HomeMy WebLinkAboutMinutes - Water Utility Commission - 5/10/2010 ( LH;;)
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MINUTES .
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
MONDAY, MAY 10, 2010
HOPI CONFERENCE ROOM
11000 N. LA CANADA DRIVE
CALL TO ORDER: 6:00
ROLL CALL: 6:01
PRESENT: David Powell, Chair
Rick Davis, Vice Chair
John Hoffmann, Commissioner
Robert Milkey, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, 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
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.
At this time there were no public speakers.
1. APPROVAL APRIL 12, 2010 MINUTES Discussion and/or possible
action.
Click here for Item #1
MOTION: A Motion was made by Commissioner Tustison and Seconded
by Commissioner Shapiro to approve the April 12, 2010 minutes.
MOTION carried, 7-0.
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2. CENTRAL ARIZONA PROJECT AND CENTRAL ARIZONA
GROUNDWATER REPLENISHMENT DISTRICT PROPOSED RATES
(P. Saletta) Discussion and/or possible action regarding the proposed rate
increases for the Central Arizona Project and the Central Arizona
Groundwater Replenishment District.
Mr. Saletta reported on and presented a slide of the proposed CAGRD rate
increases. He specifically discussed the Infrastructure & Water Rights
Component of the proposed rates. Mr. Saletta gave a brief explanation of the
Tucson Active Management Area Infrastructure & Water Rights Component and
that it increases dramatically from $101 in 2009/10 to $353 in 2015/16. He
explained that the increases are due to CAGRD obligations to acquire new water
supplies and develop recharge facilities. At this time they are purchasing excess
water, but because subcontractors use significant amounts of their water
CAGRD has less excess water available to them. CAGRD purchases new
supplies and delivers it to various recharge facilities in the Tucson Active
Management Areas. Mr. Saletta also gave a brief explanation of CAGRD rates
total assessment rate and proposed increases.
The possibility of using debt financing was discussed by Mr. Saletta and he
indicated that CAGRD will be taking a closer look at their rates using debt
financing. Increases in Enrollment and Activation Fees are being objected to by
the Development community. CAGRD subcommittee will discuss the enrollment
fee issue as well as the debt financing issue at their upcoming May 20th meeting.
Mr. Saletta believed that the enrollment fees were low and could be a major
factor why CAGRD is going to existing rate payers for their steep increases.
Staff will be involved with CAGRD and plans to attend the May 20th meeting. He
explained that the development community is opposed to the $200 fee increase.
Mr. Saletta ended his report.
Question and answer session:
-What changed between last year and this year regarding water rights?
(Commissioner Milkey). Mr. Saletta shared that the ADD Water process (Acquire
Develop and Deliver) and CAGRD information regarding the acquisition costs
of water rights. They also performed and updated their operations plan and
based on their obligations they estimated between the infrastructure and
acquiring water rights a $400 million dollar project will be needed.
Commissioner Milkey understood it was a one time payment to acquire water
rights and that there was substantial infrastructure required to deliver the water,
he also felt that debt financing becomes a more attractive way of spreading it out
over more years.
Mr. Saletta gave as an example of Oro Valley's reclaimed project financing
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process and also explained the Town's future financing plan for the delivery of
CAP water. Mr. Saletta indicated that it is \.,-)ry important for CAGRD to use debt
financing to levelize rate increases and important for those new customers (new
growth) to pay their fair share through enroiiment and activation fees.
If the total assessment rates go up $44 per a/f what does it mean to us?
(Commissioner Tustison). Mr. Saletta explained we have reduced our CAGRD
obligations through our contract and ground water extinguishment credits. We
will have to apply these saving estimates into our rates analysis and CAGRD will
have to make adjustments in Oro Valley's behalf.
Mr. Saletta mentioned that Oro Valley could experience a.$50 rate increase due
to its present CAGRD consumption of 2,000-2,500 a/f per year. Estimated cost
$100,000 per year increase to the CAGRD payment.
-Tucson Water CAP wheeling (Commissioner Shapiro). Mr. Saletta stated that by
wheeling CAP water through Tucson Water interim agreement Oro Valley's
obligation through CAGRD will be reduced, however we still have a minimum
contract obligation (percentage) based on excess groundwater pumped.
There were no other questions. Mr. Saletta ended his report. No action was
required on this item.
