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HomeMy WebLinkAboutMinutes - Water Utility Commission - 6/14/2010 1112.1 2.010 DDD . . M I ITEM (7) I# 1 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION MONDAY, JUNE 14, 2010 HOPI CONFERENCE ROOM M 11000 N. LA CANADA DRIVE CALL TO ORDER - AT OR AFTER 6:00 P.M. ROLL CALL: 6:01 PRESENT: Richard Davis, Vice Chair Robert, Milkey, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner EXCUSED: Dave Powell, Chair John Hoffmann, Commissioner Winston Tustison, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director David Ruiz, Engineering Division 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. At this time there were no public speakers. 1. APPROVAL MAY 10, 2010 MINUTES Discussion and/or possible action. Click here for Item #1 MOTION: A Motion was made by Commissioner Elizabeth Shapiro and Seconded by Commissioner Robert Milkey to approve the May 10, 2010 minutes. MOTION carried, 4-0. 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 2. UPDATE ON CENTRAL ARIZONA WATER CONSERVATION DISTRICT AND CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT WATER RATES (P. Saletta) Discussion and/or possible action regarding the Central Arizona Water Conservation District and the Central Arizona Groundwater Replenishment District water rates. Discussion may include an overview of the existing agreement with CAGRD. Mr. Saletta reported the following: -Central Arizona Project Packet Information: CAP recently approved CAWCD (Central Arizona Water Conservation District) Rate Schedule for CAP & CAGRD Water. Mr. Saletta discussed the different breakdowns for Municipal & Industrial classifications. He explained that Oro Valley pays a long term subcontract rate. Schedule: Years 2010 = $118, 2011= $122.00, 2012 = $122.00, 2016 up to $141.00 per acre foot (AF). -Rate Components: Capital charge $15 per AF based upon full allocation of 10,305 AF. Mr. Saletta also pointed out that the capital rate was tapering off based on the financial projections from the Navajo Generating Station revenues. CAGRD expects after year 2015-2016 they will be able to payoff the rest of the CAP project with Navajo Generating Station revenues. The 2010/2011 rates have been confirmed and 2011-2012 and remaining years are considered as Advisory Rates approved by Central Arizona Board. He explained that the 2012 rates are provisional rates. Unless there is a reason the Board can review these rates it could than become a firm rate if there is no action on behalf of Staff or Board. -Central Arizona Groundwater Replenishment District Rates Mr. Saletta reported on the Tucson Active Management Area. Increases are projected to be $333 per AF in 2010 and increase to $617 per AF in 2015. There is only one year affirmed rate the remaining years are Advisory rates. The Board will plan to take a closer look at the projected proposed rates over the next year. Oro Valley Water Utility Staff raised two major concerns: CAGRD should consider debt financing for the acquisition and development of water and that the Enrollment and Activation fees may not be high enough for new growth and development. One of the aspects driving the CAGRD rate increase is the Infrastructure and Water Rights component. This component is expected to be $101 per AF in 2009/10 and increase to $353 per AF in 2015/16. The CAGRD just received bonding authority through State legislation for debt financing. Mr. Saletta also indicated that the Utility will look into how to incorporate these increases into the water rates analysis. 2 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION Question and Answer session occurred: -What kind of infrastructure is involved? (Commissioner Milkey). Mr. Saletta indicated that the infrastructure would be based on acquisition of water rights, the building of recharge facilities and delivery pipeline improvements for CAGRD water. In terms of payments for the M&I Rate Long Term Subcontract and Capital, are there costs per acre foot for delivery charges coming out of that? (Commissioner Reynolds). Mr. Saletta indicated that the delivery charges are coming out of that amount as indicated for schedule B & C and verified that the cost is $118 per AF for the delivered amount plus the $15 per AF capital charge for our entire allocation amount. Is the Navajo Generating Station mostly owned by CAP? (Commissioner Shapiro). Mr. Saletta explained ownership is 24% by CAP, 21% L.A. Water& Power Authority, with other owners including Arizona Public Service and the Navajo Nation. -Is CAP's electricity generated from the Navajo Generating Station? (Commissioner Shapiro). Mr. Saletta confirmed