The URL can be used to link to this page

Home My WebLink AboutCC - Agendas - City Council - STUDY SESSION - 1/22/2019 CITYoFPRESCOTT CITY COUNCIL MEETING / / we � soww L�l7C/' 9*. J 1-ZOm..C6W/L STUDY SESSION MEETING AGENDA TUESDAY, JANUARY 22, 2019, 1:00 PM Council.Chambers, 201 South Cortez Street Prescott AZ 86303 (928) 777-1272 Greg Mengarelli, Mayor Billie Orr, Mayor Pro Tern Jim Lamerson, Councilman Steve Blair, Councilman Alexa Scholl, Councilwoman Phil Goode, Councilman Steve Sischka, Councilman The following Agenda will be considered by the Prescott City Council at its Study Session Meeting pursuant to the Prescott City Charter, Article II, Section 13. Notice of the meeting is given pursuant to Arizona Revised Statutes, Section 38-431.02. One or more members of the Council may be attending the meeting through the use of a technological device. 1. CALL TO ORDER 2. ROLL CALL 3. DISCUSSION A. Presentation of Final Water and Wastewater Rate Study. B. Update of the Development Impact Fee Process. C. Presentation by Public Works on 2018 Capital Projects. 4. ADJOURNMENT EXECUTIVE SESSION Upon a public majority vote of a quorum of the City Council, the Council may hold an executive session,which will not be open to the public, regarding any item listed on the agenda but only for the following purposes: (1) Discussion or consideration of personnel matters(A.R.S. §38-431.03(A)(1)); (2) Discussion or consideration of records exempt by law(A.R.S.§38-431.03(A)(2)); (3) Discussion or consultation for legal advice with the city's attorneys .(A.R.S. §38- 431.03(A)(3)); (4) Discussion or consultation with the city's attorneys regarding the city's position regarding contracts that are the subject of negotiations, in pending or contemplated litigation, or in settlement discussions conducted in order to avoid litigation (A.R.S. §38-431.03(A)(4)); (5) Discussion or consultation with designated representatives of the city to consider its position and instruct its representatives regarding negotiations with employee organizations (A.R.S.§38-431.03(A)(5)); (6) Discussion, consultation or consideration for negotiations by the city or its designated representatives with members of a tribal council, or its designated Generated 1/14/2019 1:00 PM Prescott City Council Study Session Meeting — 01/22/2019 Page 2 representatives, of an Indian reservation located within or adjacent to the city (A.R.S. §38-431.03(A)(6); (7) Discussion or consultation with designated representatives of the city to consider its position and instruct its representatives regarding negotiations for the purchase, sale or lease of real property(A.R.S. §38-431.03(A)(7)). THE CITY OF PRESCOTT ENDEAVORS TO MAKE ALL PUBLIC MEETINGS ACCESSIBLE TO PERSONS WITH DISABILITIES. With 72 hours advanced notice, special assistance can be provided for sight and/or hearing-impaired persons at this meeting. Reasonable accommodations will be made upon request for persons with disabilities or non-English speaking residents. Please call the City Clerk (928) 777-1272 to request an accommodation to participate in this public meeting. Prescott TDD number is (928)445-6811.Additionally,free public relay service is available from Arizona Relay Service at 1-800-367-8939 and more information at www.azrelay.ora Confidentiality Arizona statute precludes any person receiving executive session information from disclosing that information except as allowed by law. A.R.S. §38-431.03(F). Each violation of this statute is subject to a civil penalty not to exceed $500, plus court costs and.attorneys' fees. This penalty is assessed against the person who violates this statute or who knowingly aids, agrees to aid or attempts to aid another person in violating this article. The city is precluded from expending any public monies to employ or retain legal counsel to provide legal services or representation to the public body or any of its officers in any legal action commenced for violation of the statute unless City Council takes a legal action at a properly noticed open meeting to approve of such expenditures prior to incurring any such obligation or indebtedness.A.R.S. §38-431.07(A)(B). CERTIFICATION OF POSTING OF NOTICE The u ers nod hereb certifies that a copy of the foregoing notice was duly posted at Prescott City Hall on 17 y at 5 .600. m. in accordance with the statement filed by the Prescott City Council with the ity erk / VIA -_. 