Public Notice Pursuant to A.R.S. ARIZONA … · David Iwanski, AZ Water Association Warren Tenney, AMWUA Lacey James, ... Mr. Tenney said one way to help would be for AMWUA to continue

Arizona Municipal Water Users Association

3003 North Central Avenue, Suite 1550, Phoenix, Arizona 85012 � (602) 248-8482 � amwua.org

Public Notice Pursuant to A.R.S. § 38-431.02

ARIZONA MUNICIPAL WATER USERS ASSOCIATION BOARD OF DIRECTORS

MEETING NOTICE AND AGENDA

Thursday, May 24, 2018 – 11:00 a.m.

Arizona Municipal Water Users Association

Board Conference Room 3003 North Central Avenue, Suite 1550

Phoenix, Arizona 85012 A. Call to Order

B. General Business—Items for Discussion and Possible Action

1. Approval of the Minutes from the April 26, 2018 Meeting

2. Schedule Next Meeting Date: Thursday, June 28, 2018, 11:00 a.m.

3. 2018 Legislative Review

4. Status of Post-NGS Energy for CAWCD

5. AMWUA Financial Statements through Third Quarter Ending March 2018

6. AMWUA Fiscal Year 2019 Draft Budget

7. Consultant Agreement with The Aarons Company

8. Agreement for Financial and Accounting Services

9. Agreement for Communication Services

C. Executive Director’s Report

D. Future Agenda Items

E. Adjournment *The order of the agenda may be altered or changed by the AMWUA Board of Directors.

More information about AMWUA public meetings is available in the AMWUA office, online at www.amwua.org/what-we-do/public-meetings, or by request.

AGENDA ITEM #1

BOARD OF DIRECTORS MEETING MINUTES

April 26, 2018 VOTING MEMBERS PRESENT

Mayor Jim Lane, President, Scottsdale Councilmember Eddie Cook, Vice President, Gilbert Mayor Cathy Carlat, Secretary-Treasurer, Peoria Councilmember Pat Dennis, Avondale, via teleconference Councilmember Lauren Kuby, Tempe, via teleconference Councilmember René Lopez, Chandler Councilmember Joanne Osborne, Goodyear Councilmember Kevin Thompson, Mesa Vice Mayor Thelda Williams, Phoenix

VOTING MEMBERS NOT PRESENT—EXCUSED

Councilmember Bart Turner, Glendale OTHERS PRESENT

Barry Aarons, The Aarons Co. Sam Jaskolski, AMWUA Anthony Alejandro, Peoria Pat Kossan, AMWUA Cindy Blackmore, Avondale Elise Kulik, The Aarons Co. Rob Bohr, Goodyear Brian Payne, AMWUA Eric Braun, Gilbert Stuart Peckham, SRP Cynthia Campbell, Phoenix Jessica Perry, Goodyear Gregg Capps, Chandler Diana Piña, AMWUA Alan Dulaney, Peoria Kathy Rall, Scottsdale Kathy Ferris, AMWUA Javier Setovich, Goodyear Brett Fleck, AMWUA Tony Staffaroni, CAP David Iwanski, AZ Water Association Warren Tenney, AMWUA Lacey James, Avondale Carol Ward-Morris, AMWUA

A. Call to Order

Mayor Lane called the meeting to order at 11:09 a.m.

April 26, 2018 – AMWUA Board of Directors Meeting Minutes Page 2 of 5

B. General Business – Items for Discussion and Possible Action

1. Approval of the Minutes from the March 22, 2018 Meeting

Upon a motion by Mayor Carlat and a second by Vice Mayor Williams, the AMWUA Board of Directors unanimously approved the March 22, 2018 meeting minutes.

2. Next meeting scheduled: Thursday, May 24, 2018, 11:00 a.m., in the AMWUA office

3. 2018 Legislative Update

Mr. Tenney stated that expectations for any significant water legislation to pass are low, particularly as the Legislature is focused on the budget and education issues. Mr. Tenney reported that since the last AMWUA Board meeting, there has been an effort to address issues with the Central Arizona Water Conservation District’s (CAWCD) claim to sovereign immunity. He said meetings between the Governor’s Office and CAWCD have been held but nothing has materialized from those meetings. Mr. Tenney reported that Legislative Council recently issued a legal opinion that the Arizona Department of Water Resources (ADWR) does not have authority to forbear water. He said ADWR’s legal counsel immediately issued a response stating that Legislative Council was erroneously incorrect, citing three cases in which the Legislature has granted ADWR forbearance authority, the most recent having been last year. Mr. Tenney stated that on Tuesday, AMWUA attended the Arizona Capitol Times’ Morning Scoop meeting which was titled, “Troubled Waters.” He said it was clear from Senator Griffin and Representative Bowers, who were participating on the panel, that sovereign immunity is not viewed as a priority for them, nor are Colorado River issues. Regarding Colorado River issues, Mr. Tenney reviewed CAWCD’s expressed concern about conserving too much water in Lake Mead and argument that the water level must be kept within a “sweet spot” to generate allowable annual releases from Lake Powell to Lake Mead. He then discussed that CAWCD’s promotion of the “sweet spot” directly counters ADWR’s position as the lead on Colorado River issues. Mr. Tenney stated that the Upper Basin states found CAWCD’s messaging inflammatory and dismissive of collaborative efforts to save water. He said the Upper Basin states wrote a letter to CAWCD addressing their concerns with CAWCD’s statements. He noted that Denver Water issued a separate letter stating it is looking to pull out of contributing to the System Conservation Pilot Program; Pueblo Colorado issued a separate letter as well, officially withdrawing from the System Conservation Pilot Program. Mayor Lane asked if there is any indication from the Governor’s Office as to what the plan will be for next year to address CAWCD’s claim to sovereign immunity. Mr. Tenney said


