Regular Meeting 5/2/2025
2:00 PM
NSD Business Office
1326 W. Highway 92 #12
Bisbee, Arizona 85603

Minutes

The regular meeting of the Naco Sanitary District was called to order at 2:00 PM. Jesus Guerrero, Luis Silva, and Charles Behney were present. Stephen Dey was present by telephone. Andrew Foster was absent.

The minutes of March 7, 2025 were discussed. Mr. Dey had a draft version which contained typos that were corrected for the meeting. Mr. Dey made a motion to approve the corrected minutes, which was seconded by Mr. Behney. The motion to approve the minutes then passed unanimously.

Mr. Behney then reported on the Arizona Department of Environmental Quality Notice of Violation (NOV) issued on December 24, 2024. The Field Inspector, Xan McMacken closed the NOV, effective on April 1, 2025. Mr. McMacken could revisit this if other deficiencies came to his attention. Mr. Dey was concerned with the cattails in the lagoons. Mr. Behney stated that Mr. McMacken was concerned with the cattails and vegetation growing on the embankments and was less interested in the cattails growing in the lagoons. If the embankments are kept clear of vegetation, then NSD is in compliance.

Next the Greater Arizona Development Agency (GADA) application was discussed. Mr. Behney said that the GADA application would not be pursued, as GADA required repayment within a year. Other funding involving the USDA and WIFA were instead the focus for NSD funding for the Preliminary Engineering Review (PER). The USDA SEARCH grant would be upgraded to a Preliminary Planning Grant (PPG), which would increase the USDA grant from $30,000 to $60,000. The WIFA loan would be approximately $60,000 for a total of $120,000 for the PER. With set asides and forgiveness, the NSD may only need to repay $15,000 to $20,000 of the funding. NSD qualifies for Border Environmental Infrastructure Funds from the North American Development Bank (NADB) for between $8,000,000 and $16,000,000 for NSD systems. Mr. Dey stated that he was being ‘left out’, and was a signatory for USDA grants. Mr. Behney will ask USDA if Mr. Dey needs to sign any documents as RCAC advisors are completing the applications for NSD. Mr. Dey said that he would like Kimley-Horn to be informed about this. Mr. Behney stated that transparency is necessary for these bids.

Ms. Welz asked about the system and the needs for the grants. Mr. Behney stated that “We’re at the end of life of our system. It was built in 1980 and so we need to either replace, renovate or repair certain components and currently our wastewater treatment plant is grandfathered in (with ADEQ).

Mr. Dey said that there are concerns regarding the NSD collection system, as there are differences between the blueprints and the existing collection system. There may be septic tanks within the district that are not documented. Mr. Behney said the PER will assess the NSD system and its current conditions. Mr. Behney reported that all three monitor wells had been repaired and were now fully functional, “Silvic Electric replaced the control panel on monitor well number two. Tanner Well Services came out and renovated our monitor well number three, and then replaced the electric pump in monitor well number one. And we got new pressure tanks put into monitor well number one.”

NSD paid Tanner Well Service three payments: $3,342.32, $2214.00, and $4,1716. Heavy Equipment contractor Brent Weller has been paid $4990 and $3000 for roads, berms, embankments and debris piles. Mr. Weller still have work to complete on debris piles which will be disposed in an onsite landfill outside of the lagoons. Red flag days have delayed this work. NSD workers continue to cut mesquite and vegetation along the lagoons.

Mr. Dey had questions about the monitor wells that he would ask Mr. Tanner about. Mr. Dey wanted to know about chlorination of Monitor Well #1. Mr. Behney stated that our certified water tester had approved the chlorination procedure.

The flow-meter exceedence was traced by Mr. Willhoite and crew. They traced the most overflow to a manhole west of the Rogers property near the railroad tracks. Mr. Dey suggested that Hearthstone Water Company may be the source of the leaks. Mr. Behney had met with Hearthstone employees as the NSD crew had lifted and inspected over a dozen manholes to trace the leak.

For New Business, the tentative budget was reviewed and discussed. Mr. Behney reported that the tentative budget had increases of approximately 10%, due to inflation. Mr. Dey had concerns about discrepancies between projected income and expenditures. He suggested adjustments to revenue projections and cautioned about potential shortfalls. Mr. Dey stated that he would provide an alternate budget.

Mr. Behney said that the tentative budget would be published in the Bisbee Observer, and the finalized budget would be voted on after 30 days from the publication date. Mr. Dey made a motion to approve the tentative budget, which was seconded by Mr. Guerrero. The motion passed unanimously.

