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HomeMy WebLinkAboutMinutes - Water Utility Commission - 5/11/2015 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, May 11, 2015 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER: Chair Davis called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Richard Davis, Chair Richard Reynolds, Vice Chair Javier Arriaga, Commissioner Anne Campbell, Commissioner Winston Tustison, Commissioner Shanna Weagle, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator Robert Jacklitch, Project Manager Jeff Kane, Meter Reader Supervisor OTHERS: Councilmember Hornat CALL TO AUDIENCE - There were no speakers. 1. APPROVAL APRIL 13, 2015 MINUTES Chair Davis requested a correction to page 3 under Capital Projects. MOTION: A Motion was made by Commissioner Arriaga and Seconded by Vice Chair Reynolds to approve the minutes as amended. MOTION carried, 6-0. 2. DISCUSSION AND UPDATE ON ADVANCED METERING INFRASTRUCTURE PROJECT AND CUSTOMER SERVICE (S. Seng) Ms. Shirley Seng and Jeff Kane, Meter Reader Supervisor reported on the Advance Metering Infrastructure Project and Customer Service related issues. -Advanced Metering Infrastructure (AMI) Overview -AMI Project Phases Countryside Service Area and Oro Valley Service Area -AMI Project Map: Countryside and Oro Valley Service Area -AMI Meter Installation & Programming -AMI Project Financing (WIFA Loan) -AMI Benefits to Customers 5/11/2015 Water Utility Commission 1 -AMI Early Leak Detection -Graph: Reduction in Percentage of Unaccounted for Water -Customers Questions -Summary of Benefits No formal action was taken or required. There was discussion about the following: -Detection of leaks, early notification and repairs -AMI equipment security -Final cost of the AMI project and redistribution of work after completion of the project -Availability of other software data capable of working with AMI/FlexNet software -Percentage of customers enrolled in AquaHawk program -Rebates or monetary rewards for AquaHawk enrollees -Installation of AMI meters for commercial customers -Reliability and quality of commercial magnetic meters 3. DISCUSSION AND UPDATE ON GROUNDWATER PRESERVATION FEE ANALYSIS AND CASH RESERVE REQUIREMENTS (S. Seng) Ms. Seng reported that the Finance Subcommittee will be planning to meet the end of next week. There will be three items for discussion and possible recommendation: The GPF rates, the purpose and use of revenue from the GPF and the Cash Reserve Policy. All changes must be updated in the Mayor & Council Water Policies. These items will be discussed at the WUC Finance Subcommittee and then brought back to the Commission in June. Draft Schedule: 5/21: Finance Subcommittee meeting 6/08: WUC meeting 6/17 or 7/01: Present to Town Council No formal action was taken or required on this item. 4. DISCUSSION AND UPDATE ON COLORADO RIVER AND CENTRAL ARIZONA PROJECT WATER (P. Saletta) Mr. Saletta reported on: -Colorado River Lake Mead and Lake Powell reservoir levels -Arizona Streamflow, Colorado Streamflow - May 2015 -Colorado, Rio Grande, and Arkansas River Basins Mountain Snowpack - May 2015 -Arizona, Colorado, Utah and Wyoming Snow Pack - May 2015 Mr. Saletta gave a PowerPoint presentation. He pointed out that the presentation was a combination of slides from the Arizona Department of Water Resources and the Central Arizona Project. 5/11/2015 Water Utility Commission 2 -Arizona's Colorado River Use -Probabilities of Lower Basin Shortage 2015 thru 2019 -Shortage Impacts to Lower Basin -Water levels - Lake Mead Since 2000 -2007 Shortage Sharing Guidelines -2017 Projected Tier 1 Shortage Impact -Near-term Tier 2 Shortage Impact (CAP Delivery Priority) -Impact on CAP Water Delivery Rates (Tier 1 Shortage and Tier 2 Shortage) -CAP Water Rate Mitigation Measures -Oro Valley mitigation measures — Storing our CAP water and purchase of Groundwater Extinguishment Credits There was discussion on: -Cost of CAP water per acre foot -CAP shortages and declaration -Water reduction in southern California and water use off the Colorado River -No impact to Tucson Water IGA operational costs with respect to delivery of CAP water, CAP storage, recovery obligations and financial impact to Oro Valley -Potential Groundwater Extinguishment Credits cost increases Mr. Saletta mentioned that Oro Valley was buying and storing its CAP water, purchasing groundwater extinguishment credits in the Tucson Active Management Area (TAMA). Mr. Saletta also mentioned there was over 400,000 AF of water stored by the Arizona Water Banking Authority in TAMA reserved for municipal and industrial water users. The State of Arizona is investigating opportunities to reduce the impact of the structural deficit by reducing the amount of releases from Lake Mead. No formal action was taken or required. 