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HomeMy WebLinkAboutWater Board - Minutes - 05/18/1990Water Board Minutes May 18, 1990 Regular Meeting Light and Power Conference Room at 3:00 P.M. Members Present Henry Caulfield, President, Tom Sanders, Vice President, Tom Moore, Tim Dow, Tom Brown, Dave Stewart, MaryLou Smith, Mark Casey (alt.), Paul Clopper (alt.) Staff Mike Smith, Dennis Bode, Linda Burger, Wendy Williams, Andy Pineda, Molly Nortier Guests John Bigham, Agency Coordinator, Northern Colorado Water Conservancy District Dorothy Huff, Observer, League of Women Voter of Larimer County Jan Knight -Sinner, The Co7oradoan David M. Hartly, USDA-ARS, Applicant for Water Board Mark Beck, CSU student Dave Lawton, citizen observing Members Absent Neil Grigg, Ray Herrmann, Terry Podmore President Henry Caulfield opened the meeting. The following items were discussed: Introduction of Guests Mr. Caulfield introduced several guests who were in attendance, two of whom attend on a regular basis. Minutes The minutes of April 20, 1990 were approved as distributed. John Bigham reported that the Northern District is now pumping Windy Gap water. He also reported that Granby is now about 17% of active capacity, up from 14% last month. The snow pack remains in the 80% category, he said. For those who have not signed up for the East and West Slope summer tours, Mr. Bigham announced that all of them are now full. However, there are waiting lists of from 3 to 36 for all of the dates. There is a possibility that the District will add buses, so he encouraged those who haven't signed up to put their names on a waiting list. Water Board Minutes May 18, 1990 Page 2 Wastewater Master Plan Committee Update Mike Smith said that Water Board members recently received a copy of the draft report that the Wastewater Committee had prepared for the City Council. The Committee has asked the Water Board to review the report and comment on it. The report has also been sent to the P&Z Board, the Natural Resources Board, the County Commissioners, County Planning, Timnath, Windsor, Boxelder Sanitation District, South Fort Collins Sanitation District, and the North Front Range Water Quality Planning Association. The City Council will probably take some kind of formal action on the report sometime in July. In the report there is a recommendation from the Committee to purchase property for the possibility of a downstream wastewater plant sometime in the future. The purchase of the property is expected to be on the Council agenda on June 5th. An article on the purchase of the property appeared in the Coloradoan recently. - Mr. Smith proposed that the Water Board Engineering Committee review the report and make a recommendation to the Water Board for the June meeting. The three Water Board members who are on the Wastewater Master Plan Committee, Tom Sanders, Tim Dow and Mark Casey, were pleased with the Committee's progress and think that the recommendations they reached are viable and workable. Moreover, the choices make good sense economically and in terms of regional cooperation. In a few months, if the proposed alternative is acceptable to the City Council, the Committee will address fee structure, and how the fees are calculated, etc. Mike Smith stated further, after talking with representatives from Timnath, Windsor and the manager of Ptarmigan Golf Course, that the reaction appears to be quite favorable to the proposed plans. At this point staff has not heard of anyone who has expressed opposition to the plans. Demand Management Committee Update Mike Smith announced that the Demand Management Committee met yesterday (Thursday, May 17). The Committee focused primarily on the short term issues relating to one of the requirements of the recent state law which requires that the City begin metering all new homes beginning July 1, 1990. One of the issues the Committee will be addressing in the next couple of weeks is who will pay for the meter. Paul Clopper asked what the phased in time frame is for the program to install meters in existing homes. "The next approximately 20 years, Mr. Smith replied, "or by the year 2009." The next meeting of the Demand Management Committee will be held on Thursday, May 24th at 2:00 in the Light and Power Conference Room. 0 Water Board Minutes May 18, 1990 Page 3 Chamber's Review of NCWCD Regional Study Henry Caulfield said that he was the only representative from the Water Board to attend a recent review of the Northern Colorado Water Conservancy District Regional study at the Chamber of Commerce. He reported that the group in attendance was given a preliminary statement of the results of the study by the Engineer from the NCWCD. Mr. Caulfield explained that the study involves 3 areas: 1) the area of the District and Municipal sub -district as it is now; 2) the area that goes down to the Boulder/Weld County line, assuming that one day the District and the Sub -district absorb that area into their boundaries; and 3) the area that includes the 7 entities which are part of the north Denver metro area; for example Thornton. The basic results of the study so far indicate that the current area of the District and Sub -district now has adequate water, generally - speaking, to the year 2020. If you include the second area, you also add water into the system, so there will also be adequate water. But if you add area 3, even though water comes with it, the demand definitely would not be met. In other words, including the demand for area 3 into the total picture would mean inadequate water for the area. Mr. Caulfield emphasized that the results are very preliminary at this time. This was strictly the Northern District's study. It does not