MINUTES
ORO VALLEY WATER UTILITY COMMISSION
*AMENDED (9/6/13, 2:00 PM)
Monday, September 9, 2013
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
 
 
 
CALL TO ORDER - AT OR AFTER 6:00 P.M.

ROLL CALL

PRESENT:
Robert Milkey, Chair
Richard Davis, Commissioner
John Hoffmann, Commissioner
Elizabeth Shapiro, Commissioner

EXCUSED: Winston Tustison, Vice Chair
Richard Reynolds, Commissioner
Richard Verlaque, Commissioner

STAFF PRESENT: Philip C. Saletta, Water Utility Director
                           Shirley Seng, Utility Administrator
                           David Ruiz, Engineering Division Manager

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.

There were no speakers present.

1.

APPROVAL JUNE 18, 2013 MINUTES


Click here for Item #1

MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Davis approve the June 18, 2013 minutes.

MOTION carried, 4-0.

2.

DISCUSSION AND POSSIBLE ACTION REGARDING A LOAN FROM THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA   (S. Seng)


Click here for Item #2

Ms. Seng reported that the AMI and meter replacement pilot project was completed in Countryside in year 2011 and was paid for with cash. Phase I in Oro Valley was completed June 2013 and also paid for with in cash. The remaining Oro Valley phases will be financed with a WIFA Loan of approximately $4.8 million.  Ms. Seng presented a PowerPoint regarding the proposed WIFA loan. The average interest for a WIFA loan was 2.76% in 2012. Council approved authority to apply on 9/4/13 and the  WIFA loan application will be submitted on 10/18.

Mr. Saletta mentioned that Council member Hornat and Council member Snider, as well as Council, were very supportive of the Advanced Meter Infrastructure project and Meter Replacement program.  No action required or taken on this item. 

3.

DISCUSSION AND POSSIBLE ACTION REGARDING THE COST OF SERVICE STUDY AND WATER RATES (S. Seng)


Click here for Item #3

Click here for Item #3B

Click here for Item #3A

Ms. Seng presented a Power Point regarding the Cost of Service Study that included the reasons for it, key steps, and proposed water rates.  

-Handouts - Water Rate Design and Update Technical Memorandum DRAFT. Ms. Seng reviewed Tables 3 and 4 detailing the proposed commodity rates increases.

-Tentative Schedule
08/27/13: Finance Subcommittee review
09/19/13: WUC review
10/14/13: WUC Final recommendation
10/16/13: TC adopts Notice of Intent
11/20/13: Public Hearing to adopt new rates
12/21/13: Rates are effective
01/21/14: Begin billing at new rates 

Commissioner Shapiro mentioned that the gradual water rate increases were reasonable and avoided rate shock. She felt comfortable recommending to Council that they adopt the proposed rates in FY 2013/14 in Table 4. Ms. Seng read Vice Chair Tustison comments and his recommendation to move forward with the proposed water rates in Table 4. There was consensus that the proposed water rates in Table 4 be moved forward to Council. 

Chair Milkey recommended adopting a formal motion on the proposed water rates outlined in Table 4 at the next WUC meeting October 14. 

No action required or taken on this item. 

4.

DISCUSSION AND POSSIBLE ACTION REGARDING THE IMPACT FEE ANALYSIS                              (P. Saletta)


Click here for Item #4

Click here for Item #4a

Mr. Saletta gave a Power Point Presentation regarding the Water Utility Impact Fees.

Impact Fees Approval Process Schedule
-8/27: WUC Fiance SC Meeting   -10/4: Draft Studies published 10/14: WUC update  -12/4: Council Public Hearing   -12/9: WUC update/ Recommendation 
-1/15/2014: Council considers approval of Land Use Assumptions and Infrastructure Improvements Plan -2/19/2014: Council Public Hearing 3/10/2014: WUC recommendation -4/4/2014: Council consider adoptions of fees  -6/1/2014: Effective date

No action required or taken on this item.

5.

DISCUSSION AND POSSIBLE ACTION REGARDING THE RECLAIMED WATER INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF TUCSON    (P. Saletta)


Mr. Saletta reported that Alan Forrest, Tucson Water Director was currently working out several issues with the reclaimed water system and Pima County's Wastewater Reclamation Improvements Department. Tucson Water suggests that Oro Valley agree to a 1 year extension until these matters are settled.

