2 2 2021 minutes WS DRAFT

D R A F T
WORK SESSION OF THE COMMON COUNCIL
OF THE CITY OF EL MIRAGE
EL MIRAGE CITY COUNCIL CHAMBERS
10000 N. EL MIRAGE ROAD
5:00 PM -TUESDAY, FEBRUARY 2, 2021
Minutes
 
           
   
1.
ROLL CALL
Present: Mayor Alexis Hermosillo; Vice Mayor Monica Dorcey; Councilmember Roy Delgado;
Councilmember Anita Norton; Councilmember Mike Hutchinson; Councilmember David
Shapera; Councilmember Donna Winston 
2.
CALL TO ORDER - The meeting was held online and publicly with limited access; called to
order at 5:00 pm.
 
3.
WORK SESSION PRESENTATION
 
1.
Presentation of results of Utility Rate Study performed.  (Finance)
Finance Director Robert Nilles stated the City had conducted an analysis on the City of El
Mirage's sanitation, wastewater, water, and water recharge rates.  Mr. Nilles acknowledged Public
Works Director Nick Russo, Ms. Christy Eusebio, and Financial Consultant Mr. Kevin Burnett
with Willdan Financial Consultants, Inc., who would be presenting, with a request for council
feedback at the presentation's conclusion.
Mr. Burnett started the presentation by stating the City of Surprise had requested an analysis of
the recharge fee they pay annually to the City of El Mirage for "lost" water.  He explained the
purpose of the recharge fee was because the City of El Mirage provides water to a number of
Surprise residents but is unable to use that water to pay for what is drawn down because it flows
into the City of Surprise sewer system and becomes "lost" water for the purposes of paying the
recharge fee required by the State.  The City of El Mirage charges the City of Surprise a fee for
that lost water and Surprise requested an analysis of the fees currently being charged.  Mr. Burnett
explained the City's billing data is used to calculate the amount of water going to water-only
customers in Surprise and how much water is "lost" for the purpose of recharge.  He further added
if the City were to purchase water on the open market, the City would be charged credits on an
Acre Foot (AF) basis. The most recent published Central Arizona Replenishment District
(CAGRD) rates per acre foot were $608 per AF for fiscal year 2015-2016 and $739 per AF (a
22% increase) for fiscal year 2021-2022; he reviewed projected recharge rates for the next five
fiscal years.
Councilmember Norton stated the City had previously purchased water credits elsewhere and
asked if Willdan Consultants purchased water credits other than from CAGRD.  Mr. Burnett
stated not in this case because they stayed with CAGRD to maintain the same methodology and
approach as in the past for analysis comparison.  Mr. Nilles added CAGRD is the one entity who
publishes their rates and is currently the only comparison the City can do directly to a location.  
Councilmember Delgado stated the City had purchased Central Arizona Project (CAP) water in

the past and was this an option.  Mr. Nilles explained the CAP water was part of the City's shared
water supply and is part of the basic water system currently in place; it is factored into the current
water rates.  Mr. Nilles added this piece of the presentation only pertained to the cost analysis for
"lost" water and recharge rates.
Public Works Director Nick Russo presented by reviewing the December 2020 City of El Mirage
hosted recycle E-Town Hall.  The E-Town Hall provided a review of the current recycle program
and review of general options while gathering public input online.  Following the event a
questions and answers document was published for future reference.  The Community has an
understanding of recycling costs based on market conditions and possible fee increases were
neutrally received.
Councilmember Delgado asked if the recycle program was to be discontinued would rate
increases be smaller.  Mr. Russo responded the presentations were to provide an overview for
Council to deliberate on the best practices moving forward for the recycle program and provide
direction. 
Finance consultant Christy Eusebio presented a review of the water, sewer, and sanitation rates
and stated utility rate models are updated and analyzed annually during the budget process to
determine if any adjustments are needed.  The City provides an analysis based on the next five to
ten years and any rate adjustment recommendations are brought before Council for
consideration.  Ms. Eusebio reviewed the current El Mirage rates based on the assumptions from
all the cities for comparison to 7,000 gallons of water and 7,000 gallons of sewer per month.  Ms.
Eusebio identified current City rates and stated rate increases for water and sanitation had not
occurred since fiscal year 2013-2014 and the last sewer increase was in fiscal year 2012-2013. 
She reviewed a current rate comparison with several Westside cities for combined water, sewer,
and sanitation.  Ms. Eusebio continued by showing chart breakdowns of Westside cities for water,
sewer, sanitation with and without recycling; no rate increases for water or sewer are
recommended at this time.  Ms. Eusebio reviewed sanitation with recycling currently in place
with no rate changes; the City would hit a negative fund balance in 2023.  She further stated if the
City chose to keep the same sanitation rate but discontinue the recycling, the negative fund
balance would begin to reflect in 2025.  The current sanitation rate is $13.23 and staff is
recommending an increase to $15.21 per month for sanitation only.  This rate increase would
increase the City's total without changing the City's rate position when compared to other
Westside cities.  Ms. Eusebio further stated if the City included recycling, the rate would increase
by $5.29 a month.  From the analysis, three options were recommended: 1) discontinue recycling
and keep the sewer rate at $13.23 per month; 2) discontinue recycling and increase the sanitation
rate to $15.21 per month; or 3) keep recycling and increase the rate to $18.52 per month.
Councilmember Shapera asked if the City had a plan for replacing older pipes and were the
quoted rates inclusive of those potential costs.  Mr. Russo responded part of the rate study
included a ten-year Capital Improvement Project (CIP): Public Works added a rotating
replacement schedule which included a three-year rotating replacement for sewer and a five-year
replacement for water.  Councilmember Dorcey asked Mr. Russo if the sewer plant was also
included in the CIP.  Mr. Russo confirmed that funds were identified in the CIP for a possible
expansion to the sewer plant based on residential use and development.  Councilmember
Delgado asked if CDBG funds were included to offset the funds.  Mr. Russo responded
CDBG/grant funding is not guaranteed funds, but they can supplement the CIP when awarded.  
Councilmember Hutchinson asked if the quoted study numbers would be adjusted during the
ten-year calculation through 2031, and how was Parks & Sons factored into those numbers.  Ms.
Eusebio responded costs and revenues include an inflation factor, i.e. labor's percentage can
increase; Parks & Sons averages a 2% to 3% annual increase. Councilmember Shapera asked
what the estimated life expectancy was for water pipes in the downtown area.  Mr. Russo stated an
engineer's life for concrete pipes in the downtown area was estimated to be thirty to fifty years
depending on present condition.  Some newer areas have PVC piping and the life expectancy is
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Work Session  - Council Minutes
February 2, 2021

