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O ro V alley
W ater U tility
APRIL 2020
ANNUAL
REPORT
TOWN OF ORO VALLEY
WATER UTILITY ANNUAL REPORT
APRIL 2020
TABLE OF CONTENTS
Page
About the Water Utility Commission ...................................................................... 1
Executive Summary ................................................................................................ 4
Water Resources ..................................................................................................... 6
Regulatory ............................................................................................................. 11
Engineering and Planning .................................................................................... 12
Capital Projects .................................................................................................... 13
Customer Service .................................................................................................. 18
Water Conservation .............................................................................................. 20
Operations & Maintenance .................................................................................. 21
Water Quality ........................................................................................................ 23
Backflow Prevention ............................................................................................ 24
Security & Emergency Response .......................................................................... 25
Financial Highlights ............................................................................................... 26
Appendices
A. Static Groundwater Levels
B. Capital Improvement Program
C. Utility Statistics
D. Asset Inventory
E. Acronyms and Glossary
TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2020
ORO VALLEY TOWN COUNCIL
Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember
Rhonda Piña, Councilmember
Bill Rodman, Councilmember
Steve Solomon, Councilmember
ORO VALLEY WATER UTILITY COMMISSION
Byron McMillan, Chair
Richard Reynolds, Vice Chair
Chuck Hollingsworth, Commissioner
Charlie Hurt, Commissioner
Tom Marek, Commissioner
Robert Milkey, Commissioner
Winston Tustison, Commissioner
TOWN STAFF
Mary Jacobs, Town Manager
Peter A. Abraham, P.E., Water Utility Director
Lee Jacobs, P.E., C.P.M., Engineering Division Manager
Mary Rallis, C.P.A., Utility Administrator
Danielle Tanner, Senior Office Specialist
Special recognition to Oro Valley Water Utility staff that provided graphics, data, photos and
their time to assist in the preparation of this report:
Karn Boyce Mary C. Kobida Susan Shelton
Gracie Hauvermale Virginia McClelland Christian Swanson
Robert Huerta Page Morrison Irene Swanson
Jeffrey Kane Adam Pence Louis Valencia
George Kendrick Eric Reynaga
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ABOUT THE WATER UTILITY COMMISSION
The Oro Valley Water Utility Commission is appointed by the Oro Valley Mayor and Council
(Mayor and Council). The Mayor and Council have jurisdiction over rates, fees and water
management issues. In March of 1996, the Mayor and Council created the Oro Vall ey Water
Utility Commission (commission) to act as their advisory body. Please refer to the Town Water
Code, Article 15-4, on the Town website at http://www.codepublishing.com/AZ/OroValley/
The commission is composed of seven members that shall serve terms of three years. The
commissioners are selected to give a balanced representation of residential and
commercial/turf interests served by the Utility.
The primary responsibility of the commission is to review and make recommendations on Oro
Valley Water Utility items that require Mayor and Council action. These items may include
water system development, long-term water resource planning, rate adjustments, five-year
capital improvement program, state and federal legislation regarding water related issues,
expansion of service areas and water acquisitions. The commission also supports community
programs and education related to the Oro Valley Water Utility.
The commission welcomes the public to attend its meetings. The commission meets the
second Monday of each month, unless otherwise posted. All meetings are noticed on the
Town's website.
In 2019, the commission held 10 Water Utility Commission meetings. Notable actions or
commission review and comment taken or provided by the commission in 2019 include:
Meeting Date Action Item
January 14, 2019 Recommendation for acceptance of the Preferred Financial Scenario
as identified in the Water Rates Analysis
January 14, 2019 Recommendation for acceptance of the AZWARN Mutual Aid
Agreement
February 11, 2019 Appointments to the Water Utility Commission Subcommittees
February 11, 2019 Election of the Commission Chair and Vice Chair
March 11, 2019 Recommendation for acceptance of the Annual Report
March 11, 2019 Recommendation for acceptance of the Water Code changes
June 12, 2019 Review and comment on 10-year Water Resource Strategic Plan
September 9, 2019 Review and comment on Development Impact Fee Analysis
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Additional notable items on commission agendas in 2019 include:
Tour of the Avra Valley Recharge Project, Northwest Recharge, Recovery & Delivery
System and the Lower Santa Cruz Recharge Project
10-Year Water Resource Strategic Plan
10-Year CAP Water Wheeling Delivery Plan
Water Resources Utilization Plan
Water Utility Development Impact Fee analysis
Water Rates and Reclaimed Cost Analysis
Notable issues planned for commission review or action in 2020 include:
Water rates analysis and proposed rate changes
Recommendation for acceptance of the Annual Report
Impact Fee Analysis
Northwest Recharge and Recovery Delivery System Project
Groundwater metrics and wellfield condition
Water conservation program
10-Year Water Resource Utilization Plan and Community Sustainability
10-Year CAP Water Wheeling Delivery Plan
Reclaimed water usage and entitlement
Central Arizona Project water supply
In addition to the regular commission meetings, there are meetings conducted by standing
subcommittees. The subcommittee membership is as follows:
Finance Subcommittee
Winston Tustison
Chuck Hollingsworth
Robert Milkey
Water Resources and Conservation Subcommittee:
Byron McMillan
Charlie Hurt
Tom Marek
COMMITTEE REPORTS
In accordance with the Town’s Water code Article 15-4-5 Committee Reports the commission
shall render to the Town Council an annual report on or before April 1st. This report is
prepared by the Utility staff and reviewed by the commission for completeness and accuracy.
The Water Utility staff would like to thank the commission for their detailed review and
contributions to ensure the accuracy of this annual report.
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WATER UTILITY COMMISSION 2020
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TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2020
EXECUTIVE SUMMARY
The Executive Summary contains information regarding the work done by the Water Utility
Commission and includes a briefing on the Utility’s operations, capital projects, water
resource portfolio and financial management.
WATER RESOURCES
The Utility operates two water systems, the Oro Valley Water Service Area and the
Countryside Water Service Area. There are three sources of supply: groundwater, Central
Arizona Project water and reclaimed water. Groundwater is pumped from the wells in the
aquifer below the water service areas, blended with the Central Arizona Project water and
then delivered through the potable drinking water distribution system. Reclaimed water is for
non-potable uses and is predominantly used for irrigation on golf courses, parks and athletic
fields. The potable drinking water system is completely isolated from the reclaimed water
system.
TABLE 1
Total Water Produced in 2019 (Acre Feet)
Groundwater CAP Water Reclaimed
Water
Total Water
Produced
4,596 2,477 1,761 8,834
The Utility uses Central Arizona Project water in the following three ways:
1) Recharge and recover water for delivery to the potable water systems in both Oro
Valley and Countryside
2) Recharge for replacement credit to apply to water pumped from the Utility’s wells
3) Recharge and store water in recharge facilities for future use
As of December 31, 2019, the total in the long-term storage credit amount was 24,772 acre
feet and the total in the Groundwater Allowance Account was 19,130 acre feet.
CUSTOMER SERVICE
At the end of 2019, the Utility had 20,324 customer connections serving a population of
approximately 45,697 residents in the service area. Utility water sales revenues totaled $12.4
million for fiscal year 2018-19 with delinquent write-offs of less than one percent.
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WATER CONSERVATION
The Utility encourages water conservation by informing and educating customers. Specifically
in 2019, the following conservation efforts were accomplished:
740 students participated in the Conservation Kids program
56 customer water audits were performed to help customers reduce water use
There were over 4,800 registered accounts on the WaterSmart Program
Community outreach providing water conservation information in pamphlets and
brochures, making presentations at homeowner associations and participating at
community events
WATER UTILITY OPERATIONS
Water operations are a 24 hour per day, seven days per week operation. Staff performed
routine maintenance on all production and distribution facilities. Utility personnel inspected
new development projects and the Utility’s capital projects. This past year, t he Utility
personnel, with assistance from a security consultant, reviewed, refined and updated the
security program training videos and facilitated a table top exercise.
