MINUTES
ORO VALLEY WATER UTILITY COMMISSION
Regular Session
Monday, February 8, 2010
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
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PRESENT: |
John Hoffmann, Commissioner
Robert Milkey, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
Winston Tustison, Commissioner
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| EXCUSED: |
Dave Powell, Chair
Richard Davis, Vice Chair
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STAFF PRESENT:
Philip C. Saletta, Water Utility Director
Shirley Seng, Utility Administrator
David Ruiz, Engineering Division Manager
Robert Jacklitch, Project Manager
Jim Peterson, Water Utility Regional Coordinator
No speakers.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Hoffmann to Approve as amended.
MOTION carried, 5-0.
Corrections: Page 6 and Page 9 per Commissioner Reynolds.
Page #6 - Dollar amount should be $18,000,000 instead of 18,000.000
Page #9 - Renewable Water Resources subcommittee, Commissioner Reynolds in attendance.
Mr. Saletta reported on discussions with Tucson Water, Metro Water Ref: Tucson Water Wheeling Oro Valley’s Central Arizona Project Water.
-CAP Wheeling Concept/Process: Tucson would recharge and store Oro Valley’s CAP water in their recharge and recovery facilities for delivery to Oro Valley.
Recently discussed were payments for this water and that a Cost of Service study together with a Scope of Work must be developed.
Mr. Saletta touched on several of the key highlights discussed with Consultant CH2M-Hill.
-Determine dollar amount per volume per a/f basis
-To avoid having two separate Cost of Service Studies, since Metro Water and Oro Valley are basing delivery at a range of 3,000-5,000 a/f per year a possible solution would be to split the difference to 4000 af in the study.
-Review: Costs associated with delivery to Oro Valley Water and Metro at the Naranja reservoir owed and operated by Tucson Water. Location Naranja and Shannon.
-CAP canal recharge deliveries may be constant on a per month basis e.g. 300 a/f per month. Oro Valley would like to pace deliveries based on upon demand.
-Intergovernmental Agreement: The IGA should be in place approved by various Councils and Boards in September 2010. This allows Oro Valley Water to have the IGA in place prior to any orders we would make from the Central Arizona Project due by October 1st of each year for the following CY 2011.
-The Water Quality and Distribution Study Phase 1 being performed by CH2MHILL and Staff should be done at the same period.
-Tucson Water deliveries to Oro Valley could begin in Spring CY 2011.
Mr. Saletta ended his report. Questions and answer session occurred.
-When do you expect the Scope of Work from Consultant? (Commissioner Tustison). Mr. Saletta indicated that the Scope of work is expected next week then Staff will review it. It take four to five month and may be completed by the consultants end of July. Staff could be ready to present it to the Commission the end of July and August or September to Council.
-Would we be able to predict how much water will be needed? Commissioner Shapiro? Mr. Saletta mentioned that delivery could be as much as 3,000-5,000 a/f per year or as low as 2,000 a/f the first year. Depending on the demand curve during the year delivery on a monthly basis could be 200-400 a/f per month.
In response to Commissioner Shapiro, Mr. Saletta gave a brief description of Tucson's Water Naranja reservoir located at Naranja & Shannon and Oro Valley's pipeline connection. He also mentioned there would not be a significant amount of infrastructure required by Oro Valley for the purposes of CAP wheeling.
Mr. Saletta pointed out that Ironwood H.S. and Wilson Elementry in Oro Valley are getting Tucson’s water deliveries and this is the same system Oro Valley will be receiving its CAP water.
Mr. Ruiz gave a brief explanation:
-Tucson's Water blending procedures, recharge/well sites
-PH compatibility
Commissioner Tustison understood the advantages of using Tucson's Water would be the use of more CAP water and less ground water. He asked what range of delivery would be used 2,000 thru 4000 a/f?
Mr. Saletta indicated that O.V. Water Quality and Distribution Study Phase I together with Tucson’s Water Quality information would determine the TDS (Total Disolved Solids) water levels available for delivery.
Major Water Quality/blending components: TDS, PH, Chlorination, Logistics: Direction of flow, Develop a program for flushing the system.
Mr. Ruiz explained there could be some physical constraints such as closed valves, zone boundaries, different service areas. We must find the most efficient ways of serving these areas.
