Loading...
HomeMy WebLinkAboutMinutes - Water Utility Commission - 2/8/2010 ale t "° APPROV _ Ji MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION MONDAY, FEBRUARY 8, 2010 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER: 6:01 ROLL CALL: 6:03 PRESENT: John Hoffmann, Commissioner Robert Milkey, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner Winston Tustison, Commissioner EXCUSED: Dave Powell, Chair Richard Davis, Vice Chair Commissioner Tustison chaired the meeting 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. No speakers. 1. APPROVAL OF JANUARY 11, 2010 MINUTES Discussion and/or possible action. Click here Item #1 Draft minutes 8 t 2/08/10 Minutes, Oro Valley Water Utility Commission MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Hoffmann to approve the minutes as amended. MOTION carried, 5-0. Page #6 - Dollar amount should be $18,000,000 instead of 18,000.000 Page #9 —Add to Renewable Water Resources subcommittee, Commissioner Reynolds in attendance. Corrections: Page 6 and Page 9 per Commissioner Reynolds. 2. UPDATE ON TUCSON WATER WHEELING OF ORO VALLEY'S CAP WATER (P. Saletta) Discussion and/or possible action regarding an update on the Cost of Service Study for the proposed wheeling (delivery) of Oro Valley's Central Arizona Project Water through the Tucson Water System. Mr. Saletta reported on Tucson Water's delivering ("wheeling") of Metro Water's and Oro Valley's Central Arizona Project Water. -CAP Wheeling Concept: Tucson would recharge and store Oro Valley's CAP water in their recharge and recovery facilities for delivery to Oro Valley. Mr. Saletta touched on several key highlights discussed with Consultants CH2M- Hill. -Determine dollar amount per volume per acre-foot basis -Metro Water and Oro Valley are expecting deliveries at a range of 3,000-5,000 a/f per year for each of us. Based upon this range, the cost of service study will be performed at 4,000 a/f per year. - Costs associated with delivery to Oro Valley Water at the Naranja reservoir owned and operated by Tucson Water. This is located at Naranja and Shannon further than where Metro Water would take delivery into their system. -CAP canal recharge deliveries may be constant on a monthly basis e.g. 300 a/f per month. Oro Valley would like to pace deliveries in an agreed upon range based on demand. -The Intergovernmental Agreement should be in place and approved by various Councils and Boards in September 2010. This allows Oro Valley Water to have the IGA in place prior to any orders from the Central Arizona Project due every October 1st of each calendar year. -The Water Quality and Distribution Study Phase 1 by CH2MHILL and Staff should be completed during the same period. 2 2/08/10 Minutes, Oro Valley Water Utility Commission -Tucson Water deliveries to Oro Valley could begin in Spring of 2011. Mr. Saletta ended his report. Questions and answer session occurred. -When do you expect the Scope of Work from the Consultant? (Commissioner Tustison). Mr. Saletta indicated that the Scope of Work was expected next week for Staffs review. It will take four to five months and possibly completed by the consultant's end of July. Staff could be ready to present it to the Commission July or August and to Council in September. Question and answer session occurred. -Would we be able to predict how much water will be needed? (Commissioner Shapiro) Mr. Saletta mentioned that delivery could be as much as 3,000-5,000 a/f per year or as low as 2,000 a/f the first year. Depending on demand during the year, delivery on a monthly basis could be 200-400 a/f per month. In response to Commissioner Shapiro, Mr. Saletta gave a brief description of Tucson's Water Naranja reservoir located at Naranja & Shannon and Oro Valley's pipeline connection. He also mentioned there would not be a significant amount of infrastructure required by Oro Valley for the purposes of CAP Wheeling. Mr. Saletta pointed out that Ironwood H.S. and Wilson Elementry in Oro Valley are getting Tucson's water deliveries. This is the same distribution system Oro Valley will be receiving its CAP water deliveries. Mr. Ruiz gave a brief explanation regarding blending procedures, recharge/well sites and pH compatibility. Commissioner Tustison asked what was the quality for delivery of 2,000 thru 4000 a/f? Mr. Saletta indicated that O.V. Water Quality and Distribution Study Phase I together with Tucson's Water Quality information will determine the TDS (Total Dissolved Solids) water levels available for delivery. Water Quality and blending will take into consideration total dissolved solids, pH, chlorination, logistics, direction of flow, and flushing the system. Mr. Ruiz explained there could be some physical constraints such as closed valves, zone boundaries, and different service areas. We must find the most efficient ways of serving these areas. -Is there a chance to see CH2MHill's report or have them present their analysis? (Commissioner Hoffmann). Mr. Saletta indicated that the consultants 3 2/08110 Minutes, Oro Valley Water Utility Commission could make a presentation and the