PRESENT:

David Powell, Chair Winston Tustison, Vice Chair Robert Milkey, Commissioner John Hoffmann, Commissioner Richard Davis, Commissioner Elizabeth Shapiro, Commissioner

ABSENT:

Sue Novelli, Commissioner

No speakers.

APPROVAL OCTOBER 13, 2008 MINUTES - Chair Powell entertained a motion to approve the October 13, 2008 minutes.   Motion: Winston Tustison, Vice Chair moved, Seconded by Robert Milkey, Commissioner
Vote: Motion Carried 6-0.

Yes: David Powell, Chair, Winston Tustison, Vice Chair, Robert Milkey, Commissioner, John Hoffmann, Commissioner, Richard Davis, Commissioner, and Elizabeth Shapiro, Commissioner.

Commissioner Davis reported that the Subcommittee was working on several items and turned the report over to K. Boyce Water Conservation Specialist. She reported the following:

-Proposed Rebate for High Efficiency Toilet: Toilets account for 30% of residential water use. Toilets are major source of leaks and can potentially lose 200 gallons of water per day. Ms. Boyce indicated that the subcommittee would like to propose a rebate program for high efficiency toilets (1.3 gpf or less) and offer to the customers a $100 rebate for replacement of existing toilets. 

-Qualifications for rebates could include: Toilets manufactured prior to 1991 and using greater than or equal to 3.5. gallons per flush (gpf).  – Funding for HET rebates could potentially be secured by grants from the Central Arizona Groundwater Replenishment District (CAGRD). 

-Other incentives: Currently the utility provides free faucet aerators for bath and kitchen and low flow shower heads. WaterCasa continues to provide retrofits. Rain Sensors are available for $7.50 to our customers.  

-Patio Pools in O.V. will provide 15% discount on pool rings and pool covers.

-Water Audit Update: Handout provided on audits completed CY 2006-2008.
 Participation averages 200 customers per year and saves approximately 2.2. million gallons of water per year. In 2008, water audits have decreased.  Audits are currently offered to businesses and H.O.A’s however, staff should explore the Tucson WaterSmart Business program, which trains businesses to self-audit, and includes a Green Building rating system similar to LEED (Leader in Engineering and Environmental Design). Question and Answers:

Will the rating system information be provided on a yearly or monthly basis since some months less water will be used? (Commissioner Shapiro). Ms. Boyce responded that it could be provided monthly or annually.

Commissioner Shapiro asked is it possible to enter the temperature according to how much turf and vegetation is being watered or how many times a week you can water? Ms. Boyce indicated that the data is determined annually and calculated by evapotranspiration.

A discussion occurred:
-Differences between low flow versus high efficiency toilets, prices and flushing mechanism -Purchases of Water Sense products and equipment

-Landscape Code Update: The Landscape Code Review Committee was formed in an effort to make improvements to the Town’s existing landscape code. The focus was on water conservation in new commercial properties. Water audits and water budgets will potentially be incorporated into the ordinance. The Committee convened November 13 to review the draft ordinance. Staff will keep the Commission updated with the results.

-Drought Status Update:  The Drought Report is available in the website.  The Town currently remains at Stage 1 Drought conditions. Ms. Boyce indicated that Oro Valley experienced 10% above average rainfall due to the monsoon season. The new water year
started in October. Staff will provide an update to reflect the first quarter of the water year. 

Green Team: Reviewing Pima County’s Sustainability Plan. Areas of interest: alternative fuel vehicles, green building, renewal energy and efficiency, green purchasing, conservation. The team is currently working on guiding principals for the Town. 

Commissioner Shapiro requested a meeting with Ms. Boyce to discuss the mailing of newsletters and providing information being to Countryside residents. 

Chair Powell indicated that Wilson K school instituted into their curriculum water audits and teaching kids how they are done. Tucson Water and the U of A participated in the pilot program as well as Tucson Water. Chair Powell stated that it was a great outreach program and the Town should consider doing one also. 

Chair Powell announced speakers: Erica and Art Wiese. They were concerned about the top 10-water user’s e.g. (La Cholla Airpark), conservation efforts, and rate charges/usage. 
Mr. Weise was concerned about residents not knowing how to read their water meters. He expressed concerns about conservation requirements for new construction & commercial buildings.

 Mr. Saletta discussed the following:

-The Landscape Ordinance could be reviewed by the Water Conservation Subcommittee and then presented to the Commission for review and consideration of support. 
-Regarding the Rebate Program, staff will be researching this further and the Commission will have the opportunity to review it and consider forwarding to Council for approval. 
-At the Town Council Meeting on 11/5, Council member Latas requested a Study Session on Gray Water and Rain Water Harvesting. The Town Manager will be scheduling the Study Session. 

There were no further comments or questions. No Action was taken on this item.

Commissioner Hoffmann stated that Staff met on November 4th (Election night) and spent considerable time discussing two topics:

-Central Arizona Project Water: Staff reviewed the N.W Providers Gant chart which summarized the schedule of activities needed to deliver CAP Water to Oro Valley by year 2015. The Gant chart will be modified and expanded in the future and the Renewable Subcommittee will be meeting periodically. Commissioner Hoffmann turned the report over to Mr. Saletta. 

