HomeMy WebLinkAboutMinutes - Water Utility Commission - 1/11/2010 0 0MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
MONDAY, JANUARY 11, 2010
HOPI CONFERENCE ROOM
11000 N. LA CANADA DRIVE
CALL TO ORDER: 6:01 P.M.
ROLL CALL
PRESENT: Dave Powell, Chair
Richard Davis, Vice Chair
John Hoffmann, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
Robert Milkey, Commissioner
Winston Tustison, Commissioner
STAFF PRESENT: Philip C. Saletta, Water Utility Director
Shirley Seng, Utility Administrator
David Ruiz, Engineering Division Manager
Robert Jacklitch, Project Manager
Jim Peterson, Water Utility Regional Coordinator
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 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.
Chair Powell indicated there were speakers.
1. APPROVAL NOVEMBER 9, 2009 MINUTES - Discussion and/or possible
action.
"Click here WUC Draft Minutes"
Page 2 - Correct: Punctuation first paragraph Town Council Study Session
Page 8 - Correct: WIFA Loan October 23rd at a rate increase of 3.171% which was
lower than anticipated.
1/11/10 Minutes, Oro Valley Water Utility Commission
MOTION: A Motion was made by Commissioner Tustison and Seconded by
Commissioner Milkey to approve November 9, 2009 minutes as corrected.
MOTION Carried, 6-0.
2. UPDATE ON CENTRAL ARIZONA PROJECT ADD WATER PROJECT
(P. Saletta) Discussion and/or possible action regarding an update on the
Central Arizona Project Acquisition, Development and Delivery Project. This is
known as the ADD Water Project to investigate opportunities for the CAP to
acquire additional water supply.
"Click here Item #2"
Mr. Saletta reported on the ADD Water Process (Additional Delivery and
Development) for water users in the CAP Project.
-Packet: Executive Summary of Emerging Consensus and Remaining Issues (Draft)
This report will be presented January 21 to the Central Arizona Project Board
Working Session.
-ADD Water Concept: Use available excess capacity in the Central Arizona Water
Canal. The canal typically delivers about 1.5 million a/f of water per year. This is
CAP's contractual obligation and responsibility to deliver. In addition there will be
excess water that can be delivered if available for sale. The excess water in the
canal could actually deliver about 1.8 million a/f. There could be about 300,000
a/f per year of excess capacity available.
-Goal: Obtain additional water rights to purchase Colorado River water that may be
available for sale.
Mr. Saletta indicated that he would like to have further discussion and participation in
the ADD Water group since it is was an ongoing process. He also indicated that he
would like to discuss the ADD Water process with the Renewable Water
Subcommittee. This item will come back to the Commission requesting staffs
participation in the ADD Water Project.
Mr. Saletta emphasized that the water deliveries would not interfere with any
existing deliveries from the canal. If Oro Valley decides to increase its ADD
Water capacity the estimated cost could be $300 a/f, however this is a very valuable
resource to the Town of Oro Valley. This estimated cost does not include costs for
acquiring water supply and operational costs.
Question and answer session:
-What would we do with the excess water? (Commissioner Shapiro) Mr. Saletta said
we have 10,305 a/f giving Oro Valley the ability to serve a population of about
80,000 but if Oro Valley plans the annexation of Arroyo Grande and expands its
boundaries there would be a need for more water supply. We can also use the
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excess water to help reduce our obligation to the Central Arizona Groundwater
Replenishment District (CAGRD).
-Will we obtain more CAP water allocation because Arroyo Grande is in the Active
Management Area? (Vice Chair Davis) Mr. Saletta mentioned that the Utility could
always drill wells in other locations providing we have the land and permits in
place. Mr. Saletta mentioned that under the groundwater code Oro Valley has to
replace every single acre foot of groundwater that is why renewable water resources
becomes very important. One of the possibilities with Arroyo Grande is getting a
portion of the State Land CAP allocation, but we still need to investigate additional
water resources.
