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HomeMy WebLinkAbout2004-12-07 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING DECEMBER 7,2004 The regular meeting of the District Board of the Water Utilities Community Facilities District (Apache Junction Wat Company.)City of Apache Junction,Arizona,Was held on December 7,g004,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. ROLL CALL Board Members Present:Chairperson Douglas Coleman Vice Chairperson R.E.Eck Mr.Rick Dietz Mr.John Insalaco Mr.Brian Milkey Mr.Kris Sippel Mr.Dave Waldron Staff Present:George Hoffman,District Manager Kathleen Connelly,District Clerk Keith Lewis,District Treasurer John White,District Finance Manager Doug Dobson,Utility Director Brian Hall,District Operations Manager Bill Farrell,District Counsel Others Present:Assistant City Manager Bryant Powell APPROVAL OF MINUTES OF AUGUST 17,2004; SEPTEMBER 21,2004;AND OCTOBER 19,2004 ) )Mr.Dietz MOVED THAT THE MINUTES OF AUGUST 17,2004:SEPTEMBER 21,2004:AND OCTOBER 19,2004,BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 1 of 10 Mr.Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROFESSIONAL SERVICES AGREEMENT WITH SOUTHWEST GROUNDWATER CONSULTANTS,INC. FOR DESIGN AND CONSTRUCTION MANAGEMENT TO RE -DRILL WELL NO.5 )District Operations Manager Brian Hall briefed the board on the item.He stated they looked at the well last year with a television camera when the pump was redone.They found the casing has completely deteriorated in some areas.The well may cave in. They have budgeted to re -drill the well this budget year.This agreement calls for the plans and specifications to be put together that are needed to go to bid for re -drilling the well. Mr.Dietz .asked if the 'cost includes everything. District Operations Manager Brian Hall stated this is just the engineering portion_ of it."It is also construction management.They wi_11:rdo-the sampling and'testihg -:to make sure the well is developed correctly.• .-Mr.Dietz asked about the cost of re -casing,re -setting and re -doing the well. ,District Operations Manager Brian Hall stated they would have to wait and see what the bids:comeback like.'He estimated it would be $325.000 to $330,000.This is the low arsenic well and they want to keep i t that way. Vice Chairperson Eck asked if they were trying to get more gallons per minute out of it. District Operations Manager Brian Hall stated they are trying to supersede i t caving in on them and losing the pump.There are some holes below the water line as big as one's head and as they go deeper the casings are almost completely deteriorated. Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 2 of 10 Chairperson Coleman closed the discussion with no further comments and called for a motion. Vice Chairperson Eck MOVED THAT THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT AND SOUTHWEST GROUNDWAM CONSULTANTS„INC.FOR DESIGN AND CONSTRUCTION MANAGEMENT TO RE -DRILL WELL NO.5 IN THE BASE AMOUNT_ OF $35,100.00 PLUS 10%CONTINGENCY OR $3,510.00 FOR UNFORESEEN CONTINGENCIES FOR A TOTAL AMOUNT NOT TO EXCEED $38,610.00 BE APPROVED AND THAT THE BOARD CHAIR BE AUTHORIZED TO SIGN THE AGREEMENT SUBJECT TO FINAL APPROVAL AS TO FORM BY DISTRICT COUNSEL. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. ADOPTION OF NEW POLICIES REGARDING CONTRACT AND PURCHASING PROCEDURES IDENTICAL TO THOSE ADOPTED UNDER CITY OF APACHE JUNCTION ORDINANCE NO.1219 )District Operations Manager Brian Hall briefed the board on the item.He stated the city council passed Ordinance No.1219 on October 19,2004.As the district is managed by the city,the district would like to be brought into compliance policy -wise with the city.It makes it easier to keep track of things and i t is more convenient for the district. Chairperson Coleman opened the item to board discussion.There being no discussion,he called for a motion. Mr.Waldron MOVED THAT WE ADOPT NEW POLICIES REGARDING CONTRACT PURCHASING PROCEDURES IDENTICAL TO THOSE ADOPTED BY THE APACHE JUNCTION CITY COUNCIL UNDER ORDINANCE NO.1219 ON OCTOBER 19, 2004,AND THAT THESE CHANGES BE EFFECTIVE IMMEDIATELY. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 3 of 10 The motion carried. INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF MESA FOR TREATMENT OF THE DISTRICT'S CAP ALLOCATION AND POSSIBLE PURCHASE OF CAPACITY IN A FUTURE WATER TREATMENT PLANT )District Counsel Bill Farrell briefed the board on the item.He stated he was unable to get a clean copy of the agreement for the board this evening.They have not had the opportunity to review in detail:the district manager has reviewed i t in detail.He has found two typographical errors and one correction.He is not asking them to approve it this evening,but to take the time to read the agreement later.He is hoping that the Department of Water Resources will look with favor on paragraph number 19 on page 8 which is the sum and substance of what they have been attempting to do with the City of Mesa:to enter into an option with them during the next 10 years to purchase capacity for all of our CAP water to be treated by an ownership position of either an expansion of an existing plant or the creation of a new plant.They could then permanently count the entire 3,000 acre feet of water for purposes of proving the 100 year water supply to applicants to the city for subdivisions. The managers and directors of both cities' are in full accocd.He believes the Mesa City Council will approve the agreement.If the board feels this needs to be adopted prior to January 2005,they can always call an emergency meeting.He feels the agreement will meet the Department of Water Resources goals.He and Brian will have a personal meeting with the director