HomeMy WebLinkAboutMinutes - Water Utility Commission - 8/20/2007 MINUTES
ORO VALLEY WATER UTILITY COMMISSION ITEM
REGULAR SESSION
AUGUST 20,2007
HOPI CONFERENCE ROOM #
11,000 N.LA CANADA DRIVE
CALL TO ORDER-AT OR AFTER 6:00 P.M. 11-'°-°7
ROLL CALL-6:05 P.M.
CI*.0J
MEMBERS PRESENT: Dave Powell,Chair
Winston Tustison,Vice Chair
George Calabro,Commissioner
Brent Egbert,Commissioner
John Hoffman,Commissioner
MEMBERS ABSENT: Elizabeth Shapiro,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
ITEM #1 ELECTION OF WATER UITILITY COMMISSION OFFICERS - Mr. Saletta reported that nominations
were required for Chair and Vice Chair of the Water Utility Commission.Commissioner Tustison nominated David Powell for
Chairman. Commissioner Egbert nominated Winston Tustison as Vice Chair.
MOTION: Commissioner Egbert ceased nominations and elected Chair Dave Powell and Vice Chair Winston
Tustison into office for the period of July 1,2007 through June 30,2008. Commissioner Hoffman SECONDED the
motion.MOTION PASSED:Unanimously.
ITEM #2 APPROVAL OF MAY 14, 2007 AND JUNE 11, 2007 MINUTES - Chair Powell entertained a motion for
approval of the May 14,2007 and June 11,2007 minutes.
MOTION: Commissioner Calabro MOVED to approve the May 14 and June 11, 2007 minutes. Commissioner
Egbert SECONDED the motion.MOTION PASSED:Unanimously.
ITEM #3 - DROUGHT PRE PARE DNE SS PLAN - Mr. McCaleb gave a status report on drought conditions year
2006/2007 handout.
Precipitation
• Total Accumulated Precipitation as of August 17, 2007: 9.65 inches (Water year October 1 - September 30). Mr.
McCaleb explained that the precipitation calculations were taken from the Pima County Flood alert program and that the
sensors were located near Oro Valley's border. Historical data obtained from U of A closest station Campbell and River
Rd.
• Accepted Normal Accumulations (Historical):August: 9.88 inches
• End of Water Year Accepted Normal Accumulations: 10.83 inches
Temperature - As of August 17,2007 there have been 50 days of temperatures equaling or exceeding 98 degrees in the past
3-month period.
U.S.Drought Monitor Status - Arizona region listed as a Level 1 or moderate drought status.
Aquifer Water Levels -As of February 2007,water level declines for calendar year 2006 averaged 2.6 feet.
McCaleb indicated that currently Oro Valley was doing well with precipitation,but temperatures remain very high.
Questions and answers occurred:
Commissioner Egbert asked about feedback from the public. Mr. McCaleb indicated he had not received many responses or
questions about Stage 2 Drought Conditions.
8-20-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
There were no further questions Mr.McCaleb ended his report.
r.Saletta mentioned that staff was currently reviewing the drought status to consider if drought conditions should go back to
age 1.Staff plans to wait for the remaining month of August to reevaluate the existing drought stage.Mr. Saletta emphasized
that drought stages are declared administratively under the approved criteria in the Drought Preparedness Plan and therefore
approval from Town Council and the Commission to change the stages are not necessary. Staff will keep the Commission
informed on the status.
ITEM#4-WATER DEVELOPMENT IMPACT FEES-Ms.Seng gave an explanation on the following:
• Town Council approved the Potable Water Impact Fees June 20,2007
• Handout-Potable &Alternative Water Resources Development Impact Fees
-Potable Water Impact Fees:No suggested changes,Effective date:September 19,2007
-Alternative Water Resource Development Impact Fees: Several meetings took place with the stakeholders SAHBA,
Developers, Chamber of Commerce,Metropolitan Pima Alliance &Oro Valley staff. An agreement was reached that
a 5-Increment Phase-In approach for the AWRDIF would be in the best interest of the stakeholders. Changes:
Elimination of the Demand Adjustment Factor. Effective date: September 19, 2007 (Phase I). All other phases will
automatically become into effect every September 19 until 2011. Council approval will not be necessary.
Ms.Seng ended her report.
