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HomeMy WebLinkAboutPackets - Water Utillity Commission (72)AGENDA WATER UTILITY COMMISSION REGULAR SESSION August 10, 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 MAY 1, 2026 STUDY SESSION MINUTES AND MAY 11, 2026 REGULAR SESSION MEETING MINUTES   2.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY)   3.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS)   4.UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED)   5.UPDATE AND DISCUSSION ON WATER QUALITY (D. ALLRED/A. PENCE)   6.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS)   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 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: 8/3/26 at 5:00 p.m. by ms 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:08/10/2026   Requested by: Peter Abraham, Water Submitted By:Meagan Ackerson, Water SUBJECT: REVIEW AND APPROVAL OF THE MAY 1, 2026 STUDY SESSION MINUTES AND MAY 11, 2026 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 the May 1, 2026 study session minutes. I MOVE to approve the May 11, 2026 regular session minutes.   Attachments 5-1-26 Draft Minutes  5-11-26 Draft Minutes  D R A F T MINUTES WATER UTILITY COMMISSION REGULAR SESSION May 11, 2026 HOPI CONFERENCE ROOM 11000 N. LA CAÑADA DRIVE         REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER Chair Michael Smejkal called the meeting to order at 5:02 p.m.   ROLL CALL Present: Joe Hornat, Vice Chair Steven Linder, Commissioner Niranjan Vescio, Commissioner Michael Smejkal, Chair Absent: Rebecca Badruddoja, Commissioner Alan Forrest, Commissioner Greg Hitt, Commissioner Staff Present: Peter A. Abraham, Water Utility Director Mary Rallis, Water Utility Administrator David Allred, Water Operations Manager Lee Jacobs, Water Engineering Division Manager Daniel Mance, Water Conservation Specialist Attendees: Mary Murphy, Council Liaison  Commissioners Badruddoja, Forrest and Hitt were excused. Councilmember Murphy was excused from the meeting at 5:16 p.m.   CALL TO AUDIENCE There were no speaker requests.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE MARCH 9, 2026 REGULAR SESSION MEETING MINUTES   Motion by Vice Chair Joe Hornat, seconded by Commissioner Steven Linder to approve the March 9, 2026 05/11/26 Water Utility Commission 1 Motion by Vice Chair Joe Hornat, seconded by Commissioner Steven Linder to approve the March 9, 2026 meeting minutes. Vote: 4 - 0 Carried   2. UPDATE AND DISCUSSION ON THE MAY WATER UTILITY COMMISSION FIELD TRIP (P. ABRAHAM)    Water Utility Director Peter Abraham P.E. provided an update regarding the May Water Utility Commission field trip that consisted of visiting the NWRRDS partnered and independent projects. Schedule of Events Summary of Field Trip Discussion ensued among the Commission and Mr. Abraham.   3.TOWN COUNCIL MEETINGS/COMMUNICATIONS (COUNCILMEMBER MURPHY)    Councilmember Mary Murphy provided the following updates: OV Path Forward final resident recommended draft on the ballot in November 2026 Oro Valley Community Center restroom accessibility NWRRDS Project progress continuing Oro Valley Marketplace construction continues on schedule   4.UPDATE AND DISCUSSION ON CAPITAL IMPROVEMENT PROJECTS (L. JACOBS)    Water Engineering Division Manager Lee Jacobs provided the following updates regarding the Water Utility's Capital Improvement Projects (CIP): Reservoir Rehabilitation and Planning Water Plant 14 (WP -14) Reservoir Rehabilitation El Conquistador 8-inch Ductile Iron Pipe Interconnect Well D-9 Rehabilitation La Canada Two Zone ("F" & "G") Booster Construction NWRRDS Independent Transmission Main Project NWRRDS Partnered Transmission Main Project NWRRDS Independent Twin Peaks Booster Station CMAR Delivery Method Oro Valley Water Engineering Division Arizona Water Engineer of the Year 2026 Mike Sanders, P.E. Discussion ensued among the Commission and Water Engineering Division Manager Lee Jacobs and Water Utility Director Peter A. Abraham.   