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HomeMy WebLinkAboutMinutes - Water Utility Commission - 9/10/2007 la-13-07 A0F1,0 , MINUTES ORO VALLEY WATER UTILITY COMMISSIONL.111Y REGULAR SESSION a..._ SEPTEMBER 10,2007 HOPI CONFERENCE ROOM r 11,000 N.LA CANADA DRIVE CALL TO ORDER-AT OR AFTER 6:00 P.M. ROLL CALL- 6:10 P.M. MEMBERS PRESENT: Winston Tustison,Vice Chair George Calabro,Commissioner John Hoffman,Commissioner Elizabeth Shapiro,Commissioner MEMBERS ABSENT: David Powell,Chair Brent Egbert,Commissioner STAFF PRESENT: Philip C. Saletta,Water Utility Director Shirley Seng,Utility Administrator David Ruiz,Engineering Division Administrator Jim Peterson,Water Utility Regional Coordinator OTHERS: Barry Gillaspie,Council liaison K.C. Carter,Council member 'TEM#1 APPROVAL OF AUGUST 20,2007 MINUTES-Vice Chair Tustison entertained a motion for approval of the august 20,2007 minutes. MOTION: Commissioner Calabro MOVED to approve the August 20, 2007 minutes. Commissioner Hoffman SECONDED the motion.MOTION PASSED:Unanimously ITEM #2 - DROUGHT PRE PARE DNE SS PLAN - Mr. McCaleb, Water Conservation Specialist announced his resignation and mentioned that he was moving to Oregon. He indicated it was a pleasure working with the Commission and Staff. He proceeded to report on the drought conditions. • Total Accumulated Precipitation as of September 30,2007: 10:33 Inches • End of Current Water Year September 30,2007 Accepted Normal Accumulations: 10.83 Inches • Temperature: As of September 7,2007,there were 65 days of temperatures equaling or exceeding 98 degrees during the past 3-month period. (Calculated from U of A station at Campbell&River Rd. • U.S.Drought Monitor Status:N.O.A.A.lists this region of Arizona as a Level 1 or moderate drought status. • Aquifer Water Levels:As of February 2007,water level declines for calendar year 2006 average 2.6 feet. Mr. McCaleb explained that the only category that would restrict Oro Valley from moving into Drought 1 level would be the temperature. There were no further questions Mr.McCaleb ended his report. Mr. Saletta pointed out a Draft memorandum to Town Council referencing Changes to Stage 1 Drought from a Stage 2 Drought.He indicated the Stage 1 Actions: • Residential Customers (Category A) using in excess of 4,000 gallons continue to reduce usage • Commercial Customers (Category B) Encourage voluntary reduction in landscape watering by 10% • Reclaimed Customers (Category C) Encourage voluntary reduction in landscape watering by 5% • Watering period 7 a.m.- 7 p.m. eliminated. Customers will be requested not to water during the hottest period of the day(mid morning- early evening.) 9:10-07 t MINUTES, ORO VALLEY WATER UTILITY COMMISSION Mr. Saletta quoted the following statement: "Although this last year has had an average amount of rainfall, the long-term drought in the southwestern part of the country still persists." Questions and answers occurred: -Drought Conditions Reevaluation (j. Hoffman). Mr. Saletta explained that no formal decision was made about when to reevaluate drought conditions,however drought conditions would probably be reviewed quarterly. Commissioner Calabro said it would be difficult for the El Conquistador Golf Course not to water during the day because of the over seeding season. Mr. McCaleb mentioned that several golf courses were using reclaimed water and that El Conquistador is on a computerized system which helps conserve water. He recognized that the golf courses were doing the best they could to conserve water. There being no further questions Mr.Saletta and Mr.McCaleb ended their report. Vice Chair Tustison thanked Mr. McCaleb on behalf of the Commission for his work on the Drought Preparedness Plan and the Conservation Program. ITEM#3 -EXEMPT WELLS AND WATER SERVICE AREA- Mr. Saletta reported on Mr. Zappia letter Ref: 1115 N. Desert Whisper Way..Operational Exempt Well. Mr. Saletta explained that Mr. Zappia requested a permit for an exempt well from ADWR within a platted developed area in Oro Valley. Oro Valley Water Response Letter: The Utility has an 8" water line owned and operated by Oro Valley Water the line is less than 100 feet from his property. State of Arizona Law states if a line is less than 100 feet from the property than the owner is not allowed to get a well permit,and they must tie into the existing provider's water service line unless there are circumstances where service cannot be provided. The Utility has informed Mr. Zappia that water service is available from Oro Valley Water Utility. Mr. Saletta proceeded to read Arizona Department of Resources policy regarding Exempt Wells. He believed that ander the ADWR policy a well permit would not be issued. AssuredWater Supply: The Utility Director signs