Mr.Saletta gave a brief explanation regarding the Town Manager's Memorandum:
Handout: Memorandum D. Andrews, Subject: Creation of the Alternative Water Resource Development Impact Fee
Working Group
-Working Group Members: Town Manager, Finance Director and Water Utility Staff, Southern Arizona Home
Builders Association,Metropolitan Pima Alliance, Tucson Association of Realtors,Town of Oro Valley,Water Utility
Commission Representative,Council Liaison,Citizen-at-large (Aaron Fischer)
To comply with the Town Manager's memorandum Mr.Saletta requested that the Commissioners appoint a representative for
the AWRDIF Working Group.
Mair Powell informed the Commission that a suggestion was made to have Vice Chair Tustison become the representative
because of his extensive work with the Finance Subcommittee as Chair.
CONSENSUS:The Commission unanimously agreed to appoint Vice Chair Tustison as the Commission's representative for
the Alternative Water Resource Development Impact Fee Working Group.
Question and answers occurred:
Commissioner Egbert asked about AWRDIF demand adjustment factor. Ms. Seng stated that since the amounts had
increased it would not have any negative impact to Capital Improvement Projects. Mr. Saletta indicated that Town
Council had requested that Staff review the Water Utility financial status as the AWRDIF incremental phases were
applied. He stated that one of the requirements of the Utility is to file an Annual Report with the State of Arizona.
This report will be filed September 2008.The information will be provided to Town Council after one year of the new
impact fees. Council can modify the phase-in concept whenever necessary.
There were no further questions Mr.Saletta ended his report.
ITEM#5 MARANA AND PIMA COUNTY WASTE WATER ISSUES-Mr.Saletta reported the following:
• Town of Marana Wastewater Effluent/Operations Wastewater Treatment Facilities - In accordance with a 1979 Pima
County Agreement, the Town of Marana believes that they could operate their own wastewater treatment plant
outside the Ina Road and Roger Road facilities. Furthermore, the Town of Marana believes by operating their own
wastewater treatment plants outside the Ina/Roger Road area they would not necessarily have to pay the 10% effluent
requirement to Pima County or their proportionate share to the Indian Nation under the Southern Arizona Water
Rights Settlement Act (SAWRSA). Mr. Saletta explained that Tucson Water supplies 80% -90% water deliveries to
Marana. The Town of Marana does not have long-term storage credits or the amount of CAP allocation as Oro
Valley.
• Town of Oro Valley- All wastewater&effluent is currently delivered to Ina/Roger Road facilities.In accordance with
the 1979,Pima County IGA Oro Valley is also paying a 10% effluent requirement.In addition,because of SAWRSA
2
8-20-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Oro Valley pays a proportionate share to the Indian Nation. Oro Valley will continue to monitor the situation to find
out ultimately what Marana, Pima County, City of Tucson and other entities may agree to. This situation does not
impact Oro Valley's existing IGA's and effluent rights.
Questions and answers occurred:
Commissioner Hoffman requested an explanation about the 10% effluent requirement.Mr. Saletta gave a description
and example regarding discharge of effluent into the Santa Cruz River and that 10% of the Oro Valley effluent is paid
to Pima County as part of the original 1979 IGA that was agreed to when we settled with Tucson on CAP allocation
and effluent.
Commissioner Powell asked if there was any political impact on the Northwest Partners Group regarding the Town
of Marana's situation. Mr. Saletta felt that it would not affect the Northwest Partners. It may affect the Northwest
Partners if Marana's Central Arizona Project water purchases were limited to 1500 a/f. At this time, Marana has
ground water with a minimal amount of CAP water and the rights to effluent.
ITEM #6 TUCSON WATER COOPERATIVE PROJECTS - Mr. Saletta reported on the memorandum from Mr.
David Modeer,Director,Tucson Water dated 5/15/07 regarding Opportunities for Water Credit Transfer Agreements with
the City of Tucson.Mr.Saletta pointed out several areas of interest:
• Oro Valley's groundwater credits primarily include the Kai Farms groundwater savings facility. Mr. Saletta explained
that accruing a fair amount of long-term storage credits over a short period could benefit the Town in terms of its
financial obligation with the Central Arizona Groundwater Replenishment District agreement.
• Tucson Water Proposal- Deliver CAP water to Tucson recharge facilities in order to build up credits. Effluent water
recharged in the lower Santa Cruz may also accrue credits. Tucson Water's objective is to increase ground water
recharge in the area and build up groundwater credits. Those credits can be used by participants to reduce payment of
Central Arizona Project water.This proposal will only be in effect for a short-term period.
