Opinion: Oro Valley's Water Is A Strategic Resource

In the near term, the Oro Valley Town Council and staff will be holding strategic planning meetings. We think that water should be on the agenda. Specifically: How should the town best deploy Oro Valley's water capacity for the benefit of the community?

We've provided a basis for this discussion though our past three water articles. The first article asked whether Oro Valley has plenty of water. The second article analyzed why Oro Valley's water is very expensive. The third article,"Western States Drought Could Restrict CAP Water", discussed how the current prolonged Western US drought could impact Oro Valley's water supply.

This article is our opinion of the strategic positioning of Oro Valley's water capacity.
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Water is a shared resource. It is not an economic development weapon.
A colleague of ours, an Oro Valley resident, shared some thinking with us about our town's water cost. Our colleague is relatively new to Oro Valley. "Boy, Oro Valley water is expensive" my colleague observed. Continuing: "I never even looked at the water bill when I lived in Michigan. But here, I have to budget to pay it and we don't use that much water."

Our Response: "Welcome to Oro Valley's de facto property tax where your pocketbook's punished because of inverted water rates, two monthly water fees and three different taxes."

To add insult to injury...

While Oro Valley homeowners pay excessively for the privilege of water, while they scrimp on water use, while they invest in water saving devices, the head of the Town of Oro Valley's water department, Peter Abraham, touts that Oro Valley's water supply is sufficiently ample to support annexation, annexation that could result in thousands of new homes using all that water capacity that residents so carefully built through conservation and investment.

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Using water to encourage growth is an insult to residents who have worked so hard to conserve water use...and it's dangerous
Residents are insulted.
Oro Valley residents have been told for years that water is a scarce resource. We live in the desert. Water should be conserved. We agree.

The 2016 "Your Voice, Our Future" General Plan also agrees. This voter approved vision or our town calls for water conservation. Annexations, land use changes, and zoning changes are not part of the plan. In fact, these types of changes go against the plan for they encourage, not conserve total water use.

Encouraging water use is dangerous.
The question must be asked: Can Oro Valley maintain a long term sustainable water supply if it does not have Central Arizona Project ("CAP") water?

CAP water is truly the only renewable water source Oro Valley has. But, is it a reliable source? Will it continue forever?

CAP water is an important source of Oro Valley's water. For example, CAP water was 21% of the water delivered in the third quarter of this year (Source: November 2018 Town Manager's Report, p 13). That is 21% less groundwater that would have been drawn from Oro Valley's wells had there been no CAP water.

There is an extended Western States drought that could result in CAP water restriction as soon as 2020. The drought is real. It shows no sign of abatement.

The danger of encouraging more and more rooftops is in assuming that CAP Water supplied to Oro Valley will continue forever.

There is water available because we, the residents, have made it so
Oro Valley has a decent water supply because residents of Oro Valley have been forced to conserve use through water rates and taxes that punish water use; and because they have paid for investment to bring CAP water to our town.

Our Opinion:
Use water for the purpose that the general plan intended: Conserve and supply water for growth based on current land use and current zoning.
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Building Oro Valley's Water Supply... A Team Effort Over Many Years (Part 2)

CAP Water becomes essential to Oro Valley's Water Supply
Oro Valley’s water supply was not created through a single project or decision. It is the result of decades of planning, investment and regional cooperation. In this two-part series, LOVE examines how that system developed. Today, we look at how Central Arizona Project water became an essential part of Oro Valley’s supply.

First came the water rights
The Central Arizona Project canal reached the Tucson area in 1991, but CAP water did not begin flowing into Oro Valley’s system for another 21 years. Before that could happen, the Town had to secure the right to receive it. Oro Valley obtained its current annual allocation of 10,305 acre-feet through four transactions: 1,652 acre-feet with the 1996 purchase of the Cañada Hills Water Company; 642 acre-feet when it assumed management of the Oro Valley Water Improvement District in 1999; 4,454 acre-feet through a 2002 settlement with Tucson at a cost of approximately $5.96 million; and another 3,557 acre-feet through a federal and regional reallocation agreement in 2007.

Tucson Water provided the delivery route
Owning CAP rights did not solve the delivery problem. Building a separate treatment plant and pipeline system would have been enormously expensive, so Oro Valley reached an agreement with Tucson Water. Under that arrangement, Tucson Water recovered and treated CAP water and moved an equivalent amount through its existing system to connections with Oro Valley, a process commonly called “wheeling.” The first connection was completed in 2012, when approximately 1,283 acre-feet of CAP water were delivered to Oro Valley customers and groundwater pumping fell by approximately 1,573 acre-feet—more than 500 million gallons—compared with the previous year. Additional connections completed in 2014 and 2018 increased the amount of CAP water the Town could receive.

