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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 11/7/2018LTENCgU; y- AGENDA CITIZENS UTILITY ADVISORY COMMISSION OASIS WATER CAMPUS 7070 NORTHERN AVE. GLENDALE, ARIZONA 85303 NOVEMBER 7, 2018 6:00 P.M. 1 CALL TO ORDER Chair Liebman called the meeting to order at 6:00 p.m. 2. ROLL CALL Present: Chair Liebman, Vice Chair Short and Commissioners Amber Ford, Paul Smith, and Robert Gehl. Commissioner Robin Berryhill arrived after roll call. Absent: None Also Present: Ms. Michelle Woytenko, Field Operations Director; Craig Johnson, Water Services Director; Megan Sheldon, Environmental Program Manager, Water Services; Vicki Rios, Director, Budget & Finance; Kerri Logan, Water Services Deputy Director; Dan Hatch, Water Services Administrator of Financial Programs; Amanda McKeever, Water Services Administrator; Katrina Alberty, Administrator, Water Services; Angela Ruffalo, Management Assistant, Water Services; John Henny, System Operations Deputy Director, Water Services; Ron Serio, Plant Operations Deputy Director, Water Services 3. CITIZEN COMMENTS No comments. 4 APPROVAL OF THE MINUTES Motion by Vice Chair Short, second by Commissioner Smith, to approve the October 3, 2018 meeting minutes as written. Motion carried 5-0. [Commissioner Berryhill was not yet present.] a. Citizen Utility Advisory Commission Minutes of October 3, 201 8. 5. DIRECTOR'S REPORT a. Mr. Craig Johnson, Water Services Director, reported the following- . The Water Services Department received the Crescordia 2018 Environmental Excellence Award from Arizona Forward/SRP for the Glendale Desert Food Forest. The Desert Food Forest is a one-of-a-kind project at the Glendale Main Library, which introduces visitors to 100 water-wise edible plants and how they can be utilized. The department is very proud of the award. Ms. Michelle Woytenko, Field Operations Director, reported the following: . Blue Barrel Pilot Program update on final results: . Marshall Ranch . Pre-Blue Barrel: . Post-Blue Barrel: . Manistee Ranch . Pre-Blue Barrel: . Post-Blue Barrel: 23.0% Contamination 12.7% Contamination 41.0% Contamination 15.0% Contamination . The results were very good news. . Staff will review the cost benefits of the program and will put the issue on an upcoming agenda for further discussion. 6. FINANCIAL UPDATE 1. Water Services Update: Mr. Johnson introduced Ms. Rios and Mr. Hatch who gave a presentation on the Water Services Department Financial Update. Mr. Hatch's presentation included the following: . Water Services .Actual Year-ended June 30, 2018 . FY2019 Adopted Operating Budget . Capital Improvement Plan . Bonds and Debt Service . FY2018 and FY2018 Revenue (chart) . Total FY2018 revenue was favorable to FY2018 budget by $11.7 million. . The revenue increase was attributed to the rate increase, below normal rainfall, and sate of land to Top Golf for $5.7 million . FY2017 and FY2018 Expenses (chart) . FY2019 Adopted Budget (chart) .Adopted by Council on June 12,2018 . FY2019 Operating Budget (chart) .Total =$54.9 million . Capital Improvement Plan - FY2019 5-Year Cash Flow (chart) Ms. Rios' presentation included the following: . Bonds and Debt Service . Overview of Water and Sewer Revenue Bonds . Debt Policy . The City has a formal debt policy. . Uses for Debt . The City issues bonds for major capital projects for which the City either does not have the cash or for the current users to pay for the facility over time. . Debt is not issued for items that do not last more than 20 years. . Debt Issuance Process . Preliminary Offer Statement - includes the use of the bond and the City's capacity to repay the bond. . Bond Ratings . Rating agency metrics . Continuing disclosure . Current Ratings: . Water and Sewer Bonds: AA S&P and A1 Moody's . General Obligation Bonds: A+ S&P and A1 Moody's . Outstanding Bonds - Principal Balance, Interest, and Payoff Date was provided. . Series 2010 BAB's . Series 2012 Refunding . Series 2015 Refunding . Notable Projects - Bond Principal, Interest, and Payoff Date was provided. .Arrowhead Waste Water Reclamation Facility . Cholla Water Treatment Plant . Oasis Water Treatment Plant . Pyramid Peak Water Treatment Plant . West Area Waste Water Reclamation Facility . 