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Home My WebLink AboutMinutes - Water Utility Commission - 10/12/2015 } , M I N UTES � ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, October 12, 2015 � HOPI CONFERENCE ROOM � , � 1'100� N. LA CANADA DRIVE CALL TO ORDER - a 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, Com�missioner STAFF P�RESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Water Utility Administrator � Peter Abraham, Water Resources and Planning Manager � Robert Jacklitch, Project Manager CALL TO AUDIENCE - There were no speakers. 1. APPROVAL SEPTEMBER 14, 2015 MINUTES Commissioner Weagle had a correction to page 3 of the minutes. . IVIOTION: A Motion was made by Vice Chair Reynol�ds and Seconded by � Commissioner Campbell to recommend approval of the September 14, 2015 minutes as amended. MOTION carried, 6-0. . 2. DISCUSSION AND UPDATE ON WATER RATES ANALYSIS (Commissioner Tustison and S. Seng) Commissioner Tustison mentioned that the Finance Subcommittee met October 8, 2015 to discuss the assumptions to be used in the Water Rates Analysis FY 2016. Commissioner Tustison also mentioned that staff will be drafting a financial scenarioto bring back to the subcommittee in about two weeks. � Ms. Seng gave a Power Point presentation and update on Water Rates Analysis: � Reviewed: -Major Assumptions -Baseline Proforma - Operating Fund & Impact Fee Funds 10/12/2015 Water Utility Commission 1 Ms. Seng mentioned that in year 2019-20 Debt Service Coverage dropped to 1.23 and the Water Utility's minimum Debt Service Coverage requirement was 1.30. The Water Utility � will need to increase water rates to meet bond covenants and Council policies. Ms. Seng reviewed the AWRDIF and PWSDIF Funds. Ms. Seng reviewed several of the steps required to develop the Water Rates Analysis Report. Ms. Seng presented the schedule for the Water Rates Analysis. The Notice of Intent is , scheduled to be presented to Council on December 2, 2015 and the public hearing � scheduled for January 6, 2016. There was discussion regarding: -Capital project for reclaimed system $2.1 million main relocation in FY 15-16 . -Which funds are used to pay capital improvement project and groundwater pumping -Operating fund expenses 2018-2019 related to debt service payment 2007 bonds -The additional 500 AF of CAP water and costs associated with the purchase -Request to review Capital Improvement Project 15 Year plan No formal action was taken or required. � 3. DISCUSSION AND POSSIBLE ACTION ON SERIES 2005 BOND � REFUNDING (Commissioner Tustison and S. Seng) Commissioner Tustison mentioned that Stacey Lemos, Finance Director was also present at the subcommittee meeting to review the bond refunding process. Commissioner Tustison mentioned that the Water Utility's portion of the debt was 33% of the bonds to be refinanced. There was discussion about the Town refinancing Series 2005 Bonds through private placement saving the town a considerable amount of money. There was also discussion about the 2.5% new interest rate and that the Water Utility should save approximately $86,000 in interest payments in FY 2016-17. Ms. Seng gave a Power Point presentation and overview regarding the Series 2005 Bond Refunding and reviewed several scheduled dates. MOTION: A Motion was made by Commissioner Tustison and Seconded by Commissioner Arriaga to recommend approval and that Town Council authorize and approve the refunding of Series 2005 Bond Excise Tax Revenue Obligations. MOTION carried, 6-0. 4. DISCUSSION AND POSSIBLE ACTION REGARDING THE ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT (Commissioner Reynolds and Commissioner Weagle) � . Commissioner Reynolds reported that this item was discussed at the Water Resources Subcommittee August 20, 2015. There was discussion whether the intent of the report was focused on the Commission's work or the Water Utility progress. 10/12/2015 Water Utility Commission 2 S Mr. Saletta mentioned that the Water Utility Commission actually approves the report and forwards it to Council for their acceptance. The report is a Water Utility report. Chair Davis requested a recommendation from the Commission. Vice Chair Reynolds felt the Annual Report information required further review and discussion. MOTION: A Motion was made by Commissioner Arriaga and Seconded by Commissioner Tustison to keep the Oro Valley Water Utility Commission Annual Report title as is in its original form. MOTION failed, 3-3 with Chair.Davis, Commissioner Campbell, and Commissioner Weagle opposed. -- There was further discussion about a Commission study work group to review the Annual Report. .MOTION: A Motion was made by Commissioner Weagle and Seconded by Commissioner Campbell to approve to schedule a work study session to focus on exploring the potential possibility of revising the Water Utility Commission Annual Report format. MOTION passed, 5-1 with Commissioner Arriaga opposed. 5. DISCUSSI4N AND POSSIBLE ACTION REGARDING WELL A�ND AQUIFER � METRICS� (Commissioner Reynolds, Cornmissioner Weagle and P. Abraham) . Mr. Abraham gave an update regarding the water utility 2015 well field & aquifer metrics. � Review: 2015 well field monitoring: well location map -annual data collection and monthly data collection. Review: well field monitoring metrics -data collection, calculation of values & analysis. Mr. Abraham explained what data was collected, what calculations were made, and what � analysis are performed in evaluating a well performance. Review: Hydro-geologic cross section within the limits of the town boundary. Review: Static water level cross section A'-A' showing Upper Tinaja and Lower Tinaja beds. Review: Static water level cross section A'-A' with an elevation line shown 100-feet above the Lower Tinaja bed. Review: Well v,rater level change summary. There was discussion regarding: -Well production, SCADA and real time data availability, pumping level and sustainable water levels, system management and data collection. Commissioner Weagle requested that a well monitoring and aquifer metric report be presented to the Commission. Staff will report well monitoring and aquifer metrics annually to the Commission. - 10/12/2015 Water Utility Commission 3 ; No formal action was taken or required. 