5.UPDATE AND DISCUSSION ON WATER CONSERVATION PROGRAM (D. MANCE)    Water Conservation Specialist Daniel Mance provided the following updates regarding the Water Conservation Program: Water Monitoring Capabilities WaterSmart SpryIDM Water Audits Water Conservation Outreach 05/11/26 Water Utility Commission 2 Environmental Education Exchange (E3) OVPD National Night Out SaddlebBrooke Philanthropic Educational Organization (PEO) Women's Group Oro Valley Community Academy Presentation Oro Valley State of the Town and Oro Valley Volunteer Ceremony Vistoso Village HOA Sun City Vistoso Presentation   6.UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED)    Water Operations Manager David Allred provided an update on Water Operations Activities: Overview of Water Operations and additional core functions Water Operations Administration Reclaimed Facility Booster Rehabilitation Rural Water Association of Arizona 2026 Operator of the Year Jeffrey Kane Water Production Activities Well C-5 Repairs Well D-9 Repairs Update on ADC Inmate Work Program Water Control Systems Activities Programmable Logic Controller and Instrumentation Upgrades Rancho Vistoso Booster Station-2024 Big View Booster Station-2025 La Canada Reservoir and Booster Station-2025 Water Plant 13-2026 Water Plant 15-2026 Well C-9-2026 Future panels 2026-2027 Water Distribution Activities Distribution System Projects Water Meter Operations Activities Meter Maintenance Water Quality Activities Water System Compliance 2025 Consumer Confidence Report (CCR) Discussion ensued among the Commissioners and Water Operations Manager David Allred regarding Water Operations activities.   7.UPDATE AND DISCUSSION ON WATER UTILITY FINANCIALS (M. RALLIS)    Water Utility Administrator Mary Rallis provided financial updates on the following topics: Financial Update - Fiscal Year 2025/26 - Revenues Financial Update - Fiscal Year 2025/26 - Expenses Customer Service Update - Through 4/30/26   8.UPDATE AND DISCUSSION ON WATER RESOURCE USAGE (P. ABRAHAM)    Water Utility Director Peter Abraham provided the following water resource updates: Oro Valley Main Service Area Jan - March Water Use by Type Countryside Service Area Jan - March Water Use by Type 05/11/26 Water Utility Commission 3   9.DIRECTOR'S REPORT    Water Utility Director Peter Abraham provided the following updates: Upcoming Town Meetings Colorado River Systems Reservoir Status Colorado River Basin Snowpack Accumulation   10.DISCUSSION AND POSSIBLE ACTION ON CANCELLATION OF JUNE AND JULY WATER UTILITY COMMISSION REGULAR SESSIONS   Motion by Commissioner Niranjan Vescio, seconded by Vice Chair Joe Hornat to cancel the June and July Water Utility Commission Regular Sessions. Vote: 4 - 0 Carried   CALL TO AUDIENCE No public present   ADJOURNMENT   Motion by Commissioner Steven Linder, seconded by Commissioner Niranjan Vescio to adjourn the meeting at 6:19 p.m. Vote: 4 - 0 Carried     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session (special session) of the Town of Oro Valley Water Utility Commission of Oro Valley, Arizona held on the 11th day of May 2026. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Meagan Ackerson Senior Office Specialist 05/11/26 Water Utility Commission 4    Water Utility Commission 3. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, 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: Item is for update and discussion only.  Attachments CIP Update  Oro Valley Water Utility Update and Discussion on Capital Improvement Projects Lee Jacobs, P.E., C.P.M. Engineering Division Manager Water Utility Commission August 10, 2026 Capital Projects Scheduled and Completed in 2025-2026 El Con short main Model, design, ATC, bid out and constructed in FY 25-26. Eliminated two dead ends to improve water quality and added redundancy and system reliability to a previously limited feed Water Plant 14 Planning, modeling, purchasing and constructing of temporary reservoir to service pressure zones H1, I1 and G zone in preparation for rehabilitation of WP -14 interior and exterior coating Well D-9 Rehabilitation and equipping of well with new pump and motor NWRRDS 20-inch diameter and four plus miles long construction Construction of Partnered Boosters at Twin Peaks Facility NWRRDS – 30% complete Completion of Two Zone Booster at La Canada in support of the Utilities efforts to efficiently move water to F1 and G1 Zones Hydraulic model to manage demands and expectations to service the WSA H1 (WP-15) and I1 (WP-14) are complete Operational Contingency plan – reservoir isolation and removal from service early June 2026 Temporary relocatable reservoir is 100% complete in-place and disinfected and tested Reservoir Rehabilitation and Planning Water Plant 14 (WP-14) Reservoir Rehabilitation The El Con Short main design has been completed and constructed, and the Approval to Construct (ATC) and Approval of Construction (AOC) have been submitted to and approved by Pima County for the connections at Western Town/Last Territory and tennis courts. We have eliminated two dead ends and improved water quality, efficiency and reduced maintenance cost in these locations. 