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HomeMy WebLinkAboutMinutes - Stormwater Utility Commission - 6/14/2011 I DDD TED MINUTES CrO ) 1 # ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Tuesday, June 14, 2011 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER - AT OR AFTER 6:00 P.M. Chair Powell mentioned that Commissioner Tustison was out of town but Commissioners Hoffmann and Commissioner Davis would be available for the meeting via phone call. ROLL CALL PRESENT: Dave Powell, Chair Richard Davis, Vice Chair John Hoffmann, Commissioner Robert Milkey, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner EXCUSED: Winston Tustison, Commissioner STAFF PRESENT: Philip C. Saletta, Director Shirley Seng, Utility Administrator David Ruiz, Engineering Division Manager Robert Jacklitch, Project Manager OTHERS: Councilmember Hornat Sandy Elder, Assistant Deputy Director Tucson Water 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. There were no speakers at this time. 1. APPROVAL MAY 9, 2011 MINUTES Discussion and/or possible action. Click here for Item #1 MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Reynolds to approve the May 9, 2011 minutes. MOTION carried, 6-0. . 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 2. INTERGOVERNMENTAL AGREEMENT ON INTERIM DELIVERY OF CENTRAL ARIZONA PROJECT WATER (P. Saletta) Discussion and/or possible action regarding the draft Intergovernmental Agreement between the Town of Oro Valley and the City of Tucson for the interim delivery of Oro Valley's Central Arizona Project Water through the Tucson Water system. A presentation will be made describing the project and the major elements of the Intergovernmental Agreement. Click here for Item 2a Power Point Presentation Click here for Item #2b IGA Mr. Saletta introduced Sandy Elder, Assistant Deputy Director from Tucson Water. Mr. Elder and his staff were very instrumental with helping to draft the Intergovernmental Agreement for the Interim Delivery of the CAP Water. Mr. Saletta gave a power point presentation regarding the Interim Delivery of CAP Water through the Tucson Water System. A map of the project was discussed. Mr. Saletta stated that this project is a regional cooperation amongst various water providers in our region, Tucson Water, Oro Valley Water Utility and Metropolitan Water Improvement District. Mr. Saletta outlined the Central Arizona Project Canal and essential areas and points of delivery. CAP Water will be delivered to Oro Valley near Naranja and Shannon. Mr. Saletta explained that Oro Valley's Central Arizona Project surface water will be delivered from the canal and then recharged at Tucson Water's Central Avra Valley or Southern Avra Valley Recharge Projects. The recharged water will then be pumped from wells and then delivered as groundwater to the Tucson Water's Clearwell reservoir. From there it will be delivered to Tucson Water's Oasis reservoir then to their Naranja Reservoir. From Naranja Reservoir it will be pumped into the Oro Valley Water System. This same water is currently delivered to Ironwood Ridge High School, Wilson Elementary and various other Tucson Water customers on the west side of Oro Valley. The need for Renewable Water is due to_declining water levels and the need to protect and preserve our aquifer. We over pumped our aquifer by 2,100 AF this past year. In addition, we need to reduce our reliance on the Central Arizona Groundwater Replenishment District and deliver "wet" water to our community. -Water Utility Staff is moving forward on parallel tracks o The Intergovernmental Agreement o Public Information Plan o Design o Permitting & Regulatory requirements Ms. Seng reported on the Public Information Plan and indicated that it was very important to keep customers and Town staff updated as the project moved forward. The Public Information Plan will include: billing inserts, press releases, open house, Water Utility website, Oro Valley Vista and Talk of the Town. To date there has been one billing Insert which described the project. There have been several meetings including the WUC Renewable Water Resources Subcommittee, WUC Finance 2 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION Finance Subcommittee, the February WUC Meeting, and the March Oro Valley Town Council meeting. There have been only a few comments and Staff has responded to those customers. Ms. Seng ended her report. Mr. Ruiz reported on several of the ongoing studies. These include: o Cost Study with Tucson and Metro Water o Water Quality and Distribution Study o Cost Analysis Study The water quality will meet all standards. There will be higher