HomeMy WebLinkAboutMinutes - Water Utility Commission - 1/12/2009 • .• itt1 ' ff try,- .,1 . MINUTES ORO VALLEY WATER UTILITY COMMISSION MONDAY, JANUARY 12, 2009 HOPI CONFERENCE ROOM &PREYED 11000 N. LA CANADA DRIVE (gict 1°1 - ) CALL TO ORDER AT 6:00 P.M. ROLL CALL PRESENT: Dave Powell, Chair Richard C. Davis, Commissioner John P. Hoffmann, Commissioner Robert Milkey, Commissioner Elizabeth Shapiro, Commissioner ABSENT: Sue L. Novelli, Commissioner Winston Tustison, Vice Chair STAFF: P. Saletta, Water Utility Director S. Seng, Utility Administrator D. Ruiz, Engineering Division Manager R. Jacklitch, Project Manager J. Peterson, Water Utility Regional Coordinator OTHERS: K.C. Carter, Council Member Salette Latas, Council Member David Andrews, Town Manager Doug McKee, Resident CALL TO AUDIENCE Resident Doug McKee spoke on the need for the Town to use its CAP allotment as soon as possible. Resident Art Wiese suggested billing inserts to remind the homeowners and homeowner associations to cease irrigation during winter months. Resident Barbara Malecki, board member of Vistoso Village Homeowners Association, spoke about her association's irrigation system changes and wanted to know what will happen to the water rates if everyone conserves water. 1. APPROVAL DECEMBER 8, 2008 MINUTES MOTION: Commissioners Milkey and Hoffman requested a couple of minor changes to the minutes. A motion was made by Commissioner Milkey to approve the minutes as amended during discussion. Commissioner Davis seconded the motion. Motion carried, 5-0. 1/1.2/09 Minutes, Oro Valley Water Utility Commission 2. TOWN MANAGER UPDATE T5wn ► Yer David Andrews addressed the Commission to provide a brief update on some A h n going on in the Town. There were 3 major topics: Arroyo Grande, CAP water, ante ItisitiM and Commerce within the Town. Arroyo Grande: ➢ Arroyo Grande is the State Land north of the Town, 9100 acres, approximately 14 square miles ➢ Council approved the General Plan Amendment in November or December 2008. ➢ Town is drafting a Pre-Annexation Development Agreement (PADA) and negotiations will begin with the State Land Department ➢ State Land Commissioner is concerned about hard zoning, water and sewer issues ➢ State Land Commission is being asked to abandon conceptual plan from original approval Town's concerns: ➢ Water supply is a significant issue and the Town will be asking for portion of State's CAP allocation attributed to that portion of land that may be annexed. ➢ Open space—must remain at 68% Commission Hoffman asked for a definition of density transfers. Response from Town Manager was that if current zoning is 1 home per 4 acres or 2500 homes per then some areas could be considered for denser development such as 3 homes per acre and some lands could then be considered for open. space. CAP Water: ➢ Cap water will be an integral part of Town's future water supply ➢ Town is working with Metro Water, Town of Marana and Flowing Wells Irrigation District to bring CAP into the Town by 2014 ➢ Town recently increased the Alternative Water Resources Development Impact Fees which will allow for new development to pay its fair share of CAP costs ➢ All residents to pay increase in GPF to pay our share ➢ Major initiative for the Town that everyone supports. Business & Commerce: ➢ Oro Valley Market Place is open for business. It is currently only half developed and may possibly be built out in 2-3 years. ➢ Oracle Crossings at Oracle & Magee is at tail end of their build out. ➢ Ventana Medical Systems looking to double the number of employees and office space within the next 3 to 5 years — Ventana recently bought IBC office space and will be remodeling it ➢ sanofi aventis is building their new office space at a cost of$65-$75 million dollars ➢ Town's finances (General Fund) are not good—worse than it's ever been in 20 years ➢ General Fund revenues are projected to be short by $2.7 million at the end of this fiscal year which is about 10% of total revenue budget. 2 1/12/09 Minutes, Oro Valley Water Utility Commission ➢ Received notification from Arizona League of Cities & Towns that state shared revenues will be down by $700,000 in FY 2009-10 • The Utility Tax will sunset on March 31, 2009 ➢ Projecting that Town will have a very difficult budget year in 2009-10 ➢ There will be a Study Session with Town Council on January 28th to discussing these issues and begin working on how to stabilize the situation. ➢ With regard to the Federal Economic Stimulus, the Town has submitted $575 million in projects of which $315 million is for water projects. Of that, $300 million is for the CAP project. The Town is asking for these funds, but we may not get it. In addition, the Town is asking for $75 million for roadway projects. The Town Manager ended his report. 