HomeMy WebLinkAboutMinutes - Water Utility Commission - 10/11/2010 Ste'`J.J
MIN ITEM
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MINUTES it -13- 010
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
MONDAY, OCTOBER 11, 2010
HOPI CONFERENCE ROOM
11000 N. LA CANADA DRIVE
CALL TO ORDER -AT OR AFTER 6:00 P.M.
ROLL CALL
PRESENT: David Powell, Chair
Richard Davis, Vice Chair
John Hoffmann, Commissioner
Elizabeth Shapiro, Commissioner
Robert Milkey, Commissioner
Winston Tustison, Commissioner
STAFF PRESENT:
Shirley Seng, Utility Administrator
David Ruiz, Engineering Division Manager
Robert Jacklitch, Project Manager
Jim Peterson, Water Utility Regional Coordinator
OTHERS PRESENT: Councilmember Hornat
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 speakers.
Chair Powell reported that Mr. Saletta was not present but was available via
conference call.
1. APPROVAL SEPTEMBER 13, 2010 MINUTES Discussion and/or possible
action.
Click here for Item #1
There were no corrections to the September 13, 2010 minutes.
10/11/2010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
MOTION: A Motion was made by Commissioner Shapiro and Seconded
by Vice Chair Davis to approve the September 13, 2010 minutes.
MOTION carried, 6-0.
2. UPDATE ON PROPOSED WATER RATES INCREASES (P. Saletta and
S. Seng) Discussion and/or possible action regarding the Water Rates
Analysis and the proposed increase in water rates. Discussion may include
discussions and update from the recent Study Session and Council
Meeting and the proposed schedule.
Ms. Seng reported the following:
-10/06: Town Council approved the resolution providing a Notice of Intent to
increase the water rates.
-11/17: Set Public Hearing
Ms. Seng thanked Commissioner Shapiro and Commissioner Tustison for
attending the meeting.
A legal publication of the resolution providing a Notice of Intent will be
published week of 10/18/10.
Ms. Seng handed out notices of the Public Hearing to the Commissioners and
indicated that they will be mailed to all the customers. She mentioned that it was
not a statutory requirement but only gives the customers the opportunity to attend
the public hearing. The notice also has examples of how the proposed increase
in the Groundwater Preservation Fee impacts their water bill.
Customer comments regarding water rate increases:
-SAHBA- Southern Arizona Home Builders Association had several questions
regarding increases in the meter installation fees. Mr. Saletta will be working with
SAHBA to address their concerns.
-All these comments will be tracked. Council and the Water Utility Commission
will receive copies along with Staff responses. A Study Session was held with
Council on September 22, 2010. They had several questions which Staff will be
addressing prior to the Public Hearing on November 17th.
-Council issues: Specify timeline for delivery and wheeling of CAP water through
Tucson Water system.
-Explain CAP water reliability alternatives, finance of CAP infrastructure, explain
why the Groundwater Preservation Fee increases need to stay at the same pace
as CAP water deliveries (5 years or 10 years).
-Continue to build cash in the Alternative Water Preservation Fee Fund.
Ms. Seng ended her report.
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10/11/2010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Commissioner Shapiro asked if CAP water infrastructure expenses for Tucson's
wheeling would be coming from the Alternative Water Impact Fund. Ms. Seng
indicated that some monies were included in the Water Rates Analysis report for
those expenses however the O&M expenses would be coming out from the
Enterprise Fund.
There were no further questions. No Action was required on this item.
3. UPDATE ON NORTHWEST WATER PROVIDERS CENTRAL ARIZONA
PROJECT WATER TREATMENT AND DELIVERY SYSTEM (P. Saletta)
Discussion and/or possible action regarding the activities of the Northwest
Water Providers regarding development of Central Arizona Project water.
Discussion may include studies conducted or in progress, recharge and
recovery, reliability and an update from the recent CAP Meeting.
Click here for Item #3
Mr. Saletta provided an update via phone and also mentioned that Mr. Ruiz will
be giving an update on the study.
Packet Information: Includes a copy of Tucson's Water Reliability Talking Points.
