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HomeMy WebLinkAbout1998-10-05 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING OCTOBER 5,1998 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 October 5,1998,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 6:00 p.m. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson Anne Surra Mr.R.E.Eck Mr.Joe Durbala Ms.Carol Urich Mr.John Insalaco Mr.Dietz Staff Present: Others Present: Curtis Shook,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 )Vice Chairperson Surra MOVED TO ACCEPT THE MINUTES OF THE SEPTEMBER 14,1998. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. MOTION FOR EXECUTIVE SESSION ON MONDAY, OCTOBER 5,1998 )Vice Chairperson Surra MOVED FOR AN EXECUTIVE SESSION IN THE CITY CONFERENCE CENTER. Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 1 of 8 VOTE:Unanimous. The motion carried. meeting for an executive session. meeting at 6:30 p.m. Ms.Urich SECONDED THE MOTION. Chairperson Coleman recessed the Chairperson Coleman reconvened the RESOLUTION NO.1998-002:DISCUSSION AND POSSIBLE ADOPTION OF FEES FOR NEW SERVICE FOR VACANT RESIDENTIAL AND COMMERCIAL PROPERTIES WITHIN THE SERVICE AREA )District Manager Curtis Shook briefed the board on the item.He commented that the discussion of new rates and changes does not call for any increase in monthly rates for existing customers. The district has a water supply of 1,607 acre feet of water available,with an additional Central Arizona Project allotment of 2,913 acre feet of water.That allotment would have to be treated for i t to be potable.The demand has increased from 825 acre feet of water in 1995 to 997 acre feet of water in 1997. In the first 9 months of 1998.945 acre feet have been used, translating to 1,260 acre feet for the year.By using the average consumption of 4.22 acre feet per day used and multiplied by the 1,600 new customers projected, the additional need will be 675 acre feet of water over the next 3-5 years.The reserve is not enough,leaving a deficit of 328 acre feet of water.The district has applied to State Land for an underground water well at the Guadalupe and Tomahawk alignment and they are currently researching possibilities with the City of Mesa about the building of a Central Arizona Project treatment plant.The district needs to be ahead of the curve and to develop the resources.The development fee and growth should pay for the water resources that it will require and that it not be the current rate payer that has to pick up the costs for growth.He requested the board to consider a water development fee similar to other public and private water utilities.It would be a capital development fee. Chairperson Coleman asked for any questions by the board.There being no questions,he opened the public hearing on the item. Mr.James Bankhead,1440 N.Muleshoe Road,Apache Junction,addressed the board.He was concerned about what would happen to those in the outlying areas.He is approximately 1,200 feet from Arizona Water Company lines and they had last quoted him a cost of about $20,000 in order to get water.He was also concerned about the additional wells causing existing private wells to run dry.He has replaced all of his equipment due to a well running dry only to find the problem was in the aquafir.There are times when he has had to wait 2 or 3 hours to get water. Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 2 of 8 Chairperson Coleman closed the public hearing with no one else wishing to speak.He called for any discussion by the board. Vice Chairperson Surra stated a valid concern had been expressed.She requested a comment from the district manager. District Manager Curtis Shook and Mr. Bankhead discussed where his property was located. Bankhead's well. feet deep. Ms.Urich asked how deep was Mr. Mr.James Bankhead replied it is 330 District Manager Curtis Shook stated he is in the middle of Arizona Water Company's area, which is different from the district. Mr.James Bankhead commented he was referred to the district by the Arizona Water Company.When he called the district,he was referred back to the Arizona Water Company. DistrictManagerCurtisShookcommented any new additional groundwater wells that are drilled go through rigorous state inspection,including the draw on the current aquafir.The next well will be drilled far south of his location,and they would have to prove that it would not affect any existing wells.He suspects that any new groundwater wells will be scrutinized by the state,which should protect those with individual wells.He suggested Mr.Bankhead talk to Arizona Water Company as they have some wells in his area.He commented he believes his concern is valid and that the state