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 to ensure redundancy and system reliability. 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 as well as lowering pump. Engineering calculated new parameters for pump, reviewed pump curves and selected a new pump for this site and equipment has been installed and is operational. Installation is now completed with pump running and water going into the system. Work was completed on April 21, 2026 Well D-9 Rehabilitation A component 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 Independent Transmission Main ProjectConstruction is now completed from Shannon Road Booster to Blue Bonnet – approximately 4.2 miles of 20-inch main NWRRDS Partnered Transmission Main Project Construction is progressing – approximately 75 percent of main installed LF% Construction completed for partnered reservoir Santa Cruz Crossing schedule anticipated sometime in fall of 2026 Well equipping for recovery wells is approximately 75% complete NWRRDS Partnered Reservoir and Booster Site at Twin Peaks and Lambert Lane NWRRDS Partnered Reservoir and Booster Site at Twin Peaks and Lambert Lane NWRRDS Independent Twin Peaks Booster StationCMAR Delivery Method Project General Conditions and Value Engineering Finalized October 2025, Long lead time items have been ordered and expected to be ready to install once construction has begun for those items. 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. Capital Projects Scheduled for Fiscal Year 2026-2027 Well F-1 Rehabilitation Water Plant 14 Interior and Exterior Coating Big Wash 150k Reservoir interior coating only - possibly NWRRDS 20-inch main crossing Twin Peaks and connecting to Partnered Booster NWRRDS Completion of Construction of Partnered Boosters at Twin Peaks Facility Geophysical Investigation of El Conquistador Intersection – identify underground piping and valves Lambert Lane Hydropneumatic Tank Replacement - possibly Priority list for PRV evaluation going from below ground to above ground designs and logistics. Booster Planning and Rehab in-house designs: Big View Crimson Canyon Questions and Discussion    Water Utility Commission 4. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, Water SUBJECT: UPDATE AND DISCUSSION ON WATER OPERATIONS (D. ALLRED)  RECOMMENDATION: N/A  EXECUTIVE SUMMARY: N/A  BACKGROUND OR DETAILED INFORMATION: N/A  FISCAL IMPACT: N/A  SUGGESTED MOTION: Item for update and discussion only.  Attachments Water Operations Update  David E. Allred Water Operations Manager Operator in Direct Responsible Charge Water Utility CommissionAugust 10, 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: Currently have 5 vacant positions 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 requests (new meter installs, manual reads, customer inquiries and other requests 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 FY 2026/2027 Emergency Response Plan (ERP): COOP (Continuity of Operations Plan) – Update ERP – Add in facilities related the NWRRDS Water Production Activities Reservoir Inspections 2026: Annually, the water utility has seven reservoirs vacuum cleaned and inspected for structural and coating integrity. The intent is to have each reservoir within the water system inspected every three years. Shannon Road Reservoir (warranty inspection), Big Wash (East and West), Allied Signal, Deer Run, WP-15, Reclaimed 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 and maintenance around water facilities Water Control Systems Activities Programmable Logic Controller and Instrumentation Upgrades: Project is needed to replace “legacy” remote instrumentation and PLCs 10-year CIP project Water Control Systems Activities Completed Upgrades: Rancho Vistoso Booster - 2024 Big View Booster - 2025 La Canada Booster and Reservoir 2025 WP-13 – 2025 WP-15 – 2025 Well C-9 – 2026 Well D-9 – 2026 Water Control Systems Activities FY 2026/2027 Planned Upgrades: Big Wash – in planning - to be constructed in house by staff Copper Creek Station - staff will build panel and install Deer Run Reservoir - staff will build panel and install Naranja Facility - tentative depending on above projects and budget Water Distribution Activities Water System Maintenance and Repair: Hydrant maintenance