report will be available to the Commission for review. Commissioner Hoffmann suggested including CH2MHILL Water Quality and Distribution Study Phase 1 draft report and the Cost of Service Study as future agenda items in June or July. Mr. Saletta mentioned that both reports should be completed by Spring-2011 and it would be placed on the WUC Agenda. There were no further questions, Mr. Saletta ended his report. No Action was required on this Item. 3. DISCUSSION OF GROUNDWATER PRESERVATION FEE (P. Saletta and S. Seng) Discussion or possible action regarding the use of the Groundwater Preservation Fee for the payment of any and all renewable water delivered into the Oro Valley Water System. Mr. Saletta reported the following: -Packet item: Description of the Groundwater Preservation Fee used in the 2003 Water Rates Report. -GPF Concept: Provide funding for Renewable Water Resources which included the Reclaimed Water System and its construction in 2004. The GPF was recommended by the Commission and adopted by Council in fall 2003. Key Components: -GPF will help finance delivery systems that will provide renewable water supplies to the Town of Oro Valley. This was the basic principle to obtain funding and to move forward with Renewable Water Supplies. -Preservation of groundwater supplies was also a major factor in terms of having this GPF. -Existing customers would pay their fair share. Mr. Saletta gave a brief description of the groundwater deliveries in 2005 and the importance of the reclaimed water system in reducing groundwater usage. The goal will be reduce groundwater delivery to 5500 a/f per year. -Repay debt associated with capital improvements. The GPF is not intended to be used for operating/maintenance costs associated with the renewable water system operated by Oro Valley. -Sources of Funds for Reclaimed Water: The GPF will be a source of revenue that will be used to repay bonds sold to help finance the reclaimed system. 4 2/08/10 Minutes, Oro Valley Water Utility Commission Mr. Saletta explained that when we use excess capacity through Tucson's Water system we defer capital expenditure. This is the financial basis for using the GPF to make outside payments for delivery and/or source of supply. The GPF will not be used for O&M such as chlorination or other infrastructure maintenance performed by Oro Valley Water Utility. Mr. Saletta explained that he would like the Commission/Finance Subcommittee to consider the flexibility of using the GPF to make outside payments to Tucson Water as mentioned in the CAP Water Wheeling agreement. The Finance Subcommittee meeting is tentatively set February 25 to discuss the GPF concept. Ms. Seng gave a brief explanation about the GPFs adoption. The Finance Subcommittee will evaluate and expand the concept of using the GPF for Tucson Water's CAP Wheeling. What is the expense and magnitude for Tucson's Water delivery and will the preservation fee be sustainable? (Commissioner Hoffmann) Mr. Saletta indicated that the GPF cost from Tucson Water would be based on a per acre foot basis and has not been included in the five year projections. Commissioner Milkey felt it would be premature having the Finance Subcommittee meet without having a per a/f cost estimate from Tucson Water. Mr. Saletta indicated that they would be reviewing the concept and trying to estimate costs. We need to review the concept, if it turns out that Tucson Water is too expensive it probably will not happen. He emphasized that having the GPF component in place will give the Utility the flexibility to possibly pay for CAGRD costs also. He emphasized that for every acre foot of CAGRD paper water the Utility gets we pay $300 a/f, this concept would significantly reduce those payments. Mr. Saletta stated that we need to proceed at the Finance Subcommittee level with the concept of using the GPF for these purposes. Commissioner Milkey requested clarification about the payment arrangements with Tucson Water for deliveries to Oro Valley. Commissioner Milkey felt comfortable with Staff's proposal to use the GPF to cover the differences in the CAGRD payments. Mr. Saletta mentioned that after the Finance Subcommittee meets they will report their findings to the Commission. There were no further questions. Mr. Saletta ended his report. No Action was Required on this Item. 5 2108/10 Minutes, Oro Valley Water Utility Commission 4. UPDATE ON TUCSON/PIMA COUNTY WATER AND WASTEWATER STUDY (P. Saletta) Discussion and/or possible action regarding an update on the City of Tucson /Pima County Water and Wastewater Study and draft comments on the Phase 2 Report. Mr. Saletta indicated that he submitted draft comments regarding the City of Tucson/Pima County Water and Wastewater Infrastructure Study. The City of Tucson Council will discuss this item at a Study Session and will review all the comments by the various water entities and residents with respect to their acceptance of the Phase 2 Report. Mr. Saletta reported the following: -This was a public process instituted by the City of Tucson and Pima County. They appointed various representatives