SPECIAL SESSION MAY 14, 2008
The Arizona City Sanitary District Board of Directors held a Special Session Meeting at 10:00 a.m., Wednesday, May 14, 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: Gary Boileau, Susan Versluis
Guests: * None
1. Call to Order: Chairman called meeting to order at 10:07 a.m.
2. Welcome to Guests – Chairman’s comments: Chairman welcomed everyone.
3. Discussion and action regarding monetary deposit required from Mesquite Assisted Living Facility in order to move forward with contractual agreement for sewer service to the Facility:
Board was notified Mesquite Assisted Living has been in contact with the District since the last meeting regarding moving forward with sewer service to the project.
Board discussed the following conditions to be added to the draft contract with Mesquite to protect the District:
A. Require a deposit of $15,000.00 to cover all District costs associated with the project. Mesquite will be notified when the deposit amount is reduced to $5,000.00 with 10-days to bring back up to $15,000.00. Should the deposit amount fall to $3,000.00 all services will be terminated until funded back to the original $15,000.00
B. Vault & Haul: Mesquite must use a licensed hauler and provide proof of license to the District. Mesquite is required to pay the licensed hauler.
C. Gallons disposed of into the District sewer system will be billed at the rate of $0.15 per gallon and charged again the deposit. Mesquite is required to provide the District with proof of gallons picked up and disposed of into the District sewer system.
Motion made by Member McKenzie to have the above conditions added to the contract with Mesquite Assisted Living Facility. Motion seconded by Member Miller. Vote -- 4 ayes. Motion carried.
Order of the agenda changed to Items 5, 6 and 7.
5. Discussion and action regarding draft FY 2008-2009 budget review:
Board discussed each line item of the budget in detail. After lengthy discussions, the following changes will be made:
A. Public Notices: Increase to $4,500.00
B. Community Relations: Decrease to $2,500.00
(1) Delete Community Safety Program
(2) Delete Chamber Information Center
(4) Add Against Abuse, Boys & Girls Club, and Fire Fighters Association
C. Increase Odor Scrubber Maintenance: Increase to $70,000.00
D. Electronic Line Location: Decrease to $2,000.00
E. Special Projects: Increase to $1,980,000.00
(1) Add Video Camera: $25,000.00
Board will continue discussions regarding salaries after they hold an Executive Session. Further discussions tabled.
6. Discussion and action regarding review of Draft Rate Study:
Board discussed the draft Rate Study completed by Utility Strategies Consulting Group. The study indicated the following increases will be necessary now in order to keep up with District financial needs over the next 5-years:
A. User Fees: Increase of $4.00
B. Availability Fees: Increase $4.00
C. Hook-up Fees: Increase $200.00
D. Capacity Fees: Increase $200.00
Motion made by Member Campion to propose increasing fees as follows with October 1, 2008 as the effect date of the increase:
A. All User Fees: Increase $1.00
B. Availability Fees: No increase
C. Hook-up Fees: Increase $200.00
D. Capacity Fees: Increase $200.00
Motion seconded by Member Miller. Vote -- 4 ayes. Motion carried.
The above will be included with the budget Public Hearing.
Motion made by Member Campion to recess the meeting. Motion seconded by Member Miller. Vote -- 4 ayes. Motion carried.
Meeting recessed at 11:40 a.m.
Meeting reconvened at 11:50 a.m.
7. Discussion and action regarding repairs to Company vehicle:
Staff advised an estimate was obtained from Drake Equipment of Arizona for the damage done to the one-ton service vehicle as reported at the May 7, 2008 meeting. The estimate is in the amount of $1,562.55. Board then advised the District deductible is $500.00.
Board discussed the deductible and the potential effect of turning in a claim to our insurance carrier for $1,000 might have on our premiums.
Motion made by Member Miller to pay for the repairs to the one-ton Service Vehicle. Motion seconded by Member Campion. Vote -- 4 ayes. Motion carried.
Motion made by Member Miller to recess for lunch. Motion seconded by Member McKenzie. Vote -- 4 ayes. Motion carried.
Meeting recessed for lunch at 12:00 p.m.
Meeting reconvened at 12:30 p.m.
Original order of the agenda resumed.
4. Call for motion to convene into Executive Session pursuant to A.R.S. §38-431.03(A)(1) for discussions regarding budgeting employee salaries for Fiscal Year 2008-2009:
Motion made by Member Campion to convene into Executive Session to discuss budgeting employee salaries. Motion seconded by Member Miller. Vote -- 4 ayes. Motion carried.
Convened into Executive Session at 12:32 p.m.
Reconvened Special Session at 1:10 p.m.
5. Discussion and action regarding draft FY 2008-2009 budget review continued:
Board resumed draft budget discussions.
The following changes were discussed:
A. Remove the term “COLA”.
B. Add 5% merit wage increases to the two Manager’s
C. Income:
(1) Decrease User Fees to: $1,300,000.00
(2) Increase Capital Improvements to: $1,650.000.00
(3) Increase Environmental Services to: $12,000.00
(4) Increase Availability Fees to: $189,000.00
Board will review the following changes at the May 21, 2008 meeting and set the Public Hearing date.
8. Call to the Public: No public comment.
9. ADJOURN:
Motion made by Member Miller to adjourn. Motion seconded by Member McKenzie. Vote – 4 Ayes. Motion carried.
Meeting adjourned at 1:31 p.m.
Date: * _05/21/2008__ Signature: _____ _________________________
Clerk of the Board
