MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, June 8, 2015
HOPI CONFERENCE ROOM
11000 N. LA CA√ĎADA DRIVE
 
 
 
CALL TO ORDER - 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

EXCUSED: Shanna Weagle, Commissioner

STAFF PRESENT:
Philip C. Saletta, P.E. Water Utility Director
Shirley Seng, Utility Administrator

Others: Councilmember Hornat

CALL TO AUDIENCE - Doug McKee Oro Valley resident will speak on item 2 after the presentation.

1.

APPROVAL  MAY 11, 2015 MINUTES


Click here for Item #1

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Tustison to approve the May 11, 2015 minutes.

MOTION carried, 5-0.

2.

DISCUSSION AND UPDATE ON THE "YOUR VOICE/OUR FUTURE"  PROJECT


Click here for Item #2

Ms. Nora Campbell from Planning & Zoning gave a Power Point presentation update regarding the release of "Your Voice/Our Future" General Plan public review draft. The Commission will be asked for their individual or collective comments due by July 31. Comments can also be emailed to Planning & Zoning via email. As residents comments can be provided through orovalley.opencomment.us. Ms. Campbell provided copies of the draft.

Oro Valley resident Doug McKee mentioned that the Commission should read the General Plan Environmental Goals on pages 35-40 (Chapters 4.4 - 4.7) and the Development section (Water Resources) page 76. He also discussed the groundwater level declines and State requirements.

No formal action was taken or required.

3.

DISCUSSION AND POSSIBLE ACTION REGARDING  THE CASH RESERVES POLICY              (Commissioner Tustison, P. Saletta)


Click here for Item #3

Commissioner Tustison mentioned that the Finance Subcommittee had worked on the Cash Reserves Policy for several months and  had made their recommendations.

Mr. Saletta gave a Power Point presentation and mentioned that the Cash Reserve Policy as well as the Groundwater Preservation Fee documents were emailed to the commission. At the May 21st Finance Subcommittee there was consensus that the policy needed to be updated and clarified and be commensurate with the current financial conditions.

Recommendation - The Finance Subcommittee recommends approval of proposed change and the Finance Director and Water Utility staff recommend approval of proposed change. If Commission approves the proposed change, it will be presented to the Town Council for their approval on June 17.

There was discussion regarding:
-Cash Reserve current 5% requirement of entire budgeted amount.

-Recommended increase in cash reserve requirement to 20% of the total of personnel costs, operations and maintenance costs and annual debt service.

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga to Recomend Approval to the Town Council to amend the Mayor and Town Council Water Policies Section A.1.d. to clarify, modify and update the cash reserve policy for the Water Utility's Operating Fund to be commensurate with the current financial conditions of the utility.

MOTION carried, 5-0.

4.

DISCUSSION AND POSSIBLE ACTION REGARDING THE GROUNDWATER PRESERVATION FEE AND POLICY CHANGES            (Commissioner Tustison, S. Seng)


Click here for Item #4

Click here for Item 4a Power Point

Commissioner Tustison indicated that a considerable amount of time was spent discussing the Groundwater Preservation Fees and Policies.

Ms. Seng gave a Power Point presentation and mentioned that the Groundwater Preservation Fee was established in 2003 to repay debt associated with capital projects needed to bring renewable water resources to the Town. No formal policy was ever written or included in the Mayor & Council Water Policies.

-Recommendation - The Finance Subcommittee and Staff recommend approval of the proposed policy. The Finance Subcommittee and Water Utility staff recommend reviewing the GPF rates with the next water rates analysis in the fall of 2015. If Commission approves the proposed policy, it will be presented to the Town Council for their approval on June 17.

There was discussion regarding:
-Outstanding debt related to reclaimed projects and GPF cash balance

-Tucson Water CAP water wheeling agreement and costs

-GPF/Impact Fee Fund payments for reclaimed debt and CAP water acquisition

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga to Recomend Approval to the Town Council to amend the Mayor and Town Council Water Policies to add Section A.1.g. to expand the use of the Groundwater Preservation Fee revenue to include costs to wheel CAP water to the Town. Commissioner Tustison further moved to recommend that analysis of the Groundwater Preservation Fee rates be reviewed with the next water rates analysis in the fall of 2015.

MOTION carried, 4-1 with Vice Chair Reynolds opposed.

5.

DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE JULY AND AUGUST WATER UTILITY COMMISSION MEETINGS                (Chair Davis)


Chair Davis mentioned that Council would not be meeting July or August therefore it was not necessary for the Commission to meet. The next scheduled meeting would take place in September. Chair Davis requested consensus from the Commission.

Commissioner Campbell thought it beneficial to meet to discuss "Your Voice/Our Future" General Plan and the Commission's mutual comments. Vice Chair Reynolds concurred.

Mr. Saletta said he would be out of Town in July but the Commission could still hold their meeting and a staff member would be available. It was discussed that the Commission hold a meeting specifically to discuss the "Your Voice/Our Future" project.

