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HomeMy WebLinkAbout2002-06-04 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING JUNE 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 June 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 Mr.Rick Dietz Mr.Joe Durbala Mr.R.E.Eck Mr.Brian Milkey Ms.Carol Urich Staff Present: Others Present: (Vice Chairperson Anne Surra was absent.) Interim District Manager George Hoffman Kathleen Connelly,District Clerk Keith Lewis,District Treasurer Doug Dobson,District Operations Manager Brian Hall,District: Water Superintendent John White,District Accountant APPROVAL OF MINUTES OF MAY 6,2002 MINUTES OF MAY 6,2002,BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 1 of 11 . )Mr.Eck MOVED THAT THE Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. REQUEST FOR AUTHORIZATION TO REJECT ALL BIDS FOR PROJECT WD 2002-02 (EMERGENCY GENERATOR )District Water Superintendent Brian Hall briefed the board on the item.He stated there were some errors in the bid speculations calling for two different generator sizes.It will have to be re -bid.He had contacted some vendors and learned that the district can get by with a smaller generator than originally bid,saving the district some money. Chairperson Coleman called for any 'discussion on the item..There being no discussion,he called for a motion. Ms.Urich MOVED THAT AUTHORIZATION BE GIVEN TO REJECT ALL BIDS FOR PROJECT WD 2002-02 (EMERGENCY .GENERATOR)DUE TO A DISCREPANCY IN BID SPECIFICATIONS ANDJHAT THE ITEM BE RE -BID. Mr.Dietz SECONDED THE MOTION. VOTE:.Unanimous. The motion carried. AUTHORIZATION FOR PAYMENT TO THE CITY OF APACHE JUNCTION IN THE AMOUNT OF $20,000 •FOR ELECTRONIC BASE MAPS )Water Superintendent Brian Hall briefed the board on the item.The city engineer created new base maps last year which also came with an electronic version of the city.The district indicated it would like to support that and use some of what was :produced. This should allow them to have maps to scale with the water lines and valves drawn in.They still need to add the "water layer"drawn in.The maps are current to March 2002.The city is asking $20,000 for the map.It was not budgeted for as a separate item,but money is available in the regular operational maintenance budget. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 2 of 11 Chairperson Coleman opened the item to discussion.There being no discussion,he called for a motion. Mr.Eck MOVED THAT AUTHORIZATION FOR THE PAYMENT TO THE CITY OF APACHE JUNCTION IN THE AMOUNT OF $20.000 FOR ELECTRONIC BASE MAPS BE APPROVED. Mr.Milkey SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PRESENTATION AND DISCUSSION ON WATER SYSTEM NEEDS TO INCLUDE A HISTORY OF IMPROVEMENTS,FUTURE NEEDS AND CURRENT/ FUTURE RATES AND CHARGES )Water Superintendent Brian Hall briefed the board on the item.He gave a powerpoint presentation on the item. He commented the district wants to produce a high quantity of water of high quality.Goals and objectives of the district include meeting current demands,keeping pace with the rapid growth,showing customers that improvements are being made in the district,and preparing financially for future needs.The current rates haye been held for almost seven years while making great strides in the system improvements and attaining sufficient staff to respond more quickly to leaks and other customer concerns.Funding will be an issue as the district grows.The options available are to not raise the rates,an across the board increase,or a selective increase in certain rates and fees.To prevent i t from falling behind the district should not wait too long before increasing rates.Staff recommends doing -a selective increase. The basic consumption rate will stay the same with some graduation for higher consumption to promote conservation.He commentedon the differences in the meter base rates which are dependent on the size of the water line and meters. Staff recommends raising the 5/8 meter base rate to $9.95 per month and all other meter base rates stay the same.This will provide approximately 63% of annual funding necessary to service the WIFA loan.People with limited income will generally not use enough water to pay a graduated rate.The average usage is 6,000 to 7,000 gallons a month,and the graduated rates start at 10,000 gallons a month.Several charges and fees that need to be looked at include system connection fee.He briefed the board on how the development Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 3 of 11 ';+.