PSWID Public Hearing and Regular Meeting Minutes – 2024-06-27

by | Jun 29, 2024 | Regular Meeting Minutes

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PINE-STRAWBERRY WATER IMPROVEMENT DISTRICT 

Public Hearing/Regular Meeting

Thursday June 27, 2024, at 5:00 p.m.

PSWID Administrative Office

6306 W Hardscrabble Rd.

Pine, AZ 85544

 

  • 1. CALL TO ORDER
    Cory Ellsworth called the meeting to order at 5:00 p.m.
  • 2. PLEDGE OF ALLEGIANCE
    Conducted by Cory Ellsworth
  • 3. PRAYER
    None since one was offered in the preceding executive session. 
  • 4. ROLL CALL OF BOARD MEMBERS
    Conducted by Cory Ellsworth:  Board members present: Sharon Hillman, Cory Ellsworth, Victor Tayao, Roger Childers, and Larry Bagshaw. George Gorkowski was present via Go to Meeting.  A quorum was present. Paul Hendricks, EUSI, and Steve Bowen, operations manager, and Kristi Allen, accountant, were also present. Steve Wene and Brian Imbornoni, the district’s attorneys, were present via Go to Meeting.
  • 5. CALL FOR MOTION TO APPROVE MINUTES OF THE FOLLOWING MEETING(S):
    May 23, 2024 – Regular Meeting. Sharon Hillman moved the minutes be approved. Victor Tayao seconded the motion. The motion carried unanimously.
    June 6,2024 – Special Session. Sharon Hillman moved the minutes be approved. Victor Tayao seconded the motion. The motion carried unanimously.
  • 6. REPORTS TO THE BOARD
    • a. WIFA/EUSI Program Manager’s Report– As posted to the website.
    • b. Field Operations Report – As posted to the website.
    • c. Treasurer’s Report – As posted to the website.
    • d. Secretary’s report – None.
    • e. Vice Chairman’s report – As posted to the website.
    • f. District Attorney’s Report –Steve Wene reported that he had worked on several issues. The Attorney General’s office has dismissed the Nelson claim. He was alerted that PSWID was overbilled $212 and that will be credited on the next invoice. The Strawberry Hollow HOA is asking that PSWID pay HOA fees again on the well site. He will resend them a copy of the previous letter stating that the district is not liable for HOA fees. The Eminent Domain action is proceeding on the Deep Well site. He commented that the district is receiving multiple public records requests from Thomas Reski for district emails and for the legal fees the district is paying regarding the lawsuit. These are requiring attorney review and incurring legal fees for the district for which Mr. Reski is not reimbursing the district. He suggested the district review the fees it charges for public records requests.
    • g. Chairman’s Report – None
  • 7. COMMENTS FROM THE PUBLIC – None
  • 8. BUSINESS
    • I. HAVE A PUBLIC HEARING, DISCUSS, AND TAKE POSSIBLE ACTION FOR THE FOLLOWING ITEMS:
      Motion to open public hearing:  Larry Bagshaw moved that the board open the public hearing. Sharon Hillman seconded the motion. The motion carried unanimously.
      • A. WATER RATES FOR FISCAL YEAR 2024/25
        The increase to the tier and base rates is 3% for FY 24/25 based on the RCAC Rate Study previously approved by the board. In the board discussion, it was pointed out that inflation was running 5-6% currently, so this is a very modest increase. Motion to approve the 2024/2025 water rates. Sharon Hillman moved that the board approve the updated Rate Schedule for FY 2024-2025. Larry Bagshaw seconded the motion. The motion carried unanimously. 
      • B. TAX LEVY FOR FISCAL YEAR 2024/2025
        The tax rate will remain the same as last year’s rate of 1.3981. The projected revenue from property taxes for the FY 2024-2025 is $1,027,514.58 and is dedicated to loan principal and interest payments. The taxes are calculated at the rate times the value provided the Gila County Assessor’s office on an annual basis. This is an increase over the prior year of about $61,199.20 due to market increased values of all properties in the district. There was minimal discussion.
        Motion to approve the 2024/2025 tax levy. Roger Childers made a motion for the board to approve the tax rate structure remaining the same as last year of 1.3981 for the FY 2024-2025 and the Gila County Treasurer to collect $1,027,541.58 on behalf of the district. Sharon Hillman seconded the motion. The motion carried unanimously.
      • C. BUDGET FOR FISCAL YEAR 2024/25
        The final proposed budget for the new fiscal year differs from the one published in the Roundup last month in that it added more funds for legal fees, added funds from the final USDA/WIFA Design Loan, and modified the Construction loan funds. All items were calculated using the district’s first 11 months of revenue and expenses annualized to 12 months. In addition, 3% increases in income and expenses per the Rate Study were included. There was minimal discussion.
