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HomeMy WebLinkAbout2001-08-06 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING AUGUST 6,2001 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 August 6,2001,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 6:03 p. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson Surra Mr.Rick Dietz Mr.Joe Durbala Mr.R.E.Eck Mr.Brian Milkey Ms.Carol Urich Staff Present:Curtis,Shook,District Manager Kathleen Connelly,District Clerk Keith Lewis, District Finance Manager Doug -Dobson, _District Operations Manager John White District Accountant Brian Hall,District Water Superintendent Gregory Frech,Water Operator Supervisor Others Present: APPROVAL OF MINUTES OF JULY 9,2001 - MINUTES OF JULY 9.2001,BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of August 6,2001. - Page 1 of 8 )'Ms.Urich MOVED THAT THE Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion Carried. PROJECT WD 2001-05, APPROVAL OF A • PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS GERAGHTY & MILLER FOR A WELL SITING STUDY IN AN AMOUNT NOT TO EXCEED $23,914.00 )District Water Superintendent Brian Hall briefed the board on the item.The original quote was higher but Staff was able to reduce the bid by about $2,000.This study will provide a list of sites where wells should be drilled,ranking them according to criteria. Chairperson Coleman opened the item to discussion.There being no discussion,he called for a motion. Mr.Dietz MOVED THAT THE . PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS GERAGHTY & MILLER FOR PROJECT WD 2001-05,WELL SITING STUDY,BE APPROVED IN AN AMOUNT NOT TO EXCEED $23,914.00. Vice Chairperson Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO.2001-002, AUTHORIZING THE ESTABLISHMENT OF A 457 DEFERRED COMPENSATION PLAN .) )District Manager Curtis Shook briefed the board on the item.This plan would be through the ICMA Retirement Corporation,the same as what the city employees have.They will be able to offer the same deferred compensation to district employees that current city employees enjoy. to discussion by the boar Chairperson Coleman opened the item Water Utilities Community Facilities District Meeting Minutes of August 6,2001 Page 2 of 8 . •Mr.Durbala asked if the contributions would go up to the maximum allowed by federal law. District Manager Curtis Shook stated i t is on a schedule now where the maximum will be up to $8,500 this year and will top at $12,000 by the year 2005.It is the same for the city employees. District Water Superintendent Brian Hall stated i t is under the same rule as the city.The resolution is almost identical to the resolution passed by the city council for the city employees. Only minor word changes were requested by ICMA because of changes in their legal outlook.It has the same rules and is the same trust. Chairperson Coleman closed the discussion with no more comments and called for a motion. Mr.Durbala MOVED THAT RESOLUTION NO.2001-002,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,CITY OF APACHE JUNCTION,ARIZONA,AUTHORIZING ESTABLISHMENT OF A 457 DEFERRED COMPENSATION PLAN,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT WATER SUPERINTENDENT REPORT District Water Superintendent Brian Hall introduced Gregory Frech,the new Water Operator Supervisor.He gave an update on the water purchase With the City of Mesa.There will be two different agreements with Mesa.One will initially allow Apache Junction to purchase water from them at either a commercial rate or a processing cost to treat the CAP water,which would be delivered through Arizona Water Company.The other_agreement would provide -- the possibility of taking water through the direct connection.with Mesa. Water Utilities Community Facilities .District Meeting Minutes of August 6,2001 Page 3 of 8 Arizona Water Company is also working on a wheeling agreement;they estimate about $26,0.00 in capital improvements to the pump station at Crismon to enable them to deliver the additional water needed for Apache Junction.They would like the district to support all or some of those capital costs.This may not be a cheap source of water.The most reasonable way would be to investigate wells and put in new wells that have a successful yield.The first draft of the Mesa agreement should be ready in the next week or so. District Manager Curtis Shook stated he will become more involved in the process once they have a working draft. District Water Superintendent Brian Hall thanked the District Manager for talking to the City of Mesa and getting them moving on the project.He gave an update on the water system master plan.Phase one has been changed to move conservation forward.He asked if the board had any more changes or if this could move forward towards adoption. Mr.Eck commented he would like to concentrate on where they are at now and get in the water from Mesa,and find out the price and see the connection fee there.They are having ARCADIS go after the new well,which is part of the plan,and he believes that is the primary concern.He is not sure they need to be going in other directions that the plan calls for at this time. District Manager Curtis Shook stated they are pushing hard on the well part of it and the -Mesa discussions.He thinks that the plan presented with its changes is a good tool,but he agrees with Mr.Eck that staff should come back to the board with a set of proposed actions.They need an action plan to carry out the specifics of the master plan.He commented if they believe the master plan with the changes is pretty well done,the next step would be for staff to come back in a reasonable amount of time with a specific plan of action. Mr.Eck commented he thinks the plan is a good guiding philosophy,but it is based on the "best"situation.Many companies cannot do what they want in that plan. •District Water Superintendent Brian Hall stated staff. recognizes that:A master plan sets goals,but they are at the high end of the obtainable range. They recognize they will not accomplish all of them., and certainlynot within the time line prbposed.The master plan -is a guide to the action plans. Water Utilities Community Facilities District Meeting Minutes of August 6,2001 Page 4 of 8 Vice Chairperson Surra commented 'the master plan is for a long time frame. Staff