2020 public works bond exploratory subcommittee minutes · 2020. 12. 18. · matt dunbar dana...

2020 Public Works Bond Exploratory Subcommittee Minutes

September 16, 2020

October 14, 2020

October 28, 2020

November 4, 2020

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CITIZEN BOND EXPLORATORY COMMITTEE Public Works Subcommittee

MEETING MINUTES Wednesday, September 16, 2020

MINUTES OF THE CITIZEN BOND EXPLORATORY COMMITTEE Public Works Subcommittee OF THE CITY OF CHANDLER, ARIZONA, held in the 5th Floor Large Conference Room at Chandler City Hall, 175 South Arizona Avenue, Chandler, Arizona, on September 16, 2020.

THE MEETING WAS CALLED TO ORDER BY RON HARDIN AT 4:01 P.M.

The following members answered roll call:

Also in attendance:

DISCUSSION ITEMS

Ron Hardin Ernie Serrano Erik Morgan Christine Ellis DougToy-k Kevin Biesty*

John Knudson Ryan Peters Dawn Lang Matt Dunbar Dana Delong Kelly Schwab Jason Crampton Steve Turner Alexis Apodaca Andrew Goh* Craig Younger* Liz Denning* Teresa Canjar Lydia Ortiz Holly Granillo

a. Open Meeting Law Training

Subcommittee Chairman Subcommittee Member Subcommittee Member Subcommittee Member Subcommittee Member Subcommittee Member

Public Works & Utilities Director Governmental Relations & Policy Manager Management Services Director Budget Manager City Clerk City Attorney Senior Transportation Planner Assistant to the City Manager Governmental Relations Coordinator Capital Projects Manager Public Information Officer Public Works Financial Services Supervisor Management Assistant Management Assistant Management Assistant

City Clerk Dana Delong and City Attorney Kelly Schwab presented information regarding Open Meeting Law. Ms. Delong explained that as a public body, it is the view of the State of Arizona that meetings must be done in public so members of the public can attend and participate in the meeting. Ms. Delong provided an overview of what is a public meeting, when a meeting can be held, what

CITIZEN BOND EXPLORATORY COMMITTEE Public Works S..Wcommittee

MEETING MINUTES Wednesday, September 16, 2020 Page 2 of 4

items can be discussed, and when a citizen can address the public body. She also explained the pitfalls of an open meeting and what happens if we violate the Open Meeting Law.

Ms. Delong explained how to know if there is a Conflict of Interest and reviewed the different Conflict of Interest Law Violations. She also explained the types of public records and who has to comply with Public Record Laws.

b. Overview of Previous Bond Election and Current Capital Improvement Program (CIP)

Management Services Director Dawn Lang presented information regarding Chandler's current Capital Improvement Program (CIP), the remaining bond authorization and property tax rate, and the statutory debt capacity and total outstanding debt.

Ms. Lang presented an overview of the continued focus of Chandler's aging infrastructure and the breakdown of the current 10-year CIP funding. The majority of the CIP program funding is for Public Works and Utilities projects.

Ms. Lang explained General Voter Bond Authorization and how it authorizes the City to sell bonds for various projects. Bond Authorization generally cannot shift between categories. The bond authorization is not new debt nor raises the tax rate, it authorizes the City to sell bonds for projects in those categories.

Ms. Lang explained the Bond Financing Tools, such as Pay as You Go, ETROS or Revenue Bonds, and GOs are used to fund Water and Wastewater projects. She also explained how bond authorization impacts the Property Tax.

Subcommittee Member Ernie Serrano asked how to determine how much bond money to request when asking for new bond authorization. Ms. Lang responded that the subcommittee will look at all projects, what authorization the City already has, how much will fund the projects by priorities, how far will the funding go and how much more funding is needed.

Mr. Serrano asked if the City is still collecting Hotel/Motel tax. Ms. Lang responded that City does collect the tax through the transaction privilege tax and revenues go into the general fund for general operations.

Ms. Lang gave an overview of the City's AAA Bond Ratings. Chandler is one of 40 communities across the nation with AAA bond ratings from all three rating agencies. This results in low-cost of borrowing, thereby able to complete large projects through borrowing. It also relates to lower taxes and utility rates.

c. Overview of Public Works and Utilities Department/Master Plans/Capital Projects

Public Works & Utilities Director John Knudson gave an overview of the adopted strategic plan approved by Council In 2019. The strategic plan has five tenets Council felt are important and Public Works & Utilities and Transportation policies fit in all categories.

CHANDLER CITY COUNCIL REGULAR MEETING MINUTES Wednesday, September 16, 2020 Page 3 of 4

Mr. Knudson explained how transit, roadway, active transportation, and ADA improvements enhance Chandler's multi-modal transportation network giving Mobility ability for citizens and businesses. It is important to have good roadways; active transportation, transit and reliable utility infrastructure serve as a catalyst for infill and fedevelopment. Well-maintained public infrastructure promotes neighborhood aesthetics, safety and community vitality. Reliable utilities and a convenient, multi-modal transportation network enhance quality of life for Chandler residents. New transit technologies can increase efficiencies while providing a more convenient service such as autonomous vehicles. Forward thinking in the use of technology optimizes Utility operations, aids in regulatory compliance and reduces cost.

Mr. Knudson explained that Public Works and Utilities is the largest department in the City and gave a brief summary of the different divisions within Public Works and Utilities.

Mr. Knudson reviewed the Utilities Master Plan which is updated every five years. The last master plan update was blended with the general master plan to help determine water supply and demand. The City has a Water Allocation Policy to manage water resources. A new company seeking to build in Chandler must seek council approval. Council will determine whether to grant the water resource or have the company find their own water resource and pay for it. ·

Mr. Knudson introduced Governmental Relations & Policy Manager Ryan Peters to give an overview of the Transportation Policy. Mr. Peters reviewed the Government Relations and the different agencies involved, long range planning for Transportation, Transportation Programming and how they allocate the resources regionally, Transit Services and the various contracts, and the Active Transportation planning for bike and pedestrian facility projects.

