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HomeMy WebLinkAbout2000-05-15 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING MAY 15,2000 The special meeting of the District Board of the Water Utilities Community Facilities District (Apache Junction Water Company),City of Apache Junction,Arizona,was held on May 15,2000.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 6:04 p.m. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson Anne Surra Mr.Rick Dietz Mr.Joe Durbala Mr.R.E.Eck Mr.John Insalaco Ms.Carol Urich Staff Present:Curtis Shook,District Manager Kathleen Connelly.District Clerk George Hoffman,Assistant City Manager Keith Lewis,District Finance Manager John White,District Accountant Doug Dobson,District Operations Manager Others Present:None. APPROVAL OF MINUTES OF FEBRUARY 14,2000:MARCH 7,2000;APRIL 11,2000 AND APRIL 25,2000 )Vice Chairperson Surra MOVED THAT THE MINUTES OF FEBRUARY 14,MARCH 7,APRIL 11 AND APRIL 25,2000 AS PRESENTED IN OUR PACKETS WITH CORRECTIONS MADE BY THE VARIOUS MEMBERS OF THIS BOARD BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 1 of 11 Ms.Urich SECONDED THE MOTION. VOTE:Unanimous. The motion carried. OPERATIONS MANAGER REPORT TO INCLUDE DISCUSSION ON DISTRICT'S CAPITAL NEEDS AND BUDGET FOR 2000-01 )District Operations Manager Doug Dobson briefed the board on this item.The well spacing analysis has been completed and sent to Arizona Water and the Department of Water Resources.If approved,a renaming of Well #5 as a recovery well will be the next step.The district's program has been accepted by the Arizona Department of Environmental Quality should the district need Arizona Water and Well #5 in the future.He is still waiting for the written response on the opinion of the test drilling.There are several projects that must be completed in the next year or shortly thereafter,and they all need to be budgeted.The Mesa connection is based on $40 per foot and is estimated at $633,600.This water supply will be necessary to insure adequate water supply in the near future. The Broadway upgrade,based on the engineer's estimate of $42.92 per foot, will be $340,000.It must be completed before the construction of Broadway between Delaware and Idaho can begin.The district has received the draft design for the interconnection between Arizona Water and the district for an emergency tie-in at San Marcos.The final draft design should be coming back, and the final cost is estimated at $60,000.The Master Plan Study is ready to be advertised.Well #6 rehabilitation will cost $210,000;this will clean up the arsenic problem in the well.He is looking at low interest bonds to finance this.Pipe replacement in the Royal Palm area needs to be completed before affected streets can be paved.Approximately 70% of the pipe needs to be replaced at a cost of $75,000.The pipe that needs to be replaced that is in the dirt will cost an additional $50,000.The pipe in the dirt can wait for two years or so or the district can do them as they break.He will begin looking at the cost of a water treatment plant in the next year or so.He estimates the total cost of the projects will be $1.2 million. Vice Chairperson Surra commented she has been getting complaints from residents of the Royal Palm area.The area looks bad because the district has only been repairing things as they are Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 2 of 11 breaking.The district's credibility suffers.She would rather see this defined as a project and get i t done.She is aware they are failing daily. District Operations Manager Doug Dobson agreed that they are failing everyday. Vice Chairperson Surra stated there are one or two residences failing everyday,and there is water being wasted before someone knows about it.She urged that this become a project that is done all at once.It is one of the oldest subdivisions and it is really looking shoddy because of the way the streets are and the constant barricades. Mr.Eck asked if the $75,000 was just for the replacement of pipes in Royal Palm. District Operations Manager Doug Dobson stated that would be for the pipes in the pavement. Mr.Eck asked if that is the cost if the district's crews do the work themselves.He thought it might be better to bid this out for another company to do. District Operations Manager Doug Dobson stated he had considered bidding this out. Mr.Eck was not sure the district has the man hours to do this. District Operations Manager Doug Dobson stated they are fixing leaks everywhere.He needs someone to be able to come in and fix the first 3 or 4 streets in Royal Palm.After those are done,he can then start paving them.It took them a month to get three services going on 26th Avenue because of all the other jobs. Mr.Eck asked if he could come back to them with an approximate figure on putting that out to bid. District Operations Manager Doug Dobson stated the $75,000 is the bid price.The additional $50,000 for the pipes in the dirt would get the job done. Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 3 of 11 Mr.Eck asked if the $125,000 would be for the east side of Royal Palm. District Operations Manager Doug Dobson stated it would be everything on the east side of Royal Palm.That includes the building,the overlaying,and getting it straightened out.He commented the bidding has changed in the last few years.The concrete bids are extremely high.The same thing is happening with the installation of the sewer and water mains. Mr.. Eck commented that was his concern.If they need to put more money aside to make sure it is completed, they should do so. District Operations Manager Doug Dobson commented they also lose a lot of water before it comes to the top of the ground. Ms.Urich commented she has also heard concerns from those residents.She does not want to use the band -aid approach.She asked if that is the only problem they are having along the east side of Royal Palm. District Manager Doug Dobson stated this is what he has to have done.He cannot afford to go 40'on each side for every main break:it would break Public Works.They are doing additional things to help out,such as a loop that should give additional pressure in the Royal Palm area.It will not solve the problem,but they will not have a leaking 3" main. Mr.Durbala commented on a neighbor who had a leak. District Manager Doug Dobson stated they have new leaks everyday. Mr.Durbala stated it needs to all be done right now so that when i t is paved they do not have to cut into it all the time. Water Utilities Community Facilities District Meeting Minutes of May 15.2000 Page 4 of 11 Mr.Dietz agreed. Mr.Eck commented it was too bad this could not have been prior to the sewer going in.The trenches caused too much pressure on the old pipe. District Operations Manager Doug Dobson described a water leak they had on Warner. Mr.Durbala asked how soon he would have the bids back. District Operations Manager Doug Dobson stated he would have to put together a bid package.He estimated it would be after the first of the fiscal year before the work could begin. Mr.Eck asked if they were definitely considering a Mesa tie-in,and if there was a price on the water yet. District Operations Manager Doug Dobson stated they have an agreement that they sent to Bill Farrell for him to look at.There are two locations where they could possibly tie in.He does not have a definite water price yet. Mr.Eck asked what needs to be done to Well #6. District Operations Manager Doug Dobson stated they have to pull the well,spin test it,determine where the water levels are coming from,and find out where the arsenic level is.If the arsenic is on the bottom,the cost will not be a lot.You can close off whatever is needed on the bottom,and it may only cost $50,000.If it is in the middle,more repairs are necessary. Mr.Eck asked if they are concentrating on the Mesa tie-in rather than another well. District Operations Manager Doug Dobson stated that is correct. Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 5 of 11 Mr.Dietz asked if the $210,000 for the rehabilitation of Well #6 is a worst case scenario. District Operations Manager Doug Dobson stated i t is.You have to pull everything, out.lay it on the ground, do the testing,and buy water for a week while the well is down.It could be done in four days,but he has never seen it take only four days. Mr.Dietz asked if they were going any further with Well #7. District Operations Manager Doug Dobson stated a specialist has estimated it could bring 200 gallons per minute and possibly 400 gallons per minute.He wOuld not put it in writing that the well would bring in 550 to 600 gallons per minute.He does not believe it will. Mr.Dietz asked if this was the second opinion on it. District Operations Manager Doug Dobson stated i t is the third opinion.This is not in writing yet.only verbal. cost the district. estimated it to be approximately $70,000. Mr.Eck asked how much Well #7 has District Manager Curtis Shook District Accountant John White stated it was about $60,000:for engineering alone it was about $51,000. Mr.Eck commented he was curious about whether they should go that route instead of spending money on Well #6. District Operations Manager Doug Dobson stated that is why he would like to go ahead with the master plan.By the time he gets it back,he will know which way would be the best way to go. Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 6 of 11 District Manager Curtis Shook stated they do intend to move as quickly as possible with the Mesa tie-in because that gives the district a lifeline.It allows for a larger range of choices. Mr.Dietz thought they should go for everything they could get their hands on. Mr.Durbala asked if it does anything to the district's credits when they use Mesa's water. District Manager Curtis Shook stated it does not. Mr.Durbala asked if they would have to sell any of the district's credits. District Manager Curtis Shook stated that would only happen if i t was negotiated with Mesa.He thinks Mesa will give the district the wholesale rate. Mr.Eck commented he talked to one of the engineers who stated they could not give a price until they had gotten something in writing.He asked what a recovery well is. District Operations Manager Doug Dobson stated they get recharge credits.They have to draw the recharge credits from the recovery well.They are trying to get Well #6 designated as a recovery well.They would also like to get Well #5 designated as a recovery well.This way the district can recover its recharge. Mr.Eck