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HomeMy WebLinkAboutMinutes - Minutes - Citizens Utility Advisory Commission - Meeting Date: 12/5/2018^ GLENCg^E /- AGENDA CITIZENS UTILITY ADVISORY COMMISSION OASIS WATER CAMPUS 7070 NORTHERN AVE. GLENDALE, ARIZONA 85303 DECEMBER 5, 2018 6:00 P.M. CALL TO ORDER Chair Liebman called the meeting to order at 6:00 p.m. ROLL CALL Present: Chair Liebman, Vice Chair Short, and Commissioners Amber Ford, Paul Smith, Robert Gehl and Robin Berryhill were present. Absent: None Also Present: Craig Johnson, Water Services Director; Vicki Rios, Director, Budget & Finance; Kerri Logan, Administration Deputy Director - Water Services; Dan Hatch, Water Services Administrator of Financial Programs; Katrina Alberty, Administrator, Water Services; Angela Ruffalo, Management Assistant, Water Services; John Henny, System Operations Deputy Director; Ron Serio, Plant Operations Deputy Director; Megan Sheldon, Interim Deputy Director, Environmental Resources - Water Services; Drew Swieczkowski, Environmental Program Manager; Chris Young, Principal Engineer, Field Operations; Nancy Mangone, Assistant City Attorney CITIZEN COMMENTS If citizens wish to speak on a matter concerning the Citizens Utility Advisory Commission that is not on the printed agenda, please complete a yellow Citizen Comments Card. If citizens wish to speak on a matter that is on the agenda, please complete a green Citizen Comments Card. Provide the card(s) to the designated staff person prior to the beginning of the meeting. Once your name is called by the Chairperson, please proceed to the podium and state your name and address for the record. Please limit your comments to three minutes or less for items not on the agenda and five minutes or less for items on the agenda. No comments. APPROVAL OF THE MINUTES a. Citizen Utility Advisory Commission Minutes of November 7, 2018. Motion by Commissioner Gehl, second by Commissioner Ford, to approve the November 7, 2018 meeting minutes as written. Motion carried 6-0. 5. DIRECTOR'S REPORT a. This report allows the Directors' of Field Operations and/or Water Services to update the Commission. The Commission is prohibited from discussing or acting on any of the items presented by the Staff since they are not itemized on the Citizen's Utility Advisory Commission Agenda. Update presented by: Craig Johnson, P.E., Director, Water Services Mr. Craig Johnson, Water Services Director, announced that there was no report this evening. 6. Drought Update Presented by: Drew Swieczkowski, Environmental Program Manager and Megan Sheldon, Interim Deputy Director, Environmental Resources Mr. Swieczkowski gave an update on the Lower Basin Drought Contingency Plan (LBDCP), which included the following: . LBDCP - Update for December 2018 .The 41-member LBDCP Steering Committee has held seven meetings since July 2018. . The Arizona Municipal Water Users Association (AMWUA) has been actively supporting our municipal sector along with Phoenix, Scottsdale, and Goodyear. . A new LBDCP framework was presented at the November 29th Steering Committee meeting. . It is anticipated that the plan will be finalized by the end of this December. .A CAP Board meeting will be held on December 6, 2018. . The goal of the LBDCP is to prop up Lake Mead water levels. . Current Status of LBDCP - The latest plan addresses the main concerns of the LBDCP: . Final Agriculture mitigation: gives three years of mitigation water and funding to build up ground water infrastructure. . Mitigation of Non-lndian Agriculture water for seven years. . Protection for Lake Mead. . Respects and follows priority system. .CostoftheLBDCP . Funds will be needed for Ag and NIA mitigation water, Intentionally Created Surplus (ICS) water (to replace any that will be taken out of Lake Mead), and for ground water infrastructure. . It is thought that money (roughly $100 million) will come from: . The State - $30 million . Federal Government . Non-Governmental Organizations . Fixed OM&R . There is no firm estimate of what this will do to our CAP rates (except that they will go up). . Next Steps for LBDCP - Needed Steps for the LBDCP to be finalized: Complete the Arizona Steering Committee Process (end of December) . Basin States to finalize agreement documents .Arizona Department of Water Resources Director is authorized by Arizona legislation to agree to the LDBCP agreements .All parties obtain appropriate authorizations . Federal legislation directing the Secretary to implement LBDCP Mr. Swieczkowski indicated that if all continues to trend the same, a Tier 1 Shortage will most likely go into effect on January 1 ,2020. Chair Liebman inquired if the City of Glendale will help pay for the cost of the LBDCP. Mr. Swieczkowski replied in the negative and noted that federal, state, and other funds would be used. Mr. Swieczkowski stated that the cost $247 per acre-foot. Chair Liebman wondered how this related to Glendale residents. Mr. Swieczkowski explained that the 2019 CAP cost is $198 acre-foot and it will be $247 acre-foot for CAP water in the first tier of shortage. Mr. Johnson noted that the $198 acre-foot is less than the City is paying now, however, the cost increase will factor into how the City's water rates will be set. Chair Liebman wondered what type of rate increase is anticipated. Ms. Rios replied that staff does not have that figure at this time and would provide it to the Commission once developed. Chair Liebman asked when the LBDCP would be voted on. Mr. Swieczkowski stated that the issue would be up for review in the January legislative session and there will most likely be