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HomeMy WebLinkAbout2016-05-17 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 17, 2016 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 17, 2016 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. Waldron Staff Present: Others Present: (Mr. Wilson was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Giao Pham, Utility Director Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent John White, District Finance Manager Andria Samuels, Senior Administrative Assistant Al Bravo, Public Information Officer DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2016-2017 ) Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 1 of 8 )District Director Frank Blanco stated they have gone through some of the details over the last couple of meetings.There will be a base rate increase of 5%, no changes to consumption rates or consumption tiers, the average base rate is at $21.34 which is very close to the rate Arizona Water Company charges for the Superstition Area and under both scenarios it is less than a 3% overall increase. There is a 3.1% increase on residential system connection fees that does not affect current customers. Chairperson Insalaco closed the discussion with no further comments and moved on to the next item as this was a discussion item only with no action to be taken this evening. RESOLUTION NO. 2016-002, DECLARING AS A PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CLASSIFICATION PLAN FOR FISCAL YEAR 2016-2017" AND "THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT COMPENSATION PLAN FOR FISCAL YEAR 2016-2017" )District Director Frank Blanco stated this item adopts the district classification and compensation plans for Fiscal Year 2016-2017.It is identical to the city compensation plan.The budget does include a one- step increase. Chairperson Insalaco called for a motion. Mrs. Evans MOVED THAT RESOLUTION NO. 2016-002, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) DECLARING AS A PUBLIC RECORD AND ADOPTING CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "THE APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CLASSIFICATION PLAN FOR FISCAL YEAR 2016- 2017" AND "THE APACHE JUNCTION WATER UTILITIES COMMUNITY Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 2 of 8 FACILITIES DISTRICT COMPENSATION PLAN FOR 2016-2017" BE APPROVED. Vice Chairperson Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULE FOR FISCAL YEAR 2016-2017 )Chairperson Insalaco opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing.As this was a public hearing only with no action to be taken, he moved on to the next item. RESOLUTION NO. 2016-005, ADOPTING A PROPOSED BUDGET FOR FISCAL YEAR 2016-2017, ADOPTING PROPOSED RATES, FEES, DEPOSITS, WATER RESOURCE ACQUISITION FEES AND CHARGES AND ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET )District Director Frank Blanco stated this resolution adopts the proposed budget, rates, fees, deposits, water resource acquisition fees and charges and establishes a public hearing on the proposed budget.The date, time and location for the proposed budget has been scheduled for June 21, 2016, at 6:00 p.m. here in the city council chambers. Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2016-005, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA), PURSUANT TO A.R.S. § 48-716, ADOPTING A PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2016 AND ENDING ON JUNE 30, 2017; ADOPTING PROPOSED RATES, FEES DEPOSITS, WATER RESOURCE ACQUISITION FEES AND .CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2016 AND ENDING ON JUNE Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 3 of 8 30, 2017; ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET; AND DIRECTING STAFF TO SOLICIT COMMENTS FROM THE CITY OF APACHE JUNCTION ON THE PROPOSED ANNUAL BUDGET BE APPROVED; AND I FURTHER MOVE THE PUBLIC HEARING FOR THE FINAL BUDGET ADOPTION BE HELD ON JUNE 21, 2016 AT 6:00 P.M. IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, 300 EAST SUPERSTITION BOULEVARD, APACHE JUNCTION, ARIZONA. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated the 2016 Water Festival had four schools participate with one from Mesa.They had thirteen classes with about 400 fourth grade children.They had over 45 volunteers. Chairperson Insalaco commented at least he did not get wet this time. Vice Chairperson Barker commented she did. District Director Frank Blanco stated the 89th Annual Arizona Water Association Conference was .attended by over 1,700 water professionals.Mike Loggins gave a presentation at the conference.:on .our transition from groundwater and treated surface water .from the City of 'Mesa to the city's first water treatment plant-This was the second presentation in .a row on the water treatment plant and it was very well done.It was to a standing room only crowd.There was lots of interest in the plant by all .of :the attendees—They hope to havea grand opening someday and an operators section where they can bring some of the .professionals in and show them around,:He is very proud of the project.He stated the 2015 Consumer Confidence Water Utilities Community Facilities District Meeting Minutes :of May 17, 2016 Page 4 of 8 Report is due towards the end of June.It is also called the water quality report.It includes sample results and any exceedences.It will be available online and on paper copies. This year they will be reporting a positive report on the total coliform which was sampled several months ago.It was resampled and it came back with a total absence of total coliforms.The first one showed there could be something there and with additional sampling it came back with no presence.Sometimes there are factors such as possibly during that day, as it was windy and raining, the sample being contaminated.The report also includes water facts like source water assessment and where the water comes from.It is a good report with a lot of good information in it.They hope to have that available sometime next month. District Superintendent Mike Loggins stated they have