days to seek guidance on the potential implementation of a bus bench memorial program for Phoenix transit furniture.

 

RECOMMENDATION

 

This report is for information only. 

 

 

Attachment

 

Name	Sponsoring Agency	Guidelines	Operation & Maintenance
Living Tree Celebration   (Program discontinued due to budget cuts)	City of Phoenix Parks & Recreation	·    Sponsor selects size of tree ·    Sponsor has option to select where tree is planted ·    Option to purchase plaque ·    Select species of tree ·    Standardized plaque with text limitations	·    Tree considered donation to park ·    Sponsor pays for delivery and cost for planting tree ·    Parks reserves the right to place tree where needed ·    Department responsible for maintenance ·    Plaque must be cleaned daily ·    Damaged or dead trees are removed ·    Plaque must be mounted on concrete
Adopt a Highway	Arizona Dept. of Transportation	·    Arizona businesses pay maintenance provider to remove litter ·    Sign placed with sponsor name ·    Area is one direction in a two mile increment ·    Permit good for one year, renewable up to two years	·    Sponsor assumes all maintenance costs ·    Maintenance providers are certified by State ·    Only covers litter no construction
Adopt-A-Stop   (Program never implemented)	City of Phoenix Public Transit	·    Anyone can join ·    One year commitment ·    Pick up litter at bus stop once a week	·    Trash removed in high traffic areas ·    Community partnership ·    Liability Concerns
Adopt-A-Stop	Durham Area Transit Authority and Keep Durham Beautiful	·    Individual chooses stop and contacts agency to see if available ·    Individual signs an agreement, obtains work logs, safety materials, and supplies from agency ·    Bus stop is cleaned once a month ·    Individuals do not clean graffiti ·    Receive free bus pass each month ·    Sign recognizing volunteer work at stop	·    Community partnership ·    All items supplied by agency ·    Eyes and ears of community ·    Reduces cleaning cost to transit authority
Bus Bench Memorial   (Under consideration)	City of Phoenix Public Transit	·    Sponsor selects approved location ·    Sponsor assumes cost for furniture, installation, and removal if required ·    Various sponsorship levels:   Option A: Bus shelter and trash can  $4,815   Option B Bus bench and trash can  $1,061: ·    Sponsor pays standardized plaque fee ·    City responsible for maintenance	·    Community partnership ·    Public Transit reserves the right to replace furniture when needed ·    Use existing furniture, whenever possible ·    Modify contract to include plaque ·    Replacement if damaged ·    Duration of dedicated furniture

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 8

CITY COUNCIL REPORT
TO:	David Cavazos, Ed Zuercher, David Krietor Deputy City Managers
FROM:	Debra Wilkins Stark AICP Planning Director Wylie Bearup, PE, PhD Street Transportation Director Deborah D Sedillo Dugan Public Information Director
SUBJECT:	VILLAGE AND POINTS OF PRIDE SIGNAGE UPDATE

 

This report provides information to the Transportation, Infrastructure and Sustainability Subcommittee regarding the Village and Points of Pride signage update.

 

THE ISSUE

 

The Planning Department received a request from two Council members asking staff to review the issue of replacing Village and Points of Pride signs due to their poor condition.  Information was acquired from the Street Transportation Department and the Public Information Office to provide the analysis below. 

 

OTHER INFORMATION

 

Village Identification Signs:

 

The city of Phoenix urban villages are identified by entry signs.  These were first manufactured and installed by an independent contractor in the early 1990s in order to define the boundaries and promote the unique character of each village.  Each Village Planning Committee voted on the graphic pictures for their village sign and identified approximately 12 locations for signs in their villages, with less developed villages receiving fewer signs.  Since that time, many of the signs have been damaged or removed. 

 

In 2006, the Planning Department began to work with the Public Information Office to conduct an inventory to determine the condition of the village signs.  After the inventory was completed, it was determined that sign repair and replacements could not be carried out due to budget reductions.  A new inventory was recently completed by the Street Transportation Department.  It indicates that, of the original 168 village signs, 64 percent are missing and 21 percent are in extremely poor condition.  The remaining 14 percent range from poor to good condition and only two of the signs (1 percent) are considered to be in good condition. 

 

An exception is in Maryvale where, in the spring of this year, the village received new village signs.  The West Phoenix Revitalization Area Citizens Advisory Board chose to use dedicated WPRA Street bond monies to replace these signs.  Because the new inventory of existing village signs indicates that most village signs are missing or in poor condition, there is interest in replacing at least some of the signs in the other villages. 

 

The cost of replacement is approximately $1,000 per village sign which includes both fabrication and installation by the city.  Although the original artwork is not available, the city can provide a similar graphical reproduction of the original sign, but not an exact replica.  Since the original signs were manufactured, technology has improved.  The sheeting used to fabricate the signs is of higher quality and this adds to the longevity of the signs.  In addition, a clear graffiti film can be added to each sign, which also delays fading and makes it easier to clean the signs.

 

Points of Pride Signs:

 

In addition to village signs, there are approximately 32 Points of Pride signs used to identify both public and private landmark sites, parks, cultural facilities and mountain peaks throughout the city.  New sites are added if they qualify by public votes.  Some sites may be discontinued or removed, such as Pappas School. 

 

Currently, the city pays for the first sign used for a new Point of Pride site.  The cost is approximately $300 per sign.  This does not include installation of the sign and post which is paid for by the associated facility.  The PIO office conducts a selection process for up to three new sites every four years.  Budgeting a total of $250 per year would cover the cost for any new signs.

 

The cost of sign maintenance and replacement is covered by the associated facility.  The PIO office works with Budget Signs to provide this service.  Each facility also pays for any additional signs that they might want for their site. 

 

No funding source is available for any of these signs at this time.  However, if a funding source can be identified, several options are available for consideration:

 

·                    Remove 55 original village signs that are classified as in “poor” condition as soon as possible.  There is a removal cost of $70 per sign for a total cost of $3,850.

·                    Design, fabricate and install new village signs at a cost of $1,000 per sign at 12 (or less) locations within each village, minus the signs that have already been replaced in Maryvale.  This will amount to a total of up to $154,000.

·                    Keep the Points of Pride sign process status quo, with Budget Signs continuing to provide this service, each facility covering the cost, and PIO monitoring the process.  Continue to provide a new sign for each new site (approximately three signs every four years) at a cost of $300 per year.  

 

If no funding source is available:

 

·                    Remove all 55 original village signs that are classified as in “poor” condition.  The Street Transportation Department has indicated that they can gradually remove the signs over a minimum period of one year.

·                    Continue the Points of Pride sign program as it presently exists, except discontinue the provision of first signs for new sites.

 

RECOMMENDATION

 

This report is for information only.

 Transportation and Infrastructure Subcommittee, November 9, 2009 Item 9

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
FROM:	Cynthia Seelhammer, Interim Water Services Director Charles Thompson, Chief Information Officer Cathleen Gleason, Budget & Research Director Neil Mann, Public Works Director Jeff Dewitt, Acting Finance Director
SUBJECT:	water customer  INFORMATION SYSTEM project UPDATE

 

This report updates the Transportation, Infrastructure and Sustainability Subcommittee on the status of the Customer Information System (CIS) Implementation Project.  The CIS Project replaces the Water Customer Information System (WCIS) that is used to manage customer accounts and produce bills for water, wastewater and solid waste services.  The new system will provide an improved billing format, more flexible billing options, and increased efficiency.  A cut over dress rehearsal will be completed in early November.  On November 12, staff will determine if the system is ready to go-live over the Thanksgiving holiday.

 

THE ISSUE

 

The CIS implementation replaces a 29-year-old mainframe billing system that is becoming difficult to maintain and limits the ability to offer more convenient billing options to the city’s customers.  The project began in January 2007 with the selection of the Oracle Customer Care and Billing (CC&B) software product to replace WCIS.  The project will reach a major milestone in early November as we do a full dress rehearsal of the cut over plans is conducted.  After staff analyzes the results of the dress rehearsal as well as other readiness criteria, it will be determined if the system is ready to go live.

 

OTHER INFORMATION

 

Since the last update in March, significant progress has been made to insure a smooth and successful transition to the new system.  To date, staff has converted information from WCIS to CIS and completely reconciled the financial data to $0.00 variance.  Other important project milestones that have been completed or are underway include the following:

 

·        Completed New Bill Format.  The new bill format is easier to read, shows the payment received, and has a water usage history graph that allows customers to track consumption at a glance.  It allows any amount to be donated to Project Water Assist and since the bill format is on standard-sized paper, it costs less to produce.

 

·        Developed Customer Communication Plan.  The following actions will be taken to explain changes on the bill:

 

-          The new bill format will be announced and explained in the December NOTES. 

