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HomeMy WebLinkAboutWater Board - Minutes - 08/22/2002City Council Liaison David Roy Staff Liaison DeEtta Carr 221-6702 Water Board Chairman Water Board ViceChairman Tom Sanders 491-5448 John Morris 491-0185 Secretary Vicki Mesa Roll Call Board Present Chairman Tom Sanders, Vice Chairman John Morris, Ted Borstad, Tom Brown, Jim Finley, Bill Fischer, David Lauer, Rami Naddy and Doug Yadon Board Absent John Bartholow and Robert Ward Staff Present David Agee, Patty Bigner, Dennis Bode, DeEtta Carr, Laurie D'Audney, Kevin Gertig, Jim Hibbard, Brian Janonis, Vicki Mesa, Michael Smith, Susan Smolnik, Bill Switzer, Ellen Switzer, and Wendy Williams Guests Turf Masters Sod Farm Manager Brian Ridnour and ISIS Representative Laura Sandell Meeting Opened Chairman Tom Sanders called the meeting to order at 3:12 p.m. Update on the Drought Response Plan Water Resources and Treatment Manager Brian Janonis stated that the Drought Response Plan had just been completed and given to the Board prior to the beginning of this meeting. Chairman Tom Sanders accepted the plan and requested staff present it to the Board at the next meeting. Update on Water Restrictions General Manager Mike Smith began by discussing conservation efforts being done in other front range cities. He commented that after watching what is being done elsewhere, and due to the fact that we are very close to our target, that staff is not recommending any additional restrictions. Mike responded to questions, stating he didn't foresee tighter restrictions at this time, but the situation would be closely monitored throughout the year. He emphasized that he did not believe there was a need for further mandatory restrictions. He commented that conservation measures and tips would continue to be visible in media. Fort Collins Water Board Minutes Page 2 August 22, 2002 Mike reported that a public relations firm had been selected to help with education and communication efforts. Water Resources Manager Dennis Bode stated that if we were operating under the level conditions of Denver Water, we could implement level three of our water restrictions. He clarified the Utilities could restrict all lawn watering under this proposed level. Mike clarified the Utilities is operating under a level two condition. He stated there was favorable response when the City asked for voluntary reductions, adding that since the mandatory restrictions had been in place, there had only been an additional 4 percent gain in water savings. Turf Masters Sod Farm Manager Brian Ridnour spoke of the need to keep moisture on the ground, stating that grass and living plants can be kept alive by watering minimal amounts once a month. He reported that they have hired a public relations firm and have continually requested information be published for consumers. Boardmember Rami Naddy asked Water Conservation Specialist Laurie D'Audney to provide information to the Board regarding the amount of moisture needed to keep plants and grasses alive. He also asked for information regarding the various types of grass and how they survive in various climates. Mike Smith spoke of compliance issues, noting it was more difficult to make businesses comply than homeowners. Tom Sanders asked what would happen if there was not a sufficient snowpack next year. Mike Smith stated lack of snowpack could mean very minimal outdoor watering for next year. He clarified average annual water usage city-wide is 40 percent outside usage and 60 percent inside usage. Tom Sanders expressed his support of voluntary restrictions and of the need for the public relations firm to make the information straightforward and simple for the public to understand. Proposed Water Conservation Rates Mike Smith stated that City Council was interested in looking at making the rate structure more of an increasing block rate. He stated that staff will present the proposed rates to Council at the September 10 Study Session. He commented that Council's goal was to have a block -rate system implemented by January 1, 2003. He gave a brief overview of the proposed water rate structure. He stated that the proposed 2003 water conservation rates were designed to be revenue neutral for 2003 (no windfall or shortfall of revenue) and include the previously projected 6 percent rate increase for 2003 and the expectation of a 10 percent reduction in water use. Fort Collins Water Board Minutes Page 3 August 22, 2002 He gave a PowerPoint presentation and explained the various rates for single-family residential, duplex -residential, and multi -family rates. He stated Council had requested the residential rate have a block in it and explained how each of the various block rates were calculated. Utility Rate Analyst Bill Switzer responded to questions from the Board and reported that rates were calculated after creating 12-month profiles. Mike Smith stated the term "revenue neutral" meant that the Utilities is attempting to cover its costs and not to make a profit. He commented that the Utilities hope is to encourage customers to change their water use as well as their attitudes on conserving. Mike Smith stated the commercial block rates would be the most difficult to