HomeMy WebLinkAbout1995-06-26 WUCFD MINUTES DISTRICT BOARD OF THE
WATER UTILITIES COMMUNITY FACILITIES DISTRICT
CITY OF APACHE JUNCTION, ARIZONA
JUNE 26, 1995 - 6:30 P.M.
MEETING MINUTES
BOARD OF DIRECTORS ROLL CALL: Others Present:
Chairperson Coleman District Attorney Bill Farrell
Vice Chairperson Richmond City Manager Curtis Shook
Mrs. Robin Barker City Attorney Glenn Gimbut
Mr. Joe Durbala Devel . Servs. Director Larry Harmer
Mrs. Grace Hagner Public Works Director Doug Dobson
Mr. Keith Hendricks City Engineer Gordon Grandy
Mrs. Anne Surra Planning Manager Jim Nakagawa
District Clerk Kathy Connelly
Mr. Farrell updated the Board on Consolidated Water Utilities bankruptcy hearings
of June 22 and June 23, 1995. He stated that on June 22 the court met to
consider a last minute attempt by Mr. Stewart of Consolidated Water to introduce
some alternative financing that would allow him to remain in possession of his
company and payoff some, if not all , of his creditors; but that was objected by
the city and the Corporation Commission. He stated the court will be ruling on
that July 31 and that the briefs will be approximately ten days before that. He
stated the judge indicated that if he ruled on the JACO Oil plan, that would make
the loan issue to Consolidated Water mute and he would not have to reach that
hearing.
Mr. Farrell updated the Board on the Community Facilities District operating
budget and stated that a written report had been distributed to the Board
previously. He stated that the Board originally received $50,000 from the City
Council : of that $36,000 will have been expended in equal payments to the two 1aw
firms; and that $5,000 wi11 be for the law firm that represents First Interstate
Bank leaving a surplus of $9,000. He asked the Board to approve the final
financial statement. Mrs. Surra moved in favor of that. Mr. Hendricks seconded
the motion. Motion passed unanimously.
Mr. Farrell asked for authorization to pay $2,000 to both his law firm and the
law firm of Jennings, Strouss and Salmon. Mrs. Surra moved in favor of that.
Mrs. Hagner seconded the motion. Motion passed unanimously.
Mr. Farrell asked for authorization to ask the city to conduct a fiscal audit of
the District's finances along with that of the city. City Finance Director Keith
Lewis and City Manager Curtis Shook agreed on that. Mrs. Barker moved in favor
of that. Mrs. Surra seconded the motion. Motion passed unanimously.
Mr. Farrell briefed the Board on the amendment to the District's general plan.
He stated that the original resolution establishing the District indicated the
Water Utilities Community Facilities District
Meeting Minutes of June 26, 1995
Page 1 of 2
acquisition of the Apache Junction division, however, the District may be
acquiring assets outside of the corporate limits. He stated that an amendment
will be brought at a future Board meeting. He stated that it is also necessary
that a feasibility study be undertaken to indicate that the District is
financially feasible to acquire Consolidated Water.
Mr. Farrell updated the council on recent legislation that could impact the
District. He stated that law was passed that requires municipalities by 1997 to
provide to all subdivisions the assurance of a 100-year water supply. He stated
if the District was successful in acquiring the water company, it would have to
undertake a rather extensive and expensive hydrological study that will guarantee
that.
Mr. Farrell briefed the Board on funds that will be needed for Fiscal Year
1995-96. He stated that the District is not subject to the same notice and
hearing requirements on the budget as the city is; therefore, if the District is
successful in acquiring the water company, they will come back to the Board with
an amendment to the budget that will show a much larger income, instead of the
borrowed funds, but also larger expenses that will be smaller than the income.
He stated that his law firm and the law of Jennings, Strouss and Salmon have
agreed to continue on a fee of $2,000 per month, which is $12,000 for both in six
months; that the bank will want a $21,000 payment in order to deposit the
District' s $600,000 with the Bankruptcy Court; that due diligence and search of
public records is estimated to be $5,000 and that he has asked for $10,000 in
miscellaneous in case bank rates go up; that the estimate for outside consultants
and accountants is $5,000; and $10,000 is for the engineer and water utilities
experts. He added that the money will be expended on a as-needed-basis and no
expense will be made unless it receives approval by the majority of the Board of
Directors.
He asked for authorization to the District Manager to approach the Mayor and
Council about the funding of expenditures in the amount not to exceed $85,000.
He added that this will be conditioned upon partial payments as required.
Mrs. Barker moved in favor of that. Mr. Hendricks seconded the motion. Motion
passed unanimously.
Mr. Farrell suggested July 24 for their next meeting. The Board discussed some
conflicts with that date and decided to schedule it for July 24 and August 7, and
later cancel one of them. Mrs. Surra moved in favor of both dates
with an executive session at 6:00 p.m. and a public meeting at 6:30 p.m. Mr.
Durbala seconded the motion. Motion passed unanimously.
Adjournment at 7:12 p.m.
o4gas 47o,1 e'ma n Kathleen Connelly
Chairperson District Clerk
Water Utilities Community Facilities District
Meeting Minutes of June 26, 1995
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