From Excellence to Exile: How Oro Valley Water Czar Abused and Forced Out a Dedicated 18-Year Employee

If this is even close to being true, then it's disgusting

The following is an email that was forwarded to us. It shows the alleged harsh treatment given long time Oro Valley Water Department employee by water czar Peter Abraham, and his staff.

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18 year employee Maryann Jacob notes how effective she and the staff was under former Water Director Philip Saletta

"My name is Maryann Jacob. I have been an Oro Valley Water employee for the past 18 years. The first 15 years of my employment were under the leadership of Director Philip Saletta and Administrator Shirley (Seng) Kiel. During that time, I received continuous reviews of excellence and multiple recognitions for superior work and dedication to the department. The atmosphere of the water department in those years was friendly and highly productive, with little to no turnover. All staff, office or field, were treated with respect and felt welcome in the positive work environment. Even the Town Manager, at that time, sent a memo saying how valuable it was to have so many long-term, experienced town employees.

Staff treated poorly under Abraham and his team

Sadly, that all changed, January 2020 when the water department leadership was taken over by Director Peter Abraham, Administrator Mary Rallis, and field Administrator David Allred. Immediately there was a different atmosphere. Instead of being "Valuable Assets" to the town, we were branded "Legacy Employees" not "fit" or "beneficial" to the Town of Oro Valley. No more daily greetings to staff from administrators, office staff were ignored, publicly criticized, harassed or threatened with termination if policy or procedures were questioned. Next, field staff and customer service staff were told they could not talk to each other, and field staff could not come into the office. Anyone in violation of this policy received an immediate phone or e-mail reprimand. Next, customer service staff were instructed not to talk to each other. Any violation received the same treatment of reprimand.

Bullied and demoted

Employees with decades of "experience" chose not to accept this treatment and quit or were fired. Those of us who stayed, hoping to "reach full retirement" were "bullied" or "demoted" to lesser responsibilities.

Passed over in favor of new staff

New staff, with only 1- or 2-months experience was given preferential treatment and participated in training for new software systems, while experienced staff were criticized for not knowing the new software even though we weren't given the opportunity to have the training. If there is any doubt about these turnover conditions, I suggest a review by the town auditors of the turnover rate for the 4 years 2021-2024 compared to the 4 years 2016-2019. I excluded 2020 due to Covid-19.

Badgered by Abraham... "When are you going to quit?”

Finally, after 2 years of constant badgering by the administrator "so when are you quitting?" and "are you going to retire soon?" I have been coerced into resigning my position at Oro Valley Water Utility; at great cost to me emotionally and financially. I had always wanted to reach my "20-year mark", but the treatment by the current administrators has made that impossible. 

Human resource department tell her to: "Deal with it” 

Going to Human Resources was no help. All HR ever told anyone who complained or who filed a Hostile Work Environment complaint was, "Deal with it".

Calls for action

I hope you rectify this situation for the benefit of the department, the town, and the customers you serve.” 

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Sticker Shock: Cost of Water Could Skyrocket Starting This Coming August

Smoothing water rate increases has been Oro Valley's history
Each year, the town raises the cost of water by 2-3%. According to Oro Valley Water Director Peter Abraham, addressing the town council last week, the objective has been to smooth rate increases over time to account for inflation and the ever-increasing cost of operating the system, so that there is no 'sticker shock'.

But next year water cost could skyrocket
Starting in August, your water bill will increase by 8.3% for some and up to 26% for others if a proposed water rate increase is approved by the council in June. Last week, the council took the first step in doing just that by approving the posting of a notice on new water rates for 2024-25.”

The proposed water rate increases are in three pieces:

• A 5% increase in the base connection rate 
• A 10% to 40% increase in the cost of the amount of water consumed, depending on how much is used. 
• A 12.5% increase in the groundwater preservation fee

In addition, these added costs are increased by the taxes residents pay on the water portion of their bills. (See panel)

Abraham notes three reasons for the need for these increases

• First, water rates that were set too low in fiscal 2023 last year causing a $843,000 shortfall in revenues. These revenues must be recouped in order to shore up required reserves. Sad but true: The less water the community uses the more the cost per gallon. That is because the water rate is computed based on an assumed number of gallons used. So, if residents use less total gallons than the projected number of gallons, as they did in fiscal 2022, the revenue raised will be insufficient to cover cost.
• Second, CAP is going to bill towns for CAP water at higher rates; and Tucson Water is increasing its fee to Oro Valley for bringing (“wheeling”) CAP water to Oro Valley.
• Third, there are needs for system improvements and these are funded on a "pay as you go" basis

Even after these increases, Abraham notes, the cost of the water component of the bill is less than that of Marana and Tucson.