Next on the agenda, the Resolution 522025 for Debt Authorization was discussed. Mr. Behney presented Resolution 522025, authorizing debt for a water infrastructure project under the Arizona Water Infrastructure Finance Authority (WIFA). This will fund a preliminary engineering review, with repayment through property taxes. Mr. Dey made a motion to approve the resolution, which Mr. Behney seconded. The resolution was unanimously approved, with corrections noted.

Public Comments and Meeting Adjournment. Kimberly Welz asked about property tax revenue and the budget’s availability. Stephen Dey clarified that the property tax rate is flat, and offered to answer questions by email to avoid open meeting issues. Charles Behney apologized for not addressing Kimberly’s written questions immediately. Stephen Dey welcomed the new board member, Luis Silva. The meeting was then adjourned.

 

_______________________

 

Charles Behney, NSD Chair

 

SPECIAL MEETING
MINUTES
NSD Business Office
1326 W. Highway 92 #12
Bisbee, AZ 95620
September 12, 2022, at 10 PM

Minutes

NSD Chair Stephen Dey called the special meeting to order at 10:10 PM. Present: Charles Behney, Stephen Dey, Jesus Guerrero, Andrew Foster absent, Robert Orlowsky, excused. Ms. Monika Patience was also present.

Under old business, the minutes were revised from a special meeting to a regular meeting. Mr. Dey made a motion to accept the meeting, which was seconded by Mr. Behney. The minutes were approved unanimously.

Mr. Dey changed the order of New Business to discuss the rate increase before the letter to customers regarding rates. Mr. Dey stated that a rate increase was necessary to prevent NSD from running out of operating expenses. NSD barely has enough funds for basic needs, such as the office and testing. An increase of either $25 or $27 was brought up by Mr. Dey. Mr. Dey suggested a temporary rate increase for six months, and then the board would readdress it. Mr. Behney asked for the record that the rate increase was necessary due to past due accounts from residents and businesses not paying. Yearly customers would not be charged extra. Mr. Dey wanted to know how many monthly customers would be affected by the rate increase. Mr. Behney noted that 150 customers paying $25 a month would raise $3750 in revenues. Mr. Dey stated that tax revenues were soon to arrive, and some other customers were now paying. Mr. Behney suggested a rate of $25 while Mr. Dey considered a $27 increase.

Mr. Behney made a motion to raise the rates to $25 for six months, after which it will be revisited. Mr. Dey amended the motion to raise the rates to $25 a month for monthly customers, for six months, effective on November 1^st until May 30, 2023. Any customer can pay the yearly fee of $170 until November 1^st, 2022. After that it will rise in accordance with the new fees, to be readdressed in six months. The motion was seconded by Mr. Behney and then passed unanimously.

Mr. Behney read the rough draft of the letter to NSD customers. The board edited the letter and unanimously approved this draft for November:

Dear Naco Sanitary District Customers,

There are several Naco Sanitary District customers who have not paid for their sewer services and are past due.

These past due accounts owe the NSD approximately $30,000, as of September 9, 2022. Because of this, NSD will need to raise their rates to $25.00 for the next six months to continue to provide services for the Naco community.

Customers who are not paying will have their services discontinued, their water may be disconnected, and a lien may be placed on properties that have non-payment and past due accounts. Cochise County may condemn the property.

After six months, when the NSD accounts are no longer past due, the rates may be reduced again.

The former NSD Board of Directors received a Notice of Violation that caused the wastewater treatment plant to go out of compliance with the Aquifer Protection Permit. This cost NSD $15,000 to bring the WWTP back into compliance.

The required flowmeter was over twenty years old and was out of warranty and no longer functioned. NSD paid $20,000 for a new, automated flowmeter to remain in compliance with ADEQ.

As a result, reserve accounts were emptied, so NSD must raise rates and refill our reserve accounts for the community’s waste and sewer services.

Sincerely,

The Naco Sanitary District Board of Directors

Mr. Dey spoke about the past due letter that will need to be on a future agenda.

The meeting was adjourned at 10:35.

_____________________________________

Stephen T. Dey

Naco Sanitary District Chair October 4, 2022

NACO SANITARY DISTRICT
P.O. BOX 755
Naco, AZ 85620

MEETING MINUTES
NSD Business Office
1326 W. Highway 92 #12
Bisbee, AZ 95620
September 6, 2022, at 5 PM

Minutes

NSD Chair Stephen Dey called the special meeting to order at 10:06 PM. Present: Charles Behney, Stephen Dey, Andrew A. Foster, Jesus Guerrero, Robert Orlowsky, excused. Ms. Monika Patience was also present.

Mr. Dey made a motion to accept the minutes of the meeting of July 6, 2022 as written. The motion was seconded by Mr. Behney and was passed unanimously.

Under old business Mr. Behney spoke about the decision to write a letter on past due accounts to customers that was agreed during the prior meeting, and the need to finish it, despite unforeseen personal problems that postponed the writing.

