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Home My WebLink AboutMinutes - Minutes - Water Services Advisory Commission - Meeting Date: 5/7/2014 %heti Water Services Advisory I •GLENP Commission Oasis Water Campus 7070 W.Northern Avenue May 7,2014 6:00 P.M. FINAL MINUTES I. CALL TO ORDER—6:02 p.m. II. ROLL CALL: Present- Commissioners Robert Gehl, Paul Romanek, John Sipple, Vice- chair Jonathan Liebman, and Chair Ron Short Absent: Commissioners Roger Schwierjohn and Ruth Faulls Staff: Craig Johnson, Javier Setovich, John Henny, Mark Fortkamp, Doug Kupel, Dan Hatch, Tom Gill, Kerri Logan, Thomas Relucio, Hayme Amaya, and Sally Melling III. APPROVAL OF MINUTES OF APRIL 2, 2014 —Motion made by Comm. Romanek and seconded by Comm. Sipple to approve the corrected minutes. Voice approval was unanimous. Action: APPROVED 5-0 IV. EXECUTIVE DIRECTOR'S REPORT — Craig Johnson, P.E., Executive Director, Update on Public Participation for Urban Irrigation • Public meeting information to be presented at September 3, 2014 WSAC meeting o Public information meeting dates o Draft on Public Participation Plan with location and schedule • New staff member, Dan Hatch, was introduced o Action: No action taken,information only V. CALL TO THE AUDIENCE — Chair Ron Short reviewed the opportunity for audience members of the public to address the Water Services Advisory Commission. One person spoke on a non-agenda item. John Geurs - would suggest the city function as a business would to get new customers by advertising, wants to encourage Commission to urge city to do an all-out blitz to sign up new irrigation customers. This would increase revenue to the city from irrigation. On his street of 15 houses, only two are receiving irrigation. Robin Berryhill — Asked if notices be sent to all property owners and users on irrigation meetings. Asked who owns system. Ordinance 27 gave it to city. Ordinance 588 spelled out what items property owners are to pay for. Addressed contract with Salt River Irrigation and notification of leaks to city. Stated several leaks are on-going especially in City of Glendale Water Services Department•7070 West Northern Avenue•Glendale,AZ 85303•(623)930-4100 May 7, 2014 Water Services Advisory Commission Final Minutes Page 2 Catlin Court. Requested clarification on several SRI charges. Stated citizen participation needs to be increased. VI. LETTER FROM GOVERNMENT SERVICES COMMITTEE Explanatory information presented by Kerri Logan, Water Services Administrator Action: No action required,information only VII. CAP RATE MEETING UPDATE — PRESENTATION Information was provided by Doug Kupel, Interim Deputy Director CAP raw water 2016 increase is projected to be 3% Two year financial planning mark; Rates, Budget, and provisions for mid-year updates Cost components of CAP water CAP currently selling power at a loss; raised rates sharply in 2013 & 2014 & transferred $45M from water storage reserve fund to operating reserve fund Special assessment to reconcile rates with full cost of services-CAP board of directors could ask customers to make up any shortages Special fund of$2M could be established, equates to surcharge of$12/ac. ft. Farmers might be paid not to take water to save water Arizona allotted 2.8 million acre feet; majority used along the Colorado River (agriculture); Glendale's water portfolio explained Differences and restrictions on SRP vs. CAP water use and priorities Water rights, sales, future rights, leases, and exchanges explained as sources of water (almost 25,000 acre feet available) Calendar year 2014 CAP budgeted charges information presented; rates increased 31% over 3 years (2012-15) Projections shown into year 2020 Water supply appears stable for 2016; possible water shortage in 2017, over 50% chance Commission questions: Several questions asked on CAP water Percentage of water average: CAP 35%; SRP 50% Use it or lose it if ordered? Not completely lost,returned for credits What about$2M surcharge? Not yet established, could be implemented in 2017 Does CAP board go before Corporation Commission? No, they are an independent elected body and set their own rates Several questions asked on water purchased or leased from Indian nations Is pumping SRP water up to boundary more cost effective than using well water? Trying to preserve the ground water(from a