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HomeMy WebLinkAbout2001-04-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING APRIL 16,2001 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 April 16,2001,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.Rick Dietz Mr.Joe Durbala Mr.R.E.Eck Ms.Carol Urich Staff Present: Others Present: (Mr.John Insalaco was absent.) Curtis Shook,District Manager Kathleen Connelly,District Clerk Doug Dobson,District Operations Manager Keith Lewis,District Finance Manager John White,District Accountant Brian Hall,District Water Superintendent APPROVAL OF MINUTES OF MARCH 5,2001 )Vice Chairperson Surra MOVED THAT WE APPROVE THE MINUTES OF MARCH 5,2001,AND THAT WE MOVE ON THIS AGENDA THAT WE MOVE ITEM 5 TO AFTER NUMBER 9. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 1 of 9 Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND CONSIDERATION OF AWARD OF PROFESSIONAL SERVICES CONTRACT FOR PROJECT WD 2001-03,ROYAL PALM AREA WATER SYSTEM UPGRADE DESIGN TO ARCADIS GERAGHTY & MILLER FOR $356,500 FOR THE DESIGN AND CONSTRUCTION MANAGEMENT OF THE PROJECT ) )District Water Superintendent Brian Hall briefed the board on the item.The district has received preliminary approval from Water Infrastructure Funding Administration.They have asked the district to work towards the design.The proposal from ARCADIS Geraghty Miller is for the design of the project and construction management. The engineer's estimate of actual construction costs with an additional possible alternate of a loop for Old West Highway is $2.6 million.The estimated total cost is $3.2 million;this proposal would keep the district under the estimate.The district had put $125.000 in the budget to change old surfaces to copper in the area;this would be included in the larger project. He recommended moving ahead and beginning the design in order to stay on track with the Water Infrastructure Funding Administration loan. Mr.Eck asked if the $125,000 would go toward the $356,500. District Water Superintendent Brian Hall stated it would give the district the cash to start the project and it would be reimbursed. Mr.Eck asked where the difference was coming from. District Water Superintendent Brian Hall stated the funding is coming from the Water Infrastructure Funding Administration loan. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 2 of 9 Mr.Eck asked where the other money would be coming from as the district needs to have the entire amount before the loan reimburses the district District Water Superintendent Brian Hall stated they are assuming the approval for the loan will be in place before the $125,000 has been expended.The design portion is $188,000.The design process will take five months.Their board should meet in June for approval of the loan.The district can ask the consultant to slow down if necessary until the paperwork is completed. Mr.Eck asked if the district would be liable for the $356,500 if the loan does not come through. District Water Superintendent Brian Hall stated i t is a time and material contract.The district can stop the process at any time and not lose anything that had been completed.He thought this was to be a design and build,but the Water Infrastructure Funding Administration apparently wants to see the designs and in some cases they want to see Arizona Department of Environmental Quality approval.Their staff feels the district can move ahead with the project.This has already been identified as a fundable project. Chairperson Coleman closed the discussion and called for a motion. Ms.Urich MOVED THAT THE PROFESSIONAL SERVICES CONTRACT FOR PROJECT WD 2001-03,ROYAL PALM WATER AREA WATER SYSTEM UPGRADE DESIGN,BE AWARDED TO ARCADIS GERAGHTY & MILLER FOR $356.500 FOR THE DESIGN AND CONSTRUCTION MANAGEMENT OF THE PROJECT. Vice Chairperson Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT WATER SUPERINTENDENT REPORT Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 3 of 9 District Water Superintendent Brian Hall stated the City of Mesa is agreeable to sell the district water.They are drafting an intergovernmental agreement allowing the sale of water at the commercial rate and the opportunity to buy into a treatment plant if another is built in the area and the district wishes to do so.Mesa would expect the district to take a constant delivery, however.This would be difficult with the amount of storage that the district has.Arizona Water is willing to pass the water through their pipes from Mesa.Mesa needs to replace some pumps in order to do this,so there may be some delay in that.If a permanent interconnect is done by installing a pump station and a pipeline from Mesa,Arizona Water has expressed some interest in partnering with that.The cost of all this will have to be compared with the district building its own plant next to the Central Arizona Water Project canal.The district is close to having another source of water available within the next few months with these agreements. Mr.Dietz asked if the agreement was supposed to have been discussed about a year ago and the district was supposed to be discussing the water line only at this time. District Manager Curtis Shook stated everything had been put on hold when the district started doing the master plan. District Water Superintendent Brian Hall stated the short term solution was wheeling the water through Arizona Water pipes.The longer term is either a long term agreement with Mesa versus building our own wastewater treatment plant. Mr.Dietz commented he would like to know the length of time and the costs involved. District Water Superintendent Brian Hall stated it will take some time to install the water lines and pumping station,whereas these others are already in place.They do not have to start taking water immediately if they get an agreement in place:it would give the district water when and if it was needed. Mr.Dietz asked if they still have capital facilities money available for the water district that are just for the water treatment plant. