Loading...
HomeMy WebLinkAbout2006-06-06 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JUNE 6, 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 June 6, 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 Vice Chairperson R. E. Eck, Jr. Mr. Rick Dietz Mr. John Insalaco Mr. Dave Waldron Staff Present: (Mr. Severs and Mr. Sippel were absent.) George Hoffman, District Manager Kathleen Connelly, District Clerk Brian Hall, District Operations Manager John White, District Finance Manager Kay Bigelow, District Counsel Others Present:Assistant City Manager Bryant Powell APPROVAL OF MINUTES OF MAY 16, 2006) ) Mr. Dietz MOVED THAT THE MINUTES OF MAY 16, 2006, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 1 of 17 Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED BUDGET FOR FISCAL YEAR 2006-07 TO INCLUDE DISCUSSION ON DATES FOR TENTATIVE AND FINAL ADOPTION APPROVAL )District Finance Manager John White briefed the board on the item.He stated this is basically a meeting to discuss the policy options before the board.They must have a proposed budget submitted for approval by July 15, 2006.It has been scheduled for June 20.The final must be adopted by October 1, 2006.They are considering adopting the final upon conclusion of the rate study, which would be in mid -August, and that is consistent with what has been done in the past.This is just a study session to discuss policy issues, such as the options on continuing with the Mesa interconnect, the construction of a treatment plant on the Central Arizona Project water, and additional groundwater resources.The proposed budget contains all 3 of these options. Another item in the proposed budget is an estimated sale of the 16 acres should the board decide to proceed to finance future infrastructure. Mr. Dietz commented the tentative budget must be approved by July 15. District Finance Manager John White stated that is correct.Here it is called proposed but it corresponds to the municipal tentative. Chairperson Coleman commented the difference between this budget and the city's is that for final budget adoption they can go up or down, whereas the city can only be reduced. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 2 of 17 District Finance Manager John White stated that is correct. Chairperson Coleman asked if he wanted an indication from the board this evening on the 3 options laid out in the memo. District Water Operations Manager Brian Hall stated that is the next agenda item, District Clerk Kathleen, Connelly asked if there would be any problem with the date of June 20 for the 'tentative adoption. Mr. Dietz stated they do not have any place to give direction with this item.He asked if they should do it at item 4. Chairperson Coleman stated that is correct. District Clerk Kathleen Connelly stated they can indicate if that is an acceptable date for them.If not, they do not have the first set of meetings in July and they would be forced into having a special meeting.. The board consensus was that June 20 would be fine. District Clerk Kathleen Connelly stated it would be two weeks from tonight at 6:00 p.m. There was general discussion as to whether a motion was needed for this meeting.The general consensus was to make the motion. Mr. Dietz MOVED THAT STAFF BE GIVEN THE FOLLOWING DIRECTION REGARDING PREPARATION OF FISCAL YEAR BUDGET APPROVAL:THAT WE COME BACK JUNE 20, 2006 AT 6:00 P.M. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 3 of 17 Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. FUTURE OPTIONS FOR ADDITIONAL WATER RESOURCES OPTIONS; MAY INCLUDE MESA INTERCONNECT, DEVELOPMENT OF DISTRICT TREATMENT PLANT AND DEVELOPMENT OF ADDITIONAL WELL SITES )District Operations Manager Brian Hall briefed the board on the item.He stated he is not sure they are looking for direction tonight.They have placed all 3 options in the budget for the board.If they have made a decision by June 20 on which direction they would like to go, then they could give direction and they could adjust the budget at that time prior to final budget.If the board would like to look into the 3 options for a longer period of time, they will leave all 3 options in the proposed budget and then make the adjustments based on what options they desire prior to final budget adoption. Chairperson Coleman commented that item 6 may actually help them. Mr. Dietz agreed.They would like to have things looked at and studied. District Operations Manager Brian Hall stated they then probably want to leave everything as is until they get the chance to look into it. Mr. Dietz commented it would be until they get a study back. Chairperson Coleman closed the discussion and moved on to the next item. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 4 of 17 POSSIBLE DISTRICT NEEDS ASSESSMENT TO INCLUDE USE OF AN OUTSIDE CONSULTANT TO IDENTIFY AND PRIORITIZE DISTRICT NEEDS IN AREAS INCLUDING BUT NOT LIMITED TO WATER RESOURCES AND CAPITAL IMPROVEMENTS ) )Vice Chairperson Eck commented he asked for this item to be on the agenda.He stated he believed it was time for the district to revise the needs assessment.They thought they were going in the direction to get an interconnect with Mesa; that may or may not be the way to go.He knows of at least one consultant that is of the elite in locating water and in arsenic treatment of water.They are not on the district request for proposal list.He asked how they could be added to the list if they are interested.Anything they do would have to be done and they would have to get an answer back.He asked what the timeline was. District Operations Manager Brian Hall stated they have been shooting for mid -August but they have until the first of October.The final budget must be approved by then.They moved it up because in the past few years they have not been able to move ahead with some projects until the budget is finalized.As a staff, in order to move ahead on things they can move ahead on, they proposed that. However, they do have some time. District Counsel Kay Bigelow stated the district board has adopted the city's bidding policy. It says that if something is $25,000 or over, board permission must