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Home My WebLink About2010-12-07 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING DECEMBER 7, 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 December 7, 2010, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER (There was a tape failure at the beginning of this meeting.) Chairperson Insalaco called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Insalaco Vice Chairperson Dietz Mrs. Robin Barker Mr. Douglas Coleman Mr. R.E. Eck Mr. Jeff Serdy Mr. Chip Wilson (telephonically) Staff Present: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 David Fern, Utility Director Donna Meinerts, District Finance Dir. Others Present:Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant APPROVAL OF MINUTES OF NOVEMBER 16, Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 1 of 7 2010 )Vice Chairperson Dietz MOVED THAT THE MINUTES OF NOVEMBER 16, 2010, BE APPROVED. Mr. Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Chairperson Insalaco stated they would move to Item 6 at this time and come back to Items 4 and 5. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated that for the water system update there was a power failure at Signal Butte Station but the back-up system took over.There were no problems as a result. For the water quality model, they are continuing to monitor the system to meet state and federal water quality standards.(At this point the tape is now recording.) Mr. Eck asked if they have done testing since they have tied in. District Director Frank Blanco stated they have and they got a value of above 70, whereas before they were down below 10.They want to make sure they balance it and get the residual as low as possible.There was a meeting today for additional developed and delivered Central Arizona Project water.It is a program they currently have called Add Water.It is using the water that is not being utilized by other providers such as our water that we are not using that we could use.They want to gather that volume of water and sell it on the spot market to others that may need it.The study is not finalized and there are lots of questions, including who is entitled to the water and how they will pay for it.These meetings have been going on for 2 years.There are no operational restrictions on Central Arizona Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 2 of 7 Project water and there is no scheduled maintenance.There are no cutbacks or supply restrictions on the amount of water to be delivered this year.He gave a history on the Bureau of Reclamation surplus property, starting at the end of 2007.They are well over the estimated 18 months they were given in 2008. Vice Chairperson Dietz stated they were given an estimate of 18 months in 2007. District Director Frank Blanco stated it was 18 months from July of 2008. Vice Chairperson Dietz commented they were originally talking about it in 2007. District Director Frank Blanco stated the process did not start until they were given a deposit.It still took Central Arizona Project surplusing the property and then going through the process at the federal level.It has been a time-consuming procedure.It has been hurry up and wait.He continued with the history.He drafted a letter to General Services Administration today again asking for a direct negotiated sale based on the recommendation made by the Bureau of Reclamation. Vice Chairperson Dietz asked for the reason why the district took this over instead of having Pinal County do it. District Director Frank Blanco stated the district had made the original contact with Central Arizona Project and met with Mr. Fitzgerald.They met with him because of the interconnect crossing the Central Arizona Project Canal and to determine the feasibility of the district requesting they surplus this parcel for the district to build a water treatment plant on. Vice Chairperson Dietz commented that was not'part of what Pinal County was supposed to be doing. District Director Frank Blanco stated that is correct.Pinal County was required to obtain the State Land Department parcel and the district was required to follow up on the Central Arizona Project parcel which the district had initiated in terms of meeting with them and talking to them on surplus land. Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 3 of 7 Mr. Eck commented what he had to go through was horrendous.He asked what percentage of the system is using Central Arizona Project water. District Director Frank Blanco stated they are running wells two times a week, on Wednesdays and part of the day on Saturdays and part of the day on Sundays.They are getting about 90% Central Arizona Project water versus 10% groundwater right now. Mr. Eck asked if they have gotten compliments or complaints on the water. District Director Frank Blanco stated there has not been any noticeable difference in the water. Mr. Eck commented that surprises him.He would think they would have been getting compliments. District Clerk Kathleen Connelly stated it is colder. District Director Frank Blanco stated it is definitely colder, 100 degrees versus 78 degrees. Mr. Eck commented he was just curious.They had waited forever to tie into this and it is half of what Well #6 was. District Director Frank Blanco stated one of the fears other cities have had is of getting a whole bunch of yellow water or something weird like what happened in Tucson.They slowly blended the water so that would not see any drastic changes.If they had seen some, they would have backed off.However, they did not have any issues with bringing in the new source. Mr. Eck commented he is just really happy, as he can obviously tell, to get that source.With that helping everything, he was hoping the customers would realize this water is not so hard and does not have all the solids that could be seen earlier. District Director Frank Blanco stated they are happy to not get any complaints. Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 4 of 7 Mr. Eck commented if it keeps them from getting complaints, then that is great. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL REPORT None. MOTION FOR EXECUTIVE SESSION )Vice Chairperson Dietz MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M. ON TUESDAY, DECEMBER 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)(4) AND AS FURTHER OUTLINED ON THIS AGENDA. Mr. Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Chairperson Insalaco reconvened the meeting following the executive session. SECOND AMENDMENT TO THE PROPERTY EXCHANGE AGREEMENT BETWEEN THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT AND PINAL COUNTY )Chairperson Insalaco called for a motion. Mrs. Barker MOVED THAT THE PROPOSED SECOND 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 AMENDMENT SUBJECT TO FINAL APPROVAL AS TO FORM BY THE DISTRICT LEGAL COUNSEL. Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 5 of 7 Vice Chairperson Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:55 p.m. ACCEPTED THIS 18TH DAY OF BY THE CHAIRPERSON AND DISTRICT BOARD COMMUNITY FACILITIES DISTRICT (APACHE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 2011. 18TH JANUARY , 2011, OF THE WATER UTILITIES JUNCTION WATER COMPANY), ‘71ohn S. Insalaco Chairperson DAY OF JANUARY ATTEST: Kathleen Connelly District Clerk is1,14A-Le 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 December, 2010.I Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 6 of 7 further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of December, 2010. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of December 7, 2010 Page 7 of 7