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HomeMy WebLinkAbout2011-11-15 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT (APACHE JUNCTION WATER COMPANY) CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING NOVEMBER 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 November 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. Barker Mr. Coleman Mr. Serdy Mr. Smithson Mr. Wilson Staff Present:George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director Giao Pham, District Engineer Kay Bigelow, District Legal Counsel Donna Meinerts, District Finance Director John White, District Finance Manager Others Present:Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant APPROVAL OF MINUTES OCTOBER 18, 2011 Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 1 of 19 )Vice Chairperson Dietz MOVED THAT THE MINUTES OF OCTOBER 18, 2011, BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. EXECUTIVE SESSION ON CHANGES REQUESTED BY THE RELEVANT UNITED STATES GOVERNMENT AGENCIES TO THE GILA RIVER INDIAN COMMUNITY- DISTRICT OPTION AND LEASE AGREEMENT /CONSIDERATION OF MINOR REVISIONS TO GILA RIVER INDIAN COMMUNITY AND DISTRICT OPTION AND LEASE AGREEMENT FOR CENTRAL ARIZONA PROJECT WATER ) ) Chairperson Insalaco commented Items 4 and 5 will probably be tabled until the next meeting. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated Well 5 is operating normally and is the most reliable well.Well 6 had the air compressor motor go out but it is still in warranty.It will be replaced by no later than early next week.That facility is down but they are using the interconnect facility at Baseline Road.The district got a report back on the video survey on Well 8 showing calcium build up on the perforations down inside the casing, accounting for the inability to pump water.Water samples were also taken on Well 8.With the water sample analysis and recommendations from Southwest Groundwater on the chemical treatment process the district may be able to use, they will loosen up the calcium and get the perforations unplugged. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 2 of 19 The next phase will be studying the aquafir storage and recovery option. Vice Chairperson Dietz asked if the maximum they can get out of that well is 250. District Director Frank Blanco stated that is correct. Vice Chairperson Dietz asked if they had explored going further down to increase the production of that well. District Director Frank Blanco stated they have not explored that option. Vice Chairperson Dietz asked if it would increase production if they drilled deeper. District Director Frank Blanco stated it could.The drawback on that is that when the well was installed, the casing was a certain size.It is only a 10" casing which limits the volume of water that they can have inside the casing.Had the well been drilled wider with a 12" or 16" casing, it would be a viable option to drill deeper and get more capacity.He is not sure why it was limited to that size when it was built.They would also be required to redrill the well if they tried to increase the capacity. Vice Chairperson Dietz commented it would be a pretty good cost in doing that. District Director Frank Blanco stated it would be a significant cost.The booster stations are operating normally.The chlorine residuals in the system are consistent.As the weather turns there is less a demand for chlorine.He applied for an aquafir protection permit for Well 6 and a discharge permit. They were going to expire shortly.The discharge permit is so that they can discharge the decant water into Weekes Wash.It is through the initial review and is now up for public comment. It will generate a savings in terms of not having to haul off the decant water in lieu of discharging it into Weekes Wash. They would have to call in Cooper's Sewer and Drain or someone like that to haul it off at a very high price. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 3 of 19 Vice Chairperson Dietz asked if the district gets any recharge credits for that. District Director Frank Blanco stated we do not get recharge credits for Weekes Wash. Mr. Serdy asked what the weather has to do with chlorine usage. District Director Frank Blanco stated the higher the temperature the more demand.As with having a swimming pool at home, they end up adding more chlorine because of the temperature. Increased temperature in the water will increase the demand for chlorine because it dissipates faster. Chairperson Insalaco stated it drops your pH down and everything. District Director Frank Blanco stated that is correct.They end up having to inject additional chlorine to keep the residuals where they need to avoid any bacterial problems in the system. He gave some background on Central Arizona Project water.The current Central Arizona Project water allocation is 2,919 acre feet annually.The 2010 demand was about 1,400 acre feet, leaving an excess of about 1,500 acre feet.Excess water is put into an excess pool by Central Arizona Project that it makes available for additional deliveries should an irrigation district, private contractor or anyone else want to purchase the water during that calendar year. Vice Chairperson Dietz asked if they would pay Central Arizona Project for that water even though it is allocated to us. District