HomeMy WebLinkAboutMinutes - Water Utility Commission - 12/10/2007 nrrtffi1 °)MINUTES I„ 1
111 OVIE
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SE SSI ON ITEM
DECEMBER 10,2007 ------
HOPI CONFERENCE ROOM
11,000 N.LA CANADA DRIVE #
CALL TO ORDER-AT OR AFTER 6:00 P.M.
ROLL CALL-6:00 P.M.
CALL TO ADUDIENCE -There were no requests to speak.
MEMBERS PRESENT: David Powell,Chair
Winston Tustison,Vice Chair
Rick Davis,Commissioner
Brent Egbert,Commissioner
Elizabeth Shapiro,Commissioner
MEMBERS ABSENT: John Hoffmann,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: Barry Gillaspie,Council Liaison
K.C. Carter,Council member
_ALL TO ORDER-No Speakers
ITEM #1 APPROVAL OF NOVEMBER 13, 2007 MINUTES - Chair Powell entertained a motion for approval of the
November 13,2007 minutes.
MOTION: Commissioner Davis MOVED to approve the November 13, 2007 minutes. Vice Chair Tustison
SECONDED the motion. MOTION PASSED:Unanimously
ITEM #2 PROPOSED CHANGES TO TOWN CODE - WATER CODE - 15-4-3 MEMBERSHIP
COMPOSITION, TERMS AND QUALIFICATIONS - Mr. Saletta indicated that after reviewing the Water Code
Membership Compositionstaff is recommending changes that will allow more flexibility when recruiting volunteers for
positions on the Commission. Mr. Saletta gave a brief explanation regarding the changes. He explained that the proposed
language would combine Commercial and Turf into one representative or an At-Large position which could include a resident.
Although the membership representation and composition has changed, there is still opportunity for turf interest
representation.There are no changes to the selection process.
Staff recommends that the Commission forward the proposed Water Code changes to Council for their consideration at the
January 16th Meeting. The Ordinance would go into effect on February 16th. A Council appointment could be made on
February 20th or March 7th.The new appointee could attend the March WUC meeting.
Vice Chair Tustison indicated that he supported the changes to the Water Code Section 15-4-3 Membership Composition,
Terms and Qualifications.
Further questions and discussion followed regarding:
'ros and Cons of membership composition and effects to the golf course representation and Commission vacancies.
-Golf course representatives were contacted regarding this proposed change- D.Maes,T. Todd and S.Devereau,R.Neuman,
G. Calabro.
12-10-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
-WUC Application Retention Period-Two of the recent applicants to the WUC could be considered for the at-large position.
There were no further questions or discussions. There were no interested parties in attendance and no requests from the
audience to speak on this item.
Mr.Saletta ended his report.
MOTION: Commissioner Shapiro MOVED to forward the proposed changes to the Town Code-Water Code
15-4-3 Membership Composition, Terms and Qualification to the Town Council for their consideration.
Commissioner Davis SECONDED the motion.MOTION PASSED:Unanimously.
ITEM #3 -WATER RATES ANALYSIS AND SCHEDULE - Vice Chair Tustison reported that the Finance
Subcommittee met November 20th and then asked Ms.Seng to report on that meeting.The following items were discussed:
-Water Rate Process/Time Frame
-Rate Setting Issues: Water Rate Review, Groundwater Preservation Fee,Meter Fees, Construction Fees,Engineering
Design Fees
-Compile Data: Staff compiles actual expenditures first 6 months of the current fiscal year along with projections for
the next 6 months of the Fiscal Year. This will be done in December, 2007 and used in the Rates Analysis and
Scenarios.
-Expenditure Projection Factors: -The following items will be taken into consideration for the Rates Analysis:
Inflation, Personnel (new employees, cost of living), WIFA Loan Repayment, Tucson Electric Power Rate Increases,
Central Arizona Groundwater Replenishment District cost, 2008/09 Bonding for existing system improvements,
Reclaimed Water Costs,Revised Debt Service for CAP Allocation and CAP Water Costs.
-Revenue Stream:Meter Fees- Implement automatic meter reading technology for new meter installations.
-Tentative Rates Schedule
• Town Council Study Session and WUC Approval:March 2008
• Town Council:Adoption of Intent to Increase Rates April 2008
• Public Hearing Schedule:May 2008 - Town Council Adoption of Rates:June 2008
• Rates Effective:July/August 2008 (30 Days after T.C.Adoption)
Ms. Seng indicated that the Finance Subcommittee will be having frequent meetings. She thanked Vice Chair Tustison and
Commissioner Shapiro for devoting their time to the meetings. Ms Seng also mentioned that the Subcommittee has discussed
other timing options for rates, however the Finance Subcommittee will require further consideration prior to bringing it back
tote Commission.
An answer and question occurred:
-Personnel/Cost of Living(Chair Powell)
-Water Revenue Stream and Water Utility Employee Salaries (Commissioner Shapiro)
-Adoption of Model Irrigation Landscape Ordinance for Commercial(Commissioner Davis)
A brief discussion occurred regarding borrowing monies from the Town of Oro Valley's General Fund totemporarily
compensate the Utility's Enterprise Fund.Ms. Seng explained that the only time the Utility borrowed money from the General
Fund was to kick off the Commercial Readiness Program to built (e.g. Rooney Ranch). Since then, the Utility has repaid the
loan including interest.