-Is there a chance to see CH2MHill report or have them present their analysis? (Commissioner Hoffmann). Mr. Saletta indicated that the consultants could make a presentation and the report will be available to the Commission for review.
Commissioner Hoffmann agreed to include CH2MHILL Water Quality and Distribution Study Phase 1 First Draft report and Staff's Cost of Service Study as a future agenda items for June or July.
Mr. Saletta mentioned that both reports should be completed by Spring-2011.
There were no further questions, Mr. Saletta ended his report. No Action was Required on this Item.
Mr. Saletta reported the following:
-Packet item: Description of the Groundwater Preservation Fee used in the 2003 Water Rates Report.
-GPF Concept: Provide funding for Renewable Water Resources which began with the Reclaimed Water System and its construction in 2004. Established and recommended by Commissiong & Staff Fall 2003
The GPF was recommended by the Commission and established by Staff in Fall 2003.
Key Component:
-GPF will help finance delivery systems that will provide renewable water system supplies to the Town of Oro Valley. This was the basic principle to obtain funding and to move forward with Renewable Water Supplies.
-Preservation of ground water supplies was also a major factor in terms of having this fee.
-Existing customers would pay their fair share.
Mr. Saletta gave a brief description of the ground water deliveries in 2005 and the importance of the reclaimed water system in reducing ground water usage. The goal is to reduce ground water delivery to 5500 a/f per year.
-Repay debt associated with capital improvements. It is not intended to be used for operating/maintenance costs of the renewable water system.
-Sources of Funds for Reclaimed Water: The GPF will be a source of revenue that will be used to repay bonds sold to finance the reclaimed system.
Mr. Saletta explained that when we use excess capacity through Tucon’s Water system we defer capital expenditure. The GPF would not be used for O&M, chlorination or infrastructure maintenance.
Mr. Saletta explained that he would the Commission/Finance Subcommittee to consider the flexibility of using the GPF to make outside payments to Tucson Water as outlined in CAP wheeling agreement.
-Finance Subcommittee tentative meeting set February 25 to discuss GPF concept.
Ms. Seng gave a brief explanation about the GPF adoption. The Finance subcommitee will evaluate and expand in more detail the concept of using the GPF for Tucson Water’s CAP Wheeling.
What is the expense and magnitude for Tucson’s Water delivery will preservation fee be sustainable (Hoffmann) Mr. Saletta indicated that the GPF would be based on a per acre foot basis and has already been applied to the five year projections.
Will this fund sustainable Look at GPF could be feasible What
Commissioner Milkey felt it would be premature having the Finance Subcommittee meeting without having a per a/f cost estimate from Tucson Water. Mr. Saletta indicated that they would be reviewing the concept and trying to estimate a range of costs. We need to review the concept, if it turns out that the Tucson Water is too expensive it probably will not happen. He emphasized that having the GPF component in place will give us the flexibility to pay for CAGRD costs. For every acre foot of CAGRD paper water we obtained we pay $300 an a/f this concept would significantly reduce those payments.
Mr. Saletta stated that we need to proceed at the Finance Subcommittee level. If they find another way we still need to evaluate all these costs.
Commissioner Milkey requested clarification regarding the payment arrangement with Tucson Water for delivering their water to Oro Valley. He felt more comfortable with Staff’s proposal using the GPF to cover the difference for the CAGRD payments.
Mr. Saletta mentioned that after the Finance Subcommittee meets they will report their findings to the Commission.
There were no further questions, Mr. Saletta ended his report. No Action was Required on this Item.
Mr. Saletta indicated that Staff submitted draft comments to regarding City of Tucson/Pima County Water and Wastewater Infrastructure Study.
Tucson City Council at a Study Session will discuss the Study and review all the comments received by a multitude of entities and residents with respect to their acceptance of the Phase 2 Report.
Mr. Saletta reported the following:
-A public process instituted by the City of Tucson and Pima County. They appointed an oversight committee representatives from Pima County and the City of Tucson.
Concept: Look at joint water service waste tz & pima cty.
look at growth did not include arroyo grande
Attended several meeting earlier throught their process.