• fees are formulated.He commented they would like to have the.connection fees separate from service and meter installation fees in order to -assist with proper funding available.They have proposed substantial increases on the larger meter sizes.The fees will help with expansion in the future.They are increasing the capital facility fee fund.approximately $500,000 a year, giving them $1,000,000 in 20 years,but a well and interconnect are needed that will use half of that money.Another fee that was increased is, permit fees in county islands.Currently they pay nothing,but the city has to pay $50 to $60 to get a permit for it. Ms.Urich asked what wbuld happen i f someone wants 'a one -inch. Mr.,Eck commented he believed it was in the plumbing code_ Water. Superintendent Brian Hail Stated i t is in the plumbing code, but he does riot want. to; have a loophole. Ms::Urich:,aSked if there was something in writing precluding their use of a one -inch. stated i t is just in the plumbing code. would take care of it. stated it would. take care of i t now. Water Superintendent Brian Hall Ms.Urich asked i f .the plumbing code Water Superintendent Brian Hall Mr.Durbala asked why i t does not Water Superintendent Brian Hall stated it does.Other cities state i t is just a safeguard. Chairperson Coleman asked what percentage of customers are on the 5/8ths. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 4 of 11 Water Superintendent Brian Hall estimated at least 60%. District Accountant John White stated a larger percentage is getting the larger gauges as the city grows. Water Superintendent Brian Hall stated they are going to the three-quarter inch meter,and they are asking with those that have irrigation to put in a three-quarter inch meter.The older sections of town have the 5/8th gauge.He believes raising the rates $4.30 a month is a reasonable step after seven years. Mr.Dietz asked if they dropped back down to a rate of $3.88 per gallon for 100,000 gallons and up. Water Superintendent Brian Hall stated they did that so they would not have a lot of different rate structures for industrial or commercial.Another accepted way of charging Customers is to have.a residential rate and a graduated rate for commercial..He believes there will be additional rate increases in the future.He thinks raising rates by 10%in steps is easier. Mr.Durbala commented it may be a good time to push water conservation with the rates going up..He asked i f they still require a $100 deposit for one year. Water Superintendent Brian Hall stated i t has been variable.They have been estimating what the water usage would be and then asking for a deposit based on that estimate. Mr.Durbala asked if they still hold onto the deposit for twelve months and are paying three percent. District Accountant John White stated they are presently paying six percent.It is a logistical issue.The current computerized billing system cannot properly do this,so they have to maintain a parallel system by itself which is labor intensive.He believes this is costing the district more than i t is worth.They only accrue $4 a year at six percent. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 5 of 11 Water Superintendent Brian Hall stated they have to keep track of it monthly,not annually.This accounting has to be done continually. Mr.Milkey suggested doing away with the deposit. Water Superintendent -Brian Hall stated they are proposing doing away with the interest payment. Mr.Durbala Commented they should not do away -with the deposit. Water Superintendent Brian Hall stated they have renters who move in and do not pay their rent..After leaving and not paying their bill for three months,the deposit is all they have to put towards the water that was used. Mr.Dietz stated they are just going to eliminate the interest payment on the deposit. Water Superintendent Brian Hall stated that is correct.They have also been discussing Modifying the no return policy on deposits for commercial accounts. Mr.Milkeyasked what happens to those deposits. Water Superintendent Brian Hall stated when the business sells or its servide is discontinued at the request of the owner,the deposits are returned.- Mr.Milkey asked if the deposit could be applied to their monthly bills. Water Superintendent Brian Hall stated they could.Their proposal is to return the deposit after twelve months of continuous payments.They may want to make a policy for those business that are sold before the twelve months are up.They do not want to do away with the deposits as they are frequently used for unpaid bills. Water Utilities Community Facilities District 'Meeting Minutes of June 4,2002 Page '6 of 11 .Mr.MiThey commented he believed those people who pay their bills in a timely manner are being penalized by having to put up a deposit.It appears to be a free loan to the water company. Water Superintendent Brian Hall stated it costs them more to keep track of the interest than the interest the district earns on the deposits. Mr.Durbala asked if.they could give a flat interest rate that stays the same for the entire year.There would be no accounting other than the initial money put in on the deposit. Mr.Milkey stated they would get $106 instead of $100 at the end of the year. Mr.Durbala stated they would then not have to compute it every month. District Accountant John White stated itwould be an improvement over the current system.He asked what they would do if a customer had a six-month lease and they leave after the six months. Mr.Durbala stated they would not get the deposit back as they did not finish a year. Water Superintendent Brian Hall stated they would get their deposit back. Mr.Durbala stated they would,they would just not get