Metropolitan Domestic Water Improvement District - Tucson, Arizona USA

Metro Water District
1992-2002
A Decade of Keeping the Water Flowing
A Message to Our Customers and Friends

Metro Water District is unique as a water provider in that it is not a department of a municipality nor is it a privately owned utility. This allows Metro to focus its resources and energies solely upon water. Our aim has always been to ensure that reliable, safe drinking water flows when our customers turn on the tap.

During our first decade, Metro Water District has established itself as a reliable, committed water provider for its customers in northwest metropolitan Tucson. With its survival chances questioned at its founding, Metro's Board of Directors and staff set their eyes on Metro's potential and never looked back. Whether improving an aged, undersized water system or working to enhance regional water issues and policies, Metro Water has not shied away from a challenge but has aggressively sought solutions.

During the past 10 years, Metro Water District has appreciated the support of its customers. We thank our customers for their understanding during inconveniences that may have occurred as we have made improvements to strengthen our water system.

Metro Water District has now more than 16,500 connections serving the water needs of some 45,000 people and hundreds of businesses. The District has an elected board of directors and a single focus - to provide affordable, safe drinking water when the tap is turned on.

Metro Water District's successful first decade can be attributed to the backing of supportive customers, committed and progressive Board members, and dedicated, hard working employees. We look forward to continue to do all we can to continue to have the support of our customers.

Sincerely,

Mark R. Stratton, P.E., General Manager

1992

Ten years ago, the residents in northwest metropolitan Tucson banded together and actively seized the direction they wanted for their community. The issue was water. Would the people have control over their own water system or relinquish it to the neighboring city's mayor and council? Metropolitan Water Company, the local water provider, was slated to sell its assets and the City of Tucson wanted to take over the 12,000 connections. The citizens had not had much of a voice about their water when it was privately owned and felt they would have little say if Tucson bought the water company, since the area was not within the City limits. Water customers decided to band together for an effort that gave them a voice.

The citizens found allies on the Pima County Board of Supervisors and began the process to establish a domestic water improvement district, a statutory special district generally used in forming small rural water providers with less than 1,000 connections. To use the statutes to create a large, urban domestic water improvement district was an audacious endeavor. Pushing aside the tendency toward apathy, a group of activists began visiting door-to-door, standing in front of the library and local stores to get 50% of residents to sign petitions to form the Metropolitan Domestic Water Improvement District in June 1992.

By July 7th, momentum was building for a publicly owned water district, and the Pima County Board of Supervisors created the Metropolitan Domestic Water Improvement District, contingent upon the ratification of the required petitions, and appointed an interim Board of Directors from the District residents. Five days later, the first official Board meeting was held. Despite the uncertainty and skepticism of southern Arizona's water community, the Board resolved to move forward. They never looked back.

Petition gatherers continued to fan out in northwest Tucson and interest grew. By the end of July, more than 6,000 signatures were gathered for the Pima County Board of Supervisors to certify and validate the legitimacy of the new public water provider.

As a political entity, the next challenge was for Metro to purchase the actual assets of the water company from Tucson Water, which had already acquired the private company. The Board prepared to issue bonds for that purchase, which required placing a lien on each property. Supported by the community, the water provider was able to put together the necessary finances to complete the acquisition.

On October 2, 1992, the Metropolitan Domestic Water Improvement District became a full-fledged water provider when the purchase of the water company was finalized.

1993

1993 was a year of assessment and planning. The actual water system, from wells to pipes, had received little attention from its private owner over the years. The new Board recognized quickly that its first and most urgent task was to have water at the tap when customers turned on their faucets. To achieve this, an effective staff was needed. The Board recognized that its most important resource was actually its employees. Without a competent, effective staff, it would be hard to ensure that the water kept flowing. In addition to retaining existing staff of the private water company, the Board also wanted to improve efficiency by ensuring that Metro relied more on employees than consultants. This also meant upgrading the vehicles and equipment used by staff.

To accomplish this and all the other tasks needed to keep Metro Water functioning, the Board sought a General Manager to be responsible for the day-to-day operations of the water system. The year began with the Board hiring Jack Conovaloff as the General Manager but the working relationship never quite jelled. By mid-year, the District hired Chuck Huckelberry as the General Manager in what was considered a small coup because of Mr. Huckelberry's established reputation as an administrator at Pima County. But by the end of the year, Chuck Huckelberry was being courted by Pima County to return as its Chief Administrator. Mark Stratton, who had been hired on at Metro Water as its District Engineer, became the interim General Manager until being named the General Manager in April 1994. He has held the position since.

The Board of Directors and staff knew that the whole infrastructure needed to be evaluated and its weaknesses identified. Metro Water District initiated a water system management plan that included hiring the firm Camp Dresser & McKee to determine what improvements would be necessary over the next twenty years. Metro Water District concurrently launched an evaluation of all its storage tanks to assess their condition. That summer, Metro formally established its backflow prevention program to ensure compliance with state regulations. By the end of year, the preliminary design for a Northeast Reservoir was also underway.

