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HomeMy WebLinkAboutPackets - Water Utillity Commission (36)       AGENDA WATER UTILITY COMMISSION REGULAR SESSION SEPTEMBER 13, 2021 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE        REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER   ROLL CALL   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE AUGUST 9, 2021 REGULAR SESSION MEETING MINUTES   2.DISCUSSION ON FISCAL YEAR 2022-23 COST OF SERVICE STUDY (M. RALLIS)   3.UPDATE AND DISCUSSION ON ORO VALLEY'S COLORADO RIVER WATER SUPPLY (P. ABRAHAM)   4.DISCUSSION AND POSSIBLE ACTION ON NORTHWEST RECHARGE, RECOVERY AND DELIVERY SYSTEM SUPPLEMENTAL AGREEMENT (P. ABRAHAM)   5.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN)     6.SUBCOMMITTEE/COMMISSIONER REPORTS      A.FINANCE SUBCOMMITTEE      B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE      7.DIRECTOR'S REPORT   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card.   FUTURE AGENDA ITEMS   ADJOURNMENT   POSTED: 09/08/21 at 5:00 p.m. by PP When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. In accordance with the Pima County Health Department’s most recent health advisory, the Town respectfully asks all in-person meeting attendees, regardless of vaccination status, to please wear a mask while indoors. COVID-19 remains a fluid situation, and the Town will adjust its safety guidelines in accordance with any future health advisories from the Health Department. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.”    Water Utility Commission 1. Meeting Date:09/13/2021   Submitted By:Danielle Tanner, Water SUBJECT: REVIEW AND APPROVAL OF THE AUGUST 9, 2021 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I move to approve (approve with changes) the August 9, 2021 regular session meeting minutes.  Attachments Item 1 - Draft Minutes 08/09/21  D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION AUGUST 9, 2021 ONLINE ZOOM MEETING            REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER - Chair Hurt called the meeting to order at 5:01 p.m.   ROLL CALL Present: Charlie Hurt, Chair Tom Marek, Vice Chair Greg Hitt, Commissioner Chuck Hollingsworth, Commissioner Byron McMillan, Commissioner Robert Milkey, Commissioner Staff Present:Peter A. Abraham, P.E., Water Utility Director David Allred, Water Operations Manager Lee Jacobs, P.E., C.P.M., Engineering Division Manager Mary Rallis, CPA, Water Utility Administrator Adam Pence, Water Quality Lead Operator Attendees: Timothy Bohen, Town Council Liaison CALL TO AUDIENCE - No speakers.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE JUNE 14, 2021 REGULAR SESSION MEETING MINUTES       Motion by Commissioner Robert Milkey, seconded by Vice Chair Tom Marek to approve the June 14, 2021 regular session meeting minutes as written.  Vote: 6 - 0 Carried   2.UPDATE ON WATER UTILITY COMMISSION VACANCY Chair Hurt announced Commissioner Reynolds has resigned from the Water Utility Commission. Chair Hurt expressed appreciation for his service and wished him well in his future endeavors. The Town will recruit to fill the vacancy in the fall.   3.UPDATE AND DISCUSSION ON WATER QUALITY    8/9/21 Minutes, Water Utility Commission Regular Session 1    Water Quality Lead Operator Adam Pence provided a presentation which included the following: - Overview - Regulatory agencies - EPA sampling requirements - Non-regulated sampling - Monitoring changing rules - 2020 Water Quality results - Backflow Prevention Program Discussion ensued amongst the Commission and staff regarding Item 3.   4.UPDATE AND DISCUSSION ON WATER INFRASTRUCTURE SECURITY       Water Utility Director Peter Abraham provided a presentation which included the following: - Federal requirements - State requirements - Oro Valley Water Utility mitigation actions Discussion ensued amongst the Commission and staff regarding Item 4.   5.UPDATE AND DISCUSSION ON PROPOSED NORTHWEST RECHARGE, RECOVERY AND DELIVERY SYSTEM SUPPLEMENTAL AGREEMENT       Water Utility Director Peter Abraham provided a presentation which included the following: - Northwest Recharge, Recovery and Delivery System (NWRRDS) partnered and independent projects - NWRRDS partnered IGA - NWRRDS supplemental IGA goals and details - Completed steps/next steps Discussion ensued amongst the Commission and staff regarding Item 5.   6.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS       Water Utility Administrator Mary Rallis provided a presentation which included the following: - Financial update - FY 20/21 revenues - Financial update - FY 20/21 expenses - Customer Service update through 6/30/21 Discussion ensued amongst the Commission and staff regarding Item 6.   7.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS       Water Engineering Manager Lee Jacobs provided a presentation which included the following: 8/9/21 Minutes, Water Utility Commission Regular Session 2  Water Engineering Manager Lee Jacobs provided a presentation which included the following: - Well rehabilitation E5-8, D-8, E1-B and CS-1 - Pump installation CS-1 - Nakoma Sky production well, retaining wall and security wall - Steam Pump Well D-11 - Well F-1 hydropneumatic tank replacement - High Mesa "F" Zone booster station hydropneumatic tank replacement - Backflow retrofit of fire protection systems - Facility upgrades and improvements - Commissioning of reclaimed facility additional office space - Valve Replacement Program - La Cañada Booster Station "E" to "F" and "E" to "G" Zone boosters - La Cañada Booster and discharge line design - Allied Signal Reservoir design and construction and new Allied Signal reservoir - NWRRDS independent and partnered pipeline design - Budgeted capital projects for current fiscal year 21/22   8.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE       Water Utility Director Peter Abraham provided an update on water production for the Countryside and Oro Valley service areas from January through June.   9.