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HomeMy WebLinkAbout2009-07-07 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JULY 7, 2009 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 July 7, 2009, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Insalaco called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Insalaco Vice Chairperson Eck Mrs. Robin Barker Mr. Douglas Coleman Mr. Rick Dietz Mr. Jeff Serdy Mr. Chip Wilson Staff Present:George Hoffman, District Manager Kathleen Connelly, District Clerk David Fern, Utility Director Donna Meinerts, District Treasurer John White, District Finance Manager Frank Blanco, District Director Giao Pham, District Engineer Others Present:Bryant Powell, Assistant City Manager Hazel Randall, District Admin. Asst. APPROVAL OF MINUTES OF JUNE 16, 2009 )Mr. Dietz MOVED THAT THE MINUTES OF JUNE 16, 2009, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 1 of 12 Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. MOTION FOR EXECUTIVE SESSION )District Clerk Kathleen Connelly advised the district counsel contacted her last week to say the executive session is not necessary tonight as the agreement is not ready tonight. AGREEMENT WITH DESERT COMMUNITIES AND ARIZONA STATE LAND DEPARTMENT FOR PURPOSE OF SHOWING FINANCIAL CAPABILITY FOR ARIZONA DEPARTMENT OF WATER RESOURCES' REVIEW OF DISTRICT APPLICATION FOR MODIFICATION OF ITS DESIGNATION FOR ASSURED WATER SUPPLY )District Clerk Kathleen Connelly stated the agreement is not ready and this item should be continued to August 4, 2009. Mrs. Barker MOVED THAT WE CONTINUE ITEM NO. 5 TO AUGUST 4TH. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. ACCEPTANCE OF BID RECEIVED FROM HILL BROTHERS CHEMICAL COMPANY TO PURCHASE WATER TREATMENT CHEMICALS )District Director Frank Blanco briefed the board on the item. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 2 of 12 Chairperson Insalaco opened the item to board discussion.There being no discussion, he called for a motion. Mr. Dietz MOVED THAT THE AWARD OF BID AS ATTACHED FOR THE WATER TREATMENT CHEMICALS PROJECT NUMBER WD -2009-02 TO HILL BROTHERS CHEMICAL COMPANY BE APPROVED, AND THAT THE BOARD CHAIR OR VICE CHAIR BE AUTHORIZED TO SIGN THE AGREEMENT PENDING FINAL APPROVAL AS TO FORM BY LEGAL COUNSEL. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2009-2010 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FISCAL YEAR 2009-2010, CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES, AND DATE, TIME AND LOCATION FOR CONSIDERATION OF PROPOSED FINAL BUDGET )District Director Frank Blanco briefed the board on completed and future projects. District Finance Manager John White briefed the board on the budget.There are no changes in rates for the installation, construction water or account deposits or miscellaneous fees.The base rate for a small use customer will go up slightly more than a dollar a month, and for larger use customers it will go up about six dollars per month. Vice Chairperson Eck asked if he had gone over the fire hydrant meters. District Finance Manager John White stated there is no change for fire hydrant meters. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 3 of 12 Vice Chairperson Eck commented there actually is.It went from $5 to $6 per thousand. District Finance Manager John White stated that went up last year.They are proposing leaving that at six dollars. Vice Chairperson Eck stated they will not be going any further than that. District Finance Manager John White stated that is correct.Also, the minimum rate on that is not increasing. Vice Chairperson Eck commented he had been going on the impression that they would be increasing the rates on the fire hydrant meters this year and he had no problem with that as they have been trying to help them build the area but they can be putting a burden on your system so far as allocations and such.If they use it, they should pay for it. District Finance Manager John White stated they will still have the highest rate in the system. they could still go to raw water. White stated they still can. how much that is. Vice Chairperson Eck asked if District Finance Manager John Vice Chairperson Eck asked District Finance Manager John White stated the raw water from the Central Arizona Project Canal is $2.50 per thousand with a $7.50 monthly base. Mr. Dietz asked if they were increasing their connection rates which would be close to Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 4 of 12 development fees for this time around since they did not do it with the last budget. District Finance Manager John White stated they did upgrade them the last time around. Mr. Dietz commented he thought they were going to try to keep that in line with a slow percentage increase instead of doing a large increase at one time. District Finance Manager John White