include the data and information and ideas of water availability from what is called the SAMSON model study of the South Platte which eventually will be combined with this regional study to create the total picture. It is expected that the regional study will be completed this year. In terms of water availability, "there are ambiguities which I didn't get straightened out in my mind," he said. There was an attempt made to discuss the gross water availability as a constant line form here to the year 2020, and then shifting that line down on the basis of drought considerations. The drought considerations are not the City's formula, but some formula that apparently is a composite of other entities' studies. He went on to say that in terms of the people who have the water supply, the study mentions that Fort Collins has an adequate water supply, but it seems to Mr. Caulfield that they didn't count the amount that the City will receive from the developers between now and the year 2020. "In other words, they counted the water that we have, but not the amount of water that our requirements say we will get," he concluded. Mr. Caulfield said a draft of this report will be available in August, and the Staff and the Engineering Committee will get an opportunity to delve into the report in more detail. He concluded that the report is a comprehensive effort but it was done strictly in terms of municipal and industrial water supply; it doesn't go into the demands for irrigation, "because obviously a lot of the water for the City of Fort Collins will come from irrigation." As water is purchased by the municipalities, it will mean less CBT water for farmers and ranchers. Mr. Caulfield stated that there is no estimate of the impact of Water Board Minutes May 18, 1990 Page 4 this situation; at least not yet. Staff Reports Treated Water Production Summary Dennis Bode said the summary indicates that water of what was projected. We are still lower on the through April at about 88% of our projected use, continued so far in May since it has been rather time water use is about 90% of the use projected year we are under our projections, but that could we warm up and dry out," he concluded. use during April was 82% demand for the year he explained. That has cool and cloudy. At this for May. "So far for the change rather quickly as Tom Moore inquired about the City's daily treated water capacity. Mr. Smith replied, "it will soon be 74 MGD." What was the peak day last year? It was 60.7 MGD. Praise for the 1989 Utility Annual Report MaryLou Smith wanted to commend staff for the outstanding annual report. "I don't think I have seen a better one," she said. She continued by saying it does an excellent job of outlining what happened in 1989 with the Utility and will provide a very good picture for the future of what decisions were made. She thought that a commendation was in order, so for the record she made a motion that the Water Board congratulate the staff for their fine work on the 1989 annual report. Dave Stewart seconded the motion, and the Board stood and applauded to indicate their unanimous approval of the motion. Mike Smith particularly singled out Diana Royval for the overall coordination of the effort. He also praised the contributions of many staff members who prepared the information for the report. Role of Alternates on Boards and Commissions Henry Caulfield reported that the question has come up about the role of alternates on boards and commissions in general. The Council is going to consider the question of the role of alternates at an upcoming Council work session. Some of the issues they will consider will be voting privileges for alternates, their role in the discussion, and whether they should even sit at the table with the regular members. The Council will also consider, after hearing comments from board and commission presidents, if there could be a possibility of gradually phasing out the system of alternates. Mr. Caulfield pointed out that the Water Board has treated alternates as an integral part of the Board. They participate in discussions and sit at the table as regular members, but they are only allowed to vote if a regular member is absent. "The Water Board has enjoyed having the participation of its alternates," he emphasized, "and we are satisfied with the system." The Board concurred with Mr. Caulfield's position. This topic will be discussed further at a later date. Water Board Minutes May 18, 1990 Page 5 Committee Reports Legislative and Finance Committee Tim Dow reported that the legislative session is over, so the committee's activity is minimal. Mr. Caulfield asked if the "Greenway" Bill passed. Wendy Williams said it had and said she would provide a copy for Mr. Caulfield. Mr. Dow said the only other item the committee has focused on is the fact that the budget review is going on. Although the committee has not reviewed the budget themselves, they are willing to coordinate an effort to provide an executive summary of the budget review, if the Water Board would like to receive that information, perhaps for the next meeting or the meeting after that. Mr. Caulfield admitted that the budget is something that is very difficult for the Board to tie into. However, the budget is a reflection of -the major decisions the Board makes overtime without going into the fine print. Nevertheless, he has always considered it a good idea for the Legislative and Finance Committee to meet with staff and review the budget. He mentioned that about a year ago the committee received a briefing from staff on how the financial system works. Each member received a copy of the report that explained the entire mechanism of Utility financing. Mike Smith