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE MEMBER APPOINTMENT    Chair Hurt announced the vacancy on the Water Resources and Conservation Subcommittee and recommended Byron McMillan fill the position. Water Utility Director Peter Abraham agreed and mentioned Commissioner McMillan is the only Commissioner currently not serving on a Subcommittee. Commissioner McMillan agreed to serve on the Subcommittee.   10.TOWN COUNCIL MEETINGS/COMMUNICATIONS Councilmember Bohen provided an update on recent and upcoming Town Council agenda items related to the Water Utility.   11.SUBCOMMITTEE/COMMISSIONER REPORTS   A.FINANCE SUBCOMMITTEE - Vice Chair Marek stated the Subcommittee has not met since June.   B.WATER RESOURCES AND CONSERVATION SUBCOMMITTEE - Chair Hurt stated the Subcommittee has not met and will likely resume in the fall.   12.DIRECTOR'S REPORT       Water Utility Director Peter Abraham provided a presentation which included the following: - Announcements - Upcoming meetings   CALL TO AUDIENCE - No speakers. 8/9/21 Minutes, Water Utility Commission Regular Session 3   FUTURE AGENDA ITEMS - There were no items suggested.   ADJOURNMENT    Motion by Commissioner Greg Hitt, seconded by Commissioner Byron McMillan to adjourn the meeting at 6:43 p.m.  Vote: 6 - 0 Carried     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 9th day of August, 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Danielle Tanner Senior Office Specialist 8/9/21 Minutes, Water Utility Commission Regular Session 4    Water Utility Commission 2. Meeting Date:09/13/2021   Submitted By:Danielle Tanner, Water SUBJECT: DISCUSSION ON FISCAL YEAR 2022-23 COST OF SERVICE STUDY (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: Discussion only. Attachments Item 2 - Cost of Service Study  Mary E. Rallis, C.P.A. Water Utility Administrator Water Utility Commission Meeting September 13, 2021 Oro Valley Water Utility Discussion on FY 2022-23 Cost of Service Study ►Typically, every five years the Water Utility hires an outside firm to perform a cost of service study for water rates. ►The Utility has contracted with Willdan Financial Services to perform this years cost of service study. ►Additionally, the consultant will provide Utility staff with perspective on the current national, regional and local trends on rate setting. ►Willdan will provide a recommendation on the following: Cost of Service Study Potable base and commodity rates Potable Groundwater Preservation Fee Will not include reclaimed base or commodity rates Willdan requested the following items for the study: Requested information for Cost of Service Study Water Utility FY 2021/22 operating budget Town of Oro Valley Comprehensive Annual Financial Report Water billed for last three fiscal years Water consumption for last three fiscal years Active accounts for last three fiscal years Water purchased/produced for last three fiscal years Debt service schedules for all outstanding debt Capital Improvement Plan Water Rate Schedule Next Steps Cost of Service Study Willdan will meet with Finance Subcommittee to review results. Additional meetings will be scheduled with Finance Subcommittee, as needed. Willdan will present results of cost of service study to Water Utility Commission. Schedule 10/TBD/21 Finance Subcommittee meeting –Willdan Presentation 11/08/21 WUC meeting –Update on water rates analysis 11/TBD/21 Finance Subcommittee meeting, if needed 01/10/22 WUC meeting –Update on water rates analysis 01/TBD/22 Finance Subcommittee meeting, if needed. 02/14/22 WUC Meeting –recommendation on water rates –Willdan Presentation 03/02/22 Town Council –Adoption of Notice of Intent 03/29/22 Publish public hearing date on Town website –60 day notice 03/29/22 Publish Notice of Intent in newspaper –20 day notice 06/01/22 Town Council –Public Hearing to adopt proposed rates 07/02/22 New rates become effective –30 days after adoption Cost of Service Study Discussion    Water Utility Commission 3. Meeting Date:09/13/2021   Submitted By:Danielle Tanner, Water SUBJECT: UPDATE AND DISCUSSION ON ORO VALLEY'S COLORADO RIVER WATER SUPPLY (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: Discussion only. Attachments Item 3 - Colorado River Water Supply  Oro Valley Water Utility Peter A. Abraham, P.E.Water Utility Director Water Utility Commission MeetingSeptember 13, 2021 Update & Discussion on Oro Valley’s Colorado River Water Supply Colorado River System Colorado River system is 1,450 miles long,runs from the Rocky Mountains to Gulf of California Holds 4-5 times the river’s annual flow Provides water to seven US statesand Mexico Upper Basin States: Colorado,New Mexico, Utah and Wyoming Lower Basin States:Arizona, California and Nevada 7.5 MAF/year for each Supplies water for approximately40 million people Supplies water to over 5 millionacres of agricultural production Capacity to generate more than 4,200 megawatts of hydropower Enough power to serve 1.3M people Supports Arizona’s $250B economy Lake Mead & The Lower Basin Drought Contingency Plan Lower Basin Colorado River entitlements: California: 4.4 MAF/YR Arizona: 2.8 MAF/YR (1.8 MAF/YR on river users & 1.6 MAF/YR CAP) Nevada: 0.3 MAF/YR Colorado River system began experiencing drought conditions in 2000 It is estimated that the river is over-allocated by 1.2 MAF / Yr. Shortages are dependent on the surface water elevation of Lake Mead Lower Basin Drought Contingency Plan (LBDCP) only applies to Arizona,California, BOR, Nevada & Mexico Reductions occur in a priority order Water surface elevations of Lake Mead determine annual delivery volumes to the Lower Basin States Lower Basin Drought Contingency Plan Arizona’s CAP Priority System Arizona has a long-standing priority systemthat governs who receives Colorado Riverwater in times of shortageExcess water: lowest priorityAgriculture: next higherNon-Indian agriculture: next higherMunicipal, Industrial and Indian: highest Colorado River’s 1.2 MAF/Yr. over-allocationgap closed at CAP reduction of 640,000 AF/Yr. At a CAP reduction of 640,000 AF/Yr. the overall river reduction ranges from 1.1 –1.2MAF/Yr. Last month U.S. Bureau of Reclamation publishedthe results of their modeling effort that predictthat the water surface elevation of Lake Meadeat Hoover Dam will fall