is concerned about the same thing.He added the district is taking their Central Arizona Project allocation and pumping it back into the aquafir for groundwater credits.They have been replenishing the water in their area. Chairperson Coleman closed the discussion and called for a motion. Vice Chairperson Surra MOVED THAT RESOLUTION NO.1998-002,FOR THE ADOPTION OF FEES FOR NEW SERVICE FOR VACANT RESIDENTIAL AND COMMERCIAL PROPERTIES WITHIN THE SERVICE AREA,THAT THE FEE SCHEDULE AS PRESENTED TO US BE ADOPTED THIS EVENING,AND THAT WE MOVE THE DATE FOR IT TO BE EFFECTIVE TO DECEMBER 1,1998. Mr.Dietz SECONDED THE MOTION. Ms. Urich MOVED TO AMEND THE EFFECTIVE DATE TO JANUARY 1,1999.The amendment failed for lack of a second. Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 3 of 8 VOTE:Unanimous.(On original motion.) The motion carried. RESOLUTION NO.1998-003: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 the item.He gave a brief history of the water company. He commented the district's structure allows for them to change some of the rules and regulations as well as the inherited fees.This item was discussed in March and he is requesting the board to adopt the new rates and procedures.It will eliminate some procedures originally practiced by Consolidated Water Company in order to more closely resemble a public utility. Chairperson Coleman called for any questions by the board. Vice Chairperson Surra commended Doug Dobson for his preparation on the changes and his understanding on what was being added. District Manager Curtis Shook outlined the major areas of changes:the development fee for service lines and meter installations;the minimum monthly charges would remain the same other than the addition of an 8"meter;service chages and reconnection fees;meter tests; deposits on 1" meters and up;asphalt cuts and replacement; water main extensions and procedures;standardized pipe line materials;field verifications; standardization of water line installation;valves;backflow prevention; standardization for fire hydrants and couplings;water services installation; water meters; waterline protection; guidelines for separation of sewer and water mains;main extension agreements;engineering and plan submittals; maps/reproducable submittals;permitting in public rights -of -way;and standardization of minimum line standards for extensions. Mr.Dietz asked if they would be allowed to use PVC for pipeline materials. District Operations Manager Doug Dobson stated it would be used in certain places such as for large mains and transmittal lines from wells. problems with that leaking. Mr. Dietz asked if they were having any District Manager Curtis Shook stated Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 4 of 8 the intention is to use ductile where you have your main lines.It will only be allowed in certain areas where i t is appropriate. Mr.Dietz commented he was concerned about the repair work on the road. Mr.Eck requested an amendment to the main sizing location,page three,item one.He would like to add "that a district manager or his designee shall have the discretionary authority to determine if circumstances warrant the waiver of this extension policy" after "at the property owner's expense"in the last sentence.This is to eliminate a back lot having to extend the line to the end of the property. Mr.Dietz agreed someone should not have to put in a line if,for instance,their property line abuts a mountain. Vice Chairperson Surra commented Mr. Eck had brought that up before and the board had seen sense in his suggestion. Mr. Eck commented if it were inwriting the district manager would have that authority. Vice Chairperson Surra agreed it could be done on a case by case basis. District Manager Curtis Shook commented they probably would have administratively waived those situations where topography or geography were concerned.This,however,would put it in writing and give them the authority to waive the requirement if the line would not be able to go any further. Vice Chairperson Surra asked if the wording was sufficient. District Counsel Bill Farrell stated it was. Mr. Eck added the same sentence should be added under the next paragraph,under number two,after the last sentence and following "are not allowed in the district's area".This would be for the case where there might be a 3" or 4"line instead of a 6" line for a single lot.He could not see requiring 6"line for only 200 feet or less. Vice Chairperson Surra asked i f i t depended on the length and where it was going. Mr.Eck stated it does,and it would have to be on an individual basis. Mr.Durbala asked if a 6"line would Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 5 of 8 still be needed if it