Loading...
HomeMy WebLinkAbout2012-06-19 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING June 19, 2012 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on June 19, 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 Mrs. Evans Mr. Serdy Mr. Waldron Mr. Wilson Staff Present: Others Present: George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director John White, District Finance Manager Giao Pham, Interim Utility Director/District Engineer Donna Meinerts, District Finance Director Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant Liz Riley, City Human Resource Director APPROVAL OF MINUTES OF May 15, 2012 Water Utilities Community Facilities District Meeting Minutes of June 19, 2012 Page 1 of 9 ) Vice Chairperson Dietz MOVED THAT THE MINUTES OF MAY 15, 2012, BE APPROVED. Mrs. Barker 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, JUNE 19, 2012, IN THE CITY CLERK CONFERENCE ROOM FOR DISCUSSING PERSONNEL MATTERS REGARDING THE POSITION OF DISTRICT LEGAL COUNSEL IN ACCORDANCE WITH 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 to convene the executive session at 6:05 p.m. Chairperson Insalaco reconvened the regular meeting at 6:35 p.m. DIRECTION TO STAFF REGARDING INTERIM AND REPLACEMENT OF DISTRICT LEGAL COUNSEL for a motion. ) Chairperson Insalaco called Water Utilities Community Facilities District Meeting Minutes of June 19, 2012 Page 2 of 9 Mrs. Barker MOVED THAT THE FOLLOWING DIRECTION BE GIVEN TO STAFF REGARDING INTERIM AND REPLACEMENT OF DISTRICT LEGAL COUNSEL: THAT WE UTILIZE THE CITY ATTORNEY, JOEL STERN, WITH NICHE ATTORNEY AS NEEDED. MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2012-009, ADOPTING THE 2012 EDITION OF THE OF APACHE JUNCTION PERSONNEL RULES FOR WATER DISTRICT EMPLOYEES BE APPROVED. Mr. Waldron SECONDED THE ) District Clerk Kathy Connelly stated this is similar to what the city council did at the last meeting.There were changes to the personnel rules for the city and the water district has adopted the same set of personnel rules.There is a slight difference in this resolution than the city's in that there is a clause that will allow them to adopt changes in personnel rules without coming back to the city council for approval.She suggested that even though those rules are not brought back to the council for adoption that there be a notation in all the council future minutes that shows changes have taken place in the personnel rules.This way the council has put on the record that there have been changes made. Chairperson Insalaco called for a motion. Vice Chairperson Dietz MOVED THAT RESOLUTION NO. 2012-009, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), ADOPTING THE 2012 EDITION OF THE CITY OF APACHE JUNCTION PERSONNEL RULES FOR WATER DISTRICT EMPLOYEES BE APPROVED. Water Utilities Community Facilities District Meeting Minutes of June 19, 2012 Page 3 of 9 . Wilson SECONDED THE MOTION. VOTE Unanimous. The motion carried. DISCUSSION OF BUDGET, RATES, SELECTION OF DATE, TIME AND LOCATION FOR TENTATIVE AND FINAL BUDGET ADOPTION FOR THE YEAR BEGINNING JULY 01, 2012 AND ENDING JUNE 30,2013 ) District Director Frank Blanco talked about some of the accomplishments from this past year such as the completion of the design of a storage tank and chlorination system and the construction of both being underway. The,:discharge elimination pollution system will help discharge some of the clean water from well #6 into Weeks Wash_ They also acquired an Arizona Department of Water Resources recharge permit for Central Arizona Project. water -to_be,recharged.at7 the Superstition Mountain recharge facility at Ocotillo and the Central Arizona Project Canal He received the amendment for GilaRiVer Indian community water lease option; it is pending' final review by the water attorney. Supervisory control And data acquisition -system design has been completed and construction will be phased in..They did not receive the grant that they apPlied fOr:to .do this. It is in the 2012-2013 fiscal year budget:The 2a12-2013 goa18 are to complete the Baseline tank, the:chibrination .aystem and upgrade some of the aging int:xastrutture by funding from capital replacement funds that are: in.the 2012-2013 fiscal year budget. The water acquisition. tee stUdy.is:designed to help develop a water resource that will be fair for current and future generations with the -intent of having growth pay for new water.. Supervisory control and data acquisition 'phase I'Will.begin in 2012H2013and ,wilI.:include the . booster.8tatiOns at Buena VistaHand 16th Avenue,' Baseline and Signal Butte-and Baseline next to public works. The Sites will be Monitored and .Contr011ed using the supervisory, control and data acquisition' system.