A brief update will be given regarding Central Arizona Conservation Water
District meeting which was held 10/7/2010. He explained that reliability was a key
component for the development of Central Arizona Project water.
Mr. Saletta explained the following:
For approximately thirty days of the year the CAP canal is shut down for the
maintenance of the pumping stations. Over the years there have been numerous
concerns about how reliability would be met. Several options regarding the size
of the Northwest reliability reservoir have been discussed. Since that time,
Tucson Water has continued with recharge and recovery in central and southern
Avra Valley recharge projects. In addition, Metro Water District has taken steps
to do recharge and recovery and has purchased the Avra Valley recharge facility
for future delivery of CAP water.
Ni
alle as been stoig water at thee LowerSanta Cruz rec a^ge project
^ojec !o^
the past 2-3 years and building storage credits. We are also looking at options
using recharge and recovery at the Lower Santa Cruz project.
Oro Valley has been in discussions with the other NW Water Providers and
CPV ntrat Water Conservation (NAP nrld arrived nt sry,vPYr al
alternatives for reliability and if recharge and recovery is possible for the other
water providers.
The Lower Santa Cruz Project is in an ideal location. Its recharge capacity could
total up to 2 feet per day_ At this time the Lower Santa Cruz has up to 50;000 AF
permitted but only takes 40,000 AF per year because of the conveyance at the
1011112010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
recharge pond. The NW Water provider's total CAP allocations and taking into
consideration the 30 day outage is about 2,278 AF per year. Oro Valley needs
850 AF of reliability per year from this balance. Additionally Oro Valley's has
10,305 AF of CAP allocations.
Reliability accounts will be created for each of the NW Providers to store
reliability water in these facilities and maintain adequate balances for the first
year. Mr. Saletta explained that storage credits can be used from these accounts
for recovery wells
CAP staff will review the use of existing recharge capacity in the Tucson Water
Active Management Area. The NW Water Providers also requested that CAP
staff pay into a State Demonstration Fund for additional recharge capacity and
future infrastructure
nr structuya improements anthey
hey agreed. T h e State Demonstration
Fund was created to look at recharge and replenishment projects throughout
central and southern Arizona.
Mr. Saletta explained that Oro Valley had not decided whether to move forward
with recharge or recovery or come off directly from the cana! with treatrovnt. We
have requested CAP to provide for some flexibility. It was agreed that in the
event the NW Water Providers build a plant within the next 20 years, we will work
with CAP staff to determine the most cost effective way to meet these reliability
requirements.
Reliability would include the use of existing storage in the canal for delivery of
CAP water to any future treatment plant or bypass pumping stations. Oro Valley
believes this is a reasonable commitment on behalf of CAP to resolve this issue.
The Bureau of Reclamation (BOR) was originally thinking about building the
Northwest reliability reservoir however CAP will take the responsibility of
reliability in the event the Lower Santa Cruz Recharge project is used. At this
time reliability will come from the operations of the CAP canal and recharge
facilities. The concept is to deliver all CAP water and reliability water within an 11
month period even if the canal is down during the 30 day planned outages.
Tucson Water will coordinate recharge activities at Pima Mine Road Recharge
Project (PMRRP), Central Avra Valley Southern Arizona Recharge (CAVSARP)
and Southern Avra Valley Arizona Recharge Project (SAVSARP).
Tucson's reliability amount is approximately over 12,000 AF but at least 6,000 AF
of CAP would be available in the Pima Mine Road facility of which CAP and
Tucson has 50 percent interest in. They will be able to use and manage all three
recharge projects.
Mr. Saletta felt there was enough flexibility to go with a surface water treatment
plant off the CAP canal. Oro Valley has assurance from Central Arizona Project
staff that recharge and recovery could be handled in terms of reliability.
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10/11/2010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Mr. Saletta indicated that the CAP Board was briefed at the October 7th meeting.
The plan is to bring forward a resolution that has the Board's approval to move
forward with these various concepts and reliability issues in southern Arizona.
Mr. Saletta ended his report. There were no questions.
Mr. Ruiz gave updates on the studies for the delivery of CAP water to the Town.
