Attachment A - June 20, 2024 TIP Minutes
City of Phoenix — Transportation, Infrastructure, and Planning Subcommittee (2024-10-16)
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Phoenix City Council Transportation, Infrastructure, and Planning Subcommittee Summary Minutes Wednesday, Jun. 20, 2023 City Council Chambers 200 W. Jefferson St. Phoenix, Ariz. Subcommittee Members Present Subcommittee Members Absent Vice Mayor Debra Stark, Chair (Phone)* Councilwoman Kesha Hodge Washington Councilwoman Ann O’Brien Councilwoman Laura Pastor (Virtual) CALL TO ORDER Councilwoman Hodge Washington called the Transportation, Infrastructure, and Planning Subcommittee to order at 10:05 a.m. with Chairwoman Stark, Councilwoman Ann O’Brien, and Councilwoman Laura Pastor present. CALL TO THE PUBLIC None. MINUTES OF MEETINGS 1. Minutes of the Transportation, Infrastructure and Planning Subcommittee Meeting Councilwoman O’Brien made a motion to approve the minutes of the May 15, 2024, Transportation, Infrastructure, and Planning meeting. Councilwoman Pastor seconded the motion which passed unanimously, 4-0. CONSENT ACTION (ITEMS 2-4) Items 2-4 were for consent action. No presentations were planned, but staff was available to answer questions. Councilwoman O’Brien made a motion to approve items 2 and 4. Councilwoman Pastor seconded the motion which passed unanimously, 4-0. 2. Terminal 4 Lobby New Concept Selection – New Concession Lease No councilmember requested additional information. 4. Retroactive Approval to Apply for an Arizona State Historic Preservation Office Certified Local Government Pass- Through Grant for Federal Fiscal Year 2024 – Federal Funding No councilmember requested additional information. Attachment A 3. Historic Preservation Demonstration Project Grant – First National Bank Building – 1506 (aka 1516 and 1520) E. McDowell Road No councilmember requested additional information. Councilwoman Hodge Washington opened the floor to public comment. Eric Nielsen supported the motion, highlighting the importance of preserving historic buildings like the old laundromat in District 7, and proposed maintaining part of the structure as a façade to integrate with new construction. Councilwoman O’Brien made a motion to approve item 3. Councilwoman Pastor seconded the motion which passed unanimously, 4-0. INFORMATION AND DISCUSSION (ITEMS 5-6) 5. Public Works Solid Waste Financial Plan Update Public Works Director Felipe Moreno introduced Deputy Public Works Director Brandie Barrett and presented an update on the Public Works Department Solid Waste utility financial plans for Fiscal Years 2024-2029. *Chairwoman Debra Stark arrived at Council Chambers at approximately 10:15 a.m. Chairwoman Stark asked for an example of a regulatory change that might affect costs. Mr. Moreno provided an example, explaining that the permitting fee paid to Arizona Department of Environmental Quality (ADQ) for commercial customers is set to increase from 25 cents per ton to 58 cents per ton next year, representing a 132 percent increase. This regulatory change is beyond their control but must be complied with. Chairwoman Stark thanked Mr. Moreno, noting that having an example is always helpful. Deputy Public Works Director Brandie Barrett continued with the presentation. Chairwoman Stark thanked Councilwoman Hodge Washington for filling in due to her dentist appointment, expressed appreciation for the presentation, and acknowledged Councilwoman O'Brien's suggestion to discuss the topic publicly. She emphasized the importance of understanding future challenges and noted the value of similar discussions for both Water and Public Works. She then opened the floor for questions. Councilwoman Ann O’Brien thanked the presenters for the detailed information about future plans and the budget. She clarified that the annual minimum operating reserve balance of $25 million is not cumulative and asked for confirmation on this point. Mr. Moreno confirmed that the $25 million minimum operating reserve balance is a carryover and does not compound. It is set aside each year to maintain a good bond rating and ensure structural soundness as a rainy-day fund, but it does not grow annually. Councilwoman O’Brien asked if vehicle purchases, and capital projects have been deferred for the last two years or longer. Mr. Moreno confirmed that over the last two years, they have scaled back on vehicle purchases and deferred non-critical capital projects to save money. The focus at the landfills is on developing cells to ensure sufficient airspace for garbage, which has led to the deferral of other projects to prioritize this essential task. Councilwoman O’Brien thanked Mr. Moreno for the information and expressed her appreciation to the chairwoman for allowing the presentation. Councilwoman Hodge Washington thanked the Vice Mayor and asked for clarification on the net effect of not being able to meet the obligations