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Home My WebLink AboutPackets - Water Utillity Commission (45) AGENDA WATER UTILITY COMMISSION REGULAR SESSION November 14, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members 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 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. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE OCTOBER 10, 2022 REGULAR SESSION MEETING MINUTES 2.DISCUSSION REGARDING OPPORTUNITIES FOR COMMISSION INVOLVEMENT WITH THE NEXT 10-YEAR GENERAL PLAN UPDATE (M. SIMMS) 3.UPDATE AND DISCUSSION ON INCREASING COSTS ASSOCIATED WITH OPERATING THE WATER UTILITY (P. ABRAHAM) 4.DISCUSSION AND POSSIBLE ACTION ON CANCELLATION OF THE DECEMBER WATER UTILITY COMMISSION MEETING 5.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) 6.SUBCOMMITTEE/COMMISSION REPORTS A.FINANCE SUBCOMMITTEE B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE 7.DIRECTOR'S REPORT CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members 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 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. FUTURE AGENDA ITEMS ADJOURNMENT POSTED: 11/09/2022 AT 5 p.m. dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Water Utility Commission 1. Meeting Date:11/14/2022 Submitted By:Nicole Noble, Water SUBJECT: REVIEW AND APPROVAL OF THE OCTOBER 10, 2022 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I move to approve (approve with changes) the October 10, 2022 regular session meeting minutes. Attachments Draft Minutes D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION October 10, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER - Vice Chair Hitt called the meeting to order at 5:12 P.M. ROLL CALL Present: Chuck Hollingsworth, Commissioner Robert Milkey, Commissioner Tom Marek, Chair Patricia Olson, Commissioner Greg Hitt, Vice Chair Absent: Byron McMillan, Commissioner Alan Forrest, Commissioner Staff Present:Peter A. Abraham, P.E., Water Utility Director Mary Rallis, CPA, Water Utility Administrator Lee Jacobs, P.E., C.P.M., Engineering Division Manager David Allred, Water Operations Manager CALL TO AUDIENCE - There were no speaker requests. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE SEPTEMBER 12, 2022 REGULAR SESSION MEETING MINUTES Motion by Commissioner Robert Milkey, seconded by Commissioner Chuck Hollingsworth Vote: 5 - 0 Carried 2.DISCUSSION ON WATER RATES ANALYSIS SCHEDULE (P. ABRAHAM) Water Utility Director Peter Abraham went over the water rates analysis goals which included developing water rates that generate sufficient revenue to: -Meet revenue and cash reserve requirements -Meet debt service coverage requirements -Ensure revenue stability -Maintain the overall financial health of the Utility -Maintain the overall financial health of the Utility Water Utility Director Peter Abraham explained that water rates shall also: -Promote water conservation -Be the minimum necessary to avoid rate shock -Adapt to changing rate drivers and consumer trends -Be equitable between customer classifications -Recover cost of service (potable and reclaimed) Water Utility Director Peter Abraham went over the tentative schedule for water rates analysis. 3.UPDATE AND DISCUSSION ON NWRRDS (P. ABRAHAM & L. JACOBS) Water Utility Director Peter Abraham reviewed the foundation of the NWRRDS project and provided an update on the current state of the partnered NWRRDS project including: -The partners (Oro Valley, Marana and Metro Water) evaluating the contractor bidding environment -The partners working with the contracting community to reduce the exposure to risk and minimize supply chain issues in regards to the partnered NWRRDS project Engineering Division Manger Lee Jacobs provided an update on the independent NWRRDS projects and the value they will have for Oro Valley. Commissioner Patrica Olson requested more information on the work involved with the contracting community to reduce the exposure to risk and minimize supply chain issues in regards to the partnered NWRRDS project. Commissioner Tom Marek asked if the acceleration of shortages has had any impact on moving forward with the projects and Water Utility Director Peter Abraham explained that because of the relative limited breadth and depth of the independent NWRRDS projects compared to the partnered NWRRDS project, that the Utility expects that supply chain issues and shortages will be manageable. 4.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) Engineering Division Manager Lee Jacobs presented updates on the following: -Well rehabilitation of Well D-1 -Nakoma Sky Production Well -Steam Pump Well -Design of redundancy water line in the Catalina Shadows and Palisades area -Design of redundancy water line in the El Conquistador subdivision -Countryside Wheeling Station upgrades -Rancho Vistoso Booster Station evaluation and design -Sun City H and G Zone Booster pressure tank replacement 5.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) Water Utility Administrator Mary Rallis presented updates on the following: -FY 2022/23 Revenues -FY 2022/23 Expenses -Customer Service update through 9/30/22 Commissioner Tom Marek inquired if anything specific is being watched yet and Water Utility Administrator Mary Rallis replied that there is nothing specifically being watched at this time. 6.UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITES (D. ALLRED) Water Operations Manager David Allred provided updates on the following: -Staffing -Water Operations Administration -Water Production activites -Water Control System activites -Water Distribution activites -Water Meter Operations activites -Water Quality activities Commissioner Tom Marek suggested budgeting 5-10% for the next couple of years for feature enhancements in regards to SCADA updates. 7.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) Water Utility Director Peter Abraham reported on water usage by type in the following areas: -Oro Valley main service area for January-September 2022 -Countryside service are for January-September 2022 8.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) Councillmember Bohen reported that the Council is back to meeting on a regular schedule. Councilmember Bohen reported that at the last meeting the Council approved that applications for general land amendments can now be submitted at any time of the year. 9.SUBCOMMITTEE/COMMISSION REPORTS A.FINANCE SUBCOMMITTEE - No report. B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report. 