160164- Maureen Scott,MMC,City Clerk • 3.A I cITYo PRESCOTT Epryl✓ COUNCIL AGENDA MEMO MEETING DATEITYPE: STUDY SESSION MEETING 1-22-19 DEPARTMENT: Finance AGENDA ITEM: Presentation of Final Water and Wastewater Rate Study. Approved By: Michael.Lamar, City Manager Item Summary This item is an update of the water and wastewater rate alternatives from the Raftelis study, which is available on the City's website. Background On August 28, 2018, Council received a presentation from Raftelis consultant regarding updating the water, wastewater, and solid waste rate study. The presentation of the preliminary water and wastewater study happened at the November 27th Council workshop with the final report posted on the City's website January 11, 2019, at http://www.Drescott-az.aov/water-sewer/utilitv-billina/rate-settina-process/ . The public hearings will be held on January 22 and February 12, 2019, followed by a Council vote. Following is the complete schedule of the rate setting process. I Packet Pg.3 • I 3.A I I AGENDA ITEM: Presentation of Final Water and Wastewater Rate Study. Water,Wastewater,and Solid Waste Rate Setting Process Date Type / Description October 23, 2018 (Council Voting(3:00pm) Adoption of notice of intent to increase water and wastewater, and set public hearing date November 21, 2018 City's Website Publish notice of intention to increase solid waste rates, publish rate report, and notice of the public hearing November 27, 2018 Council Workshop(1:00pm) Presentation of water and wastewater study results November 27, 2018 Public Workshop(6:00pm) Presentation of water and wastewater study , results December 4, 2018 Public Workshop(6:00pm) Presentation of water and wastewater study results December 18, 2018 Council Workshop(1:00pm) Presentation of solid waste study results January 22, 2019 Council Workshop(1:00pm) Presentation of updated water and wastewater study results January 22, 2019 Council Voting(3:00pm) Adoption of solid waste rates. Public hearing on proposed water and wastewater rates February 12, 2019 Council Voting(3:00pm) Public hearing on proposed water and wastewater rates. Adoption of water and wastewater rates. March 1,2019 New solid waste rates effective April 1,2019 New water and wastewater rates effective Recommended Action: This is for presentation only. No action will be taken. 2 Packet Pg.4 I City of Prescott - - -- - Arizona - Water and Wastewater Financial Plan and Rate Study. Update January 22,2019 Presented by Andrew Rheem RAFTE L IS ---- ,-- , AGENDA > Objectives > Financial plan and capital projects > Rate Alternatives and Bill Impacts • Wastewater Fund > Objectives > Financial plan and capital projects > Rate Alternatives and Bill Impacts • Typical Monthly Water and Wastewater Bills • Survey Comparison • Discussion 2 ,. Yf --MSRB REGISTERED MUNICIPAL ADVISOR Raftelis is a Registered Municipal Advisor within the meaning as defined in Section 15B (e) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (Municipal Advisor Rule). However,except In circumstances where Raftells expressly agrees otherwise in writing,Raftells Is not acting as a Municipal Advisor,and the opinions or views contained herein are not Intended to be,and do not constitute"advice"within the meaning of the Municipal Advisor Rule. 3 i . . WaterFUnd ,„ 4 WATER RATE OBJECTIVES • Levelin.g_of-rate:adjustments avoiding sharp annual changes • Continue the present conservation/water-use efficiency oriented pricing structure that has proven to be effective • Provide a stable source of revenue as the. City providing funding for planned water capital projects • Evaluate Aquifer protection fee, Alternative water fee and Outside City rate multipliers • Maintain customer class cost of service rate recovery 5 . + I MAJOR WATER CAPITAL OFUND CA PITAL • � { PROJECTS • FY19-FY23 total $90.9M_in-capital before inflation { . > $94.9M;after-inflation -•-Intermediate and Chino Booster Pump Stations- $22.6M in FY19- {- �- FY21 . • Chino Valley Production Well No. 1 through 5 Rehabilitation- $10.6M in FY19-FY22 • Zone 16 Virginia Pump Station, Haisley Tank and Haisley Road Piping - $5.7M in FY19-FY20 • Zone.56Tank and Pipeline, Zone 7 Booster Station -$5.3M in FY19-FY22 . • Mingus Pump Station, Tank and Pipeline upsize-$5.3M in FY 19- FY21 • Airport Well No. 5 -$2.3M in FY19FY20 • Airport Well No. 6_$2.5M in FY20-FY21 • Upsize water mains from Zone 27 tank to Zone 24 tank_$3.2M in FY19-FY21 • Zone 30 Booster Pump Station at Hidden Valley- $2.2M in FY21 • Various water main replacements-$12.0M in FY19-FY23 6 WATER -RATE ALTERNATIVES n - _ •..All alternatives maintain Aquifer Protection Fee at current levels and recover customer class cost of'service and annual revenue needs > Adjust Outside City multiplierfrom-40%to 30% > Maintain Chino_Valley multiplier at 30% • .Alternativ 1— Included in November 2018 Presentation 1--- > Increases base charge by meter size > Increases volume rates by customer class Water allocations by tier unchanged — Increased volume rates by tier > Alternative Water Surcharge remains at current levels of$0.89 per kgal • Alternative 2— Included in November 2018 Presentation > No increase to base charge by meter size > Increases volume rates by customer class — Water allocations by tier