MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, November 9, 2015
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
 
 
 
CALL TO ORDER – AT OR AFTER 6:00 P.M.

ROLL CALL

PRESENT:
Richard Davis, Chair
Richard Reynolds - Vice Chair
Javier Arriaga, Commissioner
Anne Campbell, Commissioner
Winston Tustison, Commissioner
Shanna Weagle, Commissioner

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 12, 2015 MINUTES


Click here for Item #1

Commissioner Weagle requested the following changes to agenda items #4 and #5 of the minutes.
-Item #4 - Not consistent with the other items. Request to add discussion items and bullet points.
-Item #5 – 1st paragraph add text: (January 2015 data) 2nd paragraph change text:  (was to is) and (were to are).

Staff will make changes to the October 12, 2015 minutes and bring it back to the Commission.

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga to approve the October 12, 2015 minutes as presented.

MOTION failed, 2-4 with Chair Davis, Richard Reynolds - Vice Chair Chair, Commissioner Campbell, and Commissioner Weagle opposed.

2.

DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER RATES ANALYSIS (Commissioner Tustison and S. Seng)


Click here Item 2 Water Rates Analysis PPT

Click here Item 2 Draft- Water Rates Analysis Report November 2015

Commissioner Tustison reported that the Finance Subcommittee met several times to discuss the Water Rates Analysis and came to a conclusion about the proposed water rates. Ms. Seng reported that the first draft of the Water Rates Analysis was emailed to the Commission October 28th for questions and comments. All comments have been incorporated along with staff revisions. A second draft was emailed to the Commission November 5th. 

Ms. Seng presented an update on the Water Rates Analysis. A Notice of Intent will be presented to Council December 2, 2015. The Public Hearing is scheduled for January 6, 2016.

Commissioner Weagle discussed the following: - Development of alternate water rate scenarios
- Moving the CAP delivery up in time
- Steam Pump Ranch well timing
- Growth rates – meters and service units
- Comparison of prior year’s water rates analysis report to this year’s report
- Comparison of rate increase of other water utilities

The Commission discussed:
- Comparison of rates to other water utilities
- Debt service coverage ratio was met
- That the proposed rate increase was reasonable and appropriate

There was no further discussion.

MOTION: A motion was made by Commissioner Weagle request that staff create one or more alternative scenarios to consider before making a recommendation to Council. Motion failed due to lack of second.

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga recommend that Town Council approve the increase in water rates as detailed in the Preferred Financial Scenario FY 2016 and adopt a Notice of Intent to increase water rates fees and charges.

MOTION carried, 5-1 with Commissioner Weagle opposed.

3.

DISCUSSION AND POSSIBLE ACTION REGARDING THE ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT     (Commissioner Reynolds and Commissioner Weagle) This will be a workshop to discuss and review the Oro Valley Water Utility Commission Annual Report format.


Click here for Item #3a WUC Annual Report Executive Summary

Click here for Item #3b WUC Article 15-4

Click here for Item 3c 2014 CWAC Annual Report

Commissioner Reynolds discussed:
-The Oro Valley Water Utility Commission Annual Report was not based on what the Commission was doing but on the Water Utility accomplishments. 

Commissioner Weagle discussed:
-Article 15-4, Section 15-4-5 and 15-4-2 of the Town Code 
-Modifying the report and expanding information in the executive summary
-Changing the format and developing a new template for the Annual Report
 
There was consensus that the Commission will work on a new template for the Annual Report. The template will be forwarded to staff for review and to the Commission for their future consideration. No formal action was taken or required.

4.

DISCUSSION AND POSSIBLE ACTION REGARDING CANCELLATION OF THE DECEMBER 14, 2015 ORO VALLEY WATER UTILITY COMMISSION MEETING (Chair Davis) 


Chair Davis requested feedback from Commission regarding the cancellation of the December 14, 2015 Water Utility Commission meeting.

MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Arriaga cancel the December 14, 2015 Water Utility Commission Meeting.

MOTION carried, 5-1 with Commissioner Weagle opposed.

5.

TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat)


Councilmember Hornet reported on:
-Fry’s gas station, 1st and oracle - (Approved 5-0)
-Nakoma Sky – (Approved 5-2)
-Hand count audit for Oro Valley votes 
-11/18: Town Council meeting
-Oro Valley final election status

6.

SUBCOMMITTEE/COMMISSIONER REPORTS


a ) Finance Subcommittee (Commissioner Tustison)


Commissioner Tustison had no report.

b.

Conservation Subcommittee (Commissioner Davis) 


Commissioner Davis had no report.

c.

Water Resources Subcommittee   (Commissioner Reynolds)


Commissioner Reynolds had no report.

7.

STAFF REPORTS


a.

Capital Projects   (B. Jacklitch)


Mr. Jacklitch reported the following:
Design projects                  
-Tangerine Road reclaim water main: The design is 100% complete. Tentative construction:  January 2016
-Lambert Lane & La Canada potable main relocation:  The design is 90% complete. Additional pot holing has been done in the past weeks.  Start date: April or May 2016
-La Cholla Road Widening: This project is part of a RTA project Location: Hardy Road & La Cholla/north to Tangerine. Oro Valley will have to relocate existing mains across La Cholla. Design phase will begin December 2015.
-Arizona Power Authority Allocation: Staff met with Tucson Water Electronic Power (TEP) in October to discuss bill crediting. All of the participants agree with the bill crediting concept. The Utility is still waiting to hear back from TEP regarding their proforma.

8.

DIRECTOR’S REPORT  (P. Saletta)


a.

Colorado River Reports


Click here Item 8a. Arizona_Colorado Streaflow & CO. River Water Supply_Oct. 2015

Click here Item 8a Arizona & Colorado Snow Water Equivalent 11.6.2015

Mr. Saletta reported on the Arizona and Colorado Streamflow reports dated October 2015 and Colorado River Water Supply - Lake Powell and Lake Mead reservoir capacities dated October 26, 2015. He also reported on Arizona and Colorado – Current Snow Water Equivalent dated November 6, 2015.

b.

Upcoming Meetings


11/18/2015: Town Council meeting: Consent Agenda item - Amendment 3 to Reclaimed IGA
12/02/2015: Notice of intent for water rates
12/10/2015: Town of Oro Valley Volunteer Appreciation reception
1/06/2016: Town Council meeting: Agenda Item - Public Hearing on water rates
1/11/2016: WUC meeting

FUTURE AGENDA ITEMS 
-2016 Commission work plan and tentative calendar to be tentatively scheduled for January 11, 2016 WUC meeting. (Commissioner Weagle and seconded Commissioner Campbell)


CALL TO AUDIENCE


There were no speakers.

NEXT MEETING:  DECEMBER 14, 2015  LOCATION: HOPI CONFERENCE ROOM


ADJOURNMENT:


MOTION: A motion was made by Richard Reynolds - Vice Chair Chair and seconded by Commissioner Campbell to adjourn the meeting.

MOTION carried, 6-0.