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TOWN OF ORO VALLEY
WATER UTILITY ANNUAL REPORT
APRIL 2021
TABLE OF CONTENTS
Page
About the Water Utility Commission ...................................................................... 1
Executive Summary ................................................................................................ 4
Water Resources ..................................................................................................... 6
Regulatory ............................................................................................................. 11
Engineering and Planning .................................................................................... 13
Capital Projects .................................................................................................... 13
Customer Service .................................................................................................. 16
Water Conservation .............................................................................................. 17
Operations & Maintenance .................................................................................. 20
Water Quality ........................................................................................................ 22
Backflow Prevention ............................................................................................ 23
Security & Emergency Response .......................................................................... 24
Financial Highlights ............................................................................................... 25
Appendices
A. Static Groundwater Levels
B. Capital Improvement Program
C. Utility Statistics
D. Asset Inventory
E. Acronyms and Glossary
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TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2021
ORO VALLEY TOWN COUNCIL
Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Timothy Bohen, Councilmember
Harry “Mo” Greene, II, MD, Councilmember
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember
Steve Solomon, Councilmember
ORO VALLEY WATER UTILITY COMMISSION
Charlie Hurt, Chair
Tom Marek, Vice Chair
Greg Hitt, Commissioner
Chuck Hollingsworth, Commissioner
Byron McMillan, Commissioner
Robert Milkey, Commissioner
Richard Reynolds, Commissioner
Special acknowledgement goes out to Winston Tustison who served on the
Water Utility Commission for over 13 years and termed out in 2020.
Winston’s contributions to the Commission are far reaching and will benefit
the Community for decades. Additionally, Winston served faithfully on the
Finance Subcommittee for many years, providing knowledge and insight.
Thank you for your enthusiasm and dedicated service, Winston Tustison!
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., Water Utility Administrator
Danielle Tanner, Senior Office Specialist
Special thanks to the Utility staff that provided support in the preparation of this report:
David Allred Gracie Hauvermale Mary C. Kobida Adam Pence Christian Swanson
Karn Boyce Jeffrey Kane Charles Payne Eric Reynaga Irene Swanson
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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 Valley 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 topics that require Mayor and Council action. These topics 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 at https://www.orovalleyaz.gov/Government/Departments/Town-
Clerk/Meetings-and-Agendas
In 2020, the commission held 8 Water Utility Commission meetings. Work performed or
reviewed by the commission in 2020 included:
Meeting Date Action Item
January 7, 2020
Election of Commission Chair and Vice Chair
Appointments to Subcommittees
Action on meeting time change
February 3, 2020 Recommendation on Water Rates
Review and comment on Impact Fee Analysis
March 9, 2020 Recommendation for acceptance of the Annual Report
June 15, 2020 10-Year Water Resource Strategic Plan
10-Year CAP Water Wheeling Delivery Plan
August 10, 2020 Review and comment on reclaimed water history, policy, financing
and usage
September 14, 2020 Guest Speaker on Central Arizona Project (CAP): Mark Taylor,
Founding Partner Westland Resources and CAP Board Member
October 12, 2020 Review and comment on Conservation and Water Quality Sections
November 9, 2020 Review and comment on Northwest Recharge and Recovery Delivery
System
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Additional notable items on commission agendas in 2020 include:
Review and comment on CAP Coordination Meeting
Review and comment on groundwater metrics and wellfield condition
Notable issues planned for commission review or action in 2021 include:
Water rates analysis and proposed rate changes
Recommendation for acceptance of the Annual Report
Mayor and Council Water Policies
Northwest Recharge, Recovery and Delivery System project (NWRRDS)
Wellfield and aquifer condition
2007 Groundwater Production Sustainability Evaluation Report
Possible IGA with Metro Water and Marana Water to expand NWRRDS project
10-Year Water Resource Utilization Plan and Community Sustainability
Customer communication with respect to CAP Tier 1 shortage
CAP water supply
In addition to the regular commission meetings, there are meetings conducted by standing subcommittees. The subcommittee membership is as follows: Finance Subcommittee Tom Marek, Chair Chuck Hollingsworth Robert Milkey
Water Resources and Conservation Subcommittee: Rick Reynolds, Chair
Greg Hitt
Charlie Hurt
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 2021
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TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2021
EXECUTIVE SUMMARY
This section summarizes the activities of the Water Utility Commission, 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 2020 (Acre Feet)
Groundwater CAP Water Reclaimed
Water
Total Water
Produced
5,176 2,518 1,960 9,654
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, 2020, the Utility has accrued an estimated 27,000 acre feet of long-term
storage credits and has a Groundwater Allowance Account balance of approximately 19,130
acre feet.