some debate. Chair Liebman wondered when a prudent time would be for another drought update. Mr. Johnson relayed that the next drought update is currently scheduled for March 2019. Mr. Johnson explained that he would like to the take the matter to Council workshop in February 2019 to provide an update and will then bring it back to the Commission. Chair Liebman wondered if that would allow an opportunity to advise Council. Mr. Johnson noted that the timing depends on how the matter goes to the legislature and indicated that the matter could be brought to the Commission as a briefing prior to Council. Chair Liebman stressed that he would like for the Commission to have the opportunity to provide feedback and to advise Council prior to their workshop. Mr. Johnson acknowledged the request. Vice Chair Short asked if California has been more cooperative with the other states. Mr. Swieczkowski replied in the positive and noted that California is giving up water in 2045 with this proposed plan. Mr. Swieczkowski added that California is working on water conservation as well. Vice Chair Short inquired if the Upper Basin was being cooperative. Mr. Swieczkowski explained that the Upper Basin states are working on their own plan to keep Lake Powell water levels up. Vice Chair Short inquired as to the water level at which the federal government will intervene. Mr. Swieczkowski stated that the federal government can step in at any time, however, the 2007 guidelines indicate 1,025 feet. Mr. Johnson commented that Mr. Swieczkowski will bring updated water level charts to the Commission for the next drought update. Commissioner Gehl asked if the drought plan would be on the national news. Mr. Swieczkowski stated that there are a lot of efforts on managing and messaging and the regional group is looking at messaging as a combined effort. Commissioner Gehl inquired about the federal government and wondered if the federal actions would be administrative in nature. Mr. Swieczkowski stated that the Bureau of Reclamation steps in according to the 2007 guidelines and believed it was administrative action. Commissioner Berryhill wondered about the worst water levels in the past. Mr. Swieczkowski replied that current levels are historic lows as there is more water going out than going in. Mr. Swieczkowski commented on poor snow pack. Mr. Swieczkowski stated that this is a new reality which needs to be dealt with long term. Commissioner Berryhill attributed much to the population growth as well. Commissioner Berryhill inquired about programs such as Direct Potable Re-Use. Mr. Swieczkowski replied that conservation efforts are on-going and the focus must be on how to use what we have more efficiently. Commissioner Berryhill asked if the 41-member Steering Committee would remain the same after this plan and Mr. Swieczkowski replied that the members would essentially remain the same. Mr. Swieczkowski explained that the LBDCP is only in effect for six to seven years and after that the 2007 guidelines will have to be revised, which is an immense project. Chair Liebman inquired as to how the Salt River Project were planning for drought. Mr. Swieczkowski relayed that SRP operates on an 11-year planning window and explained in general how they allocate water and use reservoirs and groundwater. Chair Liebman wondered how private water companies were managing in relation to the plan. Mr. Swieczkowski relayed that EPCOR, in Final County, is involved in the discussions and they are part of the plan to keep water in Lake Mead. As there were no more questions, Chair Liebman thanked Mr. Swieczkowski for the update. 2019 Water Services Rate Study Presented by: Vicki Rios, Director, City of Glendale Budget & Finance and Dan Hatch, Administrator, Water Services Financial Programs Ms. Rios gave an update on the Rate Schedule, which included the following: . Rate Schedule Approved October 2017 . Financial Plan (Option 3) Highlights . Approved increase for January 2018 and January 201 9 . Cost of Service adjustments between customer classes . Capital Improvement Plan reduced . Draw down fund balance for capital funding . Issue bonds for remaining capital funding . Level increases of 6.5% for Water and 5.5% for Sewer . FY2019 Financial 5-Year Forecast . Present to Council on December 11, 2018 . FY2019 Operating & Capital Improvement Plan . Items to be Included in Review . Update cost for operating and capital budgets . Propose contribution to family assistance program . Eliminate cross-connection and pre-treatment fees (not cost-effective) . Update urban irrigation revenue requirements . Change apartment customers to residential class . Colorado River Supply Resiliency Program . Commission Suggestions . Calendar of Review and Council Approval . January 2019 CUAC: Present preliminary CIP, Operating Budget, and supplementals . February 2019 CUAC: Present results of rate review . March 2019: Council workshop for rate review . May - June 2019: Council approves budgets . June 2019: Council approves rates . January 2020 and 2021 : Rates are effectiven irrigation revenue requirements . Change apartment customers to residential class Ms. Rios announced that staff will run the rate and budget process together so that Council can see how the rates impact the budget. Ms. Rios added that Council may want more public outreach as well and if so, staff may try different methods to reach residents. Chair Liebman thought that the public outreach that staff had conducted regarding the rate increase was effective. Commissioner Berryhill inquired about urban irrigation revenue recovery. Mr. Johnson relayed that the last report