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Home My WebLink AboutPackets - Water Utillity Commission (76) AGENDA WATER UTILITY COMMISSION REGULAR SESSION February 9, 2026 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 JANUARY 12, 2026 REGULAR SESSION MEETING MINUTES 2.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY) 3.DISCUSSION ON DRAFT WATER UTILITY ANNUAL REPORT (P. ABRAHAM) 4.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) 5.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) 6.UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED) 7.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM) 8.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: 02/05/26 AT 5:00 p.m. by ck 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:02/09/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: REVIEW AND APPROVAL OF THE JANUARY 12, 2026 REGULAR SESSION MEETING MINUTES RECOMMENDATION: N/A EXECUTIVE SUMMARY: BACKGROUND OR DETAILED INFORMATION: FISCAL IMPACT: SUGGESTED MOTION: I MOVE to approve (approve with changes) the January 12, 2026 regular session meeting minutes Attachments 1-12-26 WUC Draft Minutes D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION January 12, 2026 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 5:00 PM CALL TO ORDER Chair Niranjan Vescio called the meeting to order at 5:00 p.m. ROLL CALL Present: Niranjan Vescio, Chair Rebecca Badruddoja, Commissioner Steven Linder, Commissioner Alan Forrest, Commissioner Greg Hitt, Commissioner Joe Hornat, Commissioner Michael Smejkal, Commissioner Staff Present: Peter A. Abraham, Water Utility Director David Allred, Water Operations Manager Mary Rallis, Water Utility Administrator Councilmember Mary Murphy, Council Liaison Jeff Wilkins, Town Manager 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. No public speakers REGULAR SESSION AGENDA 1.REVIEW AND APPROVAL OF THE NOVEMBER 10, 2025 REGULAR SESSION MEETING MINUTES Motion by Commissioner Michael Smejkal, seconded by Commissioner Alan Forrest to approve the 1/12/26 Water Utility Commission Regular Session Meeting Minutes 1 Motion by Commissioner Michael Smejkal, seconded by Commissioner Alan Forrest to approve the November 10, 2025 Regular Session meeting minutes. Vote: 7 - 0 Carried 2.WELCOME NEW WATER UTILITY COMMISSIONERS (P. ABRAHAM) Water Utility Director Peter Abraham introduced the new Water Utility Commissioners, Rebecca Badruddoja and Steven Linder. All Commissioners provided a brief introduction. 3.NOMINATION AND ELECTION OF COMMISSION CHAIR EFFECTIVE JANUARY 13, 2026 Motion by Chair Niranjan Vescio, seconded by Commissioner Joe Hornat to nominate Michael Smejkel for the position of Committee Chair. Vote: 7 - 0 Carried 4.NOMINATION AND ELECTION OF COMMISSION VICE CHAIR EFFECTIVE JANUARY 13, 2026 Motion by Commissioner Alan Forrest, seconded by Chair Niranjan Vescio to nominate Joe Hornat for the position of Committee Vice-Chair. Vote: 7 - 0 Carried 5.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY) Councilmember Murphy provided the following updates: Upcoming Town Council meeting 6.UPDATE AND DISCUSSION ON POSSIBLE ACTION ON THE 2026 WATER UTILITY COMMISSION WORK PLAN (P. ABRAHAM) Water Utility Director Peter Abraham reviewed the proposed 2026 Water Utility Commission Work Plan, including the agenda items that may be discussed. Discussion ensued among the Commission and Water Utility Director Peter Abraham regarding the 2026 Water Utility Commission Work Plan and potential topics that may be added to the agenda. 7.REVIEW OF WUC RECOMMENDED WATER RATE CHANGES FOR FY 2026/2027 (P. ABRAHAM) Water Utility Director Peter Abraham provided background context and a review of the Water Rates Analysis. Water Utility Director Peter Abraham reviewed the following: Tentative Water Rate Analysis schedule General water rates analysis goals (promote financial stability and water conservation Water Rates analysis goals for the next fiscal year (26/27) Rate Model Input Data Assumptions that are consistent with the General Fund Assumptions Specific to the Water Utility Existing system capital projects 1/12/26 Water Utility Commission Regular Session Meeting Minutes 2 Rate Model Output Data Recommended base rate increases Proposed Rate Increases/Debt Service Ration & Cash Reserve Requirements Historical & Projected Potable Rate Increases by Year Potable Water Cost Comparisons to other service providers Discussion ensued among the Commission and Water Utility Director Peter Abraham regarding the Utility's water rates and financial requirements. 