Loading...
HomeMy WebLinkAbout1997-03-31 BOA MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION, ARIZONA MARCH 31, 1997 - 6:00 P.M. MEETING MINUTES BOARD OF DIRECTORS ROLL CALL: Chairperson Douglas Coleman Vice Chairperson Patricia Richmond Mrs.Robin Barker Mr.Joe Durbala Ms.Carol Urich Mr.Keith Hendricks Mrs.Anne Surra 1. 2. 3. Others Present: Curtis Shook,District Manager Kathleen Connelly,District Clerk George Hoffman,Asst.City Manager Doug Dobson,District Operating Mgr. Keith Lewis,District Treasurer Bill Farrell,District Counsel R.E.Eck.Board of Director -Elect Virginia McClain,Board of Director- Elect Call to order. Roll call. Approval of minutes of March 3,1997. Mrs.Barker moved to approve the minutes of the March 3,1997,meeting.Vice Chairperson Richmond seconded the motion.The vote was unanimous. 4.Discussion on and acknowledgement of receipt of Rate Study and Audit Report. District Manager Curtis Shook briefed the board on the item.He stated they are now looking at trends and summarizing the pros over the next week or two.He stated the utility is very healthy at this point.The district treasurer will talk about the cash flows,but the rate study shows the rates are sufficient for the depreciation to be built in and to provide $50.000 in annual funds for ongoing capital improvements.He stated the board should remember they are deferring expenses with personnel at this time as city personnel is directly overseeing the management.As more customers are added, additional meter readers and personnel will be needed. Ms Urich moved to acknowledge receipt of the rate study and audit report.Vice Chairperson Richmond seconded the motion.The motion passed unanimously. 5.Discussion and action on final payment to Beeman Drilling for drilling of well. District Operating Manager Doug Dobson briefed the board on this item.The original agreement was for 1200 feet,the actual depth drilled was 1325 feet. Water Utilities Community Facilities District Meeting Minutes of March 31,1997 Page 1 of 5 The cost associated with the additional drilling was $1,900.The delay was caused by more money being requested for the additional pumping and testing. After negotiations,the pumping and testing were reduced to $4,700,with the final payment being $19,000 and the total payment for the well being $216,000. This included additional piping,screenings and filter packs. Mrs.Surra moved that we allow the final payment to Beeman Drilling for Project WD 96-02 in the amount of $19,000,as agreed by Mr.Beeman,be approved.Mrs. Barker seconded the motion.The vote was unanimous. 6.Discussion and action on purchase of recharge credits;authorization for district manager to enter into agreement for purchase of recharge credits. District Manager Curtis Shook briefed the board on this item.This authorization will allow the district manager to work with CAWCD regarding the incentive recharge program.The approval consists of three parts:a groundwater saving facilities storage and recovery agreement with Roosevelt Water Conservation District;an application for a groundwater storage permit from the Division of Water Resources;and a contract with CAWCD for the delivery of CAP water under the incentive recharge program.They anticipate using approximately $75,000 to purchase recharge credits in the first year,with costs exceeding $100 per acre foot.The initial cost is $36 per acre foot,with the cost growing to $100 per acre foot in 1998.This will give the utility substantial savings and allow them to build up the recharge credits going into this program. District Counsel Bill Farrell stated the actual agreement is in the packet.The CAP water the utility is not in a position to take is taken from us by Roosevelt Water Conservation District and they pay us a portion of the cost of the water and supplement i t with some savings they have.They do not have groundwater credits to use.Roosevelt has agreed to pay for our entire CAP allotment for the year rather than what they may actually use.Mr.Plummer,the consultant,feels very positive about this agreement.He recommended authorization and directing staff to proceed with the other two items required for this contract. District Manager Curtis Shook stated unless this option is implemented,in 1999 the utility would have to cease pumping groundwater.That would in turn mean a treatment plant would have to be built,which would cause the $100 per acre foot costs,as i t would have to be pumped into the zone of concentration and then getting replenishment credits. Mrs. Surra moved to authorize the district manager to enter into an agreement for purchase of recharge credits and for staff to prepare the necessary documents. Mrs.Barker seconded the motion.The motion passed unanimously. 7.District Manager report. District Manager Curtis Shook stated the utility's refinancing is moving to a traditional bonding instrument.FSA,a bond rating firm, will insure our bonds. The rate looks like 5.5% -5.7% over a twenty year issue.The initial borrowing Water Utilities Community Facilities District Meeting Minutes of March 31,1997 Page 2 of 5 will be $6 million,with an actual $7.150 million borrowed.They are requiring a debt replacement account.The sale should take place on or before April 1. He stated a number of good things are beginning to happen.New services are being added with the new well on line,new storage tanks are coming,the height of water being stored in the present tanks is steady and we no longer have to draw water from Arizona Water,which had amounted to $92,000 so far this year. This will save approximately $120,000 per year. District Manager Curtis Shook stated the new well is pumping 530 gallons a minute and we are maintaining full storage tanks at the facility on Buena Vista. District Operating Manager Doug Dobson stated a compliance inspection was held on March 14 and the district was in compliance with the operation and maintenance system.He commented on the lending program being approved and no further water required from Arizona Water.He stated the standpipe is operational at the CAP location on Ironwood and we can now sell construction water.The next small project is a standpipe at the public works yard for drinking water,which should be done in two weeks to four weeks.Today preliminary plans were received on the million gallon storage tanks with a targeted completion date of June 15. 8.District Treasurer report. District Treasurer Keith Lewis briefed the board on the report in front of them. He stated if things continue they way they are going,there will be a much better year end and with no deficit balance.There should be a positive balance,even with the depreciation taken into consideration. Mrs.Surra asked when they would start paying back the City of Apache Junction. District Manager Curtis Shook stated one payment has already been made.He stated they are hoping to make one major payment per year and have i t paid off in three to four years.The city will also be paid interest on its money. Ms Urich complimented the treasurer on the small miscellaneous category. District Treasurer Keith Lewis stated those are mostly bank charges. 9.District Counsel report. District Counsel Bill Farrell stated they would be back on April 14 with some resolutions regarding the bond sale.There is a meeting tomorrow with attorneys to go over the bonding documents.If there is anything further on the rating or contract they will give them a memo tomorrow evening.He corrected the district manager i n stating the bonds should be sold by May 1.not April 1. Chairperson Coleman asked if there has been any negative impact from the failure of other community facility districts in our area in so far as interest rates or bonding ability. Water Utilities Community Facilities District Meeting Minutes of March 31,1997 Page 3 of 5 District Counsel Bill Farrell stated not as far as interest rates,as the strength of the utility's unaudited financial statements precluded that.He complimented the operation of the district and stated the board and manager deserve more credit than they are given for the way the district has been operating.We are seeing it affect the interest in disclosure,as both WUCFD and SMCFD are in the same community.Financial Security Assurance is willing to do business and this indicates they are being convinced that the district is really not the same kind of district as SMCFD.The interest rates run on how strong your balance sheet is,and the ability to insure and the credit worthiness of the bonds could have some small effect.No one has turned them down,they have just gone a little slow. Mrs.Surra stated i t might be a good time to think about naming the water district. Mr.Durbala suggested bringing i t up for an agenda item at the next meeting. Chairperson Coleman agreed. 8.Adjournment. Adjournment at 6:21 p.m. Douglas Coleman Chairperson athleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of March 31,1997 Page 4 of 5 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 31st day of March, 1997.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 1st day of April,1997. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of March 31,1997 Page 5 of 5