-          The phoenix.gov web site will also provide information about the new bill format and poster sized signage will be placed in the water customer pay stations.

-          Letters will be sent to customers who use the automatic payment option advising them to provide their bank with their new account number.

-          Letters will be sent to large volume customers who have compound meters explaining the additional meter read information, which will be provided on the new bill.

-           Additional, temporary Call Center staff will be added during the first month after cutover to answer any questions about the new bill.  The changes will also be reviewed with Council Office staff so they can also respond to constituent calls.

 

·      Designed and applied quality controls.  To insure the data transferred from WCIS to CIS is complete and accurate, staff conducted hundreds of tests to verify the new system and interfaces function properly.  Other quality controls include 60 days of parallel billing which has been underway since September.  Reports comparing 54 other data fields are also being reconciled.  Finally, as an additional accuracy safeguard, a large sample of bills will be reviewed before they are mailed during the 90 day post-go live period.

 

·      Conducted practice or mock cutover tasks.  The project has conducted four practice cutovers to determine the time required and to practice the hundreds of individual tasks needed for a smooth conversion.  The full “dress rehearsal” is scheduled in early November.

 

·      Initiated employee training.  Between September 14 and mid-November, 380 employees will be trained on the new system between September 14^th and mid-November.  Customer Services telephone representatives have been testing the new system by role playing customer calls.

 

Staff estimates converting the WCIS data to the new system will require about 60 hours. To insure no service disruptions or customer service issues occur during the cutover week, staff will take all service requests manually and will have “read only” access to the WCIS information.  The manual requests will then be entered into the new system to assure the new system has up-to-date information on the first business day after cutover.  Oracle project staff will also be onsite for 120 days after the cutover to resolve any unanticipated issues.

 

NEXT STEPS

 

System testing will continue through mid-November.  After the dress rehearsal, staff will determine if the system and employees are ready for a successful implementation.  If additional time is needed, staff will provide an update to the Subcommittee members. 

 

RECOMMENDATION

 

This report is for information purposes only.

 Transportation and Infrastructure Subcommittee, November 9, 2009 Item 10

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
FROM:	Mark E. Leonard, Director Development Services Department
SUBJECT:	DEVELOPMENT SERVICES AD HOC TASK FORCE REPORT

 

The purpose of this report is to transmit the recommendations of the Development Services Ad Hoc Task Force (Task Force) to the Mayor and City Council for consideration.  The Task Force proposes a series of actions that will provide alternative plan review options, expand the Adaptive Reuse Program, improve inspections consistency, improve communication between development-related departments, and provide permit extension and reinstatement relief during these difficult economic times. All of these actions represent continuous improvement in DSD to make development processes in Phoenix among the best in the United States.

 

BACKGROUND

 

The Task Force was formed by the Mayor and City Council on April 15, 2009 with the following charge: work with City staff to review the efforts undertaken by the Development Services Department (DSD) to improve processes and services to customers and identify areas for continuous improvement including, but not limited to, turnaround times, predictability of plan reviews, and consistency of inspections.  A review of the size and scope of projects included within the City’s Adaptive Reuse program was also included.  The Task Force was co-chaired by Vice-Mayor Tom Simplot and Councilman Sal DiCiccio and included key representatives of the development community.  (Attachment A provides a roster of the Task Force members.)

 

The Task Force held monthly meetings between June and October to complete its charge.  During the first meeting, members agreed to concentrate on improving turnaround times, explore self-certification programs, expand the existing adaptive reuse program, and improve inspection consistency.  In addition to the monthly Task Force meetings, working groups concentrating on each of these areas were developed and met periodically to gather information and develop ideas and alternatives which were later shared with the entire DSD Ad Hoc Task Force.  Below is a summary of the major issues addressed by the Task Force.

 

ACCOMPLISHMENTS

 

Building Plan Self-Certification Program

DSD experienced an increase in plan review turnaround times when construction activity reached its highest levels.  To provide customers with an opportunity to expedite the plan review process, DSD has since implemented a Priority Expedited Plan Review and Third Party Plan Review Program.  To help maintain target turnaround times and provide customers with an additional plan review option, the Task Force directed staff to explore the feasibility of implementing a building plan self-certification program in Phoenix.  Staff conducted research on self-certification programs in the top ten largest cities in the United States and twelve local municipalities in the state of Arizona.  Results of this research were shared with Task Force members at the July 28 meeting.  Only three of the top ten cities, Chicago, New York, San Diego, and Pima County, were found to be operating self-certification programs.  (Attachment B provides information on the programs of the four organizations.) 

 

Self-Certification of building plans simplifies the building permit review process for eligible projects where the licensed architect or structural engineer of record takes full responsibility for code compliance.  Plan reviews are eliminated by allowing the Professional of Record to certify the project complies with the Building code.  Random audits are generally conducted by city staff to monitor the performance of the design professionals and to ensure safety.

 

The City of Chicago program appears to be the most feasible for implementation in Phoenix.  In existence for ten years, the Chicago program includes single-family and multi-family residential, mercantile, and business occupancies.  There is size limitations placed within each category and prototype plans are generally required.  Both of these actions are included to reduce risk to the city.  Task Force and staff conducted a conference call with Chicago officials on September 2^nd to further discuss their self-certification program philosophy and experience. 

 

Members of the Task Force recommended DSD develop a self-certification program based on the City of Chicago’s model.  The Task Force unanimously approved the proposed self-certification program and asked that it be evaluated in one year.  (Attachments C and D provide details of the proposed City of Phoenix program and evaluation measures.)

 

Adaptive Reuse Program Expansion

In October 2008 the City Council adopted an Adaptive Reuse Program developed by the city’s Adaptive Reuse Task Force.  The existing program is limited to buildings that are 5,000 square feet or less and are twenty five years or older.  At the direction of the Task Force, staff drafted a proposal to expand the scope of the existing program to allow a greater number of projects the opportunity to participate. 

 

A three-tier approach has been developed which would allow buildings up to 100,000 square feet to participate, and large scale commercial retail (big box) structures above 100,000 square feet on a case-by-case basis.  The initial tier of 5,000 square feet or less would continue to receive the greatest amount of adaptive reuse relief.  However, the larger tiers contain significant relief elements, including the automatic use of the International Existing Building Code.  (Attachment E provides the proposed three-tier expanded program.)

 

Inspections Consistency

Members of the Task Force voiced their concerns regarding two general issues related to inspections consistency.  The first issue involved improving consistency between plan review and inspections.  The goal was to minimize the number of changes made to approved plans by inspection staff in the field.  The second issue involved consistency between field inspectors so that all codes and policies are enforced uniformly throughout the city.  Members of the Task Force and staff from Development Services, with input from Water Services and Street Transportation, worked together to identify new policies and procedures to make improvements in these areas.  (Attachment F provides details of the recommendations developed.)

 

Development Process Coordination and Communication

Lack of communication between development-related city departments was raised as an issue by the Task Force.  To address this concern staff presented a proposal to form a Development Coordination Committee comprised of executive level staff from Development Services, Planning, Fire, Water Services and Street Transportation.  The purpose of the committee would be to provide a mechanism to ensure communication among the five departments and to surface and address process issues.  As part of its charge, the committee will solicit input from the development community through the Development Advisory Board.  (Attachment G provides details of the proposed committee.)

 

Permit Extension / Reinstatement Code Amendments

To assist the development community with the completion of building projects during the current recession, the department developed two amendments to the Administrative Code.  These amendments allow more flexibility and, in some cases, reduced fees in both extending construction permits about to expire and reinstating permits that expired within a year. 

 

The proposed changes for permit extensions allow for multiple extensions, rather than only once as stated in the current code language, and also allow for a reduced fee on projects that need only a few inspections to complete.  In regards to expired permits, the proposed amendment to the code allows the city to reinstate a permit on a project that was permitted under the previous building code and charge a reduced fee for a short duration to complete a project.  (Attachment H provides the specific amendment language.) 

 

RECOMMENDATION

 

The Development Services Ad Hoc Task Force recommends City Council approval of the following set of recommendations:

 

1.      Implement a Building Plan Self-Certification Pilot Program modeled after the City of Chicago program.  Evaluate the pilot program and report back results to the City Council after one year of operation.

 

2.      Expand the Adaptive Reuse Program by creating a three-tier approach, which allows buildings up to 100,000 square feet in size to participate.  Also, large scale commercial retail (big box) structures would be allowed and evaluated on a case-by-case basis.

 

3.      Adopt a twenty four point outline of actions developed to improve inspection consistency.  The actions would address consistency between plan review and inspections, between individual inspectors, between plans and construction, and efficiency of inspections.

 

4.      Approve the creation of a Staff Development Coordination Committee comprised of executive representatives from Development Services, Planning, Fire, Water Services, and Street Transportation.  This committee would provide a mechanism to improve communication and development coordination between DSD, Planning, Fire, Street Transportation, and Water Services. 