below an elevation of1,075 feet triggering a Tier 1 shortage Shortage will begin in January of 2022 Tier 1 shortage does not affect Oro Valley’s CAP allocation What Do CAP Shortages Mean To Oro Valley? Oro Valley Water Utility has a subcontract with CAP Oro Valley’s CAP allotment is part of the Municipal Priority Pool A reduction in deliveries of 1.2 MAF is achieved prior to cuts to the M&I priority pool If Lake Mead drops below 1,025 Ft, delivery reductions up to 7% could beexperienced by the M&I priority pool For Oro Valley, a 7% cut would equate to a 721 AF/YR reduction 10,305 AF (current allotment) –721 AF (possible reduction) = 9,584 AF/YR In 2020, the Utility used 7,800 AF of it’s CAP allocation and stored the restin aquifer storage for future use Contingency Planning:Utility has accrued more than 33,000 AF of long-term storage creditsUtility accrues between 2,500-3,000 AF of long-term storage credits/yearUtility has access to more than 600,000 AF or stored AWBA water in the TAMAUtility is a member of the CAGRDConservation tools Summary:Even if a Tier 3 shortage is realized the Town of Oro Valley would still have the water resources to operate the same as it does today. Discussion    Water Utility Commission 4. Meeting Date:09/13/2021   Submitted By:Danielle Tanner, Water SUBJECT: DISCUSSION AND POSSIBLE ACTION ON NORTHWEST RECHARGE, RECOVERY AND DELIVERY SYSTEM SUPPLEMENTAL AGREEMENT (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve the Northwest Recharge, Recover and Delivery System Supplemental Agreement.  Attachments Item 4 - NWRRDS Supplemental Agreement Presentation  Item 4 - NWRRDS Supplemental Agreement  Peter A. Abraham, P.E. Water Utility Director Water Utility Commission Meeting September 13, 2021 Oro Valley Water Utility Update & Possible Action on NWRRDS Supplemental Agreement NWRRDS Partnered & Independent Projects NWRRDS partnered project consists of: Siting, construction and equipping of 3 high capacity recovery wells Construction of recovery well pipeline and transmission main Construction of a 2M gallon reservoir NWRRDS independent project consists of: Construction of booster station at reservoir Construction of transmission pipeline to respective service area NWRRDS Partnered IGA NWRRDS partnered IGA specifics: Ends at partnered reservoir Each partner is responsible for their own booster station and transmission pipeline from partnered reservoir to respective service area IGA signed in March of 2017 Challenges / Opportunities: Booster station construction logistics Pipeline alignment construction logistics Right-of-way and easement challenges Additional opportunities for economiesof scale NWRRDS Supplemental IGA Goals: Simplify construction coordination Allow all partners to have beneficial occupancy of the infrastructure at the same time Take advantage of economies of scale IGA Details Oro Valley becomes lead agency for supplemental IGA Project management by Oro Valley Inspected and accepted on behalf of the partnersby Oro Valley Partners reimburse Oro Valley for all costsassociated with work relatedto the partners Agreement was completed July of 2021 Update & Discussion on Supplemental NWRRDS IGA Discussion 00076451.DOCX /1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT THE TOWN OF MARANA AND THE TOWN OF ORO VALLEY TO ACCOMMODATE ADDITIONAL PARTNERED WATER FACILITY CONSTRUCTION AS PART OF THE NORTHWEST RECHARGE, RECOVERY, AND DELIVERY SYSTEM (NWRRDS) This Intergovernmental Agreement (this “IGA”) is entered into by and between the Metropolitan Domestic Water Improvement District, an Arizona domestic water improvement district (“MDWID”); the Town of Marana, an Arizona municipal corporation (“Marana”); and the Town of Oro Valley, an Arizona municipal corporation (“Oro Valley”). RECITALS A. MDWID, Marana and Oro Valley are parties to that certain intergovernmental agreement entitled “Northwest Recharge, Recovery, and Delivery System (NWRRDS) Intergovernmental Agreement” made and entered into on April 19, 2017 and recorded in the office of the Recorder of Pima County, Arizona, on April 19, 2017, at Sequence 20171090375 (the “Original IGA”). B. Each of the Parties has stored water underground or has utilized a groundwater savings facility for later recovery and use as provided by Arizona law. C. Each Party desires to recover the water stored underground or credited through a groundwater savings facility and utilize that water as provided by Arizona law. D. Each Party desires to work together with the other Parties in good faith to recover and deliver renewable water to foster water resource stability regionally and in each Party’s respective service area. E. To allow for the transportation and use of the recovered water, each of the Parties is currently participating in the design and construction of the NWRRDS Project in the manner described in the Original IGA. F. To allow for the transportation and use of the recovered water, each of the Parties desires to participate in the operation and maintenance of the NWRRDS project in the manner described in the Original IGA. G. Each of the Parties now desires to take advantage of the economies of scale and to avoid potential construction conflicts by adding additional partnered water facility construction to the NWRRDS Project, to be constructed by the Project Contractor, administered by Oro Valley, and paid for by the Parties. H. The Parties are authorized to contract for services and enter into agreements with one another for joint and cooperative action pursuant to A.R.S. § 11-952, et seq. 00076451.DOCX /1 2 DEFINITIONS As used in this IGA, the following terms, when capitalized, have the meanings indicated: 1. “Authorized Representative” means the individual, as set forth in Section 6.1 of the NWRRDS IGA. 2. “Construction Work” or the “Project” means all work associated under this IGA associated with constructing the additional partnered water facility infrastructure, including but not limited to, all planning, permitting, construction, reconstruction, contract preparation, purchasing, supervision, inspection, accounting and implementation, testing and start-up for the Project as detailed in Exhibits A, B and C, of this IGA, attached to and incorporated by this reference in this IGA, prior to the In-Service Date. 3. “Construction Costs” means the costs of performing Construction Work, as described in Section 7 of the NWRRDS IGA. 4. “Force Majeure Event” means any event beyond the reasonable control of a Party, including but not limited to failure of or threatened failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority, and action or non-action by or failure to obtain the necessary authorizations or approvals from any governmental agency or authority not a Party to this IGA, which by exercise of due diligence such Party could not reasonably have been expected to avoid and which by exercise of due diligence it shall be unable to overcome. 