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Home My WebLink About1996-08-05 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION,ARIZONA AUGUST 5,1996 -6:00 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Chairperson Douglas Coleman Vice Chairperson Patricia Richmond Mrs.Robin Barker Mr.Joe Durbala Ms Carol Urich Mr.Keith Hendricks Mrs.Anne Surra 1.Call to order. 2.Roll call. Others Present: Curtis Shook,District Manager Glenn Gimbut, Asst. District Attorney George Hoffman,Asst.City Manager Doug Dobson,Public Works Director Kathleen Connelly,District Clerk Keith Lewis,District Treasurer Bill Farrell,District Council 3.Nation for executive session at 6:00 p.m..August 5,1996,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 district counsel;intergovernmental agreement with sewer district;district operational structure;required notice by Arizona Department of Environmental Quality. Mrs.Barker moved for the executive session as indicated on the agenda.Mrs. Surra seconded the motion.Motion passed unanimously. Chairperson Coleman recessed the public meeting at 6:06 p.m. 4.Reconvene public meet i ng . Chairperson Coleman reconvened the public meeting at 6:37 p.m. 5.Approval of minutes of July 2,1996. Mrs.Barker moved for adoption of the WUCFD meeting minutes of July 2,1996. Vice Chairperson Richmond seconded the motion.Motion passed unanimously. 6.Resolution No.1996-006:Adoption of tentative budget for Fiscal Year 1996-97 and establishing date of hearing for final budget adoption. District Manager Mr.Shook stated a budget must be adopted by October 1.He stated educated,calculated risks are being taken with this tentative budget based on what revenues and expenditures are expected to be.It has a provision to begin paying back the City of Apache Junction for funds lent to the district. Water Utilities Community Facilities District Meeting Minutes of August 5,1996 Page 1 of 5 Mrs.Barker asked if adopting a budget for the district is the same as adopting a budget for the city;can the budget go beyond the figure given? District Attorney Mr.GinMbut stated the law was not the same.It can be increased if desired at final adoption. Mr.Durbala clarified the district employees would be receiving the same pay increase as the city employees.He questioned the expense for professional services,wherein it increased from $6,000 in actual expenses over a six-month period,to $50,000 in projected expenses for a year. District Manager Mr.Shook stated system analysis studies have to be done, refinancing current borrowings under a longer term note,and borrowing $5.5 million for over a twenty to twenty-five year period are included in those expenses.ICON analyses will help to determine the district's ability to serve, to provide water analysis,and to develop a long term plan. Mr.Durbala questioned the lease of the building. District Manager Mr. Shook stated city personnel is helping to staff the district right now,which is saving the district up to $150,000 the first year.The relationships must be fine-tuned.Over the next year these areas must be separated. Mr. Durbala stated he did not see anywhere in the on the money being paid back to the city. District Treasurer Mr.Lewis stated the cash is in the liability benefit,which they do not have. schedul e. Mr. Durbala questioned what the "Other Services" administrative budget anything not in the expense part,it is It does not have to be on the are. District Attorney Mr.Gimbut stated he believed it referred to engineering services,studies and designs. District Manager Mr.Shook believed it to be the annual payment to CAP.The district has to pay $55 per acre foot to retain the rights to the water, whether it is taken or not. Mr.Durbala questioned the high expense for gas,oil and lubricants. Public Works Director Mr.Dobson stated it also included preventative maintenance. Ms Urich questioned about the overtime item in administration, wherein all other categories showed zeroes,this one had nothing in it. District Treasurer Mr.Lewis stated it had nothing in it to begin with,so Water Utilities Community Facilities District Meeting Minutes of August 5,1996 Page 2 of 5 nothing VMS carried over. Ms Urich questioned why the projected telephone bill is $500/month for only two- and -a -half employees. District Measurer Mr.Lewis stated this included a WATS line,a FAX line and regular telephone lines. Mr. Durbala moved to approve the tentative budget, Resolution No. 1996-006, with final adoption scheduled for September 16,1996,and exhibits labeled 1,2 and 3 in Section IV,as presented.Mrs.Surra seconded the motion.Motion passes unanimously. 7.Discussion and consideration of Intergovernmental Agreement with Superstition Mountain Community Facilities District (SMCFD)for establishment of a stand pipe and water distribution facility at the sewer plant facilities of SMCFD. District Council Mr. Farrell briefed the board on the item.This is a ten year lease and the driveway must be improved.It allows for sale of CAP water without treating it to construction companies.If there are any material changes made after this evening, the agreement will be returned to the board on September 16. If there are no changes,the agreement will be completed. Mrs.Surra stated she had heard there were multiple people waiting for this agreement to be approved. Mrs. Surra moved that the Intergovernmental Agreement with Superstition Mountain Community Facilities District (SMCFD)and the Water Utilities Community Facilities District be approved in concept.Mrs.Barker seconded the motion. Motion passed unanimously. 8.District Manager report. District Manager Mr.Shook stated they had received the district financial statement which shows a healthy surplus.He requested Public Works Director Doug Dobson to give an update on the extension of the water line. Public Works Director Mr.Dobson stated the water line is halfway between Idaho and the yard,and it should be to the well site in the next three days. District Manager Mr.Shook continued,stating everything appears to be running smoothly with the district.There is periodic pump failure during thunderstorms, however,once the new well and storage tanks are available, those problems should be addressed. 9.District Treasurer report. District Treasurer Mr.Lewis stated everything looked good right now, though he Water Utilities Community Facilities District Meeting Minutes of August 5,1996 Page 3 of 5 has nothing to compare i t with,and hopefully it stays this way.Even though the district has had to pay $42,000 to CAP twice so far as its yearly payment,the district is still showing a surplus. 10.District Counsel report. District Counsel Mr.Farrell reviewed what the district has accomplished since its inception.The district has lived up to every pledge it has given to the council,it is operating in the black,it appears the debt will be repaid after the end of the first full year of operation,services are being extended to citizens that they have not had before, water quality is being upgraded,and all of this was done without a rate increase.He reminded them of the important agreement with Pinal County over taxes scheduled for the next meeting.Tonight the chairman signed the agreement for the assumption of the CAP contract, which will be sent to the federal government.The budget will be updated and presented at the September 16 meeting,clarifying some issues raised tonight.Personnel rules and issues will be in shape,and the rules for signing up for water will be at the next meeting. 11.Adjournment. Chairperson Mr.Coleman adjourned the meeting at 6:59 p.m. Douglas goleman Chairperson /e-ieede--4 4 6 Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 5,1996 Page 4 of 5 DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION,ARIZONA MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the public meeting of the District Board of the Water Utilities Community Facilities District,Apache Junction, Arizona,held on the 5th day of August,1996.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of August,1996. KATHLEEN CONNEL District Clerk Water Utilities Community Facilities District Meeting Minutes of August 5,1996 Page 5 of 5