HomeMy WebLinkAbout1997-02-03 WUCFD MINUTESDISTRICT BOARD OF THE
WATER UTILITIES COMMUNITY FACILITIES DISTRICT
CITY OF APACHE JUNCTION, ARIZONA
FEBRUARY 3, 1997 - 6:00 P.M.
MEETING MINUTES
BOARD OF DIRECTORS ROLL CALL:
Chairperson Douglas Coleman
Vice Chairperson Patricia Richmond
Mrs.Robin Barker
Mr.Joe Durbala (arrived at 6:03 p.m.)
Ms.Carol Urich
Mr.Keith Hendricks
Mrs.Anne Surra
Others Present:
Curtis Shook,District Manager
Glenn Gimbut,City Attorney
Kathleen Connelly,District Clerk
George Hoffman,Asst.City Manager
Doug Dobson,District Operating Mgr.
Bill Farrell,District Counsel
1.Call to order.
2.Roll call.
3.Approval of minutes of January 7,1997.
Vice Chairperson Richmond moved to approve the minutes of the January 7,1997,
meeting.Ms.Urich seconded the motion.The vote was unanimous.
4.Discussion and distribution of proposed district policies and procedures
(no action necessary at this time).
District Manager Curtis Shook deferred to District Operating Manager Doug Dobson.
District Operating Manager Doug Dobson stated he was going to pass out proposed
policies regarding their safety,office,procedures,personnel,construction
guideline,main extension request and back float prevention device policies.
However,he had talked to George Hoffman last week and found he was closer to
completion on all the policies.He therefore decided to wait a couple of weeks
for the additional information and give complete policy and procedure information
instead of partial policy and procedure information.He does want to get
something in writing on the main extension request regarding its procedures and
fees.They are now working on past precedents,but they want to adopt a normal
operating procedure and policy.He will give them all the policies and
procedures at the next meeting.
5.Resolution No.1997-001,a resolution of the Board of Directors of the
Water Utilities Community Facilities District (City of Apache Junction,
Arizona)clarifying Resolution 1996-008 and authorizing the execution of
any and all documents necessary to extend terms and conditions of the
December 28, 1995 loan agreement to a new maturity date of March 31, 1997.
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
Page 1 of 6
District Manager Curtis Shook deferred the briefing of this item to Bill Farrell.
District Counsel Bill Farrell briefed the board on this item.He stated even
though the board did not want to change any of the terms and conditions on the
original loan other than the maturity date,the bank did want to make some
changes.In effect, the new resolution states the district will not pay any more
than what has been borrowed,nor pay any new interest,but some of the other
terms may be changed such as the event of default and the date upon which it
would occur.He passed out a memorandum to the board which showed all of the
things the district stated i t would do have been accomplished.The new loan
document should be signed before February 10.He stated if the bond sale goes
well,it will pay off the entire principal balance of the loan, which should be
before March 31,1997.
Mrs.Barker asked if there was supposed to be a figure listed in 2.1A.
District Counsel Bill Farrell stated they were unsure at the time this letter was
received,and it has since been determined the full draw down figure is $4
million exactly.He commented the key paragraph is 2.2A.
Mrs.Barker asked what Part VIII of the initial agreement was.
District Counsel Bill Farrell stated it was their standby if the district had
been unable to find independent financing,in which case the debt would have been
rolled over into a standard 7 year loan with prime plus 2 market rate.
Ms.Urich stated on the last page it lists Doug as the district manager.
District Counsel Bill Farrell stated he has corrected his copy and removed
Carmen's name.
District Manager Curtis Shook asked if there were problems with the traditional
financing,does this agreement leave the district in the lurch.
District Counsel Bill Farrell stated the district would have to ask for a third
extension.A closed placment could be renogiated with the bank if desired,but
the staff of Wells Fargo does not to be as open as First Interstate was to this
type of agreement.Wells Fargo is not after municipal business,while First
Interstate was.He does not believe the bank would foreclose on the loan if
something disastrous happened,he believes they would extend the loan.
Mrs.Surra stated that these are only assumptions.
District Counsel Bill Farrell stated he has only been able to get assumptions
from Wells Fargo,as no policy maker will has said anything.He stated if Mr.
O'Connor were here, he would assure them that under no circumstances would Alden
be incapable of at least financing the repayment,the only issue would be how
much over the repayment.
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
Page 2 of 6
Mrs.Barker moved that Resolution No.1997-001,as written on the agenda,be
aprpvoed.Mrs.Surra seconded the motion.The motion passed unanimously.
6.Discussion and action on District Manager recommendations for use of bond
proceeds.
District Manager Curtis Shook briefed the board on this item.He recommended a
$6 million loan over a twenty year period in order to put the bond package
together.He recommended seven different items to be covered by the loan.They
are two (2)million gallon storage tanks (one at the well area in the Public
Works yard,the other at the current storage facility at Buena Vista and 16th
Avenue),estimated at $400,000 each;and a rehabilitation of Well #5 for
approximately $43,000.
District Operating Manager Doug Dobson stated this rehabiliation could allow the
well pump 800 gallons a minute,instead of the current 640 gallons now.
District Manager Curtis Shook stated the fourth item would be an electrical
backup system for $75,000,the fifth item would be $500,000 in recharge credits
and $32,000 is proposed for a monitoring system.