Director Frank Blanco stated they pay for the portion to deliver the water; they are paying for operations and maintenance.They are also paying for the energy costs to pump the water. Vice Chairperson Dietz commented we get nothing for the allotment of water that is ours. District Director Frank Blanco stated the district gets to keep the allotment.If it does not get used, Central Arizona Project Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 4 of 19 can sell it to someone else for the cost of delivering the water.The benefit for the state is to use the entire water allocation.That is why it is in place.As time goes on, more of the subcontractors that have Central Arizona Project allocations are beginning to use more of their Central Arizona Project water.That excess pool is starting to dwindle. Vice Chairperson Dietz commented just as we are looking at doing the additional 1,800 acre feet that we are doing with the Indians in 3 years, it appears to be the same thing.We are purchasing excess water that they do not need, yet we are letting 1,500 acre feet go. Mr. Smithson stated we could use'it for recharge and save it for future use. District Director Frank Blanco stated he will be briefing them on what the options are that they could be doing with that water and what they have done in the past later in this presentation. Vice Chairperson Dietz commented they could pump it down Well 8 for recharge credits or whatever. District Director Frank Blanco added or general recovery.From 1999 through 2006 Central Arizona Project had an incentive recharge program.They wanted to get as much use of the state allocation of Central Arizona Project water as possible.The incentive water was offered at a lower cost so that more entities would purchase that water and make use of it instead of it going down the river for California or Mexico to use, or if there were any other states that might say they would want the water that we are not using.During that time, water was purchased by the water district and delivered to New Magma Irrigation District.New Magma delivered it to the farmers and growers that they served in lieu of pumping groundwater.The net effect was to save the groundwater.This benefitted both the water district and New Magma.We delivered 1,000 acre feet annually in 1999 and 2000.Thereafter, the district purchased more water and delivered 2,883 acre feet until 2006.As more of the users used the Central Arizona Project water, the cost of the water rose and less incentive water became available.The water district was awarded 17,911 acre feet of long term storage Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 5 of 19 credits by the Arizona Department of Water Resources in turn for the delivery of Central Arizona Project water.We also received about 5,200 acre feet for delivery of water in a similar fashion to Roosevelt Water Conservation District.We have an agreement with both Roosevelt Water Conservation District and New Magma to deliver excess or our own M & I water to use in lieu of pumping if they choose to partner up and buy the water. Vice Chairperson Dietz commented we sold it to New Magma at a huge loss.However, we gained the long term credit. District Director Frank Blanco stated that is correct. District Legal Counsel Kay Bigelow stated because they left it in the ground, it gives the district the ability to recover what they left in the ground because they used the Central Arizona Project water.They get it at a price that they can afford. They cannot afford the regular price. District Director Frank Blanco stated the other positive thing to this is once the water is used, it is conserved by using Central Arizona Project water in lieu of pumping.Those long term storage credits become Central Arizona Project water.Our 3 wells are all recovery wells.Whenever we pump our wells, we can choose to recover those long term storage credits or pump groundwater.Even though it is the same aquafir and water on paper, because we developed those credits on Central Arizona Project water, it becomes surface water.It is no longer groundwater.The benefit there is that by recovering surface Central Arizona Project water, we are delivering surface water and not groundwater and are not on the hook for replenishment district taxes which are very costly.It is at a reduced cost when looking at what the district pays for the effluent long term storage credits.He believes that is $120 per acre foot. District Finance Manager John White stated it is between $130 and $140 this year. Vice Chairperson Dietz asked if it is long term storage credits that are received from the sewer district.This is the recharge credits we are purchasing from them. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 6 of 19 District Director Frank Blanco stated that is another form of developing long term storage credits.It is two different types of effluent water long term storage credits they are getting. Vice Chairperson Dietz stated it is still recharge credits we are getting which is good for us.It will help us have the 100 year supply when south of 60 starts to grow and we need to prove that we have the 100 year supply. District Director Frank Blanco stated that is correct. Essentially the Central Arizona Project water is delivered to New Magma, we purchase that at a reduced cost during that time frame, New Magma delivers the Central Arizona Project water in lieu of pumping, and the Arizona Department of Water Resources credits us with long term storage credits. Mr. Smithson stated they pump the water into the ground and we get credit for it. District Legal Counsel Kay Bigelow stated that is incorrect. They take the water out of the canal and use it at a really reduced price.They leave water in the ground.What they do not use, we get credit for.When we pump over the amount that we normally would have to pay a replenishment credit, we can cash those in and not pay the Central Arizona Groundwater Replenishment District for that. Vice Chairperson Dietz commented if we did not have those credits we would have to reimburse. District Director Frank Blanco stated that is correct.The way they replenish it is by buying Central Arizona Project water. Either they buy the water or we buy the water.We buy it at a reduced cost which is much better for us. Mrs. Barker commented it sounds like a juggling act. Mr. Smithson agreed. District Legal Counsel Kay Bigelow stated sometimes we get to pull it out of the ground even though it is not necessarily what New Magma left in the ground.That may or may not become more Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 7 of 19 heavily regulated.At this point it is very good for us.Even though we purchase the Central Arizona Project water and we did not get all the money from New Magma, we got some of it back and we saved over here by not having to pay the replenishment district. Vice Chairperson Dietz commented we have done very well in banking those long term credits in the past. District Legal Counsel Kay Bigelow stated she believes so. District Director Frank Blanco stated the district is recovering some, but we are earning more than we are recovering on an annual basis.The net effect is still positive.What we recover is based on the amount of water that we pump.It is still less than what we develop on an annual basis. Mrs. Barker asked if there is an end date for groundwater credit.She asked if they cease to exist at some point or continue on forever. District Legal Counsel Kay Bigelow stated at this point they do not have an end date.The Department of Water Resources actually took the number we had, divided it by 100 years, and gave us credit for one one -hundredth for every year of what we had.There is a lot of broad use of them and they consider them to last forever. Mr. Serdy asked if private citizens drill wells into the same strata that the commercial wells are. District Director Frank Blanco stated typically they do not drill as deep as our wells.Our wells are 1,100 feet deep. There may be some private citizens that have wells that deep but they are limited in the amount of water they can withdraw.They are limited to 35 gallons per minute which makes them an exempt well.Exempt wells are not controlled by the Arizona Department of Water Resources and do not have to pay for replenishment. Mr. Serdy commented anybody can put a well on private property that wants to. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 8 of 19 District Director Frank Blanco stated only with a permit from Arizona Department of Water Resources.There is a public comment period in which a water provider can comment on that or even another well owner can comment on that.It depends on whether Arizona Department of Water Resources allows them to do that. Mr. Smithson asked how much water we have for Portalis and its anticipated development. District Director Frank Blanco stated the water that we have is really for the current service area.We do have enough water to service the original 1,100 acres that have been sold and will be developed.The additional 6,600 acres will require additional water that will have to be brought to the table or somehow purchased.They will have to work with the developer on that. Vice Chairperson Dietz commented that was part of the decision to go with this lease with the tribe. Mr. Smithson asked how much the Gila River Indian Community is of that. District Director Frank Blanco stated the lease is for 1,000 acre feet.It is an incentive to get a developer to want to start and then continue acquiring additional water. Assistant City Manager Bryant Powell asked how many total acre feet would be needed for the other 6,000 assuming land use as he has seen it. District Director Frank Blanco stated it would depend on the development, land use, and whether they would be having water features or xeriscape with a conservative amount of water.An acre foot of water will serve 3 or 4 people per year, not homes. District Legal Counsel Kay Bigelow stated the 1,000 acre feet with what we have will serve that first 1,100 acres that was sold.They have told State Land that any other developers coming in will be told they have to have water as they come in. They have also told them they need to have maximum effluent recharge and usage.They need to find out not just how to get Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 9 of 19 credits, but how do they get water where they need water in the places where they need it.It is easy to think about effluent going down and doing that.When staff talked to Portalis, they had a top amount of 14,000 acre feet of water with