REGULAR MEETING                                                                     JULY 2, 2008

The Arizona City Sanitary District Board of Directors held a Regular Meeting at 6:00 p.m., Wednesday, July 2, 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:                                      Tony Alley, Frank Andrews,  Susan Versluis

Guests:                                               William Sullivan, CGSUS; Randy Tirpak, Brown and Caldwell; Roy Garrison, Ivory Towers Realty; Kim Allen, Connie Campion, Residents

1.         Call to Order:  Chairman called meeting to order at 6:00 p.m.

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

3.                  Discussion and possible action regarding the Recharge Project:

Board advised the Final Appealable Facility Permit was received by the District on June 20, 2008.  The final permit will be issued either:

            1.         Upon ADWR receipt of the signed waiver, waiving the terms and conditions set forth in the Final Appealable Permit

            or

            2.         At the end of the 30-day appeal period.

Mr. Livingston has reviewed the permit.  As he has no objections, he would like the waiver form signed and submitted to ADWR so the Final Permit can be issued.

Testing requirements were discussed.  Mr. Andrews advised it is his understanding the District will take meter readings, samples and submit those samples for testing.  Mr. Livingston will pay all costs associated with those tests.  He further advised that due to the extent of tests involved, the District may need to hire someone to manage the facility.  Once discharging has commenced, Mr. Andrews will keep the Board advised of the time involved monitoring the facility.

Mr. Livingston has been advised the steps are still in need of repair.  As they are now, the steps are a safety hazard.

Mr. Sullivan suggested the District send Mr. Livingston a letter going over the terms of the contract with Recharge Technologies regarding their obligations to comply with the terms and conditions of the Permit, pay all costs associated with testing and to repair the steps.  Water will not be delivered to the Recharge Facility until (1) the Permit has been received and (2) the steps are repaired.  Board agreed the letter should be sent to Mr. Livingston.

4.         Call for motion to convene into Executive session pursuant to A.R.S. § 38-431.03(A)(3) for discussion or consultation for legal advice with the attorney of the district relating to an the results of an investigation into plant operations and management

5.         Call for motion to convene into Executive session pursuant to A.R.S. § 38-431.03(A)(1) for discussion and consideration employment, assignment, appointment, promotion, demotion, dismissal, salary, discipline or resignation of Plant Superintendent Gary Boileau and Senior Operator Frank Andrews.

Motion made by Member McKenzie to convene into Executive Session for Items 4 and 5 pursuant to A.R.S. §38-431.03(A)(3) and A.R.S. §38-431.03(A)(1).  Motion seconded by Member Campion.  Vote -- 4 ayes.  Motion carried.

Recessed into Executive Session at 6:12 p.m.

Reconvened Regular Meeting at 7:34 p.m.

6.         Discussion and approval of separation agreement and release with Gary Boileau:

Motion made by Member Miller to accept the resignation of Mr. Boileau and to accept the separation agreement and release between the District and Mr. Boileau.  Motion seconded by Member McKenzie.  Vote -- 4 ayes.  Motion carried.

Board wishes Mr. Boileau the best of luck in his future endeavors.

7.         Discussion and approval of new duties and/or new position of Frank Andrews, including direction to notify regulatory agencies and vendors regarding same:

Motion made by Member Miller to appoint Frank Andrews the Interim Plant Supervisor at $22.50 per hour with a review in 90-days and to direct District Staff to notify all regulatory agencies and vendors regarding the same.  Motion seconded by Member Campion.  Vote -- 4 ayes.  Motion carried.

Order of the Agenda changed moving Item No. 8 until the end of the meeting.

9.         Discussion and possible action regarding agreement with Opt Co. Inc. for SBR Tank #3 repair work:

Mr. Sullivan advised he has not sent the agreement to Opt Co., Inc. as yet.  The Contract should be mailed out by July 3, 2008.

10.       Discussion and possible action regarding the Live Oak Ranch Subdivision, ADEQ approval, homes built without sewer permits and sewer permit surcharge:

Board advised the District has finally received the Discharge Authorization from ADEQ.  The System has also been changed into the District’s name.

Staff will start charging the six customers using the system immediately.  Mr. Sullivan reminded the Board letters were sent to all six advising that once the System was completed and accepted, they could also be back charged for their use.  The District may want to offer those customers payment arrangements.  Staff will research the purchase dates and get back to the Board with the exact dates.

The portion of the dirt that gave way has been repaired.  The line was also video inspected which showed no damage to the sewer line.

11.       Review and approval of Minutes:

A.         Regular Meeting:         June 18, 2008

Motion made by Member Miller to approve the minutes of the June 18, 2008 Regular Meeting as presented.  Motion seconded by Member Campion.  Vote – 4 Ayes.  Motion Carried.

12.       Call to the Public:  

            *           Mr. Alley stated he has been with the District almost 10-years.  Frank is more than capable of handling the job and is a very conscientious worker.  Mr. Alley is glad  to have Frank in the position.

13.       Set future meeting dates:

Regular Meetings:       July 16, 2008

                                    August 6, 2008

                                    August 20, 2008

                                    September 3, 2008

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

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

            *  07/16/08 - Staff Reports

            *  Future - Plant Security

            *  Future - New Admin Building Planning & Development

            *  Future - Mesquite Assisted Living Facility

            *  Future - DMA/District Boundary Master Plan

            *  Future - Reclaimed Reuse Agreement

            *  Future -  Location for Satellite Plant

Order of the Agenda referred back to Item No. 8

8.         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 Reclaimed Water Reuse Agreement with the Arizona City Golf Course and related litigation.

Motion made by Member Campion to convene into Executive Session pursuant to A.R.S. §38-431.03(A)(3) and (4).  Motion seconded by Member Miller.  Vote -- 4 ayes.  Motion carried.

Recessed into Executive Session at 7:45 p.m.

Reconvened Regular Meeting at 8:08 p.m.

Original Order of the Agenda resumed

15.       ADJOURN:  Motion made by Member Campion to adjourn.  Motion seconded by Member McKenzie.  Vote – 4 Ayes.  Motion Carried.  Meeting adjourned at 8:10 p.m.

Date:   *  _07/16/2008__                   Signature: _____   _________________________

                                                                              Clerk of the Board