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Home My WebLink AboutMinutes - Water Utility Commission - 3/10/2008 ApplzwEigliqlog MINUTES FM ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION CYP 0') MARCH 10, 2008 # -'17:1 HOPI CONFERENCE ROOM 11,000 N.LA CANADA DRIVE FIELD TOUR: A 5:15 field tour was scheduled to the El Conquistador Pond Relining Site &La Canada Pipeline Construction. CALL TO ORDER-AT 6:45 P.M. ROLL CALL - 6:45 P.M. MEMBERS PRESENT: David Powell, Chair Winston Tustison,Vice Chair Rick Davis,Commissioner Robert Milkey,Commissioner John Hoffmann,Commissioner Elizabeth Shapiro,Commissioner STAFF PRESENT: Philip C.Saletta,Water Utility Director Shirley Seng,Utility Administrator David Ruiz,Engineering Division Administrator Robert Jacklitch,Project Manager Jim Peterson,Water Utility Regional Coordinator I'HE RS PRESENT: K.C. Carter, Council member Doug CALL TO AUDIENCE — Mr. McKee, Planning &Zoning Commission Chair commented on the initiation of the General Plan Amendment for ArroyoGrande. He stated that there is concern for adequate water supply for new development. He discussed the need forplanning and engineering studies and that public education was essential with . regards to water supply in the NW region. He encouraged the Commission to focus on a creditable report regarding water g pp Y g issues. He stated that the Planning &Zoning Commission deadline to approve a General Plan Amendment is the supply end of 2008. Chair Powell requested staff to have the water supply issue on next month's agenda. Chair Powell welcomed Commissioner Milkey to the Water Utility Commission. ITEM #1 APPROVAL OF FEBRUARY 11, 2008 MINUTES- Chair Powell entertained a motion to approve the February 11,2008 minutes. MOTION: Commissioner Davis MOVED to approve the February 11, 2008 minutes. Commissioner Shapiro SECONDED the motion.MOTION PASSED: Unanimously. ITEM #2 APPOINTMENT TO WATER CONSERVATION SUBCOMMITTEE - Chair Powell appointed Commissioner Milkey to the Water Conservation Subcommittee. Commissioner Milkey accepted the appointment. ITEM #3 - UPDATE AND STATUS ON THE WATER RATES ANALYSIS - Vice Chair Tustison reported that the Finance Subcommittee met March 4, 2008 and several issues and questions were discussed. Ms. Seng reported the following: • Table Review 3 funds:Enterprise,AWRDIF &PWSDIF,Potable Water System Master Plan will be reevaluated. • Reviewed:Summary of all 3 funds • Reviewed:Assumptions for Baseline Scenario • Reviewed: Potable water rate,Groundwater Preservation Fees and assumptions for Scenario A • Reviewed:Table of Meter Installation Monthly Data • Reviewed: Reclaimed Ground Water Preservation Fee,Water use trends • Reviewed: Potable Operation&Maintenance costs, CAP capital costs,Debt Service,Ending cash balances 3-10-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION • Reviewed: Graph- OVWU outstanding debt • Reviewed:Proposed rate schedule for Scenario(A) with proposed rate changes for each tier • Reviewed:Proposed tiers based upon meter size and AWWA capacity ratio • Reviewed:Table of Monthly Charges &Percent Increase Comparison • Discussed: Service fee increases for meter fees and credit card fees Ms. Seng explained that no formal WUC recommendation was expected,staff could be contacted via email or by phone to answer questions. An answer and question occurred: -Recommendation: Internet access Summary Table of Funds\Explanations (Commissioner Hoffmann). Mr. Saletta explained that the Operating Fund,Potable Impact&Alternative Impact Fee reports were available online and the table describing these funds would be put into the Rates Analysis Report. -Clarify Growth Rate at Study Session & Water Trends (Chair Powell). Ms. Seng explained that the water trend fluctuations were impacted by the Utility's declaration of two Drought stages the substantial amount of precipitation and changes to the tier rate. -Debt Service Ratio relative to Rate Setting (Chair Powell). Ms. Seng explained that the debt service ratio has been met in actuals every year. -Implications if Debt Service actuals are not met (Commissioner Miley). Ms. Seng explain. ed the Utility has a bond covenant if debt falls below 1.2 the Utility must fund debt service reserve bringing the ratio back to 1.3. -Future Water Rate Increases (Commissioner Milke)). Mr. Saletta gave a brief explanation on: Summary for Potable & Reclaimed Water System. He explained the total increases were coming from the GPF and they were not strictly from the 0&M side. He also indicated that the expected O&M increases to the Enterprise Fund were reasonable. -Public Education\Rate Increase\CAP water (Commissioner Hoffmann). Mr. Saletta emphasized that groundwater continues to be depleted and discussed CAP water delivery. He also agreed that public education was essential. -Future Finance Subcommittee Meeting: Topic: Service Fee Increases (meter fees,credit card fees) A brief discussion occurred regarding the past water rate increases, the need for new infrastructure, use of reclaim water, stabilization of water rates, and the Enterprise