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HomeMy WebLinkAbout2017-01-17 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING January 17, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on January 17, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Barker Mrs. Evans Mrs. Rizzi Mr. Struble Mr. Waldron 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 Kent Brooksbury, District Controller Andria Samuels, Senior Administrative Assistant Evie McKinney, Utility Billing Supervisor Al Bravo, Public Information Officer APPROVAL OF MINUTES OF MEETING OF OCTOBER 18, 2016 Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 1 of 10 )Chairperson Serdy called for a motion. Mrs. Barker MOVED THAT THE MINUTES OF OCTOBER 18, 2016, BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated he attended the Colorado River Water Users Association annual conference in December. All seven states and the Indian tribes were represented.The networking opportunities are really good.You meet other state officials and local officials you do not normally talk to.The Colorado River Basin is in a severe drought.Lake Mead was at its lowest elevation since the 1930s.The goal is to keep the elevation at 1020, which is sea level.The elevation on July 1 was 1071.6.There is no shortage projected for calendar year 2017.The most water they can get into Lake Mead is 1219.6.A tier one shortage can be declared at 1075.The current level is 1083.04. Chairperson Serdy asked if we are having one of the wetter winters for several years.He asked how many years like this would it take to get it back to almost normal. District Director Frank Blanco stated right now is a weather occurrence versus a climate change.It would take about 4 to 5 winters being this wet to really make a difference on the lake levels but we are headed in the right direction.The lake level of 1083 is promising. Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 2 of 10 Mrs. Evans asked if the dip is a normal summer dip because January 2016 has it just below the 1085 and January 2017 is about the same height. District Director Frank Blanco stated that is a result of the Bureau of Reclamation managing the lake levels.It would be normal to see a lower elevation in the summer.If a short tier shortage was declared Arizona would see a reduction of 320,000 acre feet.Nevada would have a reduction of 13,000 acre feet and Mexico 50,000 acre feet.If the elevation is as low as 1025, the reduction is increased.They would see less water coming into Arizona, Nevada and Mexico.These are 2007 guidelines.The lower basin states, of which Arizona is a part of, are currently working on a drought preparedness plan in order to make sure they do not get down to the lower elevations. They will do anything they can to make sure they do not get down to the shortage levels.As we start seeing a reduction in water deliveries, even at that 480,000 reduction at 1025, it is important to see that it does not go into our municipal and industrial priority which is the pull we have for our entitlement.It does go into the non -Indian agricultural priority water.There is approximately a 50% risk of a shortage in 2018, with the risks continually increasing with each successive year.Central Arizona Project is committed to continuing conservation programs to reduce the possibility of a shortage.They are working on a drought contingency plan for the lower basin states.They are now working on an intergovernmental agreement with Mesa to replace the existing agreement which was due to expire December 2016 but there must be a two-year notice which neither party gave.The existing one is now good for another two years.The new agreement they are working on will incorporate some of the changes reflecting the reduced reliance on Mesa to treat our water. Chairperson Serdy asked if we still get charged if we do not use even one gallon of water. District Director Frank Blanco stated that is a good question. The charges have been dramatically decreased.They were staying around $15,000 per month for reserve capacity from Mesa.It is now down to $600.It does not make a big difference for us now. Another section will enable the water district to recover some Central Arizona Project water that is currently being stored underground at the Salt River Project Groundwater Savings Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 3 of 10 Facility.They develop water credits by storing the water and they can recover that water through Salt River Project's wells by putting it into the canal system and treat the water at the Val Vista Water Treatment Plant.It is a different approach to recovering water as in the past we recovered it through our own well system.In the event of a shortage on the Central Arizona Project canal system or the Colorado River or a failure of the canal from a catastrophic event, they would have the availability to recover some of those credits through Salt River Project's wells and their canal system and have Mesa treat the water.The intergovernmental agreement will also involve Salt River Project for the use of their wells to recover the stored water.Details are being worked out.The Val Vista Water Treatment Plant treats 220,000,000 gallons a day so the amount of water the district would be receiving is minimal and would not impact their customers.The Signal Butte and Baseline interconnect is the key factor that will allow us to get the water.He had a discussion with the City of Phoenix this morning on how to fully utilize the district's Central Arizona Project entitlement.It is important to do that.If they are not using the full entitlement, at some point it could come to a point where it is decided they do not need that much water if they are not using it.The district needs all the water and needs to make full use of it.They are partnering with Phoenix to determine ways to fully utilize it.For the first time Phoenix made a complete, 100% order of their entitlement for 2017, which is over 128,000 acre-feet.Tucson stores 20% of Phoenix's water for future delivery.The same type of approach will allow the district to fully utilize its water.The agreement will also allow the development of long term storage credits for both parties.They are also looking at a recharge facility in Apache Junction.The way the current rules are stated, the district can store water anywhere in the Phoenix Active Management Area.It does not have to be in Apache Junction.They have not seen any significant benefit from the small recharge that does occur in the city.They want to start bringing that closer to the aquafir that the district is actually taking water from.Phoenix could be a good partner; they have a lot more money than we do.They do want to have additional options on where they can store their water.It is an idea they talked about this morning. Mr. Waldron commented water is just so complicated it drives him crazy.He asked why they would be storing water in Tucson. Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 4 of 10 District Director Frank Blanco stated they store water in Tucson.When Tucson recovers that water from their wells, keep in mind that Tucson is a groundwater system.They do not deliver any surface water.They do not treat Central Arizona Project water to deliver to their customers.They recharge the Central Arizona Project water, then recover it from their wells and serve their customers.When Phoenix stores water in Tucson, and Tucson recovers the water that Phoenix stored, then Phoenix can get the water that Tucson did not take out of the canal because they pumped it out of the ground.It is an exchange agreement. District Manager Bryant Powell stated Tucson sounds like it could be like Lake Mead.It keeps going down and down and down. District Director Frank Blanco stated one could think it could happen over time.That is why they recharge the water.It is a pretty good place to recharge water.Apparently the water does percolate into the ground and then they pump it out with the wells.This year the district has done a system water plan. Arizona Department of Water Resources required the creation of a system water plan in 2007.There are three components to that plan.There is a water supply, drought preparedness and water conservation plan.They did an update this year.It is required every five years.This is their second five-year update submitted December 29, 2016.Because the district does have a designation of assured water supply they did not have to supply a water supply plan.Because the district is located in the Phoenix Active Management Area we did not have to do a water conservation plan.They focused on the drought preparedness plan this year.Andria worked very hard on gathering up all the research that had to be done to make sure the district was in compliance with the requirement.There are three drought response stages:alert, warning and emergency.Those are the stages we identified for our plan.Stage one alert indicators are those indicators they have to provide to know if they are in stage one alert.The first indicator is precipitation where if the previous 12 months they get 70% to 90% of the average rainfall, in other words below average, or Lake Mead elevation is at or below 1075, then that could be a trigger to declare a stage one alert.It has not happened yet.The district manager recommends an alert to the water board, the water board decides and declares the alert if it is necessary.He is trying to make them aware of the plan they have in place.As things progress Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 5 of 10 and the elevation continues to get lower and lower, they may have to do something like this. Chairperson Serdy asked if we have had these in Arizona.He thinks he has seen where this has happened in California. District Director Frank Blanco stated they have not seen it locally in Arizona.In California they did.California got a lot of rain and they think they are fine now but it could be temporary. Vice Chairperson Wilson commented Colorado has also gone through it. District Director Frank Blanco stated a stage one alert would be voluntary water use reduction by citizens by 20%; that would be the request.It depends on people doing what they are being asked to do.The current average level of precipitation is about 13 inches for Apache Junction.In 2016 our precipitation was 9.34 inches which is 70% of the average.Those metrics could trigger an alert but we are not going there yet.Lake Mead elevation was at 1083 which took us above the 1075 which is the other piece of the trigger.The district manager can recommend the drought response stage declaration to the water board but it would be up to the water board to declare it.He is not recommending the stage one alert.The board has been given the actual plan that has all the details. District Superintendent Mike Loggins stated the board approved the purchase of a 600 kilowatt generator in October for the surface water treatment plant.They have finished installing it.They are now prepared for a power outage and the water plant will not shut down because of one.It was completed on time with no change orders.They are not asking for any extra money.In December 2015 76% of our monthly production came from Mesa.As the treatment plant came on line this past year, it was 99% the district's own water.The surface water treatment plant was 80% of it, 19% from the wells and 1% from Mesa.They have the 1% because they want to keep the water line clean and rotate the pumps through in case they are needed. Chairperson Serdy asked if they have a well they were not using for a while.He asked if all the wells were producing now. Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 6 of 10 District Superintendent Mike Loggins stated they currently have three wells.One they are not currently using as it is out of service.The other two wells are in service.They had some issues with arsenic and other things with the one out of service.It has not been in service for at least five years. Senior Administrative Assistant Andria Samuels stated they are coming up to the sixth annual Apache Junction Water Festival. It will be held Thursday morning, April 27, 2017.She will be sending out reminders and encourages participation.Last year they had four schools, thirteen classes and over 400 students participate with over 45 volunteers.Their help is recognized and appreciated. Mrs. Barker commented they enjoy it. Senior Administrative Assistant Andria Samuels stated the district website will be going live Monday, February 6, 2017. She showed them a screen shot of the front page. Chairperson Serdy commented they have had some amazing sunsets last week they could put on the cover page. Senior Administrative Assistant Andria Samuels stated pictures are appreciated.These are our pictures.The current one is a sunrise over the pumps that Treatment Plant Operator Brian Warner took. Chairperson Serdy commented they also need one for the other angle of the sun, sunset. Senior Administrative Assistant Andria Samuels stated the website is very streamlined and horizontal.They have search buttons.It welcomes people to the web page.There is space for the upgraded payment portal when it comes on line.They have community resources that were not available before like a water calculator that estimates their bills.The water quality reports are on line.If they go to pay their bill it will go to the existing payment portal but in the future it will go to the new one.They have a breakdown explaining the rates, what they are and what has happened to the rates.She will also be highlighting the treatment plant.They also have a page on their values and why they want to be their water district.They Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 7 of 10 have information on their hours and directions on how to find the office.It is much more user friendly. District Manager Bryant Powell asked who gets the email/web mail water@ajcity and the telephone number. Senior Administrative Assistant Andria Samuels stated this is on the main line so it goes to their front counter.After hours she believes it goes to their on call person.The web mail water goes to Evie and her people.It goes directly to their outlooks; it does not go into a hole anywhere.It goes straight to them.This allows them to interact more with their customers.It lets them know very clearly what the announcements are.When we have any kind of planned water outages or emergency water outages, there will be a banner that flashes at the top saying "Alert -Alert".They can click on it and it will give them more details on what is going on. Mrs. Barker commented nice job.It looks good. Mrs. Rizzi commented she cannot wait to use it. Senior Administrative Assistant Andria Samuels stated the second component of the website is the payment portal.They have a fully executed agreement with Paymentus as of December 28, 2016. They are ready to start development, testing and get ready for launch.April 1 is the anticipated launch date. District Manager Bryant Powell commented in the effort of integrating with our school system and the charter schools they had four schools for the water festival. Senior Administrative Assistant Andria Samuels stated three from Apache Junction and one from Mesa. District Manager Bryant Powell asked if the three elementary schools came. Senior Administrative Assistant Andria Samuels stated that is correct.If they want more schools they need more volunteers. They can do it but they would need volunteers to staff all the rotations to make sure everyone can get taught without burning out and getting dehydrated. Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 8 of 10 DISTRICT TREASURER REPORT None. ADJOURNMENT ) ) Chairperson Serdy called for a motion to adjourn the meeting. MOTION. No roll call vote. the meeting at 6:30 p.m. ACCEPTED THIS Mrs. Barker SO MOVED. Mrs. Rizzi SECONDED THE Chairperson Serdy adjourned DAY OF , 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS DAY OF 2017. ATTEST: Kathleen Connelly District Clerk Jeff Serdy 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 Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 9 of 10 Utilities Community Facilities District of the City of Apache Junction, Arizona, held on the 17th day of January, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of February, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of January 17, 2017 Page 10 of 10 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING February 21, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on February 21, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Mrs. Barker Mrs. Evans Mrs. Rizzi Mr. Struble Mr. Waldron Staff Present: Others Present: (Vice Chairperson Wilson was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Giao Pham, Utility Director (arrived 6:10 p.m.) Frank Blanco, District Director Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Kent Brooksbury, District Controller Evie McKinney, Utility Billing Supervisor Al Bravo, Public Information Officer APPROVAL OF MINUTES OF MEETING OF JANUARY 17, 2017 Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 1 of 8 )Chairperson Serdy called for a motion. Mrs. Barker MOVED THAT THE MINUTES OF JANUARY 17, 2017, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PRESENTATION OF WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA'S DRINKING WATER PROJECT OF THE YEAR AWARD )District Director Frank Blanco asked Susan Craig to present the award. Ms. Susan Craig, Communications Director of the Water Infrastructure Finance Authority of Arizona, stated she attended the ribbon cutting for the Superstition Area Water Plant and met the team that made it a success.She was thrilled the district was nominated for the award and happy when the advisory board selected the district as the winner.They are a governmental organization that provides funding to improve water infrastructure throughout Arizona for safe drinking water and keep the rivers and lakes clean.Many Arizona cities choose them because of their low interest rates. The communities save money by funding their projects through them which they then pass on to their customers.They have partnered with the district on multiple water projects over the last several years.The Project of the Year awards were created to recognize the most exceptional Water Infrastructure Finance Authority project demonstrated by their performance and resolving water quality or public health issues, cooperative funding efforts, sustainability and outstanding project management.This project exhibits many of those attributes. The $9 million project was selected based on the district's commitment to protecting public health through investment in a state of the art water treatment facility.The city worked with policy makers and stakeholders for over a decade to form the district and the planning process that led up to the construction of the plant.The district's employees and Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 2 of 8 consultants demonstrated exemplary teamwork and organization in the construction of the facility.Everyone involved in the design, the field engineers to the contractors and administrative support helped to make this a successful project. Managing a project of this scale takes considerable skill.The district was well organized from early on in the project, attended to detail and was always available to discuss the project.She specifically recognized Frank Blanco.He did a fantastic job of keeping staff well informed of project progress and facilitated compliance with all of their loan requirements. He had help from his team.Andria Samuels administrative pay requests, American Iron certifications, prevailing wage interviews tasks to keep the project moving forward. closely involved with the master planning, and plant construction as well as insuring worked on and Steel and various other Mike Loggins was engineering, design a successful plant start up.The district was able to reduce their reliance on groundwater supplies with this project by utilizing their allotment of Central Arizona Project water.When the district started providing water service to its customers over 90% of the supply had to come from groundwater.Today over 90% of the water comes from surface water.That is fantastic.It was a great job done by all of those involved.She presented the plaque to the district to acknowledge the achievement and hard work.She looks forward to working with the district on future drinking water projects.She stated the plaque says "The Apache Junction Water Utilities Community Facilities District for the Superstition Area Water Plant, In Recognition of Your Commitment To Protecting Public Health Through the Investment In the State of the Art Water Treatment Facility". DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated the district's goals and objectives are focused on five items:water quality, water supply, infrastructure, human resources and customer relations. Water quality enhancements include chlorination and recirculation systems at Booster #1 for the storage reservoirs. They are continuing with real time monitoring of water quality of the reservoirs.They have another goal to minimize water Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 3 of 8 age.They are a system that has more storage than can be used in one day.One of their challenges will be making sure the water stays fresh and that they are able to move it around and use it as quickly as we produce it.They are looking at a couple of new intergovernmental agreements for water supply risk mitigation.They will be renewing some old partnerships and adding some new ones.They will be looking at water wheeling agreements to mitigate the risk of a shortage on the Central Arizona Project Canal System as an example.They have submitted a drought planning and monitoring plan, a water system plan, to the Department of Water Resources.The plan has been accepted and he will go into detail on that at some point.They are also looking at local recharge options.Currently the groundwater is recharged in areas where we are not able to recover what we are recharging.They are looking at localized, regional recharge facilities that include other partners.They are in the process of implementing a computerized maintenance management system. It is something they will be able to use for the new water facility as well.They are in the process of getting a rates analysis which will allow them to keep track of their current infrastructure that needs to be replaced.It can do some financial analysis and looks at what the rates really should be based on the available resources and revenue.They will be reviewing the water system master plan which was originally based on population growth.They need to review it from time to time to see where they are at and if they are meeting any milestones.For human resources they will be including training for personal development.It would also include retention and succession planning.The final goal is customer relations and they want to improve customer service, focus on their mission of providing the finest water, community outreach for education and public involvement and to improve their image and public perception.They want to communicate their vision to be recognized as an invaluable resource providing a core service for the community while promoting growth and providing the city sustainability and control over its future.The new payment portal will be coming online April 1, 2017. District Superintendent Mike Loggins stated every year from January 1 to March 31 they have to provide a report to the Arizona Department of Water Resources.They are gathering information on how much water they produced last year from wells versus the water treatment plant versus what was received from Mesa.They will be providing the report to them in the next Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 4 of 8 month or two.It looks like the demands are the same as last year so it should be very similar to what was seen last year. He will give them another update next month.He talked to them about water production last meeting.In December 2015 they produced 21% of the water at Well No. 5, 3% of the water at Well No. 6 and 76% of the water was from the Mesa interconnect.They were still taking about one million gallons a day from the City of Mesa with an average daily demand of 1.3 million gallons per day.In December 2016, now that the plant is on line, they are at 13% on Well No. 5, 7% on Well No. 6, 1% from the City of Mesa and 70% from the water treatment plant.The district now has 99% of the water coming from the district and not some other community.It was a great project and provides different options for the future. Chairperson Serdy asked if we are stronger and building up reserves by not using Well No. 5 so much. District Superintendent Mike Loggins stated it does help us because they are not having to draw water down.They are not removing water from the aquafir at this time.It saves it for the future when it is truly needed.They can produce 100% of the water from the treatment plant.The only reason they are running the wells is in case they have a problem with the plant. They can shut if off since Wells No. 5 and No. 6 are still running and operable.They run the Mesa interconnect once a month just in case they have the ultimate storm where the plant and all the wells go down and they would have to receive water from the City of Mesa.They verify each month that everything is still good to run. Chairperson Serdy commented we can take water from Mesa.He asked what would happen if they had a terrible disaster and needed water.He asked if the district would be able to reverse it that way. District Superintendent Mike Loggins stated currently they cannot but it would not take much for them to do that.If they called and needed the district to do that they could turn around a check valve and send water back their way. Mr. Struble asked if they could draw everything from our wells if the plant has to go clown for some reason. Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 5 of 8 District Superintendent Mike Loggins stated that is correct. They will talk about that more in the future.They have been having meetings with Central Arizona Project.In 2019 the Central Arizona Project canal will shut down for six weeks. They cannot receive water at that point in time.They will have to rely on the wells at that point and some of the other agreements they are working on with some other cities to receive water from them if the district needs to.Currently they can get the water from Wells No. 5 and No. 6 to provide for all of our customers without taking water from somebody else.They have recently been putting on more tours at the plant.The AZ Water Association came out.They are operators from all over the state and some from Show Low and Phoenix came out.They gave them the tour and showed them how the water process worked. There was about 30 people there.Last week they had Crowell Engineers bring their staff out for a tour and go over some of the things learned as the plant was built and what can be done better with future designs.Tomorrow he has a seminar with AZ Water Association to do a presentation on the start up for the treatment plant for all the plant operators that are involved with that association. Mr. Struble asked if that is something they are planning on doing with the school kids. District Superintendent Mike Loggins stated they are working on that in the near future.They have the water festival coming which involves fourth grade students.They give explanations on their water works and the cycle of water.That same week is Water Week and they will have the plant open for the public to come in and visit for one day.Eventually he believes it would be good to bring some of the students out there to show them the plant.They could get more people interested in it.They are aware of aging infrastructure, but as their operators get older a lot of them have maintained over thirty to forty years and no one is really stepping up to learn the water treatment process. They will be in need of treatment plant operators and distribution people to take over after these guys.They need to get some interest in that going.They are also trying to get more interns in and train more people to be available.The water festival is April 27 and he hopes all of them volunteer. A lot of them have in the past and it is a great thing they do around the city, bringing all the city's fourth graders in plus Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 6 of 8 one school from Mesa.They really enjoy it and appreciate all the volunteers they get. DISTRICT TREASURER REPORT District Controller Kent Brooksbury advised the treasurer was sick and did not forward a report. District Manager Bryant Powell introduced Kent Brooksbury who has been with them for a few months. Assistant City Manager Matt Busby stated Kent is actually the new controller.He was an accountant but was promoted to controller. Chairperson Serdy commented he thinks it is great because he has been asking for years if they could cross train people just for that situation for when someone does go out we have more than one person that can step in and do that.It is a very good idea. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:20 p.m. ACCEPTED THIS an r d DAY OF , 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS DAY OF 2017. ff Seyyy Chairperson ATTEST: Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 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 21st day of February, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of March, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 21, 2017 Page 8 of 8 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING April 18, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on April 18, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Barker Mrs. Evans Mr. Struble Mr. Waldron Staff Present: Others Present: (Mrs. Rizzi was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Al Bravo, Public Information Officer Andria Samuels, Senior Administrative Assistant APPROVAL OF MINUTES OF MEETING OF FEBRUARY 21, 2017 Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 1 of 11 )Chairperson Serdy called for a motion. Mrs. Barker MOVED THAT THE MINUTES OF FEBRUARY 21, 2017, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. SELECTION OF DATES, TIMES AND LOCATIONS FOR BUDGET WORK SESSIONS, TENTATIVE BUDGET ADOPTION AND FINAL BUDGET ADOPTION FOR FISCAL YEAR 2017-2018 ) )District Director Frank Blanco briefed the board on the item. Vice Chairperson Wilson MOVED THAT THE FOLLOWING DATES, TIMES AND LOCATIONS FOR FISCAL YEAR 2017-2018 BUDGET WORK SESSION(S), TENTATIVE BUDGET ADOPTION AND FINAL BUDGET ADOPTION BE APPROVED:BUDGET WORK SESSION ON MAY 2, 2017 AT 6:00 P.M.; TENTATIVE BUDGET ADOPTION ON TUESDAY, MAY 16 AT 6:00 P.M. AND FINAL BUDGET ADOPTION ON TUESDAY, JUNE 20 AT 6:00 P.M., ALL OF THEM DONE IN THE CITY COUNCIL CHAMBERS. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 2 of 11 District Director Frank Blanco briefed the board on the 2016 Annual Report for Arizona Department of Water Resources and the 2016 Annual Water Quality Report. Vice Chairperson Wilson asked if the groundwater usage will go down now that they are using mostly Central Arizona Project water. District Director Frank Blanco stated that is correct.He continued with his briefing. Chairperson Serdy asked if the wells are at the same level as when the wells were being used heavily.He asked if they went down and have now come back up.He asked if they fill in like a seep of a spring. District Director Frank Blanco stated they have not seen a significant increase as of yet.Part of the reason is they are taking water from the same aquafir that Arizona Water Company is.Even though they have reduced the pumping overall in the Apache Junction area there has not been a significant reduction in groundwater pumping. Mr. Struble asked how often they would be shutting the plant down for maintenance. District Director Frank Blanco stated the plan is to shut it down at least once a year unless they need to do it more often than that.There is a planned shut down for Arizona Project in 2019 so they will do extensive maintenance as well. Mr. Struble asked how long it would be shut down. District Director Frank Blanco stated it has been down since Monday and the plan is to bring it back up tomorrow. Mr. Struble commented it would be down two or three days. District Director Frank Blanco stated that is correct.He continued with his briefing. Senior Administrative Assistant Andria Samuels briefed the board on the annual water quality report. Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 3 of 11 Mr. Struble asked if they had to do the second quarter testing 30 days after January 12 or 30 days after March 15. Senior Administrative Assistant Andria Samuels stated it was 90 days after January 12. Mr. Struble commented that takes care of the one we missed originally. Senior Administrative Assistant Andria Samuels stated that is correct. Mr. Struble commented they would have had to have done one on March 15 and again in April. Senior Administrative Assistant Andria Samuels stated that is what they did.They did it in March and for second quarter they did it in April.She continued with her briefing.She then briefed the board on the upcoming water festival. Mr. Struble asked what kind of things the board would have to do if they volunteered. Senior Administrative Assistant Andria Samuels stated it would depend on his experience and comfort level.He would work with another person to teach one of four subject areas: conservation, water cycle, watershed or groundwater.They are half hour sessions and they are all scripted out.They spend five minutes at each one.The kids are fourth graders. Mr. Struble asked if they get to spray them with water. Senior Administrative Assistant Andria Samuels stated if the fire truck is not able to attend she is thinking that is the direction they will go.Because of the other events the fire trucks are trying to make it out there.They are not sure if they will be able to attend.She is coming up with a contingency plan. Chairperson Serdy asked if there is always about the same amount of kids. Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 4 of 11 Senior Administrative Assistant Andria Samuels stated that is not the case.They have been expanding.This is the sixth annual festival.When they started they had three schools and about nine classes.It varies.This year they will have four schools with fourteen classes.They will be splitting from three color areas to four color areas in order to keep the groups manageable.Next year Avalon Academy intends to attend, taking them to five schools and sixteen classes.The plan is to keep on growing. Vice Chairperson Wilson commented it is a lot of fun. Utility Billing Supervisor Evie McKinney gave an update on the billing process. Mr. Struble asked what the percentage is of people who are late versus those that quit. Utility Billing Supervisor Evie McKinney stated out of their five zones they typically have about 10 to 12 people every week. In zones 4 and 5, because there are more, that could be as many as 20 to 25. Mr. Struble asked approximately how many customers are in each zone. Utility Billing Supervisor Evie McKinney stated on average there is about 850 to 900. Mr. Struble commented it is not a bigjpercentage. Utility Billing Supervisor Evie McKinney .stated it is really not.They have )a lot more penalties that go out, but on .the grand scheme of things it is about 2% of our entire revenue It is not bad.. Mrs. Evans commented she understands how they came up with $120 for a deposit.She recently became-a.customer again as she just moved again She found .that when,changing all her utilities over that the district has the highest deposit.She just went through this. in Prescott, too.Even up there, if she produces, a letter from Salt River Project that she was in good credit-, they just turned her gas on, her water on and Arizona Public Service - Water Utilities Community Facilities District Meeting Minutes:of.April 18, 2017 Page 5 of 11 , did the same thing.It has been several years since any of her transactions were done that she had to produce her closing statement.Years ago we had to do that almost on any property but everybody has kind of stopped doing it.But we are still doing it.The one conversation she had with Frank was to the effect that the district has a lot of people that try to get felonious accounts turned on at a house.She knows that it happens and this person quit paying but they are going to put it on in someone else's name.But she thinks it is wrong to assume that of everyone that is signing up.It makes her feel like asking if this is a down and out type of company.Compared to everybody else she has had to deal with, it was the hardest and highest fee. Utility Billing Supervisor Evie McKinney stated she was glad she brought that up.It is a great point.One of the reasons they charge a deposit that is higher than other utilities is if they contact Salt River Project and you have been a customer of theirs but have moved away for two years but then go back and are still in good standing, you can avoid those establishment fees by offering them your social security number.She knows that other utilities request that as well.If you give them that, you do not have to give the deposit but the purpose of that is that they are contracted with collection agencies so if you up and skip, they do not care if they do not have a deposit from you.They will contact their credit agency or collection agency to come after you for that money.We do not have that resource right now.She does not know if they have enough customers to warrant that.It is quite expensive.She and John have entertained that a little bit.They feel the $120 deposit is fair.It does seem like a lot especially when people are comparing them to other utility companies.That is what they explain.They do not ask for the social security number.That puts a lot of people at peace. District Manager Bryant Powell stated it is absolutely a public policy decision on this.The district's perspective is that. They have heard it from a staff perspective but they work with the board on it.If that is what the board feels like then they need to talk about it some more.That is what water boards and city councils decide.Just because staff says it is fair it may not be.They need to know what they think.He is not saying they recommend changing it.He is actually saying no, they want Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 6 of 11 to keep it the same.If there is some other methodology or system, they are open to that as well.It is a public policy decision from the board standpoint.He does not know if they want them to do some more research or find out what all the other systems are doing.He would also like to include the column about securities and other avenues that are being asked about. Mr. Waldron commented there are a lot of people reluctant to give out their social security number these days. Utility Billing Supervisor Evie McKinney stated very much so. Mr. Waldron commented he would not do it. Mrs. Evans commented she thinks all they want is the last four digits.They really do not ask for the whole thing.But her point is on one hand she was made to feel like she was down and out and she had to prove that she was buying this house.On the other hand she is being asked to pay the highest fee.It was like a mixed message.It was really uncomfortable. Utility Billing Supervisor Evie McKinney stated it is best to come from our board members than our customers.They have something they can look at. Mrs. Barker commented as she listened to Evie's presentation, basically what they are doing is recouping the funds that they would not get were people to skip out.They are giving the $120 back to those who are there for x amount of months.Her question was if a person gets their $120 back if they have been a consistent customer for 12 months.As long as people continue to receive that deposit as they have consistently paid their bill she does not see a problem with it.She suggested the presentation at the counter could be a little more user friendly. Utility Billing Supervisor Evie McKinney stated she neglected to add that part.When they are talking about that deposit they do say after 15 months of on time payment or if they move out before the 15 months, whatever their final bill is deducted from that.They are refunded the difference.They are getting it back if they are less than 15 months. Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 7 of 11 Mrs. Evans commented she was just wondering because of low income families and that.She asked if there is payment basis on that.They have just moved and to come up with deposits just to get water and they have to have water. Utility Billing Supervisor Evie McKinney stated there is not any kind of discounted program.There are some organizations within the city they can recommend that they contact.Those organizations have helped a lot of their customers out over time. Mr. Waldron asked if they have ever not given someone water service if they could not afford the $120. Utility Billing Supervisor Evie McKinney stated she did not believe so.Every case is different and they have to look at things with a heart, not just policy.They want to be a company they are proud to be a part of. Mr. Struble asked if someone asks for assistance from the city according to what she just said does the city ask for proof of income or how that would work. Utility Billing Supervisor Evie McKinney stated they give them the resource numbers they have and ask them to contact those organizations. Mr. Struble commented those organizations would pay the deposit. Utility Billing Supervisor Evie McKinney stated that is correct. District Superintendent Mike Loggins briefed the board on how they do shut off day and how things are assessed there. Mr. Waldron asked what happens if a person disagrees with the amount, that they do not think they have used that much.He asked what the process is for that. District Superintendent Mike Loggins stated they do have that occasionally.They think the meter is off.They can ask to have the meter checked to make sure it is reading correctly. Typically a meter does not speed up, it will slow down.Over time they get 500,000 gallons or a million gallons and they both Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 8 of 11 go down.If they do test it, they will charge them for testing it if it comes back that it is accurate.If not, they change out the meter and estimate their account from what they would normally use. Mr. Waldron commented he thought there was a situation where a meter zeroed out at Raindance Mobile Home Park. District Superintendent Mike Loggins stated some meters only have up to six digits on it.After it goes through 999,999 it rolls over and starts again back at zero.They have had that instance happen at a trailer park. Mr. Waldron commented that then creates a billing error. District Superintendent Mike Loggins stated that is correct because it is looking for that 10 and it sees that did not happen.They have to go in and manually correct some of those things. Mr. Waldron commented his got vandalized so they replaced it. District Superintendent Mike Loggins continued with his briefing. Mr. Struble commented they would be shutting the water off for someone in April and the same couple comes back in October. They move into the same residence.He asked what would happen if it was under the husband's name in April and the wife opens it up under her name in October.It is not the same name but it is the same residence.He asked if they would still be charged the back fees. District Superintendent Mike Loggins stated if she was originally on the account they would. Mr. Struble commented he understands there are overhead costs but why is there a charge if the meters are not being used and there is no water flowing to the residence.If he moved out in April and Gail moved in in October they would not collect any back fees. Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 9 of 11 District Superintendent Mike Loggins stated that is correct. They would not be able to do anything about that.Unfortunately they have that situation happen all the time but usually they would be selling the house and someone else would come in right after.They do have some that are vacant for five months to two years.They have about a quarter of their customers leave and unfortunately some of the things there cannot be shut off in the summer.The system has to be maintained and things replaced so they are prepared for all that stuff.Those are some of the fees they are trying to recoup that they have not been able to do in the past. Mr. Struble commented he understands the reason for it.He just wonders how many circumvent the process by those ways. District Superintendent Mike Loggins stated so far they have not had too many.A lot of customers pay six months up front because they knew they would be gone that long.Some request they be billed monthly. Mr. Struble commented it is not an exorbitant amount of money. He comes from up north so he understands how those people think. Utility Billing Supervisor Evie McKinney briefed the board on the payment portal. DISTRICT TREASURER REPORT District Treasurer Donna Meinerts briefed the board on the financials for the water district through March 2017. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:48 p.m. ACCEPTED THIS /49 -71/DAY OF , 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS d o - -Ili DAY OF /14 A 1 2017. Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 10 of 11 ff Sefey Chairperson ATTEST: Kathleen Connelly District Clerk WATER UTILITIES COMMUNITY FACILITIES DISTRICT MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular meeting of the Water Utilities Community Facilities District of the City of Apache Junction, Arizona, held on the 18th day of April, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 2nd day of May, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of April 18, 2017 Page 11 of 11 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 2, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 2, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Evans Mrs. Rizzi Mr. Struble Mr. Waldron Staff Present: Others Present: (Mrs. Barker was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Andria Samuels, Senior Administrative Assistant Eric Yuva, Assistant City Attorney Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 1 of 12 DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2017-2018 AND CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES Blanco briefed the board on the item. District Director Frank District Treasurer Donna Meinerts briefly summarized the budget. Mr. Struble asked what was reduced $80,000. District Treasurer Donna Meinerts stated the $80,000 was for the Siemens study that the water district will not be participating in.It is an energy study. Assistant City Manager Matt Busby stated it is an energy audit.It was a typo that was incorrectly put into the budget. District Treasurer Donna Meinerts stated that is the only change from the initial worksheet. District Director Frank Blanco briefed the board on the three capital projects in the budget:purchase and install a generator for booster station number two; purchase and install a strainer at the water plant and replace the coating and install a cathartic protection system. Chairperson Serdy commented he used to work in the gas and oil industry.They used to put anodes on the pipelines.He asked if that is the same principle where it is grounded outside and somehow keeps corrosion down. District Director Frank Blanco stated that is correct.It is a sacrificial metal.The anodes corrode instead of the metal on the tank.He continued with his briefing. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 2 of 12 Chairperson Serdy asked what a consultant can do that our staff cannot do and how in depth it will be. District Director Frank Blanco stated the consultant can help them do some studies on percolation rate, whether or not the ground is appropriate to recharge in that particular area and help determine what cost might be involved in permitting and siting the facility so the footprint is properly sized so they can recharge a significant amount of water in that area.A consultant is really required for this for their expertise. Chairperson Serdy commented in the everyday operation of the city they sometimes try to get grants for things like this.They do not get a lot of grants for the water district.He asked if there is some way they could look into more grants in the future. District Manager Bryant Powell stated they certainly can.They have been aggressive with the Water Infrastructure Finance Authority loan.They got a one million dollar forgivable principle.They are often looking for any grant. District Director Frank Blanco stated if they would look at the first page of the handout they will find a Water Infrastructure Finance Authority technical assistance grant listed there.The plan is to go for a $35,000 grant to pay for half of that study.Since they do not currently have it they have to list the entire amount. Vice Chairperson Wilson asked if they are going team up with the sewer district to hire the consultant.He asked if they would be willing to come in jointly on this. District Director Frank Blanco stated that is the plan.He believes the sewer district may already have somebody working on that.When they go to actually build the facility the plan is to partner with the sewer district and hopefully save some money in the actual construction of the facility.He continued with his briefing. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 3 of 12 District Superintendent Mike Loggins briefed the board on the rate changes. Mr. Struble asked where the rate sheet increases were located in the packet. District Superintendent Mike Loggins stated it is not in there tonight.It was in the previous packet they received. District Manager Bryant Powell asked where it was at. District Superintendent Mike Loggins apologized and stated it is not in the packet yet.They will be discussing it and later they will have it. District Manager Bryant Powell stated tonight is not an action night.They are just proposing these rate changes.It is a recommendation from staff on their thoughts that they have at this point. District Superintendent Mike Loggins continued with his briefing. Mrs. Rizzi asked if the base rate is what they get charged regardless of how much water they use. District Superintendent Mike Loggins stated that is correct. Mr. Struble asked it is going from now to what. District Superintendent Mike Loggins stated he was coming to that.He showed them a chart on how they compare to other cities in the valley.They are slightly below the average base rate.They are at $22.37 now. He briefed them on what other cities are doing. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 4 of 12 Mrs. Rizzi asked if there are rules as to what the base rate can be spent on, if it can only be spent on certain things. District Superintendent Mike Loggins stated he does not believe so.It is all part of their revenue. Chairperson Serdy commented for the record, since the water board meetings are when the public is usually not here and they are all very polite, he does not think they have to ask for permission to talk here unless they have a heated discussion where they would need a little more order.They can feel free to blurt questions out when they need to. District Superintendent Mike Loggins stated they have a new rate they are proposing.It is for customers that live in the county and county islands.They are raising their base rate from 5% to 8.2%.The 5% increase is what they are giving to their existing customers.The county residents do not currently pay the city tax of 3.2%.That is where they came up with the 8.2%.There is also a 3.2% increase to the consumption rate. Mrs. Rizzi commented that is one more reason to encourage them to come in. District Manager Bryant Powell stated if there is no incentive, they are finding out, they are working on a brochure that they can have like every other city and what it means to annex into the city.If there is no difference and there is no purpose there is no reason why they would ever do so.This is an option to look at.It also has something to do with having the ability to have our own city taxes which are not available to us because they are in an unincorporated area.He asked if he was correct on that. District Clerk Kathleen Connelly stated that is correct. District Manager Bryant Powell stated this really levels the playing field to a degree. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 5 of 12 He does not know if they want to keep doing this as a public policy.This is a way to start differentiating that. Mrs. Rizzi commented they need to do that. District Superintendent Mike Loggins continued with his briefing on the rates.The base rate within the city limits went from $21.34 to $22.41.The consumptions rates do not change.For the average water consumer their bill would be raised $1.18 per month.The average county water consumer would see their bill raised by $3.05 per month.It is an overall increase to city residents of 1.9% and county residents of 4.9%.The neighboring water company is looking at a 21% increase right now. Mr. Struble commented they need to change the base rate difference on the county island one.It is not a $1.07 difference; $21.34 to $23.09 is $1.75. District Superintendent Mike Loggins stated he is correct.He apologized for the error. Mr. Struble asked if that changed the percentage but it should not because the totals were right. District Superintendent Mike Loggins stated it is just that difference on the one slide. District Manager Bryant Powell stated they will make that change for the next meeting. District Superintendent Mike Loggins continued with his briefing on the rates, fees, classification and compensation plans.He stated tentative budget adoption would be May 16, 2017 and final budget adoption would be June 20, 2017. Mr. Struble asked if the increase in projected revenue for the next fiscal year is based on the 5% increase in fees. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 6 of 12 District Superintendent Mike Loggins stated that is correct. Mr. Struble asked how many new customers they are expecting. District Superintendent Mike Loggins stated they currently have one subdivision going in next year.That would be 20-25 new customers.They typically gain about 5 random customers a year.They may gain 25-30 customers next year. Mr. Struble commented the revenue budget shows $25,000 for the establishment charge. District Superintendent Mike Loggins stated the establishment charge is when they come in and sign up for service.They pay $25 plus tax.What he is looking at is the capital facilities fee and the water resource acquisition fees.They are down below on the sheet.Those would be the amounts collected from the new residents. Chairperson Serdy asked if he knew which urban lake they were looking at. District Superintendent Mike Loggins stated he did not. District Director Frank Blanco stated it is in Phoenix and the water they are using is drinking water.They were originally going to fill it with effluent from nearby wastewater pipe.What they have been doing is swapping out renewable water from a different supply.The City of Phoenix has lots of credit.On paper they are filling it with recovered Central Arizona Project water or recovered water from elsewhere. Chairperson Serdy commented he had talks with staff at the water festival.It has been a lot of peoples' dream to have an urban lake out here someday. The way the city lays and its elevation it has not ever been right.If anything changes down south where it is downhill from us he would hope they could jump on that and possibly do Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 7 of 12 something if things fall into place.He knows it is a long shot but it would be nice to keep that in the back of their minds. They get used more than other parks. Mrs. Rizzi commented she has heard people talk a lot about Red Mountain where they can go with their families.They go fishing a lot.People are asking why we cannot do this in Apache Junction. Chairperson Serdy commented the Gilbert Riparian Park is the same way.They get a lot of people. District Superintendent Mike Loggins stated they will look into that for them and see what they can come up with. District Manager Bryant Powell stated that is a discussion they can keep on having with Darrin and the wastewater being piped in.He remembers when they used to call that area Portal's they looked at some of those dams that were being reconfigured in Maricopa County for the Flood Control District.That is not too far from the sewer district. Chairperson Serdy commented they could get all the ducks that currently reside at the sewer pond to come over to ours. District Manager Bryant Powell asked if they have a plan for marketing to help the community understand the difference when the announcement comes out on an increase of 21% on water rates.We will get questions.He has asked if they have the timing on that. District Superintendent Mike Loggins stated they can discuss it more in the future.The rates will probably not be changed until January 2018.We have time to come up with some kind of solution so that people understand it is not the water district. Mr. Struble asked if he was talking :about the fees they pay. Water UtilitiesCommunity .Facilities District Meeting Minutes of May 2, 2017 Page .8 of 12 District Superintendent Mike Loggins stated that is correct. District Manager Bryant Powell stated everyone will question them about changing their rates. Vice Chairperson Wilson commented they do not have anything to do with Arizona Water. Mr. Struble commented on the expense for the consultant they were going to use.He asked if that is the $47,000 they are paying in administration or if that is someplace else in the budget. District Superintendent Mike Loggins stated that should be under the operations budget. Mr. Struble commented that is correct. District Superintendent Mike Loggins stated it is for architectural engineering. Mr. Struble commented that is correct.He asked-what the $47,000 for administration is. District Superintendent Mike Loggins stated that dollar amount is for the district accountant they lost this year.He retired in December.The accounting group is getting caught up at this point in time.They need to hire an outside consultant to help them get back up to speed and keep accounting happy with all of their different rates and changes they did.It will keep them up to speed with where they are at.They currently do not know if they will need one but they put it in the budget in case they have to have one. Mr. Struble asked if that is over and above what staff can do.He is trying to understand. District Superintendent Mike Loggins stated that is correct.Staff has changed.It is intertwined with the city and they pay for some of the city Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 9 of 12 accountants.They lost their accountant up there, they are changing staff and this is just to get caught up. Mr. Struble commented it is not a for certain expense.It is just a possibility. District Superintendent Mike Loggins stated that is correct. District Manager Bryant Powell stated they will only use it if they absolutely have to. District Director Frank Blanco stated that position would be working directly on two projects.One of them is a computerized maintenance management system and the other is a waterworks application.The waterworks application is for determining rates.In both instances they have to identify all of the assets.Every piece of pipe, every piece of equipment, everything that they own and they have to put a dollar value to it.They then depreciate it and figure out how much it will cost them to fix their equipment.It is also related to finance. Mr. Struble commented the electricity from last year's budget to this year's budget is significantly less.He asked if that is because they have some history on the new plant. District Superintendent Mike Loggins stated that is correct.When they initially brought the plant on line, the engineer who designed the plant came up with a cost estimate for electricity, chemicals and different things. They were really conservative on their numbers.When they saw what the numbers were for the third quarter of last year for running the plant, they adjusted them for next year's budget. That is why it came down quite a bit. DISTRICT MANAGER REPORT District Manager Bryant Powell thanked Frank and his team for a great job.They will get all the information the board needs. Chairperson Serdy asked what the next move would be after this. Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 10 of 12 District Manager Bryant Powell stated May 16 will be the budget public hearing. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:33 p.m. ACCEPTED THIS 044-4-DAY OF j a ti e , 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 2017. ATTEST: ,2001- Kathleen Connelly District Clerk DAY OF I V I j ;eff S'rdy Chairperson Nch,Are 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 2nd day of May, 2017.I further Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 11 of 12 certify that the meeting was duly called and held and that a quorum was present. Dated this 16th day of May, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 2, 2017 Page 12 of 12 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 16, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 16, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson WilsOn Mrs. Evans Mr. Struble Mr. Waldron Staff Present: Others Present: (Mrs. Barker and Mrs. Rizzi were absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinetts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Andria Samuels, Senior Administrative Assistant Eric Yuva, Assistant City Attorney Al Bravo, Public Information Officer APPROVAL OF MINUTES OF APRIL 18, Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 1 of 7 2017 )Chairperson Serdy called for a motion. Mr. Waldron MOVED THAT THE MINUTES OF APRIL 18, 2017 BE APPROVED. Vice Chairperson Wilson SECONDED THE MOTION. PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2017-2018 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FY 2017-2018 AND CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES )District Manager Frank Blanco briefed the board on the item. District Superintendent Mike Loggins briefed the board on the proposed rates and changes. Mr. Waldron asked if the 3/4" service is something new.He sees that it did not exist last year. District Superintendent Mike Loggins stated that is incorrect.It did exist last year and they are not proposing to raise it at this time.They are proposing to raise the 5/8" and 1" only. Mr. Waldron commented it was blank in the one column so he did not know if it was not available before. District Superintendent Mike Loggins stated that is because they are not proposing a new rate for that base rate.Typically cities offer either a 5/8" or 3/4" meter, not both, so at some point they will eventually combine those but they are not proposing that tonight. RESOLUTION NO. 2017-001, DECLARING AS A PUBLIC RECORD AND ADOPTING Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 2 of 7 CERTAIN DOCUMENTS FILED WITH THE DISTRICT CLERK ENTITLED "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CLASSIFICATION PLAN FOR FISCAL YEAR 2017-2018", "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT COMPENSATION PLAN FOR FISCAL YEAR 2017-2018" AND "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FLAT AND HOURLY SCHEDULE FOR FISCAL YEAR 2017-2018" )District Director Frank Blanco briefed the board on the item. Vice Chairperson Wilson MOVED THAT RESOLUTION NO. 2017-001, 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 "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT CLASSIFICATION PLAN FOR FISCAL YEAR 2017-2018"; "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT COMPENSATION PLAN FOR FISCAL YEAR 2017-2018" AND "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FLAT AND HOURLY SCHEDULE FOR FISCAL YEAR 2017-2018" BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2017-2018 )Assistant City Manager Matt Busby stated this is just for the public hearing. Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 3 of 7 Chairperson Serdy opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and reopened the item to board discussion.There being no further discussion, he closed the item and moved on to the next item. RESOLUTION NO. 2017-002, ADOPTING A PROPOSED BUDGET FOR FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018; ADOPTING PROPOSED RATES, FEES AND DEPOSITS, WATER RESOURCE ACQUISITION FEES AND CHARGES APPLICABLE FOR FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018; 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 )Vice Chairperson Wilson MOVED THAT RESOLUTION NO. 2017-002, 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, 2017 AND ENDING ON JUNE 30, 2018; ADOPTING PROPOSED RATES, FEES, DEPOSITS, WATER RESOURCE ACQUISITION FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING ON JUNE 30, 2018; ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET; AND DIRECTING DISTRICT STAFF TO SOLICIT COMMENTS FROM THE CITY OF APACHE JUNCTION ON THE PROPOSED ANNUAL BUDGET BE APPROVED; AND WITH A HEARING ON JUNE 20, 2017. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 4 of 7 District Manager Bryant Powell stated he is proud of the water district and he wanted to share that the Superstition Area Water Plant was selected as the Arizona Water Association's 2017 Water Treatment Plant.It is substantial and they will be promoting to everyone that the water district is doing some awesome stuff that is preparing the city for the future. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated the rates go into effect in October.He then briefed the board on the Arizona Water Association 2017 Treatment Plant of the Year Award for a Small System. Chairperson Serdy asked if they would have to build a new trophy case to keep all the trophies in. District Director Frank Blanco stated they are sitting on a table now until they figure out what to do with them. Mr. Waldron commented they just spent $9 million on a trophy case. District Director Frank Blanco briefed the board on the plant winning the Project of the Year award. District Superintendent Mike Loggins announced Frank had earned the Silver Water Drop for 25 years of service.He gave an update on the water system. Mr. Waldron asked if they found anything unexpected when they changed the water over. District Superintendent Mike Loggins stated they found that the underground system initially had an aluminum plate on it where they could not see it when it was operational.They put a clear pleXiglass piece there so they can see what is going on in the under drain.They can understand what is happening and know when they need to clean it.That was the only unexpected thing they found. Senior Administrative Assistant Andria Samuels briefed the board on the water festival. Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 5 of 7 Vice Chairperson Wilson commented there should have been some pictures of the kids getting soaked down. Senior Administrative Assistant Andria Samuels stated she did not think Liz Langenbach would like her to show the after effects of that this year. DISTRICT TREASURER REPORT None. District Director Frank Blanco announced this is the last meeting for Andria as she has accepted a position with the City of Scottsdale. Senior Administrative Assistant Andria Samuels stated their continued participation in the water festival will be appreciated even if she is not there. Mrs. Evans thanked her for her service. District Manager Bryant Powell asked what department she would be working in. Senior Administrative Assistant Andria Samuels stated she will be in their Capital Projects Division of Public Works. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:28 p.m. ACCEPTED THIS 0/0-771 DAY OF t.04,416-, 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS o W 7 W DAY OF 2017. 40# /J-ff Se/.y Chairperson Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 6 of 7 ATTEST: Kathleen Connelly District Clerk d a 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 16th day of May, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 5th day of June, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 16, 2017 Page 7 of 7 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING June 20, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on June 20, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Barker Mrs. Rizzi Mr. Struble Mr. Waldron Staff Present: Others Present: (Mrs. Evans was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Eric Yuva, Assistant City Attorney Al Bravo, Public Information Officer APPROVAL OF MINUTES OF MAY 2, 2017 AND MAY 16, 2017 Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 1 of 7 )Chairperson Serdy called for a motion. Mr. Waldron MOVED THAT THE MINUTES OF MAY 2, 2017 AND MAY 16, 2017 BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2017-2018 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FY 2017-2018 Blanco briefed the board on the item. District Manager Frank Mr. Waldron asked what the increase in Central Arizona Project costs is due to.There has been a rapid increase from 2013 to 2017. District Manager Frank Blanco stated a lot of it has to do with the energy costs, the cost to pump the energy now that they are looking at the Navajo generating station going off line.It was a source for Central Arizona Project electricity.They have projected that will have an impact on their electrical costs.The cost of electricity is pretty significant; the cost of equipment replacement and maintenance is also a big cost.The capital charge has to do with paying back for the actual canal.It was thought that would not increase at that dramatic a rate.He continued with his briefing. District Superintendent Mike Loggins briefed the board on the proposed rates and changes. District Director Frank Blanco briefed the board on the proposed classification and compensation plan. Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 2 of 7 Mrs. Barker commented no questions means they have done an excellent job of presenting this the times we have seen it and walking us through it. PUBLIC HEARING ON PROPOSED FINAL BUDGET AND RATE SCHEDULES FOR 2017-2018 )Chairperson Serdy opened the public hearing on the item.There being no one wishing to speak, he closed the public hearing and opened the item to board discussion.There being no further discussion, he closed the item and moved on to the next item. RESOLUTION NO. 2017-003, ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER DISTRICT FOR FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018 AND DECLARING SUCH ACTION TO ESTABLISH THE BUDGET FOR FISCAL YEAR 2017-2018 for a motion. Chairperson Serdy called Mrs. Barker MOVED THAT RESOLUTION NO. 2017-003, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) ADOPTING ESTIMATES OF EXPENDITURES BY THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION) FOR FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018; DECLARING THAT SUCH ACTION SHALL ESTABLISH THE BUDGET FOR THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) FOR FISCAL YEAR 2017-2018, BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2017-004, RE -ADOPTING ALL EXISTING RATES, Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 3 of 7 USER FEES AND CHARGES FOR FISCAL YEAR 2017-2018, INCLUDING NEW RATES FOR MONTHLY BASE SERVICE CHARGES AND WATER CONSUMPTION RATES PER 1,000 GALLONS INSIDE AND OUTSIDE CITY LIMITS, RESIDENTIAL SERVICE AND METER INSTALLATION FEES, SYSTEM CONNECTION FEES STANDPIPES AND FIRE HYDRANT METERS; AND ESTABLISHING AN EFFECTIVE DATE Blanco briefed the board on the item. any discussion. District Director Frank Chairperson Serdy called for Vice Chairperson Wilson asked if he could ask a question about something that has nothing to do with this.He asked who pays for the water that is being delivered if there is a fire for a fire situation. District Director Frank Blanco stated the water district pays for the water and they make sure that the water is available when it is needed.The district is enabled to be able to supply that water to put out the fire by all of those that are connected to the system that are customers paying the monthly base rate.The customers connected to the system will pay for that water. Vice Chairperson Wilson asked if that is part of the base rate being charged. District Director Frank Blanco stated that is correct. Vice Chairperson Wilson commented they are providing for everyone in the area. District Director Frank Blanco stated that is correct.That is the monthly base rate. Vice Chairperson Wilson commented someone asked him about if someone decides they do not Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 4 of 7 want to have water service and he told them they still have to have the water circulating in the system.The water cannot sit still and become stagnant.He asked if that was correct. District Director Frank Blanco stated that is correct.It still has to meet the requirements for safe drinking water as well. District Manager Bryant Powell asked if there are any other reasons the board may need to know as to why it needs to be maintained. District Director Frank Blanco stated they have to make sure everything is operating. They cannot stop treating the water as there are safe drinking water standards because there are less people out there.They have to meet all the same requirements they do year round.The water has to be readily available for health and safety. Vice Chairperson Wilson commented they cannot lay people off because half the people shut their system down because all the work still needs to be done. District Director Frank Blanco stated they still have to check the water to make sure it is safe.They still have to do everything they normally do. Chairperson Serdy asked if the district donates the water when the fire district fills a tanker. District Director Frank Blanco stated they keep track of how much water they use so that the district can report it on an annual basis to the Department of Water Resources.We do not charge them for the water. Chairperson Serdy closed the discussion with no further comments and called for a motion. Mrs. Rizzi MOVED THAT RESOLUTION NO. 2017-004, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 5 of 7 APACHE JUNCTION, ARIZONA), RE -ADOPTING ALL EXISTING RATES, USER FEES AND CHARGES FOR FISCAL YEAR 2017-2018, INCLUDING NEW RATES FOR MONTHLY BASED SERVICE CHARGES INSIDE AND OUTSIDE CITY LIMITS, WATER CONSUMPTION RATES PER 1,000 GALLONS INSIDE AND OUTSIDE CITY LIMITS, RESIDENTIAL SERVICE AND METER INSTALLATION FEES, SYSTEM CONNECTION FEES, STANDPIPES AND FIRE HYDRANT METERS; AND ESTABLISHING AN EFFECTIVE DATE, BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Serdy called for a motion to adjourn the meeting. Vice Chairperson Wilson MOVED TO ADJOURN THE MEETING. Chairperson Serdy adjourned the meeting at 6:25 p.m. with no vote. ACCEPTED THIS q • -rid DAY OF ,x-p7ell6ci ,2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 6 of 7 SIGNED AND ATTESTED TO THIS 3itio DAY OF a l p 4 /40C 2017. eff Se/My hairperson 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 June, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 17th day of July, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of June 20, 2017 Page 7 of 7 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING September 19, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on September 19, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Barker Mrs. Evans Mr. Struble Mr. Waldron Staff Present: Others Present: (Mrs. Rizzi was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Al Bravo, Public Information Officer APPROVAL OF MINUTES OF JUNE 20, 2017 Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 1 of 15 )Chairperson Serdy called for a motion. Mr. Waldron MOVED THAT THE MINUTES OF JUNE 20, 2017 BE APPROVED. Vice Chairperson Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. CONCEPT TO INCLUDE ADVERTISEMENT INSERTS IN WATER BILLS )District Director Frank Blanco briefed the board on the item. Mr. Waldron asked who would pay for the printing. District Director Frank Blanco stated the advertisers essentially end up paying for the printing and reproduction of the ads that get inserted.The City of Mesa sells ads to businesses that want to advertise through the inserts in the water bills. Mr. Waldron asked if competing businesses could be in the same envelope. District Director Frank Blanco stated it is his understanding that they can.If they want to participate the policy is they have to be a City of Mesa business or have a presence in the City of Mesa. District Clerk Kathleen Connelly stated there is a big difference between a business that is located in the City of Mesa as opposed to a business from Phoenix who is doing business in the City of Mesa.She asked if they make a distinction. District Director Frank Blanco stated it is his understanding there is a difference for Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 2 of 15 them.They have to be a business that is located in the City of Mesa is what he was led to believe. Mrs. Evans asked if they need to do any kind of a disclaimer that would state we do not recommend or do something that shows there is no conflict like we are promoting one type of business over another if a reverse osmosis company wanted to advertise. District Director Frank Blanco stated the small print underneath the advertisement does exactly that.It is a disclosure.It is hard to see because it is pretty small. Assistant City Manager Matt Busby stated this is not necessarily a concept staff is recommending.They were asked to look into it and bring it forward.Vice Chairperson Wilson has seen it in a billing in one of his properties over the years.Staff did look into it a couple of years ago and they have additional information above that already on hand. Vice Chairperson Wilson commented he said they cover the printing costs.He asked if there are additional funds set aside for sending out the bills and things like that or is it just the cost of the printing. District Director Frank Blanco stated when he talked to the gentleman from the City of Mesa he was very cautious about the amount of weight that will be inside the envelope so it does not raise or increase the postage.That is a concern for them.He warned him about making sure it pencils out because if you have a situation where you are paying more to mail these advertisements than the amount you are getting back for advertising it will not work.It would cover the ads themselves and any additional postage required to mail it out. Mrs. Evans asked if they would make money. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 3 of 15 District Director Frank Blanco stated that is the big question.He continued his briefing and added they can ask more questions afterwards. Chairperson Serdy commented he is concerned that it could get too cluttered.He has a shop that sells firearms and he is a National Rifle Association member.His insurance is through them and he gets stuff from them all the time.He throws it away.Once a year his insurance bill is in there.He asked if there is any chance someone will look at it and decide it is just a bunch of ads and throw their water bill away.He asked how they would differentiate between what is a bill and the other stuff. District Director Frank Blanco stated it comes in a City of Mesa envelope that is their normal water bill.This is an additional insert in that same water bill.He understands there could be a danger in that it is just another ad.He does not know the answer to that but it is a good point. Chairperson Serdy commented he has started getting some bills that say "your statement enclosed".He would think that should be on top of there, that there is a statement inside so you do not think that it is just advertising. District Clerk Kathleen Connelly stated they would need to reprint the envelope. Mrs. Evans commented if they do not pay, Frank will turn their water off. Vice Chairperson Wilson commented then they find out real fast. Chairperson Serdy commented they can go to Fry's and get gift certificates to pay or else they get shut off immediately.Someone actually tried to hit him with that scam a few weeks ago.They were so convincing but it was with Salt River Project.They were saying he was going to be shut off this weekend and they had lost his bills. Although it was not his fault they wanted him to come and give Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 4 of 15 them some money right now.He went right down to Salt River Project and they got right on it.It is off the subject, obviously. District Director Frank Blanco continued with his briefing. District Clerk Kathleen Connelly asked if Mesa allows political advertisements. District Director Frank Blanco stated they do not. District Clerk Kathleen Connelly stated she remembered getting something once in the mail with the face of one of our perennial candidates that came with one of her bills. Chairperson Serdy commented they recently had a meeting in the Royal Palm area and one of the questions was how do they let people know and toyed with the idea of dropping a notice into the water bill.He asked how they would target certain areas.He asked if it was legal and who would choose what was worthy of being in there and what was not. District Counsel Joel Stern stated that would probably be the city manager.It would probably come down to a policy decision on what they want to use the billing process for.That includes advertising.They could certainly do it.They could also do announcements for meetings. But they need to remember this is the water board.He does not think they could put in things for the City of Apache Junction. There might be some budgetary and auditing issues there. Mrs. Evans commented it is the district. District Counsel Joel Stern stated that is correct.It is a separate district.It is not the city.There might be some confusion with that so there would be confusion with their now having a water department. Some people already think that.A lot of people actually do. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 5 of 15 It would be a city manager decision on what could go in the envelope and how often it would go with the bills. District Clerk Kathleen Connelly asked if they have to allow other meeting announcements that might not be social or whatever if they allow it, such as a meeting announcement or something, in one instance. District Counsel Joel Stern stated it would depend on what sort of meeting notices they are sending.If they are actual social events, announcing boys and girls club events, then he would agree they would probably have to expand that to other social groups. Chairperson Serdy commented he remembered back to when they had the G.A.I.N.That would have been a possibility. District Manager Bryant Powell stated he takes a different perspective for the city standpoint.In the last Manager's Minute, he had J.C. out there and he is working on Geographic Information Systems.In that system if they ever needed to communicate with a polygon or a circle they could draw that out and work with Larry's department on that.How they communicate and do that, they could definitely have that.He does not know if he would recommend it through the water district at all because he thinks they are talking about one-fourth of our city here.We are at 20,000 households.We are somewhere around 4,300 for the water district.We would work through the city's efforts on that. Mr. Waldron commented he has already seen this as going down the way of advertising on city vehicles.It looks like a complicated mess to do all that and get involved in what ad is appropriate and which one is not. There would be staff time involved and all that stuff with the number of bills we send out.That is just his feeling. District Director Frank Blanco stated that has been brought up. District Manager Bryant Powell stated the fire district is still dealing with that.If Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 6 of 15 you have a conversation with Banner, Banner execs, ask them about that.They will talk about that process.They will say they did not know.Remember when they went through that process about five years ago and they were advertising for who could be on the truck and Mountain Vista got it.He thinks the bid was $80,000 over a four year period, which was great, but the feelings still linger five or six years longer on the hospital that is in town.They tell him they did not know about it so they did not respond.He just thinks that could potentially be one thing with the businesses.The other thing to remember is that businesses are already advertising.They have a limited budget on their advertising.We found out when we worked with Steve Filipowicz a few years back on advertising dollars across the city.A group came in and did videos for them that were paid through other advertising dollars, not the city.From the city's standpoint it became a great deal.What ended up happening is people started taking the advertising dollars in their budgets here and cutting checks to the National League of Cities or whoever that was.He thinks it was a contractor. Assistant City Manager Matt Busby stated he thinks it was but he does not remember the name. District Manager Bryant Powell stated it was something like that.They cut the check and the city was out of it.They cut their advertising dollars check here but what ended up happening on the other side was he started hearing from other groups questioning what the city was doing.He asked what they meant.They said the videos they were advertising were not going to them, it was going to that video.That is one of the things that could come up on here. They will see this as an opportunity to use advertising dollars but they will not somewhere else. Mr. Waldron commented large print giveth and small print taketh away.He asked for a show of hands as to who reads fine print. Mrs. Barker asked who reads the advertisements that come in the mail. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 7 of 15 Mrs. Evans commented she has thrown every advertisement she ever got away.She never even looked at them. Mrs. Barker commented she has, too. Mrs. Evans commented but if they can make money on them that is good. Chairperson Serdy commented if he buys a magazine the first thing he does is rip those out of it.They keep the pages from turning. Mr. Waldron agreed. District Director Frank Blanco continued with his briefing. Mrs. Barker commented let us stick to treating and delivering water of the highest quality and keeping the prices down as much as we can. District Director Frank Blanco continued with his briefing. Mrs. Barker commented they would need an advertising sales representative. District Director Frank Blanco agreed.He continued with his briefing. Mr. Waldron commented his feeling is to focus on the mission critical water issues and leave looking at this at a future date.He does not see where it would change in the future. Mrs. Barker agreed. Vice Chairperson Wilson commented when he brought it up it was just something to look into to see if there was an advantage.He had even mentioned if it is going to require additional employment or work and Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 8 of 15 everything it is not worth it.He thinks he has answered all his questions on that and he agrees with Mr. Waldron and Mrs. Barker. District Director Frank Blanco stated the district feels that it is a good idea.It is a good concept.Whenever we grow, when that does happen and they are able to reach a greater number of individuals and businesses that would advertise, that might be a time to revisit it. Mrs. Evans commented if there was a company that just does this and could provide everything, but to add personnel for this, the water company is not an advertising company.If an advertising company offered it to the district with no additional cost to us, and we made money on it, then it would be to go ahead and try it. Chairperson Serdy asked if Mesa had already started District Director Frank Blanco stated they have. Chairperson Serdy asked for how long they had been doing it. Vice Chairperson Wilson commented they have been doing it for several years. Blanco stated they have. how long they had been doing it. District Director Frank Blanco stated he believed they started in 2009 or 2010 per the gentleman he spoke with this morning.With their size it has worked for them. Chairperson Serdy commented we probably have some staff that live in Mesa.He suggested they could bring a bill in and show them what it looks like. District Manager Bryant Powell stated they can look at that over time if they grow. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 9 of 15 Mrs. Evans commented Mesa owns their own water company. Assistant City Manager Matt Busby stated the first image he showed was a scanned image of some of their actual advertising. District Director Frank Blanco stated it was an example of their bill. Assistant City Manager Matt Busby stated it is what they actually get.They just stuff the bill. Vice Chairperson Wilson commented they are very lightweight so they do not have to increase the postage. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco gave the board a brief overview of water quality. Mr. Struble commented he understands that 85 parts per billion of total trihalomethanes is a small amount and it is nothing to be worried about.He asked if it is something that stays within the water pipes and the infrastructure or does it clean out as it goes along. District Director Frank Blanco stated it is in the water that is delivered and is only there for the period of time for the water to be consumed or flushed out.It does not stay on the pipe or the plumbing fixtures. Mr. Struble commented people in their homes do not have to worry about it.Whatever is staying in their homes continuously gets flushed out. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 10 of 15 District Director Frank Blanco stated that is correct.It is not like lead and copper that cause problems with the pipes.He continued with his briefing on water quality standards for non- project water. Mr. Struble asked what the Metro district is. District Director Frank Blanco stated Metro Water District is the water district north of Tucson.They are responsible for delivering water to a small area.He continued with his briefing. District Superintendent Mike Loggins gave a quick update on the meter replacement program. Chairperson Serdy asked what the cost of a meter is. District Superintendent Mike Loggins stated the cost of a meter is about $100.They have to remove the existing one and replace it.It is not all that expensive in the scheme of things. Chairperson Serdy commented it is way cheaper than a gas meter. He knows that they are very expensive. District Superintendent Mike Loggins continued with his briefing. Mr. Struble commented the customers that complained were probably not satisfied.He asked if they eventually came to understand what took place. District Superintendent Mike Loggins stated some of them do understand it and some of them are saying there is no way.As you can see, after getting a real high water bill for two months they went out to see what they can turn off or change.They then see that it is now only double instead of quadruple what it was.They see something is happening and they see the need to do something themselves to lower their water bills.It has benefitted them. Chairperson Serdy asked if large, commercial users have the same type of meter. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 11 of 15 District Superintendent Mike Loggins stated their meters are a little different and tested a little differently.They did 2" meter change out programs about two years ago and noticed a huge benefit in that, also.It almost doubled the amount of water they were receiving.A huge trailer park receives the most amount of water so the district received the most benefit in changing those meters out.They also have a large meter replacement program they have been working on.He then briefed the board on the account re-establishment fee. Mrs. Evans asked what the base fee is. District Superintendent Mike Loggins stated it is around $25 for a 5/8 or 3/4 meter.He continued with his briefing.He then gave them an update on the water system. Mr. Struble commented coming from the sewer district, they had great germs they had to speak about every month.He asked if there is something that can be done with the algae so it would not cause issues with the water in there so they would not have to have staff clean it out all the time. District Superintendent Mike Loggins stated there are certain things they can do and that is what they hired Carollo to find out about.That is part of the study.Some of it is organics in the water.When chlorine is added to the water it kills it off and takes care of some of those issues.They are looking into it.Central Arizona Project does not guarantee the quality of water that is delivered.We are involved in that wheeling agreement that Frank talked about earlier where they will determine what water quality can actually be put into the canal. They can install different treatment processes in the raw water basin.They can add chemicals to treat that before it hits the plant.This is something new to them and it is the worst they have seen in five years.They need to analyze how much they want to do up front.There are treatments that can help, they have different strainers and different companies they are working with to resolve this. Mr. Struble asked if that had anything to do with it being a hotter summer or anything like that. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 12 of 15 District Superintendent Mike Loggins stated they are not really sure.At first it is like a mush or grassy thing that sticks. As it goes through the strainer it turns into a long strand like a piece of hair and changes its formation and gets stuck in a different way.It is an unusual type of algae they are having. They are trying to get through it and resolve some issues.He believes in February he will be doing a presentation to AZ Water Conference staff on the algae and the different things they can do to treat it.He will update them as they get further into the process.He continued with his update on the water system. Mrs. Barker asked what will happen to the 1,000,000 gallon tank that is not being coated.She asked if it is being replaced. District Superintendent Mike Loggins stated they are holding off on doing the rehabilitation on it until next year.They are doing the two 500,000 gallon tanks this year. Mrs. Barker asked if they will be draining the 1,000,000 gallon tank. District Superintendent Mike Loggins stated they pump them down as low as they can so they do not waste any of the water.In the two 500,000 gallon tanks, they are 24' tall so they pump them down to 4'.Once they get down to 4' they get a vortex in them and they start sucking air.They cannot put air into the system so they have to stop it at that point.They drain them the rest of the way from there.If they have seen water going down 16th Avenue over the last couple of days, that is where it comes from. Utility Billing Supervisor Evie McKinney introduced new Administrative Assistant Rita Spicer Vineyard to the board and gave an update on the payment portal.She then briefed the board on a shut-off avoidance pilot program that started in May. Chairperson Serdy commented they do not take payment in Fry's gift certificates. Utility Billing Supervisor Evie McKinney stated they do not. Mr. Waldron commented the new website looks good. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 13 of 15 DISTRICT TREASURER REPORT District Treasurer Donna Meinerts briefed the board on the monthly financial statement that goes through the month of August. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:55 p.m. ACCEPTED THIS DAY OF Oe-ro‘c-e.., 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS / q DAY OF e671,66e._, 2017. Jeff #rdy Chairl5erson 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 19th day of September, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 14 of 15 Dated this 2nd day of October, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of September 19, 2017 Page 15 of 15 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING October 17, 2017 •The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on October 17, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson Mrs. Barker Mrs. Evans Mr. Struble Mr. Waldron Staff Present: (Mrs. Rizzi was absent.) Bryant Powell, District Manager Kathleen Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Others Present:Rita Vineyard, Administrative Assistant Al Bravo, Public Information Officer APPROVAL OF MINUTES OF SEPTEMBER 19, 2017 )Chairperson Serdy called for a motion. Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 1 of 10 Ms. Barker MOVED THAT THE MINUTES OF SEPTEMBER 19, 2017 BE APPROVED. Mr. Waldron SECONDED THE MOTION. VOTE:Unanimous. The motion carried. AWARD OF BID FOR CONSTRUCTION CONTRACT WITH REVOLUTION INDUSTRIAL, LLC FOR COATING THE INTERIOR AND EXTERIOR ON TWO 500,000 GALLON STEEL TANKS, EXTERIOR COATING OF A 1,000,000 GALLON STEEL TANK AND RELATED . MISCELLANEOUS ITEMS AT WATER STORAGE SITE AND BOOSTER STATION LOCATED AT 16TH AVENUE AND BUENA VISTA DRIVE ) )District Superintendent Mike Loggins briefed the board on the item. Mrs. Barker asked what they coat this with. District Superintendent Mike Loggins stated there is a coating that is in a separate group that is inside the tank that has to meet certain standards. They go in and sandblast the tank back to near pure metal again and then they put this coating on that is polyethylene.It is about 12 mils thick and can go up to 20 mils thick.It is about the thickness of a dollar bill.They put it on the wall to reseal everything up.Any welds, sharp edges or things that have to be grinded down are done prior to the painting as that is where the corrosion would start.They paint the inside like that.It will go from the current dark, rust areas to like an operating room when they are finished.It will be a bright white with everything clean. Mrs. Barker asked how long it lasts, the lifetime of a coating. Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 2 of 10 District Superintendent Mike Loggins stated a coating usually lasts 7 to 10 years.They check them after a year to verify how they are and they check them every three years to make sure the coating is still standing.They can do minor touch ups in the meantime. Chairperson Serdy asked if there is any harm in rust.If you cook with a cast iron skillet you are actually getting the benefits of the iron. District Superintendent Mike Loggins stated most of that stuff stays in the tank but they may gain a little iron.That is why they have iron testing for Arizona Department of Environmental Quality.They have to make sure they meet all the certification standards.It does not go out into the system and typically stays in the tank.It is so minute it does not affect anybody. Mr. Waldron commented he knows it is starting later than October 2, 2017.He asked if it is still a two -month time frame. District Superintendent Mike Loggins stated it is.They are working with the contractor. They originally had $200,000 for this project in the budget for this year to paint the 1,000,000 gallon storage tank.They had to move to the 500,000 gallon tanks because of the hole in one of them.They will more than likely just paint the interior and will postpone the exterior until July so they can budget the rest of it for the following year. Mrs. Barker asked if there is a warranty on this. District Superintendent Mike Loggins stated there is a one year warranty.That is why they will go back and take the tank out of service to make sure it is clean like it was the day they painted it. Chairperson Serdy closed the discussion with no further comments and called for a motion. Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 3 of 10 Mrs. Barker MOVED THAT APPROVAL BE GIVEN FOR THE CONSTRUCTION CONTRACT BETWEEN APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT AND REVOLUTION INDUSTRIAL, LLC FOR COATING THE INTERIOR AND EXTERIOR TWO 500,000 GALLON STEEL TANKS, EXTERIOR COATING OF A 1,000,000 GALLON STEEL TANK, AND RELATED MISCELLANEOUS ITEMS IN THE AMOUNT OF $385,375.00 PLUS 10% FOR CONTINGENCIES IN THE AMOUNT OF $38,537.50 FOR A TOTAL AMOUNT NOT TO EXCEED $423,912.50; AND THAT AUTHORIZATION BE GIVEN FOR THE CHAIRPERSON TO SIGN THE CONTRACT PENDING FINAL APPROVAL AS TO FORM BY THE DISTRICT COUNSEL. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco briefed the board on the City of Mesa Intergovernmental Agreement regarding treated water from the district's Central Arizona Project allotment. Mr. Waldron asked how long the canal outage planned by the Central Arizona Water Conservation District would last in 2019. District Director Frank Blanco stated the outage is planned from November into December of 2019.They may be able to take water for the first two weeks until the water level drops too low.He continued with his briefing. Mrs. Barker commented he is proposing that on a monthly basis water will be going to Mesa and the district will be drawing down water from Mesa for a price. Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 4 of 10 District Director Frank Blanco stated that would be under an emergency situation only.Normal operations are treating the water at the Superstition Area Water Plant. Mrs. Barker asked if the contract is only for emergencies. District Director Frank Blanco stated primarily yes. Mrs. Barker commented she sees the emergency water charge but then she sees a monthly quantity fixed charge of $1,233.She asked if that is for the storage itself. District Director Frank Blanco stated they are actually negotiating that charge right now.It is like a base rate, like what they charge customers to be connected to the system.They are not agreeing to pay that amount. City Attorney Joel Stern stated it is actually the privilege of connecting to it.It came up in a meeting where he, Frank and Mike showed up.They questioned that but that is what they do, including with other agencies. Mrs. Barker commented in reality they have the ability in times of emergency on their part to withhold that water. District Director Frank Blanco stated if they are not able to deliver the water that is in the contract, she is correct. City Attorney Joel Stern stated they are at their beck and call on this one.It is their water. Assistant City Manager Matt Busby stated we are treating our own Central Arizona Project water.If something went wrong there, Mesa would treat our Central Arizona Project allocation until we are able to achieve that.So really it is for an emergency for when something goes wrong and we cannot provide our own treated water.It is their plant. Mrs. Barker commented their monthly charge seems really weird if we are looking at it for an emergency use rather than a monthly use.She could understand it if we are looking at drawing water on a monthly basis from this facility that we would obviously Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 5 of 10 pay x amount of dollars.But when this is an emergency sort of contract it seems a little off. District Director Frank Blanco stated the amount is higher than what it should be.She is absolutely correct.They are working on that one. Mr. Struble commented he had that same question.Entities have intergovernmental agreements between them for emergency purposes to share equipment and that type of stuff.There is not a monthly fee to do that.He asked what economic cost they have to justify charging us just because we want to sign this intergovernmental agreement with them. District Director Frank Blanco stated AZ Warn has that type of an agreement where we have an agreement with the rest of the members of Arizona Warn and we do not pay them a monthly fee to be members of AZ Warn.AZ Warn does not cover water outages. The water outage we are looking at here, the emergency here, is purely for a water outage in case we are not able to supply from our water facility. Mr. Struble commented he totally understands that but they do not have any economic costs, it is a fee in there just in case, and then even if just in case we need it and they cannot deliver, they have that right not to deliver it.We have been paying them a monthly fee for nothing. District Director Frank Blanco stated the district also has the ability to bring water through our connection to the City of Mesa.They have the interconnect facility at Signal Butte and Baseline.They have to purge that line from time to time so that if they do have to deliver water through there the water is not stagnant and safe for consumption.Operationally they need the connection to be able to use that for the emergency basis purpose.If they are not able to deliver that water, the district does have the ability to run its wells.The emergency would be if the water treatment plant was down.If that was the situation, the district may not have enough water from its wells to supply the customers.It is unlikely, although if it is a catastrophic problem, then everybody in the valley is going to have a problem getting water no matter who you are.That is taking it to another level.In a normal situation that is a Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 6 of 10 problem for us and we are not able to get the water, that is what the agreement is all about. Mrs. Barker commented that we are going to replace that water every October so it is not as though they are just giving us this water and we are paying them $1,233 a month for that privilege.We have to replace that water every year. District Director Frank Blanco stated that is correct. Mrs. Barker commented work on it. District Manager Bryant Powell stated he wanted to ask Frank a question in terms of economics.Alternatives are also an option.In the past they have experienced working with a private company called Arizona Water.He asked what they charge. District Director Frank Blanco stated Arizona Water was charging around $140,000 a year to be able to use their transmission main to get the water Mesa was treating for us before.On an economic basis, this is still a better situation than we had prior to 2008. District Manager Bryant Powell stated significant privilege and opportunity to be able to have the ability on an emergency plan C.We have our wells and we have back up. District Director Frank Blanco stated the agreement is not yet completed and they will be coming back with the final one. Mr. Struble commented basically they are paying for a warranty or insurance policy in case they need it.He just has to get his brain around doing that. Mrs. Barker commented they are paying $130,000 a year for an insurance policy. District Director Frank Blanco stated for them to be connected to their system. District Manager Bryant Powell stated before they had the interconnect with Arizona Water they had a situation that just Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 7 of 10 about ran this water district bankrupt.It was about 10 years ago when they got put in a spot without a very good back up and the back up went down, and they went to the back up for the back up which was a putting a straw in a canal and they started pumping.It was hundreds of thousands a month and they were in big trouble.He knows this sounds like a lot but for him, from a big picture standpoint, they are doing all they can do to be prepared so they go nowhere near this again.If they need it, it is there. District Director Frank Blanco stated they paid over $8 million for that. District Manager Bryant Powell stated and they keep adding zeroes. Mrs. Barker commented they can still work on it, though. District Director Frank Blanco stated it is not finalized yet. They are just giving them an update on it.He continued with his briefing. District Manager Bryant Powell asked if it is accurate to say that cities and towns in northern Pinal County have water or if Apache Junction has water available.He keeps talking about this to every developer that is interested in our city, that we have got almost 3,000 acre feet capacity in our system to do another 10,000 homes.It is troubling to hear that there is a thought that there is not water.We do have water and he has done a great job in preparing them for the future. District Director Frank Blanco stated that is correct.Southern Pinal County is different than Apache Junction.It is not in the same situation as to water.He continued with his briefing. Chairperson Serdy commented it seemed like they got a lot of rain dumped on them this summer.He asked if that helped in the overall area. District Director Frank Blanco stated the rain that gets dumped in our area really does not replenish our water supply.It might help with the ground water.The supply that helps us comes from the snow melt on the Rocky Mountains which goes into Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 8 of 10 Lake Mead and the Colorado system.He envisions in the future one water concept where they would own the storm water, waste water and the water rights making it one water.They would be able to utilize that in the future and it would make a difference.They would be able to manage that as a resource but they do not currently have that available to them.He concluded his briefing on the intergovernmental agreement and began his briefing on a water reuse symposium he attended, new technologies in managing risk and water reuse in Apache Junction. Mr. Waldron asked what the cost difference is between a bottle of this purified water from the portable plant and regular drinking water. District Director Frank Blanco stated it will be very expensive water for them to deliver through their pipelines for people to flush their toilets.When they start delivering this type of water there will be a dual system with a drinking water side and another side for watering the lawn, doing laundry, flushing toilets and other things of that nature.He continued with his briefing. District Superintendent Mike Loggins briefed the board on the purification process in Apache Junction in the future, the Superstition Area Water Treatment plant, a water system update and a payment portal update. DISTRICT TREASURER REPORT District Treasurer Donna Meinerts briefed the board on the most recent updates from 2017 and the first two months of 2018. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:43 p.m. ACCEPTED THIS 4 5 7 —DAY OF We'Veni6-rv--i<, 2017, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 9 of 10 SIGNED AND ATTESTED TO THIS cAVS -7-DAY OF 2017. Serdy airpersol 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 17th day of October, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 7th day of November, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of October 17, 2017 Page 10 of 10 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING November 21, 2017 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on November 21, 2017 at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Chairperson Serdy called the meeting to order at 6:00 p.m. ROLL CALL Board Members Present:Chairperson Serdy Vice Chairperson Wilson (arrived 6:17 p.m.) Mrs. Evans Mr. Struble Mr. Waldron Staff Present: (Mrs. Barker and Mrs. Rizzi were absent.) Bryant Powell, District Manager Joel Stern, District Legal Counsel Frank Blanco, District Director Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Others Present:Rita Vineyard, Administrative Assistant Jan Mason, Deputy City Clerk APPROVAL OF MINUTES OF OCTOBER 17, 2017 )Chairperson Serdy called for a.motion. Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 1 of 6 Mr. Waldron MOVED THAT THE MINUTES OF OCTOBER 17, 2017 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco briefed the board on the City of Mesa Intergovernmental Agreement regarding treated water from the district's Central Arizona Project allotment and the groundwater savings facilities and underground storage. Mr. Waldron asked what is used to determine where the groundwater locations are.With the Superstition Mountain Recharge Project and New Magma, one is small and the other large.He asked what determines the boundaries for them. District Director Frank Blanco stated to have a recharge project such as Superstition Mountain Recharge Project it must be an underground storage facility.The Central Arizona Water Conservation District owns the facility.In order for them to get credits to recharge at that facility they have to apply to Arizona Department of Water Resources.They had to prove that the facility would be able to recharge an annual quantity of water.It was initially permitted for 30,000 and has now been increased to 60,000.The GFFs, which are New Magma, Salt River Project and Roosevelt Water Conservation District all had to apply to Arizona Department of Water Resources and prove that area would be able to recharge the water they are permitted for. Roosevelt Water Conservation District is a much larger area and Salt River Project is the largest of all. Mr. Waldron asked what determines the boundaries. Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 2 of 6 District Director Frank Blanco stated they are determined by their service area boundaries.Superstition Mountain is an area that is defined as the project where they would actually be recharging that water.They cannot go beyond the permitted area. Chairperson Serdy asked if Arizona Water does any recharging. District Director Frank Blanco stated Arizona Water is in the process of developing a recharge project.In the last couple of years they got an agreement with Roosevelt Water Conservation District to recharge there as well. Assistant City Manager Matt Busby asked if they pump water out of the ground and pump it back into the ground.He asked if they were all groundwater. District Director Frank Blanco stated they are, but they do have rights to Central Arizona Project water.In lieu of the Central Arizona Project water they deliver that water to Roosevelt Water Conservation District.That is not groundwater.He continued with his briefing. District Counsel Joel Stern asked how remote is it for the likelihood of Mesa to not be able to deliver water compared to what we are taking out of their system. District Director Frank Blanco stated historically no emergency has ever been declared.It has never happened.The district would be taking between 1 and 2 million gallons a day and it is currently between 1 and 2 million gallons a month.In an emergency situation it could be more than that but it would be a significantly small number compared to the capacity of the Mesa system. District Counsel Joel Stern asked how many million gallons they have available. District Director Frank Blanco stated he believes their Brown/Rural plant might be something around 40 million a day. District Counsel Joel Stern stated we are talking 1 or 2 million a day here at most. Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 3 of 6 District Director Frank Blanco stated that is correct.It is a small amount of water that has never been declared.The proposed intergovernmental agreement also reduces the risk of a Mesa service priority being declared.It provides for an additional water source by using recovered water through the Salt River Project system and the Val Vista plant.He continued with his briefing. Mrs. Evans commented the previous agreement has the two-year extension.The new one has two four-year extensions.She asked why that was changed. District Director Frank Blanco stated the district was asking for a twenty-year agreement but they were only willing to give us an agreement that basically comes down to fourteen years. That is their legal department not wanting to have agreements out there that are extending too long and slipping through the cracks like this one did, where they did not ask to cancel the agreement. Mr. Struble commented it used to be ten years and then two years.Now it is six years then four and four.He asked if there was a reason for that. District Director Frank Blanco stated it is just the way it was written. District Counsel Joel Stern stated they had a long discussion about that in Mesa.They would not budge on that issue.That is their style and what they wanted to do.They have other agreements with other agencies.We are glad they are partnering but twenty years would have been nice.But it would not fly. Assistant City Manager Matt Busby stated he recalled a bill during the latest legislative session that he is not sure passed.It was about intergovernmental agreements that extended for long terms and required reporting periods to the state. Basically there is a little more scrutiny and Mesa may have gotten a little hypersensitive to that. Water Superintendent Mike Loggins briefed the board on water quality, the water system and the payment portal. Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 4 of 6 Mr. Waldron commented the new portal has been quite a project. Water Superintendent Mike Loggins stated it was all part of the new web page. DISTRICT TREASURER REPORT Assistant City Manager Matt Busby stated District Treasurer Donna Meinerts is out ill today.If they have any questions on the report he will pass those along to her unless someone else from the district can answer it.They were not prepared to cover for her in her absence. Chairperson Serdy asked if they are still in the black. District Superintendent Mike Loggins stated they are still in the black.They were in the red the two previous years because they were building the treatment plant and were waiting to get our money back from Water Infrastructure Finance Authority. That is why they see the difference in the past.It is not the normal way they operate.They should continue to operate in the black in the future. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:25 p.m. ACCEPTED THIS /10-4 DAY OF \vnAW-AY , 2018, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 2018. &-r4 DAY OF Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 5 of 6 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 21st day of November, 2017.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of December, 2017. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of November 21, 2017 Page 6 of 6 City of Apache Junction, Arizona Meeting Minutes Water Utilities Community Facilities District City Council Chambers 300 E Superstition Boulevard Apache Junction, AZ 85119 www.ajwaterdistrict.org P: (480) 982-6030 Tuesday, May 21, 2019 6:00 PM City Council Chambers Notice of Meeting NOTICE OF PUBLIC MEETING AND AGENDA OF THE DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) Pursuant to A.R.S. § 38-431.02, notice is hereby given to the members of the District Board of the Water Utilities Community Facilities District, (City of Apache Junction, Arizona), and to the general public, that on Tuesday, May 21, 2019 at 6:00 p.m., the District Board of the Water Utilities Community Facilities District will hold a meeting open to the public at the Apache Junction City Council Chambers, 300 E. Superstition Blvd., Apache Junction, AZ. A.Call to Order Chairperson Serdy called the meeting to order at 6:02pm. B.Roll Call Staff in attendance Bryant Powell, District Manager Matt Busby, Assistant District Manager Jennifer Pena, Deputy District Clerk Joel Stern, District Legal Counsel Eric Yuva, Assistant District Legal Counsel Frank Blanco, District Director Mike Logg ins, District Superintendent Evie McKinney, Utility Billing Supervisor Donna Meinerts, District Treasurer Connie Chow, District Controller Al Bravo, Public Information Officer Present Absent C.Agenda Items Thomas Kelly, Chief of Police Larry Kirch, Dev. Svcs Dir. Dave Zellner, Building Official Michael Weyer, PW Dir. Janine Solley, ED Director Struble arrived at 6:04 PM - move him to present arriving at 6:04 5 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, and Board Member Schroeder 2 -Board Member Rizzi, and Board Member Struble City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes May 21, 2019 1.19-207 Discussion on proposed District budget for Fiscal Year (FY) 2019-2020 to include proposed rates, fees, and charges applicable during FY 2019-2020 and classification plan for district employees. District Director Frank Blanco presented an overview on the proposed District budget to include proposed rates, fees, and charges applicable during for Fiscal Year 2019-2020 and capital improvement projects planned for Fiscal Year 2019-2020. Board Member Struble joined meeting at 6:04 p.m. District Director Frank Blanco presented an overview on future Central Arizona Project water charges and how they will impact the cost to the Water District to produce water. These costs are a contributing factor for the need to increase rates effective October 1, 2019. District Superintendent Mike Loggins presented an overview on rates, fees, and charges that will be increased effective October 1, 2019. District Superintendent Mike Loggins presented an overview on the classification and compensation plan for district employees. Chairperson Serdy closed the discussion with no further comments and called for a motion. 2.19-208 Consideration of Resolution No. 2019-003, declaring as public record and adopting certain documents filed with the District Clerk entitled "Apache Junction Water District Utilities Community Facilities District Classification Plan for Fiscal Year 2019-2020", "Apache Junction Water District Utilities Community Facilities District Compensation Plan for Fiscal Year 2019-2020", Apache Junction Water District Utilities Community Facilities District Flat and Hourly Schedule for Fiscal Year 2019-2020". Board Member Evans made a motion that Resolution No. 2019-003, 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 "Apache Junction Water Utilities Community Facilities District Classification Plan for Fiscal Year 2019-2020"; "Apache Junction Water Utilities Community Facilities District Compensation Plan for Fiscal Year 2019-2020"; AND "Apache Junction Water Utilities Community Facilities District Flat and Hourly Schedule for Fiscal Year 2019-2020" be approved. Vice Chair Wilson seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Schroeder No:0 Absent:1 -Board Member Rizzi D.Public Hearing City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes May 21, 2019 3.19-237 Public hearing on proposed budget and rate schedule for Fiscal Year 2019-2020. Chairperson Serdy called for a public Hearing on proposed budget and rate schedule for Fiscal Year 2019-2020. Tom Krukow, 3400 S. Ironwood Drive Lot 156, Apache Junction, spoke out about the percentage of increase in water rates and the increase in rates for residents in the county island as opposed to the rates for residents in the city. Chairperson Serdy closed the public hearing with no further comments and called for a motion. 4.19-209 Consideration of Resolution No. 2019-004, pursuant to A.R.S. § 48-716, adopting a proposed budget for the fiscal year beginning July 1, 2019 and ending June 30 2020; adopting proposed rates, fees, deposits, water resources acquisition fees and charges applicable for the fiscal year beginning July 1, 2019 and ending on June 30, 2020; establishing a public hearing on the proposed budget; and directing district staff to solicit comments for the City of Apache Junction on the proposed annual budget. Board Member Barker made a motion that Resolution No. 2019-004, a resolution of the Board of Directors of the Water Utilities Community Facilities District (City of Apache Junction, Arizona), pursuant to A.R.S. § 48-719, adopting a proposed budget for Fiscal Year beginning July 1, 2019 and ending on June 30, 2020; adopting proposed rates, fees, deposits, water resource acquisition fees and charges applicable for the Fiscal Year beginning July 1, 2019 and ending on June 30, 2020; 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 final budget adoption be held on June 18, 2019 at 6:00 p.m. in the Apache Junction City Council Chambers, 300 East Superstition Boulevard, Apache Junction, Arizona. Board Member Evans seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Schroeder No:0 Absent:1 -Board Member Rizzi E.District Manager Report No report. F.District Director Report - Presentation and discussion of the following items: No report. G.District Treasurer Report - Presentation and discussion No report. H.Adjournment Chairperson Serdy adjourned meeting at 6:21 p.m. Cfty of Apache Junction, Arizona Page 3 Water Utilities Community Facilities District Meeting Minutes May 21, 2019 , ACCEPTED THIS / X DAY OF 3i2,Un..12 , 2019, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS DAY OF , 2019. ATTEST: KATIH,..,c•EN coNNEwy District Clerk JEFF SER 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 A iJunction, Arizona, held on the f0,"day of Meye%,,1O1 c1 I further certify that the meeting was duly called and held and tt-M.a quorum was present.I further certify that the meeting was duly called and held and 'hot a quorum was present. Dated this "day of LittAk., 2019. A LEEN CO District Clerk i lett N LY City of Apache Junction, Arizona Page 4 City of Apache Junction, Arizona Meeting Minutes Water Utilities Community Facilities District City Council Chambers 300 E Superstition Boulevard Apache Junction, AZ 85119 www.ajwaterdistrict.org P: (480) 982-6030 Tuesday, May 7, 2019 6:00 PM City Council Chambers Notice of Meeting NOTICE OF PUBLIC MEETING AND AGENDA OF THE DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) Pursuant to A.R.S. § 38-431.02, notice is hereby given to the members of the District Board of the Water Utilities Community Facilities District, (City of Apache Junction, Arizona), and to the general public, that on Tuesday, May 7, 2019 at 6:00 p.m., the District Board of the Water Utilities Community Facilities District will hold a meeting open to the public at the Apache Junction City Council Chambers, 300 E. Superstition Blvd., Apache Junction, AZ. A.Call to Order Chairperson Serdy called the meeting to order at 6:00pm. B.Roll Call Staff in attendance Bryant Powell, District Manager Matt Busby, Assistant District Manager Jennifer Pena, Deputy District Clerk Joel Stem, District Legal Counsel Frank Blanco, District Director Mike Loggins, District Superintendent Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Donna Meinerts, District Treasurer Connie Chow, District Controller Liz Riley, Human Resources Director Al Bravo, Public Information Officer Present 6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble, and Board Member Schroeder Absent 1 -Board Member Rizzi C.Agenda Items 1.19-196 Approval of minutes of meeting of April 16,2019. Board member Barker made a motion to approve the minutes of April 16, 2019. Vice Chairperson Wilson seconded. City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes May 7, 2019 Yes:6 -Chairperson Serdy, Vice Chair \Nilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Schroeder No:0 Absent:1 -Board Member Rizzi 2.19-204 Discussion and consideration of Resolution No. 2019-002 authorizing the District to enter into an Intergovernmental Agreement with the Salt River Valley Users' Association and the Salt River Project Agricultural Improvement and Power District for a well lease, long term storage credit recovery and water transportation. District Director Frank Blanco presented an overview on the application submitted for Salt River Project (SRP) recovery wells permit for SRP/AJWD Intergovernmental Agreement (IGA). This would allow the Water District to use the wells to recover long term storage credits. He also explained the terms, costs and fees associated with the agreement as requested by Board Member Barker. Chairperson Serdy asked what work is being done to the canal. District Director Frank Blanco explained the pipes are being drained to clean out the siphons that connect the Central Arizona Project (CAP) system to the SRP system, but there will still be water in the CAP canal until it is used up. The IGA allows for use of the wells if and when the canal water is no longer available. Work is scheduled to take 4-6 weeks and will occur between November and December 2019. District Director Frank Blanco explained the Agreement has been finalized and reviewed by SRP Water Contracts Attorney and Water District Attorney for your consideration. Chairperson Serdy closed the discussion with no further comments and called for a motion. Board member Barker made a motion that Resolution No. 2019-002, a resolution of the Board of Directors of the Water Utilities Community Facilities District (City of Apache Junction, Arizona) authorizing the District to enter into an Intergovernmental Agreement with the Salt River Valley Users' Association and the Salt River Project Agricultural Improvement and Power District for a well lease, long term storage credit recovery and water transportation be approved. Vice Chairperson Wilson seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Schroeder No:0 Absent:1 -Board Member Rizzi City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes May 7, 2019 3.19-185 Discussion on proposed District budget for Fiscal Year (FY) 2019-2020 to include propsed rates, fees, and charges applicable during FY 2019-2020 and classification and compensation plan for district employees. District Director Frank Blanco presented an overview on the proposed District budget to include proposed rates, fees, and charges applicable during for Fiscal Year 2019-2020 and classification and compensation plan for district employees. District Superintendent Mike Loggins presented an overview on capital improvement projects planned for Fiscal Year 2019-2020. District Director Frank Blanco presented an overview on future Central Arizona Project water charges and how they will impact the cost to the Water District to produce water. These costs are a contributing factor for the need to increase rates effective October 1, 2019. Board Member Rizzi joined meeting at 6:12 p.m. District Superintendent Mike Loggins presented an overview on rates, fees, and charges that will be increased effective October 1, 2019. The base rate for customers within the city limits will increase 5.0% and there will be no changes to the consumption rate or consumption tiers. The overall increase within city limits will be 2.0%. The base rate for customers in the county or county islands will increase 5.0% and there will be a 5.0% increase in the consumption rate and no change to the consumption tiers. The overall increase in the county or county islands will be 4.8%. Board Member Rizzi asked if there would be a point and time when rates would level out District Manager Bryant Powell explained that approximately 10 years ago the Water District had gone a few years with no rate increase. After a rate study was performed they found that the rates needed to be increased to cover some debt and a large increase was required. Because of this the previous board recommended steady incremental changes to avoid a large increase at one time. District Superintendent Mike Loggins presented an overview on the classification and compensation plan for district employees. D.District Manager Report District Manager Bryant Powell read the retirement letter received from Water District Director Frank Blanco. Frank Blanco will be retiring August 3, 2019. E.District Director Report - Presentation and discussion of the following items: 4.19-186 Water Quality update District Superintendent Mike Loggins briefed the board on the current TTHM levels. The levels are down and the locational running annual average is below the maximum allowable level of 80. District Director Frank Blanco presented an overview on the drought contingency plan. Congress passed the plan and it was signed by the president The Arizona and Colorado snowpack were above normal this year and the April 2019 24 -Month Study Report "projections" show no shortage in 2019 and 2020 on the Colorado River system. City of Apache Junction, Arizona Page 3 Water Utilities Community Facilities District Meeting Minutes May 7, 2019 5.19-187 Consumer Confidence Report (2019 Water Quality report) District Director Frank Blanco briefed the board on the Consumer Confidence Report, also known as the 2019 Water Quality Report. He thanked Rita Vineyard, the Water District Administrative Assistant for completing the report in a timely manner. This year's report was due the end of April. The report provides information on where the Water District's water comes from, the water quality, what constituents are found in the water and provides a table showing what contaminants are tested for and their levels. 6.19-188 Water Festival recap District Director Frank Blanco provided a recap of the Apache Junction Water Festival held on April 25, 2019. The festival had over 60 volunteers for whom he expressed his gratitude for all their assistance in making the Water Festival a success. He thanked the many sponsors for their financial contributions and Village Inn for their food donation to feed all the volunteers. F.District Treasurer Report - Presentation and discussion No report. G.Adjournment Chairperson Serdy adjourned meeting at 6:45p.m. ACCEPTED THIS I DAY OF Jil_jt.SL , 2019, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS 16 DAY OF ,Q.A.AN-R,., 2019. ATTEST: EEN CO District Clerk JEFF SERD Chairperson (f4 P Lf1124 NELLY 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 94'day of /7)al,,;a/Junction, Arizona, held on the 7 'day of 4 ,10 ,' ,_dsfl I further certify that the meeting was duly called and held and thfit a quorum was present. City of Apache Junction, Arizona Page 4 Water Utilities Community Facilities District Meeting Minutes May 7, 2019 Dated this 7 day of 1 1 4 , 17441L/ #HLEEN CANNELLY District Clerk , 2019. City of Apache Junction, Arizona Page 5