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Home My WebLink AboutMinutes - Water Utility Commission - 1/13/2025MINUTES WATER UTILITY COMMISSION REGULAR SESSION January 13, 2025 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER Chair Alan Forrest called the meeting to order at 5:03 p.m. ROLL CALL Present: Alan Forrest, Chair Niranjan Vescio, Vice Chair Michael Smjekal, Commissioner Tom Marek, Commissioner Greg Hitt, Commissioner Joe Hornat, Commissioner Absent: David Atler, Commissioner Staff Present:Peter A. Abraham, Water Utility Director David Allred, Water Operations Manager Lee Jacobs, Water Utility Engineering Division Manager Mary Rallis, Water Utility Administrator 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. No public speakers REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE NOVEMBER 18, 2024 REGULAR SESSION MEETING MINUTES Motion by Commissioner Greg Hitt, seconded by Vice Chair Niranjan Vescio approve with the changes discussed Vote: 4 - 0 Carried Other: Commissioner Joe Hornat (ABSTAINING) Commissioner Michael Smjekal (ABSTAINING) 1/13/2025 Water Utility Commission Regular Session 1 2.WELCOME NEW WATER UTILITY COMMISSIONERS (P. ABRAHAM) Water Utility Director Peter Abraham thanked outgoing Commissioners Olson and Lantow for their service and dedication to the Commission. Water Utility Director Peter Abraham welcomed the two new Commissioners: Joe Hornat and Michael Smejkel. Commissioners Hornat and Smejkel introduced themselves. Commissioner introductions followed. 3.NOMINATION AND ELECTION OF COMMISSION CHAIR EFFECTIVE JANUARY 14, 2025 Motion by Commissioner Greg Hitt, seconded by Commissioner Tom Marek motion to nominate Niranjan Vescio as Chair. Vote: 6 - 0 Carried 4.NOMINATION AND ELECTION OF COMMISSION VICE CHAIR EFFECTIVE JANUARY 14, 2025 Motion by Commissioner Greg Hitt, seconded by Vice Chair Niranjan Vescio to nominate Tom Marek as Vice Chair Vote: 6 - 0 Carried Water Utiltiy Director Peter Abraham thanked current Chair Alan Forrest and current Vice Chair Niranjan Vescio for their service to the Commission during 2024. 5.UPDATE AND DISCUSSION ON POSSIBLE ACTION ON THE 2025 WATER UTILITY COMMISSION WORK PLAN (P. ABRAHAM) Water Utility Director Peter Abraham reviewed the Oro Valley Water Utility Commission Work Plan for 2025. 6.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) Water Utility Engineering Division Manager Lee Jacobs provided an update on the following Water Utility CIP Projects: La Posada Production Well Steam Pump Production Well Big Wash Reservoir Rehabilitation-completed project High Mesa Booster Rehabilitation NWRRDS Partnered CMAR Project Completed NWRRDS Independent Shannon Road Reservoir and Booster Station NWRRDS Independent Transmission Main La Canada Two Zone Booster (zones F & G) NWRRDS Independent Twin Peaks Booster Station 7.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) Water Utility Administrator Mary Rallis provided a financial update through December 31. 2024 on the 1/13/2025 Water Utility Commission Regular Session 2 Water Utility Administrator Mary Rallis provided a financial update through December 31. 2024 on the following: Revenues to include: potable water sales reclaimed water sales groundwater preservation fees service fees Expenses: personnel operations and maintenance capital debt service total expenses Customer Service new meters installed customer base Waster Smart registered accounts Customer Portal 8.UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED) Water Operations Manager David Allred provided an update on the following Water Operations: 24 ADEQ certified operators Reclaimed water system Reclaimed Booster Rehab Big View Booster PLC Panel Programming Well C5 (Naranja Reservoir Site) Meter Changeout Discussion ensued amongst the Commission and Water Operations Manager David Allred. 9.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) Water Utility Director Peter Abraham provided an update on the following water resource usage through 2024: Oro Valley Main Service Area Use: Groundwater CAP Water Reclaimed Water Countryside Service Area Groundwater CAP Water Reclaimed Water Discussion ensued amongst Water Utility Director Peter Abraham and the Commission. 10.DISCUSSION AND POSSIBLE ACTION ON PROPOSED WATER RATES (P. ABRAHAM) Water Utility Director Peter Abraham presented the following information regarding the Water Utility 1/13/2025 Water Utility Commission Regular Session 3 Water Utility Director Peter Abraham presented the following information regarding the Water Utility water rates updates: Water Rate Analysis goal Rate Model Input Data Historical & projected CAP delivery & wheeling costs Historical & projected personnel & power costs by year Historical & projected O&M minus CAP delivery & wheeling & power costs Historical & estimated capital costs by year Potable water accounts by meter size Historical & estimated annual potable water use by year Historical & estimated annual CAP water use by year Historical & projected debt service schedule by year-Operating Fund Rate Model Output Data Operating revenues Operating expenses Debt service, capital, proposed rate increase and ending cash balance Graphical Interpretation Historical & projected potable rate increases by year Historical and estimated ending cash balance Recommendation on proposed potable water rates Potable water cost comparisons Recommendation on water rates for FY 25/26: Recommended base rate increase Recommended on commodity rate increase Potable water costs comparison against other water providers in the area Tentative rate schedule Recommendation Discussion ensued among the Commission and Water Utility Staff Peter Abraham and Mary Rallis. Water Utility Director Peter Abraham informed the Commission that their voice in this matter is important as the Commission serves as the citizen's advisory group for Council. Discussion ensued among the Commission and Water Utility Staff Peter Abraham regarding the information presented for the Water Rates updates. Motion by Commissioner Tom Marek, seconded by Vice Chair Niranjan Vescio for the Commission to make a recommendation to forward the water rates, as presented, to the Mayor and Council for their consideration for approval. Vote: 6 - 0 Carried 11.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY) No updates 12.DIRECTOR'S REPORT Water Utility Director Peter Abraham presented the following: Upcoming Town Council meetings and Water Utility Commission ADJOURNMENT Motion by Commissioner Greg Hitt, seconded by Vice Chair Niranjan Vescio to adjourn the meeting at 7:15 pm 1/13/2025 Water Utility Commission Regular Session 4 Vote: 6 - 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 13th day of January, 2025. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 11th day of February, 2025. ___________________________ Maritza M. Valenzuela Senior Office Specialist 1/13/2025 Water Utility Commission Regular Session 5