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HomeMy WebLinkAboutMinutes - Water Utility Commission - 10/13/2008 MINUTES • ORO VALLEY WATER UTILITY COMMISSION ITEM REGULAR SESSION ' OCTOBER 13, 2008 # HOPI CONFERENCE ROOM 11,000 N. LA CANADA DRIVE CALL TO ORDER — AT OR AFTER 6:30 P.M. APPE]OVE011111)1°15 ROLL CALL (a—( o) MEMBERS PRESENT: David Powell, Chair Winston Tustison, Vice Chair Rick Davis, Commissioner Robert Milkey, Commissioner Suzanne L. Novelli, Commissioner Elizabeth Shapiro, Commissioner MEMBERS ABSENT: John Hoffmann, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator David Ruiz, Engineering Division Administrator OTHERS: K.C. Carter, Council Member D. McKee, Chair Planning & Zoning Commission CALL TO AUDIENCE- At this time, any member of the public is allowed to address the Water Utility Commission on anyissue not listed on today's agenda. Pursuant to the Arizona Open u y Meeting Law, individual Commissioners may ask Town Staff to review the matter, ask that the matter beg laced on a future agenda, or respond to criticism made by speakers. However, the p Water UtilityCommission maynot 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 -- None 1. APPROVAL SEPTEMBER 8, 2008 MINUTES — Chair Powell entertained a motion to approve the September 8, 2008 minutes. MOTION: Vice Chair Tustison MOVED to approve the September 8, 2008 minutes. Commissioner Novelli SECONDED the motion. MOTION PASSED: Unanimously 2. ARROYO GRANDE UPDATE — Mr. Saletta introduced S. More Planning & Zoning Director she will be addressingthe Commission on the Arroyo Grande Special Area Plan Policies. He that P& Z Commission approved the policies. This document will be presented to indicatedpp To Town Council at a Public HearingNovember 19. Staff will be asking the Commission to support the policies particularly the Water Supply section. • Sarah More, P&Z Director Update —Handout: P&Z Commission Communication -Review: -Arroyo Grande area is approximately 14 square miles north of Oro Valley up to Pinal County line. 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION —General Plan Amendment for the Arroyo Grande Planning Area is a collaborative effort between Town of Oro Valley, Arizona State Land Development Dept (ASCD) and Community By Design. -State Land agrees to preserve approximately 5500 acres as open space from the original 9100 acres, reduce new urbanization and planning which will reduce impact to the Town. -Review Section of the Proposed Special Area Policies for Arroyo Grande. Ms. More requested that the Commission particularly review the Water Supply Section of the Policy and that they make a recommendation or a motion in support of the policies. Water Supply discussion and question session -Indicate which process State will use to determine future CAP allocation for the Arroyo Grande area/Negotiation Goals (Commissioner Milkey). Ms. More indicated there were no processes developed. State Land claims they have over 1 million acres of land and also has some CAP water supply. - Renewable Water Supply: Vice Chair Tustison felt that the renewable water supply issue addressed under item #7 was a very important tool for the Town and for the developers considering construction and purchasing land in the area. -Policy has water standard conditions (Commissioner Davis) -Ms. More updated the Commission on P&Z schedule: -T.C. Adoption November 19: The General Plan Amendment, Pre-annexation Development Agreement and Environmentally Sensitive Lands Ordinance addresses: riparian, hillside regulations and mapping. -Planning & Zoning to develop a PAD (Planned Area Document) -Planning & Zoning to facilitate with State Lands & Pima County for the sale of the open space land -Pima County: Bond money available for the purchase of open lands -WUC involvement as project process moves forward (Commissioner Milkey). Ms. More explained that the Commission can make a recommendation to Council based on the policies or as interested citizens. They are welcomed to participate in the Public Hearing process. In addition, the Commission can also participate in the design standards and water conservation plans. Mr. Saletta reviewed the seven elements listed under the Water Supply section of the . Discussion and question session occurred. -How will a developer convey additional "wet" water? (Commissioner Milkey). Mr. Saletta explained that there was potential for CAP water from Indian or agricultural supplies and the potential for effluent water availability. -Hydrology section does not address storage or recharge facilities (Commissioner Davis). Mr. Saletta explained that water harvesting could be covered under the Conservation Plan. There may be ways to enhance natural recharge but there are no other plans for recharge. Mr. Saletta requested that the Commission consider a motion to support the policies in the Water Supply section. 