HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 9/26/2013 ACTION SUMMARY MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE MEETING
SEPTEMBER 26, 2013
WATER UTILITY CONFERENCE ROOM
11000 N. LA CANADA DRIVE
ORO VALLEY, AZ 85737
CALL TO ORDER at 1:57 p.m.
PRESENT: Winston Tustison, Chair, Finance Subcommittee
Elizabeth Shapiro, Member, Finance Subcommittee
Robert Milkey, Chair, Water Utility Commission
Shirley Seng, Water Utility Administrator
Philip Saletta, Water Utility Director
Jeff Kane, Meter Operations Supervisor
Stacey Lemos, Finance Director
Call to the audience
No public attendance at the meeting.
Discussion of the following items occurred and no action was taken:
1. Discussion and possible action regarding the cost of service study and water rates
a. Discussion regarding delaying adoption of the Notice of Intent to Increase water rates
i. Need to focus on completing impact fee analysis
1) Very restrictive time frame to get completed
ii. Staff will evaluate another financial scenario
iii. Staff will evaluate key factors driving the proposed rate increases
iv. Postponement will give Commission more time to review the proposed rates
and the rate report before making a final recommendation on water rates
b. Scheduled the next Finance Subcommittee Meeting for October 10, 2013
2. Discussion and possible action regarding the impact fee analysis
a. Discussed the proposed Alternative Water Resources Development Impact Fees
i. Costs included in the analysis
1) Future CAP water infrastructure projects
2) CAP water reallocation of 3,557 AF
ii. Demand Adjustment Factor used in this analysis
1) Was not used in past analysis
iii. Residential & Multi-family impact fees will be reduced
iv. Commercial & Irrigation impact fees will be increased
v. Hand out the schedule of proposed impact fees
b. Discussed the proposed Potable Water System Development Impact Fees
i. Costs included in the analysis
1) Equity buy-in of past expansion projects based on extra capacity
2) Future system expansion projects to meet the demands of new growth
ii. All impact fees will be reduced
iii. Hand out the schedule of proposed impact fees
c. Discussed reasons for reductions in both fees based on new legislation
i. Used Water Utility service area vs. Town's General Planning Area
ii. Used 10-year planning vs. Town build-out date
d. Reviewed the approval process and schedule
i. Two public hearings prior to Council adoption
ii. Estimating Town Council adoption on April 2, 2014
iii. New impact fees would become effective on June 1, 2014
Adjourned at 2:40 p.m.
I hereby certify that I prepared the foregoing minutes and that they are a true and correct copy of the
minutes of the Finance Subcommittee meeting held on the 26th day of September 2013. I further
certify that the meeting was duly called and held and that a quorum was present.
I + _
Prepared by:
Shirley Seng, Water till Admini ato
Water Rates
Schedule
09-26-13 Finance Subcommittee Meeting
10-10-13 Finance Subcommittee Meeting
10-14-13 Water Utility Commission Review
11 -12-13 WUC Recommendation
11 -20-13 Town Council — Notice of Intent
01 - 15- 14 Public Hearing to adopt new rates
02-15- 14 Rates are effective
03- 17- 14 Begin billing at new rates
Town of Oro Valley
TABLE 4-4
Potable Water System Development Impact Fee
ORO VALLEY WATER UTILITY
POTABLE WATER SYSTEM DEVELOPMENT IMPACT FEES
Existing Proposed
Demand DemMeter Existing Proposed
Customer Class
Adjustment Adjustmentand CapacityAWWA Ratio PWSDIF PWSDIF
Factor Factor
single anvilResidential
5/8-inch 1.0 ,
1.0 1.0 $ 2,567 $ 2,015
3/4-inch 1.0 1.0 1.5 $ 3,850 $ 3,022<.
1-inch 1.0 1.0 2.5 $ 6,420 $ 5,037
1.5-inch 1.0 1.0 5.0 $ 12,840 $ 10,074
2-inch 1.0 1.0 8.0 $ 20,540 $ 16,118
1 tial
(peunit)
\ 1? ,
Per Unit 0.48 0.48 NA $ 1,230 $ 967
CommCommercialand Industria
( per eters
5/8-inch 1.6 1.3 1.0 $ 4,110 $ 2,619
3/4-inch 1.6 1.3 1.5 $ 6,160 .$ ..............3,929..