5. DISCUSSION ON FUTURE AGENDA ITEMS (P. Saletta) Mr. Saletta discussed approvals on future agenda items. He explained Council's method and mentioned that the Commission followed the same protocol which would require two commission members to request a future agenda item. Mr. Saletta explained the Commission's role and four of the main items needing Council's approval such as water rates, policy changes, Intergovernmental Agreements and Water resource acquisitions. The Commission is appointed by Council and is advisory to Council. Commissioner Tustison mentioned that the Commission must be careful. Our job is primarily policy and the water issues mentioned and not operational issues. No formal action was taken or required. 6. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Councilmember Hornat reported on: 05/01: Ribbon cutting children's museum 5/11/2015 Water Utility Commission 3 05/02: Ribbon cutting El Conquistador- 9 hole golf course 05/02: Ribbon cutting O.V. Community Center 05/06: T.0 meeting Ref: General Plan Amendment Land Use (La Cholla, Lambert to Naranja) 05/20: O.V. Operating Budget Public Session 06/03: Final budget approval -Amphi School in Rancho Vistoso deferred for 1 year -Recall petitions at Pima County signatures are being checked 11/03: Elections for O.V. Council 7. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Tustison had no report. b. Conservation Subcommittee (Commissioner Davis) Commissioner Davis reported on: -Drought Response Plan review. The subcommittee will meet again to discuss this item before the next WUC meeting. -Update Your Voice Our Future: There were a few questions regarding water usage. The Development Committee was inquiring if reclaimed water could be used for construction and dust control uses. c. Water Resources Subcommittee (Commissioner Reynolds) Commissioner Reynolds had no report. 8. STAFF REPORTS a. Capital Projects (B. Jacklitch) Mr. Jacklitch reported on: -Countryside Service Area-installation of 12-inch water main on Hartman Lane Design Projects: -Tangerine Road - Reclaimed and potable water main design is ongoing. This project is part of the RTA Construction scheduled for 2016 -Lambert Lane - Design process continues and the road improvement design from Walgreens west is about 60% complete. The potable water main design will follow and will be complete in July. -Energy Efficiency Project - Five booster pumps have been installed to date. -Arizona Power Authority -April 3rd - APA declared a supply of long term power from Hoover Dam. Applications are now being accepted, but power is limited. 5/11/2015 Water Utility Commission 4 9. DIRECTOR'S REPORT (P. Saletta) a. Upcoming Meetings 5/20: Town Council meeting- Agenda Item - O.V. Operating Budget 5/21 or 5/22: Finance subcommittee meeting 6/03: Town Council meeting- Ref: O.V Final Budget 6/08: WUC meeting: Agenda Items - Groundwater Preservation Fee and Cash Reserve Policy. Commissioner Weagle will not be available to attend June 8 meeting. FUTURE AGENDA ITEMS -Presentation - Your Voice Our Future CALL TO AUDIENCE —There were no speakers. NEXT MEETING: JUNE 8, 2015 LOCATION: HOPI CONFERENCE ROOM ADJOURNMENT: 8:00 p.m. MOTION: A Motion was made by Commissioner Arriaga and Seconded by Commissioner Weagle to adjourn the meeting. MOTION carried, 6-0. 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 It day of , 2015. I further certify that the meeting was duly called and held and that a quorum as present. Dated this \ of day of s <A,Asi, , 2015. Prepared by: CL (1-0A-A-0 Iris L. Chaparro Senior Office Specialist 5/11/2015 Water Utility Commission 5