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HomeMy WebLinkAbout2006-03-21 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION,ARIZONA REGULAR MEETING MARCH 21,2006 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 March 21,2006,at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Vice Chairperson Eck called the meeting to order at 6:03 p.m. ROLL CALL Board Members Present:Vice Chairperson R.E.Eck,Jr. Mr.Rick Dietz Mr.John Insalaco Mr.Joseph Severs Mr.Kris Sippel Mr.Dave Waldron Staff Present: (Chairperson Coleman was out-of-town.) George Hoffman,District Manager Kathleen Connelly,District Clerk Brian Hall,District Operations Manager John White,District Finance Manager Doug Dobson,District Utility Director Others Present:Assistant City Manager Bryant Powell APPROVAL OF MINUTES OF FEBRUARY 21,2006 ) )Mr.Dietz MOVED THAT THE MINUTES OF FEBRUARY 21,2006,BE APPROVED. Mr.Sippel SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 1 of 8 VOTE:Unanimous. The motion carried. PRESENTATION OF FINAL REPORT FOR SYSTEM WATER LOSS BY HDR ENGINEERING )District Operations Manager Brian Hall briefed the board on the item.He stated the engineering firm has been working on a system water loss.Some things were done independently and some were done in house.They did some changes on some header piping that made the production meters more accurate.In the same year they made those improvements,they found an additional discrepancy between what was leaving the tank on 16th Avenue and what was being sold.They cannot do this once a year:it will have to be done every 6 to 8 months until they get the handle on the big meters.It appears they get on track with one set of meters and lose track on another set.I t has been suggested to create a position that would be a combination of a crossconnection controller and a meter specialist.This person would follow up on the large meters to make sure they get tested regularly and that the small meters are on a regular change out program. Account information would also be reviewed on a regular basis to track this. The district has one open position and staff will discuss if this combination position would better fill their needs before coming to the council with the budget information.The engineer went out with the meter reader and indicated he is doing a good job.The meter reading is not the problem.The system is accurate.They need to concentrate on the meter accuracy.That will not make it go away,but the target would be to reduce the production losses on the production side of it from 5% to 2$or 3%.On the customer meter system,they would like to go to about 6% to 7%,which is an acceptable loss. Mr.Waldron commented it only shows a difference of 467,000 on the delivery to the system in February 2005 on page 8.He asked if that was because of the two stuck meters. District Operations Manager Brian Hall stated all the information comes from different sources and they do not line up exactly.They need to look at the average at the end of the year to make it accurate.Overall,they have improved a little bit but they need to improve more.These are through June 2005.They were the most current numbers he had to work with.One meter was changed in July because of a situation that occurred in June and a brand new meter was put into a mobile Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 2 of 8 home community and their water bill went through the roof.They had a test company come out and test the meter;the meter was accurate.They have since learned that the mobile home community had some leaks that they ignored over the years because they were not paying much for them.They will continue to test the meters for large customers,especially if the usage increases drastically.A large increase would be a cause for concern. Vice Chairperson Eck commented he did not know they would have to go to an engineering firm.He thought the district was in enough control where they could have done it themselves.He thought they were going to get an intergovernmental agreement with Mesa to come and test our meters one time through HDR.He thought they were also going to take a look at the vaults and make sure water was not sneaking through the check valves. District Operations Manager Brian Hall stated they have offered to do that.Jim King came out and spent a day with them and inspected every vault they have.They made a lot changes as a result,including going to the single jet metron meters.Some of the big compound meters are not very accurate,even with the bypass meter.They also had several places where fire protection was mixed with the actual residential service;one meter fed the whole place and it was not certified for fire flow. They have taken the recommendations of Jim and changed out all of those meters over the last year. Vice Chairperson Eck commented they should do what they need to do,but he thought staff could have done this. District Operations Manager Brian Hall stated he thinks they could have,but he does not feel they could have looked at i t for an isolated two week