MINUTES For Regular Meeting of the Board of Directors of Superstition Mountains Community Facilities District No. 1

Transcription

1 SUPERSTITION MOUNTAINS COMMUNITY FACILITIES DISTRICT NO S. Ironwood Drive Apache Junction, Arizona Telephone (480) Facsimile (480) MINUTES For Regular Meeting of the Board of Directors of Superstition Mountains Community Facilities District No. 1 DATE: October 24, 2014 PLACE: Superstition Mountains Community Facilities District No S. Ironwood Drive Apache Junction, Arizona PRESIDING: PRESENT: ABSENT: GUESTS: Ms. Kathleen Waldron Kathleen Waldron, Pat Richmond, Steve McDaniel, Anthony Bowler and Jeff Struble Attorney: Mr. Clarke H. Greger District Employees: Darron Anglin, Sue Sopko, Andrea Dominguez, Sarah Hall, Maria Zagar, Tonia Weinmann, Dennis Johnson and Kathy Huckfeldt None Lynda McKay, the bagnall company Olivia Brasher, Fester & Chapman P.C. Karen Sweeney, Marreel Slater Insurance John Slater, Marreel Slater Insurance Norma Gerhardt 1. Call to Order. Ms. Waldron called the meeting to order at 8:00 AM. Pledge of Allegiance led by Mr. Struble. 2. Approval of the Minutes of the September 22, 2014 Regular Meeting and the October 10, 2014 Special Meeting. Ms. Waldron asked if there were any additions or corrections to the Minutes; Page 1 of 6

2 Mr. Struble requested that Agenda Item 3 of the September 22, 2014 Regular Meeting Minutes be corrected to read that the Board, rather than Ms. McKay, asked Mr. Anglin to step out of the meeting. The September 22, 2014 Regular Meeting Minutes were accepted as corrected. The October 10, 2014 Special Meeting Minutes were accepted as presented. 3. Presentation of the District s financial statement and auditor s report for the fiscal year ended June 30, Ms. Sopko introduced Ms. Olivia Brasher from Fester & Chapman P.C. to present the District s financial statement. Ms. Brasher thanked District staff for their hard work and diligence in preparing the CAFR. [Board Treasurer Bowler arrived at 8:06 AM.] Ms. Brasher reviewed the audit objectives and audit results for the Board. Fester & Chapman P.C. provided an unmodified opinion on the District s financial statements which is the best possible result. There were no deficiencies over internal controls, no adjusting journal entries, no non-compliance with regard to any laws or regulations, and no audit findings or other issues to report. Ms. Brasher stated that the financial reports the Board receives from staff each month are reliable for making the District s financial decisions. Ms. Brasher stated that potential for fraud is audited and that nothing came to the auditors attention that would indicate any potential fraud. Ms. Brasher stated that for the first time since Fester & Chapman P.C. has been conducting the District s audit, there was an increase in net position. MOTION made by Mr. McDaniel to accept the District s financial statement for Fiscal Year ended June 30, 2014 as presented; seconded by Mr. Bowler. 4. Discussion of renewal of the District s employee benefits program including the proposed Health Insurance Renewal with Blue Cross Blue Shield of Arizona and action as determined. Mr. Anglin introduced Mr. John Slater from Marreel Slater Insurance to present the District s proposed Health Insurance Renewal. Mr. Slater presented the two plans proposed for the District and discussed the cost savings that the proposed plans will provide, plan design changes resulting from the Affordable Care Act, and the introduction of a Health Savings Account plan to the District. The District s current plan is no longer available because it does not comply with the provisions of the Affordable Care Act (ACA). The new plans are ACA compliant. If approved by the Board, both plans presented would be available for employees to choose from. Page 2 of 6

3 Mr. Slater explained the details of each of the two proposed plans and the differences between the two. Because of the difference in plan designs and the increased out of pocket maximums, it was proposed that employee contributions towards their premiums remain at 8% and that dependent contributions remain at 10%. Mr. Slater explained the Health Savings Account and how it can be utilized. The District s proposal for offsetting the higher out of pocket costs associated with the HSA Plan was to match employee contributions into their HSA. The District would match up to $1,500 for individuals and up to $3,000 for families. Mr. Anglin stated that the HSA match was designed to incentivize employees to contribute into their HSA and not intended to be a permanent offer. The match would be reevaluated each benefit year. MOTION by Mr. Bowler to offer the PPO Plan with the option of a Flexible Spending Account and the Health Savings Account with the option of a Limited Flexible Spending Account with the District s match of $1,500 for individuals and $3,000 for families, as presented; seconded by Ms. Richmond. 5. Presentation and discussion of results of salary survey, the proposal for a complete salary survey and benefits survey, and action as determined. Ms. McKay presented the requested proposal for compensation and benefits surveys and examples of each. A sample Services Agreement was also provided to the Board. The Board requested an amended proposal to reflect 19 positions rather than 29. The Board requested that the benefits survey be postponed until the 2 nd quarter of 2015 so that the results would be more current at the time of the District s benefit renewal process. Mr. Bowler asked staff where in our salary ranges we typically start a new employee. Mr. Anglin responded that we generally start a new employee near the bottom of the range for their position to allow room for growth. MOTION made by Mr. Struble to accept the proposed Service Agreement, as amended; seconded by Mr. Bowler. The Board directed staff to have Mr. Greger review the amended Service Agreement prior to Ms. Waldron signing the agreement. [At 10:17 AM Ms. Waldron recessed the meeting for a brief break.] [At 10:43 AM Ms. Waldron resumed the meeting.] Page 3 of 6

