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Home My WebLink About2011-04-19 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING APRIL 19, 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 April 19, 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. Jeff Serdy Mr. Clark Smithson 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 Donna Meinerts, District Finance Director Kay Bigelow, District Legal Counsel Others Present:Bryant Powell, Assistant City Manager APPROVAL OF MINUTES OF FEBRUARY 15, 2011 )Vice Chairperson Dietz MOVED THAT THE MINUTES OF FEBRUARY 15, 2011, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 1 of 8 Mrs. Barker SECONDED THE MOTION. VOTE:6-0-1 (Mr. Smithson abstained.) The motion carried. EXECUTIVE SESSION FOR DISCUSSION, DIRECTION AND/OR LEGAL ADVICE ON AGREEMENT WITH FEDERAL GENERAL SERVICES AGENCY FOR DISTRICT'S ALTERNATIVE SITE FOR WATER TREATMENT PLANT; REQUIREMENT FOR PAYMENT OF $35,000 TO BUREAU OF RECLAMATION AS DEPOSIT FOR ENVIRONMENTAL ASSESSMENT IN CONNECTION TO FEDERAL GOVERNMENT'S APPROVAL OF GILA RIVER INDIAN COMMUNITY - DISTRICT'S OPTION AND LEASE AGREEMENT FOR CENTRAL ARIZONA PROJECT WATER Chairperson Insalaco called for a motion. Vice Chairperson Dietz MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M. ON TUESDAY, APRIL 19, 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. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Chairperson Insalaco adjourned the meeting to move to the executive session. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 2 of 8 Chairperson Insalaco reconvened the meeting. 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. Vice Chairperson Dietz MOVED THAT RESOLUTION NO. 2011-002, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) AUTHORING ACQUISITION OF EXCESS PROPERTY FROM FEDERAL GENERAL SERVICES ADMINISTRATION (GSA) AND AUTHORIZING AN OFFER TO GSA FOR CENTRAL ARIZONA PROJECT (CAP) EXCESS PARCEL FROM FEDERAL GSA BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PAYMENT OF $35,000 TO BUREAU OF RECLAMATION AS DEPOSIT FOR ENVIRONMENTAL ASSESSMENT IN CONNECTION TO FEDERAL GOVERNMENT'S APPROVAL OF GILA RIVER INDIAN COMMUNITY - DISTRICT'S OPTION AND LEASE AGREEMENT FOR CENTRAL ARIZONA PROJECT WATER )Chairperson Insalaco called for a motion. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 3 of 8 Mrs. Barker MOVED THAT PAYMENT OF $35,000 TO BUREAU OF RECLAMATION AS DEPOSIT FOR ENVIRONMENTAL ASSESSMENT IN CONNECTION TO FEDERAL GOVERNMENT'S APPROVAL OF GILA RIVER INDIAN COMMUNITY - DISTRICT'S OPTION AND LEASE AGREEMENT FOR CENTRAL ARIZONA PROJECT (CAP) WATER BE APPROVED. Mr. Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. APPROVAL TO AWARD PURCHASE OF TWO REPLACEMENT PUMPS AND TWO REPLACEMENT MOTORS FOR BOOSTER STATION #2 TO LOWEST BIDDER, PUMP SYSTEMS, INC. )District Director Frank Blanco briefed the board on the item.He stated they are for the booster station at Baseline.They purchased two premium efficiency motors for that site.They are qualified for $200 rebates each from Salt River Project.They are in the process of purchasing two higher efficiency pumps for that site as well. This is for the purchase of the pumps, motors and having the installation performed for the total amount of $35,000. Mrs. Barker commented we get a $200 rebate. District Director Frank Blanco stated we do for the motors. Mrs. Barker asked if that would be about the freight charge. District Director Frank Blanco stated probably so. Mrs. Barker stated we would then have free shipping.She thought that was good. a $200 rebate.. Blanco stated we:do for the motors. would be about the:freight charge. Blanco stated probably so. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 4 of 8 Mr. Serdy asked if these are replacement pumps. Vice Chairperson Dietz commented $400 is $400. District Director Frank Blanco stated these are replacing existing pumps. Mr. Serdy asked what will happen to the pumps that are being replaced.He asked if they have value. District Director Frank Blanco stated they have been in service for 15 years.They are in pretty bad shape.The intent is to replace them before they actually fail.They are currently leaking.There might be some value in the scrap metal and the motors.Otherwise, they cannot be used.They did consider rebuilding the pumps and motors and keeping them on the shelf as a backup.Unfortunately, they are not interchangeable with the new