Gilbert · 2023-11-28 · other
Regular Meeting - 11/28/2023 6:30:00 PM
Summary
Summary of Decisions and Discussions
- Invocation and Pledge of Allegiance: The meeting commenced with an invocation by Sharon Katsonis and the Pledge of Allegiance led by Council Member Anderson.
- Communications from Citizens: Two citizens addressed the council, discussing issues related to a police investigation and a rate increase notification.
- Consent Agenda: The council approved consent agenda items without any requests to pull specific items.
- Public Hearing on Fees: A public hearing was held regarding proposed system development fees, with presentations outlining the need for fee increases due to rising infrastructure costs and growth demands.
- Vote on Water and Solid Waste Rates: The council favored the cash bond gradual option for increasing water and solid waste rates, with a vote passing 4-3.
- Ethics Investigation Report: Following a discussion on the ethics investigation of Mayor Peterson, the council voted to accept the report but not its findings, with a motion passing 6-0.
Overview
During the Gilbert Town Council meeting on November 28, 2023, various topics were discussed, including the invocation, public comments, consent agenda, and public hearings related to fee adjustments for water and solid waste services. The council ultimately voted to adopt a gradual increase for these fees, reflecting the rising costs associated with infrastructure and service demands. Additionally, a report from an ethics investigation concerning Mayor Peterson was reviewed, leading to a decision to acknowledge the report while disputing its findings, aiming to close the matter and emphasize the need for further training.
Follow-Up Actions and Deadlines
- Public Hearing Date: A public hearing regarding rate increases is scheduled for February 6, 2024.
- Training Requirement: The mayor is required to complete training on council and open meeting law, with a report on the status to be presented on December 12, 2023.
- Community Engagement: Traditional media and print outreach campaigns will be developed to communicate upcoming rate changes, contingent on $770,000 approved by the council.
Transcript
View transcript
e good evening welcome to the Gilbert Town council meeting for November 28th 2023 I will call this meeting to order we have I'm going to ask everyone to please silence your cell phones and devices as we start the meeting this evening I even had mine go off during the study session tonight did you hear that um and we will move into our invocation which will be presented by offered by Sharon katsonis lay leader at First United Methodist Church of Gilbert thank you Sharon for joining us good evening thank you Council good evening neighbors let's pray dear heavenly father we come together as a community with hearts full of gratitude and hope we thank you for the gift of community for the bonds that unite us and the strength we find in each other in this season of Celebration and together we lift up our community to you may your love and grace abound Among Us fostering Unity understanding and compassion help us to cherish and appreciate the diversity within our community recognizing that is through our differences that we can grow and learn from each other loving God we pray for those who may be facing challenges during this time bring Comfort to those who are lonely healing to those who are hurting and hope to those who may be struggling May our community be a source of support and encouragement to all its members in the midst of all the festivities help us to remember the true meaning of this season the gift of your son Jesus may his love be The Guiding Light in our community inspiring us to love and serve one another selflessly as we share meals exchange gifts and enjoy the company of our neighbors let us not forget those who are less fortunate give give us hearts of generosity and compassion prompting us to reach out to those in need and make a positive impact on the lives of others Lord bless our community with peace and joy that extends Beyond this season May the spirit of unity and good will prevail throughout the coming year making Gilbert Arizona a beacon of love and kindness we offer this prayer in the name of Jesus Amen thank you Sharon thank you for sharing um this evening and mentioning gratitude at the very beginning Sharon helped to organize the Gratitude Gathering that was held a few weeks ago that was a combination of Gilbert and Chandler and it was a lovely evening to come together and just celebrate all that's good in our communities and I appreciate you stepping up to come and offer the invocation this evening too we very very much appreciate you next we will have our Pledge of Allegiance led by Council member Anderson please join me in reciting our pledge I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all next I would like to ask our town clerk to please offer the roll call Mayor Bridget Peterson here vice mayor Kathy tilky here council member Scott Anderson here council member Chuck Bon Giovani here council member Bobby Buckley council member Yan Kowski here and council member Jim torguson here a quorum is present thank you cheli now we'll move on to we don't have any presentations and proclamations this evening we'll move on to Communications from citizens I pass to vice mayor tilki thank you mayor um before I begin I just want to check with um chevel these are the only two that is correct thank thank you so much um good evening the Gilbert Town Council values citizens comments and input anyone wishing to speak before the council must fill out a request a speak card for each item they wish to speak on and submit it to the town clerk or place it in a bin provided prior to the start of the meeting the communications from citizens portion of the agenda provide citizens an opportunity to identify for the Town Council matters of Interest or concern related to town government under the provisions of the Ariz Iona open meeting law the Town Council is prohibited from responding to issues that have not been properly noticed therefore the Town Council may only listen to citizens who wish to address them and at the conclusion of the open call to public response is limited to individual members of the council responding to criticism made by those who have addressed the public body asking staff to review a matter or asking that a matter be put on a future agenda so the we ask that when your name is called you come forward to the podium state your name and place a residence and then begin speaking we will have 3 minutes and you'll see the time clock on the the monitor in front of you so the first one who comes up will need to turn on the red light you'll see it red up here that way you'll know your mic is live and then um at the conclusion we will um call the next person up tonight we only have two speakers the first is Brandon riff followed by Bruce lit B Brandon good evening I've got a court document here filed by the town that says that uh I caused an actual disruption and failed to abide by the town's required rules of decorum as justification for rejecting us having the police remove us from a council meeting um I know you're not getting the best advice from your attorney he seems to drop the ball a lot um so I'm going to read just uh two quick excerpts here from two landmark cases the first is white versus city of Norwalk and it says basically that a speaker can disrupt a meeting by talking too long being unduly repetitious etc etc and it says that A disruption occurs when the council is prevented from accomplishing its business in a reasonably efficient manner that's the definition of of A disruption now Norse versus city of Santa Cruz it says in this case cities argue the city argues that they may Define a disturbance in any way they choose specifically the city argues that it has defined any violation of its decorum rules to be a disturbance therefore it reasons that the first case Norwalk permits the city to eject anyone for violating the city's rules here's what the court said we must respectfully reject a city's attempt to engage Us in double speak actual disruption means actual disruption it does not mean constructive disruption technical disruption virtual disruption NK prot tunk disruption or imaginary disruption the city cannot Define disruption so as to include non-d disruption to invoke the aid of the Norwalk case so we've got this guy uh Ken Fields who does an investigation quote unquote by the way he's unlicensed he's not a private investigator I looked at the statutes my attorney looked at the statutes we'll be sending a formal request uh for a criminal investigation it is against the law to perform a private investigation without a license just as much as it's against the law for me to perform Dentistry practice Dentistry without a license it's a crime and you guys paid and used public money it's a total hit job total cover up I'm looking at it I'll give you a couple examples while my time is uh still active uh he's leading the witnesses he says to a witness he only only interviewed us me and Ryan um says he interviewed the mayor won't give us the video makes no mention of the questions asked of the mayor makes no mention of what the mayor's answers were interviewed one witness that witness um he didn't mention in his report anything that guy said so I really wanted to know what that guy said so I got the uh transcript and I was shocked I was absolutely shocked I'm looking at it and give you a couple examples he's leading the witness and he left all of his respons is out you would think an investigation about somebody saying hey I was not disruptive and somebody else saying yes you were you'd want to know what that witness said by the way he wouldn't he he wouldn't uh interview any of the other Witnesses said it wouldn't be fruitful to interview an eyewitness unbelievable I'll give you just a couple quick examples and then I'll I'll I'll step away um why didn't you hold your sign well he said I'm sorry um you didn't hold your sign above your head you just held it in front of you right and the witness says I had it propped in front of me uh and I did have it well I was I I did have it over my head as well and then in his report uh judge Fields says the investigation has revealed however that the complaintants at times were holding their signs above their heads unlike other sign holders at the meeting he's saying that nobody else was doing that when his witness says yeah I did do that it's a lie I don't care what you call it it's a lie he says here the complainants were asked last one complainants were asked to leave the council meeting because the manner in which they were displaying a poster stating stop lying I think uh judge Fields needs that sign also because nothing but lies in here nobody asked us to leave the the mayor ordered the police to remove us he says here the request to leave was made by the police officers of the town of Gilbert and then he says that uh mayor Peterson asked at certain signs be removed upon the manner display uh being displayed not content video evidence of the mayor stating uh remove the people from the back of the room please those three people holding up signs that's the truth um this is ridiculous it's embarrassing I don't appreciate my taxpayer dollars going toward a phony fraud who's unlicensed and a town attorney who doesn't know better and allowed it to happen thank you thank you Brandon up next is Bruce levich can you push the button on the mic there it needs to it'll light up when it's on oh there we thank you okay good evening mayor and council members um I'm here to talk on number nine uh I got a uh a message back on the 12th Sunday night about 9:00 the Gilbert newspaper saying that there's going to be a rate increase so I'm very diligent I went to the city website and it wasn't on I called the mayor's office I called a couple of council members I texted you nobody got back to me that Monday day that Tuesday it's called transparency I wanted to look at the paperwork about this rate increase I'm a resident of Gilbert I spoke to you last November in regards to the light rail I'm back again once a year like a no good penny uh finally somebody contacted Mr braon and he said oops we forgot to put it up on the website well that's transparency I'm a taxpayer of the town of Gilbert I want to know why it wasn't up and I had to go through all these hoops and whistles he was the only person he was a gentleman he called me back but if you let me uh go on here I'm in support of a strong INF structure for the town of Gilbert and the rate increase should be gradual to not to hurt senior citizens the disabled in this town and the hardworking families in Gilbert that are trying to make a living with the increase in cost from groceries to construction costs the town needs to prioritize the town of Gilbert is still approving apartment complexes water park in Santan were short water I seen this coming 10 years ago that something like this was going to happen we live in the desert the biggest user I think of water in Gilbert is probably the town so what what is the town's action plan for all the property that they own the parks the bull parks are they going to put gravel on it and not water it I haven't seen any action plan but you want us as you said in the me one of the council members well we have to tighten our belt well the town of Gilbert needs to tighten their belt also not just the residents you know it works both ways I'm in support of what you're going to do but I