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HomeMy WebLinkAbout2016-08-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING August 16, 2016 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on August 16, 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 Mr. Serdy Mr. Waldron Mr. Wilson (arrived 6:04 p.m.) Staff Present: Others Present: (Mrs. Rizzi was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel (arrived 6:15 p.m.) Giao Pham, Utility Director Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Andria Samuels, Senior Administrative Assistant Al Bravo, Public Information Officer Evie McKinney, Utility Billing Supervisor Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 1 of 16 APPROVAL OF MINUTES OF MEETING OF JUNE 21, 2016 ) )Chairperson Insalaco called for a motion. Vice Chairperson Barker MOVED THAT THE MINUTES OF JUNE 21, 2016, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CHANGE ORDERS FOR BACKUP POWER SUPPLY AT CENTRAL ARIZONA PROJECT WATER TREATMENT PLANT AND BOOSTER 2) )Water Superintendent Mike Loggins briefed the board on the item.They are in the process of finishing the plant.During the initial construction and analysis of our design they engineered out the original generator design.They budgeted $400,000 this year to install that.They would have had dual fees for a backup power supply, one from Salt River Project and the second from another generating station, and the cost would have been $2.1 million to get it from Salt River Project in lifecycle costs.They looked at how much it would cost for a backup generator at the site like they have at all of their other sites.They would then have it when they need it.Carollo stated it would be $180,000 to do that in lifecycle costs.There is $132,000 in capital costs with Salt River Project being about $50,000.They were charging the district $15,000 a month to have the redundant service.It did not make sense to go that direction.Currently they are working with Garney out there.They had Garney get proposals for the district from different generator companies and electricians.They want to be able to secure a warranty on them to keep everything together with the same company.They came back with a cost of $158,885 plus the contingency.They are currently in discussion only until they find out where the board is on this.They will come back in September with a contract and ask for approval. Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 2 of 16 Mr. Waldron commented that is a big difference in cost. Vice Chairperson Barker asked if this is part of the budget and what was originally budgeted. Water Superintendent Mike Loggins stated it is part of the budget and was originally budgeted at $400,000.They are well under the budget. District Manager Bryant Powell asked if there is any risk in not going with Salt River Project, even though it would be very expensive. Water Superintendent Mike Loggins stated the only risk is it is on their liability to have it.It will obviously cut operations and maintenance costs to us but it will be a lot cheaper to maintain the existing stuff they have today for a lot cheaper cost than it would be to go through them.That is what they are looking at right now.It is cost effective in the end.Salt River Project is like any other power; they have outages but not as often as we would. The generator should be there when they need it as long as they keep up on the maintenance. PURCHASING THRESHOLDS FOR PROCUREMENT PURPOSES )District Director Frank Blanco briefed the board on the item.In October 2004 the city adopted Ordinance No. 1219 having to do with contract procedures.In December 2004 the water district adopted a policy to follow the same contract procedures as the city. Anything valued less than $25,000 but at least $1,000 requires three written quotes.It is then awarded to the lowest responsive and responsible bidder.Anything under $1,000 can be directly selected from a vendor.They did some research on what that means in 2015-2016 excluding Salt River Project for power delivery and Central Arizona Project for raw water from the canal.Any contract they have or an ongoing intergovernmental agreement as with Mesa are not included in this as they have an actual contract.Chemical deliveries were not included as they have a contract.They had four purchases in 2015-2016 that were less than $25,000 but at least $10,000.They had 60 purchases that were more than $1,000 but less than $10,000.Those are the Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 3 of 16 typical purchases they make and require the formal written quotes.They have to solicit the quotes from the vendors with a minimum of three.They then have to evaluate the quotes to make sure they award to the proper vendor.There were 11 quotes that were less than $10,000 but at least $5,000.This accounts for meters, motors, valves and pipes to maintain the system.It also included maintenance of the air conditioning system.There were 49 that were less than $5,000 but more than $1,000.This is the category where most of their purchases occur.They are small to medium orders for parts, equipment and some services. There was a total of 147 bids.The 64 purchases required 192 written bids which they had to solicit and evaluate.They do not have a lot of staff nor do they have a purchasing agent. This required field staff to make those contacts and try to get some prices.He wanted to present some options.For those purchases $25,000 or more