be given.For services other than professional services they need to bid it if it is over $25,000.There is an exception for professional services.There is a long standing tradition in the public works department, which has interviewed and collected lists of people with certain qualifications, but there is no law that dictates that this be the process in this case.If the aggregate service was going to be $25,000 or over, the board would have to approve it but it does not have to go to bid.They also do not have to go in accordance with traditional policy.The traditional policy has been a wise thing as it Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 5 of 17 insulates them from political games being alleged.They only have to follow what is dictated by law. Vice Chairperson Eck commented he does not now who they would use but he feels they have to find a source of water to be able to run their system. They sell a product that they cannot produce.He believes they need to revise or update their search for water. District Manager George Hoffman asked what question he would want the consultant to give him advice on. Vice Chairperson Eck commented he would like comparisons.He knows they own the property for the treatment plant.But he is not sure that is now the way to go.He does not want to throw all the money out to consultants, but he would like to know that if they did build a treatment plant, that the land size is adequate, the estimated cost for producing that water, if more land is needed, if they will be capable of serving 4 plus miles down south, if they are capable of drilling a well and doing a pilot study on if they can drill a well.He would like to know if Mesa will only give them 400,000 gallons a minute or if they would consider an increase because of higher demand.He feels we need to find a way to get our own water. District Manager George Hoffman stated he shared his desire to have some state and regional experts look over their shoulders to make sure they are on the right path.He would be comfortable with that personally and professionally.He is curious as to what they would task the consultant with.If they do it with a generic, such as what is the most engineering efficient thing, they could get one answer.If they are asking what should be done in order to secure the future for the district and community in terms of growth, they might come up with an answer that is not the same as engineering.It may cost more to have our own treatment plant, but it is the strategical alternative that helps to secure the future.If you task the engineering firm what is the Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 6 of 17 most efficient way of doing this, you will get an engineering answer. Vice Chairperson Eck commented he was not sure they would be dealing with only an engineering firm.There may be some other professional services that can take an assessment of the district and say where they are at. District Manager George Hoffman stated technical experts are going to give a technical analysis.If he has a vision that overlays that, it needs to be communicated to the consultant. Mr. Dietz commented it appears to boil down to whether ,they are going with the Mesa interconnect or with their own treatment plant.They will go looking for wells south regardless.They will need to have them. District Manager George Hoffman stated that is a good point.He asked if there is broad -based agreement on that. The consensus of the board stated there was. District Manager George Hoffman stated they all agree on that point.The policy choice is narrowed down to the two. Mr. Dietz asked if they can get enough of the water needed from Mesa at the right price to handle everything or is it going to be more logical for them to build the plant. District Manager George Hoffman asked if that was the correct question.He asked if there getting the water from Mesa was really the proper question.Another question would be if the district could be Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 7 of 17 providing this in order to demonstrate to State Land that the city can provide it and that the city is the entity they need to be dealing with.That question is different than Mesa providing enough. Vice Chairperson Eck commented he knows they need to be able to supply the system and he does not believe they are doing that.If that is the question then that.is fine.He wanted to be sure 6 acres was enough.He thought when they bought it that they would be supplying a certain size of.system.He was not thinking of development down south when they bought it.He is not sure 6 acres will be adequate. District Manager George Hoffman stated if the question to the.consultant is that they are contemplating the construction.and operation of a -district treatment facility, they would want to know the operational' issues, the capita]: costs issues, the constraints with our site, and the content for .that policy alternative.That would be a different assignment than telling the district what the engineering efficiency estimate is on proceeding with the Mesa interconnect versus building our own plant.The scope is different. Vice Chairperson Eck commented he believes the Mesa interconnect is falling.It was more important in the last 4 months whenthey had to spend one million dollars to get water as the district did not have its own water. It has become more of an.issue.If they want to go that direction, that is fine with him, but he thinks they need to absolutely do it.If the 6 acres is not enough, that is okay.He thinks the difference in treating water and well water is the new arsenic standards.A lot of wells need the arsenic treatment.He believes the difference between well water and the treatment plant is fairly equal because arsenic plants have to be thrown on the wells wherein, they never had to do' that before.It might make more sense not to -do a treatment plant. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 8 of 17 Mr. Dietz commented he thinks the importance of showing State Land that the district is capable of serving and that we do have our own facilities is going to be very important when they want to annex further south once this is built out.It will look better for the city and water company. Chairperson Coleman stated it would not just look better, but it eliminates having to rely on another entity to provide the water.He would like to see the district contemplate its own treatment plant and determine if the site is large enough and what the costs would be. District Manager George Hoffman stated he is not pushing that.He believes they should be flexible. Chairperson Coleman stated he knows he is not pushing that but that is how he feels. District Manager George Hoffman stated they could come up with an engineering recommendation that would tell them to do one thing but a strategic perception would tell them to do something different. If the consultant is tasked with the efficiency issues and you still strategically want to do this, then you have not figured out if the site is big enough and so on. Chairperson Coleman commented that is what they want to look at. Vice Chairperson Eck commented anything that he recommended would definitely have something to do with the treatment plant being on six acres and what it would cost.He does not know if they want to do a comparison with the tie-in or not.They could just concentrate on their own treatment and well water so that when they cannot treat the water, they can service the system with their own wells. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 9 of 17 District Manager George Hoffman asked if they tasked the consultant with an assessment of building and operating our own treatment plant.He asked if there would be a fairly quick analysis of what the Mesa alternative would look like or does it get into dealing with the shopping center and become fairly detailed in order for it to be a meaningful assessment. District Operations Manager Brian Hall stated if they look back during previous study sessions to a memo that asks several questions, he thinks that the direct issue on whether the site is big enough has been based on the recommendation of just one engineering firm.He does not like to do just one.He would like to have another opinion on the cost as he has had a tough time getting that put together. Mr. Dietz asked if the engineering firm's estimate was the 5.5 acres. District Operations Manager Brian Hall stated it is 5.5 for just the treatment plant itself. There is additional storage and a booster stations, also.If they have an engineering firm look at the treatment plant, he would want them to look at the initial phase of how they get the water to where they need it.He feels that if they went into all the questions and issues of the Mesa interconnect, it would almost double the amount of work they need to look at. Vice Chairperson Eck commented they have talked about the Mesa interconnection for so long that if they had connected when they initially intended to connect, it would not have been such an issue. Mr. Dietz commented that the Mesa interconnect was a perfect solution at the time and at the right price.They were not facing what they are facing now. District Operations Manager Brian Hall stated that is correct.When they finally got an Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 10 of 17 agreement finalized, he was apprehensive about bringing another idea up but enough had changed that he felt if important to write the memo of 6 weeks ago to raise the questions.He will be happy to go in whatever direction they decide. Vice Chairperson Eck commented he thinks they should do a needs assessment on the 6 acres and see about drilling a well down south.He knows he had concerns about being held up. District Operations Manager Brian Hall stated he realizes that the board is anxious to have something happen.He does not feel he will be held up.He would like more information on a treatment plant.The question never entered his mind until Vice Chairperson Eck raised it as to whether the 6 acres was adequate. The district just did a 900 gallon a ,minute temporary plant on about a quarter of an acre. He looked at the economic scale and after putting together what was designed believes it will be even more compact than that. He does not have a problem with someone who designs or builds treatment plants to come in and give them a cost estimate and the area required for the concept plan. Vice Chairperson Eck commented he hoped they could give them some type of estimate on the cost of a treatment plant. District Operations Manager Brian Hall stated they should be able to if they design treatment plants.They can go back to people they have done business with to determine their costs.There are some standards out there. Vice Chairperson Eck asked how he would do it if the board approved some action tonight; would he go after the top 3 on the list. District Operations Manager Brian Hall stated that is what they have done in the past.If the firm at the top of the list is available, he sits down with Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 11 of 17 them and ticks off the things they want them to look at.He described how he has used the lists in the past.They are asked to give a proposal.They then create the scope of work and if it is over $25,000 it would come back to the board for approval. If the proposal looks reasonable, they do a professional services agreement.If the proposal is under $25,000, they go ahead and do them with the direction of the district manager. He gave an example of the reconstruction of the building at Well #5.If they had direction or someone knew of a firm that was specifically well -suited for what was needed, they have the option to do that. Vice Chairperson Eck commented he was not going political.He knows of a firm all the others are going to and that is on top of everything.He wished they were on the list. District Operations Manager Brian Hall stated he would like someone to look at the cost issues and the area that they have to work in. Mr. Dietz asked how fast you could bring it in. District Operations Manager Brian Hall stated he does not care if he uses someone on the list or is directed to use someone specifically because they think that that would be the best firm to do that, as long as they can legally do that.He is open to direction. District Manager George Hoffman stated they do not have druthers. District Operations Manager Brian Hall agreed, adding he does not have a favorite.The firms on the list were placed there for their general overall water expertise, not for anything specific in mind.They had listed 3-5 projects for this list at the time it was done and this was not one of them. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 12 of 17 District Manager George Hoffman stated he would be comfortable if the board deferred to the vice chairman's expertise in this area and talk to his recommended firm first. Vice Chairperson Eck commented he does not even know if they are interested.He commented Brian had done the list and would probably be comfortable with anyone on the list. District Operations Manager Brian Hall stated he would.He would like to check back with them to flesh out the scope and then sit down with the first one on the list and see how they would handle it.If they come in and appear to understand the scope and have built treatment plants or designed them, then he would be comfortable with their knowledge of how big a plant they can put on 6.5 acres and determine the general cost. Vice Chairperson Eck asked if he was free to go and search ,for well water now that they are further south. District Operations Manager Brian Hall stated if the board approved a budget with an exploratory well in it, he would then go to State Land to see how they could work things out and move in the direction of an exploratory well.If they look at Well #7 that was drilled by the landfill and then went away, there were some issues in what they wanted for money for per acre foot of water drawn out of the well plus the cost of right-of-way to get down there with a pipe.It was not financially feasible when they were not sure if the well was going to produce or not.There were arguments from builders and hydrologists as to whether or not it would produce water.There is a process they go through with State Land.They meet the legal requirement of being within 660' of the service area.They were told to get down south as soon as possible as the aquifer is reportedly better.The information he has states that the aquafir gets thicker and the water Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 13 of 17 quality better the closer you get to Queen Creek.There are not many wells down there to be certain. Vice Chairperson Eck asked if it would be beneficial for him to get direction to go ahead with that. District Operations Manager Brian Hall stated if they approve the budget with the exploratory well in there that gives him the direction. Mr. Dietz commented there is $500,000 set aside for that anyway. District Operations Manager Brian Hall stated there is $500,000 set aside for the treatment plant.There is $600,000 for the well itself and some other money for the purchase of property. Mr. Dietz commented he. meant the $500,000 for the treatment facility. District Operations_ Manager Brian Hall stated that is for the -design of the treatmen-t.plant- He has that number but he is hoping it will not be. the case as he would -like to -propose a design/build because it not only works out a little more reasonably -but, in the case of the difficulties we are having with the arsenic plant, it gives them someone else -on their side to fight the battles.It means money out of their pockets and it has worked out well.It is a smoother transition ,when the designer and contractor work together:He put $500,000 in there as it -is an engineering rule of thumb to put 10% of the. estimate:.It is a conservative amount of money.If they do what they -are proposing tonight, to get another engineering firm to look -at the treatment plant including.the.size needed, the cost to build and the cost-to operate, they will _tighten the numbers up before they get to the final budget. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 14 of 17 There was general discussion on if a motion was needed. District Operations Manager Brian Hall stated they need to understand that as they go into the budget process, those things that are included in the budget is what they will push forward on.The only direction he needs is to whether he should contract with an engineering consulting firm to look at these issues. Chairperson Coleman closed the discussion and called for a motion. Vice Chairperson Eck MOVED THAT STAFF BE GIVEN THE FOLLOWING DIRECTION REGARDING A DISTRICT NEEDS ASSESSMENT:WE USE OUR STANDARD DISTRICT PROCESS TO DO A REVISED NEEDS ASSESSMENT ON SECURING ADEQUATE WATER SUPPLY, SPECIFICALLY LOOKING AT OUR 6 ACRE PLUS LAND FOR A TREATMENT PLANT AND DOING A STUDY ON CAPABILITIES OF SIZE, COST OF WATER PRODUCTION, ETC. District Manager George Hoffman asked if they wanted to limit them to firms that have been established through the request for qualifications process. Vice Chairperson Eck commented he is not positive, but he is concerned about the political ramifications.He is not even sure if the firm he was thinking of would even be interested. District Manager George Hoffman stated his motion would disallow them from even considering that option. Vice Chairperson Eck AMENDED HIS MOTION, STATING TO TAKE OUT THE STANDARD DISTRICT PROCESS AND CHANGE IT TO THE CONSULTANT BY PREFERENCE. Mr. Dietz SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 15 of 17 VOTE:Unanimous. The motion carried. DISTRICT OPERATIONS MANAGER REPORT None. DISTRICT MANAGER REPORT None. DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. ADJOURNMENT )Chairperson Coleman adjourned the meeting at 6:43 p.m. ACCEPTED THIS 20TH DAY OF JUNE , 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 2006. 20TH DAY OF JUNE Douglas/Coleman Chairperson Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 16 of 17 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 6th day of June, 2006.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 13th day of June, 2006. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of June 6, 2006 Page 17 of 17