 

5.      Endorse the Permit Extension / Reinstatement code changes that would help complete building projects during the down economy.  Staff will bring forward those items to the City Council for formal adoption at a later date.

 

 

ATTACHMENTS:

A - Task Force Roster

B - Self-Certification Research

C - Proposed Self-Certification Program

D - Self-Certification Evaluation Criteria

E - Proposed Expanded Adaptive Reuse Program

F - Recommendations to improve Inspections Consistency

G - Development Coordination Committee

H - Permit Extension / Reinstatement Policies

Attachment C

PROPOSED CITY OF PHOENIX

SELF-CERTIFICATION PILOT PROGRAM OVERVIEW

 

The Self-Certification Pilot Program simplifies the building permit review process for eligible projects where the licensed architect or engineer of record takes full responsibility for code compliance. Plan reviews are eliminated by allowing the Professional of Record to certify that the project complies with the Building code. 

 

Eligibility: The Self-Certification Pilot program requires the Professional of Record (an architect or engineer) to be licensed in Arizona and the scope of work to comply with the Self-Certification Program Eligibility Chart. Additionally, the Professional of Record must have successfully completed a DSD Self-Certification Training Class, must currently be identified on the approved list of Self Certification professionals, and must have prepared and sealed the project drawings. 

 

Self-Certification projects must obtain all planning and zoning approvals (including satisfaction of all stipulations), and obtain all building code modifications as necessary prior to DSD’s Intake Appointment.  

 

If the project meets the eligibility criteria of the program, and the plans and documentation are complete, the building permit can typically be issued within a few days of the project plan submittal. 

 

Additional program requirements include: a hold-harmless letter signed by all registrants, a building owner/tenant indemnification letter, and a copy of the Professional of Record’s Certification of Insurance. 

 

Highlights of the Self-Certification Pilot Program:  

·         The Professionals of Record must personally attend DSD’s Intake Appointment. 

·         No technical reviews are performed by DSD plan examiners. 

·         Acceptable submissions are approved for permit subject to audit and field inspection. 

·         Allows interior alterations and first time tenant commercial build-outs. Includes build-out work such as real estate, medical, dental and law offices, retail stores and markets. 

·         Allows interior alterations and first time build-outs of restaurants with not more than 50 persons. 

·         Allows new construction of residential buildings up to 6 units, four stories & first floor business or mercantile use, with approved Prototype Plans. 

·         Allows new construction of single story buildings with mercantile, non-hazardous storage, or business occupancy up to 25,000 sq. ft. with approved Prototype Plans.  Exceptions can be approved by DSD Director.

·         Projects with occupancy, fire separation or exiting changes are not eligible unless changing from business to mercantile, mercantile to business, or to storage.

·         Structural Peer Review Report by a DSD-approved Structural Peer Reviewer is required for projects with structural scope of work. 

·         Projects requiring a Storm Water Management review are not eligible for Self-Certification unless Storm Water Management approval is obtained separately prior to the Intake Appointment.

·         No projects in Historic Preservation areas without prior State and City Historic Preservation approval.

·         Hillside projects are not eligible for Self-Certification.

·         Fire flow test and site access must be approved by the Fire Department prior to submittal.

·         Hazardous Occupancies are not eligible for Self-Certification.

·         Auditing system to be developed and implemented.

 

* Prototype plans approved under current code are required for projects with more than six (6) buildings.

** Non-Hazardous Storage

                                                                                                                                     

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 11

CITY COUNCIL REPORT
TO:	Ruth Osuna Deputy City Manager   Rick Naimark Deputy City Manager
FROM:	Neil Mann Public Works Director   Tammy J. Perkins Executive Assistant to the City Manager
SUBJECT:	GREEN RAIL CORRIDOR DEMONSTRATION PROJECT - RECOMMENDED CHANGE IN PROJECT SCOPE

 

This report requests the Transportation, Infrastructure and Sustainability Subcommittee recommend to the full City Council approval of the following changes in the Green Rail Corridor Demonstration Project scope of work:

 

·                    Shift the focus of the project from solar power development to implementation of a comprehensive and sustainable energy efficiency program.

 

·                    Expand the project boundaries to include the Booker T. Washington, Downtown, Eastlake Park, Garfield and Special Redevelopment Areas as well as the area bounded by 16^th Street to the I-10 and the Washington/Jefferson Street pair to the I-10.

 

·                    Increase the maximum grant application amount from the previously City Council adopted $53 million to an amount not to exceed $75 million.

 

THE ISSUE

 

On October 12, 2009, the United States Department of Energy (DOE) issued a Funding Opportunity Announcement for the competitive Energy Efficiency Conservation Block Grant (EECBG), the Retrofit Ramp-Up Program.  The Program provides up to $390 million for programs of $5 to $75 million for eight to 20 awards nationally.

 

The DOE is seeking investments that can fundamentally transform energy markets to make energy efficiency the option of first choice and sustain efforts beyond the grant monies and grant period by including program sustainability into the program design.  The DOE is seeking grant applications that leverage a broad spectrum of participation, prioritize energy efficiency, are ready for implementation and maximize the creation and/or retention of U.S. jobs.

 

OTHER INFORMATION

 

As the funding opportunity is energy efficiency based, it is important to refine the Phoenix scope of work to best meet the specific program criteria of the grant.  City staff has met with our partners from the ASU Global Institute of Sustainability and Arizona Public Service (APS) and believe a sharpened focus on energy efficiency efforts in the corridor and expansion of the corridor to include more residential buildings will maximize the competitiveness of the City’s application.  The group also believes that the City application should be for up to $75 million, the maximum award amount.

 

RECOMMENDATION

 

Staff requests the Transportation, Infrastructure and Sustainability Subcommittee recommend to the full City Council approval to make the following changes to the Green Rail Corridor Demonstration Project’s scope of work:

 

·                    Shift the focus of the project from solar power development to implementation of a comprehensive and sustainable energy efficient program.

 

·                    Expand the project boundaries to include the Booker T. Washington, Downtown, Eastlake Park, Garfield and Special Redevelopment Areas as well as the area bounded by 16^th Street to the I-10 and the Washington/Jefferson Street pair to the I-10.

 

·                    Increase the maximum grant application amount from the previously City Council adopted $53 million to an amount not to exceed $75 million.

 

 

 

:

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 12

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	TRANSIT FURNITURE ADVERTISING - INTERIM AGREEMENT

 

This report requests approval of an interim agreement for transit furniture vehicle advertising for the period of January 1, 2010 to December 31, 2010.

 

THE ISSUE

 

On October 8, 2009, the Transportation, Infrastructure, and Sustainability Subcommittee directed staff to research extending the interim agreement between the City and CBS Outdoor until December 31, 2010 and, concurrently, release a Request for Proposal (RFP) for a new transit furniture advertising contract.

 

OTHER INFORMATION

 

On November 19, 2008, the Mayor and City Council approved the Bus Shelter and Transit Furniture Advertising Program contract with CBS Outdoor.  On November 20, 2008, CBS Outdoor requested in writing that the agreement be restructured on J.  Staff worked with CBS Outdoor to resolve any issues and concerns; however, on January 5, 2009, CBS Outdoor informed the City the contract would not be signed.

 

On April 1, 2009, the Mayor and City Council approved to rescind the contract for Bus Shelter and Transit Furniture Advertising and to extend the existing interim agreement until a permanent contract was authorized and approved.  The current extension on the interim agreement is in effect until December 31, 2009 and allows for a revenue split of 60/40, in favor of CBS Outdoor, to address the continuing national economic downturn which has severely impacted advertising revenues.

 

This chart illustrates the monthly revenue received from bus shelter and transit furniture advertising since June 2008:

 

 

RENTAL MONTH	REVENUE
June 2008	$107,229.50
July 2008	$116,156.34
August 2008	$158,876.79
September 2008	$121,624.86
October 2008	$121,624.86
November 2008	$107,101.58
December 2008	$120,559.13
January 2009	$88,714.63
RENTAL MONTH	REVENUE
February 2009	$107,679.91
March 2009	$102,441.75
April 2009	$96,637.53
May 2009	$98,531.93
June 2009	$97,613.55
July 2009	$75,210.40
August 2009	$93,658.74
September 2009	$63,519.09

 

The revenue provided to the City continues to decline and staff has researched options to generate more revenue in this area.  Staff has worked with the contractor, CBS Outdoor, to create a plan that will yield the most revenue to the City during these difficult economic times while ensuring a fair return to the contractor.

 

Staff is proposing the following for the interim agreement for the bus shelter and transit furniture advertising program:

 

·        The interim agreement will be extended until December 31, 2010.