needs to look at shorter, time frames and make measurable and attainable goals within the larger time frame.They need to be able to meet some goals. District Water Superintendent Brian Hall 'commented once he is satisfied that the board accepts this as a 20 year plan,he will then create an action plan,. His operational plans generally run every 5 years. Vice Chairperson Surra 'asked if they need to adopt this as a 20 year plan first. District Water Superintendent Brian Hall stated that was the intent.This is not a concrete document and i t can be changed,it will give us some goals. Mr.Dietz stated that would give flexibility for 5 years down the road. District Manager Curtis Shook stated it will be-constantly changing.Staff needs to come back with a short and intermediate term plan.They may do more in one year than they think,so the next year may be different than what had been anticipated.Some things become more important,others less.This will 'assure the board of a set direction to go in. Mr.Eck commented he would like to continue to search for a well and the short list should continue negotiations for the treatment plant and the possibility of.gOing in with Mesa or having the district go on its own regarding the treatment plant.The arsenic is back and it looks like it will be very low. The only way to not deal with that is to use surface water.He would also like to see the backup generators on the booster stations remain on that list. District Water Superintendent Brian Hall stated he corrected the draft budget with John White and they ha-ve $36,000 for a backUp generator at the booster station. Mr.Eck commented that backup generator had been discussed and approved earlier. District Water Superintendent Brian Hall stated he had been told that,but it was not in the original 2000-2001 budget that he had been given.He continued his report with, their needing to be put water .back in the: ground or they will reach a point where they will be told they cannot take any more water out of Water Utilities Community Facilities District Meeting Minutes of August 6,2001 Page 5 of 8 the ground.They need to look at surface water,but there will come a time when they will need all the water they can get.They have sent the paperwork to the Department of Water Resources to have the wells designated as recovery wells.This will pull stored water credits out with the sale of CAP water to New Magma Irrigation District who then irrigates with that water.The district receives a 95%credit.If growth goes to the south,the district will need substantial water in the future.Credits can be.obtained by wastewater effluent being recharged into the ground;he asked if staff could reopen the discussion with Superstition Mountain Communities Facilities District on purchasing some wastewater effluent to be recharged. The board consensus was favorable. District Manager Curtis Shook stated the first problem was the sewer district had declared bankruptcy and they had to go through the forbearance agreement. Later there was a question as to when they would become solvent enough for All State to allow them to make decisions to sell assets of the district.He believes they are now at the point where there is enough wastewater effluent each day to where it might be worth it.There have been ongoing discussions by district counsel and their counsel. Mr.Durbala commented the golf course was originally supposed to be getting the first of the gray water coming from there.That was part of the agreement from when they got the land from State Trust.The golf course is now using. part of a CAP allocation. District Manager Curtis Shook stated they are in Arizona Water's district and there were disagreements 6 or 7 years ago regarding what that meant.The CAP allocation is coming from Arizona Water, Mr.Durbala asked if they could be forced to look at using the gray water to water their course District Manager Curtis Shook commented they could look at the agreement to see how valid it still is. Mr.Durbala asked if they were putting a lot of the district's CAP water into the ground over by SRP. Water Utilities Community Facilities District Meeting Minutes of August 6,2001 Page 6 of 8 District Water Superintendent Brian Hall stated he was not sure which SRP complex he meant. Mr.Durbala stated it is on the north side of Univers'ity in Phoenix. District Water Superintendent Brian Hall stated the district's CAP water leaves the canal south of here by Queen Creek;the allotment is 2,919 acre feet.They sold 2,883 acre feet to New Magma.The balance,plus some contract water,is sold to construction companies. Mr.Durbala asked how many credits the district:, has left. District Water Superintendent. Brian Hall stated they have about 11,000 acre foot credits right now.They have actually been putting credit in instead of withdrawing it..He briefed the board on how the process works.. Mr.Durbala asked if some of the major cities were now blending their sewage water after i t has gone through the treatment process. District Water Superintendent Brian Hall stated he is not familiar with that. He has heard of them using the wa8tewater effluent for recharge credits,and then pumping that water out from nearby wells used as recovery wells. Mr.Durbala commented he thought he had read an article about a year ago regarding Phoenix mixing in 12-14% of their, sewage water.• 'District Water Superintendent Brian Hall -commented thatWould have to be mixed with their potable water,but he is not aware of. it. Ms.Urich and District Manager Curtis Shook discussed the agenda transmittal form and a suggestion was made to change it. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. Water Utilities Community Facilities District Meeting. Minutes of August 6,2001 Page 7 of 8 ADJOURNMENT ) ). Chairperson Coleman adjourned the meeting at 6:37 p.m. ACCEPTED THIS 4TH DAY OF SEPTEMBER ,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 4TH DAY OF SEPTEMBER ATTEST: Kathleen Connelly District Clerk Douglas lloleman Chairperson 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 6th day of . August,2001.I further certify that the meeting was duly called and held -and that a -quorum was present. Dated this 13th day of August,2001. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 6,2001 Page 8 of 8