3. NORTHWEST WATER PROVIDERS CENTRAL ARIZONA PROJECT WATER TREATMENT AND DELIVERY SYSTEM UPDATE Mr. Saletta gave an update on the activities related to the Town and its partners, the Northwest Water Providers (Town of Marana, Metro Water and Flowing Wells Irrigation District). ➢ On January 8, 2009, the Central Arizona Water Conservation District (CAWCD) Board unanimously approved a motion to support reliability storage in the Tucson Area which includes the Northwest Water Providers Reliability Storage Reservoir. This is the first step, but an important one, for moving forward with the federal budgeting process and the design work for the reservoir. The CAWCD's support for this motion is also important with respect to the repayment of the reliability storage reservoir under the CAP Project repayments contract. This is a very important step for the development of the Town's CAP water. ➢ Mr. Saletta provided a copy of the proposed schedule for the federal government for activities related to the reliability storage in the Tucson area. It fits well with the proposed schedule for the Northwest Water Providers treatment and delivery of CAP water. The schedule reflects that the design, environmental work and construction will meet the projected 2014 timeframe for the Northwest Water Providers CAP Treatment and Delivery System. Mr. Eric Holler of the U.S. Bureau of Reclamation (USBR) has informed the Town that there is a 2 year lead time for federal budgeting. $2 million has already been requested for. the NEPA, EIS and land work. Based on the Town's schedule, a request for federal funding would need to be made in the 2010-2011 timeframe for construction to begin in 2013. The Town would like to move along parallel tracks with the -USBR in constructing the treatment and delivery project and the reliability storage project. It is important that all budgets be in place prior to construction. We could be flexible for the first year if the reservoir is not completed on time, but not very flexible after that. ➢ Under Task 2 of the Routing Analysis, the Northwest Water Providers looked at numerous pipeline routes and have narrowed it down to 2 alternatives. Task 3 is in draft form and is being reviewed. The costs for the 2 top alternatives B2 and C are being reviewed and broken down into the various segments to determine the cost for each partner that is participating in a particular segment. After reviewing the draft internally, we plan to meet with the consultants in late January. 3 1/12/09 Minutes, Oro Valley Water Utility Commission Other activities include the Slow Sand Filtration/Reverse Osmosis (SSF/RO) water quality testing. Mr. Robert Jacklitch provided a brief update on this process. We are evaluating slowsand filtration, concentrate management, VSEP and micro- filtration. Mr. Saletta commented on the partners for this pilot project: University of Arizona, the USBR, CAP and the 4 Northwest Water Providers. Mr. Ruiz commented that this pilot project to help us refine and select a treatment process for CAP water. ➢ The Northwest Managers are meeting this week to further discuss public process and governance IGA. Commissioner Milkey inquired about land acquisition for the facilities. Mr. Saletta responded that most of the required land would be in federal right-of-way, but it may be necessary to acquire state right-of-way and/or private land. Commission Davis inquired about the location of SSF/RO pilot project. Mr. Jacklitch responded that the pilot project is located near Interstate 10 and Tangerine Road. Commissioner Shapiro inquired about Tucson Water's treatment process for CAP water. Mr. Saletta responded that Tucson is currently recharging CAP water and then recovering it through wells located adjacent to their recharge facility. Commissioner Milkey inquired about the criteria for choice of pipeline route. Mr. Saletta responded that there were 3 main criteria: environmental issues, right-of-way issues and costs. Chair Powell stated that alternative C looked less expensive than alternative B2. Mr. Saletta stated that we will have to pump water uphill regardless of the route; however, it would be less expensive for the pipe itself. Commission Milkey commented on the pressure zones that would be involved in the 2 alternatives which would have a cost impact. Commissioner Milkey inquired as to whether we would be considering operating and maintenance costs when making a decision on an alternative route. Mr. Saletta responded that that would be a consideration and is included in the project life cycle costs. Commissioner Milkey inquired if the pipeline design would include growth factors. Mr. Saletta responded that there would be some capacity for growth. Mr. Ruiz added that the design would include additional capacity for peak demand and growth. Commissioner Shapiro inquired if this water would be in a pipeline rather than recharged. Mr. Saletta confirmed that we would deliver treated water in a pipeline. Commissioner Milkey inquired about additional CAP allotment and costs for increased pipeline. Mr. Ruiz responded that increased costs would be incremental based on the size of the pipe and would dramatically increase the volume of water that could flow through the pipe. Mr. Jim Peterson commented that the Utility needed to continue with planning so that there was continuity in each meeting. He stated that the Town should have CAP representative at the Northwest Water Provider meetings so that the CAP staff would be aware of our progress. 4 1/12/09 Minutes, Oro Valley Water Utility Commission He also stated that funding for the reliability storage reservoir was approved but not yet appropriated in the federal budget. Mr. Saletta commented that the Town currently uses its CAP water allocation by recharging it at Kai Farms. We have also recently acquired permits for other recharge facilities. Last year Oro Valley stored 4200 acre feet of CAP water and this year we plan on storing 4000 acre feet. Commission Milkey inquired as to how we could effectively advocate our needs to the federal government's budgeting system and what could citizens do to help keep the funding on track. Mr. Saletta responded that we could talk to state and federal legislators. He also stated that the support we have received from CAWCD is important and that we have been using an Arizona based lobbyist on a part time basis through the Northwest Water Providers. It would also be beneficial to get our own Council and Commission members involved. There being no further comments or questions, Mr. Saletta ended his report. 