WATER QUALITY
In 2019, the Utility received 4,788 analytical results for required water sampling and
operational data. The water system is in compliance with the Arizona Department of
Environmental Quality and the United States Environmental Protection Agency requirements.
FINANCIAL HIGHLIGHTS
The Utility continues to be fiscally sound. Recommendations on water rates for 20/21
included an increase in the monthly base rates. If adopted, the majority of customers will
realize an increase of $1.00 per month. The recommendation also includes a decrease to the
reclaimed commodity rate and reclaimed groundwater preservation fee. This change will
result in a $2,200 decrease per month for turf customers using 10M gallons per month. The
increases in water rates are scheduled to go before Mayor and Council for approval on June 3,
2020.
In conclusion, the Oro Valley Water Utility Commission and Water Utility staff are proud to
serve the Mayor and Council of the Town of Oro Valley and its residents and customers.
Additional information for the Utility can also be found on the Town’s website at
https://www.orovalleyaz.gov/town/departments/water-utility
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TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2020
INTRODUCTION
This report provides information to the Mayor and Council and the public on the annual work
of the Water Utility Commission and updated information on the Oro Valley Water Utility
(Utility). The report outlines how the divisions within the Utility work together to provide the
community with reliable and safe water supplies. Through partnerships with other
professional water agencies, the Utility maintains water quality standards, protects the
groundwater supply and conducts long-term future planning for water resources and capital
infrastructure. The report details how the Utility maintains financial health through analyzing
and initiating responsible water rates and through new development cost recovery. This
report covers information and activities primarily for calendar year (CY) 201 9 with additional
information reported for fiscal year (FY) ending June 30, 201 9.
WATER RESOURCES
The primary function of the Utility is the production and efficient use of available water
resources that meet or exceed water quality standards. To ensure long-term sustainability,
the Utility works closely with regional water providers, state agencies and the development
community in planning for future water resource requirements. Utili ty staff closely monitors
all water resources in the Utility’s water portfolio. The water portfolio includes groundwater,
Central Arizona Project (CAP) water entitlement, reclaimed water entitlement, long -term
storage credits and groundwater allowance account credits.
Current Water Supply includes groundwater, CAP water and reclaimed water. The Utility
operates in two separate water service areas: the Oro Valley Water Service Area (OVWSA)
and the Countryside Water Service Area (CSWSA). The CSWSA was acquired by the Town with
the acquisition of the private water companies in 1996. This small satellite service area is
located approximately two miles from the western boundary of the Town. Data from these
two service areas is combined for regulatory reporting purposes. The following table provides
the water production in acre feet (AF) for both service areas in 201 9.
TABLE 2
Total Water Production in 2019
Water Resources OVWSA CSWSA Totals
Groundwater 4,167 AF 429 AF 4,596 AF
CAP Water 2,289 AF 188 AF 2,477 AF
Reclaimed Water 1,761 AF ---- 1,761 AF
Total 8,217 AF 617 AF 8,834 AF
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Total water production for 2019 was 369 acre feet less than the total water production in
2018. This decrease is due to customer response to improved fall, winter and spring
hydrology, as well as reduced consumption of reclaimed water resulting from loss of the 18-
hole Vistoso Golf course.
The graph in Figure 1 shows total water production in both service areas from 1999 through
2019. The components of total water production include 1) groundwater production 2) CAP
water utilization and 3) reclaimed water utilization. The graph depicts the decrease in overall
water production for 2019 as compared to 2018 as well as the dramatic decrease in
groundwater utilization since 2005.
FIGURE 1
Groundwater target maximums are also illustrated on the graph shown in Figure 1. These target
amounts were defined in a study entitled Groundwater Sustainability Evaluation of the Oro Valley
Aquifer dated March 14, 2007. The study concluded that the annual groundwater production flow
rate for wells in the OVWSA should be established at 5,480 acre feet and 880 acre feet for wells in the
CSWSA. In 2019, Oro Valley pumped 1,313 acre feet less than the groundwater target maximum
production rate for the OVWSA wells and 451 acre feet less than the target maximum production rate
for the CSWSA wells. The groundwater production targets have not been exceeded since 2011.
Groundwater remains the primary potable water resource for the Utility. In 2019, the Utility’s 19
groundwater production wells produced 52 percent of the Utility’s total water production.
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Table 3 highlights the production capacity in all wells, the storage capacity in all reservoirs
and the average rise or decline in static water levels for the wells in both service areas at the
end of CY 2019.
TABLE 3
Groundwater
Production Capacity
Storage
Capacity
(Gallons)
Average
Water Level
+Rise/-Decline
OVWSA 13.1 MGD 11 Million -0.75 Feet
CSWSA 2.2 MGD 1 Million +2.29 Feet
On an individual basis, groundwater level changes in 2019 for active wells varied from a rise
of 5.94 feet to a decline of 6.75 feet. Details on static groundwater levels for individual wells
may be found in Appendix A.
Central Arizona Project (CAP) Water is the Utility’s only other potable water resource. In
2019, the Utility’s four CAP wheeling locations delivered 28 percent of the Utility’s total water
production. The Utility delivers its entire annual CAP entitlement of 10,305 acre feet to
several recharge facilities in the Tucson Active Management Area. In 2019, the Utility
purchased the entire entitlement for use as follows:
1) Recharge and recover water for delivery to the potable water system
2) Recharge and replace water pumped from the Utility’s wells
3) Recharge and store water in recharge facilities for future use
For example, when Oro Valley’s CAP water is recharged and recovered for delivery, it is first
delivered to Tucson Water’s Central Avra Valley Storage and Recovery Project. The recharged
CAP water is then recovered and delivered through the Tucson Water system to various
connection points on the Oro Valley system for delivery to Utility customers.
The Utility has an Intergovernmental Agreement (IGA) with Tucson Water enabling the
delivery of CAP water to customers through four connections to the Tucson Water system.
There are three CAP water connection points in the OVWSA. One is located on Vista del Sol,
north of Naranja Road a second connection is on Calle Buena Vista, south of Calle Concordia
and a third is located near Oracle and Hardy. CAP water is also delivered to the CSWSA at a
connection located on Camino de Oeste, just north of Linda Vista B lvd. The Utility delivered
2,477 acre feet of CAP water in 2019 thus reducing its reliance on groundwater. CAP water
deliveries are shown in Table 4.
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TABLE 4
CAP Water Deliveries in 2019
Locations Delivery
Vista Del Sol (OVWSA) 1,560 AF
Calle Buena Vista (OVWSA) 282 AF
Oracle & Hardy (OVWSA) 447 AF
Camino De Oeste (CSWSA) 188 AF
Total 2,477 AF
In calendar year 2017, the Town of Oro Valley, Metro Water and the Town of Marana began
collaboration on the development of a unique IGA to construct a future project known as the
Northwest Recharge, Recovery and Delivery System (NWRRDS). The IGA was unanimously
approved by each governing body in March of 2017. This agreement provides another means
for the Town to deliver CAP water to the Utility’s service areas. The project is estimated to be
completed in FY 2024 and will allow for the annual delivery of up to an additional 4,000 acre
feet of recovered CAP water.
The reservoirs on the Colorado River supply water to the CAP and other water projects in the
lower basin states of Arizona, California and Nevada. In addition, these reservoirs provide
required water deliveries to Mexico. This Colorado River water storage decline is due to the
extended drought the basin has experienced for nearly 20 years as a result of decreased
precipitation and snowpack. This has decreased flow in the river creating significant water
level declines in Lake Mead and Lake Powell resulting in historically low reservoir levels. Over
the last 20 years, water demands have exceeded available inflows for supply driving reservoir
levels lower.
