HomeMy WebLinkAboutCouncil Presentation 10/13/2020-Water Wheeling PolicyWater Wheeling Policy Discussion & DirectionOctober 13, 2020
Wheeling IGA = allows MW to serve areas that can be more easily reached with TW pipes•Yellow borders/cross‐hatch = contracted TW areas•Dark brown = MW service area•Dark blue = served by TW•Light blue = future TW service areaCurrent Water Service in Marana
•Approved August 18 by Resolution No. 2020‐087•The Town's CAP water is wheeled through TW's potable water system to points of interconnection within the Town limits•A tool to allow MW to provide potable water service to properties–located within Town limits–too far away from existing MW facilities to receive cost‐effective service from MW–close enough to be served by water lines owned and operated by TW–but do not meet TW’s water service policyWheeling IGA
•The cost of water delivered to customers through the Wheeling IGA is Marana Water's normal commodity rate PLUS about 50%•Developers will want to use it for all development projects located in areas easily served by a connection to Tucson Water–Minimal water line extension costs–The financial burden of the higher wheeled water cost is borne by home buyers and businesses, not the developer•Town staff suggests implementation of two wheeling policies:–“Temporary Wheeling” Policy–“Permanent Wheeling” PolicyWheeling IGA
“Temporary Wheeling” Policy: For development projects located where MW plans to extend its water infrastructure•Allow wheeling only when the developer's cost to extend MW infrastructure would make the development project not financially feasible•Even then:–Use wheeling temporarily ‐‐ until a MW main reaches the development–Require the developer, up front as a condition of service, to advance the development's fair share cost to extend the Town's water lines–Until a MW main reaches the development, customers in the development will pay a higher wheeled water rateWheeling Policy
“Permanent Wheeling” Policy: For development projects located where MW DOES NOT plan to extend its water infrastructure:•Require the developer to pay MW, up front as a condition of service, a financial contribution sufficient to cover the higher cost of wheeled water, giving MW the ability to charge customers in the development the same water rates as customers not served by wheelingWheeling Policy
Twin Peaks Crossings•Closest Marana Water main is at the Twin Peaks & Blue Bonnet reservoir—about 1.25 miles south•Some additional development will occur in the area•Use “Temporary Wheeling”–Fair‐share contribution toward future water line costWheeling Policy Example 1
Wheeling Policy Example 2Hazra Property•No plans ever to extend MW mains that far•Use “Permanent Wheeling”–Require cash contribution to offset higher wheeled water cost
Questions/DiscussionWheeling Policy Discussion