2 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION MOTION: Milkey Commissioner MOVED that the Water Utility Commission reviewed the Water Policies and wishes to conveyits endorsement Arroyo Grande of these (policies). In particular, we wish to state our conviction that these are appropriately protective of the water supply 1 for residents within the present Water Utility Service Area. Commissioner Davis SECONDED the motion. MOTION PASSED: Unanimously 3. WATER RATES ANALYSIS — Mr. Saletta reported that the October 8 Council Study Session went well. In attendance were Vice Chair Tustison, Commissioners Shapiro & Milkey. The Finance Subcommittee tee reviewed both the Water Rates Analysis Report dated April 16 and the Addendum dated September 17, 2008. Vice Chair Tustison reviewed the background and important factors in setting the rates: • Utility must maintain its financial stability by raising rates to cover its expenses. • Long term financial requirements for the delivery of CAP water. • Town Council direction - Consider rewarding customers conserving water, increasing charges to larger er water users, consider reduction or no increase in base rate. The Council requested that Staff and Commission return with one recommended Financial Scenario. Staff and Finance Subcommittee reviewed all three main scenarios their advantages and disadvantages. Finance• subcommittee agreed that a Cost of Service Study should be Staff and g performed to assist in future residential rate increases and to minimize the impact to larger industrial users. • Rate Structure did not include a conservation charge at this time. • Financial Scenario R - Creates moderately and higher charges for increasing use but causes large increases to industrial users which is also indicative in Scenario S. • Preferred Financial Scenario — Increases the base rate, made a modest increase in levels of use, does not significantly impact the large water users. • Recommendation:n: The Finance Subcommittee and staff recommend the original Preferred Financial Scenario be forwarded to Council for approval. Vice Chair Tustison ended his report. Ms. Seng reviewed components of the Cost of Service Study. The Utility could spend approximately $50,000 to $60,000 for this study. A consultant would be hired to perform the study. A handout was distributed on the various findings pertaining to the Rate Analysis report. Council member Gillaspie requested the information, which will be incorporated in the T.0 communication. Chair Powell felt that an extensive amount of work was performed preparing the scenarios, he information for future years so that staff does not have go through asked if Council had enough Sengthought again. Ms. Council had the same exercise g sufficient information and g understanding of the scenarios. She explained that 4 or 5 scenarios need to be developed before a Preferred and Alternate Financial Scenario are established. This year was an exceptional year staffperformed erformed 23 scenarios in order to establish the Preferred and Alternate Financial scenarios. Mr. Saletta mentioned that in the future the Commission and Staff will continue to bring a Alternate Financial Scenario to Council. This year Council had several other Preferred and an concerns that Staff had to address, however Staff will continue with its original rate setting process. 