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HomeMy WebLinkAbout1999-07-06 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JULY 6, 1999 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 July 6, 1999, 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 Surra Mr. R.E. Eck Mr. Joe Durbala Ms. Carol Urich Mr. Rick Dietz Staff Present: Mr. John lnsalaco (absent) Curtis Shook, District Manager Kathleen Connelly, District Clerk Jim Cowles, Water Superintendent John White, District Accountant Keith Lewis, District Treasurer Bill Allen, District Water Operator APPROVAL OF MINUTES OF APRIL 5, 1999 ) AND MAY 17, 1999 ) Vice Chairperson Surra MOVED THAT THE MINUTES OF APRIL 5,1999 AND MAY 17,1999 BE APPROVED AS PRESENTED. Mr. Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 1 of 17 DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 1999-2000 AND/OR SELECTION OF DATE, TIME AND LOCATION FOR DISCUSSION OF PROPOSED BUDGET ) District Manager Curtis Shook stated to the board that the tentative budget is being presented.He noted that the Water District is on a somewhat different schedule than the regular City budget; however, he added the district does require that the budget be received by a certain date.He stated the budget could be discussed as much or little as the board wants, and that it is his intention to answer any questions.In addition, both the District Operator and District Treasurer are available to answer questions and of course he would put this on for additional hearings, as the board felt necessary. Mr. Eck asked if the cost of water per acre-foot of $75 is the going figure for any well that is on Arizona State land. Water Superintendent Jim Cowles responded that the rate of $75 is the appraisal rate that was presented but they are appealing that rate.The District is meeting with Mr. Plummer and Mr. Grabek of the Sewer District in a possible means of purchasing recharge credits from the Sewer District. Mr. Eck asked if it would be ok if the City of Apache Junction was drilling in the area where we were recharging. Water Superintendent Jim Cowles said yes.The State said if the zone of influence was in the recharged area, the state could prove themselves right to say that the City is actually drawing water that was recharged back into the ground.But, because we supply and sell water to New Magma Irrigation and they're 10 miles away from us, which is out of the zone of influence of the well, we are not actually redrawing the water that was recharged into the ground.It's under appeal right now and the hearing date is set for August.Mr. Cowles added that based upon what Mr. Plummer says, if we can possibly purchase some recharge credits from the Sewer District, we might be able to justify that we are actually drawing the water back out of the ground. District Manager Curtis Shook added that if the State wants us to pay $75 per acre foot, the City probably won't be leasing a well down in that location.The price of water would be too much to produce. Mr.Eck asked if the City has other options. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 2 of 17 Water Superintendent Jim Cowles responded by saying if the board is willing to approve the RFP from Kleinfelder, Inc. he will be asking the company to do a study to identify another area for a well site if the state holds true to $75 per acre foot. Mr.Dietz asked about the land on Ironwood as a possible option. Water Superintendent Jim Cowles stated because of subsidence in the area, drilling a production well next to a canal is not permitted. Ms.Urich was concerned about the water loss and unaccounted water on page 3, although she is aware this information is from a 1998 report. Water Superintendent Jim Cowles agreed it is high.He is hoping with the meter changeout program they have been implementing for 6 -inch meters and now with the 2 inch meter changeout program they can drop that percentage down.Also, he stated there are areas within the district where there are large amounts of leaks at this time.He added that a leak usually doesn't show up for 2-3 days, and it's hard to estimate how long its been leaking underground. Some leaks don't show up for weeks.The District's goal, through a meter changeout program, is to lower the percentage and he is hoping to see a 2% drop this year. Mr. Dietz asked how it would work to put Well #7 on private property. Water Superintendent Jim Cowles responded by saying whoever owns the property owns a lot of rights along with it, unless they have sold them off.He believes the district could negotiate with the property owner provided the water rights are deeded with the property. Mr. Dietz had a question regarding the LTSC's (Long Term Storage Credits) on page 3.He stated that right now the City is purchasing 2,900 -acre feet of water at $52 per acre-foot.The LTSC's involves purchasing 3,000 -acre feet at $44 per acre-foot.He asked if there is a time limit on that, and what happens after the time limit. Water Superintendent Jim Cowles was not sure of a time limit but stated in the Year 2002 or 2003 the State will also be assessing the amount of ground water allotted even if you have the water rights to it. The State will assess what it calls "tax to the water" so by the City purchasing the ground to this water and then putting it into long term water storage, we have it available to us and won't have to pay tax on it until we utilize our allotment. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 3 of 17 Mr. Dietz stated he is concerned about this issue because we are paying $44, but only selling it for $10; thus, we're losing money on it. District Accountant John White commented that previously we were selling water to New Magma Irrigation at $7 per acre-foot and then the following year for $8.Our consultant, Mr. Plummer, advises us that the more we can afford to recharge the better because when the State starts to charge us tax, the rate of water per acre foot will be well over $100.It will pay off in the long run. Mr.Dietz asked when we get the treatment plant up and running if we could use the water ourselves rather than sell it off. Water Superintendent Jim Cowles responded by saying that's correct.He noted since we can't utilize the water at this point, it's in the best interest to the district to sell it at whatever figure we can get which is at this point $10 per acre-foot. Mr.Dietz questioned whether or not there is currently a 10 -year deal in effect. District Manager Curtis Shook commented that it is a perpetuity issue because you have to file initially for an allotment. The only way you can give it up is to either sell it off or to refuse to pay for it and more or less give it back. Mr. Eck asked if you have them, do you have to pay for them, whether you use them or not. District Manager Curtis Shook replied that it's all part of the original contract that the CAP was built under and it's also the source of a number of arguments because there's 7.2 million acre feet that flow out of Lake Powell and ultimately whatever's left winds up in Mexico.There are the Indian Water rights and the Indian Water right claims as well as all the cities, towns and irrigation districts.They are all subject to repayment of what the government put out to build the dam. Mr. Eck asked if this was just for water and whether or not it had anything to do with building ground water credits. Water Superintendent Jim Cowles stated he believed by selling it to New Magma, groundwater credits are earned through the replenishment. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 4 of 17 Mr.Eck asked if with the purchase of 3,000 we are building up credits for safety water, not well water. District Accountant John White stated as he understands it, it will preserve our rights to go ahead and withdraw well water. Mr.Eck asked if that's how we are covering ourselves on well water, through the canal water. District Accountant John White replied yes. Mr. Eck stated that even if we build a treatment plant we will still need backup well water, and hopefully in the future we'll have credits by doing this. Water Superintendent Jim Cowles stated that is correct. He added that we are currently recharging a healthy amount, 2,900 -acre feet a year.Last year we recharged about 1,100 so we're putting away more than twice the amount that we're taking out of the ground. Mr. Dietz asked if that's the 2,919 -acre feet that we purchase a year, with a cap of $52 an acre foot? District Accountant John White replied yes,and noted there are varying rates. Mr.Dietz commented he sees two different figures: 2,919 acre feet at $52 per acre-foot and on page 3 it's 3,000 acre feet at $44 per acre-foot. District Accountant John White said that the incentive rate charge is what we're talking about now and that is $44 per acre-foot. Mr. Dietz asked if those are the ones we sell for CAP. District Accountant John White replied yes.He said 10 years ago when we originally applied, we were committed to paying the maintenance and operation and that's why it's supposed to be $52 per acre-foot.Even if we walk away from the whole thing, we are still bound to pay the $52 per acre-foot he said. Mr. Dietz commented that we are paying for it now and the water's just running down until we get a treatment plant up to where we can actually utilize the water. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 5 of 17 District Manager Curtis Shook said either that or we have talked about parks or golf courses down in that area that can use CAP water directly. District Accountant John White stated we are selling a small portion of our CAP water for construction purposes through a standpipe. selling it for. replied $2 per thousand. per acre-foot on that. water we can sell, the better. Mr.Dietz asked what price are we Water Superintendent Jim Cowles Mr. Dietz noted we are still paying $69 Mr.Eck said the more construction Water Superintendent Jim Cowles stated the construction water at the standpipe is limited because mobile transports are needed.There are only certain kinds of haulers allowed on the roads.Whereas the bigger construction water pullers that hold seven or eight thousand gallons cannot transport the water on the roads and that's unfortunate because those are the people that use a lot of water. Ms. Urich noted on page 2 she was very pleased to see that this was the first full year that we did not have to purchase water from another service provider.She stated she's had some customers