CALL TO ORDER - AT OR AFTER 6:00 P.M.
There were no speakers.
MOTION: A motion was made by Vice Chair Tustison and seconded by Commissioner Davis to approve the September 10, 2012 Minutes.
MOTION carried, 6-0.
Ms. Seng gave an overview regarding the Advanced Metering Infrastructure Project. The following items were covered:
Project Description -Contracts (communication equipment, Meter installation) -Customer web portal - Schedule -Update on pilot project
Ms. Seng described several components make up AMI Metering Project, such as the stationary antenna with electronic meters and smart point transmitters that receive and transmit data. Ms. Seng pointed out the billing cycles in Oro Valley designated for meter replacement and explained the phased in approach as it relates to the utility's billing cycles.
The first phase will be cash funded for about $800,000. The Water Utility will submit a loan application to WIFA for about $4.5 million for the remaining phases of the project.
There will be two separate contracts: Dana Kepner will be responsible for the equipment & meters. The Utility will be using Tucson Water Job Order Contract for the meter installation. Water Utility staff will negotiate the job order contract to better meet our needs.
Ms. Seng described the customer web portals (Viewed 3 potential vendors: Kortech, Sensus, Aquahawk).
Ms. Seng gave a general description of the project's schedule.
Update on the Countryside Service Area AMI Project. Reviewed: comparisons between 2011 and 2012 for 8 months, Lost and unaccounted for water down by 2%. Leak adjustments down 50%.
Several photos were shown of the tower, bay station, meter box.
Commissions' Points of Interest
-AMI installation in the La Reserve area (Chair Milkey). Staff indicated that La Reserve area will be included as part of the meter replacement.
-Do you get a better price if there is bigger volume? (Vice Chair Tustison). Staff indicated that it was an existing job bid with no proposed changes in the pricing.
-Can we review what the savings might be realized by administering a water conservation ordinance? (Commissioner Davis). Staff indicated the ordinance can be reviewed but the new ordinance pertains only to commercial entities and Homeowner associations.
-What was the cost for Aquahawk web portal (Commissioner Shapiro). Staff did not have the price available.
-Is the web portal a purchase or annual maintenance? (Chair Milkey). Staff indicated it was a purchase plus annual maintenance fees.
-How many AMI faulty meters were there in the Countryside area? Staff indicated there were approximately 13 faulty meters that were replaced. Mr. Saletta emphasized how successful the Countryside project was and how important the phasing in of the new project will be.
-Hiring of meter contractor, installation and follow up. Staff indicated they will be need to get a local and independent contractor.
Ms. Seng mentioned that once the AMI project is complete staff will have time to keep up with equipment maintenance, valve exercising, assisting with pipeline work and help other divisions in the utility. Ms. Seng ended her report. No action was required on this item.
Chair Milkey felt that in fairness to the customers all areas in the Town should be upgraded in a reasonable length of time. Ms. Seng indicated that the areas with the oldest equipment will be worked on first and the rest would follow. Once the contract and plans are in place the work will begin immediately.
Mr. Saletta presented several slides regarding ADWR Goundwater Model for the Tucson Active Management Area. The model showed various areas of the TAMA that had significant draw downs in the groundwater table.
Mr. Saletta presented several maps depicting future water level changes during period of 2010 thru 2025. He described the west side of Tucson Mountains where the groundwater levels had risen.
Mr. Saletta pointed out that even though there were recovery wells in the Tucson area the model did not show the movement of wet water to the areas of demand.
A discussion occurred:
-The purpose of the groundwater model was to look at the balance of the water level versus withdrawals.
-The groundwater model being used as a tool to balance the aquifer not the water levels.
-How is this State report being used in a policy setting way? (Chair Milkey). Commissioner Hoffmann explained that being in Tucson's Active Management Area we are mandated to reach safe yield by 2025. Mr. Saletta mentioned that ADWR was trying to balance the entire TAMA in terms of volumes.
Mr. Saletta explained the following:
-ADWR GW Modeling versus OVWU Concerns. ADWR used 4 wells for the purposes of Oro Valley's increased pumping instead of all the wells in Oro Valley.
-Reviewed: Oro Valley's Assured Water Supply 15,000 AF demand projection in Year 2025 and Year 2031 demand projection 17,384 AF. Staff believes the amount of 22,500 AF per year in 2025 is extremely high and does not reflect what Oro Valley's growth rate could be for this period.
-What's is the time line and resolution for these outstanding issues? (Vice Chair Tustison). Staff was not certain when ADWR would revise its model and when they would address these types of issues with TAMA.
Mr. Saletta mentioned that ADWR groundwater demands were higher than we projected and did not include our delivery of wet water, they also had to adjust their groundwater levels and not all wells were used. They also must incorporate our wet CAP water in the future. Staff will also continue to discuss the growth data base projections and water use analysis as well as any other issues with ADWR.
Mr. Saletta emphasized that the purpose of the presentation was to keep the Commission and Council informed about the misleading results of the ground water model. Mr. Saletta ended his report. No action was required on this item.
Mr. Saletta gave a power point presentation regarding ADWR Process for Central Arizona Project Non-Indian Agricultural Water.
Mr. Saletta reported the following:
-Non-Indian Agricultural Water (NIA) is water is Central Arizona Water currently runs through its canal and is delivered for Non-Indian agricultural use, and a portion of it is now becoming available.
-NIA water is available for municipal and industrial water users and could be allocated to areas outside the CAP service areas (Maricopa, Pinal and Pima County).
-CAP NIA Water totals 96,295 AF and 51,962 AF could be available to other municipal users.
Mr. Saletta mentioned that staff is currently reviewing NIAs availability and pricing. It will be presented to the Commission and Council for their recommendation and final approval.