installed about 370' of six-inch pipe for a water line in place at the downtown park.They have two tie-ins that they will have to do but they have to get approval from Arizona Department of Environmental Quality before they can actually tie them in. They have worked with Arizona Water Company for the last week, pricing some people out in the park area.By mid -June they should have the underground work wrapped up. Chairperson Insalaco commented very good.People are beginning to notice something happening.They want to know what is going on and what is being built.He has advised them they are not building anything; it is the park. District Superintendent Mike Loggins stated the water treatment plant is progressing on time within the approved budget.They plan on finishing it in August and they are currently training for each individual component.They have their lead operator and a temporary employee that will help them start up the plant who will be on board with the district for six months.They have a good team out there and it is moving forward quickly.He commented they had some discolored water a week ago in the system.They had an upset at the arsenic treatment facility that put a little bit of iron into the system.It turned the water yellow.They did receive some complaints from about a half dozen customers.They flushed the water lines and cleaned them.They went out and verified there was nothing wrong with the water.It was just yellow because of the iron levels in it. Everything is back to normal and the system is moving along. Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 5 of 8 They talked to the customers and everyone seems happy out there. It happens every once and a while.When they flush the mains it actually stirs up more dirt in the water.They had to mitigate some of those issues while they were doing it. Mrs. Rizzi thanked him for explaining that. District Superintendent Mike Loggins stated he thought they might have heard about it last week.He showed them some pictures. Mr. Waldron asked what it was. Chairperson Insalaco commented it looks cool. District Superintendent Mike Loggins stated that was taken at the Cactus Water Treatment Plant.It is inside the building. District Manager Bryant Powell stated he is grateful the water district and Arizona Water have worked together for the savings to the taxpayer, to get the easement done, to get the water line out of the park area and out in front so that whatever is put on that land eventually is done.It saved a tremendous amount of dollars.It could have been $50,000 and we are spending $15,000.It is a tribute to Frank and his staff and everyone else involved as well as Arizona Water.They are also working on a water conservation area in the northeast part of the park. They are starting to schedule meetings to have Liz give them an update on where they are at with the final design.He asked that they keep them posted if they have any questions. Mrs. Rizzi commented it is just one more example of why partnerships are so important. DISTRICT TREASURER REPORT District Finance Manager John White stated the base revenues have shown an increase this month.Sales continue to increase over the prior year.They are $155,000 more in the overall revenues over last year.The noncapital expenditures are up incrementally from salary increases, the class and comp study, vacancies filled and a termination payout.Net operating revenue is up $130,000.Debt services have increased as we draw down more on the loan.Residential sales are not as high as Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 6 of 8 they were two years ago and consumption is up marginally.Part of that is the base rate has helped to stabilize the revenue base.Nonresidential revenues are up a little bit more than last year.Other charges are down a little bit which includes establishment charges and late payment fees.Possibly fewer people are paying their bills late.Surface treatment plant expenditures are up; they paid about another half million to Garney last month, another $25,000 to Carolla Engineers and there were some other incidental charges such as rock/gravel charges for the outside area of the plant and material testing. They are at about $9.5 million now. Mr. Waldron commented he likes the way this is being presented. It is very useful. District Manager Bryant Powell stated good job. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:18 p.m. ACCEPTED THIS c:2 1 6-r DAY OF N1/VA/er , 2016, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS c 2 T 5 -r DAY OF Njf/A1 , 2016. 6 // John S.-Insalaco Chairperson ATTEST: Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 7 of 8 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 17th day of May, 2016.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of June, 2016. Kathleen ConnellyConnelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 17, 2016 Page 8 of 8 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 3, 2016 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 3, 2016 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. Waldron Mr. Wilson Staff Present: Others Present: Bryant Powell, District Manager Kathleen Connelly, District.Clerk Joel Stern, District Legal Counsel Giao Pham, Utility Director Frank Blanco, District Director Donna:Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District. Superintendent John White, District Finance Manager Evie McKinney, Utility Billing Supervisor Al Bravo,-Public Information Officer DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2016-2017 ) Water Utilities Community Facilities District Aft Meeting Minutes of May 3, 2016 M I Page 1 Of 9. )District Director Frank Blanco stated they will give them a brief overview on the proposed rates, fees and charges, classification and compensation plan, and the date, time and location for the proposed tentative and final budget adoptions.It is basically a review.The water treatment plant will finish construction. One hundred thousand dollars is being budgeted for the replacement of the Well 6 pump assembly, pump