MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, February 13, 2017
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 6:00 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

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 JANUARY 9, 2017 MINUTES


Click here for draft minutes

(Materials attached in Granicus.)

MOTION: A motion was made by Commissioner Milkey and seconded by Commissioner Hollingsworth to approve the January 9, 2017 minutes as written.

MOTION carried, 7-0.

2.

DISCUSSION AND UPDATE REGARDING THE PROPOSED WATER WASTING CODE CHANGES (Commissioner Campbell, Commissioner Kibler & S. Kiel)


Click here for presentation (Added 2/13/17)

Ms. Kiel explained the code change is being driven by water conservation and efficiency, to support the new General Plan, to minimize water waste and reorganize the water conservation section of the code. Ms. Kiel reviewed the definition of "water wasting" and the major elements of the proposed code changes. The intent is to educate the public regarding water conservation. The code reorganization includes segregating different types of violations by the penalties imposed.The proposed schedule was reviewed. (Materials attached in Granicus.)

3.

DISCUSSION AND POSSIBLE ACTION REGARDING THE INTERGOVERNMENTAL AGREEMENT FOR CAP WATER WHEELING WITH THE CITY OF TUCSON
      (Commissioner Milkey & P. Saletta)


Click here for draft IGA

Click here for presentation (Added 2/13/17)

Commissioner Milkey explained the Water Resources Subcommittee reviewed the IGA and recommends the Commission forward it to Town Council for approval. He outlined benefits of the IGA.

Mr. Saletta explained the existing IGA is from June 2011 and it helps protect and preserve our groundwater. It has successfully delivered our CAP water for the last 5 years. Oro Valley CAP water is delivered through the Tucson Water system. He presented the elements of the IGA and the cost increase including the components of the pricing and the proposed annual escalation. Mr. Saletta explained the current IGA is for 2,000 acre feet and there would be an increase of up to an additional 600 acre feet. He described the current delivery points and the additional delivery point near Oracle and Hardy.

The base rate pricing of $419.65 per acre foot and capital charge allocation percentage of 12% can be reviewed in five years. Electric costs for pumping are added to the base rate and currently range from $115.59 to $158.65 per acre foot. The term of the IGA is for ten years and is renewable for an additional ten years. (Materials attached in Granicus.)

MOTION: A motion was made by Commissioner Milkey and seconded by Commissioner Leedy that the Commission recommend the IGA go to Town Council for approval and possible execution.

MOTION carried, 7-0.

4.

DISCUSSION AND UPDATE REGARDING THE CAP RECHARGE AND RECOVERY DELIVERY SYSTEM. (P. Saletta & P. Abraham)


Click here for map (Added 2/13/17)

Click here for map (Added 2/13/17)

Mr. Abraham presented an update on the CAP recharge and recovery delivery system. He detailed the partnered portions of the project, as well as the take-off point where the project partnership between the Oro Valley Water Utility, Metro Water, and Marana Water would end. He explained the operational and maintenance advantages of the project configuration and presented maps and schematics of the proposed project.

Mr. Saletta reported that an operations and maintenance study is in progress and that Metro Water is taking steps to acquire easements for the pipeline. The 2011 reliability agreement was discussed and the CAP project will be releasing funds of up to $900,000 to Oro Valley for this project. A draft of the IGA will be prepared for the Water Utility Commission to review at their meeting on March 13, 2017. The IGA would then go to the Town Council on April 5, 2017. (Materials attached in Granicus.)

5.

DISCUSSION AND UPDATE REGARDING THE REFUNDING OF THE 2007 BONDS (S. Kiel)


Click here for presentation (Added 2/13/17)

Ms. Kiel reported Oro Valley Water Utility in collaboration with the Finance Director have determined the best current option for bond refinancing. Eligible bonds were issued in 2007 to refinance portions of the 1996, 2000 and 2001 bond series. The 2007 bonds have an outstanding balance of $14,253,000, of which 92% of that is owed by the Water Utility and the balance is owed by the General Fund. The current interest rates range from 4.25% to 5% and the bonds are now callable.

Ms. Kiel explained we will refinance through private placement. The estimated interest rate for the new bonds is 2.5% fixed for ten years with level annual debt service payments. The net present value savings is estimated at $992,000. The Finance Director will request approval of the refinancing by Town Council on March 15, 2017. The estimated closing date for the bond issue is the week of April 3, 2017. (Materials attached in Granicus.)

6.

TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Piña)


Councilmember Piña reviewed the January 18, 2017 Town Council meeting - Approved IGA with RTA for traffic light at Oro Valley Community Center entrance; reviewed Leman Charter School conceptual site plan; amended zoning code based on Your Voice Our Future; recommended Oro Valley Community Center element feasibility study; reviewed Town Manager recruitment.

7.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee (Commissioner Tustison)


No report.

b.

Conservation Subcommittee (Commissioner Campbell)


No report.

c.

Water Resources Subcommittee (Commissioner Milkey)


No report.

8.

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; Glover storage tank maintenance; Well E2 upgrades; three pressure reducing valves are complete at Oro Valley Country Club and the reclaimed booster pump at Thornydale.

9.

DIRECTOR’S REPORT (P. Saletta)


a.

Colorado River Basin Snowpack Reports


Click here for report (Added 2/13/17)

Mr. Saletta presented snowpack reports for Colorado, Rio Grande, Arkansas River Basins, Arizona and Colorado and water storage levels in Lake Mead and Lake Powell. (Materials attached in Granicus.)

b.

Upcoming Meetings


- 02/15/17: Town Council meeting
- 03/13/17: Water Utility Commission meeting
- 03/15/17: Town Council meeting
- 03/28/17: Water Resources Research Center Conference

FUTURE AGENDA ITEMS

Commissioner Milkey inquired about a tour of water facilities. Mr. Saletta suggested staff organize two short field trips in April.

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:  MARCH 13, 2017  LOCATION: HOPI CONFERENCE ROOM

ADJOURNMENT

MOTION: A motion was made by Vice Chair Campbell and seconded by Commissioner Leedy to adjourn the meeting at 7:15 p.m.

MOTION carried, 7-0.

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 13th day of February, 2017. I further certify that the meeting was duly called and held and that a quorum was present.