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HomeMy WebLinkAbout2007-04-03 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING APRIL 3, 2007 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 April 3, 2007, 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: Others Present: George Hoffman, District Manager Kathleen Connelly, District Clerk John White, District Finance Manager Giao Pham, District Engineer Kay Bigelow, District Counsel Doug Dobson, Utility Director Frank Blanco, Water Director Assistant City Manager Bryant Powell Hazel Randall, District Admin. Asst. Michelle De Haan, Damon S. Williams Scott Davis, Damon S. Williams Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 1 of 12 APPROVAL OF MINUTES OF FEBRUARY 20, 2007 )Chairperson Coleman called for a motion. Mr. Dietz.MOVED THAT THE MINUTES OF FEBRUARY 20, 2007, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PRESENTATION AND DISCUSSION ON FINAL WATER RESOURCE ASSESSMENT REPORT FROM DAMON S. WILLIAMS & ASSOCIATES )Utility Director Doug Dobson introduced the new Water Director, Frank Blanco, and stated he would be in charge of meetings from this point forward.Mr. Blanco gave a brief history of his job experience. Ms. Michelle De Haan from Damon S. Williams stated they would be giving the board the final water resource assessment report.The project goals are in line with the experience of the new water director.At the February 6 meeting they presented a draft summary and determined that the board has a desire for the district to have sustainable growth.They were asked to talk with the vice chair relative to his knowledge and some questions that he had.They met with him and staff, and later the new water director, to get everyone up to speed on the project and they are here now with their recommendations. Mr. Scott Davis from Damon S. Williams stated they had talked about the acquisition of water rights, Indian water rights through leases and lobbying state agencies aggressively for the reallocation program for 2010. They also looked at the Mesa interconnect booster station, which Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 2 of 12 should be constructed and used as a back up water supply to the wells for one or two years if they succeed in building a Central Arizona Project plant. It would also be an interim surface water treatment facility for the district.It would be an emergency back up once the Central Arizona Project plant is built in times of outages.The third recommendation is the Central Arizona Project plant itself; it will take about 2 to 3 years for its design and construction.He recommended the district hire an aggressive water rights attorney; someone who will start getting the water they need now to sustain the growth.They need to obtain renewable water supplies.By 2025 everything they take out of the ground they must be able to put back in.The district needs to negotiate the land purchase agreement for the Mesa interconnect so that they can get started in mid -2007.It should be up and running in a few months.He described the design process for the water treatment plant.He estimated the land purchase for the interconnect to be $80,000. Vice Chairperson Eck commented it is important for them to get the land for the transfer station; the water superintendent, the city manager and the mayor should get involved. Mr. Scott Davis commented they are making a recommendation that they move forward on that as soon as possible. Vice Chairperson Eck commented they have to deal with a homeowners association that is concerned with noise, sight and everything.He thinks they should take a crew over there to show they are willing to work with them. Mr. Scott Davis stated the land that they chose is already zoned for utility development. It is not inside a development or housing area.The price of a 2.6 million gallon plant ranges from $11.7 to $16.2 million.It includes the construction of a 20 million gallon a day turnout facility.It should be the largest possible structure at the canal, but they should be able to equip the initial phase for Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 3 of 12 2.6 million.They can phase it up but the actual construction at the canal should be the maximum effort. Mr. Dietz commented he thought they had discussed last time that this would be a dual plant where half could be shut down at a time. Mr. Scott Davis stated the plant has redundancy built into the costing structure at the current time.They would have two identical plants if they go with the conventional plan. Mr. Dietz asked if they would be constructing one and then construct the other. Mr. Scott Davis stated it would all be built at the same time.The internal part or equipment of the plant would be redundant so that if they have to shut down some equipment, they can still produce water.Some of the cost could be reduced by building the interconnect as it can be used as the back up for now. Mr_ Dietz commented he was. under the impression that the district needs both. Ms. Michelle De Haan stated the interconnect is something that will buy the district some time while this facility is being designed to provide a long term