-Is there a time table when the additional water will be received? (Commissioner
Reynolds). Mr. Saletta indicated there were internal issues to be worked out with the
Central Arizona staff, Department of Water Resources, Bureau of Reclamation
and the actual purchase for the Colorado River water and water rights. However,
what may get done in the next year could be determining who will participate.
-Have there been any current developments regarding Arroyo Grande?
(Commissioner Tustison) Mr. Saletta said there had not been much development
only discussions with the new Commissioner of State Land.
-Any idea what portion of the 300,000 a/f will be allotted to different stakeholders?
(Commissioner Reynolds). Mr. Saletta said there had been some planning studies
indicating that in the three county areas there could be an additional need for
287,000 a/f. Oro Valley has not determined what will be requested but further
studies will be performed.
Mr. Saletta explained that CAGRD has a big interest in purchasing ADD Water since
they do not have sufficient amounts of excess water as an entity. He explained that
the more resources Oro Valley is able to obtain the less reliant we will be on CAGRD
and its obligation. CAGRD has increase their costs from $305 to $335
and could increase as much $361 in the next 2-3 few years (10% increases).
Chair Powell asked whether action was needed. Mr. Saletta indicated No Action
was Required as long as there was consensus from the Commission to move
forward with further discussions at the Renewable Water Subcommittee meetings.
CONSENSUS:
The Commission had no objection moving the item forward for further discussion
with the Renewal Water Subcommittee.
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3. UPDATE ON NORTHWEST WATER PROVIDERS CENTRAL ARIZONA
PROJECT WATER TREATMENT AND DELIVERY SYSTEM (Commissioner
Hoffmann, P. Saletta, D. Ruiz) Discussion and/or possible action regarding an
update on the Northwest Water Providers CAP Treatment and Delivery
System. Discussion will include recent activities on the Intergovernmental
Agreement and the recent Value Planning Process for the NW reliability.
Commissioner Hoffmann reported that the Renewable Water Resources
subcommittee met December 9, 2009 and gave a brief update.
-The N.W. Water Providers continues working on the IGA and are trying to use
existing templates used by Town's such as Chandler, Gilbert and others.
-Key issues:
-Develop an agreement to operate/maintain and deliver water from the N.W.
Reliability reservoir. Two separate IGA's: construction and the delivery of water and
operations and maintenance of the plant will be developed.
-Project Lead Agent: A discussion occurred regarding which entity would take the
lead role in heading the operations and maintenance of the facility. Water deliveries
& treatment for each entity: Metro Water and Oro Valley = 10,000 a/f per year, Town
of Marana = 7,000 a/f per year, Flowing Wells = 3,000 a/f per year. The maintenance
and operations of the facility could require a staff of 6-7 FTE's. Both Metro Water
and Oro Valley have expressed their willingness and capability to be the Lead Agent
for this project. Commissioner Hoffmann felt that the topic will require further
discussions from the Water Utility Commission.
Mr. Saletta reported the following:
-Oro Valley will still have to pay its portion whether it is the Lead Agent or not. This
would be revenue neutral because all entities will be paying for their fair share of
delivery.
-Develop an (IGA) Intergovernmental Agreement for Design and Construction. Prior
to construction an IGA must be in place for the actual Operations and Maintenance.
Mr. Saletta explained that the agreement has been set to have a Lead Agent which
could be one of the entities or an outside program manager for design, construction
or O&M. One of the N.W. Water Providers would still need to take the role as a Lead
Agent to handle the contract with the outside entity. Mr. Saletta felt that Oro Valley or
Metro Water should take the role as the Lead Agent because they have the most
water. Currently Metro Water has taken on the project role on all the current studies.
We need to discuss if Oro Valley Water Utility wants to take the lead on this project
or share the responsibilities with one or all the other partners. Mr. Saletta indicated
that this item would be coming back to the Commission. No Action was Required
on this Item.
Chair Powell commented we might want to discuss or consider the political makeup
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of a Town versus Metro Water who has its own elected board and how it affects our
water resources.
