Loading...
HomeMy WebLinkAbout1998-03-02 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION,ARIZONA MARCH 2,1998 -6:00 P.M. BOARD OF DIRECTORS ROLL CALL: Chairperson Douglas Coleman Vice Chairperson Anne Surra Mr.R.E.Eck Mr.Joe Durbala Ms.Carol Urich Mr.John Insalaco Ms.McClain MEETING MINUTES Others Present: Curtis Shook,District Manager George Hoffman, Asst. District Manager Kathleen Connelly,District Clerk Doug Dobson, District Operating Manager Bill Farrell,District Counsel Keith Lewis, District FinanceDirector John White,District Accountant 1.Call to order. 2.Roll call. 3.Motion for an Executive Session on Monday, March 2,1998, at 6:00 p.m., at the City Conference Center,1001 N.Idaho Road,Apache Junction, Arizona. Mr.Durbala moved to approve an executive session in the city conference center at this time.Vice Chairperson Surra seconded the motion.The vote was unanimous.Convene executive session. 4.Reconvene regular meeting. 5.Approval of minutes of December 1,1997,and February 3,1998. Vice Chairperson Surra moved to approve the minutes of December 1,1997,and February 3,1998.Ms Urich seconded the motion.The motion passed unanimously. 6.Discussion on updates to district policies. District Manager Shook stated this is an acknowledgment of receipt of district rates, policies and procedures which will be brought back to the board for future discussion and action. Mr.Eck asked if this deals with the question of line extension. District Manager Shook stated it does. Mr.Eck stated he wants to be sure the district will be compatible with other water companies in the East Valley on that issue. District Manager Shook commented the proposed policy is under "Water Main Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 1 of 6 Extension Requirements",and that is how they are currently conducting their line extensions. Mr.Eck stated he is concerned about an end lot having to go completely across the lot with an extension,as he has not found a water company that requires that. Ms. McClain clarified that these policies are not in effect; they are what staff is asking to implement. There was general discussion on the current policy for main line extensions. Chairperson Coleman commented with the property owner having to extend the line to the end of the property,an adjacent property owner does not have to get permission from the other property owner to dig on that property to extend the water line. Ms.McClain stated they would not have to get permission as it is an easement. Mr.Eck was concerned it may cost the "end"property owner another $10,000 to extend the line to the end of that property. Mr.Durbala was concerned if someone bought a property next to the end property at a later date. Mr.Eck commented he still believed the district should be comparable to other water companies;he did not think they should exceed them. Mr. Durbal a stated he would like to see some figures on what other companies do. Ms. McClain reminded everyone that these are for the board to study and they are not in effect. District Manager Shook stated some of the policies given to them are proposed changes to current practices,including changing to a public water company status.The Arizona Corporation Commission sets up the rules for a private water company,whereas a public water company may have its own policies within the law. Staff felt the rate sheet,the security deposits,the establishment charge and the delinquency disconnects needed to be changed from the current policies.The water main extension requirements are a formalization of a policy in use currently.This policy is cost effective for the utility and its customers to prevent loop lines,dead end lines and property disputes. Ms.McClain reiterated that the water lines run in the easement and not on private property.A neighbor cannot prevent another from running water lines in that easement. District Manager Shook stated that is not true all the time.Arizona Water Co. would like to do what the district is proposing but they are restricted by the Arizona Corporation Commission.In most cases there would be no problem,but Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 2 of 6 they learned from Arizona Water Co.that there have been disputes. Ms.McClain asked if there were water lines on private property. District Manager Shook stated there have been several legal disputes in the extension of water lines,such as in Oracle. Ms.McClain asked if they should be worried about something that occurred in Oracle. District Manager Shook stated the board has the authority to change policy.The current policy is there because they needed a consistent policy,and they have required the extensions to be to the back lot line of the property since the beginning of the district to current day. Mr.Durbala stated they just received this and should not really be commenting on it until after they have studied it. District Manager Shook stated this was just being presented to them for review. It will be discussed several times before any action will be taken. Ms.McClain asked when the district took over the water company. District Manager Shook stated they took over the management in October of 1995. The purchase went through in February of 1996. Mr.Durbala requested information be given to them "way"before the meeting. Chairperson Coleman stated the information was handed out tonight for discussion at a later date. 7.Approval and Authorization for a deposit of $5,000 for purchase of Central Arizona Project land. District Operating Manager Dobson stated they have to pay a $5,000 deposit before the state will put the land up for bid.This is for 6.4 acres for the water treatment plant. Chairperson Coleman asked if there was a total amount,as this is just to put it up for bid. District Operating Manager