5. “In-Service Date” has the meaning set forth in Section 1.12 of the NWRRDS IGA. 6. “Notice of Withdrawal” means the written notice that a Party is withdrawing from this IGA. 7. “NWRRDS” or “Northwest Recharge, Recovery, and Delivery System” means the water delivery system, which is composed of, but not limited to, a pipeline, certain land rights, certain well sites, and the forebay site, all as described in Exhibit A of the NWRRDS IGA. 8. “NWRRDS Committee” means the committee established pursuant to Section 6 of the NWRRDS IGA. 9. “NWRRDS Project” means the construction work or project described in the NWRRDS IGA. 10. “Parties” means collectively, MDWID, Marana, and Oro Valley. Each may be referred to as a “Party.” 11. “Project Contractor” means the contractor selected to construct the Project as described in this IGA and shown in Exhibits A, B and C. 00076451.DOCX /1 3 12. “Project Inspector” means the inspector employed by Oro Valley to ensure the Project Contractor performs work in accordance with the contract documents. The Project Inspector also includes agents hired by Oro Valley to perform construction inspection services. 13. “Project Manager” means the manager employed by Oro Valley to manage the Project as described in this IGA. 14. “Third Party Liability” means any liability arising from a claim brought by a third party not a Party to this IGA in relation to the Construction Work of the Project. AGREEMENT NOW, THEREFORE, based on the foregoing recitals, which are incorporated by reference herein, and in consideration of the matters and agreements set forth in this IGA, the Parties hereby agree as follows: 1. Purpose. This IGA is intended as a supplement to the NWRRDS IGA, to address only those MDWID, Marana and Oro Valley facilities constructed as part of the Project pursuant to this IGA. Each Party shall retain ownership of its portion of the facilities that are constructed as part of the Project under this IGA (as described in Section 2 and Exhibits A, B and C) and shall be responsible for the operation and maintenance of its respective facilities constructed as part of the Project under this IGA. 2. The Project. The scope of the Project shall include the construction of the following: 2.1. MDWID Facilities: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit A. More specifically the scope of the MDWID portion of the Project includes all work shown between Sta: 0+00 to Sta: 19+30. At Sta: 19+30 provide a 16-inch MJ cap with a 3-inch DVA. All work is shown in detail in Exhibit A. 2.2. Marana Facilities: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit B. More specifically the scope of the “Marana” portion of the Project includes all work shown between Sta: 200+00 to Sta: 218+80. At Sta: 218+80 provide a 12-inch MJ cap with 3-inch DVA. All work is shown in detail in Exhibit B. 2.3. Oro Valley Facilities: A booster station, suction piping, discharge piping, transmission main and related work as shown in detail in Exhibit C. More specifically the scope of the “Oro Valley” portion of the Project includes all work shown between Sta: 0+00 to Sta: 19+00. At Sta: 19+00 provide a 16-inch MJ cap with 3-inch DVA. All work is shown in detail in Exhibit C. 3. MDWID responsibilities. MDWID shall: 3.1. Pay for 1/3 of the cost for incorporation of the MDWID design plans into the integrated partnered final design plans of Marana and Oro Valley under this IGA. 3.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid 00076451.DOCX /1 4 schedule for elements common to all Parties under this IGA. 3.3. Pay for 100% of the cost to integrate the MDWID work into the Parties’ specifications and bid schedule for those specifications and bid items unique to the MDWID Work and not covered in the Parties’ specifications and bid schedule under this IGA. 3.4. Pay for all permitting necessary for the Project Contractor to construct the MDWID work under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for permitting costs associated with the MDWID Work and providing MDWID with supporting invoices and time sheets, if applicable. 3.5. Prior to the commencement of the Construction Work, MDWID shall pay for and provide the Project Manager with all required “PDEQ Approval to Construct” regulatory permits associated with the MDWID related portion of the Construction Work. 3.6. Pay for the construction of the MDWID Work performed by the Project Contractor under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for Construction Costs associated with the MDWID Work and providing MDWID with copies of supporting vendor invoices and time sheets, if applicable. 3.7. Pay for the project management of the MDWID Work performed by the Project Manager under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for project management services associated with the MDWID Work. 3.8. Pay for the construction inspection of the MDWID Work performed by the Project Inspector and its agents by paying within 7 calendar days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for construction inspection services associated with the MDWID Work. 3.9 MDWID shall submit Oro Valley provided documentation to obtain PCDEQ “Approval of Construction” certification for the MDWID portion of the Work. 4. Marana responsibilities. Marana shall: 4.1. Pay for 1/3 of the cost for incorporation of the Marana design plans into the integrated partnered final design plans of the MDWID and Oro Valley under this IGA. 4.