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Home My WebLink AboutPackets - Water Utillity Commission (44) AGENDA WATER UTILITY COMMISSION REGULAR SESSION OCTOBER 10, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members 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 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. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE SEPTEMBER 12, 2022 REGULAR SESSION MEETING MINUTES 2.DISCUSSION ON WATER RATES ANALYSIS SCHEDULE (P. ABRAHAM) 3.UPDATE AND DISCUSSION ON NWRRDS (P. ABRAHAM & L. JACOBS) 4.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) 5.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) 6.UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITES (D. ALLRED) 7.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) 8.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) 9.SUBCOMMITTEE/COMMISSION REPORTS A.FINANCE SUBCOMMITTEE B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE 10.DIRECTOR'S REPORT CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members 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 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. FUTURE AGENDA ITEMS ADJOURNMENT POSTED: 10/06/2022 at 5 p.m. by dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Water Utility Commission 1. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: REVIEW AND APPROVAL OF THE SEPTEMBER 12, 2022 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I move to approve (approve with changes) the September 12, 2022 regular session meeting minutes Attachments September 12, 2022 Draft Minutes D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION September 12, 2022 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER - Chair Marek called the meeting to order at 5:00 p.m. ROLL CALL Present: Byron McMillan, Commissioner Chuck Hollingsworth, Commissioner Robert Milkey, Commissioner Tom Marek, Chair Alan Forrest, Commissioner Patricia Olson, Commissioner Greg Hitt, Vice Chair Staff Present:Peter A. Abraham, P.E., Water Utility Director Mary Rallis, CPA, Water Utility Administrator David Allred, Water Operations Manager Lee Jacobs, P.E., C.P.M., Engineering Division Manager CALL TO AUDIENCE - There were no speaker requests. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE AUGUST 08, 2022 REGULAR SESSION MEETING MINUTES Motion by Alan Forrest, seconded by Byron McMillan to approve the August 8, 2022 regular session meeting minutes as written. Vote: 7 - 0 Carried 2.CENTRAL ARIZONA PROJECT (CAP) PRESENTATION BY CAP COMMUNICATION REPRESENTATIVE MITCH BASEFSKY CAP Representative Mitch Basefsky gave a presentation on the current state of the Central Arizona Project. He presented on the following: -How CAP operates -CAP water usage percentages for 2022 -How the Tucson region uses CAP water -Colorado River water supply report as of August 2022 -Lake Powell and Lake Mead August 2022 24-month studies -Lower Basin and Binational water contingency plans -How Arizona is engaged in CAP and water conservation 3.UPDATE AND DISCUSSION ON FEASIBILITY OF EXPANDING THE RECLAIMED WATER SYSTEM (P. ABRAHAM) Water Utility Director Peter Abraham provided background information on the reclaimed water system including: -Reviewing Phases I and II construction and financing data -Graphical representation of Phases I and II -Reclaimed water usage by year from 2005 to 2021 Water Utility Director Peter Abraham discussed Phase III including: -Possible alignment of new reclaimed water delivery points -Explained multiple alignments are being reviewed to find the most efficient and cost effective alignment Discussion ensued amongst the Commission about other potential delivery points, including the Oro Valley Country Club. 4.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) Councilmember Bohen reported that Council approved the Naranja Trails Subdivision, which will include 64 homes. Councilmember Bohen stated that the Council is back to its regular meeting schedule. 5.SUBCOMMITTEE/COMMISSIONER REPORTS A.FINANCE SUBCOMMITTEE - No report. B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - No report. 6.DIRECTOR'S REPORT Water Utility Director Peter Abraham provided the Director's Report which included upcoming meetings. CALL TO AUDIENCE - There were no speaker requests. FUTURE AGENDA ITEMS Commissioner Robert Milkey suggested a tour for the Commission of the Reclaimed Facility in the spring. ADJOURNMENT Motion by Commissioner Greg Hitt, seconded by Commissioner Patricia Olson to adjourn the meeting at 6:22 p.m. Vote: 7 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 12th day of September, 2022. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Nicole Noble Senior Office Specialist Water Utility Commission 2. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: DISCUSSION ON WATER RATES ANALYSIS SCHEDULE (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Water Rate Update and Discussion Water Utility Commission October 10, 2022 Oro Valley Water Utility Update & Discussion on Water Rates Analysis for FY 2023-24 Peter A. Abraham. P.E. Water Utility Director Water Rates Update & Discussion Outline Purpose Water rate analysis goals Schedule Purpose Purpose In accordance with Mayor and Town Council Water Policies – II.A.2.b(4), an annual review of the revenue requirements and water rates is performed to ensure the long-term financial health of the Water Utility. Functions of the Oro Valley Water Utility Commission include reviewing and developing recommendations for water revenue requirements, water rates and fee structures. The Commission evaluates staff recommendations based on a rates analysis to ensure the recommendations meet Town policies and bond covenants. Develop water rates that generate sufficient revenue to: Water rates analysis goals Meet revenue and cash reserve requirements Meet debt service coverage requirements Ensure revenue stability Maintain the overall financial health of the Utility The water rates shall also: Promote water conservation Be the minimum necessary to avoid rate shock Adapt to changing rate drivers and consumer trends Be equitable between customer classifications Recover the cost of service (Potable & Reclaimed) Tentative Schedule 11/xx/23 Finance Subcommittee meeting -TBD 12/xx/23 Finance Subcommittee meeting -TBD 01/09/23 WUC meeting: -Update & Discussion on rates analysis 02/13/23 WUC meeting: -Update & Discussion on rates analysis -Make recommendation to Town Council on proposed rates 03/01/23 Town Council: -Notice of Intent (NOI) to change water rates 03/02/23 Publish public hearing date on Town website: -Minimum 60-day notice prior to Public hearing date 03/02/23 Publish NOI: -Minimum 20-day notice prior to Public hearing date 06/07/23 Town Council: -Public Hearing (60 days from NOI) -Council considers adoption of water rate change 07/08/23 New rates become effective (30 days after adoption) Water Rates Analysis Discussion Water Utility Commission 3. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON NWRRDS (P. ABRAHAM & L. JACOBS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments NWRRDS Project Update Peter A. Abraham, P.E., Water Utility Director Lee Jacobs, P.E., Engineering Manager Water Utility Commission Meeting October 10, 2022 Oro Valley Water Utility Update & Discussion on the Northwest Recharge, Recovery and Delivery System Project NWRRDS Partnered Project Update The foundation of the NWRRDS Project April 2017: The governing bodies of Metro Water, the Town of Marana and the Town of Oro Valley unanimously approved the NWRRDS IGA, a 50-year IGA. Capacity Entitlement: Oro Valley & Metro Water: 4,000 AFY Marana:2,400 AFY Project was advertised and the lowest responsive Bid was approximately 20% over the latest Engineer’s estimate and 30% over recent budget projections. For large construction projects there is a shortage of labor, material availability, lack of supplier guaranteed pricing, competition for labor and material due to recent passage of infrastructure law and global conflict all contribute to the escalation of bids. Partners have decided not to award the contract. The Partners will evaluate the bidding environment on an annual basis (or more frequently based on market conditions) to determine the appropriate time to move forward with a new bid solicitation. Partners are currently working with the contracting community on additional value engineering of the project to reduce the contracting community’s expose to risk and to minimize supply chain uncertainty with respect to the project. NWRRDS Independent Project Update Independent Pipeline Design and Property Acquisition Property & required easements have been secured Engineering is reviewing the 100% design plans Hydraulic analysis completed Project will be bid once partnered project begins Project originates at Partnered project area near Lambert / Twin Peaks road and terminates at Independent Reservoir & Booster station near Shannon and Naranja NWRRDS Independent Project Update Independent OVWU Forebay Reservoir / Booster Station Design of reservoir and booster station underway Implementing the Design/build delivery method Existing system connections from booster station in early stages of design Slated for completion in FY 2024/25 NWRRDS Independent Project Update Design of 16-inch blending line for Independent NWRRDS Forebay reservoir at Shannon Rd. Design of “D” zone blending line underway Includes approximately 2,000 linear feet of 16-inch water main Slated for completion in FY 2024/25 NWRRDS Project Update Discussion Water Utility Commission 4. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Capital Improvement Projects Oro Valley Water Utility Update and Discussion on Capital Improvement Projects Lee Jacobs, P.E., C.P.M. Engineering Division Manager Water Utility Commission October 10, 2022 Rehabilitation of well casing, pump, well head & motor Well completed and commissioned in 2002. Permitted for 850 GPM Proposed rehabilitation work for this FY 2022-2023 it to brush, bail, and swab casing and evaluation and selection and installation of new pump assembly Assessment of motor, rehab and replacement of bearings to be evaluated New well discharge heads will be modified or updated to accommodate sounders and level sensors Well Rehabilitation Well D-1 Civil and Control Panel Design updates Supplementing well field within the 10-164 system (TOV limits) Civil is 100% complete Well equipping design complete –control panel design 30% Continue to work with all stake holders to bring electricity to site Nakoma Sky Production Well Well site design and equipping Supplementing well field within the 10-164 system (TOV limits) Drill production well to 780 feet below surface 16” diameter casing Supplement “D” Zone water Remaining work: Well design is approximately 75% complete and electrical design, control panel as well as integration is 4 qtr. 2022 Steam Pump Well Catalina Shadows and Palisades Area Design of Redundancy Water Line Benefits: •Redundancy •Elimination of dead ends •Improved water quality •Reduced maintenance El Conquistador Subdivision Design of Redundancy Water Line Benefits: •Redundancy •Elimination of dead ends •Improved water quality •Reduced maintenance •Emergency Preparedness Increased wheeling capacity to Countryside Service Area Countryside Wheeling Station Upgrades Benefits: •Redundancy •Additional Capacity •Use of telemetry •Monitoring •Ability to operate remote Rancho Vistoso Booster Rehabilitation Replacement of booster pumps, motors, Control Panels, Security and associated piping Per OVWU Standard Detail New tank is ASME or Board Certified to operate as a pressure vessel -installed Improve safety for operators Rancho Vistoso Booster Station Evaluation and Design Rancho Vistoso Booster Rehabilitation Replacement of booster pumps, motors, Control Panels, Security and associated piping Per OVWU Standard Detail New tank is ASME or Board Certified to operate as a pressure vessel -installed Improve safety for operators Rancho Vistoso Booster Station Evaluation and Design Sun City Booster rehabilitation (HP) Tank Replacement “H” & “G” Zones Design new header piping, motors, pumps and control panel Install in (FY 2023-24) Sun City “H” & “G” Zone Booster Pressure Tank Replacement CIP Booster Replacement Program Discussion Water Utility Commission 5. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Financial Update Presentation Water Utility Commission Meeting October 10, 2022 Oro Valley Water Utility Update & Discussion on Water Utility Financials Mary Rallis, C.P.A. Water Utility Administrator Financial Update –Fiscal Year 2022/23 -Revenues REVENUES Actuals Thru 9/30/22 Budget Notes Potable Water Sales $3,491,000 $14,009,000 Projected to meet budget. Reclaimed Water Sales $385,000 $1,374,000 Projected to meet budget. Groundwater Preservation Fees $629,000 $2,400,000 Projected to meet budget. Service Fees $189,000 $824,000 Projected to meet budget. TOTAL REVENUES $4,694,000 $18,607,000 Revenues are projected to meet budget at fiscal year end. Financial Update –Fiscal Year 2022/23 -Expenses EXPENSES Actuals Thru 9/30/22 Budget Notes Personnel $782,790 $3,653,064 Projected to meet budget. Operations & Maintenance $1,802,766 $10,609,551 Projected to meet budget. Capital $0 $1,150,000 Projected to meet budget. Debt Service $4,645,695 $4,645,695 Debt service paid on 7/1/22. TOTAL EXPENSES $7,231,251 $20,058,310 Total expenses are projected to meet budget at fiscal year end. Customer Service Update –Thru 9/30/22 FY 2021/22 Thru 9/30/22 New meters installed 148 72 Customer base 21,114 21,186 Water audits performed 37 15 Water Smart Registered Accounts 7,095 7,116 Customer Portal (Start 8/29/22)-3,250 Discussion Water Utility Commission 6. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITES (D. ALLRED) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Update on Water Operations David E. Allred Water Operations Manager Water Utility Commission October 10, 2022 Oro Valley Water Utility Update and Discussion on Water Operations Activities OVWU Water Operations Water Operations Staffing Update: WUO II promoted to Water Operations Supervisor –Distribution WUO II promoted to WUO III –Water Quality WUO I promoted to WUO II –Distribution WUO I transferred to Customer Service Current open positions to fill –WUO I & WUO II Water Operations Administration Relocate Water Operations Supervisors to MOC: Supervisors relocated to the MOC to allow a more productive collaboration between supervisors and field staff and enable them to easily share resources IT set up workstations in common area for staff who need to use them Water Operations Administration SCADA Upgrade to Ignition Software Kickoff Meeting: Operations and IT held a project kick off meeting with Vertech to discuss the scope of the project, time frames, major milestones and various other technical issues Operations has a firm go live date for April 2023 with completed project before June 1, 2023 Project cost not to exceed $300K IT has purchased and installed the required servers and redundant servers Major Changes Faster login time Graphics easier to read and interact with True historian-customizable reports Reduced licensing costs Director’s view Water Operations Administration Screen shots: Current vs Proposed Water Production Activities Training New Operations Staff: Operations staff takes advantage of all opportunities to provide real time training for new staff Water Production Activities-ADC Inmate Work Program Overview of Program: Program officially kicked off August 2022 ADC trailer purchased and outfitted Water Production Activities-ADC Inmate Work Program Overview of Program: Site cleanup and painting Water Production Activities-ADC Inmate Work Program Overview of Program: Site cleanup and painting Water Control Systems Activities PLC Panel upgrades: Planned master potable PLC upgrade October 12 Reclaim master PLC currently reviewing bids Water Distribution Activities Main Repair: One minor main repair on 4” PVC Water Distribution Activities Fire Hydrant Security Retrofit: Old Defender style hydrant locks are cumbersome for staff and fire department personnel New Hydra-Shield locks are compatible with neighboring water utility hydrants and standardizing access for the fire departments Water Meter Operations Activities Staff assisted with SpryPoint CIS : Staff trained with SpryPoint to get the mobile app up and running Staff assisted with training other OVWU staff on the use of the mobile app Water Quality Activities Potable water sampling and analysis: 44,717 potable water samples taken Field analysis = Chlorine, TDS, pH and hardness Laboratory analysis = compliance and non-compliance samples Manage 1468 backflow prevention assemblies: 145 of these are town owned Managed through SAMS Crossconection software Permit new construction BPAs Manage construction water metering OVWU Water Operations Discussion Water Utility Commission 7. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Update on Water Resource Usage Peter A. Abraham, P.E. Water Utility Director Water Utility Commission October 10, 2022 Oro Valley Water Utility Update & Discussion on Water Resource Usage Oro Valley Main Service Area Jan –Sept 2022 Water Use by Type Countryside Service Area Jan –Sept 2022 Water Use by Type Discussion Discussion Water Utility Commission 10. Meeting Date:10/10/2022 Submitted By:Nicole Noble, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Director's Report Peter A. Abraham, P.E. Water Utility Director Water Utility Commission October 10, 2022 Oro Valley Water Utility Director’s Report Upcoming Meetings October 19, 2022 Oro Valley State of Town Luncheon El Conquistador 11:30 –1:30 October 27, 2022 Town Council Regular Session Council Chambers –6 pm November 14, 2022 Water Utility Commission Meeting Hopi Conference Room –5 pm Thank You