lately complain that we've been purchasing water from Arizona Water.She tells them we're not.She noted that the word is not getting out in the community. Water Superintendent Jim Cowles noted that we still have 2 liter sets from Arizona Water that we pay a monthly minimum on which he believes is $1200 a year.He said if someone were to ask if we were a customer of Arizona Water, the correct answer would be yes.Eventhough we're not drawing any water, we have to pay a minimum on those hookups in the event that we should need the water. He said you can say we are a customer, but we're not really drawing the water. Ms.Urich also commented under the plan that two pick up trucks have been requested, and only one is being recommended. She asked if council only approves one truck and not two, will that make a difference. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 6 of 17 Water Superintendent Jim Cowles said no because he still has one in aging fleet that is in pretty decent shape and can be utilized. Mr.Durbala asked if a cost for the treatment plant has been determined. Water Superintendent Jim Cowles replied that it hasn't even been put out for design, but he talked to an engineering firm who said a ballpark figure would be about $2 per gallon depending upon the size of the plant for about a 4.5 million gallon a day plant.In addition, the firm says as the plant gets smaller, the dollar figure would be higher.So for about a 4.5 million gallon a day plant, the cost to build the plant would be about $9 million dollars.That's a rough estimate. Mr. Durbala asked about the $250,000 for the widening of Broadway and whether it includes part of the road construction cost repair or will the repair be done before starting the project. Water Superintendent Jim Cowles stated the road construction repair would be done before the widening of the road begins.It will be done off the right of ways;however there is one point where he believes it crosses to the south side of the road that may be in the pavement.He has discussed with the engineers about possibly realigning this providing there's no conflict. He believes there is a conflict with Southwest Gas.If they do realign the main, it will all be off the right of way. Mr. Durbala asked if the Fire District will be paying any part of that. Water Superintendent Jim Cowles stated that the City would approach the Fire District to see if it can help with the cost of fire hydrants.He stated that 16 hydrants will be installed in the area.The area is currently lacking in fire hydrants.He has not approached the Fire District board on this issue yet, but will once the board approves the RFP. Mr.Eck asked if the Water District is proposing to put a 12 -inch line to feed the area. Water Superintendent Jim Cowles responded yes, there will be a 12 -inch line running from Delaware all the way to Idaho and then they will tie into the existing tributaries off that 12 -inch to replace the existing 6 -inch. Mr.Eck asked if this goes off of Broadway and into Saguaro and Palo Verde. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 7 of 17 Water Superintendent Jim Cowles responded no.He said that they will just tie into tributaries as they go through.It will be replacing the existing waterline on Broadway prior to the widening of the road. Mr. Eck commented that the slow speed starters variable frequency drives are a very good idea. Water Superintendent Jim Cowles noted that it's an interesting program too because the Department of Commerce offers a reimbursement program on this.The devices are energy saving and if they are implemented into the system,we may be granted a reimbursement towards the installation of the devices. Mr. Eck asked if replacing the 6 and 8 inch main to 12 inch on Broadway would eliminate the shifting problem that is occurring there. Water Superintendent Jim Cowles answered as far as he could tell yes. Mr. Eck asked what kind of pipe is being installed. Water Superintendent Jim Cowles responded pipe with a concrete lining and a powder coating on the outside.It's an industry standard. Mr. Eck asked if there is something in the pipe to prevent scale buildup. Water Superintendent Jim Cowles responded that it is concrete lined and that's supposed to prevent scaling and materials from bonding to the inside of the pipe. Mr. Durbala asked if there is a warranty with this pipe. Water Superintendent Jim Cowles stated he believes there is a 1 -year warranty with all the pipe that we buy and it's also bonded through the construction company for a year. Mr. Dietz commented on the request for $4000 and how it was dropped to $500 under #18, "Telephone and Telegraph."He questioned whether it was tied in with the public works telephone system. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 8 of 17 District Manager Curtis Shook stated they do have a separate line.He asked Keith Lewis or John White to comment further on the issue. District Accountant John White commented that he was not sure what changes were made through the telephone system, but U.S. West doesn't send bills to the Water District under these accounts. We still do have the same level of phone service.The District Treasurer has instructed him to develop an overhead charge for the past fiscal year to include occupancy expenses such as rent, in addition to other charges incurred by the city employees who are not on the Water District payroll such as the district manager and public works director/operations director. Mr. Dietz asked if that was the purpose of dropping it from $4000 down to $500 because they are using public works phone lines and all the bills are going to public works. District Accountant John White answered yes. Mr.Dietz finds it odd that the water company uses the City's telephone system. District Clerk Kathy Connelly noted that 6 or 8 months ago the long distance usage was pooled, including the Water District, and the rates have dropped substantially.She added if people in all the departments use the phone system properly, a better rate is given. Mr.Dietz commented that he believes the Water Company should be separate. Water Superintendent Jim Cowles replied by saying that is the goal. Mr.Dietz asked District Finance Manager Keith Lewis about page 17, "Other Services", and why the budget request was for $10,500 and dropped to $2,000.He noted the description of other services is "bank service charges." District Accountant John White responded by saying that bank services is the only thing that has been incurred over the past couple years.Other services have historically been just a catch all for things that can't be classified.He stated that we are not incurring some of the costs that we did in the past such as start up costs. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 9 of 17 Mr.Dietz stated he was just curious because the budget seemed high. District Manager Curtis Shook commented that $10,500 essentially is like pin money.He stated we are only 2 years old now.He applauded Keith,John,Jim and Bill for putting the budget together because each year our expenditures are refined.He stated that the first year, two years we really had no clue. Vice Chairperson Surra commented that it seems appropriate that when you plan a budget you look at what you actually spent in the prior fiscal year and allow for any increases you expect.That appears to be what was done.She doesn't know why the budget request just mirrored what was requested the previous year.She thinks that is what is throwing everyone off.If the budget request column actually had mirrored instead, a portion based on actual expenses and 10% for whatever, it would have been easier for the board to look at.She said then the board could see that what you are actually receiving is not out of line with what you actually need.Putting down $10,500 eventhough you only used $1100 of it makes it look like you were cut way back on something.But, you really aren't being cut back because you didn't need it.She thinks it's just in the presentation of the requested amounts. Mr.Dietz noted on page 21, line item 27, "Electric" was bumped up $31,475 for the possibility of having Well #7 up and running at the end of fiscal, this whole year we're doing the budget for.The estimated cost to run Well #7 is $2,600 a month. District Manager Curtis Shook stated that figure is conservative.He said we are probably looking at $3,000 maybe $4,500 considering the magnitude of wells and the remote area it may be in.At the end of the year this year we've almost spent the entire $120,000 of existing Wells #5, #6 and booster station #11.He stated that the additional $20,000 that they're requesting may seem extreme to run it on 6 months out of the fiscal year but added we're looking at possible increases in rates on Wells #5, #6 and booster station to keep up with the maximum capacity that were pumping at this point.With the growth that we're experiencing we haven't been pumping out to capacity. District Accountant John. White stated for clarification that pump #5 is typically running about $4,000 or $4,500 a month.For the month of May it was over $5,000.Well #6 alone was over $6,000.The estimate for Well #5 of $5,000 and then what was just incurred off of Well #6, which was not paid as of May 31, brings us right up to 120.He estimates about $5,000 per well each month. Ms.Urich questioned item 25, "Training", on page 21.She stated that the explanation for item 24 and 25 is the same Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 10 of 17 over on the left but apparently we're not allowing any training. The request was for $500, and she wondered why that was cut to 0. Vice Chairperson Surra stated that only $2 was used this past year.She rephrased Ms. Urich question by asking where was training actually being costed out.She asked whether it's being paid under something else, getting free training or counting hours that go to "training" under this budget and calling them work hours instead.She questioned whether there is a discrepancy in the way the hours are tracked when people go for training. Water Superintendent Jim Cowles stated in the 3 months he's been here, all the training he's arranged for the Fire District has been free to the District. Vice Chairperson Surra stated then that it hasn't been costing the district for seminars or workshops at this point in time.She said perhaps we're not putting the payroll dollars under the training budget. District Treasurer Keith Lewis stated if the