Mr. Behney and Mr. Guerrero are translating and editing the English bylaws into Spanish, to provide to the community with the letter regarding past due accounts.

Mr. Dey reported that the owner of the RV Park has agreed to pay for one year in advance, based on 35 units average.

Mr. Behney will check the assessor and treasurer property records and make sure they are current with the NSD billing. Mr. Guerrero reported that a few customers complained about not having information on the bills, such as past due amounts.

Ms. Patience stated that currently the bills are for what is owed. Mr. Guerrero stated that one customer was not aware that they could pay in the office. Ms. Patience stated that past due amounts could be added to the bill, but it would take some time and effort for this.

Mr. Behney suggested placing this in the draft letter. Mr. Guerrero said he was still learning the system, yet a few people wanted to pay every six months.

Mr. Dey said that if they were renters, instead of owners, the landlords are responsible. Mr. Guerrero said that some renters were sending the money to their landlords, not NSD.

Mr. Behney will come in and look at the current status of the county assessor records, and line by line review the addresses in Quickbooks. Mr. Behney will also contract with Sparklight for an office phone, instead of Centurylink’s lack of service.

Mr. Dey stated that the prior NSD board had complicated these matters, as many customers never received a bill in years. The previous administration never gave NSD the phone code necessary for hearing voicemails on the NSD phone line.

Mr. Behney will audit the current past due bills, against the latest county assessor and treasurer records to find whether property owners are receiving the bills. Mr. Behney will look at the records, obtain new phone services and write a draft letter to the NSD customers.

Mr. Dey stated that raising the rates was missing from the agenda, and it was the most important matter for NSD. Mr. Behney suggested holding a special meeting to discuss and approve rates.

Mr Dey suggested sending the NSD bylaws to the customers with a bill stating past due amounts. There are no excuses for customers who refuse to pay. The RV wants to hook up more lots to NSD lines.

Mr. Behney inquired about holding a special meeting for 9/12/2022 to address the rate increases.

Next agenda item concerned writing a Request for Proposal for an attorney. Mr. Behney made a motion to fill out an RFP form to write a draft RFP for an attorney. Mr. Dey seconded, and the motion carried unanimously.

The agenda item to discuss and approve the Spanish translation of the NSD Bylaws was tabled for the next agenda.

Mr. Behney made a motion to write a draft letter with Ms. Patience for the NSD board to discuss and approve when written. Who is required to pay, why they must pay, and the consequences of not paying. Mr. Dey claimed some past due amounts may be waived, if proper. Mr. Dey said that if everyone was paying their bill, then NSD would have enough revenue to function without problems.

Mr. Behney recommended placing money in reserve accounts.

Mr. Dey made a motion for Mr. Behney to draft the letter, which was seconded by Mr. Behney. The motion passed unanimously.

Mr. Behney suggested that the Chair call a special meeting.

Mr. Dey announced a special meeting on September 12, 2022 at 10PM to discuss and approve rate increases, and a letter to NSD customers.

The meeting was adjourned at 10:40.

_____________________________________

Stephen T. Dey

Naco Sanitary District Chair September 12, 2022

 

NACO SANITARY DISTRICT
SPECIAL MEETING MINUTES
July 27, 2021, at 6:00 PM
3853 S Towner Avenue
El Centro Community Center
Naco AZ 85620

The meeting was called to order at 6:00 PM. Present: Charles Behney, Stephen Dey, Andrew A. Foster, Robert Orlowsky, excused.

OLD BUSNESS

NSD Chair Stephen Dey reported on continuing efforts to remediate the WWTP vegetation and other issues of non-compliance. NSD hired a crew from Verhelst House which has been cutting down trees and weeds, the lagoons are all flowing well after the Vac-Truck maintenance with the City of Bisbee and City of Douglas site operators.

NEW BUSINESS

Mr. Dey spoke about the ongoing efforts to hire a site operator including email solicitations, phone calls and advertisements. After meeting with Ronald L. Jacobsen, a Grade 4 site operator in charge of the San Jose WWTP, Mr. Jacobsen accepted the offer to become NSD site operator, for a salary of $2000 a month.

Mr. Jacobsen has forty years of experience. He has the expertise to return NSD’s WWTP to compliance with ADEQ.

Mr. Behney made a motion to hire Mr. Jacobsen for $2000 a month, effective on August 1^st. NSD’s attorney should assist in drafting a contract. Mr. Foster seconded the motion.

The motion was passed unanimously.

Mr. Dey made a motion to adjourn, which Mr. Behney seconded. The motion passed unanimously. The meeting adjourned at 6:04 PM.

Minutes Approved on August 3, 2021.

Stephen T. Dey

Naco Sanitary District Chair August 3, 2021