Mr. Saletta presented a Power Point Presentation on CAP Water Delivery and Routing Alternatives:

-N.W. Providers CAP Water Delivery Gant chart:  Outline- CAP Water Studies, Governance, Public Process, Financial, Land Acquisition, Design Construction, NW Water Providers CAP Water Delivery System Complete & Operational in mid-year 2014.

Commissioner Hoffmann pointed out that the public process and education was very important as this project developed. He mentioned that the Commission would also be participating. 

-N.W. CAP Delivery System Routing Evaluation: Mr. Saletta gave a brief description on:
-Alternative B-2 pipeline system and the need for a separate pumping station for Oro Valley. 
-Alternative C pipeline system and that the system would bifurcate north to Oro Valley and South to Flowing Wells & Metro Water.

Question & Answers:
In response to Commissioner Milkey’s question Mr. Saletta explained that no secondary treatment of water was necessary and that all treatment would occur at the proposed water treatment plant.

-Storage reliability reservoir\funding appropriation and construction schedule. (Commissioner Milkey) Mr. Saletta felt funding could be available year 2011 and explained that funding for the study and research were available, but not appropriated for construction at this time. The Bureau of Reclamation (BOR) is working on a study, sizing the reservoir and its cost. They will try obtaining funds for construction by year 2011.   

In response to Commissioner Milkey’s question, Mr. Saletta explained that legislatively staff has met with Senator Giffords to discuss federal budgeting and she was supportive. All monies spent by the Federal government will be reimbursed to the Federal government through the Central Arizona Water Conservation District (CAWCD) CAP repayment obligation contract. Capital charges are being paid at a rate of ($18-$21 per a/f). In addition to water revenues, there are power revenues that are used to pay back to the federal government.

In answer to Commissioner Davis question, Mr. Saletta indicated that no secondary treatment of water would be delivered through B & C-Zone Pump Station.

Mr. Saletta covered the following issues:

-Oro Valley is at a higher elevation and further distance and we would need to pump water to a higher pressure zone.

-Westland Resources & Carollo Engineers are reviewing the routes from an environmental and Right of Way (ROW) perspective. Oro Valley would prefer to not cross lands where private easements are necessary. The Utility prefers being on a right-of-way (ROW) but will not rule out private easements if they are necessary.  Drainage crossings and washes could be an issue and permits may be necessary.

-Town Manager’s Meeting: David Andrews, Town Manager and Gilbert Davidson, Town of Marana met to discuss the development of a resolution to confirm the Commitment of the four NW Water Providers. Mr. Davidson requested taking a further look at the previous Memorandum of Understanding (MOU) and Intergovernmental Agreement (IGA) routing studies.

There were no further questions, Mr. Saletta ended his report. No action was taken on this item.

Commissioner Hoffmann emphasized that critical to Oro Valley’s water portfolio are water credits that are accrued by recharging CAP water.  Long-term storage credits are needed now to defer Central Arizona Groundwater Replenishment District obligation and needed prior to delivery of CAP water. He also indicated that Avra Valley Recharge, Lower Santa Cruz Replenishment and Pima Mine Road Recharge Project facilities were discussed.
Commissioner Hoffmann turned the item over to Mr. Saletta. Mr. Saletta reported on the following: 

-Packet Information: 11/5 T.C. Communication & (R) 08-78. Staff will request that the
Commission consider a motion to support storage of CAP water at the Avra Valley Recharge, Lower Santa Cruz Replenishment and Pima Mine Road Recharge Project facility. 
   
-Importance of CAP water storage & Long-term storage credits: Every acre-foot of groundwater pumped from O.V. aquifer wells must be replaced. Groundwater replacement can be achieved through recovery well permits or by reducing our obligation to the Central Arizona Groundwater Replenishment District (CAGRD).   -Kai Farm storage agreement and O.V. use of Long-term storage credits. Kai Farms stored 3200 a/f of water this year this includes an increased request of 700 a/f.  -The Town benefits from water storage credits and diversifying the use of other facilities. The permit applications have been received from the Arizona Department of Water Resources (ADWR) and were issued in September for the Town to store water in  these three facilities. Staff developed and Council approved an agreement with the Central Arizona Water Conservation District to be able to store at these facility.   

-Planned Water Storage:  A total of 1000 a/f will be stored at Pima Mine Road Recharge in December of this year.  The Town will be able to use the storage by next year for O.V. recovery wells. 

Question and Answers:

-Anticipated schedule for Water recharge & magnitude until CAP water is available. (Commissioner Hoffmann). Mr. Saletta explained recharge should be maintained at an average of 4000 a/f but after 2009 it could increase to 5,000 or up to 7,000 a/f. The full 10,000 will probably not be utilized because the Town has previously stored credits. 
  
-Costs and repayment to CAP\water & pumping (Commissioner Shapiro). Mr. Saletta  explained that every a/f pumped must be repaid and a portion of the stored credits can be applied towards recovery wells. This portion does not have to be replaced through the CAGRD. The Town still has an obligation to replace the balance through the Central Arizona Groundwater Replenishment District. Storing in these facilities will save the Town money by reducing its CAGRD obligations. 

