Loading...
HomeMy WebLinkAbout2006-01-17 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER -COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING JANUARY 17.2006 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 January 17,2006,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.Joseph Severs Mr.Kris Sippel Mr.Dave Waldron Staff Present: (Vice Chairperson R.E.Eck,Jr.was absent.) George Hoffman,District Manager Kathleen Connelly,District Clerk Brian Hall,District Operations Manager Kay Bigelow,District Counsel John White,District Finance Manager Ron Grittman,District Engineer Others Present:Assistant City Manager Bryant Powell APPROVAL OF MINUTES OF NOVEMBER 15,2005 ) )Mr.Dietz MOVED THAT THE MINUTES OF NOVEMBER 15.2005,BE APPROVED. Mr.Waldron SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 1 of 9 VOTE:Unanimous. The motion carried. PUBLIC HEARING:RESOLUTION NO.2006-001, APPROVING A FEASIBILITY STUDY FOR THE CONSTRUCTION AND INSTALLATION OF AN ARSENIC TREATMENT SYSTEM )District Counsel Kay Bigelow briefed the board on the item.She stated there is an outstanding bond issue. Water Infrastructure Finance Authority wants to be equally able to enforce their loan agreement or be on parity.They are requiring that an outside party do a feasibility study that shows that the purpose is to install an arsenic treatment system and to refinance some other improvements that the water district has made.I t also needs to show through audited documents that there is enough money to do that.It also allows for compliance with the community facility district statutes that require this type of report to be done before construction on a public infrastructure can take place;the arsenic treatment system is public infrastructure.The first action is a public hearing,then approval of the study,and the third action is a resolution of intention to construct the system.The system is almost up and running at this time. Chairperson Coleman asked if the construction she commented on refers to the next item on the agenda. District Counsel Kay Bigelow stated it does. Chairperson Coleman asked if both public hearings could be at the same time. District Counsel Kay Bigelow stated the public hearing is for the first item only.It must be done before the approval.She presented both items because they are connected. Mr.Dietz asked if there was a cost involved in the feasibility study. Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 2 of 9 District Counsel Kay Bigelow stated the feasibility study was done by Stan-Tec.It could not be done in-house as their bond indenture documents require that a third party do it.She did not know what the cost was and i t has already been completed. District Operations Manager Brian Hall stated the cost was under the limit set:he believed it was $12,000. Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak,he closed the public hearing and reopened the item to board discussion. Mr.Waldron asked if the district was happy with the feasibility study since the board did not get a copy of it. District Operations Manager Brian Hall stated the people requiring i t are happy with i t so he is ecstatic with it.They have been working on this for a long time. Chairperson Coleman closed the discussion with no further comments and called for a motion. Mr.Waldron MOVED THAT RESOLUTION NO.2006-001,A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)APPROVING THE FEASIBILITY STUDY FOR CONSTRUCTION/INSTALLATION OF AN ARSENIC TREATMENT SYSTEM,BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO.2006-002,RESOLUTION OF INTENTION FOR CONSTRUCTION AND INSTALLATION OF AN ARSENIC TREATMENT SYSTEM,IDENTIFICATION OF THE AREAS BENEFITED,THE EXPECTED FINANCING,AND APPROPRIATE SYSTEM OF PROVIDING Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 3 of 9 REVENUES TO OPERATE AND MAINTAIN THE ARSENIC TREATMENT SYSTEM .). )Chairperson Coleman asked i f there'were any questions from the board.There being no questions,he asked the district counsel if she had anything to add. District Counsel Kay Bigelow stated she did not. Chairperson Coleman closed the discussion and called for a motion. Mr.Dietz MOVED THAT RESOLUTION NO. 2006-002.A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA)DECLARING THE BOARD OF DIRECTORS'INTENTION TO CONSTRUCT/INSTALL ARSENIC TREATMENT SYSTEM FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION,ARIZONA),BE APPROVED. Mr.Severs SECONDED THE MOTION. VOTE:Unanimous. The motion carried.. RATIFICATION OF CONTRACT, FOR TEMPORARY WATER SERVICES.AWARDED UNDER EMERGENCY BASIS ON DECEMBER 23,2005 )District Operations Manager Brian Hall briefed the board on the item-.He stated they had a well collapse and the City