MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, November 10, 2014
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
 
 
 
CALL TO ORDER - AT OR AFTER 6:05 P.M.

ROLL CALL

PRESENT:
Robert Milkey, Chair
Richard Davis, Vice Chair
Javier Arriaga, Commissioner
Anne Campbell, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
Richard Verlaque, Commissioner

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

1.

APPROVAL OCTOBER 13, 2014 MINUTES


Click here for Item #1

The Commission made several minor corrections to page 1 of the minutes.

MOTION: A motion was made by Vice Chair Davis and seconded by Commissioner Campbell to approve the October 13, 2014 Water Utility Commission minutes as amended.

MOTION carried, 7-0.

2.

DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER RATES  ANALYSIS  (Chair Milkey and S. Seng)


Click here for Item 2 Power Point Presentation

Click here for Item 2A -Supplemental Information

Click here for Item 2B Summary of Funds-Operating Budget

Chair Milkey mentioned that the Finance subcommittee reviewed the Water Rates Analysis report and made several changes which have been incorporated. He recommended forwarding the report to the Commission for approval.

Ms. Seng gave a power point presentation and reviewed the following: Water Rates Key assumptions; Groundwater Preservation Fees; Cash Reserves; Baseline Financial Scenario (Operating Fund, GPF, Cash Reserves and Debt Service Coverage); Proposed Solution.

-Proposed Commodity & GPF Rates for 5-Year Period; -Draft Preferred Financial Scenario

-Proposed Commodity & GPF Rates For FY 2014-15. Ms. Seng pointed out the decreases in the Potable & Reclaimed GPF. These are the rates the Commission will recommend to Council for their consideration.

-Impact to customers by meter size

-Service Fees & Charges

-Executive Summary pages 2, 8 and 18;  -Proposed Security Deposits; -Proposed Meter Installation Fees.

-Proposed Water Rates tables.

Commissioner Campbell suggested posting a bond as payment instead of raising the security deposits fee. Mr. Saletta mentioned bond collection could be difficult and he would rather avoid going through a third party.

Schedule: 11/10: WUC Meeting- rate recommendation  -12/03: Town Council Notice of Intent -12/10: Publish NOI in Daily Territorial  -1/07/15: Town Council -  Public Hearing on proposed rates  -2/07/15:  If adopted, rates become effective  -3/10/15:  New rates are billed

The Commission agreed no changes were necessary to the Final Preferred Financial Scenario.

Ms. Seng mentioned that Staff is looking for a recommendation from the Commission to move the Water Rates Report dated November 2014 forward to Town Council. 

MOTION: A motion was made by Commissioner Verlaque and seconded by Vice Chair Davis to approve that the Water Utility Commission forward the rate increases and decreases detailed in the Water Rates Report dated November 2014 to the Town Council for their consideration.

MOTION carried, 7-0.

3.

DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR THE 2017 HOOVER DAM ELECTRIC POWER REALLOCATION      (Commissioner Reynolds and R. Jacklitch)


Click here for Item #3

Commissioner Reynolds reported that the Water Resources Subcommittee met October 21st to discuss the Arizona Power Authority Hoover Dam Electric Power Reallocation.

Mr. Jacklitch gave a Power Point Presentation on the following:

-Hoover Post 2017 Allocation of Capacity and Energy 2017 and 1987 to States: Arizona, California and Nevada

-Hoover Post 2017 Reallocation APA Process. The formal application process will start February 2015. Oro Valley will request up to 2.5 MW and will need to negotiate with TEP for transmission cost and back up supply.

-Table of APA Customer Hoover Power Allocation

-Potential Savings. Oro Valley will need to sign a contract with APA and a wheeling transmission and back up agreement with TEP. 

Schedule:
11/10/2014: Commission recommends to Council the APA Hoover Power application.tion. 
1/7/2015: Mayor and Council request for approval.
2/17/2015: Submit application to APA.

Chair Milkey encouraged staff to apply for application and also look into TEP energy wheeling costs. Mr. Saletta indicated that the Commission and Town Council will be briefed regarding the APA application process and TEP energy wheeling costs.

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Reynolds moved to recommend that Town Council approve an application with the Arizona Power Authority for Hoover Dam Post 2017 Power Reallocation.

MOTION carried, 7-0.

4.

DISCUSSION AND POSSIBLE ACTION REGARDING THE PURCHASE OF LONG-TERM STORAGE CREDITS FROM THE BUREAU OF RECLAMATION  (P. SALETTA)


Click here for Item #4

Click here for Item #4a

Mr. Saletta reported that the Utility received a letter from the Bureau of Reclamation soliciting offers to purchase long term storage credits. The Bureau of Reclamation has been involved in the Lower Santa Cruz Managed In Channel recharge project in the Tucson Active Management Area.

Mr. Saletta gave a Power Point Presentation on the following:

Review: -Current & Projected OVWU Storage Credits

Review: -Storage Accounts Management and Use

Review: -Cost Comparison

Review: -Purchase of Long Term Storage Credits

Mr. Saletta mentioned that this item will be presented to Town Council on December 3, 2014. Staff is looking for a recommendation from the Commission to recommend to Council to move forward with the purchase of Long-term Storage Credits from the Bureau of Reclamation.

MOTION: A motion was made by Commissioner Arriaga and seconded by Commissioner Reynolds recommend to Council to move forward with the purchase of Long-term Storage Credits from the Bureau of Reclamation.

