January 10, 2019


Chairman of the Board, Dick Drinen, called the meeting to order at 3:00 P.M.


1. Pledge of Allegiance:  


2. Roll call was taken:  Gail Van Deurzen and Len Friedlund were absent


3. Present:  Dick Drinen, Bob Timberman, Mike Sims, Robert Rose


A.  Administrative Information: 


5. Approval of Board minutes for December 6, 2018 & December 13, 2018


6. Correspondence: Survey for West Side, New permit for reuse water from city of Flagstaff.


7. Expenses Review:  No questions 


8. Legal Counsel: Draft for contract with Schuster & easements for Country Club for Prescott future connections at Navajo Rd.  Should not have any issue with road.


9. Operation Report: Bob asked about difference in effluent flow & influent


B. Unfinished Business:


10. Status of West Side I-17 sewer expansion: 

A.  Report on meeting with ADEQ and Munds Park RV Park:   No meeting

B.  Construction Status:  Working on pressure line over by Chevron.  Weather has been an issue.

C.  Building permit status (2):  Trying to finalize

D. Easement status:  Looks good.  County hopefully will approve.


11.  North Lodge update: 

A.  Conditional use permit status (landscaping):  Status is unknown.  County came to check but we haven’t heard back.

B.  Status of drainage way improvements in ADOT ROW:  Waiting for Spring probably


12.  Review audit for 2018 fiscal year July 1, 2017 – June 30, 2018 with Tim Hansen from Nordstrom & Associates CPAS: Audit looks at internal control.  Did not find any issues or weaknesses in internal control.  One recommendation about projects was fuel costs need to be capitalized.  Disclosure of pension liability estimates audit adjustments – did not have any disagreements with management – none.  No significant difficulties in doing audit.  Financial Statements are Balance sheet: most significant change in cash balance for restricted purposes.  Made WIFA payment June 28 (instead of July 1) which makes balance dramatically lower & also makes dramatic difference on WIFA loan balances. 


Pension liability went down.  Net position increased 350,000.  Unrestricted net assets decreased.  Overall decreased.  Operation expenses very comparable to last year.  Interest expense higher because of early WIFA payment.  Statement of cash flows affected by WIFA payment.  New disclosure on compensated absences.  Footnotes (16-17) explains cash & investments.  Post employment benefit disclosure.  Rate increase should help with next fiscal year.


13.  Status Navajo project for the Prescott’s:  Waiting for approval of easements for Country Club


C. New Business


14.  Motion to approve 2018 annual audit.  Mike moved 2nd Robert passed unanimously.

AYES:  Dick Drinen, Bob Timberman, Mike Sims, Robert Rose

NOES:  None


15.  Call to the public for non-agenda items – no action will be taken on any subject not on the agenda. (Limits to 5 minutes will be enforced)



Meeting Adjourned at 3:55 P.M.


Clerk of the Board




Mike Sims