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HomeMy WebLinkAbout2018-01-16 WUCFD MINUTESWATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING January 16, 2018 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on January 16, 2018 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 Michael Weyer, Utility Director 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 APPROVAL OF MINUTES OF MEETING OF NOVEMBER 21, 2017 Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 1 of 11 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING January 16, 2018 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on January 16, 2018 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 Michael Weyer, Utility Director 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 APPROVAL OF MINUTES OF MEETING OF NOVEMBER 21, 2017 Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 1 of 11 )Chairperson Serdy called for a motion. Mrs. Evans MOVED THAT THE MINUTES OF NOVEMBER 21, 2017, BE APPROVED. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2018-001, AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF MESA FOR DELIVERY OF TREATED WATER )District Director Frank Blanco briefed the board on the item. Chairperson Serdy asked what was the highest percentage of that water that we used a few years ago when they had to rely on this water compared to our using our own wells.We switched over and this had supplemented those wells.Now we have gone away from this. District Director Frank Blanco stated in 2008 we were taking delivery of about 95% groundwater from wells and about 5% of the Central Arizona Project water.We progressed to where we are now closer to 80% surface water and 20% wells. Chairperson Serdy commented he does not mean that.He means from Mesa.A few years ago we were taking quite a lot from Mesa. District Director Frank Blanco stated all of the surface water we were using, all the Central Arizona Project Water allocation was being treated by the City of Mesa, up until the plant was built in 2016 when we went online.One hundred percent of the Central Arizona Project Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 2 of 11 water that we used came from Mesa.He continued with his briefing. Chairperson Serdy asked if they need to have a vote on that right now.He closed the discussion with no further comments and called for a motion. Mrs. Evans MOVED THAT RESOLUTION NO. 2018-001, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) AUTHORIZING EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF MESA FOR DELIVERY OF TREATED WATER BE APPROVED; AND AND I FURTHER MOVE TO TERMINATE THE 2006 MESA INTERGOVERNMENTAL AGREEMENT EFFECTIVE FEBRUARY 6, 2018, CONTINGENT UPON THE CITY OF MESA'S FINAL EXECUTION OF THE PROPOSED 2018 INTERGOVERNMENTAL AGREEMENT REGARDING TREATED WATER BETWEEN THE CITY OF MESA AND APACHE JUNCTION WATER UTILITIES COMMUNITY FACILTIIES DISTRICT BE APPROVED. SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Vice Chairperson Wilson CHANGE ORDER #3 FOR REVOLUTION INDUSTRIAL, LLC, TO REPLACE RAFTER BEAMS IN BOTH THE NORTH AND SOUTH 500,000 GALLON TANKS AT THE WATER STORAGE SITE AND BOOSTER STATION LOCATED AT 16TH AVENUE AND BUENA VISTA AT AN ADDITIONAL COST OF $70,076.75 Mike Loggins briefed the board on the District Superintendent item. Mrs. Rizzi asked if the picture he just showed was concrete or metal on the left-hand side. Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 3 of 11 District Superintendent Mike Loggins stated that is metal.They sandblast it back to near white so it does not look like metal anymore.It will get the proper mils or roughness to the material so that it will bond correctly. Mrs. Rizzi commented it just looks odd, like concrete. District Superintendent Mike Loggins continued with his briefing. Mrs. Evans asked why they are replacing every other one instead of every one. District Superintendent Mike Loggins stated in order to keep the structure of the tanks still where they are at, they are replacing every other one to start with.They will take every other one down, remove it, put a new one in its place, and then replace every other one after that. They will replace all of them but they take half down to replace with new ones and then take the other half down so we do not have to take off the top of the tank.He continued with his briefing. Chairperson Serdy closed the discussion with no further comments and called for a motion. Mr. Waldron MOVED THAT CHANGE ORDER #3 TO THE REVOLUTION INDUSTRIAL, LLC CONTRACTING AGREEMENT FOR ADDITIONAL SERVICES AND MATERIAL FOR THE TANK COATING PROJECT AT THE WATER STORAGE SITE AND BOOSTER STATION LOCATED AT 16TH AVENUE AND BUENA VISTA AT AN ADDITIONAL COST OF $70,076.75 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 4 of 11 DISTRICT MANAGER REPORT District Manager Bryant Powell introduced Calista Smith, youth advisory council president here on a youth mentoring shadow program through the high school with four or five juniors and seniors mentoring different people in the community.Three have selected our organization: one in IT; one in administration and one in water.He thanked them for their support of the Mesa Intergovernmental Agreement and the change order. Chairperson Serdy commented it would be great to get a report on these five employees to see if they are really doing the job. District Manager Bryant Powell stated they will probably give a report back to their principal and who will report from the school district. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated he attended an Arizona Water luncheon on alternative water supplies where Mike Loggins was the keynote speaker.He requested he give the report tonight. District Superintendent Mike Loggins gave an update on the water system. Mr. Struble asked about the things that were in the water back in August.He asked at what temperature or humidity they start coming back. District Superintendent Mike Loggins stated they came back in June last year.They are looking at temperatures over 100 degrees and daylight of more than 10 to 12 hours each day.The sunlight helps create growth on the algae. Mr. Struble asked if there has been any more.He is starting to research things they could do in the future.He asked if it will be an ongoing problem they have to deal with, Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 5 of 11 District Superintendent Mike Loggins stated it is an ongoing problem.They have talked to the manager of the automatic strainer that is currently in use.They have also talked to other manufacturers that have said instead of just applying their equipment and saying it is going to work, they could have a try it and buy it situation where they would come out and demonstrate it for them to make sure it is going to work for this type of algae out here.That way they would not have to buy something that would have the same thing happen in the end. Hopefully they will be coming in May and implement those so they can treat some of that in June. Chairperson Serdy commented since they are asking questions and they do not often get a chance to talk water with them all together, when Frank was giving his first presentation and we had just opened our plant and we were only at about 50% usage, he asked when it would be time to start talking about another one if all the growth in Superstition Vistas and Lost Dutchman Heights ever happens.They will eventually outgrow it.He asked if this is something that should be on the agenda for twenty years from now so that they could have a plan on the books, following the canal down towards Florence.Eventually Apache Junction and Florence will probably grow together and he wondered if that is something that should be discussed at a future meeting.We will all be gone by then but he would like to get an opinion on that. District Manager Bryant Powell stated from his take, it is something they always need to be talking about.We have put ourselves in a wonderful position for the first 12 square miles at least with 1,000 acre feet purchased from the Gila River Indian Community.We want to keep those relationships super strong.They can talk about it at any time and Frank can give them a report. Chairperson Serdy asked how long it took from the first discussion until the water plant actually got completed. District Superintendent Mike Loggins stated the initial phase from green land to the finished product was about two years, but part of that was planning. Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 6 of 11 Chairperson Serdy commented but they knew it was coming way before that.We knew there was going to be a need. District Superintendent Mike Loggins stated that is correct.He believed that when the water district land was purchased there was already land that came with the water district that was part of that and over time it was moved around planning for this.It was raw land until the decision was made.It took two years from that point of the decision to move forward. District Manager Bryant Powell stated they may as a preamble send to the board the five-year master plan. District Director Frank Blanco stated the master plan update is something they need to be working on.It would take all of that into account.In some cities they create a five-year plan and a ten-year plan.We have elected to benchmark growth and base our capital improvement plan on growth.If the growth does not occur, it does not make sense to put a lot of money into infrastructure because the growth is not there.When we started in 2007 we were on the cusp of explosive growth.There was a big push to build that plant.He believes in retrospect it was a good thing they did not build the plant since they did not have the explosive growth.Now as we start looking at future growth it will depend what the population is at a certain point. At that point they would build and expand and look at getting another facility further south. Chairperson Serdy commented he was thinking when the 24 meets up with the north/south.That is going to be pretty far away and there will not be any infrastructure down there. District Director Frank Blanco stated that is correct.It could be an opportunity for us to build another plant south of us knowing that we have one north and because it is lower gravity by gravity they will be able to get the transmission made and move that water along. Chairperson Serdy commented he did not want to take any more time.He just thought it might be a good time to get that out there. Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 7 of 11 Mr. Waldron asked if the plant that we built was expandable. District Director Frank Blanco stated that is correct. Mr. Waldron commented we are running two units now of four. District Superintendent Mike Loggins stated they are running one unit and can go up to five. Chairperson Serdy commented we are less than 50%. District Director Frank Blanco stated absolutely. District Manager Bryant Powell stated we can expand at that site.His biggest worry over the last 15 years was that they would be working on significant development on the state land. We have yet to see any and we have yet to see what the absorption rate or penetration rate of their residential, commercial and industrial needs are going to be in that area. Until that trigger mechanism hits, it is one of those go or no go kind of things.If they capitalize too soon that would not be good.It is definitely something they want to keep on our radar. District Superintendent Mike Loggins gave an update on the 2018 water festival. Mr. Struble asked if they would be sprayed by the fire engines this year. District Superintendent Mike Loggins stated definitely.If he wants to come out there and stand with them there will be 400 screaming fourth graders and they all run when that water starts coming. Mr. Struble commented he got as far away as he could because he did not want to be around there. Mrs. Rizzi commented and you cannot tell how warm it is. Sometimes it is not too warm. Utility Billing Supervisor Evie McKinney gave an update on the payment portal. Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 8 of 11 DISTRICT TREASURER REPORT District Treasurer Donna Meinerts gave an update on the financial statement. Chairperson Serdy commented this is public knowledge to anyone. District Treasurer Donna Meinerts stated it is. Chairperson Serdy commented other water districts and cities are public.We operate in the black.He asked if every water company operates in the black and how do we do compared to other municipalities. District Treasurer Donna Meinerts stated she has not had the time to take a look at the other water districts throughout the state.For us to be able to operate in the black and manage our money is a tip of our hats to the staff.They are doing an absolutely awesome job.Seeing revenues and expenditures with lines so close and so tight tells her the rates they are charging the customers are not way more than we need.The way we are handling the funds is just right where we want to be. She can do some research with some of the other water companies and water districts to see how they are doing. Chairperson Serdy commented she may not have to.There may be somebody that monitors that, like the corporation commission or somebody. District Manager Bryant Powell stated during the rate study, when we do the public hearing for rates, Frank and his staff provide local, nearby water department rates and how we compare. He thinks that is a constant as well as Arizona Water.We watch those rates because it is very important that we are sensitive to our rate adjustments.He remembers about 10 years ago when this room was full for a proposed 10% to 12% rate change.When asked why so much, the current water director Brian Hall stated they had not had a rate adjustment in 4-6 years.The policy and the practice since then has been to do modest 3%-5% and even 2% changes in the rates.One of the things they may want to engage in is what those rates are.The base rates and connection fee rates are some of the rates related to the water consumption and Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 9 of 11 how they get the water.He is passing this along for new customers.He would love to continue to have public policy discussions and they will be prepared during those public hearings to have data to look at. Chairperson Serdy asked if they can do way better than Flint, Michigan. District Treasurer Donna Meinerts stated absolutely.What Bryant said is a very good point.The comparison is in the rates because any water company or water district needs to operate in the positive.They cannot be going on in the negative.The rate increases are what keeps the district in the positive. Chairperson Serdy commented if they see a company that has really high rates they are probably struggling to be efficient. District Treasurer Donna Meinerts stated it depends on what their overall expenditures are going to be.That is mainly the cost of the water with the other components that Frank would tell you like the electricity and the items that it takes to produce the water. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:37 p.m. ACCEPTED THIS 026--A4 DAY OF Al46445/, 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. aoryei DAY OF r -L-1/e.144-te.y. 'eff SVdy Chairperson Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 10 of 11 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 16th day of January, 2018.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of February, 2018. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of January 16, 2018 Page 11 of 11 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING February 20, 2018 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on February 20, 2018 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 Frank Blanco, District Director Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Connie Chow, District Controller Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Al Bravo, Public Information Officer APPROVAL OF MINUTES OF MEETING OF JANUARY 16, 2018 Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 1 of 8 )Chairperson Serdy called for a motion. Mr. Waldron MOVED THAT THE MINUTES OF JANUARY 16, 2018, BE APPROVED. Mrs. Barker SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT District Director Frank Blanco stated the City of Mesa final intergovernmental agreement is on their agenda for approval on February 26 and no changes are needed.He briefed them on the concepts of the intergovernmental agreement with Salt River Project for the recovery of water storage credits, well lease and water transportation during emergency and unplanned Central Arizona Water Project water outages. Mrs. Barker asked what the cost would be. District Director Frank Blanco stated if we take the entire 120 acre feet per year it would be about $19,500.They have not done any negotiations on the cost; that was the first proposal. District Manager Bryant Powell asked how that number works for their budget. District Director Frank Blanco stated the lease fee for the well is $125 per acre foot.If we recover 10 acre feet it is just ten times 125 which is reasonable.We are not having to drill a new well, we are not having to do anything like that. Basically, we are leasing a facility that is an existing Salt River Project well.They will maintain it.We do not pay for Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 2 of 8 maintenance.We do not pay electrical.We do not pay anything but the $125 per acre foot of the water that we take.We feel it