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Annual Reports - 4/1/2017
Town of Oro Valley 0 9 Water Utility Commission Annual Report April 2017 rAt � ALERTING! TOWN OF ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT APRIL 2017 TABLE OF CONTENTS Page About the Water Utility Commission......................................................................1 ExecutiveSummary................................................................................................4 Customer Service Section........................................................................................6 MetersOperations Section.......................................................................................7 WaterQuality..........................................................................................................8 CurrentWater Supply............................................................................................10 Water Resource Planning and Management ............................................... ....14 Water Conservation Program.................................................................................17 Water Utility Operations — Production and Distribution.......................................18 Security and Emergency Response Plan .......................................... ......................20 Water Resource and Planning Division.................................................................21 FinancialHighlights...............................................................................................24 Appendices A. Utility Statistics B. Capital Improvement Program C. Acronyms and Glossary TOWN OF ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT APRIL 2017 ORO VALLEY TOWN COUNCIL Satish I. Hiremath, D.D.S., Mayor Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Pina, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember ORO VALLEY WATER UTILITY COMMISSION Anne Campbell, Chair Robert Milkey, Vice Chair Chuck Hollingsworth, Commissioner Thomas Kibler, Commissioner Bill Leedy, Commissioner Byron McMillan, Commissioner Winston Tustison, Commissioner TOWN STAFF Daniel Sharp, Interim Town Manager Philip C. Saletta, P.E., Water Utility Director Peter Abraham, P.E., Water Resources and Planning Manager Shirley Kiel, Water Utility Administrator Special recognition to OVWU staff that provided graphics, data, photos and their time to assist in the preparation of this report: Kam Boyce George Kendrick Adam Pence Robert Jacklitch Mary C. Kobida Carolyn Schneider Jeff Kane Mark Moore Danielle Tanner Louis Valencia 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 Valley Water Utility Commission (Commission) to act as their advisory body. Please refer to Town Code —Water Code —Article 15-4 on the Town website at http://www.codepublishing.com/AZ/OroValley/ The Commission is composed of seven members that serve a term of three years and are limited to a maximum of two full successive terms. Commission members represent residential and commercial/turf interests served by the utility. The primary responsibility of the Commission is to review and make recommendations on those Water Utility items that require Mayor and Council action. These items may include water system development, long-term water sources, capital needs, rate adjustments, capital budget and allocations, state and federal legislation regarding water -related issues, expansion of utility service areas, and water acquisitions. The Commission also assists in community programs and education related to the Water Utility. The Commission welcomes the public to attend its meetings. The Commission meets the second Monday of each month. All meetings are noticed on the Town's website. In 2016, the Commission met on 10 occasions. Notable actions taken by the Commission in 2016 include: Meeting Date Action Item April 11, 2016 Election of Chair and Vice Chair April 11, 2016 Approval of and recommendation for acceptance of the Annual Report June 13 2016 Recommendation to approve agreement with Town of Oro Valley and ' EnerNOC to enroll in TEP Demand Response Program May 9 2016 y Recommendation for Conservation Subcommittee to review water code changes pertaining to conservation and water wasting October 10 2016 ' Recommendation for Amendment to reclaimed water IGA with City of Tucson November 14 2016 Recommendation to approve Notice of Intent to increase water rates per the ' preferred scenario in the Water Rates Analysis report -1- Additional notable items that were on Commission agendas in 2016 include: ➢ Long-term storage credits ➢ Arizona Power Authority Hoover Power Reallocation ➢ IGA for CAP water wheeling with City of Tucson ➢ NorthWest Recharge and Recovery Delivery System ➢ Water policies and code ➢ Capital projects and 15-Year Capital Projects program ➢ Lower Colorado River Drought Contingency Plan ➢ Water supply and delivery ➢ Colorado River and Central Arizona Project water ➢ Your Voice, Our Future ➢ Water quality Notable issues planned for Commission agendas in 2017 include: ➢ Review of IGA for wheeling CAP water through Tucson Water ➢ Review of IGA for Recharge and Recovery Delivery system for CAP water delivery ➢ Review and approval of Annual Report ➢ Review water code changes pertaining to water conservation and penalties ➢ Review Drought Preparedness Plan ➢ Review annual water level data and aquifer metrics, well analysis and condition ➢ Review of water rates analysis and developing a Preferred Financial Scenario In addition to the regular Commission meetings, there are meetings conducted by three standing subcommittees: the Finance Subcommittee, the Conservation Subcommittee and the Water Resources Subcommittee. In 2016, the subcommittee membership was as follows: Conservation Subcommittee: Anne Campbell and Thomas Kibler Finance Subcommittee: Winston Tustison and Javier Arriaga Water Resources Subcommittee: Robert Milkey and Shanna Weagle The Commission and staff would like to thank and acknowledge Javier Arriaga and Shanna Weagle for their dedication and service on the Water Utility Commission through December 2016. IMM I WATER UTILITY COMMISSION 2017 Anne Campbell Chair Chuck Hollingsworth Commissioner Byron McMillan Commissioner A Zi 12 Robert M i 1 key Vice Chair Thomas Kibler Commissioner -3- Bill Leedy commissioner f Winston Tusti on Commissioner EXECUTIVE SUMMARY TOWN OF ORO VALLEY WATER UTILITY COMMISSION ANNUAL REPORT APRIL 2017 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 (Water Utility). The report includes topics on customer service, water quality, water supply, water resource planning, conservation, capital improvements, finance and rates. This report covers information and activities primarily for calendar year 2016 ending December 31, 2016 with some information reported for fiscal year (FY) ending June 30, 2016. The body of this report focuses on the Water Utility, noting key metrics, changes from previous years and current topics. CUSTOMER SERVICE AND METER OPERATIONS In 2016, the Water Utility experienced a 1 % growth rate in customer connections, with 192 new meters installed. At the end of 2016, the Water Utility had 19,456 customer connections serving a population of 43,606. The Water Utility delivered and billed for 3.029 billion gallons (9,304 acre feet) of water, of that 2.34 billion gallons (7,190 acre feet) were potable and 689 million gallons (2,114 acre feet) were reclaimed water. Water Utility revenues totaled $15.78 million. In 2016, the meter operations team completed the Advanced Metering Infrastructure (AMI) project and