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Home My WebLink About1996-12-02 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION,ARIZONA DECEMBER 2,1996 -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 (Arrived at 6:05) Mrs. Anne Surra Others Present: Curtis Shook,District Manager Glenn Gimbut,City Attorney Kathleen Connelly,District Clerk Keith Lewis,District Treasurer George Hoffman,Asst.City Manager Gordon Grandy,District Engineer 1.Call to order. 2.Roll call. 3.Approval of minutes of September 30,1996. Mrs. Barker moved for approval of the minutes of September 30,1996.Ms.Urich seconded the motion.The motion passed with 5 in favor and one abstention.(Mr. Hendricks arrived after this vote was taken,and Vice Chairperson Richmond was absent at the last meeting.) 4.Discussion and consideration of approval for Rust Engineering to perform evaluation of water system for an amount not to exceed $10,000. District Manager Curtis Shook briefed the Board on this item.He stated the utility is looking at alternate forms of financing in order to make the present debt long term, plus an additional amount of $1.5 million borrowed to improve and expand the current system in the service area.The bond houses will require an updated utility report,which upgrades the assets and brings the utility up to date as to what has been done.He is requesting approval for Rust Engineering to update the report in order to get a decent bond rating on a 20 -year note. Vice Chairperson Richmond moved to approve Rust Engineering to do the evaluation; and for them not to exceed $10,000.Mrs. Barker seconded the motion.The motion passed unanimously. 5.Discussion and consideration of Resolution No.1996-008;authorizing district chairman,district manager and district clerk to sign documents to extend date on note and loan agreement to March 31,1997. District Manager Curtis Shook briefed the Board on the item.He stated this would give the Board the authority to continue the interim financing another 3-6 Water Utilities Community Facilities District Meeting Minutes of December 2,1996 Page 1 of 4 months.This would enable the utility to market the bonds and have them sold by the time the financing runs out,with no additional cost.The current agreement is for 5.8%interest. Vice Chairperson Richmond moved to approve Resolution No.1996-008,authorizing the district chairman,district manager and district clerk to sign documents extending the date on the note and loan agreement to March 31,1997.Mrs. Barker seconded the motion.The motion passed unanimously. 6.District Manager report. District Manager Curtis Shook stated the utility is back up to full contingent. One of the maintenance positions was filled by a class 2 licensed worker from the air force base.R.E.Eck was replaced by Kevin Cox,an experienced individual with a class 4 license in both water and sewer. District Manager Curtis Shook stated Well No.6 is not up and running as of yet. They are waiting on a pump.We still draw water from Arizona Water, which is not a good situation as we are heading into the peak time of the year.If the specific dates are not met for the pump,we will be exercising liquidated damages. District Manager Curtis Shook stated the rate study should be done within the next month.Otherwise, everything is running fairly smoothly.Fortunately, city staff has been able to handle the electrical or short-handedness problems thanks to the intergovernmental agreement. District Manager Curtis Shook stated they are having trouble finding tests, reports,documents and financial documents from when Consolidated Water owned the company.These are records needed for the new bond offering and they are not available. City Attorney Glenn Gimbut stated Streich-Lang law firm photocopied all the financial records of Consolidated Water Utilities up to the end of the calendar year of 1994.Five boxes of records have been received that are mixed up,and there are more records in California and in a warehouse in downtown Phoenix. They are allowing our accountants to access the records at the law firm,where it is the most organized. District Manager Curtis Shook stated he believes one of the most significant problems they will face in the near future will be trying to determine what we have in the ground right now.There are areas of town where the records are poor,and they are concerned about pressure in those areas. Mr.Durbala asked if the fire district would be able to help them locate the lines with their hydrants. District Manager Curtis Shook stated in some areas they will be able to.The concern is for 2- and 3 -inch residential lines that run through main subdivisions Water Utilities Community Facilities District Meeting Minutes of December 2,1996 Page 2 of 4 that need to have main laterals that are 6-to 8 -inch. City Attorney Glenn Gimbut stated he believes they have pretty good schematics of the system as it is now. District Manager Curtis Shook stated the condition of the system is what is in question. Mr.Durbala suggested the problem of iron rusting out. City Manager Curtis Shook stated that was the end of his report. 7.District Treasurer report. District Treasurer Keith Lewis gave the Board copies of the October and November statements.He stated the utility is still ahead at this time.He split out the electric and water as per Mr.Durbala's request. Mr.Durbala asked why there was $107 difference from October to November on the money owed to the city. District Treasurer Keith Lewis stated i t was probably something he did not transfer over,such as supplies. Mr.Durbala asked if there was a possibility of the money being paid back. District Treasurer Keith Lewis was unsure. Chairman Coleman asked i f the CAP payment is fixed or variable. District Treasurer Keith Lewis stated it is higher than last year. City Manager Curtis Shook stated it is significantly higher in the second quarter and they need to check to see if that is the correct number. Chairman Coleman asked i f it was based on our allotment. City Manager Curtis Shook stated that was correct.He stated he wants to see if the transfer of rights has been completed before we make any more payments. Mr.Hendricks asked what the problem was with the pump. District Manager Curtis Shook stated it is coming out of a manufacturer and they keep stating it will be here next week.It is an item with special sensors for heat and other things installed at the factory and this is adding to the time. Mrs.Surra commented she did not get her water district information this time. District Clerk Kathleen Connelly stated it should have been in the front of the Water Utilities Community Facilities District Meeting Minutes of December 2,1996 Page 3 of 4 council packet. Mrs.Surra stated she had looked in her council packet. Vice Chairperson Richmond stated it was in the pocket. 8.District Counsel report. City Attorney Glenn Gimbut restated they are in the process of refinancing.He attended a preliminary meeting on the refinancing a couple of weeks ago.Kutak Rock will be serving as bond counsel.Chuck James and Snell & Wilmer will be disclosure counsel.Alden Capital Markets are acting as the investment banker and financial advisor.The good news is an automatic belief that we should be able to get a rated bond issue,and with insurance i t should be an AAA bond issue,giving us excellent rates. 9.Adjournment. Adjournment at 6:20 p.m. Douglas 'Coleman Chairperson Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of December 2,1996 Page 4 of 4