payroll dollars are put under the training budget then it fouls up the audit on his payroll. Vice Chairperson Surra stated that it would help in the explanation to let the board know that dollars being paid for people attending workshops are actually being paid out of payroll dollars.That would be helpful. for a worker to take a class. money should be put back in "Training". comfortable having something in there. Mr. Eck asked if there would be money District Manager Curtis Shook believes Ms.Urich stated she would feel more Vice Chairperson Surra noted if business conference and training are two separate things, maybe you have to cost out what is expected in conference money versus training with classrooms or seminars. She said business conferences tend to have other costs besides just the seminar. Mr.Eck stated that there are a lot of classes for water operators and utility workers.We should have something.There's a class coming up next month in backflow that costs $300.He asked if that class would fall under "Training". Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 11 of 17 District Accountant John White commented that they really didn't have much of a track record to go by; however, Mr. Cowles has taken initiative and signed up for a lot of things in terms of purchasing training materials, new memberships, etc.He believes we will be seeing more training. Mr. Dietz asked if the original $500 can be put back on. Vice Chairperson Surra wants to see it reflected in the recommended dollars for this coming fiscal year rather than see a deficit because the budget is for 0. District Accountant John White asked for a firm dollar amount. Vice Chairperson Surra responded the $500 that was originally thought of would be a good beginning.She noted then you could run at a deficit and get some baseline for what is needed next year. Mr. Eck asked if we have any money in the budget for emergency use.For instance, if one of our wells went down we might need money to purchase water. District Accountant John White responded that there is a line item for water.It is only $3,000.He added, the minimum charges to Arizona Water are $269 each month as Mr.Cowles mentioned earlier. Emergency use has not been budgeted for.He asked if the board's recommendation is to add money back in. Mr.Eck stated it's a possibility.He questioned whether or not Well #5 could go down at any time. responded that it there is that chance, yes. with the revenues. could probably borrow from the City. have monies available for an emergency. having a contingency fund rather than putting Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 12 of 17 Water Superintendent Jim Cowles Mr. Eck asked where we could come up Vice Chairperson Surra replied that you Mr. Eck feels it would be a good idea to Vice Chairperson Surra suggested it under line 28 for water.She added that then other emergencies could draw from it as well.She does not want to designate it only for water. Mr.Eck agreed.He asked were the money would come from if a well goes down and thousands of dollars are needed for repair.He asked if there is a contingency fund we draw from for something like that. District Accountant John White responded we could take it out of "Other Services."We could increase the amount in there.It wouldn't take long to go through $10,000 in water if one of the wells went down. Vice Chairperson Surra asked if its put into contingency then when you draw from that can't you debit against the actual line item where it is used rather than putting it in "Other Services."She would rather see you be able to draw from that fund but then debit the actual line item.She believes that would be a more clear audit trail for us. District Treasurer Keith Lewis asked if the board wants the department to come to them for authorization, like it does for the City.He stated that by law the Finance Department has to go to the City for authorization for expenditures from the city budget.That doesn't mean the board budget has to be the same. Vice Chairperson Surra stated that if it meant holding up serving the customer base it would be a problem.An emergency is an emergency. District Treasurer Keith Lewis stated they could go back to the board and tell them what was done. Vice Chairperson Surra commented if it's something planned, go through the board first.If it's an emergency, don't wait for the board. Ms.Urich questioned item 5 "Agricultural and Landscaping", on page 5 and why it was reduced in half. Water Superintendent Cowles stated if we were able to supply the actual herbicide, Parks and Recreation will apply it. Ms.Urich asked if the amount will be sufficient. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 13 of 17 Water Superintendent Jim Cowles answered that he believes so. It will be trial and error this year to see the overall cost of all the yards. Ms. Urich commented on how the city feels about weeds.She feels someone would complain. Mr. Eck asked if there is money in the budget to paint the wall. District Manager Curtis Shook replied that we did not budget for that this year but he believes under "Building Expenses" and "Facility Expenses" we could accommodate the money. Vice Chairperson Surra stated once the plan is to the board for a final budget adoption, a work session for part of it will be done in order to discuss how recommended additional funds will be allocated. Then, the board will convene into a regular session in order to do the adoption.It will be a duel meeting. Chairperson Coleman calls for a motion on item #5 on the tentative budget and setting the date for the final adoption. Vice Chairperson Surra MOVED THAT RESOLUTION 1999-002, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) PURSUANT TO A.R.S. §48-716 ADOPTING A PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,1999 AND ENDING ON JUNE 30, 2000 ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET AND DIRECTING DISTRICT STAFF TO SOLICIT COMMENTS FROM THE CITY OF APACHE JUNCTION ON THE PROPOSED ANNUAL BUDGET RATIFYING THE READOPTING OF ALL EXISTING RATES AND CHARGES FOR THE FISCAL YEAR DESCRIBED HEREIN WITH THE ADDITION OF $60,000 TO BE ADDED INTO THE BUDGET ALLOCATED FOR TRAINING, CONTINGENCY AND WITH AN ADDITIONAL $34,000 UNDER VEHICLES BE APPROVED AND DESIGNATING THAT THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON THE 17TH OF AUGUST, 1999 AT 6:00 P.M. IN THE COUNCIL CHAMBERS. VOTE: UNANIMOUS The motion carried. CONSIDERATION OF AWARD OF BID FOR DESIGN, DRILLING, TESTING AND Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 14 of 17 Mr. Dietz SECONDED THE MOTION. )) ABANDONMENT OF EXPLORATORY ) BOREHOLE ) )Water Superintendent Jim Cowles asked the award go to Kleinfelder, Inc. in the amount of $61,500.The cost covers the design and drilling of the exploratory borehole for Well #7 to give data to the District as far as zonal sampling and water quality. District Manager Curtis Shook pointed out that this is just authorization for the District Chairman and District Manager to sign but we would not be asking either to sign that document if the State intends to charge us the $75 per acre fees.He stated the bottom line is that no money will be expended unless we know the well is worth drilling and that we can deliver water at a reasonable price. Mr. Eck asked how long it will take to get an answer back on the negotiations of the $75 rate. Water Superintendent Jim Cowles replied that the next scheduled hearing is August 10.He said that is not confirmed. District Manager Curtis Shook said once there is a hearing it takes about a week to get an answer. Ms. Urich MOVED THAT THE AWARD OF BID FOR DESIGN,DRILLING,TESTING AND ABANDONMENT OF EXPLORATORY BOREHOLE BE AWARDED TO KLEINFELDER, INC. IN THE BASE TOTAL AMOUNT NOT TO EXCEED $61,500.00 VV1TH AN ADDITIONAL 10% TO BE USED ONLY IN THE EVENT OF UNFORESEEN CONDITIONS RESULTING IN THE NEED FOR A CHANGE ORDER NOT TO EXCEED $6,150 AND THAT AUTHORIZATION BE GIVEN TO THE DISTRICT CHAIRPERSON AND MANAGER TO SIGN THE NECESSARY AGREEMENTS TO BE APPROVED. Mr. Dietz SECONDED THE MOTION. VOTE: Unanimous The motion carried. RESOLUTION NO. 1999-001, LAND ) PURCHASE ) ) District Manager Curtis Shook stated that this is the culmination of about a year and a half's worth of work and a lot of patience with the Bureau of Reclamation.He said a year and a half ago we went after this piece of land as a site to build a future water treatment plant and we finally have a purchase agreement with the Bureau of Reclamation and Federal Government for this Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 15 of 17 6.4 acres.It's a good piece of land right on the canal and would serve well for building a water treatment plant in the future. Mr. Dietz MOVED THAT RESOLUTION 1999-001,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA)TO PURCHASE LAND AS DESCRIBED IN EXHIBIT A,FROM THE UNITED STATES DEPARTMENT OF INTERIOR, BUREAU OF RECLAMATION BE APPROVED, AND THAT AUTHORIZATION BE GIVEN TO THE DISTRICT MANAGER TO SIGN THE NECESSARY AGREEMENT. Ms. Urich SECONDED THE MOTION. VOTE: Unanimous The motion carried. DISTRICT MANAGER REPORT District Manager Curtis Shook stated we have had significant use of water for construction and the District Superintendent has written that over the last two months we've had almost $70,000 in sales just off of construction usage.This will help the District budget quite a lot. DISTRICT SUPERINTENDENT REPORT Mr. Cowles stated he received a call from the State Land Registrar regarding the right of way to the proposed well site.He noted initially the district tried to purchase the right of way.The price was $450,000.The district resubmitted the request for the utility corridor easement.The estimates came in and the State Land department quoted a price of $14,100.This will allow us to run a transmission line from the proposed well site up into the district. DISTRICT TREASURER REPORT None DISTRICT COUNSEL REPORT Absent ADJOURNMENT meeting at 7:02 p.m. Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 16 of 17 )Chairperson Coleman adjourned the ACCEPTED THIS 17TH DAY OF AUGUST ,1999, 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 17TH DAY OF AUGUST ,1999. 1! DouglasDouglas dernan Chairperson ATTEST: 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 ofApache Junction, Arizona,held on the 6th day of July, 1999.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of August, 1999. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of July 6, 1999 Page 17 of 17