3 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION simplify process Milkey felt that it could helpsim lif the by discussing in advance what Kind of options staff would like to present for example a standard scenario, conservation, impact :o large water users. Chair Powell indicated that Council does set specific criteria for staff to follow. He felt that the to the larger water users. Mr. Saletta have a large Preferred Financial Scenario did not gimpact explained that the original Preferred Financial Scenario was the Commission's original recommendation made to Council in April 2008. Scenario R because of the meter sizes the impact to the Mr. Saletta explained that FinancialI high. Commissioner Milkey did not agree and felt that Financia large water users was too Scenario R did not show much difference between the Preferred Financial Scenario. Ms. Seng reviewed Table (1) on pg #2 of the Addendum to the Water Rates Analysis Report. o impact to La Cholla Air Park. Ms. Seng continued to explain The 13.2 /a represents the highest p the increases by various meter sizes. Chair Powell reaffirmed the Commission's n's recommendation to move forward with the Preferred Financial Scenario to Council. Commissioner Milkey asked Staff for further clarification on the increases under Financial Scenario R and the Preferred Financial Scenario. He felt that the calculations for a 4 inch meter groundwater Financial Scenario R for the current preservation fee was incorrect, therefore the percentages of increase were over stated and incorrect in both reports Ref: pg. 2- 9 & pgs C-6. Ms. Seng agreed there increases an error and verified the percent under Financial Scenario R. Commissioner Milkey pointed out that that the increases under Financial Scenario R were not to the Preferred Financial Scenario. He felt that stating as large as they appear in comparison R penalized the large water users more was simply inaccurate. that Financial Scenariog � sand suggested that 1 or 3 comparisons be made for the various meter size Chair Powell p � n and to proceed with the Finance Subcommittee's recommendation percentages, but agreed motion did not pass staff could proceed with additional analysis. motion and that if the The Commission reviewed variations within (1 inch — 4 inch meter) the Preferred Financial Scenario and Financial Scenario R with corrected calculations for the large meters and water users. The corrections indicted that there was still an increase for large commercial water users and large meters in Scenario R. o Chair Powellentertained a motion from the Finance Subcommittee to approve the Preferred . Financial Scenario or Financial Scenario R for Council approval. MOVED to recommend to Town. Vice Chair Tustison Council that the Water. the Preferred Financial Scenario be adopted by Town Rates Fees and Charges in with Commissioner Shapiro SECONDED the motion. MOTION carried (5-1) w th Commissioner Milkey opposed. 4 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION MOTION: Vice Chair Tustison MOVED to recommend that the Water Utility staff investigate performing a Cost of Service Study for the next year. Commissioner Shapiro SECONDED the motion. MOTION PASSED: (6-0) 4. APPOINTMENTS FOR WUC SUBCOMMITTEES - Chair Powell appointed the members of the WUC subcommittees. • Finance Subcommittee - Chair: Winston Tustison Commissioner Shapiro • Renewable Water Resources Subcommittee - Chair: John Hoffmann Commissioner Powell • Conservation Subcommittee - Chair: Rick Davis Commissioner Milkey • Council Liaison — Councilmember: Barry Gillaspie Commissioner Novelli will join a subcommittee at a later time. There was no further discussion or questions. No action taken. 5. FORMATION OF A WUC AGENDA SUBCOMMITTEE — Chair Powell reported the following: • The concept of forming this is to involve Commissioners in developing the WUC Agendas. Agenda Rotation — Rotation will be set alphabetically one commissioner per meeting plus the Water Utility Director. Next Agenda: Commissioner Davis • Agenda will be sent via email by Director one week to ten days prior to the meeting. Chair Powell entertained a motion for the formation of the WUC Agenda Subcommittee. MOTION: Commissioner Davis MOVED to form a Water Utility Commission Agenda Subcommittee consisting of the Chair of the Water Utility Commission, one Commissioner on a rotating basis in alphabetical order, and the Water Utility Director to review and set the Water Utility Commission Agendas. Vice Chair Tustison SECONDED the motion. MOTION PASSED unanimously (6-0). ITEM #6 CAP WATER DELIVERY SYSTEM UPDATE — Mr. Saletta gave a power point presentation: The Planning for the Development of Central Arizona Project Water for the Town of Oro Valley. The following items were covered: -Groundwater -Reclaimed Water -Water Conservation Program -Need for Renewable Water Supply in Oro Valley -Water Use and Sources of Supply (Graph) -Reclaimed