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HomeMy WebLinkAbout1999-09-20 WUCFD MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING SEPTEMBER 20,1999 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 September 20,1999,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:Bill Farrell,District Counsel Keith Lewis,District Finance Manager Kathleen Connelly,District Clerk Doug Dobson,District Operations Manager John White,District Accountant Jim Cowles,Water Superintendent Bill Allen,Water Operator Others Present:George Hoffman,Assistant City Manager APPROVAL OF MINUTES OF AUGUST 17.1999 ) )Ms.Urich MOVED THAT THE MINUTES OF AUGUST 17,1999 BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 1 of 11 Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 1999- 2000 ) Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and moved on to the next item. RESOLUTION NO.1999-003:ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 1999-2000 )Chairperson Coleman called for a motion. Mr.Durbala MOVED THAT RESOLUTION NO. 1999-003, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)FULLY ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA)FOR FISCAL YEAR BEGINNING JULY 1,1999, AND ENDING JUNE 30,2000; DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA)FOR FISCAL YEAR 1999-2000;BE APPROVED. Ms.Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. 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 )Chairperson Coleman called for a motion. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 2 of 11 Water Superintendent Jim Cowles asked that the resolution be amended by deleting five items from the front page of the rate schedule.The following should be removed:"2"Meter (Customer to install meter and line)...NC"; "3"Meter (Customer to install meter and line)...NC":"4" Meter (Customer to install meter and line)...NC";"6" Meter (Customer to install meter and line)...NC"; and "8"Meter (Customer to install meter and line)...NC. eliminated. that was correct. Mr.Dietz asked if he wanted those Water Superintendent Jim Cowles stated Mr.Eck commented they would then be able to use their own discretion at that time. Water Superintendent Jim Cowles commented there is no charge,and the district does not do that type of installation.There is an establishment charge and they are being questioned by customers as to why they are charged that. District Operating Manager Doug Dobson stated last year they looked at it as the district not putting those meters in, so there would be no charge for that installation.The developer would be putting in those meters.The misunderstanding occurred when they would put in the meter and they thought they would not be charged an establishment fee.With those "no charge" installations removed,there should be no confusion with the establishment fee. Vice Chairperson Surra asked if the fee they were paying is for the establishment of the water usage line. District Operating Manager Doug Dobson stated that was correct. Mr.Dietz asked what the fees are for those customers installing their own lines and those customers having the district install their lines,both residential and commercial. District Operating Manager Doug Dobson stated a residential hook-up is $3,041 with the developer buying and installing Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 3 of 11 the meter and extension.For commercial or industrial,the charge is $4,878. Mr.Dietz asked if that is the charge for the district installing them. District Operating Manager Doug Dobson stated that is for the district not installing them: the developer/owner installs them.The reason for the difference in price is that residential uses a small amount of water compared to commercial or industrial.The fee is based on the proposed use. Vice Chairperson Surra commented the fee is based on the developer being responsible for installing those items. District Operating Manager Doug Dobson stated that is correct. Vice Chairperson Surra commented there are technically no "no charge"items,so it is causing confusion to leave these other items on the schedule. District Operating Manager Doug Dobson stated that is correct.They just had another customer two weeks ago who insisted there was no charge according to the schedule. Vice Chairperson Surra commented she would probably argue the fact based on what this looks like.She recommended removing the items. Mr. Eck asked if they get the meter the district requires when they purchase one. District Operating Manager Doug Dobson stated they inspect the meter and everything installed.The district tells them the kind of meter they can use. Mr.Eck commented they cannot use an ADWR approved meter just because i t is cheaper. District Operating Manager Doug Dobson stated that is correct. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 4 of 11 Mr.Eck commented he had asked for a limited amount of rereads to be given to customers at no charge annually to be added to the rate schedule.He does not like the customer being charged $15 for each reread.He suggested giving them one or two rereads per year for free. Water Superintendent Jim Cowles stated they only charge them the $15 if they reread the meter and the original reading was correct.This covers the district's costs. Mr. Eck commented he is concerned about the new customer,coming from a lower rate water company,asking for a reread because the water bill is so high out here.He would like to see them get at least one reread at no charge.He could see the district charging them the $15 fee if there is a continuous problem. Vice Chairperson Surra asked if it would be a record keeping issue to keep track of those people who had called in for rereads,and the amount of times they had called in. it would be a bookkeeping issue. files. they do have individual files. to the file. Water Superintendent Jim Cowles stated Mr. Eck asked if there were individual Water Superintendent Jim Cowles stated Mr.Eck asked if she would have to go Water Superintendent Jim Cowles stated she would have to go the file or the computer,but the current data base does not allow for rereads.The new data base probably will. Vice Chairperson Surra asked if this could be in a policy section rather than the rate section.The fee could be waived at the discretion of the administrator. Mr.Eck stated that had been his intention. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 5 of 11 Water Superintendent Jim Cowles stated they do waive the fees the majority of the time. billing anyone for a reread. they bill when it is appropriate. Mr.Eck asked if he ever recalled Water Superintendent Jim Cowles stated Vice Chairperson Surra asked i f it needed to be on the rate chart,as it could be a customer service issue. Water Superintendent Jim Cowles stated he believed it could be a field decision and not have to be on the rate schedule. District Counsel Bill Farrell suggested it could be treated the same as the no charge removals.The meter reread could be taken off the back of Schedule A and the district manager could be instructed to prepare and present an administrative policy at a future meeting. Vice Chairperson Surra commented if they do not list a charge,then i t cannot be charged when a charge should be billed. Mr.Eck stated he would be satisfied to just leave it on and give the water superintendent discretion on whether to charge or not.He cannot recall it ever being charged. Water Superintendent Jim Cowles was unsure if i t had ever been charged,but they do have repeat offenders. Ms. Urich commented the district would want the option there. District Counsel Bill Farrell suggested they take the incorrect information out. Vice Chairperson Surra commented it could then be discretionary on what the water superintendent would think.A repeat offender or abuser could legally be charged. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 6 of 11 Mr.Eck commented it sounded good to him. District Counsel Bill Farrell stated the motion would be to remove the five items on the front and correct the language on the rereads. District Operating Manager Doug Dobson stated they could come back with a policy that says they get three free rereads per year or have it be at the discretion of the water superintendent. The consensus of the board was for it to be at the discretion of the water superintendent. Mr.Dietz commented this would allow them to see who is abusing it. Mr.Eck commented he did not want them to have to create a policy just because of his request for one-time rereads.If a customer continually calls for rereads,they should be charged. District Clerk Kathleen Connelly asked i f the note should remain at the bottom of the page;it appeared to be an editorial comment. Vice Chairperson Surra believed it was a comment to the water board and it should be taken off the rate schedule. Chairperson Coleman called for a motion. Mr.Durbala MOVED THAT RESOLUTION NO. 1999-004, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA) ADOPTING AN AMENDED RATE SCHEDULE FOR MONTHLY MINIMUM CHARGES AND SERVICE LINE AND METER INSTALLATION CHARGES AND ESTABLISHING AN EFFECTIVE DATE,BE APPROVED WITH THE FOLLOWING AMENDMENTS: TO DROP ON EXHIBIT "A",UNDER THE SERVICE LINE AND METER INSTALLATION CHARGES DROPPED,2"METER STATING CUSTOMER TO INSTALL METER AND LINE AT NO CHARGE,3"METER STATING CUSTOMER TO INSTALL METER AND LINE AT NO CHARGE,4" METER STATING CUSTOMER TO INSTALL METER AND LINE AT NO CHARGE,6" METER STATING CUSTOMER TO INSTALL METER AND LINE AT NO CHARGE,8"METER STATING CUSTOMER TO Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 7 of 11 INSTALL METER AND LINE AT NO CHARGE;AND ON EXHIBIT "A",ON PAGE TWO,TO DELETE THE LINE "METER REREAD (IF CORRECT)";AND DELETE THE NOTE. There was general discussion as to whether "if correct" would be deleted or left in.Mr.Durbala left the deletion in his motion. Mr.Durbala continued his motion with AND DELETE THE NOTE "TIE FARES ABOVE EXCEPT FOR THE BOLD ITEMS BECAME EFFECTIVE APRIL 10.1993.WE HAVE THE SAME RATES AND MOST SERVICE CHARGES THAT WE HAVE HAD FOR THE PAST 5 YEARS AND 5 MONTHS",DELETE THAT STATEMENT. Mr.Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT WATER SUPERINTENDENT REPORT: Water Superintendent Jim Cowles commented on the handout he had given the board. In addition,he gave them a copy of the actual report that the consumers would receive.He commented he would be happy to add anything at their discretion. This will be the final report for this year as the deadline is approaching.He will be picking them up from the printer this week along with about 2,800 mailing labels.They will be taken to the post office and mailed out.He does not have any time to change anything on this one,but he was soliciting comments for next year's report.He reported the district has not received the permit for Well #7 at this time.It is reportedly being walked through and the district was supposed to have it for this evening.Drilling is tentatively scheduled for the second week in October.The groundwater purchased from State Land has been appealed,but based upon what they have heard,there is not much chance in lowering the fee.Therefore,they reduced the 1,200 acre ft./year to 300 acre ft./year.This increased the fee from $75/acre ft. to $85/acre ft.,and they are allowed to draw above the 300 acre ft.,but they would only have to pay the 300 acre ft.for the year if they do not draw above that.Currently the district is drawing 500 acre ft. per year out of Wells #5 and #6 each.Each acre foot above the $25,500 will be $5/acre foot.This will not go into effect unless they have a good well at Well #7.The district will now be able to use the recharge credits that they currently have,which is 4,830 recharge credits,and each credit equals one acre foot of water.This equals about 2% years of water that Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 8 of 11 the district will not be charged for.The district will need to start drawing on that water by January 5,2000,and there should be approximately 3 years of storage in the ground before the district will have to start paying for water. Mr.Eck commented that was just taking the CAP water to Roosevelt and down. Water Superintendent Jim Cowles stated they will be recharging about 2,889 per year.Two employees,Howard McDonald and Kevin Swain were sent to a 48 hour Backflow Testing Certification Course;both passed and are now certified specialists that can test backflows around the city.He has worked out an IGA with the Parks & Recreation Department wherein they will spray the sites for weed control and the district will test the city sites.This will save approximately $500 per year in weed control.The Ironwood land purchase has been completed with the final payment being sent off on August 25.The title is to be received in 45 days. Mr.Eck asked the status on the back up generator. Water Superintendent Jim Cowles stated Well #5 needs to be rebuilt before they purchase the smaller generator.As the budget was not approved in July,he could not put that out to bid.Due to the bidding process,the equipment could not be rebuilt before the end of the year.Three consultants are now discussing the rebuilding of the well; once this is completed they will be able to buy a smaller mobile generator for about $20,000. Mr.Eck asked if that would be for the tank site. Water Superintendent Jim Cowles stated it would be for Well #5,but the generator will be able to run the tanks. Mr.Eck asked if there would be a generator hooked up on site when the city has a power outage. Water Superintendent Jim Cowles stated they would have one.He added if and when Well #7 goes in,it will have a permanent installation. Mr.Eck commented they had received a notice that the arsenic levels and others had changed.It will be very important to get additional water. District Operating Manager Doug Dobson asked what the levels were. Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 9 of 11 Mr.Eck commented he did not get the figures,but he heard it was high as of Friday last week.He remembers discussing it at that time and that the results were very scary. Water Superintendent Jim Cowles reported that the district had dropped the run time on Well #6 down to 19 hours per day instead of 23 hours and the arsenic level had dropped to .010:previous to this it was running between .027 to .035. Assistant City Manager George Hoffman asked if the generator would be on board prior to year end. Water Superintendent Jim Cowles stated it would be. DISTRICT MANAGER REPORT: None. DISTRICT TREASURER REPORT: District Treasurer Keith Lewis stated they are going through the audit at this time. DISTRICT COUNSEL REPORT: District Counsel Bill Farrell stated that in connection with the audit,he had to report that there are no litigations. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:26 p.m. ACCEPTED THIS 6TH DAY OF DECEMBER ,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 6TH DAY OF DECEMBER ,1999. Douglas Corleman Chairperson Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 10 of 11 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 of Apache Junction,Arizona,held on the 20th day of September,1999.I further certify that the meeting was duly called and held and that a quorum was present. Date. this 4th day of October,1999. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 20,1999 Page 11 of 11