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid schedule for elements common to all Parties under this IGA. 00076451.DOCX /1 5 4.3. Pay for 100% of the cost to integrate the Marana work into the Parties’ specifications and bid schedule for those specifications and bid items unique to the Marana Work and not covered in the Parties’ specifications and bid schedule under this IGA. 4.4. Pay for all permitting necessary for the Project Contractor to construct the Marana work under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for permitting costs associated with the Marana Work and providing Marana with supporting invoices and time sheets, if applicable. 4.5. Prior to the commencement of the Construction Work, Marana shall pay for and provide the Project Manager with all required “PDEQ Approval to Construct” regulatory permits associated with the Marana related portion of the Construction Work. 4.6. Pay for the construction of the Marana Work performed by the Project Contractor under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice showing the breakdown of charges for each invoice for Construction Costs associated with the Marana Work and providing Marana with copies of supporting vendor invoices and time sheets, if applicable. 4.7. Pay for the project management of the Marana Work performed by the Project Manager under this IGA within 7 calendar days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for project management services associated with the Marana Work. 4.8. Pay for the construction inspection of the Marana Work performed by the Project Inspector and its agents by paying within 7 calendar days of receipt from Oro Valley of an itemized invoice and supporting documentation including timesheets for each pay period for each invoice for construction inspection services associated with the Marana Work. 4.9 Marana shall submit Oro Valley provided documentation to obtain PCDEQ “Approval of Construction” certification for the Marana portion of the Work. 5. Oro Valley responsibilities. Oro Valley shall: 5.1. Pay for 1/3 of the cost for incorporation of the Oro Valley design plans into the integrated partnered final design plans of the MDWID and Marana under this IGA. 5.2. Pay for 1/3 of the cost to develop a combined set of specifications and bid schedule for elements common to all Parties under this IGA. 5.3. Pay for 100% of the cost to integrate the Oro Valley work into the Parties’ 00076451.DOCX /1 6 specifications and bid schedule for those specifications and bid items unique to the Oro Valley Work and not covered in the Parties’ specifications and bid schedule under this IGA. 5.4. Pay for all permitting necessary for the Project Contractor to construct the Oro Valley work under this IGA. 5.5. Prior to the commencement of the Construction Work, Oro Valley shall pay for all required “PDEQ Approval to Construct” regulatory permits associated with the Oro Valley related portion of the Construction Work. 5.6. Pay for the construction of the Oro Valley work performed by the Project Contractor for Construction Costs associated with the Oro Valley Work. 5.6. Pay for the project management of the Oro Valley work performed by the Project Manager under this IGA for project management services associated with the Oro Valley work. 5.7. Pay for the construction inspection of the Oro Valley work performed by the Project Inspector and its agents for construction inspection services associated with the Oro Valley work. 5.8. Perform the following design plan preparation, procurement, project management and construction inspection services for the work detailed in Exhibits A, B and C. 5.8.1. Provide design plan integration services to aggregate the Parties’ design plans, specifications and bid schedules in a single bid document suitable for bidding. 5.8.2. Provide cost proposals to accomplish the items in Section 5.8.1 to the NWRRDS Committee for review prior to authorization of the work. 5.8.3. Provide procurement services in accordance with applicable law. This scope of work includes preparation of procurement language, contract documents, advertising for competitive bidding, evaluation of bids and award of contract for the Construction Work under this IGA. A. Provide procurement language and contract documents to the NWRRDS Committee for review prior to bidding. B. Provide tabulated bid results to the NWRRDS Committee for review prior to contract award. 5.8.4 Other matters as set forth in this IGA or as brought to the NWRRDS Committee by Oro Valley. 00076451.DOCX /1 7 5.8.5 Provide Project Manager services on behalf of the Parties to include the following: A. Management of the Construction Work. B. Scheduling and preparation of review materials for NWRRDS Committee meetings. C. At each meeting of the NWRRDS Committee, supply the NWRRDS Committee with information on any matters which may substantially affect the construction of the Project. D. Review and approve Project Contractor invoicing. E. Prepare and distribute a monthly statement to each Party specifying expenditures for the prior month for that Party, and the distribution of these expenditures to each participating Party. F. Obtain all permits, licenses, approvals, contracts and insurance as required to perform and complete all Construction Work, except for the permits as described in 3.5 and 4.5. G. Follow Generally Accepted Accounting Principles (GAAP), Governmental Accounting Standards Board (GASB), Arizona Revised Statutes (ARS) and engineering practices. H. Prior to construction of the Project, Oro Valley shall provide a proposed construction budget to the other Parties. The budget shall include each Party’s estimated share of the costs. Each budget shall be submitted to the NWRRDS Committee for review. I. Approve change orders in accordance with this subsection. 