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HomeMy WebLinkAbout2014-11-18 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING NOVEMBER 18, 2014 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on November 18, 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 Mrs. Evans Mr. Serdy Mr. Wilson Mr. Waldron (Mrs. Rizzi arrived at 6:08 p.m. and Vice Chairperson Barker was absent) Staff Present:Frank Blanco, District Director Joel Stern, District Legal Counsel John White, District Finance Manager Michael Loggins, District Superintendent Kathleen Connelly, District Clerk Giao Pham, Utility Director George Hoffman, City Manager Bryant Powell, Assistant City Manager Others Present:Andria Samuels, Administrative Assistant APPROVAL OF MINUTES OF SEPTEMBER 16, Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 1 of 13 2014 ) Mr. Waldron MOVED THAT THE MINUTES OF SEPTEMBER 16, 2014, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO. 2014-013, AUTHORIZING AN AGREEMENT WITH SALT RIVER VALLEY WATER USERS' ASSOCIATION FOR STORAGE OF WATER AT THE SALT RIVER VALLEY USERS' ASSOCIATION GROUNDWATER SAVINGS FACILITY ) District Director Frank Blanco stated the resolution is an agreement with Salt River Valley Water Users' Association.It pertains to their groundwater savings facility.Salt River Valley Water Users' Association is governed by and under the umbrella of Salt River Project.It is the water side of Salt River Project.The resolution authorizes the district manager or board chair to execute any necessary agreements or documents for storage of Central Arizona Project water.The agreement would be between Salt River Valley Water Users' Association and the water district.The agreement enables the water district to store Central Arizona Project water at the Salt River Valley Users' Association Groundwater Savings Facility.As mentioned in past meetings, the groundwater savings facility is different than the groundwater storage facility.The difference in this case is that the water district is delivering Central Arizona Project water to an area that would otherwise be irrigated.In lieu of irrigation, they are using the Central Arizona Project wells to irrigate the area.The resolution promotes the beneficial use of the water district's Central Arizona Project water.It delivers Central Arizona Project surface water for irrigation to the groundwater savings facility to be used in lieu of groundwater pumping by Salt River Project.Instead of Salt River Project pumping wells to irrigate those areas, they are using some of the Central Arizona Project water allocated to the Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 2 of 13 water district to irrigate those lands.Stored water can be recovered as Central Arizona Project credits through district wells in the future.Essentially, Central Arizona Project water is replenishing the area that is being farmed and currently being irrigated with wells.It is a benefit to the land that is being irrigated as well as to the water district.The recovered credits can be used to offset cost for replenishment. Currently, replenishment cost through Central Arizona Groundwater Replenishment District is in the area of $508 per acre foot.The Central Arizona Project delivery cost is $146 per acre foot.By having the Central Arizona Project water delivered to the groundwater savings facility the water district is saving the difference between $508 and $146 per acre foot. Additionally, the Salt River Valley Water User's Association pays $25 per acre foot back to the water district.It is a win- win for the water district and Salt River Project. Mr. Serdy asked if they use well water to irrigate. District Director Frank Blanco stated they irrigate with well water or groundwater. Mr. Serdy stated he understands using river water to irrigate but does not think it is right to irrigate with well water. District Director Frank Blanco stated it is their own well water and they had their own water rights to do it.This is why it is a good solution to their problem by using the water district's Central Arizona Project water locally.Then the water district can eliminate the underground pumping and start replenishing the groundwater table as well. Mr. Wilson asked where the facilities are located. District Director Frank Blanco stated they are located within the Phoenix Active Management Area.The Salt River Project is much closer to the water district than Tonopah.Although the water district could recharge in Tonopah and still get credits, the water district is Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 3 of 13 choosing to partner with Salt River Project and begin replenishing the groundwater aquifer that is closer to Apache Junction.There is no proven information at this time that states the water district is improving their aquifer where they take their water from but it is much closer to the East Valley. It is the reason for partnering with Salt River Project versus partnering with some place out west such as Tonopah. Mr. Wilson asked when the water district starts using the Central Arizona Project water themselves are they obligated to continue using Central Arizona Project water or can they discontinue at any time. District Director Frank Blanco stated they would not be held to continuing this process. There is an out in the agreement. District Legal Counsel Joel Stern stated the agreement has not been signed yet, but he believes it is discretionary.If the water district feels they are not getting what they wanted out of it they can terminate it. District Director Frank Blanco stated there is either a 30 day notice or a 15 day notice. District Legal Counsel Joel Stern stated he thinks it is a 30 day notice so the water district would have to give them a 30 day notice to terminate. District Director Frank Blanco stated at the time of termination the water district could begin using their Central Arizona Project water for deliveries. RESOLUTION NO. 2014-013, A RESOLUTION AUTHORIZING AN AGREEMENT WITH SALT RIVER VALLEY WATER USERS' ASSOCIATION FOR STORAGE OF WATER AT THE SALT RIVER VALLEY USERS' ASSOCIATION GROUNDWATER SAVINGS )Chairperson Insalaco called for a motion. Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 4 of 13 Mr. Waldron MOVED THAT RESOLUTION NO. 2014-013, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING AN AGREEMENT WITH THE SALT RIVER VALLEY WATER USERS' ASSOCIATION FOR STORAGE OF WATER AT THE SALT RIVER VALLEY WATER USERS' ASSOCIATION GROUNDWATER SAVINGS FACILITY, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO. 2014-014, AUTHORIZING AN AGREEMENT WITH THE ROOSEVELT WATER CONSERVATION DISTRICT FOR STORAGE OF WATER AT THE ROOSEVELT WATER CONSERVATION DISTRICT GROUNDWATER SAVINGS FACILITY ) District Director Frank Blanco stated this is resolution is essentially the same type of resolution as Resolution No. 2014-013.The difference is the agreement is with the Roosevelt Water Conservation District instead of the Salt River Valley Water Users' Association. Roosevelt Water Conservation District is not a new partner.The water district had a partnership with them before 2007.The water district is renewing a partnership with them to store some groundwater at their groundwater savings facility.The resolution also authorizes a district manager or board chairperson to execute any necessary agreements or documents for storage of Central Arizona Project water between Roosevelt Water Conservation District and the water district.The agreement enables the water district to store Central Arizona Project water at the Roosevelt Water Conservation District groundwater savings facility.The Roosevelt Water Conservation District groundwater savings facility is near the water district in the East Valley.The benefits of the agreement for the water district are very much the same as they are with the Salt River Project agreement.It allows areas to be irrigated with Central Arizona Project water instead of groundwater pumping by the Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 5 of 13 Roosevelt Water Conservation District.The stored water can be recovered as Central Arizona Project credits through the district wells in the future.When the water is stored at a groundwater storage facility it retains the category of water source.If it is Central Arizona Project water that is stored, when you recover the water it is recovered as Central Arizona Project water.Essentially when the water district pumps their wells, even though it is coming out of the ground, the water is considered Central Arizona Project water so water does not have to be replenished.Recovering the credits offsets the replenishing cost of $508 per acre foot.The Roosevelt Water Conservation District payback is $20 per acre foot back to the water district.It is just a little bit less than Salt River Project's payback. Chairperson Insalaco called for a motion. Mr. Waldron MOVED THAT RESOLUTION NO. 2014-014, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILIITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING THE DISTRICT MANAGER, AND/OR BOARD CHAIR TO EXECUTE AND IMPLEMENT AN AGREEMENT WITH THE ROOSEVELT WATER CONSERVATION DISTRICT FOR STORAGE OF WATER AT THE ROOSEVELT WATER CONSERVATION DISTRICT GROUNDWATER SAVINGS FACILITY BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco showed a map where the Central Arizona Project groundwater storage facility is located. Roosevelt Water Conservation District is to the east of it.He Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 6 of 13 gave an update on the progress the water district has made with Central Arizona Project and the intergovernmental agreement with the City of Yuma.The City of Yuma has some equipment they no longer are using which has some potential use by the water district.The equipment has not been used by the City of Yuma for two years and could save the water district quite a bit of money.There is a possibility of having an agreement with the electric side of Salt River Project to provide dual feeds to the future water treatment plan.Providing dual feeds would provide the water district with redundancy in case a part of Salt River Project's grid went out.The water district would then receive power from a different portion of the Salt River Project grid. The water district met with Salt River Project to discuss what the cost might be versus having the water district use their own generator on site to provide similar service.At the last board meeting they discussed possibly having a sole source for their treatment package for the water treatment plant.The water district met with their legal counsel and were directed to a different process which was a pre -selection process for the treatment system.By going with the pre -selection process the water district is accomplishing the same goal of identifying the treatment process itself, or the module.By getting this information beforehand the engineer can complete the plans 100%. It saves the water district some money due to some unknowns in terms of if the water district selects a certain module that needs to fit in a location and then the piping is going to change, the water district does not know what it is ahead of time.If that information is available to the bidder they can get good bids on it.This is the reason they want to first identify the treatment system or module itself instead of going into it not knowing what to expect in terms of the bidding, pricing and things of that nature.He showed an overview of the City of Yuma Main Street Water Treatment Plant.The water district is requesting suggestions on what to name the water district's Central Arizona Project water treatment plant.The Yuma plant treats river water off the Colorado