• Groundwater Extinguishment Credits - Water providers can accrue these credits by also trading CAP Project water.
As a result,the providers can experience groundwater declines and reduce CAGRD replenishment costs.
Mr. Saletta asked for the Commission's support in pursuing further discussion with Tucson Water regarding the negotiations
for short-term credit opportunities. He indicated that the proposed agreement would be subject for review at the
Commission's next meeting and recommendation to Town Council for their approval.
Questions and answers occurred:
-Explanation of Extinguishment Credits (D. Powell). Mr. Saletta explained the non-use of Type 2 groundwater rights and that
when these are abandoned a certain amount equal to 15 times the annual use is available as an Extinguishment Credit.
-Kai Farms Railroad Switching station (D. Powell). Mr. Saletta indicated that Mr. Kai felt if the station was built,it could cut
his irrigation operation down to 1700-1800.The first step to the proposed switching station has been approved.
-CAP Allocation Status (W. Tustison) - Mr. Saletta mentioned that Kai's Farm CAP water delivery was approximately 4000
a/f last year. He explained the purchase of water through CAP M8d subcontract and Incentive water. Oro Valley's total
allocation will be 10,305 once it is validated through the court process.
Chair Powell entertained a motion to approve Staff's negotiations with Tucson Water for the purchase of short-term credits.
MOTION: Commissioner Egbert MOVED to approve that Staff investigate the opportunities of purchasing short-
term credits through Tucson Water. Vice Chair Tustison SECONDED the motion. MOTION PASSED:
Unanimously.
ITEM#7 WATER CODE RE VISI ONS-Mr.Saletta reviewed several sections of the Water Code:
Revise Sections
• Deleted areas referring to Town Engineer\Inserted Water Utility Director,Sections: 15.2, 15.3
Proposed change: Page 15-5-3 Refund of Deposits - Deleted interest earned of 5% referring to customer deposits on
account. Ms. Seng stated that before the Town acquired the two private utilities the companies were required to pay
interest under the guidance of the Arizona Corporation Commission.She believed that other water utilities were not
3
8-20-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
paying interest on deposits. Deposits typically stay on account for 1 year before the customer leaves or if the customer is
delinquent.
• Code Title Change- Currently staff is working with Legal Department whether to change the Title to Water Code or
Water Utility Code.In addition to changing the title,staff will have to define what is under the Water Utility code and
which areas pertain to Public Works Storm Water.
Mr. Saletta asked the Commission for their support in moving forward with the changes to the Water Code and for Town
Council approval at their meeting September 19,2007.
CONSENSUS: The Commission unanimously agreed to have Staff move forward to Town Council with the Water Code
changes at the next September 19,2007 Town Council meeting.
ITEM#8 RECLAIMED WATER PROJECT-Mr.Ruiz gave an update:
Reclaimed Project Phase II - The Utility continues to coordinate and work with Public Works with their planned roadway
improvements. The Phase II plans are complete (Location: La Canada Drive North Milton & South Hilton Golf courses).
Painted Sky Elementary School project is currently being re-bid.
Golf Course Ponds - Plans for the relining of the two golf course ponds are still under review by Public Works for drainage
issues.Staff plans to advertise this project within two weeks and the bid process will be scheduled in October 2007.In answer
to Vice Chair Tustison question Mr. Ruiz explained that construction could begin the first week in December and near
completion by end of June or July2008 in time for peak demand.
Reclaimed Water Phase I - Reclaimed water demand increased May and June.During the month of July,demand was reduced
considerably because of precipitation. Mr. Ruiz explained that by providing some education to the end users it would help
them in managing water quality. He indicated that the Utility would be sponsoring a reclaimed water informational forum
introducing Dr. Rick Almalfi specializing in water resources and reclaimed water. Forum date: Wednesday, August 22, 2007.
All golf course representatives would be attending the 2-hour forum.
There were no further questions Mr.Ruiz ended his report.
JBCOMMITTEE REPORTS- No reports.
STAFF REPORTS
Ms. Seng reported the following:
Update and Implementation of Water Rates
-Potable Water Rates - Town Council adopted the rates as proposed July 18, 2007. These rates will be effective August 18,
2007.Customers will not see rate increases on their bills until October 2007.
-Overview: Base rates &tier rates remained the same however, changes occurred in the usage allowed in each tier. A fourth
tier was established($5.00 per 1000 Gals.)