4 7. The District Manager s Monthly Disclosure Report on Operations and Administrative Status Report for September, [Item 7 on the agenda was conducted before Item 6 to accommodate staff.] Dennis Johnson was recognized for 10 years of service with the District. Mr. Anglin stated that due to recent rainfall the District received an excessive amount of storm water in the collection system. Based on these events and future growth potential for the City of Apache Junction he would like to begin flow monitoring in the collection system. This would allow the District to determine where the majority of the storm water is entering the system and more accurately measure the system s capacity for future growth. Mr. Anglin stated that our bondholder, Alliance Bank, recently participated 9.9 million of our outstanding debt to another institution. This may indicate that other institutions could consider the District s debt to be an attractive investment. Mr. Struble asked if staff had a projection regarding participation in electronic billing and payments. Ms. Hall explained that response had been positive and that staff was taking steps to simplify the sign up process. 6. Reports on and discussion of review of applications for District Manager position, interviewing candidates, arrangements between the District and new District Manager, and action as determined. [At 10:48 AM the Board asked Mr. Anglin to step out of the meeting during discussion about the District Manager position.] Ms. Dominguez stated that all candidates had been contacted and that there was a change to the order of the interviews. Mr. Edgecomb will now be interviewed at 10:00 AM and Mr. Kiriluk will be interviewed at 1:00 PM on October 31, Travel arrangements were confirmed for Mr. Edgecomb. Ms. Waldron reminded staff that the Board will arrive at 7:30 AM on the day of the interviews to review the interview questions. Mr. Greger advised that the 7:30 AM meeting will require an additional notice. Ms. Dominguez asked the Board if they are planning to make a decision and announcement regarding the District Manager position on the day of the interviews. The Board confirmed that the decision would be made on October 31, MOTION made by Mr. McDaniel to begin the 7:30 AM meeting on October 31, 2014 in Executive Session for the purpose of discussing District Manager employment matters; seconded by Ms. Richmond. [At 10:58 AM Mr. Anglin returned to the meeting.] Page 4 of 6

5 8. Request for resolution ratifying payment of the invoices and the transfers presented as (a) Requisition No. 18 to the Operations and Maintenance Checking Account and (b) Requisition No. 17 to the Capital and Replacement Fund. Ms. Waldron asked the Board if there were any questions; there were none. MOTION made by Ms. Richmond to ratify payment of invoices and the transfers submitted to the Board, consisting of Requisition No. 18 in the amount of $17, to the Operations and Maintenance Checking Account and Requisition No. 17 in the amount $64, to the Capital and Replacement Fund; seconded by Mr. McDaniel. All voted Aye ; none voted Nay ; Motion carried. 9. Discussion of proposed JRC Solids Management Facility and action as determined. Mr. Anglin reviewed the District s position regarding the proposed facility. Mr. Anglin stated that Mr. Cooper s engineer commented during the October 21, 2014 City Council meeting. The City Council will conduct a public hearing on November 4, 2014 regarding this facility, prior to the Pinal County Planning and Zoning hearing on November 20, Mr. Anglin stated that the District was invited to speak at the November 4, 2014 public hearing. Mr. Anglin recommended that the District send a letter to the Pinal County Planning and Zoning Commission stating the District s opposition to the JRC Solids Management Facility. The Board directed Mr. Anglin to send a letter to the Pinal County Planning and Zoning Commission, on behalf of the District, stating the District s opposition to the JRC Solids Management Facility. The Board also directed Mr. Anglin to include the District s offer of a volume discount and guaranteed capacity and Mr. Cooper s lack of interest. 10. Discussion of public relations undertaking including schedule for updating website and action as determined. Ms. Dominguez stated that the website has been updated to announce the Certificate of Excellence in Financial Reporting that was awarded for FY Discussion of District s strategic planning and action as determined. Ms. Waldron asked the Board if there were any updates; there were none. 12. Call to the public. The Board will neither discuss nor take legal action on a matter raised during the call to the public; but may refer the matter to the District staff for review or direct the matter be put on a future agenda. Members of the Board may respond to matters raised as permitted by Ariz. Rev. Stat. Ann H. No one from the public appeared. Page 5 of 6

6 13. Adjournment. Meeting adjourned at 11:38 AM. Page 6 of 6

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