CALL TO ORDER - AT OR AFTER 6:00 P.M.
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PRESENT: |
Robert Milkey, Chair
Richard Davis, Vice Chair
Javier Arriaga, Commissioner
Ann Campbell, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
Richard Verlaque, Commissioner
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Chair Milkey welcomed new Commissioners, Javier Arriaga and Anne Campbell.
STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
David Ruiz, Engineering Division Manager
Robert Jacklitch, Project Manager
There were no speakers present.
MOTION: A motion was made by Commissioner Arriaga and seconded by Vice Chair Davis to approve the November 12, 2013 minutes.
MOTION carried, 7-0.
Chair Milkey turned the election process of Chair and Vice Chair over to Mr. Saletta.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Reynolds to Appoint Robert Milkey for Chair and Rick Davis for Vice Chair of the Water Utility Commission 2014.
There were no other nominations.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Campbell cease nominations and elect Robert Milkey as Chair and Rick Davis as Vice Chair for the Water Utility Commission 2014.
MOTION carried, 7-0.
Chair Milkey mentioned that there would be appointments to the subcommittees in February.
Ms. Hamlin gave a power point presentation regarding "Your Voice, Our Future" project and public outreach results. Ms. Hamlin stated that she is currently working on the Town's General Plan update and she would be requesting some feedback and comments from the Commission. Ms. Hamlin pointed out several of the survey highlights: -What are the things you most value about living in Oro Valley - What do you think are some of the biggest challenges facing Oro Valley in the next ten years? -What kind of community should Oro Valley be? -What should the Town be known for?
Ms. Hamlin requested the Commission's participation in the survey and noted their comments and ideas on these three questions.
Ms. Hamlin tallied the results and thanked the Commissioners for their participation and comments.
Ms. Seng gave a Power Point presentation on the WIFA loan and how the AMI and Meter Replacement Project would be financed. The loan will finance Phases 2, 3 and 4. There will be no loan origination or bond underwriter's fees. The terms of the WIFA loan will be 15 years at an annual interest rate of approximately 2.92%. The annual debt service estimated to be $413,000 per year. Ms. Seng mentioned that the Water Utility is asking to borrow up to $5,000,000 but will not have to necessarily use the full amount of the loan. A resolution will be presented to Town Council, January 15th authorizing the Water Utility Director and Stacey Lemos to execute the loan documents.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Arriaga to Recomend Approval that Town Council approve the loan for the Water Infrastructure Finance Authority of Arizona and that the amount not to exceed $5,000,000.00 to finance phases 2, 3 and 4 of the Advanced Metering Infrastructure and Meter Replacement Project.
MOTION carried, 7-0.
Ms. Seng reviewed the Water Rates Analysis.
-Reviewed: Water Rates Analysis Preferred Financial Scenario: -Change in rate structure -Increase in commodity rates
-Increase in plan review construction inspection fees and late fee -No increase in base rates -No increase in reclaimed water rate -No increase in Groundwater Preservation Fee
-Reviewed: Financial Impacts to Customers. The Water Rates Analysis Report includes monthly bill impacts for all customer classes and the proposed increases in all customer classes.
-Reviewed: Water Rates Process and schedule.
This agenda item was previously approved by the Commission. Ms. Seng indicated that No action was required on this item.
Chair Milkey distributed a draft statement on behalf of the Commission in support of the water rate structure and increase. The Commission unanimously agreed that Chair Milkey could present the statement to Town Council January 15th meeting.
MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Campbell to approve that Chair Milkey of the Water Utility Commission present the statement to Council in support of the recommendation to approve the increase in water rates fees and charges for the Town of Oro Valley Water Utility.
MOTION carried, 7-0.
Mr. Saletta gave an update on the Water Utility Impact Fees. Mr. Saletta discussed the new requirements, land use assumptions and Infrastructure improvements plan. The Land Use Assumptions and Infrastructure Improvements Plan will be presented to Town Council January 15th.
Mr. Saletta also reviewed the approval process and schedule. Mr. Saletta mentioned that staff received several comments from Southern Arizona Home Builders Association and the Town and Water Utility have been working to address their concerns and respond to their comments.
No action was required or taken on this item.
Councilmember Hornat reported on:
-Public outreach: Update Sun City on water resources, costs, usage and monitoring methods.
Chair Milkey encouraged the Commissioners to attend Council meetings or listen to the meetings and public hearings through Granicus.
There were no subcommittee meeting activities. Vice Chair Davis reported that Karn Boyce Water, Conservation Specialist would be giving a presentation in February on conservation and children's educational program.
Ms. Seng reported on the following:
-AMI Program: Phase 1 in Oro Valley was completed in June of last year. A total of 4,000 to 4,500 meters have now been installed. The next phase will begin in April when an additional 4,000 meters will be installed by September. This will eliminate one entire billing cycle of meter reading. Customers are now learning to use the web portal to tract their water consumption and detect leaks. Leak adjustments in Countryside have been reduced by 47% and the utility's lost and unaccounted water has been reduced by 5%.
Customer Service Report
-Total Metered Connections as of 12/31/2013: 18,872
-Projected Meter Installations for FY 13-14: 200
-Actual New Meter Installations as of 12/31/13: 60
-Projected EDU's for FY 13-14: 300
-Actual EDU's as of 12/31/13: 113
Meter Replacements
FY 13/14: 138 as of 12/31/2013
Water Audits
FY 13/14: 83 as of 12/31/2013
Mr. Jacklitch reported on:
CIP Projects: -Continue CAP Wheeling of additional 500 AF. The design phase of this project is complete. -Construction date: March 1, 2014 -Completion: May 1, 2014. A customer billing insert was sent notifying all residents that could be impacted by the construction. -Location: Harding and Northern. A flushing program for all water mains will begin prior to construction. Staff has received a Water Quality and Compatibility draft report for the project.
-Additional 100 AF Tucson Water CAP wheeling to Countryside Service area is on schedule.
Design Projects -Reclaimed Facility: There are several small design projects scheduled for this facility.
-Counstryside Service Area: Completed a security wall for one of the wells in the area Location: Hartman Lane Construction date: 3/1/2014
Mr. Ruiz reported on the Potable and Reclaimed Water System - December 2013
-Total Annual Water Production
-2012-13 Monthly Water Production Report
-Daily Demand Operations Report
-Reclaimed Water Total
-2012-2013 Monthly Reclaimed Water Deliveries
Mr. Ruiz addressed Vice Chair Davis question regarding water contamination and prevention at well sites. He explained that several of the precautionary steps have been taken by the Water Utility and that a vulnerability assessment program is in place. The Water Utility also has an Emergency Response Plan that addresses situations regarding contamination and system security. Water Utility staff attends annual emergency response training.
Mr. Saletta reported on:
-Arizona & Colorado Current Snow Water Equivalent -January 2014
-Colorado River Water Supply Report Total Content - Lake Powell & Lake Mead- December 30, 2013
Mr. Saletta reminded the Commissioners that the Water Utility's and Town Council meetings can be heard on Granicus. Mr. Saletta also mentioned that a luncheon will be planned for John Hoffmann and Winston Tustison in the near future.
-1/15: Town Council meeting: Agenda Items: WIFA Loan -Water Rates -Impact Fees
-1/16: Public Budget Information Session
-2/05: Town Council meeting
-2/10: WUC meeting
There were no speakers present.