5.8.5.I.1 All change orders shall be discussed during regularly scheduled meetings during the construction of the Project. The meetings shall be attended by a representative of each Party appointed by the Authorized Representative for that Party. The frequency of the meetings shall be determined by the representatives of the Parties. In the event of disagreements, the issue shall be brought before the NWRRDS Committee and a decision shall be made by a vote of the Parties in accordance with section 6.6 of the NWRRDS IGA. 00076451.DOCX /1 8 5.8.5.I.2. Oro Valley may authorize change orders on behalf of that Party’s portion of the Project if the aggregated increased cost of all change orders for the affected Party is less than five percent (5%) of that Party total project award amount. If the aggregated change orders are greater than 5% of the affected Party’s total project award, Oro Valley shall provide notice of the change order to the Party’ and shall provide it in advance of the meeting where the change order will be considered. Oro Valley shall authorize such change orders if the change order is approved by those representatives of the Parties in attendance at the meeting where the change order is considered, provided that a Party may provide written approval of or objection to the change order in lieu of attending the meeting. 5.8.5.I.3. Notwithstanding subsection 5.8.5.I.2, if Oro Valley determines that a change order involves a safety issue, an emergency, or that allowing time for consideration of the change order at a meeting would cause a significant increase in costs associated with the change order, Oro Valley may authorize the change order prior to the meeting and shall notify the Parties of the change order as soon as practicable. J. The Project Manager shall maintain records, documents, plans and information directly or indirectly pertinent to the performance of the Construction Work under this IGA in accordance with applicable Arizona records retention schedules. The Parties shall have access to all records for the purpose of inspection, audit and copying during normal business hours for as long as the records are maintained. 5.8.6. Provide project inspection services on behalf of the Parties to include the following: A. Inspection services will be performed by the Project Inspector or its agent. B. Other types of inspection services will include special inspections for geotechnical work, reinforcing steel grade and placement, certification of concrete strength, etc. Costs for inspection services will be shared equally between Parties. C. It is understood that the other Parties’ in-house inspection, engineering, project management staff or their representatives may visit the Project site from time to time. At no time are the Parties’ staff other than the Project Inspector or Project Manager permitted to provide direction to the Project Contractor or the Project Contractor’s agents. All Project concerns shall be brought to the attention of the Project Inspector or Project Manager for discussion and resolution. 00076451.DOCX /1 9 5.8.7. Notwithstanding anything to the contrary in this IGA, if Oro Valley determines that any issue during the construction of the Project involves a safety issue or an emergency, as determined by Oro Valley in its reasonable discretion, Oro Valley may take action to address such issue. Such action will be reported to the Authorized Representative for each Party in a timely manner. 5.8.8. Provide Sealed As-Built files in electronic PDF form to MDWID and Marana upon completion of the work. 5.8.9 Provide Parties with Operations and Maintenance Manuals (hard and electronic), any spare parts as specified in the specification and field training as specified in the contract documents. 5.8.10 Provide Parties with copies of all reports necessary for Parties to obtain PCDEQ “Approval of Construction” certification. 6. Commissioning of Facility. 6.1. The startup and commissioning of the Parties’ facilities shall be scheduled by the Project Manager and respective Party. The Project Manager will coordinate the startup date and time with the Project Contractor. 7. Warranty. 7.1. The project warranty shall remain in effect until the second anniversary of final payment to the Project Contractor. Warranty claims with respect to the Parties’ facilities constructed under this IGA shall be made in writing to the Project Manager. A representative of the affected Party shall work closely with the Project Manager to ensure that warranty work meets the performance standard of the contract documents. 8. Term and Withdrawal. 8.1. This IGA shall become effective once fully executed and shall continue in effect until the second anniversary of final payment to the Project Contractor. Oro Valley will record the fully executed original with the office of the Pima County Recorder. 8.2. The Parties may terminate this IGA at any time by providing a Notice of Withdrawal to all Parties 8.3. Upon ninety (90) days’ written notice, a Party may withdraw from this IGA subject to the following. 8.3.1 Notwithstanding anything to the contrary in this Agreement, (i) if a 00076451.DOCX /1 10 Party, at the sole discretion of the Party, withdraws from this Agreement prior to the award of the construction contract, the Party shall be responsible for any and all additional costs related to the revised and modified aggregation of the design plans and specifications of the Partnered water facility construction as described in Section 2 and Exhibits A, B and C; and (ii) if a Party withdraws from this Agreement after the award of the construction contract the withdrawing Party shall be responsible the completion of its respective infrastructure construction as described in Section 2 and Exhibits A, B and C. 8.4. Any party withdrawing from this IGA is responsible for financial impacts and damages attributable to its own conduct and actions even after the party withdraws from the IGA. 9. Construction of this IGA 9.1 Entire Agreement. This instrument constitutes the entire agreement between the Parties pertaining to the subject matter of this IGA. 9.2. Exhibits. Any exhibits to this IGA are incorporated in this IGA by this reference. 9.3. Amendment. This IGA may be modified, amended, altered, or changed only by written agreement signed by all Parties. 