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Home My WebLink AboutMinutes - Water Utility Commission - 10/14/2013 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, October 14, 2013 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER -AT OR AFTER 6:00 P.M. ROLL CALL PRESENT: Robert Milkey, Chair Winston Tustison, Vice Chair Richard Davis, Commissioner Elizabeth Shapiro, Commissioner Richard Verlaque, Commissioner EXCUSED: John Hoffmann, Commissioner Richard Reynolds, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator 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 present. 1. APPROVAL SEPTEMBER 9, 2013 MINUTES MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Davis to approve the September 9, 2013 minutes. MOTION carried, 5-0. 2. DISCUSSION AND POSSIBLE ACTION REGARDING THE COST OF SERVICE STUDY AND WATER RATES ANALYSIS Vice Chair Tustison, S. Seng, & P. Saletta) Vice Chair Tustison reported that the Finance Subcommittee had met 3 times to discuss the Cost of Service Study and the Water Rates Analysis. We received additional information from the consultants which was very favorable and resulted in a lower rate increase. 10/14/2013 Water Utility Commission Minutes [1] Ms. Seng reported on the Rate Schedule for Service Fees and Charges: The engineering design review fees and the construction inspection fees are proposed to increase. These fees have not been increased in the last 3-4 years. The late payment fee will which is currently $5.00 is proposed to be $5.00 or 1% of the outstanding account balance whichever is greater. She also reviewed the Mayor & Council Water Policies Section Water Rates & Charges Cost of Service basis.-Section 2a.1 Potable rates, 2a.3 (b) Reclaimed rates. Ms. Seng mentioned that the results of the Cost of Service Study revealed that Single Family Residential and Irrigation customer classes were not generating revenue sufficient to meet their cost of service. Reviewed:-Table 2 Revenue Neutral Rate Restructuring schedule FY 2013/14 thru FY 2017/18. -Reviewed the Table for the Summary of All funds. Schedule: 10/10: Finance Subcommittee meeting 10/14: WUC review & recommendation 11/20: Town Council -Notice of intent to increase rates 1/15/2014: Public Hearing on proposed rate increase -2/15/14: Rates would become effective 3/15/14: Begin billing using the new rates MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Shapiro to recommend that Town Council proceed with the Notice of Intent to Increase Water Rates with the Revenue Neutral Rate Restructuring for FY 13-14 as detailed in the Preferred Financial Scenario. MOTION carried, 5-0. 3. DISCUSSION AND POSSIBLE ACTION REGARDING THE IMPACT FEE ANALYSIS (P. Saletta) Mr. Saletta gave an update on the Impact Fees and the factors that were causing a change and reduction in the impact fees. Mr. Saletta reported that the Water Utility was in excellent financial situation and that Legislation only limits a ten year time frame for impact fee calculations. The projects included in the 10 year time frame are less expensive than previously calculated for the entire water service build out. Mr. Saletta mentioned that the Impact Fees will be reduced for residential but commercial and Multi-Family irrigation will experience some increases. Mr. Saletta also gave an update on the Impact Fee Schedule & Approval Process. Chair Milkey mentioned it would be extremely valuable for the Commission to listen to the public's feedback on the website. No action was required or taken on this item. 4. DISCUSSION AND POSSIBLE ACTION REGARDING RESCHEDULING THE NOVEMBER WATER UTILITY COMMISSION MEETING DUE TO THE VETERANS DAY HOLIDAY (Chair Milkey) The Commission unanimously agreed to reschedule the November 11 meeting. 10/14/2013 Water Utility Commission Minutes [2] MOTION: A Motion was made by Commissioner Shapiro and Seconded by Vice Chair Tustison to approve rescheduling November 11 meeting to November 12th. MOTION carried, 5-0. 5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Councilmember Hornat reported on several items scheduled for the October 16th T.C. Meeting. -Approval for sale of recreational vehicles at the O.V. Market Place. -Farmers Market success and new location: Steam Pump Ranch -Utility Tax and 5 year financial forecast 6. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) There was no report. b. Conservation Subcommittee (Commissioner Davis) There was no report. c. Water Resources Subcommittee (Commissioner Hoffmann) There was no report. 7. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported on: -Billing insert: High Water Use Action Plan Customer Service Report-September 2013 -Total Metered Connection as of 9/30/2013: 18,843 -Actual New Meter Installations as of 9/30/2013: 31 Current: 9 -Projected EDU's for FY 13-14: 300 -Actual EDU's as of 9/30/13: 43 Current: 17 -Meter Replacements Program FY 12-13: 6,648 -Water Audits for FY 13-14: 40 Current: 20 b. Capital Projects (P. Saletta) Mr. Saletta reported on CIP Projects: -Additional 400 AFY CAP Wheeling to Oro Valley, Northern and Hardy Road area. -Additional 100 AFY of CAP Wheeling to Countryside Service area. These two projects will deliver additional 500 AF of CAP water. Design Projects -Production Facility: Install retention basin liner, header wall and pipe outlet revisions. -Design new security wall Well CS2 -FY 13-14 Capital Improvement-Valve replacement program, well flow meter replacement and system efficiency program for all booster pumps c. Potable and Reclaimed Water System Report (P. Saletta) Mr. Saletta reported on Potable and Reclaimed Water System September 2013: 10/14/2013 Water Utility Commission Minutes [3] -Annual Water Production -Monthly Water Production Report - 2012/13 -Daily Demand Operations Report and precipitation -Reclaimed Water Deliveries 8. DIRECTOR'S REPORT (P. Saletta) a. Colorado River Reports Mr. Saletta reported on: -Arizona & Colorado Streamflow- September 2013 -Inflow Historical into Lake Powell -Colorado River Water Supply for Lake Mead and Lake Powell b. Upcoming Meetings 10/16: Town Council meeting -Reclaimed IGA Extension 11/06: Town Council meeting 11/12: WUC meeting FUTURE AGENDA ITEMS: -USGS Update CALL TO AUDIENCE: There were no speakers present. NEXT MEETING: November 12, 2013 ADJOURNMENT MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Davis to adjourn the meeting. MOTION carried, 5-0. Prepared by: 4 (A/0 Iris L. Chaparro�Qi 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 f� day of(Veta.{w� , 2013. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 13 day of itifili4,01i4..A, , 2013. 10/14/2013 Water Utility Commission Minutes [4]