Click to enlarge

CAP water changed how the system was managed
Oro Valley did not have to deliver its entire CAP allocation directly to customers. Water not immediately needed could be sent to regional recharge facilities and stored underground. Some could be recovered during the same year to offset groundwater pumping, while water stored for more than a year generated long-term storage credits. Those credits give the Town the legal right to recover an equivalent amount from permitted wells in the future. By the end of 2025, Oro Valley had accumulated an estimated By the end of 2025, Oro Valley had accumulated an estimated 39,908 acre-feet of long-term storage credits. That is equivalent to approximately 13 billion gallons of water, enough to supply about 144,500 typical households for one year, based on the Town’s estimate of 7,500 gallons per household per month.  For customers, the credits function much like a water savings account: a shared reserve for droughts, emergencies and possible reductions in CAP deliveries.

Groundwater remains a key part of the system
CAP water did not eliminate Oro Valley’s use of groundwater. Wells remain an important part of the Town’s water portfolio. The difference is that groundwater is no longer the Town’s only major supply. Oro Valley now relies on a combination of groundwater for drinking-water service, CAP water delivered through Tucson Water or stored and recovered from regional recharge facilities, and reclaimed water [see note] used primarily for golf courses and other large irrigated areas. According to the Town, groundwater pumping declined approximately 56 percent between 2005 and 2022, even as the community continued to grow.

CAP water did not end Oro Valley’s water challenges. It changed them.
The transition took two decades. During that time, Oro Valley created its Water Utility, acquired CAP rights, negotiated delivery through Tucson Water and invested in the infrastructure needed to reduce groundwater pumping and store water for the future. That planning gave the Town a more diverse and resilient supply, but it also tied Oro Valley’s water future to the Colorado River. The Town must now protect both its local aquifer and the distant reservoir system that supports its CAP water. 

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Note: Reclaimed water reduced demand before CAP deliveries began
Between 2003 and 2008, Oro Valley invested $21.8 million in a two-phase reclaimed-water delivery system, financed through what was then the Town’s largest bond issue. The separate “pink pipe” network brought treated wastewater to golf courses, parks and school fields, replacing groundwater and drinking water previously used for irrigation. 

Oro Valley began negotiating with Tucson for wastewater-effluent rights in 2000 and entered a cooperative agreement in 2002. Reclaimed-water deliveries began in 2005 and later expanded through a the newly created and separate network of reservoirs, pumping facilities and signature purple pipes serving golf courses, parks and school athletic fields. Because the reclaimed-water system is completely separate from the drinking-water system, its principal value is replacing potable water that otherwise would have been used for large-scale irrigation. The Town estimates that reclaimed water reduced the use of drinking water for turf irrigation by 26 percent.

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In Oro Valley, Water Is A Challenge But There Is Plenty For Which To Hope

Some hope for an increase Colorado River water

As you know, demand for Colorado River Water exceeds supply. One reason is that Colorado River Water is oversubscribed. There are seven states, Mexico, and various tribes that draw from it. That is a total of 40 million people and 5.5 million acres of farmland that rely on it. 

The second reason is a 23-year drought, some of which has been alleviated with the extensive precipitation this winter. "Colorado's current snowpack is at 128%. Some parts of Utah have reported over 200% of their snow-water equivalent compared to average. When the snow melts, it will eventually flow into the Colorado River and help alleviate reservoir stress." (source)

Keeping the power working is the main focus of efforts regarding CAP Water

This is good news but it will take many more years of extensive precipitation to make Colorado River Water a long-term reliably supply. Thus, the need for continued effort to ensure that the water levels of Lake Meade and Lake Powell stay high enough to allow continued electric generation. 

The seven states have been given a deadline by the US Bureau of Land Management (BLM) to develop guidelines to do just that. This effort is called "reclamation."  Six of the seven states have submitted a plan. California, the big dog in the Colorado River water take, has not yet agreed to anything. Essentially, the plan reduces the water take of each state when the water levels of the two lakes reach specific levels.  Arizona continues to take big hits even under this plan.

Purified reclaimed water is a potential source of drinking water...Scottsdale is an example

During a discussion with Council last June, Oro Valley Water Director Peter Abraham mused at the possibility of purifying reclaimed water and putting it back in the drinking water supply. That is what Scottsdale does with some of its reclaimed water.  They call it "indirect potable water use." (Not “toilet to tap”)

The Scottsdale Advanced Water Treatment Plant ".. takes tertiary effluent from the city’s conventional water reclamation plant and further treats it through ozonation, membrane ultrafiltration, reverse osmosis and ultraviolet photolysis."  Scottsdale built the plant in 1998. The plant created 1.7 billion gallons of purified water last year. It comes from treating reclaimed water. (Source) That water is recharged into the aquifer. It is not directly put into the water system, though a 2018 Arizona statute allows them to do so. The drinking water treatment plant is part of the Scottsdale Water Campus.

Desalinated water is also on the horizon

Oro Valley Council Member Mo Greene discussed desalinated water at February 1 council meeting. "All of us have been following water pretty closely." Referring to the map at left: "If you follow the blue track, It goes down to Rocky Point (Puerto Penasco), where they are beginning to look at a desalinization plant, which could be brought by pipe up to Phoenix...this is something you may want to keep an eye on." According the Greene, speaking at this past Friday’s Council strategy session: “Desalinated water is in our future whether you like it or not.”

