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MINUTES WATER UTILITY COMMISSION SPECIAL SESSION JANUARY 7, 2020 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE

SPECIAL SESSION AT OR AFTER 6:00 PM

CALL TO ORDER - Chair McMillan called the meeting to order at 6:03 p.m.

ROLL CALL

Present:	Byron McMillan, Chair
	Chuck Hollingsworth, Commissioner
	Charlie Hurt, Commissioner
	Tom Marek, Commissioner
	Robert Milkey, Commissioner
	Rick Reynolds, Commissioner
	Winston Tustison, Commissioner
Staff Present:	Peter A. Abraham, P.E., Water Utility Director
	Shirley Kiel, Water Utility Administrator
	Mary Rallis, CPA, Water Utility Administrator

CALL TO AUDIENCE - No speakers.

SPECIAL SESSION AGENDA

WELCOME NEW WATER UTILITY COMMISSION MEMBER TOM MAREK

Chair McMillan welcomed Tom Marek to the Water Utility Commission. Mr. Marek discussed his background.

REVIEW AND APPROVAL OF THE NOVEMBER 12, 2019 SPECIAL SESSION MEETING MINUTES


				Motion by Commissioner Charlie Hurt, seconded by Commissioner Winston Tustison to approve the minutes as written.

				Vote: 7 - 0 Carried

	3.			ELECTION OF WATER UTILITY COMMISSION CHAIR EFFECTIVE JANUARY 8, 2020


				Motion by Commissioner Charlie Hurt, seconded by Commissioner Rick Reynolds to elect Byron McMillan as chair of the Water Utility Commission.

				Vote: 7 - 0 Carried

	4.			ELECTION OF WATER UTILITY COMMISSION VICE CHAIR EFFECTIVE JANUARY 8, 2020


				Motion by Commissioner Charlie Hurt, seconded by Commissioner Winston Tustison to elect Rick Reynolds as vice chair of the Water Utility Commission.

		Vote: 7 - 0 Carried

5.		ELECTION OF WATER UTILITY COMMISSION SUBCOMMITTEES EFFECTIVE JANUARY 8, 2020

	A.	APPOINTMENTS TO FINANCE SUBCOMMITTEE (MAXIMUM OF 3 MEMBERS) Finance Subcommittee membership will include Chuck Hollingsworth, Winston Tustison and Robert Milkey. Commissioner Reynolds stated he will forgo holding a subcommittee position at this time.

	B.	APPOINTMENTS TO WATER RESOURCES AND CONSERVATION SUBCOMMITTEE (MAXIMUM OF 3 MEMBERS) Water Resources and Conservation Subcommittee membership will include Byron McMillan, Charlie Hurt, and Tom Marek.

6.		DISCUSSION AND POSSIBLE ACTION ON CHANGING THE WATER UTILITY COMMISSION MONTHLY MEETING TIME


				Motion by Commissioner Winston Tustison, seconded by Commissioner Charlie Hurt to change the Water Utility Commission meeting start time to 5:00 p.m.

				Vote: 7 - 0 Carried

	7.			DISCUSSION AND POSSIBLE ACTION ON 2020 WATER UTILITY COMMISSION WORK PLAN
				Mr. Abraham reviewed the draft 2020 Work Plan.


				Motion by Commissioner Rick Reynolds, seconded by Commissioner Charlie Hurt to approve the draft 2020 Work Plan as presented.

			Vote: 7 - 0 Carried

	8.		UPDATE AND DISCUSSION ON WATER RATES ANALYSIS
			Ms. Rallis presented the following: - Water rates analysis goals - Water rates analysis assumptions including those specific to the Water Utility - Reclaimed cost allocation analysis model - Implementation of reclaimed cost allocation method - Reduction in reclaimed commodity rate and reclaimed GPF recommended - Maintain conservative level of cash reserves - 2019 Impact Fee Analysis proposes to combine the two impact fees into one fee -Finance Subcommittee consensus to increase potable water monthly base rates, decrease reclaimed commodity rate and decrease reclaimed groundwater preservation fees - Schedule Discussion ensued among the Commission and staff.

	9.		TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER PIÑA) - Councilmember Piña was unable to attend.

	10.		SUBCOMMITTEE/COMMISSIONER REPORTS

		A.	FINANCE SUBCOMMITTEE - Chair Tustison said there is no report.

		B.	WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - Interim Chair McMillan explained at the last meeting, the group discussed development of a welcome kit for new customers and efforts to learn how customers use their water more precisely such as outside verses inside usage. Staff will update the Subcommittee when more information is available.

	11.		STAFF REPORTS

		A.	FINANCIAL REPORT
			- Ms. Rallis reviewed the budget to actual revenues and expenditures as of December 31, 2019 - Mr. Abraham explained the capital project budget to actual comparison - Ms. Rallis presented the customer service update at December 31, 2019

	12.		DIRECTOR'S REPORT
			Mr. Abraham presented the following: - Upcoming meetings - 2019 Colorado River Users Association conference - Drought Contingency planning next steps

CALL TO AUDIENCE - No speakers.

FUTURE AGENDA ITEMS - No items discussed.

ADJOURNMENT


				Motion by Commissioner Winston Tustison, seconded by Commissioner Charlie Hurt to adjourn the meeting at 6:55 p.m.

Vote: 7 - 0 Carried

I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 7th day of January, 2020. I further certify that the meeting was duly called and held and that a quorum was present.

Dated this 7th day of January, 2020.

___________________________
Danielle Tanner
Senior Office Specialist