MINUTES
ORO VALLEY WATER UTILITY COMMISSION
REGULAR SESSION
Monday, December 13, 2010
HOPI CONFERENCE ROOM
11000 N. LA CAÑADA DRIVE
CALL TO ORDER - AT 6:05 P.M.
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PRESENT: |
Dave Powell, Chair
Robert Milkey, Commissioner
Richard Reynolds, Commissioner
Elizabeth Shapiro, Commissioner
Winston Tustison, Commissioner
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| EXCUSED: |
Richard Davis, Vice Chair
John Hoffmann, Commissioner
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STAFF PRESENT:
Philip C. Saletta, Director
Shirley Seng, Utility Administrator
David Ruiz, Engineering Division Manager
Jim Peterson, Water Utility Regional Coordinator
Chair Powell introduced C. Caton as new Assistant Town Manager.
Chair Powell congratulated Commissioner Milkey who received an award for Volunteer of the Year in Oro Valley. He also acknowledged Commissioner Tustison who also was nominated for Volunteer of the Year.
Commissioner Davis was recognized for his participation in the Citizens Academy Training.
Commissioner Shapiro was recognized as a Volunteer for the Oro Valley Water Utility Office.
There were no speakers.
MOTION: A motion was made by Commissioner Shapiro and seconded by Commissioner Tustison to Approve and accept the November 8, 2010 minutes as written.
MOTION carried, 5-0.
Ms. Seng reported that on November 17th Council approved the rates for New Meter Installation Fees and New Service Establishment Fees which will go into effect December 18th.
The Groundwater Presevation Fees for Potable & Reclaimed will become effective October 1, 2011.
The Water Rates Analysis Report FY 20-11 projects revenue from the GPF to be $2.3 million. The revenue projections without the GPF increase for this fiscal year will be $1.9 million with an approximate shortfall of $350,000. In the first 4 months of FY 11-12 the Utility will experience an additional shortfall of $175,000. The total shortfall that will be realized from the delay in the GPF increase is approximately $525,000. Ms. Seng ended her report.
Commissioner Milkey asked what is the schedule for the next water rate increase due to the delay?
Mr. Saletta mentioned in accordance with Council’s policy Staff must review water rates every year and forward them to the Commission and then to Council for approval.
Mr. Saletta indicated that the schedule will be the same for Water Rates Analysis next year. He also mentioned that based upon the current Water Rates Analysis there is a projected commodity rate increase in the next fiscal year.
Commissioner Tustison requested an explanation regarding the reasoning for delaying the GPF.
Councilmember Hornat explained that the Council's general consesus was that the golf courses were the hardest hit by the rate increases. Council recognized that the golf courses are part of are part of the economic engine that keeps Oro Valley going. They also felt it was an unfair to impact one particular business. This was the reason why they decided to delay the GPF.
Councilmember Gillaspie supported the GPF because everyone must pay their fair share for water. We live in the desert; if the golf courses can’t afford to aborb the costs then their future is in trouble. These costs will continue to rise and he didnt see any reason to put the increases off.
Commissioner Tustison mentioned that it was important for the Commission to understand what Council feelings were.
Councilmember Hornat explained that it wasn’t the rate but the timing of the increase, and they were also concerned how much it was going to affect the community as a whole.
There were no other questions. No action was required on this item.
Mr. Saletta reported that in October and November, the Commission was given an update regarding an agreement with the Central Arizona Water Conservation District regarding CAP Water delivery reliability.
He explained that Oro Valley will receive its CAP reliability at the Lower Santa Cruz recharge facility. This agreement resolves issues regarding reliability during planned outages for the maintenance of the canal’s pump stations approximately 30 days during the year.
The Reliability Agreement includes language that if any Northwest Water Provider including Oro Valley decides to build a treatment plant directly off the canal, they will be assured CAP realiability. The reliability would be accomplished by canal storage, or by-pass pumping stations or other means.
The agreement also allows Tucson Water to receive their reliability water at Pima Mine Road and this resolves a 12,000 acre-foot per year reliability amount for the Central Arizona Water Conservation District (CAWCD).
The Northwest Providers has about 2,278 af. Oro Valley has assurance for both recharge and recovery and direct treatment and delivery off the canal if we built the treatment plant in 20 years. Oro Valley’s allocation is 834 af per year.
Mr. Saletta pointed out several areas in the Reliability Agreement, Pargaraphs G, 3.1 and Article 8.
Mr. Saletta discussed several aspects of the CAP canal storage.
Mr. Saletta indicated that Staff requests and recommends that this agreement be forwarded to Council for approval.
Commissioner Milkey asked upstream from Twin Peaks where is the next pumping station? Mr. Saletta indicated it was Red Rock. A brief discussion also occurred regarding the Town of Marana’s 124 af of CAP reliability amount.