think it needs to be gradual and not hurt our citizens in this good town and I hope you you you you take it to heart and also I got a charge of Mr buun saying that all the garbage trucks need to be replaced well my previous employer in law enforcement we had what was called a fleet manager when the vehicles hit 100,000 miles they went before the count County Board of Supervisors and got a procurement and had them replaced I can't believe all the garbage trucks are now going the to Hell in a hand basket all at once and I believe one more second thank you and he said uh you know the supply chain well Co didn't hit until 2020 how about 2018 there was no problem with the supply chain 2019 so you know we need to if you're going to put this stuff out have things accurate and please be transparent that I don't have to make a a gazillion calls so it's on the website so other citizens can view it thank you so much have a good evening thank you Mr lit um with that um that's it for the communications from citizens mayor thank you vice mayor mayor moving on to the consent agenda back to you thank you um mayor there was not a request to um pull anything from the consent agenda therefore I'd make a motion to approve consent items number one through five I have a motion by vice mayor tilki can I have a second I'll second it second by councilman ran Giovani please vote motion passes 70 thank you vice mayor consent agenda is handled for this evening moving on to the public hearing portion of our agenda items will be heard at one public hearing at which time anyone wishing to comment may do so we have two items on our public hearing item agenda I will open the public hearing one is a liquor license would anyone like a presentation on that or would someone like to make a motion mayor I'll make a motion to approve item number six thank you vice mayor has made a motion can I have a second I seconded by council member Buckley please vote moving on to item number eight I never closed the public hearing so it's still open excuse me item number seven moving on to item number seven public hearing is still open moving on to fees conduct a hearing on proposed system development fees for the necessary Public Services of land use assumptions and infrastructure um would we please have um who's doing the presentation Kelly Kelly F please come down and do a presentation on the fees thank you Kelly thank you mayor and Council I've got just a quick presentation with about 10 slides for overview of what's happening tonight with the system development fee updates perfect so tonight is a public hearing um and we are talking about the system development fees which are fees charged by the city to offset the cost of new growth they are not paid by existing residents or businesses they are only paid by new uh residents and businesses that move in and build in our community and the cost is to offset their impact to our infrastructure in the community it goes with the philosophy that the town has historically had of growth pays for growth State Statute does require we update these fees every 5 years at least we did update the water infrastructure just recently because of the big changes with the northwater treatment plant but our other fees are at that 5-year Mark so we're doing them all together at the 5-year Mark to get them updated the timeline is very long with this process with a lot of public Outreach so we started in September with that notice of intent letting all of our partners know that we were planning to update the fees and that really kicks off the public Outreach and collaboration process tonight is the public hearing for the land use assumptions what we think will happen with our growth and then our infrastructure improvements plan which is the projects that are needed to provide infrastructure for the growth and then we The Next Step would be in January to actually adopt the land use assumptions and infrastructure Improvement plan the fees come next As a matter of transparency in the town we we provide the study with the fees from the very beginning just to help with the discussion and be really transparent but the fees aren't actually adopted um there's a public Hearing in February planned and then adoption wouldn't be until April of next year and then the fees wouldn't go into effect until at least 75 days after that which would be July 1 of 2024 so a very long process with the stakeholder Outreach we have uh been able to have meetings with the Chamber of Commerce their policy committee the Home Builders Association we do have another meeting planned with the Home Builders Association this coming week um to continue dialogue with them we have reached out to the multif Family Association they have received uh the study but haven't come back with any questions the growth assumptions that are in the plan are lower growth assumptions than we've had over the past 10 years um our building permits are slowing the assumptions do align with the mag uh Maricopa Association of governments their population and housing estimates so we're trying to be very transparent about where that data comes from and it is a slower growth that is planned over the next 10 years the service area would be all of the town for all of the fees except the Wastewater fee and it's broken into two sections which is the same as it's historically been for our study the Neely area and the Greenfield area which are shown on the map and that's because they're served by two different wastewater treatment facilities the infrastructure Improvement plan so all of the infrastructure that is included in the study are necessary to serve New Growth they maintain the existing level of service we can't increase the level of service for New Growth it's the same as our current residents have and it follows the guidelines of State Statute the fees are looking to increase quite substantially so it would be about doubling um for comparison though we wanted to give you some information about what single family housing value has also done over that period of time so we have full cash value from the Maricopa County assessor's office which was about 250,000 in 2019 when our last study was done compared to the fees were about 8% of the home value with the fees that are proposed now and the home values that have changed it does maintain about the same ratio about 9% of the total home value even though we've seen a substantial increase daring that inflation it's getting everyone um with the this is what it looks like for the Greenfield area and the Neely area old fees on the left and then the new fees um or proposed fees would be on the right and you can see all of the different categories Wastewater Water Resources Parks and Recreation roads traffic signals police and fire are the categories commercial is about the same with the increase here this is an example of about a 2500t restaurant Standalone um we just pulled a typical permit and ran the fees for what it would be under the two scenarios there the next steps is tonight we'll do the public hearing so receive any feedback on land use assumptions infrastructure improvements plan to accommodate growth we'll continue to work with our stakeholders and then incorporate uh any of that feedback in for the January 9th meeting which is when we would ask Council to adopt and make a decision on the actual land use assumptions and infrastructure Improvement plan any questions for me thank you Kelly any questions for Kelly at this time council member Kowski hi Kelly thank you for making that presentation um in the packet of information it had a report that had some assumptions on um like like the inflation rate increase and some of the projects that were anticipated to be funded I understand that growth pays for growth but I was a bit surprised to see a few projects such as the aao road bridge that um have other funding sources can you explain how that report separates out um infrastructure and how it can be paid for by other means because it may be necessary with or without growth sure um so we do include uh different infrastructure that's in there the acao bridge that you mentioned uh has several funding sources on it the study goes through and pro rates we believe this portion is for traffic that would be associated with new growth and we looked at what current traffic is on the roads North and South of acao Bridge to say we believe there's about this much traffic that would be for existing growth and so anything that's for existing would need to be paid for with another funding source accommodating that traffic and then anything that's associated with new residents or businesses moving in only that portion would be included in the study to be paid for with this money with the system development fees could you also talk a little bit about the assumptions for the inflation I know we've seen higher inflation in the past few years but this these were assumptions for inflation in coming years yes so we had to start the study with the information we had available at the time which would have been the fiscal 24 so current year CIP information and then we Rec recogniz that we are seeing large amounts of inflation so we put an assumption in there of a 20% increase from 24 to 25 and then I believe a 10% and then 3% so hopefully it moderates after that now that we're starting to get some of the CIP information it's not ready to be made public we're still working on it internally but as we worked with our consultant most of the projects increased by that amount or more so the study fees would actually go up from where they are now if we updated all of the project information to be what we're planning for the fiscal 25 CIP so we know that it is a large increase but it is actually a conservative assumption compared to what we're seeing in the actuals coming from CIP I have one more question um I saw that a large part of the increase was related to Water and Wastewater projects and infrastructure is that because of the wastewater treatment plant project or is it a combination um the water treatment plant is a large part of it only a portion only the portion of the plant costs that are moving it from a 45 million gallon per day facility to a 60 million gallon per day facility are included in the study but the new costs to construct the plant are substantially higher than the cost per gallon was in the past and so we are seeing an increase there okay yeah that's good to hear that it was just for that increasing capacity but it's it's still always a bit concerning when you have this big project and it it it it may seem to skew um numbers when that when that facility is going to serve our community for a really long time for decades and decades and so I I don't want it to overburden our our community in the short term just because of a large T Improvement project like that thank you council member torguson I had noticed you had a a slide up for a 2500 foot restaurant or so would that not kind of prevent growth at that much of an increase that's a two and a half three times the cost wouldn't it stop I mean I want growth to pay for growth but wouldn't that kind of stop growth I I would certainly hope not that's definitely a question for Council to look at what we're doing is calculating this is the cost that it will be for us to Prov provide service to these residents and businesses to maintain our level of service in the community that we currently have and hopefully they also have inflation on their revenue side where both sides are growing for their business that's a stout number to be able to build a 2500 foot restaurant I mean really Stout number um and if they don't if there is no growth because of the increased fees which again I want growth to pay for growth but then who pays for the aao bridge because if it's not being subsidized IED by this your system development by the system development fees how does it get paid for then if we have no additional New Growth or extremely minor yes so they would pay their portion of it and then at some point in the future I I assume at some point in the future the growth will come um that it won't stop completely in the town but I those are probably assumptions more for policy level know more the financial side all right council member Anderson sorry a lot of our new growth uh into the future as we approach buildout is it going to be infill is that factored in in any way where there's already infrastructure in place to service those Parcels are we charging them double for what for that good question council member Anderson um we do work hard not to charge doubly so if there is a single family house already on the property that for example has a 3/4 inch meter and they're splitting it and we're going to build two houses on the property instead they already have rights to the infrastructure for one 3 3/4 inch meter they would only need to pay for the increase which would be the second one same with the other fees so if it's only the increase from the infrastructure that they currently have okay is that true for fire Police Service also that the square foot of the building that exists currently would already have that level of service they would only need to pay for the increased square footage okay thank you Vice May tilki thank you mayor um thanks for the presentation Kelly um I know we're we have a one-on-one scheduled on this and so I'll get into the details with you um when we have an opportunity um in regards to councilman torgerson's concern um the reality is if growth were to start stop we would have to restructure the way