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Home My WebLink AboutMinutes - Water Utility Commission - 4/9/2012 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, April 9, 2012 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER -AT OR AFTER 6:00 P.M. ROLL CALL PRESENT: Robert Milkey, Chair Winston Tustison, Vice Chair Richard Davis, Commissioner Richard Reynolds, Commissioner EXCUSED: John Hoffmann, Commissioner Elizabeth Shapiro, Commissioner Richard Verlaque, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator David Ruiz, Engineering Division Manager Robert Jacklitch, Project Manager OTHERS: Stacey Lemos, Finance Director Chair Milkey rearranged the agenda to accommodate Councilmember Gillaspie's schedule and moved Items 3 and 4. 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. 1. APPROVAL MARCH 12, 2012 MINUTES 4/09/12 Water Utility Commission Minutes 1 MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Davis to approve the March 12, 2012 Water Utility Commission minutes. MOTION carried, 4-0. 3. DISCUSSION REGARDING THE SUSTAINABLE ANNUAL GROUNDWATER PRODUCTION RATE (P. Saletta/B. Jacklitch) Mr. Saletta gave a presentation regarding the Sustainable Annual Groundwater Production Rate requested as an agenda item by Commissioner Shapiro. Mr. Saletta covered the following areas: The purpose and use of the 5500 acre feet per year of Sustainable Annual Groundwater Production Rate was to prorate cost of renewable supplies between existing customers and future growth and use as a tool to reduce groundwater pumping. It is used for aquifer and well management and provided a good basis for impact fees and planning without significant groundwater modeling costs. The basis for the 5500 acre feet per year was a report conducted by Brown & Caldwell dated March of 2007. The report used data from USGS, U of A and the Water Utility records. The Theis method was used to calculate drawdown and water levels in the Oro Valley Water Utility wells. Mr. Jacklitch gave an explanation regarding the Geologic Cross Section Criteria. He reviewed plot formations, unsaturated basin fill deposits, Saturated basin fill deposits (groundwater aquifer), Upper and Lower Tinaja water bed formations and Sustainability threshold levels in Oro Valley wells. He also indicated that Oro Valley receives most of its water from the Upper Tinaja Beds. Mr. Jacklitch reviewed the screening levels for each of the well formations, and also explained the water level projection estimations for year 2037. Mr. Saletta mentioned that some of Oro Valley's wells do not fully penetrate the aquifer. The Utility performed the study with 21 wells; however with 16 wells we were still able to pump water to achieve the 5500 AF. The results also revealed that it could be possible to continue to pump at 888 AF per year in the Countryside area. There was discussion regarding: -Recharge estimates that ranged from 3800 acre feet per year to 7500 acre feet per year. -Pumping projection at 5500 acre feet per year for another 30 years after year 2007 -Monitoring of wells, water levels and maintenance -History of water well levels in Countryside areas 4/09/12 Water Utility Commission Minutes 2 -The term sustainable rate relative to the 5500 acre feet per year amount -Population and demand projections -The use of groundwater over the sustainable rate and the expense to the community. There were no further discussions. 4. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Gillaspie) There were no reports. 2. DISCUSSION AND POSSIBLE ACTION REGARDING THE 2012 REFUNDING OF THE 2003 SENIOR LIEN BONDS (Commissioner Tustison/P. Saletta/S. Lemos/S. Seng) Vice Chair Tustison reported that staff had been working on a project that will lower municipal bond interest rates for outstanding bonds originally issued in 2003 that would be refunded and save the Water Utility over $2.0 million. Mr. Saletta reported that the principal balance being refunded was approximately $20.0 million. Staff is moving forward and will be presenting this item to Council on the 18th of April and staff is requesting the Commission's support and recommendation for Council approval. Ms. Lemos Finance Director reported on the 2003 bonds and refunding process. The current 5.0% interest rate on the outstanding bonds will be refunded with bonds at 3.0%. A resolution for the bond refunding will be presented to Council April 18th and the new bond pricing could take place as early as May. There will also be a reduction in outstanding debt to reduce annual debt service payments which will facilitate meeting the debt service coverage requirement. There is a scheduled due diligence conference call on April 10th with underwriters, legal, and staff to review the preliminary official statement. There is a possibility of an upgrade to the Town's bond rating. Oro Valley's present bond rating is AA- . Mr. Saletta explained that the funds used to pay down the principal balance will be paid from the Potable Water System Development Impact Fee Fund. There were no further discussions or questions. MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Reynolds to recommend approval to Town Council of the 2012 refunding of the Water Utility's 2003 Series Senior Lien Bonds. 4/09/12 Water Utility Commission Minutes 3 MOTION carried, 4-0. 5. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Vice Chair Tustison had no report. b. Conservation Subcommittee (Commissioner Davis) Commissioner Davis had no report. c. Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Reynolds had no report. 6. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported on the Customer Service Report - March 2012, Meter Connections, Meter replacements and Water Audits. Ms. Seng ended her report. b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported on several capital projects: Lambert Lane Water Main Improvements; El Conquistador booster station; Campo Bello Water Main replacement project; Rancho Vistoso Reclaim chlorine storage facility. Mr. Jacklitch ended his report. c. Potable and Reclaimed Water System Report (D. Ruiz) Mr. Ruiz presented several slides on Potable and Reclaimed Water Systems -Total Water Production; -2011-12 Monthly Water Production Report; -Daily Demand Operations Report March 2012; -Reclaimed Water Deliveries. Mr. Ruiz ended his report. 7. DIRECTOR'S REPORT (P. Saletta) a. Colorado River Basin Streamflow and Snowpack Mr. Saletta presented information on the following topics: Arizona and Colorado Streamflow reports, Arizona and Colorado Current Snow Water Equivalent, and Lake Mead & Powell Colorado River Water Storage. b. Upcoming Meetings 4/11: Town Council Budget Study Session 4/18: Town Council meeting 4/25: Tentative Town Council Study Session 4/09/12 Water Utility Commission Minutes 4 5/02: Town Council meeting 5/14: WUC meeting Mr. Saletta ended his report. FUTURE AGENDA ITEMS -Summary and Detail of Water Utility's upcoming budget (Chair Milkey) 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. Mr. Art Weise Oro Valley, resident spoke on water conservation and water evaporation in swimming pools. He suggested including some information to customers in their bills regarding how to minimize evaporation in pools Staff will look into this matter and provide more information. ADJOURNMENT: 7:20 p.m. MOTION: A Motion was made by Vice Chair Tustison and Seconded by Commissioner Davis to adjourn the meeting. MOTION carried, 4-0. Prepared by: Z.; 0( dz. A-,;) Iris L. Chaparr Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Water Utility Commission of Oro Valley, Arizona held on the 9th day of April 2012. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 5 day of 4 , 2012. C 4/09/12 Water Utility Commission Minutes 5