Mr. Peters gave an overview of the Transportation Master Plan. The recommendation of the master. plan was to continue buildout of city's arterial network and enhance transit and bike and pedestrian access. The Modes of Travel Survey results show the preferred method of travel is by personal vehicle, but there is an interest for more bike and transit services. The survey also shows what areas to invest in for future, how to make services more cost efficient and encourage more riders.

There are several elements to transportation management. The Roadway Element - identify areas where roads may need improved capacity to support additional traffic. Also noted, was the idea that some areas of the city are more appropriate for pedestrian traffic so roadway investments in these areas should be considered carefully.

Bicycle/Pedestrian Element - complete the bicycle and pedestrian network, where to fill in the gaps, have safer, more user friendly bike and pedestrian facilities, separate bike lanes, and widen lanes for recreation use and commuting to and from work.

Transit Element - more attractive to casual and choice riders who don't have to rely on transit system, but opt to use for convenience. Provide service in certain areas and connect to transit system.

Leveraging Technology Element - opportunity to explore how technology influences transit and to invest for the future and attract employers for future growth. ·

CITIZEN BOND EXPLORATORY COMMITTEE Public Works Subcommittee MEETING MINUTES Wednesday, September 16, 2020 Page 4 of 4

Mr. Peters then turned the presentation back to Mr. Knudson to give an overview of Building a Capital Project.

Mr. Knudson explained how assessments- need to be identified for the project. The project design phase takes 1-2 years. Property or Right of Way acquisition is done during the design phase.

Funding a Utilities project uses cash funding from Enterprise Operations fund~ General Obligation Bond Funding, Excise Tax Bonds; or Impact Fees.

Funding a Transportation Project uses Regional Funds, Federal Funds, Bond Funding, Impact Fees or Local General Fund.

Mr. Knudson wrapped up the presentations with offering tours of the current and future projects to the subcommittee members.

CALENDAR Mr. Hardin asked to establish a calendar for future meetings. Mr. Peters suggested twice a month meetings and additional meetings as needed. Subcommittee Member Christine Ellis stated that committee members previously agreed on having the meetings on Wednesdays. Mr. Harding stated future meetings will be held twice a month on Wednesdays, beginning September 30, 2020 from 4:00 -6:00 p.ni. The Location is to be determined. The meeting on September 30 may be a tour and an email communication will be sent.

MEMBERS COMMENTS/ANNOUNCEMENTS Mr. Serrano asked how much was the, last,bond. Ms. Lang answered the last bond election was in 2007 and it was about $450,000,000.

Mr. Hardin asked about wearing masks in a group meeting. Mr. Peters replied that the City has an ordinance requiring the wearing of masks. He also mentioned that future meetings will be held in larger conference rooms.

ADJOURNMENT The meeting was adjourned by Ron Hardin at 5:46 p.m.

,~_;~ ~rtiz Recording Secretary

*Participants attended virtually via WebEx

Meeting Minutes of the CITIZEN BOND EXPLORATORY COMMITTEE

Public Works Subcommittee Wastewater Collections Conference Room

975 East Armstrong Way, Building J, Chandler, Arizona Wednesday, October 14, 2020

1. Call to Order The meeting was called to order by Subcommittee Chair Ron Hardin at 4:05 p.m. The following members answered roll call: Ron Hardin, Subcommittee Chair Doug Toy, Subcommittee Member Ernie Serrano, Subcommittee Member

Erik Morgan, Subcommittee Member Kevin Biesty, Subcommittee Member

Peng Zhang, Subcommittee Member * Members Absent: Christine Ellis, Subcommittee Member Staff Present: John Knudson, Public Works & Utilities Director Craig Younger, Public Information Officer Andrew Goh, Capital Projects Manager Gina Ishida-Raybourn, Utilities Engineering Manager Gregg Capps, Utility Environmental Services Manager Ryan Peters, Governmental Relations & Policy Manager Steve Turner, Assistant to the City Manager * Alexis Apodaca, Governmental Relations Coordinator Liza Hom, Management Assistant Lydia Ortiz, Management Assistant Holly Granillo, Management Assistant Guests: Jay Tibshraeny

2. Approval of Minutes Motion made by Subcommittee Member Serrano to approve the September 16, 2020 meeting minutes of the Citizen Bond Exploratory Committee Public Works Subcommittee. Motion seconded by Subcommittee Member Biesty. Approval: The motion passed 6-0. 3. Briefing Items

a. Public Outreach Involvement

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CITIZEN BOND EXPLORATORY COMMITTEE - Public Works Subcommittee Meeting Minutes Wednesday, October 14, 2020 Page 2 of 8

Craig Younger, Public Information Officer, gave an overview of the Communications and Public Affairs Department’s (CAPA) communications efforts to support the bond committees and the bond election. CAPA would like to know if there is a need for greater public input at this phase. CAPA used several public involvement options that can be used to collect public feedback. One is reviewing information and input gathered through the City’s recent surveys, projects, and plans. There are surveys that are conducted annually with the Annual Budget Survey as an example, where feedback is gathered on the items such as City’s spending priorities, master plans, and projects. The City also conducts scientific surveys, with most available online. CAPA wants to ensure that the Subcommittee has access to survey/public feedback that the City has already received from various sources.

Mr. Younger pointed out that there is a webpage dedicated to the Bond Election on the City of Chandler website – chandleraz.gov/bondelection. The webpage has information such as why the City is holding bond elections, how the process works, and information on the different Bond Subcommittees. The individual subcommittee webpages contain the agenda, presentations, results, and meeting minutes of previous meetings. At the bottom on these pages is a link for the public to share their thoughts and ideas, and comments will be reviewed and considered as part of the process to provide a recommendation to the City Council. This information will be shared with the Committees.

Information about the bond elections will be shared on the City website, through social media, and through local print media. Some of the communications will not ramp up until after the current election, around November 9, to avoid confusion among the public.

