MINUTES
ORO VALLEY WATER UTILITY COMMISSION
Regular Session
Monday, March 8, 2010
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
CALL TO ORDER
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PRESENT: |
David Powell, Chair
Rick Davis, Vice Chair
John Hoffmann, Commissioner
Richard Reynolds, Commissioner
Robert Milkey, Commissioner
Elizabeth Shapiro, Commissioner
Winston Tustison, Commissioner
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Staff Present:
Philip C. Saletta, Water Utility Director
Shirley Seng, Water Utility Administrator
David Ruiz, Engineering Division Manager
Jim Peterson, Water Utility Regional Coordinator
Others:
Rob Carruth - U.S. Geological Survey
CALL TO AUDIENCE - At this time, any member of the public is allowed to address the Water Utility Commission on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Commissioners 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 Water Utility 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 Speakers.
MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Shapiro to Approve
MOTION carried, 7-0.
Commissioner Hoffmann explained that the USGS makes its presentation every year and has a program with the Town of Oro Valley and several other participants in the Tucson Basin to monitor aquifer storage. During this period results start to come in and the USGS gives a presentation to all the cooperating entities.
The U.S. Geological Survey staff meets with Metro Water, the Town of Marana, Tucson Water, Arizona Department of Water Resources and Oro Valley. Mr. Hoffmann introduced Rob Carruth who was heading the project. Mr. Carruth's presentation included the following:
-Update on land subsidence and aquifer storage changes in the Tucson Active Management Area.
-Network of monitoring stations for aquifer-storage change and land-surface elevation changes.
-Subsidence from ground-water extraction occurs when fluid pressure in compressible sediments is reduced.
Aquifer Interbeds - (Confining Unit)
-Discussed the gravity survey, the use of the Vertical Extensometers and GPS Surveys.
-Water level and subsidence maps of study area were presented.
Storage change indicated a cumulative decline near Canada del Oro Wash of 0.5 ft per year. Storage change in some of the Tucson Basin was 0.3 ft per year.
-Land Subsidence in the TAMA 2006-2008 Maximum Subsidence in the TAMA 0.5 inch Tucson Basin, 1 inch Avra Valley.
Mr. Rob Carruth pointed out the USGS Resources website and ended his report.
Question and answer session occurred.
Chair Powell asked how far back does your recordkeeping go? Mr. Carruth explained that the records go as far back as 20 years.
Commissioner Tustison commented, we obviously had a lot of rainfall this winter than average. How does this water percolate into the ground and recharge and when will you see some change in groundwater levels? Mr. Carruth indicated that Don Pool performed several studies and posted stations across the Rilito River and during the El Nino year did repeat measurements across the channel. He explained that El Nino period is very critical for groundwater recharge in Tucson and the mass of water could be the bulk of recharge for several years. How quickly percolation occurs depends on the coarseness of the sediment.
Commissioner Hoffmann reiterated that recharge occurs predominately during the winter months very little recharge occurs during the summer months
due to evaporation and very little water makes it passed the root zone. For recharge to occur water has to get passed the root zone. He emphasized that winter flows result in recharge and the significant El Nino rains dominate the recharge.
Chair Powell asked how deep is the root zone? Commissioner Hoffmann indicated that it depended on the plants.
Commissioner Davis asked could recharge be hampered by the intensity of rainfall causing more runoff during the summer? Commissioner Hoffmann explained that higher intensity runoff encourages recharge in a desert setting. He also explained that some studies in the San Pedro Basin have shown that urbanization has resulted in higher runoffs and increased recharge.
There were no further questions. Chair Powell thanked Mr. Carruth for his presentation. The Commissioners will receive training credits. No Action was Required on this item.
Ms. Seng reported the following:
-The Finance Subcommittee met February 25. She reported that in 2001 the Town sold bonds for both the General Fund and for the Water Utility. The Water Utility used its portion of bond proceeds for existing system improvements. This debt service has always been paid out of the Enterprise Fund existing system improvements.