3. UPDATE ON IGA WITH TUCSON WATER FOR CAP DELIVERY
(Commissioner Hoffmann & P. Saletta) Discussion and/or possible action
regarding the recent Cost of Service Study with Tucson Water and Metro
Water is regarding Tucson Water delivery (wheeling) of Oro Valley's
Central Arizona Project Water. This discussion may also include discussion
on the possible arrangement or future proposed Intergovernmental
Agreement for CAP delivery on a short term interim basis.
Commissioner Hoffmann reported that the Renewable Water subcommittee met
on April 27th. Staff attendees: P. Saletta, R. Jacklitch. Commissioner Hoffmann
indicated that the Utility is currently performing a Cost of Service Study for the
delivery of CAP water through the Tucson Water System. This study should be
completed by June or early part of July.
Mr. Saletta reported the following:
-Cost of Service Study Analysis: Several specific cost elements are being added
to the analysis: Operations & Maintenance, Administrative cost for the prorated
portion of the O&M and a capital charge. These elements are under review by
the consultants CH2MHill. Based on Tucson Water's infrastructure and pipeline
with no additional pumping or pressure they could deliver 4,000 AF of excess
water. It is expected that 2,000 AF will be available to Oro Valley and 2,000 AF to
Metro Water without additional or significant infrastructure improvements by
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Tucson Water. However, if Metro Water should decide delivery in a different
location Oro Valley could receive as much as 2,000 to 4,000 AF of excess water.
The Cost of Service Study will be based on the 2,000 AF amount of delivery. This
study will be conducted on a base load basis evenly throughout the year, at
approximately 167 AF per month delivery.
The study is on schedule and expected to be completed by the end of July. if
Staff is satisfied with the fees, the COS study will be presented to the
Commission for approval.
A question and discussion session occurred:
-Which area will the excess water enter O.V. system? (Commissioner Shapiro).
Mr. Saletta explained that Tucson Water has a C-zone system near Naranja and
Shannon very close to Oro Valley's pipeline and has pumping capability
to deliver it to Oro Valley's E-Zone.
-If Tucson Water's delivery is at a fix rate will it change the blending
percentages? (Vice Chair Davis). Mr. Saletta indicated that during higher
demand months there will be less CAP recharged water coming through the
system and will not be significantly different. He also mentioned that Tucson
Water had higher TDS (Total Dissolved Solids).
Where will it be blended? (Commissioner Shapiro). Mr. Saletta explained it would
come from the Naranja C-zone Reservoir and would blend into Oro Valley's E-
zone through the distribution system.
Mr. Saletta indicated that the Countryside area was indirectly receiving
renewable water supplies from two recovery wells in their distribution system.
There were no further questions, Mr. Saletta ended his report. No action was
required on this item.
4. UPDATE ON NORTHWEST WATER PROVIDERS (Commissioner
Hoffmann & P. Saletta) Discussion and/or possible action regarding the
concept of delivering our Central Arizona Project Water through recharge
and recovery. The discussion will include information regarding a study
currently underway to evaluate and prepare cost estimates for various
alternatives for the development of Central Arizona Project water.
Click here for Item #4
Commissioner Hoffmann indicated that the power point presentation primarily
focuses on recharge and recovery. He also indicated that one of the N.W. Water
Providers were considering recharging their allotment through a recharge basin
and recovering it instead of direct delivery from a reliability reservoir.
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Mr. Saletta reported that Metro Water Board at their March 9th meeting directed
Staff to pursue the possibility of recharge and recovery. Metro Water also initially
invited the other NW Water Providers to participate however the other NW Water
Providers decided to wait for Metro's results.
Mr. Saletta mentioned that Oro Valley was also doing an independent Cost Study
looking at recharge and recovery as a possibility, perhaps in lieu of direct
treatment and delivery. The Utility could possibly phase in treatment in the future.
Carollo Engine&s is currently evaluating various scenarios and cost
comparisons.
M:r. Saletta reported .hat because of the proposed water treatment process, brine
concentrate disposal are still a major issue. Various maps locating the CAP
canal, Lower Santa Cruz Recharge pond and delivery of recharged CAP water to
1-10 and Tangerine were presented to geographically show how the CAP Water
could be recharged and recovered. He explained and pointed out the Avra
Valley Recharge Facility purchased by Metro Water through an agreement with
Central Arizona Water Conservation District. Mr. Saletta also gave a brief
explanation of Metro Water's recovery wells, transmission mains and the use of
Avra Valley Recharge Project.