From the beginning, Metro Water District knew it had to look at water resources beyond groundwater, which meant no hesitation to become a player in southern Arizona's water issues. Metro Water District became an advocate for the Northwest Replenishment Program, a program that identified three projects to recharge Central Arizona Project water in northwest Pima County. The most ambitious project concept was to bring Central Arizona Project water 10 miles from its canal to a replenishment site along the Cañada del Oro Wash. Questioned by some as a grandiose scheme, the Northwest Replenishment Program soon also drew support from the Town of Oro Valley, Town of Marana, Pima County Flood Control District, U.S. Bureau of Reclamation, Arizona Department of Water Resources, and the Central Arizona Water Conservation District. Studies began to determine the feasibility of the three projects.

1994

1994 was a year of further assessment and planning, as well as much action. In early 1994, the District was anxious to have the Water System Management Plan completed. A public meeting was scheduled to present the findings. The Plan identified a water system with relatively small service areas that were served by one or more wells, operating independently, and with inefficient storage capacity. The Plan noted that the overall infrastructure needs included major transmission mains to interconnect the service areas and an increase in storage capacity to 15 million gallons.

While identifying the work ahead of it, Metro Water worked to maintain the system. In February 1994, needed repairs were made to the Marlene storage tank. At the same time, the District decided to pursue variable frequency drives (VFDs) for its well sites to lower noise, reduce wear and tear on the motors, and save electricity. Metro's ability to pursue the VFDs, which are now standard throughout the District, is representative of an advantage benefit that the public water provider had over a private water company. The focus had shifted to what was best for the system over the long-term, not whether the cost could be recouped immediately.

Along with assessing its water system, Metro Water wanted to know how much groundwater it had. In August 1994, the District commenced a hydrologic study of Metro's 100 year supply (with Errol Montgomery and Associates) also as part of pursuing an Assured Water Supply designation from the Arizona Department of Water Resources.

Metro's honeymoon period with its customers was tested at a rate hearing on May 16, 1994. Held at Cross Middle School, more than 80 customers attended to find out about the proposed rates and what their water provider was doing. An increase in the rates was pursued to fund necessary improvements and to allow the District to remain independent as it decided how to proceed with renewable supplies.

Metro's Board wanted to have open communication with its customers. Since public involvement had been critical to Metro's early success, keeping customers well informed needed to continue. In January 1994, the Board initiated sending water bills in envelopes rather than by postcard so informational inserts could be included "Metro Water Splash" newsletter took a dive into customer bills and has evolved through the years to be a regular means for dialogue with customers.

The summer of 1994 produced 100 days of 100-degree temperatures. The hot weather confirmed the deficiencies of Metro's system to meet peak demand. A large subdivision, Linda Vista Estates in the northwest part of the service area, experienced low pressure or no water and an emergency tie into Tucson Water's nearby system was required. The lessons learned that summer confirmed the findings of the Water System Management Plan that Metro Water District needed a Capital Improvement Program. Additionally, District staff began to expedite the interconnecting of all Metro's individual systems. Originally, the service area had been comprised of many smaller individual systems; if one had trouble, there was no back up. Interconnecting all systems became imperative. Board member Herb Johnson also recognized the lack of storage facilities in Metro's northwest service area and convinced other Board members that a Northwest reservoir needed to be built soon. Plans for the Northeast reservoir were then converted to the Northwest reservoir.

At the end of 1994, Metro Water recognized the responsibility of new development to contribute to infrastructure improvements. With new commercial development planned for the La Cholla Blvd. area, fire flow would be strained, but the problem was averted by instituting an impact fee for new meters. This allowed for larger pipes to be installed now with new development paying the fee to reimburse for the new lines.

1995

1995 began with rumblings about Metro's standing in the region's water world. Tucson Water faced challenges with the introduction of Central Arizona Project (CAP) water that eventually led to the Tucson Mayor and Council having CAP water turned off. A referendum was approved by Tucson voters requiring the City to develop an alternative to direct delivery of CAP water. As a requirement for Tucson to sell the water company's assets, Metro had entered into an Asset Purchase Agreement with the City of Tucson that required Metro Water to take CAP water to guarantee a long-term water supply. With CAP water under the spotlight, Metro Water's Board was concerned about being required to use CAP water on a take-or-pay status when quality and aesthetic questions existed about the CAP water Tucson would deliver. Metro Water District continued negotiations with the City of Tucson that had begun in 1994 to try to amend the Asset Purchase Agreement. With little progress in negotiations by August 1995, Metro Water District filed suit against Tucson, requesting a release from obligations under the Asset Purchase Agreement. The Board's decision was based on quality and quantity questions about CAP water and the City's not delivering CAP water to its customers. The City filed a counter-claim against the District alleging that the District had never intended to take CAP water.

With Metro appearing to stand before a Goliath in the water industry, it was important to have feedback from its customers. In January 1995, the Board reviewed results from a survey sent to gain input from customers regarding water quality, CAP water, and recharge. Customers responded with a 58% return that strongly supported the long-range water resource plans of the District. Keeping a finger on its customer pulse provided important input as trying to decide the best course with Tucson.

