Loading...
HomeMy WebLinkAbout2012-05-15 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING MAY 15, 2012 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 15, 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 6:00 p.m. ROLL CALL Board Members Present:Chairperson Insalaco Vice Chairperson Dietz Mrs. Barker Mr. Serdy Mr. Smithson Mr. Waldron 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 Giao Pham, Interim Utility Director/District Engineer Others Present:Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant APPROVAL OF MINUTES OF APRIL 3, 2012 ) ) Vice Chairperson Dietz MOVED THAT THE MINUTES OF APRIL 3, 2012, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 1 of 8 Mr. Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. MOTION FOR EXECUTIVE SESSION for a motion. ) Chairperson Insalaco called Mrs. Barker MOVED THAT AN EXECUTIVE SESSION BE HELD AT 6:00 P.M. ON TUESDAY, MAY 15, 2012, IN THE CITY CLERK 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)(1)(3) AND (4), AND AS FURTHER OUTLINED ON THIS AGENDA. Vice Chairperson Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. The board left the council chambers at 6:07 p.m. to convene the executive session. Chairperson Insalaco reconvened the regular meeting at 6:25 p.m. DIRECTION TO STAFF REGARDING INTERIM AND REPLACEMENT OF DISTRICT LEGAL COUNSEL for a motion. ) Chairperson Insalaco called Mrs. Barker MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING INTERIM AND REPLACEMENT DISTRICT LEGAL COUNSEL: THAT THE DISTRICT MANAGER, DISTRICT DIRECTOR, DISTRICT CLERK AND CITY ATTORNEY AND Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 2 of 8 ASSISTANT CITY MANAGER DISCUSS THE MATTER AND RETURN TO THE BOARD WITH OPTIONS REGARDING REPLACEMENT OF DISTRICT LEGAL COUNSEL AT OUR NEXT BOARD MEETING. Mr. Smithson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2012-003, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING THE QUIT CLAIM OF A CERTAIN PUBLIC UTILITY EASEMENT IN THE ROADHAVEN RV PARK AND THE EXECUTION OF SAME BY THE CHAIRMAN OF THE BOARD OF DIRECTORS ) District Legal Counsel Kay Bigelow stated this is another abandonments of a public utility easement that the Water District does not need.There are other areas that can be used in case they need to move through this area. District Director Frank Blanco stated these are existing easements being used for construction of canopies in the area. They are not near the streets. They are in the perimeter of Roadhaven RV Park. Chairperson Insalaco called for a motion. Vice Chairperson Dietz MOVED THAT RESOLUTION NO. 2012-003, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING THE QUIT CLAIM OF A CERTAIN PUBLIC UTILITY EASEMENT IN THE ROADHAVEN RV PARK AND THE EXECUTION OF SAME BY THE CHAIRMAN OF THE BOARD OF DIRECTORS, BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 3 of 8 Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION AND CONSIDERATION FOR AWARD OF BID AND CONTRACT TO PURCHASE WATER TREATMENT CHEMICALS TO HILL BROTHERS CHEMICAL COMPANY PER COST PROPOSAL DATED MARCH 06, 2012 ) ) District Director Frank Blanco recommended that they award this contract.The contract is for supplying chemicals used to treat water for arsenic removal. This is the company currently supplying them with chemicals. The current contract expires this year and without a new contract there would be no assurance that they would be able to receive chemical deliveries in a timely matter. This agreement also has a provision for the district to go to another vendor besides Hill Brothers if they are not able to perform as stated in the contract. Chairperson Insalaco called for a motion. Mrs. Barker MOVED THAT A CONTRACT TO PURCHASE WATER TREATMENT CHEMICALS FROM HILL BROTHERS CHEMICAL COMPANY PER COST PROPOSAL DATED MARCH 06, 2012 BE APPROVED AND THAT THE BOARD CHAIRPERSON OR VICE CHAIRPERSON BE AUTHORIZED TO SIGN THIS CONTRACT SUBJECT TO FINAL APPROVAL AS TO FORM BY DISTRICT LEGAL COUNSEL. Vice Chairperson Dietz SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 4 of 8 None. DISTRICT DIRECTOR REPORT District Director stated the district is paying 98% of the Central Arizona Project delivery rates which tie into the Superstition Mountain Community Facilities District agreement. Well #5 is producing about 20% of the total demands and Well #6 is producing about 16%. The remaining 67% of the 1.5 million gallon per day current demand is being delivered through the interconnect. Vice Chairperson Dietz asked what would happen if they did not have the interconnect now and would there be enough water out of wells #5, #6 and #8 to supply all of their demands. District Director Frank Blanco stated they have a connection with Arizona Water that is still in place. Between wells #5 and #6, which are the primary producers, they have the capacity of 1,100 gallons per minute which ends up being about 1.25 million gallons per day.They would have a little bit of a shortage there.If it is not a long term outage for the interconnect, they have storage available that would last them a couple