Reservoir levels determine supply availability in accordance with shortage sharing guidelines
established in 2007 and amended in 2019. Beginning in 2018, The Arizona Department of
Water Resources (ADWR) and CAP staff collaborated with CAP water users and the Lower
Colorado River Basin states to finalize the Lower Basin States Drought Contingency Plan
(LBDCP). The LBDCP modifies the 2007 shortage sharing guidelines so that curtailments in
CAP deliveries happen sooner and are larger. The goal of this plan is to close the gap
between the over-allocation of the river’s natural replenishment capability, thus leaving
enough water in Lake Mead to avoid drastic cuts to priority subcontract holders like
Municipal and Industrial users. The LBDCP was approved by Governor Doug Du cey on
January 31, 2019 and was later approved by the Federal Legislature and went into effect on
January 1, 2020.
The LBDCP specifies what the curtailments are to all of the Lower Basin States depending on
the water surface elevation of Lake Mead on January 1st of the given year. Near term CAP
water delivery curtailments to municipal water providers, such as Oro Valley, are very
unlikely because Municipal users have the highest priority within the Central Arizona Project.
CAP water deliveries to agricultural users, the Central Arizona Groundwater Replenishment
District (CAGRD) and the Arizona Water Banking Authority (AWBA) will be curtailed 100
percent before Municipal users would be affected.
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If the Utility were to experience curtailments to CAP water deliveries, the Utility could replace
the curtailed volume with CAP water previously stored from various underground storage
facilities until the storage balance is depleted.
In accordance with the LBDCP, CAP curtailments on the order of 192,000 acre feet of the
CAP’s 1.6 million acre feet entitlement begin when the Lake Mead water surface elevation
falls below 1,090 feet in the August projections for the following January. The projected
January water surface elevation determines the level of curtailment to all the Lower Ba sin
States. The projected January 2019 water surface elevation in Lake Mead was projected to be
1,086 feet, approximately 18 feet higher than estimated in 2018. Part of this increase is due
to more water coming into Lake Mead from Lake Powell, which is also being affected by the
increased runoff from the Upper Colorado River Basin. For calendar year 2020, CAP will see
water delivery curtailments of 192,000 acre feet. This level of delivery curtailment has no
CAP delivery impact to Oro Valley.
The State of Arizona firms priority users from potential CAP curtailments through the creation
of the Arizona Water Bank Authority (AWBA). The AWBA has been storing water underground
for municipal and industrial water users to guard against the impacts of potential CAP delivery
curtailments. Over 600,000 acre feet of water has been stored underground by the AWBA in
the Tucson Active Management Area. This stored water will be made available to municipal
water providers to mitigate curtailments of CAP water deliveries to municipal water users. In
addition to the AWBA storing water, the CAGRD has stored water for the future to replenish
groundwater.
The Utility also continues to store CAP water to increase the balance of long -term storage
credits. This water will also be available to mitigate curtailments of CAP water deliveries.
The above action plans combined with a diverse water resource portfolio reduces the chances
of a water resource shortage in the event of CAP water delivery curtailments. In addition,
reducing demands through an increased focus on the efficient use of water resources will
help to preserve water supplies for future uses.
Reclaimed Water is produced from wastewater effluent from the sanitary sewer system and
then treated for irrigation and other non-potable uses. In 2019, the Utility’s reclaimed system
produced 20 percent of the Utility’s total water production.
Oro Valley owns all of the effluent produced by its customers. The Utility has an IGA with
Tucson Water to deliver reclaimed water to the OVWSA through their facility at Thornydale
and Tangerine. From that location, the Utility independently operates the transmission and
water distribution system that delivers the reclaimed water to reclaimed water customers in
the OVWSA. No reclaimed water is delivered to the CSWSA.
The Utility supplies reclaimed water for the irrigation of four golf courses, athletic fields at
one elementary school and Naranja Park. In 2019, 1,761 acre feet of reclaimed water was
delivered. This is a decrease of 132 acre feet compared to the 1,893 acre feet delivered in
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2018. For 2019, the Utility utilized all of its estimated 1,600 acre feet of reclaimed
entitlement.
REGULATORY
The ADWR requires the Water Utility to replace all of the groundwater pumped from wells
owned and operated by the Utility. To comply with this requirement , every acre foot of
groundwater pumped is replaced through annual aquifer recharge utilizing CAP water. The
replacement of pumped groundwater can happen anywhere within the Tucson Active
Management Area. Due to the lack of Utility-owned aquifer recharge facilities, the Utility
recharges the aquifer outside of the service area to meet this requirement. Long-term storage
credits can also be used to replace the groundwater pumped to maintain compliance with
ADWR requirements.
The Designation of Assured Water Supply (DAWS) issued by the ADWR requires compliance
with the Fourth Management Plan in the Tucson Active Management Area. In 201 9, the
Utility was in compliance with all requirements under the DAWS and fully expects to meet all
requirements in 2020. The ADWR requires the Utility to submit water system information and
water usage data in an annual report. The information provided includes service area
boundaries, total water use, population, gallons per capita per day, recharge, recovery and
system water loss.
Pursuant to the DAWS, the Utility has a right to pump a maximum of 13,384 acre feet per
year. However, the 2007 study entitled Groundwater Sustainability Evaluation of the Oro
Valley Aquifer determined that the Oro Valley aquifer has a sustainable groundwater
production rate of approximately 6,360 acre feet per year (5,480 acre feet for the Oro Valley
Service area plus 880 acre feet for the Countryside Service Area). "Sustainable" in this 2007
study refers to the projected volume of water that can be pumped from wells each year as
calculated over a 30-year period through 2037. The Utility has established a goal that the
“sustainable” value be a groundwater target maximum value by which annual groundwater
required beyond this threshold would trigger the utilization of additional renewable water
resources. Groundwater levels are assessed annually to determine the impact on the aquifer
and well production. Recently, groundwater levels have shown declines less than projected in
the 2007 study.
Long-Term Storage Credits are earned when water is recharged and stored underground for
more than one year. In 2019, the Utility purchased 10,305 acre feet of CAP water for delivery
to recharge facilities. Of that amount, 3,232 acre feet were not used for direct delivery or
annual recovery; therefore, increasing the long-term storage credit balance. The water stored
will be saved for future use. At the end of 2019, the Utility calculated that it had 24,643.43
acre feet in long-term storage credits.
Table 5 shows the estimated water storage summary for the end of the 2019 calendar year.
The ADWR will make adjustments to the storage balance to account for recharge basin
evaporation and aquifer losses. The final balance will be provided by ADWR in October of
2020.
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TABLE 5
Water Storage Summary
Calendar Year 2019
(Acre Feet)
Groundwater
Storage Facility
2019 CAP Delivery to
Storage Facility
2019 CAP Recovery
from Storage Facility
Storage Balance
12/31/19
Kai Farms 4,000 3,073 13,407.97
Lower Santa Cruz 4,005 1,500 7,708.39
Pima Mine Road --- --- 2,868.02
Central Avra Valley 2,300 2,500 593.08
Effluent Storage --- --- 65.98
Total 10,305 7,310 24,643.43
Note: The 2019 CAP recovery from storage facility column (3rd column) represents the aggregate of CAP
water either delivered to customers or used to replace the groundwater that was pumped.
The Groundwater Allowance Account identifies the amount of groundwater that can be
pumped, if desired, and still be considered exempt from the state's requirement for
replenishment in the Tucson Active Management Area. In general, the balance in the account
may be used for any groundwater pumped from a well that has a five year average annual
decline greater than four feet or water pumped from a well that is not permitted as a
recovery well. In 2019, the Utility did not use any credits from the Groundwater Allowance
Account. All of the Utility’s wells are permitted as recovery wells; therefore, long-term
storage credits were used to meet the replenishment requirements instead of using credits in
the Groundwater Allowance Account. The balance in the Groundwater Allowance Account at
the end of 2019 was 19,130 acre feet.