6. DISCUSSION AND POSSIBLE i4CTIOIV REGARDING AMENDMENT NUMBER 3 TO ADDENDUM 1 TO THE CITY OF TUCSON - TOWN OF ORO VALLEY INTERGOVERNMENTAL AGREEMENTS RELATING TO EFFLUENT AND TO RECLAIMED WATER (P. Saletta) � Mr. Saletta gave a Power Point presentation on the Reclaimed IGA Amendment 3 - Extension , Review: Reclaimed IGA Overview initial five year term - Interruptible and Non Interruptible reclaimed water service , Review: Recla.imed IGA Amendment extending the time frame 5 years to 2020 Review: Amendment 3 will be scheduled for the 11/18/15: Town Council meeting Review: Benefits of Amendment 3 — Non-interruptible reclaimed water service extended for 5 years and clarifies payments for effluent shortfall Staff recommends that the Commission recommend forwarding the IGA to Council and that Council approve the proposed Amendment 3 to the Reclaimed IGA. There was discussion about the following: -Long Term Storage Credits and cash payments � -Tucson Water Non-interruptible rate � -Payment of Reclaimed Water with effluent credits or long-term storage credits versus cash payments is at Oro Valley's option in the amendment MOTION: A Motion was made by Commissioner Arriaga and Seconded by Commissioner Campbell to recommending approval and forwarding to Council the proposed Amendment 3 to the Reclaimed IGA. MOTION carried, 6-0. � 7. TOWN C�UNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Councilmember Hornat reported on the following: -Golf courses losses � 11/04: T.C. meeting: Agenda Item - Nakoma Sky Planned Area Development 8. SUBCOMMITTEEICOIVIMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Tustison had no report. � b. Conservation Subcomrnittee (Commissioner Davis) Commissioner Davis reported the subcommittee met October 12, 2015. Attendees: Commissioners Campbell and VVeagle, Staff: S. Seng, K. Boyce. Mr. Mike Todem, Stormwater Engineer was unable to attend. The subcommittee will plan to reschedule another meeting. There was discussion about: -AquaHawk educational opportunities and penalties for non-adherence to water codes and policies. � 10/12/2015 � Water Utility Commission 4 � c. Water Resources Subcommittee (Commissioner Reynolds) Commissioner Weagle reported on the Water Resources Subcommittee. There was discussion about: -Well and aquifer metrics -Water Utility Annual Report - Groundwater Extinguishment Credits and Long Term Storage Credits. 9. STAFF REPORTS � a. Capital Projects (B. Jacklitch) Mr. Jacklitch reported the following: , Design projects -Tangerine Road water main: This project involves the relocation of a 24-inch water main. This project is part of an RTA DIS road widening project. The Water Utility design work is about 90% complete. -Lambert Lane & La Canada: This project will include the installation and relocation of approximately 3,000 linear feet of water main Upcomin_g Design: -La Cholla Widenin__c� Project -Widening from 2 lanes to 4 lanes Hardy Rd. to north Tangerine Rd. Design phase will begin December 2015. -Hoover Power - October 2nd Water Utility staff met with Tucson Electric Power and Arizona Power Authority to discuss bill crediting. Tucson Electric Power acknowledged the bill crediting feature and will contact the Water Utility in 2 to 3�weeks. Arizona Power Authority will also issue a proposed power sales contract October 15, 2015. 10. DIRECTOR'S REPORT (P. Saletta) Mr. Saletta announced Vice Chair Reynolds last term as commercial/turf representative would be ending December 31, 2015. He thanked Commissioner Reynolds for his dedication and service to the Water Utility Commission. The Utility is also seeking a Countryside area representative. A media release was posted Friday, October 9t" for both vacancies. a. Upcoming Meetings 10121: T.C. meeting . 1'1/06: CAP & Water Resources Research Center Sustainable Water for Southern Arizona 11/09: WUC meeting FUTURE AGENDA ITEMS January 2016 Items -Penalties for wasting water (Conservation Subcommittee) -Drought Preparedness Plan (Conservation Subcommittee) -Stormwater policies related to water conservation (Conservation Subcommittee) -Assured Water Supply (will be removed) CALL TO AUDIENCE - There were no speakers. 10/12/2015 Water Utility Commission 5 10. DIRECTOR'S REPORT Mr. Saletta announced Vice Chair Reynolds last term as commercial/turf representative would be ending December 31, 2015. The Utility is also seeking a Countryside area representative. A media release was posted Friday, October 9t" for both vacancies. � a. Upcoming Meetings 10/21: T.C. meeting 11/06: CAP &Water Resources Research Center Sustainable Water for Southern Arizona 11/09: WUC meeting � FUTURE AGENDA ITEMS January 2016 Items -Penalties for wasting water (Conservation Subcommittee) -Drought Preparedness Plan (Conservation Subcommittee) -Stormwater policies related to water conservation (Conservation Subcommittee) -Assured Water Supply (will be removed) CALL TO AUDIENCE - There were, no speakers. NEXT MEETING: NOVEMBER 9, 2015 LOCATION: HOPI CONFERENCE R�OM ADJOURNMENT MOTION: A Motion was made by Commissioner Tustison and Seconded by Commissioner Arriaga to adjourn the meeting. MOTION carried, 5-0. I hereby certify that the foregoing minutes are a true and correct copy of the minutes of t e regular session of the Water Utility Commission of Oro Valley, Arizona held on the I�- day of�c. e,� , 2015. I further certify that the meeting was duly called and held and that a quorum was present. � Dated this 1�.. day of , 2016. Prepared by: � � I ris L. Chaparro , Senior Office Specialist 10/12/2015 Water Utility Commission 5 ,