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HomeMy WebLinkAbout2009-08-04 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING AUGUST 4, 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 August 4, 201J9, 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. Rick Dietz Mr. Jeff Serdy Mr. Chip Wilson Staff Present: Others Present: (Mr. Doug Coleman was absent.) George Hoffman, District Manager Kathleen Connelly, District Clerk David Fern, Utility Director John White, District Finance Manager Frank Blanco, District Director Bryant Powell, Assistant City Manager Hazel Randall, District Admin. Asst. Matt Busby, Asst. to the City Manager APPROVAL OF MINUTES OF JULY 7, 2009 )Mr. Dietz MOVED THAT THE MINUTES OF JULY 7, 2009, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 1 of 11 Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. MOTION FOR EXECUTIVE SESSION )Chairperson Insalaco announced they would not have an executive session this evening. 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 per the district counsel, the documents were not enough prepared to be discussed. There was general discussion on the continuance of the item.It was determined it be continued to the next meeting. Mr. Dietz MOVED THAT ITEM NUMBER 5 FOR THE AGREEMENT WITH DESERT COMMUNITIES AND STATE LAND DEPARTMENT BE CONTINUED TO THE NEXT AVAILABLE MEETING. District Clerk Kathleen Connelly stated they might want to continue it until such time it is prepared just in case it is not ready again. Mr. Dietz MOVED THAT ITEM NUMBER 5 FOR THE AGREEMENT WITH DESERT COMMUNITIES AND STATE LAND DEPARTMENT BE CONTINUED UNTIL SUCH TIME AS IT IS PREPARED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 2 of 11 The motion carried. DISCUSSION ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING JUNE 03, 2010 )District Finance Manager John White briefed the board on the item. Vice Chairperson Eck asked if the district would still be in the red at the end of the year. District Finance Manager John White stated at the end of this year they are projecting they will have a fund balance after taking into account all of our designated amounts for capital facilities and equipment replacement. Vice Chairperson Eck commented if the capital facilities were done we might be in the black. District Finance Manager John White stated that is correct.If we dipped into monies that we had set aside, we would be fine. Vice Chairperson Eck commented he liked the way they are doing it now with smaller increments annually rather than one larger increment.He knows of one local water company that went for a 21% rate hike.He does not feel that is the way to do it.He likes having a plan. He suggested they look at it the same way next year. DISCUSSION ON POTENTIAL INDEXING EFFECT ON CONNECTION FEES AND CONSTRUCTION COSTS FOR FY 2009- 2010 )District Finance Manager John White briefed the board on the item. Vice Chairperson Eck asked what the construction cost index is. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 3 of 11 District Finance Manager John White stated should the board decide to adopt that and amend the rate schedule, the figures are in the packet. Mr. Dietz commented if they increased it 3.3%, it would be an additional $110. District Finance Manager John White stated it would be on the smaller, residential meters. looking at $35.10, basically. White stated that is correct. would be for 7/08-07/09. Mr. Dietz stated they are District Finance Manager John Mr. Dietz commented that District Finance Manager John White stated it would be $110 increase on most of the residential and smaller meters, going from the second column, the actual rates for 2008-2009 to an amount under the indexed amount. bring them in line. White stated that is correct. be consistent with everyone else. Mr. Dietz asked if that would District Finance Manager John Mr. Dietz asked if they would District Finance Manager John White stated we are still behind Chandler and Gilbert, but ahead of Mesa. Vice Chairperson Eck asked who the group was that is giving him this information. District Finance Manager John White stated it is an index that is compiled by a group of Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 4 of 11 engineers that publish a magazine called the Engineering News Record. Vice Chairperson Eck commented it gets him that every water district/company is so different.He does not know how they can use a baseline from a group of engineers that created this to say how much you will increase your water.It seems to him they should be using their own formula. Mr. Dietz stated this is not water rates; it is the connection fees and one time fees. Vice Chairperson Eck commented he had been confused and now agreed with it. District Finance Manager John White stated it is a broad -based index, not unlike the Consumer Price Index. Vice Chairperson Eck commented he sees it now and it is a good idea.That is where the fright always is with the cities and state talking about the fees.It is good to have someone else know where they are at. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR BEGINNING JULY 1, 2009 AND ENDING JUNE 30, 2010 )District Director Frank Blanco briefed the board on the item. Vice Chairperson Eck commented they are doing some hiring.He asked if he is comfortable not hiring a person directly under him so that he can spend his time with the Arizona Department of Environmental Quality monitoring and everything.He could turn that field over to another individual.He asked if he is comfortable with what he has done for personnel this year. District Director Frank Blanco stated the plan that was submitted to human resources essentially does not have a position at the level between Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 5 of 11 himself and the field supervisor at this point.It is something they will consider for the next budget year.Currently he is relying on consultants to do a lot of the Arizona Department of Environmental Quality -related projects. Vice Chairperson Eck commented there are too many hats for him to wear.He asked how he could concentrate as some of these things are extremely high dollar areas that he has to concentrate on.He thinks he could use some help in that field.He thanked him for the conservative budget. Chairperson Insalaco 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. 2009-005, FINAL BUDGET ADOPTION )Mrs. Barker MOVED THAT RESOLUTION NO. 2009-005, 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, 2009, AND ENDING ON JUNE 30, 2010; DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) FOR FISCAL YEAR 2009-2010, BE APPROVED. Mr. Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2009-006, RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FY 2009-2010, INCLUDING NEW RATES FOR MONTHLY BASE SERVICE, CONSUMPTION, AND SYSTEM CONNECTION FEES Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 6 of 11 )Chairperson Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and opened the item to board discussion. Mr. Dietz asked if the 3.3% increase in connection fees and such reflect what they are going to be approving in Item No. 10. District Finance Manager John White stated that amount is not reflected as presented in the rate schedule.However, it is the board's discretion to amend the resolution in any manner. Mr. Dietz asked if they just add it at the end of the motion. District Finance Manager John White stated the motion template spells it out with an option at the end where it states "or be approved with the following amendments-. There was general discussion about the 3.3% being for the connection fees and other charges. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Dietz MOVED THAT RESOLUTION NO. 2009-006, 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 2009-2010, INCLUDING NEW RATES FOR MONTHLY BASE SERVICE, CONSUMPTION, AND SYSTEM CONNECTION FEES; AND ESTABLISHING AN EFFECTIVE DATE, BE APPROVED WITH THE FOLLOWING AMENDMENTS:THAT THE CONNECTION FEES BE INCREASED BY 3.3%, WHICH WOULD BE $110.He asked if that is what they are looking for. District Finance Manager John White stated the district clerk is the expert, but he thinks they would need to read the 8 items on the sheet line by line. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 7 of 11 District Clerk Kathleen Connelly commented all of the ones that they wish to change should be specified. There was general discussion as to what needed to be read. Mr. Dietz AMENDED HIS MOTION TO READ FOR THE RESIDENTIAL, AND THIS WOULD BE FOR CONNECTION FEES, THAT FOR RESIDENTIAL SINGLE FAMILY HOMES INCREASED TO $3,510, MULTI -FAMILY PER DWELLING UNIT $3,370, MANUFACTURED HOME/RECREATIONAL $3,300; NON-RESIDENTIAL 5/8" BY 3/4" WOULD BE $3,510, 3/4" $3,950, 1" $4,600, 1.5" $6,970, 2" $10,640, 3" $19,070, 4" WOULD BE $30,390, AND THE 6" AND 8" WOULD REMAIN THE SAME. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated the list of priorities for 2009-2010 includes the final budget adoption, which was just adopted.The master plan and capital improvement plan adoption will be brought back to the board for adoption.The capital improvement plan is based on the water master plan which is still in process.The interim development agreement with State Land and Desert Communities is in the final process of being brought back to the board.The agreement has to be submitted to the Arizona Department of Water Resources for our redesignation of assured water.They also need the Desert Communities Water Master Plan, which has been completed.The implementation of a water model is one of the first quarter priorities along with designing storage and booster upgrades at Baseline Road.In the second quarter comes the completion of the Mesa Interconnect, Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 8 of 11 the development of a strategy for implementation of a capital improvement plan, and drafting a final water development agreement for Desert Communities and State Land.The acquisition of land for a Central Arizona Project water plant is also on the list for that quarter.They are awaiting an appraisal for the parcel, and the design and master plan for the plant is contingent on the acquisition of land.The second quarter also includes the bid and construction of the storage and booster station at Baseline.They will begin to deliver Central Arizona Project water to customers in 2010.The completion of the storage and booster station at the reservoir on Baseline Road is slated for the third quarter.Contingent upon getting the land for the Central Arizona Project plant and beginning to do a master plan and design for that plant, they would begin selecting treatment options for Central Arizona Project water and begin to do a permitting process through Arizona Department of Environmental Quality.They will need to develop some renewable water resource options including additional Central Arizona Project water.It will be leased, long term water.They are looking at finalizing the development agreement the Desert Communities and State Land agreement in the third quarter.In the last quarter in 2010 they have distribution improvements, chemical feed upgrades, and bid and construction documents for the future water treatment plant. They will also review the existing Mesa and Superstition Mountains Community Facilities District agreements.They are looking at a legislative •change for approving financial capability for water community facilities districts. District Clerk Kathleen Connelly commented the legislative change he is looking for might be better in January through March.If he is looking for the 2010 legislature to act on that, they convene in January with a short window to introduce bills.If they wait until April, they will miss that window. Mrs. Barker commented they might want to pull it back even further so that they are talking to legislators in this quarter and laying the groundwork to get that introduced in January. District Clerk Kathleen Connelly recommended they find out what committee it has been assigned to. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 9 of 11 Vice Chairperson Eck commented the board will contact them if they need their help. District Director Frank Blanco stated they will work with the city manager's office to make sure they do this sooner.He gave a photo presentation on the Interconnect pipeline and the storage building.He advised there is about 800' left to go before the final connection. Mr. Dietz asked if the valves and piping will be painted once it is completed so that they blend in more with the desert. District Director Frank Blanco stated the wall will also be painted to match the existing wall.The final part of the security improvements at booster #1 is to install the pickets on top of the fence.They are around 7' high and are being installed by Old West Machinery. Vice Chairperson Eck asked what his estimate was of the total project. District Director Frank Blanco stated the installation of the iron is taking a week.There was a lot of work done in the shop with the actual building of the pickets.He gave an overview of the water system.They have collected the lead and copper sampling which required 30 samples from individual homes wherein the residents took the samples from their taps and turned them over to the district.All 30 residents were cooperative and all were in compliance and well below the federal action level.He advised the peak day demand was on July 29 at 2.045 million gallons, about 160 gallons per capita per day.It is relatively low compared to other cities that are in the 300's and 400's in the summer months.We have good conservation people in the district.Last year the peak demand day was July 2008 it was at 1.99 and 156 gallons per day, so it is still pretty close. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL REPORT None. Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 10 of 11 ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:38 p.m. ACCEPTED THIS 18TH 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 18TH DAY OF AUGUST 2009. ATTEST: Kathleen Connelly District Clerk l d A L 7 A1- 4 —Jy n S. Insalaco hairperson 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 4th day of August, 2009.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of August, 2009. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 4, 2009 Page 11 of 11