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HomeMy WebLinkAboutMinutes - Water Utility Commission - 6/11/2012 MINUTES ORO VALLEY WATER UTILITY COMMISSION REGULAR SESSION Monday, June 11, 2012 HOPI CONFERENCE ROOM 11000 N. LA CANADA DRIVE CALL TO ORDER -AT OR AFTER 6:30 P.M. ROLL CALL PRESENT: Robert Milkey, Chair Winston Tustison, Vice Chair John Hoffmann, Commissioner Richard Reynolds, Commissioner Elizabeth Shapiro, Commissioner Richard Verlaque, Commissioner EXCUSED: Richard Davis, Commissioner STAFF PRESENT: Philip C. Saletta, Water Utility Director Shirley Seng, Utility Administrator Robert Jacklitch, Project Manager David Ruiz, Engineering Division 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. There were no speakers. 1. APPROVAL MAY 14, 2012 MINUTES MOTION: A motion was made by Commissioner Reynolds and seconded by Commissioner Shapiro to Approve the May 14, 2012 minutes as written. MOTION carried, 6-0. 6/11/2012 Water Utility Commission Minutes 1 Chair Milkey moved items #3 and #4 up to accommodate Commissioner Reynold's schedule. 4. DISCUSSION AND POSSIBLE ACTION REGARDING THE CANCELLATION OF THE JULY AND AUGUST WATER UTILITY COMMISSION MEETINGS (Chair Milkey) The Commission unanimously agreed to cancel July and August Water Utility Commission meetings. Mr. Saletta mentioned that Council will also be in recess from June 20th to September 2012. He mentioned that the Finance Subcommittee, Water Resources and Conservation subcommittees could still hold their meetings during this period if necessary. Staff will also be working on the Water Rates Analysis Study. Commissioner Hoffmann mentioned that the Water Resources subcommittee will have a meeting to discuss several templates staff is currently working on. Commissioner Tustison mentioned that the Finance subcommittee will hold at least two meetings to discuss details of the Water Utility's FY 12/13 Budget and the Water Rates Analysis. Ms. Seng also mentioned that a Conservation subcommittee will also have a meeting. MOTION: A Motion was made by Vice Chair Tustison to cancel the July and August Water Utility Commission meetings. Commissioner Shapiro Seconded the motion. MOTION carried, 6-0. 3. DISCUSSION AND UPDATE REGARDING ORO VALLEY'S REPLENISHMENT REQUIREMENTS THROUGH THE CENTRAL ARIZONA GROUNDWATER REPELENISHMENT DISTRICT (P. Saletta & S. Seng) Mr. Saletta gave some background information regarding CAGRD's requirements and the Town's obligation as a participant in the Member Service Area Agreement. The Member Service Area Agreement obligates CAGRD to replenish water on Oro Valley's behalf when there is excess underground water pumping. —Mr. Saletta explained that excess groundwater is the total amount of groundwater that is pumped less the amount that is recovered through recovery wells. He also mentioned that the more water recharged and recovery wells we have the better off we are with respect to CAGRD replenishment requirements. Mr. Saletta presented several slides depicting how CAGRD is being utilized throughout the year and their increasing rates over the years. 6/11/2012 Water Utility Commission Minutes 2 -OVWU/CAGRD Factor -OVWU/CAGRD Payment Cost in $ -CAGRD Cost Per Acre Foot -CAGRD Groundwater (AF) & CAGRD Factor -CAGRD Groundwater (AF) & CAGRD Payment ($) -Comparison Showing OVWU Savings Achieved By Using Long Term Storage Credits -Contrast CAGRD Cost/AF and Contract Factor Mr. Saletta pointed out that in the Member Service Agreement beyond year 2014 there are no CAGRD excess water requirements and that the Town was not obligated to use CAGRD. Commissions' Points of Interest Definition of a Recovery Well Benefits of being a CAGRD member Oro Valley recovery well increases in the future Reclaim water correlation to groundwater and recovery wells 5,500 a/f sustainable water level affect recovery wells CAP water allocation and future projections Purchases of Long Term Storage Credits are they considered as capital expenses or O&M CAGRD long term viability will it diminish Who receives the CAP $15.00 acre foot component? Mr. Saletta gave a breakdown of CAGRD costs per a/f from Year 2006 through 2014. Mr. Saletta pointed out that due to the increasing CAGRD rates Oro Valley must use CAGRD less and continue to use its recovery wells. We also need to purchase groundwater extinguishment credits to build our Groundwater Allowance Account and continue using these credits to minimize the payments to CAGRD. This year's payment to CAGRD could be as much as $300,000. Ms. Seng presented a slide showing OVWU savings achieved by using Long Term Storage Credits (LTS) versus non-use year 2004 through 2011. Ms. Seng explained how the utility receives LTS credits by recharging approximately 1000 - 4000 a/f of CAP water to Kai Farms and other recharge facilities such as the Lower Santa Cruz Recharge Facility and Pima Mine Road Facility. Mr. Saletta pointed out that the utility paid out $800,000 but by transferring LTS credits to CAGRD we saved over $500,000. Ms. Seng also mentioned that the utility had a balance of approximately 12,000 a/f of LTS credits in 2011. The utility will transfer 951 a/f of LTS credits which will reduce our payment to CAGRD to $297,000 versus the $450,000 in year 2011. 