·        CBS Outdoor will continue to maintain all transit advertising furniture during the extension with a revenue split of 60/40, in favor of the City, after all maintenance expenses.

·        The Public Transit Department will release a new RFP no later than March 31, 2010, with the new vendor to assume the contract January 1, 2011.

 

Based on staff’s analysis and current market conditions, this proposal will generate the most revenue possible under an interim agreement.

 

RECOMMENDATION

 

Staff requests Subcommittee approval to extend the interim agreement with CBS Outdoor until December 31, 2010 with a revenue split of 60/40, in favor of the City, after all maintenance expenses.

 

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 13

CITY COUNCIL REPORT
TO:	Ruth Osuna Deputy City Manager
FROM:	Tammy J. Perkins Executive Assistant To The City Manager
SUBJECT:	GREENBUILD 2009 PARTNERSHIP

 

This report updates the Transportation, Infrastructure and Sustainability Subcommittee on the partnership with the local host committee of Greenbuild 2009.

 

THE ISSUE

 

The Phoenix Convention Center will be the host of the Greenbuild 2009 conference from November 11-13, 2009.  Expecting over 25,000 attendees from across the globe, Greenbuild 2009 is the annual conference of the United States Green Building Council (USGBC).  Staff is working to create opportunities for Phoenix residents to take advantage of the benefits of Greenbuild 2009, and to alert conference attendees to the City’s sustainability programs and services.

 

OTHER INFORMATION

 

On July 1, 2009, the City Council authorized staff to work with the local Greenbuild 2009 host committee to explore opportunities for Phoenix residents to take advantage of Greenbuild 2009.  Highlights include:

 

·                    Gateway to Green Phoenix – Hosted by Parks & Recreation, this community fair will feature displays by city departments describing sustainable programs and services available to Phoenix residents.  November 13, 4:00 p.m. to 6:00 p.m., Civic Space Park’s historic A.E. England Building, 424 North Central.

 

·                    Phoenix Green Streets Festival –  Presented by Roosevelt Row in partnership with the City, the Arizona Chapter of the USGBC, ASU Downtown, Downtown Phoenix Partnership, HandsOn Greater Phoenix, Local Arizona First, Phoenix Community Alliance and Valley Forward, this event features local vendors showcasing eco-friendly products & services, arts & crafts, and a beer garden.  November 13, 6:00 p.m. to 10:00 p.m., Roosevelt Row.

 

·                    Phoenix Green Week Event Calendar – Working with Phoenix Green Streets Festival partners, Public Information staff produced a Phoenix Green Week calendar designed to provide Phoenix residents and Greenbuild attendees with a menu of green entertainment options during Greenbuild 2009 week.

 

·                    Phoenix City Hall 11^th Floor Balcony Green Roof Demonstration Project – A model of the demonstration project will be on display at the Phoenix Convention Center during Greenbuild 2009; the model will be displayed at Phoenix City Hall later in November.

 

·                    Green Art Exhibit – Organized by Public Works staff, art from recycled materials will be on display during Greenbuild 2009 at Phoenix City Hall to mark the 20^th anniversary of “Phoenix Recycles, America Recycles Day.”

 

·                    Green Job Fair – Working with Greenbuild 2009 organizers, Community & Economic Development staff organized this event which includes several workshops for 1,000 first come, first serve job seekers.  November 10, 1:00 p.m. to 5:00 p.m., Phoenix Convention Center.

 

·                    Phoenix Green Facilities Featured on Tours – City-owned facilities to be featured in a variety of Greenbuild 2009 field tours include:  ASU College of Nursing and Health Innovation, ASU Walter Cronkite College of Journalism & Mass Communications, Downtown Phoenix Solar Civic Space and Public Art Installation by Janet Echelman, Palo Verde Library, Maryvale Community Center, Phoenix Convention Center West Building, Pueblo Grande Museum and Archaeological Park, and the Rio Salado Audubon Center.

 

·                    Communications Plan – Staff from Public Information and PHX11 worked with representatives from the local host committee to leverage Green Phoenix and Greenbuild publicity opportunities.  Outcomes include three press releases, a press packet for Greenbuild 2009, a Beth and Bill interview on radio station 99.9 KEZ, City and State Greenbuild proclamations, an On the Issues segment, a show featuring Rick Fengrezzi, President of the USGBC, a show tracking the Habitat for Humanity project, and future PHX11 shows featuring Greenbuild 2009 content.

 

·                    International Visitor Reception – The Mayor’s Office, Community & Economic Development and the Greater Phoenix Economic Council will present a reception for international visitors.  November 10, 5:00 p.m. to 6:30 p.m., Phoenix Convention Center.

 

·                    Green Arizona Directory & 500 Mile Pavilion Booth – Working together, Public Works and Water Services sponsored a City of Phoenix ad in the Green Arizona Directory and a Greenbuild 2009 booth at the Phoenix Convention Center.

 

·                    Legacy Projects – City staff are working with USGBC representatives on two projects.  Habitat for Humanity volunteers will build a “net zero” energy affordable home during Greenbuild 2009 week.  Solar Commons volunteers will create a prototype solar installation designed to provide support to the non-profit community.

 

RECOMMENDATION

 

This report is for information only.

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 14

CITY COUNCIL REPORT
TO:	Ed Zuercher Deputy City Manager
FROM:	Debbie Cotton Public Transit Director
SUBJECT:	BUS SHELTER AND VEHICLE ADVERTISING RESTRICTIONS UPDATE

 

This report updates the Transportation, Infrastructure and Sustainability Subcommittee on bus shelter and vehicle advertising restrictions as requested at the October 8, 2009 Subcommittee meeting.  In addition, this report requests approval to change the current agreements that restrict advertising in certain zoned areas.  These changes would permit advertising on arterial streets where bus service is provided.  Staff also seeks guidance on a modification to the transit advertising guidelines in reference to liquor.

 

THE ISSUE

 

On October 8, 2009, staff requested guidance from the Transportation, Infrastructure and Sustainability Subcommittee on potentially modifying transit advertising guidelines for Phoenix transit furniture.  The Subcommittee diverted staff to return with additional information and options for the Phoenix transit vehicles and furniture advertising program.

 

OTHER INFORMATION

 

Currently, there are restrictions on the locations at which the City will allow transit shelter advertising.  The amount of estimated annual revenue that could be regained if restrictions and/or requirements are modified is estimated as follows:

 

Removal of Requirement/Restriction	Advertising Source	Estimated Annual Revenue
Beer & Wine	Transit vehicles – Clear Channel	$55,000
Alcohol	Transit vehicles – Clear Channel	$111,000
Beer & Wine	Transit furniture – CBS Outdoor	$50,000
Alcohol	Transit furniture – CBS Outdoor	$100,000
Resort District (RH) – examples:  City North, Desert Ridge	Transit furniture – CBS Outdoor	$40,000
Arterial Streets (RO, CO, GO, P-1) – example:  Central Avenue	Transit furniture – CBS Outdoor	$20,000

 

Modifications to include advertising on arterial streets would create advertising opportunities in all areas correlating to a bus route.  Traffic volume is greater on arterial streets, which would allow an advertiser to reach a greater commuting audience on the sidewalks, buses and cars.  These heavily traveled arterial streets could also include areas zoned as residential office, commercial and residential districts.

 

Advertising – Alcohol, Beer and Wine

 

Staff would adhere to the rules and regulations as set forth by the Arizona Department of Liquor Licenses and Controls guidelines.  Further, the separation requirement may be increased in instances where transit furniture is located near schools or churches.   Staff would evaluate neighborhoods on a case by case basis to determine if advertising is compatible and consistent with the area, and ensure placement of advertising would not be visible to adjacent residential property.  Staff also recommends no interior vehicle advertising of alcohol, beer, or wine.

 

RECOMMENDATION

 

1.      Staff requests approval to change the current advertising agreements that restrict advertising in certain zoned areas to permit advertising on arterial streets where bus service is provided.

2.      Staff seeks guidance on consideration of a modification to the transit advertising guidelines in reference to alcohol, beer, and wine.

 

The City’s advertising contractors have stated that such changes to existing guidelines have the potential to increase city transit advertising revenues. 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 15

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
	Ed Zuercher Deputy City Manager
FROM:	Cathleen Gleason Budget & Research Director
	Wylie Bearup Street Transportation Director
	Cynthia Seelhammer Acting Water Services Director
	Tauny Woo Acting City Engineer
SUBJECT:	STORM WATER MANAGEMENT PROGRAM STUDY

 

This report presents information and recommendations regarding the Storm Water Management Program.  It includes a review of the mandates from the new Arizona Pollutant Discharge Elimination System (AZPDES) permit, resource requirements to meet new permit terms, program organizational structure, and the storm water fee.

