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HomeMy WebLinkAboutMinutes - Water Utility Commission - 10/12/2009 /NOB MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION MONDAY, OCTOBER 12, 2009 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER ROLL CALL PRESENT: Rick Davis, Vice Chair John Hoffmann, Commissioner Robert Milkey, Commissioner Elizabeth Shapiro, Commissioner EXCUSED: David Powell, Chair Winston Tustison, Commissioner Richard Reynolds, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator David Ruiz, Engineering Division Manager Robert Jacklitch, Project Manager Karn Boyce, Conservation Specialist Jim Peterson, Water Utility Regional Coordinator OTHERS: Vice Mayor, K.C. Carter B. Vella, AICP, Planning & Zoning CALL TO AUDIENCE Mr. Doug McKee, Oro Valley resident expressed concerns on several issues: -Conservation & Green Development -How does water conservation affect water sales and revenues -Develop an economic model to help evaluate changes in volumes of water sold and its effect to the Utility's revenue. If consumers practice conservation methods or experience for example a 5% reduction, does it get consumed by a rate increase the following year? Mr. McKee requested some justification from Staff if indeed this was the case. 10/12/09 Minutes, Oro Valley Water Utility Commission -Water conservation/water table/CAP Water -Volunteered to help build economic model and assist Staff Mr. Weise, Oro Valley resident discussed -Water Usage by Homeowner Associations on (vegetation, trees and turf) -Vistoso Community usage -Estimate: (60 million gallons) -Requested that the WUC help and assistance in this matter. Mr. Saletta mentioned that Staff could address this issue under the Commission's direction in the near future. He indicated that one of the ways the Utility can influence HOA's is through water conservation. He explained that Ms. Boyce, Conservation Specialist has been working closely with the HOA's performing water audits, changing out unused irrigation meters. Staff welcomes and encourages HOA's to contact Ms. Boyce. 1. APPROVAL SEPTEMBER 14, 2009 MINUTES AND SEPTEMBER 28, 2009 Discussion and/or possible action. Click here for Item 1A Click here for Item 1B MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Milkey to approve the September 14, 2009 minutes. MOTION carried, 4-0. MOTION: A Motion was made by Commissioner Milkey and Seconded by Commissioner Hoffmann to approve the September 28, 2009 special Meeting minutes. MOTION carried, 4-0. 2. TOWN OF ORO VALLEY LANDSCAPE ORDINANCE (B. Vella/K. Boyce) Discussion and/or possible action regarding a proposed Landscape Ordinance. Discussion may include review of the proposed ordinance. Click here for Item 2 Click here for Item 2A Mr. Vella's introduction - Conservation & Sustainability Manager Project for the Town of Oro Valley. Currently working on the Proposed Landscape Conservation Code. This is a joint effort with K. Boyce, Conservation Specialist, Landscape Advisory Task Force, Commission members: R. Milkey & R. Davis, Industry representatives, landscape architects, and other staff. Mr. Vella gave a Power Point Presentation on the Landscape Conservation Code. -Concept: Oro Valley Sustainable Water = 5,500 ac/ft 2 10/12/09 Minutes, Oro Valley Water Utility Commission -Years 2015 & 2020 CAP allocation -Town Water Use (Graph) Gallons Sold By User Type -General Plan Policies -Solutions in General Plan -Plant Palette -Water Planning (Graph) -Average Annual Water Use for Irrigation -Water Savings -Water Planning -Cumulative Water Savings -Irrigation Specifications -Rain Water Harvesting Requirements -Private Sector (Benefit & Costs) -Public Sector (Benefit & Costs) -Impact of Landscape Conservation (Map) -Future Impact (Map) -Process Mr. Vella informed the Commission that the Landscape Ordinance has been the most meeting intensive project he has worked on. It has been endorsed by the Planning & Zoning Commission and the Metropolitan Pima Alliance, an association of promotions and developers. The aim is to present the Landscape Ordinance to Council in November. -Commissioner Milkey stated he had reviewed the process and an extensive and great deal of care was taken into bringing all the potential stakeholders to review the ordinance from a number of different aspects. -When will the Landscape Ordinance be instituted? (Commissioner Shapiro). The Landscape Ordinance will be forwarded to Council in November and may become effective as of June 1, 2010. There were no further comments or questions, Mr. Vella ended his report. CALL TO AUDIENCE: Mr. Doug McKee Oro Valley Resident commented: -These committees have done a good job putting together a plan to reduce water usage and education is very important. He felt that the developers and residential users would reduce water usage voluntarily. -Problem