and possibly some of the well casing and $400,000 for the purchase of a generator for the water treatment facility.They are seeing an increase of $68,600 for Central Arizona Project municipal and industrial charges for the Central Arizona Project water.They are estimating an increase of $125,000 for electrical costs for the water treatment facility and a decrease of $100,000 on the water treated by the City of Mesa.There will be a decrease of $140,000 of a reserve capacity charge paid to the City of Mesa for the treatment of the Central Arizona Project water allocation.There is an increase of $110,000 for the water being delivered by Central Arizona Project. Vice Chairperson Barker commented that kind of breaks even. District Director Frank Blanco stated it is pretty close.They have added a new line item of $10,000 for water conservation.It will help fund a water conservation demonstration area in the downtown park.It will be in the northeast area of the park.The parks department will go into more detail on it but it is meant to be a space the public will be drawn to where they can sit back and relax.The area will not be heavily -watered or use high water consumption vegetation.It will have some.artwork.The idea is to help fund that with this line item.Arizona Water Company will also participate in the project.Future consideration for this area would be for the city to dedicate a water conservation easement for the demonstration area.The easement would restrict high water use landscaping within the area.It would reinforce the city's commitment to water conservation by dedicating a low water use area.The easement would be dedicated to present and future water utilities.The concept retains that design elements of the park and helps fund the park project.In future years the district would budget .for water conservation.If the entire design element does not get constructed during the first phase, then it would help build the future phases.The concept Water Utilities Community Facilities District Meeting Minutes of May 3, 2016 Page 2 of 9 • has been based on the approach of the Southern Nevada Water Authority for funding turf removal rebates.They have a program where they pay residents for taking out the turf areas.After the conversion they go from high water use turf to low water use area where they are no longer using grass and high water use plants as well.The easement would have no grass, no sprinklers, no open water and no water features and would be dedicated for low water use and water conservation. Mr. Serdy asked if the golf course water in Gold Canyon comes from the little sewer they have over there.He asked if we have any opportunities for something like that here since ours is all down the drain and on to the sewer. District Director Frank Blanco stated he believes that is effluent that is from the treated waste water at that location.The water district and sewer district currently have an agreement wherein the sewer district was treating the water and recharging it.We were purchasing long term storage credits from the sewer district. In the future there is the possibility to blend some of their treated effluent with raw water from the Central Arizona Project Canal.They can treat that sewer water with a higher treatment process and technology to create something blended with some of the Central Arizona Project water at the treatment plant.There is a pipeline there that has been identified for that so the district would be able to capture some of that water treated by the sewer district. Mr. Serdy asked if the water is always effluent wherever there is an urban lake in Mesa or Phoenix. District Director Frank Blanco stated not always although many times they are. Sometimes the water is Salt River Project water.It is very seldom Central -Arizona Project -water because it is more expensive.When cities have a lot of rights for water, such as Tempe for Tempe Town Lake, they choose to use the water as an economic driver and have a lake that draws people in. Water Utilities Community Facilities District S ,Meeting Minutes of May 3, 2016 'Page 3 of 9 Mrs. Rizzi asked what other types of material they are going to use in those areas without grass. District Director Frank Blanco stated there are several choices and named some facing away from the microphone, and indicated artificial turf could be one. Vice Chairperson Barker commented they would have to have a vacuum for that. Chairperson Insalaco commented he has it in his backyard and his dogs love it .except it does get hot in the summertime. District Director Frank Blanco stated there are some other materials such as sand and gravel.There is a proposal but he would like the parks department to present it as it is really cool, creative and artistic with the elements. Mr. Wilson asked if Arizona Water Company is contributing the same amount as the district. District Director Frank Blanco stated he believes they are giving a little bit more. District Manager Bryant Powell stated they have heard a number close to the same but they have not had -a commitment just yet.They are working hard to get sponsorships for all over the area for the downtown park. They have committed to at least that amount but he thinks it is a little more.They have not seen anything in writing. District Director Frank Blanco stated the water conservation easement restricts high water use within the area, reinforces the city's commitment to water conservation and the easement would be dedicated to water utilities present and future.Later they will talk about how it can become a capital asset for the water provider.That is how Southern Nevada Water Authority was able to fund the rebates on the turf replacements.It became land they could bond for. Water Utilities Community Facilities District Meeting Minutes of May 3, 2016 Page 4 of 9 • Mr. Serdy asked if the chairperson had that in his yard and it gets hot. Chairperson Insalaco commented it does.The dogs will not even go on it. Mr. Serdy asked if it would be as hot as stone or the same. Chairperson