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HomeMy WebLinkAbout2011-08-02 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING AUGUST 2, 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 August 2, 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. Jeff Serdy Mr. Clark Smithson Mr. Chip Wilson Staff Present: (Mr. Coleman was absent.) George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director John White, District Finance Manager Giao Pham, District Engineer Kay Bigelow, District Legal Counsel Others Present:Bryant Powell, Assistant City Manager APPROVAL OF MINUTES OF JULY 5, 2011) )Vice Chairperson Dietz MOVED THAT THE MINUTES OF JULY 5, 2011, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 1 of 10 Mr. Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION ON FINAL BUDGET FOR FISCAL YEAR BEGINNING JULY 1, 2011 AND ENDING JUNE 30, 2012 ) District Finance Manager John White briefed the board on the item.He stated the information in the packet reflects the June 30 revisions to the schedule.Our projected contingency for the upcoming final budget is $294,556, which is basically the amount they are to the good.It was originally projected to be $214,555 because they were trying to be conservative with the year-end projections.The rates show nothing different in the budget. The system connection fees are indexed to the construction price index.When they adopted the tentative budget, that index was 3.1.In June that index decreased to 3.0 so the fees were dropped a little bit, in effect a $10 adjustment downward.The single family residence remained the same, but a multi -family dwelling unit dropped from $3,600 to $3,590. Mrs. Barker stated that is good news.She commented there are few companies that can say they are dropping some rates at this point in time.It may be just a fraction, but it is a decrease. Mr. Smithson commented it indicates there is a 3% increase, yet half of the people are in a category that does not change.He asked if that means the other half will have a 6% increase or something in order to make the overall 3%. District Finance Manager John White stated he might have phrased it incorrectly in saying there is an overall increase of 3%.Most of the rates did increase 3%.The part under the 5,000 is remaining the same. The aggregate amount is probably, in a rough estimate, 2.25%. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 2 of 10 Mr. Smithson stated he is not sure he said overall.He was just reading into it. Vice Chairperson Dietz commented the idea behind that is to reward the people that are conserving and doing their part.They did not want to raise theirs.The people that are overindulging will help pay for their usage. Mr. Smithson asked what notice is given for the public hearing on the budget. District Clerk Kathleen Connelly commented state law requires that we post a notice of the hearing.It was done in the Arizona Republic to meet the legal requirements, it was done in the local paper as a courtesy to the local rate payers, and it was also posted on the district's website. Vice Chairperson Dietz commented it is also posted outside. District Clerk Kathleen Connelly stated it is also posted in the three posting locations. Vice Chairperson Dietz commented there is normally supposed to be two weeks' notice. District Clerk Kathleen Connelly stated there has to be so many weeks in between the tentative and final, just as the city has. Mr. Smithson stated he had some questions earlier but Frank was able to straighten him out on all of them. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2011-2012 )Chairperson Insalaco opened the public hearing on the item.There being no one Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 3 of 10 wishing to speak, he closed the public hearing and re -opened the item to board discussion.There being no further discussion, he closed the item and moved on to the next item. RESOLUTION NO. 2011-005, RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FISCAL YEAR 2011-2012 ) )Chairperson Insalaco called for a motion. Mrs. Barker MOVED THAT RESOLUTION NO. 2011-005, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FISCAL YEAR 2011-2012 INCLUDING NEW RATES FOR MONTHLY BASE SERVICE, CONSUMPTION, SERVICE AND METER INSTALLATION FEES, STANDPIPES, SYSTEM CONNECTION FEES, FIRE HYDRANT METERS, AND GENERAL SERVICE CHARGES; AND ESTABLISHING AN EFFECTIVE DATE, BE APPROVED. Vice Chairperson Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2011-006, ADOPTION OF FINAL BUDGET FOR FISCAL YEAR 2011-2012 ) )Chairperson Insalaco called for a motion. Mr. Smithson MOVED THAT RESOLUTION NO. 2011-006, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) FULLY ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), FOR FISCAL YEAR BEGINNING JULY 1, 2011, AND ENDING JUNE 30, 2012; DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 4 of 10 COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), FOR FISCAL YEAR 2011-2012, BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROFESSIONAL SERVICES AGREEMENT WITH HEERUP ENGINEERING, PC FOR CONSTRUCTION AND PROJECT MANAGEMENT OF ONE MILLION GALLON STORAGE TANK AT BASELINE )District Director Frank Blanco briefed the board on the item.The approval for the engineering and design for the tank was given at the last meeting.This is for the low bid of $32,820 for the construction, management and inspection. Vice Chairperson Dietz commented that these were the three bids received. District Director Frank Blanco stated that is correct.The highest bid they received was from HDR, a consultant that is doing the engineering and design.They are also on the on call list for engineering and design services and other construction services with the city public works department.The middle was from a firm that is also on that list.Staff went out to a specialty firm that specializes in inspection and construction management of this type of construction.In doing so, we got a much lower price and we are staying within the requirements of the procurement process by requesting that we award this to Heerup Engineering. Chairperson Insalaco asked if that is why it is so low. Vice Chairperson Dietz asked if these were all for the same bid. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 5 of 10 District Director Frank Blanco stated they asked the highest bidder to go back in and delete the construction trailer.They wanted to have an office on site, which staff did not feel was warranted.The price was still significantly higher even after cutting that out.Staff did due diligence in trying to make sure that the price we are getting is going to get us the work we need done. Mr. Smithson asked if he was confident that they would do a good job. District Director Frank Blanco stated he feels they will.They checked some of their references, one of which was the City of Phoenix where they did some inspection and engineering work.This person was working for Dave Ennis Williams and Associates at the time.He is now on his own and there is much lower overhead. Mr. Smithson asked what the cost estimate was. District Engineer Giao Pham stated estimates for construction management are usually 8 to 12% of the actual construction.For example, for a one million dollar tank, construction management is roughly around $100,000. Design is the same thing.It depends on the complexity of the project, starting with 10%.They add an extra percentage if it is a complex construction project, or take away a percentage if it is a simply roadway project.HDR is a national firm good with design, but they usually pad a lot of their construction administration fees and everything else.That is why they looked around to save the district some money. Chairperson Insalaco commented they only put the one bid in the packet. Mr. Smithson asked what the total cost of the project is. District Director Frank Blanco stated the total cost of the project is estimated to be about $1.2 million. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 6 of 10 Mr. Smithson stated $100,000 would not have been unreasonable. District Director Frank Blanco stated it would not have been unreasonable.He added the other reason this project is not as complex as some others is that it is a predesigned or prefabricated type of tank.The vendor does much of the tank design.There is no unknown and it does not have the risk. Vice Chairperson Dietz commented this is great.He is curious to see how well this new tank does compared when with the others, along with the ongoing maintenance on the other tanks. Mr. Serdy asked if the bidder now knows what the other people bid. District Director Frank Blanco stated he believes he does.If not, it will be public information that he will get.He felt comfortable that he could do it for this amount. Mr. Smithson stated now that he is on his own that makes a big, big difference.Consultants typically charge 2.5 times at least. District Legal Counsel Kay Bigelow stated they need to add in a contingency amount.She handed the written language to Mrs. Barker to make the motion. She apologized stating they want to be able to give staff an additional 10% in case of unforeseen circumstances. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mrs. Barker MOVED THAT A CONSTRUCTION AND PROJECT MANAGEMENT CONTRACT FOR CONSTRUCTION AND PROJECT MANAGEMENT OF A ONE MILLION GALLON STORAGE TANK AT BASELINE AVENUE, APACHE JUNCTION, ARIZONA, BE AWARDED TO HEERUP ENGINEERING, PC IN AN AMOUNT NOT TO EXCEED $32,820.00 WITH A Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 7 of 10 CONTINGENCY AMOUNT NOT TO EXCEED 10% OF THE CONTRACT AT THE DESCRETION OF THE DISTRICT MANAGER OR HIS DESIGNEE, BE APPROVED. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DESIGNATION OF APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CHECK SIGNATORIES )District Finance Manager John White briefed the board on the item.It is a formality used to approve the changing of the check signers to include Vice Chairperson Dietz.It is parallel to what has been happening in the parent organization. There was general discussion regarding the motion. Mr. Smithson MOVED THAT WE APPROVE AS APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CHECK SIGNATORIES THE CHAIRMAN, THE VICE CHAIRMAN AND THE DISTRICT CLERK. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 8 of 10 DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL District Legal Counsel Kay Bigelow commented on recent legislation.In the board's other role they will have a significant challenge in determining if the impact fees meet the legislation.When they wear the water district hat, they do not have to worry about it.They did not make the legislation or moratorium apply to the counties. Mrs. Barker asked if it was also not applicable to a water district. District Legal Counsel Kay Bigelow stated that is correct. Mrs. Barker asked if a water district could have a water impact fee. District Legal Counsel Kay Bigelow stated the water impact fee is called the connection fee.They are doing that.One of the things they got rid of is the indexing.The index is someone else's index.The city cannot jimmy it in any way, shape or form.It is a mathematical equation.It is just an observation.She has always advised them to do the study, walk through the steps and make what they have put into place justifiable.They have done that on all points.However, the new legislation does not apply to the district. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:23 p.m. ACCEPTED THIS DAY OF , 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 DAY OF 2011. Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 9 of 10 bhn 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 2nd day of August, 2011.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of August, 2011. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 2, 2011 Page 10 of 10