that CAP obtained its electricity from the generating station and that EPA was concerned about the environmental issues surrounding the station. Mr. Saletta confirmed that rates would increase as a result of additional environmental regulations. -Do we know when the rule will be finalized? (Commissioner Reynolds). Mr. Saletta said there was a 90-120 day extension on the rule and CAWCD has taken an active role on the proposed regulation. Mr. Saletta gave a brief explanation regarding nitric oxide particles and EPA's concern about visibility issues. -How are these Advisory rates going to be incorporated into the five year financial scenarios and are we going to work on a model incorporating the CAP Rates? (Commissioner Milkey). Mr. Saletta indicated that several different scenarios will be worked on. Staff is currently looking into debt financing their projects which will dramatically reduce what has been proposed in terms of cash funding and building up reserves. Commissioner Milkey was concerned about rate shock and urged Staff to run various scenarios in the event the rates would prevail. There were other no questions. Mr. Saletta ended his report. No action was required on this item. 3 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 3. DISCUSSION REGARDING RECOVERY WELLS (D. Ruiz) Discussion and/or possible action regarding Oro Valley's current recovery wells and the proposed application for additional recovery wells. Mr. Ruiz reported the following: Mr. Ruiz indicated that recovery wells allow the water provider to recover groundwater credits. Each acre-foot of recovered groundwater pumped from the aquifer reduces the water provider's financial liability to the Central Arizona Groundwater Replenishment District (CAGRD). We currently have 8 productions wells permitted by ADWR as recovery wells. Two existing wells are located in the Countryside area. Three years ago we applied for 12 and were approved for only 6 recovery wells. In 2009 we recovered 2,753 AF of water about 1/3 of groundwater pumped. For a well to be permitted as a recovery well it must meet certain criteria set by Arizona Department of Water Resources (ADWR). ADWR requires that the five- year average draw down or groundwater decline of a recovery well not exceed more than 4-feet. We are in the process of submitting an application to ADWR and Staff is currently evaluating the groundwater data for all the wells. We will be submitting the application and data to ADWR for the additional 6 to 8 wells. We currently store water through Kai Farms, and Avra Valley and Lower Santa Cruz recharge facilities. Mr. Ruiz explained two types of facilities: Groundwater Storage Facility (GSF), Kai Farms uses our stored water in lieu of pumping groundwater and Underground Storage Facilities (USF) such as Avra Valley and Lower Santa Cruz Recharge Facilities. A question and discussion session occurred: -We currently recovered 2,700 AF of water from the recovery wells last year, how much did we deposit? (Commissioner Milkey). Mr. Ruiz explained that a total of 4,000 AF was recharged, and currently we have approximately 17,000 AF of Long Term Storage Credits. -Why were the 6 wells that weren't approved rejected? (Commissioner Milkey). Mr. Ruiz explained the six wells that were rejected exceeded the allowable five year average decline of 4-feet. -Does the recovery well permit last forever must they be re-qualified? (Commissioner Milkey). Mr. Ruiz indicated they are reviewed periodically by ADWR and if their decline starts to exceed the allowable they will be reclassified to non-recovery wells. 4 . 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION -Can Long Term Storage Credits be used for something else to reduce our costs? (Commissioner Shapiro). Mr. Saletta explained that the Long Term Storage Credits could be used to reduce CAGRD costs. Mr. Ruiz emphasized that using reclaimed water has helped by saving our groundwater and reducing payments to CAGRD. This year's rate of decline has been reduced which has allowed us to get the 5 year average under 4 ft for the six wells we will be applying for recovery well permits. The declining economy has affected water demand. -Are the current recovery wells maintaining the 4 ft average per year? (Commissioner Reynolds). Mr. Ruiz mentioned they have improved during the past year. There were no other questions. Mr. Ruiz ended his report. No action was required on this item. 4. UPDATE AND DISCUSSION REGARDING ORO VALLEY WATER SYSTEM OPERATIONS (D. Ruiz, G. Kendrick, M. Kobida, C. Soper) Discussion and/or possible action regarding the operation for the Oro Valley Water System. Discussion may