of the major unfunded Capital Improvement projects mentioned on slide nine. She requested further explanation to ensure a full understanding of the potential impact. Mr. Moreno explained that if the unfunded Capital Improvement projects are not addressed, it could result in a lack of space to bury garbage at the landfill, unsafe facilities for employees and the public at transfer stations, and an inability to handle waste on the post-collection side. He emphasized that while the public sees the daily waste collection trucks, there is a significant backend operation that ensures safety, responsibility, and long-term waste management capacity for Phoenix. Councilwoman Hodge Washington asked for clarification, noting that the projections in the solid waste financial plan, as shown on slides seven and eight, include anticipated growth for Phoenix but still predict a deficit. She sought confirmation on this point. Mr. Moreno confirmed that the projections do account for potential growth and necessary requirements in the forecast to ensure appropriate space at the landfill, but they still anticipate a deficit. Councilwoman Hodge Washington noted that the projections include anticipated increases in revenues but still show a deficit or shortfall, seeking confirmation on this. Mr. Moreno confirmed. Chairwoman Stark thanked everyone for the presentation and acknowledged the arrival of the interpreter. She then asked Carmen Cota to introduce herself. Interpreter Carmen Cota arrived late and introduced herself. 6. New City Code Chapter 5D – Network Infrastructure Services – Fiber to the Home Deputy City Manager Mario Paniagua introduced Deputy City Manager Alan Stephenson, Street Transportation Director Joseph Brown, and Special Projects Administrator Kevin Sonoda. Chairwoman Stark thanked staff and asked about GigaPower's concerns regarding license fees and payment restoration, referencing trenching issues observed in Mesa. She inquired if discussions had been held with GigaPower about these problems. Mr. Sonoda stated that the installation in Mesa started in October 2022. Ongoing discussions with Mesa and Chandler have addressed issues and concerns with the microtrenching process. Chairwoman Stark asked if conversations with other cities showed that the procedure had become more costly and if they were changing their processes. Mr. Sonoda stated that the cities in the Southeast Valley have approved microtrenching, which was a condition for licensing with Google. He also mentioned that GigaPower favored this position, allowing them to use microtrenching for installation. All cities in the East Valley have adopted microtrenching from these companies. Councilwoman Hodge Washington asked if the other East Valley cities have similar restoration requirements in their code. Mr. Sonoda stated that the City’s pavement restoration code is the gold standard for the state. He mentioned that other cities have restoration requirements, but they are not up to the levels that Phoenix requires. Councilwoman Hodge Washington stated microtrenching runs parallel with the street, but every two to three hundred feet, a horizontal cross-street cut is needed. She asked if this means there would be an indentation or mark in the streets every two to three hundred feet. Mr. Sonoda confirmed that every two to three hundred feet, the fiber optic cable must be trenched across the street to serve customers on the other side of the residential area. Councilwoman Hodge Washington asked if there is any data or field research about the repair needs or proper methods for repairing microtrenches. She expressed concern about the potential impact on the integrity of the City's streets, given the significant investments made to ensure safe and aesthetically pleasing streets. She inquired if there is data showing that microtrenching will not undermine or reduce the lifespan of streets that are being repaved. Mr. Sonoda acknowledged that it is a concern around the country and that microtrenching has been allowed in very limited areas due to these concerns. He explained that if multiple competing firms conduct microtrenching, it could result in several transverse cuts across the roadway, potentially every 3 feet. This could lead to issues with water intrusion, bicycle safety, and pavement damage, which would be greater than those associated with current procedures. Councilwoman Hodge Washington mentioned that other cities, such as Las Vegas, have GigaPower, and Google Fiber in larger cities like Miami. She asked if there is any information on whether these cities allow microtrenching without assurances of indemnification for damage or how they are asked to restore the streets to ensure their continued durability. Mr. Brown stated that they requested records from Las Vegas but have not received them yet, though they suspect microtrenching was approved. He mentioned a nationwide push for microtrenching, but