There were no speakers.
The Commission had no changes to the April 9, 2012 minutes.
MOTION: A motion was made by Commissioner Davis and seconded by Commissioner Reynolds to Recomend Approval of the April 9, 2012 minutes.
MOTION carried, 4-0.
Mr. Saletta mentioned that it would be a good opportunity to give the Commission an update on water quality since recently all the reports were mailed to all the water customers. Mr. Saletta introduced Charlie Soper the utility’s Lead Operator in the Water Quality area.
Mr. Soper indicated that he was a Grade 4 operator and that the Water Utility had about 7-8 Grade 4 operators the highest certification to operate within the Sate of Arizona.
Mr. Soper presented a power point on water quality and covered the following areas:
Reviewed: Water Quality EPA Contaminant groups, Physicals water quality perimeters (pH, TDS, temperature, chlorine levels and hardness) -Baseline (emergency response WQ data) taken at all wells and reservoirs
Reviewed: Water Quality Status Monitoring frequencies- Oro Valley’s assigned year for monitoring - 1995. EPA sets Maximum Contaminants Levels, reporting limits and treatment techniques. Oro Valley Water Utility’s water is considered safe and meets all EPA requirements
Reviewed: 2011 Water Quality Results and groups were sampled during 2011. This data was used for the 2012 Consumer Confidence Report (CCR). Mr. Soper pointed out that the Utility had no bacteria violations for the past 11 years.
This year the Water Utility began its connection to Tucson Water's Blended CAP water (January 24, 2012) and also began its computer modeling and ongoing physical sampling. The Utility will also be setting up an EPA database for 2013 Unregulated Contaminant Monitoring Regulation (UCMR). All utilities within the United States must begin sampling under (UCMR). The Compliance Monitoring Plan must be submitted to the State and the Water Utility must begin sampling under stage 2 by October 2012.
Reviewed: Water quality results with Tucson Water’s Blended CAP - The Water Utility focused its effort on Total Dissolve Solids (TDS) and water hardness in Oro Valley. Mr. Soper also explained that TDS levels and hardness have increased with Tucson’s blending of CAP water.
Mr. Soper explained that in 2009 the EPA limited or eliminated the phosphates in dish washing detergent. The Water Utility has been performing ongoing flushing of mains, and ongoing water quality monitoring. The blended CAP water and Oro Valley’s water meets all EPA Requirements for safe drinking water.
Reviewed Map display: Mr. Soper explained that the Tucson Water reservoir was located near Ironwood H.S. He also outlined certain areas in Oro Valley where blended CAP water was being delivered. He also pointed out the areas where water hardness was occurring and where customers were complaining about their dishwashers. The Water Utility will continue to closely monitor water hardness and water quality throughout the areas.
Reviewed: Water Quality Status Getting ready for 2013
-Heavy sampling schedule (estimate 6,000 samples), Sample all contaminant groups at all Point of Entry (POE’s) lead and copper, UCMR sampling begins, Begin Stage 2 Disinfection Byproducts Removal (DBPR)
There was discussion regarding:
-Outsourcing and could the Water Utility perform its own sampling and laboratory testing in house (Commissioner Reynolds). Mr. Saletta explained that the Water Utility was rather small to do its own testing. We are currently using Turner Laboratories.
-If there is heavy sampling in year 2013 do we need more personnel and is it in the budget (Chair Milkey). Mr. Saletta mentioned that the costs for laboratory testing have been factored into the budget.
Ms. Seng reported that the Water Utility is required to mail all Consumer Confidence reports to bill paying customers, potential consumers (grocery stores, Doctor’s offices, and all commercial entities that are not bill paying.
Mr. Soper ended his report. Mr. Saletta thanked Mr. Soper for his excellent work in water quality.
Mr. Saletta reported that the Commission at the last meeting requested as a future agenda item to discuss the Oro Valley Water Utility Budget. At the last Council meeting May 2, Council approved the Tentative Budget. The final budget approval is scheduled for Wednesday, May 16th.
Chair Milkey mentioned that the item was provided for information purposes only and that no action was required.
Ms. Seng reported that the Water Utility was an Enterprise Fund. The Utility’s FY 12/13 recommended budget is comprised of three funds: Water Utility Operating Fund, Alternative Water Resources Development Impact Fee Fund, and Potable Water System Development Impact Fee Fund.
Reviewed: Alternative Water Impact Fee Funds Revenues - Groundwater Preservation Fees: $2.4 million, Impact Fees:
$219,000, Expenditures: $1.8 million, O&M and Capital: $324,000
Reviewed: Potable Water Development System Impact Fee Fund - Revenues: $118,000 Debt Service Expenditure: $632,000
Reviewed Operating Fund - Water sales projection: $11.7 million, Service charges: $475,000 Interest: $175,000 Expenditures - Personnel: $2.5 million, O&M: $6.6 million, Capital: $3.1 million, Debt Service: $2.8 million. Ms. Seng mentioned that since the Utility’s capital expenditures were much higher than the total revenue the utility will use cash to help fund capital projects.