Construction Water Rates- Increased$1.00 ($6.00 per 1000 Gals.) Groundwater Preservation Fee- Increased.15
Reclaimed Water Construction Water Rates - No changes. All residents were informed about water rates increases in the
WaterWays newsletter.
Ms.Seng ended her report.
Mr.Jacklitch reported the following:
Capital Projects
-Punch Ridge Reservoir - Reservoir was completed and on line June 2007 along with the booster station. The reservoir
facilitates customers east side of Oracle mainly La Reserve Area.
-Water Plant 15 - Location: Stone Canyon Capacity: 500,000 gallon above ground storage tank. The tank is currently being
coated.Online Target Date:Late September or October 2007.
-Handout- Research Update Slowsand Filter Pilot Project. The project's objective:Salt removal from CAP water to help find
productive ways to improve fresh water recovery and to incorporate the slowsand filter process during the reverse osmosis
rrPatment. The reverse osmosis units are used to reduce brine concentrates volumes. The brine is used to irrigate salt tolerant
nts. Pilot Study Location:I-10- Tangerine Rd.
Mr.Jacklitch ended his report.
4
8-20-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Mr.Ruiz reported the following:
Potable Water System
'eak Daily Demand July 2007: A brief description was given regarding the reservoir levels.Mr.Ruiz indicated that the Daily
emand dropped significantly because of precipitation and temperatures. End of July Demand: Drop to 7.0 million gallons
per day(MGD).
Operations &Maintenance:Several wells are under routine maintenance and will be going back in service.
TOWN COUNCIL MEETINGS/COMMUNICATIONS-No report.
DIRECTORS REPORT-Mr.Saletta reported the following:
-Status on the NW Water Providers CAP Alternatives and Cost Estimate Study/Financial Analysis - The Technical
Alternatives Report Study&Cost Study draft was developed in July.The costs for the project were higher than anticipated but
the Utility's debt service of $5,800,000 is about the same as developed in the ANC/RD Impact Fee Sudy. The NW Providers
must decide which configuration of the Northwest CAP Projects will be built,and how they should be phased in.
-WIFA Loan Update - WIFA Loan closed Friday, August 17, 2007 for $6,000,000. This loan will cover Phase II Reclaimed
Water Project. The interest rate is 3.536%.A copy of the payment schedule was provided.
-Council Liaison Assignments- Council member Barry Gillaspie was reappointed at the Water Utility Commission Liaison. A
handout of the Council Liaison appointments was passed out.
-Water CASA IGA- The IGA was approved by Town Council. The Utility will continue to participate in water conservation
efforts through Water CASA membership.
-Update on Water Utility Commission Member Vacancy- This vacancy was advertised in July and closed August 31st. At this
time, the Utility has received four applications. The Committee will be ready to review the applicants after the closing date.
Committee Selection Team: Council member Gillespie, Chair Powell, Water Utility Director. The Water Utility Commission
should have a new member by November.
-Upcoming Meetings - Upcoming Event: August - 23 Time: 6 p.m. -Ref: Water Policy& Sustainable Water Management
Location: Sonoran Institute, August 30 Time: 7:30 p.m. -Ref: Dr. Peter Glieck will discuss sustainable and comparative water
policies.
later CASA Conference-Friday,September 21,2007 RSVP:I. Chaparro or Mr.Saletta for reservations
_oard/Commission Training- Saturday,September 22,2007,RSVP:J.Jones
-Mayor's State of the Town - September 20, 2007 - Luncheon Location: El Conquistador Resort, RSVP: I. Chaparro or Mr.
Saletta for reservations
-Upcoming Town Council meetings - September 5 &September 19,2007
Commissioner Calabro expressed concern about the washes (concrete headers) and its conditions. He also indicated that a 6"
main broke while the wash was running at the golf course and a substantial amount of water was lost. He asked Staff who
could be responsible for fixing the concrete headers.Mr.Ruiz indicated that he would contact Public Works Storm Water,Phil
Trenary.
FUTURE AGENDA ITEMS
1.Approval August 20,2007 Minutes
NEXT MEETING:September 10,2007 Location:Hopi Conference room
Chair Powell entertained a motion to adjourn the meeting.
MOTION: Vice Chair Tustison MOVED to adjourn the meeting. Commissioner Hoffman SECONDED the
motion.MOTION PASSED:Unanimously.
ADJOURNMENT:7:30 p.m
Prepared by,
Lk- C-ka-- a-,Le---"Cm
Ins L. Chaparro
5