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Home My WebLink About1997-08-04 BOA MINUTESDISTRICT BOARD OF THE WATER UTILITIES COMMUNITY FACILITIES DISTRICT CITY OF APACHE JUNCTION,ARIZONA AUGUST 4,1997 -6:30 P.M. BOARD OF DIRECTORS ROLL CALL Chairperson Douglas Coleman Vice Chairperson Anne Surra Mr.R.E.Eck Mr.Joe Durbala Ms.Carol Urich Mr.John Insalaco Ms.McClain MEETING MINUTES Others Present: Curtis Shook,District Manager Kathleen Connelly,District Clerk George Hoffman,Asst.City Manager Doug Dobson,District Operating Mgr. Keith Lewis,District Treasurer Larry Harmer,Development Svcs.Dir. 1.Call to order. 2.Roll call. 3.Approval of minutes of May 19,1997. Vice Chairperson Surra moved to approve the minutes of the May 19,1997,meeting. Ms Urich seconded the motion.During roll call for the vote Mr.Durbala recalled that the District was supposed to be coming back with a name and logo at tonight's meeting,and he does not see i t in the minutes for the last meeting. District Clerk Kathy Connelly stated there was a name.Vice Chairperson Surra added the "Apache Junction Water Company"was chosen.Chairperson Coleman read the minutes regarding the name change and logo.Vice Chairperson Surra stated there is no time frame listed.Mr.Durbala stated there is no new information and he was wondering about it.The district clerk continued with the roll call vote and the vote was unanimous. 4.Acknowledge receipt of proposed District budget for Fiscal Year 1997-98. District Manager Curtis Shook briefed the board on this item.He stated this budget must be adopted on or before October 1,1997.He asked the board to acknowledge the receipt of the budget tonight and in September they will be able to ask questions or contact him earlier with those questions.He stated a new well was added on East Baseline last year which has more than doubled the pumping capacity and brought a higher quality of water.This water is being blended at the tanks at 16th Avenue and Buena Vista.They no longer have to purchase water from Arizona Water.There i s $4.000 left in the budget towards Arizona Water i n case of an emergency purchase.The utility was refinanced last year,which extended the original note to 20 years from the original 7 years.The additional funds received at the refinancing are allowing the district to build two new storage tanks,install an emergency electrical back-up stystem and replace and extend water distribution lines.The balance due the city has been reduced Water Utilities Community Facilities District Meeting Minutes of August 4,1997 Page 1 of 4 during the past year.The city has also been reimbursed for administrative costs.He estimates continued increases in water sales revenues coming from new services.The city manager has gotten a signature from Arizona Water for the annexation of the triangle at Barkley Road.They are proposing the same salary adjustments and merit raises as proposed to the city employees.They are paying the Pinal County tax debt out of the operating revenues while still maintaining .a balance of $320,000 in the reserve,which they are hoping to bring up to $400,000 this next year.This money will be the capital reserve for when they :need to build a treatment plant for the use of CAP water.He commended the efforts of Doug Dobson and Keith Lewis for the integration of the utility. Mr.Durbala asked if an amended sheet on the status of the recharge credits could be obtained.District Manager Curtis Shook stated he would get that for them. Mr.Eck asked to have i t clarified if they are still dependent on Arizona Water during a power outage or i f there is a back-up system.District Operating Manager Doug Dobson stated that the back-up system is in the process of being added at this time.The bid preparation should be finished in 30-45 days. Mr.Durbala asked if most of the new subdivisions would be under the district's water supply.District Manager Curtis Shook stated the ones currently being built are under Arizona Water,but there are several others in planning that will be in the district and amount to approximately 600 units,with approximately 200- 400 of those in service this year.Mr.Durbala asked if the rates would be the same.District Manager Curtis Shook stated they would remain the same.He added with the city lending them professional labor,they were able to build a surplus. Mr.Durbala asked what the projected revenue would be for the new standpipe. District Manager Curtis Shook stated they are providing non -potable water for developments,which is CAP water. Ms.McClain asked i f there is a chance the cost of the water will go down. District Manager Curtis Shook stated it may over time,but they have to pay the Pinal County taxes out of the operating