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HomeMy WebLinkAbout1998-09-14 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING SEPTEMBER 14,1998 The regular meeting of the District Board of the Water Utilities Community Facilities District (Apache Junction Water Company),City of Apache Junction, Arizona,was held on September 14,1998,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Coleman called the meeting to order at 6:02 p.m. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson Anne Surra (arrived 6:05 p.m.) Mr.R.E.Eck Mr.Joe Durbala Ms.Carol Urich Mr.John Insalaco Mr.Dietz Staff Present: Others Present: Curtis Shook,District Manager George Hoffman,Assistant District Manager Keith Lewis,District Finance Manager Kathleen Connelly,District Clerk Bill Farrell,District Counsel Doug Dobson,District Operations Manager John White,District Accountant APPROVAL OF MINUTES OF JULY 20,1998 )Mr.Durbala MOVED TO ACCEPT THE MINUTES OF THE JULY 20,1998. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. MOTION FOR EXECUTIVE SESSION ON MONDAY, SEPTEMBER 14,1998 )Mr. Durbala MOVED FOR AN EXECUTIVE Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 1 of 9 SESSION IN THE CITY CONFERENCE CENTER NOW. VOTE:Unanimous. The motion carried. meeting for an executive session. meeting. Mr.Insalaco SECONDED THE MOTION. Chairperson Coleman recessed the Chairperson Coleman reconvened the PUBLIC HEARING ON PROPOSED FINAL BUDGET FOR FISCAL YEAR 1998-99 )City Manager Curtis Shook briefed the board on the item.He commented the initial budget had been presented to them over a month ago and since then the water availability issue has come up. Staff now proposes creating a water superintendent position and add that salary and position into the water utility personnel system.They would like it to be a half year position for this year for hire beginning January 1,1999,with $30,180 added in the administration side for the position.The money would encompass salary and benefits. at the bottom would have to be amended. would have to be amended. budget begins for 1998-99. would be for the actual fiscal year. Chairperson Coleman asked if the totals City Manager Curtis Shook stated they Vice Chairperson Surra asked when this City Manager Curtis Shook stated it Vice Chairperson Surra asked if this should really be a three quarter year position if i t was hired as early as October. Finance Director Keith Lewis stated the year is from July to June 30.The budget does not have to be officially adopted until October. District Manager Curtis Shook commented the January 1 hiring date would constitute a 6 month position.It will be a full time position thereafter. Vice Chairperson Surra asked if they Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 2 of 9 were interested in additional money in hopes of getting the position filled now. District Manager Curtis Shook stated after passing the budget,advertising and interviewing they might be able to get someone before that, but the target date is January 1, though the board may wish to move that up. Vice Chairperson Surra commented they might be interested in increasing the dollars allocated in case they could hire someone earlier than the target date. Ms.Urich suggested adding some additional funding,as much as $1,000,under Business Conferences,and possibly some additional funding under Training.She added they might want to increase Maintenance of Software since they already have an actual expense of $1,920 thus far.She would like to see an additional $2,000 there. District Manager Curtis Shook believed those would be good additions.There had been an oversight on the software,and there should be money for training and conferences for the superintendent. Mr.Dietz asked what COLA stood for. Distri ct Manager Curtis Shook answered it stands for cost of living allowance. Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and reopened the item to board discussion. Mr. Dietz asked about the approximately $400,000 difference on the district manager's report versus the finance manager's report on the Operating Expenses under Administration for the financial report through August 1998. District Finance Director Keith Lewis stated that comes from things that have been done since the audit.One set of figures are actual,the other set are estimated.They are still doing things that change the original estimated figures because of the audit. Mr.Dietz asked if the one was the up to date version. stated that was correct. were incorrect. District Finance Director Keith Lewis Mr.Dietz asked if the other figures District Finance Director Keith Lewis Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 3 of 9 stated they are incorrect,and it was stated that those