Mr. Saletta explained that Oro Valley is currently storing its CAP water in
the Lower Santa Cruz Recharge Facility. Oro Valley will study the possibility of
constructing additional wells and share the transmission line with Metro as
another alternative.
He also pointed out alternatives and the possibilities for a treatment plant. The
study will look at a 30,000 acre feet per year water delivery system for the NW
Water Providers (Marana, Flowing Wells, Metro Water and Oro Valley).
Discussion and question session occurred:
-Determination of alignment and distribution of pipelines east of 1-10 (Chair
Powell)
-Map Alternative B-3-2 Pipeline Alignment Summary: Mr. Saletta gave a
brief summary and pointed out the various the pipeline alignments.
-What are the advantages of building a reliability reservoir and using the aquifer
as storage (Commissioner Hoffmann). Mr. Saletta indicated that the reliability
reservoir would be less likely to occur because the Town of Marana is not in
favor of having it within their town limits. Using recharge and recovery provides
reliability and the NW Water Providers will require the Federal government,
CAWCD and CAP to provide a component of reliability regardless of the type of
delivery system.
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If we use recharge and reliability is the Santa Cruz facility large enough to
accommodate essentially 12 months of water? (Commissioner Milkey). Mr.
Saletta indicated that the facility had the capability of storing 42,000 AF and
could be expanded to 50,000 AF.
-Which entities are attached to 30,000 AF of water and can store in the recharge
facilities? (Commissioner Hoffmann). Mr. Saletta indicated that Metro, Marana,
Flowing Wells and Oro Valley are part of the 30,000 acre-feet but that other M&I
Subcontractors, CAGRD and the Arizona Water Banking Authority could store in
these recharge facilities. However CAGRD and AWBA have last priority.
-If Metro Water withdraws from the N.W. Water Providers group will it interfere
with Oro Valley's original plan? (Commissioner Tustison). Mr. Saletta indicated
that Oro Valley would do a cost comparison with respect to partnering or
independently developing its CAP Water by direct delivery or recharge and
recovery.
-Town of Marana does not want a reliability reservoir built in town limits how does
it affect us with the treatment plant project? (Commissioner Tustison). Mr. Saletta
pointed out that the proposed pump stations bypasses stations could be built for
reliability for the treatment plant. Commissioner Tustison asked about funding the
reliability reservoir. Mr. Saletta indicated that the Bureau of Reclamation and
CAWCD are budgeted to plan the facility and if this or other reliability is built, the
debt obligation will be paid back to the Federal government through CAWCD's
repayment contract.
-If we went with recharge and recovery would you still consider a requirement to
treat that water before delivery into our system? (Commissioner Milkey). Mr.
Saletta mentioned that treatment would not take place during the first phase of
the project because there would be blending in our system. The treatment
process could occur in a second phase.
-Would we be committed having Metro Water do the same thing? (Commissioner
Milkey). Mr. Saletta said there would have to be a commitment to treat included
in the agreement before sharing the pipelines.
-Is City of Tucson's water to Oro Valley being treated? (Vice Chair Davis). Mr.
Saletta indicated it is treated through recharge and recovery and it is ph balanced
and chlorinated. It is not treated through microfiltration or reverse osmosis. Mr.
Ruiz gave a brief explanation regarding Tucson's treatment of recharged and
recovery water, such as ph adjustment, disinfection. He also explained the only
treatment that would be considered after recharge and recovery is reducing Total
Dissolved Solids (TDS). Mr. Saletta also indicated that currently Oro Valley's
water was very low in TDS.
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Commissioner Shapiro was concerned how long the studies were taking
and construction of the project. Mr. Saletta explained that although construction
labor has been lower. materials and pipe have not gone down that much. He felt
from a management stand point it was better to consider Tucson Water's Interim
Agreement defer costs instead of burdening ourselves right away. Chair Powell
stated, we absolutely don't want to miss opportunities that are coming our way
during the timing phase of this project, but it is important to continue with proper
planning and that it is completed properly. Mr. Ruiz emphasized that the Utility
was not collecting impact fees that could help,pay for.the infrastructure because
of the economic down turn.