of days. The other alternative would be to connect back up with Arizona Water.The connection is still in place; it has not been taken out. Vice Chairperson Dietz stated they only have 36% production of well water of their own if they do not have the interconnect. District Director Frank Blanco stated the reason the percentages are shown that way is that currently they are planning on delivering 67% of the water through the interconnect.On weekends they use the ground water which delivers 100% of the demands.From Friday afternoon until Monday morning they run 100% ground water. They are able to deliver enough water because they have some storage as well. Booster stations are at full capacity.They just replaced one pump at booster #1 and are looking at rebuilding the old pump so that they can have a spare in case of another pump failure. The distribution system is operational with no breaks or outages.Storage is at 100% capacity. They have an additional storage facility that is being Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 5 of 8 constructed.They are cleaning up the alleys using a private company. Paying a company about $657.00 will offset their overtime cost for the meter reader. Twenty-five percent of the meter reader's overtime is due to weeds in the alleys. This is a dangerous situation because of snakes, broken glass, etc.The construction of the Baseline storage tank is underway. The hole is 100 feet in diameter and the excavation goes down 10 feet below the low grade to remove the soil.The engineer felt that soil was not appropriate to support the load of the tank and the water inside of the tank. After the excavation took place they back filled it with granular material so that the compaction is proper to sustain weight of the tank and the water. There is a vault where the valves are installed that connect to the interconnect and to booster #1. They will be able to get water into the new tank and into the existing tank from either the wells or the interconnect at Baseline and Signal Butte.They are on schedule and should be done by next winter. Water production for January 2012 is a little above what it was in 2010 and 2011. They are significantly higher for February than they were in previous years. There was one extra day in February but they do not feel that was the reason. Mr. Smithson asked why the big drop in February 2011. District Director Frank Blanco stated he believed it was due to some of the water that was actually produced in February being counted in March because there was a big rise in March.March 2012 is pretty close to last year and higher than the year before.April is pretty much what it was in 2011 but significantly higher than 2010. It goes back up in May and then drops down around August. They are seeing a higher rise in demand for water overall.Currently the municipal and industrial delivery cost per acre foot is $122.00.In June 2011 Central Arizona Project projected the water demand amount to go up 3% for 2013, 2% for 2014, 6% for 2015 and 3% for 2016.From 2012 to 2016 there is a 15 1/2 % increase in municipal and industrial water delivery cost. Mr. Wilson asked why there is a 6% increase in 2015. District Director Frank Blanco, stated this is what Central Arizona Project projects.The municipal and industrial cost has Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 6 of 8 two components: one is operations and maintenance and the other is pumping cost. Central Arizona Project might be projecting special maintenance activities or energy rates going up in 2015. The energy rates are connected to the Navajo generating station. There are some environmental concerns there.The recharge in 2016 is projected to be the same as the actual delivery of municipal and industrial water delivery cost. They pay a capital charge in full annually and it is based on their full allocation. They are paid annually regardless of use and this charge is not included in the delivery cost.They are paying $15.00 per acre foot.They are projecting that maybe by 2016 the capital charges will go away.That is contingent upon the Navajo generating station still being operational and not requiring some major overhauls such as installing scrubbers and things of that nature. He does not feel the cost will ever go away.Capital charges for the actual construction of the Central Arizona Project Canal are supposed to be paid off in 2040.Even though the capital charges go down, the Central Arizona Project water charges will go up each year. DISTRICT TREASURER REPORT None. DISTRICT LEGAL COUNSEL None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:44 p.m. ACCEPTED THIS 19TH DAY OF JUNE , 2012, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 19TH 2012. DAY OF JUNE do64 J<Pa-Lhn S. Insalaco Chairperson Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 7 of 8 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 15th day of May, 2012.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 21st day of May, 2012. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 15, 2012 Page 8 of 8