HomeMy WebLinkAboutMinutes - Water Utility Commission - 2/15/2022MINUTES
WATER UTILITY COMMISSION
SPECIAL SESSION
FEBRUARY 15, 2022
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
SPECIAL SESSION AT OR AFTER 5:00 PM - Chair Marek called the meeting to order at 5:00 p.m.
CALL TO ORDER
ROLL CALL
Present: Tom Marek, Chair
Greg Hitt, Vice Chair
Chuck Hollingsworth, Commissioner
Byron McMillan, Commissioner
Robert Milkey, Commissioner
Staff Present:Peter A. Abraham, P.E., Water Utility Director
Lee Jacobs, P.E., C.P.M., Water Utility Engineering Manager
David E. Allred, Water Operations Manager
Mary Rallis, CPA, Water Utility Administrator
Attendees: Councilmember Bohen, Town Council Liaison
Dan Jackson, Vice President, Willdan Financial Services
CALL TO AUDIENCE - No speakers.
SPECIAL SESSION AGENDA
1.REVIEW AND APPROVAL OF THE JANUARY 10, 2022 REGULAR SESSION MEETING MINUTES
Motion by Commissioner Robert Milkey, seconded by Vice Chair Greg Hitt to approve the January 10,
2022 meeting minutes as written.
Vote: 5 - 0 Carried
2.DISCUSSION AND POSSIBLE ACTION REGARDING WATER RATES - PRESENTED BY WILLDAN
CONSULTING
Water Utility Director Peter Abraham introduced Item #2 and Mr. Dan Jackson, Vice President of
Willdan Financial Services.
Mr. Jackson provided a presentation which included the following:
- Presentation contents
- Facts about water rates in the 21st century
- Current water rate structure - July 2021
02/15/22 Minutes, Water Utility Commission Special Session 1
- Historical rate increases
- Monthly residential charge comparison - 7,000 gallons of water
- Potable water accounts by rate class - test year 2022
- Actual and forecast potable water accounts
- Average monthly water consumption by rate class - test year 2022
- Actual and forecast potable water billed consumption
- Key assumptions driving forecast, financial and rate plan
- Capital Improvement Plan: FY 2022 - FY 2026
- Long-term financing forecast water bond issues
- Forecast cost of service and net revenue requirement
- Notes on rate proposal - potable water rates
- Water rate plan - potable water rates FY 2023 - FY 2027 - Scenario A
- Rate plan - impact on monthly bills for FY 2023-FY 2027 - Scenario A
- Forecast operating and GPF cash balances - Scenario A
- Forecast GPF cash balances - Scenarios A, B, and C
- Rate plan - impact on monthly bills FY 2023-FY 2027 - Scenario B
- Forecast operating and GPF cash balances - Scenario B
- Rate plan - impact on monthly bills for FY 2023-FY 2027 - Scenario C
- Rate plan - impact on monthly bills FY 2023-FY 2027 - Scenarios A, B, and C
- Forecast operating and GPF cash balances - Scenario C
- Presentation summary - Why is rate plan beneficial to Oro Valley?
Water Utility Director Peter Abraham provided a presentation which included the following:
- Other water rates and fees (no change recommended)
- Schedule
Discussion ensued amongst the Commission, staff and the consultant regarding Item #2.
Motion by Commissioner Robert Milkey, seconded by Commissioner Chuck Hollingsworth to
recommend Water Rate Scenario C (also recommended by the Finance Subcommittee) to the Town
Council for consideration of approval.
Vote: 5 - 0 Carried
3.DISCUSSION REGARDING WATER UTILITY ANNUAL REPORT
Water Utility Director Peter Abraham provided a presentation which included the following:
- Outline
- Contents
- Schedule
4.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE
Water Utility Director Peter Abraham presented the water production information for the Oro Valley and
Countryside service areas. The statistics illustrate data from January through December 2021.
5.TOWN COUNCIL MEETINGS/COMMUNICATIONS
Councilmember Bohen spoke about the Town Council agenda item relating to revitalization of the Oro
Valley Marketplace.
6.SUBCOMMITTEE/COMMISSIONER REPORTS
02/15/22 Minutes, Water Utility Commission Special Session 2
A.FINANCE SUBCOMMITTEE - Chair Marek reported the Subcommittee met twice to review and discuss
the water rates analysis.
B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report.
7.DIRECTOR'S REPORT
Water Utility Director Peter Abraham reported on the following:
- Upcoming meetings
- Water News - Upper Colorado Basin Snowpack Comparisons
- Water News - 2022 Colorado Snow Water Equivalent
CALL TO AUDIENCE - No speakers.
FUTURE AGENDA ITEMS - No items discussed.
ADJOURNMENT
Motion by Vice Chair Greg Hitt, seconded by Commissioner Robert Milkey to adjourn the meeting at
6:06 p.m.
Vote: 5 - 0 Carried
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special session of the
Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 15th day of February 2022. I further
certify that the meeting was duly called and held and that a quorum was present.
___________________________
Danielle Tanner
Senior Office Specialist
02/15/22 Minutes, Water Utility Commission Special Session 3