ENGINEERING AND PLANNING
The Engineering and Planning Division is responsible for planning and managing the design,
construction and inspection of new water infrastructure for the Town of Oro Valley as well as
providing engineering support to the Water Operations group.
Engineering and Planning is also responsible for managing and maintaining a Geographic
Information System (GIS) database on all existing water system infrastructure in coordination
with the Information Technology Department. Maps produced by GIS staff facilitate Utility
operations, planning and engineering.
In 2019, the New Development Section within the Engineering and Planning Division
completed the following:
Reviewed 15 water improvement plans
Approved 16 as-built plans
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CAPITAL PROJECTS
The Engineering and Planning Division manages the design and construction of capital
projects identified in the Capital Improvement Program and annual operating budget. These
projects are designed to improve efficiencies to existing facilities and improve service levels.
The capital projects are described below.
FY 2019-20 Capital Projects
La Reserve/Alder Springs PRV Station: This project is designed to move water from the F
Zone into the E2 Zone, creating a more efficient mechanism to move water from a
pressure controlled to a level controlled system. The project design was completed in
FY 2018-19 and construction is expected to be complete in May 2020.
Northwest Recharge, Recovery and Delivery System (NWRRDS) - Oro Valley
Independent Portion: This project is to design and build a delivery system capable of
delivering up to 4,000 acre feet per year of CAP water into the Oro Valley Water Utility
distribution system. Phase 1 environmental investigation and archaeological studies have
been completed and Phase 2 design of transmission main and OVWU intermediate
property acquisition is scheduled to begin in February 2020 for completion by December
2020.
Relocation of Pressure Reducing Valve at Well D8 to C4 Zone and Replacement of “D”
Zone Hydropneumatic Tank to an ASME Certified Vessel: This project is to optimize site
configuration and separate booster from the PRV, as well as improve the safety of the
hydropneumatic tank. This will allow for a more efficient and reliable operation of the C4
Zone. This project is anticipated to be complete in late FY 2019-20.
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Naranja Reservoir Rehabilitation of Interior Coatings: This project is within the rotation
of the water reservoir rehabilitation to repair and patch the roof, floor and sides of
reservoir with a protective coating that will prevent corrosion. This project was completed
in mid FY 2019-20.
Backflow Retrofitting of Fire Protection Systems: This is a multi-year project that began
in FY 2017-18 and is expected to continue through FY 2020-21. The purpose of this project
is to assess, evaluate and install backflow assemblies on commercial fire lines to ensure
the safety of the water system.
El Con Booster Operational Improvements: The project consisted of in-house design and
contractor manufacturer of all four pumps and El Con to boost water to Water Plant 16.
This is designed to move water more efficiently from the El Con Booster Station to Water
Plant 16 and then float water to the lower zones.
Steam Pump Well: Steam Pump well is located at historic Steam Pump Ranch and it will
provide system reliability for future growth. The well has been designed and constructed.
Facility equipping is scheduled for FY 2019-20.
Steam Pump Well Pump Testing Equipment
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MAG Meter Modifications and Installation: This project is an extension of the AMI meter
replacement program from FY 2018-19, to monitor all groundwater pumping in real time.
The meters on the wells will be replaced with AMI metering equipment to allow the Utility
to monitor the production flows in real time as well as take timely production readings.
This will improve the accuracy of non-revenue water accounting. This is a multiyear
project began in FY 2018-19 and is expected to be finalized for all well sites in late FY
2019-20.
MAG Meter Installation
La Cholla Blvd. Regional Transportation Authority (RTA) Project: The Utility’s water
mains along La Cholla Blvd. need to be relocated due to conflict with new RTA project to
widen La Cholla Blvd. from Overton to Tangerine Rd. The design of this project was
completed in FY 2017-18 and construction is expected to begin in the spring of 2019.
Construction of water main relocations is approximately 95 percent complete. Remaining
items involve final raising of valve boxes and punch list items after final pavement is laid
down. This project is expected to be 100 percent complete in September of 2020 or early
2021.
Wall upgrades and improvements to Production/Reclaimed Facility security wall: This
project will upgrade the existing wall coatings and pickets that secure the site and will
include some needed structural repairs and patching. Work on this project is 85 percent
complete with some lighting upgrades remaining and it is expected to be completed in
late May 2020.
Rancho Visto “G” Zone booster station 5,000 gallon hydropneumatic tank replacement:
This project is to replace a non-American Society of Mechanical Engineers (ASME) certified
pressure vessel. The replacement of non-ASME certified pressure vessels is ongoing work
to upgrade all pressure vessels within the Utility to ASME safety standards. Construction is
expected to take place in late FY 2019-20.
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Rancho Vistoso hydropneumatic tank
Valve Replacement Program: This is an ongoing project to replace aging and inoperable
water valves throughout the distribution system. Valves are identified through valve
exercising and through emergency activity. Additionally, we replaced 25 air release valves.
This project is substantially complete and is expected to be completed by May of 2020.
Valve Replacement
Well C-8 Rehabilitation and Repair: Well C-8 will include brushing and bailing of well,
repair of well casing, replacement header piping and new pump and chlorinator pad. It has
capacity to deliver up to 480 acre feet of groundwater per year.
Well litation
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C-8 New Well Discharge Head Well Casing Rehabilitation and Patching
La Cañada Booster Station Design: This project includes the design of two booster stations
and bringing in power to serve a future booster station. This FY will include design and
preliminary sizing of boosters to understand power demands and constructability options.
This design is expected to be completed in FY 2019 -20.
Rancho Del Oro & Woodshade Booster Rehabilitation: This project includes the
evaluation of both suction and discharge sides and evaluation and design of two booster
stations. Evaluation of design is expected to be complete in late FY 2019-20. Design is
expected to begin in FY 2020-21.
Future Capital Improvement Projects to be initiated in FY 2020-21 include equipping the
Steam Pump well, hydropneumatic tank replacements, main valve replacements, water main
relocations and continuing with Phase 2 of the NWRRDS. Most of these projects will be
financed with Series 2018 bonds. The proposed five year Capital Improvement Program for FY
2020-21 through FY 2024-25 may be found in Appendix B.
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CUSTOMER SERVICE
Customer Service is an integral element of the Utility providing a full range of support to its
customers. The Utility’s 20,324 metered connections serve a combined population of
approximately 45,697 for both water service areas. Customer Service responsibilities include
preparing the monthly billing, processing cash receipts, preparing daily deposits and
processing new meter applications. Staff also manages new and closed accounts as customers
move in and out of the water service areas.
Customer Service staff produced over 242,046 bills in FY 2018-19, generating $12,380,223 in
water sales revenue. This revenue does not include sales taxes, groundwater preservation
fees or service fees. Water sales revenue billed by user classification is illustrated in Figure 2.
FIGURE 2
The Utility has an IGA with Pima County Regional Wastewater Reclamation Department to
provide their monthly sewer billing. In addition, the Utility provides monthly and quarterly
billing for the Town’s Stormwater Utility. In FY 2018-19, the Utility processed a total of
$27,090,135 in payments for the Utility and the other two organizations as follows:
Oro Valley Water Utility $ 16,208,471
Pima County Wastewater Reclamation $ 9,470,614
Town of Oro Valley Stormwater Utility $ 1,411,050
It is important to note that the total payments handled by the Oro Valley Water Utility are in
excess of the water sales billed because the payments processed include sales taxes,
groundwater preservation fees, security deposits and other service fees char ged by the
Utility.
Of the above payments processed, the payments made with credit cards totaled $3,635,013.
This is a 5 percent increase over credit card payments made in FY 2018-19. The increase in the
use of credit cards for payment of utility bills creates efficiencies for customer service
$282,476
$865,388
$8,828,079
$1,102,671
$1,232,552
$69,057
Revenue By User Classification
FY 2018-19
Construction - 2%
Commercial - 7%
Residential - 71%
Irrigation - 9%
Reclaimed - 10%
Potable Turf - 1%
19
personnel. The vast majority of these credit card payments are made online and are
electronically entered into the billing system. This eliminates data entry errors and increases
time available for staff to perform other functions.
