Eloy City Council Meeting - May 27, 2025

The Eloy City Council met on Tuesday, May 27, 2025, at 6:00 PM (the agenda listed 5:15 PM but the meeting began at 6:00 PM) in the Eloy City Council Chambers. The meeting included presentations on capital improvement projects and solid waste service transition, consent agenda approvals, and resolutions for rate increase notices. All votes were unanimous unless otherwise noted.

Consent Calendar

• Items A, B, C Approved Unanimously: The council approved the minutes of the April 28, 2025 Work Session and May 19, 2025 Budget Work Session (Item A); the reappointment of Judge Roger Valdez as City Magistrate for a two-year term starting July 1, 2025, with an annual salary of $127,000 plus benefits, vehicle, and communication stipends (Item B); and an Intergovernmental Agreement with the Town of Florence for Eloy to provide part-time Magistrate Court services (Item C).
• Item D (Pump Purchase) Approved Unanimously (after being pulled for discussion): The council approved using a cooperative purchasing contract from the City of Chandler with Phoenix Pumps, Inc. to purchase a new pump for the Sunland Gin Lift Station and repair an existing pump at the Toltec Lift Station, at a total cost not to exceed $75,000. Public Works Director Matt Rencher clarified the new pump is a like-for-like replacement and that the cost to repair the Toltec pump was nearly as high as a new pump because the Toltec pump is larger.

Public Comments & Testimony

• No public comments were made during the meeting.

Reports and Announcements

• Mayor’s Announcements: Mayor Sutton reported on a school lockdown incident that was resolved safely, commended school staff and first responders, and summarized his attendance at several regional meetings and events, including his radio debut on KUERQ 106.1 FM.
• Council Members’ Announcements: Council members praised the Memorial Day ceremony at the Eloy Cemetery, highlighted the Sparrow Campaign’s $2,697.28 check to the 100 Club for first responder support, and promoted upcoming community events (Steps of Love on Sept. 20, Heroes Against Hunger 5K on Oct. 11, and Hunger Awareness Day on Nov. 20).
• City Manager’s Announcements: City Manager David Malewitz noted that Waste Connections’ contract ends May 30, with brown cans being collected May 27-28; WM (formerly Waste Management) service begins June 1, with billing not reflecting new rates until August. He also announced police corporal promotions and the community yard sale on June 7.
• Veregy Presentation (Phase II Capital Projects): Edward Farrell and Dick Williams from Veregy presented a $12.4 million package of improvements including a new screening machine (already ordered, arriving in June), a new sewer line to support residential development, installation of a belt filter press, renovation of the blue water tank, and 70 kW of solar panels. The project is funded by $3.8 million in ARPA funds, $360,000 from the Inflation Reduction Act, and city general funds. The 30-year net positive cash flow is projected at $14 million. Council asked about the broken screen (rock damage, broken for 4 months), sand in the blue tank (from well issues), and confirmation that federal funds are already in the city’s bank account. The contract is expected to come before council on June 9, 2025.
• WM (Waste Management) Presentation: Jennifer Wargo and the WM team presented the transition plan for solid waste services. Carts have been delivered, informational brochures and bill inserts sent, and a dedicated website created. WM will service Eloy from a new Casa Grande facility. Council questions addressed availability of smaller carts for handicapped residents (WM will swap them), pickup on both sides of the street in some neighborhoods (WM agreed to investigate), handling of forgotten brown cans (residents can call the city at 520-466-3082), and dust control at the brown can drop-off site (city will coordinate with Waste Connections).

Discussion Items

• Business Item A – Encroachment Permit for Kitt Solar Project: The council discussed and approved an encroachment permit agreement with 301AK 8ME LLC for underground electrical infrastructure in city rights-of-way near Eleven Mile Corner and Milligan Roads. City Attorney Stephen Cooper clarified the permit is a license to use public property, contingent on project completion; the city will charge a fee once improvements are installed. Councilmember Garcia voted no; the vote passed 6-1.
• Business Item B – Resolution 25-1615 (Appointment of CFO): Unanimously approved. The resolution appoints Finance Director Brian Wright as the authorized agent to submit the Annual Expenditure Limitation Report to the Arizona Auditor General for FY 2025-2026, a routine housekeeping action.
• Business Item C – Resolution 25-1617 (Water Rate Increase Notice): Unanimously approved. This resolution starts the 60-day notice period required by state law before any water rate increase can be adopted. A public hearing is set for August 11, 2025. Finance Director Brian Wright emphasized that adopting the notice does not increase rates; the actual rate scenario will be considered after the hearing.
• Business Item D – Resolution 25-1616 (Wastewater Rate Increase Notice): Unanimously approved. Identical to Item C but for the wastewater system. The public hearing is also scheduled for August 11, 2025.

Key Outcomes

• Consent Agenda Items A, B, C Approved Unanimously (Minutes, Magistrate appointment, IGA with Florence).
• Consent Item D (Pump Purchase) Approved Unanimously after discussion.
• Business Item A (Encroachment Permit) Approved 6-1 (Garcia opposed).
• Business Items B, C, D Approved Unanimously (CFO appointment, water and wastewater rate increase notices).
• Next Steps: The Veregy phase II contract will be presented for approval on June 9, 2025. The public hearing on proposed water and wastewater rate increases will be held August 11, 2025. Solid waste transition to WM begins June 1, 2025, with billing changes effective in August 2025.