8.UPDATE, DISCUSSION AND POSSIBLE ACTION ON GROUNDWATER PRESERVATION FEE FY 2026/2027 (P. ABRAHAM) Water Utility Director Peter Abraham provided an update on the following: Background of the Groundwater Preservation Fee (GPF) Responsibility of the Groundwater Preservation Fee Proposed financial scenario pro forma for the Groundwater Preservation Fee. Discussion ensued among the Commission and Water Utility Director Peter Abraham regarding the Groundwater Preservation Fee. Motion by Commissioner Steven Linder, seconded by Commissioner Rebecca Badruddoja to make a recommendation to Council to not incfrease the Groundwater Preservation Fee. Vote: 7 - 0 Carried 9.UPDATE AND DISCUSSION ON WATER RESOURCES & DEVELOPMENT IMPACT FEES FOR FY 2026/2027 (P. ABRAHAM) Water Utility Director Peter Abraham provided the following information regarding Water Resources & System Development Impact Fees: Background and context of the Water Resource & System Development Impact Fee (WRSDIF) Proposed financial scenario pro forma for WRSDIF Discussion ensued among the Commission and Water Utility Director Peter Abraham regarding the Water Resource & System Development Impact Fees 10.DIRECTOR'S REPORT Water Utility Director Peter Abraham provided the following updates: Upcoming meetings CRWUA Conference Colorado River DCP Status (end of 2025) Colorado River System Reservoir Status Colorado River Basin Above Lake Powell Discussion ensued among the Commission and Water Utility Director Peter Abraham. ADJOURNMENT Motion by Commissioner Greg Hitt, seconded by Commissioner Michael Smejkal to adjourn the meeting at 6:27 p.m. Vote: 7 - 0 Carried 1/12/26 Water Utility Commission Regular Session Meeting Minutes 3 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 ____________________, 2026. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2026. ___________________________ Maritza M. Valenzuela Senior Office Specialist 1/12/26 Water Utility Commission Regular Session Meeting Minutes 4 Water Utility Commission 3. Meeting Date:02/09/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: DISCUSSION ON DRAFT WATER UTILITY ANNUAL REPORT (P. ABRAHAM) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Discussion on the draft 2026 Annual Report BACKGROUND OR DETAILED INFORMATION: Report that documents the Water Utility Commission actions, documents the Water Utility activities for the previous calendar year, and the finances for the previous fiscal year. FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 03- DISCUSSION ON DRAFT WATER UTILITY ANNUAL REPORT Presented by: Peter A. Abraham, P.E. Water Utility Commission Meeting February 9, 2026 Oro Valley Water Utility Discussion on Draft Water Utility Annual Report Outline • Called the “Water Utility Annual Report – April 2026” • Report documents Commission actions and Utility activities for calendar year 2025 as well as the finances for FY24-25 • Required by Article 15-4-5 of the Town Code • Report is prepared by the Water Utility staff • Commission reviews and comments on the report • Town staff renders the report to Town Council on behalf of the Commission • Report becomes a public document Contents • About the Water Utility Commission • Executive Summary • Water Resources • Regulatory • Engineering & Planning • Capital Projects • Customer Service • Water Conservation • Operations & Maintenance • Water Quality • Backflow Prevention • Security & Emergency Response • Finance Schedule 01/28/26 Draft report emailed to the Commission 02/18/26 Comments due to Maritza (mvalenzuela@orovalleyaz.gov) 03/9/26 Final presentation to the Commission and recommendation to render the report to the Town Council 03/20/26 Final adjustments to the report (if any) 03/27/25 Utility staff renders the report to Town Council on behalf of the Commission 03/31/25 Utility staff transmits the report to the Clerk’s office for public record notification Discussion Water Utility Commission 4. Meeting Date:02/09/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: QUARTERLY UPDATES ON WATER UTILITY CAPITAL IMPROVEMENT PROJECTS BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 04- 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 February 9, 2026 Pre-planning: developing a hydraulic model to manage demands and expectations to service the WSA H1 (WP-15) and I1 (WP-14). Operational Contingency plan – reservoir isolation and removal from service Purchase of relocatable reservoir for installation this fiscal year Reservoir Rehabilitation and Planning Water Plant 14 (WP-14) Reservoir Rehabilitation El Con PRV has shifted gears from a PRV to a 8” interconnection at the tennis courts due to