meter replacement program. WATER QUALITY In 2016, the Water Utility received 4,191 analytical results for required water sampling and operational data. The water system is in compliance with Arizona Department of Environmental Quality requirements. CURRENT WATER SUPPLY AND WATER RESOURCE PLANNING The Water Utility operates two water systems, the Oro Valley Water Service Area (OVWSA) and the Countryside Water Service Area (CSWSA). There are three sources of supply: groundwater, Central Arizona Project (CAP) water and reclaimed water. Groundwater is pumped from our wells in the aquifer below the water service areas, blended with CAP water and then delivered through the potable drinking water distribution systems. The reclaimed water is used for irrigation and is predominantly used for irrigation of the golf courses and athletic fields. The potable drinking water system is totally separate from the reclaimed water system. In 2016, the total water produced and delivered to both service areas was 9,502 acre-feet (3.096 billion gallons). The Water Utility pumped 5,241 acre feet (1.71 billion gallons) of groundwater, delivered 2,067 acre feet (674 million gallons) of CAP water and delivered 2,194 acre-feet (715 million gallons) of reclaimed water. Groundwater levels in the OVWSA declined an average of 0.5 feet and in the CSWSA rose an average of 0.2 feet. -4- The Water Utility uses CAP water in three ways: to recharge and recover for delivery to the water system, to annually recharge and replace water produced from our wells, and to store water for future use. As of December 31, 2016 a total of 16,557 acre feet are in our long- term storage credit account and the total in our Groundwater Allowance Account was 18,374 acre feet. In the future, if our CAP water deliveries are reduced, the Water Utility plans to use our storage credits and also CAP water that has been stored by the Arizona Water Banking Authority. WATER CONSERVATION The Water Utility primarily encourages water conservation by informing and educating our customers. Specifically in 2016, the following conservation efforts were accomplished: • 605 students participated in Conservation Kids program in Oro Valley elementary schools. • 56 customer water audits were performed to help our customers reduce water use. • AquaHawk Alerting is now available to all customers to better manage their water use and for early leak detection. • Community outreach includes providing water conservation information in pamphlets and brochures, making presentations at homeowner associations and participating at community events. WATER UTILITY OPERATIONS Production and Distribution operate 24 hours per day, 365 days per year to deliver water to our customers. In 2016, staff responded to after-hours calls totaling 615 work hours. Routine maintenance of 20 wells, 25 booster stations, 18 water storage tanks and 971 water valves was performed. Maintenance or replacement of 51 fire hydrants, 26 pressure reducing valves and 93 air relief valves was conducted. The Water Utility updated the security program, Emergency Response Plan, and the Business Continuity Plan. The Water Utility inspected and approved 11 new development projects and 4 capital projects. These projects added 4 miles of pipeline for a total of 359 miles of pipeline in the potable water distribution system. FINANCIAL HIGHLIGHTS, WATER RATES AND FEES The Water Utility continues to be fiscally sound and met all revenue requirements, exceeded the debt service coverage ratio requirements and maintained adequate cash reserves. In November of 2016, recommendations regarding water rates, fees and charges were provided in the Water Rates Analysis Report. The recommendations included a slight increase in the water base rates and commodity rates. The increases in water rates were approved by Mayor and Council on February 15, 2017. In conclusion, the Oro Valley Water Utility Commission is proud to serve the Mayor and Council of the Town of Oro Valley and its residents and customers. Additional information for the Water Utility can also be found on the Town website at https://www. orovalleyaz.gov/town/departments/water-utility -5- WATER UTILITY COMMISSION ANNUAL REPORT CUSTOMER SERVICE Customer service responsibilities range from handling payments to responding to questions related to billing, opening or closing an account, water quality or pressure and flow problems. Providing professional and courteous service is paramount to the successful operations of the Water Utility. Customer Service personnel include Customer Service Specialists and Utility Operators. This staff is responsible for meter accuracy, meter installation, billing, collection and customer service for 19,456 water service connections serving 43,606 residents. The Utility has grown in water service connections over the past year and in 2016 an additional 192 meters were installed for a growth rate of 1 %. In 2016 the Water Utility delivered: • 2.34 billion gallons (7,190 acre feet) of potable water • 689 million gallons (2,114 acre feet) of reclaimed water for irrigation to five golf courses and athletic fields at Naranja Park and one school. • Combined total of 3.029 billion gallons (9,304 acre feet) of water delivered to our customers. This amount is 163 million gallons (509 acre-feet) more than the 2015 amount. The Customer Service Section mailed and processed 230,359 bills and responded to 36,007 customer contacts averaging 145 contacts per day. Customer Service generates monthly bills for the Water Utility, Pima County Regional Wastewater Reclamation Department and the Town's Storm Water Utility. Although customers receive a combined bill, the Water Utility is separate from Pima County Wastewater and the Oro Valley Stormwater Utility. The Water Utility bills and collects for those entities under existing agreements. In 2016, the Utility collected a total of $25,455,000 and posted payments as follows: • Oro Valley Water Utility $ 15,78000 • Pima County Wastewater Reclamation $ 07700 • Town of Oro Valley Stormwater Utility $ 99800 The Water Utility receives all of its revenues from water rates and fees and does not receive any funding from taxes. The Water Utility collects taxes on water use but those taxes are distributed to the State of Arizona and the Town of Oro Valley. The Advanced Metering Infrastructure (AMI) project is a valuable tool that enables Customer Service staff to view customer consumption data and accurately determine high water use on their computers while communicating directly with the customer in person or on the telephone. Lost and unaccounted for water is the amount of water that is produced less the amount of water billed and not billed but accounted for. Since the installation of AMI, the lost and unaccounted for water has decreased in recent years. In 2016, lost and unaccounted for water was 0.48%. I M AquaHawk Alerting, a customer web portal launched in 2013, utilizes data gathered through AMI. Once a customer is enrolled in this on-line service, they are able to view their individual water use on an hourly, daily, weekly or monthly basis. Customers can tailor personal notifications based on their individual preferences and receive alerts by e-mail, text or telephone. Over 4,367 customers have enrolled in AquaHawk Alerting since 2014. Water Utility statistics including meter installations, the number of customer contacts, and water deliveries for 2016 may be found in Appendix A. METER OPERATIONS During 2016, the meter operations team completed the final phase of the Advanced Metering Infrastructure (AMI) project and meter replacement program in the Oro Valley Water service area. To facilitate completion of phase IV, meter operations staff worked diligently to change out commercial and irrigation meters that were not part of the original scope of work. Staff planned shutdowns and coordinated with businesses to minimize any disruption to the business and their customers. AMI systems are becoming an integral part of water utilities and transforming the way water departments read customer meters, interact with customers and manage water data. The AMI system has improved customer service by providing immediate on -site water usage data to the customer to explain a problem such as a water leak. This saves our customers water and money. Water Utility staff have increased their technical knowledge and skills to provide this improved customer service. The staff use strong analytical and critical thinking skills to analyze and troubleshoot complex metering problems and technical issues within the AMI system. Staff use AMI network software, Meter Data Management software, field collection and meter reading hardware/software, Geographic Information System software and data collection software to develop solutions to solve complex problems and mitigate future issues that could impact water 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 including proactively monitoring and maintaining the AMI system, providing instruction and insight for electronic equipment installations, programming, maintenance, repairs and troubleshooting. Meter operations staff will focus their efforts to improve operational efficiencies to perform additional preventive maintenance and commercial meter testing. MR WATER QUALITY Water quality sampling and testing is an important priority to provide our customers with safe and reliable water. The Town's water system is in full compliance with all State and Federal regulations. The Water Utility is regulated by the Arizona Department of Environmental Quality (ADEQ) and provides all required water quality testing results to ADEQ. The Water Utility works closely with ADEQ to ensure all Federal and State standards are met. The website for ADEQ is www.azdeq.gov. The Water Utility operates two separate potable water systems. The Oro Valley Water Service Area has a Public Water System Number of AZ0410164. It also operates a potable system not located within the Town boundaries, known as the Countryside Water Service Area, which has a Public Water System Number of AZ0410175. In 2016, the Water Utility received 4,191 analytical results for required water sampling and operational data for the potable water system and all ADEQ requirements were met. Over the course of a year the Water Utility collects hundreds of water samples from 17 "point of entry" sites. These sites include groundwater wells, reservoirs and pumping stations. The Water Utility also samples from 58 sampling stations required by the ADEQ. These stations are located in neighborhoods throughout the water distribution system and are specifically selected to represent the water quality that is delivered to our customers. The Water Utility has an additional 74 sampling stations that can be used during emergencies and to meet future testing requirements. Every 3 years, water samples are taken from 50 private residences within the Oro Valley area and tested for lead and copper. This sampling was completed in June of 2016. The Water 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 2016 the Water 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. Water hardness is also tested and is a measurement of the concentration of calcium and magnesium. During 2016, the hardness levels in Oro Valley ranged from 3.0 to 14.0 grains per gallon (49 ppm to 240 ppm). Our water hardness ranges from soft to very hard. The Water Utility is in compliance with all Disinfectants and Disinfection By -Products Rules and also meets the Groundwater Rule requirement for disinfection and the United States Environmental Protection Agency's (USEPA or EPA) rules for lead and copper. Due to proposed regulatory changes and requirements, in 2016 the Water Utility continued preparing to phase in six proposed and pending USEPA regulations related to monitoring rules: • Revised Total Coliform Rule April 2016 • Fourth Unregulated Contaminant Monitoring Rule January 2016 • Revised Long -Term Lead and Copper Rule January 2017 • Carcinogenic Volatile Organic Chemicals Rule 2018 • Strontium 2018 • Epichlorohydrin and Acrylamide TBD i -1 In 2017, the Water Utility will continue to phase in sampling and monitoring in accordance with regulatory requirements. The Water Utility produced the Consumer Confidence Report for 2015 for both water service areas in April of 2016. These reports were made available electronically and notices mailed to customers in April of 2016 and can be found on the Town's website under the Water Utility -Water Quality. The 2016 Consumer Confidence Reports will be completed in January and February of 2017. 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 2016. BACKFLOW PREVENTION PROGRAM Backflow prevention is an important component of water quality designed to protect the public water system. This program works to keep the water supply safe from contaminants that could be introduced into the distribution system through backflow, back siphoning or back pressure from our customers plumbing systems or internal processes. The Backflow Prevention Program is administered in accordance with the Town of Oro Valley Ordinance No. (0) 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 1,583 backflow prevention assemblies under the program that are located in our water service areas. The following are some of the major activities and accomplishments that were performed by the Backflow Prevention Section in 2016: ➢ 208 backflow assemblies owned by the Town were tested by the Town of Oro Valley Water Quality/Backflow Section ➢ 58 repairs on in -ground and construction water backflow prevention assemblies ➢ 42 permits for new and replacement backflow prevention assemblies CURRENT WATER SUPPLY F The Water Utility operates in two water service areas: the Oro Valley Water Service Area (OVWSA) and the Countryside Water Service Area (CSWSA). The total water produced and delivered to both service areas was 9,502 acre feet in 2016. In 2016, the Water Utility pumped 5,241 acre feet of groundwater from our wells and aquifer, produced 2,067 acre feet of CAP water and produced 2,194 acre feet of reclaimed water. This total amount of water production is 317 acre feet more than the total amount of water production in 2015. This increase is possibly due to customer response to hotter and dryer weather conditions as well as the Water Utility realizing the additional consumption due to service units added in 2015. The following graph shows total water production from 2005 through 2016. The components of total water production include 1) groundwater production for both service areas, 2) CAP utilization for both service areas, and 3) reclaimed water utilization. The graph depicts an increase in overall water production for 2016 vs. 2015. 