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Home My WebLink About2010-03-02 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING MARCH 2, 2010 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 March 2, 2010, 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. Douglas Coleman Mr. Jeff Serdy Mr. Chip Wilson Staff Present: Others Present: (Mr. Rick Dietz was absent.) George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director John White, District Finance Manager Kay Bigelow, District Legal Counsel Giao Pham, District Engineer Donna Meinerts, District Finance Dir. Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant Fred Baker, City Planning Manager APPROVAL OF MINUTES OF FEBRUARY 2, 2010 Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 1 of 7 )Mrs. Barker MOVED THAT THE MINUTES OF FEBRUARY 2, 2010, BE APPROVED, AND THAT ITEM NO. 4 BE DELETED AND ITEM NO. 5 BE MOVED TO FOLLOW ITEM NO. 11. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. FIRST AMENDMENT TO THE PROPERTY EXCHANGE AGREEMENT WITH PINAL COUNTY )District Legal Counsel Kay Bigelow briefed the board on the item.She stated an agreement was reached with Pinal County regarding the status of the land that they used for Ironwood Drive that the district had slated for the water treatment plant in December 2008.At that time, the district had thought it would either have the state land parcel or the Central Arizona Project parcel secured in twelve months.That has not worked out.State land took a horrendous appraisal, believed to be completed when Portalis was purchased, and stated they wanted that much money for it.Pinal County refused the appraisal as it was right when the economy went down plus it is next to the sewer plant.They just completed an appeal process and have a somewhat more reasonable amount.The process has not been finished.On the federal side, the Central Arizona Project portion went through 6 months of wondering if there was a pygmy owl on the site although none were seen. Everyone is looking at it again and they have different timelines.She believes they should be able to negotiate a price.Central Arizona Project is willing to do it at a price, not an auction.She believes that will happen in the next 6 months, but no later than 10 to 12 months.They were originally going to extend the agreement for 12 months, but the county wanted a longer extension in case these two agencies do what they have been doing.They have two options: give them 12 months and if nothing happens, they can extend it again but keep a shorter leash on the project; or you can give them 18 months so you do not have to keep hearing this so soon.The draft today extends it to December 17, 2010, but she can change the Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 2 of 7 month to extend it to whatever the board wants.The only critical problem she sees is if Arizona Department of Water Resources asks if they really have land to put the water treatment plant on.She would like to be able to say yes.She recommends they extend it to 12 months and extend it again later if needed. Mrs. Barker asked if this particular amendment and the motion that goes with it is for twelve months. District Legal Counsel Kay Bigelow stated that is correct.If they are going to extend beyond December 17, 2010, then they need to tell how many months to put in for the extension.They do not need to worry about where to put it in in the agreement.She will take care of that. Chairperson Insalaco asked if she thought 18 months is more realistic at this stage of the game. District Legal Counsel Kay Bigelow stated she felt it definitely should be done in 18 months; she thinks it probably could be done by December.They want the Central Arizona Project land, and that looks to be a little bit faster.She understands the county's point as they are having a horrendous time with State Land.They are harder to work with. Vice Chairperson Eck commented it seems to him that they should put a reasonably shorter goal and if they do not meet that, they can then pressure them to be closer to that goal.Maybe they do not meet the goal, but they come much closer to it. District Legal Counsel Kay Bigelow stated the pro is they have a little bit of a shorter leash.They have been working with State Land diligently.They have also not gotten a no, they are not going to sell this land. Chairperson Insalaco closed the discussion and called for a motion. Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 3 of 7 Mr. Coleman MOVED THAT THE FIRST AMENDMENT TO THE PROPERTY EXCHANGE AGREEMENT BETWEEN APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT AND PINAL COUNTY BE APPROVED AND THAT THE BOARD CHAIR OR VICE CHAIR BE AUTHORIZED TO SIGN THIS AGREEMENT, SUBJECT TO FINAL APPROVAL AS TO FORM BY DISTRICT LEGAL COUNSEL. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2010-001, ADOPTING A CAPITAL IMPROVEMENT PLAN )District Director Frank Blanco briefed the board on the item.He requested they approve the 5 year plan.The first presentation was in January, with follow-up in February.It addresses infrastructure improvements required for fire flows, storage capacities and being able to provide the pressures required.The current system does not accommodate future growth. Vice Chairperson Eck commented he was thinking of the future development of the system and its expansion.Frank and the consultant got him with their explanation of this being a way to save the current customers money.Without it, we would be basically out of compliance on many issues in the next 5 years, which would cost more money to get the system in compliance.That is what got it for him. Chairperson Insalaco commented the first time they met with them he was in the dark. District Director Frank Blanco stated there was a lot of information and a short period of time. Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 4 of 7 Chairperson Insalaco commented they were cleared up a lot when they had their private • meetings. Mrs. Barker commented she appreciated their taking the time to tutor her. Chairperson Insalaco closed the discussion and called for a motion. Vice Chairperson Eck MOVED THAT RESOLUTION NO. 2010-001, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), ADOPTING A CAPITAL IMPROVEMENT PLAN, BE APPROVED. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT District Finance Manager John White gave the board a brief financial status update. DISTRICT LEGAL COUNSEL REPORT None. MOTION FOR EXECUTIVE SESSION )Mrs. Barker MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M. ON TUESDAY, MARCH 2, Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 5 of 7 2010, 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. MOTION. VOTE:Unanimous. The motion carried. ADJOURNMENT adjourned the meeting at 6:20 p.m. Mr. Coleman SECONDED THE ) Chairperson Insalaco ACCEPTED THIS 20TH DAY OF APRIL , 2010, 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 20TH DAY OF APRIL 2010. ATTEST: Kathleen Connelly District Clerk n S. Insalaco airperson 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 Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 6 of 7 Utilities Community Facilities District of the City of Apache Junction, Arizona, held on the 2nd day of March, 2010.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of March, 2010. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of March 2, 2010 Page 7 of 7