Mr. Saletta also said, Oro Valley has reduced its groundwater production by 20%
due to renewable water supplies through the reclaimed water system. We are
also collecting the GPF to payoff the reclaimed water system in addition to
impact fees. He felt that the Utility was headed the right direction in terms of
timing.
A discussion occurred regarding the possibility of a landfill project near Marana
and water quality issues. (Commissioner Shapiro). Commissioner Hoffmann felt
it could be beneficial to find where Marana's landfill was located relative to the
proposed recovery wells, also the direction of groundwater flow and information
on groundwater level declines. Mr. Saletta assured the Commission that Staff
would be checking all water quality issues.
There being no further comment or questions, Mr. Saletta ended his report. No
Action was required on this item.
5. UPDATE ON CAP WATER STUDIES (Commissioner Hoffmann & R.
Jacklitch) Discussion and/or possible action regarding the study for the
delivery of treated Central Arizona Project Water into the Oro Valley Water
Utility water distribution system.
Click here for Item #5
Commissioner Hoffmann introduced the next item CAP Water Distribution and
Delivery Study.
Mr. Jacklitch reported that the study focuses on CAP wheeling of Tucson's Water
through the Town's distribution system at Naranja and Shannon Road. A power
point presentation was given.
The following information was covered in the power point presentation:
Slide 1 - Phase 1 Evaluation (Tucson Water Delivery Concept)
Objectives:
CH2MHill collects data from Tucson Water and the Town. Evaluate impacts to
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the Town's distribution system. Evaluate water quality. Phase 1 evaluation
assumes minimal infrastructure improvements to the Town's system.
Slide 2 - CAP Delivery Point CAP (recovered water)
Point of Delivery will be Naranja and Shannon Road. Total recovered water
6,500 AFY = 3,000 AFY(acre-feet per year), CAP + 3,500 AFY GW (ground
water). CH2MHill will perform another scenario at 7,500 AFY. Mr. Jacklitch
stated that there would be an increase of 1 ,000 AF of ground water the amount
of CAP water will not change.
A discussion occurred on:
-Tucson Water's delivery to areas near Oro Valley. Mr. Saletta pointed out
several areas receiving Tucson Water such as Ironwood Ridge, Wilson School
and Hardy and Northern areas.
Slide 3 - Preliminary Conclusions - Phase I
-Pipe flow direction -Some of the system currently has flow reversal -
Limitations on existing system to receive CAP Water -Town system will require
infrastructure improvements and operational changes to our well field. -Limited
capacity to move water from proposed connection point to the east and northeast
portions of system -System improvements will be identified in Phase 2
Slide 4 Conclusions
-Limited Usage of Recovery wells Hydraulic limitation -Recovery wells located in
southwest of system cannot provide supplies to east and northeast portions of
system -Unequal blending of groundwater and delivered CAP (E and Fl zones
receive primarily delivered CAP water, Remaining zones receive various, but not
equal, blending ratios of delivered CAP and groundwater -Water Quality
(Average TDS: 223 mg/I All water quality parameters well below SMCL)
-Minimal potential for scaling or de-scaling
A discussion occurred regarding Oro Valley's permitted recovery wells,
groundwater reduction and CAP water delivery.
Slide 5 Looking ahead to Phase 2 Evaluation
-Objective: Evaluate CAP water delivery and distribution system scenarios and
cost evaluation of alternatives -Identify infrastructure costs and provide capital
improvement costs for Phase 1
There being no further questions, Mr. Jacklitch ended his report. No action was
required on this item.
6. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Council Member
Carter)
Councilmember Carter not present and no report was given.
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7. SUBCOMMITTEE/COMMISSIONER REPORTS
a. Finance Subcommittee (Commissioner Tustison)
Commissioner Tustison had no report.
b. Conservation Subcommittee (Commissioner Davis)
Commissioner Davis reported that the subcommittee met on May 3rd. He also
reported on the following:
-A WIFA Grant has been applied for by the Water Utility and it is a cost sharing
grant for a study that will focus on water efficiency and causes of water loss.
-Water Loss Program
This program includes a water system auditing program, performing leak
detection on a small percentage of the distribution system, developing a leak
detection program, monitoring unmetered flow program
Energy Efficiency and Water Conservation program
Discussion of the proposed Town Complex Landscape Project -Covered
parking would support solar panels will offset 60% total annual power consumed
by the Town's facility. The Conservation subcommittee was tasked with assisting
in plant pallet and plant placement based on location of the covered parking and
solar panels.