it is allowed on a limited basis. Research earlier in the year found limited examples of peer cities with microtrenching programs, with the best information coming from the Valley. Chairwoman Stark asked if the pictures of the microtrenching are available to show the public for better understanding. Mr. Stephenson asked if the PowerPoint with the microtrenching slides could be pulled up and requested Joe to explain the slides for the public. Chairwoman Stark noted that it's easier to understand the issues, especially for people on bicycles, when the public can see the images. Mr. Sonoda explained that the PowerPoint shows two photographs. The one on the left displays a truck setup with a large vacuum on the trailer and a blue hose connected to a saw. The saw has a 2-inch-wide blade that cuts a trench approximately 10 inches deep into the roadbed while the vacuum removes the rock and dirt. The next slide shows a closer photo of the cut and the crossing to the other side of the street for fiber installation on both sides. Councilwoman Hodge Washington asked for confirmation that the images on the screen show the microtrenching process but do not depict the restoration or the anticipated method for restoration. Mr. Sonoda confirmed that the images show the microtrenching process and explained that the restoration method used in Mesa and other East Valley cities involves mastic material, which is like a crack seal. This material is placed in the top inch and a half to two inches of the trench to seal it. Councilwoman Hodge Washington asked how the mastic seal compares to the slurry seal asphalt treatment required under the City Code at Section 31-49. Mr. Sonoda explained that the slurry seal is a liquid sealant with some aggregate that provides protection over the entire asphalt roadway. The mastic or crack seal is used to fill gaps or voids in the street before applying the slurry seal. In some instances, the mastic or crack seal remains in the roadway for 6 to 12 months before micro surfacing or slurry is applied to allow for curing. When the slurry seal is applied, it bonds correctly to the asphalt and the crack seal. Councilwoman Hodge Washington presumed that the slurry seal asphalt treatment is more durable and less penetrable by water and other types of intrusion compared to the mastic seal currently used in Mesa. Mr. Sonoda confirmed that the slurry seal is a protective layer of sealant placed on the asphalt to improve its lifespan. It supplements any type of crack seal that is applied on the asphalt beforehand. Councilwoman Hodge Washington thanked Mr. Sonoda for the clarification and the Chair for the opportunity to speak. Mr. Stephenson added that since the City does not currently allow microtrenching, the industry would have to use a traditional trench, which is laid deeper in the pavement, or bore across the roadway. He compared the mastic used in Mesa to the City's top seal requirement, noting that one seals over the top while the other involves different methods for installing the cable. Councilwoman Hodge Washington thanked Mr. Stephenson for the additional information. Councilwoman O'Brien thanked Chairwoman Stark and stated that she wanted to back up a step to better understand why they must cut every two to three hundred feet across the road. Mr. Sonoda explained that cutting every two to three hundred feet is necessary to provide service on both sides of the road. They had asked companies proposing microtrenching to go down one side of the street, cross at an intersection, and then come down the other side, but this increased the overall length of fiber, making it not cost-effective. Therefore, the preferred method is to make cross cuts across the local street every two to three hundred feet to provide service to both sides of the road. Councilwoman O’Brien asked if the companies mentioned how much it increased their costs. She noted that they were more concerned about the total length of fiber that needed to be installed and did not provide calculations or case study information. Both companies expressed concern about the requirement to go down the entire length of the street, cross at an intersection, and then come back down the other side to avoid the cuts across the street. Councilwoman O’Brien asked if, after allowing microtrenching, a second company coming in two years later would use the same microtrench to lay their fiber in the neighborhood. Mr. Sonoda explained that the second company would install their own microtrench. In Mesa, the standard is for the second microtrench to be a minimum of 3 feet away from the original one. The companies would likely have to make the same number of cuts across the street to provide service to both sides. Unless the second company followed the preferred method of going down one side, crossing at an intersection, and then coming down the other side, there would be multiple companies cutting