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HomeMy WebLinkAboutMinutes - Water Utility Commission - 4/8/2013 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, April 8, 2013 HOPI CONFERENCE ROOM M 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 John Hoffmann, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner Richard Verlaque, 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 present. 1. APPROVAL MARCH 11, 2013 MINUTES MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Hoffmann to approve the March 11, 2013 minutes. MOTION carried, 7-0. 2. DISCUSSION AND POSSIBLE ACTION REGARDING CENTRAL ARIZONA PROJECT NON-INDIAN AGRICULTURAL WATER (P. Saletta) 4/8/2013 Water Utility Commission Minutes Mr. Saletta reported that June 14th was the application deadline for the 1st Round. If the Commission decides to move forward with the application process staff will present this item to Council in May. If the Commission recommends not applying for the 1st Round staff will write a report to Council. Mr. Saletta said that staff recommends not applying for the Central Arizona Project Non-Indian Agricultural Water but, it will be important to reevaluate in 2021. The Water Utility Commission did not see the need for the 1st Round application and agreed not moving forward. They felt there would be an additional opportunity for the 2nd round in year 2021. MOTION: A Motion was made by Commissioner Davis and Seconded by Vice Chair Tustison recommending that the Water Utility Commission accept Staffs recommendation to not move forward with an application for the 1st Round of the Central Arizona Project reallocation of Non-Indian Agricultural Water. MOTION carried, 7-0. 3. DISCUSSION AND POSSIBLE ACTION REGARDING A LOAN APPLICATION WITH THE WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA (Commissioner Tustison and S. Seng) Commissioner Tustison mentioned that the Finance Subcommittee met this morning to discuss WIFA loans versus bond interest loans. Ms. Seng mentioned that the Utility will need to finance the AMI project starting next fiscal year. We considered a loan through the Water Infrastructure Financing Authority but bonds are very comparable to WIFA's financing. Staff will develop an analysis on the different financing aspects and the term of the loans. This item was presented as information only. No action was required or taken on this item. This item will be presented to the Commission in June for further discussion. 4. DISCUSSION AND POSSIBLE ACTION REGARDING REFUNDING OF THE SERIES 2003 EXCISE TAX BONDS (Commissioner Tustison, P. Saletta and S. Seng) Commissioner Tustison reported that the Finance subcommittee met to discuss this item. Mr. Saletta gave a power point presentation. -Overview Series 2003 Excise Tax Revenue Bonds -Terms of Refunding 4/8/2013 Water Utility Commission Minutes 2 -Proposed Schedule: 4/8: Finance Subcommittee reviewed 4/8: Commission recommendation 5/15: Town Council 5/17: Bond closing (tentative) MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Davis to recommend that Town Council approve the refunding of the Series 2003 Excise Tax Revenue Bonds with a minimum saving of$225,000. MOTION carried, 7-0. 5. DISCUSSION AND UPDATE REGARDING GROUNDWATER EXTINGUISHMENT CREDITS P. Saletta) Mr. Saletta mentioned that the Water Utility was interested and planning to discuss with Tucson Water and other entities the purchases of Groundwater Extinguishment Credits. The Utility could spend approximately $400,000 for these credits. These GW Extinguishment credits can be used in lieu of Central Arizona Groundwater Replenishment District. Staff will continue to talk with other entities and will bring this back to the Commission when a draft agreement is available for review. This draft agreement will be forwarded to Town Council for their consideration and approval. No action was required or taken on this item. 6. DISCUSSION AND POSSIBLE ACTION REGARDING POSSIBLE RESCHEDULING OF THE JUNE 10, 2013 WATER UTILITY COMMISSION MEETING (Chair Milkey) Mr. Saletta will not be available for the June 10th WUC meeting. The Commission unanimously agreed to reschedule their meeting to Tuesday, June 18th. MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Davis to approve that the June Water Utility Commission meeting be held on June 18th. MOTION carried, 7-0. 7. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Councilmember Hornat mentioned that the Annual Report was exceptional and was well received by Council. Mr. Saletta thanked the Water Utility Commission for their support and staff for all their effort. 4/8/2013 Water Utility Commission Minutes 3 8. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Tustison had no report. b. Conservation Subcommittee (Commissioner Davis) Commissioner Davis had no report. c. Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Hoffmann had no report. 9. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported on Customer Service Report - March 2013 -FY 12-13 Total Metered Installation as of 3/31/13: 18,782 -FY 12-13 Actual New Meter Installations as of 3/31/13: 183 Current: 34 -FY 12-13 EDU's as of 3/31/13: 229 Current: 40 -FY 12-13 Meter Replacement as of 3/31/13: 280 Current month: 21 -FY 12-13 Water Audits as of 3/31/13: 86 Current month: 12 - AMI Project update: The antenna equipment will be installed by the end of the month. We expect to replace 2900 meters in 7 to 8 weeks. The customer web portal is also up and running. b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported on CIP Projects: -A notice to proceed has been issued for Tangerine Hills/Tangerine Meadows and High Mesa facility. Construction should begin by the end of the month. -CAP Phase II pipeline study is 95% complete -Blending CAP water booster is 75% complete Mr. Jacklitch mentioned that a 15 year CIP program was also developed in this year's Town Budget. c. Potable and Reclaimed Water System Report (D. Ruiz) Mr. Ruiz reported the following: 4/8/2013 Water Utility Commission Minutes 4 -Total Annual Water Production -2012/13 Monthly Water Production Report -Daily Demand and Precipitation - March 2013 -2012/2013 Monthly Reclaimed Water Deliveries -Reclaimed Water System - March 2013 10. DIRECTOR'S REPORT (P. Saletta) a. Colorado River Streamflow and Snow Reports Mr. Saletta gave a brief report on the following: -Stream flow reports for Arizona & Colorado March 2013 -Colorado River Water Supply Report - Total System Contents - March 2013. -Arkansas Colorado and Rio Grande Basin Snowpack - April 1, 2013 -Colorado, Utah, Wyoming and Western U.S. Snow Water Equivalent - 4/8/2013- b. Upcoming Meetings -4/10: Council Budget Study Session -4/17: Council meeting -5/01: Council meeting -5/13: WUC meeting -5/15: Council meeting Mr. Saletta reported that he would be in Washington D.0 week of 4/15, representing AVVWA and AZWA to discuss a proposed bill for federally funded low interest rate program regarding water and wastewater infrastructure. He will be meeting with Arizona delegation staff. FUTURE AGENDA ITEMS: May agenda items: -Update on Youth Education Program - K. Boyce -Update USGS - J. Hoffmann -Update WIFA Loan - S. Seng -Summary of Long term Capital Improvement plan NEXT NEETING: May 13, 2013 Location: Hopi Conference Room 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 4/8/2013 Water Utility Commission Minutes 5 Audience" please specify what you wish to discuss when completing the blue speaker card. There were no speakers present. ADJOURNMENT: 7:00 p.m. MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Reynolds to adjourn the meeting. MOTION carried, 7-0. Prepared by: CZA; C 4 CZ.4-e. Iris L. Chaparro 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 13 day of / �, -- , 2013. I further certify that the meeting was duly called and held and that a quorum '•s present. Dated this i'V day of T , 2013. 4/8/2013 Water Utility Commission Minutes 6 ACTION SUMMARY MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE MEETING APRIL 8, 2013 WATER UTILITY CONFERENCE ROOM 11000 N. LA CANADA DRIVE ORO VALLEY, AZ 85737 CALL TO ORDER at 10:05 a.m. PRESENT: Winston Tustison, Chair, Finance Subcommittee Betty Shapiro, Finance Subcommittee Member Robert Milkey, Commission Chair Shirley Seng, Water Utility Administrator Philip Saletta, Water Utility 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 a loan from the Water Infrastructure Finance Authority of Arizona (WIFA) a. Discussed the need to finance the meter replacement project. b. Discussed the need to evaluate the financial benefits of financing through WIFA or through a traditional bond issue as it relates to: i. Interest rates ii. Life of the loan c. Discussed the timing of when the Utility would need the funds and that staff would bring the issue back to the Commission for a final recommendation. 2. Discussion and possible action regarding refunding of the Series 2003 Excise Tax Bonds a. Discussion on the remaining balance owed on the Series 2003 Excise Tax Bonds that could be refunded at a lower rate. b. Discussed that the bond issues would not extend the term of the initial bonds— it would still be a 6 year payoff. c. Discussed the estimated costs to refund the bonds. d. Discussed the estimated interest rate. e. Discussed the estimated savings that would result from refunding the bonds. f. Discussed the schedule for accomplishing the refunding. g. Consensus to discuss with the full Commission to forward this item to the Council with a recommendation to approve the refunding. Adjourned at 10:45 a.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 8th day of April 2013. I further certify that the meeting was duly called and held and that a quorum was present. Prepared by: Shirle eng, Wat Utility A d 'inistrator