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Home My WebLink AboutPackets - Water Utillity Commission (50) AGENDA WATER UTILITY COMMISSION REGULAR SESSION November 13, 2023 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER ROLL CALL CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE SEPTEMBER 11, 2023 REGULAR SESSION MEETING MINUTES 2.UPDATE AND DISCUSSION ON THE COMMUNITY'S NEXT 10-YEAR ACTION PLAN KNOWN AS OV'S PATH FORWARD (M. SIMMS) 3.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) 4.UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITIES (D. ALLRED) 5.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) 6.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) 7.UPDATE AND DISCUSSION ON WATER RATES ANALYSIS (M. RALLIS) 8.DISCUSSION AND POSSIBLE ACTION ON CANCELLATION OF THE DECEMBER 2023 WATER UTILITY COMMISSION MEETING 9.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) 10.DIRECTOR'S REPORT 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. ADJOURNMENT POSTED: 11/08/2023 at 5:00 p.m. by mrs When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.” Water Utility Commission 1. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: REVIEW AND APPROVAL OF THE SEPTEMBER 11, 2023 REGULAR SESSION MEETING MINUTES RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with changes) the September 11, 2023 regular session meeting minutes. Attachments 9-11-23 DRAFT MINUTES D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION September 11, 2023 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER Chair Hitt called the meeting to order at 5:00 p.m. ROLL CALL Present: Alan Forrest, Vice Chair Patricia Olson, Commissioner Niranjan Vescio, Commissioner David Atler, Commissioner Kay Lantow, Commissioner Clarence Marek, Commissioner Greg Hitt, Chair Staff Present:David Allred, Operations Manager Mary Rallis, Water Utility Administrator Peter A. Abraham, Water Utility Director 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. There were no speakers. REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE AUGUST 14, 2023 REGULAR SESSION MEETING MINUTES Motion by Commissioner David Atler, seconded by Commissioner Patricia Olson Vote: 7 - 0 Carried 2.UPDATE AND DISCUSSION ON THE PARTNERED AND INDEPENDENT NWRRDS PROJECT (P. ABRAHAM) Water Utility Director Peter Abraham provided the following regarding an update on the NWRRDS Partnered project: The foundation of the NWRRDS Project NWRRDS partnered project update CMAR qualifications with 5 qualified candidates Two-step process Review committee will submit their scores on 9/17 Water Utility Director Peter Abraham provided the following update on the NWRRDS Independent Project: Oro Valley requires its own reservoir and booster station that will pump water into the E-Zone La Canada will have a two zone booster (check audio for this section) Independent portions that haven't been moved forward with are the partnered forebay reservoir and the Independent Booster Station 500,000 gallon reservoir Discussion ensued between the commission and Water Utility Director Peter Abraham. Vice Chair Forrest and Water Utility Peter Abraham discussed the amount of water distributed within the past year. Further discussion ensued between Commissioner Niranjan Vescio and Water Utility Director Peter Abraham regarding groundwater and CAP water and the amount of water being delivered to the community, and how much of the water is being stored. Discussion again ensued between Vice Chair Alan Forrest and Water Utility Director Peter Abraham. Commissioner Vescio asked for clarification on hydrogeology. Commissioner Tom Marek asked if Public Works is going to have some involvement in the project. Vice Chair Alan Forrest asked if CMAR is one project. 3.UPDATE AND DISCUSSION ON THE COLORADO RIVER WATER SHORTAGE IMPACTS (P. ABRAHAM) Water Utility Director Peter Abraham provided an update on the following: Reservoir levels have increased due to the rainfall Upper and lower basin states water entitlements In 2024, Oro Valley will be under a tier 1 CAP water reductions Discussion ensued between the Commission and Water Utility Director Peter Abraham regarding the Colorado River System. 