1-inch 1.6 1.3 2.5 $ 10,270 $ 6,548
1.5-inch 1.6 1.3 5.0 $ , $ 13,096
2-inch 1.6 1.3 8.0 $ 2032,860540 $ 20,953
3-inch 1.6 1.3 16 $ 65,720 $ 41,906
4-inch 1.6 1.3 25 $ 102,690 $ 65,478
6-inch 1.6 1.3 50 $ 205,380 $ 130,956
8-inch 1.6 1.3 80 $ 328,610 $ 209,530
T 4
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(per meter)
5/8-inch 1.7 1.8 1.0 $ 4,360 $._ ... y.w.3,626
3/4-inch 1.7 1.8 1.5 $ 6,550 $ 5,440
1-inch 1.7 1.8 2.5 $ 10,910 $ 9,066
1.5-inch 1.7 1.8 5.0 $ , $ , 32
2-inch 1.7 1.8 8.0 $ 3421,920820 $..... 2918,0112
3-inch 1.7 1.8 16 $ 69,830 $ 58,024
4-inch 1.7 1.8 25 $ 109,110 $ 90,662
-7,
6-inch 1.7 1.8 50 $ 218, $ ,324
8-inch 1.7 1.8 80 $ 349,150220 ; $ 290181,118
WATER UTLITY DEVELOPMENT IMPCAT FEES STUDY 4-4
TABLE 4-3
Alternative Water System Development Impact Fee
ORO VALLEY WATER UTILITY
ALTERNATIVE WATER RESOURCES DEVELOPMENT IMPACT FEES
Existing Proposed
Demand Demand AWWA Meter Existing Proposed
Customer Class
Adjustment Adjustment
Capacity Ratio AWRDIF AWRDIF
Factor Factor
.f s
_ ::, ' ,
aper }
5/8-inch 1.0 1.0 1.0 $ 4,982 ` $ 4,045
3/4-inch 1.0 1.0 1.5 $ 7,470 $ 6,067
1-inch 1.0 1.0 2.5 $ 12,450 $ 10,111
1.5-inch 1.0 1.0 5.0 $ 24,910 $ 20,223
2-inch 1.0 1.0 8.0 $ 39,850 $ 32,356
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Per Unit 0.48 0.48 NA $ 2,390 $ 1,941
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5/8-inch 1.0 1.3 1.0 $ 4,982 $ 5,258
3/4-inch 1.0 1.3 1.5 $ 7,470 $ 7,887
1-inch 1.0 1.3 2.5 $ 12,450 ; $ 13,145
1.5-inch 1.0 1.3 5.0 $ 24,910 $ 26,289
2-inch 1.0 1.3 8.0 $ 39,850 $ 42,063
3-inch 1.0 1.3 16 $ 79,710 $ 84,126
4-inch 1.0 1.3 25 $ 124,550 $ 131,447
6-inch 1.0 1.3 50 $ 249,100 . $ 262,894
8-inch 1.0 1.3 80 $ 398,560 $ 420,631
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5/8-inch 1.0 1.8 1.0 $ 4,982 $ 7,280
3/4-inch 1.0 1.8 1.5 $ 7,470 $y K 10,920
1-inch 1.0 1.8 2.5 $ 12,450 $ 18,200
1.5-inch 1.0 1.8 5.0 $ 24,910 $ 36,401
2-inch 1.0 1.8 8.0 $ 39,850 $ 58,241
3-inch 1.0 1.8 16 $ 79,710 $ 116,482
4-inch 1.0 1.8 25 $ 124,550 $ 182,004
6-inch 1.0 1.8 50 $ 249,100 $ 364,007
8-inch 1.0 1.8 80 $ 398,560 $ 582,412
WATER UTLITY DEVELOPMENT IMPCAT FEES STUDY 4-3
TABLE 4-5
Comparison of Existing and Proposed AWRDIF and PWSDIF
ORO VALLEY WATER UTILITY
EXISTING AND PROPOSED DEVELOPMENT IMPACT FEES
Existing Proposed Percent Existing Proposed Percent Existing Fees Proposed Fees Percent .