Mr. Saletta presented several slides:
-Key regulatory agencies: Arizona Department of Water Resources, Central Arizona Water Conservation District and US Bureau of Reclamation.
ADWR Presentation CAP NIA Water Availability
-Schematic of Delivery Arizona's Colorado River Allocation of 2.8 Million AF (Indian Demand, M&I Demand)
-Mainstem Water Projections: Scenario A & B (2030)
-
-2012 NIA Reallocation Water Supply Analysis Graph (Projected NIA Priority Demands 2012 thru 2111)
-Reallocation of 96,295 AF NIA Priority Water - Oro Valley can apply for part of the 96,295 AF NIA Water
Proposed Schedule:
12/17/2012: Final Reallocation Policy and application information
02/18/2013: Application for Reallocation deadline
01/02/2014: Department to submit recommendation to the Secretary of Interior
-OVWU Evaluation of CAP NIA Water Next Steps & Proposed Schedule.
-Review Water Supply Portfolio -Develop plan for use -Determine amount to request -Analyze benefits and costs -Review with Water Resources Subcommittee (November 2012) -Review with Commission (January, 2013)
-Request Council Approval (February, 2013) -If approved, apply by (February 18, 2013)
-NIA Pricing Components ($/acre-foot) = $2,288 per AF.
Commissions’ Points of Interest:
-Can NIA water be used as storage in a recharge facility? (Chair Milkey). Staff indicated that it could be stored.
-How firm is $2,288 per AF pricing and when is CAP making its final determination?(Chair Milkey). Staff indicated that the amount could change but more will be known in December.
-If the water is purchased and not needed can you resell to someone else? (Commissioner Verlaque). Staff indicated that Oro Valley has the right to whatever water is stored in ground to dispose of it as they wish, but when the water is purchase you should save it and use it.
-When will access to the wet water begin? (Chair Milkey). Staff indicated that it could be available in 2014. Generally, CAP would like its money up front or in a finance plan.
Commissioner Verlaque indicated that you have an asset in the ground that may be worth doubled in 20-35 years from now and perhaps could be sold for $5,000 but is sitting in the ground with definite potential use. Since this is an asset and worth a lot of money can it be used to finance the cost of buying it? Mr. Saletta mentioned that bonding agencies want to see that we have water supply in order to approve a low interest rate loan but the water generally can not be used as collateral.
-Discussion occurred about how much water will be needed.
-Who pays for the purchase of this water? (Chair Milkey). Staff indicated that it could be paid through Alternative Water Resources Impact Fee Fund & GPF.
Commissioner Shapiro indicated that it was important to use CAP's allocation first before paying for NIA water.
Staff will plan to arrange a Water Resources subcommittee meeting regarding CAP NIA water. Commissioner Hoffmann suggested a follow up meeting with the Finance Subcommittee.
Chair Milkey suggested a review of the water supply portfolio that the amounts are justified and planned.
Mr. Saletta mentioned that CAP could approve a loan for a 5 year period and that WIFA could possibly approve a loan for a longer period.
Mr. Saletta ended his report. No action was required on this item.
Chair Milkey mentioned that the item was being presented for final comments only.
Ms. Seng mentioned she did not see the need for further discussion on the item but was open for comments prior to finalizing the report. Commission members had no suggested changes to the report.
Vice Tustison was pleased that the report stated the need to review water rates and to develop the Cost of Service Study in order to set rates for next year.
Chair Milkey felt that it was a nicely prepared document.
Ms. Seng ended her report. No action was required on this item.
The Water Utility Commission unanimously agreed to reschedule their meeting of November 12th because of the Veteran's Day Holiday to Tuesday, November 13, 2012.
Councilmember Hornat reported on the following topics:
-Meeting with State lands regarding Arroyo Grande possible acquisition and annexation of 500 acres out in Thornydale and Tangerine, -Discuss Zoning and PAD issues
-Council's approval of the Assured Water Supply Application
-Council's approval of the EEZ (Economic Expansion Zone) for Innovation Park.
Councilmember Hornat ended his report.
Commissioner Tustison had no report.
Commissioner Davis had no report.
Commissioner Hoffmann had no report.
Ms. Seng reported the following:
Customer Service Report - September 2012:
-Total Metered Connections of 18,657 - New Meter Installations of 28 -New EDU's of 41 -Meter Replacements of 54 - Water Audits 8
Ms. Seng ended her report.
Mr. Ruiz reported on the following:
Construction Projects: -Campo Bello Main Replacement (Tie in of 4 Culdesac (Includes 1 served by Metro Water and 3 along Hardy served by Tucson Water)
-Chlorine Storage Facility: Location - Rancho Vistoso reclaim area.
-Lambert Lane Water Main Replacement: (Waterline is complete)
Design Projects
-Tangerine Hills: Contracted engineering firm. Location: Tangerine &Tangelo valves will be replaced and new hydrants will be installed.
Mr. Ruiz ended his report.
Mr. Ruiz reported on the following:
-Annual Water Production Report thru September 2012
-2011-12 Monthly Water Production Report
-Daily Demand Operations/Precipitation Report - September 2012
-Reclaimed Water Deliveries -September 2012
-Reclaimed Water System - September 2012 (Decrease demand for reclaim water user E1). Mr. Ruiz ended his report.
Tucson Water Director, Alan Forrest, and Oro Valley Water Utility Director, Philip Saletta, have signed an extension letter in accordance with the 2010 amendment to the Intergovernmental Agreement. Staff will have a year to work out all the details of the amendment to the Reclaimed IGA.
Mr. Saletta reviewed the Colorado and Arizona River Water Watch September 2012 monthly stream flows.
CAP Total System Contents - Reviewed several area reservoir capacities and elevations for Lake Powell and Lake Mead.