CAP Rate setting (Vice Chair Tustison). CAP performs a five-year plan in their rate setting process. Rates are set for 2 years.  

Vice Chair Tustison felt, it was important to communicate some of the costs to the public. Mr. Saletta emphasized costs for CAGRD have been increasing. This year the Town paid $834,000. The Town anticipates within a couple of years cost could rise to $1.5 million.

Commissioner Hoffmann clarified that the CAWCD Agreement has already been approved by Council and that the Commission was supporting the implementation and storage under these agreements and permits.

There were no further questions, Mr. Saletta ended his report.

Motion: John Hoffmann, Commissioner moved, Seconded by Elizabeth Shapiro, Commissioner to support the implementation of Resolution No. (R) 08-78 to store our CAP water in Central Arizona Water Conservation District (CAWCD) facilities at Avra Valley, Lower Santa Cruz and Pima Mine Road Recharge Projects  to accrue long-term water storage credits.  Vote: Motion Carried 6-0.

Yes: David Powell, Chair, Winston Tustison, Vice Chair, Robert Milkey, Commissioner, John Hoffmann, Commissioner, Richard Davis, Commissioner, and Elizabeth Shapiro, Commissioner.

 Mr. Saletta reported the Water Rates were approved November 5, 2008 with the Preferred Financial Scenario. Council also directed staff to perform a Cost of Service Study.  The rates will be effective starting on December 6th. Customers will begin to see increases on their bills in January or February of next year.

There were no further questions, Mr. Saletta ended his report. No Action taken on this item.

a.	Customer Service Report: Mr. Saletta reported the following:

November Meter installations: (22)
-Total Equivalent Dwelling Units (EDU’s): (117)
-Calendar year to date 270 new meters and 550 EDUs 
-Total Metered Connections as of 10/31/08 = 18,305
 Mr. Saletta ended his report. 

b.	Capital Projects: Mr. Jacklitch reported the following on the Potable Projects:

-Pusch View Lane Well: Startup will occur end of November. System will be online: First week of December  Design Projects
-La Canada Reservoir: Location: King Air Capacity: 3 million gallons. There have been delays because of some pipeline design at Moore Road. Staff is working with Public Works to workout the alignment details. Design to be completed in January.
Innovation Park Drive: Design process about 90% complete. The project will involve the replacement of some concrete-asbestos pipe. About 2000 linear feet of pipleline will be installed.

Drill replacement well: Location: Tangelo and 1st Ave. The permit for the well was received last year. The plans and specifications are being finalized.

Reclaim Phase II: Some cleanup work to be completed. Both golf courses at La Canada are online.

Hiliton Golf Course & Painted Sky Elementary: Irrigation work taking place at both sites. Painted Sky Elementary School has been converted to reclaim water.

c.	Potable and Reclaimed Water System Report: Mr. Jacklitch reported the following:

Handout: Daily Demand Chart - October 08 Reservoir Storage 7-8 mil. gallons.  Overall Reservoir Storage - October 08 - 7 mil. gallons 

Reclaim Water System Chart: October 08 Total Delivery =109 mil. gallons. Mr. Jacklitch mentioned that the Town has saved a significant amount of groundwater since the project began. Mr. Jacklitch ended his report.

a.	Tucson/Pima Water Study:

City of Tucson & Pima County presently making recommendation for Phase II of the water study.
-Topics: Agreement on population growth, Water, Urban form land use planning and infrastructure, Integrating land use planning with water resources infrastructure for each jurisdiction, Increasing reclaim water for turf irrigation, Developing renewal water resources for city and county areas, Developing a consolidated drought management plan, implementing consistent water conservation standards, and respect for the environment. 
Next meeting: 11/10/08 Time: 6 p.m.  Sat. 11/15/08 Time: 3 p.m. Location: Double Tree Hotel, Alvernon. 

b.	Upcoming Meetings:

-November 12 -Study Session: Topic: Boards & Commission Appointment Process Time: 5:30 p.m. 
-November 14: Per Commissioner Hoffmann a Brown Bag Lunch -Location: University of
Arizona Water Resources Research Center, Topic: Clearwater Program - Presenter: Wally Wilson, Hydrologist Time: 12 - 1:30 p.m. Location: Campbell & South 6th Ave.
-KUAT Series of shows: November 13 – Time: 8:30 p.m. American Southwest Running Dry, 1/2 hr. Arizona Illustrated (Panelist: C. Huckleberry, Jeff Briggs, Sharon Megdal and K. Jacobs. Topic: Water in Tucson Area, 10:00 p.m. Liquid Assets.
Commissioners can receive training credits.   
-November 15 - T.C. Meeting
-December 8 - Water Commission Meeting
-December 11 -Volunteer Dinner. Invitations will be sent.
Mr. Saletta ended his report.

MOTION: A motion was made by Commissioner Davis and seconded by Commissioner Hoffmann to adjourn at 7:30 p.m.

MOTION carried, 6-0.