-reason; recommendations will apply only to tz water service area.
would not apply to the nw water providers
comments:
Concept: Focus on the joint wastewater service areas for City of Tucson & Pima County. They also reviewed growth areas beyond the service area it did not include Arroyo Grande.
During the early process Oro Valley attended several meetings but as they focused in their joint areas (Tucson Water and Pima County Wastewater) Oro Valley did not attend any more meetings. The Town of Oro Valley, Town of Marana, Metro Water did not feel that the recommendations in the study would apply to them.
Mr. Saletta outlined several of the comments submitted by Oro Valley:
-Recommendations made should only apply to Tucson Water and Pima County Wastewater.
-Any of the recommendations will not interfere with any water supply to Oro Valley e.g. groundwater, reclaimed water, CAP water or effluent.
-If the next phase of the study were to continue, it should not proceed unless there is adequate and fair representation for the other water providers.
-City of Tucson Council Study Session is scheduled February 9, 2010, Time: 5:30 p.m. City of Tucson will formerly accept the Study at their February 17, 2010 Council Meeting.
Commissioner Shapiro asked what is Phase 2 of the Study. Mr. Saletta indicated that Phase 2 was the report they had just finished. Phase 3 of the Study would probably include all the other water providers if they want to move to a more regional study giving the N.W. Water providers fair and adequate representation.
There were no further questions, Mr. Saletta ended his report. No Action was Required on This Item.
Councilmember Carter indicated that Staff will need to make a strong effort and be prepared to answer all questions to Town Council on Item #3.
-Update: On Home Rule Ballot. Councilmember Carter ended his report
Commissioner Tustison had no report.
-Subcommittee met a week ago.
-Review: Conservation education per resident’s request by means of volunteers
-Review: Drought Response Plan triggers & responses. The Subcommittee will be working on revising the current Drought Response Plan and will bring it forward with recommendations to the Commission. The Subcommittee will continue to meet once a month.
Commissioner Hoffmann indicated the Subcommittee did not meet.
Ms. Seng reported on Meter Installations as of January 31, 2010:
Total Metered Connections = 18,406 Current Meter Installations as of 1/31/10 = 5 Actual New Meter Installations as of 1/31/10 = 33
-Projected EDUs for FY 09-10: = 90 -Actual EDUs as of 1/31/10 = 41
Update: Meter Replacement Program
This program was implemented July 2008. Staff has currently replaced over 800 ranging from a 5/8 to 6 inch meters and are averaging about 44 meters per month. Staff is in the process of calculating the increase in water usage and any revenue increases resulting from the replacements.
Automated Meter Reading (AMR) - At the Highlands Mobile Park 287 AMRs have been installed. Oro Valley Market has been completely equipped with AMRs.
-Recently equipped the Campo Bello area with 168 AMRs. With all these improvements and by reducing their meter reading time by 1 full day staff has been able to continue with their maintenance projects.
-Next project mercado del rio next project
-Next AMR project: Mercado Del Rio shopping center. Location: Pusch View Lane/West of Oracle
Ms. Seng ended her report.
Mr Jacklitch reported the following:
-Innovation 16-inch Water Main Installation: The main is 100% installed. Currently looking to tie in to the hospital. Project Completion: March 2010
-Replacement Well E-1B: Engineering Design for the site facility will be completed in March. As soon as this is completed the project will go out for public bid. Construction: 4-6 month period
-North La Canada reservoir: Location: King Air/Moore. The reservoir and the 24-Inch main are tied together. A Notice to Proceed will be issued next month
so that construction can begin as soon as possible. These projects will involve two separate contractors. The reservoir is a prestressed buried concrete reservoir. Construction: 10-12 months -24-Inch pipeline construction: 6 months
-Modifying 3 pressure reducing valve stations: Staff has completed 1 station
on Lambert Lane and currently beginning work on another station located on
La Canada & Linda Vista. Staff is currently working on a Request for proposal for the third station location: La Reserve Area.
Design Projects:
-Lambert Lane: Public Works is currently working on the design for widening the road to four lanes Location: Lambert Lane/La Canada/ to Push View and bridge. Oro Valley Water will have to relocate serveral water mains and issued a Notice to Proceed to Brown and Caldwell. They are currently working on the design phase of this project.
-Redesign Hilton Booster Station: The Design phase will be finished by next month and the project will go out to bid when completed.