9.4. Construction and interpretation. All provisions of this IGA shall be construed to be consistent with the intention of the Parties as expressed in the Recitals section of this IGA. 9.5. Severability. A declaration by statute or judicial decision that any provision of this IGA is invalid or void shall have no effect on other provisions that can be given effect without the invalid or void provision, and to this extent the provisions of this IGA are severable. If any provision of this IGA is declared invalid or void, the Parties agree to meet promptly in an attempt to reach an agreement on a substitute provision. 9.6. Conflict of interest. This IGA is subject to the provisions of A.R.S. § 38-511, which provides for cancelation in certain instances involving conflicts of interest. 10. Legal Jurisdiction. Nothing in this IGA shall be construed as either limiting or extending the legal jurisdiction of the Parties. 11. No Joint Venture. It is not intended by this IGA to, and nothing contained in this IGA shall be construed to, create any partnership, joint venture or employment relationship between the Parties or create any employer-employee relationship between one Party and another Party’s employees. Except as expressly set forth in this IGA, no Party shall be liable for any debts, accounts, obligations, or other liabilities whatsoever of another 00076451.DOCX /1 11 Party, including (without limitation) another Party’s obligation to withhold Social Security and income taxes for itself or any of its employees. 12. No Third-Party Beneficiaries. Nothing in the provisions of this IGA is intended to create duties or obligations to or rights in third parties not parties to this IGA or to affect the legal liability of either Party by imposing any standard of care different from the standard of care imposed by law. 13. Compliance with Laws. The Parties shall comply with all applicable federal, state, and local laws, rules, regulations, standards, and executive orders, without limitation to those designated within this IGA. 13.1. Anti-Discrimination. The provisions of A.R.S. § 41-1463 and Executive Order Number 99-4 issued by the Governor of the State of Arizona are incorporated by this reference as a part of this IGA. 13.2. Americans with Disabilities Act. This IGA is subject to all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. 13.3. Workers’ Compensation. An employee of either Party shall be deemed to be an “employee” of both public agencies, while performing pursuant to this IGA, for purposes of A.R.S. § 23-1022 and the Arizona Workers’ Compensation laws. The primary employer shall be solely liable for any workers’ compensation benefits, which may accrue. Each Party shall post a notice pursuant to the provisions of A.R.S. § 23-1022(E) in substantially the following form: All employees are hereby further notified that they may be required to work under the jurisdiction or control or within the jurisdictional boundaries of another public agency pursuant to an intergovernmental agreement or contract, and under such circumstances they are deemed by the laws of Arizona to be employees of both public agencies for the purposes of workers’ compensation. 14. Insurance 14.1 Unless otherwise specified by the NWRRDS Committee pursuant to Section 14.2, Oro Valley shall require any party performing Design and Construction Work to procure and maintain in force during the performance of Design and Construction Work as applicable, all required Construction Insurance as set forth in Exhibit D. Any required general liability policy required hereunder shall name the Parties as additional insureds. Proof of insurance satisfactory to Oro Valley shall be submitted to Oro Valley before any Design and Construction Work commences. 14.2 The NWRRDS Committee may, at any time, increase the policy limits 00076451.DOCX /1 12 and/or determine appropriate deductibles or retentions. Action by the NWRRDS Committee shall be by vote in accordance with Section 6.6 of the NWRRDS IGA. In the event the NWRRDS Committee is unable to agree upon any insurance matters, the Operating Agent, pending the resolution of such disagreement, may procure or cause to be procured, such policies of insurance as in its best judgment are necessary and required to protect the Parties. 14.3 Oro Valley, as the lead agency with respect to this IGA shall include each Party as an additional insured on Oro Valley’s insurance policy during the term of this IGA. 15. Waiver. Waiver by any Party of any breach of any term, covenant or condition of this IGA shall not be deemed a waiver of any other term, covenant or condition, or any subsequent breach of the same or any other term, covenant, or condition of this IGA. 16. Force Majeure. A Party shall not be considered in default under this IGA (other than obligations of said Party to pay costs and expenses) when a failure of performance is due to a Force Majeure Event. 17. Authorization and Approvals. 17.1. Each Party shall be responsible for obtaining, at its own expense, any authorizations and approvals required for its participation or its performance under this IGA, and each Party shall keep the other Parties informed of its applications therefor and authorizations issued in connection therewith. 17.2. A Party’s failure to make sufficient appropriations to contribute its share of costs in accordance with this IGA will be treated as a Notice of Withdrawal by that Party. 18. Governing Law; Disputes 18.1. This IGA shall be governed by the laws of the State of Arizona. 18.2. If there is a dispute between the Parties arising under this IGA, the Parties agree that they shall first attempt to resolve the dispute by working together in good faith to come to a consensus. If that fails, the Parties agree that they shall take a vote on the disputed issue through their Authorized Representatives with each Party having one vote and the issue being decided by a majority of the votes. Any Party that brings a lawsuit against another Party or Parties and that does not prevail, shall pay all fees and courts costs, including attorneys' fees, incurred by the other Party or Parties (as applicable) to this IGA in that lawsuit. 