unexpected water mains within project limits, including large golf course irrigation mains Now that we have an alignment (30% illustration) we will set up a meeting to present to HOA and Resort ownership The redundant feed will allow us to work on other parts of the system and have assurances that we will be able to provide uninterrupted service. The interconnect provides a permanent solution at a comparable cost On current schedule is to have 100% designed plans complete with PDEQ approvals by early April 2026 and construction to begin in late spring 2026. This will also coincide with golf course maintenance El Conquistador 8-inch Ductile Iron Pipe Interconnect Operations discovered a line shaft failure on June 11, 2025 A contractor was brought in to remove motor and pump. Well D-9 was purged and video logged Engineering took over on October 2, 2025, to work on equipping well with new pump and lowering pump Engineering has selected a new pump for this site and equipment has been ordered expected installation in late spring of 2026. PO for new pump was issued on January 6th, 2026. Lead time on pump is approximately 9 weeks Well D-9 Rehabilitation Part of NWRRDS Independent Project and project to extend additional water resources into our F1 and G1 Water Service Areas Contractor is 100% complete with construction of two zone booster facility and control building “F1” and “G1” Zone discharge lines within facility have been extended and connected All Testing has been completed and OVWU has accepted all construction of site and is now operating as designed La Canada Two Zone (“F” & “G”) Booster ConstructionBooster Station Construction Completed and Operational NWRRDS Partnered Transmission Main Project Construction is progressing – approximately 75 percent of main installed Construction clearing for partnered booster began late 2024 with reservoir constructed in March of 2025 Reservoir coatings completed April 2025 Suction piping currently being installed end of October 2025 – on booster site NWRRDS Partnered Reservoir and Booster Site at Twin Peaks and Lambert Lane NWRRDS Independent Twin Peaks Booster Station CMAR Delivery Method Oro Valley is lead agency coordinating all activity between Marana, Metro Water and OVWU Oro Valley will manage the construction of each Partners booster station, as well as lead on inspections Oro Valley will be reimbursed for expenses associated with Partner work Approximately 3600 LF of Transmission Main along with three boosters included with this portion of the project Work slated to begin in early February 2026 with 12 months construction period expected Question and Discussion Water Utility Commission 5. Meeting Date:02/09/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: QUARTERLY FINANCIAL UPDATES BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments ITEM 04- FINANCIAL UPDATES Water Utility Commission Meeting February 9, 2026 Oro Valley Water Utility Update & Discussion on Water Utility Financials Mary Rallis, C.P.A. Water Utility Administrator Financial Update – Fiscal Year 2025/26 - Revenues REVENUES Actuals Through 12/31/2025 Budget Notes Potable Water Sales $9,275,746 $17,070,000 Projected to meet or exceed budget. Reclaimed Water Sales $902,396 $1,441,000 Projected to meet or exceed budget. Groundwater Preservation Fees $1,454,851 $2,600,000 Projected to meet budget. Service Fees $443,590 $857,000 Projected to meet budget. TOTAL REVENUES $12,076,583 $21,968,000 Revenues projected to meet budget or exceed budget. Actuals are at 55% of budget. Financial Update – Fiscal Year 2025/26 - Expenses EXPENSES Actuals Through 12/31/25 Budget Notes Personnel $1,613,089 $3,985,725 Projected to be below budget due to vacancy savings. Operations & Maintenance $5,589,067 $12,277,175 Projected to meet budget. Capital $253,922 $1,602,639 Projected to be below budget. Debt Service $3,890,977 $3,890,977 Debt service paid on 7/1/25. TOTAL EXPENSES $11,347,055 $21,756,516 Expenses projected to be under budget due to personnel and capital savings. Customer Service Update – Through 12/31/25 FY 2024/25 Through 12/31/25 New meters installed 111 53 Customer base 21,609 21,662 Customer Portal 13,263 14,421 Discussion Water Utility Commission 6. Meeting Date:02/09/2026 Submitted By:Maritza Valenzuela, Water SUBJECT: UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED) RECOMMENDATION: N/A EXECUTIVE SUMMARY: QUARTERLY UPDATE OF WATER OPERATIONS ACTIVITIES, TO INCLUDE METER, DISTRIBUTION, PRODUCTION ACTIVITIES, AS WELL AS WATER CONSERVATION UPDATES BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: Attachments