period of time without getting involved in so many other things.He spoke again about the open position possibly being used as a special position for crossconnection and reviewing the large accounts. Vice Chairperson Eck asked if they do 10 year change outs for the smaller accounts. District Operations Manager Brian Hall stated they are on a 15 year change out for residential.They are also Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 3 of 8 about two-thirds of the way through changing out all the inch -and -a -half and 2 -inch meters,which was also a recommendation from this. Vice Chairperson Eck asked what the water loss is now. District Operations Manager Brian Hall stated they have not done i t for this year but he is afraid i t is still up there.They will look at it:they are putting the numbers together now for the annual report.They should know the water loss for certain in a couple of weeks. Vice Chairperson Eck commented he believes there are probably a dozen parks out there like the one park he was talking about earlier. District Operations Manager Brian Hall stated they are also afraid there are some out there that are not metered at all.They are sometimes found through detective work and other times i t is a fluke. Vice Chairperson Eck closed the item and moved on to the next item. ACKNOWLEDGE RECEIPT AND PRESENTATION OF COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE WATER UTILITY COMMUNITY FACILITIES DISTRICT FOR THE YEAR ENDED JUNE 30,2005 )District Finance Manager John White briefed the board on the item.He stated the financial report was provided a couple of weeks ago.He called their attention to page 29,the budgetary comparison schedule.He added if they have any questions,he could be reached at his office. Vice Chairperson opened the item to board discussion.There being no discussion,he called for a motion. Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 4 of 8 Mr.Waldron MOVED THAT WE ACKNOWLEDGE RECEIPT OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT FOR THE YEAR ENDED JUNE 30,2005. Mr.Insalaco SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND DIRECTION ON PROPOSED FISCAL YEAR 2006-07 BUDGET SCHEDULE )District Finance Manager John White briefed the board on the item.The packet included a proposed budget calendar.He asked if there were any problems or modifications with the calendar as presented. Vice Chairperson Eck opened the item to board discussion. Mr.Sippel asked if there would be a difference in pay for the position Brian is thinking of filling. District Operations Manager Brian Hall stated he does not know,he has not talked to Human:Resources yet. Vice Chairperson Eck closed the discussionand called for a motion. Mr.Dietz MOVED THAT THE FOLLOWING 'DIRECTION BE GIVEN TO STAFF REGARDING THE PROPOSED 'FISCAL YEAR 2006-07 BUDGET SCHEDULE:THAT THE SCHEDULE BE FOLLOWED THAT WAS PRESENTED IN OUR PACKETS BY BRIAN. Mr.Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion.carried. Water Utilities Community Facilities District Meeting Minutes:of February 21,2006 Page 5 of 8' DISTRICT OPERATIONS MANAGER REPORT District Operations Manager Brian Hall stated the arsenic treatment was done with a design/build.They got a team of the designer,general contractor and the equipment supplier.They are having some problems with the equipment supplier coming back and tuning the equipment.The general contractor is on the hook to make sure it works:the general contractor has sent a direct letter to his equipment supplier telling him he needs to be there and get i t working right or it will be considered abandonment of duties and they will move on with someone else and apply the monies owed to make i t happen.The district is still in compliance with Arizona Department of Environmental Quality.The district is no longer operating under a blend program.There is some time before they have to turn in the reportable samples.They are working through the process but they are .not there yet.He is waiting -for.a report from Hunter Contracting as to what the next step is.The drilling of Well #5 is complete except for the approval to operate.:I t is pumping water but they are not getting quite the volume with the existing pump that they thought -they would.It does 675 a minute.The arsenic came back under the new standard;not as low as the oldhole but they are confident it will remain there.It may also drop after i t has been in operation for a couple of months. Vice Chairperson,Eck asked -whatthe old well was. District Operations Manager Brian Hall stated the old well was 6 to 65 parts per billion.This one is 7..8 per billion.It may pose a problem in the future as; they were planning on blending this well with the new #8 well.I t will throw the blend a little out of whack.He stated the electricians are scheduled to start tomorrow on all the control wiring for well #8 He had a meeting with Salt River Project on Monday and they :aretringing the power from a different direction.I t is the district's responsibility to get power to the property;it was not under Felix