There were no speakers present.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Davis to Approve the September 9, 2013 minutes.
MOTION carried, 5-0.
Vice Chair Tustison reported that the Finance Subcommittee had met 3 times to discuss the Cost of Service Study and the Water Rates Analysis. We received additional information which was very favorable and resulted in a lower rate increase.
Ms. Seng reported on the Rate Schedule for Service Fees and Charges: The engineering design review fees and the construction inspection are proposed to increase. These fees have not been increased in the last 3-4 years. The late payment fee which is currently $5.00 is proposed to be $5.00 or 1% of the balances whichever is greater. She also reviewed the Mayor & Council Water Policies Section Water Rates & Charges Cost of Service basis. -Section 2a.1 Potable rates, 2a.3 (b) Reclaimed rates. Ms. Seng mentioned that the results of the Cost of Service Study revealed that Single Family Residential and Irrigation customer classes were not generating revenue sufficient to meet their cost of service.
-Reviewed Table 2 Revenue Neutral Rate Restructuring schedule FY 2013/14 thru FY 2017/18.
Reviewed the Table for the Summary of All funds.
Ms. Seng reviewed the Table for Monthly charges & percent Increase Comparison
-Residential & Irrigation Customers per meter size Total Monthly usage -Commercial & Master Metered Multi-Family Customers
Schedule: 10/10: Finance Subcommittee meeting 10/14: WUC review & recommendation 11/20: Town Council -Notice of intent to increase rates 1/15/2014: Public Hearing on proposed rate increase -2/15/14: Rates would become effective 3/15/14: Begin billing using the new rates
MOTION: A motion was made by Vice Chair Tustison and seconded by Commissioner Shapiro to Recomend Approval that the Town Council proceed with the Notice of Intent to Increase Water Rates with the Revenue Neutral Rate Restructuring for FY 13-14 as detailed in the Preferred Financial Scenario.
MOTION carried, 5-0.
Mr. Saletta gave an update on the Impact Fees and the factors that were causing a change and reduction in the impact fees. Mr. Saletta reported that the Water Utility was in excellent financial situation and that Legislation only limits a ten year time frame for impact fee calculations. The projects included in the 10 year time frame are less expensive than previously calculated for the entire water service build out. Mr. Saletta mentioned that the Impact Fees will be reduced for residential but commercial and multi-family irrigation will experience some increases.
Mr. Saletta also gave an update on the Impact Fee Schedule & Approval Process. Chair Milkey mentioned it would be extremely valuable for the Commission to listen to the public's feedback on the website. No action was required or taken on this item.
The Commission unanimously agreed to reschedule the November 11 meeting.
MOTION: A motion was made by Commissioner Shapiro and seconded by Vice Chair Tustison to Approve to reschedule the November 11 meeting to November 12 due to the Veterans Day Holiday.
MOTION carried, 5-0.
Councilmember Hornat reported on several items scheduled for the October 16th T.C. Meeting.
-Approval for sale of recreational vehicles at the O.V. Market Place.
-Farmers Market success and new location: Steam Pump Ranch
-Utility Tax and 5 year financial forecast
There was no report.
There was no report.
There was no report.
Ms. Seng reported on:
-Billing insert: High Water Use Action Plan
Customer Service Report -September 2013
-Total Metered Connection as of 9/30/2013: 18,843
-Actual New Meter Installations as of 9/30/2013: 31 Current: 9
-Projected EDU's for FY 13-14: 300
-Actual EDU's as of 9/30/13: 43 Current: 17
-Meter Replacements Program FY 12-13: 6,648
-Water Audits for FY 13-14: 40 Current: 20
Mr. Saletta reported on CIP Projects:
-Additional 400 AFY of CAP Wheeling to Oro Valley, Northern & Hardy Road area
-Additional 100 AFY of CAP Wheeling to Countryside service area Camino de Oeste North of Linda Vista. These two project will deliver bring in an additional of 500 AF of CAP water.
Design Projects
-Production Facility: Install retention basin liner, header wall and pipe outlet revisions.
-Design for new security wall Well CS2
-FY 13-14 Capital Improvement -Valve replacement program, well flow meter replacement and system efficiency program for all booster pumps
Mr. Saletta reported on Potable and Reclaimed Water System September 2013:
-Annual Water Production
-Monthly Water Production Report - 2012/13
-Daily Demand Operations Report and precipitation
-Reclaimed Water Deliveries
Mr. Saletta reported on:
-Arizona & Colorado Streamflow - September 2013
-Inflow Historical into Lake Powell
-Colorado River Water Supply for Lake Mead and Lake Powell
10/16: Town Council meeting - Reclaimed IGA Extension
11/06: Town Council meeting
11/12: WUC meeting