no reuse and those types of things.While talking to them, they got it lower with some reuse but they finally made believers in them that State Land needs to send them in with some water.State Land has 2,000 acre feet of Central Arizona Project water that can be sent in with the developer as they come in.They will have to work to be able to allow the district to serve them. Mr. Smithson stated he believes they are saying there is potential water for about half of it. District Legal Counsel Kay Bigelow stated there is potential water for about a seventh of it. Assistant City Manager Bryant Powell agreed it should be about one -seventh as there are so many assumptions based on what the land use will be. Vice Chairperson Dietz commented he believes they will be looking at conservation at that point and other things with water, such as looking at gray water down the road and other aspects the city can do in putting in requirements for developers, with gray water being used for golf courses or parks. Mr. Smithson stated they are not going to double it so they may be talking about of fifth of it. District Legal Counsel Kay Bigelow stated that is true.There are a lot of ways to lower the water usage and ways to double use the water.Those things are the core of a water service agreement that they were working on actively until the development went away.In the Phoenix Active Management Area you are supposed to have almost a net zero of groundwater use and renewable resources.Everything you pull out of the ground you should recharge except for 4%.They have to come up other sources for renewable resources, such as the lease with the Indian reservation so that we get new water. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 10 of 19 Mr. Smithson asked if they already have one -seventh not counting the Gila River Indian Community. District Legal Counsel Kay Bigelow stated they do not. District Director Frank Blanco stated there is a gap. Mr. Smithson stated there is a significant gap. District Director Frank Blanco stated we were charging $15 per acre foot from 1999 to 2004, going up to $21 per acre foot in 2005, and then up to $22 per acre foot starting in 2006. Agricultural users are used to low cost water.In turn, the water district was paying for the incentive water.In 1999 that was $44 per acre foot, $45 per acre foot in 2001, $55 per acre foot in 2002-2003, and $70 per acre foot starting in 2004.This is the extra water that Central Arizona Project wanted everyone to use in order to use up the entire Arizona allocation.In 2006 it went up to $82 per acre foot.The gap between what we recovered from New Magma and what we were paying for that water was starting to get significantly larger.In 2011 there is no incentive recharge water available.Central Arizona Project is now saying that those who have rights to the water are now using their water or other people are purchasing the water to use it. The cost for recharge water, no longer called incentive water, is now $137 per acre foot.For us to have a good working relationship with an irrigation district would be very difficult because the gap is going to be very big between what we have to pay for it and how much we are able to recover. Mr. Wilson asked who determined the incentive plan and who put it together. District Director Frank Blanco stated the Central Arizona Water Conservation District is in charge of the Central Arizona Project.They are the ones who set the rates.They have a governing board similar to what we have and they vote on the rates and the different programs that they have available. District Legal Counsel Kay Bigelow stated the market sets how much the irrigation district paid back for the water.If they can get it for $15 from someone else, they will not pay us $20. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 11 of 19 Mr. Serdy asked how much credit Arizona Water has and how much they are allotted, as they are poised to service the new area if we cannot.He asked if they have unlimited resources or are they hampered as much as we are. District Director Frank Blanco stated Arizona Water has 6,000 acre feet of Central Arizona Project water available to them. He does not know how much they have in long term storage credits. Assistant City Manager Bryant Powell asked if that is across their entire service area. District Director Frank Blanco stated it is across their whole service area. Assistant City Manager Bryant Powell stated that includes to Bisbee, Casa Grande on to us. District Director Frank Blanco stated it includes the Apache Junction area. Assistant City Manager Bryant Powell asked how much water is allotted to the State Land Department. District Legal Counsel Kay Bigelow stated for the Apache Junction area it is 2,000 acre feet and an unattached allotment of 20,000 acre feet.It is not tied to any particular land. The 2,000 that they told is available for Apache Junction, it is obvious it is important for the district to get that water and not have it go to another water provider. District Director Frank Blanco stated proportionately they have about the same per capita as we do.We have about a third of the service area.We have 3,000 acre feet; they have 6,000 acre feet. District Legal Counsel Kay Bigelow stated Arizona Water does not have a water treatment