The "they" to which Greene referred is the State of Arizona. "Arizona officials voted to advance a $5.5-billion plan to build a water desalination plant in Mexico, as well as a 200-mile pipeline and associated infrastructure as part of a state effort to address its drought-driven water uncertainty" The State will finance this through a new organization called the Water Infrastructure Finance Authority (WIFA).  Desalinated water can be made available by 2027.

The plan is to pipe water to two new reservoirs west of Phoenix. From there, the water would enter the CAP canal, flowing to Phoenix, Pinal County and Tucson. Some of the desalinated water would go though a separate pipeline to Hermosillo. The plant, constructed and operated by IDE Technologies, would provide 300,000 acre feet annually at a cost of about $2,500 per acre foot. That's less than a penny a gallon. The cost is about two times the cost of non desalinated water.

...but what to do is fraught with politics and environmental "concens" and cost concerns....

The problem with all this is that it is fraught with politics. The Puerto Penasco plan is merely an idea at this point. There is no commitment to do anything.There is only a commitment to study it.  There are other alternatives, like using the water to swap with Mexico's Colorado river take. And the water is costly. And there are environmental impacts. And the desalinization process uses lots of electricity. Here's a CNBC report on why desalinization is a "bad idea".

Still, it's a start at resolving a long term water issue that will plagues our desert communities. 

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LOVE Is Right! Water Is An Issue... The Water War Is On

Water Is Problem
LOVE has been "carping" about water being a strategic issue that Oro Valley must consider. It was not considered as part of the 2016 General Plan because it was simply overlooked.

Water is an issue because CAP water is going be restricted.  When will restrictions take place? As soon as 2020. Arizona could lose as much as one seventh of its Colorado River water allotment, based on the latest agreement among the state that draw from Lake Meade. (source)

Governor Ducey agrees
Governor Ducey stressed water as a strategic issue (source) on is visit to Tucson three weeks ago. He addressed it two weeks back when he unveiled the state's 2020 budget. He also specifically identified it as an issue when he was sworn in earlier this month. “Nearly four decades ago, in 1980, Arizona’s accelerated water consumption forced a sobering ultimatum from the federal government: reform or suffer severe water cutbacks. The can could not be kicked any further.” (source)

Arizona has not "reformed." It uses more water than ever.

Pinal County farmers will draw water exclusively from groundwater 
Pinal County farmers grow  "water hungry" cotton. They grow water hungry cantaloupe. They are going to lose substantial portions of CAP Water allocations and they will be allowed to draw water instead from the ground.

"Under the proposed drought plan, about 200 Pinal farmers are supposed to return to full groundwater pumping for the first time in more than 30 years. That would begin in 2022, after the third year of shortages in Central Arizona Project water deliveries to them from the Colorado River." (Arizona Daily Star)

How will this impact Oro Valley's groundwater supply?
Water is fungible. It moves below ground. It seeps. Pressure and gravity move it.  Take two buckets of water. Connect then with a straw. Hold one above the other. The water flows until the water levels are at equal height from the ground. Water flows the same underground.

Oro Valleys' wells may seem far away from the farms of Pinal County. They are not. We suspect Oro Valley's pockets of well water will be impacted negatively when wells, maybe ten miles north of us, start a drawdown.

There will be less CAP water for Oro valley and it will cost more!
CAP water restriction will impact Oro Valley's water supply and its water plans because Oro Valley uses CAP water to recharge the ground water supply. You can read our many recent postings on this to understand the details. Those "last in" to get water from CAP will probably be the "first impacted." Arizona was last in. Oro Valley was last in our region to use CAP water.  And, we don't drink it. We use it to replenish our wells. So, other will likely argue that Oro Valley doesn't really need CAP water.

When CAP restrictions take place, CAP water is going to be more expensive (Source). This finding was presented at the November 18 meeting of the CAP Board of Directors. The reason for this is that the fixed costs of operating the system will stay the same. However, there will be less water drawn. So, the cost per water unit will be higher.

What are Oro Valley's plans for this eventuality?
We are meeting with Oro Valley Water Director Abraham next week. We will discuss his perspectives on this water crisis and the impact on Oro Valley's present and future water supply. We will let you know his thoughts.

Oro Valley Plans Now For Potential Water Use Restrictions Later

The drought is 22 years and counting
The Southwest and the Western US is in a 22 year long drought. It is severe. It is the second longest drought in recorded history. There is no end in sight. Even one or two rainy years won’t solve the drought problem. 

The drought has impacted CAP water

The drought problem won’t be solved unless there are substantial continuing high snow pack, slow melt years in the Rockies. It’s the snow pack melt that provides the bulk of water to the Colorado River system (CAP). It is a system that has seen the slow, continuing decrease in water levels in its two primary lakes: Lake Powell and Lake Meade. 

Oro Valley is dependent on CAP water

CAP water was first introduced to Oro Valley in 2012. Given it’s extensive growth, Oro Valley has not become dependent upon it. By 2020, it was 33% of Oro Valley water. CAP water is used to replenish Oro Valley’s groundwater. Oro Valley’s ground water would not be sustainable without CAP Water.

