MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, October 12, 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
Shanna Weagle, Commissioner

STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
Peter Abraham, Water Resources and Planning Manager
Robert Jacklitch, Project Manager

CALL TO AUDIENCE

There were no speakers.

1.

APPROVAL SEPTEMBER 14, 2015 MINUTES


Click here for Item #1

Commissioner Weagle had a correction on page 3 of the minutes.

MOTION: A motion was made by Vice Chair Reynolds and seconded by Commissioner Campbell to Recomend Approval of the September 14, 2015 minutes as amended.

MOTION carried, 6-0.

2.

DISCUSSION AND UPDATE ON WATER RATES ANALYSIS    (Commissioner Tustison and S. Seng)


Click here for Item 2 Water Rates Analysis

Commissioner Tustison reported that the Finance Subcommittee met October 8, 2015 to discuss the assumptions to be used in the Water Rates Analysis FY 2016.

Ms. Seng presented an update on the Water Rates Analysis. 

A Notice of Intent is scheduled to be presented to Council on December 2, 2015 and the public hearing is scheduled for January 6, 2016.

There was discussion regarding: 
-Capital project for reclaimed system $2.1 million main relocation in FY 15-16
-Which funds are used to pay capital improvement projects and groundwater pumping
-Operating fund expenses 2018-2019 related to debt service payment 2007 bonds
-The additional 500 AF of CAP water and costs associated with the purchase 
-Request to review Capital Improvement Project 15 Year plan 

No formal action was taken or required.

3.

DISCUSSION AND POSSIBLE ACTION ON SERIES 2005 BOND REFUNDING      (Commissioner Tustison and S. Seng)


Click here for Item 3 Series 2005 Bond Refunding

Commissioner Tustison mentioned that Stacey Lemos, Finance Director was also present at the subcommittee meeting to review the bond refunding process. Commissioner Tustison mentioned that the Water Utility's portion of the debt was 33% of the bonds to be refinanced. 

There was discussion regarding:
-Refinancing Series 2005 Bonds through private placement saving the town a considerable amount of money. 
-The 2.5% new interest rate should save the Water Utility approximately $86,000 in interest payments in FY 2016-17.

Ms. Seng presented an overview regarding the Series 2005 Bond Refunding and reviewed several scheduled dates.

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga to Recomend Approval and that Town Council authorize and approve the refunding of Series 2005 Bond Excise Tax Revenue Obligations.

MOTION carried, 6-0.

4.

DISCUSSION AND POSSIBLE ACTION REGARDING THE ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT    (Commissioner Reynolds and Commissioner Weagle)


Commissioner Reynolds reported that this item was discussed at the Water Resources Subcommittee August 20, 2015 and there was discussion whether the intent of the report was focused on the Commission's work or the Water Utility progress.

There was discussion regarding:
-All subsequent Annual Report for the Oro Valley Water Utility back to year 2000 
-Tucson Water's Advisory Committee Annual Report and others 
-Request ideas: Section in the Annual Report summarizing the topics and tasks taking place by a particular subcommittee but not  quite ready for a recommendation
-Request ideas: Review financial section, capital budget, metrics, CIP projects on an annual basis, CAP long term planning
-Determine if the Annual Report is a Commission or a Water Utility report and the intent of the report
-Form a Commission Work Study group to review the Annual Report format

Commissioner Weagle believed it could benefit the Commission and Council and the public if the Annual Report was revised.

Mr. Saletta said it was a Water Utility report, approved by the Commission and forwarded to Town Council for their acceptance.

Chair Davis requested a recommendation from the Commission. Vice Chair Reynolds felt the Annual Report information required further review and discussion.

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Tustison  keep the Oro Valley Water Utility Commission Annual Report title as is in its original form.

MOTION failed, 3-3 with Chair Davis, Commissioner Campbell, and Commissioner Weagle opposed.

There was further discussion about a Commission study work group to review the Annual Report.