River.The water is similar to the water the district will be treating except the district treats Central Arizona Project water.Yuma has four cone bottom water tanks which would be utilized in the water district's water treatment process.The tanks were only used for about two years and have been sitting for another two years. Yuma is in the process of selling this equipment which includes tanks and a conveyor belt.The vendor of the equipment made Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 7 of 13 contact with the water district to let them know Yuma was possibly interested in selling the equipment.It is unique for Yuma to surplus the equipment because it would probably go into a scrap yard because it is specialized.The equipment can be used for the water district water treatment process.The conveyor belt would be used to move some of the sludge.The sludge is a byproduct of dewatering by taking some of the mud and organics out of the water during the treatment process and needs to be hauled off the site.The equipment was used for the same purpose; for solids handling for about two years.The process was an interim process that was replaced by drying beds. The reason why it was an interim process is because the City of Yuma originally had drying beds.Drying beds are large open areas about the size of a football field which are three to four feet in depth.The sludge is pumped out to that area and is allowed to dry and is then disposed of instead of being run through a different process of using a belt press, which is what the water district is looking into doing.A belt press squeezes the water basically out of the solids, separating the solids from the water; then hauling off the solids.The equipment was used by Yuma until the drying beds were replaced and built in another location.They were displaced because of a new hotel that was built in the area next to the water treatment plant.The plan would be to dismantle and ship the equipment and store it by the original supplier until needed.The four tanks are 7,500 gallon tanks each and are cone bottom tanks with support stands.It would be about $20,000 to purchase all four tanks.The solids conveyor belt with the support structure and accessories is about $40,000.The proposed total cost of the Yuma equipment in the intergovernmental agreement is $60,000. The approximate cost for new equipment is about $160,000.The water district will be coming back to the board in December requesting they be able to take advantage of this savings and be allowed to enter into the intergovernmental agreement. Mr. Serdy asked if that included the costs for dismantling the equipment and storing it. District Director Frank Blanco said the cost for dismantling and storing the equipment is $17,500 and includes a one year warranty.Total cost for the equipment would include paying the original vendor to dismantle the equipment, ship it to Apache Junction, store it if needed and then provide a one year Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 8 of 13 • warranty once Apache Junction starts using it.The total cost is $77,500. Mrs. Evans asked why Yuma went back to the drying beds and discontinued using the system. District Director Frank Blanco said Yuma's water treatment plant has a large foot print or large area.Where the water district proposes to put the water treatment plant they do not have the advantage of a large area or large foot print to send the water out and allow it to dry out.It takes more time.They have found at the well #6 facility that there are drying beds they have not successfully been able to dry out.They have had to use Cooper's to pump the sludge.Then that goes to the wastewater plant where they treat it, recharge it and the water district gets the effluent credits from them. District Superintendent Mike Loggins gave an update on the design of the Central Arizona Project water treatment plant.On November 6, 2014 they received their 60% plans and specifications.The staff has been reviewing them to give comments back to the design engineer so they can keep moving forward.They are still on track with their schedule with 90% of their plans due December 11, 2014 and 100% of their plans due the first of the year.They can have this project bid early spring 2015 and the plant online early 2016.In regards to the Salt River Project redundancy source, the water district has two options.One option is a back-up generator which is what is being used now at their well sites to power the plants in case they loser power.Another option is to bring another power supply in from a different substation or power supply from Salt River Project so if one fails another can back it up so they would not lose power at any time.The water district met with Salt River Project. The initial capital cost was not too bad but Salt River Project tacked on an annual service charge that is about $7,000 to $8,000 a month.In comparison, to run the entire system now the water district pays Salt River Project about $10,000 a month.The annual service charge fee is a really large fee just to have standby power.This does not include receiving any power or using any power; it is just to have that resource available.Over a 20 year cost life cycle, a generator would cost $180,000 compared to paying the Salt River Project monthly service charge which is about $2 million Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 9 of 13 dollars.The water district is looking at going back to the backup generator rather than with Salt River Project since there is a cost savings.Possibly, in the future, as the plant grows and becomes more reliable, they could revisit this.Right now the water district has redundancy with the City of Mesa they can still use.They have a backup plan and wells they can use if the plant goes down.They have redundancy and a backup generator so they feel safe that