PRESENT:

David Powell, Chair Rick Davis, Commissioner Robert Milkey, Commissioner Elizabeth Shapiro, Commissioner John Hoffmann, Commissioner

EXCUSED:

Winston Tustison, Vice Chair

Mr. Vince Vasquez, 2200 E. River Road #115, had several questions regarding Rainwater Harvesting and the Landscape Ordinance. Chair Powell mentioned that his questions would be covered under Item #2. 

MOTION: A motion was made by Commissioner Milkey and seconded by Commissioner Shapiro to Approve

MOTION carried, 5-0.

Mr. Saletta reported the following:

-Packet information: T.C. Communication prepared by B. Vella, Planning & Zoning describing the proposed Gray Water Ordinance.
-Gray Water Ordinance: The proposed ordinance specifies plumbing requirements and implementation to new homes establishing gray water systems which can be installed without significant additional construction or expense to retrofit plumbing.

-Gray Water Basic Concept: Allows showers and bathroom sinks to drain to a separate gray water system, toilets, kitchen sinks and dishwashers which would discharge to the sanitary sewer. These are two separate plumbing systems they could join but there must be a valve separating them. In addition washing machines are required to have a valve and plumbing to a gray water system. 

-The ordinance is primarily a Building Code\Planning and Zoning ordinance the Water Utility was involved through the Conservation Specialist. The Water Quality staff also participated to address issues on backflow prevention devices. A residence using a potable water system drip irrigation system, would require a backflow prevention device for any gray water system built in the future.  

The ordinance does not mandate the use of gray water systems rather, it allows waste  plumbing to be installed in a home for future use. This ordinance is very similar to the City of Tucson ordinance.  

-Staff recommends that the WUC support the proposed ordinance which will be considered for approval by Council at their meeting on Wednesday, June 17th.

Questions & answer session occurred:

-Would the sewer surcharge go down if a resident is using a gray water system or are there any type of incentives? (Commissioner Davis). Mr. Saletta indicated that the surcharge would be something Pima County Wastewater would have to consider. The Town and the Utility does not have any jurisdiction on fees or the setting of sewer fees. Wastewater billings are determined based upon indoor water use during the winter months, so the billings may not change.  

-How would Pima County know that the water went into a graywater system if sewer rates are based on metered water? (Commissioner Milkey). Mr. Saletta indicated that they wouldn’t know if a gray water system existed, but it would be based on water used for irrigation which is generally reduced during winter months. Mr. Saletta pointed out that the sewer fees are based upon what goes through the water meter during the months of December-February.   

Commissioner Davis commented, we cannot incentivize residents to use less water by lowering their sewage because we have no jurisdiction over those sewer charges. 

Commissioner Milkey indicated that he discussed the ordinance with Mr. Saletta, B. Vella, and John Holden from Planning & Zoning. He also mentioned it was clear  there were no risks to the Water Utility from fees and engineering issues. He explained that backflow protection was clearly defined and there are advantages that could impact long term water conservation. 

Mr. Milkey indicated that it addresses customer's long term incentives regarding water usage, water conservation, possible savings and lower water bills. There is a need for public education, explain the advantages of installing a gray water system; if plumbing is available what are the advantages, and how to operate the system properly.  

Question and answer occurred:

Commissioner Shapiro requested clarification on unutlized stub outs. Is there any way to divert water and is there a possibility of contamination? Mr. Saletta explained that there was a specific valve diverter that the resident could control to prevent backflow from the sewer coming back in the home.  

Commissioner Shapiro asked, is there a separate diverter for the use of a washing machine? Mr. Saletta explained the ordinance states that you can have a separate washing machine diversion and valve to connect into the gray water system.

Commissioner Milkey commented that the use of a washing machine for gray water would  probably be inexpensive.

Commissioner Hoffmann asked, is there an ordinance for retrofitting a gray water system to an existing homes? Mr. Saletta indicated that there was an ordinance in place and that a customer could install a gray water system in accordance with ADEQ standards and regulations, however their plumbing must be retrofitted and that could be costly.