he has not directly heard of any plans moving forward other than the ADWR Director stating that he does not want to repeat the same process as that of summer 2017. Mr. Aarons stated that water legislation was not completely fleshed out in time for the 2018 Legislative Session and there was a lack of time and understanding from the legislators to be able to fully comprehend water issues. He noted that upcoming elections will have an impact on what AMWUA’s and the Governor’s effectiveness will be next legislative session. He said AMWUA will refine its approach once it is clear what the election results are and who the different committee chairs will be. Mayor Lane, Mr. Aarons, and Councilmember Lopez discussed that AMWUA needs to regroup, rebuild coalitions, and talk with ADWR in preparation for the next legislative session. Mr. Aarons added that in the current environment with thousands of protestors at the Capitol for teacher pay, it would be difficult to explain water issues to legislators. He said standing down right now is not a bad thing because we are not making enemies. He also emphasized the importance of using the time between legislative sessions to meet with legislative candidates and educate them on water issues before they have a bias on the issue. Mayor Carlat asked if by standing down, we run the risk of the water conversation being changed and no longer aligning with AMWUA’s priorities. Mr. Aarons did not express concern and said the people at the epicenter of the conversation know the priorities in water. He added that it would be helpful to remind urban legislators from Maricopa, Pinal, and Pima counties that the vast majority of Central Arizona Project (CAP) customers’ concerns are not being discussed and that AMWUA represents the largest population of those concerns. Councilmember Osborne echoed Mr. Aarons statement about the weight AMWUA’s customers hold. Mayor Lane noted that AMWUA’s priorities are not just what the organization wants but are beneficial to the State as a whole. Ms. Ferris stated that it is clear that the entire water community does not support sovereign immunity for CAWCD; AMWUA is not alone on this issue. She noted that Senator Griffin called for “win-win” legislation; however, there is no win-win solution on sovereign immunity because it is a black and white issue. She said the legislation that was put forth this session with proposed comprises would have implied that CAWCD does have sovereign immunity and would open the door for other Title 48 Districts to claim sovereign immunity. She said it is better to have no legislation than bad legislation. Mayor Lane agreed and said AMWUA will hold its position any time sovereign immunity and CAWCD comes up and invite others to join. Councilmember Cook asked how AMWUA can help the perception of ADWR, so the Department is seen as the authority on Arizona water and legislators can go to ADWR as the source. Mr. Tenney said one way to help would be for AMWUA to continue to work on strategies with its members’ intergovs to help elevate the importance of Colorado River issues, so the coordinated voices and consistent message provide support.


Mr. Aarons and Mayor Lane discussed the importance of the Central Arizona Project (CAP) to the State and respectfully disagreeing because the intent is not to destroy the CAP or undermine its work but rather to help. Vice Mayor Williams agreed.

4. Update on Water Quality Standards for Non-Project Water

Mr. Payne shared an overview on the status of the water quality standards for non-project water efforts. He reviewed a timeline of the stakeholder proposal process, an overview of the stakeholder proposal and the CAWCD staff proposal, as well as the points to resolve between the two proposals: equity and certainty versus flexibility; delivery standard versus introductory standard; modifying standards for small projects; Southern Arizona and Salt River Project’s (SRP) proposed project; and frequency of review standards. He said the next steps include another meeting among stakeholders, CAWCD, and the Bureau of Reclamation; CAWCD Task Force meeting(s); CAWCD Board recommendation; and the Bureau of Reclamation process and decision. Mayor Lane and Mr. Payne discussed concerns about strict introductory standards that could impose a lot of costs. Mayor Lane asked if these induction standards are related to the Environmental Protection Agency’s (EPA) induction standards on blending water. Mr. Payne said CAP is not currently a Water of the United States subject to EPA Clean Water Act regulation, an issue which CAP staff is working on with outside legal counsel. Mayor Carlat and Mr. Payne discussed that Southern Arizona stakeholders are very concerned with public perception of water, especially CAP water, so they don’t feel they can risk a flexible approach that Central Arizona stakeholders are looking for. Councilmember Lopez and Mr. Payne discussed scenarios of different introductory water qualities. Mr. Payne reviewed the Central Arizona stakeholder’s flexibility approach versus CAWCD staff’s proposal which focuses on a stricter introduction standard. He said the approach that is chosen will determine ultimate treatment and cost that project participants will have to incur up front.

5. AMWUA Fiscal Year 2019 Preliminary Draft Budget

Mr. Tenney reported that the Fiscal Year 2019 preliminary draft budget shows an increase of $48,748 from the current budget, which is a 3.61% increase. He noted that no carryover from the Fiscal Year 2018 budget is anticipated, which equates to a $62,618, or 4.69%, increase for the total assessment of members. He said the preliminary draft budget included in the meeting packet, along with the information summary, provide detail and summarize each line item noting any changes from last year’s budget. Mr. Tenney stated that this preliminary draft budget was presented to the AMWUA Management Board at its April 11th meeting. He said the Fiscal Year 2019 draft budget


will be presented to the AMWUA Management Board in May for consideration to recommend adoption to the AMWUA Board of Directors on May 24th. There were no questions or comments raised.

C. Executive Director’s Report

Mr. Tenney reported that AMWUA is discussing with the Water Resources Advisory Group (WRAG) to develop fundamental principles that would be critical for a recovery implementation plan. He said working with ADWR and CAP on a recovery plan is a key part of AMWUA’s recently adopted Annual Action Plan. Mr. Tenney stated that SRP had a meeting last week with the water community to review SRP’s communication message in response to the extra dry winter to ensure there is a consistent message that emphasizes that the utilities are prepared for drought and there is no need for alarm. He said AMWUA reviewed its own communication messages regarding drought with the Conservation Committee and WRAG. He noted that AMWUA is coordinated with ADWR and SRP and is ready to respond to any media inquiries. Mr. Tenney reported that recent attempts for congressional funding for the White Mountain Apache Tribe Water Settlement passed in the House but failed in the Senate last week. Mr. Tenney stated that AMWUA’s Finance Group met last week and discussed CAP rates, the AMWUA Budget, member updates, and information sharing. Mr. Tenney stated that AZ Water Association’s Annual Conference will be held May 2-4, 2018.

D. Future Agenda Items

There were no requests for future agenda items.

Mayor Lane recognized Councilmember Osborne’s efforts and service on the AMWUA Board of Directors and wished her good luck in her future endeavors as she runs for higher office. Councilmember Osborne thanked the AMWUA Board.

E. Adjournment

Upon a motion by Mayor Carlat and a second by Vice Mayor Williams, Mayor Lane unanimously adjourned the meeting at 12:17 p.m.

AGENDA ITEM #3

BOARD OF DIRECTORS INFORMATION SUMMARY

May 24, 2018

2018 Legislative Review STRATEGIC PLAN REFERENCE Objectives – Safeguard Water Supplies; Reinforce Groundwater Management; Prepare for Impacts of Drought & Shortage; Augment Supplies; Elevate the Benefit of Water Reuse; Minimize Financial Impacts Collaboration – Legislature; Arizona Department of Water Resources; Salt River Project; Central Arizona Project; Water Community SUMMARY The Arizona water community had anticipated that the 2018 legislative session would bring about significant legislation, but instead it failed to produce legislation addressing Arizona’s Colorado River and groundwater issues. During the legislative session, AMWUA worked primarily to prevent questionable legislation from passing. The last several weeks of the session focused on education funding and the state budget. The Legislature appropriated nearly $16 million for the Arizona Department of Water Resources (ADWR). This is roughly the same as last year’s appropriation. Furthermore, the environment budget reconciliation bill included an appropriation of $100,000 to allow ADWR to hire a consultant to study groundwater depletion in the Mohave County area. Parts of Mohave County have experienced significant groundwater depletion issues over the past several years. The Legislature also appropriated $13.5 million to the Water Quality Assurance Revolving Fund (WQARF), although this appropriation does not include funding through the State General Fund. With the Legislature designating an additional $2 million of non-appropriated funds for WQARF, the program will receive about $15.5 million. WQARF is a state-sponsored program to clean up hazardous soil and groundwater contamination that could potentially harm the public and the environment. The same day the legislative session ended, ADWR and the Central Arizona Water Conservation District (CAWCD) issued a joint statement that they “are committed to bringing DCP [the Drought Contingency Plan] to closure in Arizona by addressing a broad range of issues that respect the concerns of all stakeholders across the State. The discussions between ADWR and CAWCD are