Insalaco commented it is very hot.The dogs will not even go on it.He cannot walk on it in bare feet.It gets that hot in June, July and August.It gets real hot. Mrs. Evans asked how long ago his was put down because some of these products are new. Chairperson Insalaco commented his was put down one -and -a -half years ago. District Superintendent Mike Loggins stated the district is proposing a base rate adjustment increase of 5%.There will be no change to the consumption •rates or the tiers.The base rate was a little below the average among competitive cities of the same size and treatment processes.They are right about at the average rate.The consumption rate is about $1.00 higher per tier than any other city.As that is higher than the others they have kept that down this year.The rate increase will change the average user bill by an increase of $1.02 plus taxes for a total of $1.13. It is 2.7% overall.Arizona Water Company in Casa Grande is having a 29% increase on their rates.The district is trying to stay with a slow rate change between 3% to 5% each year or below as in this year.A family of 5 using 15,000 gallons per month will have an increase of $1.52 on the base rate plus taxes for a total of $1.68, overall a 1.3% total increase. It is way lower than what most utilities are asking.Mesa is asking for a 7% increase each year for the next three years.The district is trying to keep the base rate stable so they do not see those huge increases.They took the construction price index and raised each one up on the single family connection fees which is 3.1% affecting new construction only.They have a new fee called the account re-establishment fee.Currently when the winter visitors leave they shut off their water but the district Water Utilities Community Facilities District0Meeting Minutes of May 3, 2016 Page 5 of 9 has to maintain their service and read their meter.They can either stay on and pay the base rate only or they can back charge them for up to 8 months of bills when they come back. Vice Chairperson Barker commented they back charge them for when they are not here. District Superintendent Mike Loggins stated that is correct, when they would not be using any water.It is not something new in the community.Arizona Water Company and the sewer district have been doing this. Vice Chairperson Barker commented they have been doing this for a while.It is not new. Mrs. Evans commented it will be a shock. District Superintendent Mike Loggins stated they will have the customer service representatives explain it to the customers.The fees will not become effective until next April although they will be brought out in October.As they come back it will be explained to them so that come springtime they will be aware of the situation and what is going on.The monthly base rate covers the meter reads, the maintenance service to water lines and water mains, the maintenance of the wells, boosters and tanks and maintaining staff levels.Tentative budget adoption is proposed for May 17 and final budget will be May 21. District Clerk Kathleen Connelly stated May 21 cannot be right. District Superintendent Mike Loggins stated is should be June 21 at the normal board meeting. He gave an update on the treatment plant, stating they have installed the suction tubes on the existing bridge down on the pumps.They were testing them the other day.They circulated the water and discharged it back to the canal so none was wasted.They wanted to make sure they were getting the correct flow out of each pump. Mr. Waldron commented it actually worked. Water Utilities Community Facilities District Meeting Minutes of May 3, 2016 Page 6 of 9 • • District Superintendent Mike Loggins stated it did. Mrs. Evans commented it is so nice when that happens. Mr. Waldron asked who they would talk to if they have questions on the budget. Loggins stated it did. • nice when that happens. District Director Frank Blanco stated they will be having one on one meetings on the budget. District Manager Bryant Powell stated they have completed the one on one meetings for the city and most of them have said they are good.There are other times and Frank can make himself available for further questions. District Director Frank Blanco stated they can get hold of either him, Mike or John. Chairperson Insalaco closed the item with no further discussion and moved on to the next item as this was a discussion item only. RESOLUTION NO. 2016-008, AMENDING AND CORRECTING A SCRIVENER'S ERROR IN RESOLUTION NO. 2013-003 )Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT RESOLUTION NO. 2016-008, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) AMENDING AND CORRECTING RESOLUTION NO. 2013-003 AS PASSED AND ADOPTED ON THE 17TH OF SEPTEMBER 2013; DECLARATION OF INTENT; PROVIDING FOR RECORDATION; REPEALING ANY CONFLICTING PROVISIONS; AND PROVIDING FOR SEVERABILITY; BE APPROVED. MOTION. Mrs. Rizzi SECONDED THE Water Utilities Community Facilities District0Meeting Minutes of May 3, 2016 Page 7 of 9 VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT District Finance Manager John White stated the sales figures are in for April and they are significantly up from March.It could be seasonal.They had a similar spike a couple of years ago as well.He will advise on more information at a later date. ADJOURNMENT ) Vice Chairperson Barker MOVED TO ADJOURN THE MEETING. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Chairperson Insalaco adjourned the meeting at 6:20 p.m. ACCEPTED THIS 02/-rr DAY OF \-0 61 , 2016, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS c DAY OF V,y4ftfiVC , 2016. 2,4/1 John S. Insalaco Chairperson Water Utilities Community Facilities District Meeting Minutes of May 3, 2016 Page 8 of 9 • • • •ATTEST: Kathleen Connelly District Clerk ä4-1 1 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 3rd day of May, 2016.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 2nd day of June, 2016. z //-.7 A,/; Kathleen Connelly District Clerk Water Utilities Community Facilities District0Meeting Minutes of May 3, 2016 Page 9 of 9