District Operating Manager Doug Dobson stated the monitoring system would monitor
the wells,the booster pumps and the tanks,and i t would notify them of a
problem,instead of waiting for a customer to notify them of no water.
Mr.Durbala asked if a computer and software are included.
District Operating Manager Doug Dobson stated it is included.This system will
call the on call person to notify them of a problem.
District Manager Curtis Shook stated the final item is for system upgrades and
improvements and line extensions for $550,000, bringing the total borrowed to $6
million.
Chairperson Coleman asked i f the water treatment plant was included in that
figure.
District Manager Curtis Shook stated it was not.He does not believe now is the
time to build a water treatment plant,but a time to protect the groundwater
capacity through the recharge credits and the improve the system.He estimates
the treatment facility three to five years down the road, wherein he believes the
cash flow will allow for more borrowing at that time.
Mr.Hendricks asked if they looked at how much it would cost now as compared to
five years from now.
District Manager Curtis Shook stated they had added an inflationary factor,but
the bottom line is the district is limited in the funds they can borrow at this
time, and the $6 million they should have no problem in getting amortized.Right
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
Page 3 of 6
now the aquifer and the groundwater need to be protected,and there really is no
use for the treatment plant for at least three more years.
Mrs.Barker asked if these were listed in order of priority.
District Manager Curtis Shook stated they are listed in order of priority.
Mrs.Barker asked how long it might take to accomplish these items.
District Manager Curtis Shook stated these should be finished over the next one
to two years.
Mr. Durbala asked if any of the upgrade is going to be on Southern where the road
is torn up now,or will i t be torn up again at a later date.
District Manager Curtis Shook stated it is anticipated to be in the subdivisions
where the mains and lines are undersized pipe and are having breaks and leaks.
Mr. Durbala stated he does not want to see the same streets dug up,repaired and
resurfaced every six months for two years.
District Manager Curtis Shook stated they will try and anticipate that.
District Operating Manager Doug Dobson stated the priority storage tank will be
at Buena Vista and 16th Avenue.
Chairperson Coleman asked i f action was needed on this this evening.
District Manager Curtis Shook stated he would like the board to authorize putting
together a bond offering to include these items.
Mrs. Barker moved that we give the district manager the authority to put together
a bond package including these items.Ms. Urich seconded the motion.The motion
passed unanimously.
7.District Manager report.
District Manager Curtis Shook stated Well #6 at the Public Works yard is now
complete as far as construction,however three more things have to happen before
it can be pumped into the system.US West has to tie the system in, which takes
5-7 days,and that has already been scheduled.A report by ICON which has to be
completed.He asked Doug Dobson what the report was about.
District Operating Manager Doug Dobson stated the report is on the steps taken
during the construction of the well,which has to meet the ADEQ requirements,
plus the initial testing on the water quality.
District Manager Curtis Shook stated that a sample was high on one element,and
they have to submit a blending plan to ADEQ,which involves testing being done
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
Page 4 of 6
right now and some engineering.They will be meeting with Bill Plummer tomorrow
to put together a blending plan.It is not an item of concern as they were
always looking to blend.
Chairperson Coleman asked if a time line was available.
District Manager Curtis Shook stated it would be a guess.
District Operating Manager Doug Dobson stated they hope to have the rest of it
completed by the time US West has it tied in.They have run the will off and on
since last Thurdsay for as long as 36 hours straight.He is hoping it will be
finished in seven working days.
District Manager Curtis Shook stated the final training had been received today
on the system analysis.I t is a model that allows them to determine the
pressures needed at different points.It will help them to determine what pipe
sized will be needed in new developments.It analyzes flows for fire protection
and it gives us an idea as to the priority areas.The program has been loaded
into the computer and the system is available for use.
District Manager Curtis Shook stated he believes they are making significant
progress towards establishing the capacity and the quality of the water the
utility will provide to its customers.He believes they have been proactive as
the what will be required in the future.
Mrs.Surra commended the staff that has been dealing with the water district
issues.Things have been addressed and accomplished in an orderly manner,with
extreme good sense and controls placed everywhere.
8.District Treasurer report.
District Manager Curtis Shook stated the treasurer was sick.He pointed out the
board had received a report on the financial statement as of January 31,and he
believes it is self-explanatory.A payment of $50,000 has been made to the city
so far this year.When the district does amortize,the city will have been paid
the principal and a reasonable interest.On January 31,1996,the district had
$220,000 in the bank,which has been increased by $100,000 one year later.We
have made the first payment to Pinal County for taxes from the budget,it has not
been borrowed.He is satisfied with the cash flow, but he believes current staff
will have to provide management for the foreseeable future to keep the personnel
expenses down.There will come a time when the budget is healthy enough to cover
additional personnel.
9.District Counsel report.
None.
10.Adjournment.
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
Page 5 of 6
Adjournment at 6:35 p.m.
Douglas CO9eman
Chairperson
Kathleen Connelly
District Clerk
WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the
minutes of the regular meeting of the Water Utilities Community Facilities
District of the City of Apache Junction, Arizona, held on the 3rd day of February
1997.I further certify that the meeting was duly called and held and that a
quorum was present.
Dated this 4th day of February,1997.
Kathleen Connelly
District Clerk
Water Utilities Community Facilities District
Meeting Minutes of February 3,1997
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