12,000 10,000 8.1000 41000 2f000 0 WATER PRODUCTION -ANNUAL COMPARISONS 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CALENDAR YEAR MI1IE 12oOOO t7R0 VALLEY 2s000 GROUNDWATER 0 The graph on the previous page includes the groundwater target maximums for each service area. These amounts were determined in a technical memorandum entitled Groundwater Sustainability Evaluation of the Oro Valley Aquifer dated March 14, 2007. In general, the report determined that the annual groundwater production flow rate for the wells in the OVWSA is 5,480 acre feet, and 880 acre feet for the wells in the in the CSWSA. The wells in the OVWSA produced 4,768 acre feet and the wells in the CSWSA produced 473 acre feet. This is 241 acre feet more in the OVWSA and 45 acre feet less in the CSWSA as compared to the amount of groundwater pumped from our wells in 2015. The table below provides the total water delivery capacity flowrates and water demands for both water service areas for 2016 and compares it to data from 2015. The maximum daily usage occurred on June 7, 2016 for the OVWSA and on June 5, 2016 for the CSWSA. x D = Million Gallons ]Day ,.1 The Water Utility has a right to pump a maximum of 13,384 acre feet per year based on its Designation of Assured Water Supply from the Arizona Department of Water Resources 'j (ADWR). However, the 2007 study entitled Groundwater Sustainability Evaluation of the J Oro Valley Aquifer determined that the Oro Valley aquifer has a sustainable groundwater production rate of approximately 5,480 acre feet per year for the OVWSA and 880 for the CSWSA. "Sustainable" in this 2007 study refers to the projected amount that can be pumped each year from our wells as calculated over a 3 0 -year period through 2037. At this time, the Water Utility has established the 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 to stay below this groundwater target maximum. Groundwater levels will be assessed annually to determine the impact on the aquifer and well production. Groundwater levels are showing less decline than projected in the 2007 study. In 2016, Oro Valley pumped 712 acre feet less than the groundwater target maximum production rate for the OVWSA wells and 407 acre feet less than the target maximum production rate for the CSWSA wells. In the OVWSA, the average annual well water level decline for the last 5 years is 1.4 feet and for 2016 there was an average well water level decline of 0.5 feet. For wells in the CSWSA, the average annual well water level rise for the last 5 years is 0.20 feet and for 2016 there was an average well water level rise of 0.20 feet. For all wells, water level changes in 2016 varied from a rise of 4.8 feet to a decline of 3.4 feet. 11- The following table lists all production wells, the amount of groundwater pumped and their water level changes as measured in January of 2017: - -1.4 - .7 -1. C-6 4 - .4 - . -1.7 C-8 2z -.2 -1 .3 -.7 C-9 404 - . -14.5 - 2 .' D-1 0.1 -1.0 - ./- D-4 35 0.5 -1 . - .4 D-6 253 4.8 0.8 0. D-7 204 - .1 - . - . D- -0. -17. - .6 D-9 44 -2.5 -7. -1. E-1B 365 0.4 10.1 2. E-2 328 3.0 -0. -0.2 E-3 100 0.1 -8.5 -1.7 E- B 214 -1.5 2.9 0.6 E- B 20 -1.4 -4.7 - .9 E-7B 287 -0.2 -7.8 -1. F-1 509 2. -2. -0.5 Average -0.5 -6.8 -1.4 The Water Utility delivered 2,067 acre feet of our renewable CAP water resources in 2016 to reduce our reliance on groundwater. The Water Utility has an IGA with Tucson Water enabling us to deliver our CAP water to our customers through three connections to the Tucson Water system. There are two connection points where CAP water can be delivered to the Oro Valley Water Service Area. One is located on Vista del Sol north of Naranja Road and the other is on Calle Buena Vista south of Calle Concordia. In 2016, at the Vista del Sol location 1,637 acre feet was delivered and at the Calle Buena Vista location 242 acre feet was delivered. -12- CAP water is also delivered to the Countryside Water Service Area at a connection located on Camino de Oeste just north of Linda Vista Blvd. At this location, 188 acre feet of our CAP water was delivered in 2016. At this point, there is no infrastructure currently in place to directly use the remaining amount of our CAP water. Future infrastructure to deliver additional amounts of our CAP water to our customers will be developed based upon our water demands, aquifer conditions and new growth. If growth continues as projected, an additional delivery system is expected to be completed in 2023. The Water Utility has an intergovernmental agreement (IGA) with Tucson Water to deliver our reclaimed water. Tucson Water delivers our reclaimed water to their facility at Thorndale and Tangerine. From that location Oro Valley Water Utility independently operates the pipeline and water distribution system that delivers our reclaimed water to our reclaimed water customers in the Oro Valley Water Service Area. There is no reclaimed water delivered to the Countryside Water Service Area. The Water Utility delivers reclaimed water to supply irrigation water for five golf courses, athletic fields at one elementary school and Naranj a Park. The Water Utility delivered 2,114 acre feet of reclaimed water to our reclaimed water customers in 2016. This is a very small increase from the 2,111 acre feet delivered in 2015. Reclaimed water is produced from wastewater effluent from the sanitary sewer system and the wastewater treatment plant and then treated for irrigation use. Oro Valley owns all of the effluent produced by its customers. In the long term, there is the possibility of expanding the Water Utility's reclaimed water system. However, reclaimed system expansion is not expected to occur in the next seven or more years. The development of additional reclaimed water infrastructure will be based upon need, benefit, wastewater effluent availability, technical analysis and economic feasibility. Gallons per Capita per Day The Water Utility has calculated gallons per capita per day (GPCD) for residential use, all potable uses and reclaimed water use. The GPCD for residential use is information that our customers can use to compare to their specific water usage and to conserve water. All potable uses include residential, commercial and irrigation. Total potable and reclaimed uses includes all potable and reclaimed water produced and system losses. The following table compares this for 2015 and 2016. Gallons per Capita per Day (GPCD) - 13 - WATER RESOURCE PLANNING AND MANAGEMENT State Requirements The Arizona Department of Water Resources (ADWR) requires the replacement of groundwater pumped from wells owned and operated by the Water Utility. To comply with this requirement the groundwater pumped is replaced through the use of our recovery wells and use of our annual recharge of renewable Central Arizona Project (CAP) water. We can also replace groundwater with our long-term storage credits. This replacement maintains compliance with ADWR requirements. Under our Designation of Assured Water Supply (DAWS) from ADWR, we are required to comply with the Fourth Management Plan in the Tucson Active Management Area. In 2016, we were in compliance with all the requirements under our DAWS and fully expect to meet all the requirements in 2017. The ADWR requires the Water Utility to submit water system information and water usage data each year in an annual report. The provided information includes service area boundaries, total water use, population, gallons per capita per day and system water loss. Central Arizona Project Water In 2016, the Water Utility purchased all 10,305 acre-feet of its renewable CAP water allocation. The Water Utility uses CAP water in three ways: to recharge and recover for delivery to the water system, to annually recharge and replace water pumped from our wells and to store water for future use. The Water Utility accomplishes this by delivering and storing our CAP water to recharge facilities in the Tucson Active Management Area. For example, when CAP water is recharged