HomeMy WebLinkAboutMinutes - Water Utility Commission - 5/14/2007 MINUTES i1olo
ORO VALLEY WATER UTILITY COM
REGULAR SESSION a -----~ ---~-~--
MAY 14,2007 # .
HOPI CONFERENCE ROOM
11,000 N. LA CANADA DRIVE
CALL TO ORDER—AT OR AFTER 6:00 P.M.
ROLL CALL—6:00 P.M.
MEMBERS PRESENT: Dave Powell,Chair
Winston Tustison,Vice Chair
George Calabro,Commissioner
Brent Egbert,Commissioner
John Hoffman,Commissioner
Elizabeth Shapiro,Commissioner
MEMBERS ABSENT: Winston Tustison,Vice Chair
Harold Vaubel,Commissioner
STAFF PRESENT: Philip C.Saletta,Water Utility Director
Shirley Seng,Utility Administrator
David Ruiz,Engineering Division Administrator
ITEM #1 APPROVAL OF APRIL 9, 2007 MINUTES — Chair Powell entertained a motion for approval of the April 9,
)7 minutes.
MOTION: Commissioner Egbert MOVED to approve the April 9, 2007 minutes. Commissioner Hoffman
SECONDED the motion.MOTION PASSED:Unanimously.
ITEM#2—WATER CONSERVATION AND DROUGHT—Mr.McCaleb reported on the Drought Plan:
Data Assessment and Report for Stage 2 Drought-Findings
-Temperature:Temperatures have not equaled or exceeded 98 degrees during any period. Time period for Stage 1 =
40 days Time period for Stage 2= 50 days
-Average Precipitation:3.9 inches from October to date should be 5.2 inches to date.
-Oro Valley Precipitation Graph period 10/1/06 to 5/7/07.Mr.McCaleb gave a brief breakdown of how the data
was collected via sensors.
-Drought Monitor Level: D-2 Severe. Stage 2 criteria was met. Data Indicator obtained from NOAA (National
Oceanic and Atmospheric Administration).
-Annual Average Decline of Groundwater Levels: Annually 2.7 ft. -Accumulative since 1999 dropped 5.6 ft.
-Voluntary Drought Restrictions:Water customers are being asked to take voluntary steps to conserve water.
-Refrain from outdoor watering between 7 a.m.and 7 p.m.
-Parks&Recreation: Fire Department Public Demonstrations of water
-Current Status: Customer Service has received 58 phone calls. Conservation Area received 24 phone calls.
Several incoming calls were regarding water conservation techniques,scheduling audits and general questions.
Questions and answers occurred:
Commissioner Ebert asked about the drought condition changes.Mr.McCaleb indicated that precipitation was
monitored monthly,temperature levels are studied tri-monthly,drought monitor checked weekly,well level declines
and well sounding were performed annually
Chair Powell asked about customer notification and watering during restricted hours.Mr.McCaleb mentioned that
customer notification has taken place through the media and staff would try to discourage residents from watering
outside during the daytime hours.
5-14-07 ' MINUTES,ORO VALLEY WATER UTILITY COMMISSION
Commissioner Hoffman asked about the Stage 2 Drought Declaration. Mr. McCaleb indicated that the drought
notification was done in compliance with a legislative mandate filed with the State in January 2007,and that the Stage
2 Drought implementation was supported and approved by Town Council.
Mr. Saletta indicated that the Media and press have contacted the Water Utility regarding the Drought. He thought that the
coverage was very good and raised public awareness about the drought.
An answer and question occurred:
Chair Powell asked whether audits had increased as the result of the media coverage on the drought. In answer to Chair
Powell's question Mr.McCaleb indicated that there were no significant audit increases.
Commissioner Calabro mentioned that he was limiting and reducing the amount of watering
during the evening hours at the golf course. However, during the day they have to water the areas that needed some
supplemental watering.
Mr.McCaleb gave a brief summary about his attendance to the Planning&Zoning Commission meeting May 1,2007 and the
possibility of a town wide water conservation policy.The Commission proposed to create a committee to assist in drafting a
town-wide conservation ordinance. The Development Review Board sent a request to Town Council and Planning and
Zoning Commission for changes that resulted in more water conservation efforts.