this is a good option for them and a huge savings over 20 years.In the last meeting they talked about doing a sole source to a package unit supplier. After talking with the board members, the water district has decided to do a pre -selection package where they would go out to different vendors, give them specifications and allow them to bid just like anything else.They would not sign a contract with a vendor.They would just assign the contract to the contractor who is awarded the job.They went out to different vendors and received three proposals on November 12, 2014 and are in the process of reviewing them.They want to see who is best cost -wise, most responsive and who seems most reliable over 20 years.There are some treatment plants that run by themselves.There is little or no maintenance to them.There are other plants which are very operator -heavy and you need to have someone there all the time.They would have to hire more people.They are trying to compare the proposals to see which one is the best solution.He showed a diagram showing phase one of the water treatment plant which would be a two million gallon per day package treatment plant.They are planning on adding another four phases to make it a ten million gallon per day plant at final build up which would be in 20 to 50 years.This is the process they are going through.At the Central Arizona Project canal they have some raw water pumps that pump it in through some strainers to get out the big solids and then it goes through the treatment process which gives it a fine filtering so it is drinking quality.They have to send all their solids they create back to their solids handling equipment which is down to the south.After the water goes through the treatment process it goes through a finished well or storage tank and then out to the distribution system.The portion of the plant bid out to a vendor is a small portion of the plant but the most expensive part of the plant .at a cost of about $750,000.This is the initial phase and they are looking at putting the package unit of the treatment plant inside a building. There is piping on each end and they need to decide Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 10 of 13 what unit they are going to supply to the contractor.The design engineer can get down to the nuts and bolts and the different bends and pipe he has to put into the system to finish the design part.This is what they have been waiting on during pre -selection.Once this is done they will know exactly what they need and the contractor cannot come back at the end and say they were not aware of the parts they needed to get.The package unit is somewhat like a dumpster.The water feeds into the bottom and then does an up flow through an absorption clarifier to take out some of the bigger solids.Then it dumps over a trough into the next filtering stage where it goes down through sand media and garnet, filters out to effluent piping and is sent out to the finished water storage tank.He showed a display of where one of the water treatment packages will be and where all the future phases will be located in the building with the piping outside. Mrs. Rizzi asked if they had found a use for the solids or do they have to dispose of those. District Superintendent Mike Loggins stated they have not found a good solution for the solids.The way it is processed allows them to dump it in the landfill.They go through a sludge management process :so they can haul it off as normal dirt _waste rather than a hazardous waste.They should have 90% to 100% plans by the next water board meeting. DISTRICT TREASURER REPORT District Finance Manager John White discussed the operating summary of the water district's revenue expenditures so far.In October 2013 the water district took in roughly $1.3 million and only $12,095,000 total.There is a $29,000 drop from last year in revenues.The rate increase has not kicked in yet.The water district has gone from operating excess revenues of $282,000 down to $242,000 which is about a $40,000 drop.The detail of the revenues are that residential sales last year were $1,045,000 roughly and are down about $22,000 in sales this year at $1,022,000.The water district residential base in terms of the number of meters remains the same.It appears there is a lower consumption this year from last year.One of the reasons is the first three months of the last fiscal year were very Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 11 of 13 strong.There is also a rate increase that took effect in the October billing.This will start to reflect in future months. Mr. Wilson asked if the lower consumption may be due to the rains. District Finance Manager John White said it was a good possibility that the rains had an effect on lower consumption. Mr. Serdy asked if the golf course on Ironwood uses the water district's water. District Water Supervisor Mike Loggins said the golf course receives water from Arizona Water Company and was watered with untreated Central Arizona Project. District Finance Manager John White stated the operating expenditures were up a little overall.There is $10,000 more in expenditures.Administration costs have gone down about $1,200 from last year.The operating expenditures are down $27,000 from last year.The capital outlay is up due to the engineering cost for the treatment plant. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:38 p.m. ACCEPTED THIS /1;DAY OF _7g///54e,, 2014, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS /617.f-DAY OF A 6 -1165119( 2014.WILL40,4 n S. InsaTaco hairperson Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 12 of 13 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 18th day of November, 2014.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 9th day of December, 2014. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 18, 2014 Page 13 of 13