The town is looking for more ways to make water even more expensive 
In the past, Abraham has stated that Oro Valley has reached a point where conservation has peaked. However, he has decided that increasing water costs will further promote conservation. He announced that the town is looking to update its water rate model. The tentative plan is to add the "Winfield Tier," a water consumption tier for usage of up to 3,000 gallons. This is the amount that the Mayor and his family use.

There will be a public hearing on the proposed rate increase in June
We do not expect any public opposition because people may not know how to oppose this type of rate increase. That will be up to the Town Council. Based on council comments at last week's meeting, we anticipate that only Council Member Bohen may mount any substantive challenge, if indeed one does happen. The rates will go into effect on August 1.

Big increase is really bad timing… Just another nail in the cost of living fisaco...The town can help if it wants to
The proposed water cost increase comes at a really bad time. Every living cost is up substantially, from the Southwest Gas bill to the cost of gasoline. Every product you buy at Fry's is 30% more than it was three years ago, and the cost of prescription medicine is up as well. Additionally, a large majority of people in Oro Valley live on fixed incomes. Perhaps the town should find a way to smooth this significant increase over several years to alleviate the burden on residents.

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Bits and Pieces

Town preparing for Pusch Ridge Golf decision

In 2021, the town council approved reopening and operating the Pusch Ridge Golf Course for a duration of three years. The conclusion of this three-year period will coincide with the end of spring, marking the point at which the town council will determine its ongoing commitment to operating the course. Earlier this month, town staff conducted a site visit earlier this month. Council members are scheduled to visit the course later this month, and town staff is diligently preparing a comprehensive analysis of the course, slated to be presented to the council in January.

The group Friends of Pusch Ridge Golf (FOPRG) is working with the town, focusing on the future: “The answer should not be whether or not to keep it open but instead what actions need to be taken to make it more environmentally sustainable. It is popular, it serves the community and it is costing the town less to operate than most other recreational assets.” (Sources: Email from Tony D’Angelo, representing FOPRG and Newsletter)

Getting a complete look at what it costs to operate the community center

During last week's town council meeting, Council Member Tim Bohen noted aa discrepancy in accounting related to the operational expenses of running the community center. Bohen highlighted the issue concerning the community center saunas, which have been non-functional for a considerable period. They require new heaters and some electrical repairs. Town is requesting that these replacements be included in the capital budget so that they can be paid from the capital fund, and not from the community center fund.

Bohen is right. As replacing a heater constitutes the substitution of an existing item, it does not qualify as a capital expenditure. The repair costs should be covered by the ongoing revenues of the community center fund and not the town’s capital fund.

Town Council should require that community center financial reports include all expenses, regardless of the fund from which they are paid. This approach would provide a more accurate representation of the true cost of operating the community center.

Barrett Reappointed Vice Mayor 

Congratulations to Vice Mayor Melanie Barrett.  Last week, the Town Council unanimously appointed her as Vice Mayor. This is Barretts fifth year of service in that role.

Liaison assignments unchanged for 2024

Each town council member is assigned a liaison assignment to one of the town volunteer boards and/or to an outside agency. The council approved the following assignments for 2024. These are unchanged from 2023.  

Garcia case being prosecuted by the City of Tucson

In October, the town "transferred" the prosecution of the case of the Town of Oro Valley v Sabrina Garcia to the City of Tucson. The town believes that this transfer prevented a potential conflict of interest with three claims that against the town that total $89.6 million.

The court case and the lawsuit stem from the March 17 vehicular homicide of Olivia Villalobos and the severe injury to her sister near the entrance of Naranja Park.  Garcia is charged with two counts under section 28-672A (M1): Accident that results in a death and accident that results in serious injury. The case is scheduled for a pretrial hearing in Tucson City Court on January 12 at 9am in Judge Verenna's courtroom 9 (case: M1041TR23040476 ).  

Candidate Handbooks available for August council election

Curious about joining the town council? Three seats are up for grabs in this August's election. To secure a spot on the ballot, you must obtain a candidate handbook and gather a minimum of 430 signatures from residents. Schedule an appointment to collect the candidate handbook by reaching out to the Town Clerk at mstandish@orovalleyaz.gov or calling 520-229-4700. Nomination papers can be submitted by candidates starting from 8 a.m. on March 9, 2024, until 5 p.m. on April 8, 2024. (Source: Town of Oro Valley Media Release)

Town to recertify 100 year DAWS designation

Last week, the town council, authorized Oro Valley Water Director Peter Abraham to seek a recertification of the town's state 100-year designated assured water supply (DAWS).  "...the designation needs to be reviewed and an application submitted to the Arizona Department of Water Resources (ADWR) to modify the designation every 10-years. During this process the demands on the aquifer over the past 10-years is quantified and a report submitted to ADWR demonstrating that the designation of assured water supply can be modified to provide another 100-years of assured water supply. This only applies to groundwater use." (Source: Town of Oro Valley Council Meeting, 12-6-23, Consent Agenda Item 3). The town currently has this DAWS designation.