is an essential component to ensure reliable fire flow Water Distribution Activities Water System Repairs and Maintenance: Valve collar repair Water Meter Operations Activities Meter Maintenance: Identifying meters manufactured 10 years and older for replacement Goal is to replace 400-500 meters monthly Pilot program with Kamstrup and Metron meters Metron – cellular meters – 100 meter pilot Kamstrup – AMI capable – 100 meter pilot Both manufacturers require integration with SpryPoint CIS Water Conservation Activities Water Conservation: WaterSmart discontinued July 2026 Replaced by SpryPoint IDM (Interval Data Management) Water Conservation Activities Water Conservation: Helping customers with leak audits - 4-8 a week Helping customers transition from WaterSmart to Spry IDM OVWU Water Operations Discussion    Water Utility Commission 5. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, Water SUBJECT: UPDATE AND DISCUSSION ON WATER QUALITY (D. ALLRED/A. PENCE)  RECOMMENDATION: N/A  EXECUTIVE SUMMARY: N/A  BACKGROUND OR DETAILED INFORMATION: N/A  FISCAL IMPACT: N/A  SUGGESTED MOTION: Item is for update and discussion only.  Attachments Staff Presentation  Oro Valley Water UtilityWater Quality Update Adam Pence, Water Operations Supervisor Oro Valley Water Utility Commission Meeting August 10, 2026 Overview Regulatory Agencies EPA Sampling Requirements Non-regulated Sampling 2025 Water Quality Results Backflow Prevention Questions Regulatory Agencies Environmental Protection Agency (EPA) Implemented the Safe Drinking Water Act (SDWA) in 1974 The SDWA identified the drinking water rules The SDWA is continually amended to expand regulated contaminants Arizona Department of Environmental Quality (ADEQ) Delegated authority by EPA to implement & enforce drinking water rules Enforces drinking water compliance Monitor and track water quality results Approves annual consumer confidence reports Monitoring Assistance Program (MAP) Tests and certifies water utility operators All personnel in the Operations Division of the Utility are certified operators EPA Sampling Requirements Water quality sampling frequency is determined by EPA drinking water rules The number of samples is determined by the size of the utility Table below shows Oro Valley’s sampling frequencies The following are not regulatory requirements: Non-Regulated Sampling Quarterly baseline sampling Performed to continually monitor water supply Fingerprint of water supply in event of contamination Quarterly blended CAP sampling Performed to continually monitor water received from other jurisdictions that is blended with Oro Valley ground water OVWU does not treat its water other than adding chlorine and blending Monitoring Changing Rules Other Sampling Information Staff must be diligent in monitoring the ever changing rules related to new and revised testing requirements. Recent changes: Revised Long Term Lead and Copper Rule October 2024-November 2027 Unregulated Contaminant Monitoring Rule (UCMR6) 2027-2031 2025 Consumer Confidence Reporting 2025 Water Quality Results Two consumer confidence reports prepared for Oro Valley Oro Valley Water Service Area www.orovalleyaz.gov/ovccr2025.pdf Countryside Water Service Area www.orovalleyaz.gov/csccr2025.pdf Reports are posted on Utility’s website Delivered to non-billing paying consumers Required language Drinking water sources Drinking water contaminants Vulnerable population concerns Definitions for water quality sampling results Contaminants sampled and results of sampling Report violations received Required sampling 4,681 samples collected in 2025 – no violations Backflow Prevention Program What is backflow prevention? Backflow is a reversal of flow in a water system The backflow prevention program is required by ADEQ and is designed to protect against system contamination resulting from a backflow incident. Backflow Assemblies Mechanical valve arrangement which is designed to prevent backflow or the reversal of flow of water once it has passed through the valve. There are different types of backflow prevention assemblies for different uses and different degrees of hazard. Backflow Prevention Program Compliance Monitoring OVWU is responsible, through delegated authority from ADEQ, to ensure compliance on all backflow assemblies (BFAs) in both water systems Cross Connection Control Program is part of the Safe Drinking Water Act Authority to enforce program comes from the Town’s Backflow Prevention