Water System -Central Arizona Project Northwest Water Providers -CAP Progress — N.W. Water Providers -Water Treatment Studies (photos) -Treatment and Delivery of CAP Water -Treatment Train Alternative -Concentrate Management Alternative -Routing Study - DRAFT CAP Delivery Schedule Discussion and question session occurred. -Population & additional water source for future Arroyo Grande Project (Commissioner Milkey) -Year 2025 Groundwater withdraw target/consumption (Commissioner Milkey) -Arroyo Grande: Reclamation or effluent facility potential (Commissioner Davis) -Roger Road Facility effluent delivery potential (Commissioner Milkey) 5 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION -Use of Halophytes (Commissioner Davis) of a reliabilityreservoir/BOR Budget submittal (Commissioner -Target for construction Mikey). Mr. Saletta indicated funding the Bureau of Reclamation would submit their request year 2010/11 . There were no further questions Mr. Saletta ended his report. No action taken. TOWN COUNCIL MEETINGS/COMMUNICATIONS —No Report SUBCOMMITTEE/COMMISSIONER REPORTS — Davis reported that the weather station Conservation Subcommittee - Commissioner wail be pr building,installed by the back of Planning & Zoning there is also the possibility of using sola energy and cellular phone access. Finance Subcommittee — No other reports Renewable Water Resources Subcommittee — No report. STAFF REPORTS • Customer Service Report — Ms. Seng reported on the following: -Handout: Review meter installation & Actual EDUs as of September 30, 2008 Ms. Seng ended her report. No action taken. • Capital Improvement Projects — Mr. Ruiz reported on the following: - (Construction Pro ect Completion: November 2008. - ch View Lane Well C-9 Project) . -Pus ch per minute ofpotable ground water to existing system Additional 700 800 galsI -Re-drill of existing Well E-1 Location: Tangelo & 1st Ave. Staff is currently putting g together a Request for Qualifications. Drilling Schedule: January 2009 Design (3 Million gallon): Completion: 95% Location: -La Canada E-Zone Reservoir � Moore & King Air. Future goal: Will allow installation of 2 pump stations and which will be of value for future delivery of CAP water I y — Mr. Ruiz reported on pot • Potable & Reclaimed Water Projects able water demand.. Peak DailyDemand Operations/Precipitation Report -September 2008: Potable 2008: Potable Operations Report - Reservoir Levels -Septemberp -Second golf course on reclaim water, which will help reduce potable water demand • Reclaimed Water Projects -September 2008: Reclaimed Water System Report Water Demand. Delivered: 46,628,000 gals for the month of September — Two El • Reclaim Project Phase IIConquistador golf courses on reclaim water. water delivery Sky: Reclaim scheduled week ending 10/17/08 Mr. Ruiz indicated that the Reclaim Projects Proects was basically complete and has been very successful in reducingour dependence on ground water. Mr. Ruiz ended his report. No action taken. 6 10-13-08 MINUTES, ORO VALLEY WATER UTILITY COMMISSION DIRECTOR'S REPORT — Mr. Saletta reported the following: a. Citizen Planning Institute & WUC Training -Handout: Water Utility Commission training updated spreadsheet. Commissioners should check the various events and training hours. b. CAGRD Proposed Legislation — Staff submitted several changes on the proposed bonding legislation for the Central Arizona Ground Water Replenishment District. Staff will meet with Cliff Neal Director CAGRD to discuss other potential changes. c. Upcoming Meetings — SAWUA Forum was well attended. Attendees: Commissioners Milkey and Davis -10/15 Council Meeting cancelled -11/5 T.C. Public Hearing on Rates -11/10 WUC Meeting -11/19 Council Meeting Topic: Arroyo Grande General Plan & policies Mr. Saletta ended his report. No action taken. FUTURE AGENDA ITEMS • Approval October 13,2008 minutes No action taken. CALL TO AUDIENCE — Council member KC Carter reported that he attended the PAG meeting. Topics: Pima County Waste Water ROMP and Marana DMA request. NEXT MEETING: November 10, 2008 Location: Hopi Conference Room ADJOURNMENT: Chair Powell entertained a motion to adjourn the meeting. MOTION: Commissioner Shapiro MOVED to adjourn the meeting. Commissioner Milkey SECONDED the motion. MOTION PASSED: Unanimously Meeting adjourned 8:15 P.M. Prepared by: 1 _ Ot,a/11-0 Iris L.Chaparro Senior Office.Specialist 7