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Home My WebLink About2015-06-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING June 16, 2015 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on June 16, 2015 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. Wilson Mr. Waldron Staff Present:George Hoffman, District Manager Kathleen Connelly, District Clerk 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 Others Present:Evie McKinney, Water Accounts Supervisor Andria Samuels, Senior Management Assistant Eric Yuva, Assistant City Attorney/City Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 1 of 7 Prosecutor APPROVAL OF MINUTES OF MAY 19, 2015) ) Vice Chairperson Barker MOVED THAT THE MINUTES OF MAY 19, 2015, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 ) District Director Frank Blanco stated the main points of the budget include construction of the surface water treatment plant, rate adjustments and the classification and compensation plans.The base rate increase proposed is 5%, adjustments to the consumption rate tiers are proposed as well as the consumption rate remaining the same.He showed a graph comparing the rates to other water providers. The average base rate is proposed at $20.61 per month.The lifeline rate on the tiered consumption is being changed to 4,000 gallons versus 5,000 gallons.The second rate goes from 5,000-12,000 to 4,001-10,000.The highest tier is over 10,000 gallons versus over 12,000.The cost of the water remains the same but the tiers changed.The reason for not changing the rate on the cost per gallon is because the water district rates are currently higher than other water providers in the area. The net increase for a consumer using 4,340 gallons is $1.66 per month.The high use consumer using 15,400 gallons would be $4.61 per month.The change on the system connection fees is $100 across the board.This would affect Bel Agave.He just had a meeting with Mr. Kaufmann yesterday and he is wanting to move forward with the project.They will be back in July to request approval of a development agreement with Kaufmann Homes. It is about 120 lots.It would be a little over $400,000 in connection fees by the time he builds out.Water resource acquisition fees will be a little over $80,000.Total resources available are $14,796,625.The total expenditures proposed in Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 2 of 7 the budget are $14,565,515.The ending balance will be $231,110. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULE FOR FISCAL YEAR 2015-2016 ) 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. 2015-004, ADOPTING ESTIMATES OF EXPENDITURES BY THE DISTRICT FOR FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 AND DECLARING SUCH ACTION SHALL ESTABLISH THE BUDGET for a motion. Chairperson Insalaco called Mrs. Evans MOVED THAT RESOLUTION NO. 2015-004, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), FOR FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016; DECLARING THAT SUCH ACTION SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) FOR FISCAL YEAR 2015-2016, BE APPROVED. I FURTHER MOVE THAT ANY JULY PAY ADJUSTMENTS INCLUDED WITH THE ADOPTION OF THE FISCAL YEAR 2015-2016 FINAL BUDGET AND DONE IN CONJUNCTION WITH THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CLASSIFICATION PLAN FOR FISCAL YEAR 2015- 2016 AND THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT COMPENSATION PLAN FOR FISCAL YEAR 2015-2016, AS ADOPTED BY RESOLUTION NO. 2015-005 ON MAY 19, 2015, SHALL BECOME EFFECTIVE BEGINNING THE FIRST DAY OF THE FIRST FULL PAY PERIOD IN JULY 2015, BE APPROVED. Mr. Wilson SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 3 of 7 VOTE:Unanimous. The motion carried. RESOLUTION NO. 2015-006, RE- ADOPTING ALL EXISTING RATES, USER FEES AND CHARGES FOR FISCAL YEAR 2015-2016 INCLUDING NEW RATES FOR MONTHLY BASE SERVICES, CONSUMPTION, SERVICE AND METER INSTALLATION FEES, SYSTEM CONNECTION FEES, WATER RESOURCE ACQUISITION FEES, STANDPIPES, FIRE HYDRANT METERS AND GENERAL SERVICE CHARGES; AND ESTABLISHING AN EFFECTIVE DATE ) Chairperson Insalaco called for a motion. Mr. Waldron MOVED THAT RESOLUTION NO. 2015-006, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), RE -ADOPTING ALL EXISTING RATES, USER FEES AND CHARGES FOR FISCAL YEAR 2015-2016 INCLUDING NEW RATES FOR MONTHLY BASE SERVICE, CONSUMPTION, SERVICE AND METER INSTALLATION FEES, SYSTEM CONNECTION FEES, WATER RESOURCE ACQUISITION FEES, STANDPIPES, FIRE HYDRANT METERS AND GENERAL SERVICE CHARGES; AND ESTABLISHING AN EFFECTIVE DATE, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2015-.