-To reduce debt the Town is looking to payoff bonds several of the older bonds with higher interest rates, and two other bond issues (Series 2000 & 2003). Series 2001 is the only bond defeasance the Water Utility would be participating in. These bonds are not scheduled to be paid off until July 1, 2014. Early defeasance of the bonds will save the Water Utility approximately $70,000 in interest.
-Town Council approved the defeasance at their regular meeting on March 3, 2010. Staff is requesting action from the Water Utility Commission in support of the Series 2001 Bond Defeasance.
The Municipal Property Corporation is expected to take formal action later this month.
Ms. Seng described the attachments:
-Principal Balance Remaining= $1,388,362.00
-Total if paid off by 7/1/14= $1,558,034.81
-Prepayment amount= $1,487,811.69
-Savings from prepayment= $ 70,223.12
A question and answer session occurred.
Commissioner Milkey asked if the $1.47 million come from cash reserves? Ms. Seng indicated yes. What would be the ending cash reserve balance and is there ample cash available thereafter? Ms. Seng indicated that at the end of the year there would be approximately $4.8 million.
There were no further questions.
Chair Powell indicated there was a motion on the table and action was required.
MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Shapiro to Approve that the Water Utility Commission support the Series 2001 Bond Defeasance
MOTION carried, 7-0.
Vote 7-0
Mr. Saletta gave an update on the Intergovernmental Agreement:
-A recent draft of the IGA is under review. The Northwest Water Providers agreed to leave the Lead Agent out of the agreement.
-The Bureau of Reclamation (BOR) Value Planning Study regarding reliability is near completion and costs are coming in lower than for the N.W. reliability reservoir.
Metro Water has conducted a Costs Comparison Study for CAP water delivery infrastructure utilizing recovery wells and recharge facilities.
Currently, Oro Valley Water Utility has permits to store water in Pima Mine Road, Lower Santa Cruz and Avra Valley recharge facilities. However, Oro Valley and Metro do not have wells to pump from those facilities.
Mr. Saletta indicated that although the concept for delivery to these facilities may be cheaper, it is still very costly to recharge, pump wells, build a pipeline and deliver the water to its designated locations.
Mr. Saletta indicated that Oro Valley is the farthest and at the highest level and will experience higher costs.
Oro Valley staff will meet with Metro Water to discuss whether the N.W. Water Providers will consider the possibility of pursuing a Cost Comparison Study for recharge and recovery.
Staff will organize a meeting with the Renewable Water Resources subcommittee to discuss the Cost Comparison Study.
Mr. Saletta stated, although Oro Valley is still looking at recharge and recovery on a short term basis, we will need to build a treatment plant and take a look at the larger volume of water coming through our system. We may be able to phase in this concept where the first part could be recharge and recovery.
Mr. Saletta ended his report. No Action was Required on this Item.
A question and answer session occurred.
Commissioner Shapiro asked, is having our own recharge and recovery facility taking the place of Tucson Water’s CAP wheeling? Mr. Saletta stated we will still need a short-term agreement with Tucson Water for CAP interim delivery prior to our CAP water delivery system.
Commissioner Milkey asked, is this driven by a new assessment or construction of the reservoir or funding from the Bureau of Reclamation? Mr. Saletta said it could be part of the assessment. Commissioner Milkey felt that it was an alternative plan in the event BOR’s funding did not occur. He also asked, whether there was any current information regarding federal funding or the Bureau’s approach.
In answer to Commissioner Milkey’s question, Mr. Saletta indicated that the Bureau was still looking at reliability. The federal government has an obligation under the Central Arizona Project to build reliability. The Bureau is still looking at budgeting, costs, Value Planning Study, and the reservoir.
There were no further questions, Mr. Saletta ended his report. No Action was required on this item.
Mr. Saletta reported the following:
Packet: Commission Communication dated 3.8.2010 Ref: IGA between Town of Oro Valley and the City of Tucson, regarding Water Service in the area of Oracle, Magee and Hardy Roads.