Mr. Younger asked the committee if there is need for any other form of additional public feedback. Subcommittee Chair Hardin commented that the committee will reach out with questions. Subcommittee Member Biesty asked when the committee will receive the public feedback that is collected through the surveys. Mr. Younger said they are not sure yet if they will be shared immediately as they come in, weekly, or at the committee meetings. Subcommittee Chair Hardin stated that they would like to know when the feedback will be shared and who will be responding to the public. Mr. Younger stated that currently the communication with the public has been fairly minimal. Communication efforts will be ramped up in November after the current elections. b. Utilities Projects Presentation John Knudson, Public Works & Utilities Director, stated he would like to relay what the City of Chandler Utility does and how the City does it better than any other City in the valley. Chandler is able to build a world class utility system and deliver services at the lowest cost in the valley. The City continues to deliver value as well as optimize services and facilities. The projects discussed today represent $420 million of capital projects that the City is investing in over the next seven years. The Utility section has the largest project budget in the City. Mr. Knudson will include an overview of utility project financing, the Fiscal Year 2022-2025 Capital Improvement Program (CIP) for Water, the Fiscal Year 2022-2025 CIP for Wastewater, and two possible new projects.

https://www.chandleraz.gov/bondelection


The Utility has the ability to bond using the excised tax bond. The excised tax bond allows the City to bond for projects without voter authorization. This is because the City has a rate base/income that is put up for collateral against those loans. With voter approval, the City will be able to use the General Obligation (GO) Bond for Utility projects. The GO Bond may be financed at a lower rate. The Utility would seek voter approval to use the GO Bond to finance upcoming projects at a lower rate. The use of the GO Bond is not related to any tax increases as every Utility project is already within the rate model. The rate model is run every year. Every year, the department develops an annual budget with capital projects included. All the projects are in the rate model, and the rate model dictates when the projects can begin, how much can be spent by year, and how that will affect the rates each subsequent year. The current rate structure is projected out five years and presented to City Council. A cost of service study is also conducted approximately every three to five years which examines the finances and operations and how to equitably spread the rates charged amongst our different classes of water users (residential vs. non-residential). Utility projects are also cash-funded from enterprise operation funds and impact fees. Impact fees are charged to new users for water, wastewater, and solid waste services. Mr. Knudson highlighted three large CIP projects for water. The Utility performs a great deal of maintenance and rehabilitation of existing infrastructure. Project No. 6WA023 is Main and Valve Replacements. This project has $38.6 million budgeted over the next three years. This capital project includes replacements of aging water mains. Currently, there is over 1,200 miles of water mains in the City. The program also includes exercising the over 35,000 water main valves in the City and replacing as necessary. Mr. Knudson introduced Gina Ishida-Raybourn, Utilities Engineering Manager, Gregg Capps, Utility Environmental Services Manager, and Andy Goh, Capital Projects Manager to the Committee. Project No. 6WA034 is Well Construction and Rehabilitation. This project has $10 million budgeted over the next three years. This program involves the 32 potable water wells in the City. The City’s wells have a 70-million gallons per day (MGD) capacity. The annual daily average of water usage is approximately 60 MGD. The City has the ability of only operating the wells to provide water to the City on an average day. This is without use of the Pecos Surface Water Treatment Plant and the Santan Vista Water Treatment Plant (SVWTP). To maintain this redundancy, the Utility needs to maintain the existing wells or replace aging wells. As wells age, they are replaced because of loss of production (produces sand, collapses, becomes unusable). A new well is included every other year in the program, with the cost of a new well, land included, of approximately $3 million. Project No. 6WA110 is Water Systems Upgrades w/Streets Projects. This project has $2.6 million budgeted over the next three years. This program includes projects that will coincide with larger Streets projects. During larger planned Streets projects, if there are utilities (old water lines, sewer lines, piping, etc.) that need to be replaced in the same areas as the Streets projects, this program will cover those replacement costs.


Mr. Knudson spoke about the 101/202 Highway Interchange Water Transmission Line Rehabilitation/Replacement Project. In February 2016, there was a water main break in the 101/202 Highway Interchange. Arizona Department of Transportation (ADOT) had initially installed the water main. After the main break, the City investigated the break and discovered the water line will need to be replaced. Working with ADOT and the State legislature, the new line will be partially funded for replacement by them. This new water line feeds into west Chandler. The project is for the assessment and rehabilitation of the water and sewer pipe crossing the intersection. The project cost is $6.075 million. Subcommittee Member Serrano asked if there are water tanks for each of the water wells, or is it piped to one area. Mr. Knudson said that the City’s concept was one tank and one well for every square mile before the City had a water plant. Currently, we operate 19 booster station tank facilities and 32 wells. Each booster station can be filled from the well or can be filled from the distribution system. Another group of wells are direct injection from the ground to the pumps. These wells add to the redundancy as they are not drawing water from tanks but from the aquifers, creating extra boost capacity and extra storage. The Utility is also working on the Pecos 48” Water Transmission Line Rehabilitation. This is an assessment and rehabilitation of the 4.5-mile water transmission pipe that runs from the Pecos Surface Water Treatment Plant to Price Road. This was completed the late 1980s. This concrete cylinder pipe is aging and needs to be assessed. The project cost for this conditions assessment is $5.585 million. Subcommittee Member Biesty asked if this price is just for the assessment. Mr. Knudson stated that this cost includes some rehabilitation work such as patching, not for full replacement of the transmission pipe. Project No. 6WA334 is for the Joint Water Treatment Plant. The SVWTP is co-owned with the Town of Gilbert. The City receives 24 MGD of water from SVWTP and pays for 50% of the plant operation costs. This is a capital fund for operation costs of the joint facility. Project cost is $3 million over three years. Project No. 6WA210 is for the Water Treatment Plant Improvements. This program involves various improvements to the infrastructure at Pecos Surface Water Treatment Plant. Construction and rehabilitation of the sand filters is a large part of the improvements. These filters are the last filtration before the water enters the tanks for distribution system. The plant is rated at 60 MGD capacity, but it cannot be run continuously at 60 MGD. Currently, the plant can be run at 60 MGD for a 1 – 2-week sprint with twelve filters, but to maintain 60 MGD continuously, more filters are needed for build-out. In 2001, the Environmental Protection Agency adopted a new standard for arsenic in drinking water of 10 parts per billion (ppb), replacing the old standard of 50 ppb. The City spent $20 million to build large arsenic treatment facilities at 8 well sites to become compliant with the standard. Currently, the City is watching for disinfection by-products. As water is sent out into the distribution system, the water is chlorinated, and the water ages as it travels to a tank and then


