CALL TO ORDER - AT OR AFTER 6:30 P.M.
There were no speakers.
MOTION: A motion was made by Commissioner Reynolds and seconded by Commissioner Shapiro to Approve the May 14, 2012 minutes as written.
MOTION carried, 6-0.
Chair Milkey moved items #3 and #4 to accommodate Commissioner Reynold’s schedule.
Mr. Saletta gave some background information regarding CAGRD’s requirements and the Town’s obligation as participant in the Member Service Agreement. The Member Service Agreement obligates CAGRD to replenish water on Oro Valley’s behalf when there is excess underground water pumping. Mr Saletta explained that excess groundwater is the total amount of groundwater that is pumped less the amount that is recovered through recovery wells. He also mentioned that the more water recharged and recovery wells we have the better we are with respect to CAGRD replenishment requirements.
Mr. Saletta presented several slides depicting how CAGRD is being utilized throughout the year and increasing rates over the years.
-OVWU/CAGRD Factor
-OVWU/CAGRD Payment Cost in $
-CAGRD Cost Per Acre Foot
-CAGRD Groundwater (AF) & CAGRD Factor
-CAGRD Groundwater (AF) & CAGRD Payment ($)
-Comparison Showing OVWU Savings Achieved By Using Long Term Storage Credits
-Contrast CAGRD Cost/AF and Contract Factor
Mr. Saletta pointed out that in the Member Service Agreement beyond 2014 there are no CAGRD excess water requirements and that the Town was not obligated to use CAGRD.
Commissions' Points of Interest
Definition of a Recovery Well
Oro Valley recovery well increases in the future
Reclaim water correlation to groundwater and recovery wells
5,500 a/f sustainable water level affect recovery wells
CAP water allocation and future projections
Purchases of Long Term Storage Credits are they considered as capital expenses or O&M
CAGRD long term viability will it diminish
Who receives the CAP $15.00 acre foot component?
Mr. Saletta gave a breakdown of CAGRD costs per a/f from year 2006 through 2016. Mr. Saletta pointed out that due to the increasing CAGRD rates Oro Valley must use CAGRD less and continue to use its recovery wells. We also need to purchase groundwater extinguishment credits to build our Groundwater Allowance Account and continue to use the credits minimize the payments to CAGRD.
This year’s payment to CAGRD could be as much as $300,000.
Ms. Seng presented a slide showing OVWU savings achieved by using Long Term Storage Credits (LTS) versus non use year 2004 through 2011. Ms. Seng explained how the utility receives LTS credits by recharging approximately 1000 - 4000 a/f of CAP water to Kai Farms and other recharge facilities such as the Lower Santa Cruz Recharge Facility and Pima Mine Road Facility.
Mr. Saletta pointed out that the utility paid out $800,000 but by transferring LTS credits to CAGRD we saved over $500.000.
Ms. Seng also mentioned that the utility had a balance of approximately 12,000 a/f of LTS credits in 2011.
The utility will transfer 951 a/f LTS credits which will reduce our payment to CAGRD to $297,000 versus the $450,000 in year 2011.
Mr. Saletta mentioned that the member service areas would eventually like to reduce their use of CAGRD as they develop renewable water resources. The remaining credits can used for CAP direct delivery and recovery wells and be transferred or sold. Mr. Saletta gave a brief overview about the member lands which are direct customers of CAGRD and are not a member of CAGRD through a member service area. He explained that CAGRD also had obligations to replace water for those lands also.
Mr. Saletta summarized that the utility will have to pay $666.00 a/f for excess groundwater in year 2014 however the less we use CAGRD the better off we will be. We will continue our recharge efforts and build our LTS credits, develop renewal CAP water, use CAP through our recovery wells and purchase groundwater extinguishment credits for the future. Mr. Saletta ended his report.
Chair Milkey mentioned that the structure was design to force members to utilize renewal water resources and it also allows the use of paper water.
The Commission unanimously agreed to cancel July and August Water Utility Commission meetings. Mr. Saletta mentioned that Council will also be in recess from June 20th to September 2012. He mentioned that the Finance Subcommittee, Water Resources and Conservation Subcommittees could still hold their meetings during this period if necessary. Staff will also be working on the Water Rates Analysis Study.
Commissioner Hoffmann mentioned that the Water Resources subcommittee will have a meeting to discuss several templates staff is currently working on.
Commissioner Tustison mentioned that the Finance subcommittee will hold at least two meetings to discuss details of the Water Utility’s FY 12/13 Budget and the Water Rates Analysis. Ms. Seng also mentioned that a Conservation subcommittee will also have a meeting.
MOTION: A motion was made by Vice Chair Tustison and seconded by Commissioner Shapiro cancel the July and August Water Utility Commission meetings was made.
MOTION carried, 6-0.
Mr. Saletta reported that the Assured Water Supply allows the Utility to approve plats and also states that Oro Valley's assured water supply allocation is 17,384 a/f per year. In 2011 the Utility used over 9,990 a/f (2,256 reclaimed water, 7,734 potable groundwater). The 2003 Arizona Department of Water Resources AWS application will expire in June 2013 and will need renewal.
Mr. Saletta mentioned that if the original 17,384 a/f per year needs modifications the Town is allowed to make changes any time.
Staff will be working on the application process during the summer. At this time no action is needed by the Commission. Mr. Salletta will discuss this item with the Town Manager and whether Council approval is required.
There were no questions or discussion.
Councilmember Hornat mentioned that the Assured Water Supply application should be explained if it is presented to Council.
He reported on the following:
-6/11/2012 Design Review Committee
-Cancellation of July and August Council meetings
Councilmember Hornat ended his report.
Commissioner Tustison had no report.
Commissioner Reynolds had no Report.
Commissioner Hoffmann had no report.
Ms. Seng reported on Customer Service Report - May 2012
-Current Meter Installation -Actual New Meter Installations -Actual EDU’s as of 5/31/2012 -Current Meter Replacements -Water Audits
Ms. Seng ended her report.
Mr. Jacklitch reported on several capital projects: Campo Bello Main replacement and Rancho Vistoso Reclaim Chlorine Storage Facility. Mr. Jacklitch ended his report.
Mr. Ruiz presented several slides on the Potable and Reclaimed Water Systems which included: -Total Water Production Report; -2011-12 Monthly Water Production Report; Reclaimed Water Deliveries; -May 2012 Daily Demand & Average Reservoir Storage no precipitation events recorded; -Reclaim Water Deliveries. Mr. Ruiz ended his report.
| a. |
Colorado River Basin Streamflow |
Mr. Saletta presented information on the Arizona & Colorado River WaterWatch monthly streamflow. Mr. Saletta ended his report.
-Water Resources, Finance Subcommittee and Conservation Subcommittee meetings will be scheduled in the near future
-6/20: Town Council meeting
-9/10: Water Utility Commission Meeting
Mr. Saletta ended his report.
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.