MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, September 8, 2014
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
CALL TO ORDER - AT OR AFTER 6:00 P.M.
Commissioner Reynolds attended by phone.
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PRESENT: |
Robert Milkey, Chair
Richard Davis, Vice Chair
Javier Arriaga, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
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| EXCUSED: |
Anne Campbell, Commissioner
Richard Verlaque, Commissioner
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STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Utility Administrator
Robert Jacklitch, Project Manager
There were no speakers.
MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Shapiro to approve the June 9, 2014 minutes.
MOTION carried, 5-0.
Chair Milkey reported that the Finance Subcommittee met August 19th to discuss the Water Rates Analysis. The report is still in its preliminary stages and no action is required on this item.
Ms. S. Seng gave a power point presentation and reviewed the Water Rates Analysis report key assumptions: Growth, Inflation, Personnel, Operations and Maintenance, Capital Projects, No change in rate design.
She mentioned that the Groundwater Preservation Fee (GPF) would be accounted for in the Water Utility's Operating Fund not the AWRDIF Fund. The GPF will also be accounted for separately in the Water Rates Analysis Report and will have its own revenue, expenditures and cash balance.
Ms. Seng reviewed the Water Rates Analysis schedule.
Chair Milkey mentioned that the Commission members were welcomed to attend the September 23rd Finance Subcommittee meeting. Chair Milkey mentioned that one of the difficulties was trying to figure out how to balance the need for cash reserves and meeting the debt service coverage requirement of 1.3 times annual debt service.
Chair Milkey opened and indicated that the Groundwater Preservation Fee was discussed at the last Finance Subcommittee meeting. Mr. Saletta reported on several long term possibilities for the Groundwater Preservation Fee. He reported that the GPF will continue to pay for the renewable water and related debt. The utility will be looking at GPF revenues to possibly help fund capital infrastructure replacement or help pay for Tucson Water's annual CAP water wheeling payments. These options will be discussed at a future Finance Subcommittee Meeting.
Mr. Saletta reported that the capital components of Tucson Water wheeling charges and the CAWCD CAP water allocations are paid from the GPF. Mr. Saletta also reviewed the 2003 Groundwater Preservation Fee Policy.
Chair Milkey opened this item indicating that the Finance Subcommittee discussed the Cash Reserve Policy at their last meeting. He reported on the Water Utility's 1.3 debt operating income and cash reserves. Mr. Saletta stated that as cash reserve fund builds up it could be used for capital projects rather than incurring further debt. He reviewed the Cash Reserve Policy. It will be important for the Water Utility and the Commission to take a closer look at the cash reserve balance requirements under the existing policy. This policy can be reviewed after the water rate analysis and will be discussed at a future Finance Subcommittee meeting.
There was no report.
There was no report.
Commissioner Davis reported there was no meeting. Ms. Boyce is moving forward with public education and has contacted Ms. M. Nowack and L. Gallardo to update information on the website.
Commissioner Reynolds mentioned that a meeting is planned 10/08/2014 to discuss the Arizona Water Power Authority application process.
Mr. Jackitch reported on the Water Resources Subcommittee's schedule.
Mr. Jacklitch mentioned that in 2017 Hoover Dam will have excess power available to those parties interested in purchasing the power at a lower rate power. The APA is currently working on a draft application.
Ms Seng reported the following:
Total Metered Connections as of 8/31/14: FY 14-15: 19,062
New Meter Installations as of 8/31/14: FY 14-15: 36 Month:13
EDU's as of 8/31/14: 95 Month: 13
Meter Replacements as of 8/31/14: FY 14-15: 1,235 Month: 535
Wter Audits as of 8/31/2014: FY 14-15: 24 Month: 13
Mr. Jacklitch reported the following:
-Delivery of 100 a/f CAP water to Countryside Service area began in March
-Delivery of 400 a/f CAP water to Northern and Hardy areas began in August
-Naranja booster station blending of E-zone water with CAP water.
-Security wall for Countryside Well CS2
-R.V Reclaim Facility rebuilt existing retention basin and installed a new chlorine delivery system
-Naranja Park reclaimed water main is complete
Design Projects
-Install 12 inch water main in Countryside area
-Tangerine road widening project
-Lambert Lane intersection of La Canada water main relocation
-Annual Water Production Report - August 2014
-Monthly Production Report 2013-14
-Precipitation & Storage Daily Demand - August 2014
-Reclaimed Water Deliveries - August 2014
-2013-14 WUC Reclaimed Water System
9/12: State of the Town - Location: Hilton Resort
Arizona Streamflow - August 2014
Colorado Streamflow - August 2014
Total System Content - August 2014 Lake Powell & Lake Mead
Meetings: Finance, Conservation and Renewable Water Subcommittees
October: Advertise for two Water Utility Commission vacancies (Countryside and Town At-Large Resident)
Water resources and long term conservation measures (Commissioner Arriaga)
-Water supply, CAP, reclaimed water in relation to the drought
Mr. Saletta mentioned that the conservation measures can be addressed in January, and the Drought Preparedness Plan and water resources topics will be addressed at the next Water Resources Subcommittee meeting.
There were no speakers.
MOTION: A motion was made by Vice Chair Davis and seconded by Commissioner Shapiro to adjourn the meeting.
MOTION carried, 5-0.