4.DISCUSSION AND POSSIBLE ACTION REGARDING THE ARIZONA WATER BANK FIRMING AGREEMENT (P. ABRAHAM) Water Utility Director Peter Abraham provided information on the following: What the Arizona Water Bank is Who benefits from the Water Bank What the AZ Water Bank firming agreement is and what the process is to apply for it Agreement highlights Discussion ensued between the Commission and Water Utility Director Peter Abraham regarding the Arizona Water Bank firming agreement. Water Utility Director Peter Abraham presented the recommendation for Council to the commission approve the intergovernmental agreement between the Arizona Water Banking Authority and the Town of Oro Valley for Municipal and Industrial Firming. Motion by Commissioner David Atler, seconded by Commissioner Niranjan Vescio to approve the recommendation to Town Council to approve the intergovernmental agreement between the Arizona Water Banking Authority and the Town of Oro Valley for Municipal and Industrial Firming. Vote: 7 - 0 Carried 5.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER BOHEN) Town Councilman Timothy Bohen provided an update on the following: Conditional Use Permit was approved for a drive-through on La Canada 36 acre annexation in Moore and La Canada southwest Discussion ensued among the commission and Water Utility Peter Abraham. 6.DIRECTOR'S REPORT Water Utility Director Peter Abraham provided a report on the following: September Town Council meeting date SAWUA Forum reminder October Town Council meeting date October Water Utility Commission meeting Water News on the Colorado River System Reservoir Status Information on Water Conservation Grant Fund The NWRRDS program was selected for review on September 25, 2023 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. There were no public speakers. ADJOURNMENT Motion by Chair Greg Hitt, seconded by Commissioner Clarence Marek to adjourn the meeting at 5:57 p.m. Vote: 7 - 0 Carried I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the ____ day of ____________________, 2023. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2023. ___________________________ Maritza M Valenzuela Senior Office Specialist Water Utility Commission 2. Meeting Date:11/13/2023 Requested by: Bayer Vella, Community and Economic Development Submitted By:Milini Simms, Community and Economic Development SUBJECT: UPDATE AND DISCUSSION ON THE COMMUNITY'S NEXT 10-YEAR ACTION PLAN KNOWN AS OV'S PATH FORWARD (M. SIMMS) RECOMMENDATION: This item is for informational and discussion purposes only. EXECUTIVE SUMMARY: The path to Oro Valley's future begins now! Residents of all ages and experiences are encouraged to come together to discuss, collaborate, share ideas and listen to one another to renew the community's vision, goals and priorities for Oro Valley. This project was kicked-off with the broader community at the State of the Town on October 25. The plan, also known as a General Plan, is one of the community's most meaningful opportunities to guide town actions and get results and make their vision a reality. Community ownership and participation is critical to creating a plan that is reflective of the community but also stays relevant for a 10-year timeframe. Prioritizing residents' voices through an inclusive and accessible process was emphasized in the resident-driven Community Engagement Plan. The steps below were completed to ensure the guiding principles in the engagement plan are achieved. Preparations for the launch January - March 2023 (Community Engagement Plan) - In preparation for launching out to the broader community, a Community Engagement Plan was adopted by the Town Council. This award-winning plan was built by residents through an advisory group and a town-wide survey. It provides the foundation for this effort by identifying guiding principles, such as being accessible and inclusive, and the methods to engage the community online or at businesses, events, etc. March - September 2023 (Background Reports) - As part of the launch and ongoing outreach, short videos and facts about topics important to the community were created and will be released throughout the next 4 months on OVPathForward.com. The community is invited to read, watch and discuss topics such as housing, public safety, water, environmental conservation, and much more! September - October 2023 (Branding) - The resident advisory group regrouped to help shape the branding for this effort. Key aspects of the project's branding include showcasing Oro Valley's authentic beauty and exemplifying the community. The following tasks are part of the ongoing effort to have an inclusive and accessible process: Developing surveys Refining schedules to include a variety of engagement opportunities Assigning staff to specific engagement tools and events Designing and ordering