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HomeMy WebLinkAbout2015-08-04 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING August 4, 2015 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on August 4, 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 Mrs. Evans (arrived 6:20 p.m.) Mrs. Rizzi Mr. Serdy Mr. Waldron Staff Present: Others Present: (Vice Chairperson Barker and Mr. Wilson were absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Frank Blanco, District Director Joel Stern, District Legal Counsel John White, District Finance Manager Michael Loggins, District Superintendent Giao Pham, Utility Director Matt Busby, Assistant City Manager Evie McKinney, Water Accounts Supervisor Andria Samuels, Senior Management Assistant APPROVAL OF MINUTES OF JUNE 16, Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 1 of 12 2015 ) Councilmember Waldron MOVED THAT THE MINUTES OF JUNE 16, 2015, BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. AGREEMENT WITH BEL AGAVE FOR A WATERLINE EXTENSION TO THE BEL AGAVE SUBDIVISION AND PAYMENT OF WATER RESOURCE FEE )District Director Frank Blanco stated they would like to continue this item to the September 15 meeting.Mr. Kauffman is not quite ready with the agreement. District Manager Bryant Powell asked if he had told him when he would get started. District Director Frank Blanco stated he did not indicate a begin construction date, but he is still planning on doing the project. District Manager Bryant Powell stated they have Stagecoach on the agenda for the meeting later tonight.He is working both so that is a good sign. Councilmember Waldron asked if they need to do a motion on this. District Legal Counsel Joel Stern stated they should do a motion to continue it to that date, unless they need flexibility if they are not sure if it will go on that next date either. Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 2 of 12 District Director Frank Blanco stated he was comfortable with doing it in September when he comes back.It is up to him if he is ready. District Legal Counsel Joel Stern stated they do not have to do a date certain, but if he feels he wants to they can. Chairperson Insalaco commented they can do it for the heck of it. Mr. Waldron asked if he meant a continuation. Chairperson Insalaco commented that is correct. Mr. Waldron MOVED TO THAT ITEM NUMBER TWO BE CONTINUED UNTIL NOTIFIED BY THE WATER DISTRICT. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CONSTRUCTION CONTRACT WITH KINKAID CIVIL CONSTRUCTION, LLC TO INSTALL A 12 -INCH WATERLINE ALONG IRONWOOD DRIVE FROM BROADWAY AVENUE TO APACHE TRAIL )District Director Frank Blanco asked Mr. Pham to explain the project and how it is tied into the Arizona Department of Transportation funding. Utility Director Giao Pham stated this project will be a precursor to what they are trying to do on the Ironwood project.Arizona Department of Transportation is currently advertising for the reconstruction of Ironwood slated for this fall from Broadway to Apache Trail. The city will be receiving $1.8 million in federal funding from Maricopa Association of Governments and through the federal Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 3 of 12 process.The city match is $100,000.Without jeopardizing the schedule and the matching federal government funds, they have a pretty aggressive schedule.They are asking all the utilities to relocate a lot of their facilities prior to the road construction part of it.Staff is moving forward on this particular project and that is why they are seeing it sort of back to back.It is the reason for kind of an emergency board meeting to accommodate that.The Ironwood project is phase three.Phase one was US 60 to 16th Avenue using grant money. The second phase was 16th Avenue to Broadway. Mr. Waldron asked if this is moving an existing line basically.The line is there, it is just being relocated. Utility Director Giao Pham stated that is correct.They are asking the water district and Arizona Water, who both have lines in it, to relocate their lines.They are doing the best they can to relocate the lines prior to the roadway project. Mr. Waldron commented when he saw it he thought they had one there already. District Director Frank Blanco stated the project involves a half mile of 12 -inch pipe. It will upgrade the existing pipe.The timeline was a notice inviting bids July 6-9, the bid was opened on July 21.They are awarding the bid tonight with a substantial completion date of September 21. Chairperson Insalaco commented that is for the waterline. District Director Frank Blanco stated that is correct.They will then be out of the way so that paving can begin. Chairperson Insalaco asked if there is any idea when that will be done.They already have people asking questions about it.He is not asking for a specific date but wanted to know if it would be done this year. Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 4 of 12 Utility Director Giao Pham stated it is currently being advertised for construction.The bid opening is October 23.Usually there is a month to get the contractor on board.He believes the construction project has a 90 day window. Chairperson Insalaco commented it will be in the middle of winter visitor time. Utility Director Giao Pham stated with all the other construction projects, they had to work on the Trail first and other construction projects, so this was a secondary project.Unfortunately it will be during the middle of the winter visitors but they will try to accommodate them. Mr. Waldron commented at least they will not have school traffic to worry about over there. Mr. Serdy asked what he expects it to come in at; not to exceed a half million or more. Utility Director Giao Pham stated he understands the cost estimate is about $1.9 million for the roadway construction.We do have some contingency with Maricopa Association of Governments.Originally it was around $1 million but because the photo process, environmental and they had to pay the Arizona Department of Transportation fees, they had to work with Maricopa Association of Governments to get additional funding. Mr. Serdy commented there is way more to this then just laying a pipe. Utility Director Giao Pham stated that is correct for the roadway portion.They are adding curb, sidewalk, gutter, base, and driveways along Ironwood from Broadway to Apache Trail. District Manager Bryant Powell asked where the sidewalks would be. Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 5 of 12 Utility Director Giao Pham stated the sidewalks would be along the east side and they will be adding driveways that will be up to code. Mr. Serdy commented the contract here is only for the pipeline. Utility Director Giao Pham stated that is correct.The mayor asked about the construction schedule for the roadway portion.The one Frank is talking about is the cost for the relocation of the district's waterline. Mr. Serdy commented that is going to cost $500,000 to go a half mile. District Director Frank Blanco stated that is correct.It was included in their five- year Capital Infrastructure Plan.He presented a slide show providing the general location.The cost estimate at that time was $308,000.The price did come in higher than that.The district is not getting as low of construction bids as we were five years ago.This time it came in at $433,616 as the low bid with Kinkaid Civil Construction.There were 6 bids; •the second lowest bidder came in very close to that amount.The highest bid was at $620,618. Chairperson Insalaco commented that is quite a bit of difference. District Director Frank Blanco stated it was a big spread.In the middle is $500,000 and the informal engineer's estimate- was about $500,000 as they saw how things were coming in.They have $308,000 in their budget for this project, and they have a cost savings related to not purchasing the long term credits from the sewer district, which is about $170,000.They are right at that $433,000 mark that they need to beat.They do have funding available for construction.The total bid was $433,616 and they are recommending a contingency of 10% or $43,361.60 and requesting approval of the contract with an amount not to exceed $476,977.60. Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 6 of 12 Mr. Serdy asked if there would be other utilities moving while they are there. District Director Frank Blanco stated there are gas lines that need to be moved on the northwest corner of the Broadway intersection.Arizona Water has already done their portion.The district is coming in now and trying to get the waterline upgraded and relocated.The gas company also has to do some relocation in that same area. District Manager Bryant Powell asked if there were any others. District Director Frank Blanco stated CenturyLink. Utility Director Giao Pham stated one of the major costs is that we are adding a storm drain along the Ironwood segment.That is why a lot of the utilities are relocating because of the conflict with the storm drain.It should address some of the flooding the school was trying to say was runoff into the streets.They are looking at storm drains for improvement as well. Mr. Serdy asked how the storm drain would be separate from the City of Apache Junction.He thought it would be the city's responsibility. District Director Frank Blanco stated the water district would only be responsible for the waterline.The storm drain would be public. works-. Utility Director Giao Pham stated they were trying to address some of the minor flooding during the design phase of the Ironwood project.With the input of staff and everyone else, they decided to put a storm drain along that.The city has prior rights so when we do improvements along this roadway all the utilities need to relocate their facilities as we have the authority. District Manager Bryant Powell stated at their expense. Water ,Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 7 of 12 Utility Director Giao Pham stated that is correct.Arizona Water, Southwest Gas, Salt River Project and everyone else has to relocate unless they can prove they have prior rights.Unfortunately from the district's perspective, the city has had to ask the district to relocate. Frank and Mike were able to be prudent with the schedule and not lose out on $1.8 million federal funding for the roadway improvements. Chairperson Insalaco closed the discussion with no further comments and called for a motion. Mr. Waldron MOVED THAT THE CONSTRUCTION CONTRACT BETWEEN APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT AND KINKAID CIVIL CONSTRUCTION, LLC. TO INSTALL A 12 -INCH WATERLINE ALONG IRONWOOD DRIVE FROM BROADWAY AVENUE TO APACHE TRAIL IN AN AMOUNT NOT TO EXCEED $476,977.60 BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated they are talking about Central Arizona Project because of news that has been in the media regarding possibly a reduction or cut in the Central Arizona Project water allocation, a shortage on the Colorado River.It is a declaration made by the Bureau of Reclamation and it will occur sometime in August 2015.They will determine this month if there is a shortage or not.There is no immediate threat of a shortage for this water year which begins October 1, 2015 and ends in October 31, 2016.The federal projection is the probability of a shortage within the next two years, but not for 2016.If a shortage was declared, Central Arizona Project would be subject to reduction in the Colorado River water due to junior priority water entitlement.The water entitlement is in the lower basin states.He showed a map of the basin states. The lower basin states are Arizona, California and Nevada.The upper basin states are Wyoming, Colorado and New Mexico.The Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 8 of 12 lower basin states have junior rights on the river and Central Arizona Project has junior rights on the amount of water we get from