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Bits and Pieces

Build-To-Rent Units are included in the determination of Oro Valley's 100 year assured water supply

This is a correction to the post that was here originally which stated that apartments are not included in Oro Valley's determination of assured water supply. That was incorrect. That "loophole" to which we refer only applies to developments in communities that do not have a state approved "Designation of Assured Water Supply." (DAWS) 

According to Oro Valley's Water Utility Director: "The Town of Oro Valley has a DAWS and therefore any developments that fall within the Water Utility’s service area fall under the requirements of the assured water supply rules. This is a good thing. It ensures that all water production and use is accounted for. No loopholes. Every year the Water Utility submits an Annual Report to the ADWR. This report documents all of the water received or produced by the Utility as well as all of the water delivered by the Utility. All water movement is accounted for and all committed demands from all user classifications counts towards our DAWS. No loopholes." (Source: email from Director Abraham.)

This is a list Arizona jurisdictions that have a DAWS. Oro Valley is listed on it.

Naranja Park entrance pedestrian safety improvements on hold

The Town has put on hold the interim pedestrian safety improvements at the Naranja Drive entrance to Naranja Park. According to Town Public Works Director Paul Keesler, this delay is a result of three lawsuits that have been filed against the town, collectively seeking damages of $89.5 million. The improvements are on hold until the attorney's "finish their work".  

It's understandable that the town is proceeding cautiously in this matter. The plaintiffs are using the recently installed north-side entrance safety path, implemented by the town earlier this summer, as evidence to support their claim that the town acknowledges some responsibility for the accident in that area.  The plaintiff may use further improvements as yet more evidence of such.

Register to participate in the 2026 General Plan Process

You should register at OVPathForward.com to participate in the 2026 General Plan process. This will give you the opportunity to participate in online discussions about important topics in the community. Also, while you are there, view the video about the plan. "The General Plan is our ‘true north’ because it is informed and shaped by the citizens,” Mayor Winfield said. “We will leverage the momentum of our success with the 2016 plan to propel us into our next decade.” (Source: Town of Oro Valley Media Release) 

Pretty rocks at Riverfront Park

An individual is painting river rocks with the names of dogs that walk at Riverfront Park. The stack is growing. You can see the fine work at left. We've been told, but have yet to confirm, that Elizabeth is the first name of the person who has created this lovely artwork.

Visit Tucson has not appeared before the Town Council since 2022

The Town of Oro Valley pays $415,000 to Visit Tucson, the group that promotes regional tourism, since February of 2022. Mayor Winfield tells us that they will appear before council "early next year."

Some key Oro Valley senior staff don't even live in Oro Valley 

We find it curious that the town's Planning Director Bayer Vella, the town's Director of Public Works Paul Keesler, the town's Water Director Peter Abraham, and the town's Director of Economic Development Paul Melcher don't live in Oro Valley. Yet, collectively, they have tremendous power over life in our town. We should think that Oro Valley residency be mandatory for anyone who holds the senior position in our town. That way they'll have some skin in the game.

Town fills three positions

The town has filled three key positions: 

• Scott Zufelt is now the Innovation & Technology (I&T) Director
• Jeffery Hidalgo is the now the Public Information Officer (PIO)
• Rosalyn Epting is the Parks and Recreation Director

(Source: Town of Oro Valley Town Manager Executive Report to Council, November 2023)

Welcome all to Oro Valley!

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Carpe Diem on Reclaimed Water

Carpe Diem

Tonight, the Oro Valley Town Council has the opportunity to designate $5.4million in restricted ARPA Funds to extend the reclaimed water system to Riverfront Park, Kreigh Park and the town owned Pusch Ridge Golf Course. This amount may not be enough to do the complete extension, but it is a start on saving millions of gallons of drinking water.

Council has done nothing to stop the outrageous use of drinking water on town parks

This council has done nothing regarding the extensive drinking water wasting that takes place at these facilities. 