-CH2Hill is completing the water quality and delivery study for Phase I wheeling
of CAP water to the southern side of Town and approximately using 3,000 AF per
year through this system. Results have been positive.
-Phase II of the Study: Phase II takes a look at higher capacity bringing in water
through the same point but not necessarily from Tucson Water but through other
alternatives such as Pima Mine Road, etc. This study also includes issues such
as •. ���� quality,1�#�� ,�! #ri�r���nr� rr�rl�r'i#.s of 3,000, 5,000, 'f'a fl and �� ��� per
�. t.er q alit. , disci ibu i n capacii.j of t 2,000 i 5,0V0 AF per
year. -Explores infrastructure needs for future delivery of 15,000 AF per year of
CAP water including Arroyo Grande annexation.
Some of the initial results include how water could be delivered most efficiently;
blending techniques avoid any problems such as Tucson Water had with direct
delivery. Mr. Ruiz explained some of Tucson Water's problem in the late 1980's
such as water flow reversals which eventually lead to pipeline erosion and
chemical imbalances. Staff will bring their recommendation to the Commission
once the study is complete.
Carollo Study:
Mr. Jacklitch reported that he received the first draft of the Carollo Study. Staff is
currently reviewing the report and making comments. The Carollo Study looks at
recharge and recovery at the Lower Santa Cruz recharge facility, the cost of
wells, pumping and delivery to the Town boundary.
Mr. Jacklitch gave background information on CH2MHiIl Study, such as the
distribution system, infrastructure needs, water pressure and chlorination.
He also pointed out several aspects regarding the wheeling of Tucson's CAP
water to the Town. The Carollo Study should be completed in December. Mr.
Jacklitch ended his report.
-Question and discussions:
Commissioner Shapiro asked about Tucson Water's CAP wheeling costs. Mr.
Saletta reported on the Cost of Service Study. Initially the costs were extremely
high and were within the $600 per AF range. He explained that certain elements
such as depreciation could be reduced based upon the fact that this is an interim
agreement and only for a 5-year term. If Tucson's Water is too expensive staff
will need to re-evaluate this situation and make a determination. Staff plans to
meet with Tucson Water and the consultants.
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10/11/2010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Mr. Saletta explained that Oro Valley could work out an agreement with Tucson
Water for delivery if it is done in mid-year by trading some storage credits with
them.
There were no further questions, Mr. Saletta ended his report. No Action was
required on this Item.
4. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Council Liaison)
Councilmember Hornat reported on:
-CAP Board meeting: He attended the meeting and explained that the Board
president was very pleased with the NW Water Providers collaborative efforts.
Town Council issues:
-Oro Valley Water fee increases and which funds were being affected
-Golf courses: Councilmember Hornat pointed out that and he was aware that
there was a debt to pay off for the reclaimed water system and that the golf
courses must help subsidize these costs but also asked whether it was
reasonable that CAP infrastructure and costs be borne by other than the golf
courses. Councilmember Hornat iai ended his report.
t.
5. SUBCOMMITTEE/COMMISSIONER REPORTS
a. Finance Subcommittee (Commissioner Tustison)
Commissioner Shapiro mentioned she had no report. Commissioner Tustison
also reported that several of the Subcommittee members will attend the Town
Council meeting for approval of the Water Rates.
b. Conservation Subcommittee (Commissioner Davis)
Vice Chair Davis had no report.
c. Renewable Water Resources Subcommittee (Commissioner Hoffmann)
Commissioner Hoffmann had no report.
6. STAFF REPORTS
a. Customer Service Report (S. Seng)
Click here for Customer Service Report - September 2010
Ms. Seng reported the following:
Meter Installation as of September 30, 2010
-Total Metered Connections - 18,462
-Actual New Meter installations as of September 30: 21
-Projected EDUs for FY 10-11: 94
-Actual EDUs as of September 30: 45
-New metered installation summary: Residential: 13
Commercial: 5 irrigation: 3 Turf: 0
Ms. Seng ended her report.
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10/1112010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
b. Capital Project (B. Jack!itch)
Mr. J ackl itch reported the following:
Well replacement E-1 B: Location - Tangelo & First Ave. Contractors are on site
and proceeding with excavation.
