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HomeMy WebLinkAboutMinutes - Water Finance Subcommittee - 11/6/2019 MINUTES ORO VALLEY WATER UTILITY COMMISSION FINANCE SUBCOMMITTEE REGULAR SESSION November 6,2019 WATER UTILITY CONFERENCE ROOM 11000 N.LA CANADA DRIVE REGULAR SESSION AT OR AFTER 9:30 AM CALL TO ORDER-Chair Tustison called the meeting to order at 9:34 a.m. ROLL CALL Present: Winston Tustison,Chair Chuck Hollingsworth,Member Robert Milkey,Member Staff Present: Peter A.Abraham,P.E.,Water Utility Director Shirley Kiel,Water Utility Administrator Mary Rallis,CPA,Water Utility Administrator CALL TO AUDIENCE-No speakers. REGULAR SESSION AGENDA 1. REVIEW AND APPROVAL OF THE OCTOBER 10,2019 REGULAR SESSION MEETING MINUTES Motion by Member Robert Milkey,seconded by Member Chuck Hollingsworth to approve the October 10, 2019 minutes as written. Vote:3-0 Carried 2. DISCUSSION REGARDING THE RECLAIMED COST ALLOCATION ANALYSIS AND ITS POTENTIAL IMPACT TO THE BASELINE Ms.Kiel reviewed the first draft of the analysis provided by Westland Resources.Allocation breakdowns apply to staffing,assets and facilities.She reviewed the following: -The staffing breakdown -Debt service paid by reclaimed GPF -Allocation methods specific to each budget line item -The budget line item breakdown -Asset values net of depreciation -Inflation will be applied as appropriate to each budget line item to project future years Discussion ensued amongst staff and the Subcommittee regarding the following: -Debt service allocation -Reclaimed GPF cost -GPF as it relates to the upcoming NWRRDS project -Anticipated Cost of Service study after the new year The Subcommittee provided the feedback below: -Chair Tustison and Member Milkey said they are content with the results of the allocation study -Member Milkey discussed closer review of the debt service allocation -Member Hollingsworth discussed educating the public about the rates in relation to the closure of Vistoso Golf Course Ms.Kiel explained staff will input this information into the baseline and develop a scenario. The Subcommittee plans to meet again on December 3rd at 10 a.m.to review the baseline and one additional scenario. Ms.Kiel will provide a brief update to the Water Utility Commission at their meeting next week. FUTURE AGENDA ITEMS-No items. ADJOURNMENT Motion by Member Chuck Hollingsworth,seconded by Member Robert Milkey to adjourn the meeting at 10:47 a.m. Vote:3-0 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 6th day of November,2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of November,2019. Danielle Tanner Senior Office Specialist