there would be no change in the bid process.There has been about 20% inflation since 2004.They could consider raising those to $30,000.The City of Tempe has a $50,000 threshold limit for formal bids.He believes $30,000 would mirror what Queen Creek is doing.For those items less than $25,000 but more than $10,000 he suggested they keep it the way it is now with three written bids.There is no change from what it is now.The third consideration would be to look at the other threshold range which is between $5,000 and $10,000 where a lot of their purchases fell.The option would be to require three verbal bids on that.The fourth option would be $1,000 or more but less than $5,000 and that would be a direct selection. Mr. Waldron asked how they could hold a company to whatever they verbally bid.It seems risky to do. District Director Frank Blanco stated it would basically be a purchase order to one of their vendors.They would check to see how much it is worth. If it sounds fair they would go with it.It is usually with a partnership they already have.It is someone they trust and do business with. Mr. Wilson asked when they are buying parts if they are talking about individual parts and their prices or the total order. Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 4 of 16 District Director Frank Blanco stated it would be the total order.They may have a certain length of 12" diameter pipe and it would be however many feet of that for the total order. District Clerk Kathleen Connelly stated somewhere in that chapter it also says they have to look at the total of the purchase.If they buy one section of pipe hereand two months later buy another section of pipe and then another section of pipe, they might get up to that $25,000 within that budget year.The code says to look at it cumulatively.That was done with the intention to keep people from splitting purchase orders in order to avoid the bid process.Frank -is talking about things here.There is another section of the code that says if it is a public works project, not meaning public works department, but a public works project like a street, a road or water treatment plant, it has a $100,000 threshold_That is suggested somewhere in state law. It would -be -stuff_ District Director Frank Blanco stated it would be commodities and things they need to keep the system running.He thanked her for the clarification. District Clerk Kathleen Connelly stated some of them may remember that in 2004 the then city manager brought in a company from Las Vegas that did this procurement thing for us.It is time to redo.it. Vice Chairperson Barker agreed. Mr. Wilson asked if they had to replace 100' of pipe they could be held up by going out and getting all the bids and everything until they accumulate enough. District Clerk Kathleen -Connelly stated there is an emergency provision in there. District Director Frank Blanco statedthere is also an emergency clause where they have an exemption.Sole source is another exemption they can go for as well.They have contracts with some of their vendors because Water Utilities Community Facilities District Meeting Minutes of August 16, 20.16 Page 5 of 16 they do go back to that same supply company to buy parts that are eventually going to be over $25,000.The $25,000 is per vendor.It prevents them from going to one company and buying everything from that particular company.They have the commodities contract with Dana Company because they buy a lot of meters from them and a lot of other stuff.They bid this out for them to be able to provide those services. Mr. Serdy commented he mentioned the Town of Queen Creek.He asked if they have a private water company. District Director Frank Blanco stated part of it:is not.Part of it is .the Town of Queen Creek.It used to -be private but the town has purchased it. Mr. Serdy asked if they have a board like them. District Director Frank Blanco stated they have a town council and they run it. District Manager Bryant Powell stated they went out to a utility vote. Vice Chairperson Barker asked if there is a tie-in. District Director Frank Blanco stated he is oiythe conservative side; that is why this is on the table for discussion.He is open for their thoughts on if $30,000 is a more appropriate number or $50,000 for the higher end.-He does not want to _change everything at one time because he ,wants to make -sure they are going in the right direction.,He wanted to show them what he is proposing for the changes this time around and come back with a policy decision on it for the water board.There would be no change for the existing $25,000 or more.For existing $10,000 or more and less than $25,000 there would be no change.For $5,000 or more and less than $10,000 he would like to propose 3 verbal quotes instead of the current 3 written quotes.These are all open to discussion-.For $1,000 or more and less than $5,000 it would be direct select from a vendor.He gave them the breakdown again Water Utilities Community- Facilities District Meeting Minutes of August 16, 2016 Page 6 of 16 on the purchases during the 2015-2016 fiscal year.They solicited 192 written bids/quotes last fiscal year.Under the proposed scenario it would require 12 written bids which would allow field staff to do more field work.It streamlines the process, improves efficiency and provides more flexibility. Mr. Waldron asked for a copy of that information.It is a lot of numbers. District Manager Bryant Powell stated they need some time to