Metro Water also pushed ahead with needed improvements. In April, the Board approved allocating $500,000 to create an in-house construction crew to deal specifically with mainline replacement projects, which involved upgrading aged, undersized pipes to increase reliability and to allow for hydrants to be installed. In August, design plans for the Northwest (Linda Vista) Reservoir were completed, while construction began for the million-gallon Magee/LaCholla storage facility.
ith its hydrologic study showing that adequate groundwater resources existed, Metro Water District applied in June for a 100 year assured water supply (AWS) designation from the Arizona Department of Water Resources. At the end of the year, Metro obtained membership in the Central Arizona Groundwater Replenishment District (CAGRD) to meet the requirement for a renewable supply under the AWS rules.

Conservation efforts also increased. Customers were encouraged to conserve water through a toilet rebate program that was established in January. The District offers a $50 rebate when an ultra-low-flush (1.6 gallons) toilet replaces a high gallon guzzling model, with a $40 rebate for subsequent toilets. More than 1,650 toilets have been replaced to date, saving an estimated 10 million gallons annually.

Setting appropriate water rates is always a challenge. A Rate Advisory Committee was set up in early 1995 to examine Metro's rate structure. The goals were to encourage water conservation and generate revenue needed to continue the maintenance and capital projects being pursued. Until 1995, Metro's rates followed those set by the private water company - a base rate and a commodity rate. The Rate Advisory Committee recommended adding a summer conservation rate (between 15,000 gallons and 25,000 gallons in the summer) and a high users rate (+25,000 gallons all year long). Information about the proposed rates was mailed to customers prior to the September public hearing, which appeared to give the necessary explanation about the new rate structure since only 22 customers attended the hearing. Metro Water continues to use the same rate structure. Although subsequent rate adjustments have occurred for debt-retirement on the District's Capital Improvement Program, there has not been another rate increase specifically for operations and maintenance since 1995.

1996
1996 brought evidence of Metro's ability to innovate and develop cost-effective partnerships. From its inception, Metro Water explored different alternatives for assuring a long-term water supply. One pioneering effort came to fruition August 1st with the official opening of the Avra Valley Recharge Project. This joint project with the Central Arizona Project and BKW Farms was the first recharge project in Pima County. The project exceeded expectations in providing a better understanding about recharge in spreading basins. The recharging of CAP water would generate stored water credits to satisfy future State replenishment requirements. The project was initially permitted at 8,300 acre feet per year (2.7 billion gallons) of CAP water, and with permit expansion to 11,000 acre feet per year (3.6 billion gallons) a little over a year later.

Metro Water also pursued obtaining replenishment credits by participating in groundwater savings projects with Kai Farms and BKW Farms. CAP water, instead of groundwater, was used to irrigate crops, and Metro accrued long-term water supply credits.

In the summer, Metro increased its storage capacity with the completion of a million-gallon reservoir at Magee/La Cholla. In August, the District sought to then double total storage capacity with the Board approving the building of a five-million-gallon reservoir for the northwest part of the District. Storage capacity had been a main priority for Metro since 1994, when it was identified that 15 million gallons in storage was needed for existing customers, but only 4.5 million gallons of storage capacity existed.

In addition to increasing storage capacity, Metro Water also knew that its overall infrastructure must be improved through various capital projects if customers were to have the supply and reliability needed. Metro Water staff developed the outline for a five-year Capital Improvement Program, which the Board "green lighted" in August. The objective was to upgrade the aged and undersized water system by installing large transmission mains to better move large volumes of water throughout the system as well as small main line replacement projects. In August, the Board approved the design of two critical transmission mains - the Thornydale Well transmission main and the La Cholla Blvd. transmission main.

This ambitious CIP was going to require a sophisticated financing structure if it was to be accomplished. Metro Water had obtained a change in State law that allowed it to issue revenue bonds instead of financing its capital projects through liens or property taxes. The District conducted a survey of the residents to learn how much customers understood the need for the CIP as well as their support for different financial approaches. In December, the Board decided to call an election for 1997 to gain voter approval to issue revenue bonds to fund the CIP.

Another vehicle for financing capital projects was gained in March when the District formed the Municipal Property Corporation (MPC). The MPC would be used to help secure financing with tax-exempt bonds for capital projects and then enter a lease-back arrangement for the facilities to the District in order to pay the debt service on the bonds. The MPC would later be used to refinance the construction of the Northwest (Linda Vista) Reservoir, and fund a new office complex.

Metro's Legal Counsel kept busy through the year in establishing the District's case against the City of Tucson. However, not all relations with the City of Tucson were contentious. Metro Water and Tucson Water reached an agreement in January that resolved some long-standing questions regarding the boundaries between the two service areas.

1997
1997 was a year of focus on finances - funding for the Capital Improvement Program and settling litigation with Tucson. In March, Metro Water District residents voted an overwhelming 79 percent to approve a $23 million bond program in a special election. With a higher electoral approval than area school bond programs obtain, Metro's Board and staff were extremely pleased with the support and confidence shown. The approved bond program would finance the District's Capital Improvement Program. The CIP included building 75,000 feet of transmission mains, drilling three new wells, well modification, designing a storage facility, and accelerating the main replacement program to upgrade neighborhood water lines.