chlorinated again before it is used. During that timeframe, a chemical reaction can take place between the chlorine and carbon-based organics in the water. When this happens, a by-product is created called Triahalomethane. The EPA has been monitoring the Total Triahalomethane (TTHM) levels. The Utility is considering options to build a system at the water plant to remove the carbon from the water received from the SRP canal, before running it through the rest of the plant process. Project cost is $61.638 million. Project No. 6WA230 is for the Water Production Facility Improvements. This project is to rehabilitate the Brooks Crossing and Hunt Highway Booster Tank Sites. This includes well pumps, reservoir, and site improvements. Project cost is $5.656 million over three years. Project No. 6WA640 is for Well Remediation – Arsenic Systems. This is a program primarily for changing the filter media in the arsenic systems. Well water travels through the media, and a chemical exchange occurs where arsenic “sticks” to the media. That filter media needs to be replaced over time. Project cost is $6 million over three years. Project No. 6WA673 is for Water Meter Replacements. This is for the replacement of failed and under-performing potable and reclaimed water meters. The City has 86,000 water customers and a 15-year meter replacement program. $3 million is budgeted every other year for water meter replacement. Project cost is $9.5 million over the next 7 years. Project No. 6WA677 is Advanced Metering Infrastructure (AMI). This project is to implement an automated meter information system for all residential, commercial, and industrial customers. AMI would provide near real-time water usage data. The water meter would transmit data to a system for utility billing and also to an application that can be used by customers to see their water usage or if they have possible water leaks. Committee Chair Hardin asked if this is a separate type of meter that needs to be installed. Mr. Knudson stated that 90% of correct meters are already installed for AMI. Project cost is $3 million. Committee Chair Hardin asked if the Utility is at testing stage of AMI. Mr. Knudson said the City is not at that stage yet. Currently, the compatible meters are in the ground and a software upgrade that the City is getting happens to be AMI-compatible, so the Utility is looking at the cross-benefit of installing the collector antennas to remotely receive water meter data. Mr. Knudson presented information wastewater projects. Project No. 6WW189 is Effluent Reuse – Storage and Recovery Wells. In Chandler, every drop of water used inside our home is used twice. The two wastewater plants treat the wastewater to grade A+ reclaimed water. The City delivers reclaimed water used to fill lakes and irrigate golf courses, parks, neighborhood common areas, roadside landscaping, and crops. When demands are low, the reclaimed water is stored in aquifer storage and recovery (ASR) wells. Ten are located under Tumbleweed Park, and ten are located at the Ocotillo Water Reclamation Facility. The water is recharged through the ASR wells, and the City receives long-term storage credits. The project cost is $14M over three years for operation and maintenance costs.


Project No. 6WW196 is Collection System Facility Improvements. The City has eight wastewater pumping stations called lift stations. The lift station takes the wastewater from the sewer system and lifts it to a higher elevation and continues to moves it through the system. A lift station is an extremely corrosive environment. This program is to consistently and constantly rehabilitate the wastewater collection facilities. Project cost is $5.3 million over three years. Project No. 6WW266 is the Sewer Assessment and Rehabilitation. This program is for the rest of the sewer system including 900 miles of wastewater sewer piping and 19,000 manholes throughout the City. Project cost is $62.2 million over three years. Mr. Knudson gave an overview of the 66” Sewer Rehabilitation Project. This project is to rehabilitate 2.5-mile sewage transmission pipe that runs underneath the 101/202 highway interchange, along Price Road south to the Ocotillo Water Reclamation Facility. This sewer pipe was constructed in the late 1980s. A new liner would need to be installed in the sewer pipe, and “pump-arounds” would need to be installed during the construction of each section. Project cost is $41.891 million. Mr. Knudson provided an overview of the Interceptor/Siphon Rehab/Replacement Study. During the rehabilitation of the water lines under the 101/202 highway interchange, the Utility would like to do an assessment of the sewer system assessment of the condition of the existing facilities and create a plan for some redundancy as there is only one sewer line that runs to west and north Chandler. Project No. 6WW332 is the Wastewater System Upgrades with Streets projects. This project has $910,000 budgeted over the next three years. This program includes projects that will coincide with larger Streets projects. During larger planned Streets projects, if there are any sewer facilities that need to be replaced in the same areas as the Streets projects, this program will cover those costs. Project No. 6WW621 is the Water Reclamation Facility Improvements. The City has three wastewater plants: Airport Water Reclamation Facility (AWRF), Ocotillo Water Reclamation Facility (OWRF), and the Lone Butte Wastewater Treatment Plant (LBWTP). LBWTP is a small lagoon-style wastewater facility that is leased from the Gila River Indian Community for 30 years. Project costs are $97.8 million over three years. Project No. 6WW681 is the Ocotillo Brine Reduction Facility (OBRF) Facility Improvements. OBRF is exclusively dedicated to Intel. The facility uses reverse osmosis filters to treat 2.8 – 3 MGD of wastewater that comes from Intel. The wastewater that comes from Intel has already been treated through their treatment system, and it is treated again at OBRF and sent back to Intel for reuse. Operation and maintenance is paid for by Intel. All costs are reimbursed by Intel. $3.5 million is budgeted for improvements over the next three years. The OWRF Improvements Project is for improvement and upgrades to the biological treatment, grit removal, disinfection, and automation systems. The original facility was built in