Commissioner Davis pointed out Section 101.11-Collection Reservoir under the International Residential Code that states the collection reservoir shall be closed in a gas-tight vessel. Item 3 also stated the reservoir must be vented, he requested some clarification. Mr. Saletta pointed out the sections were addressing proper ventilation and installation of a leak proof container and he would discuss this with the Town Staff.

A discussion took place about retrofitting of older homes and its long term advantages. 

MOTION: A motion was made by Commissioner Milkey and seconded by Commissioner Shapiro to Approve to recommend to Town Council approval of the Residential Gray Water Ordinance requiring installation of gray water plumbing in residential construction by amending the Oro Valley Town Code, Article 6-1, and the 2006 International Residential Code. 

MOTION carried, 5-0.

Mr. Saletta indicated that the item would be forwarded to Council for approval on June 17, 2009.

Call to Audience: Chair Powell recognized Mr. Vince Vasquez, Diamond Ventures Representative, 2200 E. River Rd, Tucson. Mr. Vazquez had several questions regarding Rainwater Harvesting, and Landscape Ordinance/Codes and whether it was drafted similarly to the City of Tucson. He was particularly interested in issues such as grandfathering of projects and future projects. Chair Powell mentioned that the issue would probably be addressed by the Commission prior to approval of the ordinance.  

There were no further questions.

David Ruiz reported the following:
-May 2009 Potable System Graph: -Early peak demand was approximately 6 (MGD) to 9 (MGD).

Average Daily Production = 7.7 Million gallons per day
System Well Capacity = 14.0 Million gallons. Mr. Ruiz indicated that the system was basically working at 53% capacity due to the Reclaimed Water System. He also indicated there were approximately 9,000 valves needed to be exercise. A total of 2,000 have been completed by Staff. Also, this year the Water Utility has focused its energy on other maintenance such as fire hydrants and air release valves. 

Mr. Ruiz gave an update on the responsibilities of the Production Facilities Field Operators. 

-Hilton El Conquistador South Pond: Ashton and their subcontractor, Field Lining Systems, repaired all leaks that were found. The Hilton El Conquistador golf course began filling the pond with potable water as of Friday, May 29th. The Utility staff began its leakage/evaporation tests as of today June 8th and will collect the data tomorrow. Staff is confident the pond will be on line with Reclaimed Water soon.  

-May 2009 Reclaim Water System:  The Reclaim Water System continues to do well. 
-Demand increased in May to 78,788,000 gallons. Mr. Ruiz explained that June is the peak month for both Potable & Reclaimed water. All reclaimed facilities continue to operate well. 

In answer to Commissioner Davis question, Mr. Ruiz indicated that the south pond is about 15-16 feet deep and can store up to 3.5 million gallons of reclaim water. Mr. Ruiz ended his report. There were no further questions. No Action Required on this Item.

Mr. Saletta reported the following:

-The Water Utility has 2 groundwater extingishment credit requests to Arizona Department of Water Resources (ADWR). The first was the conveyance of 4,000 af groundwater Extinguishment Credits from Tucson Water to the Town. Town Council approved the purchase of these credits for $700,000. The paper work was completed and Tucson Water will be submitting it to ADWR. A small amount of 420 a/f of extinguishment credits were conveyed to the Town at the time Steam Pump Village was developed. These credits have recently been pledged to the Water Utility’s Groundwater Allowance Account and can be used to reduce the Utility’s financial obligations to CAGRD.   
 
Staff will be looking into whether or not there are water rights for the existing Steam Pump Ranch and whether there is a potential using these rights or extinguishing them for Groundwater Credits.

Tucson Water Agreement: The Utility has signed an agreement and is currently working on all the paperwork to ADWR and would like to make the payment of $700,000 before the end of Fiscal Year 08/09. Although, these groundwater extingishment credits are valuable to the Water Utility it is paper water not wet water. 