With the success of the election, Metro Water wanted its residents to know that the bonds they approved would be spent appropriately. The Board established a Citizens' Bond Oversight Committee to review the capital projects and monitor the District's use of the bond fund. Seven District customers serve on the Bond Oversight Committee. While the membership has changed with time, the Committee continues to be active. Today, the members of the Bond Oversight Committee include Sheila Bowen, Robert H. Carstens, Barbara Gelband, Warren M. Hook, Arthur Ruff, James Tripp, Izaro Urreiztieta, and Dan B. Williams.

In May, Metro Water began to establish its telemetry program, a key part of the CIP. The objective is to be able to monitor all of the well sites and storage facilities from a central location. Staff would then be aware immediately of problems in the water system so that a correction could be quickly implemented. As a laborious, technical process, the telemetry system would be implemented first at the most critical sites and would be extended to other appropriate sites over several years.

Metro Water District became a founding member of the Water Conservation Alliance of Southern Arizona (Water CASA), an association with the objective to work cooperatively to enhance each members' water conservation program while improving the region's efforts to use water wisely. The message was that in Southern Arizona, water conservation is a way of life. Water CASA would become an innovative entity willing to challenge conventional thoughts about conservation as well as existing policy. For example, through a study conducted by Water CASA in 2000, the State's laws on residential graywater usage were relaxed making it easier for homeowners to use graywater rather than groundwater for outdoor watering. Along with Metro Water, Water CASA's current membership includes Community Water Company of Green Valley, Flowing Wells Irrigation District, the Town of Oro Valley, the Town of Marana, Pima County Wastewater Management, and U.S. Bureau of Reclamation.

Much attention during the year was spent on the litigation between the District and the City of Tucson. Volumes of documents were gathered as both sides mounted their respective cases. As the attorneys began taking depositions, continued dialogue between Metro and Tucson bore fruit as both sides realized a settlement would be preferable to waiting on the uncertainty of a judge and jury. In December, Metro Water and City of Tucson reached a settlement agreement to the two and a half year long lawsuit. Under the settlement, Metro Water would pay $12.3 million over a 21-year period and no longer be required to take or pay for treated CAP water from the City. In addition, the District would receive its own 9,500 acre foot allocation of CAP water that the City originally received for use in Metro's service area. The CAP allocation is important for ensuring the District's long range water needs, and its value exceeds the entire settlement amount paid by Metro. The settlement cost ended up being $17 million less than what the City originally sought and well below the $72.5 million that Metro Water would have had to pay for treated CAP water over a 30-year period under the original agreement. More important, the Board, staff, and attorneys worked hard to ensure that the settlement was fair and did not require any additional rate increase.

1998

1998 gave Metro Water an opportunity catch its breath after two and half years of litigation and to sharpen its focus on improving its infrastructure. In May 1998, Metro Water District was proud to be honored as the year's best small distribution system in Arizona by the Arizona Water & Pollution Control Association (AWPCA). AWPCA honored the District for proactively improving its aged, undersized distribution system by connecting its numerous small service areas into a more reliable, well-maintained system within five years. AWPCA, a 70-year old organization, honors water providers that make significant efforts to provide safe-drinking water and protect public health.

In June, Metro Water added an important improvement to its water system and doubled its storage capacity with the completion of the five-million-gallon northwest area (Linda Vista) reservoir and booster facility. Board members and staff agreed that naming the new reservoir after founding District member Herb Johnson to recognize his continual efforts to ensure the improvement of the District's infrastructure. Herb Johnson actively promoted the need for the District to improve the aged and undersized distribution system inherited from Metropolitan Water Company in 1992, including proposing the concept for the northwest reservoir.

1998 began with the Avra Valley Recharge Project permitted as the first operational, full-scale recharge project in Pima County after completing its successful two-year pilot program. The project would now be permitted to recharge up to 11,000 acre feet or approximately 3.6 billion gallons of Central Arizona Project water annually. Metro Water District's experience with renewable supplies was greatly enhanced with the Avra Valley Recharge Project along with groundwater savings projects. In May, staff reviewed with the Board the findings from a feasibility study to recharge CAP water in the Cañada del Oro Wash, which is the primary source to the District's aquifer. The findings confirmed that a major recharge project in the Cañada del Oro is practical and could benefit the District's long-term water resource needs. Additional work is needed to fully evaluate how to bring in the infrastructure from the CAP canal to Metro Water.

In the fall, Metro Water took another proactive step to protect its drinking water sources by initiating a wellhead protection program. This program would later bring state and national recognition to the District. The program developed an effective method to retrofit existing wells with a sanitary seal to reduce the possibility of contaminants entering the well from the surface. Also, the program assisted the State to ensure unused wells in the District comply with abandonment and well capping laws.

In the regional arena, Metro Water and the Town of Marana cooperated to meet each others' needs by trading storage tanks. Metro planned to remove 30,000 gallon and 50,000 gallon storage tanks when Marana stepped in and offered to do the work if it could keep them. The tanks were dismantled and have been reassembled for use in Marana's service area. Metro saved the cost of dismantling and disposing of the tank.