and they will go forward upon his approval.It meets the current treatment abilities. If this agreement is executed,the district will no longer be a party to the three-way Arizona Water agreement that the district currently has. Vice Chairperson Eck asked how the allocation is different between the wheeling agreement with Arizona Water and direct tie-in with the City of Mesa. District Counsel Bill Farrell stated there is a three prong test for approval per the Department of Water Resources.One of them is permanent treatment ability.The fact that they purchase and own Central Arizona Project water by itself does not qualify for using it on the table that they balance users against water suppliers.There has to be permanency to the ability to treat.The temporary treatment agreement was for 3 years.The director first suggested the agreement with Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 4 of 10 Mesa be for 100 years;that was greeted with deaf ears by both .parties involved-.The alternative he gave with conditional -approval in an earlier letter was for an agreement stating the district would own treatment capacity within the next 10 years,or build a plant. Vice Chairperson Eck cbmthented they Would not be able to do the direct tie-in until they commit. .stated that is correct. District Cbunsel Bill Farrell Vice,Chairpersonjck .commented the direct tie-in and the wheeling do not matter any waY. District Counsel Bill Farrell stated the wheeling will result in a reduction in cost to the district,about a twelve to eighteen month project before the land is acquired. Vice Chairperson Eck commented that would be the direct tie-in. District Counsel Bill Farrell stated that is correct.They are hoping this agreement will immediately allow the district to place the 3,000 acre feet on the wall at Department of Water Resources so that as subdivisions are approved in the city they can get the 100 year assured water supply.The short term benefit is the wheeling station;the long term is reduced cost. There was general discussion to continue this item to the first meeting in January. Chairperson Coleman closed the discussion with no further comments and moved on to the next item. DISTRICT OPERATIONS MANAGER REPORT District Operations Manager Brian Hall stated they will be pushing hard to get an answer from the Department of Water Resources before i t is approved so that changes do not have to be made later and then have to be reapproved. They need to recognize that this is part of their assured water supply.He talked to Pam Nagle of Department of Water Resources on Monday,the public Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 5 of 10 comment period for the application for modification of their designation as an assured water supplier expired last Friday.There were no negative comments.A draft of the new designation was put together yesterday and sent to the director of assured water supply.Once he has made his comments or changes in the document,it will go to their legal department.The district has met the criteria and done everything that needs to be done.He stated the Gila River adjudication for water will give some.cities additional water. The district will not receive additional water.'There.may be some ..• opportunity to lease or purchase water rights from some of the excess available through some of the Indian communities.The district has had to fill out forms over the last 3 to 4 years to solidify the district's claim on groundwater being pumped from existing wells.Well 5. has been grandfathered and the paperwork has been filled out on Well 6.Well 8 has had the appropriate paperwork filled out.Last week he Teceiyed a notice of the district's opportunity to get the docket sheets from the court.He is assuming Mr.Farrell will look into the legal side of how i t affects the district in the future. Chairperson Coleman commented he thinks they would like to have a discussion to see what could be bought or leased.He sees i t as a huge stumbling block to some of the things they want to accomplish. District Operations Manager Brian Hall stated they have several things in the future so far as water resources that they are working on.He commented they had a pre -submittal meeting on the arsenic treatment of Well No.6 with the design/build teams who are interested in providing proposals.Nineteen representatives attended.They have been asked to provide a coagulation filtration style of treatment.The proposals are due December 15,2004. They will, evaluate them and then have some interviews.He stated the two smaller storage tanks at 16th Avenue and Buena Vista have been repainted and look good.They got a decent price on them.He commented the water main extension from Ironwood south has been resubmitted to the Arizona Department of Environmental Quality for the fourth or fifth time.They have a reviewer who is very picky.They have not heard back from them in a week so they are hoping they have everything needed to complete the review for the certificate of approval to construct the water line. Vice Chairperson Eck asked who the reviewer is. District Operations Manager Brian Hall stated he could not remember her name at this time.He stated StanTec gave them copies of 952 plans and Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 6 of 10 specifications for the equipping of Well No.8.The project will erect a building,a block wall,and put in a pipe connection to Southern Avenue. Once he completes his review it will go back to StanTec.They have already applied for approval of those plans with the Arizona Department of Environmental Quality. ' Mr.Dietz asked when they might be getting some water from that. District Operations Manager Brian