Question and answer session occurred:

-What does Tucson Water charge for extinguishment credits? (Commissioner Shapiro). Mr. Saletta indicated they agreed on a price of $175.00 per af. The 4,000 af amounted to $700,000.
-What do we pay for pumpage? (Commissioner Shapiro). Mr. Saletta indicated the payment for excess groundwater pumpage was approximatly $260-$305 per af to CAGRD.

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

Mr. Saletta reported the following:

-The Tentative budget was approved 6/3/09 by Council. The Final budget will be presented to Council on 6/17/09. After Council’s approval of the Tentative budget there were no reductions to the Water Utility or any other departments.

-The Water Utility was able to demonstate that it could shift and manage its workload to reduce outside services costs by providing its own inspection services on Capital Projects.

-Council chose to use reserves from the General and Highway Funds and not reduce any positions however, this action will be reviewed in six months. Council approved a severance package to any employee that would make a request within a 45 day period as of June 4th.  

-The Public Hearing for the Final Budget Adoption is scheduled Wedesday, June 17th. Vice Mayor Carter clarified Council’s decision regarding the severance package. Mr. Saletta indicated he had not heard from any Water Utility employees at this time.

-State of Arizona Senate adopted a budget for a 3-year moratorium on Impact Fees and Sweep of Vehicle License tax revenues this moratorium will impact the General Fund. Several of the departments that could be affected by the moratorium are the Water Utility, Public Works and Police Department. This bill has not been approved or presented to the Governor. If the Water Utility’s Impact Fees are affected, the Utility could experience a revenue reduction of $700,000 to $1,000,000 per year. This is based on preliminary calculations. Typically the Water Utility’s water sales are in the $13-$14 million dollar range. Staff has more work to do on the water rates analysis. Passage of this bill has yet to be confirmed. 

Question and answer session occurred:
-In answer to Commissioner Milkey’s question, Mr. Saletta clarified that according to the Town’s email it will affect the collection of existing Impact Fees. Mr. Saletta indicated that he would follow-up with the Town Manager’s Office and report back to the Commission with more information.  
 
-In answer to Commission Shapiro’s question, Mr. Saletta was not certain if SAHBA was directly involved in promoting the legislation on the Moratorium on Impact Fees. 

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

Ms. Seng reported on the Water Rates Analysis:

-Packet: Includes Water Rates Analysis Proposed Work Schedule as of June 1, 2009. All dates are preliminary with the exception of the Water Utility Commission meetings. 
-July 8th: T.C. Study Session: Staff will seek Council direction on water rates. At this time, the Utility is only seeking to increase the Ground water Preservation Fee (GPF). Staff has started putting some data together and will have some preliminary numbers on the base line and some data on the GPF ready for Council.

Chair Powell requested that Staff contact the Commission via email if they needed some support. 

Question and answer session:
-Commissioner Milkey asked, is there anything keeping it from being too overly restricted to the Commission for example, the issue regarding impact fees or other issues? Ms. Seng commented there were no restrictions, the Commission could present any number of scenarios to Council.

-Commissioner Milkey asked, is there any opportunity for the Commission to participate at Council’s Study Session? Mr. Saletta indicated that he would discuss it with the Town Manager and the Mayor. The Mayor may recognize the Commission but usually does not allow the public to speak because the public has the opportunity at Council meetings. Study Sessions are working sessions for Council information, updates and preliminary discussions. 

A short discussion occurred regarding the installation of a second meter or submeter for irrigation only and how it could affect impact fees and the purchase of a second meter. (Commissioner Davis). Mr. Saletta indicated that if there was a submeter installed the customer would not have to pay any impact fees for it, and would only pay impact fees associated with the first meter. He indicated that most commercial meters are used for irrigation only. 

There were no other quetions, Ms. Seng ended her report. No Action was Required on this Item.

