SPECIAL MEETING
MINUTES
NSD Business Office
1326 W. Highway 92 #12
Bisbee, AZ 85620
Minutes for May 19, 2023
The Special Meeting was called to order at 3:08 PM. Present at Roll Call were Angelica Coronado, Jesus Guerrero, Stephen Dey, Andrew Foster and Charles Behney.
First agenda item was old business. Mr. Dey asked if the minutes for February 2, 2023 had been read by the board. No changes were needed, so the minutes were unanimously approved as submitted.
Under new business, Mr. Behney discussed the Naco Community Wetlands Mitigation Plan of 2018 that Mr. Dey and Mr. Behney had submitted to NADB, ADEQ, the City of Bisbee, Cochise County and other stakeholders as concerned citizens. In reply, a letter from Ms. Amanda Stone of ADEQ written on June 28, 2018 was read to the board regarding binational connnections to Naco, Sonora and the requirements from ADEQ and other stakeholders for transboundary connections. NSD has fifty acres available to the region for aquifer protection, recharge and sewage system overflows. NSD will partner and cooperate with Bisbee and Naco, Sonora for future expansion.
Mr. Behney also spoke about an agreement between NSD and OOMAPAS to connect Naco Sonora to the NSD system for emergencies and sewer system overflows that was signed on May 9, 2000 by NSD President Ernest Rogers. This agreement was never completed, although the NSD WWTP was built as a regional plant for Bisbee and the Naco Pueblo on both sides, per IBWC and EPA recommendations in 1978,
Mr. Behney reported that SAMS.GOV has approved our application for NSD, with the incorporation of NSD officially stated at March 31, 1971. SAMS.GOV tracks and audits federal grants and loans. NSD also has USDA grant writing status at Level 2 for Rural Development. NSD is in good standing with Arizona Water Infrastructure Finance Agency (WIFA) for loans.
NSD is positioned to form partnerships with Community Based Organizations (CBO)s for grants and other opportunities available to colonias.
NSD is meeting with EPA Border 2025 officials including NADB, ADEQ, EPA, CEA of Sonora, and CONAGUA on May 23 and 24, 2023 in Tubac to discuss transboundary water issues involving Naco.
Mr. Dey described the reserve accounts and their differences from the annual budget. The Emergency Reserve Account is for unexpected failures and emergencies regarding the NSD infrastructure. The Capital Reserve Account is to save for new construction, upgrades and improvements. The Operations and Maintenance Account is to provide operating funds, if revenues are not sufficient for the budget.
Mr. Behney reviewed the line items of the proposed budget. Mr. Dey explained that increasing the property taxes to replace the current billing will actually save the NSD and the billed customers money when the monthly bills are replaced by tax revenues, in the same way that the school district and the fire district are budgeted by taxes instead of bills.
Mr. Dey stated that the proposed $40,000,000 in the reserve account allows NSD to apply and administer grants up to that amount, and is necessary for the budget to have these proposed funds in order to receive grants and other funding up to that amount. It is a contingency that allows the county to receive grants for NSD.
Mr. Dey make a motion to accept the proposed budge with changes to the reserve account. Mr. Behney seconded the motion which then passed unanimously. The NSD will transition to a tax based revenue and replace the billing system with taxes.
At the next meeting, the proposed budget will be voted on to become the approved budget for FYI 2023-2024.
Mr. Dey gave the floor to Mr. Behney to discuss the Request for Information that NSD submitted to the EPA on April 9, 2023. Mr. Behney and Mr. Dey attended an EPA Border 2025 meeting in Sahuarita where an RFI regarding grants. Proposals for how to spend Inflation Reduction Act funds was solicitated.
The NSD RFI requests that EPA prioritize investing in mitigating wetlands and constructed wetlands along the transboundary border region with an emphasis on tribes and colonias.
Mr. Behney stated that the IBWC requested that the NSD be formed in 1963 as a regional sewage system for all three communities, Bisbee and the Naco Pueblo. Naco is the only border community that has no collaboration with IBWC and the EPA.
The NSD RFI proposes provide NSD’s fifty acres to 1) Connect emergency pipes to Naco, Sonora, 2) Connect Bisbee as a regional WWTP, 3) Connect FreePort McMoran wells to mitigate sulfate contamination to the sole source aquifer, creating a constructed wetlands with a recreational park for the local residents of Bisbee and the Naco Pueblo.
Regarding the next agenda item, to discuss and approve the participation and policies of Border 2025 regarding Naco, Arizona; Naco, Sonora and Bisbee, Arizona regional infrastructure and environmental goals. Mr. Dey made a motion to approve the participation and policies of Border 2025 regarding Naco, Arizona; Naco, Sonora and Bisbee, Arizona regional infrastructure and environmental goals, including partnering with community based organizations. Mr. Behney seconded the motion. Without further discusssion, the motion was passed unanimously.
Office Manager Monika Patience reported that cash flow was coming in, and revenues were positive. Angelica Coronado reported that 3000 customers are billed by the City of Bisbee. If Bisbee and Naco had a regional plant again, Bisbee would be able to lower their sewer bill.
The meeting was adjourned at 3:56 PM.
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Stephen T. Dey
Naco Sanitary District Chair *
NACO SANITARY DISTRICT
P.O. BOX 755
Naco, AZ 85620
520-353-4372