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HomeMy WebLinkAbout2013-11-19 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING NOVEMBER 19, 2013 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on November 19, 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 (arrived at 6:03 p.m.) Mr. Serdy Mr. Wilson Staff Present: (Mr. Waldron was absent.) George Hoffman, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director Joel Stern, District Legal Counsel Giao Pham, Utility Director Frank Blanco, District Director Donna Meinerts, District Treasurer John White, District Finance Manager Michael Loggins, District Superintendent Others Present:Bryant Powell, Assistant City Manager Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 1 of 7 APPROVAL OF MINUTES OF SEPTEMBER 17, 2013) ) Vice Chairperson Barker MOVED THAT THE MINUTES OF SEPTEMBER 17, 2013, BE APPROVED. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. District Clerk, Kathleen Connelly, stated there was no October 15, 2013 meeting because there was no quorum and therefore no minutes in the future for this meeting.The items that were on the agenda for the October 15, 2013 meeting were put on the November 19, 2013 agenda. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco talked about the consideration of a future resolution to change the name of Apache Junction Water Community Utilities Facilities District by adopting the name Apache Junction Water District.He stated the service area boundaries for the water district were adopted in the year 1994. He would like to adopt a policy for establishing service area boundaries or defining new service area boundaries in Apache Junction that are not being serviced by Arizona Water Company. Arizona Water Company boundaries are regulated by the corporation commission.The water district boundaries are not regulated by the corporation commission because it is not a private water company.A governmentally -owned utility service area is self -declared.A future resolution will be brought back to the water board for setting a policy on identifying and resetting any future water district boundaries.The reason for this is to avoid any future confusion as to how they determined who is the water provider for a particular area as development occurs, especially on state land.New water rates became Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 2 of 7 effective October 1, 2013.There was no increase for the water base service charge or the water consumption rate.This means current customers did not receive a rate increase for the year 2013-2014.It was less than a 396 rate increase for service, meter installation and system connection fees for new customers. The water district would like to do a new rate study next year to determine if they should have a rate increase in the future. They have a new water resource acquisition fee.The fee is for new water for future growth.The Water Supply Development Cooperation Agreement is an agreement that does not bind the water board to any action.It is an agreement that is signed at the director's level.It is an agreement for the water district to be able to work with Salt River Project, Town of Queen Creek, Roosevelt Water Conservation District and Arizona Water.The agreement is to help them look at opportunities for enhancing their operational regional water supply, such as water exchanges or building supply corridors.The Red Mountain Water Exchange Agreement has been put on hold primarily because Red Mountain did not want to pay their portion of Central Arizona Project water they use.Central Arizona Groundwater Replenishment District has approached several entities regarding the purchase of long-term storage credits.Some of these entities were Tucson, Goodyear and Litchfield Park.The Central Arizona Groundwater Replenishment District asked the water district to meet with them to discuss how the purchase of long-term storage credits would work.This could be a future water policy decision that would come back to the board once the water district has additional information on quantities of water and what the value of the water would be.It could mean potentially a significant amount of money the water district could use by selling long-term storage credits to them.District Director Frank Blanco and Water Attorney Bill Anger had a meeting with the Arizona Department of Water Resources to learn how Arizona Department of Water Resources will be looking at a future intergovernmental agreement with the City of Mesa.The current agreement expires in 2016.Originally, Arizona Department of Water Resources during the re -designation of assured water did not count the water Mesa was treating for the water district assurance of water.A long-term contract is what the water district will need in order to consider a future agreement with Arizona Department of Water Resources.A future intergovernmental agreement with Mesa would allow them the Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 3 of 7 ability to treat Central Arizona Project water for the water district if the water district were to have a water treatment plant that was out of commission or if a well were to fail. Chairperson Insalaco asked how many years the long-term agreement would be for. District Director Frank Blanco stated 10 to 15 years. The sewer district intergovernmental agreement expires in 2015 and he asked the Arizona Department of Water Resources how they view this agreement in the future.The water district received some credits for the effluent credits they purchased from the