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HomeMy WebLinkAbout2009-11-17 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING NOVEMBER 17, 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 November 17, 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 R.E. Eck Mrs. Robin Barker Mr. Doug Coleman Mr. Rick Dietz Mr. Jeff Serdy Mr. Chip Wilson Staff Present:George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director Donna Meinerts, District Finance Dir. John White, District Finance Manager Kay Bigelow, District Legal Counsel David Fern, Utility Director Others Present:Bryant Powell, Assistant City Manager APPROVAL OF MINUTES OF NOVEMBER 3, 2009 ) )Mr. Dietz MOVED THAT THE MINUTES OF NOVEMBER 3, 2009, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 1 of 8 Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous.(6-0 as Mr. Serdy had stepped out just prior to the vote. The motion carried. EXECUTIVE SESSION ) )Chairperson Insalaco stated Item No. 4 will be postponed as it is not ready and they will be moving Item No. 5 to the end of the meeting.He called for a motion. Mrs. Barker MOVED THAT ITEM NO. 5 BE MOVED TO FOLLOW THE DISTRICT LEGAL COUNSEL REPORT. Mr. Dietz SECONDED THE MOTION. VOTE:Unanimous. WATER INFRASTRUCTURE FINANCE AUTHORITY LOAN AGREEMENT NUMBER 920133-08 CHANGES IN PROJECT SCOPE PER EXHIBIT B, SECTION 5.1 ) )District Director Frank Blanco stated this is an opportunity to request a scope change. It is related to the interconnect project, which came in lower than what was anticipated.It is projected to be $3 million below the estimate by the time it is complete.The project consisted of a booster station at Signal Butte and Baseline with about 20,000 linear feet of 16" line that connected to the 1 million gallon storage tank at Baseline.It is in very poor condition and needs to be upgraded.It is a critical storage facility; it is where all the storage goes to for moving water north of Baseline into the immediate area.They are asking to expand the project to include the construction of an additional storage facility there, rehabilitate the existing one, and do some booster station upgrades.This was included at earlier meetings and at the budget presentation.He requested they be Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 2 of 8 allowed to write a letter to the Water Infrastructure Finance Authority requesting an expansion of the scope. Vice Chairperson Eck asked if this would limit the current use of the City of Mesa water. District Director Frank Blanco stated the interconnect will come back on the week after Thanksgiving. Vice Chairperson Eck asked if these tanks would be affected by the use of that.He wanted assurance they will still be able to use as much water as they need. District Director Frank Blanco stated they will still be able to use the water, but they risk the tank failing.They cannot take it out of service to repair because there is no additional storage in that part of the city. Vice Chairperson Eck asked what kind of time frame there is to get this expansion of the scope done. District Director Frank Blanco stated he checked with the Water Infrastructure Finance Authority and was told it essentially just takes a letter from us requesting that we allow him to expand the scope of work.He anticipates no more than a month in getting a response. Vice Chairperson Eck commented it is a very important item so he is curious on how long it would take. Mr. Dietz asked how soon a million gallon tank could be completed so that they could shut down the other one to do the repairs on it. District Director Frank, Blanco stated there are a couple of options on constructing the other tank.They could do a change order to the existing Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 3 of 8 project, which might save us some time but cost us more money. We would be paying the contractor an additional 15% on top of what was required to build the tank.It could be close to 50% of the total project, which would not be a wise thing to do.He does not know if it is allowable per NAG. Utility Director David Fern stated typically on a big change order request they would want to consider rebidding the project.He believes if they try to change order it they could lose 15% of the value that they would be achieving.With the current competitive bid environment, if they rebid the project, they will get some competitive bids more so than if they change ordered the project and negotiated it. Mr. Dietz commented if they went out to bid it would just take them a little bit longer to get the project done. Utility Director David Fern stated that is correct.He is not sure what the constraints are with the Water Infrastructure Finance Authority, but they get a lot of value for the dollar by going out to bid. District Director Frank Blanco asked if they are looking at three months if they go out to bid. Utility Director David Fern stated engineering is setting up meetings now with a couple of different vendors.Since they have the problem with the current steel storage tank, they are looking at going with a pre- stressed or a post tension type of concrete storage tank.They will get good life out of it.They have enough money left to get a high quality, long duration storage tank that will help out with the redundancy for needed repairs. Mr. Dietz asked for an estimated completion date. Utility Director David Fern estimated with the design and construction it would be done Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 4 of 8 within a year.If time is an issue, they can put it in the contract to expedite the construction. Mr. Dietz commented he is worried about the tank that is there now in case it fails. District Director Frank Blanco stated there could be an engineering solution to that where they would bypass the tank and take water directly from the interconnect if that were to happen.They would have less storage, but with the interconnect in place they would have the ability of taking up to 3,000,000 to 5,000,000 gallons per day which is more than they are using currently. Mr. Dietz asked if they think they can get a better price on the repairs that need to be done on the existing by including that when they go out for bid on the new one. District Director Frank Blanco stated that is correct.The intent would be to go with the whole project and get everything done at one time and get a better price. Chairperson Insalaco stated it would be a new bid to complete everything. District Director Frank Blanco stated that is correct.There were a couple of options as well, whether to go with a design bid or the CM at risk options.They are looking at the most effective and shortest period of time frame for those. Utility Director David Fern stated the alternative in the bid process is you can get it done a little bit quicker but you pay a little bit more. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Dietz MOVED THAT A REQUEST TO THE WATER INFRASTRUCTURE FINANCE AUTHORITY REGARDING Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 5 of 8 CHANGES IN THE PROJECT SCOPE, LOAN AGREEMENT NUMBER 920133-08 PER EXHIBIT B 5.1, TO INCLUDE ADDITIONAL STORAGE TANK, REHABILITATION OF EXISTING TANK, AND BOOSTER PUMP MODIFICATIONS AT THE BASELINE AVENUE CONNECTION OF THE MESA INTERCONNECT, BE APPROVED. Mrs. Barker 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. EXECUTIVE SESSION called for a motion. ) )Chairperson Insalaco Mrs. Barker MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6 P.M. ON TUESDAY, NOVEMBER 17, 2009 IN THE CITY COUNCIL CONFERENCE ROOM FOR THE PURPOSE OF CONSULTATION FOR LEGAL ADVICE WITH THE DISTRICT'S ATTORNEY IN ACCORDANCE WITH A.R.S. 38-431.03(A)(3)AND (4) AS FURTHER OUTLINED ON THIS AGENDA. Mr. Wilson SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 6 of 8 VOTE:Unanimous. The motion carried. ADJOURNMENT adjourned the meeting at 6:10 p.m. ) Chairperson Insalaco ACCEPTED THIS 15TH DAY OF DECEMBER , 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 15TH DAY OF DECEMBER 2009. J9in S. Irisalaco Chairperson ATTEST: llyKathleen 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 17th day of November, 2009.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19th day of November, 2009. Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 7 of 8 Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 17, 2009 Page 8 of 8