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HomeMy WebLinkAboutMinutes - Water Utility Commission - 9/8/2008 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION SEPTEMBER 8,2008 HOPI CONFERENCE ROOM 11,000 N. LA CANADA DRIVE CALL TO ORDER—AT 6:00 P.M. ROLL CALL MEMBERS PRESENT: David Powell, Chair Winston Tustison, Vice Chair Rick Davis, Commissioner John Hoffmann, Commissioner Robert Milkey, Commissioner Sue Novelli, Commissioner Elizabeth Shapiro, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator David Ruiz, Engineering Division Administrator Jim Peterson, Water Utility Regional Coordinator OTHERS: B. Gillaspie, Council Liaison K.C. Carter, Council member D. McKee, Chair Planning & Zoning Commission CALL TO AUDIENCE — Mr. McKee distributed a handout regarding water capacity for Arroyo Grande. He pointed out several areas of interest: Arroyo Grande population capacity and deficit percentage, Water delivery &pumping requirements, (5,500 AF Pumping Rate.) Chair Powell moved Town Council Meetings item to accommodate Councilmember Gillaspie schedule. TOWN COUNCIL MEETINGS/COMMUNICATIONS — Council Liaison Gillaspie reported on Council's monthly activities. • Handout: Council Liaison Assignments Councilmember Gillaspie ended his report. No action taken. ITEM #1 ELECTION OF WATER UTILITY COMMISSION OFFICERS — Mr. Saletta requested nominations for Chair and Vice Chair for the Water Utility Commission. Officers terms: Through June 30, 2009. MOTION: Commissioner Milkey MOVED to nominate Dave Powell to continue as Chair and Winston Tustison to continue as Vice Chair of the Commission. Commissioner Shapiro SECONDED the motion. MOTION PASSED: Unanimously Mr. Saletta ceased nominations. 9/08/08 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION ITEM #2 APPROVAL OF AUGUST 11, 2008 MINUTES - Chair Powell entertained a motion to approve the August 11, 2008 minutes. MOTION: Commissioner Shapiro MOVED to approve the August 11, 2008 minutes. Commissioner Novelli SECONDED the motion. MOTION PASSED: Unanimously ITEM #3 WATER RATES ANALYSIS - Discussion and/or possible action regarding a proposed Notice of Intent to increase rates, proposed financial scenarios, water rates design, water rates increases, water conservation pricing and charges, tiered rate structure, proposed schedule, other related water rate matters, and the Addendum to Water Rates Analysis Report. Mr. Saletta reported the following: • Packet attachment: Council Communication & Resolution. Staff will review financial scenarios. • Water Rates Analysis Report—Completed 9/10/08 for Council packets. • If the Notice of Intent is approved on 9/17/08, a Public Hearing will be set and the original report with the addendum will be available to the public. The Commission will receive a copy of the addendum along with the original report if needed. • Schedule: 10/8/08 Council Study Session(Rates) 11/5/08 Public Hearing and request for adoption of resolution. • Conservation: Under Council's direction, staff reviewed the possibility of rewarding customers that were conserving; Staff added extra tiers and changed the ranges of the tiers. The impact to residential and commercial customers has been analyzed. Some of the results indicate that commercial water users could experience significant impact in their average water use because they are at the upper tiers. • Staff will request a motion recommending approval of the NOI for the Commission. Ms. Seng reported on the following: • Reviewed Power Point Presentation: Summary of Financial Scenarios Preferred Alternate -Scenarios: (R R1 — R2, S- Sl-S2, K- K1- K2, L Ll - L2, M- Ml-M2, N- N1-N2, P-P1- P2.) • Review Proposed Schedule: -10/8 Council Study Session -10/13 Water Utility Commission -11/5 Public Hearing — Request Approval of Resolution to Increase Water Rates -12/6 New water rates in effect • Each scenario meets debt service coverage requirements, most scenarios result in substantial financial implication to customers therefore the Utility must be cognizant of these facts. Discussion and Answer Session: -T.C. request: Analyze additional financial scenarios addressing possibility of increasing number of tiers within rate structure, implementation of stronger conservation pricing and rewarding lower water users. -Staff recommendation: Cost of Service Study be performed prior to