total dissolved solids in some areas in the water system, the water is compatible with existing water quality. Some areas may have flow reversal and this can be mitigated by flushing pipelines in these areas. Mr. Ruiz explained that Oro Valley's water quality does not create any scale or fine sediments. Ms. Seng explained that the costs comparison was analyzed for 1,000 af/yr, 1,500 af/yr and 3,000 af/yr. Based on the analysis the 1,500 af/yr was the most optimal and showed no significant projected rate increases. Mr. Saletta stated that after reviewing the cost alternatives the 1,500 AF was the most feasible to do in terms of both cost and required capital improvements. Mr. Ruiz stated that design is underway. Tucson Water will design the pumping equipment inside TW's Naranja Reservoir Site. This design work started June 6, 2011. Oro Valley Water Utility will design the conveyance pipeline from TW's Naranja reservoir site to OVWU's water system. This is approximately 1,000 feet of pipeline and design started May 3, 2011. Mr. Jacklitch also reported on the design phase of the project. Staff has completed its preliminary design. Mr. Abraham Tucson Water staff member has also completed his review. Oro Valley will connect its pipeline at a 10 foot point outside their facility wall. The water will be delivered to OVWU's existing pipeline on Naranja and through Oro Valley's water system. Staff will complete their design in several weeks. By the month of July staff will be reviewing its final design and forwarding it to Tucson Water for final approval. Mr. Jacklitch ended his report. Mr. Ruiz reported on the Project Management Schedule and that the target date for delivery is January 3, 2012. Mr. Ruiz ended his report. Mr. Saletta covered the Major Elements of the Intergovernmental Agreement: o The 1,500 af/yr could increase to as much 1,680 AF per year if operated 365 days per year. The agreement has been written for 2,000 Acre Feet per year. o This agreement could also increase by amendment up to 4,000 AF/Yr subject to approvals from TOV Council and Tucson Water Council 3 r 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION o Deliveries to Oro Valley WSA and allows deliveries to Countryside WSA o Term of this agreement is for 5 years with 5 years renewable o Cost is $499.89 per acre-foot with a monthly service charge of$323.32 o Design and construction will be paid for by OVWU o OVWU will control and operate daily deliveries o Tucson Water will provide pressure to Oro Valley WSA E-Zone and pay power o OVWU will store its CAP water in TW recharge facilities —Central Avra Valley and/or Southern Avra Valley Storage and Recovery Projects o OVWU will pay for any losses to the aquifer, evaporation, and 4% system loss o Long-term storage credits can be used to make up any shortfalls o Any unused balance can be used by OVWU o OVWU will have priority to store in TW facilities over any subsequent agreements It is important to recognize that in the agreement Tucson Water will be getting a shared cost for their operations and maintenance, Oro Valley will have the advantage of getting "wet" water to help preserve and protect its aquifer. Mr. Saletta discussed the following Process and Schedule: -2/14/11 OV Water Utility Commission-Review of Options -3/16/11 TOV Council direction to negotiate IGA -5/09/11 OV Water Utility Commission - Project Update -5/13/11 OV WUC Finance Subcommittee -6/14/11 OV Water Utility Commission review of IGA -6/28/11 Tucson Council consideration of IGA -7/06/11 TOV Council consideration of IGA -8/15/11 Bid construction work -10/1/11 Commence construction -Jan,2012 Short-term/interim CAP delivery in operation Recommendation: OVWU staff recommends that the Water Utility Commission recommend the approval of this IGA to Oro Valley Town Council Question and answer session occurred. -Commissioner Shapiro asked about the cost of maintaining Tucson Water's and Oro Valley's systems. Mr. Saletta explained that Tucson Water would be responsible maintaining both systems daily and that it is already included in the costs. Oro Valley would control the system operationally such as the pipeline, valves and S CA DA system. Commissioner Milkey asked about the CAP deliveries to Countryside and about the facilities and are there any significant costs. Mr. Saletta pointed out the Oasis A-zone reservoir and that the Countryside water system is just west of that area. He explained that it was a simple connection from Tucson Water's delivery system and that Countryside would receive about 100 to 200 of/yr once the connection was established. We want to provide this clause in the 4 