-What are the pros and cons if Oro Valley becomes Lead Agent? (Commissioner
Milkey). Mr. Saletta emphasized that any one of the entities can do it, there would
also be a standing IGA outlining all the O&M criteria. Oro Valley Utility could do
it from a technical perspective. There are not a lot of advantages except for
managing the project and the decision making process. There will also be a Steering
Committee and Planning Committee for this project. This is a technicality that must
be discussed.
Commissioner Hoffmann mentioned that it builds a certain set of skills that the Town
of Oro Valley may not have which could become an asset. Mr. Saletta emphasized
that most of the Utility staff is certified in distribution but by hiring new staff we could
certainly handle it from a management stand point. Chair Powell felt that some sort
of protection could be built in the IGA review process.
-Does Chandler and Gilbert have a functioning IGA and how long has it been in
operation? (Commissioner Tustison) Mr. Saletta mentioned that the IGA's have been
in progress about a year, and felt that some helpful guidelines could be obtained
from these documents. Mr. Warren Tenney from Metro Water is in the process of
getting the documents electronically.
There were no further questions, Mr. Saletta ended his report.
Mr. Ruiz gave a brief update regarding the N.W. Water Providers Value Planning
effort put together by the Bureau of Reclamation, N.W. Water Providers and CAP
Staff.
Participants: Oro Valley, Metro Water, Town of Marana, CAP and the Bureau of
Reclamation.
Tasks
Review reliability feature for the reservoir and provide a 30 day supply of water
for CAP's annual planned maintenance shut down.
-Mr. Ruiz gave a brief description and configuration of the two reservoirs being
offered by the Bureau of Reclamation for storage capabilities.
-Reservoir storage capacity: 3,200 a/f estimated water storage, approximate size
110 acres of surface area.
-Describe alternative ways to provide reliability besides using storage.
(Provide a bypass at each pump station during the 30 day planned outage and size
for the water providers. Bypass includes a new pump station and pipeline. Bypass
would have to upsized to serve other entities)
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1/11/10 Minutes, Oro Valley Water Utility Commission
-Estimated cost for reservoir = $59,000,000 or $50,000,000 dependant on amenities
-Estimated Cost for 3 bypasses = $18,000,000 (does not include detail design)
Benefit-The Utility would not be tied to a 30 day supply. The bypass could be used
until the planned maintenance shut down is complete. In the event the shut down is
due to a canal failure, the Water Utility would use the well field to continue to
provide supply to the Town. Mr. Ruiz emphasized that with the bypass the entities
are not tied to a 30 day schedule.
Mr. Ruiz also indicated that at the end of the week a short report was put
together and presented to the Managers of the Northwest Water Providers. It was
an important effort giving the Northwest Water Providers a viable alternative to
reservoirs for a lot less money however a treatment plant will still need to be in
place. Mr. Ruiz ended his report.
Mr. Saletta thanked Mr. Ruiz for his effort and working closely with Mr. Maisch from
Metro Water. Mr. Saletta pointed out that the Bureau was responsible for providing
the reliability component. The Bureau also claims that this project can be
constructed without going through Federal funding. Mr. Saletta indicated that the
Bureau will not provide funding for any recreational amenities (approximate cost
$10,000,000). Since the Bureau is reluctant to pay, the Town of Marana is less likely
to go with an open surface water reservoir however; they support the concept for the
bypass. This reservoir water surface area will encompass about 110 acres of land.
Mr. Saletta indicated No action was Required on this Item.
Can the bypasses be adapted to increase the capacity for CAP as well?
(Commissioner Davis) Mr. Ruiz indicated the pipes and pumps will be sized for the
N.W. Water Providers only, however, if we want additional water or if there are to be
more participants, the system should be upsized up front to accommodate the
increase in capacity.
Mr. Saletta gave a brief explanation regarding the servicing and maintenance of the
CAP canal and pumps.