of Mesa shut -down their Central Arizona. Project plant on January 3, 2006,affecting the district's water resources.They tried several options including purchasing water;from other cities but they were unable to. do that due to the otheriparties'.circumstances.Staff discussed it and the ultimate goal is to keep the water running out of the customer's 'faucets.The only other option was to put together a temporary water:treatment:plant and use some of our Central Arizona Project allotment through that plant.This has been done.The plant is up and running although_ it is not running perfectly with regard:to smoothness of operation.:I t is producing what meets safe drinking water standards'.It may spoil the customers because i t is cold and Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 4 of 9 clear and potentially tastes better than what was previously delivered.I t cost $157,000 to move the equipment in and set i t up.The monthly charge is $96,318 with a minimum of 2 months for the contract. Chairperson Coleman closed the discussion with no further comments and called for a motion. Mr.Waldron MOVED THAT THE CONTRACT FOR TEMPORARY WATER SERVICES AWARDED UNDER EMERGENCY BASIS ON DECEMBER 23,2005, TO U S FILTER TO PROVIDE EQUIPMENT AND SERVICES TO TREAT CENTRAL ARIZONA PROJECT WATER IN THE AMOUNT OF $157,000 FOR SET UP AND REMOVAL PLUS A MONTHLY CHARGE OF $98.318 FOR A MINIMUM OF TWO MONTHS BE RATIFIED;AND THAT RATIFICATION/AUTHORIZATION FOR THE DISTRICT MANAGER OR HIS DESIGNEE BE GIVEN TO SIGN THE CONTRACT. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AGREEMENT TO PURCHASE RECHARGE CREDITS FROM SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO.1 ) )District Counsel Kay Bigelow briefed the board on the item.She stated they have been working the past .several months on this agreement.They have a recharge facility and they will end up with recharge credits that-willte purchased.The papers will be filed . allowing this district to use the credits and get the benefit of them fbr the water system.The agreement gives the district the ability to buy -90% of what they can produce.They are not producing much now but in -the -future it will be important because it means other water providers will not be 'allowed to. purchase it.They wanted to leave 10% available to sell to a golf 'course or some place else.The district will have the opportunity to purchase that 10% if there are no other buyers.There is also a provision that if the district has .a year with a lot of capital expenses that were unplanned,the 90% may be held onto for the next fiscal year.The district must at some time deal with Superstition Mountains Community Facilities District to get the ability to take effluent if they shut the recharge facility down or have some operational problems getting i t running.The district would not want the effluent:going Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 5 of 9 to another entity.The district decided to get the first portion cleared up first and then go back for the straight transfer of effluent if the facility is ever shut down.The price is set at an index with the Central Arizona Project price,which is a good price as there is not much of a market for this. agreement is for. i t is for ten years. option at the end of the ten years. Mr.Waldron asked how long the District Counsel Kay Bigelow stated Mr.Waldron asked if they have an District Counsel Kay Bigelow stated they have the option to continue.They wanted it to be long term so that i t will hopefully help with the assured water designation. Mr.Waldron asked if the price of $105 per acre foot is good for ten years. District Counsel Kay Bigelow stated each year the Central Arizona Project sets a price and this will run along with that index. Chairperson Coleman closed the discussion with no more comments and called for a motion. Mr.Severs MOVED THAT THE AGREEMENT TO PURCHASE RECHARGE CREDITS FROM SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO.1 FOR THE INITIAL PRICE OF $105.00 PER ACRE FOOT (325,851) GALLONS BE APPROVED. Mr.Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 6 of 9 DISTRICT OPERATIONS MANAGER REPORT District Operations Manager Brian Hall stated Well No.5 has been redrilled, cased,gravel -packed,and swabbed to get the worst of the sand out.Today they were setting up for putting the pipe down the hole for the actual test pump.The pump does two things.They surge that pump to complete the cleaning of the well and development of the well.They pull the remaining driller's mud and garbage out of the well that was there from the drilling. Well No.8 has the front block wall up and a set of steel gates are in place. The building slab is in and this Thursday the block will be going up for the building.There had been some debris in that well,and as of this afternoon Webber Pump Group was there with a small cable tool rig to remove the debris. They will finish grading the site next week.The building behind the control panel is new at Well No.6,along with the filter tanks and piping.There are two reaction vessels for when chemicals are inserted with a large tank in the back as a multimedia filter vessel.They are feeding five different chemicals into it to create the treatment that takes place within the building.They will ultimately have a reclaim water tank that will reintroduce that water over the next 8 -hour period.They currently have a couple of spill containment areas with permanent tanks and piping to fill the tanks.They have determined that two more chemicals need to be in permanent tanks so they will make a small modification.They are currently running through the break- in period;they have been making water for approximately one week.The arsenic test kit is showing that the water coming out is less than what is coming in but i t is not very accurate.They will take their first sample and send it to the laboratory tomorrow.They are confident the district is under the 50 parts it currently needs to meet and will be tuning it to make sure i t is under the 10 parts that will be required next week.The temporary treatment plant for Central Arizona Project water has a hose and a submersible pump that has been put in the canal.A generator powers the pump.The pipe and meter go to district property and take the water through the treatment process.The first place the water goes is into a clarifier in a large trailer.They are currently catching some algae on the screens and they have to be washed off.From the clarifier the water is chlorinated and pH adjusted.It then goes through the filter for the final clean up of the water.The district was lucky enough to have the first one out of the factory but the start up was a little difficult as some of the automated system did not work properly.The water then goes into two tanks which give them 42,000 gallons in the holding area.A diesel pump pushes i t into the system.The Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 7 of 9 controls are run by a generator.He commented he would leave the Mesa agreement to the district counsel for the report. DISTRICT MANAGER REPORT District Manager George Hoffman commented Brian Hall is an understated kind of guy.He has been going through some tough stuff with these projects and he has been doing phenomenally.He has a great back up team in Ron and Doug.He wanted to publicly say to Brian that he knows and he appreciates what he had done. DISTRICT TREASURER REPORT District Finance Manager John White stated they would be getting a monthly financial report.With some of the issues the district has been confronting, the courts will not look as favorable as they have in the past.If they have any questions on the reports,he requested they contact him. DISTRICT COUNSEL REPORT District Counsel Kay Bigelow stated the Water Infrastructure Finance Authority attorney called to say all of the loan documentation was in and the district had done everything they had asked them to do.The loan documents should be in front of them for approval at the next meeting.The interconnection agreement with Mesa in taken care of in principle.There were some small drafting issues but in the main the two cities are in agreement and it will work.The Department of Water Resources has to be worked through yet on the agreement,plus some other pieces,but i t looks like the Central Arizona Project treatment portion that Mesa will provide will work out well.They have a meeting with the Central Arizona Project tomorrow about the Ironwood Bridge project and their unreasonable request for the city to build a Cadillac when a nice old Chevy will do.She,Ron Grittman and Pinal County will be attending the meeting to request they be more reasonable.State Land had also made unreasonable requests for the right -of way purchases;she and Ron Grittman have a meeting planned with State Land. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:28 p.m. Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 8 of 9 ACCEPTED THIS 21ST DAY OF FEBRUARY ,2006,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 213T DAY OF FEBRUARY ,2006. Douglas Cifleman Chairperson 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 17th day of January,2006.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 20th day of January,2006. Kathleen Connelly District Clerk /19 Water Utilities Community Facilities District Meeting Minutes of January 17,2006 Page 9 of 9