CUSTOMER SERVICE
At the end of 2020, the Utility had 20,711 customer connections serving a population of
approximately 46,520 residents in the service area. Utility water sales revenues totaled $13.8
million for fiscal year 2019-20 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 2020, the following conservation efforts were accomplished:
Virtual Welcome Guides published
Water Wisdom Video Series published
Over 9,600 automated alerts sent with water savings of over 13 million gallons
Water Audit Program saved 1 million gallons for participating customers
New Conservation Kids Program online learning opportunities
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. In 2020, Water Operations
completed the following:
Decommissioned D-Zone/E-Zone Copper Creek Booster
Booster meter replacement project
Installation of 2 radar level sensors on existing H.P. tanks
Distribution responded to 171 customer inquiries and 97 after hour call outs
WATER QUALITY
In 2020, the Utility received 3,462 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. The financial analysis performed this year resulted
in a recommendation to increase the base and commodity rates for potable water customers
in FY 2021-22. These proposed changes will result in a monthly increase of $1.15 per month
for a customer with a 5/8-inch meter using 7,000 gallons. Customers with a 5/8-inch meter
represent 87 percent of the total customer base and include residential, commercial and
irrigation classifications with the majority being residential. In addition, the recommendation
includes an increase to the reclaimed commodity rate. This change will result in a $1,000
increase per month for turf customers using 10M gallons a month. The proposed changes will
be presented to the Town Council in June 2021 and, if adopted, the new rates would become
effective August 1, 2021.
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
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TOWN OF ORO VALLEY
WATER UTILITY
ANNUAL REPORT
APRIL 2021
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 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 cost recovery for new development. This
report provides information and details activities for calendar year (CY) 2020 with additional
financial information reported for the fiscal year (FY) ending June 30, 2020.
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. Utility 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 2020.
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TABLE 2
Total Water Production in 2020
Water Resources OVWSA CSWSA Totals
Groundwater 4,674 AF 502 AF 5,176 AF
CAP Water 2,367 AF 151 AF 2,518 AF
Reclaimed Water 1,960 AF ---- 1,960 AF
Total 9001 AF 653 AF 9,654 AF
Total water production for 2020 was 820 acre feet more than the total water production in
2019. This increase is due to customer response to a warmer spring, summer and fall
compared to 2019 as well as less than average rainfall for calendar year 2020.
Figure 1 shows total water production in each service area from 1999 through 2020. The
components of total water production include 1) groundwater production 2) CAP water
utilization and 3) reclaimed water utilization. The graph depicts the increase in overall water
production for 2020 as compared to 2019 as well as the dramatic decrease in groundwater
utilization since 2005.
FIGURE 1
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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 2020, Oro Valley pumped 806 acre feet less than the
groundwater target maximum production rate for the OVWSA wells and 378 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 2020, the
Utility’s 18 groundwater production wells produced 54 percent of the Utility’s total water
production.
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 2020.
TABLE 3
Groundwater
Production Capacity
Storage
Capacity
(Gallons)
Average
Water Level
+Rise/-Decline
OVWSA 13.1 MGD 11 Million -2.59 Feet
CSWSA 2.2 MGD 1 Million -2.80 Feet
On an individual basis, groundwater level changes in 2020 for active wells varied from a rise
of 3.66 feet to a decline of 9.09 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
2020, the Utility’s four CAP wheeling locations delivered 26 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 2020, 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 (wheeled) 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,
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north of Naranja Drive 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 Blvd. The Utility delivered
2,518 acre feet of CAP water in 2020 thus reducing its reliance on groundwater. CAP water
deliveries are shown in Table 4.