unchanged — Increased volume rates by tier including higher Tier 2,3 and 4 rates > Alternative Water Surcharge remains at current levels of$0:89 per kgal • Alternative 3 — Developed since the November 2018 Presentation > Increases base charge by meter size same as Alt.1 > Increases volume rates by customer class — Water allocations by tier unchanged — Increased volume rates by tier > Alternative Water Surcharge eliminated and incorporated in tiered rates 7 a �. =ALTERNATIVE WATER FEE BACKGROUND 'AND. HISTORY •_Established in 1982 as uniform rate per 1,000 gallons to fund City's Central Arizona Project (CAP) costs > Was referred tows "Central Arizona Project Charge" > Renamed the "Alternative Water Fee" in the 1990's following City selling water rights in CAP • Fee has been used to: > Purchase Willow and Watson Lake water rights > Explore other alternative water sources Fund water conservation program > Pay portion of Big Chino Water Ranch including City portion of Comprehensive Agreement No. 1 (with SRP and Prescott'Valley) > Fund drilling and water production facilities near Airport 8 WATER RATE ALTERNATIVES 1AN- -3""- Description Alt 1 Alt 3 Generate sufficient annual revenues ,I Yes II Yes -` [ Maintains current Aquifer Protection Fee • Yes Yes Phases to Customer Class Cost of Service by FY 2022-23 I Yes I Yes Reduces Outside City Multiplier to 1.30 times inside City rates Yes Yes Increases Base Charge Annually I Yes I Yes i Maintains current Alternative Water volume Surcharge , Yes No Eliminates Alternative Water volume Surcharge No RI Yes i Increases revenue recovered through Tier 2,3 and 4 Use ? No Yes 9 PROPOSED WATER BASE_CHARGE Meter I_--4/1/2019 -~I 1/1/2020 I 1/1/2021 I 1/1/2022 I 1/1/2023 Size " Current I Alt 1 I Alt 3 I Alt 1 I Alt 3 I Alt 1 I Alt 3:I Alt 1 I Alt 3 I Alt 1 I Alt 3 5/8" $13.69 $14.10 $14.10 $14.52 $14.52 $14.96 $14.96 $15.26 $15.26 $15.56 $15.56 3/4" 14.43 14.86 14.86 15.31 15.31 15.77 15.77. 16.09 16.09 16.41 16.41 1" 16.34 16.83 16.83 17.34 17.34 17.86 17.86 18.22 18.22 18.58 18.58 11/2" 20.09 20.69 20.69 21.31 21.31 21.95 21.95 22.39 22.39 22.84 22.84 2" 26.53 27.33 27.33 28.15 28.15 28.99 28.99 29.57 29.57 30.16 30.16 3" 39.47 40.65 40.65 41.87 41.87 43.13 43.13 43.99 43.99 44.87 44.87 4" 57.94 59.68 59.68 61.47 61.47 63.31 63.31 64.58 64.58 65.87 65.87 6" 104.10 107.22 107.22 110.44 110.44 113.75 113.75 116.03 116.03 118.35 118.35 8" 159.61 164.40 164.40 169.33 169.33 174.41 174.41 177.90 177.90 181.46 181.46 Percent Change 3% 3% 3% 3% 3% 3% 2% 2% 2% 2% io -. PROPOSED AQUIFER PROTECTION FEE......;-------- ALTERNATIVES 1AND3 , .-- ----�-f " Meter; -: .,:�--- Size+--- Current 4/1/2019 1/1/2020 1/-1/2021 1/1/2022 1/1/2023 5/8" $0.72 $0.72 $0.72 $0.72 $0.72 $072 3/4" . 1.08 1.08 1.08 1.08 1.08 1.08. . 1" 1.20 1.20 1.20 1.20 1.20 1.20 1 1/2" 2.40 2.40 2.40 2.40 2.40 2.40 2" 3.84 3.84 3.84 3.84 3.84 3.84 3" 7.20 7.20 7.20 7.20 7.20 7.20 4" 12.00 12.00 12.00 . 12.00 12.00 12.00 6" 24.00 24.00 24.00 24.00 24.00• 24.00 8" 38.40 38.40 38.40 38.40 38.40 38.40 Percent Change 0% 0% 0% 0% 0% q_ - 11 . . ALTERNATIVE. 1.FAND-3 _ VOLUME: RATES ~J I I. 4/1/2019-1 . 1/1/2020 I 1/1/2021 I 1/1/2022 I 1/1/2023• t ICustomerClass TierWidth(1)-I-Current I Alt1 I Alta I Alt1 'I Alt3 .I Alt1 I Alt3 I Alt1 'I Alt3 I Alti I Alt3 ! `"'-Start to End . inside city Gallons Single Family . Tier 0 3,000 $3.24 $3.36 $4.00 $3.49 $4.13. $3.63 $4.26 '$3.72 $4.35 $3.81 $4.44 Tier2 3,001 10,000 4.86 5.05 6.00 5.24 6.20 :5.44 6;39 5.58 6.53 5.72 6.66 Tier3 10,001 20,000 7.29 7.57 9.00 7.86 9.29 8.16 9.59 8.36 9.79 8.57 9.99 Tier4 Over 20,001 14.58 . 15.14 18.00. 15.72 18.59 16.32 19.17 16.73 19.58 17.15 19.98 Multi-Family Tier 1 0 1,700 $2.93 $3.07 $3.66 $3.21 $3.80 $3.36 $3.95 $3.46. $4.05 $3.56 ; $4.18 Tier2 1,701 5,000 4.40 .4.61 5.49 4.82 5.70 5.04 5.93 5.19. 6.08 5.34 6.27 Tier 5,001 10,000 6.59 6.90 8.24 7.22 8.55 7.55 8.89 7.78 9.11 8.01 9.41 Tier4 , Over 10,001 13.19 13.81 16.47 14.45 17.10 15.11 17.78 15.56 18.23 16.02' 18.81 Non-Residential Tier1 0 6,000 $3.54 $3.68 $4.27 $3.82 $4.41 $3.97 $4.56 $4.08 $4.67 $4.18 $4.76 Tier2 6,001 28,000 5.31 5.52 6.41 5.74 6.62 5.96 6.84 6.11 7.01 6.27 7.14 Tier3 28,001 60,000 7.97 8.29 9.61 8.61 9.92 8.95 10.26 9.18 10.51 9.41 10.71 Tier4 Over 60,001 15.93 16.56 19.22 17.21 19.85 17.88 20.52 18.34 21.02 18.81 21.42- Alt.Water Surcharge $0.89 $0.89 $0.00 $0.89 $0.00 $0.89 $0.00 $0.89 $0.00 $0.89 $0.00. (1)Multi-Family tier allocations are provided per dwelling unit.Non-residential customer tier allocations increase by meter size.5/8"x 3/4" 12 (smallest meter size)are summarized in this table. c ADDITIONAL VOLUME RATES . ' i 'ALTERNATIVES 1 AND '3 _. : _ - --- ;r Pioposed�Volume-Rate-(per i,00o gallons):( l " Current Customer Cbs3 ,FY 2018-19 14/1/2019; 11/1/2020 I'i/1'/2021 11/1/2022 I _1/1/2023, Cons4ruttion/Hytliant $4.13 '$4 92. $3.06 $'Sr20. $5:30: $5.43. 