asked what it is actually recovering,as water has to be put in the ground some place.He asked if the allotment was being made off the Central Arizona Project. District Operations Manager Doug Dobson stated the district sells water to Roosevelt Water District.They do the recharge.but the district is using Well #6 and Well #5 to withdraw or recover the credits. Water Utilities Community Facilities District Meeting Minutes of May 15.2000 Page 7 of 11 District Manager Curtis Shook stated they have to have a location for the credits. Mr.Eck asked if they considered the allotment in the same aquifer. District Manager Curtis Shook stated he believed so. Mr.Durbala asked if the district's Central Arizona Project water rights will be affected by the Indian lawsuit if it goes through. District Manager Curtis Shook stated it would not.They are irrevocable 29 or 17 years. Vice Chairperson Surra asked where that was on the agenda. Mr.Durbala stated they were talking about the recharge and he wanted to know if that would affect the recharge of Central Arizona Project water.The attorney's not here so I got away with it. District Manager Curtis Shook commented he did not get away with it. Chairperson Coleman closed the item and moved on to the district manager report. DISTRICT MANAGER REPORT District Manager Curtis Shook stated they are trying to outline all the capital needs for the utility.There are seven or eight projects they feel need to be done.There is some capital reserve and some operating capital reserve,and they will find the best way to use those.The first priority is the Mesa tie-in.There is about $1.2 million in capital needs,possibly a little bit more,and the district will be struggling with a phasing schedule so that they can be done with the monies at hand.It will be hard and he is concerned about having the money to make the capital improvements.He asked if the district got approved for WUFA financing. Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 8 of 11 District Accountant John White stated that is a multi -tiered process.The district is through the first phase and is on a priority list.The next step is to apply for the financial package itself. District Manager Curtis Shook stated that is the water improvement fund that the state has. Mr.Dietz asked if that would be for Well #6. District Manager Curtis Shook stated that was correct.They are looking at ways to deal with the arsenic problem.Well #7 ended up being a dry well,and the district spent between $80.000 to $100,000 on it.The district is looking at how they are going to phase in the capital needs and how they are paid for. They will be looking at weekly cash flow.If they are not in the black at the end of the week,then they will make an adjustment. Vice Chairperson Surra asked if the district needs to borrow any money. District Manager Curtis Shook commented they did not need to at this time.By looking at the cash flow weekly,he hopes they never get into that position. They will start from square one and take apart the weekly cash flow to get the improvements done. DISTRICT TREASURER REPORT District Finance Manager Keith Lewis had nothing to add. Mr.Eck asked what is being done with the development fee. Vice Chairperson Surra commented that is not on the agenda. Mr.Eck commented it is part of the budget report. District Manager Curtis Shook asked for a report on the balances of the different reserves and the financial statement for April. District Accountant John White gave the balances in the different reserves.A larger percentage of the increase from last year is being tied up in long term capital reserve funds.He commented there are some additional expenditures Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 9 of 11 this month,such as the backhoe and a couple of charges from Central Arizona Project.Cash flow -wise the district is pretty strong. District Manager Curtis Shook commented the capital reserve,based on fees, has gone up from $26,000 to over $200.000 in the last year.He asked how many services a month are added. District Accountant John White stated it is sporadic,but it averages about 25 services per month.Last year the district had about 2,500 or 2,600 residential units;now the district has about 2,800.He has not been able to determine what the dollar impact will be in terms of new sales for next year. New residences could possibly average $350 per year. District Manager Curtis Shook commented they are amortizing out the different developments to get an estimate on what to expect.The district initially had about 2,200 accounts.The district is growing as it now has around 2,800.He commented the board was wise in implementing the hook -in development fee. DISTRICT COUNSEL REPORT None. ADJOURNMENT meeting at 6:40 p.m. )Chairperson Coleman adjourned the ACCEPTED THIS 11TH DAY OF JULY ,2000,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 11TH DAY OF JULY Douglas COfleman Chairperson Water Utilities Community Facilities District Meeting Minutes of May 15.2000 Page 10 of 11 ,2000. 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 15th day of May. 2000.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 17th day of May,2000. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 15,2000 Page 11 of 11