the mid-1980s and had a capacity of 10 MGD. The new side of the facility was constructed four years ago and has newer technology, utilizing a membrane system. The older plant is aging and needs rehabilitation. Project cost is $39.656 million. The AWRF Improvements Project is for improvement and upgrades to the biological treatment, headworks screening, site electrical, and automation and control systems. The facility was built in the early 1990s and master planned for a capacity of 30 MGD. Wastewater can be pumped from the OBRF to AWRF for treatment. Project cost is $60.767 million. The AWRF Supervisory Control and Data Acquisition (SCADA) Project involves hardware and software upgrades to the AWRF SCADA system. The SCADA system controls the water and wastewater facilities. The upgrades would not be a centralized system, but a distributed control system. If one system fails, the other would still operate. The AWRF SCADA system would be upgraded to match the OWRF SCADA system. Project cost is $367,000. Committee Chair Hardin asked if the cost is just for software and hardware acquisition. Mr. Knudson stated that the cost is for software and hardware only, not software integration. Mr. Knudson presented two possible new projects. The Water Distribution System Optimization Projects would involve optimization improvements for the Chandler potable water system. The City receives 24 MGD of water from the SVWTP, and it is either put into the distribution system for use or sent to storage tanks. The SVWTP receives water from the Colorado River and has lower carbon (THM) levels. The SVWTP also uses ozone for water disinfection. This project would include installation of transmission main and pressure reducing valves at various locations to transmit water directly from the SVWTP in the Town of Gilbert into the City’s water distribution system to lower the water age and total THM levels in the water. Project cost is $20+ million. The other possible project is the AWRF/Salt River Project Canal Interconnect Project. This project would be for an alternative source to meet the growing demand for reclaimed water. This project would install treatment capacity at AWRF to treat Salt River Project/Central Arizona Project canal water to grade A+ reclaimed water standards for direct use and local replenishment of the ASR wells. Project cost is $16.8 million. Subcommittee Member Serrano asked if the projects that were presented represent the $420 million CIP for Utilities. Mr. Knudson stated that it represents seven years of CIP projects. Mr. Serrano asked how old the Pecos water transmission line is, and what the lifespan is. Mr. Knudson stated that it was built in the late 1980s and hopefully has a lifespan of 50-years. A bulk of Chandler’s pipe was installed in 1980s. Subcommittee Member Serrano asked there is a lot of the old piping in the older Chandler neighborhoods and alleys. Mr. Knudson said there are still older pipes. The issues with those water lines is that there may be a sewer line right next to it as well as other utilities right, such as gas, electrical, or cable. The water service line may be moved to the front, but the water meter could be located in the property’s backyard so the City would need to re-plumb through

CITIZEN BOND EXPLORATORY COMMITTEE - Public Works Subcommittee Meeting Minutes

Wednesday, October 14, 2020 Page 8 of 8

the property to the backyard. Mr. Knudson states that are not many alley water service lines

left in the City.

Subcommittee Chair Hardin wanted a clarification if the projects presented were a

combination of those that are underway and those that need further funding through the

bond election process, Mr. Knudson stated that is a combination of both, Mr, Knudson stated

that for the Utility side, the Department determines through facility assessments which

projects need to be completed and submits costs and projects to the Budget Division, and they

are entered into the rate model, The rate model prioritizes the projects and indicates how

much can be spent per year. For the Utility side, the decision is getting voter authorization to

use the GO Bonds to fund the Utility projects. The Utility is not competing with other

departments for General Funds. The Utility (Water/Wastewater/Solid Waste) is funded through

an Enterprise Fund.

c. Establish Meeting Calendar

Mr, Knudson presented the meeting dates for the Citizen Bond Exploratory Committee Public

Works Subcommittee. At the October 28th meeting, Transportation projects will be discussed

as well as a tour of the Traffic Management Center. Jason Crampton will discuss the Transit

projects at the November 4th meeting. A summary, project prioritizations, and

recommendations will be presented at the November 18th and December 2nd meetings. If that

can be completed at the first meeting, then the December 2nd meeting can be cancelled. All

Committee members agreed to the meeting dates.

4. Member Comments/Announcements

Subcommittee Member Serrano asked whether there will be a tour of the Pecos Surface Water

Treatment Plant. Mr. Knudson answered that either a group or individual tour for

subcommittee members will be scheduled for next week.

5. Calendar

The next meeting will be Wednesday, October 28, 2020, at 4:00 p.m.

6. Adjournment

A motion was made by Subcommittee Member Biesty to adjourn the meeting. Motion

seconded by Subcommittee Member Morgan. The meeting was adjourned at 5:48 p.m.

Approval Date of Minutes: October 28, 2020

*Participants attended virtually via Webex.

Liza Hom, Recording Secretary

L.': CHANDLER '41\•arizona


MEETING MINUTES Wednesday, October 28, 2020

MINUTES OF THE CITIZEN BOND EXPLORATORY COMMITTEE Public Works Subcommittee OF THE CITY OF CHANDLER, ARIZONA, held in the South Atrium Conference Room at Transportation & Development Building, 215 East Buffalo Street, Chandler, Arizona, on October 28, 2020.

1. Call to Order The meeting was called to order by Subcommittee Chair Ron Hardin at 4:30 p.m.

The following members answered roll call: Ron Hardin, Subcommittee Chairman Ernie Serrano, Subcommittee Member Doug Toy, Subcommittee Member Erik Morgan, Subcommittee Member Kevin Biesty, Subcommittee Member Christine Ellis, Subcommittee Member

Members Absent: Peng Zhang, Subcommittee Member

Also in attendance: John Knudson, Public Works & Utilities Director Ryan Peters, Governmental Relations & Policy Manager Jason Crampton, Senior Transportation Planner Alexis Apodaca, Governmental Relations Coordinator Andrew Goh, Capital Projects Manager Craig Younger, Public Information Officer Lydia Ortiz, Management Assistant Holly Hunter, Management Assistant

2. Approval of Minutes Motion made by Subcommittee Member Serrano to approve the October 14, 2020 meeting minutes of the Citizen Bond Exploratory Committee Public Works Subcommittee. Motion seconded by Subcommittee Member Ellis. Approval: The motion passed 6-0.