'Coir Operated Water 3:43 3 83 4.23 4L63 4.90' ` 5.27,, " (1)Multi-family tier allocations are provided per dwelling unit.Non-residential customer tier allocations increase by meter size.5/8"x 3/4" 13 (smallest meter size)are summarized in this table. RESIDENTIAL CUSTOMER MONTHLY.:� P— -A- —' BILL IMPACTS - WATER ----- 4/1/2019 1/1/2023 . r Volume (kgal) _ Current Alt 1 Alt 3 Alt 1 :-.Alt 3 3 $26.80 $27.57 $26.82 • $30.38 - $29.60 5 38.30 39.45 38.82 43.60 . 42.92 . 10 - 67.05 69.15 . 68.82 76-.65 76.22 20 148.85 153.75 158.82 -171.25 176.12 30 303.55 314.05 338.82 351.65 375.92 4. . . . 14 Wastewater Fun• 1 . - I - ` dry 15 1 ' WASTEWATER RATE OBJECTIVES- 4 • Leveling-of-rate adjustments avoiding sharp - ------annual changes • Provide a stable source of revenue as the City providing funding for planned wastewater capital projects and debt service • Maintain customer class cost of service rate recovery • Review treated effluent rate 16 r.._._.�._,__._......... rn_�...__�_..-•-_----,.-�._._-.--.-�..._�._-. ram.. ___._...._ _ _ _.� MAJOR WASTEWATER FUND CAPITAL PROJECTS • FY19-FY23 total $63.0M in capital before inflation > $67.4M after inflation • Sundog Trunk Main Phase B and C $9.7M in FY19- FY21 • Airport Trunk Main - $9.9M in FY19-FY20 • Centralization SR89 Lift Station - $2.9M in FY19- FY20 • Willow Creek Trunk - $3.2M in FY21-FY22 • Hassayampa Trunk Main - $4.0M in FY22 • Airport WRF Phase II - $18.8M in FY23 • Various Main Replacements - $4.2M in FY19-FY23 17 PROPOSED WASTEWATER AND VOLUME RATES------- - 1 Description- 1 Current 1 4/1/2019 1/1/2020 1/1/2021 1/1/2022 1/1/2023:j Annual%Increase in Revenue-Rates 3% 3% 4% 4% 4% Monthly Service Charge Residential ' $21.47 $21.47 $21.47 $21.47 -$21.47 $21.47 Nonresidential(General) 21.47 21.47 21.47 21.47 ,21,47 21.47 Volume Rates per 1,000 gallons Residential $5.52 $5.86 $6.21 $6.70 $7.20 $7.72 Nonresidential(General) 6.17 6.36 6.55 6.82 7.09 7.38 Septage Hauler 100.00 100.19 100.39 100.67 100.95 101.25 18 TREATED EFFLUENT RATE= • Water produced_at-city WWTP and WRF sold for irrigation Industrial, and non-potable uses • Contracted customer rates are limited to inflation • Non-contract customer rates are not limited by,contract > Recommend phasing to 60% of the average potable water rate by 2023 — Current is 37%of average volume rate Description Current 41112019 1/1/2020 11112021 1/1/2022 11112023 Non-Contract Effluent Rate($per AO $783 $880 $977 $1,073 $1,170 $1,267 19 RESIDENTIAL CUSTOMER MONTHLY---. BILLS - WASTEWAT.E:R- - F Y_ Use Proposed Proposed kgal Current 3/1/2019 1/1/2023 3 38.03 39.05 44.63 5 49.07 50.78 60.07 7 60.11 62.50 75.51 20 WATER AND WASTEWATER TYPICAL RESIDENTIAL MONTHLY BILL (1) $90 $88.26 $85.85 $83.47 $87.58 $80.77 $85.19 $80 $78.50 $82.81 $76.33 $80.16 $77.87 $76.33 $70 Current FY19 FY20 FY21 FY22 FY23 —Alt. 3 —Alt. 1 (1) 5/8-inch water meter using 5,000 gallons per month for water and 3,000 in the winter period for wastewater volume. 21 RESIDENTIAL WATER AND WASTEWATER BILL COMPARISONS Residential Rate Comparison - 5,000 Gallons Water and 3,000 Gallons Wastewater Chino Valley 29.33 Prescott-Alt.1(2019) $39.45 " = , Prescott-Alt.3(2019) $38.82 39.05 Prescott-Current 38.30 Cottonwood $44.26 Prescott Valley $25.05 18.69 $0 $20 $40 $60 $80 $100 $120 ■Water Bill in Wastewater Bill 2 . Discu=ss�ion • • 23 a n u Contacts: Andrew Rheem 303 305 1137/arheem@raftells.com 24 - 3.B I CPTYor PRESCOTT Evfy�e0/10 . o,, COUNCIL AGENDA MEMO MEETING DATE/TYPE: STUDY SESSION MEETING 1-22-19 DEPARTMENT: Finance AGENDA ITEM: Update of the Development Impact Fee Process. I Approved By: Michael Lamar, City Manager Item Summary This presentation is an update of the development impact fee process, which was started on August 28, 2018. The Infrastructure Improvement Plan (IIP) and the Land Use Assumption (LUA) with be presented in detail in preparation for the Public Hearing that will be held at the 3:00pm Council Meeting. Background On August 28, 2018, Council received a presentation from Raftelis, the City's consultant, regarding updating Development Impact Fees for Water Resources, Water System Impacts and Wastewater System Impacts. The study also includes review and recommendations for adoption of new Development Fees related to Streets, Police, Fire and Parks. Council adopted a Notice of Intention to set a Public Hearing for January 22, 2019, regarding the updated IIP and LUA at its November 13, 2018, meeting. Staff has been working with the consultant and the Mayor's Commission to refine the IIP and LUA. These changes will be discussed in detail in preparation for the Public Hearing on the IIP and LUA at the 3:00pm Council Meeting and the Council consideration of the final IIP and LUA at the February 26, 2019, Council Meeting. Financial Impact The IIP and LUA are the basis for determining