HomeMy WebLinkAboutMinutes - Water Utility Commission - 1/8/2007 MINUTES
ORO VALLEY WATER UTILITY COMMISSION ITEM
REGULAR SESSION
JANUARY 8,2007
HOPI CONFERENCE ROOM :. /la
11,000 N.LA CANADA DRIVE
CALL TO ORDER-AT OR AFTER 6:00 P.M. 1
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ROLL CALL-6:00 P.M.
MEMBERS PRESENT: Dave Powell,Chair
Winston Tustison,Vice Chair
George Calabro,Commissioner
Elizabeth Shapiro,Commissioner
Harold Vaubel,Commissioner
John P.Hoffman,Commissioner-Arrived 7:15
MEMBERS ABSENT: Brent Egbert,Commissioner
STAFF PRESENT: Philip C.Saletta,Water Utility Director
Shirley Seng,Utility Administrator
David Ruiz,Engineering Division Administrator
Robert Jacklitch,Project Manager
Jim Peterson,Water Utility Regional Coordinator
OTHERS PRESENT: Council Liaison,B.Gillaspie
Council Member,K.C.Carter
'EM#1 APPROVAL DECEMBER 11,2006 MINUTES - Chair,Dave Powell entertained a motion for approval of the
iiecember 11,2006 minutes.
MOTION: Vice Chair Tustison MOVED to approve the December 11, 2006 minutes. Commissioner Calabro
SECONDED the motion.MOTION PASSED:Unanimously.
Chair Powell indicated that items #4 and #5 would be moved below Directors Report in order to accommodate
Commissioner Hoffman arrival at 7:00.
ITEM #2 BACKFLOW PREVENTION CODE CHANGES'UPDATE - Ms. Seng reported some of the major
changes to the backflow prevention code as they appeared in the Commission's Communication:
• Backflow prevention requirements for class 1 and 2 fire systems
• Backflow prevention requirements for graywater systems
• Backflow prevention requirements for reclaimed water
• Test notification policy modified to allow for two customer notices instead of three
• Policy to address non-compliance issues with commercial accounts-OVWU will perform testing if necessary
• Changes to the penalties and fees sections
• General language changes
Ms -Seng indicated that two citizens were present for the Backflow Prevention.Code changes at_"the November meeting-John
Sclair- President Arizona Backflow Prevention Association and Karen
- t,LocalhTester in Arizona.Both individuals
m_cpressed concerns about the ordinance and some of their comments and changes ere_incorporated._
Seng
reported- --::.on
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-Ptoo high for_non-testingcompliance Staff believesthat he en tiesareclearl defined_
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appropriate._ _
1-.08-07 , MINUTES, ORO VALLEY WATER UTILITY COMMISSION
-Appeals Section hearing partial in the Water Utility favor(j.Sinclair).Ms.Seng indicated that the proposed ordinance
states the Hearing Committee should consist of Director, Cross Connection Control Specialist and a member of the
Water Utility Commission.
-taff Recommendation:
Ms.Seng stated that staff is looking for recommendation from the Commission to forward the draft Backflow Prevention and
Cross-Connection Control Ordinance to the Town Council for their consideration.Ms.Seng ended her report.
Chair Powell praised staff for taking the time to involve members of the community to review the ordinance in detail and
showing that it was not an adversarial document and something that was truly needed.
Mr. Saletta reminded the Commission that on January 24 the Ordinance would be part of a Study Session with Mayor &
Council, Location: Council Chambers. After the Session, the Ordinance would be forwarded for formal Town Council
approval.
There were no further questions.
Chair Powell entertained a motion for approval of the Backflow Prevention and Cross-Connection Ordinance.
MOTION: Commissioner Vaubel MOVED to forward the draft Backflow Prevention and Cross-Connection
Control Ordinance to the Town Council for their consideration. Vice Chair Tustison SECONDED the motion.
MOTION PASSED:Unanimously.
ITEM#3 -UPDATE ON IMPACT FEE STUDY:Ms.Seng reported the following:
-Review of Impact Fees: The Potable Water Development Impact Fee &Alternative Water Resources Development
Impact Fees are being evaluated and analyzed by Red Oak Consultants.
-Potable Water Development Impact Fee: Consultants used two different methods for analyzing: Historical Asset
Value & Forward Looking Value. Ms. Seng explained the two methods, and the concept of EDU = (Equivalent
Dwelling Unit represents a 5/8 inch water meter).
-Alternative Water Resources Development Impact Fee: The Consultants have calculated escalation factors for
the CAP infrastructure identified in 2002 SARWMS (Southern Arizona Regional Water Management Study) report
and are focusing on some of the finances relating to CAP infrastructure.
-Brown &Caldwell: Consultants will perform the technical work on groundwater sustainability component. This will
help determine the proportionate share of CAP and reclaimed costs that would be paid by existing customers through
GPF (Groundwater Preservation Fee) and by future customers through AWRD Impact Fee. A presentation will be
given to Town Council at the January 24 Study Session.
-Draft Impact Fee Analysis 2007 Commission Work Plan - Ms. Seng gave an explanation and breakdown of the
Commission Work Schedule for the implementation of the proposed impact fee increases.
