Item Coversheet
CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION
 
Agenda Item: 10C. 


Date Prepared:  2/21/2017 Council Meeting Date: 3/7/2017

TO:Carl Swenson, City Manager 
THROUGH:
Julie Arendall, Deputy City Manager 
FROM:  Katie Gregory, Management and Budget Director 
SUBJECT:
Adoption of Notice of Intention to Consider Adjusting Water, Wastewater, Reclaimed and Non-Potable Water Rates and Establish the Public Hearing Date 

Purpose:

This is a request for the City Council to consider possible action to adopt a Notice of Intention to adjust the City’s water, wastewater and reclaimed water rates and establish May 16, 2017 as the date for a public hearing on the proposed adjustments.  The City must comply with Arizona statute, which establishes a notification process when a municipality considers adjusting water and wastewater rates.

Background/Summary:

City staff is recommending that water, wastewater, reclaimed and non-potable water rates for FY2018 and FY2019 be adjusted, effective July 1, 2017.  Water and Wastewater rate adjustments must be formally adopted in a public hearing 30 days prior to their effective date.  Staff is recommending that the Public Hearing be held at the May 16, 2017 Council Meeting.  Through recent changes in statute, the City must adopt a Notice of Intention to adjust rates at least 60 days prior to the public hearing date and notice the public on the date of the public hearing.

 

Adopting the Notice of Intention will satisfy the initial requirements of ARS §9-511.01 for notifying the public of the City’s intention to consider water, wastewater, reclaimed and non-potable water rate adjustments at a future public hearing.  Following the adoption of the Notice of Intention, the City is required to publish the Notice in local newspapers at least 20 days in advance of the public hearing.  City staff plan to publish this notice on both April 14th and April 21st to comply with this requirement.

Previous Actions:

There have been no previous actions.

Options:

A:  The Council can approve the Notice of Intention item, which will continue the process of considering the adoption of water, wastewater, reclaimed and non-potable water rates.  Council will discuss water, wastewater, reclaimed and non-potable water rates at the March 30, 2017 Budget Study Session.  If the Notice of Intention is approved, the public hearing planned for May 16, 2017 will continue, at which time the Council will formally vote to adopt (or not adopt) the recommended rates and make them effective July 1, 2017.

 

B:  The Council may elect to not approve the Notice of Intention item, which will delay and/or stop the adoption of water and wastewater rates planned to be effective on July 1, 2017.  A public hearing would need to be rescheduled to a later date, delaying the effective date.

 

Staff Recommendation:

Discussion and possible action to: (a) adopt the Notice of Intention to adjust the City's water, wastewater, and reclaimed water rates; and (b) establish May 16, 2017 as the date for the public hearing to consider adoption of the recommended rates.

Fiscal Analysis:

There is no fiscal impact to the adoption of this item.

Contact Name and Number:  

Staff have updated the Utility Rate forecasts to incorporate new cost and consumption assumptions as well as updated infrastructure requirements.  Staff anticipate receiving further guidance from the Council at the March 30, 2017 Budget Study Session.  Following this direction, staff will bring rate adjustments for formal consideration and adoption at the May 16, 2017 Public Hearing.  As part of the rate adoption process, the City must properly notice the public on the City’s intent to consider rate adjustments and the date on which they will be considered.  Adoption of this Notice of Intent will maintain the City’s compliance with these requirements.