Staff recommends moving forward with Tucson Water's 1 year extension. There was consensus by the Commission to forward the Reclaimed IGA extension to Council.  No action required or taken on this item.

6.

*DISCUSSION AND POSSIBLE ACTION REGARDING THE NAVAJO GENERATING STATION (P. Saletta)


Click here for Item #6

Mr. Saletta mentioned that Council requested adding this item to their September 18 agenda. Staff is requesting a recommendation from the Commission to move forward to Council. The letter states that the Town of Oro Valley supports the position the Central Arizona Project Technical Work Group has recommended to the Environmental Protection Agency. Mr. Saletta described the participants, and gave a brief outline regarding the proposal. The rule is to reduce emissions of nitrogen oxides (NOx) from the coal-fired Navajo Generating plant.  

Chair Milkey mentioned that the Commission or Council have expertise in deciding whether a particular approach meets the required NOx levels or not. 

Staff recommends moving forward with the letter and CAP's decision.

The Commission does not have to take any action, and we could have Council move forward with their decision.

Chair Milkey requested modifying language in paragraph two (page 2). The Commission unanimously agreed with the changes.

Chair Milkey requested a motion.

MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Davis to Recomend Approval and to modify letter by stating the following "that this alternative, also known as the TWG BART Proposal has the potential to protect the future of NGS and serves the interests of CAP water users by reducing and delaying the expenditures related to SCR installation and operation. 

MOTION carried, 4-0.

7.

TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat)


Councilmember Hornat reported on:
-TOV General Fund Surplus: $1.7 million
-Conceptual Site Plan Maracay Homes approved by Council

8.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee (Commissioner Tustison)


There was no report.

b.

Conservation Subcommittee (Commissioner Davis)


Ms. Seng reported on:
-Handouts: High Water Use Action Plan   
-OV Water Education Activity booklet for youth education.

c.

Water Resources Subcommittee (Commissioner Hoffmann)


There was no report.

9.

STAFF REPORTS


a.

Customer Service Report (S. Seng)


Click here for Item 9a

Ms. Seng reported on Customer Service Report - August 2013 
-Total Metered Connections as of 8/31/13: 18,834
-Actual New Meter Installations as of 8/31/13:  22     Current: 17
-Projected EDU's for FY 13-14:  26     Current: 19  
-Meter Replacement Program FY 12-13: 2,517
 Water Audits for FY 13-14: 20          Current: 10

-Invitation to AMI celebration tentative schedule: October 11th or 18th . Location Town Council Chambers

b.

Capital Projects (B. Jacklitch)


-CAP Project delivery of 500 AF  and CH2MHill Study Ref: CAP Water Quality
-Reclaim Plant: Retention basin improvements and pump installation
-Design plans: Reclaim water line extension to Naranja Town park
-Energy efficiency project working with NCS and Westland Resources Inc. 

c.

Potable and Reclaimed Water System Report (D. Ruiz)


Click here for Item 9c

Mr. Ruiz reported on the August 2013 reports:
-Annual Water Production Report
-Monthly Production Report
-Precipitation & Storage Average
-Reclaimed Water Deliveries

10.

DIRECTOR’S REPORT (P. Saletta)


Click here for Item 10a Colorado River Water Supply Rpt.

Click here for Item 10b Inflow into Lake Powell

a.

Colorado River Report


Mr. Saletta reported on:
-Colorado River Water Supply Report and Lake Mead & Lake Powell.

b.

Upcoming Meetings


9/18: Town Council meeting 
9/26: State of the Town 
10/02: Town Council meeting
10/14: WUC meeting

Commission Vacancies: Chair Milkey mentioned upcoming Commission vacancies were due to term limits for Commissioner Hoffmann and Vice Chair Tustison.

Mr. Saletta mentioned that Commissioner Davis's position was coming up for reappointment.

FUTURE AGENDA ITEMS: No items mentioned.

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.

NEXT MEETING:  OCTOBER 14, 2013 LOCATION: HOPI CONFERENCE ROOM

ADJOURNMENT: 8:40 p.m.

MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Davis to Adjourn the meeting

MOTION carried, 4-0.