 

THE ISSUE

 

On February 3, 2009, the City was issued a new AZPDES permit by the Arizona Department of Environmental Quality (ADEQ) that authorizes the discharge of storm water from the storm sewer system to waters of the U.S., such as the Salt River.  The goal of the AZPDES, which is under section 402 of the federal Clean Water Act, is to prevent pollution from entering waters of the U.S. via storm water runoff.

 

As a result of Environmental Protection Agency (EPA) evaluations of the Storm Water Management Program in 2001 and 2008, new requirements were added to the permit in response to identified program deficiencies.  In addition, existing requirements were increased and specific service level targets were established.  The new permit requirements impact all required program areas: storm water monitoring; illicit discharge detection and elimination; industrial, commercial, and municipal facility inspections; new construction inspections; maintenance of storm water infrastructure; mapping of infrastructure; employee training; and public education and outreach. 

 

OTHER INFORMATION

 

The EPA issued the City’s original permit in 1997.  In 2008, the EPA conducted a limited program evaluation as a follow-up to a 2001 audit and concluded the City needed to improve its program to control pollutants from industrial and commercial facilities.  Specifically, the EPA wrote that the following areas need to improve: number of facility inspections; interdepartmental coordination; and measurable goals to track progress.

The City’s original permit expired in February 2002 and was administratively continued until February 3, 2009 when the City’s second AZDPES permit was issued.  Examples of the new or increased requirements include:

 

·        Inspect a minimum of 340 industrial facilities per year (more than double the current amount completed).

·        Investigate 80 percent of potential illicit discharges within 15 days of detection/report and initiate corrective action within 60 days of identification of source (new requirement).

·        Specific mapping requirements that must be incorporated by the fourth year annual report, due September 2012 (new requirement).

·        The City shall not discontinue or decrease an existing practice or control without an approved modification of the permit (new requirement).

 

Non-compliance with storm water permits can be costly and onerous for a municipality.  In 2005, the EPA fined the city of Dallas $800,000 and found them to be not actively enforcing the Clean Water Act and the conditions of their permit.  Dallas is currently operating its program under a consent decree requiring specific activities, staffing levels, and environmental projects such as the construction of two wetlands.

 

Organizational Placement

The Storm Water Management Program components most affected by the new permit are currently distributed among several departments.  Engineering and Architectural Services (EAS) is responsible for overall administration of the permit and GIS mapping of storm water infrastructure.  The Street Transportation Department (Streets) is responsible for the inspection and maintenance of the storm water drainage system.  Effective July 1, 2009, staff responsible for industrial facility inspection and illicit discharge detection and elimination (IDDE) were moved from Streets to the Water Services Department’s (WSD) Pollution Control Division.  As part of their pretreatment program, the Pollution Control Division inspects many of the same facilities as required under the new permit.  This move will improve efficiency by having one inspector investigate for both storm water and pretreatment issues in a single visit.

 

While EAS is currently responsible for administration of the permit, they do not manage the majority of staff that carries out the major components of the permit.  Placing permit administration with WSD, in addition to industrial facility inspections and IDDE, would improve overall coordination and accountability.  In addition, the WSD has a long history of successfully complying with federal regulations regarding water quality and is well suited to managing what will likely be an increasingly complex regulatory environment for storm water management.  Continuing to have storm water infrastructure mapping reside in EAS will allow EAS to enter both the landbase/streets layer and storm water GIS data as part of one process.  Both sets of data are contained in the same as-built plans.

 

Resources

In addition to the organizational changes discussed above, additional resources will be necessary to achieve the new and expanded permit requirements.  A total of 14 new positions and restoration of seven wash and drainage maintenance positions, as well as equipment and contractual services are needed.  The annual cost for these new resources would be $3.3 million.

 

Additionally, dedicated funding for infrastructure improvements is needed as local flooding may result in pollutants being washed into the storm water system and entering the waters of the U.S.  These improvements include local drainage and storm sewer projects.  Demonstrating maintenance of effort in correcting flooding problems will place the City in the best possible position to be in compliance with the permit.  Dedicated capital funding for local flooding infrastructure projects will also ensure that the City can compete for a share of the capital funding available through the Maricopa County Flood Control District.  Over the last five years, the Streets Department has received County matching funds totaling $22.4 million.

 

Storm Water Fee

The city of Phoenix initiated a storm water fee in 1993 at a rate of $0.15 per month for single-family residential water service accounts, with proportionally higher rates for larger water users.  The fee was implemented to defray the costs of operating the Storm Water Management Program.  The fee was last increased in 1997 by $0.05 to $0.20 per month.  A survey of comparable cities found the city of Dallas had the lowest monthly fee of $2.50.

 

Currently, the City collects $1.3 million in storm water revenues annually, and the revenues are considered part of the General Fund.  This amount is adequate to fund current permit compliance activities in EAS and the WSD.  It does not cover the current costs for maintenance of the drainage system or infrastructure improvements.

 

In order to avoid negatively impacting the General Fund, a funding source needs to be identified to provide the necessary additional resources to ensure the City stays in compliance with federal regulations.  The existing storm water fee is the most logical source.  The table below presents several fee increase options:

 

Option	Current Fee	Fee Increase*	Description	Revised Fee
A	$0.20	$0.55	New operating costs, including 21 positions	$0.75
B	$0.20	$0.65	New operating costs and $1 million in infrastructure improvements.	$0.85
C	$0.20	$1.30	New operating costs and $6 million in infrastructure improvements.	$1.50
D	$0.20	$1.85	New operating costs and $10 million in infrastructure improvements.	$2.05

*Funding for infrastructure improvements would begin in fiscal year 2010-11.

 

RECOMMENDATIONS

 

Staff recommends the following:

• Transfer storm water program management from EAS to Water Services.
• Adopt option C: add $3.3 million in operational resources, including 21 positions; add $6 million in annual storm water infrastructure costs beginning in FY 2010-11; resulting in an increase in monthly storm water management fee from $0.20 to $1.50 on single-family residential water service accounts (other water meter sizes will be assessed a graduated amount) and convert to a special revenue fund.
• Establish documented business practices for interdepartmental coordination and hold regular storm water team meetings to report on permit compliance progress.

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 16

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
FROM:	Cynthia Seelhammer Interim Water Services Director
SUBJECT:	PROPOSED 2010-2011 through 2014-2015 WATER CAPITAL IMPROVEMENT PROGRAM

 

This report provides a summary of the Five-Year Water Capital Improvement Program (CIP) needed to support existing and future populations, maintain regulatory compliance, and provide for the rehabilitation and integrity of the water system.  Staff requests conceptual approval from the Transportation, Infrastructure and Sustainability Subcommittee of the Water Services Department’s proposed Fiscal Years 2010-2011 through 2014-2015 Five-Year Water CIP.

 

THE ISSUE

 

The Water Services Department is continuing to experience increased challenges in balancing the need for water capital projects with limited water revenue projection.  Recent financial conditions have resulted in reduced projections for water demand over the planning period.  This trend is projected to continue over the first two or three years of the planning period.

 

Given the fiscal constraints, various programmatic changes were necessary, including delaying growth and rehabilitation projects.  If economic trends do not return to historical levels, future revenue increases may need to be higher in order to sustain the integrity of the water infrastructure and ensure regulatory compliance

 

The current projections of water revenues are not sufficient to meet all Water CIP needs.  To address these needs with a Water CIP that can be supported within the current fiscal constraints, the following strategies have been employed:

 

1.                     Funding of localized facilities needed for growth, such as water mains and pump stations, continues to be shifted from rate supported funds to development based funds and developer partnerships.  In this Water CIP, such funds are now minimal, and funds for regional facilities needed to support growth have been reduced.  In the short term, deferral of infrastructure expansions, due to slower growth projections, freezes system capacity at current levels.  In the long term, growth could be limited by either the private sector’s ability to organize private/public financing partnerships or where growth outpaces the City’s ability to expand capacity.

 

2.         Less critical system enhancements and rehabilitation projects are delayed in order to complete essential rehabilitation of treatment facilities and implement Federal/State water quality standards requirements.  As the water system continues to age, replacement and rehabilitation needs will increase requiring additional funding to keep the system from experiencing failures.  These delays may require higher operations and maintenance (O&M) costs in the future and may increase risks of system failures.

 

Given the current fiscal constraints, these various program changes were necessary, however, this approach to balancing revenues with capital needs is not sustainable over the long term and is intended only as a short term strategy to respond to the current financial situation.  Future CIPs will need to include a long term strategy for establishing a CIP which will meet the long term infrastructure needs of the community.

