O R O VA L L E Y W AT E R U T I L I TY N E W S L E T T E R
JANUARY 2024
A MESSAGE FROM OUR DIRECTOR CORRECTION: The January 2024 printed issue of the Oro Valley Water Utility Behind the Meter Newsletter contained an error in the potable water rate chart for residential customers. The Tier 3 and Tier 4 rates we re incorrectly listed at $8.80 per 1,000 gallons and $2.65 per 1,000 gallons, respectively. The correct Tier 3 rate is $6.05 per 1,000 gallons and the correct Tier 4 rate is $8.80 per 1,000 gallons. We apologize for the error and confusion.
Peter Abraham, P.E. Water Utility Director
Having a safe and reliable drinking water supply, despite being a necessity, is relatively inexpensive in terms of its importance. At around $0.007 per gallon from the tap, it is an astounding value especially when you consider the infrastructure required to produce, transport, and deliver this precious resource. Our drinking water comes from two sources of supply. Our first source of supply is directly under our feet, this is our groundwater. Even though this source of supply is only 300 feet below the surface of the land, the infrastructure required to pump and deliver this resource is substantial. Our second source of supply comes from the headwaters of the Rocky Mountains more than 1,300 miles away, this is our Colorado River water.
Despite this low price, water is a commodity, particularly in dry, drought-prone regions of the southwestern United States. To keep this resource as inexpensive as possible while discouraging its waste, the Utility has implemented a tiered commodity rate in addition to a fixed base rate. We refer to this as conservation pricing. Conservation pricing incentivizes lower water consumption by increasing the commodity rate as consumption increases. The chart below shows the current commodity pricing for each of the four tiers for a residential customer with a 5/8-inch meter (this represents 87% of Utility customers).
P OTA B L E W AT E R RESIDENTIAL CUSTOMERS
Meter Size
Base Rate
Tier 1 - $2.65 Rate: Per 1,000 Gallons
Tier 2 - $3.88 Rate: Per 1,000 Gallons
Tier 3 - $6.05 Rate: Per 1,000 Gallons
Tier 4 - $8.80 Rate: Per 1,000 Gallons
5/8 Inch
$21.14
0 - 7,000
7,001 - 16,000
16,001-32,000
OVER 32,000
Fortunately, Oro Valley residents have a strong conservation ethic as most of our residential customers fall within the Tier 1 commodity rate. Every year the Utility evaluates the commodity tiers through the rate setting process. Rate setting is a complex process that involves balancing many objectives in addition to promoting conservation. Every year beginning in October the Utility performs a water rates analysis to ensure sufficient revenues are generated to recover the cost of service. This analysis takes into consideration all costs associated with successfully operating Oro Valley’s municipal water system. Costs include outstanding debt, water resources, operations and maintenance, personnel, capital improvement projects and the cost of electric power. In closing, with continued planning, responsible rate setting, good stewardship of our assets and resources, support from Town leadership and the community, you can expect the continued long-term delivery of a safe and reliable water supply at the lowest cost possible. Looking forward,
Peter Abraham
Peter A. Abraham, P.E. | Water Utility Director 1 1 0 0 0 N L A C A Ñ A DA D R I V E | 5 2 0 - 2 2 9 - 5 0 0 0 | OV W AT E R @ O R OVA L L E YAZ . G OV | W W W. O R OVA L L E YAZ . G OV
B E H I N D T H E M E T E R | O R O VA L L E Y W AT E R U T I L I TY N E W S L E T T E R
JANUARY 2024
WHERE THE MONEY GOES The Oro Valley Water Utility is an Enterprise Fund of the Town. The Utility does not receive any revenue from the Town’s General Fund and all water revenues are used to operate the Utility. Below is a graphical representation of where revenues are spent.
21%
25%
PERSONNEL
O&M
6% 6%
ELECTRIC POWER
27%
15%
WATER RESOURCES
DEBT
CAPITAL REINVESTMENTS
I M P O RTA N T U P DAT E S TO T H E L E A D AND COPPER RULE
PROTECT THOSE PIPES FROM FREEZE
Lead and Copper Rule Did you know that the Oro Valley Water Utility (OVWU) is required to sample Lead and Copper in our water system every 3 years? Lead was a common service line material used in some parts of the country; it has not been documented in the OVWU service area. It may have been used in some older plumbing fixtures which can leave traces of lead in drinking water.
A little prevention can go a long way to reduce potential damage and water leaks from freezing temperatures. Freeze events may not happen often but every year we speak with customers that experience freeze damage to their home plumbing. Be sure to protect those exposed hose bibs and irrigation backflows with removable covers.
Revised Lead and Copper Rule 2021 In December 2021, the EPA published the Revised Lead and Copper Rule. A requirement of the updated rule is for all water suppliers to create a public facing map of all service line and pipe materials within the OVWU service area. Water Service Line Material Identification The OVWU currently has over 21,000 water service connections in our distribution system. The OVWU has verified and documented all service lines and is currently completing the public information map that will be available in 2024. This project consisted of visually identifying both the OVWU service line material and customer owned private service line material. You may have seen OVWU staff or a contractor, at or near the water meter box working on service line identification. The Utility is confident that there are no lead service lines in your service area.
Monitor for leaks any time of the year with WaterSmart, our free online program that allows you to view your daily water use and receive automated leak and high water use notifications. Sign up on WaterSmart today at:
orovalley.watersmart.com
1 1 0 0 0 N L A C A Ñ A DA D R I V E | 5 2 0 - 2 2 9 - 5 0 0 0 | OV W AT E R @ O R OVA L L E YAZ . G OV | W W W. O R OVA L L E YAZ . G OV