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HomeMy WebLinkAbout2015-10-20 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING October 20, 2015 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on October 20, 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 Mrs. Rizzi Mr. Serdy Mr. Waldron Mr. Wilson Staff Present: Others Present: (Vice Chairperson Barker was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Giao Pham, Utility Director Frank Blanco, District Director Matt Busby, Assistant City Manager Michael Loggins, District Superintendent John White, District Finance Manager Andria Samuels, Senior Management Assistant Al Bravo, Public Information Officer APPROVAL OF MINUTES OF SEPTEMBER 15, 2015 Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 1 of 12 ) Mr. Waldron MOVED THAT THE MINUTES OF SEPTEMBER 15, 2015, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED RESOLUTION NO. 2015-011, AUTHORIZING A WATER RESOURCE AND WATER SYSTEM INFRASTRUCTURE DEVELOPMENT AGREEMENT WITH BEL AGAVE, L.L.C. )District Director Frank Blanco stated the resolution is related to a development agreement with Bel Agave, L.L.C. and Kaufman Homes essentially. It includes water resource and water system infrastructure.The water resource acquisition fee is included to serve 101 single family residences.This fee is paid by the developer along with the water infrastructure as it is being built.The infrastructure includes water mains, hydrants, valves and things of that nature.The water resource acquisition fee has already been paid and they are holding the check based on the current rate of $83,123.The water system connection fees are paid at the time the permits are issued.However, the entire amount is due no later than October 2019.At the current rate that would be $419,154.He has four years to build the entire subdivision or pay the amount that is due. Chairperson Insalaco asked if he finishes the development in two years does he still have until then to pay for it. District Director Frank Blanco stated he pays as he gets the permits.If he gets them before then we get paid at that time, but no later than October 2019.If he is still not done by October 2019, he still has to pay the remaining amount.He showed a picture of the location and recommended approving the agreement with the terms. Mr. Waldron asked if they have infrastructure on Tomahawk. Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 2 of 12 District Director Frank Blanco stated the district has some. Mr. Waldron asked what he meant by some. District Director Frank Blanco stated they have a complete loop on Tomahawk but not on Old West going all the way towards the southeast.They do have the infrastructure to serve.He would build the infrastructure within the subdivision itself. Mr. Waldron commented two years ago someone was talking about wanting some water on Old West and they discussed the loops and lines. Chairperson Insalaco commented he believed it was across the highway. Mr. Waldron commented it might have been.Someone was going to put something in at Goldfield and the freeway. Chairperson Insalaco commented that was across the highway. District Manager Bryant Powell stated since that time, because of Jacob's Ranch and some annexations close to Acacia and Southern, the loop may be even closer from the south with water and sewer.The infrastructure may be closer to Goldfield and the freeway and we may be in better shape than we have ever been. Chairperson Insalaco called for a motion. District Manager Bryant Powell stated he had one reminder from Frank.This is the one that we did with Dan Kaufman that was an age -restricted and then changed. District Director Frank Blanco stated that is correct. Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 3 of 12 District Manager Bryant Powell stated when he was here not too long ago they asked him when he would be starting.The question he has now is still when.He asked if he had mentioned when, if he is getting closer. District Director Frank Blanco stated he is going to the Arizona Department of Environmental Quality to get his approvals in place.He is hoping to start sometime in 2016. it is still a 55+ subdivision. Powell stated that is correct. for a motion. Chairperson Insalaco asked if District Manager Bryant Chairperson Insalaco asked Mrs. Evans MOVED THAT RESOLUTION NO. 2015-011, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) AUTHORIZINTG A WATER RESOURCE AND WATER SYSTEM INFRASTRUCTURE DEVELOPMENT AGREEMENT WITH EEL AGAVE, L.L.C. BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DELIVERY AGREEMENT WITH HILL BROTHERS CHEMICAL COMPANY, INC. FOR THE DELIVERY OF BULK CHEMICALS ) )District Director Frank Blanco briefed the board on the item.This is for an agreement that would provide timely delivery of water treatment chemicals. They are used at the well sites and will be used at the future water treatment plant.The chemicals must be certified for drinking water treatment.They cannot chlorinate with pool tabs or shock.They must be delivered within 72 hours of the order. Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 4 of 12 The sites in the agreement include the well sites, the booster and water storage facilities as well as the future water treatment plant.At times there are some shortages.Without a contract one would basically get it whenever they can deliver it.The term is for twelve months from the effective date. There is an option to renew for two additional one-year periods. The total length of the agreement cannot exceed 36 months. Staff recommends approval in an amount not to exceed $30,000 per year.That amount is a conservative estimate for what it would cost for water treatment chemicals for one year for the water treatment plant and the wells. Mr. Serdy asked what chemicals are used other than chlorine. District Director Frank Blanco stated chlorine for disinfection and ferric chloride for arsenic removal.It settles out the solids.They also do pH adjustment at Well #6 for the treatment of arsenic removal. They treat the water with sulfuric acid before they treat the water to drop the pH.They also purchase caustic to raise the pH at the end of the process. Chairperson Insalaco closed the discussion and called for a motion. Mr. Waldron MOVED THAT THE DELIVERY AGREEMENT WITH HILL BROTHERS CHEMICAL COMPANY, INC. FOR THE DELIVERY OF BULK CHEMICALS IN AN AMOUNT NOT TO EXCEED $30,000.00 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT District Manager Bryant Powell stated last month there was a joint project on Ironwood Road with the two water providers and public works.It is in preparation for reconstruction with the .2% sales tax.A bunch of roads are under construction, causing Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 5 of 12 headaches but one can see the light at the end of the tunnel. One of them was Ironwood for three weeks.He wanted to thank the water district staff for working with public works and Arizona Water.They had a major issue moving the utilities underneath but it went smoothly.They were able to coordinate to get it ready for the capital projects. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated they would be giving them an update on the water treatment plant and the Ironwood water line project.They have a guest tonight, Mr. Farber, who will be talking about the insurance services office survey and the joint efforts they had with the fire district. District Superintendent Mike Loggins gave a slide presentation for the water treatment plant update.He had pictures of water lines installed to the CentraliArizona Project right-of-way and a slab of where meters will be placed in the future.The meters will receive the Taw water from the Central Arizona Project and they williknow how much is coming into the plant.He showed another picture updating the area that had been just a:big pit in the ground but has now been filled in with rebar and malls of concrete.A water test wasdone-on it recently.It is growing. They are in the process of backfilling this now.They all passed the water tests; there were no leaks on them. Mr.Waldron asked how many gallons it is. District: Superintendent Mike Loggins stated the EQ•basin is 150,000 gallons :and the finished water tank is about 200,000 gallons.He ,showed them pictures 'of the tanks filled for the water tests-.One tank is backfilled all the way around and they are starting the lines coming into it and draining out of it. They will'be,putting a slab that goes on topiof -this for the roof once the -tank is finished and nothing else. can get into it later. Chairperson Insalaco commented most of the whole plant will be underground. District Superintendent Mike Loggins stated this portion of is.They were trying to keep it .low profile-They want to start everything at the lowest part of the plant.They started Water Utilities Community Facilities District Meeting Minutes of October20., 2015 Page 6 of 12 these projects first.These are the big ones.There is a huge excavation out there right now.As it comes above ground it will start growing.They will show additional pictures as they get further into it.As they drive by they will start noticing more and more out there.Right now it does not look like very much happened out there but one can see it is all underground. Within the next week or so it will look flat again.It is moving along very quickly at this point. Mr. Waldron commented it is good to see progress. District Superintendent Mike Loggins showed a picture of the slab -for the treatment train.It is a box that looks like a dumpster that has all the treatment process in it.The next project they worked on was with the city with all the utilities gettingjput:in before all the road construction will_occur on. Ironwood:The contract was approved in August and in the last two months they have installed the 12" waterline -from Broadway to Apache Trail along with five hydrants that were not originally out there and twenty-one service connections.The original -bid -for the project was -$433,000.There were some change orders.Instead of doing -the road up to. standard public works allowed them to do a trench line rather than doing a T- top. Chairperson Insalaco commented that is going to be paved and redone. District Superintendent Mike Loggins stated that is correct.It saved some money and the contractor returned the -money on that change order.They ran into some other utilities out there so they had -to -change how the fire --hydrants come over-to the side of the road.They changed out -the meters and meter boxes so they -are all brand new.They will not have to touch this area for 10-30 years from now.Everything is up to standard.The total amount paid to the contractor was $448-,000.He showed pictures of -the trench.On October 8 they received approval from Arizona Department of Environmental Quality so they can turn the water --on and start serving customers.The original approval, with change orders, was for $476,000 so they came in almost $30,000 less than what was -approved-Kincaid was very easy -to work with and made changes immediately.It was a very good contract.Public works -helped with the:inspection for the existing road -to keep it going and keep traffic moving. Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 7 of 12 Mr. Mike Farber, Superstition Medical and Fire District, addressed the council regarding the ISO rating.The ISO rating goes from 1 to 10 with 1 being superior protection and 10 is not up to standard.You pay for those not up to standard in your insurance rates.They currently have an ISO class rating of 3 which puts them in the top 7% in the country.The benefits are it helps mitigate the hazards and allows them to measure how well they fight a fire.It offers economic benefits to the business community and homeowners with their insurance rates. They use a lot of statistical data from the Public Protection Classification System program which measures the rate of investment the community pays for fire protection, how they measure up to other departments around the country and if they are getting what they are paying for.The lower rates could encourage a business to buy here in Apache Junction.Mesa and Apache Junction have a 3 rating, Gilbert has a 5 rating and Chandler has a 4 rating.The city is doing much better.The more businesses we get, the lower the costs.There are 2,400 departments out of 49,000 in the country that have a 3 rating. The fire district is in the top 7%.They just had their most recent rating and were told they had improved.They may be a 2 or a 1 but will not know until the scores come in.He will be able to share that with the council in February or March.If they are a 2, they will be in the top 1.5%.He believes they have at least been raised to a 2.If they do hit a class 1, there are only 60 departments nationwide.It is .01% to be in the top.New York City is a 4.Sun City West is the only department in Arizona that is currently at a 1.He gave as an example of the insurance rate changes with the difference between a rating of 3 and 10.A 2,500 square foot house valued at $300,000 with a rating of 3 would mean an insurance payment of $750 a year.A rating of 10, meaning no fire protection, would have a payment of $2,400.It is a huge difference.The tax rate for that property for the fire district would be $450. The rating is based on three criteria:the fire department, emergency communications and water supply.The water supply is probably the most important part and is worth 25%.They can have the greatest firefighters in the world but with no water they would have to stand there while the house burns down.When they first started doing this 30 years ago they had Davis Water Company, which became Palm Springs which became Consolidated and is now the Apache Junction Water District.They never had the records, the distribution system or the color coding of hydrants that they have now.He thanked the staff for their tremendous Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 8 of 12 effort.He commented on the various tests the water district had to do on the system for this rating.Prior to the hydrants being painted they never knew the rating on the hydrant.Now they know when they drive up to it how many gallons they will get out of it per minute.When they came to test for the rating all the city hydrants tested substantially better than they were 10 years ago.He offered to paint the hydrants but the district did it in 2-3 days.He showed them a map of the city hydrants which are predominantly blue with just a few green.Blue tops means 1,500 gallons per minute, green tops 1,000 gallons per minute, red tops 500 gallons per minute and less for the orange tops.It used to be predominantly red and orange with some green tops. Water Superintendent Mike Loggins stated the map illustrates the hydrants in the water district.They have a water model of the water system where they can put out a pump curve to show what the water pressure will be and the flows will be.It enables