There were no further questions, Mr. Ruiz ended his report.
4. UPDATE ON WATER USAGE COMPARISON (S. Seng) Discussion and/or
possible action regarding an update on water usage.
"Click here Item #4"
Ms. Seng presented a Power Point presentation on Water Use Trends requested by
Commissioner Milkey. She gave a brief summarization and explanation on each of
the categories various decreases and increases for the years 2005 through 2009.
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Slide 1 - Potable & Reclaimed Water Use (Includes all user classifications)
Slide 2 - Potable Non - Turf Water Use History (all classifications, Residential,
Commercial, Non-turf Irrigation & Construction - excludes golf courses).
Slide 3 - Potable Water: Residential Water Use History.
Slide 4 - Potable Water: Commercial Water Use History.
Slide 5 - Potable Water: Irrigation Water Use History (Parks, Medians, Common
Areas & HOA, Excludes golf courses)
Slide 6 -Construction Water Use History.
Slide 7 - Golf Course Water Use History (Potable and Reclaimed)
Slide 8 - Revenue Water Sales
A question and answer session occurred:
-With the price increase in construction water rates has staff received any feed back
from contractors? (Chair Powell) Ms. Seng indicated that the Utility had not received
any comments about the increases.
-Why was there a drop in residential use? (Commissioner Milkey) Ms. Seng
mentioned that according to 2008 data there were a number of increases
in vacancies, foreclosures and more emphasis toward conservation.
Mr. Saletta indicated that in 2006-07 the Town initiated volunteer restrictions through
the Drought Preparedness Plan which made residents realize that they could use
less water without changing their quality of life.
There were no further questions or comments, Ms. Seng ended her report. No
Action was Required on this Item.
5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember
Carter)
"Click here Item #5 Article Regional Plan on Water Set"
Council member K.C. Carter inquired about the article dated 1/11/2010 on Regional
Plan on Water Set and Oro Valley Water Utility's participation.
Commissioner Davis commented that it was a regional study initiated by Pima
County Wastewater and the City of Tucson.
Mr. Saletta explained that City of Tucson -Water Department and Pima County
Wastewater Department developed the Joint Study. They will also discuss regional
issues, areas in the Tucson Water System service area supplied by Pima County
Wastewater. Oro Valley originally attended some meetings. They have completed
the first phase of the study and are now working on involving other areas that
surround Tucson Water and Pima County Wastewater.
During the process Oro Valley as a member of the SAWUA wanted to be part of the
regional studies however, Oro Valley was not given representation and a seat at the
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table. Mr. Saletta indicated that if they are willing to do the study from a regional
perspective Oro Valley will participate with approval from Town Council and the
Commission.
In answer to Councilmember Carter's question, Mr. Saletta indicated that the studies
would not affect Oro Valley's Reclaimed Water since the Town has contractual
obligations through Intergovernmental Agreements, however if we want to attend we
need representation. Mr. Saletta did not see any major problem with the regional
study except for the need for representation.
Councilmember Carter felt that staff should keep track of the discussions.
There were no further discussions.
6. SUBCOMMITTEE/COMMISSIONER REPORTS
a. Finance Subcommittee (Chair Tustison)
Chair Tustison had no report.
b. Conservation Subcommittee (Chair Davis)
Chair Davis reported the following:
-Conservation Subcommittee met December 2, 2009
Major Topics:
-Developing a Volunteer program for the Conservation program
-Opportunities to have presentations in Home Depot and Sun City Expos.
-The subcommittee will develop a job description and work with Town employees
Amanda Jacobs, Mary Davis and the H.R. Director to discuss their existing volunteer
programs and Oro Valley Water Utility ideas.
-Discuss liability issues.
-Promote water conservation at Farmers Market.
-Drought Response Plan: Commissioner Milkey will be reviewing some of
the triggers from Tucson Water and other water agencies. The subcommittee will
also be contacting Eileen Grossman with the City of Tucson and Christina
Bickleman, Internal Water Resources about some of the triggers for monitoring wells
and other issues.
