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HomeMy WebLinkAboutMinutes - Water Utility Commission - 1/14/2019 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION MONDAY,JANUARY 14,2019 HOPI CONFERENCE ROOM 11000 N.LA CANADA DRIVE CALL TO ORDER—Chair Campbell called the meeting to order at 6:00 p.m. ROLL CALL PRESENT: Anne Campbell,Chair Byron McMillan,Vice Chair Chuck Hollingsworth,Commissioner Robert Milkey,Commissioner Winston Tustison,Commissioner STAFF PRESENT: Peter Abraham,P.E.,Water Utility Director Shirley Kiel,Utility Administrator Lee Jacobs,P.E.,C.P.M.,Engineering Division Manager ALSO PRESENT: Councilmember Piña CALL TO AUDIENCE:Chair Campbell opened this item after the Director's Report. 1. APPROVAL OF NOVEMBER 13,2018 MINUTES MOTION:A motion was made by Commissioner Milkey and seconded by Commissioner Tustison to approve the November 13,2018 minutes as written.MOTION carried,5-0. 2. DISCUSSION AND POSSIBLE ACTION ON 2019 WATER UTILITY COMMISSION WORK PLAN Mr.Abraham discussed the work plan.Chair Campbell added an item on monitoring our shared aquifer.Mr.Abraham confirmed this item will be addressed in March during the discussion on groundwater metrics and wellfield condition. MOTION:A motion was made by Vice Chair McMillan and seconded by Commissioner Hollingsworth to approve the 2019 Work Plan to include the additional discussion in March during the wellfield analysis.MOTION carried,5-0. 3. DISCUSSION AND POSSIBLE ACTION ON WATER RATES 01-14-19 Water Utility Commission 1 Ms.Kiel reviewed the following: -Water Utility enterprise fund -Water rates analysis requirements and goals -Analysis assumptions -Consumer trends and changing rate drivers Ms.Kiel reviewed the preferred financial scenario: -Achieves water rates analysis goals -Includes future debt -Balances revenue received from base and commodity rates -Increases fixed cost recovery and revenue stability -Includes an increase to the base rate in all years -Raised commodity reclaimed rate beginning in second year -Increase potable only this year -Increase of$1.81 per month for the average customer with a 5/8 inch meter -Comparisons to other water service providers MOTION:A motion was made by Commissioner Tustison and seconded by Commissioner Milkey to forward the water rates in the Preferred Financial Scenario to the Mayor and Town Council for approval.MOTION carried,5-0. 4. DISCUSSION ON 5-YEAR CAPITAL IMPROVEMENT PROGRAM BUDGET Mr.Abraham reviewed the following: -Purpose of Capital Improvement Program(CIP) -Financing options available -Financing the current 5-year CIP -5-year CIP existing system improvement projects -5-year CIP NWRRDS and expansion related improvement projects 5. DISCUSSION AND POSSIBLE ACTION ON RENEWING AZWARN MEMBERSHIP Mr.Abraham explained AZWARN is a free statewide mutual assistance agreement between public water and wastewater utilities in Arizona.This volunteer based response network provides member utility contact information and resource listings for use in times of emergencies. MOTION:A motion was made by Commissioner Milkey and seconded by Commissioner Hollingsworth to forward the AZWARN Mutual Aid Agreement to the Mayor and Town Council for approval.MOTION carried,5-0. 6. DISCUSSION AND POSSIBLE ACTION ON RESCHEDULING THE NOVEMBER WATER UTILITY COMMISSION MEETING TO TUESDAY,NOVEMBER 12,2019 DUE TO THE VETERANS DAY HOLIDAY 01-14-19 Water Utility Commission 2 MOTION:A motion was made by Commissioner Milkey and seconded by Commissioner Tustison to reschedule the November meeting to Tuesday,November 12,2019. MOTION carried,5-0. 7. TOWN COUNCIL MEETINGS/COMMUNICATIONS Councilmember Piña reported on the following: Online survey for residents;U of A 10-year Strategic Plan has identified Oro Valley as one of the four strategic incubators;U of A selected a dean for the proposed college of veterinary medicine in Oro Valley;Town Council strategic planning initiatives for next two years is in progress and includes an economic development strategy plan;Town adopting building codes;zoning code improvements are in progress;code publishing is in progress; technical standards update is in progress;new Budget and Finance Commission Councilmember Piña announced upcoming Town Council meetings. 8. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee—No report. b. Water Resources and Conservation Subcommittee Chair Campbell reported the subcommittee will be meeting in February. 9. STAFF REPORTS a. Financial Report Ms.Kiel reported on the following budget to actual comparisons: -Revenue from potable water,reclaimed water,groundwater preservation fees and service fees -Operating expenses including personnel,administration,water resources,engineering and potable and reclaimed operations -Capital improvement projects and debt service Ms.Kiel presented the quarterly customer service metrics. b. Water Supply and Usage Report Mr.Abraham presented water production information for both the Countryside and Oro Valley water service areas as well as the groundwater target maximum levels.The statistics illustrate the full year of 2018(January-December). c. Capital Projects Report 01-14-19 Water Utility Commission 3 Mr.Jacobs reviewed the following projects: Oracle and Hardy wheeling station;High Mesa hydropneumatic tank replacement; Nakoma Sky production well;La Reserve PRV station;MAG meter wells and boosters; backflow retrofitting for fire protection systems;production facility office improvements; valve replacement program;La Cholla widening and modifications;Northwest Recharge, Recovery and Delivery System 10. DIRECTOR'S REPORT (P.Abraham) a. Upcoming Meetings Mr.Abraham reviewed the upcoming meetings. b. Water News Mr.Abraham reviewed the upper Colorado basin snowpack comparisons of the current year and last three years and averages.He reviewed the Colorado snow water equivalent map for 2019 compared to 2018. CALL TO AUDIENCE—No speakers. FUTURE AGENDA ITEMS—No items. NEXT MEETING: FEBRUARY 11,2019 LOCATION:HOPI CONFERENCE ROOM ADJOURNMENT MOTION:A motion was made by Commissioner Tustison and seconded by Commissioner Milkey to adjourn the meeting at 7:59 p.m.MOTION carried,5-0. Prepared by: Danielle Tanner 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 14th day of January,2019.I further certify that the meeting was duly called and held and that a quorum was present. 01-14-19 Water Utility Commission 4