and recovered for delivery to our water system, it is first put into the Central Avra Valley storage facility, which is owned and operated by the City of Tucson. The stored Oro Valley CAP water is then withdrawn, or recovered, and delivered through the Tucson Water system to various connection points on the Oro Valley system for delivery to our customers. In 2017, the Water Utility will continue to evaluate projects to deliver additional CAP water. These include increased wheeling through Tucson Water and also partnering with Metro Water and Marana Utilities. Future infrastructure to deliver our remaining CAP water will be developed based upon our water demands, aquifer conditions and new growth. Long -Term Storage Credits In 2016, the Water Utility purchased 10,305 acre feet of CAP water for delivery to recharge facilities. The Utility will increase its long-term storage credits by continuing to purchase our entire allotment of 10,305 acre feet of CAP water over the next several years. The portion of CAP water not used for direct delivery to our customers or used to meet our replenishment requirement will be saved for future water use. By doing this, it is anticipated that an additional 10,000 acre feet could be stored in our long-term storage credit accounts over the next four to five years. At the end of 2016, the Water Utility calculated that it had 16,557 acre feet in long-term storage credits. The final amount will be reviewed and confirmed by the Arizona Department of Water Resources. -14- The table below presents a preliminary accounting summary and use of our CAP water and our long-term storage credits. Water Storage Summare Calendar year 2016 (Acre -Ft.) Groundwater Allowance Account In addition to our long-term storage credits, the Water Utility has a Groundwater Allowance Account. Our Groundwater Allowance Account states how much pumped groundwater can, if desired, be exempted from the state's requirement for replenishment in the Tucson Active Management Area. In general, it may be used for any groundwater that is pumped from a well that has a five-year average annual decline greater than 4 feet or from a well that is not permitted as a recovery well. In 2016, there was no use of the groundwater in our Groundwater Allowance Account. This is because all of the Water Utility's wells are classified and permitted as recovery wells and storage credits can be used to meet the replacement requirements instead of using our Groundwater Allowance Account. In 2016, the Water Utility purchased an additional 2,000 acre feet of groundwater extinguishment credits to increase the balance in our Groundwater Allowance Account to a total of 19,130 acre feet in 2016. The Water Utility will continue to look for opportunities to purchase additional groundwater � extinguishment credits to increase the balance in our Groundwater Allowance Account for future use. Colorado River Water Supply The Colorado River basin has experienced extended drought for nearly 15 years due to decreased precipitation and snowpack. This has decreased flow in the river creating significant declines in the water levels in Lake Mead and Lake Powell and dropping to historically low reservoir levels. Water demands have exceeded available inflows for supply driving reservoir levels lower. These reservoirs supply water to the CAP and other water projects in the lower basin states of Arizona, California and Nevada. In addition, these reservoirs also provide required water deliveries to Mexico. Reservoir levels determine the supply available in accordance with shortage guidelines -1 which were approved in 2007 by the Secretary of the Interior and accepted by all seven states within the Colorado River basin. Those guidelines specify three different -15- water levels in Lake Mead associated with Tier 1, Tier 2, and Tier 3 shortages. In addition, the guidelines specify the shortage sharing and associated reductions of deliveries to each state for each of the tiers. A Tier 1 shortage will not reduce the quantity of CAP water delivered to municipal water providers, such as Oro Valley, within the Central Arizona Project. However, CAP water deliveries to agricultural users, the Central Arizona Groundwater Replenishment District (CAGRD) and the Arizona Water Banking Authority will be curtailed. In accordance with the 2007 guidelines, a Tier 1 shortage will be declared when Lake Mead water levels are predicted to be at an elevation of 1,075 feet or less on January 1 of a given year. If the August model prediction projects a shortage for January 1 of the following year, a declaration of shortage would be declared initiating the implementation of the shortage sharing guidelines for that year. As of the end of January 2017, levels in Lake Mead were at 1,086 feet. Based upon recent August, 2016 model projections, The United States Bureau of Reclamation estimates a 48 percent chance of a Tier 1 shortage impacting CAP agricultural water users and excess CAP water users beginning January 1, 2018. The 2007 shortage sharing guidelines also outline further reductions in delivery of Colorado River water to the lower basin states if and when higher -tier shortages are declared. Any further reductions of CAP water deliveries that may be curtailed to municipal water users would be replaced with CAP water previously stored underground. The Arizona Water Banking Authority (AWBA) has been storing water underground for municipal and industrial water users to guard against the impacts of drought and shortage. Over 500,000 acre feet of water has been stored underground by AWBA in the Tucson Active Management Area. This stored water will be made available to municipal water providers to mitigate any 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. Oro Valley Water Utility also continues to store its CAP water and build up its long-term storage credits. This water will also be available to mitigate any curtailments of CAP water deliveries in the future. The Arizona Department of Water Resources and the CAP are currently in discussions with the Colorado River Basin states to develop a Drought Contingency Plan to investigate opportunities to keep water in Lake Mead to prevent a shortage from occurring or reduce the amount of a potential shortage. The above actions combined with a diverse water portfolio can reduce the impacts of drought and shortages. In addition, reducing demands through conservation and better water management will help to preserve water supplies for the future. -16- WATER CONSERVATION PROGRAM The Water Conservation Program is an important element in the overall water resource management efforts of the Water Utility. The Water Utility's conservation program is focused on educating and informing customers. The following are resources that the Water Utility continues to provide at no charge to customers: • AquaHawk Alerting - allows customers to monitor their water use and receive alerts for high or unusual water use. Over 4,300 customers have registered for AquaHawk Alerting since 2014. • The Water Utility conducted training sessions in 2016 to increase AquaHawk Alerting enrollment and plans to expand outreach efforts to increase enrollment in 2017. • Conservation Kids, our youth water conservation education program - a one -session early elementary educational presentation with take-home booklet. In the 2015-2016 school year, 605 students in 2nd and 3rd grades were reached by this program. • Community outreach - Water Utility staff go out into the community for speaking engagements, water conservation program presentations