Tier 1 CAP water system-wide restriction will start in January

As LOVE has reported, the US Bureau of Reclamation, the federal agency responsible for administering CAP, will implement Stage 1 CAP water delivery restrictions when water levels in Lake Meade 1075 feet above sea level. State CAP officials expect that the BLM will make this decision in August for January implementation. This will restrict agricultural water users in terms of the quantity delivered. 

The Tier 1 restriction will not effect Oro Valley’s CAP allocation

It may affect how that allocation is used since the Tier 1 restriction bans CAP water use for replenishment. If this is the case, then Oro Vally Water may have to used this water directly.

Town Council to consider changes to water conservation code “in light of drought…and in expectation of future CAP water delivery curtailments”
Wednesday, The Oro Valley Town Council will take a first step in recognizing the potential impact of the 21 year drought on Oro Valley’s water supply. Later stage CAP restrictions, if they occur, will reduce Oro Valley’s CAP water delivery. The council will discuss, in study session, possible changes to Oro Valley’s water conservation code (article 15-18) 

“In light of the 22-year drought experienced by Arizona, and the expectation of future Central Arizona Project (CAP) water delivery curtailments that could someday affect Oro Valley's CAP deliveries, the Water Utility Commission and staff recommend that now is a good time to update the water code with respect to prohibiting water wasting, the imposition of water restrictions during a Town declared potable water shortage and impose penalties for failure to comply with water conservation requirements during a Town declared potable water shortage.”

Proposed water conservation code change would make water wasting illegal... subject to fines
“Water wasting” (see panel above) would be illegal under the proposed code. The code defines four levels of enforcement regarding water wasting. Essentially, the property owner has six weeks to fix the problem before any fines are levied.The water department, not the police, are responsible for this enforcement.

Wednesday: Proposed code changes specify restrictions in declared water emergency

The bulk of the proposed ordinance regards when the water utility can declare a water emergency, the level of emergencies that it can declare, and the actions that it it will take. This is important because it tells us what to expect if the drought continues. This will be the subject of our posting Wednesday. 

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.

Lake Powell's Low Water Level Matters to Oro Valley

Low water level is sending Oro Valley a warning
Oro Valley is not facing an immediate water shortage, but the weakening Colorado River system could reduce the Town’s future flexibility and increase water costs.

Lake Powell’s decline is becoming more serious
Lake Powell is again moving in the wrong direction. The Bureau of Reclamation projects that the reservoir will end the 2026 water year at about 22 percent of capacity. The expected inflow for the year is just 36 percent of average. The reservoir is not merely a recreation destination hundreds of miles from Oro Valley. It is one of the two major storage reservoirs supporting the Colorado River system and the Central Arizona Project water delivered to communities across central and southern Arizona. 

CAP water changed Oro Valley’s water future

Oro Valley began receiving CAP water through the Tucson Water system in 2012. In 2023, the Water Utility purchased its full annual CAP entitlement of 10,305 acre-feet. Of that amount, 2,573 acre-feet were recovered and delivered through the potable water system, representing 27 percent of the utility’s total water production. Other CAP water was used to replace groundwater pumping or stored for future use. By the end of 2023, Oro Valley had accumulated an estimated 34,493 acre-feet of long-term storage credits. Credits are an accounting right, administered by the Arizona Department of Water Resources, that allows the Town to recover an equivalent amount of water from permitted wells when needed.

There is no immediate Oro Valley water shortage
The present situation does not mean that Oro Valley residents are about to turn on their faucets and find no water. Arizona is operating under a Tier 1 Colorado River shortage, but the reductions have fallen primarily on agricultural and other lower-priority CAP users. Municipal and industrial users continue to receive most of their allocations. Oro Valley also has groundwater wells, reclaimed water, storage credits and an annual CAP entitlement of 10,305 acre-feet. That diversified portfolio gives the Town protection against a near-term interruption. 

The first loss may be water stored for the future
The more immediate risk is not necessarily a reduction in water delivered to existing customers. It is a reduction in the CAP water that Oro Valley can recharge and save for later. Water Utility Director Peter Abraham told the Town Council in June that the utility was preparing for a possible 20 percent CAP allocation reduction. He said current customer deliveries could be maintained, but less unused CAP water would be available for storage. That would gradually reduce the reserve Oro Valley has built for future droughts, growth and emergencies. 

NWRRDS improves delivery but does not create water
The Northwest Recharge, Recovery and Delivery System will strengthen Oro Valley’s ability to recover CAP water stored west of Tucson and move it into the Town’s water system. The regional project is expected to provide Oro Valley with capacity to recover and deliver as much as 4,000 additional acre-feet annually. That should reduce groundwater pumping and give the Town greater control over its water deliveries. NWRRDS does not create another source of water. It provides a better way to deliver CAP water, and CAP water still depends on the condition of the Colorado River. 