May 24, 2018 – AMWUA Board of Directors Meeting – Agenda Item #3 Page 2 of 2

only the first step in a process that will expand to include participation by stakeholders.” The water community is waiting to see what action comes as a result of this joint statement. AMWUA staff and The Aarons Company have started to strategize for the 2019 legislative session. This includes looking at how AMWUA can focus on what is critically important to its members by working with a broad group of stakeholders to garner support for key initiatives. This will include educating and informing urban legislators about the importance of water resources for municipalities. LEGISLATION Bill explanations and dispositions for this past session can be found at amwua.org/where-we-stand#legislation. RECOMMENDATION It is recommended that the AMWUA Board of Directors discuss the 2018 legislative session.

http://www.amwua.org/where-we-stand#legislation

AGENDA ITEM #4


May 24, 2018

Status of Post-NGS Energy for CAWCD STRATEGIC PLAN REFERENCE Objectives – Safeguard Water Supplies; Minimize Financial Impacts Collaboration – Central Arizona Water Conservation District SUMMARY Earlier this month, the Board of the Central Arizona Water Conservation District (CAWCD) selected an energy portfolio to address the power needs for the Central Arizona Project (CAP). The CAWCD Board has sought to ensure that it is able to meet its energy needs post-2019, after the Navajo Generating Station (NGS) is scheduled to close. The Board selected an energy portfolio for the base load power needs of the CAP after a competitive process and thorough review of different portfolio options. CAWCD’s objective was to select a diversified portfolio that does not rely on a single generation source for more than 15 to 20 percent of the CAP’s energy needs. The selected portfolio provides a mix of energy sources including CAP’s existing Hoover power entitlement and energy from a to-be constructed solar facility. The portfolio meets all of CAP’s base load energy needs during the summer peak. The portfolio also offers a low per-unit cost to reduce the overall operational costs of the CAP. From 2009 to 2014, CAWCD and others fought against additional environmental regulations that would have impacted NGS. This was in an effort to ensure that NGS would remain a viable energy source for the CAP. Around 2014, the future for NGS took a 180-degree turn as it became evident to the owners that NGS was becoming less economical to operate. The primary reason was not environmental constraints but market-driven forces stemming from a significant change in the energy market away from coal generated energy to natural gas. In 2017, the owners of NGS (SRP, APS, Tucson Electric Power, and U.S. Bureau of Reclamation) decided to close the plant at the end of 2019, thus allowing for a transition period for the Navajo Nation and Hopi Tribe, who have historically benefitted from NGS operations. Recently, the Hopi Tribe and Peabody Western Coal Company (Peabody) have pressured the Bureau of Reclamation and Department of Interior to consider ways to keep NGS open based on the economic impacts of NGS closing. This month, the Hopi Tribe, Peabody, and others filed a


lawsuit against CAWCD claiming that CAWCD must continue to purchase its energy from NGS. In addition, draft federal legislation has been floated that would require CAWCD to continue purchasing energy from NGS post-2019 and would waive environmental requirements for NGS. These actions are intended to make NGS an attractive investment to potential buyers. NGS has created various challenges for CAWCD through the years. The most recent test is dealing with what appears to be the inevitable closure of NGS and the need for CAWCD to ensure it has a power supply to operate the CAP, which is critical to AMWUA members. RECOMMENDATION The AMWUA Board of Directors is encouraged to ask questions regarding post-NGS energy for CAWCD. Based on this month’s selection of a post-2019 energy portfolio, AMWUA staff recommends sending a letter to the CAWCD Board acknowledging CAWCD’s efforts to make certain that the CAP operates with a reliable, diverse, and cost-effective energy portfolio.

AGENDA ITEM #5


May 24, 2018

AMWUA Financial Statements Through Third Quarter Ending March 2018 STRATEGIC PLAN REFERENCE Operational Principles – Manage an Efficient and Effective Association SUMMARY The AMWUA Statement of Revenues and Expenses for the period July 1, 2017 through March 31, 2018, and the Balance Sheet dated March 31, 2018 are presented for your information. At the end of the third quarter, AMWUA is showing a year-to-date actual of $14,395 less than the year-to-date budget. This is primarily due to the timing of when the actual expenditures will occur as not all expenditures are made evenly throughout the fiscal year but are expected to be spent by fiscal year end. As indicated in the Preliminary Draft Budget that was presented in April, AMWUA anticipates that it will complete this fiscal year at budget. No carryover is anticipated. RECOMMENDATION

At its May 9th meeting, the AMWUA Management Board unanimously recommended that the AMWUA Board of Directors accept the quarterly financial statements as presented.

ATTACHMENTS

• Attachment A: Statement of Revenues and Expenses • Attachment B: Balance Sheet

ARIZONA MUNICIPAL WATER USERS ASSOCIATION S

Over(Under) ApprovedYear-To-Date Year-To-Date Year-To-Date Annual

Actual Budget Variance Budget

1,114,308.00 1,114,308.00 0.00 1,114,309.00 222,088.00 222,088.00 0.00 222,088.00

0.00 13,871.00 7,675.59 0.00 7,675.59 0.00

0.00 0.00 0.00 0.00 1,344,071.59 1,336,397.00 7,675.59 1,350,268.00

453,057.49 450,107.25 2,950.24 600,143.00 52,946.06 53,928.75 (982.69) 71,905.00 41,833.40 42,000.00 (166.60) 56,000.00 48,949.88 51,750.00 (2,800.12) 69,000.00

3,290.00 2,340.00 950.00 3,120.00 710.50 0.00 710.50 0.00

45,000.00 45,000.00 0.00 60,000.00 31,500.00 31,500.00 0.00 42,000.00

8,450.00 8,450.00 0.00 8,450.00 21,950.00 21,950.00 0.00 21,950.00

5,000.00 5,000.00 0.00 5,000.00 29,999.97 29,999.97 0.00 40,000.00 20,999.97 20,999.97 0.00 28,000.00