The year ended with Metro Water considering the possibility of expanding its customer base by negotiating the purchase of the Hub Water Company, a private water company in the Tucson foothills area of Sabino Canyon Road and Cloud Road.

1999

1999 was the year that Metro Water matured as an established water provider. Since the bond election, the District concentrated heavily on its Capital Improvement Program. Financing the CIP was finally initiated in early 1999 with the sale of $13 million in revenue bonds. In addition to the revenue bond issuance, the District decided to take advantage of the favorable interest rate and to remove the liens placed on its residents' properties when the District was formed in 1992. This meant a $14.8 million refinancing of the original bonds used to form Metro Water District. The Board wanted to a remove the liens to extend its appreciation to Metro's customers for showing trust from the beginning in their water provider.

The issuance of the revenue bonds had been delayed until the lawsuit with the City of Tucson was settled. While waiting for the financing, the District was still busy with design work for critical CIP transmission mains. Once the bonds were issued, construction began in March for the Trisha Lane 16-inch Transmission Main and the Camino del Fierro 24-inch Transmission Main.

After the owners of the Hub Water Company offered it to Metro Water, Metro Water District acquired Hub Water Company, a water provider in the Tucson northeast foothill area, in June in a $2.5 million transaction that increased Metro's 14,750 existing connections to nearly 16,250. The Board decided to proceed with the purchase when it was clear that expanding its service area would benefit existing customers through strengthening District finances, adding to Metro's voice in regional water issues, and providing economies of scale.

Metro's Board had agreed that its personnel would be more efficient if all employees were located in one office with adequate work space. For three years prior to 1999, the District had operated with its employees cramped into three different locations. In May, Metro Water moved to its new office and maintenance building at 6265 N. La Cañada Drive. The new office campus provided a meeting room for the Board meetings, adequate space for equipment and inventory, and centralized all of the employees.

In October, Metro Water implemented a program to replace meters over ten years older within four years. This was motivated by the knowledge that meters begin to under-read as they become older and accuracy decreases. Within a few years, the program has shown to be beneficial with the District's lost and unaccounted for water lowered from 9.6% in 2000 to 6.2% in 2001.

Similar to a report done in 1997, Metro Water sought to inform its customers about the quality of its drinking water by sending an annual water quality report, which is required under EPA's new safe drinking rules. Metro Water confidently and proudly stated in the report and all subsequent reports that Metro delivers water to its customers that meet the safe drinking standards. In the fall, water quality gained media attention with the issuance of proposed EPA rules for radon and arsenic. Before that, Metro had been monitoring both substances as well as participating with national organizations working on implementation of the proposed rules.

Recognizing the benefit of working together with other water providers on conservation through Water CASA, Metro Water provided leadership in an effort to form a regional association for water providers. The main purpose was to be able to discuss issues in common, have a unified voice on legislative and policy issues that affected southern Arizona, and coordinate on matters that related to the regulated agencies. In November, Metro Water became a founding member of the Southern Arizona Water Users Association. Along with Metro Water District, initial members included Avra Water Co-op, BKW Farms, Community Water Company of Green Valley, Cortaro-Marana Irrigation District, Farmers Investment Company, Flowing Wells Irrigation District, Kai Farms, Marana Water Department, Oro Valley Water Utility, Pima County Wastewater Management, and Tucson Water. Mark Stratton, the District's General Manager has served as its president since its formation.

Hovering over the year was concern about the unknown impacts of Y2K on Metro's operations. Metro Water took the opportunity to remind its customers that being prepared for any emergency is wise and having extra water on hand when you live in the desert is a prudent thing to do. As part of the CIP and in preparation of Y2K, natural gas generators were installed at four critical well sites in order to provide auxiliary power in case electricity turned off. Metro staff developed an emergency plan for any unforeseen problems. Fortunately, the old century ended uneventfully, and the new century began with no interruption in the flow of water and services.

2000

2000 was a year to meet present needs while always planning for the future. In the spring, Metro Water took notice when its annual groundwater measurements showed 15% of its wells had declined slightly more than 5 feet since the previous year. Lack of substantial snowfall in the Catalina Mountains in recent years and increased use of groundwater in the Catalina/SaddleBrooke and Oro Valley areas contributed to the groundwater level decline. The declines confirmed that Metro Water had been moving in the right direction to pursue a renewable water supply, including obtaining its 2.88 billion gallon allocation of CAP water. Metro would need to step up its plans to use those renewable water supplies. While no immediate problem exists with respect to whether enough water exists, Metro Water continues to explore solutions for the next couple of years as annual rainfall remained dramatically below normal. Partnering with other water providers in the northwest Tucson metropolitan area and cooperative studies with the US Bureau of Reclamation were being pursued to identify the most cost-effective alternatives.

Metro Water did not shy away from passing this information along to its customers and the media along with all its major activities. Ironically, the media chose to focus on Metro's summer program to have its hydrants painted by high school students. Hydrants were painted with Metro's teal color so contractors could clearly recognize a District hydrant from another water provider's. This removed any excuse when a contractor took water from a construction project without the District's permission.