revealed 29% recovery for urban irrigation and more information will be brought to the Commission on this at an upcoming meeting. Mr. Johnson shared that staff has not received any complaints about the urban irrigation, nor any water in the street. Ms. Rios noted that details will be included in a presentation to the Commission in January or February Commissioner Berryhill inquired if the item will be agendized separately as Urban Irrigation and Mr. Johnson replied in the positive. Commissioner Gehl asked if the public was aware that rates would be raised again. Ms. Rios explained that during the last rate increase, the public was informed that for at least five years, there would be a rate increase and the increases would be adopted for two years and then would be done again in another two years. Vice Chair Short commented that he is President of a large HOA and the increased water costs are devastating to the HOA budget. Vice Chair Short noted that the HOA is considering removing grass, which has been its hallmark. Vice Chair Short asked if staff could review the classifications and requested more leniency on the sprinkler classifications. Commissioner Smith commented that he prefers smaller increases every year instead of one large increase at once, as this is easier for people to tolerate in their budgets. Ms. Rios noted that this was the feedback that was received last year from Council and citizens. Chair Liebman asked if staff has considered an impact from any future economic downturn on the rates and CIP. Ms. Rios replied that this has not been specifically reviewed, however, staff is very conservative with planning so that weathering a short-term downturn is foreseeable. Ms. Rios noted that a downturn such as in 2009, could result in cutbacks and delays on projects. Chair Liebman mentioned various comments made by Councilmembers during the last Council vote on the rate increase and recommended that staff review those comments in preparation for the Council workshop in March. Chair Liebman thanked staff for the presentation. 8. CUAC 2019 Proposed Agenda Items Calendar Presented by: Kerri Logan, Administration Deputy Director, Water Services Ms. Logan and Mr. Young presented the CUAC 2019 Proposed Agenda Topics. The Commissioners reviewed the draft of the topics. Vice Chair Short requested inclusion of an update on the Balanced Scorecard and a presentation on the FY19-20 Budget for CUAC review and input. Commissioner Berryhill requested information on ways to conserve water, such as the City of E! Paso's Toilet to Tap Program or the increase use of reclaimed water. Chair Liebman commented that a report on the El Paso program, such as needed capital, labor, re-plumbing and filtering costs would be necessary. Commissioner Berryhill added that potential federal grants should be also included in a review. Mr. Johnson shared that one of the Master Plan consultants was involved in the Direct Potable Re-Use program in El Paso and he will speak with the consultant regarding the program. Mr. Johnson added that ADEQ has approved the use and permitting of direct to potable just last year. Mr. Johnson stated that a conversation and research can be had on direct to potable, however, the City does not have a re-use policy, the City's effluent infrastructure is limited, and even when the City can get it to specific sites, the user will have to store the water in the ground or in a tank. Motion by Vice Chair Short, second by Commissioner Smith, to approve the following 2019 CUAC Proposed Agenda Topics: January: Rate Study Update, Proposed FY2019-20 Budget February: Rate Review Study March: Drought Update, City of Glendale Drought Management Plan 10. 11 12. April: May: June: July: August: September: October: Scorecard* November: December: tentatively Materials Recovery Facility* Current Fiscal Year Financial Update No Meeting No Meeting Blue Barrel Follow-Up* Drought UpdateA/Vater Services CIP Project Updates Overview and Understanding of Direct Potable Re-Use, Balanced Current Fiscal Year Financial Update Drought Update Scheduled and Subject to Change Motion carried 6-0. COMMISSIONER COMMENTS AND SUGGESTIONS Chair Liebman shared that he recently removed 1,200 square feet of grass in his front yard and installed desert landscaping. Chair Liebman noted that his water bill went down 25%-30% and highly recommended others doing the same. Mr. Johnson reminded Chair Liebman to apply for the City rebate. Chair Liebman announced that the City of Phoenix is implementing a water rate increase in 2019 for two years. Commissioner Ford stated that she was not present at the meeting at which urban irrigation was discussed and appreciated any refresher on the topic. Mr. Johnson will send the Commissioners the approved resolution and the report that staff sent to Council in April 2018. Mr. Johnson stated that if the Commissioners would like additional information, to send a request to Ms. Logan who will follow up. FUTURE AGENDA ITEMS Commissioners may suggest items for placement on future meeting agendas. Previously discussed in Agenda Item 8. NEXT MEETING The next regular meeting of the Citizens Utility Advisory Commission will be held on January 2, 2019 at 6:00 p.m., at the Oasis Water Campus, 7070 W. Northern Ave., Glendale, Arizona, 85303. ADJOURNMENT Motion by Commissioner Gehl, second by Commissioner Ford, to adjourn the meeting at 7:41 p.m. Motion carried 6-0. Respectfully submitted, Denise Kazmierczak SPECIAL ACCOMMODATIONS For special accommodations, please contact Angela Ruffalo at (623) 930-4116 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 [\r)^sLf <£>2_^^cer