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MINUTES WATER UTILITY COMMISSION SPECIAL SESSION FEBRUARY 15, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE

SPECIAL SESSION AT OR AFTER 5:00 PM - Chair Marek called the meeting to order at 5:00 p.m.

CALL TO ORDER

ROLL CALL

Present:	Tom Marek, Chair
	Greg Hitt, Vice Chair
	Chuck Hollingsworth, Commissioner
	Byron McMillan, Commissioner
	Robert Milkey, Commissioner
Staff Present:	Peter A. Abraham, P.E., Water Utility Director
	Lee Jacobs, P.E., C.P.M., Water Utility Engineering Manager
	David E. Allred, Water Operations Manager
	Mary Rallis, CPA, Water Utility Administrator
Attendees:	Councilmember Bohen, Town Council Liaison
	Dan Jackson, Vice President, Willdan Financial Services

CALL TO AUDIENCE - No speakers.

SPECIAL SESSION AGENDA

REVIEW AND APPROVAL OF THE JANUARY 10, 2022 REGULAR SESSION MEETING MINUTES


				Motion by Commissioner Robert Milkey, seconded by Vice Chair Greg Hitt to approve the January 10, 2022 meeting minutes as written.

				Vote: 5 - 0 Carried

	2.			DISCUSSION AND POSSIBLE ACTION REGARDING WATER RATES - PRESENTED BY WILLDAN CONSULTING
				Water Utility Director Peter Abraham introduced Item #2 and Mr. Dan Jackson, Vice President of Willdan Financial Services. Mr. Jackson provided a presentation which included the following: - Presentation contents - Facts about water rates in the 21st century - Current water rate structure - July 2021 - Historical rate increases - Monthly residential charge comparison - 7,000 gallons of water - Potable water accounts by rate class - test year 2022 - Actual and forecast potable water accounts - Average monthly water consumption by rate class - test year 2022 - Actual and forecast potable water billed consumption - Key assumptions driving forecast, financial and rate plan - Capital Improvement Plan: FY 2022 - FY 2026 - Long-term financing forecast water bond issues - Forecast cost of service and net revenue requirement - Notes on rate proposal - potable water rates - Water rate plan - potable water rates FY 2023 - FY 2027 - Scenario A - Rate plan - impact on monthly bills for FY 2023-FY 2027 - Scenario A - Forecast operating and GPF cash balances - Scenario A - Forecast GPF cash balances - Scenarios A, B, and C - Rate plan - impact on monthly bills FY 2023-FY 2027 - Scenario B - Forecast operating and GPF cash balances - Scenario B - Rate plan - impact on monthly bills for FY 2023-FY 2027 - Scenario C - Rate plan - impact on monthly bills FY 2023-FY 2027 - Scenarios A, B, and C - Forecast operating and GPF cash balances - Scenario C - Presentation summary - Why is rate plan beneficial to Oro Valley? Water Utility Director Peter Abraham provided a presentation which included the following: - Other water rates and fees (no change recommended) - Schedule Discussion ensued amongst the Commission, staff and the consultant regarding Item #2.


				Motion by Commissioner Robert Milkey, seconded by Commissioner Chuck Hollingsworth to recommend Water Rate Scenario C (also recommended by the Finance Subcommittee) to the Town Council for consideration of approval.

			Vote: 5 - 0 Carried

	3.		DISCUSSION REGARDING WATER UTILITY ANNUAL REPORT
			Water Utility Director Peter Abraham provided a presentation which included the following: - Outline - Contents - Schedule

	4.		UPDATE AND DISCUSSION ON WATER RESOURCE USAGE
			Water Utility Director Peter Abraham presented the water production information for the Oro Valley and Countryside service areas. The statistics illustrate data from January through December 2021.

	5.		TOWN COUNCIL MEETINGS/COMMUNICATIONS Councilmember Bohen spoke about the Town Council agenda item relating to revitalization of the Oro Valley Marketplace.

	6.		SUBCOMMITTEE/COMMISSIONER REPORTS

		A.	FINANCE SUBCOMMITTEE - Chair Marek reported the Subcommittee met twice to review and discuss the water rates analysis.

		B.	WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report.

	7.		DIRECTOR'S REPORT
			Water Utility Director Peter Abraham reported on the following: - Upcoming meetings - Water News - Upper Colorado Basin Snowpack Comparisons - Water News - 2022 Colorado Snow Water Equivalent

CALL TO AUDIENCE - No speakers.

FUTURE AGENDA ITEMS - No items discussed.

ADJOURNMENT


				Motion by Vice Chair Greg Hitt, seconded by Commissioner Robert Milkey to adjourn the meeting at 6:06 p.m.

Vote: 5 - 0 Carried

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 15th day of February 2022. I further certify that the meeting was duly called and held and that a quorum was present.

___________________________
Danielle Tanner
Senior Office Specialist