There were no further questions Ms.Seng ended her report. No Action was taken or required on this item.
ITEM#4- UPDATE ON POTABLE WATER SYSTEM- Mr.Jacklitch gave a report on Capital Projects
-Town of Oro Valley Potable Water System Master Plan 2006 - 2015: The Infrastructure Cost Projections Detail
chart in the Master Plan is a guideline for the Utility's Capital Program for wells, reservoirs, booster stations and
mains.
-xisting System Improvements were discussed regarding some of the current costs associated with these Capital Projects and
that existing system improvements are paid by revenues from water rates. Expansion Related Improvements were also
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12-10-07 MINUTES,ORO VALLEY WATER UTILITY COMMISSION
discussed and at this time no bonds will be sold for expansion related improvements. Expansion projects are paid by the
Potable Water System Development Impact Fees.
An answer and question occurred:
-Cost projections for 2007-2015 Included a 4.5 percent inflation factor(Chair Powell).
-Existing System Improvements Totals\Year to Year Variation(Vice Chair Tustison).
-Incorporation of CAP Water Delivery (Commissioner Egbert). System Improvements are compatible with the
development of CAP Water. These include: The 16-Inch East Tortolita G-Zone Main; J-Zone, K-Zone and East
Tortolita (T-Zone) boosters; Chalk Creek Reservoir (0.5 MG), North Oracle Reservoir (1.0 MG \) and State Land
Reservoir (0.5 MG-if annexation occurs.) Mr. Ruiz explained that the Utility would be working on a modeling plan
for CAP delivery.
-CAP Pipeline and Public Right-of-Way (Commissioner Egbert). It was discussed that access to ROW and
easements will need to be acquired for the CAP Water Delivery System.
Mr. Saletta explained that the list was prepared by Staff and will be revised in 2009. It is up to management to prioritize and
determine which projects are needed and financially when they can be accomplished and if funds are available.
Mr.Jacklitch gave a report on current projects.
=Reservoirs: Pusch Ridge Reservoir -Stone Canyon
-Construction Project:-Pusch View Lane Bridge Location:Rockridge Apartments Construction Date:January 2008
-Bid Opening: Pipeline Modifications Oracle Road (ADOT right of way) Construction Date:February 2008
-Design Projects:See Projects listed on the Cost Projection Chart
-Slowsand Filter Pilot Study: Project meeting scheduled Wednesday,December 12th.The draft report will be available
to staff by next Monday,December 17th.
There were no further questions Mr.Jacklitch ended his report.
Mr.Ruiz reported on the Potable Water System:
Peak Daily Demand Reservoir Storage November 2007: Potable Water Demand = 8.5 mgd -Temperature: One 90 degree
..lay -Demand Declines =6.0 mgd- (November 30th) -Increased Precipitation =2.0 inches- (November 29th)
-Daily Demand Reservoir Storage November 2007: Overall Reservoir Storage =Average above 6.0 mgd
-Potable Demand decreases (Golf courses reduce over seeding.)
ITEM#5 UPDATE ON RECLAIMED WATER SYSTEM-Mr.Ruiz reported the following:
-Reclaimed Water Phase I: November 2007 -Year Total Usage =487,658,000 gal. Demand =27,250,000 mgd (Significant
decrease)
-Reclaimed Water Phase II: Projects: El Conquistador Golf course pond relining, La Canada Pipeline, Painted Sky
Elementary School.
-North Pond Relining: On November 26th a Notice to Proceed was issued for the pond relining. Currently, North pond is
down however distributor Rain for Rent is supplying the golf course with water to help with irrigation water while the pond is
under construction. The North pond reline will be finished by January 08,immediately following this project the South pond
project will begin.
-La Canada Pipeline: Construction Schedule: January 27, 2008. The Water Utility is coordinating this project with Public
Works roadway project beginning January 7,2008.Public Outreach: The general public has been notified about these ongoing
projects.
-Painted Sky Elementary. Construction Schedule:January 12,2008 (4 month project).Mr. Ruiz felt that by the end of August
2008 Phase II of the Reclaimed Project would be completed.
An answer and question occurred:
-Public Works Coordination\Any Reduction in costs for W.U.pipeline installation(Commissioner Shapiro).
-Potable Water Savings per Year (Vice Chair Tustison). (Savings = 1000 a/f per year. Overall Savings = 2500 a/f
Reclaimed Phase I &Phase II)
There were no further questions Mr.Ruiz concluded his report.
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12-10-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Mr.Saletta gave a brief report on the Tucson Water Intergovernmental Agreement.
- December 17th Meeting is scheduled and D. Modeer, D. Rule, S. Elder and OVWU Staff: P. Saletta and D. Ruiz
plan to attend.
-The following items will be discussed O.V. Capital Investment,Tucson Water Rates,and whether there should be an
Addendum,Amendment or a new IGA agreement.