2,425.00 1,875.00 550.00 2,500.00 3,600.00 3,750.00 (150.00) 5,000.00

129,055.32 130,650.00 (1,594.68) 174,200.00 4,070.51 2,625.00 1,445.51 3,500.00 4,782.96 6,750.00 (1,967.04) 9,000.00 2,845.57 3,150.00 (304.43) 4,200.00 6,365.49 6,365.49 0.00 9,000.00 1,710.42 2,250.00 (539.58) 3,000.00

895.00 895.00 0.00 1,000.00 43.00 1,125.00 (1,082.00) 1,500.00

3,699.18 3,900.00 (200.82) 5,200.00 4,525.50 4,525.50 0.00 6,000.00 1,681.01 5,250.00 (3,568.99) 7,000.00 3,516.58 3,750.00 (233.42) 5,000.00

517.07 3,750.00 (3,232.93) 5,000.00 143.35 1,725.00 (1,581.65) 2,300.00 968.51 1,500.00 (531.49) 2,000.00 705.79 975.00 (269.21) 1,300.00

1,354.16 1,500.00 (145.84) 2,000.00 2,278.00 3,000.00 (722.00) 4,000.00

572.50 1,500.00 (927.50) 2,000.00 62,599.39 62,599.39 0.00 90,000.00

Total Operating Expenses 1,002,041.58 1,016,436.32 (14,394.74) 1,350,268.00

Reserve and Contingency Funds Summary:

Contingency Fund Balance on 3/31/18 $600,000

Reserve Fund Balance on 3/31/18 202,000 Total Contingency and Reserve Funds $802,000

Communication Services (Kossan Contract)

Audio/Visual Development

Water Conservation

IT Services

Outreach Efforts

Postage & Deliveries

Milage Reimbursement

Staff Development

Office Space - Lease

Consultant-Finance/Accounting

ARIZONA MUNICIPAL WATER USERS ASSOCIATIONStatement of Revenues and Expenses

(Actual to Budget Comparison)For Period July 1, 2017 through March 31, 2018

Continuing Professional Ed

Common Area MaintenanceTelephoneE-Mail/Webpage/InternetTravel/Conferences

Subscription & ReferenceDues & MembershipsInsuranceEquipment Maintenance

Copy Machine - LeaseComputer Hardware/SoftwareOffice SuppliesMeetings

Printing

Funding SourcesAssessment - WaterAssessment - Wastewater

Interest RevenuesOther Revenues

Net Revenues

Operating ExpensesPayroll (Salaries)

2017 Carryover Applied to Reduce Member Assessments

Cell Phone Allowance

Audit - Waste Water

Legislative Services (Aarons Company-Contract)

Temporary Services/Receptionist

Website Services

Deferred Compensation (ASRS Payments)Payroll Processing, Taxes and Insurance

Legal/Consulting Services (Ferris Contract)

Medical and Disability Insurance

Audit - Water

$500.00 65,229.62

427,936.63 814,489.11 16,284.50

A

$173,124.62 52,665.08

(164,559.11)(49,996.54)

A

$164,449.72 A

$1,500,123.63

3,211.76 144,271.68

A

$873,228.00 300,874.00 76,301.12

AA

$1,397,886.56

102,237.07

A$1,500,123.63

Compass Checking Compass Money Market

ARIZONA MUNICIPAL WATER USERS ASSOCIATIONBalance SheetAs of 3/31/2018

Assets

Current AssetsPetty Cash

Investment Account (LGIP)Prepaid Expenses

Total Current Assets $1,324,439.86

Property, Plant & Equipment

Net Pension Liability

Furniture & EquipmentLeasehold ImprovementsAccum Depreciation FurnitureAccum Depreciation Leasehold

Total Property, Plant & Equipment 11,234.05

Other Assets

$147,483.44

Total Assets

Deferred Outflow-Pension Resources

Total Current Liabilities

Total Liabilities and Equity

Total Liabilities

EquityFund Balance

Deferred Inflow-Pension Resources

Accrued Expenses

Long Term Liabilities

Deferred Revenues

Total Long Term Liabilities

Liabilities and Equity

Current LiabilitiesRetirees Excess Benefit Clearance

1,250,403.12

AGENDA ITEM #6


May 24, 2018

AMWUA Fiscal Year 2019 Draft Budget STRATEGIC PLAN REFERENCE Operational Principles – Manage an Efficient and Effective Association SUMMARY Attached is the draft Fiscal Year 2019 annual budget, which includes a summary page with comments to explain increases or decreases to particular line items. Development of the Fiscal Year 2019 budget was guided by AMWUA’s Strategic Plan and the Annual Action Plan for Fiscal Year 2019 approved last month. This budget allows AMWUA to continue to be a forum for its members to collaborate on water issues; to develop and advocate positions that safeguard our water resources; to promote continual planning and investment in water resources and infrastructure with the Legislature, Arizona Department of Water Resources (ADWR), Central Arizona Water Conservation District (CAWCD), Salt River Project (SRP) and other stakeholders; and to be at the forefront of demand management and water conservation efforts. This preliminary draft budget shows an increase of $48,748 (3.61%) from the approved Fiscal Year 2018 budget. The following summarizes the budget categories and provides explanation for line items that have an increase or decrease from last year’s budget. Administration – This includes salaries and Arizona State Retirement System (ASRS) retirement contributions, reflecting an increase of $16,267. What AMWUA is able to accomplish is directly linked to its staff and their time and effort to perform. The increase under Administration is primarily due to the following:

• Most of staff received a 2.5% performance award half-way through the Fiscal Year 2018, which is now reflected for the 12 months of the preliminary Fiscal Year 2019 budget.

• Position Increases – Salary increases are included for the Programs Assistant and for the part-time Receptionist. The increases to these positions are due to exemplary performance and to better reflect the duties of similar positions.

• Performance Awards – An up-to 3% performance award for each full-time employee, except the Executive Director, is recommended for employees who excel in their performance. The awards would occur half-way through Fiscal Year 2019.


Employee Benefits – This includes payroll processing, taxes, various insurances, and cell phone allowances. The main changes include:

• Payroll Processing and Taxes – The increase of $1,700 is due to the above-noted administration increase.

• Health Insurance – The $9,000 increase is due to increases from calendar year 2018 and projected for next calendar year. While the actual health costs for Fiscal Year 2018 are below budget, costs did increase in January 2018 by 13% that will carry forward into Fiscal Year 2019. Plus, our insurance broker is projecting another 18% increase for calendar year 2019.

• Cell Phone Allowance – The $2,580 increase is offset by the decrease of $2,500 for cell phone coverage under Occupancy Telecommunications under Occupancy. Part of staff had received a cell phone allowance and others received full coverage through an AMWUA-sponsored plan. A uniform practice was established for full-time employees to receive a cell phone allowance for using an employee-owned cell phone for business purposes.