 

Rather than "fast track" doing something about this, the Council let the town manager put it on the back burner to let the water director take a year to "dream" of the possibilities

On June 8, Town Water Director Peter Abraham spoke of the wondrous things and possibilities using Oro Valley's unused reclaimed water allotment could bring to the town.

At that time Abraham stated...in almost a dream state...  "When I started diving into this my mind was going to some amazing places that might be of better benefit to the community than just extending the reclaimed water system. We have an opportunity here to further ensure our sustainability. We have the resource. Let's take our time and wrestle with it." 

At that meeting, Town Manager Jacobs took charge and told the council that this was a strategic issue and that it should be added to the strategic leadership plan discussion this February. This was a delay tactic on the part of Jacobs because she wanted to use the ARPA funds for a host of other purposes. These other purposes will be discussed by town staff tonight.

Then, the town manager suggested laundering the ARPA funds through the water utility

Things did change a bit. Because in late September, two days prior to her resignation, Jacobs proposed "laundering" the restricted ARPA funds through the water utility. The money, she said, could be loaned to the water utility and then paid back. The money that was repaid was not ARPA funds, she said, so it could be used for any purpose! She said that the auditors told her this was OK to do. Really? Sounds like a laundering scheme to us. Maybe the town needs new auditors!

Meanwhile, drinking water that could supply at least 715 home is being squandered

In the past seven months, the three town owned facilities have used 35 million gallons of drinking water. That is equivalent to the use of 715 average Oro Valley homes...or... 7,150 homes reducing their water use by 10%.... or... one and a half times the total amount of rain that fell in Oro Valley this past weekend. It is a lot of drinking water!

The money is available. Jacobs is gone.  This ain't rocket science. Extend the reclaimed system.

We are we are. Jacobs is gone. This council is in control. This council can do the right thing. Fund extending the reclaimed water system. Prove that Oro Valley is the community of excellence that we are claim to be.

Drinking Water Rate Increase "On Tap" For July

The process began last night

Last night, the Oro Valley town Council started opened the spigot for a 2022 – 23 water rate increase. The increase would be effective next July.  

The Council started the process of increasing the water rate by approving a notice to all that a water rate increase is being considered. The actual approval of the increase will not happen until June when there is a hearing before council.

Increase is part of a long term plan

The proposed increase is consistent with Water Department Utility Director Peter Abraham's plan to annually increase rates in small increments rather than implementing a large increase every few years.

The bottom line: Every user will experience an increase in drinking water cost

"The financial impact of the proposed base and commodity rate increase for a customer with a 5/8-inch meter using 7,000 gallons is $1.79 per month. Customers with a 5/8-inch meter represent 87 percent of the total customer base and include residential, commercial and irrigation classifications with the vast majority of those being residential. The base rate increase would be $0.95 per month for all customers with this meter size. The proposed commodity rate increase for customers in Tier 1 would be $0.12 per 1,000 gallons used per month."

The actual cost of the increase will be greater because of the taxes and fees that are added to your water bill. Some of these, the sales tax and utility tax, are a percent of the bill.

All water users will see some increase in water rates as shown in the table above.

There is no change proposed to the cost of reclaimed water.

Oro Valley Village Center Is A Drinking Water Intensive Project

Wednesday, The Oro Valley Town Council will hold a public hearing on the proposed Oro Valley Village Center. The center is a replacement of the Oro Valley Marketplace. In preparing for that meeting, the Council held a study session on the matter on January 19. Subsequent to that meeting, council members submitted questions regarding the rezoning request. One of those questions was about water use, a topic that was not previously discussed.
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The Oro Valley Valley village center is a “water intensive” project
Town staff estimates that the Oro Valley Village Center will use an additional amount of water over what the Oro Valley Marketplace, if fully built-out, would use. That additional amount of water is equivalent to the annual water use of more than 1,600 single-family residential homes. To put that in perspective, that’s four times the drinking water that the town “wastes” watering the recently reopened Pusch Ridge Golf Course. It's more water than used in most subdivisions in the town. The panel below lists the additional uses of drinking water for Oro Valley Village Center project.

Staff assures council there is more than enough water to accommodate this project
In its responses to council, town staff assured council that “this increased demand can be supplied without impacting existing or future customers.” (Report Page 33) 

Staff determined this based on their analysis of the quantity of groundwater the State allows the town to withdraw annually (13.4 thousand Acre Feet Per year) versus the quantity that is currently withdrawing (5 thousand). The town has been able to keep its groundwater withdrawals lower than allowed “…though a combination of the introduction of reclaimed water, conservation efforts, and receiving a portion of our CAP allocation through wheeling agreements with Tucson Water.”

