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HomeMy WebLinkAbout2014-12-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING DECEMBER 16, 2014 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on December 16, 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 (Vice Chairperson Barker and Mrs. Rizzi were absent) Staff Present: Others Present: Frank Blanco, District Director Joel Stern, District Legal Counsel John White, District Finance Manager Michael Loggins, District Superintendent Kathleen Connelly, District Clerk George Hoffman, District Manager Andria Samuels, Administrative Assistant Matt Busby, Assistant to the City Manager Eric Yuva, City Prosecutor APPROVAL OF MINUTES OF NOVEMBER 18, Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 1 of 9 2014 ) Mr. Waldron MOVED THAT THE MINUTES OF NOVEMBER 18, 2014, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO. 2014-015, AUTHORIZING AN AGREEMENT WITH THE CITY OF YUMA TO PURCHASE WATER TREATMENT EQUIPMENT ) District Director Frank Blanco stated the resolution is an agreement between the water district and the City of Yuma to purchase equipment.The equipment the water district is proposing to purchase is four cone bottom sledge tanks and a sledge conveyor belt.The cost of the tanks is $20,000 total and the cost for the conveyor belt is $40,000.The total cost of the equipment is $60,000.The dismantling and storage of the equipment and warranty for one year is a total cost of $17,500.The approximate cost for new equipment would be $160,000.The equipment became surplus by the City of Yuma and was used for a period of two to three years.It is equipment that can be used for the Central Arizona Project water treatment plant. Chairperson Insalaco asked who is providing the warranty on the equipment. .District Director Frank Blanco stated the original vendor that supplied the equipment will supply a one year warranty on the equipment -and conveyor. The vendor will also coordinate the dismantling, moving and storing the equipment from Yuma to Apache Junction.The resolution -authorizes the water district to enter into an intergovernmental agreement with the City of Yuma.The City of Yuma is planning to take this to their city council on January 7, 2015 for approval.The resolution authorizes the district manager to sign the intergovernmental agreement and the agreement enables the water district to purchase the equipment Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 2 of 9 to be used for the future water treatment plant.There is a revised motion that has been recommended by water district staff.In order to make the agreement contingent upon the approval of the Arizona Department of Environmental Quality of the plans and the use of this particular equipment, the water district felt it was necessary to add another section to the motion so they can mitigate their risk just in case for whatever reason the tanks are not acceptable to Arizona Department of Environmental Quality. RESOLUTION NO. 2014-015, A RESOLUTION AUTHORIZING AN AGREEMENT WITH CITY OF YUMA TO PURCHASE WATER TREATMENT EQUIPMENT called for a motion. Chairperson Insalaco Mr. Waldron MOVED THAT RESOLUTION NO. 2014-015, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), FOR AUTHORIZATION TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF YUMA TO PURCHASE WATER TREATMENT EQUIPMENT BE APPROVED, AND THAT THE AGREEMENT BE SIGNED AT SUCH TIME THAT ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY APPROVES THE EQUIPMENT. Mr. Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco gave an update on the Central Arizona Project water treatment plant and the meeting the water district had with the Arizona Department of Environmental Quality, which will be reviewing and approving the water treatment plant plans and issuing the water district an approval Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 3 of 9 to construct the Central Arizona Project plant.The water district had a meeting with the Water Infrastructure Finance Authority.The meeting brought the Water Infrastructure Finance Authority up to date on the progress of the water treatment plant and how the water district is moving forward on schedule. The water district has done one draw down so far and will be sending additional draw down requests on the loan.The schedule will be updated.He talked about the pre -selection of the treatment system for the water treatment plant'.It is a modular plant.The water district went through a pre -selection process to determine which of the three submittals they had was the most appropriate for use in the water treatment plant based on the requirements, efficiency and cost of equipment. District Superintendent Mike Loggins stated earlier last week the water district received 90% of the plans from Carollo Engineers for the water treatment plant.Staff is in the process of reviewing and giving comments back to Carollo.They are still on track for early January for 100% of the plans and will start submitting the plans to Arizona Department of Environmental Quality and development services for approval so they can put the project out for bid.They are planning on posting and bidding the treatment plant in March.In April or May they will be asking the water board for approval on a contract so the contractor can start construction on the water treatment plant.They will also have a resolution for contractor approval at that time.The city standard process on bids is a two week process.Water Infrastructure Finance Authority requires the water district to do a 30 day bid process.This will give the water district more time to let potential bidders know about the project.During the pre- selection process the water district put a request for qualifications out in October that were due in November. Carollo Engineers did an evaluation of all the submittals received.They received three submittals from three different vendors.One was Westec and the water district visited their plant in Cave Creek.Corex operates all over the United States but none are operating in Arizona at this time.Tonka is another manufacturer.Based on their proposals in reference to the specs and bid price, the water district picked Corex.It is the best qualified and lowest priced contractor that will supply the equipment to them.The portion of the plant the contractor will supply the equipment for cost approximately $500,000.It Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 4 of 9 is probably one of the biggest cost items the water district will have at the plant.The model the water district picked is the AC1400 which is approximately a two million gallons per day treatment process package plant.The water district will not be signing a contract with the supplier.They will be assigning it to the general contractor that will be building the plant. There will be no contracts involved with the water district.It will be directly through the general contractor the water district hires.The general contractor will be given a list of iwho they have to use and what the price is for this process.He showed the board members a diagram of how the treatment process package plant would operate. Chairperson Insalaco asked what the maintenance was on the plant and if there was much maintenance on cleaning it. District Superintendent Mike Loggins stated it goes up flow and then down flow and the sand media filter is back washed about every 7 hours.Instead of it going 9 gallons per minute, the water district ups it to 16 gallons per minute and adds