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MINUTES WATER UTILITY COMMISSION REGULAR SESSION October 10, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE

REGULAR SESSION AT OR AFTER 5:00 PM

CALL TO ORDER - Vice Chair Hitt called the meeting to order at 5:12 P.M.

ROLL CALL

Present:	Chuck Hollingsworth, Commissioner
	Robert Milkey, Commissioner
	Tom Marek, Chair
	Patricia Olson, Commissioner
	Greg Hitt, Vice Chair
Absent:	Byron McMillan, Commissioner
	Alan Forrest, Commissioner
Staff Present:	Peter A. Abraham, P.E., Water Utility Director
	Mary Rallis, CPA, Water Utility Administrator
	Lee Jacobs, P.E., C.P.M., Engineering Division Manager
	David Allred, Water Operations Manager

CALL TO AUDIENCE - There were no speaker requests.

REGULAR SESSION AGENDA

REVIEW AND APPROVAL OF THE SEPTEMBER 12, 2022 REGULAR SESSION MEETING MINUTES


				Motion by Commissioner Robert Milkey, seconded by Commissioner Chuck Hollingsworth

			Vote: 5 - 0 Carried

	2.		DISCUSSION ON WATER RATES ANALYSIS SCHEDULE (P. ABRAHAM) Water Utility Director Peter Abraham went over the water rates analysis goals which included developing water rates that generate sufficient revenue to: -Meet revenue and cash reserve requirements -Meet debt service coverage requirements -Ensure revenue stability -Maintain the overall financial health of the Utility Water Utility Director Peter Abraham explained that water rates shall also: -Promote water conservation -Be the minimum necessary to avoid rate shock -Adapt to changing rate drivers and consumer trends -Be equitable between customer classifications -Recover cost of service (potable and reclaimed) Water Utility Director Peter Abraham went over the tentative schedule for water rates analysis.

	3.		UPDATE AND DISCUSSION ON NWRRDS (P. ABRAHAM & L. JACOBS) Water Utility Director Peter Abraham reviewed the foundation of the NWRRDS project and provided an update on the current state of the partnered NWRRDS project including: -The partners (Oro Valley, Marana and Metro Water) evaluating the contractor bidding environment -The partners working with the contracting community to reduce the exposure to risk and minimize supply chain issues in regards to the partnered NWRRDS project Engineering Division Manger Lee Jacobs provided an update on the independent NWRRDS projects and the value they will have for Oro Valley. Commissioner Patrica Olson requested more information on the work involved with the contracting community to reduce the exposure to risk and minimize supply chain issues in regards to the partnered NWRRDS project. Commissioner Tom Marek asked if the acceleration of shortages has had any impact on moving forward with the projects and Water Utility Director Peter Abraham explained that because of the relative limited breadth and depth of the independent NWRRDS projects compared to the partnered NWRRDS project, that the Utility expects that supply chain issues and shortages will be manageable.

	4.		UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) Engineering Division Manager Lee Jacobs presented updates on the following: -Well rehabilitation of Well D-1 -Nakoma Sky Production Well -Steam Pump Well -Design of redundancy water line in the Catalina Shadows and Palisades area -Design of redundancy water line in the El Conquistador subdivision -Countryside Wheeling Station upgrades -Rancho Vistoso Booster Station evaluation and design -Sun City H and G Zone Booster pressure tank replacement

	5.		UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) Water Utility Administrator Mary Rallis presented updates on the following: -FY 2022/23 Revenues -FY 2022/23 Expenses -Customer Service update through 9/30/22 Commissioner Tom Marek inquired if anything specific is being watched yet and Water Utility Administrator Mary Rallis replied that there is nothing specifically being watched at this time.

	6.		UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITES (D. ALLRED) Water Operations Manager David Allred provided updates on the following: -Staffing -Water Operations Administration -Water Production activites -Water Control System activites -Water Distribution activites -Water Meter Operations activites -Water Quality activities Commissioner Tom Marek suggested budgeting 5-10% for the next couple of years for feature enhancements in regards to SCADA updates.

	7.		UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) Water Utility Director Peter Abraham reported on water usage by type in the following areas: -Oro Valley main service area for January-September 2022 -Countryside service are for January-September 2022

	8.		TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) Councillmember Bohen reported that the Council is back to meeting on a regular schedule. Councilmember Bohen reported that at the last meeting the Council approved that applications for general land amendments can now be submitted at any time of the year.

	9.		SUBCOMMITTEE/COMMISSION REPORTS

		A.	FINANCE SUBCOMMITTEE - No report.

		B.	WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report.

	10.		DIRECTOR'S REPORT Water Utility Director Peter Abraham provided the Director's Report which included upcoming meeting and event dates.

			CALL TO AUDIENCE - There were no speaker requests.

FUTURE AGENDA ITEMS - There were no suggested future agenda items.

ADJOURNMENT


					Motion by Commissioner Tom Marek, seconded by Commissioner Greg Hitt to adjourn the meeting at 5:57 P.M.

Vote: 5 - 0 Carried

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 10th day of October, 2022. I further certify that the meeting was duly called and held and that a quorum was present.

___________________________
Nicole Noble
Senior Office Specialist