Customer Class AWRDIF AWRDIF Variance PWSDIF PWSDIF
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6,059 -20%
3/4-inch $ 7,470 $ 6,067 -19% $ 3,850 $ 3,022 : -22% $ 11,320 $ 9,089 ; -20%
1-inch $ 12,450 $ 10,111 -19% $ 6,420 $ 5,037 -22% $ 18,870 $ 15,148 -20%
1.5-inch $ 24,910 $ 20,223 -19% $ 12,840 $ 10,074 -22% $ 37,750 $ 30,296 -20%
2-inch $ 39,850 $ 32,356 -19% $ 20,540 $ 16,118 -22% $ 60,390 $ 48,474; 20%
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5/8-inch $ 4,982 $ 5,258 6% $ 4,110 $ 2,619 -36% $ 9,092 $ 7,877 -13%
3/4-inch $ 7,470 $ 7,887 6% $ 6,160 $ 3,929 -36% $ 13,630 $ 11,816 -13%
1-inch $ 12,450; $ 13,145 6% $ 10,270 $ 6,548 -36% $ 22,720 $ 19,693 -13%
1.5-inch $ 24,910' $ 26,289 6% $ 20,540 $ 13,096 -36% $ 45,450 $ 39,385 1 -13%
2-inch $ 39,850 $ 42,063 6% $ 32,860 $ 20,953 -36% $ 72,710 $ 63,016, -13%
3-inch $ 79,710 $ 84,126 6% $ 65,720 $ 41,906 -36% $ 145,430 $ 126,032 : -13%
4-inch $ 124,550 $ 131,447• 6% $ 102,690 $ 65,478• -36% $ 227,240 $ 196,925 -13%
6-inch $ 249,100 $ 262,894 6% $ 205,380 $ 130,956 E -36% $ 454,480 $ 393,850 -13%
8-inch $ 398,560 $ 420,631 6% $ 328,610 $ 209,530 -36% $ 727,170 $ 630,16113%...
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5/8-inch $ 4,982 $ 7,280 46% $ 4,360 $ 3,626 -17% $ 9,342 $ 10,907 17%
3/4-inch $ 7,470 $ 10,920 46% $ 6,550 $ 5,440 -17% $ 14,020 $ 16,360 17%
1-inch $ 12,450 $ 18,200 46% $ 10,910 $ 9,066 -17% $ 23,360 $ 27,267 17%..
1.5-inch $ 24,910• $ 36,401 46% $ 21,820 $ 18,132 -17% $ 46,730 $ 54,533 17%
2-inch $ 39,850 $ 58,241 46% $ 34,920 $ 29,012 -17% $ 74,770 $ 87,253 17%
3-inch $ 79,710 $ 116,482 • 46% $ 69,830 $ 58,024 E -17% $ 149,540 $ 174,506 17%
4-inch $ 124,550 $ 182,004 46% $ 109,110 $ 90,662
-17% $ 233,660 $ 272,666 17%
6-inch $ 249,100 $ 364,007 46% $ 218,220 $ 181,324 -17% $ 467,320 $ 545,331 17%
8-inch $ 398,560 $ 582,412 46% $ 349,150 $ 290,118 -17% $ 747,710 $ 872,530 17%
WATER UTLITY DEVELOPMENT IMPCAT FEES STUDY 4-5
Impact Fees
Approval Process - Schedule
September 26, 2013 WUC Finance SC Meeting
October 4 , 2013 Draft studies published
October 14, 2013 WUC Update
December 4, 2013 Council Public Hearing
December 9, 2013 WUC Update/Recommendation
January 15, 2014 Council consider approval of Land Use
Assumptions and Infrastructure
Improvements Plan
February 19, 2014 Council Public Hearing
March 10, 2014 WUC recommendation
April 2, 2014 Council consider adoption of fees
June 1 , 2014 Effective date
Town of Oro Valley