MOTION: A motion was made by Commissioner Weagle and seconded by Commissioner Campbell to approve to schedule a Commission work study group to focus on exploring the potential possibility of revising the Water Utility Commission Annual Report format.

MOTION carried, 5-1 with Commissioner Arriaga opposed.

5.

DISCUSSION AND POSSIBLE ACTION REGARDING WELL AND AQUIFER METRICS      (Commissioner Reynolds, Commissioner Weagle and P. Abraham)


Click here for Item #5 Well and Aquifer Metrics PPT

Mr. Abraham gave an update on the Water Utility January 2015 well field monitoring & aquifer metrics.

Mr. Abraham explained what data is collected, what calculations are made, and what analysis is performed in evaluating a well performance.

There was discussion regarding:
-Well production, SCADA and real time data availability
-Pumping level and sustainable water levels
-System management and data collection

Commissioner Weagle requested that a well monitoring and aquifer metric report be presented to the Commission. Staff will report well monitoring and aquifer metrics annually to the Commission.

No formal action was taken or required.

6.

DISCUSSION AND POSSIBLE ACTION REGARDING AMENDMENT NUMBER 3 TO ADDENDUM 1 TO THE CITY OF TUCSON - TOWN OF ORO VALLEY INTERGOVERNMENTAL AGREEMENTS RELATING TO EFFLUENT AND TO RECLAIMED WATER  (P. Saletta)


Click here for Item 6A Reclaimed IGA Amendment 3 PPT

Click here for Item 6 Reclaimed IGA Extension

Mr. Saletta presented an update on the Reclaimed IGA Amendment 3 - Extension

There was discussion regarding:
-Long Term Storage Credits and cash payments 
-Tucson Water Non-interruptible rate
-Payment of Reclaimed Water with effluent credits or long-term storage credits versus cash payments is it Oro Valley's option in the amendment

Staff recommends that the Commission recommend forwarding the IGA to Council and that Council approve the proposed Amendment 3 to the Reclaimed IGA.

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Campbell to Recomend Approval and forwarding to Council the proposed Amendment 3 to the Reclaimed IGA.

MOTION carried, 6-0.

7.

TOWN COUNCIL MEETINGS/COMMUNICATIONS          (Councilmember Hornat)


Councilmember Hornat reported on the following:
-Golf courses losses
-November 4th T.C. meeting: Agenda Item - Nakoma Sky Planned Area Development

8.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee   


Commissioner Tustison had no report.

b.

Conservation Subcommittee 


Commissioner Davis reported on the October 12, 2015 subcommittee meeting. 

There was discussion regarding:
-AquaHawk educational opportunities and penalties for non-adherence to water codes and policies.

c.

Water Resources Subcommittee           


Commissioner Weagle reported on the Water Resources Subcommittee.
There was discussion regarding:
-Well and aquifer metrics
-Water Utility Annual Report
-Groundwater Extinguishment Credits and Long Term Storage Credits

9.

STAFF REPORTS


a.

Capital Projects    (B. Jacklitch)


Mr. Jacklitch reported the following projects:
-Tangerine Road water main
-Lambert Lane & La Canada   
-La Cholla Widening 
-Hoover Power

10.

DIRECTOR’S REPORT              (P. Saletta)


Mr. Saletta announced Vice Chair Reynolds last term as commercial/turf representative would be ending December 31, 2015. The Utility is also seeking a Countryside area representative. A media release was posted Friday, October 9th for both vacancies.

a.

Upcoming Meetings


10/21: T.C. meeting
11/06: CAP & Water Resources Research Center Sustainable Water for Southern Arizona  
11/09:  WUC meeting

FUTURE AGENDA ITEMS 
January 2016 Items
-Penalties for wasting water (Conservation Subcommittee)
-Drought Preparedness Plan 
-Stormwater policies related to water conservation 
-Assured Water Supply (will be removed)


CALL TO AUDIENCE - There were no speakers.


NEXT MEETING:  NOVEMBER 9, 2015 LOCATION: HOPI CONFERENCE ROOM


ADJOURNMENT


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

MOTION carried, 5-0.