promotional materials, such as flyers, brochures, stickers and more. Selecting and launching a new specialized and interactive website that features community engagement tools (e.g. discussion boards, polls, etc.). Recruiting volunteers and ambassadors to help spread the word and gather feedback Community engagement Over the next year, substantial community engagement will be conducted in-person and online through events, discussion or social media posts, surveys and more. Community participation and ownership is key to this effort to be successful and to producing an actionable plan that remains relevant for a 10 year timeframe. To start the conversation and develop the community's vision and guiding principles, the following three questions will be asked: What do you like best about Oro Valley? What do you think will be Oro Valley's biggest challenges in the next 10 years? What should Oro Valley be known for? These comments are just the start of many opportunities to learn from the community. Focused conversations about topics important to the community, such as housing, public safety, roadways, parks, the environment and water will occur over the next four months. Next steps This update is the first of many that will be presented to the Water Utility Commission. Routine updates will be provided throughout the next year to summarize key milestones, such as: Feedback from the community related to their vision, guiding principles and focused topics. Findings from a town-wide statistically-valid survey Reflecting the community's vision and guiding principles Over the next three years, the community will work on creating the next 10-year action plan. Volunteers and ambassadors are needed to help ensure everyone's voice is heard. Please signup to volunteer and join the conversation by going online or out in the community at restaurants, events, or shops now. Learn more at OVPathForward.com. BACKGROUND OR DETAILED INFORMATION: Please see the executive summary. FISCAL IMPACT: Not applicable. SUGGESTED MOTION: This item is for discussion and informational purposes only. Attachments ITEM 02- UPDATE AND DISCUSSIONN ON THE OV PATH FORWARD The community’s next 10-year plan 2 3 Routine updates about the community’s work 4 Feedback from focused topic area discussions Findings from Town- wide survey Community Vision & Guiding Principles Launching OV’s Path Forward ➢Community Engagement Plan ➢Prioritizes resident voices through an inclusive and accessible process ➢Background reports ➢Short summary videos, information sheets and discussion questions ➢Project identity and branding ➢Event schedules and staff assignments ➢Interactive website ➢Recruiting volunteers 5 www.OVPathForward.com 6 ➢Learn ➢Discuss ➢Connect ➢Collaborate ➢See results Everyone’s voice is needed! ➢Community members of all ages and interests ➢Focused discussions on topics important to OV ➢Participate now! Please provide your responses to the three questions on sticky notes and post to the appropriate board. ➢What do you like best about Oro Valley? ➢What do you think will be Oro Valley’s biggest challenges in the next 10-years? ➢What should Oro Valley be known for? 7 Ongoing Participation 8 ➢Join the online conversation: ➢www.OVPathForward.com ➢Facebook or Instagram – OVPathForward ➢Volunteer to help spread the word and gather feedback ➢Presentations to HOAs or other groups you participate in www.OVPathForward.com 9 Water Utility Commission 3. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 03- UPDATE AND DISCUSSION ON CIP PROJECTS Oro Valley Water Utility Update and Discussion on Capital Improvement Projects Lee Jacobs, P.E., C.P.M. Engineering Division Manager Water Utility Commission November 13, 2023 Rehabilitation of Well Casing, Pump, Well Head & Motor Rehabilitation work is ongoing to resolve casing patches; brush & bail complete Evaluation, selection and installation of new pump assembly Gyroscope survey to determine well alignment (deviation from center) - complete Motor assessment and reconditioning in process Well discharge head and upgrades done in 2018 with instrumentation and telemetry Well Rehabilitation of Well E-2 New Well Equipping Supplementing well field within the 10-164 system (TOV limits) Civil is 100% complete – pending division specifications Well equipping design complete – control panel design 100% with specifications 100% discharge line to existing water system Project anticipated to go to bid in last quarter of FY 23-24. Nakoma Sky Production Well New Well