MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, November 14, 2016
HOPI CONFERENCE ROOM
11000 N. LA CA√ĎADA DRIVE
 
 
 
CALL TO ORDER - AT OR AFTER 6:00 P.M.

Chair Tustison called the meeting to order at 6:01 p.m.

ROLL CALL

PRESENT:
Winston Tustison, Chair
Anne Campbell, Vice Chair
Javier Arriaga, Commissioner
Thomas Kibler, Commissioner
Robert Milkey, Commissioner
Shanna Weagle, Commissioner

Commissioner Weagle attended via telephone.

Staff Present: Philip Saletta, P.E., Water Utility Director
Shirley Kiel, Water Utility Administrator
Peter Abraham, P.E., Water Resources and Planning Manager
Robert Jacklitch, Project Manager

Also Present: Councilmember Hornat

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.

No speakers.

1.

APPROVAL OCTOBER 10, 2016 MINUTES


Click here for draft minutes

(Materials attached in Granicus.)

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Kibler to approve the minutes as written.

MOTION carried, 5-0.

(Commissioner Weagle abstained.)

2.

DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER RATES ANALYSIS AND PREFERRED FINANCIAL SCENARIO


Click here for Summary of Financial Scenarios (Added 11/9/16)

Click here for Financial Scenario A (Added 11/9/16)

Click here for Financial Scenario B (Added 11/9/16)

Click here for 5-Year CIP (Added 11/9/16)

Click here for Work Schedule_Water Rates Analysis (added 11/9/16)

Click here for Actual Revenue Expenses (Added 11/14/16)

Click here for presentation (Added 11/14/16)

Ms. Kiel presented two financial scenarios. Both scenarios share the same assumptions, including $5.2M in new debt to finance capital improvements. Both scenarios also meet the debt service coverage requirements and cash reserve requirements in each year of the five year projection period. The only difference in the scenarios is the rate design.

Scenario A includes an increase of 2% in all base rates and an increase of 1.5% in the potable water commodity rates. Scenario B includes an increase of 3% in all base rates and an increase of 1% in the potable water commodity rates. Neither scenario proposes an increase in the reclaimed commodity rate.

Ms. Kiel reviewed the proposed base rates and commodity rates for each scenario and the impact each scenario would have on residential and reclaimed turf customers.

Ms. Kiel presented the key components of the Alternative Water Resource Development Impact Fee Fund and the Potable Water System Development Impact Fee Fund for both scenarios. (Materials attached in Granicus.)

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Milkey to recommend Scenario B to be the preferred financial scenario in the Water Rates Analysis Report and that the Town Council approve a Notice of Intent to increase the water rates in coordination with Scenario B.

MOTION carried, 4-2 with Commissioner Kibler and Commissioner Weagle opposed.

3.

DISCUSSION AND UPDATE REGARDING THE COLORADO RIVER AND CENTRAL ARIZONA PROJECT WATER SUPPLY


Click here for Colorado River & Central AZ Project Maps

Click here for presentation

Mr. Saletta presented the Colorado and Arizona streamflow reports and the storage in Lake Mead and Lake Powell.

Mr. Saletta explained the Colorado River flow structural deficit, Lake Mead storage critical decline and the CAP water junior priority.

Arizona Department of Water Resources and Central Arizona Project are developing the Lower Colorado River Basin Drought Contingency Plan (LBDCP) to keep water stored in Lake Mead with shared water use reductions from Arizona, Nevada and California. 

Mr. Saletta described how Tier 1 shortages would impact excess water users and agriculture within the Central Arizona Project water delivery system. Municipal and Industrial water users would not be impacted for a Tier 1 shortage. He reviewed LBDCP proposed water use reductions, steps being taken and how the plan would impact Oro Valley Water Utility.

Next steps are to involve Arizona water users, develop a consensus in Arizona and work with Nevada and California to avoid reductions that could be dictated by the Secretary of Interior or appointed river master. (Materials attached in Granicus.)

4.

DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE DECEMBER 12, 2016 WATER UTILITY COMMISSION MEETING


Mr. Saletta stated staff does not have any items to bring forward in December.

MOTION: A motion was made by Commissioner Arriaga and seconded by Vice Chair Campbell cancel the December 12, 2016 Water Utility Commission meeting.

MOTION carried, 5-1 with Commissioner Weagle opposed.

5.

TOWN COUNCIL MEETINGS/COMMUNICATIONS          (Councilmember Hornat)


Councilmember Hornat reviewed the following Town Council meetings:

- October 19, 2016 – Oro Valley Community Center Fund; review of Overlook restaurant; cancelled 11/2/16 Town Council meeting; extended Ram's Pass development plan; two liquor licenses.

- November 16, 2016 (upcoming) – Fiscal year update; swear in new councilmembers; executive session regarding town manager recruitment; potential new charter school (not on agenda); effluent and reclaimed water IGA amendment for additional water pump; Vistoso Highlands general plan amendment and PAD amendment; conceptual site plan and recreation area plan; grading exception at Naranja Drive and First Ave.

a.

Upcoming Meetings


- November 16, 2016 - Town Council meeting
- November 30, 2016 - Lower Santa Cruz River Basin Study public meeting
- December 7, 2016 - Town Council meeting
- December 8, 2016 - Volunteer Appreciation Ceremony
- January 9, 2017 - Water Utility Commission meeting

6.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee          (Commissioner Tustison)


No report.

b.

Conservation Subcommittee    (Commissioner Campbell)


Vice Chair Campbell reported work continues on the water wasting code revisions. The subcommittee will present this item to the commission at the January 9, 2017 meeting for a recommendation. If approved, it would go to the Town Council on March 1, 2017 and if adopted, the revised code would be effective May 1, 2017.

c.

Water Resources Subcommittee            (Commissioner Milkey)


No report.

7.

STAFF REPORTS


a.

Capital Projects                (B. Jacklitch)


Mr. Jacklitch reported on the following projects: Tangerine Road reclaim water line relocation; Lambert Lane roadway improvement and potable main installation; La Cholla Road potable main relocation; Well D-7 hydropneumatic tank replacement; Well E2 upgrades; pressure reducing valves at Oro Valley Country Club and reclaimed booster pump at Thornydale.

8.

DIRECTOR’S REPORT                (P. Saletta)


FUTURE AGENDA ITEMS

No items.

Chair Tustison and Mr. Saletta thanked Shanna Weagle and Javier Arriaga for their service on the commission.

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.

No speakers.

ADJOURNMENT

MOTION: A motion was made by Commissioner Milkey and seconded by Commissioner Arriaga adjourn the meeting at 7:40 p.m.

MOTION carried, 6-0.

Prepared by:
   
 
Danielle Tanner
Senior Office Specialist
 
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Water Utility Commission of Oro Valley, Arizona held on the 14th day of November, 2016. I further certify that the meeting was duly called and held and that a quorum was present.