3. Briefing Items John Knudson, Public Works & Utilities Director, asked the committee if there were any questions from the tour of the Traffic Management Center (TMC). Subcommittee Member Serrano asked what happens when there's a power failure. Mr. Knudson explained the traffic signal no longer operates but goes to red flashing light and there is a battery backup to maintain the red flash. Subcommittee Chair Hardin asked if the traffic management system becomes a customer of fiber optic when the Information


MEETING MINUTES


Technology team takes over or will they maintain an independent system. Mr. Knudson explained the fiber optic system runs throughout the city and within the conduit are campus networks. The TMC is considered a campus network, a separate network from the city network running in the same conduits. The goal is to tie all distributive facilities out in the field could be tied into a separate network running in same conduits. The governance model has not been approved yet and is currently in process in the fiber optic masterplan, ongoing for the last year and a half.

4. Action Agenda - None

PRESENTATION Ryan Peters, Governmental Relations & Policy Manager, gave a review of how Streets and Transportation projects are financed and the guiding document, the Transportation Master Plan. There are a variety of revenue sources from Regional, Federal and local funds. Highway User Revenue Fund (HURF) is diminishing every year since the gas tax has not increased since 1991. City and state benefit from this resource, approximately $15-17 million comes directly to the city and the resource has to be spent on transportation purposes. Proposition 400 is major funding resource. This is a regional ½ cent sales tax approved in 2004 and the collection began in 2006 and is set to expire in 2025. Prop 400 has funded regional projects such as Loop 101, light rail, arterials, and Loop 202. Federal funding is less flexible with funds. The city receives resources from federal government grants. Local resources rely on bond funding and impact fees as well as general fund. Projects on the horizon are evaluated and based on resources available and whether it's regional, local, or federal funds. There are lots of resources and constantly receiving notices from Maricopa Association of Governments (MAG) for a call for projects. Staff looks at every opportunity to take advantage of resources. Subcommittee Member Serrano asked if resources would be for commercial areas. Mr. Peters answered federal funding must be spent on public projects. A recent example is in paving public alleys and dust mitigation.

Impact fees - Arizona has been built on the principle of growth paying for itself. The city charges new developments for their impact on the system. Infrastructure projects are important and there are not enough resources from federal or local funding to support all the new growth without sacrifice other programs to provide local general fund support to help support growth projects.

Bond funds - the last bond election was in 2008. Because of the success from receiving grants, we could stretch the bond allocation received. There are still a couple years of bond capacity left and we continue to compete at regional level to ensure that we can build projects as they are needed.

Chair Hardin asked about the life expectancy of the HURF fund and will Chandler's allocation change? Mr. Peters responded the funding is forever but the allocation may diminish over time since it is based primarily on fuel consumption. As cars become more efficient and more people choosing not to drive, the resource goes down unless the gas tax increases. Subcommittee Member Biesty stated the Vehicle license tax is also included in HURF. He also stated the gas tax has not been raised by state or federal for long time.

Mr. Peters explained the Prop 400 funding ½ cent sales tax for transportation. The fund is statutorily confined to be spent for freeways, transit, and arterial streets. This program was negotiated in 2003-2004 timeframe. The local leaders prioritized how best to spend resources and ask voters to authorize½

CHANDLER CITY COUNCIL REGULAR MEETING MINUTES Wednesday, October 28, 2020 Page 3 of 6

cent sales tax. Prop 400 serves as an extension of the previous sales tax from the 1980's and is set to expire. Now the region is looking at authorizing a new sales tax. There are new needs for transit, freeway, and arterial systems and some legacy projects that weren't completed. The policy debate is to convey the importance to Chandler voters of the various needs, like legacy arterial projects, freeway expansions, transit and active transportation to support a complete system. We have until the 2024 election to get something on the ballot before voters. However, the legislature and the Governor have a big influence over the ability to get a package on the ballot. Infrastructure is what drives the quality of life as well economic development. Transportation infrastructure fits right with that and is important to the City of Chandler's foundation.

The Transportation Master Plan was approved by city council earlier this year. The master plan vision has a variety of elements: Roadway, Active Transportation, Transit, and a new component, Leveraging Technology. Our recent experience with Waymo and with ridesharing demonstrated that technology is out there and constantly evolving. Is there a way we can leverage the technology to enhance the system. The consultant was asked to see what technology looks like. Technology is important to our city and part of our brand. What can be done to solve some of these challenges?

We surveyed the public on their current primary mode of travel, what mode of travel should the city invest in, and look at the future of what primary mode of travel in the next 20 years. We are trying to address the current mode of travel as well as maintain the level of capacity in foreseeable future

2018 Level of Service - It is the City Council's policy to maintain a level of service of "E" or better as it relates to traffic flow. We focus our efforts on roads that are failing (in red on the map) or approaching fail (in yellow on the map). It is also a policy decision to tolerate a failing roadway. For example, we could widen the road to help traffic flow, but it doesn't help with the policy of making it a pedestrian oriented area if the economic development goal of that area is to encourage a walkable mix of uses.

2040 Level of Service - The map shows some road constraints primarily north of Loop 202 and looking at improvements on several major roadways. There are some roadway investments on the to-do list and other roadways that need discussion about the return on investment. Also discuss if there are any city council objectives that conflict with having a roadway that simply moves traffic quickly and whether there may be a pedestrian element or other policy conflicts. The masterplan recommendation is to have 4-lane and 6-lane roads throughout the city.

John Knudson, Public Works & Utilities Director gave a high level review of the Streets and Transportation Capital Improvements Program (CIP) for the next seven years, which is the timeframe for this bond issue. The Streets and Transportation projects represented currently in the CIP is $240 million. There are some projects that don't have a funding source because the bonding authority runs out within the seven year timeframe and will be discussed further in the presentation. There are approximately 20 programs for Streets and Transportation.