that we pay for that and that means all the residents and businesses that are here today will end up paying for it in the future I mean that would be the end result if if growth stop every I believe we do this every five years and we have to readjust those numbers as we go along um so I think the bottom line is we would all be paying for that at at a different time um I was part of that original um group when we implemented system development fees and um while it may s sound flippant when I say it the reality even then was that last house is going to have a lot of system development fees they're going to be responsible for and it it it is a flippant way of saying that what we're seeing today is the fact that growth has slowed those dollars are going up and also the cost is going up and I don't know how and I I don't know if it's 20 years ago it could be 15 years ago that we put these in place but um you know we were and we continue to look into the future and try to estimate what those costs are going to be what our needs are going to be and and that's why we do this comprehensive um a Capital Improvements program and outline how the uh payments are going to be paid all of that to say Here we are now getting close to buildout and growth paying for growth means something a little different than it did when we were growing so rapidly right now it's um we're going to have less growth who's going to pay for it if if new growth doesn't pay then that's going to be distributed amongst everybody that's here today and that's the big question I don't have the answer I wish I had the answer I'm just saying that is the big question that we're faced with and um I appreciate you know the fact that we have the opportunity to look at some of these assumptions and maybe there's something we could review or and change I don't know but it unfortunately it's a hard Cold Truth right someone's got to pay for it and it's either us or us together you know and so I'm looking forward to our one-on-one but I thought I would just share that in in response to your comment council member Tuson yeah and that that was my point in saying that if something's getting built and we don't have enough growth to support that all of us will end up paying for it and then maybe that I mean and I'm not saying the bridge isn't necessary at some point but that bridge becomes everybody's burden yet there's only x amount of cars that are going on we're trying to encourage more but we're not going to have growth there to support it but we're going to pay for it and that bill keeps going up all the time I I can't even remember the last number that was attached to the building of that bridge and it's Stout so I want to think of the balance to keep the encouragement to grow and be dense without having it fall back on the residents council member Buckley um I would just I'm would just like to say I'm totally in line with what Kathy was talking about and that those were some of the things that I was going to maybe discuss as well I just think that's it's a huge number for for commercial right now and I would like to see us you know be able to discuss that and maybe somehow re-evaluate those numbers if possible I know you guys have worked hard to get where you are here but I just I just think and feel that that that's a huge number to put out there right now but thank you for all your work council member bonani I'm reiterate what everyone said um and it may not be your Department per se Kelly but are we meeting with the stakeholders Chamber of Commerce and those kinds of things to get their feedback on this also as far as affordability goes and you know what they foresee also yes any feedback that they provide during the meeting so as as staff we create the study that is the maximum amount supported by Statute and then as policy makers you can make the decision about what fee you want to implement if you can do something lower you can't do something higher if you do something lower then the options are we have a lower level of service moving forward or existing residents have to pay to maintain the same level of service for the new people sure just a big number I hope we can work on it together it's that's a big number thanks unfortunately it's bigger because of inflation and we're all facing that including the town and how do we do the projects that we want to do and need to do there's infrastructure projects that need to be done and there are infrastructure projects that need to be done because of the new growth and um there's infrastructure Pro projects because of the fact that the Town grew so fast all at the same time like vice mayor mentioned that they're all aging out at this point and it's unfortunate that it's happening right now as um inflation is so high pushing all the other costs up um Kelly I look forward to meeting with you on this I'd like to arrange some time for us to sit together and discuss it we do have somebody that would like to speak from the public so I'll let you sit down and then we can call you back up if we have any followup questions okay thank you thanks Kelly I have um three requests to speak but they're all requesting the first request is from Brennan Ray and the other two are requesting that we give their time to Brennan Ray so I'm going to just give Brennan Ray a little extra time and give you six minutes Brennan if you'll come up to the middle Podium there thank you I think you know the drill just introduce yourself please there you go there we go there we go I'm learning this good evening mayor members of council Brennan Ray 1850 North Central uh here representing a number of clients but specifically the home Home Builders Association of central Arizona appreciate the opportunity to visit with you very briefly uh and you saw Kelly put up a list of a December 4th meeting that meeting is with me so we look forward to the opportunity to talk with staff uh as well um because there are a number of concerns as we have had the opportunity to review the draft um first and foremost I think from a legal perspective uh when we look at it um we believe there are some issues from a state statute perspective and certainly the recent uh state supreme court case of Morana um versus the Southern Home Builders Association uh case as well specifically those cases and statutes talking about proportionality and what is fair it is there is no question you will not hear me argue I've stand up stood before you and represented a number of developers that growth does pay for itself and we're certainly not here to Advocate that we should wipe our hands of it and have nothing to do with continuing to pay for that growth but as we look at it I believe that there are number of underlying assumptions in this um that really uh should cause us to reflect uh and really question how much of that burden should we place uh according to the report on 177,000 people because that's essentially what we're talking about the population assumption growth is 177,000 people and that's what we're looking to burden just to give you an idea of the total cost is and my math is probably off we're talking about between fire police traffic in Parks a total of 100 7, 850,000 that's a hefty number when you aggregate it over the course of everything that needs to be done that breaks down to roughly 6,000 per person uh if we factor that down even further down to a house and what does that break down to on a mortgage at today's rates and everything you factor a 30-year mortgage a homeowner will need to pay an additional $332 a month um over the life of a a 30-year mortgage that's equates to an additional $112,000 that they are paying on top of anything else because while growth pays for itself I will tell you that that is a fixed line item in any developer's budget that gets immediately passed through to the end user um it does not come out of other things it goes to the end homeowner the end uh renter the end commercial developer industrial office whatever you want to say that number has passed through directly to them so as we look at it obviously um you know as some of you have noted uh there's a real concern with the inflation rates um certainly you know if you look at the base assumption rates you know 20 and 10 and then 3% but then we look at the cumulative effect of that and the Aggregate and we're talking in some instance 120 to 167% of inflation that's occurring per the study you look and you look detail down into the fees some of that inflation ranges from 120 to 144% increase comment was made we hope Revenue grows that fast I'm not sure that I know of any business be they a residential developer or a commercial developer that presumes that they're going to have revenues of 120% up to 140% based on some of these fees that we're looking at and stuff like that so again we're not saying that the fees shouldn't be increased we're not here to do that but just as we look at it in context and just to give you an idea across the valley there um you guys are obviously competitive with a number of municipalities and attracting businesses and ensuring growth but your proposed fees the all-in number when you look at not only the system development fees but the water and wastewater impact fees as you look at those that is going to be two times uh double more than what anyone charges today across the valley um it is two times even some of the draft studies that are underway in other municipalities uh and so that is a definitely a huge increase in a concern um and then as we look at it again in some instances there are some underlying assumptions uh for improvements to existing roadways existing things uh and that's attributed a 100% New Growth I find that curious because some of those same improvements are going to benefit the existing residents as well and while we cannot abortion that um cost to the existing residents um still there is a benefit that is incurred by them for these improvements the other thing that I would tell in the time that remains and specifically as we look at it what tonight is and the next step on January 9th deals with the land use assumptions in the iip there are a number of things that if we look at that from traffic and Roads and intersections where um I want to make sure that we're not double dipping because I know having represented a number of developers when they come into a corner that's undeveloped your transportation staff is very good at ensuring that our traffic trff reports um say uh that we need a traffic signal uh or that we need this roadway Improvement and so the developer will then pay those fees for the actual physical construction and I know there are a number of roads and intersections where developers my belief is is that they have already paid money into the kitty so to speak for that and so as we look at that now we're going to charge then system development fees to improve intersections that the town may already have money in their coffers for just a little bit curious and those are questions of course that we will go through with staff because ultimately that that rests with them and I could go on and on but uh in my time that remains uh again we look forward to working with staff we're not here to say that there shouldn't be an increase in all that'd be absurd um but we are here to say let's be reasonable let's figure out a way to to make things work together that was perfect Brenan um does anyone have any this is public hearing portion of our agenda does anyone have any questions or comments for Brenan specifically while he's at the podium seeing none thank you thank you um would anyone like Kelly to come back do you have any further questions or comments for Kelly seeing none then I will go ahead and close the public hearing and bring it back to the Das I do not have any online public comments for this for anything on our public hearing agenda um any discussion by the council seeing none we'll all plan to meet with Kelly over the next few weeks before January 9th I'm seeing some head nods thank you Kelly and staff presentation thank you brenn and Ray for coming out to share your thoughts and thank you for being an active participant in the process um we do what we do best because we have stakeholders like you that are always active in the part in the projects that we're looking at and moving on to our administrative items we have um just two items on our agenda one is Council administrative item to review and discuss final Act final report and the recommendation of a code of ethics complaint filed against Me by Brandon riff and Ryan Handelman and um I will pass off to the vice mayor um mayor could I ask that we hear the fees first and do that one second okay be because I think there's uh public information that I think the public would like to hear okay then we'll move on to item number nine fees um there's two portions to this excuse me three portions to this on our agenda this evening to direct staff to publish a notice of intention to increase rates which means we're just putting this out for um a possibility of increasing the fees set the public hearing date for February 6th of 2024 and a contingency request for $770,000 for traditional um a media and print campaign to get make sure that we are able to get the information out that was mentioned during the public comment this evening um would you like a presentation staff from staff excuse me and I see Eric making his way to the podium did you hit your button all right good evening mayor and Council thank you for the opportunity to share share with you this important information for