is a reasonable cost.The cost for transportation of the water to get it to the water treatment facility would be $37.50 per acre foot.That includes pumping the well, putting in the canal system, taking it to the Val Vista water treatment facility and Mesa taking delivery of it there. Mrs. Barker asked if he feels it is cost effective. District Director Frank Blanco stated it is certainly more cost effective than the district having to build our own infrastructure to get the water to where we need it.He feels it is reasonable. Mr. Waldron asked if we would pay Mesa to deliver it. District Director Frank Blanco stated we do per the Mesa intergovernmental agreement.Once the water is purified it would be under the other intergovernmental agreement. Mrs. Barker commented that altogether, they are looking at this entire system.We have got this piece in plus the Mesa piece. District Director Frank Blanco stated that is correct. Mrs. Barker asked what the cost is on this altogether. District Director Frank Blanco stated they talked about that at the last meeting and altogether the cost is $650.It is a base fee they would pay Mesa on a monthly basis to have the connection to their facility.Currently it is more than that. The other cost involved is the cost to actually purify the water and that is in the neighborhood of $319 per acre foot.It is costly when you look at it that way.The thing that is really important here is that it is on an emergency basis.It is not something they would be doing on a normal basis.It is not our main water source.It is only for a situation where we might have an emergency where, for example, the Central Arizona Project were to shut down and we could not take delivery of that water and treat it at our own facility.We would use this Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 3 of 8 process to continue receiving Central Arizona Project water during an emergency or during a shortage. Mrs. Barker commented she wanted to make sure she comprehends this.She asked if the district is paying the monthly contract to Mesa regardless. District Director Frank Blanco stated that is correct. Mrs. Barker commented we pay the $650 monthly.This is simply in an emergency situation that the rest of this would take place. District Director Frank Blanco stated that is correct.We pay an administrative cost on this contract and that is the next one he is going to talk about.It is $1,000 per year for them to administer the contract.The other piece we pay when we use the facility.If we lease that well, need that well, then we pay. Otherwise, it is not an ongoing cost that we pay for.That well is per acre foot that they pump.It is the same thing for the transportation costs.It is transportation costs per acre foot. If we do not use any of the water, we do not pay. Chairperson Serdy commented he guessed they were going to finish early tonight so he had some questions.On the pecking order, when he is speaking to Salt River Project, he asked if these are the same people as we deal with for electricity or is it a whole different group. District Director Frank Blanco stated it is the water group.It is a whole different group.It is not the electricity side.He believes they call it the Salt River Valley Water Users Association.Salt River Project is the electric side.They are all under Salt River Project. Chairperson Serdy asked if there is a whole organization behind Central Arizona Project or is that based out of here as well. He asked how they run. District Director Frank Blanco stated Central Arizona Project is the Central Arizona Water Conservation District.It is Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 4 of 8 contracted to the federal government.They are separate from Salt River Project. Chairperson Serdy asked if they are in the valley, also. District Director Frank Blanco stated that is correct.He then continued with his briefing on the agreement. District Superintendent Mike Loggins gave an update on the water system.He commented on the construction going on during normal construction hours up and he has been have relocated the the noise within. had noise decibels east and 84 to the and weekends.The contractor is now caught advised he can no longer do that now.They compressor to the middle of the site to keep Frank tested the noise level and found they at 77 to the north, 75 to the west, 80 to the south. Mrs. Rizzi asked what the noise decibels mean. District Superintendent Mike Loggins stated normal conversation is 65 decibels.City traffic is about 85 decibels.When he was out there talking to the contractor he could talk to him like this and they could still hear each other but there was obviously noise in the background. District Clerk Kathleen Connelly stated their compressor is that quiet. District Superintendent Mike Loggins stated there is noise out there.You can stand on the side of the road and it is 85 so we are working towards that.Inside the tank it is 115 but that is obviously not outside the tank.Jet engines get up to 140 decibels.It obviously grows out there.When they moved it to another location they received another phone call from someone that lives opposite the tank.They really cannot move the air compressor to the west.They are trying to mitigate all the noise that they can and keep it centralized on that side.They would like to be a little quieter out there but, unfortunately, they have some construction going on. Mrs. Rizzi asked what the times are. Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 5 of 8 Mrs. Barker commented it is no more than normal construction noise. District Superintendent Mike Loggins stated that is correct. Mrs. Barker asked when they anticipate it being complete. District Superintendent Mike Loggins stated the contractor has until April 1 to get it completed.That is what they have been explaining to all the customers.Hopefully it gets quieter as some of the processes slow down out there. District Manager Bryant Powell stated he received one of those calls as well.One of the questions was noise.He told the caller they moved it to another area and now they have a complaint from somewhere else.They are trying their best to figure out the best spot.He asked when the hours begin. District Superintendent Mike Loggins stated working hours are from 6 a.m. to 6 p.m.Currently the contractor is starting at daybreak which is about 7:30 a.m. so that is around 7 a.m. to 7:30 a.m. to start and he typically finishes around 5 p.m. to 5:30 p.m.He is definitely staying within those hours.One of the complaints was he was starting really early.The caller was asked what time is too early and responded 9 a.m. Mrs. Rizzi commented he must be a night time employee. District Superintendent Mike Loggins stated hopefully they can resolve some of the issues.They are doing their best to mitigate some of the issues but they do have to finish the project. Mr. Struble commented they have to do it during the wintertime because of the heat. District Superintendent Mike Loggins stated for some of the curing processes for the paint they need to do them during the wintertime.Also, some of their lower demands are during the wintertime.That is when they had to do this project.He then gave a quick update on the water festival for this year. Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 6 of 8 Mrs. Rizzi asked if they would get an automatic email invitation or how else does that work. District Manager Bryant Powell stated definitely. District Superintendent Mike Loggins stated they will get an invitation.He hoped some of them would volunteer.He knows a lot of them have in the past.That will be going out and he will be posting it on some of their sites to get it out to the public. Mrs. Rizzi commented it is a lot of fun and she does not want to miss it. District Superintendent Mike Loggins gave the board an update on the payment portal. District Manager Bryant Powell stated they may remind the firefighters of the festival as that seems to be a big component.He will let them know if he sees any of them and requested the board do the same if they see any board members. It is important to get them prepared.If it is at the last minute it is harder for them. DISTRICT TREASURER REPORT District Superintendent Mike Loggins gave a quick update on the latest financial report. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:20 p.m. ACCEPTED THIS DAY OF /4/e/L.-, 2018, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT,(CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS /-71 4 DAY OF 2018. Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 7 of 8 eff SeUly 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 20th day of February, 2018.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 1st day of March, 2018. 