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Home My WebLink About2006-09-19 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING SEPTEMBER 19, 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 September 19, 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 6:01 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:George Hoffman, District Manager Kathleen Connelly, District Clerk Giao Pham, District Engineer John White, District Finance Manager Doug Dobson, Utility Director Hazel Randall, District Admin. Asst. Others Present:Assistant City Manager Bryant Powell Public Works Manager Shane Kiesow APPROVAL OF MINUTES OF SEPTEMBER 5, 2006 ) Mr. Dietz MOVED THAT THE MINUTES OF SEPTEMBER 5, 2006, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 1 of 8 Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2006- 2007 )District Finance Manager John White briefed the board on the item.He stated the budget package presented to the board last week reflects the changes that were directed by the board at the last meeting.The manager's recommendation column reflects the changes that the operations manager had proposed which were taking out the land sale and taking out the incentive recharge.The changes directed by the board have been put into the proposed column as are the estimates for changes of revenue.He reminded them that the board directed staff to incorporate option 6 into the budget which establishes a contingency line item and monies for emergencies. Mr. Sippel asked how much money will be going into contingency. District Finance Manager John White stated it would be about $310,000. Vice Chairperson Eck commented it will be about $150,000 after they pay for the incentive. District Finance Manager John White stated that they had already taken out the $150,000 for the incentive.Option 6 also introduces a tiered rate to encourage conservation and it also maintains lifeline level of service.The 5/8" meters were limited to a 99 increase per month.The biggest dollar item added to the budget, which comes under administration, is $66,000 plus for the Damon S. Williams contract.It had not been included in the budget at the time the contract was awarded.He also moved some money from administration capital to rents and leases on the recommendation Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 2 of 8 of the previous manager in order to lease/purchase a copier.In addition, the district attorney's retainer is $2,000 per month and is reflected under legal services. Vice Chairperson Eck commented the $66,000 sounds like a lot for a consultant but he believes that it will pay for itself many times over.He is hoping they will get the information they need to assure the water supply through that.He has confidence in the company that has it. Chairperson Coleman commented one of the papers has reported that the district has been operating in a deficit ever since they took it over.He asked if they have ever operated at a deficit. District Finance Manager John White stated in six of the twelve years expenditures have exceeded the revenues at times.This year they have not.In those years, they had significant capital projects wherein they used up savings that had been accumulated.This past year also included significant capital projects including Well #8, the arsenic project at Well #6, and the redrilling of Well #5. There was also an operating hit for the Central Arizona Project water processing.From a conventional governmental accounting standards basis, which is used in the private sector to say whether or not they made or lost money, this will be the first year that the district has lost money since its second year of operation.Every other year in between the district has made at least a six -figure income, and made a seven -figure income in 2003. Vice Chairperson Eck asked if that was net income. District Finance Manager John White stated that is correct. Mr. Dietz commented the paper also said they would cut into a multi -million dollar budget deficit with this rate increase.He asked if they were in that large of a budget deficit. Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 3 of 8 District Finance Manager John White stated they are not.They will have lost somewhere in that area this year. Mr. Dietz commented he just wanted to clear that up. Vice Chairperson Eck commented he was quoted a lot in that article and he wanted to say for the record that he did not say that information. Mr. Sippel commented they were talking about the guy from Mesa so he was giving Mesa numbers. Vice Chairperson Eck commented he had told him that he agreed with it affecting 70% of the district customers and the rate increase being 99.He asked if the initial cost for the arsenic treatment is about $800,000. District Finance Director John White stated it is $796,000, which is very comparable.He got a very good email from the City of Goodyear.They have a well that produces 470 gallons per minute and their cost for a treatment plant was $797,000.He thought it was a good comparison.However, they do not know what their arsenic content was before treatment. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FY 2006-07 )Chairperson Coleman opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and moved on to the next item. RESOLUTION NO. 2006-009:ADOPTING ESTIMATES OF EXPENDITURES BY THE DISTRICT FOR FISCAL YEAR 2006- 2007 Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 4 of 8 )Chairperson Coleman opened the item to board discussion.There being no discussion, he called for a motion. Mr. Waldron MOVED THAT RESOLUTION NO. 2006-009, 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, 2006 AND ENDING JUNE 30, 2007; DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) FOR FISCAL YEAR 2006-2007, BE APPROVED. Mr. Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2006-008, RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FY 2006-07 INCLUDING NEW MONTHLY BASE SERVICE RATES AND CONSUMPTION RATES AND ESTABLISHING AN EFFECTIVE DATE )Chairperson Coleman opened the item to board discussion.There being no discussion, he called for a motion. Mr. Dietz MOVED THAT RESOLUTION NO. 2006-008, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FISCAL YEAR 2006-07 INCLUDING NEW RATES FOR MONTHLY BASE SERVICE AND CONSUMPTION; AND ESTABLISHING AN EFFECTIVE DATE, BE APPROVED. Mr. Severs SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 5 of 8 VOTE:Unanimous. The motion carried. RESOLUTION NO. 2006-007, DECLARING AS PUBLIC RECORD AND ADOPTING THE• CLASSIFICATION PLAN AND COMPENSATION PLAN FOR FY 2006-07 ) )Chairperson Coleman opened the item to board discussion. Mr. Sippel asked if this means the employees will now receive a raise as the scale had not been approved or had they already received one. District Finance Manager John- White stated they are ratifying the raise. Mr. Sippel commented they already received the raise. Vice Chairperson Eck commented they already received their cost of living allowance on July 1. District Finance Manager John- White commented they are on the step plan and itHgoes by the step increases: Chairperson Coleman closed the discussion with no further comments and called for a motion. Mr. Waldron MOVED THAT RESOLUTION,NO.:2006-007, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNTIY.FACILITIES DISTRICTACITY OF APACHE JUNCTION,- ARIZONA) DECLARING LAS A PUBLIC RECORD AND ADOPTING= CERTAIN -DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE"CLASSIFICATIONPLAN ,FOR FISCAL YEARI2006-2007" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2006-2007"; AND DECLARING AN-EMERGENCY,:BE:APPROVED. Mr. Dietz SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 6 of 8 VOTE:Unanimous. The motion carried. DISTRICT UTILITY DIRECTOR REPORT' None. DISTRICT MANAGER REPORT None. DISTRICT TREASURER:REPORT- None. DISTRICT COUNSEL REPORT None. ADJOURNMENT adjourned the meeting at 6:16 p.m. )Chairperson Coleman ACCEPTED THIS 3RD DAY OF BY THE CHAIRPERSON AND DISTRICT BOARD COMMUNITY FACILITIES DISTRICT (APACHE CITY OF APACHE JUNCTION, ARIZONA. OCTOBER , 2006, OF THE WATER.UTILITIES :JUNCTION WATER COMPANY), SIGNED AND ATTESTED .TO THIS 3RD 2006. ATTEST: Kathleen Connelly District Clerk DAY OF:. Douglas Chairpe OCTOBER oleman on Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 7 of 8 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 19th day of September, 2006.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 21st day of September, 2006. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 19, 2006 Page 8 of 8