adoption(S. Seng) -Delineation of Tiers (Chair Powell) -La Cholla Air Park water usage (Commissioners Davis & Hoffmann) -Charges: Customer activation fee/turn on fee (Chair Powell) -Rate increases impact to commercial entities (e.g. hospitals) (Commissioner Novelli) -Explanation: Various rate scenarios, Notice of Intent initiating the process for setting rates. (P. Saletta) 2 9/08/08 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION Chair Powell entertained a motion to approve the NOI to establish and increase water rates, fees and charges for the Oro Valley Water Utility and to establish a Public Hearing. MOTION: Vice Chair Tustison MOVED to approve Resolution No. (R) 08- of the Mayor and Council of the Town of Oro Valley, Arizona Providing Notice of Intent to establish and increase Water Rates, Fees and Charges for the Oro Valley Water Utility and establishing a Public Hearing date for November 5, 2008. Commissioner Shapiro SECONDED the motion. MOTION PASSED: Unanimously. ITEM #4 AZ WARN MUTUAL AID AGREEMENT - Discussion and/or possible action regarding Arizona Water and Wastewater Agency Response Network Mutual Aid Agreement. Mr. Ruiz gave a brief explanation about AZ WARN Agreement: • Provide voluntary emergency assistance to participating members by providing personnel, equipment and/or resources and materials. • Agreement establishes terms, conditions for assistance, and establishes contacts and protocols. • Program is consistent with the nation Incident Management System (NIMS) protocol established by the Federal National Response Plan for emergency responses. Mr. Ruiz provided the Commission with Staffs recommendation and suggested motion. Chair Powell entertained a motion to approve the Mutual Aid Agreement with AZWARN. MOTION: Vice Chair Tustison MOVED to recommend to Town Council to approve Resolution No. (R) 08- , a resolution of the Mayor and Council of the Town of Oro Valley, approving Arizona a rovin the AZWARN Mutual Aid Agreement. Commissioner Davis SECONDED the motion. MOTION PASSED unanimously. ITEM #5 - NORTHWEST WATER PROVIDERS IGA - Discussion and/or possible action regarding a proposed Intergovernmental Agreement between the NW Water Providers for studies related to the development of our Central Arizona Project Water. Discussion may also include other NW Water Provider activities. Mr. Saletta briefed the Commissioners on the N.W. Water Providers IGA: • N.W. Providers IGA: Sets provisions for the N.W. Providers to continue in-depth studies for the delivery of CAP water. • The IGA authorizes the N.W. Providers to implement and participate in cost sharing for each study. However, the IGA does not include design, construction or operations. These specifics will be included in a separate IGA. • Potential Northwest CAP Water Delivery System Map—A brief explanation and description was given outlining various pipeline delivery points for OVWU, Marana and Flowing Wells. • Staff Recommendation- Staff recommends that the WUC move to support the IGA. Discussion and Answer Session: -Metro Water as acting Agent (Commissioner Milkey) -Underlying Overhead charges (Commissioner Hoffmann) Mr. Saletta ended his report. 3 9/08/08 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION Chair Powell entertained a motion to approve the Northwest Water Providers IGA. MOTION: Commissioner Hoffmann MOVED to approve No. (R) 08- , A Resolution of the Town Council of the Town of Oro Valley, Arizona Approving an Intergovernmental Agreement Between the Metropolitan Domestic Water Improvement District, Flowing Wells Irrigation District, the Town of Marana and the Town of Oro Valley (NW Water Providers) for the Northwest Water Providers Central Arizona Project Water System Route Study and Future Studies. Commissioner Davis SECONDED the motion. MOTION PASSED unanimously. ITEM #6 UPDATE ON CENTRAL ARIZONA PROJECT ACTIVITIES — Discussion regarding the current and project future rate increases, recent proposed legislation for Central Arizona Groundwater Replenishment District Bonding Authority and a possible tour of CAP Facilities. Mr. Saletta reported the following: • Handout - Central Arizona Project Rate Schedule. • Review - Projected increases for CAP M&I, Projected increases for CAGRD, Costs for recharge • Review — Tucson Active Management Area (TAMA) Assessment Rates & Infrastructure & Water Rights