plant.Any Central Arizona Project water they sell in untreated so it is construction water and things like that.They have not used what they have.They have a lot Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 12 of 19 of the same challenges but they have a more renewable source under their arm for right now. Vice Chairperson Dietz commented he thinks it will be to our best advantage in the future to have our own water treatment plant.We will have more control and be able to regulate the cost instead of having to wheel the water and have Mesa treat the water. District Legal Counsel Kay Bigelow stated there are a lot of areas that Arizona Water has Central Arizona Project allocations for that they do not use.They do not use it very often for a lot of business reasons.They do not use it in Casa Grande where they have 9,000 acre feet.They have them and hold them. They pay the capital charges on holding it but they do not take it and use it.It is expensive to use under their business model. District Manager George Hoffman asked why they should be worried about serving Portalis.The private sector is often offered as an alternative to government.The city does not provide electricity; Salt River Project does that.We do not provide cars; auto dealerships do that. Vice Chairperson Dietz commented he believes that the water district should be in charge or take the lead and show State Land that we are capable of doing that instead of having another entity come in.We are controlling our own destiny for the city even though we have developers that are going to be required to produce water.We still have to have the capability to show that we have got that. District Manager George Hoffman commented he thinks they just want to insure that water is there so that development occurs so that they can sell their land.They do not care what source it comes from. Vice Chairperson Dietz asked if it would be to our advantage to show that we could provide it if need be. District Legal Counsel Kay Bigelow stated that would be true. When State Land opens up land to sell, it is like a private Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 13 of 19 developer.Its job is to get the most money for that piece of property to put into the school fund.It is not looking for what is good for the State of Arizona.Its sole responsibility is to make the property the most attractive it can to bring the highest price it can in the market.There was some discussion about who would be the water provider.She thinks that being in the water service business, it is a policy decision by the board to determine if they are going to try to control one of the utilities that will control the growth of the city, so that growth occurs in the city within the parameters to control it, or is the board going to allow the utilities to be provided by a private company who will provide the means for growth in the outlying county areas.It is a policy concern for the board. If they think that a municipality needs to have a tax base that pays for the services that it wants to have, and not having the outlying areas use those services without being part of the tax base, then they need to make sure they control the growth around them.If they are going to allow a utility to be outside and allow development outside, then they have to balance whether or not some of the services are going to be used by unincorporated residents that are not responsible for the costs. Mr. Coleman stated we already have that. District Legal Counsel Kay Bigelow stated once they entered into a water system business, they made the decision to control the growth around them. Vice Chairperson Dietz commented it is the same with the sewer. If we have control of the sewer and the water, then we would have the package to control our own destiny. District Legal Counsel Kay Bigelow stated otherwise they end up with a San Tan Valley that grows and has all sorts of needs and takes things from other areas, such as the library district from the county. District Manager George Hoffman commented the Ironwood project was $80 million to $90 million and development did not pay for that; the public helped pay for that because they were not able to manage and control how that road occurred.They were able to get their water and zoning on their own and that had big impact Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 14 of 19 for the county.It is not that the private sector could not provide the water.They absolutely can provide the water.It is a growth and management tool for the policy body if it wants it to help manage, how, where and when the sequence of growth occurs. Mr. Smithson stated the private agency will not be nearly as concerned as we will about phasing and timing. District Manager George Hoffman stated they will be unconcerned. Mrs. Barker commented their primary goal is going to be how many dollars they can put in their pocket and they will not care how stacked it is. District Manager George Hoffman stated it is a very rational way for them to operate and the board is also running a business that ensures that taxpayer dollars are spent efficiently and that they bring in revenue commensurate with those costs. District Engineer Giao Pham commented Chandler has its own water.They wanted to attract Intel.Intel is there because