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HomeMy WebLinkAbout2002-03-04 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING MARCH 4,2002 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 March 4.2002,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 Mr.Brian Milkey Ms.Carol Urich Staff Present: Others Present: Curtis Shook,District Manager Kathleen Connelly,District Clerk Keith Lewis,District Finance Manager Brian Hall,District Water Superintendent John White,District Accountant APPROVAL OF MINUTES OF DECEMBER 3,2001 )Ms.Urich MOVED THAT THE MINUTES OF DECEMBER 3,2001,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 1 of 9 The motion carried. CONSIDERATION OF AWARD OF BIDS FOR PURCHASE OF ONE NEW PICK-UP TRUCK ON STATE OF ARIZONA PURCHASING CONTRACT FROM ED MOSES DODGE FOR $18,652.18 INCLUSIVE OF ALL TAXES AND FEES AND ONE NEW UTILITY BODY FROM DRAKE EQUIPMENT OF ARIZONA FOR $4,086.53 INCLUSIVE OF TAX )District Water Superintendent Brian Hall briefed the board on the item.This will replace the oldest pick- up truck in the fleet that has over 150,000 miles on it.They have a 2000 Dodge pick-up that has substantial body damage on the bed of the truck.They propose to install a utility body on the new truck and use the bed from the new truck to repair the 2000 Dodge pick-up.Either the trucks have gone up in price or he overlooked adding the sales tax when he compiled the budget as he is a few hundred dollars short of the proposed budgeted amount.He is recommending they purchase the truck. Chairperson Coleman called for any discussion on the item.There being no discussion,he called for a motion. Mr.Eck MOVED THAT THE AWARD OF BID FOR THE PURCHASE OF ONE NEW PICK-UP TRUCK ON THE STATE OF ARIZONA PURCHASING CONTRACT BE AWARDED TO ED MOSES DODGE IN THE AMOUNT OF $18,652.18 INCLUSIVE OF ALL TAXES AND FEES:AND THE PURCHASE OF ONE NEW UTILITY BODY ON THE STATE OF ARIZONA PURCHASING CONTRACT BE AWARDED TO DRAKE EQUIPMENT OF ARIZONA IN THE AMOUNT OF $4,086.53 INCLUSIVE OF TAX,BE APPROVED. Vice Chairperson Surra SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CONSIDERATION OF PROFESSIONAL SERVICES AGREEMENT WITH STANTEC CONSULTING INC. FOR WATER TRANSMISSION MAIN DESIGN Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 2 of 9 )District Water Superintendent Brian Hall briefed the board on the item.This is to address the design of a direct connection between the district and the City of Mesa.Additional money is available from other projects that are not moving as quickly as anticipated this budget year and that would enable this project to proceed.The proposal came in at $112.890 and originally $100,000 was budgeted for this project.He would also like approval of an additional 10%for any unforeseen changes in scope. Chairperson Coleman called for any discussion. Mr.Eck asked if this would go from the tie-in to Idaho and Baseline and connect there. District Water Superintendent Brian Hall stated this design is from somewhere near Baseline and Signal Butte,in an area southwest of the intersection that is in a power line easement or right-of-way,that would include a booster station design and drawings for pipelines to the east,including over the Central Arizona Project Canal,to a valve box at Baseline and Idaho.The valve box would allow the district to introduce the water directly into the distribution system,or open a valve into the transmission line of Well 6 to blend that water,or continue an 8" line from that intersection approximately a half -mile east to put a second direct tie-in to the million gallon tank on Baseline.This would allow them to repair the booster station at 16th Avenue if needed in the future and not have to take the system down. Mr.Eck asked how much usage they will get from this. District Water Superintendent Brian Hall stated this continues to evolve.They have had to buy more water the past two months than he could foresee.He would estimate the need increasing each year as the city grows. Mr.Eck commented he would like to see the district have the capabilities to use a million gallons a day i f needed. Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 3 of 9 District Water Superintendent Brian Hall stated they will have that capability.It will be designed to accommodate their entire Central Arizona Project allotment.The pump station will be set up with variable frequency drives and with modern electronics that can be controlled through SCADA in the future.It will also be designed to add pumps in the future. water everyday from Arizona Water Company. Hall stated i t comes in spurts. average is. Mr.Dietz asked if we are purchasing District Water Superintendent Brian Mr.Dietz asked what the weekly District Water Superintendent Brian Hall stated they purchased some last July,but not again until two weeks in November.They also purchased some for about a week in January.It has been off again on again in February.They did not get the rain in February as they did last year and they saw a real difference in water demand.They are using more water through that connection than they have in the past. Mr.Durbala asked if they would be basically pumping all of the water in the future from Mesa. District Water Superintendent Brian Hall stated once they have a direct connection and do not have to wheel the water,they can purchase water and have it treated as cheaply as they can pump it out of the ground,if you do not include the capital costs to put this together.He would suggest continuing to use Well 5 in order to introduce this slowly.He does not want to scour the pipes from the change in water and turn everything black.He does not foresee doing away with the wells completely. Mr.Durbala asked if they would be looking at other wells in the future in case Mesa cannot provide the district with the water at that time. Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 4 of 9 District Water Superintendent Brian Hall stated they will and he will discuss that in his report.Well 6 will not be of much use to the district once the new arsenic regulations go into effect.They will have to keep i t running and blend i t so that i t is available in case of emergencies.They need to keep the options and resources open. Mr.Durbala asked how much cheaper this water would be in the long run. District Water Superintendent Brian Hall stated it depends on the growth.As the system grows,i t pays for the improvements.The district currently pays fifty cents per thousand gallons produced,roughly.It would cost the district forty-three cents per thousand gallons to purchase the water from Central Arizona Project and have Mesa treat it and deliver it. Mr.Durbala commented they would not need to look at a rate increase for a few years. District Manager Curtis Shook stated that would not trigger a rate increase,but operating costs,capital costs and debt management could. Vice Chairperson Surra asked if they had reached their five year mark yet. District Manager Curtis Shook stated i t has been 6.5 years. Vice Chairperson Surra stated they had made a promise they would make improvements and provide water at the same rate without raising rates for five years.She is pleased that they have already gotten there. District Water Superintendent Brian Hall stated staff will be presenting a report next month on things they would like to do to get them more in line with other east valley communities.They will try to encourage conservation. Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 5 of 9 Mr.Durbala commented he would not like to see a rate increase until they start using the Mesa water. District Water Superintendent Brian Hall stated this would not incur an increase. Mr.Durbala stated that would give them a better quality of water so they might not mind the rate increase at that time. Mr.Eck agreed. Vice Chairperson Surra commented the agreement will improve the quality of the water and they have replaced the pipes,giving them the opportunity to make better pressure available and have hydrants in areas where they could not have them before.It is a safety issue.People will pay for safety. Mr.Durbala asked if they would have any liability if the pressure cracks some of the water lines in the older homes. District Water Superintendent Brian Hall stated they would if they increased the pressure significantly.He intends to only boost the water pressure by five pounds once the lines are in. That is not a significant difference.The volume will be affected,preventing the pressure from dropping at peak times of the day. District Manager Curtis Shook stated any rate increase sought would be tied to capital improvements already made showing services being better than what was provided before. Chairperson Coleman closed the discussion and called for a motion. Vice Chairperson Surra MOVED THAT THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE APACHE JUNCTION WATER COMPANY AND STANTEC CONSULTING,INC.FOR THE DESIGN OF A WATER TRANSMISSION MAIN FROM THE AREA OF SIGNAL BUTTE AND BASELINE TO IDAHO AND BASELINE WITH ADDITIONAL PIPING TO THE STORAGE TANK AT 575 E.BASELINE AVENUE,IN THE AMOUNT OF Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 6 of 9 $112,890.00 PLUS AN ADDITIONAL 10%IN THE AMOUNT OF $11.289.00 FOR POTENTIAL CHANGES IN THE SCOPE,ETC.,FOR A TOTAL AMOUNT OF $124,179.00,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT WATER SUPERINTENDENT REPORT District Water Superintendent Brian Hall stated the City of Mesa has okayed the wheeling agreement,i t is currently with Bill Farrell for his approval, and Arizona Water Company made a couple of language changes to clarify things and has agreed in substance with the agreement.The agreement does call for the district to pay for some capital improvements,including upsizing a pump at Crismon and improving the 6"connection at Southern and San Marcos. Automatic valving must be installed in order to control the delivery.It will all be metered.They have looked at the trends of water usage over the last five years to determine how much water will need to be purchased.The district will spend $1.44 per thousand gallons instead of $2.57 per thousand gallons.They are waiting on the local Arizona Water office which has sent their figures to the Phoenix office and is trying to obtain the capital costs. They will hopefully have the agreement ready for signing in the next month. Mr.Eck asked for his estimate on the capital costs. District Water Superintendent Brian Hall stated it would be approximately $25,000.That includes automatic valving at our connection and rebuilding one or two pumps,plus an enclosure for the controls near the vault by the school property.The power service to that was not included in the capital costs. District Water Superintendent Brian Hall gave an update on the progress on the exploration and construction of a new well.He will send a memo on the highlights of this to the board this week.He provided the board with a written report on the project.The report states there is no ideal place to drill a well,but it provides information on the best places to drill future wells.They have gathered the forms necessary to permit a well and they need to decide whom they will use as a well driller in order to send those permits Water Utilities Community Facilities District Meeting Minutes of March 4.2002 Page 7 of 9 in.There is the possibility they can change their mind on the well driller later,but they need to get the permits in as soon as possible. Ms.Urich asked if he had a target date. District Water Superintendent Brian Hall stated he had hoped they would have the test well done by the end of this fiscal year,and that they would be drilling production by the end of the fiscal year.He now hopes to have the property acquired by the end of the fiscal year.He is proposing leasing the properties with the option to purchase if the well does pan out.He still hopes to have a well to determine the quality and yield before the end of the fiscal year. DISTRICT MANAGER REPORT District Manager Curtis Shook stated he is scheduling a meeting for the board to meet in executive session to talk about the utility's assets and the use of those assets. DISTRICT TREASURER REPORT District Finance Manager Keith Lewis stated he had given them the financial report for the year ending June 30,2001.He stated if they had any questions,they could get with the district clerk on them so they could be on the next agenda,or they could advise him previous to the meeting so he could have the answers available for them.The report has been submitted to the Finance Officers Association to try for an award for the water district. Mr.Durbala asked if they could call him if they have any individual questions. District Finance Manager Keith Lewis stated they could. DISTRICT COUNSEL REPORT None. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:36 p.m. Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 8 of 9 ACCEPTED THIS 18TH DAY OF MARCH ,2002,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 18TH DAY OF MARCH 2002. ATTEST: Kathleen Connelly District Clerk Douglas ColeTeman Chairperson 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 4th day of March,2002.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of March,2002. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of March 4,2002 Page 9 of 9