off for assured water supply on approved plats. Mr. Saletta gave a brief explanation about granting exempt well permits. An answer and question occurred. Commissioner Shapiro asked about platted areas outside the Active Management Areas/Assured water supply and Oro Valley's adequate water supply. Mr. Saletta pointed out the three active management areas: Phoenix AMA, Tucson AMA,and Pinal AMA. Outside of Active Management Areas, an Assured Water supply is not required. Mr. Saletta explained that Assured Water Supply is provided only to Oro Valley's water service areas. In answer to Commissioner Shapiro's question Mr.Saletta also explained that any areas outside the AMA(Active Management Area) water providers do not have to file for an Assured Water Supply Designation. Commissioner Calabro asked if there were any limitations to Oro Valley Country Club golf courses well water and how much could be drawn. Mr. Saletta explained that the wells were preexisting and had a Type II permit irrigation right. Commissioner Calabro asked about restrictions on preexisting wells. Mr. Saletta indicated that they would have to stay within their permit in terms of flow and water right. Commissioner Hoffman suggested having some information or documentation about Arizona's Water Law.Mr. Saletta would try to obtain publications about the Assured Water Supply Program. There were no further questions Mr.Saletta ended his report. rE M #4 PRESENTATION AND UPDATE REGARDING NORTHWEST WATER PROVIDERS AND iENTRAL ARIZONA PROJECT WATER DEVELOPMENT- Mr. Saletta indicated that Warren Tenney from Metro Water provided the information for the N.W.Providers &CAP Water Development: 2 9:10-07 MINUTES,ORO VALLEY WATER UTILITY COMMISSION • Participants:Flowing Wells,Marana,Metro Water and Oro Valley Water • Map 2000 CAP Alternative Delivery: Location: I-10 8E Tangerine Rd. Delivery Designation: Town of Marana, Oro Valley and Metropolitan Water District.Explanation:Delivery alternatives • Objective -Treatment and Delivery of CAP Water in 2012 - A detailed breakdown was given regarding CAP water delivery and the participants. • Northwest Central Arizona Project Water Treatment &Delivery System- The Bureau of Reclamation will fund the reservoir. All capital costs will be part of the Central Arizona Water Treatment Project and will be paid under their reliability storage. • Water Management Objectives - Use Renewable Supply and Not Rely on Groundwater -Using our Renewable Supplies • Groundwater Pumping:Groundwater Levels over 5 years -Drought -Impact of continued groundwater pumping • Renewable Water Resource Central Arizona Project Water.Allocations of Central Arizona Project Water • Northwest Providers and Use of CAP Water: Recharged at groundwater savings projects and constructed recharge projects (paper water) -Obtained valuable credits (paper water) -Except for Marana, not directly used within our service areas 8E aquifer or areas of hydrological impact(wet water). • How to Use CAP Allocations? - Early 1990s - Northwest Replenishment Program -Alternatives for Using CAP Water in the NW Tucson Area,August 2000-Study with U.S.Bureau of Reclamation - Conclusion • How to Use CAP Allocations? -Pilot Investigation of Slow Sand Filtration and Reverse Osmosis Treatment of CAP Water -Follow up S8E!'Grant Study- A brief description was given regarding the reverse osmosis treatment process and halophytes plants. Commissioner Calabro mentioned that the golf courses were thinking about changing their grass to something more salt tolerant. • Northwest Central Arizona Project Water Treatment&Delivery System • Project Needs: 1.Resources 2.Infrastructure 3.Finances 4. Partnerships 5.Environmental 6.Public Relations • Finances:Cost Estimate Study provided by Carollo Engineers Financial Analysis:Stone&Youngberg • Cost Estimate Study: -Determine the Cost to Treat & Deliver CAP water to the Northwest Providers: A brief discussion occurred regarding TDS Levels -Treatment&R.O. -Concentrate Management -Delivery System • Conservative Cost Estimate Used for Financial Analysis: -Baseline Parameters -1St Phase- 191,000,000 _2nd Phase- $84,000,000 • Financial Analysis:-A costs description was given regarding the N.W.Providers based on volume for CAP delivery • Financial Analysis Phase 1: -Estimated Total Debt Service: Oro Valley($120,429M) • Financial Analysis Phase 2:- Oro Valley($52.2091V1) • Partnership Options: -Right Structure for Financing 8c Management -Guidelines -Special Authority of District -IGA Non-Profit Corporation -IGA-Joint Exercise of Power Agreement: Most feasible option • Next Steps: -Partnership Options -Public Relations Mr.Saletta indicated that Staff would be meeting with CAWCD week of September 17th to discuss the reliability reservoir