A few months ago, water utility Director Peter Abraham reported to counsel that he felt that further conservation efforts were not going to reduce water consumption. Abraham, however, does not foresee any circumstance in which to town will not have sufficient water to supply its customers.

CAP is in a level 1 water restriction. This restriction does not impact water delivery to residential users. Though CAP water delivery is assured for the next few years, there is no assurance that this will continue indefinitely since CAP water is likely to be further restricted in future years. CAP water is used to replenish the town's groundwater supply. CAP is by far the most significant reason the town’s net groundwater withdrawal is below the limit.

Wise water use is a council priority
Town Council is made it clear that wise water use is a council priority. This council has continued to support water conservation, approved water rates that penalize water use, continued “sin taxes” on water that add to water cost, approved regulations that penalize water wasting and put emergency procedures in place in case there is a water shortage. 

Jobs and Water Use

There are instances of communities in Arizona that have not allowed zoning changes because the water use would be far in excess of the economic benefit brought to the community. One benefit is the number of and quality of jobs a project, if completed, brings to the community. The town's economic development plan calls for increasing the number of high wage, high value jobs to the town. The estimated number and quality of jobs this project will bring to the town has not been provided to the council.

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About the council questions
Council members were asked to submit questions regarding the rezoning requests of the Oro Valley Market place at the conclusion of the study session of January 19. They submitted a total of 97 questions. Town staff categorized these questions into six areas: Apartments, pedestrian connectivity, the entertainment district, the noise study, traffic, zoning, ESLO, water, and other. Either the town staff or the applicant provided the answer to each question. The response document is 36 pages. You can access it here.

Watchdog Report: Am I The Only One Who Is Disappointed?

Disappointed?

Sometimes things just don't turn out the way we hoped...

Town Staff and Town Counsel act as if Oro Valley is desert water oasis

We’re told to “conserve water” but the town's water director tells us we have plenty of water to accomplish almost unlimited growth.

Really? Apparently Town Water Director Peter Abraham thinks we are an oasis. This is contrary to every publication in the last 12 months informing us of the extreme, prolonged drought conditions. The Council went to the Arizona League of Cities and Towns meeting last month and was briefed by the CAP on the drought issues, and the “Dead Pool” situations at Lake Mead and Lake Powell. With all this information available to the Council, they just approved a BOND to improve the irrigation system on the two golf courses. Is it more important to water golf courses or to water the farms that grow our food and grow feed for cattle.

We have a Town Council that has been factually informed that the potable water being wasted on the Pusch Ridge course this year has exceeded 18 million gallons, and has done nothing, not even a discussion to close the course. As of this writing, no council member has even acknowledged a communication that I sent to them about this subject.

The town's public works director thinks that traffic congestion is good

According to Town Public Works Director Paul Keesler, traffic congestion is good. It makes drivers slow down and, therefore, reduces any collision damage. The fact that it increases pollution and the town’s carbon footprint apparently is of no concern to him. This individual also sees no issues with the development of the Marketplace to include apartments and hotels despite how much traffic and congestion these will add to the community.

The town manager "manages" the town council

In violation of Town Policy, Town Manager Mary Jacobs would not allow two council members to amend an agenda. She has also ignored the Council policy of November 2019 that stated that we would pay for golf improvements on a “pay-as-you-go” basis and not via a bond. She completely ignored the policy and convinced the Council to bond to improve the irrigation on the two 18-hole courses and make improvements to the community center building.

The Community and Economic Development Department has done nothing of substance

Nothing. The department has not bought real wage jobs and real employers into Oro Valley. However, this department, under its prior “here today, gone tomorrow leader", convinced the Council that pre-grading lots would entice big-time employers to locate here, when in actuality, it only increased dust pollution. What a joke. Add to this the fact that the town contributes money to the Sun Corridor to help entice employers, which has shown to be another waste of money.

The barn at Steam Pump Ranch is becoming town offices

The Mayor boasts that his administration is the only Council to pay any attention to Steam Pump Ranch. His council is restoring the garage. However, the original use of the restored garage was intended for the offices of the Oro Valley Historical Society – but the Town Manager, with the concurrence of the Council, amended its usage to allow it to be used for Town Staff offices instead. Once again, the “needs” of the Town Staff come before the needs of Steam Pump Ranch.

Town Council members simply don't communicate with their constituents

We have four elected members of Council that promised to hold “Council on Your Corner” events to give you an opportunity to express your opinions one-on-one. Granted COVID put a dent into this promise, but they could have held zoom meetings. What about now? Massive changes are currently being proposed for the former Oro Valley Marketplace. This would be the perfect time for all seven council members to hold constituent meetings. Why haven’t they done it?