across the street to serve customers on both sides. Councilwoman O’Brien asked if multiple companies are going into the same neighborhoods at different times in the East Valley. Mr. Sonoda stated that there are a couple of locations in Mesa where two companies are in the same street. Councilwoman O’Brien asked if the companies did the work at separate times, not together. Mr. Sonoda confirmed that the work was done at separate times, not as a joint trench where a utility company installs conduit for themselves and other providers. Councilwoman O’Brien asked if joint trenching was discussed with the providers. Mr. Sonoda stated that they discussed joint trenching with the providers, but the providers did not have any interest in sharing. Councilwoman O’Brien asked for more information about the sample trenching that was done in one of their yards. Mr. Sonoda explained that in April 2021, the City conducted a microtrenching trial with Crown Castle, a telecommunications company. They performed four sections of 125 feet each, using different types of backfill. They cut a trench about 10 inches deep and filled the top 8 to 9 inches with half sack slurry, a mixture of dirt, gravel, and a little cement, which is the standard backfill for construction projects in the streets. They used different strengths of backfill and two methods for restoring the asphalt surface: Micro Trench Inlay (MTI backfill), an epoxy compound placed in the top inch and a half of the trench, and a 24-inch-wide mill and overlay, where they milled a 24-inch-wide area across the asphalt, inlaid it with hot asphalt, and rolled it with a roller. Councilwoman O’Brien asked if these were microtrenches or normal trenches. Mr. Sonoda confirmed they were microtrenches. Councilwoman O’Brien asked how those microtrenches are performing today. Mr. Sonoda stated that the microtrench analysis was done in January 2022. The City's materials lab recommended the 24-inch mill and inlay, also called a T-top, as the preferred method of restoration. This recommendation was discussed with the companies wanting to do microtrenching, but they were concerned about the additional costs of milling 24 inches and restoring the asphalt. Councilwoman O’Brien asked if the microtrenching was done near the gutters, as shown in the pictures, or in the center of the street. Mr. Sonoda stated that the microtrenching was done more in the travel lane. This was done three years ago, before Mesa and other cities allowed microtrenching. They chose locations they believed to be logical. He explained that doing it near the gutter or where asphalt and concrete meet is problematic because stormwater travels there, and there is concern about water penetrating the roadbed, even with mastic or crack seal, which could undermine the roadbed. Councilwoman O’Brien thanked Mr. Sonoda for the technical information and apologized for moving on to another topic. She wanted to understand the structure for payment better, referring to slide nine. She asked if the fee of 3 percent on direct gross revenues or the $12 per residential unit is an either/or choice, and how they determine which one they are paying. Mr. Brown clarified that it is one or the other, whichever is higher. Councilwoman O’Brien acknowledged that companies want to go into neighborhoods with existing houses based on infrastructure needs. She expressed interest in discussing how to incorporate fiber installation into new street developments in District 1 to avoid future street cutting. She emphasized concerns about street durability and drivability, particularly referencing Pinnacle Peak between 35th Avenue and 55th Avenue, which has been under frequent construction. She requested this topic be added to the discussion list. Mr. Stephenson stated that they will work with the industry over the summer to find ways to involve them more upfront, in line with Councilwoman O'Brien's suggestion, and agreed it is a great idea. Councilwoman O’Brien expressed her appreciation and emphasized the importance of providing residents with choices, noting her experience in neighborhoods with limited options. She also wanted more discussion on joint trenching, expressing concerns about having a trench every 3 feet in the street, which affects bike riders and road conditions, especially during monsoons. She asked if the proposed fees are comparable to what current vendors are paying in the City. Mr. Brown confirmed that the proposed fees are very similar to what Cox is currently paying. Councilwoman O’Brien asked who the other vendor is. Mr. Brown stated that the other vendor is Lumen. Councilwoman Hodge Washington thanked the speaker for the information, noting that joint microtrenching is not feasible and would require being three additional feet from the last microtrench. She mentioned that while much discussion has been about microtrenching, it is not the only method providers are considering. She