the proposed Development Impact Fees which are critical in the funding of needed infrastructure. " Recommended Action: This is for presentation only. No action will be taken. I Packet Pg.5 , City. of Prescott Council Meetin - _ --- g Utility and Non-Utility Development Impact Fee Studies January 22,20.19 Presented by Andrew Rheem RAFTELIS Agenda Study Overview -and City Development Impact Fee (DIF) ---History • Arizo.na Revised Statutes (ARS) Requirements • Mayor's Commission Process • Infrastructure Improvements Plan (IIP) by DIF Category • Updated DIFs and DIF Comparisons • DIF Process Next Steps 2 Development Impact Fees (DIEs) Evaluated _-_ ----=•-U-pda- te Existing Utility DIFs - > Water System > Water Resource > Wastewater System • Evaluate Feasibility of Non-Utility DIFs (1) > Street > Park & Recreation ' > Fire > Police (1) Library DIF category determined to not be feasible in October 2018 3 and is not included in the draft LUA and IIP posted in November 2018. DIF Study Considerations -= _ • Compliance with=requi"cements of ARS §9- 463.05-_--- -- •-Sufficiency of fees reflecting the updated LUA and IIP - • Current and modified service area designations • DIFs aligned with updated Land.Use Assumptions (LUA) and IIP and development patterns • Implementation and administration considerations • DIF assessment schedules for residential and non-residential developments - 4 DIF History November 2011 — Public Buildings and Recreation DIFs eliminated following adoption of modified ARS §9-463.05 December 2012 - Library and Park and Recreation DIFs eliminated following growth-related CIP assessment April 2014 - Street DIFs eliminated following further investigation August 2014 — Updated Water System, Water Resource and Wastewater System DIFs implemented Established 10 Water System DIF service areas Established 1 Water Resource DIF service area Established 9 Wastewater System DIF service areas December 2014 - Police and Fire DIFs eliminated ARS §9-463.05 Sets forth specific procedures and public process for City Council review, adoption and implementation of DIFs ittyjLAND USE ASSUMPTIONS (LUA) INFRASTRUCTURE IMPROVEMENTS PLAN (IIP) DEVELOPMENT IMPACT FEE (DIE) REPORT 6 ARS DIF Requirements — At least 225 Days from Notice of Intent to Full Implementation LUA and IIP Public Hearing Notice of Intent Requirements At Least 60 Days Before Public Hearing, Publish Documents LUA and IIP Public Hearing 30 to 60 Days after Public Hearing To Act on LUA and IIP i DIF Public Hearing Notice of Intent Requirements At Least 30 Days Before Public Hearing, Publish Documents i DIF Public Hearing 30 to 60 Days after Public Hearing To Act on Proposed DIFs Implementation of DIFs At least 75 Days after Adoption Mayor's Commission for DIF Study Commission's role: provide feedback and advise Raftelis, City Staff and City Council regarding the utility and non-utility LUA, IIP and DIFs Commission members Dean Lyon, P.E., Lyon Engineering > Michael Taylor, Taylor Architects > David Grounds, Dorn Homes > Brian Bombardieri, B's Contracting / YCCA > Michael Yarnes, Rent Right Management Services Four meetings completed 10/9/18, 11/7/18, 11/28/18, and 1/9/19 DIF Recommendations Utility DIF service areas- )-Consolidate-Water System DIF to 2 - > -Consolidate Wastewater System DIFs to 1 > Maintain 1 Water Resource DIF . . • Continue to pursue non-utility DIFs for: > Streets > Police > Fire • Evaluate preliminary DIFs to be finalized as process continues > Maintain meter size based fees for all assessment categories > Non-utility residential fee assessment categories > Non-utility non-residential fee assessment by square foot 9 lip Facilities lr' f ' 10 Water System Capital Projects N $35.0 c Total :$117.6M .2 $30.0 Funded by Impact Fees: $22.9M $25.0 Rate Funded :$94.7M $20.0 $15.0 $10.0 $5.0 1111111 $0.0 MO IN I FY FY FY FY FY FY FY FY FY FY 2018-19 2019-20 2020-212021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 I Impact Fee Funded I Rate Funded Wastewater System Capital Projects $25.0 0 $20.0 Total : $79.1M Funded by Impact Fees : $36.4M Rate Funded : $42.7M $15.0 $10.0 :: I . NM FY FY FY FY FY FY FY FY FY FY 2018-19 2019-20 2020-212021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 ■Impact Fee Funded I Rate Funded 12 v ' Preliminary Streets -IIP , Project • Additional Growth Growth Cost Funded by Location Total Cost Funded by ' Other Description Lane Miles Share • Impact Fees Revenues , } SR 89 Widening(2. Willow Lake Rd to 1lto 4 lanes) IPhippen Trail 4.20 $8,620,0001 50% . $4,310,000 $4,310,000 . - Construct Phippen Larry Caldwell Dr to - Removed 2 0.70 $6,700,000 100% .. $6,700,000 $0 Trail(4-lanes) Granite Dells Pkwy V Turn Lanes on SR 89 to Willow Willow Lake Rd hake Rd 0.00 53,090,0001 25% . $772,500 $2,317,500 Construct Granite 4,Creek Crossing(4 Phlppen.Trail .0.15 51,900,000 100% •$1,900,000 $0 ') lanes) . Willow Creek Sllmp o vements :IWillow Lake Rdd& 0.00 $1;580,000 25%e• $395,000 $1,185,000 Roundabout.or'' ,° - '.. 