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HomeMy WebLinkAbout2012-01-17 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING JANUARY 17, 2012 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on January 17, 2012, 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 6:20 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 Kay Bigelow, District Legal Counsel John White, District Finance Manager Others Present:Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant APPROVAL OF MINUTES NOVEMBER 15, 2011 )Vice Chairperson Dietz MOVED THAT THE MINUTES OF NOVEMBER 15, 2011, BE APPROVED. Mrs. Barker SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 1 of 8 VOTE:Unanimous. The motion carried. RESOLUTION NO. 2012-001, AUTHORIZING THE QUIT CLAIM OF CERTAIN PUBLIC UTILITY EASEMENTS IN THE SUNRISE RV RESORT SUBDIVISION ) )District Legal Counsel Kay Bigelow briefed the board on the item.The board has been asked to abandon any rights that the district would have to a public utility easement.There is no equipment in there and there is no chance we would have equipment or water in there at any point.It is recommended they approve the resolution and abandon the public utility easement. Chairperson Insalaco called for any discussion. Vice Chairperson Dietz asked if there would be nothing at all in the future in the easement. District Director Frank Blanco stated it is a recreational vehicle park that was designed with a 3' easement all the way around the property. Vice Chairperson Dietz asked if he thought they might ever get away from the master meter. District Director Frank Blanco stated they would not.This will also make things easier for development services as people are asking for variances to put up covers or storage sheds in that area.We have no use for it at this time. Mr. Smithson asked if they could get whatever easements needed if in the future this will not be a trailer park and will be subdivided. District Director Frank Blanco stated they could. Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 2 of 8 Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Coleman MOVED THAT RESOLUTION NO. 2012-001, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING THE QUIT CLAIM OF ANY AND ALL RIGHTS, TITLE, OR INTERESTS IN CERTAIN PUBLIC UTILITY EASEMENTS IN THE SUNRISE RV RESORT SUBDIVISION AND THE EXECUTION OF SAME BY THE CHAIRMAN OF THE BOARD OF DIRECTORS, BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2012-002, AUTHORIZING APPLICATION TO THE WATERSMART GRANT PROGRAM )District Director Frank Blanco briefed the board on the item.He stated the grant is from the Bureau of Reclamation and authorizes the district manager to sign on behalf of the water board.They have been working on this grant for awhile and it is a pretty big item for them.The total project cost is an estimated $431,000.The district currently has $100,000 in the budget.He is requesting an additional $115,800 in next year's budget for a 50% match of the total cost.It is a SCADA project that will allow them to do some water conservation and bring some energy efficiency savings. Chairperson Insalaco opened the item to council discussion.There being no discussion, he called for a motion. Vice Chairperson Dietz MOVED THAT RESOLUTION NO. 2012-002, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) AUTHORIZING THE DISTRICT'S APPLICATION TO THE WATERSMART GRANT PROGRAM AND THE EXECUTION OF Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 3 of 8 SAME BY THE DISTRICT MANAGER AND/OR CHAIRMAN OF THE BOARD OF DIRECTORS, BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. District Legal Counsel Kay Bigelow stated the resolution, in a certified form, needs to get to the Bureau of Reclamation within 30 days.They need to make sure the resolution gets processed right away. OPTION AND 100 YEAR LEASE OF EXCESS CENTRAL ARIZONA PROJECT (CAP) WATER FROM THE GILA RIVER INDIAN COMMUNITY (GRIC)) )District Legal Counsel Kay Bigelow stated she sent them a chart and letter earlier in the day.The chart has very minor language changes that the Bureau of Reclamation and the Bureau of Indian Affairs wanted in the agreement.They reference the current contracts that govern the Central Arizona Project as well as the settlement agreement that the state, United States and all the water providers entered with certain Indian communities.She will not go into them as they did not change the meaning of the agreement.She was able to get the Gila River Indian Community to agree to run the 3- year option period an extra 9 months.Instead of having the option end on September 30, 2013, we have until June 30, 2014 to be able to opt in and decide if the district will spend $3 million or not to take the thousand acres. Mrs. Barker stated the date on the chart is wrong. District Legal Counsel Kay Bigelow stated it says June 14. Mrs. Barker stated it also says 9/30/12. Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 4 of 8 District Legal Counsel Kay Bigelow apologized and stated it was a typo she did not catch. Mrs. Barker commented it should be June 30, 2014. District Legal Counsel Kay Bigelow stated that is correct.They have an extra 9 months. It was the Gila River Indian Community's concession for a much longer federal process than what they thought it would be going through.They have already paid for the option and half of that will be applied to the $3 million if they exercise it.If they do not exercise it, they will not owe anything else but they also do not get anything back.Those are the original terms. Vice Chairperson Dietz commented that going to June 2014 is awesome. District Legal Counsel Kay Bigelow stated if growth looks like it is going to come, then we will prepare a way to pay for the $3 million.If it is not going to come then it would be hard to see how the district would opt into it.They have the three years and nine months to make that decision. Vice Chairperson Dietz commented if needed it gives them all the extra water that would be needed if the growth starts to take off. Mrs. Barker stated it will be needed someday. District Legal Counsel Kay Bigelow stated given the master plan the state has for Lost Dutchman Heights or Portalis as it was renamed, it will need more water.It is that extra amount.It is whether they have a developer that is ready to plunk down some money.Frankly, they would think $3 million is cheap to insure they have a water supply. Vice Mayor Dietz commented we have to have that 100 year supply. Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 5 of 8 Mr. Smithson asked what percentage of the Portalis area would be covered. District Director Frank Blanco stated it would cover the initial 1,100 acres.The rest of it would have to have additional water brought to the table. It is about one -seventh of the total land area. Mr. Smithson readdressed District Legal Counsel Kay Bigelow and stated it is frustrating for him to get things almost later than the last minute as he almost did not check his email.He did wind up printing all this off, but he did not realize it would mostly be contract when he was printing it off.It has been a long time since he had to review an 18 page contract.It would be nice to have things earlier than this. District Legal Counsel Kay Bigelow apologized.The minor changes that they made to the contract were not something they needed to pay attention to.It was really the nine month addition that was the one point that was good for the district.She realizes she got it to them at the last minute. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Smithson MOVED THAT THE GILA RIVER INDIAN COMMUNITY AND DISTRICT MODIFIED OPTION AND LEASE AGREEMENT FOR CENTRAL ARIZIONA PROJECT WATER BE APPROVED AND THAT THE BOARD CHAIR OR VICE CHAIR BE AUTHORIZED TO SIGN THIS REVISED OPTION AND LEASE AGREEMENT SUBJECT TO FINAL APPROVAL AS TO FORM BY DISTRICT LEGAL COUNSEL. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 6 of 8 District Manager George Hoffman stated Senator Gail Griffin is planning to introduce legislation this session to repeal the $7 million assessment imposed on cities and towns by the Arizona Department of Water Resources.That translated to a water district assessment of about $46,000.A continuation of the assessment, which the League agreed to last year as a temporary one-year step to help with the budget shortfall, represents an inequitable burden on residents of cities and towns.It is an opportunity for the state to balance its own budget and perhaps that cost will go away for the district and the city. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL None. ADJOURNMENT adjourned the meeting at 6:35 p.m. ) Chairperson Insalaco ACCEPTED THIS 3RD DAY OF APRIL ,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 3RD 2012. '—'John S. Insalaco Chairperson DAY OF APRIL Water UtilitiesUtilities Community Facilities District Meeting Minutes of January 17, 2012 Page 7 of 8 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 17th day of January, 2012.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 18th day of January, 2012. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of January 17, 2012 Page 8 of 8