Water Resources standpoint.) Cheapest water to treat is ground water, then CAP water, and most expensive is SRP water. What are rates forecast beyond 2015? Not calculated yet. Impact could possibly be nominal if 3% increase set. Is 50% chance of shortage a high number? Yes, actually 55%. Lake Mead is approaching a "trigger point". Lake Mead level could get as low as 1,000 feet or below in the next 6-8 years and will impact the intake to Las Vegas from Lake Mead. Action: No action required,information only May 7, 2014 Water Services Advisory Commission Final Minutes Page 3 One speaker card submitted, one person spoke. Robin Berryhill - comments on "Follow Your Money" raw water charges vs. SRP charges as it concerns irrigation when water is blended. Requests Glendale establish two water rates, one for SRP water users and one for CAP water users, since CAP water is more expensive. Stated everyone chooses where they live and she chose to live in downtown Glendale with SRP water delivery. VIII. SERVICE LINE WARRANTY UPDATE — Additional information was presented by John Henny, Deputy Director Three companies approached city; no one vendor favored Marketing partnership opportunity City logo to be used on company's advertising items to endorse warranty product Procurement process would be required with RFP or RFQ issued Exclusive vs. Non-exclusive agreements Possible warranty monthly cost per customer: Water$3.99-$5.99 and Sewer$6.99-$8.99 Possible revenue opportunities-$40,000 to $80,000 in one time revenue, with annual fee of$.50-$.60 per month per paid warranty customer Projected possible city revenue-$50,000 to $60,000 (with 10-15% user rate) in the first three years; bonus payments if penetration rates meet vendor's goals City responsibility-provide logo, provide customer billing information, signature of a city official, approval marketing items, assist vendor to make best possible marketing campaign Calls to city could increase Vendor marketing information would look as if issued by city Commission questions: • Where would revenue go to, General or Enterprise Fund? Cities currently with warranty providers use the funds in their General Fund. City of Glendale would decide where funds are used. • Several questions on contract specifics: terms, underwriters, possibility of liability, negotiations, criteria, method of bidding and actual costs to taxpayers, benefits of exclusive vs. non-exclusive contracts. • Have any city mayors actually signed the vendor marketing letter for the cities that are using a warranty program? Not aware of any mayors signing. Signature sought for letter is usually a city manager or department head. • What option is being sought from Commission? Any direction is requested. Comm. Gehl does not like the concept, feels it diminishes city, and does not wish to proceed. Comm. Romanek reiterated information that his homeowner's insurance policy provides this option already. Fears customers could pay twice if they did not investigate their homeowner's insurance. Feels the overall marketing campaign is to deceive customers into thinking it is a city-offered service and feels vendors are doing everything possible to make it appear so. He concurs with Comm. Gehl. May 7, 2014 Water Services Advisory Commission Final Minutes Page 4 Motion to proceed with the Warranty Program made by Comm. Romanek, seconded by Comm. Gehl. Voice poll - Aye: None. Nay: Commissioners Robert Gehl, Paul Romanek, John Sipple, and Chair Ron Short; with Vice-chair Jonathan Liebman abstaining Action: Motion FAILED 0-4-1 IX. REQUEST TO VACATE JULY AND AUGUST MEETINGS - Requested by Chair Short Chairman Short informed the Commission the City Council recesses during July and the early part of August. Chairman Short feels the Commission also recessing at the same time will allow staff to better prepare the September agenda and handouts. Motion made by Comm. Gehl, seconded by Comm. Sipple. Action: APPROVED 5-0 X. CALL FOR FUTURE AGENDA ITEMS FY 2015 Budget information Comm. Romanek requested FY 2011/12 Budget documents for comparison to FY 13/14 XI. NEXT MEETING: June 4, 2014, 6 p.m. XII. ADJOURNMENT — Motion to adjourn - Comm. Romanek, seconded by Vice-Chair Liebman. Action: Approved by voice vote. The meeting adjourned at 7:33 p.m. Respectfully submitted, Sally-elling, Recordlhg Secretary