Loading...
HomeMy WebLinkAbout2016-09-06 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING September 6, 2016 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on September 6, 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 Andria Samuels, Senior Administrative Assistant Al Bravo, Public Information Officer PROCUREMENT OF FLEET VEHICLES FOR CURRENT FISCAL YEAR Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 1 of 13 )Water Superintendent Mike Loggins briefed the board on the item.This is part of the 2017 budget.They are requesting to purchase one replacement 2016 Ford F-150 truck and one replacement 2017 Ford F-250 truck for a total not to exceed $71,500.This goes back to their pattern of replacing two vehicles each fiscal year.They can keep them updated, using them instead of repairing them all the time. Mr. Serdy commented the city vehicles are sometimes sold at auction or given to other cities. He asked what happens to the old vehicles for the water district. Water Superintendent Mike Loggins stated it goes through the same city process, being taken to auction and sold off.The proceeds will come back to the district. Mr. Serdy asked if they ever trade them to parks and recreation or some other department. District Manager Bryant Powell stated he does not believe they have ever done that but there is no reason they could not.He knows there are a few cities with intergovernmental agreements. District Legal Counsel Joel Stern stated if the city attorney was talking he would say they have done that with intergovernmental agreements for usually police vehicles.That is something he may want to discuss with the city manager when it comes to parks and recreation vehicles. Vice Chairperson Barker commented they are talking about water district vehicles. District Legal Counsel Joel Stern stated water or utility related. District Clerk Kathleen Connelly stated it is the district manager. District Legal Counsel Joel Stern stated he knows that.He knows it is water but sometimes they are comparable to parks and recreation.He has seen that Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 2 of 13 with the Ford F -250s.He has seen those with some of the other cities and towns.They get those as park ranger trucks. Water Superintendent Mike Loggins stated he believed two of their vehicles were from the city.They traded them to us at some point. Mr. Serdy commented they already came from the city and odds are they are not going back. Water Superintendent Mike Loggins stated that is correct.These were different ones but he knows some of the other vehicles they have are transferred from the city interdepartmentally. Mrs. Rizzi asked where people can find these vehicles that go up for auction. Water Superintendent Mike •Loggins stated it is part of the state contract,.He believes public works could answer that question better. District Manager Bryant Powell stated they can get the information for her.He wants to make sure they are exact on it.He believes it is through the state.auction process if he remembers correctly. Mrs. Rizzi commented just so people know where to find it as they get those questions sometimes. Chairperson Insalaco called for a motion. Mr. Waldron MOVED THAT THE PURCHASE OF ONE NEW REPLACEMENT 2016 FORD F-150 SUPER CREW XLT TRUCKIANDiONE NEW REPLACEMENT 2017 FORD F7250 TRUCK FROM SAN TAN FORD: THROUGH THE COOPERATIVE_ ARIZONA STATE CONTRACT #K8B/ADPS012-016671 FOR A TOTAL AMOUNT NOT TO EXCEED $71,500.00 BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 3 of 13 VOTE:Unanimous. The motion carried. CONSTRUCTION CONTRACT WITH GARNEY COMPANIES, INC. FOR THE INSTALLATION OF A GENERATOR AT THE WATER TREATMENT PLANT District Director Frank Blanco briefed the board on the item.It is for the backup power supply for the water treatment facility.They talked last time about why they were purchasing a backup generator and that they were looking at a redundant system from Salt River Project. It was too expensive to do it that way.They are seeking approval to enter into a construction agreement with Garney Companies for the installation of a new generator at the water treatment facility in an amount not to exceed $174,096.Garney is the general contractor for the facility.This is a single source procurement.The standard procurement would require bid documents, a notice inviting bids, publication, formal bidding process and it takes anywhere from 4-6 weeks.The single source procurement is the existing general contractor, the design and specifications are complete and the agreement has been drafted. It has been reviewed by the attorney.The new contract will require mobilization so they have to pay for a contractor to come out and set up their equipment to do the job.The sole source procurement requires no mobilization as they are already on site.There is also a requirement for new bonding insurance with standard procurements.With the general contractor that is already in place.There is an increased risk with a standard procurement as he is not sure what contractor they would get. He is hoping it would be a reputable contractor but there are times when they run into a situation where a risk is involved in hiring a new contractor versus one that you have already been working with.By using the single source procurement process they are mitigating the risk.They have incurred some debt with the new water facility by going through the standard procurement process.They are extending the waiting time in having a complete facility they can fully utilize.They have already incurred debt to build the plant by not getting any revenue out of the facility.They are currently in the testing process and making sure everything operates properly.The sooner they have the entire facility built and the generator in placethey will Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 4 of 13 then have a fully built facility, be able to fully utilize it and begin generating revenue at the facility. Vice Chairperson Barker asked if this is part of the plant budget. District Director Frank Blanco stated they have a $400,000 budget for this fiscal