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HomeMy WebLinkAboutWater Commission - Minutes - 03/16/2023 WATER COMMISSION REGULAR MEETING March 16, 2023, 5:30-7:30 p.m. Hybrid in person at 222 LaPorte Ave and online via Zoom 03/16/202 3 – MINUTES Page 1 1. CALL TO ORDER 5:31 p.m. 2. ROLL CALL • Commissioners Present: Jordan Radin (Chairperson), Paul Herman (Vice Chairperson), James Bishop, Ken Bruxvoort, Tyler Eldridge, John Primsky • Commissioners Absent - Excused: Rick Kahn, Greg Steed, Jason Tarry • Staff Members Present: Jeremy Woolf, Jason Graham, Katherine Martinez, Taylor Scott, Lance Smith, Matt Fater, Gregg Stonecipher, Kendall Minor, Andrea Smith • Members of the Public: Sara Tarr, Rob Pickett 3. AGENDA REVIEW • Chairperson Jordan Radin briefly summarized items on the agenda. 4. COMMUNITY PARTICIPATION • None 5. APPROVAL OF MINUTES Chairperson Radin asked for comments on the draft minutes; he shared minor revisions. Vice Chairperson Herman moved to approve the February 16 minutes. Commissioner Eldridge seconded the motion. Vote on the motion: it passed unanimously, 6-0 6. NEW BUSINESS a. Staff Reports (Attachments available upon request) i. Water Resources Monthly Report This is a revised format, which will be further modified after Director of Water Jason Graham discusses ideas for a one-page dashboard with Water Resources Division staff. WATER COMMISSION REGULAR MEETING 03/16/2023 – MINUTES Page 2 Discussion Highlights Commissioners commented on and inquired about various related topics including snow pack and Colorado Big-Thompson Project update expected in April ( https://www.northernwater.org/what-we-do/deliver-water/colorado-big- thompson-project ) ii. Memo: 2022 Cameron Peak Fire Recovery Update No discussion iii. Water Utility Update Senior Director of Integrated Water Operations Jeremy Woolf provided a summary of hiring process status for the Halligan Project Manager (offer was made to candidate this week), Senior Director of Integrated Water Planning & Science (prescreening of candidates has occurred and interviews are scheduled in April), and Senior Director of Engineering & Project Delivery position will be posted this summer. iv. 2022 Utilities Financial Year-End Report Utilities Strategic Finance Director Lance Smith gave an overview of the report regarding year-to-date financials for water, wastewater, and stormwater utility enterprises through December 2022. Operating revenues have remained good with some stagnation while operating expense have come under inflationary pressures on labor and materials. The result of these pressures has been a small decrease in the operating margins for each utility in 2022. Development fees have been weaker for these utilities than in Light & Power due to where growth is continuing within the City. The main financial metrics for each utility exceeded their long-term targets for 2022. Discussion Highlights Commissioners commented on and inquired about various related topics including operating revenue, Water Fund debt service, whether there are restrictions about using reserves to pay debt (no, but this is not recommended; they’ve been used sometimes) such as interest or principal on a bond; Downtown Stormwater Improvement Plan; paying off debt service of $200,000 per year; rate trends (no rate increases for three years, then one increase in 2023). WATER COMMISSION REGULAR MEETING 03/16/2023 – MINUTES Page 3 b. Regular Items (Attachments available upon request) i. Appropriation Need for a New Customer Information System (CIS) a.k.a. Customer Portal Utilities Strategic Finance Director Lance Smith gave an overview of the appropriation request to be taken from available reserves from the Water, Wastewater and Stormwater enterprise funds (along with a similar investment from Light & Power’s reserves). Implementation is estimated to take 24 months: project kick-off is scheduled for late 2023. $4.25 million for outside project management, quality assurance, and contract review including contractual staffing of $1 million per year for two years. Discussion Highlights Commissioners commented on and inquired about various related topics including Fort Collins Connexion billing system (separate from the other four utilities due to immediate need for a billing system); FC Connexion has its own finance manager and funding is from the Light & Power Telecommunications Fund; City staff were understaffed during the first attempt to modernize the billing system, and there is a process in place for vetting the vendor to ensure success: about 2,000 requirements and each vendor is scored during the demonstrations current taking place; the project team evaluating vendors is familiar with the vendors, who are experienced in utilities billing systems; cost of ongoing cost of new billing system (currently spending $600,000 per year for the current billing system’s 20-year contract). Commissioner Primsky moved that the Water Commission recommends City Council approve the appropriation of these funds from the respective utility’s reserves to support the next phase of the modernization of the Utilities Customer Information System. Commissioner Herman seconded the motion. Vote on the Motion: it passed unanimously, 6-0 ii. Poudre Canyon Raw Waterline Improvements Project Funding Special Projects Manager Taylor Scott and Director of Civil Engineering/Capital Projects Matt Fater provided an overview of this critical- infrastructure project and funding request. The project provides a reliable, high-quality water supply; maintains and protects assets and infrastructure to WATER COMMISSION REGULAR MEETING 03/16/2023 – MINUTES Page 4 drive reliability, cost effectiveness, efficiency; and improve the customer experience. The request is time sensitive to request the additional funding from City Council in April and procure a contractor by summer. The project was funded in budget year 2021 as part of the Environmental Health Outcome. Utilities staff has completed the alternatives analysis, conceptual and final design for the improvement, and is moving toward construction in fall 2023. Staff will request additional funds from Council to complete construction. The request is due to market volatility since the 2021 budget was approved and increased cost of constructing the improvements in 2023. Discussion Highlights Commissioners commented on and inquired about various related topics including the structural components of the project (75 feet currently exposed; replacing 500 feet of pipe); permitting (completed except for waiting on easements related to private property owner); timing of request and why it wasn’t requested in the Budgeting For Outcomes process (budget shortfall due to inflation; budget offer was created in spring of 2020 during start of pandemic and changes in the market); exposure most likely began during the 2013 flood but staff didn’t notice it until a few years ago; it becomes more exposed during every spring runoff. Commissioner Herman moved that the Water Commission recommend City Council approve up to $550,000 in additional appropriation for the Poudre Canyon Raw Waterline Replacement Project. Commissioner Eldridge seconded the motion. Vote on the Motion: it passed unanimously, 6-0. 7. COMMISSIONER REPORTS Commissioner Eldridge mentioned this was his second time attending the event (first time representing City of Fort Collins Water Commission) and provided a summary of the 8th Annual Poudre River Forum held on March 3. Colorado Water Conservation Board Director Becky Mitchell, who also serves as the Colorado Commissioner to the Upper Colorado River Commission ( https://cwcb.colorado.gov/focus-areas/interstate/colorado-river-commissioners-corner ) spoke about various related topics including upper and lower basin components, upper WATER COMMISSION REGULAR MEETING 03/16/2023 – MINUTES Page 5 basin (7.5 million acre-feet in 1922; added another 1.5 million af from New Mexico); Congress is stepping in to push harder; California was mentioned many times, Colorado doing well among upper states; lower states trying to do their part to conserve; she highlighted need for more high mountain reservoirs (higher elevation means less water loss); water rights laws; a couple of sessions addressed water and affordable housing; City of Greeley allows contractors to provide cash-in-lieu (it’s more difficult for smaller cities to build out and develop; must present water rights); farmers; a dairy partnered with Noosa, (turned $150 million into crops; $2 billion in milk, cheese and other dairy products); fire mitigation conversation included U.S. Fish and Wildlife Service staff; it was an event worth attending. 8. OTHER BUSINESS None 9. ADJOURNMENT 6:32 p.m. These minutes were approved by the Water Commission on April 20, 2023.