HomeMy WebLinkAboutMinutes - Water Utility Commission - 8/11/2008 k i
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MINUTES
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ORO VALLEY WATER UTILITY COMMISSION ITEM
REGULAR SESSION
AUGUST 11, 2008
HOPI CONFERENCE ROOM #
11,000 N. LA CANADA DRIVE
CALL TO ORDER —AT OR AFTER 6:30 P.M.
ROLL CALL
MEMBERS PRESENT: David Powell, Chair
John Hoffmann, Commissioner
Robert Milkey, Commissioner
Suzanne L. Novelli, Commissioner
MEMBERS ABSENT: Winston Tustison, Vice Chair
Rick Davis, 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
OTHERS: B. Gillaspie, Council Liaison
K.C. Carter, Council Member
D. McKee, Chair Planning & Zoning Commission
L. Leonhart, O.V. Resident
INTRODUCTION: Chair Powell welcomed recently appointed Commissioner Sue Novelli to the
meeting.
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.
CALL TO AUDIENCE — Resident Leo Leonhart gave a brief report on the 2009 Ground Water
Summit to be held April 19 through April 23, 2009 — Location: Hilton Tucson El Conquistador
Golf & Tennis Resort. Mr. Leonhart distributed the Ground Water information and ended his
report.
No action taken.
1. APPROVAL OF JUNE 9, 2008 MINUTES — Chair Powell entertained a motion to approve
the June 9, 2008 minutes. MOTION: Commissioner Hoffmann MOVED to approve the June 9,
2008 minutes. Commissioner Milkey SECONDED the motion. MOTION PASSED:
Unanimously.
8-11.-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
2. WATER RATES ANALYSIS — (PPT Presentation) Mr. Saletta gave a brief update regarding
the following:
• Overview: Upcoming Study Session -8/13/08 @ 5:30 -Preliminary Financial Scenarios
-Water Conservation Credit/Charge (new concept) -Customer Analysis
• Water Rates Analysis Report -Schedule
• Background: April 16 Council continued a Notice of Intent to increase water rates
-June 11 Council Study Session -Council Concerns and Direction
- Ranges within tiers were too large, possibly consider more tiers, Low water users not being
rewarded
• Notice of Intent to increase water rates -Report available to the public, sets a Public
Hearing date.
• Council Communication handout — 8/13/08
Ms. Seng continued with the Water Rates power point presentation on the following:
• Preliminary Financial Scenarios: 12 additional financial scenarios- Five year revenue &
expense projections, Phase-in Groundwater Preservation Fee, Base rates, Commodity
rates, Conservation Credits /Charges
• Reviewed: Water Rate Design Options for the Preferred & Alternate scenarios as well as for
scenarios J through P1 — Base Rate Increase/Decrease, Commodity Rate Increase, and
Conservation Credits.
• Water Conservation Credit / Charge: -Concept is to provide a conservation credit to
customers using 2000 gallons or less per month -A conservation charge would be added
for those using over 18,000 gallons per month -This would only apply to single family
residential customers that are individually metered -Conservation credits / charges would
be calculated and billed automatically
• Customer Analysis: -64% of all customers use 10,000 gallons or less per month
-31% of all customers use 5,000 gallons or less per month -9.8% of all customers use
2,000 gallons or less per month -Average customer uses 9,000 gallon per month
-Significant increases with more tiers (Scenario J & P1) -Impact to large water users (La
Cholla Air Park, Northwest Hospital, Ventana Medical, S.C. Community Association,
Schools (athletic fields)
• Reviewed: Scenarios J & P1 (various meter sizes.) Proposed base rates and Proposed
commodity rates
• Water Rates Analysis Report: - All new scenarios will be included as an Addendum to the
existing Water Rates Analysis Report -Provides notice for the proposed water rate increase
-Report becomes available when Council adopts the Notice of Intent
• Review of Schedule: -8/11 W.U. Commission Review -Council Study Session -8/13
Council Study Session -8/25 WUC Finance Subcommittee (Tentative) -9/8 Water Utility
Commission Review -9/17 Notice of Intent -10/13 Publish legal notification of rate increase
-10/17 Mail Public Hearing notice to customers -11/05 Public Hearing to consider rate
increase -12/06 If adopted, new rates become effective
Discussion & Answer Session
-Water use of single & winter customers with 5/8x3/4" using 2000 gallons or less per month
(Chair Powell)
-Financial scenarios & debt service coverage (Chair Powell)
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8-11-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
-Financial scenarios & total revenue stream return (Commissioner Milkey)
-Rate scenario changes affecting water use behavior & impact to future revenue
(Commissioner Hoffmann)
Mr. Saletta explained the Utility's 5-year period water rates analysis process and debt service
coverage ratio.
-User averaging 9000 gallons will experience close to a 9% increase. (Chair Powell)
-Must be cognizant of customers with good conservation practices. They should not be
penalized the next year with rate increases. Not necessarily, a good long term policy and could
create a political backlash. If conservation rates are in place, we must be careful not to increase
rates, because the Utility has lost revenue. We must concentrate on customers who are using
water unwisely and have inadequate irrigation systems. (Commissioner Milkey)
-Billing & programming costs for a conservation line item.
-Water rates & impact of Scenario P1 to larger water users (Commissioner Novelli)
-La Cholla Air Park sub meters & water usage (Chair Powell)
-Phase-in water conservation usage for larger water users. Consider conservation credits if a
conservation plan is in place (Commissioner Milkey)
Chair Powell agreed with Commissioner Milkey that Scenario P1 with some education behind it
could drive conservation behavior, in addition, staff should investigate what other similar size
utilities, other states are doing, and what their averages are.
No action taken or required on this item. There were no further questions Ms. Seng ended her
report.