TABLE 4
CAP Water Deliveries in 2020
Locations Delivery
Vista Del Sol (OVWSA) 1,555 AF
Calle Buena Vista (OVWSA) 319 AF
Oracle & Hardy (OVWSA) 493 AF
Camino De Oeste (CSWSA) 151 AF
Total 2,518 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 over 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 and water
deliveries, 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 Ducey 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 each of the Lower Basin States depending
on the water surface elevation of Lake Mead on January 1st of the given year. Near term CAP
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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. 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. Water surface
elevations between 1,090 feet and 1,075 feet is considered a “tier 0” shortage. We are
currently in a “tier 0” shortage. It is projected that beginning in 2022, Lake Mead’s water
surface elevation will drop below 1,075 feet and a “tier 1” shortage will be declared.
Fortunately, because the Oro Valley Water Utility is a municipal water service provider, the
Utility is among the highest priority users of the CAP and would not see reductions in CAP
water deliveries during a “tier 1” shortage. Unfortunately, the Utility can expect increased
delivery costs of the Town’s CAP allocation if a “tier 1” shortage is declared.
The State of Arizona offers a level of protection from potential CAP curtailments for priority
CAP users through the creation of the Arizona Water Bank Authority. 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 have 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 a portion of its CAP water to increase its 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 2020, the Utility’s reclaimed system
produced 22 percent of the Utility’s total water production.
Oro Valley owns all 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
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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 2020, 1,960 acre feet of reclaimed water was
delivered. This is an increase of 199 acre feet compared to the 1,761 acre feet delivered in
2019. For 2020, the Utility utilized all of its estimated 1,800 acre feet of reclaimed
entitlement.
REGULATORY
The ADWR requires the Water Utility to replace all 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 2020, the
Utility was in compliance with all requirements under the DAWS and fully expects to meet all
requirements in 2021. 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 2020, the Utility purchased 10,305 acre feet of CAP water for delivery
to recharge facilities. Of that amount, approximately 2,357 acre feet were not used for direct
delivery or annual recovery; therefore, increasing the long-term storage credit balance. The
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water stored will be saved for future use. At the end of 2020, the Utility calculated that it had
approximately 27,000 acre feet in long-term storage credits.
Table 5 shows the estimated water storage summary for the end of the 2020 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 the ADWR in October of
2021.
TABLE 5
Water Storage Summary
Calendar Year 2020
(Acre Feet)
Groundwater
Storage Facility
2020 CAP Delivery to
Storage Facility
2020 CAP Recovery
from Storage Facility
Storage Balance
12/31/20
Kai Farms 4,000 1,990 15,253
Lower Santa Cruz 3,305 3,000 7,983
Pima Mine Road --- --- 2,868
Central Avra Valley 3,000 2,704 831
Effluent Storage --- --- 65
Total 10,305 7,694 27,000
Note: The 2020 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 2020, the Utility did not use any credits from the Groundwater Allowance
Account. All 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 2020 was 19,130 acre feet.
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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. Maps
produced by GIS staff facilitate Utility operations, planning and engineering. Additionally,
Engineering has spearheaded the design and parameters for the Water Utility’s asset
management system (Cartegraph).
In 2020, the New Development Section within the Engineering and Planning Division
completed the following:
Reviewed and approved water improvement plans for 20 construction projects
Approved plans and completed 18 as-built plans
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.
Some of the notable capital projects are described below.
FY 2020-2021 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 between
zones from a pressure controlled to a level controlled system. The project design was
completed in FY 2018-19 and construction was completed in May 2020.
Northwest Recharge, Recovery and Delivery System (NWRRDS): As discussed on page 9
of this document, this project is designed to deliver a portion of the Town’s recharged CAP
water from the Lower Santa Cruz Recharge Facility to the OVWU service area. Once
completed, this water infrastructure will allow the Utility to deliver up to an additional
4,000 acre feet of CAP water per year to the Oro Valley water customers.
Environmental investigation and archaeological studies have been completed as well as
the construction of 3 high capacity recovery wells. The design of the water transmission
main, easement and property acquisitions are on schedule to be completed in June of
2021. The project is slated for completion in 2024.
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Wells CS1, D-8, and E5B rehabilitation: Well rehabilitation work includes pre and post
video logs to assess the well’s condition. This work is followed by the brushing and bailing
of the well, repair of the well casing when required, header piping replacement and the
installation of new chlorinator pumps and pads. Well CS-1 will also have motor
rehabilitation work prior to placing the well back in service. Well CS-1, pictured below, has
a capacity to deliver up to 480 acre feet of groundwater per year.