Design and Equipping Supplementing well field within the 10-164 system (TOV limits) Drill production well to 780 feet below surface 16” diameter casing Supplement “D” Zone water Project anticipated to go to bid in third quarter of FY 2023-2024 with Water JOC’s Remaining work: Well design is almost complete. Only pending item is the perimeter wall with coordination with the Historical Society Steam Pump Production Well Catalina Shadows and Palisades Area Design of Redundancy Water Line Benefits: ► Redundancy ►Elimination of dead ends ►Improved water quality ►Design is 100% complete ►Submitting to PDEQ for ATC ►Construction schedule was pushed back to early December to avoid holiday interruptions El Conquistador Subdivision Design of Redundancy Water Line Benefits: ►Redundancy ►Elimination of dead ends ►Improved water quality ►Emergency Preparedness ►Civil Design Complete and hydraulic work pending Increased Wheeling Capacity to Countryside Service Area Countryside Wheeling Station Upgrades Benefits: ►Redundancy ►Additional Capacity ►Use of Telemetry ►Monitoring ►Ability to operate remotely ►Plans complete ►Specifications for electrical expected to be complete in November ►JOC solicitation expected in the last quarter of 2023 Rancho Vistoso Booster Rehabilitation Replacement of booster pumps, motors, control panels, security and associated piping per OVWU Standard Detail New tank is ASME or Board Certified to operate as a pressure vessel - installed Improve safety for operators High efficiency vertical multistage centrifugal pumps (energy savings) Rancho Vistoso Booster Design & Construction Requested a quotation from our JOC contractors to provide reservoir relining Quote was received and PO issued to Contractor Pre-Construction expected in November 2023 and interior coating to be completed in March 2024 Big Wash 200,000-gallon reservoir relining project Design complete Project was bid and awarded. Construction expected to start late second quarter of 23/24. La Canada Two Zone (“F” & “G”) Booster Design Design Construction started June of 2023. Successful communication with neighbors. Neighborhood support for project. Construction ahead of schedule. NWRRDS Independent Booster Station & Forebay Reservoir NWRRDS Independent Booster Station & Forebay Reservoir NWRRDS Partnered Well Equipping, Pipeline & Reservoir Construction contract awarded Construction and final design expected to begin in early 2024 Discussion Water Utility Commission 4. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER OPERATIONS ACTIVITIES (D. ALLRED) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 04- UPDATE AND DISCUSSION ON WATER OPERATIONS David E. Allred Water Operations Manager Water Utility Commission November 13, 2023 Oro Valley Water Utility Update and Discussion on Water Operations Activities OVWU Water Operations 24 ADEQ certified operators are responsible for the O&M of the Oro Valley & Country Side potable water service areas: 46 active sites (wells, reservoirs, booster stations & CAP wheeling stations) 375 miles of water mains 2,394 fire hydrants 8,605 valves 36 PRV stations Over 21,000 metered service connections with AMI technology 149 water sampling stations Operations is responsible for the reclaimed water system: 7 active sites (reservoir, booster, lake feeds, & park irrigation) 15 miles of reclaimed water main OVWU Water Operations Additional Core Functions: Operate and monitor the SCADA system for potable and reclaimed systems Manage AZ811 locate request (11,461 for 2022) Complete customer service work order request (new meter installs, re-reads customer inquiries and other request from CSC) Maintain drinking water compliance sampling and reporting in accordance with SDWA Work closely with other OVWU groups (engineering and admin) and Town departments Water Operations Administration SCADA Upgrade to Ignition Software Update: 96% completion as of 11/2/2023 Live as of July 1, 2023 Final QA/QC with vendor that will include administrative training (IT & OPS) Water Operations Administration Emergency Response Plan Develop an Emergency Response Plan (ERP) in accordance with America’s Water Infrastructure Act of 2018 (AWIA) Section 2013(b). The Act requires community water systems serving populations greater than 3,300 to develop or update an ERP that incorporates findings of their risk assessment OVWU reviews and updates the ERP regularly. With the assistance of security consultants, all material is reviewed and updated to ensure compliance with AWIA