asked for information about the horizontal bore process proposed by other companies. Mr. Sonoda explained that horizontal boring involves drilling under the roadway and pulling conduit into the drilled hole. This method is currently used for installing utilities such as electrical, gas, and telecom in the right-of-way. The two companies with temporary construction licenses have agreed to use this method and the installation procedures currently allowed in City streets. Additionally, they will examine using aerial fiber in neighborhoods with existing aerial infrastructure, installing cables on poles to serve residents. Councilwoman Hodge Washington asked if the department agrees that the horizontal boring process preserves the structural integrity of the streets and meets the restoration requirements in the city code. Mr. Sonoda confirmed that the horizontal boring process preserves the structural integrity of the streets and meets the restoration requirements in the city code. Councilwoman Hodge Washington summarized that the proper methodology for fiber- to-the-home has been identified, but some vendors are requesting an additional methodology and exemptions from restoration requirements. She expressed concerns about maintaining street integrity and noted that granting exemptions could lead to other partners, like home builders and developers, requesting similar exemptions, leaving the City responsible for restoration costs. She asked if this summarizes the concerns. Mr. Stephenson confirmed that Councilwoman Hodge Washington's summary is correct as it relates to microtrenching. Councilwoman Hodge Washington thanked Mr. Stephenson for the clarification. Chairwoman Stark emphasized the importance of the City's investment in the pavement management program. She mentioned the long discussions with utility companies about tearing up newly paved streets and the solutions that were reached, despite initial resistance. She hopes that, over the summer, all council members will be involved in discussions about the steps and issues. She appreciates the presentation and stressed the need for both affordable internet access and good road maintenance, as road quality is a top complaint from residents. Ensuring compliance with existing standards while making others do the same is crucial. Councilwoman O’Brien asked for clarification on whether the structure for the other vendors is the same as what is being proposed for these vendors or if the net cost is approximately the same. Mr. Sonoda asked Councilwoman O'Brien if she was referring to the structure of the construction process. Councilwoman O’Brien clarified that she was referring to the payment structure from Cox and CenturyLink for having their cables in the streets compared to what is being proposed here. Mr. Sonoda explained that under their current license, Cox Communications pays 5 percent of cable TV revenues only. Telephone and internet services provided by Cox are not subject to any license fees due to federal regulations. Lumen is exempt from any fees because of their status as a telecommunications provider, which is the same for other companies granted a certificate of convenience and necessity from the corporation commission, exempting them based on state statutes. Councilwoman O’Brien acknowledged that the comparison is not like comparing apples to apples and thanked Mr. Sonoda for the clarification. Mr. Stephenson added that staff anticipates when Cox's agreement expires in the next couple of years, the provisions agreed upon now will likely be applied in those discussions. He mentioned that they will ensure to visit with all council members over the summer and early fall before presenting a revised proposal regarding this item. Chairwoman Stark opened the floor to public comment. CALL TO THE PUBLIC Jessica Dodd opposed the unauthorized dumping of unfiltered debris in March 2020, stating that the Office of Environmental Programs (OEP) was misled by the Parks Department, and described the situation as sloppy or criminal. She invited people to visit the site to see the impact. Tim Sierkowski opposed the unauthorized dumping, expressing concern that a ranger would not have opened the gates without permission from the Parks Department. He raised issues about unscreened dirt and the potential for recurring illegal dumping, mentioning that the EPA might review all dumping activities from the past four years. Eric Nielson asked about the planning part of the Transportation Infrastructure and Planning (TIP) Subcommittee and how the federal government could impose a consent decree on the City. He mentioned that Police did a good job. FUTURE AGENDA ITEMS Chairwoman Stark mentioned a two-month break and wanted to add infrastructure and state land areas as topics for future agenda items. ADJOURNMENT Chairwoman Stark adjourned the meeting at 11:25 AM. Respectfully submitted, Kat Consador Management Fellow