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HomeMy WebLinkAbout2011-07-05 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JULY 5, 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 July 5, 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 5:33 p.m. ROLL CALL Board Members Present:Chairperson Insalaco Mrs. Robin Barker Mr. Douglas Coleman Mr. Jeff Serdy Mr. Clark Smithson Mr. Chip Wilson Staff Present: Others Present: (Vice Chairperson Dietz was absent.) 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 Bryant Powell, Assistant City Manager Matt Busby, Assistant to the City Manager APPROVAL OF MINUTES OF JUNE 21, 2011 Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 1 of 11 )Mrs. Barker MOVED THAT THE MINUTES OF JUNE 21, 2011, BE APPROVED. Mr. Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2011-2012 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FISCAL YEAR 2011-2012, CLASSIFICATION PLAN FOR DISTRICT EMPLOYEES, AND DATE, TIME AND LOCATION FOR CONSIDERATION OF PROPOSED FINAL BUDGET ) ) District Finance Manager John White briefed the board on the item.He stated the budget presented in the packet is the same as in the budget books distributed to the board.It has been discussed in staff meetings and they have had time to look over it.Vice Chairperson Dietz did find a couple of things he would like to see changed.There was a duplication of a consultant in one line item that will be reduced.Another is the schedules reflect actuals through May 30.The budget schedules that will be presented at final budget will reflect June 30.They will be unaudited actual amounts and projections will be revised accordingly.It should be substantially the same.The budget shows an overall increase of about three percent in the rates. It has rather ambitious capital improvement outlays that have been gone over before. Mrs. Barker stated they have increased the line item for legal services from the original $55,000 to $65,000.It says it is to allow for additional services related to additional development and water acquisition.She asked if he knew what they were anticipating here or is this just a coverall. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 2 of 11 District Finance Manager John White stated it is just a broad -based coverall.One of the things that might come about is additional development with Portalis. District Director Frank Blanco stated there is a possible amendment to the GRIC, a request from the Bureau of Reclamation.They want it to more correctly reflect their requirements for that agreement. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2011-2012 )Chairperson Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and moved on to the next item. RESOLUTION NO. 2011-003, DECLARING AS PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN FOR FISCAL YEAR 2011-2012" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2011-2012 )District Director Frank Blanco briefed the board on the item.It is the classification and compensation plans.They are essentially the same as they were in 2010-2011.The plan is similar to what the city has. There was general discussion about this being the same as the previous plan. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Coleman MOVED THAT RESOLUTION NO. 2010-003 (SHOULD BE CORRECTED TO RESOLUTION NO. 2011-003), A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) DECLARING AS PUBLIC RECORD AND ADOPTING Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 3 of 11 CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE CLASSIFICATION PLAN FOR FISCAL YEAR 2011-2012" AND "THE COMPENSATION PLAN FOR FISCAL YEAR 2011-2012", BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2011-004, ADOPTING A PROPOSED BUDGET FOR FISCAL YEAR 2011-2012, ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR FISCAL YEAR 2011-2012, ESTABLISHING A PUBLIC HEARING AND DESIGNATING DATE, TIME AND LOCATION FOR PUBLIC HEARING FOR FINAL BUDGET ADOPTION )Chairperson Insalaco called for a motion. Mr. Smithson MOVED THAT RESOLUTION NO. 2010-004 (SHOULD BE CORRECTED TO RESOLUTION NO. 2011-004), A RESOLUTION OF THE BOARD OF DIRECTORS 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, 2011 AND ENDING JUNE 30, 2012, ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2011 AND ENDING ON JUNE 30, 2012; 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. Mr. Coleman SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 4 of 11 Mrs. Barker stated there is an "and" there that sets up the budget acceptance. District Clerk Kathleen Connelly stated the motion sheet shows that part of the motion is to set the date, time and location for final budget adoption. Mr. Smithson FURTHER MOVED THAT THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON AUGUST 2, 2011 AT 6:00 P.M. IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, 300 EAST SUPERSTITION BOULEVARD, APACHE JUNCTION, ARIZONA. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED TEMPORARY LEAVE FOR WATER DISTRICT EMPLOYEES FOR FISCAL YEAR 2011-2012 )Assistant City Manager Bryant Powell stated they have gone over the personal leave item one on one.Staff is recommending the water district employees be awarded the personal leave as well. Mrs. Barker asked as well as what. Assistant City Manager Bryant Powell stated as well as the city employees. District Clerk Kathleen Connelly stated the motion is almost identical to the one from last year.The change is she combined some of the detail into the title rather than have a very lengthy and confusing clause stuck in there.They also adjusted the date to reflect the time frames for this year. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 5 of 11 Mr. Serdy asked if this will cost the district money in overtime for people covering. District Director Frank Blanco stated it will not.They work around the overtime issue. They do not have to take a block of one week of personal leave. They take it throughout the year.They adjust people's schedules so they are not working more than 40 hours a week. They have not seen an increase in overtime as a result of that. District Clerk Kathleen Connelly stated the motion specifies that it cannot be used to accrue overtime. District Director Frank Blanco stated it cannot be used in combination with hours worked to accrue overtime. Mr. Wilson asked what about other people accruing overtime for covering for these people being on leave. District Clerk Kathleen Connelly stated it is the same thing. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mrs. Barker MOVED THAT WE APPROVE 40 HOURS OF TEMPORARY PERSONAL LEAVE FOR FULL TIME EMPLOYEES WORKING 32 TO 40 HOURS PER WEEK AND 25 HOURS (corrected from 5 hours to 25 hours due to clerical error) OF TEMPORARY PERSONAL LEAVE FOR PART-TIME EMPLOYEES WORKING 24 TO 31 HOURS PER WEEK FOR FISCAL YEAR 2011-2012 SUBJECT TO THE FOLLOWING TERMS:(1) THIS LEAVE WILL BE PLACED IN A SEPARATE BILLING ACCOUNT APART FROM VACATION AND SICK LEAVE;(2) 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;(3) IT WILL ONLY BE AVAILABLE FOR USE AUGUST 1, 2011 AND UP TO AND INCLUDING JUNE 30, 2012;(4) THERE WILL BE NO CARRYOVER OF THIS LEAVE BEYOND JUNE 30, 2012;(5) PRIOR TO TAKING THIS LEAVE AN EMPLOYEE SHALL OBTAIN APPROVAL Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 6 of 11 FROM HIS/HER DEPARTMENT HEAD;(6) IT SHALL BE EXTENDED TO NON- EXEMPT AND EXEMPT WATER DISTRICT EMPLOYEES WHO REGULARLY WORK 24 OR MORE HOURS PER WEEK;(7) IT SHALL BE EXTENDED TO ONLY THOSE EMPLOYEES WHO ARE AN EMPLOYEE OF RECORD ON OR BEFORE AUGUST 1, 2011; AND (8) IT SHALL NOT BE INCLUDED IN ANY PAY OUT PROVISIONS OR AGREEMENTS. I FURTHER MOVE THAT THE DISTRICT MANAGER IS AUTHORIZED TO MAKE FINAL ADMINISTRATIVE ADJUSTMENTS TO THESE TERMS. Mr. Wilson SECONDED THE MOTION. Mr. Smithson asked if there would any legal problems with these issues. District Legal Counsel Kay Bigelow stated there is no legal problem.The department head will be making sure that we comply with the Fair Labor Standards Act.The time must be accounted for properly. Mr. Smithson asked what the implication is for applying it to only those hired by August 1, 2011. District Clerk Kathleen Connelly stated that date was selected specifically because of the recent reduction in force.It takes it beyond any of those individuals qualifying for this leave. Mr. Smithson asked what happens to someone hired after this. District Clerk Kathleen Connelly stated they would not be eligible.That was the recommendation of several internal committees going back about 3 years now. District Director Frank Blanco stated any employee taking an incentive package for early termination would not be eligible for this personal time. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 7 of 11 VOTE:Unanimous. The motion carried. AWARD OF ENGINEERING SERVICES CONTRACT TO HDR ENGINEERING FOR ENGINEERING AND DESIGN OF ONE MILLION GALLON STORAGE TANK AT BASELINE )District Director Frank Blanco briefed the board on the item.He stated HDR is on the city on call consulting list.Phase one of the process involved a tank selection process done with HDR.It gave them some good information on the different types available for construction that would meet the needs of the water district in terms of storage, operations, maintenance and initial capital outlay. Phase two is the professional services agreement they are requesting approval for tonight.HDR has experience in concrete tank design and is knowledgeable of our system and its needs. The design scope includes project administration, design and technical services.The project will take about 5 months. There is a geotechnical piece to this and some surveying involved, in addition to potholing, construction costs, preparation, and they will assist with the bid phase services of this project.They will take the project from the preliminary design to the final bid package.They will then be able to go out and get some pricing on the construction of the tank.The recommendation is for HDR to be awarded the professional services agreement in the amount of $122,692.00 plus a 10% contingency which is about $12,269 for a total amount of $134,961.00 for the engineering and design of the one million gallon storage tank. Mrs. Barker commented the contingency amount is not included in the motion.She asked if it needed to be included in the motion. District Director Frank Blanco stated he would like it included in the motion. Mrs. Barker asked where the money is coming from. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 8 of 11 District Director Frank Blanco stated it is part of the Water Infrastructure Finance Authority loan that they acquired for the construction of the interconnect facility. Mrs. Barker commented this is money that we already have. District Director Frank Blanco stated this is money that we have been approved to borrow. Mrs. Barker stated that answers her question.She thought she remembered that but she thought she should check. District Legal Counsel Kay Bigelow asked what the contingency amount is. District Director Frank Blanco stated the contingency amount is $12,269. There was general discussion on how the amount should be worded in the motion. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mrs. Barker MOVED THAT AN ENGINEERING SERVICES CONTRACT FOR ENGINEERING AND DESIGN OF A ONE MILLION GALLON STORAGE TANK AT BASELINE AVENUE, APACHE JUNCTION, ARIZONA, BE AWARDED TO HDR ENGINEERING, INCORPORATED IN AN AMOUNT NOT TO EXCEED $122,692.00 WITH A CONTINGENCY AMOUNT SUBJECT TO THE DISTRICT MANAGER'S APPROVAL IN AN AMOUNT NOT TO EXCEED $12,269, 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. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 9 of 11 The motion carried. AWARD OF CONSTRUCTION AND PROJECT MANAGEMENT CONTRACT TO HEERUP ENGINEERING, PC FOR CONSTRUCTION AND PROJECT MANAGEMENT OF ONE MILLION GALLON STORAGE TANK AT BASELINE )District Legal Counsel Kay Bigelow asked that this be postponed to August 2. Chairperson Insalaco asked if they needed a motion for that. District Clerk Kathleen Connelly stated they can but it is not necessary. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL None. ADJOURNMENT adjourned the meeting at 6:30 p.m. ) Chairperson Insalaco ACCEPTED THIS 2ND DAY OF AUGUST , 2011, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY), CITY OF APACHE JUNCTION, ARIZONA. Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 10 of 11 SIGNED AND ATTESTED TO THIS 2ND 2011. ATTEST: Kathleen Connelly District Clerk DAY OF AUGUST hn S. Insalaco Chairperson 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 5th day of July, 2011.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of July, 2011. 7 /4Z 7 i/e-e7 4 e , -1 ;Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of July 5, 2011 Page 11 of 11