Mr. Saletta indicated that in 2004 there was potential for commercial and multi-family development along Oracle Road. Tucson Water did not have the capability to serve fire flows for commercial and multi-family use. He also indicated that Oro Valley Water Utility had the capability, but a pipeline extension was necessary. Oro Valley installed a 16-inch pipeline from Calle Concordia to Hardy in order to serve these commercial areas.
Prior to the extension Oro Valley developed an IGA with Tucson Water to provide fire flows to these specific areas. Oro Valley has been operating under this agreement since 2004. The IGA amendment proposes extending the existing agreement from 5 to 10 years.
Mr. Saletta emphasized that in terms of commercial and multi-family areas the water utilities do not determine fire flows this is determined by the fire marshals.
Oro Valley Water and Tucson Water have agreed to continue to operate under the existing Intergovernmental Agreement.
Staff requests the Commission’s support to extend the attached IGA amendment and forward it to Council after the amendment is finalized. A suggested motion has been provided for the Commission.
There were no questions.
MOTION: A motion was made by Vice Chair Davis and seconded by Commissioner Reynolds to Recomend Approval to Town Council of the amendment regarding a time extension to the IGA between the Town of Oro Valley and the City of Tucson regarding Water Service in the Areas of Oracle Road and Magee and Hardy Roads.
MOTION carried, 7-0.
Mr. Saletta reported the following:
-The first Draft of the Annual Report will be sent by email to the Commissioners 3/10/2010. The major portion of the work has been completed.
Staff would like the Commission’s comments by March 23, 2010 and all Staff comments will be finalized by March 31, 2010.
The following schedule is planned:
4/5: Finalized and print report
4/12: WUC approval
4/21: Town Council approval
Commission Consensus: The Commissioners did not have any objections to the proposed Annual Report schedule.
Councilmember Carter was not present because of a scheduled Council Study Session. No report was given.
Commissioner Tustison reported that the Finance subcommittee met February 25th and spent a considerable amount of time discussing the possible uses of the ground water preservation fees. The subcommittee determined they would need more information before making their decision.
The subcommittee also discussed the possibility of increasing the percent cash reserve level which is now 5%. This suggestion was introduced by several Commissioners and Council. However it will be presented to the Commission at a later time.
Commissioner Tustison indicated that the Finance subcommittee would like to consider raising the existing Cash Reserve level to 20% or 25% making it a much more feasible level.
Finance Subcommittee next meeting: To be determined.
Commissioner Tustison ended his report.
Commissioner Davis indicated that the Conservation subcommittee did not meet, however work still continues on several projects. The subcommittee will schedule a meeting prior to the next WUC meeting.
Commissioner Hoffmann indicated there was no Renewable Water subcommittee meeting however, a meeting date will be set.
-Meter Installations 7/1/09 thru 2/28/10
-Actual New Meter Installations Current Month = 9
-Projected New Meter Installations for FY 09-10 = 60
-Actual New Meter Installations FY 09-10 = 42
-Projected EDU’s FY 09-10 = 90
-Actual EDU's for FY 09-10 = 53
Ms. Seng ended her report.
Mr. Ruiz reported on behalf of Mr. Jacklitch.
-Innovation 16-inch Water Main Installation: This project is complete and the As-built have been submitted.
-Replacement Well E-1B Re-drill: The project includes: A plan design for equipping, sound abatement, and wall architecture. The design phase is about 90% complete and scheduled to be advertised some time in April.
-North La Canada Reservoir: - The design phase is complete and the contract has been awarded. Staff is currently working out some details with La Cholla Airpark regarding the use of their roadway.
-Project Start Date: Month of April
-24 inch pipeline construction is also on track.
-Modification of 3 pressure reducing valve stations: Staff has completed this project. The PRV stations were below ground (confined space) and have been moved above ground for easier access and better routine maintenance. Staff will continue on this project for the next few years.