In answer to Chair Powell question Mr. Saletta felt it would be appropriate for the WaterUtility Commission to support and
work with the Planning & Zoning Commission and Development Review Board with the drafting of the town wide
conservation ordinance.
Mr. McCaleb believed that once the P&Z Commission and DRB Committee established the committee they would begin to
send out communications to virtually every committee that needed to be involved.
..ere were no further questions Mr.McCaleb ended his report
ITEM#3-WATER RATES INCREASE—Commissioner Shapiro gave a brief report on the preferred scenarios.
• Changes to Water Rates Tier System: Includes additional 4th tier,Benefits debt coverage, changes to tier-1 through 3,
these tiers encourage conservation.
• Proposed Alternative Scenario:Maintain 3 tier with no increases
Commissioner Shapiro indicated that the Finance Subcommittee preferred the 4 tier rate scenario and ended her report
Ms Seng reported that in March the Commission provided direction to staff to move forward with the 4-Tier water rate
structure. Since January the Finance Subcommittee has evaluated over 10 different financial scenarios before arriving at the
preferred recommended scenario. On April 23td the Finance subcommittee recommended that Scenario E-R1 be the
Preferred Financial Scenario as well as Scenario G-R1 as the Alternate Financial Scenario. Ms. Seng stated that both the
Preferred Financial Scenario E-R1 and the G-R1 Alternate Financial Scenario would meet debt service coverage.
Ms.Seng gave a comprehensive update on the following.
-Water Utility Commission Communication Reference Recommendation on Water Rates
-Difference and Comparison between the Preferred Financial Scenario E-R2 versus the Alternate Financial Scenario G-R1
-Results of single family residential customer with 5/8"meter for both scenarios
-Draft Water Rates Analysis Report-Comments from Commissioner Hoffman about the report will be incorporated
-Review of Appendices A-E
-Water Use Data Sheet 12/01/05—12/01/06
- [s. Seng indicated that Staff would be looking for recommendations from the Commission on the Water Rates, Preferred
financial Scenario and the Alternate Financial Scenario.A suggested motion has been provided for the Commission.
An answer and question occurred.
2
5-14-07' MINUTES,ORO VALLEY WATER UTILITY COMMISSION
-Preferred Financial Scenario E-R2 Establish tier 4 at$5.00 per 1000 gallons. Commissioner Egbert questioned the results for
gle family residential customer with 5/8"meter.Ms.Seng explained reduction and usage within the tier.
There were no further questions. Chair Powell entertained a motion for approval of the Water Rate Increase.
MOTION: Commissioner Shapiro moved to recommend the 4-Tier water rate structure identified in Scenario E-
R2 become the Commission's rate recommendation and that Scenario E-R2 become the Commission's Preferred
Financial Scenario. I further move that we recommend that Scenario G-R1 become the Commission's Alternate
Financial Scenario. Commissioner Calabro SECONDED the motion.MOTION PASSED UNANIMOUSLY.
Ms. Seng mentioned that a Notice of Intent would be presented to Town Council June 6th. If adopted it would establish a
Public Hearing date for July 18th.A Study Session on May 21st will take place for both Water Rates and Development Impact
Fees.Mr.Saletta encouraged the Commission to attend.
ITEM#4 ANNUAL REPORT UPDATE—Ms.Seng reported the following:
• Water Utility Commission Communication-Included in the Commission's packet
• Provided Draft Annual Report — Significant changes to the Conservation section were made. Commissioner
Hoffman comments will be incorporated into the Final Annual Report. Commissioner Hoffman suggested removing
the word contaminant from the report but Commissioner Egbert felt the term was used within the EPA and should
not be removed. Mr. Saletta pointed out that the Water Quality Reports clearly lists the maximum contaminant water
levels (MCL)in accordance with Environmental Protection Agency criteria.
