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HomeMy WebLinkAbout1999-08-17 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING AUGUST 17,1999 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 August 17,1999,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 Anne Surra Mr.Joe Durbala Mr.R.E.Eck Ms.Carol Urich Mr.John Insalaco Mr.Rick Dietz Staff Present:Curtis Shook,District Manager Keith Lewis,District Finance Manager Kathleen Connelly,District Clerk Doug Dobson,District Operations Manager John White,District Accountant Jim Cowles,Water Superintendent Others Present:George Hoffman,Assistant City Manager APPROVAL OF MINUTES OF JULY 6.1999 ) )Mr.Eck MOVED THAT THE MINUTES OF JULY 6,1999,BE APPROVED AS PRESENTED. Mr.Dietz SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 1 of 10 VOTE:6-0-1 (Mr.Insalaco abstained due to his absence at that meeting.) The motion carried. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 1999- 2000;RESOLUTION NO.1999-003/ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 1999-2000; RESOLUTION NO.1999-004/ADOPTING A RATE SCHEDULE,SERVICE LINE AND METER INSTALLATION CHARGES, TO ALSO INCLUDE RECONNECTION FEES,METER DEPOSITS,SERVICE REESTABLISHMENT,RETURNED CHECK,METER REREADS AND CUT LOCK FEES ) District Manager Curtis Shook briefed the board on the item.A public hearing was advertised with the intention of final passage of the budget.District Counsel William Farrell has asked for a continuance of this item to September.He is researching the advertising needed if there is no rate increase. Vice Chairperson Surra asked if the public hearing is being continued also. District Manager Curtis Shook stated he is asking that the public hearing be continued and that the board not vote on the budget this evening. District Clerk Kathleen Connelly stated the previous item cannot be denied;the public hearing must be held.The question is whether they still have to adopt the rates if they are not being changed. Chairperson Coleman commented he did not think they would have to unless there is an expiration on the rates. District Clerk Kathleen Connelly commented she did not see any harm in re -adopting them. Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and called for a motion. Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 2 of 10 .Vice Chairperson Surra MOVED FOR RESOLUTION NO.1999-003,THAT WE CONTINUE THAT TO OUR SEPTEMBER MEETING AND ASK THAT WE CONTINUE THE PUBLIC HEARING TO THAT SEPTEMBER MEETING, ALSO, ON SEPTEMBER 20 AT 6 P.M. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. District Clerk Kathleen Connelly stated there is a second part to these items,which is an executive session for counsel to give the board legal advice. Vice Chairperson Surra commented she only addressed one resolution in her motion.Another motion must be made for Resolution No.1999-004.She made that separate for adoption. Mr.Dietz asked if they were adopting the rate schedule this evening. District Clerk Kathleen Connelly stated they were not,as that is what is still in question for adoption. Mr.Durbala MOVED THAT WE PUT ON HOLD THE RATE SCHEDULE UNTIL THE NEXT MEETING OF SEPTEMBER 20,1999,AT 6 P.M. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CONSIDERATION OF CONTINUATION OF PUBLIC HEARING AND ADOPTION OF FISCAL YEAR 1999- 2000 BUDGET AND RATE SCHEDULE;EXECUTIVE SESSION IN CONJUNCTION WITH ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 1999-2000 ) )Chairperson Coleman called for a motion. Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 3 of 10 Vice Chairperson Surra MOVED THAT WE MOVE INTO EXECUTIVE SESSION IN ORDER TO SEEK LEGAL ADVICE REGARDING THE RATE SCHEDULE FOR THE BUDGET. District Clerk Kathleen Connelly stated this needs to be scheduled for September 20. Vice Chairperson Surra asked why they could not have the executive session now. District Clerk Kathleen Connelly stated legal counsel is not here this evening. Vice Chairperson Surra withdrew her original motion and MOVED THAT WE HAVE AN EXECUTIVE SESSION PRECEDING THE MEETING ON SEPTEMBER 20 AND SET THE EXECUTIVE SESSION FOR 5:30 P.M. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARD OF BID:DESIGN,CONSTRUCTION BID DOCUMENTS AND INSPECTION FOR UPGRADE OF EXISTING WATER LINE ON BROADWAY FROM DELAWARE STREET TO IDAHO ROAD ) )Water Superintendent Jim Cowles briefed the board on the item.This is to upgrade an existing 6"to 8" water line along Broadway Road, to be done in conjunction with the widening of Broadway Road.The water line should be upgraded prior to that construction to ensure that the construction will not be interrupted by breaks in the existing line, which is very old,of varying sizes and is buried under the right-of-way.Kent Norcross of Sunrise Engineering was present representing the firm the district is preparing to award the bid to. Mr.Eck asked when the project would be started. Water Superintendent Jim Cowles stated they would be starting as soon as possible after the winter visitor season. Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 4 of 10 Mr.Durbala asked if i t would definitely be done before the road is widened. Water Superintendent Jim Cowles stated it would.They are also requesting 16 additional fire hydrants along Broadway. He would like to be able to split the cost with the fire district. recommending Sunrise Engineering. he was. process. Chairperson Coleman asked if he was Water Superintendent Jim Cowles stated Chairperson Coleman asked about the Water Superintendent Jim Cowles stated they set up a panel of three to review the bids;based upon the criteria that had been set,including cost,experience and the ability to complete the job in the estimated time frame,Sunrise was deemed to be the best.They come highly recommended by other engineers throughout the industry. Assistant City Manager George Hoffman asked why David Evans had not been selected. Water Superintendent Jim Cowles stated David Evans did not supply a time schedule as requested. Mr. Eck asked if American had done the same thing;he was under the assumption they always had to use the low bid. Water Superintendent Jim Cowles stated they did not believe American Engineering had the experience necessary to do the job based on the panel criteria. Chairperson Coleman closed the discussion and called for a motion. Mr.Dietz MOVED THAT AWARD OF BID FOR THE DESIGN CONSTRUCTION BID DOCUMENTS AND INSPECTION FOR UPGRADE OF EXISTING WATER LINE ON BROADWAY ROAD FROM DELAWARE STREET TO IDAHO ROAD BE AWARDED TO Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 5 of 10 SUNRISE ENGINEERING INC.IN A BASE TOTAL AMOUNT NOT TO EXCEED $30,990.00 WITH AN ADDITIONAL 10% TO BE USED ONLY IN THE EVENT OF UNFORESEEN CONDITIONS RESULTING IN THE NEED OF A CHANGE ORDER NOT TO EXCEED $3,099.00,BE APPROVED. Vice Chairperson Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT WATER SUPERINTENDENT REPORT: Water Superintendent Jim Cowles commented they are tentatively set to start the borehole around September 1,based upon Beeman's Drilling being able to come down from Flagstaff.They are on a major drill and hope to be back down here the first week of September.Those results will determine whether the board wishes to drill a well in that area.The cost of the right-of-way to the land around the well was reduced to between $13,700 to $13,800 from $450,000.The district is not purchasing the land,just the right-of-way to get the utility easement. When future development occurs,the district can sell off portions to other utilities and get a refund on some of that money.New software was installed in July for billing that is Y2K compliant.It is presently being worked with regarding inputting the data and the provision of training.He showed the board the water line equipment that had been installed in the Royal Palm area ten to fifteen years ago,and then he showed them the current equipment being installed today.The leaks are being caused because the system is coming of age;they have had five leaks on Estevan in approximately forty-five days.Another problem is the black poly pipe, which when introduced in the late '70's was supposed to be a 100 year pipe.The district is not even getting 20 years out of it; when there is a bow in the pipe it creates a problem.The district is working diligently to keep up with the leaks:there are twelve right now,and they average one to two called in daily. Mr.Durbala asked if that is why the water pressure has been getting low over the last few days in that area. District Clerk Kathleen Connelly stated that was caused by a power outage. Water Superintendent Jim Cowles stated they did have a power outage on Saturday. The district and Arizona Water were both out of water.They had water at the Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 6 of 10 south end by Baseline,but they did not have enough power to push it up to the Royal Palm area. Mr.Eck asked if they were supposed to get back up generators for power outages. Water Superintendent Jim Cowles stated he has been working on the bid specifications for that now.They are looking at a permanent installation at the Buena Vista/16th Avenue yard.They would also like to purchase a portable generator to use as needed.If Well #7 is built,he would like to put in a generator there due to its being so remote.They are trying to purchase the slow starters prior to purchasing the generators as that will save the district some cost on them.They will not have to go with as large a generator to produce the power they need now. Vice Chairperson Surra commented she heard he gets down in the trenches himself when there is a leak.She wondered if the district has enough staff. Water Superintendent Jim Cowles stated he requested two new positions and he received one.He will be requesting additional staff in the future.He will be using a preventive officer to work on the compliance issues. Vice Chairperson Surra commented she is concerned with the cost effectiveness of putting a supervisor in the trenches who might be better able to do other things. Water Superintendent Jim Cowles stated the district does not have the manpower at this time. Vice Chairperson Surra suggested rethinking the staffing if that is the case. Water Superintendent Jim Cowles stated his biggest problem is losing two staff members each month for 6 days to read meters.Once the new handheld meter reading system is implemented,it will take it down to one person,though the read days will have to be extended to 6 or 7 days.There will