PSWID Regular Meeting Minutes – 2024-04-25

PINE-STRAWBERRY WATER IMPROVEMENT DISTRICT

Regular Meeting

Thursday April 25, 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
   Offered by Cory Ellsworth. 

4. ROLL CALL OF BOARD MEMBERS
   Conducted by Cory Ellsworth:  Board members present: Sharon Hillman, Cory Ellsworth, George Gorkowski, Brent Pruett, Victor Tayao, and Larry Bagshaw. A quorum was present. Paul Hendricks, EUSI, and Steve Bowen, operations manager, Kristi Allen, accountant, and Kyle Wortman, field manager were also present. Steve Wene, the district’s attorney, was present via phone.

5. CALL FOR MOTION TO APPROVE MINUTES OF THE FOLLOWING MEETING(S):
   March 28, 2024 – Regular Meeting. Sharon Hillman moved the minutes be approved with a typo of fencing being corrected. George Gorkowski 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 – There were 5 leaks with a loss of 55,000 gallons. They held a safety meeting with the fire department and the Portals Homeowners Board regarding the water line replacement project. The field staff is painting the well houses. The preliminary designs for the landscaping of the SV3 well site have also been received and distributed to the board.
   • 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. There still has not been any feedback from the AG’s office regarding the Nelson claim and In the Munger matter the water meter issue is still pending. There was also an encroachment issue with a set back exemption request that could have affected one of our water lines. The Halperin James lawsuit will be discussed in the executive session today.
   • g. Chairman’s Report – None

7. COMMENTS FROM THE PUBLIC – Ryan Mechem with Rhino Construction submitted a blue card regarding Eagle Glen Townhomes requested water meters. This was deferred to item 8III.  

8. BUSINESS Discussion and possible action regarding the following items:
   • RAGHT TRUSTEES. The board decided that the trustees needed to be board members and not any employee. Steve Bowen is still wanting an office staff member to be the alternate trustee. George Gorkowski moved that this item be tabled and to be discussed in executive session. Sharon Hillman seconded the motion. The motion carried unanimously.
   • PROPOSED BUDGET FOR FY 2024-2025. Kristi Allen presented the proposed budget. It includes the WIFA & USDA debt service payments and the USDA reserve account funding beginning in FY 25 and continuing for 10 years. The notable reduction to the overall budget is due to the end of the USDA Design loan funding program. The proposed budget is calculated using the district’s first 9 months of revenue and expenses annualized to 12 months. Included is the 3% increase to both income and expenses per the Board approved 2022 RCAC rate study. Additionally, the budget includes the estimated revenue for releasing 60 meters over the next 12 months at 5 meters per month, so approved by the Board in August of 2023. The proposed budget is for $16,163,148.00 in income and expenses. It will be brought back next month for approval to publish.
   • RHINO CONSTRUCTION REQUEST FOR 43 METERS. Ryan Mechem of Rhino Construction wants to start the build out of the Eagle Glen condominiums with vertical construction in the next 9 to 12 months with completion in the next two years. He is requesting that the meters be installed in the existing meter boxes, and he be given a Will Serve letter for the county so he can secure a building permit and financing. There are still requirements of items that he must supply the district including the Approval to Construct from ADEQ. The district is concerned about the prior approval from ADEQ is 40 years old as is the infrastructure. He will see if he can get the items we need.
   • ENGINEERING CONTRACT WITH SUNRISE ENGINEERING USDA PROJECT PINON DRIVE BASED ON FUNDING AVAILABILITY. The existing water line in Pinon Drive which is black ABS pipe and has several leaks a year was omitted from the White Oak/Cedar Meadows project. We have the funds for the project in the USDA program, but the WIFA Design Loan ends June 2024. Sharon Hillman has requested WIFA to extend us a 90-day extension on the loan, so we can get this line designed and out to bid. It entails an estimated 1700’ of pipe and the services are in the road. It is estimated that the total project will cost about $750,000. Brent Pruett moved the board approve authorization for Sunrise Engineering to complete the project so it can go out to bid in early fall if WIFA extends the Design Loan. Victor Tayao seconded the motion. The motion carried unanimously. 

9. IDENTIFY POTENTIAL AGENDA ITEMS FOR THE NEXT SCHEDULED BOARD OF DIRECTORS MEETING ON MAY 23, 2024.

1. • I. RAGHT Trustees – executive session
   • II. Preliminary budget approval.

10. MOTION TO ADJOURN OPEN SESSION. George Gorkowski moved the open session to be adjourned. Sharon Hillman seconded the motion. The motion carried unanimously.