• Reviewed Appendices—Appendix A—Water Testing Results Appendix B—Static Water Levels Appendix C
—Series of Maps Appendix D—5 Year Capital Improvement Plan
Appendix E—Reclaimed Water System Map Appendix F—Chart OVWU Statistics
"S. Seng indicated that staff would be looking for the Commission's approval of the 2007 Annual Report and
:ommendations to forward it to Town Council.
There were no further questions. Chair Powell entertained a motion for approval of the 2007 Annual Report. The
Commission complimented staff on the 2007 Annual Report.
MOTION: Commissioner Shapiro moved to approve and forward the Water Utility Commission 2007 Annual
Report as modified to the Town Council. Commissioner Egbert SECONDED the motion. MOTION PASSED
UNANIMOUSLY.
ITEM #5 WATER DEVELOPMENT IMPACT FEES — Mr. Saletta reported Oro Valley's responses to SAHBA
request on the Development Impact Fees.
• Handout—Town of Oro Valley Response to SAHBA Options May 10,2007
• Creation of a Community Facilities Districts — Concept of a subdivision or various lots to create their own CFD
district. The CFD would borrow money for water meters and pay for the meters when purchased from the Water
Utility.
• Community participating in CFD—Various communities participate in CFD methods such as Buckeye,Arizona.This
is not a standard practice particularly when there is a structure in place for water development fees.Arizona Revised
Statutes allows for impact fees when a site has a building permit or meters are being purchased.Mr. Saletta indicated
that staff did not believe that the Community Facilities Districts was an appropriate method however, SAHBA felt it
could work. Staff does not recommend this approach to Town Council, and Staff also believes the Town is not
experiencing significant subdivision developments to warrant this type of approach.
• The Utility has provided SAI-IBA with a proposed schedule for bond sales and cash flow analysis these were included
in the Impact Fee reports.
[r.Saletta continued to review the responses provided to SAHBA.
-Oro Valley Water partnering agreement with Tucson Water on the Reclaimed Water Project
-CAP Project Discussion:Partnership with the four water providers and possibly Tucson Water
3
5714-07 ' MINUTES,ORO VALLEY WATER UTILITY COMMISSION
-Assessing a$10 Service Charge for new housing and$5 per month for existing residential customer
-Differences between Development Impact Fees and GPF(Renewal Resources)
-Concern for subsidies and golf courses use of effluent water & reclaimed water. Golf courses currently using
groundwater are paying the full GPF however, once off groundwater the golf courses will get a reduced GPF.
Commissioner, Calabro explained that there was a substantial amount of changes and expenses that the El
Conquistador golf course would have to experience before accepting reclaimed water, such as redoing both pump
stations,as well as treatment changes to valve boxes and signage.
-AWRD Impact Fee& GPF Clarification: AWRD and the GPF are revenues intended to fund the AWRD Fund and
be balanced between existing customers and new growth. GPF (Ground water Preservation Fee) Existing customers
pay this fee,it is not an impact fee but a water rate.
-AIF phase-in concept
An answer and question occurred.
-Billing&Monitoring of the CFD (Chair Powell)—Mr. Saletta said that the CFO would make assessments independently and
obtain bonding to pay off the Water Utility. Downside of CH): Some districts have experienced bankruptcy. CFl) will only
pay when a home is being developed. Significant administration is required.
-SAHBA Support of CFI) (Commissioner Egbert) —Mr. Saletta felt that SAHBA supported the CFD method because they
didn't want to raise the price of their lots.and/or homes for sale.
-CFD Administration&Salaries (Commissioner Shapiro)—Mr.Saletta indicated that the CFD would have to handle their own
administrative expenses and charge the homeowners for the fees.
Mr.Saletta said that staff would be responding to SAHBA's comments and concerns and ended his report.
SUBCOMMITEE REPORTS
-Finance Subcommittee—Commissioner Shapiro had no report.
STAFF REPORTS
pita!Projects—Mr.Ruiz reported for Mr.Jacklitch.