Chair Powell commented that the Middle Schools in the area have terrific programs
on water conservation education. He thought it would be a good idea to have some
of the volunteers attend the middle schools.
Chair Davis mentioned the subcommittee is working on putting some presentations
together for school age students as well as Homeowners Association meetings.
Chair Davis ended his report.
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1/11/10 Minutes, Oro Valley Water Utility Commission
c. Renewable Water Resources Subcommittee (Chair Hoffmann)
Chair Hoffmann indicated that Renewable Water subcommittee met on December
9th. He gave a quick summarization on each of the items. Attendees: D. Ruiz, P.
Saletta, Commissioners: R. Davis and R. Reynolds.
Item #1 Update on IGA with Tucson Water for CAP Wheeling
-Oro Valley, Metro Water and Tucson Water have agreed to share in the costs of an
outside consultant Ref: Cost estimates for CAP wheeling.
-Cap wheeling: CAP wheeling could be as much as 2,000 -3,000 a/f per year. Goal:
Sustainable volume of annual use 5,500 a/f of groundwater per year
-Delivery could take 1.5 years
Item #2 Update on Northwest Water Providers IGA (No report)
Item #3 Update on CAP Water Studies
-Oro Valley has recently submitted an RFQ (Requirement for Qualifications). CH2M-
Hill was selected to conduct a water distribution study. The study will be initiated
in two phases, First phase - CAP wheeling and water quality effects, Second phase
— CAP distribution from the NW treatment plant
Item #4 Use of Ground Water Preservation fee
-GPF was created in 2003 to repay debt associated with capital improvements.
-Discussion item: Can revenue from GPF be used for CAP wheeling? This issue will
be up for discussion at a later time by the Renewable Water Subcommittee.
Chair Powell commented that the Finance Subcommittee should also be included.
Chair Hoffmann ended his report.
7. STAFF REPORTS
a. Customer Service Report (S. Seng)
"Click here Customer Service Report"
Ms. Seng summarized Meter Installations as of December 31, 2009:
-FY 09-10 Projected New Meter Installations = 60
-Actuals as of 12/31/2009 = 28 -Current Month = 6 Current CY 2009 = 71
Last CY 2008 = 295
-FY 09-10 Projected EDUs = 90 -Actuals as of 12/31/2009 = 35
Ms. Seng ended her report.
b. Capital Projects (B. Jacklitch)
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Mr. Jacklitch reported the following:
-Innovation 16-inch Water Main Installation: Location: Tangerine & Innovation. This
project is 90% complete. Completion date: February 2010. The final phase of the
project will be landscaping.
-Replacement Well E-1 B: Currently preparing the site for pumping. Design
completion: March 2010. As soon as the design phase is complete the project will go
to bid.
-La Canada 3.0MG Reservoir: Project duration: 12 months Description: Buried
prestressed concrete reservoir Location: Moore Road & King Air Drive. This
project will require the installation of a 24-inch water main approximately 2,000 feet
of pipe -Project award date: March 2010 Location: Moore Road/La Canada to
King Air
Design Projects
-Lambert Lane water main replacement: Location: La Canada/Pusch View &
Lambert Lane -Public Works Department is currently working with Kittleson &
Associates to widen Lambert Lane to four lanes -Bid & Construction Schedule:
August and September-Oro Valley Water will begin the water main relocation prior
to Public Works construction activity.
-Three PRV modifications to exisiting system. The design phase is complete. Staff
has already completed one modification and a second is on schedule. The third will
go out to bid.
-Redesign TEP power to existing Sheraton booster station site. Construction will be
scheduled next Calendar year.