MOTION: A motion was made by Commissioner Arriaga and seconded by Vice Chair Reynolds to approve that the Water Utility Commission meet July 13 to discuss "Your Voice/Our Future" project recommendations and 
to cancel the August 10th meeting.

MOTION carried, 5-0.

6.

TOWN COUNCIL MEETINGS/COMMUNICATIONS          (Councilmember Hornat)


Councilmember Hornat reported on:
-5/20: Five-Year Financial Forecast through FY 2019/20    -Adoption of the Tentative Budget FY 2015/15 which passed with 4-3 vote. 
-O.V. Zoning Code Section 28.5.b.15 to allow illuminated window signs passed with a 5-2 vote.  -O.V. Zoning Code Section 28.6.B Relating to balloons 
-Personnel Policy 14- Overtime 
-Planning Division two year work plan & Long Range Plans FY 15-15 & FY 16-17 
-6/03: Adoption of the final budget for the Town FY 2015/16 passed with 4-3 vote.
-6/17: FY 15/16 Appropriation from the General Fund for Steam Pump Ranch and purchase of new backhoe. 
-Reconsideration relating to illuminated signs 
-Financial participation agreement between the Town and the Greater Oro Valley Chamber of Commerce
-Recall petitions were verified by the County

7.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee          (Commissioner Tustison)


Commissioner Tustison had no report.

b.

Conservation Subcommittee    (Commissioner Davis)


Commissioner Davis mentioned there was no meeting in June but the subcommittee will meet July 13, 2015.

c.

Water Resources Subcommittee              (Commissioner Reynolds)


Commissioner Reynolds had no report.

8.

STAFF REPORTS


a.

Customer Service Report       (S. Seng)


Click here for Item 8a

Ms. Seng mentioned that the Customer Service reports will be given on a quarterly basis.
-New Metered Connections & Service Units
-Projected Meter Installations for FY 14-15:  211
-Actual New Meter Installations as of 5/31/15: 137   Month of May: 13 
-Actual SU's as of 5/31/15:  271    Month of May: 13 
-AMI Meter Installations: FY 14/15: 5,598. This project is estimated to be completed by March 2016
-Water Conservation Audits: FY 14/15: 99  Month of May: 7  -Registered account in AquaHawk: 1,501

b.

Capital Projects            (P. Saletta)


Mr. Saletta covered the Capital Projects for Mr. Jacklitch. 
-Countryside Service Area - Water main replacement is 100% complete. Project schedule to close end of June.

Design Projects
-Tangerine Road - Potable water main relocation on Lambert Lane is ongoing. This is an RTA project. Coordinating the main relocation with DIS and the road widening project for improvements from Walgreens west to Rancho Sonora Drive.
-Naranja 12 inch water main - Design is ongoing. This is to convey potable CAP water to customers south on Naranja and to provide conveyance for a future CAP blending booster station. 
-Arizona Power Authority - The application has been submitted. A conference call took place with APA last month to confirm submitted data.

c.

Potable and Reclaimed Water System Report    (P. Saletta)


Click here for Item 8c

Mr. Saletta reported on: 
-Total Annual Water Production - Total Deliveries 2014  (3,933 AF) Total Deliveries 2015  (3,571 AF)

-Reclaimed Water Production - Year to Date as of June 5, 2015

9.

DIRECTOR’S REPORT      (P. Saletta)


a.

Colorado River Streamflow and Snow Reports


Click here for Streamflow and Colorado River Water Supply Report

Mr. Saletta reported on:
-Arizona Streamflow
-Colorado Streamflow
-Colorado Total Contents  Lake Mead & Lake Powell

-Colorado Current Snow Water Equivalent June 8, 2015
-Wyoming Current Snow Water Equivalent  June 8, 2015

b.

Upcoming Meetings


6/09-6/10: Water Resources Research Center Annual Conference in Phoenix.  Attendees: Commissioner Campbell, Councilmember Hornat  Staff: P. Saletta 6/10/2015 
6/17:  T.C. Meeting - Water Utility agenda item: Resolutions on Groundwater Preservation Fee & Cash Reserves Policy 
7/01: T.C. meeting - Water Utility agenda item: Operational agreement with Marana regarding the pipeline relocation for Tangerine Rd.
7/13: WUC meeting to discuss "Your voice Our Future" project. July and August subcommittee meetings to be determined. 
9/02: T.C. meeting

FUTURE AGENDA ITEMS - No future agenda items were noted.


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.


There were no speakers.

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

The Commission unanimously agreed to meet July 13th to discuss possible recommendations and comments on "Your Voice/Our Future" General Plan.

ADJOURNMENT -  7:20 pm
      
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Water Utility Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. - 5:00p.m.

MOTION: A motion was made by Vice Chair Reynolds and seconded by Commissioner Campbell to adjourn the meeting.

MOTION carried, 5-0.