Professional Services – This includes outside services that AMWUA utilizes throughout the year. The budget reflects an increase of $10,500 from last year. The main changes include:

• Legislative – A $5,500 increase is sought based on performance and to establish a new agreement. This amount had been less in last month’s preliminary draft budget. The higher amount had been targeted but had been on hold until it was known if the monies would be available after the selection of the new consultant for finance and accounting services.

• Financial and Accounting Services – The $4,000 increase is due to the selection of a new consultant to provide financial and accounting services. Audit – The $1,000 increase is under the current agreement with Heinfeld Meech.

Occupancy – These items are related to the leasing of office and meeting space for AMWUA and reflect a $1,300 decrease.

• Building Operating Costs – This line item is for AMWUA’s proportionate share of building common area maintenance costs and is non-negotiable.

• Telecommunications – This line item decreased due to the cell phone plan being discontinued shifting costs to the Employee Benefits line. The line also includes the office phone service.

• Email/Webpage/Internet Access – This line item increased by $200 due to anticipated actuals in Fiscal Year 2019.

Training and Travel – This category covers items involved with staff participating in conferences, workshops, and training along with the related travel expenses. This category includes no proposed changes. Capital Outlay – This category covers AMWUA’s primary capital property. There are no proposed changes.


Office Operating Expenses – These items cover AMWUA’s day-to-day office operating expenses. Each line item remains the same under this category except for a $10,000 increase due to one particular line item.

• Outreach Efforts – This line item was increased by $10,000. This is to continue to do outreach efforts particularly with the Legislature. Also, March 2019 is the 50th anniversary of AMWUA’s establishment and we would like to have funds available to assist with commemorating that accomplishment.

Water Conservation – This category remains at $90,000. One-third of the amount is committed to the contract with the University of Arizona for ongoing implementation of the Smartscape program in Maricopa County. The Smartscape program, a long-standing effort, provides training to landscape professionals in the proper design, installation, and maintenance of low-water-use landscape. ADWR provides matching funding for the program in the Phoenix Active Management Area (AMA). Another $30,000 is designated to develop the website and data management system for the Smartscape program, which the Conservation Committee has prioritized as the key initiative for this next fiscal year. Funds from Fiscal Year 2018 were set aside for this project. Tucson Water is also contributing funds to assist in consolidating the online management of the program across Maricopa and Pima counties. The remaining $30,000 supports and maintains various other Regional Conservation Program projects and efforts identified by the Conservation Committee. Members Assessments – The draft Fiscal Year 2019 budget is $48,748 more than the approved Fiscal Year 2018 budget or a 3.61% increase. Unlike the prior year, no carryover is anticipated from the Fiscal Year 2018 budget. This results in a $62,618 (4.69%) increase for the total assessments to members. The proposed increase is well within the range of past budget increases approved by AMWUA’s Board of Directors over the last twenty years. Largely due to rising health care costs and compensation increases necessary to remain competitive, it is anticipated that future budgets will see modest increases to ensure that AMWUA can continue to accomplish its mission. Since 1999, AMWUA’s Board has approved budgets between $1.213 million and $1.528 million. When adjusted for inflation (CPI-U index), the draft Fiscal Year 2019 budget is $461,000 lower than it was in 1999. Please note that this is the third budget to reflect the new allocation process for membership assessments, which was approved in 2015. One-half of the proposed water budget is allocated evenly among all the members and the other half is based on the proportion of each member’s population to the total population. The population figures are taken from the Maricopa Association of Governments (MAG) 2017 official population estimates. The wastewater portion of the budget continues to be allocated based on percentage of ownership at the 91st Avenue Wastewater Treatment Plant (WWTP).


RECOMMENDATION At its May 9th meeting, the AMWUA Management Board unanimously recommended that the AMWUA Board of Directors adopt the draft Fiscal Year 2019 budget as presented. ATTACHMENT

• AMWUA Fiscal Year 2019 Draft Budget

Draft Budget Fiscal Year 2019

ARIZONA MUNICIPAL WATER USERS ASSOCIATIONFiscal Year 2019

Draft Budget

ASSESSMENT SUMMARY

WATER WATER WASTEWATER WASTEWATER TOTAL TOTAL FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

CITY OF AVONDALE 68,481 72,736 68,481 72,736

CITY OF CHANDLER 95,657 102,032 95,657 102,032

TOWN OF GILBERT 93,965 100,117 93,965 100,117

CITY OF GLENDALE 93,613 99,026 14,335 13,910 107,948 112,936

CITY OF GOODYEAR 68,180 72,707 68,180 72,707

CITY OF MESA 130,249 139,136 31,733 30,792 161,982 169,928

CITY OF PEORIA 82,232 87,682 82,232 87,682

CITY OF PHOENIX 304,414 321,556 122,501 118,870 426,915 440,426

CITY OF SCOTTSDALE 93,652 99,472 21,992 21,340 115,644 120,811

CITY OF TEMPE 83,866 89,047 31,527 30,592 115,393 119,639

Total from Members 1,114,309 1,183,510 222,088 215,505 1,336,397 1,399,015

Other Funding Sources:

2017 Carryover applied to Members 2018 assessments 13,871 13,871

TOTAL All Sources 1,128,180 1,183,510 222,088 215,505 1,350,268 1,399,015

Note #1. The Assessment Structure is based on the following formula: 50% of the water portion of the budget is allocated equally with the remaining 50% based on population according to the MAG 2017 official population estimates.Note #2. Wastewater Assessments based on ownership in 91st Avenue Wastewater Treatment Plant @ 204.50 MGD.


Draft Budget

EXPENDITURE SUMMARY

2

WATER WATER WASTEWATER WASTEWATER TOTAL TOTAL FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

ADMINISTRATION 562,816 583,947 109,232 104,368 672,048 688,315

EMPLOYEE BENEFITS 107,807 120,827 20,313 20,573 128,120 141,400

PROFESSIONAL SERVICES 184,537 194,342 28,363 29,058 212,900 223,400

OCCUPANCY 134,877 135,854 56,023 53,746 190,900 189,600

TRAVEL,TRAINING & CONFER. 12,325 12,325 2,175 2,175 14,500 14,500

CAPITAL OUTLAY 9,380 9,501 1,820 1,699 11,200 11,200

OFFICE OPERATING EXPENSES 26,438 36,714 4,162 3,886 30,600 40,600

WATER CONSERVATION 90,000 90,000 90,000 90,000

TOTAL 1,128,180 1,183,510 222,088 215,505 1,350,267 1,399,015


Draft Budget

BUDGET COMMENTS

3

BUDGET BUDGET ESTIMATED BUDGETTOTAL TOTAL ACTUAL TOTALFY 17 FY 18 FY 18 FY 19

ADMINISTRATIONExecutive Director 135,000 137,700 137,700 143,208 Increase per Board's direction at 3/22/2018 meeting.Assistant Director 95,367 97,274 98,490 99,705 Increase per performance award effective 1/1/2018-based on performance evaluation.

