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HomeMy WebLinkAbout2005-02-01 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING FEBRUARY 1,2005 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 February 1,2005,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.John Insalaco Mr.Kris Sippel Mr.Dave Waldron (Vice Chairperson R.E.Eck and Mr.Brian Milkey were absent.) Staff Present:George Hoffman,District Manager Kathleen Connelly,District Clerk John White,District Finance Manager Doug Dobson,Utility Director Brian Hall,District Operations Manager Others Present:Assistant City Manager Bryant Powell APPROVAL OF MINUTES OF DECEMBER 7.2004 ) )Mr.Dietz MOVED THAT THE MINUTES OF DECEMBER 7,2004,BE APPROVED. Mr.Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARD OF CONTRACT FOR CONSTRUCTION OF APPROXIMATELY 20,000 LINEAL FEET OF 4"WATER MAIN SOUTH ON IRONWOOD FROM THE GUADAIUPE ROAD ALIGNMENT ) Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 1 of 9 )District Operations Manager Brian Hall briefed the board on the item.He stated they opened the bids last week;nine bids were received,ranging from roughly $231,000 to almost $400,000.The engineer's estimate was almost $400,000;the budgeted amount was $465,000.He recommends the low bidder of $230,139.17 from Ca -Tel Incorporated of Phoenix. Their business licenses and references check out,and they seem to be experienced in this type of work.He also recommends anadditional10%for unforeseen changes or contingencies,bringing the total amount for approval to $253,153.17.He would like the motion contingent upon two things:legal counsel approval of the contract;and the agreement being finalized. There was general discussion n how the motion should be worded. Mr.Sippel asked i f the $400,000 bidders were bidding the same thing as the $200,000 bidder. District Operations Manager Brian Hall stated they were,line item per line item.They go through and do a bid tally,listing each item individually.Some items are lump sum,things like the pipe are per foot.They then total their amount. Mr.Insalaco commented i t is a big spread. District Operations Manager Brian Hall stated i t is.There were nine bids and three of them were within 4%of each other.He is confident that i t is a good bid.In his experience,some of those people are really looking to do some work because they have a slot in their schedule; others are thinking they are busy,but i f there are only a few bids and they get lucky,they could make a lot of money on the job.That is why he believes you see a spread like that.The bids are attached to the memo. Mr.Dietz commented that Atlantis Construction that bid $400,000 is charging a couple dollars a mile. District Operations Manager Brian Hall stated he does not know their motivation,but he can assume that they have plenty of work. Chairperson Coleman closed the discussion with no further comments and called for a motion. Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 2 of 9 Mr.Waldron MOVED THAT THE AWARD OF CONTRACT FOR CONSTRUCTION OF IRONWOOD SOUTH WATER MAIN, CONSTRUCTING APPROXIMATELY 20,000 LINEAL FEET OF 4"WATER MAIN LINE SOUTH ON IRONWOOD FROM THE GUADALUPE ROAD ALIGNMENT,BE AWARDED TO CA -TEL INCORPORATED IN AN AMOUNT NOT TO EXCEED $253,153.17 BE APPROVED,AND THAT AUTHORIZATION BE GIVEN FOR THE BOARD CHAIRMAN TO SIGN THE CONTRACT SUBJECT TO LEGAL REVIEW AND CONTRACT APPROVAL BY THE DISTRICT'S LEGAL COUNSEL,AND CONTINGENT UPON THE POTENTIAL CUSTOMER AGREEMENT. Mr.Dietz SECONDED THE MOTION. District Clerk Kathleen Connelly commented that amount includes the 10%contingency for unforeseen change orders. The board consensus was that is correct. VOTE:Unanimous. The motion carried. DISTRICT OPERATIONS MANAGER REPORT District Operations Manager.Brian Haj I stated Mr.Waldron had received conservation information from the City of Tempe on two of the programs that they have.One is a rebate of 50%,or up to $75,for two toilets to be retrofitted from the 3.5 or more gallons per flush to the new 1.6 gallons per flush.They also looked into retrofit plumbing kits that they provide for their customers.A current water customer may get up to 2 of those kits.There are several places to get these types of conservation materials,and the .cost is roughly the same from a number of suppliers.The district has approximately 4,000 services,but most of those are master metered.Mobile home communities have about 6,880 units when they are full.There are more than 10,000 household units that may be interested in this program.Fifteen hundred kits at $4.49 each would be $6,735 that would have to come out of the 'district budget.He believes that is where the first price break was on the kits.He asked Tempe how they budget for that,and Tempe advised that everything that they send out to their customers they stipulate as while supplies last or as long as the budget will withstand it.Once the funds are gone,applicants are held over to the next year.He suggested they start with 1,500 kits.Tempe projects they save 8,000 gallons a