our community I want to begin by first acknowledging the great responsibility that the Town Council has in planning for the future and the weight of the decisions you are all asked to make when it comes to water rates it can sometimes be condensed into a desire to not have a brown lawn which isn't trivial but it isn't the extent of the decision either there are outside forces acting on our ability to provide clean reliable Water Service to our residents these forces could be the pollution affecting our water supply or drought decreasing the amount of water we have another force acting on us is simply the passage of time and how infrastructure wears out over time and needs to be replaced if we do not meet these challenges headon our community could be reduced to the option that others even in the valley face which is to haul water for basic needs that potential future puts a brown lawn into perspective I think the good news I have for you is that this Council and the community is proactive and always Rises to meet these challenges before it and I'll present to you a plan tonight for how we will meet those current challenges and continue Gilbert's exceptional quality of life which of course is a key point of this conversation our community loves Gilbert 97% of the respondents in the 2021 National Community survey gave positive reviews of the town as a place to live and the over all quality of life this community did not happen by accident and significant efforts in planning funding and maintaining the infrastructure that supports the quality of life have been invested in over many years and decades this is reflected in the result that 95% of respondents felt very or somewhat safe from fire flood or natural disasters and that 86% rated the quality of the utility infrastructure as excellent or good the presentation of rates tonight and the vital needs that the additional Revenue will fund will help continue to support these high satisfaction ratings and those expectations that our community has for us the high quality of life did not happen overnight and it's primarily the result of three things vision and strategic planning consistent intentional investments in infrastructure and Resources by our town council's leadership over decades and just as importantly sound financial policies and practices that are adopted by the Town Council the Town Council has adopted policy statements regarding user fees the water fund and the solid waste and recycling fund are what we call Enterprise funds this means that user fees need to be collected to recover the entire cost of operations this also means that as a financial practice we do not subsidize these utilities rates are how we fund critical water and infrastructure and services utilities are separate Financial entities under the Gilbert umbrella that operate financially independently and are not subsidized by taxes and do not subsidize taxes adequate fund balances are maintained to allow Gilbert to continue providing services to the community in case of unexpected emergencies or economic downturns following these policies is a key part of the reason that we have AAA Bond ratings there are less than 50 communities in the country with that rating and Gilbert is one of them this Elite rating enables Gilbert to secure the best interest rates when we Bond if we stop following our our policies or take actions that may indicate that we might have difficulty repaying our bonds in essence not having enough revenue from rates to repay them then it could impact our future ratings and the interest we pay on future bonds and then the financing of existing debt as well now it can be confusing or unclear what we're trying to accomplish when you look at a singular Financial policy an individual infrastructure project or service offering but when you look at these perspective from the perspective of the city of the future the picture becomes clear we're continuing our exceptional service and we're building the foundation for future success with those financial policies in mind this evening's action item pertains to our utility rates we have four utility rates on most bills water solid waste recycling Wastewater and environmental compliance tonight we're going to focus on water and solid waste and recycling I will cover the reasons for the rate increase in more deta detail but I'm going to boil it down for you for three main reasons right now the first reason is that the volume of trash that we um dispose of and the cost to dispose of that have risen significantly on a per customer basis trucks now cost nearly double what they were two years ago now over half a million dollars each and the cost to keep our aging Fleet running have skyrocketed but the service requires that we continue despite these rate pressures you're all familiar with our Residential Services the blue and black containers the bulk trash program and our household hazardous waste drop off facility those are topof the line services from any community in the valley we also have a voluntary commercial program which includes the large rolloff containers and the traditional dumpsters it also requires a rate increase as it is a separate fund from the residential uh collections rate um fund but it faces the same issues we're receiving 10% higher tonnage than we were before covid which has outpaced our customer growth significantly on top of that we've had a 10% higher fee per ton disposed at the landfill which has resulted in a nearly 25% increase in Total Disposal costs just in the last four years as our Fleet of trucks ages because we cannot purchase new ones due to supply chain disruptions the cost to repair the older ones has nearly doubled in the last four years this swallows up any available funding to purchase new vehicles should we even be able to get in line and order them and we've also acred a 30% increase in the cost of parts and supplies for those trucks in just the last four years the fleet of the automated side loaders is aging quickly like I mentioned because Replacements are few and far between and the new new trucks have risen by 50% in the last few years the life expectancy of one of those trucks is six years but half of our Fleet is older than that six-year life expectancy older vehicles means more problems more breakdowns and they lead to service disruptions this is a nearly $10 million problem to replace the trucks that have already reached life expectancy clearly an investment is needed in order to meet the level of service that our community expects our expenses are far out seeding our revenues and our Solid Waste and Recycling funds are approaching empty but our rate proposal helps bring them into balance these are the the list of service offerings and you notice that Gilbert is at the top these are in order of highest quality to lowest quality of services our residents and our businesses expect the highest quality and reliability of these services that quality and reliability comes at an increased cost that cost is $852 additionally per month for most of our residential customers we'll be able to continue top notot services at these new rates there's a super super complicated level of service um for our commercial customers as exemplified by this graph but they amount to an average of 25% across the board uh increase now as I transition to Water Service I want to remind our public what the impact of water service has on the community an examination of other cities might be helpful the tragic wildfire in Lina was responsible for hundreds of deaths and the destruction of most of the town the water system failed which caused firefighting efforts to Halt it's impossible to say if the town could have been saved in whole but at least some of the catastrophe could have been reduced with a working water and therefore firefighting system all across the country there's a growing awareness of the Reckoning coming to our public Water Systems whether because of generations of lack of funding and maintenance care for the Water Resource itself or the impact of human pollution and overuse these are real life issues that happen when infrastructure and services are not maintained this is why our team anticipates potential problems and we execute planning and Investments to ensure quality for our community we have an example from recent memory where our system was put to the test when a development came under construction caught fire an estimated 2 million gallons was used over the several hours long incident but our firefighters were never without sufficient water supply and pressure to slow that Blaze and every fire hydrant they connected to worked this is not an accident due to our high level of service in our water system the proactive repair and maintenance of our infrastructure and our dedicated team of Highly skilled professionals that operate the syst system and consider the event from just a few months ago when a monsoon storm destroyed nearly a dozen power poles that serve energy to the cap pumping plant which is the sole source of water to the Santan Vista water treatment plant as the water supply in the canal dwindled our water team activated existing emergency response plans which included firing up the backup Water Production infrastructure modifying operations and actively communicating with regional Partners to ensure uninterrupted water service for our customers without the investments in the infrastructure a highly trained and professional Workforce as well as the maintenance and repair of the water system this could have become a water emergency for our customers but because Gilbert makes these Investments it did not become an emergency these not near misses highlight why our community enjoys a high standard of living but it isn't by accident the continual Investments make this possible but we are not perfect we have also had failures of our infrastructure and they are increasing in frequency and impact to the community in terms of cost and inconvenience just in the last 11 months we've had three major water issues that have caused expensive repair costs and sizable impacts to our traffic flow since much of our infrastructure is located underneath roads these failures tend to be very public failures which over time can erode the confidence in the public that they have in us to OB serve them efficiently we want to avoid that now that we've seen the good and the bad of water service we're going to explore how the community investments in water service are actually used when we collect rate Revenue it goes into one fund and then is used or separated into three main areas the first is Operation and maintenance and these are the activities that come to mind when you think of running a utility operating a well pumping water in the distribution system and maintaining infrastructure in order to keep it in good working condition one-time expenses are typically capital projects that aren't due to growth and that are not due to replacement like adding water quality Equipment that were not original to the utility Design This is the main lever that we have to keep rates low or steady unfortunately this usually means delaying vital projects Beyond industry standard standard or equipment becomes near failure delaying these projects has direct implications on the useful life of the infrastructure and therefore the overall cost to the community for ownership because replacement cost is much higher than just good maintenance the last area is repair and replacement fund this is used to fix broken or replace dead or dying equipment and Facilities as our infrastructure ages the repair and replacement funds importance looms because having funds set aside for these known expenses will keep rates more consistent over time and yet our water repair and replacement fund is nearly empty with this solid understanding of the water finances in hand now let's explore the cost pressures on the utility again there are three main factors that are driving these needs the need for Water Resource resiliency skyrocketing construction costs and new awareness of additional infrastructure needs we're not alone in these cost pressures either every city in the valley is in a similar situation as we are they choose to deal with their pressures is their choice we prefer to meet these challenges head-on and not pass them to our successors let's look at these individual factors in detail here's what the cost increase of raw water looks like visually this was water cost as a percentage of what it costs to operate the entire utility you can see that line is increasing with without increasing the operations funding there is less money left to operate the utility as a whole in fiscal year 17 the cost to BU raw water was about $6 million next year it's budgeted above $10 million which is a 66% increase a longtime part of our water resiliency plan was adding new wells the acceleration of a 10-year well drilling plan into two years has a large effect on our CIP and on our budget but these are not projects that we can delay in light of the Colorado River conditions every proactive measure to the Colorado River shortage on this slide requires a significant new cost above and beyond previous plans as an example that well program I just mentioned is 56 million over two years instead of 10 increased water conservation programs are likely a couple hundred, every year ongoing and the large infrastructure projects in our water portfolio resiliency could reach 100100 million in total but we're endeavoring to make good on the promise that the council has made to the