be a full crew out in the field to do repairs,installation and services.At this time he only goes out in the field when his people are reading meters. Mr.Insalaco asked what the average time was to repair a leak. Water Superintendent Jim Cowles stated a 20'leak could be dug the entire way in one -and -a -half to two hours.In Royal Palm,the longer leaks crossing the roads, take up to four to six hours.They use a cable pull system there,but many of Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 7 of 10 them have steel repair clamps on them and they cannot be pulled through.The steel repair clamps were put on when the sewer district cut the lines.Staff has put together a package to apply for some low interest financing through WICFA funds to revamp the entire Royal Palm and Davis district. Vice Chairperson Surra commented it is a shame that the people with the bad piping have probably paid twice to have the appropriate piping in their neighborhoods prior to the city taking over the water district.It shows why the city really needed to have the water district. Mr.Eck asked if he was still looking at the site on the state trust land. Water Superintendent Jim Cowles stated he was. Mr.Eck asked if they are still negotiating the amount. Water Superintendent Jim Cowles stated they were trying to negotiate the cost for the water.State land was trying to charge the district $75/acre foot for the water.Our consultants have stated the state will not move on that price.The district was originally asking for 1200 acre feet per year at a cost of about $90,000.The district will not pump that much,so they have reduced the amount to 300 acre feet per year at a cost of $25,500 a year at $85/acre foot. Chairperson Coleman asked if the district would lose part of its allotment if it does that. Water Superintendent Jim Cowles stated the district is still purchasing long term storage credits.The district has not even started using those at this point. Once they start mandating the withdrawal of ground water with all the surcharges, then the district will start using those credits. Mr.Durbala asked if the district will be going after the sewer district due to the problems that have developed with the pipes. Water Superintendent Jim Cowles commented he could not prove it. Mr.Durbala asked if the pipe manufacturer would be liable for anything. Water Superintendent Jim Cowles stated there was a class action suit about ten years ago.Arizona Water applied for some money and they were denied.The class action suit was for people who had actually had their houses plumbed with the Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 8 of 10 pipe.Distributers and water companies were exempt from the suit.To his knowledge there has been no other class action suit and the company has gone out of business. Mr. Durbala asked if there was any kind of liability insurance. Water Superintendent Jim Cowles commented he did not know. Mr.Durbala asked if the district would be able to recoup some of the money. Water Superintendent Jim Cowles stated he would look into that so far as replacement through insurance claims. Mr.Durbala suggested the district attorney look into that. Mr. Eck asked if he had discussions with Mesa about the possibility of purchasing water. Water Superintendent Jim Cowles stated they have approached Mesa about the purchase of some of their treated water.They seem accommodating as our peak season is their low season,so they would be able to supply the district with water.I t will take a letter from the manager to the city manager of Mesa requesting that negotiation begin.There are some engineering problems as the pressure would be lower;the water would have to be taken directly into storage. There is also the cost of a 16.5"line for two miles at $35-$40/foot in order to access the Mesa water.I t is an option the district has,along with buying into one of their treatment plants at Elliot and Mountain Road.The district was offered an option to buy in,but no cost had been mentioned. District Manager Curtis Shook noted the district is looking into all of the different options;whether to build our own plant,combine with Mesa,or the chances of further ground water supplies.Staff is working on a recommendation. Mr.Dietz commented it would be good to have a cost comparison. District Manager Curtis Shook stated they are also looking into time frames.The least costly in the short term may be the most costly in the long term. DISTRICT MANAGER REPORT: None. Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 9 of 10 DISTRICT TREASURER REPORT: None. DISTRICT COUNSEL REPORT: None. ADJOURNMENT meeting at 6:30 p.m. )Chairperson Coleman adjourned the ACCEPTED THIS 20TH DAY OF SEPTEMBER ,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 20TH ATTEST: Kat hleen Connelly District Clerk DAY OF croTrmaro ,1999. 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 meeting of the Water Utilities Community Facilities District of the City of Apache Junction, Arizona,held on the 17th day of August, 1999.I further certify that the meeting was duly called and held and that a quorum was present. Date0 this 26th day_of August,1999. ZaZteee Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 17,1999 Page 10 of 10