include information on production and distribution operations and water quality. Click here for Potable Water Reports Mr. Ruiz gave an update on the Utilities Operational Divisions: -Production Division - Maintains wells, pumps and motors, chlorination, electronic and electrical equipment. Mr. Ruiz gave a brief explanation about the chlorination process, checking of end points and chlorine residuals in the distribution system resulting from chlorination. Production Division - SCADA Control (Supervisory Control and Data Acquisition) -Every well, booster station and reservoir is equipped with electronic sensing and transmitting equipment. -Are chlorine levels higher for Reclaimed than Potable Water? (Vice Chair Davis). Mr. Ruiz indicated that the chlorine levels could go as high as 4 parts per million without it being a problem but we try to maintain it at 0.5 parts per million at the well, at the end point it should be no less than 0.1 parts per million. Mr. Ruiz demonstrated the SCADA System (Supervisory Control and Data Acquisition). SCADA Operators - 1 Supervisor, 1 Lead Operator, 5 Water Utility Operator II. The Utility operates a 24-7 SCADA monitoring and operational system. Mr. Ruiz 5 . 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION presented an interactive schematic of the Reclaimed Water System and gave a brief explanation of how SCADA works and demonstrated by selecting several production sites, Linda Vista tank and booster station, C7 recovery well, Big Wash facility, and the Countryside system. SCADA Security Issues- Intrusion by unauthorized personnel can be sensed by security devices and will notify the Operator. Procedure: If an intrusion is suspected the Police Department is notified. Several video devices have also been installed at these facilities. In answer to Vice Chair Davis question, Mr. Ruiz indicated that the SCADA System is automated, Staff will only over ride the system if they detect a problem. Mr. Ruiz covered operational trends of the system, well production, and reservoir capacity and booster station operation. -Can you detect breaks in the main line? (Vice Chair Davis). Mr. Ruiz indicated that you could detect pressure drops as well as dropping reservoir levels which could be indicative of a leak but not leaks per se. -If you see the pressure dropping can you shut off it off automatically? (Commissioner Shapiro). Mr. Ruiz said, we are trying to retrofit remotely controlled isolation valves at the reservoirs in the event of a break. There were no other questions. Mr. Ruiz ended his report. No action was required on this item. Click here for Reclaimed Water Reports Reclaimed Water Report 2010 - Mr. Ruiz reported the following: -The south pond has been on line as of Friday, June 11th. There is no usage on this month's report however; next month you will see a substantial amount of usage. -Total Demand for the month of May was 77.3 million gallons. Potable Water System - 2010 -Total Daily Demand = 8.0 (mgd) - Reservoir levels remain steady -Distribution Division - Routine maintenance continues and includes exercising valves, repairing fire hydrants, maintaining and rebuilding air release and pressure reducing valves, bluestaking and repairing leaks. 6 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION -Replacement of large diameter meters is scheduled for Honeywell and for the 9-hole golf course located by the Hilton hotel. In the month of May, there were two leaks that required the help of a contractor, a 1-inch service line that crossed First Avenue and 12-inch pipeline at Naranja west of La Canada. Water Quality - Mr. Ruiz reported the following: -Consumer Confidence Report were updated and reviewed by ADEQ. Reports were mailed and delivered to all water customers in March. The Water Quality section in the Annual Report was updated and published in April. Water Quality Budget 2010/2011 = $80,000-$100,000 dollars. Routine monthly sampling for Total Coliform bacteria and Maximum Residual Disinfection Levels (MRDLS) is ongoing. Baseline monthly sampling and collection of all data is ongoing, Monitoring of Total and free Chlorine in the system, PH, TDS, Temperature and conductivity of water is ongoing. All monitoring is conducted at end points and reservoirs. Total Trihalomethanes (TTHMs) and Haloacetic acids (HAA5s) quarterly sampling is ongoing. Entry Points to the Distribution System (EPDSs) sampling for the following contaminants: -Inorganic chemicals (IOC) -Volatile Organic Chemicals (VOC), Synthetic Organic Chemicals (SOC), Secondary Drinking Water Contaminants, Radio chemicals. -Lead and Copper sampling at private residences is ongoing. This is required once every three years. Random sampling of 50 households. -Staff is working with ADEQ to correct Dioxin data from 2007. Pace Analytical, located in Minnesota had entered analytical results on a discontinued ADEQ form. The Utility had no detects for Dioxins. There were no questions, Mr. Ruiz concluded his report. 