10.DIRECTOR'S REPORT Water Utility Director Peter Abraham provided the Director's Report which included upcoming meeting and event dates. CALL TO AUDIENCE - There were no speaker requests. FUTURE AGENDA ITEMS - There were no suggested future agenda items. ADJOURNMENT Motion by Commissioner Tom Marek, seconded by Commissioner Greg Hitt to adjourn the meeting at 5:57 P.M. Vote: 5 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 10th day of October, 2022. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Nicole Noble Senior Office Specialist Water Utility Commission 2. Meeting Date:11/14/2022 Submitted By:Nicole Noble, Water SUBJECT: DISCUSSION REGARDING OPPORTUNITIES FOR COMMISSION INVOLVEMENT WITH THE NEXT 10-YEAR GENERAL PLAN UPDATE (M. SIMMS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Presentation Opportunities for Commission involvement with the next 10-Year General Plan Update Water Utility Commission November 14, 2022 10-year policy document guiding long-term decisions for the community What is a General Plan? Community Desires Directions and Actions Legal Requirements Importance of the General Plan The General Plan gets things done! Goals and policies to bridge the gap between the community’s vision and reality Actions to fulfill the goals and policies Water Resources Utility Operations Examples of Water related actions: •Action 85: Create programs that utilize Advanced Metering Infrastructure (AMI) technology across user groups that encourage self-monitoring and facilitate improved water management practices through early leak detection. •Action 86: Continue conservation pricing through a tiered rate structure for water customers. The General Plan Gets Things Done Delivering on promises made to the community 95% of the 310 actions are being worked on or complete 4 more years to complete remaining actions Prioritized through the Town Council Strategic Leadership Plan Annual Progress Report presented to Town Council at the end of each year Next presentation –Dec. 7 First enacted in 1998 Growing Smarter Legislation Contents Topics based on jurisdiction size and growth rate Zoning and General Plan decisions in conformity Procedural Requirements Public involvement plan Jurisdiction notification Adoption Voter Approval (51+%) 2/3 Majority Vote of Town Council Re-adopt every 10 years Topics of interest Housing Water Land Use Environ- ment and Views Transpor- tation Public Safety Parks and events Town growth Your Voice, Our Future (YVOF) General Plan Ratified by 71% of the voters in Nov. 2016 Won the “Best Public Outreach Award” from the Arizona’s Chapter of the National Planning Association and the “Silver Circle Award for Citizen Participation” from the City- County Marketing Association Annual status reports presented to the Commission and Town Council YVOF -Three years of planning What the community told us Residents in Oro Valley. . . Most value: Safe community with low crime rate Scenic and natural beauty Sense of community Least value: Lack of services Rapid growth To build a better community focus on: Managing land development Maintaining safety Employment opportunities Parks Festivals or cultural events Shopping opportunities First Step: The Public Participation Plan (PPP) Open –input shapes the plan Inclusive –all demographics Convenient –diverse involvement opportunities Collaborative –decisions that resonate with the community Accountable –ongoing assessment Invitation to all board/commission members Public Participation Plan Advisory Group Purpose: Provide opinions regarding the extent of the General Plan update Identify community values relative to public participation Shape a communications strategy to reach Oro Valley’s broad demographic range Select a preferred communication strategy and budget among three public participation levels or alternatives Tentative schedule 4 weekly meetings throughout December/January Participation in-person or online via Zoom Future Board / Commission Involvement Routine check-ins with boards and commissions Volunteer opportunities to help gather community input and spread the word Focused committee work to development goals, policies and actions Public Participation Plan Official Public “Kick-Off” Committee Work Adoption and Ratification Community Engagement Throughout Entire Process We Are Here Questions/Comments: Milini Simms, AICP Principal Planner 520-229-4836 msimms@orovalleyaz.gov Water Utility Commission 3. Meeting Date:11/14/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON INCREASING COSTS ASSOCIATED WITH OPERATING THE WATER UTILITY (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Presentation Water Utility Commission November 14, 2022 Oro Valley Water Utility Update & Discussion on Increasing Costs Associated with Operating the Water Utility Peter A. Abraham. P.E. Water Utility Director Water Rate Drivers Staff currently working on the FY 2023-24 water rates analysis Several areas of the Utility’s operating expenses are trending upwards Key areas are shown below Water Rate Driver Definitions CAP Capital Charge: Payment of that portion of the CAP repayment obligation attributed to the M&I function CAP Delivery Charge: Cost recovery associated with fixed and variable costs to deliver CAP water TW CAP Wheeling: Charges by Tucson Water to deliver OVWU CAP water to OV service area TW Reclaimed Delivery Charge: Charges by Tucson Water to deliver OVWU reclaimed water to OV service area Administrative Fee Charges by the Town for services provided to the OVWU Water Rates Analysis Discussion Water Utility Commission 7. Meeting Date:11/14/2022 Submitted By:Nicole Noble, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Presentation Peter A. Abraham, P.E. Water Utility Director Water Utility Commission November 14, 2022 Oro Valley Water Utility Director’s Report Upcoming Meetings November 16, 2022 Town Council Regular Session Council Chambers –6 pm December 7, 2022 Town Council Regular Session Council Chambers –6 pm December 14, 2022 Water Utility Commission Meeting Hopi Conference Room –5 pm December 21, 2022 Town Council Regular Session Cancelled –Holiday Break January 9, 2023 Water Utility Commission Meeting Hopi Conference Room –5 pm Thank You