HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 9/23/2019 MINUTES
ORO VALLEY WATER UTILITY COMMISSION
FINANCE SUBCOMMITTEE
REGULAR SESSION
September 23,2019
WATER UTILITY CONFERENCE ROOM
11000 N.LA CANADA DRIVE
REGULAR SESSION AT OR AFTER 9:00 AM
CALL TO ORDER-Chair Tustison called the meeting to order at 9:00 a.m.
ROLL CALL
Present: Robert Milkey,Member
Winston Tustison,Chair
Absent: Chuck Holligsworth,Member
Staff Present: Peter A.Abraham,P.E.,Water Utility Director
Shirley Kiel,Water Utility Administrator
Danielle Tanner,Senior Office Specialist
CALL TO AUDIENCE-No speakers.
REGULAR SESSION AGENDA
1. REVIEW AND APPROVAL OF THE FEBRUARY 8,2019 REGULAR SESSION MEETING MINUTES
Motion by Member Robert Milkey,seconded by Chair Winston Tustison to approve the February 8,2019
meeting minutes as written.
Vote:2-0 Carried
2. DISCUSSION REGARDING THE 2020 WATER RATES ANALYSIS,INCLUDING BASELINE SCENARIO
AND INITIAL ASSUMPTIONS
Ms.Tanner reviewed the initial assumptions in the Baseline.
Ms.Kiel reviewed the following:
-Revised CIP based on 2018 Master Plan and updated Northwest Recharge,Recovery and Delivery
System(NWRRDS)project costs
-Revised reclaimed water allocation based on 18/19 actuals.The new allocation is 19%.
-Last year the analysis included a reduction in the volume of reclaimed water delivered due to the loss of
Vistoso Golf Course and this year that amount was changed to zero
-Impact Fee Analysis underway and will impct the financial analysis
-NWRRDS project capital update reflects an increase in operational costs in year 5 and a corresponding
reduction in wheeling costs to Tucson Water
Mr.Abraham discussed the NWRRDS capital cost increases and the current unknown factors.
Discussion ensued amongst Members and staff regarding Item 2.
3. DISCUSSION REGARDING A MODIFIED COST OF SERVICE STUDY
Ms.Kiel reviewed the following:
-Reduction in reclaimed water sales
-A drop off in reclaimed debt service in future years-debt paid in full in 7/1/28
-Modified Cost of Service Study for the reclaimed system is in progress
Mr.Abraham discussed potential changes to the GPF fee.
Discussion ensued amongst the Members and staff regarding Item 3.
FUTURE AGENDA ITEMS
The next meeting is proposed for Thursday,October 10th at 10 a.m.A baseline and possibly another scenario will
be provided at that time.
ADJOURNMENT
Motion by Chair Winston Tustison,seconded by Member Robert Milkey to adjourn the meeting at 10:02
a.m.
Vote:2-0 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 Finance Subcommittee of Oro Valley,Arizona held on the 23rd day of September,2019. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 23rd day of September,2019.
Danielle Tanner
Senior Office Specialist