HomeMy WebLinkAbout2024 05.21 WUCFD Minutes City of Apache Junction, Arizona City Council Chambers
300 E Superstition
Boulevard
Meeting Minutes Apache Junction,AZ
IN 85119
Water Utilities Community Facilities
wwmajwaterdistrict.org
District P:(480)982-6030
Doors are open to the public at least 15 minutes prior to the
posted meeting start time.
Tuesday,May 21,2024 6:00 PM City Council Chambers
A. Call to Order
Chairperson Wilson called the special meeting to order at 6:00 p.m.
B. Roll Call
Present 7- Chairperson Wilson,Vice Chair Schroeder, Boardmember Cross, Boardmember
Heck, Boardmember Johnson, Boardmember Nasser;and Boardmember Soller
Staff in attendance:
Bryant Powell, District Manager
Matt Busby,Assistant District Manager
Yvette McKinney, Deputy District Clerk
Joel Stern, District Legal Counsel
Mike Loggins, District Director
Charles Briggs,Water District Project Manager
Stacy Ramirez, Utility Billing Supervisor
Rita Vineyard, Senior Administrative Assistant
Angelie Hawley, District Treasurer
Connie Chow, District Controller
Eli Richardson, Management Analyst
C. Agenda Items
1. 24-426 Approval of meeting minutes of April 16, 2024.
Boardmember Heck made a motion to approve the meeting minutes of the April 16,2024,
meeting.Boardmember Cross seconded the motion.
Yes: 7- Chairperson Wilson,Vice Chair Schroeder, Boardmember Cross, Boardmember
Heck, Boardmember Johnson, Boardmernber Nasser and Boardmember Softer
No: 0
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Water utilities Community Facilities Muting Minutes May 21,2024
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2. -427 Presentation, discussion; and consideration of approval of an agreement for
material and delivery with Dana Kepner Company, Inc,for the purchase of
4,500 radios for utility meters,2 towers,and associated parts for the
Automated Meter Infrastructure to serve the District using the pricing terms of
the City of San Luis Request for Proposal PAN-2024-03 in the amount of
$1,123,45 ,77.
Boardmember Neck made a motion that the agreement for material and delivery between Water
Utilities Community Facilities District and Cana Kepner Company Inc.for Automated Meter
Infrastructure using the pricing terms of the City of San Luis Request for Proposal-BAN-2024-03
fora total not to exceed 1,1 3,456.77 be approved.Boardmember Johnson seconded the motion.
Yes. 7- Chairperson Wilson,Vice Chair Schroeder, Boardmember Crass,Boardmember
Neck, Boardmember Johnson, Boardmember Messer and Boardmember Soller
No: 0
District Direct Mike Loggins presented an agreement with Dana Kepner for the purchase of
radios for Automated Meter Infrastructure(AMI) using funds from an approximate$1.1 million
grant from Water Infrastructure Finance Authority of Arizona(WIFA). By utilizing the City of San
Luis cooperative agreement for the Request for Proposal, the District chose Dana Kepner as
the provider.The District will cover an additional$800,000 for in-kind services.The in-kind
services will include the work and labor used for installing the radios, implementing the new
system,and managing the:project.Total cost for the project is approximately 1.9 million,
The AMR project will allow the District to add radios to 4,500 existing meters in the District's
northern service area.Along with the radios,two additional towers will be installed in the city
which will receive the reads from the radios within an hour of the meters being read instead of
the current 30-day cycle.The District,as well as the customer will be notified sooner; if any
leaks are present.This notification will benefit both the customer and the District,
3. 24-428 Presentation and discussion on proposed District budget for Fiscal Year(FY)
2024- 025 to include classification and compensation plan for District
employees and proposed rates,fees, and charges applicable during F
2024-2025,
District Director Mike Loggins presented an overview of the proposed District budget for Fiscal
Year(FY)2024-2025 to include proposed rates, fees,and charges applicable during FY
2024-2025 and classification and compensation plan for District employees.
Mr. Loggins presented an overview of the current fiscal year budget.The FY 202 -2024 budget
was expected to be$7.9 million.The District is using some of its reserves this year. Revenue is
up approximately 10%due to the new construction in the southern portion of Apache Junction.A
grant was received for the installation of radios attached to meters for existing customers which
will be done in FY 2024-2025,The District is projected to spend around$9 million.
Mr.Loggins presented an overview of the FY 2024-2025 budget.The District is proposing a
budget of$13,8 million. The District will collect approximately$1 million of system connection
fees and$11 million on water resource acquisition fees if the current projects continue like they
have been.The water resource acquisition fees are used for purchasing additional water in the
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Water Utilities Community Facilities Meeting Minutes May 21,2024
District
future, These collected fees are being put into a saving account to be used to fund the Bartlett
Dam Project with Salt River Project, The District has estimated needing approximately$22 to
$23 million in 2027 to fund the project.
Some of the larger projects proposed for FY 2024-2025 include replacing the coating on the
backwash tank, installing a security system at the Superstition Area Water Plant, and design,
replace, and improve Booster Station 2.The District will be designing and looking for property
for a new office in the future. Other projects include installing radios on all meters, to be paid for
by a grant from Water Infrastructure Finance Authority of Arizona (WIFA), install new aquifer,
storage and recovery well, possibly funded by a grant from WIFA, and construction of an
Advanced Water Purification Demonstration Trailer.
