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HomeMy WebLinkAboutMinutes - Water Utility Commission - 10/13/2014 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, October 13, 2014 HOPI CONFERENCE ROOM N 11000 N. LA CANADA DRIVE CALL TO ORDER - AT OR AFTER 6:05 P.M. ROLL CALL PRESENT: Robert Milkey, Chair Richard Davis, Vice Chair Anne Campbell, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner Richard Verlaque, Commissioner EXCUSED: Javier Arriaga, 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 SEPTEMBER 8, 2014 MINUTES MOTION: A motion was made by Commissioner Shapiro and seconded by Vice Chair Davis to approve the September 8, 2014 minutes. MOTION carried, 6-0. 2. DISCUSSION AND POSSIBLE ACTION REGARDING THE WATER RATES ANALYSIS (Chair Milkey and S. Seng) Chair Milkey reported that the Water Rates Analysis report had not been finalized. The final action and recommendation to Council would be ready in the next few weeks. 10/13/2014 Water Utility Commission Minutes 1 The Finance Subcommittee met twice. At the last meeting a potential rate structure was agreed upon. The biggest concern was the Groundwater Preservation Fee (GPF) and how it would be applied under a new policy. Ms. Seng gave a power point presentation and reviewed the Water Rates Analysis key assumptions; current policies on cash reserves and GPF; baseline financial scenario and the draft preferred financial scenario. The proposed rates include a decrease in the GPF and increases in the commodity rates. The base rates will not change. There will be no significant increase to the customers under this scenario. Ms. Seng mentioned that the Groundwater Preservation Fee revenue will be accounted for in the Utility's Operating Fund which was one of the major changes resulting from a change in the impact fee statute. The GPF will be accounted for separately in the water rates analysis because the current policy dedicated the GPF revenue for renewable water resources and infrastructure and related debt. No action was required on this item. A copy of the preferred financial scenario was included in the Commission's packet. Consensus: The Commission supported moving forward with the proposed Preferred Financial Scenario. Chair Milkey mentioned the Commission will look forward to a final draft Water Rates Analysis Report prior to the next meeting. 3. UPDATE ON "YOUR VOICE/OUR FUTURE" ENVIRONMENT COMMITTEE (Chair Milkey, Vice Chair Davis and P. Saletta) Chair Milkey mentioned that Vice Chair Davis was the Commission's Environment Committee representative. Commissioner Milkey serves as the public at large member. Three established committees- Environment, Community and Development. He reported about the Fall 2014 Schedule of Classes. The General Plan will move forward for Public vote November 2016. Chair Milkey mentioned there was concern about water resources among the other committee members. Vice Chair Davis was very impressed with staff's excellent job and focus. Mr. Saletta discussed the Environment Committee's relationship to the other committees and "Your Voice Our Future Guiding Principles". The committee's main focus is the new General Plan election as well as public outreach. Mr. Saletta reviewed the upcoming schedule: 10/22: Water Resources 11/04: Cultural Resources 11/17: Clean Environment 12/04: Community and Development 12:16: General Plan Final Recommendation All meetings are opened to the public. Location: Hopi Conference Room 4. UPDATE ON COLORADO RIVER (P. Saletta) 10/13/2014 Water Utility Commission Minutes 2 Mr. Saletta gave a power point update on the Colorado River. He mentioned that the Central Arizona Water Conservation District (CAWCD) had been observing the changes in the Colorado River. Recently Arizona Water Resources has done their own analysis and is looking at this issue from a water delivery and regulatory perspective. Mr. Saletta gave a breakdown of the Seven Basin States: Lower Basin - California, Arizona, Nevada Upper Basin - Colorado, Utah, New Mexico, and Wyoming. Mr. Saletta reported on the following: -Arizona Streamflow -Sept. 2014 -Colorado Streamflow -Sept 2014 -Utah Streamflow - Sept 2014 -Colorado River Supply Report - Lake Mead, Lake Powell-Colorado River Water Supply Report (Lake Mead & Lake Powell). -Colorado River Water Supply Report Challenging Times Ahead: Lake Mead 6' water elevation above shortage sharing elevation (1,075'). Central Arizona staff and ADWR are very concerned about these shortages. He reported that Arizona/Nevada and Mexico share shortages to the Lower Colorado River. Arizona has the largest portion of the shortage at 320,000 AF. Shortages within the CAP Project were discussed for the 2016 Level 1 Shortage. There has been planning for the future both state wide and basin wide. Oro Valley Water Utility is planning by storing our unused CAP water now and over the next several years. Mr. Saletta indicated that the State of California was not included in shortage sharing because they had senior and higher priority rights over the CAP Project. However, sharing in the future reservoir evaporation should be discussed with California. 