        Motion to approve the 2024/2025 budget. Sharon Hillman moved the board approve the final proposed budget for FY 2024-2025 effective July 1, 2024. Roger Childers seconded the motion. The motion carried unanimously.
        Motion to close public hearing: Sharon Hillman moved that the board close the public hearing. Larry Bagshaw seconded the motion. The motion carried unanimously.  
    • II. DISCUSS AND TAKE POSSIBLE ACTION REGARDING THE WATER SHARE ANNUAL ADJUSTMENTS. Kristi Allen. The current rate is $1.05 per 1000 gallons of water purchased by the district. It was recommended that the rate remain the same for FY 2024-2025 as maintenance costs for maintaining and operating the water share well sites were lower, but the cost of utilities and parts remains high. The CPI is 3.3% and PPI is 2.2%. The district was able to reduce the amount of well share water used this last year due to purchasing the McKnight well and rehabilitation of several district wells that enabled us to increase the water availability from district wells. Victor Tayao moved the district to retain the current WAS Wholesale rate of $1.05 per 1000 gallons. Sharon Hillman seconded the motion. The motion carried unanimously. 
    • III. DISCUSS AND TAKE POSSIBLE ACTION REGARDING RATIFYING THE NOSSAMAN LEGAL SERVICE CONTRACT. Sharon Hillman. This is for the law firm that specializes in eminent domain. The district has been consulting with this firm and is hiring them to begin the process. The contract was signed on the district’s behalf by their attorney, Steve Wene on May 12, 2024. Sharon Hillman moved the board to ratify the contract with Nossaman LLP. Roger Childers seconded the motion. The motion carried unanimously. 
    • IV. DISCUSS AND TAKE POSSIBLE ACTION REGARDING THE CANACRE QUOTE. Sharon Hillman. This firm specializes in land support services in conjunction with the eminent domain process. They will provide the services to satisfy the right-of-way requirements. Sharon Hillman moved that the board approve the contract with Canacre USA, LLC and authorize the chairman to sign the agreement. Victor Tayao seconded the motion. The motion carried unanimously. 
    • V. DISCUSS AND TAKE POSSIBLE ACTION REGARDING THE BAKER, PETERSON, BAKER & ASSOCIATES, INC. CONTRACT. Sharon Hillman. This firm specializes in real estate appraisals in conjunction with the eminent domain process. Sharon Hillman moved that the board approve the contract with Baker, Peterson, Baker & Associates, Inc. and authorize the chairman to sign the agreement. Victor Tayao seconded the motion. The motion carried unanimously. 
    • VI. DISCUSS AND TAKE POSSIBLE ACTION REGARDING APPROVING THE HINTON BURDICK ENGAGEMENT LETTER FOR THE FY 23/24 AUDIT. Sharon Hillman. This firm has been the auditors for the district for the past several years. We have received the engagement letters for this year’s audit and the fee will not exceed $23,625. The Special Audit fee for USDA will increase from $4,100 to $4,300. We get reimbursed from USDA for this. Sharon Hillman moved that the board approve retaining Hinton Burdick for the FY 23/24 audits and authorize the chairman and treasurer to sign the engagement letter. Larry Bagshaw seconded the motion. The motion carried unanimously.
    • VII. DISCUSS AND TAKE POSSIBLE ACTION REGARDING APPROVING THE ADMENDMENTS TO THE RAGHT TRUST AGREEMENT AND DECLARATION OF TRUST. Kristi Allen. PSWID provides employee benefits through the RAGHT Trust. The Trustees approved removing the principal location of the trust from the Agreement at the February 23, 2024, meeting and needs the members of the trust to approve the amendments related to that change. Cory Ellsworth moved that the board approve Resolution No. 06272024, which approves those amendments, and authorize the chairman and secretary to sign the document. Victor Tayao seconded the motion. The motion carried unanimously.
  • 9. IDENTIFY POTENTIAL AGENDA ITEMS FOR THE NEXT SCHEDULED BOARD OF DIRECTORS MEETING ON JULY 25, 2024.
    • I. Fees for public record requests which require legal review. Way to recover legal fees from the requestor.
    • II. Authorize a study for a 5-to-10-year projection of water demand based on build out of available real estate in the district, including commercial vs residential meters according to district policy.
  • 10. MOTION TO ADJOURN. Larry Bagshaw moved the open session to be adjourned. Roger Childers seconded the motion. The motion carried unanimously.