them to determine how much flow they can get out of them and therefore color code them.They tested the hydrants to show they could meet those demands and every one of them passed. Mrs. Rizzi asked if the colors have changed.She heard them say they have brought more of them over to the blue, the higher rating. Mr. Mike Farber stated that is correct.Arizona Water can be anywhere from 1,000 to 4,000 gallons per minute.Anything above 1,500 is supposed to be blue. Mrs. Rizzi asked what they would have had to do to the hydrants to get the higher rating.She asked what would have to be done to bring it from an orange to a blue. Water Superintendent Mike Loggins stated the project they just finished on Ironwood went from a 4" water line to a 12" water line.It brings the fire flows up and there is not as much loss.Some of those hydrants were only 500 gallons per minute and they are now up to 1,500 gallons per minute.They doubled or tripled the size of the pipe. District Manager Bryant Powell asked if this map could ever be a geographic information system layer.They could then bring it Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 9 of 12 up on the data terminal whenever they have a call.In time his goal is to have lots of these layers of available data. Mr. Mike Farber stated their geographic information system person is on top of that.They give their information to Mesa who uploads it into their computer -aided data map and they can check it on the fire map on the way there.They can go to exactly the right hydrant.Eventually all the hydrants will have geographic information system locations.There are 326 hydrants and they are all painted.The pressures have come up substantially.Increasing the main size reduces the friction and we get more water out of them.They are now hoping to share records.The geographic information systems people for both entities are now talking to each other.His goal is not to have to do as much next time; this will just be ongoing.It was a great joint effort and it is great to see the city and fire district working together. Mr. Waldron asked if the homeowners and business owners have to notify their insurance companies when the district gets a rating of one or does the fire district do that. Mr. Mike Farber stated he would like to think they would be benevolent and call them to let them know.He believes the district will put out a press release and people will have to notify their own insurance company.Some insurance companies will choose not to.They had some people call them upset because their insurance company was going to drop them since they lived in Gold Canyon and did not have a station within 5 miles.It turns out they have 2 stations within 1.5 miles and have hydrants.With their tender shuttle, even areas without hydrants are considered to have hydrants because they can prove they can keep 1,000 gallons a minute going for two hours no matter what part of the district.Whether they have a hydrant or not, they should be given a rating of 3 anywhere in the city. Most insurance companies are forthright, but the district has told some people to change their companies or let them know this is the case.Whether they get the information on the rating change and let the homeowners know, he does not think they all do. Mr. Waldron commented probably not as they would want the money. Mr. Mike Farber stated his never calls him. Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 10 of 12 Senior Management Assistant Andria Samuels stated there are two water purveyors in the city, Arizona Water and AJ Water.In order to differentiate the Arizona Water hydrants from the AJ Water hydrants, the AJ Water hydrants do not have a brim painted in the coded color.If someone is driving down the street and can tell it is freshly painted and maintained, they only have to look at the brim.If it is yellow it is AJ Water and if it is solid it is Arizona Water.It is a point of pride for the district as they regularly test them and maintain them. Mr. Serdy commented that is awesome information.It is too bad it was not at a city council meeting where the public could see it.Maybe they could have him back someday. Chairperson Insalaco commented that was a good idea. Mr. Waldron thanked the water district for working with the fire district.It is -awesome they have a cooperative nature between the two to get this accomplished.It is tremendous,It speaks well of'both the fire district and the waterdistrict.He commended their -staffs. Mrs. Rizzi agreed. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:38 p.m. ACCEPTED THIS DAY OF AEr_c---A14is , 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 .-AV-t-4C-4/4671‹, John .S.7InsaIaco Chairperson Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 11 of 12 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 20th day of October, 2015.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of November, 2015. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of October 20, 2015 Page 12 of 12