6 Signalization with, Four Points 0.00 $1;320,000 25% :i $330,000 :$990,000 turnianes ., , 7lIntersection IPrescott Lakes Pkwy Improvements _--'&Willow Lake'Rd' 000 I $600 OOOL 4 25% , , $150,000I $450,000 8 IImprovements &Sundog Ranch d) o:oo $400 OO, 25Lakes % - , $100,000 $300 • 000 Traffic Signal Willow Creek Rd '' - 9 - '(Pioneer'Pkwy to- I I 0.00 , $262 000 - 25% : . $65 500 $196 500 Coordination Four Points) " t Total 5.05 $24,472,000 60% $14,723,000 $9,749,000 13 Modified. Streets IIP.' .. Project Descriptionh --- Additional Growth Growth Cost Funded by . . Location Total Cost Funded by Other Lane Miles Share Impact Fees Revenues Turn Canes on SR 89 to Willow Lake 1 Willow Lake Rd LRd 0.00 I $3,090,0001 25% $772,5001 $2,317,500 .. Construct Granite 2 Creek Crossing(4 Phippen Trail 0.15 $1,900,000 100% $1,900,000 ` $0 lanes). . - Intersection Creek Rd'& " 3 • • 0 00 -$1,580 000 25% ,$395 000 $1 185,000 Ilmprovements , 1Willow WillowLakeRd: . I'" .-- ,. Roundabout or , - . 4 Signalization with Four Points 0.00 $1,320 000 25%_ $330,000 15990,000 turn lanes . 1 5 Improvements - 1Prescott Lakes_Pkwy 0 00 ,YI -$600,000I;. 25% .'' $150 000 ' $450,000 &Willow Lake Rd - 6 Intersection IPrescott Lakes Pkwy-.I * 00u I $400000I.4- 25% _ $1000OOI $300,000 Improvements • - °&Sundog Ranch-Rd) Traffic Signal "Willow Creek Rd' 7 Coordinations (Pioneer Pkwy to Four '- 0 00 ,' -$262 000 25% $65 500 : $196,500 Points) mi ' Total 0.15. $9,152,000 41% $3,713,000 55,439,000ligti ' 74 Parks IIP - Two Projects Removed—From IIP Growth Cost Growth infrastructure Requested, Growth Total Cost Description Quantity Over Factor per Cost Units Quantity Share (rounded) Ten Years Unit (rounded) Heritage Park 4-plex field o with synthetic turf acres 20.1 25 80/ $295,000 1$7,380,0001$5,900,000 I I I Trail hea d parking lot withl count I 1.3 I . 1 100% l $400,000 $400,000 $400,000 restrooms Total=> $7,780,000 $6,300,000 Impact Fee Fund Balance=> $434,000 Funded by Other Revenues=> $1,480,000 Net Growth Cost=> $5,866,000 • Growth Share = Growth Quantity Over Ten Years divided by Requested Quantity • Total Cost = Cost Factor Per Unit multiplied by Requested Quantity • Growth Cost = Total Cost multiplied 'by Growth Share 15 Police IIP No .Revisions Proposed Growth Infrastructure Quantity Over Requested, Growth . Cost Total Cost Growth Cost Description Units Quantity. Share Factor (rounded) (rounded) Ten Years -IP IiceBuildings[1] Isquare feet I 5,758 I 12,157 -I 47%I $3501 $4,250,000I $2,010,000 !Police Vehicles (count I 8 I 8. I 100%I.$83,000I $660,0001 $660,000 Total=> $4,910,000 $2,670,000 Impact Fee Fund Balance=> :$862,000 Funded by Other Revenues=> $2,240,000 Net Growth Cost=> $1,808,000 )1]Square feet of new police headquarters is based on . from Otivell Associates Architects(2014)and the police building cost factor is from 2009 LUA. •. Growth Share = Growth Quantity Over Ten Years divided by Requested Quantity • Total Cost = Cost Factor Per Unit multiplied by . Requested Quantity • Growth Cost = Total Cost multiplied by Growth Share 16 • Fire IIP No Revisions Proposed Infrastructure x--Growth. Requested Growth Cost Growth Cost Description Total Cost Units Quantity Quantity Share Factor (rounded) Relocate FS-73 'square feet 1 5,600 1 10,000 1 56%I $320 -1$3,200,000,I$1,790,000 Vehicles (count 1 4 1 4 1 100%I$137,000I $550,000 1 $550,000 ; Total=> $3,750,000 $2,340,000 Impact Fee Fund Balance=> . $808,000 Funded by Other Revenues=> $1,410,000 Net Growth Cost=> $1,532,000 • Growth Share.= Growth Quantity Over Ten Years divided by Requested Quantity • Total Cost = Cost.Factor Per Unit multiplied by Requested Quantity . • Growth Cost= Total Cost multiplied by Growth Share R 17 l •T1. . ' f DIF Com£ arisons ,. . p , ,,, 4 _ , 4 K „,, - , , , ,„4., r `ry . 4 „ 1 r R. �' 18 Residential DIF Comparison (1) Prescott Prescott Prescott Prescott Current Initial Updated Prescott Chino Fee Category 2012 Max. (2) 2019 2019 Valley Valley(3) Water $5,389 $4,090 $5,134 $5,134 $1,491 $4,120 Water Resources 4,945 1,480 1,441 1,441 1,526 0 Wastewater 1,800 3,562 3,134 3,134 3,014 6,180 Street 469 0 3,498 882 1,784 0 Park & Rec. 715 0 2,273 0 1,374 0 Police (4) 589 0 460 460 449 0 Fire (4) 525 0 392 392 0 0 Library/Cultural 253 0 0 0 1,589 0 Total $14,685 $9,132 $16,332 $11,443 $11,227 $10,300 (1) Assumes"Large"sized residential development with 5/8 x'/,-inch meter. (2) Current maximum reflects new development within Water Service Area E and Wastewater Service Area G.The current minimum occurs within Water Service Area B and Wastewater Service Area I. (3) Chino Valley eliminated non-utility DIFs in 2014. (4) Prescott Valley has a public safety fee with fires services provided by