community because none of us want to be responsible for headlines like these from communities whose leaders have failed them construction and repair and replacement of infrastructure is a large portion of the cost of operating these utilities the local average cost of construction has risen incredibly by 55% over the last 3 years when you consider that the 5year CIP for water alone is in the several hundred million range and that is the most affected portion of our budget by inflation you can easily understand the pressure that we're facing especially when you consider that we only in uh collect about $60 million of Revenue a year currently and that northwater treatment plant reconstruction that has the highest impact on our bottom line and its initial project its initial project cost has evolved and been adjusted as is normal practice as design has evolved over the years despite a very thorough value engineering effort in 2022 inflation of Labor and materials has caused a large increase in the cost of this project this is the single most important factor that is driving these rate needs the next GMP for the the the next phase of the water treatment plant will come before Council next month and the funding of that is contingent upon these rates funding the rest of that project additionally we identified new uh projects through our master plan but with limited funding we had to prioritize only the most times sensitive urgent projects the projects kept inside the 5-year plan were those addressing an immediate deficiency in our system or were needed to utilize the full capacity of the northwater treatment plant when that expansion is complete additionally as we went through our budget prioritization project process we knew that we could not financially do everything that we need to do and so we prioritized our Capital plan by keeping in IT projects that are already ongoing like the North Water Treatment Plant keeping water line Replacements aligned with streets reconstruction minimizes disruption to the community and those critical master plan projects and the projects that support resiliency in the face of water dis Supply disruptions are contained in the budget that these rates will support yet we're still deferring over $400 million in projects which will add to a backlog of needed infrastructure improvements as we walk through in detail at the council Retreat our checkbook is overdrawn this is not due to any shortcoming of leadership or planning but is an opportunity to continue courageously leading and looking forward as we foresee these challenges and rise to meet them I will present to you the the two water options water rate options that we have and the public work Advisory Board recommendations on how to proceed I'm going to provide to you some of the upsides and the downsides that we have identified for each of these options the first option is titled the cash funded option because we actually intend to collect and pay cash for all of our 5-year plan expenses this requires an immediate average residential water bill increase of $44 in the spring some of the upsides of this is that it does not we do not have an increase planned next year following this this increase we would not incur any new debt and we would have ongoing capacity of about $6 million for those one-time projects in our operating fund and then about $73 million for our repair and replacement beginning in fiscal year 2029 again that average residential monthly water bill is about $34 and under this option it would increase to $78 in April the second option we have is called the cash Bond gradual funded option this option does have phasing incorporated into it over a couple of years but I would like to remind Council that next year Wastewater and environmental compliance are on that 2-year cycle for review so there is a likely a likely potential overlap of increases that could happen there under this option we would need to bond for $80 million of our CIP within the 5-year plan this would require an immediate average residential water bill increase of $17 followed by an additional increase of $13 in 2025 and at least least another $16 in 2026 it would add $80 million of new debt and $43 million of anticipated uh interest paid over the 20-year Bond life cycle it is a phased increase which does allow customers to plan for future cost increases it allows an acceptable oper operating capacity of $5 million for onetime CIP in the operating budget and then an ongoing repair and replacement fund capacity of $66 million in fiscal year 2029 and again that $34 bill becomes 51 next th this coming April then $64 the following year and then 80 in 2026 so let's review the Public Works advisory board recommendations and their thought process that went into developing their recommendation they developed these five key criteria that they used to guide their decision- making the customer impact in the immediate near-term sense the customer impact over the five years of the rate plan does the plan adequately fund the repair and replacement fund does it adequately fund the operating budget and lastly what is the total cost of utility ownership for our customers those are our residents and businesses that pay these rates after identifying these five key decision-making criteria they then went through an exercise where they individually um commented on the benefits and the drawbacks of each option and those are noted at the bottom of the slide but they're really lumped into two categories on the on the on the benefits with which are under the cash funded option no new debt and that it builds capacity to deal with the needs of the water fund they also identified a few drawbacks as well this option created the biggest initial impact and that therefore could create difficulty in the immediate near term for customers to pay then they looked at the same issues for the gradual option it had several advantages as well which get categorized into this provides a smooth ramp up into the new rates it still built sufficient capacity to deal with the water needs and it required a smaller Bond than a different rate option which Council has identified is no longer under consideration there were drawbacks that they identified lumped into that it's still added debt and that in three years this plan would actually result in a higher percentage difference than the other option after they went through all of that they went and they rated each of these options on all five of the categories that they identified to come to a selected option the numbers aren't really important the main the main identifier here is that they were essentially tied between these two and a few weeks ago you all were as well um they discussed the merits and the viability of these two options after becoming tied so then they they thought okay let's consider how to provide for the needs of the community while minimizing the impact to the residents then they settled on a recommendation to you which they provided in that letter that we delivered to you at the retreat last month but the main ideas of this of their recommendations to you are that the cost pressures mandate additional investment in both of these funds the capital plan is essential to the needs of the community in the water operations then they recommended that the council tonight adopt the notice of intent considering the cash Bond gradual option for water and the solid waste and recycling increase as presented and then they added on one other uh recommendation which is to have staff research Financial Support options for customers who need assistance so I've put together this handy comparison slide of the two options and we'll come back to it in a moment while Council contemplates the options that we have under consideration I want to walk you and the public through the next steps in the planned Outreach for the community so that we're all on the same page statutorily we are required to do the things that are um underlined on this slide and in that time frame so tonight the notice of intent in in about two and a half months in February um we will come back for Council to adopt the selected rate options at that time and then the rates would go into effect on April 1st in between now and February we've got some work to do and we're going to do some Outreach to the community so that our customers are aware of these upcoming changes the main one to identify is January 24th we will be holding an open house here at municipal building number one so that our customers can all be become familiar with what the council has selected we know that this is a higher than usual impact to our customers and we will want to be sure to notify them of the needs and the timing of this process so we typically did um utilize our digital Outreach team because of its low cost and its high reach but we've heard from the public works Advisory Board and from this body that more traditional Outreach might be a good thing to do as well adding the traditional Outreach is much more costly and therefore is the reason for the contingency request tonight so with that um mayor and councel the request tonight is to approve the notice of intent and and the contingency request and we have one big question for you which is which water option does council prefer to select thank you Eric it's a very heavy topic staff generally likes to come to us at this point with one option and we asked you to come with both options so that we could have this discussion in a very public manner so that everybody could hear it but all the discussions about water have led to a bathroom break need so I would like to take a 5 minute break and give you a break to sit down and then we will come back and come back to this topic okay thank you we'll adjourn for five minutes or just take a five minute break you per m wish I soe got yeah so because it's not sa that way it's just so she go see all these other and look this one like I think I told I was like take both hands your hair my wish and e thank you I'll bring this meeing back to order um thank you for indulging us for a couple minutes to take a break it gets it gets hard to sit up here for so long and it is a little chilly in here so people are feeling that too um Eric thank you does anybody have any questions or comments for Eric at this time questions vice mayor um not for Eric and particular I'm just trying to figure out how we get to the next step so I don't know if he had something else he needed just wants I think he just wants guidance from us he wants us to pick one of the two options so that the staff knows how to move forward with this and then to do the things that were requested up there which is to adopt the notice of intent and approve the contingency this evening um I would suggest doing them as different motions just to make sure that it's clear for the record so we'll bring it back to us for discussion and then if we need Eric we'll call you back thank you thanks Eric so bring it back here to the dis I see um a couple microphones on council member Buckley did you have a comment or question um if I'm allowed to talk we can discuss now we can discuss now yes well I I actually just had a couple where did he go oh I didn't know I didn't know you want Eric sorry Eric back up there he is I'm sorry I need my steps today anyway it's okay let get holiday hustle right yes that's right hi there what an easy presentation right yeah he's k um I you know I just had a couple of questions if I can now get um My Little notes in order luckily when I was when I went through the the sheets that you sent I I kind of had written a lot of them out but on option one um and I'm favoring the gradual just so you know but I'd just like to ask this question um we it talks about you know what what the increase is and and the that there'll be no debt when we're increasing if if we went with that option there's we haven't incurred any debt so we're getting all this income in we what you haven't talked about is the interest that might be occurring you know what because this money is going to sit there until it's needed and have you put together anything on the amount of of interest because my thoughts there are I mean the option one obviously saves the town a lot of money I mean just in what I'm looking at but my thoughts are if if there's going to be a large amount of Interest acred then perhaps that could be offset the number of the increase so the increase wouldn't be as large thank you uh mayor council member Buckley um the question regarding this essentially a cash flow question is are we collecting a lot of money upfront that's going to sit around in the bank and and acrew interest the answer is is is mostly no we're collecting a lot of money upfront to pay for projects immediately the the primary one being the northwater treatment plant which is $677 million um not all of it is funded by utility rates but those checks are due over the next 3 years as the money is coming in so the rate the cash funded option is designed so that we have the money coming in at the the precise year that we need it yeah um on on the the well the wells that are coming in that's using some of this what percentage of that is already prepared for we should have had something in the budget and I know it was on I believe A Five-Year Plan maybe or 10year plan but we have accelerated that um what is the what is the the plan for I mean is there do is there something in the budget what's the number in the budget that we already have because all of this would not be going just to that but what percentage