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HomeMy WebLinkAbout2010-07-06 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JULY 6, 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 July 6, 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 Mr. Rick Dietz Mr. Jeff Serdy Mr. Chip Wilson Staff Present: (Mrs. Barker and Mr. Coleman were absent.Mr. Coleman was at the Florence Town Council meeting.) George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director John White, District Finance Manager Kay Bigelow, District Legal Counsel David Fern, Utility Director Donna Meinerts, District Finance Dir. Giao Pham, District Engineer Others Present:Hazel Randall, Administrative Assistant APPROVAL OF MINUTES OF JUNE 15, 2010 Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 1 of 14 )Mr. Dietz MOVED THAT THE MINUTES OF JUNE 15, 2010, BE APPROVED. Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2010-2011 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FISCAL YEAR 2010-2011, CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES AND DISCUSSION ON DATE, TIME AND LOCATION FOR PROPOSED FINAL BUDGET ) )District Finance Manager John White briefed the board on the item.He stated the funding source for acquiring additional water, if it is needed, has been moved into the capital facilities fees.Staff is recommending a 3% rate increase on most basic services and consumption rates, and a 3.5% increase in capital facilities fees.They consider that the maximum defensible rate. Vice Chairperson Eck commented they are still indecisive about the $250,000 increase. This is the first they have actually talked about it as a group. District Finance Manager John White stated that is correct.Staff put that in there to allow them to expend the money should the board give staff direction to do so later.There has not been any plan, encumbrance or contract to do so.It is comparable to what the city has done in some of the line items of the budget for growth opportunities in prior years. Vice Chairperson Eck asked if the $250,000 strictly gives them water; it is not for mechanical parts or anything like that. Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 2 of 14 District Finance Manager John White stated it is for exploring the option of increasing our water sources or water rights. Mr. Dietz commented it would be for things like if an Indian community would be able to lease us some water in the future. District Finance Manager John White stated that is a good example. Vice Chairperson Eck asked if they would still have the water to supply Portalis, if it should open, without that money. District Finance Manager John White commented he believes the present allotment of Central Arizona Project would be sufficient to build the first phase of it. Mr. Dietz commented it should help build the first thousand acres. Vice Chairperson Eck commented he is concerned about the cost and getting to a point where they might be purchasing too much water.He asked if the $250,000 would be an annual thing or if it lasts for a certain time period. Mr. Dietz commented it is like the same thing when they set aside $250,000 for planning south of the freeway for about 6 or 7 budget years in a row. They never used it but it was there in case the opportunity arose. District Manager George Hoffman stated that is correct.If the need were to present itself, then they would have some money in this budget to address it.Whether they want to pursue any potential resources is a policy decision and probably something they would do in consultation with their legal counsel subsequent to tonight. Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 3 of 14 District Legal Counsel Kay Bigelow stated they were talking about giving the Indian community a counteroffer and asking for a 5 year option.The $250,000 was the option amount to be applied to the purchase amount, if they took the water.If they do not take the water, it would be gone and the lease would be gone.This was to delay the year one lease and delay the obligation to take the water until the market somewhat returns.They would have an idea of a normal growth path.The market was not normal when it was booming.Now it is slumped very much.They were looking at that as an option price so there would not be annual costs along with that until they actually pulled down the lease and got into the meat of the lease. Vice Chairperson Eck asked if they would have to send any more money in the future if they did this.The $250,000 would last us indefinitely. District Legal Counsel Kay Bigelow stated it would not last indefinitely.It would be the option.It would buy them some time to decide whether or not they would want to exercise the option and become part of that lease.It is the price they are paying to delay making the decision about how much water they want and whether or not they actually want to become obligated.Once they get into the lease, the price is much more than that.They would be looking at using up most of the $3 million they have in their rainy day fund and then having an annual cost over and above that depending on how many years they could stretch the payments for the lease.All of those details are not something they have to worry that they are agreeing to tonight.It is simply put into the budget in case they tell them to go to the Indian community and make an offer, they would accept it, and they would know all the details about what it would cost in the future and how they would become obligated for that. Vice Chairperson Eck commented that right now they are just gathering information. District Legal Counsel Kay Bigelow stated that is correct.It is anticipated they will have an executive session on August 3. Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 4 of 14 Vice Chairperson Eck commented he is very skeptical.He was watching something Sunday morning where they had 3 or 4 real estate specialists on and they were saying this is no short time fix.They are looking at 5 to 7 years until it starts coming back up. District Legal Counsel Kay Bigelow stated there is a large stock of homes that do not have people in them or have renters in them.Those have to be absorbed before the market returns to normal.That depends on people moving in and having jobs. Vice Chairperson Eck commented jobs are a huge issue. District Finance Manager John White stated there was a great deal of uncertainty in drafting this budget, especially with respect to this item.Staff made its best estimate in keeping the options open and trying to allow some flexibility by putting this in.It is nothing to which they are committed.With respect to our treatment options, they included a figure of $130,000 but that is not tied to any one specific course of action.The budget is one form of policy document.There are policy decisions that are outside the scope of budget discussions.They will be looked at in more detail as the fiscal year goes on. Vice Chairperson Eck asked if they are using the tie in yet. District Finance Manager John White stated we are using the Mesa interconnect.He does not know to what extent they are taking deliveries, but they are taking deliveries throughout the week.They are alternating back to the well water on Fridays and Saturdays.He does not think they are taking as much as they would like.It has been on in one form or another since January. Mr. Dietz commented on page 2, they have Plant 2, page 2, line 38, G, Construction, Contracting and Other Improvements.Number 2 is $160,000 that has been added for a Broadway line replacement and expansion, to Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 5 of 14 be funded equally from capital facilities and capital replacement, bringing the total from $1.145 to $1.497 million. He asked if the Broadway lines were replaced when we expanded and redid Broadway 4 or 5 years ago. District Director Frank Blanco stated there is a 12" line that runs east towards Central Arizona College.The line ends at Idaho Road.This line is in conjunction with the college expansion. Mr. Dietz commented this will be from Idaho to Winchester. District Director Frank Blanco stated that is correct.It is currently a 6" line and it needs to be a 12" line to serve the college.He hopes to get the college to participate in part of the cost. Mr. Dietz commented he would hate to have to go in and tear up that road after they spent a lot of money fixing it up. District Manager George Hoffman asked if he had talked about a recommendation for time off for employees. District Director Frank Blanco stated he did not. Mr. Dietz commented that is Item No. 8 on the agenda. Chairperson Insalaco closed the discussion with no further comments and moved on to the next item. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2010-2011 ) )Chairperson Insalaco opened the public hearing on the item.There being no one Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 6 of 14 wishing to speak, he closed the public hearing and moved on to the next item. RESOLUTION NO. 2010-003, ADOPTING A PROPOSED BUDGET FOR FISCAL YEAR BEGINNING JULY 1, 2010 AND ENDING JUNE 30, 2011; ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR FISCAL YEAR BEGINNING JULY 1, 2010 AND ENDING JUNE 30, 2011; ESTABLISHING A PUBLIC HEARING AND DESIGNATING DATE, TIME AND LOCATION FOR PUBLIC HEARING FOR FINAL BUDGET ADOPTION )Chairperson Insalaco called for a motion. Mr. Dietz MOVED THAT RESOLUTION NO. 2010-003, 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, 2010 AND ENDING JUNE 30, 2011; ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2010 AND ENDING JUNE 30, 2011; 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. I FURTHER MOVE THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON AUGUST 3, 2010 AT 6:00 P.M. IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, 300 EAST SUPERSTITION BOULEVARD, APACHE JUNCTION, ARIZONA. Vice Chairperson Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2010-004, DECLARING AS PUBLIC RECORD AND ADOPTING Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 7 of 14 CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN FOR FISCAL YEAR 2010-2011" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2010-2011" )District Manager George Hoffman stated they are just readopting the classification and compensation plan. Chairperson Insalaco commented as they are doing for the rest of the city. District Manager George Hoffman stated that is correct. Chairperson Insalaco opened the item to board discussion. District Manager George Hoffman asked if there are any changes that should be highlighted. District Director Frank Blanco stated they added one new position this year, the maintenance utility worker I.They are trying to build a career path for worker I.They will come to them next year for the worker II position.During the probationary period this worker will have the opportunity to gain certifications and become qualified to move on to the next position.They currently have three worker I positions.One is a meter reader, one is a customer service representative and the third is kind of a laborer. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Dietz MOVED THAT RESOLUTION NO. 2010-004, A RESOLUTION OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) DECLARING AS A PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 8 of 14 FOR FISCAL YEAR 2010-2011" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2010-2011" BE APPROVED. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND DIRECTION ON PROPOSED TEMPORARY LEAVE FOR WATER DISTRICT EMPLOYEES FOR FISCAL YEAR 2010-2011 )District Manager George Hoffman briefed the board on the item.As they know, the district is fiscally constrained.We have limited ability to provide employees additional compensation.He thinks it is the case where most of the employees have literally gone backwards in terms of their take home pay.He is offering that they provide 40 hours of paid time off.It is not something they can pay their mortgage with, but it is something that could be provided to them.For many, he thinks it will be a meaningful benefit.The draft motion is blank so the actual hours they put in is up to them. Mr. Dietz commented he thinks it is the least we can do. Vice Chairperson Eck commented this is an annual thing. Chairperson Insalaco commented they are doing it for this year. District Manager George Hoffman stated it would be for this year only.They must use it or lose it.The hours expire June 30, 2011. Vice Chairperson Eck commented he wanted to make sure that they are aware of that so it is not expected each year, and then all of a sudden they get Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 9 of 14 nothing or a 2.5% raise and the 40 hours goes away and there is anger.He hopes they realize that this year they get that 40 hours, or extra week.He asked how much an extra week would cost. District Manager George Hoffman stated the out-of-pocket cost is negligible.They could run into scenarios where employees are at their maximum vacation leave balance, so they take a little more vacation time.In some aspects of the district's counterpart, the city, if employees were to take more vacation time, such as in the police department, could trigger the use of overtime to cover the vacation time for the people that are gone.There is no actual, appreciable, out-of-pocket costs to do this.It is just people getting to take some time off and it does not count against the accrued vacation balance. Vice Chairperson Eck commented it would be extremely difficult to figure out what dollars this would cost. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Dietz MOVED THAT WE APPROVE 40 HOURS OF TEMPORARY PERSONAL LEAVE FOR WATER DISTRICT EMPLOYEES FOR FISCAL YEAR 2010-2011 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 OR CAUSE AN EMPLOYEE TO BE PAID FOR OVER 40 HOURS IN THE WORK WEEK; IT WILL ONLY BE AVAILABLE FOR USE BEGINNING JULY 18, 2010 AND UP TO AND INCLUDING JUNE 30, 2011; THERE WILL BE NO CARRYOVER OF THIS LEAVE BEYOND JUNE 30, 2011; PRIOR TO TAKING THIS LEAVE, AN EMPLOYEE SHALL OBTAIN APPROVAL FROM HIS/HER DEPARTMENT DIRECTOR; IT SHALL BE EXTENDED TO NON-EXEMPT AND EXEMPT WATER DISTRICT EMPLOYEES WHO REGULARLY WORK 24 OR MORE HOURS PER WEEK; FOR EVERY EIGHT (8) HOURS OF TEMPORARY PERSONAL LEAVE PROVIDED TO FULL TIME EMPLOYEES WHO REGULARLY WORK BETWEEN 32 AND 40 HOURS PER WEEK, THE AMOUNT OF FIVE (5) HOURS OF TEMPORARY PERSONAL LEAVE SHALL BE PROVIDED TO PART TIME EMPLOYEES WHO REGULARLY WORK BETWEEN 24 AND 31 HOURS PER WEEK; Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 10 of 14 IT SHALL BE EXTENDED TO ONLY THOSE EMPLOYEES WHO ARE AN EMPLOYEE OF RECORD ON OR BEFORE JULY 1, 2010; IT SHALL NOT BE INCLUDED IN ANY PAY OUT PROVISIONS. I FURTHER MOVE THAT THE DISTRICT MANAGER IS AUTHORIZED TO MAKE FINAL ADMINISTRATIVE ADJUSTMENTS TO THESE TERMS. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. LAND USE LICENSE FOR APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FILLING STATION ) )District Director Frank Blanco briefed the board on the item.He stated this is the Central Arizona Project Fill Station that will take water directly out of the Central Arizona Project Canal.It will be used for construction, dust control and drinking water.They will be able to take water directly out of the canal for large tanker trucks and for commercial and construction uses.It will be at Baseline Avenue and the canal.The fill station has already been constructed.It has been there for 2 or 3 years. The stand was located there in conjunction with the Ironwood bridge construction.The stand was relocated to the Baseline site. Mr. Dietz asked if this is the location where they had to temporarily pull water out of the Central Arizona Project Canal. District Director Frank Blanco asked if he meant the filtration plant. Mr. Dietz stated that is correct.It was a few years ago when they had to set up a temporary plant. Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 11 of 14 District Director Frank Blanco stated this is located in the same general area where the plant was brought in.It had to be relocated due to the bridge realignment.It was moved from where the plant was to this area north of Baseline right next to the Central Arizona Project Canal.He asked Kay if she had anything to add. District Legal Counsel Kay Bigelow stated this dots the i's and crosses the t's because they had to get permission from Central Arizona Water Conservation District and Central Arizona Project to cross their property. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Dietz MOVED THAT THE LAND USE LICENSE FOR APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FILLING STATION (J STAND), BASELINE ROAD, PINAL COUNTY, ARIZONA 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. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco thanked the board for their consideration on the temporary leave.It will be very well accepted by the water district employees and he will communicate the implications of this. DISTRICT TREASURER REPORT Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 12 of 14 None. DISTRICT LEGAL COUNSEL REPORT None. ADJOURNMENT adjourned the meeting at 6:32 p.m. ) Chairperson Insalaco ACCEPTED THIS 3RD DAY OF AUGUST , 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 3RD DAY OF AUGUST 2010. (j9An S. Insalaco nairperson 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 6th day of July, 2010.I further certify that the meeting was duly called and held and that a quorum was present. Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 13 of 14 Dated this 9th day of July, 2010. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of July 6, 2010 Page 14 of 14