from Pima County and the City of Tucson to an oversight committee. The study and committee focused on wastewater service areas in the City of Tucson & Pima County. They also reviewed growth areas beyond the service area. The Arroyo Grande area was not included. At the beginning Oro Valley attended several meetings but as they focused in their joint service areas Oro Valley did not attend any other meetings. The Town of Oro Valley, Town of Marana and Metro Water did not feel that the recommendations in the Study are or were applicable to them or other jurisdictions outside the joint service areas. Mr. Saletta outlined several of the comments submitted by Oro Valley: -Any recommendations made would only apply to Tucson Water and Pima County Wastewater areas and will not interfere with any of Oro Valley's water supply such as groundwater, reclaimed water, CAP water or effluent. -If the next phase of the study were to continue, it should not proceed unless there is adequate and fair representation for other water providers that participate in the process. -City of Tucson Council Study Session is scheduled February 9, 2010, Time: 5:30 p.m. City of Tucson will formerly accept the Study at their February 17, 2010 Council Meeting. Commissioner Shapiro asked about Phase 2 of the Study. Mr. Saletta indicated that Phase 2 was the final report that was reviewed. Phase 3 of the Study would probably include all the other water providers if they intend to move forward towards a more regional study with adequate representation of the participating water providers. 6 2/08/10 Minutes, Oro Valley Water Utility Commission There were no further questions, Mr. Saletta ended his report. No Action was Required on This Item. 5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Carter) Councilmember Carter indicated that Staff will need to make a strong effort and be prepared to answer all questions on Item #3. Councilmember Carter also gave a brief update on the Home Rule Election item. Councilmember Carter ended his report. 6. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Tustison had no report. b. Conservation Subcommittee (Commissioner Davis) -The Finance Subcommittee met a week ago. -Review: Conservation education volunteer program -Review: Drought Response Plan triggers & responses. The Subcommittee will be working on revising the current Drought Response Plan and will present it to the Commission. The Subcommittee will also continue to meet once a month. c. Renewable Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Hoffmann had no report. 7. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported on Meter Installations as of January 31, 2010: Total Metered Connections = 18,406 Current Meter Installations as of 1/31/10 = 5 Actual New Meter Installations as of 1/31/10 = 33 -Projected EDUs for FY 09-10: = 90 -Actual EDUs as of 1/31/10 = 41 Update: Meter Replacement Program This program was implemented July 2008. Staff has currently replaced over 800 meters ranging from 5/8 to 6 inch meters and is averaging about 44 meters per month. Staff is in the process of calculating the increase in water usage and any revenue increases resulting from these replacements. 7 2/08/10 Minutes, Oro Valley Water Utility Commission Automated Meter Reading (AMR) At the Highlands Mobile Park 287 AMRs have been installed. Oro Valley Market has been completely equipped with AMRs. -The Campo Bello area was recently equipped with 168 AMRs. With all these improvements and by reducing their meter reading time by 1 full day staff has been able to continue with their meter replacement and other maintenance projects. -Next AMR project: Mercado Del Rio Shopping Center. Location: Pusch View Lane/West of Oracle Ms. Seng ended her report. b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported the following: -Innovation 16-inch Water Main Installation: The main is 100% installed. Currently looking to tie in to the hospital. Project Completion: March 2010 -Replacement Well E-1 B: The engineering design for the site facility will be completed in March. As soon as this is completed the project will go out for public bid. Construction: 4-6 month period -North La Canada reservoir: Location: King Air/Moore. The reservoir and the 24- Inch main are tied together. A Notice to Proceed will be issued next month so that construction can begin as soon as possible. These projects will involve two separate contractors. The reservoir is a pre-stressed buried concrete reservoir. Construction: 10-12 months -24-Inch pipeline construction: 6 months -Modification of 3 pressure reducing valve stations: Staff has completed 1 station on Lambert Lane and currently beginning work on another station located on La Canada & Linda Vista. Staff is currently working on a Request for Proposal for the third station location: La Reserve Area. Design Projects: -Lambert Lane: Public Works is currently working on the design and will be widening the road to four lanes. Location: Lambert Lane/La Canada/to Push View and bridge. Oro Valley Water will have to relocate several water mains and has issued a Notice to Proceed to Brown and Caldwell. They are currently working on the design phase of this project. -Redesign Hilton Booster Station: The Design phase will be finished by next month and the project will go out to bid. -CAP Water Distribution Study: CH2MHill is currently working on the Study. We have completed the Scope of Work and are working on the contract. A Notice to Proceed will be issued in the next few weeks. 