MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, January 9, 2017
HOPI CONFERENCE ROOM
11000 N. LA CA√ĎADA DRIVE
 
 
 
CALL TO ORDER - AT OR AFTER 6:00 P.M.      (Chair Tustison)

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

ROLL CALL

PRESENT:
Winston Tustison, Chair
Anne Campbell, Vice Chair
Chuck Hollingsworth, Commissioner
Thomas Kibler, Commissioner
Bill Leedy, Commissioner
Byron McMillan, Commissioner
Robert Milkey, Commissioner

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

ALSO PRESENT:
Councilmember Piña
Councilmember Hornat

Commissioner McMillan arrived at 6:13 p.m.

WELCOME NEW COMMISSIONERS AND NEW COUNCIL LIAISON (Chair Tustison)

Chair Tustison welcomed new Town Council liaison Rhonda Piña. The new commissioners introduced themselves and provided their backgrounds.

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.

DISCUSSION AND POSSIBLE ACTION REGARDING THE ELECTION OF CHAIR AND VICE CHAIR OF THE WATER UTILITY COMMISSION          (P. Saletta)


The Commission decided to hold elections March because there are several new commissioners.

2.

APPROVAL OF NOVEMBER 14, 2016 MINUTES


Click here for draft minutes

(Materials attached in Granicus.)

Commissioner McMillan arrived during this item at 6:13 p.m.

MOTION: A motion was made by Commissioner Hollingsworth and seconded by Vice Chair Campbell approve the November 14, 2016 minutes as written.

MOTION carried, 7-0.

3.

APPOINTMENTS TO WATER UTILITY COMMISSION SUBCOMMITTEES            (Chair Tustison)


Chair Tustison announced the appointments to the subcommittees as follows: 
Water Conservation Subcommittee: Anne Campbell, Chair     - Thomas Kibler, Member
Water Resources Subcommittee: Robert Milkey, Chair           - Bill Leedy and Byron McMillian, Members
Finance Subcommittee: Winston Tustison, Chair                    - Chuck Hollingsworth, Member

4.

DISCUSSION AND POSSIBLE ACTION REGARDING A 2017 WORK PLAN AND CALENDAR FOR THE WATER UTILITY COMMISSION              (P. Saletta)


Click here for the 2017 Draft Work Plan and Calendar

Mr. Saletta presented and reviewed the 2017 Water Utility Commission Draft Work Plan and Calendar. The commission suggested the elections take place in March and an update on the water code take place in February.

(Materials attached in Granicus.)

MOTION: A motion was made by Commissioner Leedy and seconded by Commissioner Kibler to adopt the Water Utility Commission 2017 Work Plan and Calendar subject to the changes discussed during this meeting and given the flexibility to change the work plan as needed during the course of the year.

MOTION carried, 7-0.

5.

DISCUSSION AND UPDATE REGARDING THE CAP WHEELING INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF TUCSON            (P. Saletta)


Mr. Saletta reported Oro Valley Water Utility (OVWU) will renew the existing intergovernmental agreement (IGA) with Tucson Water. The existing IGA allows for a pricing update every five years. Tucson Water recommended a $250 per acre foot increase. OVWU's consultant reviewed the plan and determined four major components:
1) Recent decrease in demand has caused a 17% shortfall in revenue.
2) Tucson Water has a higher charge for their percentage of the capital component.
3) Electric rates should be separated out and an annual escalator should not include the electric cost increase.
4) A peaking factor should not be included.

Mr. Saletta reviewed the tentative schedule.

6.

DISCUSSION AND UPDATE REGARDING THE CAP RECHARGE AND RECOVERY DELIVERY SYSTEM PROJECT AND INTERGOVERNMENTAL AGREEMENT WITH METRO WATER AND MARANA UTILITIES      (P. Saletta and P. Abraham)


Click here for presentation (Added 1-9-17)

Commissioner Milkey opened the discussion stating that at a joint meeting the Water Resources Subcommittee and Finance Subcommittee were briefed and discussed the various non-partnered OVWU water transmission main alignments for the delivery of recovered CAP water from the Lower Santa Cruz recharge facilities to the Oro Valley main service area.

Mr. Saletta reviewed the process for the OVWU to partner with Metro Water and Marana Water to participate in the CAPRRDS. He explained the IGA is being developed to govern financing, design, construction, operations and maintenance of the shared components of the project. Metro Water would operate and maintain the shared facilities. Each independent partner would operate and maintain their own independent components after the shared portion of the project.

Mr. Abraham reviewed the technical aspects of the project, including the shared and independent components and costs, water quality and blending. OVWU is working with Metro Water and Marana Water on the details of the shared components.

Ms. Kiel presented the funding and financing. OVWU’s portion of the project would be shared equally between existing customers and future growth. Funding would be shared equally between alternative water resource development impact fees and groundwater preservation fees paid by existing customers. Financing for Oro Valley’s share of the project would be accomplished by either the sale of bonds or by paying a loan from the Water Infrastructure Finance Authority.  
 
Mr. Saletta explained staff is evaluating this economically by comparing the CAPRRDS to expansion of our Tucson Water CAP wheeling through a net present value analysis. He reviewed the tentative schedule.  (Materials attached in Granicus.)

7.

TOWN COUNCIL MEETINGS/COMMUNICATIONS                      (Councilmember Piña)


Councilmember Piña reported on the distracted driving ordinance.

8.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee                  (Commissioner Tustison)


No report.

b.

Conservation Subcommittee                    (Commissioner Campbell)


Vice Chair Campbell reported that they are concluding the final wording on the water code changes. They will also develop an educational campaign.

c.

Water Resources Subcommittee                        (Commissioner Milkey)


No report.

9.

STAFF REPORTS


a.

Customer Service Report                            (S. Kiel)


Click here for Customer Service Report (Added 1-9-17)

Ms. Kiel reported on the new metered connections and service units for the first six months of the fiscal year. She provided an update on water conservation audits, AquaHawk users and AquaHawk training programs. (Materials attached in Granicus.)


b.

Water Supply and Delivery Report                  (P. Abraham)


Click here for report (Added 1-9-17)

Mr. Abraham reported on water production and delivery comparisons of groundwater, CAP water and reclaimed water for calendar years 2015 and 2016. (Materials attached in Granicus.)

c.

Capital Projects Report                    (B. Jacklitch)


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

10.

DIRECTOR’S REPORT                      (P. Saletta)


a.

Colorado River Snowpack Reports


Click here for Snowpack Reports (Added 1-9-17, Updated 1-9-17 at 2:30 p.m.)

Mr. Saletta reviewed snowpack reports for Arizona, Utah, Wyoming, and Colorado and water storage levels in Lake Mead and Lake Powell.
(Materials attached in Granicus.)

b.

Upcoming Meetings


- 01/18/17: Town Council meeting
- 02/01/17: Town Council meeting
- 02/13/17: Water Utility Commission meeting

FUTURE AGENDA ITEMS

No discussion.

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.

NEXT MEETING:  FEBRUARY 13, 2017      LOCATION: HOPI CONFERENCE ROOM

ADJOURNMENT

Chair Tustison adjourned the meeting at 8:01 p.m.

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 9th day of January, 2017. I further certify that the meeting was duly called and held and that a quorum was present.