stated that is something they can look at with respect to the adoption of the final budget and rate schedule. Vice Chairperson Eck commented they are basically doing that, but some years, like this year, that steady two or three percent may not be adequate enough to get us in the black. Mr. Dietz commented they are not doing any increase in the connection fees.Those are a one time capital facility fee.That is what we use for our building a treatment plant or what have you.Those funds are put away to do that, just like the city hall was built. Assistant City Manager Bryant Powell stated they did consider that.They updated the base rate and consumption rates to reflect the board's desire on that.Their thinking initially with the connection fees was that they did not ask Tischler Bise to build in a construction price index as we do in the city.They can go back and ask them to do that and bring it back for final adoption. District Manager George Hoffman stated they can do that.He is curious whether a construction price adjustment would go up.He referred the vice chairperson to a conversation they had earlier over roadway construction; it is a good time to build as prices have gone down. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 5 of 12 Vice Chairperson Eck commented it is, but he asked how that ties in with the $49,000 loss on the water district. District Manager George Hoffman stated he believed Board Member Dietz was talking about connection fees which are most analogous to impact fees which are based on the cost of doing construction. Mr. Dietz stated that is correct. District Manager George Hoffman asked if they are to double check to see if there is an adjustment factor in there. Assistant City Manager Bryant Powell stated they would want to double check to see what is in the ordinance and then the second thing would be a policy decision. Mr. Dietz commented he just wants to make sure they are in line with where they should be with when they start developing the area south of the freeway. They need to be able to collect those fees to be able to produce and have the funds to carry on with future plans for our own water treatment facilities and things of that nature. Assistant City Manager Bryant Powell stated they did the big study last year and they should be okay. District Finance Manager John White stated last year we were at a level that was the highest defensible fee that we could have according to Tischler Bise, if it were to be challenged by a developer in court.It may or may not have changed marginally if they had done a study this year. Mr. Dietz requested they take a look at it. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 6 of 12 District Manager George Hoffman stated they will check to see if there is an adjustment allowed. Vice Chairperson Eck commented he was concerned overall that it is in the red $49,000.Staff did a great job on the budget, but he is concerned it is in the red.He wants to get out of the red and into the black. Mr. Dietz asked if taking a look at these fees would interfere with adopting the tentative budget.He asked if they would be increasing the budget. District Clerk Kathleen Connelly stated the budget for the water board is different than the city.They do not have the same restrictions as in the city budget. Mr. Dietz commented they can increase or decrease whatever. District Clerk Kathleen Connelly stated they can up until October 1.She added it is not a concern. RESOLUTION NO. 2009-003, ADOPTING A PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING JUNE 30, 2010, ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR FISCAL YEAR BEGINNING JUNE 30, 2009 AND ENDING JUNE 30, 2010, ESTABLISHING A PUBLIC HEARING DATE AND DESIGNATING DATE, TIME AND LOCATION FOR PUBLIC HEARING FOR FINAL BUDGET ADOPTION ) )District Director Frank Blanco requested adoption of the resolution. Mrs. Barker commented the resolution also includes blank hours of temporary personal leave Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 7 of 12 for district employees.She asked if someone would fill them in on that. District Manager George Hoffman stated last year the board did not afford employees any step or cost of living increase.The board, at the time, was interested in letting employees know that although the board could not provide a compensation increase, they were valued and appreciated, and opted to provide 3 days of administrative leave that could be used over the course of the year.If the board opts to do so again this year, it would provide for that.If they choose to do that, he requested they change the effective date to beginning July 20, 2009 so that it does not hit us in the middle of a payroll cycle. Mr. Dietz asked if it is considered under Item 8 or Item 9, which is the compensation plan. District Clerk Kathleen Connelly