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HomeMy WebLinkAbout2005-08-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING AUGUST 16,2005 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 August 16,2005,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 ViCe Chairperson R.E.Eck,Jr. Mr.Rick Dietz Mr.John Insalaco Mr.Joseph Severs Mr.Kris Sippel Mr.Dave Waldron Staff Present Kathleen Connelly,District Clerk John White,District Finance Manager Kay Bigelow,Di -strict Counsel Doug Dobson,Utility- Director Brian Hall,District Water Superintendent Keith Lewis,District Treasurer Hazel Randall,District Administrative Assistant -Others Present:Bryant Powell,Assistant City Manager APPROVAL OF MINUTES OF JULY 5,2005 )Mr.Dietz MOVED THAT THE MINUTES OF JULY 5,2005,BE APPROVED. Mr.Sippel SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 1 of 10 VOTE:Unanimous. The motion carried. CONSIDERATION OF REQUEST TO TRANSFER APPROPRIATION IN THE AMOUNT OF $25,000 IN FY 2004-05 BUDGET FROM LINE EXTENSION TO SPECIAL CONTRACTUAL SERVICES )District Finance Manager John White briefed the board on the item.He stated they did this last year.They are going over $3,000 on the Central Arizona Project line item as estimated, but there still could be some adjustments.He is requesting they move $25,000 in appropriations from the unused capital to the Central Arizona Project line item. Chairperson Coleman opened the item to board discussion.There being no discussion,he called for a motion. Mr.Sippel MOVED THAT THE REQUEST TO TRANSFER APPROPRIATION IN THE AMOUNT OF $25,000 IN FY 2004-05 BUDGET FROM LINE 008-08181-519-696 LINE EXTENSION TO LINE 008-08181-514-656 SPECIAL CONTRACTUAL SERVICES,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2005-2006 )District Finance Manager John White briefed the board on the item.He stated he gave them updated schedules that were substantially the same as what was presented last month.A proposed budget column and the most recent revenue estimates have been completed in the unaudited column.The revenues were down a little over what had been projected.After discussions with Mr.Hoffman and Mr.Hall,some adjustments were made to the manager's budget in order to balance.Those adjustments are outlined in the cover memo. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 2 of 10 Chairperson Coleman opened the item to board discussion.There were no comments and he moved on to the next item. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2005- 2006 )Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and opened the item to board discussion.There being no discussion,he moved on to the next item. RESOLUTION NO.2005-003:FINAL BUDGET ADOPTION FOR FY 2005-06 Chairperson Coleman called for a motion. Mr.Waldron MOVED THAT RESOLUTION NO.2005-003,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)FULLY ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA),FOR FISCAL YEAR BEGINNING JULY 1. 2005,AND ENDING JUNE 30,2006;DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA),FOR FISCAL YEAR 2005-2006,BE APPROVED. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO.2005-004:RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR THE FISCAL YEAR INCLUDING NEW RATES FOR SERVICE AND VARIOUS FEES )Chairperson Coleman opened the item to board discussion.There being no discussion,he called for a motion. Mr.Insalaco MOVED THAT RESOLUTION NO.2005-004,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 3 of 10 COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR THE FISCAL YEAR INCLUDING NEW RATES FOR SERVICE METER INSTALLATION FEES;FIRE HYDRANT METER INSTALLATION FEES;GENERAL SERVICE CHARGES;MISCELLANEOUS PENALTIES;AND COPYING CHARGES;AND ESTABLISHING AN EFFECTIVE DATE,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO.2005-0002:ADOPTING THE FY 2005-2006 CLASSIFICATION PLAN AND COMPENSATION PLAN AND DECLARING SUCH PLANS PUBLIC RECORD;DECLARING AN EMERGENCY ) )District Finance Manager John White briefed the board on the item.He stated this plan parallels the plan adopted by the city. District Clerk Kathleen Connelly stated i t formalizes the pay plan that was put into place for city employees. Chairperson Coleman opened the item to board discussion.There being no discussion,he called for a motion. Mr.Waldron MOVED THAT RESOLUTION NO.2005-002,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)DECLARING AS A PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN FOR FISCAL YEAR 2005-2006"AND "THE COMPENSATION PLAN FOR FISCAL YEAR 200 -2006";AND DECLARING AN EMERGENCY,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 4 of 10 AWARD OF CONTRACT TO CONSTRUCT CONTROL BUILDING,CONTROLS,PUMP,PIPING,BACK UP POWER,BLOCK WALL AND LANDSCAPING FOR WELL NO.8 )District Water Superintendent Brian Hall briefed the board