1 7 Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of February 20, 2018 Page 8 of 8 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 1, 2018 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 1, 2018 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 Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Connie Chow, District Controller Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant RESOLUTION NO. 2018-002, DECLARING A PORTION OF THE PUBLIC UTILITY EASEMENT LOCATED AT THE SOUTHEAST Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 1 of 11 CORNER OF OLD WEST HIGHWAY AND WINCHESTER ROAD AS NO LONGER NECESSARY FOR PUBLIC USE AND IS HEREBY EXTINGUISHED )District Director Frank Blanco briefed the board on the item. Mrs. Rizzi asked which side the owner has, the apartments or the other side. District Director Frank Blanco stated it is not the owner of the RV park down to the south.It is a different owner. Chairperson Serdy closed the discussion with no further comments and called for a motion. Mr. Waldron MOVED THAT RESOLUTION NO. 2018-002, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) DECLARING A PORTION OF THE PUBLIC UTILITY EASEMENT LOCATED AT THE SOUTHEAST CORNER OF OLD WEST HIGHWAY AND WINCHESTER ROAD IS NO LONGER NECESSARY FOR PUBLIC USE AND IS HEREBY EXTINGUISHED, BE APPROVED. Vice Chairperson Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. RESOLUTION NO. 2018-003, DECLARING A PORTION OF THE PUBLIC UTILITY EASEMENT LOCATED AT 2225 NORTH CORTEZ ROAD AS NO LONGER NECESSARY FOR PUBLIC USE AND IS HEREBY EXTINGUISHED )District Director Frank Blanco briefed the board on the item. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 2 of 11 Chairperson Serdy asked if anyone has ever been sorry we extinguished an easement of any kind. District Legal Counsel Joel Stern stated he has been here 20 years and the only person who complained was Giao, who complained about a lot of things.Ron Grittman was, too, but his position was do not give up too much easement.We are in the water area.They have not done too many of these public utility ones.The answer would be no for utility purposes. Chairperson Serdy closed the discussion with no further comments and called for a motion. Mrs. Evans MOVED THAT RESOLUTION NO. 2018-003, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF APACHE JUNCTION, ARIZONA) DECLARING A PORTION OF THE PUBLIC UTILITY EASEMENT LOCATED AT 2225 NORTH CORTEZ ROAD IS NO LONGER NECESSARY FOR PUBLIC USE AND IS HEREBY EXTINGUISHED, BE APPROVED. Vice Chairperson Wilson SECONDED THE MOTION. VOTE: Unanimous. The motion carried. DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2018-2019 TO INCLUDE PROPOSED RATES, FEES AND CHANGES APPLICABLE DURING FY 2018-2019 AND CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES )District Superintendent Mike Loggins briefed the board on the resources, expenditures and water rates, including water rates in various places around the country. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 3 of 11 Chairperson Serdy commented the water rate for Seattle is very strange as they have no shortage of rain up there. District Superintendent Mike Loggins stated that is correct.In their study across Arizona the district has one of the lower rates.We conserve the water as we are in the desert as opposed to the Midwest.He briefed the board on the proposed water rates. Mrs. Rizzi asked if they increased the water rates last year.She asked how much the increase was last year. District Superintendent Mike Loggins stated it was the same amount last year.The recommendation from the rate study was between 3-5% every year. They are staying with that to give slow, incremental increases rather than getting a 10% or 20% increase like some of the other utilities have done.He continued with his briefing.They have increased the hook-up fees to pay for new developments to build additional infrastructure. Mr. Waldron asked about the subdivisions that are being built now.He asked if they will be at the increased rate if they build a house after July 1. District Superintendent Mike Loggins stated the new rate will go into effect October 1, 2018. Mrs. Evans asked why a manufactured home is less than a single-family home for the same work. District Superintendent Mike Loggins stated they base this on how much water usage there is in that facility. Mrs. Evans commented a two- bedroom or a four -bedroom anything has the same capacity. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 4 of 11 District Superintendent Mike Loggins stated he would agree if they were the same capacity but when the engineer did the study for them they were assuming that they would have less fixtures inside a manufactured home. Mrs. Evans commented you know what happens when you assume something. District Superintendent Mike Loggins stated they have to come up with a dollar amount. Mrs. Evans commented it should be exactly the same as a single-family. District Superintendent Mike Loggins stated if that is something she would like them to look at they can definitely do that so it is the same as a single- family. Mrs. Evans commented absolutely.A dwelling is a dwelling unless it is multi -family and that has a different capacity to it.They are typically one meter, or three meters or four meters.She asked if each dwelling would have to pay the $42.20. District Superintendent Mike Loggins stated each dwelling unit would have to pay the $42.20 in a multi -family. Mrs. Evans commented it makes absolutely no sense to her whatsoever.A house is a house. District Superintendent Mike Loggins stated they can definitely go back and review how they came up with that and see if they can adjust it for next year. Mr. Waldron commented he thinks it is a good idea. Mr. Struble commented for an apartment building that has 10 apartments, they would be charged $44,000 if he understands this correctly. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 5 of 11 District Superintendent Mike Loggins stated that is correct.He continued with his briefing on the rates. District Director Frank Blanco briefed the board on the classification and compensation plans. Chairperson Serdy asked Frank what his starting pay was for his first ever water job. District Director Frank Blanco stated he started in 1985.He was making more than a teacher. Chairperson Serdy commented he did not start at the top. District Director Frank Blanco stated he was an engineering design technician.He was out in the field taking measurements of static water levels and looking at pump efficiencies and doing things of that nature. He did a lot of work out in the field and later a lot of work in the office working on contracts, contract administration, water rights and things of that nature.He did get a chance to experience some real work.He continued with his briefing on the budget dates. Mr. Struble asked if he would be able to show the board or have available to the board in two weeks the revenue they are expecting from each of those line items, not just the rate but the actual revenue, so they can see what that looks like. District Director Frank Blanco stated he will ask for some help from finance on that. He asked him to repeat the question. Mr. Struble commented he could not remember if they got those or not last year. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 6 of 11 District Manager Bryant Powell stated they can get those for them. Mr. Struble commented they are kind of landlocked and they have a lot of empty space within our service area.He asked if they have a projection, aside from south of the 60, of what kind of growth we might have in the next five years just from infill and that type of thing.He asked if there is any way to estimate that, such as a crystal ball. District Superintendent Mike Loggins stated they will leave that up to the city's development services department.They will let them know how they are feeling and what is going on out there.They had thought the state land would have been developed by now.They do not have a crystal ball that will say they are going to have another $20,000 or million dollars in revenue next year and it never comes through.They have to base it off the current customers and what increases are there.It is kind of conservative for right now.As they see things start stepping up and development coming, they will eventually also ramp that up. District Director Frank Blanco stated they are also working with the city on the master plan.They had a kick off meeting today.He thinks he heard a projection of about 1% for their estimate on population growth. District Legal Counsel Joel Stern stated he thinks that was correct.There is approximately 40,000 inside the city limits now.He had asked if they thought there might be another 10,000 people in the next ten years and he did not get a good answer from staff. Assistant City Manager Matt Busby stated it all depends. District Legal Counsel Joel Stern stated it does depend because the general plan has to be done every ten years.For water purposes, it would be nice to know what the crystal ball is but because of state land they will not get a good answer. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 7 of 11 Mr. Struble commented he understands that. District Legal Counsel Joel Stern stated first he will not like the answer he is going to get and then it will not be a good answer. Mr. Struble asked if there is a reduction in the margin as we grow in the number of people that we serve.He believes he said last time that we were at 4,500 connections.If we go up to 9,000 will that mean in the industry that there is a lower margin so the expenses would obviously not double according to that.He asked if there is an industry average.He wanted to know if they could serve 9,000 without double the expense. District Director Frank Blanco stated the solution to that is master planning and making sure the district is at the appropriate level as to our rates. They would not double the rates because they are doubling the population.That is part of the reason we do collect things like water resource acquisition fees and other types of fees that we can use to build an infrastructure so that we are able to accommodate growth. Mr. Struble asked how far ahead we have to do our master plan.He asked if we already have infrastructure down there, if they get someone in here and they are going to develop down south of the 60 down to Guadalupe or some place and how long would it take to get that infrastructure in place. District Superintendent Mike Loggins stated currently they do have some infrastructure dependent upon what size development would come in there.They may need to add additional infrastructure.Developers have also been asking how much it would cost to add another module to the plant as it is expandable.They have been asking how much it would cost to install a larger line to get down to their development at that point in time.They are setting themselves up for future development but they cannot put anything in until they actually start seeing it happen. Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 8 of 11 District Manager Bryant Powell stated they have had a hurry up and wait kind of approach for planning and getting prepared for a decade.They have four subdivisions that average about 57 to 70 homes.The consumption rate will be fairly rapid over the next year to two years. After that they will hope to do all they can to have discussions with state land department and the development community. Chairperson Serdy asked if there are any big expenses coming in the far to near future that they need to know about.They just redid the big tank.He asked if there is anything 3 or 4 years out or are they looking pretty good right now. District Director Frank Blanco commented they will continue to do a moderate capital improvement plan so that they are able to afford what we need to build for infrastructure.They do not foresee anything real large but they are working on getting some estimates on if they do see a lot of growth and need to double the capacity they need to see what that is going to cost so they are prepared to work with developers to make that happen. District Superintendent Mike Loggins stated the only major project they may have coming up in the near future is the regional recharge facility they may have out here in Apache Junction.They are still in the initial planning phases of that.It could be 2 or 3 years out.They are starting to talk to different entities out here.They met again last month and now have State Land and the Flood District involved.They are gaining speed and more people as they move forward.It will hopefully not be a small project but be a regional solution out here. Mr. Waldron asked how long it takes to get a new module on line. District Director Frank Blanco stated it took about a year to build the plant so it would be about the same time frame or really less. DISTRICT MANAGER REPORT Water Utilities COmmunity Facilities Distridt Meeting Minutes .of April 17, 2018. Page 9 of 11 None. DISTRICT DIRECTOR REPORT None. DISTRICT TREASURER REPORT None. ADJOURNMENT ) Chairperson Serdy adjourned the meeting at 6:32 p.m. ACCEPTED THIS J i DAY OF MO/, 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. ATTEST: Kathleen Connelly District Clerk DAY OF C ,1.0-1, eff SeWy 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 Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 10 of 11 Junction, Arizona, held on the 1st day of May, 2018.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of May, 2018. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of April 17, 2018 Page 11 of 11 WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA REGULAR MEETING May 15, 2018 The regular meeting of the District Board of the Water Utilities Community Facilities District, City of Apache Junction, Arizona, was held on May 15, 2018 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 Frank Blanco, District Director Donna Meinerts, District Treasurer Matt Busby, Assistant City Manager Michael Loggins, District Superintendent Connie Chow, District Controller Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant APPROVAL OF MINUTES OF MEETING OF APRIL 17, 2018 Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 1 of 8 5 )Chairperson Serdy called for a motion. Mrs. Barker MOVED THAT THE MINUTES OF APRIL 17, 2018 BE APPROVED. Mrs. Evans SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISCUSSION ON PROPOSED DISTRICT BUDGET FOR FISCAL YEAR 2018-2019 TO INCLUDE PROPOSED RATES, FEES AND CHARGES APPLICABLE DURING FY 2018-2019 AND CLASSIFICATION AND COMPENSATION PLAN FOR DISTRICT EMPLOYEES )District Director Frank Blanco briefed the board on the budget. District Superintendent Mike Loggins briefed the board on the rate comparisons. Mrs. Rizzi asked if he sees the need over the next few years to continue these increases in the base rates.Frank had said to balance the cost of the water delivery. District Superintendent Mike Loggins stated they will keep balancing this over time.They had a consultant do a study for the district about 5 to 8 years ago.They recommended raising the rates 3-5% each year.We compare the rates to other utilities in the area and it is based on our costs and the repairs that we have to do and also to make sure we can keep that rate as low as possible but also maintain our services at the same time. Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 2 of 8 Mrs. Rizzi commented that is what she was getting at.Each year they can expect to see this incremental increase instead of.making one big jump. District Superintendent Mike Loggins stated that is correct. District Manager Bryant Powell stated he strongly recommends continuing that.He remembered a year where this room was packed because the water board passed a 12% increase after not doing anything for four or five years.The base rate and consumption rate will be viewed each time separately as they are different costs for a better need to change.There will be some changes all the time because we are always having cost changes as well. District Superintendent Mike Loggins stated they are trying to manage those with what is going up, such as the base rate, electricity or water prices. They see which ones they need to raise in order to keep our prices comparable to other cities yet still maintain the system. Mrs. Rizzi commented just so our consumers know what to expect. Mrs. Evans asked what number of customers they have in the county island areas.She asked if they have those numbers versus the city numbers. District Superintendent Mike Loggins stated they do.They have those as a separate rate in the billing software.They have approximately 600 customers that are in the county which equals out to about 15% of our customer base. Mrs. Evans asked if that is mainly, any across Meridian or just the county islands within our own city limits. District Superintendent Mike Loggins stated they are county islands within our city limits that are in the water district.There are some trailer parks Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 3 of 8 and subdivisions in Pinal County that have not been incorporated yet.He continued with the briefing on the water rates. Mr. Struble commented that is one of those things where if they were to annex into the city they would drop their rate down because they are part of the city. District Superintendent Mike Loggins stated that is correct.He continued with his briefing on the water rates, adding a new position, and the classification and compensation plans. RESOLUTION