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HomeMy WebLinkAbout2000-09-18 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING SEPTEMBER 18,2000 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 18,2000,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 6:08 p.m. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson Anne Surra Mr.Joe Durbala Mr.R.E.Eck Mr.John Insalaco Ms.Carol Urich Staff Present: Others Present: Mr.Rick Dietz was absent. Curtis Shook,District Manager Kathleen Connelly,District Clerk Keith Lewis,District Finance Manager John White,District Accountant William Farrell,District Counsel Doug Dobson,District Operations Manager Brian Hall,District Water Superintendent APPROVAL OF MINUTES OF JULY 11.2000 )Ms.Urich MOVED THAT THE MINUTES OF JULY 11.2000,BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 1 of 10 Mr.Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULE FOR FISCAL YEAR 2000- 2001 )District Manager Curtis Shook briefed the council on the item.The budget addresses the board's concerns about staffing and capital improvements.He believes it is a solid budget and asked for any questions. Chairperson Coleman asked how the rates compared with last year's rates. District Manager Curtis Shook stated they are the same.There are no rate increases.This is the fifth year and the district had promised to keep its rates at the same level for at least the first five years. Mr.Durbala asked if they could go one more year with the same rates. Mr.Eck commented he hoped they could go another five years. Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak.he closed the public hearing and reopened the item to board discussion. Vice Chairperson Surra asked if staff believes this budget will accomplish everything the district needs to accomplish in the area of replacing bad lines and in finding a good water source.She is still concerned about the quality of water;she believes people are more concerned with that then with the cost. District Manager Curtis Shook commented he believed they can do everything they need to this year.A Water Utilities Community Facilities District Meeting Minutes of September 18.2000 Page 2 of 10 capital fee was passed about 1.5 years ago and the account is at approximately $300,000 now.That will help the district as it moves along.In addition, they have money left over from bond money secured for other improvements and that money will be used for the Mesa interconnect and other projects that were not anticipated.They remain concerned for the need for capital improvements, but they believe they have enough money for those improvements.They intend to try to keep a reasonable reserve and they will keep the board abreast financially.The rates will not be affected this year,but if the Environmental Protection Agency drops the acceptable arsenic level,it will be costly and expensive for the district.It could cost the district between one million and two million dollars in improvements to reach those parameters. George Johnson has committed to building the water treatment plant but the project is being held up by State Land.If this cannot be started within the next six to nine months,the district may have to build the plant itself and have Johnson buy back into the system. Mr.Eck asked if it was in the budget to tie in with Mesa,and if a price had ever been received. City Manager Curtis Shook stated they are tying in with Mesa but they still have not received a price. District Operations Manager Doug Dobson stated i t is based on the engineering estimate. Mr.Eck asked if the district had received a price for what they would be paying for the water. District Manager Curtis Shook stated they do not have a purchase price. Mr.Eck commented he had been told they were waiting on a letter and then they would provide a price.The district needs an additional water supply,but he is concerned about the price they will be paying. District Manager Curtis Shook stated he does not believe they will be selling it for more than what they sell to others.He believes they will get it wholesale. Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 3 of 10 Chairperson Coleman closed the item with no one else wishing to speak. RESOLUTION NO.2000-003:ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 2000-2001 )Mr.Durbala MOVED THAT RESOLUTION NO.2000-003,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 I, 2000,AND ENDING JUNE 30,2001:DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)FOR FISCAL YEAR 2000-2001,BE APPROVED. Mr.Insalaco seconded the motion. VOTE:Unanimous. The motion carried. RESOLUTION NO.2000-004: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 opened the item to board discussion. Vice Chairperson Surra asked if the seasonal residents connect,disconnect and reconnect again each year and pay these fees every year,or do they pay a minimum amount for each of the months they are gone. District Operations Manager Doug Dobson stated most of them leave the water on all year and pay the minimum amount. Vice Chairperson Surra asked what the minimum amount is. Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 4 of 10 District Water Superintendent Brian Hall stated i t is $5.65 per month plus tax. Vice Chairperson Surra stated that is too low and it needs to be raised.She has to pay over $17 per month to keep her water on with Arizona Water.The district should be in direct competition with them. Mr.Eck commented there may be a problem near her;it may not be the same price here. Vice Chairperson Surra stated she wants it investigated. Mr.Eck commented it was higher,the previous owner went for a rate increase,but the commission denied the rate increase and took $5 off the monthly minimum.It was originally $10.65 per month. Vice Chairperson Surra stated they should be keeping step with the competitors. Mr.Eck asked if the meter reread fee was changed. District Manager Curtis Shook stated it was changed a year ago. Mr.Eck commented he was concerned as the water cost is higher than some other companies.If a customer has a leak they may call and ask for a reread,and sometimes they are given courtesy rereads. Vice Chairperson Surra commented she thought a fee was charged if the customer was at fault. Mr.Durbala thought the district gives one free read once or twice a year. Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 5 of 10 Vice Chairperson Surra asked if they were charged a fee if it was more than that. District Operations Manager Doug Dobson stated if they test the meter and the district is wrong,everything is replaced at no charge.I f the meter is correct,the customer pays for everything. Mr.Eck stated he was concerned about a customer having a water leak and their normal $40 billing now being $100.They would then call for a reread because they are unaware of the leak. Currently the district charges for the reread,he would like to see it a courtesy reread. District Operations Manager Doug Dobson stated they are doing the courtesy rereads at this time. Chairperson Coleman closed the discussion and called for a motion. Mr.Durbala MOVED THAT RESOLUTION NO.2000-004,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. Vice Chairperson Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AUTHORIZATION FOR AWARD OF PROFESSIONAL SERVICES CONTRACT TO ARCADIS GERAGHTY & MILLER FOR THE WATER RESOURCES MASTER PLAN WD 2000-02 )District Operations Manager Doug Dobson briefed the board on the item.This is the water resources master Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 6 of 10 plan.Three proposals were received.Staff recommends awarding the contract to ARCADIS Geraghty & Miller in the amount of $48,398.00 for the study. Mr.Durbala asked why only three proposals were received. District Operations Manager Doug Dobson stated everyone appears to be busy at this time and the district wanted it done right away. Chairperson Coleman closed the discussion and called for a motion. Mr.Durbala MOVED THAT THE AWARD OF BID FOR PROFESSIONAL SERVICES FOR THE WATER RESOURCE MASTER PLAN,WD 2000-02, BE AWARDED TO ARCADIS GERAGHTY & MILLER IN THE AMOUNT OF $48,398.00 AND THAT AUTHORIZATION BE GIVEN TO THE BOARD CHAIR TO SIGN THE CONTRACT PENDING APPROVAL OF THE DISTRICT LEGAL COUNSEL. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND POSSIBLE ACTION ON LOAN APPLICATIONS FILED WITH WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA (WIFA)TO INCLUDE METHOD OF REPAYMENT )District Accountant John White briefed the board on the item.Funds have been included in the budget for some of the improvements,such as the rehabilitation of Well #6 and some work in the Royal Palm Subdivision.A resolution will need to be drafted to authorize the repayment schedule over a certain period,typically twenty years. Vice Chairperson Surra asked if they would need to authorize staff to pursue the loan. Water Utilities Community Facilities District Meeting Minutes of September 18.2000 Page 7 of 10 District Accountant John White stated they would have to come back for a resolution at a later date.There are phases to the process,and the initial step is to get on the project priority list.The application has been submitted,and once they are on the list the district can apply.This item agenda is to indicate that the district is serious about pursuing the projects and that the board is aware of what is happening. District Operations Manager Doug Dobson stated one of the projects is the upgrade of the mains and the installation of fire hydrants.Another project is Well #6. DISTRICT SUPERINTENDENT REPORT District Water Superintendent Brian Hall was introduced to the board by District Manager Curtis Shook.He has 20 plus years in public works and over 15 years with water.He commented the district has a good system and good employees.Basically things are sound but some small things need changing. He has a scheduled meeting tomorrow with Arizona Department of Environmental Quality to make sure that the district will comply with monitoring standards in the future.He has instituted a new filing system which should enable them to find everything quickly.He is happy to see that the district is in the process of developing a master plan,and it seems to be practical.He was unable to find a nitrate sample for 1999.The March test showed it was way below what is allowable,but he will have to let the customers know that the water was not tested for nitrates last year.He will let them know it is a recording error only and is not a quality issue.He will attempt to keep the little things from being a -thorn in the side"of the district. DISTRICT MANAGER REPORT District Manager Curtis Shook stated they have identified the challenges for the system.He expects Arizona Department of Environmental Quality to issue a report on the coliform incident in June.He commented Brian has quickly grasped the system and seen the gaps,and he is aware the district needs standard operating procedures.He is getting the office records into shape. They now have a new budget with new people to assist,and they should be able to repair leaks in a timely fashion and do meter change outs.He commented things look better than they did five months ago. Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 8 of 10 DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT District Counsel William Farrell stated there is nothing pending and there have been no claims. District Manager Curtis Shook stated there is no litigation but there have been some claims.One of the old parks put in a claim to change out some reverse osmosis filters and they have changed out a number of reverse osmosis filters.He gave approval for the district to pay for those.He felt confidence needed to be restored in the system.This cost the district $3,000 to $4,000. District Counsel William Farrell reminded the board that under the new open meeting law they can hear the reports but they cannot ask any questions. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:38 p.m. ACCEPTED THIS 1 DAY OF OCTOBER6TH ,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 16TH DAY OF OCTOBER Douglas Copman Chairperson ATTEST: Kathleen Connelly Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 9 of 10 2000 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 18th day of September,2000.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 20th day of September,2000. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 18,2000 Page 10 of 10