between twenty and forty years.  Councilmember Shapera recommended the City increase the
sanitation rate and discontinue recycling.  Councilmember Dorcey and Mayor
Hermosillo stated they believed the recycling program needed to remain in place, residents utilize
the program and the cost is a modest investment for the City's future.  Mayor Hermosillo asked if
any new recycling requirements or updates had been provided to the City.  Mr. Russo stated other
than a few additional restrictions, there were no changes since last discussed.  
Councilmember Winston asked if the City has improved on its contamination rates.  Mr. Russo
stated the contamination rate is between 35-55% and remains the same.  Councilmember Norton 
asked where Parks & Sons transported the recyclables.  Mr. Russo responded recyclables were
transported to third party vendors who sorted the materials.  Councilmember Hutchinson asked
how much of the blue recyclable container materials were actually being recycled as opposed to
heading to a landfill.  Mr. Russo responded the City's contamination rate is between 33-55%, so
that means between 45-67% is being recycled. He also added that due to the reduced recyclable
limitations China and other countries have imposed, several vendors have stepped up to better
manage the recycling of these materials.  Councilmember Norton and Mayor Hermosillo
agreed that education is key for the public to understand the need to recyle properly.  
Councilmember Shapera stated he would like to know how much of the recycled materials were
still being placed in landfills, as nationwide many cities have discontinued recycling because
there was no market. Mr. Russo responded he would reach out to the vendor to obtain additional
data.  Mayor Hermosillo recommended continuation of the recycling program and the positive
impact it has for the City's future.  Councilmember Hutchinson agreed with Mayor Hermosillo
but added he needed more data in order to determine best practices.  Councilmember Dorcey
explained the reason some cities such as Surprise discontinued the practice of recycling was due
to the market collapse and she believes the market will come back stronger over the next five
years.  Mayor Hermosillo summarized council comments and asked if the decision to discontinue
or continue with recycling, should be tabled for the next council meeting.  Council agreed that a
decision should be made after Mr. Russo can obtain and report on the recycling data.  
Mr. Nilles summarized the next steps for implementation and adoption of the new fee rates and
stated if additional data existed then the City can work to provide.  Mr. Nilles further added the
decision on rate adoption (whether to continue recycling or not) would be an agenda item at the
February, 18, 2021 council meeting.  Councilmembers discussed the need for data that shows the
percentage of uncontaminated recycled materials that Parks & Sons transports to the recycling
contractor. 
 
4.
ADJOURNMENT - The meeting was adjourned at 6:04 pm.
 
_____________________________
Alexis A. Hermosillo, Mayor
ATTEST:
______________________________
Sharon Antes, City Clerk
I hereby certify the aforementioned minutes are a true and accurate record of the El Mirage City Council Work
Session held on Tuesday, February 2, 2021 and a quorum was present. 
  
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Work Session  - Council Minutes
February 2, 2021