MOTION carried, 7-0.

5.

DISCUSSION AND POSSIBLE ACTION REGARDING THE CANCELLATION OF THE DECEMBER 8, 2014 WATER UTILITY COMMISSION MEETING  Chair Milkey)


Chair Milkey mentioned that today's action items will be forwarded to Town Council between December and January. He requested feedback from the Commission whether to cancel the December 8, 2014 Water Utility Commission meeting.

The Commission unanimously agreed to cancel the December 8, 2014 Water Utility Commission Meeting.

MOTION: A motion was made by Commissioner Verlaque and seconded by Commissioner Campbell cancel the December 8, 2014 Water Utility Commission Meeting.

MOTION carried, 7-0.

Chair Milkey expressed his gratitude and appreciation, and that it was an honor serving the Commission for the past 6 years. He thanked fellow Commissioners and staff for their patience, knowledge and expertise in water issues. He also thanked the Town for providing training and educational opportunities.

Commissioner Shapiro mentioned she enjoyed serving the Commission. Commissioner Verlaque also thanked staff for their knowledge and expertise relating to water issues.

6.

TOWN COUNCIL MEETINGS/COMMUNICATIONS          (Councilmember Hornat)


Councilmember Hornat had no report.

7.

SUBCOMMITTEE/COMMISSIONER REPORTS


a.

Finance Subcommittee            (Chair Milkey)


Chair Milkey had no further report.

b.

Conservation Subcommittee    (Commissioner Davis)


Commissioner Davis reported the following:

-Social Media: The Conservation Subcommittee met on 11.10.2014 with Jessica Hynda, Town Managers office with regards to social media.
-AquaHawk: 7,000 AMI meters have been installed only 700 residents have registered with AquaHawk. Ms. Boyce has contacted about 200 residents that have registered but have not entered their water thresholds. The Utility will continue to explore ways to use AquaHawk as a conservation tool to help Town residents with conservation.

-Your Voice Our Future: -Discussion items:  -Storm Water   -Water and fluoride issue

c.

Water Resources Subcommittee          (Commissioner Reynolds)


Commissioner Reynolds had no report.

8.

STAFF REPORTS


a.

Customer Service Report    (S. Seng)


Click here for Item 8a

Ms. Seng reported the following: 
Total Metered Connections as of 10/31/14:           FY 14-15: 19,077
Actual New Meter Installations as of 10/31/14:      FY 14-15: 68     Month: 17
Actual EDU's as of 10/31/14:                               FY 14-15: 156    Month: 28

AMI Meter Installations:  7,912
AMI Installations for FY 14-15 will resume in December.
Estimated completion for project is December 2015.

Water Audits as of 10/31/14:  FY 14-15: 52          Month: 15
Total audits completed from inception:  1,852

b.

Capital Projects      (R. Jacklitch)


Mr. Jacklitch reported the following:
Design Projects
-Countryside service area water main replacement design is complete.       -Construction Schedule: January 2015
-Tangerine Road: This project is part of an RTA project. The Water Utility will relocate some sections of the existing reclaim water main and potable water mains.  Design schedule: January 2015 
-Lambert Lane: The Town plans to reduce the grade (elevation) of the roadway an additional 12 feet to the west of La Canada. Turning lanes will be added. The Utility plans to install (relocate) a new 12-inch main as part of this project.  Design schedule: January 2015
-Naranja Road: Several safety and road improvements will be taking place. The Utility also plans to install water main crossings for future blending of groundwater and CAP water. This project will begin in December 2014.

c.

Potable and Reclaimed Water System Report  (D. Ruiz)


Click here for Item 8c.

Mr. Ruiz reported the following: 

-Total Annual Water Production - October 2014 
-2013-2014 Monthly Water Production Report
-Precipitation & Storage Daily Demand - October 2014 
-2013-2014 Reclaimed Water Deliveries
-Reclaimed Water System

9.

DIRECTOR’S REPORT                (P. Saletta)


a.

Colorado River Streamflow and Snow Reports


Click here for Item 9a.

Mr. Saletta reported the following:
-Arizona Stream flow  - October 2014
-Colorado Stream flow -October 2014

-Colorado River Water Supply - October 2014

b.

Upcoming Meetings


11/19:  Town Council meeting
12/03:  Town Council meeting  Agenda Items: Water Rates, Long Term Storage Credits, Water Utility Commission Appointments 
12/04:  Central Arizona Water Conservation District Board meeting, Location: Tucson Casino del Sol 
12/11:  Volunteer dinner
1/07/15: Town Council meeting  Agenda Items: -Public Hearing on Water Rates    -Arizona Power Authority Hoover Post 2017 Reallocation Application
1/12/15: Water Utility Commission meeting

Mr. Saletta thanked Chair Milkey, Commissioner Shapiro and Commissioner Verlaque for their work, dedication and service to the Water Utility Commission.


FUTURE AGENDA ITEMS


There were no future agenda items.

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.

NEXT MEETING:  January 12, 2015  LOCATION: HOPI CONFERENCE ROOM


ADJOURNMENT: 7:40 p.m.

MOTION: A motion was made by Commissioner Shapiro and seconded by Vice Chair Davis adjourn the Water Utility Commission meeting.

MOTION carried, 7-0.