MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, March 9, 2015
HOPI CONFERENCE ROOM
11000 N. LA CA√ĎADA DRIVE
 
 
 
CALL TO ORDER - AT OR AFTER 6:00 P.M.

Chair Davis called the meeting to order at 6:00 p.m.

ROLL CALL

PRESENT:
Richard Davis, Chair
Richard Reynolds, Vice Chair
Javier Arriaga, Commissioner
Anne Campbell, Commissioner
Winston Tustison, Commissioner
Shanna Weagle, Commissioner

STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
David Ruiz, Engineering Division Manager
Robert Jacklitch, Project Manager

CALL TO AUDIENCE - At this time, any member of the public is allowed to address the Water Utility Commission on any issue not listed on today’s agenda.  Pursuant to the Arizona Open Meeting Law, individual Commissioners may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers.  However, the Water Utility Commission may not discuss or take legal action on matters raised during "Call to Audience."  In order to speak during "Call to Audience" please specify what you wish to discuss when completing the blue speaker card.

Oro Valley resident Art Weise
Spoke on Oro Valley's population growth estimates in relation to the water supply and to either allow or limit further housing developments.

Mr. Saletta gave a brief overview regarding the Town's current water service area and the prospect for meeting demand for additional 4,000 service units in the future. There is sufficient CAP water to supply our current water service area and we also have the possibility of acquiring new renewable water supply.

1.

APPROVAL FEBRUARY  9, 2015 MINUTES


MOTION: A motion was made by Commissioner Arriaga and seconded by Vice Chair Reynolds to approve the February 9, 2015 minutes.

MOTION carried, 6-0.

Click here for item 1

2.

DISCUSSION AND POSSIBLE ACTION REGARDING APPROVAL OF THE 2015 WATER UTILITY COMMISSION ANNUAL REPORT    (P. Saletta)


Click here for item #2

Mr. Saletta gave a Power Point presentation on the 2015 Water Utility Commission Annual Report and reviewed several of the sections. 

Mr. Saletta mentioned that he had received several comments from Commissioner Weagle, Commissioner Arriaga, and Chair Davis. He discussed many of the changes with the Commissioners and will  incorporate several of them into the report.

A discussion occurred regarding water usage, the annual groundwater sustainable rate.

Staff requested that the Commission approve the 2015 Annual Report based on the Power Point presentation with the incorporation of the Commissions comments and changes. If approved, the Annual Report will go to Council for acceptance at the April 1 meeting.

Vice Chair Reynolds suggested the Water Resources subcommittee meet to discuss the groundwater sustainable rate and the differences between paper water and wet water.

Chair Davis entertained a motion to approve the 2015 Annual Report.

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Campbell to approve the Water Utility Commission Annual Report dated April 2015 as amended with the incorporation of the Commission comments and revisions.

MOTION carried, 6-0.

3.

DISCUSSION REGARDING THE GROUNDWATER PRESERVATION FEE AND CASH RESERVE POLICY      (Commissioner Tustison and S. Seng)


Click here for item #3

Commissioner Tustison opened the discussion indicating that the Finance subcommittee met February 24 to discuss the Groundwater Preservation Fee (GPF) and Cash Reserve Policy.

Ms. Seng gave a Power Point presentation on the GPF and Cash Reserve Policy. The GPF was established 2003 to generate revenue to pay for debt associated with the reclaimed water system and pay for CAP water or any renewable water project. The fund would not be used to pay for any maintenance or operating costs.
-Reviewing the GPF at the request of Town Council  -Financial scenarios will be developed to evaluate different uses of GPF revenue and rates for the GPF.  -Potential revision to the policy on GPF revenue.

-Cash Reserve Policy: Existing cash reserve policy is vague  -Changes in GPF will impact the Utility's cash reserve  -Appropriate time to consider amending the current cash reserve policy. 


Schedule
2/24 Finance Subcommittee meeting
3/31 Finance Subcommittee meeting
4/13/15  WUC meeting
5/08/15 Finance Subcommittee meeting (tentative)
5/11/15 WUC meeting
6/03/15  Town Council meeting
No action was taken or required on this item.

4.

DISCUSSION REGARDING POTABLE AND RECLAIMED WATER SYSTEM REPORT            (David Ruiz)


Click here for item #4

Mr. Ruiz reported the following:
-Total Annual Water Production  - February 2015
-2014-15 Monthly Water Production Report 
-Daily Demand Operations Report & Daily Precipitation: February 2015 
-2014-15 Monthly Reclaimed Water Deliveries  
-Reclaimed Water System Deliveries: February 2015
Some of the graphs needed to be edited and will be revised and emailed to the Commission.

