REGULAR MEETING                                                                        MAY 7, 2008

The Arizona City Sanitary District Board of Directors held a Regular Meeting at 6:00 p.m., Wednesday, May 7, 2008, at the regular meeting place of 12922 S. Kashmir Road, Arizona City, Arizona.

Board Members Present:                   Richard Autry, David Campion, Joanne McKenzie, William Miller

Board Members Absent:                     Cecil Borboa

Staff Present:                                      Susan Versluis

Guests:                                               Michelle Swann, CGSUS; Randy Tirpak, Brown

                                                            and Caldwell; Kim Allen, Roger Tiepsen, Residents

1.         Call to Order:  Chairman called meeting to order at 6:03 p.m.

2.         Welcome to Guests – Chairman’s comments:   Chairman welcomed guests

3.         Discussion and update regarding the engineering safety issues, design and budgeting:

Mr. Tirpak reported he conducted a 60% Planning meeting with Staff and two Board Members last week.  He advised that back in January Brown & Caldwell provided a very rough estimate to repair/replace certain items.  The original estimate was for $425,000.  Based on certain safety issue work being completed, the estimate is now approximately $367,300 to complete the project.

Starting Thursday, May 8, 2008, Brown & Caldwell will start working on the problem with the double T’s in the SBR tanks.

4.         Call for motion to convene into Executive Session pursuant to A.R.S. §38-431.03(A)(3) and (A)(4) for discussion or consultation for legal advice with the District Attorney in order to consider its position and instruct its attorneys regarding the Board’s position regarding a potential contract with Mesquite Assisted Living Center that is the subject of negotiations:

Prior to the call for Executive Session, Mr. Tirpak advised he had a meeting with Mesquite representatives regarding the preliminary design for the lift station and sewer connection into the District line.

Once the lift station is completed, Mesquite will deed over that portion of land to the District.

Mesquite is also aware they will be required to pay all District costs associated with the project (Engineering, Attorney, etc.).

6.         Discussion and possible action regarding the Reclaimed Water Reuse Agreement with the Arizona City Golf Course

7.         Call for motion to convene into Executive Session pursuant to A.R.S. §38-431.03(A)(3) and (4) for the purpose of obtaining legal advice and/or for discussions or consultation with District’s legal counsel to consider the District’s position and instruct its representatives regarding the Reclaimed Water Reuse Agreement with the Arizona City Golf Course

Items 4, 6 and 7 were then combined.

Motion made by Member Miller to convene into Executive Session pursuant to A.R.S. §38-431.03(A)(3) and (4) for the purpose of obtaining legal advice and/or for discussions or consultation with District’s legal counsel to consider the Board’s position regarding a potential contract with Mesquite Assisted Living Center that is the subject of negotiations and the District’s position and instruct its representatives regarding the Reclaimed Water Reuse Agreement with the Arizona City Golf Course.  Motion seconded by Member Campion.  Vote -- 4 ayes.  Motion carried.

Convened into Executive Session at 6:11 p.m.

Reconvened Regular Meeting at 7:02 p.m.

5.         Discussion and possible action regarding providing sewer service to Mesquite Assisted Living facility

No discussion.

8.         Discussion and possible direction regarding Reclaimed Water Reuse Agreement with Arizona City Golf Course:

Motion made by Member Miller to serve the Arizona City Golf Course with the complaint.  Motion seconded by Member Campion.  Vote -- 4 ayes.  Motion carried.

9.         Authorize Pinal County Elections Department to conduct the November election for the District placing three candidates on the November 4, 2008 ballot for a fee:

Board notified the Pinal County Elections Department will add our Board positions to the General Election ballot.  The cost is approximately $1,350.00. 

Motion made by Member Miller to approve the Pinal County Elections Department conducting the District’s Board election.  Motion seconded by Member McKenzie.  Vote -- 4 ayes.  Motion carried.

10.       Report regarding damage to Company vehicle, property owner fencing, and termination of employee:

Board notified an employee damaged a property owner’s block wall while working in the easement.  The employee has been terminated for violating several District policies related to this incident.

The damage to the block fence was $450.00.  The block fence has been repaired to the owners satisfaction.  The damage to the one-ton truck is $1,500.00.  Board will need to determine if this incident should be turned into our insurance carrier.  Our deductible is $500.00.

Item will be placed on the next available agenda.

11.       Review and discussion regarding the draft budget for FY 2008-2009 and review of the draft rate study:

Board will hold a Special Session on May 14, 2008 to discuss the budget and rate study.

12.       General Plant Operational Update:

            A.         Plant Superintendent's general operational update

(1)        April influent, discharges and compliance status

Influent flow report on file in the District Office.

(2)        Authorize the purchase of a replacement A/C Unit for the PLC room in the Headwork’s Building:

Board notified that the A/C Unit to the Headwork’s building can no longer be repaired.  The cause of the damage is the sewer gases in that building.  When the A/C Unit was installed during construction, the proper coating was not applied to the unit, therefore, sewer gases have literally eaten the unit.

Estimate for a new, properly coated 2-1/2 ton unit was obtained from Al & Riley’s.  The estimate is $7,023.93.

Motion made by Member McKenzie to purchase the replacement unit and to charge the expense to Contingencies.  Motion seconded by Member Campion.  Vote -- 4 ayes.  Motion carried.

13.       Administrative Update:

            A.         Office Manager’s general operational update

            (1)        General Report

            (2)        Status of Sewer Service Connection Permits

            (3)        April direct disbursements and transfers to the County

Reports on file in the District Office.

14.       Review and approval of Minutes:

A.         Regular Meeting:         April 16, 2008

Motion made by Member Miller to approve the minutes of the April 16, 2008 meeting minutes as presented.  Motion seconded by Member Campion.  Vote – 4 Ayes.  Motion carried.

15.       Call to the Public:  No public comment.

16.       Set future meeting dates:

Special Session:         May 14, 2008 at 10:00 a.m.

Regular Meetings:       May 21, 2008

                                    June 4, 2008

                                    June 18, 2008

            *  Meetings are scheduled for 6:00 p.m. unless otherwise noted

17.       Discussion and action regarding all Future Agenda items and concerns:

            *  05/14/08 - Budget and Rate Study Review

            *  05/21/08 - Recharge Project Update

            *  05/21/08 - Rate Study Review

            *  05/21/08 -  Budget Review

            *  06/04/08 - Staff Reports

            *  06/18/08 -  Public Hearing (Budget & Rates)

*  Future -  Location for Satellite Plant

18.       ADJOURN: 

Motion made by Member Miller to adjourn.  Motion seconded by Member McKenzie.  Vote – 4 Ayes.  Motion carried.

Meeting adjourned at 7:30 p.m.

Date:   *  _05/21/2008__                   Signature: _____   _________________________

                                                                              Clerk of the Board