Design Projects
-Lambert Lane Main Replacement and Sheraton Booster Station
-Sheraton Booster Station: Staff is currently working on several drainage issues on the Design Plans. Mr. Ruiz ended his report.
February Reports
Potable Water Report
Daily Demand/Precipitation = 4-5 million (mgd). Water demand was significantly reduced due to over 1 inch of rainfall.
Potable Overall Reservoir Storage = 7.0 million (mgd). All wells are operating well at about 50% of their capacity.
Reclaimed Water Report
-February usage dropped primarily due to the weather and rainfall. Total usage for 6 End Users = 7.629 (mgd)
Mr. Ruiz indicated that a kick-off meeting had taken place on February 25th with the consultants to review the Scope of Work. The Scope of Work has been refined due primarily to the focus on interim CAP Water supply through Tucson Water.
Mr. Ruiz gave a Power Point presentation:
Slide 1- General Overview of Scope (Primary objective of the study)
Slide 2- Phase 1 Evaluation (Tucson Water Delivery Concept) Map
Slide 3- Phase 1 Fundamental Assumptions (350 mg/l TDS vs 500 mg/l TDS) Table
Slide 4- Phase 2 Evaluation (CAP Water Integration Evaluation) Routing Map
Slide 5- Phase 2 Fundamental Assumptions (300 mg/l TDS 650 mg/l TDS)
Mr. Ruiz mentioned that there would be more meetings with the design team and consultants. The Commission will be updated as the project progresses. Mr. Ruiz ended his presentation.
Commissioner Tustison asked about the reclaimed water usage for EU-3 in January’s report. Mr. Ruiz confirmed that Stone Canyon did use a substantial amount of reclaimed water during the month of January.
Commissioner Hoffmann suggested having the reclaimed water graph for a full year because it was difficult comparing the results to previous years. Mr. Ruiz indicated he could provide the Annual graph for 2009.
Mr. Saletta clarified that in addition to their golf courses Stone Canyon also irrigated common and landscape areas which is why they have a higher volume.
There were no further questions, Mr. Ruiz ended his report.
Mr. Saletta indicated staff was still reviewing the Scope of Work and had sent their comments to Tucson Water. Tucson Water will be forwarding comments and changes to the consultants.
On March 4th Central Arizona Water Conservation District Board (CAWCD) approved the continuation of the study which maximizes the use of CAP’s canal capacity in addition to acquiring water supply from the Colorado Water River. This is a long-term process involving numerous stakeholders one of which is the Arizona Water Users Association which Oro Valley is a participant.
Mr. Saletta reported the following:
-Update on the Colorado River Basin Snowpack as of March 1, 2010.
-Update on the Arizona Snowpack Outlook Report as of March 1, 2010.
3/12: Council Special Session - Topic: Appointment Council Member
3/17: Council Meeting - (cancelled)
3/24: Council Special Session/Study Session
3/31: Study Session - OVWU Budget
4/1: AZWA Luncheon -Speaker from CAP Project (Commissioners welcomed to attend)
4/2: Blue Ribbon Panel on Water Sustainability
4/7: Town Council Meeting
4/12: WUC Meeting - Field Tour: Tucson Water facilities (Central & Southern AVRA Valley Storage and Recovery Projects, Storage reservoir and pumping station, and Hayden Udall water treatment plant) -Time 1-4:00 p.m. Staff will be requesting the Commissions feedback and confirmation via email.
The Commission will receive training credits.
-Update: Tucson Water Study on Total Dissolved Solids (TDS) and Water Quality (Commissioner Shapiro)
-Reclaimed Effluent Water Use: Obtain square footage of Stone Canyon’s golf course and irrigation areas. (Commissioner Davis)
-Email Power Point presentations. (Commissioner Milkey)
No Audience Comments.
CENTRAL ARIZONA PROJECT VIDEOS - COMMISSION TRAINING
The Commission agreed to postpone the videos.
MOTION: A motion was made by Commissioner Hoffmann and seconded by Commissioner Milkey to Approve to adjourn the meeting
MOTION carried, 7-0.