Mr. Jacklitch ended report.
c. Potable and Reclaimed Water System Report (D. Ruiz)
"Click here Potable Water Report"
"Click here Reclaimed Water Report"
Mr. Ruiz reported the following:
-December Reports:
Potable Water Report
-Daily Demand Operations Report = 4.5-6.0 million gallons (mgd) -Precipitation: 3
events
-Potable Overall Reservoir Storage = 6.5 million gallons (mgd)
Reclaimed Water Report
12 Month Usage = 640.5 million gallons
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1/11/10 Minutes, Oro Valley Water Utility Commission
-Hilton El Conquistador South Pond: The Utility will be delivering reclaimed water to
the pond in the very near future.
Mr. Ruiz ended his report.
8. DIRECTOR'S REPORT (P. Saletta)
Mr. Saletta thanked the Engineering staff for their work on finding ways to slow down
on some of the Capital Projects per Council's request to reduce the budget. He
also requested Mr. Jacklitch to give a brief update on the PRV installations and the
Utility's field staff involvement to perform this work to save costs.
a. Board and Commission Training
-1/13 Council Study Session: Council will discuss the appropriate level of training
the Town will be offering to the different Boards and Commissions. One of the topics
will be the Citizens & Planning Group.The Commission is welcome to attend
Wednesday, 1/13/10, Time: 6 P.M.
b. Status on recent GW Extinguishment Credits Purchase
-All pertinent documents have been filed with the Arizona Department of Water
Resources. We are currently waiting from ADWR that the credits have been applied
to Oro Valley Groundwater Allowance account.
c. CAP Federal and State Legislative Issues Update
Packet information: Ref: Navajo Generating Station issues involving environmental
concerns and information regarding State and Federal Legislative issues.
-Navajo Generating Station: If the environmental issue and requirements becomes
so onerous for this generating station it could impact the price of water due to
pumping costs.
d. Upcoming Meetings
1/13: Town Council Study Session @ 6:00 p.m.
1/20: Town Council meeting @ 6:00 p.m.
1/22: Arizona Water Association Water Resources 101 Conference. Commissioners
are invited to attend.
Commissioner Hoffmann reported attending a meeting of the Governors Blue
Ribbon panel water sustainability. Setup by Herb Guenther ADWR. Attendees:
Co-chair ADEQ and Co-chair Arizona Corporation Commission, Senator Nelson
(Governor's Office), Warren Tenney was also present. This meeting will be
scheduled every month. The next meeting will be Friday, February 5, Location:
ADWR Time: N/A. Committee's Goal: On a Statewide basis the amount of water
delivered either reclaimed or reuse to the customers would be 40% of all water
deliveries. Commissioner Hoffmann reported that ADWR layed off 47 employees
out of a staff of 180 on Thursday, January 7th. The Hydrology Department lost 16
employees. Commissioner Hoffmann ended his report.
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1/11/10 Minutes, Oro Valley Water Utility Commission
9. FUTURE AGENDA ITEMS
-Update: USGS Aquifer Storage Monitoring Data. Commissioner Hoffmann
mentioned that the presentation could be given February or March.
-Discuss: Public comments from the recent water rates hearing and possibly discuss
the various factors involving the costs for delivery of this water. -Develop an
educational program for the citizens. (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 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.
Oro Valley resident Doug McKee commented:
-Request presentation to Town Council regarding water usage
-Request presentation on Water sold and Usage per residential units
-Clarify size of reservoir Location: La Canada & King Air
-Update on TEP rate adjustments (water pumps)
Mr. Peterson reported:
2/04: Water Day at State Legislature
10. CENTRAL ARIZONA PROJECT VIDEOS - COMMISSION TRAINING
Mr. Saletta presented a video on CAP -101
He mentioned that the Commission will receive training credits. There were no
discussions or questions regarding the video.
11. NEXT MEETING: FEBRUARY 8, 2010 LOCATION: HOPI CONFERENCE
ROOM
ADJOURNMENT: 7:35 P.M.
MOTION: A Motion was made by Vice Chair Davis and Seconded by
Commissioner Milkey to adjourn. MOTION carried, 7-0.
Prepared by,
(31,e-Lr
Iris L. Chaparro
Senior Office Specialist
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