we we did have one new well programmed in the operating Fund in The Five-Year Plan and a typical well is about $8 million so we had about $8 million planned in the 5-year plan but we're bringing forth forward the the full million don't have that okay okay well well then that makes sense um you know obviously I'm GNA be looking at this all of us are going to be looking at this and I have some other questions but I I'm favoring I I like option one I like it because of the amount of money it saves there's no the no extra debt for the town but what you know and I I understand that all of us you know the town of Gilbert has uh massive increases in inflation and numbers and and it's kind of mindboggling when you're you're in there as you as you can see but um on on option two we're we're all talking about and and this I want to bring this up but we're all talking about the um increases that the town has and the inflation that the town has and everything but what we're not talking about and thinking about or something we probably are some people probably are but where I'm at is we're not the only ones I mean the our residents we've got residents that are really struggling out there because they're under the same cost of inflation and a lot of them are not getting raises anymore but yet the inflation the numbers and just like the water is going to go up and then SRP is going to be doing a huge increase again and um so I I just want the residents to know that we're thinking about them as well because we have to look at what the cost the town has but and I I think these numbers even on option two are are a bit High I understand being here I understand why we need to do this and why we're going to probably have to do this but I think it's important and and I appreciate that that you've put a contingency in here to get this out because I do feel that if the residents are you know have the knowledge of what this is for and all the extremes and the cost and everything that we'll have a much better uh reaction from all of this so that's kind of about it for now thank you thank you council member Anderson uh thanks Eric um this may not be a question for you but it a table that you showed us at The Retreat kind of spark this question I'm I'm still asking for and would like to get if it's all possible the total impact to the the the normal resident all of the fees all of the everything that is going to increase what that total amount on a monthly basis I've heard tonight um that their mortgage could increase by 300 some odd dollars a month with the impact fees or talk talking about a typical resident we're talking about an extra I don't know 50 some odd to 60 some odd dollars a month for just the the water and trash we haven't talked about waste water and environmental services yet but and then we don't know what uh property tax may be become I'm sure it's probably going to stay the same rate but it still increases by the value of the home it increases so the taxes so I'm still going to be asking for and Kelly I I'll probably talk to you some more about this is I'd still like to get a summary of what is the total impact of everything we're talking about to the typical resident yeah um I know we are we're working on some of the the compilations of that that data for you which um some of those those fees and and that information will be shared next month at the council Workshop Workshop um uh but council member and we we have 270 lines of service across the town and we offer them to Residents to businesses um to all different customer types and it's very difficult for us to know all at once when any of those fees need to be increased and the end result of which customer that that that fee will be actually the bill will be footed by um but what we do know is that we have to deal with the water and um the trash service tonight um we have looked into these fees extensively and we know that they do provide the level of service that the community expects not more and thankfully not less thank you it's a tough one council member Anderson counc Bon Giani um Eric I I I recall I believe representative Hendricks was able to bring some money in for to Gilbert for Wells has that been included in all this yes yes it has okay thank you council member torguson the under the first proposal it's $44 a month increase when if with all things staying the same when would that stop when would the amount of money necessary to offset this project stop we currently do not have plans to to to lower the rates all right so in five years it would just keep collecting money at 44 a month MH 7 years it would keep doing it 20 years it would keep we review the rates every other year and so we'll come back and look at them again in two years to see if they're still accurate and if changes need to be made up or down this Council has in the past reduced rates when we no longer needed additional revenue and then so if we were to do the other option which involves borrowing money that that goes on for 20 years no matter what right so that would would not all things staying the same that wouldn't go away for 20 years we have in some cases paid back Bond paid off bonds early when we had additional Revenue but that would be the plan would be a 20-year Bond council member Kowski thank you for the information um this evening and for the insightful discussion on the dis tonight I support the cash Bond gradual option for a couple of reasons normally we'd want to try to avoid debt at all costs but in this circumstance with the northwater treatment plant which is the largest Capital Improvement project uh I believe in the state right now for a water project um happening that is a I think is a special circumstance for a project and it's going to serve the community for 50 years or more so I have a hard time kind of increasing the rates for like all in one all at once when when that really should be probably spread out and have the bond it is it merits bonding additionally as as you mentioned Eric with the well projects being traditionally or planned to be over 10 years and we accelerated all of those due to the potential and anticipated shortage of the cap water I think those two project specifically are what provide Merit for that bonding additionally with the um impact to Residents the gradual option I believe provides additional time for our residents to not only plan for the additional expense but also to plan and Implement any water reduction measures that they want to implement in their household and so I I I'll be supporting that option this evening vice mayor thank you mayor um thanks Eric for all the information um I just want to reiterate that when we show $78 and $51 in 2024 that's the new bill not the increase in the bill because I think that's very easy to get confused so I I appreciate the the slide that you showed that it was you know from 34 to a new bill um because that does make it a little less impactful or um for many people but um I agree with council member Kowski um if I'm understanding correctly the bonding this is a cash and bond so this isn't going out for everything with the bond so the the the dollars that you're showing only a portion of that will be paying back the bond not the entire increase is that correct uh mayor council member Toki that is is correct okay all right um my nobody likes to take on debt I would say that Gilbert has uh an excellent reputation and financial policy position that we do everything we can to pay that debt down early and reduce those interest costs and I I am assured that that will happen again um I I really have concerns for the residents and the businesses um we we were just looking at residential rates but it impacts business as well that in order to phase that increase in is easier for us all to accept and um and I appreciate all the work of the Public Works Advisory Board and um will stand behind their recommendation thank you thank you vice mayor um I don't like taking on debt and I know that we're going to have to review again in two years because the council decided a couple of years ago instead of trying to hit all of this at one time when needed that we would do it in a cycle right and so we had an increase two years ago and now we're looking at another increase now we're probably going to be facing another increase for other portions of our town of Gilbert Bill and to take on 43 million ion dollar extra in debt that we have to pay back over that time just doesn't sit well with me and and that was a reason that we discussed it at the retreat and that we wanted to bring the discussion here tonight so that the public could hear what we're facing we have some difficult issues that the town needs to do when I first saw a presentation for the northwater treatment plant I think the bill was around $430 million and I nearly had a heart attack when I saw $430 million and now we're talking $677 million that is a huge increase in just the past four or five years for one project and it's a project that yes Will Will Survive you know Will Survive decades out in the community to provide fresh water the one thing that people probably don't understand that you sort of said in your presentation but we don't talk about enough is the quality of water coming into our community has changed over the last couple of decades and we have to do more as a community to make sure that that water is up to the level that is needed to provide to our residents and they think it just comes out of the tap and it's beautiful right well you might not like the smell or The Taste it's gobert water but um that's another story um it is it is costing us more to make sure that that water is to the levels that it needs to be and in the time that we're trying to meet all the qualifications that we need to make the federal government's also increasing those qualifications so now you have to meet other needs for the water to be qualified to be acceptable to our residents so we're constantly facing new issues all the time as as a community and how to how to run this business the town of Gilbert is a business within your community and we have to find ways to make sure that we're providing the services that we have always provided to our residents and the service that they expect from the town of Gilbert our residents expect a certain level they always have and they love certain aspects of our community we were kind of joking up here that the the trash you mentioned the increasing garbage that we've had over the last couple of years that we've seen really since Co during Co it was immense and now it has just continued we're I think buying more online there's more boxes coming to your home there's more packaging coming to your home there's more stuff that you're putting out into your trash that has to go someplace it has to be moved someplace it has to be paid for by the town in order to dispose of all of that so we're all living in a very different time than we were even just a few years ago um pre-co it was one thing shopping online was one thing now it's completely different than it was then I have lots of boxes coming to my house all the time um I will be supporting the cash funded version of this I know it's a hard hit for everybody you can go out onto the town of Gilbert's website and use the calculator I just pulled mine up right now my home will go from $21.13 to $282 3 for the water and so to look at this potential increase I would rather face it at one time and I know everybody else is everything's increasing cons member Buckley mentioned it everything's increasing gas is high food is high groceries are high and we're all facing the same thing we are residents of the community we're all facing the same thing as we're making this decision for our residents too council member Targus you turned your microphone on yeah just a question if you Bond it you get $80 million very quickly I assume or access to it yes right and the rate is 4 and a half% on that depends that's about I think that's what she told me in that range would there be a savings to pulling that in now and paying for things as quickly as possible because of the increase in construction is there an offset there that that could benefit borrowing the money basically like when you get a house at a super low interest rate it's not worth refinancing because the money's worth less tomorrow right I um council member torguson kind of the idea of Arbitrage um as far as timing a project that we know will escalate in in cost in the future at a higher rate than the interest that we're paying on it we will under this this gradual Bond option have the ability to pay cash for a certain amount of time until we have to bond and we will We generally do the bond at the last moment and there's multiple reasons for that timing the the interest rates as best as possible also our ability to actually execute these projects if we could them all all next year we would be happy in in in the water side we just know that we can't tear up the entire town all at once we we can only do them over a 5year period just with our with our ability so there's not really the option to to take out the money early and accelerate projects even more council member Koski um I'm ready to make a motion to direct staff to publish the notice of intention to increase rates and fees for water and solid waste and recycling rates and fees with the um cash Bond gradual option I have a motion by council member Koski do I have a second I'll second we have a second by vice mayor tilki please vote motion passes four to three gu we're moving forward