Water Policy Analyst 73,000 74,460 75,391 76,322 Increase per performance award effective 1/1/2018-based on performance evaluation.Water Policy Analyst 73,000 74,460 75,391 76,322 Increase per performance award effective 1/1/2018-based on performance evaluation.SROG Coordinator 70,000 70,000 73,128 65,000 Actual is higher due to PTO payout upon retirement. New employee in positionOffice Manager/Executive Asst. 70,000 71,400 72,293 73,185 Increase per performance award effective 1/1/2018-based on performance evaluation.Programs Assistant 42,124 47,124 47,124 50,000 Adjusted to better reflect job description duties as compared to similar positions, and strong performance.Receptionist (part-time) 22,880 22,880 23,700 Increase due to simillar positions and performance.

Performance Awards 3,535 4,845 6,608 Up to 3% possible performance award for full-time employees after performance evaluation. Total Wages 562,026 600,143 602,397 614,049Deferred Compensation: Arizona State Retirement 67,946 71,905 71,000 74,266 Increase due to proposed performance awards.

Subtotal 629,972 672,048 673,397 688,315

EMPLOYEE BENEFITSPayroll Processing,Taxes, Insur 51,690 56,000 56,000 57,700 Increase required to meet projected salary increases. Medical, Dental, Life, Disability 69,000 69,000 66,000 78,000 Increase due to raise in health insurance costs and projected increases in 2019.Cell Phone Allowance 3,120 3,120 4,715 5,700 Increase due to full-time employees receiving an allowance

Subtotal 123,810 128,120 126,715 141,400

PROFESSIONAL SERVICESTemporary Services/Receptionist 22,880 711 -0-Website Maintenance 5,000 5,000 5,000 5,000 No change Audio/Visual Development 2,500 2,500 2,500 No changeIT Services 5,000 5,000 5,000 No changeCommunication 40,000 40,000 40,000 40,000 No change Legal/Policy Consulting 60,000 60,000 60,000 60,000 No changeLegislative 42,000 42,000 42,000 47,500 Increase adjustment for performance and proposed new agreement.Financial and Accounting Services 40,800 28,000 28,000 32,000 Increase to cover new firm or individual to perform services.Audit 29,500 30,400 30,400 31,400 Increase due to contractual agreement

Subtotal 240,180 212,900 213,611 223,400

OCCUPANCYOffice Space 172,074 174,200 174,200 174,200 No changeBuilding Operating Costs 3,000 3,500 3,500 4,500 Increase in AMWUA's proportionate share of building common area maintenance costs.Telecommunications 10,000 9,000 6,404 6,500 Decrease due to discontinuing coverage of cell phones for certain employees.E-Mail/Webpage/Internet Access 4,200 4,200 4,100 4,400 Increase to match anticipated actuals.

Subtotal 189,274 190,900 188,204 189,600

COMMENTS


Draft Budget

BUDGET COMMENTS

4

BUDGET BUDGET ESTIMATED BUDGETTOTAL TOTAL ACTUAL TOTALFY 17 FY 18 FY 18 FY 19

TRAINING AND TRAVELConferences/Travel 8,500 9,000 9,000 9,000 No ChangeMileage Reimbursement 3,800 3,000 3,000 3,000 No ChangeContinuing Professional Ed 1,200 1,000 1,000 1,000 No ChangeStaff Development 1,500 1,500 1,500 1,500 No Change

Subtotal 15,000 14,500 14,500 14,500

CAPITAL OUTLAYCopy Machine Expenses 5,200 5,200 5,200 5,200 No ChangeComputer/Equipment/Software 4,000 6,000 6,000 6,000 No Change

Subtotal 9,200 11,200 11,200 11,200

OFFICE OPERATING EXPENSESSupplies 6,000 7,000 7,000 7,000 No ChangeMeetings 5,000 5,000 5,000 5,000 No Change Outreach Efforts 5,000 5,000 15,000 Allows for outreach efforts AMWUA may pursue such as legislative forum and 50th AnniversaryCopy Paper & Supplies 1,500 -0- -0- Consolidated with SuppliesPrinting 2,000 2,300 2,300 2,300 No ChangePostage & Deliveries 2,500 2,000 2,000 2,000 No ChangeSubscription & Reference 2,000 1,300 1,300 1,300 No ChangeDues & Memberships 2,200 2,000 2,000 2,000 No ChangeInsurance-Public Liability 4,000 4,000 4,000 4,000 No Change and Property Damage Equipment Maintenance 6,500 2,000 2,000 2,000 No Change

Subtotal 31,700 30,600 30,600 40,600

WATER CONSERVATION 90,000 90,000 90,000Smartscape with Cooperative Ext. 30,000 Funding for Cooperative Extension to coordinate the Smartscape program in Maricopa County.Smartscape Website/Database 30,000 Funding for development of website for Smartscape program as key Conservation Committee Initiative.Projects and Publications 30,000 Funding for identified Regional Conservation Committee efforts.

Subtotal 90,000 90,000 90,000 90,000 No Change

Total Operating Expenses 1,329,136 1,350,268 1,348,227 1,399,015

FUNDING SOURCES2017 Carryover applied to 2018 assessments 13,871 11,8302015 Carryover applied to 2016 website develop. 25,000Carryover applied to members assessments 34,211

Member Assessments 1,294,925 1,336,397 1,336,397 1,399,015

Total Funding 1,354,136 1,350,268 1,348,227 1,399,015

COMMENTS


Draft Budget

EXPENDITURES DETAIL

5

WATER WASTEWATERBUDGET ESTIMATED BUDGET BUDGET ESTIMATED BUDGET BUDGET ESTIMATED BUDGETWATER ACTUAL WATER WASTEWATER ACTUAL WASTEWATER TOTAL ACTUAL TOTALFY 18 FY 18 FY 19 FY 18 FY 18 FY 19 FY 18 FY 18 FY 19