consider this.One more thing he would like them to consider is that whatever they do, they do it for both organizations.The finance department is the same finance department.The purchasers are the same in terms of the people doing it.For them to remember two sets of rules and trying to figure it out, it would be really nice if whatever they do they bring to the city council to do for the city.If they do not change it, that is fine. District Director Frank Blanco stated to summarize the next steps, he would like to request three verbal quotes for procurements from $5,000 to $10,000 and to be able to directly select vendors for anything under $5,000.Those are the two changes they are looking at. Mrs. Evans commented they usually get this presentation in their packets.She asked why it was not in their packets this time. District Director Frank Blanco stated he will give them a copy of it. Mrs. Evans commented she does not know if that was Kathy's department.She does not know why they did not get the powerpoint presentation in their packets. District Director Frank Blanco stated they did not submit it as an attachment to the agenda.If it is of interest they will do that in the future. Mrs. Evans commented yes, especially when it is with numbers. Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 7 of 16 Vice Chairperson Barker commented it is better for them to be able to put them together. They can then look them over and see what he is talking about. District Clerk Kathleen Connelly stated they also need to add definitions in this section.What she has seen, not in the water district, other city departments do when it says three written quotes, a staff member will call up a company and they will write down the quote and put that in as fulfilling the three written quotes requirement as coming from them because they wrote it down as opposed to the company who was supposed to submit it in writing. Vice Chairperson Barker commented she is with Mr. Waldron.She asked how the verbal quote work.That sounds like you call and write down what the person says.That sounds like a verbal quote to her. District Clerk Kathleen Connelly stated that is why we need clarification. Vice Chairperson Barker commented you would write down their name, the date and time that you got for that verbal quote. District Clerk Kathleen Connelly stated one would write down that you spoke to so-and- so. Vice Chairperson Barker commented that sounds like a verbal quote.She likes the idea of anything under $5,000 being directly selected because it is ludicrous to have to get written quotes for some of the stuff. Chairperson Insalaco commented it is staff time that is being wasted. District Director Frank Blanco agreed. District Counsel Joel Stern stated back in 2004 and the early 2000's, because the water district had taken on the city code obligations, the way that was done was interesting.There was a committee created by the Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 8 of 16 former city manager and they brought in some consultants to talk about procurements. District Clerk Kathleen Connelly stated she already told them that. District Counsel Joel Stern apologized and stated he had been detained.It is a lengthy process. Vice Chairperson Barker commented it will be they change both the city side and the water side. District Clerk Kathleen Connelly stated the consultants were from another state and barely familiar with Arizona procurement law. Mr. Waldron asked the district director if he could work on some of those definitions and send those to them.It would be helpful.He likes the idea of doing it on both sides. District Director Frank Blanco stated he can also send a copy of the actual ordinance and procurement document so they can see the whole thing. Mr. Waldron commented that would be helpful. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated there is one important thing they would like to talk about tonight and that is the water plant naming and branding process they would like to go through.They would also like to do a presentation on the water district website, an update on the water plant and one on the water system.He showed the current logo.They are trying to come up with something that shows what kind of service they think about when thinking of the district.They want to be as Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 9 of 16 positive as possible.They see an opportunity with the construction of the new water plant and naming it.If the project brand or vision starts in the past it is most likely to become extinct as times change.The options are more limited in the present since they are using today's available resources. It is wide open in the future and a blank one could just change the world.There was a word in there but he thought he would leave it blank because of the possibilities.This comes from Forbes Magazine,an online magazine.He thought it might be important to start off with.When they are looking for names for the water treatment plant or other names, they are looking for a name that is part of our brand.There were some options brought up:The Apache Junction Surface Water Treatment Plant; Apache Junction Ironwood Water Plant; Apache Junction Water Purification Facility and Superstition Mountain Clearwater Plant.By default, the Apache Junction Surface Water Treatment Plant is what is on the plans and what it is known by right now. Treatment is common.It is a water treatment plant for