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION agreement since it isn't a significant amount of water. Mr. Saletta explained that Countryside did not experience much water level declines. Mr. Ruiz also mentioned that the Town currently has an emergency connection with Tucson Water in the Countryside area for the past 20 years. Mr. Saletta also mentioned that Oro Valley may use the emergency connection but may have to make some additional improvements. -Commissioner Milkey had several inquiries regarding the Intergovernmental Agreement with Tucson Water. Section 7.6: How will the regular minimum flow be defined and are there any in the future plans? Mr. Saletta mentioned there were no definitions or criteria set regarding the gallons per minute delivered through Tucson's Water system. Mr. Ruiz also explained there would be a water sampling station for water quality in the area and a fire hydrant near the intersection of Naranja and Vista del Sol to flush the pipeline when needed. Sections: 8.1.1 & 8.1.2: Regarding storage and recovery well permits. Commissioner Milkey asked is there any risks obtaining these permits? Mr. Saletta indicated that Oro Valley already had their own recovery well permits however, Oro Valley does not have any recovery wells or Storage permits to store at Tucson Water's facilities. There is minimal risk involved and Staff has already contacted Arizona Department of Water Resources and all permit requirements should be in place to meet the schedule. -Commissioner Hoffmann mentioned that Staff did a great job covering all the issues and questions. He asked if the $499 Acre Feet cost will be held constant for the 5 year term. Mr. Saletta confirmed that the cost will be held constant for the 5 year term. If there is a renewal agreement after the 5 year term the costs will be reviewed again. Are there any clauses allowing an adjustment for some extreme or unforeseen situations? Mr. Saletta explained that there were no clauses in the agreement but if power costs increase we may have to address that issue. -Commissioner Hoffmann asked how the 4% system lost was derived. Mr. Saletta explained that most of the unaccounted water stemmed from inaccurate meter reading between production and actual delivery. The losses in the IGA are for actual leakage that occurs from reservoirs, pipeline and valves in the system. -Commissioner's Davis and Reynolds had no questions. There were no further questions. Chair Powell requested a motion to approve the IGA. MOTION: A Motion was made by Commissioner Reynolds and Seconded by Commissioner Shapiro to recommend that the Oro Valley Town Council approve the Intergovernmental Agreement between the City of Tucson and the Town of Oro Valley relating to the Short-Term Interim Delivery of Central Arizona Project Water. MOTION carried, 6-0. 5 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 3. WATER UTILITY COMMISSION MEETING SCHEDULE (P. Saletta) Discussion and/or possible action regarding the Water Utility Commission Meetings schedule for July, August and/or September. Mr. Saletta opened the Commission's summer schedule for discussion. He mentioned the agenda items scheduled for July's WUC meeting. -Update on Countryside automated meter infrastructure project -Update on the IGA Interim Delivery of Central Arizona Project Water Chair Powell requested feedback from the Commission regarding July's 11th meeting and their availability. Commissioner Hoffmann mentioned that he would be in Flagstaff but can be available via phone call if a quorum was required. The rest of the Commissioners confirmed they would be available. The Water Utility Commission meeting will take place July 11th. Chair Powell inquired about the August meeting. Mr. Saletta indicated there was not much scheduled for August and that Town Council would not be holding their meetings in August. There was consensus to not have an August meeting and to hold a meeting in September. 4. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Gillaspie) Councilmember Hornat requested a chart outlining the costs for the Interim Delivery of CAP's Project water. He felt that Council would probably request a break down of these costs. Mr. Saletta will provide copies of the Options and Preliminary Cost Estimates chart to Council at their meeting. Councilmember Hornat had no other comments. 5. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Shapiro had no report. b. Conservation Subcommittee (Commissioner Davis) Commissioner Davis reported that the subcommittee will meet in a week with Planning Department to finalize the hiring of a consultant for the new landscape ordinance. Chair Powell asked if the subcommittee received any responses from Oro Valley's Market place regarding water conservation. Commissioner Davis indicated that they had contacted the market place but received no response. The subcommittee has not had the opportunity to review their water usage. c. Renewable Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Hoffmann had no report. 6 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION 6. STAFF REPORTS a. Customer Service Report (S. Seng) Click here for Item (a) Ms. Seng reported the following: Total Metered Connections as of 5/31/11: 18,493 Projected Meter Installations for FY 10-11: 75 Actual New Meter Installations as of 5/31/11: 55 Current Month 3 Actual EDU's as of 5/31/11: 86 Current Month 5 Meter Replacements FY 08-09 404 FY 09-10 579 FY 10-11 503 as of 5/31/11 Current Month 34 Total 1,486 Ms. Seng ended her report. b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported the following: Design Projects -Lambert Lane 16-inch Water Main: This project will begin in conjunction with Public Works road improvement widening project. Bid Opening Schedule: End of June. The Water Utility's improvement design is complete. -Sheraton El Conquistador Booster Station: Bid Opening: May 27, 2011. The contracts have been forwarded to the low bid contractor. Staff is waiting for the bonds and signature of insurance. Pre-construction meeting schedule: First week in July. The existing facility will be demolished and rebuilt. A temporary booster pump station will be installed. -North La Canada 3.0 MG Concrete Buried Reservoir: The initial fill of the 3.0 MG reservoir has been completed and a leak test will be performed this week. The reservoir passed all of its tests. The contractor is presently backfilling areas around the reservoir. The reservoir will probably go on line by mid August. Once the reservoir is refilled and all chlorination bacteria, testing and regulatory issues and approvals are taken care of the reservoir will be put on line. Several other issues such as grating, landscaping and building of the wall will need to be completed. -CAP Interim Delivery Pipeline Interconnect with Tucson Water: The design phase for this project is about 30% complete. Mr. Jacklitch ended his report. c. Potable and Reclaimed Water System Report (D. Ruiz) Click here for Item (b) 7 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION Mr. Ruiz reported the following: 2011 Well Pumpage Monthly Report Monthly Accrued Pumpage: Under 3,000 AFY Sustainable Rate: 5,500 AFY 2011 Annual Well Pumpage Report -Sustainable rate = 5,500 AFY -2011 Annual Pumpage = Under 4,000 AFY Potable Water Overall Reservoir Storage (MG) - May 2011 -Overall Reservoir Storage Average: Under 7.0 million gallons -Overall Daily Demand: 6.0 million gallons -Month end demand: 7.5 million gallons Potable Water System Demand and Precipitation - May 2011 Precipitation: No rain events Reclaimed Water System - May 2011 Daily Demand Total: 89.6 million gallons. Year Total January - May: 275.2 million gallons. Mr. Ruiz ended his report. 7. DIRECTOR'S REPORT (P. Saletta) a. Colorado River Basin Stream Flow Mr. Saletta reported on the Colorado River and the Arizona Stream flow maps and the percentile classes. Mr. Saletta reported there could be a release from Lake Powell to Lake Mead as much as 14 million AF of water. Typically a good release is 8.0 to 9.0 million AF. That may result in a 40 foot water elevation increase to an elevation 1,126 AF in Lake Mead. The first shortage in Lake Mead was about 1,075 AF elevation. Mr. Saletta also pointed out that the Water Utility will no longer be having its water bottled. Culligan Bottling Company will be discontinuing their small bottling operations. Staff looked into other alternatives but they were too costly. A final order of 150 cases will be placed. b. Upcoming Meetings -6/28: Tucson Council Meeting -7/06: Town of Oro Valley Town Council Meeting There will be no Town Council meeting late July and August. Mr. Saletta ended his report. 8. FUTURE AGENDA ITEMS Update: Town of Oro Valley Budget Ref: Countryside Meter Reading Project (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 8 6/14/2011 MINUTES, ORO VALLEY WATER UTILITY COMMISSION speak during "Call to Audience" please specify what you wish to discuss when completing the blue speaker card. There were speakers. 9. NEXT MEETING: JULY 11, 2011 LOCATION: HOPI CONFERENCE ROOM ADJOURNMENT : 7:01 P.M. MOTION: A Motion was made by Commissioner Shapiro and Seconded by Commissioner Milkey to adjourn the meeting. MOTION carried, 6-0. Prepared by, Iris L. Chaparro Senior Office Specialist 9