Work continues with Salt River Project on the Verde River Sedimentation Mitigation study for a
cost of$100,000 per year over a four-year period. The District is currently in year three of the
study. The Bureau of Reclamation and Salt River Project will be making an announcement
about funding soon.A tour of the area was cancelled due to fires in the Bartlett Lake area.
The District continues to purchase Non-Indian Agricultural water,This will occur over a five-year
period at a cost of$325,000 per year. The District is in year four of five, paying for back capital
charges incurred during the last 20 years that Central Arizona Project(CAP) has had the
Non-Indian Agricultural water.
Mr, Loggins presented an overview of the cost of CAP water,These charges are increasing
annually, and operation and maintenance fees are around $1.3 million.
Mr. Loggins presented an overview of the proposed rate adjustments for FY 2024-2025. For
customers within the city limits this increase would include 5% in the base rate and no change
to the consumption rate or tiers, for a 2.3%overall increase, or$1.66 per month, For customers
in the county area this increase would include 5% in the base rate and no change to the
consumption rate or tiers, for a 1.9%overall increase, or$1.66 per month. He proposed an
increase in the residential connection fees and water acquisition fees which will not affect
current customers.
Mr. Loggins is proposing an increase in system connection fees. The increase is based on the
current consumer price index for construction. This is a one-time fee and is only for new
development.These fees(funds) assist with system maintenance as well as future upgrades.
Water resource acquisition fees are also increasing. These fees help to pay for the purchase of
water used in the District.
Mr, Loggins presented an overview of the proposed classification and compensation plan for
District employees,This will include a 2.5%step increase for all employees, and a 4% increase
on average to health insurance premiums.The premium cost is shared between the District
and the employee,
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Water Utilities Community Facilities Meeting Minutes May 21,2024
District
Mr, Loggins presented the final budget meeting schedule,The final budget will be presented on
Tuesday, June 18, 2024, at 6:00 p.m, in the Apache Junction City Council Chambers.
4. 24-429 Consideration of Resolution No, 2024-006, declaring as a public record and
adopting certain documents filed with the District Clerk entitled"Apache
Junction Water District Utilities Community Facilities District Classification
and Compensation Plan for Fiscal Year 2024-2025",
Boardmember Schroeder made a motion that Resolution No.2024-006,declaring as a public
record and adopting certain documents filed with the district clerk entitled"Apache Junction
Water Utilities Community Facilities District classification plan,compensation plan,and the flat
and hourly schedule for fiscal year 2024-2026";be approved.Boardmember Messer seconded the
motion.
Yes: 7- Chairperson Wilson,Vice Chair Schroeder, Boardmember Cross, Boardmember
Heck, Boardmember Johnson, Boardmember Nesser and Boardmember Seller
No: 0
D. Public Hearing
5. 24-430 Presentation, discussion, public hearing and consideration of Resolution No.
2024-007, pursuant to A,R.S.§48-716, adopting a proposed budget for the
fiscal year beginning July 1,2024 and ending June 30, 2025; adopting
proposed rates,fees, deposits,water resources acquisition fees and charges
applicable for the Fiscal Year beginning July 1, 2024 and ending on June 30,
2025; establishing a public hearing on the proposed budget; and directing
district staff to solicit comments from the City of Apache Junction on the
proposed annual budget,
Boardmember Heck made a motion that Resolution No.2024-007,a resolution of the Board of
Directors of the Water Utilities Community Facilities District(City of Apache Junction,Arizona),
pursuant to A.R.S.§48-716,adopting a proposed budget for the Fiscal Year beginning July 1,
2024 and ending on June 30,2025;adopting proposed rates,fees,deposits,water resource
acquisition fees and charges applicable for the fiscal year beginning July 1,2024 and ending on
June 30,2025;establishing a public hearing on the proposed budget;and directing district staff to
solicit comments from the City of Apache Junction on the proposed annual budget be approved
and further move the public hearing for final budget adoption be held on June 18,2024 at 6:00 prn
in the Apache Junction City Council Chambers,300 East Superstition Boulevard,Apache Junction,
Arizona.Boardmember Seller seconded the motion.
Chairperson Wilson called for a Public Hearing on the proposed budget and rate schedule for
Fiscal Year 2024-2025.
Donna Carr,Apache Junction, expressed her concerns regarding water quality.
Chairperson Wilson commented this was not part of the budget discussion, he closed the
public hearing, and called for a motion,
E. District Manager Report
District Manager Bryant Powell reported that Hazel Randall, a former employee of the District
had passed away.
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Water Utilities Community Facilities Meeting Minutes May 21,2024
District
F. District Director Report
6. 24-438 Presentation, discussion, and update on District wide water system.
No report,
G: District Treasurer Report
No report,
H. Adjournment
Chairperson Wilson adjourned the meeting at 6:33 p.m.
ACCEPTED THIS— L DAY OF gff,�LJ ' 2024, BY THE CHAIR
PERSON AND DISTRICT 130ARD OF THE WAT'�R UTILITIES COMMUNITY FACILITIES
DISTRICT, (CITY OF APACHE JUNCTION,ARIZONA),
SIGNED AND ATTESTED TO THIS DAY OF AiAaUf 2024,
WALTER"CHIP'WILSON
Chairperson
ATTEST:
e—
JE 'I'FER PE IA
District Clerk
WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
regular meeting of the Water Utilities Community Facilities District of the City of Apache
Junction,Arizona, held on the day of Ina Ll 2024. 1 further
certify that the meeting was duly called and held and that a quorum was present.
Dated this day of U4 JLJ 2024,
JF,&FER PENA
District Clerk
City of Apache Junction,Arizona Page 5