at homeowner associations and participate in other events. In 2016, staff attended 5 of these outreach efforts. • Conservation materials - informational pamphlets, booklets, and newsletters are distributed in the Water Utility's office and in the Oro Valley Public Library. • Conservation products - irrigation rain sensors are provided at a reduced cost and low -flow shower heads and sink aerators are provided at no cost to customers. In 2016, the Water Utility distributed approximately 100 products. • Water audit - a visit from our Water Conservation Specialist to assess indoor and outdoor water use for ways to increase efficiencies and conserve water. An analysis performed by staff in 2016 indicates a 16% decrease in water use for those customer locations where water audits were conducted in 2015. In 2016, a total of 56 audits were performed. The reduction in water audits may be a result of the implementation of AMI. With the use of AMI technology, conservation staff proactively monitor continuous water use on a daily basis and notify customers of suspected leaks to save our customers money and water. -17- WATER UTILITY OPERATIONS - PRODUCTION AND DISTRIBUTION All Production Division and Distribution Division personnel are operators licensed and certified by the ADEQ. The Oro Valley Water system (OVWSA) is classified by ADEQ as Grade 4 for the Town of Oro Valley water distribution system (AZ0410164) and Grade 2 for the Countryside (CSWSA) water distribution system (AZ0410175). For more information please visit the ADEQ website at www.azdeq.gov or the EPA website at https://www3.epa.gov/enviro/facts/sdwis/search.html. Production and Distribution personnel work together to address any water system problems. The Production and Distribution Divisions also provide on -call staffing to respond to water system problems 24 hours per day, 7 days per week. This on -call staffing utilizes a tiered - level after-hours response protocol that is in accordance with the developed Emergency Response Plan. Production Division Water Utility personnel in the Production Division are responsible for the operation and maintenance of the wells, booster pumps and reservoirs on two potable water distribution systems. In addition, Production is responsible for the booster pumps, metering stations and reservoir on the reclaimed water delivery system. There are a total of 47 active sites maintained by Production Facilities staff. In 2016, the groundwater production capacity within the OVWSA was 13.08 million gallons per day (MGD) (9,080 gpm) with a storage capacity of 10.98 million gallons. The groundwater production capacity within the CSWSA was 2.15 MGD (1,493 gpm) with a storage capacity of 0.90 million gallons. The CAP delivery capacity into the OVWSA system in 2016 averaged 1.609 MGD (1117 gpm). The CAP delivery capacity into the CSWSA system averaged 0.156 MGD (10 8 gpm). The following are some of the major activities and accomplishments of the Production Facilities Division in 2016: ➢ Sustained sanitary system operations on systems AZ0410164 and AZ0410175. ➢ Upheld operational balance for CAP water delivery to the 10 -164 and 10-175 systems. ➢ Maintained 23 disinfection injection pumps and disinfection residuals at injection points on systems AZ0410164, AZ0410175, and the reclaimed water delivery system. ➢ Performed routine mechanical and electrical maintenance at 20 wells, 25 booster stations and 18 storage tanks. ➢ Responded to after-hours situations which totaled 453 work hours. ➢ Completed 816 assigned work orders including electrical. ➢ Assisted with six reservoir exterior and interior inspections/cleaning. ➢ Performed the annual groundwater level survey and prepared the report. ➢ Competently operated the potable and reclaimed systems utilizing the SCADA system. ➢ Performed Industrial Control System maintenance on 48 Remote Terminal Units, two Master Controllers, two Human Machine Interfaces, and one Network Server. ➢ Performed RSLogix 500 program modifications and FactoryTalk View graphics interface modifications on two HMI's as needed. ➢ Performed mechanical and general maintenance at 5 metering stations, two booster stations, and one reservoir on the reclaimed water delivery system. -18- Distribution Division As of December 2016, Water Utility personnel in the Distribution Division are responsible for the operation and maintenance of 358.97 miles of potable water mains, 13.86 miles of reclaimed water mains for a combined total of 372.83 miles of water mains. There are 2,223 fire hydrants and 8,078 valves, 26 pressure reducing valves, 859 air relief valves and 902 drain valve assemblies, on the water distribution system. Maintenance and replacement of hydrants; pressure reducing valves, and air release valves are collected in a database under our preventive maintenance program. The Distribution Division staff also has significant direct customer contact and courteously respond to customers regarding water quality and pressure or flow related problems. The Distribution staff has the responsibility to repair main line and service line breaks. Distribution staff are also responsible for blue -staking all underground water mains for construction projects. The following are some of the major activities and accomplishments that were performed by the Distribution Facilities Division in 2016: ➢ Responded to 245 customer inquiries and 162 after hour call outs. ➢ Responded to and repaired 9 water pipeline breaks and 3 water service line breaks. ➢ Maintained 971 water valves, replaced 5 valves and performed 5 valve adjustments. ➢ Maintained, replaced and/or repaired 51 fire hydrants and flow tested 59 fire hydrants. ➢ Performed 104 tests, maintenance and/or repairs on 26 pressure reducing valves. ➢ Maintained, replaced and/or repaired 93 air relief valves and 7 drain valve assemblies. ➢ Performed 11,190 blue -stakes for underground pipeline and facilities locations. ➢ Installed 56 new hydrant defenders. Oro Valley Water Utility Construction Equipment -19- 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, water operators also have a public safety responsibility with relevance to the water systems they are charged with operating. Any facilities security situations also directly involve the Oro Valley Police Department as a first response action. In 2016, Water Utility personnel, with the assistance of a security consultant, reviewed, refined and updated the security program, Emergency Response Plan (ERP), and the Business Continuity Plan (BCP). A series of training classes and exercises were made available and completed by the Water Utility Staff. This training is done on an annual basis as per the guidelines from the Department of Homeland Security, Federal Emergency Management Agency and the Environmental Protection Agency. The Water Utility will continue to implement the elements defined in the vulnerability assessment, the ERP and the BCP as well as those that may be identified through the course of business. The hydrant lock program continues to be implemented through the new development process to protect hydrants from illegal entry and unauthorized use. In 2016, The Water Utility staff installed 56 new hydrant defenders and locks were installed. Security features, which include perimeter fencing, security walls, warning signage, motion sensors, and cameras at all active production facilities, were inspected to maintain integrity. The Water Utility is kept abreast of local, regional and national security issues by the Water Information Sharing and Analysis Center and is also a member of