HomeMy WebLinkAboutMinutes - Water Utility Commission - 4/9/2007 •
MINUTES
ORO VALLEY WATER UTILITY COMMISSION "7:- M
REGULAR SESSION
APRIL 9,2007
HOPI CONFERENCE ROOM 1=4
11,000 N. LA CANADA DRIVE
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CALL TO ORDER—AT OR AFTER 6:00 P.M.
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ROLL CALL—6:00 P.M.
MEMBERS PRESENT: Dave Powell,Chair
Winston Tustison,Vice Chair
George Calabro,Commissioner
Brent Egbert,Commissioner
John Hoffman,Commissioner
Elizabeth Shapiro,Commissioner
Harold Vaubel,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: Bill Adler—O.V. Resident
ITEM #1 APPROVAL OF MARCH 12,2007 MINUTES—Chair Powell entertained a motion for approval of the March
[2,2007 minutes.
MOTION: Commissioner Shapiro MOVED to approve the March 12, 2007 minutes. Vice Chair Tustison
SECONDED the motion.MOTION PASSED:Unanimously.
ITEM #2 —USGS REGIONAL WIDE AQUIFER ASSESSMENT— Mr. Hoffman and Mr.Pool of the United States
Geological Survey gave a presentation on the gravity meter survey and the regional aquifer. Mr. Hoffman,who is also on the
Water Utility Commission,and Mr.Pool gave the following power point presentation:
• History of USGS and Oro Valley Cooperation -Aquifer Storage Change (Water Table)
• Gravity Measurements -Aquifer Storage Changes in Basins -Absolute Gravity Meter
• GPS Surveys -Water Storage Changes Portion of Tucson Basin 2002-2004,2005-2006 -The largest
changes,decreases in water storage, occur in the Rillito Creek&Canada del Oro Wash areas.
• Land Subsidence in the TAMA-1998-2002, 2002-2004, 1987-2004-05 (Maximum subsidence central area of basin East
of University&Santa Cruz River)
• InSar in the TAMA—February 2003 to October 2006.Future plan:USGS will util1ze InSAR techniques via satellite)
• Considerations for continued programs: target areas of interest, Incorporate use of A-10 absolute gravity meter,Utilize
InSar technology,Utilize continuous-operating GPS receivers.
Questions and answers occurred:
-Vice Chair Tustison asked about correlation of rainfall and changes in the aquifer water recharge rates. Mr. Pool indicated
that a water research article was published about 1.5 years ago discussing variations in recharge rates due to climate changes.
Most recharge occurs during the El Nino season.
-Mr. Saletta asked about other seismic reflective techniques to detect water levels. Mr. Hoffman indicated that the possibilities
of using seismic&electrical methods to measure changes in the water table existed but it was difficult to use accurately.
Mr.Pool ended his report.
4-09-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
ITEM #3 -WATER RATES—Vice Chair Tustison discussed the possibility of changing the water rate schedule because of
,taff s responsibilities and other critical deadlines as the Annual Report, Operating Budget and Impact Fees. Vice Chair
fustison indicated that for these reasons the Finance Subcommittee was recommending delaying implementation of the new
fee schedule for Water Rates at this time.
Ms. Seng presented the following materials in the Commissions packets:
• Water Rates Implementation: Staff is requesting that the Commission provide some direction on which scenarios they
would prefer.
• Notice of Intent—Possible Town Council approval August 15th or September 5th
September 19th option (fall back position for September 5,2007 option)
Ms.Seng reviewed financial scenarios (E,F,G,H)
-Growth Assumptions (Connection/EDU's) @ 320 new connections
-Basic assumptions regarding Personnel Costs,0 &M costs and Debt Service-no changes made
-Explanation of EDU factors (Equivalent Dwelling Units) was given. Impact Fee revenue projections 400 EDU was
used, Water Rate projections 320 new connections used.
-Scenarios F&H—Assumption:Town Council does not change Impact Fees.
-Scenarios E&G—Assumption:Three-year impact fee phase in as proposed.
-Potable Impact Fee—Assumption:Implement in one lump sum as proposed.
-Alternative Water Impact Fee if increase is adopted—Affects GPF—Potable Water will increase by.20¢.
Ms.Seng explained no decisions would have to be made. Staff would like some direction on the water rates implementation.
An answer and question occurred.
Prior to the Commission's decision,Chair Powell introduced Mr.Bill Adler from the audience who spoke about the water
rates.
Mr.Adler introduced himself as a member of the Planning and Zoning Commission.He emphasized the importance of water
conservation and commercial/retail properties usage of irrigation on median strips and landscaping areas. He was very
concerned about the groundwater table and public education. He felt the Commission and Town Council should restrict and
limit the landscaping plan submittals to Town Council and the Development Review Board before Town Council had a
chance to review them.Mr.Adler had no further comments.