ADMINISTRATIONExecutive Director 134,946 134,946 140,343 2,754 2,754 2,865 137,700 137,700 143,208Assistant Director 97,274 98,490 99,705 97,274 98,490 99,705Water Policy Analyst 74,460 75,391 76,322 74,460 75,391 76,322Water Policy Analyst 74,460 75,391 76,322 74,460 75,391 76,322SROG Coordinator 1,400 1,463 1,300 68,600 71,665 63,700 70,000 73,128 65,000Office Manager/Executive Asst. 60,690 61,449 62,207 10,710 10,844 10,978 71,400 72,293 73,185Programs Assistant 40,055 40,055 42,500 7,069 7,069 7,500 47,124 47,124 50,000Receptionist (part-time) 16,016 16,016 16,590 6,864 6,864 7,110 22,880 22,880 23,700Performance Awards 3,970 6,205 875 403 4,845 6,608 Total Wages 503,271 503,201 521,493 96,872 99,196 92,556 600,143 602,397 614,049Deferred Compensation: Arizona State Retirement 59,545 58,795 62,454 12,360 12,205 11,812 71,905 71,000 74,266

Subtotal 562,816 561,996 583,947 109,232 111,401 104,368 672,048 673,397 688,315

EMPLOYEE BENEFITSPayroll Processing,Taxes, Insur 46,900 46,735 48,952 9,100 9,265 8,748 56,000 56,000 57,700Medical, Dental, Life, Disability 57,787 55,081 66,175 11,213 10,919 11,825 69,000 66,000 78,000Cell Phone Allowance 3,120 3,934 5,700 781 3,120 4,715 5,700 Subtotal 107,807 105,750 120,827 20,313 20,965 20,573 128,120 126,715 141,400

PROFESSIONAL SERVICESTemporary Services/Receptionist 426 284 711 -0-Website Maintenance 5,000 5,000 5,000 5,000 5,000 5,000Audio/Visual Development 2,500 2,000 2,500 500 2,500 2,500 2,500IT Services 4,187 4,000 4,242 813 1,000 758 5,000 5,000 5,000Communication 40,000 40,000 40,000 40,000 40,000 40,000Legal/Policy Consulting 60,000 60,000 60,000 60,000 60,000 60,000Legislative 42,000 42,000 47,500 42,000 42,000 47,500Financial and Accounting Services 22,400 22,400 25,600 5,600 5,600 6,400 28,000 28,000 32,000Audit 8,450 8,200 9,500 21,950 22,200 21,900 30,400 30,400 31,400 Subtotal 184,537 184,026 194,342 28,363 29,584 29,058 212,900 213,611 223,400

OCCUPANCYOffice Space 120,892 145,381 122,791 53,308 28,819 51,409 174,200 174,200 174,200Building Operating Costs 2,931 2,920 3,817 569 580 683 3,500 3,500 4,500Telecommunications 7,537 5,344 5,514 1,463 1,060 986 9,000 6,404 6,500E-Mail/Webpage/Internet Access 3,517 3,421 3,732 683 679 668 4,200 4,100 4,400 Subtotal 134,877 157,066 135,854 56,023 31,138 53,746 190,900 188,204 189,600


Draft Budget

EXPENDITURES DETAIL

6

WATER WASTEWATERBUDGET ESTIMATED BUDGET BUDGET ESTIMATED BUDGET BUDGET ESTIMATED BUDGETWATER ACTUAL WATER WASTEWATER ACTUAL WASTEWATER TOTAL ACTUAL TOTALFY 18 FY 18 FY 19 FY 18 FY 18 FY 19 FY 18 FY 18 FY 19

TRAINING AND TRAVELConferences/Travel 7,650 8,550 7,650 1,350 450 1,350 9,000 9,000 9,000Milage Reimbursement 2,550 2,850 2,550 450 150 450 3,000 3,000 3,000Continuing Professional Ed 850 950 850 150 50 150 1,000 1,000 1,000Staff Development 1,275 1,425 1,275 225 75 225 1,500 1,500 1,500 Subtotal 12,325 13,775 12,325 2,175 725 2,175 14,500 14,500 14,500

CAPITAL OUTLAYCopy Machine Expenses 4,355 3,120 4,411 845 2,080 789 5,200 5,200 5,200

5,025 3,000 5,090 975 3,000 910 6,000 6,000 6,000 Subtotal 9,380 6,120 9,501 1,820 5,080 1,699 11,200 11,200 11,200

OFFICE OPERATING EXPENSESSupplies 5,862 5,841 5,938 1,138 1,159 1,062 7,000 7,000 7,000Meetings 4,187 4,172 4,242 813 828 758 5,000 5,000 5,000Outreach Efforts 5,000 4,172 15,000 828 5,000 5,000 15,000Printing 1,926 1,919 1,951 374 381 349 2,300 2,300 2,300Postage & Deliveries 1,675 1,669 1,696 325 331 304 2,000 2,000 2,000Subscription & Reference 1,088 1,084 1,102 212 216 198 1,300 1,300 1,300Dues & Memberships 1,675 1,669 1,696 325 331 304 2,000 2,000 2,000Insurance 3,350 3,338 3,393 650 662 607 4,000 4,000 4,000Equipment Maintenance 1,675 1,669 1,696 325 331 304 2,000 2,000 2,000 Subtotal 26,438 25,533 36,714 4,162 5,067 3,886 30,600 30,600 40,600

WATER CONSERVATION 90,000 90,000 90,000 90,000Smartscape with Cooperative Ext. 30,000 30,000Smartscape Website/Database 30,000 30,000Projects and Publications 30,000 30,000 Subtotal 90,000 90,000 90,000 90,000 90,000 90,000

Total Operating Expenses 1,128,180 1,144,266 1,183,510 222,088 203,961 215,505 1,350,268 1,348,227 1,399,015

FUNDING SOURCES 2017 Carryover 9,872 1,958 13,871 11,830

Member Assessments 1,128,180 1,114,309 1,183,510 222,088 222,088 215,505 1,336,397 1,336,397 1,399,015

Total Funding 1,128,180 1,124,181 1,183,510 222,088 224,046 215,505 1,350,268 1,348,227 1,399,015

AGENDA ITEM #7


May 24, 2018 Consultant Agreement with The Aarons Company STRATEGIC PLAN REFERENCE Objectives – Advocate for Solutions; Reinforce Groundwater Management Collaboration – Legislature Operational Principles – Excel as an Expert and Resource SUMMARY AMWUA has utilized the services of Barry Aarons and Theresa Ulmer through The Aarons Company, LLC to advocate, monitor and evaluate legislation before the Arizona Legislature. Barry Aarons and Theresa Ulmer have represented AMWUA professionally and effectively at the Legislature. They are well respected at the Capitol and have provided valuable expertise and initiative to prevent or amend water-related legislation for the benefit of AMWUA’s members. Furthermore, AMWUA’s relationship with The Aarons Company has created operational efficiencies. Representation by The Aarons Company allows AMWUA to leverage relationships at the Legislature without retaining a full time in-house lobbyist. The current agreement with The Aarons Company expires on June 30, 2018. For the reasons noted above, AMWUA staff believes it would be beneficial to retain The Aarons Company to continue to represent AMWUA at the Legislature. We are proposing an agreement that would have The Aarons Company under contract through June 30, 2020, which would cover the next two legislative sessions. The monthly fee is increased to $3,958.33 based both on The Aarons Company’s performance and also the increasing hours spent on water legislation. It is anticipated that those increased hours will continue as AMWUA pursues a more proactive approach at the Legislature. It should be noted this is the first increase to the monthly fee since The Aarons Company began working with AMWUA four legislative sessions ago. The Fiscal Year 2019 budget includes funds for this agreement. AMWUA’s Legal Counsel has reviewed the agreement. RECOMMENDATION AMWUA staff recommends that the AMWUA Board of Directors authorize the AMWUA Executive Director to enter into the proposed agreement with The Aarons Company, LLC at a monthly rate of $3,958.33 from July 1, 2018 through June 30, 2020.