5.

TOWN COUNCIL MEETINGS/COMMUNICATIONS        (Councilmember Hornat)


Councilmember Hornat reported on the recent Council meetings: 
2/18: Zoning Code Amendment for Window Sign & Balloon Standards, Status on the purchase of El Conquistador Golf and Country Club
2/04: Pima County Bond Issue, Oro Valley Financial Fiscal status
-Revisions to Oro Valley Zoning Code, Oro Valley Market Place Sign code 
-Setting of Parks and Recreation fees

6.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee    (Commissioner Tustison)


Commissioner Tustison had no report.

b.

Conservation Subcommittee  (Commissioner Davis)


Commissioner Davis had no report.

c.

Water Resources Subcommittee            (Commissioner Reynolds)


Commissioner Reynolds had no report.

7.

STAFF REPORTS


a.

Customer Service Report       (S. Seng)


Click here for item 7a

Ms. Seng reported the following:
-Total Metered Connections as of 2/28/15:  19,117
-Projected Meter Installations for FY 14-15:  211
-Actual New Meter Installations as of 2/28/15:  FY 14-15:  96   Month of February: 5
-Actual EDU's as of 2/28/15:  213      Month of February: 8
-Projected EDU's for FY 14-15:  345

-AMI Meter Installations FY 14-15:  3,353
-Total AMI Meter Installations: 10,032  

-Water Conservation Audits as of 2/28/2015:  FY 14-15: 82   Month of February: 7
-Total audits completed from inception:  FY 14-15:  1,882 

Tech-Related Customer Service Facts as of February 28, 2015 
-ACH Customers: 4,365 (23%),  E-Bill Customers: 1,902 (10%)
-Registered Accounts AquaHawk:  916  (9%)

b.

Capital Projects          (B. Jacklitch)


Mr Jacklitch reported on:
Capital Program
-Installation of 12-Inch water main in Countryside area - Hartman Lane  Completion expected in June of 2015 

Design Projects 
-Relocation of existing reclaimed water main Tangerine Rd. This project is part of the RTA Tangerine Road Project. 
-Lambert Lane: Roadway work will lower hill by Walgreens and widen roadway to 4 lanes (2 lanes in each direction). Installation of approximately 3,000 feet of 12-inch potable water main is required for the relocation of this roadwork
-Energy Efficiency program: Continue installation of energy efficient boosters and wells
-Naranja west of La Cholla CAP 12-inch main crossing is complete. 
-Arizona Power Authority 2017 Reallocation: The application process will open April 3. The application must be submitted no later than April 24th.

8.

DIRECTOR’S REPORT    (P. Saletta)


a.

Colorado River Streamflow and Snow Reports


Click here for item 8a

Mr. Saletta reported on:
-Colorado, Rio Grande, and Arkansas River Basins Snowpack: March 1, 2015
-Colorado River Water Supply Report:  Lake Powell, Lake Mead  41.6% 
-Arizona Snow Water Equivalent
-Colorado Snow Water Equivalent
-Utah Snow Water Equivalent
-Wyoming Snow Water Equivalent

b.

Upcoming Meetings


3/18: Town Council meeting
4/01: Town Council eeting
4/13:  WUC meeting 
-Water Resources Center Annual Conference: June 9-10 

FUTURE AGENDA ITEMS

-Review: Water Policies Article 3-6 Oro Valley Water Utility Commission - Town Code: Article 15-4  Overview of Water Utility Commission. (Commissioner Weagle)

Mr. Saletta mentioned it would be a good approach to handle the Water Utility Commission and Town Code Policies and Annual Report issues at the Water Resources Subcommittee level. The Water Resources subcommittee can present their comments back to the Water Utility Commission.

-Water Utility field trip: Visit Potable & Reclaimed Water site SCADA program,  Reclaimed  pumping station, Naranja Reservoir and other local field sites   Date: April 13th    Time: 4:00 pm - 6:00 pm.
Commissioner Campbell mentioned she may not be available. Mr. Saletta will arrange a separate tour at another time.

CALL TO AUDIENCE -

There were no speakers.

NEXT MEETING:  APRIL 13, 2015  LOCATION: HOPI CONFERENCE ROOM

ADJOURNMENT: 7:45


MOTION: A motion was made by Commissioner Weagle and seconded by Commissioner Arriaga to adjourn the meeting.

MOTION carried, 6-0.