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HomeMy WebLinkAbout2014-08-05 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING AUGUST 5, 2014 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on August 5, 2014 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 Mr. Serdy Mr. Wilson Mr. Waldron Staff Present: Others Present: (Mrs. Rizzi was absent.) George Hoffman, District Manager Frank Blanco, District Director Joel Stern, District Legal Counsel John White, District Finance Manager Michael Loggins, District Superintendent Donna Meinerts, District Treasurer Giao Pham, Utility Director Bryant Powell, Assistant City Manager Matt Busby, Assistant to the City Manager Janet Mason, Deputy City Clerk Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 1 of 11 APPROVAL OF MINUTES OF JUNE 17, 2014 ) Vice Chairperson Barker MOVED THAT THE MINUTES OF JUNE 17, 2014, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PRESENTATION AND DISCUSSION ON ESTABLISHING A DEFERRED COMPENSATION PLAN WITH NATIONWIDE RETIREMENT SOLUTIONS. ) District Finance Director Frank Blanco stated currently the city has both ICMA and Nationwide as deferred compensation plan providers.The district only has ICMA and they would like to request that the district have the same deferred compensation plan options as the city by establishing a deferred compensation plan with Nationwide Retirement Solutions. Vice Chairperson Barker asked for more information about the deferred compensation plan with Nationwide Retirement Solutions. Mr. Jim Keeler from Nationwide Retirement Solutions briefed the board on Nationwide's deferred compensation plan.He stated it is for public employees and is their voluntary supplemental pretax retirement plan.It is an IRS guideline 457 so it is for government employees that allows employees to put additional money aside through payroll on a pretax or after tax basis to supplement their pension system.They administer to all the counties and state. RESOLUTION NO. 2014-009, A RESOLUTION ESTABLISHING A DEFERRED COMPENSATION PLAN FOR THE WATER DISTRICT WITH NATIONWIDE RETIREMENT SOLUTIONS. Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 2 of 11 ) Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2014-009, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), ESTABLISHING A DEFERRED COMPENSATION PLAN FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), WITH NATIONWIDE RETIREMENT SOLUTIONS BE APPROVED. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROFESSIONAL SERVICES AGREEMENT WITH CAROLLO ENGINEERS FOR SURFACE WATER TREATMENT PLANT ENGINEERING/ CONSULTING SERVICES ) District Director Frank Blanco stated it is a professional service agreement for the district's first water treatment plant. District Superintendent Mike Loggins did a brief overview of how they obtained a consultant based on who had the best qualifications.They had a six member panel pick the top three companies with the best qualifications. Carollo Engineers was selected. They have done several projects and are the best qualified for plant engineering/consulting services for the district.Carollo Engineers has been doing water treatment plants in Arizona since 1933.They did the first Central Arizona Project water treatment plant in the valley. Vice Chairperson Barker asked how the water treatment will be processed once the plant was finished. District Superintendent Mike Loggins said there are several processes that can be used to treat the water.Carollo Engineers will do a 20 -year cost life Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 3 of 11 cycle for the district to determine which type of water treatment plan would be the most cost effective. Assistant City Manager Bryant Powell asked why this information is not known now. District Superintendent Mike Loggins said it depends on the water quality that is out there and what type of bids come in for water treatment.Carollo will start their analysis by looking at the Central Arizona Project water treatment. District Director Frank Blanco stated the reason the district does not have the actual process yet is because they are relying on Carollo Engineers expertise to come up with the process that will work for the district.Carollo is just finishing up a project for the Ak- Chin Indian Community which is very similar to the one the district needs them to do.They are very familiar with what the district wants. Chairperson Insalaco called for a motion. Mr. Waldron MOVED THAT THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA)AND CAROLLO ENGINEERS FOR PROVIDING SURFACE WATER TREATMENT PLANT ENGINEERING/CONSULTING SERVICES IN AN AMOUNT NOT TO EXCEED $632,542.00 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AUTHORIZATION TO PURCHASE THE VEHICLES THROUGH CHAPMAN FORD ON THE COOPERATIVE STATE CONTRACT Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 4 of 11 )District Superintendent Mike Loggins stated the district budgeted for two new service vehicles to replace two that have over 100,000 miles on them and over five years old.The city public works department, who does the district's vehicle maintenance, suggested they get two of the vehicles replaced.They will be using their contract with the state to purchase the vehicles. Chairperson Insalaco asked if the vehicles being replaced are worth anything. District Superintendent Mike Loggins stated they would be auctioned off at the state auction. Chairperson Insalaco called for a motion. Mr. Waldron MOVED THAT THE PURCHASE OF TWO NEW REPLACEMENT FORD F-250 TRUCKS THROUGH CHAPMAN FORD ON THE COOPERATIVE STATE CONTRACT #ADSPO 12-016662 IN AN AMOUNT NOT TO EXCEED $66,531.76 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AUTHORIZATION TO PURCHASE VACUUM THROUGH VERMEER ON THE NATIONAL INTERGOVERNMENTAL PURCHASING ALLILANCE CONTRACT. )District Superintendent Mike Loggins stated a backhoe is a hard dig tool used to rip something out of the ground.The VX30 suction vacuum is basically a large vacuum cleaner that water is added to and dirt is sucked out of the ground.If a wire is hit or another pipeline it will not bust through it.The vacuum was in this year's budget.They already have one that is a smaller unit. Chairperson Insalaco called for a motion. Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 5 of 11 Vice Chairperson Barker MOVED THAT THE PURCHASE OF A BUDGETED VX30 SUCTION VACUUM THROUGH VERMEER ON THE NATIONAL INTERGOVERNMENTAL PURCHASING ALLIANCE CONTRACT #070313-VRM IN AN AMOUNT NOT TO EXCEED $48,876.52 BE APPROVED. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco presented an emergency response plan in case of power outages.Back on February 7, 2012 the district and Arizona Water Company looked at the city's whole water production capacity, the storage capacity and the booster stations.Booster stations are the ones that pressurize the water within the distribution and transmission mains.When the district looks at the water capacity during a power outage it is somewhat less than it is on a normal basis.The district's water capacity is 1.6 million gallons per day in wells and 5 million gallons per day from Central Arizona Project water. Without the energy to be able to run well #6 during a power outage it reduces the capacity to .9 million gallons per day and the five million gallons of water per day from Central Arizona Project interconnect because the district has a backup generator at that location.There is a water storage capacity of 4 million gallons located at the Baseline location in two water tanks and from the Buena Vista and 16th Avenue reservoirs.One thing that the district does not have is gravity feed from their storage tanks so all the water they deliver has to be pumped. Arizona Water Company does have some gravity feed because their storage tanks are a little bit elevated.At the district's booster sites, one booster site has a generator and one booster site does not.The booster station at 16th Avenue and Buena Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 6 of 11 Vista has a generator and the one at Baseline does not.Water demands during power outages, if the city is using water at a normal range, is a capacity of 5.9 million gallons per day. This would be the amount from the interconnect which has a generator and from well #5 which also has a generator.The average daily demands from residents is 1.7 million gallons per day.The water storage capacity the district has is about 4 million gallons and the water demand is 1.7 million gallons per day.This gives a potential availability of 2.7 days of water for the city and, combined with Arizona Water, totals 2.8 days of water.This is assuming that water would be consumed the way it normally is.When the district loses power it becomes a problem.They have a reduced ability to deliver water and depending on how long the power outage goes it can turn into more of a problem than the district normally sees when the district looks at their gallons per capita per day.In the year 2013 the district's gallons per capita per day was 109 gallons per person per day which includes outdoor landscaping, laundry and everything else.On emergency preparedness websites such as ready.gov which is affiliated with FEMA it recommends a minimum of 1 gallon of water per person per day and also recommend a three day supply. Mr. Wilson stated that if a person has animals such as horses they would need 35 to 40 gallons per day per animal. Water Superintendent Mike Loggins explained what generators the district has.At well #5, which provides half of the production of their wells, there is a backup generator.There currently is not a generator at booster station two and well #6 but they are planning to purchase and install one from this year's budget. There is a generator at booster station one that can keep the pressure if they have a power outage.They have a generator at the Mesa interconnect so they can still receive Central Arizona Project water upon a power outage.The district has maintenance contracts with Titan Power which maintains the city's generators also.They come out semi-annually, check the generators and make sure everything is running.Currently there is enough power from the generators to run the pumps.Each week the district starts running the program for 15 minutes to make sure the generators are running properly.Right now their generators have a load capacity of 24 hours.If there is a power outage of more than 24 hours the district has an agreement with public Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 7 of 11 works to use their diesel supply vehicle to run diesel fuel to the generators so they can keep running for a longer period of time.The district had a pressure issue which started from a power outage at booster station two and there is no backup supply there.They do have a battery backup that runs the computer and tells the pumps when to turn on and off but after an hour it fails.When the computer failed it put everything back in manual mode and did not know when to turn the pumps on or off.They did not realize this and the next night there was another power outage at booster station one which caused the generator to start up but the generator did not have enough power to produce the pressure