the most part.Treatment could have a negative connotation questioning what is wrong with the water.He questioned if they want to have that in the name.It is known by the Apache Junction Ironwood Water Plant by Central Arizona Project mainly because it is located on Ironwood and the Central Arizona Project Canal. Chairperson Insalaco asked why they should go with anything fancy.He has it right there. District Director Frank Blanco stated it is very common for the name of the street to be included in the name.The City of Phoenix facilities have a 23rd Avenue water plant, a 24th Street plant, originally called the Squaw Peak Plant but that is not appropriate anymore, and then there is the Deer Valley Water Treatment Plant that is actually on Dunlap.The Union Hills Plant is located on Deer Valley Road.There are exceptions. Another option is the Apache Junction Water Purification Facility.This name may look to the future of blending with treated effluent from our wastewater and purification.This alludes to the future of direct, potable re -use.It brands the water as being pure.Superstition Mountains Clearwater Plant or First Water Plant ties us into the Superstition Mountains.It brands the water as being clear or possibly the first plant in Pinal County and the first water hiking trail.Other considerations have been the Gold Dust Water Treatment Plant Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 10 of 16 relating to the mining culture and the Greater Apache Junction Water Treatment Plant, identifying it as a regional facility. Vice Chairperson Barker and Mr. Wilson both commented they like that. Vice Chairperson Barker commented with the gold dust one she sees gold dust floating in the water. District Director Frank Blanco stated that might not be good. Vice Chairperson Barker commented or it might be great.She could get her strainer out. District Director Frank Blanco stated this is ultimately an opportunity for public participation and their plan is to have a press release announcing a short list of names and offering a chance for a prize for public participation.The thought is to allow city wide participation or regional participation, not necessarily limited to customers.The water board will make the final choice on the list of names.He would like to have a short list that they could make available to the public so they could vote on it and come up with a name and ultimately the water board would choose the name.They could always override the vote in this case. Mr. Serdy_ commented they could bring the youth council out of retirement for this. District Clerk Kathleen Connelly asked how he would keep people from San Tan or Queen Creek from participating. District Director Frank Blanco stated that is why he is thinking it should be a regional thing..They are looking at this as a Greater Apache Junction water treatment facility.He does not know if they want to limit it to citizens only.That could be something they could discuss and decide. District Clerk Kathleen Connelly stated her own personal preference is to make sure the name of Apache Junction is in there so we do not start ,giving away our assets. District Director Frank Blanco stated they would also like to bring this to the ribbon cutting ceremony in November.At that Water Utilities Community Facilities District Meeting:Minutes of August 16, 2016 Page 11 of 16 time they would like to reveal the sign.They do have a place for the sign. Vice Chairperson Barker commented she likes the Greater Apache Junction.It is big, it sounds large and encompassing and regional. District Manager Bryant Powell asked Frank what he would like the board to do tonight. District Director Frank Blanco stated he would like them to give him direction. Chairperson Insalaco commented maybe some suggestions on what he has here. Mrs. Evans asked if they could go back to where he had them written. District Director Frank Blanco asked if he could send them a list of the names and have them short list them and move forward from there. The board consensus was he could. Mr. Serdy asked if they could add others as well. District Director Frank Blanco stated they could. Senior Administrative Assistant Andria Samuels stated she was there to give them an update on the new website.They had the kickoff meeting on August 1 with Speyer Advertising.They had the lowest of three written quotes.They are currently creating the content, writing the script, designing the pages and will be sending the pages for revision.They will then receive training on how to control and use the website.They are looking at a 6- 8 week timeline depending on the number of revisions.They will bring more updates when they have some screen shots.Speyer Advertising is only designing the website.They also have the payment portals where customers can do account management.They received three written quotes and chose Paymentus, a provider of uniform payment platforms.They are able to give the district services in all stages of the billing process from presentment, which is ebills, and billing notification to payment type, which Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 12 of 16 is being able to accept and process all forms of currency.They will have payment channels and Interactive Voice Response where people can call in and make a payment after pressing one or two. It will work after hours, if the phones are busy or if they do not need to talk to a person.They can access the payment portal through