on the item.He stated they opened bids for this project on July 26.The well was drilled about two years ago and was completed about one -and -a -half years ago.There has been some delay in the planning process.The two bids were for $588,917 and the other for $582,744. Both of the bids are substantially over the $365,000 budgeted,which was based on an engineer's estimate with some adjustments.He polled contractors in this part of the state and they are not hungry,as evidenced by the bids. They can reject the bids and re -bid later,but recent city history has proven that it could cost them more money to do so until the climate changes.As long as they are in a growth pattern,it will be hard to forecast.Also,they need to take Well No.5 out of service to redo it.Additional water is imperative.He had talked to legal counsel to discuss backing some parts of the project out to save some money and do them with in-house crews.After looking at state law,there is questionable justification in doing that to save money with regard to bidding and procurement laws.Concrete block is at a premium;there is no stockpiling.The,original specifications called for three different -colored blocks to build the wall around the well.People in the area have commented that every block wall in that area is tagged with local art.In addition,in order to get colored block now,they may have to shut a line down and pay someone to do them.They may make some changes that will -save a few thousand dollars.They would also like to talk to the low bidder about some control changes;our maintenance electrician had some suggestions that would save a little money up front and maintenance headaches in the future.He recommended entering into a contract with the low bidder. He asked for an additional 5%in case something strange happens.He believes it will come in lower than the original bid with the changes they are making. If it goes over the additional 5%,he will stop things and come back to the board. Mr.Dietz asked if they had the extra $200.000 plus at hand. District Water Superintendent Brian Hall stated it will come out of some of the other capital projects. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 5 of 10 Mr.Severs commented that both bids exceeded the budgeted $365,000 based on an engineer's estimate.He asked who was doing the estimates. District Water Superintendent Brian Hall stated the estimate was done by Stantec,a very reputable firm.However, no one can see into the future to estimate how busy contractors will be.He had another contractor who asked a lot of questions about the job and never bid the job once he found out there were other bidders.He believes that contractor was going to put an even higher bid in,hoping to get the job if he was the only bidder.With the growth in the valley,he does not believe contractors are willing to bid tight because they have plenty of work to do. District Clerk Kathleen Connelly stated the well number needs to be changed to 8 in the motion. Chairperson Coleman closed the discussion and called for a motion. Mr.Dietz MOVED AHT THE AWARD OF BID FOR CONSTRUCTION OF EQUIPMENT FOR WELL NO.8 TO CONSTRUCT CONTROL BUILDING, CONTROLS,PUMP,PIPING,BACK UP POWER,BLOCK WALL AND LANDSCAPING FOR WELL NO. 8 BE AWARDED TO FELIX CONSTRUCTION IN THE AMOUNT OF $582,744 WITH AN ADDITIONAL 5%IN THE AMOUNT OF $29,137 IN THE EVENT OF UNFORESEEN CHANGES FOR A TOTAL AMOUNT OF $611,881;AND AUTHORZING THE BOARD CHAIRMAN TO SIGN THE AGREEMENT SUBJECT TO LEGAL REVIEW AND APPROVAL AS TO FORM BY DISTRICT COUNSEL, BE APPROVED. Mr.Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT WATER SUPERINTENDENT REPORT District Water Superintendent Brian Hall introduced the new legal counsel,Kay Bigelow. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 6 of 10 District Counsel Kay Bigelow stated she has done municipal law for some time. She went into private practice last year and became a partner at Gammage & Burnham last year.She had been the city attorney for Casa Grande for 9 years.She has experience with public entities and community facilities districts in particular.She is thrilled to be here and she hopes they feel responsiveness from her end.She added the district staff is great. District Water Superintendent Brian Hall stated i t has been great working with her.She has been very responsive with projects this past month. Mr.Dietz asked if she was familiar with the past legal counsel and how things got shuffled around a bit. District Water Superintendent Brian Hall stated he believes she has experienced some of the same things they have while reviewing past files. Mr.Dietz commented he was glad she was on board and hopes she will give them the attention that they need. District Water Superintendent Brian Hall stated the Ironwood South water