Chair Powell recognized Mr.Alder's concerns and felt that public education was a necessity especially on issues such as water
rates and conservation. He emphasized the Commission's dedication and commitment to water conservation.
Commissioner Vaubel indicated that golf course turf issues should be discussed,in addition to drought tolerance requirements,
public education and water conservation.
Chair Powell entertained a motion on the water rates process to Town Council.until September 5,2007 as submitted by staff.
MOTION: Vice Chair Tustison MOVED to recommend to the Town Council that implementation of the water
rates process be deferred until September 5,2007 at which time the Council will be asked to Adopt a Notice of Intent
to Increase Water Rates, Fees & Charges. Commissioner Calabro SECONDED the motion. MOTION PASSED:
(5-2). OPPOSSED: Commissioners Shapiro and Egbert
ITEM #4 WATER DEVELOPMENT IMPACT FEES—Mr. Saletta reported that Council approved the Potable Water
System Development Impact Fee Notice of Intent. Passed: 7-0. Town Council approved the Alternative Resource
Development Impact Fee Notice of Intent. Passed: (4-3). Town Council Public Hearing is scheduled for June 6, 2007. If
Council adopts both fees on June 20,2007,these fees will be implemented September 19,2007.
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MINUTES,ORO VALLEY WATER UTILITY COMMISSION
Mr.Saletta reviewed the following materials:
• SAHBA Options for Oro Valley Water Impact Fee were discussed and a handout was delivered in the WUC Packets:
Assessment on property through a Community Facilities District, Delay of Impact Fee program until a schedule of
capital expenditure is developed, Delivery of future water from City of Tucson via 24 inch service line, Assessing
service charge to new homes, SAHBA support of the Potable Water System Development Impact Fee, Consider
charging golf courses full costs of effluent water,SAHBA reviewing Phase-in 3 increment approach as an option.
• A letter dated March 24, 2007 was received from Scott G. Devereaux of Sun City Vistoso Community Association
supporting Development Impact Fees.
• Ms. Seng gave a breakdown of the meter sizes by customer type and reviewed a spreadsheet on Meter Size &
Customer Type Water Use Comparison.
• Water Utility Impact Fee Analysis presentation to Northern Pima County Chamber of Commerce: Mr. Saletta
reviewed the presentation that was made to NPCCOC.
-Overview -Introduction -Stakeholders Meetings -Comments from Stakeholders
-Water Use and Sources of Supply -Why the Need of Reclaimed and CAP?
-Overview TOV Water Utility Impact Fees (Alternative&Potable) -Arizona Revised Statutes
-Basis of Potable Water versus the Alternative Water Resources Fee(new supply)
-Potable Water System Development Impact Fee(PWSDIF) ($15.4 million for expansion projects over 10 years)
-Alternative Water Resources Development Impact Fee(AWRDIF) (Current fee: $300 for new 5/8"water meter)
-Alternative Water Resources Supply$139,600,000 Capital and Financing Costs
-Alternative Water Resources Development Impact Fee(AWEZDIF) -Groundwater Preservation Fee
-Graphs of Meter Sizes -Graph of Commercial Meter Sizes
-Graph of Water Use by Meter Sizes&Customer Type
-Proposed Commercial Fees by Meter Size
-Options for Implementation AWRDIF Only
-Process and Schedule:May meeting-Possible Town Council Study Session
There being no further questions Mr. Saletta ended his presentation. Chair Powell extended his appreciation to Staff for the
.xtensive work on the Potable Water System Development Impact Fee and Alternative Water Resource Development Impact
Fee.
Vice Chair Tustison reemphasized to the Commission that a large amount of monies would be spent in the near future and
that if the fees were delayed the outcome would be increases during shorter periods. It is important to begin raising these fees
because it would impact years 2010—2011 at which time the Utility will be faced with bigger expenses.
Commissioner Egbert expressed concerned about the impact fee increases and its affect to Commercial development. He felt
that the fees should be reviewed wisely and not rushed based upon deadlines and agendas. He felt that all the information
should be available before implementing the fees.
In answer to Chair Powell question Mr.Saletta indicated there was no need for any action from the Commission.
ITEM#5 HOME BUILDING FORECAST REPORT—Mr.Saletta reported the following.
• Memorandum to Mayor&Council and Special Report on Homebuilding Forecast by John Strobeck
-Homebuilding Forecast—A brief explanation on permits and ten-year forecast was given.
-Projected Median Price for new construction homes in Oro Valley through year 2016
There being no further questions Mr.Saletta ended his report.