The painting of hydrants stemmed from the Board's decision in February to increase the fee for illegal or unauthorized use of water to up to $1,500. Customers who spy water thieves can report them to the District and receive a $100 credit. In February, the Board also tripled its bulk water rate for construction water in an effort to encourage conservation.

Metro received another accolade from the Arizona Water & Pollution Control Association citing Metro's General Manager, Mark Stratton, as supervisor of the year for a water distribution system in Arizona. In response, the General Manager noted his recognition was also an acknowledgement that Metro had assembled a great team of employees.

The District's Capital Improvement Program became more visible to District residents during the year as the Orange Grove Road Transmission Main and La Cholla Blvd. Transmission Main were installed along a well traveled streets and two mainline replacement projects were completed in the Catalina Village and Cresta Loma neighborhoods.

Metro Water became more familiar with its new water customers from the Hub Water Company during the year. Main line replacement projects were initiated to replace old, leaking pipes at Hub. At the end of the year, an opportunity arose for Metro Water to acquire another water company, but the Board decided the purchase was not beneficial and would require maintenance that would take needed resources away from its existing customers.

2001
2001 was a year to remind us that life is uncertain, but day-to-day operations must continue and can always be improved. During the summer, Metro Water passed the grade when the Arizona Department of Environmental Quality found 'zero deficiencies" in its triennial inspection of Metro's 34 wells and 20 storage tanks and boosters stations. Metro's staff and Board took pride in this grade, since it rarely happens for water providers, and it was evidence that Metro Water's day-to-day efforts to have an effective, safe drinking system were paying off.

Always looking for ways to hold down costs, Metro Water District entered an agreement with Tucson Electric Power Company that allows it to be charged an interruptible power rate at five major well and booster sites and save about $90,000 a year in energy costs. This was possible based on these sites having back-up power supplies with natural gas generators, which were installed as part of the CIP.

Matters of security were heightened in the fall as the District and the rest of the nation faced new concerns. Metro Water was able to update its emergency plans from its Y2K preparations in order to remain vigilant in keeping its water system safe. Security remains a high priority as the District explores different ways to improve in this area.

In an effort to expand the possibilities of renewable supplies, Metro Water entered into an agreement with the City of Tucson that transferred approximately 2,000 acre-feet of effluent generated from Metro's customers' flushes. Historically, the City of Tucson had control of that effluent. Now, the District could gain credit for its effluent recharged in the Santa Cruz River as well as have an effluent resource that could be used for turf irrigation, if the appropriate infrastructure is built.

Having already dealt with an aged, undersized water system, Metro's staff quickly recognized that parts of the new Metro-Hub service area needed an extensive mainline replacement project. Divided into four stages, the project is to be completed in 2002. In the summer of 2001, it became clear that Hub's existing 186,000-gallon storage tank could not meet the demand of all the residents. The Board directed staff to pursue additional storage with the construction of a new 250,000 gallon storage facility in 2002.

Arsenic in water and how EPA would regulate it became a well publicized media story during the year. Metro Water worked hard to understand the issue so it would comply with the new EPA ruling by 2006, along with exploring treatment options. Specifically, Metro Water became one of four Southwest entities to partner with the American Water Works Association Research Foundation (AWWARF) to analyze different technologies for removing arsenic in drinking water. The study, which would continue into 2002, looked at different treatment processes at one of the wells in the Hub service area. Of all its wells, Metro only had two wells located in its Hub service area that had levels of arsenic slightly above the new proposed EPA rule of 10 ppb.

Under the CIP, Metro Water used new technology (slim-bore drilling) to locate the best sites for new high quality production wells. It was an effort to try to take out some of the guesswork (and risk) in finding a new well. With the information gained, two new wells are scheduled to be drilled in 2002.

2002

2002 found Metro Water District no longer a fledgling water provider but one that has achieved, and continues to achieve, many of its objectives.

Metro's financial management was confirmed as solid in January when national bond rating agencies upgraded the District's credit rating. The increased bond rating reflected Metro's stability as an organization, having an adequate water supply and a respected long-term management team. Metro Water benefited from the improved rating when it sold the remaining $10 million water revenue bonds from the 1997 voter approved $23 million Capital Improvement Program. At the same time, the District approved subobligation bonds to pay off the 1997 settlement with the City of Tucson over CAP water and to refinance the 1998 junior bonds used to construct the Herb Johnson Reservoir and office site. The refinancing will bring about a savings of $1.17 million to the District.

Active public involvement in Metro Water District has diminished since the days of 1992 when customers rallied for its formation. For example, only four customers attended the public hearing in January to discuss the final of five 4% rate increases that had been set in motion to pay for the bonds issued to pay for the Capital Improvement Program. This rate adjustment was approved by the Board and became effective February 1st. This is not viewed as negative but rather a quiet approval that Metro Water District is being run effectively and communicating well with its customers. The Board and staff always encourage District customers to remain informed and to be active.

Still, customer involvement with the District is hoped for and does exist to a certain degree. In April, the Board appointed three new individuals (Mike Blakley, Manfred Eigenbrod, and Izaro Urreiztieta) to the District's Municipal Property Corporation. The Bond Oversight Committee continues to be an active group that meets regularly to discuss the progress of the Capital Improvement Program.