with a cash Bond option next we would need a motion for the contingency um I'll make a motion to set the public hearing date for February 6 2024 I'll second I was trying to get to the thing that I know the staff needs the most which is the contingency um we have a motion by council member Kowski to set the meeting date for the hearing date for February 6 2024 we have a second by Council vice mayor tilki please vote motion passes 70 one more make a motion for the contingency request for $70,000 for traditional media and print educational campaign Outreach activities thank you I have a motion by council member Koski can I have a second I'll second seconded by vice mayor Tikki please vote motion passes 70 well thank you everyone I know that was a tough topic and um we have a decision to move forward we will now move on to our next administrative item which is is um as mentioned above as mentioned before the review and discussion of possible action for a final report vice mayor thank you mayor um I'd like to just um start with the process that we'll be using tonight since this is a little different than normal um agenda items um we will um I'll review the um the background of how we got here um the mayor will then um have an opportunity to speak and then we'll ask a motion U from the council um and just to be noted that the mayor does not vote on this particular action item um background for this um issue is September 19th 2023 Council voted to have a second investigation into the original ethics complaint against mayor Peterson regarding the removal of citizens from a meeting should be noted that this action was an exception due to questions about whether all parties were interviewed during the original investigation and should not be seen as a precedent for future claims we have a new process in place that clearly outlines steps that will be taken the complaint we are discussing this evening falls under the previous policy the investigation took place and a the report received from the investigator states there is no evidence of violations of the eth ethics policy sections identified it should be noted that investigations into violating the ethics policy is just that it is not a typical criminal or civil investigation the attorney is charged with identifying if any action taken is unethical under the official code we've learned over the past few years that is very rare that an action taken by a member of the council unless leaning towards criminal would be declared unethical due to the inability to prove the intent of the person's action which is why under our new policy we require the complaintant to meet with the council member and a mediator to try to resolve any misunderstandings prior to a long and expensive investigation this evening there are several actions that could be taken the first is you take no action the complaint will be deemed dismissed with prejudice which means there's no no no motion and that one was not seconded the second option is ad St the report's finding that the mayor's conduct did not constitute an Ethics violation of the former code with no further action which is required uh following a motion in a second third option is to accept receipt of the report as presented but consider additional Council action following a motion in a second which means the council is only accepting the report but not adopting the findings finally we the option is to reject the report's findings and that conduct did not that let me restate that reject the report's finding that conduct did not constitute an Ethics violation of the former code which means the council believes that there was an ethical violation it may direct action penalties following a motion in a second so that's what's before us I believe everybody has received a a copy of the report and so mayor at this point I'll just ask if you have any comments you'd like to share prior to moving forward I I was able to comment at the end after everyone else commented last time is everybody else going to comment and then I don't get a final say I'll ask the council if they're prepared to do that is that fine I was able to comment after everybody spoke last time okay let me I just got to note it so I keep us on track I just think that it we're never consistent with what we do I think we need some consistency right that that's my goal that is my goal so I'm just trying to figure out okay so here thank you all right thank you anything at this point nothing all right council members are there any comments that you would like to make at this point council member Bon gani yep you know with everything we've heard um tonight we have a lot of hard work ahead to accomplish and a lot of decisions to make and it's time that all politics stops and responsibility begins sometimes you have to put your foot down and make a statement a few weeks ago council member torguson and I went to Atlanta to the league of cities um conference we met with 2500 other cities and towns and one thing we took away from that conference was that Gilbert is years ahead of other cities that we spoke to as far as infrastructure and services quality of services the reason for that is because we've had 103 years of council policy and directives follow through follow through by 103 years of great town managers executive teams and 103 years of devoted staff uh it is that c it is that creates a that is what creates a great town and I and I'm proud to served this community with that as a backdrop I want to talk about a decision that this Council made late September the council voted four to one to reopen an ethnic complaint against Mar Peterson from several Gilbert citizens because they felt it was an unfair investigation because they weren't actively part of it the majority of council requested that a new investigation be performed and that's what we expected to happen the citizens involved specifically requested that council members Tuson Anderson and myself be interviewed by the investigator we weren't again Witnesses weren't questioned in the final report the investigator was quoted as saying and I quote I determine that these interviews of Anderson torguson and myself were not going to be fruitful how can an investigator make a conclusion that interviewing us would not have been fruitful without interviewing us to determine whether our interview would be fruitful the only thing that isn't fruitful was the logic within that logic fruitful For Whom the town the citizens the mayor I would have simply settled for it being fruitful for the sake of doing a thorough investigation when when it was a decision whether or not to interview myself C council member Anderson and Tuson made was it made before or after the interview with the mayor either way it doesn't look good was his interview with the mayor so fruitful that he determined that interviewing us would not be fruitful we as a council gave the directive that we wanted an investigation to be completed and what we received instead in my opinion was an opinion of whether an investigation should be performed every single council member sitting up here tonight should be upset that our directive was ignored and not followed up by the investigator now not every Council decision has been 100% correct over the H past 103 years but I guarantee that every directive was followed up on policies and directives aren't multiple choice or suggestions that the foundation of good practice in government I ask that every council member tonight vote Yes to accept the the finding of the report but votee no on the findings of the report itself fellow council members I want every majority vote that we cast be executed every time I want our votes to count and be respected regardless of the issue I feel if we accept the findings of this report tonight we would be approving to ignore the very thing we asked that when we pass the vote a fair in thorough investigation if we vote to accept the findings of this report tonight we'll be sending a message that our vote and our directives don't matter because we all know this investigation was not thorough and it isn't just our vote it's the voice of every citizen in the great town of Gilbert who depends on the who depend on the truth even if it makes us look bad during our mediation the mayor gave me some great ad advice she told me that when I lean back in my chair I on the dis I disappear I disappear to people watching me on TV and I disappear to all of you in the chamber what I asked tonight is that we take the feedback that was offered to me don't lean back in your chair tonight and disappear when the council gives Direction it matters and it must happen do please do not accept the finding of this report thank you thank you council member any other comments council member Tason we did ask for an investigation is hilariously indefensible woefully uncomplete also though these investigations don't really bear any fruit uh as was said in one point it's the the mindset of the person being investigated can you prove how they felt what they were thinking uh that kind of thing we've spent a lot of money uh going through these uh the the the tiny little tax break we were able to provide we spent more than that over the last couple years on these things uh the actual complaint may actually be more of a uh a First Amendment complaint uh more of something Beyond just that ethics cuz I think uh the way we've defined ethics and and what's meant by it and how it's looked at by an attorney it's not the same thing I I don't want to spend more money going through fruitless investigations there's no need to uh it's it's a waste of money it's a waste of time it's a waste of effort and it Bears no fruit uh I don't agree with a conclusion based on a lack of Investigation if there if I felt everything was done I can easily accept uh someone's interpretation of Ethics or whether it should have even been one but it wasn't done and I I personally don't ever want to waste a waste money for this town again it's just it was wasteful and incomplete and a poor job it it stuns me that we're even talking about it but I don't want to somehow make this mess continue it been just wrong from the get-go as far as the uh how it was handled by the first investigator or the second so I don't want to adopt the finance and I don't want to pay for another thank you me council member any other comments from the council council member Anderson I'll just basically say that pretty much the same things that council member Tuson has just mentioned I I just want to get this over with whatever it takes to get it over with I do think the investigation was U somewhat questionable um but I am more concerned about the possibility of this being elevated to a First Amendment um challenge in the courts we've already seen what challenges in the First Amendment have done to Gilbert rising to the Supreme Court I don't want to see something like that happen again so I'm more concerned about that and I just want to get this out of the way U if that means we don't accept the findings but we accept the report that's fine but I want to get this completed I I I look forward to anything in the future going going through our new process I think it'll be a much more fair process and we'll get to the uh um get to the to the to what we want to find in um transparency with the new process thank you vice mayor thank you council member any other comments council member Buckley I I just have a question if you could if we could explain in depth because this obviously it's the first time something's gone this far uh if we do the motion that Chuck is recommending that we accept can you say what your motion was again um accept the report but do not accept the findings of the report right so if if we were to vote for that this is over correct because I I mean I agree I don't think the findings I think they could have been better uh but we need this to be over and uh and we and we did give Mr r a chance to have another hearing and have another uh investigation and I mean this could go on and on and on if if we do that and and I think that uh we we did give him that opportunity to have another hearing and it's unfortunate that it came out the way it did but I agree that it this needs to be over and I I don't want to see the town spend more money either thank you council member I I do believe we can include that in a motion if if we go towards accepting the receipt of the report we could as we did with the other ethics complaint note that that was the end we were not going to reopen it so I believe we can do that as part of the motion any other comments council member I I just want to clarify for council member Buckley that I'm what I'm saying is that um it had nothing to do with the outcome of the investigation I'm saying that I don't believe a proper investigation was done that's why I don't want to accept the findings of the investigation I any other comments um fine um thank you then I'll make some comments before we turn it over to the mayor um first and foremost I want the residents businesses and employees to know that it is the priority of this Council to stay focused on finding best solutions to the many challenges facing our community due to significant cost escalations and aging community and approaching buildout which will eliminate growth funds to help us keep in front of the infrastructure and safety needs of this community that's where we need to be keeping our eye on the ball and these priorities continue to be the top of mind for all of us continuing to address the mayor's pattern of