00076451.DOCX /1 13 19. Notices 19.1 Except as set forth in Section 18.2, any notice, demand or request provided for in this IGA shall be in writing and shall be deemed properly served, given or made if delivered in person or sent by registered or certified mail, postage prepaid, to the persons specified below: A. Informal communications of a routine nature involving NWRRDS Committee matters shall be made in such manner as the NWRRDS Committee shall arrange. B. Any Party may, at any time, by notice to all other Party, designate different or additional persons or different addresses for the giving of notices hereunder. Town of Oro Valley Water Utility: 11000 N. La Cañada Dr. Oro Valley, AZ 85737 Attn: Director of Oro Valley Water Utility Town of Marana: Office of the Town Clerk 11555 W. Civic Center Dr. Marana, AZ 85653 Attn: Director of Town of Marana Water Department Metropolitan Domestic Water Improvement District: 6265 N La Cañada Drive Tucson Arizona, 85704 Attn: General Manager 00076451.DOCX /1 14 TOWN OF MARANA TOWN OF ORO VALLEY Ed Honea, Mayor Joseph Winfield, Mayor Date: Date: ATTEST ATTEST Town Clerk Michael Standish, Town Clerk Date: Date: METROPOLITIAN DOMESTIC WATER IMPROVEMENT DISTRICT _____________________________ Judy Scrivener, Chair of the Board Date: ATTEST ______________________________ Clerk of the Board 00076451.DOCX /1 15 INTERGOVERNMENTAL AGREEMENT DETERMINATION The foregoing intergovernmental agreement among the METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT, the TOWN OF MARANA, and the TOWN OF ORO VALLEY has been reviewed pursuant to A.R.S. § 11-952 by the undersigned, who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to the Party to this intergovernmental agreement represented by the undersigned. METROPOLITAN DOMESTIC WATER IMPROVEMENT DISTRICT: Legal Counsel Date: __________________ TOWN OF MARANA: Jane Fairall Town Attorney Date: __________________ TOWN OF ORO VALLEY: Tobin Sidles Oro Valley Legal Services Director Date: __________________ 00076451.DOCX /1 16 Exhibit “A” “MDWID” General Arrangement 00076451.DOCX /1 17 Exhibit “B” “Marana” General Arrangement 00076451.DOCX /1 18 Exhibit “C” “Oro Valley” General Arrangement 00076451.DOCX /1 19 EXHIBIT D [CONSTRUCTION INSURANCE REQUIREMENTS] D.1. General Terms. Contractor shall not commence work under the Construction Agreement until Contractor (i) has obtained at its expense all insurance required and (ii) has given Oro Valley a Certificate of Liability Insurance evidencing the type, amount, coverage, effective dates, and dates of expiration of the required policies and identifying Parties as additional insureds, loss payees and certificate holders, as applicable. The insurance policies shall be issued by an insurance company acceptable to the Oro Valley and lawfully authorized to do business in the State of Arizona. All insurance policies required, other than Worker’s Compensation and Employer’s Liability, shall name all Parties as additional insureds and loss payees, as applicable, on a primary, non-contributory basis, irrespective of any such insurance that all Parties might carry on its their own behalf. All insurance policies required shall provide that the policies will not be subject to cancellation, termination, or modification except after thirty (30) days prior written notice to Oro Valley and shall provide for waiver of subrogation against all Parties. Such required coverage shall remain in effect until the later of (i) final payment for the work under the Construction Agreement or (ii) termination of the Construction Agreement. D.2. Coverage. The Contractor shall purchase and maintain the following coverage during the term of the Construction Agreement: D.2.1. Commercial General Liability for claims of damage for bodily injury, accidental death, property damage, premises/operations (including fire, theft, vandalism, falsework, temporary buildings and debris removal), explosion/collapse, independent contractors, products/completed operations, contractual liability, personal injury and advertising liability and underground special hazards (including (i) injury to or destruction of wire, conduits, gas, water and petroleum pipes, electric, telephone, telegraph and signal cables, sewers, drains or any apparatus in connection therewith or any other matter, below the surface of the ground, arising from and during the use of mechanical equipment for the purpose of excavating or drilling or boring in streets or highways or otherwise; or injury to or destruction of property at any time resulting therefrom and (ii) liability arising out of collapse of or structural injury to any building, street or structure due to excavation, tunneling, pile driving, or coffeework, or moving, shoring, underpinning, raising or demolition of any building or structure or removal or rebuilding of any structural support thereof), on an occurrence basis with limits of liability not less than the following: General Aggregate $2,000,000 Each Occurrence $1,000,000 Fire Damage (any one fire) $50,000 Medical Expenses (any one person) $5,000 D.2.1.1. Automobile Liability for any Auto, Combined Single Limit (per occurrence) with $2,000,000 limits. D.2.1.2. Worker’s Compensation and Employer’s Liability at the current Arizona statutory minimums. D.2.1.3. Excess or Umbrella Liability Insurance. In the event Contractor does not have coverage with the above minimum limits, Contractor may obtain such coverage through an Excess or Umbrella Liability Policy.    Water Utility Commission 7. Meeting Date:09/13/2021   Submitted By:Danielle Tanner, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: Report only. Attachments Item 7 - Director's Report  Peter A. Abraham, P.E. Water Utility Director Water Utility Commission Meeting September 13, 2021 Oro Valley Water Utility Director’s Report Upcoming Meetings October 6, 2021 Town Council Regular Session Council Chambers 6 pm. October 20, 2021 Town Council Regular Session Council Chambers 6 pm. October TBD, 2021 Water Utility Field Trip Kai Farms Redrock GSF Time TBD Thank You