needed to keep the pumps running like they needed to.Someone has to go and manually re -set the system to get the pumps turning on and off at the booster stations when there is a power outage and the power comes back on.They are in the process of coming up with a protocol to answer phone calls that may come in from people who are concerned about their water due to an outage.The district had a programmer come out to booster station two and they reprogramed the system so that if it was on auto before the power outage it will restart back in auto again instead of manual once the power is back up.They had an electrician come out to booster station one to fix the issue of a power spike tripping the pumps out so the generator could come on and run smoothly. Assistant City Manager Bryant Powell wanted the district board members to be aware of the situation and that there were two phone calls regarding the power outage from residents. Those were taken care of. Mr. Serdy asked if there was a way to have reverse 911 to let residents know of a water issue.He asked if there is a place where people can take their animals or manually fill tanks for water if there is water issue for an extended period of time. District Director Frank Blanco stated the reverse 911 has been used in the past when they were flushing an area for brown water or yellow water complaints.It worked somewhat but the problem the district has with using reverse 911 is using it in the middle of the night.The district has the reverse 911 in place and has worked with the chief of police to use reverse 911 calls.The district has a raw water pump station at Baseline Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 8 of 11 and Central Arizona Project canal and some water haulers, mostly contractors use it for dust control.There is a portable station that is a clean water hauler station next to the animal shelter.When the district has a generator at well #6 or the Baseline tank that will be available as well to get water. Mrs. Evans asked if the district has ever looked at adding solar in case of a power outage to let the generators have time to kick on or let the computer system get up and running. District Superintendent Mike Loggins stated that within a minute the generators are up and running.The district has looked at solar as a green energy source but not to supply them during start and stop generator times since it is such a short period. District Director Frank Blanco stated there is a treatment plant with a lot of solar panels.The City of Tempe has one at the 101 and Guadalupe.The solar panels basically help run the administration building and are not capable of providing enough power for the treatment plant itself.He described what a groundwater savings facility is and that the district will be coming back to the board in about a month to vote on a resolution for an intergovernmental agreement between the water district and Roosevelt Water Conservation District to develop some long-term storage credits by allowing them to use the district's Central Arizona Project water to irrigate their crops in lieu of running wells.The way the groundwater saving facility works is that the district places an order for Central Arizona Project water by the first of October each year.The groundwater savings facility would be the Roosevelt Water Conservation District taking delivery of the Central Arizona Project water in lieu of pumping groundwater.They do not run the wells.They save groundwater which is essentially why it is called a groundwater savings facility. Vice Chairperson Barker asked if the district received storage credits for doing this. District Director Frank Blanco stated the Arizona Department of Water Resources credits the district for having used the Central Arizona Project water in lieu of groundwater to irrigate their crops.They pay the district a little bit of money for using the Central Arizona Project water.It covers some Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 9 of 11 administrative costs.An underground storage facility is different.The district has a permit to store water at the Superstition Mountain Recharge Facility at Ocotillo and the Central Arizona Project Canal.When the district uses an underground savings facility they have to pay to store the groundwater at the facility, unlike the groundwater savings facility that pays them a little for using their water.The plan is to have both available.The underground storage facility takes Central Arizona Project water delivery and stores the Central Arizona Project water for the district underground. He went over a diagram showing where the Roosevelt Water Conservation District's groundwater savings facility is located. DISTRICT TREASURER REPORT District Finance Manager John White stated on July 25, 2014 the district transferred approximately $3,096,000 to the Gila River Indian Community to execute the 1,000 acre feet lease for the 100 year period. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:40 p.m. ACCEPTED THIS / 6 71*V DAY OF jotrgi-I4445-=-AL , 2014, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS / 6 1r4 DAY OF 014.111Xf, 2014. John kvu Insalaco Chairperson ATTEST: 9et-aze_e„ Kathleen Connelly District Clerk Water Utilities Community Facilities Meeting Minutes of August 5, 2014 Page 10 of 11 District 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 5th day of August, 2014.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 14th day of August, 2014. athleen Connelly District Clerk 264 ee,i, Water Utilities Community Facilities District Meeting Minutes of August 5, 2014 Page 11 of 11