The Capital Improvement Program continues to push and dig ahead. In February, a 24-inch La Cholla Blvd. Transmission Main (Phase 2) was installed under the busy intersection of La Cholla Blvd. and Ina Road. The process involved digging a trench 17 feet deep and then hammering a 42" steel cylinder under Ina Road so as to install the transmission main under all the other utilities without disrupting traffic at the intersection.

Water conservation was promoted actively during the summer as water demand reached a record average usage of 12.3 million gallons a day. The high consumption challenged Metro's water system, especially during peak demand. Staff worked diligently to change valves manually to balance the system. This meant shifting the flow of water from one service area and reservoir to another as demand increased or decreased. The District's telemetry system alerted staff when storage tanks were low. Staff was able to keep everyone supplied with water despite the high demand until the monsoons started.

Metro introduced a graywater/water harvesting rebate program to compliment its existing toilet rebate program and to encourage wise water usage.

Metro Water also looked at expanding its influence and role in Southern Arizona's water world by agreeing to purchase the Green Valley Water Company. Metro Water would gain 3,800 new customers, and additional CAP allocation of 1,900 acre feet, and a large quantity of accrued long-term groundwater credits through the $7.5 million anticipated acquisition to be finalized by the end of the year. As with the Hub Water Company acquisition, this purchase is viewed as benefiting existing customers through strengthening Metro's overall finances, adding strength to the District's voice in regional water issues, and providing a greater economy of scale.

Next

Metro Water District will remain busy in its second decade as it continues to ensure that water flows when customers turn on the tap. Along with day-to-day needs, Metro Water will work to utilize its renewable supply to lessen the demand on its groundwater supplies and ensure a reliable source of water for its residents. The District will continue to focus on capital projects, such as a northeast reservoir and additional transmission mains, which were identified as needed in the Water System Management Plan. The District will remain proactive in the development of water quality issues that arise, particularly ensuring compliance with the new 2006 arsenic standard. Metro Water will also continue to be proactive in various areas including regional water issues, water conservation, and State water policies.

If the previous ten years state anything about what is next for the District, it would be that Metro Water will not shy away from challenges, will be active in looking for solutions, and above all, will continue to meet the water needs of its customers.

Metropolitan Domestic Water Improvement District
Board of Directors
Metro Water District has been fortunate to have competent, dedicated individuals serve on its governing body, which is comprised of five elected residents who serve a four-year term. The Board of Directors' single focus is to ensure that Metro Water's customers receive safe drinking water whenever the tap is turned on. It fulfills that role by setting policy and water rates, providing direction to the General Manager, and overseeing the budget and Capital Improvement Program. Since its formation in 1992, Metro Water District has had the following thirteen residents serve as Board members.

Term(s) served
Alex Jacomé 1992 - 1994
Herb Johnson 1992 - 1996 6/1997* - 7/1999
Kate O'Rielly 1992 - 1994
Pete Schlegel 1992 - 1996 1998 - 2002
Jim Tripp 1992 - 1994 2/1996* - 1998

Barbara Johnson 1994 - 2/1996
Marty Cramer 1994 - 1998
Jim Doyle 1994 - 1998 1998 - 2002

Letha Gardner 1996 - 6/1997
Sam E. Ray 1996 - 2000

Marlene Wright 1998 - 2002

Dennis Polley 7/1999* - 2000 2000 - 2004
Dan M. Offret 2000 - 2004
*appointed to fill a vacancy

Elections are held at the same time as the General Election. Terms are for four years beginning in the January following the November of the year elected, as shown above.

Board elects annually one of its members to serve as Chair, usually for one year.

2002 - Employees of Metro Water District

Year Hired and Current Position
1992 - Continuing Employees from Metro Water Company
Frank Fotta, Utility Supervisor - Customer Service Field Work
Ralph Garcia, Utility Supervisor - Hub Service Area
Bob Gomez, Water Systems Project Inspector
Marilyn Roberts, Customer Service Representative II
Steve Shepard, Assistant Utility Superintendent
Dave Tanner, Water Systems Project Inspector
Larry Tanner, Water Line Construction Inspector
Sheila Willis, Controller

1993
Mike Block, District Hydrologist
Brian Smith, Utility Supervisor - Construction
Mark Stratton, General Manager
Jackie Zender, Accounts Clerk

1994
Alex Cardenas, Utility Maintenance Worker
Chris Hill, Deputy Manager
Mark Michael, Drafting Technician
Warren Tenney, Assistant to the General Manager

1995
Cory Bott, Utility Maintenance Worker II
Mike Land, Chief Financial Officer/Administration Manager
Theresa Lutz, Hydrologist
Cindy Martinez, Administrative Assistant - Engineering
Richard Fahrmeyer, Utility Maintenance Worker II - Lead Person

1996
Larry Brown, Utility Supervisor - Production
Tom Caito, Senior Engineer
Charlie Maish, District Engineer
Kim McClure, Administrative Assistant - Utility
Kevin Westbrooks, Backflow Prevention/Safety Inspector
Steve Woolridge, Utility Maintenance Worker II