Advanced Metering Infrastructure (AMI) technology has improved the Utility’s customer
service capability. The volume of water lost from leaks has been reduced as a result of early
leak detection notification made possible with AMI technology. Additionally, staff has the
ability to identify the day and time of water use while speaking with customers which
significantly increases their ability to troubleshoot their water concerns. In the past, Customer
Service staff would issue a work order for the field staff to investigate and respond to
customers’ inquiries in the field.
AMI technology also created the capacity for the Utility’s new customer portal known as
WaterSmart which was implemented in September 2018. WaterSmart provides customers
the ability to monitor their own water use on an hourly, daily, weekly or monthly basis. They
can also set their individual water use thresholds that will enable the technology to send
them high water use alerts. Customer Service staff use the Utility’s customer kiosk to assist
customers with registering in WaterSmart and to teach them how to establish water use
thresholds.
The major accomplishments by Customer Service staff in 2019 include the following:
Produced over 242,046 water bills
Processed 5,193 change of service requests
Issued 3,470 work orders to field staff
Processed 243 new meter installation applications
Utility statistics, including the billing collection rate for 2019, may be found in Appendix C.
WATER CONSERVATION
The Utility continually looks for ways to
expand opportunities for public education
and advocacy regarding water conservation.
The WaterSmart online program was implemented in September 2018 and exceeded
registration expectations within the first year. This self -service tool allows customers to
access their water use at any time. Early leak detection and high use notifications save water,
Water Conservation is a key component of
the Utility’s overall water resource
management efforts. The Water
Conservation Program serves customers
through community outreach and
education. It engages the public with a
variety of tools and information to
emphasize long-term support for more
efficient water use.
20
reduce water waste and reduce the shock of high water bills. The WaterSmart technology also
helps to increase staff efficiency and effectiveness through the automation of high water use
alerts and customer communication.
There are over 4,800 registered accounts on the Oro Valley WaterSmart Program. This
is 28 percent of our total customer base
Customer sentiment has been positive with over 12,000 visits to our WaterSmart
portal in the last 90 days
More than 7,000 leak alerts have been sent to customers in the past year with over 29
million gallons saved
48 percent of leaks reported by customers were related to irrigation and is the most
common leak explanation with toilets being second
Water audits are a free educational and technical assistance service offered to residential,
HOA and commercial customers. Audits are conducted onsite and used to evaluate potential
water savings for both indoor and outdoor use. Common issues identified are overwatering of
landscape plants, irrigation timer settings, toilet leaks and service line leaks. Three full ye ars
of water use data is needed to evaluate and compare water savings before and after the
audit.
56 audits were completed in 2019 which is slightly higher than 2018 with 44 audits
Audits completed in 2018 were analyzed in 2019 and show an overall 19 percent
decrease in water use before and after the audit.
The Conservation Kids Program is the result of the partnership between the Utility, the
Environmental Education Exchange (www.eeexchange.org) and local area schools. This
program meets state educational requirements and has been available to schools in Oro
Valley and the CSWSA since 2014. This educational program focuses on 1st -3rd grade
students and creates an awareness of water conservation.
During the 2018-19 school year, 740 students across 8 schools participated in the
program
Other conservation activities include community and organizational presentations and
training sessions. The Utility continually looks for new ways to increase awareness of water
resources through water saving technology, research and service.
21
OPERATIONS AND MAINTENANCE
All Production, Distribution and Meter operations personnel are certified operators licensed
by the Arizona Department of Environmental Quality (ADEQ). There are two classifications
required for operators of the Oro Valley Water Utility: the OVWSA distribution system is a
Grade 4 and the CSWSA distribution system is a Grade 2.
All operations personnel work together to address water system problems. On-call staff
members respond to water system problems 24 hours per day, seven days per week. This on -
call staffing utilizes a tiered-level after-hours response protocol in accordance with the
existing Emergency Response Plan.
Production personnel are responsible for the operation and maintenance of wells, booster
pumps and reservoirs on the potable water system. In addition, Production personnel are
responsible for the booster pumps, metering stations and the reservoir on the reclaimed
water system. These systems are monitored with the use of Supervisory Control and Data
Acquisition (SCADA) technology. Production staff performs routine mechanical and electrical
maintenance at 46 production sites. They uphold operational balance for CAP water delivery
to the potable systems, maintain 21 disinfection injection pumps and disinfection residuals at
injection points on the potable and reclaimed water delivery systems. Production staff also
performs an annual groundwater level survey of static water levels in all wells.
The following are major activities and accomplishments of Production personnel in 2019:
2019 after hours – 352 overtime hours
6 Potable reservoir cleaning/inspections
Installation of 4 radar level sensors on existing reservoirs
Well E3 submersible pumping system pull and inspection. Decommissioned 06-27-19
Reclaim facility office upgrades and improvement
Relocation of meter operations group from Municipal Operations Center to the
Production office
Glover reservoir and Well D9 facility wall coating and repair project
Reclaim facility asphalt coating and parking lot expansion
Sun City Booster pump 1 manifold modification
Well meter replacement project. Installation/retrofit of 14 McCrometer meters
Performed maintenance on 45 Remote Terminal Units, two Master Controllers, two
Human Machine Interfaces, one Network Server and three network repeaters
Performed RSLogix 500 program modifications and FactoryTalk View graphics
interface modifications on two HMIs as needed
Began industrial control system/SCADA upgrades
Distribution personnel are responsible for maintenance and replacement of water
distribution system components. Components include water mains, valves, fire hydrants,
pressure reducing valves, drain valve assemblies, air relief valves and service lines. Staff
updates system mapping, installs new assets and performs erosion repairs, asphalt paving
22
and system flushing. These components are tracked by a database under the Utility’s
preventive maintenance program. Distribution staff is also responsible for the departmental
safety program.
Distribution staff has significant direct customer contact and professionally respond to
customers regarding water quality and pressure or flow related problems. Distribution staff is
responsible for repair of main line and service line breaks. Distribution staff bluestakes
underground water mains for all new and existing construction projects throughout the
Town’s water service area. Arizona law requires that all underground utilities be bluestaked
prior to any excavation in order to ensure the safety and welfare of the community by
protecting underground facilities from damage. An inventory of all facility assets may be
found in Appendix D.
The following are the major activities and accomplishments of Distribution staff in 2019:
Responded to 160 customer inquiries and 464 after hour call outs
Maintained 255 water valves, replaced 3 valves and performed 28 valve adjustments
Maintenance performed on 40 fire hydrants and made 283 repairs to fire hyd rants
Performed 124 tests, maintenance and/or repairs on 31 pressure reducing valves
Performed 12,580 bluestakes for potable and reclaimed pipelines
Performed 8 paving patches
Implementing and developing Cartegraph asset program
Designed and re- built 4-inch PRV station at Del Webb BLVD
Meter Operations
Advanced Metering Infrastructure (AMI) is an integral part of the Oro Valley Water system.
The advanced metering technology transformed how the Utility gathers water use data, how
staff collaborate with customers, and has improved water data management practices. The
AMI system has improved customer service by providing historical, on -site water usage data
to the customer to explain a problem such as a water leak. This saves customers water,
money and promotes continued water conservation efforts. Utility staff has increased their
technical knowledge and skills to provide this improved customer service feature. Staff uses
analytical and critical thinking skills to analyze and troubleshoot complex metering problems
and technical issues within the AMI system. Staff uses AMI network software, Meter Data
Using Town equipment, the Utility’s
distribution staff repaired 5 main line
breaks and 6 service line repairs. The
Utility realized an estimated savings
of $225,000 by performing this work
in-house rather than hiring an outside
contractor to make these repairs.
