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Home My WebLink About5-9-22 WUC Packet AGENDA WATER UTILITY COMMISSION REGULAR SESSION MAY 9, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL 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. SPECIAL SESSION AGENDA 1.REVIEW AND APPROVAL OF THE MARCH 21, 2022 SPECIAL SESSION MEETING MINUTES AND MAY 3, 2022 STUDY SESSION MEETING MINUTES 2.APPOINTMENT TO THE WATER RESOURCES AND CONSERVATION SUBCOMMITTEE 3.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) 4.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) 5.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE AND THE COLORADO RIVER (P. ABRAHAM) 6.UPDATE AND DISCUSSION ON THE NORTHWEST RECHARGE, RECOVERY AND DELIVERY SYSTEM (P. ABRAHAM) 7.DISCUSSION AND POSSIBLE ACTION ON CANCELLATION OF JUNE AND JULY WATER UTILITY COMMISSION MEETINGS 8.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) 9.SUBCOMMITTEE/COMMISSIONER REPORTS A.FINANCE SUBCOMMITTEE B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE 10.DIRECTOR'S REPORT CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on 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. FUTURE AGENDA ITEMS ADJOURNMENT POSTED: 5/5/22 at 5:00 p.m. by dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Water Utility Commission 1. Meeting Date:05/09/2022 Submitted By:Danielle Tanner, Water SUBJECT: REVIEW AND APPROVAL OF THE MARCH 21, 2022 SPECIAL SESSION MEETING MINUTES AND MAY 3, 2022 STUDY SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I move to approve (approve with changes) the March 21, 2022 Special Session meeting minutes and May 3, 2022 Study Session meeting minutes. Attachments Item 1 - Draft Minutes 03/21/22 Item 1 - Draft Minutes 5/3/22 D R A F T MINUTES WATER UTILITY COMMISSION SPECIAL SESSION MARCH 21, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE SPECIAL SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL Present: Greg Hitt, Vice Chair Alan Forrest, Commissioner Byron McMillan, Commissioner Robert Milkey, Commissioner Pat Olson, Commissioner Absent: Tom Marek, Chair Chuck Hollingsworth, Commissioner Staff Present:Peter A. Abraham, P.E., Water Utility Director Mary Rallis, CPA, Water Utility Administrator Lee Jacobs, P.E., C.P.M., Water Utility Engineering Manager David E. Allred, Water Operations Manager Attendees: Councilmember Bohen, Town Council Liaison CALL TO AUDIENCE - No comments were received. SPECIAL SESSION AGENDA Vice Chair Hitt stated the order of the agenda would change per staff's request. The re-organized agenda is as follows: Item #3 will be moved to Item #5, Item #4 will be moved to item #6, Item #5 will be moved to Item #4 and Item #6 will be moved to Item #3. Items 1,2 and 7-10 will remain as posted. 1.REVIEW AND APPROVAL OF THE FEBRUARY 15, 2022 SPECIAL SESSION MEETING MINUTES Motion by Commissioner Robert Milkey, seconded by Commissioner Byron McMillan to approve the February 15, 2022 Special Session minutes as written. Vote: 5 - 0 Carried 2.WELCOME NEW WATER UTILITY COMMISSION MEMBERS ALAN FORREST AND PATRICIA 03/21/22 Minutes, Water Utility Commission Special Session 1 2.WELCOME NEW WATER UTILITY COMMISSION MEMBERS ALAN FORREST AND PATRICIA OLSON Vice Chair Hitt welcomed the new commissioners. The new commissioners introduced themselves and provided their backgrounds. 3.UPDATE AND DISCUSSION ON INDEPENDENT NORTHWEST RECHARGE, RECOVERY, AND DELIVERY SYSTEM (L. JACOBS) Water Utility Engineering Manager Lee Jacobs provided a presentation which included the following: - Background - Partnered and Oro Valley Water Utility project limits and alignment - Project elements - Partnered project update map - Environmental, cultural and Natural Plant Preservation Ordinance - Booster design at partnered forebay - Transmission design and property acquisition - Request for qualifications design build - Scope of work development for “D” Zone blending - La Cañada booster station “E” to “F” and “E” to “G” Zone boosters Discussion ensued amongst the Commission and staff. 