6/11/2012 Water Utility Commission Minutes 3 Mr. Saletta mentioned that the member service areas would eventually like to reduce their use of CAGRD as they develop renewable water resources. The remaining credits can still be used for CAP direct delivery, recovery wells and be transferred or sold. Mr. Saletta gave a brief overview about the member lands which are direct customers of CAGRD and are not a member of CAGRD through a member service area. He explained that CAGRD also had an obligation to replace water for those lands also. Mr. Saletta summarized that the utility will have to pay $666.00 a/f for excess groundwater in year 2014 however the less we utilize CAGRD the better off we will be. We will continue our recharge efforts and build our LTS credits, develop renewable CAP water, use CAP through our recovery wells and purchase groundwater extinguishment credits for the future. Mr. Saletta ended his report. Chair Milkey mentioned that the structure was design to force members to utilize renewable water resources and it also allows the use of paper water. 2. DISCUSSION REGARDING MODIFICATION OF THE ORO VALLEY DESIGNATION OF ASSURED WATER SUPPLY (P. Saletta) Mr. Saletta reported that the Assured Water Supply designation allows the utility to approve plats and also states that Oro Valley's assured water supply allocation is 17,384 a/f per year. In 2011 the utility used over 9,990 a/f (2,256 reclaimed water, 7,734 potable groundwater). The 2003 Arizona Department of Water Resources AWS application will expire June 2013 and will need renewal. Mr. Saletta mentioned that if the original 17,384 a/f per year needs modifications the Town is allowed to make changes any time. Staff will be working on the application process during the summer. At this time no action is needed by the Commission. Mr. Saletta will discuss this item with the Town Manager and whether Council approval is required. There were no questions or discussion. 5. TOWN COUNCIL MEETINGS/COMMUNICATIONS (Councilmember Hornat) Councilmember Hornat commented that the Assured Water Supply application should be explained if it is presented to Council. He reported on the following: -6/20/2012 Design Review Committee meeting -Cancellation of the July and August Council meetings. Councilmember Hornat ended his report. 6. SUBCOMMITTEE/COMMISSIONER REPORTS a. Finance Subcommittee (Commissioner Tustison) Commissioner Tustison had no report. 6/11/2012 Water Utility Commission Minutes 4 b. Conservation Subcommittee (Commissioner Davis) Commissioner Reynolds had no Report. c. Water Resources Subcommittee (Commissioner Hoffmann) Commissioner Hoffmann had no report. 7. STAFF REPORTS a. Customer Service Report (S. Seng) Ms. Seng reported on Customer Service Report - May 2012 -Current Meter Installation, -Actual New Meter Installations, -Actual EDU's as of 5/31/2012 - Current Meter Replacements, -Water Audits. Ms. Seng ended her report. b. Capital Projects (B. Jacklitch) Mr. Jacklitch reported on several capital projects: Campo Bello Main replacement and Rancho Vistoso Reclaim Chlorine Storage Facility. Mr. Jacklitch ended his report. c. Potable and Reclaimed Water System Report (D. Ruiz) Mr. Ruiz presented several slides on the Potable and Reclaimed Water Systems which included: -Total Water Production Report; -2011-12 Monthly Water Production Report; Reclaimed Water Deliveries; -May 2012 Daily Demand & Average Reservoir Storage no precipitation events recorded; -Reclaim Water Deliveries. Mr. Ruiz ended his report. 8. DIRECTOR'S REPORT (P. Saletta) a. Colorado River Basin Streamflow Mr. Saletta presented information on the Arizona and Colorado River Water Watch monthly streamflows. Mr. Saletta ended his report. b. Upcoming Meetings -Water Resources, Finance Subcommittee and Conservation Subcommittee meetings will be scheduled in the near future -6/20: Town Council meeting -9/10: Water Utility Commission Meeting Mr. Saletta ended his report. 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 6/11/2012 Water Utility Commission Minutes 5 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. ADJOURNMENT::7:10 MOTION: A Motion was made by Commissioner Shapiro to adjourn and Seconded by Vice Chair Tustison. MOTION carried, 6-0. Prepared by: de-4,, 04(al/W/4e Iris L. Chaparr Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular sessionof the Water Utility Commission of Oro Valley, Arizona held on the , JD 2012. I further certify that the meeting was duly called and held an that a quorum was present. Dated this 1/ day of ,,jey,te-ml,q,b , 2012. 6/11/2012 Water Utility Commission Minutes 6