-Bids will be collected and the : contract awarded for the project in the -fall Of:2012.. They Will belooking-:at an Apache Junction Central -Arizona Project 'Master Water Utilities Community Facilities'.District Meeting Minutes -of. June 19,.2012 . • Page 4 -of 9:. •Plan andand -will be coming to the board for approval based on the Central Arizona Project Five Year Capitaa Improvement Plan and the basis of Arizona Depart.ment Of Water Resources issuing an assured watersupply. District. Finance Manager John White discussed the budget book given -to the council for review.First he discussed the fund balance analysis.The water district has one fund but the cfunding sources and expenditures are subdivided into sub funds. Funding sources are unassigned funds which are like the city's .general funds. There are the capital facilities fees which are, connection fees intended to insulate the existing customer base from 1.-;aying for growth. There are capital replacement fees which are a Charge back of depreciation of the existing infrastructure to help fund the new infrastructure, such as system replacements.There are also land sale funds which are for future growth. The next section in the budget book is the budget sumplarr which is a view that captures all the revenue and - expenditures of the budget subdivided into three years: the previous fiscal year 2010-2011 which show totals, several columns showing the current fiscal 2011-2012 and -then.a. column ConSisting of details for the proposed budget for fiscal year. 20-12 013. '-There are two IteMs in the Propbsed -budget column. One has to do with Superstition' Mountain 'rechargecredits and the other item 13 called contingency which consists of where the revenue exceeds expenditures,' showing about -$4.95,0-00 This is a healthy sign and is a fully' funded contingency.: The board .a Coupie .Ot'years'ago allowed the double digit increase that allOwed theM to save and bank some money.tor tuture needs. They are' startingto save money from the Mesa -interconnect and the very high ground:water recharge tax that they are no longer paying Or 'paying a minimal amount.The next section -of the budget-book ConsistS of one section on revenue and to sections on.the'operation side:'-the Administrative expenditures and the plant expenditures.The board approved an aggressive .increase a couple -of years ago on. rates. :When the city -toOk Over ;the district .there was an understanding that: 'rates would not - increase for' many which caused rates to lag. 14ow,board policy is 'to gradually increase the rates at 3% on a regular basis'.'•' Water Utilities Community Facilities District Meeting Minutes of June 19, 2012 Page 5 of 9 Vice Chairperson Dietz commented that was because they had not increased the rates at all for a,number of years and when they had a rate study they-Ctually needed a iit a 20% increase in rates to get them were they needed to be, but they decided to do a slow incremental increase instead. District Finance Manager John White said they decided from the numbers a consultant gave that a substantial rate increase was needed which was effectively structured to the point where the smaller low use customers received about an 8% increase and the tdgh use Customers had it averaged out to 20%.A couple years later they were still having some problems and.there was a, doble digit increase in 2008 to 2009 that allowed them to start funding the funded appreciation. They started going to a lower - increase a couple of years ago to 6% and the 3%.When they got their capital improvement plan the consultant did recommend a 3% • to 4 1r ncrease every year.The budget as presented has a 3% increase and a 2.8% increase in capital facilities fee' based on • the :construction consumer price index. There was a thorough :.stUdyback in 2008-2009 to establish the level of onnection -tees. They followed the practice at;:the'time'.in'thedevelopMent- .'fee lawt:hat'allowed cities and -munitioal .organizations to index ,the117 fees izing a 'nationally recognized index -when there -waS 'no. .s.tudy jaertormed He showed a rate tompa.rison of ho W' the _prcpcsed..3 94 would affect. An average customer using ,..1;000 a month would have a bill of $3800 a month. Under the LneWrates -the 'customer-1.S base tate wilIinCtease 54 -centS in his :tOnSUmption7rAte.beCauSe be is still under the 'life line rate :2;.1.evei&f .Se2,00 .gallons. • There is no increase and the'reMaining .a.mount'.of 'the bill:4S'taxes -It is' a -total of leSS'than a _dollar A Mtinth inCrease. Another customer who has A -larger meter :Size andhi *isting rate is -26:9 Will have -hi 8 base rate still go' up a.esS .thari.a dollar. His consumption rate is considerably This'Customer -has been in the top 1(A... of:residential CUstoMer use.,-but the rate still only :goes Up $1,64 And the -subtotal is '$2.45 :per month-atidaf r taxes comes up tb ..$2,7-0-: The syStem r::onnection'fees are the initial connection 'fees. They: have beemi:ndexed and 'recommended' t±be adopted for the single . family home,. Which is $3,400, a dwelling space' in' an RV park connection tee is $3,860 and a 'manufactured home i8 $3,190.' The budget book showed current 'and proposed rates:The budget must be-addpted'no.later than July 15; '2012 This is 'what is called Water. Utilities Community Facilities District Meetinq Minv.tes ot ,Tune 19, 20.12,. Page 6.!:-.)":• '•. •• .• the district treasurer's proposed bUdget and it is like the tentative budget. The next regular meeting date is July 3, 2012. In the district treasuker's budget, unl.k the city budget, the .board can raise the fees rather than having them capped.If ,the board feels that additional adjustments are necessary froin:what will be .presented'oh July 3, 2012 there is time to do that. Following the city's proposed budget schedule, staff is recommending that the final budget be adopted on August 2, 2012. These will be presented in the form of a formal motion on July 3, 2012 to formally adopt these dates.: District Clerk Kathy Connelly'.stated that the motiontonight covers-the. tentative and final, budget adoption dates, Vice Chairperson Dietz asked .what date they would like • for the public hearing. Distrdct Clerk Kathy Connelly stated whatever dates are picked fortentative•and final adoption have automatic public hearings. Vice .Chairperson-Dietz stated the tentative, budget adoption will beheld July -3, .2012; He asked if they have 'd public hearing •-after that. .District Kathy -Connelly 'stated there is -a public hearing .prior :to adopting the budget oh zuly-3,2012 which•is the'. :•tentative,bUdget'adoptidn and then anotherpubliC. hearing is required prior to adopting final budget which they May choose to do onAugust 7, 2012.This is the date that is suggested. District Director Frank Blanco showed pictures of the new water tar.ikbeing-Constructed.He Said -it was about 250 .cubiC Yards of cement:;, 500 tons of -cement and 25 trucklOadsCrf -cement. They should he seeingthe first panels of walls coming up soon. Chairperson Insalaco called for .a motion. •.Mrs. Barker MOVED THAT THE PUBLIC HEARINGS FOR TENTATIVE BUDGET ADOPTION 'BE HELD ON JULY a, 2012, AT 6:00 P.M. AND THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON AUGUST 7; 2012 AT 6:00 TO INCLUDE ANY REQUIRED PUBLIC HEARINGS ON PROPOSED CHANGES IN RATES AND FEES. Water Utilities Community Facilities District •Meeting Minutes • of June 19; 2012 - • •Page.? of 9 • 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 19th day of June, 2012.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 27th day of June,2012. .Kathleen Connelly District Clerk Water .Utilities .:Community Facilities District Meeting Minutes of June 19, 2012 - Page 9 of 9 THE HEARINGS.FOR BUDGET ADOPTION': SHALL BE HELD IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, .300 E SUPERSTITION BLVD;, APACHE JUNCTION, ARIZONA.. SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None.' DISTRICT LEGAL COUNSEL None'. •ADJOURNMENT' adourned:the meeting at 7:00 P. Chairperson Dietz ) .Chairperson Insalac.".o ACCEPTED THIS ..3RD -DAY OF 4pLy ,2012, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 3RD - 2012. ATTEST: DAY OF 411.ILY John 5.VELsaild-c6 Chairperson Water Utilities Community Facilities District Meeting, Minutes of June 19, 2012 Page 8 of 9