behavior is a distraction and cannot continue as I mentioned earlier the burden of proof regarding intent in this ethics complaint has fallen short regarding the reference sections of our former ethics policy it is within the rights of the mayor who is acting as chair to ask for people to be removed from chambers however having the right to do it and doing the right thing are two separate issues there's no definitive proof one way or the other as to how disruptive members of the audience had become from my vantage point of being online during that meeting so I can only speak for myself in that aspect what I will say is that the level of unrest and angry residents filling the temporary council chambers in the the Public Safety Training Facility had escalated each meeting over several months which resulted in additional security measures being put in place based on that escalation I can imagine the mayor became overwhelmed and acted poorly in a moment of frustration and a anger the bottom line is that removing people from the council chambers should always be a last resort we learn this through our civil discourse training and through our Arizona leag of cities training we also learn that it falls squarely on the shoulders of the sitting mayor to regain control and establish the quum should a meeting get out of order sadly the mayor continues to display inconsistencies in the management of meetings during stressful periods which has brought us to this moment this is not a one-off situation rather a series of missteps that have come at a high cost to our community's reputation I'm saddened that she doesn't acknowledge or recognize that she could or should have handled these situations differently and that ladies and gentlemen to me is an unfortunate lack of leadership in this community deserves better I've worked this past year with fellow council members and staff to bring forward new policies and procedures to ensure we don't have this happen again but even with those policies in place the responsibility will still fall to the mayor to keep decorum and Rise by the noise and emotion to ensure the business of the town is conducted in a fair manner it is because of her actions and lack of willingness to accept assistance and advice regarding these leadership skills that leads me to believe that the mayor requires additional training to continue in the role of chairing these uh Council meetings um with that I um will stop and may ask you if you have any comments before we go back into what action can be taken this evening well as I've said before I honor the process and welcome the findings and like the rest of the council have no hand in this investigation process and I'm concerned with the appearance of penalizing Me by not accepting by not being accepting due to the concerns about the investigation process that I had nothing to do with um it saddens me to see that this is continuing in the community it um I've Loved this community and I've served this community honorably for many years and will continue to do so thank you mayor um so the actions that can be taken this evening I want to go over them one more time um take no action which means there is not a motion or a second and by doing so the complaint will be deemed dismissed with pre Prejudice secondly adopt the reports finding that the mayor's conduct did not constitute an Ethics violation of the former code with no further action which will need a motion in a second third option is to accept the receipt of the report as presented and consider additional Council action which requires a motion in a second Again by accepting the receipt of the report it will mean that the council is only accepting the report but not adopting the findings lastly reject the report's finding that conduct did not constitute an Ethics violation of the former code which means the council believes that there was an ethical violation it may direct action penalties following a motion in a second um I wanted to just restate a few points that were made um regarding um concerns about the investigation as a whole and um that there uh council member banani that you were um open to accepting the report but not the findings as as that correct correct okay thank you um before um I make a motion I just want to make sure everybody was heard and felt that they provided input before I make the motion okay so based on the comments made this evening and the pattern of behavior displayed these past three years I'd like to make a motion to accept receipt of the report as presented with a note while some witnesses were not interviewed this complaint will not be reopen this is we're done with this complaint at this point secondly um ask the council to uh approve the mayor to require the mayor to complete the council and open open meeting law training presented by the Arizona League of cities in addition I would like to place on the agenda on December 12th uh a report of what if the uh training has been completed and if there are any additional penalties that may need to be considered should the mayor refuse or if there is any other penalties that the the um Council felt um needed to be made so I'm going to ask for a second and then I'd like to explain a few things I'll second that thank you so we have a a a motion in a second um before we vote I I just want to note that this action does not require the mayor to leave the Das during Council meetings or Rel relinquish her chair role um however we do have the power to expel any member on the Das should it be deemed appropriate the lack of skills to effectively chair meetings during stressful times does not raise to the level of exposion however if the mayor chose to refuse the training it may be something we'd have to consider in the future um upon approval by the the council staff would work to schedule a training session this training session is open to all members of the council as well and I encourage us all to attend to ensure that any mayor that sits here finds himself in a situation in a stressful situation that the mayor was in at that time that we are able to help that mayor get through that so that we don't it even though it falls on the shoulders of the mayor we should be trained to be able to help in that that situation should we need to um so um with that unless there's any comments that to say I didn't state that I just have a follow-up question to what you just were recommending that open meeting law training between now and December 12th is that what you're saying through the league of Arizona cities and towns I just want to be clear that what you're voting on and that what I would be agreeing to um I can't find any training for the league of Arizona cities in they they will conduct a training separate and so um after the motion we would um direct staff to get that training on your schedule the the the item on December 12th is defi is a report on what the status is if you have training scheduled I think that would be taken into that's another because I'm traveling next week so yeah I know so um I know that was a little out of order but this is an important situation and I think it was fine that we um communicated so um so we have a motion on the floor by myself seconded by um council member Bon javani to accept the receipt of the report as presented with a note that while some witnesses were not interviewed this um this um complaint will not be reopened through a council action require the mayor to complete the council and open meeting law training presented by the Arizona League of cities and add uh to the agenda on December 12th a status of that training and where we are in that and if there was a need to present any other penalties at that time so that we make sure that um by open meeting law that we have um actually presented that correctly um so with that um we'll vote um the motion passes with a 60 vote um I just want to make sure that uh the direction that uh staff understands the direction at this point Patrick would you have your staff organize a training session and send out the uh calendar invite to all council members took yes and the goal would be to have a a date on the schu before the the um December 12th not that the training had to be completed is that okay okay clarification yes it wouldn't be fair it is it wouldn't be fair and you're right and thank you I was um I was going to mention that at the end mayor but I appreciate you bringing that up and um Chell um that you would add that um that um agenda item to make sure that we can have a full discussion and and follow all the open meeting laws yes vice mayor okay um mayor with that I think we're done thank you moving on we have um no policy items and our future meetings will be December 12th we only have one meeting in December so that'll be the only meeting for next month and right now we'll go to Communications report from the town manager thank you mayor members of the council couple announcements today first I'd like to recognize our information technology department who was a winner in the 2022 digital city city survey by the center for digital government and is a 2023 top 100 techn technology team Award winner then I'd also like to congratulate our former deputy chief technology officer Eugene Mahia who is now in his new role as our chief AI strategy and transformation officer we've already we uh have a policy under um review right now that is uh soon to be implemented and we have several of our technology partners with AI High embedded technologies that we will be using in the organization soon and we look forward to all the benefits this new technology is going to offer to our community and to our service lines uh so we congratulate Eugene me Kia once again and looking forward to his leadership in that area thank you mayor thanks Patrick congratulations to Eugene next we have report from Council any members of council have something to report council member torguson hey this evening uh Council heard a study session about the Heritage district wayfinding and place marketing effort which was hours ago most of you probably weren't here uh if any members of the public missed today's study session or the Redevelopment commission study session a final study session will be held next Wednesday December 6th at 5:00 p.m. at the Planning Commission and as a reminder the town of Gilbert in conjunction with the Gilbert Chamber of Commerce will be hosting a heritage's district meetup on Thursday December 7th from 1:30 to 3:00 p.m. uh the infant will feature a walking tour of the Heritage District moderated by representatives from Gilbert's office of Economic Development and you can expect to learn more about our current and future projects within the district including infrastructure projects higher education private developments and the activation of public spaces for retail art and culture it's a free event you can sign up via the chamber website at www.gilbertschools.net [Music] uh last week to Atlanta while some things I I was a Gass at the one thing I really walked away from was how far ahead and truly efficient our staff is doing their job I'm listening to people that are far behind us and not uh not as focused on the ball such as the water projects we've talked about Etc and uh my belief that we are uh doing things as best as can be done was reinforced by watching the problems other people were experiencing and it was a great learning session in that respect thanks vice mayor Tikki mayor um I was presented a card for your birthday and I believe you have um flowers and maybe some goodies in the back so happy birthday I hope you had a great day thank you um I did have a great day it was a couple of days ago next any other comments yeah I try to reiterate what um council member tenson said um it was it was night and day for us in that uh in that conference hearing other cities and other towns that have been maybe around for a lot longer than us but you know didn't have a clue in some of the problems that that we've already solved so it was good to see and I knew we had a great staff and a great um executive team here but it it really just enforced that going to that meeting being around 20 2,500 other cities and towns with issues that we've already solved and I really believe in the city of the future and the plan that we have here from going to that so thank you any other comments seeing none I'll move on to report from the mayor so I mentioned that I would be traveling next week I will be headed to Washington DC for Carl Harbor day it's the 82nd anniversary of that fateful day within our country and there will be a wreath laying ceremony at the Navy Memorial um the keynote speaker will be Nikki Stratton who is the sponsor for the USS Arizona submarine and um this will be at no cost to the town because I will be paying for this trip out of my own pocket um there are a lot of holiday events coming up in Gilbert I was going to try and list them all but it's easier just to go to Gil gilbertaz.gov scroll down to the latest news and there's a there's a link for celebrate the holidays with these Gilbert events they include ride with Santa and Gilbert Fire Jingle Bell Express Blue Line Of Love Holiday Drive with Gilbert PD photos with Santa with Gilbert PD Santa Paw pictures we all love our pets here in Gilbert um hope everybody had a wonderful Thanksgiving and our Gilbert Days parade we got about 10 minutes of pouring rain about 15 minutes before the parade started so we were all a little drenched but we had a wonderful time out there celebrating with our residents meeting adjourned