Pictured above, the well rehabilitation contractor prepares to install a patch in well CS1.
Perpetual well maintenance is an important part of the Utility’s Capital Improvement Program
and ensures a reliable water system for the community.
Nakoma Sky Well retaining wall and site work: Construction of the Nakoma Sky retaining
wall and well equipping consists of the construction of a concrete retaining wall, masonry
perimeter wall, security fencing, grading and drainage work. Once this work is completed,
equipping of the well will begin.
Replacement of “F1” Zone Hydropneumatic tanks at Well F1 and High Mesa Booster: The
purpose of this multi-year project is to upgrade the Utility’s existing pressure tanks to meet
current safety requirements based on American Mechanical Engineering Standards for
structural design and integrity of vessels.
Facility upgrades and improvements to Production/Reclaimed offices: This project adds
additional capacity for staff workstations at the Utility’s Production Facility. The scope of
work includes earthwork, utilities and the placement of prefabricated modular buildings.
La Cañada offsite electrical design: This project is the first of a multiyear design and
construction project to equip the La Cañada Reservoir with two new booster stations. The
first year of work includes the design and construction of the electrical improvements
necessary to power the future booster stations at La Cañada. This will ultimately help the
Utility with moving water to “F” and “G” zones.
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Allied Signal Reservoir demolition and reconstruction of 500,000-gallon reservoir:
This project was identified in early 2020 as an emergency reservoir replacement project
due to the structural failure of the reservoir’s structural support beams due to corrosion.
Construction of a new 500,000-gallon reservoir located in the La Reserve neighborhood
will be completed in the Spring of 2021.
Pictured above, the contractor completes the erection of the perimeter walls of the new
Allied Signal Reservoir. Approximately $750,000 of the Utility’s $6 million 2018 bond
proceeds are funding this capital investment effort.
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. This year, the Utility replaced six 12-inch
butterfly valves with gate valves.
Pictured above, the contractor installs a new gate valve and a section of piping distribution main. Capital reinvestments of this type are perpetual in nature.
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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 20,711 metered connections serve a combined population of
approximately 46,520 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 257,388 bills in FY 2019-20 generating $13,780,811 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 bill
and collect monthly sewer fees from the Utility’s customers. In addition, the Utility provides
monthly and quarterly billing for the Town’s Stormwater Utility fees. In FY 2019-20, the Utility
processed a total of $28,480,517 in payments for the Utility and the other two organizations
as follows:
Oro Valley Water Utility $ 17,708,079
Pima County Wastewater Reclamation $ 9,327,203
Town of Oro Valley Stormwater Utility $ 1,445,235
It is important to note that the total payments for 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 charged by the Utility.
Of the above payments processed, the payments made with credit cards totaled $4,321,566.
This is a 19 percent increase over credit card payments made in FY 2018-19. This increase
$369,785
$917,425
$9,721,227
$1,187,244
$1,495,719
$89,411
Revenue By User ClassificationFY 2019-20
Construction - 2%
Commercial - 7%
Residential - 71%
Irrigation - 9%
Reclaimed - 10%
Potable Turf - 1%
20
was mostly attributed to an increase in credit card use during the COVID pandemic. The use
of credit cards for payment of utility bills creates efficiencies for customer service 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.
WaterSmart is a customer portal that provides customers the ability to monitor their own
water use on an hourly, daily, weekly or monthly basis. Customers can also set individual
water use thresholds that will enable the system 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 2020 include the following:
Produced over 257,388 water bills
Processed 5,107 change of service requests
Issued 3,605 work orders to field staff
Processed 387 new meter installation applications
Utility statistics, including the billing collection rate for 2020, may be found in Appendix C.
WATER CONSERVATION
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.
The pandemic required a shift in our communication strategies to support more online
options to meet social distancing guidelines. Although these new publications were in the
planning stages, it resulted in an extension of our services while adding to our current
publication offerings.