Aren't you disappointed too?

As Things Stand Today, Oro Valley’s Growth Depends Solely on CAP

Two things struck us as different

…during last week’s Special Study session on potential changes to Oro Valley’s Water Conservation Code. You can see Monday’s post to read our report on that session.

There were two comments by Oro Valley Water Director Peter Abraham, a person who is bullish on Oro Valley’s water situation. Abraham was responding to questions from council.

Water conservation efforts have yielded all they can

First, Abraham stated that total water use has been increasing the past three years. This, after years of decrease due to resident water conservation efforts. This during years when Oro Valley added lots of new residences and water connections. Abraham said that it looks to him like resident conservation efforts have yielded all the water saving results they can.

Yes. We agree. That is possibly true. But we also think that the Hiremath years of rampant residential growth have overtaken resident ability to use less and less water. Abraham said he is going to “keep an eye” on the situation. We hope so.

Abraham sees NWWRDS as the solution to Oro Valley’s water needs

The second thing, one that is the first time we heard this from Abraham, is that an added “source” of water to the town’s water supply is needed to safely accommodate growth in users. This added supply will come “online” in 2024. It will come from the Northwest Recharge, Recovery, and Delivery System (NWRRDS). That is a joint project with Marana that is led by Metro Water. NWRRDS will deliver up to 4,000 acre feet of water per year to Oro Valley water from a new reservoir. Turns out that that reservoir is a transfer of more CAP water from one of the CAP reservoirs in Avra Valley that store CAP water.

NWWRDS is CAP water… It’s not a new source

Yes. CAP water. So it’s not a new source.

It’s the same water source that the State’s CAP water Czar thinks will be restricted at level 2 or 3 by 2024 or 2025. Just when NWRRD comes on line. These are levels that will reduce Arizona’s CAP water allotment further and eventually Oro Valley’s water allotment from CAP.  

Abraham is counting on NWRRDS to accommodate the growth in population. But this is hardly a long-term, reliable supply of water.

A real, sustainable alternative source must be developed

We’ve studied the CAP water situation for years. We were the first to report on possible restrictions of CAP water. We concluded long ago that the Oro Valley water future is far from bright if this drought continues (which experts suspect it will) and if Oro Valley continues its path of hell-bent growth (which we believe it will).

So, as agreements on CAP water allocation stand today, CAP is not long term solution to how to supply the big growth plans Oro Valley (and the rest of the Southwest) has.

“Desal” can make the Southwest water sustainable… but will politics derail it?

The Southwest and Oro Valley can become water sustainable by moving toward Desal plants. These plants can take the brine out of brackish underground water. They can take the salt out of the ocean. But they are many political barriers that will prevent this from happening until the water crisis is so dire that something simply must be be done. By then, many of us will be “long gone.”

Oro Valley Water At 70-80% Capacity Today, But Total Water Use Increasing

Water system running between 70% and 80% capacity

The Oro Valley water system is running at 70%-80% capacity today, according to Oro Valley Water Director Peter Abraham. “We have excess capacity. We have lots of reserviors. Every night we fill them up.” The excess capacity is because of investments made since 2018 to upgrade the entire system. 

No imminent water use restrictions forseen

Speaking at last week’s council meeting, Abraham said that he does not foresee a situation in the immediate or even near term where mandatory water restrictions would be needed. Oro Valley is currently in a Level 1, Voluntary Water Conservation situation. According to Abraham, it has been so for at least a decade. 

The only time Abraham thinks a significant water restriction would happen is if there is a breakdown to a part of the system, such as a major water break in a portion of the water system that does not have sufficient redundancy to switch to an alternate supply. Every year, the department works to reduce areas where this might happen.

Water wasting not an issue

Abraham also noted that “water wasting” is not much of an issue in Oro Valley. He attributed this to the high level of water conservation ethic among the town’s residents.

Uptick in water use since 2018

The town’s total potable water use decreased annually through 2018, accommodating both existing and new users. Total water use has increased since then. “What I’ve noticed in 2019, 2020 and so far in 2021, we’ve been increasing.” Abraham is studying the data. He thinks that some of this increase is because more people were at home in 2020 because of the pandemic. Some this increase may also be because of hotter, drier summer. He plans to keep an eye on it.

Water for growth depends on NWRRDS

As for supplying water for future connections, Abraham stated that the town needs the Northwest Recharge, Recovery, and Delivery System (“NWRRDS”) to be completed. That is a project that Metro Water is leading. Marana  and Oro Valley are participating. It will bring Avra Valley CAP stored water to a reservoir that is closer to Oro Valley.  The project will annually add 4,000 acre feet of water to Oro Valley’s current 10,000 acre foot capacity starting in 2025. 