4. ARIZONA DEPARTMENT OF WATER RESOURCES GALLONS PER CAPITAL PER DAY NOTIFICATION LETTER Mr. Saletta gave an update on the status of the Arizona Department of Water Resources (ADWR) Gallons per Capital per Day (GPCD) notification letter. ➢ In November 2008, the Town received a notification letter from ADWR regarding stating that in years 2000 through 2005, the Town exceeded its GPCD allotment. This was due to the fact that the Utility served groundwater to 6 golf courses. Currently 5 of these golf courses are using reclaimed water. During 2006, the Town was within the GPCD allotment. Town Staff met with ADWR to discuss participating in the Non- GPCD Conservation Program. This would require the Utility to implement 5 additional conservation measures, such as additional public education, toilet rebates, etc. Staff will review all options and will bring a recommendation back to the Commission and the Town Council. Staff will continue to work with ADWR to resolve this issue. One of the Utility's concerns is how ADWR made the actual calculations for population using census data. There being no questions or comments, Mr. Saletta ended his report. 5. TOWN COUNCIL MEETING/COMMUNICATIONS Vice Mayor Carter had no report. Council Member Gillaspie reported that he had met with Tucson Water Staff regarding their ordinances on graywater. 6. SUBCOMMITTEE/COMMISSIONER REPORTS Conservation Subcommittee Commissioner Davis reported that the Conservation Subcommittee Members are still working on the Task Force assigned to the Town's existing Landscape Code. Additionally, the Town is waiting for a price quote on a weather station which was included in the Conservation 5 1/12/09 Minutes, Oro Valley Water Utility Commission budget for the Water Utility. It is anticipated the new weather station will be purchased at 50% of the original cost. Commissioner Davis ended his report. Renewable Water Subcommittee Commissioner Hoffmann stated that the subcommittee had not met and therefore had no report. Finance Subcommittee Commissioner Shapiro stated that the subcommittee had not met and therefore had no report. 7. STAFF REPORTS Customer Service Report Ms. Seng reported total metered connections at 12/31/08 = 18,329 Projected new meters for FY 08-09 = 250 and at 12/31/08 we were at 152 Projected EDUs for FY 08-09 = 312 and at 12/31/08 we were at 440 The EDU count is due mostly due the larger commercial meters installed at the Oro Valley Market Place Capital Projects Mr. Jacklitch reported that Pusch View is scheduled to go on line next week and design is almost complete on a 3 million gallon reservoir on King Air. Design is under way for 2000 linear feet of pipeline on Innovation Way. The Utility has received cost estimates to re-drill a well west of First Avenue near Tangelo. Potable and Reclaimed Water Systems Report Mr. Ruiz reported that potable water demand ranged from 4 million to 5.9 million gallons during the month of December. Reservoir levels maintained 7 million gallons over the month of December. Reclaimed water use during CY 2008 was 577 million gallons. The last 3 reclaimed water users came on line October 2008. The volume of water that we can get through the reclaimed delivery system never exceeded what Tucson Water is committed to give us. 8. DIRECTOR'S REPORT Mr. Saletta reported that Board and Commission appointments will be discussed at the Council meeting on January 21. The Utility stored an additional 1000 acre feet of CAP water at the Pima Mine Road Recharge Facility. In 2008 we stored 4200 acre feet of CAP water at the Kai Farms facility. In 2009 we plan to store 4000 acre fee of CAP water of which 2000 acre fee will be stored at the CAWCD facilities and 2000 acre feet at the Kai Farms facility. Kai has reduced his request by 500 acre feet for 2009. Every acre foot of CAP water that is stored helps the Town offset its CAGRD obligation in terms of costs which saves the Town money. January 6, 2009 state legislators held a meeting in Tucson. The following items were discussed: 6 /12/09 Minutes, Oro Valley Water Utility Commission Upcoming meetings: Council Meeting on January 21st, Water Utility Commission meeting on P g February 9th and on February 18th is a WIFA Board Meeting—we hope to have projects in front of the WIFA Board in order to get on their Priority List to get low interest loans to construct the projects. 9. FUTURE AGENDA ITEMS Commissioner Milkey suggested discussing the possibility of increasing the conservation education program. Mr. Saletta requested that the Conservation Subcommittee meet prior to a Commission discussion. Mr. Powell suggested that the Conservation Subcommittee evaluate how effective the Oro Valley Vista is compared to the Oro Valley Water Ways Newsletter. CALL TO THE AUDIENCE No speakers NEXT MEETING: February 9, 2009 Location: Hopi Conference Room ADJOURNMENT: 7:14 p.m. MOTION: A motion was made by Commissioner Davis and seconded by Commissioner Milkey. Motion carried 5-0 Respectfully, Shirley Seng for 472(ig-JD Trig I,.Chaparro Senior Office Specialist 7