8 2/08/10 Minutes, Oro Valley Water Utility Commission Mr. Jacklitch ended his report. c. Potable and Reclaimed Water System Report (D. Ruiz) Click here Potable Water Graph January 2010 Click here Reclaimed Water Graph January 2010 January Reports Potable Water Report Daily Demand = under 6 million (mgd). Oro Valley has experienced a significant amount of rain. Potable Overall Reservoir Storage = 4-6 million gallons (mgd). Reservoirs are kept roughly under 7.0 (mgd) Reclaimed Water Report -Investigate why End User 3 water consumption was high compared to other golf courses. -Total Usage for 6 End Users = 17.3 (mgd) Hilton El Conquistador South Pond: No reclaimed water usage at this time. The pond will receive reclaimed water possibly in 2-3 weeks. Mr. Ruiz ended his report. 8. DIRECTOR'S REPORT (P. Saletta) Mr. Saletta indicated that the 16 inch Main project was completely managed in- house. He thanked Mr. Moore in the New Development area who was able to manage the project. The Utility was also able to save money by using its own internal project manager and inspectors. a. Commission Training Hours Report -Packet: Provided Commission Training spreadsheets. Any discrepancies comments or questions may be directed to the Director or the Office Specialist. Mr. Saletta thanked the Commission for their time and training effort. He pointed out that Planning & Zoning Department was looking into implementing new courses for all Commissions and Boards. b. CAP Activity on Navajo Generating Station Mr. Saletta reported the following: -Mr. J. Peterson attended several CAP meetings regarding the Navajo Generating Station. Mr. Saletta reviewed several of the steps Central Arizona Project staff was taking on behalf of the CAWCD Board. 9 • s 2/08/10 Minutes, Oro Valley Water Utility Commission -Review: EPA recommendations at Navajo Generating Station -This station is a coal fired plant. - CAP has about 24% share in this plant and receives 95% of its demand from this plant. -EPA has investigated CO2 (Carbon Dioxide) - greenhouse gases, NOx (Nitro Oxide)-visibility and Sulfur Dioxide effects generated from this plant. -CAP concerned about the requirements for electric generating stations and increase costs associated in complying with EPA recommendations. Key focus: Nitro Oxide/various technology methods available. EPA at this time is recommending a very expensive form of technology dealing with catalytic conversion. This new technology could cost as much as 40 million to a billion dollars. CAP Staff will be looking at a public education process to notify the public how these costs will impact water rates. -CAP's plan was emailed to the Commission. Mr. Saletta informed the Commission that the CAWCD Board is taking the issue very seriously. Mr. Peterson indicated that CAP Board had provided a list of commitments and included providing public information via visual aids and various presentations to Southern Arizona. Commissioner Tustison agreed with Mr. Peterson that certain organizations should be available for speaking engagements. Commissioner Milkey indicated he did some research through the EPA and the Federal Registrar. He mentioned that only 2 items were of concerned to EPA: Control Nitrogen Oxides and particulate matter. There were no issues regarding climate change or greenhouse gases. Commissioner Milkey pointed out that in terms of Nitrogen Oxide emissions that the Four Corners plant was rated No.1 in the country and the Navajo plant was No. 4. Commissioner Milkey made several comments regarding: -Costs versus benefits, Catalytic reductions and mitigation of greenhouse effects and retrofitting power plants. c. Upcoming Meetings -2/09: Tucson City Council Study Session -2/17: Town Council Meeting -2/24: Town Council Study Session Topic: Bonds -2/25: Finance Subcommittee Topic: Bond Defeasance -3/03: Town Council -3/08: Water Utility Commission 10 2/08/10 Minutes, Oro Valley Water Utility Commission 9. FUTURE AGENDA ITEMS -March or April: USGS Aquifer Storage Findings (Commissioner Hoffmann) -Field Trips: Tucson Water Recharge Facility Ref: CAP Water Wheeling (Commissioner Tustison) -Field Trips: Capital Projects (Commissioner Tustison) 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. No Audience Comment. CENTRAL ARIZONA PROJECT VIDEOS - COMMISSION TRAINING Two CAP video presentations were given. -Central Arizona Project's Recharge Operations -An introduction to the CAGRD NEXT MEETING: MARCH 8, 2010 LOCATION: HOPI CONFERENCE ROOM ADJOURNMENT MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Hoffmann to adjourn the meeting. MOTION carried, 5-0. Prepared by, ice- '- 6-c.) Iris L. Chaparro Senior Office Specialist 11