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MINUTES WATER UTILITY COMMISSION REGULAR SESSION October 14, 2019 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE

REGULAR SESSION AT OR AFTER 5:00 PM

CALL TO ORDER - Chair McMillan called the meeting to order at 5:00 p.m.

ROLL CALL

Present:	Byron McMillan, Chair
	Anne Campbell, Vice Chair
	Chuck Hollingsworth, Commissioner
	Charlie Hurt, Commissioner
	Robert Milkey, Commissioner
	Winston Tustison, Commissioner
Absent:	Richard Reynolds, Commissioner
Staff Present:	Peter A. Abraham, P.E., Water Utility Director
	Shirley Kiel, Water Utility Administrator
	Lee Jacobs, P.E., C.P.M, Engineering Division Manager

CALL TO AUDIENCE - No speakers.

REGULAR SESSION AGENDA

REVIEW AND APPROVAL OF THE SEPTEMBER 9, 2019 REGULAR SESSION MEETING MINUTES


				Motion by Commissioner Robert Milkey, seconded by Commissioner Charlie Hurt to approve the September 9, 2019 minutes as written.

				Vote: 6 - 0 Carried

	2.			DISCUSSION ON TOWN POLICIES WITH RESPECT TO TOWN BOARDS AND COMMISSIONS
				Mr. Abraham reviewed the purpose of the revisions, intent of the policy and reviewed the policy language. Discussion ensued amongst staff and the Commission. The Commission provided the Water Utility Director with questions to research for further clarification.

	3.			TOWN COUNCIL MEETINGS/COMMUNICATIONS Chair McMillan moved agenda Item 7 (Town Council Meeting/Communications) after Item 2. Councilmember Piña presented the following: decision to keep 36-holes of golf and discussion will continue on paying for the improvements; Oracle Marketplace purchase and property improvements (planning phase) and the Police Chief recruitment process. Councilmember Piña discussed the intent of the Town policy change as discussed in Item 2. She plans to share the Commission's concerns with the Town Manager.

	4.			UPDATE AND DISCUSSION ON ORO VALLEY WATER UTILITY DEVELOPMENT IMPACT FEE ANALYSIS
				Mr. Abraham presented the following: - Infrastructure Improvement Plan and project costs were updated - Impact Fee Analysis is near completion. The Utility will combine the two current impact fees funds into one impact fee fund called the Water Resources and System Development Impact Fee fund. Staff will now begin the stakeholder and public review process. - Next steps

	5.			DISCUSSION ON WATER RATES ANALYSIS INCLUDING SCHEDULE, ASSUMPTIONS AND RECLAIMED COST ANALYSIS
				Ms. Kiel reviewed the following work in progress: - Impact fee analysis, updating Northwest Recharge, Recovery and Delivery System (NWRRDS) project costs, reclaimed water cost allocation analysis, finalizing 5-year capital improvement program Ms. Kiel presented the following: - Assumptions used in the water rates analysis - Next steps: baseline, revenue requirements, strategies to achieve revenue, development of a financial pro forma - Tentative schedule Discussion ensued amongst the Commission and staff regarding the CAP water cost increase.

	6.			DISCUSSION AND POSSIBLE ACTION ON RESCHEDULING THE JANUARY WATER UTILITY COMMISSION MEETING TO MONDAY, JANUARY 6TH AT 5 P.M.


				Motion by Vice Chair Anne Campbell, seconded by Commissioner Robert Milkey to change the January meeting date to either January 7th or January 8th, depending on what works best for the majority of the Commission members.

				Vote: 6 - 0 Carried

	7.			DISCUSSION AND POSSIBLE ACTION ON RESCHEDULING THE FEBRUARY WATER UTILITY COMMISSION MEETING TO MONDAY, FEBRUARY 3RD AT 5 P.M.


				Motion by Commissioner Robert Milkey, seconded by Commissioner Charlie Hurt to move the February meeting date to February 3, 2019.

			Vote: 6 - 0 Carried

	8.		SUBCOMMITTEE/COMMISSIONER REPORTS

		A.	FINANCE SUBCOMMITTEE
			Chair Tustison reported there were many additional factors to adjust this year for the rates analysis and the Finance Subcommittee will likely have many more meetings to review these changes.

		B.	WATER RESOURCES AND CONSERVATION SUBCOMMITTEE Chair Campbell reported the Subcommittee met last month and will meet again in December. The group is working to measure exterior water usage, review repurposing the water allocated for Vistoso Golf Course and determine how to offer a welcome kit.

	9.		STAFF REPORTS

		A.	WATER SUPPLY AND USAGE REPORT
			Mr. Abraham reviewed the water production information for the Countryside and Oro Valley water service areas. The statistics illustrate the calendar third quarter (January - September).

		B.	CAPITAL PROJECTS
			Mr. Jacobs reviewed the following 19/20 capital projects: Well C-8 rehabilitation; MAG meter wells and boosters; Nakoma Sky well: Steam Pump well; Lambert Lane Hydropneumatic (HP) tank (Well D-8); La Cañada Booster Station; El Conquistador Booster Station improvements; Rancho Vistoso HP tank replacement; fire protection system backflow retrofits; production facility wall upgrades; valve replacement program; La Cholla widening and water modifications; Naranja reservoir relining; well and booster electrical sub-metering and NWRRDS partnered and independent portions.

	10.		DIRECTOR'S REPORT
			Mr. Abraham reviewed the following: - Upcoming meetings and events - Southern Arizona Water Users Association's Beyond Drought Contingency Plan Conference

FUTURE AGENDA ITEMS - No items.

ADJOURNMENT


				Motion by Commissioner Winston Tustison, seconded by Commissioner Chuck Hollingsworth to adjourn the meeting at 6:45 p.m.

Vote: 6 - 0 Carried

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 14th day of October, 2019. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 14th day of October, 2019.

___________________________
Danielle Tanner
Senior Office Specialist