back up in place for the surface water treatment plant. The capital costs for the water treatment facility currently has in this process redundancy.If they want to phase some of the process redundancy in over time, the district can do so by using the interconnect as a back up.It will allow them to keep some of their costs down and spread them out over time. Vice Chairperson Eck commented that would be if the district did not have the capital money at that time. Ms. Michelle De Haan stated that is correct.She emphasized that this could be nailed down Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 4 of 12 a little further during conceptual design so that the costs are more refined.At this level they want to be more conservative on the costs so that they are prepared in the future. Mr. Scott Davis stated those are the basic recommendations that they are putting in the final report. Vice Chairperson Eck commented he spoke with Frank and the other water district employees last week to assure them the district was still in the water business.There was some question as to whether the district still was last July.This report shows them what they intend to do.He is really concerned about the tie in with the City of Mesa.He spoke with Karen Thornsen yesterday, the person who works for Mesa who worked on the tie in for the district.She was concerned about the sensitivity of politics; nothing has come to her level.She wants to see this tie in continue to succeed and she still has the green light.The tie in has to happen, they have to get an aggressive water attorney, and they need to get on with the design for the water treatment plant.When he told Karen that the district does not have an attorney for the water allotment, she stated they had better get one.There are a lot of things going for the district and it has a lot of good people on its side.He feels like they are going in a very positive direction. Chairperson Coleman closed the discussion and moved on to the next item. DISCUSSION ON AND DIRECTION TO STAFF REGARDING PROPOSED FY 2007- 08 BUDGET SCHEDULE District Finance Manager John White briefed the board on the item.He stated he submitted the schedule to the board and requested their guidance.The schedule is similar to the city's but it is not identical as the district has until October 1 to adopt a final budget.The tentative budget must be adopted by July 15.They are hoping to do everything earlier. Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 5 of 12 District Manager George Hoffman asked if the first board action would be after June 5. District Finance Manager John White stated the presentation for approval is prior to May 15. It can be adjusted up or down. District Manager George Hoffman stated the tentative adoption would be May 14 or May 15. District Clerk Kathleen Connelly stated they cannot do that as it conflicts with the general election. District Manager George Hoffman stated the board will be reconstituted after June 5. They need to determine who will do what. Mr. Sippel commented he thinks the new board should be the one to do the budget. Mr. Waldron commented it states June 11 is budget approval by resolution District Finance Manager John White.stated he had the submission for review -on May 14 -or -15. District Clerk Kathleen, Connellystated May 15 is the general :election.; it would be. difficult for the board to meet in.here that night as this:is where:the:ballots are tabulated. District Manager George: Hoffman.asked -.if the budget could just be given-to them or if it had to -be given to them at a meeting District:Finance:Manager John White stated:it:should be submitted beforehand for their review It has -to:be ,approved, which is -basically an acknowledgement Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 6 of 12 that they have the budget for their review.They have had study sessions in past years after the approval process. District Counsel Kay Bigelow stated the law does not require that the budget be presented in a public meeting of any kind.Traditionally they have put the budget in the district board packet accompanied by a presentation or explanation by the finance department at that meeting. Mr. Dietz commented they would get it about a week prior to the meeting and then they had the discussion to go through the line items. District Counsel Kay Bigelow stated that is a good practice but it is not statutorily required to happen on a specific date. District Clerk Kathleen Connelly stated if they want the incoming board to deal with it, that cannot be possible until after June 5. Mr. Sippel commented the incoming board should be approving this, not the outgoing board. District Manager George , Hoffman stated they can get started with the draft budget submission. Mr. Dietz commented they need to set the :timeline. District Counsel Kay Bigelow stated there is nothing wrong with having the incoming board members in the audience during the discussion. Mr. Dietz commented they could make a copy for them, also. Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 7 of112 District Counsel Kay Bigelow stated it depends on how much needs to be done before that time. Mr. Dietz asked if they could do a special meeting on May 16 at 6:00 p.m. District Clerk Kathleen Connelly stated the new board would not be sworn in then. Vice Chairperson Eck commented they are study sessions on those nights. District Clerk Kathleen Connelly stated they are suggested dates.They are not bound to those dates.The only dates they are bound to are the legal deadline for tentative adoption and the legal deadline for final adoption. Mr. Dietz asked what kind of direction he is looking for. District Manager George Hoffman commented he and John could go back; this board has indicated they would like the new board to adopt the budget. They will take into account the May 15 date and bring a revised budget schedule back for their consideration. Vice Chairperson Eck commented this schedule shows June 4 and 5 for study session, with them coming back for budget approval the next week on June 11.They would have the new board then. District Clerk Kathleen Connelly stated the new board will not be sworn until June 5 and there will be only a brief council meeting that night.They have lots of room between now and tentative adoption. Mr. Dietz commented they will know who will be the new council by May 15. Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 8 of 12 District Clerk Kathleen Connelly stated by statute they will not know until they do the canvass of votes which will be June 5. Mr. Dietz commented that they could give them a copy of the budget to have them start reviewing it.They could meet with staff in the meantime to get up to speed so that they would be ready to discuss it at the study session. District Clerk Kathleen Connelly stated that is correct, but they do not possess any statutory authority until they take office. Chairperson Coleman stated they would not be giving direction until they come back with a new schedule. District Finance Manager John White stated they will work internally to fine tune the schedule. DISTRICT OPERATIONS MANAGER REPORT District Water Director Frank Blanco stated Well No. 8 has not been put on line yet.They are trying to get the approval from Arizona Department of Environmental Quality so that they can get this one pumping water before the peak season.It is capable of producing 250,000 gallons per day.It may not be exactly what they were looking for, but it can produce over 7,000,000 gallons in a month, which is a significant amount when considering the amount of water taken from other sources last June, which totaled 12,000,000 gallons.It gets us closer to filling the gap.It will make a difference. Mr. Dietz asked what the hang up has been with the well. District Clerk Kathleen Connelly stated these have not been itemized on the agenda so they cannot be discussed. Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 9 of 12 District Water Director Frank Blanco stated they are trying to finalize Well No. 6 as well.They have the contractor and consultant on board and they are trying to get the final approval for the construction of the well.They are looking at the overall system to make sure they have all the critical equipment and components identified so they can come up with a good capital improvement plan for the coming year.He wants to budget the proper amount to take care of the system. There was general discussion on what could be discussed during this report.District Counsel Kay Bigelow stated they could discuss but they cannot give direction, deliberate or make a decision. Vice Chairperson Eck commented he was told by an employee that something had been thrown down the case in Well No. 8; that it had been vandalized.The board had not heard that until now. District Water Director Frank Blanco stated it was some construction debris that was removed.There is no longer any problem. Vice Chairperson Eck asked if it was a vandalism situation. District Water Director Frank Blanco stated not to his knowledge. Utility Director Doug Dobson stated after the well was drilled and completed, some people from the neighborhood came back and threw 2X4's, construction debris and pieces of concrete down the well.They had to get them back in to clean it all out.There was also a problem with getting the power to the well site. District Water Director Frank Blanco stated it has been resolved, the equipment is back in the casing and they are ready to go. DISTRICT MANAGER REPORT None. Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 10 of 12 DISTRICT TREASURER REPORT None. DISTRICT COUNSEL REPORT None. ADJOURNMENT Chairperson Coleman adjourned the meeting at:6:32:p.m; ACCEPTED:THIS 3RD DAY OF JULY., 2007 BY THE CHAIRPERSON AND. DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTIONWATER:COMPANY), CITY'OF -APACHE JUNCTION, ARIZONA SIGNED AND ATTESTED TO THIS 3RD DAY OF. 2007. ATTEST: Kathleen Connelly District Clerk JULY , n: S. Insalaco Chairperson Water Utilities Community Facilities 'District Meeting:Minutes:of April 3, 2007 Page 11 of 12 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 3rd day of April, 2007.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 17th day of April, 2007. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of April 3, 2007 Page 12 of 12