1997
Steve Dean, Utility Superintendent
James Lewis, Civil Engineering Assistant
Joyce Osborne, Administrative Services Supervisor
Alfonso Valencia, Meter Reader

1998
Tim Dinkel, Development Supervisor
Cindy Karhoff, Customer Service Representative

1999
Karl Kesper, Civil Engineer
Chris Pfeffer, Civil Engineering Assistant
Lonnie Rogers, Utility Maintenance Worker

2000
Debbie Buchholz, Customer Service Representative
Gary Burchard, Hydrologist II
Randy Collyer, Utility Maintenance Worker
Linda Corona, Receptionist
Lucy Evans, Customer Service Representative II
Frank Gallego, Electrician
Brad Rountree, Meter Reader
Amadeo Villanueva, Utility Maintenance Worker II

2001
Isaac Deneen, Utility Maintenance Worker
Greg Hopkins, Utility Maintenance Worker II
Stephen Kelleher, Meter Reader
Rick LaPoint, Telemetry & IS Analyst
Alice Stults, Executive Secretary to General Manager

2002
David Cruce, Utility Maintenance Worker

Capital Improvement Program

Following an extensive evaluation of its water distribution system and after receiving an overwhelming 79% approval from voters, Metro Water District launched a Capital Improvement Program (CIP). The District is aggressively repairing and replacing critical water mains throughout its distribution system as well as increasing its storage capacity. The District has completed a five million gallon reservoir and constructed a one million gallon reservoir, drilling two new wells, modifying existing wells, installing backup power to several key sites aand completed major new transmission mains. These CIP construction efforts continue very close to the planned schedule despite the agressive road consturction projects in our service area and new biological and environmental issues that were initiated after the CIP was started.

Additionally, a state of the art "telemetry" system is more than half completed to keep a "finger on the pulse" of the entire system. The telemetry system can set off alarms the instant any equipment fails. This allows any interruption due to equipment failure to be quickly circumvented and loss of pressure avoided. Key personnel involved with system management, maintenance and engineering are linked by 24-hour beepers that will work, even under emergency conditions.

Metro Water serves as a vital resource to three area fire departments: Northwest Fire District, Rural-Metro Fire District, and the Heritage Hills Fire District.

The following is a list of the major projects of the District's Capital Improvement Program:

Transmission Mains
The installation of large water lines in order to move large volumes of water through system to then be distributed through smaller mains. Enhances the overall reliability of the system, increases fire flow protection, and allows for gravity flow.

Herb Johnson Reservoir Transmission Main, Phase II (the Bluffs)
$100,700 3,000 feet of 24" main Completed 11/98

"C" Zone Booster 24" Transmission Main and Herb Johnson Reservoir 12 inch fill line
$227,050 1,000 feet of 12" main & 1,000 feet of 24" main Completed 11/98
Camino Del Fiero Transmission Main
$494,347 4,600 feet of 24" main Completed 8/00

La Cholla Transmission, Phase I
$1,811,737 6,000 feet of 24" main & 2,000 feet of 30" main Completed 11/00

La Cholla Transmission, Phase II
$966,847* 5,700 feet of 24" main Completed 5/02

Thornydale Well Transmission Main
$2,307,699 5,000 feet of 12" main; 4,000 feet of 16" main; 2,500 feet of 20" main; 4,000 feet of 24" main Completed 5/02

La Cholla Transmission, Phase III
$1,300,000* 9,000 feet of 20" & 24" main Projected completion 7/03

Well Modification & New Well
Modification of wells to allow for water to be introduced directly into system and drilling of new production wells.

Tucson National - (3 wells)
$1,186,777 Completed 7/01

Thornydale/Ina, CDO, Marlene wells
$1,500,000* Projected completion 7/03

Drilling of Two New Production Wells
$850,000 Projected completion 4/03

Mainline Replacement
The replacement of aged, undersized water lines to increase water reliability, pressure, and allow for installation of hydrants.

Riverside Terrace
$167,868 2,000 feet of 4" main; 6,800 feet of 6" main; and 6,700 feet of 8" main

Casas Catalina
$107,872 1,400 feet of 4" main & 4,000 feet of 6" main Completed5/98
Catalina Village
$744,898 10,000 feet of 6" main; 2,800 feet of 8" main; and 1,800 feet of 12" main
Completed 2/01
Cresta Loma
$715,758 1,800 feet of 4" main & 6,000 feet of 8" main Completed11/00
Orange Grove Park
$1,260,283 2,200 feet of 4" main; 6,600 feet of 6" main; and 8,400 feet of 8" main
Completed 10/01

Northern Hills (Phase I)
$971,242* 1,200 feet of 6" main & 12,000 feet of 8" main Completed11/02

Hub Service Area

Hub Telemetry
$50,000* 12/03
Hub Auxiliary Power
$400,000* 12/03
Hub Storage Facility
$450,000* 8/02

Auxiliary Power at 4 well sites
Providing a natural gas back up to electricity for main sites
$934,278 Completed 11/99

Herb Johnson Reservoir (not bond funded)
$2,856,597 Completed 11/98

Telemetry
Installing computer system to allow for well and storage sites to be monitored from a central location.
$450,000 Projected completion 12/03