4.UPDATE AND DISCUSSION ON PARTNERED NORTHWEST RECHARGE, RECOVERY, AND DELIVERY SYSTEM (P. ABRAHAM) Water Utility Director Peter Abraham provided a presentation which included the following: - Foundation of the project - Project pipeline alignment map - Partner project elements - Expansion of partnered project, goals and IGA details - Financials 5.UPDATE, DISCUSSION AND POSSIBLE ACTION ON WATER UTILITY ANNUAL REPORT (P. ABRAHAM) Water Utility Director Peter Abraham presented on Agenda Item #5. Discussion ensued amongst Commission and staff. Motion by Commissioner Robert Milkey, seconded by Commissioner Pat Olson to render the Water Utility Annual Report to the Town Council. Vote: 5 - 0 Carried 6.UPDATE AND DISCUSSION ON WELL, PUMP AND WELLFIELD CONDITION (P. ABRAHAM) Water Utility Director Peter Abraham provided a presentation which included the following: 03/21/22 Minutes, Water Utility Commission Special Session 2 Water Utility Director Peter Abraham provided a presentation which included the following: - Well location map - Data collection and calculations for well and pump assessment - Data analysis to assess well and pump condition - Data collection and analysis to assess wellfield condition Discussion ensued amongst the Commission and staff. 7.DISCUSSION AND POSSIBLE ACTION REGARDING A WATER UTILITY COMMISSION FIELD TRIP IN APRIL (P. ABRAHAM) Water Utility Director Peter Abraham provided a presentation which included the following: - Overview/USF - OVWU stores water at GSFs and USFs - Location - Proposed schedule Discussion ensued amongst the Commission and staff. Staff will review calendar options with Tucson Water and email options to the Commission. 8.TOWN COUNCIL MEETINGS/COMMUNICATIONS Councilmember Bohen commented on the following: - Liquor license for Pusch Ridge Golf Course - Upcoming budget season - Increased costs and increased revenues 9.SUBCOMMITTEE/COMMISSIONER REPORTS A.FINANCE SUBCOMMITTEE - No report. B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report. 10.DIRECTOR'S REPORT Water Utility Director Peter Abraham provided a presentation which included the following: - Upcoming meetings - Upper Colorado Basin snowpack comparisons - 2022 snow water equivalent CALL TO AUDIENCE - No comments were received. FUTURE AGENDA ITEMS - No items discussed. ADJOURNMENT 03/21/22 Minutes, Water Utility Commission Special Session 3 Motion by Commissioner Byron McMillan, seconded by Vice Chair Greg Hitt to adjourn the meeting at 6:32 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 day of March 21, 2022. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Danielle Tanner Senior Office Specialist 03/21/22 Minutes, Water Utility Commission Special Session 4 D R A F T MINUTES WATER UTILITY COMMISSION STUDY SESSION MAY 3, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE STUDY SESSION AT OR AFTER 12:30 PM CALL TO ORDER Chair Marek called the meeting to order at 1:38 p.m. ROLL CALL Present: Tom Marek, Chair Greg Hitt, Vice Chair (Left at 1:46 p.m.) Alan Forrest, Commissioner Chuck Hollingsworth, Commissioner Byron McMillan, Commissioner Robert Milkey, Commissioner Patricia Olson, Commissioner Staff Present:Peter A. Abraham, P.E., Water Utility Director Attendees: Timothy Bohen, Town Council Liaison STUDY SESSION AGENDA 1.DISCUSSION REGARDING THE SOUTHERN AVRA VALLEY STORAGE AND RECOVERY PROJECT / CENTRAL AVRA VALLEY STORAGE RECOVERY PROJECT TOUR Water Utility Director Peter Abraham discussed the tour of Tucson Water's recharge and recovery facilities. He provided details on how the Central Arizona Project water is recharged in the aquifer, recovered and pumped to the forebay reservoir and utilized in the Oro Valley Water service area. He explained that water which is not recovered becomes long term storage credits for potential future use. Discussion ensued amongst staff and the Commission members regarding Item 1. ADJOURNMENT Motion by Commissioner Chuck Hollingsworth, seconded by Commissioner Robert Milkey to adjourn the meeting at 1:47 p.m. Vote: 6 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the study session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 3rd day of May, 2022. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Danielle Tanner Senior Office Specialist Water Utility Commission 3. Meeting Date:05/09/2022 Submitted By:Danielle Tanner, Water SUBJECT: UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Item 3 - Update and Discussion on Water Utility Financials Water Utility Commission Meeting May 9, 2022 Oro Valley Water Utility Update & Discussion on Water Utility Financials Mary Rallis, C.P.A. Water Utility Administrator Financial Update –Fiscal Year 2021/22 -Revenues REVENUES Actuals Thru 3/31/22 Budget Notes Potable Water Sales $9,758,000 $12,600,000 Projected to exceed budget by $442,000 Reclaimed Water Sales $922,000 $1,374,000 Projected to meet budget Groundwater Preservation Fees $1,630,000 $2,380,000 Projected to exceed budget by $60,000 Service Fees $630,000 $875,000 Projected to meet budget TOTAL REVENUES $12,940,000 $17,229,000 Total revenues projected to exceed budget by $502,000. Financial Update –Fiscal Year 2021/22 -Expenses EXPENSES Actuals Thru 3/31/22 Budget Notes Personnel $2,367,523 $3,662,217 Projected to be below budget due to vacancy savings Operations & Maintenance $6,203,579 $9,349,512 Projected to meet budget Capital $477,585 $1,050,000 Projected to meet budget Debt Service $4,935,311 $4,935,311 Actuals at budget TOTAL EXPENSES $13,983,998 $18,997,040 Total expenses projected to be below budget. Customer Service Update –Thru 4/30/22 FY 2020/21 Thru 3/31/22 New meters installed 505 111 Customer base 20,966 21,077 Water audits performed 56 34 Water Smart Registered Accounts 6,446 6,931 Discussion Water Utility Commission 5. Meeting Date:05/09/2022 Submitted By:Danielle Tanner, Water SUBJECT: UPDATE AND DISCUSSION ON WATER RESOURCE USAGE AND THE COLORADO RIVER (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Item 5 - Update and Discussion on Water Resource Usage and the Colorado River System Peter A. Abraham, P.E. Water Utility Director Water Utility Commission May 9, 2022 Oro Valley Water Utility Update & Discussion on Water Resource Usage & the Colorado River System Oro Valley Main Service Area Jan –Mar 2022 Water Use by Type Countryside Service Area Jan –Mar 2022 Water Use by Type Colorado River System Lake Powell & Lake Mead Lake Powell –Glen Canyon Dam March WSE was 3,523 ft. Hydroelectric power cannot be produced below a WSE of 3,490 ft. April thru July runoff expected to be 6.58 MAF. 2022 Glen Canyon Dam release to be reduced / delayed from 7.48 MAF to 7.0 MAF. Projected end of year WSE with modified dam releases is approximately 3,550 ft. Lake Mead –Hoover Dam March WSE was 1,063 ft. This is 12-feet below the Tier 1 shortage trigger of 1,075 ft. Hydroelectric power cannot be produced below a WSE of 890 ft. 2022 Glen Canyon Dam release to be reduced / delayed form 7.48 MAF to 7.0 MAF. CAP 500 + plan: Mitigation strategy to reduce Lake Mead WSE declines in calendar year 2022 & 2023. Planned prior to news of reduced / delayed glen Canyon Dam release. Tier 2 shortage trigger is 1,050 ft. Projected end of year WSE with modified dam releases is approximately 1,050 ft. Lower Basin Drought Contingency Plan CAP priority system that governs CAP water deliveries in times of shortage OVWU CAP water allocation is part of the M&I Pool 1.2M AF structural deficit eliminated prior to M&I delivery curtailments 1.2 M AF delivery reduction results in a 640,000 AF/Yr. reduction in CAP deliveries. Looking forward The river’s existing management guidelines are set to expire in 2026. Highlights the importance of managing water resources for the greatest beneficial use. Structural deficit needs to be eliminated. A Tier 2 shortage is likely by calendar year 2022 or 2023. A Tier 2 shortage does not affect Oro Valleys CAP entitlement. The Utility’s water resource management plan takes into consideration a hotter and dryer future with reduced CAP entitlement. Hoover Dam Glen Canyon Dam Discussion Discussion Water Utility Commission 10. Meeting Date:05/09/2022 Submitted By:Danielle Tanner, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Item 10 - Director's Report Peter A. Abraham, P.E. Water Utility Director Water Utility Commission May 9, 2022 Oro Valley Water Utility Director’s Report Upcoming Meetings May 11, 2022 Town Council Budget Study Session Council Chambers @ 5 p.m. May 12, 2022 Town Council Budget Study Session Council Chambers @ 5 p.m. May 18, 2022 Town Council Regular Session Council Chambers @ 6 p.m. June 1, 2022 Town Council Regular Session Council Chambers @ 6 p.m. August 8, 2022 Water Utility Commission Meeting Hopi Room @ 5 p.m. Water News -2022 Colorado Snow Water Equivalent Thank You