Construction's contract_As i t is coming from ,a different direction,the district will have to provide a ditch and conduit.Rather:than writing a spec and going to bid again for another project that may take iseveral months to get off the ground,the district has asked Felix Construction to subcontract it out as -a change.Felix Construction assured him they will not add a percentage on top of the job other than,just their time to coordinate it.The:board approved an additional 5% on that:if there.are any problems,they will come back to the board then. It should be completed shortly:i t needs the power hooked up_Beeman Drilling Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 6 of 8 came back and cleared the plug from the well at their expense.The temporary treatment facility is still operational on Ironwood.As soon as Well #5 is turned on,it will be turned off.There is some disagreement in the contract over actual manpower for manning the plant.The district has received a letter from U.S.Filter requesting more money to support their operators that they bring out of California that stay a week at a time.There will be some discussion on that;he might not have nailed down those costs tightly enough in the contract.It continues to produce good water;when we get back to the warm well water they may get customer complaints.He does not know where the Mesa agreement currently is;i t is somewhere being signed. District Clerk Kathleen Connelly stated it was sent to Mesa per Kay's instructions with instructions for them to forward it on when their process was completed.We have not heard back from them. District Operations Manager Brian Hall stated he has been so busy the last couple of weeks he has not had time to look for it. Vice Chairperson Eck asked if they were talking about the tie-in agreement. District Operations Manager Brian Hall stated they are. Vice Chairperson Eck commented he has been told i t is complete. District Operations Manager Brian Hall stated it probably is;i t is just a matter of gathering all the signatures. DISTRICT MANAGER REPORT District Manager George Hoffman stated he met with a developer 4 to 6 weeks ago who is interested in developing 80 acres at Idaho and the freeway as commercial.The district has property contiguous to what he is developing. He asked the developer if he is possibly interested in the 16 acres the district owns,but the developer was unsure at that time.He does not know if the district is interested in selling,but the possibility exists to do i t at the same time and not have the property get boxed in.The developer has since called back and stated they were interested in talking.He is researching with the district clerk and attorney on how the property could be sold if the board so desires.The next step would be to get an appraisal to determine what i t is worth.He does not know what the timing would be to maximize that Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 7 of 8 asset.He would like them to think about it while he gets the information on the property's worth.He will then bring that information back to them and have them be prepared to give some guidance at a future time. DISTRICT TREASURER REPORT District Finance Manager John White stated he had included the monthly financial report today.He tries to get it out every month but has been unable to do so over the last couple of months due to the costs related to the temporary treatment plant.When comparing where they are this year to where they were last year,it does not look favorable.The expenditures over revenues are $1,278,000.Last year the district was $390,000 to the good. Part of it is planned because every year capital projects are budgeted that up until now were not getting done.Plant operating expenditures year to date are $1,288,000 versus $688,000,and most of that is related to covering the water shortfall in production from Well #5.The district is $1,178,000 in capital outlay this year compared to $148,000 last year at this time. Additional well costs are mostly related to the temporary treatment plant.He described what is in the February statements.The third report shows the capital outlay expenditures,broken into 4 columns by project. Vice Chairperson Eck asked if the highest was Well #5 being down and the water having to be purchased. District Finance Manager John White stated that is correct,along with the rental.The monthly rental is $200,000 plus the set up cost:combined i t is $300,000.The water purchased from Arizona Water is only $266,000.They are the bulk of the costs. DISTRICT COUNSEL REPORT None. ADJOURNMENT )Vice Chairperson Eck adjourned the meeting at 6:30 p.m. ACCEPTED THIS 16TH DAY OF MAY ,2006,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 21,2006 Page 8 of 8 SIGNED AND ATTESTED TO THIS 16TH DAY OF MAY ,2006. Douglas Vbleman 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 21st day of March,2006.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 17th day of April,2006. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 21,2006 Page 9 of 8