New Publications
Virtual Welcome Guide
Water Wisdom Video Series
21
Community Outreach and Education Programs
The WaterSmart Program provides customers with a self-service tool to view their water use
at any time. Early leak detection and high use notifications save water, reduce water waste
and reduce the shock of high water bills. Although the program is available to all customers,
Single Family Residential (SFR) customers are our largest water use group and make up the
largest portion of registered accounts on the program.
There were over 6,000 registered accounts on the WaterSmart Program
There were over 9,600 automated alerts sent during CY 2020 with water savings of
over 13 million gallons
The rate of email alerts opened by customers was 70 percent and shows many of our
customers are aware of the program or actively engaged in the program
Visits to the customer portal increased over 50 percent from January to July 2020
The Water Audit Program is a free educational and technical assistance service offered to
residential, HOA and commercial customers. Audits are typically conducted onsite and used
to evaluate potential water savings for both indoor and outdoor water use. However, this
year was focused more on outdoor spaces and remote assistance to reduce customer contact.
The water use information available through smart meters allows staff to help many of our
customers over the phone. Irrigation is one of the most common leak problems reported by
customers. Leaks related to irrigation may not be obvious to the customer. Confusion with
irrigation timer settings and over watering are significant contributors to high water use
complaints.
Customers saved approximately 1 million
gallons participating in our Water Audit
program (2019 audits)
Over 2,200 audits have been provided to
customers since 2003
22
The Conservation Kids Program
Oro Valley Water partnered with the Environmental Education Exchange in 2013 to develop
and manage our Conservation Kids Program. The program reaches over 600 first through
third grade students annually within Oro Valley Town limits and adjacent service areas. To
provide flexibility, adaptations were made to the program in 2020 to offer conservation
classes online.
Future Focus Areas
The Utility continually looks for ways to expand opportunities for public education
and advocacy regarding water conservation.
Increase customer participation in the WaterSmart Program across all meter classes
through targeted outreach efforts
Develop water use benchmarks that are useful and practical to Utility customers as
determined by evaluation models
Develop a quarterly newsletter to increase communication with customers and
highlight Water Utility services and programs
Irrigation
Pool
Service Line
House PlumbingToilet
LEAK TYPES REPORTED
CY 2020
- 200,000 400,000 600,000 800,000 1,000,000
Gallons
LEAK VOLUME
CY 2020
Toilet
House Plumbing
Service Line
Pool
Irrigation
23
OPERATIONS AND MAINTENANCE
All Production, Distribution and Meter operations personnel are certified operators licensed
by the Arizona Department of Environmental Quality (ADEQ).
All operations personnel work together to address water system problems. On-call staff
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 that is managed by the Water Control Systems Department.
Production staff performs routine mechanical and assists with electrical maintenance at 45
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 perform an
annual groundwater level survey of static water levels in all wells.
The following are major activities and accomplishments of Production personnel in 2020:
After hours - 332 overtime hours
Cleaned and inspected 5 Potable water reservoirs and 1 reclaimed water reservoir
Decommissioned D-Zone/E-Zone Copper Creek Booster
Reclaimed facility improvements for installation of two additional 10’x25’ mobile
office buildings
Booster meter replacement project. One McCrometer mag meter installed at Naranja
Booster E-Zone
Rehabilitation of Well D8
Stone Canyon reclaimed metering station rehabilitation
Eliminated hard copy paperwork for all staff with the introduction into “Cartegraph”
asset management software program. Field staff daily/weekly inspection forms have
been converted to paperless
Warranty replacement of 4 faulty water reservoir mixing units
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 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.
24
Distribution staff has significant direct customer contact and professionally responds 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 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 2020:
Responded to 171 customer inquiries and 97 after hour call outs
Maintained 1,587 water valves, replaced 3 valves and performed 55 valve adjustments
Maintenance performed on 120 fire hydrants and made 120 repairs to fire hydrants
Performed 124 inspections on 36 pressure reducing valves, and made repairs on 31
pressure reducing valves
Performed 11,207 bluestakes for potable and reclaimed pipelines
Repaired 6 main breaks
Replaced 3 water distribution main line valves: 4”, 6” and 8”
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 collaborates with customers, and 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
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.