the river.It is a concern for us and we need to find out what is going on in terms of whether or not a shortage will be declared and how we would be affected by that. Chairperson Insalaco asked how it would affect Mexico. District Director Frank Blanco stated Mexico has an allocation for the river.Their entitlement is pretty much guaranteed however the Bureau of Reclamation is working with Mexico to keep some of the water behind in Lake Powell and not deliver it to them by some other types of exchanges. Mr. Serdy asked how much evaporation is in that canal from the Colorado River all the way down to here.He asked if they have thought about covering it over the last fifty years, although that could be dangerous as kids could get under it and get trapped. District Director Frank Blanco stated there is evaporation and seepage because it is not lined. Mr. Serdy commented it has cement all the way under it. District Director Frank Blanco stated the river itself does not. Mr. Serdy commented he meant the canal.Once it gets into the Central Arizona Project Canal and the faster it moves, the more it evaporates. District Director Frank Blanco stated there are some losses. The losses are generally calculated at five percent.That is what Salt River Project uses to calculate their losses and he would imagine Central Arizona Project uses a similar type of formula.He does not have an exact answer for him but he can try to get one. Mr. Serdy commented it feels like it would be more than five percent; put a bucket of water outside today and watch where it goes. District Director Frank Blanco stated evaporation in our area is something like six feet per year.It is very dry out here.He Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 9 of 12 does not believe any thought was given to lining the canal when they built it.It would have been more expensive than just building an open ditch.Getting back to the shortages, a near term shortage would not impact the supply for Arizona's cities, towns, industries, mines or tribes using the Central Arizona Project water.It would cease water deliveries for recharge and reduce a portion of the Central Arizona Project water that is identified for groundwater replenishment.It would impact agricultural users in Central Arizona such as Pinal County and could cause an increase in Central Arizona Project water rates. If more severe shortages were declared and Arizona's supply of Colorado River water was reduced further, then Central Arizona Project, the Arizona Department of Water Resources and Arizona Banking Authority have plans on recovering stored water which is water that has been stored underground through underground recharge.The water would be for delivery to recover that water if needed.Those agencies are also working with other Colorado River water users to stop or delay additional cutbacks by protecting levels in Lake Mead.They are also trying to work with Mexico on keeping some of the water upstream and not deliver it.The levels in Lake Mead have actually gone up three feet since we last talked about this.He gave them a drought website where they could learn more information. District Manager Bryant Powell asked if three feet is a big deal. District Director Frank Blanco stated it is.If they look at how much they have been continually losing throughout the year, this three feet is only due to snowfall and rainfall received in the late spring.There are some weather predictions out there where they feel we will have a wetter winter as well.The additional snowpack will help. District Superintendent Mike Loggins gave an update and picture presentation on the Central Arizona Project water treatment plant.He showed pictures of the sump area of the equalization basin and looking down into the hole.The hole will be about 100' in diameter and 30' deep with walls built around it. Mr. Serdy asked what the sump does. District Superintendent Mike Loggins stated they filter the water and then backwash it.All the solids left in little, fine Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 10 of 12 particles are backwashed into the sump area.It will be drained down and recycled with 90% of the water being recycled back out of it.The solids go to the landfill.After the water is recycled, it will be retreated so they do not lose very much. He showed pictures of the base of the finished water storage tank and the pump galley area.It is about 24' deep and does not look very big but it is a big hole in the ground.This is where they were standing at the groundbreaking ceremony.The site is now all cleared off with two big holes to start the underground facilities they will have out there.They are starting to put in the underground pipelines.They should start seeing things go vertical in late September/early October. Mr. Serdy asked if there are still some places that use lead. District Superintendent Mike Loggins stated Arizona Department of Environmental Quality will no longer let anyone use lead. Lead had to be replaced back in the 1980s/early 1990s. Mr. Serdy commented there is probably some still in peoples' houses back east. District Superintendent Mike Loggins stated there could still be some back there.They had to go in and remove it in Bisbee, Arizona, when they found out there was lead in the lines.The district has no lead in its brass products, it was all changed over as of last year.It cannot leach out. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:28 p.m. ACCEPTED THIS / 5 .1/4 DAY OF P7ET11 A012 , 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. DAY OF 3 6 :P 1 -6 -1Y) Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 11 of 12 Kathleen Connelly District Clerk John S. Insalaco Chairperson 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 4th day of August, 2015.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 24th day of August, 2015. ci Water Utilities Community Facilities District Meeting Minutes of August 4, 2015 Page 12 of 12-