their mobile device, tablet or desktop.They are making it convenient.Paymentus will be hosting and designing it.They will also include the analytics behind it.They will get all the reports for them.If they need to put messages on the payment portal regarding shorter office hours on holidays or emergency closures they will be able to do so.The customers will be able to have more interactive communication.The payment portals will be available 90 days after they sign the agreement.They are still hammering out the finer points of the agreement.They have been collaborating with the finance department for a seamless transition with the possibility of upgrading the financial system in the future.They do not want the customers to know anything is going on behind the scenes until they receive the upgraded, enhanced payment portal access and everything is just the same but better in terms of accessing their account information, bills, statements and everything like that. Mr. Waldron commented he appreciated them jumping on this.It was a large project with a lot of work getting the website up. There were some problems with the other one that were interesting.One of the links went to something Asian or Chinese. District Superintendent Mike Loggins stated the water treatment plant is progressing on time and within budget.They had substantial completion at the end of June.They have been going through all the analyses out there to get through all the chemical dosing.They have not sent it to all the customers yet and they are a couple of weeks out before they do that.They have some monitoring requirements they have to fulfill with Arizona Department of Environmental Quality but they are moving towards that quickly.They are getting close to that.He showed them pictures of different things they have been doing out there.They have received approval of construction from the Arizona Department of Environmental Quality.They can now deliver water to the customers since it was built according to plans.They have the certificate of occupancy from the city. Everything is up to code and all inspections have been done. Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 13 of 16 They are ready to move in.They can see from the picture that the water looks crystal clear even before it goes through the final filter.He showed them what the Central Arizona Project water looks like as it comes in and how it is made crystal clear at the end. District Clerk Kathleen Connelly stated that is Oak Creek. Water Superintendent Mike Loggins stated they are giving them an example of where they are at with water purification.They go from something that looks dirty to something clean and pure. After making the clean water they make mud for de -watering. This is one of the questions that was brought up earlier; what they do with the sludge management.They were trained last week.It is called a belt and filter press.It is like taking your hand and squeezing the water out of it.It is a long conveyor belt that squeezes it together at a certain pressure to create something like Playdoh.It dries it out to this cake. He showed a picture of the de -watering process.It comes in as 1% solid, like Koolaid, they add a polymer to it that reacts with it and turns it into an oatmeal consistency.They divide it up and drain the water out whereupon it goes to the belt and filter press.It comes out the other side and is put in the dump truck.It goes from 1% solid to 28% solid.They are working with Republic Services to haul off the sludge to the dump so they can manage it out there. Vice Chairperson Barker asked what happens to sludge when rain hits it. Water Superintendent Mike Loggins stated some of it will drain off.That is part of the test they have to do before they can send it to the dump.They put in a filter to make sure not too many contaminants come off of it if water is added back to it. Vice Chairperson Barker commented if it is in the landfill it will be exposed to moisture. Water Superintendent Mike Loggins stated the landfill gave them direction on what tests it has to pass before it can be delivered to them.They are working with the lab to get all the information so it can be provided to them and they can accept it from us.They are getting very close.The operator took a sip today of what he was producing.He is feeling more comfortable Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 14 of 16 drinking the water.They still have some chemical analyses they need to do regarding the quality of water before they send it to the customers and it enters the pipes.They are working that stuff out.They want to make sure there is a smooth transition as they bring this into the distribution system. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Insalaco adjourned the meeting at 6:43 p.m. ACCEPTED THIS it-771 DAY OF elf_7115166ve..,2016, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 2016. ATTEST: ie-r)4 _1 (//John S.-Insalaco Chairperson DAY OF Od772966e.., 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 meetingof the Water Utilities Community Facilities District of the City of Apache Junction, -Arizona, held on the 16th day of August, 2016.I further certify that the:meeting was duly called and held and thatia quorum was present. Water Utilities Community Facilities District Meeting Minutes of August ,16, 2016 Page 15 of 16 Dated this 19th day of September, 2016. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 16, 2016 Page 16 of 16