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HomeMy WebLinkAbout2011-02-15 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING FEBRUARY 15, 2011 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 February 15, 2011, 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 Dietz Mrs. Robin Barker Mr. Douglas Coleman Mr. R.E. Eck Mr. Jeff Serdy Mr. Chip Wilson Staff Present:George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director John White, District Finance Manager Giao Pham, District Engineer Others Present:Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant APPROVAL OF MINUTES OF JANUARY 18, 2011 )Vice Chairperson Dietz MOVED THAT THE MINUTES OF JANUARY 18, 2011, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of February 15, 2011 Page 1 of 7 Mrs. Barker 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 District Manager George Hoffman stated he has had a communication indicating an interest in perhaps having fewer water board meetings.He will talk to the district director about that.They will use regular reporting to the board and request the district legal counsel provide legal updates.They will perhaps meet every other month or quarterly.With the current land acquisition in process, those things are timely and need might dictate some additional meetings. Vice Chairperson Dietz commented they had hardly been having them at all.Then the board wanted more _information on the district andthings they were not informed on enough, so they asked for more.meetings to bring them up to speed on other things.They are now a lot more informed than they were. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated they have 100% well capacity available.They have not been using Well #8.They are still in the process of determining if they need to rehabilitate the casing or what is required on that.They are awaiting another video and recommendation from the consultant.It appears the slots in the side of the side of the steel casing inside the hole are plugged up.They either need to do some chemical treatment or some other kind of treatment to open those perforations. Vice Chairperson Dietz asked how it got that way as it is so new.It:has hardly been used. Water Utilities Community Facilities District Meeting Minutes of February 15, 2011 Page 2 of 7 District Director Frank Blanco stated he is not really clear on that.It is speculation, but it could be the well was not properly developed when it was constructed.It should have been pumped out for a longer period of time to fully develop and get rid of the flying particles that were to be pumped out before the well was put into production. Vice Chairperson Dietz commented that now everything is clogged. District Director Frank Blanco stated that is correct.They are not certain on that; it is speculation.The reservoirs are functioning properly and are at 100% storage.The booster station is operational.They are receiving prices right now for replacement of pipes and motors for our site at Baseline.Salt River Project is offering a $200 rebate on new motors.They are hoping to purchase 2 new motors, replace the current one and have the second as a back up.They are also getting prices on new pumps for that site.Courtesy hang tags are delivered every Thursday and Tuesday.It amounts to about 100 hours per month, 24 hours of labor per week.This.is the third notice of late payment.The labor cost of $6,600 is significant.Printing costs are $1-,200 for a total cost of .$7,800 per year.The effect of no longer providing this service would be a reduction in customer service and more disconnects at the beginning.It would save $7,800 per year.It is his intention to make the administrative decision to discontinue this service unless .the board had concerns. Mt. Eck thought it was great He feels like they will be, training the customers.The ,majority of them will wait until they get that tag He believes the .hours are a little low -. When the City of Mesa ..did away withthe tags, in the long run they had less disconnects People started paying their bill and not waiting for the hang tag District Director Frank Blanco stated they will be notifying customers through their bills that it will be the last notice they will be receiving and they will no longer be getting hang tags. Water Utilities:Community Facilities District .Meeting Minutes_ofTebruary 15,,2011 Page 3 of 7 Vice Chairperson Dietz asked that they be sure to let them all know that they will not be receiving a notice.Once they receive it in their bill, that will be it. Mr. Serdy asked if there is an additional fee to turn the water back on. District Director Frank Blanco stated there is.There is a fee for disconnecting the water and one for reconnecting the water. Mr. Serdy commented instead of losing water they will actually make money. District Director Frank Blanco stated the water district will collect the disconnect fees.He is sure they will have additional disconnects initially, but he agrees with Mr. Eck in that eventually they will start paying their bills on time and not get disconnected. Mrs. Barker stated they will also have a notice on the last hang tag that they put on the door that this will be the last hang tag they will receive. District Director Frank Blanco stated that is correct.The last hang tag that they actually put on the door will have a notice that this will be the last time they receive a notice such as this.The water production costs for 2007 were 96 cents per thousand gallons.It peaked in 2008 and 2009 because of additional needs to run wells and chemical costs.In 2010 we reduced the amount of well pumpage and increased the surface water, going from 21% in 2007 to 46% in 2010.The goal is to increase the percentage in 2011 and further reduce the cost. Electrical costs have a direct relationship on the cost of water. Mr. Eck asked if he had received any calls on what they had done with the water.The surface water is not as hard as the well water. District Director Frank Blanco stated he does not believe they have received any calls.Bryant has commented on it. Water Utilities Community Facilities District Meeting Minutes of February 15, 2011 Page 4 of 7 Assistant City Manager Bryant Powell stated it tastes better and is cooler. District Clerk Kathleen Connelly stated the evaporative coolers do not calcify as much. District Director Frank Blanco stated he is sure they will start noticing once they start using more of the surface water.The cost per thousand in 2010 was 89 cents.The goal was $1.00, so he thinks they did pretty good.In 2009 it was $1.27.He received a phone call yesterday from the Bureau of Reclamation. They have received the sales plan.It has been approved internally and they are getting signatures.Local approval signatures are what are missing.Once that is finalized, it will be shipped out to the General Services Administration. They have locally recommended approval of the plan.The next step will be the plan going to General Services Administration, which will then forward a letter to the water district which will include a proposal to purchase.It will have a breakdown of the costs they are expecting to receive for the land.The district will then meet with Pinal County to begin the negotiations process.The basis for the appraisal is on privately -owned properties that have been sold in the last 6 to 9 months. DISTRICT TREASURER REPORT None. MOTION FOR EXECUTIVE SESSION )Mrs. Barker MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M. ON TUESDAY, FEBRUARY 15, 2011, 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 (7) AND AS FURTHER OUTLINED ON THIS AGENDA. Vice Chairperson Dietz SECONDED THE MOTION. VOTE:Unanimous. Water Utilities Community Facilities District Meeting Minutes of February 15, 2011 Page 5 of 7 The motion carried. Chairperson Insalaco adjourned the meeting for the executive session. Chairperson Insalaco reconvened the meeting following the executive session. RESOLUTION NO. 2011-002, AUTHORIZING ACQUISITION OF EXCESS PROPERTY FROM FEDERAL GENERAL SERVICES ADMINISTRATION AND AUTHORIZING AN OFFER TO GENERAL SERVICES ADMINISTRATION FOR THE CENTRAL ARIZONA PROJECT EXCESS PARCEL FROM FEDERAL GENERAL SERVICES ADMINISTRATION )Chairperson Insalaco called for a motion. Mrs. Barker MOVED THAT WE CONTINUE ITEM 5 TO A FUTURE DATE. Mr. Eck SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT LEGAL COUNSEL REPORT District Legal Counsel Kay Bigelow stated she will be having a meeting with the Bureau of Indian Affairs and the Bureau of Reclamation on what the process will be and will hold off any information until after that meeting. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:42 p.m. ACCEPTED THIS 19TH DAY OF APRIL , 2011, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES Water Utilities Community Facilities District Meeting Minutes of February 15, 2011 Page 6 of 7 COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY), CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 2011. ATTEST: Kathleen.Connelly District. Clerk 19TH DAY OF APRIL hn S. Insalaco Chairperson WATER-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 15th day of February, 2011.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 16th day of February, 2011. Kathleen Connelly - District Clerk Water Utilities Community Facilities District - Meeting Minutes of February 15, 2011 Page 7 of 7