There were no further questions. A Motion was requested.
MOTION: A motion was made by Commissioner Reynolds and seconded by Commissioner Shapiro to Accept that the Agreement for the Tucson Area Reliability among the Central Arizona Water Conservation District, City of Tucson, Flowing Wells Irrigation District, Metropolitan Domestic Water Improvement District, Town of Marana and Town of Oro Valley to Town Council with a recommendation for approval.
MOTION carried, 5-0.
Mr. Saletta mentioned the power point presentation in the Commission’s packet. This information represents several of the brainstorming items discussed at last month’s meeting. The third slide also includes staff’s suggestions.
Mr. Saletta reviewed the Comprehensive Water Resource Plan:
-Assured water supply -Protecting and preserving our aquifer -Renewable water supply, costs of developing renewable water -Proposed schedule and timeline, water quality considerations -Public process and information for our customers, -Cooperation with Northwest Water Providers -Cooperation with Tucson Water (wheeling) -Opportunities to develop our CAP water independently -Financial considerations related to projected costs, future debt and future water rates and fees -Reliability of CAP deliveries
Water Utility Commission comments:
-Water Conservation -Monitoring of Aquifer (describe in plan) -Communication Plan -Expansion of reclaimed water system -Reliability of CAP water (CO River issues) -Develop outline of each alternative plan -Financial information is preliminary -Growth projections related to timing and full build and impact on water supply -Energy conservation (O&M costs) -Growth policy (stop gaps, more growth or not) -Drought Preparedness Plan
OVWU Staff comments:
-Update the potable water system master plan to include the use of CAP water project infrastruction -Update the Groundwater Action Plan -Discussions with Tucson regarding how long they could provide interim delivery (10 years versus 5 years) -Develop Well Operations Plan
-Staffing levels will need to be evaluated with implementation of any renewable water resource project
Mr. Saletta requested additional comments from the Commissioners.
Commissioner Tustison requested that the comprehensive plan just include the use of CAP water and it be discussed in a more comprehensive and simplified manner. He suggested the following:
-Review each of the processes considered as ways to utilize CAP water
-List the short/long term positive and negatives for each program
-List preliminary cost projections
Commissioner Tustison felt it was very important to give everyone the opportunity to ask questions and receive feedback regarding these alternatives. He also suggested having a special meeting or Joint Study Session to discuss the issues.
Commissioner Reynolds agreed that there was extensive material to cover but by minimizing the list to CAP Water and alternatives it would be much better.
Chair Powell suggested the possibility of a Joint Study Session with Council and the Commission. Mr. Saletta mentioned that a Joint Study Session was being planned.
Mr. Saletta reviewed staff’s comments. He mentioned that the intent was not to have a new Potable Water System Master Plan, Groundwater Action Plan, Well Operations Plan or staffing plans now. However all these areas could be covered within the CAP development plan.
Mr. Saletta acknowledged Commissioner Tustison’s request not to include the expansion of reclaim water system at this time. Commissioner Milkey explained it could be done in the near future and requested that the issues be covered separately.
Commissioner Milkey stated, we have CAP water, do we want to deliver the maximum into our system and reduce groundwater pumping as soon as possible? We need to know what are our strategic goals and not necessarily the tactics. Do we want delivery as soon as possible or gradually?
Commissioner Reynolds felt that the Commission and Staff’s input could be part of the Comprehensive Water Resource Plan long term. However, CAP issues should be addressed separately at a Joint Study Session. He felt CAP issues needed more attention.
Chair Powell said there needs to be more planning with Council to see what their priorties are. If it’s not a priority it could be something the Commission can do and present to Council at another time.
Commission Reynolds felt that from a water resource planning standpoint none of the items should be dropped off the list. Mr. Saletta explained that staff will focus more on the CAP related issues in the next Study Session. Several of the conceptual ideas will include scheduling, water quality, a plan for public process also develop an outline for each alternative plan including a table with the advantages and disadvantages.
Staff will look into the reclaimed system issue as a long term component. We must look at delivery of CAP water through Tucson Water’s delivery system as a short term goal.
Chair Powell asked should we have an item to discuss logistics and whether to have Council participate or not? Chair Powell felt that this issue could be presented in January, but would need more planning with Council.
Councilmember Gillaspie commented there was a lot of material to cover espcially with CAP delivery being most important. He felt the Commission and staff needed to work on the critical components before presenting it to Council.
Councilmember Gillaspie mentioned that Staff and Commission have been working on technical issues and perhaps the connection with Council has been severed a bit. It is important to keep open lines of communication with Council because we may or may not understand the situation as well as the Commission. We must remember that water policies are established by Council. The Commission must give us their best recommendation if they move forward with CAP water or any other alternatives such as water wheeling or recharge and delivery.
Chair Powell agreed that the Commission must do their due diligence to work on the alternatives and frame work before moving forward to Council.