 

OTHER INFORMATION

 

The proposed Five-Year Water CIP has increased to $921.8 million from the CIP provided at this time last year of $836.0 million.  While several growth-related construction and rehabilitation projects have been deferred, consolidation of business systems have been included to provide for long term cost savings in operations and maintenance costs.  Key projects and changes from last year’s Five-Year Water CIP submittal are highlighted below:

 

Water Treatment Plants

A total of $230.0 million has been programmed in the overall category of water treatment plants.  Of this total, $125.3 million is proposed for the implementation of processes to ensure compliance with the Stage II Disinfectants/Disinfection By-Products (DBP) Rule of the Safe Drinking Water Act (SDWA).  Over the last year a detailed study was completed to explore options to increase operational flexibility and decrease the O&M costs of projects needed to comply with the DBP Rule.  This compliance program requires the addition of chlorine dioxide and ferric chloride to all the water treatment plants, conversion of two water treatment plants to Granular Activated Carbon (GAC) filtration at an estimated cost of $92.3 million, and the need to construct a carbon regeneration facility in the future, at an estimated cost of $33.0 million. 

 

Funds totaling $97.6 million are proposed for rehabilitation, equipment replacement, and operational improvements at the City’s water treatment plants.  Of this amount, $29.9 million are programmed for rehabilitation projects at the various facilities over the five year period; $29.0 million for a new sludge dewatering facility at the Union Hills WTP; $10.7 million for process control and automation improvements; and $4.0 million to optimize the treatment processes at the 24th Street WTP.  Additional funding will be required to implement the remaining recommendations of recent studies to optimize treatment processes at the WTPs.

 

Reclamation Facilities

The Cave Creek Water Reclamation Plant is programmed to include automation improvements of $1.8 million and a new dechlorination facility estimated at $0.5 million to meet regulatory requirements.  Future funding of $1.0 million is proposed for expansion of the North Gateway Pump Station to address growth in the northwest area of the City.

 

Remote Facilities – Wells, Reservoirs and Pump Stations

Funding to increase groundwater well production is maintained in the Five-Year Water CIP ($20.0 million).  Funding for the drilling of additional wells will be needed in future years to implement the remaining recommendations of the Phoenix Water Resources and Groundwater Management Plans.

 

Funding for design and construction of three storage reservoirs ($16.9 million) is slightly increased from last year’s levels.  Additional funding will be needed in the future to implement the remaining recommendations of the Water System Master Plan.

 

Increased funding ($83.2 million) is proposed for the rehabilitation of reservoirs ($44.6 million) and for rehabilitation of wells and booster pump stations ($38.6 million).  Additional funding of $4.3 million is planned for reservoir system optimizations.  These projects are necessary to maintain proper water quality, regulatory compliance and system integrity.

 

Water Mains

A total of $399.8 million has been programmed in the general category of water mains.  Of this total, $167.0 million is proposed to replace substandard water distribution mains and improve fire protection capacity; $50.9 million for water service replacement, utility relocations, emergency repair contracts, and relocation of water mains and services ahead of street improvements; 33.0 million for new service connections; and $59.4 million to begin assessing and rehabilitating the system’s large transmission mains.  It is probable that findings from the condition assessments may require additional funding in the future or reallocation to earlier years.

 

Also included in this general category of funding is $38.8 million to complete the residential component of the infrastructure needed to improve water pressure in the Lower Camelback East Village; $18.6 million for relocation of water mains in conjunction with the City’s Light Rail Northwest Extension Project; $9.8 million for optimization of the distribution system to ensure compliance with the DBP  Rule; and $16.7 million for the rehabilitation of the most critical portions of the largest transmission main in the water system.  This 15-mile pipeline carries water from the Val Vista WTP, serving a large portion of the City of Phoenix and the City of Mesa.  Additional funding will be required in future years to accelerate the replacement of substandard water distribution mains.

 

Security Improvements

The security program will continue to target the most critical sites and incorporate security measures, such as enhanced perimeter fencing, electronic security monitoring and controlled entry systems ($7.7million).  Funding for these improvements has been reduced from last year’s levels.

 

New Water Resources

Funding in the amount of $16.2 million is programmed for the acquisition of new water resources.  Elements of the Water Resources Acquisition Fee funding program include the remaining capital charges associated with 8,206 acre-feet of reallocated Central Arizona Project (CAP) water made possible through the passage of the Arizona Water Settlements Act, the expected transfer of 12,000 acre-feet of CAP water from the Arizona State Land Department to the City of Phoenix, and an anticipated lease of 3,505 acre-feet of CAP from the White Mountain Apache Tribe.  These water resources reflect Phoenix’s needs under normal conditions.  As drought conditions develop further, the need for additional water resources to offset anticipated shortfalls in surface water supplies will be considered in establishing future funding allocations.

 

Buildings

A total of $8.1 million has been programmed for construction of the new Corona Yard ($5.1 million) and upgrade to the Department’ compliance laboratory ($3.0 million)

 

Business Automation Projects

A total of $25.8 million has been programmed for business automation projects.  Of this amount, $20.0 million is planned for the installation of automatic meter reading devices.  The remaining funds of $5.8 million are programmed for consolidation of labor management, customer information billing and operating maintenance systems. 

 

A number of projects remain unfunded or partially unfunded, including a future expansion of the Cave Creek WRP, future water treatment plant expansions, projects to assess and rehabilitate large water transmission mains, and new infrastructure to support growing areas.  Staff will continue to monitor the water system needs and, if necessary, will recommend the acceleration of funding for specific projects.

 

Attachment 1 lists the proposed 2010-2011 through 2014-2015 Water CIP by fiscal year.  It totals $921.8. million.  Attachment 2 categorizes the necessity of projects as Rehabilitation/Replacement, Reliability/Growth and Environmental/Health.

 

RECOMMENDATION

 

Staff recommends conceptual approval of the Water Services Department’s proposed Fiscal Years 2010-2011 through 2014-2015 Five-Year Water CIP.

 

 

Attachments (2)

 

 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 17

CITY COUNCIL REPORT
TO:	David Cavazos Deputy City Manager
FROM:	Cynthia Seelhammer Interim Water Services Director
SUBJECT:	PROPOSED 2010-2011 THROUGH 2014-2015 WASTEWATER CAPITAL IMPROVEMENT PROGRAM

 

This report provides a summary of the proposed Five-Year Wastewater Capital Improvement Program (CIP) needed to support existing and future populations, maintain regulatory compliance, and provide for the rehabilitation and integrity of the wastewater system.  Staff requests conceptual approval from the Transportation, Infrastructure and Sustainability of the Water Services Department’s proposed Fiscal Years 2010-2011 through 2014-2015 Five-Year Wastewater CIP.

 

THE ISSUE

 

The Water Services Department is continuing to experience challenges in balancing the need for wastewater capital projects with limited wastewater revenue projections. Recent financial conditions have resulted in reduced projections for wastewater generation over the planning period.

 

Given the fiscal constraints, various programmatic changes were necessary, including delaying growth and rehabilitation projects.  If economic trends do not return to historical levels, future revenue increases may need to be higher in order to sustain the integrity of the wastewater infrastructure and ensure regulatory compliance.

 

The current projections of wastewater revenues are not sufficient to meet all these needs.  To address these needs with a Wastewater CIP that can be supported within the current fiscal constraints, the following strategies have been employed:

 

1.         Funding of localized facilities, such as sewer mains and lift stations, continues to be shifted from rate supported funds to development based funds and developer partnerships.  In this Wastewater CIP, such funds are now minimal, and funds for regional facilities needed to support growth have been reduced.  In the short term, deferral of infrastructure expansions, due to slower growth projections, and freezes system capacity at current levels.  In the long term, growth could be limited by either the private sector’s ability to organize private/public financing partnerships or where growth outpaces the City’s ability to expand capacity.

 

2.                  Less critical system rehabilitation and preventive maintenance projects are delayed in order to address critical rehabilitation needs.  As the wastewater system continues to age, replacement and rehabilitation needs will increase requiring additional funding to keep the system from experiencing failures.  These delays may create higher future maintenance costs, generate increased odor and service complaints, and possible risk of system failures.

 

OTHER INFORMATION

 

The proposed Five-Year Wastewater CIP has increased to $690.7 million from the CIP provided at this time last year of $496.7 million.  While several growth-related construction and rehabilitation projects have been deferred, consolidation of business systems have been included to provide for long term cost savings in operations and maintenance costs.  Key projects and changes from last year’s Five-Year Wastewater CIP submittal are highlighted below:

 

91st Avenue Wastewater Treatment Plant

Design and construction funds ($113.3 million, Phoenix share) for the next expansion of the 91st Avenue WWTP is maintained in the five-year period.  This plant expansion is now anticipated to begin operation in 2018 (three years later than previously anticipated) to meet projected capacity shortfalls for Phoenix and its partner cities, the Sub-Regional Operating Group (SROG).  The timing of the plant expansion may be needed earlier if growth of the area occurs more rapidly than that currently anticipated.