Ordinance Responsible for compliance of over 1,500 active BFAs in Oro Valley Water systems Every BFA must be tested annually by a certified tester 125 Town-owned BFAs are tested, repaired and maintained by Water Quality staff Must maintain compliance records for 3 years on every BFA Monthly notifications for testing compliance delivered to BFA owners Survey, permit and inspect every new or replacement BFA Inspect for proper type, installation and record identifying information Permit 40-60 annually Survey existing BFA Construction meters or hydrant meters Approximately 30 month Future Plans Continued implementation of program software improvements Proactive outreach on backflow prevention education and requirements Replace aging Town-owned BFAs Backflow Prevention continued Questions? Questions    Water Utility Commission 6. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, 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: For discussion only.  Attachments Staff Presentation  Water Utility Commission Meeting August 10, 2026 Oro Valley Water UtilityUpdate & Discussion on Water Utility Financials Mary Rallis, C.P.A.Water Utility Administrator Financial Update – Fiscal Year 2025/26 - Revenues REVENUES Actuals Through 6/30/26 Budget Notes Potable Water Sales $17,374,000 $17,070,000 Exceeded budget by $304,000 primarily due to irrigation sales. Reclaimed Water Sales $1,461,000 $1,441,000 Exceeded budget by $20,000. Groundwater Preservation Fees $2,644,000 $2,600,000 Exceeded budget by $44,000. Service Fees $860,000 $857,000 Exceeded budget by $3,000. TOTAL REVENUES $22,339,000 $21,968,000 Revenues exceeded budget by $371,000. Financial Update – Fiscal Year 2025/26 - Expenses EXPENSES Actuals Through 6/30/26 Budget Notes Personnel $3,504,450 $3,985,725 Below budget by $481,275 due to vacancy savings. Operations & Maintenance $11,655,681 $12,277,175 Below budget by $621,494 due to cost savings in various budgets. Capital $1,236,883 $1,602,639 Below budget by $365,756. Debt Service $3,890,977 $3,890,977 Debt service paid on 7/1/25. TOTAL EXPENSES $20,287,991 $21,756,516 Expenses below budget by $1,468,525. Customer Service Update – Through 6/30/26 FY 2024/25 Through 6/30/26 New meters installed 111 122 Customer base 21,609 21,731 Customer Portal 13,263 16,011 Discussion    Water Utility Commission 7. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, 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: For discussion only.  Attachments Water Resource Usage  Peter A. Abraham, P.E.Water Utility Director Water Utility CommissionAugust 10, 2026 Oro Valley Water Utility Update & Discussion on Water Resource Usage Oro Valley Main Service Area Jan – June Water Use by Type Countryside Service Area Jan – June Water Use by Type Discussion Discussion    Water Utility Commission 8. Meeting Date:08/10/2026   Submitted By:Meagan Ackerson, Water SUBJECT: DIRECTOR'S REPORT  RECOMMENDATION: N/A  EXECUTIVE SUMMARY: N/A  BACKGROUND OR DETAILED INFORMATION: N/A  FISCAL IMPACT: N/A  SUGGESTED MOTION: This item is for information only.  Attachments Director's Report  Peter A. Abraham, P.E. Water Utility Director Water Utility Commission MeetingAugust 10, 2026 Oro Valley Water Utility Director’s Report Upcoming MeetingsAugust 12, 2026 Town Council Regular Session Council Chambers @ 6 p.m. September 2, 2026 Town Council Regular Session Council Chambers @ 6 p.m. September 14, 2026 Water Utility Commission Meeting Hopi Room @ 5 p.m. September 16, 2026 Town Council Regular Session Council Chambers @ 6 p.m. October 2, 2026 SAWUA Water Forum TCC @ 8 a.m. More details to come Water News - Colorado River System Reservoir Status July 6, 2025 June 28, 2026 Water News 2026 SAWUA Forum: Friday October 2nd @ 8am at the Tucson Convention Center More information to come at next WUC meeting Current Colorado River Drought Contingency Plan set to expire in October 2026: As of July 28, 2026 no new plan has been approved by the Bureau of Reclamation. Oro Valley submits water order in October and plans to order full allocation. MOU to explore framework for interstate water exchanges signed June 3, 2026 by: Bureau of Reclamation San Diego County Water Authority Metropolitan Water District of Southern California Southern Nevada Water Authority ADWR / CAP / SRP MOU aims to improve long-term water management in the Colorado River Basin by allowing discussions to develop a framework that could allow for interstate water exchanges. Thank You