calculate due to the many variables. He added that commercial users are important to the viability of the economy. He also noted it's important not to raise the rates so high they would move out of the community and to keep it fair. He explained how conservation step charges are calculated. He clarified there are no contracts with any commercial users that would prohibit implementing the program. Mike Smith stated they are looking to see if other communities are using the block -rate system and expressed the need to get the message out. Boardmember David Lauer asked what percentage of commercial customers would be involved. Mike Smith stated commercial users are a small percentage, but they are the largest users. Customer Connections Manager Patty Bigner added that outreach was planned for high water users and spoke of the various industries which use large amounts of water. (e.g. hotels, restaurants, health clubs) These groups will be encouraged to look for ways to conserve water in their operations. Mike Smith stated the rate structure is proposed for the long term. He stated that members of the Council feel that if there were a significant decrease in water use, then there would not be a need to build additional reservoirs. The Board spoke of subsidized growth issues related to the cost of reservoirs. Mike Smith stated it was not the Utilities position to develop rates to change the environment unless mandated by the community. Mike reported staff is gathering usage information from other communities to compare and see where we are with our numbers. Mike stated that the NRAB had requested a presentation so they could make a recommendation to Council. Mike spoke in support of the concept, but stated that the issues are: (1) where do you put the rates; and (2) what are you trying to accomplish. Tom Sanders asked how long after a drought situation would the rates be adjusted back to a reasonable rate. He stated that he would not support the plan unless there were a stipulation clearly defining when the 10 percent increase would be lifted at a specific time. He stated this was a reasonable tool for conservation. Fort Collins Water Board Minutes Page 4 August 22, 2002 David Lauer expressed concerns about lifting the restrictions. Boardmember Tom Brown concurred with Tom Sanders, stating that after the drought is over, the rate structure be adjusted accordingly. Mike Smith said we would revisit rates on an annual basis, and when the extreme conditions are over then the steps in the rate structure would be adjusted. Boardmember Doug Yadon supported the rate structure, believing it encourages conservation. The Board discussed the pros and cons of amending the rates when the extreme weather conditions are over. Boardmember Ted Borstad made a motion to recommend approval of the proposed water conservation rates and that the rates be evaluated on an annual basis, and when the extreme conditions are over the steps in the rate structure be adjusted to reflect that. David Lauer seconded the motion. The Board discussed the need for flexibility in the review process. Boardmember Bill Fisher suggested reviewing the Plan on a annual or semi-annual basis. Bill Switzer stated the rates are based on an annual basis and commented that semi-annual rates would be too difficult. After further discussion, Bill Fisher expressed concerns that a month be chosen to review. After further discussion the vote on the motion was as follows: eight approved and Bill Fischer opposed because he believed a specific month for review should be tied to the motion. Mike Smith spoke of various views of members of Council related to the creation of dams. He spoke of the future of the Halligan Reservoir, noting that staff may request Council postpone its decision for an additional two years. Bill Fischer expressed concerns about North Poudre Irrigation and of the importance of making a recommendation. He stated North Poudre might not accept an extension and that the Water Supply Committee needs to consider the issue as soon as possible due to time constraints. The Board expressed frustrations regarding water storage. Fluoride Technical Study Group Update Rami Naddy reported that all majority reports are in but the minority reports are not. Tom Sanders encouraged new members to review the information so they can reach their own conclusions and that the Board would need to review the study before sending it to Council. Fort Collins Water Board Minutes Page 5 August 22, 2002 Water Supply Committee Report Tom Brown reported that the Water Supply Committee met, stating the main focus of the meeting was the Drought Response Plan and spoke of various rate components. Other Business David Lauer made a motion to send a letter through the Mayor and City Council to Northern Colorado Water Conservancy District (NCWCD) letter showing the support of the Water Board for the Colorado -Big Thompson Project. John Morris seconded the motion. The motion passed with Ted Borstad abstaining from the vote. New Business Tom Sanders spoke of the upcoming tour of the Joe Wright Reservoir site and strongly urged all members to participate. Adjournment The meeting was adjourned at 5:10 p.m. Q-F- i 0. CAM DeEtta Carr, Water Board Liaison