 

A total of $18.5 million is proposed for equipment replacement, rehabilitation, code compliance automation and operational improvements.

 

23rd Avenue Wastewater Treatment Plant

Partial funding ($14.3 million) has been included to begin improvements to the digesters at the plant.  This project will relieve the biological process capacity constraint to maximize the plant’s rated capacity, and produce a more biologically stable biomass for use as a crop fertilizer.  Additional funding will be needed in the future to fully fund the construction of this project.

 

A total of $13.2 million is proposed for equipment replacement, rehabilitation, code compliance, automation and operational improvements.

 

Lift Stations

A total of $31.3 million is included for upgrades and expansions to existing lift stations, including security and automation improvements.  As part of this funding, $8.2 million is maintained for land acquisition and design of a future regional lift station in the Estrella area.  Construction funds will need to be programmed beyond the five-year period. 

 

 

Sewer Projects

A total of $398.8 million (Phoenix share) has been programmed in the general category of sewer mains.  Of this total, $54.4 million is proposed for the replacement and rehabilitation of sewer mains, manhole and metering stations; $5.3 million for relocation of sewers ahead of street improvements, repair and cleaning programs, and emergency repair contracts; and $3.8 million (Phoenix share) for odor control in the SROG interceptor sewers.  This level of funding is necessary to maintain the integrity of the most critical components of the wastewater collection system. 

 

Also included in this general category is, $12.8 million for the relocation of sewers in conjunction with the City’s Light Rail Northwest Extension Project; $70.5 million for construction of parallel sewers to relieve growth capacity constraints in portions of Phoenix’s system, and $ 248.1 million, (Phoenix share) for SROG regional interceptor sewers.  This project was previously deferred and may need to be accelerated in the future to prevent capacity constraints from worsening, potential sewer overflows and regulatory enforcement. 

 

Additional funding will be needed in the future to implement remaining recommendations of the Wastewater System Master Plan.

 

Business Automation Projects

A total of $9.0 million has been programmed for business automation projects.  Of this total, $6.0 million is proposed for the installation of automatic meter reading over the five-year period, in addition to the allocation in the Water CIP.  The remaining funds of $3.0 million are programmed for consolidation of labor management, customer information billing and operating maintenance systems.

 

A number of projects remain unfunded, such as additional small diameter sanitary sewer rehabilitation and lift station improvements.  Staff will continue to monitor the wastewater system needs and, if necessary, will request the acceleration of funding for specific projects.

 

Attachment 1 lists the proposed 2010-2011 through 2014-2015 Wastewater CIP by fiscal year.  It totals $692.5 million.  Attachment 2 categorizes the necessity of projects as Environmental/Health, Reliability/Growth and Rehabilitation/Replacement.

 

RECOMMENDATION

 

Staff recommends conceptual approval of the Water Services Department’s proposed Fiscal Years 2009-2010 through 2013-2014 Five-Year Wastewater CIP.

 

 

Attachments (2)

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 18

CITY COUNCIL REPORT
TO:	Ruth Osuna Deputy City Manager
	David Cavazos Deputy City Manager
FROM:	Jeff DeWitt Interim Finance Director
SUBJECT:	2010 Water and WASTEWATER FINANCIAL PLANS

 

THE ISSUE

 

This report provides information concerning the financial requirements necessary to support the Water Services Department’s operations and Capital Improvement Program (CIP) for 2010-11 through 2014-15 for the Water and Wastewater Systems and recommends the Transportation, Infrastructure and Sustainability Subcommittee conceptually approve the 2010 Water and Wastewater Financial Plans.

 

Consistent with past years, five-year plans have been prepared by the Water Services and Finance Departments, which define both the capital infrastructure requirements and financial requirements for the Water and Wastewater systems. 

 

The combined forecasted water and wastewater rates will increase the typical single-family customer’s water and wastewater charges by 7.2 percent in the first year.  This increase is 1.1 percent lower than last year’s forecast.  The combined impact on the typical single-family as compared to last year’s financial forecast is shown on the following page.  The lower rate increases over last year’s projections are attributed primarily to the deferral of capital projects that support growth, savings from refinancing existing debt, and lower than anticipated borrowing costs resulting from a favorable bond market.  The future rate increases shown below are still necessary to fund capital improvements and increased operating costs driven by federal mandates related to the water system and rehabilitation/replacement of the existing system.  A companion City Council Report prepared by the Water Services Department outlines specific projects in the five-year CIP for water and wastewater.

 

Currently, the average combined monthly water and wastewater charge for the typical single-family customer is $52.90.  The recommended rate increase for March 2010 will bring the average monthly charge to $56.68, an increase of $3.78 per month.  The typical single-family charges, including the proposed rate increase, are still relatively low compared to other cities.  Typical single-family water and wastewater charges in Phoenix are in the lower tier for the Phoenix metropolitan area and among the lowest in the southwestern United States and for the 20 largest U.S. cities.

IMPACT OF COMBINED WATER AND WASTEWATER RATES

ON TYPICAL SINGLE-FAMILY CUSTOMER

 

Date of            Increase	Combined Impact on Typical Single-Family Previous Forecast	Combined Impact on Typical Single-Family* New Forecast
3/10 3/11 3/12 3/13 3/14 3/15	8.3% 7.7% 7.7% 6.3% 6.3% Not Forecasted	7.2% 6.6% 6.6% 6.0% 6.0% 6.0%

 

*Actual increases may vary from those above depending on seasonal water use patterns and the strength of wastewater flows.  The combined impact is based on the weighted average for typical water and wastewater customer charges.  Currently, water accounts for approximately 60% and wastewater accounts for approximately 40% of the combined bill.

 

 

OTHER INFORMATION

 

The following sections outline the primary drivers requiring future rate increases beyond normal inflation. 

 

Water Financial Plan

 

The proposed 2010-11 to 2014-15 Five-Year Water CIP totals $921.8 million.  This includes projects necessary to meet future Safe Drinking Water Act Standards required by 2012, rehabilitation and replacement of water mains and other water infrastructure.

 

The Water Financial Plan assumptions include the current slowdown in the economy which is reflected in revenue and expenditure projections.  The Water Financial Plan incorporates the financing of $550.0 million of CIP needs through existing and planned bond authorizations.  This results in additional debt service of $54.2 million annually when full principal and interest occurs in 2019-20.  Additional CIP related operations and maintenance (O&M) costs contribute $7.7 million in 2010-11 and reach $60.0 million in 2019-20 when all new facilities are in service.  Nearly 90 percent of the increased O&M costs projected are associated with the new granular activated carbon facilities required to meet future Safe Drinking Water Act Standards.

 

This year’s projected rate increases remain relatively consistent with last year’s financial forecast.  The changes in the first two-year’s projected increases are primarily due to the delay of growth related capital projects, savings from refinancing debt, and last year’s favorable bond sale.  The forecasted water rate revenue increases as compared to last year’s financial forecast is shown on the following page.  

 

 

 

WATER RATE REVENUE INCREASE PROJECTIONS

PREVIOUS (LAST YEAR) VERSUS NEW FORECAST

Date of Increase   3/10 3/11 3/12 3/13 3/14 3/15

Rate Revenue Increase Previous Forecast   10.5 % 9.5 % 9.5 % 7.0 % 7.0 % Not Forecasted

Rate Revenue Increase New Forecast   9.0 % 8.0 % 8.0 % 7.0 % 7.0 % 7.0 %

 

 

Wastewater Financial Plan

 

The proposed 2010-11 to 2014-15 Five-Year Wastewater CIP totals $690.7 million.   This includes projects for rehabilitation and replacement of existing sewer lines, construction of new sewer lines, a plant expansion with construction beginning in 2014-15, and other wastewater infrastructure.  

 

Similar to the Water Financial Plan, the Wastewater Financial Plan was developed to forecast the revenue necessary to support future O&M costs and CIP costs of the Wastewater System.  The Wastewater Financial Plan is based on a series of assumptions including the slowdown in the economy and is reflected in future revenue, O&M costs and debt service costs.  The primary factors affecting the projected increases are general inflation, increases in O&M costs associated with the current CIP and new debt service to fund the CIP.  The Wastewater Financial Plan incorporates the financing of $600.0 million of CIP needs through existing and planned bond authorizations.  This results in additional debt service of $51.8 million annually when full principal and interest occurs in 2019-20.  Additional CIP related O&M costs reach $1.3 million in 2019-20 when all new facilities are in service.

 

The Wastewater Financial Plan reflects moderate and consistent rate increases throughout the five year period reflecting a stable capital improvement program.  The projected rates increases are slightly lower from last year’s forecast primarily due to the delays of growth related capital improvement projects.  The projected wastewater rate revenue increases as compared to last year’s financial forecast are illustrated on the following page.