and environmental issues. An answer and question occurred. -CAP Presentation to Public (W.Tustison):Mr.Saletta indicated that Oro Valley was ready to make a CAP presentation to the public however;it would be presented to Town Council first. -Payment of N.W Reliability Reservoir (W. Tustison): Mr. Saletta explained that the plans are to have the Bureau of Reclamation build the reservoir and have the costs incorporated to the Central Arizona Project finance repayment plan. Mr. Peterson gave a brief history about the building of the canal pumping stations from Havasu to Phoenix and that CAP staff was prepared to review all the agreements and the financial implications to CAP. -O.V. CAP Water Use and Treatment (G. Calabro): Mr. Saletta explained that a portion of Oro Valley's CAP allocation was 'elivered to Kai Farms recharge area and that the Town receives paper credits. Mr. Ruiz gave a brief explanation about ucson Water recharge/recovery facility and delivery. 3 9-10-07 . MINUTES,ORO VALLEY WATER UTILITY COMMISSION -CAP Water versus Groundwater Quality(B. Shapiro): Mr. Ruiz explained the design of Tucson Water's recovery wells and mixing of CAP water(high TDS level).He explained that with the clear well reservoir they have onep oint of introduction into the system,which provides the chance to bring in ground water in order to reduce'IDSotal Dissolved Solid))levels. There were no further questions Mr.Saletta ended his report. ITEM #5 ALTERNATIVE WATER RESOURCE DEVELOPMENT IMPACT FEE WORKING GROUP - Mr. Saletta gave a summary of the meeting: • AWRDIF Working Group- The working group was appointed by the Town Manager and approved by Town Council. • Meeting date: September 6, 2007 -Working Group Participants: Citizen representative, Erin Fischer, Staff representatives:-Stacey Lemos -Philip Saletta -Shirley Seng -David Andrews,Town Manager Council Representative - Barry Gillaspie, Commision Representative - Winston Tustison -SABHA representatives: Alex Hocheme &Bob Logan -Representatives from Tucson Association of Realtors - Anne Mehachko - Metropolitan Pima Alliance-Ramon Gaanderse • Scope of work- Monitor the impact fees process and continue dialogue with the development community. • Overview of AWRDIF- Discussions: 5 increment phase in approach -Future Costs -Balance between new development&existing customers based upon 5500 a/f of sustainable groundwater production -N.W. Water Providers -CAP Water&Renewable Water Resources -Tucson Water participation -Community Facilities District (SAT-lEA believes this option would only work for large residential development areas) • Next Meeting:November 15th Topic- Community Facilities District Council member Gillaspie indicated that there may not be many more discussions about the Community Facilities District but there were still significant outstanding issues about the current costs to non-participating future customers. Vice Chair Tustison thanked Mr. Saletta for his presentation and mentioned that Mr. Fischer was also impressed with staff's information and was perplexed as to why the meeting was taking place. Iliere were no further questions Mr.Saletta ended his report. ITEM #6 RECLAIMED WATER INTERGOVERNMENTAL AGREEMENT WITH CITY OF TUCSON Mr. Saletta gave a brief power point presentation: Handout - Letter from David Modeer,Director of Tucson Water Ref: IGA- Reclaimed Water Service to the Town of Oro Valley.Mr.Saletta gave a brief Power Point Presentation: • TW Letter-Agreement with Oro Valley expires October 31,2010 (Addendum 1 to IGA) -Begin Negotiations -Dove Mountain intends to develop 5 golf courses -Crooked Tree GC- Pima County deliveries -Existing Reclaimed Water System Limitations -New Infrastructure required • Settlement Agreement: -'IW Assignment of Effluent to Oro Valley -Assignment of CAP Entitlement • Addendum 1 to IGA October 27,2003: -Design and Construction of Facilities • Issues: -Letter notifies OV that Dove Mountain will build 90 holes -O&M Payment: O.V.has a payment for non- interruptible oninterruptible water supply for 5 years for the reclaimed system.O.V.must have an IGA in place for the non-interruptible rate before the five-year period expiration deadline. • Interruptible Rate Increase: -Non-interruptible rate ca .94(t per 1000 gal. -Current Non-Interruptible Rate$2.14p er 1000 gal. (without additional capital expansion,debt service&O&M will increase) • Next Steps: -Send response letter to TW informing them of our intentions to negotiate rate -Negotiations with TW -Plan for 3.75 MGD of Reclaimed Water Commissioner Calabro and Commissioner Hoffman requested a better explanation about the interruptible rate. Mr. Saletta explained that if Oro Valley did not obtain a firm supply of reclaimed water Tucson Water had the P right to comply with other g ^ustomer demands. They do not have to construct any capital expansion projects for interruptible water customers therefore .liveries could be provided whenever possible. 