the Arizona Water/Wastewater Agency Response Network which mutually cooperates with other water and wastewater providers in an emergency. - 20 - WATER RESOURCES AND PLANNING DIVISION The Water Resources and Planning Division is responsible for water resource planning and planning and managing the design, construction and inspection of all new water infrastructures for the Town of Oro Valley. Water Resources and Planning is 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 operations, planning and engineering. In 2016, the New Development Section within Water Resources and Planning reviewed and approved 13 water improvement plans submitted by developers for construction. In addition, 11 plans, some of which were approved in a previous year, were constructed, inspected, approved as -built and placed into service. The completion of these new development projects together with capital projects added approximately 4 additional miles of pipeline to the existing potable water distribution system. In 2016, our inspectors also inspected and approved 4 Water Utility capital projects constructed by a contractor. CAPITAL PROJECTS The Water Resources and Planning Division manages the design and construction of capital projects identified in the capital improvement program and annual operating budget. These J projects are designed to improve efficiencies to existing facilities and improve service levels. These capital projects are described below. Design Projects 2016 J ➢ Engineering for Well E2 is 90% complete. The project design includes a new hydro - pneumatic tank, mechanical equipment, electrical control and demolition of a small storage tank and booster station. Consolidate two facilities to one facility to improve efficiency and water production. Construction will be completed in 2017. ➢ La Cholla Blvd. water main relocation design is 90% complete. La Cholla will be widened to 4 lanes from Overton to Tangerine Road. ➢ Design for Lambert Lane water main relocation is 100% complete. Lambert will be widened to 4 lanes west of La Canada Drive. The existing mains are undersized and a new 12 inch main and two pressure reducing stations will be installed. ➢ Engineering design for 3 PRV's in Oro Valley Country Club area is 100% complete. Construction will be completed in 2017. d ➢ Design for the "E to C" Pressure Sustaining Valve (PSV) is 100% complete. A new PSV will be installed at the Naranja Reservoir and associated piping. This will enhance the ability of the system to distribute blended CAP water to a broader area of the system. Construction will be completed in 2017. ➢ Design for new office space at the Production Facility Building is 90% complete. Design and construction will be completed in 2017. ➢ Design for a new Reclaim Booster Pump at the Tucson Water Thornydale site is 100% complete. Construction will be completed in 2017. ➢ Avra Valley Water Quality Study is 100% complete. -21- I ➢ Hydro -pneumatic tank Study for Booster Stations is 100% complete. The study identified the need to start a tank replacement program. A new 5,000 gallon hydro -pneumatic tank will be designed and installed at the High Mesa Booster Station in 2017. Construction Projects ➢ Installed Pressure Sustaining Valve (PSV) at Glover Reservoir for system connection upgrade. Hydro Pneumatic Tank Replacement Hydro -pneumatic tank replacement for Well D7 was completed December 2016. It is a 5,000 gallon ASME tank and NB certified. Well D7 Hydro —Pneumatic Tank Replacement Tangerine Road & ? .. 24 Inch Reclaimed Water Main Relocation -22- Future Projects: Capital improvement projects planned to be continued or initiated in FY 2017-2018 include the following: ➢ Steam Pump Replacement Well Drill Only ➢ Well E2 Facility Upgrades ➢ Hydro -pneumatic Tank Replacement — Well D8 ➢ Main Valve Replacement ➢ W. Lambert Lane 12-Inch Main Relocation ➢ Hydro pneumatic Tank Replacement — High Mesa Booster Station ➢ WP 4 Reservoir Coating ➢ OV Community Recreation Center Main Replacement ➢ Rancho Feliz Drain Valve Assembly Replacement ➢ Countryside Drain Valve Assembly Replacement ➢ Rancho Verde Hydrants ➢ La Cholla - Lambert to Tangerine Main Relocation ➢ Install five additional mixers in water tanks for improved water quality The capital projects for existing system improvements FY 2017-18 are planned to be cash J funded. It is proposed that projects in future years will be cash funded and/or debt financed through loan or bond proceeds. 1 Please see Appendix B for the proposed 15-Year Capital Project Program for FY 2017 through J FY 2032. - 23 - FINANCIAL HIGHLIGHTS The Water Utility is financially sound and continues to manage its revenues, control expenditures and reduce debt. In 2016, the Water Utility's bond ratings were reviewed by Fitch Ratings who affirmed our AA- rating with a stable outlook. 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 maintaining an adequate cash reserve balance. The Water Utility and Finance Department will continue to review outstanding bonds to look for opportunities to reduce debt. Revenues and Expenditures The Water 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 Water Utility has three funds: ➢ The Operating Fund provides funding for the Water Utility administration and operations existing system improvements and debt service payments. The sources of revenue for this fund are water sales, service related charges and the 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 for 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. -24- I 7 1 The following table contains the actual revenue billed for FY 2015-16 for all funds within the Water Utility: Revenue Source Amount Billed FY 15-16) Potable Water Sales: Residential $ 8,008,880 Commercial $ 765,627 Irrigation $ 110591754 Turf $ 127,446 Construction $ 3 01, 824 Reclaimed Water Sales: Turf $ 1,508,275 Construction $ 506 Irrigation $ 509480 Misc. Service Fees & Charges $ 710,740 Groundwater Preservation Fees $ 253365380 Total Enterprise Fund $1498699912 Alternative Water Resources Development Impact Fees $ 1,094,460 Potable Water System Development Impact Fees $ 5441852 Interest Income — All Funds $ 203,857 Total All Funds for FY 2015-16 $1697139081 The budgeted expenditures (excluding depreciation and amortization) for the Operating Fund Jare compared to the actual expenditures for FY 2015-16 in the following table: Expenditures Budget FY 2015-16 Actual Spent FY 2015-16 Difference Under Budget Percentage Under Budget Personnel $ 3,1731022 $ 2,952,249 ( $ 220,773) 7 % O&M $ 7906%451 $ 6,3901308 ( $ 679,143) 10 % Capital $ 3,57500 $ 2,384,367 ( $15191,433) 33 % Totals $1398189273 $1197269924 ( $290919349) 15 % 14 The Water Utility's O&M expenditures were under budget for several reasons. The Utility successfully purchased 756 acre feet of extinguishment credits but was unable to purchase additional credits due to lack of availability at the time; therefore, $317,000 went unspent. Other unspent funds were related to a reduction in water use and include wheeling costs for CAP water and reclaimed water totaling $176,000 and power costs in the amount of $61,000. Capital expenditures were also less than budgeted due to some changes in project schedules and timing. J Outstanding Debt The following table is a summary of the outstanding debt and the annual debt service payments (principal and interest) for all funds within the Water Utility: Fund Bond Series Outstanding Debt At 12/31/16 Debt Service Payments FY 2016-17 Interest Rate Maturity Operating 2007 $1315625620 $ 152595936 4.5 2026 Operating (WIFA) 2008 $ 258285106 $ 316,273 3.5 2027 Operating (WIFA) 2009 $ 155859381 $ 1499275 3.2 2029 Operating 2012 $ 355735006 $ 5869716 3.6 2028 Operating 2012 $ 6,5121839 $ 15070,449 3.5 2028 Operating 2013 $ 2,99500 $ 11033,428 1.5 2019 Operating (WIFA) 2014 $ 35870,921 $ 405,961 2.7 2029 Operating 2015 $ 15244A30 $ 50,247 1.9 2025 PWSDIF 2012 $ 2M09J 55 $ 32%916 3.5 2028 Totals $3891819458 $ 592029201 Water Rates and Development Fees 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 Water Utility bases its financial analysis on the American Water Works Association Cash Needs Approach. The financial analysis for 2016 resulted in a recommendation to increase the base rates for potable water and reclaimed water customers. In addition, the recommendation included an increase in the potable water commodity rates. These changes resulted in a slight increase to monthly water bills for the majority of the Water Utility's customers. The increase was larger for higher water use residential and irrigation customers. This is consistent with conservation pricing through a tiered rate structure. The Mayor and Council approved the new rates on February 15, 2017. 