-�usch Ridge Reservoir: The 500,000 concrete reservoir 95% complete. The reservoir would be filled by the end of month
with a pump test and startup to follow. After the facility meets all the conditions of construction and a development
agreement is signed the developer will deed the property easements and water facility to the Town.
-Oro Valley Drive 8-Inch Main Extension: The water infrastructure is complete. The new main, private plumbing and fire
hydrants are installed and operating.Pressure and microbiological tests have passed.
-Water Plant 15: 500,000 gallon above ground steel reservoir. This project is approximately 15% complete. The reservoir site
is graded,infrastructure building to begin shortly.
-Well C-9 Pusch View Lane: Two bids were submitted May 4 however bids were 40% higher than the approved budget and
engineer's estimate. To obtain access to the site a small bridge over the drainage area will have to be built making the bid
higher.Staff is recommending to Mayor and Council to reject all bids. Staff will re-evaluate the scope of work and separate the
projects and re-bid the work. This project will not be complete until January 2008.
Potable Water System Status—Mr.Ruiz reported the following.
-Peak Daily Demand April 2007: Demand increased. Precipitation: Two events of rainfall caused the peak daily
demand to decrease.
-Peak Daily Demand Reservoir Storage April 2007: The potable water system is doing well. Peak Daily Demand =
6,000,000 mgd
Reclaimed Water System Status
-Phase I—All three golf courses have experienced reclaimed water increases.April 2007 increase= 47,757,000 million
gallons.
-Phase II—Roadway construction: Staff continues to coordinate with Public Works in order to begin Phase II of the
Reclaimed System. Design Plans:Plans are expected to be submitted week ending 5/18/07. This project will be out
for advertising and bid June 2007. Construction Schedule:September 2007 Completion Date:August 2008
-El Conquistador Golf Pond Relining. Advertising and Bid schedule: Sept 2007 Construction Date: November 2007
Completion Date: February 2008
Mr.Ruiz ended his report.
4
5-14-07 MINUTES,ORO VALLEY WATER UTILITY COMMISSION
Ms.Seng reported the following:
-Customer Service Report:April 2007 Water Meter Count= 17,769 '
-Billing software changes: The Utility is currently working with the Town's IT department and National Bank to
establish software changes allowing lockbox payments be down loaded automatically. These changes will ultimately
save Customer Service valuable time. Over 17,000 monthly customer payments entered manually.
-Customer Monthly Contacts: 41,000 monthly count
TOWN COUNCIL MEETINGS/COMMUNICATIONS—(Council Member K.C. Carter)
Council member Carter gave a brief explanation about the upcoming golf course study which will be included at the next
Town Council meeting.
DIRECTOR'S REPORTS—Philip Saletta
-Upcoming Meetings:T.C. Study Session—May 21 Time: 5:30 June 6-Public Hearing for Impact Fee and Notice of
Intent June 20- (T.C.Consideration Adoption on the Impact Fees)
July 18- (T.C. Consideration Adoption of Water Rates and Public Hearing)
-WIFA Loan: On June 6,2007 the loan authorization will be presented to the Finance Director for final approval.
-N.W.Providers: Carollo Engineers alternative and cost study draft will be presented to staff and will be reviewed for
financing consideration. Completion date:August/September 2007.
-Water Utility Commission Vacancies:Vice Chair Tustison term expires June 2007.Mr.Tustison has'also submitted a
letter for reappointment. Vice Chair Tustison reappointment request will be submitted to Town Council June 20,
2007.
-Commissioner Vaubel verbally submitted his resignation because of other business responsibilities and his need to
travel.Staff will be looking for his replacement sometime in July.
Mr.Saletta ended his report.
FUTURE AGENDA ITEMS
1.Approval May 14,2007 Minutes •
_EXT MEETING:June 11,2007 Location: Hopi Conference Room
Chair Powell entertained a motion to adjourn the meeting.
MOTION: Commissioner Shapiro MOVED to adjourn the meeting. Commissioner Egbert SECONDED the
motion. MOTION PASSED: Unanimously
ADJOURNMENT: 8:15 P.M.
Prepared by,
Iris L.Chaparro
• Office Specialist
5