a fire improvement district. Multi-Unit Residential DIF Comparison (1) Prescott Prescott Prescott Prescott Current Initial Updated Prescott Chino Fee Category 2012 Max. (2) 2019 2019 Valley Valley(3) Water $17,945 $13,620 $17,096 $17,096 $7,455 $37,390 Water Resources 16,466 4,932 4,798 4,798 7,630 0 Wastewater 17,920 11,861 10,436 10,436 15,071 98,880 Street 7,150 0 12,430 5,360 11,900 0 Park & Rec 5,250 0 21,260 0 0 0 Police (4) 5,890 0 2,510 2,510 3,890 0 Fire (4) 4,690 0 2,140 2,140 9,410 0 Library/Cultural 2,530 0 0 0 9,980 0 Total $77,841 $30,413 $70,670 $42,630 $65,336 $136,270 (1) Assumes"Small"sized residential development with 1 1/2-inch and 10 dwelling units and 320 fixture units. (2) Current maximum reflects new development within Water Service Area E and Wastewater Service Area G.The Current minimum occurs within Water Service Area B and Wastewater Service Area I. (3) Chino Valley eliminated non-utility DIFs in 2014.Wastewater is reflects 20 fixture units per EDU and fee per EDU of$6,180. (4) Prescott Valley has a public safety fee with fires services provided by a fire improvement district. Non-Residential "A" DIF Comparison (1) Prescott Prescott Prescott Prescott Current Initial Updated Prescott Chino Fee Category 2012 Max. (2) 2019 2019 Valley Valley(3) Water $28,723 $21,798 $27,364 $27,364 $11,928 $22,134 Water Resources 26,357 7,894 7,680 7,680 12,208 0 Wastewater 17,920 18,986 16,704 16,704 24,114 123,600 Street 0 0 108,800 27,200 25,200 0 Park & Rec 0 0 14,000 0 2,400 0 Police (4) 0 0 12,000 12,000 17,600 0 Fire (4) 0 0 14,800 14,800 0 0 Library/Cultural 0 0 0 0 0 0 Total $73,000 $48,678 $201,348 $105,748 $93,450 $145,734 (1) Assumes 40,000 sq.ft.developed building with 2-inch water meter and 400 fixture units. (2) Current maximum reflects new development within Water Service Area E and Wastewater Service Area G.The current minimum occurs within Water Service Area B and Wastewater Service Area I. (3) Chino Valley eliminated non-utility DIFs in 2014.Chino Valley eliminated non-utility DIFs in 2014. Wastewater is reflects 20 fixture units per EDU and fee per EDU of$6,180. (4) Prescott Valley has a public safety fee with fires services provided by a fire improvement district. Non-Residential "B" DIF Comparison (1) Prescott Prescott Prescott Prescott Current Initial Updated Prescott Chino Fee Category 2012 Max. (2) 2019 2019 Valley Valley(3) Water $9,000 $13,610 $8,574 $8,574 $3,757 $6,870 Water Resources 8,258 2,473 2,406 2,406 3,846 0 Wastewater 5,600 11,861 5,235 5,235 7,596 30,900 Street 0 0 63,000 6,800 14,100 0 Park& Rec 0 0 2,700 0 600 0 Police (4) 0 0 7,800 7,800 4,400 0 Fire (4) 0 0 2,900 2,900 0 0 Library/Cultural 0 0 0 0 0 0 Total $22,858 $27,944 $92,615 $33,715 $34,299 $37,770 (1) Assumes 10,000 sq.ft.retail developed building with 1-inch water meter and 100 fixture units. (2) Current maximum reflects new development within Water Service Area E and Wastewater Service Area G. The current minimum occurs within Water Service Area B and Wastewater Service Area I. a, (3) Chino Valley eliminated non-utility DIFs in 2014.Wastewater is reflects 20 fixture units per EDU and fee .;:' per EDU of$6,180. (4) Prescott Valley has a public safety fee with fires services provided by a fire improvement district. Utility and Non-Utility DIF Study Schedule Study Milestone Timeline Publish Draft LUA and HP (utility and non-utilities) November 13, 2018 LUA and IIP Public Hearing January 22, 2019 Adopt Final LUA and IIPs February 26, 2019 Provide Notice of Intent and set DIF Public Hearing February 26, 2019 Publish Draft DIF Study Reports February 26, 2019 DIF Public Hearing April 9, 2019 Vote on proposed DIFs May 14, 2019 Modified DIFs Effective August 1, 2019 • I 3.0 CITYoF PRESCOTT gip,y‘1ft6/Nctorea. COUNCIL AGENDA MEMO MEETING DATE/TYPE: STUDY SESSION MEETING 1-22-19 DEPARTMENT: Public Works AGENDA ITEM: Presentation by Public Works on 2018 Capital Projects. I Approved By: Michael Lamar, City Manager Item Summary Public Works will present a summary of Capital Improvement Projects completed in 2018. Recommended Action: For Presentation only. No action will be taken. I Packet Pg.6 I 1/22/2019 J cITYrw PRES('O1"C ('ITYo.