stated Item 8 as it is part of the budget.The reason it is on the agenda is because it was brought up in conjunction with the council budget discussion and they parallel. Assistant City Manager Bryant Powell stated it should be described in hours, not days. Mrs. Barker commented it would be 24 hours. Vice Chairperson Eck asked what the cost of the 24 hours is roughly. District Manager George Hoffman stated there is no payroll cost; the cost of producing payroll will not go up because of this.What is experienced is that instead of someone taking a sick day or vacation day, they will use this administrative day which keeps their sick or vacation balances higher.He thinks the question is what the cost of payroll is per day.He asked the finance manager if he would know that. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 8 of 12 District Finance Manager John White stated the entire district would average out to about $1,000 per day. Vice Chairperson Eck commented that 3 days off is only costing the district $3,000. District Finance Manager John White corrected it to be $2,000 per day. District Manager George Hoffman stated the 3 days would be $6,000 in cost to the district.This is not a cost to payroll, but to productivity. Vice Chairperson Eck commented he can call it what he wants, but it is a loss either way as other things could be getting done.He does not mind doing that as they are not giving a cost of living adjustment or a merit, and they are asking people to hang on.They are talking $6,000 to give them three days off; that is pretty cheap. Mr. Dietz commented it is the least they can do to reward them for all the additional jobs and things above and beyond that the whole organization has done, not just the water district.He is happy that they can at least do this. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mrs. Barker MOVED THAT RESOLUTION NO. 2009-003, A RESOLUTION OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), PURSUANT TO A.R.S. § 48-716, ADOPTING A PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING JUNE 30, 2010; ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING ON JUNE 30, 2010; ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET; AND DIRECTING STAFF TO SOLICIT COMMENTS FROM THE CITY OF APACHE JUNCTION ON THE PROPOSED ANNUAL BUDGET BE APPROVED; AND Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 9 of 12 I FURTHER MOVE THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON AUGUST 4TH AT 6:00 P.M. IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, 300 EAST SUPERSTITION BOULEVARD, APACHE JUNCTION, ARIZONA; AND I FURTHER MOVE THAT WE APPROVE 24 HOURS OF TEMPORARY PERSONAL LEAVE FOR DISTRICT EMPLOYEES FOR FISCAL YEAR 2009-2010 BEGINNING JULY 20, 2009 AND ENDING JUNE 30, 2010, SUBJECT TO THE FOLLOWING TERMS:THIS LEAVE WILL BE PLACED IN A SEPARATE BILLING ACCOUNT APART FROM VACATION AND SICK LEAVE; IT WILL BE CONSIDERED STRAIGHT TIME AND WILL NOT BE CONSIDERED IN THE CALCULATION OF OVERTIME; THIS LEAVE WILL ONLY BE AVAILABLE FOR USE BEGINNING JULY 20, 2009 AND UP TO AND INCLUDING JUNE 30, 2010; THERE WILL BE NO CARRYOVER OF THIS LEAVE AND EMPLOYEE SHALL OBTAIN APPROVAL FROM HIS/HER DEPARTMENT DIRECTOR; THIS LEAVE SHALL BE EXTENDED TO NON-EXEMPT AND EXEMPT DISTRICT EMPLOYEES WHO REGULARLY WORK 24 HOURS OR MORE PER WEEK; IT SHALL BE PRORATED FOR PART TIME DISTRICT EMPLOYEES; THIS LEAVE SHALL BE EXTENDED ONLY TO THOSE DISTRICT EMPLOYEES WHO ARE AN EMPLOYEE OF RECORD ON OR BEFORE JULY 1, 2009; THIS LEAVE SHALL NOT BE ADDED TO OR INCLUDED IN ANY PAY OUT PROVISIONS.I FURTHER MOVE THAT THE DISTRICT MANAGER IS AUTHORIZED TO MAKE FINAL ADMINISTRATIVE ADJUSTMENTS TO THESE TERMS. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2009-004, DECLARING AS A PUBLIC RECORD AND ADOPTING THE "CLASSIFICATION PLAN FOR FISCAL YEAR 2009-2010" AND THE "COMPENSATION PLAN FOR FISCAL YEAR 2009-2010" Chairperson Insalaco called for a motion. Mr. Dietz MOVED THAT RESOLUTION NO. 2009-004, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 10 of 12 APACHE JUNCTION, ARIZONA) DECLARING AS PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN FOR FISCAL YEAR 2009-2010" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2009-2010"; AND DECLARING AN EMERGENCY, BE APPROVED. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL REPORT None. ADJOURNMENT adjourned the meeting at 6:34 p.m. ) Chairperson Insalaco ACCEPTED THIS 4TH DAY OF AUGUST , 2009, 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 4TH DAY OF AUGUST 2009. Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 11 of 12 z . g hn S. Irisalaco airperson 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 7th day of July, 2009.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 9th day of July, 2009. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of July 7, 2009 Page 12 of 12