Component • Review — Letter dated 9/3/08 to CAWCD (Proposed CAGRD Membership Fee). CAGRD points of interest: Proposing legislation to authorize bonding required to separate debt for CAGRD from CAWCD. • Staff supports concept for bonding but several fees associated with the legislation such as Membership Fees should not be charged to those participants already using CAGRD. Oro Valley is an active member of CAGRD. • Proposed Legislation Fee — Fees will be 1/3 of all revenues collected for the legislature and water resources component. Commissioner Hoffmann asked whether letters had been sent by other members. • CAP Water Tour — Staff will organize another CAP water tour in November or January. WUC Attendees: Robert Milkey, Sue Novelli, R. Davis, B. Shapiro also Town Council member K.C. Carter. Mr. Saletta ended his report. No action taken. Town Council Meetings moved to the top in order to accommodate Councilmember Gillaspie schedule. SUBCOMMITTEE/COMMISSIONER REPORTS — Commissioner Davis reported on the Water Conservation Subcommittee. -Meeting schedule: Held September 9, 2008 -Topic Town of Oro Valley Weather Station: The location for the weather station was not determined but could be installed in an open space. Staff is working closely with an engineer to workout all details. Commissioner Davis ended his report. No action taken. 4 9/08/08 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION STAFF REPORTS • Customer Service Report—Ms. Seng reported on the following: -Handout: Review new meter installations as of 9/8/08. New Meters Total = 36 Ms. Seng ended her report. • Capital Improvement Projects—Mr. Ruiz reported for Mr. Jacklitch. -Pusch View Well C-9 (Construction Project) -Well D-7 Electrical Upgrades (Construction Project) -La Canada Reservoir (Design Project) -Innovation Park Drive (Design Project) -Replacement Well E-1 (Design Project) • Potable & Reclaimed Water Projects—Mr. Ruiz reported on the following: -August 2008: Potable Peak Daily Demand Operations/Precipitation Report -August 2008: Potable Operations Report - Reservoir Levels -August 2008: Reclaimed Water System Report—Water Demand Mr. Ruiz ended his report. No action taken. DIRECTOR'S REPORT—Mr. Saletta reported the following: a. Alternative Water Resources Development Impact Fees approved. Effective: 12/2/08. Public schools exempt. b. Update on City of Tucson/Pima County Water Study — Discussion topics: Cost of Service, Rates, Financial resources. c. Water Provider Information Forum: Meeting: 9/10/08, Time: 7:00 a.m. Location: Randolph Golf Course -Discussion topics: Water Harvesting and Climate water usage. d. Upcoming Meetings: 9/17 Notice of Intent 10/1 T.C. meeting 10/2 AWPCA Luncheon, 10/6 Monday, SAWUA Forum at Metro Time: 2:00 p.m. 10/8 Study Session on Rates & CAP 10/13 WUC No action taken. FUTURE AGENDA ITEMS • Approval September 8, 2008 minutes • Arroyo Grande—P& Z update -Ref: WUC participation No action taken. CALL TO AUDIENCE—No Speakers. NEXT MEETING: October 13, 2008 Location: Hopi Conference Room ADJOURNMENT: Chair Powell entertained a motion to adjourn the meeting. MOTION: Commissioner Davis MOVED to adjourn the meeting. Commissioner Shapiro SECONDED the motion. MOTION PASSED: Unanimously Meeting adjourned: 8:05 P.M. 5 9/08/08 ACTION SUMMARY ORO VALLEY WATER UTILITY COMMISSION Prepared by, # ..� ' /Lo Iris L. Chaparro Senior Office Tice Specialis t 6 ACTION SUMMARY MINUTES ORO VALLEY WATER UTILITY COMMISSION WATER CONSERVATION SUBCOMMITTEE MEETING SEPTEMBER 8,2008 ORO VALLEY WATER UTILITY CONFERENCE ROOM 11000 N. LA CANADA DRIVE ORO VALLEY,AZ CALL TO ORDER at 4:00 p.m. PRESENT: Richard Davis Robert Milkey Karn Boyce Discussion of the following items, no legal action taken: 1. Discussion on The Steam Pump Ranch Project a. Discussed potential educational and water harvesting opportunities b. Discussed Central Arizona Groundwater Replenishment District (CAGRD) Conservation Grant as funding for the project i. Determined that objectives and goals must be established 2. Discussion on Vestar Water Harvesting Project a. Discussed tank capacities 3. Discussion on Weather Station Purchase a. Discussed the location of the weather station i. Discussed the need to follow standards when considering locations b. Determined that wireless capability would be ideal Prepared by Karn Boyce Water Conservation Specialist