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HomeMy WebLinkAbout2013-08-06 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING AUGUST 6, 2013 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on August 6, 2013, 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 Barker Mrs. Evans Mrs. Rizzi Mr. Serdy Mr. Waldron Mr. Wilsn Staff Present: Others Present: Kathleen Connelly, District Clerk Frank Blanco, District Director Joel Stern, District Legal Counsel Giao Pham, Utility Director Donna Meinerts, District Treasurer John White, District Finance Manager Bryant Powell, Assistant City Manager Hazel Randall, Administrative Assistant Matt Busby, Assistant to the City Manager APPROVAL OF MINUTES OF July 2, 2013) Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 1 of 8 ) Mr. Waldron MOVED THAT THE MINUTES OF JULY 2, 2013, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2013-006, ADOPTING FINAL BUDGET FOR FISCAL YEAR 2012-2013 AND ADOPTING PROPOSED RATES, FEES AND CHARGES APPLICABLE FOR FISCAL YEAR 2013-2014 ) District Finance Manager John White stated he had nothing to add to the budget itself but would like to talk about rates.There are no rate changes proposed.However, there are two changes that would affect new services.These services are the capital fees that are charged and the water system connection fees.In 2008 these services were imposed and we have been increasing these fees on an index basis.This year's proposed increase is 2.7%.The increase comes to $100 each per single family, multi -family and manufactured homes.They need to insulate the existing customer base.Many communities have a water resource fee and they have talked to Carson Bise of Tischler Bise to help with a fee study. When they adopted the tentative budget there was an additional $655 for an equivalent dwelling unit.It is the equivalent of a single family dwelling.They did not take into account financing to get the Gila River Indian Community lease or the Central Arizona Project non -Indian agricultural water so they had to refigure the amount.They show $853 as an equivalent development unit.That has been included in the rate fee for new customers only, not the existing base.The increase is about 30% over the original proposed amount.For a single family unit the fee is $853 and for a multi -family unit $682. In addition to these fees there are four other categories for non-residential customer. Vice Chairperson Barker asked if these fees are in addition to the connection fee. Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 2 of 8 District Finance Manager John White stated they would be in addition to the connection fee. District Director Frank Blanco stated they did research on other cities and how they approach water resource acquisition fees.It is approached differently throughout the metropolitan area.Mesa has a water impact fee, a meter fee and a street repair fee.Water resource acquisition fee can be part of the water impact fee.Chandler has a water impact fee, a resource fee and a front foot of lot fee.The system connection fee is separate from the water resource fee. Vice Chairperson Barker asked if Mesa had a new connection fee in addition to other fees. District Director Frank Blanco stated it would be included.The water impact fee, meter fee and street repair fee are included in their $5,200 amount. Vice Chairperson Barker asked if all these fees would be included in the water district's fee. District Director Frank Blanco stated the one city that compares well to the water district in the way they approach the water resource acquisition fee, system connection fees and meter fees is the Town of Gilbert.The water district's proposed fees for single family system connection is $4,064 which includes the meter fee which was not included before.Water resource acquisition fee is at $853 for a total of $4,917 for a single family unit.When this is compared to the town of Gilbert, their system connection fee is a little over $5,000.The water resource fee is $1,355 and the total is $6,397.The water district system connection for multi -family dwelling is $3,914 and water resource acquisition fee is $682 for a total of $4,096.This is higher than the Town of Gilbert, so although the water district single family residential connection is lower, their multi -family connection is higher.This was originally established back in 2008 by the Tischler Bise study. Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 3 of 8 Mr. Wilson asked if it was a multi -family meter fee per dwelling or if it was per the number of families living in apartments or other. District Director Frank Blanco stated the actual system connection fee is per unit. Vice Chairperson Barker asked what the street repair fee was for. District Director Frank Blanco stated that is for any street repair that was required when a new customer comes in after the subdivision has been built and they have to cut into the street and run a line.In terms of growth, they still remain competitive with surrounding cities even if we have an additional water resource acquisition fee.It does not take them any higher than any of the other cities. Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2013-006, 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, 2013 AND ENDING JUNE 30, 2014; DECLARING THAT SUCH SHALL ESTABLISH THE BUDGET FOR THE WATER UTILTIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION) FOR FISCAL YEAR 2013-2014, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULES FOR FISCAL YEAR Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 4 of 8 2013-2014 ) Chairperson Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and moved on to the next item. RESOLUTION NO.2013-007, RE -ADOPTING ALL EXISTING RATES AND CHARGES FOR FOR FISCAL YEAR 2012-2013 INCLUDING NEW RATES FOR MONTHLY BASE SERVICE FOR FISCAL YEAR 2013-2014 Vice Chairperson Barker stated that a 3% rate increase per year was set up several years ago in order to have consistency and not have to hit a wall. She asked if not raising the rates this fiscal year would jeopardize that consistency. District Director Frank Blanco stated they reviewed that and felt it was safe to not have a consumption rate increase but still keep the capital system connection fee increasing at the rate they are.They do not feel it will negatively impact them primarily because they are still increasing the other fees.They are just not raising the consumer rates. Assistant City Manager Bryant Powell stated they have to consider the future by thinking forward and not getting too far behind on fees. Vice Chairperson Barker stated she hoped they would not have to ever go over the 3%.It seemed to be palatable to the consumer and seemed to work.She would hate to see them get back into a position where they have to put the burden on the consumer. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2013-007, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) RE -ADOPTING ALL EXISTING RATES, FEES AND CHARGES FOR FISCAL YEAR 2013-2014 INCLUDING NEW RATES FOR MONTHLY BASE SERVICE, CONSUMPTION SERVICE AND METER INSTALLATION FEES, SYSTEM CONNECTION FEES, WATER RESOURCE Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 5 of 8 ACQUISITION FEES, STAND PIPES, FIRE HYDRANT METERS AND GENERAL SERVICE CHARGES, AND ESTABLISING AN EFFECTIVE DATE, BE APPROVED. Mr. Waldron SECONDED THE MOTION VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated he wanted to show some of the work the crews had been doing on Grand and some of the other streets that are being paved.There was a service line that was less than two inches underground and the requirement is 30 inches below grade by the Maricopa Association of Governments standards and specifications they abide by.They have been working very hard in 110 degree heat in the trenches doing a good job.It is challenging for them because they are running into some issues.There was a line that came out of the main when they were trying to lower it.He showed an example of one of the pipes.They are showing good progress and the estimated completion time the supervisor gaVe was next week.The other system infrastructure wells are operating normal.The two that are being used at the interconnect facility are operating normally.They are making good progress installing a supervisory control and data system.Often they get a request to abandon a public utilities easement that is not being used by the water district.They received one from Golden Vista which is under evaluation.It has formally been requested or has already been done.It has to do with a lot that may have a 3 -foot easement running along the side of it or on the back of it.They are typically in recreational vehicle facilities and they are already encroaching into the 3 -foot easement and it makes no sense to keep an easement when they do not need it or extinguish it when they have a need for it.They have done this in the past at Roadhaven Resort and Shiprock.They have Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 6 of 8 received three other requests which are in the city limits but not in the water district's service area.There may be an interest for the city to maintain these easements.They have an option of extinguishing them or refusing.Typically they would not refuse it but they do have the option of looking at it to make sure it is not something where someday there may be a large trunk line the water district may.want to build.In that case, it would have to be bought back.He will be coming back to the board in September to request some of the easements extinguishing some of these easements and will have additional information and graphs. DISTRICT TREASURER REPORT None. ADJOURNMENT ) ) Chairperson Insalaco adjourned the meeting at 6:24 p.m. ACCEPTED THIS 17TH DAY OF SEPTEMBER , 2013, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 17TH 2013. ATTEST: Kathleen Connelly District Clerk DAY OF SEPTEMBER 1/7 ez-e/ext) .ablin S. Irisalaco 6hairperson Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 7 of 8 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 6th day of August, 2013.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of August, 2013. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 6, 2013 Page 8 of 8