with the Proposed Landscape Ordinance and its mandates. Restricts the freedom of developers and users. -Burden on staff to review design and enforce the ordinance. -Increases Town's expenses, negative affect to the General Fund and tax base -Increases Water Utility's expenses and decreases revenue stream -Suggests passing the Ordinance without making it mandatory or a requirement. Costs could increase and perhaps get out of control. Costs are small now according to staff but programs grow. Mr. Bill Adler Oro Valley Resident commented: -What are the consequences of doing nothing? Water is a scarce commodity and water quality is in jeopardy; diminish supply, high demand for a scarce commodity increases prices. Our desert climate can not sustain life without water quality. Water must be regulated carelessness and waste is dangerous. -Water rates increases should be higher encouraging conservation. 3 10/12/09 Minutes, Oro Valley Water Utility Commission -Encourage water conservation education (Homeowner Associations, Residents), Expand water audits, and train volunteers providing a valuable free service. -The goal is to achieve a sustainable environment. There were no further comments. Mr. Saletta acknowledged and thanked Ms. Boyce, Mr. Vella, Commissioners Milkey and Vice Chair Davis on the Water Conservation Subcommittee for their participation and effort with the Landscape Ordinance. Vice Chair Davis entertained a motion regarding the Proposed Landscape Ordinance. MOTION: A Motion was made by Commissioner Milkey and Seconded by Commissioner Hoffmann recommending adoption of the proposed Landscape Ordinance as written for Council approval. MOTION carried, 4-0. 3. UPDATE ON DISCUSSIONS WITH TUCSON WATER (P. Saletta) Discussion regarding the preliminary discussions with Tucson Water regarding an agreement to wheel (deliver) the Town of Oro Valley's Central Arizona Project Water to Oro Valley Water Service Area. Click here for Item 3 Mr. Saletta gave the following update: -Packet: T.C. Communication 10.14.09 -Concept: Use Oro Valley CAP water allocation to deliver to Tucson Water facilities. This is no different than storing water-with Central Arizona Water Central Conservation District (CAWCD) Recharge facilities or ground water storage facility such as Kai Farms. -Oro Valley would track the account at Tucson Water's recharge facilities for our storage credits. -Tucson Water storage facilities: Central Avra Valley Storage & Recovery Project and Southern Avra Valley Storage and Recovery Project. When Oro Valley's accounts are established in these two facilities our water will be delivered through Tucson Water's distribution system near Naranja & Shannon. This is only an interim short—term opportunity to store water in Tucson Water facilities. -Tucson Water has capacity for both storage and flow Discussions with Tucson Water -Discussed Cost of Service Study to store and deliver the water. A draft Scope of Work has been developed for the Cost of Service Study together with the Intergovernmental agreement for the cost sharing. 4 • 10/12/09 Minutes, Oro Valley Water Utility Commission -Investigation & Technical Issues: Water Quality (recharged groundwater), flow ` capacity and system pressure, determine the costs for additional infrastructure to accomplish delivery, (pumps and pipelines. Zone C to E pumping). Purchase additional CAP water under our existing M&I Subcontract. In addition, by obtaining wet water it will help reduce Oro Valley's excess ground water production and obligation to CAGRD. -Metro Water is also interested in this concept and is planning to participate in the Cost of Service Study. -All Northwest Water Providers (NWWP), Flowing Wells, Metro Water, Town of Marana have been informed of the negotiations. The Cost of Service Study and IGA could be in place 4 to 6 months. -Town Council Study Session will be held Wednesday, October 14, 2009 regarding Tucson wheeling of Oro Valley's CAP water. There were no questions, Mr. Saletta ended his report. No Action was required on this Item. 4. WATER RATES ANALYSIS (S. Seng) Discussion and/or possible action regarding the status and schedule of the proposed Water Rates Analysis and the Notice of Intent to increase water rates, fees and charges. Click here for Item 4 Click here for Item 4A Ms. Seng reported the following: Packet: Copy of T.C. Communication Study Session 10.14.09 Proposed schedule for the rate setting process: -10/7/09 Council unanimously approved Notice of Intent to increase water rates. -10/14/09 Council Study Session on the proposed water rates -10/26/09 Publish Notice of Intent -10/30/09 Mail Public Hearing notice to customers -11/18/09 Public Hearing on water rates if NOI is approved -12/19/09 If adopted, the proposed water rates will become effective Mr. Saletta reviewed a Power Point Presentation on Water Rates Analysis -Background -Mayor & Council Water Policies -Enterprise Fund Operating Revenue & Revenue Requirements -Enterprise Fund Operating Expenses -Financial Scenarios -Customer Analysis -Other Fees & Charges -Review of Schedule Ms. Seng commented that the Water Rates Analysis report was available on O.V. Water's website, Clerks office, Library and Water Utility Office. 