Discussion of Southern Arizona Water Wise Landscape CD
Commissioner Davis handed out a DVD entitled: Southern Arizona Water Wise
Landscaping. This project was funded by ADWR and Bureau of Reclamation.
The CD contains plants suitable for the desert how to maintain and grow them.
Oro Valley has over 3,000 copies available for distribution.
Over 26 audits were completed in April. Highest number of audits completed for
the month of April except for 2005.
Amber Ridge HOA- Amber Ridge was one of the major areas that was audited.
They are very interested in identifying leaks and other maintenance issues.
-Landscape Ordinance- The subcommittee is developing Standard Operating
Procedures (SOP) for the new Landscape Code which will go into effect June
2010.
Commissioner Davis ended his report.
c. Renewable Water Resources Subcommittee (Commissioner Hoffmann)
Commissioner Hoffmann had no report.
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8. STAFF REPORTS
a. Customer Service Report (S. Seng)
Click here for item A
Meter Installation as of April 30, 2010
Projected Meter Installations for FY 09-10: 60
Actual Meter Installations for FY Q9i0: : 57
Projected EDUs for FY 09-10: 90
Actual EDUs for FY09-10: 74
Ms. Seng ended her report.
b. Capital Project (B. Jacklitch)
Mr. Jacklitch reported the following:
-Innovation 16-inch Water Main Installation - Pipeline installation is complete.
-Replacement Well E-1 B: Location: Tangelo and First Avenue. The plan design
for equipping the facility is 100% complete. Drawings are under review by Public
Works/Planning & Zoning Department. This project will be scheduled for
advertisement in June.
-Modification of 3 Pressure Reducing Valve Stations: All three PRV stations are
100% complete.
Design Projects
-Lambert Lane Water Main Replacement: Location: La Canada & Pusch View
Lane. The plan design is about 60% complete. Water Utility staff continues to
coordinate its work with Public Works and road improvements.
-Sheraton Booster Station: Staff is currently doing additional design work
electrical and pipeline configuration changes.
Mr. Jacklitch ended his report.
c. Potable and Reclaimed Water System Report (D. Ruiz)
Click here for April 2010 Potable Water Reports
Click here for April 2010 Reclaimed Water System Report
Click here for April 2010 Potable Water Reports
April Reports
Potable Water Report - 2010
-Daily Demand = 4.0 - 7.0 Million (mgd). All wells will be ready for summer peak
demand.
Potable Overall Reservoir Storage = 7.0 (mgd)
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Reclaimed Water Report - 2010
Total Demand = 57.0 (mgd)
-South Hilton Golf Course: South pond will receive reclaimed water in a few
weeks.
Mr. Ruiz ended his report.
9. DIRECTOR'S REPORT (P. Saletta)
Mr. Saletta reported the following:
i[ c .n_WAtForum — This forum was held on April 28th Attendee: P. Saletta,
Commissioner Milkey, Councilmember Snider
Topics: Navajo Generating Station, Climate change and Colorado River
shortages, ADD water Process, CAGRD, Tucson Area Reliability discussion. Mr.
Saletta participated in panel.
Bond Defeasance closed April 29. The Town will save about $300,000 in debt
service obligation for the next several years for a total savings of approximately
$32,000 in interest.
-Handout: Colorado Water River Snowpack report - Mr. Saletta indicated that the
upper water shed of the Colorado River was in the 70%- 89% in terms of
snowpack. Arizona's higher elevations have a considerable amount of snowpack
but the lower portion has decreased.
Upcoming Meetings
5/19: Council meeting Topic: Tentative adoption of budget
5/20: CAGRD meeting
6/02: Council meeting
6/08 - 6/09: WRRC Conference, Commissioner Reynolds will attend June 9th.
6/14: WUC meeting
Mr. Saletta ended his report.
10. FUTURE AGENDA ITEMS
There were no future agenda items suggested.
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.
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No blue cards were submitted and no one from the audience spoke.
NEXT MEETING: June 14, 2010 Location: Hopi Conference Room
ADJOURNMENT: 7:33 p.m.
MOTION: A Motion was made by Commissioner Shapiro and Seconded
by Vice Chair Davis to adjourn.
MOTION carried, 7-0.
Prepared by,
a,„Iris L. Chapar ,uo
Senior Office Specialist
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