Lake Powell is a warning, not an immediate crisis
Oro Valley has prepared better than many communities for water uncertainty. It has reduced groundwater dependence, accumulated storage credits and invested heavily in regional infrastructure. Still, Lake Powell’s decline cannot be dismissed as someone else’s problem. A smaller CAP allocation could mean less water stored for the future, greater reliance on groundwater and storage credits, and higher costs for purchasing, transporting and recovering renewable water. Oro Valley is not running out of water. However, the renewable supply on which the Town increasingly depends is becoming less certain and more expensive. That makes conservation, reclaimed-water expansion and careful growth planning just as important as ever. 

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Council Identified Five Concerns Regarding a Vistoso Trails Water Feature

Five concerns
The town is exploring the possibility of adding a water feature to the Vistoso Nature Preserve, a concept discussed during last week’s council meeting and covered in yesterday’s article. Based on councilmember remarks during that discussion, it appears a water feature faces five challenges before gaining a council majority approval.

1. Is there enough reclaimed water?
Securing enough reclaimed water is a critical concern for the proposed water feature. At the meeting, Mayor Winfield stated that such a feature could require up to 76 acre-feet of water annually, costing nearly $70,000 each year. Town staff noted that the town is now using nearly all its annual reclaimed water allotment. Only10 acre-feet remain available. Thus, if Winfield is correct, and there no assurance that he is correct, there is not enough reclaimed water for a water feature.

2. Will cost be comparable to a desert garden?

When it comes to cost, the comparison here must be to building and maintaining a desert garden. Here's what we know so far about the issue around cost and a water feature.
Construction Cost
Mayor Winfield believes that building a water feature would be a significant financial undertaking. He believes that “re-creating, operating, and maintaining an artificial pond would cost significantly more than restoring the area to a natural state.” Initial cost would include rehabilitating pumps, liners, and other infrastructure if needed. 
Ongoing Maintenance Cost
In addition to construction cost, operation and and maintenance expenses could place a long-term strain on town resources. The cost of water replenishment alone is estimated to cost $70,000 annually. Councilmember Nicholson noted at the meeting: “Ponds can be more expensive to run… it’s definitely more expensive to build than desert revegetation.” This underscores the importance of ensuring the water feature’s cost is at least comparable to creating the desert garden.

3. Will the feature receive a matching grant?
The council has prioritized obtaining matching grant money for the preserve’s restoration. The Land and Water Conservation Fund (LWCF) offers potential funding. However, staff feedback from Arizona State Parks suggests that a pond may not score well in the grant process unless it includes recreational uses like fishing or kayaking. Consequently, according to town staff, Arizona State Parks has recommended focusing on the desert garden concept, which provides more recreational opportunities and, therefore, a better chance of securing funds.  The council has never discussed self-funding a water feature or a desert garden.

4. Is this use of water consistent with town policy?
The town’s zoning code prohibits ornamental water features, emphasizing water conservation. Councilmember Jones-Ivey highlighted this challenge: “If we apply for a grant for fishing or however we’re going to use this pond, and we don’t get awarded that grant, are we then considered an ornamental water feature?” If so, would the town's ordinance not permit that?

5. Will a water feature send a mixed message on the town's commitment to water conservation?
Adding a water feature may contradict the town’s water conservation efforts. While residents are urged to conserve water, the town uses millions of gallons annually on parks and golf courses, which has drawn criticism in the past. Some of this water is drinking water; though in this case, the water that would be used as reclaimed water. Incorporating a water feature risks amplifying this perceived inconsistency and undermining the town’s credibility on conservation issues.

Some other Concerns
Other, concerns include whether the water feature fits the preserve’s natural desert setting, its potential impact on wildlife, increased maintenance demands, and whether the town's residents see it as a valuable use of limited resources.

The council is between a "rock and our place"
The entire discussion of a water feature is indeed very challenging. At the meeting, Vice Mayor Melanie Barrett emphasized the need to balance community desires with environmental responsibilities: “We need to ensure that any development aligns with our commitment to water conservation and the preservation of our natural resources.”

Residents: Are you up for the challenge?
Installing a water feature in the abandoned pond area faces hurdles before gaining approval. None of these, however, are insurmountable. One thing we know is that there’s much more than logic at play in this decision. Residents will need to stand up and make their case. Will they turn out in large numbers to convince the council that a water feature is essential? Are they willing to contribute financially to its maintenance and operation? This is something that supporters of operating and maintaining the town’s golf courses have done. In the past, Vistoso residents have shown their willingness to “put their money where their mouth is.” After all, they contributed $2 million to the purchase of the Preserve. These questions remain unanswered for now, but the next council discussion on this topic is sure to be interesting.

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Taxes, Add-On Fees, and an Inverted Rate Schedule Make Oro Valley Water Expensive

Taxes, add-on fees and an inverted rate schedule make Oro Valley water expensive
Oro Valley residents have successfully managed water use. One reason is that water is expensive in Oro Valley. To the consumer, saving water means saving money.

Water is expensive because Oro Valley water cost is based on an inverted water rate schedule. To that, the town adds taxes and fees. The result: Water cost approaching $6 per thousand gallons.