5 • 10/12/09 Minutes, Oro Valley Water Utility Commission There were no questions, Mr. Saletta ended his report. No Action was required on this Item. 5. INTERGOVERNMENTAL AGREEMENT WITH METRO WATER (P. Saletta) Discussion and/or possible action regarding a proposed extension of time for existing bulk water service from Metropolitan Domestic Water Improvement District. Discussions may include background on the existing agreement and a proposed future agreement. Click here for item 5 Mr. Saletta reported the following: Packet: T.C. Communication dated 10/12/09 -Summary: Intergovernmental agreement with Metro Water for Water Service in Area 2 near Hardy Road and Northern Ave. -1999 Oro Valley had an agreement with Metro Water to finalize the terms and conditions to transfer OVDWID #1 to the Town of Oro Valley. -Terms of agreement: Provide bulk water service to Oro Valley Water Utility to supply approximately 17 customers near Hardy and Northern Ave. known as Area 2. All the terms of the agreement have been met. This agreement expired 2005 however; Metro Water continues to supply wholesale water to Oro Valley. -Agreement: Develop a new agreement to allow continued delivery and purchase of wholesale water to Oro Valley customers in Area 2. Oro Valley's pipeline system does not have the pipeline, pressure or flow to reach these customers. This agreement would allow for a 3 year extension with a 2-5 year period renewal term. Oro Valley Water Utility will look to extending its pipeline system to these customers. The new agreement will stipulate that Oro Valley Water will discontinue purchase of wholesale water from Metro Water when Area 2 customers are connected to Oro Valley's water system. OVWU Staff recommends that the Commission move forward with Metro Water's 1GA for final approval to Town Council. -Current wholesale rate and possible increases. (Commissioner Hoffmann). Mr. Saletta indicated that the rate could possibly go up; the current water rate is $2.99 per thousand gallons. Oro Valley's current two month bill = $1,700 -Oro Valley Water Utility water rates for Area 2 customers (Commissioner Milkey). Mr. Saletta explained that the customers would be subject to the same rate increases as all existing residential customers. -Performance problems with Metro Water or difficulties. (Commissioner Milkey). Mr. Saletta stated, we have not had any problems, but if they have a leak on their 6 10/12/09 Minutes, Oro Valley Water Utility Commission system or need to shut down we would like to have all those customers on to our system. Metro Water has a relatively new system and outages are not as frequent. MOTION: A Motion was made by Commissioner Milkey and Seconded by Commissioner Shapiro recommending that Town Council approve an IGA with Metro for water service to customers in Area 2 near Hardy Road and Northern Ave. MOTION carried, 4-0. 6. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Vice Mayor Carter) Report on Council Liaison Assignments Vice Mayor Carter reported the following: -10/14: T.C. Study Session Topic: Water Rates. He reported that Mayor Loomis may not be there. Staff should be prepared to receive public opposition. -Rate Increases: Vice Mayor Carter felt in his opinion that the Preferred Scenario was the best option. -Elections: Vice Mayor indicated he was running for Town Council Vice Mayor Carter ended his report. 7. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Shapiro) Commissioner Shapiro had no report. b. Conservation Subcommittee (Chair Davis) Chair Davis had no report. c. Renewable Water Resources Subcommittee (Chair Hoffmann) Chair Hoffmann had no report. 8. STAFF REPORTS a. Customer Service Report (S. Seng) Click here for Item A Ms. Seng reported on Customer Service Report - Meter Installations Actual New Meter Installations as of 9/30/09 = 16 Current Month = 6 Current CY 2009 = 59 Last CY 2008 = 248 Ms. Seng ended her report. 