ATTACHMENT

• Consultant’s Agreement

AGENDA ITEM #8


May 24, 2018 Agreement for Financial and Accounting Services STRATEGIC PLAN REFERENCE Operational Principles – Manage an Efficient and Effective Association SUMMARY AMWUA has been utilizing the services of Don Sehorn to oversee the organization’s finances and accounting. Since Mr. Sehorn decided to not continue providing such services, AMWUA has sought to find a firm or person to perform financial and accounting oversight for AMWUA. AMWUA conducted a competitive process that included a request for proposals and interviews. The interview panel included Kevin Artz, Avondale’s Assistant City Manager and Chair of the AMWUA Management Board, Gina Kirklin, Scottsdale’s Enterprise and Finance Director, Don Sehorn, Diana Piña, and Warren Tenney. The interview panel has decided to recommend to the Board the firm Clifton Larson Allen. Clifton Larson Allen is a respected national firm with a strong presence in Arizona. Clifton Larson Allen is able to cover the various financial and accounting services that AMWUA requires. The letter of engagement covers the period between July 1, 2018 through June 30, 2019 with the opportunity to renew. The annual rate is $32,000 or $2,666.66 per month. The Fiscal Year 2019 budget includes funds for this agreement. AMWUA’s Legal Counsel has reviewed the letter of engagement. RECOMMENDATION It is recommended that the AMWUA Board of Directors authorize the AMWUA Executive Director to enter into a letter of engagement for financial and accounting services with Clifton Larson Allen at the annual rate of $32,000 from January 1, 2018 to June 30, 2019. ATTACHMENT

• Financial and Accounting Services Letter of Engagement

AGENDA ITEM #9


May 24, 2018 Agreement for Communication Services STRATEGIC PLAN REFERENCE Operational Principles – Facilitate our Strength in Numbers, Excel as an Expert and Resources SUMMARY In 2013, the AMWUA Board of Directors approved the development of marketing and public relations initiatives to promote the successes of the AMWUA members. This involved creating a blog on current water issues, establishing a robust social media presence, enhancing other media visibility, enhancing and coordinating messaging, and collaborating with AMWUA partners. It was concluded that this effort would best be led by a person or firm who could be hired on a consultant basis. Following a selection process, the communications contract was awarded to Pat Kossan. With Ms. Kossan’s efforts, AMWUA has expanded its audience through its website, weekly blog, and social media. The approach for successfully increasing our audience has involved collaboration among our members, consistent messages, finding opportunities to widen our audience, and embracing more fully the media. The contract with Ms. Kossan was renewed again for the period between July 1, 2017 and June 30, 2018. At this time, we are recommending extending the same contract for only six months. The reason for the six-month extension is because Ms. Kossan has informed AMWUA that she plans to no longer do consultant work after December 31, 2018. The contract objectives and cost of service remain the same. AMWUA’s Legal Counsel has reviewed the agreement. AMWUA will be assessing how best to proceed with its communications efforts as of January 1, 2019. RECOMMENDATION It is recommended that the AMWUA Board of Directors authorize the AMWUA Executive Director to extend the agreement for communications services with Pat Kossan for $20,000 through December 30, 2018. ATTACHMENT

• Communications Services Agreement

AGREEMENT

This Agreement, effective July 1, 2018, is between the Arizona Municipal Water Users Association, a non-profit corporation (“AMWUA”), and Pat Kossan, an independent contractor (“Consultant”). AMWUA and Consultant are referred to collectively as “the Parties.” AMWUA desires that Consultant perform certain communications services on behalf of AMWUA and Consultant desires to perform such services. Therefore, the Parties agree as follows: 1. Services.

a. Consultant shall provide the following communications services for AMWUA:

(1) Work to enhance AMWUA's social media presence. (2) Work to enhance AMWUA's visibility through print and broadcast media.

(3) Work to enhance AMWUA's website content and viewer interest. (4) Work to develop AMWUA’s weekly blog. (5) Such other communications services as AMWUA and Consultant shall

mutually agree.

b. Consultant shall work with AMWUA's Executive Director and other AMWUA staff as designated by the Executive Director in carrying out the services covered by this Agreement.

2. Hours. Consultant shall spend an average of twenty (20) hours per week in performing

the services contemplated by this Agreement. Consultant shall be available during the work week (Monday through Friday) to perform these services as determined by Consultant in consultation with AMWUA's Executive Director.

3. Office Space and Parking.

a. AMWUA shall provide office space to Consultant so that Consultant will be able to interact with the AMWUA staff and AMWUA members in developing the strategies for carrying out the services contemplated by this Agreement.

b. AMWUA shall provide paid parking for Consultant in the AMWUA employees'

parking facility.

4. Payments and Billing.

a. Consultant shall perform all services under this Agreement in an amount not to exceed $20,000.00.

b. Unless otherwise agreed upon by Consultant and AMWUA, AMWUA shall pay

Consultant $3,333.33 at the end of each month for the first five (5) months of the Agreement and $3,333.35 for the last month of the Agreement.

5. Independent Contractor. AMWUA and Consultant agree that Consultant is an

independent contractor, not an employee of AMWUA.

6. Term of Agreement. This Agreement shall terminate on December 31, 2018. 7. Modifications of Agreement. This Agreement constitutes the entire agreement

between the Parties regarding the services to be provided under this Agreement. This Agreement may be modified only by a written document signed by both of the Parties.

8. Governing Law. This Agreement shall be governed by and construed in accordance with

the laws of the State of Arizona. ARIZONA MUNICIPAL WATER USERS PAT KOSSAN, CONSULTANT ASSOCIATION By_____________________________ By____________________________ Warren Tenney, Executive Director Pat Kossan

Documents

Public Notice Pursuant to A.R.S. ARIZONA … · David Iwanski, AZ Water Association Warren Tenney, AMWUA Lacey James, ... Mr. Tenney said one way to help would be for AMWUA to continue