5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Council member Hornat reported on: -Council oversight "Your Voice our Future" citizen driven -General Plan Amendments: -Manning Property withdrawn -Location: Shannon & Naranja, La Cholla Naranja to Lambert -Neighborhood Community interest: Water, schools, development and traffic 6. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Milkey) Chair Milkey indicated there were no further reports. b. Conservation Subcommittee (Commissioner Davis) Commissioner Davis expressed concerns about Ms. Boyce spending time on the use of AquaHawk and its management. He mentioned that the subcommittee is working on getting more conservation ideas through other municipalities and agencies such as Arizona Department of Water Resources. Ms. Seng explained that spending time on AquaHawk would not affect water audits or the Youth Conservation Program. Staff needs to continue to develop the program to provide early leak notification to our customers before taking on Social Media. Ms. Seng mentioned that about 10% of residents are using AquaHawk. The utility has been proactive by getting more information out to the public and by modifying the leak adjustment policy. 10/13/2014 Water Utility Commission Minutes 3 c. Water Resources Subcommittee (Commissioner Reynolds) Commissioner Reynolds reported the next meeting will be scheduled October 21st Time: 4:00 p.m. 7. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported the following: -Total Metered Connections as of 9/30/2014: FY 14-15: 19,077 -Projected Meter Installations for FY 14-15: 211 -Actual New Meter Installations as of 9/30/2014: FY 14-15: 51 Month: 15 -Actual EDU's as of 9/30/2014: FY 14-15: 128 Month: 33 -Meter Replacements FY 14-15 as of 9/30/2014: 1,248 Current: 13 -Water Audits as of 9/30/14: FY 14-15: 37 Month: 13 b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported the following: Design Projects -Countryside 12 inch main replacement. Design is 95% complete -Tangerine Road both potable and reclaim mains will be relocated due to RTA road improvements -Lambert Lane road improvement Capital Projects -Energy efficiency booster station upgrade. Project will include replacing pumps and motors. -CAP Naranja Blending booster station. Includes the installation of pipe crossing before the Town's road improvement project starts February 2015. Booster station installation expected next fiscal year. c. Potable and Reclaimed Water System Report (D. Ruiz) Mr. Ruiz reported on: -Annual Water Production Report - September 2014 -Monthly Production Report 2013-14 -Precipitation & Storage Daily Demand - September 2014 -Reclaimed Water Monthly Deliveries - September 2014 -2013-14 WUC Reclaimed Water System 8. DIRECTOR'S REPORT (P. Saletta) Mr. Saletta reported on the current Water Utility Commission vacancies. Commissioner Elizabeth Shapiro - Term Expires Chair, Robert Milkey - Term Expires Commissioner Rick Verlaque will not request reappointment. Staff contacted the Countryside Manager about the Countryside vacancy. A press release will be sent by the Clerk's Office. All applications will be accepted until November 7th. Vice Chair, Davis, Council member Hornat and the Water Director will be part of the selection panel. Town Council will consider approval of the appointments at their December 3rd meeting. 10/13/2014 Water Utility Commission Minutes 4 a. Upcoming Meetings 10/15: Town Council Meeting 10/21: Water Resources Subcommittee Meeting 10/22: "Your Voice Our Future" Environmental Committee Meeting 10/30: If required Finance Subcommittee Meeting 11/05: Town Council Meeting 11/10: Water Utility Commission Meeting FUTURE AGENDA ITEMS Update - Drought Preparedness Response Plan (Chair Milkey) CALL TO AUDIENCE: There were no speakers. NEXT MEETING: NOVEMBER 10, 2014 LOCATION: HOPI CONFERENCE ROOM ADJOURNMENT: MOTION: A motion was made by Commissioner Shapiro and seconded by Vice Chair Davis to adjourn the meeting. MOTION carried, 6-0. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Water Utility Commission of Oro Valley, Arizona held on the 13+11 day of be_v , 2014. I further certify that the meeting was duly called and held and that a quorum was present. Dated this I a day of Oc.rolgiu , 2014. Prepared by: Iris L. Chaparro Senior Office Specialist 10/13/2014 Water Utility Commission Minutes 5