23
Management software, field collection and meter reading hardware, GIS software and data
collection software to manage water usage data and develop solutions to solve complex
problems and mitigate water use issues that impact Utility customers.
AMI technology also provides an opportunity to increase operational efficiency by eliminating
the need for labor intensive manual meter reading and reducing travel time. By increasing
operational efficiencies, meter operations staff can focus their time and capabilities on
oversight of the AMI system and related software. This includes proactively monitoring a nd
maintaining the AMI system, providing instruction and insight for electronic equipment
installations, programming, maintenance and repairs. Meter operations staff members focus
their efforts on improving operational efficiencies to perform additional water system
preventive maintenance and commercial meter testing.
WATER QUALITY
Water quality sampling and testing is an important priority to provide safe and reliable water.
The Town’s water system is in full compliance with all state and federal regulations. The
Utility is regulated by the ADEQ and provides all required water quality testing results to
ADEQ. The Utility works closely with ADEQ to ensure all federal and state standards are met.
The website for ADEQ is www.azdeq.gov.
In 2019, the Utility received 4,788 analytical results for required water sampling and
operational data for the potable water system and all ADEQ requirements were met. Each
year, the Utility collects hundreds of water samples from 15 point of entry sites. These sites
include groundwater wells, reservoirs and pumping stations. The Utility also samples from 58
sampling stations as required by ADEQ. These stations are located in neighborhoods
specifically selected to represent the water quality delivered to the customers throughout the
water distribution system. The Utility has an additional 91 sampling stations that can be used
during emergencies or to meet future testing requirements. Every three years, water samples
are taken from 50 private residences within the water service areas and tested for lead and
copper. This sampling was completed in June of 2019 and met the USEPA’s rules for lead and
copper. The Utility provides all water quality testing results to ADEQ and works closely with
that agency to ensure all federal and state standards are met.
During 2019, the Utility collected 696 samples for analysis of Total Coliform bacteria, all
samples were negative for bacteria. This is a direct result of a successful disinfection program
through wellhead chlorination, effective system monitoring, proficient sampling methods and
routine maintenance.
Testing includes water hardness which is a measurement of the concentration of calcium and
magnesium. During 2019, the hardness levels in Oro Valley ranged from 2.2 to 14.0 grain s per
gallon (37 ppm to 240 ppm). The Utility’s water hardness ranges from soft to very hard with
the majority of the water testing at moderately hard to hard. The water hardness varies
depending on the volume of CAP water that is being blended at any given time in a specific
pressure zone.
24
Due to proposed regulatory changes and requirements, in 2019 the Utility continued
preparation to phase in five proposed and pending USEPA regulations related to monitoring
rules:
Fourth Unregulated Contaminant Monitoring Rule February & August 2020
Revised Long-Term Lead and Copper Rule August 2020
Perchlorate TBD
Strontium TBD
Chromium Total/Hexavalent Chromium TBD
In 2020, the Utility will continue to phase in sampling and monitoring of new contaminants in
accordance with regulatory requirements.
The Utility produced the 2018 Consumer Confidence Report for both water systems in April of
2019. These reports are available electronically. Notices were mailed to customers letting
them know the reports could be found on the Town’s website under the Utility’s main page.
The 2019 Consumer Confidence Reports will be completed in April of 2020.
In addition to sampling the potable water system, water quality samples are routinely taken
on the reclaimed water system for chlorine levels and turbidity to assure compliance with
regulatory standards. All ADEQ standards and regulations for reclaimed water were met in
2019.
BACKFLOW PREVENTION
Backflow prevention is an important component of water quality designed to protect the
public water system. The purpose of this program is to keep the water supply safe from
contaminants that could be introduced into the distribution system through backflow, back
siphoning or back pressure from customer’s plumbing systems or internal processes.
The Backflow Prevention Program is administered in accordance with the Town of Oro Valley
Ordinance (O) 07-21, ADEQ Administrative Code section R18-4-B115, the International
Plumbing Code, and the guidelines of the University of Southern California Foundation for
Cross Connection Control and Hydraulic Research.
There are 1,619 backflow prevention assemblies in the program that are located in the Oro
Valley water service areas. The following are some of the major activities and
accomplishments performed by the Backflow Prevention Division in 2019:
Tested 238 backflow assemblies
Repaired 29 in-ground and construction water backflow prevention assemblies
Issued 54 permits for new and replacement backflow prevention assemblies
Conducted a survey and inspection of 498 backflow assemblies
Completion of the backflow assembly survey and inspections revealed that there were a
number of fire service lines installed between 1999 and 2004 that did not have backflow
25
assemblies installed. During that time frame, backflow assemblies were not require d on fire
service lines. Water sits idle in fire lines until the line is flushed for testing or when a fire event
occurs. This situation could create a potential hazard to the water system. As such, the Utility
has developed a three-year capital program to retrofit backflow assemblies on all fire lines
that do not currently have them.
SECURITY AND EMERGENCY RESPONSE
Under current federal guidelines, Water Operations personnel are considered first
responders. Though primarily mandated by state rules with public health responsibilities
(Arizona Administrative Code Title 18), water operators also have a public safety
responsibility relevant to the water systems they operate which includes support of
firefighting tasks. Any water system security situations also directly involve water operations
along with the Oro Valley Police Department as a first response action.
In 2019, Utility personnel, with the assistance of a security consultant has been mainly
focused on the process of implementing revisions defined in the America’s Water
Infrastructure Act of 2018 (S.3021). Related facility vulnerability assessments were
completed and AWIA 2018 certifications are due to the EPA December 31, 2020. Selective
training is done on an annual basis in accordance with the guidelines from the Department of
Homeland Security, Federal Emergency Management Agency and the United States
Environmental Protection Agency. The Utility has updated the Emergency Response Plan and
Business Continuity Plan on an annual basis and will continue to mitigate the elements
defined in the vulnerability assessments as well as those identified through the course of
business.
Security features, which include perimeter fencing, security walls, warning signage, motion
sensors, and cameras at all active production facilities were inspected to maintain integrity.
Hydrants throughout the system are protected by security locking systems.
The Utility is kept abreast of local, regional and national security issues by the Water
Information Sharing and Analysis Center (WaterISAC). WaterISAC has established secure and
close contact with partners in government to access sensitive and classified security
information. WaterISAC maintains two-way communication with the U.S. Department of
Homeland Security, especially its National Cybersecurity and Communications Integration
Center, the FBI, the U.S. Environmental Protection Agency, state intelligence fusion centers,
and other federal and state agencies.
The Utility is also a member of the Arizona Water/Wastewater Agency Response Network
(AZWARN). Members of AZWARN agree to provide assistance to other member utilities in the
event of an emergency.
26
FINANCIAL HIGHLIGHTS
The Utility is financially sound and continues to manage its revenues, control expenditures
and reduce debt. The Water Utility’s outstanding revenue bonds have a rating of “AA-” from
both Standard and Poor’s and Fitch Ratings. Ratings criteria include stable economic base,
sufficient water supply for current and long-term needs, a manageable capital improvement
plan, timely rate increases, maintaining adequate debt service coverage and cash reserve
balances.
Revenues and Expenditures
The Utility’s revenue consists of potable and reclaimed water sales, groundwater preservation
fees, miscellaneous service fees and charges, water development impact fees and interest
income. The Utility has three funds:
The Operating Fund is the primary fund for the Utility. Costs for the administration,
operations, existing system improvements and debt service are managed in this fund.
The sources of revenue are water sales, service related charges and Groundwater
Preservation Fees (GPF). The GPF funds are dedicated to pay for debt or capital costs
related to renewable water resources, renewable water supplies and costs to wheel CAP
water to the Town.
The Potable Water System Development Impact Fee Fund (PWSDIF) provides funding
for expansion related projects for new growth. The source of revenue for this fund is
potable water development impact fees. These fees are paid at the time a meter is
purchased. The funds collected ensure that the system expansion is paid for by new
development.