the interest.He commented most of the deposit money is returned. Water Superintendent Brian Hall could not estimate how much of the deposit money is refunded. Mr.Eck commented they were compared to Mesa,Gilbert and Chandler but not to Arizona Water which serves 80% of the community.He would like to see that comparison.He would prefer to see a Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 7 of 11 monthly base for the interest.He talked about how the water fee was originally higher and how it came to be reduced.He approved of going to $9.95. Water Superintendent Brian Hall stated it would be wonderful to do that forever.Arizona Water does not charge a deposit or to have a meter put in. Mr.Eck commented it is hard to go across the street and a higher fee. Water Superintendent Brian Hall stated they have a larger base to build from. Mr.Eck asked how difficult the interest payments are to do in the billing system. Water Superintendent Brian Hall stated he current system has provisions built in for graduate rates. Mr.Eck asked if they would have a manpower shortage changing this over to the different tiers. District Accontant John White stated i t should be okay. .Eck asked if the district has to pay the county for the permits. ,Water Superintendent Brian Hall stated the city waives the fees for right-of-way permit.They are needed anytime someone works in the right-of-way. Mr.Eck asked if we have to pay the costs to the county. Water Superintendent Brian Hall stated that is correct. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 8 of 11 Mr.Eck stated he could see paying it to the county on a repair,but not on a new installation. Water Superintendent Brian Hall stated customers do not get charged for repairs on the system. Mr.Eck,Interim District Manager George Hoffman and Water Superintendent Brian Hall discussed the various fees fees,including development fees,that would be charged to a new homeowner. Mr.Eck commented he does not believe in using door hangers for delinquent accounts.They should not have to go out again once a delinquent notice is sent out other than to turn off the water. Water Superintendent Brian Hall agreed with him,but he would have to check the legality of it since this is a publicly -owned system.There are some customers who will not pay their bill until they receive a door hanger. Mr.Dietz commented he does not believe a $10 or $15 fee will sway them. Water Superintendent Brian Hall stated they are proposing a late fee for those people who just need a little nudge.Some people will not care and they will have to pay for a reestablishment fee. Ms.Urich asked if it has ever been calculated how much it costs for staff to go out there and hang the door hangers. Water Superintendent Brian Hail stated it takes time out of a busy schedule. Ms.Urich commented they cannot be doing something else if they are doing that. Water Superintendent Brian Hall agreed.It is necessary and we need to do it,but he will look into that. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 9 of 11 DISTRICT WATER SUPERINTENDENT REPORT Water Superintendent Brian Hall stated the design of the interconnection between the District and the City of Mesa is not much farther.The survey has been completed,more inquiries have been made on the pump station property, and the 30%submittal of the design should be ready in June.The Royal Palm area water line project is now in the potential- liquidated damages.Letters are going back and forth and they have reasons to extend a little bit.A laboratory lost 7 bacterial samples on 7 different alleys and i t had to be re- tested,so they will allow more time for that.They were about 240 services from finishing as of yesterday.It will not be considered substantially complete until the system is online with everyone receiving water and no leaks:The final clean up may or may not drop liquidated damages.He estimates it will be most of this month before i t is finished and cleaned up. He has information from the real estate company on proposed sites for the new well.He needs ,to sit down with Doug,George,and Ron and talk about the plusses and minuses before i t is brought to the board.The wheeling agreement with Mesa is pending on changes from Bill Farrell,which will be forwarded to the attorneys for Mesa and Arizona Water. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. ADJOURNMENT meeting at 6:53 p.m. )Chairperson Coleman adjourned the ACCEPTED THIS 1ST DAY OF JULY ,2002, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY), CITY OF APACHE JUNCTION, ARIZONA. Water Utilities Community Facilities District Meeting Minutes of June 4,2002 Page 10 of 11 Kathleen Connelly District Clerk SIGNED AND ATTESTED TO THIS 1ST ATTEST: DAY OF JULY Douglaspleman Chairperson WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES CERTIFICATION ,2002. 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 June, 2002.I further certify that the meeting Was .duly .called and held and that a quorum was present.. •..,„ Dated this 10th day of June,2002. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of June 4,2002 . Page 11 of 11