NO. 2018-004, 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 2018-2019", "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT COMPENSATION PLAN FOR FISCAL YEAR 2018-2019" AND "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FLAT AND HOURLY SCHEDULE FOR FISCAL YEAR 2018-2019") Blanco briefed the board on the item District Director Frank Chairperson Serdy called for any discussion.There being no discussion, he called for a motion. Mrs. Rizzi MOVED THAT RESOLUTION NO. 2018-004, 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 2018-2019"; "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 4 of 8 COMPENSATION PLAN FOR FISCAL YEAR 2018-2019" AND "APACHE JUNCTION WATER UTILITIES COMMUNITY FACILITIES DISTRICT FLAT AND HOURLY SCHEDULE FOR FISCAL YEAR 2018-2019" BE APPROVED. Vice Chairperson Wilson SECONDED THE MOTION. VOTE:Unanimous. The motion carried. PUBLIC HEARING ON PROPOSED BUDGET AND RATE SCHEDULES FOR FISCAL YEAR 2018-2019 Blanco briefed the board on the item. District Director Frank 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 as it was a public hearing only with no action needed and moved on to the next item. RESOLUTION NO. 2018-005, ADOPTING THE PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING JUNE 30, 2019; ADOPTING PROPOSED RATES, FEES, DEPOSITS, WATER RESOURCE ACQUISITION FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING ON JUNE 30, 2019; ESTABLISHING A PUBLIC HEARING ON THE PROPOSED BUDGET AND DIRECTING STAFF TO SOLICIT COMMENTS for a motion. Chairperson Serdy called Mrs. Barker MOVED THAT RESOLUTION NO. 2018-005, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT (CITY OF Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 5 of 8 APACHE JUNCTION, ARIZONA) PURSUANT TO A.R.S. § 48-716, ADOPTING A PROPOSED BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING ON JUNE 30, 2019; ADOPTING PROPOSED RATES, FEES, DEPOSITS, WATER RESOURCE ACQUISITION FEES AND CHARGES APPLICABLE FOR THE FISCAL YEAR BEGINNING JULY 1, 2018 AND ENDING ON JUNE 30, 2019; 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 I FURTHER MOVE THE PUBLIC HEARING FOR FINAL BUDGET ADOPTION BE HELD ON JUNE 19, 2018 AT 6:00 PM IN THE APACHE JUNCTION CITY COUNCIL CHAMBERS, 300 EAST SUPERSTITION BOULEVARD, APACHE JUNCTION, ARIZONA. Mrs. Rizzi SECONDED THE MOTION. VOTE:Unanimous. The motion carried. DISTRICT MANAGER REPORT None. DISTRICT DIRECTOR REPORT Water Superintendent Mike Loggins gave an update on the plant computer control system. Mrs. Rizzi commented the agency it is being reported to will not work with us.She asked if they will look at the facts and say okay and go easy or is it just straight out that they missed reports. Water Superintendent Mike Loggins stated they have been in contact with them since this happened.They have sent in 10 reports but, unfortunately, they have rules they have to follow since we did not turn it in by the 10th.They cannot do much other than say it was a missed monitoring violation.As soon as they can repair the system or get the information to them that Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 6 of 8 will go away.At this time we have a missed monitoring violation.The water quality is fine, they just have a problem with the reporting status. Mrs. Barker asked if they have a backup for that system. Water Superintendent Mike Loggins stated currently there is not. They believed there was and that is another thing they are working on.They met with four different programmers today to figure out why there was no backup system in place, why they cannot recover that and what they can do if they can or cannot recover it.They are looking into how they do a backup system so they do not have this happen again.It could be another server or external hard drive or have a consultant come in and check it each month to see if it is still there.It depends on the recommendation. District Director Frank Blanco stated the reporting is not the monitoring.They have real time monitoring in place.They continuously monitor the information to make sure the process is working right and we have safe drinking water.The reporting piece is not what we are able to do at this time. Water Superintendent Mike Loggins continued with his briefing. DISTRICT TREASURER REPORT District Treasurer Donna Meinerts gave the board an update on the monthly expenditure report. ADJOURNMENT the meeting at 6:27 p.m. ACCEPTED THIS ) Chairperson Serdy adjourned .DAY OF L./2 -24...4e—, 2018, BY THE CHAIRPERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS //972 DAY OF \;7; :delAe 2018. Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 7 of 8 Jef Flierdy 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 15th day of May, 2018.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 5th day of June, 2018. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of May 15, 2018 Page 8 of 8 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, June 19, 2018 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, June 19, 2018 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 Vice Chairperson Wilson called the meeting to order at 6:00pm. B.Roll Call Present Excused 6 -Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble, and Board Member Waldron 1 -Chairperson Serdy Staff in attendance: Bryant Powell, District Manager Matt Busby, Assistant City Manager Kathy Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Mike Loggins, District Superintendent Donna Meinerts, District Treasurer Connie Chow, District Controller Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Al Bravo, Public Information Officer C.Agenda Items 1.18-283 Approval of minutes of meeting of May 1, 2018 and May 15, 2018. Yes:6 -Vice Chair Wilson, Board Member Barker,Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes June 19, 2018 Excused:1 -Chairperson Serdy Board member Barker made a motion to approve the minutes of May 1, 2018 and May 15, 2018. Board member Waldron seconded. 2.18-284 Discussion and consideration of Resolution No. 2018-006, declaring a portion of the public utility easement located at 2081 South Hilton Road, Apache Junction, Arizona is no longer necessary for public use as public utility easement and is hereby extinguished. Yes:6 -Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 Excused:1 -Chairperson Serdy Board member Barker made a motion that Resolution No. 2018-006, declaring that a portion of the public utility easement located at 2081 S. Hilton Road, Apache Junction, Arizona is no longer necessary for public use and is hereby extinguished be approved. Board member Rizzi seconded. 3.18-285 Yes: No: Excused: Discussion and consideration of Resolution No. 2018-007, declaring a portion of the public utility easement located at the east 33.00 feet of Idaho Creek Villas Phase 3, Apache Junction, Arizona is no longer necessary for public use as public utility easement and is hereby extinguished. 6 -Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron 1 -Chairperson Serdy Board member Waldron made a motion that Resolution No. 2018-007, declaring that a portion of the public utility easement located at the East 33.00 feet of Idaho Creek Villas Phase 3, Apache Junction, Arizona is no longer necessary for public use and is hereby extinguished be approved. Board member Rizzi seconded. 4.18-286 Discussion on proposed final budget and rate schedules for fiscal year 2018-2019. District Directer Frank Blanco discussed the proposed final budget and rate schedule for fiscal year 2018-2019. 5.18-287 Public hearing on proposed final budget and rate schedules for Fiscal Year 2018-2019. The Public Hearing was held. No members of the community spoke in favor or against the proposed final budget and rate schedules for fiscal year 2018-2019. 6.18-288 Consideration of Resolution No. 2018-008, adopting estimates of expenditures by the Water Utilities Community Facilities District (City of Apache Junction, Arizona), for Fiscal Year beginning July 1, 2018 and ending on June 30, 2019; declaring that such action shall establish the budget for the Water Utilities Community Facilities District (City of Apache Junction, Arizona) for Fiscal Year 2018-2019. City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes June 19, 2018 Yes:6 -Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 Excused:1 -_Chairperson Serdy Board member Rizzi moved that Resolution No. 2018-008 adopting estimates of expenditures by the Water Utilities Community Facilities District, for fiscal year beginning July 1, 2018 and ending June 30, 2019; declaring that such action shall establish the budget for the Water Utilities Community Facilities District for fiscal year 2018-2019 be approved. Board member Waldron seconded. 