said that staff can provide copies of that report for anyone who would like it. Mr. Caulfield asked if there were any legislative bills, besides the metering bill, that have affected the Utility. Wendy Williams responded that the legislature has established an interim committee that will begin meeting in June to look at many of the issues they looked at last year: water conservation will.be one of those issues; leasing of water will be another; and trans -mountain diversions could be another. Conservation and Public Education MaryLou Smith reported that the Utility will be well represented at the National "Conserve" Conference in Phoenix in August. She and Terry Podmore will be attending from her committee. In addition Neil Grigg and Ray Herrmann are involved in the planning of the conference and they are also members of her committee. From staff Jim Clark and Molly Nortier will also be going. In addition, she reminded the Board that Jim Clark will be reporting at the July Board meeting on what he is doing in his position as Water Conservation Specialist. Mr. Caulfield asked if there is any indication that the Demand Management Committee will go beyond dealing with the requirement of universal metering. "Yes," she replied. "Our Water Board committee has wanted the Board to look at the whole issue of demand management for a long time," she said. She for one will try to get the Demand Management Committee to look at that issue and come up with at least the Committee's recommendation of what the City's demand management policy is; and not just as it relates to metering, but as it relates to drought response, the rate issues, etc. Water Board Minutes May 18, 1990 Page 6 Paul Clopper had an update on the temporary committee that was formed to look at the Distribution and Collection system. One of the recommendations from that committee that everyone seemed to think was valid was to try to find a master's student through CSU who would follow up on some of the more technical aspects. Mr. Clopper found a Plan B master's candidate through the College of Engineering who would pursue this for very little money. Mike Smith suggested that Mr. Clopper and Jim Hibbard meet and agree on a scope of work that the student could do. New Business In -Lieu -of -Cash Rate President Henry Caulfield stated that, at their February meeting, the Water Board recommended to the City Council an in -lieu -of cash rate of $1100. He referred the Board to p. 5 of the "Water Intelligence Monthly," where the headline states that "CBT Units Remain Steady." Recently he asked Dennis Bode if there has been much fluctuation in the price of water, and if the price is moving up fast enough that the Board should consider changing the in -lieu of cash rate again. He recalled that some Board members suggested that we should keep better track of the fluctuations than we have in recent months. Dennis Bode reported that the price of CBT water continues to rise. In the "Water Intelligence Monthly" he pointed out that several blocks of CBT water went for the following: 50 units at $1235, and 50 units at $1450. Those were the two that were sold at auction. There were another 50 units that sold for $1250, 43 units at $1225 and another 10 at $1250. Since that time staff has also learned of 200 units that were purchased at $1350. Mr. Bode distributed an updated graph of the Fort Collins in -lieu -of rate. He indicated on the graph that prices are definitely on the rise. "It looks very similar to the period around 1977 and 1978," he said. As of May 1, the in -lieu -of rate increased from $900 to $1100. That item was considered by the Water Board in February. Because it takes two readings of the City Council, "and we want it to go into effect on the first day of a month, it takes about two months to implement," Mr. Bode explained. If we were to change it today, Council would consider it at two readings, so it would go to the first meeting in June and since there is no second meeting in June, it would go to the first meeting in July. Therefore, it would be August 1, before it could be implemented. According to the current market prices, it may be appropriate to set the rate at $1300, Mr. Bode proposed. "Is there some concern that we will be behind the curve on some items with the required Council turn around time? Tim Dow asked. "Why can't we have an up to 10-15% flexibility from the established base rate depending on market conditions, so we wouldn't always have to go back for any kind of a change?" Doing it that way, it would only have to come back to the Board • Water Board Minutes May 18, 1990 Page 7 if it exceeded the margin on either side of the established rate, he said. "Our concern from an administrative viewpoint," Mr. Bode explained, "would simply be that if the rate fluctuates too much, it would be difficult to administer for people who do our permits, etc." Mr. Bode assured the Board that the market is fairly steady. "There is a small scattering of prices, but the general trend is fairly steady." He pointed out that it is good to stay fairly close, but he doesn't believe it is critical to stay right on the market price. Mr. Caulfield, in answer to Tim Dow's suggestion, pointed out that the Water Board has very little authority. "This Board is generally advisory to the City Council and doesn't have authority to act," he said. Dave Stewart moved that the Water Board recommend that the in-lieu=of cash rate be increased from $1100 to $1300. Tom Dow seconded the motion. Mr. Caulfield asked if there was further discussion. Tom Moore asked how many new taps have been issued since the first of the year. He also wanted to know how many have turned in the water and how many have paid