She identified several of the Capital Projects, Operations & Maintenance expenses and Debt Service.
Reviewed: A graph depicting Oro Valley Water Utility’s Total Operating Fund Budget: $14,610,541
Reviewed: A graph depicting the total budget for the Oro Valley Water Utility Operating Fund and the two Impact Fee Funds: $17,442.916
Provided packet information:
-Oro Valley Water Utility’s Operating Budget, Potable Water and Alternative Water Resources Impact Fee Funds. Ms. Seng also gave an overview regarding the goals and highlights of the Water Utility. A copy of Oro Valley Water Utility’s Organizational chart was also provided.
Questions and answer session occurred:
-Potable Water System Development Impact Fee Fund balance will it support expenses for coming years. (Chair Milkey). Ms. Seng mentioned with the reduction of the refunding process the $600,000 debt service expenses will be significantly reduced.
-Fleet vehicle replacement (Chair Milkey). Ms. Seng reported that 4 vehicles will be replaced this year.
-Meter Replacement Project (Chair Milkey). Ms. Seng reported the meter replacements will probably begin with the oldest meters in town which coincides with specific billing cycles. There were no other questions, Ms. Seng ended her report.
Mr. Saletta gave an update on ADD Water CAP water and Groundwater Extinguishment Credits
The purpose of ADD Water is to Acquire Develop and Deliver Colorado River water through the existing Central Arizona project canal (non CAP water). There is a CAP ADD Water process and an ADD Water Stakeholders Coalition. The concept is to look at infrastructure expansion such as pump stations, operations and cost analysis with a goal to deliver 300,000 acre-feet per year of additional water through the CAP system.
Mr. Saletta mentioned that there was a need for more supply and acquiring Colorado River Water would be the source. The focus of ADD Water from CAWCD's perspective is on wheeling non-project water through the CAP system. This involves the Bureau of Reclamation and CAWCD.
CAP Water is available through the reallocation of Non Indian Agricultural water (NIA). Approximately 96,000 acre-feet will become available later this year through a recent water rights settlement. About two-thirds of this amount would be available to municipal and industrial water users. There is an application process to acquire this water and it is expected to begin in November of 2012.
The Towns’ previous purchases of extinguishment credits have stabilized the Groundwater Allowance Account (GWA). Additional purchases are budgeted in FY 12/13. These purchases would reduce the need for CAGRD in the future and reduce costs. Mr. Saletta indicated that after the approval of the budget he will check into the availability of these credits and in the fall or by the end of the year he will bring it back to the Commission.
Mr. Saletta mentioned that he will discuss all the details of these items with the Water Resources Subcommittee and will update the Commission. Mr. Saletta ended his report.
Chair Milkey, thanked Councilmember Gillaspie for his ongoing participation and interest in the Water Utility Commission.
Councilmember Hornat mentioned that the town’s budget was the only big item on the Council’s Agenda for Wednesday, May 16th.
There was no report.
Commissioner Davis had no report.
Commissioner Reynolds had no report.
Ms. Seng reported on the Customer Service Report - April 2012, Projected Meter Installations, Actual EDU’s as of 4/30/12, Meter Replacements and Water Audits. Ms. Seng ended her report.
Mr. Saletta reported on several capital projects: Lambert Lane 16" inch Water Main Improvements: 68% complete, -El Conquistador Booster Station: 97%complete will be on line by next week; -Campo Bello Main replacement: 25% complete and trenching work and pipe installation is ongoing; Rancho Vistoso Reclaim chlorine storage facility has a bid opening 5/22/2012. The Water Utility is working with Parks and Recreation and Development Infrastructure Services on Steam Pump Ranch water line installation.
Mr. Saletta present several slides on the Potable and Reclaimed Water Systems which included -Total Water Production; -2011-12 Monthly Water Production Report; -April 2012 Daily Demand Operations Report and Precipitation events; -Reclaim Water Water Deliveries.
Mr. Saletta presented information on the the following topics: -Arizona Water Watch monthly streamflow; -Colorado WaterWatch streamflow; -Arkansas, Colorado and Rio Grande Basin Mountain Snowpack May 1, 2012; -Arizona and Colorado Current Snow Water Equivalent; -Lake Powell Elevations Historic and Projected Most Recent Inflow Projections; -Colorado River Water Storage. The snowpack is very low and runoff is very early. Mr. Saletta ended his report.
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Colorado River Basin Streamflow and Snowpack |
Mr. Saletta reminded the Commission about the Community Academy to be held on 5/17/2012 Time: 6:00 p.m. Location: Council Chambers. Additional training credits will be given to all attendees.
5/16: Town Council meeting -Agenda item: TOV Budget
5/24: Closing of the 2012 refundance of 2003 Senior Lien Bonds
6/06: Town Council meeting -Agenda item: New Council members
6/11: WUC meeting