7.18-289 Consideration of Resolution No. 2018-009, re -adopting all existing rates, user fees and charges for Fiscal Year 2018-2019, including new rates for monthly base service charges inside and outside city limits, water consumption rate per 1,000 gallons outside city limits, fire line detection service fees, residential - service and meter installation fees, system connection fees, standpipes, and fire hydrant meters;and establishing an effective date. Yes:6 -Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 Excused:1 -Chairperson Serdy Board member Barker made a motion that Resolution No. 2018-009, re -adopting all existing rates, user fees, and charges for fiscal year 2018-2019, including new rates for monthly base service charges inside and outside city limits, water consumption rate per 1,000 gallons outside city limits, fire line detection service fees, residential service and meter installation fees, system connection fees, standpipes and fire hydrant meters; and establishing an effective date be approved. Board member Rizzi seconded. D.District Manager Report None. E.District Director Report - Presentation and discussion of the following items: 8.18-290 Water System Update District Director Frank Blanco and District Superintendent Mike Loggins presented an update on the water system. F.District Treasurer Report - Presentation and discussion None. G.Adjournment Vice Chairperson Wilson adjourned the meeting at 6:29pm. City of Apache Junction, Arizona Page 3 Water Utilities Community Facilities District Meeting Minutes June 19, 2018 ACCEPTED THIS h i-A DAY OF ,2018, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE ATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS A C A DAY OF—Cr', 2018. ATTEST: JEFF SERDY Chairperson 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 June, 2018.I further certify that the meeting was duly called and held and that a quorum was present. Dated this /7 Z,-,day of "S-79 -&-172_,2018. % 6 1 ,e--60-74--• KATHI FFN MI\INFI I YKATHLEEN CONNELLY District Clerk 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, September 18, 2018 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, September 18, 2018 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 City Manager Kathy Connelly, District Clerk Joel Stern, District Legal Counsel Frank Blanco, District Director Mike Loggins, District Superintendent Connie Chow, District Treasurer Evie McKinney, Utility Billing Supervisor Al Bravo, Public Information Officer Present C.Agenda Items 7 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble, and Board Member Waldron 1.18-403 Approval of minutes of meeting of June 19, 2018. Board member Barker made a motion to approve the minutes of June 19, 2018. Board member Waldron seconded. Yes:7 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes September 18, 2018 2.18-404 Presentation, discussion and consideration for ratification of sole source purchase order number 2018-002 for Loftin Equipment Company to install an emergency Kohler Power Systems Outdoor Diesel Generator at the booster station #2 located at 575 E. Baseline Avenue in the amount of $133,262.64. Board member Waldron made a motion for the ratification of sole source purchase order 2018-002 between Apache Junction Water Utilities Community Facilities District and Loftin Equipment Company to install and emergency Kohler Power Systems outdoor diesel generator at 575 E. Baseline Avenue in the amount of $133,262.64 be approved. Vice Chair Wilson seconded. Yes:7 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 3.18-405 Presentation, discussion and consideration for ratification of sole source purchase order number 2018-003 for Evoqua Water Technologies to install a Millennium III T25 -Auto chlorine dioxide generator at the Water Treatment plant located at 4850 S. Ironwood Dr. in the amount of $142,480.00. Board member Barker made a motion for the ratification of sole source purchase order 2018-003 between Apache Junction Water Utilities Community Facilities District and Evoqua Water Technologies to install a Millennium Ill T -25 -Auto chloride dioxide generator at the Water Treatment Plant located at 4850 S. Ironwood Drive in the amount of $142,480.00 be approved. Board member Struble seconded. Yes:7 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 4.18-406 Presentation, discussion and consideration for ratification of a construction contract with Revolution Industrial, LLC. for coating the failed interior coating at booster station #2, 1 million gallon tank located at 575 E. Baseline Avenue in the amount of $133,860.71 plus 10% for contingencies in the amount of $13,386.07, for a total not to exceed $147,246.78. Board member Evan made a motion for the ratification of the construction contract between Apache Junction Water Utilities Community Facilities District and Revolution Industrial, LLC. for coating the failed interior coating at Booster Station # 2, 1 million gallon tank located at 575 E. Baseline Avenue in the amount of $133,860.71 plus 10% for contingencies in the amount of $13,386.07 for a total mount not to exceed $147,246.78 be approved. Board member Rizzi seconded. Yes:7 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Rizzi, Board Member Struble and Board Member Waldron No:0 D.District Manager Report None. E.District Director Report - Presentation and discussion of the following items: City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes September 18, 2018 5.18-407 Salt River Project Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. District Director Frank Blanco presented an update on the Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. 6.18-408 Water Quality Update District Director Frank Blanco presented an update on the water quality noting the availability of the 2017 Consumer Confidence Report posted on the Water District's website and in a hard copy version. 7.18-409 Regional Water Reclamation Project District Superintendent Mike Loggins presented an update on the Regional Water Reclamation Project. 8.18-410 Water System Update District Superintendent Mike Loggins presented an update on the water system including the approved rate increases that will take effect October 1, 2018. F.District Treasurer Report - Presentation and discussion None. G.Adjournment Board member Barker adjourned the meeting at 6:33pm. City of Apache Junction, Arizona Page 3 Water Utilities Community Facilities District Meeting Minutes September 18, 2018 ACCEPTED THIS / 6 11-DAY OF AND-Ntl 71 f2--, 2018, 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 i\Jov ivuS--, 2018. JEFF SER Chairpersd ATTEST: 7z zw 4 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 Cpmmunity Facilitie Pis of the„?.City of Apache Junction, Arizona, held on the /(9777 day of , I further certify that the meeting was duly called and held d that a quorum was present. - Dated this _ZZ:21: Z _day of P---,716 V , 2018. KATHLEEN CONNELLY District Clerk 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, November 20, 2018 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, November 20, 2018 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 6:00p.m. EL Roll Call Staff in attendance Bryant Powell, District Manager Matt Busby, Assistant City Manager Anna McCray, Assistant to City Manager Joel Stem, District Legal Counsel Frank Blanco, District Director Mike Loggins, District Superintendent Donna Meinerts, District Treasurer Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Present 5 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Struble, and Board Member Waldron Excused 2 -Board Member Evans, and Board Member Rizzi C.Agenda Items 1.18-490 Approval of minutes of meeting of September 18, 2018. Board member Waldron made a motion to approve the minutes of September 18, 2018. Board member Wilson seconded. Yes:5 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Struble and Board Member Waldron City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes November 20, 2018 No:0 Excused:2 -Board Member Evans and Board Member Rizzi 2.18-491 Discussion and consideration of Resolution No. 2018-037, declaring a portion of the public utility easement located at 1229 North Acacia Road, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Barker made a motion that Resolution 2018-037, declaring a portion of the public utility easement located at 1229 North Acacia Road, Apache Junction, Arizona is no longer necessary for public use and is hereby extinguished be approved. Board member Waldron seconded. Yes:5-Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Struble and Board Member Waldron No:0 Excused:2 -Board Member Evans and Board Member Rizzi D.District Manager Report None. E.District Director Report - Presentation and discussion of the following items: 3.18-492 Salt River Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. District Director Frank Blanco presented an update on the Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. Draft Intergovernmental Agreement under final review by Salt River Project Water Contracts Attorney's Office. 