was going to 2 or 3 different properties. Mr.Eck stated a 6" line would not be required if it were fed by a 3"line.He does not believe the situation would come up frequently. Mr.Durbala asked if they would have to stay with the 4" or 6"line if that is what is coming into the property. Mr. Eck stated that was correct.This would be discretionary but it would cover the situation in case it comes up.He then read the sentence again that he wished added to the resolution. District Clerk Kathleen Connelly clarified where that sentence was to be placed. Mr.Eck commented he hoped the $15 meter reread fee was never enforced. Chairperson Coleman opened the public hearing on this item.There being no one wishing to speak,he closed the public hearing and called for any further board discussion.There being no further discussion,he called for a motion. ViceChairpersonSurrastatedREGARDING RESOLUTION NO.1998-003,I MOVE THAT WE ACCEPT AS PRESENTED WITH THE EXCEPTION OF PAGE THREE,UNDER "INITIAL REQUESTS FOR A MAIN EXTENSION","THE MAIN SIZING AND LOCATION,NUMBER ONE",ADDING THAT SENTENCE THAT WAS DICTATED TO THE CLERK AT THE END OF "PROPERTY OWNER'S EXPENSE",AND UNDER NUMBER TWO,AFTER THE LAST SENTENCE ENDING IN "ALLOWED IN THE DISTRICT'S AREA",THOSE DISCRETIONARY AUTHORITY STATEMENTS. Mr.Durbala SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND POSSIBLE DIRECTION TO DISTRICT COUNSEL AND DISTRICT CONSULTANT TO PREPARE REPORT ON PURCHASING SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO.1 WATER CREDITS ) )District Counsel Bill Farrell stated the city attorney and he met with the counsel for the Superstition Mountains Community Facilities District No.1 over a week ago.They discussed the possibility of converting the effluent that they discharge into a consumable water product and the ability of the water district to purchase those credits from them if they become available.The water district offered to assist them in perfecting those rights due to their economic situation.This will enable a Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 6 of 8 price to be determined which will allow a recommendation to be placed before both boards.He requested the board authorize him to retain the district consultant, Mr.Plummer, and work with Doug and he to determine if the effluent discharge can be converted into a groundwater right,and then that right transferred by contract to the water district.They would hope to return in the next 30 to 60 days with a recommendation on whether water could be purchased. Chairperson Coleman called for any questions from the board.There being no questions,he called for a motion. Vice Chairperson Surra SUGGESTED THAT DISTRICT COUNSEL AND THE DISTRICT CONSULTANT PREPARE A REPORT ON PURCHASING SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT WATER CREDITS,AND RETURN IN THE TIME FRAME OF 60 DAYS TO THE WATER BOARD AND GIVE US THAT PRESENTATION. Mr.Durbala SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT District Manager Curtis Shook complimented the staff on the exceptional job they did on the statistics pulled together for the water use and projected water use, in addition to changing the rules and procedures.He then complimented the board for being forward and progressive for instituting the water development fee.He commented they are looking at efficiencies in the district to give the district more water capacity,specifically changing out large sections of older line. They will also be looking at new meters,and he reminded them of the pumped Central Arizona Project water bringing replenishment credits and the district's attempt to purchase sewer effluent water for groundwater credits.They are looking to recapture lost water and create new credits. DISTRICT TREASURER REPORT District Finance Manager Keith Lewis stated he had given them the report for August.They will do the budget accounting basis with a format that will make more sense to everybody.There is no report for September at this time. DISTRICT COUNSEL REPORT None. ADJOURNMENT ) )Chairperson Coleman adjourned the meeting at 7:08 p.m. ACCEPTED THIS 16Tit DAY OF NOVEMBFR ,1998,BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 7 of 8 JUNCTION WATER COMPANY),CITY OF APACHE JUNCTION,ARIZONA. SIGNED AND ATTESTED TO THIS 17TH DAY OF NOVEM ATTEST: Kathleen Connelly District Clerk ER ,1998. !Douglas Obleman Chairperson 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 RIEN.Aing of the Water Utilities Community Facilities District of the City of Apache Junction, Arizona, held on the 5th day of October, 1998.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of October,1998. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of October 5,1998 Page 8 of 8