7 10/12/09 Minutes, Oro Valley Water Utility Commission b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported on the Capital Improvement Program: -Innovation Park Drive 16" Water Main: Finalized the permitting process, contractor will begin work next week. A pre-construction meeting will be set in the near future. Scope of Work: Installation of 2000 linear feet of 16" ductile pipe. -Location: East Innovation & Tangerine North -Completion Target date: January 2010 -Well El Drilling: Location: Tangelo & 1st Ave. The contractor's work is almost complete and the well has been installed. -Pump test will begin 10/13/09 -Well capacity 800 gpm -North La Canada Reservoir: Opening bids occurred in September and Staff has reviewed all bids. Staff will be meeting with the Water Director recommending the installation of a 2 or 3 million gallon reservoir. -24 Inch Water Main: This project is currently being advertised. Scope of Work: installation of a 24 inch water main approximately 2500 linear feet connecting to the new La Canada reservoir. -Location: Moore Rd & King Air -Bid Opening: November 6. Mr. Jacklitch ended his report. c. Potable and Reclaimed Water System Report (D. Ruiz) Click here for Item C Mr. Ruiz reported the following: -Distribution of CAP Water: Staff is currently working on a request for Qualification (RFQ) CAP distribution. The contract was awarded to consultants CH2M Hill. Staff is working on the Scope of Services proposal. The study will include'CAP water quality, distribution and its compatibility to Oro.Valley's ground water. Staff met with CH2M Hill consultants, they provided a Scope of Services and several changes were made. They will meet with staff next week to discuss several components: Delivery of Oro Valley's CAP water through Tucson's Water System and delivery of CAP water through the proposed treatment plant facility. September Reports -Daily Demand Operations Report: Precipitation 3 events. Demand Flow = 8.5 Million Gallons per Day (MGD). When temperature drops demand also drops. -Potable Operations Report: Overall Reservoir Storage = 6.5 Million Gallons (MG) Daily Demand = 8.5 Million Gallons (MGD) -Reclaimed Water Report: Total of 6 end users Total Demand = 54 Million Gallons. El Conquistador South Pond will be on line for reclaimed water by next month. This time of the year the golf courses are experiencing peak demand because of their overseeding process. 8 10/12/09 Minutes, Oro Valley Water Utility Commission Mr. Ruiz reported that the Stone Canyon pond had failed. They were shut off and Oro Valley was able to deliver water to their wet well. The Utility was able to isolate the pond avoiding any leakage or spillage. They hired a contractor to replace the pond. The Utility performed several tests and was able to have them back on line. Mr. Ruiz ended his report. Vice Chair Davis was very pleased with the golf courses performance and reported that the training/information forum had been successful. Mr. Ruiz stated that they were managing daily water demand very well and trying to keep cost down. 9. DIRECTOR'S REPORT (P. Saletta) Mr. Saletta reported the following: -WIFA Loan: The WIFA loan was approved by Town Council October 7, 2009 and Staff continues to move forward. The loan document has been submitted to Arizona Water Infrastructure Authority. They are reviewing these documents and closing could take place as early as October 23, 2009 or the first week of November. -Packet Information: Copy of CAP Water Conservation District representatives. Mr. Saletta pointed out the four Pima County representatives (Pat Jacobs, Sharon Megdal, Warren Tenney, and Carol Zimmerman). Mr. Jim Peterson gave a brief background update about Pima County's Board of Directors and CAP issues such as rates, and Federal mandates which could be detrimental to the Northwest area. He indicated that coal powered plants operations provided power to run CAP Water. A possible carbon tax could be passed iricreasing CAP's operational costs 260% or 400%. This issue is very active in congress. Mr. Peterson also indicated that CAP storage capacity last month was 58%. Mr. Peterson ended his report. a. Upcoming Meetings -10/14: T.C. Study Session Topic: Water Rates & Tucson Water IGA -11/4: T.C. meeting -11/18: T.C. Meeting Topic: Water Rates & Public Hearing Staff will email this information to the Commission. Future Agenda Items: -Discuss: Drought Status Indicator current data (Commissioner Milkey) CALL TO AUDIENCE - At this time, any member of the public is allowed to address the Water Utility Commission on any issue not listed on today's agenda. Pursuant to the Arizona Open Meeting Law, individual Commissioners may ask 9 10/12/09 Minutes, Oro Valley Water Utility Commission Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Water Utility Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience" please specify what you wish to discuss when completing the blue speaker card. Mr. Weise had a question regarding the 20 cent water rate increase per thousand gallons. Mr. Saletta encouraged him to read the Water Rates Analysis Report. NEXT MEETING: November 9, 2009 Location: Hopi Conference Room ADJOURNMENT : 7:25 p.m. MOTION: A Motion was made by Commissioner Milkey and Seconded by Commissioner Shapiro to adjourn the meeting. MOTION carried, 4-0. Prepared by, OC Iris L. Chaparro Senior Office Specialist _.r 10