they bundled up the demand of a semi -conductor factory with their utilities.If they were a private company, the private utilities would not care about that.They were able to pool their research and understand their water needs as a city and enticed the larger manufacturing.That is what we need to do as a city down the road. Mr. Coleman commented he is not sure they would be able to do that deal today.They gave $800,000 in incentives to attract Intel.He is not sure how much of that paid for itself over the years.That tool has also been taken away by the legislature. District Legal Counsel Kay Bigelow stated that and the corporation commission does not allow a private utility to take over here and put over there.The municipality has more flexibility which the district is. Mr. Serdy asked if the Queen Creek private water company is landlocked or if they can expand into our area. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 15 of 19 District Manager George Hoffman stated he believes the town, with voter permission, purchased that company for the reasons we just discussed. Mr. Serdy asked if they can continue to encroach on us. District Manager George Hoffman stated they could if they had the desire and the State Land Department allowed them to annex northward. Mr. Serdy asked who serviced Florence because we could possibly grow up against them, too. District Director Frank Blanco stated there are several water companies out there that could provide service that are more than happy to come into an area.It is a policy decision on what has been discussed. Mr. Serdy asked who takes care of Florence. District Legal Counsel Kay Bigelow stated they have their own system.The northern part of Anthem is served by Johnson Utilities.It comes down from the San Tan area and serves them. District Director Frank Blanco stated part of it is Florence and part of it is private. Mr. Serdy asked if any of these companies have an advantage over us or are we on a level playing field. District Legal Counsel Kay Bigelow stated the district has a real advantage by having effluent available through the sewer district.That is something that they would love to have. District Manager George Hoffman commented it is not to say that we do not have some internal cost challenges.The company that was purchased was Consolidated Water.It was called that because they consolidated some tiny systems.Those tiny systems put in some cheap, inexpensive infrastructure that was a good short term investment for them, but when you are running this taxpayer business, you seek to make investments that make sense Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 16 of 19 for a longer period of time.The implication for us is that we are replacing some of that over time. Vice Chairperson Dietz commented that is what we inherited when we purchased the company. District Manager George Hoffman stated we inherited it when we purchased it.That reinvestment is expensive, until what needs to be replaced for the long run is completed.If someone put their infrastructure in right the first time, for example Arizona Water and he is assuming they did, they paid more up front for some of those things, but their long term operating costs are going to be better.We are doing some catch up on infrastructure.We do have some cost challenges when you do a side by side comparison in some instances. Mr. Serdy commented when he moved here in the 80's you could not drink the water from Consolidated.There were many different funny colors. District Director Frank Blanco stated he believes the private water company solution is the short term solution, but in terms of a long term investment and sustainability for our city, it is not a good long term solution.He gave an overview presentation on the groundwater saving facilities that are in the Phoenix Active Management Area.The alternative to a groundwater savings facility is the groundwater recharge.The district cannot directly subcontract our Central Arizona Project entitlement with a farmer or a grower.The water is getting more expensive and the gap between what the farmers used to pay and what they are paying now is getting greater.Another alternative is Superstition Mountain Recharge Project.The permitted capacity is 25,000 acre feet annually.They will be able to recharge 3 or 4 months of the year at that capacity. The Phoenix Active Management Area allows you to recharge at any facility.Studies have shown that it would be a minimal impact on our aquafir if we recharged as far away as Tonopah, but it would give us additional recharge credits. DISTRICT TREASURER REPORT None. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 17 of 19 DISTRICT LEGAL COUNSEL None. ADJOURNMENT adjourned the meeting at 6:55 p.m. ) Chairperson Insalaco ACCEPTED THIS 17TH DAY OF JANUARY , 2012, 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 17TH 2012. ATTEST: Kathleen Connelly District Clerk DAY OF JANUARY j e -'1U 0 a l ohn 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 15th day of November, 2011.I further certify that the meeting was duly called and held and that a quorum was present. Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 18 of 19 Dated this 21st day of November, 2011. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 15, 2011 Page 19 of 19