Fund revenue ending balances (balance must not fall below 5%). -Rate Analysis Schedule: Council Study Session 4/9/08 -WUC Recommendation 4/14/08, -Notice of Intent to Increase Rates 4/16/08 - Public Hearing and request for Council Approval 5/21/08 -Rates effective 6/21/08 (after Council approval) There were no further questions Ms. Seng ended her report. No action was taken or required on this item. ITEM#4 REQUEST APPROVAL OF ANNUAL REPORT- Mr. Saletta reported the following: Annual Report Draft - An electronic version of the Annual Report was presented to the Commission for comment and changes. Mr. Saletta pointed out that Commissioner Hoffman's changes wereincorporated. No additional changes were requested by the Commission. A brief discussion occurred about unaccounted water, production meters, flushing and leaks. There were no further questions Mr. Saletta ended his report. No action was taken or required on this item. Chair Powell entertained a motion for approval of the Annual Report 2008. MOTION: Vice Chair Tustison MOVED to approve and forward the Annual Report 2008 as corrected to Mayor & Town Council on April 2, 2008. Commissioner Hoffmann SECONDED the motion. MOTION PASSED: Unanimously. CEM#5 DISCUSSION REGARDING WATER INFRASTRUCTURE SUPPLY AND PLANNING STUDY- Ir. Saletta reported the following: • Provided copies of Tucson Mayor&Council Study Session packet to the WUC. • 2 3-10-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION • Reviewed Motion approving Scope of work for Water Infrastructure Supply&Planning Study proposed by COT and Pima County Staff. • Discussed that Tucson Water currently serves outside the City Limits within Pima County. • Discussed that Tucson Water has been requested to serve new areas outside the City. • City of Tucson suggests other jurisdictions conduct similar studies for their own utilities similar to Phase 1 and Phase 2 of the Scope of Work. An answer and question occurred: • Pima County ownership Sweetwater & Ina facility (Commissioner Shapiro). Mr. Saletta explained that Pima County treats and operates the waster water facility at Roger Rd. & Ina Rd. Tucson Water operates the Sweetwater Water Reclamation Plant near the Roger Road Wastewater Facility. • Town of Marana future plans may be to operate their own wastewater sanitation department in parts of Marana. Mr. Saletta ended his report.No action was taken or required on this item. TOWN COUNCIL MEETINGS/COMMUNICATIONS - Council member KC Carter reported on the Town Council's monthly activities: • Arroyo Grande Annexation • Request Commission prepare to answer water supply issues Council member KC Carter ended his report. No action was taken or required on this item. SUBCOMMITTEE REPORTS- Commissioner Davis reported the following: • Water Conservation subcommittee met week of 3/10/08 • Grant money possibilities available through ADWR and Pima County • City of Tucson Council requests study group to investigate Water Harvesting methods for commercial use commissioner Davis ended his report.No action was taken or required on this item. 'AFF REPORTS-Mr.Ruiz reported on Potable &Reclaimed Water Projects: • February 2008:Potable Peak Daily Demand Operations/Precipitation Report • February 2008:Potable Operations Report- Reservoir Levels • February 2008: Reclaimed Water System Report- Water Demand Mr.Ruiz ended his report. No action was taken or required on this item. Mr.Jacklitch reported on CP: • Pusch View Lane Bridge Construction-Project completion:June 2008 • Oracle Road Water Main Relocation- Contractor 70% complete Design projects: • La Canada Concrete Reservoir(3 mil. Gallon) In ground Reservoir- Design completion:June 2008 • Innovation Park Drive Main replacement-Design completion:June 2008 Mr.Jacklitch ended his report. No action was taken or required on this item. DIRECTORS REPORT -Mr. Saletta reported on: • Handouts: -Town Manager Memorandum: Ref: Alternative Water Resources Development Impact Fee Working Group has completed their work. -Colorado River Snow Report and the Arizona Snow Report were discussed. The snow pack on the Colorado River is well above average and is 140% in some basins. • Upcoming Meetings: -Northwest Managers - 3/13 -Town Council- 3/19-Town Council Study Session-4/9 (Topic:Water Rates Analysis) -Water Utility Commission- 4/14 - r.Saletta ended his report.No action was taken or required on this item. FUTURE AGENDA ITEMS • Approval March 10,2008 Minutes 3 3-10-08 MINUTES,ORO VALLEY WATER UTILITY COMMISSION • Approval Water Rates Scenario • Adequate Water Supply Issue- Update • Arroyo Grande Annexation- Update • USGS presentation water availability website (May08 Agenda).Requested by: Commissioner Hoffmann CALL TO AUDIENCE - There were no requests to speak. NEXT MEETING: April 14,2008 Location: Hopi Conference Room ADJOURNMENT:Chair Powell entertained a motion to adjourn the meeting: MOTION: Commissioner Hoffmann MOVED to adjourn the meeting. Commissioner Davis SECONDED the Motion.MOTION PASSED: Unanimously. ADJOURNMENT: 8:45 P.M. Prepared by, Iris L.Chaparro Senior Office Specialist 4