Vice Mayor Carter reported on:

1. Senator Al Melvin will be present at the Judge’s Chambers Saturday, June 13 Time: 12-2:00 p.m. Vice Mayor Carter and Doug McKee would be present to discuss several outstanding Bills and Bond Funding. 
2. July 1, 2009 Council meeting has been cancelled.
3. Supreme Court hearings on Sales Tax, rulings have not been finalized
4. Mayor’s Loomis, Walkup and Mayor from Sahuarita attended meetings in Phoenix to discuss StateLand issues with the Governor.
5. Reported on possible employee layoffs and Council’s decision on budget. 
 
Vice Mayor Carter ended his report.

 

a.	Finance Subcommittee

Commissioner Shapiro had no report.

b.	Conservation Subcommittee

Commissioner Davis indicated that work continues on the Final Draft Landscape Code Ordinance which will be presented to the Commission. 

c.	Renewable Water Resources Subcommittee

Commissioner Hoffmann reported the Subcommittee will meet June 25th at the Hopi Conference Room, Time: 6:00p.m. Agenda to follow.

a.	Customer Service Report

Ms. Seng reported on:

Month of May Meter Installation:
 -Installed total of 5 meters. Installations have slowed down considerably. The Utility will not reach its goal of 250 meter installation.
 -EDUs: Projection = 312 (Exceeded projections)
 -Actual New Meter Installations as of 5/31/09 is187 
Ms. Seng indicated that Staff will continue updating the Commission.

b.	WIFA Loan Application Status

The Utility submitted its WIFA loan application. Staff received a call from WIFA that they will try to submit the loan application to the Board before June 25th. If the paperwork is not submitted to the WIFA Board in time for the June 25th WIFA meeting, the next available date to submit the loan will be in September. Ms. Seng ended her report.

c.	Capital Projects

Mr. Jacklitch reported on:

-June 12th: Public Bid Opening for Innovation Park Drive 16" Water Main installation (2,000 linear feet of Pipe) 
-New Well Replacement for (E-1) Location: Tangerine & First Avenue. Staff is currently negotiating with the Well Drilling Contractor. The Utility will be abandoning the existing well.

Design Project
-Design of La Canada Reservoir 3 million gallon capacity is almost complete. 
-El Conquistador Booster Pump Station -Final bid documents are almost complete. Staff anticipates going out to bid mid July.
-Steam Pump Well Project is planned for next fiscal year.

Mr. Jacklitch ended his report.

a.	Water Utility Commission Vacancy and Reappointments

Commissioner Hoffmann submitted his request for reappointment. Commissioner Hoffmann’s request and Mr. Richard Reynolds application for the Commercial/Turf representative will be presented Wednesday, June 17th on the Town Council’s Consent Agenda. Mr. Reynolds is employed by Ventana Medical Roche. 

b.	Update on Northwest Water Providers CAP Treatment and Delivery

-Currently the providers have several sub alternatives for the last few miles of pipeline routing. All costs will be compared to determine the best option for Oro Valley and all the other partners. 

-Currently Staff members D. Ruiz and B. Jacklitch are working on a CAP project  Water Quality and Distribution System Study. This study will take a look at CAP’s water quality and the Utility’s expectations after treatment and its effect on the pipeline water distribution system. Staff has received 5 proposals for this study. The Committee should make a selection by early July.

c.	Upcoming Meetings

6/17 - Council Meeting
6/25 - Renewable Water Subcommittee Meeting
7/1 -  Council Meeting - Cancelled
7/8 -  Council Study Session on Water Rates
7/9 -  WUC Finance Subcommittee Meeting
7/13 - WUC Regular Meeting

Packet Insert: Copy of Commission’s Training Hours
Mr. Saletta ended his report.

Commissioner Milkey emphasized the importance of Senator Melvin’s visit to Oro Valley on Saturday, June 13 and hoped that some of the Commissioner’s attend, since he would be out of Town.

Commissioner Hoffmann requested that under Director’s Report a short calender listing of upcoming meetings be included with the Commission's packet.
 

Future Agenda Item: Stimulus Package Update (Commissioner Hoffmann).

MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Milkey to Adjourn

MOTION carried, 5-0.