air to it so it flushes up the gravel and flushes the dirt material out.The water district sends it off to be processed and brings the water back so they do not lose any of the water.The same thing is done with the down flow rapid gravity filter.It is in down flow most of the time until they do a backwash and lift the media up and make it taller by backwashing it with air and water.It cleans all the dirt out of it and goes through another process so they can get all the solids out of it. Chairperson Insalaco asked if they have to change the sand filter every so often like a pool filter. District Superintendent Mike Loggins stated the sand filter is on a much greater scale than a pool sand filter.When a pool sand filter is backwashed some of the sand is actually backwashed with it.The water district will only bring the sand level of their sand filter up to about 9 inches so they will not be removing the sand, only the dirt and particles from the water.Every five to ten years they will need to add some sand but it will be tons of sand and gravel at that time. Mr. Waldron asked when they would anticipate digging dirt if the schedule goes as planned. Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 5 of 9 District Superintendent Mike Loggins stated they are looking at April or May.After the board has approved it they will have a month or two of submittals the contractor will have to provide to them to make sure the contractor is going with all the specifications the water district has.Then the contractor can start ordering materials and start construction on the site. Probably early summer they will see some construction on the site. District Director Frank Blanco gave an update on the non -Indian agricultural water.This water was originally allocated to non- Indian agricultural water users.The agricultural water users refused to pay for the water.They felt they did not need it. They thought they could run wells or have a different source of water.It was turned back into the Bureau of Reclamation.It needs to be reallocated to users that have a subcontract.The water district has a subcontract for Central Arizona Project water and the recommendation was made by the Arizona Department of Water Resources on January 16, 2014 to allocate 817 acre feet reallocated to the water district.The water district requested more than 817 acre feet but they reallocated a block of water and divided it up among the entities that requested it.The Bureau of Reclamation is currently reviewing the recommendations.Even though the Arizona Department of Water Resources recommended 817 acre feet it now has to be reviewed by the bureau and approved.In the process of doing the review and recommendations for approval, they are also required to do an environmental assessment on the Central Arizona Project water. This is very similar to the environmental assessment the water district was required to go through when they leased the Gila River Indian Community Water.It is probably going to take the Bureau a significant amount of time, longer than it did just for the water district because they are looking at mining companies getting a reallocation of water along with other cities.It is going to take a significant amount of time.The cost for the Central Arizona Project 817 acre feet of water is $1.52 million. It is less than the leased water the water district has from the Gila River Indian Community because this water is only available about 60 percent of the time.Even though it is Central Arizona Project water, it is one of the first classes cut for reduction. The last information the water district has received from Arizona Department of Water Resources is that the water may Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 6 of 9 become available in 2017.The water district is looking at approximately three years from the time the bureau got the recommendations until the time they finally get done with their process.Even though it seems like a long time, it is beneficial in some ways because it is water the water district would not be immediately using but would have rights to.The Arizona Water and Wastewater Agency Response Network mission is to support and promote statewide emergency preparedness, disaster response and mutual aid assistance for water and wastewater utilities during natural and human caused emergencies.It is slightly different than some of the other emergency response networks because it focuses on water and wastewater utilities.It is found throughout the United States and is supported by the American Water Works Association and the Environmental Protection Agency as well as many other national water sector programs.The members in Arizona span from Flagstaff to Tucson.The largest member is Phoenix Water Utility.They serve about 2.2 million customers.The smallest utility is Camp Verde and they serve about 1,300 customers.The water district would be the first and only member in Pinal County.Membership is voluntary and requires a signed agreement that expires June 30, 2020 and requires emergency contact information.Typically the utility director would be the authorized designee.In case of an emergency, the director can declare an emergency but it would only be an emergency for the water district itself, not for anything else.This triggers the water district to be able to seek help from other cities for equipment, personnel and things of that nature the water district may not have readily available to them without having to go out and find it, rent it or do some other means of acquiring it.There is a benefit of being a member.It does not cost anything to be a member and is voluntary.If the water district asks someone for help and they are in dire need of their own equipment they can say they cannot help and vise- versa.The water district may have some other cities calling them for help as well.Typically, the water industry is good about helping each other out and making sure everyone gets the equipment they need in case of an emergency.There is a requirement for an equipment schedule.The schedule lists all the equipment the water district currently owns and also what others entities also have available.The reason for this is for reimbursement because part of the agreement is reimbursing the entity that helps out.If a member is going to borrow equipment Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 7 of 9 from another member instead of renting it there is a fee associated with that.The fee is optional and is included in case an entity wants to charge it.It is a good way to be prepared so they do not have to scrabble at the last minute to try to get help if they need it.Later, the actual agreement will be explained and the attorney will review it.There will be a request for a resolution to enter into the agreement with Arizona Water and Wastewater Agency Response Network as a member if the water board approves it. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:23 p.m. ACCEPTED THIS c:=;-711 DAY OF ,c.„ -414-4/(.444b1/, 2015, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WAT,ER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 2015. ATTEST: itt-oe0 ("UHI o t N/KPV[..44.1e-t/t 0 6 /John S. Insalaco Chairperson Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 8 of 9 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 16th day of December, 2014.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 29th day of December, 2014. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of December 16, 2014 Page 9 of 9