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-fees - 26 - TOWN OF ORO VALLEY FUNDED Age WATER UTILITY COMMISSION 2017 ANNUAL REPORT APPENDIX A UTILITY STATISTICS YEAR Customer Base Potable Water Deliveries in Gallons Groundwater CAP water Total Potable Water Deliveries Reclaimed Water Deliveries in Gallons Bluestakes Customer Contacts Customer Service Field Operations Water Conservation -Audits Water Quality Samples Billing Collection Rate 2014 191107 2015 191264 2016 195456 1168817511000 1156112631589 13 696 7125, 955 59515351000 64819971437 64515161244 2128412861000 212107251,925 2134217411310 71815591099 65516551990 68819371000 31938 91192 111199 341387 351271 353907 51725 131520 31237 113 85 55 11350 27282 41191 98.82% 99.99% 99.99% A-1 CAP Water Deliveries in Gallons 5489997,437 66010001000 i 64010001000 59596369000 62010001000 60010001000 580,000,000 56090001000 2014 2015 A-2 2016 A-3 Bluestakes 115190 121000 95102 1 0,000 8,00 3,938 67000 4,000 � 21000 2014 2015 2015 A-4 Accounts By User Type As of December 31, 2016 IR A91 ■ Construction - 0% o Commercial - 2% ■ Residential - 96% ■ Irrigation - 2% 0 Reclaimed - 0% ■ Potable Turf - 0% Gallons Billed By User Type January - December 2016 2421471,000 197929270,000 ■ Construction - 1 E3 Commercial - 7% �,� , 7 M,� ■Residential - 59% 688,937,000 ■Irrigation - 8°r° 0 Reclaimed - 23% 77,647,000 ■ Potable Turf - 2% 201,637,000 25,082,000 Revenue By user Type January - December 2016 $8,008,880 ■Construction - 3% 13Commercial - 6% ■ Residential - 68% ■ Irrigation - 9% 0 Reclaimed - 13% $7653627 $15059,754 ■ Potable Turf - 1 % $301,824 $127,446 $ 1 ,559,261 A-5 �Ot/fYDED TOWN OF ORO VALLEY WATER UTILITY COMMISSION 2017 ANNUAL REPORT APPENDIX B PROPOSED FIFTEEN - YEAR CAPITAL IMPROVEMENT PROGRAM co fL c c c Cl) a• rr rr p CD O W Cl1 W _ W W N � W N O C° N N Cb •J N N CA Cn N N .P W N N N --� N -1 O O -� -, Cb �I -� O 0 >y Cn _ -� -� � W -� -� N -� ,0.� a1 � O 0 p1 co - Oo �t rn cn A W N -y n 0 C' *U 'a w CD 0 < ri r w p O m CD '0 N z 0 -D a CL Q. 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CD o a O r, (D TT9.0 CD 0 r-h CD Q. �4t, ,LEY 4,41 a<0 2©�� t OFOROVTOWN ALLEY WATER UTILITY COMMISSION �vNDED 2017 ANNUAL REPORT APPENDIX C ACRONYMS AND GLOSSARY ACRONYMS ACH Automated Clearing House (automatic payment program) ADEQ Arizona Department of Environmental Quality ADWR Arizona Department of Water Resources AF Acre Feet AMI Advanced Metering Infrastructure AWBA Arizona Water Banking Authority AWS Assured Water Supply AWWA American Water Works Association 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 CAWCD Central Arizona Water Conservation District CCR Consumer Confidence Reports CPP Capital Projects Program CSWSA Countryside Water Service Area CY Calendar Year DAWS Designation of Assured Water Supply EPA Environmental Protection Agency ERP Emergency Response Plan FEMA Federal Emergency Management Agency FY Fiscal Year GIS Geographic Information System GPF Groundwater Preservation Fee GPM Gallons per Minute GWA Groundwater Allowance Account IGA Intergovernmental Agreement IOC Inorganic Compound ISAC Information Sharing and Analysis Center LSCRRP Lower Santa Cruz Replenishment Project LTSC Long -Term Storage Credit MGD Million Gallons per Day MCL Maximum Contaminate Level M&I Municipal and Industrial 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 WOW Water on the Web C-1 GLOSSARY 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 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 located in the southwestern United States and northwest Mexico. The 1,450 mile (2,330 km) river drains an expansive, and 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. Developed Water Resources — Water resources and supply that are owned by a water provider for which infrastructure has been constructed to deliver the water directly to a water service area. For Oro Valley Water Utility this includes a portion of our groundwater rights, CAP water allocation and reclaimed water. Undeveloped water resources are those water supplies that do not have associated infrastructure but are used indirectly by transfer or exchange, such as a portion of our Long -Term Storage Credits. Effluent — Generally refers to wastewater that is treated and discharged to a natural water course. For Oro Valley Water Utility its effluent is treated at facilities owned and operated by Pima County. This treated wastewater effluent is the source of Oro Valley's reclaimed water. Fifteen Year Capital Projects 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 for both the potable water system(s) and the reclaimed water system. 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. Infrastructure Improvements Plan (IIP) — A required plan that identifies projects that will be built for new growth and development within a governmental jurisdiction. An IIP is required to be developed for the inclusion of associated costs when calculating development impact fees. C-2 Kai Farms -- An approved Groundwater Savings Facility located at a fann near Redrock, Arizona that Oro Valley Water Utility uses to accrue storage credits by selling a portion of our CAP water to the farm for irrigation use. Credits are accrued because the farm uses our CAP water and does not use groundwater for irrigation. The groundwater not used becomes a credit to Oro Valley Water Utility for future use. 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. Lake Powell — A water storage reservoir located on the Colorado River near Page, Arizona with a capacity of 24,300,000 acre feet. Glen Canyon 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. "Paper" Water — A term used to describe water that is not directly delivered and is recovered through credits. Recovery of these credits occurs through pumping from permitted recovery wells in a location that is more than one mile from the recharge and storage facility where the credits were originally stored. Pima Mine Road Recharge Project — An approved Underground Storage Facility operated by the Central Arizona Project located in the Tucson Active Management Area near S ahuarita, Arizona. 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. . "Wet" Water — A term used to describe water that is directly delivered from a source of supply such as directly off of a canal or from recovery wells that are located within one mile of recharge and storage facilities where the recovered credits were originally stored. C-3 L C