-The WIFA Loan was also discussed and that the loan payments will be included in the five-year rate projections.Staff
will submit its first request for the loan proceeds in January 2008.This will include:legal,financial,design,engineering
costs,and the first(December,2007) invoice for from the north pond construction.
-Reclaimed Water Acknowledgements and Thanks: David Ruiz, Public Works, Hilton El Conquistador specifically
George Calabro and Rick Newman,and Amphitheater School District-Painted Sky Elementary.
In answer to Chair Powell question regarding the WIFA Loan savings,Mr. Saletta explained that a minimum of 1/%to 1% or
perhaps a full percentage point could be saved. No closing fees are included. Chair Powell pointed out the costs savings for
the WIFA Loan would be considerable as opposed to bonding.
There were no further questions Mr.Saletta concluded his report.
ITEM#6 UPDATE ON NORTHWEST WATER PROVIDERS-Mr.Saletta reported the following:
-Carob Engineers: Still working on cost estimates for CAP pipeline alignment alternatives. A brief description was given
about the concept for the pipeline alternatives. The cost for this study is $10,000 and will be divided by the Northwest
Partners each based on a prorated percentage of their CAP Water.
-Northwest Reliability Reservoir: As part of the CAP delivery system, Oro Valley and the other NW Water providers may
need as much as 47 days of storage off the CAP canal. Originally, $90,000,000 was budgeted by Reclamation. This included
the entire Pima County area however, since then the Northwest providers would like its own reliability storage in the
Northwest area. The Bureau of Reclamation and Central Arizona Water Conservation District are investigating whether other
projects for reliability storage exist in the Pima County area for CAP subcontractors. A report will be compiled and possibly
:ompleted by July 2008. Mr. Saletta gave a brief explanation about the Federal Government budget contribution and the
partners repayment responsibilities.The reservoir would be sized based upon the canal's maintenance and shutdown schedule.
An answer and question occurred:
-O.V.Future N.W.Reliability Reservoir Storage Capacity\Over 47 day shut down(Commissioner Davis)
-Major CAP Canal Shutdown Period is generally in October(Chair Powell)
-O.V. CAP Control Center - A similar control panel would be built by the NW Water Providers to monitor and
control pipeline deliveries. (Commissioner Shapiro)
There were no further questions Mr.Saletta concluded his report.
TOWN COUNCIL MEETINGS/COMMUNICATIONS- (Council Member K.C. Carter)
Council member Carter asked about a meeting at the City of Tucson. Mr. Saletta indicated there would be a City of Tucson
Town Council Study Session meeting on December 11th. regarding the possibility of a Regional Study and that, he would be
attending. Mr. Saletta stated that Town Council approved the Exempt Well Policy.
Town Council Liaison Gillaspie also reported that the Town is moving forward with all negotiations with the State Ref: Land
north of Sun City up to the Pima and Pinal County line. He also indicated that within a year the Town would be in a position
to amend the Oro Valley General Plan if the conceptual plans for annexation are successful.
SUBCOMMITEE REPORTS- Chair Powell reported the following
-Water Conservation Subcommittee: Chair Powell appointed Mr. Davis as member to the Subcommittee. Chair: Mr.
Egbert. Subcommittee Tasks: Public Education
-Finance Subcommittee: Chair-W.Tustison Commission Member: B. Shapiro Scheduled Meeting:
January 08
-Renewable Water Resources: Chair-J.Hoffmann Temporary Commission Member:D.Powell
There were no further reports.
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12-10-07 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
STAFF REPORTS - Mr. Peterson reported that in 1985 when CAP began its meeting one of the major issues was the
repayment to the Federal Government for the construction of the CAP Canal. He explained several other issues complicating
the repayment process for the CAP Canal.Mr.Peterson was pleased to report that in the past week all the outstanding issues
had been settled. The Federal Government and the Secretary of the Interior has signed and verified the final amount of CAP
Repayment obligation to be paid by the state of Arizona. There were no further reports.
DIRECTOR'S REPORTS-Philip Saletta
-Upcoming Meetings: Tucson City Study Session-December 11th Topic:Regional Study -Southern Arizona Water
Users Association-December 18th -T.C.Meeting- December 19th - Northwest Water Providers Management
December 20th -Volunteer Recognition Celebration-December 13th
-Water Development Fees List - Commissioner Shapiro requested a list of all existing Impact fees and the projects
they support.Mr.Saletta will direct staff to create a list for the next Commission meeting.
FUTURE AGENDA ITEMS
1. Approval December 10,2007 Minutes
CALL TO AUDIENCE -There were no requests to speak.
NEXT MEETING:January 14,2008 Location:Hopi Conference Room
Chair Powell entertained a motion to adjourn the meeting
MOTION: Vice Chair Tustison MOVED to adjourn the meeting. Commissioner Shapiro SECONDED the
motion.MOTION PASSED:Unanimously
ADJOURNMENT: 7:30 P.M.
Prepared by,
C/4"6"
Iris L.Chap arro
Senior Office Specialist
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