Councilmember Hornat indicated that Council’s puts a lot of responsibility on Staff and Commmision and that Council does not understand all the technicalities with water. The Commission must outline their alternatives and goals and develop some sort of discussions with Council.
Commissioner Tustison felt there were a number of important issues not directly related to CAP and felt that the other issues could be discussed at a later time with the Commission.
Chair Powell requested that the issue of CAP Water and logistics be presented as an agenda item for the next scheduled meeting.
Mr. Saletta will review the items on the brainstorming list and have them available for January’s meeting and forward it to the Commissioners via email.
Mr. Saletta indicated that the Joint Study Session could possibly take place in March or April due to Council’s schedule.
Commissioner Milkey requested that a decision tree or an outline of the alternatives regarding the wheeling of Tucson’s CAP water be presented to the Commission, how it is going to be utilized and what type of approach or decision making is going to take place. It would make things much clearer to present to Council.
Mr. Saletta indicated that Staff will be focusing their effort on CAP water recharge and recovery, direct treatment and all costs associated with these alternatives.
There were no further comments. No action was required or taken on this item.
Councilmember Gillaspie felt that preservation and protection of the aquifer was most important and that there was urgency now to come together with our strategies and approaches. We need to address this and move forward. He also felt that reliability probably wasn’t as important as preserving and protecting the aquifer and bringing in CAP water.
Councilmember Hornat agreed that Council was very concerned about getting CAP water delivered to Oro Valley and preservation of the aquifer.
Commissioner Tustison had no report.
Commissioner Milkey had no report.
No report was given.
Ms. Seng reported on the Customer Service Report
Meter Installation as of November 30. 2010
-Total Metered Connections: 18,469
-Projected New Meter Installations for FY 10-11: 75
-Actual New Meter Installations as of November 30: 28
-Projected EDUs for FY 10-11: 94
-Actual EDUs as of November 30, 2010: 53
-New metered installation summary: Residential: 20
Commercial: 5 Irrigation: 3 Turf: 0
Total FY: 28
Ms. Seng ended her report.
Well replacement E-1B: Construction is proceeding as scheduled. This well will be up and running by the summer in time to accommodate summer demands.
N. La Canada concrete buried reservoir: La Canada Reservoir is a 3.0 million gallon reservoir and is one of the biggest built to date. The reservoir will play an important part in stabilizing the west side of town. It will also play a major part with CAP water deliveries and storage. The pouring for the concrete floor is scheduled this week.
N. La Canada 24" offsite water main: The contract was excuted. Construction will begin the end of December. Location: Moore Rd. and King Air Drive.
Campo Bello Water Main Replacement: The Design plans are now in place. Location: South of Calle Concordia. This area has no fire flow. The homeowners have been very cooperative and realize that they will now have fire flow protection.
Lambert Lane Water Improvements: This project has been delayed. There will be several water lines that will need relocation and several may need to be upsized. This project will take place in conjuction with Public Work’s roadside improvements.
Reclaimed Water System - November 2010
-South Hilton pond has been on line for 6 months
-Year to Date Total: 621.0 million gallons
Mr. Ruiz indicated that depending how the golf courses manage their irrigation next year reclaim water could be about 2200 to 2500 af per year. The green project team will be changing the pump controls at the reclaim reservoir.
Potable Water System - November 2010
Total Daily Demand: 6.5 million gallons per day dropping off to 5.0 million gallons.
Precipitation: No rain event
The overall system is designed to meet the daily demands and maintain fire flow capacity.
Mr. Ruiz ended his report.
-1/5: Town Counil meeting
-1/11: WUC meeting
-1/12: Joint Council meeting with Marana Issues: Water Transportation and Economic Development -Time: 6:00 pm Location: Marana Town Hall
-1/28 or 2/11: Reclaimed Water Users Forum
Mr. Saletta ended his report.
-Communication Plan and Public Outreach Topic: CAP Water and the Commission's role. Possible agenda item per Commissioner Milkey.
-Update: Think Tank Meeting (P. Saletta)
-Schedule speakers to discuss Colorado River issues. Schedule: January or February’s WUC meeting.
-Update: Lake Mead status (Commissioner Shapiro)
Chair Powell requested that Staff send a letter on behalf of the Commission thanking Brian Henning and Mitch Basefsky for the field tour to CAP Twin Peaks Pumping Plant & Lower Santa Cruz Recharge facility.
Oro Valley resident Ron Todd asked what was the overall outlook for Oro Valley Water over the next 10 years and future years. Chair Powell indicated that Mr. Saletta would be glad to talk with him regarding this issue.
NEXT MEETING: January 10, 2011.
MOTION: A motion was made by Commissioner Tustison and seconded by Commissioner Shapiro to Approve and adjourn the meeting.
MOTION carried, 5-0.