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 4 of 9 District Accountant John White stated there is about $1,100 for the capital facilities fees for the new connections. District Manager Curtis Shook asked how much was left out of the original bond money. District Accountant John White stated approximately $500,000. District Manager Curtis Shook commented the bond money was not anticipated to go towards the treatment plant,but as there are savings after everything had been accomplished that the bond money was put towards,they can apply the remainder to whatever projects we choose to do. Mr.Dietz commented he thought they had set aside something on new connections and fees that went in strictly for capital improvements.He thought they were to go towards building this plant. District Manager Curtis Shook stated there is about $560,000 in hook -in fees and interest on those fees. Mr.Durbala asked if he had any information on the portable treatment plants that could be put in at about half the cost of major plants. District Water Superintendent Brian Hall stated he did not have that information back yet.The Central Arizona Project water needs to be evaluated to see if a membrane treatment or the standard treatment would work.There is considerable difference in the cost of the package plan if it requires a membrane treatment. Mr.Durbala commented the package plan could be on line faster than they would get the connection built. District Water Superintendent Brian Hall stated he believed the construction time would be similar.There would be less obstacles in the way of putting a plant on property the district already owns. Mr.Durbala asked if the costs would be similar whether they use the interconnect,build their own plant,or use the portable plant. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 5 of 9 District Water Superintendent Brian Hall stated they now have an emergency connect with Arizona Water that would take care of any immediate pressure this year.Once the information is together,the board will decide where the chunk of money will be spent.He wants to have the figures on construction and operation costs.The dollar amount may be slightly higher having our own plant,but we would have the advantage of having control over it. Mr.Durbala commented the district can still wheel it from Mesa through Arizona Water until the other information is brought back. District Water Superintendent Brian Hall stated that is correct.The district is going ahead with the wheeling agreement and the agreement with Mesa. District Manager Curtis Shook stated they are working on acquiring new water supplies in declining order,taking care of the emergency first and then long range.The district will then have to determine what kind of plant it needs. Mr.Durbala asked what is done with the Central Arizona Project water allocation now. District Manager Curtis Shook stated the district does not use any of it except for what they are pumping into the zone to get credits for. District Water Superintendent Brian Hall stated they sell most of it to New Magma Irrigation District.That is considered a recharge that gives the district credit. District Operations Manager Doug Dobson stated they were originally looking at just tying a line in with Mesa.Then the district looked at what would be the cheapest and fastest way to get water.There would be no mains needed to get the water from Arizona Water and there already is an emergency tie in. Therefore the agreement with Arizona Water was pursued in order to get water in case it was needed immediately.They do not want to be in the position of having to depend on someone else to get water.They now have the time to look at what the district needs to accomplish its goals. Mr.Eck commented a lot of questions will be answered when it is determined if Mesa will give the district the commercial rate or charge something else. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 6 of 9 District Water Superintendent Brian Hall stated it will determine how fast the district wants to push forward with the rest of it if the rate is too high. The concern is to have the water available.The district is okay for short term through Arizona Water,but long term needs to be determined.He commented the block wall is in with one coat of paint on it for well site #5. The contractor should be back this week to complete the paint job and the grading.The gates will then be hung and the district will move in. Mr.Dietz asked if the district had gotten a cost on the water from Arizona Water. District Water Superintendent Brian Hall stated there were three high demand weekends in a row and it took 300,000 gallons for the district to catch up. Mr.Dietz asked if this is the problem the district is going back to the contractor on. District Water Superintendent Brian Hall stated that is correct:it amounts to $771 gross.The district sold that at a profit though it paid retail for it. The district makes $1.31 per thousand gallons.The district took another 500,000 gallons that weekend,but it has been diminishing each weekend.The total bill was a little over $2,000,and the water was sold for a little over $3,100. Mr.Dietz commented he just wanted to make sure the contractor got charged for the water. District Water Superintendent Brian Hall stated he has.He also wants to negotiate for some additional grading and a change order on a wall he has built.He will have to pay for the additional water first.The district may consider the value of the change and bill him the difference.The district provided to the consultant an existing computer model system as part of the water system master plan.However,the information on the hard drive was missing and the back-up disk with the information on it is also missing.The model had to be recreated and some discrepancies were found.The consultant now has the corrected model and they will be 60% completed by the end of this month and have 90% completion around mid -May.The final version with the presentation to the board will be no later than June 25.The meeting is tentatively scheduled for June 18. Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 7 of 9 District Manager Curtis Shook stated the master plan will give the district all of its options and it will be put together for this year's budget. District Water Superintendent Brian Hall commented they had a pre -project meeting on March 16 for the rehabilitation of well #6 with the consultant and the sub -contract pump service and they are working on clearing up the misunderstandings that were discovered.They are having a meeting on April 18 with a different pump contractor that is more flexible and more in line with the original proposal. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. EXECUTIVE SESSION AT 6:30 P.M.MONDAY APRIL 16,2001.IN THE CITY CONFERENCE ROOM FOR THE PURPOSE OF ANNUAL PERFORMANCE EVALUATION FOR THE DISTRICT MANAGER )Vice Chairperson Surra MOVED THAT WE GO INTO EXECUTIVE SESSION IN THE CITY CONFERENCE ROOM FOR THE PURPOSE OF ANNUAL PERFORMANCE EVALUATION FOR THE DISTRICT MANAGER IMMEDIATELY FOLLOWING ADJOURNMENT. VOTE:Unanimous. The motion carried. ADJOURNMENT meeting at 6:40 p.m. Mr.Durbala SECONDED THE MOTION. )Chairperson Coleman adjourned the Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 8 of 9 ACCEPTED THIS 9TH DAY OF JULY ,2001,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 9TH DAY OF JULY Douglas Copan Chairperson ATTEST: Kathleen Connelly District Clerk WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES CERTIFICATION ,2001. 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 16th day of April,2001.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 20th day of April 2001. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of April 16,2001 Page 9 of 9