91st Avenue Waste Water Treatment Plant Water and Sewer Bonds Annual Debt Service . Principal and Interest graph from FY2018 through FY2030 Chair Liebman inquired as to how many bonds are in a series. Ms. Rios stated that bonds are sold in $5,000 increments, so a series can be comprised of thousands of bonds. Commissioner Berryhill asked for information as to why the original bonds were issued. Ms. Rios replied that could obtain information on the specific projects. Ms. Rios stated that when a series of bonds is issued, it is not frequently for one item, but rather multiple projects. Ms. Rios provided information regarding the complex bonding process. Chair Liebman asked if staff surmised that bonds would need to be issued in the future. Mr. Hatch replied that staff is reviewing the CIP list and projected revenue to create a new financial pro-forma for future needs. Ms. Rios stated that the pro-forma will be updated and the interest environment will be considered. Ms. Rios noted that the changing financial environment is the reason that the rate increase is only adopted for a two-year period. Commissioner Ford asked if the bonds and budget are public information. Ms. Rios replied in the positive and noted that the official statements are on permanent record at the City Clerk's Office and in staff's office as well. Commissioner Berryhill commented that the 10-Year CIP report received from staff this evening provides the information she requested regarding project details and costs. Vice Chair Short asked if the same financial advisors were used for Water and Sewer Bonds and General Obligation Bonds and Ms. Rios replied in the negative. Ms. Rios stated that staff is very satisfied with RBC, who specializes in municipal and government bonds. 2. Field Operations Update Ms. Woytenko presented the Solid Waste Fund Five-year Financial Forecast FY19 through FY28 with FY18 Comparative Date and the Capital Expense Forecast FY19-28: . FY18 Revenue was above budget. . In FY19, two additional staff equipment operator positions were approved. Last year, this staff need was handled via overtime. . Great strides are being made in upgrading the fleet. Newer vehicles need less maintenance. Vice Chair Short wondered if the Field Operations campus renovation could be sped up with a bond, as the facilities have been inadequate for some time. Ms. Woytenko commented that the Field Operations Master Plan needs to be finalized first. Vice Chair Short wondered when the Master Plan would be completed. Ms. Woytenko relayed that staff made the first Council workshop presentation in September/October and will present the final Master Plan to Council at an upcoming workshop. Ms. Woytenko noted that a determination needs to be made if the Lazy J piece is included in the campus. Ms. Rios added that the timing ofwhaVwhen each department can afford needs to be considered. Ms. Woytenko agreed that all of the department contributors must be able to afford their portion of the project. Chair Liebman asked if staff could review the Master Plan with the Commission and Ms. Woytenko replied in the positive. COMMISSIONER COMMENTS AND SUGGESTIONS Commissioner Ford thanked staff for their presentations and looked forward to follow-up information. Commissioner Berryhill also thanked staff for their presentations. FUTURE AGENDA ITEMS December 2018: . 2019 Water Services Financial Rate Study .Agenda Topics for 2019 - Monthly Schedule Chair Liebman requested that financial updates be included on the 2019 agendas for May and November, as was done for 2018. 9. NEXT MEETING The next regular meeting of the Citizens Utility Advisory Commission will be held on December 5, 2018 at 6:00 p.m., at the Oasis Water Campus, 7070 W Northern Ave., Glendale, Arizona, 85303. 10. ADJOURNMENT Motion by Vice Chair Short, second by Commissioner Berryhill, to adjourn the meeting at 7:20 p.m. Motion carried 6-0. Minutes Respectfully submitted, Denise Kazmierczak Recording Secretary SPECIAL ACCOMMODATIONS For special accommodations, please contact Miriam O'Neal at (623) 930-4103 at least three (3) business days prior to the meeting. Hearing impaired persons may use the Arizona Relay Service by dialing 711. Pursuant to A.R.S. 38-431 (4), one or more members of the Citizens Utility Advisory Commission may be unable to attend the meeting in person and may participate telephonically ^42^J)^=t ^ O^O^y^OV&.c