Here's how it works.

Oro Valley's inverted water rate schedule penalizes water use by increasing cost as more water is used

Oro Valley uses an inverted water rate schedule. Each added step in water use is more costly per thousand gallons than the last. This is also called an inverse, or "progressive" rate schedule.  

An inverted water rate schedule is used by many communities as a way to reduce water use by providing the financial incentive to use less water.

The benefit to the town is that an inverted water rate schedule likely increases total revenues because there are some who simply do not conserve water.

Five taxes and add-on fees add 41% to the water cost
20 years ago, Oro Valley water cost included two taxes: A sales tax and a superfund tax. Since that time:

• 2003: In October, the town instituted a groundwater preservation fee of 21 cents per thousand gallons used. This fee increased every year until it got to 95 cents per thousand.
• 2007: In May, the town added a utility tax of 2%. At that time they chose not to show the tax separately on the bill. They included it with "sales tax."
• 2008: In February, the town instituted at stormwater fee of $2.90 per month.
• 2011: The town added another 2% to the utility tax. It is a 4% tax.

The result is today's fee and taxation level:

• $4.50 Stormwater Fee
• 8.5% Sales Tax
• 90 cents per thousand gallons Groundwater Preservation Fee
• .17% Superfund tax 
• 4% Oro Valley Utility Tax

Water taxes and fees have grown substantially
Over the years, the taxes on water and the fees added to the water bill have grown from 5% of the cost of water in 1998 to 41% of the cost of water today.

Today, an Oro Valley resident using 12,000 gallons of water per month pays an overall average of $5.68 per thousand gallons of water.  $1.66 of this is for taxes on water and fees. $4.03 is for water. (See chart above)

Today's overall average total water cost of $5.68 per thousand gallons is far more than the $2.52 per thousand gallons paid in 1999.

Oro Valley increased its water cost in June
Oro Valley upped water rates in June.

More money for the town.

Less money for the homeowner.
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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 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.

CAP Water Makes Oro Valley Water Sustainable... For Now

Is Oro Valley immune from the drought?

Many of us who live in Oro Valley take our drinking for granted. We turn on the tap. Water comes out. We know that the Western US is in the midst of a 20 year drought; but we’ve been told by the Town of Oro Valley that we have noting to worry about. Oro Valley has a sufficient supply of water for the next 100 years. 

One would think that Oro Valley residents are immune from the drought. But are we?

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We see evidence of the drought around us

The result of the 20-year drought is around us. Prickly pear plants are withering. Desert flowering this spring is far less than we’ve seen in past years. Trees are late to bloom. Our desert plants are in trouble and there is nothing we can do.

Oro Valley’s drinking water supply is sustainable because of CAP

How Oro Valley gets its water and where we get it from matters. We’re not Seattle. We’re not Portland. We’re not Boston. We, unlike them, live in the desert. Even in a good rain year, Oro Valley gets no more than a foot of rain in total. In a bad year, like the one’s we are experiencing we get far less.

Our water supply is not naturally replenished by rain. If the town draws more water from the ground than gets back into the ground the the total supply decreases. 

Fortunately, Oro Valley also gets water from the Colorado River Project (CAP). It is Oro Valley’s only other source of potable water. CAP was 33% of the total drinking water produced in 2020.

Oro Valley uses the water it gets from CAP to both replenish its ground water and to provide for current consumption.  CAP has made the town’s drinking water supply sustainable.

Central Arizona Project (CAP) is a 336-mile long aqueduct system which distributes Arizona's Colorado River water allocation for the purpose of conserving groundwater. When you read articles that discuss the reduction in CAP water, this is the source to which they are referring. 

Town anticipates no curtailment of CAP water supply even in 20 year drought

There’s less and less water coming into the Colorado River Basin. Indeed, the Federal Bureau of Reclamation, the group that manages CAP has started to restrict the amount of water States are allowed to draw. There is now a “Tier 0” shortage. The town anticipates that further restrictions will happen in 2022. Still, the town anticipates that this will not impact our water supply. Indeed, there is a fallback of previous water stored by the State that can be used. 

According to the town, the actions thay have taken “...combined with a diverse water resource portfolio reduces the chances of a water resource shortage in the event of CAP water delivery curtailments.”. Reducing risk is good. But the town has not eliminated the risk.

Town assumes residents will continue to conserve water... but will the town do likewise?

The town’s water plans assume that residents will “...reduce demands through an increased focus on the efficient use of water resources ... to preserve water supplies for future uses.”  The town does not “walk this talk.” As we have reported, they are reopening the Pusch Ridge Golf Course. That course will use enough drinking water to supply 400 single family homes for year. Add to this the potential approval of many apartments along Oracle Road. Apartments bring greater density to the area and with it, greater consumption of water.

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Source: 2021 Oro Valley Water Utility Report

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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Heather's Corner: Doing Your Part to Conserve Oro Valley's Water Resources

The Oro Valley Water Utility Commission Annual Report is available now and inside you will find a tremendous amount of information and anything you could possibly want to know on Oro Valley's water quality, programs, sources, etc. Among some of the most interesting information are the sources of our water and the water Conservation Program.