Dobson stated they do not have a total amount, but the deposit will be applied to the amount of purchase,or it may cover the total amount. Vice Chairperson Surra stated she did not believe $5,000 would buy 6 acres of land. District Operating Manager Dobson stated this is the access off of the Central Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 3 of 6 Arizona Water Project Canal ,and it is cheap land. Vice Chairperson Surra asked i f the money was refundable if the land is not bought. District Operating Manager Dobson stated it would be except for the money used to pay for an artifact study and environmental study. Chairperson Coleman closed the discussion and called for a motion.Vice Chairperson Surra moved that approval and authorization be given to the district operating manager to enter a deposit of $5,000 towards the possible purchase of Central Arizona Project land.Mr.Insalaco seconded the motion.The motion passed unanimously. 8.Approval and Authorization to purchase two vehicles from Chapman Chevrolet for a cost of $14.897.00 each. District Operating Manager Dobson stated they had $20,000 per vehicle in the budget.They were authorized to purchase two vehicles.He commented he can get two full size Chevrolet work trucks via state bid from Chapman Chevrolet for $14,897 each,including tax.This saves the district $10,206 in vehicle purchases.They are standard 1998 long wheel base trucks and will replace one vehicle with about 140,000 miles and another having about 120,000 miles. Ms.McClain asked what they would do with the old ones. District Operating Manager Dobson stated they would be sold at the auction. Chairperson Coleman closed the discussion and called for a motion.Ms Urich moved that approval and authorization be given for the purchase of two vehicles from Chapman Chevrolet for a cost of $14,897 each.Ms.McClain seconded the motion.The motion passed unanimously. 9.District manager report. None. 10.District treasurer report. District Finance Director Lewis stated the amount due to the city has been lowered.Projections on making payments for the bonds show that they should be able to make those payments over the year without hurting the district greatly. They will have to dip into the carryover,but not by a large sum.He stated they had a $299,000 excess from last year.They are currently trying to finalize the distribution of job duties as recommended on the audit. Vice Chairperson Surra asked under what category of Expeditures for Salaries and Professional Services the di rector and manager are placed. Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 4 of 6 District Finance Director Lewis stated they do that at the end of the year,and it would be placed under Professional Services. Vice Chairperson Surra asked what the amount under Professional Services was for. District Finance Director Lewis stated it is for the legal services, engineering services and consultants that the district has. Vice Chairperson Surra asked i f the $73,172 on the previous year's report included all professional services,including management and audit services. District Finance Director Lewis stated it does for this time of year;at the end of the year it will be much more. District Manager Shook asked if any money was transferred last year. District Finance Director Lewis stated they did but he would have to look up the amount.He recalls doing a work paper that included the district manager,the district operating manager and the director of finance. Vice Chairperson Surra asked if the $73,172 was from July of 1997 to December of 1997 and included all of the professional services,not only the financial director and the day to day operations. District Finance Director Lewis stated it did not include them at that time.It goes in on the June report for the end of the calendar year report. Vice Chairperson Surra asked if they could have the figure for operations given to them. District Manager Shook stated they could break that out.He does not believe there are any charges for management but there are charges for legal,hydrology and engineering services. Vice Chairperson Surra stated she just wanted to know the charges for the financial director, the district operating manager and the district manager.She understands the rest, she just wants to know what part of it is city services for management. District Finance Director Lewis stated he would go back to his work papers for the end of the year and get that information. Vice Chairperson Surra stated i t could just be given to them in a memo. 11.District Counsel report. District Counsel Bill Farrell stated Senate Bill 1266 going through the legislature deals with one of the new aspects of the Uniform Plumbing Code relating to backflow prevention devices.The bill passed through the senate with Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 5 of 6 a vote of 18-11 and is now in the house.He is monitoring the bill but no action has been taken in the house thus far.If adopted,it will require the district to spend a meeting going over those new requirements as it will impact the city's development processes and the district's operations.It will also require their meeting with the construction industry to determine what will need to be done to resolve any future problems.He added they are working with the district operating manager to make sure the district is not taken advantage of by the public when bidding on the land for the water treatment plant. 12.Adjournment. Adjournment at 7:23 p.m. ouglas Chairperson eman 9)A A o-tittge—Ae.,Le athleen 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 2nd day of March, 1998.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 3rd day of March,1998. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of March 2,1998 Page 6 of 6