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HomeMy WebLinkAbout1995-08-07 WUCFD MINUTES DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA AUGUST 7, 1995 - 6:00 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Others Present: Chairperson Coleman District Attorney Bill Farrell Vice Chairperson Richmond District Manager Curtis Shook Mrs. Robin Barker - Absent 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 order of sale. He stated that on July 31 the judge indicated he would order a sale of all assets of Consolidated Utilities to be held on October 16, 1995. He stated that JACO Oil would be one of the two obvious bidders and that they are owners of two of the five major secured debts of Consolidated that caused this bankruptcy. He stated that thei r pi an, whi ch was approved by the court, i s that they pl an to bi d a minimum of $600,000 and would assume all outstanding secured debts. The other bidder would be the City of Apache Junction. He stated there is the possibility of an appeal by Mr. Stewart of Consolidated Water, but it is unlikely that the sale date of October 16 will be postponed He added that they would be preparing more aggressively in the meantime. Mr. Farrell briefed the Board on the Community Facilities District Preliminary Budget for FY 1995-96. He stated that the $80,000 was primarily for payments to the two law firms, plus fees for consultants and a preliminary fee that would have to be paid to First Intestate Bank, if an order of sale was to be forthcoming. He stated that the City Council had an item on their agenda for this evening about the transfer of the $80,000. He added that they will be preparing a new budget that must be adopted by resolution on of before October 1, 1995, and that it will reflect an income of about $5,750,000 to $6,000,000; this would include the loan from First Interstate Bank and the rest would be an estimate of what the operating income would be during the rest of 1995-96, if the District is the successful bidder. He further briefed the Board on the proposed budget and the process for adoption. Mr. Farrell briefed the council on amendments to the District's General Plan. He stated that the original plan that was adopted with the formation of the District refers to the acquisition of a water facility within the corporate limits of the city. However, there are two other operating divisions of Water Utilities Community Facilities District Meeting Minutes of August 7, 1995 Page 1 of 3 Consolidated Water and the court has deemed that they will be sold as a package at the sale. He stated that he will have the amendments for adoption at their next meeting. Mr. Farrell explained they also needed to adopt a feasibility study which would be an engineering statement showing that the assets they intend to purchase or build will have feasibility for the cost involved. He asked for authorization to the District Manager to interview engineering candidates through the request for proposals process and to authorize him to retain an engineer and proceed with the feasibility study. Mrs. Surra asked if the request for proposals process by the Board has the same requirements as the city's. Mr. Farrell explained that this process is not subject to competitive public bidding as the city's. Mr. Durbala asked if there was a purpose in keeping the engineer after the feasibility study. Mr. Farrell explained that it was an option and that a district engineer would be necessary for the operation of the system. Mrs. Surra move to direct the District Manager to get contracts for professional services by interviewing and retaining a water engineer to perform a feasibility study for the District. Vice Chairperson Richmond seconded the motion. Motion passed unanimously. Mr. Farrell asked for authorization to pay attorney fees to the Law Office of William Farrell and to the law firm of Jennings, Strouss and Salmon. He also asked authorization to contract one or two consultants to assist the District in preparing for what its bid would ultimately be. He explained that there might be a third bidder and they will not know what their bid may be, so they need to be prepared with subsequent bids. He further briefed the Board on two specialists with government background that have been selected by the District Manager and himself. He added he did not have an exact dollar from either one of them, but their estimate included in the budget was between $10,000 and $15,000 and it will be within that range. Mrs. Surra inquired about the balance after the $80,000 has been transferred. Mr. Farrell replied that it will be about $94,000. Mrs. Surra moved to authorize payment of $4,000 for attorney fees for July and August, 1995, out of the current budget. Mr. Hendricks seconded the motion. Motion passed unanimously. The Board discussed a possible date for the next meeting. Mrs. Surra moved to schedule an executive session at 6:00 p.m. and a public meeting at 6:30 p.m. on September 11, 1995. Mr. Hendricks seconded the motion. Mrs. Surra amended her Water Utilities Community Facilities District Meeting Minutes of August 7, 1995 Page 2 of 3 motion that the public meeting be held at 6:00 p.m. and a possible executive session at 6:45 p.m. Mr. Hendricks agreed with the amendment. Motion passed unanimously. Mr. Farrell informed the Board that he would provide them with comprehensive background information on Wednesday, August 9, about how all this came to be and about the sale of Consolidated Water Utilities, so that they be prepared with answers for the public and the media. Adjournment at 6:35 p.m. aug as eman Chairperson Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 7, 1995 Page 3 of 3