"Oro Valley currently delivers water from three sources of supply. Groundwater is pumped from wells in the aquifer below the Town and delivered through the potable water distribution system. Central Arizona Project (CAP) water is delivered to the Oro Valley potable water system through Tucson Water’s Distribution System. Reclaimed water is used for turf irrigation and is delivered through a separate reclaimed water distribution system. Oro Valley also uses its CAP water indirectly through groundwater storage credits.

Groundwater levels continue to decline in the Oro Valley aquifer but to a significantly lesser extent than in previous years because of the decrease in groundwater pumping. Operation of the reclaimed water system and the delivery of CAP water have slowed the groundwater decline, thus conserving, preserving and protecting our aquifer and our groundwater supply. Plans for future use of an additional 500 acre feet of CAP water are complete with deliveries expected to start in April of 2014."

"The Water Conservation Program continues to be a vital asset in assisting the Utility to achieve its overall water management goals. In 2013, 125 water audits were performed. Since the program’s inception in 2003, participating customers received 1,752 free water audits, which saved our customers both water and money.The Utility encourages water conservation by educating our customers. A Youth Water Conservation Education Program for elementary schools in Oro Valley has been developed and will be implemented in 2014."

It is not a shock to read that Arizona suffers a drought more years than it doesn't and that water is a precious commodity. As stated on AZwater.gov website with the unseasonably warm season and lower than average precipitation levels we've had up to this point, all areas of our state are in some form of drought. That's why it's important this year, as it is each year, to conserve, conserve, conserve!

Eartheasy.com has an article that lists 25 simple steps you can do to help conserve water at your home. It's an impressive list.

One of my favorite water saving suggestion is #4: Use your water meter to check for water leaks.

Water conservation is really not that daunting when everyone in the household is on board and parents take the time to teach children the importance of conservation. Soon are the days, when the cold sink faucet only runs hot, pools are evaporating noticeably on a daily basis, and patio misters get clogged before they even begin. And as nice as it is to seek relief from our hot sun in whatever water we can find, remember to do so wisely.
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Heather Nenadovich has lived in Oro Valley a total of five years. She has a B.A. in Psychology from the University of Arizona. Her husband is Canadian so she is a hockey fan by default and so are her two very clever children. When not being a mommy, she enjoys hiking in Catalina State Park, hand building pottery, and gardening. Her favorite things about living in Oro Valley are the towns recognition of art and culture, their commitment to preserving nature and the Christmas parade. (Also anything from GMG Chinese Bistro.)

Water Commssion Report: No Increase In Water Rates. But, Will It Hold?

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The Oro Valley Water Commission is meeting October 10 to, among other things, discuss water rates. Click here for their agenda. Item 3 on this agenda is a discussion regarding water rates, as detailed in their draft : "Water Analysis Report".

The good news is that this report recommends no change in water rates for 2011-12:

Due to sound fiscal and water,resource management, it is projected that the Utility will meet revenue requirements with no proposed water rate increases for the base and commodity rates in FY 2011-12. (Page 6)

Assuming that the Commission approves this report, the next step will be approval by the Oro Valley Town Council.

The question we have is whether this Council will pass up this opportunity to raise water rates, even though no such increase is warranted for water service. After all, this is not the first time the Commission has recommended no increase. Yet, our costs of water have continually increased.

A few years ago there was a confluence of interests on the Council. One council member wanted to increase your cost of water so that the town could fund storm-water cleanup. Several other members wanted to increase the your cost of water to fund more Police Officers. Two members wanted to increase your cost of water as a way of, in their mind, promoting "conservation".

Though the individual council members did not all agree on the reason they wanted to increase your cost of water, they did all agree on one thing: To raise the cost of water to you. That's why 25% of your water bill has nothing to do with water!

You know as well as I know. Once any government finds a way to tax you they will do so again and again and again. The tax never goes away even though the original reason for it might.

The problem with the cost of water in Oro Valley is not the lack of water. It is not the inability to get the water. It is not the inability of our water utility to put the water to you home. In fact, our Water Utility seems to run efficiently, delivering high quality, potable water to you tap ever day!

The problem with your cost of water in Oro Valley is Oro Valley Politics. Give some politicians a way to tax you and they will tax you!

This Council has been no different than ones past. This Council, by a 5-2 vote, increased your utility tax because they wanted your money.

Will this Council pass up this latest opportunity to get more of your money via an unneeded water rate increase?
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Water Rate Hikes Coming...Reclaimed Water Use Becomes A Strategic Decision

Potable water rates and wastewater use in forefront

Two items on last week's Town of Oro Valley Town Council agenda related to water. One is a water rate increase. The second is a discussion the potential for extending the towns reclaimed water system to those parks currently use potable water for irrigation.

Potable water rates will increase in August

The council unanimously (6-0, Jones-Ivey absent) approved it's annual increase in water rates. An annual increase is part of Water Director Peter Abraham's plan to gradually increase rates to compensate for increased cost. This year, the cost of CAP water went up, causing the need for this year's increase cost. The rates schedules were accepted as presented. 