Using Town equipment, the Utility’s
distribution staff repaired 6 main line
breaks and 8 service line repairs. The Utility
realized an estimated savings of $230,000
by performing this work in-house rather
than hiring an outside contractor to make
these repairs.
25
AMI technology also increases 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 and 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 essential to providing 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 2020, the Utility received 3,462 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. Including
groundwater wells, reservoirs and pumping stations. The Utility also samples from 58
additional 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 EPA’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 2020, 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 2020, the hardness levels in Oro Valley ranged from 2.2 to 14.6 grains per
gallon (37 ppm to 250 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.
26
Due to proposed regulatory changes and requirements, in 2020 the Utility continued
preparation to phase in five proposed and pending EPA regulations related to monitoring
rules:
Fifth Unregulated Contaminant Monitoring Rule 2023-2025
Revised Long-Term Lead and Copper Rule December 2023
Perchlorate TBD
Strontium TBD
Chromium Total/Hexavalent Chromium TBD
In 2021, the Utility will continue to phase in sampling and monitoring of new contaminants in
accordance with regulatory requirements.
The Utility produced a 2019 Consumer Confidence Report for each water system 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 at
https://www.orovalleyaz.gov/Government/Departments/Water-Utility/Water-
Quality#section-1 The 2020 Consumer Confidence Reports will be completed in June of 2021.
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
2020.
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 R18-4-2115, and the guidelines of
the University of Southern California Foundation for Cross Connection Control and Hydraulic
Research.
There are 1,431 backflow prevention assemblies in the program. The following are some of
the major activities and accomplishments performed by the Backflow Prevention Division in
2020:
Tested 254 backflow assemblies
Repaired 31 in-ground and construction water backflow prevention assemblies
Issued 63 permits for new and replacement backflow prevention assemblies
Conducted a survey and inspection of 409 backflow assemblies
Implemented new cross connection control program software
27
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
assemblies installed. During that time frame, backflow assemblies were not required 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 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 2020, Utility personnel, with the assistance of a security consultant were mainly focused on
finalizing and submitting the Risk and Resilience Assessment Certifications for the America’s
Water Infrastructure Act (AWIA) of 2018. Certifications for the Oro Valley Water System and
the Countryside Water System were submitted, and confirmation received, before the due
date of 12/31/2020. Selective training is scheduled for early 2021 and is in accordance with
the guidelines from the Department of Homeland Security, Federal Emergency Management
Agency and the United States Environmental Protection Agency. The Utility continues to
update 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 aid to other member utilities in the event
of an emergency.
28
FINANCIAL HIGHLIGHTS
The Utility is financially sound and continues to manage its revenues, control expenses and
reduce debt. The Water Utility’s outstanding revenue bonds have a rating of “AA+” from
Standard and Poor’s and “AA” from 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 two 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 Water Resource and System Development Impact Fee Fund (WRSDIF) provides
funding for expansion related projects for new growth, development of renewable
sources of water supply and infrastructure required for delivery of those resources. The
source of revenue for this fund is impact fees collected at the time water meters are
purchased.
Effective July 1, 2020, the Alternative Water Resources and Development Impact Fee Fund
(AWRDIF) and the Potable Water System Development Impact Fee Fund (PWSDIF) were
combined into the Water Resource and System Development Impact Fee Fund (WRSDIF).
