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Home My WebLink About1996-09-30 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA SEPTEMBER 30, 1996 - 6:00 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Chairperson Douglas Coleman Vice Chairperson Pat Richmond (Absent) Mrs.Robin Barker Mr.Joe Durbala Ms.Carol Urich Mr.Keith Hendricks Mrs.Anne Surra Others Present: Curtis Shook,District Manager Glenn Gimbut,Asst.District Counsel Kathleen Connelly,District Clerk Keith Lewis,District Treasurer George Hoffman,Asst.City Manager Doug Dobson, District Operations Mgr. 1.Call to order. 2.Roll call. 3.Approval of minutes of September 16,1996. Mrs.Barker moved for adoption of the minutes of September 16,1996.Ms.Urich seconded the motion.Motion passed unanimously. 4.Discussion and consideration of intergovernmental agreement between the Water Utilities Community Facilities District (City of Apache Junction,Arizona)and Superstition Mountains Community Facilities District for purchase of long term storage credits. District Manager Curtis Shook deferred discussion to Assistant District Counsel Glenn Gimbut. Assistant District Counsel Glenn Gimbut stated Items No.4 and 5 are not ready for adoption tonight.The Superstition Mountains Community Facilities District is not ready to go through with either agreement. District Manager Curtis Shook requested the board to be briefed on the item. Assistant District Counsel Glenn Gimbut stated the purpose for purchase of the long term storage credits is for the district,which is a part of the Arizona groundwater management area,and as such has a right to pull a certain amount of water out of the ground,to recharge or replenish water into the ground,or it has to pay the State of Arizona for its replenishment.The time period is estimated at three years in the future,where 1,000 to 1,500 acre feet will be needed to offset what was taken.I f replenishment credits have not been purchased, we will pay $90/acre foot to the State of Arizona for every acre foot taken out of the ground.Buying the recharge credits from SMCFD 411 at $43/acre Water Utilities Community Facilities District Meeting Minutes of September 30,1996 Page 1 of 4 foot is a substantial savings for the district.This was to be a twenty year agreement with first refusal rights. 5.Discussion and consideration of agreement between Water Utilities Community Facilities District (City of Apache Junction,Arizona)and Superstition Mountains Community Facilities District for establishment of a stand pipe facility at the sewer treatment plant site of Superstition Mountains Community Facilities District. Chairperson Coleman asked i f this item was also not ready. District Manager Curtis Shook stated it was not ready,and briefed the board on the item.The district is attempting to enter into an agreement with the sewer district for a non -potable stand pipe located at the wastewater treatment plant. Late last week they notified the district they are not sure what pieces of land they own,and it is unsure when or even if a stand pipe can be located there. The district will start looking to buy a 3-5 acre piece of land from the state in the area for storage facilities,stand pipe facilities and a water filtration plant.The 16.5 acre piece of land already owned will then become extremely valuable in the future for municipal use or in the combination of a sale.It is estimated at $25,000 -$30,000/acre with the value going up.It does not have water at this time, but it is by the freeway.The district is looking at putting in a potable stand pipe at the public works yard, which will have a keyed systems so the frequent users can have a monthly account. 6.Consideration and passible award of bid for Project No.WD 96-04, Equipping of Well #6. District Manager Curtis Shook briefed the board on this item.The engineering estimate was $136,450,the low bidder was B.L.Weber at $143,125.Due to the time involved in getting the well on line,it is recommended the board award the bid to B.L.Weber. Mrs. Surra moved to award the bid for Project No. WD 96-04, Equipping of Well #6, located at the public works yard,to B.L.Weber Group,Inc.,in the amount of $143,125 and that the authorization for negotiation with the Weber Group be given to the manager in order that we might seek even a lower price with further negotiation.Mr.Durbala seconded the motion.The motion passed unanimously. 7.Authorization for District Manager to contract for financial advisor to the District. District Manager Curtis Shook briefed the board on this item.Three proposals were received for financial advisor.The proposals were from Rauscher Pierce in the amount of $50,000,one from Peacock,Hyslop,Staley & Givens in the amount of $4,500 flat fee contingent on the sale of bonds plus expenses,and the last bid from Alden Capital Markets of $10,000.During interviews and establishing the scope of services,the last two agreed to work for $4,500.He was discouraged by the conduct of representatives of the first two bidders.He feels Water Utilities Community Facilities District Meeting Minutes of September 30,1996 Page 2 of 4 comfortable with Alden Capital Markets and recommends the contract be given to them for $4,500 plus expenses. Mrs. Surra moved to allow the district manager to negotiate a contract with Alden Capital Markets to provide financial counselling to the water board in the amount of $4,500 plus expenses.Mrs.Barker seconded the motion.The motion passed unanimously. 8.District Manager report. District Manager Curtis Shook stated a part-time worker named Rhonda Snow passed away with a brain aneurysm.She got sick on Tuesday or Wednesday and on Friday she died.Flowers and condolences have been sent to the family. District Manager Curtis Shook stated Interim Water Operations Manager R.E.Eck left and went to the City of Mesa.The district is in the process of replacing him.They have been operating without incident. Mr.Hendricks asked why we keep losing our employees to Mesa and Chandler. District Manager Curtis Shook stated the pay is one thing.It is estimated the pay is at least ten to fifteen percent highter than the district pay.That is not just water utility pay,that is city-wide pay. 9.District Treasurer report. District Measurer Keith Lewis briefed the board on the report given to them. The district appears to be staying even at this time. Ms.Urich stated it was nice to see a miscellaneous category with low income in it. Mr.Durbala asked what miscellaneous sales was.District Treasurer Keith Lewis stated he could not recall at this time what it was.District Manager Curtis Shook stated he believed i t was water trucks and temporary development. Mr.Durbala asked why utilities was so high.District Treasurer Keith Lewis stated there is $12,000 for water from Arizona Water,$6,000 a month for one of the valves.Mr.Durbala requested him to put the Arizona Water purchases in a separate line. Mrs.Surra asked how long before the well gets on line can we stop buying water. District Manager Curtis Shook stated six to eight weeks. Mrs.Surra asked how much backlog there is of preprinted material.District Treasurer Keith Lewis stated there is approximately 5,000 envelopes, which will be used up in approximately six months. Mrs.Surra and District Manager Curtis Shook discussed putting the name change on an agenda.It was decided to put it on the next agenda. Water Utilities Community Facilities District Meeting Minutes of September 30,1996 Page 3 of 4 10.District Counsel report. None. Adjournment at 6:25 p.m. oug i as vo i eman Chairperson Kathleen Connelly e%f District Clerk Water Utilities Community Facilities District Meeting Minutes of September 30,1996 Page 4 of 4