4 9710-07 . MINUTES, ORO VALLEY WATER UTILITY COMMISSION Mr. Saletta indicated that the Intergovernmental Agreement must be in place by the end of 2009, unless the Commission directs Staff to assess other levels of risk for reclaimed water deliveries.Staff will continue negotiations with Tucson Water. Mr. Ruiz gave a brief explanation about the reclaimed water reservoir backup system and when demand exceeds the reclaim supply. There were no further questions Mr.Saletta ended his report. SUB COMMITE E REPORTS- No reports. STAFF REPORTS-Ms.Seng reported the following: Update and Implementation of Impact Fees and Water Rates - Potable Water Rates were effective August 18. Oro Valley customers will experience increases in their October bills. The water rates are adopted via Town Resolution.The Water Utility software billing program has been changed to accommodate the rate changes. -Impact Fees: The Impact fees become effective Wednesday, September 19th and will be placed in the Town Code the same day. -Meter Installation: The Utility has experienced a significant increase in meter installations because of the impact fees increases. Capital Projects - Mr.Ruiz reported the following: -Pusch Ridge Reservoir: Storage Capacity= 500,000 gal. Location: East side of Oracle Rd. Reservoir is on line and mainly serving customers eastside of Oracle -Water Plant 15: Location: Stone Canyon.The water plant will probably be on line the first week of October. -E-Zone Reservoir: This reservoir is under design. Storage Capacity = 1,000,000 gal. Construction Schedule: Next FY 2008 -Location: King Air and Moore Road. Mr. Ruiz indicated that by constructing these infrastructures the Utility will have a significant reliable storage system which increases pressure. -Slowsand Pilot Program:A V-Cep laboratory system will be installed down stream of the R.O. (Reverse Osmosis). notable Water System Status -Peak Daily Demand Reservoir Storage August 2007: The Utility's reservoir system did not experience high water s. demand g -Peak Daily Demand August 2007: Oro Valley experienced six rain events during the month of August therefore the demand on the potable water system decreased.Peak Daily Demand Average: 6MM- 7MM gal.per day Reclaimed Water System Status -Reclaimed Water Phase I:August Usage =40,751,000 gal.per day Total Usage =353,269,000 -Reclaimed Phase II: Bidding Phase is underway for Phase II. Three major projects - 1. Relining of El Conquistador Golf course pond(Bid Date:October 2) 2.Painted Sky Elementary School Ground Irrigation(Bid Date:October 15) 3.La Canada Pipeline Project(Bid Date:October 15) Construction Schedule:Beginning December Mr.Ruiz ended his report. TOWN COUNCIL MEETINGS/COMMUNICATIONS Council member Carter asked about including the Pusch View well into the Reclaimed Phase II bid process. Mr. Ruiz explained that the Pusch View project was unusual project because it involved building a bridge over a drainage way in order to access the property and construction of the well. He explained that the bids were rejected because they were extremely high. Staff is currently advertising for the bridge project. Council member Carter mentioned that the Council would be very interested about the results of the Tucson Water IGA negotiations. DIRECTOR'S REPORTS-Mr.Saletta reported the following: -Update on Water Utility Commission Member Vacancy The Utility received seven applications and will be interviewing 3-4 applicants.Interview Panel: Chair Powell,Council member Gillaspie and Water Utility Director. iitizens Planning Institute Training: Commissioner's Hoffman and Calabro were encouraged to register for training. All fees will be paid by the Town. Classes scheduled October 4th. 5 9-,10-07, MINUTES,ORO VALLEY WATER UTILITY COMMISSION ON -Upcoming Meetings - 9/19: T.C. Meeting. Staff will be presenting the following items for approval: Water Code Changes - Reclaimed Water Agreement (Approval for Director to sign water user agreements) -9/20:State of Town Luncheon: Four Commissioners attending9/21:WaterCasa Conference: (Attending: Commissioner Shapiro,Staff:P.Saletta) 9/22:Board&Commission training. Mr.Saletta ended his report. FUTURE AGENDA ITEMS 1.Approval September 10,2007 Minutes NEXT MEETING: October 8,2007 Location:Hopi Conference Room Vice Chair Tustison entertained a motion to adjourn the meeting. MOTION: Commissioner Shapiro MOVED to adjourn the meeting. Commissioner Calabro SECONDED the motion.MOTION PASSED:Unanimously ADJOURNMENT: 8:15 P.M. Prepared by, 114: Ciez-,W,r) Iris L.Chaparro Office Specialist 6