equipment going in. Essentially, they will be scrapping the old metal. Mr. Serdy asked if they would bring anything at auction. District Director Frank Bianco stated they could consider doing that.They had not thought of doing that.He will work with public works on doing that. Chairperson Insalaca closed the discussion and called for a motion. Mrs. Barker MOVED THAT THE PURCHASE OF TWO PUMPS AND TWO MOTORS FOR BOOSTER STATION #2 FOR A TOTAL AMOUNT NOT TO EXCEED $37,540.61 PLUS FREIGHT CHARGES TO REPLACE EXISTING PUMPS AND MOTORS BE APPROVED. Vice Chairperson Dietz SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 5 of 8 VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated both wells are producing normally.The reservoirs have no major problems but they are working on a final scope of work to replace the Baseline Reservoir and will be coming before them with a professional services agreement for a consultant for bid documents and design.It will be approximately 4 weeks.The primary booster station at 16th Avenue and Buena Vista is operating normally. Vice Chairperson Dietz asked about Well #8. District Director Frank Blanco stated they have contacted Weber Pump on Well #8 and are in the process of getting our equipment back from them and going to Gilbert Pump to do the work.They will do work similar to what they did at Well #5.They did the perforation opening on the old casing.He then asked for John White to come up and explain the water production costs. District Finance Manager John White stated the first column consists of eleven months of cost averaging with respect to water production.The variable costs consist of different items that do fluctuate with the volume of water produced.The notable costs are the treatment costs with the City of Mesa. The per unit cost is $280 per million gallons, which comes to $91.86 per acre foot.Other costs are the transmission costs from the Mesa treatment plant and the pumping costs.The average cost for the variable costs is $391.80 per acre foot. The fixed costs are those that remain the same within the relevant range, such as paying an "x" amount for pumping a million gallons or pumping nothing.One item is the reserve capacity charge with Mesa which is $6,000 per month.We are now starting to get some use from that.There are also fixed charges with Central Arizona Project.Other variable costs are Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 6 of 8 chemicals, especially with Well #6 for the arsenic treatment. The sales dollars per acre foot is an average of sales revenue over the 6 major categories.A typical acre foot generates $1,556 in revenue.The gross profit on an acre foot is $1,099.73 which offsets the personnel costs, depreciation and replacement costs.The right column covers the same costs over a shorter period of only 6 months.The fixed costs and variable costs have gone up slightly.The sales dollars are from over a period from last year.There has been a rate increase so we are bringing in more money.The gross profit has held pretty steady at $1,099 versus $1,093. District Director Frank Blanco stated the acreage they are purchasing with their approval is 5.89 acres with an asking price of $30,050 per acre.They are offering the asking price. The average price per acre is about $42,555 on the listings. The $177,000 has been deposited and hand -delivered by Pinal County.The Water Infrastructure Finance Authority Planning and Design Assistance Grant for Supervisory Control and Data Acquisition System is for a system that will allow them to monitor and control equipment remotely and will provide increased efficiency and water quality.They received the notice to proceed on April 13.It is a $35,000 grant.The request for proposal needs to be to the city clerk by May 11 for publishing.The bid opening date is June 1 with it coming to the board on June 21 to award a contract. DISTRICT TREASURER REPORT None. ADJOURNMENT adjourned the meeting at 6:46 p.m. ) Chairperson Insalaco ACCEPTED THIS 21ST DAY OF JUNE , 2011, 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 21ST DAY OF JUNE 2011. Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 7 of 8 John S. S. Insalaco Chairperson 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 19th day of April, 2011.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 22nd day of April, 2011. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of April 19, 2011 Page 8 of 8