figures were unaudited. Mr. Dietz stated he is still confused. There is still almost a $400,000 difference and he would like to know where it went. District Accountant John White stated the report on the blue paper is based on generally accepted accounting principles,or what is normally presented in the annual financial statement.A budget statement is more of an actual report on the cash outlays.Under the administration portion there are several different expenditures which are not reflected on the generally accepted accounting principles report.The two largest ones are the bond principle cost of almost $214,000 and the intergovernmental agreement with Pinal County for back property taxes at a cost of $175,000.These offset liability and are therefore not included on the generally accepted accounting principles report. Mr.Dietz stated the one report was then current and correct. Vice Chairperson Surra stated they are both current and correct;they are just two different types of reports. District Finance Director Keith Lewis added budget statements for a water district are entirely different from municipal budget statements.These are private entities like businesses,the city is not.The budget was prepared like the one for the city. Mr. Dietz asked how the water district was run. District Finance Director Keith Lewis answered it is run as a business. District Manager Curtis Shook commented audited statements are different from the way the city puts together the budget. One is a representation or plan for spending for next year,the other is an unaudited budget that is on audited format sheets that do not include some figures due to generally accepted accounting procedures. Mr. Dietz stated he had been confused as he did not know the difference between the two reports.He also mentioned that Machine Equipment on the last page is listed two or three times under Capital Outlay,Item 27 and Item 11.He was curious as to why that was listed three times. District Finance Director Keith Lewis stated Item 11 is for supply type items that you have for maintenance purposes, Item 27 is for when something is sent out for service to someone,and under Capital Outlay it is to go out and buy new machinery. Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 4 of 9 Chairperson Coleman closed the item with no further discussion. RESOLUTION NO.1998-001:ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 1998-99 )Chairperson Coleman called for a motion. Vice Chairperson Surra MOVED THAT WE ACCEPT THE PROPOSED FINAL BUDGET FOR FISCAL YEAR 1998-99 WITH THE AMENDMENTS TO THE AREA OF ADMINISTRATION UNDER PERSONNEL,ADDING LETTER D,WATER SUPERINTENDENT,FOR JANUARY 1 THROUGH JULY AT $30,100 ADDITIONAL MONIES AND ONE QUARTER ADDITIONAL TO THAT,ADD ANOTHER $15,000 IN CASE THEY GET TO HIRE HIM SOONER FOR A TOTAL OF $45,000;AND UNDER ITEM NO.17,FOR BUSINESS CONFERENCES AND ITEM 18 FOR TRAINING,TO ADD AN ADDITIONAL $1,000 IN EACH OF THOSE CATEGORIES;AND AMENDING NO.21 FOR MAINTENANCE OF SOFTWARE,AN ADDITIONAL $2,000,WITH THOSE AMENDMENTS MADE TO THE BUDGET. Ms.Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND POSSIBLE ADOPTION OF REVISED CHARGES AND POLICIES FOR SERVICE LINES AND METER INSTALLATION, RECONNECTION FEES,METER DEPOSITS, SERVICE REESTABLISHMENT,RETURNED CHECKS METER REREADS AND CUT LOCK FEES )District Manager Curtis Shook briefed the board on this item.This is in regards to development fees.There has been talk of water shortage.The district needs to look at drilling a third well and developing the CAP allocation by getting it treated.These things will cost additional monies.The board's policy is not to have the current rate holder pay for the additional capacity where it can be avoided.Staff is asking the board to consider the adoption of some water development fees for the purpose of putting aside money in a capital reserve trust to continue to develop the water utility and assure sufficient water supplies.Current platted development will add between 1,600 and 1,800 new customers over the next three years.He asked Doug Dobson to explain how the formula for the development fee was arrived upon. District Operating Manager Doug Dobson stated he looked where he thought the district would be in three years.He believes the system will double.A well will be needed which is currently valued at $400,000,plus another storage tank costing $250,000.The one on the agenda tonight has a booster station with i t and therefore costs more.That booster station can be used for both storage tanks.A CAP water treatment plant at a cost of $2,000.000 will be needed.That cost could be lowered i f it were Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 5 of 9 partnered with Mesa or Arizona Water