 

   

WASTEWATER RATE REVENUE INCREASE PROJECTIONS

PREVIOUS (LAST YEAR) VERSUS NEW FORECAST

Date of Increase   3/10 3/11 3/12 3/13 3/14 3/15

Rate Revenue Increase Previous Forecast   5.0 % 5.0 % 5.0 % 5.0 % 5.0 % Not Forecasted

Rate Revenue Increase New Forecast   4.5 % 4.5 % 4.5 % 4.5 % 4.5 % 4.5 %

 

 

RECOMMENDATION

 

It is recommended that the Transportation, Infrastructure and Sustainability Subcommittee conceptually approve the 2010 Water and Wastewater Financial Plans.  The combined impact on the Financial Plans is an increase of 7.2 percent or $3.78 per month for the typical single-family customer.  This approval is in conjunction with the conceptual approval of the Water Services Department 2010-11 through 2014-15 Water and Wastewater Capital Improvement Programs. 

 

Transportation and Infrastructure Subcommittee, November 9, 2009 Item 19

CITY COUNCIL REPORT
TO:	Rick Naimark Deputy City Manager
FROM:	Neil Mann Public Works Director
SUBJECT:	SOLID WASTE FEES AND SERVICE LEVELS

 

This report discusses the Solid Waste enterprise fund status and options, and recommends a 1.9 percent increase ($0.50) in the monthly residential fee effective January 1, 2010 to maintain current service levels.  Staff requests that the Subcommittee recommend City Council approval of this recommendation or an alternative funding/expenditure option.

 

THE ISSUE

 

Since July 1980, funding for Solid Waste programs has been obtained through a fee-for-service enterprise fund.  Revenues for Solid Waste programs are generated by the monthly fee charged for residential household service, disposal fees charged at the transfer stations, and the sale of recycled materials.

 

Solid Waste expenditures are associated with the cost of providing a wide range of solid waste services to the community, including:  

 

Residential collection                                               Expansive Recycling program

Quarterly bulk trash collection                                  Illegal dumping crews

Transfer station and disposal                                  Free weekend disposal

Household hazardous waste events                       Education activities

Customer service staffing                                        Inspections and enforcement

Landfill long haul contract                                         Appliance and electronics diversion

Container repair and replacement                          Handling of dead animals

 

Fund Forecast

 

The Solid Waste fund forecast has been updated to include the latest revenue and cost projections.

 

In FY08-09, the Solid Waste fund received $136 million in revenue, which was $11 million lower than the forecast.  This was due to lower recycling revenue, higher residential vacancy rates, and higher delinquent accounts.  Staff offset the revenue decrease by lowering operating expenditures, maintaining staffing vacancies and reducing contractual and commodity expenditures.

 

For FY09-10, $138 million of revenue is being forecast.  The monthly residential fee equates to approximately 88 percent of total revenue, followed by recycling (5.7 percent) and landfill fees (4.7 percent).  Solid Waste operating expenditures are budgeted at $126.9 million, of which approximately 63 percent of operating expenditures are for personnel and equipment.

 

During 2009, staff has seen a decrease in solid waste tonnage hauled to City disposal facilities.  In response to the corresponding service demand decrease, staff reduced several operational areas including hauling costs, equipment usage, and staff overtime.

 

OTHER INFORMATION

 

Solid Waste capital needs are supported through capital bond financing.  The majority of Solid Waste capital expenditures are associated with landfill cell excavation, lining, environmental compliance, equipment, and infrastructure improvements.  The 2009 adopted five-year Solid Waste Capital Improvement Program totals $144 million, and is broken down as follows:

 

·        SR85 landfill              $91 million (64%)

·        Transfer Stations       $25 million (17%)

·        Closed Landfills        $21 million (14%)

·        Other                           $7 million (5%)

 

In the current forecast, the Solid Waste fund balance is projected to gradually decrease over the next five years to a level closer to the target of 7 percent of annual expenditures.  In previous forecasts, staff had projected annual $1.00 increases in the fee, along with periodic increases in disposal fees over the next five years, to maintain the integrity of the fund. However, due to expenditure reductions made in the current forecast, staff is able to recommend less than a $1.00 increase for this fiscal year.

 

Fee Options

 

Four options have been developed by staff regarding the monthly residential Solid Waste fee:

 

A)    A $1.00, or 3.7 percent, increase effective January, 2010. This would raise the residential fee from $26.80 to $27.80 and maintain the current level of solid waste services with no service reductions.

 

B)    A $0.50, or 1.9 percent, increase effective January, 2010. This would raise the residential fee from $26.80 to $27.30. This option includes a $1.8 million expenditure reduction with no customer service impacts.

 

C)    A $0.30, or 1.12 percent, increase effective January, 2010. This would raise the residential fee from $26.80 to $27.10. This option includes an additional $1.6 million of service reductions which are described in Attachment A.

 

D)    No increase which retains the residential fee at $26.80. This option requires service reductions of $2.7 million which are described in Attachment B.

 

In addition to these four options, other possibilities for service level reductions will be provided by staff at the Subcommittee meeting.

 

RECOMMENDATION

 

Based upon the revised Solid Waste revenue and expenditure forecast, staff recommends a 1.9 percent fee increase ($.50) in the monthly residential Solid Waste fee effective January 1, 2010 to maintain existing service levels.  This increase would raise the monthly fee to $27.30 from $26.80.  No increase in disposal fees is recommended.

 

If approved, these recommendations will be forwarded to the full City Council for consideration.

 

 

Attachments

 

Attachment A

 

 

Service Reductions with $0.30 (01.12%) Increase

 

Operational Ongoing Reductions	Positions	Amount
Eliminate funding for Valleywide Recycling Partnership could impact regional efforts.		$50,000
Elimination of position assigned to the SR85 Landfill may impact staffing coverage and operations.	1	$48,000
Elimination of a position would result in work being transferred to scale-house clerks, laborers and facilities staff; RFID tags, maintenance mister system, spotting, miscellaneous tasks.	1	$51,480
Elimination of a position assigned to the SR85 Landfill may impact staffing coverage and operations.	1	$65,570
Elimination of a position that would reduce safety training provided to operators and reduce safety monitoring.	1	$70,362
Eliminating a contract that would impact collection of excess bulk trash items in the event of a major storm or if crews fell behind schedule.		$412,920
Reduced funding for Keep Phoenix Beautiful will result in reduced educational opportunities for litter prevention and recycling.		$43,000
Eliminating Customer Support positions may increase wait times at the Solid Waste Call Center.	2	$106,008
Eliminating positions for day shift security services at both transfer stations would result in customer issues, which have been known to escalate, both verbally and physically.	2	$107,500
The closing of the transfer stations on certain Holidays would reduce the service convenience for citizens.  During the holidays, on average, the amount of tonnage collected is only 28% of daily tonnage total.  Overtime and equipment costs would be reduced by $20,845 per holiday.		$145,900
Closing North Gateway Transfer Station to the public on Sundays. The need for 7-day staffing coverage would also be eliminated.	3	$582,500
Total	11	$1,683,240

 

Attachment B

 

 

Service Reductions with No Increase

 

Operational Ongoing Reductions	Positions	Amount
Eliminate funding for Valleywide Recycling Partnership could impact regional efforts.		$50,000
Elimination of position assigned to the SR85 Landfill may impact staffing coverage and operations.	1	$48,000
Elimination of a position would result in work being transferred to scale-house clerks, laborers and facilities staff; RFID tags, maintenance mister system, spotting, miscellaneous tasks.	1	$51,480
Elimination of a position assigned to the SR85 Landfill may impact staffing coverage and operations.	1	$65,570
Elimination of a position that would reduce safety training provided to operators and reduce safety monitoring.	1	$70,362
Eliminating a contract that would impact collection of excess bulk trash items in the event of a major storm or if crews fell behind schedule.		$412,920
Reduced funding for Keep Phoenix Beautiful will result in reduced educational opportunities for litter prevention and recycling.		$43,000
Eliminating Customer Support positions may increase wait times at the Solid Waste Call Center.	2	$106,008
Eliminating positions for day shift security services at both transfer stations would result in customer issues, which have been known to escalate, both verbally and physically.	2	$107,500
The closing of the transfer stations on certain Holidays would reduce the service convenience for citizens.  During the holidays, on average, the amount of tonnage collected is only 28% of daily tonnage total.  Overtime and equipment costs would be reduced by $20,845 per holiday.		$145,900
Closing North Gateway Transfer Station to the public on Sundays. The need for 7-day staffing coverage would also be eliminated.	3	$582,500
Reducing bulk trash collection from four to three times per year may compromise the integrity of City neighborhoods.	17	$1,025,730
Total	28	$2,708,970