sewer district.However, since this agreement expires in 2015 there is an opportunity for the water district to make some deal points that would be beneficial for the water district.One of the main issues is a restriction on how the water district in the future or whoever has this utility can use the credits purchased from the sewer district.The only way these credits could be used would be to replenish groundwater or to trade them with another municipality.The water district has learned there is a monetary value to these credits and in the future there will be a larger market for these credits.The water district would like to own credits without any restriction on how they are used. District Clerk Kathleen Connelly stated it took a while to do the Mesa intergovernmental agreement before. One of Mesa's principles, Katherine Sorenson, has taken another job with another jurisdiction.It may take even longer than before to do an intergovernmental agreement with Mesa. District Director Frank Blanco stated Central Arizona Project water can be used in lieu of long-term storage credits.The way the water district's designation was declared there is a portion of long-term storage recovered credits.In lieu of using these credits towards the water district's designation of assured water, the Arizona Department of Water Resources did agree they could use an alternate supply such as Central Arizona Project water.If they can conserve the long-term storage credits and use them for another reason other than for recharging or replenishing then they can control and manage the use of the credits as assets.The Supervisory Control and Data Acquisition Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 4 of 7 system provides real-time information and works with a human/machine interface.The software used is Rockwell Automation and hardware is programmable logic controllers made by Allen Bradley.The human/machine interface is Factory Talk and has the ability for remote web base access.Rockwell Automation has been involved in some very large water treatment plants in Europe and the United States. District Superintendent Mike Loggins used a power point presentation to explain how the Supervisory Control and Data Acquisition system works.They can remotely check on booster systems and water levels at each location.The water district can start and stop the booster systems remotely or set them to start and stop automatically.They can look at graphs of when wells start and stop, their flow rates and tank levels so they can determine where maintenance needs to be performed before they have an emergency.This includes the interconnect with Mesa.They monitor the pressure at this site so they do not go below the pressure amount they have in their agreement with Mesa. District Manager George Hoffman asked if the system was internet based. District Superintendent Mike Loggins stated this part of the program is.The radio signals go back to a master computer. This is part of software that allows them to log into the computer remotely and monitor it.They bought air cards so that their operators can take a laptop with them, go out to any site and see if a well is running or start and stop a well.In order to access the system a person must go through the city's firewall, the water district's firewall and have a password. District Director Frank Blanco stated they are going to focus on maintenance more.The steel tank on Baseline is in bad shape. The tank has a lot of corrosion in it and on the roof.It has been drained and cleaned in order to get it ready for a project in the future which will involve coating the tank.Some projects used to require outside help.They cannot afford outside help and feel their crew will be able to take care of the tank.He believes this will help the crew appreciate the equipment more and be more aware of what is going on.The Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 5 of 7 Supervisory Control and Data Acquisition system is an tool and enables the water district to do their jobs. Vice Chairperson Barker asked what they were going to steel tank with. important coat the District Director Frank Blanco stated it will be sand blasted to remove the old coating.Some areas on the floor will have to be patched.They will coat it with a product called Tnemec which meets the National Science Foundation approval for coating that is apoxy-based.It can come in contact with drinking water and not release any toxic chemicals.They hope to have the project started in early 2014.They are continuing to have meetings with stakeholders regarding the backf low program.They are planning a press release before the end of 2013 and will be sending letters to customers by early 2014 regarding the backf low program.The backf low program is to keep drinking water safe from contaminants from the outside.It is mandated by the Arizona Department of Environmental Quality and rules are set up by the Environmental Protection Agency.They have changed the date of the Apache Junction Water Festival to April 23, 2014. DISTRICT TREASURER REPORT • None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:30 p.m. ACCEPTED THIS 17TH DAY OF DECEMBER , 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. DAY OF DECEMBER bhn S. Insalaco Chairperson Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 6 of 7 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 19th day of November, 2013.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 25th day of November, 2013. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 19, 2013 Page 7 of 7