the rate. "Many of the taps that we have right now have had their raw water rights satisfied from an earlier time," Dennis Bode responded. "I don't think there is a large number of new permits where they turn in water instead of cash," he added. Many of the developers now seem to be paying cash, and the City prefers that arrangement. That is a change from years back when more shares were being turned in, he said. Mr. Caulfield asked Mr. Dow if he would like his suggestion looked into further. He replied that he was satisfied with Mr. Bode's answer. Mike Smith pointed out that there is one section of the code where the Board has authority to act solely, and that is in establishing the raw water conversion rate. "One way to speed up the process, would be to allow the Board to become the sole determining body on the in -lieu -of rate." He went on to say that it probably would be faster and more convenient to have the Board do it "although it could be possible that every other month we could be changing it," he said. Mr. Caulfield related that we have better intelligence on this subject than we used to have. In earlier years, the data just wasn't available, he said. "Can an investor or developer buy certificates before the rate goes up and is there a secondary market?" Mark Casey asked. "The certificate secondary market isn't very good," Mr. Smith replied. Furthermore, we haven't allowed people to speculate with certificates, he added. The question was called. The motion to raise the in -lieu -of cash rate to $1300 passed unanimously. Water Board Minutes May 18, 1990 Page 8 Open Meetings Policy This item will be discussed at a later meeting. The wrong attachment was sent out with the memo from the City Attorney's office. Other Business Tom Brown asked if anything has happened on the Thornton issue. Staff has reviewed most of the Thornton engineering report, Mike Smith replied. Next week staff will be meeting with the attorneys, and after that "we should have some ideas about what the potential impacts are." Mike Shimmin is the attorney representing the City on the Thornton issue. Mr. Caulfield pointed out that there was a recent newspaper article concerning the Northern Colorado Water Conservancy District's position with regard to the Thornton issue. Mr. Caulfield reiterated the City's position regarding a water court date: The City agreed with others involved that there should be a delay. Furthermore, staff is carefully studying the matter, and there is a committee from the Water Board that will be looking further into the issue. Mike Smith commented that as soon as staff and the consultant have completed a review and it has been reviewed with all of our policy makers, we will take the next step. Tim Dow reported that the Northern District Board met within the last month to discuss various issues regarding the litigation. Many of the smaller ditch companies in the Poudre River Basin and the Water Users Association, of course, were interested and wanted the District to substantially take the lead role. Mr. Caulfield asked if there had been an official decision that there are going to be a number of measurements taken on return flow. Mr. Bigham said that was decided at the Board meeting and by now they probably have contacted both the consultants. The Board voted the dollars to begin the process, he said. Irrigation Ditch Concerns Tom Sanders asked to have the subject of local ditch companies and "their attitude towards trees" placed on a future Water Board agenda. "I would like to establish some kind of communication with the ditch companies," he proposed. Dr. Sanders thinks the City should be contacted before any major tree cutting is initiated. Currently the policy is that the ditch company has the right to cut down any trees they want at any time they want. He stressed that he thinks it is very important to initiate some discussion about preserving some of the old trees along the ditch banks. Tom Moore, president of a local ditch company, brought up the point of liability should a tree fall on one of the homes nearby. He wondered if the City should become involved in the liability associated with preserving those trees. Water Board Minutes May 18, 1990 Page 9 Dr. Sanders emphasized that any diseased or hazardous tree should be removed. What he is concerned about is removal of trees that are considered a nuisance because of leaves or overhanging branches or the fact that they are consuming water from the ditches. Tom Moore reiterated that there are two sides to the issue. "The liabilities are horrendous," he contends. Mr. Moore believes that the ditch companies generally contact the City Forester when tree cutting is being contemplated. Mr. Caulfield asked Dennis Bode if this subject ever comes up at the ditch company board meetings. "Yes, it does come up," Mr. Bode replied. He explained that there is a group working on ditch issues and they are trying to foster the kind of cooperation that Dr. Sanders mentioned. One example would be the ditch company working with the City Forester to identify the trees that could appropriately be removed. There is an effort currently to suggest to the ditch companies that the City would appreciate knowing about proposed tree cutting programs, "and offer our assistance on the front end of things." Dave Stewart contends that this issue is more in the venue of the Natural Resources Board rather than the Water Board. MaryLou Smith suggested that perhaps the Water Board could make a statement in support of the kinds of things that Dennis Bode brought up. The subject will be discussed further at a later date. Since there was no further business the meeting was adjourned at 4:40 P.M. Lua+dr doAild Sec,ve t�r