-008, AUTHORIZING THE ADOPTION AND RESTATEMENT OF THE EMPLOYEE FLEXIBLE BENEFIT PLAN )District Director Frank Blanco stated this is a benefit similar to what the city has. It was originally adopted in 2009 for district -employees and Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 4 of 7 needs to be amended to include a new plan that features vision insurance, a health savings account and a debit card for flexible spending accounts. Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2015-008, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), AUTHORIZING THE ADOPTION AND RESTATEMENT OF THE EMPLOYEE FLEXIBLE BENEFIT PLAN BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated they are working on an intergovernmental agreement with the sewer district that expires December 31, 2015.The final draft is ready for review.They have been working with both attorneys.The -water district will not 'purchase any 2014 or 2015 recharge long term storage credits as part of the agreement.The district will have a first right of refusal for 2016.The sewer district is working on another intergovernmental agreement with Central Arizona Groundwater Replenishment District who will purchase the credits not purchased by the district during this time.The lake levels have gained about 3 million acre feet.They are projecting Lake Meade will climb to 1,081 elevation versus 1,075 which would have _caused a declaration of shortage.It is probable that Arizona Department of Water Reclamation will not call for a shortage in 2016. Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 5 of 7 Water Superintendent Mike Loggins thanked the council for coming out to the groundbreaking ceremony for the treatment plant.In May and June they have been taking in submittals.Carollo wrote all the specifications and the contractors are submitting their choices.They will keep them updated as the project moves forward. Chairperson Insalaco asked how many extra personnel will be needed to run the plant when it is done. Water Superintendent Mike Loggins stated they will have to hire a new operator for this plant because it is higher than any grades they currently have to operate the plant.Frank and he are the only ones with the certification that could run the plant.If they do not want to spend their time out there, they will have to hire someone who has run a plant in the past.It is in their budget for next year.They have already planned on it.They will hire someone in January so they are on board while they are doing construction on the plant and will be familiar with everything. DISTRICT TREASURER REPORT District Finance Manager John White stated the expenditures to date for Carollo Engineers are $643,591.They will be getting a reimbursement for $200,000 from Water Infrastructure Finance Authority.Through May, compared with last year, we are down a little bit in terms of revenues versus expenditures.We are down about $63,000 in revenues.It is less than 2 percent. Expenditures are up with much of that capital -related.They are still $685,000 to the good for operating expenditures versus revenues.Residential sales are down $16,900 probably due to lower consumption and more efficient appliances.It is an industry trend.Nonresidential sales are down almost $29,000. Most of that is due to major, one-time work last year at the landfill.Other charges are down incrementally as well. Administration expenditures are relatively flat, decreasing about $2,000.Plant expenditures are up as well as our costs for Mesa.Because of the reduction of the sewer district fees, our costs have decreased $167,000.Capital outlay is up because of our expenditures largely with the plant. ADJOURNMENT Water Utilities Community Facilities District Meeting Minutes of June 16, 2015 Page 6 of 7 Kathleen Connelly District Clerk ) Chairperson Insalaco adjourned the meeting at 6:18 p.m. ACCEPTED THIS 111-* /DAY OF /11,VZ.A -7 ', 2015, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 2015. ATTEST: Kathleen Connelly District Clerk DAY OF 44/e=e46-r , d John S. Insalaco Chairperson 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 June, 2015.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 18th day of June, 2015. 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