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HomeMy WebLinkAbout1996-02-06 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA FEBRUARY 6, 1996 - 6:00 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Chairperson Douglas Coleman Vice Chairperson Patricia Richmond Mrs.Robin Barker (Absent) Mr.Joe Durbala Mrs.Grace Hagner Mr.Keith Hendricks (Absent) Mrs.Anne Surra (Absent) 1.Call to order. 2.Roll call. Others Present: Curtis Shook,District Manager Glenn Gimbut, Asst. District Attorney Doug Dobson,Public Works Director George Hoffman,Asst.City Manager Kathleen Connelly,District Clerk 3.Executive session at 6:00 p.m. pursuant to A.R.S. § 38-431.03.A.3. for the purpose of discussion and consideration for legal advice with the District Counsel regarding Pinal County property tax payments. Mrs.Hagner moved for an executive session.Mr.Durbala seconded the motion. Motion passed unanimously. Chairperson Coleman reconvened the public meeting at 6:45.Mrs.Surra was present at this time. 4.Resolution No. 1996-004: Adopting policy regarding control of backflow and cross connections. District Manager Curtis Shook stated that this item would comply with ADEQ's requirement. Mr.Durbala moved for adoption of Resolution No. 1996-004.Vice Chairperson Richmond seconded the motion.Motion passed unanimously. 5.Resolution No.1996-005:Ratifying qualifies tax-exempt obligation designation. District Manager Curtis Shook stated that this item was asked for by the District Counsel and that it is necessary to put in place tax exempt financing for the purchase of Consolidated Water Utilities. Assistant Counsel Glenn Gindout added that this was a cleanup resolution which was recommended by Anne Kleindienst of Jennings,Strouss and Salmon. Water Utilities Community Facilities District Meeting Minutes of February 6,1996 Page 1 of 4 Mr.Durbala moved for approval of Resolution No.1996-005.Mrs. Hagner seconded the motion.The motion carried. 6.Discussion and authorization for District Manager to begin payments toward Pinal County property tax. Mr.Shook stated that this item would comply with the Bankruptcy Court order and that it does not preclude a negotiated settlement of those claims which might alter the Bankruptcy order;that this would only allow him to begin making good- faith payments towards a moral ,not legal,obligation of the Water Utilities District to the delinquent Pinal County taxes. Mr.Gimbut explained the legal process by which acquisition of property by government would result in the tax debt being extinguished.He stated that in this situation the Water District would pay no money for owed taxes, however, the District Manager has considered that it would not be fair to entities such as the school district,fire district and the college,which depend on property taxes as their source of revenue for their operations, so payment of the property taxes would be a moral obligation rather than a legal one. Mr.Durbala moved to authorize the District Manager to begin moral payments toward Pinal County property taxes.Vice Chairman Richmond seconded the motion. Motion passed unanimously. 7.Discussion and authorization for District Manager to pay legal bills for Jennings,Strouss and Salmon and William E.Farrell. Mr.Shook briefed the Board on expenditures incurred in the two years of the acquisition of the water company which included payment for professional services such as legal and consulting services during the acquisition and initial operation of the district.He stated that the bills received post -acquisition represent legal services during that entire period;that a payment schedule has been negotiated with the individuals involved and he explained that. Mrs. Surra confirmed with the District Manager that the monthly payments had been applied. Vice Chairperson Richmond moved to authorize the District Manager be allowed to make payment of legal services incurred while the water company was acquired. Mrs.Surra seconded the motion.Motion passed unanimously. 8.Discussion and authorization for District Manager to pay professional services bill to Rust Engineering for engineering of the waterline extension to the wastewater treatment plant. Mr.Shook stated that this item would be to authorize him to pay an amount not to exceed $26,904.00 to Rust Engineering for designing and engineering the water line extension to the waste water treatment.He stated he believes it would be below that mount and that currently i t is about $17,000. Water Utilities Community Facilities District Meeting Minutes of February 6,1996 Page 2 of 4 Mrs.Surra moved for approval of this item.Mr.Durbala seconded the motion. Motion passed unanimously. 9.Discussion and approval to contract for consultant services to design well. Mr.Shook stated that in December the Board authorized him to hire a hydrology consultant to find appropriate locations to drill a new well for better quantity and quality of water to customers;that the hydrology study has been done and it states that it is likely to find good quality water on the Public Works property and that precludes having to buy an additional piece of land.He stated that the well design and construction proposals had been received and that he would recommend approval to negotiate with Geraghty and Miller on their proposal of $81,000. Mrs.Surra moved for approval of this item.Vice Chairman Richmond seconded the motion.Motion passed unanimously. 10.District Treasurer report. Mr. Shook gave a financial report on the operating expenses and debt of the Water District. 11.District Manager report. Mr.Shook reported that the water line extension to the waste water treatment plant was complete;that i t was currently being pressure tested to make sure there are no leaks; and that it would be bacteria tested by the end of the week and i t should be in service to the sewer district some time next week.He thanked District Superintendent Doug Dobson and his people for getting that job done in a timely fashion for the sewer district. Mr.Shook reported on the schedule for the well drilling.He clarified that water would be available in the next four to six months,rather than four to six weeks as stated in the Independent.He stated that customers would be informed about the Water Utility's i ntentions and schedule for the same.He briefed the Board on the bid schedule for the well. Mr.Shook reported on a strategic plan for the water utility which would be an analysis of all the utility's operations.He stated that as interest rates go down they are going to look at new financing to replace the interim First Interstate financing, which may be at or below 4%.He stated that they would be structuring their operations in such way that the best quality and quantity of water would be available to customers and that it would not anticipate a rate increase.Mr. Shook stated that the strategic plan included a look at meter and hookup fees because a private company has a gross markup that is required to be charged by the ACC but the water district does not and this creates a need to look at hooking and meter fees. Water Utilities Community Facilities District Meeting Minutes of February 6,1996 Page 3 of 4 Mr.Shook reported that the work on CAP water allocation is paying off and it looks like the water utility will have a contract for the transfer of those rights from CAWCD very shortly. Mr.Shook reported that employees of Consolidated Water have been brought under the water utility structure with employment guidelines,rules and regulations that are similar by those used by the City of Apache Junction. Mr.Gimbut explained to the Board the staff has been working on a rather ambitious time schedule in trying to accomplish the tasks that they have been given by the end of June,which has caused the Board to be called on a relatively short notice and with information available the same day of the meeting.He stated he would like to say that will not happen again in the near future but he cannot do so,and that there will be times for some emergency meetings. Mr.Durbala asked,since the new well was now being drilled for better quality of water,if they will not have to depend and rely on that connection. Mr.Shook explained that the water utility intended to be a self-sufficient, progressive utility that would stand on its own feet and that all the moves they are making are done with that goal in mind;that the first thing is making sure they can operate a financially responsible utility that would serve the customer without rate increases. Chairperson Coleman adjourned the meeting on a unanimous vote:motion made by Mrs.Surra and seconded by Mrs.Hagner. Adjournment at 7:05 p.m. 1 ,-1uouglaspleman Chairperson Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 6,1996 Page 4 of 4