year for a generator.They are doing it this way so they do not have to go through Water Infrastructure Finance Authority.They have a contract with Water Infrastructure Finance Authority of Arizona and they are required to pay prevailing wages in that contract.It is more expensive for us to do it that way. Additionally, this part of the contract was not in the Water Infrastructure Finance Authority document.This generator was not approved by them to be built.However, it was approved as part of our budget. Vice Chairperson Barker asked if this would have any impact on our agreement with Water Infrastructure Finance Authority. District Director Frank Blanco stated it would not.It is outside the Water Infrastructure Finance Authority contract.It is a separate contract. Mr. Serdy asked him to put the size into perspective.He knows one can go to Home Depot and buy a 600 watt generator.He asked how much bigger it is and what it can do. District Director Frank Blanco stated this is 600 kilowatts. Mr. Serdy asked if it is 600 times stronger than the one they can get at Home Depot. District Director Frank Blanco stated 6,000 times stronger.The generator will run the entire facility and keep the process going.They would not have to shut down and depend on the City of Mesa to deliver us water. That is the other advantage to it.The additional cost is contrary to the district's interest for going through the Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 5 of 13 standard procurement process and the advantage of going on the single source procurement are paramount to the district's interests. Mr. Waldron asked when they would put that in. District Director Frank Blanco stated they are hoping to have this in place within 6 weeks. Mr. Wilson asked if the fuel tank would be above ground or below ground. District Director Frank Blanco stated it will be an above ground tank.It is part of the generator itself.The generator gets exercised once a week to make sure that it works and gets proper maintenance. Chairperson Insalaco called for a motion. Mrs. Evans MOVED THAT APPROVAL BE GIVEN FOR THE CONSTRUCTION CONTRACT BETWEEN APACHE JUNCTION WATER UTILIITES COMMUNITY FACILITIES DISTRICT AND GARNEY COMPANIES, INC. FOR THE INSTALLATION OF A GENERATOR AT THE WATER TREATMENT PLANT IN THE AMOUNT OF $158,269.21 PLUS 10% FOR CONTINGENCIES IN THE AMOUNT OF $15,826.71 FOR A TOTAL AMOUNT NOT TO EXCEED $174,096.00; AND THAT AUTHORIZATION BE GIVEN FOR THE CHAIRPERSON TO SIGN THE CONTRACT PENDING FINAL APPROVAL AS TO FORM BY THE DISTRICT LEGAL COUNSEL. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DIRECTION TO STAFF ON LIST OF NAMES FOR WATER PLANT AND PROCESS TO BE USED TO GATHER PUBLIC INPUT District Director Frank Blanco briefed the board on the item.They have been provided Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 6 of 13 with a list of potential names and he had asked for additional ones if they wanted to add to it.They have copies of the names.He would like a list of preferred names or they can discuss it and come up with some names tonight.More important is the preference for community involvement.He asked if they would like to have community involvement or not and, if so, what their preferred methodology would be. Chairperson Insalaco called for any suggestions. Mr. Serdy commented he would like to throw in Greater Superstition Area Water Treatment Plant. Vice Chairperson Barker commented she would go for the simpler one of Apache Junction Ironwood Plant.Water treatment infers we have something wrong with our water.It kind of gives a negative impact. Mr. Waldron commented he would like to see the public input.He would like to see something in the bill directing them to a public website or something and do a survey to get the public involved in it. District Director Frank Blanco asked so far they have two names they are considering or just one name. Mr. Wilson commented he wanted to suggest the Greater Apache Junction Water Plant.He likes the last line but not the treatment part of it. District Director Frank Blanco stated they would like to remove the treatment part of it.So far he has heard three names. Mrs. Rizzi commented she likes the Greater Apache Junction or Greater Superstition.She likes the greater part of that.The water treatment does not say anything negative to her.When she thinks of water treatment she thinks of purifying her water and making it better.She is not stuck on the treatment if they take that out.Like Dave, she would like to know what the public thinks. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 7 of 13 Mr. Serdy commented he would like to take the treatment out of his suggestion.If we go on Dave's idea to let the public decide, they might want to eliminate some of them, like scratching the one Robin did not like.They can simplify the list and ask for others. District Director Frank Blanco stated so far they have three names.He asked if there were any others before he moved on to community involvement. Chairperson Insalaco asked if they are giving these to the public and letting them pick from this list.They are not adding any. District Manager Bryant Powell stated he thinks the question is that they figure out the three or four or whatever they are going to end up with and then discuss them.If they do the public they need to decide what public is or if they are just going to do inserts to the customers. Vice Chairperson Barker stated they can go in their water bills.She asked about First Water and that it has two different inferences.It is First Water or it is the first water plant. District Clerk Kathleen Connelly stated not too long ago they had a lot of confusion with Bureau of Reclamation because the water district name was not the same as the documents under which the water district was created.She asked if there would be an issue with this. District Director Frank Blanco.stated there will not.That had to do with ;Apache Junction Water Company so they were perceived as being a public entity.They changed that to Apache Junction Water District for that reason: District:Clerk .Kathleen Connelly stated she remembered there was some confusion because we were listed differently on the property tax records. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 8 of 13 District Director Frank Blanco stated that and the Water Infrastructure Finance Authority loan has the water company name, but that was changed. District Manager Bryant Powell asked what about for the water plant name. District Director Frank Blanco stated he does not believe so. Chairperson Insalaco commented he agrees with the rest of them.If they are going to do it, he would like him to leave the word treatment out.They can put all the names everyone has suggested, which are good, but leave the word treatment out.It sounds like there is something wrong with the water. Mrs. Rizzi asked what areas we are servicing. District Director Frank Blanco stated that is part of the community involvement.They are proposing either an online survey which does not limit us to our customers or have an insert through the water billing system where it only reaches our customers and only they can participate.It could also be in a local printed medium, a news release, but they would have no control over who participates in that.They could also do something else that the board may think of.She is right that they do not serve two-thirds of the community.Two-thirds of the community are served by Arizona Water. District Manager Bryant Powell asked if he could give the area in general. District Director Frank Blanco stated the area in general is south of Old Nest to south of Baseline and west of Idaho east to the:city limits. Chairperson Insalaco commented he thinks it should go just to the billing customers. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 9 of 13 Mrs. Rizzi commented she likes the name Superstition Area Water Plant.She asked if anyone else liked the name. District Director Frank Blanco stated we now have four.He asked Vice Chairperson Barker if she had another one to add.He asked if they want as many as six or keep it to a lesser number. Mrs. Rizzi commented they should give them three. Vice Chairperson Barker commented they need to narrow it down. District Director Frank Blanco stated give them three. Vice Chairperson Barker agreed, adding otherwise they get so many hits on each one of them that it becomes impossible to find a consensus. District Director Frank Blanco stated of the three names they are suggesting the Greater Apache Junction Water Plant and the one Mr. Serdy suggested. Mr. Serdy commented going off Mrs. Rizzi's suggestion he would go with Superstition Area Water Plant. District Director Frank Blanco asked if that was another one they wanted to include. The council consensus was yes.He asked what the third one would be. Mr. Serdy commented he thought that was the Ironwood one. District Director Frank Blanco stated that would be the Apache Junction Ironwood Water Plant. Vice Chairperson Barker commented the main reason she was interested in that is because Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 10 of 13 the time will come when we do not have just one plant.There will be multiple ones.This would identify it geographically. That was her thought behind it. Mrs. Evans commented she actually likes Greater Apache Junction Ironwood Plant. Chairperson Insalaco commented that sounds good. Mrs. Rizzi commented she liked that. District Director Frank Blanco stated they would drop water and just say Ironwood Plant. He asked if everyone was in agreement with that. District Clerk Kathleen Connelly stated they have three. District Director Frank Blanco stated they are in agreement that there be community involvement through the water billing system. District Manager Bryant Powell asked how they are going to get it. District Director Frank Blanco stated they would ask them to mail it back with the bills. Mrs. Evans asked what if they pay online. District Director Frank Blanco stated that is a great question.They need to work through the details but they will figure out how to do that so everybody can participate.They could perhaps have something in the lobby as well. Assistant City Manager Matt Busby stated they could do something like a link to a survey monkey.It would a unique link that only the customers could access. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 11 of 13 District Director Frank Blanco stated they could include the link for only their customers to go to. Assistant City Manager Matt Busby stated they are only sending them three names.He asked if they are wanting the customers to decide the name or does it come back for a board decision.They could send out five names and have them decide on the top three and the board would select from among those.He asked if they wanted the customers to have the final say. Vice Chairperson Barker commented let the customers decide.They have said the ones they like.Any one of the three they choose should be agreeable with the board. they will do a good job. public pick. commented it sounds good to him. Mr. Serdy commented he thinks Mrs. Rizzi commented let the Chairperson Insalaco Mrs. Rizzi MOVED THAT THE THREE NAMES WERE GREATER APACHE JUNCTION WATER PLANT, SUPERSTITION AREA WATER PLANT AND GREATER APACHE JUNCTION IRONWOOD PLANT. Vice Chairperson Barker SECONDED THE MOTION. District Clerk Kathleen Connelly asked if they wanted to use the water billing system in some manner. Vice Chairperson Barker commented they do. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 12 of 13 DISTRICT MANAGER REPORT None. ADJOURNMENT adjourned the meeting at 6:23 p.m. ACCEPTED THIS it -rd ) Chairperson Insalaco DAY OF , 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: Kathleen Connelly District Clerk Rrd-DAY OF 06 -roetee , 1 1 /1. John S. Insalaco Chairperson WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the Water Utilities Community Facilities District of the City of Apache Junction, Arizona, held on the 6th day of September, 2016.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 20th day of September, 2016. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 6, 2016 Page 13 of 13