requirements All OVWU Staff participate in tabletop exercises and simulated emergency situations. OVWU collaborates with TOV Emergency Management and IT staff to ensure Town requirements are met Water Operations Administration Remote 900MHz Radio Communications Upgrade: Upgrade needed to replace obsolete GE MDS 9810 to GE MDS Orbit Partnership with IT Advantage of the Orbit radio is increased communication channels Includes cellular communication capability – can be used for cameras Ethernet connectivity vs serial interface = faster response As of 11/2/23, reclaim radios have been upgraded Water Production Activities Big Wash Facility Improvements: Phase I – Install automated access through security card/badge readers Phase II – Replaced swing gate with rolling gate for improved security Phase III – Future building improvements Water Production Activities-ADC Inmate Work Program Program Obstacles: Public Works experienced a decline in inmate participation OVWU down to one day a week with 1 or 2 inmates Difficult to schedule and complete projects January 2024 – Proposing to enter into an IGA contract with Wilmot Correctional Facility Water Control Systems Activities Programmable Logic Controller and Instrumentation Upgrades: Project is needed to replace “legacy” remote instrumentation and PLCs ~48 remote sites require this upgrade 5-10 year replacement plan, approximately $5 million Water Distribution Activities Pressure Regulating Valve (PRV) Maintenance: Staff maintain all 36 PRV stations, which includes quarterly inspections and annual winterization Water Meter Operations Activities Water Meter Warranty Changeout: Over 600 meters changed out since January, 2023 Staff utilize Sprypoint software to update accounts in real-time Water Quality Activities Revised Lead and Copper Rule - Service Line Inventory: On August 4, 2022, EPA released Guidance for Developing and Maintaining a Service Line Inventory to support water systems with their efforts to develop inventories and to provide states with needed information for oversight and reporting to EPA. The guidance provides essential information to help water systems comply with the Lead and Copper Rule Revisions requirement to prepare and maintain an inventory of service line materials by October 16, 2024. OVWU Water Operations Discussion Water Utility Commission 5. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 05- UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS Water Utility Commission Meeting November 13, 2023 Oro Valley Water Utility Update & Discussion on Water Utility Financials Mary Rallis, C.P.A. Water Utility Administrator Financial Update – Fiscal Year 2023/24 - Revenues REVENUES Actuals Thru 10/31/23 Budget Notes Potable Water Sales $5,448,000 $14,681,000 Projected to meet budget. Reclaimed Water Sales $674,000 $1,379,000 Projected to meet budget. Groundwater Preservation Fees $953,000 $2,400,000 Projected to meet budget. Service Fees $307,000 $800,500 Projected to meet budget. TOTAL REVENUES $7,382,000 $19,260,500 Revenues are projected to meet or slightly exceed budget by fiscal year end. Financial Update – Fiscal Year 2023/24 - Expenses EXPENSES Actuals Thru 10/31/23 Budget Notes Personnel $1,144,735 $3,870,809 Projected to be below budget due to vacancy savings. Operations & Maintenance $2,695,212 $11,666,585 Projected to meet budget. Capital $225,525 $1,750,000 Projected to meet budget. Debt Service $3,646,748 $3,646,748 Debt service paid on 7/1/23. TOTAL EXPENSES $7,712,220 $20,934,142 Expenses projected to meet or be slightly below budget at fiscal year end. Customer Service Update – Thru 10/31/23 FY 2022/23 Thru 10/31/23 New meters installed 186 63 Customer base 21,300 21,363 Water Smart Registered Accounts 7,300 7,400 Customer Portal 8,200 9,120 Discussion Water Utility Commission 6. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 06- UPDATE AND DISCUSSION ON WATER RESOURCE USAGE Peter A. Abraham, P.E. Water Utility Director Water Utility Commission November 13, 2023 Oro Valley Water Utility Update & Discussion on Water Resource Usage Oro Valley Main Service Area January – September 2023 Water Use by Type Countryside Service Area January – September 2023 Discussion Discussion Water Utility Commission 7. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER RATES ANALYSIS (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 07-UPDATE AND DISCUSSION ON WATER RATES ANALYSIS Water Utility Commission November 13, 2023 Oro Valley Water Utility Update & Discussion on Water Rates Analysis for FY 2024-25 Mary Rallis, C.P.A. Water Utility Administrator Water Rates Update & Discussion Outline Purpose Water rate analysis goals Schedule Purpose Purpose In accordance with Mayor and Town Council Water Policies – II.A.2.b(4), an annual review of the revenue requirements and water rates is performed to ensure the long-term financial health of the Water Utility. Functions of the Oro Valley Water Utility Commission include reviewing and developing recommendations for water revenue requirements, water rates and fee structures. The Commission evaluates staff recommendations based on a rates analysis to ensure the recommendations meet Town policies and bond covenants. Develop water rates that generate sufficient revenue to: Water Rates Analysis Goals Meet revenue and cash reserve requirements Meet debt service coverage requirements Ensure revenue stability Maintain the overall financial health of the Utility The water rates shall also: Promote water conservation Be the minimum necessary to avoid rate shock Adapt to changing rate drivers and consumer trends Be equitable between customer classifications Recover the cost of service (Potable & Reclaimed) Tentative Schedule 11/xx/23 Finance Subcommittee Meeting - TBD 12/xx/23 Finance Subcommittee Meeting - TBD 01/08/24 WUC Meeting: - Update & Discussion on rates analysis 02/12/24 WUC Meeting: - Update & Discussion on rates analysis - Make recommendation to Town Council on proposed rates 03/06/24 Town Council: - Notice of Intent (NOI) to change water rates 03/07/24 Publish public hearing date on Town website: - Minimum 60-day notice prior to Public Hearing date 03/07/24 Publish NOI: - Minimum 20-day notice prior to Public Hearing date 06/05/24 Town Council: - Public Hearing (60 days from NOI) - Council considers adoption of water rate change 07/06/24 New rates become effective (30 days after adoption) Water Rates Analysis Discussion Water Utility Commission 8. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: DISCUSSION AND POSSIBLE ACTION ON CANCELLATION OF THE DECEMBER 2023 WATER UTILITY COMMISSION MEETING RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: Motion to cancel December's Water Utility Commission Meeting Water Utility Commission 10. Meeting Date:11/13/2023 Submitted By:Maritza Valenzuela, Water SUBJECT: DIRECTOR'S REPORT RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 10- DIRECTOR'S REPORT Peter A. Abraham, P.E. Water Utility Director Water Utility Commission Meeting November 13, 2023 Oro Valley Water Utility Director’s Report Upcoming Meetings November 15, 2023 Town Council Regular Session Council Chambers @ 6 p.m. December 6, 2023 Town Council Regular Session Council Chambers @ 6 p.m. December 11, 2023 Water Utility Commission Meeting Hopi Room @ 5 p.m. December 20, 2023 Town Council Regular Session Cancelled – Holiday Break January 3, 2024 Town Council Regular Session Council Chambers @ 6 p.m. January 8, 2024 Water Utility Commission Meeting Hopi Room @ 5 p.m. Water News – Upper Colorado Basin Snowpack Comparisons Water News - 2023 Colorado Snow Water Equivalent The Arizona Water Bank Firming Agreement Workshop Retreat – January 22-24, 2024 The Mayor, Town Manager, Water Utility Director, Community & Economic Development Director, and a handful of Town staff will be attending Hoping to find a Commissioner to attend See link: https://resilientwest.org/growing-water-smart/arizona See Video: https://www.youtube.com/watch?v=521BAuadiv8 Water Conservation Grant Fund Update The Water Conservation Grant Fund (WCGF) exists to provide financial resources to eligible entities for the purpose of conserving Arizona’s water supply. A wide range of projects and programs may be eligible for WCGF funding. Some examples include: Construction of groundwater storage facilities Community education initiatives about wise water use Projects to promote groundwater recharge and imported aquifer health Staff submitted an application for the NWRRDS program as a program facilitating coordinated water management, including groundwater storage and recovery. The Water Infrastructure Financing Authority (WIFA) staff approved the application to move forward to the Water Conservation Grant Fund Committee (WCGFC). The WCGFC approved the application to move forward to the WIFA board for consideration for funding approval. After much deliberation the WIFA board recommended that the Utility’s application be placed as a future agenda item for consideration at a future date. Thank You