Drought Causes Water Rate Increase

Increase for both residential and golf course users

The Oro Valley Town Council approved a water rate increase last week. The increase will go into effect on July 1. The August billing will reflect the new rates. The town estimates that 87% of residential water users will see a 4% increase in the water cost each month. Reclaimed water users, primarily golf courses, will also see a 4% increase. In both instances, the water rate increases are based on the cost of serving customers.

Residential cost increase because of drought

The primary drive of the residential waterrate increase is the long term drought. One impact is on the cost of CAP water to the town. The town will experience a 20% increase in the cost of CAP water because the CAP Tier 1 shortage (see previous LOVE reports) results in fewer total CAP users. CAP costs are the same. So total cost per user increases. A second reason is the Tucson Water is increasing the cost they charge for delivering this water to Oro Valley by 4%. They will do this for each of the next 5 years. 

“Tax Multiplier Effect” makes increase greater 

The total increase in water billing will be higher than just for the water increase. This is because of the multiplier effect. That effect is caused because the town charges a sales tax and a utility tax based on dollar usage. This increases the effective potable water rate increase by 10%.

Tucson Water increases cost of Oro Valley reclaimed water 17%

Oro Valley water gets its recla imed water from the City of Tucson. The city increased their charges for reclaimed water by 17%. This is far more than the actual increase of 4% that the reclaimed water users will see. Speaking at last week’s meeting, Oro Valley Water Director Peter Abraham said that 17% cost  increase in Tucson Water’s reclaimed water is a one time adjustment based on a cost of service study done by Tucson Water. Abraham said that he has not seen this study.

Tucson Water has been in the news recently because of its position of proposing to “sock it to” water users who reside outside the City. The latest action is a proposal to substantially raise water rates (“differential rates”) to users who live in unincorporated foothills. The city has presented no cost justification to do so. Instead, it has proffered a political reason: “Differential water rates will. drive incorporation of the foothills or annexation.” (Source: Tom Stellar Article on Tucson,.com [subscription required]).

Increases golf course water cost $12k per year

The increase in reclaimed water rates has a significant impact on golf courses, the primary user. “The typical 18-hole turf customer consumes 10 million gallons of water per month.” Their monthly water bill will increase approximately $12,000 annually. This is less than a 17% increase in cost since the rate is based on the town’s own cost of service study.

Expect a water rate increase annually

Last year, the council did not approve the requested water rate increase. The council wanted to keep ratepayer burden at bay during the uncertain early days of the Covid Pandemic. This year’s increase in water rates keeps with Water Director Peter Abraham’s philosophy that annual “small” rate increases are far better for consumers than a large one time rate increase every few years.

“Best deal in town”

According to Abraham, Oro Valley Water is the “best deal in town”. It cost less than other municipalities (See panel) and the quality is excellent. In addition, he said, “we give great service.”

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For more information, see our February  report on this water rate increase.

Colorado River Water Reduction: “State of Certainty”

Arizona faces Colorado River water cuts in 2022

Arizona will face an 30% reduction in Colorado River Water allocation starting in 2022. This will happen when the US Bureau of  Reclamation, the federal authority charged with managing the supply, declares a Tier1 emergency in August. 

That declaration is a certainty

Lake Mead, the state’s primary source of Colorado River Water, is at 38% of capacity. That is five feet over the trigger shortage level. The declaration will allow Arizona take no more than 70% of its allowable water supply.

Cities should prepare

According to State Water Director Tom Buschatzke, users should be preparing for drought water reductions even though most of the water cuts will impact agricultural users first. “Despite mitigation efforts for those farmers, ag entities in impacted areas ultimately may have to reduce acreage by 30% to 40%.” Under Tier1, water banking and replenishment would also be eliminated.(source)

According to Buschatzke, there may be some locales that may want to start preparing. The drought may well last another 20 years. “It’s up to cities to put in homeowner restrictions.”

Oro Valley residents conserve

The town of Oro Valley has a very successful resident-centric water saving program. Residents can follow their water consumption daily if they wish. They can ask for and participate in water audits provide by the the town. They plant desert appropriate flora. Use water efficient drip systems. 

…Town needs to follow suit

At the same time the Town of Oro Valley advocates for growth which results in the need for even more total drinking water consumption. Recently, the town reopened a golf course that uses far more drinking water than all the water residents save each year.