Company.He took the amount of funds that the district would need,divided it by the customer base,and determined the fee to be $896.That would be for a 5/8 by 3/4 inch size meter.He used the percentage of additional miter flowing through larger meters as the same percentage to increase the amount for those larger meters. Vice Chairperson Surra asked if the monies collected can be used to recoup and pay for some of the bonds already expended on recent additions to the system, or would they have to wait until the building had already been completed. District Operating Manager Doug Dobson stated he is already looking at another well,and that process could take another year.When he receives the okay to drill the well,he will drill it at that time and these monies could be used to finance that well.The money he has already put out to design the well could be reimbursed from the monies. Vice Chairperson Surra commented the current users should not have to pay for it by having an increase to their rates if these fees are implemented. DistrictOperatingManagerDougDobson stated the new people would pay for the new development. Mr.Eck asked if more would be coming back to them on all of this. District Manager Curtis Shook stated they would.They wanted to acquaint the board with the issue and begin a public discussion on it this evening.This fee and the other policies and procedures will be brought back with a board meeting in two or three weeks. Vice Chairperson Surra suggested giving a direction to staff at this time to prepare all of the documents that they would want to peruse and to have a public hearing as part of the agenda item.She would like to see the public hearing published. Mr.Durbala agreed with Vice Chairperson Surra.He would also like to see a public hearing on this.He suggested October 5 for the meeting.He asked if the advertising could be accomplished in time. District Clerk Kathleen Connel ly asked what he meant by advertising. Mr.Durbala meant advertising in the paper. District Manager Curtis Shook stated they can find a way to bring the issue to the forefront so that the papers will Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 6 of 9 write about it. Mr.Durbala wanted to make sure that the public would have an opportunity to speak. District Manager Curtis Shook suggested a possible box advertisement in the local papers as well. Mr.Eck requested they receive the revised changes on the other items in ample time to be able to review them. District Manager Curtis Shook stated they would not schedule a meeting until those had been given to the board. Vice Chairperson Surra MOVED THAT WE SO GIVE THAT DIRECTION TO STAFF (TO PREPARE ALL OF THE DOCUMENTS THAT THEY WOULD WANT TO PERUSE AND TO HAVE A PUBLIC HEARING AS PART OF THE AGENDA ITEM: AND THE PUBLIC HEARING SHOULD BE PUBLISHED). Mr.Durbala SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARD OF BID FOR 1,000,000 GALLON STORAGE TANK ) )District Manager Curtis Shook briefed the board on the item.The tank has been anticipated to be able to store an additional 1,000,000 gallons.It will be located at the Public Works Yard. District Operating Manager Doug Dobson stated this one would include the booster station to be used in conjunction with the additional tank required in the future. Mr.Eck asked if there would be a booster station as soon as this tank is installed. District Operating Manager Doug Dobson responded there will be a booster station with it. Mr.Eck asked if it was included with this bid. District Operating Manager Doug Dobson stated that was correct. Mr.Dietz stated it would be finished once they put up the other 1,000,000 gallon tank. Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 7 of 9 District Operating Manager Doug Dobson stated the new tank should cost about $250,000 and he would then have two tanks plus a booster station instead of just one tank. Chairperson Coleman closed the discussion and called for a motion. Mr.Eck MOVED TO AWARD THE BID TO SCHUFF STEEL COMPANY IN THE MOUNT OF $413,688 FOR A NEW 1,000,000 GALLON STORAGE TANK. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. ADJOURNMENT Mr.Dietz SECONDED THE MOTION. )Chairperson Coleman adjourned the meeting at 7:25 p.m. ACCEPTED THIS 5TH DAY OF OCTOBER ,1998,BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY),CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 5TH DAY OF OCTOBER ,1998. Douglas Coleman Chairperson ATTEST: Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 8 of 9 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 14th day of September,1998.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 15th day of September,1998. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 14,1998 Page 9 of 9