Ms. Seng encouraged the Commission to attend the January 24, 2007 5:30 p.m. Town Council Study Session; however a
quorum was not necessary.Ms.Seng ended her report.
Chair Powell requested copies of any reports or documents be forwarded to the Commissioners before the Study Session.Mr.
Saletta will forward copies of the Power Point Presentation via email and any other documentation. Chair,Dave Powell also
encouraged Commission members to attend in support of OVWU staff.
Mr.Saletta gave a brief background of the January 9 meeting with SAHBA(Southern Arizona Homebuilders Association). He
explained that it was the public's opportunity(developers &contractors) to voice their comments about the ordinance. Mr.
Saletta emphasized the importance of the Commission's attendance to the Public Hearing on May 16,2007 Location: Town
Council Chambers.There were no further questions.
Items#4 and 5 skipped.
1,08-07 , MINUTES,ORO VALLEY WATER UTILITY COMMISSION
SUBCOMMITTEE REPORTS-
Finance Subcommittee:Vice Chair Tustison reported the following:
iIeeting: The Finance Subcommitteemet January 3rd Topic: Reviewed water rates structure and various aspects of the rate
,, information process however, not all the is available at this time. The majority of meeting was spent discussing the
different rate tiers and whether or not additional tiers should be added. In addition, the subcommittee reviewed the Impact
Fee studies which are in progress.Vice Chair Winston Tustison ended his report.
Ms. Seng indicated that the proposed schedule to implement water rates was included in the W.U.C.packet. Ms.Seng gave a
breakdown of the different tiers she also mentioned that the subcommittee is evaluating and analyzing the tier formation.
Mr. Saletta pointed out that a Public Hearing to Increase Water Rates was also scheduled for the May 16,2007 Town Council
Meeting.On March 14,2007 a Joint Study Session with Town Council and Water Utility Commission is planned.
STAFF REPORTS:
Report on various projects:Mr.Jacklitch reported the following:
-Pusch View Lane Well G9: Design Drawings 90%complete.Out to Bid:January2007 -Town Council Approval:
First week in March 2007 -Construction Schedule:April 2007
-Pusch Ridge Reservoir: Roof will have a concrete covering by week ending January 12, 2007. Contractor Ashton
Construction has all equipment on site (booster pumps,electrical controls and motor starters).Completion date:April
2007.
Mr.Jacklitch ended his report.
Potable Water System and Reclaimed Water System Status: Mr.Ruiz reported the following:
-December 2006 Potable Operation Report: -Peak Daily Demand =7 MGD Rainfall=Minimal
Peak Daily Demand Operations Report
-December 2006: Demand Low&Storage High
Production Report
-December 2006: -Total Production = 173.943 MG -Avg.Daily Production =5.79 MG
-Daily Capacity= 14.95 MG -Operational Point @a 38.77% (Monthly Average)
Mr.Ruiz indicated that the Reclaimed System has helped significantly in reducing the potable water system demand.
Reclaimed Water System
-December 2006: -Total Gallons pumped =486.249 MG -Yearly total =486,249 MG
Reclaimed delivered to three golf courses north of Tangerine
Reclaimed Water System Phase II
-Delivery to two Hilton Golf Courses (North of La Canada)
-Painted Sky School:Bids were too high and not much interest was received from outside contractors.Staff submitted
a cancellation for bids and Mayor&Council approved it. Staff has decided to incorporate the design bid with the La
Canadapipeline project.If bids come in too high,the Utility will have to makea decision if they should proceed with
the project.
• -Design Plan:Plans are nearly complete but a 404 permit is pending from the Corps of Engineers.
-Project completion date:April 2008
Mr.Ruiz ended his report.
TOWN COUNCIL MEETINGS/CO CATIONS — Council member Gillaspie discussed the upcoming Town
Council Study Session January 24th and asked that the Commission try to attend.
DIRECTOR'S REPORT: Mr.Saletta reported the followin
-Upcoming-Meetings:January 9 Meeting with SAHBA(Southern Arizona Homebuilders Association)
-Handout: Email from Water Casa- V. Little. Mr. Saletta gave a brief explanation about the proposed draft legislation under
�' P P g
Nr.on Per Capita Conservation Programs Third Management Plan. Issue:Best Management_Conservation Practices.
3
1-08-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
-Arizona Infrastructure Financing Authority(WIFA):The Water Utility submitted an application December 15,2006 for a low
interest loan for the Reclaimed Water Phase II pipeline. The application will be forwarded to WIFA's Planning &Financing
Committee on February 7, 2007, it will then be forwarded to WIFA's Board for consideration of approval on February 21,
2007.Staff anticipates interest rate loan set @ 3.2%- 3.6%range.
Central Arizona Water Conservation District: Staff attended the CAWCD meeting on January 4th. Four new board members
were recently selected. Mr. Dave Modeer (Tucson Water Director) was elected as temporary Acting President of the board.
Mr.Saletta ended his report.
Chair,Dave Powell opened Items#4&5 for discussion.