The Alternative Water Resources Development Impact Fee Fund (AWRDIF) provides
funding for the development of renewable sources of water supply and any
infrastructure required for delivery of those resources. The source of revenue for this
fund is alternative water resources development impact fees. These fees are paid by new
development for renewable water supply and infrastructure attributed to new growth.
27
Table 6 contains the actual revenue billed compared to the revenue budgeted in FY 2018-19
for all funds within the Utility:
TABLE 6
Revenue Source Budget
FY 2018-19
Amount Billed
FY 2018-19
Over (Under)
Budget
Over (Under)
Budget
Potable Water Sales:
Residential $9,058,400 $8,828,079 ($230,321) -3%
Commercial $875,500 $865,388 ($10,112) -1%
Irrigation $1,241,600 $1,102,671 ($138,929) -11%
Turf $111,500 $69,057 ($42,443) -38%
Construction $130,500 $282,476 $151,976 116%
Reclaimed Water Sales:
Turf $1,667,000 $1,153,562 ($513,438) -31%
Irrigation $51,700 $69,363 $17,663 34%
Construction $ 16,700 $ 9,627 $ (7,073) -42%
Subtotal Water Sales: $13,152,900 $12,380,223 ($772,677) -6%
Misc. Service Fees & Charges $746,000 $855,402 $109,402 15%
Groundwater Preservation Fees $2,437,500 $2,213,303 ($224,197) -9%
Total Enterprise Fund $16,336,400 $15,448,928 ($887,472) -5%
AWRDIF Impact Fees $1,476,597 $1,246,838 ($229,759) -16%
PWSDIF Impact Fees $735,557 $621,106 ($114,451) -16%
Interest Income – All Funds $134,056 $758,457 $624,401 466%
Total All Funds for FY 2018-19 $18,682,610 $18,075,329 ($607,281) -3%
Note: The interest income for FY18/19 was 466%. This is due to a combination of the interest income being
under-budgeted and an Administrative change in the allocation method of calculating and recording
interest income.
The budgeted expenses (excluding depreciation and amortization) for the Operating Fund are
compared to the actual expenses for FY 2018-19 in Table 7:
TABLE 7
Expenses
Budget
FY 2018-19
Actual Spent
FY 2018-19
Over (Under)
Budget
Over (Under)
Budget
Personnel $3,341,175 $3,141,492 ($199,683) -6%
O&M $7,426,606 $6,674,406 ($752,200) -10%
Capital Outlay $3,894,834 $2,783,200 ($1,111,634) -29%
Total $14,662,615 $12,599,098 ($2,063,517) -14%
The Utility’s personnel costs were under budget due to short term vacancies. The O&M
expenses were under budget primarily due to purchasing less reclaimed and wheeling less
CAP water. Capital expenses were less than budgeted due to changes in project sched ules.
28
Outstanding Debt
Table 8 is a summary of the outstanding debt (principal only) and the annual debt service
payments (principal and interest) for all funds within the Utility:
TABLE 8
Fund Bond
Series
Outstanding
Debt
At 12/31/19
Debt Service
Payments
FY 2019-20
Interest
Rate
%
Maturity
Operating (WIFA) 2008 $ 2,160,662 $ 310,727 3.5 2027
Operating (WIFA) 2009 $ 1,274,073 $ 149,123 2.2 2029
Operating 2012 $ 2,202,306 $ 579,744 4.0 2028
Operating (GPF) 2012 $ 4,014,308 $ 1,056,742 4.0 2028
Operating 2013 $ - $ 1,017,323 1.5 2019
Operating (WIFA) 2014 $ 3,014,023 $ 376,959 2.7 2029
Operating 2015 $ 852,060 $ 151,106 2.3 2025
Operating 2017 $10,555,978 $ 1,641,382 2.4 2026
Operating 2018 $ 5,873,250 $ 447,447 3.0 2033
PWSDIF 2012 $ 1,238,386 $ 325,996 4.0 2028
Totals $31,185,046 $ 6,056,549
Water Rates
The functions and duties of the commission include annually reviewing and developing
recommendations for water revenue requirements, water rates and fee structures. The
commission evaluates staff recommendations based on an annual water rates analysis to
ensure the recommendations meet Town policies and bond covenants. The Utility bases its
financial analysis on the American Water Works Association Cash Needs Approach.
The financial analysis for FY 2019-20 resulted in a recommendation to increase the base rates
for potable water customers in FY 2020-21 while keeping the tiered water use rates the same.
These proposed changes will result in a monthly base rate increase of $1.00 for the majority
of the Utility’s customers. The proposed rates will allow the Utility to recover more of the
fixed costs through revenue from base rates. In addition, the recommendation includes a
decrease to the reclaimed commodity rate and reclaimed groundwater preservation fee. This
change will result in a $2,200 decrease per month for turf customers using 10M gallons a
month. The proposed changes will be presented to the Town Council in June 2020 and, if
adopted, the new rates and groundwater preservation fees would become effective August 1,
2020.
All current water rates, fees and charges including impact fees are available to view on the
Town website at https://www.orovalleyaz.gov/town/departments/water-utility/rates-and-fee
TOWN OF ORO VALLEY
WATER UTILITY
2020 ANNUAL REPORT
APPENDIX A
STATIC GROUNDWATER LEVELS
STATIC GROUNDWATER LEVELS
The following table lists all production wells, the amount of groundwater pumped and the
change in depth to groundwater between January of 2018 and 2019:
Countryside Water Service Area
Well Name
Annual
Pumped Acre
Feet
1 Year
Change
2018 - 2019
5 Year
Change
2014 - 2019
5 Year
Average
2014 - 2019
CS-1 203.36 1.58 1.75 0.35
CS-2 225.74 3.00 4.25 0.85
Average 2.29 3.00 0.60
Oro Valley Water Service Area
Well Name
Annual
Pumped Acre
Feet
1 Year
Change
2018-2019
5 Year
Change
2014-2019
5 Year
Average
2014-2019
C-4 75 0.84 -11.24 -2.25
C-5 155 0.17 -11.04 -2.21
C-6 195 0.16 -10.14 -2.03
C-8 127 5.94 -6.64 -1.33
C-9 212 -1.17 -12.67 -2.53
D-1 208 -1.58 -12.50 -2.50
D-6 177 -1.00 -7.25 -1.45
D-7 143 -0.66 -8.86 -1.77
D-8 180 -0.50 -5.66 -1.13
D-9 410 -4.42 -10.07 -2.01
E-1B 347 -0.42 -11.87 -2.37
E-2 325 -6. 75 -15.75 -3.15
E-3 50 0.76 -10.66 -2.13
E-5B 299 -2.50 -12.42 -2.48
E-6B 454 -1.67 -9.17 -1.83
E-7B 303 1.00 -5.34 -1.07
F-1 506 -0.92 -11.58 -2.32
Average -0.75 -10.17 -2.03
A-1
TOWN OF ORO VALLEY
WATER UTILITY
2020 ANNUAL REPORT
APPENDIX B
PROPOSED FIVE - YEAR
CAPITAL IMPROVEMENT PROGRAM
B-1
B-2
B-3
TOWN OF ORO VALLEY
WATER UTILITY
2020 ANNUAL REPORT
APPENDIX C
UTILITY STATISTICS
FINANCIAL STAISTICS
C-2 C-1
C-2
C-3
TOWN OF ORO VALLEY
WATER UTILITY
2020 ANNUAL REPORT
APPENDIX D
ASSET INVENTORY
ASSET INVENTORY
Assets as of December 31, 2019
Potable Assets Quantity Value
CAP Water Rights (allotment in acre feet) 10,305 $ 6,172,361
Land --- 2,189,864
Wells (active & inactive) 28 10,074,973
Booster Stations 26 4,945,758
Reservoir Capacity (million gallons) 11.31 12,509,248
Fire Hydrants 2,339 3,324,983
Meters 20,324 9,179,781
Services 21,545 5,214,827
Equipment --- 2,062,516
Structures --- 1,998,819
Vehicles 35 1,987,135
Telemetry --- 451,416
Buildings & Improvements --- 425,715
Water Mains (miles) 369.3 67,174,905
The value of the following appurtenances are included in water mains:
Valves 8,438
Pressure Reducing Valves 30
Air Relief Valves 939
Drain Valve Assemblies 943
Subtotal Value of Potable Assets $ 127,712,301
Accumulated Depreciation ( 46,874,731)
Net Value of Potable Assets $ 80,837,570
Reclaimed Assets Quantity Value
Land --- $ 220,796
Telemetry --- 20,088
Booster Stations 2 7,271,902
Reservoir Capacity (million gallons) 1.3 2,294,968
Water Mains (miles) 13.9 12,312,153
The value of the following appurtenances are included in water mains:
Valves 77
Air Relief Valves 51
Fire Hydrants 3
Drain Valve Assemblies 1
Subtotal Value of Reclaimed Assets $ 22,119,907
Accumulated Depreciation ( 5,147,383)
Net Value of Reclaimed Assets $ 16,972,524
Total Value of all Water Assets Net of Depreciation $ 97,810,094