Capital Improvements Programs:

• Street Repaving is the largest single program fonp:ed at about $12 million a year. This program includes sealcoat, slurry, mill/overly, and full rebuilds. When there is a mill/overlay or rebuild, the city will also do American Disability Act (ADA) improvements along the area on both sides. The rebuild, mill, or overlay will last about 20 - 30 years and we don't want to go back and tear up the


MEETING MINUTES


roadway for ADA corrections. About $3 million is spent for concrete work and ADA improvements to bring older parts of town up to ADA standards.

• Landscape Repairs program is for revegetation or rehabilitation of city owned Right of Ways, medians, and retention areas.

• City Gateways Program is to install gateway signs at all arterial boundaries. The older gateway signs will be refreshed.

• Streetlight Additions and Repairs program is to purchase new streetlight and traffic signal poles, replace old poles or replace poles from accident knockdowns. There is a company that does assessments on the metal thickness of the poles; Installing a new traffic signal cost approximately $500,000. Studies are done and warrants are analyzed to be sure the new traffic signal meets all standards before the traffic signal is approved. Subcommittee Member Serrano asked why there's no turn arrow at Boston Street. Mr. Knudson answered that the question can be answered by Dana Alvidrez, City Transportation Engineer.

• Wall Repairs and Maintenance program is for maintenance of city owned walls along alleys bound by arterial. Old walls are replaced, north part of Chandler.

• Street Construction - Various Improvements program funds unexpected projects. It also allows city to take in unexpected grant funds and able to spend the grant funds in the same year.

• Miscellaneous Storm Drain Improvements program for miscellaneous projects and for the repair of concrete and retention areas.

• Stormwater Management Master Plan. The master plan is reviewed every five years. Then next master plan will be funded next year 2021.

• Detroit Basin Storm Drain Improvement. This storm drain serves as neighborhood retention. Many pipelines that serve from Downtown Chandler into this basin need repair. There are approximately 5,000 feet of 36"-48" diameter piping that needs replacing.

• Streets Vactor Truck program for the replacement of the truck that cleans out sewers. • Bucket Trucks program to replace one truck per year. There are ten bucket trucks used to service

street lights and traffic signals. • Streets Gannon Tractor Trailer program to replace the old truck. • Street Sweeper program - the sweepers are replaced using grant funding (CMAC, congestion

mitigation air pollution). There is a fleet of 10 sweepers that run a 24/7 operation of arterial streets at night and residential streets during day.

• LED Street Light Upgrade/Conversion - program began last year for a citywide LED streetlight conversion and discussion with council about the return of investment by saving energy. We were able to get Salt River Project (SRP) to redo the rate structure to take advantage of savings with lower wattage. The city pays per streetlight; electricity is not metered like residential service. All neighboring cities had SRP create a rate structure to charge by number of lights and by wattage. Reinvesting energy savings every year will take about eight years to complete the conversion.

• Signal Detection Cameras program funds conversion of cameras to the heat sensing and pedestrian sensing cameras.

• TMC Equipment & Filter Replacement program is for the care and maintenance of the TMC facility and the purchase of new server and displays.

Subcommittee Member Serrano asked if the city changes lights in subdivisions. Mr. Knudson responded if the light is on a public street than it's a public street light. If it's on a private street, the subdivision is responsible for street lights and also the paving and sidewalks. To identify public or private streets, look

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CHANDLER CITY COUNCIL REGULAR MEETING MINUTES Wednesday, October 28, 2020

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at the brown street signs. If the sign has yellow tab ends,,, it's a private street in a private neighborhood. If there are no yellow tab ends, it's a public street.

Mr. Knudson continued with the next group of road projects, the first two projects are "in flight" meaning they are in design.

• Chandler Heights Road (Gilbert Road to Val Vista Drive) project is in design phase with construction to begin in fiscal year 20/21.

• Lindsay Road (Ocotillo Road to Hunt Highway) project is soon to be in ROW acquisition and construction to begin in years 22/23 and 23/24.

• Alma School Road (Germann Road to Queen Creek Road) does not show bond impact grants. Until last year all Alma School Road projects were in 10th year of CIP. With the new Banner Hospital moving in, it heightened awareness of the congestion. All Alma School Road projects were moved forward in the CIP, and were able to begin Germann Road to Pecos Road widening. There is a developer that will be responsible from Loop 202 north to Pecos Road widening. The next project, Germann Road to Queen Creek Road would like to begin soon; it was not included in the Arterial Life Cycle Program (ALCP) and doesn't have confirmed grant funding.

Mr. Knudson continued with the next section of Clean-l)p Projects.

• Hamilton Street (Appleby Drive to Carob Drive) Collector project - there is a large Chandler Unified School District facility for buses off Ocotillo Road which presented traffic difficulties. The solution is to make an exit to Appleby Road, Appleby to Arizona Avenue, and also an exit to Queen Creek Road to a new streetlight.

• Frye Road (Canal Drive to Consolidated Canal) Collector project - from McQueen Road east runs to a canal with no room to turn around. The solution is to build a cul-de-sac.

• Washington Street Improvements project- this is the southern part of downtown, south of Frye Road to extend out to Pecos Road.

• El Monte Street@ Cherri Lynn Collector - unfinished roadway • Armstrong Way (McQueen Road to Hamilton Street) Collector - North of city yard, Armstrong Way

west stops, all - only exits to McQueen Road. Extension West to Hamilton Street, Hamilton Street to Willis Road exiting to Arizona Avenue. There is a dairy that will be leaving and developers looking are looking at the property and the city needs to be looking at collector roadway in the future.

• Willis Road (Vine Street 1700 Ft East) on the west side of town, the road is incomplete and heavily traveled; the plan is to widen the road and be more accessible.

The next projects are traffic count related. The projects have no funding sources; these were recommended from the master plan.

• Ray Road/Dobson Road Intersection Improvements by the year 2040 the traffic will be difficult at this intersection. For these projects, the design starts in year 7, construction starts in years 8-10. We believe we have adequate bonding authority to year 5-6. These projects have bond authority to begin, but not to finish the work.