5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember) The Water Utility Commission does not have a Town Council liaison at this time. Mr. Saletta reported that a liaison will be selected July 7th Town Council meeting. 7 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 6. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Shapiro reported that a meeting was being scheduled for June. b. Conservation Subcommittee (Vice Chair Davis) Commissioner Milkey reported no meeting was held. c. Renewable Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Reynolds reported no meeting was held. 7. STAFF REPORTS a. Customer Service Report (P. Saletta) Click here for Item A Meter Installation as of May 31, 2010 Projected Meter Installations for FY 09-10: 60 Actual Meter Installations for FY 09-10: 63 Projected EDUs for FY 09-10: 90 Actual EDUs for FY 09-10: 80 Mr. Saletta reported on the radio feed pilot study. The data determines water flow in the meter. As new meters are installed the Utility will be able to make them compatible with the new system. Mr. Saletta ended his report. b. Capital Project (B. Jacklitch) Mr. Ruiz reported the following: -Replacement Well E-1 B: The project will be advertised for equipping of the well this month. -Lambert Lane Improvements: Lambert Lane will be widen to 4 lanes, Location: Lambert to Pusch View Bridge. Waterlines will be modified along with the road improvements. The design plans are about 60% complete. The bid process will be bundled together with Public Works Road Improvement Project. Inside Town - CAP Water Distribution Study: CH2MHill is conducting the study. Phase I of the study covers Tucson Water's Wheeling of CAP Water to the Town's limit. This portion of the study is complete and will be presented to Staff. Phase II of the Study's objective: develop an approach to introduce CAP water from the CAP canal to the Town's water service area, develop a plan focusing on water supply, water quality and infrastructure cost considerations. 8 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION Outside Town CAP Delivery Cost Study: Contracted consultant Carollo Engineers. The study focuses on a recharge and recovery facility located at the Avra Valley Recharge facility in Marana. Provide cost estimates to include recovery costs, pipeline costs and treatment to bring CAP water to the Town. Mr. Ruiz ended his report. 8. DIRECTOR'S REPORT (P. Saletta) a. New Council Packet Information: Newly revised listing of Mayor & Council Mr. Saletta mentioned that the new council was elected on June 2nd and Councilmember Salomon was sworn in on June 9th. He reported that the new council also attended a field tour of Big Wash and the Reclaimed site. They will also attend a retreat this weekend with the Town Manager and Directors. b. Citizens Academy Handout: Citizens Academy objective: A new training course for Boards and Commissions. There are 6 classes beginning this Fall for those who have not yet taken the Citizen Planning Institute courses. They will also provide specific training for the Water Utility Commission. c. WUC Reappointments Mr. Saletta was pleased to announce the reappointments of Commissioners Rick Davis and Winston Tustison to the Water Utility Commission at the June 2nd Council meeting. d. Water CASA The Water Conservation Alliance of Southern Arizona will no longer be part of the University of Arizona because of budget cuts. The members of Water CASA are looking into forming an independent non-profit organization to continue the work of Water CASA. e. Upcoming Meetings 6/16: Council meeting 7/07: Council meeting 7/12: WUC meeting 7/21: Council meeting There are no August Council meetings scheduled. Mr. Saletta ended his report. 9. FUTURE AGENDA ITEMS -Training Opportunity: Commissioners to visit Ventana Medical's deionization system facilities. (Commissioner Reynolds). The Commissioner's agreed it was a 9 6/14/10 MINUTES, ORO VALLEY WATER UTILITY COMMISSION good idea to visit the facilities. -Update: Tucson's Water CAP Wheeling. (Commissioner Shapiro) 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. ADJOURNMENT: 7:28 pm MOTION: A Motion was made by Commissioner Reynolds and Seconded by Commissioner Shapiro to approve to adjourn. MOTION carried, 4-0. Prepared by, 1.10-0 D1( ayt2A- Iris L. Chaparro Senior Office Specialist 10