Lambert Lane Improvements: The design phase for the water main replacement
was completed. The plans are under review by Staff and will be out to bid.
Campo Bello Water Main Replacement: This project is underway and a notice to
proceed was issued.
Sheraton
eraton oosterStation: The design
esirn phse of this
h:s pyoject was
as compleled. This
project will be advertised by the end of December and is being funded by W1 FA
(Water Infrastructure Financing Authority).
N. La Canada 3.0MG Concrete buried Reservoir: Location: N. La Canada & King
Air Drive. The contractors have evlarovd the sitv,. and anrsro currently at 20%
excavation. Mr. J acki itch ended his report.
c. Potable and Reclaimed Water System Report (D. Ruiz)
Click here for Potable Water Operations Report - September 2010
Click here for Reclaimed Water System Report
Mr. Ruiz reported the following:
Potable Water System - September 2010
-O.V. Total Daily Demand: 6.0 - 8.0 million gallons per day
-Countryside System Demand: Under 1.0 million gallons per day
-Precipitation: 3 rain events
Reservoir Capacity: 6.5 - 7.0 million gallons per day
Reclaim Water System - September 2010
-Total for 6 end users = 75.0 million gallons per day
-Year to Date Total: 493.0 million gallons
Mr. Ruiz ended his report.
7. DIRECTOR'S REPORT (P. Saletta)
a. Commission Terms-January Appointments
Click here for R 10-62 Amending Terms of Boards & Commissions
Mr. Saletta reported the following:
Packet Information: Resolution (R) 10-62 Terms of Office for Board and
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10/11120/0 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Commission Members. This resolution changes the terms from Fiscal year to a
calendar year basis.
The Town Clerk office has issued a notice to ail the boards and commissions
regarding the possible 6 month term extension from July to January. The Town
Clerk's office will contact all the Boards and Commissions.
b. Lower Santa Cruz Recharge Project Field Tour
Mr. Saietta contacted Brian Henning Central Arizona Project to arrange a
possible field trip early November or December. Mr. Saletta requested the
Commission contact him regarding their schedules. The trip will take
approximately 3 hours. Staff will also e-mail the Commission with details.
c. Upcoming Meetings
Click here for Water Summit October 29 2010
-10/20: Town Council meeting
-10/29: O.V. Water Summit (copy attached). Please RSVP to Arinda Asper. The
Commission will receive training cr.di#s
.
Mr. Saletta ended his report.
8. FUTURE AGENDA ITEMS
Commissioner Tustison requested a comprehensive review of Tucson's Water
CAP wheeling and possible alternatives. Mr. Saletta indicated that he would
schedule this for a future meeting in December or January.
Councilmember Hornat suggested holding a Joint Study Session with Council
and the Commission. Mr. Saietta indicated that this would also be scheduled.
There were no other future agenda items.
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 g "Cal to Audience" pease specify what
you wish to discuss when completing the blue speaker card.
Mr. Art Weise Oro Valley resident supported the water rate increases concept not
only from the point of regulatory expenses but because it also promoted
conservation by ;±-,�+��rY+r�a��+r�� higher r!�f�� for �±r#��r+�►r�f�r ����� �� ��+�r!
implementing hig.he i vales o hi-.i hey itlate a,.se i e also
suggested building a tiered rate for conservation.
Q
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10/11/2010 MINUTES, ORO VALLEY WATER UTILITY COMMISSION
Ms. Eliza Benites an exchange student indicated she was doing some research
regarding water issues in southern Arizona and requested an interview with Staff.
Chair Powell requested that Staff accommodate Ms. Benites. There were no
other speakers.
NEXT MEETING: Next WUC meeting scheduled November 8, 2010
ADJOURNMENT
MOTION: A Motion was made by Commissioner Hoffmann and
Seconded by Commissioner Tustison to adjourn the meeting made by
Commissioner Hoffmann and Seconded by Commissioner
Tustison.
t.
MOTION carried, 6-0.
Prepared by,
L; 646AD
Iris L. Chaparro
Senior Office Specialist
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