29
Table 6 contains the actual revenue billed compared to the revenue budgeted in FY 2019-20
for all funds within the Utility:
TABLE 6
Revenue Source Budget
FY 2019-20
Amount Billed
FY 2019-20
Over (Under)
Budget
Over (Under)
Budget
Potable Water Sales:
Residential $9,638,800 $ 9,721,228 $ 82,428 0.9%
Commercial $ 909,200 $ 917,425 $ 8,225 0.9%
Irrigation $1,351,800 $ 1,187,245 ($ 164,555) -12.2%
Turf $ 97,900 $ 89,410 ($ 8,490) -8.7%
Construction $ 200,000 $ 369,785 $ 169,785 84.9%
Reclaimed Water Sales:
Turf $ 1,443,300 $ 1,421,926 ($ 21,374) -1.5%
Commercial $ 60,500 $ 65,007 $ 4,507 7.4%
Irrigation $ 12,500 $ 8,787 ($ 3,713) -29.7%
Subtotal Water Sales: $13,714,000 $13,780,813 $ 66,813 0.5%
Misc. Service Fees & Charges $ 862,200 $ 870,984 $ 8,784 1.0%
Groundwater Preservation Fees $ 2,400,500 $ 2,389,953 ($ 10,547) -0.4%
Total Enterprise Fund $ 16,976,700 $ 17,041,751 $ 65,051 0.4%
AWRDIF Impact Fees $ 1,276,190 $ 1,627,435 $ 351,245 27.5%
PWSDIF Impact Fees $ 635,728 $ 810,689 $ 174,961 27.5%
Interest Income – All Funds $ 139,800 $ 887,772 $ 747,972 535%
Total All Funds for FY 2019-20 $19,028,418 $ 20,367,647 $1,339,229 7.0%
Note: The interest income for FY 2019/20 totaled $887,772 which is over budget by 535%. This is due to
interest income being under budgeted and the recording of unrecognized gains.
The budgeted expenses (excluding depreciation and amortization) for the Operating Fund are
compared to the actual expenses for FY 2019-20 in Table 7:
TABLE 7
Expenses
Budget
FY 2019-20
Actual Spent
FY 2019-20
Over (Under)
Budget
Over (Under)
Budget
Personnel $3,370,579 $3,424,009 $ 53,430 1.6%
O&M $8,653,329 $7,501,290 ($1,152,039) -13.3%
Capital Outlay $4,305,616 $1,897,864 ($2,407,752) -55.9%
Total $16,329,524 $12,823,163 ($3,506,361) -21.5%
The Utility’s personnel costs were slightly over budget due to the unbudgeted leave pay out
of a retired employee. The O & M expenses were under budget due to not purchasing
Groundwater Extinguishment Credits and cost savings. Capital outlay was below budget due
to permitting delays with the partnered NWRRDS project as well as construction delays with
30
the Nakoma Sky well equipping due to the postponement of the Nakoma Sky development
project.
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 12/31/20
Debt Service
Payments
FY 2020-21
Interest
Rate
%
Maturity
Operating (WIFA) (GPF) 2008 $ 1,922,265 $ 238,397 3.5 2027
Operating (WIFA) 2009 $ 1,163,654 $ 110,419 3.2 2029
Operating 2012 $ 1,710,441 $ 491,865 4.0 2028
Operating (GPF) 2012 $ 3,117,752 $ 896,556 4.0 2028
Operating (WIFA) 2014 $ 2,713,109 $ 300,914 2.7 2029
Operating 2015 $ 717,090 $ 134,970 2.3 2025
Operating 2017 $ 9,154,538 $ 1,401,440 2.4 2026
Operating 2018 $ 5,529,750 $ 343,500 3.0 2033
WRSDIF 2012 $ 961,807 $ 276,579 4.0 2028
Totals $26,990,406 $ 4,194,640
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 2021-22 resulted in a recommendation to increase the base rates
and commodity rates for potable water customers. These proposed changes will result in a
monthly increase of $1.15 per month for a customer with a 5/8-inch meter using 7,000
gallons. Customers with a 5/8-inch meter represent 87 percent of the total customer base
and include residential, commercial and irrigation classifications with the majority being
residential. In addition, the recommendation includes an increase to the reclaimed
commodity rate. This change will result in a $1,000 increase per month for turf customers
using 10M gallons a month. The proposed changes will be presented to the Town Council in
June 2021 and, if adopted, the new rates and groundwater preservation fees would become
effective August 1, 2021.