3. WATER DEVELOPMENT IMPACT FEES Mr. Saletta reported the following:
-7/16 Council Communication: Public Hearing regarding increasing the Alternative Water
Resources Development Impact (AWRDIF).
-Concept: increase the AWRDIF and eliminate the 5 increment phase-in
-9/03 AWRDIF Council request for approval will be scheduled with other Town impact fees
-Handouts
-Draft Ordinance: (0) 08-12 Changes to Water Code 15-17-4. AWRDIF Impact fee table
attachment
-Power Point Presentation from Public Hearing on 7/16/08
No action taken or required on this item. There were no further questions Mr. Saletta ended his
report.
4. DISCUSSION AND UPDATE ON WATER UTILITY PROJECTS
Discussion and update on various Potable and Reclaimed Water Utility projects, repairs and
system improvements. Mr. Jacklitch reported the following:
• Video presentation - Maintenance repair of Pusch View Reservoir (Water Plant 16)
• Capital Improvement Projects Report
-Pusch View Well C-9 (30% construction Completion: 11/08)
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8-11-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
• Design Projects: -King Air 3.0MG - Concrete reservoir\pipeline (Pipeline design 90%
complete.) Reservoir construction schedule: FY09 budget -Innovation Park Drive -
2000 linear feet pipeline replacement. Bid documents under review
• Replacement Well E-1 B: (Location: Tangelo & First Ave.) This well could increase
capacity 500-700 gpm -Water main extension Lambert Lane & La Canada\La
Cholla (In cooperation with Public Works Dept. road widening project, the Water Utility
plans to extend the water main system from La Cholla onto Lambert Lane.
No action taken or required on this item. There were no further questions Mr. Jacklitch ended
his report.
Mr. Ruiz gave a power point presentation on the following:
• Phase 2 Reclaimed Water System Project: Painted Sky Elementary School (99%
complete), Hilton Golf Course Pond Relining: South Pond (Potable water still being
used), North Pond (Reclaim water delivered July 2008), La Canada Drive Pipeline
Extension (Completed: August 1, 2008).
No action taken or required on this item. There were no further questions Mr. Ruiz ended his
report.
5. DISCUSSION REGARDING AZ WARN - Mr. Saletta gave a brief update on the following:
• Handouts: -Arizona Water/Wastewater Response Network (AZWARN)
Membership/Participation
• AZWARN Membership Concept: To provide mutual aid emergency assistance with
various water and wastewater organizations (e.g. personnel, equipment, pumps &
pipes).
• AZWARN Membership list: City of Phoenix, Metro Water District, City of Tempe, City of
Peoria, City of Flagstaff, Pima County, City of Scottsdale, City of Avondale, City of
Tucson, Camp Verde Sanitary District, Town of Prescott Valley, Town of Marana
• Town of Oro Valley financial obligations: Standard rates applied for services rendered
only.
• --AZWARN Membership: Includes only Water and Wastewater entities
This item will come back to the Commission with an agreement requesting approval to forward
this item to Council.
No action taken or required on this item. There were no further questions Mr. Saletta ended his
report.
TOWN COUNCIL MEETINGS/COMMUNICATIONS - Council Liaison Gillaspie reported:
• Sonoran Desert Conservation Plan: Town Council adopted this item August 6, 2008.
Requirement: The Town should evaluate water delivery for new development in addition
to areas with sensitive environmental needs. The Water Utility staff should schedule
some time with Council to discuss the importance of this issue.
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8-11-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
No action taken or required on this item.
SUBCOMMITEE/COMMISSIONER REPORTS
a. Water Conservation Subcommittee - Commissioner Milkey reported that the subcommittee
had not met but has been participating in a series of meetings regarding the landscape
ordinance. Currently a draft landscape ordinance is being prepared by a consultant.
No action taken or required on this item.
STAFF REPORTS
Ms Seng reported:
• Handout - Meter Installations. Updates will be given on a quarterly basis.
b. Potable and Reclaimed Water System Report - Mr. Ruiz reported:
• Handout:
• July 2008: Potable Peak Daily Demand Operations/Precipitation Report
• July 2008: Potable Operations Report — Reservoir Levels
• July 2008: Reclaimed Water System Report— Water Demand
No action taken or required on these items.
DIRECTOR'S REPORT - (P. Saletta)
a. Upcoming Meetings
• Reappointment of WUC Members - Congratulations to B. Shapiro, D. Powell,
R. Milkey. Handouts: Commission Term Expiration & Contact list
• 8/13 —Pima/COT Water Supply & Infrastructure Study 7:00 a.m.
• 8/13- Council Study Session on Water Rates — 5:30 — 2nd item on agenda
• 8/25- WUC Finance Subcommittee meeting (tentative)
• 9/2- WUC Water Conservation Subcommittee meeting (tentative)
• 9/3- Council: Impact Fees
• 9/8- WUC Meeting
• 9/11- State of the Town — OVWU table reserved — Commissioners are invited.
• Granicus Auto Streaming —WUC commencement of new audio streaming system
could occur October or November.
• Handout- Water Infrastructure, Supply & Planning Study
No action taken or required on this item.
FUTURE AGENDA ITEMS
• Approval August 11, 2008 minutes
• Arizona Water and Wastewater Agency Response Network
No action taken or required on this item.
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.
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• 841=08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
CALL TO AUDIENCE — No other speakers.
NEXT MEETING: September 8, 2008 Location: Hopi Conference Room
ADJOURNMENT: Chair Powell entertained a motion to adjourn the meeting.
MOTION: Commissioner Hoffmann MOVED to adjourn the meeting. Commissioner Novelli
SECONDED the motion. MOTION PASSED: Unanimously
ADJOURNMENT : 8:20 P.M.
Prepared by:
P ; 64,640
Iris L.Chaparro
Senior Office Specialist.
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