revenues and they need to replace some pipes.He added they can look at that in a few years.Ms.McClain stated she would like the district to be more competitive. Ms.McClain asked if Arizona Water had a line going across the triangle that was to be annexed.District Manager Curtis Shook stated they do.Ms. McClain asked if the district would be servicing that area.District Manager Curtis Shook stated they would not be servicing that area;it would not be cost effective as there is no revenue coming out of it. Vice Chairperson Surra asked about the formula used for charging back for services for city personnel.District Treasurer Keith Lewis stated they charge back 10% of the salaries of the city personnel affected.Vice Chairperson Surra asked if the hours were tracked.District Treasurer Keith Lewis stated they do not track the hours,i t is a flat charge back.District Manager Curtis Shook stated i t is their intention in the future to do some more effective cost Water Utilities Community Facilities District Meeting Minutes of August 4,1997 Page 2 of 4 accounting.Vice Chairperson Surra asked i f the feasibility for hiring new positions would be more cost effective.District Manager Curtis Shook stated they should have a much better idea of where they stand at next year's budget. They had promised to keep the rates stable and increase the quality and capacity when they took over,and that is their priority at this time. Ms.McClain asked i f they were in the process of hiring someone.District Manager Curtis Shook stated they budgeted last year for an accounting position, and that person should be starting at the end of this month.Ms.McClain asked about the field position that someone resigned from.District Manager Curtis Shook stated they have someone who is leaving to go to Arizona Water.and they are proposing an additional maintenance position in this budget.He added the superintendent's position has been filled.Ms.McClain asked if the person is from here.District Manager Curtis Shook stated the person is from Montana;the local person from Queen Valley was not willing to accept the salary. Mr.Eck asked about the rumors concerning the new well.Chairperson Coleman stated they needed to stay with the item on the agenda.District Manager Curtis Shook stated he would talk about that in the manager's report. Mr.Durbala moved to acknowledge receipt of the proposed district budget for Fiscal Year 1997-98.Vice Chairperson Surra seconded the motion.The motion passed unanimously. 5.Acknowledge receipt of proposed District Policies and Procedures to include Personnel Policies,Safety Policies,Office Policies and District Specifications. District Manager Curtis Shook briefed the board on this item.He handed out the policies to the board.They generally follow the policies of the city.He requested they acknowledge receipt today and peruse i t at their leisure.I t would be brought back in the future to be discussed more fully.District Operating Manager Doug Dobson stated the last three pages in Section 5 were incorrect and he would make sure they got the revisions. Vice Chairperson Surra moved that they received for their perusal the proposed district policies and procedures that include personnel policies,safety policies,office policies and district specifications for the Water Utilities Community Facilities District of the City of Apache Junction.Ms.McClain seconded the motion.The vote was unanimous. 6.District Manager report. District Manager Curtis Shook stated the first million gallon storage tank is being installed at the 16th Avenue and Buena Vista site.He asked Doug Dobson how that was coming along. District Operating Manager Doug Dobson stated they are starting to lay i t out today and should start welding it together tomorrow. Water Utilities Community Facilities District Meeting Minutes of August 4.1997 Page 3 of 4 District Manager Curtis Shook stated the water and testing procedures in one well are showing arsenic at a higher level than the five parts per million gallons that is allowable under the regulations.It was at 5.3 parts per million.The water therefore has to be blended to bring i t under and meet the requirements. That schedule has been established with the state and they are currently following that schedule.The district is in full compliance with all the perameters measured by the state. 7.District Treasurer report. None. 8.Adjournment. Adjournment at 6:58 p.m. Douglas fol eman Chai rpeeson 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 4th day of August, 1997.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 5th day of August,1997. Kathleen Connelly District Clerk Water Utilities Community Facilities District Meeting Minutes of August 4,1997 Page 4 of 4