Hall stated he had hoped they would have been getting water last July.He hopes they will be getting water by March or April,but it might be more realistic to say June.If they get some in May,he will feel good.He commented he and Mr.Hoffman met with Judd Williams of Arizona Water on the conservation and drought plan.They talked about the possibility of having a city-wide drought plan to help with conservation efforts.Arizona Water Company is regulated by the Arizona Corporation Commission.They have been required to provide a curtailment tariff,or drought plan,to the commission.They modified the draft plan that was handed out to the board previously to more, closely resemble that tariff.They are hoping they will get support:from Arizona Water Company so that both of them can come to the city council and say that they support i t and it will help them educate the people and still cover their bases if there should ever be a water shortage.He hopeS to bring that back to the board in January.He commented they have talked about .8 new Togo for -the water district.Matt McNulty,multi -media producer from the city,helped to develop a logo given to them with sample letterhead.They could have i t in varying sizes for shirts,trucks,and letterhead. Mr.Dietz stated he liked it. Vice Chairperson Eck commented i t looks professional. District Operations Manager Brian Hall stated he did a wonderful job.The cactus ties them in with the city. Vice Chairperson Eck commented on the circle. District Operations Manager Brian Hall stated the circle was used because they needed something quick and temporary. Mr.Dietz commented i t is like these temporary buildings of 25 years ago. Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 7 of 10 District Operations Manager Brian Hall stated that is sometimes how life is. He stated if there are no objections they will start using this as the logo. The board had no objections District Operations Manager Brian Hall stated his report was concluded. District Manager George:-Hoffm6n commented he would like his name removed from the letterhead.He believes the board members names should be on there i f anyone's names are on it. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT District Counsel Bill Farrell stated one of the components of the treatment facility and transfer is the acquisition of some real property in the City of Mesa.It has been on hold for some time.He has researched the property to make sure i t could be removed from some CC&Rs that are applicable to the property in Mesa.They want to be able to acquire the property without being members of the homeowners association.It is possible to do.He would like to contact the current owner,indicate to him that the district would like to enter into an escrow for the acquisition of the property with a January 31 or February 15 closing date.When the board and the City of Mesa have approved the intergovernmental agreement,and the department has approved their closing immediately,plans would be prepared and brought to the board for consideration for construction in the first quarter of next year.He will come back to them with the price.He assumes i t has not changed.The board has already approved the parcel.He asked if they had done a phase one environmental on the site. District Operations Manager Brian Hall stated they had. District Counsel Bill Farrell stated that is becoming increasingly more important.He had another client recently try to purchase 16 acres of vacant Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 8 of 10 land and found $575.000 of environmental clean up to be done on an $800,000 property.It is well worthwhile to make sure the site is environmentally sound.They will come back to the board if the owner has had second thoughts:they have the power of eminent domain.The location is unique to the district and a good deal of groundwork has been done.Unreasonable terms or conditions on the sale could cause the board to discuss to exercise the power of eminent domain.They will not commit the expenditure of funds until the agreement is in place. Mr.Dietz asked if they would have to go through the planning process with the City of Mesa. District Counsel Bill Farrell stated they discussed the issues with Mr. Cahoy.It is the legal position of your district counsel that the Water Utilities Community Facilities District is a Title 48 political subdivision and possesses the power of eminent domain and it does not need either a zoning clearance or a building permit from Mesa.The manager has asked him to cooperate with plan review within reasonable bounds.He does not believe the City of Mesa could refuse them to go forward.They intend to cooperate with the requirements of the City of Mesa. Vice Chairperson Eck commented he hopes they will only be interested in some buffer and design review. District Counsel Bill Farrell stated they are appreciative of what the City of Mesa has done in the long run:they do not want to offend anyone.He sent their attorney a letter on these issues and has not had a response back from her. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:32 p. ACCEPTED THIS 1ST/DAY OF FEBRUARY ,2005,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 1ST DAY OF FEBRUARY 2005. Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 9 of 10 • ATTEST: Kathleen ConnellyConnelly District -Clerk • Douglas Cleman 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 .C,-Ltyof..Apache JUnction,Arizona,held on the 7th day of December,2004.I further certify that the Meeting was duly called and held and that a quorum was present. Dated this 17th day of December,2004. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of December 7,2004 Page 10 of 10