-CAP Water Distribution Study: CH2MHill is currently working on the
Study. We have completed the Scope of Work and are currently working on the contract. A Notice to Proceed will be issued in the next few weeks.
Mr. Jacklitch ended his report.
-January Reports:
Potable Water Report
Daily Demand = under 6 million (mgd). Oro Valley has experienced significant rain events.
Potable Overall Reservoir Storage = 4-6 million gallons (mgd). Reservoirs are kept roughly under 7.0 (mgd)
Reclaimed Water Report
-Investigate why End User 3 water consumption is high compared to other golf courses this could be an error.
-Total for 6 End Users = 17.3 (mgd)
Hilton El Conquistador South Pond: No usage at this time. The pond will receive reclaimed water possibly in 2-3 weeks.
Mr. Ruiz ended his report.
Mr. Saletta indicated that the 16 inch Main project was completely managed in-house. He thanked Mr. Moore in the New Development area who was able to manage this project. The Utility was also able to save money by using its own Inspectors.
-Packet: Commission Training Spreadsheets provided. Any discrepancies comments or questions cmay be directed to me or the Office Specialist.
Mr. Saletta thanked the Commission for their time and training effort. He pointed out that Planning & Zoning Department are looking into appropriate courses for all Commissions and Boards.
Mr. Saletta reported the following:
-Mr. J. Peterson attended several CAP meetings regarding the Navajo Generating Station. Mr. Saletta reviewed several of the steps Central Arizona Project staff is doing on behalf of the CAWCD Board.
-Review: EPA recommendations at Navajo Generating Station
-Station is a coal fired plant. - CAP has about 24% share in this plant and receives 95% of its demand from this plant.
-EPA has investigated CO2 (Carbon Dioxoide) - greenhouse gases, NOx (Nitro Oxide)-visibility and Sulfer Dioxide effects generated from this plant.
-CAP concerned about the requirements for electric generating stations and increase costs associated with complying with EPA recommendations.
Key focus: Nitro Oxide/various technology methods available. EPA at this time is recommending a very expensive form of technology dealing with catalytic conversion.
Cost differential technology range from 40 million to over a billion. CAP Staff will be looking at a public education process advising the public how these costs will be impacting water rates.
-CAP’s plan was emailed to the Commission. Mr. Saletta informed the Commission that the CAWCD Board is taking the issue very seriously.
Mr. Peterson indicated that CAP Board has provided a list of committments. Provide information to the public via visual aids and providing presentations to Southern Arizona.
-EPA has become very strict regarding these proposed methods.
Commissioner Milkey indicated doing some research through the EPA and Federal Registrar. He indicated that only 2 items were of concerned to EPA: Control Nitrogen Oxides and particulate matter. There were no issues regarding climate change or greenhouse gases. Commissioner Milkey pointed out that in terms of Nitrogen Oxide emissions that the Four Corners plant was rated No.1 in the country and the Navajo plant was No. 4.
Commissioner Milkey made several comments regarding:
-Costs versus benefits, Catalytic reductions and mitigation of greenhouse effects, retrofitting power plants.
Commissioner Tustison indicated that it was very interesting information, but no discussions should be taking place during the Director’s Report. Mr. Saletta mentioned that certain levels of discussion on an subject matter needs to be posted as an Agenda Item.
Commissioner Tustison felt it was important that certain organizations be available for speaking engagements and he would look into it.
-2/09: Tucson City Council Study Session
-2/17: Town Council Meeting
-2/24: Town Council Study Session Topic: Bonds
-2/25: Finance Subcommittee Topic: Bonds Defeatsance????
-3/03: Town Council
-3/08: Water Utility Commission
-March or April: USGS Aquifer Storage Findings (J. Hoffmann)
-Field Trips: Tucson Water Recharge Facility Ref: CAP Wheeling (Commissioner Tustison)
-Field Trips: CIP projects
No Audience Comment.
CENTRAL ARIZONA PROJECT VIDEOS - COMMISSION TRAINING
Two CAP video presentations were given.
NEXT MEETING: MARCH 8, 2010 LOCATION: HOPI CONFERENCE ROOM
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Hoffmann to Adjourn
MOTION carried, 5-0.