MEETING MINUTES


• Kyrene Road Improvements (Chandler Boulevard to San Tan 202) - the congestion issue most visible is the off ramp. Kyrene Road intersections north of the freeway don't have capacity to move traffic. The City started the assessment to evaluate the corridor and then COVID hit, so trying to do traffic counts now, there's no traffic. Also, Intel announced expansion of the Chandler Boulevard campus. There's a lot of traffic that comes from Intel employees. Like to have option for bond authority for this project.

Proposed New Project Cooper Road Collector Improvements - this project will enhance economic development at the airport by building out the farm land property at the southern part of the airport. If Public Works, along with the Airport group and Economic Development group each get bond authority, then a project like this can move forward.

Streets/Transportation Proposed Recommendations - proposing projects that are unfunded or brand new projects are based on priority, time, and importance. The Alma School Road project has other high level visions from citizens. Subcommittee Member Serrano asked if the hospital is opening next month. Mr. Knudson answered yes, the hospital will be open soon and if on schedule, there will be three lanes of traffic in each direction. There are also two mega churches in that area. The summations of the need for projects we believe are important to the city, but we don't believe we will have bond funding in our current bond package. This approximate amount could be used as a guide for the Streets and Transportation portion.

5. Member Comments/Announcements The Subcommittee members thanked staff for their presentations.

6. Calendar November 4, 4:00 p.m. at City Hall, 2nd floor large training room

7. Information Items - None

8. Adjournment The meeting was adjourned by Ron Hardin at 6:04 p.m.

retary

1. Call to Order

~CHANDLER .,j{..;ar1zona

Meeting Minutes of the CITIZEN BOND EXPLORATORY COMMITTEE

Public Works & Utilities Subcommittee Chandler City Hall, Training Rooms A & B 175 S. Arizona Avenue, Chandler, Arizona

Wednesday, November 4, 2020

The meeting was called to order by Subcommittee Chair Ron Hardin at 4:09 p.m.

The following members answered roll call: Ron Hardin, Subcommittee Chair Doug Toy, Subcommittee Member Ernie Serrano, Subcommittee Member Kevin Biesty, Subcommittee Member* Peng Zhang, Subcommittee Member Christine Ellis, Subcommittee Member*

Absent Erik Morgan, Subcommittee Member

Staff Present: John Knudson, Public Works & Utilities Director Andrew Goh, Capital Projects Manager Ryan Peters, Governmental Relations & Policy Manager Jason Crampton, Transportation Planning Supervisor* Nancy Jackson, Transit Services Coordinator* Craig Younger, Public Information Officer Steven Turner, Assistant to the City Manager Alexis Apodaca, Governmental Relations Coordinator Holly Hunter, Management Assistant Lydia Ortiz, Management Assistant

2. Briefing Items a. Transit Presentation and Discussion Jason Crampton, Transportation Planning Supervisor gave a presentation (attached) showcasing an overview of Transit Services in Chandler. He also highlighted the City of Chandler's Transportation Master Plan, as well as various Transit Projects.

b. Active Transportation Presentation and Discussion Jason Crampton, Transportation Planning Supervisor provided a presentation (attached) to the committee, highlighting active transportation in Chandler, the city's Transportation Master Plan, bicycle/pedestrian elements, active transportation toolbox and future transportation

CITIZEN BOND EXPLORATORY-Public Works Subcommittee Meeting Minutes

Wednesday, November 4, 2020 Page 2 of 3

projects. In response to questions from committee members, Mr. Crampton noted the following:

• Fry Road Protected Bike Lane Project - The project would construct physical separation for bike lanes on Frye Road; and extend from Paseo Trail to ½ mile west of Arizona Avenue. He explained economic benefits to the downtown area resulting from bike riders visiting the downtown area.

• Projects that require funding: o Ashley/Paseo Trail Connection - The project would extend the Ashley Trail 400'

East to connect to Paseo Trail (including Cooper Road Crossing); Project Cost $0.454 million.

o Highline Canal Shared Use Path - The project would construct 1 O' Shared Use Path along Canal Bank; and extend Chandler Border with Tempe (1 /4 mile east of 1-10, ½ mile north of Ray Road) to Orchid Lane (1 /4 mile north of Ray Road); Project Cost $1.03 million.

o Kyrene Branch Canal Shared Use Path - The project would construct 1 O' Shared Use Path along Canal Bank; and extend Chandler Border with Tempe (Kyrene Road, ½ mile north of Ray Road) to Linda Lane (1 /4 mile south of Ray Road); Project Cost $1.916 million.

o Price Road Shared Use Path - The project would add 3.7-mile bike lane, separated from roadway - Loop 202 to Ocotillo Road, on Price and Dobson roads; Project Cost $8.121 million.

o Ocotillo Road Shared Use Path - The project would construct 6.6-mile bike lane, separated from roadway - Ocotillo Road Corridor, from Dobson Road to 148th

Street; Project Cost $13.901 million. o Americans with Disabilities Act (ADA) Improvements - The project would make

improvements to parks and facilities to ensure compliance with the ADA law, as recommended by the City of Chandler's ADA Transition Plan; Project Cost: $4,000,000 for 7 years of improvements.

Chair Hardin asked staff to prioritize the projects that were reviewed with the committee.

Public Works and Utilities Director, John Knudson and Governmental Relations & Policy Manager, Ryan Peters agreed with Chair Hardin. They will be able to provide prioritization recommendations to the committee at their next meeting. Mr. Knudson noted it was important for the committee to consider current-term funding and long-term funding as it related to the projects.

3. Action Agenda None.

4. Member Comments/Announcements The Subcommittee members thanked staff for their presentations.

CITIZEN BOND EXPLORATORY-Public Works Subcommittee Meeting Minutes

Wednesday, November 4, 2020

5. Calendar The next meeting was announced for Wednesday, November 18, 2020, at 4:00 p.m.

6. Adjournment

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A motion was made by Subcommittee Member Serrano, seconded by Subcommittee Member Toy to adjourn the meeting at 5:07 p.m. The motion passed unanimously (6-0).

Holly Hunter, Recording Secretary

*Participants attended virtually via Webex.

2020 public works bond exploratory subcommittee minutes · 2020. 12. 18. · matt dunbar dana...

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