ITEM #4 - INTERGOVERNMENTAL AGREEMENT WITH NORTHWEST WATER PROVIDERS: Mr.
Saletta reported the following:
-IGA Central Arizona Project Water Delivery System Cost Study: The Intergovernmental Agreement includes the following
Northwest Water Providers:Metropolitan Domestic Water Improvement District,Flowing Wells Irrigation District,the Town
of Marana and Town of Oro Valley.
Mr.Saletta gave a brief description the CAP Water Delivery System:
CAP System:-30,000 a/f per year system -Oro Valley Delivery= 10,000 a/f
Proposal: Carollo Engineer selected to conduct study. -Total Cost of Study=$50,000
-Oro Valley Cost =$16,665.00 (1/3 cost share)
Cost Study: The study is needed in order to move forward with actual financing. The Study is expected to be
completed May 2007.The Metro Water Board will be considering approval of the IGA January 8,2007 and will act as
the contract administrator and project manager with close communication to Northwest providers.
Mr. Saletta indicated that staff was requesting that the Water Utility Commission recommend to Town Council approval of
the IGA to be considered at their January 17,2007 Meeting. Mr.Saletta ended his report.
Questions and answers occurred on the following:
-Vice Chair Tustison asked: How was it decided the cost should be divided? - (P. Saletta) The costs will be prorated
based on a 30,000 a/f CAP project. Oro Valley will bill approx. 10,000 a/f. -Metro Water plans to develop
10,000 a/f -Town of Marana =5-7,000 a/f -Flowing Wells:3,000 a/f
Chair Powell entertained a motion for approval of the IGA and staff's recommendation to Town Council.
MOTION: Commissioner Vaubel MOVED to recommend Town Council approval of Resolution No. 07- .
This Resolution and IGA will be considered by Town Council at the January 17, 2007 Meeting. Commissioner
Shapiro SECONDED the motion.MOTION PASSED:Unanimously.
ITEM#5-CENTRAL ARIZONA PROJECT WATER REALLOCATION: Mr.Saletta reported the following:
-CAP Reallocation:Arizona Department of Water Resources (ADWR) final recommendation to reallocate 65,647 AF
will be prorated among existing contractors. Oro Valley Reallocation =3,557 AF -O.V.current allocation =6,748 AF
divided under 3 existing subcontracts. Mr. Saletta gave the breakdown of the three subcontracts: CI--L Water
Company, O.V. #1, and City of Tucson Water Purchase. All three subcontracts will be rolled into one new
subcontract for 10,305 AF in the name of the Town of Oro Valley eliminating the older subcontract. The contract
has been reviewed by Staff,as well as Legal Department.
-Central Arizona Water Conservation District (CAWCD): Responsible for applying payments to the CAP project in
order to payoff the Bureau of Reclamation.
=TOV Financial Impact:Approximately$2,324,000 -Payment Schedule:It is in the Town's best interest to pay in five
installments of$505,000 to avoid rate shock. --
-CAP Contract: This new contract would be presented to Town Council February7,2007.Approval process for the
subcontract is sixty(60) days from the date the Town has received the document.
---Mr.-Saletta ended his report.-- -------
Lestions and answers occurred on the following:
r 08-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
-Vice Chair Tustison asked: How would the payments be repaid? Does it come out from the water fees each year?
(P.Saletta)Payments can be made with existing commodity usage rate,Groundwater Preservation Fee (GPF) or from
monies collected from the AWRD Fee.
0 -Vice Chair Tustison asked: What does the annual capital repayment obligation involve? (P. Saletta) Future
payments will be paid off at a rate of$24.00 A/F multiplied by 3,557 AF (ADWR reallocation)
-Chair, Dave Powell asked: In last years 10-year rate analysis projections was the repayment taken into account? (S.
Seng) The $505.000 per year payment plan was included in AWRD Impact Fund. Annual capital payment on the
3,557 A/F was included in AWRD Impact Fund.Annual capital for the 6,748 A/F included in the Enterprise Fund.
Staff Recommendation:
Water Utility Staff recommends that the Commission forward the CAP subcontract to the Town Council at their February 7,
2007 meeting.
Chair, Dave Powell entertained a motion for approval to forward the CAP Subcontract to Town Council for their
consideration.
MOTION: Vice Chair,Winston Tustison MOVED to forward the CAP subcontract to the Town council for their
consideration.Commissioner,Betty Shapiro SECONDED the motion.MOTION PASSED:Unanimously.
FUTURE AGENDA ITEMS
1. Approval January 8,2007 Minutes
2. Kai Farms Groundwater Storage Issue
3. Water Rates/Impact Fee- Update
4. Annual Report 2007-Update
NEXT MEETING:- February 12,2007 Location:Hopi Conference Room
air Dave Powell entertained a motion to adjourn the meeting.
4.
MOTION: Commissioner, Betty Shapiro MOVED to adjourn the meeting. Commissioner, George Calabro
SECONDED the motion.MOTION PASSED:Unanimously.
ADJOURNMENT: 7:15 P.M.
Prepared by,
oedrae.e.,)
Iris L.Chaparr
Office Specialist