Mayor Winfield would like to see the town increase the cost of water to those homes that use more than 3,000 gallons of water a month.  Council Member Solomon disagrees. He noted the unfairness of this increase in subsidization by larger homes for smaller homes. The current rate schedule already does this.  The average use of water for Oro Valley homes is 7,000 gallons per month.  Winfield's suggested change further increase water cost to most resident.

Reclaimed water system to stay as is for now...further discussion needed

Council members Nicolson and Bohen had asked that a discussion of the wastewater system be on the agenda. They wanted to know: Can the system be extended to those town parks that use potable water? If so, what would it cost to do so?  What would be the impact on the town's potable water supply?

Abraham sees multiple uses of Oro Valley's reclaimed water allotment

Oro Valley Water Director Peter Abraham framed his response in a broader context. "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."  One possibility is that reclaimed water can be treated and injected into our current potable water system.

Town Manager Jacobs: Future use of reclaimed water is a major policy issue

Oro Valley Town Manager Jacobs agrees that "this is a major policy issue. It is something we need to figure out in terms of what is right for this community. This should be incorporated into the strategic leadership plan."

Yes. The reclaimed water can be extended to the southern area of town

The cost of doing so depends on the route and the engineering challenges along the way. Abraham guesses that it could be $8 million dollars. But then again it could be $10 million or $6 million. Since Abraham doesn't know the route, he can not give a firm estimate of the cost of extending the route.  

Yes. The town does have enough capacity of reclaimed water to be able to supply those parks that are currently using potable water

These parks used 6.4 million gallons of drinking water in April [panel left]. That is the equivalent use for 917 single family residential home.

Jacobs will present a motion to the town council at next week’s meeting to “…analyze and develop policy options for the cost-effective and efficient long-term use of the Town’s unused reclaimed water entitlement.” (Source) This is to be completed by June 30 2023.

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Oro Valley Built Water Reserves in Fiscal 2023

Water's Annual Report gives glimpse into water operations 

Oro Valley Water Director Peter Abraham emphasized the efficient management of water resources as a cornerstone of community sustainability earlier this month in his remarks to the town council. 

Abraham was presenting the utility’s fiscal 2024 Annual Report. An annual report is required by Article 15-4-5 of the town code. "It's prepared by the Water Utility staff, the commission reviews and comments on the report. Town staff renders a report to town council on behalf of the commission and the report becomes a public document once accepted by the council.”

A dedicated team of professionals keeps everything working

The operational backbone of the water utility lies in its dedicated teams, particularly the water operations group, which oversees metering, distribution, production, water quality, and control systems. Their steadfast commitment ensures the reliability and efficiency of the town's water infrastructure. (See panel right)

Serving 21,300 accounts 

In terms of customer service, the water utility served more than 21,300 accounts with prompt billings, cash receipts processing, and addressing customer inquiries. Furthermore, through an intergovernmental agreement with Pima County, the utility does monthly billing for Pima County Wastewater, increasing its revenue streams.

Has 35,000 acre feet of drinking water reserves

Water resource management remained a focal point, with prudent use of Oro Valley’s three main sources of potable water: Groundwater, CAP water, and reclaimed water. (See panel left) The town has accumulated 35,000 acre feet of long-term storage credits. That's almost six years of water production!

“We continue to buy our full CAP allocation, and we continue to store unused CAP water for future use if we need it….”  Last year, the utility:

• Used CAP water to replace the 4,925 acre-ft. of groundwater pumped 
• Stored approximately 2,807 Acre-ft. of CAP water for future use (Drinking water Reserves)
• Stored approximately 10 Acre-ft. of reclaimed water for future use (reclaimed water reserve

“Between the entitlement or the allocation of CAP water we have of 10,305 acre feet a year, you subtract out replacing the groundwater we pumped and the deliveries we directly delivered. The rest of that we stored in nearby underground aquifer storage facilities, and that was about 2,800 acre feet of that unused CAP water was stored and became long-term storage credits. That goes to our long-term storage credit account, so that account now is just under 35,000 acre feet, so that's great.”

Conservation focus….60% of leaks are from irrigation

Conservation efforts were also paramount, with extensive community outreach and education programs aimed at promoting water efficiency and responsible usage. “Over 8,000 automated alerts were sent to registered users in 2023, and 60% of the leaks were, as confirmed by customers, were related to irrigation leaks, so this is one of the areas we focus with our customers is operating and maintaining their irrigation system and keeping it in good operating form.”

Financial sustainability 

Financially, the water utility maintained stability and resilience despite its operational demands. With two utility funds, the Enterprise Operating Fund and the Water Resources System Development Impact Fee Fund, the utility effectively managed its debt obligations of $18.3 million. Annual debt service is $3.8 million. The water utility's bond ratings from Fitch Ratings and Standard & Poor's is AA and AA+ respectively, meaning that debt is considered of low default risk and that the utility has a strong capacity to service its debt.  
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