ITEM 06- UPDATE AND DISCUSSION ON WATER OPERATION ACTIVITIES David E. Allred Water Operations Manager Operator in Direct Responsible Charge Water Utility Commission February 9, 2026 Oro Valley Water Utility Update and Discussion on Water Operations Activities OVWU Water Operations 27 ADEQ Certified Operators are responsible for the O&M of the OV & CS potable water service areas: 41 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 Complete customer service work order request (new meter installs, manual reads, customer inquiries and other request from CSC) Maintain drinking water compliance sampling and reporting in accordance with the Safe Drinking Water Act (SDWA) Work closely with other OVWU groups (engineering and admin) and Town departments Water Operations Administration Reclaimed Facility Booster Rehabilitation: Booster station in service since 2004 Four pumps, motors, and discharge heads getting replaced with new equipment. Concrete pump cans getting video inspected Pre-con completed January 28, 2026 to finalize schedule Work starting February 17th – Completion on February 21 Water Production Activities Well C-5 Repairs: August 2025 – Oil tube unthreaded Pump and equipment pulled to determine cause 7 swedge patches, and new pump installed Water Production Activities Well D-9 Repairs: No pumping volume caused a low amperage shutdown Equipment pulled and cause of failure was a broken coupling on the drive shaft Two sonar-jet cleanings, brush and bail, and video scan completed Project turned over to Water Engineering October 2025 Water Production Activities-ADC Inmate Work Program Program Obstacles: OVWU down to one day a week with 1 or 2 inmates Limited to mostly landscape mitigation around water facilities Water Control Systems Activities Programmable Logic Controller and Instrumentation Upgrades: Project is needed to replace “legacy” remote instrumentation and PLCs FY 25-26, SCP panels for wells C-9, D-9, WP-13 and WP-15 Staff are continuing training and education on new PLC technologies Water Distribution Activities Distribution System Projects: In partnership with OVWU Engineering and GRFD, installing two new fire hydrants One on Linda Vista and one on Rancho Verde Completion planned for February 2026 Water Distribution Activities Distribution System Repairs: N Shore Cliff Dr and Brearley Dr - hydrant relocate due to leaking in-line valve Water Distribution Activities Distribution System Repairs: N Horizon Circle – Replaced a faulty mainline valve and hydrant valve Water Distribution Activities Distribution System Repairs: N Eddington Dr. – Mainline break repair Water Meter Operations Activities Meter Maintenance: Identifying meters manufactured 10+ years for replacement Goal is to replace 400-500 meters monthly Water Quality Activities Water System Compliance: Staff monitors the Arizona Safe Drinking Water Information System (AZSDWIS) continuously to ensure that the water systems are in compliance with the SDWA Water Conservation Activities Conservation Outreach: Oro Valley Night out - October 24, 2025 Saddlebrook Philanthropic Educational Organization (PEO) - October 27, 2025 State of the Town - October 30, 2025 (day) Oro Valley Community Academy - October 30, 2025 (night) Vistoso Village HOA - February 17, 2026 OVWU Water Operations Discussion Water Utility Commission 7. Meeting Date:02/09/2026 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 07- UPDATE AND DISCUSSION ON WATER RESOURCE USAGE Peter A. Abraham, P.E. Water Utility Director Water Utility Commission February 9, 2026 Oro Valley Water Utility Update & Discussion on Water Resource Usage Oro Valley Main Service Area Jan – Dec Water Use by Type Countryside Service Area Jan – Dec Water Use by Type Discussion Discussion Water Utility Commission 8. Meeting Date:02/09/2026 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 08- DIRECTOR'S REPORT Peter A. Abraham, P.E. Water Utility Director Water Utility Commission Meeting February 9, 2026 Oro Valley Water Utility Director’s Report Upcoming Meetings February 18, 2026 Town Council Regular Session Council Chambers @ 6 p.m. February 24, 2026 Water Utility Department Budget Meeting @ 9 a.m. March 2, 2026 Town Council Strategic Retreat Council Chambers @ 1 p.m.-5 p.m. March 4, 2026 Town Council Regular Session Council Chambers @ 6 p.m. March 9, 2026 Water Utility Commission Meeting Hopi Conference Room @ 5 p.m. Colorado River System Reservoir Status Colorado River Basin above Lake Powell Snow Acc. Snow accumulation as of 1/4/2026 is at 4.8 inches, which is 73% of the 30-year median for this date of 6.6 inches. Thank You