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HomeMy WebLinkAbout1994-11-14 WUCFD MINUTES WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA NOVEMBER 14, 1994 6:30 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Others Present: Mrs. Jean Perkins, Chairman (Absent) District Attorney Bill Farrell Mrs. Robin Barker, Vice Chairman District Clerk Kathleen Connelly Mr. Douglas Coleman Interim City Manager George Hoffman Mr. Paul Perkins Public Works Director Doug Dobson Mrs. Anne Surra District Treasurer Keith Lewis Mrs. Pat Richmond Mr. Keith Hendricks (Absent) UPDATE ON STATUS OF CONSOLIDATED WATER COMPANY BANKRUPTCY COURT PROCEEDINGS BY C.F.D. BOARD ATTORNEY BILL FARRELL. Mr. Farrell recommended scheduling a working meeting of the Water Utilities Community Facilities District Board. He referred to an introductory letter regarding a tentative operating budget and an executive summary which was confidential . He stated that at their next meeting the Board will have to make some decisions about the acquisition of Consolidated Water. He briefed the Board on the possibility of bidding on Consolidates Water and emphasized the importance of keeping the information on the executive summary confidential . He explained that JACO Oil , who is one of the secured creditors of Consolidated Water, has offered a plan to the Bankruptcy Court which asks for a public sale of all of the assets of Consolidated Water along with an obligation to take over all of their liabilities. The Bankruptcy Court has scheduled two meetings; one by the end of this week to accept any changes to JACO's plan and a hearing in early January to hear final arguments about JACO's plan. Then it will schedule a date for the public sale which might be in April . He recommended that between now and then they get prepared with a financial position to be able to make a bid on the acquisition of all of the assets of Consolidated Water. He explained there are two other divisions of Consolidated Water which are not in Pinal County and added that they are working on a contingency that would allow the W.U.C.F.D. to divest itself of those two divisions. He stated that the mathematics on this project indicate that the acquisition would not encumber a rate increase and the Board will be able to operate the system, pay the debt and make the improvements that they would like to make. He Water Utilities Community Facilities District Meeting Minutes of November 14, 1994 Page 1 of 2 explained that the three major debts faced by Consolidated are all interest- bearing debts which continue to increase but the advantage the Board has over other bidders is that by Title 48 the Community Facilities District borrowing funds will be tax exempt as well as the bonds which become a favorable investment for people. He further explained the reasons why the Community Facilities District bid could be considered; added that the possibility of the public auction in April gives the Community Facilities District plenty of time to get well set to operate this; and stated that the critical part was to establish an operating budget. He asked the Board to study the suggested operating budget and the executive summary, and then schedule a combined public session and executive meeting to discuss the details of this transaction. The Board decided on November 29, 1994, as their next meeting date. Kathy Connelly, Secretary to the Board, confirmed with Mr. Farrell that a joint business meeting and executive meeting needed to be scheduled. Mr. Coleman asked about Item No. 4 of the agenda and Mr. Farrell advised the Board to postpone it because they needed more time to consider that. SELECTION OF DATES TIMES AND LOCATIONS FOR FUTURE MEETINGS. Mrs. Surra moved that the Water Utilities Community Facilities District Board meet again on November 29 at 6:00 p.m. for executive session to be followed by a regular meeting at 7:00 p.m. Mrs. Richmond seconded the motion. The motion was unanimously approved. Adjournment at 6:48 p.m. Robin Barker, Vice Chairman C , Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 14, 1994 Page 2 of 2