The town’s water director has stated on repeated occasions that Oro Valley has enough water for the next 100 years, that the town can accommodate growth, and that it costs too much ($4million) to bring reclaimed water to the Pusch Ridge reopened golf course.  

…Could extend the reclaimed water system to save millions of gallons of drinking water

What he has failed to mention is that the Oro Valley Country Club currently used drinking water for its course. Thus, extending the reclaimed water system to Pusch Ridge would then bring this water close to the OVCC so it could also switch over. Imagine the millions of acre feet of drinking water that would save.

We wonder: Isn’t his position better suited for climates where this is plenty of water and not one facing a 20-year drought with no end in sight?

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Source

The Oro Valley Oasis

Water Rate Increase On The Horizon

Water Commission to discuss tonight

Tonight, the Oro Valley Water Commission will hear about a water rate increase from town Water Director Peter Abraham. Abraham plans to offer a water rate increases to council every year. Tonight’s discussion is the first step in the process for a 2021 rate increase.

Potable water rates would increase minimally
The cost of the water consumed will increase minimally, if a proposed water rate increase is approved by council in June. According to Abraham, a user of 15,000 gallons would see an increase of a bit more than a dollar a month. The bill would be about $42 for water. He contends that this cost is 10% less than Metro Water and Marana Water. He is making no recommendation to change the groundwater preservation fee. This is $.90 per gallon consumed. As we have noted previously, much of the cost of an Oro Valley water bill is from fees and taxes added on to the cost of water.

Reclaimed water commodity rate would increase 10 cents per thousand gallons
Under his proposal, the reclaimed water rate would increase by .10 per thousand gallons. Golf irrigation is the primary consumer of reclaimed water. A typical 18-hole course consumes 10 million gallons a month. The cost for this is almost $27,000. The proposed change would increase that to $27,930.

Potable water rate continues to subsidize golf courses

As reported last year:

"The town's reclaimed water rate is based on the cost of providing reclaimed water. However, the cost does not include 79% of the debt service cost incurred in building the reclaimed water system. According to town water Director Peter Abraham, reclaimed water would be more expensive than potable water if the the total debt service were included in the reclaimed water rate. This would provide a disincentive if the were set at this level. Town policy is to set the reclaimed water rate at the cost of service, but not more than the potable rate. Town staff and the towns' water commission are recommending to council that this policy remain."

The rate changes this year are comparable for both the potable and reclaimed water rates. This indicates that this subsidy policy continues.

Potable water cost also subsidizes golf because residents pay a sales tax on water used. A half cent of that sales tax is earmarked to support golf.

The town council will hold a public hearing in June on the rate increase. If approved, it will take effect on August 1.

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CAP Water Restrictions Should Have Minimal Impact On Oro Valley

The Arizona Department of Water Resources (ADWR) has an agreed upon plan to reduce Arizona's annual allotment of Colorado River Water from Lake Meade.  Under the plan, various classes of CAP water users be allotted less water.  One class of users, Pinal County farmers, will be hard hit. Residential and industrial users, like Oro Valley, will see minimal change in their annual CAP water allotment.

CAP water restrictions: Minimal impact on the Oro Valley
The potential reductions in CAP water availability will be trigged by the level of water in Lake Meade. The level that triggers the reduction is expected to occur in several years.

When this happens, the reduction in CAP water should have minimal impact on Oro Valley, according to Oro Valley Water Director Peter Abraham. "I'm planning for a reduction in CAP water," Abraham told us in during our interview with him last week.

Source: Town of Oro Valley

The reason that the ADWR plan will have minimal impact on Oro Valley is that the town now maintains its sustainable water supply by using 72% of its CAP water allotment. The state's plan reduces Oro Valley's allotment to 93% of the current CAP water allotment.  Oro Valley will use less than 80% of this new, lower allotment. Thus, Oro Valley's wells will be replenished in the same quantities tomorrow as they are today.

The impact Oro Valley will see is a reduction in the credits, called storage credits, the town gets for the CAP water it does use. That's currently about 2,200 acre feet (AF) per year. Under the ADWR plan, Oro Valley will get credit fewer storage credit, about 1,500AF.  That's not much of an impact, even in the long run. Oro Valley already has 22,000AF storage credits on the books!

No impact from Pinal County farmers
We also leaned from Abraham that Pinal County farmers draw from an aquifer that is not connected in any material way to the aquifer that supports our groundwater supply. There will be no impact on our water supply even if the Pinal County farmers drain their wells dry.

CAP water will cost more
The problem for Oro Valley residents, Abraham observed, "...is that water is going to be more expensive... The same fixed cost. The same infrastructure." Less water taken means greater cost per AF.
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