main is all but complete.The contractor needs to provide release letters from the land lessees that allow them to stage rock,equipment and pipe on the properties.There is one culvert that needs some adjustment.They have turned in red line changes that they will create the as built drawings from. The motocross track has been receiving water through their service since July 3 with no complaints. Vice Chairperson Eck asked how that item affects the Department of Water Resources as far as allotment. District Water Superintendent Brian Hall stated i t does not change the allotment,but i t allows them to move forward with State Land to secure a property in the area for a well. Vice Chairperson Eck stated he agrees with it.He wondered whether they looked at the motocross track as a commercial property. District Water Superintendent Brian Hall stated i t is designated as commercial.Our allotment is set for Central Arizona Project and the existing groundwater allotment is set. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 7 of 10 Vice Chairperson Eck asked if the motocross track would extensively go after our storage credits. District Water Superintendent Brian Hall stated they missed the read cycle in July in zone 3.They did not have a full month read yet so he does not know how much usage they will have. Vice Chairperson Eck commented he might ask that of the Department of Water Resources when he deals with them again in the future.He is curious how they would look at the allotment regarding the motocross track. District Water Superintendent Brian Hall commented he would like to get together with him as he does not feel he is following him regarding the allotment.They have reviewed the preliminary design report for the arsenic treatment for Well No.6 and they have made a couple of minor changes.That project is moving forward on schedule.The final design is near completion and will go to the Arizona Department of Environmental Quality for approval and the equipment for the arsenic treatment plant has been ordered.Prior to this meeting,Ms.Bigelow shared some comments with them regarding the Mesa interconnect agreement.She has met with the City of Mesa attorney and Doug Dunham of the Office of Assured Water Supply from the Department of Water Resources and they have come up some things that the Department of Water Resources would like to see in lieu of a 100 year agreement.They have tentatively settled on a 10 year agreement with a provision that requires at least a 2 year notice before the agreement can be terminated.It has an annual automatic renewal with the exception of the 2 year notice.The Department of Water Resources also wanted to see a capital improvement plan that shows our intention to build a water treatment plant if,nearing the end of the 10 years,the City of Mesa has chosen not to build a regional plant, not to partner with us in a regional plant,or that i t is so far in the future they cannot commit to it.They polished up the capital improvement plan,put some detail in there including possible funding sources,and have given that to Ms.Bigelow to take back to the Department of Water Resources.The three groups have identified specific things that need to be in the agreement to make it happen.He believes if the plan is what they are looking for and they agree in principal,they will move forward with the land purchase as the agreement is finalized. Mr.Dietz asked what kind of time frame are they looking at. Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 8 of 10 District Water Superintendent Brian Hall stated he is still an optimist,but he would hope they have a substantial agreement by the end of September.If it looks like they are on track at that point,they will work on some other aspects such as the land purchase.The land purchase should not take long i f Lennar Homes is still willing to sell.He estimates the agreement should be back before both Mesa and this board by November or December.The construction plan should be completed 90% by that time.They could go out to bid in January,open bids in February and start construction in March or April. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. ADJOURNMENT meeting at 6:30 p.m. )Chairperson Coleman adjourned the ACCEPTED THIS 18TH DAY OF OCTOBER ,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 24TH DAY OF OCTOBER 2005. Douglas Clleman Chairperson Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 9 of 10 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 the regular meeting of the Water Utilities Community Facilities District of. the City of Apache Junction,Arizona,held on the 16th day of August,2005.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19th day of August,2005. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 16,2005 Page 10 of 10