D-1
TOWN OF ORO VALLEY
WATER UTILITY
2020 ANNUAL REPORT
APPENDIX E
ACRONYMS AND GLOSSARY
ACRONYMS
ADEQ Arizona Department of Environmental Quality
ADWR Arizona Department of Water Resources
AF Acre Feet
AMI Advanced Metering Infrastructure
ASME American Society of Mechanical Engineers
AWBA Arizona Water Banking Authority
AWRDIF Alternative Water Resources Development Impact Fee
AZWARN Arizona Water and Wastewater Agency Response Network
BCP Business Continuity Plan
CAGRD Central Arizona Groundwater Replenishment District
CAP Central Arizona Project
CAVSRP Central Avra Valley Storage and Recovery Project
CSWSA Countryside Water Service Area
DAWS Designation of Assured Water Supply
EPA Environmental Protection Agency
ERP Emergency Response Plan
FY Fiscal Year
GIS Geographic Information System
GPF Groundwater Preservation Fee
GPM Gallons per Minute
IGA Intergovernmental Agreement
LSCRRP Lower Santa Cruz Replenishment Project
LTSC Long-Term Storage Credit
MGD Million Gallons per Day
NRRDS Northwest Recharge and Recovery Delivery System
OVWSA Oro Valley Water Service Area
PDEQ Pima County Department of Environmental Quality
PWSDIF Potable Water System Development Impact Fee
SCADA Supervisory Control and Data Acquisition
Water CASA Water Conservation Alliance of Southern Arizona
GLOSSARY
Acre Foot – The term used to define a large volume of water. One acre foot is equal to
325,851 gallons.
Arizona Water/Wastewater Agency Response Network – AzWARN is a statewide mutual
assistance program between water and wastewater utilities. This volunteer based network
allows utilities to help one another in times of emergency when the resources of a utility are
overwhelmed. The foundation of the network is a signed mutual aid agreement between all
participating utilities.
E-1
Aquifer – An underground layer of water-bearing permeable rock or unconsolidated materials
(gravel, sand, or silt) from which groundwater can be extracted using a water well.
Central Arizona Groundwater Replenishment District (CAGRD) - It was created in 1993 to
replenish (or recharge) the amount of groundwater pumped or delivered to its members which
exceeds their pumping limitations using any water source available except groundwater.
Central Avra Valley Storage and Recovery Project – An approved Underground Storage
Facility operated by Tucson Water located in the Tucson Active Management Area located
approximately one mile west of Sandario Road and just south of Mile Wide Road, in the Avra
Valley, Pima County, Arizona.
Colorado River Basin – The drainage basin of the Colorado River is located in the
southwestern United States and northwest Mexico. The 1,450 mile river drains an expansive,
arid watershed that encompasses parts of seven U.S. (Wyoming, Colorado, Utah, New
Mexico, Arizona and California) and two Mexican states (Sonora and Baja). Rising in the
central Rocky Mountains in the U.S., the river flows generally southwest across the Colorado
Plateau and through the Grand Canyon before reaching Lake Mead on the Arizona–Nevada
line, where it turns south toward the international border at Yuma, Arizona. After entering
Mexico, the Colorado approaches the large Colorado River Delta where it naturally empties
into the Gulf of California.
Effluent – Generally refers to wastewater that is treated and discharged to a natural water
course. Oro Valley Water Utility’s effluent is treated at facilities owned and operated by Pima
County. This treated wastewater effluent is the source of Oro Valley’s reclaimed water.
Fire Service Line –The pipe supplying fire flow to a building by any means other than a public
fire hydrant.
Five Year Capital Improvement Plan – A long-term plan for the future development of water
related projects to develop and deliver water supply to our community. It includes existing
system improvements and expansion related projects to meet future demands.
Groundwater – The water located in an aquifer beneath earth's surface in soil pore spaces
and in the fractures of rock formations. The depth at which soil pore spaces or fractures and
voids in rock become completely saturated with water is called the water table.
Groundwater Extinguishment Credits – Credits that are generated when a grandfathered
groundwater right is extinguished or retired and never be used again. The credits are issued a
certificate from the Arizona Department of Water Resources. Ownership of the credits can be
transferred from the owner to another entity within the same Active Management Area.
Kai Farms – An approved Groundwater Savings Facility located at a farm near Redrock,
Arizona that uses CAP water for irrigation.
Lake Powell – A water storage reservoir located on the Colorado River near Page, Arizona
with a capacity of 24.300 million acre feet. Glen Canyon Dam forms the lake and provides
hydro-electric power.
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Lake Mead – The largest water storage reservoir in the United States with a capacity of
25,900,000 acre feet. It is located on the Colorado River about 24 miles southeast of Las
Vegas, Nevada. Hoover Dam forms the lake and provides hydro-electric power.
Long-Term Groundwater Storage Credit – A credit for storing CAP water or wastewater
effluent that is accrued when this water is delivered to and recharged into an approved
underground water storage facility. Once the water is recharged and stored and a deduction
is taken for losses to the aquifer, it becomes a credit that can be used in the future either by
direct delivery or used as credits to replace groundwater pumped from recovery wells.
Lower Santa Cruz Replenishment Project – An approved Underground Storage Facility
operated by the Central Arizona Project located in the Tucson Active Management Area near
Marana, Arizona.
Northwest Recharge Recovery and Delivery System – Partnership project between The Town
of Oro Valley, Metro Water and The Town of Marana to plan, design, construct and operate a
recovery and delivery system to facilitate the delivery of recovered CAP water from the Lower
Santa Cruz Recharge Project and the Avra Valley Recharge Project to each partners respective
service area.
Pima Mine Road Recharge Project – An approved Underground Storage Facility operated by the
Central Arizona Project located in the Tucson Active Management Area near Sahuarita, Arizona.
Recharge – Recharge refers to the replenishment of an aquifer's groundwater. An aquifer
recharges water that percolates into the ground. Recharge takes advantage of water supplies
available now and stores them for future use. Recharge also allows the slow introduction of
new water supplies into our drinking water system by blending the new source with exis ting
groundwater.
Tucson Active Management Area – One of five Active Management Areas in Arizona
established under the 1980 Groundwater Code to manage groundwater usage through the
Assured water Supply Program.
Turbidity – Turbidity is the cloudiness or haziness of a fluid caused by large numbers of
individual particles that are generally invisible to the naked eye, similar to smoke in air.
Zones – A “zone”, or “pressure zone” is defined as the area bounded by both a lower and
upper elevation. Water service areas with elevation changes establish pressure zones to
ensure that all customer’s water pressure is within a prescribed pressure range regardless of
the customers’ service elevation.
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