HomeMy WebLinkAboutMinutes - Water Utility Commission - 9/8/2014 MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, September 8, 2014
HOPI CONFERENCE ROOM
11000 N. LA CANADA DRIVE
CALL TO ORDER - AT OR AFTER 6:00 P.M.
ROLL CALL -
PRESENT: Robert Milkey, Chair
Richard Davis, Vice Chair
Javier Arriaga, Commissioner
Richard Reynolds, Commissioner (attended by phone)
Elizabeth Shapiro, Commissioner
EXCUSED: Anne Campbell, Commissioner
Richard Verlaque, Commissioner
STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Utility Administrator
Robert Jacklitch, Project Manager
CALL TO AUDIENCE:
There were no speakers.
1. APPROVAL JUNE 9, 2014 MINUTES
MOTION: A Motion was made by Commissioner Arriaga and Seconded by
Commissioner Shapiro to approve the June 9, 2014 minutes.
MOTION carried, 5-0.
2. DISCUSS WATER RATES ANALYSIS (Chair Milkey/S. Seng)
Chair Milkey reported that the Finance Subcommittee met August 19th to discuss the
Water Rates Analysis. The report is in its preliminary stages and no action is required
on this item.
Ms. Seng gave a power point presentation and reviewed the Water Rates Analysis
report key assumptions: Growth, Inflation, Personnel, Operations and Maintenance,
Capital Projects, No change in rate design. She mentioned that the Groundwater
Preservation Fee (GPF) would be accounted for in the Water Utility's Operating Fund
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not the AWRDIF Fund. The GPF will also be accounted for separately in the Water
Rates Analysis Report and will have its own revenue, expenditures and cash balance.
Ms. Seng reviewed the Water Rates Analysis schedule.
Chair Milkey mentioned that the Commission members were welcomed to attend the
February 23rd Finance Subcommittee. Chair Milkey mentioned that one of the
difficulties was trying to figure out how to balance the need for cash reserves and
meeting the net operating revenue requirement of 1.3 times the debt service.
3. DISCUSS GROUNDWATER PRESRVATION FEE (Chair Milkey/P. Saletta)
Chair Milkey opened and indicated that the Groundwater Preservation Fee was
discussed at the last Finance Subcommittee meeting. Mr. Saletta reported on several
long term possibilities for the Groundwater Preservation Fee. He reported that the GPF
will continue to pay for the renewable water and related debt. The utility will be looking
at GPF revenues to possibly help fund capital infrastructure replacement or help pay for
Tucson Water's annual CAP water wheeling payments. These options will be discussed
at a future Finance Subcommittee Meeting.
Mr. Saletta reported that the capital components of Tucson Water wheeling charges and
the CAWCD CAP water allocations are paid from the GPF. Mr. Saletta also reviewed
the Groundwater Preservation Fee policy.
4. DISCUSS CASH RESERVE POLICY (Chair Milkey/P. Saletta)
Chair Milkey opened this item indicating that the Finance Subcommittee discussed the
Cash Reserve Policy at their last meeting. He reported on the Water Utility's 1.3 debt
operating income and cash reserves. Mr. Saletta stated that as cash reserve fund builds
up it could be used for capital projects rather than incurring further debt. He reviewed
the Cash Reserve Policy. It will be important for the Water Utility and the Commission
to take a closer look at the cash reserve balance requirements under the existing policy.
This policy can be reviewed after the water rate analysis and will be discussed at a
future Finance Subcommittee meeting.
5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat)
There was no report.
6. SUBCOMMITTEE/COMMISSIONER REPORTS
a. Finance Subcommittee (Commissioner Milkey)
There was no report.
b. Conservation Subcommittee (Commissioner Davis)
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Commissioner Davis reported there was no meeting. Ms. Boyce is moving forward with
public education and has contacted Ms. M. Nowak and L. Gallardo to update
information on the website.
c. Water Resources Subcommittee (Commissioner Reynolds)
Commissioner Reynolds mentioned that a meeting is planned 10/08/2014 to discuss the
Arizona Water Power Authority application process.
Mr. Jacklitch reported on the Water Resource Subcommittee's schedule.
Mr. Jacklitch mentioned that in 2017 Hoover Dam will have excess power available to
those parties interested in purchasing the power at a lower rate. The APA is currently
working on the draft application.
7. STAFF REPORTS
a. Customer Service Report (S. Seng)
Ms. Seng reported the following:
Total Metered Connections as of 8/31/14: FY 14-15: 19,062
Actual New Meter Installations as of 8/31/14: FY 14-15: 36 Month:13
Actual EDU's for FY 14-15: 345
Actual EDU's as of 8/31/14: 95 Month: 13
Meter Replacements as of 8/31/14: FY 14-15: 1,235 Month: 535
Water Audits as of 8/31/2014: FY 14-15: 24 Month: 13
b. Capital Projects (B. Jacklitch)
Mr. Jacklitch reported the following:
-Delivery of 100 a/f CAP water to Countryside service area began in March
-Delivery of 400 a/f CAP water to Northern and Hardy areas began in August
-Naranja booster station blending of E-zone water with CAP water.
-Security wall for Countryside Well CS2
-R.V Reclaim Facility rebuilt existing retention basin and installed a new chlorine
delivery system
-Naranja Park reclaimed water main is complete
Design Projects
-Install 12-inch water main in Countryside area
-Tangerine Road widening project
-Lambert Lane intersection of La Canada water main relocation
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c. Potable and Reclaimed Water System Report (D. Ruiz)
-Annual Water Production Report - August 2014
-Monthly Production Report 2013-14
-Precipitation & Storage Daily Demand - August 2014
-Reclaimed Water Deliveries - August 2014
-2013-14 WUC Reclaimed Water System
8. DIRECTOR'S REPORT (P. Saletta)
a. State of the Town
9/12: State of the Town -Location: Hilton Resort
b. Colorado River Streamflow and Snow Reports
Arizona Streamflow - August 2014
Colorado Streamflow - August 2014
Total System Content - August 2014 Lake Powell & Lake Mead
c. Upcoming Meetings
Meetings: Finance, Conservation and Renewable Water Subcommittees
October: Advertise for two Water Utility Commission vacancies. Countryside and Town
At-Large Resident
FUTURE AGENDA ITEMS
Water resources and long term conservation measures (Commissioner Arriaga)
-Water supply, CAP, reclaimed water in relation to the drought.
Mr. Saletta mentioned that the conservation measures could be addressed in January,
and the Drought Preparedness Plan and water resources topics will be addressed at the
next Water Resources Subcommittee meeting.
CALL TO AUDIENCE:
There were no speakers.
NEXT MEETING: OCTOBER 13, 2014 LOCATION: HOPI CONFERENCE ROOM
ADJOURNMENT
MOTION: A Motion was made by Vice Chair Davis and Seconded by
Commissioner Shapiro to adjourn the meeting.
MOTION carried, 5-0.
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Prepared by:
�,�y da .“,c)
Iris L. Chaparrd
Senior Office Specialist
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
$1r14 day of �,,,, .,,� , 2014. I further certify that the meeting was duly called and held
and that a quor 'm was present.
Dated this 1()% day of a&44/A_ , 2014.
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