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
2021 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 2020 and 2021:
Countryside Water Service Area
Well Name
Annual
Pumped Acre
Feet
1 Year
Change
2020
5 Year
Change
2015 - 2020
5 Year
Average
2015 - 2020
CS-1 204.05 -0.58 -2.83 -0.57
CS-2 298.38 -5.03 -7.28 -1.46
Average -2.80 -5.05 -1.01
Oro Valley Water Service Area
Well Name
Annual
Pumped Acre
Feet
1 Year
Change
2020
5 Year
Change
2015-2020
5 Year
Average
2015-2020
C-4 100 -1.09 -9.75 -1.95
C-5 167 -2.00 -11.58 -2.32
C-6 246 -2.00 -10.60 -2.12
C-8 243 -9.09 -13.07 -2.61
C-9 238 -1.00 -10.25 -2.05
D-1 195 -2.59 -13.92 -2.78
D-6 215 -2.50 -8.50 -1.70
D-7 288 -6.84 -13.58 -2.72
D-8 60 3.66 -1.34 -0.27
D-9 318 -0.42 -11.74 -2.35
E-1B 457 -5.08 -16.87 -3.37
E-2 399 0.24 -12.49 -2.50
E-5B 303 2.34 -10.33 -2.07
E-6B 602 -4.00 -15.84 -3.17
E-7B 356 -6.83 -14.75 -2.95
F-1 487 -4.17 -11.20 -2.24
Average -2.59 -11.61 -2.32
A-1
TOWN OF ORO VALLEY
WATER UTILITY
2021 ANNUAL REPORT
APPENDIX B
PROPOSED FIVE - YEAR
CAPITAL IMPROVEMENT PROGRAM
B-1
B-2
B-3
TOWN OF ORO VALLEY
WATER UTILITY
2021 ANNUAL REPORT
APPENDIX C
UTILITY STATISTICS
UTILITY STATISTICS
C-2 C-1
C-2
C-3
TOWN OF ORO VALLEY
WATER UTILITY
2021 ANNUAL REPORT
APPENDIX D
ASSET INVENTORY
Y
ASSET INVENTORY
Assets as of December 31, 2020
Potable Assets Quantity Value
CAP Water Rights (allotment in acre feet) 10,305 $ 8,534,490
Land --- $ 2,189,864
Wells (active & inactive) 35 $ 10,310,434
Booster Stations (active & inactive) 26 $ 5,386,954
Reservoir Capacity (million gallons) 11.31 $ 12,504,493
Fire Hydrants 2,394 $ 3,379,466
Meters 20,324 $ 9,179,781
Services 22,005 $ 5,298,059
Equipment --- $ 2,069,556
Structures --- $ 1,998,819
Vehicles 35 $ 2,036,276
Telemetry --- $ 451,416
Buildings & Improvements --- $ 425,715
Water Mains (miles) 375 $ 68,886,622
The value of the following appurtenances are included in water mains:
Valves 8,605
Pressure Reducing Valves 36
Air Relief Valves 984
Drain Valve Assemblies 950
Subtotal Value of Potable Assets $ 132,651,945
Accumulated Depreciation $ (48,969,865)
Net Value of Potable Assets $ 83,682,080
Reclaimed Assets Quantity Value
Land --- $ 220,796
Telemetry --- $ 29,654
Booster Stations 2 $ 7,478,811
Reservoir Capacity (million gallons) 1.3 $ 2,494,603
Water Mains (miles) 13.9 $ 12,013,432
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 $ 22,237,296
Accumulated Depreciation $ (6,554,257)
Net Value of Reclaimed Assets $ 15,683,039
Total Value of all Water Assets Net of Depreciation $ 99,365,119
D-1
TOWN OF ORO VALLEY
WATER UTILITY
2021 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 and 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
CY Calendar Year
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
IGA Intergovernmental Agreement
LSCRRP Lower Santa Cruz Replenishment Project
LTSC Long-Term Storage Credit
MGD Million Gallons per Day
NWRRDS 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
WRSDIF Water Resource and System Development Impact Fee Fund
E-1
GLOSSARY
Acre Foot – The volume of water necessary to cover an area of one acre to the depth of one
foot, 43,560 cubic feet. One acre foot is equal to 325,851 US 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.
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 six 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 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.
E-2
Groundwater Extinguishment Credits – Credits that are generated when a grandfathered
groundwater right is extinguished or retired and never used again. The credits are issued as 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 on the Colorado River near Page, Arizona with a capacity
of 24.3 million acre feet. Glen Canyon Dam forms the lake and provides hydro-electric power.
Lake Mead – The largest water storage reservoir in the United States with a capacity of 25.9
million 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 partner’s 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 – 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 existing 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. E-3