4.18-493 Steel Tank Coating Update District Superintendent Mike Loggins presented an update on the Steel Tank Coating. Tank coating has been completed and the air intake fan still needs to be installed. 5.18-494 Regional Water Recharge Project Update District Superintendent Mike Loggins presented an update on the Regional Water Recharge Project. Clear Creek and Associates are finishing up final report by the end of November 2018. 6.18-495 Well #6 pump replacement District Superintendent Mike Loggins presented an update on the Well 6 pump replacement. Contractor is scheduled to pull the Well 6 pump the first week of December. 7.18-496 Water Quality Update District Superintendent Mike Loggins presented an update on the Water Quality. In the fourth quarter there was a Total Trihalomethane (TTHM) violation which required public notification. Notifications were mailed out to all customers and posted on the Water District website. City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes November 20, 2018 8.18-497 Water System Update District Superintendent Mike Loggins presented an update on the Water System. Leased strainer currently being used at the Superstition Area Water Treatment Plant has been purchased from Fluid Engineering. Well 6 / Booster Station 2 generator has been ordered. Chlorine Dioxide unit for the Superstition Area Water Treatment Plant has been ordered to help with TTHM levels. Air blower system for Booster Station 2 steel tank has been ordered. F.District Treasurer Report - Presentation and discussion District Treasurer Donna Meinerts briefed the board on the monthly financial statement that goes through the month of October. G.Adjournment Chairperson Serdy adjourned meeting at 6:24p.m. ACCEPTED THIS /eFA DAY OF /.1,--2-1-2-"", 2018, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS / Z DAY O F S(--'1 •71- /, 2018. ATTEST: KATHLEEN CONNELLY District Clerk JEFF WADY 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 istrict of the City of Apache Junction, Arizona, held on the 4.2e?7,-7 day of /-Ye—ne—‘1--r----,6.a2t97.F I further certify that the meeting was duly called and held and that a quorum was present. Dated this 3 , 7 7 day of / i d , 2018. City of Apache Junction, Arizona Page 3 Water Utilities Community Facilities District Meeting Minutes November 20, 2018 KATHLEEN CONNELLY District Clerk 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.aiwaterdistrict.org P: (480) 982-6030 Tuesday, December 18, 2018 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, December 18, 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 Joel Stem, District Legal Counsel Frank Blanco, District Director Mike Loggins, District Superintendent Donna Meinerts, District Treasurer Connie Chow, District Controller Evie McKinney, Utility Billing Supervisor Rita Vineyard, Administrative Assistant Al Bravo, Public Information Officer Present Absent C.Agenda Items 1.18-565 6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble, and Board Member Waldron 1 -Board Member Rizzi Approval of minutes of meeting of November 20, 2018. •Board member Evans made a motion to approve the minutes of November 20, 2018. Board member Waldron seconded. Yes:6-Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Waldron City of Apache Junction, Arizona Page 1 Water Utilities Community Facilities District Meeting Minutes December 18, 2018 No:0 Absent: 2.18-566 1 -Board Member Rizzi Discussion and consideration of Resolution No. 2018-044 declaring Resolution No. 2018-037, a utility easement extinguishment request and its attachments are rescinded, null and void. Board member Waldron made a motion that Resolution 2018-044, declaring Resolution No. 2018-037, a utility easement extinguishment request and its attachments are rescinded, null and void. Board member Evans seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Waldron No:0 Absent:1 -Board Member Rizzi 3.18-567 Discussion and consideration of Resolution No. 2018-039, declaring a portion of the public utility easement located at 1229 North Acacia Road, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Evans made a motion that Resolution No. 2018-039, declaring a portion of the public utility easement located at 1229 North Acacia Road, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Waldron seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Waldron No:0 Absent:1 -Board Member Rizzi 4.18-568 Discussion and consideration of Resolution No. 2018-040, declaring a portion of the public utility easement located at 2040 South Goldfield Road, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Waldron made a motion that Resolution No. 2018-040, declaring a portion of the public utility easement located at 2040 South Goldfield Road, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Evans seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Waldron No:0 Absent:1 -Board Member Rizzi City of Apache Junction, Arizona Page 2 Water Utilities Community Facilities District Meeting Minutes December 18, 2018 5.18-569 Discussion and consideration of Resolution No. 2018-041, declaring a portion of the public utility easement located at 3710 South Goldfield Road, Lot 1108/892, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Waldron made a motion that Resolution No. 2018-041, declaring a portion of the public utility easement located at 3710 South Goldfield Road, Lot 1108/892, Apache Junction, Arizona is no longer necessary for public use as a public utility easement and is hereby extinguished. Board member Evans seconded. Yes:6 -Chairperson Serdy, Vice Chair Wilson, Board Member Barker, Board Member Evans, Board Member Struble and Board Member Waldron No:0 Absent:1 -Board Member Rizzi D.District Manager Report E.District Director Report - Presentation and discussion of the following items: 6.18-570 Salt River Project Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. District Director Frank Blanco presented an update on the Intergovernmental Agreement to use Salt River Project wells to recover long term storage credits. The Intergovernmental Agreement was received on December 7, 2019 from the Salt River Project Water Contracts Attorney's Office and is under final review by the Water District and the District Legal Counsel. 7.18-572 Regional Water Recharge Project Update District Superintendent Mike Loggins presented an update on the Regional Water Recharge Project Clear Creek and Associates are finishing up final report. Next meeting scheduled for January 2019 to discuss results of the study. 8.18-573 Well #6 pump replacement Update District Superintendent Mike Loggins presented an update on the Well #6 pump replacement Existing pump and motor have been pulled, 730 feet of column pipe, tube and shaft will need to be replaced. A new pump has been ordered and motor is being rebuilt 9.18-574 Water System Update District Superintendent Mike Loggins presented an update on the Water System. Arizona Department of Environmental Quality was out to do an analysis of the system and site inspections and no major deficiencies were reported. Superstition Area Water Plant is running well for this time of year. Well #5 has lost some production over the past six month and will need to have the pump and motor replaced before the Central Arizona Project shut down in November of 2019 for 6-8 weeks. Board member Struble inquired about the high Total Trihalomethane (TTHM) levels that were reported during the November 2018 meeting and if they were back in compliance. District Superintendent Mike Loggins explained that samples are taken quarterly and next samples are due January 12, 2019. City of Apache Junction, Arizona Page 3 Water Utilities Community Facilities Meeting Minutes December 18, 2018 District F.District Treasurer Report - Presentation and discussion District Treasurer Donna Meinerts briefed the board on the monthly financial statement that goes through the month of November. G.Adjournment Chairperson Serdy adjourned meeting at 6:20p.m. ACCEPTED THIS / 9 DAY OF /.--a)-2./..?"7 , 2019, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE WATER UTILIT(ES COMMUNITY FACILITIES DISTRICT, (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS / "-A DAY OF relYZZAk , 2019. JEFF 5/WY 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 C mmunity Faciliti9s District of the City of Apache ...,, Junction, Arizona, held on the /ck/ii day of (,),,,1.-., I further certify that the meeting was duly called and held and that a quorum was present. Dated this / 5 -71, 1 day of KATHLEEN CONNELLY District Clerk 2019. City of Apache Junction, Arizona Page 4