•11t I'a('U'1"r Public Works Department Public Works Department • 2018 Capital Projects Summary - Craig Dotseth City Council Presentation Public Works Director January 22, 2019 Tim Sherwood • - Construction Services Manager v 2018 CIP Overview c(rYovPREs1'o1 r 2018 OP Overview ('1rYi Pl E5(;Or�1: Projects Completed in 2018 Projects Completed in 2018 0 Completed 29 Capital Improvement Projects in 2018 •Alarcon Street Drainage Improvements •Bashford Court Alley Reconstruction 0 Total awarded amount of projects completed was lust over$38 million. •Chino 5 MG Tank •Chino Production Well#5 Rehabilitation(Design/Build) 0 Total expenditures on completed protects was about$2.8 million less than •Dameron Drive and Home Street Improvements the contracts awarded at about$35.1 million. •Drainage Improvement Projects—Bid Packet#1(Alarcon,Goldenrod,Divinity) vz' •Hassayampa Village Lane Intersection Improvements In:" 0 Completed 4 Job Order Contracting(1OC)Projects totaling nearly$500k a''" •Mingus-Douglas Lift Station Abandonments ,A •North Tank East Rehabilitation i • • 18 design projects were awarded in 2018 of which 6 were completed and •North Washington/Churchill Reconstruction 0 ' started construction within the year. . •Rodeo Grounds Driveway Improvements(1OC) •Rosser Street Reconstruction U •Samaritan Way Improvements(10C) •Small Water Mains Phase 3—Dexter Neighborhood • •State Route 89 Widening and Roundabout Z •Sundog Trunk Main Phase A 11 - • •Sundog Wastewater Treatment Plant Lift Station 1 1/22/2019 2018 CIP Overview (•,-I,,,,.])j1 ES!^tyj•.j: Roadway Reconstruction Projects CITYm • Projects Completed in 2018 O 2018 Expenditures-$11,750,000 •Virginia Street Pavement Improvements(1OC) •Washington School Driveway(1OC) L.. • SR89 Wideninglijk ... •Willis and Cortez Intersection Repairs • Bashford Court Alley •West Yavapai Guidance Clinic Drainage Improvements(CDBG) • Willis and Cortez Intersection •Zone 12 Interconnect Pump Station - - •Zone 56/76 Pump Station Upgrade 1 CJ.. ,� �,_- •FY18 Pavement Preservation(Various Locations) iio. I,1- - •FY18 Pavement Rehabilitation(Willow Creek-Willow Lake to Mitchell) •FY18 Sidewalk Reconstruction(Various Locations) •FY18 Sidewalk Repairs(Various Locations) is • ". A`' . . - •FY19 Pavement Preservation(Rejuvenator-Various Locations) _ -- - •FY19 Pavement Rehabilitation(Willow Creek-Mitchell to Green Ln and Gail Gardner-Iron Springs to Willow Creek) _ -- - .. Roadway Reconstruction Projects I rrn„ Roadway Reconstruction Projects CITY,,, • Samaritan Way • Rosser Street • Hassayampa Village Lane �•, • North Washington/Churchill t -.. .-"6\ zs - i.. - Jr� _ — _• - e .- 3.. 2 1/22/2019 Roadway Reconstruction Projects c•rrvot•PRES P Roadway Reconstruction Projects (•rrYoFI)IZ ES( j' • Dameron Street • Home Street • f - 1. vl o _ . . . . ', If • ___ U .. ,_,K_,_ Roadway Reconstruction Projects c•rr\o PRES(' )TP Roadway Reconstruction Projects c7TYo PR ES!O7;P • Bashford Alley • SR89 Widening and Roundabout • Willis&Cortez Intersection • IiiiIr ,_ • v N uiiiill OW iarlhrfi It '' v_ 3 1/22/2019 Drainage Improvement Projects t•rrV PRH c'1' Drainage Improvement Projects rr\nr PRES "l; ii r-;q •4 • Drainage Bid Packet#1—Goldenrod Spillway ❑2018 Expenditures-$940,000 Apt I ifir. 0; ,. • Drainage Bid Packet#1 _ - • West Yavapai Guidance Clinic ` • Rosser Street Detention . - , ,/ il Alarcon Street Drain•L,. is imi I- a. tY •. �7 `► ;4 r A. • I .,, ... • =I NM yyi Drainage Improvement Projects t'trYn PRES(;OI;T Drainage Improvement Projects (rrvu PR M('(YII; • West Yavapal Guidance Clinic • Rosser Street Detention I - rlki • ..-_ CG �,:/ — ,d. •. �?.,hr, -a i j , . = fir E; x 11 4 1/22/2019 Water Production Projects (Try,.I wi s,(}Iw Water Production Capital Projects envoi,1'1214;ti(.()j';l, ❑2018 Expenditures-$8,400,000 • Chino 5MG Tank • Zone 56/76 Pump Station M Aii _ 3 • Zone 12 Interconnect Pump Station . • Chino Production Well 45 .—. •_ .� • `1I R : ram ', ry. x Water Distribution Capital Projects rNTYn,PRES(Mj,lz Wastewater Projects (•rr).wPI2Eti l' ❑2018 Expenditures-53,500,000 ❑2018 Expenditures-$4,900,000 • Small Water Mains Phase 3 • Sundog Trunk Main Phase A • • Sundog Lift Station - • Mingus/Douglas Lift Station Abandonments 4:' _ li...,.L.. .. : ,,,t„ 5 1/22/2019 r ' _ Preservation,Rehabilitation and Maintenance Projects ... Wastewater Projects (rrv��.P1:1(Y!i' ctmvn.•PRESS, )'i r • Sundog Lift Station , 02018 Expenditures-$6,23S,000 ,.," •r ''.� ilamot- e,:-: �� • Pavement Preservation Program :• 3 • Pavement Rehabilitation Program - B.i^ I� 1" } w4 a' ' •.� Sidewalk Improvement Program t ( i � 5Y? .. •.. _� Preservation,Rehabilitation and Maintenance ✓' `� Preservation,Rehabilitation and Maintenance �' � t ITvor PRES(' r CITYo PRES!.Rrl:t. Projects •��•• Capital Projects • Gail Gardner Pavement . ' • Willow Creek Road Pavement Rehabilitation Rehabilitation • Sarafina Sidewalk Replacement 1 • Virginia Street Pavement -s ;,.. - ti.,`,;,-„•,.. 4, Rehabiltation •• z a .` 0 .Q a. �. - i • ... 6 1/22/2019 Public Works Department crryt,t PRESinn:Tt' Thank you to the amazing staff in Public Works ❑ Capital Project Managers • George Henderson • Jeff Low • David Bradley • • John Kuebnch -_ ❑ Pavement and Sidewalk Program Manager • Steve Gulzzo ❑ Inspections • Jerry Greenfield-Inspections Supervisor Doug DeBusk • • Jason Bringhurst >✓ • Jason Ferguson 0 • Brian Moore New • Brandon Kinsey matv • Martin Magdaleno U Randy finch .❑ Contract Specialists • Candace Manibusan • Erika Laster 7