ITEM #6 ANNUAL REPORT UPDATE: Ms. Seng reported that the Annual Report draft would be available to the
Commission by the week of April 16 via email.The Annual Report-2006 draft report will be presented to the Commission in
May and forwarded to Town Council for their approval June 6,2007.
There being no further questions Ms.Seng ended her report.
SUBCOMMITEE REPORTS
-Finance Subcommittee-Vice Chair Tustison had no report.
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4-09-07 MINUTES,ORO VALLEY WATER UTILITY COMMISSION
-Conservation Public Education—Commissioner Vaubel gave a brief report on Earth Day 2007 Festivity
— The Water Utility partnering with the library participated in Earth Day festivities. The Utility provided two
educational speakers: Daniel Lopez Native American Elder and Story Teller Tohono O'odham Nation George
Montgomery,Director of Botany from Sonora Desert Museum.
-O.V.Water Utility Booth Display: -Conservation materials -Earth Day t-shirts
-Utility Staff members:Mr.Kevin McCaleb&Karn Boyce were present to answer questions and hand out literature.
Commissioner Vaubel indicated that the festival was well received, with Mayor and several Council members in attendance.
Another event will be scheduled for next year. Commissioner Vaubel ended his report.
Commissioner Hoffman indicated that the USGS will be having an open house on April 28, 2007 and he would be sending
Mr.Saletta some information regarding this event.
STAFF REPORTS
Capital Projects—Mr.Jacklitch reported the following:
-Pusch Ridge Reservoir: The tank is complete. Booster pumps are being installed and the control building is almost
complete.The tank will be filled by end of May 2007.
-Oro Valley Country Club: O.V. Drive — 2000 feet of 8 inch pipe being installed. Relocation of water meters also
taking place, all fire hydrants have been installed. Completion Date: End of May 2007. Public Works Department
scheduled to resurface streets.
-Stone Canyon Water Plant #15 — Construction of 500,000 gal. storage tank above ground steel reservoir and
installation of 200,000 linear feet of pipe. No booster pumps installed. A small solar system for telemetry will be in
place.
-Pusch View Lane Well C-9—Design plans being finalized.This project will be advertised Friday,April 13,2007.The
project will be forwarded to Town Council for approval first meeting in June 07. Completion:December 2007
-King Air/Moore Rd. Reservoir: Reservoir capacity: 2.2 million gal inground concrete reservoir. Design Plans have
just been started.
Air.Jacklitch ended his report.
Potable Water System Status—Mr.Ruiz reported the following:
-Peak Daily Demand March 2007:Demand increases:7.0 MGD 'Highest point:9.0 MGD
-Peak Daily Demand Reservoir Storage March 2007: Reclaimed water has reduced potable water demand
Reclaimed Water System Status
-Phase I —All three golf courses have increased their reclaimed water demand. March 2007 increases = 41,500,000
million gallons.
-Phase II —The design work is still currently underway a base bid and alternate bid will allow the Water Utility to
install the pipeline in different areas depending on Public Works roadway work and construction schedule. Design
Plans:Complete—May 2007 404 Permit Issuance in June 2007
-El Conquistador Golf Pond relining-Scheduled:November 2007 -Complete:January 2008
Mr.Ruiz ended his report
TOWN COUNCIL MEETINGS/COMMUNICATIONS—(Council Member Gillaspie)
Mr. Saletta reported that Council member Gillaspie was in Washington to meet with several delegates and to discuss the N.W.
Reliability Storage Reservoir. Reservoir Issue: The cost of $32,000,000 will be paid by the Bureau of Reclamation and
repayment will be made by Central Arizona Water Conservation District.
DIRECTOR'S REPORTS—Philip Saletta
-Upcoming Meetings:Bureau of Reclamation meeting April 12,2007 Topic:Discuss CAP water delivery
-Status on the NW Water Providers CAP Alternatives and Cost Estimate Study: A complete report from Corollo
Engineers expected in June 2007. The report will include technical alternatives regarding treatment, pumping and
delivery.
-WIFA Loan Application: WIFA approved $6,000,000 loan for Reclaimed Water Phase II. The loan documents will
be forwarded to Town Council for approval June 2007.
Mr. Saletta ended his report
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4=09-0 MINUTES,ORO VALLEY WATER UTILITY COMMISSION
FUTURE AGENDA ITEMS
1.Approval April 9,2007 Minutes
__EXT MEETING:May 14,2007 Location:Hopi Conference Room
Chair Powell entertained a motion to adjourn the meeting.
MOTION: Commissioner Egbert MOVED to adjourn the meeting. Commissioner Shapiro SECONDED the
motion.MOTION PASSED: Unanimously
ADJOURNMENT: 8:15 P.M.
Prepared by,
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Iris L. Chaparro
Office Specialist
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