year per kit,which means 12,000,000 gallons or 2%of the district's annual water production could be saved. Tempe staff advised the district could figure no 250 customers coming in for the toilet rebate the first year and 100 to 150 Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 3 of 9 each year after that.The first year investment for the district on 250 toilets would be $18,750.The district has different demographics than others.Families are starting to come in,but there are a lot of winter visitors.Figuring one to two people per residence,they estimate 6 flushes per day and 1.9 gallons saved per flush.The potential annual water savings is only a little over a million gallons,or two -tenths of a percent.The district would be looking at almost a $19,000 investment for a two -tenths savings versus a $6,735 investment for retrofitting that has the potential to,i f the kits are picked up and installed,save more water for less money and still have an opportunity to put something out in front of the people.There are some other kits that are less money,but they have conservation brochures and the toilet tank displacement bag and measuring items.They bring awareness to conservation but they do not actually save water as doing things like changing the shower heads,putting the aerators on the sinks,or the things that the first kit would do.He asked Mr.Waldron i f that was the kind of information he had been looking for. Mr.Waldron stated i t was.He had wanted to see what the savings would be.He does not think i t would take long to install. District Operations Manager Brian Hall stated the kits are easy to install. Mr.Sippel asked how much the savings would equate to in dollars. District Operations Manager Brian Hall tated they would probably lose $38,000 to $40,000 in revenue. Mr.Insalaco added plus the $18,000. District Operations Manager Brian Hall stated the kits would be about $6,800.I f the program is successful at conserving water, they would probably want to continue i t over a few years. Chairperson Coleman asked what comes in the kit. District Operations Manager Brian Halls stated i t costs $4.49 each for 1,500 and they include a shower head,a couple of aerators.They will have lost revenue and the cost of the kits. This assumes that people take home these kits and completely utilize them.He also does not have any conservation numbers on that;he is going by Tempe figures. Mr.Dietz stated i t is a hit on the money that would be paid,but the 2%in water savings is a nice chunk,especially i f coupled with the water loss program. Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 4 of 9 District Operations Manager Brian Hall commented three years ago they talked about a graduated rate,but i t concerned the board at that time because the rates were already so high.I t would have been a tough sell.The discussion at that time was i f the district was ever financially stable enough,they could lower the rate for the first 10,000 gallons by about 20 cents. Mr.Dietz commented the people that use more would pay more. District Operations Manager Brian Hall stated they could at least start it.The way to sell i t is that those that already conserve will actually save a couple of dollars a month.He has started developing a spreadsheet so that he can go in and change the rates for different figures,and have i t do a comparison of the current water bill versus the future water bill.He would like to have that information ready before they get to the budget process.He is looking for a break point where the district does not get too substantially hurt in revenue over a year's time.He would like to encourage customers already doing their part for conservation and encourage others that may be at the break point that by a little conservation could trim i t back a little.They previously gave out a toilet float adjuster to get something out to the customers on conservation so that they would start thinking about it.The annual report appears to show that the water usage was not increased and i t may have decreased already. They also provided xeriscape handouts to customers and stickers to put on their mirrors.-These reminders help those that are concerned. Mr.Dietz commented he believes they are taking the right steps. Mr.Insalaco commented i t is great,but he wondered how many people would get the kits and throw them on a shelf in the garage and not use them.The district would think i t was saving.He realizes there is no way to control that. District Operations Manager Brian Hall commented Mr.Insalaco's guess would be as good as his.He knows the board is looking in the same direction,but they need to pick the speed of forward advancement.He commented on a ruler that was in their packets; i t will tell you on the back,over a 3 month period of time,that the whole that is in i t could cause a loss of 74,000,and that would be $300 on someone's water bill.I t has helped show that even a small pinhole could cost a lot of money over a 3 month period.The rulers cost sixty-nine cents apiece for a thousand and thirty-nine cents apiece for twenty thousand.There are a lot of little things they can do that are helpful to customers to get them to understand what they can do to make a difference in water savings. Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 5 of 9 Mr.Dietz commented he assumes that i f they made those kits available on a first come first serve basis that those making theefforttocomedowntotheofficetopicki t up would more than likely use it. Mr.Sippel asked i f there would be an assistance program where someone from staff would go down there. District Operations Manager Brian Hall stated he does not think they want to get started into something like that. Mr.Insalaco stated that could rget costly. District Operations Manager Brian Hall stated there is also the possibility of their putting a wrench on a shower head and as i t is turned i t starts to pull •the plumbing out of the wall with water spraying everywhere.They are not plumbers. Mr.Dietz commented the district would then have built them a new bathroom. District Operations Manager Brian Hall commented that or have paid for an expensive clean up job and hire a plumber to finish it. Mr.Waldron commented the $6,000 would be spread out over 6 or 7 years when they distribute only 250 the first year and less later. District Operations Manager Brian Hall stated the $6,000 is for the toilets.The other is $18,750. Mr.Waldron commented he does not think they will have 1,500 requests the first year.The cost will be spread out.Those who opt not to do i t will pay the price through their water bill. The district is taking the lead in promoting conservation. District Operations Manager Brian Hall commented he believes they will have to take a multi -faceted approach for the next few years.There will have to be more public education and education in the schools,and perhaps graduated rates.The governor has made drought and conservation a priority for the upcoming legislative session.They may see actual rules stating what they must do as a water purveyor towards conservation.He added this is the information he has so far,and they can expand or trim this as the board desires.I f something is picked that is not too expensive,they can probably fund i t out of the existing budget.A major project would need to be included in next year's budget. Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 6 of 9 There was general discussion by the board and the district operations manager repeating the items available and what could be done this year.The consensus was to start with the kit. District Operations Manager Brian Hall asked i f they would like to see more money budgeted for other programs in next year's budget. The consensus was to see how the kits go first. District Operations Manager Brian Hall stated he would order them in the next week or so and put a notice on the bottom of the bills that they are available to the customers.They will limit them to 2 per household. There was general discussion on whether,there should be a charge for additional kits requested over two per household.The consensus was to charge the cost of the kit. District Operations Manager Brian Hall stated he has not new information on the interconnect agreement with Mesa.He received a copy today of the proposal from the design/build team on the arsenic treatment for Well No.6.Their estimate,with contingencies,is about $798,000,down from the original $1.2 million estimate.They budgeted $776,000;i f the contingency is not used,they are within $51 of the budgeted amount. 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.I t 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.I t 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 Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 7 of 9 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 i f 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 land and found $575,000 of environmental clean up to be done on an $800,000 property.I t is well worthwhile to make sure the site is environmentally sound. They will come back to the board i f 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 i f 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.I t 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 i t 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.m. ACCEPTED THIS 5TH DAY OF APRIL ,2005, 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 February 1,2005 Page 8 of 9 SIGNED AND ATTESTED TO THIS 5TH DAY OF APRIL 2005. Douglas /oleman Chairper fson ATTEST: Kathleen Connelly District Clerk WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES 'CERTIFICATION I hereby certify that the fOregoing Minutes,are a true and correct copy of the minutes of th_e-regul.a.T Meeting of the Water Utilities Community Facilities District of the City of Apache Junction,Arizona,held on the 1st day of February,2005.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 18th day of February,2005. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 1,2005 Page 9 of 9